Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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Apr 12, 2018 |
signed chap.59 |
Apr 02, 2018 |
delivered to governor |
Mar 30, 2018 |
returned to senate passed assembly message of necessity - 3 day message ordered to third reading rules cal.27 substituted for a9509c referred to ways and means delivered to assembly passed senate message of necessity - 3 day message ordered to third reading cal.740 print number 7509c |
Mar 30, 2018 |
amend (t) and recommit to finance |
Mar 13, 2018 |
print number 7509b |
Mar 13, 2018 |
amend (t) and recommit to finance |
Feb 16, 2018 |
print number 7509a |
Feb 16, 2018 |
amend (t) and recommit to finance |
Jan 18, 2018 |
referred to finance |
Senate Bill S7509C
Signed By Governor2017-2018 Legislative Session
Enacts into law major components of legislation which are necesary to impliment the state fiscal plan for the 2018-2019 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: Mar 30, 2018
aye (52)- Addabbo Jr.
- Akshar
- Alcantara
- Avella
- Bailey
- Benjamin
- Bonacic
- Boyle
- Breslin
- Brooks
- Carlucci
- Comrie
- DeFrancisco
- Dilan
- Flanagan
- Funke
- Gallivan
- Gianaris
- Golden
- Griffo
- Hamilton
- Hannon
- Helming
- Jacobs
- Kaminsky
- Kavanagh
- Kennedy
- Klein
- Krueger
- LaValle
- Lanza
- Larkin
- Little
- Marcellino
- Montgomery
- Murphy
- O'Mara
- Parker
- Peralta
- Persaud
- Phillips
- Ranzenhofer
- Ritchie
- Rivera
- Robach
- Sanders Jr.
- Savino
- Seward
- Stavisky
- Stewart-Cousins
- Valesky
- Young
excused (1)
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Mar 30, 2018 - Finance Committee Vote
S7509C33Aye0Nay3Aye with Reservations0Absent1Excused0Abstained-
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Finance Committee Vote: Mar 30, 2018
aye (33)excused (1)
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Bill Amendments
2017-S7509 - Details
- See Assembly Version of this Bill:
- A9509
- Law Section:
- Executive Law
- Laws Affected:
- Amd Various Laws, generally
2017-S7509 - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption
2017-S7509 - Sponsor Memo
BILL NUMBER: S7509 SPONSOR: BUDGET TITLE OF BILL: An act to amend the real property tax law, in relation to the annual growth in STAR benefits (Part A); to amend the real property tax law, in relation to making the STAR income verification program mandatory; to amend the tax law, in relation to the calculation of income for basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and to repeal section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); to amend the real property law, in relation to real property transfer reports (Part C); to amend the real property law, in relation to reports of manufactured housing park owners (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general municipal law and section 2023-b of the education law, relating thereto (Part E); to amend the real property tax
law, in relation to taxable state land (Part F); to amend the real prop- erty tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extend- ing the statute of limitations for assessing tax on amended returns (Part H); to amend the tax law, in relation to providing for employee wage reporting consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and bever- ages sold by restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller infor- mation regarding unwarranted fixed and final debt (Part K); to amend the social services law, in relation to the disclosure of certain informa- tion relating to a person receiving public assistance to the commission- er of taxation and finance (Part L); to amend the tax law, in relation to establishing a conditional tax on carried interest (Part M); to amend the tax law, in relation to permitting the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part N); to amend the tax law and the administrative code of the city of New York, in relation to the definition of resident for tax purposes of the personal income tax (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); to amend the tax law, in relation to the temporary deferral of certain tax credits (Part S); to amend the tax law, in relation to extending the real estate transfer tax statute of limitations for refunds from two to three years and providing for consistent joint liability treatment within the real estate transfer tax (Part T); to amend the tax law, in relation to the taxation of cigars (Part U); to amend the tax law and the administrative code of the city of New York, in relation to sales and use taxes on gas and electric service; and repealing section 1105-C of the tax law relat- ing thereto (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medicines and remov- ing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain part- ners of a limited partnership and members of a limited liability company (Part X); to amend the tax law, in relation to exempting items of food and drink when sold from certain vending machines from the sales and compensating use tax (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes in certain counties, in relation to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); to amend the tax law, in relation to imposing an internet fairness conform- ity tax and requiring non-collecting sellers to provide specified infor- mation to New York purchasers and to the commissioner of taxation and finance (Part AA); to amend the tax law, in relation to imposing a health tax on vapor products (Part BB); to amend the tax law, in relation to the imposition of an opioid epidemic surcharge; and to amend the state finance law, in relation to establishing the opioid prevention, treatment and recovery account (Part CC); to amend the tax law, in relation to establishing a healthcare insurance windfall profit fee (Part DD); to amend the racing, pari-mutuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee; and providing for the repeal of certain provisions upon the expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to providing funds for the after- care of retired horses (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facili- ties, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); to amend the state finance law, in relation to the commercial gaming revenue fund; and to repeal subdivi- sion 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); and to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; to repeal certain provisions of such law relating thereto; and providing for the repeal of certain provisions upon expiration thereof (Part II) PURPOSE: This bill contains provisions needed to implement the Revenue portion of the FY 2019 Executive Budget. This memorandum describes Parts A through II of the bill which are described wholly within the parts listed below. Part A - Cap annual growth in STAR benefit amounts at 0%. PURPOSE: This bill would impose a zero percent cap upon the growth in Basic and Enhanced STAR benefits, beginning with the 2018-19 school year. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: STAR was enacted in 1997 to offset rising property taxes for homeowners and to provide additional targeted property tax relief to senior citi- zens. Since then, enhancements have been made that have contributed to increases in the current and projected cost of the STAR program. The costs of the STAR program increased approximately 33 percent between FY 2002 and FY 2017. The direct costs of the STAR program in FY 2017 were over $3.3 billion. Existing law allows all savings to grow at a rate not to exceed 2 percent annually, as implemented with the FY 2012 Enacted Budget. This bill would amend Real Property Tax Law § 1306-a to lower the cap on the growth of tax savings under the STAR Program, beginning with the 2018-19 school year. As a result, Basic and Enhanced STAR savings will be capped at the 2017-18 savings amounts for these programs. Capping growth of the program at current levels is critical for a balanced State budget. Notably, school tax levy growth has averaged below 2 percent since the enactment of the Governor's property tax cap; reducing STAR benefit growth reinforces the incentive for school districts to continue to control their costs and minimize the growth in their tax levies. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. Capping the exemption benefits would reduce General Fund spend- ing by $49 million in FY 2019. EFFECTIVE DATE: This bill would take effect immediately. Part B - Make Participation in the Income Verification Program (IVP) Mandatory for Enhanced STAR Recipients. PURPOSE: This bill would make participation in the STAR Income Verification Program (IVP) mandatory for eligible senior citizens wishing to receive Enhanced STAR. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: In order to be eligible for Enhanced STAR, the applicant's income must not exceed a certain ceiling, which is $86,000 for 2018. Under current law, applicants are required to demonstrate their income eligibility in one of two ways: 1. They may bring income documentation (generally, an income tax return) to the assessor's office each year as part of an annual renewal applica- tion. The assessor determines their eligibility annually based on the documentation provided. 2. Alternatively, they may enroll in the STAR IVP. The Department of Taxation and Finance will then annually determine their income eligibil- ity based upon its income tax records, and will notify the assessor of its findings. Applicants who have enrolled in the IVP need not reapply for the exemption thereafter so long as they file a personal income tax return each year. This bill would eliminate the first option and would require all Enhanced STAR recipients to be enrolled in the IVP, effective with applications for the exemption on 2019 assessment rolls. This would include recipients of the senior citizens exemption, who previously received Enhanced STAR automatically. In addition, to ensure that the Department can accurately verify the incomes of low-income persons who are not legally required to file income tax returns, the bill would provide that, in order to receive the exemption, such persons must report the sources and amounts of their income to the Department, in a manner to be prescribed by the Depart- ment. Further, to maximize both administrative efficiency and fairness to the taxpayer, the bill would provide that when an eligibility ques- tion is resolved by the Department after school taxes have been levied, the Department may pay the refund to the taxpayer directly, or collect the deficiency from the taxpayer directly, as appropriate. Verifying eligibility requirements ensures that the appropriate amount of benefit is given to the appropriate taxpayer. Prior to the implemen- tation of the STAR Registration Program, numerous properties received Basic STAR exemptions to which they were not entitled. This was largely due to the fact that before the STAR Registration Program was imple- mented in 2014, the Department had no direct role in the verification of income for Basic STAR (which is subject to a fixed income limit of $500,000). Once a mandated re-registration program was in place and the taxpayer identification numbers of all Basic STAR recipients became available, a more thorough income verification process was implemented, resulting in ongoing estimated savings of more $50 million. The STAR Registration Program does not extend to the Enhanced STAR exemption. As a result, the Department cannot verify that all Enhanced STAR recipients meet the eligibility requirements. This bill would enable it to do so. That will ensure that an Enhanced STAR benefit will be granted only in appropriate cases, and reduce the cost of the program to the State. At the same time, by removing the non-IVP option, the bill would make it easier for qualified senior citizens to keep their Enhanced STAR exemptions, because they will no longer need to reapply for the exemption annually by the locally applicable deadline. This bill would apply to applications for the Enhanced STAR benefit beginning with 2019 assessment rolls. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. Making participation in IVP mandatory would reduce General Fund spending by $35 million annually. EFFECTIVE DATE: This bill would take effect immediately. Part C - Require Filing RP-5217 for Co-Ops and Co-Op Shares. PURPOSE: This bill would require a real property transfer report to be filed with the Department of Taxation and Finance ("DTF") whenever there is a sale of a co-op apartment or unit, or whenever there is a transfer or acqui- sition of a controlling interest in an entity with an interest in real property (i.e., an equity sale). SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Under existing law, a real property transfer report (Form RP-5217) needs to be filed whenever a deed is recorded. The report is a public record that contains basic information about sale of real property, most nota- bly, the names of the buyers. Because cooperative housing apartment units are transferred by the sale of a share or shares in a cooperative housing corporation, those transactions, like the transfer or acquisi- tion of an entity with an interest in real property, do not require the filing of a deed and, therefore, do not require the filing of a real property transfer report. This bill would require a real property transfer report to be filed with the Department of Taxation and Finance ("DTF") whenever there is a sale of a co-op apartment or unit, or whenever there is a transfer or acqui- sition of a controlling interest in an entity with an interest in real property (i.e., an equity sale). This is beneficial for two reasons. First, assessment records do not typically contain the names and addresses of co-op 'owners' (who technically are not property owners, but are rather shareholders with proprietary leases), which can lead to delays in the issuance of STAR checks to such individuals. Requiring a real property transfer report will provide more information to DTF to help facilitate this process. Second, requiring real property transfer reports for equity sales of business entities would help both local assessors and DTF value complex property for real property tax purposes. For example, DTF is required to provide advisory appraisals for certain "specialty properties" such as power plants. Because these types of sales often occur by way of an equity sale, it is difficult for DTF to obtain data about comparable sales that can be used for valuation purposes. This proposal would assist both DTF and local assessors by placing equity sales on the same footing as other transfers of real property in New York State. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect on January 1, 2019 and would apply to trans- fers and acquisitions occurring on and after that date. Part D - Reporting Requirement for Mobile Homes. PURPOSE: This bill would improve the administration of the STAR Credit program by requiring that manufactured home park owners or operators report addi- tional information to the Department of Housing and Community Renewal ("DHCR") and the Department of Taxation and Finance ("DTF"). SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Under current law, owners of manufactured home parks must file annual registration statements with DHCR. However, these statement do not typi- cally contain the names and addresses of the tenants residing in those locations. The failure to provide this information can delay the issu- ance of STAR checks to these individuals. This bill would amend the Real Property Tax Law to require, beginning in 2019, home park owners to file their registration statements on a quar- terly basis, and would also require the park owners to report, for each calendar quarter, the names of all residents and tenants in the park, and such other information as the DHCR Commissioner may require. DHCR would be required to provide DTF with a copy of each quarterly statement within 15 days of receipt. These reports would help DTF, as well as local assessors, administer the STAR credit and STAR exemption programs and avoid unnecessary delays caused by a lack of tenant information. Many manufactured home parks, by their very nature, regularly have newly manufactured homes entering, and existing manufactured homes leaving, the parks. This results in regular fluctuations in value that have real property tax implications. The transient nature of manufactured home park residents also complicates administration of the STAR credit and exemption, as it is difficult for DTF and local assessors to keep apprised of changes in manufactured home parks because there is no existing requirement that the annual reports that are currently filed with DHCR be shared with DTF, and there is no other source for such information. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect immediately. Part E - Technical amendments to property tax laws. PURPOSE: This bill would make technical amendments to various provisions of law relating to property tax programs. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would update or clarify laws relating to property tax programs in six respects: * PROPERTY TAX FREEZE CREDIT: The property tax freeze credit was effective in taxable years 2014 through 2016. The provisions of law that governed the credit remain on the books, though they are now inoperative and obsolete (see Tax Law § 606(bbb), General Municipal Law § 3-d and Education Law § 2023-b). This bill would repeal those obsolete provisions. At the same time, it would preserve the tax cap reporting requirements that they contain by recodi- fying the substance of subdivision 2 of General Municipal Law § 3-d, and subdivision 2 of Education Law § 2023-b, as a new General Municipal Law § 3-d and Education Law § 2023-b, respectively. * SCHOOL TAX RELIEF FUND: The enacted FY 2018 Budget contained a provision that repealed section 54-f of the State Finance Law, as part of the conversion of the New York City tax rate reduction program into a State tax credit program (L.2017, Ch.59, Pt. C). However, a reference to former SFL § 54-f still appears in SFL § 97-rrr, the statute that establishes a "school tax relief fund." This bill removes that obsolete reference from § 97-rrr. * PARTIAL PAYMENTS OF PROPERTY TAXES: The enacted FY 2018 Budget contained a provision that broadened the authority of local governments to allow partial payments of property taxes (Real Property Tax Law § 928-a). An issue has arisen in connection with counties that prepare tax bills or maintain the accounting system for one or more municipalities within the county. Under the law as writ- ten, if a municipality in such a county adopts a partial payment program, the county could be compelled to make costly software changes to accommodate the municipality's program. The impact upon the county could be magnified if different municipalities adopt different types of programs. This bill would provide that in a county that provides such services, a municipality may not adopt a partial payment program without the county's consent. * PROPERTY TAX PAYMENT DEADLINE EXTENSIONS: Section 925-b of the Real Property Tax Law enables local governments to give senior citizens an extra five days to pay their property taxes if they are receiving Enhanced STAR exemptions or senior citizen exemptions. However, seniors receiving Enhanced STAR credits are not currently eligible for such extensions. This bill would make them eligi- ble for these extensions. To ensure that this can be administered effec- tively, the bill would also modify the Tax Law secrecy provisions to enable the Tax Department to disclose the identities of Enhanced STAR credit recipients to tax receivers and collectors. * CERTIFICATION OF STAR EXEMPT AMOUNTS: The Department of Taxation and Finance is required to compute and certi- fy STAR exempt amounts every year at least 20 days before the filing of the tentative assessment roll. The Department is also required to adjust the Enhanced STAR exempt amounts annually to account for inflation, based upon Consumer Price Index data that is released by the United States Department of Labor in October of each year. These two require- ments are incompatible in the case of school districts whose taxes are levied upon prior year assessment rolls (as is done in Westchester Coun- ty), because the required CPI data does not become available until well after the filing of the applicable tentative - and final - assessment rolls. To ensure that property owners in these school districts receive the benefit of the inflation adjustment provided by law, the Tax Depart- ment has refrained from establishing those exempt amounts until the required CPI data has become available. This bill would ratify the Department's practice. * LIMIT MARRIED COUPLES TO ONE STAR CHECK: A new subparagraph (A) of § 606(eee)(6) of Tax Law would make it clear that the STAR credit may only be claimed upon one residence for a married couple, unless they are legally separated. A similar restriction currently applies to the STAR exemption (Real Property Tax Law, § 425 4-A A). The qualifications for the STAR credit program were designed to mirror those of the STAR exemption program. However, the language in the STAR exemption statute concerning married couples with multiple residences was not carried over into the credit statute due to an oversight. As a result, Tax Law § 606(eee) does not expressly bar married couples from receiving STAR credits on two residences simultane- ously, as the STAR exemption statute does. This bill clears up any possible ambiguity by expressly providing that a married couple may only receive one STAR benefit at a time, unless legally separated. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect immediately. Part F - State-Owned Lands Tax Cap Limitation. PURPOSE: This bill would reform the process for determining the amounts of taxes due on taxable State-owned lands. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would provide that, on and after April 1, 2018, the taxes payable on a taxable parcel of state land shall be equal to (1) the taxes that were payable on that parcel in the prior year multiplied by (2) the "allowable levy growth factor" determined for the applicable local fiscal year or school year under the appropriate tax cap statute (i.e., General Municipal Law § 3-c or Education Law § 2023-a). As a result, the tax payments on these lands would automatically increase each year by the rate of inflation or two percent, whichever is less. Tying the rate of growth to the tax cap formula means that, in most cases, the State land tax payments would grow at a rate that matches the growth rate of the overall local tax levy. In more limited cases - name- ly, where the tax levy has grown at a rate that is below the tax cap - the State land tax payments will increase at a rate in excess of the overall levy. The only time the State land tax payments would grow at a lower rate than the overall tax levy is where the tax cap has been over- ridden, and even in those cases, the tax payments would still grow by the allowable growth factor. This formula would not apply to the initial payment of taxes on taxable State land. Accordingly, in the case of newly-acquired taxable State land, or previously-exempt State land that becomes taxable due to a statutory change, the initial tax payment would be determined in the traditional manner (i.e., the taxable assessed value as determined by the local assessor would be multiplied by the local tax rate). Each year thereafter, the prior year's payment would be annually increased by the allowable levy growth factor. Current law requires State tax payments to be based on property values that must be reassessed and reevaluated every year. This imposes a very substantial administrative burden on both local and State officials, though the benefit associated with performing these tasks is very limit- ed. This proposal would make property valuations necessary only in the initial year the property is taxable. Thereafter, the payments would automatically grow at the same rate as the local tax burden in general, resulting in a system of fair and reasonable tax payments coupled with mandate relief and increased efficiency. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would provide a system of fair and reasonable tax payments. EFFECTIVE DATE: This bill would take effect immediately. Part G - Telecom Mass Property Assessments Extender and Fix. PURPOSE: This bill would extend the law authorizing the State to determine assessment ceilings for telecommunications property for another four years, while providing for a gradual phasing-in of the impacts, in place of the abrupt drop that is now pending. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The assessment ceiling program for telecommunications property would be extended by four years, expiring on January 1, 2023. It is currently set to expire on January 1, 2019. The bill would also provide a smooth transition from current assessment ceiling values to more accurate values. Under existing law, the assess- ment ceiling established each year, from 2015 through 2017, cannot be 10% below or above the assessments that were determined by local asses- sors in 2014. As a result, the taxable assessed values of these proper- ties changed only slightly in 2015, and did not change at all in 2016 or 2017. Generally, this has resulted in values that, as of December of 2017, are dramatically higher than what they will be once the program is fully implemented. This bill would extend and restructure the transitional provisions of the program so these impacts will be phased in gradually. Specifically, it would allow assessment ceilings to deviate from the 2014 assessments by as much as 25% in 2018, 50% in 2019 and 75% in 2020. Then, in 2021, the ceilings will no longer be tied to the 2014 assessments. Absent this provision, the ceilings would generally decline precipitously in 2018, significantly reducing the taxable assessed value of telecommunications property throughout the State and causing a shift in the tax burden to residents and businesses. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect immediately. Part H - Extend the statute of limitations on amended tax returns. PURPOSE: This bill would extend the statute of limitations for assessing addi- tional tax based on changes reported on an amended return for Article 9, Article 9-A, Article 22, and Article 33 taxpayers as well as New York City personal income tax taxpayers. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Under current law, the Department of Taxation and Finance, in most cases, has three years from the original filing date of a tax return to audit and assess additional tax. An amended return does not extend the statute of limitations, regardless of when it is filed. Consequently, if a taxpayer amends their return after the three-year statute of limitations expires, and the amended return is audited and subsequently determined by the Department that additional taxes are due, the Department is unable to assess additional tax. This vulnerability encourages the filing of questionable returns on or near the statutory deadline, including amended returns that claim over- payment of tax and request refunds. Under current law, if it is deter- mined, after the statute of limitations has expired, that a refund should not have been issued, the Department cannot recover the money unless the refund is an "erroneous refund" based on the Department's clerical or computational error. This bill would extend the statute of limitations to allow assessments that are based on changes or corrections in an amended return to be made at any time within three years after the amended return is filed. This would allow the Department the time necessary to audit these amended returns and make any necessary additional assessments. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase revenues by $3 million annually begin- ning in FY 2019. EFFECTIVE DATE: This bill would take effect immediately and apply to amended returns filed on or after the date this bill becomes a law. Part I - Provide for employee wage reporting consistency between the Departments of Taxation and Finance and Labor. PURPOSE: This bill would provide for consistent quarterly reporting requirements for employers and other entities responsible for the collection and remittance of withholding taxes. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Employers and other entities responsible for the collection, remittance, and reporting of withholding taxes are required to file a Form NYS-45 on a quarterly basis. The Form NYS-45 operates as a wage reporting vehicle, and is also used to report both the New York withholding and Unemploy- ment Insurance ("UI") amounts collected. It is jointly utilized by the Department of Taxation and Finance (DTF) and the Department of Labor (DOL). Employers and other entities required to file a Form NYS-45 currently provide employee-level detail, including the employee name, social secu- rity number, and total UI renumeration paid on a quarterly basis, as required by DOL. However, the Tax Law currently requires reporting of employee-level wage and withholding amounts to DTF on an annual basis. This bill would amend the Tax Law to provide for consistent quarterly reporting of wage information to both DTF and DOL. The amendments would also require the inclusion of additional employee-level detail on a quarterly basis, including gross federal wage and New York withholding amounts. This additional employee-level information is currently captured and reported to both Departments on an aggregate basis, and the amendments would require only the inclusion of the information already in an employer's possession. The revisions would also provide for the imposition of penalties if the employer fails to complete an accurate withholding reconciliation on a quarterly basis, rather than an annual basis. This bill would provide DTF with the documentation necessary to more readily identify issues on employer filings, correct such filings, and improve the personal income tax refund process. The amendments would also enhance the Department's ability to protect against potential revenue losses and assist in improving the timely issuance of personal income tax refunds. Finally, the amendments would assist in identifying potentially fraudulent filings, including false employer reports and fraudulent personal income tax returns, whereby individuals request personal income tax refunds they are not entitled to. This bill would not add to the record-keeping requirements of an employ- er, nor would it require the creation of additional or new records. The additional information required under this bill is already maintained by New York State employers both large and small, therefore the require- ments would not be burdensome and the impact to any size employer should not be significant. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would provide annual minimal revenue increases begin- ning in FY 2020. EFFECTIVE DATE: This bill would take effect immediately and be applicable for calendar quarters beginning on or after January 1, 2019. Part J - Simplify the sale for resale exemption for prepared food. PURPOSE: This bill would amend the Tax Law to grant a resale exclusion to restau- rants, cafeterias, caterers and others when purchasing prepared food for resale. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Sales tax is intended to be collected only once from a retail customer. When businesses purchase goods and services for resale, those purchases are generally exempt from sales tax with the submission of a properly completed resale certificate to the vendor. However, Tax Law § 1105(d) imposes sales tax on any purchase of sand- wiches or other restaurant-type food when sold in establishments such as restaurants, cafeterias, or taverns, or by caterers. As it does not contain a resale exclusion, sales tax still must be paid by a vendor on any purchase of prepared food, and then it must be collected by a vendor from the customer at the time the prepared food is resold. This bill would instead allow vendors to purchase food exempt from sales tax when they provide a properly completed resale certificate at the time of purchase. This change would promote tax administration efficien- cies and conform the Tax Law to the best practices of other states. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect on June 1, 2018 and would apply to sales made on and after that date. Part K - Allow Warrantless Tax Debt to Be Assessed Against Unclaimed Funds. PURPOSE: This bill would aid in the collection of taxes owed to New York State by authorizing the Commissioner of Taxation and Finance to share informa- tion with the Comptroller to collect unclaimed funds for taxpayers that have unwarranted fixed and final debts. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would aid in the collection of taxes owed to New York State. The bill would authorize the Commissioner to share information with the Comptroller to collect unclaimed funds of taxpayers that have unwar- ranted fixed and final debt, and require the Comptroller to keep such information confidential. The authorization would pertain only to infor- mation regarding taxes owed that are fixed and final and no longer subject to administrative or judicial review. Common law and case law authorize and permit the Comptroller to satisfy debt owed to the State with unclaimed funds of a debtor/taxpayer when 1) a debt is owed; 2) the debtor/taxpayer received notice of the debt; and, 3) the debtor/taxpayer no longer has any right to administrative or judicial review of the debt. However, the secrecy statutes in the Tax Law prevent the Commissioner from sharing debtor/taxpayer information with the Comptroller when warrants have not been filed. This legislation is needed so the Commissioner has authorization to share taxpayer infor- mation with the Comptroller regarding unwarranted fixed and final debts so the debts can be satisfied, in whole or in part, with unclaimed funds. Enacting this legislation might allow some individuals to avoid having a tax warrant filed against them. Satisfying unwarranted fixed and final debts from unclaimed funds could reduce the number of warrants filed and enable some taxpayers to resolve their unwarranted fixed and final debt after it is reduced by unclaimed funds utilization. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds revenue by $3 million annual- ly beginning FY 2019. EFFECTIVE DATE: This bill would take effect immediately. Part L - Allow the Department of Taxation and Finance Access to Depend- ent and Child Care Data from Other State Agencies. PURPOSE: This bill would amend the Social Services Law to allow the Office of Children and Family Services (OCFS) to share day care subsidy informa- tion with the Department of Tax and Finance (DTF) so that DTF can verify child and dependent care credit claims. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The New York State and New York City child and dependent care credits are refundable income tax credits that provide critical support to parents and other caregivers who are working or looking for work. The credit amounts are determined based upon the claimant's income and the claimant's qualified care expenses. The Office of the State Comptroller has recommended that DTF utilize day care subsidy data maintained by OCFS as it reviews child and dependent care credit claims for auditing purposes, but the Social Services Law does not authorize OCFS to share this information with DTF. This bill would amend the Social Services Law to permit that sharing, which would help DTF to verify refund claims by subsidy recipients and would help avoid the payment of ineligible claims. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds revenue by $5 million annual- ly beginning in FY 2020. EFFECTIVE DATE: The bill takes effect immediately. Part M - Close the carried interest loophole. PURPOSE: This bill would close the carried interest tax loophole at the State level by taxing the carried interest income of hedge fund and private equity investors as ordinary earned income. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The carried interest tax loophole allows hedge fund managers and private equity investors to have favorable federal tax treatment of certain investment management services compensation by treating that income as capital gains, rather than as ordinary income. Further, when these fees are characterized as capital gains, New York cannot tax that income when earned in New York by a non-resident. This bill would close the loophole, for New York State purposes, by requiring this type of income to be treated as income earned from a trade or business. In addition, the income that is treated as income from a trade or business would be subject to a special 17 percent carried interest fairness fee. The fee would remain in effect until federal law is amended to treat the provision of investment management services for federal tax purposes substantially the same as under this legislation. This bill would take effect only if Connecticut, New Jersey, Massachusetts and Pennsylvania enact legislation having substan- tially the same effect as this bill. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it represents the first step necessary to achieve tax treatment parity between carried interest and other forms of earned income. EFFECTIVE DATE: This bill would take effect when the states of Connecticut, New Jersey, Massachusetts and Pennsylvania enact legislation having substantially the same effect as this act, and the enactments by such states have taken effect in each state and shall apply for taxable years beginning on or after such date; provided, however, if such enactments are already in effect in the states of Connecticut, New Jersey, Massachusetts and Pennsylvania, this act shall take effect immediately and shall apply for taxable years beginning on or after January 1, 2018; provided the Commissioner of Taxation and Finance shall notify the Legislative Bill Drafting Commission upon enactment of such legislation by the states of Connecticut, New Jersey, Massachusetts and Pennyslvania in order that such commission may maintain an accurate and timely effective database of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the Legislative Law and section 70-b of the Public Officers Law. Part N - DTF Right to Appeal DTA Tribunal Decisions. PURPOSE: This bill would provide the Department of Taxation and Finance (DTF) with the right to appeal adverse Tax Appeals Tribunal decisions. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The Division of Tax Appeals is an independent body with the ability to cancel assessments, invalidate regulations, and reverse prior decisions of the State tax commission. While a taxpayer may seek judicial review of an adverse decision of the Tax Appeals Tribunal, the Commissioner of DTF is not afforded the same opportunity. As a result, the Commissioner is precluded from appealing adverse decisions that DTF believes are contrary to the interests of the people of this State. Judicial review presents the quickest and most efficient method of reaching finality: in the absence of judicial review, the Department's only recourse is to seek legislation to reverse significant Tribunal decisions with which the Department disagreed as a matter of law. The most recent example of such corrective legislation is Part Q of the FY 2018 Enacted Budget (L. 2017, ch. 59.) Moreover, providing DTF with the right to appeal is consistent with the majority of states with similar independent administrative tax bodies, which provide the tax administra- tor with the right to appeal the administrative body's decision to a court. Finally, there are instances where judicial review is the only avenue for seeking reversal of an adverse opinion. In September 2017, the Tax Appeals Tribunal issued two decisions dealing with the franchise tax on insurance companies that cannot be reversed legislatively. For the first time, the Tribunal issued a decision on international law and voided Department assessments on alien insurers, concluding that the assess- ments violated the non-discrimination clause of the tax treaty between the United States and Germany. The Tax Appeals Tribunal's interpretation and application of Article 24, the non-discrimination clause of the United States-Germany 1989 Tax Treaty affects the State's tax treatment of non-resident alien insurance corporations for purposes of Article 33 and, for years beginning on or after January 1, 2015, nonresident alien general business, banking and financial services corporations under Article 9-A. These decisions may also affect the State's taxation of non-resident alien individuals. Because the Legislature does not have the authority to pass a law that would overrule the Tribunal's decision, the Department is currently powerless to have this significant issue of international law reviewed by a Court. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect immediately and apply to decisions and orders of the Tax Appeals Tribunal issued on or after that date. Part O - Clarify New York Residency Requirements for Tax Purposes. PURPOSE: This bill would codify the Department of Taxation and Finance's long standing policy of counting all days an individual is present in New York to determine statutory residency for personal income tax purposes regardless of whether or not an individual is also a part year domicili- ary. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would eliminate confusion that exists among some tax law prac- tioners following a non-precedential determination by an Administrative Law Judge in the Division of Tax Appeals that interpreted the statutory definition of "resident" in Article 22 of the Tax Law to preclude count- ing the portion of the year an individual is domiciled in the State when determining whether the individual meets the "more than 183 days" requirement to be a "statutory resident." Such an interpretation is contrary to the Department's long standing construction of the statutory resident provision. This misinterpretation can lead to absurd results, including the inability to tax those indi- viduals who, "for all intents and purposes," are residents of the state throughout the taxable year. This bill would explicitly provide that the days a person is present in New York State would count toward the "more than183 days" needed to tax such a person as a statutory resident of the State, regardless of wheth- er or not he or she was actually domiciled in New York at some time during the same year. The bill also would make corresponding changes to the New York City personal income tax. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase personal income tax receipts by $3 million annually beginning in FY 2021 EFFECTIVE DATE: This bill would take effect immediately and shall apply to all taxable years for which the statute of limitations for seeking a refund or assessing additional tax is still open. Part P - Maintain 2017 Empire State Child Tax Credit Benefits. PURPOSE: This bill would maintain the amount of the Empire State Child Tax Credit at the same level that existed in 2017, prior to Federal tax reform. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Federal tax reform legislation, enacted as Public Law 115-97, increased and enhanced the Federal child tax credit. Because the amount of the Empire State Child Tax Credit is a percentage of the Federal tax credit, the increase in the Federal tax credit and the broadening of the income thresholds in the credit calculation will necessarily flow through to the Empire State Child Tax Credit. This will result in more claims being filed and higher State credit claim amounts. This bill would tie the New York credit to the 2017 Federal law before reform, thereby avoiding any unintentional revenue loss to the State while preserving the benefits that New York taxpayers currently enjoy. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would maintain the 2017 Credit benefit levels. Fail- ure to enact this bill would reduce All Funds revenue by $503 million annually beginning FY 2020. EFFECTIVE DATE: This bill would take effect immediately and apply to taxable years beginning on or after January 1, 2018. Part Q - Extend the Hire a Vet Tax Credit for two years. PURPOSE: This bill would extend the Hire a Vet Tax Credit for an additional two years, through tax year 2020. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would extend by two years the tax credits provided for hiring veterans under Tax Law §§ 210-B(29) (Franchise Tax on Corporations), 606(a-2) (Personal Income Tax), and 1511(g-1) (Franchise Tax on Insur- ance Corporations). Currently, the Hire a Vet Tax Credit is available for taxable years beginning on or after January 1, 2015 and before January 1, 2019. The credit is available to qualified taxpayers for the hiring of qualified veterans who commenced employment on or after January 1, 2014 and before January 1, 2018. This bill would extend this credit for an additional two years beginning on or after January 1, 2019, and before January 1, 2021, for employment commenced before January 1, 2020. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would decrease All Funds revenue by $37 million in each of FY 2021 and FY 2022. EFFECTIVE DATE: This bill takes effect immediately. Part R - Enhance the New York Youth Jobs Program. PURPOSE: This bill would enhance the New York Youth Jobs Program by providing a 50% increase in the amount of tax credits available for employers who hire and employ at-risk youth on a full-time or part-time basis. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Employers in New York State that hire and employ at-risk youth on a full-time or part-time basis are eligible for the Youth Jobs Program Tax Credit. Eligible employers must submit an application to the Department of Labor. If the Department approves, the employers are classified as "qualified employers" and will receive a certificate indicating the maximum amount of credit for which they are eligible. To ensure the continued success of this program, this bill would provide a 50% increase in the credit amounts available for qualified employers beginning on or after January 1, 2018. Further, beginning on or after January 1, 2019, qualified employers would be required to comply with enhanced reporting requirements. The Department of Labor would also be required to issue a final certificate of tax credit to qualified employ- ers detailing the actual amount of credit allowed based on hiring and retention records. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it will enhance the program and provide transparency on program effectiveness. EFFECTIVE DATE: This bill would take effect immediately, provided however that (i) section one of this bill would apply to tax years beginning on or after January 1, 2018; (ii) sections four and seven of this bill would apply to tax years beginning on or after January 1, 2018 and before January 1, 2019; and (iii) sections two, three, five, six, eight, and nine of this bill would take effect on January 1, 2019 and would apply to tax years beginning on or after January 1, 2019. Part S - Defer business related tax-credit claims. PURPOSE: This bill would require taxpayers to defer the use and refund of certain business tax related credits for three years. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Beginning on or before January 1, 2018 and before January 1, 2021, this bill would require taxpayers to defer the use and refund of certain tax credits if such credits exceed $2 million in the aggregate. Under this bill, taxpayers would calculate the amount of each credit they would otherwise use and refund absent this provision, and if the total for the specified credits sums to more than $2 million, taxpayers must reduce each credit proportionally. Taxpayers with $2 million or less in credit would not be impacted by this provision. The credits deferred consist generally of business tax credits, with a few specified credits, including the film production, post production and commercial production credits, the New York Youth Jobs credit and the Hire-a-Vet tax credit, excluded from the deferral requirement. Under this bill, only credit that would otherwise have been used or refunded would be deferred; and credits earned but not used or refunded because of statutory limitations or insufficient liability are subject to their normal rules. Credit amounts deferred would be accumulated in one of two new credits - temporary deferral nonrefundable payout credit and temporary deferral refundable payout credit. Taxpayers could begin to use the nonrefundable payout credit on their 2021 tax returns, and any amounts not used could be carried forward indefinitely. Taxpayers would be able to use and refund 50 percent of the refundable payout credit on their 2021 tax return, use and refund 75 percent of the remaining credit on their 2022 tax return, and the entire remainder on their 2023 tax return. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it will increase state revenue by $82 million in FY 2019, $278 million in FY 2020, $199 million in FY 2021, $164 million in FY 2022 and reduce state revenue by $298 million in FY 2023, $173 million in FY 2024 and $49 million in FY 2025. EFFECTIVE DATE: This bill would take effect immediately. Part T Amend the refund and joint liability provisions of the real estate transfer tax. PURPOSE: This bill would extend the statute of limitations for a taxpayer to file an application for a refund of real estate transfer tax (RETT) if the taxpayer claims that the RETT was paid erroneously. The bill would also establish joint liability between the grantor and grantee for payment of the additional tax imposed under the mansion tax component of the RETT. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would amend Tax Law § 1412(a) to extend the statute of limita- tions from two years to three years for filing an application for a refund by a taxpayer who claims that the RETT was paid erroneously. Currently, Article 31 provides a three-year window for the Department of Taxation and Finance (Department) to assess RETT, but a grantor or gran- tee claiming to have erroneously paid RETT must file an application for a refund within two years from the date the tax was paid. For most other taxes, the time allowed for requesting a refund equals the time permit- ted for the Department to assess additional tax. This amendment would promote fairness to taxpayers. This bill also would amend Tax Law § 1402-a(b) to establish joint liability between the grantor and grantee for payment of the mansion tax. Currently, the liability for the mansion tax is imposed on the grantee; the grantor is liable for the payment of the tax only if the grantee is exempt. Under the basic RETT, the grantor is primarily liable for the tax, but the grantee is jointly and severally liable if the grantor fails to pay. The mansion tax does not include that joint and several liability provision. This bill would make the basic RETT and the mansion tax consistent with one another: under both taxes, the grantor and grantee would be jointly and severally liable for the tax when the party who is liable initially for payment of the tax fails to pay the tax. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because the joint liability provision would increase All Funds receipts by $1 million annually beginning in FY 2019, and the extended refund statute of limitations would decrease All Funds receipts by $1 million annually, beginning in FY 2019. EFFECTIVE DATE: This bill would take effect immediately; provided, however, section two of the bill would apply to conveyances occurring on or after the fifteenth day after the bill becomes a law. Part U Improve cigar tax enforcement. PURPOSE: This bill would amend the definition of "wholesale price" on tobacco products such that it would now be defined as the invoice price for which the product is sold to a distributor. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Tax Law § 471-b (a) imposes a tax on cigars at a rate of 75% of the wholesale price. Tax Law § 470 defines wholesale price, but provides opportunities for distributors to manipulate the wholesale price and lower the tax due. The burden then shifts to the Department to dispute a distributor's claimed wholesale price. Over the last several years, New York State has refunded millions of dollars to tobacco distributors who have claimed a lower wholesale cost. These claims are based on intercompany transactions, which often occur outside of the United States, that are recorded internally at a signif- icantly lower cost than distributors within New York State must pay for the products received. These pricing schemes are nearly impossible to verify, and do not actually reflect the sales pricing in the tobacco marketplace. The refunds of this tax go exclusively to the tobacco industry and are not passed through to the consumer. In addition to the revenue loss from refunds paid, manipulation of the wholesale price between related entities has effectively reduced the tobacco tax rate. This bill would stem that loss and return the effective tax rate on other tobacco products to 75%. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds receipts by $12 million in FY 2019 and $23 million annually thereafter. EFFECTIVE DATE: This bill would take effect on September 1, 2018. Part V - Discontinue the energy services sales tax exemption. PURPOSE: This bill would repeal the sales tax exemption for gas and electric service associated with gas and electricity purchased from an energy service company (ESCO). SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Tax Law §§ 1101(b) and 1105(b) impose sales tax on the transportation, transmission, or delivery of gas or electricity. Tax Law § 1105-C reduces the rate of tax on the transportation, transmission or delivery of gas and electricity to zero where it is sold separately from the commodity. This provision was enacted in the late 1990s to provide an incentive for customers to purchase gas and electricity from third-party energy service companies, often referred to as ESCOs. As a result, a business purchasing its electricity from a local utility company will pay sales tax on their total electric or gas bill, while another busi- ness purchasing gas or electricity from an ESCO will pay sales tax only on the gas or electricity, and not on the transportation, transmission or delivery. Today, this exemption is no longer needed. Competition among ESCOs is well developed as New York utilities offer customers the option of *chasing directly from the company as well as multiple ESCO gas and electricity suppliers. This bill would repeal Tax Law § 1105-C and elim- inate unequal treatment among utility customers. As a result, sales tax would apply to charges for transporting, transmitting, or delivering taxable gas or electricity, whether the commodity is purchased from an ESCO or a utility company. The bill would also clarify that transporta- tion, transmission and delivery charges are taxable even if sold sepa- rately from gas or electricity. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds receipts by $96 million in FY 2019 and $128 million annually thereafter. EFFECTIVE DATE: This bill would take effect immediately and would apply to sales made and services rendered on and after June 1, 2018, whether or not under a prior contract. Part W - Convert the veterinary sales tax credit to an exemption. PURPOSE: This bill would convert the existing sales tax credit or refund for certain drugs or medicine used by veterinarians or farmers for livestock or poultry used in farm production to an upfront exemption. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Drugs and medicine purchased by a veterinarian for treating livestock and poultry used in farm production are currently taxable at the time of purchase. Veterinarians then apply for a credit/refund of the sales tax paid on qualifying purchases of certain drugs and medicine. This bill would repeal the existing refund/credit and create an exemption for drugs and medicine purchased or used by veterinarians for such purposes. The bill would also allow farmers to purchase such drugs exempt from sales tax for livestock and poultry used in farm production. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget. EFFECTIVE DATE: This bill would take effect on June 1, 2018, and apply to sales made and uses on or after that date. Part X- Provide responsible person sales tax relief for minority LLC owners. PURPOSE: This bill would provide relief from responsible persons liability to certain minority members of limited partnerships or limited liability corporations (LLCs). This bill would codify a Department of Taxation and Finance (DTF) policy described in TSB-M-11(17)S. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The Tax Law currently imposes personal responsibility for payment of sales and use taxes on certain owners, officers, directors, employees, managers, partners, or members (responsible persons) of businesses that have outstanding sales tax liabilities. A responsible person is jointly and severally liable for the tax owed, along with the business entity or any of the business's other responsible persons. However, the Tax Law also imposes a strict liability on all members of LLCs and limited part- ners of limited partnerships. Therefore, a member of an LLC or a limit- ed partner of a limited partnership may be held personally liable for the entire tax liability of the limited partnership or LLC, even if the person has no involvement with the day-to-day operations of the business or any duty to act for the business in the collection and payment of sales tax. This per se liability can result in harsh consequences for members that have no direct involvement with the business's operations. This bill would provide relief from this per se personal liability for certain limited partners and members that meet the eligibility require- ments specified below. Under this bill, limited partners of a limited partnership and members of an LLC would be eligible for relief if they demonstrate that: (i) they were not under a duty to act for the limited partnership or LLC in complying with the requirements of the sales tax; and (ii) their owner- ship interest and the percentage of their distributive share of the profits and losses of the limited partnership or LLC are each less than 50%. A limited partner or member must submit an application for relief to the Commissioner. If approved, a limited partner or member will be liable only for their pro-rata share of the original liability of the business, based on the greater of the limited partner's or member's ownership percentage or their distributive share of the business' profits and losses. Such amount would include prorated interest on the business' original liability up to the date of payment of the limited partner or member, but not penalty. The Commissioner would also be empowered to deny the application of any limited partner or member who had acted for the limited partnership or limited liability company with regard to sales tax compliance, who has been convicted of a tax crime or who has a past-due tax liability. Finally, the bill also makes a technical conforming amendment to the definition of "responsible person" in Tax Law § 1131(1). BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would codify existing DTF practice. EFFECTIVE DATE: This bill would take effect immediately. Part Y - Increase the vending machine sales tax exemption. PURPOSE: This bill would amend the exemption from sales and use taxes for certain food and drink purchased from a vending machine. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Currently, purchases of certain food and drink costing $1.50 or less from any vending machine are exempt from sales and use tax. This bill would maintain this exemption for food and drink purchases from vending machines that accept only coin or currency. It would also exempt food and drink purchases of $2.00 or less from vending machines that are capable of accepting payment in a form other than coin or currency ("cashless" purchases), regardless of whether those vending machines also accepts coin or currency. Additionally, this bill corrects an anomaly so that bottled water sold from a vending machine is also covered by this exemption. This bill would not affect the tax on food and drink sold by a restaurant, tavern, or similar establishment under Tax Law § 1105(d). The exemption for food and drink purchased from any type of vending machine would expire on May 31, 2020. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase State sales tax receipts by $2 million in FY 2021 and $3 million annually thereafter. Local sales tax receipts would be increased by a commensurate amount. EFFECTIVE DATE: This bill would take effect June 1, 2018, and apply to sales made and uses occurring on and after that date. Part Z - Amend the local sales tax statute for technical changes. PURPOSE: This bill would make technical corrections to Part A of Chapter 61 of the Laws of 2017 related to the additional rates of sales and use tax for Genesee, Monroe, Onondaga and Orange counties. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The authorization for the additional rates of sales and use taxes for counties that currently impose them was extended until November 30, 2020 by Chapter 61 of the Laws of 2017. The revenue distribution provisions for those additional rates were also extended until November 30, 2020, but the revenue distribution provisions for Genesee, Monroe, Onondaga, and Orange Counties were inadvertently extended until November 30, 2019. This bill would extend the revenue distribution provisions for those four counties until November 30, 2020. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it makes the revenue distribution provisions related to additional rates of sales and use taxes consistent for all counties. EFFECTIVE DATE: This bill would take effect on the same date as Chapter 61 of the Laws of 2017; provided however, section 1 of this act would be deemed to be in full force and effect on the same day as subpart R of Part A of Chap- ter 61 of the Laws of 2017; section 2 of this act would be deemed to be in full force and effect on the same day as subpart Z of Part A of Chap- ter 61 of the Laws of 2017; section 3 of this act would be deemed to be in full force and effect on the same day as subpart EE of Part A of Chapter 61 of the Laws of 2017; and section 4 of this act would be deemed to be in full force and effect on the same day as subpart GG of Part A of Chapter 61 of the Laws of 2017. Part AA - Impose an Internet fairness conformity tax. PURPOSE: This bill would amend the Tax Law to impose an Internet fairness conformity tax to collect sales and use tax on taxable sales of tangible personal property that they facilitate. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would impose an internet fairness conformity tax by requiring marketplace providers to collect sales tax on taxable sales of tangible personal property by third-party vendors, facilitated by a marketplace that has facilitated over $100 million in sales in each year since 2016. The bill would not expand the rules concerning sales tax nexus. The bill would also require sellers and marketplaces that are not collecting New York sales taxes to file information returns regarding sales of tangible personal property that were delivered in New York and to provide notices to purchasers that tax may be due on those purchases. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds receipts by $80 million in FY 2019 and $159 million annually thereafter. EFFECTIVE DATE: This bill would take effect September 1, 2018 and would apply to sales made or uses occurring after that date. Part BB - Impose a health tax on vapor products. PURPOSE: This bill would impose a health tax on vapor products for use with elec- tronic cigarettes and similar devices. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Currently, vapor products are not subject to the tax that is imposed on tobacco products pursuant to Article 20 of the Tax Law. This bill would expand Article 20 to impose a tax, at the rate of 10 cents per fluid milliliter, on the sale (or use, if not previously taxed) on vapor products, defined as the liquid or gel commonly used in e-cigarettes and similar devices, regardless of whether or not the device contains nico- tine. To facilitate administration and collection of the tax, whole- salers and distributors would be required to list the amount of vapor products sold, in milliliters, on any invoices issued to their custom- ers. This bill would also add registration and record keeping requirements, and impose civil and criminal penalties for unlawful possession of a vapor product equivalent to those in existing law for other tobacco products. Enactment of this bill would equalize the tax treatment of tobacco products and the equivalent products used in e-cigarettes. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds revenue by $3 million in 2019 and $5 million annually thereafter. EFFECTIVE DATE: This bill would take effect on the 180th day after it becomes a law and apply to vapor products that first become subject to taxation under Article 20 of the Tax Law on or after that date. Part CC - Establish an opioid epidemic surcharge. PURPOSE: This bill would establish an opioid epidemic surcharge, thereby imposing a surcharge on the first sale of all opioids in the State to fund an opioid prevention, treatment and recovery account. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The use of opioids throughout the State has drastically risen in recent years. As a result, opioid addiction and overdosing has risen to epidem- ic levels. This bill would enact a surcharge on opioid sales to disin- centivize the use of opioids by placing the share of societal costs from opioid use on the manufacturers, producers and distributors who finan- cially gain from the use of these drugs. The bill would establish an opioid epidemic surcharge, and thereby impose a surcharge in the amount of two cents per morphine milligram equivalent sold, on the first sale of any opioid in the State. Sales made directly to chemical abuse or dependence facilities, as defined in Article 32 of the Mental Hygiene Law, would be exempt from this surcharge. The responsibility to pay this surcharge would be on the establishment that makes such first sale. The first receipts from the surcharge would be due by January 20, 2019, and would cover the period from July 1, 2018 through December 31, 2018. Receipts would be collected monthly thereafter. This bill would also establish an opioid prevention, treatment and recovery account in the custody of the state comptroller. Revenue gener- ated from the surcharge imposed by this bill and revenue from litigation or enforcement actions initiated against opioid pharmaceutical manufac- turers, distributors and wholesalers would be directed to this account for the purpose of providing support for the provision of opioid treat- ment, recovery and prevention and education services. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds receipts by $127 million in FY 2019, $171 million in FY 2020, $154 million in FY 2021, $138 million in FY 2022, and $125 million in FY 2023. EFFECTIVE DATE: This bill would take effect on July 1, 2018. Part DD - Impose a healthcare insurance windfall profit fee. PURPOSE: This bill would impose a healthcare insurance windfall profit fee in the amount of 14% on the net under writing gain from the sale of health insurance in the State. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would impose a healthcare insurance windfall profit fee in the amount of 14% on the net underwriting gain from the sale of health insurance on risks in New York. The federal government has given a 14 percent tax cut to corporations to be paid for by drastic cuts in funding for important public programs that save lives. Specifically, while the federal corporate tax rate applicable to for-profit health insurers is being reduced from 35% to 21%, the federal funds provided to New York State to finance public health initiatives are being drastically reduced with additional cuts threatened for future years. This bill would help close the State budget gap due to the reduction in federal funding without imposing an unexpected burden on the insurers whose health insurance rates for the 2018 calendar year were determined before the Federal corporate tax rate was reduced in December 2017. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase All Funds revenue by $140 million annu- ally beginning in FY 2019. EFFECTIVE DATE: This bill would take effect immediately and apply to all tax periods beginning after December 31, 2017. Part EE - Amend racing operation provisions. PURPOSE: This bill would amend the amount of reserves kept by the New York Racing Association (NYRA), allow nighttime racing (under certain circumstances) and create an advisory committee on equine drug testing and research. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Section 1 of the bill would amend section 208 of the Racing, Pari-Mutuel Wagering and Breeding Law relating to calculating allowable reserves by increasing the number of days of operating expenses from forty-five to ninety days. Section 2 of the bill would amend section 203 of the Racing, Pari-Mutuel Wagering and Breeding Law to allow, under certain limited circumstances, NYRA to conduct racing after sunset. Section 3 of the bill would create an advisory committee to make recom- mendations on the structure, operations and funding of equine drug test- ing and research. Recommendations would be submitted to the Governor and the Legislature by December 1, 2018. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would add flexibility to current racing operations. EFFECTIVE DATE: This bill would take effect immediately. Part FF - Allow breeding funds to be used for equine aftercare. PURPOSE: This bill would allow flexibility so monies from the New York State Thoroughbred Breeding and Development Fund and the Agriculture and New York State Horse Breeding Development Fund may be used for aftercare for retired horses. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: The State has shown a strong commitment to the issue of responsive aftercare for retired horses. As part of this effort, this bill would add needed flexibility to the existing allocation of funds so monies could be used for retired standardbred and thoroughbred horse aftercare. Section 1 would amend Section 254 of the Racing, Pari-Mutuel Wagering and Breeding Law to allow monies from the New York State Thoroughbred Breeding and Development Fund to be used for aftercare for retired hors- es. Section 2 would amend Section 332 of the Racing, Pari-Mutuel Wagering and Breeding Law to allow monies from the Agriculture and New York State Horse Breeding Development Fund to be used for aftercare for retired horses. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would add flexibility to the allocation of monies for retired horse aftercare. There is no impact on State revenues. EFFECTIVE DATE: This bill would take effect immediately. Part GG - Extend certain tax rates and certain simulcasting provisions for one year. PURPOSE: This bill would extend for one additional year various provisions of the Racing, PariMutuel Wagering and Breeding (Racing) Law. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: Section 1 would amend Racing, Pari-Mutuel Wagering and Breeding Law (PML) § 1003(a) to extend the June 30, 2018 expiration date for in-home simulcasting. Section 2 would amend PML § 1007(3)(d) to extend the current percentage of total pools allocated to purses that a track located in Westchester County receives from a franchised corporation, which currently is sched- uled to expire on June 30, 2018. Section 3 would amend the opening paragraph of PML § 1014, to continue the provisions allowing simulcasting of out-of-state thoroughbred races on any day the Saratoga thoroughbred track is operating, which currently are scheduled to expire on June 30, 2018. Section 4 would amend PML § 1015(1) to extend the provisions governing the simulcasting of races conducted at out-of-state harness tracks, which currently are scheduled to expire on June 30, 2018. Section 5 would amend the opening paragraph of PML § 1016(1) to continue the provisions governing the simulcasting of out-of-state thoroughbred races on any day the Saratoga thoroughbred track is closed, which currently are scheduled to expire on June 30, 2018. Section 6 would amend the opening paragraph of PML § 1018 to extend the current distribution of revenue from out-of-state simulcasting during the Saratoga meet, which expired on September 8, 2017. Section 7 would amend § 32 of chapter 281 of the Laws of 1994 to extend the current amount of off-track betting wagers on New York Racing Asso- ciation, Inc. (NYRA) pools dedicated to purse enhancement, which currently are scheduled to expire on June 30, 2018. Section 8 would amend § 54 of chapter 346 of the Laws of 1990 to contin- ue binding arbitration for disagreements. These provisions currently are scheduled to expire on June 30, 2018. Section 9 would amend PML § 238(1)(a) to continue the current distrib- ution of revenue from on-track wagering on NYRA races, which currently is scheduled to expire on December 31, 2018. Extending these provisions would maintain the pari-mutuel betting and simulcasting structure that is currently in place in New York State. The provisions extended by sections one through six of this bill were first enacted in 1994 and section seven was enacted in 1990. These provisions were extended numerous times since their original enactment, most recently in FY 2018. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it maintains the current pari-mutuel betting structure in New York State. EFFECTIVE DATE: This bill would take effect immediately. Part HH - Eliminate the Video Lottery Gaming (VLG) hold harmless trans- fer provision. PURPOSE: This bill would eliminate the VLG hold harmless transfer provision. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would amend State Finance Law § 97-nnnn to strike the hold harmless language. The intent of the hold harmless language is to provide a transparent measure of the impact of commercial casinos on VLG revenue. Currently, a monthly transfer from the casino education account to the VLG educa- tion account is required if monthly VLG revenue falls below revenue from the corresponding month in the "base year" of October 2015 to September 2016. Annual revenue during the base year was $958.2 million. As the change in VLG revenue is based on factors in addition to commercial casinos (including the opening of a new VLT facility, the change in the number of VLT machines at a facility and the number of reported weeks in a month), the transfer fails to achieve its purpose. Additionally, both VLG and casino revenue are ultimately directed to education. For these reasons, this bill would eliminate this unnecessary and complicated transfer. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would amend the current distribution of VLG and casino education revenues. EFFECTIVE DATE: This bill would take effect April 1, 2018. Part LL - Simplify Video Lottery Gaming (VLG) rate and additional commission provisions. PURPOSE: This bill would simplify the current Video Lottery Gaming (VLG) distrib- ution structure and amend the additional commission provisions to be aligned with the intent of the law. SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT: This bill would repeal and replace subdivision (ii) in § 97-nnnn of the Tax Law. Subsections (A) through (D) would simplify the VLG rate struc- ture; (E) would amend the current additional commission structure; (F) would simplify the capital awards distribution; and (G) would include the free play allowance language. Currently, VLG revenues are distributed for gaming administration, oper- ator commissions, racing support payments, marketing allowances, and capital awards. The remaining amount is directed to education. The distribution formulas change based on certain net machine income (NMI) levels (which vary by facility). Under this bill, the Video Lottery Terminal (VLT) rates would no longer be based on NMI levels, but instead on four categories: VLTs impacted by gaming facilities, those impacted by Native American casinos, those facilities or machines run by OTBs and the larger VLTs. Under current law, there is a separate distribution for marketing allow- ances and capital award monies. Marketing allowance is set at either eight or ten percent of NMI. Most facilities receive four percent of NMI (capped at $2.5 million) for capital awards. Under this bill, the marketing allowance and capital awards would now be included as part of the operator's commission. The amount spent on marketing would shift from a Gaming Commission directive to operator discretion. For capital awards, the Commission would simply approve projects and the reimburse- ment process would be eliminated. Up to $2 million could be used on constructing a turf course at the Finger Lakes racetrack. Three VLG facilities (Finger Lakes, Saratoga and Monticello) are eligi- ble to receive additional commission to be "held harmless" from the impact of a nearby competing casino. Under current law, however, the Finger Lakes and Saratoga facilities will receive an amount in excess of being held harmless. The proposed language would adhere to the intention of the law and keep these facilities held harmless from the casino impact beginning with the State Fiscal Year ending on March 31, 2018. BUDGET IMPLICATIONS: Enactment of this bill is necessary to implement the FY 2019 Executive Budget because it would increase State VLG revenue by $22 million in FY 2019 and $20 million annually thereafter. EFFECTIVE DATE: This bill would take effect April 1, 2018. The provisions of this act shall take effect immediately, provided, however, that the applicable effective date of each part of this act shall be as specifically set forth in the last section of such part.
2017-S7509 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 7509 A. 9509 S E N A T E - A S S E M B L Y January 18, 2018 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to amend the real property tax law, in relation to the annual growth in STAR benefits (Part A); to amend the real property tax law, in relation to making the STAR income verification program mandatory; to amend the tax law, in relation to the calculation of income for basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and to repeal section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); to amend the real property law, in relation to real property transfer reports (Part C); to amend the real property law, in relation to reports of manufac- tured housing park owners (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general munic- ipal law and section 2023-b of the education law, relating thereto (Part E); to amend the real property tax law, in relation to taxable state land (Part F); to amend the real property tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to the effective- ness thereof (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extending the statute of limitations for assessing tax on amended returns (Part H); to amend the tax law, in relation to providing for employee wage reporting consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and beverages sold by
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12674-01-8 S. 7509 2 A. 9509 restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); to amend the social services law, in relation to the disclosure of certain informa- tion relating to a person receiving public assistance to the commis- sioner of taxation and finance (Part L); to amend the tax law, in relation to establishing a conditional tax on carried interest (Part M); to amend the tax law, in relation to permitting the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part N); to amend the tax law and the adminis- trative code of the city of New York, in relation to the definition of resident for tax purposes of the personal income tax (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); to amend the tax law, in relation to the temporary deferral of certain tax credits (Part S); to amend the tax law, in relation to extending the real estate transfer tax statute of limita- tions for refunds from two to three years and providing for consistent joint liability treatment within the real estate transfer tax (Part T); to amend the tax law, in relation to the taxation of cigars (Part U); to amend the tax law and the administrative code of the city of New York, in relation to sales and use taxes on gas and electric service; and repealing section 1105-C of the tax law relating thereto (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); to amend the tax law, in relation to exempting items of food and drink when sold from certain vending machines from the sales and compensating use tax (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes in certain counties, in relation to extend- ing the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); to amend the tax law, in relation to imposing an internet fairness conformity tax and requiring non-collecting sellers to provide specified information to New York purchasers and to the commissioner of taxation and finance (Part AA); to amend the tax law, in relation to imposing a health tax on vapor products (Part BB); to amend the tax law, in relation to the imposition of an opioid epidemic surcharge; and to amend the state finance law, in relation to estab- lishing the opioid prevention, treatment and recovery account (Part CC); to amend the tax law, in relation to establishing a healthcare insurance windfall profit fee (Part DD); to amend the racing, pari-mu- tuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee; and providing for the repeal of certain provisions upon the expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to providing funds for the aftercare of retired horses (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting S. 7509 3 A. 9509 of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); to amend the state finance law, in relation to the commercial gaming revenue fund; and to repeal subdivi- sion 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); and to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; to repeal certain provisions of such law relating thereto; and providing for the repeal of certain provisions upon expiration thereof (Part II) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year. Each component is wholly contained within a Part identified as Parts A through II. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, includ- ing the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. Subparagraph (i) of paragraph (a) of subdivision 2 of section 1306-a of the real property tax law, as amended by section 6 of part N of chapter 58 of the laws of 2011, is amended to read as follows: (i) The tax savings for each parcel receiving the exemption authorized by section four hundred twenty-five of this chapter shall be computed by subtracting the amount actually levied against the parcel from the amount that would have been levied if not for the exemption, provided however, that [beginning with] FOR the two thousand eleven-two thousand twelve THROUGH TWO THOUSAND SEVENTEEN-TWO THOUSAND EIGHTEEN school [year] YEARS, the tax savings applicable to any "portion" (which as used herein shall mean that part of an assessing unit located within a school district) shall not exceed the tax savings applicable to that portion in the prior school year multiplied by one hundred two percent, with the result rounded to the nearest dollar; AND PROVIDED FURTHER THAT BEGIN- NING WITH THE TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN SCHOOL YEAR, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT EXCEED THE TAX SAVINGS FOR THE PRIOR YEAR. The tax savings attributable to the basic and enhanced exemptions shall be calculated separately. It shall be the responsibility of the commissioner to calculate tax savings limitations for purposes of this subdivision. § 2. This act shall take effect immediately. S. 7509 4 A. 9509 PART B Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by section 3 of part E of chapter 83 of the laws of 2002, is amended to read as follows: (ii) The term "income" as used herein shall mean the "adjusted gross income" for federal income tax purposes as reported on the applicant's federal or state income tax return for the applicable income tax year, subject to any subsequent amendments or revisions, reduced by distrib- utions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retire- ment annuity; provided that if no such return was filed for the applica- ble income tax year, "income" shall mean the adjusted gross income that would have been so reported if such a return had been filed. PROVIDED FURTHER, THAT EFFECTIVE WITH EXEMPTION APPLICATIONS FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI- BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX YEAR, THEN IN ORDER FOR THE APPLICATION TO BE CONSIDERED COMPLETE, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPARTMENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPART- MENT, AND SHALL BE SUBJECT TO THE SECRECY PROVISIONS OF THE TAX LAW TO THE SAME EXTENT THAT A PERSONAL INCOME TAX RETURN WOULD BE. THE DEPART- MENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAILABLE FOR THE FILING OF SUCH STATEMENTS. § 2. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by chapter 451 of the laws of 2015, is amended to read as follows: (iv) (A) Effective with applications for the enhanced exemption on final assessment rolls to be completed in two thousand [three] NINETEEN, the application form shall indicate that [the] ALL owners of the proper- ty and any owners' spouses residing on the premises [may authorize the assessor to] MUST have their income eligibility verified annually [ther- eafter] by the [state] department [of taxation and finance, in lieu of furnishing copies of the applicable income tax return or returns with the application. If the owners of the property and any owners' spouses residing on the premises elect to participate in this program, which shall be known as the STAR income verification program, they] AND must furnish their taxpayer identification numbers in order to facilitate matching with records of the department. [Thereafter, their] THE income eligibility OF SUCH PERSONS shall be verified annually by the department, and the assessor shall not request income documentation from them[, unless such department advises the assessor that they do not satisfy the applicable income eligibility requirements, or that it is unable to determine whether they satisfy those requirements]. All APPLI- CANTS FOR THE ENHANCED EXEMPTION AND ALL assessing units shall be required to participate in this program, WHICH SHALL BE KNOWN AS THE STAR INCOME VERIFICATION PROGRAM. (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS- SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS THAT THE S. 7509 5 A. 9509 ENHANCED EXEMPTION SHOULD BE REMOVED OR DENIED WITHOUT BEING REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE TO THE BASIC EXEMPTION HAS ALSO BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS- SIONER EVIDENCE TO THE CONTRARY. IN EITHER CASE, IF THE OWNERS FAIL TO RESPOND TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF, OR IF THEIR RESPONSE DOES NOT SHOW TO THE COMMISSIONER'S SATISFACTION THAT THE PROPERTY IS ELIGIBLE FOR THE EXEMPTION CLAIMED, THE COMMISSION- ER SHALL DIRECT THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL TO EITHER REPLACE THE ENHANCED EXEMPTION WITH A BASIC EXEMPTION, OR TO REMOVE OR DENY THE ENHANCED EXEMPTION WITHOUT REPLACING IT WITH A BASIC EXEMPTION, AS APPROPRIATE. THE COMMISSIONER SHALL FURTHER DIRECT SUCH PERSON TO CORRECT THE ROLL ACCORDINGLY. SUCH A DIRECTIVE SHALL BE BINDING UPON THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL, AND SHALL BE IMPLEMENTED BY SUCH PERSON WITHOUT THE NEED FOR FURTHER DOCUMENTATION OR APPROVAL. (C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NEITHER AN ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER AN OBJECTION TO THE REPLACEMENT OR REMOVAL OR DENIAL OF AN EXEMPTION PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE REVIEWED IN A PROCEEDING TO REVIEW AN ASSESSMENT PURSUANT TO TITLE ONE OR ONE-A OF ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION MAY ONLY BE CHALLENGED BEFORE THE DEPARTMENT. IF A TAXPAYER IS DISSATISFIED WITH THE DEPART- MENT'S FINAL DETERMINATION, THE TAXPAYER MAY APPEAL THAT DETERMINATION TO THE STATE BOARD OF REAL PROPERTY TAX SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE ISSUANCE OF THE DEPARTMENT'S FINAL DETERMI- NATION. IF DISSATISFIED WITH THE STATE BOARD'S DETERMINATION, THE TAXPAYER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO ARTICLE SEVENTY- EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE TAXPAYER SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A COURT ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM OF LEGAL RECOURSE AGAINST THE COMMISSIONER, THE DEPARTMENT, THE STATE BOARD OF REAL PROPERTY TAX SERVICES, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION. § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision 4 of section 425 of the real property tax law are REPEALED. § 4. Paragraphs (b) and (c) of subdivision 5 of section 425 of the real property tax law are REPEALED. § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper- ty tax law, as amended by section 5 of part E of chapter 83 of the laws of 2002 and subparagraph (i) as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (d) Third party notice. (i) A senior citizen eligible for the enhanced exemption may request that a notice be sent to an adult third party. Such request shall be made on a form prescribed by the commissioner and shall be submitted to the assessor of the assessing unit in which the eligible taxpayer resides no later than sixty days before the first taxable status date to which it is to apply. Such form shall provide a section whereby the designated third party shall consent to such desig- nation. Such request shall be effective upon receipt by the assessor. The assessor shall maintain a list of all eligible property owners who have requested notices pursuant to this paragraph AND SHALL FURNISH A COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST. S. 7509 6 A. 9509 (ii) [In the case of a senior citizen who has not elected to partic- ipate in the STAR income verification program, a notice shall be sent to the designated third party at least thirty days prior to each ensuing taxable status date; provided that no such notice need be sent in the first year if the request was not received by the assessor at least sixty days before the applicable taxable status date. Such notice shall read substantially as follows: "On behalf of (identify senior citizen or citizens), you are advised that his, her, or their renewal application for the enhanced STAR exemption must be filed with the assessor no later than (enter date). You are encouraged to remind him, her, or them of that fact, and to offer assistance if needed, although you are under no legal obligation to do so. Your cooperation and assistance are greatly appreciated." (iii) In the case of a senior citizen who has elected to participate in the STAR income verification program, a] A notice shall be sent to the designated third party whenever the assessor OR DEPARTMENT sends a notice to the senior citizen regarding the possible removal of the enhanced STAR exemption. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL BECAUSE THE COMMISSIONER HAS DETERMINED THAT THE INCOME ELIGIBILITY REQUIREMENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY THE DEPARTMENT. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL BECAUSE THE ASSESSOR HAS DETERMINED THAT ANY OTHER ELIGIBILITY REQUIRE- MENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY THE ASSESSOR. Such notice shall read substantially as follows: "On behalf of (identify senior citizen or citizens), you are advised that his, her, or their enhanced STAR exemption is at risk of being removed. You are encouraged to make sure that he, she or they are aware of that fact, and to offer assistance if needed, although you are under no legal obligation to do so. Your cooperation and assistance are great- ly appreciated." [(iv)] (III) The obligation to mail such notices shall cease if the eligible taxpayer cancels the request or ceases to qualify for the enhanced STAR exemption. § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper- ty tax law is REPEALED. § 7. Subdivision 9-b of section 425 of the real property tax law, as added by section 8 of part E of chapter 83 of the laws of 2002 and para- graph (b) as amended by chapter 742 of the laws of 2005 and further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 9-b. Duration of exemption; enhanced exemption. (a) [In the case of persons who have elected to participate in the STAR income verification program, the] THE enhanced exemption, once granted, shall remain in effect until discontinued in the manner provided in this section. (b) [In the case of persons who have not elected to participate in the STAR income verification program, the enhanced exemption shall apply for a term of one year. To continue receiving such enhanced exemption, a renewal application must be filed annually with the assessor on or before the applicable taxable status date on a form prescribed by the commissioner. Provided, however, that if a renewal application is not so filed, the assessor shall discontinue the enhanced exemption but shall grant the basic exemption, subject to the provisions of subdivision eleven of this section. (c) Whether or not the recipients of an enhanced STAR exemption have elected to participate in the STAR income verification program, the] THE assessor [may review their] SHALL REVIEW THE continued compliance OF S. 7509 7 A. 9509 RECIPIENTS OF THE ENHANCED EXEMPTION with the applicable ownership and residency requirements to the same extent as if they were receiving a basic STAR exemption. [(d) Notwithstanding the foregoing provisions of this subdivision, the enhanced exemption shall be continued without a renewal application as long as the property continues to be eligible for the senior citizens exemption authorized by section four hundred sixty-seven of this title.] § 8. Section 425 of the real property tax law is amended by adding a new subdivision 14-a to read as follows: 14-A. IMPLEMENTATION OF CERTAIN ELIGIBILITY DETERMINATIONS. WHEN A TAXPAYER'S ELIGIBILITY FOR EXEMPTION UNDER THIS SECTION FOR A SCHOOL YEAR IS AFFECTED BY A DETERMINATION MADE IN ACCORDANCE WITH SUBPARAGRAPH (IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION OR PARAGRAPH (C) OR (D) OF SUBDIVISION FOURTEEN OF THIS SECTION, AND THE DETERMI- NATION IS MADE AFTER THE SCHOOL DISTRICT TAXES FOR THAT SCHOOL YEAR HAVE BEEN LEVIED, THE PROVISIONS OF THIS SUBDIVISION SHALL BE APPLICABLE. (A) IF THE DETERMINATION RESTORES OR INCREASES THE TAXPAYER'S EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO REMIT THE EXCESS DIRECTLY TO THE PROPERTY OWNER UPON RECEIVING CONFIRMATION THAT THE TAXPAYER'S ORIGINAL SCHOOL TAX BILL HAS BEEN PAID IN FULL. THE AMOUNTS PAYABLE BY THE COMMISSIONER UNDER THIS PARAGRAPH SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVI- SION FOURTEEN OF THIS SECTION. WHEN THE COMMISSIONER IMPLEMENTS THE DETERMINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO REFUND SHALL BE ISSUED BY THE SCHOOL AUTHORITIES TO THE PROPERTY OWNER OR HIS OR HER AGENT FOR THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID FOR THAT SCHOOL YEAR. (B) IF THE DETERMINATION REMOVES, DENIES OR DECREASES THE TAXPAYER'S EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO COLLECT THE SHORTFALL DIRECTLY FROM THE OWNERS OF THE PROPERTY, TOGETHER WITH INTEREST, BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION, LEVY, AND LIEN OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO OF THE TAX LAW, AND ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN THE PROVISIONS OF SUCH ARTICLE. WHEN THE COMMISSIONER IMPLEMENTS THE DETER- MINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT SCHOOL YEAR. § 9. Section 171-o of the tax law is REPEALED. § 10. Subparagraph (B) of paragraph 1 of subsection (eee) of section 606 of the tax law, as amended by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (B) "Affiliated income" shall mean for purposes of the basic STAR credit, the combined income of all of the owners of the parcel who resided primarily thereon as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date, and for purposes of the enhanced STAR credit, the combined income of all of the owners of the parcel as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date; provided that for both purposes the income to be so combined shall be the "adjusted gross income" for the taxable year as reported for federal income tax purposes, or that would be reported as S. 7509 8 A. 9509 adjusted gross income if a federal income tax return were required to be filed, reduced by distributions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retirement annuity. FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI- BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO DID NOT FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE APPLICABLE INCOME TAX YEAR, THEN IN ORDER TO BE ELIGIBLE FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPART- MENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPARTMENT, AND SHALL BE SUBJECT TO THE PROVISIONS OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS ARTICLE TO THE SAME EXTENT THAT A RETURN WOULD BE. THE DEPARTMENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAIL- ABLE FOR THE FILING OF SUCH STATEMENTS. Provided further, that if the qualified taxpayer was an owner of the property during the taxable year but did not own it on December thirty-first of the taxable year, then the determination as to whether the income of an individual should be included in "affiliated income" shall be based upon the ownership and/or residency status of that individual as of the first day of the month during which the qualified taxpayer ceased to be an owner of the proper- ty, rather than as of December thirty-first of the taxable year. § 11. No application for an enhanced exemption on a final assessment roll to be completed in 2019 may be approved if the applicants have not enrolled in the STAR income verification program established by subpara- graph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law as amended by section two of this act, regardless of when the application was filed. The assessor shall notify such appli- cants that participation in that program has become mandatory for all applicants and that their applications cannot be approved unless they enroll therein. The commissioner of taxation and finance shall provide a form for assessors to use, at their option, when making this notifica- tion. § 12. This act shall take effect immediately. PART C Section 1. Subdivision 1-e of section 333 of the real property law is amended by adding two new paragraphs ix and x to read as follows: IX. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A SHARE OR SHARES IN A COOPERATIVE HOUSING CORPORATION, AND SUCH SHARE OR SHARES COME WITH A RIGHT TO OCCUPY A UNIT OR APARTMENT LOCATED IN PROPERTY OWNED BY SUCH CORPORATION, A TRANSFER REPORT MUST BE FILED BY THE TRANS- FEREE OR TRANSFEREES DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE, REGARDLESS OF WHETHER A DEED IS PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER OF TAXA- TION AND FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPECIFY THE NUMBER OF SHARES BEING TRANSFERRED OR ACQUIRED. WHEN A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSUANT TO SECTION FOURTEEN HUNDRED NINE S. 7509 9 A. 9509 OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS PARAGRAPH SHALL BE FILED CONCURRENTLY THEREWITH, BUT IN NO EVENT SHALL THE REPORT REQUIRED BY THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH REAL ESTATE TRANSFER TAX RETURN. X. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A CONTROLLING INTEREST IN AN ENTITY WITH AN INTEREST IN REAL PROPERTY, A TRANSFER REPORT MUST BE FILED BY THE TRANSFEREE OR TRANSFEREES DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE, REGARDLESS OF WHETHER A DEED IS PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPEC- IFY THE PERCENTAGE OF THE OWNERSHIP INTEREST BEING TRANSFERRED OR ACQUIRED. THE TRANSFER REPORT SHALL INDICATE THE PERCENTAGE OF THE TRAN- SACTION THAT IS EXEMPT FROM THE REAL ESTATE TRANSFER TAX AS A MERE CHANGE IN IDENTITY OR FORM OF OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFICIAL OWNERSHIP PURSUANT TO PARAGRAPH SIX OF SUBDIVI- SION (B) OF SECTION FOURTEEN HUNDRED FIVE OF THE TAX LAW, IF ANY. WHEN A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSU- ANT TO SECTION FOURTEEN HUNDRED NINE OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS PARAGRAPH SHALL BE FILED CONCUR- RENTLY THEREWITH, BUT IN NO EVENT SHALL THE REPORT REQUIRED BY THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH REAL ESTATE TRANSFER TAX RETURN. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "CONTROLLING INTEREST" AND "INTEREST IN REAL PROPERTY" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION FOURTEEN HUNDRED ONE OF THE TAX LAW, PROVIDED, HOWEVER, THAT THE TERM "INTEREST IN REAL PROPERTY" SHALL BE LIMITED TO INTERESTS IN REAL PROPERTY SUBJECT TO REAL PROPERTY TAX ASSESSMENT SUCH AS LANDS, BUILDINGS, STRUCTURES, AND OTHER IMPROVEMENTS, AND SHALL NOT INCLUDE DEVELOPMENT RIGHTS, AIR SPACE, OR AIR RIGHTS. § 2. This act shall take effect January 1, 2019 and shall apply to transfers and acquisitions occurring on and after such date. PART D Section 1. Subdivision v of section 233 of the real property law, as amended by chapter 566 of the laws of 1996, is amended to read as follows: v. 1. On and after April first, nineteen hundred eighty-nine, the commissioner of housing and community renewal shall have the power and duty to enforce and ensure compliance with the provisions of this section. However, the commissioner shall not have the power or duty to enforce manufactured home park rules and regulations established under subdivision f of this section. 2. On or before January first, nineteen hundred eighty-nine, each manufactured home park owner or operator shall file a registration statement with the commissioner and shall thereafter file an annual registration statement on or before January first of each succeeding year, UP TO AND INCLUDING TWO THOUSAND EIGHTEEN. THEREAFTER, EACH MANU- FACTURED HOME PARK OWNER OR OPERATOR SHALL FILE QUARTERLY REGISTRATION STATEMENTS WITH THE COMMISSIONER NO LATER THAN TWENTY-ONE DAYS AFTER THE END OF EACH CALENDAR QUARTER. The commissioner, by regulation, shall provide that such registration statement shall include [only] the names of all persons owning an interest in the park, the names of all tenants S. 7509 10 A. 9509 of the park, all services provided by the park owner to the tenants, and SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL PRESCRIBE BY REGULATION AFTER CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE; PROVIDED THAT IN THE CASE OF A REGISTRATION STATEMENT FOR THE FIRST CALENDAR QUARTER OF A YEAR, SUCH STATEMENT SHALL ALSO INCLUDE a copy of all current manufactured home park rules and regulations. THE COMMIS- SIONER SHALL PROVIDE THE COMMISSIONER OF TAXATION AND FINANCE WITH A COMPLETE COPY OF EACH QUARTERLY REPORT NO LATER THAN FIFTEEN DAYS AFTER THE RECEIPT THEREOF. 3. Whenever there shall be a violation of this section, an application may be made by the commissioner of housing and community renewal in the name of the people of the state of New York to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violation; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated this section, an injunction may be issued by such court or justice, enjoining and restraining any further violation and with respect to this subdivision, directing the filing of a registration statement. In any such proceeding, the court may make allowances to the commissioner of housing and community renewal of a sum not exceeding two thousand dollars against each defendant, and direct restitution. When- ever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty of not more than one thousand five hundred dollars for each violation. Such penalty shall be deposited in the manufactured home cooperative fund, created pursuant to section fifty-nine-h of the private housing finance law. In connection with any such proposed application, the commissioner of housing and community renewal is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. The provisions of this subdivision shall not impair the rights granted under subdivision u of this section. § 2. This act shall take effect immediately. PART E Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED. § 1-a. Section 3-d of the general municipal law is REPEALED. § 1-b. Section 2023-b of the education law is REPEALED. § 2. The general municipal law is amended by adding a new section 3-d to read as follows: § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE LOCAL GOVERNMENT UNIT DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER- RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR RESOLUTION WAS SUBSE- QUENTLY REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION- ER OF TAXATION AND FINANCE. 2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF SUCH A CERTIF- ICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX S. 7509 11 A. 9509 OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A DULY ADOPTED LOCAL LAW OR RESOLUTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY LOCAL GOVERNMENT UNIT SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE TIME AND IN THE MANNER AS HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION. § 3. The education law is amended by adding a new section 2023-b to read as follows: § 2023-B. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF AN ELIGIBLE SCHOOL DISTRICT, THE CHIEF EXECUTIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL CERTIFY TO THE STATE COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMIS- SIONER THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER. 2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE SCHOOL DISTRICT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR- IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN- TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS- SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI- VISION. § 4. Subdivision 3 of section 97-rrr of the state finance law, as amended by section 1 of part F of chapter 59 of the laws of 2015, is amended to read as follows: 3. The monies in such fund shall be appropriated for school property tax exemptions granted pursuant to the real property tax law and payable pursuant to section thirty-six hundred nine-e of the education law[, and for payments to the city of New York pursuant to section fifty-four-f of this chapter]. § 5. Section 925-b of the real property tax law, as amended by chapter 161 of the laws of 2006, is amended to read as follows: § 925-b. Extension; certain persons sixty-five years of age or over. Notwithstanding any contrary provision of this chapter, or any general, special or local law, code or charter, the governing body of a municipal corporation other than a county may, by resolution adopted prior to the levy of any taxes on real property located within such municipal corpo- ration, authorize an extension of no more than five business days for the payment of taxes without interest or penalty to any resident of such municipal corporation who has received an exemption pursuant to subdivi- sion four of section four hundred twenty-five or four hundred sixty-sev- en of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located within such municipal corporation. If such an extension is granted, and any taxes are not paid by the final date so provided, those taxes shall S. 7509 12 A. 9509 be subject to the same interest and penalties that would have applied if no extension had been granted. § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop- erty tax law is relettered paragraph (f) and two new paragraphs (d) and (e) are added to read as follows: (D) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY TO ESTABLISH A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH RESPECT TO THE TAXES SO COLLECTED. (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE NOT COLLECTED BY A COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE IS PROVIDED BY THE COUNTY, THEN BEFORE THE CITY, TOWN, VILLAGE OR SCHOOL DISTRICT MAY IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION, IT MUST OBTAIN WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES. § 7. Subparagraph (B) of paragraph 7 of subsection (eee) of section 606 of the tax law, as amended by section 1 of part G of chapter 59 of the laws of 2017, is amended to read as follows: (B) Notwithstanding any provision of law to the contrary, the names and addresses of individuals who have applied for or are receiving the credit authorized by this subsection may be disclosed to assessors [and], county directors of real property tax services, AND MUNICIPAL TAX COLLECTING OFFICERS. In addition, where an agreement is in place between the commissioner and the head of the tax department of another state, such information may be disclosed to such official or his or her desig- nees. Such information shall be considered confidential and shall not be subject to further disclosure pursuant to the freedom of information law or otherwise. § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop- erty tax law, as added by section 1 of part B of chapter 389 of the laws of 1997 and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (g) Computation and certification by commissioner. It shall be the responsibility of the commissioner to compute the exempt amount for each assessing unit in each county in the manner provided herein, and to certify the same to the assessor of each assessing unit and to the coun- ty director of real property tax services of each county. Such certif- ication shall be made at least twenty days before the last date prescribed by law for the filing of the tentative assessment roll. PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON A PRIOR YEAR ASSESSMENT ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION, AND PROVIDED FURTHER, THAT UPON RECEIPT OF SUCH CERTIFICATION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH- ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. § 8. Paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new subparagraph (A) to read as follows: (A) A MARRIED COUPLE MAY NOT RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON MORE THAN ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR, UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY A MARRIED COUPLE S. 7509 13 A. 9509 RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON ONE RESIDENCE WHILE RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE TO LEGAL SEPARATION. § 9. This act shall take effect immediately; provided, however, that section 3-d of the general municipal law, as added by section two of this act, shall expire and be deemed repealed on the same date and in the same manner as section 1 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided that section 2023-b of the education law, as added by section three of this act, shall expire and be deemed repealed on the same date and in the same manner as section 2 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided further that the amendments to paragraph 6 of subsection (eee) of section 606 of the tax law made by section eight of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. REPEAL NOTE: Section 606(bbb) of the Tax Law, section 3-d of the General Municipal Law and section 2023-b of the Education Law collec- tively constituted the enabling legislation for the tax freeze credit program. By the terms of those statutes, the tax freeze credit was only applicable to taxable years 2014, 2015 and 2016. Therefore, these provisions no longer serve a purpose, except for the reporting provisions, which facilitate the administration of the tax levy limit program and are being preserved in a reenacted section 3-d of the Gener- al Municipal Law and section 2023-b of the Education Law. PART F Section 1. Subdivision 1 of section 544 of the real property tax law, as amended by chapter 18 of the laws of 2008, is amended and a new subdivision 3 is added to read as follows: 1. The comptroller shall pay taxes levied on lands of the state in each county pursuant to the foregoing sections of this title, out of moneys appropriated by the legislature therefor, to the county treasurer for appropriate distribution upon submission of a statement of such taxes by him or her in such form and executed in such manner by the county treasurer as may be required by the comptroller. Provided, howev- er, that in the case of lands which are taxable pursuant to subdivision (j) of section five hundred thirty-two of this title, the comptroller shall pay such taxes. Such payment shall be requested, processed and paid separately from all other taxes that are payable to the county treasurer pursuant to this section. PROVIDED FURTHER, THAT ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA- BLE PARCEL OF STATE LAND PURSUANT TO THIS SUBDIVISION, THE AMOUNT OF TAXES DUE AND PAYABLE ON THAT PARCEL THEREAFTER SHALL BE CALCULATED BY THE COMPTROLLER IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION THREE OF THIS SECTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA- BLE PARCEL OF STATE LAND PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE COMPTROLLER SHALL THEREAFTER CALCULATE THE TAXES DUE AND PAYABLE ON THAT PARCEL AS FOLLOWS: (A) IN THE CASE OF A LOCAL GOVERNMENT, THE TAXES SO PAYABLE SHALL EQUAL THE TAXES THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR FISCAL YEAR OF THE LOCAL GOVERNMENT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH FACTOR. AS USED IN THIS PARAGRAPH, THE TERMS "LOCAL GOVERNMENT," "PRIOR S. 7509 14 A. 9509 FISCAL YEAR" AND "ALLOWABLE LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS AS SET FORTH IN SECTION THREE-C OF THE GENERAL MUNICIPAL LAW, PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED TO HAVE THE MEANINGS SET FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON WHICH IT WAS IN EFFECT. (B) IN THE CASE OF A SCHOOL DISTRICT, THE TAXES SO PAYABLE SHALL EQUAL THE TAXES THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR SCHOOL YEAR OF THE SCHOOL DISTRICT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH FACTOR. AS USED IN THIS PARAGRAPH, THE TERMS "SCHOOL DISTRICT," "PRIOR SCHOOL YEAR" AND "ALLOWABLE LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS AS SET FORTH IN SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW, PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED TO HAVE THE MEANINGS SET FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON WHICH IT WAS IN EFFECT. (C) ON OR BEFORE JULY FIRST OF EACH YEAR, THE COMPTROLLER SHALL CALCU- LATE THE AMOUNTS OF TAXES THAT ARE DUE AND PAYABLE ON TAXABLE STATE LAND PURSUANT TO THIS SUBDIVISION, AND SHALL NOTIFY THE COMMISSIONER OF THE AMOUNTS SO CALCULATED. THE COMMISSIONER SHALL THEREUPON TRANSMIT THAT INFORMATION TO THE AFFECTED LOCAL GOVERNMENTS AND SCHOOL DISTRICTS. THE TAXES DUE ON SUCH LANDS SHALL BE PAID BY THE COMPTROLLER IN THE MANNER PROVIDED BY SUBDIVISION ONE OF THIS SECTION. (D) THE FOLLOWING PROVISIONS SHALL APPLY TO STATE LANDS THAT ARE SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION: (I) SUCH LANDS SHALL NOT BE INCLUDED ON THE LISTS OF TAXABLE STATE LANDS THAT MUST BE SUPPLIED BY THE COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY OF THIS TITLE. (II) THE ASSESSMENTS OF SUCH LANDS SHALL NOT BE REPORTED TO THE COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE. (III) THE ASSESSMENTS OF SUCH LANDS SHALL NOT BE SUBJECT TO THE APPROVAL OF THE COMMISSIONER PURSUANT TO SUCH SECTION, AND SHALL NOT BE TAKEN INTO ACCOUNT IN THE CALCULATION OF THE TAXES DUE ON SUCH LANDS. (IV) SUCH LANDS SHALL BE ENTERED ON THE EXEMPT PORTION OF THE ASSESS- MENT ROLL, NOTWITHSTANDING THE FACT THAT THEY ARE TAXABLE PURSUANT TO THIS TITLE. PROVIDED, THAT NO SUCH ENTRY SHALL BE MADE IN THE CASE OF AN ASSESSMENT ADJUSTMENT MADE BY THE COMMISSIONER PURSUANT TO PARAGRAPH (C) OF SUBDIVISION THREE OF SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE OR SECTION 15-2115 OF THE ENVIRONMENTAL CONSERVATION LAW, OR IN THE CASE OF STATE AID PAYABLE PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS TITLE DUE TO A REDUCTION IN THE ASSESSMENT OF TAXABLE STATE LAND. (V) SUCH LANDS SHALL BE DISREGARDED WHEN CALCULATING STATE EQUALIZA- TION RATES AND TAX RATES. (VI) WHEN A SCHOOL DISTRICT RECEIVES PAYMENTS OF TAXES ON STATE LANDS PURSUANT TO THIS SUBDIVISION, ANY ACTUAL VALUATION COMPUTED FOR SUCH SCHOOL DISTRICT PURSUANT TO PARAGRAPH C OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW SHALL INCLUDE THE ACTUAL VALUATION EQUIVALENT OF THOSE PAYMENTS. THE COMMISSIONER SHALL DETERMINE SUCH ACTUAL VALUATION EQUIVALENT BY DIVIDING THE PAYMENT MADE, AS REPORTED TO SUCH COMMISSIONER BY THE COMPTROLLER, BY THE SCHOOL TAX RATE THAT WAS APPLIED TO REAL PROPERTY ON THAT YEAR'S ASSESSMENT ROLL OR, IF APPLICABLE, THE SPECIAL APPORTIONMENT RATE DETERMINED PURSUANT TO SECTION TWELVE HUNDRED TWENTY-SEVEN OF THIS CHAPTER AND DIVIDING SUCH RESULT BY THE FINAL STATE EQUALIZATION RATE FOR THAT ROLL. THE ACTUAL VALUATION EQUIVALENT SHALL BE REPORTED TO THE STATE COMPTROLLER AND THE COMMISSIONER OF EDUCATION, AND SHALL BE USED BY THE COMMISSIONER OF S. 7509 15 A. 9509 EDUCATION IN THE DETERMINATION OF ANY STATE AVERAGE THAT USES REAL PROP- ERTY TAXES LEVIED AGAINST AND/OR ACTUAL VALUATION BASED UPON THE CORRE- SPONDING ASSESSMENT ROLL. EACH SCHOOL DISTRICT RECEIVING PAYMENTS OF TAXES ON STATE LANDS PURSUANT TO THIS SUBDIVISION SHALL ANNUALLY REPORT THOSE PAYMENTS TO THE COMMISSIONER OF EDUCATION, WITH A COPY TO THE COMMISSIONER, AS A CONDITION TO RECEIVING ANY AID PURSUANT TO SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW. (E) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE PAYMENT OF STATE AID PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS TITLE IN RELATION TO PROPERTY THAT HAS BECOME EXEMPT FROM TAXATION DUE TO ITS ACQUISITION BY THE STATE OR AN AGENCY OF THE STATE. § 2. This act shall take effect immediately. PART G Section 1. Section 4 of chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, is amended to read as follows: § 4. This act shall take effect on the first of January of the second calendar year commencing after this act shall have become a law and shall apply to assessment rolls with taxable status dates on or after such date; provided, however, that this act shall expire and be deemed repealed [four] EIGHT years after such effective date; and provided, further, that no assessment of local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the first calendar year after this act shall have become a law shall be less than ninety percent or more than one hundred ten percent of the assessment of the same property on the date this act shall have become a law. § 2. Subdivision 3 of section 499-kkkk of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. (A) For assessment rolls with taxable status dates in each of the three calendar years including and following the year in which this section shall take effect, the commissioner shall establish no assess- ment ceiling that is less than ninety percent or more than one hundred ten percent of the assessment of such local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the second preceding calendar year from when this section shall take effect, except that the commissioner may estab- lish assessment ceilings below the ninety percent level or above the one hundred ten percent level to take into account any change in level of assessment and/or to take into account any additions or retirements to public utility mass real property or litigation affecting the value or taxable status of the local public utility mass real property initiated prior to the effective date of this section. (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN THE YEARS TWO THOUSAND EIGHTEEN, TWO THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING THAT IS BELOW THE LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL OF ASSESSMENT AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING THE VALUE OR TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI- ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. S. 7509 16 A. 9509 (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND EIGHTEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN SEVENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND FOURTEEN. (II) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR MORE THAN ONE HUNDRED FIFTY PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND FOUR- TEEN. (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND TWENTY, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN TWENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND FOURTEEN. § 3. This act shall take effect immediately, provided, however, that the amendments to subdivision three of section 499-kkkk of the real property tax law made by section two of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART H Section 1. Subsection (c) of section 683 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. § 2. Subsection (c) of section 1083 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. § 3. Subdivision (c) of section 11-1783 of the administrative code of the city of New York is amended by adding a new paragraph 9 to read as follows: (9) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVI- SION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. S. 7509 17 A. 9509 § 4. This act shall take effect immediately and shall apply to amended returns filed on or after the effective date of this act. PART I Section 1. Paragraph 1 of subdivision (d) of section 658 of the tax law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: (1) The commissioner of taxation and finance may prescribe regulations and instructions requiring returns of information to be made and filed on or before February twenty-eighth of each year as to the payment or crediting in any calendar year of amounts of six hundred dollars or more to any taxpayer under this article. Such returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal or payment of interest, rents, salaries, wages, premiums, annuities, compensations, remunera- tions, emoluments or other fixed or determinable gains, profits or income, except interest coupons payable to bearer. Information required to be furnished pursuant to paragraph four of subsection (a) of section six hundred seventy-four on a quarterly combined withholding and wage reporting return covering [the last] EACH calendar quarter of each year and relating to tax withheld on wages paid by an employer to an employee for [the full] EACH calendar [year] QUARTER, shall constitute the return of information required to be made under this section with respect to such wages. § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section 674 of the tax law, as amended by section 1 of subpart E of part VI of chap- ter 57 of the laws of 2009, is amended to read as follows: (A) All employers described in paragraph one of subsection (a) of section six hundred seventy-one of this part, including those whose wages paid are not sufficient to require the withholding of tax from the wages of any of their employees, all employers required to provide the wage reporting information for the employees described in subdivision one of section one hundred seventy-one-a of this chapter, and all employers liable for unemployment insurance contributions or for payments in lieu of such contributions pursuant to article eighteen of the labor law, shall file a quarterly combined withholding, wage report- ing and unemployment insurance return detailing the preceding calendar quarter's withholding tax transactions, such quarter's wage reporting information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such quarter's unemployment insurance contributions, and such other related information as the commissioner of taxation and finance or the commis- sioner of labor, as applicable, may prescribe. [In addition, the return covering the last calendar quarter of each year shall also include with- holding reconciliation information for such calendar year.] Such returns shall be filed no later than the last day of the month following the last day of each calendar quarter. § 3. Paragraph 3 of subsection (v) of section 685 of the tax law, as amended by chapter 477 of the laws of 1998, is amended to read as follows: (3) Failure to provide complete and correct employee withholding reconciliation information. In the case of a failure by an employer to provide complete and correct [annual] QUARTERLY withholding information relating to individual employees on a quarterly combined withholding, S. 7509 18 A. 9509 wage reporting and unemployment insurance return covering [the last] EACH calendar quarter of a year, such employer shall, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, pay a penalty equal to the product of fifty dollars multiplied by the number of employees for whom such information is incomplete or incorrect; provided, however, that if the number of such employees cannot be determined from the quarterly combined withholding, wage reporting and unemployment insurance return, the commissioner may utilize any information in the commissioner's possession in making such determination. The total amount of the penalty imposed pursuant to this paragraph on an employer for any such failure for [the last] EACH calen- dar quarter of a year shall not exceed ten thousand dollars. § 4. This act shall take effect immediately and shall apply to calen- dar quarters beginning on or after January 1, 2019. PART J Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as amended by section 1 of part DD of chapter 407 of the laws of 1999, is amended to read as follows: (i) The receipts from every sale, OTHER THAN SALES FOR RESALE, of beer, wine or other alcoholic beverages or any other drink of any nature, or from every sale, OTHER THAN SALES FOR RESALE, of food and drink of any nature or of food alone, when sold in or by restaurants, taverns or other establishments in this state, or by caterers, including in the amount of such receipts any cover, minimum, entertainment or other charge made to patrons or customers (except those receipts taxed pursuant to subdivision (f) of this section): (1) in all instances where the sale is for consumption on the premises where sold; (2) in those instances where the vendor or any person whose services are arranged for by the vendor, after the delivery of the food or drink by or on behalf of the vendor for consumption off the premises of the vendor, serves or assists in serving, cooks, heats or provides other services with respect to the food or drink; and (3) in those instances where the sale is made through a vending machine that is activated by use of coin, currency, credit card or debit card (except the sale of drinks in a heated state made through such a vending machine) or is for consumption off the premises of the vendor, except where food (other than sandwiches) or drink or both are (A) sold in an unheated state and, (B) are of a type commonly sold for consump- tion off the premises and in the same form and condition, quantities and packaging, in establishments which are food stores other than those principally engaged in selling foods prepared and ready to be eaten. § 2. This act shall take effect June 1, 2018 and shall apply to sales made on and after such date. PART K Section 1. The tax law is amended by adding a new section 171-z to read as follows: § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING UNCLAIMED FUNDS. 1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED TO RELEASE TO THE COMPTROLLER INFORMATION REGARDING FIXED AND FINAL UNWARRANTED DEBTS OF TAXPAYERS FOR PURPOSES OF COLLECTING UNCLAIMED S. 7509 19 A. 9509 FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED DEBTS OWED BY TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX, INTER- EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND A WARRANT HAS NOT BEEN FILED; AND THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO- RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY, PARTNER, MEMBER, MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI- TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE STATE. THIS SECTION SHALL NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED THE STATE FROM UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW. 2. THE COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY TAXPAYER INFORMA- TION RECEIVED UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER OR STAFF OF THE DEPARTMENT OR STAFF OF THE DEPARTMENT OF AUDIT AND CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION. § 2. This act shall take effect immediately. PART L Section 1. Subdivision 2 of section 136 of the social services law, as amended by section 24 of part B of chapter 436 of the laws of 1997, is amended to read as follows: 2. All communications and information relating to a person receiving public assistance or care obtained by any social services official, service officer, or employee in the course of his or her work shall be considered confidential and, except as otherwise provided in this section, shall be disclosed only to the commissioner, or his or her authorized representative, the commissioner of labor, or his or her authorized representative, the commissioner of health, or his or her authorized representative, THE COMMISSIONER OF TAXATION AND FINANCE, OR HIS OR HER AUTHORIZED REPRESENTATIVE (OTHER THAN THE DISCLOSURE OF INFORMATION THAT HAS BEEN PROHIBITED BY FEDERAL LAW), the welfare inspector general, or his or her authorized representative, the county board of supervisors, city council, town board or other board or body authorized and required to appropriate funds for public assistance and care in and for such county, city or town or its authorized represen- tative or, by authority of the county, city or town social services official, to a person or agency considered entitled to such information. Nothing herein shall preclude a social services official from report- ing to an appropriate agency or official, including law enforcement agencies or officials, known or suspected instances of physical or mental injury, sexual abuse or exploitation, sexual contact with a minor or negligent treatment or maltreatment of a child of which the official becomes aware in the administration of public assistance and care nor shall it preclude communication with the federal immigration and natur- alization service regarding the immigration status of any individual. § 2. This act shall take effect immediately. PART M Section 1. The tax law is amended by adding a new section 44 to read as follows: S. 7509 20 A. 9509 § 44. INVESTMENT MANAGEMENT SERVICES. (A) FOR PURPOSES OF THIS SECTION, THE TERM "INVESTMENT MANAGEMENT SERVICES" TO A PARTNERSHIP, S CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING THE PURCHASE OR SALE OF SECURITIES AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (C) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE THEREOF, REAL ESTATE HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (E) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE, OR OPTIONS OR DERIVATIVE CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING, OR DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT TO THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI- VISION. (B) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS. NOTWITHSTANDING ANY STATE OR FEDERAL LAW TO THE CONTRARY: (1) WHERE A PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER FOR PURPOSES OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE SHARE OF INCOME, GAIN, LOSS AND DEDUCTION, INCLUDING ANY GUARANTEED PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE WOULD HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES FOR THE PARTNERSHIP. INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS A BUSINESS RECEIPT FOR SERVICES AND FOR PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION OR OCCUPATION. PROVIDED, HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE BEEN DETERMINED IF THE PARTNER PERFORMED NO INVESTMENT MANAGEMENT SERVICES SHALL NOT BE LESS THAN ZERO. (2) WHERE A SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A SHAREHOLDER FOR PURPOSES OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE- HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT IS IN EXCESS OF THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE- HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES. INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION OR OCCUPATION. PROVIDED, HOWEVER, THE AMOUNT OF THE PRO RATA SHARE THAT WOULD HAVE BEEN DETERMINED IF THE SHAREHOLDER PERFORMED NO SERVICES SHALL NOT BE LESS THAN ZERO. (3) A PARTNER OR SHAREHOLDER WILL NOT BE DEEMED TO BE PROVIDING INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION IF AT LEAST EIGHTY PERCENT OF THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER- SHIP OR S CORPORATION DURING THE TAXABLE YEAR CONSIST OF REAL ESTATE HELD FOR RENTAL OR INVESTMENT. (C) IN ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY CORPORATION, PARTNER OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT TO AN ADDITIONAL TAX, REFERRED TO AS THE "CARRIED INTEREST FAIRNESS FEE". SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE OF A CORPORATION OR SHAREHOLDER OF AN S CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT APPORTIONED TO THE STATE BY APPLYING THE CORPORATION'S OR S CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED S. 7509 21 A. 9509 TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID- ING SUCH INVESTMENT MANAGEMENT SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES AS DETERMINED UNDER SECTION SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN ACCORDANCE WITH ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS- LATIVE BILL DRAFTING COMMISSION THAT FEDERAL LEGISLATION HAS BEEN ENACTED THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION. § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law, as amended by section 5 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (a) (i) The term "investment income" means income, including capital gains in excess of capital losses, from investment capital, to the extent included in computing entire net income, less, (A) in the discretion of the commissioner, any interest deductions allowable in computing entire net income which are directly or indirectly attribut- able to investment capital or investment income, AND (B) ANY NET CAPITAL GAIN INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED AS A BUSINESS RECEIPT PURSUANT TO SECTION FORTY-FOUR OF THIS CHAPTER; provided, however, that in no case shall investment income exceed entire net income. (ii) If the amount of interest deductions subtracted under subparagraph (i) of this paragraph exceeds investment income, the excess of such amount over investment income must be added back to entire net income. (iii) If the taxpayer's investment income determined without regard to the interest deductions subtracted under subparagraph (i) of this paragraph comprises more than eight percent of the taxpayer's entire net income, investment income determined without regard to such interest deductions cannot exceed eight percent of the taxpayer's entire net income. § 3. Subsection (b) of section 617 of the tax law, as amended by chap- ter 606 of the laws of 1984, is amended to read as follows: (b) Character of items. [Each] EXCEPT AS PROVIDED IN SECTION FORTY- FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income, gain, loss, or deduction shall have the same character for a partner or shareholder under this article as for federal income tax purposes. Where an item is not characterized for federal income tax purposes, it shall have the same character for a partner or shareholder as if realized directly from the source from which realized by the partnership or S corporation or incurred in the same manner as incurred by the partner- ship or S corporation. § 4. Subsection (d) of section 631 of the tax law, as amended by chap- ter 28 of the laws of 1987, is amended to read as follows: (d) Purchase and sale for own account.-- A nonresident, other than a dealer holding property primarily for sale to customers in the ordinary course of his OR HER trade or business OR A PARTNER OR SHAREHOLDER PERFORMING INVESTMENT MANAGEMENT SERVICES AS DESCRIBED IN SECTION FORTY-FOUR OF THIS CHAPTER, shall not be deemed to carry on a business, trade, profession or occupation in this state solely by reason of the purchase and sale of property or the purchase, sale or writing of stock option contracts, or both, for his own account. § 5. The opening paragraph of subsection (b) of section 632 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows: S. 7509 22 A. 9509 [In] EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS CHAP- TER, IN determining the sources of a nonresident partner's income, no effect shall be given to a provision in the partnership agreement which-- § 6. For taxable years beginning on or after January 1, 2018 and before January 1, 2019, (i) no addition to tax under subsection (c) of section 685 or subsection (c) of section 1085 of the tax law shall be imposed with respect to any underpayment attributable to the amendments made by this act of any estimated taxes that are required to be paid prior to the effective date of this act, provided that the taxpayer timely made those payments; and (ii) the required installment of esti- mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of subsection (c) of section 685 of the tax law, and the exception to addi- tion for underpayment of estimated tax described in paragraph 1 or 2 of subsection (d) of section 1085 of the tax law, in relation to the preceding year's return, shall be calculated as if the amendments made by this act had been in effect for that entire preceding year. § 7. This act shall take effect upon the enactment into law by the states of Connecticut, New Jersey, Massachusetts and Pennsylvania of legislation having substantially the same effect as this act and the enactments by such states have taken effect in each state and shall apply for taxable years beginning on or after such date; provided, however, if the states of Connecticut, New Jersey, Massachusetts and Pennsylvania have already enacted such legislation, this act shall take effect immediately and shall apply for taxable years beginning on or after January 1, 2018; provided further that the commissioner of taxa- tion and finance shall notify the legislative bill drafting commission upon the enactment of such legislation by the states of Connecticut, New Jersey, Massachusetts and Pennsylvania in order that such commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law. PART N Section 1. Section 2016 of the tax law, as amended by chapter 401 of the laws of 1987, is amended to read as follows: § 2016. Judicial review. A decision of the tax appeals tribunal, which is not subject to any further administrative review, shall finally and irrevocably decide all the issues which were raised in proceedings before the division of tax appeals upon which such decision is based unless, within four months after notice of such decision is served by the tax appeals tribunal upon every party to the proceeding before such tribunal by certified mail or personal service, the petitioner who commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI- TION for judicial review in the manner provided by article seventy-eight of the civil practice law and rules, except as otherwise provided in this [section] CHAPTER. Such service by certified mail shall be complete upon deposit of such notice, enclosed in a post-paid properly addressed wrapper, in a post office or official depository under the exclusive care and custody of the United States postal service. [The] WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION shall designate the tax appeals tribunal and the commissioner [of taxation and finance] as respondents in the proceeding for judicial review. WHERE S. 7509 23 A. 9509 THE COMMISSIONER FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION SHALL DESIGNATE THE TAX APPEALS TRIBUNAL AND THE PETITIONER WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS RESPOND- ENTS IN THE PROCEEDING FOR JUDICIAL REVIEW. The tax appeals tribunal shall not participate in proceedings for judicial review of its deci- sions and such proceedings for judicial review shall be commenced in the appellate division of the supreme court, third department. In all other respects the provisions and standards of article seventy-eight of the civil practice law and rules shall apply. The record to be reviewed in such proceedings for judicial review shall include the determination of the administrative law judge, the decision of the tax appeals tribunal, the stenographic transcript of the hearing before the administrative law judge, the transcript of any oral proceedings before the tax appeals tribunal and any exhibit or document submitted into evidence at any proceeding in the division of tax appeals upon which such decision is based. § 2. This act shall take effect immediately and shall apply to deci- sions and orders issued by the tax appeals tribunal on or after such date. PART O Section 1. Subparagraph (B) of paragraph 1 of subsection (b) of section 605 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows: (B) who [is not domiciled in this state but] maintains a permanent place of abode in this state and spends in the aggregate more than one hundred eighty-three days of the taxable year in this state, WHETHER OR NOT DOMICILED IN THIS STATE FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law, as amended by chapter 225 of the laws of 1977, is amended to read as follows: (2) who [is not domiciled in such city but] maintains a permanent place of abode in such city and spends in the aggregate more than one hundred eighty-three days of the taxable year in such city, WHETHER OR NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 3. Subparagraph (B) of paragraph 1 of subdivision (b) of section 11-1705 of the administrative code of the city of New York, as amended by chapter 333 of the laws of 1987, is amended to read as follows: (B) who [is not domiciled in this city but] maintains a permanent place of abode in this city and spends in the aggregate more than one hundred eighty-three days of the taxable year in this city, WHETHER OR NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 4. This act shall take effect immediately and shall apply to all taxable years for which the statute of limitations for seeking a refund or assessing additional tax is still open. PART P S. 7509 24 A. 9509 Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax law, as amended by section 1 of part L1 of chapter 109 of the laws of 2006, is amended to read as follows: (1) A resident taxpayer shall be allowed a credit as provided herein equal to the greater of one hundred dollars times the number of qualify- ing children of the taxpayer or the applicable percentage of the child tax credit allowed the taxpayer under section twenty-four of the inter- nal revenue code for the same taxable year for each qualifying child. Provided, however, in the case of a taxpayer whose federal adjusted gross income exceeds the applicable threshold amount set forth by section 24(b)(2) of the Internal Revenue Code, the credit shall only be equal to the applicable percentage of the child tax credit allowed the taxpayer under section 24 of the Internal Revenue Code for each qualify- ing child. For the purposes of this subsection, a qualifying child shall be a child who meets the definition of qualified child under section 24(c) of the internal revenue code and is at least four years of age. The applicable percentage shall be thirty-three percent. FOR PURPOSES OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL REVENUE CODE SHALL BE A REFERENCE TO SUCH SECTION AS IT EXISTED IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 2. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2018. PART Q Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as amended by section 1 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. S. 7509 25 A. 9509 § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as amended by section 2 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as amended by section 3 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any S. 7509 26 A. 9509 week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 4. This act shall take effect immediately. PART R Section 1. Subdivision (c) of section 25-a of the labor law, as amended by section 1 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (c) A qualified employer shall be entitled to a tax credit equal to (1) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (2) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (3) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI- SION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full time. The tax credits shall be claimed by the qualified employer as specified in subdivision thirty-six of section two hundred ten-B and subsection (tt) of section six hundred six of the tax law. § 2. Subdivisions (d), (e) and (f) of section 25-a of the labor law, subdivisions (d) and (e) as amended by section 1 of subpart A of part N of chapter 59 of the laws of 2017 and subdivision (f) as amended by section 1 of part AA of chapter 56 of the laws of 2015, are amended to read as follows: (d) To participate in the program established under this section, an employer must submit an application (in a form prescribed by the commis- sioner) to the commissioner after January first, two thousand twelve but no later than November thirtieth, two thousand twelve for program one, after January first, two thousand fourteen but no later than November thirtieth, two thousand fourteen for program two, after January first, two thousand fifteen but no later than November thirtieth, two thousand fifteen for program three, after January first, two thousand sixteen but no later than November thirtieth, two thousand sixteen for program four, after January first, two thousand seventeen but no later than November thirtieth, two thousand seventeen for program five, after January first, two thousand eighteen but no later than November thirtieth, two thousand eighteen for program six, after January first, two thousand nineteen but no later than November thirtieth, two thousand nineteen for program S. 7509 27 A. 9509 seven, after January first, two thousand twenty but no later than Novem- ber thirtieth, two thousand twenty for program eight, after January first, two thousand twenty-one but no later than November thirtieth, two thousand twenty-one for program nine, and after January first, two thou- sand twenty-two but no later than November thirtieth, two thousand twen- ty-two for program ten. The qualified employees must start their employ- ment on or after January first, two thousand twelve but no later than December thirty-first, two thousand twelve for program one, on or after January first, two thousand fourteen but no later than December thirty- first, two thousand fourteen for program two, on or after January first, two thousand fifteen but no later than December thirty-first, two thou- sand fifteen for program three, on or after January first, two thousand sixteen but no later than December thirty-first, two thousand sixteen for program four, on or after January first, two thousand seventeen but no later than December thirty-first, two thousand seventeen for program five, on or after January first, two thousand eighteen but no later than December thirty-first, two thousand eighteen for program six, on or after January first, two thousand nineteen but no later than December thirty-first, two thousand nineteen for program seven, on or after Janu- ary first, two thousand twenty but no later than December thirty-first, two thousand twenty for program eight, on or after January first, two thousand twenty-one but no later than December thirty-first, two thou- sand twenty-one for program nine, and on or after January first, two thousand twenty-two but no later than December thirty-first, two thou- sand twenty-two for program ten. [The commissioner shall establish guidelines and criteria that specify requirements for employers to participate in the program including criteria for certifying qualified employees, ensuring that the process established will minimize any undue delay in issuing the certificate of eligibility. Any regulations that the commissioner determines are necessary may be adopted on an emergency basis notwithstanding anything to the contrary in section two hundred two of the state administrative procedure act. Such requirements may include the types of industries that the employers are engaged in. The commissioner may give preference to employers that are engaged in demand occupations or industries, or in regional growth sectors, including but not limited to those identified by the regional economic development councils, such as clean energy, healthcare, advanced manufacturing and conservation. In addition, the commissioner shall give preference to employers who offer advancement and employee benefit packages to the qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF TAXA- TION AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS OF EMPLOYEES THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE. (e) If, after reviewing the application submitted by an employer, the commissioner determines that such employer is eligible to participate in the program established under this section, the commissioner shall issue the employer a PRELIMINARY certificate of eligibility that establishes the employer as a qualified employer. The PRELIMINARY certificate of eligibility shall specify the maximum amount of tax credit that the employer [will] MAY be allowed to claim and the program year under which it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT THE EMPLOYER S. 7509 28 A. 9509 IS ALLOWED TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C) OF THIS SECTION. (f) The commissioner shall annually publish a report. Such report must contain the names and addresses of any employer issued a PRELIMINARY certificate of eligibility under this section, [and] the [maximum] amount of New York youth works tax credit allowed to the QUALIFIED employer as specified on [such] AN ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT AND ANY OTHER INFORMATION AS DETERMINED BY THE COMMISSIONER. § 3. Section 25-a of the labor law is amended by adding three new subdivisions (e-1), (e-2) and (e-3) to read as follows: (E-1)(1) TO RECEIVE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR BEFORE JANUARY THIRTY- FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY THE COMMISSIONER. THE REPORT MUST DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE COMMIS- SIONER SHALL ISSUE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT. SUCH CERTIFICATE SHALL INCLUDE, IN ADDITION TO ANY OTHER INFORMATION THE COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION: (I) THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE QUALIFIED EMPLOYER; (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD; (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED EMPLOYER IS ENTITLED FOR THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL FINAL CERTIFICATE IS ISSUED, WHICH ACTUAL AMOUNT CANNOT EXCEED THE AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS THAN SUCH AMOUNT; AND (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT. (E-2) IN DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL YEAR OF CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF SUBDIVISION (C) OF THIS SECTION. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT IS ISSUED. (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD- ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM- S. 7509 29 A. 9509 INARY CERTIFICATE OF ELIGIBILITY AND ANNUAL FINAL CERTIFICATE OF TAX CREDIT. ANY REGULATIONS THAT THE COMMISSIONER DETERMINES ARE NECESSARY MAY BE ADOPTED ON AN EMERGENCY BASIS NOTWITHSTANDING ANYTHING TO THE CONTRARY IN SECTION TWO HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCE- DURE ACT. SUCH REQUIREMENTS MAY INCLUDE THE TYPES OF INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN. THE COMMISSIONER MAY GIVE PREFERENCE TO EMPLOYERS THAT ARE ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING BUT NOT LIMITED TO THOSE IDENTIFIED BY THE REGIONAL ECONOMIC DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY, HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION. IN ADDITION, THE COMMISSIONER SHALL GIVE PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS. § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 2 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA- GRAPH by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the quali- fied employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 4 of this act, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law S. 7509 30 A. 9509 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(i) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-FIVE-A OF THE LABOR LAW. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM- PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 6. Paragraph (c) of subdivision 36 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to S. 7509 31 A. 9509 the contrary, the commissioner and the commissioner's designees may release the names and addresses of any taxpayer claiming this credit and the amount of the credit earned by the taxpayer. Provided, however, if a taxpayer claims this credit because it is a member of a limited liability company or a partner in a partnership, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 3 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liabil- ity company or S corporation. For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 7 of this act, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law S. 7509 32 A. 9509 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(A) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY- FIVE-A OF THE LABOR LAW. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has [been certified by] RECEIVED ITS ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM the commissioner of labor as a qualified employer pursu- ant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liability company or S corporation. [For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends.] IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY- ER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law, as added by section 3 of part D of chapter 56 of the laws of 2011, is amended to read as follows: S. 7509 33 A. 9509 (3) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may release the names and addresses of any taxpayer claiming this credit and the amount of the credit earned by the taxpayer. Provided, however, if a taxpayer claims this credit because it is a member of a limited liabil- ity company, a partner in a partnership, or a shareholder in a subchap- ter S corporation, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 10. This act shall take effect immediately, provided however that (i) section one of this act shall apply to tax years beginning on or after January 1, 2018; (ii) sections four and seven of this act shall apply to tax years beginning on or after January 1, 2018 and before January 1, 2019; and (iii) sections two, three, five, six, eight, and nine of this act shall take effect January 1, 2019 and shall apply to tax years beginning on or after January 1, 2019. PART S Section 1. Section 33 of the tax law, as added by section 1 of part Y of chapter 57 of the laws of 2010, is amended to read as follows: § 33. Temporary deferral of certain tax credits. 1. (a) For taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE, the excess over two million dollars of the total amount of the tax credits speci- fied in subdivision three of this section that in each of those taxable years would otherwise be used to reduce the taxpayer's tax liability to the amount otherwise specified in this chapter or be refunded or credit- ed as an overpayment will be deferred to and used or refunded in taxable years beginning on or after January first, two thousand [thirteen] TWEN- TY-ONE in accordance with the provisions of section thirty-four of this article. Interest shall not be paid on the amounts of credit deferred. (b) To determine the amount of each tax credit allowed for the taxable year to be used, refunded or credited as an overpayment the taxpayer shall multiply the amount of each credit subject to deferral that would have been used, refunded or credited as an overpayment in the absence of this section by a fraction, the numerator of which is two million dollars, and the denominator of which is the total amount of the taxpay- er's credits subject to deferral pursuant to subdivision three of this section that would have been used, refunded or credited as an overpay- ment for the taxable year in the absence of this section. The product is the amount of such credit that is not subject to deferral and thus allowed to be used, refunded or credited as an overpayment for the taxa- ble year. 2. Taxpayers shall calculate and make any estimated tax payments required to be made by taking into account the deferral of credits required by this section. Taxpayers shall calculate any mandatory first installment payments made on or after the effective date of this section as if the deferral of credits required by this section had been in effect for the taxable year upon which that installment is based. In addition, for taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [eleven] S. 7509 34 A. 9509 NINETEEN, (a) no addition to tax under subsection (c) of section six hundred eighty-five of this chapter or subsection (c) of section one thousand eighty-five of this chapter shall be imposed with respect to any underpayment attributable to the deferral required by this section of any estimated taxes that are required to be paid prior to the enact- ment of this section, provided that the taxpayer timely made those payments; and (b) the required installment of estimated tax described in clause (ii) of subparagraph (B) of paragraph three of subsection (c) of section six hundred eighty-five of this chapter, and the exception to addition for underpayment of estimated tax described in paragraph one or two of subsection (d) of section one thousand eighty-five of this chap- ter, in relation to the preceding year's return, shall be calculated as if the deferral required by this section had been in effect for that entire preceding year. 3. (a) This section shall apply to the credits allowed under the following provisions in article nine-a of this chapter and any applica- ble counterpart provisions in articles nine, twenty-two, [thirty-two] and thirty-three of this chapter: Section [210(12)] 210-B(1) investment tax credit Section [210(12-B)] 210-B(3) empire zone investment tax credit Section [210(12-C)] 210-B(4) empire zone employment incentive credit Section [210(12-D)] 210-B(2) employment incentive credit Section [210(12-E)] 210-B(7) QETC employment credit Section [210(12-F)] 210-B(8) QETC capital tax credit [Section 210(12-G) QETC facilities, operations, and training credit] Section [210(17)] 210-B(9) special additional mortgage recording tax credit [Section 210(19) empire zone wage tax credit Section 210(20) empire zone capital tax credit] Section [210(21-a)] 210-B(10) credit for servicing certain mortgages Section [210(23)] 210-B(12) credit for employment of persons with disabilities Section [210(24)] 210-B(30) alternative fuels AND ELECTRIC VEHICLE RECHARGING PROPERTY credit Section [210(25)] 210-B(13) credit for purchase of an automated external defibrillator Section [210(27)] 210-B(5) QEZE credit for real property taxes Section [210(28)] 210-B(6) QEZE tax reduction credit Section [210(30)] 210-B(15) low income housing credit Section [210(31)] 210-B(16) green building credit Section [210(33)] 210-B(17) brownfield redevelopment tax credit Section [210(34)] 210-B(18) remediated brownfield credit for real property taxes for qualified sites Section [210(35)] 210-B(19) environmental remediation insurance credit Section [210(37)] 210-B(21) security training tax credit [Section 210(37) credit for fuel cell electric generating equipment expenditures] Section [210(38)] 210-B(22) conservation easement tax credit [Section 210(38) empire state commercial production credit] Section [210(38)] 210-B(24) biofuel production credit Section [210(39)] 210-B(25) clean heating fuel credit Section [210(40)] 210-B(26) credit for rehabilitation of historic properties Section [210(40)] 210-B(38) credit for companies who provide transpor- tation to individuals with disabilities SECTION 210-B(11) AGRICULTURAL PROPERTY TAX CREDIT S. 7509 35 A. 9509 SECTION 210-B(35) ECONOMIC TRANSFORMATION AND FACILITY REDEVELOPMENT CREDIT SECTION 210-B(39) ALCOHOLIC BEVERAGE PRODUCTION CREDIT SECTION 210-B(40) MINIMUM WAGE REIMBURSEMENT CREDIT SECTION 210-B(41) THE TAX-FREE NY AREA TAX ELIMINATION CREDIT SECTION 210-B(43) REAL PROPERTY TAX CREDIT FOR MANUFACTURERS SECTION 210-B(44) THE TAX-FREE NY AREA EXCISE TAX ON TELECOMMUNICATION SERVICES CREDIT SECTION 210-B(47) MUSICAL AND THEATRICAL PRODUCTION CREDIT SECTION 210-B(48) WORKERS WITH DISABILITIES TAX CREDIT SECTION 210-B(51) FARM WORKFORCE RETENTION CREDIT (b) This section shall also apply to the credits allowed by the following sections: [Section 186-a(9) power for jobs credit] Section 606(g-1) solar energy system equipment credit Section 606(pp) historic homeownership rehabilitation credit Section 1511(k) credit for certain investments in certified capital companies § 2. Subdivisions 1 and 2 of section 34 of the tax law, as added by section 2 of part Y of chapter 57 of the laws of 2010, are amended to read as follows: 1. The amounts of nonrefundable credits that are deferred pursuant to section thirty-three of this article in taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE shall be accumulated and constitute the taxpayer's temporary deferral nonrefundable payout cred- it. The taxpayer may first claim this credit in the taxable year begin- ning on or after January first, two thousand [thirteen] TWENTY-ONE and before January first, two thousand [fourteen] TWENTY-TWO. The taxpayer shall be allowed to claim this credit until the accumulated amounts are exhausted. The credit shall be allowed against the taxpayer's tax as provided in the provisions referenced in paragraph (a) of subdivision three of this section. 2. The amounts of refundable credits that are deferred pursuant to section thirty-three of this article in taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE shall be accumulated and constitute the taxpayer's temporary deferral refundable payout credit. In the taxable year beginning on or after January first, two thousand [thirteen] TWENTY-ONE and before January first, two thousand [fourteen] TWENTY-TWO, the taxpayer shall be allowed to claim a credit equal to fifty percent of the amount accumulated. In the taxable year beginning on or after January first, two thousand [fourteen] TWENTY-TWO and before January first, two thousand [fifteen] TWENTY-THREE, the taxpayer shall be allowed to claim a credit equal to seventy-five percent of the balance of the amount accumulated. In the taxable year beginning on or after January first, two thousand [fifteen] TWENTY-THREE and before January first, two thousand [sixteen] TWENTY-FOUR, the taxpayer shall be allowed to claim a credit equal to the remaining balance of the amount accumulated. The credit shall be allowed against the taxpayer's tax as provided in the provisions referenced in paragraph (b) of subdivision three of this section. § 3. This act shall take effect immediately. PART T S. 7509 36 A. 9509 Section 1. Subdivision (a) of section 1412 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (a) A grantor or grantee claiming to have erroneously paid the tax imposed by this article or some other person designated by such grantor or grantee may file an application for refund within [two] THREE years from the date of payment. Such application shall be filed with the commissioner [of taxation and finance] on a form which he shall prescribe. § 2. Subdivision (b) of section 1402-a of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (b) Notwithstanding the provisions of subdivision (a) of section four- teen hundred four of this article, the additional tax imposed by this section shall be paid by the grantee. If the grantee [is exempt from such tax, the grantor shall have the duty to pay the tax] HAS FAILED TO PAY THE TAX IMPOSED BY THIS ARTICLE AT THE TIME REQUIRED BY SECTION FOURTEEN HUNDRED TEN OF THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX, THE GRANTOR SHALL HAVE THE DUTY TO PAY THE TAX. WHERE THE GRANTOR HAS THE DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY, SUCH TAX SHALL BE THE JOINT AND SEVERAL LIABILITY OF THE GRANTOR AND THE GRANTEE. § 3. This act shall take effect immediately; provided, however, that section two of this act shall apply to conveyances occurring on or after the fifteenth day after this act shall have become a law. PART U Section 1. Subdivision 6 of section 470 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 6. "Wholesale price." The [established] INVOICE price for which a manufacturer OR OTHER PERSON sells tobacco products to a distributor, INCLUDING THE FEDERAL EXCISE TAXES PAID BY THE MANUFACTURER OR OTHER PERSON, before the allowance of any discount, trade allowance, rebate or other reduction. [In the absence of such an established price, a manufacturer's invoice price of any tobacco product shall be presumptive evidence of the whole- sale price of such tobacco product, and in its absence the price at which such tobacco products were purchased shall be presumed to be the wholesale price, unless evidence of a lower wholesale price shall be established or any industry standard of markups relating to the purchase price in relation to the wholesale price shall be established.] § 2. This act shall take effect on September 1, 2018 and shall apply to all tobacco products possessed in this state for sale on or after such date. PART V Section 1. Subparagraph (A) of paragraph 1 of subdivision (b) of section 1105 of the tax law, as amended by section 9 of part S of chap- ter 85 of the laws of 2002, is amended to read as follows: (A) gas, electricity, refrigeration and steam, and gas, electric, refrigeration and steam service of whatever nature, INCLUDING THE TRANS- PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY, EVEN IF SOLD SEPARATELY; § 2. Section 1105-C of the tax law is REPEALED. S. 7509 37 A. 9509 § 3. Subparagraph (xi) of paragraph 4 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of the laws of 2016, is amended to read as follows: (xi) [shall provide that section eleven hundred five-C of this chapter does not apply to such taxes, and] shall tax receipts from every sale, other than sales for resale, of gas service or electric service of what- ever nature, including the transportation, transmission or distribution of gas or electricity, even if sold separately, at the rate set forth in clause one of subparagraph (i) of the opening paragraph of this section; § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- trative code of the city of New York, as amended by chapter 200 of the laws of 2009, is amended to read as follows: (8) [makes inapplicable section eleven hundred five-C of the tax law, and] imposes tax on receipts from every sale, other than sales for resale, of gas service or electric service of whatever nature, including the transportation, transmission or distribution of gas or electricity, even if sold separately, at the rate set forth in subdivision (a) of this section. § 5. This act shall take effect immediately; provided however that this act shall apply to sales made and services rendered on and after June 1, 2018 whether or not such sales and services are rendered under a prior contract. PART W Section 1. Subdivision (f) of section 1115 of the tax law, as amended by chapter 205 of the laws of 1968, is amended to read as follows: (f) (1) Services rendered by a veterinarian licensed and registered as required by the education law which constitute the practice of veteri- nary medicine as defined in said law, including hospitalization for which no separate boarding charge is made, shall not be subject to tax under paragraph (3) of subdivision (c) of section eleven hundred five, but the exemption allowed by this subdivision shall not apply to other services provided by a veterinarian to pets and other animals, includ- ing, but not limited to, boarding, grooming and clipping. Articles of tangible personal property designed for use in some manner relating to domestic animals or poultry, when sold by such a veterinarian, shall not be subject to tax under subdivision (a) of section eleven hundred five or under section eleven hundred ten. However, the sale of any such arti- cles of tangible personal property to a veterinarian shall not be deemed a sale for resale within the meaning of [pargraph] PARAGRAPH (4) of subdivision (b) of section eleven hundred one and shall not be exempt from retail sales tax. (2) DRUGS OR MEDICINE SOLD TO OR USED BY A VETERINARIAN FOR USE IN RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION TO LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO A PERSON QUALIFYING FOR THE EXEMPTION PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY. § 2. Subdivision (a) of section 1119 of the tax law, as amended by chapter 686 of the laws of 1986 and as further amended by section 15 of part GG of chapter 63 of the laws of 2000, is amended to read as follows: (a) Subject to the conditions and limitations provided for herein, a refund or credit shall be allowed for a tax paid pursuant to subdivision (a) of section eleven hundred five or section eleven hundred ten (1) on S. 7509 38 A. 9509 the sale or use of tangible personal property if the purchaser or user, in the performance of a contract, later incorporates that tangible personal property into real property located outside this state, (2) on the sale or use of tangible personal property purchased in bulk, or any portion thereof, which is stored and not used by the purchaser or user within this state if that property is subsequently reshipped by such purchaser or user to a point outside this state for use outside this state, (3) on the sale to or use by a contractor or subcontractor of tangible personal property if that property is used by him solely in the performance of a pre-existing lump sum or unit price construction contract, (4) on the sale or use within this state of tangible personal property, not purchased for resale, if the use of such property in this state is restricted to fabricating such property (including incorporat- ing it into or assembling it with other tangible personal property), processing, printing or imprinting such property and such property is then shipped to a point outside this state for use outside this state, [(5) on the sale to or use by a veterinarian of drugs or medicine if such drugs or medicine are used by such veterinarian in rendering services, which are exempt pursuant to subdivision (f) of section eleven hundred fifteen of this chapter, to livestock or poultry used in the production for sale of tangible personal property by farming or if such drugs or medicine are sold to a person qualifying for the exemption provided for in paragraph (6) of subdivision (a) of section eleven hundred fifteen of this chapter for use by such person on such livestock or poultry,] or (6) on the sale of tangible personal property purchased for use in constructing, expanding or rehabilitating industrial or commercial real property (other than property used or to be used exclu- sively by one or more registered vendors primarily engaged in the retail sale of tangible personal property) located in an area designated as an empire zone pursuant to article eighteen-B of the general municipal law, but only to the extent that such property becomes an integral component part of the real property. (For the purpose of clause (3) of the preced- ing sentence, the term "pre-existing lump sum or unit price construction contract" shall mean a contract for the construction of improvements to real property under which the amount payable to the contractor or subcontractor is fixed without regard to the costs incurred by him in the performance thereof, and which (i) was irrevocably entered into prior to the date of the enactment of this article or the enactment of a law increasing the rate of tax imposed under this article, or (ii) resulted from the acceptance by a governmental agency of a bid accompa- nied by a bond or other performance guaranty which was irrevocably submitted prior to such date.) Where the tax on the sale or use of such tangible personal property has been paid to the vendor, to qualify for such refund or credit, such tangible personal property must be incorpo- rated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was payable to the tax commission by the vendor pursuant to section eleven hundred thirty-seven. Where the tax on the sale or use of such tangible personal property was paid by the applicant for the credit or refund directly to the tax commission, to qualify for such refund or credit, such tangible personal property must be incorporated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was paya- ble to the tax commission by such applicant pursuant to this article. An S. 7509 39 A. 9509 application for a refund or credit pursuant to this section must be filed with such commission within the time provided by subdivision (a) of section eleven hundred thirty-nine. Such application shall be in such form as the tax commission may prescribe. Where an application for cred- it has been filed, the applicant may immediately take such credit on the return which is due coincident with or immediately subsequent to the time that he files his application for credit. However, the taking of the credit on the return shall be deemed to be part of the application for credit and shall be subject to the provisions in respect to applica- tions for credit in section eleven hundred thirty-nine as provided in subdivision (e) of such section. With respect to a sale or use described in clause (3) above where a pre-existing lump sum or unit price construction contract was irrevocably entered into prior to the date of the enactment of this article or the bid accompanied by the performance guaranty was irrevocably submitted to the governmental agency prior to such date, the purchaser or user shall be entitled to a refund or credit only of the amount by which the tax on such sale or use imposed under this article plus any tax imposed under the authority of article twen- ty-nine exceeds the amount computed by applying against such sale or use the local rate of tax, if any, in effect at the time such contract was entered into or such bid was submitted. In the case of the enactment of a law increasing the rate of tax imposed by this article, the purchaser or user shall be entitled only to a refund or credit of the amount by which the increased tax on such sale or use imposed under this article plus any tax imposed under the author- ity of article twenty-nine exceeds the amount computed by applying against such sale or use the state and local rates of tax in effect at the time such contract was entered into or such bid was submitted. § 3. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART X Section 1. Subdivision 1 of section 1131 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; and every operator of a hotel. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liabil- ity company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, OR HAS SO ACTED; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one OF THIS ARTICLE shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 2. Subdivision (a) of section 1133 of the tax law, as amended by chapter 621 of the laws of 1967, is amended to read as follows: S. 7509 40 A. 9509 (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI- SION AND IN section eleven hundred thirty-seven OF THIS PART, every person required to collect any tax imposed by this article shall be personally liable for the tax imposed, collected or required to be collected under this article. Any such person shall have the same right in respect to collecting the tax from his customer or in respect to nonpayment of the tax by the customer as if the tax were a part of the purchase price of the property or service, amusement charge or rent, as the case may be, and payable at the same time; provided, however, that the tax commission shall be joined as a party in any action or proceed- ing brought to collect the tax. (2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE: (I) THE COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A MEMBER OF A LIMITED LIABILITY COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH LIMITED PARTNER OR MEMBER WAS NOT UNDER A DUTY TO ACT FOR SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR RELIEF TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS HAS ACTED ON BEHALF OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER OR WHO HAS A PAST-DUE LIABILITY, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER. (II) SUCH LIMITED PARTNER OR MEMBER MUST SUBMIT AN APPLICATION FOR RELIEF, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN ALL MATERIAL RESPECTS. PROVIDING MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH APPLICATION SHALL DISQUALIFY SUCH LIMITED PARTNER OR MEMBER FOR THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY AGREEMENT WITH THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING STRICT LIABILITY FOR THE TOTAL AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI- VISION. (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT- ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA- GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE COMMISSIONER, SHALL BE LIABLE FOR THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX LIABILITY OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY THAT REFLECTS SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY, WHICHEVER IS HIGHER. SUCH ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO AND INCLUDING THE DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SECTION ELEVEN HUNDRED FORTY-TWO OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA- NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF; AND (C) ANY PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT THE TIME SUCH S. 7509 41 A. 9509 PAYMENT WAS MADE. PROVIDED, HOWEVER, SUCH LIMITED PARTNER OR MEMBER SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS OR MEMBERS OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO ARE ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY SHALL NOT EXCEED THE TOTAL LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. § 3. This act shall take effect immediately. PART Y Section 1. Paragraph 1 of subdivision (a) of section 1115 of the tax law, as amended by section 1 of part II of chapter 59 of the laws of 2014, is amended to read as follows: (1) (A) Food, food products, beverages, dietary foods and health supplements, sold for human consumption but not including (i) candy and confectionery, (ii) fruit drinks which contain less than seventy percent of natural fruit juice, (iii) soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol- ic beverages, all of which shall be subject to the retail sales and compensating use taxes, whether or not the item is sold in liquid form. NOTHING IN THIS SUBPARAGRAPH SHALL BE CONSTRUED AS EXEMPTING FOOD OR DRINK FROM THE TAX IMPOSED UNDER SUBDIVISION (D) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE. [The] (B) UNTIL MAY THIRTY FIRST, TWO THOUSAND TWENTY, THE food and drink excluded from the exemption provided by [this paragraph under subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH (A) of this paragraph, AND BOTTLED WATER, shall be exempt under this [paragraph] SUBPARAGRAPH when sold for one dollar and fifty cents or less through any vending machine [activated by the use of] THAT ACCEPTS coin[,] OR currency[, credit card or debit card] ONLY OR WHEN SOLD FOR TWO DOLLARS OR LESS THROUGH ANY VENDING MACHINE THAT ACCEPTS ANY FORM OF PAYMENT OTHER THAN COIN OR CURRENCY, WHETHER OR NOT IT ALSO ACCEPTS COIN OR CURRENCY. [With the exception of the provision in this paragraph provid- ing for an exemption for certain food or drink sold for one dollar and fifty cents or less through vending machines, nothing herein shall be construed as exempting food or drink from the tax imposed under subdivi- sion (d) of section eleven hundred five of this article.] § 2. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART Z Section 1. Section 2 of subpart R of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the expiration of the authorization to the county of Genesee to impose an additional one percent of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding any other provision of law to the contrary, the one percent increase in sales and compensating use taxes authorized for the county of Genesee until November 30, [2019] 2020 pursuant to clause S. 7509 42 A. 9509 (20) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, shall be divided in the same manner and proportion as the existing three percent sales and compensating use taxes in such county are divided. § 2. Section 2 of subpart Z of part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes by the county of Monroe, is amended to read as follows: § 2. Notwithstanding the provisions of subdivisions (b) and (c) of section 1262 and section 1262-g of the tax law, net collections, as such term is defined in section 1262 of the tax law, derived from the imposi- tion of sales and compensating use taxes by the county of Monroe at the additional rate of one percent as authorized pursuant to clause (25) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, which are in addition to the current net collections derived from the imposition of such taxes at the three percent rate authorized by the opening paragraph of section 1210 of the tax law, shall be distributed and allocated as follows: for the period of December 1, 2017 through November 30, [2019] 2020 in cash, five percent to the school districts in the area of the county outside the city of Rochester, three percent to the towns located within the county, one and one-quarter percent to the villages located within the county, and ninety and three-quarters percent to the city of Rochester and county of Monroe. The amount of the ninety and three-quarters percent to be distributed and allocated to the city of Rochester and county of Monroe shall be distributed and allocated to each so that the combined total distribution and allocation to each from the sales tax revenues pursuant to sections 1262 and 1262-g of the tax law and this section shall result in the same total amount being distributed and allocated to the city of Rochester and county of Monroe. The amount so distributed and allocated to the county shall be used for county purposes. The foregoing cash payments to the school districts shall be allocated on the basis of the enrolled public school pupils, thereof, as such term is used in subdivision (b) of section 1262 of the tax law, residing in the county of Monroe. The cash payments to the towns located within the county of Monroe shall be allocated on the basis of the ratio which the population of each town, exclusive of the population of any village or portion thereof located within a town, bears to the total population of the towns, exclusive of the population of the villages located within such towns. The cash payments to the villages located within the county shall be allocated on the basis of the ratio which the population of each village bears to the total population of the villages located within the county. The term population as used in this section shall have the same meaning as used in subdivision (b) of section 1262 of the tax law. § 3. Section 3 of subpart EE of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authorization of the county of Onondaga to impose an additional rate of sales and compen- sating use taxes, is amended to read as follows: § 3. Notwithstanding any contrary provision of law, net collections from the additional one percent rate of sales and compensating use taxes which may be imposed by the county of Onondaga during the period commencing December 1, 2018 and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall not be subject to any revenue distribution agreement entered into under subdi- vision (c) of section 1262 of the tax law, but shall be allocated and S. 7509 43 A. 9509 distributed or paid, at least quarterly, as follows: (i) 1.58% to the county of Onondaga for any county purpose; (ii) 97.79% to the city of Syracuse; and (iii) .63% to the school districts in accordance with subdivision (a) of section 1262 of the tax law. § 4. Section 2 of subpart GG of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authority of the county of Orange to impose an additional rate of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, net collections from any additional rate of sales and compensating use taxes which may be imposed by the county of Orange during the period commencing December 1, 2017, and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall be paid to the county of Orange and shall be used by such county solely for county purposes and shall not be subject to any revenue distribution agreement entered into pursuant to the authority of subdivision (c) of section 1262 of the tax law. § 5. This act shall take effect immediately and shall be deemed to have been in full force and effect on June 29, 2017. PART AA Section 1. Section 1101 of the tax law is amended by adding a new subdivision (e) to read as follows: (E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE AND BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH MARKETPLACE SELLER OR SELLERS. A PERSON "FACILITATES A SALE OF TANGIBLE PERSONAL PROPERTY" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (I) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, BOOTH, CATALOG, AN INTERNET WEBSITE, OR SIMILAR FORUM; AND (II) SUCH PERSON OR AN AFFILIATE OF SUCH PERSON COLLECTS THE RECEIPTS PAID BY A CUSTOMER TO A MARKETPLACE SELLER FOR A SALE OF TANGIBLE PERSONAL PROPERTY, OR CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR PURPOSES OF THIS PARAGRAPH, TWO PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN THE OTHER, OR WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER. NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH, A PERSON WHO FACILI- TATES SALES EXCLUSIVELY BY MEANS OF THE INTERNET IS NOT A MARKETPLACE PROVIDER FOR A SALES TAX QUARTER WHEN SUCH PERSON CAN SHOW THAT IT HAS FACILITATED LESS THAN ONE HUNDRED MILLION DOLLARS OF SALES ANNUALLY FOR EVERY CALENDAR YEAR AFTER TWO THOUSAND SIXTEEN. (2) MARKETPLACE SELLER. ANY PERSON, WHETHER OR NOT SUCH PERSON IS REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET- PLACE PROVIDER UNDER WHICH THE MARKETPLACE PROVIDER WILL FACILITATE SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF PARAGRAPH ONE OF THIS SUBDIVISION. § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap- ter 576 of the laws of 1994, is amended to read as follows: S. 7509 44 A. 9509 (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; [and] every operator of a hotel, AND EVERY MARKETPLACE PROVIDER WITH RESPECT TO SALES OF TANGIBLE PERSONAL PROPERTY IT FACILITATES AS DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liability compa- ny, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corpo- ration, partnership, limited liability company or individual proprietor- ship in complying with any requirement of this article; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 3. Section 1132 of the tax law is amended by adding a new subdivi- sion (l) to read as follows: (L)(1) A MARKETPLACE PROVIDER WITH RESPECT TO A SALE OF TANGIBLE PERSONAL PROPERTY IT FACILITATES: (I) SHALL HAVE ALL THE OBLIGATIONS AND RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING, BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE OF AUTHORITY, TO COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF- ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY SUBDIVISION (E) OF THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE PROVISIONS OF SUCH SUBDIVISIONS; AND (II) SHALL KEEP SUCH RECORDS AND INFORMATION AND COOPERATE WITH THE COMMISSIONER TO ENSURE THE PROPER COLLECTION AND REMITTANCE OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER. (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY TO COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH SALE IN ITS TAXABLE RECEIPTS FOR PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART IF, IN REGARD TO SUCH SALE: (I) THE MARKETPLACE SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY THE MARKETPLACE SELLER FACILITATED BY SUCH MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (II) ANY FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER PROVIDING THE MARKETPLACE PROVIDER WITH INCORRECT INFORMATION. THIS PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIF- ICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH S. 7509 45 A. 9509 CERTIFICATE OF COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE MARKETPLACE SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF TANGIBLE PERSONAL PROPERTY BY A MARKETPLACE SELLER THAT ARE FACILITATED BY A MARKETPLACE PROVIDER WHO IS AFFILIATED WITH SUCH MARKETPLACE SELLER WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, THE MARKETPLACE SELLER SHALL BE DEEMED LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS PART. (3) THE COMMISSIONER MAY, IN HIS OR HER DISCRETION: (I) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A MARKETPLACE PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM SUCH MARKET- PLACE PROVIDER FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY, WITH RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY OCCURS IN THE STATE; AND (II) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE PROVIDER AND MARKETPLACE SELLER WILL HAVE THE SAME EFFECT AS A MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION. § 4. Section 1133 of the tax law is amended by adding a new subdivi- sion (f) to read as follows: (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR- MATION GIVEN TO THE MARKETPLACE PROVIDER BY THE MARKETPLACE SELLER. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE SELLER AND THE MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 46 of part K of chapter 61 of the laws of 2011, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE MARKETPLACE SELLER HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF- ICATE OF COLLECTION FROM THE MARKETPLACE PROVIDER OR THE MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THEMSELVES AND SUCH MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIR- TY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY IS ACCURATE. S. 7509 46 A. 9509 § 6. Section 1142 of the tax law is amended by adding two new subdivi- sions 15 and 16 to read as follows: 15. TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAS BEEN REVOKED AND, IF NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHER- WISE THAT A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF THE DUTY TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER ONLY IF, IN ADDITION TO THE CONDITIONS PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY. 16. TO ENFORCE THE PENALTIES IMPOSED ON NON-COLLECTING SELLERS AND NON-COLLECTING MARKETPLACE PROVIDERS PROVIDED BY SUBDIVISION (I) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART BY COMMENCING A PROCEED- ING UNDER ARTICLE SEVENTY-TWO OF THE CIVIL PRACTICE LAW AND RULES. THIS MEANS ENFORCING SUCH PENALTIES IS IN ADDITION TO ANY OTHER LAWFUL MEANS THE COMMISSIONER MAY USE TO ENFORCE SUCH PENALTIES. THE VENUE FOR SUCH PROCEEDING SHALL BE ALBANY COUNTY. § 7. The tax law is amended by adding a new section 1135-a to read as follows: § 1135-A. REPORTING REQUIREMENTS. (A) (1) THE FOLLOWING DEFINITIONS APPLY TO THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER: (A) NON-COLLECTING SELLER MEANS A PERSON WHO MAKES SALES OF TANGIBLE PERSONAL PROPERTY, THE USE OF WHICH IS TAXED BY THIS ARTICLE, BUT WHO IS NOT REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY PURPORTEDLY AS TAX IMPOSED BY THIS ARTICLE IN REGARD TO TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE. (B) NON-COLLECTING MARKETPLACE PROVIDER MEANS A MARKETPLACE PROVIDER, AS DEFINED BY SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, WHO IS NOT REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY PURPORTEDLY AS TAX IMPOSED BY THIS ARTICLE IN REGARD TO TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE. (C) NEW YORK PURCHASER MEANS ANY PERSON WHO PURCHASES TANGIBLE PERSONAL PROPERTY FOR DELIVERY TO A LOCATION IN THIS STATE. (D) LAST KNOWN ADDRESS OF A NEW YORK PURCHASER MEANS, FOR PURPOSES OF THIS SUBDIVISION, SUBDIVISION SIXTEEN OF SECTION ELEVEN HUNDRED FORTY- TWO, AND SUBDIVISION (I) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART, THE PURCHASER'S BILLING ADDRESS OR, IF UNKNOWN, THE PURCHASER'S SHIPPING ADDRESS. IF NO BILLING OR SHIPPING ADDRESS IS KNOWN, THIS TERM SHALL MEAN THE PURCHASER'S LAST KNOWN E-MAIL ADDRESS. (2) THE FOLLOWING REQUIREMENTS APPLY TO A NON-COLLECTING SELLER: (A) A NON-COLLECTING SELLER'S RECORDS SHALL BE MADE AVAILABLE TO THE COMMISSIONER UPON REQUEST. THESE RECORDS SHALL INCLUDE, BUT ARE NOT LIMITED TO, EACH NEW YORK PURCHASER'S NAME AND LAST KNOWN ADDRESS AS DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS SUBDIVISION, AND THE TOTAL OF THE NON-COLLECTING SELLER'S RECEIPTS FROM THE PURCHASES OF THE NEW YORK PURCHASER. (B) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL FILE AN ANNUAL INFORMATION RETURN WITH THE COMMISSIONER. SUCH RETURN SHALL INCLUDE THE TOTAL OF THE NON- COLLECTING SELLER'S RECEIPTS FROM PURCHASES OF TANGIBLE PERSONAL PROPER- TY THAT WAS DELIVERED TO A LOCATION IN THIS STATE FOR THE CALENDAR YEAR COVERED BY THE RETURN, TOGETHER WITH SUCH OTHER INFORMATION THE COMMIS- S. 7509 47 A. 9509 SIONER MAY PRESCRIBE. SUCH RETURN SHALL BE FILED ON OR BEFORE JANUARY THIRTY-FIRST OF EACH YEAR AND SHALL COVER THE PRIOR CALENDAR YEAR, WITH THE FIRST SUCH RETURN DUE ON JANUARY THIRTY-FIRST, TWO THOUSAND TWENTY FOR THE CALENDAR YEAR TWO THOUSAND NINETEEN. (C) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL PROVIDE AN ANNUAL STATEMENT OF PURCHASES TO EACH NEW YORK PURCHASER FOR PURCHASES OF TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE FROM SUCH SELLER DURING THE CALENDAR YEAR COVERED BY THE STATEMENT. SUCH ANNUAL STATEMENT SHALL INCLUDE: (I) A STATEMENT THAT SALES OR USE TAX WAS NOT COLLECTED ON THE PURCHASER'S TRANSACTIONS IN THE PRIOR CALENDAR YEAR AND THAT THE PURCHASER MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSION- ER; (II) A LIST OF TRANSACTIONS ENTERED INTO DURING THE PRIOR CALENDAR YEAR BY SUCH PURCHASER FOR DELIVERY TO A LOCATION INTO THIS STATE SHOW- ING, THE DATE OF EACH PURCHASE, A GENERAL DESCRIPTION OF EACH ITEM PURCHASED, AND THE AMOUNT PAID FOR EACH ITEM, INCLUDING ANY SHIPPING OR DELIVERY CHARGES; (III) INSTRUCTIONS FOR OBTAINING ADDITIONAL INFORMA- TION REGARDING WHETHER AND HOW TO REMIT THE SALES OR USE TAX TO THE COMMISSIONER; AND (IV) A STATEMENT THAT SUCH SELLERS MAY BE REQUIRED TO ANNUALLY REPORT THE AGGREGATE DOLLAR VALUE OF THE PURCHASER'S PURCHASES TO THE COMMISSIONER. SUCH STATEMENT SHALL BE SENT TO EACH NEW YORK PURCHASER ON OR BEFORE JANUARY THIRTY-FIRST OF EACH YEAR, STARTING IN THE YEAR TWO THOUSAND TWENTY, COVERING SALES MADE IN THE PRIOR CALENDAR YEAR. SUCH STATEMENT SHALL BE SENT BY MAIL IN AN ENVELOPE BEARING THE STATEMENT "IMPORTANT TAX INFORMATION" TO THE NEW YORK PURCHASER'S LAST KNOWN ADDRESS AS DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS SUBDIVISION, UNLESS THE PURCHASER'S LAST KNOWN ADDRESS IS AN E-MAIL ADDRESS, IN WHICH CASE THE STATEMENT IS TO BE SENT BY E-MAIL, THE SUBJECT LINE OF WHICH SHALL STATE "IMPORTANT TAX INFORMATION". (D) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL PROMINENTLY DISPLAY A NOTICE ON ALL ORDER FORMS, AND UPON EACH SALES RECEIPT OR OTHER MEMORANDUM OF THE PRICE, WHETHER ELECTRONIC OR ON PAPER, PROVIDED TO A NEW YORK PURCHASER MAKING A PURCHASE OF TANGIBLE PERSONAL PROPERTY TO BE DELIVERED TO A LOCATION IN THIS STATE, INCLUDING ANY SCREEN THAT SUMMARIZES THE TRANS- ACTION PRIOR TO THE COMPLETION OF THE SALE. SUCH NOTICE SHALL INDICATE THAT NEITHER NEW YORK STATE AND LOCAL SALES NOR USE TAX IS BEING COLLECTED OR REMITTED UPON THE TRANSACTION, AND THAT THE PURCHASER MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSIONER. (3) A NON-COLLECTING SELLER SHALL KEEP RECORDS OF THE INFORMATION DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF PARAGRAPH TWO OF THIS SUBDIVISION, ALONG WITH PROOF THAT IT HAS PROVIDED PURCHASERS WITH ANY PER-PURCHASE NOTICES OR ANNUAL STATEMENTS OF PURCHASES REQUIRED. THE NON-COLLECTING SELLER SHALL KEEP SUCH RECORDS FOR SUCH PERIODS AND IN SUCH MANNER AS PRESCRIBED FOR RECORDS REQUIRED TO BE MAINTAINED UNDER SUBDIVISIONS (A) AND (G) OF SECTION ELEVEN HUNDRED THIRTY-FIVE OF THIS PART, OR AS THE COMMISSIONER MAY OTHERWISE REQUIRE BY REGULATION. THE NON-COLLECTING SELLER SHALL MAKE THOSE RECORDS AVAILABLE FOR INSPECTION AND EXAMINATION AT ANY TIME UPON DEMAND BY THE COMMISSIONER. (4) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER FOR ANY CALENDAR YEAR IN WHICH THE NON-COLLECTING SELLER'S RECEIPTS FROM ALL NEW YORK PURCHASERS ARE LESS THAN FIVE MILLION DOLLARS DURING THE PRIOR CALENDAR YEAR. (5) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER IN S. 7509 48 A. 9509 REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE IF, THE NON-COLLECTING SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY: (A) A MARKETPLACE PROVIDER FROM WHOM SUCH NON-COLLECTING SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION AS DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART; OR (B) A NON-COLLECTING MARKETPLACE PROVIDER WHO FULFILLED THE REQUIREMENTS OF SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION ON ITS BEHALF. (B) (1) A NON-COLLECTING MARKETPLACE PROVIDER SHALL PERFORM THE REQUIREMENTS IN PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION ON BEHALF OF A NON-COLLECTING SELLER FOR ALL SALES IT FACILITATES FOR SUCH NON-COLLECTING SELLER. (2) NON-COLLECTING MARKETPLACE PROVIDERS SHALL ALSO PROVIDE NOTICE TO ALL NON-COLLECTING SELLERS FOR WHOM THEY FACILITATE SALES OF TANGIBLE PERSONAL PROPERTY THAT IS DELIVERED TO A LOCATION IN THIS STATE, SUCH NOTICE SHALL INCLUDE THE FOLLOWING INFORMATION: (A) SUCH SELLERS MAY BE REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND COLLECT THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER, OR, WHERE SUCH SELLERS ARE NOT REQUIRED TO OBTAIN A CERTIFICATE AND COLLECT TAX, THAT SUCH SELLERS ARE REQUIRED TO COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH; (B) THE NON-COLLECTING MARKETPLACE PROVIDER WILL PROVIDE EACH SELLER'S NAME, ADDRESS AND AGGREGATE AMOUNT OF SALES DELIVERED TO A LOCATION IN THIS STATE TO THE COMMISSIONER UPON REQUEST; AND (C) THE NON-COLLECTING MARKETPLACE PROVIDER IS REPORTING THE INFORMA- TION AND SENDING THE NOTICES REQUIRED BY SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION ON BEHALF OF THE NON-COLLECTING SELLER FOR SUCH SALE IF IT WAS FACILITATED BY SUCH NON- COLLECTING MARKETPLACE PROVIDER. (C) THE COMMISSIONER MAY, IN THEIR DISCRETION, MODIFY, WITHOUT ADDING TO, THE INFORMATION OTHERWISE REQUIRED TO BE INCLUDED IN THE INFORMATION RETURN, ANNUAL STATEMENT OF PURCHASES, OR PER-PURCHASE NOTICE REQUIRED BY THIS SUBDIVISION IF OTHER STATES IMPOSE SIMILAR REQUIREMENTS, IN ORDER TO FACILITATE THE COMPLIANCE OF NON-COLLECTING SELLERS. § 8. Subdivision (i) of section 1145 of the tax law, as added by section 2 of subpart G of part V-1 of chapter 57 of the laws of 2009, is amended to read as follows: (i)(1) Every person required to file an information return by SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section eleven hundred thirty-six of this part, OR AN ANNUAL STATEMENT OR NOTICE REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART who [(A)] fails to provide any of the information required [by paragraph one or two of subdivision (i) of section eleven hundred thirty-six of this part for a vendor, operator, or recipient] TO BE PROVIDED IN SUCH INFORMATION RETURN OR NOTICE, OR WHO FAILS TO PERFORM THE REQUIREMENTS OF PARAGRAPH TWO OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART, or who fails to include any such information that is true and correct [(whether or not such a report is filed) for a vendor, operator, or recipient, or (B) fails to provide the information required by para- graph four of subdivision (i) of section eleven hundred thirty-six of this part to a vendor, operator, or recipient specified in paragraph four of subdivision (i) of section eleven hundred thirty-six of this part], will, in addition to any other penalty provided in this article or otherwise imposed by law, be subject to a penalty of five hundred S. 7509 49 A. 9509 dollars for ten or fewer failures, and up to fifty dollars for each additional failure. (2) Every person failing to file an information return required by SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section elev- en hundred thirty-six OF THIS PART OR AN ANNUAL STATEMENT OR NOTICE BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A of this part within the time required [by subdivision (i) of section eleven hundred thirty-six of this part], will, in addition to any other penalty provided for in this article or otherwise imposed by law, be subject to a penalty in an amount not to exceed two thousand dollars for each such failure, provided that the minimum penalty under this paragraph is five hundred dollars. (3) In no event will the penalty imposed by paragraph one of this subdivision, or the aggregate of the penalties imposed under paragraphs one and two of this subdivision, exceed ten thousand dollars for any annual filing period [as described by paragraph three of subdivision (i) of section eleven hundred thirty-six of this part]. (4) If the commissioner determines that any of the failures that are subject to penalty under this subdivision was entirely due to reasonable cause and not due to willful neglect, the commissioner must remit the penalty imposed under this subdivision. These penalties will be deter- mined, assessed, collected, paid, disposed of and enforced in the same manner as taxes imposed by this article and all the provisions of this article relating thereto will be deemed also to refer to these penal- ties. § 9. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section, or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section, or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provision had not been included herein. § 10. This act shall take effect immediately and shall apply to sales made on or after September 1, 2018; provided, however, that the require- ments in subparagraphs (B) and (C) of paragraph 2 of subdivision (a) of section 1135-a as added by section two of this act shall apply to sales made on or after January 1, 2019. PART BB Section 1. Subdivision 2 of section 470 of the tax law, as amended by section 15 of part D of chapter 134 of the laws of 2010, is amended to read as follows: 2. "Tobacco products." Any cigar, including [a] little [cigar] CIGARS, VAPOR PRODUCTS, or tobacco, other than cigarettes, intended for consump- tion by smoking, chewing, INHALING VAPORS or as snuff. § 2. Subdivision 12 of section 470 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 12. "Distributor." Any person who imports or causes to be imported into this state any tobacco product (in excess of fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT) for sale, or who manufactures any tobacco product in this state, and any person within or without the state who is authorized by the commissioner of S. 7509 50 A. 9509 taxation and finance to make returns and pay the tax on tobacco products sold, shipped or delivered by him to any person in the state. § 3. Section 470 of the tax law is amended by adding a new subdivision 20 to read as follows: 20. "VAPOR PRODUCT." ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO A FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR, ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL DEVICE, OR APPROVED FOR USE PURSUANT TO SECTION THREE THIRTY-THREE HUNDRED SIXTY-TWO OF THE PUBLIC HEALTH LAW. § 4. Paragraph (a) of subdivision 1 of section 471-b of the tax law, as amended by section 18 of part D of chapter 134 of the laws of 2010, is amended to read as follows: (a) Such tax on tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS shall be at the rate of seventy-five percent of the wholesale price, and is intended to be imposed only once upon the sale of any tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS. § 5. Subdivision 1 of section 471-b of the tax law is amended by adding a new paragraph (d) to read as follows: (D) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER FLUID MILLILITER, OR PART THEREOF, OF THE VAPOR PRODUCT. ALL INVOICES FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE AMOUNT OF VAPOR PRODUCT IN MILLILITERS. § 6. Subdivision (a) of section 471-c of the tax law, as amended by section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs (i) and (ii) as amended by section 20 and paragraph (iii) as added by section 21 of part D of chapter 134 of the laws of 2010, is amended to read as follows: (a) There is hereby imposed and shall be paid a tax on all tobacco products used in the state by any person, except that no such tax shall be imposed (1) if the tax provided in section four hundred seventy-one-b of this article is paid, or (2) on the use of tobacco products which are exempt from the tax imposed by said section, or (3) on the use of two hundred fifty cigars or less, [or] five pounds or less of tobacco other than roll-your-own tobacco, [or] thirty-six ounces or less of roll-your- own tobacco OR FIVE HUNDRED MILLILITERS OR LESS OF VAPOR PRODUCT brought into the state on, or in the possession of, any person. (i) Such tax on tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS shall be at the rate of seventy-five percent of the wholesale price. (ii) Such tax on snuff shall be at the rate of two dollars per ounce and a proportionate rate on any fractional parts of an ounce, provided that cans or packages of snuff with a net weight of less than one ounce shall be taxed at the equivalent rate of cans or packages weighing one ounce. Such tax shall be computed based on the net weight as listed by the manufacturer. (iii) Such tax on little cigars shall be at the same rate imposed on cigarettes under this article and is intended to be imposed only once upon the sale of any little cigars. (IV) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER FLUID MILLILITER OF THE VAPOR PRODUCT. ALL INVOICES FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE AMOUNT OF VAPOR PRODUCT IN MILLILITERS. S. 7509 51 A. 9509 § 7. Subdivision 2 of section 474 of the tax law, as amended by chap- ter 552 of the laws of 2008, is amended to read as follows: 2. Every person who shall possess or transport more than two hundred fifty cigars, [or] more than five pounds of tobacco other than roll- your-own tobacco, [or] more than thirty-six ounces of roll-your-own tobacco OR MORE THAN FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways, roads or streets of the state, shall be required to have in his actual possession invoices or delivery tickets for such tobacco products. Such invoices or delivery tickets shall show the name and address of the consignor or seller, the name and address of the consignee or purchaser, the quantity and brands of the tobacco products transported, and the name and address of the person who has or shall assume the payment of the tax and the wholesale price or the tax paid or payable. The absence of such invoices or delivery tickets shall be prima facie evidence that such person is a dealer in tobacco products in this state and subject to the requirements of this article. § 8. Subdivision 3 of section 474 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 3. Every dealer or distributor or employee thereof, or other person acting on behalf of a dealer or distributor, who shall possess or trans- port more than fifty cigars [or], more than one pound of tobacco OR MORE THAN ONE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways, roads or streets of the state, shall be required to have in his actual possession invoices or delivery tickets for such tobacco products. Such invoices or delivery tickets shall show the name and address of the consignor or seller, the name and address of the consignee or purchaser, the quantity and brands of the tobacco products transported, and the name and address of the person who has or shall assume the payment of the tax and the wholesale price or the tax paid or payable. The absence of such invoices or delivery tickets shall be prima facie evidence that the tax imposed by this article on tobacco products has not been paid and is due and owing. § 9. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481 of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2013, is amended to read as follows: (i) In addition to any other penalty imposed by this article, the commissioner may (A) impose a penalty of not more than six hundred dollars for each two hundred cigarettes, or fraction thereof, in excess of one thousand cigarettes in unstamped or unlawfully stamped packages in the possession or under the control of any person or (B) impose a penalty of not more than two hundred dollars for each ten unaffixed false, altered or counterfeit cigarette tax stamps, imprints or impressions, or fraction thereof, in the possession or under the control of any person. In addition, the commissioner may impose a penalty of not more than seventy-five dollars for each fifty cigars [or] one pound of tobacco[,] OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any person and a penalty of not more than one hundred fifty dollars for each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; provided, however, that any such penalty imposed shall not exceed seven thousand S. 7509 52 A. 9509 five hundred dollars in the aggregate. The commissioner may impose a penalty of not more than seventy-five dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of fifty cigars [or], one pound of tobac- co OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any tobacco products dealer or distributor appointed by the commissioner, and a penalty of not more than one hundred fifty dollars for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any such dealer or distributor, with respect to which the tobacco products tax has not been paid or assumed by a distributor or a tobacco products dealer; provided, however, that any such penalty imposed shall not exceed fifteen thousand dollars in the aggregate. § 10. Items (I) and (II) of clause (B) and items (I) and (II) of clause (C) of subparagraph (ii) of paragraph (b) of subdivision 1 of section 481 of the tax law, as added by chapter 262 of the laws of 2000, are amended to read as follows: (I) not less than twenty-five dollars but not more than one hundred dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLI- LITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; and (II) not less than fifty dollars but not more than two hundred dollars for each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILI- TERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products deal- er; provided, however, that any such penalty imposed under this clause shall not exceed ten thousand dollars in the aggregate. (I) not less than twenty-five dollars but not more than one hundred dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; and (II) not less than fifty dollars but not more than two hundred dollars for each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or a tobacco products dealer; provided, however, that any such penalty imposed under this clause shall not exceed twenty thousand dollars in the aggregate. § 11. Paragraph (a) of subdivision 2 of section 481 of the tax law, as amended by chapter 552 of the laws of 2008, is amended to read as follows: (a) The possession within this state of more than four hundred ciga- rettes in unstamped or unlawfully stamped packages [or], more than two S. 7509 53 A. 9509 hundred fifty cigars, [or] more than five pounds of tobacco other than roll-your-own tobacco, [or] more than thirty-six ounces of roll-your-own tobacco by any person other than an agent or distributor, as the case may be, OR FIVE HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT at any one time shall be presumptive evidence that such cigarettes or tobacco products are subject to tax as provided by this article. § 12. Subdivisions (a) and (h) of section 1814 of the tax law, as amended by section 28 of subpart I of part V-1 of chapter 57 of the laws of 2009, are amended to read as follows: (a) Any person who willfully attempts in any manner to evade or defeat the taxes imposed by article twenty of this chapter or payment thereof on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars or more, [or] (iii) four hundred forty pounds of tobacco or more, (IV) FORTY-FOUR THOUSAND MILLILITERS OF VAPOR PRODUCT OR MORE or has previ- ously been convicted two or more times of a violation of paragraph one of this subdivision shall be guilty of a class E felony. (h) (1) Any dealer, other than a distributor appointed by the commis- sioner [of taxation and finance] under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control more than ten pounds of tobacco [or], more than five hundred cigars OR MORE THAN ONE THOUSAND MILLILITERS OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner [of taxation and finance] under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seven- ty-one-d of this chapter, shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprison- ment not to exceed thirty days. (2) Any person, other than a dealer or a distributor appointed by the commissioner under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control more than fifteen pounds of tobacco [or], more than seven hundred fifty cigars OR MORE THAN FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seventy-one-d of this chap- ter shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprisonment not to exceed thirty days. (3) Any person, other than a distributor appointed by the commissioner under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control twenty-five hundred or more cigars [or],fifty or more pounds of tobacco OR FIVE THOUSAND MILLILITERS OR MORE OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seventy-one-d of this chapter shall be guilty of a misde- meanor. Provided further, that any person who has twice been convicted under this subdivision shall be guilty of a class E felony for any subsequent violation of this section, regardless of the amount of tobac- co products involved in such violation. (4) For purposes of this subdivision, such person shall knowingly transport or have in his custody, possession or under his control tobac- co [or], cigars OR VAPOR PRODUCTS on which such taxes have not been S. 7509 54 A. 9509 assumed paid by a distributor appointed by the commissioner where such person has knowledge of the requirement of the tax on tobacco products and, where to his knowledge, such taxes have not been assumed or paid on such tobacco products by a distributor appointed by the commissioner of taxation and finance. § 13. Subdivisions (a) and (b) of section 1814-a of the tax law, as added by chapter 61 of the laws of 1989, are amended to read as follows: (a) Any person who, while not appointed as a distributor of tobacco products pursuant to the provisions of article twenty of this chapter, imports or causes to be imported into the state more than fifty cigars [or], more than one pound of tobacco[,] OR MORE THAN ONE HUNDRED MILLI- LITERS OF VAPOR PRODUCT for sale within the state, or produces, manufac- tures or compounds tobacco products within the state shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprisonment not to exceed thirty days. If, within any ninety day period, one thousand or more cigars [or five hundred], TWENTY pounds or more of tobacco OR TWO THOUSAND MILLILITERS OR MORE OF VAPOR PRODUCT are imported or caused to be imported into the state for sale within the state or are produced, manufactured or compounded within the state by any person while not appointed as a distributor of tobacco products, such person shall be guilty of a misde- meanor. Provided further, that any person who has twice been convicted under this section shall be guilty of a class E felony for any subse- quent violation of this section, regardless of the amount of tobacco products involved in such violation. (b) For purposes of this section, the possession or transportation within this state by any person, other than a tobacco products distribu- tor appointed by the commissioner of taxation and finance, at any one time of seven hundred fifty or more cigars [or], fifteen pounds or more of tobacco OR FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT shall be presumptive evidence that such tobacco products are possessed or transported for the purpose of sale and are subject to the tax imposed by section four hundred seventy-one-b of this chapter. With respect to such possession or transportation, any provisions of article twenty of this chapter providing for a time period during which the tax imposed by such article may be paid shall not apply. § 14. Subdivision (a) of section 1846-a of the tax law, as amended by chapter 556 of the laws of 2011, is amended to read as follows: (a) Whenever a police officer designated in section 1.20 of the crimi- nal procedure law or a peace officer designated in subdivision four of section 2.10 of such law, acting pursuant to his special duties, shall discover any tobacco products in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT which are being imported for sale in the state where the person importing or caus- ing such tobacco products to be imported has not been appointed as a distributor pursuant to section four hundred seventy-two of this chap- ter, such police officer or peace officer is hereby authorized and empowered forthwith to seize and take possession of such tobacco products. Such tobacco products seized by a police officer or peace officer shall be turned over to the commissioner. Such seized tobacco products shall be forfeited to the state. All tobacco products forfeited to the state shall be destroyed or used for law enforcement purposes, except that tobacco products that violate, or are suspected of violat- ing, federal trademark laws or import laws shall not be used for law enforcement purposes. If the commissioner determines the tobacco products may not be used for law enforcement purposes, the commissioner S. 7509 55 A. 9509 must, within a reasonable time thereafter, upon publication in the state registry of a notice to such effect before the day of destruction, destroy such forfeited tobacco products. The commissioner may, prior to any destruction of tobacco products, permit the true holder of the trademark rights in the tobacco products to inspect such forfeited products in order to assist in any investigation regarding such tobacco products. § 15. Subdivision (b) of section 1847 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (b) Any peace officer designated in subdivision four of section 2.10 of the criminal procedure law, acting pursuant to his special duties, or any police officer designated in section 1.20 of the criminal procedure law may seize any vehicle or other means of transportation used to import tobacco products in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT for sale where the person importing or causing such tobacco products to be imported has not been appointed a distributor pursuant to section four hundred seventy-two of this chapter, other than a vehicle or other means of transportation used by any person as a common carrier in transaction of business as such common carrier, and such vehicle or other means of transportation shall be subject to forfeiture as hereinafter in this section provided. § 16. This act shall take effect on the one hundred eightieth day after it shall have become a law, and shall apply to vapor products that first become subject to taxation under article 20 of the tax law on or after such date. PART CC Section 1. The tax law is amended by adding a new article 20-C to read as follows: ARTICLE 20-C OPIOID EPIDEMIC SURCHARGE SECTION 492. DEFINITIONS. 493. IMPOSITION OF SURCHARGE. 494. RETURNS TO BE SECRET. § 492. DEFINITIONS. WHEN USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "OPIOID" SHALL MEAN AN "OPIATE" AS DEFINED BY SUBDIVISION TWENTY- THREE OF SECTION THIRTY-THREE HUNDRED TWO OF THE PUBLIC HEALTH LAW, AND ANY NATURAL, SYNTHETIC, OR SEMISYNTHETIC "NARCOTIC DRUG" AS DEFINED BY SUBDIVISION TWENTY-TWO OF SUCH SECTION, THAT HAS AGONIST, PARTIAL AGON- IST, OR AGONIST/ANTAGONIST MORPHINE-LIKE ACTIVITIES OR EFFECTS SIMILAR TO NATURAL OPIUM ALKALOIDS AND ANY DERIVATIVE, CONGENER, OR COMBINATION THEREOF, LISTED IN SCHEDULES II-IV OF SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW. 2. "UNIT" SHALL MEAN THE DOSAGE FORM OF AN OPIOID-CONTAINING DRUG INCLUDING, BUT NOT LIMITED TO, TABLETS, CAPSULES, SUPPOSITORIES, TOPICAL (TRANSDERMAL), BUCCAL OR ANY OTHER DOSAGE FORM, SUCH AS WEIGHT OR VOLUME. 3. "UNIT STRENGTH" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT, AS MEAS- URED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC. 4. "MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR" SHALL MEAN THAT REFERENCE STANDARD OF A PARTICULAR OPIOID AS IT RELATES IN POTENCY TO MORPHINE AS DETERMINED BY THE COMMISSIONER OF HEALTH. S. 7509 56 A. 9509 5. "MORPHINE MILLIGRAM EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY ITS UNIT STRENGTH MULTIPLIED BY THE MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR OF THE OPIOID CONTAINED IN SUCH UNIT. 6. "ESTABLISHMENT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSOCI- ATION REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSUANT TO SECTION SIXTY-EIGHT HUNDRED EIGHT OR SECTION SIXTY-EIGHT HUNDRED EIGHT-B OF THE EDUCATION LAW, AS WELL AS ANY PERSON, FIRM, CORPORATION OR ASSOCIATION THAT WOULD BE REQUIRED TO BE REGISTERED WITH THE EDUCA- TION DEPARTMENT PURSUANT TO SUCH SECTION SIXTY-EIGHT HUNDRED EIGHT-B BUT FOR THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION. 7. "INVOICE" SHALL MEAN THE INVOICE, SALES SLIP, MEMORANDUM OF SALE, OR OTHER DOCUMENT EVIDENCING A SALE OF AN OPIOID. § 493. IMPOSITION OF SURCHARGE. 1. THERE IS HEREBY IMPOSED A SURCHARGE ON THE SALE OF ANY OPIOID OF TWO CENTS PER MORPHINE MILLIGRAM EQUIVALENT SOLD. SUCH SURCHARGE SHALL BE IMPOSED ON THE FIRST SALE OF SUCH OPIOID IN THE STATE, EXCEPT THAT SUCH SURCHARGE SHALL NOT APPLY WHEN SUCH SALE IS TO ANY PROGRAM OPERATED PURSUANT TO ARTICLE THIRTY-TWO OF THE MENTAL HYGIENE LAW. THIS SURCHARGE SHALL BE CHARGED AGAINST, AND BE PAID BY, THE ESTABLISHMENT MAKING THE FIRST SALE OF SUCH OPIOID IN THE STATE, AND SHALL NOT BE ADDED AS A SEPARATE CHARGE OR LINE ITEM ON ANY INVOICE GIVEN TO THE CUSTOMER OR OTHERWISE PASSED DOWN TO THE CUSTOMER. HOWEVER, AN ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL CLEARLY NOTE ON THE INVOICE FOR THE FIRST SALE OF AN OPIOID IN THE STATE ITS LIABILITY FOR THE SURCHARGE, ALONG WITH ITS NAME, ADDRESS, AND TAXPAYER IDENTIFICATION NUMBER. ALL SALES OF AN OPIOID IN THIS STATE SHALL BE PRESUMED TO BE THE FIRST SALE OF SUCH, AND SHALL ALSO BE PRESUMED TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, UNLESS THE CONTRARY IS ESTABLISHED BY THE SELLER. 2. EVERY ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTI- CLE SHALL FILE WITH THE COMMISSIONER A RETURN, ON FORMS PRESCRIBED BY THE COMMISSIONER, INDICATING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF OPIOIDS IT SOLD IN THE STATE, THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF SUCH OPIOIDS THAT ARE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, THE AMOUNT OF SURCHARGE DUE THEREON, AND SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE DUE ON OR BEFORE THE TWENTIETH DAY OF EACH MONTH, AND SHALL COVER ALL OPIOID SALES IN THE STATE MADE IN THE MONTH PRIOR, EXCEPT THAT THE FIRST RETURN REQUIRED TO BE FILED PURSUANT TO THIS SECTION SHALL BE DUE ON OR BEFORE JANUARY TWENTIETH, TWO THOUSAND NINETEEN AND SHALL COVER ALL OPIOID SALES OCCUR- RING IN THE PERIOD BETWEEN THE EFFECTIVE DATE OF THIS ARTICLE AND DECEM- BER THIRTY-FIRST, TWO THOUSAND EIGHTEEN. EVERY ESTABLISHMENT REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF SURCHARGE DUE FOR THE PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED WHEN DUE, THE SURCHARGE SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED. THE COMMISSIONER MAY REQUIRE THAT THE RETURNS AND PAYMENTS REQUIRED BY THIS ARTICLE BE FILED OR PAID ELECTRONICALLY. 3. ESTABLISHMENTS MAKING SALES OF OPIOIDS IN THIS STATE SHALL MAINTAIN ALL INVOICES PERTAINING TO SUCH SALES FOR SIX YEARS AFTER THE RETURN REPORTING SUCH SALES IS FILED WITH THE COMMISSIONER, UNLESS THE COMMIS- SIONER PROVIDES FOR A DIFFERENT RETENTION PERIOD BY RULE OR REGULATION. THE ESTABLISHMENT SHALL PRODUCE SUCH RECORDS UPON DEMAND BY THE COMMIS- SIONER. 4. WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS RECEIVED UNDER THE PROVISIONS OF THIS ARTICLE WERE PAID IN ERROR, HE OR SHE MAY CAUSE THE SAME TO BE REFUNDED, WITH INTEREST, EXCEPT THAT NO INTEREST S. 7509 57 A. 9509 SHALL BE ALLOWED OR PAID IF THE AMOUNT THEREOF WOULD BE LESS THAN ONE DOLLAR. SUCH INTEREST SHALL BE AT THE OVERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER, OR IF NO RATE IS SET, AT THE RATE OF SIX PERCENT PER ANNUM, FROM THE DATE WHEN THE SURCHARGE, PENALTY OR INTEREST TO BE REFUNDED WAS PAID TO A DATE PRECEDING THE DATE OF THE REFUND CHECK BY NOT MORE THAN THIRTY DAYS. PROVIDED, HOWEVER, THAT FOR THE PURPOSES OF THIS SUBDIVISION, ANY SURCHARGE PAID BEFORE THE LAST DAY PRESCRIBED FOR ITS PAYMENT SHALL BE DEEMED TO HAVE BEEN PAID ON SUCH LAST DAY. SUCH MONEYS RECEIVED UNDER THE PROVISIONS OF THIS ARTICLE THAT THE COMMIS- SIONER SHALL DETERMINE WERE PAID IN ERROR, MAY BE REFUNDED OUT OF FUNDS IN THE CUSTODY OF THE COMPTROLLER TO THE CREDIT OF SUCH SURCHARGES PROVIDED AN APPLICATION THEREFOR IS FILED WITH THE COMMISSIONER WITHIN TWO YEARS FROM THE TIME THE ERRONEOUS PAYMENT WAS MADE. 5. THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR- PORATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE SURCHARGE IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH ARTICLE IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. 6. (A) THE SURCHARGES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE STATE COMPTROLLER, TO THE CREDIT OF THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-AAAAA OF THE STATE FINANCE LAW. AN ACCOUNT MAY BE ESTABLISHED IN ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS WILL BE KEPT SEPARATE AND APART FROM ALL OTHER MONEY IN THE POSSESSION OF THE STATE COMPTROLLER. THE STATE COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE STATE COMPTROLLER SHALL RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS ARTICLE. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNTS IT RECEIVES UNDER THIS ARTICLE, BEFORE DEPOSIT INTO THE TRUST ACCOUNTS DESIGNATED BY THE STATE COMPTROLLER, A REASONABLE AMOUNT NECES- SARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIM- BURSE THE DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT AND DISTRIBUTE THE SURCHARGE IMPOSED BY THIS ARTICLE. (B) ON OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF EACH SUCCEEDING MONTH, AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND DEDUCTING SUCH AMOUNTS FOR SUCH COSTS, AS PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDI- VISION, THE COMMISSIONER SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNT OF ALL REVENUES SO RECEIVED DURING THE PRIOR MONTH BECAUSE OF THE SURCHARGES, INTEREST AND PENALTIES SO IMPOSED. THE AMOUNT OF REVENUES SO CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT INTO THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY- SEVEN-AAAAA OF THE STATE FINANCE LAW. 7. THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH THE COMMISSIONER IN ADMINISTERING THIS SURCHARGE, INCLUDING SHARING WITH THE COMMISSIONER PERTINENT INFORMATION ABOUT ESTABLISHMENTS UPON THE REQUEST OF THE COMMISSIONER. § 494. RETURNS TO BE SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER JUDI- CIAL ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART- S. 7509 58 A. 9509 MENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS PERMIT- TED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT OR A PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFORMATION CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON ENGAGED OR RETAINED BY SUCH DEPARTMENT ON AN INDEPENDENT CONTRACT BASIS OR ANY PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF THE CONTENTS OF A RETURN OR REPORT FILED PURSUANT TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN IN ANY MANNER THE CONTENTS OR ANY OTHER INFORMATION RELATING TO THE BUSINESS OF AN ESTABLISHMENT CONTAINED IN ANY RETURN OR REPORT REQUIRED UNDER THIS ARTICLE. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS OR REPORTS SHALL NOT BE REQUIRED TO PRODUCE ANY OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF OF THE STATE, THE STATE DEPARTMENT OF HEALTH, THE STATE DEPARTMENT OF EDUCATION OR THE COMMISSIONER IN AN ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS CHAPTER OR ON BEHALF OF THE STATE OR THE COMMISSIONER IN ANY OTHER ACTION OR PROCEEDING INVOLVING THE COLLECTION OF A TAX DUE UNDER THIS CHAPTER TO WHICH THE STATE OR THE COMMISSIONER IS A PARTY OR A CLAIMANT OR ON BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEEDING, IN ANY OF WHICH EVENTS THE COURT MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THEREBY AS ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT THE COMMISSIONER, IN HIS OR HER DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR FROM PROVIDING ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT, BY OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF THE STATE DEPARTMENT OF HEALTH OR THE STATE DEPARTMENT OF EDUCATION; NOR TO PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR THE PROVISION OF ANY INFORMATION CONTAINED THEREIN, BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRE- SENTATIVES OF THE STATE WHEN AN ACTION SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAPTER IN WHICH SUCH RETURNS OR REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED; NOR TO PROHIBIT THE COMMISSIONER FROM PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER THIS ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THER- EFROM; NOR TO PROHIBIT THE INSPECTION OF THE RETURNS OR REPORTS REQUIRED UNDER THIS ARTICLE BY THE COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF ANY SURCHARGE PAID BY AN ESTABLISHMENT OR OTHER PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO AN ESTABLISH- MENT, OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH ESTABLISHMENT, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH ESTABLISHMENT PURSUANT TO THIS ARTICLE, NOR TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THEREOF. 2. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION SHALL BE DISMISSED FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A PERIOD OF FIVE YEARS THEREAFTER. (B) A VIOLATION OF THIS ARTICLE SHALL BE CONSIDERED A VIOLATION OF SECRECY PROVISIONS UNDER ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 2. Section 1825 of the tax law, as amended by section 20 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows: S. 7509 59 A. 9509 § 1825. Violation of secrecy provisions of the tax law.--Any person who violates the provisions of [subdivision (b) of section twenty-one,] subdivision one of section two hundred two, subdivision eight of section two hundred eleven, subdivision (a) of section three hundred fourteen, subdivision one or two of section four hundred thirty-seven, section four hundred eighty-seven, SECTION FOUR HUNDRED NINETY-FOUR, subdivision one or two of section five hundred fourteen, subsection (e) of section six hundred ninety-seven, subsection (a) of section nine hundred nine- ty-four, subdivision (a) of section eleven hundred forty-six, section twelve hundred eighty-seven, section twelve hundred ninety-six, subdivi- sion (a) of section fourteen hundred eighteen, subdivision (a) of section fifteen hundred eighteen, subdivision (a) of section fifteen hundred fifty-five of this chapter, and subdivision (e) of section 11-1797 of the administrative code of the city of New York shall be guilty of a misdemeanor. § 3. The state finance law is amended by adding a new section 97-aaaaa to read as follows: § 97-AAAAA. OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMP- TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT OF THE MISCELLANEOUS SPECIAL REVENUE ACCOUNT TO BE KNOWN AS THE "OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT". 2. MONEYS IN THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE. 3. THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL CONSIST OF MONEYS APPROPRIATED FOR THE PURPOSE OF SUCH ACCOUNT, MONEYS TRANS- FERRED TO SUCH ACCOUNT PURSUANT TO LAW, CONTRIBUTIONS CONSISTING OF PROMISES OR GRANTS OF ANY MONEY OR PROPERTY OF ANY KIND OR VALUE, OR ANY OTHER THING OF VALUE, INCLUDING GRANTS OR OTHER FINANCIAL ASSISTANCE FROM ANY AGENCY OF GOVERNMENT AND MONEYS REQUIRED BY THE PROVISIONS OF THIS SECTION OR ANY OTHER LAW TO BE PAID INTO OR CREDITED TO THIS ACCOUNT. THE ACCOUNT SHALL ALSO CONSIST OF MONEYS RECEIVED FROM ANY LITIGATION OR ENFORCEMENT ACTIONS INITIATED AGAINST OPIOID PHARMACEU- TICAL MANUFACTURERS, DISTRIBUTORS AND WHOLESALERS. 4. MONEYS OF THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT, WHEN ALLOCATED, SHALL BE AVAILABLE, SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET, TO SUPPORT PROGRAMS OPERATED BY THE NEW YORK STATE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES OR AGENCIES CERTIFIED, AUTHORIZED, APPROVED OR OTHERWISE FUNDED BY THE NEW YORK STATE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES TO PROVIDE OPIOID TREATMENT, RECOVERY AND PREVENTION AND EDUCATION SERVICES; AND TO PROVIDE SUPPORT FOR THE PRESCRIPTION MONITORING PROGRAM REGISTRY IF ESTABLISHED. 5. AT THE REQUEST OF THE BUDGET DIRECTOR, THE STATE COMPTROLLER SHALL TRANSFER MONEYS TO SUPPORT THE COSTS OF OPIOID TREATMENT, RECOVERY, PREVENTION, EDUCATION SERVICES, AND OTHER RELATED PROGRAMS, FROM THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT TO ANY OTHER FUND OF THE STATE. 6. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL OR SPECIAL LAW, NO MONEYS SHALL BE AVAILABLE FROM THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT UNTIL A CERTIFICATE OF ALLOCATION AND A SCHEDULE OF AMOUNTS TO BE AVAILABLE THEREFOR SHALL HAVE BEEN ISSUED BY THE DIRECTOR OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY OF SUCH CERTIF- S. 7509 60 A. 9509 ICATE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. SUCH CERTIFICATE MAY BE AMENDED FROM TIME TO TIME BY THE DIRECTOR OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY OF SUCH AMENDMENT SHALL BE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. 7. THE MONEYS, WHEN ALLOCATED, SHALL BE PAID OUT OF THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT, PURSUANT TO SUBDIVISION FOUR OF THIS SECTION, AND SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET, ON THE AUDIT AND WARRANT OF THE COMPTROLLER ON VOUCHERS CERTI- FIED OR APPROVED BY (A) THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES OR HIS OR HER DESIGNEE; OR (B) THE COMMISSIONER OF THE DEPARTMENT OF HEALTH OR HIS OR HER DESIGNEE. § 4. This act shall take effect July 1, 2018. PART DD Section 1. The tax law is amended by adding a new section 1521 to read as follows: § 1521. HEALTHCARE INSURANCE WINDFALL PROFIT FEE. (A) IN ADDITION TO ALL TAXES, SURCHARGES, AND FEES IMPOSED UNDER THIS CHAPTER, THE INSUR- ANCE LAW, THE FINANCIAL SERVICES LAW, AND THE PUBLIC HEALTH LAW, THERE IS HEREBY IMPOSED FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER THIR- TY-FIRST, TWO THOUSAND SEVENTEEN, A FOURTEEN PERCENT SURCHARGE ON THE NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN THIS STATE OF EVERY CORPORATION (1) AUTHOR- IZED TO TRANSACT AN INSURANCE BUSINESS IN THIS STATE, OR (2) THAT IS A HEALTH MAINTENANCE ORGANIZATION REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW. (B) FOR PURPOSES OF THIS SECTION, THE TERM "HEALTH INSURANCE" SHALL MEAN COMPREHENSIVE HOSPITAL AND MEDICAL EXPENSE INSURANCE INCLUDING, WITHOUT LIMITATION, COMPREHENSIVE COVERAGE ISSUED BY A HEALTH MAINTE- NANCE ORGANIZATION, DISABILITY INCOME INSURANCE, ACCIDENT INSURANCE, MEDICARE SUPPLEMENT INSURANCE, SPECIFIED DISEASE INSURANCE, DENTAL INSURANCE, VISION INSURANCE, STOP-LOSS INSURANCE, FIXED INDEMNITY INSUR- ANCE, AND HOSPITAL INDEMNITY INSURANCE. (C)(1) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN THIS STATE" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO THE GROSS RECEIPTS. THE COMPUTATION OF "GROSS RECEIPTS FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO GROSS RECEIPTS" SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGULATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. (2) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE OPERA- TION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE OPERATION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO SUCH GROSS RECEIPTS. THE COMPUTATION OF "GROSS RECEIPTS FROM THE OPERATION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO S. 7509 61 A. 9509 GROSS RECEIPTS" SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGU- LATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. (D) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT BE DEDUCTIBLE BY A CORPORATION IN DETERMINING ITS LIABILITY FOR ANY OTHER TAX, SURCHARGE, OR FEE IMPOSED UNDER ANY LAW. (E) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT BE CONSIDERED BY ANY CORPORATION, AND SHALL NOT BE DEEMED TO BE AN EXPENSE, COST, OR LIABILITY, FOR PURPOSES OF ESTAB- LISHING OR SETTING THE RATE TO BE CHARGED FOR ANY HEALTH INSURANCE POLI- CY. (F) THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE CALCULATED BY EACH CORPORATION ON AN ANNUAL BASIS WITHOUT REGARD TO THE ITEMS OF GAIN OR LOSS FROM ANY OTHER PERIOD. (G) (1) THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE POWER, DUTY AND RESPONSIBILITY TO EXAMINE RETURNS OF A CORPORATION FILED WITH HIM OR HER PURSUANT TO THIS SECTION AND, TOGETHER WITH ANY OTHER INFOR- MATION WITHIN HIS OR HER POSSESSION OR THAT MAY COME INTO HIS OR HER POSSESSION, TO ASCERTAIN THE CORRECT AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION OF ANY CORPORATION. FOR THE PURPOSE OF ASCERTAINING THE CORRECTNESS OF ANY SUCH SURCHARGE IMPOSED UNDER THIS SECTION OR FOR THE PURPOSE OF MAKING AN ESTIMATE OF THE SURCHARGE LIABILITY UNDER THIS SECTION OF ANY CORPORATION, THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE POWER TO EXAMINE OR CAUSE TO HAVE EXAMINED BY ANY AGENT OR REPRESENTATIVE DESIGNATED BY HIM OR HER FOR THAT PURPOSE, ANY BOOKS, PAPERS, RECORDS OR MEMORANDA BEARING UPON THE MATTERS REQUIRED TO BE INCLUDED IN THE RETURN. (2) IF THE SUPERINTENDENT OF FINANCIAL SERVICES ASCERTAINS THAT THE AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION AS SHOWN ON THE RETURN OF ANY CORPORATION IS LESS THAN THE AMOUNT OF SURCHARGE DISCLOSED BY HIS OR HER EXAMINATION, HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSION- ER THE ISSUANCE OF A NOTICE OF DEFICIENCY FOR THE AMOUNT DUE. IF A CORPORATION FAILS TO FILE A RETURN WITH THE SUPERINTENDENT OF FINANCIAL SERVICES WITHIN THE TIME REQUIRED FOR THE FILING OF SUCH RETURN (WITH REGARD TO ANY EXTENSION OF TIME FOR THE FILING THEREOF), THE SUPERINTEN- DENT OF FINANCIAL SERVICES SHALL MAKE AN ESTIMATE OF THE AMOUNT OF SURCHARGE DUE FOR THE PERIOD IN RESPECT TO WHICH SUCH CORPORATION FAILED TO FILE THE RETURN. THE ESTIMATE SHALL BE MADE FROM ANY AVAILABLE INFOR- MATION WHICH IS IN THE POSSESSION OR MAY COME INTO THE POSSESSION OF THE SUPERINTENDENT OF FINANCIAL SERVICES AND HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSIONER THE ISSUANCE OF A NOTICE OF DEFICIENCY FOR THE AMOUNT OF SUCH ESTIMATED SURCHARGE. ANY PROPOSAL PURSUANT TO THIS PARAGRAPH SHALL SET FORTH THE BASIS THEREOF AND THE DETAILS OF ITS COMPUTATION. (3) THE COMMISSIONER SHALL, ON RECEIPT OF A PROPOSAL FROM THE SUPER- INTENDENT OF FINANCIAL SERVICES PURSUANT TO PARAGRAPH TWO OF THIS SUBDI- VISION, TAKE APPROPRIATE ACTION UNDER THIS CHAPTER FOR THE ASSESSMENT AND COLLECTION OF THE AMOUNT OF SURCHARGE, TOGETHER WITH INTEREST AND PENALTIES, SHOWN BY SUCH PROPOSAL TO BE DUE. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL BE REQUIRED TO ASSIST THE COMMISSIONER IN DEFENDING THE CORRECTNESS OF THE AMOUNT ASSESSED AT ANY CONFERENCE AT THE BUREAU OF CONCILIATION AND MEDIATION SERVICES AND AT THE DIVISION OF TAX APPEALS. (4) SUBJECT TO THE CONSENT OF THE SUPERINTENDENT OF FINANCIAL SERVICES AND NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY, THE COMMISSIONER MAY DELEGATE SUCH OTHER OF HIS OR HER POWERS AND DUTIES WITH RESPECT TO THE ADMINISTRATION AND COLLECTION OF THE TAXES IMPOSED S. 7509 62 A. 9509 UNDER THIS SECTION TO THE SUPERINTENDENT OF FINANCIAL SERVICES, AS THE COMMISSIONER FINDS NECESSARY IN ORDER TO FACILITATE SUCH ADMINISTRATION AND COLLECTION. (5) THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE AUTHORITY TO ISSUE SUCH RULES AND REGULATIONS THAT ARE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. (H) (1) EVERY CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF THIS SECTION, SHALL ANNUALLY, ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF ITS TAXABLE YEAR, TRANSMIT TO THE SUPERINTENDENT OF FINANCIAL SERVICES A RETURN IN A FORM PRESCRIBED BY THE SUPERINTENDENT OF FINANCIAL SERVICES SETTING FORTH SUCH INFORMATION AS SUCH SUPERINTENDENT MAY PRESCRIBE AND EVERY CORPORATION WHICH CEASES TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS SECTION SHALL TRANSMIT TO THE SUPERINTENDENT OF FINANCIAL SERVICES A RETURN ON THE DATE OF SUCH CESSATION OR AT SUCH OTHER TIME AS SUCH SUPERINTENDENT MAY REQUIRE COVERING EACH YEAR OR PERIOD FOR WHICH NO RETURN WAS THERETOFORE FILED. A COPY OF EACH RETURN REQUIRED UNDER THIS SUBDIVISION SHALL ALSO BE TRANSMITTED TO THE COMMISSIONER AT OR BEFORE THE TIMES SPECIFIED FOR FILING SUCH RETURNS WITH THE COMMISSIONER. (2) EVERY CORPORATION SHALL ALSO TRANSMIT SUCH OTHER RETURNS AND SUCH FACTS AND INFORMATION AS THE SUPERINTENDENT OF FINANCIAL SERVICES MAY REQUIRE IN THE ADMINISTRATION OF THIS SECTION. (3) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY GRANT A REASONABLE EXTENSION OF TIME FOR FILING RETURNS WHENEVER GOOD CAUSE EXISTS. AN AUTOMATIC EXTENSION OF FOUR MONTHS FOR THE FILING OF ITS RETURN SHALL BE ALLOWED ANY CORPORATION, IF WITHIN THE TIME PRESCRIBED BY PARAGRAPH ONE OF THIS SUBDIVISION, SUCH CORPORATION FILES WITH THE SUPERINTENDENT OF FINANCIAL SERVICES AN APPLICATION FOR EXTENSION IN SUCH FORM AS THE SUPERINTENDENT OF FINANCIAL SERVICES MAY PRESCRIBE AND PAYS ON OR BEFORE THE DATE OF SUCH FILING THE AMOUNT PROPERLY ESTIMATED AS ITS SURCHARGE. (4) EVERY RETURN SHALL HAVE ANNEXED THERETO A CERTIFICATION BY THE PRESIDENT, VICE PRESIDENT, TREASURER, ASSISTANT TREASURER, CHIEF ACCOUNTING OFFICER OR ANY OTHER OFFICER OF THE CORPORATION DULY AUTHOR- IZED SO TO ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED THEREIN ARE TRUE. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON A CERTIFICATION OF THE RETURN SHALL BE PRIMA FACIE EVIDENCE THAT SUCH INDIVIDUAL IS AUTHOR- IZED TO SIGN AND CERTIFY THE RETURN ON BEHALF OF THE CORPORATION. (5) EACH CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF THIS SECTION SHALL FILE A SEPARATE RETURN FOR EACH YEAR SUCH CORPORATION IS SUBJECT TO THE SURCHARGE. (6) IN CASE IT SHALL APPEAR TO THE SUPERINTENDENT OF FINANCIAL SERVICES THAT ANY AGREEMENT, UNDERSTANDING OR ARRANGEMENT EXISTS BETWEEN THE CORPORATION AND ANY OTHER ENTITY, PERSON OR FIRM WHEREBY THE ACTIV- ITY, BUSINESS, INCOME OR CAPITAL OF THE CORPORATION IS IMPROPERLY OR INACCURATELY REFLECTED, THE SUPERINTENDENT OF FINANCIAL SERVICES IS AUTHORIZED AND EMPOWERED IN HIS OR HER DISCRETION AND IN SUCH MANNER AS HE OR SHE MAY DETERMINE, TO ADJUST ITEMS OF INCOME, DEDUCTIONS AND CAPI- TAL SO AS EQUITABLY TO DETERMINE THE SURCHARGE. WHERE (A) ANY CORPO- RATION CONDUCTS ITS ACTIVITY OR BUSINESS UNDER ANY AGREEMENT, ARRANGE- MENT OR UNDERSTANDING IN SUCH MANNER AS EITHER DIRECTLY OR INDIRECTLY TO BENEFIT ITS MEMBERS OR STOCKHOLDERS, OR ANY OF THEM, OR ANY PERSON OR PERSONS DIRECTLY OR INDIRECTLY INTERESTED IN SUCH ACTIVITY OR BUSINESS, BY ENTERING INTO ANY TRANSACTION AT MORE OR LESS THAN A FAIR PRICE WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, MIGHT HAVE BEEN PAID OR RECEIVED THEREFOR, OR (B) ANY CORPORATION, A SUBSTANTIAL PORTION OF WHOSE CAPITAL STOCK IS OWNED EITHER DIRECTLY OR INDIRECTLY BY S. 7509 63 A. 9509 ANOTHER CORPORATION, ENTERS INTO ANY TRANSACTION WITH SUCH OTHER CORPO- RATION ON SUCH TERMS AS TO CREATE AN IMPROPER GAIN OR LOSS AMOUNT, THE SUPERINTENDENT OF FINANCIAL SERVICES MAY INCLUDE IN THE CORPORATION'S GAIN SUBJECT TO THE SURCHARGE THE FAIR AMOUNTS, WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, THE CORPORATION MIGHT HAVE DERIVED FROM SUCH TRANSACTION. (I) (1) TO THE EXTENT THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT HAVE BEEN PREVIOUSLY PAID, THE SURCHARGE, OR THE BALANCE THEREOF, SHALL BE PAYABLE TO THE SUPERINTENDENT OF FINANCIAL SERVICES IN FULL AT THE TIME THE CORPORATION'S RETURN IS REQUIRED TO BE FILED. (2) IF THE CORPORATION, WITHIN THE TIME PRESCRIBED BY SUBDIVISION (F) OF THIS SECTION, SHALL HAVE APPLIED FOR AN AUTOMATIC EXTENSION OF TIME TO FILE ITS ANNUAL RETURN AND SHALL HAVE PAID TO THE SUPERINTENDENT OF FINANCIAL SERVICES ON OR BEFORE THE DATE SUCH APPLICATION IS FILED AN AMOUNT PROPERLY ESTIMATED AS PROVIDED BY SAID SUBDIVISION, THE ONLY AMOUNT PAYABLE IN ADDITION TO THE SURCHARGE SHALL BE INTEREST AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBSECTION (E) OF SECTION ONE THOUSAND NINETY-SIX OF THIS CHAPTER OR, IF NO RATE IS SET, AT THE RATE OF SIX PERCENT PER ANNUM UPON THE AMOUNT BY WHICH THE SURCHARGE, OR PORTION THEREOF PAYABLE ON OR BEFORE THE DATE THE RETURN WAS REQUIRED TO BE FILED, EXCEEDS THE AMOUNT SO PAID. FOR THE PURPOSES OF THE PRECEDING SENTENCE: (A) AN AMOUNT SO PAID SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS EITHER (I) NOT LESS THAN NINETY PERCENT OF THE SURCHARGE AS FINALLY DETERMINED, OR (II) NOT LESS THAN THE SURCHARGE SHOWN ON THE CORPO- RATION'S RETURN FOR THE PRECEDING TAXABLE YEAR, IF SUCH PRECEDING YEAR WAS A TAXABLE YEAR OF TWELVE MONTHS; AND (B) THE TIME WHEN A RETURN IS REQUIRED TO BE FILED SHALL BE DETERMINED WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH RETURN. (3) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY GRANT A REASONABLE EXTENSION OF TIME FOR PAYMENT OF ANY SURCHARGE IMPOSED BY THIS SECTION UNDER SUCH CONDITIONS AS HE OR SHE DEEMS JUST AND PROPER. (J) ALL SURCHARGES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES UNDER THIS SECTION SHALL BE DEPOSITED INTO THE HEALTH CARE REFORM ACT (HCRA) RESOURCES FUND PURSUANT TO SECTION NINETY-TWO-DD OF THE STATE FINANCE LAW. (K) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE PROVISIONS OF THIS SECTION IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE TWENTY-SEVEN HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD EXPRESSLY REFERRED TO THE SURCHARGE UNDER THIS SECTION, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THIS SECTION. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE SAME POWER AND AUTHORITY THAT THE COMMISSIONER HAS UNDER ARTICLE TWENTY-SEVEN OF THIS CHAPTER. § 2. This act shall take effect immediately. PART EE Section 1. Subdivision 1 of Section 208 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 140 of the laws of 2008, is amended to read as follows: 1. In consideration of the franchise and in accordance with its fran- chise agreement, the franchised corporation shall remit to the state, each year, no later than April fifth, a franchise fee payment. The fran- chise fee shall be calculated and equal to the lesser of paragraph (a) S. 7509 64 A. 9509 or (b) of this subdivision as follows: (a) adjusted net income, includ- ing all sources of audited generally accepted accounting principles net income as of December thirty-first (i) plus the amount of depreciation and amortization for such year as set forth on the statement of cash flows (ii) less the amount received by the franchised corporation for capital expenditures and (iii) less principal payments made for the repayment of debt; or (b) operating cash which is defined as cash avail- able on December thirty-first (i) which excludes all restricted cash accounts, segregated accounts as per audited financial statements and cash on hand needed to fund the on-track pari-mutuel operations through the vault, (ii) less [forty-five] NINETY days of operating expenses pursuant to generally accepted accounting principles which shall be an average calculated by dividing the current year's annual budget by the number of days in such year and multiplying that number by [forty-five] NINETY. § 2. Section 203 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: § 203. Right to hold race meetings and races. 1. Any corporation formed under the provisions of this article, if so claimed in its certificate of organization, and if it shall comply with all the provisions of this article, and any other corporation entitled to the benefits and privileges of this article as hereinafter provided, shall have the power and the right to hold one or more running race meetings in each year, and to hold, maintain and conduct running races at such meetings. At such running race meetings the corporation, or the owners of horses engaged in such races, or others who are not participants in the race, may contribute purses, prizes, premiums or stakes to be contested for, but no person or persons other than the owner or owners of a horse or horses contesting in a race shall have any pecuniary interest in a purse, prize, premium or stake contested for in such race, or be entitled to or receive any portion thereof after such race is finished, and the whole of such purse, prize, premium or stake shall be allotted in accordance with the terms and conditions of such race. Races conducted by a franchised corporation shall be permitted only between sunrise and sunset. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN- CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER SUNSET AT THE BELMONT PARK RACETRACK, ONLY ON THE MAIN TRACK IN ITS CURRENT CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK POST MERIDIAN, AND ONLY IF SUCH RACES OCCUR ON THURSDAYS, FRIDAYS OR SATURDAYS. THE FRANCHISED CORPORATION SHALL COORDINATE WITH A HARNESS RACING ASSOCIATION OR CORPORATION AUTHORIZED TO OPERATE IN WESTCHESTER COUNTY TO ENSURE THAT THE STARTING TIMES OF ALL SUCH RACES ARE STAG- GERED. 3. A track first licensed after January first, nineteen hundred nine- ty, shall not conduct the simulcasting of thoroughbred races within district one, in accordance with article ten of this chapter on days that a franchised corporation is not conducting a race meeting. In no event shall thoroughbred races conducted by a track first licensed after January first, nineteen hundred ninety be conducted after eight o'clock post meridian. § 3. An advisory committee shall be established by the governor comprised of individuals with demonstrated interest in the performance of thoroughbred and standardbred race horses to review the present structure, operations and funding of equine drug testing and research S. 7509 65 A. 9509 conducted pursuant to article nine of the racing, pari-mutuel wagering and breeding law. Recommendations shall be delivered to the temporary president of the Senate, speaker of the Assembly and Governor by Decem- ber 1, 2018 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 4. This act shall take effect immediately; provided, however, that the amendments to section 203 of the racing, pari-mutuel wagering and breeding law made by section two of this act shall expire and be deemed repealed 4 years after the first night of racing conducted after sunset pursuant to this act; provided that the New York Racing Association shall notify the legislative bill drafting commission of the date of such night of racing in order that the commission may maintain an accu- rate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public offi- cers law. PART FF Section 1. Subdivision 2 of section 254 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph h to read as follows: H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph j to read as follows: J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 3. This act shall take effect immediately. PART GG Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group S. 7509 66 A. 9509 residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [eighteen] NINETEEN; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [eighteen] NINETEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [eighteen] NINETEEN, the amount used exclusively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twen- ty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 S. 7509 67 A. 9509 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [eighteen] NINETEEN and on any day regardless of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [eighteen] NINETEEN. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that have entered into a written agreement with such facility's representative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [eighteen] NINETEEN. This section shall super- sede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [eighteen] NINETEEN. Every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organ- ization as approved by the commission, one thousand eight or one thou- sand nine of this article shall be authorized to accept wagers and display the live full-card simulcast signal of thoroughbred tracks (which may include quarter horse or mixed meetings provided that all such wagering on such races shall be construed to be thoroughbred races) located in another state or foreign country, subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article: § 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [seventeen] EIGHTEEN, when a franchised corporation is conducting a race meeting within the state at Saratoga Race Course, every off-track S. 7509 68 A. 9509 betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. § 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: § 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2018] 2019; provided, however, that nothing contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. § 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section 8 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: § 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2018] 2019; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets be presented for payment before April first of the year following the year of their purchase, less an amount which shall be established and retained by such fran- chised corporation of between twelve to seventeen per centum of the total deposits in pools resulting from on-track regular bets, and four- teen to twenty-one per centum of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five per centum of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six per centum of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the gaming commission. S. 7509 69 A. 9509 Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five per centum of regular bets and four per centum of multiple bets plus twenty per centum of the breaks; for exotic wagers seven and one-half per centum plus twenty per centum of the breaks, and for super exotic bets seven and one-half per centum plus fifty per centum of the breaks. For the period June first, nineteen hundred ninety-five through September ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be three per centum and such tax on multiple wagers shall be two and one- half per centum, plus twenty per centum of the breaks. For the period September tenth, nineteen hundred ninety-nine through March thirty- first, two thousand one, such tax on all wagers shall be two and six- tenths per centum and for the period April first, two thousand one through December thirty-first, two thousand [eighteen] NINETEEN, such tax on all wagers shall be one and six-tenths per centum, plus, in each such period, twenty per centum of the breaks. Payment to the New York state thoroughbred breeding and development fund by such franchised corporation shall be one-half of one per centum of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three per centum of super exotic bets provided, however, that for the period September tenth, nineteen hundred ninety-nine through March thir- ty-first, two thousand one, such payment shall be six-tenths of one per centum of regular, multiple and exotic pools and for the period April first, two thousand one through December thirty-first, two thousand [eighteen] NINETEEN, such payment shall be seven-tenths of one per centum of such pools. § 10. This act shall take effect immediately. PART HH Section 1. Subdivision 4 of section 97-nnnn of the state finance law is REPEALED. § 2. Subdivisions 5 and 6 of section 97-nnnn of the state finance law are renumbered subdivisions 4 and 5. § 3. This act shall take effect April 1, 2018. PART II S. 7509 70 A. 9509 Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision b of section 1612 of the tax law are REPEALED and a new subparagraph (ii) is added to read as follows: (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA- TOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE: (A) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE ONE AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW OR THAT IS LOCATED MORE THAN FIFTEEN MILES BUT WITHIN FIFTY MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-ONE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; AND THAT AT A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-SIX PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (C) WHEN A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK, AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, UPON THE EARLIER OF THE DESIGNATION OF ONE THOUSAND VIDEO LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH FOUR OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (D) WHEN A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED PURSU- ANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-FIVE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (E) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN REGION ONE OR TWO OF DEVELOPMENT ZONE TWO, AS SUCH ZONE IS DEFINED IN SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, OR IS LOCATED WITHIN REGION SIX OF SUCH DEVELOPMENT ZONE TWO AND IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL COMMISSION. THE ADDITIONAL COMMISSION RECEIVED BY THE VENDOR TRACK SHALL BE THE ADJUSTED COMMISSION CALCULATED PURSUANT TO SUBCLAUSE (II) OF THIS CLAUSE; PROVIDED, HOWEVER, THE ADDITIONAL COMMISSION SHALL NOT EXCEED AN AMOUNT CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE. (I) THE MAXIMUM ADDITIONAL COMMISSION PAYABLE FOR ANY FISCAL YEAR SHALL BE AN AMOUNT EQUAL TO THE BASE VENDOR FEE LESS THE ADJUSTED CURRENT VENDOR FEE. THE ADJUSTED CURRENT VENDOR FEE IS CALCULATED AS THE S. 7509 71 A. 9509 VENDOR FEE THAT THE FACILITY WOULD HAVE RECEIVED DURING THE CURRENT FISCAL YEAR UNDER THE PAYMENT SCHEDULE ESTABLISHED BY THIS PARAGRAPH AS IT EXISTED ON MARCH THIRTY-FIRST, TWO THOUSAND SEVENTEEN. THE BASE VENDOR FEE IS CALCULATED AS THE VENDOR FEE THAT THE FACILITY RECEIVED DURING THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE OPENING OF A GAMING FACILITY IN THE SAME REGION AS THE VENDOR TRACK. FOR THE PURPOSES OF THIS CALCULATION, A VENDOR FEE SHALL EXCLUDE ANY DISTRIBUTIONS REQUIRED BY PARAGRAPH TWO OF THIS SUBDIVISION. FOR THE PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUNTIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (II) THE ADJUSTED COMMISSION IS A PERCENTAGE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE TAX RATE ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN THE SAME REGION AS THE VENDOR TRACK FROM THE EDUCATION PERCENTAGE. THE EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUN- TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (III) THE ADDITIONAL COMMISSION PAID PURSUANT TO THIS SUBPARAGRAPH SHALL COMMENCE WITH THE STATE FISCAL YEAR ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND EIGHTEEN AND SHALL BE PAID TO A VENDOR TRACK NO LATER THAN SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT A VENDOR TRACK WHILE A GAMING FACILITY IN THE SAME REGION AS THAT VENDOR TRACK IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MU- TUEL WAGERING AND BREEDING LAW. (F) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERA- TORS OF A VENDOR TRACK OR THE OPERATORS OF ANY OTHER VIDEO LOTTERY GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR- TY-FIRST, TWO THOUSAND SEVENTEEN SHALL DEPOSIT FROM THEIR VENDOR FEE INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF THE FIRST SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE USED EXCLUSIVELY FOR CAPITAL INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO ONE PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER UNTIL THE EARLIER OF THE DESIGNATION OF ONE THOUSAND VIDEO LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH FOUR OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR PROJECTS APPROVED BY THE COMMISSION TO IMPROVE THE FACILITIES OF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR MAINTAIN THE VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS, OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES, RETAIL FACILITIES, DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS AND AMENITIES CUSTOMARY TO A GAMING FACILITY, PROVIDED, HOWEVER, THE VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR UNREIMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM THE DIVESTITURE OF ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL S. 7509 72 A. 9509 AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED THAT IF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET TO A RELATED PARTY, SUCH VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY SHALL DEPOSIT AN AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES GAMING OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE VALUE OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI- TAL AWARDS SHALL BE RETURNED TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO AN AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI- TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI- TAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP TO TWO MILLION DOLLARS FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE AT THE VENDOR TRACK. (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE SHALL NOT BE INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES PAYA- BLE TO THE DIVISION'S VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR RACING SUPPORT PAYMENTS. (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR OF A VENDOR TRACK OR THE OPERATOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY SHALL FUND A MARKETING AND PROMOTION PROGRAM OUT OF THE VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL MARKETING PLAN FOR THE REVIEW AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU- MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE COMMISSION. THE COMMISSION SHALL HAVE THE RIGHT TO REJECT ANY ADVERTISEMENT OR PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR INTERESTS OF THE LOTTERY OR ITS PROGRAMS. (I) NOTWITHSTANDING CLAUSE (F) OF THIS SUBPARAGRAPH, THE COMMISSION SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND WHO HAS MAINTAINED AT LEAST NINETY PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED IN CLAUSE (F) OF THIS SUBPARAGRAPH UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER EACH YEAR, FOR OPERATIONS. § 2. This act shall take effect immediately; provided, however, clause (I) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall expire and be deemed repealed June 29, 2019. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section S. 7509 73 A. 9509 or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Parts A through II of this act shall be as specifically set forth in the last section of such Parts.
2017-S7509A - Details
- See Assembly Version of this Bill:
- A9509
- Law Section:
- Executive Law
- Laws Affected:
- Amd Various Laws, generally
2017-S7509A - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption
2017-S7509A - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 7509--A A. 9509--A S E N A T E - A S S E M B L Y January 18, 2018 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property tax law, in relation to the annual growth in STAR benefits (Part A); to amend the real property tax law, in relation to making the STAR income verification program mandatory; to amend the tax law, in relation to the calculation of income for basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and to repeal section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); to amend the real property law, in relation to real property transfer reports (Part C); to amend the real property law, in relation to reports of manufac- tured housing park owners (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general munic- ipal law and section 2023-b of the education law, relating thereto (Part E); to amend the real property tax law, in relation to taxable state land (Part F); to amend the real property tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to the effective- ness thereof (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extending the statute of limitations for assessing tax on amended returns (Part H); to amend the tax law, in relation to providing for employee wage reporting
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12674-04-8 S. 7509--A 2 A. 9509--A consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); to amend the social services law, in relation to the disclosure of certain informa- tion relating to a person receiving public assistance to the commis- sioner of taxation and finance (Part L); to amend the tax law, in relation to establishing a conditional tax on carried interest (Part M); to amend the tax law, in relation to permitting the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part N); to amend the tax law and the adminis- trative code of the city of New York, in relation to the definition of resident for tax purposes of the personal income tax (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); to amend the tax law, in relation to the temporary deferral of certain tax credits (Part S); to amend the tax law, in relation to extending the real estate transfer tax statute of limita- tions for refunds from two to three years and providing for consistent joint liability treatment within the real estate transfer tax (Part T); to amend the tax law, in relation to the taxation of cigars (Part U); to amend the tax law and the administrative code of the city of New York, in relation to sales and use taxes on gas and electric service; and repealing section 1105-C of the tax law relating thereto (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); to amend the tax law, in relation to exempting items of food and drink when sold from certain vending machines from the sales and compensating use tax (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes in certain counties, in relation to extend- ing the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); to amend the tax law, in relation to imposing an internet fairness conformity tax and requiring non-collecting sellers to provide specified information to New York purchasers and to the commissioner of taxation and finance (Part AA); to amend the tax law, in relation to imposing a health tax on vapor products (Part BB); to amend the tax law, in relation to the imposition of an opioid epidemic surcharge; and to amend the state finance law, in relation to estab- lishing the opioid prevention, treatment and recovery account (Part CC); to amend the tax law, in relation to establishing a healthcare insurance windfall profit fee (Part DD); to amend the racing, pari-mu- tuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee; and providing for the repeal of certain provisions upon the expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to providing funds for the aftercare of retired horses (Part S. 7509--A 3 A. 9509--A FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); to amend the state finance law, in relation to the commercial gaming revenue fund; and to repeal subdivi- sion 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); and to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; to repeal certain provisions of such law relating thereto; providing for the repeal of certain provisions upon expiration thereof (Part II); to amend the tax law and the administrative code of the city of New York, in relation to addressing changes made to the internal revenue code by Public Law 115-97 (Part JJ); to amend the tax law, in relation to federal gross income and federal deductions allowed pursuant to the internal revenue code (Part KK); to amend the state finance law, in relation to establishing the charitable gifts trust fund and the health charitable account, and the elementary and secondary education charitable account; to amend the tax law, in relation to credits for contributions to accounts in the charitable gifts trust fund; to amend the education law and the general municipal law, in relation to authorizing school districts, counties and New York city to establish charitable funds; and to amend the real property tax law, in relation to authorizing such localities to provide a credit against real prop- erty taxes for such contributions (Part LL); and to amend the tax law and state finance law, in relation to the imposition of an employer compensation expense tax (Part MM) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year. Each component is wholly contained within a Part identified as Parts A through MM. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, includ- ing the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. Subparagraph (i) of paragraph (a) of subdivision 2 of section 1306-a of the real property tax law, as amended by section 6 of part N of chapter 58 of the laws of 2011, is amended to read as follows: S. 7509--A 4 A. 9509--A (i) The tax savings for each parcel receiving the exemption authorized by section four hundred twenty-five of this chapter shall be computed by subtracting the amount actually levied against the parcel from the amount that would have been levied if not for the exemption, provided however, that [beginning with] FOR the two thousand eleven-two thousand twelve THROUGH TWO THOUSAND SEVENTEEN-TWO THOUSAND EIGHTEEN school [year] YEARS, the tax savings applicable to any "portion" (which as used herein shall mean that part of an assessing unit located within a school district) shall not exceed the tax savings applicable to that portion in the prior school year multiplied by one hundred two percent, with the result rounded to the nearest dollar; AND PROVIDED FURTHER THAT BEGIN- NING WITH THE TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN SCHOOL YEAR, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT EXCEED THE TAX SAVINGS FOR THE PRIOR YEAR. The tax savings attributable to the basic and enhanced exemptions shall be calculated separately. It shall be the responsibility of the commissioner to calculate tax savings limitations for purposes of this subdivision. § 2. This act shall take effect immediately. PART B Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by section 3 of part E of chapter 83 of the laws of 2002, is amended to read as follows: (ii) The term "income" as used herein shall mean the "adjusted gross income" for federal income tax purposes as reported on the applicant's federal or state income tax return for the applicable income tax year, subject to any subsequent amendments or revisions, reduced by distrib- utions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retire- ment annuity; provided that if no such return was filed for the applica- ble income tax year, "income" shall mean the adjusted gross income that would have been so reported if such a return had been filed. PROVIDED FURTHER, THAT EFFECTIVE WITH EXEMPTION APPLICATIONS FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI- BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX YEAR, THEN IN ORDER FOR THE APPLICATION TO BE CONSIDERED COMPLETE, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPARTMENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPART- MENT, AND SHALL BE SUBJECT TO THE SECRECY PROVISIONS OF THE TAX LAW TO THE SAME EXTENT THAT A PERSONAL INCOME TAX RETURN WOULD BE. THE DEPART- MENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAILABLE FOR THE FILING OF SUCH STATEMENTS. § 2. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by chapter 451 of the laws of 2015, is amended to read as follows: (iv) (A) Effective with applications for the enhanced exemption on final assessment rolls to be completed in two thousand [three] NINETEEN, the application form shall indicate that [the] ALL owners of the proper- ty and any owners' spouses residing on the premises [may authorize the assessor to] MUST have their income eligibility verified annually [ther- eafter] by the [state] department [of taxation and finance, in lieu of S. 7509--A 5 A. 9509--A furnishing copies of the applicable income tax return or returns with the application. If the owners of the property and any owners' spouses residing on the premises elect to participate in this program, which shall be known as the STAR income verification program, they] AND must furnish their taxpayer identification numbers in order to facilitate matching with records of the department. [Thereafter, their] THE income eligibility OF SUCH PERSONS shall be verified annually by the department, and the assessor shall not request income documentation from them[, unless such department advises the assessor that they do not satisfy the applicable income eligibility requirements, or that it is unable to determine whether they satisfy those requirements]. All APPLI- CANTS FOR THE ENHANCED EXEMPTION AND ALL assessing units shall be required to participate in this program, WHICH SHALL BE KNOWN AS THE STAR INCOME VERIFICATION PROGRAM. (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS- SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE REMOVED OR DENIED WITHOUT BEING REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE TO THE BASIC EXEMPTION HAS ALSO BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS- SIONER EVIDENCE TO THE CONTRARY. IN EITHER CASE, IF THE OWNERS FAIL TO RESPOND TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF, OR IF THEIR RESPONSE DOES NOT SHOW TO THE COMMISSIONER'S SATISFACTION THAT THE PROPERTY IS ELIGIBLE FOR THE EXEMPTION CLAIMED, THE COMMISSION- ER SHALL DIRECT THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL TO EITHER REPLACE THE ENHANCED EXEMPTION WITH A BASIC EXEMPTION, OR TO REMOVE OR DENY THE ENHANCED EXEMPTION WITHOUT REPLACING IT WITH A BASIC EXEMPTION, AS APPROPRIATE. THE COMMISSIONER SHALL FURTHER DIRECT SUCH PERSON TO CORRECT THE ROLL ACCORDINGLY. SUCH A DIRECTIVE SHALL BE BINDING UPON THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL, AND SHALL BE IMPLEMENTED BY SUCH PERSON WITHOUT THE NEED FOR FURTHER DOCUMENTATION OR APPROVAL. (C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NEITHER AN ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER AN OBJECTION TO THE REPLACEMENT OR REMOVAL OR DENIAL OF AN EXEMPTION PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE REVIEWED IN A PROCEEDING TO REVIEW AN ASSESSMENT PURSUANT TO TITLE ONE OR ONE-A OF ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION MAY ONLY BE CHALLENGED BEFORE THE DEPARTMENT. IF A TAXPAYER IS DISSATISFIED WITH THE DEPART- MENT'S FINAL DETERMINATION, THE TAXPAYER MAY APPEAL THAT DETERMINATION TO THE STATE BOARD OF REAL PROPERTY TAX SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE ISSUANCE OF THE DEPARTMENT'S FINAL DETERMI- NATION. IF DISSATISFIED WITH THE STATE BOARD'S DETERMINATION, THE TAXPAYER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO ARTICLE SEVENTY- EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE TAXPAYER SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A COURT ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM OF LEGAL RECOURSE AGAINST THE COMMISSIONER, THE DEPARTMENT, THE STATE BOARD OF REAL PROPERTY TAX SERVICES, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION. S. 7509--A 6 A. 9509--A § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision 4 of section 425 of the real property tax law are REPEALED. § 4. Paragraphs (b) and (c) of subdivision 5 of section 425 of the real property tax law are REPEALED. § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper- ty tax law, as amended by section 5 of part E of chapter 83 of the laws of 2002 and subparagraph (i) as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (d) Third party notice. (i) A senior citizen eligible for the enhanced exemption may request that a notice be sent to an adult third party. Such request shall be made on a form prescribed by the commissioner and shall be submitted to the assessor of the assessing unit in which the eligible taxpayer resides no later than sixty days before the first taxable status date to which it is to apply. Such form shall provide a section whereby the designated third party shall consent to such desig- nation. Such request shall be effective upon receipt by the assessor. The assessor shall maintain a list of all eligible property owners who have requested notices pursuant to this paragraph AND SHALL FURNISH A COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST. (ii) [In the case of a senior citizen who has not elected to partic- ipate in the STAR income verification program, a notice shall be sent to the designated third party at least thirty days prior to each ensuing taxable status date; provided that no such notice need be sent in the first year if the request was not received by the assessor at least sixty days before the applicable taxable status date. Such notice shall read substantially as follows: "On behalf of (identify senior citizen or citizens), you are advised that his, her, or their renewal application for the enhanced STAR exemption must be filed with the assessor no later than (enter date). You are encouraged to remind him, her, or them of that fact, and to offer assistance if needed, although you are under no legal obligation to do so. Your cooperation and assistance are greatly appreciated." (iii) In the case of a senior citizen who has elected to participate in the STAR income verification program, a] A notice shall be sent to the designated third party whenever the assessor OR DEPARTMENT sends a notice to the senior citizen regarding the possible removal of the enhanced STAR exemption. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL BECAUSE THE COMMISSIONER HAS DETERMINED THAT THE INCOME ELIGIBILITY REQUIREMENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY THE DEPARTMENT. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL BECAUSE THE ASSESSOR HAS DETERMINED THAT ANY OTHER ELIGIBILITY REQUIRE- MENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY THE ASSESSOR. Such notice shall read substantially as follows: "On behalf of (identify senior citizen or citizens), you are advised that his, her, or their enhanced STAR exemption is at risk of being removed. You are encouraged to make sure that he, she or they are aware of that fact, and to offer assistance if needed, although you are under no legal obligation to do so. Your cooperation and assistance are great- ly appreciated." [(iv)] (III) The obligation to mail such notices shall cease if the eligible taxpayer cancels the request or ceases to qualify for the enhanced STAR exemption. § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper- ty tax law is REPEALED. S. 7509--A 7 A. 9509--A § 7. Subdivision 9-b of section 425 of the real property tax law, as added by section 8 of part E of chapter 83 of the laws of 2002 and para- graph (b) as amended by chapter 742 of the laws of 2005 and further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 9-b. Duration of exemption; enhanced exemption. (a) [In the case of persons who have elected to participate in the STAR income verification program, the] THE enhanced exemption, once granted, shall remain in effect until discontinued in the manner provided in this section. (b) [In the case of persons who have not elected to participate in the STAR income verification program, the enhanced exemption shall apply for a term of one year. To continue receiving such enhanced exemption, a renewal application must be filed annually with the assessor on or before the applicable taxable status date on a form prescribed by the commissioner. Provided, however, that if a renewal application is not so filed, the assessor shall discontinue the enhanced exemption but shall grant the basic exemption, subject to the provisions of subdivision eleven of this section. (c) Whether or not the recipients of an enhanced STAR exemption have elected to participate in the STAR income verification program, the] THE assessor [may review their] SHALL REVIEW THE continued compliance OF RECIPIENTS OF THE ENHANCED EXEMPTION with the applicable ownership and residency requirements to the same extent as if they were receiving a basic STAR exemption. [(d) Notwithstanding the foregoing provisions of this subdivision, the enhanced exemption shall be continued without a renewal application as long as the property continues to be eligible for the senior citizens exemption authorized by section four hundred sixty-seven of this title.] § 8. Section 425 of the real property tax law is amended by adding a new subdivision 14-a to read as follows: 14-A. IMPLEMENTATION OF CERTAIN ELIGIBILITY DETERMINATIONS. WHEN A TAXPAYER'S ELIGIBILITY FOR EXEMPTION UNDER THIS SECTION FOR A SCHOOL YEAR IS AFFECTED BY A DETERMINATION MADE IN ACCORDANCE WITH SUBPARAGRAPH (IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION OR PARAGRAPH (C) OR (D) OF SUBDIVISION FOURTEEN OF THIS SECTION, AND THE DETERMI- NATION IS MADE AFTER THE SCHOOL DISTRICT TAXES FOR THAT SCHOOL YEAR HAVE BEEN LEVIED, THE PROVISIONS OF THIS SUBDIVISION SHALL BE APPLICABLE. (A) IF THE DETERMINATION RESTORES OR INCREASES THE TAXPAYER'S EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO REMIT THE EXCESS DIRECTLY TO THE PROPERTY OWNER UPON RECEIVING CONFIRMATION THAT THE TAXPAYER'S ORIGINAL SCHOOL TAX BILL HAS BEEN PAID IN FULL. THE AMOUNTS PAYABLE BY THE COMMISSIONER UNDER THIS PARAGRAPH SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVI- SION FOURTEEN OF THIS SECTION. WHEN THE COMMISSIONER IMPLEMENTS THE DETERMINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO REFUND SHALL BE ISSUED BY THE SCHOOL AUTHORITIES TO THE PROPERTY OWNER OR HIS OR HER AGENT FOR THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID FOR THAT SCHOOL YEAR. (B) IF THE DETERMINATION REMOVES, DENIES OR DECREASES THE TAXPAYER'S EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO COLLECT THE SHORTFALL DIRECTLY FROM THE OWNERS OF THE PROPERTY, TOGETHER WITH INTEREST, BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION, LEVY, AND LIEN OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO OF THE S. 7509--A 8 A. 9509--A TAX LAW, AND ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN THE PROVISIONS OF SUCH ARTICLE. WHEN THE COMMISSIONER IMPLEMENTS THE DETER- MINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT SCHOOL YEAR. § 9. Section 171-o of the tax law is REPEALED. § 10. Subparagraph (B) of paragraph 1 of subsection (eee) of section 606 of the tax law, as amended by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (B) "Affiliated income" shall mean for purposes of the basic STAR credit, the combined income of all of the owners of the parcel who resided primarily thereon as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date, and for purposes of the enhanced STAR credit, the combined income of all of the owners of the parcel as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date; provided that for both purposes the income to be so combined shall be the "adjusted gross income" for the taxable year as reported for federal income tax purposes, or that would be reported as adjusted gross income if a federal income tax return were required to be filed, reduced by distributions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retirement annuity. FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI- BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO DID NOT FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE APPLICABLE INCOME TAX YEAR, THEN IN ORDER TO BE ELIGIBLE FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPART- MENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPARTMENT, AND SHALL BE SUBJECT TO THE PROVISIONS OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS ARTICLE TO THE SAME EXTENT THAT A RETURN WOULD BE. THE DEPARTMENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAIL- ABLE FOR THE FILING OF SUCH STATEMENTS. Provided further, that if the qualified taxpayer was an owner of the property during the taxable year but did not own it on December thirty-first of the taxable year, then the determination as to whether the income of an individual should be included in "affiliated income" shall be based upon the ownership and/or residency status of that individual as of the first day of the month during which the qualified taxpayer ceased to be an owner of the proper- ty, rather than as of December thirty-first of the taxable year. § 11. No application for an enhanced exemption on a final assessment roll to be completed in 2019 may be approved if the applicants have not enrolled in the STAR income verification program established by subpara- graph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law as amended by section two of this act, regardless of when the application was filed. The assessor shall notify such appli- cants that participation in that program has become mandatory for all applicants and that their applications cannot be approved unless they enroll therein. The commissioner of taxation and finance shall provide S. 7509--A 9 A. 9509--A a form for assessors to use, at their option, when making this notifica- tion. § 12. This act shall take effect immediately. PART C Section 1. Subdivision 1-e of section 333 of the real property law is amended by adding two new paragraphs ix and x to read as follows: IX. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A SHARE OR SHARES IN A COOPERATIVE HOUSING CORPORATION, AND SUCH SHARE OR SHARES COME WITH A RIGHT TO OCCUPY A UNIT OR APARTMENT LOCATED IN PROPERTY OWNED BY SUCH CORPORATION, A TRANSFER REPORT MUST BE FILED BY THE TRANS- FEREE OR TRANSFEREES DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE, REGARDLESS OF WHETHER A DEED IS PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER OF TAXA- TION AND FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPECIFY THE NUMBER OF SHARES BEING TRANSFERRED OR ACQUIRED. WHEN A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSUANT TO SECTION FOURTEEN HUNDRED NINE OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS PARAGRAPH SHALL BE FILED CONCURRENTLY THEREWITH, BUT IN NO EVENT SHALL THE REPORT REQUIRED BY THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH REAL ESTATE TRANSFER TAX RETURN. X. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A CONTROLLING INTEREST IN AN ENTITY WITH AN INTEREST IN REAL PROPERTY, A TRANSFER REPORT MUST BE FILED BY THE TRANSFEREE OR TRANSFEREES DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE, REGARDLESS OF WHETHER A DEED IS PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY WITH THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPEC- IFY THE PERCENTAGE OF THE OWNERSHIP INTEREST BEING TRANSFERRED OR ACQUIRED. THE TRANSFER REPORT SHALL INDICATE THE PERCENTAGE OF THE TRAN- SACTION THAT IS EXEMPT FROM THE REAL ESTATE TRANSFER TAX AS A MERE CHANGE IN IDENTITY OR FORM OF OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFICIAL OWNERSHIP PURSUANT TO PARAGRAPH SIX OF SUBDIVI- SION (B) OF SECTION FOURTEEN HUNDRED FIVE OF THE TAX LAW, IF ANY. WHEN A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSU- ANT TO SECTION FOURTEEN HUNDRED NINE OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS PARAGRAPH SHALL BE FILED CONCUR- RENTLY THEREWITH, BUT IN NO EVENT SHALL THE REPORT REQUIRED BY THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH REAL ESTATE TRANSFER TAX RETURN. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "CONTROLLING INTEREST" AND "INTEREST IN REAL PROPERTY" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION FOURTEEN HUNDRED ONE OF THE TAX LAW, PROVIDED, HOWEVER, THAT THE TERM "INTEREST IN REAL PROPERTY" SHALL BE LIMITED TO INTERESTS IN REAL PROPERTY SUBJECT TO REAL PROPERTY TAX ASSESSMENT SUCH AS LANDS, BUILDINGS, STRUCTURES, AND OTHER IMPROVEMENTS, AND SHALL NOT INCLUDE DEVELOPMENT RIGHTS, AIR SPACE, OR AIR RIGHTS. § 2. This act shall take effect January 1, 2019 and shall apply to transfers and acquisitions occurring on and after such date. S. 7509--A 10 A. 9509--A PART D Section 1. Subdivision v of section 233 of the real property law, as amended by chapter 566 of the laws of 1996, is amended to read as follows: v. 1. On and after April first, nineteen hundred eighty-nine, the commissioner of housing and community renewal shall have the power and duty to enforce and ensure compliance with the provisions of this section. However, the commissioner shall not have the power or duty to enforce manufactured home park rules and regulations established under subdivision f of this section. 2. On or before January first, nineteen hundred eighty-nine, each manufactured home park owner or operator shall file a registration statement with the commissioner and shall thereafter file an annual registration statement on or before January first of each succeeding year, UP TO AND INCLUDING TWO THOUSAND EIGHTEEN. THEREAFTER, EACH MANU- FACTURED HOME PARK OWNER OR OPERATOR SHALL FILE QUARTERLY REGISTRATION STATEMENTS WITH THE COMMISSIONER NO LATER THAN TWENTY-ONE DAYS AFTER THE END OF EACH CALENDAR QUARTER. The commissioner, by regulation, shall provide that such registration statement shall include [only] the names of all persons owning an interest in the park, the names of all tenants of the park, all services provided by the park owner to the tenants, and SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL PRESCRIBE BY REGULATION AFTER CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE; PROVIDED THAT IN THE CASE OF A REGISTRATION STATEMENT FOR THE FIRST CALENDAR QUARTER OF A YEAR, SUCH STATEMENT SHALL ALSO INCLUDE a copy of all current manufactured home park rules and regulations. THE COMMIS- SIONER SHALL PROVIDE THE COMMISSIONER OF TAXATION AND FINANCE WITH A COMPLETE COPY OF EACH QUARTERLY REPORT NO LATER THAN FIFTEEN DAYS AFTER THE RECEIPT THEREOF. 3. Whenever there shall be a violation of this section, an application may be made by the commissioner of housing and community renewal in the name of the people of the state of New York to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violation; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated this section, an injunction may be issued by such court or justice, enjoining and restraining any further violation and with respect to this subdivision, directing the filing of a registration statement. In any such proceeding, the court may make allowances to the commissioner of housing and community renewal of a sum not exceeding two thousand dollars against each defendant, and direct restitution. When- ever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty of not more than one thousand five hundred dollars for each violation. Such penalty shall be deposited in the manufactured home cooperative fund, created pursuant to section fifty-nine-h of the private housing finance law. In connection with any such proposed application, the commissioner of housing and community renewal is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. The provisions of this subdivision shall not impair the rights granted under subdivision u of this section. § 2. This act shall take effect immediately. PART E S. 7509--A 11 A. 9509--A Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED. § 1-a. Section 3-d of the general municipal law is REPEALED. § 1-b. Section 2023-b of the education law is REPEALED. § 2. The general municipal law is amended by adding a new section 3-d to read as follows: § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE LOCAL GOVERNMENT UNIT DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER- RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR RESOLUTION WAS SUBSE- QUENTLY REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION- ER OF TAXATION AND FINANCE. 2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF SUCH A CERTIF- ICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A DULY ADOPTED LOCAL LAW OR RESOLUTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY LOCAL GOVERNMENT UNIT SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE TIME AND IN THE MANNER AS HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION. § 3. The education law is amended by adding a new section 2023-b to read as follows: § 2023-B. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF AN ELIGIBLE SCHOOL DISTRICT, THE CHIEF EXECUTIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL CERTIFY TO THE STATE COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMIS- SIONER THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER. 2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE SCHOOL DISTRICT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR- IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN- TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS- SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI- VISION. § 4. Subdivision 3 of section 97-rrr of the state finance law, as amended by section 1 of part F of chapter 59 of the laws of 2015, is amended to read as follows: S. 7509--A 12 A. 9509--A 3. The monies in such fund shall be appropriated for school property tax exemptions granted pursuant to the real property tax law and payable pursuant to section thirty-six hundred nine-e of the education law[, and for payments to the city of New York pursuant to section fifty-four-f of this chapter]. § 5. Section 925-b of the real property tax law, as amended by chapter 161 of the laws of 2006, is amended to read as follows: § 925-b. Extension; certain persons sixty-five years of age or over. Notwithstanding any contrary provision of this chapter, or any general, special or local law, code or charter, the governing body of a municipal corporation other than a county may, by resolution adopted prior to the levy of any taxes on real property located within such municipal corpo- ration, authorize an extension of no more than five business days for the payment of taxes without interest or penalty to any resident of such municipal corporation who has received an exemption pursuant to subdivi- sion four of section four hundred twenty-five or four hundred sixty-sev- en of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located within such municipal corporation. If such an extension is granted, and any taxes are not paid by the final date so provided, those taxes shall be subject to the same interest and penalties that would have applied if no extension had been granted. § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop- erty tax law is relettered paragraph (f) and two new paragraphs (d) and (e) are added to read as follows: (D) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY TO ESTABLISH A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH RESPECT TO THE TAXES SO COLLECTED. (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE NOT COLLECTED BY A COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE IS PROVIDED BY THE COUNTY, THEN BEFORE THE CITY, TOWN, VILLAGE OR SCHOOL DISTRICT MAY IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION, IT MUST OBTAIN WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES. § 7. Subparagraph (B) of paragraph 7 of subsection (eee) of section 606 of the tax law, as amended by section 1 of part G of chapter 59 of the laws of 2017, is amended to read as follows: (B) Notwithstanding any provision of law to the contrary, the names and addresses of individuals who have applied for or are receiving the credit authorized by this subsection may be disclosed to assessors [and], county directors of real property tax services, AND MUNICIPAL TAX COLLECTING OFFICERS. In addition, where an agreement is in place between the commissioner and the head of the tax department of another state, such information may be disclosed to such official or his or her desig- nees. Such information shall be considered confidential and shall not be subject to further disclosure pursuant to the freedom of information law or otherwise. § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop- erty tax law, as added by section 1 of part B of chapter 389 of the laws of 1997 and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (g) Computation and certification by commissioner. It shall be the responsibility of the commissioner to compute the exempt amount for each assessing unit in each county in the manner provided herein, and to S. 7509--A 13 A. 9509--A certify the same to the assessor of each assessing unit and to the coun- ty director of real property tax services of each county. Such certif- ication shall be made at least twenty days before the last date prescribed by law for the filing of the tentative assessment roll. PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON A PRIOR YEAR ASSESSMENT ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION, AND PROVIDED FURTHER, THAT UPON RECEIPT OF SUCH CERTIFICATION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH- ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. § 8. Paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new subparagraph (A) to read as follows: (A) A MARRIED COUPLE MAY NOT RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON MORE THAN ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR, UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY A MARRIED COUPLE RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON ONE RESIDENCE WHILE RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE TO LEGAL SEPARATION. § 9. This act shall take effect immediately; provided, however, that section 3-d of the general municipal law, as added by section two of this act, shall expire and be deemed repealed on the same date and in the same manner as section 1 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided that section 2023-b of the education law, as added by section three of this act, shall expire and be deemed repealed on the same date and in the same manner as section 2 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided further that the amendments to paragraph 6 of subsection (eee) of section 606 of the tax law made by section eight of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. REPEAL NOTE: Section 606(bbb) of the Tax Law, section 3-d of the General Municipal Law and section 2023-b of the Education Law collec- tively constituted the enabling legislation for the tax freeze credit program. By the terms of those statutes, the tax freeze credit was only applicable to taxable years 2014, 2015 and 2016. Therefore, these provisions no longer serve a purpose, except for the reporting provisions, which facilitate the administration of the tax levy limit program and are being preserved in a reenacted section 3-d of the Gener- al Municipal Law and section 2023-b of the Education Law. PART F Section 1. Subdivision 1 of section 544 of the real property tax law, as amended by chapter 18 of the laws of 2008, is amended and a new subdivision 3 is added to read as follows: 1. The comptroller shall pay taxes levied on lands of the state in each county pursuant to the foregoing sections of this title, out of moneys appropriated by the legislature therefor, to the county treasurer for appropriate distribution upon submission of a statement of such taxes by him or her in such form and executed in such manner by the S. 7509--A 14 A. 9509--A county treasurer as may be required by the comptroller. Provided, howev- er, that in the case of lands which are taxable pursuant to subdivision (j) of section five hundred thirty-two of this title, the comptroller shall pay such taxes. Such payment shall be requested, processed and paid separately from all other taxes that are payable to the county treasurer pursuant to this section. PROVIDED FURTHER, THAT ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA- BLE PARCEL OF STATE LAND PURSUANT TO THIS SUBDIVISION, THE AMOUNT OF TAXES DUE AND PAYABLE ON THAT PARCEL THEREAFTER SHALL BE CALCULATED BY THE COMPTROLLER IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION THREE OF THIS SECTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA- BLE PARCEL OF STATE LAND PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE COMPTROLLER SHALL THEREAFTER CALCULATE THE TAXES DUE AND PAYABLE ON THAT PARCEL AS FOLLOWS: (A) IN THE CASE OF A LOCAL GOVERNMENT, THE TAXES SO PAYABLE SHALL EQUAL THE TAXES THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR FISCAL YEAR OF THE LOCAL GOVERNMENT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH FACTOR. AS USED IN THIS PARAGRAPH, THE TERMS "LOCAL GOVERNMENT," "PRIOR FISCAL YEAR" AND "ALLOWABLE LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS AS SET FORTH IN SECTION THREE-C OF THE GENERAL MUNICIPAL LAW, PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED TO HAVE THE MEANINGS SET FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON WHICH IT WAS IN EFFECT. (B) IN THE CASE OF A SCHOOL DISTRICT, THE TAXES SO PAYABLE SHALL EQUAL THE TAXES THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR SCHOOL YEAR OF THE SCHOOL DISTRICT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH FACTOR. AS USED IN THIS PARAGRAPH, THE TERMS "SCHOOL DISTRICT," "PRIOR SCHOOL YEAR" AND "ALLOWABLE LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS AS SET FORTH IN SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW, PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED TO HAVE THE MEANINGS SET FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON WHICH IT WAS IN EFFECT. (C) ON OR BEFORE JULY FIRST OF EACH YEAR, THE COMPTROLLER SHALL CALCU- LATE THE AMOUNTS OF TAXES THAT ARE DUE AND PAYABLE ON TAXABLE STATE LAND PURSUANT TO THIS SUBDIVISION, AND SHALL NOTIFY THE COMMISSIONER OF THE AMOUNTS SO CALCULATED. THE COMMISSIONER SHALL THEREUPON TRANSMIT THAT INFORMATION TO THE AFFECTED LOCAL GOVERNMENTS AND SCHOOL DISTRICTS. THE TAXES DUE ON SUCH LANDS SHALL BE PAID BY THE COMPTROLLER IN THE MANNER PROVIDED BY SUBDIVISION ONE OF THIS SECTION. (D) THE FOLLOWING PROVISIONS SHALL APPLY TO STATE LANDS THAT ARE SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION: (I) SUCH LANDS SHALL NOT BE INCLUDED ON THE LISTS OF TAXABLE STATE LANDS THAT MUST BE SUPPLIED BY THE COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY OF THIS TITLE. (II) THE ASSESSMENTS OF SUCH LANDS SHALL NOT BE REPORTED TO THE COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE. (III) THE ASSESSMENTS OF SUCH LANDS SHALL NOT BE SUBJECT TO THE APPROVAL OF THE COMMISSIONER PURSUANT TO SUCH SECTION, AND SHALL NOT BE TAKEN INTO ACCOUNT IN THE CALCULATION OF THE TAXES DUE ON SUCH LANDS. (IV) SUCH LANDS SHALL BE ENTERED ON THE EXEMPT PORTION OF THE ASSESS- MENT ROLL, NOTWITHSTANDING THE FACT THAT THEY ARE TAXABLE PURSUANT TO THIS TITLE. PROVIDED, THAT NO SUCH ENTRY SHALL BE MADE IN THE CASE OF AN S. 7509--A 15 A. 9509--A ASSESSMENT ADJUSTMENT MADE BY THE COMMISSIONER PURSUANT TO PARAGRAPH (C) OF SUBDIVISION THREE OF SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE OR SECTION 15-2115 OF THE ENVIRONMENTAL CONSERVATION LAW, OR IN THE CASE OF STATE AID PAYABLE PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS TITLE DUE TO A REDUCTION IN THE ASSESSMENT OF TAXABLE STATE LAND. (V) SUCH LANDS SHALL BE DISREGARDED WHEN CALCULATING STATE EQUALIZA- TION RATES AND TAX RATES. (VI) WHEN A SCHOOL DISTRICT RECEIVES PAYMENTS OF TAXES ON STATE LANDS PURSUANT TO THIS SUBDIVISION, ANY ACTUAL VALUATION COMPUTED FOR SUCH SCHOOL DISTRICT PURSUANT TO PARAGRAPH C OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW SHALL INCLUDE THE ACTUAL VALUATION EQUIVALENT OF THOSE PAYMENTS. THE COMMISSIONER SHALL DETERMINE SUCH ACTUAL VALUATION EQUIVALENT BY DIVIDING THE PAYMENT MADE, AS REPORTED TO SUCH COMMISSIONER BY THE COMPTROLLER, BY THE SCHOOL TAX RATE THAT WAS APPLIED TO REAL PROPERTY ON THAT YEAR'S ASSESSMENT ROLL OR, IF APPLICABLE, THE SPECIAL APPORTIONMENT RATE DETERMINED PURSUANT TO SECTION TWELVE HUNDRED TWENTY-SEVEN OF THIS CHAPTER AND DIVIDING SUCH RESULT BY THE FINAL STATE EQUALIZATION RATE FOR THAT ROLL. THE ACTUAL VALUATION EQUIVALENT SHALL BE REPORTED TO THE STATE COMPTROLLER AND THE COMMISSIONER OF EDUCATION, AND SHALL BE USED BY THE COMMISSIONER OF EDUCATION IN THE DETERMINATION OF ANY STATE AVERAGE THAT USES REAL PROP- ERTY TAXES LEVIED AGAINST AND/OR ACTUAL VALUATION BASED UPON THE CORRE- SPONDING ASSESSMENT ROLL. EACH SCHOOL DISTRICT RECEIVING PAYMENTS OF TAXES ON STATE LANDS PURSUANT TO THIS SUBDIVISION SHALL ANNUALLY REPORT THOSE PAYMENTS TO THE COMMISSIONER OF EDUCATION, WITH A COPY TO THE COMMISSIONER, AS A CONDITION TO RECEIVING ANY AID PURSUANT TO SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW. (E) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE PAYMENT OF STATE AID PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS TITLE IN RELATION TO PROPERTY THAT HAS BECOME EXEMPT FROM TAXATION DUE TO ITS ACQUISITION BY THE STATE OR AN AGENCY OF THE STATE. § 2. This act shall take effect immediately. PART G Section 1. Section 4 of chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, is amended to read as follows: § 4. This act shall take effect on the first of January of the second calendar year commencing after this act shall have become a law and shall apply to assessment rolls with taxable status dates on or after such date; provided, however, that this act shall expire and be deemed repealed [four] EIGHT years after such effective date; and provided, further, that no assessment of local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the first calendar year after this act shall have become a law shall be less than ninety percent or more than one hundred ten percent of the assessment of the same property on the date this act shall have become a law. § 2. Subdivision 3 of section 499-kkkk of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. (A) For assessment rolls with taxable status dates in each of the three calendar years including and following the year in which this section shall take effect, the commissioner shall establish no assess- ment ceiling that is less than ninety percent or more than one hundred S. 7509--A 16 A. 9509--A ten percent of the assessment of such local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the second preceding calendar year from when this section shall take effect, except that the commissioner may estab- lish assessment ceilings below the ninety percent level or above the one hundred ten percent level to take into account any change in level of assessment and/or to take into account any additions or retirements to public utility mass real property or litigation affecting the value or taxable status of the local public utility mass real property initiated prior to the effective date of this section. (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN THE YEARS TWO THOUSAND EIGHTEEN, TWO THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING THAT IS BELOW THE LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL OF ASSESSMENT AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING THE VALUE OR TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI- ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND EIGHTEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN SEVENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIRTEEN. (II) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR MORE THAN ONE HUNDRED FIFTY PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIR- TEEN. (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND TWENTY, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN TWENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIRTEEN. § 3. This act shall take effect immediately, provided, however, that the amendments to subdivision three of section 499-kkkk of the real property tax law made by section two of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART H Section 1. Subsection (c) of section 683 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. S. 7509--A 17 A. 9509--A § 2. Subsection (c) of section 1083 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. § 3. Subdivision (c) of section 11-1783 of the administrative code of the city of New York is amended by adding a new paragraph 9 to read as follows: (9) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVI- SION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED. § 4. This act shall take effect immediately and shall apply to amended returns filed on or after the effective date of this act. PART I Section 1. Paragraph 1 of subdivision (d) of section 658 of the tax law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: (1) The commissioner of taxation and finance may prescribe regulations and instructions requiring returns of information to be made and filed on or before February twenty-eighth of each year as to the payment or crediting in any calendar year of amounts of six hundred dollars or more to any taxpayer under this article. Such returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal or payment of interest, rents, salaries, wages, premiums, annuities, compensations, remunera- tions, emoluments or other fixed or determinable gains, profits or income, except interest coupons payable to bearer. Information required to be furnished pursuant to paragraph four of subsection (a) of section six hundred seventy-four on a quarterly combined withholding and wage reporting return covering [the last] EACH calendar quarter of each year and relating to tax withheld on wages paid by an employer to an employee for [the full] EACH calendar [year] QUARTER, shall constitute the return of information required to be made under this section with respect to such wages. § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section 674 of the tax law, as amended by section 1 of subpart E of part VI of chap- ter 57 of the laws of 2009, is amended to read as follows: (A) All employers described in paragraph one of subsection (a) of section six hundred seventy-one of this part, including those whose wages paid are not sufficient to require the withholding of tax from the wages of any of their employees, all employers required to provide the wage reporting information for the employees described in subdivision one of section one hundred seventy-one-a of this chapter, and all S. 7509--A 18 A. 9509--A employers liable for unemployment insurance contributions or for payments in lieu of such contributions pursuant to article eighteen of the labor law, shall file a quarterly combined withholding, wage report- ing and unemployment insurance return detailing the preceding calendar quarter's withholding tax transactions, such quarter's wage reporting information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such quarter's unemployment insurance contributions, and such other related information as the commissioner of taxation and finance or the commis- sioner of labor, as applicable, may prescribe. [In addition, the return covering the last calendar quarter of each year shall also include with- holding reconciliation information for such calendar year.] Such returns shall be filed no later than the last day of the month following the last day of each calendar quarter. § 3. Paragraph 3 of subsection (v) of section 685 of the tax law, as amended by chapter 477 of the laws of 1998, is amended to read as follows: (3) Failure to provide complete and correct employee withholding reconciliation information. In the case of a failure by an employer to provide complete and correct [annual] QUARTERLY withholding information relating to individual employees on a quarterly combined withholding, wage reporting and unemployment insurance return covering [the last] EACH calendar quarter of a year, such employer shall, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, pay a penalty equal to the product of fifty dollars multiplied by the number of employees for whom such information is incomplete or incorrect; provided, however, that if the number of such employees cannot be determined from the quarterly combined withholding, wage reporting and unemployment insurance return, the commissioner may utilize any information in the commissioner's possession in making such determination. The total amount of the penalty imposed pursuant to this paragraph on an employer for any such failure for [the last] EACH calen- dar quarter of a year shall not exceed ten thousand dollars. § 4. This act shall take effect immediately and shall apply to calen- dar quarters beginning on or after January 1, 2019. PART J Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as amended by section 1 of part DD of chapter 407 of the laws of 1999, is amended to read as follows: (i) The receipts from every sale, OTHER THAN SALES FOR RESALE, of beer, wine or other alcoholic beverages or any other drink of any nature, or from every sale, OTHER THAN SALES FOR RESALE, of food and drink of any nature or of food alone, when sold in or by restaurants, taverns or other establishments in this state, or by caterers, including in the amount of such receipts any cover, minimum, entertainment or other charge made to patrons or customers (except those receipts taxed pursuant to subdivision (f) of this section): (1) in all instances where the sale is for consumption on the premises where sold; (2) in those instances where the vendor or any person whose services are arranged for by the vendor, after the delivery of the food or drink by or on behalf of the vendor for consumption off the premises of the vendor, serves or assists in serving, cooks, heats or provides other services with respect to the food or drink; and S. 7509--A 19 A. 9509--A (3) in those instances where the sale is made through a vending machine that is activated by use of coin, currency, credit card or debit card (except the sale of drinks in a heated state made through such a vending machine) or is for consumption off the premises of the vendor, except where food (other than sandwiches) or drink or both are (A) sold in an unheated state and, (B) are of a type commonly sold for consump- tion off the premises and in the same form and condition, quantities and packaging, in establishments which are food stores other than those principally engaged in selling foods prepared and ready to be eaten. § 2. This act shall take effect June 1, 2018 and shall apply to sales made on and after such date. PART K Section 1. The tax law is amended by adding a new section 171-z to read as follows: § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING UNCLAIMED FUNDS. 1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED TO RELEASE TO THE COMPTROLLER INFORMATION REGARDING FIXED AND FINAL UNWARRANTED DEBTS OF TAXPAYERS FOR PURPOSES OF COLLECTING UNCLAIMED FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED DEBTS OWED BY TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX, INTER- EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND A WARRANT HAS NOT BEEN FILED; AND THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO- RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY, PARTNER, MEMBER, MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI- TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE STATE. THIS SECTION SHALL NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED THE STATE FROM UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW. 2. THE COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY TAXPAYER INFORMA- TION RECEIVED UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER OR STAFF OF THE DEPARTMENT OR STAFF OF THE DEPARTMENT OF AUDIT AND CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION. § 2. This act shall take effect immediately. PART L Section 1. Subdivision 2 of section 136 of the social services law, as amended by section 24 of part B of chapter 436 of the laws of 1997, is amended to read as follows: 2. All communications and information relating to a person receiving public assistance or care obtained by any social services official, service officer, or employee in the course of his or her work shall be considered confidential and, except as otherwise provided in this section, shall be disclosed only to the commissioner, or his or her authorized representative, the commissioner of labor, or his or her authorized representative, the commissioner of health, or his or her authorized representative, THE COMMISSIONER OF TAXATION AND FINANCE, OR HIS OR HER AUTHORIZED REPRESENTATIVE (OTHER THAN THE DISCLOSURE OF INFORMATION THAT HAS BEEN PROHIBITED BY FEDERAL LAW), the welfare S. 7509--A 20 A. 9509--A inspector general, or his or her authorized representative, the county board of supervisors, city council, town board or other board or body authorized and required to appropriate funds for public assistance and care in and for such county, city or town or its authorized represen- tative or, by authority of the county, city or town social services official, to a person or agency considered entitled to such information. Nothing herein shall preclude a social services official from report- ing to an appropriate agency or official, including law enforcement agencies or officials, known or suspected instances of physical or mental injury, sexual abuse or exploitation, sexual contact with a minor or negligent treatment or maltreatment of a child of which the official becomes aware in the administration of public assistance and care nor shall it preclude communication with the federal immigration and natur- alization service regarding the immigration status of any individual. § 2. This act shall take effect immediately. PART M Section 1. The tax law is amended by adding a new section 44 to read as follows: § 44. INVESTMENT MANAGEMENT SERVICES. (A) FOR PURPOSES OF THIS SECTION, THE TERM "INVESTMENT MANAGEMENT SERVICES" TO A PARTNERSHIP, S CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING THE PURCHASE OR SALE OF SECURITIES AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (C) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE THEREOF, REAL ESTATE HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (E) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE, OR OPTIONS OR DERIVATIVE CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING, OR DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT TO THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI- VISION. (B) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS. NOTWITHSTANDING ANY STATE OR FEDERAL LAW TO THE CONTRARY: (1) WHERE A PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER FOR PURPOSES OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE SHARE OF INCOME, GAIN, LOSS AND DEDUCTION, INCLUDING ANY GUARANTEED PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE WOULD HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES FOR THE PARTNERSHIP. INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS A BUSINESS RECEIPT FOR SERVICES AND FOR PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION OR OCCUPATION. PROVIDED, HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE BEEN DETERMINED IF THE PARTNER PERFORMED NO INVESTMENT MANAGEMENT SERVICES SHALL NOT BE LESS THAN ZERO. (2) WHERE A SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A SHAREHOLDER FOR PURPOSES OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE- HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT IS IN EXCESS OF THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE- HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES. INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF S. 7509--A 21 A. 9509--A THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION OR OCCUPATION. PROVIDED, HOWEVER, THE AMOUNT OF THE PRO RATA SHARE THAT WOULD HAVE BEEN DETERMINED IF THE SHAREHOLDER PERFORMED NO SERVICES SHALL NOT BE LESS THAN ZERO. (3) A PARTNER OR SHAREHOLDER WILL NOT BE DEEMED TO BE PROVIDING INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION IF AT LEAST EIGHTY PERCENT OF THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER- SHIP OR S CORPORATION DURING THE TAXABLE YEAR CONSIST OF REAL ESTATE HELD FOR RENTAL OR INVESTMENT. (C) IN ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY CORPORATION, PARTNER OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT TO AN ADDITIONAL TAX, REFERRED TO AS THE "CARRIED INTEREST FAIRNESS FEE". SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE OF A CORPORATION OR SHAREHOLDER OF AN S CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT APPORTIONED TO THE STATE BY APPLYING THE CORPORATION'S OR S CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID- ING SUCH INVESTMENT MANAGEMENT SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES AS DETERMINED UNDER SECTION SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN ACCORDANCE WITH ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS- LATIVE BILL DRAFTING COMMISSION THAT FEDERAL LEGISLATION HAS BEEN ENACTED THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION. § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law, as amended by section 5 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (a) (i) The term "investment income" means income, including capital gains in excess of capital losses, from investment capital, to the extent included in computing entire net income, less, (A) in the discretion of the commissioner, any interest deductions allowable in computing entire net income which are directly or indirectly attribut- able to investment capital or investment income, AND (B) ANY NET CAPITAL GAIN INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED AS A BUSINESS RECEIPT PURSUANT TO SECTION FORTY-FOUR OF THIS CHAPTER; provided, however, that in no case shall investment income exceed entire net income. (ii) If the amount of interest deductions subtracted under subparagraph (i) of this paragraph exceeds investment income, the excess of such amount over investment income must be added back to entire net income. (iii) If the taxpayer's investment income determined without regard to the interest deductions subtracted under subparagraph (i) of this paragraph comprises more than eight percent of the taxpayer's entire net income, investment income determined without regard to such interest deductions cannot exceed eight percent of the taxpayer's entire net income. § 3. Subsection (b) of section 617 of the tax law, as amended by chap- ter 606 of the laws of 1984, is amended to read as follows: (b) Character of items. [Each] EXCEPT AS PROVIDED IN SECTION FORTY- FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income, gain, loss, or deduction shall have the same character for a partner or S. 7509--A 22 A. 9509--A shareholder under this article as for federal income tax purposes. Where an item is not characterized for federal income tax purposes, it shall have the same character for a partner or shareholder as if realized directly from the source from which realized by the partnership or S corporation or incurred in the same manner as incurred by the partner- ship or S corporation. § 4. Subsection (d) of section 631 of the tax law, as amended by chap- ter 28 of the laws of 1987, is amended to read as follows: (d) Purchase and sale for own account.-- A nonresident, other than a dealer holding property primarily for sale to customers in the ordinary course of his OR HER trade or business OR A PARTNER OR SHAREHOLDER PERFORMING INVESTMENT MANAGEMENT SERVICES AS DESCRIBED IN SECTION FORTY-FOUR OF THIS CHAPTER, shall not be deemed to carry on a business, trade, profession or occupation in this state solely by reason of the purchase and sale of property or the purchase, sale or writing of stock option contracts, or both, for his own account. § 5. The opening paragraph of subsection (b) of section 632 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows: [In] EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS CHAP- TER, IN determining the sources of a nonresident partner's income, no effect shall be given to a provision in the partnership agreement which-- § 6. For taxable years beginning on or after January 1, 2018 and before January 1, 2019, (i) no addition to tax under subsection (c) of section 685 or subsection (c) of section 1085 of the tax law shall be imposed with respect to any underpayment attributable to the amendments made by this act of any estimated taxes that are required to be paid prior to the effective date of this act, provided that the taxpayer timely made those payments; and (ii) the required installment of esti- mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of subsection (c) of section 685 of the tax law, and the exception to addi- tion for underpayment of estimated tax described in paragraph 1 or 2 of subsection (d) of section 1085 of the tax law, in relation to the preceding year's return, shall be calculated as if the amendments made by this act had been in effect for that entire preceding year. § 7. This act shall take effect upon the enactment into law by the states of Connecticut, New Jersey, Massachusetts and Pennsylvania of legislation having substantially the same effect as this act and the enactments by such states have taken effect in each state and shall apply for taxable years beginning on or after such date; provided, however, if the states of Connecticut, New Jersey, Massachusetts and Pennsylvania have already enacted such legislation, this act shall take effect immediately and shall apply for taxable years beginning on or after January 1, 2018; provided further that the commissioner of taxa- tion and finance shall notify the legislative bill drafting commission upon the enactment of such legislation by the states of Connecticut, New Jersey, Massachusetts and Pennsylvania in order that such commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law. PART N S. 7509--A 23 A. 9509--A Section 1. Section 2016 of the tax law, as amended by chapter 401 of the laws of 1987, is amended to read as follows: § 2016. Judicial review. A decision of the tax appeals tribunal, which is not subject to any further administrative review, shall finally and irrevocably decide all the issues which were raised in proceedings before the division of tax appeals upon which such decision is based unless, within four months after notice of such decision is served by the tax appeals tribunal upon every party to the proceeding before such tribunal by certified mail or personal service, the petitioner who commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI- TION for judicial review in the manner provided by article seventy-eight of the civil practice law and rules, except as otherwise provided in this [section] CHAPTER. Such service by certified mail shall be complete upon deposit of such notice, enclosed in a post-paid properly addressed wrapper, in a post office or official depository under the exclusive care and custody of the United States postal service. [The] WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION shall designate the tax appeals tribunal and the commissioner [of taxation and finance] as respondents in the proceeding for judicial review. WHERE THE COMMISSIONER FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION SHALL DESIGNATE THE TAX APPEALS TRIBUNAL AND THE PETITIONER WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS RESPOND- ENTS IN THE PROCEEDING FOR JUDICIAL REVIEW. The tax appeals tribunal shall not participate in proceedings for judicial review of its deci- sions and such proceedings for judicial review shall be commenced in the appellate division of the supreme court, third department. In all other respects the provisions and standards of article seventy-eight of the civil practice law and rules shall apply. The record to be reviewed in such proceedings for judicial review shall include the determination of the administrative law judge, the decision of the tax appeals tribunal, the stenographic transcript of the hearing before the administrative law judge, the transcript of any oral proceedings before the tax appeals tribunal and any exhibit or document submitted into evidence at any proceeding in the division of tax appeals upon which such decision is based. § 2. This act shall take effect immediately and shall apply to deci- sions and orders issued by the tax appeals tribunal on or after such date. PART O Section 1. Subparagraph (B) of paragraph 1 of subsection (b) of section 605 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows: (B) who [is not domiciled in this state but] maintains a permanent place of abode in this state and spends in the aggregate more than one hundred eighty-three days of the taxable year in this state, WHETHER OR NOT DOMICILED IN THIS STATE FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law, as amended by chapter 225 of the laws of 1977, is amended to read as follows: (2) who [is not domiciled in such city but] maintains a permanent place of abode in such city and spends in the aggregate more than one S. 7509--A 24 A. 9509--A hundred eighty-three days of the taxable year in such city, WHETHER OR NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 3. Subparagraph (B) of paragraph 1 of subdivision (b) of section 11-1705 of the administrative code of the city of New York, as amended by chapter 333 of the laws of 1987, is amended to read as follows: (B) who [is not domiciled in this city but] maintains a permanent place of abode in this city and spends in the aggregate more than one hundred eighty-three days of the taxable year in this city, WHETHER OR NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 4. This act shall take effect immediately and shall apply to all taxable years for which the statute of limitations for seeking a refund or assessing additional tax is still open. PART P Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax law, as amended by section 1 of part L1 of chapter 109 of the laws of 2006, is amended to read as follows: (1) A resident taxpayer shall be allowed a credit as provided herein equal to the greater of one hundred dollars times the number of qualify- ing children of the taxpayer or the applicable percentage of the child tax credit allowed the taxpayer under section twenty-four of the inter- nal revenue code for the same taxable year for each qualifying child. Provided, however, in the case of a taxpayer whose federal adjusted gross income exceeds the applicable threshold amount set forth by section 24(b)(2) of the Internal Revenue Code, the credit shall only be equal to the applicable percentage of the child tax credit allowed the taxpayer under section 24 of the Internal Revenue Code for each qualify- ing child. For the purposes of this subsection, a qualifying child shall be a child who meets the definition of qualified child under section 24(c) of the internal revenue code and is at least four years of age. The applicable percentage shall be thirty-three percent. FOR PURPOSES OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL REVENUE CODE SHALL BE A REFERENCE TO SUCH SECTION AS IT EXISTED IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 2. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2018. PART Q Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as amended by section 1 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the S. 7509--A 25 A. 9509--A taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as amended by section 2 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as amended by section 3 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which S. 7509--A 26 A. 9509--A the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 4. This act shall take effect immediately. PART R Section 1. Subdivision (c) of section 25-a of the labor law, as amended by section 1 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (c) A qualified employer shall be entitled to a tax credit equal to (1) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (2) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (3) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI- SION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full time. The tax credits shall be claimed by the qualified employer as specified in subdivision thirty-six of section two hundred ten-B and subsection (tt) of section six hundred six of the tax law. § 2. Subdivisions (d), (e) and (f) of section 25-a of the labor law, subdivisions (d) and (e) as amended by section 1 of subpart A of part N S. 7509--A 27 A. 9509--A of chapter 59 of the laws of 2017 and subdivision (f) as amended by section 1 of part AA of chapter 56 of the laws of 2015, are amended to read as follows: (d) To participate in the program established under this section, an employer must submit an application (in a form prescribed by the commis- sioner) to the commissioner after January first, two thousand twelve but no later than November thirtieth, two thousand twelve for program one, after January first, two thousand fourteen but no later than November thirtieth, two thousand fourteen for program two, after January first, two thousand fifteen but no later than November thirtieth, two thousand fifteen for program three, after January first, two thousand sixteen but no later than November thirtieth, two thousand sixteen for program four, after January first, two thousand seventeen but no later than November thirtieth, two thousand seventeen for program five, after January first, two thousand eighteen but no later than November thirtieth, two thousand eighteen for program six, after January first, two thousand nineteen but no later than November thirtieth, two thousand nineteen for program seven, after January first, two thousand twenty but no later than Novem- ber thirtieth, two thousand twenty for program eight, after January first, two thousand twenty-one but no later than November thirtieth, two thousand twenty-one for program nine, and after January first, two thou- sand twenty-two but no later than November thirtieth, two thousand twen- ty-two for program ten. The qualified employees must start their employ- ment on or after January first, two thousand twelve but no later than December thirty-first, two thousand twelve for program one, on or after January first, two thousand fourteen but no later than December thirty- first, two thousand fourteen for program two, on or after January first, two thousand fifteen but no later than December thirty-first, two thou- sand fifteen for program three, on or after January first, two thousand sixteen but no later than December thirty-first, two thousand sixteen for program four, on or after January first, two thousand seventeen but no later than December thirty-first, two thousand seventeen for program five, on or after January first, two thousand eighteen but no later than December thirty-first, two thousand eighteen for program six, on or after January first, two thousand nineteen but no later than December thirty-first, two thousand nineteen for program seven, on or after Janu- ary first, two thousand twenty but no later than December thirty-first, two thousand twenty for program eight, on or after January first, two thousand twenty-one but no later than December thirty-first, two thou- sand twenty-one for program nine, and on or after January first, two thousand twenty-two but no later than December thirty-first, two thou- sand twenty-two for program ten. [The commissioner shall establish guidelines and criteria that specify requirements for employers to participate in the program including criteria for certifying qualified employees, ensuring that the process established will minimize any undue delay in issuing the certificate of eligibility. Any regulations that the commissioner determines are necessary may be adopted on an emergency basis notwithstanding anything to the contrary in section two hundred two of the state administrative procedure act. Such requirements may include the types of industries that the employers are engaged in. The commissioner may give preference to employers that are engaged in demand occupations or industries, or in regional growth sectors, including but not limited to those identified by the regional economic development councils, such as clean energy, healthcare, advanced manufacturing and conservation. In addition, the commissioner shall give preference to S. 7509--A 28 A. 9509--A employers who offer advancement and employee benefit packages to the qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF TAXA- TION AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS OF EMPLOYERS THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE. (e) If, after reviewing the application submitted by an employer, the commissioner determines that such employer is eligible to participate in the program established under this section, the commissioner shall issue the employer a PRELIMINARY certificate of eligibility that establishes the employer as a qualified employer. The PRELIMINARY certificate of eligibility shall specify the maximum amount of tax credit that the employer [will] MAY be allowed to claim and the program year under which it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT THE EMPLOYER IS ALLOWED TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C) OF THIS SECTION. (f) The commissioner shall annually publish a report. Such report must contain the names and addresses of any employer issued a PRELIMINARY certificate of eligibility under this section, [and] the [maximum] amount of New York youth works tax credit allowed to the QUALIFIED employer as specified on [such] AN ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT AND ANY OTHER INFORMATION AS DETERMINED BY THE COMMISSIONER. § 3. Section 25-a of the labor law is amended by adding three new subdivisions (e-1), (e-2) and (e-3) to read as follows: (E-1)(1) TO RECEIVE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR BEFORE JANUARY THIRTY- FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY THE COMMISSIONER. THE REPORT MUST DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE COMMIS- SIONER SHALL ISSUE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT. SUCH CERTIFICATE SHALL INCLUDE, IN ADDITION TO ANY OTHER INFORMATION THE COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION: (I) THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE QUALIFIED EMPLOYER; (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD; (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED EMPLOYER IS ENTITLED FOR THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL FINAL CERTIFICATE IS ISSUED, WHICH ACTUAL AMOUNT CANNOT EXCEED THE AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS THAN SUCH AMOUNT; AND (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT. (E-2) IN DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE S. 7509--A 29 A. 9509--A ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL YEAR OF CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF SUBDIVISION (C) OF THIS SECTION. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT IS ISSUED. (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD- ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM- INARY CERTIFICATE OF ELIGIBILITY AND ANNUAL FINAL CERTIFICATE OF TAX CREDIT. ANY REGULATIONS THAT THE COMMISSIONER DETERMINES ARE NECESSARY MAY BE ADOPTED ON AN EMERGENCY BASIS NOTWITHSTANDING ANYTHING TO THE CONTRARY IN SECTION TWO HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCE- DURE ACT. SUCH REQUIREMENTS MAY INCLUDE THE TYPES OF INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN. THE COMMISSIONER MAY GIVE PREFERENCE TO EMPLOYERS THAT ARE ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING BUT NOT LIMITED TO THOSE IDENTIFIED BY THE REGIONAL ECONOMIC DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY, HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION. IN ADDITION, THE COMMISSIONER SHALL GIVE PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS. § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 2 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA- GRAPH by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS S. 7509--A 30 A. 9509--A SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the quali- fied employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 4 of this act, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(i) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-FIVE-A OF THE LABOR LAW. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR S. 7509--A 31 A. 9509--A WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM- PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 6. Paragraph (c) of subdivision 36 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may release the names and addresses of any taxpayer claiming this credit and the amount of the credit earned by the taxpayer. Provided, however, if a taxpayer claims this credit because it is a member of a limited liability company or a partner in a partnership, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 3 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has S. 7509--A 32 A. 9509--A been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liabil- ity company or S corporation. For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 7 of this act, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(A) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY- FIVE-A OF THE LABOR LAW. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has [been certified by] RECEIVED ITS ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM the commissioner of labor as a qualified employer pursu- ant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liability company or S corporation. [For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- S. 7509--A 33 A. 9509--A tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends.] IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY- ER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law, as added by section 3 of part D of chapter 56 of the laws of 2011, is amended to read as follows: (3) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may release the names and addresses of any taxpayer claiming this credit and the amount of the credit earned by the taxpayer. Provided, however, if a taxpayer claims this credit because it is a member of a limited liabil- ity company, a partner in a partnership, or a shareholder in a subchap- ter S corporation, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 10. This act shall take effect immediately, provided however that (i) section one of this act shall apply to tax years beginning on or after January 1, 2018; (ii) sections four and seven of this act shall apply to tax years beginning on or after January 1, 2018 and before January 1, 2019; and (iii) sections two, three, five, six, eight, and nine of this act shall take effect January 1, 2019 and shall apply to tax years beginning on or after January 1, 2019. PART S Section 1. Section 33 of the tax law, as added by section 1 of part Y of chapter 57 of the laws of 2010, is amended to read as follows: § 33. Temporary deferral of certain tax credits. 1. (a) For taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE, the excess over two million dollars of the total amount of the tax credits speci- fied in subdivision three of this section that in each of those taxable years would otherwise be used to reduce the taxpayer's tax liability to the amount otherwise specified in this chapter or be refunded or credit- ed as an overpayment will be deferred to and used or refunded in taxable years beginning on or after January first, two thousand [thirteen] TWEN- TY-ONE in accordance with the provisions of section thirty-four of this article. Interest shall not be paid on the amounts of credit deferred. (b) To determine the amount of each tax credit allowed for the taxable year to be used, refunded or credited as an overpayment the taxpayer shall multiply the amount of each credit subject to deferral that would S. 7509--A 34 A. 9509--A have been used, refunded or credited as an overpayment in the absence of this section by a fraction, the numerator of which is two million dollars, and the denominator of which is the total amount of the taxpay- er's credits subject to deferral pursuant to subdivision three of this section that would have been used, refunded or credited as an overpay- ment for the taxable year in the absence of this section. The product is the amount of such credit that is not subject to deferral and thus allowed to be used, refunded or credited as an overpayment for the taxa- ble year. 2. Taxpayers shall calculate and make any estimated tax payments required to be made by taking into account the deferral of credits required by this section. Taxpayers shall calculate any mandatory first installment payments made on or after the effective date of this section as if the deferral of credits required by this section had been in effect for the taxable year upon which that installment is based. In addition, for taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [eleven] NINETEEN, (a) no addition to tax under subsection (c) of section six hundred eighty-five of this chapter or subsection (c) of section one thousand eighty-five of this chapter shall be imposed with respect to any underpayment attributable to the deferral required by this section of any estimated taxes that are required to be paid prior to the enact- ment of this section, provided that the taxpayer timely made those payments; and (b) the required installment of estimated tax described in clause (ii) of subparagraph (B) of paragraph three of subsection (c) of section six hundred eighty-five of this chapter, and the exception to addition for underpayment of estimated tax described in paragraph one or two of subsection (d) of section one thousand eighty-five of this chap- ter, in relation to the preceding year's return, shall be calculated as if the deferral required by this section had been in effect for that entire preceding year. 3. (a) This section shall apply to the credits allowed under the following provisions in article nine-a of this chapter and any applica- ble counterpart provisions in articles nine, twenty-two, [thirty-two] and thirty-three of this chapter: Section [210(12)] 210-B(1) investment tax credit Section [210(12-B)] 210-B(3) empire zone investment tax credit Section [210(12-C)] 210-B(4) empire zone employment incentive credit Section [210(12-D)] 210-B(2) employment incentive credit Section [210(12-E)] 210-B(7) QETC employment credit Section [210(12-F)] 210-B(8) QETC capital tax credit [Section 210(12-G) QETC facilities, operations, and training credit] Section [210(17)] 210-B(9) special additional mortgage recording tax credit [Section 210(19) empire zone wage tax credit Section 210(20) empire zone capital tax credit] Section [210(21-a)] 210-B(10) credit for servicing certain mortgages Section [210(23)] 210-B(12) credit for employment of persons with disabilities Section [210(24)] 210-B(30) alternative fuels AND ELECTRIC VEHICLE RECHARGING PROPERTY credit Section [210(25)] 210-B(13) credit for purchase of an automated external defibrillator Section [210(27)] 210-B(5) QEZE credit for real property taxes Section [210(28)] 210-B(6) QEZE tax reduction credit Section [210(30)] 210-B(15) low income housing credit S. 7509--A 35 A. 9509--A Section [210(31)] 210-B(16) green building credit Section [210(33)] 210-B(17) brownfield redevelopment tax credit Section [210(34)] 210-B(18) remediated brownfield credit for real property taxes for qualified sites Section [210(35)] 210-B(19) environmental remediation insurance credit Section [210(37)] 210-B(21) security training tax credit [Section 210(37) credit for fuel cell electric generating equipment expenditures] Section [210(38)] 210-B(22) conservation easement tax credit [Section 210(38) empire state commercial production credit] Section [210(38)] 210-B(24) biofuel production credit Section [210(39)] 210-B(25) clean heating fuel credit Section [210(40)] 210-B(26) credit for rehabilitation of historic properties Section [210(40)] 210-B(38) credit for companies who provide transpor- tation to individuals with disabilities SECTION 210-B(11) AGRICULTURAL PROPERTY TAX CREDIT SECTION 210-B(35) ECONOMIC TRANSFORMATION AND FACILITY REDEVELOPMENT CREDIT SECTION 210-B(39) ALCOHOLIC BEVERAGE PRODUCTION CREDIT SECTION 210-B(40) MINIMUM WAGE REIMBURSEMENT CREDIT SECTION 210-B(41) THE TAX-FREE NY AREA TAX ELIMINATION CREDIT SECTION 210-B(43) REAL PROPERTY TAX CREDIT FOR MANUFACTURERS SECTION 210-B(44) THE TAX-FREE NY AREA EXCISE TAX ON TELECOMMUNICATION SERVICES CREDIT SECTION 210-B(47) MUSICAL AND THEATRICAL PRODUCTION CREDIT SECTION 210-B(48) WORKERS WITH DISABILITIES TAX CREDIT SECTION 210-B(51) FARM WORKFORCE RETENTION CREDIT (b) This section shall also apply to the credits allowed by the following sections: [Section 186-a(9) power for jobs credit] Section 606(g-1) solar energy system equipment credit Section 606(pp) historic homeownership rehabilitation credit Section 1511(k) credit for certain investments in certified capital companies § 2. Subdivisions 1 and 2 of section 34 of the tax law, as added by section 2 of part Y of chapter 57 of the laws of 2010, are amended to read as follows: 1. The amounts of nonrefundable credits that are deferred pursuant to section thirty-three of this article in taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE shall be accumulated and constitute the taxpayer's temporary deferral nonrefundable payout cred- it. The taxpayer may first claim this credit in the taxable year begin- ning on or after January first, two thousand [thirteen] TWENTY-ONE and before January first, two thousand [fourteen] TWENTY-TWO. The taxpayer shall be allowed to claim this credit until the accumulated amounts are exhausted. The credit shall be allowed against the taxpayer's tax as provided in the provisions referenced in paragraph (a) of subdivision three of this section. 2. The amounts of refundable credits that are deferred pursuant to section thirty-three of this article in taxable years beginning on or after January first, two thousand [ten] EIGHTEEN and before January first, two thousand [thirteen] TWENTY-ONE shall be accumulated and constitute the taxpayer's temporary deferral refundable payout credit. In the taxable year beginning on or after January first, two thousand S. 7509--A 36 A. 9509--A [thirteen] TWENTY-ONE and before January first, two thousand [fourteen] TWENTY-TWO, the taxpayer shall be allowed to claim a credit equal to fifty percent of the amount accumulated. In the taxable year beginning on or after January first, two thousand [fourteen] TWENTY-TWO and before January first, two thousand [fifteen] TWENTY-THREE, the taxpayer shall be allowed to claim a credit equal to seventy-five percent of the balance of the amount accumulated. In the taxable year beginning on or after January first, two thousand [fifteen] TWENTY-THREE and before January first, two thousand [sixteen] TWENTY-FOUR, the taxpayer shall be allowed to claim a credit equal to the remaining balance of the amount accumulated. The credit shall be allowed against the taxpayer's tax as provided in the provisions referenced in paragraph (b) of subdivision three of this section. § 3. This act shall take effect immediately. PART T Section 1. Subdivision (a) of section 1412 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (a) A grantor or grantee claiming to have erroneously paid the tax imposed by this article or some other person designated by such grantor or grantee may file an application for refund within [two] THREE years from the date of payment. Such application shall be filed with the commissioner [of taxation and finance] on a form which he shall prescribe. § 2. Subdivision (b) of section 1402-a of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (b) Notwithstanding the provisions of subdivision (a) of section four- teen hundred four of this article, the additional tax imposed by this section shall be paid by the grantee. If the grantee [is exempt from such tax, the grantor shall have the duty to pay the tax] HAS FAILED TO PAY THE TAX IMPOSED BY THIS ARTICLE AT THE TIME REQUIRED BY SECTION FOURTEEN HUNDRED TEN OF THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX, THE GRANTOR SHALL HAVE THE DUTY TO PAY THE TAX. WHERE THE GRANTOR HAS THE DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY, SUCH TAX SHALL BE THE JOINT AND SEVERAL LIABILITY OF THE GRANTOR AND THE GRANTEE. § 3. This act shall take effect immediately; provided, however, that section two of this act shall apply to conveyances occurring on or after the fifteenth day after this act shall have become a law. PART U Section 1. Subdivision 6 of section 470 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 6. "Wholesale price." The [established] INVOICE price for which a manufacturer OR OTHER PERSON sells tobacco products to a distributor, INCLUDING THE FEDERAL EXCISE TAXES PAID BY THE MANUFACTURER OR OTHER PERSON, before the allowance of any discount, trade allowance, rebate or other reduction. [In the absence of such an established price, a manufacturer's invoice price of any tobacco product shall be presumptive evidence of the whole- sale price of such tobacco product, and in its absence the price at which such tobacco products were purchased shall be presumed to be the wholesale price, unless evidence of a lower wholesale price shall be S. 7509--A 37 A. 9509--A established or any industry standard of markups relating to the purchase price in relation to the wholesale price shall be established.] § 2. This act shall take effect on September 1, 2018 and shall apply to all tobacco products possessed in this state for sale on or after such date. PART V Section 1. Subparagraph (A) of paragraph 1 of subdivision (b) of section 1105 of the tax law, as amended by section 9 of part S of chap- ter 85 of the laws of 2002, is amended to read as follows: (A) gas, electricity, refrigeration and steam, and gas, electric, refrigeration and steam service of whatever nature, INCLUDING THE TRANS- PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY, EVEN IF SOLD SEPARATELY; § 2. Section 1105-C of the tax law is REPEALED. § 3. Subparagraph (xi) of paragraph 4 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of the laws of 2016, is amended to read as follows: (xi) [shall provide that section eleven hundred five-C of this chapter does not apply to such taxes, and] shall tax receipts from every sale, other than sales for resale, of gas service or electric service of what- ever nature, including the transportation, transmission or distribution of gas or electricity, even if sold separately, at the rate set forth in clause one of subparagraph (i) of the opening paragraph of this section; § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- trative code of the city of New York, as amended by chapter 200 of the laws of 2009, is amended to read as follows: (8) [makes inapplicable section eleven hundred five-C of the tax law, and] imposes tax on receipts from every sale, other than sales for resale, of gas service or electric service of whatever nature, including the transportation, transmission or distribution of gas or electricity, even if sold separately, at the rate set forth in subdivision (a) of this section. § 5. This act shall take effect immediately; provided however that this act shall apply to sales made and services rendered on and after June 1, 2018 whether or not such sales and services are rendered under a prior contract. PART W Section 1. Subdivision (f) of section 1115 of the tax law, as amended by chapter 205 of the laws of 1968, is amended to read as follows: (f) (1) Services rendered by a veterinarian licensed and registered as required by the education law which constitute the practice of veteri- nary medicine as defined in said law, including hospitalization for which no separate boarding charge is made, shall not be subject to tax under paragraph (3) of subdivision (c) of section eleven hundred five, but the exemption allowed by this subdivision shall not apply to other services provided by a veterinarian to pets and other animals, includ- ing, but not limited to, boarding, grooming and clipping. Articles of tangible personal property designed for use in some manner relating to domestic animals or poultry, when sold by such a veterinarian, shall not be subject to tax under subdivision (a) of section eleven hundred five or under section eleven hundred ten. However, the sale of any such arti- cles of tangible personal property to a veterinarian shall not be deemed S. 7509--A 38 A. 9509--A a sale for resale within the meaning of [pargraph] PARAGRAPH (4) of subdivision (b) of section eleven hundred one and shall not be exempt from retail sales tax. (2) DRUGS OR MEDICINE SOLD TO OR USED BY A VETERINARIAN FOR USE IN RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION TO LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO A PERSON QUALIFYING FOR THE EXEMPTION PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY. § 2. Subdivision (a) of section 1119 of the tax law, as amended by chapter 686 of the laws of 1986 and as further amended by section 15 of part GG of chapter 63 of the laws of 2000, is amended to read as follows: (a) Subject to the conditions and limitations provided for herein, a refund or credit shall be allowed for a tax paid pursuant to subdivision (a) of section eleven hundred five or section eleven hundred ten (1) on the sale or use of tangible personal property if the purchaser or user, in the performance of a contract, later incorporates that tangible personal property into real property located outside this state, (2) on the sale or use of tangible personal property purchased in bulk, or any portion thereof, which is stored and not used by the purchaser or user within this state if that property is subsequently reshipped by such purchaser or user to a point outside this state for use outside this state, (3) on the sale to or use by a contractor or subcontractor of tangible personal property if that property is used by him solely in the performance of a pre-existing lump sum or unit price construction contract, (4) on the sale or use within this state of tangible personal property, not purchased for resale, if the use of such property in this state is restricted to fabricating such property (including incorporat- ing it into or assembling it with other tangible personal property), processing, printing or imprinting such property and such property is then shipped to a point outside this state for use outside this state, [(5) on the sale to or use by a veterinarian of drugs or medicine if such drugs or medicine are used by such veterinarian in rendering services, which are exempt pursuant to subdivision (f) of section eleven hundred fifteen of this chapter, to livestock or poultry used in the production for sale of tangible personal property by farming or if such drugs or medicine are sold to a person qualifying for the exemption provided for in paragraph (6) of subdivision (a) of section eleven hundred fifteen of this chapter for use by such person on such livestock or poultry,] or (6) on the sale of tangible personal property purchased for use in constructing, expanding or rehabilitating industrial or commercial real property (other than property used or to be used exclu- sively by one or more registered vendors primarily engaged in the retail sale of tangible personal property) located in an area designated as an empire zone pursuant to article eighteen-B of the general municipal law, but only to the extent that such property becomes an integral component part of the real property. (For the purpose of clause (3) of the preced- ing sentence, the term "pre-existing lump sum or unit price construction contract" shall mean a contract for the construction of improvements to real property under which the amount payable to the contractor or subcontractor is fixed without regard to the costs incurred by him in the performance thereof, and which (i) was irrevocably entered into prior to the date of the enactment of this article or the enactment of a law increasing the rate of tax imposed under this article, or (ii) resulted from the acceptance by a governmental agency of a bid accompa- S. 7509--A 39 A. 9509--A nied by a bond or other performance guaranty which was irrevocably submitted prior to such date.) Where the tax on the sale or use of such tangible personal property has been paid to the vendor, to qualify for such refund or credit, such tangible personal property must be incorpo- rated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was payable to the tax commission by the vendor pursuant to section eleven hundred thirty-seven. Where the tax on the sale or use of such tangible personal property was paid by the applicant for the credit or refund directly to the tax commission, to qualify for such refund or credit, such tangible personal property must be incorporated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was paya- ble to the tax commission by such applicant pursuant to this article. An application for a refund or credit pursuant to this section must be filed with such commission within the time provided by subdivision (a) of section eleven hundred thirty-nine. Such application shall be in such form as the tax commission may prescribe. Where an application for cred- it has been filed, the applicant may immediately take such credit on the return which is due coincident with or immediately subsequent to the time that he files his application for credit. However, the taking of the credit on the return shall be deemed to be part of the application for credit and shall be subject to the provisions in respect to applica- tions for credit in section eleven hundred thirty-nine as provided in subdivision (e) of such section. With respect to a sale or use described in clause (3) above where a pre-existing lump sum or unit price construction contract was irrevocably entered into prior to the date of the enactment of this article or the bid accompanied by the performance guaranty was irrevocably submitted to the governmental agency prior to such date, the purchaser or user shall be entitled to a refund or credit only of the amount by which the tax on such sale or use imposed under this article plus any tax imposed under the authority of article twen- ty-nine exceeds the amount computed by applying against such sale or use the local rate of tax, if any, in effect at the time such contract was entered into or such bid was submitted. In the case of the enactment of a law increasing the rate of tax imposed by this article, the purchaser or user shall be entitled only to a refund or credit of the amount by which the increased tax on such sale or use imposed under this article plus any tax imposed under the author- ity of article twenty-nine exceeds the amount computed by applying against such sale or use the state and local rates of tax in effect at the time such contract was entered into or such bid was submitted. § 3. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART X Section 1. Subdivision 1 of section 1131 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; and every operator of a hotel. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any S. 7509--A 40 A. 9509--A employee of a partnership, any employee or manager of a limited liabil- ity company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, OR HAS SO ACTED; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one OF THIS ARTICLE shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 2. Subdivision (a) of section 1133 of the tax law, as amended by chapter 621 of the laws of 1967, is amended to read as follows: (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI- SION AND IN section eleven hundred thirty-seven OF THIS PART, every person required to collect any tax imposed by this article shall be personally liable for the tax imposed, collected or required to be collected under this article. Any such person shall have the same right in respect to collecting the tax from his customer or in respect to nonpayment of the tax by the customer as if the tax were a part of the purchase price of the property or service, amusement charge or rent, as the case may be, and payable at the same time; provided, however, that the tax commission shall be joined as a party in any action or proceed- ing brought to collect the tax. (2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE: (I) THE COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A MEMBER OF A LIMITED LIABILITY COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH LIMITED PARTNER OR MEMBER WAS NOT UNDER A DUTY TO ACT FOR SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR RELIEF TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS HAS ACTED ON BEHALF OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER OR WHO HAS A PAST-DUE LIABILITY, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER. (II) SUCH LIMITED PARTNER OR MEMBER MUST SUBMIT AN APPLICATION FOR RELIEF, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN ALL MATERIAL RESPECTS. PROVIDING MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH APPLICATION SHALL DISQUALIFY SUCH LIMITED PARTNER OR MEMBER FOR THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY AGREEMENT WITH THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING STRICT LIABILITY FOR THE TOTAL AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI- VISION. S. 7509--A 41 A. 9509--A (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT- ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA- GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE COMMISSIONER, SHALL BE LIABLE FOR THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX LIABILITY OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY THAT REFLECTS SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY, WHICHEVER IS HIGHER. SUCH ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO AND INCLUDING THE DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SECTION ELEVEN HUNDRED FORTY-TWO OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA- NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF; AND (C) ANY PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT THE TIME SUCH PAYMENT WAS MADE. PROVIDED, HOWEVER, SUCH LIMITED PARTNER OR MEMBER SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS OR MEMBERS OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO ARE ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY SHALL NOT EXCEED THE TOTAL LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. § 3. This act shall take effect immediately. PART Y Section 1. Paragraph 1 of subdivision (a) of section 1115 of the tax law, as amended by section 1 of part II of chapter 59 of the laws of 2014, is amended to read as follows: (1) (A) Food, food products, beverages, dietary foods and health supplements, sold for human consumption but not including (i) candy and confectionery, (ii) fruit drinks which contain less than seventy percent of natural fruit juice, (iii) soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol- ic beverages, all of which shall be subject to the retail sales and compensating use taxes, whether or not the item is sold in liquid form. NOTHING IN THIS SUBPARAGRAPH SHALL BE CONSTRUED AS EXEMPTING FOOD OR DRINK FROM THE TAX IMPOSED UNDER SUBDIVISION (D) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE. [The] (B) UNTIL MAY THIRTY FIRST, TWO THOUSAND TWENTY, THE food and drink excluded from the exemption provided by [this paragraph under subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH (A) of this paragraph, AND BOTTLED WATER, shall be exempt under this [paragraph] SUBPARAGRAPH when sold for one dollar and fifty cents or less through any vending machine [activated by the use of] THAT ACCEPTS coin[,] OR currency[, credit card or debit card] ONLY OR WHEN SOLD FOR TWO DOLLARS OR LESS THROUGH ANY VENDING MACHINE THAT ACCEPTS ANY FORM OF PAYMENT OTHER THAN COIN OR CURRENCY, WHETHER OR NOT IT ALSO ACCEPTS COIN OR CURRENCY. [With the exception of the provision in this paragraph provid- ing for an exemption for certain food or drink sold for one dollar and S. 7509--A 42 A. 9509--A fifty cents or less through vending machines, nothing herein shall be construed as exempting food or drink from the tax imposed under subdivi- sion (d) of section eleven hundred five of this article.] § 2. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART Z Section 1. Section 2 of subpart R of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the expiration of the authorization to the county of Genesee to impose an additional one percent of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding any other provision of law to the contrary, the one percent increase in sales and compensating use taxes authorized for the county of Genesee until November 30, [2019] 2020 pursuant to clause (20) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, shall be divided in the same manner and proportion as the existing three percent sales and compensating use taxes in such county are divided. § 2. Section 2 of subpart Z of part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes by the county of Monroe, is amended to read as follows: § 2. Notwithstanding the provisions of subdivisions (b) and (c) of section 1262 and section 1262-g of the tax law, net collections, as such term is defined in section 1262 of the tax law, derived from the imposi- tion of sales and compensating use taxes by the county of Monroe at the additional rate of one percent as authorized pursuant to clause (25) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, which are in addition to the current net collections derived from the imposition of such taxes at the three percent rate authorized by the opening paragraph of section 1210 of the tax law, shall be distributed and allocated as follows: for the period of December 1, 2017 through November 30, [2019] 2020 in cash, five percent to the school districts in the area of the county outside the city of Rochester, three percent to the towns located within the county, one and one-quarter percent to the villages located within the county, and ninety and three-quarters percent to the city of Rochester and county of Monroe. The amount of the ninety and three-quarters percent to be distributed and allocated to the city of Rochester and county of Monroe shall be distributed and allocated to each so that the combined total distribution and allocation to each from the sales tax revenues pursuant to sections 1262 and 1262-g of the tax law and this section shall result in the same total amount being distributed and allocated to the city of Rochester and county of Monroe. The amount so distributed and allocated to the county shall be used for county purposes. The foregoing cash payments to the school districts shall be allocated on the basis of the enrolled public school pupils, thereof, as such term is used in subdivision (b) of section 1262 of the tax law, residing in the county of Monroe. The cash payments to the towns located within the county of Monroe shall be allocated on the basis of the ratio which the population of each town, exclusive of the population of any village or portion thereof located within a town, bears to the total population of the towns, exclusive of the population of the villages located within such towns. The cash payments to the villages located S. 7509--A 43 A. 9509--A within the county shall be allocated on the basis of the ratio which the population of each village bears to the total population of the villages located within the county. The term population as used in this section shall have the same meaning as used in subdivision (b) of section 1262 of the tax law. § 3. Section 3 of subpart EE of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authorization of the county of Onondaga to impose an additional rate of sales and compen- sating use taxes, is amended to read as follows: § 3. Notwithstanding any contrary provision of law, net collections from the additional one percent rate of sales and compensating use taxes which may be imposed by the county of Onondaga during the period commencing December 1, 2018 and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall not be subject to any revenue distribution agreement entered into under subdi- vision (c) of section 1262 of the tax law, but shall be allocated and distributed or paid, at least quarterly, as follows: (i) 1.58% to the county of Onondaga for any county purpose; (ii) 97.79% to the city of Syracuse; and (iii) .63% to the school districts in accordance with subdivision (a) of section 1262 of the tax law. § 4. Section 2 of subpart GG of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authority of the county of Orange to impose an additional rate of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, net collections from any additional rate of sales and compensating use taxes which may be imposed by the county of Orange during the period commencing December 1, 2017, and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall be paid to the county of Orange and shall be used by such county solely for county purposes and shall not be subject to any revenue distribution agreement entered into pursuant to the authority of subdivision (c) of section 1262 of the tax law. § 5. This act shall take effect immediately and shall be deemed to have been in full force and effect on June 29, 2017. PART AA Section 1. Section 1101 of the tax law is amended by adding a new subdivision (e) to read as follows: (E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE AND BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH MARKETPLACE SELLER OR SELLERS. A PERSON "FACILITATES A SALE OF TANGIBLE PERSONAL PROPERTY" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (I) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, BOOTH, CATALOG, AN INTERNET WEBSITE, OR SIMILAR FORUM; AND (II) SUCH PERSON OR AN AFFILIATE OF SUCH PERSON COLLECTS THE RECEIPTS PAID BY A CUSTOMER TO A MARKETPLACE SELLER FOR A SALE OF TANGIBLE PERSONAL PROPERTY, OR CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR PURPOSES OF THIS PARAGRAPH, TWO PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN THE OTHER, OR S. 7509--A 44 A. 9509--A WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER. NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH, A PERSON WHO FACILI- TATES SALES EXCLUSIVELY BY MEANS OF THE INTERNET IS NOT A MARKETPLACE PROVIDER FOR A SALES TAX QUARTER WHEN SUCH PERSON CAN SHOW THAT IT HAS FACILITATED LESS THAN ONE HUNDRED MILLION DOLLARS OF SALES ANNUALLY FOR EVERY CALENDAR YEAR AFTER TWO THOUSAND SIXTEEN. (2) MARKETPLACE SELLER. ANY PERSON, WHETHER OR NOT SUCH PERSON IS REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET- PLACE PROVIDER UNDER WHICH THE MARKETPLACE PROVIDER WILL FACILITATE SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF PARAGRAPH ONE OF THIS SUBDIVISION. § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap- ter 576 of the laws of 1994, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; [and] every operator of a hotel, AND EVERY MARKETPLACE PROVIDER WITH RESPECT TO SALES OF TANGIBLE PERSONAL PROPERTY IT FACILITATES AS DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liability compa- ny, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corpo- ration, partnership, limited liability company or individual proprietor- ship in complying with any requirement of this article; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 3. Section 1132 of the tax law is amended by adding a new subdivi- sion (l) to read as follows: (L)(1) A MARKETPLACE PROVIDER WITH RESPECT TO A SALE OF TANGIBLE PERSONAL PROPERTY IT FACILITATES: (I) SHALL HAVE ALL THE OBLIGATIONS AND RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING, BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE OF AUTHORITY, TO COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF- ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY SUBDIVISION (E) OF THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE PROVISIONS OF SUCH SUBDIVISIONS; AND (II) SHALL KEEP SUCH RECORDS AND INFORMATION AND COOPERATE WITH THE COMMISSIONER TO ENSURE THE PROPER COLLECTION AND REMITTANCE OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER. (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY TO COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH SALE IN ITS S. 7509--A 45 A. 9509--A TAXABLE RECEIPTS FOR PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART IF, IN REGARD TO SUCH SALE: (I) THE MARKETPLACE SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY THE MARKETPLACE SELLER FACILITATED BY SUCH MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (II) ANY FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER PROVIDING THE MARKETPLACE PROVIDER WITH INCORRECT INFORMATION. THIS PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIF- ICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH CERTIFICATE OF COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE MARKETPLACE SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF TANGIBLE PERSONAL PROPERTY BY A MARKETPLACE SELLER THAT ARE FACILITATED BY A MARKETPLACE PROVIDER WHO IS AFFILIATED WITH SUCH MARKETPLACE SELLER WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, THE MARKETPLACE SELLER SHALL BE DEEMED LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS PART. (3) THE COMMISSIONER MAY, IN HIS OR HER DISCRETION: (I) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A MARKETPLACE PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM SUCH MARKET- PLACE PROVIDER FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY, WITH RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY OCCURS IN THE STATE; AND (II) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE PROVIDER AND MARKETPLACE SELLER WILL HAVE THE SAME EFFECT AS A MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION. § 4. Section 1133 of the tax law is amended by adding a new subdivi- sion (f) to read as follows: (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR- MATION GIVEN TO THE MARKETPLACE PROVIDER BY THE MARKETPLACE SELLER. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE SELLER AND THE MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 46 of part K of chapter 61 of the laws of 2011, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the S. 7509--A 46 A. 9509--A provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE MARKETPLACE SELLER HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF- ICATE OF COLLECTION FROM THE MARKETPLACE PROVIDER OR THE MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THEMSELVES AND SUCH MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIR- TY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY IS ACCURATE. § 6. Section 1142 of the tax law is amended by adding two new subdivi- sions 15 and 16 to read as follows: 15. TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAS BEEN REVOKED AND, IF NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHER- WISE THAT A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF THE DUTY TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER ONLY IF, IN ADDITION TO THE CONDITIONS PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY. 16. TO ENFORCE THE PENALTIES IMPOSED ON NON-COLLECTING SELLERS AND NON-COLLECTING MARKETPLACE PROVIDERS PROVIDED BY SUBDIVISION (I) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART BY COMMENCING A PROCEED- ING UNDER ARTICLE SEVENTY-TWO OF THE CIVIL PRACTICE LAW AND RULES. THIS MEANS ENFORCING SUCH PENALTIES IS IN ADDITION TO ANY OTHER LAWFUL MEANS THE COMMISSIONER MAY USE TO ENFORCE SUCH PENALTIES. THE VENUE FOR SUCH PROCEEDING SHALL BE ALBANY COUNTY. § 7. The tax law is amended by adding a new section 1135-a to read as follows: § 1135-A. REPORTING REQUIREMENTS. (A) (1) THE FOLLOWING DEFINITIONS APPLY TO THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER: (A) NON-COLLECTING SELLER MEANS A PERSON WHO MAKES SALES OF TANGIBLE PERSONAL PROPERTY, THE USE OF WHICH IS TAXED BY THIS ARTICLE, BUT WHO IS NOT REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY PURPORTEDLY AS TAX IMPOSED BY THIS ARTICLE IN REGARD TO TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE. (B) NON-COLLECTING MARKETPLACE PROVIDER MEANS A MARKETPLACE PROVIDER, AS DEFINED BY SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, WHO IS NOT REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY PURPORTEDLY AS TAX IMPOSED BY THIS ARTICLE IN REGARD TO TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE. (C) NEW YORK PURCHASER MEANS ANY PERSON WHO PURCHASES TANGIBLE PERSONAL PROPERTY FOR DELIVERY TO A LOCATION IN THIS STATE. (D) LAST KNOWN ADDRESS OF A NEW YORK PURCHASER MEANS, FOR PURPOSES OF THIS SUBDIVISION, SUBDIVISION SIXTEEN OF SECTION ELEVEN HUNDRED FORTY- TWO, AND SUBDIVISION (I) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART, THE PURCHASER'S BILLING ADDRESS OR, IF UNKNOWN, THE PURCHASER'S S. 7509--A 47 A. 9509--A SHIPPING ADDRESS. IF NO BILLING OR SHIPPING ADDRESS IS KNOWN, THIS TERM SHALL MEAN THE PURCHASER'S LAST KNOWN E-MAIL ADDRESS. (2) THE FOLLOWING REQUIREMENTS APPLY TO A NON-COLLECTING SELLER: (A) A NON-COLLECTING SELLER'S RECORDS SHALL BE MADE AVAILABLE TO THE COMMISSIONER UPON REQUEST. THESE RECORDS SHALL INCLUDE, BUT ARE NOT LIMITED TO, EACH NEW YORK PURCHASER'S NAME AND LAST KNOWN ADDRESS AS DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS SUBDIVISION, AND THE TOTAL OF THE NON-COLLECTING SELLER'S RECEIPTS FROM THE PURCHASES OF THE NEW YORK PURCHASER. (B) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL FILE AN ANNUAL INFORMATION RETURN WITH THE COMMISSIONER. SUCH RETURN SHALL INCLUDE THE TOTAL OF THE NON- COLLECTING SELLER'S RECEIPTS FROM PURCHASES OF TANGIBLE PERSONAL PROPER- TY THAT WAS DELIVERED TO A LOCATION IN THIS STATE FOR THE CALENDAR YEAR COVERED BY THE RETURN, TOGETHER WITH SUCH OTHER INFORMATION THE COMMIS- SIONER MAY PRESCRIBE. SUCH RETURN SHALL BE FILED ON OR BEFORE JANUARY THIRTY-FIRST OF EACH YEAR AND SHALL COVER THE PRIOR CALENDAR YEAR, WITH THE FIRST SUCH RETURN DUE ON JANUARY THIRTY-FIRST, TWO THOUSAND TWENTY FOR THE CALENDAR YEAR TWO THOUSAND NINETEEN. (C) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL PROVIDE AN ANNUAL STATEMENT OF PURCHASES TO EACH NEW YORK PURCHASER FOR PURCHASES OF TANGIBLE PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE FROM SUCH SELLER DURING THE CALENDAR YEAR COVERED BY THE STATEMENT. SUCH ANNUAL STATEMENT SHALL INCLUDE: (I) A STATEMENT THAT SALES OR USE TAX WAS NOT COLLECTED ON THE PURCHASER'S TRANSACTIONS IN THE PRIOR CALENDAR YEAR AND THAT THE PURCHASER MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSION- ER; (II) A LIST OF TRANSACTIONS ENTERED INTO DURING THE PRIOR CALENDAR YEAR BY SUCH PURCHASER FOR DELIVERY TO A LOCATION INTO THIS STATE SHOW- ING, THE DATE OF EACH PURCHASE, A GENERAL DESCRIPTION OF EACH ITEM PURCHASED, AND THE AMOUNT PAID FOR EACH ITEM, INCLUDING ANY SHIPPING OR DELIVERY CHARGES; (III) INSTRUCTIONS FOR OBTAINING ADDITIONAL INFORMA- TION REGARDING WHETHER AND HOW TO REMIT THE SALES OR USE TAX TO THE COMMISSIONER; AND (IV) A STATEMENT THAT SUCH SELLERS MAY BE REQUIRED TO ANNUALLY REPORT THE AGGREGATE DOLLAR VALUE OF THE PURCHASER'S PURCHASES TO THE COMMISSIONER. SUCH STATEMENT SHALL BE SENT TO EACH NEW YORK PURCHASER ON OR BEFORE JANUARY THIRTY-FIRST OF EACH YEAR, STARTING IN THE YEAR TWO THOUSAND TWENTY, COVERING SALES MADE IN THE PRIOR CALENDAR YEAR. SUCH STATEMENT SHALL BE SENT BY MAIL IN AN ENVELOPE BEARING THE STATEMENT "IMPORTANT TAX INFORMATION" TO THE NEW YORK PURCHASER'S LAST KNOWN ADDRESS AS DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS SUBDIVISION, UNLESS THE PURCHASER'S LAST KNOWN ADDRESS IS AN E-MAIL ADDRESS, IN WHICH CASE THE STATEMENT IS TO BE SENT BY E-MAIL, THE SUBJECT LINE OF WHICH SHALL STATE "IMPORTANT TAX INFORMATION". (D) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI- SION, A NON-COLLECTING SELLER SHALL PROMINENTLY DISPLAY A NOTICE ON ALL ORDER FORMS, AND UPON EACH SALES RECEIPT OR OTHER MEMORANDUM OF THE PRICE, WHETHER ELECTRONIC OR ON PAPER, PROVIDED TO A NEW YORK PURCHASER MAKING A PURCHASE OF TANGIBLE PERSONAL PROPERTY TO BE DELIVERED TO A LOCATION IN THIS STATE, INCLUDING ANY SCREEN THAT SUMMARIZES THE TRANS- ACTION PRIOR TO THE COMPLETION OF THE SALE. SUCH NOTICE SHALL INDICATE THAT NEITHER NEW YORK STATE AND LOCAL SALES NOR USE TAX IS BEING COLLECTED OR REMITTED UPON THE TRANSACTION, AND THAT THE PURCHASER MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSIONER. (3) A NON-COLLECTING SELLER SHALL KEEP RECORDS OF THE INFORMATION DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF PARAGRAPH TWO OF THIS S. 7509--A 48 A. 9509--A SUBDIVISION, ALONG WITH PROOF THAT IT HAS PROVIDED PURCHASERS WITH ANY PER-PURCHASE NOTICES OR ANNUAL STATEMENTS OF PURCHASES REQUIRED. THE NON-COLLECTING SELLER SHALL KEEP SUCH RECORDS FOR SUCH PERIODS AND IN SUCH MANNER AS PRESCRIBED FOR RECORDS REQUIRED TO BE MAINTAINED UNDER SUBDIVISIONS (A) AND (G) OF SECTION ELEVEN HUNDRED THIRTY-FIVE OF THIS PART, OR AS THE COMMISSIONER MAY OTHERWISE REQUIRE BY REGULATION. THE NON-COLLECTING SELLER SHALL MAKE THOSE RECORDS AVAILABLE FOR INSPECTION AND EXAMINATION AT ANY TIME UPON DEMAND BY THE COMMISSIONER. (4) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER FOR ANY CALENDAR YEAR IN WHICH THE NON-COLLECTING SELLER'S RECEIPTS FROM ALL NEW YORK PURCHASERS ARE LESS THAN FIVE MILLION DOLLARS DURING THE PRIOR CALENDAR YEAR. (5) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE IF, THE NON-COLLECTING SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY: (A) A MARKETPLACE PROVIDER FROM WHOM SUCH NON-COLLECTING SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION AS DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART; OR (B) A NON-COLLECTING MARKETPLACE PROVIDER WHO FULFILLED THE REQUIREMENTS OF SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF THIS SUBDIVISION ON ITS BEHALF. (B) (1) A NON-COLLECTING MARKETPLACE PROVIDER SHALL PERFORM THE REQUIREMENTS IN PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION ON BEHALF OF A NON-COLLECTING SELLER FOR ALL SALES IT FACILITATES FOR SUCH NON-COLLECTING SELLER. (2) NON-COLLECTING MARKETPLACE PROVIDERS SHALL ALSO PROVIDE NOTICE TO ALL NON-COLLECTING SELLERS FOR WHOM THEY FACILITATE SALES OF TANGIBLE PERSONAL PROPERTY THAT IS DELIVERED TO A LOCATION IN THIS STATE, SUCH NOTICE SHALL INCLUDE THE FOLLOWING INFORMATION: (A) SUCH SELLERS MAY BE REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART AND COLLECT THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS CHAPTER, OR, WHERE SUCH SELLERS ARE NOT REQUIRED TO OBTAIN A CERTIFICATE AND COLLECT TAX, THAT SUCH SELLERS ARE REQUIRED TO COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH; (B) THE NON-COLLECTING MARKETPLACE PROVIDER WILL PROVIDE EACH SELLER'S NAME, ADDRESS AND AGGREGATE AMOUNT OF SALES DELIVERED TO A LOCATION IN THIS STATE TO THE COMMISSIONER UPON REQUEST; AND (C) THE NON-COLLECTING MARKETPLACE PROVIDER IS REPORTING THE INFORMA- TION AND SENDING THE NOTICES REQUIRED BY SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION ON BEHALF OF THE NON-COLLECTING SELLER FOR SUCH SALE IF IT WAS FACILITATED BY SUCH NON- COLLECTING MARKETPLACE PROVIDER. (C) THE COMMISSIONER MAY, IN THEIR DISCRETION, MODIFY, WITHOUT ADDING TO, THE INFORMATION OTHERWISE REQUIRED TO BE INCLUDED IN THE INFORMATION RETURN, ANNUAL STATEMENT OF PURCHASES, OR PER-PURCHASE NOTICE REQUIRED BY THIS SUBDIVISION IF OTHER STATES IMPOSE SIMILAR REQUIREMENTS, IN ORDER TO FACILITATE THE COMPLIANCE OF NON-COLLECTING SELLERS. § 8. Subdivision (i) of section 1145 of the tax law, as added by section 2 of subpart G of part V-1 of chapter 57 of the laws of 2009, is amended to read as follows: (i)(1) Every person required to file an information return by SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section eleven S. 7509--A 49 A. 9509--A hundred thirty-six of this part, OR AN ANNUAL STATEMENT OR NOTICE REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART who [(A)] fails to provide any of the information required [by paragraph one or two of subdivision (i) of section eleven hundred thirty-six of this part for a vendor, operator, or recipient] TO BE PROVIDED IN SUCH INFORMATION RETURN OR NOTICE, OR WHO FAILS TO PERFORM THE REQUIREMENTS OF PARAGRAPH TWO OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART, or who fails to include any such information that is true and correct [(whether or not such a report is filed) for a vendor, operator, or recipient, or (B) fails to provide the information required by para- graph four of subdivision (i) of section eleven hundred thirty-six of this part to a vendor, operator, or recipient specified in paragraph four of subdivision (i) of section eleven hundred thirty-six of this part], will, in addition to any other penalty provided in this article or otherwise imposed by law, be subject to a penalty of five hundred dollars for ten or fewer failures, and up to fifty dollars for each additional failure. (2) Every person failing to file an information return required by SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section elev- en hundred thirty-six OF THIS PART OR AN ANNUAL STATEMENT OR NOTICE BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A of this part within the time required [by subdivision (i) of section eleven hundred thirty-six of this part], will, in addition to any other penalty provided for in this article or otherwise imposed by law, be subject to a penalty in an amount not to exceed two thousand dollars for each such failure, provided that the minimum penalty under this paragraph is five hundred dollars. (3) In no event will the penalty imposed by paragraph one of this subdivision, or the aggregate of the penalties imposed under paragraphs one and two of this subdivision, exceed ten thousand dollars for any annual filing period [as described by paragraph three of subdivision (i) of section eleven hundred thirty-six of this part]. (4) If the commissioner determines that any of the failures that are subject to penalty under this subdivision was entirely due to reasonable cause and not due to willful neglect, the commissioner must remit the penalty imposed under this subdivision. These penalties will be deter- mined, assessed, collected, paid, disposed of and enforced in the same manner as taxes imposed by this article and all the provisions of this article relating thereto will be deemed also to refer to these penal- ties. § 9. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section, or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section, or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provision had not been included herein. § 10. This act shall take effect immediately and shall apply to sales made on or after September 1, 2018; provided, however, that the require- ments in subparagraphs (B) and (C) of paragraph 2 of subdivision (a) of section 1135-a as added by section two of this act shall apply to sales made on or after January 1, 2019. PART BB S. 7509--A 50 A. 9509--A Section 1. Subdivision 2 of section 470 of the tax law, as amended by section 15 of part D of chapter 134 of the laws of 2010, is amended to read as follows: 2. "Tobacco products." Any cigar, including [a] little [cigar] CIGARS, VAPOR PRODUCTS, or tobacco, other than cigarettes, intended for consump- tion by smoking, chewing, INHALING VAPORS or as snuff. § 2. Subdivision 12 of section 470 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 12. "Distributor." Any person who imports or causes to be imported into this state any tobacco product (in excess of fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT) for sale, or who manufactures any tobacco product in this state, and any person within or without the state who is authorized by the commissioner of taxation and finance to make returns and pay the tax on tobacco products sold, shipped or delivered by him to any person in the state. § 3. Section 470 of the tax law is amended by adding a new subdivision 20 to read as follows: 20. "VAPOR PRODUCT." ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO A FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR, ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL DEVICE, OR APPROVED FOR USE PURSUANT TO SECTION THREE THIRTY-THREE HUNDRED SIXTY-TWO OF THE PUBLIC HEALTH LAW. § 4. Paragraph (a) of subdivision 1 of section 471-b of the tax law, as amended by section 18 of part D of chapter 134 of the laws of 2010, is amended to read as follows: (a) Such tax on tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS shall be at the rate of seventy-five percent of the wholesale price, and is intended to be imposed only once upon the sale of any tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS. § 5. Subdivision 1 of section 471-b of the tax law is amended by adding a new paragraph (d) to read as follows: (D) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER FLUID MILLILITER, OR PART THEREOF, OF THE VAPOR PRODUCT. ALL INVOICES FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE AMOUNT OF VAPOR PRODUCT IN MILLILITERS. § 6. Subdivision (a) of section 471-c of the tax law, as amended by section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs (i) and (ii) as amended by section 20 and paragraph (iii) as added by section 21 of part D of chapter 134 of the laws of 2010, is amended to read as follows: (a) There is hereby imposed and shall be paid a tax on all tobacco products used in the state by any person, except that no such tax shall be imposed (1) if the tax provided in section four hundred seventy-one-b of this article is paid, or (2) on the use of tobacco products which are exempt from the tax imposed by said section, or (3) on the use of two hundred fifty cigars or less, [or] five pounds or less of tobacco other than roll-your-own tobacco, [or] thirty-six ounces or less of roll-your- own tobacco OR FIVE HUNDRED MILLILITERS OR LESS OF VAPOR PRODUCT brought into the state on, or in the possession of, any person. (i) Such tax on tobacco products other than snuff [and], little cigars AND VAPOR PRODUCTS shall be at the rate of seventy-five percent of the wholesale price. S. 7509--A 51 A. 9509--A (ii) Such tax on snuff shall be at the rate of two dollars per ounce and a proportionate rate on any fractional parts of an ounce, provided that cans or packages of snuff with a net weight of less than one ounce shall be taxed at the equivalent rate of cans or packages weighing one ounce. Such tax shall be computed based on the net weight as listed by the manufacturer. (iii) Such tax on little cigars shall be at the same rate imposed on cigarettes under this article and is intended to be imposed only once upon the sale of any little cigars. (IV) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER FLUID MILLILITER OF THE VAPOR PRODUCT. ALL INVOICES FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE AMOUNT OF VAPOR PRODUCT IN MILLILITERS. § 7. Subdivision 2 of section 474 of the tax law, as amended by chap- ter 552 of the laws of 2008, is amended to read as follows: 2. Every person who shall possess or transport more than two hundred fifty cigars, [or] more than five pounds of tobacco other than roll- your-own tobacco, [or] more than thirty-six ounces of roll-your-own tobacco OR MORE THAN FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways, roads or streets of the state, shall be required to have in his actual possession invoices or delivery tickets for such tobacco products. Such invoices or delivery tickets shall show the name and address of the consignor or seller, the name and address of the consignee or purchaser, the quantity and brands of the tobacco products transported, and the name and address of the person who has or shall assume the payment of the tax and the wholesale price or the tax paid or payable. The absence of such invoices or delivery tickets shall be prima facie evidence that such person is a dealer in tobacco products in this state and subject to the requirements of this article. § 8. Subdivision 3 of section 474 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: 3. Every dealer or distributor or employee thereof, or other person acting on behalf of a dealer or distributor, who shall possess or trans- port more than fifty cigars [or], more than one pound of tobacco OR MORE THAN ONE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways, roads or streets of the state, shall be required to have in his actual possession invoices or delivery tickets for such tobacco products. Such invoices or delivery tickets shall show the name and address of the consignor or seller, the name and address of the consignee or purchaser, the quantity and brands of the tobacco products transported, and the name and address of the person who has or shall assume the payment of the tax and the wholesale price or the tax paid or payable. The absence of such invoices or delivery tickets shall be prima facie evidence that the tax imposed by this article on tobacco products has not been paid and is due and owing. § 9. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481 of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2013, is amended to read as follows: (i) In addition to any other penalty imposed by this article, the commissioner may (A) impose a penalty of not more than six hundred dollars for each two hundred cigarettes, or fraction thereof, in excess of one thousand cigarettes in unstamped or unlawfully stamped packages in the possession or under the control of any person or (B) impose a penalty of not more than two hundred dollars for each ten unaffixed false, altered or counterfeit cigarette tax stamps, imprints or impressions, or fraction thereof, in the possession or under the control S. 7509--A 52 A. 9509--A of any person. In addition, the commissioner may impose a penalty of not more than seventy-five dollars for each fifty cigars [or] one pound of tobacco[,] OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any person and a penalty of not more than one hundred fifty dollars for each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; provided, however, that any such penalty imposed shall not exceed seven thousand five hundred dollars in the aggregate. The commissioner may impose a penalty of not more than seventy-five dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of fifty cigars [or], one pound of tobac- co OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any tobacco products dealer or distributor appointed by the commissioner, and a penalty of not more than one hundred fifty dollars for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the control of any such dealer or distributor, with respect to which the tobacco products tax has not been paid or assumed by a distributor or a tobacco products dealer; provided, however, that any such penalty imposed shall not exceed fifteen thousand dollars in the aggregate. § 10. Items (I) and (II) of clause (B) and items (I) and (II) of clause (C) of subparagraph (ii) of paragraph (b) of subdivision 1 of section 481 of the tax law, as added by chapter 262 of the laws of 2000, are amended to read as follows: (I) not less than twenty-five dollars but not more than one hundred dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLI- LITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; and (II) not less than fifty dollars but not more than two hundred dollars for each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILI- TERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products deal- er; provided, however, that any such penalty imposed under this clause shall not exceed ten thousand dollars in the aggregate. (I) not less than twenty-five dollars but not more than one hundred dollars for each fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of fifty cigars [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or tobacco products dealer; and (II) not less than fifty dollars but not more than two hundred dollars for S. 7509--A 53 A. 9509--A each fifty cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the control of any person, with respect to which the tobacco products tax has not been paid or assumed by a distributor or a tobacco products dealer; provided, however, that any such penalty imposed under this clause shall not exceed twenty thousand dollars in the aggregate. § 11. Paragraph (a) of subdivision 2 of section 481 of the tax law, as amended by chapter 552 of the laws of 2008, is amended to read as follows: (a) The possession within this state of more than four hundred ciga- rettes in unstamped or unlawfully stamped packages [or], more than two hundred fifty cigars, [or] more than five pounds of tobacco other than roll-your-own tobacco, [or] more than thirty-six ounces of roll-your-own tobacco by any person other than an agent or distributor, as the case may be, OR FIVE HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT at any one time shall be presumptive evidence that such cigarettes or tobacco products are subject to tax as provided by this article. § 12. Subdivisions (a) and (h) of section 1814 of the tax law, as amended by section 28 of subpart I of part V-1 of chapter 57 of the laws of 2009, are amended to read as follows: (a) Any person who willfully attempts in any manner to evade or defeat the taxes imposed by article twenty of this chapter or payment thereof on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars or more, [or] (iii) four hundred forty pounds of tobacco or more, (IV) FORTY-FOUR THOUSAND MILLILITERS OF VAPOR PRODUCT OR MORE or has previ- ously been convicted two or more times of a violation of paragraph one of this subdivision shall be guilty of a class E felony. (h) (1) Any dealer, other than a distributor appointed by the commis- sioner [of taxation and finance] under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control more than ten pounds of tobacco [or], more than five hundred cigars OR MORE THAN ONE THOUSAND MILLILITERS OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner [of taxation and finance] under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seven- ty-one-d of this chapter, shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprison- ment not to exceed thirty days. (2) Any person, other than a dealer or a distributor appointed by the commissioner under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control more than fifteen pounds of tobacco [or], more than seven hundred fifty cigars OR MORE THAN FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seventy-one-d of this chap- ter shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprisonment not to exceed thirty days. (3) Any person, other than a distributor appointed by the commissioner under article twenty of this chapter, who shall knowingly transport or have in his custody, possession or under his control twenty-five hundred S. 7509--A 54 A. 9509--A or more cigars [or],fifty or more pounds of tobacco OR FIVE THOUSAND MILLILITERS OR MORE OF VAPOR PRODUCT upon which the taxes imposed by article twenty of this chapter have not been assumed or paid by a distributor appointed by the commissioner under article twenty of this chapter, or other person treated as a distributor pursuant to section four hundred seventy-one-d of this chapter shall be guilty of a misde- meanor. Provided further, that any person who has twice been convicted under this subdivision shall be guilty of a class E felony for any subsequent violation of this section, regardless of the amount of tobac- co products involved in such violation. (4) For purposes of this subdivision, such person shall knowingly transport or have in his custody, possession or under his control tobac- co [or], cigars OR VAPOR PRODUCTS on which such taxes have not been assumed paid by a distributor appointed by the commissioner where such person has knowledge of the requirement of the tax on tobacco products and, where to his knowledge, such taxes have not been assumed or paid on such tobacco products by a distributor appointed by the commissioner of taxation and finance. § 13. Subdivisions (a) and (b) of section 1814-a of the tax law, as added by chapter 61 of the laws of 1989, are amended to read as follows: (a) Any person who, while not appointed as a distributor of tobacco products pursuant to the provisions of article twenty of this chapter, imports or causes to be imported into the state more than fifty cigars [or], more than one pound of tobacco[,] OR MORE THAN ONE HUNDRED MILLI- LITERS OF VAPOR PRODUCT for sale within the state, or produces, manufac- tures or compounds tobacco products within the state shall be guilty of a misdemeanor punishable by a fine of not more than five thousand dollars or by a term of imprisonment not to exceed thirty days. If, within any ninety day period, one thousand or more cigars [or five hundred], TWENTY pounds or more of tobacco OR TWO THOUSAND MILLILITERS OR MORE OF VAPOR PRODUCT are imported or caused to be imported into the state for sale within the state or are produced, manufactured or compounded within the state by any person while not appointed as a distributor of tobacco products, such person shall be guilty of a misde- meanor. Provided further, that any person who has twice been convicted under this section shall be guilty of a class E felony for any subse- quent violation of this section, regardless of the amount of tobacco products involved in such violation. (b) For purposes of this section, the possession or transportation within this state by any person, other than a tobacco products distribu- tor appointed by the commissioner of taxation and finance, at any one time of seven hundred fifty or more cigars [or], fifteen pounds or more of tobacco OR FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT shall be presumptive evidence that such tobacco products are possessed or transported for the purpose of sale and are subject to the tax imposed by section four hundred seventy-one-b of this chapter. With respect to such possession or transportation, any provisions of article twenty of this chapter providing for a time period during which the tax imposed by such article may be paid shall not apply. § 14. Subdivision (a) of section 1846-a of the tax law, as amended by chapter 556 of the laws of 2011, is amended to read as follows: (a) Whenever a police officer designated in section 1.20 of the crimi- nal procedure law or a peace officer designated in subdivision four of section 2.10 of such law, acting pursuant to his special duties, shall discover any tobacco products in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT which are S. 7509--A 55 A. 9509--A being imported for sale in the state where the person importing or caus- ing such tobacco products to be imported has not been appointed as a distributor pursuant to section four hundred seventy-two of this chap- ter, such police officer or peace officer is hereby authorized and empowered forthwith to seize and take possession of such tobacco products. Such tobacco products seized by a police officer or peace officer shall be turned over to the commissioner. Such seized tobacco products shall be forfeited to the state. All tobacco products forfeited to the state shall be destroyed or used for law enforcement purposes, except that tobacco products that violate, or are suspected of violat- ing, federal trademark laws or import laws shall not be used for law enforcement purposes. If the commissioner determines the tobacco products may not be used for law enforcement purposes, the commissioner must, within a reasonable time thereafter, upon publication in the state registry of a notice to such effect before the day of destruction, destroy such forfeited tobacco products. The commissioner may, prior to any destruction of tobacco products, permit the true holder of the trademark rights in the tobacco products to inspect such forfeited products in order to assist in any investigation regarding such tobacco products. § 15. Subdivision (b) of section 1847 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (b) Any peace officer designated in subdivision four of section 2.10 of the criminal procedure law, acting pursuant to his special duties, or any police officer designated in section 1.20 of the criminal procedure law may seize any vehicle or other means of transportation used to import tobacco products in excess of five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT for sale where the person importing or causing such tobacco products to be imported has not been appointed a distributor pursuant to section four hundred seventy-two of this chapter, other than a vehicle or other means of transportation used by any person as a common carrier in transaction of business as such common carrier, and such vehicle or other means of transportation shall be subject to forfeiture as hereinafter in this section provided. § 16. This act shall take effect on the one hundred eightieth day after it shall have become a law, and shall apply to vapor products that first become subject to taxation under article 20 of the tax law on or after such date. PART CC Section 1. The tax law is amended by adding a new article 20-C to read as follows: ARTICLE 20-C OPIOID EPIDEMIC SURCHARGE SECTION 492. DEFINITIONS. 493. IMPOSITION OF SURCHARGE. 494. RETURNS TO BE SECRET. § 492. DEFINITIONS. WHEN USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "OPIOID" SHALL MEAN AN "OPIATE" AS DEFINED BY SUBDIVISION TWENTY- THREE OF SECTION THIRTY-THREE HUNDRED TWO OF THE PUBLIC HEALTH LAW, AND ANY NATURAL, SYNTHETIC, OR SEMISYNTHETIC "NARCOTIC DRUG" AS DEFINED BY SUBDIVISION TWENTY-TWO OF SUCH SECTION, THAT HAS AGONIST, PARTIAL AGON- IST, OR AGONIST/ANTAGONIST MORPHINE-LIKE ACTIVITIES OR EFFECTS SIMILAR S. 7509--A 56 A. 9509--A TO NATURAL OPIUM ALKALOIDS AND ANY DERIVATIVE, CONGENER, OR COMBINATION THEREOF, LISTED IN SCHEDULES II-IV OF SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW. 2. "UNIT" SHALL MEAN THE DOSAGE FORM OF AN OPIOID-CONTAINING DRUG INCLUDING, BUT NOT LIMITED TO, TABLETS, CAPSULES, SUPPOSITORIES, TOPICAL (TRANSDERMAL), BUCCAL OR ANY OTHER DOSAGE FORM, SUCH AS WEIGHT OR VOLUME. 3. "UNIT STRENGTH" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT, AS MEAS- URED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC. 4. "MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR" SHALL MEAN THAT REFERENCE STANDARD OF A PARTICULAR OPIOID AS IT RELATES IN POTENCY TO MORPHINE AS DETERMINED BY THE COMMISSIONER OF HEALTH. 5. "MORPHINE MILLIGRAM EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY ITS UNIT STRENGTH MULTIPLIED BY THE MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR OF THE OPIOID CONTAINED IN SUCH UNIT. 6. "ESTABLISHMENT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSOCI- ATION REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSUANT TO SECTION SIXTY-EIGHT HUNDRED EIGHT OR SECTION SIXTY-EIGHT HUNDRED EIGHT-B OF THE EDUCATION LAW, AS WELL AS ANY PERSON, FIRM, CORPORATION OR ASSOCIATION THAT WOULD BE REQUIRED TO BE REGISTERED WITH THE EDUCA- TION DEPARTMENT PURSUANT TO SUCH SECTION SIXTY-EIGHT HUNDRED EIGHT-B BUT FOR THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION. 7. "INVOICE" SHALL MEAN THE INVOICE, SALES SLIP, MEMORANDUM OF SALE, OR OTHER DOCUMENT EVIDENCING A SALE OF AN OPIOID. § 493. IMPOSITION OF SURCHARGE. 1. THERE IS HEREBY IMPOSED A SURCHARGE ON THE SALE OF ANY OPIOID OF TWO CENTS PER MORPHINE MILLIGRAM EQUIVALENT SOLD. SUCH SURCHARGE SHALL BE IMPOSED ON THE FIRST SALE OF SUCH OPIOID IN THE STATE, EXCEPT THAT SUCH SURCHARGE SHALL NOT APPLY WHEN SUCH SALE IS TO ANY PROGRAM OPERATED PURSUANT TO ARTICLE THIRTY-TWO OF THE MENTAL HYGIENE LAW. THIS SURCHARGE SHALL BE CHARGED AGAINST, AND BE PAID BY, THE ESTABLISHMENT MAKING THE FIRST SALE OF SUCH OPIOID IN THE STATE, AND SHALL NOT BE ADDED AS A SEPARATE CHARGE OR LINE ITEM ON ANY INVOICE GIVEN TO THE CUSTOMER OR OTHERWISE PASSED DOWN TO THE CUSTOMER. HOWEVER, AN ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL CLEARLY NOTE ON THE INVOICE FOR THE FIRST SALE OF AN OPIOID IN THE STATE ITS LIABILITY FOR THE SURCHARGE, ALONG WITH ITS NAME, ADDRESS, AND TAXPAYER IDENTIFICATION NUMBER. ALL SALES OF AN OPIOID IN THIS STATE SHALL BE PRESUMED TO BE THE FIRST SALE OF SUCH, AND SHALL ALSO BE PRESUMED TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, UNLESS THE CONTRARY IS ESTABLISHED BY THE SELLER. 2. EVERY ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTI- CLE SHALL FILE WITH THE COMMISSIONER A RETURN, ON FORMS PRESCRIBED BY THE COMMISSIONER, INDICATING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF OPIOIDS IT SOLD IN THE STATE, THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF SUCH OPIOIDS THAT ARE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, THE AMOUNT OF SURCHARGE DUE THEREON, AND SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE DUE ON OR BEFORE THE TWENTIETH DAY OF EACH MONTH, AND SHALL COVER ALL OPIOID SALES IN THE STATE MADE IN THE MONTH PRIOR, EXCEPT THAT THE FIRST RETURN REQUIRED TO BE FILED PURSUANT TO THIS SECTION SHALL BE DUE ON OR BEFORE JANUARY TWENTIETH, TWO THOUSAND NINETEEN AND SHALL COVER ALL OPIOID SALES OCCUR- RING IN THE PERIOD BETWEEN THE EFFECTIVE DATE OF THIS ARTICLE AND DECEM- BER THIRTY-FIRST, TWO THOUSAND EIGHTEEN. EVERY ESTABLISHMENT REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF SURCHARGE DUE FOR THE PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED WHEN DUE, S. 7509--A 57 A. 9509--A THE SURCHARGE SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED. THE COMMISSIONER MAY REQUIRE THAT THE RETURNS AND PAYMENTS REQUIRED BY THIS ARTICLE BE FILED OR PAID ELECTRONICALLY. 3. ESTABLISHMENTS MAKING SALES OF OPIOIDS IN THIS STATE SHALL MAINTAIN ALL INVOICES PERTAINING TO SUCH SALES FOR SIX YEARS AFTER THE RETURN REPORTING SUCH SALES IS FILED WITH THE COMMISSIONER, UNLESS THE COMMIS- SIONER PROVIDES FOR A DIFFERENT RETENTION PERIOD BY RULE OR REGULATION. THE ESTABLISHMENT SHALL PRODUCE SUCH RECORDS UPON DEMAND BY THE COMMIS- SIONER. 4. WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS RECEIVED UNDER THE PROVISIONS OF THIS ARTICLE WERE PAID IN ERROR, HE OR SHE MAY CAUSE THE SAME TO BE REFUNDED, WITH INTEREST, EXCEPT THAT NO INTEREST SHALL BE ALLOWED OR PAID IF THE AMOUNT THEREOF WOULD BE LESS THAN ONE DOLLAR. SUCH INTEREST SHALL BE AT THE OVERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBDIVISION TWENTY-SIXTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS CHAPTER, OR IF NO RATE IS SET, AT THE RATE OF SIX PERCENT PER ANNUM, FROM THE DATE WHEN THE SURCHARGE, PENALTY OR INTEREST TO BE REFUNDED WAS PAID TO A DATE PRECEDING THE DATE OF THE REFUND CHECK BY NOT MORE THAN THIRTY DAYS. PROVIDED, HOWEVER, THAT FOR THE PURPOSES OF THIS SUBDIVISION, ANY SURCHARGE PAID BEFORE THE LAST DAY PRESCRIBED FOR ITS PAYMENT SHALL BE DEEMED TO HAVE BEEN PAID ON SUCH LAST DAY. SUCH MONEYS RECEIVED UNDER THE PROVISIONS OF THIS ARTICLE THAT THE COMMIS- SIONER SHALL DETERMINE WERE PAID IN ERROR, MAY BE REFUNDED OUT OF FUNDS IN THE CUSTODY OF THE COMPTROLLER TO THE CREDIT OF SUCH SURCHARGES PROVIDED AN APPLICATION THEREFOR IS FILED WITH THE COMMISSIONER WITHIN TWO YEARS FROM THE TIME THE ERRONEOUS PAYMENT WAS MADE. 5. THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR- PORATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE SURCHARGE IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH ARTICLE IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. 6. (A) THE SURCHARGES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE STATE COMPTROLLER, TO THE CREDIT OF THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-AAAAA OF THE STATE FINANCE LAW. AN ACCOUNT MAY BE ESTABLISHED IN ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS WILL BE KEPT SEPARATE AND APART FROM ALL OTHER MONEY IN THE POSSESSION OF THE STATE COMPTROLLER. THE STATE COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE STATE COMPTROLLER SHALL RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS ARTICLE. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNTS IT RECEIVES UNDER THIS ARTICLE, BEFORE DEPOSIT INTO THE TRUST ACCOUNTS DESIGNATED BY THE STATE COMPTROLLER, A REASONABLE AMOUNT NECES- SARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIM- BURSE THE DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT AND DISTRIBUTE THE SURCHARGE IMPOSED BY THIS ARTICLE. (B) ON OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF EACH SUCCEEDING MONTH, AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND DEDUCTING SUCH AMOUNTS FOR SUCH COSTS, AS PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDI- VISION, THE COMMISSIONER SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNT OF ALL REVENUES SO RECEIVED DURING THE PRIOR MONTH BECAUSE OF THE S. 7509--A 58 A. 9509--A SURCHARGES, INTEREST AND PENALTIES SO IMPOSED. THE AMOUNT OF REVENUES SO CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT INTO THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY- SEVEN-AAAAA OF THE STATE FINANCE LAW. 7. THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH THE COMMISSIONER IN ADMINISTERING THIS SURCHARGE, INCLUDING SHARING WITH THE COMMISSIONER PERTINENT INFORMATION ABOUT ESTABLISHMENTS UPON THE REQUEST OF THE COMMISSIONER. § 494. RETURNS TO BE SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER JUDI- CIAL ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART- MENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS PERMIT- TED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT OR A PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFORMATION CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON ENGAGED OR RETAINED BY SUCH DEPARTMENT ON AN INDEPENDENT CONTRACT BASIS OR ANY PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF THE CONTENTS OF A RETURN OR REPORT FILED PURSUANT TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN IN ANY MANNER THE CONTENTS OR ANY OTHER INFORMATION RELATING TO THE BUSINESS OF AN ESTABLISHMENT CONTAINED IN ANY RETURN OR REPORT REQUIRED UNDER THIS ARTICLE. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS OR REPORTS SHALL NOT BE REQUIRED TO PRODUCE ANY OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF OF THE STATE, THE STATE DEPARTMENT OF HEALTH, THE STATE DEPARTMENT OF EDUCATION OR THE COMMISSIONER IN AN ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS CHAPTER OR ON BEHALF OF THE STATE OR THE COMMISSIONER IN ANY OTHER ACTION OR PROCEEDING INVOLVING THE COLLECTION OF A TAX DUE UNDER THIS CHAPTER TO WHICH THE STATE OR THE COMMISSIONER IS A PARTY OR A CLAIMANT OR ON BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEEDING, IN ANY OF WHICH EVENTS THE COURT MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THEREBY AS ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT THE COMMISSIONER, IN HIS OR HER DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR FROM PROVIDING ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT, BY OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF THE STATE DEPARTMENT OF HEALTH OR THE STATE DEPARTMENT OF EDUCATION; NOR TO PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR THE PROVISION OF ANY INFORMATION CONTAINED THEREIN, BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRE- SENTATIVES OF THE STATE WHEN AN ACTION SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAPTER IN WHICH SUCH RETURNS OR REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED; NOR TO PROHIBIT THE COMMISSIONER FROM PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER THIS ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THER- EFROM; NOR TO PROHIBIT THE INSPECTION OF THE RETURNS OR REPORTS REQUIRED UNDER THIS ARTICLE BY THE COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF ANY SURCHARGE PAID BY AN ESTABLISHMENT OR OTHER PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO AN ESTABLISH- MENT, OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH ESTABLISHMENT, A S. 7509--A 59 A. 9509--A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH ESTABLISHMENT PURSUANT TO THIS ARTICLE, NOR TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THEREOF. 2. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION SHALL BE DISMISSED FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A PERIOD OF FIVE YEARS THEREAFTER. (B) A VIOLATION OF THIS ARTICLE SHALL BE CONSIDERED A VIOLATION OF SECRECY PROVISIONS UNDER ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 2. Section 1825 of the tax law, as amended by section 20 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows: § 1825. Violation of secrecy provisions of the tax law.--Any person who violates the provisions of [subdivision (b) of section twenty-one,] subdivision one of section two hundred two, subdivision eight of section two hundred eleven, subdivision (a) of section three hundred fourteen, subdivision one or two of section four hundred thirty-seven, section four hundred eighty-seven, SECTION FOUR HUNDRED NINETY-FOUR, subdivision one or two of section five hundred fourteen, subsection (e) of section six hundred ninety-seven, subsection (a) of section nine hundred nine- ty-four, subdivision (a) of section eleven hundred forty-six, section twelve hundred eighty-seven, section twelve hundred ninety-six, subdivi- sion (a) of section fourteen hundred eighteen, subdivision (a) of section fifteen hundred eighteen, subdivision (a) of section fifteen hundred fifty-five of this chapter, and subdivision (e) of section 11-1797 of the administrative code of the city of New York shall be guilty of a misdemeanor. § 3. The state finance law is amended by adding a new section 97-aaaaa to read as follows: § 97-AAAAA. OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMP- TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT OF THE MISCELLANEOUS SPECIAL REVENUE ACCOUNT TO BE KNOWN AS THE "OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT". 2. MONEYS IN THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE. 3. THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL CONSIST OF MONEYS APPROPRIATED FOR THE PURPOSE OF SUCH ACCOUNT, MONEYS TRANS- FERRED TO SUCH ACCOUNT PURSUANT TO LAW, CONTRIBUTIONS CONSISTING OF PROMISES OR GRANTS OF ANY MONEY OR PROPERTY OF ANY KIND OR VALUE, OR ANY OTHER THING OF VALUE, INCLUDING GRANTS OR OTHER FINANCIAL ASSISTANCE FROM ANY AGENCY OF GOVERNMENT AND MONEYS REQUIRED BY THE PROVISIONS OF THIS SECTION OR ANY OTHER LAW TO BE PAID INTO OR CREDITED TO THIS ACCOUNT. THE ACCOUNT SHALL ALSO CONSIST OF MONEYS RECEIVED FROM ANY LITIGATION OR ENFORCEMENT ACTIONS INITIATED AGAINST OPIOID PHARMACEU- TICAL MANUFACTURERS, DISTRIBUTORS AND WHOLESALERS. 4. MONEYS OF THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT, WHEN ALLOCATED, SHALL BE AVAILABLE, SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET, TO SUPPORT PROGRAMS OPERATED BY THE NEW YORK STATE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES OR AGENCIES CERTIFIED, AUTHORIZED, APPROVED OR OTHERWISE FUNDED BY THE NEW YORK STATE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES TO PROVIDE OPIOID TREATMENT, RECOVERY AND PREVENTION AND EDUCATION SERVICES; AND TO S. 7509--A 60 A. 9509--A PROVIDE SUPPORT FOR THE PRESCRIPTION MONITORING PROGRAM REGISTRY IF ESTABLISHED. 5. AT THE REQUEST OF THE BUDGET DIRECTOR, THE STATE COMPTROLLER SHALL TRANSFER MONEYS TO SUPPORT THE COSTS OF OPIOID TREATMENT, RECOVERY, PREVENTION, EDUCATION SERVICES, AND OTHER RELATED PROGRAMS, FROM THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT TO ANY OTHER FUND OF THE STATE. 6. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL OR SPECIAL LAW, NO MONEYS SHALL BE AVAILABLE FROM THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT UNTIL A CERTIFICATE OF ALLOCATION AND A SCHEDULE OF AMOUNTS TO BE AVAILABLE THEREFOR SHALL HAVE BEEN ISSUED BY THE DIRECTOR OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY OF SUCH CERTIF- ICATE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. SUCH CERTIFICATE MAY BE AMENDED FROM TIME TO TIME BY THE DIRECTOR OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY OF SUCH AMENDMENT SHALL BE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. 7. THE MONEYS, WHEN ALLOCATED, SHALL BE PAID OUT OF THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT, PURSUANT TO SUBDIVISION FOUR OF THIS SECTION, AND SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET, ON THE AUDIT AND WARRANT OF THE COMPTROLLER ON VOUCHERS CERTI- FIED OR APPROVED BY (A) THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES OR HIS OR HER DESIGNEE; OR (B) THE COMMISSIONER OF THE DEPARTMENT OF HEALTH OR HIS OR HER DESIGNEE. § 4. This act shall take effect July 1, 2018. PART DD Section 1. The tax law is amended by adding a new section 1521 to read as follows: § 1521. HEALTHCARE INSURANCE WINDFALL PROFIT FEE. (A) IN ADDITION TO ALL TAXES, SURCHARGES, AND FEES IMPOSED UNDER THIS CHAPTER, THE INSUR- ANCE LAW, THE FINANCIAL SERVICES LAW, AND THE PUBLIC HEALTH LAW, THERE IS HEREBY IMPOSED FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER THIR- TY-FIRST, TWO THOUSAND SEVENTEEN, A FOURTEEN PERCENT SURCHARGE ON THE NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN THIS STATE AND THE NET UNDERWRITING GAIN FROM THE OPERATION OF A MEDICAID MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH OF EVERY CORPORATION (1) AUTHORIZED TO TRAN- SACT AN INSURANCE BUSINESS IN THIS STATE, OR (2) THAT IS A HEALTH MAIN- TENANCE ORGANIZATION REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW. (B) FOR PURPOSES OF THIS SECTION, THE TERM "HEALTH INSURANCE" SHALL MEAN COMPREHENSIVE HOSPITAL AND MEDICAL EXPENSE INSURANCE INCLUDING, WITHOUT LIMITATION, COMPREHENSIVE COVERAGE ISSUED BY A HEALTH MAINTE- NANCE ORGANIZATION, DISABILITY INCOME INSURANCE, ACCIDENT INSURANCE, MEDICARE SUPPLEMENT INSURANCE, SPECIFIED DISEASE INSURANCE, DENTAL INSURANCE, VISION INSURANCE, STOP-LOSS INSURANCE, FIXED INDEMNITY INSUR- ANCE, AND HOSPITAL INDEMNITY INSURANCE. (C)(1) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN THIS STATE" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK S. 7509--A 61 A. 9509--A LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO THE GROSS RECEIPTS. THE COMPUTATION OF "GROSS RECEIPTS FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO GROSS RECEIPTS" SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGULATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. (2) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE OPERA- TION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE OPERATION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO SUCH GROSS RECEIPTS. THE COMPUTATION OF "GROSS RECEIPTS FROM THE OPERATION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT OF HEALTH" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO GROSS RECEIPTS" SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGU- LATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. (D) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT BE DEDUCTIBLE BY A CORPORATION IN DETERMINING ITS LIABILITY FOR ANY OTHER TAX, SURCHARGE, OR FEE IMPOSED UNDER ANY LAW. (E) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT BE CONSIDERED BY ANY CORPORATION, AND SHALL NOT BE DEEMED TO BE AN EXPENSE, COST, OR LIABILITY, FOR PURPOSES OF ESTAB- LISHING OR SETTING THE RATE TO BE CHARGED FOR ANY HEALTH INSURANCE POLI- CY. (F) THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE CALCULATED BY EACH CORPORATION ON AN ANNUAL BASIS WITHOUT REGARD TO THE ITEMS OF GAIN OR LOSS FROM ANY OTHER PERIOD. (G) (1) THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL, ON BEHALF OF THE COMMISSIONER, HAVE THE POWER, DUTY AND RESPONSIBILITY TO EXAMINE RETURNS OF A CORPORATION FILED WITH HIM OR HER PURSUANT TO THIS SECTION AND, TOGETHER WITH ANY OTHER INFORMATION WITHIN HIS OR HER POSSESSION OR THAT MAY COME INTO HIS OR HER POSSESSION, TO ASCERTAIN THE CORRECT AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION OF ANY CORPORATION. FOR THE PURPOSE OF ASCERTAINING THE CORRECTNESS OF ANY SUCH SURCHARGE IMPOSED UNDER THIS SECTION OR FOR THE PURPOSE OF MAKING AN ESTIMATE OF THE SURCHARGE LIABILITY UNDER THIS SECTION OF ANY CORPORATION, THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE POWER TO EXAMINE OR CAUSE TO HAVE EXAMINED BY ANY AGENT OR REPRESENTATIVE DESIGNATED BY HIM OR HER FOR THAT PURPOSE, ANY BOOKS, PAPERS, RECORDS OR MEMORANDA BEARING UPON THE MATTERS REQUIRED TO BE INCLUDED IN THE RETURN. (2) IF THE SUPERINTENDENT OF FINANCIAL SERVICES ASCERTAINS THAT THE AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION AS SHOWN ON THE RETURN OF ANY CORPORATION IS LESS THAN THE AMOUNT OF SURCHARGE DISCLOSED BY HIS OR HER EXAMINATION, HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSION- ER THE ISSUANCE OF A NOTICE OF DEFICIENCY FOR THE AMOUNT DUE. IF A CORPORATION FAILS TO FILE A RETURN WITH THE SUPERINTENDENT OF FINANCIAL SERVICES WITHIN THE TIME REQUIRED FOR THE FILING OF SUCH RETURN (WITH REGARD TO ANY EXTENSION OF TIME FOR THE FILING THEREOF), THE SUPERINTEN- DENT OF FINANCIAL SERVICES SHALL MAKE AN ESTIMATE OF THE AMOUNT OF SURCHARGE DUE FOR THE PERIOD IN RESPECT TO WHICH SUCH CORPORATION FAILED TO FILE THE RETURN. THE ESTIMATE SHALL BE MADE FROM ANY AVAILABLE INFOR- MATION WHICH IS IN THE POSSESSION OR MAY COME INTO THE POSSESSION OF THE SUPERINTENDENT OF FINANCIAL SERVICES AND HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSIONER THE ISSUANCE OF A NOTICE OF DEFICIENCY FOR THE AMOUNT OF SUCH ESTIMATED SURCHARGE. ANY PROPOSAL PURSUANT TO THIS S. 7509--A 62 A. 9509--A PARAGRAPH SHALL SET FORTH THE BASIS THEREOF AND THE DETAILS OF ITS COMPUTATION. (3) THE COMMISSIONER SHALL, ON RECEIPT OF A PROPOSAL FROM THE SUPER- INTENDENT OF FINANCIAL SERVICES PURSUANT TO PARAGRAPH TWO OF THIS SUBDI- VISION, TAKE APPROPRIATE ACTION UNDER THIS CHAPTER FOR THE ASSESSMENT AND COLLECTION OF THE AMOUNT OF SURCHARGE, TOGETHER WITH INTEREST AND PENALTIES, SHOWN BY SUCH PROPOSAL TO BE DUE. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL BE REQUIRED TO ASSIST THE COMMISSIONER IN DEFENDING THE CORRECTNESS OF THE AMOUNT ASSESSED AT ANY CONFERENCE AT THE BUREAU OF CONCILIATION AND MEDIATION SERVICES AND AT THE DIVISION OF TAX APPEALS. (4) SUBJECT TO THE CONSENT OF THE SUPERINTENDENT OF FINANCIAL SERVICES AND NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY, THE COMMISSIONER MAY DELEGATE SUCH OTHER OF HIS OR HER POWERS AND DUTIES WITH RESPECT TO THE ADMINISTRATION AND COLLECTION OF THE SURCHARGE IMPOSED UNDER THIS SECTION TO THE SUPERINTENDENT OF FINANCIAL SERVICES, AS THE COMMISSIONER FINDS NECESSARY IN ORDER TO FACILITATE SUCH ADMINIS- TRATION AND COLLECTION. (5) THE SUPERINTENDENT OF FINANCIAL SERVICES AND THE COMMISSIONER SHALL EACH HAVE THE AUTHORITY TO ISSUE SUCH RULES AND REGULATIONS THAT ARE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. (6) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT IN ANY WAY BE DEEMED TO LIMIT THE POWER OF THE COMMISSIONER TO CONDUCT AN EXAMINATION OR INVESTIGATION AS HE OR SHE DEEMS NECESSARY IN ORDER TO CARRY OUT HIS OR HER DUTIES WITH RESPECT TO THE SURCHARGE IMPOSED UNDER THIS SECTION. (H) (1) EVERY CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF THIS SECTION, SHALL ANNUALLY, ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF ITS TAXABLE YEAR, TRANSMIT TO THE COMMISSIONER A RETURN IN A FORM PRESCRIBED BY THE COMMISSIONER SETTING FORTH SUCH INFORMATION AS THE COMMISSIONER MAY PRESCRIBE AND EVERY CORPORATION WHICH CEASES TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS SECTION SHALL TRANSMIT TO THE COMMISSIONER A RETURN ON THE DATE OF SUCH CESSATION OR AT SUCH OTHER TIME AS THE COMMISSIONER MAY REQUIRE COVERING EACH YEAR OR PERIOD FOR WHICH NO RETURN WAS THERETOFORE FILED. A COPY OF EACH RETURN REQUIRED UNDER THIS SUBDIVISION SHALL ALSO BE TRANSMITTED TO THE SUPERINTENDENT OF FINANCIAL SERVICES AT OR BEFORE THE TIMES SPECI- FIED FOR FILING SUCH RETURNS WITH THE COMMISSIONER. (2) EVERY CORPORATION SHALL ALSO TRANSMIT SUCH OTHER RETURNS AND SUCH FACTS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE IN THE ADMINIS- TRATION OF THIS SECTION. (3) THE COMMISSIONER MAY GRANT A REASONABLE EXTENSION OF TIME FOR FILING RETURNS WHENEVER GOOD CAUSE EXISTS. AN AUTOMATIC EXTENSION OF FOUR MONTHS FOR THE FILING OF ITS RETURN SHALL BE ALLOWED ANY CORPO- RATION, IF WITHIN THE TIME PRESCRIBED BY PARAGRAPH ONE OF THIS SUBDIVI- SION, SUCH CORPORATION FILES WITH THE COMMISSIONER AN APPLICATION FOR EXTENSION IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE AND PAYS ON OR BEFORE THE DATE OF SUCH FILING THE AMOUNT PROPERLY ESTIMATED AS ITS SURCHARGE. (4) EVERY RETURN SHALL HAVE ANNEXED THERETO A CERTIFICATION BY THE PRESIDENT, VICE PRESIDENT, TREASURER, ASSISTANT TREASURER, CHIEF ACCOUNTING OFFICER OR ANY OTHER OFFICER OF THE CORPORATION DULY AUTHOR- IZED SO TO ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED THEREIN ARE TRUE. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON A CERTIFICATION OF THE RETURN SHALL BE PRIMA FACIE EVIDENCE THAT SUCH INDIVIDUAL IS AUTHOR- IZED TO SIGN AND CERTIFY THE RETURN ON BEHALF OF THE CORPORATION. S. 7509--A 63 A. 9509--A (5) EACH CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF THIS SECTION SHALL FILE A SEPARATE RETURN FOR EACH YEAR SUCH CORPORATION IS SUBJECT TO THE SURCHARGE. (6) IN CASE IT SHALL APPEAR TO THE COMMISSIONER THAT ANY AGREEMENT, UNDERSTANDING OR ARRANGEMENT EXISTS BETWEEN THE CORPORATION AND ANY OTHER ENTITY, PERSON OR FIRM WHEREBY THE ACTIVITY, BUSINESS, INCOME OR CAPITAL OF THE CORPORATION IS IMPROPERLY OR INACCURATELY REFLECTED, THE COMMISSIONER IS AUTHORIZED AND EMPOWERED IN HIS OR HER DISCRETION AND IN SUCH MANNER AS HE OR SHE MAY DETERMINE, TO ADJUST ITEMS OF INCOME, DEDUCTIONS AND CAPITAL SO AS EQUITABLY TO DETERMINE THE SURCHARGE. WHERE (A) ANY CORPORATION CONDUCTS ITS ACTIVITY OR BUSINESS UNDER ANY AGREE- MENT, ARRANGEMENT OR UNDERSTANDING IN SUCH MANNER AS EITHER DIRECTLY OR INDIRECTLY TO BENEFIT ITS MEMBERS OR STOCKHOLDERS, OR ANY OF THEM, OR ANY PERSON OR PERSONS DIRECTLY OR INDIRECTLY INTERESTED IN SUCH ACTIVITY OR BUSINESS, BY ENTERING INTO ANY TRANSACTION AT MORE OR LESS THAN A FAIR PRICE WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, MIGHT HAVE BEEN PAID OR RECEIVED THEREFOR, OR (B) ANY CORPORATION, A SUBSTANTIAL PORTION OF WHOSE CAPITAL STOCK IS OWNED EITHER DIRECTLY OR INDIRECTLY BY ANOTHER CORPORATION, ENTERS INTO ANY TRANSACTION WITH SUCH OTHER CORPORATION ON SUCH TERMS AS TO CREATE AN IMPROPER GAIN OR LOSS AMOUNT, THE COMMISSIONER MAY INCLUDE IN THE CORPORATION'S GAIN SUBJECT TO THE SURCHARGE THE FAIR AMOUNTS, WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, THE CORPORATION MIGHT HAVE DERIVED FROM SUCH TRANSACTION. (I) (1) TO THE EXTENT THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT HAVE BEEN PREVIOUSLY PAID, THE SURCHARGE, OR THE BALANCE THEREOF, SHALL BE PAYABLE TO THE COMMISSIONER IN FULL AT THE TIME THE CORPORATION'S RETURN IS REQUIRED TO BE FILED. (2) IF THE CORPORATION, WITHIN THE TIME PRESCRIBED BY SUBDIVISION (F) OF THIS SECTION, SHALL HAVE APPLIED FOR AN AUTOMATIC EXTENSION OF TIME TO FILE ITS ANNUAL RETURN AND SHALL HAVE PAID TO THE SUPERINTENDENT OF FINANCIAL SERVICES ON OR BEFORE THE DATE SUCH APPLICATION IS FILED AN AMOUNT PROPERLY ESTIMATED AS PROVIDED BY SAID SUBDIVISION, THE ONLY AMOUNT PAYABLE IN ADDITION TO THE SURCHARGE SHALL BE INTEREST AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBSECTION (E) OF SECTION ONE THOUSAND NINETY-SIX OF THIS CHAPTER OR, IF NO RATE IS SET, AT THE RATE OF SIX PERCENT PER ANNUM UPON THE AMOUNT BY WHICH THE SURCHARGE, OR PORTION THEREOF PAYABLE ON OR BEFORE THE DATE THE RETURN WAS REQUIRED TO BE FILED, EXCEEDS THE AMOUNT SO PAID. FOR THE PURPOSES OF THE PRECEDING SENTENCE: (A) AN AMOUNT SO PAID SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS EITHER (I) NOT LESS THAN NINETY PERCENT OF THE SURCHARGE AS FINALLY DETERMINED, OR (II) NOT LESS THAN THE SURCHARGE SHOWN ON THE CORPO- RATION'S RETURN FOR THE PRECEDING TAXABLE YEAR, IF SUCH PRECEDING YEAR WAS A TAXABLE YEAR OF TWELVE MONTHS; AND (B) THE TIME WHEN A RETURN IS REQUIRED TO BE FILED SHALL BE DETERMINED WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH RETURN. (3) THE COMMISSIONER MAY GRANT A REASONABLE EXTENSION OF TIME FOR PAYMENT OF ANY SURCHARGE IMPOSED BY THIS SECTION UNDER SUCH CONDITIONS AS HE OR SHE DEEMS JUST AND PROPER. (J) ALL SURCHARGES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS SECTION SHALL BE DEPOSITED INTO THE HEALTH CARE REFORM ACT (HCRA) RESOURCES FUND PURSUANT TO SECTION NINETY-TWO-DD OF THE STATE FINANCE LAW. (K) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE PROVISIONS OF THIS SECTION IN THE SAME MANNER AND WITH THE SAME S. 7509--A 64 A. 9509--A FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE TWENTY-SEVEN HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD EXPRESSLY REFERRED TO THE SURCHARGE UNDER THIS SECTION, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THIS SECTION. § 2. This act shall take effect immediately. PART EE Section 1. Subdivision 1 of Section 208 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 140 of the laws of 2008, is amended to read as follows: 1. In consideration of the franchise and in accordance with its fran- chise agreement, the franchised corporation shall remit to the state, each year, no later than April fifth, a franchise fee payment. The fran- chise fee shall be calculated and equal to the lesser of paragraph (a) or (b) of this subdivision as follows: (a) adjusted net income, includ- ing all sources of audited generally accepted accounting principles net income as of December thirty-first (i) plus the amount of depreciation and amortization for such year as set forth on the statement of cash flows (ii) less the amount received by the franchised corporation for capital expenditures and (iii) less principal payments made for the repayment of debt; or (b) operating cash which is defined as cash avail- able on December thirty-first (i) which excludes all restricted cash accounts, segregated accounts as per audited financial statements and cash on hand needed to fund the on-track pari-mutuel operations through the vault, (ii) less [forty-five] NINETY days of operating expenses pursuant to generally accepted accounting principles which shall be an average calculated by dividing the current year's annual budget by the number of days in such year and multiplying that number by [forty-five] NINETY. § 2. Section 203 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: § 203. Right to hold race meetings and races. 1. Any corporation formed under the provisions of this article, if so claimed in its certificate of organization, and if it shall comply with all the provisions of this article, and any other corporation entitled to the benefits and privileges of this article as hereinafter provided, shall have the power and the right to hold one or more running race meetings in each year, and to hold, maintain and conduct running races at such meetings. At such running race meetings the corporation, or the owners of horses engaged in such races, or others who are not participants in the race, may contribute purses, prizes, premiums or stakes to be contested for, but no person or persons other than the owner or owners of a horse or horses contesting in a race shall have any pecuniary interest in a purse, prize, premium or stake contested for in such race, or be entitled to or receive any portion thereof after such race is finished, and the whole of such purse, prize, premium or stake shall be allotted in accordance with the terms and conditions of such race. Races conducted by a franchised corporation shall be permitted only between sunrise and sunset. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN- CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER SUNSET AT THE BELMONT PARK RACETRACK, ONLY ON THE MAIN TRACK IN ITS CURRENT CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK S. 7509--A 65 A. 9509--A POST MERIDIAN, AND ONLY IF SUCH RACES OCCUR ON THURSDAYS, FRIDAYS OR SATURDAYS. THE FRANCHISED CORPORATION SHALL COORDINATE WITH A HARNESS RACING ASSOCIATION OR CORPORATION AUTHORIZED TO OPERATE IN WESTCHESTER COUNTY TO ENSURE THAT THE STARTING TIMES OF ALL SUCH RACES ARE STAG- GERED. 3. A track first licensed after January first, nineteen hundred nine- ty, shall not conduct the simulcasting of thoroughbred races within district one, in accordance with article ten of this chapter on days that a franchised corporation is not conducting a race meeting. In no event shall thoroughbred races conducted by a track first licensed after January first, nineteen hundred ninety be conducted after eight o'clock post meridian. § 3. An advisory committee shall be established by the governor comprised of individuals with demonstrated interest in the performance of thoroughbred and standardbred race horses to review the present structure, operations and funding of equine drug testing and research conducted pursuant to article nine of the racing, pari-mutuel wagering and breeding law. Recommendations shall be delivered to the temporary president of the Senate, speaker of the Assembly and Governor by Decem- ber 1, 2018 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 4. This act shall take effect immediately; provided, however, that the amendments to section 203 of the racing, pari-mutuel wagering and breeding law made by section two of this act shall expire and be deemed repealed 4 years after the first night of racing conducted after sunset pursuant to this act; provided that the New York Racing Association shall notify the legislative bill drafting commission of the date of such night of racing in order that the commission may maintain an accu- rate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public offi- cers law. PART FF Section 1. Subdivision 2 of section 254 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph h to read as follows: H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph j to read as follows: J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 3. This act shall take effect immediately. PART GG Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: S. 7509--A 66 A. 9509--A (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [eighteen] NINETEEN; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [eighteen] NINETEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by S. 7509--A 67 A. 9509--A section 2 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [eighteen] NINETEEN, the amount used exclusively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twen- ty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [eighteen] NINETEEN and on any day regardless of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [eighteen] NINETEEN. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that have entered into a written agreement with such facility's representative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [eighteen] NINETEEN. This section shall super- sede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [eighteen] NINETEEN. Every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organ- S. 7509--A 68 A. 9509--A ization as approved by the commission, one thousand eight or one thou- sand nine of this article shall be authorized to accept wagers and display the live full-card simulcast signal of thoroughbred tracks (which may include quarter horse or mixed meetings provided that all such wagering on such races shall be construed to be thoroughbred races) located in another state or foreign country, subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article: § 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [seventeen] EIGHTEEN, when a franchised corporation is conducting a race meeting within the state at Saratoga Race Course, every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. § 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: § 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2018] 2019; provided, however, that nothing contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. § 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section 8 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: § 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2018] 2019; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. S. 7509--A 69 A. 9509--A § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets be presented for payment before April first of the year following the year of their purchase, less an amount which shall be established and retained by such fran- chised corporation of between twelve to seventeen per centum of the total deposits in pools resulting from on-track regular bets, and four- teen to twenty-one per centum of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five per centum of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six per centum of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the gaming commission. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five per centum of regular bets and four per centum of multiple bets plus twenty per centum of the breaks; for exotic wagers seven and one-half per centum plus twenty per centum of the breaks, and for super exotic bets seven and one-half per centum plus fifty per centum of the breaks. For the period June first, nineteen hundred ninety-five through September ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be three per centum and such tax on multiple wagers shall be two and one- half per centum, plus twenty per centum of the breaks. For the period September tenth, nineteen hundred ninety-nine through March thirty- first, two thousand one, such tax on all wagers shall be two and six- tenths per centum and for the period April first, two thousand one through December thirty-first, two thousand [eighteen] NINETEEN, such tax on all wagers shall be one and six-tenths per centum, plus, in each such period, twenty per centum of the breaks. Payment to the New York state thoroughbred breeding and development fund by such franchised corporation shall be one-half of one per centum of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three per centum of super exotic bets provided, however, that for the period September tenth, nineteen hundred ninety-nine through March thir- ty-first, two thousand one, such payment shall be six-tenths of one per centum of regular, multiple and exotic pools and for the period April S. 7509--A 70 A. 9509--A first, two thousand one through December thirty-first, two thousand [eighteen] NINETEEN, such payment shall be seven-tenths of one per centum of such pools. § 10. This act shall take effect immediately. PART HH Section 1. Subdivision 4 of section 97-nnnn of the state finance law is REPEALED. § 2. Subdivisions 5 and 6 of section 97-nnnn of the state finance law are renumbered subdivisions 4 and 5. § 3. This act shall take effect April 1, 2018. PART II Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision b of section 1612 of the tax law are REPEALED and a new subparagraph (ii) is added to read as follows: (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA- TOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE: (A) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE ONE AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW OR THAT IS LOCATED MORE THAN FIFTEEN MILES BUT WITHIN FIFTY MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-ONE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; AND THAT AT A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-SIX PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (C) WHEN A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK, AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, UPON THE EARLIER OF THE DESIGNATION OF ONE THOUSAND VIDEO LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH FOUR OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (D) WHEN A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED PURSU- ANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-FIVE PERCENT OF THE TOTAL REVENUE S. 7509--A 71 A. 9509--A WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (E) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN REGION ONE OR TWO OF DEVELOPMENT ZONE TWO, AS SUCH ZONE IS DEFINED IN SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, OR IS LOCATED WITHIN REGION SIX OF SUCH DEVELOPMENT ZONE TWO AND IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL COMMISSION. THE ADDITIONAL COMMISSION RECEIVED BY THE VENDOR TRACK SHALL BE THE ADJUSTED COMMISSION CALCULATED PURSUANT TO SUBCLAUSE (II) OF THIS CLAUSE; PROVIDED, HOWEVER, THE ADDITIONAL COMMISSION SHALL NOT EXCEED AN AMOUNT CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE. (I) THE MAXIMUM ADDITIONAL COMMISSION PAYABLE FOR ANY FISCAL YEAR SHALL BE AN AMOUNT EQUAL TO THE BASE VENDOR FEE LESS THE ADJUSTED CURRENT VENDOR FEE. THE ADJUSTED CURRENT VENDOR FEE IS CALCULATED AS THE VENDOR FEE THAT THE FACILITY WOULD HAVE RECEIVED DURING THE CURRENT FISCAL YEAR UNDER THE PAYMENT SCHEDULE ESTABLISHED BY THIS PARAGRAPH AS IT EXISTED ON MARCH THIRTY-FIRST, TWO THOUSAND SEVENTEEN. THE BASE VENDOR FEE IS CALCULATED AS THE VENDOR FEE THAT THE FACILITY RECEIVED DURING THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE OPENING OF A GAMING FACILITY IN THE SAME REGION AS THE VENDOR TRACK. FOR THE PURPOSES OF THIS CALCULATION, A VENDOR FEE SHALL EXCLUDE ANY DISTRIBUTIONS REQUIRED BY PARAGRAPH TWO OF THIS SUBDIVISION. FOR THE PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUNTIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (II) THE ADJUSTED COMMISSION IS A PERCENTAGE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE TAX RATE ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN THE SAME REGION AS THE VENDOR TRACK FROM THE EDUCATION PERCENTAGE. THE EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUN- TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (III) THE ADDITIONAL COMMISSION PAID PURSUANT TO THIS SUBPARAGRAPH SHALL COMMENCE WITH THE STATE FISCAL YEAR ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND EIGHTEEN AND SHALL BE PAID TO A VENDOR TRACK NO LATER THAN SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT A VENDOR TRACK WHILE A GAMING FACILITY IN THE SAME REGION AS THAT VENDOR TRACK IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MU- TUEL WAGERING AND BREEDING LAW. (F) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERA- TORS OF A VENDOR TRACK OR THE OPERATORS OF ANY OTHER VIDEO LOTTERY GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR- TY-FIRST, TWO THOUSAND SEVENTEEN SHALL DEPOSIT FROM THEIR VENDOR FEE INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF THE FIRST SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE USED EXCLUSIVELY FOR CAPITAL INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO ONE PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER UNTIL THE EARLIER OF THE DESIGNATION OF ONE THOUSAND VIDEO LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH FOUR OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS S. 7509--A 72 A. 9509--A ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR PROJECTS APPROVED BY THE COMMISSION TO IMPROVE THE FACILITIES OF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR MAINTAIN THE VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS, OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES, RETAIL FACILITIES, DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS AND AMENITIES CUSTOMARY TO A GAMING FACILITY, PROVIDED, HOWEVER, THE VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR UNREIMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM THE DIVESTITURE OF ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED THAT IF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET TO A RELATED PARTY, SUCH VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY SHALL DEPOSIT AN AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES GAMING OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE VALUE OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI- TAL AWARDS SHALL BE RETURNED TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO AN AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI- TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI- TAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP TO TWO MILLION DOLLARS FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE AT THE VENDOR TRACK. (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE SHALL NOT BE INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES PAYA- BLE TO THE DIVISION'S VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR RACING SUPPORT PAYMENTS. (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR OF A VENDOR TRACK OR THE OPERATOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY SHALL FUND A MARKETING AND PROMOTION PROGRAM OUT OF THE VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL MARKETING PLAN FOR THE REVIEW AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU- MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE COMMISSION. THE COMMISSION SHALL HAVE THE RIGHT TO REJECT ANY ADVERTISEMENT OR PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR INTERESTS OF THE LOTTERY OR ITS PROGRAMS. (I) NOTWITHSTANDING CLAUSE (F) OF THIS SUBPARAGRAPH, THE COMMISSION SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND S. 7509--A 73 A. 9509--A WHO HAS MAINTAINED AT LEAST NINETY PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED IN CLAUSE (F) OF THIS SUBPARAGRAPH UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER EACH YEAR, FOR OPERATIONS. § 2. This act shall take effect immediately; provided, however, clause (I) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall expire and be deemed repealed June 29, 2019. PART JJ Section 1. Subsection (a) of section 614 of the tax law, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the New York standard deduction of a resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual [whose federal exemption amount is zero] WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred nine- ty-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty- nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. § 2. Section 612 of the tax law is amended by adding two new subsections (w) and (x) to read as follows: (W) ALIMONY MODIFICATIONS. (1) IN THE CASE OF APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA- BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) (A) THE TERM "ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. (B) THE TERM "APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS MADE UNDER AN ALIMONY OR SEPARATION INSTRUMENT (AS DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97) THAT WAS EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANY DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR BEFORE SUCH DATE AND MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION. (X) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. S. 7509--A 74 A. 9509--A (2) APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTIONS ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 3. Subsection (a) of section 615 of the tax law, as amended by section 1 of part HH of chapter 57 of the laws of 2010, is amended to read as follows: (a) General. If federal taxable income of a resident individual is determined by itemizing deductions OR CLAIMING THE FEDERAL STANDARD DEDUCTION from his OR HER federal adjusted gross income, he OR SHE may elect to deduct his OR HER New York itemized deduction [in lieu of] OR CLAIM his OR HER New York standard deduction. The New York itemized deduction of a resident individual means the total amount of his OR HER deductions from federal adjusted gross income ALLOWED, other than feder- al deductions for personal exemptions, as provided in the laws of the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME- DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica- tions specified in this section, except as provided for under subsections (f) and (g) of this section. § 4. Subdivision (a) of section 11-1714 of the administrative code of the city of New York, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the city standard deduction of a city resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual [whose federal exemption amount is zero] WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred nine- ty-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty- nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. § 5. Section 11-1712 of the administrative code of the city of New York is amended by adding two new subdivisions (u) and (v) to read as follows: (U) ALIMONY MODIFICATIONS. (1) IN THE CASE OF APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA- BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) (A) THE TERM "ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. (B) THE TERM "APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS MADE UNDER AN ALIMONY OR SEPARATION INSTRUMENT (AS DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97) THAT WAS EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANY DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR BEFORE SUCH DATE AND S. 7509--A 75 A. 9509--A MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION. (V) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTION ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 6. Subdivision (a) of section 11-1715 of the administrative code of the city of New York, as amended by section 5 of part HH of chapter 57 of the laws of 2010, is amended to read as follows: (a) General. If federal taxable income of a city resident individual is determined by itemizing deductions OR CLAIMING THE FEDERAL STANDARD DEDUCTION from his OR HER federal adjusted gross income, such resident individual may elect to deduct his OR HER city itemized deduction [in lieu of] OR CLAIM his OR HER city standard deduction. The city itemized deduction of a city resident individual means the total amount of his OR HER deductions from federal adjusted gross income ALLOWED, other than federal deductions for personal exemptions, as provided in the laws of the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME- DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica- tions specified in this section, except as provided for under subdivi- sions (f) and (g) of this section. § 7. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART KK Section 1. Paragraph (b) of subdivision 6-a of section 208 of the tax law, as amended by section 5-a of part T of chapter 59 of the laws of 2015, is amended to read as follows: (b) "Exempt CFC income" means (I) the income required to be included in the taxpayer's federal gross income pursuant to subsection (a) of section 951 of the internal revenue code, received from a corporation that is conducting a unitary business with the taxpayer but is not included in a combined report with the taxpayer, AND (II) TO THE EXTENT NOT INCLUDED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, SUCH INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SUCH SECTION 951 OF THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AS ADJUSTED BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION, RECEIVED FROM A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, less, (III) in the discretion of the commissioner, any interest deductions directly or indirectly attributable to that income. In lieu of subtracting from its exempt CFC income the amount of those interest deductions, the taxpayer may make a revocable election to reduce its total exempt CFC income by forty percent. If the taxpayer makes this election, the taxpayer must also make the elections provided for in S. 7509--A 76 A. 9509--A paragraph (b) of subdivision six of this section and paragraph (c) of this subdivision. If the taxpayer subsequently revokes this election, the taxpayer must revoke the elections provided for in paragraph (b) of subdivision six of this section and paragraph (c) of this subdivision. A taxpayer which does not make this election because it has no exempt CFC income will not be precluded from making those other elections. § 2. Subparagraph 6 of paragraph (a) of subdivision 9 of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (6) any amount treated as dividends pursuant to section seventy-eight of the internal revenue code TO THE EXTENT THAT SUCH DIVIDENDS ARE NOT INCLUDED IN THE COMPUTATION OF THE DEDUCTION ALLOWED UNDER SECTION TWO HUNDRED FIFTY OF SUCH CODE; § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 23 to read as follow: (23) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE. § 4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as amended by section 13-a of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (1) If any taxpayer fails to file a declaration of estimated tax under article nine-A of this chapter, or fails to pay all or any part of an amount which is applied as an installment against such estimated tax, it shall be deemed to have made an underpayment of estimated tax. There shall be added to the tax for the taxable year an amount at the under- payment rate set by the commissioner pursuant to section one thousand ninety-six of this article, or if no rate is set, at the rate of seven and one-half percent per annum upon the amount of the underpayment for the period of the underpayment but not beyond the fifteenth day of the [third] FOURTH month following the close of the taxable year. PROVIDED, HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF SUCH TAX RELATED TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY OR INDI- RECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER OR THE FORTY PERCENT REDUCTION OF SUCH EXEMPT CFC INCOME IN LIEU OF INTEREST ATTRIBUTION IF THE ELECTION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SUCH SECTION IS MADE. The amount of the underpayment shall be, with respect to any installment of estimated tax computed on the basis of either the preceding year's tax or the second preceding year's tax, the excess of the amount required to be paid over the amount, if any, paid on or before the last day prescribed for such payment or, with respect to any other install- ment of estimated tax, the excess of the amount of the installment which would be required to be paid if the estimated tax were equal to ninety- one percent of the tax shown on the return for the taxable year (or if no return was filed, ninety-one percent of the tax for such year) over the amount, if any, of the installment paid on or before the last day prescribed for such payment. In any case in which there would be no underpayment if "eighty percent" were substituted for "ninety-one percent" each place it appears in this subsection, the addition to the tax shall be equal to seventy-five percent of the amount otherwise determined. No underpayment shall be deemed to exist with respect to a declaration or installment otherwise due on or after the termination of existence of the taxpayer. S. 7509--A 77 A. 9509--A § 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017. PART LL Section 1. The state finance law is amended by adding a new section 92-gg to read as follows: § 92-GG. CHARITABLE GIFTS TRUST FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE STATE COMPTROLLER A SPECIAL FUND PURSUANT TO SECTION ELEVEN OF THIS CHAPTER TO BE KNOWN AS THE "CHARITABLE GIFTS TRUST FUND". 2. MONEYS IN THE CHARITABLE GIFTS TRUST FUND SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER OR THE COMMISSIONER OF TAXATION AND FINANCE. PROVIDED, HOWEVER THAT ANY MONEYS OF THE FUND NOT REQUIRED FOR IMMEDIATE USE MAY, AT THE DISCRETION OF THE COMPTROLLER, IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET, BE INVESTED BY THE COMPTROLLER IN OBLIGATIONS OF THE UNITED STATES OR THE STATE. THE PROCEEDS OF ANY SUCH INVESTMENT SHALL BE RETAINED BY THE FUND AS ASSETS TO BE USED FOR PURPOSES OF THE FUND. 3. EXCEPT AS SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS SECTION, NO MONEYS FROM THE CHARITABLE GIFTS TRUST FUND SHALL BE TRANSFERRED TO ANY OTHER FUND, NOR SHALL MONEYS FROM THE FUND BE USED TO MAKE PAYMENTS FOR ANY PURPOSE OTHER THAN THE PURPOSES SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS SECTION. 4. THE CHARITABLE GIFTS TRUST FUND SHALL HAVE TWO SEPARATE AND DISTINCT ACCOUNTS, AS SET FORTH IN PARAGRAPHS A AND B OF THIS SUBDIVI- SION. MONEYS IN EACH OF THE ACCOUNTS SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS OF ANY OTHER ACCOUNT WITH- IN THE FUND. A. THE "HEALTH CHARITABLE ACCOUNT" SHALL CONSIST OF GRANTS, GIFTS OR BEQUESTS RECEIVED BY THE STATE, AND ALL OTHER MONEYS CREDITED OR TRANS- FERRED THERETO FROM ANY OTHER FUND OR SOURCE. MONEYS OF SUCH ACCOUNT SHALL ONLY BE EXPENDED FOR THE SUPPORT OF SERVICES RELATING TO PRIMARY, PREVENTIVE, AND INPATIENT HEALTH CARE, ROUTINE DENTAL AND VISION CARE, HUNGER PREVENTION AND NUTRITIONAL ASSISTANCE, AND OTHER SERVICES PROVIDED TO NEW YORK STATE RESIDENTS WITH THE OVERALL GOAL OF ENSURING THAT NEW YORK STATE RESIDENTS HAVE ACCESS TO QUALITY HEALTH CARE AND OTHER RELATED SERVICES. B. THE "ELEMENTARY AND SECONDARY EDUCATION CHARITABLE ACCOUNT" SHALL CONSIST OF GRANTS, GIFTS OR BEQUESTS RECEIVED BY THE STATE FOR THE SUPPORT OF ELEMENTARY AND SECONDARY EDUCATION FOR CHILDREN IN THE STATE AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE. MONEYS OF SUCH ACCOUNT SHALL ONLY BE EXPENDED FOR THE PROVISION OF ELEMENTARY AND SECONDARY EDUCATION FOR CHILDREN IN THE STATE. § 2. Section 606 of the tax law is amended by adding a new subsection (iii) to read as follows: (III) CREDIT FOR CONTRIBUTIONS TO CERTAIN FUNDS. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, AN INDIVID- UAL TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED UNDER THIS ARTICLE FOR AN AMOUNT EQUAL TO EIGHTY-FIVE PERCENT OF THE AMOUNT CONTRIBUTED BY THE TAXPAYER DURING THE IMMEDIATELY PRECEDING TAXABLE YEAR TO ANY OR ALL OF THE FOLLOWING ACCOUNTS WITHIN THE CHARITABLE GIFTS TRUST FUND SET FORTH IN SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW: THE HEALTH CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH A OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW, OR THE ELEMENTA- S. 7509--A 78 A. 9509--A RY AND SECONDARY EDUCATION CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH B OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW. § 3. Section 1604 of the education law is amended by adding a new subdivision 44 to read as follows: 44. TO ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE TRUSTEES, TO RECEIVE CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE DISTRICT FOR GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY BE INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICIPAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE TRUSTEES, THE MONIES OF SUCH CHARITABLE FUND SHALL BE TRANSFERRED TO THE SCHOOL DISTRICT'S GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE SCHOOL DISTRICT FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER. THE SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOSITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES. § 4. Section 1709 of the education law is amended by adding a new subdivision 12-b to read as follows: 12-B. TO ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE BOARD, TO RECEIVE CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE DISTRICT FOR GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY BE INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICIPAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE BOARD, THE MONIES OF SUCH CHARITABLE FUND SHALL BE TRANSFERRED TO THE SCHOOL DISTRICT'S GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE SCHOOL DISTRICT FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER. THE SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOSITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES. § 5. Section 2590-h of the education law is amended by adding a new subdivision 54 to read as follows: 54. TO ESTABLISH A CHARITABLE FUND TO RECEIVE CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE CITY SCHOOL DISTRICT FOR GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY BE INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICI- PAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE CHANCELLOR, THE MONIES OF SUCH CHARITABLE FUND SHALL BE TRANSFERRED TO THE CITY SCHOOL DISTRICT'S GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE CITY FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER. THE CITY SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOS- ITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES. § 6. The general municipal law is amended by adding two new sections 6-t and 6-u to read as follows: S. 7509--A 79 A. 9509--A § 6-T. CHARITABLE GIFTS RESERVE FUND. 1. THE GOVERNING BOARD OF ANY COUNTY OR NEW YORK CITY MAY ESTABLISH A RESERVE FUND TO BE KNOWN AS A CHARITABLE GIFTS RESERVE FUND, THE MONEYS OF WHICH ARE TO BE USED FOR THE PAYMENT OF HEALTH CARE EXPENSES AND MAY BE USED TO DEFRAY THE LOCAL SOCIAL SERVICES DISTRICT'S YEARLY NET SHARE OF MEDICAL ASSISTANCE EXPENDITURES. 2. SUCH FUND MAY RECEIVE CHARITABLE CONTRIBUTIONS FROM PROPERTY OWNERS OF THE COUNTY OR NEW YORK CITY. 3. THE MONEYS IN SUCH FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD, OR THE CHIEF FISCAL OFFICER OF SUCH COUNTY, OR NEW YORK CITY, IF THE GOVERNING BOARD SHALL DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE MONEYS IN SUCH FUND IN THE MANNER PROVIDED BY SECTION ELEVEN OF THIS ARTICLE. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO DEPOSITED OR INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. THE SEPARATE IDENTITY OF SUCH FUND SHALL BE MAINTAINED WHETHER ITS ASSETS CONSIST OF CASH OR INVESTMENTS OR BOTH. 4. AT THE END OF THE FISCAL YEAR, THE GOVERNING BOARD OF THE COUNTY OR NEW YORK CITY, WITHIN SIXTY DAYS OF THE CLOSE OF THE FISCAL YEAR, SHALL TRANSFER THE FUNDS TO THE GENERAL FUND OR OTHER FUND OF THE MUNICIPAL CORPORATION FOR THE PURPOSE OF PAYING HEALTH CARE EXPENSES, INCLUDING THE LOCAL SOCIAL SERVICES DISTRICT'S YEARLY NET SHARE OF MEDICAL ASSIST- ANCE EXPENDITURES. 5. THE GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR PROPERTY OWNERS OF THE COUNTY OR NEW YORK CITY TO MAKE CONTRIBUTIONS TO THE CHARITABLE GIFTS RESERVE FUND, WHICH SHALL INCLUDE THE PROVISION OF A WRITTEN ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR. 6. NOTHING IN THIS SECTION SHALL RELIEVE THE LOCAL SOCIAL SERVICES DISTRICT OF ITS ONGOING OBLIGATION TO PAY THE YEARLY NET SHARE OF MEDICAL ASSISTANCE EXPENDITURES, NOR RELIEVE A LOCAL DISTRICT OF SOCIAL SERVICES OF ITS STATUTORY AND REGULATORY FUNCTIONS IN THE ADMINIS- TRATION, SUPERVISION AND OPERATION OF THE MEDICAL ASSISTANCE PROGRAM IN ITS LOCALITY. § 6-U. CHARITABLE GIFTS RESERVE FUND. 1. THE GOVERNING BOARD OF ANY CITY WITH A POPULATION LESS THAN ONE MILLION, TOWN OR VILLAGE MAY ESTAB- LISH A RESERVE FUND TO BE KNOWN AS A CHARITABLE GIFTS RESERVE FUND. 2. SUCH FUND MAY RECEIVE CHARITABLE CONTRIBUTIONS FROM PROPERTY OWNERS OF THE TOWN, VILLAGE OR CITY. 3. THE MONEYS IN SUCH FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD, OR THE CHIEF FISCAL OFFICER OF SUCH TOWN, VILLAGE OR CITY, IF THE GOVERNING BOARD SHALL DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE MONEYS IN SUCH FUND IN THE MANNER PROVIDED BY SECTION ELEVEN OF THIS ARTICLE. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO DEPOSITED OR INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. THE SEPARATE IDENTITY OF SUCH FUND SHALL BE MAINTAINED WHETHER ITS ASSETS CONSIST OF CASH OR INVESTMENTS OR BOTH. 4. AT THE END OF THE FISCAL YEAR, THE GOVERNING BOARD OF THE TOWN, VILLAGE OR CITY, WITHIN SIXTY DAYS OF THE CLOSE OF THE FISCAL YEAR, MAY TRANSFER THE FUNDS TO THE GENERAL FUND OR OTHER FUND OF THE MUNICIPAL CORPORATION, SO THAT THE FUNDS MAY BE USED FOR CHARITABLE PURPOSES. 5. THE GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR PROPERTY OWNERS OF THE TOWN, VILLAGE OR CITY TO MAKE CONTRIBUTIONS TO THE CHARITABLE GIFTS RESERVE FUND, WHICH SHALL INCLUDE THE PROVISION OF A WRITTEN ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR. S. 7509--A 80 A. 9509--A § 7. The real property tax law is amended by adding a new section 980-a to read as follows: § 980-A. TAX CREDITS FOR CONTRIBUTIONS TO CERTAIN FUNDS. 1. (A) A MUNICIPAL CORPORATION THAT HAS ESTABLISHED A FUND PURSUANT TO SUBDIVI- SION FORTY-FOUR OF SECTION SIXTEEN HUNDRED FOUR OF THE EDUCATION LAW, SUBDIVISION TWELVE-B OF SECTION SEVENTEEN HUNDRED NINE OF THE EDUCATION LAW, SUBDIVISION FIFTY-FOUR OF SECTION TWENTY-FIVE HUNDRED NINETY-H OF THE EDUCATION LAW, OR SECTION SIX-T OR SIX-U OF THE GENERAL MUNICIPAL LAW, MAY ADOPT A LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, A RESOLUTION, AUTHORIZING A TAX CREDIT TO BE PROVIDED PURSUANT TO THIS SECTION FOR CONTRIBUTIONS TO SUCH FUND. FOR PURPOSES OF THIS SECTION, A MUNICIPAL CORPORATION THAT HAS ESTABLISHED SUCH A FUND AND AUTHORIZED SUCH A CREDIT SHALL BE REFERRED TO AS A "PARTICIPATING" MUNICIPAL CORPO- RATION. (B) ON AND AFTER DECEMBER FIRST, TWO THOUSAND EIGHTEEN, THE OWNER OR OWNERS OF REAL PROPERTY SHALL BE ALLOWED A CREDIT AGAINST THE REAL PROP- ERTY TAXES OF A PARTICIPATING MUNICIPAL CORPORATION THAT HAVE BEEN IMPOSED UPON SUCH PROPERTY. THE AMOUNT OF SUCH CREDIT SHALL EQUAL NINE- TY-FIVE PERCENT OF THE AMOUNT CONTRIBUTED BY ONE OR MORE OF THE OWNERS OF SUCH PROPERTY DURING THE "ASSOCIATED CREDIT YEAR" AS DEFINED IN THIS SECTION, TO ANY OR ALL OF THE FUNDS ESTABLISHED BY SUCH MUNICIPAL CORPO- RATION, SUBJECT TO THE LIMIT ESTABLISHED PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION, IF ANY. (C) THE PARTICIPATING MUNICIPAL CORPORATION MAY ESTABLISH A LIMIT UPON THE AMOUNT OF SUCH CREDIT TO BE ALLOWED IN ANY GIVEN FISCAL YEAR, IN WHICH CASE THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED THE LIMIT SO ESTABLISHED. ANY SUCH LIMIT SHALL BE ADOPTED BY LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, BY RESOLUTION, WHICH LOCAL LAW OR RESOLUTION MAY EITHER BE THE SAME AS OR SEPARATE FROM THE LOCAL LAW OR RESOLUTION THAT INITIALLY AUTHORIZED THE CREDIT. ONCE SUCH A LIMIT HAS BEEN ADOPTED, IT MAY BE AMENDED OR REPEALED THEREAFTER BY LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, BY RESOLUTION, PROVIDED THAT ANY SUCH AMENDMENT OR REPEAL SHALL ONLY APPLY TO TAXES OF THE PARTICIPATING MUNICIPAL CORPORATION FOR FISCAL YEARS COMMENCING AFTER THE ADOPTION OF SUCH LOCAL LAW OR RESOLUTION. A COPY OF ANY LOCAL LAW OR RESOLUTION ESTABLISHING, AMENDING OR REPEALING SUCH A LIMIT SHALL BE PROVIDED TO THE COLLECTING OFFICER WHO COLLECTS THE TAXES OF THE PARTICIPATING MUNICIPAL CORPORATION. 2. FOR PURPOSES OF THIS SECTION, THE "ASSOCIATED CREDIT YEAR" SHALL BE THE TWELVE-MONTH PERIOD DURING WHICH THE OWNER OF THE PROPERTY HAS MADE A CONTRIBUTION DESCRIBED IN SUBDIVISION ONE OF THIS SECTION THAT ENDS ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE TAXES OF THE PARTICIPATING MUNICIPAL CORPORATION MAY BE PAID WITHOUT INTEREST OR PENALTIES, SUBJECT TO THE FOLLOWING: (A) WHERE SUCH TAXES ARE PAYABLE IN INSTALLMENTS, SUCH TWELVE-MONTH PERIOD SHALL END ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE FIRST INSTALLMENT OF SUCH TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES. (B) WHERE A PARTICIPATING MUNICIPAL CORPORATION IS A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, SUCH TWELVE-MONTH PERIOD SHALL END ON THE LAST DAY PRESCRIBED BY LAW ON WHICH CITY TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES, OR IF APPLICABLE, ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE FIRST INSTALLMENT OF SUCH TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES. (C) EACH SUCH TWELVE-MONTH PERIOD SHALL BE DETERMINED WITHOUT REGARD TO THE POSSIBILITY THAT THE PERIOD PRESCRIBED BY LAW FOR PAYING SUCH TAXES WITHOUT INTEREST OR PENALTIES MAY BE EXTENDED DUE TO A DELAY IN S. 7509--A 81 A. 9509--A THE FIRST PUBLICATION OF THE COLLECTING OFFICER'S NOTICE AS PROVIDED BY SECTIONS THIRTEEN HUNDRED TWENTY-TWO OR THIRTEEN HUNDRED TWENTY-FOUR OF THIS CHAPTER OR A COMPARABLE LAW, OR DUE TO AN EXECUTIVE ORDER ISSUED IN CONNECTION WITH A STATE DISASTER EMERGENCY AS PROVIDED BY SUBDIVISION TWO OF SECTION NINE HUNDRED TWENTY-FIVE-A OF THIS CHAPTER. 3. THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE ADMINISTERED AS FOLLOWS: (A) THE ADMINISTRATOR OF THE ACCOUNT OR ITS DESIGNATED AGENT SHALL, UPON RECEIVING A CONTRIBUTION TO AN ACCOUNT SPECIFIED IN SUBDIVISION ONE OF THIS SECTION DURING A CREDIT YEAR, FURNISH THE PROPERTY OWNER WITH AN ACKNOWLEDGEMENT IN DUPLICATE. SUCH ACKNOWLEDGEMENT SHALL BE PROVIDED ON A FORM PRESCRIBED BY THE COMMISSIONER AND SHALL SPECIFY THE AMOUNT OF THE CONTRIBUTION, THE NAME AND ADDRESS OF THE DONOR, THE DATE THE CONTRIBUTION WAS RECEIVED, THE AUTHORIZED SIGNATURE OF THE ADMINISTRATOR OR AGENT, AND SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL REQUIRE. (B) AFTER RECEIVING SUCH AN ACKNOWLEDGEMENT, THE PROPERTY OWNER MAY PRESENT IT TO THE APPROPRIATE COLLECTING OFFICER ON OR BEFORE THE LAST DAY PRESCRIBED BY LAW ON WHICH TAXES MAY BE PAID WITHOUT INTEREST OR PENALTY, TOGETHER WITH A CREDIT CLAIM ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH CREDIT CLAIM FORM SHALL CONTAIN THE NAME OF THE PROPERTY OWNER OR OWNERS, THE DATE AND AMOUNT OF THE CONTRIBUTIONS MADE TO THE ACCOUNT DURING THE ASSOCIATED CREDIT YEAR, THE ADDRESS OF THE PROPERTY TO WHICH THE CREDIT CLAIM RELATES, AND SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL REQUIRE. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COLLECTING OFFICER SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO GRANT THE PROPERTY OWNER A TAX CREDIT EQUAL TO NINETY- FIVE PERCENT OF THE AMOUNT OF THE CONTRIBUTIONS MADE DURING THE ASSOCI- ATED CREDIT YEAR AS SPECIFIED ON THE ACKNOWLEDGEMENT, AND TO REDUCE THE TAX LIABILITY ON THE PARCEL ACCORDINGLY, PROVIDED THAT SUCH CREDIT MAY NOT EXCEED THE LIMIT ESTABLISHED BY THE PARTICIPATING MUNICIPAL CORPO- RATION PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, IF SUCH A LIMIT HAS BEEN ESTABLISHED. WHERE TAXES ARE PAYABLE IN INSTALL- MENTS, IF THE CREDIT EXCEEDS THE AMOUNT OF THE FIRST INSTALLMENT, THE EXCESS SHALL BE APPLIED TO FUTURE INSTALLMENTS UNTIL EXHAUSTED. (C) IF THE PROPERTY OWNER FAILS TO PRESENT THE ACKNOWLEDGMENT AND CREDIT CLAIM FORM TO THE COLLECTING OFFICER ON OR BEFORE THE LAST DAY PRESCRIBED BY LAW ON WHICH TAXES MAY BE PAID WITHOUT INTEREST OR PENAL- TY, HE OR SHE MAY PRESENT THE SAME TO THE CHIEF FISCAL OFFICER OR CHIEF FINANCIAL OFFICER OF THE PARTICIPATING MUNICIPAL CORPORATION, OR TO A MEMBER OF HIS OR HER STAFF. SUCH OFFICER SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO GRANT THE PROPERTY OWNER A REFUND OF SCHOOL DISTRICT TAXES IN THE AMOUNT OF THE CREDIT, WHICH AMOUNT SHALL BE EQUAL TO NINE- TY-FIVE PERCENT OF THE TOTAL CONTRIBUTIONS MADE DURING THE ASSOCIATED CREDIT YEAR, PROVIDED THAT SUCH REFUND SHALL NOT EXCEED THE SCHOOL DISTRICT TAXES THAT HAVE BEEN PAID ON THE PROPERTY OR THE LIMIT ESTAB- LISHED PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, IF ANY. PROVIDED FURTHER, THAT NO INTEREST SHALL BE PAYABLE ON SUCH REFUND IF PAID WITHIN FORTY-FIVE DAYS OF THE RECEIPT OF THE ACKNOWLEDGMENT AND CREDIT CLAIM FORM. THE OWNER OF THE PROPERTY MAY FILE SUCH REFUND CLAIM WITH THE AUTHORIZED OFFICER AT ANY TIME DURING THE THREE YEAR PERIOD BEGINNING IMMEDIATELY AFTER THE LAST DAY SUCH TAXES WERE PAYABLE WITHOUT INTEREST OR PENALTY. 4. THE AMOUNT OF THE ITEMIZED DEDUCTION THAT MAY BE CLAIMED BY A TAXPAYER UNDER SECTION SIX HUNDRED FIFTEEN OF THE TAX LAW WITH RESPECT TO THE TAXES PAID ON SUCH PROPERTY MAY NOT EXCEED THE AMOUNT OF THE TAXES OF A PARTICIPATING MUNICIPAL CORPORATION THAT HAVE BEEN IMPOSED S. 7509--A 82 A. 9509--A UPON SUCH PROPERTY MINUS THE AMOUNT OF THE CREDIT PROVIDED PURSUANT TO THIS SECTION. § 8. This act shall take effect immediately; provided, however, that the amendments to section 2590-h of the education law made by section five of this act shall not affect the expiration and reversion of such section and shall expire and be deemed repealed therewith; and provided further that if section 2590-h of the education law expires or is repealed and is reverted prior to the effective date of this act, section five of this act shall not take effect. PART MM Section 1. The tax law is amended by adding a new article 24 to read as follows: ARTICLE 24 EMPLOYER COMPENSATION EXPENSE TAX SECTION 850. DEFINITIONS. 851. EMPLOYER ELECTION. 852. IMPOSITION AND RATE OF TAX. 853. PASS THROUGH OF TAX. 854. PAYMENT OF TAX. 855. EMPLOYEE CREDIT. 856. DEPOSIT AND DISPOSITION OF REVENUE. 857. PROCEDURAL PROVISIONS. § 850. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: (A) EMPLOYER. EMPLOYER MEANS AN EMPLOYER THAT IS REQUIRED BY SECTION SIX HUNDRED SEVENTY-ONE OF THIS CHAPTER TO DEDUCT AND WITHHOLD TAX FROM WAGES. (B) ELECTING EMPLOYER. ELECTING EMPLOYER IS AN EMPLOYER THAT HAS MADE THE ELECTION PROVIDED FOR IN SECTION EIGHT HUNDRED FIFTY-ONE OF THIS ARTICLE. (C) PAYROLL EXPENSE. PAYROLL EXPENSE MEANS WAGES AND COMPENSATION AS DEFINED IN SECTIONS 3121 AND 3231 OF THE INTERNAL REVENUE CODE (WITHOUT REGARD TO SECTION 3121(A)(1) AND SECTION 3231(E)(2)(A)(I)), PAID TO ALL COVERED EMPLOYEES. (D) COVERED EMPLOYEE. COVERED EMPLOYEE MEANS AN EMPLOYEE OF AN ELECT- ING EMPLOYER WHO IS REQUIRED TO HAVE AMOUNTS WITHHELD UNDER SECTION SIX HUNDRED SEVENTY-ONE OF THIS CHAPTER AND RECEIVES ANNUAL WAGES AND COMPENSATION FROM HIS OR HER EMPLOYER OF MORE THAN FORTY THOUSAND DOLLARS ANNUALLY. § 851. EMPLOYER ELECTION. (A) ANY EMPLOYER WHO EMPLOYS COVERED EMPLOY- EES IN THE STATE SHALL BE ALLOWED TO MAKE AN ELECTION TO BE TAXED UNDER THIS ARTICLE. (B) IN ORDER TO BE EFFECTIVE, THE ELECTION MUST BE MADE BY (1) UNANI- MOUS CONSENT OF ALL OWNERS OF THE EMPLOYER AT THE TIME THE ELECTION IS MADE IF THE EMPLOYER IS NOT A CORPORATION; OR (2) IF THE EMPLOYER IS A FOR-PROFIT OR NOT-FOR-PROFIT CORPORATION, BY ANY OFFICER OR MANAGER OF THE EMPLOYER WHO IS AUTHORIZED UNDER THE LAW OF THE STATE WHERE THE CORPORATION IS INCORPORATED OR UNDER THE EMPLOYER'S ORGANIZATIONAL DOCU- MENTS TO MAKE THE ELECTION AND WHO REPRESENTS TO HAVING SUCH AUTHORI- ZATION UNDER PENALTY OF PERJURY; OR (3) IF THE EMPLOYER IS A TRUST, BY THE UNANIMOUS CONSENT OF ALL TRUSTEES; OR (4) IF THE EMPLOYER IS A GOVERNMENTAL ENTITY, BY THE CHIEF EXECUTIVE OFFICER OF SUCH GOVERNMENTAL ENTITY. (C) THE ELECTION MUST BE MADE BY OCTOBER FIRST OF A CALENDAR YEAR AND WILL TAKE EFFECT FOR THE IMMEDIATELY SUCCEEDING CALENDAR YEAR. IF AN S. 7509--A 83 A. 9509--A ELECTION IS MADE AFTER OCTOBER FIRST OF A CALENDAR YEAR, IT WILL FIRST TAKE EFFECT IN THE SECOND SUCCEEDING CALENDAR YEAR. § 852. IMPOSITION AND RATE OF TAX. A TAX IS HEREBY IMPOSED ON THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES. FOR TWO THOUSAND NINETEEN, THE TAX SHALL BE EQUAL TO ONE AND ONE-HALF PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. FOR TWO THOUSAND TWENTY, THE TAX SHALL BE EQUAL TO THREE PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. FOR TWO THOUSAND TWEN- TY-ONE AND THEREAFTER, THE TAX SHALL BE EQUAL TO FIVE PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. AN ELECTING EMPLOYER SHALL ONLY BE SUBJECT TO THE TAX IMPOSED UNDER THIS ARTICLE ON THE PAYROLL EXPENSE PAID TO ANY COVERED EMPLOYEE DURING THE CALENDAR YEAR IN EXCESS OF FORTY THOUSAND DOLLARS. § 853. PASS THROUGH OF TAX. AN EMPLOYER CANNOT DEDUCT FROM THE WAGES OR COMPENSATION OF AN EMPLOYEE ANY AMOUNT THAT REPRESENTS ALL OR ANY PORTION OF THE TAX IMPOSED ON THE EMPLOYER UNDER THIS ARTICLE. § 854. PAYMENT OF TAX. (A) EMPLOYERS WITH PAYROLL EXPENSE. THE TAX IMPOSED ON THE PAYROLL EXPENSE OF ELECTING EMPLOYERS UNDER SECTION EIGHT HUNDRED FIFTY-TWO OF THIS ARTICLE MUST BE PAID AT THE SAME TIME THE ELECTING EMPLOYER IS REQUIRED TO REMIT PAYMENTS UNDER SECTION SIX HUNDRED SEVENTY-FOUR OF THIS CHAPTER; PROVIDED HOWEVER, THAT ELECTING EMPLOYERS SUBJECT TO THE PROVISIONS IN SECTION NINE OF THIS CHAPTER MUST PAY THE TAX ON THE PAYROLL EXPENSE AT THE SAME TIME AS THE WITHHOLDING TAX REMITTED UNDER THE ELECTRONIC PAYMENT REPORTING SYSTEM AND THE ELEC- TRONIC FUNDS TRANSFER SYSTEM AUTHORIZED BY SECTION NINE OF THIS CHAPTER. (B) RESPONSIBLE PERSON LIABILITY. ANY OFFICER, DIRECTOR OR EMPLOYEE OF A CORPORATION OR OF A DISSOLVED CORPORATION, ANY EMPLOYEE OF A PARTNER- SHIP, ANY EMPLOYEE OR MANAGER OF A LIMITED LIABILITY COMPANY, ANY TRUS- TEE OF A TRUST, OR ANY EMPLOYEE OF AN INDIVIDUAL PROPRIETORSHIP, ANY PARTNER OF A PARTNERSHIP OR ANY MEMBER OF A LIMITED LIABILITY COMPANY, WHO AS SUCH OFFICER, DIRECTOR, EMPLOYEE, MANAGER, PARTNER OR MEMBER IS UNDER A DUTY TO ACT FOR SUCH CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR INDIVIDUAL PROPRIETORSHIP IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE, SHALL BE JOINTLY AND SEVERALLY LIABLE WITH THE ELECTING EMPLOYER FOR ANY TAX, PENALTY OR INTEREST OWED UNDER THIS ARTICLE. § 855. EMPLOYEE CREDIT. A COVERED EMPLOYEE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER, COMPUTED PURSUANT TO THE PROVISIONS OF SUBSECTION (AAAA) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. § 856. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL- TIES, AND FEES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER. § 857. PROCEDURAL PROVISIONS. (A) GENERAL. ALL PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF ARTICLE TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD BEEN SPECIFICALLY ADJUSTED FOR AND EXPRESSLY REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. NOTWITHSTANDING THE PRECEDING SENTENCE, NO CREDIT AGAINST TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER CAN BE USED TO OFFSET THE TAX DUE UNDER THIS ARTICLE. S. 7509--A 84 A. 9509--A (B) NOTWITHSTANDING THE PROVISIONS OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS CHAPTER, IF THE COMMISSIONER DETERMINES THAT A PERSON IS LIABLE FOR ANY TAX, PENALTY OR INTEREST UNDER THIS ARTICLE PURSUANT TO SUBSECTION (B) OF SECTION EIGHT HUNDRED FIFTY-FOUR OF THIS ARTICLE, UPON REQUEST IN WRITING OF SUCH PERSON, THE COMMISSIONER SHALL DISCLOSE IN WRITING TO SUCH PERSON (1) THE NAME OF ANY OTHER PERSON THE COMMISSIONER HAS DETERMINED TO BE LIABLE FOR SUCH TAX, PENALTY OR INTEREST UNDER THIS ARTICLE FOR THE ELECTING EMPLOYER, AND (2) WHETHER THE COMMISSIONER HAS ATTEMPTED TO COLLECT SUCH TAX, PENALTY OR INTEREST FROM SUCH OTHER PERSON OR ELECTING EMPLOYER, THE GENERAL NATURE OF SUCH COLLECTION ACTIVITIES, AND THE AMOUNT COLLECTED. (C) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER MAY REQUIRE THAT ALL FILINGS OF FORMS OR RETURNS UNDER THIS ARTICLE MUST BE FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE PAID ELECTRON- ICALLY. THE COMMISSIONER MAY PRESCRIBE THE METHODS FOR QUARTERLY FILINGS BY ELECTING EMPLOYERS, INCLUDING BUT NOT LIMITED TO, THE INCLU- SION OF SPECIFIC EMPLOYEE-LEVEL DETAIL. § 2. Section 606 of the tax law is amended by adding a new subsection (aaaa) to read as follows: (AAAA) ARTICLE TWENTY-FOUR EMPLOYEE CREDIT. A COVERED EMPLOYEE OF AN ELECTING EMPLOYER SHALL BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AS PROVIDED IN THIS SUBSECTION. FOR PURPOSES OF THIS SUBSECTION THE TERMS "COVERED EMPLOYEE" AND "ELECTING EMPLOYER" SHALL HAVE THE SAME MEANINGS AS UNDER SECTION EIGHT HUNDRED FIFTY OF THIS CHAPTER. (1) FOR TWO THOUSAND NINETEEN, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE COVERED EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE COVERED EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) ONE AND ONE-HALF PERCENT AND (III) THE RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. (2) FOR TWO THOUSAND TWENTY, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE COVERED EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE COVERED EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) THREE PERCENT AND (III) THE RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. (3) FOR TWO THOUSAND TWENTY-ONE AND THERE- AFTER, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE COVERED EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE COVERED EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) FIVE PERCENT AND (III) THE RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS ALLOWED FOR A TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING S. 7509--A 85 A. 9509--A YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. § 3. Subdivision 1 of section 171-a of the tax law, as amended by section 15 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows: 1. All taxes, interest, penalties and fees collected or received by the commissioner or the commissioner's duly authorized agent under arti- cles nine (except section one hundred eighty-two-a thereof and except as otherwise provided in section two hundred five thereof), nine-A, twelve-A (except as otherwise provided in section two hundred eighty- four-d thereof), thirteen, thirteen-A (except as otherwise provided in section three hundred twelve thereof), eighteen, nineteen, twenty (except as otherwise provided in section four hundred eighty-two there- of), twenty-B, twenty-one, twenty-two, TWENTY-FOUR, twenty-six, twenty- eight (except as otherwise provided in section eleven hundred two or eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise provided in section fourteen hundred twenty-one thereof), thirty-three and thirty-three-A of this chapter shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, to the credit of the comptroller. Such an account may be established in one or more of such depositories. Such deposits shall be kept separate and apart from all other money in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected or received under such articles of this chapter, the comptroller shall retain in the comptroller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such articles of this chapter out of which amount the comptroller shall pay any refunds or reimbursements to which taxpay- ers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursuant to subdivision five of section one hundred seventy-one-d and subdivision six of section one hundred seven- ty-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- S. 7509--A 86 A. 9509--A ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 4. Subdivision 1 of section 171-a of the tax law, as amended by section 16 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows: 1. All taxes, interest, penalties and fees collected or received by the commissioner or the commissioner's duly authorized agent under arti- cles nine (except section one hundred eighty-two-a thereof and except as otherwise provided in section two hundred five thereof), nine-A, twelve-A (except as otherwise provided in section two hundred eighty- four-d thereof), thirteen, thirteen-A (except as otherwise provided in section three hundred twelve thereof), eighteen, nineteen, twenty (except as otherwise provided in section four hundred eighty-two there- of), twenty-one, twenty-two, TWENTY-FOUR, twenty-six, twenty-eight (except as otherwise provided in section eleven hundred two or eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise provided in section fourteen hundred twenty-one thereof), thirty-three and thirty-three-A of this chapter shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, to the credit of the comptroller. Such an account may be established in one or more of such depositories. Such deposits shall be kept separate and S. 7509--A 87 A. 9509--A apart from all other money in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected or received under such articles of this chapter, the comptroller shall retain in the comptroller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such articles of this chapter out of which amount the comptroller shall pay any refunds or reimbursements to which taxpay- ers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursuant to subdivision five of section one hundred seventy-one-d and subdivision six of section one hundred seven- ty-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated S. 7509--A 88 A. 9509--A spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 5. Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section 92-z of the state finance law, subdivision 2 as amended by section 30 of part T of chapter 57 of the laws of 2007, and subdivision 3 and para- graph (a) of subdivision 5 as added by section 1 of part I of chapter 383 of the laws of 2001, are amended to read as follows: 2. Such fund shall consist of [twenty-five] (A) FIFTY percent of receipts from the imposition of personal income taxes pursuant to arti- cle twenty-two of the tax law, less such amounts as the commissioner of taxation and finance may determine to be necessary for refunds, AND (B) FIFTY PERCENT OF RECEIPTS FROM THE IMPOSITION OF EMPLOYER COMPENSATION EXPENSE TAXES PURSUANT TO ARTICLE TWENTY-FOUR OF THE TAX LAW, LESS SUCH AMOUNTS AS THE COMMISSIONER OF TAXATION AND FINANCE MAY DETERMINE TO BE NECESSARY FOR REFUNDS. 3. (A) Beginning on the first day of each month, the comptroller shall deposit all of the receipts collected pursuant to section six hundred seventy-one of the tax law in the revenue bond tax fund until the amount of monthly receipts anticipated to be deposited pursuant to the certif- icate required in paragraph (b) of subdivision five of this section are met. On or before the twelfth day of each month, the commissioner of taxation and finance shall certify to the state comptroller the amounts specified in PARAGRAPH (A) OF subdivision two of this section relating to the preceding month and, in addition, no later than March thirty- first of each fiscal year the commissioner of taxation and finance shall certify such amounts relating to the last month of such fiscal year. The amounts so certified shall be deposited by the state comptroller in the revenue bond tax fund. (B) BEGINNING ON THE FIRST DAY OF EACH MONTH, THE COMPTROLLER SHALL DEPOSIT ALL OF THE RECEIPTS COLLECTED PURSUANT TO SECTION EIGHT HUNDRED FIFTY-FOUR OF THE TAX LAW IN THE REVENUE BOND TAX FUND UNTIL THE AMOUNT OF MONTHLY RECEIPTS ANTICIPATED TO BE DEPOSITED PURSUANT TO THE CERTIF- ICATE REQUIRED IN PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION ARE MET. ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNTS SPECIFIED IN PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION RELATING TO THE PRECEDING MONTH AND, IN ADDITION, NO LATER THAN MARCH THIRTY- FIRST OF EACH FISCAL YEAR THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY SUCH AMOUNTS RELATING TO THE LAST MONTH OF SUCH FISCAL YEAR. THE AMOUNTS SO CERTIFIED SHALL BE DEPOSITED BY THE STATE COMPTROLLER IN THE REVENUE BOND TAX FUND. (a) The state comptroller shall from time to time, but in no event later than the fifteenth day of each month (other than the last month of the fiscal year) and no later than the thirty-first day of the last S. 7509--A 89 A. 9509--A month of each fiscal year, pay over and distribute to the credit of the general fund of the state treasury all moneys in the revenue bond tax fund, if any, in excess of the aggregate amount required to be set aside for the payment of cash requirements pursuant to paragraph (b) of this subdivision, provided that an appropriation has been made to pay all amounts specified in any certificate or certificates delivered by the director of the budget pursuant to paragraph (b) of this subdivision as being required by each authorized issuer as such term is defined in section sixty-eight-a of this chapter for the payment of cash require- ments of such issuers for such fiscal year. Subject to the rights of holders of debt of the state, in no event shall the state comptroller pay over and distribute any moneys on deposit in the revenue bond tax fund to any person other than an authorized issuer pursuant to such certificate or certificates (i) unless and until the aggregate of all cash requirements certified to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for such fiscal year shall have been appropriated to such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or (ii) if, after having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made to the authorized issuers which was required to have been made pursuant to such certificate or certificates; provided, however, that no person, including such authorized issuers or the holders of revenue bonds, shall have any lien on moneys on deposit in the revenue bond tax fund. Any agreement entered into pursuant to section sixty- eight-c of this chapter related to any payment authorized by this section shall be executory only to the extent of such revenues available to the state in such fund. Notwithstanding subdivisions two and three of this section, in the event the aggregate of all cash requirements certi- fied to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for the fiscal year beginning on April first shall not have been appropriated to such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or, (ii) if, having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made pursuant to such certificate or certificates, all receipts collected pursuant to section six hundred seventy-one of the tax law AND SECTION EIGHT HUNDRED FIFTY-FOUR OF THE TAX LAW shall be deposited in the reven- ue bond tax fund until the greater of [twenty-five] FORTY percent of the AGGREGATE OF THE receipts from the imposition of (A) the personal income tax imposed by article twenty-two of the tax law AND (B) THE EMPLOYER COMPENSATION EXPENSE TAX IMPOSED BY ARTICLE TWENTY-FOUR OF THE TAX LAW for the fiscal year beginning on April first and as specified in the certificate or certificates filed by the director of the budget pursuant to this paragraph or [six] A TOTAL OF TWELVE billion dollars has been deposited in the revenue bond tax fund. Notwithstanding any other provision of law, if the state has appropriated and paid to the author- ized issuers the amounts necessary for the authorized issuers to meet their requirements for the current fiscal year pursuant to the certif- icate or certificates submitted by the director of the budget pursuant to paragraph (b) of this section, the state comptroller shall, on the last day of each fiscal year, pay to the general fund of the state all sums remaining in the revenue bond tax fund on such date except such amounts as the director of the budget may certify are needed to meet the S. 7509--A 90 A. 9509--A cash requirements of authorized issuers during the subsequent fiscal year. § 6. Subdivision 5 of section 68-c of the state finance law, as added by section 2 of part I of chapter 383 of the laws of 2001, is amended to read as follows: 5. Nothing contained in this article shall be deemed to restrict the right of the state to amend, repeal, modify or otherwise alter statutes imposing or relating to the taxes imposed pursuant to article twenty-two AND ARTICLE TWENTY-FOUR of the tax law. The authorized issuers shall not include within any resolution, contract or agreement with holders of the revenue bonds issued under this article any provision which provides that a default occurs as a result of the state exercising its right to amend, repeal, modify or otherwise alter the taxes imposed pursuant to article twenty-two AND ARTICLE TWENTY-FOUR of the tax law. § 7. This act shall take effect immediately; provided, however, that the amendments to subdivision 1 of section 171-a of the tax law made by section three of this act shall not affect the expiration of such subdi- vision and shall expire therewith, when upon such date the provisions of section four of this act shall take effect. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Parts A through MM of this act shall be as specifically set forth in the last section of such Parts.
2017-S7509B - Details
- See Assembly Version of this Bill:
- A9509
- Law Section:
- Executive Law
- Laws Affected:
- Amd Various Laws, generally
2017-S7509B - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption
2017-S7509B - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7509--B I N S E N A T E January 18, 2018 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT intentionally omitted (Part A); intentionally omitted (Part B); intentionally omitted (Part C); intentionally omitted (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general municipal law and section 2023-b of the education law, relating thereto (Part E); intentionally omitted (Part F); to amend the real property tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real prop- erty tax law relating to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extending the statute of limitations for assess- ing tax on amended returns (Part H); to amend the tax law, in relation to providing for employee wage reporting consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); intentionally omitted (Part L); intentionally omitted (Part M); intentionally omitted (Part N); intentionally omit- ted (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); intentionally omitted (Part S); intentionally omitted (Part T); intentionally omitted (Part U); inten- tionally omitted (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medi-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12674-06-8 S. 7509--B 2 cines and removing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); intentionally omitted (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relat- ing to the imposition of sales and compensating use taxes in certain counties, in relation to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); intentionally omitted (Part AA); intentionally omitted (Part BB); intentionally omitted (Part CC); intentionally omitted (Part DD); to amend the racing, pari-mutuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee; and providing for the repeal of certain provisions upon the expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to providing funds for the aftercare of retired horses (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); intentionally omitted (Part HH); to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; to repeal certain provisions of such law relating thereto; providing for the repeal of certain provisions upon expiration thereof (Part II); to amend the tax law and the administra- tive code of the city of New York, in relation to addressing changes made to the internal revenue code by Public Law 115-97 (Part JJ); to amend the tax law and the administrative code of the city of New York, in relation to federal gross income and federal deductions allowed pursuant to the internal revenue code (Part KK); intentionally omitted (Part LL); intentionally omitted (Part MM); to amend the real property tax law, in relation to establishing the senior capped real property school tax rate; and to amend the tax law, in relation to increasing the property tax relief credit (Part NN); to amend chapter 97 of the laws of 2011, amending the general municipal law and the education law relating to establishing limits upon school district and local govern- ment tax levies, in relation to eliminating the expiration of and making permanent certain provisions thereof (Part OO); to amend the tax law, in relation to tax on the furnishing of utility services (Part PP); to amend the public service law, in relation to certain costs and expenses (Part QQ); to amend the tax law, in relation to increasing the exemption for pensions and annuities for certain persons (Part RR); to amend the legislative law, in relation to requiring assent of two-thirds of the members for any bill that enacts or increases tax revenues (Part SS); to amend the state finance law, in relation to establishing a spending cap and increasing the maximum capacity of the rainy day fund (Part TT); to amend the tax law, in relation to establishing a credit for customers of certain private S. 7509--B 3 water utilities, in relation to requiring a feasibility study relating to the Jericho Water District; and providing for the repeal of such provisions upon the expiration thereof (Part UU); to amend the tax law and the administrative code of the city of New York, in relation to business income base and certain small business taxpayers (Part VV); to amend the real property tax law, in relation to the STAR exemption for property owned by small businesses (Part WW); to amend the tax law, in relation to minimum wage reimbursement credit (Part XX); to amend the tax law, in relation to extending the minimum wage reimbursement credit to seasonal employees (Part YY); to amend the tax law, in relation to tax credits for qualified pass-through manufactur- ers (Part ZZ); to amend the real property tax law, in relation to providing an exemption for security cameras installed on real property owned by a public utility (Part AAA); to amend the tax law, in relation to providing an exemption for tangible personal property and services sold by a cemetery; in relation to establishing an amnesty program for cemetery corporations (Part BBB); to amend the tax law and the parks, recreation and historic preservation law, in relation to the tax credit for rehabilitation of historic properties (Part CCC); to amend the tax law, in relation to establishing a personal income tax credit to preceptor clinicians who provide preceptor instruction (Part DDD); to amend the tax law, in relation to a television writers' and directors' fees and salaries credit (Part EEE); to amend the tax law and the administrative code of the city of New York, in relation to making technical corrections thereto; to repeal subsection (i) of section 612 of the tax law relating to the elimination of the personal income tax deduction for percentage depletion; and to repeal certain provisions of the tax law relating thereto (Part FFF); to amend the tax law, in relation to the donation of a human organ (Part GGG); to amend the tax law, in relation to the musical and theatrical production credit; and to amend part HH of chapter 59 of the laws of 2014 amending the tax law relating to a musical and theatrical production credit, in relation to extending the effectiveness of such provisions (Part HHH); to amend the education law and the tax law, in relation to establishing the college debt freedom account pilot program (Part III); to amend the tax law, in relation to establishing a reduction of certain taxpayer's federal adjusted gross income, for state personal income tax purposes, for student loan interest payments made by the taxpayer (Part JJJ); to amend the tax law, in relation to establishing a residential fuel oil storage tank credit and to direct the office of temporary and disability assistance to establish a program to assist eligible households in the replacement of residen- tial fuel oil storage tanks (Part KKK); to amend the tax law and the insurance law, in relation to credits for premiums paid for long-term care insurance policies (Part LLL); to amend the tax law, in relation to providing insurance corporations with a tax credit for investments made in rural business growth funds; and to amend the state finance law, in relation to establishing the New York agriculture and rural jobs fund (Part MMM); to amend the tax law, in relation to exempting school buses and certain equipment from sales and compensating use tax; and to amend the education law, in relation to the extension of certain transportation contracts (Part NNN); to amend the tax law and the education law, in relation to enacting the "education affordabili- ty act" (Part OOO); to amend the racing, pari-mutuel wagering and breeding law, in relation to the definition and licensing fees for dealer-controlled electronic table games (Part PPP); to amend the tax S. 7509--B 4 law, in relation to the percentage of free play allowance credits (Part QQQ); to amend the racing, pari-mutuel wagering and breeding law and the penal law, in relation to allowing certain interactive poker games (Part RRR); to amend the general municipal law, in relation to participation in games of bingo by minors (Part SSS); to amend the tax law, in relation to the disposition of vender fees for the operation of video lottery gaming at certain race tracks (Part TTT); to amend the racing, pari-mutuel wagering and breeding law, in relation to the disposition of net revenues of regional off-track betting corporations to participating counties (Part UUU); to amend the racing, pari-mutuel wagering and breeding law, in relation to creating the racing fan advisory council (Part VVV); to amend the racing, pari-mutuel wagering and breeding law, in relation to establishing the advisory council on retired race horses, within the New York state gaming commission, and providing for its powers and duties (Part WWW); to amend the racing, pari-mutuel wagering and breeding law, in relation to regulation of sports betting (Part XXX); to amend the racing, pari-mutuel wagering and breeding law, in relation to funds held in trust by a franchised corporation for a recognized horsemen's organization to be used as collateral to secure workers' compensation insurance coverage (Part YYY); to amend the tax law, in relation to exempting coin-operated tire inflation equipment from sales and use taxes (Part ZZZ); to amend the real property tax law, in relation to extending certain provisions exempting lands devoted to agricultural or horticultural use from taxation (Part AAAA); to amend the education law and the tax law, in relation to expanding the New York state college choice tuition savings program to include costs of elementary and secondary education (Part BBBB); to amend the tax law, in relation to the imposition of tax on combative sport matches or exhibitions (Part CCCC); to amend the tax law, in relation to gifts for the New York state general fund (Part DDDD); to amend the tax law and the economic development law, in relation to the creation of the empire state digital gaming media production credit; and providing for the repeal of such provisions upon expiration thereof (Part EEEE); to amend the civil practice law and rules, in relation to enacting the "local government jobs and revenue protection act of 2018" (Part FFFF); and to amend the tax law, in relation to the disposition of a portion of sales taxes collected for hotel occupancy in cities having a population of one million or more (Part GGGG) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year. Each component is wholly contained within a Part identified as Parts A through GGGG. The effective date for each partic- ular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A S. 7509--B 5 Intentionally Omitted PART B Intentionally Omitted PART C Intentionally Omitted PART D Intentionally Omitted PART E Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED. § 1-a. Section 3-d of the general municipal law is REPEALED. § 1-b. Section 2023-b of the education law is REPEALED. § 2. The general municipal law is amended by adding a new section 3-d to read as follows: § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE LOCAL GOVERNMENT UNIT DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER- RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR RESOLUTION WAS SUBSE- QUENTLY REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION- ER OF TAXATION AND FINANCE. 2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF SUCH A CERTIF- ICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A DULY ADOPTED LOCAL LAW OR RESOLUTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY LOCAL GOVERNMENT UNIT SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE TIME AND IN THE MANNER AS HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION. § 3. The education law is amended by adding a new section 2023-b to read as follows: § 2023-B. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF AN ELIGIBLE SCHOOL DISTRICT, THE CHIEF EXECUTIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL CERTIFY TO THE STATE COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMIS- SIONER THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER. S. 7509--B 6 2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE SCHOOL DISTRICT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR- IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN- TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS- SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI- VISION. § 4. Subdivision 3 of section 97-rrr of the state finance law, as amended by section 1 of part F of chapter 59 of the laws of 2015, is amended to read as follows: 3. The monies in such fund shall be appropriated for school property tax exemptions granted pursuant to the real property tax law and payable pursuant to section thirty-six hundred nine-e of the education law[, and for payments to the city of New York pursuant to section fifty-four-f of this chapter]. § 5. Section 925-b of the real property tax law, as amended by chapter 161 of the laws of 2006, is amended to read as follows: § 925-b. Extension; certain persons sixty-five years of age or over. Notwithstanding any contrary provision of this chapter, or any general, special or local law, code or charter, the governing body of a municipal corporation other than a county may, by resolution adopted prior to the levy of any taxes on real property located within such municipal corpo- ration, authorize an extension of no more than five business days for the payment of taxes without interest or penalty to any resident of such municipal corporation who has received an exemption pursuant to subdivi- sion four of section four hundred twenty-five or four hundred sixty-sev- en of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located within such municipal corporation. If such an extension is granted, and any taxes are not paid by the final date so provided, those taxes shall be subject to the same interest and penalties that would have applied if no extension had been granted. § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop- erty tax law is relettered paragraph (f) and two new paragraphs (d) and (e) are added to read as follows: (D) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY TO ESTABLISH A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH RESPECT TO THE TAXES SO COLLECTED. (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE NOT COLLECTED BY A COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE IS PROVIDED BY THE COUNTY, THEN BEFORE THE CITY, TOWN, VILLAGE OR SCHOOL DISTRICT MAY IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION, IT MUST OBTAIN WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES. § 7. Subparagraph (B) of paragraph 7 of subsection (eee) of section 606 of the tax law, as amended by section 1 of part G of chapter 59 of the laws of 2017, is amended to read as follows: S. 7509--B 7 (B) Notwithstanding any provision of law to the contrary, the names and addresses of individuals who have applied for or are receiving the credit authorized by this subsection may be disclosed to assessors [and], county directors of real property tax services, AND MUNICIPAL TAX COLLECTING OFFICERS. In addition, where an agreement is in place between the commissioner and the head of the tax department of another state, such information may be disclosed to such official or his or her desig- nees. Such information shall be considered confidential and shall not be subject to further disclosure pursuant to the freedom of information law or otherwise. § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop- erty tax law, as added by section 1 of part B of chapter 389 of the laws of 1997 and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (g) Computation and certification by commissioner. It shall be the responsibility of the commissioner to compute the exempt amount for each assessing unit in each county in the manner provided herein, and to certify the same to the assessor of each assessing unit and to the coun- ty director of real property tax services of each county. Such certif- ication shall be made at least twenty days before the last date prescribed by law for the filing of the tentative assessment roll. PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON A PRIOR YEAR ASSESSMENT ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION, AND PROVIDED FURTHER, THAT UPON RECEIPT OF SUCH CERTIFICATION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH- ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. § 8. Paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new subparagraph (A) to read as follows: (A) A MARRIED COUPLE MAY NOT RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON MORE THAN ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR, UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY A MARRIED COUPLE RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON ONE RESIDENCE WHILE RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE TO LEGAL SEPARATION. § 9. This act shall take effect immediately; provided, however, that section 3-d of the general municipal law, as added by section two of this act, shall expire and be deemed repealed on the same date and in the same manner as section 1 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided that section 2023-b of the education law, as added by section three of this act, shall expire and be deemed repealed on the same date and in the same manner as section 2 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided further that the amendments to paragraph 6 of subsection (eee) of section 606 of the tax law made by section eight of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. REPEAL NOTE: Section 606(bbb) of the Tax Law, section 3-d of the General Municipal Law and section 2023-b of the Education Law collec- tively constituted the enabling legislation for the tax freeze credit S. 7509--B 8 program. By the terms of those statutes, the tax freeze credit was only applicable to taxable years 2014, 2015 and 2016. Therefore, these provisions no longer serve a purpose, except for the reporting provisions, which facilitate the administration of the tax levy limit program and are being preserved in a reenacted section 3-d of the Gener- al Municipal Law and section 2023-b of the Education Law. PART F Intentionally Omitted PART G Section 1. Section 4 of chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, is amended to read as follows: § 4. This act shall take effect on the first of January of the second calendar year commencing after this act shall have become a law and shall apply to assessment rolls with taxable status dates on or after such date; provided, however, that this act shall expire and be deemed repealed [four] EIGHT years after such effective date; and provided, further, that no assessment of local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the first calendar year after this act shall have become a law shall be less than ninety percent or more than one hundred ten percent of the assessment of the same property on the date this act shall have become a law. § 2. Subdivision 3 of section 499-kkkk of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. (A) For assessment rolls with taxable status dates in each of the three calendar years including and following the year in which this section shall take effect, the commissioner shall establish no assess- ment ceiling that is less than ninety percent or more than one hundred ten percent of the assessment of such local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the second preceding calendar year from when this section shall take effect, except that the commissioner may estab- lish assessment ceilings below the ninety percent level or above the one hundred ten percent level to take into account any change in level of assessment and/or to take into account any additions or retirements to public utility mass real property or litigation affecting the value or taxable status of the local public utility mass real property initiated prior to the effective date of this section. (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN THE YEARS TWO THOUSAND EIGHTEEN, TWO THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING THAT IS BELOW THE LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL OF ASSESSMENT AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING THE VALUE OR TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI- ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND EIGHTEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN SEVENTY-FIVE S. 7509--B 9 PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIRTEEN. (II) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR MORE THAN ONE HUNDRED FIFTY PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIR- TEEN. (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND TWENTY, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN TWENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIRTEEN. § 3. This act shall take effect immediately, provided, however, that the amendments to subdivision three of section 499-kkkk of the real property tax law made by section two of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART H Section 1. Subsection (c) of section 683 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) AMENDED RETURNS. EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED RETURN IS FILED. § 2. Subsection (c) of section 1083 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) AMENDED RETURNS. EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED RETURN IS FILED. § 3. Subdivision (c) of section 11-1783 of the administrative code of the city of New York is amended by adding a new paragraph 9 to read as follows: (9) AMENDED RETURNS. EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVISION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED RETURN IS FILED. § 4. This act shall take effect immediately and shall apply to amended returns filed on or after the effective date of this act. S. 7509--B 10 PART I Section 1. Paragraph 1 of subdivision (d) of section 658 of the tax law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: (1) The commissioner of taxation and finance may prescribe regulations and instructions requiring returns of information to be made and filed on or before February twenty-eighth of each year as to the payment or crediting in any calendar year of amounts of six hundred dollars or more to any taxpayer under this article. Such returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal or payment of interest, rents, salaries, wages, premiums, annuities, compensations, remunera- tions, emoluments or other fixed or determinable gains, profits or income, except interest coupons payable to bearer. Information required to be furnished pursuant to paragraph four of subsection (a) of section six hundred seventy-four on a quarterly combined withholding and wage reporting return covering [the last] EACH calendar quarter of each year and relating to tax withheld on wages paid by an employer to an employee for [the full] EACH calendar [year] QUARTER, shall constitute the return of information required to be made under this section with respect to such wages. § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section 674 of the tax law, as amended by section 1 of subpart E of part VI of chap- ter 57 of the laws of 2009, is amended to read as follows: (A) All employers described in paragraph one of subsection (a) of section six hundred seventy-one of this part, including those whose wages paid are not sufficient to require the withholding of tax from the wages of any of their employees, all employers required to provide the wage reporting information for the employees described in subdivision one of section one hundred seventy-one-a of this chapter, and all employers liable for unemployment insurance contributions or for payments in lieu of such contributions pursuant to article eighteen of the labor law, shall file a quarterly combined withholding, wage report- ing and unemployment insurance return detailing the preceding calendar quarter's withholding tax transactions, such quarter's wage reporting information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such quarter's unemployment insurance contributions, and such other related information as the commissioner of taxation and finance or the commis- sioner of labor, as applicable, may prescribe. [In addition, the return covering the last calendar quarter of each year shall also include with- holding reconciliation information for such calendar year.] Such returns shall be filed no later than the last day of the month following the last day of each calendar quarter. § 3. Paragraph 3 of subsection (v) of section 685 of the tax law, as amended by chapter 477 of the laws of 1998, is amended to read as follows: (3) Failure to provide complete and correct employee withholding reconciliation information. In the case of a failure by an employer to provide complete and correct [annual] QUARTERLY withholding information relating to individual employees on a quarterly combined withholding, wage reporting and unemployment insurance return covering [the last] EACH calendar quarter of a year, such employer shall, unless it is shown that such failure is due to reasonable cause and not due to willful S. 7509--B 11 neglect, pay a penalty equal to the product of fifty dollars multiplied by the number of employees for whom such information is incomplete or incorrect; provided, however, that if the number of such employees cannot be determined from the quarterly combined withholding, wage reporting and unemployment insurance return, the commissioner may utilize any information in the commissioner's possession in making such determination. The total amount of the penalty imposed pursuant to this paragraph on an employer for any such failure for [the last] EACH calen- dar quarter of a year shall not exceed ten thousand dollars. § 4. This act shall take effect immediately and shall apply to calen- dar quarters beginning on or after January 1, 2019. PART J Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as amended by section 1 of part DD of chapter 407 of the laws of 1999, is amended to read as follows: (i) The receipts from every sale, OTHER THAN SALES FOR RESALE, of beer, wine or other alcoholic beverages or any other drink of any nature, or from every sale, OTHER THAN SALES FOR RESALE, of food and drink of any nature or of food alone, when sold in or by restaurants, taverns or other establishments in this state, or by caterers, including in the amount of such receipts any cover, minimum, entertainment or other charge made to patrons or customers (except those receipts taxed pursuant to subdivision (f) of this section): (1) in all instances where the sale is for consumption on the premises where sold; (2) in those instances where the vendor or any person whose services are arranged for by the vendor, after the delivery of the food or drink by or on behalf of the vendor for consumption off the premises of the vendor, serves or assists in serving, cooks, heats or provides other services with respect to the food or drink; and (3) in those instances where the sale is made through a vending machine that is activated by use of coin, currency, credit card or debit card (except the sale of drinks in a heated state made through such a vending machine) or is for consumption off the premises of the vendor, except where food (other than sandwiches) or drink or both are (A) sold in an unheated state and, (B) are of a type commonly sold for consump- tion off the premises and in the same form and condition, quantities and packaging, in establishments which are food stores other than those principally engaged in selling foods prepared and ready to be eaten. § 2. This act shall take effect June 1, 2018 and shall apply to sales made on and after such date. PART K Section 1. The tax law is amended by adding a new section 171-z to read as follows: § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING UNCLAIMED FUNDS. 1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED TO RELEASE TO THE COMPTROLLER INFORMATION REGARDING FIXED AND FINAL UNWARRANTED DEBTS OF TAXPAYERS FOR PURPOSES OF COLLECTING UNCLAIMED FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED DEBTS OWED BY TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX, INTER- S. 7509--B 12 EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND A WARRANT HAS NOT BEEN FILED; AND THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO- RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY, PARTNER, MEMBER, MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI- TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE STATE. THIS SECTION SHALL NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED THE STATE FROM UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW. 2. THE COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY TAXPAYER INFORMA- TION RECEIVED UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER OR STAFF OF THE DEPARTMENT OR STAFF OF THE DEPARTMENT OF AUDIT AND CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION. § 2. This act shall take effect immediately. PART L Intentionally Omitted PART M Intentionally Omitted PART N Intentionally Omitted PART O Intentionally Omitted PART P Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax law, as amended by section 1 of part L1 of chapter 109 of the laws of 2006, is amended to read as follows: (1) A resident taxpayer shall be allowed a credit as provided herein equal to the greater of one hundred dollars times the number of qualify- ing children of the taxpayer or the applicable percentage of the child tax credit allowed the taxpayer under section twenty-four of the inter- nal revenue code for the same taxable year for each qualifying child. Provided, however, in the case of a taxpayer whose federal adjusted gross income exceeds the applicable threshold amount set forth by section 24(b)(2) of the Internal Revenue Code, the credit shall only be equal to the applicable percentage of the child tax credit allowed the taxpayer under section 24 of the Internal Revenue Code for each qualify- ing child. For the purposes of this subsection, a qualifying child shall be a child who meets the definition of qualified child under section 24(c) of the internal revenue code and is at least four years of age. The applicable percentage shall be thirty-three percent. FOR PURPOSES OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL REVENUE CODE SHALL BE A REFERENCE TO SUCH SECTION AS IT EXISTED IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. S. 7509--B 13 § 2. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2018. PART Q Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as amended by section 1 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as amended by section 2 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; S. 7509--B 14 (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as amended by section 3 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 4. This act shall take effect immediately. PART R Section 1. Subdivision (c) of section 25-a of the labor law, as amended by section 1 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (c) A qualified employer shall be entitled to a tax credit equal to (1) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (2) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified S. 7509--B 15 employee is enrolled in high school full-time, and (3) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI- SION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full time. The tax credits shall be claimed by the qualified employer as specified in subdivision thirty-six of section two hundred ten-B and subsection (tt) of section six hundred six of the tax law. § 2. Subdivisions (d), (e) and (f) of section 25-a of the labor law, subdivisions (d) and (e) as amended by section 1 of subpart A of part N of chapter 59 of the laws of 2017 and subdivision (f) as amended by section 1 of part AA of chapter 56 of the laws of 2015, are amended to read as follows: (d) To participate in the program established under this section, an employer must submit an application (in a form prescribed by the commis- sioner) to the commissioner after January first, two thousand twelve but no later than November thirtieth, two thousand twelve for program one, after January first, two thousand fourteen but no later than November thirtieth, two thousand fourteen for program two, after January first, two thousand fifteen but no later than November thirtieth, two thousand fifteen for program three, after January first, two thousand sixteen but no later than November thirtieth, two thousand sixteen for program four, after January first, two thousand seventeen but no later than November thirtieth, two thousand seventeen for program five, after January first, two thousand eighteen but no later than November thirtieth, two thousand eighteen for program six, after January first, two thousand nineteen but no later than November thirtieth, two thousand nineteen for program seven, after January first, two thousand twenty but no later than Novem- ber thirtieth, two thousand twenty for program eight, after January first, two thousand twenty-one but no later than November thirtieth, two thousand twenty-one for program nine, and after January first, two thou- sand twenty-two but no later than November thirtieth, two thousand twen- ty-two for program ten. The qualified employees must start their employ- ment on or after January first, two thousand twelve but no later than December thirty-first, two thousand twelve for program one, on or after January first, two thousand fourteen but no later than December thirty- first, two thousand fourteen for program two, on or after January first, two thousand fifteen but no later than December thirty-first, two thou- sand fifteen for program three, on or after January first, two thousand sixteen but no later than December thirty-first, two thousand sixteen for program four, on or after January first, two thousand seventeen but no later than December thirty-first, two thousand seventeen for program five, on or after January first, two thousand eighteen but no later than December thirty-first, two thousand eighteen for program six, on or after January first, two thousand nineteen but no later than December thirty-first, two thousand nineteen for program seven, on or after Janu- ary first, two thousand twenty but no later than December thirty-first, two thousand twenty for program eight, on or after January first, two thousand twenty-one but no later than December thirty-first, two thou- S. 7509--B 16 sand twenty-one for program nine, and on or after January first, two thousand twenty-two but no later than December thirty-first, two thou- sand twenty-two for program ten. [The commissioner shall establish guidelines and criteria that specify requirements for employers to participate in the program including criteria for certifying qualified employees, ensuring that the process established will minimize any undue delay in issuing the certificate of eligibility. Any regulations that the commissioner determines are necessary may be adopted on an emergency basis notwithstanding anything to the contrary in section two hundred two of the state administrative procedure act. Such requirements may include the types of industries that the employers are engaged in. The commissioner may give preference to employers that are engaged in demand occupations or industries, or in regional growth sectors, including but not limited to those identified by the regional economic development councils, such as clean energy, healthcare, advanced manufacturing and conservation. In addition, the commissioner shall give preference to employers who offer advancement and employee benefit packages to the qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF TAXA- TION AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS OF EMPLOYERS THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE. (e) If, after reviewing the application submitted by an employer, the commissioner determines that such employer is eligible to participate in the program established under this section, the commissioner shall issue the employer a PRELIMINARY certificate of eligibility that establishes the employer as a qualified employer. The PRELIMINARY certificate of eligibility shall specify the maximum amount of tax credit that the employer [will] MAY be allowed to claim and the program year under which it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT THE EMPLOYER IS ALLOWED TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C) OF THIS SECTION. (f) The commissioner shall annually publish a report. Such report must contain the names and addresses of any employer issued a PRELIMINARY certificate of eligibility under this section, [and] the [maximum] amount of New York youth works tax credit allowed to the QUALIFIED employer as specified on [such] AN ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT AND ANY OTHER INFORMATION AS DETERMINED BY THE COMMISSIONER. § 3. Section 25-a of the labor law is amended by adding three new subdivisions (e-1), (e-2) and (e-3) to read as follows: (E-1)(1) TO RECEIVE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR BEFORE JANUARY THIRTY- FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY THE COMMISSIONER. THE REPORT MUST DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE COMMIS- SIONER SHALL ISSUE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT. SUCH CERTIFICATE SHALL INCLUDE, IN ADDITION TO ANY OTHER INFORMATION THE COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION: S. 7509--B 17 (I) THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE QUALIFIED EMPLOYER; (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD; (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED EMPLOYER IS ENTITLED FOR THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL FINAL CERTIFICATE IS ISSUED, WHICH ACTUAL AMOUNT CANNOT EXCEED THE AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS THAN SUCH AMOUNT; AND (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT. (E-2) IN DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL YEAR OF CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF SUBDIVISION (C) OF THIS SECTION. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT IS ISSUED. (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD- ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM- INARY CERTIFICATE OF ELIGIBILITY AND ANNUAL FINAL CERTIFICATE OF TAX CREDIT. SUCH REQUIREMENTS MAY INCLUDE THE TYPES OF INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN. THE COMMISSIONER MAY GIVE PREFERENCE TO EMPLOYERS THAT ARE ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING BUT NOT LIMITED TO THOSE IDENTIFIED BY THE REGIONAL ECONOMIC DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY, HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION. IN ADDITION, THE COMMISSIONER SHALL GIVE PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS. § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 2 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- S. 7509--B 18 fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA- GRAPH by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the quali- fied employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 4 of this act, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(i) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of S. 7509--B 19 section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-FIVE-A OF THE LABOR LAW. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM- PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 6. Paragraph (c) of subdivision 36 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may release the names and addresses of any taxpayer claiming this credit and the amount of the credit earned by the taxpayer. Provided, however, if a taxpayer claims this credit because it is a member of a limited liability company or a partner in a partnership, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 3 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional S. 7509--B 20 [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liabil- ity company or S corporation. For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 7 of this act, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(A) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY- S. 7509--B 21 FIVE-A OF THE LABOR LAW. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has [been certified by] RECEIVED ITS ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM the commissioner of labor as a qualified employer pursu- ant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liability company or S corporation. [For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends.] IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY- ER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law, as added by section 3 of part D of chapter 56 of the laws of 2011, is amended to read as follows: (3) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may release the names and addresses of any taxpayer claiming this credit and the amount of the credit earned by the taxpayer. Provided, however, if a taxpayer claims this credit because it is a member of a limited liabil- ity company, a partner in a partnership, or a shareholder in a subchap- ter S corporation, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 10. This act shall take effect immediately, provided however that (i) section one of this act shall apply to tax years beginning on or after January 1, 2018; (ii) sections four and seven of this act shall apply to tax years beginning on or after January 1, 2018 and before January 1, 2019; and (iii) sections two, three, five, six, eight, and nine of this act shall take effect January 1, 2019 and shall apply to tax years beginning on or after January 1, 2019. PART S Intentionally Omitted PART T S. 7509--B 22 Intentionally Omitted PART U Intentionally Omitted PART V Intentionally Omitted PART W Section 1. Subdivision (f) of section 1115 of the tax law, as amended by chapter 205 of the laws of 1968, is amended to read as follows: (f) (1) Services rendered by a veterinarian licensed and registered as required by the education law which constitute the practice of veteri- nary medicine as defined in said law, including hospitalization for which no separate boarding charge is made, shall not be subject to tax under paragraph (3) of subdivision (c) of section eleven hundred five, but the exemption allowed by this subdivision shall not apply to other services provided by a veterinarian to pets and other animals, includ- ing, but not limited to, boarding, grooming and clipping. Articles of tangible personal property designed for use in some manner relating to domestic animals or poultry, when sold by such a veterinarian, shall not be subject to tax under subdivision (a) of section eleven hundred five or under section eleven hundred ten. However, the sale of any such arti- cles of tangible personal property to a veterinarian shall not be deemed a sale for resale within the meaning of [pargraph] PARAGRAPH (4) of subdivision (b) of section eleven hundred one and shall not be exempt from retail sales tax. (2) DRUGS OR MEDICINE SOLD TO OR USED BY A VETERINARIAN FOR USE IN RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION TO LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO A PERSON QUALIFYING FOR THE EXEMPTION PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY. § 2. Subdivision (a) of section 1119 of the tax law, as amended by chapter 686 of the laws of 1986 and as further amended by section 15 of part GG of chapter 63 of the laws of 2000, is amended to read as follows: (a) Subject to the conditions and limitations provided for herein, a refund or credit shall be allowed for a tax paid pursuant to subdivision (a) of section eleven hundred five or section eleven hundred ten (1) on the sale or use of tangible personal property if the purchaser or user, in the performance of a contract, later incorporates that tangible personal property into real property located outside this state, (2) on the sale or use of tangible personal property purchased in bulk, or any portion thereof, which is stored and not used by the purchaser or user within this state if that property is subsequently reshipped by such purchaser or user to a point outside this state for use outside this state, (3) on the sale to or use by a contractor or subcontractor of tangible personal property if that property is used by him solely in the performance of a pre-existing lump sum or unit price construction contract, (4) on the sale or use within this state of tangible personal property, not purchased for resale, if the use of such property in this state is restricted to fabricating such property (including incorporat- S. 7509--B 23 ing it into or assembling it with other tangible personal property), processing, printing or imprinting such property and such property is then shipped to a point outside this state for use outside this state, [(5) on the sale to or use by a veterinarian of drugs or medicine if such drugs or medicine are used by such veterinarian in rendering services, which are exempt pursuant to subdivision (f) of section eleven hundred fifteen of this chapter, to livestock or poultry used in the production for sale of tangible personal property by farming or if such drugs or medicine are sold to a person qualifying for the exemption provided for in paragraph (6) of subdivision (a) of section eleven hundred fifteen of this chapter for use by such person on such livestock or poultry,] or (6) on the sale of tangible personal property purchased for use in constructing, expanding or rehabilitating industrial or commercial real property (other than property used or to be used exclu- sively by one or more registered vendors primarily engaged in the retail sale of tangible personal property) located in an area designated as an empire zone pursuant to article eighteen-B of the general municipal law, but only to the extent that such property becomes an integral component part of the real property. (For the purpose of clause (3) of the preced- ing sentence, the term "pre-existing lump sum or unit price construction contract" shall mean a contract for the construction of improvements to real property under which the amount payable to the contractor or subcontractor is fixed without regard to the costs incurred by him in the performance thereof, and which (i) was irrevocably entered into prior to the date of the enactment of this article or the enactment of a law increasing the rate of tax imposed under this article, or (ii) resulted from the acceptance by a governmental agency of a bid accompa- nied by a bond or other performance guaranty which was irrevocably submitted prior to such date.) Where the tax on the sale or use of such tangible personal property has been paid to the vendor, to qualify for such refund or credit, such tangible personal property must be incorpo- rated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was payable to the tax commission by the vendor pursuant to section eleven hundred thirty-seven. Where the tax on the sale or use of such tangible personal property was paid by the applicant for the credit or refund directly to the tax commission, to qualify for such refund or credit, such tangible personal property must be incorporated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was paya- ble to the tax commission by such applicant pursuant to this article. An application for a refund or credit pursuant to this section must be filed with such commission within the time provided by subdivision (a) of section eleven hundred thirty-nine. Such application shall be in such form as the tax commission may prescribe. Where an application for cred- it has been filed, the applicant may immediately take such credit on the return which is due coincident with or immediately subsequent to the time that he files his application for credit. However, the taking of the credit on the return shall be deemed to be part of the application for credit and shall be subject to the provisions in respect to applica- tions for credit in section eleven hundred thirty-nine as provided in subdivision (e) of such section. With respect to a sale or use described in clause (3) above where a pre-existing lump sum or unit price construction contract was irrevocably entered into prior to the date of S. 7509--B 24 the enactment of this article or the bid accompanied by the performance guaranty was irrevocably submitted to the governmental agency prior to such date, the purchaser or user shall be entitled to a refund or credit only of the amount by which the tax on such sale or use imposed under this article plus any tax imposed under the authority of article twen- ty-nine exceeds the amount computed by applying against such sale or use the local rate of tax, if any, in effect at the time such contract was entered into or such bid was submitted. In the case of the enactment of a law increasing the rate of tax imposed by this article, the purchaser or user shall be entitled only to a refund or credit of the amount by which the increased tax on such sale or use imposed under this article plus any tax imposed under the author- ity of article twenty-nine exceeds the amount computed by applying against such sale or use the state and local rates of tax in effect at the time such contract was entered into or such bid was submitted. § 3. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART X Section 1. Subdivision 1 of section 1131 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; and every operator of a hotel. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liabil- ity company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, OR HAS SO ACTED; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one OF THIS ARTICLE shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 2. Subdivision (a) of section 1133 of the tax law, as amended by chapter 621 of the laws of 1967, is amended to read as follows: (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI- SION AND IN section eleven hundred thirty-seven OF THIS PART, every person required to collect any tax imposed by this article shall be personally liable for the tax imposed, collected or required to be collected under this article. Any such person shall have the same right in respect to collecting the tax from his customer or in respect to nonpayment of the tax by the customer as if the tax were a part of the purchase price of the property or service, amusement charge or rent, as the case may be, and payable at the same time; provided, however, that the tax commission shall be joined as a party in any action or proceed- ing brought to collect the tax. (2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE: (I) THE COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A S. 7509--B 25 PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A MEMBER OF A LIMITED LIABILITY COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH LIMITED PARTNER OR MEMBER WAS NOT UNDER A DUTY TO ACT FOR SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR RELIEF TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS HAS ACTED ON BEHALF OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER OR WHO HAS A PAST-DUE LIABILITY, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER. (II) SUCH LIMITED PARTNER OR MEMBER MUST SUBMIT AN APPLICATION FOR RELIEF, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN ALL MATERIAL RESPECTS. PROVIDING MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH APPLICATION SHALL DISQUALIFY SUCH LIMITED PARTNER OR MEMBER FOR THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY AGREEMENT WITH THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING STRICT LIABILITY FOR THE TOTAL AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI- VISION. (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT- ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA- GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE COMMISSIONER, SHALL BE LIABLE FOR THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX LIABILITY OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY THAT REFLECTS SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY, WHICHEVER IS HIGHER. SUCH ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO AND INCLUDING THE DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SECTION ELEVEN HUNDRED FORTY-TWO OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA- NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF; AND (C) ANY PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT THE TIME SUCH PAYMENT WAS MADE. PROVIDED, HOWEVER, SUCH LIMITED PARTNER OR MEMBER SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS OR MEMBERS OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO ARE ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY SHALL NOT EXCEED THE TOTAL LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. § 3. This act shall take effect immediately. PART Y S. 7509--B 26 Intentionally Omitted PART Z Section 1. Section 2 of subpart R of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the expiration of the authorization to the county of Genesee to impose an additional one percent of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding any other provision of law to the contrary, the one percent increase in sales and compensating use taxes authorized for the county of Genesee until November 30, [2019] 2020 pursuant to clause (20) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, shall be divided in the same manner and proportion as the existing three percent sales and compensating use taxes in such county are divided. § 2. Section 2 of subpart Z of part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes by the county of Monroe, is amended to read as follows: § 2. Notwithstanding the provisions of subdivisions (b) and (c) of section 1262 and section 1262-g of the tax law, net collections, as such term is defined in section 1262 of the tax law, derived from the imposi- tion of sales and compensating use taxes by the county of Monroe at the additional rate of one percent as authorized pursuant to clause (25) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, which are in addition to the current net collections derived from the imposition of such taxes at the three percent rate authorized by the opening paragraph of section 1210 of the tax law, shall be distributed and allocated as follows: for the period of December 1, 2017 through November 30, [2019] 2020 in cash, five percent to the school districts in the area of the county outside the city of Rochester, three percent to the towns located within the county, one and one-quarter percent to the villages located within the county, and ninety and three-quarters percent to the city of Rochester and county of Monroe. The amount of the ninety and three-quarters percent to be distributed and allocated to the city of Rochester and county of Monroe shall be distributed and allocated to each so that the combined total distribution and allocation to each from the sales tax revenues pursuant to sections 1262 and 1262-g of the tax law and this section shall result in the same total amount being distributed and allocated to the city of Rochester and county of Monroe. The amount so distributed and allocated to the county shall be used for county purposes. The foregoing cash payments to the school districts shall be allocated on the basis of the enrolled public school pupils, thereof, as such term is used in subdivision (b) of section 1262 of the tax law, residing in the county of Monroe. The cash payments to the towns located within the county of Monroe shall be allocated on the basis of the ratio which the population of each town, exclusive of the population of any village or portion thereof located within a town, bears to the total population of the towns, exclusive of the population of the villages located within such towns. The cash payments to the villages located within the county shall be allocated on the basis of the ratio which the population of each village bears to the total population of the villages located within the county. The term population as used in this section S. 7509--B 27 shall have the same meaning as used in subdivision (b) of section 1262 of the tax law. § 3. Section 3 of subpart EE of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authorization of the county of Onondaga to impose an additional rate of sales and compen- sating use taxes, is amended to read as follows: § 3. Notwithstanding any contrary provision of law, net collections from the additional one percent rate of sales and compensating use taxes which may be imposed by the county of Onondaga during the period commencing December 1, 2018 and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall not be subject to any revenue distribution agreement entered into under subdi- vision (c) of section 1262 of the tax law, but shall be allocated and distributed or paid, at least quarterly, as follows: (i) 1.58% to the county of Onondaga for any county purpose; (ii) 97.79% to the city of Syracuse; and (iii) .63% to the school districts in accordance with subdivision (a) of section 1262 of the tax law. § 4. Section 2 of subpart GG of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authority of the county of Orange to impose an additional rate of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, net collections from any additional rate of sales and compensating use taxes which may be imposed by the county of Orange during the period commencing December 1, 2017, and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall be paid to the county of Orange and shall be used by such county solely for county purposes and shall not be subject to any revenue distribution agreement entered into pursuant to the authority of subdivision (c) of section 1262 of the tax law. § 5. This act shall take effect immediately and shall be deemed to have been in full force and effect on June 29, 2017. PART AA Intentionally Omitted PART BB Intentionally Omitted PART CC Intentionally Omitted PART DD Intentionally Omitted PART EE Section 1. Subdivision 1 of section 208 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 140 of the laws of 2008, is amended to read as follows: 1. In consideration of the franchise and in accordance with its fran- chise agreement, the franchised corporation shall remit to the state, S. 7509--B 28 each year, no later than April fifth, a franchise fee payment. The fran- chise fee shall be calculated and equal to the lesser of paragraph (a) or (b) of this subdivision as follows: (a) adjusted net income, includ- ing all sources of audited generally accepted accounting principles net income as of December thirty-first (i) plus the amount of depreciation and amortization for such year as set forth on the statement of cash flows (ii) less the amount received by the franchised corporation for capital expenditures and (iii) less principal payments made for the repayment of debt; or (b) operating cash which is defined as cash avail- able on December thirty-first (i) which excludes all restricted cash accounts, segregated accounts as per audited financial statements and cash on hand needed to fund the on-track pari-mutuel operations through the vault, (ii) less [forty-five] THREE HUNDRED SIXTY-FIVE days of oper- ating expenses pursuant to generally accepted accounting principles which shall be an average calculated by dividing the current year's annual budget by the number of days in such year and multiplying that number by [forty-five] THREE HUNDRED SIXTY-FIVE. § 2. Section 203 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008, is amended to read as follows: § 203. Right to hold race meetings and races. 1. Any corporation formed under the provisions of this article, if so claimed in its certificate of organization, and if it shall comply with all the provisions of this article, and any other corporation entitled to the benefits and privileges of this article as hereinafter provided, shall have the power and the right to hold one or more running race meetings in each year, and to hold, maintain and conduct running races at such meetings. At such running race meetings the corporation, or the owners of horses engaged in such races, or others who are not participants in the race, may contribute purses, prizes, premiums or stakes to be contested for, but no person or persons other than the owner or owners of a horse or horses contesting in a race shall have any pecuniary interest in a purse, prize, premium or stake contested for in such race, or be entitled to or receive any portion thereof after such race is finished, and the whole of such purse, prize, premium or stake shall be allotted in accordance with the terms and conditions of such race. Races conducted by a franchised corporation shall be permitted only between sunrise and sunset. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN- CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER SUNSET AT THE BELMONT PARK RACETRACK, ONLY ON THE MAIN TRACK IN ITS CURRENT CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK POST MERIDIAN, AND ONLY IF SUCH RACES OCCUR ON THURSDAYS, FRIDAYS OR SATURDAYS. THE FRANCHISED CORPORATION SHALL COORDINATE WITH A HARNESS RACING ASSOCIATION OR CORPORATION AUTHORIZED TO OPERATE IN WESTCHESTER COUNTY TO ENSURE THAT THE STARTING TIMES OF ALL SUCH RACES ARE STAG- GERED. 3. A track first licensed after January first, nineteen hundred nine- ty, shall not conduct the simulcasting of thoroughbred races within district one, in accordance with article ten of this chapter on days that a franchised corporation is not conducting a race meeting. In no event shall thoroughbred races conducted by a track first licensed after January first, nineteen hundred ninety be conducted after eight o'clock post meridian. § 3. An advisory committee shall be established by the governor comprised of individuals with demonstrated interest in the performance S. 7509--B 29 of thoroughbred and standardbred race horses to review the present structure, operations and funding of equine drug testing and research conducted pursuant to article nine of the racing, pari-mutuel wagering and breeding law. At a minimum, the advisory committee established pursuant to this section shall include among its membership: the presi- dent or executive director of a horsemen's organization representing at least fifty-one percent of the owners and trainers utilizing the facili- ties of the franchised corporation; the president or executive director of the statewide thoroughbred breeders association representing the majority of breeders of registered thoroughbreds in New York state; the president or executive director of a horsemen's organization represent- ing at least fifty-one percent of the owners and trainers utilizing a facility licensed to conduct racing pursuant to article three of the racing, pari-mutuel wagering and breeding law; the president or execu- tive director of the statewide Standardbred breeders association repres- enting the majority of breeders of registered Standardbreds in New York state; a representative of the franchised corporation established pursu- ant to section two hundred six of the racing, pari-mutuel wagering and breeding law; a representative of a corporation licensed to conduct racing pursuant to article two of the racing, pari-mutuel wagering and breeding law that is not a franchised corporation; two representatives from separate corporations licensed to conduct racing pursuant to arti- cle three of the racing, pari-mutuel wagering and breeding law; and a representative from a state college within this state with an approved equine science program. Recommendations shall be delivered to the temporary president of the Senate, speaker of the Assembly and Governor by December 1, 2018 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 4. This act shall take effect immediately; provided, however, that the amendments to section 203 of the racing, pari-mutuel wagering and breeding law made by section two of this act shall expire and be deemed repealed 4 years after the first night of racing conducted after sunset pursuant to this act; provided that the New York Racing Association shall notify the legislative bill drafting commission of the date of such night of racing in order that the commission may maintain an accu- rate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public offi- cers law. PART FF Section 1. Subdivision 2 of section 254 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph h to read as follows: H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND, BUT NOT IN EXCESS OF THREE PERCENT, TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED NEW YORK-BRED HORSES IN A MANNER THAT IS CONSISTENT WITH RULES ADOPTED BY THE FUND, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering and breeding law is amended by adding a new paragraph j to read as follows: J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND, BUT NOT IN EXCESS OF THREE PERCENT, TO SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED NEW YORK-BRED HORSES IN A MANNER THAT IS CONSISTENT WITH RULES ADOPTED BY S. 7509--B 30 THE FUND, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES. § 3. This act shall take effect immediately. PART GG Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [eighteen] NINETEEN; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least S. 7509--B 31 forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [eighteen] NINETEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [eighteen] NINETEEN, the amount used exclusively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twen- ty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [eighteen] NINETEEN and on any day regardless of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [eighteen] NINETEEN. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that have entered into a written agreement with such facility's representative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [eighteen] NINETEEN. This section shall super- sede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 S. 7509--B 32 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [eighteen] NINETEEN. Every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organ- ization as approved by the commission, one thousand eight or one thou- sand nine of this article shall be authorized to accept wagers and display the live full-card simulcast signal of thoroughbred tracks (which may include quarter horse or mixed meetings provided that all such wagering on such races shall be construed to be thoroughbred races) located in another state or foreign country, subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article: § 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [seventeen] EIGHTEEN, when a franchised corporation is conducting a race meeting within the state at Saratoga Race Course, every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. § 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: § 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2018] 2019; provided, however, that nothing contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. § 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section S. 7509--B 33 8 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: § 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2018] 2019; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets be presented for payment before April first of the year following the year of their purchase, less an amount which shall be established and retained by such fran- chised corporation of between twelve to seventeen per centum of the total deposits in pools resulting from on-track regular bets, and four- teen to twenty-one per centum of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five per centum of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six per centum of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the gaming commission. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five per centum of regular bets and four per centum of multiple bets plus twenty per centum of the breaks; for exotic wagers seven and one-half per centum plus twenty per centum of the breaks, and for super exotic bets seven and one-half per centum plus fifty per centum of the breaks. For the period June first, nineteen hundred ninety-five through September ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be three per centum and such tax on multiple wagers shall be two and one- half per centum, plus twenty per centum of the breaks. For the period September tenth, nineteen hundred ninety-nine through March thirty- first, two thousand one, such tax on all wagers shall be two and six- tenths per centum and for the period April first, two thousand one S. 7509--B 34 through December thirty-first, two thousand [eighteen] NINETEEN, such tax on all wagers shall be one and six-tenths per centum, plus, in each such period, twenty per centum of the breaks. Payment to the New York state thoroughbred breeding and development fund by such franchised corporation shall be one-half of one per centum of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three per centum of super exotic bets provided, however, that for the period September tenth, nineteen hundred ninety-nine through March thir- ty-first, two thousand one, such payment shall be six-tenths of one per centum of regular, multiple and exotic pools and for the period April first, two thousand one through December thirty-first, two thousand [eighteen] NINETEEN, such payment shall be seven-tenths of one per centum of such pools. § 10. This act shall take effect immediately. PART HH Intentionally Omitted PART II Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision b of section 1612 of the tax law are REPEALED and a new subparagraph (ii) is added to read as follows: (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA- TOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE: (A) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE ONE AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B) WHEN A VENDOR TRACK IS LOCATED WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-ONE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; AND THAT AT A VENDOR TRACK LOCATED WITHIN FORTY MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-SIX PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (C) WHEN A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK, AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, UPON THE EARLIER OF THE DESIGNATION OF ONE THOUSAND VIDEO LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH FOUR OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; S. 7509--B 35 (D) WHEN A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED PURSU- ANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, AT A RATE OF FORTY-FIVE PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (E) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN REGION ONE OR TWO OF DEVELOPMENT ZONE TWO, AS SUCH ZONE IS DEFINED IN SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, OR IS LOCATED WITHIN REGION SIX OF SUCH DEVELOPMENT ZONE TWO AND IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL COMMISSION. THE ADDITIONAL COMMISSION RECEIVED BY THE VENDOR TRACK SHALL BE CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE. (I) THE ADDITIONAL COMMISSION IS A PERCENTAGE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE TAX RATE ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN THE SAME REGION AS THE VENDOR TRACK FROM THE EDUCATION PERCENTAGE. THE EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUN- TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (II) THE ADDITIONAL COMMISSION PAID PURSUANT TO THIS SUBPARAGRAPH SHALL BE PAID TO A VENDOR TRACK NO LATER THAN SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT A VENDOR TRACK WHILE A GAMING FACILITY IN THE SAME REGION AS THAT VENDOR TRACK IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE ISSUED PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. (F) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A VENDOR TRACK IS LOCATED WITHIN FORTY MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8), SUCH VENDOR TRACK SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL HOLD HARMLESS COMMIS- SION. THE ADDITIONAL HOLD HARMLESS COMMISSION RECEIVED BY THE VENDOR TRACK SHALL BE CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE. (I) THE ADDITIONAL HOLD HARMLESS COMMISSION PAYABLE FOR ANY FISCAL YEAR SHALL BE AN AMOUNT EQUAL TO THE BASE VENDOR COMMISSION LESS THE CURRENT VENDOR FEE. THE BASE VENDOR COMMISSION IS CALCULATED BY ADDING TOGETHER THE VENDOR FEE, MARKETING ALLOWANCE, AND VENDOR CAPITAL AWARD, THAT THE FACILITY RECEIVED DURING THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING JUNE FIRST, TWO THOUSAND FIFTEEN. FOR THE PURPOSES OF THIS CALCULATION, A VENDOR FEE SHALL EXCLUDE ANY DISTRIBUTIONS REQUIRED BY PARAGRAPH TWO OF THIS SUBDIVISION. (II) THE ADDITIONAL HOLD HARMLESS COMMISSION PAID PURSUANT TO THIS SUBPARAGRAPH SHALL BE PAID TO A VENDOR TRACK NO LATER THAN SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL HOLD HARMLESS COMMIS- SION AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN AT A VENDOR TRACK WHILE THE NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. § 2703 (8) WITHIN FORTY MILES OF THAT VENDOR TRACK IS OPEN AND OPERATING. (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERA- TORS OF A VENDOR TRACK OR THE OPERATORS OF ANY OTHER VIDEO LOTTERY GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR- TY-FIRST, TWO THOUSAND SEVENTEEN SHALL DEPOSIT FROM THEIR VENDOR FEE S. 7509--B 36 INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF THE FIRST SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE USED EXCLUSIVELY FOR CAPITAL INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO ONE PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER UNTIL THE EARLIER OF THE DESIGNATION OF ONE THOUSAND VIDEO LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH FOUR OF SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR PROJECTS APPROVED BY THE COMMISSION TO IMPROVE THE FACILITIES OF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR MAINTAIN THE VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS, OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES, RETAIL FACILITIES, DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS AND AMENITIES CUSTOMARY TO A GAMING FACILITY, PROVIDED, HOWEVER, THE VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR UNREIMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM THE DIVESTITURE OF ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED THAT IF THE VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET TO A RELATED PARTY, SUCH VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY SHALL DEPOSIT AN AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES GAMING OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE VALUE OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI- TAL AWARDS SHALL BE RETURNED TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO AN AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI- TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI- TAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP TO TWO MILLION DOLLARS FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE AT THE VENDOR TRACK. (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE SHALL NOT BE INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES PAYA- BLE TO THE DIVISION'S VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR RACING SUPPORT PAYMENTS. (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR OF A VENDOR TRACK OR THE OPERATOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY SHALL FUND A MARKETING AND PROMOTION PROGRAM OUT OF THE S. 7509--B 37 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL MARKETING PLAN FOR THE REVIEW AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU- MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE COMMISSION. THE COMMISSION SHALL HAVE THE RIGHT TO REJECT ANY ADVERTISEMENT OR PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR INTERESTS OF THE LOTTERY OR ITS PROGRAMS. (J) NOTWITHSTANDING CLAUSE (G) OF THIS SUBPARAGRAPH, THE COMMISSION SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND WHO HAS MAINTAINED AT LEAST NINETY PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED IN CLAUSE (G) OF THIS SUBPARAGRAPH UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER EACH YEAR, FOR OPERATIONS. § 2. This act shall take effect immediately; provided, however, clause (J) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall expire and be deemed repealed June 29, 2019. PART JJ Section 1. Subsection (a) of section 614 of the tax law, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the New York standard deduction of a resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual [whose federal exemption amount is zero] WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred nine- ty-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty- nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. § 2. Section 612 of the tax law is amended by adding two new subsections (w) and (x) to read as follows: (W) ALIMONY MODIFICATIONS. (1) IN THE CASE OF APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA- BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) (A) THE TERM "ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. (B) THE TERM "APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS MADE UNDER AN ALIMONY OR SEPARATION INSTRUMENT (AS DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97) THAT WAS EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANY DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR BEFORE SUCH DATE AND S. 7509--B 38 MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION. (X) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTIONS ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 3. Subsection (a) of section 615 of the tax law, as amended by section 1 of part HH of chapter 57 of the laws of 2010, is amended to read as follows: (a) General. If federal taxable income of a resident individual is determined by itemizing deductions OR CLAIMING THE FEDERAL STANDARD DEDUCTION from his OR HER federal adjusted gross income, he OR SHE may elect to deduct his OR HER New York itemized deduction [in lieu of] OR CLAIM his OR HER New York standard deduction. The New York itemized deduction of a resident individual means the total amount of his OR HER deductions from federal adjusted gross income ALLOWED, other than feder- al deductions for personal exemptions, as provided in the laws of the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME- DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica- tions specified in this section, except as provided for under subsections (f) and (g) of this section. § 4. Subdivision (a) of section 11-1714 of the administrative code of the city of New York, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the city standard deduction of a city resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual [whose federal exemption amount is zero] WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred nine- ty-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty- nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. § 5. Section 11-1712 of the administrative code of the city of New York is amended by adding two new subdivisions (u) and (v) to read as follows: (U) ALIMONY MODIFICATIONS. (1) IN THE CASE OF APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA- BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. S. 7509--B 39 (2) (A) THE TERM "ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. (B) THE TERM "APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS MADE UNDER AN ALIMONY OR SEPARATION INSTRUMENT (AS DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97) THAT WAS EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANY DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR BEFORE SUCH DATE AND MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION. (V) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTION ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 6. Subdivision (a) of section 11-1715 of the administrative code of the city of New York, as amended by section 5 of part HH of chapter 57 of the laws of 2010, is amended to read as follows: (a) General. If federal taxable income of a city resident individual is determined by itemizing deductions OR CLAIMING THE FEDERAL STANDARD DEDUCTION from his OR HER federal adjusted gross income, such resident individual may elect to deduct his OR HER city itemized deduction [in lieu of] OR CLAIM his OR HER city standard deduction. The city itemized deduction of a city resident individual means the total amount of his OR HER deductions from federal adjusted gross income ALLOWED, other than federal deductions for personal exemptions, as provided in the laws of the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME- DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica- tions specified in this section, except as provided for under subdivi- sions (f) and (g) of this section. § 7. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART KK Section 1. Paragraph (b) of subdivision 6-a of section 208 of the tax law, as amended by section 5-a of part T of chapter 59 of the laws of 2015, is amended to read as follows: (b) "Exempt CFC income" means (I) EXCEPT WITH RESPECT TO ANY INCOME DEFINED IN SUBPARAGRAPHS (II) AND (III) OF THIS PARAGRAPH, the income required to be included in the taxpayer's federal gross income pursuant to subsection (a) of section 951 of the internal revenue code, received from a corporation that is conducting a unitary business with the taxpayer but is not included in a combined report with the taxpayer, AND (II) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SIX OF THIS SECTION, THE INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SUCH SECTION 951 OF S. 7509--B 40 THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AS ADJUSTED BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION, RECEIVED FROM A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, LESS, AND (III) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SIX OF THIS SECTION, THE INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE, WITHOUT REGARD TO THE DEDUCTION UNDER SECTION 250 OF THE INTERNAL REVEN- UE CODE, GENERATED BY A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, less, in the discretion of the commissioner, any interest deductions directly or indirectly attributable to that income. In lieu of subtracting from its exempt CFC income the amount of those interest deductions, the taxpayer may make a revocable election to reduce its total exempt CFC income by forty percent. If the taxpayer makes this election, the taxpayer must also make the elections provided for in paragraph (b) of subdivision six of this section and paragraph (c) of this subdivision. If the taxpayer subsequently revokes this election, the taxpayer must revoke the elections provided for in para- graph (b) of subdivision six of this section and paragraph (c) of this subdivision. A taxpayer which does not make this election because it has no exempt CFC income will not be precluded from making those other elections. § 1-a. Paragraph (b) of subdivision 5-a of section 11-652 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (b) "Exempt CFC income" means (I) EXCEPT WITH RESPECT TO ANY INCOME DEFINED IN SUBPARAGRAPHS (II) AND (III) OF THIS PARAGRAPH, the income required to be included in the taxpayer's federal gross income pursuant to subsection (a) of section nine hundred fifty-one of the internal revenue code, received from a corporation that is conducting a unitary business with the taxpayer but is not included in a combined report with the taxpayer, (II) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SIX OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW, THE INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AS ADJUSTED BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION, RECEIVED FROM A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, AND (III) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SIX OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW, THE INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE, WITHOUT REGARD TO THE DEDUCTION UNDER SECTION 250 OF THE INTERNAL REVENUE CODE, GENERATED BY A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, less, (IV) in the discretion of the commissioner of finance, any interest deductions directly or indirectly attributable to that income. In lieu of subtracting from its exempt CFC income the amount of those interest deductions, the taxpayer may make a revocable election to reduce its total exempt CFC income by forty percent. If the taxpayer makes this election, the taxpayer must also make the elections provided for in paragraph (b) of subdivision five of this section and paragraph (c) of this subdivision. If the taxpayer subsequently revokes this election, the taxpayer must revoke the elections provided for in paragraph (b) of subdivision five of this section and paragraph (c) of S. 7509--B 41 this subdivision. A taxpayer which does not make this election because it has no exempt CFC income will not be precluded from making those other elections. § 2. Subparagraph 6 of paragraph (a) of subdivision 9 of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (6) any amount treated as dividends pursuant to section seventy-eight of the internal revenue code TO THE EXTENT THAT SUCH DIVIDENDS ARE NOT DEDUCTED UNDER SUBPARAGRAPH (B)(II) OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 250 OF SUCH CODE; § 2-a. Subparagraph 2-a of paragraph (a) of subdivision 8 of section 11-652 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (2-a) any amounts treated as dividends pursuant to section seventy- eight of the internal revenue code, TO THE EXTENT THAT SUCH DIVIDENDS ARE NOT DEDUCTED UNDER SUBPARAGRAPH (B)(II) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION 250 OF SUCH CODE; § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding four new subparagraphs 23, 24, 25, and 26 to read as follow: (23) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE. (24) THE AMOUNT OF THE FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBPARA- GRAPH (B)(I) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION 250 OF THE INTERNAL REVENUE CODE. (25) THE AMOUNT DISALLOWED AS A DEDUCTION PURSUANT TO PARAGRAPH ONE OF SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE. (26) ANY AMOUNT DEDUCTED BY REASON OF A CARRY FORWARD OF DISALLOWED BUSINESS INTEREST PURSUANT TO PARAGRAPH TWO OF SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE. § 3-a. Subparagraph 19 of paragraph (b) of subdivision 8 of section 11-652 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended and four new subparagraphs 20, 21, 22, and 23 are added to read as follows: (19) the amount of any federal deduction for taxes imposed under arti- cle twenty-three of the tax law[.]; (20) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE; (21) THE AMOUNT OF THE FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBPARA- GRAPH (B)(I) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION 250 OF THE INTERNAL REVENUE CODE; (22) THE AMOUNT DISALLOWED AS A DEDUCTION PURSUANT TO PARAGRAPH ONE OF SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE; (23) ANY AMOUNT DEDUCTED BY REASON OF A CARRY FORWARD OF DISALLOWED BUSINESS INTEREST PURSUANT TO PARAGRAPH TWO OF SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE. § 4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as amended by section 13-a of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (1) If any taxpayer fails to file a declaration of estimated tax under article nine-A of this chapter, or fails to pay all or any part of an amount which is applied as an installment against such estimated tax, it shall be deemed to have made an underpayment of estimated tax. There shall be added to the tax for the taxable year an amount at the under- payment rate set by the commissioner pursuant to section one thousand S. 7509--B 42 ninety-six of this article, or if no rate is set, at the rate of seven and one-half percent per annum upon the amount of the underpayment for the period of the underpayment but not beyond the fifteenth day of the [third] FOURTH month following the close of the taxable year. PROVIDED, HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF SUCH TAX RELATED TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY OR INDI- RECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER OR THE FORTY PERCENT REDUCTION OF SUCH EXEMPT CFC INCOME IN LIEU OF INTEREST ATTRIBUTION IF THE ELECTION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SUCH SECTION IS MADE. The amount of the underpayment shall be, with respect to any installment of estimated tax computed on the basis of either the preceding year's tax or the second preceding year's tax, the excess of the amount required to be paid over the amount, if any, paid on or before the last day prescribed for such payment or, with respect to any other install- ment of estimated tax, the excess of the amount of the installment which would be required to be paid if the estimated tax were equal to ninety- one percent of the tax shown on the return for the taxable year (or if no return was filed, ninety-one percent of the tax for such year) over the amount, if any, of the installment paid on or before the last day prescribed for such payment. In any case in which there would be no underpayment if "eighty percent" were substituted for "ninety-one percent" each place it appears in this subsection, the addition to the tax shall be equal to seventy-five percent of the amount otherwise determined. No underpayment shall be deemed to exist with respect to a declaration or installment otherwise due on or after the termination of existence of the taxpayer. § 4-a. Subdivision 3 of section 11-676 of the administrative code of the city of new York, as amended by section 12 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 3. Failure to file declaration or underpayment of estimated tax. If any taxpayer fails to file a declaration of estimated tax under subchap- ter two, three or three-A of this chapter, or fails to pay all or any part of an amount which is applied as an installment against such esti- mated tax, it shall be deemed to have made an underpayment of estimated tax. There shall be added to the tax for the taxable year an amount at the underpayment rate set by the commissioner of finance pursuant to section 11-687 of this subchapter, or, if no rate is set, at the rate of seven and one-half percent per annum upon the amount of the underpayment for the period of the underpayment but not beyond the fifteenth day of the [third] FOURTH month following the close of the taxable year. PROVIDED, HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF SUCH TAX RELATED TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW OR THE FORTY PERCENT REDUCTION OF SUCH EXEMPT CFC INCOME IN LIEU OF INTEREST ATTRIBUTION IF THE ELECTION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW IS MADE. The amount of the underpayment shall be, with respect to any installment of estimated tax computed on the basis of the preceding year's tax, the excess of the amount required S. 7509--B 43 to be paid over the amount, if any, paid on or before the last day prescribed for such payment or, with respect to any other installment of estimated tax, the excess of the amount of the installment which would be required to be paid if the estimated tax were equal to ninety percent of the tax shown on the return for the taxable year (or if no return was filed, ninety percent of the tax for such year) over the amount, if any, of the installment paid on or before the last day prescribed for such payment. In any case in which there would be no underpayment if "eighty percent" were substituted for "ninety percent" each place it appears in this subdivision, the addition to the tax shall be equal to seventy-five percent of the amount otherwise determined. No underpayment shall be deemed to exist with respect to a declaration or installment otherwise due on or after the termination of existence of the taxpayer. § 4-b. Subparagraph 11 of paragraph (a) of subdivision 9 of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended and a new paragraph (u) is added to read as follows: (11) the amount deductible pursuant to [paragraph] PARAGRAPHS (j) AND (U) of this subdivision; and (U) A TAXPAYER SHALL BE ALLOWED A DEDUCTION IN COMPUTING ENTIRE NET INCOME FOR ANY FDIC PREMIUM PAID OR INCURRED BY THE TAXPAYER THAT IS DISALLOWED AS A DEDUCTION UNDER SUBSECTION (R) OF SECTION 162 OF THE INTERNAL REVENUE CODE. § 4-c. Subparagraph 10 of paragraph (a) of subdivision 8 of section 11-652 of the administrative code of the city of New York, as amended by section 1 of part D of chapter 60 of the laws of 2015, is amended and a new paragraph (u) is added to read as follows: (10) the amount deductible pursuant to [paragraph] PARAGRAPHS (j) AND (U) of this subdivision; (U) A TAXPAYER SHALL BE ALLOWED A DEDUCTION IN COMPUTING ENTIRE NET INCOME FOR ANY FDIC PREMIUM PAID OR INCURRED BY THE TAXPAYER THAT IS DISALLOWED AS A DEDUCTION UNDER SUBSECTION (R) OF SECTION 162 OF THE INTERNAL REVENUE CODE. § 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017. PART LL Intentionally omitted PART MM Intentionally omitted PART NN Section 1. The real property tax law is amended by adding a new section 431 to read as follows: § 431. SENIOR CAPPED REAL PROPERTY SCHOOL TAX RATE. 1. (A) RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY ONE OR MORE PERSONS, EACH OF WHOM IS SEVENTY YEARS OF AGE OR OVER ON OR BEFORE THE TAXABLE STATUS DATE IN TAXABLE YEAR TWO THOUSAND NINETEEN AND MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE, OR RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY HUSBAND AND WIFE, ONE OF WHOM IS SEVENTY YEARS OF AGE OR S. 7509--B 44 OVER AND MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE, SHALL BE ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE SET FORTH IN THIS SECTION, PROVIDED THE SCHOOL DISTRICT, AFTER PUBLIC HEARING, ADOPTS A RESOLUTION PROVIDING THEREFOR. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "CAPPED REAL PROPERTY SCHOOL TAX RATE" SHALL MEAN THE REAL PROPERTY SCHOOL TAX RATE ESTABLISHED ON ANY TAXABLE STATUS DATE IN CALENDAR YEAR TWO THOUSAND EIGHTEEN. (B) RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY ONE OR MORE PERSONS, EACH OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER ON OR BEFORE THE TAXABLE STATUS DATE IN TAX YEAR TWO THOUSAND TWENTY AND MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE, OR RESIDEN- TIAL REAL PROPERTY OWNED AND OCCUPIED BY HUSBAND AND WIFE, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER AND MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE, SHALL BE ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE SET FORTH IN THIS SECTION, PROVIDED THE SCHOOL DISTRICT, AFTER PUBLIC HEARING, ADOPTS A RESOLUTION PROVIDING THEREFOR. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "CAPPED REAL PROPERTY SCHOOL TAX RATE" SHALL MEAN THE REAL PROPERTY SCHOOL TAX RATE ESTABLISHED ON THE TAXABLE STATUS DATE SUBSEQUENT TO THE TAXABLE STATUS DATE ON WHICH AN ELIGIBLE PERSON ATTAINS THE AGE OF SIXTY-FIVE YEARS. 2. ANY PERSON ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE SHALL APPLY ANNUALLY FOR SUCH CAPPED RATE. SUCH APPLICATION SHALL BE MADE IN A MANNER AND FORM DETERMINED BY THE STATE BOARD AND SHALL REQUIRE PROOF OF THE APPLICANT'S AGE. SUCH APPLICATION SHALL BE FILED WITH THE LOCAL ASSESSOR ON OR BEFORE THE TAXABLE STATUS DATE FOR SUCH DISTRICT. 3. BEGINNING IN THE SECOND YEAR OF QUALIFYING FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE ESTABLISHED IN SUBDIVISION ONE OF THIS SECTION, THE RATE OF TAX OWED BY A PERSON OWNING REAL PROPERTY IN YEAR ONE OF QUALIFYING FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE WOULD BE REDUCED BY THE FOLLOWING SCHEDULE: YEAR TWO: TEN PERCENT YEAR THREE: TWENTY PERCENT YEAR FOUR: THIRTY PERCENT YEAR FIVE: FORTY PERCENT YEAR SIX: FIFTY PERCENT YEAR SEVEN: SIXTY PERCENT YEAR EIGHT: SEVENTY PERCENT YEAR NINE: EIGHTY PERCENT YEAR TEN: NINETY PERCENT YEAR ELEVEN AND THEREAFTER: ONE HUNDRED PERCENT 4. EVERY SCHOOL DISTRICT SHALL NOTIFY, OR CAUSE TO BE NOTIFIED, EACH PERSON OWNING RESIDENTIAL REAL PROPERTY IN THE SCHOOL DISTRICT OF THE PROVISIONS OF THIS SECTION. THE PROVISIONS OF THIS SUBDIVISION MAY BE MET BY A NOTICE SENT TO SUCH PERSONS IN SUBSTANTIALLY THE FOLLOWING FORM: "RESIDENTIAL REAL PROPERTY OWNED BY PERSONS SIXTY-FIVE YEARS OF AGE OR OLDER MAY BE ELIGIBLE FOR A CAPPED REAL PROPERTY SCHOOL TAX RATE. TO RECEIVE SUCH CAPPED RATE, ELIGIBLE OWNERS OF QUALIFYING PROPERTY MUST FILE AN APPLICATION WITH THEIR LOCAL ASSESSOR ON OR BEFORE THE APPLICA- BLE TAXABLE STATUS DATE. FOR FURTHER INFORMATION, PLEASE CONTACT YOUR LOCAL ASSESSOR." 5. A SCHOOL DISTRICT WHICH PROVIDES A CAPPED REAL PROPERTY SCHOOL TAX RATE FOR PERSONS SIXTY-FIVE YEARS OF AGE OR OVER PURSUANT TO THIS S. 7509--B 45 SECTION SHALL BE ELIGIBLE FOR REIMBURSEMENT BY THE DEPARTMENT OF EDUCA- TION, AS APPROVED BY THE COMMISSIONER OF EDUCATION, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE, FOR ONE HUNDRED PERCENT OF THE DIRECT COST TO SUCH SCHOOL DISTRICT RESULTING FROM THE IMPLEMENTATION OF THIS SECTION. SUCH DIRECT COST SHALL BE CALCULATED PURSUANT TO REGU- LATIONS OF THE COMMISSIONER OF EDUCATION, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE. A CLAIM FOR SUCH REIMBURSEMENT SHALL BE MADE BY SUCH SCHOOL DISTRICT IN A MANNER AND FORM PRESCRIBED BY THE COMMISSIONER OF EDUCATION. § 2. Paragraph 3 of subsection (n-1) of section 606 of the tax law, as added by section 1 of subpart B of part C of chapter 20 of the laws of 2015, is amended as follows: (3) Amount of credit. (a) For the two thousand sixteen taxable year (i) for a taxpayer residing in real property located within the metro- politan commuter transportation district (MCTD) and outside the city of New York, the amount of the credit shall be $130; (ii) for a taxpayer residing in real property located outside the MCTD, the amount of the credit shall be $185. (b) For the two thousand seventeen, two thousand eighteen and two thousand nineteen taxable years (i) For a taxpayer who owned and prima- rily resided in real property receiving the basic STAR exemption, the amount of the credit shall equal the STAR tax savings associated with such basic STAR exemption, multiplied by the following percentage: (A) for the two thousand seventeen taxable year: Qualified Gross Income Percentage Not over $75,000 28% Over $75,000 but not over $150,000 20.5% Over $150,000 but not over $200,000 13% Over $200,000 but not over $275,000 5.5% Over $275,000 No credit (B) for the two thousand eighteen taxable year: Qualified Gross Income Percentage Not over $75,000 60% Over $75,000 but not over $150,000 42.5% Over $150,000 but not over $200,000 25% Over $200,000 but not over $275,000 7.5% Over $275,000 No credit (C) for the two thousand nineteen taxable year AND THEREAFTER: Qualified Gross Income Percentage Not over $75,000 [85%] 100% Over $75,000 but not over $150,000 [60%] 75% Over $150,000 but not over $200,000 [35%] 43.75% Over $200,000 but not over $275,000 [10%] 12.5% Over $275,000 No credit (c) For a taxpayer who owned and primarily resided in real property receiving the enhanced STAR exemption, the amount of the credit shall equal the STAR tax savings associated with such enhanced STAR exemption, multiplied by the following percentage: Taxable Year Percentage two thousand seventeen 12% two thousand eighteen 26% two thousand nineteen AND THEREAFTER [34%] 42.5% (d) In no case may the amount of the credit allowed under this subsection exceed the school district taxes due with respect to the residence for that school year. S. 7509--B 46 § 3. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date. PART OO Section 1. Section 13 of part A of chapter 97 of the laws of 2011, amending the general municipal law and the education law relating to establishing limits upon school district and local government tax levies, as amended by section 18 of part A of chapter 20 of the laws of 2015, is amended to read as follows: § 13. This act shall take effect immediately; provided, however, that sections two through eleven of this act shall take effect July 1, 2011 and shall first apply to school district budgets and the budget adoption process for the 2012-13 school year; and shall continue to apply to school district budgets and the budget adoption process for any school year beginning in any calendar year during which this act is in effect; provided further, that if section 26 of part A of chapter 58 of the laws of 2011 shall not have taken effect on or before such date then section ten of this act shall take effect on the same date and in the same manner as such chapter of the laws of 2011, takes effect; provided further, that section one of this act shall first apply to the levy of taxes by local governments for the fiscal year that begins in 2012 and shall continue to apply to the levy of taxes by local governments for any fiscal year beginning in any calendar year during which this act is in effect[; provided, further, that this act shall remain in full force and effect at a minimum until and including June 15, 2020 and shall remain in effect thereafter only so long as the public emergency requir- ing the regulation and control of residential rents and evictions and all such laws providing for such regulation and control continue as provided in subdivision 3 of section 1 of the local emergency rent control act, sections 26-501, 26-502 and 26-520 of the administrative code of the city of New York, section 17 of chapter 576 of the laws of 1974 and subdivision 2 of section 1 of chapter 274 of the laws of 1946 constituting the emergency housing rent control law, and section 10 of chapter 555 of the laws of 1982, amending the general business law and the administrative code of the city of New York relating to conversions of residential property to cooperative or condominium ownership in the city of New York as such laws are continued by chapter 93 of the laws of 2011 and as such sections are amended from time to time]. § 2. This act shall take effect immediately. PART PP Section 1. Paragraph (b) of subdivision 1 of section 186-a of the tax law, as amended by section 4 of part Y of chapter 63 of the laws of 2000, is amended to read as follows: (b) a tax equal to (1) two and five-tenths percent on and after Janu- ary first, two thousand through December thirty-first, two thousand, two and forty-five one hundredths percent from January first, two thousand one through December thirty-first, two thousand one, two and four-tenths percent from January first, two thousand two through December thirty- first, two thousand two, two and twenty-five one hundredths percent from January first, two thousand three through December thirty-first, two thousand three, two and one hundred twenty-five one thousandths percent S. 7509--B 47 from January first, two thousand four through December thirty-first, two thousand four and two percent [commencing] FROM January first, two thou- sand five, THROUGH DECEMBER THIRTY-FIRST TWO THOUSAND EIGHTEEN, ONE AND FIVE-TENTHS PERCENT FROM JANUARY FIRST, TWO THOUSAND NINETEEN THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN, ONE PERCENT FROM JANUARY FIRST, TWO THOUSAND TWENTY THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY, FIVE-TENTHS OF A PERCENT FROM JANUARY FIRST, TWO THOUSAND TWEN- TY-ONE TO DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, AND ZERO PERCENT COMMENCING JANUARY FIRST, TWO THOUSAND TWENTY-TWO and thereafter of that portion of its gross income derived from the transportation, transmission or distribution of gas or electricity by means of conduits, mains, pipes, wires, lines or the like and (2) two and one-tenth percent from January first, two thousand through December thirty-first, two thousand, two percent from January first, two thousand one through December thirty-first, two thousand one, one and nine-tenths percent from January first, two thousand two through December thirty-first, two thousand two, eighty-five one hundredths of one percent from January first, two thousand three through December thirty-first, two thousand three, four-tenths of one percent from January first, two thousand four through December thirty-first, two thousand four and zero percent commencing January first, two thousand five of all of its other gross income, is hereby imposed upon every utility not taxed under paragraph (a) of this subdivision doing business in this state which is subject to the supervision of the state department of public service which has a gross income for the year ending December thirty-first in excess of five hundred dollars, except motor carriers or brokers subject to such super- vision under the public service law; and § 2. This act shall take effect immediately. PART QQ Section 1. Subdivisions 1 and 1-a of section 18-a of the public service law, subdivision 1 as amended by section 2 of part NN of chapter 59 of the laws of 2009 and subdivision 1-a as added by section 2 of part A of chapter 173 of the laws of 2013, are amended to read as follows: 1. All costs and expenses of the department and commission shall be paid pursuant to appropriation on the certification of the chairman of the department and upon the audit and warrant of the comptroller. The state treasury shall be reimbursed therefore by payments to be made thereto from all moneys collected pursuant to this chapter. [The] FOR STATE FISCAL YEARS BEGINNING PRIOR TO APRIL 1, 2019, THE total of such costs and expenses shall be borne by the public utility companies (including for the purposes of this section municipalities other than municipalities as defined in section eighty-nine-l of this chapter), corporations (including the power authority of the state of New York), and persons subject to the commission's regulation, to be assessed in the manner provided in subdivisions two, three and four of this section and section two hundred seventeen of this chapter. PROVIDED HOWEVER FOR THE STATE FISCAL YEAR THAT BEGINS ON APRIL FIRST, TWO THOUSAND NINETEEN, SUCH ASSESSMENT SHALL BE IN AN AMOUNT THAT IS FIFTY PERCENT OF THE AMOUNT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR OF THIS SECTION AND SECTION TWO HUNDRED SEVENTEEN OF THIS CHAPTER. PROVIDED FURTHER FOR STATE FISCAL YEARS THAT BEGIN ON AND AFTER APRIL FIRST, TWO THOUSAND TWENTY, THE AMOUNT OF SUCH ASSESSMENT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR OF THIS SECTION AND SECTION TWO HUNDRED SEVENTEEN OF THIS S. 7509--B 48 CHAPTER SHALL BE ZERO AND ALL COSTS OF THE DEPARTMENT AND COMMISSION SHALL BE PAID BY THE STATE TREASURY. 1-a. All costs and expenses of the department related to the depart- ment's responsibilities under section three-b of this chapter shall be paid pursuant to appropriation on the certification of the chairman of the department and upon the audit and warrant of the comptroller. For the state fiscal [year] YEARS beginning on April first, two thousand fourteen and [each state fiscal year thereafter] BEGINNING PRIOR TO APRIL FIRST, TWO THOUSAND TWENTY, payments are to be made from all moneys collected from the Long Island power authority pursuant to this section. The total of such costs and expenses shall be assessed on such authority in the manner provided in subdivisions two, three and four of this section. PROVIDED HOWEVER FOR THE STATE FISCAL YEAR THAT BEGINS ON APRIL FIRST, TWO THOUSAND NINETEEN, SUCH ASSESSMENT SHALL BE IN AN AMOUNT THAT IS FIFTY PERCENT OF THE AMOUNT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR OF THIS SECTION. PROVIDED FURTHER FOR STATE FISCAL YEARS THAT BEGIN ON AND AFTER APRIL FIRST, TWO THOUSAND TWENTY, THE AMOUNT OF SUCH ASSESSMENT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR OF THIS SECTION SHALL BE ZERO AND ALL COSTS OF THE DEPARTMENT AND COMMISSION SHALL BE PAID BY THE STATE TREASURY. § 2. This act shall take effect immediately. PART RR Section 1. Paragraph 3-a of subsection (c) of section 612 of the tax law, as amended by section 3 of part I of chapter 59 of the laws of 2015, is amended to read as follows: (3-a) Pensions and annuities received by an individual who has attained the age of fifty-nine and one-half, not otherwise excluded pursuant to paragraph three of this subsection, to the extent includible in gross income for federal income tax purposes, but not in excess of [twenty] TWENTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, THIRTY THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY, THIRTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, AND FORTY thousand dollars IN EACH SUBSEQUENT YEAR, which are periodic payments attribut- able to personal services performed by such individual prior to his retirement from employment, which arise (i) from an employer-employee relationship or (ii) from contributions to a retirement plan which are deductible for federal income tax purposes. However, the term "pensions and annuities" shall also include distributions received by an individ- ual who has attained the age of fifty-nine and one-half from an individ- ual retirement account or an individual retirement annuity, as defined in section four hundred eight of the internal revenue code, and distrib- utions received by an individual who has attained the age of fifty-nine and one-half from self-employed individual and owner-employee retirement plans which qualify under section four hundred one of the internal revenue code, whether or not the payments are periodic in nature. Never- theless, the term "pensions and annuities" shall not include any lump sum distribution, as defined in subparagraph (D) of paragraph four of subsection (e) of section four hundred two of the internal revenue code and taxed under section six hundred three of this article. Where a husband and wife file a joint state personal income tax return, the modification provided for in this paragraph shall be computed as if they were filing separate state personal income tax returns. Where a payment S. 7509--B 49 would otherwise come within the meaning of the term "pensions and annui- ties" as set forth in this paragraph, except that such individual is deceased, such payment shall, nevertheless, be treated as a pension or annuity for purposes of this paragraph if such payment is received by such individual's beneficiary. § 2. This act shall take effect immediately. PART SS Section 1. Section 52 of the legislative law is amended by adding a new subdivision 5 to read as follows: 5. ASSENT OF TWO-THIRDS. FOR ANY BILL THAT ENACTS OR INCREASES A TAX REVENUE, THE ASSENT OF TWO-THIRDS OF THE MEMBERS ELECTED TO EACH BRANCH OF THE LEGISLATURE SHALL BE REQUIRED FOR PASSAGE OF SUCH BILL. § 2. This act shall take effect immediately. PART TT Section 1. The state finance law is amended by adding a new article 17 to read as follows: ARTICLE 17 ANNUAL SPENDING GROWTH CAP ACT SECTION 244. DEFINITIONS. 245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP. 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY. § 244. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS, UNLESS OTHERWISE SPECIFIED: 1. "ANNUAL SPENDING GROWTH CAP" SHALL MEAN A PERCENTAGE DETERMINED BY ADDING THE INFLATION RATES FROM EACH OF THE THREE CALENDAR YEARS IMME- DIATELY PRIOR TO THE COMMENCEMENT OF A GIVEN FISCAL YEAR AND THEN DIVID- ING THAT SUM BY THREE. 2. "STATE OPERATING FUNDS SPENDING" SHALL MEAN ANNUAL DISBURSEMENTS OF ALL GOVERNMENTAL FUND TYPES INCLUDED IN THE CASH-BASIS FINANCIAL PLAN OF THE STATE, EXCLUDING DISBURSEMENTS FROM FEDERAL FUNDS AND CAPITAL PROJECT FUNDS. 3. "INFLATION RATE" SHALL MEAN THE PERCENTAGE CHANGE IN THE TWELVE- MONTH AVERAGE OF THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS OR ANY SUCCESSOR AGENCY FOR A GIVEN CALENDAR YEAR COMPARED TO THE PRIOR CALENDAR YEAR. 4. "EXECUTIVE BUDGET" SHALL MEAN THE BUDGET SUBMITTED ANNUALLY BY THE GOVERNOR PURSUANT TO SECTION ONE OF ARTICLE VII OF THE STATE CONSTITU- TION. 5. "STATE BUDGET AS ENACTED" SHALL MEAN THE BUDGET ACTED UPON BY THE LEGISLATURE IN A GIVEN FISCAL YEAR, AS SUBJECT TO SECTION FOUR OF ARTI- CLE VII OF THE STATE CONSTITUTION AND SECTION SEVEN OF ARTICLE IV OF THE STATE CONSTITUTION. 6. "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN, OR UNEXPECTED OCCURRENCE, OR COMBINATION OF CIRCUMSTANCES, INCLUDING BUT NOT LIMITED TO A NATURAL DISASTER, INVASION, TERRORIST ATTACK, OR ECONOMIC CALAMITY. § 245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP. 1. THERE IS HERE- BY ESTABLISHED AN ANNUAL SPENDING GROWTH CAP. 2. THE GOVERNOR SHALL NOT SUBMIT, AND THE LEGISLATURE SHALL NOT ACT UPON, A BUDGET THAT CONTAINS A PERCENTAGE INCREASE OVER THE PRIOR FISCAL YEAR IN STATE OPERATING FUNDS SPENDING WHICH EXCEEDS THE ANNUAL SPENDING GROWTH CAP. S. 7509--B 50 3. THE GOVERNOR SHALL CERTIFY IN WRITING THAT STATE OPERATING FUNDS SPENDING IN THE EXECUTIVE BUDGET DOES NOT EXCEED THE ANNUAL SPENDING GROWTH CAP. IF FINAL INFLATION RATE DATA FOR THE PRIOR CALENDAR YEAR IS NOT YET AVAILABLE AT THE TIME THE GOVERNOR SUBMITS HIS OR HER EXECUTIVE BUDGET, HE OR SHE SHALL FURNISH A REASONABLE ESTIMATE OF SUCH PRIOR CALENDAR YEAR INFLATION RATE. 4. THE COMPTROLLER SHALL PROVIDE, WITHIN FIVE DAYS OF ACTION BY THE LEGISLATURE UPON THE BUDGET, A DETERMINATION AS TO WHETHER THE STATE OPERATING FUNDS SPENDING AS SET FORTH IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH CAP. 5. IF THE COMPTROLLER FINDS THAT STATE OPERATING FUNDS SPENDING AS SET FORTH IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH CAP, THE GOVERNOR SHALL TAKE CORRECTIVE ACTION TO ENSURE THAT FUNDING IS LIMITED TO THE AMOUNT OF THE ANNUAL SPENDING CAP. § 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY. 1. UPON A FIND- ING OF AN EMERGENCY BY THE GOVERNOR, HE OR SHE MAY DECLARE AN EMERGENCY BY AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH DECLA- RATION. 2. BASED UPON SUCH DECLARATION, THE GOVERNOR MAY SUBMIT, AND THE LEGISLATURE MAY AUTHORIZE, BY A TWO-THIRDS SUPERMAJORITY, A BUDGET CONTAINING A PERCENTAGE INCREASE OVER THE PRIOR FISCAL YEAR IN STATE OPERATING FUNDS SPENDING THAT EXCEEDS THE ANNUAL SPENDING GROWTH CAP. § 2. Subdivision 2 of section 92-cc of the state finance law, as amended by section 12-a of part I of chapter 60 of the laws of 2015, is amended to read as follows: 2. Such fund shall have a maximum balance not to exceed [five] TEN per centum of the aggregate amount projected to be disbursed from the gener- al fund during the fiscal year immediately following the then-current fiscal year. At the request of the director of the budget, the state comptroller shall transfer monies to the rainy day reserve fund up to and including an amount equivalent to seventy-five one-hundredths of one per centum of the aggregate amount projected to be disbursed from the general fund during the then-current fiscal year, unless such transfer would increase the rainy day reserve fund to an amount in excess of five per centum of the aggregate amount projected to be disbursed from the general fund during the fiscal year immediately following the then-cur- rent fiscal year, in which event such transfer shall be limited to such amount as will increase the rainy day reserve fund to such five per centum limitation. § 3. This act shall take effect on the thirtieth day after it shall have become a law. PART UU Section 1. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) PRIVATE WATER UTILITY BILL RELIEF CREDIT. (1) GENERAL. AN INDI- VIDUAL TAXPAYER WHO IS SERVICED BY A PRIVATE WATER UTILITY, SERVING THE TOWNS OF HEMPSTEAD AND OYSTER BAY LOCATED IN THE COUNTY OF NASSAU, SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT OF ANY ANNUAL INCREASE OF SUCH TAXPAYER'S ANNUAL WATER BILL DIRECTLY ASCRIBABLE TO AN INCREASE IN PROPERTY TAXES PAID BY SUCH PRIVATE WATER UTILITY. (2) CERTIFICATION FOR CREDIT ALLOWANCE. THE COMMISSIONER SHALL DETER- MINE THE PROCEDURE FOR CERTIFICATION FOR THE CREDIT AUTHORIZED PURSUANT TO THIS SUBSECTION. S. 7509--B 51 § 2. The public service commission, in conjunction with affected municipal corporations located in the county of Nassau, shall conduct a feasibility study of the practicality of Jericho Water District, located in the town of Oyster Bay, supplying water to any current customers of American Water services. Such study shall examine the potential costs to the Jericho Water District of serving these customers, the potential costs to Jericho Water District of acquiring the rights to serve these customers, the potential new water rates as a result of such transfer, and any other information deemed relevant by the affected municipal corporations. On or before December 31, 2018, the public service commis- sion shall submit such feasibility study to the governor, temporary president of the senate, and speaker of the assembly. For purposes of this section, "municipal corporations" shall have the same meaning as such term is defined by section two of the general municipal law. § 3. This act shall take effect immediately; provided, however section one of this act shall apply to taxable years beginning on and after the first of January next succeeding the date on which it shall have become a law; provided, further, that this act shall expire and be deemed repealed December 31, 2021. PART VV 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 NINETEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN FOUR HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR PERCENT OF THE BUSINESS INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN FOUR HUNDRED THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) SIXTEEN THOUSAND DOLLARS, (2) SIX AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR HUNDRED THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS AND (3) TWENTY PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS; (C) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- SAND TWENTY, IF THE BUSINESS INCOME BASE IS NOT MORE THAN FOUR HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE TWO AND ONE-HALF PERCENT OF THE BUSINESS INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN FOUR HUNDRED THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) TEN THOUSAND DOLLARS, (2) SIX AND ONE- HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR HUNDRED THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS AND (3) THIRTY-TWO PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR S. 7509--B 52 HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED 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] 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 [thirteen] EIGHTEEN, an amount equal to [three and three- quarters] TEN 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 begin- ning after two thousand [fourteen] NINETEEN, and an amount equal to [five] 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 begin- ning after two thousand fifteen]. (B) IN THE CASE OF A TAXPAYER WHO IS A FARM 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 FARM BUSINESS, WHO OR WHICH HAS FARM INCOME AS DEFINED BY THE LAWS OF THE UNITED STATES, AN AMOUNT EQUAL TO TWENTY PERCENT OF THE NET ITEMS OF INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE TO SUCH FARM. THE TERM FARM BUSINESS SHALL MEAN A FARM BUSINESS THAT HAS NET FARM INCOME OF LESS THAN FIVE HUNDRED THOUSAND DOLLARS. (C) (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] FIVE HUNDRED thou- sand dollars; OR (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION THAT DURING THE TAXABLE YEAR HAS NEW YORK GROSS BUSI- NESS 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 FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARA- GRAPH, 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 TAXABLE YEAR. (D) 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 FIVE HUNDRED THOUSAND DOLLARS. § 3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- istrative code of the city of New York, as added by section 2 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: S. 7509--B 53 (35) (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] 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) IN THE CASE OF A TAXPAYER WHO IS A FARM 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 FARM BUSINESS, WHO OR WHICH HAS FARM INCOME AS DEFINED BY THE LAWS OF THE UNITED STATES, AN AMOUNT EQUAL TO TWENTY PERCENT OF THE NET ITEMS OF INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE TO SUCH FARM. THE TERM FARM BUSINESS SHALL MEAN A FARM BUSINESS THAT HAS NET FARM INCOME OF LESS THAN FIVE HUNDRED THOUSAND DOLLARS. (C) (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] FIVE HUNDRED thou- sand dollars; OR (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION THAT DURING THE TAXABLE YEAR HAS NEW YORK GROSS BUSI- NESS 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 FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARA- GRAPH, 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 THE TAX LAW, 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 THE TAX LAW FOR THE TAXABLE YEAR. (D) 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 FIVE HUNDRED THOUSAND DOLLARS. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019. PART WW Section 1. Subdivision 3 of section 425 of the real property tax law, as added by section 1 of part B of chapter 389 of the laws of 1997, paragraph (a) as amended by chapter 264 of the laws of 2000, paragraph (b-1) as added by section 1 of part FF of chapter 57 of the laws of S. 7509--B 54 2010, paragraph (d) as amended by chapter 564 of the laws of 2015, para- graph (e) as added by section 2 of part W of chapter 57 of the laws of 2008, and paragraph (f) as added by section 1 of part B of chapter 59 of the laws of 2012, is amended to read as follows: 3. Eligibility requirements. (a) Property use. To qualify for exemption pursuant to this section, the property must be a one, two or three family residence, a farm dwelling, SMALL BUSINESS or residential property held in condominium or cooperative form of ownership. If the property is not an eligible type of property, but a portion of the prop- erty is partially used by the owner as a primary residence, that portion which is so used shall be entitled to the exemption provided by this section; provided that in no event shall the exemption exceed the assessed value attributable to that portion. (b) Primary residence. The property must serve as the primary resi- dence of one or more of the owners thereof, UNLESS SUCH PROPERTY IS OWNED BY A SMALL BUSINESS AS DEFINED IN PARAGRAPH (G) OF THIS SUBDIVI- SION. (b-1) Income. For final assessment rolls to be used for the levy of taxes for the two thousand eleven-two thousand twelve school year and thereafter, the parcel's affiliated income may be no greater than five hundred thousand dollars, as determined by the commissioner of taxation and finance pursuant to section one hundred seventy-one-u of the tax law, in order to be eligible for the basic exemption authorized by this section. As used herein, the term "affiliated income" shall mean the combined income of all of the owners of the parcel who resided primarily thereon on the applicable taxable status date, and of any owners' spous- es residing primarily thereon. For exemptions on final assessment rolls to be used for the levy of taxes for the two thousand eleven-two thou- sand twelve school year, affiliated income shall be determined based upon the parties' incomes for the income tax year ending in two thousand nine. In each subsequent school year, the applicable income tax year shall be advanced by one year. The term "income" as used herein shall have the same meaning as in subdivision four of this section. (c) Trusts. If legal title to the property is held by one or more trustees, the beneficial owner or owners shall be deemed to own the property for purposes of this subdivision. (d) Farm dwellings not owned by the resident. (i) If legal title to the farm dwelling is held by an S-corporation or by a C-corporation, the exemption shall be granted if the property serves as the primary resi- dence of a shareholder of such corporation. (ii) If the legal title to the farm dwelling is held by a partnership, the exemption shall be granted if the property serves as the primary residence of one or more of the partners. (iii) If the legal title to the farm dwelling is held by a limited liability company, the exemption shall be granted if the property serves as the primary residence of one or more of the owners. (iv) Any information deemed necessary to establish shareholder, part- ner or owner status for eligibility purposes shall be considered confi- dential and exempt from the freedom of information law. (e) Dwellings owned by limited partnerships. (i) If legal title to a dwelling is held by a limited partnership, the exemption shall be grant- ed if the property serves as the primary residence of one or more of the partners, provided that the limited partnership which holds title to the property does not engage in any commercial activity, that the limited partnership was lawfully created to hold title solely for estate plan- ning and asset protection purposes, and that the partner or partners who S. 7509--B 55 primarily reside thereon personally pay all of the real property taxes and other costs associated with the property's ownership. (ii) Any information deemed necessary to establish partner status for eligibility purposes shall be considered confidential and exempt from the freedom of information law. (f) Compliance with state tax obligations. The property's eligibility for the STAR exemption must not be suspended pursuant to section one hundred seventy-one-y of the tax law due to the past-due state tax liabilities of one or more of its owners. Notwithstanding any provision of law to the contrary, where a property's eligibility for a STAR exemption has been suspended pursuant to such section, the following provisions shall be applicable: (i) The property shall be ineligible for a basic or enhanced STAR exemption effective with the next school year commencing after the issu- ance of notice by the department of the suspension of its eligibility for the STAR exemption, even if the notice was issued after the applica- ble taxable status date. If a STAR exemption has been granted to such a property on a tentative or final assessment roll, the assessor or other person having custody of that roll is hereby authorized and directed to immediately remove that STAR exemption from the roll. (ii) Any challenge to the factual or legal basis behind the suspension of a property's eligibility for a STAR exemption pursuant to section one hundred seventy-one-y of the tax law must be presented to the department in the manner prescribed by such section. Neither an assessor nor a board of assessment review has the authority to consider such a chal- lenge. (iii) The property shall remain ineligible for the STAR exemption until the department notifies the assessor that the suspension of its eligibility has been lifted. Once the assessor has been so notified, the exemption may be resumed on a prospective basis only, provided that the eligibility requirements of this section are otherwise satisfied. (iv) In the case of a cooperative apartment or mobile home receiving a STAR exemption pursuant to paragraph (k) or (l) of subdivision two of this section, a suspension of a STAR exemption due to a taxpayer's past- due state tax liabilities shall only apply to the STAR exemption on the cooperative apartment or mobile home owned, or deemed to be owned, by that taxpayer. (G) SMALL BUSINESSES. (I) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "SMALL BUSINESS" SHALL MEAN A SOLE PROPRIETOR, A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S-CORPORATION, THAT DURING THE TAXABLE YEAR EMPLOYS TWENTY PERSONS OR LESS AND HAS A GROSS BUSINESS INCOME AND/OR FARM INCOME OF LESS THAN THREE HUNDRED FIFTY THOUSAND DOLLARS ATTRIBUTABLE TO THE BUSINESS OR A NEW YORK CORPORATION THAT DURING THE TAXABLE YEAR EMPLOYS TWENTY PERSONS OR LESS AND HAS A BUSINESS INCOME BASE OF FIVE HUNDRED THOUSAND DOLLARS OR LESS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (A) 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 THE TAX LAW; AND (B) IN THE CASE OF A NEW YORK S-CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE APPORTIONMENT DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXABLE YEAR. (III) FOR PURPOSES OF THIS PARAGRAPH, THE TERM BUSINESS INCOME BASE SHALL MEAN IN THE CASE OF A NEW YORK CORPORATION, BUSINESS INCOME AS DEFINED IN SUBDIVISION EIGHT OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW. S. 7509--B 56 § 2. Clause (B) of subparagraph (vi) of paragraph (b) of subdivision 2 of section 425 of the real property tax law, as added by section 1 of part D-1 of chapter 57 of the laws of 2007, is amended to read as follows: (B) The base figure for the basic STAR exemption shall be thirty thou- sand dollars. IN THE CASE OF A SMALL BUSINESS AS DEFINED IN PARAGRAPH (G) OF SUBDIVISION THREE OF THIS SECTION, THE BASE FIGURE FOR THE BASIC STAR EXEMPTION SHALL BE: (I) TEN THOUSAND DOLLARS IN THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR; (II) TWENTY THOUSAND DOLLARS IN THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL YEAR; AND (III) THIRTY THOUSAND DOLLARS IN THE TWO THOUSAND TWENTY-ONE--TWO THOU- SAND TWENTY-TWO SCHOOL YEAR AND THEREAFTER. § 3. This act shall take effect immediately and shall apply to all taxable years beginning on and after January 1, 2019. PART XX Section 1. Section 38 of the tax law, as added by section 1 of part EE of chapter 59 of the laws of 2013, is renumbered section 44 and subdivi- sions (b) and (c) are amended to read as follows: (b) An eligible employer is a corporation (including a New York S corporation), a sole proprietorship, a limited liability company or a partnership. [An] FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN, AN eligible employee is an individual who is (i) employed by an eligible employer in New York state, (ii) paid at the minimum wage rate as defined in article nineteen of the labor law during the taxable year by the eligible employer, (iii) between the ages of sixteen and nineteen during the period in which he or she is paid at such minimum wage rate by the eligible employer, and (iv) a student during the period in which he or she is paid at such minimum wage rate by the taxpayer. FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, AN ELIGIBLE EMPLOYEE IS AN INDIVIDUAL WHO IS (I) EMPLOYED BY AN ELIGIBLE EMPLOYER IN NEW YORK STATE, (II) PAID AT A RATE THAT DOES NOT EXCEED THE MINIMUM WAGE RATE AS DEFINED IN ARTICLE NINETEEN OF THE LABOR LAW PLUS FIFTY CENTS DURING THE TAXABLE YEAR BY THE ELIGIBLE EMPLOYER, (III) BETWEEN THE AGES OF SIXTEEN AND NINETEEN DURING THE PERIOD IN WHICH HE OR SHE IS PAID AT SUCH RATE THAT DOES NOT EXCEED SUCH MINIMUM WAGE RATE PLUS FIFTY CENTS BY THE ELIGIBLE EMPLOYER, AND (IV) A STUDENT DURING THE PERIOD IN WHICH HE OR SHE IS PAID AT SUCH RATE THAT DOES NOT EXCEED SUCH MINIMUM WAGE RATE PLUS FIFTY CENTS BY THE TAXPAYER. (c) For taxable years beginning on or after January first, two thou- sand fourteen and before January first, two thousand fifteen, the amount of the credit allowed under this section shall be equal to the product of the total number of hours worked during the taxable year by eligible employees for which they were paid at the minimum wage rate as defined in article nineteen of the labor law and [seventy five] SEVENTY-FIVE cents. For taxable years beginning on or after January first, two thou- sand fifteen and before January first, two thousand sixteen, the amount of the credit allowed under this section shall be equal to the product of the total number of hours during the taxable year worked by eligible employees for which they were paid at such minimum wage rate and one dollar and thirty-one cents. For taxable years beginning on or after January first, two thousand sixteen and before January first, two thou- sand [nineteen] EIGHTEEN, the amount of the credit allowed under this section shall be equal to the product of the total number of hours S. 7509--B 57 during the taxable year worked by eligible employees for which they were paid at such minimum wage rate and one dollar and thirty-five cents. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE PRODUCT OF THE TOTAL NUMBER OF HOURS DURING THE TAXABLE YEAR WORKED BY ELIGIBLE EMPLOY- EES FOR WHICH THEY WERE PAID AT A RATE THAT DOES NOT EXCEED SUCH MINIMUM WAGE RATE PLUS FIFTY CENTS AND ONE DOLLAR AND THIRTY-FIVE CENTS. Provided, however, if the federal minimum wage established by federal law pursuant to 29 U.S.C. section 206 or its successors is increased above eighty-five percent of the minimum wage in article nineteen of the labor law, the dollar amounts in this subdivision shall be reduced to the difference between the minimum wage in article nineteen of the labor law and the federal minimum wage. Such reduction would take effect on the date that employers are required to pay such federal minimum wage. § 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019. PART YY Section 1. Subdivision (b) of section 38 of the tax law, as added by section 1 of part EE of chapter 59 of the laws of 2013, is amended to read as follows: (b) An eligible employer is a corporation (including a New York S corporation), a sole proprietorship, a limited liability company or a partnership. An eligible employee is an individual who is (i) employed by an eligible employer in New York state, (ii) paid at the minimum wage rate as defined in article nineteen of the labor law during the taxable year by the eligible employer, (iii) between the ages of sixteen and nineteen during the period in which he or she is paid at such minimum wage rate by the eligible employer, [and] (iv) a student during the period in which he or she is paid at such minimum wage rate by the taxpayer, AND (V) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (III) AND (IV) OF THIS SUBDIVISION, AN ELIGIBLE EMPLOYEE SHALL ALSO MEAN ANY EMPLOYEE WHO MEETS THE CRITERIA SET FORTH IN PARAGRAPHS (I) AND (II) OF THIS SUBDIVISION WHO IS TEMPORARILY EMPLOYED FOR A PERIOD OF NINETY DAYS OR LESS IN A CALENDAR YEAR; PROVIDED, HOWEVER, THAT THE PROVISIONS OF THIS PARAGRAPH SHALL BE APPLICABLE TO TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND NINETEEN. § 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019. PART ZZ Section 1. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) ANY INCOME, GAIN, LOSS AND DEDUCTION, TO THE EXTENT IT IS INCLUDED IN FEDERAL ADJUSTED GROSS INCOME AND IS, COMBINED, LESS THAN ZERO, OF AN INDIVIDUAL OR TRUST FROM A QUALIFIED PASS-THROUGH MANUFAC- TURER, AS DEFINED IN PARAGRAPH FORTY-FOUR OF SUBSECTION (C) OF THIS SECTION. § 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 and a new paragraph 44 is added to read as follows: (39) In the case of a taxpayer who is a small business who has busi- ness income and/or farm income as defined in the laws of the United S. 7509--B 58 States, an amount equal to three 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 attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years begin- ning 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. For the purposes of this paragraph, the term small business shall mean 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. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM SMALL BUSINESS SHALL EXCLUDE ANY BUSINESS THAT IS A QUALIFIED PASS-THROUGH MANUFACTURER, AS DEFINED IN PARAGRAPH FORTY-FOUR OF THIS SUBSECTION FOR THE CURRENT TAX YEAR. (44) (A) ANY INCOME, GAIN, LOSS AND DEDUCTION, TO THE EXTENT INCLUDED FEDERAL ADJUSTED GROSS INCOME AND IS, COMBINED, GREATER THAN ZERO, OF AN INDIVIDUAL OR TRUST FROM A QUALIFIED PASS-THROUGH MANUFACTURER. INCOME FROM A QUALIFIED PASS-THROUGH MANUFACTURER SHALL NOT INCLUDE AN AMOUNT REPRESENTING REASONABLE COMPENSATION FOR AN INDIVIDUAL CONTROLLING TEN PERCENT OR MORE OF THE QUALIFIED BUSINESS OR ENTITY. (B) THE QUALIFIED PASS-THROUGH MANUFACTURER MAY BE ORGANIZED AS A SOLE PROPRIETORSHIP, A PARTNERSHIP, A LIMITED LIABILITY COMPANY ELECTING TO BE TREATED AS A PARTNERSHIP OR SOLE PROPRIETORSHIP, OR AN S CORPORATION. (C) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM QUALIFIED PASS- THROUGH MANUFACTURER SHALL MEAN A BUSINESS THAT IS A QUALIFIED NEW YORK MANUFACTURER, AS DEFINED BY SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF SUBDI- VISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER, EXCEPT THAT THE TERM "GROSS RECEIPTS" SHALL BE REPLACED BY "BUSINESS RECEIPTS" IN DETER- MINING WHETHER THE BUSINESS IS "PRINCIPALLY ENGAGED" IN MANUFACTURING. A QUALIFIED PASS-THROUGH MANUFACTURER SHALL NOT INCLUDE A BUSINESS THAT IS CURRENTLY PARTICIPATING IN THE START-UP NY PROGRAM. § 3. Paragraph 2 of subsection (a) of section 606 of the tax law is amended by adding a new subparagraph (B-1) to read as follows: (B-1) PROPERTY PLACED IN SERVICE DURING THE TAX YEAR THAT IS OTHERWISE ELIGIBLE FOR THE INVESTMENT TAX CREDIT DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, WILL NOT BE ELIGIBLE FOR THE INVESTMENT TAX CREDIT IF THE USE OF THE PROPERTY IS BY A QUALIFIED PASS-THROUGH MANUFACTURER, AS DEFINED IN PARAGRAPH FORTY-FOUR OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THIS ARTICLE FOR THE CURRENT TAX YEAR. § 4. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2019. PART AAA Section 1. The real property tax law is amended by adding a new section 431 to read as follows: § 431. PUBLIC UTILITY SECURITY CAMERA OR DEVICE; EXEMPTION. 1. FOR PURPOSES OF THIS SECTION, THE TERM "PUBLIC UTILITY" SHALL MEAN A PUBLIC SERVICE CORPORATION, OTHER ELECTRIC SERVICE PROVIDER, FIBER OPTICS, TELEVISION CABLE, OR ANY OTHER TELECOMMUNICATION COMPANY SUBJECT TO THE JURISDICTION OF THE DEPARTMENT OF PUBLIC SERVICE. S. 7509--B 59 2. ANY CAMERA OR INTERRELATED DEVICES OR APPURTENANCES INSTALLED ON OR OTHERWISE UTILIZING PROPERTY THAT A PUBLIC UTILITY ASSESSED AN AD VALO- REM TAX, OR THAT SUCH UTILITY CONTRIBUTES TO A PAYMENT IN LIEU OF TAXES AGREEMENT, WHETHER OR NOT SUCH CAMERA, INTERRELATED DEVICES OR APPURTE- NANCES ARE OWNED BY THE PUBLIC UTILITY, AND INSTALLED FOR THE PURPOSES OF PROVIDING ANY POLICE FORCE OR PUBLIC SECURITY OFFICE ACCESS TO REAL TIME OR RECORDED INFORMATION, SHALL BE EXEMPT FROM REAL PROPERTY OR OTHER AD VALOREM TAXES, LEVIES AND ASSESSMENTS OR PAYMENTS IN LIEU OF TAXES CONTRIBUTIONS. 3. THE OFFICE OF REAL PROPERTY TAX SERVICES IS HEREBY AUTHORIZED AND DIRECTED TO PROMULGATE RULES AND REGULATIONS NECESSARY FOR THE IMPLEMEN- TATION OF THIS SECTION. § 2. This act shall take effect immediately and shall apply to assess- ment rolls prepared on the basis of taxable status dates occurring on or after such date; provided, however, that the office of real property tax services shall promulgate rules and regulations necessary to effectuate this act prior to such effective date. PART BBB Section 1. Declaration of policy. The people of this state have a vital interest in the maintenance and preservation of cemetery corpo- rations to prevent them from becoming a burden upon local governments and the community. The preservation of cemetery funds is vital to the long-term maintenance and preservation of these burial grounds to prevent abandonment and dilapidation. In order to preserve this order, and the uniqueness of cemetery corporations, clarifications of cemetery sales tax collections are necessary. § 2. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 7-a to read as follows: (7-A) TANGIBLE PERSONAL PROPERTY AND SERVICES SOLD BY A CEMETERY FOR THE EXCLUSIVE USE ON THE GROUNDS AND IN THE BUILDINGS OF THE CEMETERY CORPORATION INCLUDING BUT NOT LIMITED TO THE ADDITIONAL SERVICES PROVIDED BY A CEMETERY AS DEFINED IN PARAGRAPH (B) OF SECTION FIFTEEN HUNDRED NINE OF THE NOT-FOR-PROFIT CORPORATION LAW AND FOR THE MAINTE- NANCE AND PRESERVATION OF LOTS, PLOTS AND PARTS THEREOF. § 3. Subdivision (a) of section 1116 of the tax law is amended by adding a new paragraph 10 to read as follows: (10) A CEMETERY CORPORATION, AS DEFINED IN PARAGRAPH (A) OF SECTION FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW, INCLUDING BUT NOT LIMITED TO THOSE CEMETERIES REGULATED BY THE RELIGIOUS CORPORATIONS LAW WHERE IT IS THE PURCHASER, USER, OR CONSUMER, OR WHERE IT IS THE VENDOR OF SERVICES OR PROPERTY EXCLUSIVELY TO BE USED ON THE GROUNDS OR BUILDINGS OF THE CORPORATION. § 4. The tax law is amended by adding a new section 1149 to read as follows: § 1149. AMNESTY PROGRAM. (A) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO THE CONTRARY, THERE IS HEREBY ESTABLISHED AN AMNESTY PROGRAM AS DESCRIBED HEREIN, TO BE ADMINISTERED BY THE COMMISSIONER, TO BE EFFECTIVE FOR THE PERIOD AS PRESCRIBED BY SUCH COMMISSIONER, FOR ALL ELIGIBLE TAXPAYERS AS DESCRIBED HEREIN, OWING ANY TAX OR SURCHARGE IMPOSED OR FORMERLY IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS ARTICLE, AND ADMINISTERED BY SUCH COMMISSIONER. (B) SUCH AMNESTY PROGRAM SHALL APPLY TO TAX LIABILITIES FOR THE TAXES SET FORTH IN SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS S. 7509--B 60 ARTICLE FOR TAXABLE PERIODS ENDING OR TRANSACTIONS OR USES OCCURRING ON OR BEFORE DECEMBER THIRTY FIRST, TWO THOUSAND EIGHTEEN. (C) FOR PURPOSES OF THE AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION, AN ELIGIBLE TAXPAYER IS A CEMETERY CORPORATION AS DEFINED BY PARAGRAPH (A) OF SECTION FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW WHO OR WHICH HAS A TAX LIABILITY WITH REGARD TO ONE OR MORE OF THE DESIGNATED TAXES FOR THE PERIOD OF TIME DESCRIBED IN SUBDI- VISION (B) OF THIS SECTION. (D) THE AMNESTY PROGRAM ESTABLISHED HEREIN SHALL PROVIDE, THAT UPON APPLICATION, INCLUDING APPLICABLE RETURNS, WHICH APPLICATION AND RETURNS SHALL BE IN SUCH FORM AND SUBMITTED IN SUCH MANNER AS PRESCRIBED BY THE COMMISSIONER, BY AN ELIGIBLE TAXPAYER, AND UPON PAYMENT IN SUCH FORM AND IN SUCH MANNER AS PRESCRIBED BY SUCH COMMISSIONER, WHICH PAYMENT SHALL EITHER ACCOMPANY SUCH APPLICATION OR BE MADE WITHIN THE TIME STATED ON A BILL ISSUED BY SUCH COMMISSIONER TO SUCH TAXPAYER, OF THE AMOUNT OF A TAX LIABILITY UNDER ONE OR MORE OF THE DESIGNATED TAXES WITH RESPECT TO WHICH AMNESTY IS SOUGHT, SUCH COMMISSIONER SHALL WAIVE ANY APPLICABLE PENALTIES AND INTEREST (INCLUDING THE ADDITIONAL RATE OF INTEREST PRESCRIBED UNDER SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART). IN ADDITION, NO CIVIL, ADMINISTRATIVE OR CRIMINAL ACTION OR PROCEEDING SHALL BE BROUGHT AGAINST SUCH AN ELIGIBLE TAXPAYER RELATING TO THE TAX LIABILITY COVERED BY SUCH WAIVER. FAILURE TO PAY ALL SUCH TAXES BY THE LATER OF MARCH FIFTEENTH, TWO THOUSAND NINETEEN, OR THE DATE PRESCRIBED THEREFOR ON A BILL ISSUED BY SUCH COMMISSIONER, SHALL INVALIDATE ANY AMNESTY GRANTED PURSUANT TO THE AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION. (E) AMNESTY TAX RETURN FORMS SHALL BE IN A FORM, CONTAIN SUCH INFORMA- TION AND BE SUBMITTED AS PRESCRIBED BY THE COMMISSIONER AND SHALL PROVIDE FOR SPECIFICATIONS BY THE APPLICANT OF THE TAX LIABILITY WITH RESPECT TO WHICH AMNESTY IS SOUGHT. THE APPLICANT MUST ALSO PROVIDE SUCH ADDITIONAL INFORMATION AS IS REQUIRED BY SUCH COMMISSIONER. AMNESTY SHALL BE GRANTED ONLY WITH RESPECT TO THE TAX LIABILITIES SPECIFIED BY THE TAXPAYER ON SUCH FORMS. ANY RETURN OR REPORT FILED UNDER THE AMNESTY PROGRAM ESTABLISHED HEREIN IS SUBJECT TO VERIFICATION AND ASSESSMENT AS PROVIDED BY STATUTE. IF THE APPLICANT FILES A FALSE OR FRAUDULENT TAX RETURN OR REPORT, OR ATTEMPTS IN ANY MANNER TO DEFEAT OR EVADE A TAX UNDER THE AMNESTY PROGRAM, AMNESTY SHALL BE DENIED OR RESCINDED. (F) WITH RESPECT TO ANY EXISTING INSTALLMENT PAYMENT AGREEMENT OF AN ELIGIBLE TAXPAYER, WHERE SUCH AGREEMENT APPLIES TO A TAX LIABILITY WITH RESPECT TO WHICH AMNESTY IS SOUGHT BY SUCH TAXPAYER, NOTWITHSTANDING ANY TERMS OF SUCH AGREEMENT TO THE CONTRARY, SUCH TAXPAYER, AS A CONDITION OF RECEIVING AMNESTY, MUST PAY ANY SUCH LIABILITY IN FULL BY THE LATER OF THE LAST DAY OF THE PRESCRIBED AMNESTY PERIOD, OR THE DATE PRESCRIBED THEREFOR ON A BILL ISSUED BY THE COMMISSIONER. (G) THE COMMISSIONER MAY PROMULGATE REGULATIONS, ISSUE FORMS AND INSTRUCTIONS AND TAKE ANY AND ALL OTHER ACTIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF THE AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION. SUCH COMMISSIONER SHALL PUBLICIZE THE AMNESTY PROGRAM PROVIDED FOR IN THIS SECTION SO AS TO MAXIMIZE PUBLIC AWARENESS OF AND PARTICIPATION IN SUCH PROGRAM. § 5. On or before February 28, 2021, the commissioner of taxation and finance shall submit a report to the chairperson of the assembly ways and means committee, the ranking minority member of the assembly ways and means committee, the chairperson of the senate finance committee, the ranking minority member of the senate finance committee and the director of the budget regarding the amnesty program established pursu- S. 7509--B 61 ant to this act. The report shall contain the following information as of the report cutoff date: (i) the gross revenue collected under each tax and the year or other applicable period for or during which the liability was incurred; (ii) the amount of money spent on advertising, notification, and outreach activities, by each activity, and a description of the form and content of such activities, by each activ- ity; (iii) the amount paid by the department of taxation and finance for services and expenses related to the establishment of the amnesty program; and (iv) an estimate of the net revenue generated from the amnesty program. § 6. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019. PART CCC Section 1. Subsection (oo) of section 606 of the tax law, as amended by chapter 239 of the laws of 2009, paragraph 1 as amended by chapter 472 of the laws of 2010, subparagraph (A) of paragraph 1 and paragraphs 4 and 5 as amended by section 1 of part F of chapter 59 of the laws of 2013, is amended to read as follows: (oo) Credit for rehabilitation of historic properties. (1) (A) For taxable years beginning on or after January first, two thousand ten and before January first, two thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to [one hundred percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under subsection (a) (2) of section 47 of the federal internal revenue code] TWENTY PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed five million dollars. For taxable years beginning on or after January first, two thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the [amount of credit allowed the taxpayer with respect to a certified historic structure under subsection (a)(2) of section 47 of the federal internal revenue code] QUALIFIED REHABILITATION EXPENDITURES with respect to a certified historic struc- ture located within the state; provided, however, the credit shall not exceed one hundred thousand dollars. FOR PURPOSES OF THIS SUBSECTION THE TERM "QUALIFIED REHABILITATION EXPENDITURE" MEANS ANY AMOUNT PROPERLY CHARGEABLE TO CAPITAL ACCOUNT IN CONNECTION WITH THE CERTIFIED REHABILI- TATION OF A QUALIFIED HISTORIC STRUCTURE, AND FOR PROPERTY FOR WHICH DEPRECIATION WOULD BE ALLOWABLE UNDER SECTION 168 OF THE INTERNAL REVEN- UE CODE AND WHICH IS (I) NONRESIDENTIAL REAL PROPERTY, (II) RESIDENTIAL RENTAL PROPERTY, OR (III) AN ADDITION OR IMPROVEMENT TO NONRESIDENTIAL REAL PROPERTY OR RESIDENTIAL RENTAL PROPERTY. (B) If the taxpayer is a partner in a partnership or a shareholder of a New York S corporation, then the credit cap imposed in subparagraph (A) of this paragraph shall be applied at the entity level, so that the aggregate credit allowed to all the partners or shareholders of each such entity in the taxable year does not exceed the credit cap that is applicable in that taxable year. (2) (A) Tax credits allowed pursuant to this subsection shall be allowed in the taxable year [that the qualified rehabilitation is placed in service under section 167 of the federal internal revenue code] IN S. 7509--B 62 WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS COMPLETED AS PROVIDED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH. (B) FOR PURPOSES OF THIS SUBSECTION THE TERM "CERTIFIED REHABILI- TATION" MEANS ANY REHABILITATION OF A CERTIFIED HISTORIC STRUCTURE WHICH HAS BEEN APPROVED AND CERTIFIED AS BEING CONSISTENT WITH THE STANDARDS ESTABLISHED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRES- ERVATION FOR REHABILITATION BY THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, A LOCAL GOVERNMENT CERTIFIED PURSUANT TO SECTION 101(C)(1) OF THE NATIONAL HISTORIC PRESERVATION ACT OR A LOCAL LANDMARK COMMISSION ESTABLISHED PURSUANT TO SECTION NINETY-SIX-A OR ONE HUNDRED NINETEEN-DD OF THE GENERAL MUNICIPAL LAW. (C) A CERTIFIED REHABILITATION SHALL REQUIRE: (I) AN INITIAL CERTIFICATION THAT THE STRUCTURE MEETS THE DEFINITION OF THE TERM "CERTIFIED HISTORIC STRUCTURE"; (II) A SECOND CERTIFICATION, TO BE ISSUED PRIOR TO CONSTRUCTION, CERTIFYING THAT THE PROPOSED REHABILITATION WORK IS CONSISTENT WITH STANDARDS ESTABLISHED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION FOR REHABILITATION; AND (III) A FINAL CERTIFICATION ISSUED WHEN CONSTRUCTION IS COMPLETED, CERTIFYING THAT THE WORK WAS COMPLETED AS PROPOSED AND THAT THE COSTS ARE CONSISTENT WITH THE WORK COMPLETED. SUCH FINAL CERTIFICATION SHALL BE ACCEPTABLE AS PROOF THAT THE EXPENDITURES RELATED TO SUCH CONSTRUCTION QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR PURPOSES OF THE CREDIT ALLOWED UNDER EITHER SUBPARAGRAPH (A) OR (B) OF PARAGRAPH ONE OF THIS SUBSECTION. (D) FOR PURPOSES OF THIS SUBSECTION THE TERM "QUALIFIED HISTORIC STRUCTURE" MEANS A CERTIFIED HISTORIC STRUCTURE LOCATED WITHIN NEW YORK STATE WHICH HAS BEEN SUBSTANTIALLY REHABILITATED. A CERTIFIED HISTORIC STRUCTURE SHALL BE CONSIDERED SUBSTANTIALLY REHABILITATED IF THE QUALI- FIED REHABILITATION EXPENDITURES IN RELATION TO SUCH STRUCTURE TOTAL FIVE THOUSAND DOLLARS OR MORE. (E) FOR PURPOSES OF THIS SUBSECTION THE TERM "CERTIFIED HISTORIC STRUCTURE" MEANS ANY BUILDING AND ITS STRUCTURAL COMPONENTS WHICH: (I) IS LISTED IN THE STATE OR NATIONAL REGISTER OF HISTORIC PLACES, OR (II) IS LOCATED IN A STATE OR NATIONAL REGISTERED HISTORIC DISTRICT AND IS CERTIFIED AS BEING OF HISTORIC SIGNIFICANCE IN THE DISTRICT. (3) [If the credit allowed the taxpayer pursuant to section 47 of the internal revenue code with respect to a qualified rehabilitation is recaptured pursuant to subsection (a) of section 50 of the internal revenue code, a portion of the credit allowed under this subsection must be added back in the same taxable year and in the same proportion as the federal recapture] (A) IF, BEFORE THE END OF THE TWO-YEAR PERIOD BEGIN- NING ON THE DATE OF THE FINAL CERTIFICATION REFERRED TO IN SUBPARAGRAPH (C) OF PARAGRAPH TWO OF THIS SUBSECTION, THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN A CERTIFIED HISTORIC STRUCTURE, OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE CEASES TO BE ELIGIBLE FOR THE CREDIT ALLOWED UNDER THIS SUBSECTION, THE TAXPAYER'S TAX IMPOSED BY THIS ARTI- CLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO SUCH REHABILI- TATION. (B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION OR CESSA- TION OF THE STRUCTURE OCCURRED. S. 7509--B 63 (4) If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such 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. (5) To be eligible for the credit allowable under this subsection the rehabilitation project shall be in whole or in part located within a census tract which is identified as being at or below one hundred percent of the state median family income as calculated as of [January] APRIL first of each year using the most recent five year estimate from the American community survey published by the United States Census bureau. IF THERE IS A CHANGE IN THE MOST RECENT FIVE YEAR ESTIMATE, A CENSUS TRACT THAT QUALIFIED FOR ELIGIBILITY UNDER THIS SUBSECTION BEFORE INFORMATION ABOUT THE CHANGE WAS RELEASED SHALL REMAIN ELIGIBLE FOR A CREDIT UNDER THIS SUBSECTION FOR AN ADDITIONAL EIGHTEEN MONTHS. (6) NOTHING CONTAINED IN THIS SUBSECTION SHALL BE CONSTRUED TO IMPOSE A DUTY ON A LOCAL LANDMARK COMMISSION ESTABLISHED PURSUANT TO SECTION NINETY-SIX-A OR ONE HUNDRED NINETEEN-DD OF THE GENERAL MUNICIPAL LAW OR A LOCAL GOVERNMENT CERTIFIED PURSUANT TO SECTION 101(C)(1) OF THE NATIONAL HISTORIC PRESERVATION ACT TO UNDERTAKE ANY REVIEW OR APPROVAL OF AN APPLICATION FOR THE CERTIFICATION OF THE REHABILITATION OF HISTOR- IC STRUCTURES AND OF REHABILITATION EXPENDITURES PROVIDED FOR IN THIS SUBSECTION. § 2. Paragraph 2 of subsection (pp) of section 606 of the tax law, as added by chapter 547 of the laws of 2006, subparagraphs (A) and (B) as amended by section 1 of part V of chapter 59 of the laws of 2013, is amended to read as follows: (2) (A) With respect to any particular residence of a taxpayer, the credit allowed under paragraph one of this subsection shall not exceed fifty thousand dollars for taxable years beginning on or after January first, two thousand ten and before January first, two thousand [twenty] TWENTY-FIVE and twenty-five thousand dollars for taxable years beginning on or after January first, two thousand [twenty] TWENTY-FIVE. In the case of a husband and wife, the amount of the credit shall be divided between them equally or in such other manner as they may both elect. If a taxpayer incurs qualified rehabilitation expenditures in relation to more than one residence in the same year, the total amount of credit allowed under paragraph one of this subsection for all such expenditures shall not exceed fifty thousand dollars for taxable years beginning on or after January first, two thousand ten and before January first, two thousand [twenty] TWENTY-FIVE and twenty-five thousand dollars for taxa- ble years beginning on or after January first, two thousand [twenty] TWENTY-FIVE. (B) For taxable years beginning on or after January first, two thou- sand ten and before January first, two thousand [twenty] TWENTY-FIVE, if the amount of credit allowable under this subsection shall exceed the taxpayer's tax for such year, and the taxpayer's New York adjusted gross income for such year does not exceed sixty thousand dollars, 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. If the taxpayer's New York adjusted gross income for such year exceeds sixty thousand dollars, the excess credit that may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years. For taxable years beginning on or after January first, two thousand [twenty] TWENTY-FIVE, if the amount of credit allow- S. 7509--B 64 able 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. § 3. Subdivision 26 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: 26. Credit for rehabilitation of historic properties. (a) Application of credit. (i) For taxable years beginning on or after January first, two thousand ten, and before January first, two thousand [twenty] TWEN- TY-FIVE, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to [one hundred percent of the amount of credit allowed the taxpayer for the same taxable year with respect to a certified historic structure under subsection (c)(2) of section 47 of the internal revenue code] TWENTY PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES with respect to a certified historic structure located within the state. Provided, howev- er, the credit shall not exceed five million dollars. (ii) For taxable years beginning on or after January first, two thou- sand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as here- inafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the [amount of credit allowed the taxpayer for the same taxable year with respect to a certified historic structure under subsection (c)(3) of section 47 of the internal revenue code] QUALIFIED REHABILITATION EXPENDITURES with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed one hundred thousand dollars. [(B)] (B) If the taxpayer is a partner in a partnership or a share- holder in a New York S corporation, then the credit caps imposed in [subparagraph (A)] PARAGRAPH (A) of this [paragraph] SUBDIVISION shall be applied at the entity level, so that the aggregate credit allowed to all the partners or shareholders of each such entity in the taxable year does not exceed the credit cap that is applicable in that taxable year. [(b)] (C) Tax credits allowed pursuant to this subdivision shall be allowed in the taxable year [that the qualified rehabilitation is placed in service under section 167 of the federal internal revenue code] IN WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS COMPLETED PURSUANT TO SUBPARAGRAPH (C) OF PARAGRAPH TWO OF SUBSECTION (OO) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. [(c) If the credit allowed the taxpayer pursuant to section 47 of the internal revenue code with respect to a qualified rehabilitation is recaptured pursuant to subsection (a) of section 50 of the internal revenue code, a portion of the credit allowed under this subsection must be added back in the same taxable year and in the same proportion as the federal credit] (D)(I) IF, BEFORE THE END OF THE TWO-YEAR PERIOD BEGIN- NING ON THE DATE OF THE FINAL CERTIFICATION REFERRED TO IN PARAGRAPH (B) OF THIS SUBDIVISION, THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN A CERTIFIED STRUCTURE, OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE CEASES TO BE ELIGIBLE FOR THE CREDIT ALLOWED UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO SUCH REHABILITATION. (II) FOR PURPOSES OF SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE RECAPTURE PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO S. 7509--B 65 TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION OR CESSA- TION OF THE STRUCTURE OCCURRED. [(d)] (E) 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. However, if the amount of the credit 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 shall be treated as an overpayment of tax to be recredited 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 shall be paid thereon. [(e)] (F) To be eligible for the credit allowable under this subdivi- sion, the rehabilitation project shall be in whole or in part located within a census tract which is identified as being at or below one hundred percent of the state median family income as calculated as of January first of each year using the most recent five year estimate from the American community survey published by the United States Census bureau. § 4. Paragraphs 1, 2 and 3 of subdivision (y) of section 1511 of the tax law, as added by chapter 472 of the laws of 2010, subparagraph (A) of paragraph 1 as amended by section 4 of part F of chapter 59 of the laws of 2013, are amended to read as follows: (1) (A) For taxable years beginning on or after January first, two thousand ten and before January first, two thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to [one hundred percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under subsection (a)(2) of section 47 of the federal internal revenue code] TWENTY PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed five million dollars. For taxable years begin- ning on or after January first, two thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the [amount of credit allowed the taxpayer with respect to a certified historic structure under subsection (a)(2) of section 47 of the federal internal revenue code] QUALIFIED REHABILITATION EXPENDITURE with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed one hundred thousand dollars. (B) If the taxpayer is a partner in a partnership, then the cap imposed in subparagraph (A) of this paragraph shall be applied at the entity level, so that the aggregate credit allowed to all the partners of such partnership in the taxable year does not exceed the credit cap that is applicable in that taxable year. (2) Tax credits allowed pursuant to this subsection shall be allowed in the taxable year [that the qualified rehabilitation is placed in service under section 167 of the federal internal revenue code] IN WHICH THE FINAL CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS COMPLETED PURSUANT TO SUBPARAGRAPH (C) OF PARAGRAPH TWO OF SUBSECTION (OO) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. (3) [If the credit allowed the taxpayer pursuant to section 47 of the internal revenue code with respect to a qualified rehabilitation is S. 7509--B 66 recaptured pursuant to subsection (a) of section 50 of the internal revenue code, a portion of the credit allowed under this subsection in the taxable year the credit was claimed must be added back in the same taxable year and in the same proportion as the federal recapture] (A) IF, BEFORE THE END OF THE TWO-YEAR PERIOD BEGINNING ON THE DATE OF THE FINAL CERTIFICATION REFERRED TO IN PARAGRAPH TWO OF THIS SUBDIVISION, THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN A CERTIFIED STRUC- TURE, OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE CEASES TO BE ELIGI- BLE FOR THE CREDIT ALLOWED UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO SUCH REHABILITATION. (B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE PORTION SHALL BE THE PRODUCT OF THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION OR CESSA- TION OF THE STRUCTURE OCCURRED. § 5. Subdivision 6 of section 13.15 of the parks, recreation and historic preservation law, as added by chapter 547 of the laws of 2006, is amended to read as follows: 6. The office may establish a fee or fees for its processing and review of applications for the certification of the rehabilitation of historic buildings and the approval of rehabilitation expenditures and related work pursuant to [subsection] SUBSECTIONS (OO) AND (pp) of section six hundred six of the tax law. All revenues from these fees shall be deposited by the comptroller in the miscellaneous special revenue fund to be credited to the agency's patron services account and shall be used to support the office's historic preservation program. Nothing in this subdivision shall be construed to limit the ability of a local landmark commission established pursuant to section ninety-six-a or one hundred nineteen-dd of the general municipal law or a local government certified pursuant to section 101(c)(1) of the national historic preservation act to establish and charge fees for its process- ing and review of applications for the certification of the rehabili- tation of historic buildings and the approval of rehabilitation expendi- tures. § 6. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2018. PART DDD Section 1. Section 606 of the tax law is amended by adding a new subsection (iii) to read as follows: (III) CLINICAL PRECEPTORSHIP CREDIT. (1) GENERAL. A TAXPAYER WHO IS A PRECEPTOR CLINICIAN WHO PROVIDES PRECEPTOR INSTRUCTION AS PART OF A CLINICAL PRECEPTORSHIP SHALL BE ALLOWED A CREDIT OF ONE THOUSAND DOLLARS FOR EACH ONE HUNDRED HOURS OF SUCH PRECEPTOR INSTRUCTION; PROVIDED THAT THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION SHALL NOT EXCEED THREE THOUSAND DOLLARS DURING ANY TAXABLE YEAR. (2) DEFINITIONS. AS USED IN THIS SUBSECTION: (A) THE TERM "PRECEPTOR CLINICIAN" MEANS A (I) PHYSICIAN LICENSED PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE OF THE EDUCATION LAW, (II) PHYSICIAN ASSISTANT LICENSED PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE-B OF THE EDUCATION LAW, (III) SPECIALIST ASSISTANT REGISTERED PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE-C OF THE EDUCATION LAW, (IV) S. 7509--B 67 CERTIFIED REGISTERED NURSE ANESTHETIST CERTIFIED BY THE EDUCATION DEPARTMENT, (V) REGISTERED PROFESSIONAL NURSE LICENSED PURSUANT TO SECTION SIXTY-NINE HUNDRED FIVE OF THE EDUCATION LAW, (VI) NURSE PRACTI- TIONER CERTIFIED PURSUANT TO SECTION SIXTY-NINE HUNDRED TEN OF THE EDUCATION LAW, (VII) CLINICAL NURSE SPECIALIST CERTIFIED PURSUANT TO SECTION SIXTY-NINE HUNDRED ELEVEN OF THE EDUCATION LAW, OR (VIII) MIDWIFE LICENSED PURSUANT TO ARTICLE ONE HUNDRED FORTY OF THE EDUCATION LAW, WHO, WITHOUT THE PROVISION OF ANY FORM OF COMPENSATION THEREFOR, PROVIDES A CLINICAL PRECEPTORSHIP OR PRECEPTORSHIPS INCLUDING, BUT NOT LIMITED TO, BOTH COMMUNITY AND IN-PATIENT FACILITIES, DURING THE TAXABLE YEAR. (B) THE TERM "CLINICAL PRECEPTORSHIP" MEANS A PRECEPTORSHIP FOR A STUDENT ENROLLED IN A NEW YORK STATE BASED EDUCATIONAL PROGRAM APPROVED PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW TO BECOME A PHYSICIAN, PHYSICIAN ASSISTANT, SPECIALIST ASSISTANT, CERTIFIED REGISTERED NURSE ANESTHETIST, REGISTERED PROFESSIONAL NURSE, NURSE PRACTITIONER, CLINICAL NURSE SPECIALIST OR MIDWIFE, AND WHICH PRECEPTORSHIP PROVIDES PRECEPTOR INSTRUCTION IN FAMILY MEDICINE, INTERNAL MEDICINE, PEDIATRICS, OBSTET- RICS AND GYNECOLOGY, EMERGENCY MEDICINE, PSYCHIATRY OR GENERAL SURGERY UNDER THE SUPERVISION OF A PRECEPTOR CLINICIAN. (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE 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, THAT NO INTEREST SHALL BE PAID THEREON. § 2. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law. PART EEE Section 1. The tax law is amended by adding a new section 24-b to read as follows: § 24-B. TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT. (A)(1) A TAXPAYER WHICH IS A QUALIFIED FILM PRODUCTION COMPANY, OR A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY, OR WHICH IS A SOLE PROPRIETOR OF OR A MEMBER OF A PARTNERSHIP WHICH IS A QUALIFIED FILM PRODUCTION COMPANY OR A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY, AND WHICH IS SUBJECT TO TAX UNDER ARTICLES NINE-A OR TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (C) OF THIS SECTION, TO BE COMPUTED AS HEREINAFTER PROVIDED. (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) OF THIRTY PERCENT AND THE QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES COSTS PAID OR INCURRED IN THE PRODUCTION OF A QUALIFIED FILM, PROVIDED THAT: (I) THE CREDIT AMOUNT SHALL NOT EXCEED FIFTY THOUSAND DOLLARS FOR QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND SALA- RIES CLAIMED FOR SUCH EXPENSES INCURRED FOR THE EMPLOYMENT OF ANY ONE SPECIFIC WRITER OR DIRECTOR FOR THE PRODUCTION OF A SINGLE TELEVISION PILOT OR A SINGLE EPISODE OF A TELEVISION SERIES, AND (II) THE CREDIT AMOUNT SHALL NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS FOR QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CLAIMED FOR SUCH EXPENSES INCURRED FOR THE EMPLOYMENT OF ANY ONE SPECIFIC WRITER OR DIRECTOR. THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR IN WHICH THE PRODUCTION OF SUCH QUALIFIED FILM IS COMPLETED. S. 7509--B 68 (3) NO QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES USED BY A TAXPAYER 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 BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER. (B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (1) "QUALIFIED FILM PRODUCTION COMPANY" IS A CORPORATION, PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL WHICH OR WHO IS PRIN- CIPALLY ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM AND CONTROLS THE QUALIFIED FILM DURING PRODUCTION. (2) "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS A CORPORATION, PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL, THAT OR WHO (I) IS PRINCIPALLY ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM WITH A MAXIMUM BUDGET OF FIFTEEN MILLION DOLLARS, (II) CONTROLS THE QUALIFIED FILM DURING PRODUCTION, AND (III) EITHER IS NOT A PUBLICLY TRADED ENTITY, OR NO MORE THAN FIVE PERCENT OF THE BENEFICIAL OWNERSHIP OF WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY A PUBLICLY TRADED ENTITY. (3) "QUALIFIED FILM" MEANS A TELEVISION FILM, TELEVISION PILOT AND/OR EACH EPISODE OF A TELEVISION SERIES, REGARDLESS OF THE MEDIUM BY MEANS OF WHICH THE FILM, PILOT OR EPISODE IS CREATED OR CONVEYED. (4) "QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES" MEANS: (I) SALARIES OR FEES PAID TO A WRITER OR DIRECTOR WHO RECEIVES AN ON-AIR CREDIT; (II) FOR A NON-CREDITED WRITER, UP TO SEVENTY-FIVE THOU- SAND DOLLARS IN SALARIES OR FEES PER SERIES OF EPISODES. PROVIDED THAT IN EACH CASE, SUCH WRITER OR DIRECTOR IS A MINORITY GROUP MEMBER, AS DEFINED IN SUBDIVISION EIGHT OF SECTION THREE HUNDRED TEN OF THE EXECU- TIVE LAW, OR A WOMAN, AND PROVIDED, FURTHER, THAT SALARIES OR FEES PAID TO ANY WRITER OR DIRECTOR WHO IS A PROFIT PARTICIPANT IN THE QUALIFIED FILM SHALL NOT BE ELIGIBLE. (5) "WRITER" MEANS A PERSON WHO IS: (I) ENGAGED BY A QUALIFIED FILM PRODUCTION COMPANY OR A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY TO WRITE LITERARY MATERIAL (INCLUDING MAKING CHANGES OR REVISIONS IN LITER- ARY MATERIAL), WHEN THE COMPANY HAS THE RIGHT BY CONTRACT TO DIRECT THE PERFORMANCE OF PERSONAL SERVICES IN WRITING OR PREPARING SUCH MATERIAL OR IN MAKING REVISIONS, MODIFICATIONS OR CHANGES THEREIN; OR (II) ENGAGED BY THE COMPANY AND WHO PERFORMS SERVICES (AT THE COMPANY'S DIRECTION OR WITH ITS CONSENT) IN WRITING OR PREPARING SUCH LITERARY MATERIAL OR MAKING REVISIONS, MODIFICATIONS, OR CHANGES IN SUCH MATERI- AL; AND (III) WHO REPORTS TO WORK REGULARLY IN A WRITERS ROOM LOCATED IN THE STATE. (6) "LITERARY MATERIAL" SHALL BE DEEMED TO INCLUDE STORIES, ADAPTA- TIONS, TREATMENTS, ORIGINAL TREATMENTS, SCENARIOS, CONTINUITIES, TELE- PLAYS, SCREENPLAYS, DIALOGUE, SCRIPTS, SKETCHES, PLOTS, OUTLINES, NARRA- TIVE SYNOPSES, ROUTINES, NARRATIONS, AND FORMATS. (7) "WRITERS ROOM" MEANS A ROOM OR PHYSICAL LOCATION WHERE WRITERS EMPLOYED BY A QUALIFIED FILM PRODUCTION COMPANY OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY WRITE OR REVISE LITERARY MATERIALS UTILIZED IN A QUALIFIED FILM. (8) "DIRECTOR" MEANS AN INDIVIDUAL EMPLOYED OR RETAINED TO DIRECT THE PRODUCTION, AS THE WORD "DIRECT" IS COMMONLY USED IN THE MOTION PICTURE INDUSTRY, AND WHO WOULD BE CLASSIFIED AS A DIRECTOR UNDER THE BASIC AGREEMENT IN PLACE BETWEEN THE ASSOCIATION OF MOTION PICTURE AND TELE- VISION PRODUCERS AND THE DIRECTOR'S GUILD OF AMERICA AND WHO IS A RESI- DENT OF NEW YORK. S. 7509--B 69 (9) "PROFIT PARTICIPANT" IS AN INDIVIDUAL WHO HAS NEGOTIATED FOR A PERCENTAGE OF PROFITS GENERATED BY A QUALIFIED FILM. PROFIT PARTIC- IPATION DOES NOT INCLUDE MONIES CONTRACTUALLY REQUIRED BY COLLECTIVELY BARGAINED AGREEMENTS FOR REUSE OF A QUALIFIED FILM ON DIFFERENT PLAT- FORMS OVER TIME. (C) 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 53. (2) ARTICLE 22: SECTION 606: SUBSECTION (V). (D) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, (1) 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 (2) THE COMMIS- SIONER AND THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT MAY RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THIS CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY THE TAXPAYER. PROVIDED, HOWEVER, IF A TAXPAYER CLAIMS THIS CREDIT BECAUSE IT IS A MEMBER OF A LIMITED LIABILITY COMPANY OR A PARTNER IN A PARTNERSHIP, ONLY THE AMOUNT OF CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER MAY BE RELEASED. (E) MAXIMUM AMOUNT OF CREDITS. (1) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SECTION, SUBDIVISION FIFTY-THREE OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (V) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY CALENDAR YEAR SHALL BE FIVE MILLION DOLLARS. SUCH AGGRE- GATE 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 TELEVISION WRITERS' AND DIREC- TORS' FEES AND SALARIES 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 SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR. (2) THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AFTER CONSULTING WITH THE COMMISSIONER, SHALL PROMULGATE REGULATIONS BY OCTOBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX CREDITS AS REQUIRED BY SUBDIVISION (A) OF THIS SECTION. SUCH RULES AND REGULATIONS SHALL INCLUDE PROVISIONS DESCRIBING THE APPLICATION PROCESS, THE DUE DATES FOR SUCH APPLICATIONS, 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- LATIONS MAY BE ADOPTED ON AN EMERGENCY BASIS IF NECESSARY TO MEET SUCH OCTOBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN DEADLINE. (F) THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL SUBMIT TO THE GOVER- NOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, AN ANNUAL REPORT TO BE SUBMITTED ON FEBRUARY FIRST OF EACH YEAR EVALUATING THE EFFECTIVENESS OF THE TELEVISION WRITERS' AND DIREC- TORS' FEES AND SALARIES TAX CREDIT PROVIDED BY THIS SECTION IN STIMULAT- ING THE GROWTH OF DIVERSITY IN THE FILM INDUSTRY IN THE STATE. SUCH REPORT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, THE NUMBER OF QUALI- S. 7509--B 70 FIED FILM PRODUCTION COMPANIES AND/OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANIES WHICH RECEIVED A TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT, THE CREDIT AMOUNTS CLAIMED BY EACH QUALIFIED FILM PRODUCTION COMPANY AND/OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY, AS WELL AS THE IMPACT ON EMPLOYMENT AND THE ECONOMY OF THE STATE. SUCH REPORT SHALL BE BASED ON DATA AVAILABLE FROM THE APPLICATION FILED WITH THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR ALLOCATION OF TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDITS. NOTWITH- STANDING 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 RECOMMENDATION OF THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT REGARDING CONTINUING MODIFICATION, REPEAL OF SUCH ACT, AND SUCH OTHER INFORMATION REGARDING THE ACT AS THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT MAY FEEL USEFUL AND APPROPRIATE. § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: 53. TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION TWENTY-FOUR-B 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. § 3. Section 606 of the tax law is amended by adding a new subsection (v) to read as follows: (V) TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION TWENTY-FOUR-B 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. § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlix) to read as follows: (XLIX) TELEVISION WRITERS' AMOUNT OF CREDIT FOR THE SUM OF AND DIRECTORS' FEES AND SALARIES QUALIFIED TELEVISION WRITERS' AND CREDIT UNDER SUBSECTION (V) DIRECTORS' SALARIES CREDIT UNDER SUBDIVISION FIFTY-THREE OF SECTION TWO HUNDRED TEN-B S. 7509--B 71 § 5. This act shall take effect immediately, and shall apply to taxa- ble years beginning on or after January 1, 2019. PART FFF Section 1. Subsection (i) of section 612 of the tax law is REPEALED. § 2. Subdivision (i) of section 11-1712 of the administrative code of the city of New York, as amended by chapter 333 of the laws of 1987, is amended to read as follows: (i) In the case of mines, oil and gas wells and other natural depos- its, any allowance for percentage depletion pursuant to section six hundred thirteen or section six hundred thirteen A of the internal revenue code shall be added to federal adjusted gross income. However, with respect to the property as to which such addition to federal adjusted gross income is required, an allowance for depletion shall be subtracted from federal adjusted gross income in the amount that would be deductible under section six hundred eleven of such code if the deduction for an allowance for depletion were computed without reference to such section six hundred thirteen or section six hundred thirteen A. [With respect to the computation of depletion pursuant to this subdivi- sion, the basis for such computation shall be the basis for state income tax purposes provided for in subsection (i) of section six hundred twelve of the tax law.] The portion of any gain from the sale or other disposition of such property having a higher adjusted basis for city income tax purposes than for federal income tax purposes, that does not exceed such difference in basis, shall be subtracted from federal adjusted gross income. § 3. Paragraph 10 of subsection (b) of section 612 of the tax law is REPEALED. § 4. Paragraph 13 of subsection (c) of section 612 of the tax law is REPEALED. § 5. Subsection 4 of section 618 of the tax law, as amended by section 9 of part C of chapter 25 of the laws of 2009, is amended to read as follows: (4) There shall be added or subtracted (as the case may be) the modifications described in paragraphs (6)[, (10)], (17), (18), (19), (20), (21), (22), (23), (24), (25), (26), (27), (29), (38) and (39) of subsection (b) and in paragraphs (11)[, (13)], (15), [(19),] (20), (21), (22), (23), (24), (25), (26) and (28) of subsection (c) of section six hundred twelve of this part. § 6. Subsection 4 of section 618 of the tax law, as separately amended by section 5 of part HH-1 of chapter 57 of the laws of 2008 and section 9 of part C of chapter 25 of the laws of 2009, is amended to read as follows: (4) There shall be added or subtracted (as the case may be) the modifications described in paragraphs (6)[, (10)], (17), (18), (19), (20), (21), (22), (23), (24), (25), (26), (27), [(28),] (29), (38) and (39) of subsection (b) and in paragraphs (11)[, (13)], (15), [(19),] (20), (21), (22), (23), (24), (25), (26) and (28) of subsection (c) of section six hundred twelve of this part. § 7. This act shall take effect immediately and shall apply to all taxable years beginning on or after January 1, 2019; provided that the amendments to subsection 4 of section 618 of the tax law made by section five of this act shall be subject to the expiration and reversion of such subdivision pursuant to section 8 of chapter 782 of the laws of S. 7509--B 72 1988, as amended, when upon such date the provisions of section six of this act shall take effect. PART GGG Section 1. Paragraph 38 of subsection (c) of section 612 of the tax law, as added by chapter 565 of the laws of 2006, is amended to read as follows: (38) An amount of up to ten thousand dollars if a taxpayer, while living, donates one or more of his or her human organs to another human being for human organ transplantation. For purposes of this paragraph, "human organ" means all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. A subtract modification allowed under this para- graph shall be claimed in the taxable year in which the human organ transplantation occurs. (A) A taxpayer shall claim the subtract modification allowed under this paragraph only once and such subtract modification shall be claimed for only the following unreimbursed expenses which are incurred by the taxpayer OR SPOUSE OF THE TAXPAYER, and related to the taxpayer's organ donation: (i) travel expenses; (ii) lodging expenses; [and] (iii) lost wages[.]; AND (IV) CHILD CARE COSTS; (B) The subtract modification allowed under this paragraph shall not be claimed by a part-year resident or a non-resident of this state. § 2. This act shall take effect on the sixtieth day after it shall have become a law. PART HHH Section 1. Subdivision (e) of section 24-a of the tax law, as added by section 1 of part HH of chapter 59 of the laws of 2014, is amended to read as follows: (e) Maximum amount of credits. (1) The aggregate amount of tax credits allowed under this section, subdivision forty-seven of section two hundred ten-B and subsection (u) of section six hundred six of this chapter in any calendar year shall be [four] SIX million dollars. 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 musical and theatrical production 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 section, such excess shall be treated as having been applied for on the first day of the subsequent year. (2) The commissioner of economic development, after consulting with the commissioner, shall promulgate regulations by October thirty-first, two thousand fourteen to establish procedures for the allocation of tax credits as required by subdivision (a) of this section. Such rules and regulations shall include provisions describing the application process, the due dates for such applications, 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. SUCH RULES AND REGULATIONS SHALL PERMIT AN APPLI- S. 7509--B 73 CANT FOR CREDITS UNDER THIS SECTION TO PROVIDE THE REQUIRED CERTIF- ICATIONS BY PROVIDING INFORMATION AND OTHER DOCUMENTATION PROVIDED BY A LICENSED AUDITOR ON BEHALF OF THE APPLICANT. 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 fourteen dead- line. § 2. Section 5 of part HH of chapter 59 of the laws of 2014 amending the tax law relating to a musical and theatrical production credit, is amended to read as follows: § 5. This act shall take effect immediately, provided that section two of this act shall take effect on January 1, 2015, and shall apply to taxable years beginning on or after January 1, 2015, with respect to "qualified production expenditures" and "transportation expenditures" paid or incurred on or after such effective date, regardless of whether the production of the qualified musical or theatrical production commenced before such date, provided further that this act shall expire and be deemed repealed [4 years after such date] MARCH 31, 2023. § 3. This act shall take effect immediately, provided, however, that the amendments to section 24-a of the tax law made by section one of this act shall not affect the repeal of such section and shall expire and be deemed to repeal therewith. PART III Section 1. The education law is amended by adding a new section 682 to read as follows: § 682. COLLEGE DEBT FREEDOM ACCOUNT PILOT PROGRAM. 1. THERE IS HEREBY ESTABLISHED THE COLLEGE DEBT FREEDOM ACCOUNT PILOT PROGRAM. SUCH PROGRAM SHALL PERMIT EMPLOYEES OF ANY EMPLOYER JOINTLY CERTIFIED BY THE COMMIS- SIONER AND THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO THIS SECTION TO DEPOSIT A PORTION OF THEIR PRE-TAX INCOME PURSUANT TO PARA- GRAPH FORTY-FOUR OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THE TAX LAW, INTO AN ACCOUNT SOLELY INTENDED FOR UNDERGRADUATE STUDENT LOAN REPAYMENTS. CERTIFIED EMPLOYERS SHALL RECEIVE A TAX CREDIT BY CONTRIB- UTING MATCHING FUNDS TO AN EMPLOYEE'S STUDENT LOAN REPAYMENT ACCOUNT ESTABLISHED PURSUANT TO THIS SECTION. SUCH CONTRIBUTION SHALL BE MINI- MALLY FIFTY PERCENT OF THE EMPLOYEE'S DEPOSIT AND A MAXIMUM ONE HUNDRED PERCENT OF THE EMPLOYEE'S DEPOSIT, UP TO TWENTY-FIVE HUNDRED DOLLARS ANNUALLY, PER EMPLOYEE ACCOUNT. THE ANNUAL MAXIMUM AGGREGATE AMOUNT TO BE DEPOSITED PER ACCOUNT BY THE EMPLOYEE AND EMPLOYER SHALL BE FIVE THOUSAND DOLLARS. 2. FOR THE PURPOSES OF THIS SECTION, "STUDENT LOAN" SHALL MEAN THE CUMULATIVE TOTAL OF THE ANNUAL STUDENT LOANS COVERING THE COST OF ATTENDANCE AT AN UNDERGRADUATE COLLEGE OR UNIVERSITY, AND ANY INTEREST THEREON OR AS DEFINED IN SUBPARAGRAPH (I) OF PARAGRAPH FORTY-FOUR OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THE TAX LAW. 3. ANY EMPLOYER WHICH IS A MIDDLE-SIZED BUSINESS IN THIS STATE, HAVING BETWEEN TWENTY AND FIVE HUNDRED FULL-TIME EMPLOYEES, MAY SUBMIT AN APPLICATION TO THE COMMISSIONER FOR CERTIFICATION TO PARTICIPATE IN THE PROGRAM ESTABLISHED PURSUANT TO THIS SECTION. THE COMMISSIONER AND THE COMMISSIONER OF TAXATION AND FINANCE SHALL JOINTLY CONSIDER EACH APPLI- CATION FOR CERTIFICATION SUBMITTED PURSUANT TO THIS SUBDIVISION. PROVIDED THAT NOT MORE THAN FIFTY EMPLOYERS SHALL BE CERTIFIED TO PARTICIPATE IN THE PROGRAM. S. 7509--B 74 4. EMPLOYEE STUDENT LOAN REPAYMENT ACCOUNTS SHALL BE ESTABLISHED BY AN EMPLOYEE FOR DEPOSIT OF FUNDS TO BE USED SOLELY FOR REPAYMENT OF STUDENT LOANS. SUCH ACCOUNTS SHALL BE MANAGED BY THE HIGHER EDUCATION SERVICES CORPORATION. ALL ENROLLEES AND CERTIFIED PARTICIPATING EMPLOYERS SHALL PROVIDE THE CORPORATION WITH ALL NECESSARY INFORMATION IN ORDER TO IMPLEMENT THE PROVISIONS OF THIS SECTION. 5. MONEYS IN A STUDENT LOAN REPAYMENT ACCOUNT SHALL BE AVAILABLE ONLY FOR REPAYMENTS OF STUDENT LOANS. ANY WITHDRAWAL OR DISTRIBUTION FROM A STUDENT LOAN REPAYMENT ACCOUNT WHICH VIOLATED THE PROVISIONS OF THIS SUBDIVISION SHALL BE SUBJECT TO A PENALTY OF TEN PERCENT ON ANY SUCH WITHDRAWAL OR DISTRIBUTION. 6. THE COMMISSIONER AND THE COMMISSIONER OF TAXATION AND FINANCE SHALL JOINTLY PROMULGATE RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. § 2. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 44 to read as follows: (44) PAYMENT NOT IN EXCESS OF TWENTY-FIVE HUNDRED DOLLARS ACTUALLY PAID BY AN ELIGIBLE BORROWER EMPLOYED BY AN EMPLOYER CERTIFIED PURSUANT TO SECTION SIX HUNDRED EIGHTY-TWO OF THE EDUCATION LAW FOR STUDENT LOAN REPAYMENT, TO THE EXTENT NOT DEDUCTIBLE IN DETERMINING FEDERAL ADJUSTED GROSS INCOME AND NOT REIMBURSED. FOR THE PURPOSES OF THIS PARAGRAPH, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (I) "STUDENT LOANS" SHALL MEAN ANY INDEBTEDNESS INCURRED BY THE TAXPAYER FOR AN UNDERGRADUATE EDUCATION LOAN IN ACCORDANCE WITH SECTION 221 OF THE INTERNAL REVENUE CODE OR AS DEFINED IN SUBDIVISION TWO OF SECTION SIX HUNDRED EIGHTY-TWO OF THE EDUCATION LAW. (II) "ELIGIBLE BORROWER" SHALL MEAN A TAXPAYER WHO HAS INCURRED INDEBTEDNESS ON STUDENT LOANS AS DEFINED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH. § 3. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: 53. COLLEGE DEBT FREEDOM ACCOUNT PROGRAM TAX CREDIT. (A) GENERAL. AN EMPLOYER CERTIFIED PURSUANT TO SECTION SIX HUNDRED EIGHTY-TWO OF THE EDUCATION LAW, WHO CONTRIBUTES MATCHING FUNDS TOWARDS AN EMPLOYEE'S UNDERGRADUATE STUDENT LOAN REPAYMENTS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR CONTRIBUTIONS THE EMPLOYER DEPOSITS ANNUALLY, UP TO TWENTY-FIVE HUNDRED DOLLARS PER EMPLOYEE PER YEAR. (B) AMOUNT OF CREDIT. THE CREDIT AUTHORIZED BY THIS SUBDIVISION SHALL BE EQUAL TO THE AMOUNT OF THE EMPLOYER'S CONTRIBUTION; PROVIDED THAT SUCH CONTRIBUTION SHALL BE A MINIMUM OF FIFTY PERCENT AND A MAXIMUM OF ONE HUNDRED PERCENT OF THE EMPLOYEE'S DEPOSIT TO A STUDENT LOAN REPAY- MENT ACCOUNT SUBJECT TO THE LIMITS SET FORTH IN THIS SUBDIVISION. § 4. 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) COLLEGE DEBT AMOUNT OF CREDIT FREEDOM ACCOUNT UNDER SUBDIVISION FIFTY-THREE PROGRAM TAX CREDIT UNDER OF SECTION TWO HUNDRED TEN-B SUBSECTION (CCC) § 5. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) COLLEGE DEBT FREEDOM ACCOUNT PROGRAM TAX CREDIT. (A) GENERAL. AN EMPLOYER, CERTIFIED PURSUANT TO SECTION SIX HUNDRED EIGHTY-TWO OF THE EDUCATION LAW, WHO CONTRIBUTES MATCHING FUNDS TOWARDS AN EMPLOYEE'S UNDERGRADUATE STUDENT LOAN REPAYMENTS, SHALL BE ALLOWED A CREDIT, TO BE S. 7509--B 75 COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR CONTRIBUTIONS THE EMPLOYER DEPOSITS ANNUALLY, UP TO TWEN- TY-FIVE HUNDRED DOLLARS PER EMPLOYEE PER YEAR. (B) AMOUNT OF CREDIT. THE CREDIT AUTHORIZED BY THIS SUBSECTION SHALL BE EQUAL TO THE AMOUNT OF THE EMPLOYER CONTRIBUTION; PROVIDED THAT SUCH CONTRIBUTION SHALL BE A MINIMUM OF FIFTY PERCENT AND A MAXIMUM OF ONE HUNDRED PERCENT OF THE EMPLOYEE'S DEPOSIT TO A STUDENT LOAN REPAYMENT ACCOUNT SUBJECT TO THE LIMITS SET FORTH IN THIS SUBSECTION. § 6. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) COLLEGE DEBT FREEDOM ACCOUNT PROGRAM TAX CREDIT. (1) GENERAL. AN EMPLOYER, CERTIFIED PURSUANT TO SECTION SIX HUNDRED EIGHTY-TWO OF THE EDUCATION LAW, WHO CONTRIBUTES MATCHING FUNDS TOWARDS AN EMPLOYEE'S UNDERGRADUATE STUDENT LOAN REPAYMENTS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR CONTRIBUTIONS THE EMPLOYER DEPOSITS ANNUALLY, UP TO TWENTY-FIVE HUNDRED DOLLARS PER EMPLOYEE PER YEAR. (2) AMOUNT OF CREDIT. THE CREDIT AUTHORIZED BY THIS SUBDIVISION SHALL BE EQUAL TO THE AMOUNT OF THE EMPLOYER'S CONTRIBUTION; PROVIDED THAT SUCH CONTRIBUTION SHALL BE A MINIMUM OF FIFTY PERCENT AND A MAXIMUM OF ONE HUNDRED PERCENT OF THE EMPLOYEE'S DEPOSIT TO A STUDENT LOAN REPAY- MENT ACCOUNT SUBJECT TO THE LIMITS SET FORTH IN THIS SUBDIVISION. § 7. Notwithstanding any provision of the tax law to the contrary, the aggregate of tax expenditure and taxes forgone pursuant to sections two, three, four, five and six of this act shall not exceed $70,000,000. The commissioner of taxation and finance shall immediately suspend all deductions and credits established pursuant to such sections upon reach- ing the $70,000,000 threshold. § 8. This act shall take effect on the sixtieth day after it shall have become a law and shall apply to taxable years commencing on or after January 1, 2019. PART JJJ Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 44 to read as follows: (44)(A) (I) FOR A TAXPAYER WHO FILES SINGLY OR AS THE HEAD OF A HOUSE- HOLD WITH A FEDERAL ADJUSTED INCOME, WITHOUT THE DEDUCTION OF ANY INTER- EST PAID ON STUDENT LOANS, OF NOT LESS THAN SIXTY-FIVE THOUSAND DOLLARS NOR MORE THAN EIGHTY THOUSAND DOLLARS, THE DIFFERENCE BETWEEN THE INTER- EST PAID ON STUDENT LOANS BY THE TAXPAYER, IS AN AMOUNT NOT TO EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS, AND THE AMOUNT OF SUCH INTEREST DEDUCTED BY SUCH TAXPAYER TO CALCULATE HIS OR HER FEDERAL ADJUSTED GROSS INCOME; AND (II) FOR A TAXPAYER WHO FILES SINGLY OR AS THE HEAD OF A HOUSEHOLD WITH A FEDERAL ADJUSTED GROSS INCOME OF NOT LESS THAN EIGHTY THOUSAND DOLLARS, NOR MORE THAN ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS, INTER- EST, IN AN AMOUNT NOT TO EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS, PAID ON INDEBTEDNESS INCURRED FROM A STUDENT LOAN; AND (III) FOR MARRIED TAXPAYERS FILING JOINTLY WITH A FEDERAL ADJUSTED GROSS INCOME, WITHOUT THE DEDUCTION OF ANY INTEREST PAID ON STUDENT LOANS, OF NOT LESS THAN ONE HUNDRED THIRTY THOUSAND DOLLARS, NOR MORE THAN ONE HUNDRED SIXTY THOUSAND DOLLARS, THE DIFFERENCE BETWEEN THE INTEREST PAID ON STUDENT LOANS BY THE TAXPAYERS, IN AN AMOUNT NOT TO EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS, AND THE AMOUNT OF SUCH INTER- S. 7509--B 76 EST DEDUCTED BY SUCH TAXPAYERS TO CALCULATE THEIR FEDERAL ADJUSTED GROSS INCOME; AND (IV) FOR MARRIED TAXPAYERS FILING JOINTLY WITH A FEDERAL ADJUSTED GROSS INCOME OF NOT LESS THAN ONE HUNDRED SIXTY THOUSAND DOLLARS, NOR MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS, INTEREST, IN AN AMOUNT NOT TO EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS, PAID ON INDEBTEDNESS INCURRED FROM A STUDENT LOAN. (B) FOR THE PURPOSES OF THIS PARAGRAPH, "STUDENT LOAN" SHALL HAVE THE SAME MEANING AS ASCRIBED TO SUCH TERM BY SUBPARAGRAPH (B) OF PARAGRAPH FORTY-TWO OF THIS SUBSECTION, AS ADDED BY CHAPTER FOUR HUNDRED FIFTY-SIX OF THE LAWS OF TWO THOUSAND SEVENTEEN. § 2. This act shall take effect immediately, and shall apply to taxa- ble years commencing on or after January 1, 2019. PART KKK Section 1. Section 606 of the tax law is amended by adding a new subsection (p-1) to read as follows: (P-1) RESIDENTIAL FUEL OIL STORAGE TANK CREDIT. (1) ALLOWANCE OF CRED- IT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE REMOVAL OR PERMANENT CLOSURE AND INSTALLATION OF A BELOW-GROUND OR ABOVE-GROUND RESIDENTIAL FUEL OIL STORAGE TANK USED TO PROVIDE HEATING FUEL FOR SINGLE FAMILY, TWO FAMILY, THREE FAMILY AND FOUR FAMILY RESIDENCES LOCATED IN THIS STATE. (2) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE COSTS OF REMOVAL OR PERMANENT CLOSURE OF AN EXISTING BELOW-GROUND OR ABOVE-GROUND RESIDENTIAL FUEL OIL TANK AND THE PURCHASE AND INSTALLATION COSTS OF A NEW BELOW-GROUND OR ABOVE-GROUND RESIDENTIAL FUEL OIL STORAGE TANK WHICH IS INSTALLED DURING THE TAXABLE YEAR WHERE SUCH NEW TANK IS USED IN PLACE OF SUCH FORMERLY USED BELOW-GROUND OR ABOVE-GROUND RESI- DENTIAL FUEL OIL TANK WHICH WAS REMOVED OR PERMANENTLY CLOSED DURING THE TAXABLE YEAR, NOT TO EXCEED FIVE HUNDRED DOLLARS. (3) LIMITATION. A CREDIT ALLOWED UNDER THIS SUBSECTION MAY BE ALLOWED ONLY ONCE WITH RESPECT TO A PARTICULAR RESIDENCE. (4) CARRYOVER. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION EXCEEDS THE TAXPAYER'S TAX FOR ANY TAXABLE 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. (5) TO QUALIFY FOR THE CREDIT ESTABLISHED BY THIS SUBSECTION, A REPLACEMENT FUEL OIL STORAGE TANK MUST BE INSTALLED AND SHALL BE OF A DESIGN APPROVED BY UNDERWRITERS LABORATORIES (U.L.), AS FOLLOWS: (A) U.L. 80: A STEEL TANK WITH A POLYURETHANE EXTERIOR COATING; (B) U.L. 80: A STEEL TANK WITH A DOUBLE-BOTTOM LEAK PROTECTION SYSTEM, WITH OR WITHOUT A POLYURETHANE EXTERIOR COATING; (C) U.L. 80 STEEL TANK, WITHOUT A POLYURETHANE EXTERIOR COATING, PROVIDED THAT SUCH TANK IS LOCATED INSIDE A SEALED, LEAK-PROOF SECONDARY CONTAINMENT STRUCTURE LISTED TO U.L. 2258 (NON-METALLIC TUB FOR OIL TANKS), WHEREIN SUCH STRUCTURE HAS A VOLUMETRIC CAPACITY OF 110% OF THE INSIDE TANK; (D) U.L. 2558: A DOUBLE WALL TANK CONSISTING OF AN INTERIOR POLYETHY- LENE TANK PLACED INSIDE A SECONDARY LIQUID-TIGHT METALLIC TANK; (E) U.L. 2558: A SINGLE WALL OR DOUBLE WALL FIBERGLASS TANK; OR (F) U.L. 58 AND U.L. 1746-PART 1: A STEEL TANK INSTITUTE P-3 TANK WITH CATHODIC PROTECTION. S. 7509--B 77 A STANDARD UNPROTECTED SINGLE WALL OIL STORAGE TANK LISTED TO U.L. 80 IS NOT PERMITTED AS A REPLACEMENT TANK AND WILL NOT BE ELIGIBLE FOR THE TAX CREDIT PROVIDED HEREIN. § 2. The office of temporary and disability assistance shall develop a program utilizing the heating energy assistance program (HEAP) to assist eligible households to remove/permanently close and replace existing fuel oil storage tanks and to promulgate such regulations and apply for such permissions and waivers from the United States government as may be necessary to do so. To qualify for assistance, a replacement fuel oil storage tank must be installed and shall be of a design as specified in paragraph (5) of subsection (p-1) of section 606 of the tax law. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019. PART LLL Section 1. Subdivision 1 of section 190 of the tax law, as amended by section 102 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 1. General. A taxpayer shall be allowed a credit against the tax imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT- AGES of the premium paid during the taxable year for long-term care insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU- ANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW: (A) FORTY PERCENT IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; (C) TWENTY-FIVE PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; OR (D) TWENTY PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO HAVE HAD A POLICY FOR FIVE YEARS OR MORE. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law. § 2. Paragraph (a) of subdivision 14 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) General. A taxpayer shall be allowed a credit against the tax imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT- AGES of the premium paid during the taxable year for long-term care insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU- ANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW: (I) FORTY PERCENT IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; (II) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; S. 7509--B 78 (III) TWENTY-FIVE PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; OR (IV) TWENTY PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO HAVE HAD A POLICY FOR FIVE YEARS OR MORE. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law. § 3. Paragraph 1 of subsection (aa) of section 606 of the tax law, as amended by section 1 of part P of chapter 61 of the laws of 2005, is amended to read as follows: (1) Residents. A taxpayer shall be allowed a credit against the tax imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT- AGES of the premium paid during the taxable year for long-term care insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU- ANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW: (A) FORTY PERCENT IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; (C) TWENTY-FIVE PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; OR (D) TWENTY PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO HAVE HAD A POLICY FOR FIVE YEARS OR MORE. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law. If the amount of the credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years. § 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as amended by section 21 of part B of chapter 58 of the laws of 2004, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article equal to [twenty percent] THE FOLLOWING PERCENTAGES of the premium paid during the taxable year for long-term care insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSUANT TO SUBPARA- GRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW: (A) FORTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; (C) TWENTY-FIVE PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS; OR S. 7509--B 79 (D) TWENTY PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO HAVE HAD A POLICY FOR FIVE YEARS OR MORE. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law. § 5. Paragraphs 1 and 2 of subsection (g) of section 1117 of the insurance law, paragraph 1 as amended by chapter 417 of the laws of 2001, paragraph 2 as amended by section 12 of part E of chapter 63 of the laws of 2000 and subparagraphs (A) and (B) of paragraph 2 as amended by chapter 311 of the laws of 2002, are amended to read as follows: (1) Except for certain group contracts described in paragraph four of this subsection, in order for premium payments for long-term care insur- ance, OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSUANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS ARTICLE, to qualify for purposes of section one hundred ninety, subdivision [twenty-five-a] FOURTEEN of section two hundred [ten] TEN-B, subsection (aa) of section six hundred six[, subsection (k) of section one thousand four hundred fifty-six] and subsection (m) of section one thousand five hundred elev- en of the tax law, the long-term care insurance OR SUCH POLICY RIDER must be approved by the superintendent pursuant to this subsection. Prior to approving any such insurance OR POLICY RIDER, the superinten- dent shall conclude that it meets minimum standards, including minimum loss ratio standards under this section or section three thousand two hundred twenty-nine of this chapter and is a qualified long-term care insurance contract as defined in section 7702B of the internal revenue code. (2) (A) No insurer, agent, broker, person, business or corporation doing business in or into this state shall in any manner state, adver- tise or claim that a long-term care insurance policy, OR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSUANT TO SUBPARAGRAPH (C), (D), (E), OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS ARTICLE, qualifies for purposes of the above-referenced provisions of the tax law unless either: (i) the super- intendent has issued a letter or other written instrument to the insurer stating that the policy OR POLICY RIDER has been determined to qualify under this subsection, or (ii) the policy OR POLICY RIDER qualifies under paragraph four of this subsection without the need for approval by the superintendent. (B) Any policy OR POLICY RIDER which is held out or purported to be a long-term care insurance policy by any insurer, agent, broker, person, business or corporation doing business in or into this state which has not been determined by the superintendent to qualify and which does not qualify under paragraph four of this subsection for purposes of the above referenced provisions of the tax law shall so state clearly, legi- bly and in close physical proximity to any description of the policy OR POLICY RIDER as a long-term care insurance policy that it does not so qualify. This subsection shall also be deemed to cover any statement, advertisement or claim concerning such policy by any insurer, agent, broker, person, business or corporation doing business in or into this state. (C) Violation of this paragraph shall be considered a misrepresen- tation under section [twenty-one] TWO THOUSAND ONE hundred twenty-three of this chapter. S. 7509--B 80 § 6. This act shall take effect immediately and shall apply to tax years beginning on or after January 1, 2019. PART MMM Section 1. The tax law is amended by adding a new section 44 to read as follows: § 44. 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. (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. S. 7509--B 81 (7) "RURAL BUSINESS CONCERN" MEANS AN OPERATING COMPANY THAT, AT THE TIME IF 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 PRODUCES OR PROVIDES ANY GOODS OR SERVICES NORMALLY USED BY FARMERS, RANCHERS, OR PRODUCERS AND HARVESTERS OF AQUATIC PRODUCTS IN THEIR BUSINESS OPERATIONS, OR TO IMPROVE THE WELFARE OR LIVELIHOOD OF SUCH PERSONS, OR IS INVOLVED IN THE PROCESSING AND MARKET- ING OF AGRICULTURAL PRODUCTS, FARM SUPPLY, AND INPUT SUPPLIERS. 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 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) "TAXABLE YEAR" WHEN USED IN REFERENCE TO AN INSURANCE COMPANY MEANS THE CALENDAR YEAR ENDING ON THE THIRTY-FIRST DAY OF DECEMBER NEXT PRECEDING THE DAY THE ANNUAL REPORT IS REQUIRED TO BE RETURNED UNDER SUBDIVISION (D) OF THIS SECTION. (B) CERTIFICATION. (1) ON AND AFTER AUGUST FIRST, TWO THOUSAND EIGH- 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 S. 7509--B 82 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 TAX 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. (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 S. 7509--B 83 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) 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-BB 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 S. 7509--B 84 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 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 S. 7509--B 85 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 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 SECOND AND THIRD ANNIVERSARIES OF THE CLOSING DATE. THE REPORT SHALL PROVIDE DOCUMENTATION AS TO THE RURAL GROWTH INVESTMENTS MADE BY THE RURAL BUSI- NESS GROWTH FUND. SUCH DOCUMENTATION SHALL INCLUDE THE FOLLOWING: S. 7509--B 86 (A) A BANK STATEMENT OF THE RURAL BUSINESS GROWTH FUND DISPLAYING EACH RURAL GROWTH INVESTMENT; (B) THE NAME AND LOCATION 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 INVEST- MENT 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 EMPLOYMENT POSITIONS CREATED OR RETAINED AS A RESULT OF THE FUND'S RURAL GROWTH INVESTMENTS AS OF THE LAST DAY OF THE PRECED- ING CALENDAR YEAR; (B) THE AVERAGE ANNUAL SALARY OF THE POSITIONS DESCRIBED IN SUBPARA- GRAPH (A) OF THIS PARAGRAPH; (C) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. (3) THE DEPARTMENT SHALL ADOPT RULES NECESSARY TO IMPLEMENT THIS SUBDIVISION. § 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-FOUR 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 AFFILIATE OF THE TAXPAYER. (2) ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED 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 ENSUING 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-q to read as follows: § 187-Q. 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-FOUR 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 AFFILIATE OF THE TAXPAYER. S. 7509--B 87 2. ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED 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 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 ENSUING 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 53 to read as follows: 53. 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-FOUR 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 AFFILIATE OF THE TAXPAYER. (2) ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED 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 ENSUING 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-bb to read as follows: § 99-BB. 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-FOUR 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 S. 7509--B 88 YORK AGRICULTURE AND RURAL JOBS CREDIT SET FORTH IN SECTION FORTY-FOUR 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 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 April 1, 2019. PART NNN Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 45 to read as follows: (45) SCHOOL BUSES AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED FORTY-TWO OF THE VEHICLE AND TRAFFIC LAW, AND PARTS, EQUIPMENT, LUBRI- CANTS AND FUEL PURCHASED AND USED IN THEIR OPERATION. § 2. Paragraph a of subdivision 14 of section 305 of the education law, as amended by chapter 273 of the laws of 1999, is amended to read as follows: a. All contracts for the transportation of school children, all contracts to maintain school buses owned or leased by a school district that are used for the transportation of school children, all contracts for mobile instructional units, and all contracts to provide, maintain and operate cafeteria or restaurant service by a private food service management company shall be subject to the approval of the commissioner, who may disapprove a proposed contract if, in his OR HER opinion, the best interests of the district will be promoted thereby. Except as provided in paragraph e of this subdivision, all such contracts involv- ing an annual expenditure in excess of the amount specified for purchase contracts in the bidding requirements of the general municipal law shall be awarded to the lowest responsible bidder, which responsibility shall be determined by the board of education or the trustee of a district, with power hereby vested in the commissioner to reject any or all bids if, in his OR HER opinion, the best interests of the district will be promoted thereby and, upon such rejection of all bids, the commissioner shall order the board of education or trustee of the district to seek, obtain and consider new proposals. All proposals for such transporta- tion, maintenance, mobile instructional units, or cafeteria and restau- rant service shall be in such form as the commissioner may prescribe. Advertisement for bids shall be published in a newspaper or newspapers designated by the board of education or trustee of the district having general circulation within the district for such purpose. Such adver- tisement shall contain a statement of the time when and place where all bids received pursuant to such advertisement will be publicly opened and read either by the school authorities or by a person or persons desig- nated by them. All bids received shall be publicly opened and read at the time and place so specified. At least five days shall elapse between the first publication of such advertisement and the date so specified for the opening and reading of bids. The requirement for competitive bidding shall not apply to an award of a contract for the transportation of pupils or a contract for mobile instructional units, if such award is based on an evaluation of proposals in response to a request for proposals pursuant to paragraph e of this subdivision. The requirement for competitive bidding shall not apply to annual, biennial, or trienni- al extensions of a contract nor shall the requirement for competitive bidding apply to quadrennial or quinquennial year extensions of a contract involving transportation of pupils, maintenance of school buses S. 7509--B 89 or mobile instructional units secured either through competitive bidding or through evaluation of proposals in response to a request for proposals pursuant to paragraph e of this subdivision, when such exten- sions (1) are made by the board of education or the trustee of a district, under rules and regulations prescribed by the commissioner, and, (2) do not extend the original contract period beyond five years from the date cafeteria and restaurant service commenced thereunder and in the case of contracts for the transportation of pupils, for the main- tenance of school buses or for mobile instructional units, that such contracts may be extended, except that power is hereby vested in the commissioner, in addition to his OR HER existing statutory authority to approve or disapprove transportation or maintenance contracts, (i) to reject any extension of a contract beyond the initial term thereof if he OR SHE finds that amount to be paid by the district to the contractor in any year of such proposed extension fails to reflect any decrease in the regional consumer price index for the N.Y., N.Y.-Northeastern, N.J. area, based upon the index for all urban consumers (CPI-U) during the preceding twelve month period; and (ii) to reject any extension of a contract after ten years from the date transportation or maintenance service commenced thereunder, or mobile instructional units were first provided, if in his OR HER opinion, the best interests of the district will be promoted thereby. Upon such rejection of any proposed extension, the commissioner may order the board of education or trustee of the district to seek, obtain and consider bids pursuant to the provisions of this section; AND TO REJECT ANY EXTENSION OF A CONTRACT FOR TRANSPORTA- TION, OR NEW CONTRACT, IF HE OR SHE FINDS THAT THE AMOUNT TO BE PAID BY THE DISTRICT TO THE CONTRACTOR IN ANY YEAR OF SUCH PROPOSED CONTRACT FAILS TO REFLECT THE SAVINGS REALIZED FROM THE SALES TAX EXEMPTION ON SCHOOL BUSES, PARTS, EQUIPMENT, LUBRICANTS AND FUEL USED FOR SCHOOL PURPOSES PURSUANT TO PARAGRAPH FORTY-FIVE OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THE TAX LAW. The board of education or the trustee of a school district electing to extend a contract as provided herein, may, in its discretion, increase the amount to be paid in each year of the contract extension by an amount not to exceed the regional consumer price index increase for the N.Y., N.Y.-Northeastern, N.J. area, based upon the index for all urban consumers (CPI-U), during the preceding twelve month period, provided it has been satisfactorily established by the contractor that there has been at least an equivalent increase in the amount of his OR HER cost of operation, during the peri- od of the contract. § 3. This act shall take effect immediately; provided, however that section one of this act shall take effect on the first day of a quarter- ly sales tax period as set forth in subdivision (b) of section 1136 of the tax law, next succeeding December 1, 2018; and provided further, that such exemption shall only apply to contracts executed or extended after such date. Provided further, that the commissioner of taxation and finance may take any action necessary for the timely implementation of this act on or before the date on which it shall have become a law. PART OOO Section 1. Short title. This act shall be known and may be cited as the "education affordability act". § 2. The tax law is amended by adding a new section 44 to read as follows: S. 7509--B 90 § 44. EDUCATION AFFORDABILITY TAX CREDIT. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE SAME DEFI- NITION AS PROVIDED FOR IN ARTICLE TWENTY-FIVE OF THE EDUCATION LAW: "AUTHORIZED CONTRIBUTION"; "CONTRIBUTION"; "EDUCATIONAL PROGRAM"; "EDUCATIONAL SCHOLARSHIP ORGANIZATION"; "ELIGIBLE PUPIL"; "LOCAL EDUCATION FUND"; "NONPUBLIC SCHOOL"; "PUBLIC EDUCATION ENTITY"; "PUBLIC SCHOOL"; "QUALIFIED CONTRIBUTION"; "QUALIFIED EDUCATOR"; "QUALIFIED SCHOOL"; "SCHOLARSHIP"; AND "SCHOOL IMPROVEMENT ORGANIZATION". (B) ALLOWANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (L) OF THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS MADE DURING THE TAXABLE YEAR. (C) AMOUNT OF CREDIT. FOR TAXPAYERS WHOSE FEDERAL ADJUSTED GROSS INCOME IS LESS THAN THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE YEAR DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE AMOUNT OF THE CREDIT SHALL BE NINETY PERCENT OF THE TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT HUNDRED SEVENTY-FIVE THOUSAND DOLLARS. FOR TAXPAYERS WHOSE FEDERAL ADJUSTED GROSS INCOME IS GREATER THAN OR EQUAL TO THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE YEAR DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE AMOUNT OF CREDIT SHALL BE SEVENTY-FIVE PERCENT OF THE TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT HUNDRED SEVENTY-FIVE THOUSAND DOLLARS. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPORATION SHALL BE ALLOWED TO CLAIM ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNER- SHIP, LIMITED LIABILITY COMPANY OR S CORPORATION, PROVIDED THAT SUCH A TAXPAYER SHALL NOT CLAIM CREDIT IN EXCESS OF EIGHT HUNDRED SEVENTY-FIVE THOUSAND DOLLARS. (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE. THE COMMIS- SIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE AMOUNT OF AVAILABLE CREDIT FOR WHICH TAXPAYERS MAY APPLY PURSUANT TO THIS SECTION. SUCH RUNNING TOTAL SHALL BE UPDATED ON A DAILY BASIS. ADDITIONALLY, THE COMMISSIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A LIST OF PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS WHOSE APPROVAL TO ISSUE CERTIFICATES OF RECEIPT HAS BEEN REVOKED ALONG WITH THE DATE OF REVOCATION. (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO MAKING A CONTRIBUTION TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA- TION, THE TAXPAYER SHALL APPLY TO THE DEPARTMENT FOR A CONTRIBUTION AUTHORIZATION CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL S. 7509--B 91 BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT MAY ALLOW TAXPAYERS TO MAKE MULTIPLE APPLICATIONS ON THE SAME FORM, PROVIDED THAT EACH CONTRIBUTION LISTED ON SUCH APPLICATION SHALL BE TREATED AS A SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH APPLICA- TION. (F) CONTRIBUTION AUTHORIZATION CERTIFICATES. 1. ISSUANCE OF CERTIF- ICATES. THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF- ICATES IN TWO PHASES. IN PHASE ONE, WHICH BEGINS ON THE FIRST DAY OF JANUARY AND ENDS ON THE THIRTY-FIRST DAY OF JANUARY, THE COMMISSIONER SHALL ACCEPT APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. COMMENCING AFTER THE FIFTH DAY OF FEBRUARY, THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR WHICH APPLICATIONS HAVE BEEN RECEIVED DURING PHASE ONE EXCEEDS THE AMOUNT OF THE CREDIT CAP IN SUBDIVISION (H) OF THIS SECTION, THEN PHASE ONE OF THE CREDIT CAP APPLICATION SHALL BE ALLOCATED IN TWO STEPS. IN STEP ONE, THE ALLOCATION SHALL EQUAL THE CONTRIBUTION CAP DIVIDED BY THE TOTAL NUMBER OF APPLICATIONS FOR CONTRIBUTIONS, ROUNDED DOWN TO THE NEAREST CENT. EACH APPLICATION REQUESTING AN AMOUNT WHICH IS LESS THAN OR EQUAL TO THE ALLOCATION IN STEP ONE SHALL RECEIVE THE AMOUNT ON THEIR APPLICATION FOR CONTRIBUTION AND THE DIFFERENCE, WHICH SHALL BE REFERRED TO AS "EXCESS DISTRIBUTIONS" FOR THE PURPOSES OF THIS SUBDIVISION, SHALL BE AVAILABLE FOR ALLOCATION IN STEP TWO. EACH APPLICATION REQUESTING AN AMOUNT WHICH EXCEEDS THE ALLOCATION IN STEP ONE SHALL BE ALLOCATED CRED- ITS IN STEP TWO. IN STEP TWO, IF EXCESS DISTRIBUTIONS EQUAL ZERO THEN EACH APPLICATION SHALL RECEIVE THE ALLOCATION AMOUNT FROM STEP ONE, OTHERWISE EACH APPLICATION SHALL RECEIVE AN AMOUNT EQUAL TO THE SUM OF THE (I) THE ALLOCATION AMOUNT IN STEP ONE AND (II) A PRO RATA SHARE OF AGGREGATE EXCESS DISTRIBUTIONS BASED ON THE DIFFERENCE BETWEEN THE AMOUNT ON THEIR APPLICATION FOR CONTRIBUTION AND THE ALLOCATION IN STEP ONE. FOR THE PURPOSES OF THIS SUBDIVISION, MULTIPLE APPLICATIONS BY THE SAME TAXPAYER SHALL BE TREATED AS ONE APPLICATION. IF THE CREDIT CAP IS NOT EXCEEDED, PHASE TWO COMMENCES ON FEBRUARY TWENTIETH AND ENDS ON OCTOBER THIRTY-FIRST. DURING PHASE TWO THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIFICATES ON A FIRST-COME FIRST SERVE BASIS BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S APPLI- CATION FOR SUCH CERTIFICATE. CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN THE TWENTIETH DAY OF FEBRUARY. CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE MAILED WITHIN FIVE DAYS OF RECEIPT OF SUCH APPLICATIONS. 2. CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION AUTHORIZATION CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE WAS ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED ON THE CERTIFICATE MUST BE MADE, WHICH SHALL BE NO LATER THAN DECEMBER THIRTY- FIRST OF THE YEAR FOR WHICH THE CONTRIBUTION AUTHORIZATION CERTIFICATE WAS ISSUED, (III) THE AMOUNT OF AUTHORIZED CONTRIBUTION, (IV) THE CERTIFICATE NUMBER, (V) THE TAXPAYER'S NAME AND ADDRESS, (VI) THE NAME AND ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA- TION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION TO WHICH THE TAXPAYER MAY MAKE THE AUTHORIZED CONTRIBUTION, AND (VII) ANY OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY. 3. NOTIFICATION OF THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE. UPON THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIF- ICATE TO A TAXPAYER, THE COMMISSIONER SHALL NOTIFY THE PUBLIC EDUCATION S. 7509--B 92 ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCA- TIONAL SCHOLARSHIP ORGANIZATION OF THE ISSUANCE OF SUCH CONTRIBUTION AUTHORIZATION CERTIFICATE. SUCH NOTIFICATION SHALL INCLUDE (I) THE TAXPAYER'S NAME AND ADDRESS, (II) THE DATE SUCH CERTIFICATE WAS ISSUED, (III) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE NOTIFICATION MUST BE MADE BY THE TAXPAYER, (IV) THE AMOUNT OF THE AUTHORIZED CONTRIBUTION, (V) THE CONTRIBUTION AUTHORIZATION CERTIF- ICATE'S CERTIFICATE NUMBER, AND (VI) ANY OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY. (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF RECEIPT FOR ANY CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION HAS BEEN APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF RECEIPT FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA- TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION HAS RECEIVED NOTICE FROM THE DEPARTMENT THAT THE DEPARTMENT ISSUED A CONTRIBUTION AUTHORIZATION CERTIFICATE TO THE TAXPAYER FOR SUCH CONTRIBUTION. 2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER NO LATER THAN THE DATE BY WHICH SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE MADE, SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION, ISSUE TO THE TAXPAYER A CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE TAXPAYER CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE AMOUNT LISTED ON THE TAXPAYER'S CONTRIBUTION AUTHORIZATION CERTIFICATE, THE TAXPAYER SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION. 3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT SHALL STATE (I) THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION, (II) THE TAXPAYER'S NAME AND ADDRESS, (III) THE DATE FOR EACH CONTRIBUTION, (IV) THE AMOUNT OF EACH CONTRIBUTION AND THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE TOTAL AMOUNT OF CONTRIBUTIONS, (VI) CERTIFICATE OF RECEIPT NUMBER AND (VII) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY. 4. NOTIFICATION TO THE DEPARTMENT FOR THE ISSUANCE OF A CERTIFICATE OF RECEIPT. UPON THE ISSUANCE OF A CERTIFICATE OF RECEIPT, THE ISSUING PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA- TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT WITH NOTIFICATION OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. 5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA- TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF THIS SECTION REGARDING THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE TO A TAXPAYER SHALL, WITHIN THIRTY DAYS OF THE EXPIRATION S. 7509--B 93 DATE FOR SUCH AUTHORIZED CONTRIBUTION, PROVIDE NOTIFICATION TO THE DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB- UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. 6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF THE DISCOV- ERY OF THE FAILURE OF ANY PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT PROGRAM, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION TO COMPLY WITH THE NOTIFICATION REQUIREMENTS PRESCRIBED BY PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE OF COMPLIANCE FAILURE TO SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION. SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION SHALL HAVE THIRTY DAYS FROM THE DATE OF SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARA- GRAPHS FOUR AND FIVE OF THIS SUBDIVISION. SUCH PERIOD MAY BE EXTENDED FOR AN ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY, PROGRAM, FUND, OR ORGANIZATION. UPON THE EXPIRATION OF PERIOD FOR COMPLIANCE SET FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL NOTIFY THE COMMISSIONER OF EDUCATION THAT SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION FAILED TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION. (H) CREDIT CAP. THE MAXIMUM PERMITTED CREDITS UNDER THIS SECTION AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR TWO THOUSAND NINETEEN SHALL BE ONE HUNDRED FIFTY MILLION DOLLARS. IN CALENDAR YEAR TWO THOUSAND TWENTY, THE MAXIMUM PERMITTED CREDITS UNDER THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWENTY-FIVE MILLION DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION. FOR CALENDAR YEAR TWO THOUSAND TWENTY-ONE AND EACH CALENDAR YEAR THEREAFTER, THE MAXIMUM PERMITTED CREDITS AVAILABLE TO ALL TAXPAYERS SHALL BE THREE HUNDRED MILLION DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION. THE MAXIMUM PERMITTED CREDITS UNDER THIS SECTION FOR QUALIFIED CONTRIBUTIONS SHALL BE ALLO- CATED FIFTY PERCENT TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, AND LOCAL EDUCATION FUNDS AND FIFTY PERCENT TO EDUCA- TIONAL SCHOLARSHIP ORGANIZATIONS. (I) ADDITIONS TO CREDIT CAP. UNISSUED CERTIFICATES OF RECEIPT. ANY AMOUNTS FOR WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE OF A CERTIFICATE OF RECEIPT SHALL BE ADDED TO THE CAP PRESCRIBED IN SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR. (J) REGULATIONS. THE COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE AND ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE IMPLEMEN- TATION OF THIS SECTION. (K) WRITTEN REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR EACH CALEN- DAR YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER AND THE COMMISSIONER OF EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE EDUCATION AFFORD- ABILITY TAX CREDIT. SUCH REPORT SHALL CONTAIN INFORMATION FOR ARTICLES NINE-A AND TWENTY-TWO OF THIS CHAPTER, RESPECTIVELY, REGARDING: (I) THE NUMBER OF APPLICATIONS RECEIVED; (II) THE NUMBER OF AND AGGREGATE VALUE OF THE CONTRIBUTION AUTHORIZATION CERTIFICATES ISSUED FOR CONTRIBUTIONS TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY; (III) THE GEOGRAPHICAL DISTRIBUTION BY COUNTY OF (A) THE APPLICATIONS FOR CONTRIB- UTION AUTHORIZATION CERTIFICATES, DISTRIBUTION BY COUNTY OF (B) THE S. 7509--B 94 PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS LISTED ON THE ISSUED CONTRIBUTION AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING GEOGRAPHICAL DISTRIBUTION BY COUNTY, OF THE NUMBER OF ELIGIBLE PUPILS THAT RECEIVED SCHOLARSHIPS, THE NUMBER OF QUALIFIED SCHOOLS ATTENDED BY ELIGIBLE PUPILS THAT RECEIVED SUCH SCHOLARSHIPS, AND THE AVERAGE VALUE OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE PUPILS. THE COMMISSIONER AND DESIGNATED EMPLOYEES OF THE DEPARTMENT, THE COMMISSION- ER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE STATE EDUCATION DEPART- MENT, SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMA- TION REGARDING THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS THAT APPLIED FOR APPROVAL TO BE AUTHORIZED TO RECEIVE QUALIFIED CONTRIBUTIONS; AND THE PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO ISSUE CERTIFICATES OF RECEIPT, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM APPLICATION FORMS AND REPORTS SUBMITTED TO THE COMMISSIONER OF EDUCATION. (L) 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 53; 2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (CCC). § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 23 to read as follows: (23) THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT TO SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE FOR WHICH A CREDIT IS CLAIMED PURSUANT TO SUBDIVISION FIFTY-THREE OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE. § 4. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: 53. EDUCATION AFFORDABILITY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-FOUR OF THIS CHAPTER, 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 THAT YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPH (D) OF SUBDIVI- SION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR QUALIFIED CONTRIB- UTIONS FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. § 5. 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) EDUCATION AFFORDABILITY AMOUNT OF CREDIT UNDER TAX CREDIT UNDER SUBSECTION (CCC) SUBDIVISION FIFTY-THREE OF SECTION TWO HUNDRED TEN-B § 6. Section 606 of the tax law is amended by adding two new subsections (w) and (w-1) to read as follows: (W) HOME-BASED INSTRUCTIONAL MATERIALS CREDIT. (1) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE PURCHASE OF INSTRUCTIONAL MATERIALS APPROVED BY THE EDUCATION DEPARTMENT FOR USE IN NON-PUBLIC HOME-BASED EDUCATIONAL PROGRAMS; S. 7509--B 95 PROVIDED, THAT THE AMOUNT OF CREDIT CLAIMED DOES NOT EXCEED THE LESSER OF TWO HUNDRED DOLLARS OR ONE HUNDRED PERCENT OF THE COST OF SUCH PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN. (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH 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. (W-1) INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. (1) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, A TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO THE LESSER OF THE AMOUNT PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS AND SUPPLIES, OR TWO HUNDRED DOLLARS; PROVIDED THAT THE TAXPAYER IS A TEACHER OR INSTRUCTOR IN A QUALIFIED SCHOOL, AS DEFINED IN SECTION FORTY-FOUR OF THIS CHAPTER, FOR AT LEAST NINE HUNDRED HOURS DURING A SCHOOL YEAR. FOR PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE USED IN THE CLASSROOM IN ANY QUALIFIED SCHOOL. (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN. (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH 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. § 7. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) EDUCATION AFFORDABILITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION FORTY-FOUR OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY QUALIFIED CONTRIBUTIONS FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. § 8. Subsection (c) of section 615 of the tax law is amended by adding a new paragraph 10 to read as follows: (10) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR CONTRIBUTIONS MADE FOR WHICH A TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE. § 9. Section 606 of the tax law is amended by adding a new subsection (iii) to read as follows: (III) HELPING OPEN OPPORTUNITIES TO LEARN TAX CREDIT. (1) GENERAL. A RESIDENT LOW AND MIDDLE INCOME TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "RESIDENT LOW AND MIDDLE INCOME TAXPAYER" SHALL MEAN A TAXPAYER WHO IS A FULL-YEAR RESIDENT OF THIS STATE AND WHOSE FEDERAL TAXABLE INCOME IS EQUAL TO OR LESS THAN SEVEN HUNDRED TWENTY PERCENT OF THE S. 7509--B 96 FEDERAL POVERTY GUIDELINES, AS PROMULGATED ANNUALLY BY THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES, FOR THE TAXABLE YEAR FOR WHICH THIS CREDIT IS CLAIMED. (B) "QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" SHALL MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR ATTENDANCE OF AN ELIGI- BLE STUDENT AT A QUALIFIED SCHOOL, AS DEFINED IN SECTION FORTY-FOUR OF THIS CHAPTER. PROVIDED, HOWEVER, THAT ANY TUITION PAYMENTS MADE FOR SUCH ELIGIBLE STUDENT PURSUANT TO THE RECEIPT OF FINANCIAL AID OR ONE OR MORE SCHOLARSHIPS SHALL BE EXCLUDED FROM THE DEFINITION OF THE TERM "QUALI- FIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" FOR SUCH ELIGIBLE STUDENT. (C) "ELIGIBLE STUDENT" SHALL MEAN ANY DEPENDENT OF THE TAXPAYER WITH RESPECT TO WHOM THE TAXPAYER IS ALLOWED AN EXEMPTION UNDER SECTION SIX HUNDRED SIXTEEN OF THIS ARTICLE FOR THE TAXABLE YEAR WHO IS ENROLLED IN, AND FOR WHOM QUALIFIED PRIMARY AND SECONDARY EDUCATION TUITION EXPENSES HAVE BEEN PAID FOR, KINDERGARTEN OR GRADE ONE THROUGH TWELVE IN A QUALI- FIED SCHOOL. (3) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT THAT A RESIDENT LOW AND MIDDLE INCOME TAXPAYER MAY CLAIM FOR THE QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES PAID FOR EACH ELIGIBLE STUDENT SHALL EQUAL THE LESSER OF TWELVE PERCENT OF THE TOTAL PER PUPIL STATE PUBLIC SCHOOL EXPENDITURES OR FIFTEEN PERCENT OF THE QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR SUCH ELIGIBLE STUDENT. THE TOTAL STATE PUBLIC SCHOOL EXPENDITURES SHALL EQUAL THE SCHOOL AID, AS REPORTED IN THE STATE ENACTED BUDGET FINANCIAL PLAN FOR THE TAXABLE YEAR IN WHICH THE SCHOOL YEAR BEGAN, DIVIDED BY THE TOTAL NUMBER OF STUDENTS ENROLLED IN KINDERGARTEN AND GRADES ONE THROUGH TWELVE AT PUBLIC SCHOOLS IN THIS STATE AS PUBLISHED BY THE DEPARTMENT OF EDUCATION FOR SUCH TAXABLE YEAR. (4) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH 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. (5) HUSBAND AND WIFE. IN THE CASE OF A HUSBAND AND WIFE WHO FILE A JOINT FEDERAL RETURN, BUT WHO ARE REQUIRED TO DETERMINE THEIR NEW YORK TAXES SEPARATELY, THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION MAY BE APPLIED AGAINST THE TAX IMPOSED OF EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT. § 10. The education law is amended by adding a new article 25 to read as follows: ARTICLE 25 EDUCATION AFFORDABILITY PROGRAM SECTION 1209. SHORT TITLE. 1210. DEFINITIONS. 1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1212. APPLICATIONS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1213. APPLICATION APPROVAL. 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1215. RECORDKEEPING. 1216. JOINT ANNUAL REPORT. 1217. COMMISSIONER; POWERS. § 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "EDUCATION AFFORDABILITY PROGRAM". S. 7509--B 97 § 1210. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "AUTHORIZED CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAYER. 2. "CONTRIBUTION" MEANS A DONATION PAID BY CASH, CHECK, ELECTRONIC FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD MADE BY THE TAXPAYER DURING THE TAX YEAR. 3. "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC PROGRAM OF A PUBLIC SCHOOL THAT ENHANCES THE CURRICULUM, OR PROVIDES OR EXPANDS A PRE-KINDERGARTEN PROGRAM OR AN AFTER-SCHOOL PROGRAM TO THE PUBLIC SCHOOL. FOR PURPOSES OF THIS DEFINITION, THE INSTRUCTION, MATERIALS, PROGRAMS OR OTHER ACTIV- ITIES OFFERED BY OR THROUGH AN EDUCATIONAL PROGRAM MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING FEATURES: (A) INSTRUCTION OR MATERIALS PROMOTING HEALTH, PHYSICAL EDUCATION, AND FAMILY AND CONSUMER SCIENCES; LITERARY, PERFORMING AND VISUAL ARTS; MATHEMATICS, SOCIAL STUDIES, TECH- NOLOGY AND SCIENTIFIC ACHIEVEMENT; (B) INSTRUCTION OR PROGRAMMING TO MEET THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH DISABILI- TIES, INCLUDING TUTORING OR COUNSELING; OR (C) USE OF SPECIALIZED INSTRUCTIONAL MATERIALS, INSTRUCTORS OR INSTRUCTION NOT PROVIDED BY A PUBLIC SCHOOL. 4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI- TY WHICH (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (B) COMMITS FOR THE EXPENDITURE OF AT LEAST NINETY PERCENT OF THE REVENUE FROM QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS FOR SCHOLARSHIPS, (C) DEPOS- ITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALI- FIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE ORGANIZA- TION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND (D) PROVIDES SCHOLARSHIPS TO ELIGIBLE PUPILS FOR USE AT NO FEWER THAN THREE QUALIFIED SCHOOLS. 5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (A) IS A RESIDENT OF THIS STATE, (B) IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION THIRTY- TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR BEFORE DECEMBER FIRST OF THE YEAR IN WHICH THEY ARE ENROLLED IN A PRE-KINDER- GARTEN PROGRAM, (C) ATTENDS OR IS ABOUT TO ATTEND A QUALIFIED SCHOOL, AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS INCOME OF FIVE HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER, FOR HOUSE- HOLDS WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL SHALL BE INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD IN EXCESS OF TWO, NOT TO EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS. 6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (B) IS ESTABLISHED FOR THE PURPOSE OF SUPPORTING AN EDUCATIONAL PROGRAM IN AT LEAST ONE PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT, (C) USES AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS TO SUPPORT THE PUBLIC SCHOOL OR SCHOOLS OR PUBLIC SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS BEEN ESTABLISHED TO SUPPORT, AND (D) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE. 7. "NONPUBLIC SCHOOL" MEANS ANY NOT-FOR-PROFIT PRE-KINDERGARTEN PROGRAM OR ELEMENTARY, SECONDARY SECTARIAN OR NONSECTARIAN SCHOOL LOCATED IN THIS STATE, OTHER THAN A PUBLIC SCHOOL, THAT IS PROVIDING S. 7509--B 98 INSTRUCTION AT ONE OR MORE LOCATIONS TO A STUDENT IN ACCORDANCE WITH SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER. 8. "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC SCHOOL DISTRICT, PROVIDED THAT SUCH PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. 9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN THIS STATE GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION OR CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAPTER. 10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY A TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA- TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT IS LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER AND FOR WHICH THE TAXPAYER HAS RECEIVED A CERTIFICATE OF RECEIPT FROM SUCH ENTITY, FUND, OR ORGANIZATION. A CONTRIBUTION DOES NOT QUALIFY IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN ENTITY OR ORGANIZATION FOR THE DIRECT BENEFIT OF ANY PARTICULAR OR SPEC- IFIED STUDENT. 11. "QUALIFIED EDUCATOR" MEANS AN INDIVIDUAL WHO IS A TEACHER OR INSTRUCTOR IN A QUALIFIED SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING A SCHOOL YEAR. 12. "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NONPUBLIC SCHOOL. 13. "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP WHICH PROVIDES A TUITION GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL IN AN AMOUNT NOT TO EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH ELIGIBLE PUPIL OR HIS OR HER PARENT, PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL IN A PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS NOT A RESIDENT, THE AMOUNT OF THE EDUCATIONAL SCHOLARSHIP AWARDED MAY NOT EXCEED THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION FOUR OF SECTION THIRTY-TWO HUNDRED TWO OF THIS CHAPTER LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH ELIGIBLE PUPIL OR HIS OR HER PARENT, PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S TUITION, BUT ONLY IF THE PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION. 14. "SCHOOL IMPROVEMENT ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) USES AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIB- UTIONS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY MAKING CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS STATE OR PROVIDING EDUCATIONAL PROGRAMS TO, OR IN CONJUNCTION WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN THIS STATE, (III) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND (IV) IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. SUCH ENTITY MAY ALLOW THE TAXPAYER TO CHOOSE TO DONATE TO A PROGRAM, S. 7509--B 99 PROJECT OR INITIATIVE IDENTIFIED BY A QUALIFIED EDUCATOR FOR USE IN A PUBLIC SCHOOL. § 1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS. ALL PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS SHALL BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT PROVIDED, THAT A PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED IF EITHER (A) THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT FAILS TO DEPOSIT AND HOLD QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM THE SCHOOL OR SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, OR (B) THE COMMISSIONER HAS REVOKED SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT PURSUANT TO SECTION TWELVE HUNDRED FOURTEEN OF THIS ARTICLE. 2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA- TIONS AND LOCAL EDUCATION FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN APPLICATION PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS ARTICLE AND RECEIVING APPROVAL PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE. § 1212. APPLICATIONS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZA- TION, AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE COMMISSIONER FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER; PROVIDED THAT SUCH APPLICA- TION SHALL INCLUDE: (A) SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLAR- SHIP ORGANIZATION HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARA- GRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTER- NAL REVENUE CODE; (B) THE MOST RECENT ANNUAL FINANCIAL AUDIT, WHICH SHALL BE COMPLETED BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT AND A LIST OF NAMES AND ADDRESSES OF ALL MEMBERS OF THE GOVERNING BOARD OF THE SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION; AND (C) AN EDUCATIONAL SCHOLARSHIP ORGANIZA- TION SHALL PROVIDE CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE STUDENTS. NEITHER THE COMMISSIONER OR THE DEPARTMENT SHALL REQUIRE ANY OTHER INFORMATION FOR SUCH APPLICATION EXCEPT AS AUTHORIZED IN THIS ARTICLE OR BY SECTION FORTY-FOUR OF THE TAX LAW. § 1213. APPLICATION APPROVAL. THE COMMISSIONER SHALL REVIEW EACH APPLICATION TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE. APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE WITHIN SIXTY DAYS OF RECEIPT OF SUCH APPLICATION. § 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE, MAY REVOKE THE APPROVAL OF A SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A FINDING THAT SUCH ORGANIZATION, FUND, SCHOOL OR SCHOOL DISTRICT HAS VIOLATED THIS ARTICLE OR SECTION FORTY-FOUR OF THE TAX LAW. THESE VIOLATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING: (A) FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE OR SECTION FORTY- FOUR OF THE TAX LAW, (B) THE FAILURE TO MAINTAIN FULL AND ADEQUATE RECORDS WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS, (C) THE FAILURE TO SUPPLY SUCH RECORDS TO THE COMMISSIONER OR THE DEPARTMENT OF TAXATION AND FINANCE WHEN REQUESTED BY THE DEPARTMENT OR THE DEPARTMENT OF TAXATION AND FINANCE, OR (D) THE FAILURE TO PROVIDE NOTICE TO THE DEPARTMENT OF TAXATION AND FINANCE OF THE ISSUANCE OR NONISSUANCE OF S. 7509--B 100 CERTIFICATES OF RECEIPT PURSUANT TO SECTION FORTY-FOUR OF THE TAX LAW; PROVIDED HOWEVER, THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSU- ANT TO THIS SECTION BASED UPON A VIOLATION OF THE TAX LAW UNLESS THE COMMISSIONER OF TAXATION AND FINANCE AGREES THAT REVOCATION IS WARRANTED; AND PROVIDED FURTHER THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSUANT TO THIS SECTION WHEN THE FAILURE TO COMPLY IS DUE TO CLERICAL ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISREGARD FOR THE LAW. WITHIN FIVE DAYS OF THE DETERMINATION REVOKING APPROVAL, THE COMMISSION- ER SHALL PROVIDE NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLAR- SHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO THE DEPARTMENT OF TAXATION AND FINANCE. § 1215. RECORDKEEPING. EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCA- TIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND PUBLIC SCHOOL DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE OF RECEIPT SHALL MAINTAIN RECORDS INCLUDING (A) NOTIFICATIONS RECEIVED FROM THE DEPARTMENT OF TAXATION AND FINANCE, (B) NOTIFICATIONS MADE TO THE DEPARTMENT OF TAXATION AND FINANCE, (C) COPIES OF QUALIFIED CONTRIB- UTIONS RECEIVED, (D) COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIB- UTIONS, (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT, (F) ANNUAL FINAN- CIAL STATEMENTS, (G) IN THE CASE OF SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND LOCAL EDUCATION FUNDS, THE APPLICATION SUBMITTED PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS ARTICLE AND THE APPROVAL ISSUED BY THE COMMISSIONER, AND (H) ANY OTHER INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMISSIONER. § 1216. JOINT ANNUAL REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER, JOINTLY, SHALL SUBMIT A WRITTEN REPORT AS PROVIDED IN SUBDIVISION (K) OF SECTION FORTY-FOUR OF THE TAX LAW. § 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS SECTION. THE COMMISSIONER SHALL MAKE ANY APPLICATION REQUIRED TO BE FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE. § 11. The education law is amended by adding a new section 1503-a to read as follows: § 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND DONATIONS. 1. ALL SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS OF A GENERAL LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS, DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME. 2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER GENERAL OR SPECIAL LAW TO THE CONTRARY, THE RECEIPT OF SUCH GIFTS, DONATIONS, CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED THERE- FROM, SHALL BE DISREGARDED FOR THE PURPOSES OF ALL APPORTIONMENTS, COMPUTATIONS, AND DETERMINATIONS OF STATE AID. § 12. Severability. If any provision of this act or the application thereof to any person or circumstances 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. § 13. This act shall take effect immediately and shall apply to taxa- ble years beginning on and after January 1, 2019. PART PPP S. 7509--B 101 Section 1. Subdivision 41 of section 1301 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013, is amended and a new subdivision 43 is added to read as follows: 41. "Table game". A game, INCLUDING DEALER-CONTROLLED ELECTRONIC TABLE GAMES, other than a slot machine, which is authorized by the commission to be played in a gaming facility. 43. "DEALER-CONTROLLED ELECTRONIC TABLE GAME". A TABLE GAME OPERATED BY A LIVE DEALER IN WHICH THE OUTCOME IS DETERMINED BY THE ACTIONS OF THE DEALER, THAT USES ELECTRONICS AS PART OF THE GAME'S OPERATION IN CONNECTION WITH THE COLLECTION AND PAYOFF OF WAGERS, BUT NOT TO DETER- MINE THE GAME OUTCOME. § 2. Section 1348 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: § 1348. Machine and table fees. In addition to any other tax or fee imposed by this article, there shall be imposed an annual license fee of five hundred dollars for each slot machine and table approved by the commission for use by a gaming licensee at a gaming facility; provided, however, that not sooner than five years after award of an original gaming license, the commission may annually adjust the fee for inflation. The fee shall be imposed as of July first of each year for all approved slot machines and [tables] TABLE GAMES, INCLUDING DEALER- CONTROLLED ELECTRONIC TABLE GAMES, on that date and shall be assessed on a pro rata basis for any slot machine or table, INCLUDING DEALER-CONT- ROLLED ELECTRONIC TABLE GAMES, approved for use thereafter. Such assessed fees shall be deposited into the commercial gaming revenue fund established pursuant to section one thousand three hundred fifty-two of this article. § 3. This act shall take effect immediately. PART QQQ Section 1. Paragraph 3 of subdivision i of section 1617-a of the tax law, as amended by section 1 of part SS of chapter 60 of the laws of 2016, is amended to read as follows: (3) For each video lottery facility, the annual value of the free play allowance credits authorized for use by the operator pursuant to this subdivision shall not exceed an amount equal to fifteen percent of the total amount wagered on video lottery games after payout of prizes PROVIDED, HOWEVER, IF A VIDEO LOTTERY FACILITY IS LOCATED IN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI- MUTUEL WAGERING AND BREEDING LAW, AND THE NEAREST COMMERCIAL CASINO, AS DEFINED BY SECTION THIRTEEN HUNDRED ONE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, IS GIVEN A GREATER THAN FIFTEEN PERCENT FREE PLAY ALLOWANCE, THE VIDEO LOTTERY FACILITY SHALL RECEIVE THE SAME PERCENTAGE OF FREE PLAY ALLOWANCE CREDITS AS ALLOWED TO THE NEAREST COMMERCIAL CASINO. The gaming commission shall establish procedures to assure that free play allowance credits do not exceed such amount. § 2. This act shall take effect immediately. PART RRR Section 1. The racing, pari-mutuel wagering and breeding law is amended by adding a new article 15 to read as follows: ARTICLE 15 INTERACTIVE GAMING S. 7509--B 102 SECTION 1500. LEGISLATIVE FINDINGS AND PURPOSE. 1501. DEFINITIONS. 1502. AUTHORIZATION. 1503. REQUIRED SAFEGUARDS/MINIMUM STANDARDS. 1504. SCOPE OF LICENSING REVIEW. 1505. STATE TAX. 1506. DISPOSITION OF TAXES. § 1500. LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE HEREBY FINDS AND DECLARES THAT: 1. UNDER THE NEW YORK PENAL LAW A PERSON ENGAGES IN GAMBLING WHEN HE OR SHE STAKES OR RISKS SOMETHING OF VALUE UPON THE OUTCOME OF A CONTEST OF CHANCE OR A FUTURE CONTINGENT EVENT NOT UNDER HIS OR HER CONTROL OR INFLUENCE, UPON AN AGREEMENT OR UNDERSTANDING THAT HE OR SHE WILL RECEIVE SOMETHING OF VALUE IN THE EVENT OF A CERTAIN OUTCOME. 2. A CONTEST OF CHANCE IS DEFINED AS ANY CONTEST, GAME, GAMING SCHEME OR GAMING DEVICE IN WHICH THE OUTCOME DEPENDS IN A MATERIAL DEGREE UPON AN ELEMENT OF CHANCE, NOTWITHSTANDING THAT SKILL OF THE CONTESTANTS MAY ALSO BE A FACTOR THEREIN. (SUBDIVISION 1 OF SECTION 225.00 OF THE PENAL LAW). THUS, GAMES OF CHANCE MAY INVOLVE SOME SKILL, BUT IN THOSE GAMES THE LEVEL OF SKILL DOES NOT DETERMINE THE OUTCOME REGARDLESS OF THE DEGREE OF SKILL EMPLOYED. SEE PEOPLE V. TURNER, 165 MISC. 2D 222, 224, 629 N.Y.S.2D 661, 662 (CRIM. CT. 1995). ON THE OTHER HAND, WHERE A CONTEST PITS THE SKILL LEVELS OF THE PLAYERS AGAINST EACH OTHER, NEW YORK COURTS HAVE FOUND A GAME TO BE ONE OF SKILL RATHER THAN CHANCE. SEE PEOPLE V. HUNT, 162 MISC. 2D 70, 72, 616 N.Y.S.2D 168, 170 (CRIM. CT. 1994) ("PLAYED FAIRLY, SKILL RATHER THAN CHANCE IS THE MATERIAL COMPO- NENT OF THREE-CARD MONTE."); 3. POKER IN MANY INSTANCES HAS BEEN DEFINED AS A GAME OF SKILL AND A NEW YORK FEDERAL COURT IN U.S. V. DICRISTINA, 886 F. SUPP. 2D 164, 224, ASSESSED THAT UNDER FEDERAL LAW POKER WAS PREDOMINANTLY A GAME OF SKILL; 4. NEW YORK COURTS HAVE INTERPRETED NEW YORK LAW TO APPLY A MORE RIGOROUS TEST IN IDENTIFYING A "CONTEST OF CHANCE" THAN IS APPLIED BY MOST STATES IN THIS NATION AND THE COURTS HAVE FOUND THAT WHERE A CONTEST PITS THE SKILL LEVELS OF THE PLAYERS AGAINST EACH OTHER, THOSE GAMES ARE GAMES OF SKILL AND NOT GAMES OF CHANCE. FURTHERMORE, THE COURTS HAVE NOT LIMITED THE LEGISLATURE'S ABILITY TO DETERMINE THAT CERTAIN FORMS OF POKER SHOULD FALL OUTSIDE THE GENERAL DEFINITION OF GAMBLING SINCE THOSE GAMES ARE GAMES OF SKILL; 5. TEXAS HOLD'EM POKER INVOLVES TWO CARDS DEALT FACE DOWN TO EACH PLAYER AND THEN FIVE COMMUNITY CARDS PLACED FACE-UP BY THE DEALER, A SERIES OF THREE, THEN TWO ADDITIONAL SINGLE CARDS, WITH PLAYERS DETER- MINING WHETHER TO CHECK, BET, RAISE OR FOLD AFTER EACH DEAL. OMAHA HOLD'EM POKER IS A SIMILAR GAME, IN WHICH EACH PLAYER IS DEALT FOUR CARDS AND MAKES HIS OR HER BEST HAND USING EXACTLY TWO OF THEM, PLUS EXACTLY THREE OF THE FIVE COMMUNITY CARDS. THESE GAMES ARE CONSIDERED TO BE COMPLEX FORMS OF POKER WHICH INVOLVE PLAYER STRATEGY AND DECISION- MAKING AND WHICH PIT THE SKILL LEVELS OF THE PLAYERS AGAINST EACH OTHER. AS GAMES OF SKILL, THESE FORMS OF POKER DO NOT FALL UNDER THE DEFINITION OF GAMBLING AS PROHIBITED BY THE PENAL LAW; AND 6. THE LEGISLATURE FURTHER FINDS THAT AS THE INTERNET HAS BECOME AN INTEGRAL PART OF SOCIETY, AND INTERNET POKER A MAJOR FORM OF ENTER- TAINMENT FOR MANY CONSUMERS, ANY INTERACTIVE GAMING ENFORCEMENT AND REGULATORY STRUCTURE MUST BEGIN FROM THE BEDROCK PREMISE THAT PARTIC- IPATION IN A LAWFUL AND LICENSED GAMING INDUSTRY IS A PRIVILEGE AND NOT A RIGHT, AND THAT REGULATORY OVERSIGHT IS INTENDED TO SAFEGUARD THE S. 7509--B 103 INTEGRITY OF THE GAMES AND PARTICIPANTS AND TO ENSURE ACCOUNTABILITY AND THE PUBLIC TRUST. § 1501. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "AUTHORIZED GAME" MEANS OMAHA HOLD'EM AND TEXAS HOLD'EM POKER, AS WELL AS ANY OTHER POKER GAME THAT THE COMMISSION DETERMINES IS THE MATE- RIAL EQUIVALENT OF EITHER OF THOSE, WHETHER IN A CASH GAME OR TOURNA- MENT. 2. "AUTHORIZED PARTICIPANTS" MEANS PERSONS WHO ARE EITHER PHYSICALLY PRESENT IN THIS STATE WHEN PLACING A WAGER OR WHO OTHERWISE ARE PERMIT- TED BY APPLICABLE LAW, AS DETERMINED BY THE COMMISSION, TO PLACE A WAGER. THE INTERMEDIATE ROUTING OF ELECTRONIC DATA IN CONNECTION WITH INTERACTIVE GAMING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS IN WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE. 3. "CORE FUNCTION" MEANS ANY OF THE FOLLOWING: (A) THE MANAGEMENT, ADMINISTRATION OR CONTROL OF WAGERS ON INTERACTIVE GAMING; (B) THE MANAGEMENT, ADMINISTRATION OR CONTROL OF THE GAMES WITH WHICH THOSE WAGERS ARE ASSOCIATED; OR (C) THE DEVELOPMENT, MAINTENANCE, PROVISION OR OPERATION OF AN INTERACTIVE GAMING PLATFORM. 4. "COMMISSION" MEANS THE NEW YORK STATE GAMING COMMISSION. 5. "COVERED ASSET" MEANS ANY OF THE FOLLOWING CATEGORIES OF ASSETS IF USED IN CONNECTION WITH THE KNOWING AND WILLFUL ACCEPTANCE OF ANY WAGER FROM PERSONS LOCATED IN THE UNITED STATES OF ANY FORM OF INTERACTIVE GAMING (INCLUDING BUT NOT LIMITED TO POKER) AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SIX, THAT HAS NOT BEEN AFFIRMATIVELY AUTHORIZED BY LAW OF THE UNITED STATES OR OF EACH STATE IN WHICH PERSONS MAKING SUCH WAGER WERE LOCATED: (A) ANY TRADEMARK, TRADE NAME, SERVICE MARK OR SIMILAR INTELLECTUAL PROPERTY THAT WAS USED TO IDENTIFY ANY ASPECT OF THE INTER- NET WEBSITE OR OF THE OPERATOR OFFERING THE WAGERS OR GAMES TO ITS PATRONS; (B) ANY DATABASE OR CUSTOMER LIST OF INDIVIDUALS RESIDING IN THE UNITED STATES WHO PLACED SUCH WAGERS; (C) ANY DERIVATIVE OF A DATA- BASE OR CUSTOMER LIST DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION; OR (D) AN ASSET USED TO PROVIDE A CORE FUNCTION. 6. "DIVISION" MEANS THE DIVISION OF GAMING, ESTABLISHED UNDER PARA- GRAPH (C) OF SUBDIVISION TWO OF SECTION ONE HUNDRED THREE OF THIS CHAP- TER. 7. "INTERACTIVE GAMING" MEANS THE CONDUCT OF GAMES THROUGH THE USE OF THE INTERNET OR OTHER COMMUNICATIONS TECHNOLOGY THAT ALLOWS A PERSON, UTILIZING MONEY, CHECKS, ELECTRONIC CHECKS, ELECTRONIC TRANSFERS OF MONEY, CREDIT CARDS, DEBIT CARDS OR ANY OTHER INSTRUMENTALITY, TO TRANS- MIT TO A COMPUTER INFORMATION TO ASSIST IN THE PLACING OF A WAGER AND CORRESPONDING INFORMATION RELATED TO THE DISPLAY OF THE GAME, GAME OUTCOMES OR OTHER SIMILAR INFORMATION. THE TERM DOES NOT INCLUDE THE CONDUCT OF (A) NON-GAMBLING GAMES THAT DO NOT OTHERWISE REQUIRE A LICENSE UNDER STATE OR FEDERAL LAW; OR (B) GAMES THAT OCCUR ENTIRELY AMONG PARTICIPANTS WHO ARE LOCATED ON A LICENSED CASINO PREMISES. FOR PURPOSES OF THIS PROVISION, "COMMUNICATIONS TECHNOLOGY" MEANS ANY METHOD USED AND THE COMPONENTS EMPLOYED BY AN ESTABLISHMENT TO FACILITATE THE TRANSMISSION OF INFORMATION, INCLUDING, WITHOUT LIMITATION, TRANSMISSION AND RECEPTION BY SYSTEMS BASED ON WIRE, CABLE, RADIO, MICROWAVE, LIGHT, OPTICS OR COMPUTER DATA NETWORKS, INCLUDING, WITHOUT LIMITATION, THE INTERNET AND INTRANETS. 8. "INTERACTIVE GAMING GROSS REVENUE" MEANS THE TOTAL OF ALL SUMS PAID TO A LICENSEE FROM INTERACTIVE GAMING INVOLVING AUTHORIZED PARTICIPANTS, LESS ONLY THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS TO PATRONS AND PROMOTIONAL GAMING CREDITS; PROVIDED, HOWEVER, THAT THE CASH EQUIVALENT S. 7509--B 104 VALUE OF ANY MERCHANDISE OR OTHER NON-CASH THING OF VALUE INCLUDED IN A CONTEST OR TOURNAMENT SHALL NOT BE INCLUDED IN THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS TO PLAYERS FOR PURPOSES OF DETERMINING INTERACTIVE GAMING GROSS REVENUE. (A) NEITHER AMOUNTS DEPOSITED WITH A LICENSEE FOR PURPOSES OF INTERAC- TIVE GAMING NOR AMOUNTS TAKEN IN FRAUDULENT ACTS PERPETRATED AGAINST A LICENSEE FOR WHICH THE LICENSEE IS NOT REIMBURSED SHALL BE CONSIDERED TO HAVE BEEN "PAID" TO THE LICENSEE FOR PURPOSES OF CALCULATING INTERACTIVE GAMING GROSS REVENUE. (B) "PROMOTIONAL GAMING CREDIT" INCLUDES BONUSES, PROMOTIONS AND ANY AMOUNT RECEIVED BY A LICENSEE FROM A PATRON FOR WHICH THE LICENSEE CAN DEMONSTRATE THAT IT OR ITS AFFILIATE HAS NOT RECEIVED CASH. 9. "INTERACTIVE GAMING PLATFORM" MEANS THE COMBINATION OF HARDWARE, SOFTWARE AND DATA NETWORKS USED TO MANAGE, ADMINISTER OR CONTROL WAGERS ON INTERACTIVE GAMING OR THE GAMES WITH WHICH THOSE WAGERS ARE ASSOCI- ATED. 10. "INTERNET" MEANS A COMPUTER NETWORK OF INTEROPERABLE PACKET- SWITCHED DATA NETWORKS. 11. "LICENSEE" MEANS A PERSON WHO IS LICENSED BY THE COMMISSION TO OFFER INTERACTIVE GAMING, USING AN INTERACTIVE GAMING PLATFORM TO AUTHORIZED PARTICIPANTS. A LICENSEE MAY UTILIZE MULTIPLE INTERACTIVE GAMING PLATFORMS PROVIDED THAT EACH PLATFORM IS APPROVED BY THE COMMIS- SION. 12. "OMAHA HOLD'EM POKER" MEANS THE POKER GAME MARKETED AS OMAHA HOLD'EM POKER OR OMAHA POKER IN WHICH EACH PLAYER IS DEALT FOUR CARDS AND MUST MAKE HIS OR HER BEST HAND USING EXACTLY TWO OF THEM, PLUS EXACTLY THREE OF THE FIVE COMMUNITY CARDS. 13. "SIGNIFICANT VENDOR" MEANS ANY PERSON WHO OFFERS OR WHO PROPOSES TO OFFER ANY OF THE FOLLOWING SERVICES WITH RESPECT TO INTERACTIVE GAMING: (A) A CORE FUNCTION; (B) SALE, LICENSING OR OTHER RECEIPT OF COMPENSATION FOR SELLING OR LICENSING A DATABASE OR CUSTOMER LIST OF INDIVIDUALS RESIDING IN THE UNITED STATES SELECTED IN WHOLE OR IN PART BECAUSE THEY PLACED WAGERS OR PARTICIPATED IN GAMBLING GAMES WITH OR THROUGH AN INTERNET WEBSITE OR OPERATOR (OR ANY DERIVATIVE OF SUCH A DATABASE OR CUSTOMER LIST); (C) PROVISION OF ANY TRADEMARK, TRADENAME, SERVICE MARK OR SIMILAR INTELLECTUAL PROPERTY UNDER WHICH A LICENSEE OR SIGNIFICANT VENDOR IDENTIFIES INTERACTIVE GAMES TO CUSTOMERS; OR (D) PROVISION OF ANY PRODUCT, SERVICE OR ASSET TO A LICENSEE OR SIGNIFICANT VENDOR IN RETURN FOR A PERCENTAGE OF INTERACTIVE GAMING REVENUE (NOT INCLUDING FEES TO FINANCIAL INSTITUTIONS AND PAYMENT PROVIDERS FOR FACILITATING A DEPOSIT OR WITHDRAWAL BY AN AUTHORIZED PARTICIPANT). THE TERM "SIGNIFICANT VENDOR" SHALL NOT INCLUDE A PROVIDER OF GOODS OR SERVICES TO A LICENSEE THAT ARE NOT SPECIFICALLY DESIGNED FOR USE AND NOT PRINCIPALLY USED IN CONNECTION WITH INTERACTIVE GAMING. 14. "TEXAS HOLD'EM POKER" MEANS THE TYPE OF POKER MARKETED AS TEXAS HOLD'EM POKER THAT INVOLVES TWO CARDS BEING DEALT FACE DOWN TO EACH PLAYER AND THEN FIVE COMMUNITY CARDS BEING PLACED FACE-UP BY THE DEALER, A SERIES OF THREE THEN TWO ADDITIONAL SINGLE CARDS, WITH PLAYERS HAVING THE OPTION TO CHECK, BET, RAISE OR FOLD AFTER EACH DEAL. § 1502. AUTHORIZATION. 1. THE COMMISSION SHALL, WITHIN ONE HUNDRED EIGHTY DAYS OF THE DATE THIS ARTICLE BECOMES LAW, PROMULGATE REGULATIONS TO IMPLEMENT INTERACTIVE GAMING IN THIS STATE AND SHALL AUTHORIZE UP TO ELEVEN LICENSES TO OPERATE INTERACTIVE GAMING INVOLVING AUTHORIZED PARTICIPANTS, SUBJECT TO THE PROVISIONS OF THIS ARTICLE AND OTHER APPLI- CABLE PROVISIONS OF LAW. S. 7509--B 105 2. APPLICANTS ELIGIBLE TO APPLY FOR A LICENSE AS AN OPERATOR PURSUANT TO THIS ARTICLE SHALL BE THOSE ENTITIES: (A) LICENSED BY THE STATE PURSUANT TO SECTION SIXTEEN HUNDRED SEVEN- TEEN-A OF THE TAX LAW TO OPERATE VIDEO LOTTERY GAMING AND HAS EXPERIENCE IN THE OPERATION OF INTERACTIVE GAMING BY BEING LICENSED IN A STATE WITH COMPARABLE LICENSING REQUIREMENTS OR GUARANTEES ACQUISITION OF ADEQUATE BUSINESS COMPETENCE AND EXPERIENCE IN THE OPERATION OF INTERACTIVE GAMING; OR (B) LICENSED BY THE STATE TO OPERATE A CLASS III GAMING FACILITY PURSUANT TO ARTICLE THIRTEEN OF THIS CHAPTER AND HAS EXPERIENCE IN THE OPERATION OF INTERACTIVE GAMING BY BEING LICENSED IN A STATE WITH COMPA- RABLE LICENSING REQUIREMENTS OR GUARANTEES ACQUISITION OF ADEQUATE BUSI- NESS COMPETENCE AND EXPERIENCE IN THE OPERATION OF INTERACTIVE GAMING. 3. THE COMMISSION SHALL, TO THE EXTENT PRACTICABLE, ISSUE LICENSES TO MULTIPLE APPLICANTS NO SOONER THAN ONE HUNDRED EIGHTY DAYS AFTER THE PROMULGATION OF REGULATIONS IN ORDER TO ENSURE A ROBUST AND COMPETITIVE MARKET FOR CONSUMERS AND TO PREVENT EARLY LICENSEES FROM GAINING AN UNFAIR COMPETITIVE ADVANTAGE. 4. NO PERSON MAY OPERATE, MANAGE OR MAKE AVAILABLE AN INTERACTIVE GAMING PLATFORM OR ACT AS A SIGNIFICANT VENDOR WITH RESPECT TO INTERAC- TIVE GAMING THAT IS OFFERED TO PERSONS LOCATED IN THIS STATE UNLESS LICENSED BY THE COMMISSION PURSUANT TO THIS ARTICLE AND ONLY THOSE GAMES AUTHORIZED BY THE COMMISSION SHALL BE PERMITTED. 5. LICENSE APPLICANTS MAY FORM A PARTNERSHIP, JOINT VENTURE OR OTHER CONTRACTUAL ARRANGEMENT IN ORDER TO FACILITATE THE PURPOSES OF THIS ARTICLE. 6. ANY PERSON FOUND SUITABLE BY THE COMMISSION MAY BE ISSUED A LICENSE AS AN OPERATOR OR SIGNIFICANT VENDOR PURSUANT TO THIS ARTICLE. IN DETER- MINING SUITABILITY, THE COMMISSION SHALL CONSIDER THOSE FACTORS IT DEEMS RELEVANT IN ITS DISCRETION, INCLUDING BUT NOT LIMITED TO: (A) WHETHER THE APPLICANT IS A PERSON OF GOOD CHARACTER, HONESTY AND INTEGRITY; (B) WHETHER THE APPLICANT IS PERSON WHOSE PRIOR ACTIVITIES, CRIMINAL RECORD, IF ANY, REPUTATION, HABITS AND ASSOCIATIONS DO NOT: (I) POSE A THREAT TO THE PUBLIC INTEREST OR TO THE EFFECTIVE REGU- LATION AND CONTROL OF INTERACTIVE GAMING; OR (II) CREATE OR ENHANCE THE DANGERS OF UNSUITABLE, UNFAIR OR ILLEGAL PRACTICES, METHODS AND ACTIVITIES IN THE CONDUCT OF INTERACTIVE GAMING OR IN THE CARRYING ON OF THE BUSINESS AND FINANCIAL ARRANGEMENTS INCI- DENTAL TO SUCH GAMING; (C) WHETHER THE APPLICANT IS CAPABLE OF AND LIKELY TO CONDUCT THE ACTIVITIES FOR WHICH THE APPLICANT IS LICENSED IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, ANY REGULATIONS PRESCRIBED UNDER THIS ARTI- CLE AND ALL OTHER APPLICABLE LAWS; (D) WHETHER THE APPLICANT HAS OR GUARANTEES ACQUISITION OF ADEQUATE BUSINESS COMPETENCE AND EXPERIENCE IN THE OPERATION OF LICENSED GAMING OR OF INTERACTIVE GAMING IN THIS STATE OR IN A STATE WITH COMPARABLE LICENSING REQUIREMENTS; (E) WHETHER THE APPLICANT HAS OR WILL OBTAIN SUFFICIENT FINANCING FOR THE NATURE OF THE PROPOSED OPERATION AND FROM A SUITABLE SOURCE; AND (F) WHETHER THE APPLICANT: (I) HAS AT ANY TIME, EITHER DIRECTLY, OR THROUGH ANOTHER PERSON WHOM IT OWNED, IN WHOLE OR IN SIGNIFICANT PART, OR CONTROLLED: (A) KNOWINGLY AND WILLFULLY ACCEPTED OR MADE AVAILABLE WAGERS ON INTERACTIVE GAMING (INCLUDING POKER) FROM PERSONS LOCATED IN THE UNITED STATES AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SIX, UNLESS SUCH WAGERS S. 7509--B 106 WERE AFFIRMATIVELY AUTHORIZED BY LAW OF THE UNITED STATES OR OF EACH STATE IN WHICH PERSONS MAKING SUCH WAGERS WERE LOCATED; OR (B) KNOWINGLY FACILITATED OR OTHERWISE PROVIDED SERVICES WITH RESPECT TO INTERACTIVE GAMING (INCLUDING POKER) INVOLVING PERSONS LOCATED IN THE UNITED STATES FOR A PERSON DESCRIBED IN CLAUSE (A) OF THIS SUBPARAGRAPH AND ACTED WITH KNOWLEDGE OF THE FACT THAT SUCH WAGERS OR INTERACTIVE GAMING INVOLVED PERSONS LOCATED IN THE UNITED STATES; OR (II) HAS PURCHASED OR ACQUIRED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN SIGNIFICANT PART, A PERSON DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARA- GRAPH OR WILL USE THAT PERSON OR A COVERED ASSET IN CONNECTION WITH INTERACTIVE GAMING LICENSED PURSUANT TO THIS ARTICLE. 7. THE COMMISSION FURTHER SHALL DEVELOP STANDARDS BY WHICH TO EVALUATE AND APPROVE INTERACTIVE GAMING PLATFORMS FOR USE WITH INTERACTIVE GAMING. INTERACTIVE GAMING PLATFORMS MUST BE APPROVED BY THE COMMISSION BEFORE BEING USED BY A LICENSEE OR SIGNIFICANT VENDOR TO CONDUCT INTER- ACTIVE GAMING IN THIS STATE. 8. THE COMMISSION SHALL REQUIRE ALL LICENSEES TO OPERATE INTERACTIVE GAMING TO PAY A ONE-TIME FEE OF TEN MILLION DOLLARS. SUCH FEE PAID BY EACH LICENSEE SHALL BE APPLIED TO SATISFY, IN WHOLE OR IN PART, AS APPLICABLE, THAT LICENSEE'S TAX OBLIGATION PURSUANT TO SECTION FIFTEEN HUNDRED FIVE OF THIS ARTICLE IN SIXTY EQUAL MONTHLY INSTALLMENTS, ALLO- CATED TO EACH OF THE FIRST SIXTY MONTHS OF TAX OWED AFTER THE LICENSEE HAS BEGUN OPERATING INTERACTIVE GAMING PURSUANT TO THIS ARTICLE. NO AMOUNTS NOT REQUIRED TO BE USED TO SATISFY SUCH TAX OBLIGATION DURING THAT PERIOD SHALL BE ALLOCATED TO PAYMENT OF SUCH TAX OBLIGATION AFTER THAT PERIOD. 9. LICENSES TO OPERATE INTERACTIVE GAMING ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR TEN YEARS. 10. THE COMMISSION, BY REGULATION, MAY AUTHORIZE AND PROMULGATE ANY RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED AGENCIES THEREOF (A) TO ENABLE PATRONS IN THOSE STATES TO PARTICIPATE IN INTERACTIVE GAMING OFFERED BY LICENSEES UNDER THIS ARTICLE OR (B) TO ENABLE PATRONS IN THIS STATE TO PARTICIPATE IN INTERACTIVE GAMING OFFERED BY LICENSEES UNDER THE LAWS OF THOSE OTHER STATES, PROVIDED THAT SUCH OTHER STATE OR AUTHORIZED AGENCY APPLIES SUITABILITY STANDARDS AND REVIEW MATERIALLY CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE. 11. ANY REGULATIONS ADOPTED PURSUANT TO SUBDIVISION TEN OF THIS SECTION MUST SET FORTH PROVISIONS THAT ADDRESS: (A) ANY ARRANGEMENTS TO SHARE REVENUE BETWEEN NEW YORK AND ANY OTHER STATE OR AGENCY WITHIN ANOTHER STATE; AND (B) ARRANGEMENTS TO ENSURE THE INTEGRITY OF INTERACTIVE GAMING OFFERED PURSUANT TO ANY SUCH AGREEMENT AND THE PROTECTION OF PATRONS LOCATED IN THIS STATE. 12. THE COMMISSION MAY DELEGATE ITS RESPONSIBILITIES TO ADMINISTER THE PROVISIONS OF THIS ARTICLE TO THE DIVISION, AS IT SEES FIT, EXCEPT FOR ITS RESPONSIBILITIES TO APPROVE LICENSES. § 1503. REQUIRED SAFEGUARDS/MINIMUM STANDARDS. THE COMMISSION SHALL REQUIRE LICENSEES TO IMPLEMENT MEASURES TO MEET THE STANDARDS SET OUT IN THIS SECTION, ALONG WITH SUCH OTHER STANDARDS THAT THE COMMISSION IN ITS DISCRETION MAY CHOOSE TO REQUIRE. (A) APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF CERTAINTY, THAT PARTICIPANTS IN INTERACTIVE GAMING ARE NOT YOUNGER THAN TWENTY-ONE YEARS OF AGE. (B) APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF CERTAINTY, THAT PARTICIPANTS IN INTERACTIVE GAMING ARE PHYSICALLY S. 7509--B 107 LOCATED WITHIN THE STATE OR SUCH OTHER JURISDICTION THAT THE COMMISSION HAS DETERMINED TO BE PERMISSIBLE. (C) APPROPRIATE SAFEGUARDS TO PROTECT, TO A REASONABLE DEGREE OF CERTAINTY, THE PRIVACY AND ONLINE SECURITY OF PARTICIPANTS IN INTERAC- TIVE GAMING. (D) APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF CERTAINTY, THAT THE INTERACTIVE GAMING IS FAIR AND HONEST AND THAT APPROPRIATE MEASURES ARE IN PLACE TO DETER, DETECT AND, TO THE EXTENT REASONABLY POSSIBLE, TO PREVENT CHEATING, INCLUDING COLLUSION, AND USE OF CHEATING DEVICES, INCLUDING USE OF SOFTWARE PROGRAMS (SOMETIMES REFERRED TO AS "BOTS") THAT MAKE BETS OR WAGERS ACCORDING TO ALGORITHMS. (E) APPROPRIATE SAFEGUARDS TO MINIMIZE COMPULSIVE GAMING AND TO PROVIDE NOTICE TO PARTICIPANTS OF RESOURCES TO HELP PROBLEM GAMBLERS. (F) APPROPRIATE SAFEGUARDS TO ENSURE PARTICIPANTS' FUNDS ARE HELD IN ACCOUNTS SEGREGATED FROM THE FUNDS OF LICENSEES AND OTHERWISE ARE PROTECTED FROM CORPORATE INSOLVENCY, FINANCIAL RISK OR CRIMINAL OR CIVIL ACTIONS AGAINST THE LICENSEE. § 1504. SCOPE OF LICENSING REVIEW. 1. IN CONNECTION WITH ANY LICENSE ISSUED PURSUANT TO THIS ARTICLE, THE LICENSEE, SIGNIFICANT VENDOR OR APPLICANT SHALL IDENTIFY AND THE COMMISSION SHALL REVIEW THE SUITABILITY OF SUCH LICENSEE'S, SIGNIFICANT VENDOR'S OR APPLICANT'S OWNER, CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER AND ANY OTHER OFFICER OR EMPLOYEE WHO THE COMMISSION DEEMS IS SIGNIFICANTLY INVOLVED IN THE MANAGEMENT OR CONTROL OF THE LICENSEE, SIGNIFICANT VENDOR OR APPLICANT OR OF THE INTERACTIVE GAMING PLATFORM. "OWNER" FOR PURPOSES OF THIS PROVISION MEANS ANY PERSON WHO DIRECTLY OR INDIRECTLY HOLDS ANY BENEFI- CIAL OR OWNERSHIP INTEREST IN THE APPLICANT OF FIVE PERCENT OR GREATER OR ANY AMOUNT OF OWNERSHIP THAT THE COMMISSION DETERMINES TO BE SIGNIF- ICANT OWNERSHIP OF THE LICENSEE, SIGNIFICANT VENDOR, OR APPLICANT. 2. INSTITUTIONAL INVESTORS ARE SUBJECT TO THE PROVISIONS SET OUT IN THIS SECTION. (A) AN INSTITUTIONAL INVESTOR HOLDING UNDER TWENTY-FIVE PERCENT OF THE EQUITY SECURITIES OF A LICENSEE'S OR SIGNIFICANT VENDOR'S (OR APPLI- CANT'S) HOLDING OR INTERMEDIARY COMPANIES, SHALL BE GRANTED A WAIVER OF ANY INVESTIGATION OF SUITABILITY OR OTHER REQUIREMENT IF SUCH SECURITIES ARE THOSE OF A CORPORATION, WHETHER PUBLICLY TRADED OR PRIVATELY HELD, AND ITS HOLDINGS OF SUCH SECURITIES WERE PURCHASED FOR INVESTMENT PURPOSES ONLY AND IT FILES A CERTIFIED STATEMENT TO THE EFFECT THAT IT HAS NO INTENTION OF INFLUENCING OR AFFECTING THE AFFAIRS OF THE ISSUER, THE LICENSEE (OR SIGNIFICANT VENDOR OR APPLICANT, AS APPLICABLE) OR ITS HOLDING OR INTERMEDIARY COMPANIES; PROVIDED, HOWEVER, THAT IT SHALL BE PERMITTED TO VOTE ON MATTERS PUT TO THE VOTE OF THE OUTSTANDING SECURITY HOLDERS. THE COMMISSION MAY GRANT SUCH A WAIVER TO AN INSTITUTIONAL INVESTOR HOLDING A HIGHER PERCENTAGE OF SUCH SECURITIES UPON A SHOWING OF GOOD CAUSE AND IF THE CONDITIONS SPECIFIED ABOVE ARE MET. ANY INSTI- TUTIONAL INVESTOR GRANTED A WAIVER UNDER THIS PARAGRAPH WHICH SUBSE- QUENTLY DETERMINES TO INFLUENCE OR AFFECT THE AFFAIRS OF THE ISSUER SHALL PROVIDE NOT LESS THAN THIRTY DAYS' NOTICE OF SUCH INTENT AND SHALL FILE WITH THE COMMISSION A REQUEST FOR DETERMINATION OF SUITABILITY BEFORE TAKING ANY ACTION THAT MAY INFLUENCE OR AFFECT THE AFFAIRS OF THE ISSUER; PROVIDED, HOWEVER, THAT IT SHALL BE PERMITTED TO VOTE ON MATTERS PUT TO THE VOTE OF THE OUTSTANDING SECURITY HOLDERS. IF AN INSTITUTIONAL INVESTOR CHANGES ITS INVESTMENT INTENT, OR IF THE COMMISSION FINDS REASONABLE CAUSE TO BELIEVE THAT THE INSTITUTIONAL INVESTOR MAY BE FOUND UNSUITABLE, NO ACTION OTHER THAN DIVESTITURE SHALL BE TAKEN BY SUCH INVESTOR WITH RESPECT TO ITS SECURITY HOLDINGS UNTIL THERE HAS BEEN S. 7509--B 108 COMPLIANCE WITH ANY REQUIREMENTS ESTABLISHED BY THE COMMISSION, WHICH MAY INCLUDE THE EXECUTION OF A TRUST AGREEMENT. THE LICENSEE (OR SIGNIF- ICANT VENDOR OR APPLICANT, AS APPLICABLE) AND ITS RELEVANT HOLDING, INTERMEDIARY OR SUBSIDIARY COMPANY SHALL NOTIFY THE COMMISSION IMME- DIATELY OF ANY INFORMATION ABOUT, OR ACTIONS OF, AN INSTITUTIONAL INVES- TOR HOLDING ITS EQUITY SECURITIES WHERE SUCH INFORMATION OR ACTION MAY IMPACT UPON THE ELIGIBILITY OF SUCH INSTITUTIONAL INVESTOR FOR A WAIVER PURSUANT TO THIS PARAGRAPH. (B) IF AT ANY TIME THE COMMISSION FINDS THAT AN INSTITUTIONAL INVESTOR HOLDING ANY SECURITY OF A HOLDING OR INTERMEDIARY COMPANY OF A LICENSEE OR SIGNIFICANT VENDOR OR APPLICANT, OR, WHERE RELEVANT, OF ANOTHER SUBSIDIARY COMPANY OF A HOLDING OR INTERMEDIARY COMPANY OF A LICENSEE OR SIGNIFICANT VENDOR OR APPLICANT WHICH IS RELATED IN ANY WAY TO THE FINANCING OF THE LICENSEE OR SIGNIFICANT VENDOR OR APPLICANT, FAILS TO COMPLY WITH THE TERMS OF PARAGRAPH (A) OF THIS SECTION, OR IF AT ANY TIME THE COMMISSION FINDS THAT, BY REASON OF THE EXTENT OR NATURE OF ITS HOLDINGS, AN INSTITUTIONAL INVESTOR IS IN A POSITION TO EXERCISE SUCH A SUBSTANTIAL IMPACT UPON THE CONTROLLING INTERESTS OF A LICENSEE OR SIGNIFICANT VENDOR OR APPLICANT THAT INVESTIGATION AND DETERMINATION OF SUITABILITY OF THE INSTITUTIONAL INVESTOR IS NECESSARY TO PROTECT THE PUBLIC INTEREST, THE COMMISSION MAY TAKE ANY NECESSARY ACTION OTHERWISE AUTHORIZED UNDER THIS ARTICLE TO PROTECT THE PUBLIC INTEREST. (C) FOR PURPOSES OF THIS SECTION, AN "INSTITUTIONAL INVESTOR" SHALL MEAN ANY RETIREMENT FUND ADMINISTERED BY A PUBLIC AGENCY FOR THE EXCLU- SIVE BENEFIT OF FEDERAL, STATE, OR LOCAL PUBLIC EMPLOYEES; INVESTMENT COMPANY REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. § 80A-1 ET SEQ.); COLLECTIVE INVESTMENT TRUST ORGANIZED BY BANKS UNDER PART NINE OF THE RULES OF THE COMPTROLLER OF THE CURRENCY; CLOSED END INVESTMENT TRUST; CHARTERED OR LICENSED LIFE INSURANCE COMPANY OR PROP- ERTY AND CASUALTY INSURANCE COMPANY; BANKING AND OTHER CHARTERED OR LICENSED LENDING INSTITUTION; INVESTMENT ADVISOR REGISTERED UNDER THE INVESTMENT ADVISORS ACT OF 1940 (15 U.S.C. § 80B-1 ET SEQ.); AND SUCH OTHER PERSONS AS THE COMMISSION MAY DETERMINE FOR REASONS CONSISTENT WITH THE PUBLIC INTEREST. § 1505. STATE TAX. LICENSEES ENGAGED IN THE BUSINESS OF CONDUCTING INTERACTIVE GAMING PURSUANT TO THIS ARTICLE SHALL PAY A PRIVILEGE TAX BASED ON THE LICENSEE'S INTERACTIVE GAMING GROSS REVENUE AT A FIFTEEN PERCENT RATE. § 1506. DISPOSITION OF TAXES. THE COMMISSION SHALL PAY INTO THE STATE LOTTERY FUND ALL TAXES IMPOSED BY THIS ARTICLE; ANY INTEREST AND PENAL- TIES IMPOSED BY THE COMMISSION RELATING TO THOSE TAXES; ALL PENALTIES LEVIED AND COLLECTED BY THE COMMISSION; AND THE APPROPRIATE FUNDS, CASH OR PRIZES FORFEITED FROM INTERACTIVE GAMING. § 2. Subdivision 1 of section 225.00 of the penal law is amended to read as follows: 1. "Contest of chance" means any contest, game, gaming scheme or gaming device in which the outcome depends [in a material degree] PREDOMINANTLY upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein. § 3. The penal law is amended by adding a new section 225.36 to read as follows: § 225.36 INTERACTIVE GAMING OFFENSES AND EXCEPTIONS. 1. THE KNOWING AND WILLFUL OFFERING OF UNLICENSED INTERACTIVE GAMING TO PERSONS IN THIS STATE, OR THE KNOWING AND WILLFUL PROVISION OF SERVICES WITH RESPECT THERETO, SHALL CONSTITUTE A GAMBLING OFFENSE UNDER THIS ARTICLE. S. 7509--B 109 2. LICENSED INTERACTIVE GAMING ACTIVITIES UNDER SECTION FIFTEEN HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW SHALL NOT BE A GAMBLING OFFENSE UNDER THIS ARTICLE. 3. A PERSON OFFERING UNLICENSED INTERACTIVE GAMING TO PERSONS IN THIS STATE SHALL BE LIABLE FOR ALL TAXES SET FORTH IN SECTION FIFTEEN HUNDRED FIVE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW IN THE SAME MANNER AND AMOUNTS AS IF SUCH PERSON WERE A LICENSEE. TIMELY PAYMENT OF SUCH TAXES SHALL NOT CONSTITUTE A DEFENSE TO ANY PROSECUTION OR OTHER PROCEEDING IN CONNECTION WITH THE INTERACTIVE GAMING EXCEPT FOR A PROSE- CUTION OR PROCEEDING ALLEGING FAILURE TO MAKE SUCH PAYMENT. § 4. Severability clause. If any provision of this act or application thereof shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of the act, but shall be confined in its opera- tion to the provision thereof directly involved in the controversy in which the judgment shall have been rendered. § 5. This act shall take effect on the one hundred eightieth day after it shall have become a law. PART SSS Section 1. Section 486 of the general municipal law, as amended by section 6 of part MM of chapter 59 of the laws of 2017, is amended to read as follows: § 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 eighteen years shall be permitted to conduct, operate or assist in the conduct of any game of bingo conducted pursuant to any license issued 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. § 2. This act shall take effect immediately. PART TTT Section 1. Subdivision f-1 of section 1612 of the tax law, as amended by chapter 175 of the laws of 2013, is amended to read as follows: f-1. As consideration for operation of video lottery gaming facility located in the county of Nassau or Suffolk and operated by a corporation established pursuant to section five hundred two of the racing, pari-mu- tuel wagering and breeding law, the division shall cause the investment in the racing industry of the following percentages of the vendor fee to be deposited or paid as follows: 1. Two and three tenths percent of the total wagered after payout of prizes for the purpose of enhancing purses at Aqueduct racetrack, Belmont Park racetrack and Saratoga race course[, provided, however, that any amount that is in excess of the amount necessary to maintain purse support from video lottery gaming at Aqueduct racetrack, Belmont Park racetrack and Saratoga race course at the same level realized in two thousand thirteen, to be adjusted by the consumer price index for all urban consumers, as published annually by the United States depart- ment of labor, bureau of labor statistics, shall instead be returned to the commission]. S. 7509--B 110 2. five tenths percent of the total wagered after payout of prizes for the appropriate breeding fund for the manner of racing at Aqueduct race- track, Belmont Park racetrack and Saratoga race course[, provided, however, that any amount that is in excess of the amount necessary to maintain payments from video lottery gaming at Aqueduct racetrack at the same level realized in two thousand thirteen, 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, shall instead be returned to the commission]. 3. one and three tenths percent of the total revenue wagered after payout of prizes to be deposited into an account of the franchised corporation established pursuant to section two hundred six of the racing, pari-mutuel wagering and breeding law to be used for capital expenditures in maintaining and upgrading Aqueduct racetrack, Belmont Park racetrack and Saratoga race course[, provided, however, that any amount that is in excess of the amount necessary to maintain payments for capital expenditures from video lottery gaming at Aqueduct racetrack at the same level realized in two thousand thirteen, 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, shall instead be returned to the commission]. 4. Nine tenths percent of the total revenue wagered after payout for prizes to be deposited into an account of the franchised corporation established pursuant to section two hundred six of the racing, pari-mu- tuel wagering and breeding law to be used for general thoroughbred racing operations at Aqueduct racetrack, Belmont Park racetrack and Saratoga race course[, provided, however, that any amount that is in excess of the amount necessary to maintain payments for general thoroughbred racing operations from video lottery gaming at Aqueduct racetrack at the same level realized in two thousand thirteen, 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, shall instead be returned to the commission]. § 2. This act shall take effect immediately. PART UUU Section 1. Subdivision 2 of section 516 of the racing, pari-mutuel wagering and breeding law is amended to read as follows: 2. After payment of all of the costs of the corporation's functions, net revenue remaining to the corporation shall be divided[, quarterly, not more than thirty days after the close of the calendar quarter], among the participating counties in accordance with the following provisions: a. EACH OFF-TRACK BETTING CORPORATION SHALL DETERMINE, AT THEIR ORGAN- IZATIONAL MEETING, IF SUCH NET REVENUE REMAINING TO THE CORPORATION SHALL BE DIVIDED TO PARTICIPATING COUNTIES ON AN ANNUAL, BI-ANNUAL OR QUARTERLY BASIS, TO BE DIVIDED NOT MORE THAN THIRTY DAYS AFTER THE CLOSE OF THE CALENDAR YEAR, THE CLOSE OF THE BI-ANNUAL YEAR (JANUARY-JUNE AND JULY-DECEMBER) OR CALENDAR QUARTER; B. Fifty percent of such revenue distributed among the participating counties on the basis of the proportion of the total off-track pari-mu- tuel wagering accepted by the corporation during the previous [calendar quarter] PERIOD that originated in the branch offices located in each participating county; S. 7509--B 111 [b.] C. Fifty percent of such revenue on the basis of population, as defined as the total population in each participating county shown by the latest preceding decennial federal census completed and published as a final population count by the United States bureau of the census preceding the commencement of the calendar year in which such distrib- ution is to be made; and [c.] D. A participating county containing a city electing to partic- ipate in the management and revenues of a corporation under subdivision two of section five hundred two of this article shall distribute revenue received under paragraphs [a] B and [b] C of this subdivision to such city according to the proportion such city's population bears to the county's population. § 2. This act shall take effect immediately. PART VVV Section 1. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 103-a to read as follows: § 103-A. RACING FAN ADVISORY COUNCIL. THERE IS HEREBY ESTABLISHED A RACING FAN ADVISORY COUNCIL WITHIN THE COMMISSION WHICH WILL OPERATE AS FOLLOWS: 1. THE COUNCIL SHALL BE COMPOSED OF FIVE MEMBERS. NONE OF THE MEMBERS OF THE COUNCIL SHALL BE EMPLOYEES OR OFFICERS OF THE COMMISSION OR BE PAID EMPLOYEES, LOBBYISTS, OR OFFICERS OF ANY LICENSED OR FRANCHISED RACETRACK OR OFF-TRACK BETTING CORPORATION OR ANY NONPROFIT CORPORATION WHICH REPRESENTS BREEDERS OR HORSEMEN. MEMBERS SHALL BE SELECTED BASED ON THEIR LONG-TERM INVOLVEMENT AND INTEREST IN, KNOWLEDGE OF, AND DEVOTION TO THE SPORT OF HORSE RACING AS FANS OF THE SPORT. FIVE PERSONS SHALL BE APPOINTED BY THE EXECUTIVE DIRECTOR OF THE COMMISSION. ONE PERSON SHALL BE APPOINTED UPON THE RECOMMENDATION OF THE CHAIRPERSON OF THE SENATE COMMITTEE ON RACING, GAMING AND WAGERING, AND ONE PERSON SHALL BE APPOINTED BY THE CHAIRPERSON OF THE ASSEMBLY COMMITTEE ON RACING AND WAGERING. 2. THE CHAIRPERSON OF THE COUNCIL SHALL BE SELECTED BY THE EXECUTIVE DIRECTOR OF THE COMMISSION. THE DEPUTY CHAIRPERSON SHALL BE SELECTED BY A MAJORITY VOTE OF THE COUNCIL FROM AMONG THE PERSONS APPOINTED AT THE RECOMMENDATION OF THE CHAIRPERSONS OF THE DESIGNATED LEGISLATIVE COMMIT- TEES. 3. THE MEMBERS OF THE COUNCIL SHALL SERVE FOR A PERIOD OF FIVE YEARS WITH ALL TERMS BEGINNING SEPTEMBER FIRST, TWO THOUSAND SIXTEEN. IN THE EVENT OF A VACANCY OCCURRING DURING A TERM OF APPOINTMENT BY REASON OF DEATH, RESIGNATION, DISQUALIFICATION OR OTHERWISE, SUCH VACANCY SHALL BE FILLED FOR THE UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT. 4. THE RACING FAN ADVISORY COUNCIL SHALL REQUEST AND SHALL RECEIVE THE ASSISTANCE AND COOPERATION OF THE COMMISSION IN REGARD TO RECEIPT OF INFORMATION RELATING TO HORSE RACING AND WAGERING IN THIS STATE. 5. THE RACING FAN ADVISORY COUNCIL SHALL: (A) HAVE AS ITS MISSION THE GROWTH OF THE FAN BASE RELATED TO THE SPORT OF HORSE RACING; (B) RECOMMEND PROCEDURES TO ENSURE THAT THE OPINION OF THE FAN IS A CENTRAL PART OF THE REGULATION OF HORSE RACING; (C) PREPARE AN ANNUAL REPORT, AND ANY OTHER REPORTS IT DEEMS NECES- SARY, TO THE COMMISSION REGARDING THE OPERATION OF THE STATE'S THOROUGH- BRED AND HARNESS RACETRACKS AND THE STATE'S OFF-TRACK BETTING CORPO- RATIONS; S. 7509--B 112 (D) ADVISE THE COMMISSION ON APPROPRIATE ACTIONS TO ENCOURAGE FAN ATTENDANCE AND WAGERING AT THE STATE'S THOROUGHBRED AND HARNESS RACE- TRACKS AND THE STATE'S OFF-TRACK BETTING CORPORATIONS; (E) BE AUTHORIZED BY THE COMMISSION TO ENTER UPON THE RACETRACKS AND THEIR FACILITIES REGULATED OR CONTROLLED BY THE BOARD DURING RACE TIMES, AND DURING PERIODS OF HORSE WORKOUTS, AND DURING HOURS WHEN MEMBERS OF THE MEDIA ARE PERMITTED TO BE PRESENT AT THE FACILITIES; (F) RECOMMEND CHANGES TO THE RULES OF THE COMMISSION AND TO THE LAWS AFFECTING HORSE RACING; (G) PERFORM SUCH OTHER DUTIES AS MAY BE INCREASED BY ORDER OF THE COMMISSION; (H) ENGAGE NEW YORK STATE'S RACING FAN POPULATION ON HOW TO MAKE THE SPORT MORE APPEALING; (I) RECOMMEND TO THE COMMISSION FURTHER PROCEDURES TO MAKE STEWARD AND PRESIDING JUDGE ACTIONS THAT IMPACT THE BETTING PUBLIC MORE TRANSPARENT; AND (J) WORK WITH RELEVANT COMPONENT INDUSTRIES TO BETTER EDUCATE THE CASUAL FAN AS TO SIGNIFICANT INDUSTRY TOPICS. § 2. This act shall take effect immediately; provided, however, that the members of the racing fan advisory council as created by resolution of the New York Gaming Commission dated September 1, 2016, shall be the initial members of the racing fan advisory council as established by this act. PART WWW Section 1. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 103-a to read as follows: § 103-A. ADVISORY COUNCIL ON RETIRED RACE HORSES. 1. FOR THE PURPOSES OF THIS SECTION: (A) "COUNCIL" MEANS THE ADVISORY COUNCIL ON RETIRED RACE HORSES ESTAB- LISHED IN THIS SECTION. (B) "RETIRED RACE HORSE" MEANS (I) A NEW YORK-BRED THOROUGHBRED, AS DEFINED BY SUBDIVISION THREE OF SECTION TWO HUNDRED FIFTY-ONE OF THIS CHAPTER, WHICH IS NO LONGER ENGAGED IN HORSE RACING; (II) A STANDARDBRED WHICH MEETS THE STANDARD SET FORTH IN SECTION THREE HUNDRED THIRTY-FOUR OF THIS CHAPTER, WHICH IS NO LONGER ENGAGED IN HORSE RACING; OR (III) ANY HORSE THAT IS SPECIFICALLY BRED FOR THE INTENDED PURPOSE OF THOROUGHBRED OR STANDARDBRED HORSE RACING, BUT WAS NEVER USED IN HORSE RACING. THE TERM RETIRED RACE HORSE SHALL BE BROADLY CONSTRUED TO INCLUDE THOSE HORSES THAT WERE ACTUALLY USED IN RACING AND THOSE THAT WERE BRED AND INTENDED TO BE SO USED BUT WERE NOT SO USED. 2. THERE IS HEREBY ESTABLISHED IN THE COMMISSION THE ADVISORY COUNCIL ON RETIRED RACE HORSES. THE COUNCIL SHALL BE COMPRISED OF THIRTEEN MEMBERS. SUCH COUNCIL SHALL HAVE TWO EX-OFFICIO CO-CHAIRPERSONS, ONE OF WHOM SHALL BE THE CHAIR OF THE COMMISSION AND THE OTHER OF WHOM SHALL BE THE COMMISSIONER OF AGRICULTURE AND MARKETS, OR THEIR DESIGNEES. FIVE MEMBERS SHALL BE APPOINTED BY THE GOVERNOR, TWO MEMBERS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE, TWO MEMBERS SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY, ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE SENATE, AND ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY. THE MEMBERS APPOINTED TO THE COUNCIL SHALL SERVE TERMS OF FIVE YEARS; PROVIDED, HOWEVER, THAT OF THE MEMBERS INITIALLY APPOINTED TO THE COUNCIL: ONE MEMBER APPOINTED BY THE GOVERNOR AND THE MEMBER APPOINTED BY THE MINORITY LEADER OF THE SENATE SHALL SERVE TERMS OF ONE YEAR; ONE MEMBER APPOINTED BY THE GOVERNOR, ONE S. 7509--B 113 MEMBER APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE AND ONE MEMBER APPOINTED BY THE SPEAKER OF THE ASSEMBLY SHALL BE APPOINTED TO TERMS OF TWO YEARS; ONE MEMBER APPOINTED BY THE GOVERNOR AND ONE MEMBER APPOINTED BY THE SPEAKER OF THE ASSEMBLY SHALL BE APPOINTED FOR TERMS OF THREE YEARS; ONE MEMBER APPOINTED BY THE GOVERNOR AND ONE MEMBER APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE SHALL BE APPOINTED FOR TERMS OF FOUR YEARS; AND ONE MEMBER APPOINTED BY THE GOVERNOR AND THE MEMBER APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY SHALL SERVE TERMS OF FIVE YEARS. ALL INITIALLY APPOINTED MEMBERS OF THE COUNCIL SHALL BE APPOINTED WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION. THE APPOINTED MEMBERS OF SUCH COUNCIL SHALL BE REPRESENTATIVE OF: (A) OWNERS, BREEDERS AND TRAINERS OF STANDARDBRED AND THOROUGHBRED HORSES, (B) PERSONS WITH EXPERTISE IN TRAINING HORSES FOR USES OTHER THAN RACING, SUCH AS RIDING SCHOOLS, STEEPLECHASE COMPETITIONS, SHOW HORSE COMPETITIONS AND OTHER RECREATIONAL USES, (C) PERSONS WITH EXPERI- ENCE IN THE POTENTIAL FARM APPLICATIONS OR OTHER RURAL, SUBURBAN OR URBAN ECONOMIC BUSINESS APPLICATIONS FOR HORSES, AND (D) PERSONS FAMIL- IAR WITH THE USE OF HORSES FOR RECREATIONAL OR THERAPEUTIC USES IN EITHER PRIVATE, PUBLIC HEALTH, COLLEGE, UNIVERSITY OR CORRECTIONAL FACILITY SETTINGS. ANY VACANCY ON SUCH COUNCIL SHALL BE FILLED BY THE ORIGINAL APPOINTING AUTHORITY. COUNCIL MEMBERS SHALL RECEIVE NO COMPEN- SATION FOR THEIR SERVICES, BUT SHALL BE REIMBURSED FOR ACTUAL AND NECES- SARY TRAVEL EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES. 3. THE MISSION OF THE COUNCIL IS TO IDENTIFY AND MAKE RECOMMENDATIONS TO PROMOTE THE PRODUCTIVE USE OF RETIRED RACE HORSES AND TO INCREASE THE NUMBER OF SUCH HORSES MADE AVAILABLE FOR SUCH USES AND SO USED. THE COUNCIL SHALL DEVELOP AND IDENTIFY NEW AND INNOVATIVE IDEAS AND METHODS THAT CAN UTILIZE PRIVATE AND PUBLIC FUNDING SOURCES OR PUBLIC/PRIVATE PARTNERSHIPS TO PLACE RETIRED RACE HORSES IN SUCH PRODUCTIVE AND BENEFI- CIAL USES, AND TO INCREASE BOTH THE NUMBER OF HORSES SO USED AND THE SCALE AND VARIETY OF SUCH USES. 4. THE COUNCIL SHALL BE RESPONSIBLE FOR: (A) PROMOTING THE PROPER CARE AND TREATMENT OF RETIRED RACE HORSES IN A HUMANE AND PRODUCTIVE MANNER; (B) ADVISING THE COMMISSION, THE DEPARTMENT OF AGRICULTURE AND MARKETS, THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVELOPMENT FUND AND THE AGRICULTURE AND NEW YORK STATE BREEDING DEVELOPMENT FUND ON WAYS TO PROMOTE THE HUMANE CARE AND TREATMENT OF SUCH HORSES AFTER THEIR RACING CAREERS ARE OVER VIA PUBLIC POLICIES, FUNDING ALLOCATIONS AND SPECIFIC COURSES OF ACTION THAT CAN BE TAKEN TO REDUCE THE NUMBER OF RACE TRACK FATALITIES AND INJURIES DURING THE CONDUCT OF RACE MEETS AND TRAINING; (C) EXPLORE THE POSSIBILITY OF DEVELOPING A LIMITED RETIRED RACE HORSE TRACKING SYSTEM TO OBTAIN USEFUL INFORMATION ON THE USES AND ULTIMATE PLACEMENT OF SUCH HORSES AFTER THEIR RACING CAREERS HAVE ENDED. SUCH INFORMATION MAY BE SHARED WITH THE COMMISSION, THE DEPARTMENT OF AGRI- CULTURE AND MARKETS, THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVEL- OPMENT FUND, AND THE AGRICULTURE AND NEW YORK STATE BREEDING DEVELOPMENT FUND SO AS TO ASSIST SUCH ENTITIES IN THEIR DUTIES TO ENSURE THE HUMANE CARE AND TREATMENT OF RETIRED RACE HORSES, AND TO DEVELOP STRATEGIES TO ENHANCE THE HUMANE AND PRODUCTIVE USE OF SUCH HORSES AFTER THEIR RACING CAREERS HAVE ENDED; AND (D) THE DEVELOPMENT OF STRATEGIES TO MINIMIZE THE ABANDONMENT AND UNNECESSARY SLAUGHTER OF SUCH RETIRED RACE HORSES. 5. THE COUNCIL SHALL INVESTIGATE, STUDY AND MAKE RECOMMENDATIONS ON THE FEASIBILITY OF PROMOTING THE REUSE OF RETIRED RACE HORSES IN A S. 7509--B 114 MANNER THAT EXPANDS THE NUMBER OF POTENTIAL OPPORTUNITIES FOR THE PRODUCTIVE FUTURE USE OF SUCH ANIMALS AND FOR ACTIVITIES SUCH AS, BUT NOT LIMITED TO: (A) PROMOTING AND FACILITATING A LARGER MARKET FOR THE PURCHASE AND SALE OF RETIRED RACE HORSES; (B) PROMOTING THE EXPANDED THERAPEUTIC USE OF SUCH HORSES IN THE MEDICAL, PSYCHOLOGICAL, OR REHABILITATIVE CARE OR TREATMENT OF PATIENTS; (C) THE EXPANSION OF THE USE OF HORSES AT FEDERAL, STATE, AND LOCAL CORRECTIONAL FACILITIES AND YOUTH DETENTION FACILITIES TO TRAIN THE INMATES THEREOF FOR CAREERS, AFTER THEIR RELEASE, IN THE RACING INDUS- TRY, IN THE CARE OF HORSES FOR RECREATIONAL PURPOSES, OR AS LARGE ANIMAL VETERINARY ASSISTANTS OR TECHNICIANS; (D) SUPPORTING THE WORK OF THE PERFORMANCE HORSE REGISTRY OF THE UNITED STATES EQUESTRIAN FEDERATION TO HELP TO MARKET AND SELL A HIGHER VOLUME OF SUCH HORSES BY INFORMING PROSPECTIVE PURCHASERS OF THE PEDI- GREES OF THE HORSES UNDER CONSIDERATION AND THE SUITABILITY OF THE HORS- ES FOR THE PROSPECTIVE PURCHASERS' INTENDED USES; (E) SUPPORTING EXISTING OR ESTABLISHING NEW STANDARDBRED AND THOROUGH- BRED ADOPTION PROGRAMS THAT MAY BE SUPPORTED BY PRIVATE DONATIONS OR RACING INDUSTRY FUNDING SOURCES; (F) STUDYING AND ULTIMATELY PROMOTING THE ALTERATION OF CURRENT RACE HORSE TRAINING REGIMENS SO THAT RETIRED RACE HORSES CAN MORE READILY BE RETRAINED FOR OTHER ECONOMICALLY VIABLE USES; (G) DEVELOPING AND PROMOTING COLLEGE, UNIVERSITY, SECONDARY SCHOOL, BOCES, CORRECTIONAL OR OTHER EDUCATIONAL INTERNSHIP PROGRAMS TO SUPPLY STUDENTS TO STAFF PROGRAMS THAT PROMOTE THE MAINTENANCE OF RETIRED RACE HORSES OR THAT FACILITATE THE MARKETABILITY OF RETIRED RACE HORSES; (H) FACILITATING THE RETRAINING AND FINANCING OF THE RETRAINING OF RETIRED RACE HORSES TO BE USED FOR OTHER PURPOSES; AND (I) OTHER POTENTIAL USES FOR RETIRED RACE HORSES. 6. NOT LATER THAN TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION AND EVERY TWO YEARS THEREAFTER, THE COUNCIL SHALL REPORT TO THE GOVER- NOR, THE LEGISLATURE, THE COMMISSION, THE DEPARTMENT OF AGRICULTURE AND MARKETS, THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVELOPMENT FUND, AND THE AGRICULTURE AND NEW YORK STATE BREEDING DEVELOPMENT FUND ON ITS ACTIVITIES, FINDINGS, AND RECOMMENDATIONS. § 2. This act shall take effect immediately. PART XXX Section 1. Section 1367 of the racing, pari-mutuel wagering and breed- ing law, as added by chapter 174 of the laws of 2013, is amended to read as follows: § 1367. Sports wagering. 1. As used in this section: (a) "AFFILIATE" MEANS ANY OFF-TRACK BETTING CORPORATION, FRANCHISED CORPORATION, OR RACE TRACK LICENSED PURSUANT TO THIS CHAPTER, OR AN OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT LICENSED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW, WHICH HAS A MOBILE SPORTS WAGERING AGREEMENT WITH A CASINO PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE; (B) "AGENT" MEANS AN ENTITY THAT IS PARTY TO A CONTRACT WITH A LICENSED GAMING FACILITY AUTHORIZED TO OPERATE A SPORTS POOL AND IS APPROVED BY THE COMMISSION TO OPERATE A SPORTS POOL ON BEHALF OF SUCH LICENSED GAMING FACILITY; (C) "AUTHORIZED SPORTS BETTOR" MEANS AN INDIVIDUAL WHO IS PHYSICALLY PRESENT IN THIS STATE WHEN PLACING A SPORTS WAGER, WHO IS NOT A PROHIB- S. 7509--B 115 ITED SPORTS BETTOR, THAT PARTICIPATES IN SPORTS WAGERING OFFERED BY A CASINO. THE INTERMEDIATE ROUTING OF ELECTRONIC DATA IN CONNECTION WITH MOBILE SPORTS WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS IN WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE; (D) "Casino" means a licensed gaming facility at which gambling is conducted pursuant to the provisions of this article OR THE AGENT OF SUCH LICENSED GAMING FACILITY; [(b)] (E) "Commission" means the commission established pursuant to section one hundred two of this chapter; [(c)] (F) "Collegiate sport or athletic event" means a sport or athletic event offered or sponsored by or played in connection with a public or private institution that offers educational services beyond the secondary level; (G) "GLOBAL RISK MANAGEMENT" MEANS THE DIRECTION, MANAGEMENT, CONSUL- TATION AND/OR INSTRUCTION FOR PURPOSES OF MANAGING RISKS ASSOCIATED WITH SPORTS WAGERING CONDUCTED PURSUANT TO THIS SECTION AND INCLUDES THE SETTING AND ADJUSTMENT OF BETTING LINES, POINT SPREADS, OR ODDS AND WHETHER TO PLACE LAYOFF BETS AS PERMITTED BY THIS SECTION; [(d)] (H) "HIGH SCHOOL SPORT OR ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR PRIVATE INSTITUTION THAT OFFERS EDUCATION SERVICES AT THE SECONDARY LEVEL; (I) "HORSE RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT CONDUCTED IN NEW YORK STATE SUBJECT TO THE PROVISIONS OF ARTICLES TWO, THREE, FOUR, FIVE, SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY SPORT OR ATHLETIC EVENT CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH IF CONDUCTED IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER; (J) "IN-PLAY SPORTS WAGER" MEANS A SPORTS WAGER PLACED ON A SPORTS EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS; (K) "LAYOFF BET" MEANS A SPORTS WAGER PLACED BY A CASINO SPORTS POOL WITH ANOTHER CASINO SPORTS POOL; (L) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS; (M) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA- TION OF HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS- TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE BY ANY ELECTRONIC MEANS INCLUDING MOBILE APPLICATIONS AND INTERNET WEBSITES; (N) "OFFICIAL LEAGUE DATA" MEANS STATISTICS, RESULTS, OUTCOMES, AND OTHER DATA RELATING TO A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE RELEVANT SPORTS GOVERNING BODY OR AN ENTITY EXPRESSLY AUTHORIZED BY THE SPORTS GOVERNING BODY TO PROVIDE SUCH INFORMATION TO CASINOS; (O) "Operator" means a casino which has elected to operate a sports pool; [(e)] (P) "Professional sport or athletic event" means an event at which two or more persons participate in sports or athletic events and receive compensation in excess of actual expenses for their partic- ipation in such event; (Q) "PROHIBITED SPORTS BETTOR" MEANS: (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION; (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN; (III) ANY CASINO GAMING OR NON-GAMING EMPLOYEE AT THE CASINO THAT EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT CASINO; (IV) ANY CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OR OFFICER OR EMPLOYEE OF A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A CASINO IF S. 7509--B 116 SUCH PERSON IS DIRECTLY INVOLVED IN THE OPERATION OR OBSERVATION OF SPORTS WAGERING, OR THE PROCESSING OF SPORTS WAGERING CLAIMS OR PAYMENTS; (V) ANY PERSON SUBJECT TO A CONTRACT WITH THE COMMISSION IF SUCH CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING IN SPORTS WAGERING; (VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF ABODE OF ANY OF THE FOREGOING PERSONS AT THE SAME CASINO WHERE THE FOREGOING PERSON IS PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING; (VII) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC CONFIDENTIAL INFORMA- TION ABOUT SPORTS WAGERING; (VIII) ANY AMATEUR OR PROFESSIONAL ATHLETE IF THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY THE ATHLETE'S SPORTS GOVERNING BODY; (IX) ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND UMPIRE UNION PERSONNEL, AND EMPLOYEE REFEREE, COACH OR OFFICIAL OF A SPORTS GOVERNING BODY, IF THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY; (X) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN OTHER- WISE PROHIBITED SPORTS BETTOR; OR (XI) ANY MINOR; [(f)] (R) "Prohibited sports event" means any [collegiate sport or athletic event that takes place in New York or a sport or athletic event in which any New York college team participates regardless of where the event takes place] HIGH SCHOOL SPORT OR ATHLETIC EVENT; [(g)] (S) "Sports event" means any professional sport or athletic event and any collegiate sport or athletic event, except a prohibited sports event OR A HORSE RACING EVENT; [(h)] (T) "SPORTS GOVERNING BODY" MEANS THE ORGANIZATION THAT PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT TO A SPORTING EVENT AND PARTICIPANTS THEREIN; (U) "Sports pool" means the business of accepting wagers on any sports event by any system or method of wagering; [and (i)] (V) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY AN AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN SPORTS WAGER- ING OFFERED BY SUCH CASINO; (W) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC- IPATING IN A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED TO, IN-PERSON COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES AND MOBILE DEVICE APPLICATIONS. THE TERM "SPORTS WAGERING" SHALL INCLUDE, BUT IS NOT LIMITED TO, SINGLE-GAME BETS, TEASER BETS, PARLAYS, OVER-UN- DER BETS, MONEYLINE, POOLS, EXCHANGE WAGERING, IN-GAME WAGERING, IN-PLAY BETS, PROPOSITION BETS AND STRAIGHT BETS; (X) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE TOTAL OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF ALL SUMS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS TO SPORTS BETTORS SHALL NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE, OR (II) IN THE CASE OF EXCHANGE WAGERING PURSUANT TO THIS SECTION, THE COMMISSION ON WINNING SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE ISSUANCE TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF ANY S. 7509--B 117 PROMOTIONAL GAMING CREDIT SHALL NOT BE TAXABLE FOR THE PURPOSES OF DETERMINING SPORTS WAGERING GROSS REVENUE; (Y) "Sports wagering lounge" means an area wherein a sports pool is operated; (Z) "TIER ONE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS DETERMINED SOLELY BY THE FINAL SCORE OR FINAL OUTCOME OF THE SPORTS EVENT AND PLACED BEFORE THE SPORTS EVENT HAS BEGUN; (AA) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER; AND (BB) "TIER THREE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS NEITHER A TIER ONE NOR A TIER TWO SPORTS WAGER. 2. No gaming facility may conduct sports wagering until such time as there has been a change in federal law authorizing such or upon a ruling of a court of competent jurisdiction that such activity is lawful. 3. (a) In addition to authorized gaming activities, a licensed gaming facility may when authorized by subdivision two of this section operate a sports pool upon the approval of the commission and in accordance with the provisions of this section and applicable regulations promulgated pursuant to this article. The commission shall hear and decide promptly and in reasonable order all applications for a license to operate a sports pool, shall have the general responsibility for the implementa- tion of this section and shall have all other duties specified in this section with regard to the operation of a sports pool. The license to operate a sports pool shall be in addition to any other license required to be issued to operate a gaming facility. No license to operate a sports pool shall be issued by the commission to any entity unless it has established its financial stability, integrity and responsibility and its good character, honesty and integrity. No later than five years after the date of the issuance of a license and every five years thereafter or within such lesser periods as the commission may direct, a licensee shall submit to the commission such documentation or information as the commission may by regulation require, to demonstrate to the satisfaction of the executive director of the commission that the licensee continues to meet the requirements of the law and regulations. (b) A sports pool shall be operated in a sports wagering lounge located at a casino. The lounge shall conform to all requirements concerning square footage, design, equipment, security measures and related matters which the commission shall by regulation prescribe. (c) The operator of a sports pool shall establish or display the odds at which wagers may be placed on sports events. (d) An operator shall accept wagers on sports events only from persons physically present in the sports wagering lounge, OR THROUGH MOBILE SPORTS WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEV- EN-A OF THIS TITLE. A person placing a wager shall be at least twenty- one years of age. (e) AN OPERATOR MAY ALSO ACCEPT LAYOFF BETS AS LONG AS THE AUTHORIZED SPORTS POOL PLACES SUCH WAGERS WITH ANOTHER AUTHORIZED SPORTS POOL OR POOLS IN ACCORDANCE WITH REGULATIONS OF THE COMMISSION. A SPORTS POOL THAT PLACES A LAYOFF BET SHALL INFORM THE SPORTS POOL ACCEPTING THE WAGER THAT THE WAGER IS BEING PLACED BY A SPORTS POOL AND SHALL DISCLOSE ITS IDENTITY. (F) AN OPERATOR MAY UTILIZE GLOBAL RISK MANAGEMENT PURSUANT TO THE APPROVAL OF THE COMMISSION. (G) An operator shall not admit into the sports wagering lounge, or accept wagers from, any person whose name appears on the exclusion list. S. 7509--B 118 [(f)] (H) The holder of a license to operate a sports pool may contract with [an entity] ONE OR MORE AGENTS to conduct ANY OR ALL ASPECTS OF that operation, OR THE OPERATION OF MOBILE SPORTS WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE, INCLUDING BUT NOT LIMITED TO BRAND, MARKETING AND CUSTOMER SERVICE, in accordance with the regulations of the commission. [That entity] EACH AGENT shall obtain a license as a casino vendor enterprise prior to the execution of any such contract, and such license shall be issued pursuant to the provisions of section one thousand three hundred twenty-seven of this article and in accordance with the regulations promulgated by the commission. [(g)] (I) If any provision of this article or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this article which can be given effect without the invalid provision or application, and to this end the provisions of this article are severable. 4. (a) All persons employed directly in wagering-related activities conducted within a sports wagering lounge shall be licensed as a casino key employee or registered as a gaming employee, as determined by the commission. All other employees who are working in the sports wagering lounge may be required to be registered, if appropriate, in accordance with regulations of the commission. (b) Each operator of a sports pool shall designate one or more casino key employees who shall be responsible for the operation of the sports pool. At least one such casino key employee shall be on the premises whenever sports wagering is conducted. 5. Except as otherwise provided by this article, the commission shall have the authority to regulate sports pools and the conduct of sports wagering under this article to the same extent that the commission regu- lates other gaming. No casino shall be authorized to operate a sports pool unless it has produced information, documentation, and assurances concerning its financial background and resources, including cash reserves, that are sufficient to demonstrate that it has the financial stability, integrity, and responsibility to operate a sports pool. In developing rules and regulations applicable to sports wagering, the commission shall examine the regulations implemented in other states where sports wagering is conducted and shall, as far as practicable, adopt a similar regulatory framework. The commission shall promulgate regulations necessary to carry out the provisions of this section, including, but not limited to, regulations governing the: (a) amount of cash reserves to be maintained by operators to cover winning wagers; (b) acceptance of wagers on a series of sports events; (c) maximum wagers which may be accepted by an operator from any one patron on any one sports event; (d) type of wagering tickets which may be used; (e) method of issuing tickets; (f) method of accounting to be used by operators; (g) types of records which shall be kept; (h) use of credit and checks by patrons; (i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET; (J) THE USE OF GLOBAL RISK MANAGEMENT; (K) type of system for wagering; and [(j)] (L) protections for a person placing a wager. 6. Each operator shall adopt comprehensive house rules governing sports wagering transactions with its [patrons] AUTHORIZED SPORTS S. 7509--B 119 BETTORS. The rules shall specify the amounts to be paid on winning wagers and the effect of schedule changes. The house rules, together with any other information the commission deems appropriate, shall be conspicuously displayed in the sports wagering lounge and included in the terms and conditions of the account wagering system, and copies shall be made readily available to patrons. 7. (A) EACH CASINO THAT OFFERS SPORTS WAGERING SHALL ANNUALLY SUBMIT A REPORT TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION: (I) THE TOTAL AMOUNT OF SPORTS WAGERS RECEIVED FROM AUTHORIZED SPORTS BETTORS; (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS; (III) THE TOTAL AMOUNT OF SPORTS WAGERING GROSS REVENUE RECEIVED BY THE CASINO; (IV) THE TOTAL AMOUNT CONTRIBUTED TO THE SPORT BETTING INTEGRITY FUND PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION; (V) THE TOTAL AMOUNT OF WAGERS RECEIVED ON EACH SPORTS GOVERNING BODY'S SPORTING EVENTS; (VI) THE TOTAL NUMBER OF AUTHORIZED SPORTS BETTORS THAT REQUESTED TO EXCLUDE THEMSELVES FROM SPORTS WAGERING; AND (VII) ANY ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE. (B) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE COMMISSION SHALL BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF ANY CASINO, AT ANY TIME, TO ENSURE COMPLIANCE WITH THIS ARTICLE. (C) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE- GATE INFORMATION PROVIDED BY ALL CASINOS PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, WHICH SHALL BE PUBLISHED ON THE COMMISSION'S WEBSITE NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DEADLINE FOR THE SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN SUCH PARAGRAPH (A). 8. (A) WITHIN THIRTY DAYS OF THE END OF EACH CALENDAR QUARTER, A CASI- NO OFFERING SPORTS WAGERING SHALL REMIT TO THE COMMISSION A SPORTS WAGERING INTEGRITY FEE OF UP TO ONE-QUARTER OF ONE PERCENT OF THE AMOUNT WAGERED ON SPORTS EVENTS, HOWEVER, IN NO CASE SHALL THE INTEGRITY FEE BE GREATER THAN TWO PERCENT OF THE CASINO'S SPORTS WAGERING GROSS REVENUE. THE FEE SHALL BE REMITTED ON A FORM AS THE COMMISSION MAY REQUIRE, ON WHICH THE CASINO SHALL IDENTIFY THE PERCENTAGE OF WAGERING DURING THE REPORTING PERIOD ATTRIBUTABLE TO EACH SPORT GOVERNING BODY'S SPORTS EVENTS. (B) NO LATER THAN THE THIRTIETH OF APRIL OF EACH YEAR, A SPORTS GOVERNING BODY MAY SUBMIT A CLAIM FOR DISBURSEMENT OF THE INTEGRITY FUNDS REMITTED BY CASINOS IN THE PREVIOUS CALENDAR YEAR IN PRO RATA PROPORTION OF THE TOTAL AMOUNT WAGERED ON THEIR RESPECTIVE SPORTS EVENTS TO REIMBURSE THE SPORTS GOVERNING BODY FOR EXPENSES INCURRED FOR INTEG- RITY OPERATIONS. ELIGIBLE EXPENSES SHALL INCLUDE, BUT NOT BE LIMITED TO, INTEGRITY MONITORING EXPENSES, EXPENSES INCURRED RELATED TO INTEGRI- TY INVESTIGATIONS, PUBLIC RELATIONS EXPENSES ASSOCIATED WITH INTEGRITY ISSUES, AND ANY OTHER ELIGIBLE EXPENSES APPROVED BY THE COMMISSION. (C) EACH SPORTS GOVERNING BODY WHICH RECEIVES IN EXCESS OF FIFTY-THOU- SAND DOLLARS ANNUALLY FROM THE INTEGRITY FEE SHALL ANNUALLY SUBMIT A REPORT TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION: (I) THE TOTAL AMOUNT OF INTEGRITY FUND REIMBURSEMENT RECEIVED FROM NEW YORK; S. 7509--B 120 (II) A DETAILED SUMMARY OF THE FINAL DISPOSITIONS OF INTEGRITY INVES- TIGATIONS WHERE IT WAS DETERMINED THAT MISCONDUCT TOOK PLACE; (III) ANY ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE. (D) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE COMMISSION SHALL BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF ANY SPORTS GOVERNING BODY, AT ANY TIME, TO ENSURE COMPLIANCE WITH THIS ARTICLE. (E) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE- GATE INFORMATION PROVIDED BY ALL SPORTS GOVERNING BODIES PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION, WHICH SHALL BE PUBLISHED ON THE COMMISSION'S WEBSITE NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DEADLINE FOR THE SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN PARA- GRAPH (C) OF THIS SUBDIVISION. (F) AT THE END OF THE YEAR, ANY UNCLAIMED INTEGRITY FEE REVENUE SHALL BE DISTRIBUTED TO THE SPORTS GOVERNING BODIES WHICH WERE APPROVED TO RECEIVE FUNDING, ON A PRO RATA BASIS. 9. FOR THE PRIVILEGE OF CONDUCTING SPORTS WAGERING IN THE STATE, CASI- NOS SHALL PAY A TAX EQUIVALENT TO EIGHT AND ONE-HALF PERCENT OF THEIR SPORTS WAGERING GROSS REVENUE. 10. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING REVENUE FUND ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW EIGHTY-FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION; ANY INTEREST AND PENALTIES IMPOSED BY THE COMMISSION RELATING TO THOSE TAXES; ALL PENALTIES LEVIED AND COLLECTED BY THE COMMISSION; AND THE APPROPRIATE FUNDS, CASH OR PRIZES FORFEITED FROM SPORTS WAGERING. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF SUBDIVISION FIVE OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS- SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION PURSUANT TO PARAGRAPH C OF SUBDIVISION FIVE OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED IN THE SAME FORMULA AS MARKET ORIGIN CREDITS PURSUANT TO SECTION ONE HUNDRED FIFTEEN-B OF THIS CHAPTER. THE COMMISSION SHALL REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT TO SUBDIVISION NINE OF THIS SECTION, AT SUCH TIMES, UNDER SUCH CONDI- TIONS, AND IN SUCH DEPOSITORIES AS SHALL BE PRESCRIBED BY THE STATE COMPTROLLER. THE DEPOSITS SHALL BE DEPOSITED TO THE CREDIT OF THE STATE COMMERCIAL GAMING REVENUE FUND. THE COMMISSION SHALL REQUIRE A MONTHLY REPORT AND RECONCILIATION STATEMENT TO BE FILED WITH IT ON OR BEFORE THE TENTH DAY OF EACH MONTH, WITH RESPECT TO GROSS REVENUES AND DEPOSITS RECEIVED AND MADE, RESPECTIVELY, DURING THE PRECEDING MONTH. 11. THE COMMISSION MAY PERFORM AUDITS OF THE BOOKS AND RECORDS OF A CASINO, AT SUCH TIMES AND INTERVALS AS IT DEEMS APPROPRIATE, FOR THE PURPOSE OF DETERMINING THE SUFFICIENCY OF TAX PAYMENTS. IF A RETURN REQUIRED WITH REGARD TO OBLIGATIONS IMPOSED IS NOT FILED, OR IF A RETURN WHEN FILED OR IS DETERMINED BY THE COMMISSION TO BE INCORRECT OR INSUF- FICIENT WITH OR WITHOUT AN AUDIT, THE AMOUNT OF TAX DUE SHALL BE DETER- MINED BY THE COMMISSION. NOTICE OF SUCH DETERMINATION SHALL BE GIVEN TO THE CASINO LIABLE FOR THE PAYMENT OF THE TAX. SUCH DETERMINATION SHALL FINALLY AND IRREVOCABLY FIX THE TAX UNLESS THE CASINO AGAINST WHOM IT IS ASSESSED, WITHIN THIRTY DAYS AFTER RECEIVING NOTICE OF SUCH DETERMI- S. 7509--B 121 NATION, SHALL APPLY TO THE COMMISSION FOR A HEARING IN ACCORDANCE WITH THE REGULATIONS OF THE COMMISSION. 12. NOTHING IN THIS SECTION SHALL APPLY TO INTERACTIVE FANTASY SPORTS OFFERED PURSUANT TO ARTICLE FOURTEEN OF THIS CHAPTER. NOTHING IN THIS SECTION AUTHORIZES ANY ENTITY THAT CONDUCTS INTERACTIVE FANTASY SPORTS OFFERED PURSUANT TO ARTICLE FOURTEEN OF THIS CHAPTER TO CONDUCT SPORTS WAGERING UNLESS IT SEPARATELY QUALIFIES FOR, AND OBTAINS, AUTHORIZATION PURSUANT TO THIS SECTION. 13. A CASINO THAT IS ALSO LICENSED UNDER ARTICLE THREE OF THIS CHAP- TER, AND MUST MAINTAIN RACING PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED FIFTY-FIVE OF THIS CHAPTER, SHALL BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IN ACCORD- ANCE WITH THEIR LICENSE UNDER ARTICLE THREE OF THIS CHAPTER. NOTWITH- STANDING SUBPARAGRAPH (II) OF PARAGRAPH C OF SUBDIVISION TWO OF SECTION ONE THOUSAND EIGHT OF THIS CHAPTER, A CASINO LOCATED IN THE CITY OF SCHENECTADY SHALL BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL OFF- TRACK BETTING CORPORATION IN SUCH REGION AS THE CASINO IS LOCATED. ANY OTHER CASINO SHALL BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL OFF- TRACK BETTING CORPORATION IN SUCH REGION AS THE CASINO IS LOCATED. ANY PHYSICAL LOCATION WHERE PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IS OFFERED BY A CASINO AND CONDUCTED BY A REGIONAL OFF-TRACK BETTING CORPO- RATION IN ACCORDANCE WITH THIS SUBDIVISION SHALL BE DEEMED TO BE A BRANCH LOCATION OF THE REGIONAL OFF-TRACK BETTING CORPORATION IN ACCORD- ANCE WITH SECTION ONE THOUSAND EIGHT OF THIS CHAPTER. IN THE EVENT THAT THE COMMISSION APPROVES THE LOCATION OF SELF-SERVICE MOBILE SPORTS BETTING KIOSKS ON THE PREMISES OF AFFILIATES IN ACCORDANCE WITH PARA- GRAPH (D) OF SUBDIVISION FIVE OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS CHAPTER, SUCH KIOSKS SHALL NOT BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS. 14. A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES TO RESTRICT, LIMIT, OR EXCLUDE WAGERING ON ITS SPORTING EVENTS BY PROVIDING NOTICE IN THE FORM AND MANNER AS THE COMMISSION MAY REQUIRE. UPON RECEIVING SUCH NOTICE, THE COMMISSION SHALL REVIEW THE REQUEST IN GOOD FAITH, SEEK INPUT FROM THE CASINOS ON SUCH A REQUEST, AND IF THE COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO RESTRICT SUCH SPORTS WAGERING. IF THE COMMISSION DENIES A REQUEST, THE SPORTS GOVERN- ING BODY SHALL BE AFFORDED NOTICE AND THE RIGHT TO BE HEARD AND OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION IN ACCORDANCE WITH THE REGU- LATIONS OF THE COMMISSION. OFFERING OR TAKING WAGERS CONTRARY TO RESTRICTIONS PROMULGATED BY THE COMMISSION IS A VIOLATION OF THIS SECTION. IN THE EVENT THAT THE REQUEST IS IN RELATION TO AN EMERGENCY SITUATION, THE EXECUTIVE DIRECTOR OF THE COMMISSION MAY TEMPORARILY PROHIBIT THE SPECIFIC WAGER IN QUESTION UNTIL THE COMMISSION HAS THE OPPORTUNITY TO ISSUE TEMPORARY REGULATIONS ADDRESSING THE ISSUE. 15. (A) THE COMMISSION SHALL DESIGNATE THE DIVISION OF THE STATE POLICE TO HAVE PRIMARY RESPONSIBILITY FOR CONDUCTING, OR ASSISTING THE COMMISSION IN CONDUCTING, INVESTIGATIONS INTO ABNORMAL BETTING ACTIVITY, MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN. (B) THE COMMISSION AND CASINOS SHALL COOPERATE WITH INVESTIGATIONS CONDUCTED BY SPORTS GOVERNING BODIES OR LAW ENFORCEMENT AGENCIES, INCLUDING BUT NOT LIMITED TO PROVIDING OR FACILITATING THE PROVISION OF ACCOUNT-LEVEL BETTING INFORMATION AND AUDIO OR VIDEO FILES RELATING TO PERSONS PLACING WAGERS; PROVIDED, HOWEVER, THAT THE CASINO BE REQUIRED S. 7509--B 122 TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS BETTOR WITH A SPORTS GOVERNING BODY ONLY PURSUANT TO AN ORDER TO DO SO BY THE COMMISSION OR A LAW ENFORCEMENT AGENCY OR COURT OF COMPETENT JURISDICTION. (C) CASINOS SHALL IMMEDIATELY REPORT TO THE COMMISSION ANY INFORMATION RELATING TO: (I) CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE CASINO IN CONNECTION WITH ITS OPERATIONS; (II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS; (III) ANY POTENTIAL BREACH OF THE RELEVANT SPORTS GOVERNING BODY'S INTERNAL RULES AND CODES OF CONDUCT PERTAINING TO SPORTS WAGERING, AS THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO; (IV) ANY OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH FIXING; AND (V) SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF FUNDS DERIVED FROM ILLEGAL ACTIVITY, WAGERS TO CONCEAL OR LAUNDER FUNDS DERIVED FROM ILLEGAL ACTIVITY, USING AGENTS TO PLACE WAGERS, USING CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION. THE COMMISSION SHALL ALSO IMMEDIATELY REPORT INFORMATION RELATING TO CONDUCT DESCRIBED IN SUBPARAGRAPHS (II), (III) AND (IV) OF THIS PARA- GRAPH TO THE RELEVANT SPORTS GOVERNING BODY. (D) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED BY A SPORTS GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS REQUIRED BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER. 16. CASINOS SHALL USE WHATEVER DATA SOURCE THEY DEEM APPROPRIATE FOR DETERMINING THE RESULT OF SPORTS WAGERING INVOLVING TIER ONE SPORTS WAGERS. CASINOS SHALL ONLY USE OFFICIAL LEAGUE DATA IN ALL SPORTS WAGER- ING INVOLVING TIER TWO SPORTS WAGERS, IF THE RELEVANT SPORTS GOVERNING BODY POSSESSES A FEED OF OFFICIAL LEAGUE DATA, AND MAKES SUCH FEED AVAILABLE FOR PURCHASE BY THE CASINOS. A SPORTS GOVERNING BODY MAY NOTI- FY THE COMMISSION THAT IT DESIRES TO REQUIRE CASINOS TO USE OFFICIAL LEAGUE DATA IN SPORTS WAGERING INVOLVING SPECIFIC TIER THREE SPORTS WAGERS BY PROVIDING NOTICE IN THE FORM AND MANNER AS THE COMMISSION MAY REQUIRE. UPON RECEIVING SUCH NOTICE, THE COMMISSION SHALL REVIEW THE REQUEST, SEEK INPUT FROM THE CASINOS ON SUCH A REQUEST, AND IF THE COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO REQUIRE CASI- NOS TO USE OFFICIAL LEAGUE DATA ON SPORTS WAGERING INVOLVING SUCH TIER THREE SPORTS WAGERS IF THE RELEVANT SPORTS GOVERNING BODY POSSESSES A FEED OF OFFICIAL LEAGUE DATA, AND MAKES SUCH FEED AVAILABLE FOR PURCHASE BY THE CASINOS. NO CASINO SHALL ENTER INTO AN AGREEMENT WITH A SPORTS GOVERNING BODY TO BE THE EXCLUSIVE RECIPIENT OF THEIR OFFICIAL LEAGUE DATA. 17. (A) CASINOS SHALL MAINTAIN RECORDS OF ALL BETS AND WAGERS PLACED, INCLUDING PERSONALLY IDENTIFIABLE INFORMATION OF THE MOBILE SPORTS WAGERING BETTOR, AMOUNT AND TYPE OF BET, TIME THE BET WAS PLACED, LOCATION OF THE BET, INCLUDING IP ADDRESS IF APPLICABLE, THE OUTCOME OF THE BET, RECORDS OF ABNORMAL BETTING ACTIVITY, AND VIDEO CAMERA RECORDINGS IN THE CASE OF IN-PERSON WAGERS FOR AT LEAST THREE YEARS AFTER THE SPORTING EVENT OCCURS AND MAKE SUCH DATA AVAILABLE FOR INSPECTION UPON REQUEST OF THE COMMISSION OR AS REQUIRED BY COURT ORDER. (B) IF A SPORTS GOVERNING BODY HAS NOTIFIED THE COMMISSION THAT REAL- TIME INFORMATION SHARING FOR WAGERS PLACED ON SPORTING EVENTS IS NECES- SARY AND DESIRABLE, CASINOS SHALL SHARE IN REAL TIME, AT THE ACCOUNT- LEVEL, AND IN PSEUDONYMOUS FORM, THE INFORMATION REQUIRED TO BE RETAINED S. 7509--B 123 PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION (OTHER THAN VIDEO FILES) WITH THE COMMISSION, AND THE COMMISSION SHALL SHARE IN REAL TIME THE INFORMATION WITH THE SPORTS GOVERNING BODY OR ITS DESIGNEE WITH RESPECT TO WAGERS ON ITS SPORTING EVENTS. (C) THE COMMISSION SHALL COOPERATE WITH A SPORTS GOVERNING BODY AND CASINOS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF INFOR- MATION. 18. A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR. 19. SPORTS WAGERING CONDUCTED PURSUANT TO THE PROVISIONS OF THIS SECTION IS HEREBY AUTHORIZED. 20. THE CONDUCT OF SPORTS WAGERING IN VIOLATION OF THIS SECTION IS PROHIBITED. 21. ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO KNOWINGLY VIOLATES ANY PROCEDURE IMPLEMENTED UNDER THIS SECTION, OR SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE, SHALL BE LIABLE FOR A CIVIL PENALTY OF NOT MORE THAN FIVE THOUSAND DOLLARS FOR EACH VIOLATION, NOT TO EXCEED FIFTY THOUSAND DOLLARS FOR VIOLATIONS ARISING OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION. § 2. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 1367-a to read as follows: § 1367-A. MOBILE SPORTS WAGERING. 1. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "AFFILIATE" MEANS ANY OFF-TRACK BETTING CORPORATION, FRANCHISED CORPORATION, OR RACE TRACK LICENSED PURSUANT TO THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, OR AN OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT LICENSED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW, WHICH HAS A MOBILE SPORTS WAGERING AGREEMENT WITH A CASINO PURSUANT TO THIS SECTION; (B) "AGENT" MEANS AN ENTITY THAT IS PARTY TO A CONTRACT WITH A LICENSED GAMING FACILITY AUTHORIZED TO OPERATE A SPORTS POOL AND IS APPROVED BY THE COMMISSION TO OPERATE A SPORTS POOL ON BEHALF OF SUCH LICENSED GAMING FACILITY; (C) "AUTHORIZED SPORTS BETTOR" MEANS AN INDIVIDUAL WHO IS PHYSICALLY PRESENT IN THIS STATE WHEN PLACING A SPORTS WAGER, WHO IS NOT A PROHIB- ITED SPORTS BETTOR, THAT PARTICIPATES IN SPORTS WAGERING OFFERED BY A CASINO. THE INTERMEDIATE ROUTING OF ELECTRONIC DATA IN CONNECTION WITH MOBILE SPORTS WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS IN WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE; (D) "CASINO" MEANS A LICENSED GAMING FACILITY AT WHICH GAMBLING IS CONDUCTED PURSUANT TO THE PROVISIONS OF THIS ARTICLE OR THE AGENT OF SUCH LICENSED GAMING FACILITY; (E) "COLLEGIATE SPORT OR ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR PRIVATE INSTITUTION THAT OFFERS EDUCATION SERVICES BEYOND THE SECONDARY LEVEL; (F) "COMMISSION" MEANS THE COMMISSION ESTABLISHED PURSUANT TO SECTION ONE HUNDRED TWO OF THIS CHAPTER; (G) "HIGH SCHOOL SPORT OR ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR PRIVATE INSTITUTION THAT OFFERS EDUCATION SERVICES AT THE SECONDARY LEVEL; (H) "HORSE RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT CONDUCTED IN NEW YORK STATE SUBJECT TO THE PROVISIONS OF ARTICLES TWO, THREE, FOUR, FIVE, SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY SPORT OR S. 7509--B 124 ATHLETIC EVENT CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH IF CONDUCTED IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER; (I) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS; (J) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA- TION OF HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS- TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE BY ANY ELECTRONIC MEANS INCLUDING MOBILE APPLICATIONS AND INTERNET WEBSITES; (K) "OPERATOR" MEANS AN ENTITY OFFERING A MOBILE SPORTS WAGERING PLAT- FORM INCLUDING AN AGENT; (L) "PROFESSIONAL SPORT OR ATHLETIC EVENT" MEANS AN EVENT AT WHICH TWO OR MORE PERSONS PARTICIPATE IN SPORTS OR ATHLETIC EVENTS AND RECEIVE COMPENSATION IN EXCESS OF ACTUAL EXPENSES FOR THEIR PARTICIPATION IN SUCH EVENT; (M) "PROHIBITED SPORTS BETTOR" MEANS: (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION; (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN; (III) ANY CASINO GAMING OR NON-GAMING EMPLOYEE AT THE CASINO THAT EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT CASINO; (IV) ANY CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OR OFFICER OR EMPLOYEE OF A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A CASINO IF SUCH PERSON IS DIRECTLY INVOLVED IN THE OPERATION OR OBSERVATION OF SPORTS WAGERING, OR THE PROCESSING OF SPORTS WAGERING CLAIMS OR PAYMENTS; (V) ANY PERSON SUBJECT TO A CONTRACT WITH THE COMMISSION IF SUCH CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING IN SPORTS WAGERING; (VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF ABODE OF ANY OF THE FOREGOING PERSONS AT THE SAME CASINO WHERE THE FOREGOING PERSON IS PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING; (VII) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC CONFIDENTIAL INFORMA- TION ABOUT SPORTS WAGERING; (VIII) ANY AMATEUR OR PROFESSIONAL ATHLETE IF THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY THE ATHLETE'S SPORTS GOVERNING BODY; (IX) ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND UMPIRE UNION PERSONNEL, AND EMPLOYEE REFEREE, COACH OR OFFICIAL OF A SPORTS GOVERNING BODY, IF THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY; (X) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN OTHER- WISE PROHIBITED SPORTS BETTOR; OR (XI) ANY MINOR; (N) "PROHIBITED SPORTS EVENT" MEANS ANY HIGH SCHOOL SPORT OR ATHLETIC EVENT; (O) "SPORTS EVENT" MEANS ANY PROFESSIONAL SPORT OR ATHLETIC EVENT AND ANY COLLEGIATE SPORT OR ATHLETIC EVENT, EXCEPT A PROHIBITED SPORTS EVENT; (P) "SPORTS GOVERNING BODY" MEANS THE ORGANIZATION THAT PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT TO A SPORTING EVENT AND PARTICIPANTS THEREIN; (Q) "SPORTS POOL" MEANS THE BUSINESS OF ACCEPTING WAGERS ON ANY SPORTS EVENT BY ANY SYSTEM OR METHOD OF WAGERING; S. 7509--B 125 (R) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY AN AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN SPORTS WAGERING OFFERED BY SUCH CASINO; (S) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC- IPATING IN A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED TO, IN-PERSON COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES AND MOBILE DEVICE APPLICATIONS. THE TERM "SPORTS WAGERING" SHALL INCLUDE, BUT IS NOT LIMITED TO, SINGLE-GAME BETS, TEASER BETS, PARLAYS, OVER-UN- DER BETS, MONEYLINE, POOLS, EXCHANGE WAGERING, IN-GAME WAGERING, IN-PLAY BETS, PROPOSITION BETS AND STRAIGHT BETS; AND (T) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE TOTAL OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF ALL SUMS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS TO SPORTS BETTORS SHALL NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE; OR (II) IN THE CASE OF EXCHANGE WAGERING PURSUANT TO THIS SECTION, THE COMMISSION ON WINNING SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE ISSUANCE TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF ANY PROMOTIONAL GAMING CREDITS SHALL NOT BE TAXABLE FOR THE PURPOSES OF DETERMINING SPORTS WAGERING GROSS REVENUE. 2. (A) NO CASINO SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE A MOBILE SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW YORK STATE UNLESS REGISTERED WITH THE COMMISSION PURSUANT TO THIS SECTION. A CASINO MAY USE MULTIPLE MOBILE SPORTS WAGERING PLATFORMS PROVIDED THAT EACH PLATFORM HAS BEEN REVIEWED AND APPROVED BY THE COMMISSION. A CASINO MAY CONTRACT WITH ONE OR MORE INDEPENDENT OPERATORS TO PROVIDE ITS MOBILE SPORTS WAGERING PLATFORMS. (B) REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR FIVE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL. (C) THE COMMISSION SHALL PUBLISH A LIST OF ALL CASINOS REGISTERED TO OFFER MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO THIS SECTION ON THE COMMISSION'S WEBSITE FOR PUBLIC USE. (D) THE COMMISSION SHALL PROMULGATE REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION, INCLUDING THE DEVELOPMENT OF THE INITIAL FORM OF THE APPLICATION FOR REGISTRATION. SUCH REGULATIONS SHALL PROVIDE FOR THE REGISTRATION AND OPERATION OF MOBILE SPORTS WAGERING IN NEW YORK STATE AND SHALL INCLUDE, BUT NOT BE LIMITED TO, RESPONSIBLE PROTECTIONS WITH REGARD TO COMPULSIVE PLAY AND SAFEGUARDS FOR FAIR PLAY. 3. IN THE EVENT THAT A CASINO CONTRACTS WITH ONE OR MORE INDEPENDENT OPERATORS TO PROVIDE ITS MOBILE SPORTS WAGERING PLATFORMS, EACH INDE- PENDENT ENTITY SHALL OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE PRIOR TO THE EXECUTION OF ANY SUCH CONTRACT, AND SUCH LICENSE SHALL BE ISSUED PURSUANT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE HUNDRED TWENTY-SEVEN OF THIS ARTICLE AND IN ACCORDANCE WITH THE REGULATIONS PROMULGATED BY THE COMMISSION. 4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR SHALL IMPLEMENT THE FOLLOWING MEASURES: (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY USED ACCOUNT, AND PREVENT ANYONE THEY KNOW, OR SHOULD HAVE KNOWN TO BE A PROHIBITED SPORTS BETTOR FROM MAINTAINING ACCOUNTS OR PARTICIPATING IN ANY SPORTS WAGERING OFFERED BY SUCH OPERATOR; S. 7509--B 126 (II) ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF CERTAINTY, THAT AUTHORIZED SPORTS BETTORS ARE PHYSICALLY LOCATED WITHIN THE STATE WHEN ENGAGING IN MOBILE SPORTS BETTING; (III) PROHIBIT MINORS FROM PARTICIPATING IN ANY SPORTS WAGERING, WHICH INCLUDES: (1) IF AN OPERATOR BECOMES OR IS MADE AWARE THAT A MINOR HAS CREATED AN ACCOUNT, OR ACCESSED THE ACCOUNT OF ANOTHER, SUCH OPERATOR SHALL PROMPTLY, WITHIN NO MORE THAN TWO BUSINESS DAYS, REFUND ANY DEPOSIT RECEIVED FROM THE MINOR, WHETHER OR NOT THE MINOR HAS ENGAGED IN OR ATTEMPTED TO ENGAGE IN SPORTS WAGERING; PROVIDED, HOWEVER, THAT ANY REFUND MAY BE OFFSET BY ANY PRIZES ALREADY AWARDED; (2) EACH OPERATOR SHALL PROVIDE PARENTAL CONTROL PROCEDURES TO ALLOW PARENTS OR GUARDIANS TO EXCLUDE MINORS FROM ACCESS TO ANY SPORTS WAGER- ING OR PLATFORM. SUCH PROCEDURES SHALL INCLUDE A TOLL-FREE NUMBER TO CALL FOR HELP IN ESTABLISHING SUCH PARENTAL CONTROLS; AND (3) EACH OPERATOR SHALL TAKE APPROPRIATE STEPS TO CONFIRM THAT AN INDIVIDUAL OPENING AN ACCOUNT IS NOT A MINOR; (IV) WHEN REFERENCING THE CHANCES OR LIKELIHOOD OF WINNING IN ADVER- TISEMENTS OR UPON PLACEMENT OF A SPORTS WAGER, MAKE CLEAR AND CONSPICU- OUS STATEMENTS THAT ARE NOT INACCURATE OR MISLEADING CONCERNING THE CHANCES OF WINNING AND THE NUMBER OF WINNERS; (V) ENABLE AUTHORIZED SPORTS BETTORS TO EXCLUDE THEMSELVES FROM SPORTS WAGERING AND TAKE REASONABLE STEPS TO PREVENT SUCH BETTORS FROM ENGAGING IN SPORTS WAGERING FROM WHICH THEY HAVE EXCLUDED THEMSELVES; (VI) PERMIT ANY AUTHORIZED SPORTS BETTOR TO PERMANENTLY CLOSE AN ACCOUNT REGISTERED TO SUCH BETTOR, ON ANY AND ALL PLATFORMS SUPPORTED BY SUCH OPERATOR, AT ANY TIME AND FOR ANY REASON; (VII) OFFER INTRODUCTORY PROCEDURES FOR AUTHORIZED SPORTS BETTORS, THAT SHALL BE PROMINENTLY DISPLAYED ON THE MAIN PAGE OF SUCH OPERATOR PLATFORM, THAT EXPLAIN SPORTS WAGERING; (VIII) IMPLEMENT MEASURES TO PROTECT THE PRIVACY AND ONLINE SECURITY OF AUTHORIZED SPORTS BETTORS AND THEIR ACCOUNTS; (IX) OFFER ALL AUTHORIZED SPORTS BETTORS ACCESS TO HIS OR HER ACCOUNT HISTORY AND ACCOUNT DETAILS; (X) ENSURE AUTHORIZED SPORTS BETTORS' FUNDS ARE PROTECTED UPON DEPOSIT AND SEGREGATED FROM THE OPERATING FUNDS OF SUCH OPERATOR AND OTHERWISE PROTECTED FROM CORPORATE INSOLVENCY, FINANCIAL RISK, OR CRIMINAL OR CIVIL ACTIONS AGAINST SUCH OPERATOR; (XI) LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION CONCERN- ING ASSISTANCE FOR COMPULSIVE PLAY IN NEW YORK STATE, INCLUDING A TOLL- FREE NUMBER DIRECTING CALLERS TO REPUTABLE RESOURCES CONTAINING FURTHER INFORMATION, WHICH SHALL BE FREE OF CHARGE; AND (XII) ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED SPORTS EVENT. (B) OPERATORS SHALL NOT DIRECTLY OR INDIRECTLY OPERATE, PROMOTE, OR ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE. (C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB- ITED SPORTS EVENT. (D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR. (E) ADVERTISEMENTS FOR CONTESTS AND PRIZES OFFERED BY AN OPERATOR SHALL NOT TARGET PROHIBITED SPORTS BETTORS, MINORS, OR SELF-EXCLUDED PERSONS. (F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT- ING PROGRAMS FOR ANY CONTEST AND ENSURE THAT MEASURES ARE IN PLACE TO S. 7509--B 127 DETER, DETECT AND, TO THE EXTENT REASONABLY POSSIBLE, PREVENT CHEATING, INCLUDING COLLUSION, AND THE USE OF CHEATING DEVICES, INCLUDING USE OF SOFTWARE PROGRAMS THAT SUBMIT SPORTS WAGERS UNLESS OTHERWISE APPROVED BY THE COMMISSION. (G) OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON THE MAIN PAGE OF SUCH OPERATOR'S PLATFORM FOR THE FILING OF A COMPLAINT BY AN AUTHORIZED SPORTS BETTOR AGAINST SUCH OPERATOR. AN INITIAL RESPONSE SHALL BE GIVEN BY SUCH OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN FORTY-EIGHT HOURS. A COMPLETE RESPONSE SHALL BE GIVEN BY SUCH OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN TEN BUSINESS DAYS. AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION. (H) OPERATORS SHALL MAINTAIN RECORDS OF ALL ACCOUNTS BELONGING TO AUTHORIZED SPORTS BETTORS AND RETAIN SUCH RECORDS OF ALL TRANSACTIONS IN SUCH ACCOUNTS FOR THE PRECEDING FIVE YEARS. 5. (A) SUBJECT TO REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS MAY ENTER INTO AGREEMENTS WITH AFFILIATES TO ALLOW FOR AUTHORIZED BETTORS TO SIGN UP TO CREATE AND FUND ACCOUNTS ON THEIR MOBILE SPORTS WAGERING PLATFORM OR PLATFORMS. (B) AUTHORIZED SPORTS BETTORS MUST SIGN UP TO CREATE THEIR ACCOUNT ON A MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN AFFILIATE OF A CASINO. (C) AUTHORIZED SPORTS BETTORS MAY DEPOSIT FUNDS IN THEIR ACCOUNT ON A MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN AFFILIATE OF A CASINO, ELECTRONICALLY RECOGNIZED PAYMENT METHODS, OR ANY OTHER MEANS APPROVED BY THE COMMISSION. (D) SUBJECT TO APPROVAL OF THE COMMISSION, AND IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS MAY ENTER INTO AGREE- MENTS WITH AFFILIATES TO LOCATE SELF-SERVICE MOBILE SPORTS BETTING KIOSKS, WHICH ARE OWNED, OPERATED AND MAINTAINED BY THE CASINO, AND CONNECTED VIA THE INTERNET TO THE CASINO, UPON THE PREMISES OF THE AFFILIATE. § 3. Section 104 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 24 to read as follows: 24. TO REGULATE SPORTS WAGERING IN NEW YORK STATE. § 4. Subdivision 15 of section 1401 of the racing, pari-mutuel wager- ing and breeding law, as added by chapter 237 of the laws of 2016, is amended to read as follows: 15. "Prohibited sports event" shall mean any [collegiate sport or athletic event, any] high school sport or athletic event or any horse racing event. § 5. Severability clause. If any provision of this act or application thereof shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of the act, but shall be confined in its opera- tion to the provision thereof directly involved in the controversy in which the judgment shall have been rendered. § 6. This act shall take effect on the same date and in the same manner as section 1367 of the racing, pari-mutuel wagering and breeding law pursuant to subdivision (c) of section 52 of chapter 174 of the laws of 2013, takes effect. PART YYY Section 1. The opening paragraph of subdivision 7 of section 221 of the racing, pari-mutuel wagering and breeding law, as amended by section S. 7509--B 128 2 of part SS of chapter 59 of the laws of 2017, is amended to read as follows: 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 [seventeen] EIGHTEEN 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 twenty. In the cases of multiple ownerships and limited racing appearances, the fund shall equitably adjust the sum required. § 2. Paragraph (a) of subdivision 9 of section 208 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part PP of chapter 60 of the laws of 2016, is amended to read as follows: (a) The franchised corporation shall maintain a separate account for all funds held on deposit in trust by the corporation for individual horsemen's accounts. Purse funds shall be paid by the corporation as required to meet its purse payment obligations. Funds held in horsemen's accounts shall only be released or applied as requested and directed by the individual horseman. For two thousand [sixteen] EIGHTEEN the New York Jockey Injury Compensation Fund, Inc. may use up to two million dollars from the account established pursuant to this subdivision to pay the annual costs required by section two hundred twenty-one of this article. § 3. Paragraph (c) of subdivision 9 of section 208 of the racing, pari-mutuel wagering and breeding law is relettered paragraph (e) and two new paragraphs (c) and (d) are added to read as follows: (C) THE FRANCHISED CORPORATION SHALL ESTABLISH AND MAINTAIN A SEPARATE ACCOUNT FOR FUNDS TO BE HELD ON DEPOSIT IN TRUST BY THE FRANCHISED CORPORATION FOR THE HORSEMEN'S ORGANIZATION RECOGNIZED PURSUANT TO SECTION TWO HUNDRED TWENTY-EIGHT OF THIS ARTICLE. STARTING IN TWO THOU- SAND EIGHTEEN AND ANNUALLY THEREAFTER, FUNDS FROM THE ACCOUNT ESTAB- LISHED PURSUANT TO THIS SUBDIVISION SHALL BE DEPOSITED IN THE SEPARATE ACCOUNT ESTABLISHED UNDER THIS PARAGRAPH IN AN AMOUNT TO BE AGREED UPON BY THE FRANCHISED CORPORATION AND THE HORSEMEN'S ORGANIZATION RECOGNIZED PURSUANT TO SECTION TWO HUNDRED TWENTY-EIGHT OF THIS ARTICLE. FUNDS HELD IN THIS ACCOUNT SHALL BE USED BY THE APPROPRIATELY RECOGNIZED HORSEMEN'S ORGANIZATION SOLELY AS COLLATERAL TO SECURE WORKERS' COMPEN- S. 7509--B 129 SATION INSURANCE COVERAGE, INCLUDING LOSS SENSITIVE PROGRAMS, INCLUDING THROUGH THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC. (D) IN THE EVENT THE HORSEMEN'S ORGANIZATION RECOGNIZED PURSUANT TO SECTION TWO HUNDRED TWENTY-EIGHT OF THIS ARTICLE DETERMINES THAT THE FUNDS ARE NO LONGER NEEDED AS COLLATERAL TO SECURE WORKERS' COMPENSATION INSURANCE COVERAGE, THEN, UPON AGREEMENT BY THE FRANCHISED CORPORATION AND THE APPROPRIATELY RECOGNIZED HORSEMEN'S ORGANIZATION, FUNDS IN THE SEPARATE ACCOUNT ESTABLISHED UNDER PARAGRAPH (C) OF THIS SUBDIVISION SHALL BE RETURNED TO THE ACCOUNT ESTABLISHED PURSUANT TO THIS SUBDIVI- SION. § 4. This act shall take effect immediately. PART ZZZ Section 1. Paragraph 3 of subdivision (t) of section 1115 of the tax law is renumbered paragraph 4 and a new paragraph 3 is added to read as follows: (3) RECEIPTS FROM EVERY SALE, EXCEPT FOR RESALE, OF THE SERVICE OF INFLATING OF TIRES AND OTHER INFLATABLE TANGIBLE PERSONAL PROPERTY AND CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH SERVICE, WHERE THE PURCHASER OR USER OF THE SERVICE INFLATES THE TIRES OR OTHER SUCH TANGIBLE PERSONAL PROPERTY AT THE FACILITY WHERE THE AIR STAND OR TIRE INFLATION EQUIPMENT IS LOCATED, BY MEANS EXCLUSIVELY OF COIN-OPERATED EQUIPMENT AND NEITHER THE VENDOR OPERATING THE FACILITY NOR ANY EMPLOYEE OF THE VENDOR ASSISTS THE PURCHASER IN INFLATING THE TIRES OR OTHER PROPERTY, SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE, TO THE EXTENT OF THE AMOUNT OF MONEY OR VALUE, IN MONEY, OF TOKENS DEPOSITED IN SUCH COIN-OPERATED EQUIPMENT BY THE PURCHASER OF THE SERVICE. § 2. This act shall take effect April 1, 2019. PART AAAA Section 1. Subdivision 1 of section 483 of the real property tax law, as amended by chapter 544 of the laws of 2008, is amended to read as follows: 1. Structures and buildings essential to the operation of lands actively devoted to agricultural or horticultural use and actually used and occupied to carry out such operation which are constructed or recon- structed subsequent to January first, nineteen hundred sixty-nine and prior to January first, two thousand [nineteen] TWENTY-NINE shall be exempt from taxation to the extent of any increase in value thereof by reason of such construction or reconstruction for a period of ten years. § 2. This act shall take effect immediately. PART BBBB Section 1. The article heading of article 14-A of the education law, as added by chapter 546 of the laws of 1997, is amended to read as follows: NEW YORK STATE [COLLEGE] EDUCATION CHOICE TUITION SAVINGS PROGRAM § 2. Section 695 of the education law, as added by chapter 546 of the laws of 1997, is amended to read as follows: S. 7509--B 130 § 695. Program established. There is hereby established the [college] EDUCATION choice tuition savings program and such program shall be known and may be cited as the "New York state [college] EDUCATION choice tuition savings program". § 3. Subdivision 5 of section 695-b of the education law, as amended by chapter 535 of the laws of 2000, is amended to read as follows: 5. "Eligible educational institution" shall mean any institution of higher education defined as an eligible educational institution in section 529(e)(5) of the Internal Revenue Code of 1986, as amended, AND ANY NONPUBLIC ELEMENTARY OR SECONDARY SCHOOL FOR WHICH TUITION EXPENSES ARE CHARGED OR ANY PUBLIC ELEMENTARY OR SECONDARY SCHOOL. § 4. Subdivision 10 of section 695-e of the education law, as amended by chapter 593 of the laws of 2003, is amended to read as follows: 10. The comptroller shall promulgate rules or regulations to prevent contributions on behalf of a designated beneficiary in excess of an amount that would cause the aggregate account balance for all accounts for a designated beneficiary to exceed a maximum account balance, as established from time to time by the comptroller and the corporation on the basis of NONPUBLIC ELEMENTARY AND SECONDARY TUITION COSTS, PUBLIC ELEMENTARY OR SECONDARY SCHOOL COSTS, OR THE higher education costs in the state, with adequate safeguards to prevent more contributions than necessary to provide for the qualified higher education costs of the beneficiary, as required to maintain the program as a "qualified tuition program" under section 529 of the Internal Revenue Code of 1986, as amended. § 5. Paragraphs 32 and 33 of subsection (c) of section 612 of the tax law, paragraph 32 as amended by chapter 81 of the laws of 2008, para- graph 33 as added by chapter 546 of the laws of 1997, are amended to read as follows: (32) Contributions made during the taxable year by an account owner to one or more family tuition accounts established under the New York state [college] EDUCATION choice tuition savings program provided for under article fourteen-A of the education law, to the extent not deductible or eligible for credit for federal income tax purposes, provided, however, the exclusion provided for in this paragraph shall not exceed five thou- sand dollars for an individual or head of household, and for married couples who file joint tax returns, shall not exceed ten thousand dollars; provided, further, that such exclusion shall be available only to the account owner and not to any other person. (33) Distributions from a family tuition account established under the New York state [college] EDUCATION choice tuition savings program provided for under article fourteen-A of the education law, to the extent includible in gross income for federal income tax purposes. § 6. This act shall take effect immediately and shall apply to contributions and distributions made on and after January 1, 2018. PART CCCC Section 1. Section 452 of the tax law, as amended by chapter 32 of the laws of 2016, is amended to read as follows: § 452. Imposition of tax. [1.] On and after October first, nineteen hundred ninety-nine, a tax is hereby imposed and shall be paid upon the gross receipts of every person holding any professional or amateur boxing, sparring, COMBATIVE SPORT or wrestling match or exhibition in this state. Such tax shall be imposed on such gross receipts, exclusive of any federal taxes, as follows: S. 7509--B 131 (a) three percent of gross receipts from ticket sales, except that in no event shall the tax imposed by this [paragraph] SUBDIVISION exceed fifty thousand dollars for any match or exhibition; (b) three percent of THE SUM OF (I) gross receipts from broadcasting rights, AND (II) GROSS RECEIPTS FROM DIGITAL STREAMING OVER THE INTER- NET, except that in no event shall the tax imposed by this [paragraph] SUBDIVISION exceed fifty thousand dollars for any match or exhibition. [2. On and after the effective date of this subdivision, a tax is hereby imposed and shall be paid upon the gross receipts of every person holding any authorized combative sport in this state, other than any professional or amateur boxing, sparring or wrestling exhibition or match, exclusive of any federal taxes as follows: (a) eight and one-half percent of gross receipts from ticket sales; and (b) three percent of the sum of (i) gross receipts from broadcasting rights, and (ii) gross receipts from digital streaming over the inter- net, except that in no event shall such tax imposed pursuant to this paragraph exceed fifty thousand dollars for any match or exhibition.] § 2. This act shall take effect immediately, and shall apply to all taxable years beginning on or after January 1, 2019. PART DDDD Section 1. Legislative intent. This legislation would allow a taxpayer who does not feel that the taxes in the State of New York are high enough to contribute an additional amount to the state general fund. § 2. The tax law is amended by adding a new section 630-f to read as follows: § 630-F. GIFT FOR NEW YORK STATE GENERAL FUND. AN INDIVIDUAL IN ANY TAXABLE YEAR MAY ELECT TO CONTRIBUTE TO THE STATE'S GENERAL FUND. THE CONTRIBUTION SHALL BE IN ANY WHOLE DOLLAR AMOUNT AND SHALL NOT REDUCE THE AMOUNT OF STATE TAX OWED BY SUCH INDIVIDUAL. THE COMMISSIONER SHALL INCLUDE SPACE ON THE PERSONAL INCOME TAX RETURN TO ENABLE A TAXPAYER TO MAKE SUCH CONTRIBUTION. NOTWITHSTANDING ANY OTHER PROVISION OF LAW ALL REVENUES COLLECTED PURSUANT TO THIS SECTION SHALL BE CREDITED TO THE STATE'S GENERAL FUND AND USED ONLY FOR THOSE PURPOSES ENUMERATED IN SECTION SEVENTY-TWO OF THE STATE FINANCE LAW. § 3. This act shall take effect immediately. PART EEEE Section 1. Section 43 of the tax law, as added by section 2 of part Q of chapter 59 of the laws of 2017, is renumbered section 44 and a new section 45 is added to read as follows: § 45. 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. S. 7509--B 132 (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. (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-FOUR OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (JJJ) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL BE FIFTY 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- S. 7509--B 133 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 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-FOUR. (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 (JJJ). § 2. Subdivision 52 of section 210-B of the tax law, as added by section 4 of part DDD of chapter 59 of the laws of 2017, is renumbered subdivision 53 and a new subdivision 54 is added to read as follows: 54. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-FIVE OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION FORTY-FIVE 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 S. 7509--B 134 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 (xliv) to read as follows: (XLIV) EMPIRE STATE DIGITAL AMOUNT OF CREDIT GAMING MEDIA PRODUCTION UNDER SUBDIVISION CREDIT UNDER SUBSECTION (JJJ) FIFTY-FOUR OF SECTION TWO HUNDRED TEN-B § 4. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows: (JJJ) EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (1) ALLOW- ANCE OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY- FIVE OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION FORTY-FIVE 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 state commissioner of economic development, after consulting with the state commissioner of taxation and finance, shall promulgate regulations by December 31, 2018 to establish procedures for the allo- cation of tax credits as required by 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 evaluate the applications, the documentation that will be provided to taxpayers 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. 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 December 31, 2018 deadline. § 6. Subdivision 23 of section 352 of the economic development law, as amended by section 1 of part K of chapter 59 of the laws of 2017, is amended to read as follows: 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 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. § 7. The economic development law is amended by adding a new section 243 to read as follows: § 243. REPORTS ON THE DIGITAL GAMING INDUSTRY 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 CHAIR- PERSONS 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 S. 7509--B 135 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 SECTION FORTY-FIVE OF THE TAX LAW DURING THE HALF YEAR, BROKEN DOWN BY MONTH; (B) THE NUMBER OF DIGITAL GAMING PROJECTS, WHICH HAVE BEEN ALLOCATED TAX CREDITS OF LESS THAN ONE MILLION DOLLARS PER PROJECT, AND THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED TO THOSE PROJECTS DISTRIBUTED BY REGION PURSUANT TO SUBDIVISION (B) OF SECTION FORTY-FIVE OF THE TAX LAW; (C) THE NUMBER OF 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 SECTION FORTY-FIVE OF THE TAX LAW; (D) A LIST OF EACH ELIGIBLE DIGITAL GAMING PROJECT, WHICH HAS BEEN ALLOCATED A TAX CREDIT ENUMERATED BY REGION PURSUANT TO SUBDIVISION (B) OF SECTION FORTY-FIVE OF THE TAX LAW, AND FOR EACH OF THOSE PROJECTS, (I) THE ESTIMATED NUMBER OF EMPLOYEES ASSOCIATED WITH THE PROJECT, (II) THE ESTIMATED QUALIFYING COSTS FOR THE PROJECTS, (III) THE ESTIMATED TOTAL COSTS OF THE PROJECT, (IV) THE CREDIT 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-FIVE 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 DIGITAL GAMING PRODUCTION CREDIT PROGRAM INCLUDING THE EFFICIENCY OF OPERATIONS, RELIABILITY 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 SUBDIVISION (B) OF SECTION FORTY-FIVE OF THE TAX LAW; AND (C) ANY OTHER INFORMATION OR STATISTICAL INFORMATION THAT THE COMMIS- SIONER OF ECONOMIC DEVELOPMENT DEEMS TO BE USEFUL IN ANALYZING THE EFFECTS OF THE PROGRAMS. S. 7509--B 136 § 8. This act shall take effect immediately and shall apply to taxable years beginning on January 1, 2019 and before January 1, 2024; provided that this act shall expire and be deemed repealed December 31, 2023. PART FFFF Section 1. This act shall be known and may be cited as the "local government jobs and revenue protection act of 2018." § 2. Legislative intent. New York state, New York city and county governments throughout the state are the recipients of hundred of millions of dollars each year under the master settlement agreement. The total of all master settlement payments to these governments over the years has so far exceeded fourteen billion dollars. These funds are vitally important and any disruption in these payments would put the recipients at financial risk. The legislature hereby finds that it is in the public interest to enact the "local government jobs and revenue protection act of 2018" in order to continue the flow of these funds to the state and local governments which depend on this revenue during the appeal of a judgement against master settlement agreement signatories, affiliates, successors and non-participating manufacturers. § 3. The civil practice law and rules is amended by adding a new section 5519-a to read as follows: § 5519-A. STAY OF ENFORCEMENT FOR TOBACCO PRODUCT MASTER SETTLEMENT AGREEMENT PARTICIPATING OR NON-PARTICIPATING MANUFACTURERS OR THEIR SUCCESSORS OR AFFILIATES. (A) IN CIVIL LITIGATION UNDER ANY LEGAL THEORY INVOLVING A PARTICIPATING MANUFACTURER OR A NON-PARTICIPATING MANUFAC- TURER, AS THOSE TERMS ARE DEFINED IN THE MASTER SETTLEMENT AGREEMENT, OR ANY OF THEIR SUCCESSORS OR AFFILIATES, THE UNDERTAKING REQUIRED DURING THE PENDENCY OF ALL APPEALS OR DISCRETIONARY REVIEWS BY ANY APPELLATE COURTS IN ORDER TO STAY THE EXECUTION OF ANY JUDGMENT OR ORDER GRANTING LEGAL, EQUITABLE OR OTHER RELIEF DURING THE ENTIRE COURSE OF APPELLATE REVIEW, INCLUDING REVIEW BY THE UNITED STATES SUPREME COURT, SHALL BE SET PURSUANT TO THE APPLICABLE PROVISIONS OF LAW OR COURT RULES; PROVIDED, HOWEVER THAT THE TOTAL UNDERTAKING REQUIRED OF ALL APPELLANTS COLLECTIVELY SHALL NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS, REGARD- LESS OF THE VALUE OF THE JUDGMENT APPEALED. (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, UPON PROOF BY A PREPONDERANCE OF THE EVIDENCE, BY AN APPELLEE, THAT AN APPELLANT IS DISSIPATING ASSETS OUTSIDE THE COURSE OF ORDINARY BUSINESS TO AVOID PAYMENT OF A JUDGMENT, A COURT MAY REQUIRE THE APPELLANT TO POST A BOND IN AN AMOUNT UP TO THE TOTAL AMOUNT OF THE JUDGEMENT. § 4. This act shall take effect on the thirtieth day after it shall have become a law, and shall apply to any cause of action pending on or filed on or after such effective date. PART GGGG Section 1. Section 1261 of the tax law is amended by adding a new subdivision (h) to read as follows: (H) NOTWITHSTANDING ANY PROVISION OF STATE OR LOCAL LAW, ORDINANCE OR RESOLUTION TO THE CONTRARY, FROM THE MONEYS COLLECTED PURSUANT TO SECTION TWELVE HUNDRED TEN OF THIS ARTICLE FOR THE RENT OF EVERY OCCU- PANCY OF A ROOM OR ROOMS, AS DESCRIBED IN SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS CHAPTER, IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, FOUR PERCENT OF SUCH MONEYS OR THE FIRST THREE HUNDRED THOUSAND DOLLARS OF SUCH MONEYS COLLECTED DURING EACH CALENDAR S. 7509--B 137 YEAR, WHICHEVER SHALL BE LESS, IN EACH BOROUGH OF SUCH CITY SHALL BE DEPOSITED INTO A SEPARATE ACCOUNT BY THE COMMISSIONER WITH THE MONEYS IN EACH SUCH ACCOUNT BEING EXPENDED SOLELY FOR THE PURPOSE OF PROMOTING TOURISM IN THE BOROUGH TO WHICH EACH ACCOUNT RELATES. THE MONEYS IN EACH ACCOUNT SHALL BE MADE AVAILABLE FOR TOURISM PROMOTION PURPOSES, EXCLU- SIVE OF ADMINISTRATIVE EXPENSES, TO AN ENTITY DESIGNATED BY THE BOROUGH PRESIDENT AND APPROVED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT AS RESPONSIBLE FOR TOURISM PROMOTION IN THE BOROUGH. § 2. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a 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 GGGG of this act shall be as specifically set forth in the last section of such Parts.
2017-S7509C (ACTIVE) - Details
- See Assembly Version of this Bill:
- A9509
- Law Section:
- Executive Law
- Laws Affected:
- Amd Various Laws, generally
2017-S7509C (ACTIVE) - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption
2017-S7509C (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 7509--C A. 9509--C S E N A T E - A S S E M B L Y January 18, 2018 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- 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); to amend the real property tax law, in relation to making the STAR income verification program manda- tory; to amend the tax law, in relation to the calculation of income for basic STAR purposes; to repeal subparagraphs (v) and (vi) of para- graph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and to repeal section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); inten- tionally omitted (Part C); intentionally omitted (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making tech- nical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general municipal law and section 2023-b of the education law, relating thereto (Part E); intentionally omitted (Part F); to amend the real property tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); to amend
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12674-08-8 S. 7509--C 2 A. 9509--C the tax law and the administrative code of the city of New York, in relation to extending the statute of limitations for assessing tax on amended returns (Part H); to amend the tax law, in relation to provid- ing for employee wage reporting consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); intentionally omitted (Part L); intentionally omitted (Part M); intentionally omitted (Part N); to amend the tax law and the administrative code of the city of New York, in relation to the defi- nition of resident for tax purposes of the personal income tax (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); intentionally omitted (Part S); intentionally omitted (Part T); intentionally omitted (Part U); intentionally omit- ted (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); intentionally omitted (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes in certain counties, in relation to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); intentionally omitted (Part AA); intentionally omitted (Part BB); intentionally omitted (Part CC); intentionally omitted (Part DD); to amend the racing, pari-mutuel wagering and breeding law, in relation to adjusting the franchise payment; and to establish an advi- sory committee to review the structure, operations and funding of equine drug testing and research (Part EE); intentionally omitted (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simul- casting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); to amend the state finance law, in relation to the commercial gaming revenue fund; and to repeal subdivi- sion 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); intentionally omitted (Part II); to amend the tax law and the administrative code of the city of New York, in relation to addressing changes made to the internal revenue code by Public Law 115-97 (Part JJ); to amend the tax law, in relation to federal gross income and federal deductions allowed pursuant to the internal revenue code; and to amend the administrative code of the city of New York, in relation to the taxation of business corporations S. 7509--C 3 A. 9509--C (Part KK); to amend the state finance law, in relation to establishing the charitable gifts trust fund and the health charitable account, and the elementary and secondary education charitable account; provides credits for contributions to Health Research Inc. and University foun- dations; to amend the tax law, in relation to credits for contrib- utions to accounts in the charitable gifts trust fund; to amend the education law and the general municipal law, in relation to authoriz- ing school districts, counties and New York city to establish charita- ble funds; and to amend the real property tax law, in relation to authorizing such localities to provide a credit against real property taxes for such contributions (Part LL); to amend the tax law and the state finance law, in relation to the imposition of an employer compensation expense tax (Part MM); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York Jockey Injury Compensation Fund, Inc. (Part NN); to amend the racing, pari-mutuel wagering and breeding law, in relation to the disposition of net revenue (Part OO); to amend the public housing law and the tax law, in relation to the state low-income housing credit (Part PP); to amend the tax law, in relation to extending certain tax rates (Part QQ); to amend the tax law, in relation to the credit for rehabilitation of historical properties (Part RR); to amend the tax law and the adminis- trative code of the city of New York, in relation to the personal income tax on residents of the city of New York (Part SS); to amend the tax law, in relation to capital awards to vendor tracks (Part TT); to amend the vehicle and traffic law, in relation to the disposition of certain proceeds collected by the commissioner of motor vehicles; to amend the transportation law and the tax law, in relation to the disposition of certain fees and assessments; to amend the state finance law, in relation to the special obligation reserve and payment account of the dedicated highway and bridge trust fund; to amend the public authorities law, in relation to the metropolitan transportation authority finance fund; and to amend the state finance law, in relation to the metropolitan transportation authority financial assistance fund; to repeal subdivision 5 of section 317 of the vehicle and traffic law relating to certain assessments charged and collected by the commissioner of motor vehicles; to repeal subdivision 6 of section 423-a of the vehicle and traffic law relating to funds collected by the department of motor vehicles from the sale of certain assets; and to repeal subdivision 4 of section 94 of the transporta- tion law relating to certain fees collected by the commissioner of transportation (Part UU); to amend the state finance law, in relation to the funding of the capital and operating costs of the metropolitan transportation authority New York city subway action plan; and provid- ing for the repeal of certain provisions upon expiration thereof (Part VV); to utilize reserves in the mortgage insurance fund for various housing purposes; and to repeal certain provisions of part R of chap- ter 56 of the laws of 2017 relating to reserves in the mortgage insur- ance fund for various housing purposes, relating thereto (Part WW); to amend the judiciary law, in relation to the number of supreme court justices in certain judicial districts (Part XX); to amend the social services law, in relation to increasing the standards of monthly need for aged, blind and disabled persons living in the community (Part YY); to amend the social services law, in relation to a rental subsidy for public assistance recipients living with HIV/AIDS (Part ZZ); to amend subpart H of part C of chapter 20 of the laws of 2015, appropri- ating money for certain municipal corporations and school districts, S. 7509--C 4 A. 9509--C in relation to funding to local government entities from the urban development corporation (Part AAA); to provide for the administration of certain funds and accounts related to the 2018-19 budget and authorizing certain payments and transfers; to amend the state finance law, in relation to the school tax relief fund and to payments, trans- fers and deposits; to amend chapter 174 of the laws of 1968 constitut- ing 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 dedicated highway and bridge trust fund, in relation to the issuance of bonds; to amend the public authorities law, in relation to the issuance 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 environ- mental 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 facilities; to amend chapter 81 of the laws of 2002, relating to providing for the adminis- tration of certain funds and accounts related to the 2002-2003 budget, in relation to increasing the aggregate amount of bonds to be issued by the New York state urban development corporation; to amend chapter 59 of the laws of 2004, authorizing the New York state urban develop- ment corporation and the dormitory authority of the state of New York to issue bonds or notes, in relation to increasing certain bonds; 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 dormitories 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 improve- ment notes; 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 the state finance law and the public authorities law, in relation to funding certain capital projects and the issuance of bonds; to amend chapter 59 of the laws of 2017 relating to providing for the administration of certain funds and accounts related to the 2017-18 budget and authorizing certain payments and transfers, in relation to the effectiveness ther- eof; to amend chapter 63 of the laws of 2005, relating to the composi- tion and responsibilities of the New York state higher education capi- tal matching grant board, in relation to increasing the amount of authorized matching capital grants; to amend the public authorities S. 7509--C 5 A. 9509--C law, in relation to increasing the amount of bonds authorized to be issued; to amend the facilities development corporation act, in relation to authorizing the issuance of bonds in relation to grants made to voluntary agencies; and providing for the repeal of certain provisions upon expiration thereof (Part BBB); to amend the education law, in relation to contracts for excellence and the apportionment of public moneys; to amend the education law, in relation to the report- ing of teacher diversity; to amend the education law, in relation to a statement of the total funding allocation; to repeal section 2590-r-1 of such law relating thereto; and providing for the repeal of certain provisions upon expiration thereof; to amend the education law, in relation to supplemental public excess cost aid; to amend the educa- tion law, in relation to defining consumer price index; and to amend the education law, in relation to total foundation aid; to amend the education law, in relation to building aid; to amend section 11 of part YYY of chapter 59 of the laws of 2017, amending the education law relating to contracts for excellence and the apportionment of public moneys, in relation to the recovery of funds arising from a late final cost report; to amend the education law, in relation to full day kindergarten aid; to amend the education law, in relation to academic enhancement aid; to amend the education law, in relation to high tax aid; to amend the education law, in relation to universal pre-kinder- garten aid; to amend the education law, in relation to the statewide universal full-day pre-kindergarten program; 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 disabili- ties; to amend chapter 756 of the laws of 1992, relating to funding a program for work force education conducted by the consortium for work- er education in New York city, in relation to reimbursements for the 2018-2019 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 the education law, in relation to employment preparation education programs; to amend chap- ter 82 of the laws of 1995, amending the education law and certain other laws relating to state aid to school districts and the appropri- ation of funds for the support of government, 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 the effectiveness thereof; to amend chapter 147 of the laws of 2001, amending the education law relating to conditional appointment of school district, charter school or BOCES employees, in relation to the effectiveness thereof; to amend chapter 169 of the laws of 1994, relating to certain provisions related to the 1994-95 state oper- ations, aid to localities, capital projects and debt service budgets, in relation to the expiration of certain provisions; 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 there- of; to amend chapter 101 of the laws of 2003, amending the education law relating to implementation of the No Child Left Behind Act of S. 7509--C 6 A. 9509--C 2001, in relation to the effectiveness thereof; to amend chapter 56 of the laws of 2014, amending the education law relating to providing that standardized test scores shall not be included on a student's permanent record, in relation to the expiration of certain provisions; 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; relating to school bus driver training; relat- ing 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 the support of public libraries; to amend chapter 121 of the laws of 1996 relating to authorizing the Roosevelt union free school district to finance deficits by the issu- ance of serial bonds, in relation to certain apportionments; and to amend the education law, in relation to transportation aid (Part CCC); to amend chapter 85 of the laws of 2017, relating to creating the Lake Ontario-St. Lawrence Seaway flood recovery and International Joint Commission Plan 2014 mitigation grant program, in relation to utiliz- ing reserves in the mortgage insurance fund for various housing purposes (Part DDD); relating to an online application system for taxpayers to submit claims for reimbursements of certain payments (Part EEE); to amend the state finance law, in relation to establish- ing the health care transformation fund (Subpart A); and to amend the public health law, in relation to authorizing the commissioner of health to redeploy excess reserves of certain not-for-profit managed care organizations; and providing for the repeal of such provisions upon expiration thereof (Subpart B) (Part FFF); to amend the legisla- tive law, in relation to extending the expiration of payments to members of the assembly serving in a special capacity; and to amend chapter 141 of the laws of 1994, amending the legislative law and the state finance law relating to the operation and administration of the legislature, in relation to extending such provisions (Part GGG); establishing a compensation committee to determine the appropriate salaries for members of the legislature and certain other state offi- cials; and providing for the repeal of such provisions upon the expi- ration thereof (Part HHH); to amend chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to extending the provisions thereof (Part III); establishing the "Democracy Protection Act"; and to amend the election law, in relation to the disclosure of the identities of political committees, persons, organizations, or agents making certain expendi- tures for political communications (Part JJJ); in relation to estab- lishing the New York City Rikers Island Jail Complex Replacement act; and providing for the repeal of such provisions upon expiration there- of (Part KKK); in relation to establishing the "New York city housing authority modernization investment act"; and providing for the repeal of such provisions upon expiration thereof (Part LLL); to enact the New York Penn Station redevelopment act (Part MMM); to amend the tax law, in relation to transportation services; to amend the public authorities law, in relation to establishing the New York city trans- portation assistance fund and the supplemental revenue transparency program; to amend the vehicle and traffic law, in relation to the installation of mobile bus lane photo devices on buses operating on certain rapid transit routes in the borough of Manhattan and the S. 7509--C 7 A. 9509--C disposition of revenue from fines and penalties collected from the use of such stationary bus lane photo devices; to establish the metropol- itan transportation sustainability advisory workgroup; and providing for the repeal of certain provisions upon expiration thereof (Part NNN); to amend chapter 261 of the laws of 1988, amending the state finance law and other laws relating to the New York state infrastruc- ture trust fund, in relation to the minority and women-owned business enterprise program (Part OOO); establishing the "New York city housing authority emergency management act"; and to amend the public housing law, in relation to the development and execution of a plan to remedi- ate conditions affecting the health and safety of tenants of the New York city housing authority (Part PPP); in relation to establishing the "New York city BQE Design-Build act", and providing for the repeal of such provisions upon expiration thereof (Part QQQ); to amend the civil service law, the general municipal law and the state finance law, in relation to union dues and the duty of fair representation (Part RRR); to amend the education law, in relation to substantial equivalence for nonpublic elementary and secondary schools (Part SSS); intentionally omitted (Part TTT); and to amend the public health law, in relation to the health care facility transformation program (Part UUU) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year. Each component is wholly contained within a Part identified as Parts A through UUU. 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 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 S. 7509--C 8 A. 9509--C FURTHER, THAT EFFECTIVE WITH EXEMPTION APPLICATIONS FOR FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI- BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX YEAR, THEN IN ORDER FOR THE APPLICATION TO BE CONSIDERED COMPLETE, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPARTMENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPART- MENT, AND SHALL BE SUBJECT TO THE SECRECY PROVISIONS OF THE TAX LAW TO THE SAME EXTENT THAT A PERSONAL INCOME TAX RETURN WOULD BE. THE DEPART- MENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAILABLE FOR THE FILING OF SUCH STATEMENTS. THE LOCAL ASSESSOR SHALL UPON THE REQUEST OF A TAXPAYER ASSIST SUCH TAXPAYER IN THE FILING OF THE STATEMENT WITH THE DEPARTMENT. § 2. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by chapter 451 of the laws of 2015, is amended to read as follows: (iv) (A) Effective with applications for the enhanced exemption on final assessment rolls to be completed in two thousand [three] NINETEEN, the application form shall indicate that [the] ALL owners of the proper- ty and any owners' spouses residing on the premises [may authorize the assessor to] MUST have their income eligibility verified annually [ther- eafter] by the [state] department [of taxation and finance, in lieu of furnishing copies of the applicable income tax return or returns with the application. If the owners of the property and any owners' spouses residing on the premises elect to participate in this program, which shall be known as the STAR income verification program, they] AND must furnish their taxpayer identification numbers in order to facilitate matching with records of the department. [Thereafter, their] THE income eligibility OF SUCH PERSONS shall be verified annually by the department, and the assessor shall not request income documentation from them[, unless such department advises the assessor that they do not satisfy the applicable income eligibility requirements, or that it is unable to determine whether they satisfy those requirements]. All APPLI- CANTS FOR THE ENHANCED EXEMPTION AND ALL assessing units shall be required to participate in this program, WHICH SHALL BE KNOWN AS THE STAR INCOME VERIFICATION PROGRAM. (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS- SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS THAT THE 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 S. 7509--C 9 A. 9509--C ACCORDINGLY. SUCH A DIRECTIVE SHALL BE BINDING UPON THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL, AND SHALL BE IMPLEMENTED BY SUCH PERSON WITHOUT THE NEED FOR FURTHER DOCUMENTATION OR APPROVAL. (C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NEITHER AN ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER AN OBJECTION TO THE REPLACEMENT OR REMOVAL OR DENIAL OF AN EXEMPTION PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE REVIEWED IN A PROCEEDING TO REVIEW AN ASSESSMENT PURSUANT TO TITLE ONE OR ONE-A OF ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION MAY ONLY BE CHALLENGED BEFORE THE DEPARTMENT. IF A TAXPAYER IS DISSATISFIED WITH THE DEPART- MENT'S FINAL DETERMINATION, THE TAXPAYER MAY APPEAL THAT DETERMINATION TO THE STATE BOARD OF REAL PROPERTY TAX SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE ISSUANCE OF THE DEPARTMENT'S FINAL DETERMI- NATION. IF DISSATISFIED WITH THE STATE BOARD'S DETERMINATION, THE TAXPAYER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO ARTICLE SEVENTY- EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE TAXPAYER SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A COURT ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM OF LEGAL RECOURSE AGAINST THE COMMISSIONER, THE DEPARTMENT, THE STATE BOARD OF REAL PROPERTY TAX SERVICES, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION. § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision 4 of section 425 of the real property tax law are REPEALED. § 4. Paragraphs (b) and (c) of subdivision 5 of section 425 of the real property tax law are REPEALED. § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper- ty tax law, as amended by section 5 of part E of chapter 83 of the laws of 2002 and subparagraph (i) as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (d) Third party notice. (i) A senior citizen eligible for the enhanced exemption may request that a notice be sent to an adult third party. Such request shall be made on a form prescribed by the commissioner and shall be submitted to the assessor of the assessing unit in which the eligible taxpayer resides no later than sixty days before the first taxable status date to which it is to apply. Such form shall provide a section whereby the designated third party shall consent to such desig- nation. Such request shall be effective upon receipt by the assessor. The assessor shall maintain a list of all eligible property owners who have requested notices pursuant to this paragraph AND SHALL FURNISH A COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST. (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." S. 7509--C 10 A. 9509--C (iii) In the case of a senior citizen who has elected to participate in the STAR income verification program, a] A notice shall be sent to the designated third party whenever the assessor OR DEPARTMENT sends a notice to the senior citizen regarding the possible removal of the enhanced STAR exemption. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL BECAUSE THE COMMISSIONER HAS DETERMINED THAT THE INCOME ELIGIBILITY REQUIREMENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY THE DEPARTMENT. WHEN THE EXEMPTION IS SUBJECT TO REMOVAL BECAUSE THE ASSESSOR HAS DETERMINED THAT ANY OTHER ELIGIBILITY REQUIRE- MENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY THE ASSESSOR. Such notice shall read substantially as follows: "On behalf of (identify senior citizen or citizens), you are advised that his, her, or their enhanced STAR exemption is at risk of being removed. You are encouraged to make sure that he, she or they are aware of that fact, and to offer assistance if needed, although you are under no legal obligation to do so. Your cooperation and assistance are great- ly appreciated." [(iv)] (III) The obligation to mail such notices shall cease if the eligible taxpayer cancels the request or ceases to qualify for the enhanced STAR exemption. § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper- ty tax law is REPEALED. § 7. Subdivision 9-b of section 425 of the real property tax law, as added by section 8 of part E of chapter 83 of the laws of 2002 and para- graph (b) as amended by chapter 742 of the laws of 2005 and further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 9-b. Duration of exemption; enhanced exemption. (a) [In the case of persons who have elected to participate in the STAR income verification program, the] THE enhanced exemption, once granted, shall remain in effect until discontinued in the manner provided in this section. (b) [In the case of persons who have not elected to participate in the STAR income verification program, the enhanced exemption shall apply for a term of one year. To continue receiving such enhanced exemption, a renewal application must be filed annually with the assessor on or before the applicable taxable status date on a form prescribed by the commissioner. Provided, however, that if a renewal application is not so filed, the assessor shall discontinue the enhanced exemption but shall grant the basic exemption, subject to the provisions of subdivision eleven of this section. (c) Whether or not the recipients of an enhanced STAR exemption have elected to participate in the STAR income verification program, the] THE assessor [may review their] SHALL REVIEW THE continued compliance OF 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 S. 7509--C 11 A. 9509--C (C) OR (D) OF SUBDIVISION FOURTEEN OF THIS SECTION, AND THE DETERMI- NATION IS MADE AFTER THE SCHOOL DISTRICT TAXES FOR THAT SCHOOL YEAR HAVE BEEN LEVIED, THE PROVISIONS OF THIS SUBDIVISION SHALL BE APPLICABLE. (A) IF THE DETERMINATION RESTORES OR INCREASES THE TAXPAYER'S EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO REMIT THE EXCESS DIRECTLY TO THE PROPERTY OWNER UPON RECEIVING CONFIRMATION THAT THE TAXPAYER'S ORIGINAL SCHOOL TAX BILL HAS BEEN PAID IN FULL. THE AMOUNTS PAYABLE BY THE COMMISSIONER UNDER THIS PARAGRAPH SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVI- SION FOURTEEN OF THIS SECTION. WHEN THE COMMISSIONER IMPLEMENTS THE DETERMINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO REFUND SHALL BE ISSUED BY THE SCHOOL AUTHORITIES TO THE PROPERTY OWNER OR HIS OR HER AGENT FOR THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID FOR THAT SCHOOL YEAR. (B) IF THE DETERMINATION REMOVES, DENIES OR DECREASES THE TAXPAYER'S EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO COLLECT THE SHORTFALL DIRECTLY FROM THE OWNERS OF THE PROPERTY, TOGETHER WITH INTEREST, BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION, LEVY, AND LIEN OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO OF THE TAX LAW, AND ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN THE PROVISIONS OF SUCH ARTICLE. WHEN THE COMMISSIONER IMPLEMENTS THE DETER- MINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT SCHOOL YEAR. § 9. Section 171-o of the tax law is REPEALED. § 10. Subparagraph (B) of paragraph 1 of subsection (eee) of section 606 of the tax law, as amended by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (B) "Affiliated income" shall mean for purposes of the basic STAR credit, the combined income of all of the owners of the parcel who resided primarily thereon as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date, and for purposes of the enhanced STAR credit, the combined income of all of the owners of the parcel as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date; provided that for both purposes the income to be so combined shall be the "adjusted gross income" for the taxable year as reported for federal income tax purposes, or that would be reported as adjusted gross income if a federal income tax return were required to be filed, reduced by distributions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retirement annuity. FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI- BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR MORE INDIVIDUALS WHO DID NOT FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE APPLICABLE INCOME TAX YEAR, THEN IN ORDER TO BE ELIGIBLE FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPART- MENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE AMOUNT OR AMOUNTS THEREOF, THAT WOULD HAVE BEEN REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE S. 7509--C 12 A. 9509--C 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. THE LOCAL ASSESSOR SHALL UPON THE REQUEST OF A TAXPAYER ASSIST SUCH TAXPAYER IN THE FILING OF THE STATEMENT WITH THE DEPARTMENT. 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 deter- mination 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 property, rather than as of December thirty-first of the taxable year. § 11. No application for an enhanced exemption on a final assessment roll to be completed in 2019 may be approved if the applicants have not enrolled in the STAR income verification program established by subpara- graph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law as amended by section two of this act, regardless of when the application was filed. The assessor shall notify such appli- cants that participation in that program has become mandatory for all applicants and that their applications cannot be approved unless they enroll therein. The commissioner of taxation and finance shall provide a form for assessors to use, at their option, when making this notifica- tion. § 12. This act shall take effect immediately. PART C Intentionally Omitted PART D Intentionally Omitted PART E Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED. § 1-a. Section 3-d of the general municipal law is REPEALED. § 1-b. Section 2023-b of the education law is REPEALED. § 2. The general municipal law is amended by adding a new section 3-d to read as follows: § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE LOCAL GOVERNMENT UNIT DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER- RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR RESOLUTION WAS SUBSE- QUENTLY REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION- ER OF TAXATION AND FINANCE. 2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF SUCH A CERTIF- ICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE S. 7509--C 13 A. 9509--C PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A DULY ADOPTED LOCAL LAW OR RESOLUTION. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY LOCAL GOVERNMENT UNIT SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE TIME AND IN THE MANNER AS HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION. § 3. The education law is amended by adding a new section 2023-b to read as follows: § 2023-B. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE ADOPTION OF THE BUDGET OF AN ELIGIBLE SCHOOL DISTRICT, THE CHIEF EXECUTIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL CERTIFY TO THE STATE COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMIS- SIONER THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMMISSIONER. 2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF THE SCHOOL DISTRICT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART, EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR- IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS. 3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN- TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS- SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI- VISION. § 4. Subdivision 3 of section 97-rrr of the state finance law, as amended by section 1 of part F of chapter 59 of the laws of 2015, is amended to read as follows: 3. The monies in such fund shall be appropriated for school property tax exemptions granted pursuant to the real property tax law and payable pursuant to section thirty-six hundred nine-e of the education law[, and for payments to the city of New York pursuant to section fifty-four-f of this chapter]. § 5. Section 925-b of the real property tax law, as amended by chapter 161 of the laws of 2006, is amended to read as follows: § 925-b. Extension; certain persons sixty-five years of age or over. Notwithstanding any contrary provision of this chapter, or any general, special or local law, code or charter, the governing body of a municipal corporation other than a county may, by resolution adopted prior to the levy of any taxes on real property located within such municipal corpo- ration, authorize an extension of no more than five business days for the payment of taxes without interest or penalty to any resident of such municipal corporation who has received an exemption pursuant to subdivi- sion four of section four hundred twenty-five or four hundred sixty-sev- en of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located within such municipal corporation. If such an extension is granted, and any taxes are not paid by the final date so provided, those taxes shall S. 7509--C 14 A. 9509--C be subject to the same interest and penalties that would have applied if no extension had been granted. § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop- erty tax law is relettered paragraph (f) and two new paragraphs (d) and (e) are added to read as follows: (D) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY TO ESTABLISH A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH RESPECT TO THE TAXES SO COLLECTED. (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE NOT COLLECTED BY A COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE IS PROVIDED BY THE COUNTY, THEN BEFORE THE CITY, TOWN, VILLAGE OR SCHOOL DISTRICT MAY IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS SECTION, IT MUST OBTAIN WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES. § 7. Subparagraph (B) of paragraph 7 of subsection (eee) of section 606 of the tax law, as amended by section 1 of part G of chapter 59 of the laws of 2017, is amended to read as follows: (B) Notwithstanding any provision of law to the contrary, the names and addresses of individuals who have applied for or are receiving the credit authorized by this subsection may be disclosed to assessors [and], county directors of real property tax services, AND MUNICIPAL TAX COLLECTING OFFICERS. In addition, where an agreement is in place between the commissioner and the head of the tax department of another state, such information may be disclosed to such official or his or her desig- nees. Such information shall be considered confidential and shall not be subject to further disclosure pursuant to the freedom of information law or otherwise. § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop- erty tax law, as added by section 1 of part B of chapter 389 of the laws of 1997 and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (g) Computation and certification by commissioner. It shall be the responsibility of the commissioner to compute the exempt amount for each assessing unit in each county in the manner provided herein, and to certify the same to the assessor of each assessing unit and to the coun- ty director of real property tax services of each county. Such certif- ication shall be made at least twenty days before the last date prescribed by law for the filing of the tentative assessment roll. PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON A PRIOR YEAR ASSESSMENT ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION PURSUANT TO CLAUSE (A) OF SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION, AND PROVIDED FURTHER, THAT UPON RECEIPT OF SUCH CERTIFICATION, THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH- ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT THAT PERSON TO MAKE THE APPROPRIATE CORRECTIONS. § 8. Paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new subparagraph (A) to read as follows: (A) A MARRIED COUPLE MAY NOT RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON MORE THAN ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR, UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY A MARRIED COUPLE S. 7509--C 15 A. 9509--C RECEIVE A CREDIT PURSUANT TO THIS SUBSECTION ON ONE RESIDENCE WHILE RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE TO LEGAL SEPARATION. § 9. This act shall take effect immediately; provided, however, that sections one, one-a, one-b, two and three of this act shall take effect April 15, 2020; provided further, however, that section 3-d of the general municipal law, as added by section two of this act, shall expire and be deemed repealed on the same date and in the same manner as section 1 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided that section 2023-b of the education law, as added by section three of this act, shall expire and be deemed repealed on the same date and in the same manner as section 2 of part A of chapter 97 of the laws of 2011, expires and is deemed repealed, and provided further that the amendments to paragraph 6 of subsection (eee) of section 606 of the tax law made by section eight of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2016. REPEAL NOTE: Section 606(bbb) of the Tax Law, section 3-d of the General Municipal Law and section 2023-b of the Education Law collec- tively constituted the enabling legislation for the tax freeze credit program. By the terms of those statutes, the tax freeze credit was only applicable to taxable years 2014, 2015 and 2016. Therefore, these provisions no longer serve a purpose, except for the reporting provisions, which facilitate the administration of the tax levy limit program and are being preserved in a reenacted section 3-d of the Gener- al Municipal Law and section 2023-b of the Education Law. PART F Intentionally Omitted PART G Section 1. Section 4 of chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, is amended to read as follows: § 4. This act shall take effect on the first of January of the second calendar year commencing after this act shall have become a law and shall apply to assessment rolls with taxable status dates on or after such date; provided, however, that this act shall expire and be deemed repealed [four] EIGHT years after such effective date; and provided, further, that no assessment of local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the first calendar year after this act shall have become a law shall be less than ninety percent or more than one hundred ten percent of the assessment of the same property on the date this act shall have become a law. § 2. Subdivision 3 of section 499-kkkk of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. (A) For assessment rolls with taxable status dates in each of the three calendar years including and following the year in which this section shall take effect, the commissioner shall establish no assess- ment ceiling that is less than ninety percent or more than one hundred ten percent of the assessment of such local public utility mass real S. 7509--C 16 A. 9509--C property appearing on the municipal assessment roll with a taxable status date occurring in the second preceding calendar year from when this section shall take effect, except that the commissioner may estab- lish assessment ceilings below the ninety percent level or above the one hundred ten percent level to take into account any change in level of assessment and/or to take into account any additions or retirements to public utility mass real property or litigation affecting the value or taxable status of the local public utility mass real property initiated prior to the effective date of this section. (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN THE YEARS TWO THOUSAND EIGHTEEN, TWO THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING THAT IS BELOW THE LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL OF ASSESSMENT AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING THE VALUE OR TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI- ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND EIGHTEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN SEVENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIRTEEN. (II) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR MORE THAN ONE HUNDRED FIFTY PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIR- TEEN. (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND TWENTY, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN TWENTY-FIVE PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE ASSESSMENT OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI- PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIRTEEN. § 3. This act shall take effect immediately, provided, however, that the amendments to subdivision three of section 499-kkkk of the real property tax law made by section two of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART H Section 1. Subsection (c) of section 683 of the tax law is amended by adding a new paragraph 12 to read as follows: (12) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED RETURN IS FILED. § 2. Subsection (c) of section 1083 of the tax law is amended by adding a new paragraph 12 to read as follows: S. 7509--C 17 A. 9509--C (12) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED RETURN IS FILED. § 3. Subdivision (c) of section 11-1783 of the administrative code of the city of New York is amended by adding a new paragraph 9 to read as follows: (9) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVI- SION, OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF THE AMENDED RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED RETURN IS FILED. § 4. This act shall take effect immediately and shall apply to amended returns filed on or after the effective date of this act. PART I Section 1. Paragraph 1 of subdivision (d) of section 658 of the tax law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: (1) The commissioner of taxation and finance may prescribe regulations and instructions requiring returns of information to be made and filed on or before February twenty-eighth of each year as to the payment or crediting in any calendar year of amounts of six hundred dollars or more to any taxpayer under this article. Such returns may be required of any person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this state, or of any municipal corporation or political subdivision of this state, having the control, receipt, custody, disposal or payment of interest, rents, salaries, wages, premiums, annuities, compensations, remunera- tions, emoluments or other fixed or determinable gains, profits or income, except interest coupons payable to bearer. Information required to be furnished pursuant to paragraph four of subsection (a) of section six hundred seventy-four on a quarterly combined withholding and wage reporting return covering [the last] EACH calendar quarter of each year and relating to tax withheld on wages paid by an employer to an employee for [the full] EACH calendar [year] QUARTER, shall constitute the return of information required to be made under this section with respect to such wages. § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section 674 of the tax law, as amended by section 1 of subpart E of part V-1 of chapter 57 of the laws of 2009, is amended to read as follows: (A) All employers described in paragraph one of subsection (a) of section six hundred seventy-one of this part, including those whose wages paid are not sufficient to require the withholding of tax from the wages of any of their employees, all employers required to provide the wage reporting information for the employees described in subdivision one of section one hundred seventy-one-a of this chapter, and all employers liable for unemployment insurance contributions or for payments in lieu of such contributions pursuant to article eighteen of S. 7509--C 18 A. 9509--C the labor law, shall file a quarterly combined withholding, wage report- ing and unemployment insurance return detailing the preceding calendar quarter's withholding tax transactions, such quarter's wage reporting information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such quarter's unemployment insurance contributions, and such other related information as the commissioner of taxation and finance or the commis- sioner of labor, as applicable, may prescribe. [In addition, the return covering the last calendar quarter of each year shall also include with- holding reconciliation information for such calendar year.] Such returns shall be filed no later than the last day of the month following the last day of each calendar quarter. § 3. Paragraph 3 of subsection (v) of section 685 of the tax law, as amended by chapter 477 of the laws of 1998, is amended to read as follows: (3) Failure to provide complete and correct employee withholding reconciliation information. In the case of a failure by an employer to provide complete and correct [annual] QUARTERLY withholding information relating to individual employees on a quarterly combined withholding, wage reporting and unemployment insurance return covering [the last] EACH calendar quarter of a year, such employer shall, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, pay a penalty equal to the product of fifty dollars multiplied by the number of employees for whom such information is incomplete or incorrect; provided, however, that if the number of such employees cannot be determined from the quarterly combined withholding, wage reporting and unemployment insurance return, the commissioner may utilize any information in the commissioner's possession in making such determination. The total amount of the penalty imposed pursuant to this paragraph on an employer for any such failure for [the last] EACH calen- dar quarter of a year shall not exceed ten thousand dollars. § 4. This act shall take effect immediately and shall apply to calen- dar quarters beginning on or after January 1, 2019. PART J Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as amended by section 1 of part DD of chapter 407 of the laws of 1999, is amended to read as follows: (i) The receipts from every sale, OTHER THAN SALES FOR RESALE, of beer, wine or other alcoholic beverages or any other drink of any nature, or from every sale, OTHER THAN SALES FOR RESALE, of food and drink of any nature or of food alone, when sold in or by restaurants, taverns or other establishments in this state, or by caterers, including in the amount of such receipts any cover, minimum, entertainment or other charge made to patrons or customers (except those receipts taxed pursuant to subdivision (f) of this section): (1) in all instances where the sale is for consumption on the premises where sold; (2) in those instances where the vendor or any person whose services are arranged for by the vendor, after the delivery of the food or drink by or on behalf of the vendor for consumption off the premises of the vendor, serves or assists in serving, cooks, heats or provides other services with respect to the food or drink; and (3) in those instances where the sale is made through a vending machine that is activated by use of coin, currency, credit card or debit S. 7509--C 19 A. 9509--C card (except the sale of drinks in a heated state made through such a vending machine) or is for consumption off the premises of the vendor, except where food (other than sandwiches) or drink or both are (A) sold in an unheated state and, (B) are of a type commonly sold for consump- tion off the premises and in the same form and condition, quantities and packaging, in establishments which are food stores other than those principally engaged in selling foods prepared and ready to be eaten. § 2. This act shall take effect June 1, 2018 and shall apply to sales made on and after such date. PART K Section 1. The tax law is amended by adding a new section 171-z to read as follows: § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING UNCLAIMED FUNDS. 1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED TO RELEASE TO THE COMPTROLLER INFORMATION REGARDING FIXED AND FINAL UNWARRANTED DEBTS OF TAXPAYERS FOR PURPOSES OF COLLECTING UNCLAIMED FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED DEBTS OWED BY TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX, INTER- EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND A WARRANT HAS NOT BEEN FILED; AND THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO- RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY, PARTNER, MEMBER, MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI- TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE STATE. THIS SECTION SHALL NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED THE STATE FROM UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW. 2. THE COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY TAXPAYER INFORMA- TION RECEIVED UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER OR STAFF OF THE DEPARTMENT OR STAFF OF THE DEPARTMENT OF AUDIT AND CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION. § 2. This act shall take effect immediately. PART L Intentionally Omitted PART M Intentionally Omitted PART N Intentionally Omitted PART O Section 1. Subparagraph (B) of paragraph 1 of subsection (b) of section 605 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows: S. 7509--C 20 A. 9509--C (B) who [is not domiciled in this state but] maintains a permanent place of abode in this state and spends in the aggregate more than one hundred eighty-three days of the taxable year in this state, WHETHER OR NOT DOMICILED IN THIS STATE FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law, as amended by chapter 225 of the laws of 1977, is amended to read as follows: (2) who [is not domiciled in such city but] maintains a permanent place of abode in such city and spends in the aggregate more than one hundred eighty-three days of the taxable year in such city, WHETHER OR NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 3. Subparagraph (B) of paragraph 1 of subdivision (b) of section 11-1705 of the administrative code of the city of New York, as amended by chapter 333 of the laws of 1987, is amended to read as follows: (B) who [is not domiciled in this city but] maintains a permanent place of abode in this city and spends in the aggregate more than one hundred eighty-three days of the taxable year in this city, WHETHER OR NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless such individual is in active service in the armed forces of the United States. § 4. This act shall take effect immediately and shall apply to taxable years commencing on or after such date. PART P Section 1. Paragraph 1 of subsection (c-1) of section 606 of the tax law, as amended by section 1 of part L-1 of chapter 109 of the laws of 2006, is amended to read as follows: (1) A resident taxpayer shall be allowed a credit as provided herein equal to the greater of one hundred dollars times the number of qualify- ing children of the taxpayer or the applicable percentage of the child tax credit allowed the taxpayer under section twenty-four of the inter- nal revenue code for the same taxable year for each qualifying child. Provided, however, in the case of a taxpayer whose federal adjusted gross income exceeds the applicable threshold amount set forth by section 24(b)(2) of the Internal Revenue Code, the credit shall only be equal to the applicable percentage of the child tax credit allowed the taxpayer under section 24 of the Internal Revenue Code for each qualify- ing child. For the purposes of this subsection, a qualifying child shall be a child who meets the definition of qualified child under section 24(c) of the internal revenue code and is at least four years of age. The applicable percentage shall be thirty-three percent. FOR PURPOSES OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL REVENUE CODE SHALL BE A REFERENCE TO SUCH SECTION AS IT EXISTED IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 2. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2018. PART Q S. 7509--C 21 A. 9509--C Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B of the tax law, as amended by section 1 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax law, as amended by section 2 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any S. 7509--C 22 A. 9509--C week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the tax law, as amended by section 3 of part I of chapter 60 of the laws of 2016, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [nineteen] TWENTY-ONE, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than one year and for not less than thirty-five hours each week, a qualified veteran with- in the state. The taxpayer may claim the credit in the year in which the qualified veteran completes one year of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who was released from active duty by general or honorable discharge after September eleventh, two thousand one; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [eighteen] TWENTY; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. § 4. This act shall take effect immediately. PART R Section 1. Subdivision (c) of section 25-a of the labor law, as amended by section 1 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (c) A qualified employer shall be entitled to a tax credit equal to (1) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (2) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (3) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI- S. 7509--C 23 A. 9509--C SION by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full time. The tax credits shall be claimed by the qualified employer as specified in subdivision thirty-six of section two hundred ten-B and subsection (tt) of section six hundred six of the tax law. § 2. Subdivisions (d), (e) and (f) of section 25-a of the labor law, subdivisions (d) and (e) as amended by section 1 of subpart A of part N of chapter 59 of the laws of 2017 and subdivision (f) as amended by section 1 of part AA of chapter 56 of the laws of 2015, are amended to read as follows: (d) To participate in the program established under this section, an employer must submit an application (in a form prescribed by the commis- sioner) to the commissioner after January first, two thousand twelve but no later than November thirtieth, two thousand twelve for program one, after January first, two thousand fourteen but no later than November thirtieth, two thousand fourteen for program two, after January first, two thousand fifteen but no later than November thirtieth, two thousand fifteen for program three, after January first, two thousand sixteen but no later than November thirtieth, two thousand sixteen for program four, after January first, two thousand seventeen but no later than November thirtieth, two thousand seventeen for program five, after January first, two thousand eighteen but no later than November thirtieth, two thousand eighteen for program six, after January first, two thousand nineteen but no later than November thirtieth, two thousand nineteen for program seven, after January first, two thousand twenty but no later than Novem- ber thirtieth, two thousand twenty for program eight, after January first, two thousand twenty-one but no later than November thirtieth, two thousand twenty-one for program nine, and after January first, two thou- sand twenty-two but no later than November thirtieth, two thousand twen- ty-two for program ten. The qualified employees must start their employ- ment on or after January first, two thousand twelve but no later than December thirty-first, two thousand twelve for program one, on or after January first, two thousand fourteen but no later than December thirty- first, two thousand fourteen for program two, on or after January first, two thousand fifteen but no later than December thirty-first, two thou- sand fifteen for program three, on or after January first, two thousand sixteen but no later than December thirty-first, two thousand sixteen for program four, on or after January first, two thousand seventeen but no later than December thirty-first, two thousand seventeen for program five, on or after January first, two thousand eighteen but no later than December thirty-first, two thousand eighteen for program six, on or after January first, two thousand nineteen but no later than December thirty-first, two thousand nineteen for program seven, on or after Janu- ary first, two thousand twenty but no later than December thirty-first, two thousand twenty for program eight, on or after January first, two thousand twenty-one but no later than December thirty-first, two thou- sand twenty-one for program nine, and on or after January first, two thousand twenty-two but no later than December thirty-first, two thou- sand twenty-two for program ten. [The commissioner shall establish guidelines and criteria that specify requirements for employers to participate in the program including criteria for certifying qualified S. 7509--C 24 A. 9509--C employees, ensuring that the process established will minimize any undue delay in issuing the certificate of eligibility. Any regulations that the commissioner determines are necessary may be adopted on an emergency basis notwithstanding anything to the contrary in section two hundred two of the state administrative procedure act. Such requirements may include the types of industries that the employers are engaged in. The commissioner may give preference to employers that are engaged in demand occupations or industries, or in regional growth sectors, including but not limited to those identified by the regional economic development councils, such as clean energy, healthcare, advanced manufacturing and conservation. In addition, the commissioner shall give preference to employers who offer advancement and employee benefit packages to the qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF TAXA- TION AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS OF EMPLOYERS THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE. (e) If, after reviewing the application submitted by an employer, the commissioner determines that such employer is eligible to participate in the program established under this section, the commissioner shall issue the employer a PRELIMINARY certificate of eligibility that establishes the employer as a qualified employer. The PRELIMINARY certificate of eligibility shall specify the maximum amount of tax credit that the employer [will] MAY be allowed to claim and the program year under which it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT THE EMPLOYER IS ALLOWED TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C) OF THIS SECTION. (f) The commissioner shall annually publish a report. Such report must contain the names and addresses of any employer issued a PRELIMINARY certificate of eligibility under this section, [and] the [maximum] amount of New York youth works tax credit allowed to the QUALIFIED employer as specified on [such] AN ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT AND ANY OTHER INFORMATION AS DETERMINED BY THE COMMISSIONER. § 3. Section 25-a of the labor law is amended by adding three new subdivisions (e-1), (e-2) and (e-3) to read as follows: (E-1)(1) TO RECEIVE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR BEFORE JANUARY THIRTY- FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY THE COMMISSIONER. THE REPORT MUST DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE COMMIS- SIONER SHALL ISSUE AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT. SUCH CERTIFICATE SHALL INCLUDE, IN ADDITION TO ANY OTHER INFORMATION THE COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION: (I) THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE QUALIFIED EMPLOYER; (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD; (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED EMPLOYER IS ENTITLED FOR THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL S. 7509--C 25 A. 9509--C FINAL CERTIFICATE IS ISSUED, WHICH ACTUAL AMOUNT CANNOT EXCEED THE AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS THAN SUCH AMOUNT; AND (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT. (E-2) IN DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE, THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL YEAR OF CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF SUBDIVISION (C) OF THIS SECTION. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF- ICATE OF TAX CREDIT IS ISSUED. (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD- ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM- INARY CERTIFICATE OF ELIGIBILITY AND ANNUAL FINAL CERTIFICATE OF TAX CREDIT. SUCH REQUIREMENTS MAY INCLUDE THE TYPES OF INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN. THE COMMISSIONER MAY GIVE PREFERENCE TO EMPLOYERS THAT ARE ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN REGIONAL GROWTH SECTORS, INCLUDING BUT NOT LIMITED TO THOSE IDENTIFIED BY THE REGIONAL ECONOMIC DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY, HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION. IN ADDITION, THE COMMISSIONER SHALL GIVE PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS. § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section 2 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) [one thou- sand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional S. 7509--C 26 A. 9509--C [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA- GRAPH by the qualified employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employ- ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the quali- fied employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax law, as amended by section four of this act, is amended to read as follows: (a) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(i) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, (ii) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (iii) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the condi- tions set forth in subparagraphs (i) and (ii) of this paragraph by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. For purposes of this subdivision, the term "qualified employee" shall have the same meaning as set forth in subdivision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (i) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (ii) of this paragraph shall be allowed in the taxable year in which the additional six month S. 7509--C 27 A. 9509--C period ends, and the portion of the credit described in subparagraph (iii) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-FIVE-A OF THE LABOR LAW. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM- PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 6. Paragraph (c) of subdivision 36 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (c) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may release the names and addresses of any taxpayer claiming this credit and the amount of the credit earned by the taxpayer. Provided, however, if a taxpayer claims this credit because it is a member of a limited liability company or a partner in a partnership, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section 3 of part AA of chapter 56 of the laws of 2015, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed a credit against the tax imposed by this article equal to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months for each qualified employee the employer employs in a full-time job or [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the quali- fied employer in a full-time job or [five] SEVEN hundred FIFTY dollars for each qualified employee who is employed for at least an additional six CONSECUTIVE months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional [one thousand] FIFTEEN HUNDRED dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a full-time job or [five] SEVEN hundred S. 7509--C 28 A. 9509--C FIFTY dollars for each qualified employee who is employed for at least an additional year after the [first year of the employee's employment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law shall be allowed its pro rata share of the credit earned by the partnership, limited liabil- ity company or S corporation. For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends. § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as amended by section seven of this act, is amended to read as follows: (1) A taxpayer that has been certified by the commissioner of labor as a qualified employer pursuant to section twenty-five-a of the labor law AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS- SIONER shall be allowed a credit against the tax imposed by this article equal to [(A) seven hundred fifty dollars per month for up to six months for each qualified employee the employer employs in a full-time job or three hundred seventy-five dollars per month for up to six months for each qualified employee the employer employs in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (B) fifteen hundred dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a full- time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional six consecutive months by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time, and (C) an additional fifteen hundred dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a full-time job or seven hundred fifty dollars for each qualified employee who is employed for at least an additional year after the completion of the time periods and satisfaction of the conditions set forth in subparagraphs A and B of this subsection by the qualified employer in a part-time job of at least twenty hours per week or ten hours per week when the qualified employee is enrolled in high school full-time] THE AMOUNT LISTED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY- FIVE-A OF THE LABOR LAW. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in an S corporation that has [been certified by] RECEIVED ITS ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM the commissioner of labor as a qualified employer pursu- ant to section twenty-five-a of the labor law shall be allowed its pro S. 7509--C 29 A. 9509--C rata share of the credit earned by the partnership, limited liability company or S corporation. [For purposes of this subsection, the term "qualified employee" shall have the same meaning as set forth in subdi- vision (b) of section twenty-five-a of the labor law. The portion of the credit described in subparagraph (A) of this paragraph shall be allowed for the taxable year in which the wages are paid to the qualified employee, the portion of the credit described in subparagraph (B) of this paragraph shall be allowed in the taxable year in which the addi- tional six month period ends, and the portion of the credit described in subparagraph (C) of this paragraph shall be allowed in the taxable year in which the additional year after the first year of employment ends.] IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY- ER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS ISSUED. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION TWENTY-FIVE-A OF THE LABOR LAW. § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law, as added by section 3 of part D of chapter 56 of the laws of 2011, is amended to read as follows: (3) The taxpayer [may] SHALL be required to attach to its tax return its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued by the commissioner of labor pursuant to section twenty-five-a of the labor law. In no event shall the taxpayer be allowed a credit greater than the amount of the credit listed on the ANNUAL FINAL certificate of [eligi- bility] TAX CREDIT. Notwithstanding any provision of this chapter to the contrary, the commissioner and the commissioner's designees may release the names and addresses of any taxpayer claiming this credit and the amount of the credit earned by the taxpayer. Provided, however, if a taxpayer claims this credit because it is a member of a limited liabil- ity company, a partner in a partnership, or a shareholder in a subchap- ter S corporation, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released. § 10. This act shall take effect immediately, provided however that (i) section one of this act shall apply to tax years beginning on or after January 1, 2018; (ii) sections four and seven of this act shall apply to tax years beginning on or after January 1, 2018 and before January 1, 2019; and (iii) sections two, three, five, six, eight, and nine of this act shall take effect January 1, 2019 and shall apply to tax years beginning on or after January 1, 2019. PART S Intentionally Omitted PART T Intentionally Omitted PART U S. 7509--C 30 A. 9509--C Intentionally Omitted PART V Intentionally Omitted PART W Section 1. Subdivision (f) of section 1115 of the tax law, as amended by chapter 205 of the laws of 1968, is amended to read as follows: (f) (1) Services rendered by a veterinarian licensed and registered as required by the education law which constitute the practice of veteri- nary medicine as defined in said law, including hospitalization for which no separate boarding charge is made, shall not be subject to tax under paragraph (3) of subdivision (c) of section eleven hundred five, but the exemption allowed by this subdivision shall not apply to other services provided by a veterinarian to pets and other animals, includ- ing, but not limited to, boarding, grooming and clipping. Articles of tangible personal property designed for use in some manner relating to domestic animals or poultry, when sold by such a veterinarian, shall not be subject to tax under subdivision (a) of section eleven hundred five or under section eleven hundred ten. However, the sale of any such arti- cles of tangible personal property to a veterinarian shall not be deemed a sale for resale within the meaning of [pargraph] PARAGRAPH (4) of subdivision (b) of section eleven hundred one and shall not be exempt from retail sales tax. (2) DRUGS OR MEDICINE SOLD TO OR USED BY A VETERINARIAN FOR USE IN RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVISION TO LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO A PERSON QUALIFYING FOR THE EXEMPTION PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY. § 2. Subdivision (a) of section 1119 of the tax law, as amended by chapter 686 of the laws of 1986 and as further amended by section 15 of part GG of chapter 63 of the laws of 2000, is amended to read as follows: (a) Subject to the conditions and limitations provided for herein, a refund or credit shall be allowed for a tax paid pursuant to subdivision (a) of section eleven hundred five or section eleven hundred ten (1) on the sale or use of tangible personal property if the purchaser or user, in the performance of a contract, later incorporates that tangible personal property into real property located outside this state, (2) on the sale or use of tangible personal property purchased in bulk, or any portion thereof, which is stored and not used by the purchaser or user within this state if that property is subsequently reshipped by such purchaser or user to a point outside this state for use outside this state, (3) on the sale to or use by a contractor or subcontractor of tangible personal property if that property is used by him solely in the performance of a pre-existing lump sum or unit price construction contract, (4) on the sale or use within this state of tangible personal property, not purchased for resale, if the use of such property in this state is restricted to fabricating such property (including incorporat- ing it into or assembling it with other tangible personal property), processing, printing or imprinting such property and such property is then shipped to a point outside this state for use outside this state, [(5) on the sale to or use by a veterinarian of drugs or medicine if S. 7509--C 31 A. 9509--C such drugs or medicine are used by such veterinarian in rendering services, which are exempt pursuant to subdivision (f) of section eleven hundred fifteen of this chapter, to livestock or poultry used in the production for sale of tangible personal property by farming or if such drugs or medicine are sold to a person qualifying for the exemption provided for in paragraph (6) of subdivision (a) of section eleven hundred fifteen of this chapter for use by such person on such livestock or poultry,] or (6) on the sale of tangible personal property purchased for use in constructing, expanding or rehabilitating industrial or commercial real property (other than property used or to be used exclu- sively by one or more registered vendors primarily engaged in the retail sale of tangible personal property) located in an area designated as an empire zone pursuant to article eighteen-B of the general municipal law, but only to the extent that such property becomes an integral component part of the real property. (For the purpose of clause (3) of the preced- ing sentence, the term "pre-existing lump sum or unit price construction contract" shall mean a contract for the construction of improvements to real property under which the amount payable to the contractor or subcontractor is fixed without regard to the costs incurred by him in the performance thereof, and which (i) was irrevocably entered into prior to the date of the enactment of this article or the enactment of a law increasing the rate of tax imposed under this article, or (ii) resulted from the acceptance by a governmental agency of a bid accompa- nied by a bond or other performance guaranty which was irrevocably submitted prior to such date.) Where the tax on the sale or use of such tangible personal property has been paid to the vendor, to qualify for such refund or credit, such tangible personal property must be incorpo- rated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was payable to the tax commission by the vendor pursuant to section eleven hundred thirty-seven. Where the tax on the sale or use of such tangible personal property was paid by the applicant for the credit or refund directly to the tax commission, to qualify for such refund or credit, such tangible personal property must be incorporated into real property as required in clause (1) above, reshipped as required in clause (2) above, used in the manner described in clauses (3), (4)[, (5)] and (6) above within three years after the date such tax was paya- ble to the tax commission by such applicant pursuant to this article. An application for a refund or credit pursuant to this section must be filed with such commission within the time provided by subdivision (a) of section eleven hundred thirty-nine. Such application shall be in such form as the tax commission may prescribe. Where an application for cred- it has been filed, the applicant may immediately take such credit on the return which is due coincident with or immediately subsequent to the time that he files his application for credit. However, the taking of the credit on the return shall be deemed to be part of the application for credit and shall be subject to the provisions in respect to applica- tions for credit in section eleven hundred thirty-nine as provided in subdivision (e) of such section. With respect to a sale or use described in clause (3) above where a pre-existing lump sum or unit price construction contract was irrevocably entered into prior to the date of the enactment of this article or the bid accompanied by the performance guaranty was irrevocably submitted to the governmental agency prior to such date, the purchaser or user shall be entitled to a refund or credit only of the amount by which the tax on such sale or use imposed under S. 7509--C 32 A. 9509--C this article plus any tax imposed under the authority of article twen- ty-nine exceeds the amount computed by applying against such sale or use the local rate of tax, if any, in effect at the time such contract was entered into or such bid was submitted. In the case of the enactment of a law increasing the rate of tax imposed by this article, the purchaser or user shall be entitled only to a refund or credit of the amount by which the increased tax on such sale or use imposed under this article plus any tax imposed under the author- ity of article twenty-nine exceeds the amount computed by applying against such sale or use the state and local rates of tax in effect at the time such contract was entered into or such bid was submitted. § 3. This act shall take effect June 1, 2018, and shall apply to sales made and uses occurring on and after such date. PART X Section 1. Subdivision 1 of section 1131 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; and every operator of a hotel. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liabil- ity company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, OR HAS SO ACTED; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of section eleven hundred one OF THIS ARTICLE shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four OF THIS PART. § 2. Subdivision (a) of section 1133 of the tax law, as amended by chapter 621 of the laws of 1967, is amended to read as follows: (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI- SION AND IN section eleven hundred thirty-seven OF THIS PART, every person required to collect any tax imposed by this article shall be personally liable for the tax imposed, collected or required to be collected under this article. Any such person shall have the same right in respect to collecting the tax from his customer or in respect to nonpayment of the tax by the customer as if the tax were a part of the purchase price of the property or service, amusement charge or rent, as the case may be, and payable at the same time; provided, however, that the tax commission shall be joined as a party in any action or proceed- ing brought to collect the tax. (2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE: (I) THE COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A MEMBER OF A LIMITED LIABILITY COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE OF THE S. 7509--C 33 A. 9509--C PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH LIMITED PARTNER OR MEMBER WAS NOT UNDER A DUTY TO ACT FOR SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR RELIEF TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS HAS ACTED ON BEHALF OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER OR WHO HAS A PAST-DUE LIABILITY, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER. (II) SUCH LIMITED PARTNER OR MEMBER MUST SUBMIT AN APPLICATION FOR RELIEF, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN ALL MATERIAL RESPECTS. PROVIDING MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH APPLICATION SHALL DISQUALIFY SUCH LIMITED PARTNER OR MEMBER FOR THE RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY AGREEMENT WITH THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING STRICT LIABILITY FOR THE TOTAL AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI- VISION. (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT- ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA- GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE COMMISSIONER, SHALL BE LIABLE FOR THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX LIABILITY OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY THAT REFLECTS SUCH LIMITED PARTNER'S OR MEMBER'S OWNERSHIP INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY, WHICHEVER IS HIGHER. SUCH ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO AND INCLUDING THE DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SECTION ELEVEN HUNDRED FORTY-TWO OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA- NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF; AND (C) ANY PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT THE TIME SUCH PAYMENT WAS MADE. PROVIDED, HOWEVER, SUCH LIMITED PARTNER OR MEMBER SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS OR MEMBERS OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO ARE ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY SHALL NOT EXCEED THE TOTAL LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY. § 3. This act shall take effect immediately. PART Y Intentionally Omitted PART Z S. 7509--C 34 A. 9509--C Section 1. Section 2 of subpart R of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the expiration of the authorization to the county of Genesee to impose an additional one percent of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding any other provision of law to the contrary, the one percent increase in sales and compensating use taxes authorized for the county of Genesee until November 30, [2019] 2020 pursuant to clause (20) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, shall be divided in the same manner and proportion as the existing three percent sales and compensating use taxes in such county are divided. § 2. Section 2 of subpart Z of part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes by the county of Monroe, is amended to read as follows: § 2. Notwithstanding the provisions of subdivisions (b) and (c) of section 1262 and section 1262-g of the tax law, net collections, as such term is defined in section 1262 of the tax law, derived from the imposi- tion of sales and compensating use taxes by the county of Monroe at the additional rate of one percent as authorized pursuant to clause (25) of subparagraph (i) of the opening paragraph of section 1210 of the tax law, as amended by section one of this act, which are in addition to the current net collections derived from the imposition of such taxes at the three percent rate authorized by the opening paragraph of section 1210 of the tax law, shall be distributed and allocated as follows: for the period of December 1, 2017 through November 30, [2019] 2020 in cash, five percent to the school districts in the area of the county outside the city of Rochester, three percent to the towns located within the county, one and one-quarter percent to the villages located within the county, and ninety and three-quarters percent to the city of Rochester and county of Monroe. The amount of the ninety and three-quarters percent to be distributed and allocated to the city of Rochester and county of Monroe shall be distributed and allocated to each so that the combined total distribution and allocation to each from the sales tax revenues pursuant to sections 1262 and 1262-g of the tax law and this section shall result in the same total amount being distributed and allocated to the city of Rochester and county of Monroe. The amount so distributed and allocated to the county shall be used for county purposes. The foregoing cash payments to the school districts shall be allocated on the basis of the enrolled public school pupils, thereof, as such term is used in subdivision (b) of section 1262 of the tax law, residing in the county of Monroe. The cash payments to the towns located within the county of Monroe shall be allocated on the basis of the ratio which the population of each town, exclusive of the population of any village or portion thereof located within a town, bears to the total population of the towns, exclusive of the population of the villages located within such towns. The cash payments to the villages located within the county shall be allocated on the basis of the ratio which the population of each village bears to the total population of the villages located within the county. The term population as used in this section shall have the same meaning as used in subdivision (b) of section 1262 of the tax law. § 3. Section 3 of subpart EE of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authorization of S. 7509--C 35 A. 9509--C the county of Onondaga to impose an additional rate of sales and compen- sating use taxes, is amended to read as follows: § 3. Notwithstanding any contrary provision of law, net collections from the additional one percent rate of sales and compensating use taxes which may be imposed by the county of Onondaga during the period commencing December 1, 2018 and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall not be subject to any revenue distribution agreement entered into under subdi- vision (c) of section 1262 of the tax law, but shall be allocated and distributed or paid, at least quarterly, as follows: (i) 1.58% to the county of Onondaga for any county purpose; (ii) 97.79% to the city of Syracuse; and (iii) .63% to the school districts in accordance with subdivision (a) of section 1262 of the tax law. § 4. Section 2 of subpart GG of part A of chapter 61 of the laws of 2017, amending the tax law relating to extending the authority of the county of Orange to impose an additional rate of sales and compensating use taxes, is amended to read as follows: § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, net collections from any additional rate of sales and compensating use taxes which may be imposed by the county of Orange during the period commencing December 1, 2017, and ending November 30, [2019] 2020, pursu- ant to the authority of section 1210 of the tax law, shall be paid to the county of Orange and shall be used by such county solely for county purposes and shall not be subject to any revenue distribution agreement entered into pursuant to the authority of subdivision (c) of section 1262 of the tax law. § 5. This act shall take effect immediately and shall be deemed to have been in full force and effect on June 29, 2017. PART AA Intentionally Omitted PART BB Intentionally Omitted PART CC Intentionally Omitted PART DD Intentionally Omitted PART EE Section 1. Subdivision 1 of section 208 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 140 of the laws of 2008, is amended to read as follows: 1. In consideration of the franchise and in accordance with its fran- chise agreement, the franchised corporation shall remit to the state, each year, no later than April fifth, a franchise fee payment. The fran- chise fee shall be calculated and equal to the lesser of paragraph (a) or (b) of this subdivision as follows: (a) adjusted net income, includ- ing all sources of audited generally accepted accounting principles net S. 7509--C 36 A. 9509--C income as of December thirty-first (i) plus the amount of depreciation and amortization for such year as set forth on the statement of cash flows (ii) less the amount received by the franchised corporation for capital expenditures and (iii) less principal payments made for the repayment of debt; or (b) operating cash which is defined as cash avail- able on December thirty-first (i) which excludes all restricted cash accounts, segregated accounts as per audited financial statements and cash on hand needed to fund the on-track pari-mutuel operations through the vault, (ii) less [forty-five] NINETY days of operating expenses pursuant to generally accepted accounting principles which shall be an average calculated by dividing the current year's annual budget by the number of days in such year and multiplying that number by [forty-five] NINETY. § 2. An advisory committee shall be established within the New York gaming commission comprised of individuals with demonstrated interest in the performance of thoroughbred and standardbred race horses to review the present structure, operations and funding of equine drug testing and research conducted pursuant to article nine of the racing, pari-mutuel wagering and breeding law. Members of the committee, who shall be appointed by the governor, shall include but not be limited to a desig- nee at the recommendation of each licensed or franchised thoroughbred and standardbred racetrack, a designee at the recommendation of each operating regional off-track betting corporation, a designee at the recommendation of each recognized horsemen's organization at licensed or franchised thoroughbred and standardbred racetracks, a designee at the recommendation of both Morrisville State College and the Cornell Univer- sity School of Veterinary Medicine, and two designees each at the recom- mendation of the speaker of the assembly and temporary president of the senate. The governor shall designate the chair from among the members who shall serve as such at the pleasure of the governor. State agencies shall cooperate with and assist the committee in the fulfillment of its duties and may render informational, non-personnel services to the committee within their respective functions as the committee may reason- ably request. Recommendations shall be delivered to the temporary presi- dent of the senate, speaker of the assembly and governor by December 1, 2018 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 3. This act shall take effect immediately. PART FF Intentionally Omitted PART GG Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information S. 7509--C 37 A. 9509--C or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [eighteen] NINETEEN; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [eighteen] NINETEEN; and (iv) no in-home simul- casting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [eighteen] NINETEEN, the amount used exclusively for purses to be awarded at races conducted by such receiving track S. 7509--C 38 A. 9509--C shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twen- ty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [eighteen] NINETEEN and on any day regardless of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [eighteen] NINETEEN. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that have entered into a written agreement with such facility's representative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [eighteen] NINETEEN. This section shall super- sede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [eighteen] NINETEEN. Every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organ- 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 S. 7509--C 39 A. 9509--C required of a franchised corporation licensed in accordance with section one thousand seven of this article: § 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [seventeen] EIGHTEEN, when a franchised corporation is conducting a race meeting within the state at Saratoga Race Course, every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. § 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: § 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2018] 2019; provided, however, that nothing contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. § 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section 8 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: § 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2018] 2019; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part OO of chapter 59 of the laws of 2017, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets be presented for payment before April first of the year following the year of their purchase, S. 7509--C 40 A. 9509--C less an amount which shall be established and retained by such fran- chised corporation of between twelve to seventeen per centum of the total deposits in pools resulting from on-track regular bets, and four- teen to twenty-one per centum of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five per centum of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six per centum of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the gaming commission. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five per centum of regular bets and four per centum of multiple bets plus twenty per centum of the breaks; for exotic wagers seven and one-half per centum plus twenty per centum of the breaks, and for super exotic bets seven and one-half per centum plus fifty per centum of the breaks. For the period June first, nineteen hundred ninety-five through September ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be three per centum and such tax on multiple wagers shall be two and one- half per centum, plus twenty per centum of the breaks. For the period September tenth, nineteen hundred ninety-nine through March thirty- first, two thousand one, such tax on all wagers shall be two and six- tenths per centum and for the period April first, two thousand one through December thirty-first, two thousand [eighteen] NINETEEN, such tax on all wagers shall be one and six-tenths per centum, plus, in each such period, twenty per centum of the breaks. Payment to the New York state thoroughbred breeding and development fund by such franchised corporation shall be one-half of one per centum of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three per centum of super exotic bets provided, however, that for the period September tenth, nineteen hundred ninety-nine through March thir- ty-first, two thousand one, such payment shall be six-tenths of one per centum of regular, multiple and exotic pools and for the period April first, two thousand one through December thirty-first, two thousand [eighteen] NINETEEN, such payment shall be seven-tenths of one per centum of such pools. § 10. This act shall take effect immediately. PART HH S. 7509--C 41 A. 9509--C Section 1. Subdivision 4 of section 97-nnnn of the state finance law is REPEALED. § 2. Subdivisions 5 and 6 of section 97-nnnn of the state finance law are renumbered subdivisions 4 and 5. § 3. This act shall take effect April 1, 2018. PART II Intentionally Omitted PART JJ Section 1. Subsection (a) of section 614 of the tax law, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the New York standard deduction of a resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual [whose federal exemption amount is zero] WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred nine- ty-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty- nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. § 2. Section 612 of the tax law is amended by adding two new subsections (w) and (x) to read as follows: (W) ALIMONY MODIFICATIONS. (1) IN THE CASE OF APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA- BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) (A) THE TERM "ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. (B) THE TERM "APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS MADE UNDER AN ALIMONY OR SEPARATION INSTRUMENT (AS DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97) THAT WAS EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANY DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR BEFORE SUCH DATE AND MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION. (X) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. S. 7509--C 42 A. 9509--C (2) APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTIONS ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 3. Subsection (a) of section 615 of the tax law, as amended by section 1 of part HH of chapter 57 of the laws of 2010, is amended to read as follows: (a) General. If federal taxable income of a resident individual is determined by itemizing deductions OR CLAIMING THE FEDERAL STANDARD DEDUCTION from his OR HER federal adjusted gross income, he OR SHE may elect to deduct his OR HER New York itemized deduction [in lieu of] OR CLAIM his OR HER New York standard deduction. The New York itemized deduction of a resident individual means the total amount of his OR HER deductions from federal adjusted gross income ALLOWED, other than feder- al deductions for personal exemptions, as provided in the laws of the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME- DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica- tions specified in this section, except as provided for under subsections (f) and (g) of this section. § 4. Subdivision (a) of section 11-1714 of the administrative code of the city of New York, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the city standard deduction of a city resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual [whose federal exemption amount is zero] WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred nine- ty-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty- nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. § 5. Section 11-1712 of the administrative code of the city of New York is amended by adding two new subdivisions (u) and (v) to read as follows: (U) ALIMONY MODIFICATIONS. (1) IN THE CASE OF APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA- BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) (A) THE TERM "ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. (B) THE TERM "APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS" MEANS PAYMENTS MADE UNDER AN ALIMONY OR SEPARATION INSTRUMENT (AS DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97) THAT WAS EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, AND ANY DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR BEFORE SUCH DATE AND S. 7509--C 43 A. 9509--C MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION. (V) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY: (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT RECEIVED BY THE TAXPAYER DURING THE TAXABLE YEAR. (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR. (2) APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTION ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97. § 6. Subdivision (a) of section 11-1715 of the administrative code of the city of New York, as amended by section 5 of part HH of chapter 57 of the laws of 2010, is amended to read as follows: (a) General. If federal taxable income of a city resident individual is determined by itemizing deductions OR CLAIMING THE FEDERAL STANDARD DEDUCTION from his OR HER federal adjusted gross income, such resident individual may elect to deduct his OR HER city itemized deduction [in lieu of] OR CLAIM his OR HER city standard deduction. The city itemized deduction of a city resident individual means the total amount of his OR HER deductions from federal adjusted gross income ALLOWED, other than federal deductions for personal exemptions, as provided in the laws of the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME- DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica- tions specified in this section, except as provided for under subdivi- sions (f) and (g) of this section. § 7. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART KK Section 1. Paragraph (b) of subdivision 6-a of section 208 of the tax law, as amended by section 5-a of part T of chapter 59 of the laws of 2015, is amended to read as follows: (b) "Exempt CFC income" means (I) EXCEPT TO THE EXTENT DESCRIBED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH, the income required to be included in the taxpayer's federal gross income pursuant to subsection (a) of section 951 of the internal revenue code, received from a corporation that is conducting a unitary business with the taxpayer but is not included in a combined report with the taxpayer, AND (II) SUCH INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SUCH SECTION 951 OF THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AS ADJUSTED BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION, RECEIVED FROM A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, less, (III) in the discretion of the commissioner, any interest deductions directly or indirectly attributable to that income. In lieu of subtracting from its exempt CFC income the amount of those interest deductions, the taxpayer may make a revocable election to reduce its total exempt CFC income by forty percent. If the taxpayer makes this election, the taxpayer must also make the elections provided for in S. 7509--C 44 A. 9509--C paragraph (b) of subdivision six of this section and paragraph (c) of this subdivision. If the taxpayer subsequently revokes this election, the taxpayer must revoke the elections provided for in paragraph (b) of subdivision six of this section and paragraph (c) of this subdivision. A taxpayer which does not make this election because it has no exempt CFC income will not be precluded from making those other elections. THE INCOME DESCRIBED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH SHALL NOT CONSTITUTE INVESTMENT INCOME. § 1-a. Paragraph (b) of subdivision 5-a of section 11-652 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (b) "Exempt CFC income" means (I) EXCEPT TO THE EXTENT DESCRIBED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH, the income required to be included in the taxpayer's federal gross income pursuant to subsection (a) of section [nine hundred fifty-one] 951 of the internal revenue code, received from a corporation that is conducting a unitary business with the taxpayer but is not included in a combined report with the taxpayer, AND (II) SUCH INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SUCH SECTION 951 OF THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AS ADJUSTED BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION, RECEIVED FROM A CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, less, (III) in the discretion of the commis- sioner of finance, any interest deductions directly or indirectly attributable to that income. In lieu of subtracting from its exempt CFC income the amount of those interest deductions, the taxpayer may make a revocable election to reduce its total exempt CFC income by forty percent. If the taxpayer makes this election, the taxpayer must also make the elections provided for in paragraph (b) of subdivision five of this section and paragraph (c) of this subdivision. If the taxpayer subsequently revokes this election, the taxpayer must revoke the elections provided for in paragraph (b) of subdivision five of this section and paragraph (c) of this subdivision. A taxpayer which does not make this election because it has no exempt CFC income will not be precluded from making those other elections. THE INCOME DESCRIBED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH SHALL NOT CONSTITUTE INVESTMENT INCOME. § 2. Subparagraph 6 of paragraph (a) of subdivision 9 of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (6) any amount treated as dividends pursuant to section seventy-eight of the internal revenue code TO THE EXTENT THAT SUCH DIVIDENDS ARE NOT DEDUCTED UNDER SECTION TWO HUNDRED FIFTY OF SUCH CODE; § 3. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding two new subparagraphs 23 and 24 to read as follow: (23) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE. (24) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SECTION 250(A)(1)(A) OF THE INTERNAL REVENUE CODE. § 3-a. Subparagraph 2-a of paragraph (a) and subparagraph 19 of para- graph (b) of subdivision 8 of section 11-652 of the administrative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, are amended and two new subparagraphs 20 and 21 are added to read as follows: S. 7509--C 45 A. 9509--C (2-a) any amounts treated as dividends pursuant to section seventy- eight of the internal revenue code TO THE EXTENT SUCH DIVIDENDS ARE NOT DEDUCTED UNDER SECTION 250 OF SUCH CODE; (19) the amount of any federal deduction for taxes imposed under arti- cle twenty-three of the tax law[.]; (20) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE; (21) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SECTION 250(A)(1)(A) OF THE INTERNAL REVENUE CODE. § 4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as amended by section 13-a of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (1) If any taxpayer fails to file a declaration of estimated tax under article nine-A of this chapter, or fails to pay all or any part of an amount which is applied as an installment against such estimated tax, it shall be deemed to have made an underpayment of estimated tax. There shall be added to the tax for the taxable year an amount at the under- payment rate set by the commissioner pursuant to section one thousand ninety-six of this article, or if no rate is set, at the rate of seven and one-half percent per annum upon the amount of the underpayment for the period of the underpayment but not beyond the fifteenth day of the [third] FOURTH month following the close of the taxable year. PROVIDED, HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF SUCH TAX RELATED TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY OR INDI- RECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER OR THE FORTY PERCENT REDUCTION OF SUCH EXEMPT CFC INCOME IN LIEU OF INTEREST ATTRIBUTION IF THE ELECTION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SUCH SECTION IS MADE. The amount of the underpayment shall be, with respect to any installment of estimated tax computed on the basis of either the preceding year's tax or the second preceding year's tax, the excess of the amount required to be paid over the amount, if any, paid on or before the last day prescribed for such payment or, with respect to any other install- ment of estimated tax, the excess of the amount of the installment which would be required to be paid if the estimated tax were equal to ninety- one percent of the tax shown on the return for the taxable year (or if no return was filed, ninety-one percent of the tax for such year) over the amount, if any, of the installment paid on or before the last day prescribed for such payment. In any case in which there would be no underpayment if "eighty percent" were substituted for "ninety-one percent" each place it appears in this subsection, the addition to the tax shall be equal to seventy-five percent of the amount otherwise determined. No underpayment shall be deemed to exist with respect to a declaration or installment otherwise due on or after the termination of existence of the taxpayer. § 4-a. Subdivision 3 of section 11-676 of the administrative code of the city of New York, as amended by section 12 of part D of chapter 60 of the laws of 2015, is amended to read as follows: 3. Failure to file declaration or underpayment of estimated tax. If any taxpayer fails to file a declaration of estimated tax under subchap- ter two, three or three-A of this chapter, or fails to pay all or any part of an amount which is applied as an installment against such esti- mated tax, it shall be deemed to have made an underpayment of estimated S. 7509--C 46 A. 9509--C tax. There shall be added to the tax for the taxable year an amount at the underpayment rate set by the commissioner of finance pursuant to section 11-687 of this subchapter, or, if no rate is set, at the rate of seven and one-half percent per annum upon the amount of the underpayment for the period of the underpayment but not beyond the fifteenth day of the [third] FOURTH month following the close of the taxable year. PROVIDED, HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, NO AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF SUCH TAX RELATED TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS CHAPTER OR THE FORTY PERCENT REDUCTION OF SUCH EXEMPT CFC INCOME IN LIEU OF INTEREST ATTRIBUTION IF THE ELECTION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION FIVE-A OF SUCH SECTION IS MADE. The amount of the underpayment shall be, with respect to any installment of estimated tax computed on the basis of EITHER the preceding year's tax OR THE SECOND PRECEDING YEAR'S TAX, the excess of the amount required to be paid over the amount, if any, paid on or before the last day prescribed for such payment or, with respect to any other installment of estimated tax, the excess of the amount of the installment which would be required to be paid if the estimated tax were equal to ninety percent of the tax shown on the return for the taxable year (or if no return was filed, ninety percent of the tax for such year) over the amount, if any, of the installment paid on or before the last day prescribed for such payment. In any case in which there would be no underpayment if "eighty percent" were substituted for "ninety percent" each place it appears in this subdivision, the addition to the tax shall be equal to seventy-five percent of the amount otherwise determined. No underpayment shall be deemed to exist with respect to a declaration or installment otherwise due on or after the termination of existence of the taxpayer. § 4-b. Subparagraphs (A) and (B) of paragraph 1 of subdivision (b) of section 1503 of the tax law, as amended by section 12 of part FF1 of chapter 57 of the laws of 2008, are amended to read as follows: (A) income, gains and losses from subsidiary capital which do not include the amount of a recovery in respect of any war loss, EXCEPT THAT THIS MODIFICATION SHALL NOT APPLY TO THE AMOUNT DESCRIBED IN SUBPARA- GRAPH (S) OF THIS PARAGRAPH; (B) fifty percent of dividends other than from subsidiaries, EXCEPT THAT THIS MODIFICATION SHALL NOT APPLY TO THE AMOUNT DESCRIBED IN SUBPARAGRAPH (S) OF THIS PARAGRAPH, AND except that, in the case of a life insurance company, such modification shall apply only with respect to the company's share of such dividends, which share means the percent- age determined under paragraph one of subsection (a) of section eight hundred twelve of the internal revenue code; § 4-c. Paragraph 1 of subdivision (b) of section 1503 of the tax law is amended by adding a new subparagraph (S) to read as follows: (S) THE INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965 OF SUCH CODE AS ADJUSTED BY SUBSECTION (B) OF SUCH SECTION BUT WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION TO THE EXTENT SUCH INCOME IS RECEIVED FROM A CORPORATION THAT IS NOT INCLUDED IN A COMBINED RETURN WITH THE TAXPAYER. S. 7509--C 47 A. 9509--C § 4-d. Subparagraph (B) of paragraph 2 of subdivision (b) of section 1503 of the tax law, as added by chapter 649 of the laws of 1974, is amended to read as follows: (B) any part of any income from dividends or interest on any kind of stock, securities or indebtedness, except as provided in subparagraphs (A) [and], (B) AND (S) of paragraph one hereof; § 4-e. Subparagraph (H) of paragraph 2 of subdivision (b) of section 1503 of the tax law, as amended by section 13 of part FF1 of chapter 57 of the laws of 2008, is amended to read as follows: (H) in the discretion of the commissioner, any amount of interest directly or indirectly and any other amount directly attributable as a carrying charge or otherwise to subsidiary capital or to income, gains or losses from subsidiary capital, OR TO THE INCOME DESCRIBED IN SUBPAR- AGRAPH (S) OF PARAGRAPH ONE OF THIS SUBDIVISION; § 4-f. Paragraph 2 of subdivision (b) of section 1503 of the tax law is amended by adding new subparagraphs (W) and (X) to read as follows: (W) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE. (X) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SECTION 250(A)(1)(A) OF THE INTERNAL REVENUE CODE. § 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017. PART LL Section 1. The state finance law is amended by adding a new section 92-gg to read as follows: § 92-GG. CHARITABLE GIFTS TRUST FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE STATE COMPTROLLER A SPECIAL FUND PURSUANT TO SECTION ELEVEN OF THIS CHAPTER TO BE KNOWN AS THE "CHARITABLE GIFTS TRUST FUND". 2. MONEYS IN THE CHARITABLE GIFTS TRUST FUND SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER OR THE COMMISSIONER OF TAXATION AND FINANCE. PROVIDED, HOWEVER THAT ANY MONEYS OF THE FUND NOT REQUIRED FOR IMMEDIATE USE MAY, AT THE DISCRETION OF THE COMPTROLLER, IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET, BE INVESTED BY THE COMPTROLLER IN OBLIGATIONS OF THE UNITED STATES OR THE STATE. THE PROCEEDS OF ANY SUCH INVESTMENT SHALL BE RETAINED BY THE FUND AS ASSETS TO BE USED FOR PURPOSES OF THE FUND. 3. EXCEPT AS SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS SECTION, NO MONEYS FROM THE CHARITABLE GIFTS TRUST FUND SHALL BE TRANSFERRED TO ANY OTHER FUND, NOR SHALL MONEYS FROM THE FUND BE USED TO MAKE PAYMENTS FOR ANY PURPOSE OTHER THAN THE PURPOSES SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS SECTION. 4. THE CHARITABLE GIFTS TRUST FUND SHALL HAVE TWO SEPARATE AND DISTINCT ACCOUNTS, AS SET FORTH IN PARAGRAPHS A AND B OF THIS SUBDIVI- SION. MONEYS IN EACH OF THE ACCOUNTS SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS OF ANY OTHER ACCOUNT WITH- IN THE FUND. A. THE "HEALTH CHARITABLE ACCOUNT" SHALL CONSIST OF MONETARY GRANTS, GIFTS OR BEQUESTS RECEIVED BY THE STATE, AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE. MONEYS OF SUCH ACCOUNT SHALL ONLY BE EXPENDED FOR THE SUPPORT OF SERVICES RELATING TO PRIMARY, PREVENTIVE, AND INPATIENT HEALTH CARE, DENTAL AND VISION CARE, HUNGER PREVENTION AND NUTRITIONAL ASSISTANCE, AND OTHER SERVICES FOR NEW YORK STATE RESIDENTS WITH THE OVERALL GOAL OF ENSURING THAT NEW YORK S. 7509--C 48 A. 9509--C STATE RESIDENTS HAVE ACCESS TO QUALITY HEALTH CARE AND OTHER RELATED SERVICES. B. THE "ELEMENTARY AND SECONDARY EDUCATION CHARITABLE ACCOUNT" SHALL CONSIST OF MONETARY GRANTS, GIFTS OR BEQUESTS RECEIVED BY THE STATE FOR THE SUPPORT OF ELEMENTARY AND SECONDARY EDUCATION OF CHILDREN ENROLLED IN PUBLIC SCHOOL DISTRICTS IN THE STATE AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE. MONEYS OF SUCH ACCOUNT SHALL ONLY BE EXPENDED FOR THE PROVISION OF ELEMENTARY AND SECONDARY EDUCATION OF CHILDREN IN THE STATE. § 2. Credits for certain charitable contributions to Health Research, Inc. 1. Charitable monetary contributions to Health Research, Inc. (hereinafter "the corporation") that conform to the provisions of this subdivision shall be considered qualified contributions for purposes of the tax credit available pursuant to subsection (iii) of section 606 of the tax law. (a) Applications for contribution authorization certificates. Contributors seeking to make a qualified contribution to the corporation shall apply to the corporation for a contribution authorization certif- icate for such contribution. Such application shall be in the form and manner prescribed by the corporation. The corporation may allow contrib- utors to make multiple applications on the same form, provided that each contribution listed on such application shall be treated as a separate application and that the corporation shall issue separate contribution authorization certificates for each such application. (b) Contribution authorization and receipt certificates. (i) Issuance of certificates. The president of the corporation shall issue contrib- ution authorization certificates in two phases. In phase one, which begins on the first day of January and ends on the thirtieth day of September, the president of the corporation shall accept applications for contribution authorization certificates, but shall not issue any such certificates. Commencing after the first day of October, the pres- ident of the corporation shall issue contribution authorization certif- icates for applications received during phase one, provided that if the aggregate total of the contributions for which applications have been received during phase one exceeds the amount of the contribution cap in paragraph (e) of this subdivision, the authorized contribution amount listed on each contribution authorization certificate shall equal the pro-rata share of the contribution cap. If the contribution cap is not exceeded, phase two commences on October first and ends on November fifteenth, during which period the president of the corporation shall issue contribution authorization certificates on a first-come first- served basis based upon the date the corporation received the contribu- tor's application for such certificate; provided, however, that if on any day the corporation receives applications requesting contribution authorization certificates for contributions that in the aggregate exceed the amount of the remaining available contribution cap on such day, the authorized contribution amount listed in each contribution authorization certificate shall be the contributor's pro-rata share of the remaining available contribution cap. For purposes of determining a contributor's pro-rata share of remaining available contribution cap, the head of the corporation shall multiply the amount of remaining available contribution cap by a fraction, the numerator of which equals the total contribution amount listed on the contributor's application and the denominator of which equals the aggregate amount of contrib- utions listed on the applications for contribution authorization certif- icates received on such day. Contribution authorization certificates S. 7509--C 49 A. 9509--C for applications received during phase one shall be mailed no later than the fifteenth day of October. Contribution authorization certificates for applications received during phase two shall be mailed within twenty days of receipt of such applications. Provided, however, that no contribution authorization certificates for applications received during phase two shall be issued until all of the contribution authorization certificates for applications received during phase one have been issued. (ii) Contribution authorization certificate contents. Each contrib- ution authorization certificate shall state: (A) the date such certif- icate was issued; (B) the date by which the authorized contributions listed in the certificate must be made, which shall be no later than November thirtieth of the year for which the contribution authorization certificate was issued; (C) the contributor's name and address; (D) the amount of authorized contributions; (E) the contribution authorization certificate's certificate number; and (F) any other information that the president of the corporation or the commissioner of taxation and finance deems necessary. (c) Certificate of receipt. If a contributor makes an authorized contribution to the corporation no later than the date by which such authorized contribution is required to be made, the corporation shall, within 30 days of receipt of the authorized contribution, issue to the contributor a written certificate of receipt. Each certificate of receipt shall state: (i) the name and address of the corporation; (ii) the contributor's name and address; (iii) the date for each contrib- ution; (iv) the amount of each contribution and the corresponding contribution authorization certificate number; (v) the total amount of contributions; and (vi) any other information that the commissioner of taxation and finance deems necessary. (d) Notification to the department of the issuance of a certificate of receipt. Upon the issuance of a certificate of receipt, the corporation shall, within thirty days of issuing the certificate of receipt, provide the department of taxation and finance with notification of the issuance of such certificate in the form and manner prescribed by the department of taxation and finance. (e) Contribution cap. The maximum permitted contributions under this section available annually for calendar year two thousand eighteen and all following years shall be ten million dollars. 2. Use of authorized contributions. The corporation shall develop policies and procedures to ensure that all contributions for which certificates of receipt have been issued are expended only for one or more of the following charitable health purposes: to support and supple- ment laboratory facilities and programs, including, but not limited to, laboratory testing and scientific research; to support and supplement bioinformatics programs, including, but not limited to, developing public health data analytical strategies; and to support and supplement other public health activities. § 3. Credits for certain charitable contributions to University Foun- dations. 1. Charitable monetary contributions to the State University of New York Impact Foundation (hereinafter "the SUNY foundation") or the Research Foundation of the City University of New York (hereinafter "the CUNY foundation") that conform to the provisions of this subdivision shall be considered qualified contributions for purposes of the tax credit available pursuant to subsection (iii) of section 606 of the tax law. S. 7509--C 50 A. 9509--C (a) Applications for contribution authorization certificates. Contributors seeking to make a qualified contribution to the SUNY foun- dation or the CUNY foundation shall apply to such foundation for a contribution authorization certificate for such contribution. Such application shall be in the form and manner prescribed by the corpo- ration. Each foundation may allow contributors to make multiple applica- tions on the same form, provided that each contribution listed on such application shall be treated as a separate application and that the foundation shall issue separate contribution authorization certificates for each such application. (b) Contribution authorization and receipt certificates. (i) Issuance of certificates. The head of each foundation shall issue contribution authorization certificates in two phases. In phase one, which begins on the first day of January and ends on the thirtieth day of September, the head of each foundation shall accept applications for contribution authorization certificates, but shall not issue any such certificates. Commencing after the first day of October, the head of each foundation shall issue contribution authorization certificates for applications received during phase one, provided that if the aggregate total of the contributions for which applications have been received during phase one exceeds the amount of the contribution cap in paragraph (e) of this subdivision, the authorized contribution amount listed on each contrib- ution authorization certificate shall equal the pro-rata share of the contribution cap. If the contribution cap is not exceeded, phase two commences on October first and ends on November fifteenth, during which period the head of each foundation shall issue contribution authori- zation certificates on a first-come first-served basis based upon the date the foundation received the contributor's application for such certificate; provided, however, that if on any day the SUNY foundation or the CUNY foundation receives applications requesting contribution authorization certificates for contributions that in the aggregate exceed the amount of the remaining available contribution cap on such day, the authorized contribution amount listed in each contribution authorization certificate shall be the contributor's pro-rata share of the remaining available contribution cap. For purposes of determining a contributor's pro-rata share of remaining available contribution cap, the head of each foundation shall multiply the amount of remaining available contribution cap by a fraction, the numerator of which equals the total contribution amount listed on the contributor's application and the denominator of which equals the aggregate amount of contrib- utions listed on the applications for contribution authorization certif- icates received on such day. Contribution authorization certificates for applications received during phase one shall be mailed no later than the fifteenth day of October. Contribution authorization certificates for applications received during phase two shall be mailed within twenty days of receipt of such applications. Provided, however, that no contribution authorization certificates for applications received during phase two shall be issued until all of the contribution authorization certificates for applications received during phase one have been issued. (ii) Contribution authorization certificate contents. Each contrib- ution authorization certificate shall state: (A) the date such certif- icate was issued; (B) the date by which the authorized contributions listed in the certificate must be made, which shall be no later than November thirtieth of the year for which the contribution authorization certificate was issued; (C) the contributor's name and address; (D) the S. 7509--C 51 A. 9509--C amount of authorized contributions; (E) the contribution authorization certificate's certificate number; and (F) any other information that the head of the respective foundation or the commissioner of taxation and finance deems necessary. (c) Certificate of receipt. If a contributor makes an authorized contribution to the SUNY foundation or the CUNY foundation no later than the date by which such authorized contribution is required to be made, such foundation shall, within thirty days of receipt of the authorized contribution, issue to the contributor a written certificate of receipt. Each certificate of receipt shall state: (i) the name and address of the foundation; (ii) the contributor's name and address; (iii) the date for each contribution; (iv) the amount of each contribution and the corre- sponding contribution authorization certificate number; (v) the total amount of contributions; and (vi) any other information that the commis- sioner of taxation and finance deems necessary. (d) Notification to the department of the issuance of a certificate of receipt. Upon the issuance of a certificate of receipt, the respective foundation shall, within thirty days of issuing the certificate of receipt, provide the department of taxation and finance with notifica- tion of the issuance of such certificate in the form and manner prescribed by the department of taxation and finance. (e) Contribution cap. The maximum permitted contributions under this section available annually for calendar year two thousand eighteen and all following years shall be ten million dollars for the SUNY foundation and ten million dollars for the CUNY foundation. 2. Use of authorized contributions. The SUNY foundation and the CUNY foundation shall develop policies and procedures to ensure that all contributions for which certificates of receipt have been issued are expended only to support programs benefiting students enrolled at the state university of New York and the city university of New York, respectively. Provided however, contributions may not be used for schol- arships or tuition assistance. § 4. Section 606 of the tax law is amended by adding a new subsection (iii) to read as follows: (III) CREDIT FOR CONTRIBUTIONS TO CERTAIN FUNDS. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, AN INDIVID- UAL TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED UNDER THIS ARTICLE FOR AN AMOUNT EQUAL TO EIGHTY-FIVE PERCENT OF THE SUM OF: (1) THE AMOUNT CONTRIBUTED BY THE TAXPAYER DURING THE IMMEDIATELY PRECEDING TAXABLE YEAR TO ANY OR ALL OF THE FOLLOWING ACCOUNTS WITHIN THE CHARITABLE GIFTS TRUST FUND SET FORTH IN SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW: THE HEALTH CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH A OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW, OR THE ELEMENTARY AND SECONDARY EDUCATION CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH B OF SUBDIVISION FOUR OF SECTION NINE- TY-TWO-GG OF THE STATE FINANCE LAW; (2) THE AMOUNT OF QUALIFIED CONTRIB- UTIONS MADE BY THE TAXPAYER TO HEALTH RESEARCH, INC. IN ACCORDANCE WITH SECTION TWO OF THE CHAPTER OF THE LAWS OF TWO THOUSAND EIGHTEEN THAT ADDED THIS SUBSECTION; AND (3) THE AMOUNT OF QUALIFIED CONTRIBUTIONS MADE BY THE TAXPAYER TO THE STATE UNIVERSITY OF NEW YORK IMPACT FOUNDA- TION AND/OR THE RESEARCH FOUNDATION OF THE CITY UNIVERSITY OF NEW YORK IN ACCORDANCE WITH SECTION THREE OF THE CHAPTER OF THE LAWS OF TWO THOU- SAND EIGHTEEN THAT ADDED THIS SUBSECTION. § 5. Section 1604 of the education law is amended by adding a new subdivision 44 to read as follows: S. 7509--C 52 A. 9509--C 44. TO ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE TRUSTEES, TO RECEIVE UNRESTRICTED CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE DISTRICT FOR PUBLIC EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY BE INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICIPAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE TRUSTEES, THE MONIES OF SUCH CHARITABLE FUND SHALL BE TRANSFERRED TO THE SCHOOL DISTRICT'S GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE SCHOOL DISTRICT FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER. THE SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOSITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES. § 6. Section 1709 of the education law is amended by adding a new subdivision 12-b to read as follows: 12-B. TO ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE BOARD, TO RECEIVE UNRESTRICTED CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE DISTRICT FOR PUBLIC EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY BE INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICIPAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE BOARD, THE MONIES OF SUCH CHARITABLE FUND SHALL BE TRANSFERRED TO THE SCHOOL DISTRICT'S GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE SCHOOL DISTRICT FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER. THE SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOSITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES. § 7. Section 2590-h of the education law is amended by adding a new subdivision 54 to read as follows: 54. TO ESTABLISH A CHARITABLE FUND TO RECEIVE UNRESTRICTED CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE CITY SCHOOL DISTRICT FOR PUBLIC EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY BE INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICI- PAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE CHANCELLOR, THE MONIES OF SUCH CHARITABLE FUND SHALL BE TRANSFERRED TO THE CITY SCHOOL DISTRICT'S GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE CITY FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER. THE CITY SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOS- ITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES. § 8. The general municipal law is amended by adding two new sections 6-t and 6-u to read as follows: § 6-T. CHARITABLE GIFTS RESERVE FUND. 1. THE GOVERNING BOARD OF ANY COUNTY OR NEW YORK CITY MAY ESTABLISH A RESERVE FUND TO BE KNOWN AS A CHARITABLE GIFTS RESERVE FUND. 2. SUCH FUND MAY RECEIVE UNRESTRICTED CHARITABLE MONETARY CONTRIB- UTIONS AND THE MONEYS IN SUCH FUND SHALL BE DEPOSITED AND SECURED IN THE S. 7509--C 53 A. 9509--C MANNER PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD, OR THE CHIEF FISCAL OFFICER OF SUCH COUNTY, OR NEW YORK CITY, IF THE GOVERNING BOARD SHALL DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE MONEYS IN SUCH FUND IN THE MANNER PROVIDED BY SECTION ELEVEN OF THIS ARTICLE. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO DEPOSITED OR INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. THE SEPARATE IDENTITY OF SUCH FUND SHALL BE MAINTAINED WHETHER ITS ASSETS CONSIST OF CASH OR INVESTMENTS OR BOTH. 3. AT THE END OF THE FISCAL YEAR, THE GOVERNING BOARD OF THE COUNTY OR NEW YORK CITY, WITHIN SIXTY DAYS OF THE CLOSE OF THE FISCAL YEAR, SHALL TRANSFER THE FUNDS TO THE GENERAL FUND OR OTHER FUND OF THE MUNICIPAL CORPORATION, SO THAT THE FUNDS MAY BE USED FOR CHARITABLE PURPOSES. 4. THE GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR CONTRIBUTIONS TO THE CHARITABLE GIFTS RESERVE FUND, WHICH SHALL INCLUDE THE PROVISION OF A WRITTEN ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR. § 6-U. CHARITABLE GIFTS RESERVE FUND. 1. THE GOVERNING BOARD OF ANY CITY WITH A POPULATION LESS THAN ONE MILLION, TOWN OR VILLAGE MAY ESTAB- LISH A RESERVE FUND TO BE KNOWN AS A CHARITABLE GIFTS RESERVE FUND. 2. SUCH FUND MAY RECEIVE UNRESTRICTED CHARITABLE MONETARY CONTRIB- UTIONS AND THE MONEYS IN SUCH FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD, OR THE CHIEF FISCAL OFFICER OF SUCH TOWN, VILLAGE OR CITY, IF THE GOVERNING BOARD SHALL DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE MONEYS IN SUCH FUND IN THE MANNER PROVIDED BY SECTION ELEVEN OF THIS ARTICLE. ANY INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO DEPOSITED OR INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. THE SEPARATE IDENTITY OF SUCH FUND SHALL BE MAINTAINED WHETHER ITS ASSETS CONSIST OF CASH OR INVESTMENTS OR BOTH. 3. AT THE END OF THE FISCAL YEAR, THE GOVERNING BOARD OF THE TOWN, VILLAGE OR CITY, WITHIN SIXTY DAYS OF THE CLOSE OF THE FISCAL YEAR, MAY TRANSFER THE FUNDS TO THE GENERAL FUND OR OTHER FUND OF THE MUNICIPAL CORPORATION, SO THAT THE FUNDS MAY BE USED FOR CHARITABLE PURPOSES. 4. THE GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR CONTRIBUTIONS TO THE CHARITABLE GIFTS RESERVE FUND, WHICH SHALL INCLUDE THE PROVISION OF A WRITTEN ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR. § 9. The real property tax law is amended by adding a new section 980-a to read as follows: § 980-A. TAX CREDITS FOR CONTRIBUTIONS TO CERTAIN FUNDS. 1. (A) A MUNICIPAL CORPORATION THAT HAS ESTABLISHED A FUND PURSUANT TO SUBDIVI- SION FORTY-FOUR OF SECTION SIXTEEN HUNDRED FOUR OF THE EDUCATION LAW, SUBDIVISION TWELVE-B OF SECTION SEVENTEEN HUNDRED NINE OF THE EDUCATION LAW, SUBDIVISION FIFTY-FOUR OF SECTION TWENTY-FIVE HUNDRED NINETY-H OF THE EDUCATION LAW, OR SECTION SIX-T OR SIX-U OF THE GENERAL MUNICIPAL LAW, MAY ADOPT A LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, A RESOLUTION, AUTHORIZING A TAX CREDIT TO BE PROVIDED PURSUANT TO THIS SECTION FOR CONTRIBUTIONS TO SUCH FUND. FOR PURPOSES OF THIS SECTION, A MUNICIPAL CORPORATION THAT HAS ESTABLISHED SUCH A FUND AND AUTHORIZED SUCH A CREDIT SHALL BE REFERRED TO AS A "PARTICIPATING" MUNICIPAL CORPO- RATION. (B) ON AND AFTER A DATE SPECIFIED IN THE LOCAL LAW OR RESOLUTION ADOPTED BY A PARTICIPATING MUNICIPAL CORPORATION PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, THE OWNER OR OWNERS OF REAL PROPERTY SHALL BE ALLOWED A CREDIT AGAINST THE REAL PROPERTY TAXES OF A PARTICIPATING MUNICIPAL CORPORATION THAT HAVE BEEN IMPOSED UPON SUCH PROPERTY. THE AMOUNT OF SUCH CREDIT SHALL EQUAL NINETY-FIVE PERCENT, OR SUCH LESSER ALLOWABLE PERCENTAGE CREDIT AS MAY HAVE BEEN ESTABLISHED PURSUANT TO S. 7509--C 54 A. 9509--C PARAGRAPH (C) OF THIS SUBDIVISION, OF THE AMOUNT CONTRIBUTED BY ONE OR MORE OF THE OWNERS OF SUCH PROPERTY DURING THE "ASSOCIATED CREDIT YEAR" AS DEFINED IN THIS SECTION, TO ANY OR ALL OF THE FUNDS ESTABLISHED BY SUCH MUNICIPAL CORPORATION, SUBJECT TO THE LIMIT ESTABLISHED PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION, IF ANY. (C) THE PARTICIPATING MUNICIPAL CORPORATION MAY ESTABLISH A LIMIT UPON THE AMOUNT OR PERCENTAGE OF SUCH CREDIT TO BE ALLOWED IN ANY GIVEN FISCAL YEAR, IN WHICH CASE THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED ANY LIMIT SO ESTABLISHED. ANY SUCH LIMIT SHALL BE ADOPTED BY LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, BY RESOLUTION, WHICH LOCAL LAW OR RESOLUTION MAY EITHER BE THE SAME AS OR SEPARATE FROM THE LOCAL LAW OR RESOLUTION THAT INITIALLY AUTHORIZED THE CREDIT. ONCE SUCH A LIMIT HAS BEEN ADOPTED, IT MAY BE AMENDED OR REPEALED THEREAFTER BY LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, BY RESOLUTION, PROVIDED THAT ANY SUCH AMENDMENT OR REPEAL SHALL ONLY APPLY TO TAXES OF THE PARTICIPATING MUNICIPAL CORPORATION FOR FISCAL YEARS COMMENCING AFTER THE ADOPTION OF SUCH LOCAL LAW OR RESOLUTION. A COPY OF ANY LOCAL LAW OR RESOLUTION ESTABLISHING, AMENDING OR REPEALING SUCH A LIMIT SHALL BE PROVIDED TO THE COLLECTING OFFICER WHO COLLECTS THE TAXES OF THE PARTICIPATING MUNICIPAL CORPORATION. 2. FOR PURPOSES OF THIS SECTION, THE "ASSOCIATED CREDIT YEAR" SHALL BE THE TWELVE-MONTH PERIOD DURING WHICH THE OWNER OF THE PROPERTY HAS MADE A CONTRIBUTION DESCRIBED IN SUBDIVISION ONE OF THIS SECTION THAT ENDS ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE TAXES OF THE PARTICIPATING MUNICIPAL CORPORATION MAY BE PAID WITHOUT INTEREST OR PENALTIES, SUBJECT TO THE FOLLOWING: (A) WHERE SUCH TAXES ARE PAYABLE IN INSTALLMENTS, SUCH TWELVE-MONTH PERIOD SHALL END ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE FIRST INSTALLMENT OF SUCH TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES. (B) WHERE A PARTICIPATING MUNICIPAL CORPORATION IS A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, SUCH TWELVE-MONTH PERIOD SHALL END ON THE LAST DAY PRESCRIBED BY LAW ON WHICH CITY TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES, OR IF APPLICABLE, ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE FIRST INSTALLMENT OF SUCH TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES. (C) EACH SUCH TWELVE-MONTH PERIOD SHALL BE DETERMINED WITHOUT REGARD TO THE POSSIBILITY THAT THE PERIOD PRESCRIBED BY LAW FOR PAYING SUCH TAXES WITHOUT INTEREST OR PENALTIES MAY BE EXTENDED DUE TO A DELAY IN THE FIRST PUBLICATION OF THE COLLECTING OFFICER'S NOTICE AS PROVIDED BY SECTIONS THIRTEEN HUNDRED TWENTY-TWO OR THIRTEEN HUNDRED TWENTY-FOUR OF THIS CHAPTER OR A COMPARABLE LAW, OR DUE TO AN EXECUTIVE ORDER ISSUED IN CONNECTION WITH A STATE DISASTER EMERGENCY AS PROVIDED BY SUBDIVISION TWO OF SECTION NINE HUNDRED TWENTY-FIVE-A OF THIS CHAPTER. 3. THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE ADMINISTERED AS FOLLOWS: (A) THE ADMINISTRATOR OF THE FUND OR ITS DESIGNATED AGENT SHALL, UPON RECEIVING A CONTRIBUTION TO THE FUND SPECIFIED IN SUBDIVISION ONE OF THIS SECTION DURING A CREDIT YEAR, FURNISH THE PROPERTY OWNER WITH AN ACKNOWLEDGEMENT IN DUPLICATE. SUCH ACKNOWLEDGEMENT SHALL BE PROVIDED ON A FORM PRESCRIBED BY THE COMMISSIONER AND SHALL SPECIFY THE AMOUNT OF THE CONTRIBUTION, THE NAME AND ADDRESS OF THE DONOR, THE DATE THE CONTRIBUTION WAS RECEIVED, THE AUTHORIZED SIGNATURE OF THE ADMINISTRATOR OR AGENT, AND SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL REQUIRE. (B) AFTER RECEIVING SUCH AN ACKNOWLEDGEMENT, THE PROPERTY OWNER MAY PRESENT IT TO THE APPROPRIATE COLLECTING OFFICER ON OR BEFORE THE LAST DAY PRESCRIBED BY LAW ON WHICH TAXES MAY BE PAID WITHOUT INTEREST OR S. 7509--C 55 A. 9509--C PENALTY, TOGETHER WITH A CREDIT CLAIM ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH CREDIT CLAIM FORM SHALL CONTAIN THE NAME OF THE PROPERTY OWNER OR OWNERS, THE DATE AND AMOUNT OF THE CONTRIBUTIONS MADE TO THE ACCOUNT DURING THE ASSOCIATED CREDIT YEAR, THE ADDRESS OF THE PROPERTY TO WHICH THE CREDIT CLAIM RELATES, AND SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL REQUIRE. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COLLECTING OFFICER SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO GRANT THE PROPERTY OWNER A TAX CREDIT EQUAL TO NINETY- FIVE PERCENT, OR SUCH LESSER ALLOWABLE PERCENTAGE CREDIT AS MAY HAVE BEEN ESTABLISHED PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, OF THE AMOUNT OF THE CONTRIBUTIONS MADE DURING THE ASSOCIATED CREDIT YEAR AS SPECIFIED ON THE ACKNOWLEDGEMENT, AND TO REDUCE THE TAX LIABILITY ON THE PARCEL ACCORDINGLY, PROVIDED THAT SUCH CREDIT MAY NOT EXCEED ANY PERCENTAGE CREDIT OR OTHER LIMIT ESTABLISHED BY THE PARTIC- IPATING MUNICIPAL CORPORATION PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, IF SUCH A LIMIT HAS BEEN ESTABLISHED, AND MAY NOT EXCEED THE PROPERTY TAXES DUE OR PAID THAT ARE ATTRIBUTABLE TO THE PARTICIPATING MUNICIPAL CORPORATION. WHERE TAXES ARE PAYABLE IN INSTALL- MENTS, IF THE CREDIT EXCEEDS THE AMOUNT OF THE FIRST INSTALLMENT, THE EXCESS SHALL BE APPLIED TO FUTURE INSTALLMENTS UNTIL EXHAUSTED. THE PARTICIPATING MUNICIPAL CORPORATION MAY ADOPT A LOCAL LAW, OR IN THE CASE OF A SCHOOL DISTRICT, A RESOLUTION, PROVIDING THAT WHERE A PROPERTY OWNER SUBMITS A CREDIT CLAIM FORM TO THE COLLECTING OFFICER PRIOR TO THE COLLECTING OFFICER'S RECEIPT OF THE TAX WARRANT, OR SUCH OTHER DATE AS MAY BE SPECIFIED IN SUCH LOCAL LAW OR RESOLUTION, THE ASSOCIATED PROPER- TY TAX BILL SHALL REFLECT A REDUCTION IN THE TAX LIABILITY EQUAL TO THE CREDIT AUTHORIZED BY THIS SECTION; PROVIDED HOWEVER THAT IF THE COLLECT- ING OFFICER IS NOT EMPLOYED BY THE PARTICIPATING MUNICIPAL CORPORATION, SUCH LOCAL LAW OR RESOLUTION SHALL NOT TAKE EFFECT UNLESS AND UNTIL THE GOVERNING BODY OF THE MUNICIPAL CORPORATION THAT EMPLOYS THE COLLECTING OFFICER HAS ADOPTED A RESOLUTION AGREEING THERETO. THE DEPARTMENT OF FINANCIAL SERVICES, IN CONSULTATION WITH THE DEPARTMENT, SHALL PROMUL- GATE REGULATIONS RELATED TO THE ADJUSTMENT OF MORTGAGE ESCROW ACCOUNTS TO REFLECT THE CREDITS PROVIDED PURSUANT TO THIS SECTION. (C) IF THE PROPERTY OWNER FAILS TO PRESENT THE ACKNOWLEDGMENT AND CREDIT CLAIM FORM TO THE COLLECTING OFFICER ON OR BEFORE THE LAST DAY PRESCRIBED BY LAW ON WHICH TAXES MAY BE PAID WITHOUT INTEREST OR PENAL- TY, HE OR SHE MAY PRESENT THE SAME TO THE CHIEF FISCAL OFFICER OR CHIEF FINANCIAL OFFICER OF THE PARTICIPATING MUNICIPAL CORPORATION, OR TO A MEMBER OF HIS OR HER STAFF. SUCH OFFICER SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO GRANT THE PROPERTY OWNER A REFUND OF PROPERTY TAXES IN THE AMOUNT OF THE CREDIT, WHICH AMOUNT SHALL BE EQUAL TO NINETY-FIVE PERCENT, OR SUCH LESSER ALLOWABLE PERCENTAGE CREDIT AS MAY HAVE BEEN ESTABLISHED PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, OF THE TOTAL CONTRIBUTIONS MADE DURING THE ASSOCIATED CREDIT YEAR, PROVIDED THAT SUCH REFUND SHALL NOT EXCEED THE PROPERTY TAXES THAT HAVE BEEN PAID ON THE PROPERTY OR ANY PERCENTAGE CREDIT OR OTHER LIMIT ESTABLISHED PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, IF ANY, AND MAY NOT EXCEED THE PROPERTY TAXES DUE OR PAID THAT ARE ATTRIBUTABLE TO THE PARTICIPATING MUNICIPAL CORPORATION. PROVIDED FURTHER, THAT NO INTEREST SHALL BE PAYABLE ON SUCH REFUND IF PAID WITHIN FORTY-FIVE DAYS OF THE RECEIPT OF THE ACKNOWLEDGMENT AND CREDIT CLAIM FORM. THE OWNER OF THE PROPERTY MAY FILE SUCH REFUND CLAIM WITH THE AUTHORIZED OFFICER AT ANY TIME DURING THE THREE YEAR PERIOD BEGINNING IMMEDIATELY AFTER THE LAST DAY SUCH TAXES WERE PAYABLE WITHOUT INTEREST OR PENALTY. S. 7509--C 56 A. 9509--C 4. THE AMOUNT OF THE ITEMIZED DEDUCTION THAT MAY BE CLAIMED BY A TAXPAYER UNDER SECTION SIX HUNDRED FIFTEEN OF THE TAX LAW WITH RESPECT TO THE TAXES PAID ON SUCH PROPERTY MAY NOT EXCEED THE AMOUNT OF THE TAXES OF A PARTICIPATING MUNICIPAL CORPORATION THAT HAVE BEEN IMPOSED UPON SUCH PROPERTY MINUS THE AMOUNT OF THE CREDIT PROVIDED PURSUANT TO THIS SECTION. § 10. This act shall take effect immediately; provided, however, that the amendments to section 2590-h of the education law made by section seven of this act shall not affect the expiration and reversion of such section and shall expire and be deemed repealed therewith; and provided further that if section 2590-h of the education law expires or is repealed and is reverted prior to the effective date of this act, section seven of this act shall not take effect. PART MM Section 1. The tax law is amended by adding a new article 24 to read as follows: ARTICLE 24 EMPLOYER COMPENSATION EXPENSE PROGRAM SECTION 850. DEFINITIONS. 851. EMPLOYER ELECTION. 852. IMPOSITION AND RATE OF TAX. 853. PASS THROUGH OF TAX. 854. PAYMENT OF TAX. 855. EMPLOYEE CREDIT. 856. DEPOSIT AND DISPOSITION OF REVENUE. 857. PROCEDURAL PROVISIONS. § 850. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: (A) EMPLOYER. EMPLOYER MEANS AN EMPLOYER THAT IS REQUIRED BY SECTION SIX HUNDRED SEVENTY-ONE OF THIS CHAPTER TO DEDUCT AND WITHHOLD TAX FROM WAGES. (B) ELECTING EMPLOYER. ELECTING EMPLOYER IS AN EMPLOYER THAT HAS MADE THE ELECTION PROVIDED FOR IN SECTION EIGHT HUNDRED FIFTY-ONE OF THIS ARTICLE. (C) PAYROLL EXPENSE. PAYROLL EXPENSE MEANS WAGES AND COMPENSATION AS DEFINED IN SECTIONS 3121 AND 3231 OF THE INTERNAL REVENUE CODE (WITHOUT REGARD TO SECTION 3121(A)(1) AND SECTION 3231(E)(2)(A)(I)), PAID TO ALL COVERED EMPLOYEES. (D) COVERED EMPLOYEE. COVERED EMPLOYEE MEANS AN EMPLOYEE OF AN ELECT- ING EMPLOYER WHO IS REQUIRED TO HAVE AMOUNTS WITHHELD UNDER SECTION SIX HUNDRED SEVENTY-ONE OF THIS CHAPTER AND RECEIVES ANNUAL WAGES AND COMPENSATION FROM HIS OR HER EMPLOYER OF MORE THAN FORTY THOUSAND DOLLARS ANNUALLY. § 851. EMPLOYER ELECTION. (A) ANY EMPLOYER WHO EMPLOYS COVERED EMPLOY- EES IN THE STATE SHALL BE ALLOWED TO MAKE AN ANNUAL ELECTION TO BE TAXED UNDER THIS ARTICLE. (B) IN ORDER TO BE EFFECTIVE, THE ANNUAL ELECTION MUST BE MADE BY (1) IF THE EMPLOYER IS NOT A CORPORATION, BY ANY MEMBER, OWNER, OR OTHER INDIVIDUAL WITH AUTHORITY TO BIND THE ENTITY OR SIGN RETURNS REQUIRED PURSUANT TO SECTION SIX HUNDRED FIFTY-THREE OF THIS CHAPTER; OR (2) IF THE EMPLOYER IS A FOR-PROFIT OR NOT-FOR-PROFIT CORPORATION, BY ANY OFFI- CER OR MANAGER OF THE EMPLOYER WHO IS AUTHORIZED UNDER THE LAW OF THE STATE WHERE THE CORPORATION IS INCORPORATED OR UNDER THE EMPLOYER'S ORGANIZATIONAL DOCUMENTS TO MAKE THE ELECTION AND WHO REPRESENTS TO HAVING SUCH AUTHORIZATION UNDER PENALTY OF PERJURY; OR (3) IF THE S. 7509--C 57 A. 9509--C EMPLOYER IS A TRUST, BY THE UNANIMOUS CONSENT OF ALL TRUSTEES; OR (4) IF THE EMPLOYER IS A GOVERNMENTAL ENTITY, BY THE CHIEF EXECUTIVE OFFICER OF SUCH GOVERNMENTAL ENTITY. (C) THE ANNUAL ELECTION MUST BE MADE BY DECEMBER FIRST OF EACH CALEN- DAR YEAR AND WILL TAKE EFFECT FOR THE IMMEDIATELY SUCCEEDING CALENDAR YEAR. IF AN ELECTION IS MADE AFTER DECEMBER FIRST OF A CALENDAR YEAR, IT WILL FIRST TAKE EFFECT IN THE SECOND SUCCEEDING CALENDAR YEAR. § 852. IMPOSITION AND RATE OF TAX. A TAX IS HEREBY IMPOSED ON THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES. FOR TWO THOUSAND NINETEEN, THE TAX SHALL BE EQUAL TO ONE AND ONE-HALF PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. FOR TWO THOUSAND TWENTY, THE TAX SHALL BE EQUAL TO THREE PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. FOR TWO THOUSAND TWEN- TY-ONE AND THEREAFTER, THE TAX SHALL BE EQUAL TO FIVE PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. AN ELECTING EMPLOYER SHALL ONLY BE SUBJECT TO THE TAX IMPOSED UNDER THIS ARTICLE ON THE PAYROLL EXPENSE PAID TO ANY COVERED EMPLOYEE DURING THE CALENDAR YEAR IN EXCESS OF FORTY THOUSAND DOLLARS. § 853. PASS THROUGH OF TAX. AN EMPLOYER CANNOT DEDUCT FROM THE WAGES OR COMPENSATION OF AN EMPLOYEE ANY AMOUNT THAT REPRESENTS ALL OR ANY PORTION OF THE TAX IMPOSED ON THE EMPLOYER UNDER THIS ARTICLE. § 854. PAYMENT OF TAX. EMPLOYERS WITH PAYROLL EXPENSE. THE TAX IMPOSED ON THE PAYROLL EXPENSE OF ELECTING EMPLOYERS UNDER SECTION EIGHT HUNDRED FIFTY-TWO OF THIS ARTICLE MUST BE PAID AT THE SAME TIME THE ELECTING EMPLOYER IS REQUIRED TO REMIT PAYMENTS UNDER SECTION SIX HUNDRED SEVEN- TY-FOUR OF THIS CHAPTER; PROVIDED HOWEVER, THAT ELECTING EMPLOYERS SUBJECT TO THE PROVISIONS IN SECTION NINE OF THIS CHAPTER MUST PAY THE TAX ON THE PAYROLL EXPENSE AT THE SAME TIME AS THE WITHHOLDING TAX REMITTED UNDER THE ELECTRONIC PAYMENT REPORTING SYSTEM AND THE ELECTRON- IC FUNDS TRANSFER SYSTEM AUTHORIZED BY SECTION NINE OF THIS CHAPTER. § 855. EMPLOYEE CREDIT. A COVERED EMPLOYEE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER, COMPUTED PURSUANT TO THE PROVISIONS OF SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. § 856. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL- TIES, AND FEES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER. § 857. PROCEDURAL PROVISIONS. (A) GENERAL. ALL PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF ARTICLE TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD BEEN SPECIFICALLY ADJUSTED FOR AND EXPRESSLY REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. NOTWITHSTANDING THE PRECEDING SENTENCE, NO CREDIT AGAINST TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER CAN BE USED TO OFFSET THE TAX DUE UNDER THIS ARTICLE. (B) NOTWITHSTANDING THE PROVISIONS OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS CHAPTER, IF THE COMMISSIONER DETERMINES THAT A PERSON IS LIABLE FOR ANY TAX, PENALTY OR INTEREST UNDER THIS ARTICLE PURSUANT TO SUBSECTION (B) OF SECTION EIGHT HUNDRED FIFTY-FOUR OF THIS ARTICLE, UPON REQUEST IN WRITING OF SUCH PERSON, THE COMMISSIONER SHALL DISCLOSE IN WRITING TO SUCH PERSON (1) THE NAME OF ANY OTHER PERSON THE COMMISSIONER S. 7509--C 58 A. 9509--C HAS DETERMINED TO BE LIABLE FOR SUCH TAX, PENALTY OR INTEREST UNDER THIS ARTICLE FOR THE ELECTING EMPLOYER, AND (2) WHETHER THE COMMISSIONER HAS ATTEMPTED TO COLLECT SUCH TAX, PENALTY OR INTEREST FROM SUCH OTHER PERSON OR ELECTING EMPLOYER, THE GENERAL NATURE OF SUCH COLLECTION ACTIVITIES, AND THE AMOUNT COLLECTED. (C) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER MAY REQUIRE THAT ALL FILINGS OF FORMS OR RETURNS UNDER THIS ARTICLE MUST BE FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE PAID ELECTRON- ICALLY. THE COMMISSIONER MAY PRESCRIBE THE METHODS FOR QUARTERLY FILINGS BY ELECTING EMPLOYERS, INCLUDING BUT NOT LIMITED TO, THE INCLU- SION OF SPECIFIC EMPLOYEE-LEVEL DETAIL. § 2. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) ARTICLE TWENTY-FOUR EMPLOYEE CREDIT. A COVERED EMPLOYEE OF AN ELECTING EMPLOYER SHALL BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AS PROVIDED IN THIS SUBSECTION. FOR PURPOSES OF THIS SUBSECTION THE TERMS "COVERED EMPLOYEE" AND "ELECTING EMPLOYER" SHALL HAVE THE SAME MEANINGS AS UNDER SECTION EIGHT HUNDRED FIFTY OF THIS CHAPTER. (1) FOR TWO THOUSAND NINETEEN, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE COVERED EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE ELECTING EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) ONE AND ONE-HALF PERCENT AND (III) THE RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. (2) FOR TWO THOUSAND TWENTY, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE COVERED EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE ELECTING EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) THREE PERCENT AND (III) THE RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. (3) FOR TWO THOUSAND TWENTY-ONE AND THERE- AFTER, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE COVERED EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE ELECTING EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) FIVE PERCENT AND (III) THE RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS ALLOWED FOR A TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. § 3. Subdivision 1 of section 171-a of the tax law, as amended by section 15 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows: S. 7509--C 59 A. 9509--C 1. All taxes, interest, penalties and fees collected or received by the commissioner or the commissioner's duly authorized agent under arti- cles nine (except section one hundred eighty-two-a thereof and except as otherwise provided in section two hundred five thereof), nine-A, twelve-A (except as otherwise provided in section two hundred eighty- four-d thereof), thirteen, thirteen-A (except as otherwise provided in section three hundred twelve thereof), eighteen, nineteen, twenty (except as otherwise provided in section four hundred eighty-two there- of), twenty-B, twenty-one, twenty-two, TWENTY-FOUR, twenty-six, twenty- eight (except as otherwise provided in section eleven hundred two or eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise provided in section fourteen hundred twenty-one thereof), thirty-three and thirty-three-A of this chapter shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, to the credit of the comptroller. Such an account may be established in one or more of such depositories. Such deposits shall be kept separate and apart from all other money in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected or received under such articles of this chapter, the comptroller shall retain in the comptroller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such articles of this chapter out of which amount the comptroller shall pay any refunds or reimbursements to which taxpay- ers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursuant to subdivision five of section one hundred seventy-one-d and subdivision six of section one hundred seven- ty-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- 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 S. 7509--C 60 A. 9509--C shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 4. Subdivision 1 of section 171-a of the tax law, as amended by section 16 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows: 1. All taxes, interest, penalties and fees collected or received by the commissioner or the commissioner's duly authorized agent under arti- cles nine (except section one hundred eighty-two-a thereof and except as otherwise provided in section two hundred five thereof), nine-A, twelve-A (except as otherwise provided in section two hundred eighty- four-d thereof), thirteen, thirteen-A (except as otherwise provided in section three hundred twelve thereof), eighteen, nineteen, twenty (except as otherwise provided in section four hundred eighty-two there- of), twenty-one, twenty-two, TWENTY-FOUR, twenty-six, twenty-eight (except as otherwise provided in section eleven hundred two or eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise provided in section fourteen hundred twenty-one thereof), thirty-three and thirty-three-A of this chapter shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, to the credit of the comptroller. Such an account may be established in one or more of such depositories. Such deposits shall be kept separate and 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 S. 7509--C 61 A. 9509--C reimbursements under such articles of this chapter out of which amount the comptroller shall pay any refunds or reimbursements to which taxpay- ers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursuant to subdivision five of section one hundred seventy-one-d and subdivision six of section one hundred seven- ty-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated 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 S. 7509--C 62 A. 9509--C city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 5. Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section 92-z of the state finance law, subdivision 2 as amended by section 30 of part T of chapter 57 of the laws of 2007, and subdivision 3 and para- graph (a) of subdivision 5 as added by section 1 of part I of chapter 383 of the laws of 2001, are amended to read as follows: 2. Such fund shall consist of [twenty-five] (A) FIFTY percent of receipts from the imposition of personal income taxes pursuant to arti- cle twenty-two of the tax law, less such amounts as the commissioner of taxation and finance may determine to be necessary for refunds, AND (B) FIFTY PERCENT OF RECEIPTS FROM THE IMPOSITION OF EMPLOYER COMPENSATION EXPENSE TAXES PURSUANT TO ARTICLE TWENTY-FOUR OF THE TAX LAW, LESS SUCH AMOUNTS AS THE COMMISSIONER OF TAXATION AND FINANCE MAY DETERMINE TO BE NECESSARY FOR REFUNDS. 3. (A) Beginning on the first day of each month, the comptroller shall deposit all of the receipts collected pursuant to section six hundred seventy-one of the tax law in the revenue bond tax fund until the amount of monthly receipts anticipated to be deposited pursuant to the certif- icate required in paragraph (b) of subdivision five of this section are met. On or before the twelfth day of each month, the commissioner of taxation and finance shall certify to the state comptroller the amounts specified in PARAGRAPH (A) OF subdivision two of this section relating to the preceding month and, in addition, no later than March thirty- first of each fiscal year the commissioner of taxation and finance shall certify such amounts relating to the last month of such fiscal year. The amounts so certified shall be deposited by the state comptroller in the revenue bond tax fund. (B) BEGINNING ON THE FIRST DAY OF EACH MONTH, THE COMPTROLLER SHALL DEPOSIT ALL OF THE RECEIPTS COLLECTED PURSUANT TO SECTION EIGHT HUNDRED FIFTY-FOUR OF THE TAX LAW IN THE REVENUE BOND TAX FUND UNTIL THE AMOUNT OF MONTHLY RECEIPTS ANTICIPATED TO BE DEPOSITED PURSUANT TO THE CERTIF- ICATE REQUIRED IN PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION ARE MET. ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNTS SPECIFIED IN PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION RELATING TO THE PRECEDING MONTH AND, IN ADDITION, NO LATER THAN MARCH THIRTY- FIRST OF EACH FISCAL YEAR THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY SUCH AMOUNTS RELATING TO THE LAST MONTH OF SUCH FISCAL YEAR. THE AMOUNTS SO CERTIFIED SHALL BE DEPOSITED BY THE STATE COMPTROLLER IN THE REVENUE BOND TAX FUND. (a) The state comptroller shall from time to time, but in no event later than the fifteenth day of each month (other than the last month of the fiscal year) and no later than the thirty-first day of the last month of each fiscal year, pay over and distribute to the credit of the general fund of the state treasury all moneys in the revenue bond tax fund, if any, in excess of the aggregate amount required to be set aside for the payment of cash requirements pursuant to paragraph (b) of this subdivision, provided that an appropriation has been made to pay all S. 7509--C 63 A. 9509--C amounts specified in any certificate or certificates delivered by the director of the budget pursuant to paragraph (b) of this subdivision as being required by each authorized issuer as such term is defined in section sixty-eight-a of this chapter for the payment of cash require- ments of such issuers for such fiscal year. Subject to the rights of holders of debt of the state, in no event shall the state comptroller pay over and distribute any moneys on deposit in the revenue bond tax fund to any person other than an authorized issuer pursuant to such certificate or certificates (i) unless and until the aggregate of all cash requirements certified to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for such fiscal year shall have been appropriated to such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or (ii) if, after having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made to the authorized issuers which was required to have been made pursuant to such certificate or certificates; provided, however, that no person, including such authorized issuers or the holders of revenue bonds, shall have any lien on moneys on deposit in the revenue bond tax fund. Any agreement entered into pursuant to section sixty- eight-c of this chapter related to any payment authorized by this section shall be executory only to the extent of such revenues available to the state in such fund. Notwithstanding subdivisions two and three of this section, in the event the aggregate of all cash requirements certi- fied to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for the fiscal year beginning on April first shall not have been appropriated to such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or, (ii) if, having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made pursuant to such certificate or certificates, all receipts collected pursuant to section six hundred seventy-one of the tax law AND SECTION EIGHT HUNDRED FIFTY-FOUR OF THE TAX LAW shall be deposited in the reven- ue bond tax fund until the greater of [twenty-five] FORTY percent of the AGGREGATE OF THE receipts from the imposition of (A) the personal income tax imposed by article twenty-two of the tax law AND (B) THE EMPLOYER COMPENSATION EXPENSE TAX IMPOSED BY ARTICLE TWENTY-FOUR OF THE TAX LAW for the fiscal year beginning on April first and as specified in the certificate or certificates filed by the director of the budget pursuant to this paragraph or [six] A TOTAL OF TWELVE billion dollars has been deposited in the revenue bond tax fund. Notwithstanding any other provision of law, if the state has appropriated and paid to the author- ized issuers the amounts necessary for the authorized issuers to meet their requirements for the current fiscal year pursuant to the certif- icate or certificates submitted by the director of the budget pursuant to paragraph (b) of this section, the state comptroller shall, on the last day of each fiscal year, pay to the general fund of the state all sums remaining in the revenue bond tax fund on such date except such amounts as the director of the budget may certify are needed to meet the cash requirements of authorized issuers during the subsequent fiscal year. § 6. Subdivision 5 of section 68-c of the state finance law, as added by section 2 of part I of chapter 383 of the laws of 2001, is amended to read as follows: S. 7509--C 64 A. 9509--C 5. Nothing contained in this article shall be deemed to restrict the right of the state to amend, repeal, modify or otherwise alter statutes imposing or relating to the taxes imposed pursuant to article twenty-two AND ARTICLE TWENTY-FOUR of the tax law. The authorized issuers shall not include within any resolution, contract or agreement with holders of the revenue bonds issued under this article any provision which provides that a default occurs as a result of the state exercising its right to amend, repeal, modify or otherwise alter the taxes imposed pursuant to article twenty-two AND ARTICLE TWENTY-FOUR of the tax law. § 7. This act shall take effect immediately; provided, however, that the amendments to subdivision 1 of section 171-a of the tax law made by section three of this act shall not affect the expiration of such subdi- vision and shall expire therewith, when upon such date the provisions of section four of this act shall take effect. PART NN Section 1. The opening paragraph of subdivision 7 of section 221 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part SS of chapter 59 of the laws of 2017, is amended to read as follows: 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 [seventeen] EIGHTEEN 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 twenty. In the cases of multiple ownerships and limited racing appearances, the fund shall equitably adjust the sum required. § 2. Paragraph (a) of subdivision 9 of section 208 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part PP of chapter 60 of the laws of 2016, is amended to read as follows: (a) The franchised corporation shall maintain a separate account for all funds held on deposit in trust by the corporation for individual horsemen's accounts. Purse funds shall be paid by the corporation as required to meet its purse payment obligations. Funds held in horsemen's accounts shall only be released or applied as requested and directed by S. 7509--C 65 A. 9509--C the individual horseman. For two thousand [sixteen] EIGHTEEN the New York Jockey Injury Compensation Fund, Inc. may use up to two million dollars from the account established pursuant to this subdivision to pay the annual costs required by section two hundred twenty-one of this article. § 3. Paragraph (c) of subdivision 9 of section 208 of the racing, pari-mutuel wagering and breeding law is relettered paragraph (e) and two new paragraphs (c) and (d) are added to read as follows: (C) THE FRANCHISED CORPORATION SHALL ESTABLISH AND MAINTAIN A SEPARATE ACCOUNT FOR FUNDS TO BE HELD ON DEPOSIT IN TRUST BY THE FRANCHISED CORPORATION FOR THE HORSEMEN'S ORGANIZATION RECOGNIZED PURSUANT TO SECTION TWO HUNDRED TWENTY-EIGHT OF THIS ARTICLE. STARTING IN TWO THOU- SAND EIGHTEEN AND ANNUALLY THEREAFTER, FUNDS FROM THE ACCOUNT ESTAB- LISHED PURSUANT TO THIS SUBDIVISION SHALL BE DEPOSITED IN THE SEPARATE ACCOUNT ESTABLISHED UNDER THIS PARAGRAPH IN AN AMOUNT TO BE AGREED UPON BY THE FRANCHISED CORPORATION AND THE HORSEMEN'S ORGANIZATION RECOGNIZED PURSUANT TO SECTION TWO HUNDRED TWENTY-EIGHT OF THIS ARTICLE. FUNDS HELD IN THIS ACCOUNT SHALL BE USED BY SUCH RECOGNIZED HORSEMEN'S ORGANIZATION SOLELY AS COLLATERAL TO SECURE WORKERS' COMPENSATION INSURANCE COVERAGE, INCLUDING THROUGH THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC. SUCH COVERAGE SHALL INCLUDE HIGH DEDUCTIBLE PROGRAMS AND FORMS OF SELF- INSURANCE. (D) IN THE EVENT THE HORSEMEN'S ORGANIZATION RECOGNIZED PURSUANT TO SECTION TWO HUNDRED TWENTY-EIGHT OF THIS ARTICLE DETERMINES THAT THE FUNDS ARE NO LONGER NEEDED AS COLLATERAL TO SECURE WORKERS' COMPENSATION INSURANCE COVERAGE, THEN, UPON AGREEMENT BY THE FRANCHISED CORPORATION AND SUCH APPROPRIATELY RECOGNIZED HORSEMEN'S ORGANIZATION, FUNDS IN THE SEPARATE ACCOUNT ESTABLISHED UNDER PARAGRAPH (C) OF THIS SUBDIVISION SHALL BE RETURNED TO THE ACCOUNT ESTABLISHED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION. § 4. This act shall take effect immediately. PART OO Section 1. Subdivision 2 of section 516 of the racing, pari-mutuel wagering and breeding law is amended and a new subdivision 2-a is added to read as follows: 2. After payment of all of the costs of the corporation's functions, net revenue remaining to the corporation shall be divided[, quarterly, not more than thirty days after the close of the calendar quarter,] among the participating counties in accordance with the following provisions: a. Fifty percent of such revenue distributed among the participating counties on the basis of the proportion of the total off-track pari-mu- tuel wagering accepted by the corporation during the previous [calendar quarter] PERIOD that originated in the branch offices located in each participating county; b. Fifty percent of such revenue on the basis of population, as defined as the total population in each participating county shown by the latest preceding decennial federal census completed and published as a final population count by the United States bureau of the census preceding the commencement of the calendar year in which such distrib- ution is to be made; and c. A participating county containing a city electing to participate in the management and revenues of a corporation under subdivision two of section five hundred two of this article shall distribute revenue S. 7509--C 66 A. 9509--C received under paragraphs a and b of this subdivision to such city according to the proportion such city's population bears to the county's population. 2-A. THE NET REVENUE REMAINING TO THE CORPORATION SHALL BE DISTRIBUTED QUARTERLY, NOT MORE THAN THIRTY DAYS AFTER THE CLOSE OF THE CALENDAR QUARTER, UNLESS, EACH OFF-TRACK BETTING CORPORATION'S BOARD SHALL DETER- MINE ONCE ANNUALLY, THAT SUCH NET REVENUE REMAINING TO THE CORPORATION SHALL BE DISTRIBUTED TO PARTICIPATING COUNTIES AND CITIES ON AN ANNUAL, OR BI-ANNUAL BASIS, TO BE DISTRIBUTED NOT MORE THAN THIRTY DAYS AFTER THE CLOSE OF THE CALENDAR YEAR, OR THE CLOSE OF THE BI-ANNUAL YEAR (JANUARY-JUNE AND JULY-DECEMBER). NO SUCH DETERMINATION SHALL BE MADE PRIOR TO THE BOARD'S RECEIPT OF AN ANNUAL WRITTEN APPROVAL, TO SUCH SPECIFIED ANNUAL, OR BI-ANNUAL PAYMENT SCHEDULE, BETWEEN EACH OFF-TRACK BETTING CORPORATION AND THE GOVERNING BODIES OF EACH PARTICIPATING COUN- TIES AND CITIES WITHIN SUCH APPLICABLE REGION. § 2. This act shall take effect immediately. PART PP Section 1. Subdivision 1 of section 22 of the public housing law, as added by section 1 of part CC of chapter 63 of the laws of 2000, is amended to read as follows: 1. A taxpayer subject to tax under article nine-A, twenty-two, [thir- ty-two] or thirty-three of the tax law which owns an interest in one or more eligible low-income buildings, OR A TRANSFEREE OF SUCH A TAXPAYER AS DESCRIBED IN SUBDIVISION EIGHT OF THIS SECTION, shall be allowed a credit against such tax for the amount of low-income housing credit allocated by the commissioner to each such building. Except as provided in subdivision two of this section, the credit amount so allocated shall be allowed as a credit against the tax for the ten taxable years in the credit period. § 2. Section 22 of the public housing law is amended by adding a new subdivision 8 to read as follows: 8. (A) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS ARTICLE MAY TRANS- FER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY, WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITHOUT REGARD TO HOW ANY FEDER- AL LOW-INCOME HOUSING TAX CREDIT WITH RESPECT TO THE LOW-INCOME BUILDING MAY BE ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER PERSON OR ENTITY OWNS NO INTEREST IN THE ELIGIBLE LOW-INCOME BUILDING OR IN AN ENTITY WITH AN OWNERSHIP INTEREST IN THE ELIGIBLE LOW-INCOME BUILDING. TRANS- FEREES SHALL BE ENTITLED TO APPLY TRANSFERRED CREDIT TO A TAX IMPOSED UNDER ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE OF THE TAX LAW, PROVIDED ALL REQUIREMENTS FOR CLAIMING THE CREDIT ARE MET. A TRANSFEREE MAY NOT TRANSFER ANY CREDIT, OR PORTION THEREOF, ACQUIRED BY TRANSFER. (B) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS ARTICLE MUST ENTER INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE TRANSFER CONTRACT MUST SPECIFY (I) THE BUILDING IDENTIFICATION NUMBERS FOR ALL BUILDINGS IN THE PROJECT; (II) THE DATE EACH BUILDING WAS PLACED INTO SERVICE; (III) THE FIFTEEN YEAR COMPLIANCE PERIOD FOR THE PROJECT; (IV) THE SCHEDULE OF YEARS FOR WHICH THE TRANSFER CREDIT MAY BE CLAIMED AND THE AMOUNT OF CREDIT PREVIOUSLY CLAIMED; (V) THE AMOUNT OF CONSIDERATION RECEIVED BY THE TAXPAYER FOR THE TRANSFER CREDIT; AND (VI) THE AMOUNT OF CREDIT BEING TRANSFERRED. S. 7509--C 67 A. 9509--C (C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED- IT PURSUANT TO THIS ARTICLE AND SEEKING TO TRANSFER THE CREDIT FILES A TRANSFER STATEMENT WITH THE COMMISSIONER PRIOR TO THE TRANSFER AND THE COMMISSIONER APPROVES SUCH TRANSFER. THE TRANSFER STATEMENT SHALL PROVIDE THE NAME AND FEDERAL IDENTIFICATION NUMBERS OF THE FILING TRANSFEROR AND THE TAXPAYER TO WHOM THE FILING TRANSFEROR TRANSFERRED THE CREDIT, AND THE AMOUNT OF CREDIT TRANSFERRED TO EACH SUCH PERSON OR ENTITY. A COPY OF THE TRANSFER CONTRACT SHALL BE ATTACHED TO THE TRANS- FER STATEMENT. THE STATEMENT SHALL ALSO CONTAIN SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. AFTER REVIEWING THE TRANSFER CONTRACT AND THE TRANSFER STATEMENT, THE COMMISSIONER SHALL APPROVE OR DENY THE TRANSFER AS PROVIDED IN THIS SUBDIVISION. IF THE COMMISSIONER APPROVES THE TRANSFER, THE COMMISSIONER SHALL ISSUE AN APPROVAL STATEMENT THAT PROVIDES THE NAME OF THE TRANSFEROR AND TRANSFEREE, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFORMATION AS THE COMMISSIONER AND THE COMMISSIONER OF TAXATION AND FINANCE DEEM NECESSARY. A COPY OF THE COMMISSIONER'S APPROVAL STATEMENT MUST BE ATTACHED TO THE TRANSFEREE'S TAX RETURN. IF THE COMMISSIONER DENIES THE TRANSFER, THE COMMISSIONER SHALL PROVIDE THE TAXPAYER A WRITTEN DETERMINATION FOR SUCH DENIAL. THE COMMISSIONER, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE, MAY ESTABLISH SUCH OTHER PROCEDURES AND STANDARDS DEEMED NECES- SARY FOR THE TRANSFERABILITY OF THE LOW-INCOME HOUSING CREDIT. (D) THE COMMISSIONER SHALL FORWARD COPIES OF ALL TRANSFER STATEMENTS AND ATTACHMENTS THERETO AND APPROVAL STATEMENTS TO THE DEPARTMENT OF TAXATION AND FINANCE WITHIN THIRTY DAYS AFTER THE TRANSFER IS APPROVED BY THE COMMISSIONER. § 3. Section 25 of the public housing law is amended by adding a new subdivision 3 to read as follows: 3. THE ALLOCATION OF THE CREDIT ESTABLISHED BY THIS ARTICLE MAY BE MADE WITHOUT REGARD TO AND IN A SEPARATE MANNER FROM ANY FEDERAL LOW-IN- COME HOUSING CREDIT THAT MAY BE ALLOCATED WITH RESPECT TO AN ELIGIBLE LOW-INCOME BUILDING. § 4. Subdivision (b) of section 18 of the tax law is amended by adding a new paragraph 6-a to read as follows: (6-A) THE TAXPAYER THAT ORIGINALLY RECEIVED THE CREDIT SHALL REMAIN SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY- ER WITH RESPECT TO THE CREDIT, NONE OF WHICH SHALL APPLY TO A PARTY TO WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANSFERRED. § 5. Section 23 of the public housing law, as added by section 1 of part CC of chapter 63 of the laws of 2000, is amended to read as follows: § 23. Project monitoring. The commissioner shall establish such proce- dures [as he deems] DEEMED necessary for monitoring compliance of an eligible low-income building with the provisions of this article, and for notifying the commissioner of taxation and finance of any such noncompliance [of which he becomes aware]. § 6. This act shall take effect on the thirtieth day after it shall have become a law and shall apply to taxable years beginning on or after January 1, 2019 for buildings that receive an allocation of low-income housing credit on or after the effective date of this act. PART QQ Section 1. Paragraph 1 of subsection (a) of section 1301 of the tax law, as amended by section 2 of part F of chapter 61 of the laws of 2017, is amended to read as follows: S. 7509--C 68 A. 9509--C (1) a tax on the personal income of residents of such city, at the rates provided for under subsection (a) of section thirteen hundred four of this article for taxable years beginning before two thousand [twenty] TWENTY-ONE, and at the rates provided for under subsection (b) of section thirteen hundred four of this article for taxable years begin- ning after two thousand twenty, provided, however, that if, for any taxable year beginning after two thousand twenty, the rates set forth in such subsection (b) are rendered inapplicable and the rates set forth in such subsection (a) are rendered applicable, then the tax for such taxa- ble year shall be at the rates provided under [subparagraph] SUBPARA- GRAPHS (A) of paragraphs one, two and three of such subsection (a), § 2. This act shall take effect immediately. PART RR Section 1. Subparagraph (A) of paragraph 1, paragraph 3 and paragraph 5 of subsection (oo) of section 606 of the tax law, paragraph 3 as amended by chapter 239 of the laws of 2009, and subparagraph (A) of paragraph 1 and paragraph 5 as amended by section 1 of part F of chapter 59 of the laws of 2013, are amended to read as follows: (A) For taxable years beginning on or after January first, two thou- sand ten and before January first, two thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under [subsection (a) (2) of section 47 of the feder- al] internal revenue code SECTION 47(C)(3), DETERMINED WITHOUT REGARD TO RATABLY ALLOCATING THE CREDIT OVER A FIVE YEAR PERIOD AS REQUIRED BY SUBSECTION (A) OF SUCH SECTION 47, with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed five million dollars. For taxable years beginning on or after January first, two thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the amount of credit allowed the taxpayer with respect to a certified historic struc- ture under [subsection (a)(2) of section 47 of the federal] internal revenue code SECTION 47(C)(3), DETERMINED WITHOUT REGARD TO RATABLY ALLOCATING THE CREDIT OVER A FIVE YEAR PERIOD AS REQUIRED BY SUBSECTION (A) OF SUCH SECTION 47, with respect to a certified historic structure located within the state; provided, however, the credit shall not exceed one hundred thousand dollars. (3) If the [credit allowed the] taxpayer IS ALLOWED A CREDIT pursuant to section 47 of the internal revenue code with respect to a qualified rehabilitation THAT IS ALSO THE SUBJECT OF THE CREDIT ALLOWED BY THIS SUBSECTION AND THAT CREDIT PURSUANT TO SUCH SECTION 47 is recaptured pursuant to subsection (a) of section 50 of the internal revenue code, a portion of the credit allowed under this subsection must be added back in the same taxable year and in the same proportion as the federal recapture. (5) To be eligible for the credit allowable under this subsection the rehabilitation project shall be in whole or in part located within a census tract which is identified as being at or below one hundred percent of the state median family income as calculated as of [January] APRIL first of each year using the most recent five year estimate from the American community survey published by the United States Census bureau. IF THERE IS A CHANGE IN THE MOST RECENT FIVE YEAR ESTIMATE, A S. 7509--C 69 A. 9509--C CENSUS TRACT THAT QUALIFIED FOR ELIGIBILITY UNDER THIS PROGRAM BEFORE INFORMATION ABOUT THE CHANGE WAS RELEASED WILL REMAIN ELIGIBLE FOR A CREDIT UNDER THIS SUBSECTION FOR AN ADDITIONAL TWO CALENDAR YEARS. § 2. Paragraphs (a), (c) and (e) of subdivision 26 of section 210-b of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) Application of credit. (i) For taxable years beginning on or after January first, two thousand ten, and before January first, two thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinaft- er provided, against the tax imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer for the same taxable year with respect to a certified historic structure under [subsection (c)(2) of section 47 of the] internal revenue code SECTION 47(C)(3), DETERMINED WITHOUT REGARD TO RATABLY ALLOCATING THE CREDIT OVER A FIVE YEAR PERIOD AS REQUIRED BY SUBSECTION (A) OF SUCH SECTION 47, with respect to a certified historic structure located with- in the state. Provided, however, the credit shall not exceed five million dollars. (ii) For taxable years beginning on or after January first, two thou- sand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as here- inafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the amount of credit allowed the taxpayer for the same taxable year DETERMINED WITHOUT REGARD TO RATABLY ALLOCATING THE CREDIT OVER A FIVE YEAR PERIOD AS REQUIRED BY SUBSECTION (A) OF SECTION 47 OF THE INTERNAL REVENUE CODE, with respect to a certified historic structure under subsection (c)(3) of section 47 of the internal revenue code with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed one hundred thousand dollars. (c) If the [credit allowed the] taxpayer IS ALLOWED A CREDIT pursuant to section 47 of the internal revenue code with respect to a qualified rehabilitation THAT IS ALSO THE SUBJECT OF THE CREDIT ALLOWED BY THIS SUBDIVISION AND THAT CREDIT PURSUANT TO SUCH SECTION 47 is recaptured pursuant to subsection (a) of section 50 of the internal revenue code, a portion of the credit allowed under this [subsection] SUBDIVISION must be added back in the same taxable year and in the same proportion as the federal credit. (e) To be eligible for the credit allowable under this subdivision, the rehabilitation project shall be in whole or in part located within a census tract which is identified as being at or below one hundred percent of the state median family income as calculated as of [January] APRIL first of each year using the most recent five year estimate from the American community survey published by the United States Census bureau. IF THERE IS A CHANGE IN THE MOST RECENT FIVE YEAR ESTIMATE, A CENSUS TRACT THAT QUALIFIED FOR ELIGIBILITY UNDER THIS PROGRAM BEFORE INFORMATION ABOUT THE CHANGE WAS RELEASED WILL REMAIN ELIGIBLE FOR A CREDIT UNDER THIS SUBDIVISION FOR AN ADDITIONAL TWO CALENDAR YEARS. § 3. Subparagraph (A) of paragraph 1, paragraph 3 and paragraph 5 of subdivision (y) of section 1511 of the tax law, paragraph 3 as added by chapter 472 of the laws of 2010 and subparagraph (A) of paragraph 1 and paragraph 5 as amended by section 4 of part F of chapter 59 of the laws of 2013, are amended to read as follows: (A) For taxable years beginning on or after January first, two thou- sand ten and before January first, two thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to one hundred percent S. 7509--C 70 A. 9509--C of the amount of credit allowed the taxpayer with respect to a certified historic structure under [subsection (a)(2) of section 47 of the feder- al] internal revenue code SECTION 47(C)(3), DETERMINED WITHOUT REGARD TO RATABLY ALLOCATING THE CREDIT OVER A FIVE YEAR PERIOD AS REQUIRED BY SUBSECTION (A) OF SUCH SECTION 47, with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed five million dollars. For taxable years beginning on or after January first, two thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the amount of credit allowed the taxpayer with respect to a certified historic struc- ture under [subsection (a)(2) of section 47 of the federal] internal revenue code SECTION 47(C)(3), DETERMINED WITHOUT REGARD TO RATABLY ALLOCATING THE CREDIT OVER A FIVE YEAR PERIOD AS REQUIRED BY SUBSECTION (A) OF SUCH SECTION 47 with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed one hundred thousand dollars. (3) If the [credit allowed the] taxpayer IS ALLOWED A CREDIT pursuant to section 47 of the internal revenue code with respect to a qualified rehabilitation THAT IS ALSO THE SUBJECT OF THE CREDIT ALLOWED BY THIS SUBDIVISION AND THAT CREDIT PURSUANT TO SUCH SECTION 47 is recaptured pursuant to subsection (a) of section 50 of the internal revenue code, a portion of the credit allowed under this [subsection] SUBDIVISION in the taxable year the credit was claimed must be added back in the same taxa- ble year and in the same proportion as the federal recapture. (5) To be eligible for the credit allowable under this subdivision, the rehabilitation project shall be in whole or in part located within a census tract which is identified as being at or below one hundred percent of the state median family income as calculated as of [January] APRIL first of each year using the most recent five year estimate from the American community survey published by the United States Census bureau. IF THERE IS A CHANGE IN THE MOST RECENT FIVE YEAR ESTIMATE, A CENSUS TRACT THAT QUALIFIED FOR ELIGIBILITY UNDER THIS PROGRAM BEFORE INFORMATION ABOUT THE CHANGE WAS RELEASED WILL REMAIN ELIGIBLE FOR A CREDIT UNDER THIS SUBDIVISION FOR AN ADDITIONAL TWO CALENDAR YEARS. § 4. Paragraph 2 of subsection (pp) of section 606 of the tax law, as added by chapter 547 of the laws of 2006, subparagraphs (A) and (B) as amended by section 1 of part V of chapter 59 of the laws of 2013, is amended to read as follows: (2) (A) With respect to any particular residence of a taxpayer, the credit allowed under paragraph one of this subsection shall not exceed fifty thousand dollars for taxable years beginning on or after January first, two thousand ten and before January first, two thousand [twenty] TWENTY-FIVE and twenty-five thousand dollars for taxable years beginning on or after January first, two thousand [twenty] TWENTY-FIVE. In the case of a husband and wife, the amount of the credit shall be divided between them equally or in such other manner as they may both elect. If a taxpayer incurs qualified rehabilitation expenditures in relation to more than one residence in the same year, the total amount of credit allowed under paragraph one of this subsection for all such expenditures shall not exceed fifty thousand dollars for taxable years beginning on or after January first, two thousand ten and before January first, two thousand [twenty] TWENTY-FIVE and twenty-five thousand dollars for taxa- ble years beginning on or after January first, two thousand [twenty] TWENTY-FIVE. S. 7509--C 71 A. 9509--C (B) For taxable years beginning on or after January first, two thou- sand ten and before January first, two thousand [twenty] TWENTY-FIVE, if the amount of credit allowable under this subsection shall exceed the taxpayer's tax for such year, and the taxpayer's New York adjusted gross income for such year does not exceed sixty thousand dollars, 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. If the taxpayer's New York adjusted gross income for such year exceeds sixty thousand dollars, the excess credit that may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years. For taxable years beginning on or after January first, two thousand [twenty] TWENTY-FIVE, if the amount of credit allow- able 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. § 5. This act shall take effect immediately and shall apply to taxable years beginning on and after January first, two thousand eighteen. PART SS Section 1. Section 1303 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows: § 1303. City taxable income. The city taxable income of a city resi- dent individual shall mean and be the same as his OR HER New York taxa- ble income as defined in section six hundred eleven of this chapter, EXCEPT THAT IT SHALL INCLUDE (I) THE AMOUNT CONTRIBUTED TO ANY OR ALL OF THE FOLLOWING ACCOUNTS WITHIN THE CHARITABLE GIFTS TRUST FUND SET FORTH IN SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW, TO THE EXTENT THE AMOUNT IS CLAIMED AS AN ITEMIZED DEDUCTION PURSUANT TO SECTION SIX HUNDRED FIFTEEN OF THIS CHAPTER: THE HEALTH CHARITABLE ACCOUNT ESTAB- LISHED BY PARAGRAPH (A) OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW, OR THE ELEMENTARY AND SECONDARY EDUCATION CHARI- TABLE ACCOUNT ESTABLISHED BY PARAGRAPH B OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW. The city taxable income of a city resident estate or trust shall mean and be the same as its New York taxable income as defined in section six hundred eighteen of this chap- ter. § 2. Subdivision (b) of section 11-1712 of the administrative code of the city of New York is amended by adding a new paragraph 38 to read as follows: (38) THE AMOUNT CONTRIBUTED TO ANY OR ALL OF THE FOLLOWING ACCOUNTS WITHIN THE CHARITABLE GIFTS TRUST FUND SET FORTH IN SECTION NINETY-TWO- GG OF THE STATE FINANCE LAW, TO THE EXTENT THE AMOUNT IS CLAIMED AS AN ITEMIZED DEDUCTION PURSUANT TO SECTION SIX HUNDRED FIFTEEN OF THE TAX LAW: THE HEALTH CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH A OF SUBDI- VISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW, OR THE ELEMENTARY AND SECONDARY EDUCATION CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH B OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW. § 3. This act shall take effect immediately. PART TT S. 7509--C 72 A. 9509--C Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi- sion b of section 1612 of the tax law, as amended by chapter 236 of the laws of 2017, 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 gaming commission, 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 nineteen 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 conven- tion and exhibition space requiring a minimum capital investment of three hundred million dollars. Except for tracks having less than one thousand nine hundred video gaming machines, and except for a vendor track located west of State Route 14 from Sodus Point to the Pennsylva- nia border within New York, and except for Aqueduct racetrack each track operator shall be required to co-invest 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 period may be carried over into subse- quent years ending before April first, two thousand [eighteen] NINETEEN. Any amount attributable to a capital expenditure approved prior to April first, two thousand [eighteen] NINETEEN and completed before April first, two thousand [twenty] TWENTY-ONE; or approved prior to April first, two thousand [twenty-two] TWENTY-THREE and completed before April first, two thousand [twenty-four] TWENTY-FIVE for a vendor track located west of State Route 14 from Sodus Point to the Pennsylvania border with- in 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 gaming commission prior to April first, two thousand [eighteen] NINETEEN and completed prior to April first, two thousand [twenty] TWENTY-ONE, exceed the vendor track's cumulative capital award during the five year period ending April first, two thousand [eighteen] NINETEEN, the vendor shall continue to receive the capital award after April first, two thou- S. 7509--C 73 A. 9509--C sand [eighteen] NINETEEN 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 capi- tal 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 depre- ciation of the capital improvement in accordance with generally 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 thou- sand [eighteen] NINETEEN shall be deposited into the state lottery fund for education aid; and § 2. This act shall take effect immediately. PART UU Section 1. Section 399-1 of the vehicle and traffic law, as amended by section 1 of part D of chapter 58 of the laws of 2016, is amended to read as follows: § 399-l. Application. Applicants for participation in the pilot program established pursuant to this article shall be among those acci- dent prevention course sponsoring agencies that have a course approved by the commissioner pursuant to article twelve-B of this title prior to the effective date of this article and which deliver such course to the public. Provided, however, the commissioner may, in his or her discretion, approve applications after such date. In order to be approved for participation in such pilot program, the course must comply with the provisions of law, rules and regulations applicable thereto. The commissioner may, in his or her discretion, impose a fee for the submission of each application to participate in the pilot program established pursuant to this article. Such fee shall not exceed seven thousand five hundred dollars. [The proceeds from such fee shall be deposited by the comptroller into the special obligation reserve and payment account of the dedicated highway and bridge trust fund estab- lished pursuant to section eighty-nine-b of the state finance law for the purposes established in this section.] § 2. Paragraph a of subdivision 5 of section 410 of the vehicle and traffic law, as amended by section 4 of part D of chapter 58 of the laws of 2016, is amended to read as follows: a. The annual fee for registration or reregistration of a motorcycle shall be eleven dollars and fifty cents. Beginning April first, nine- teen hundred ninety-eight the annual fee for registration or reregistra- tion of a motorcycle shall be seventeen dollars and fifty cents[, of which two dollars and fifty cents shall be deposited by the comptroller into the special obligation reserve and payment account of the dedicated highway and bridge trust fund established pursuant to section eighty- nine-b of the state finance law for the purposes established in this section]. § 3. Paragraph (c-1) of subdivision 2 of section 503 of the vehicle and traffic law, as amended by section 5 of part D of chapter 58 of the laws of 2016, is amended to read as follows: (c-1) In addition to the fees established in paragraphs (b) and (c) of this subdivision, a fee of fifty cents for each six months or portion thereof of the period of validity shall be paid upon the issuance of any permit, license or renewal of a license which is valid for the operation S. 7509--C 74 A. 9509--C of a motorcycle, except a limited use motorcycle. [Fees collected pursu- ant to this paragraph shall be deposited by the comptroller into the special obligation reserve and payment account of the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law for the purposes established in this section.] § 4. Subdivision 5 of section 317 of the vehicle and traffic law is REPEALED. § 5. Paragraph (b) of subdivision 1-a of section 318 of the vehicle and traffic law, as amended by section 9 of part D of chapter 58 of the laws of 2016, is amended to read as follows: (b) Notwithstanding the provisions of paragraph (a) of this subdivi- sion, an order of suspension issued pursuant to paragraph (a) or (e) of this subdivision may be terminated if the registrant pays to the commis- sioner a civil penalty in the amount of eight dollars for each day up to thirty days for which financial security was not in effect, plus ten dollars for each day from the thirty-first to the sixtieth day for which financial security was not in effect, plus twelve dollars for each day from the sixty-first to the ninetieth day for which financial security was not in effect. [Of each eight dollar penalty, six dollars will be deposited in the general fund and two dollars in the special obligation reserve and payment account of the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law for the purposes established in this section.] Of each ten dollar penalty collected, [six] EIGHT dollars will be deposited in the general fund[, two dollars will be deposited in the special obligation reserve and payment account of the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law for the purposes established in this section,] and two dollars shall be deposited in the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law and the dedi- cated mass transportation fund established pursuant to section eighty- nine-c of the state finance law and distributed according to the provisions of subdivision (d) of section three hundred one-j of the tax law. Of each twelve dollar penalty collected, [six] EIGHT dollars will be deposited into the general fund[, two dollars will be deposited into the special obligation reserve and payment account of the dedicated highway and bridge trust fund established pursuant to section eighty- nine-b of the state finance law for the purposes established in this section,] and four dollars shall be deposited in the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law and the dedicated mass transportation fund estab- lished pursuant to section eighty-nine-c of the state finance law and distributed according to the provisions of subdivision (d) of section three hundred one-j of the tax law. The foregoing provision shall apply only once during any thirty-six month period and only if the registrant surrendered the certificate of registration and number plates to the commissioner not more than ninety days from the date of termination of financial security or submits to the commissioner new proof of financial security which took effect not more than ninety days from the termi- nation of financial security. § 6. Subdivision 6 of section 423-a of the vehicle and traffic law is REPEALED. § 7. Paragraph (a) of subdivision 3 of section 89-b of the state finance law, as amended by section 11 of part D of chapter 58 of the laws of 2016, is amended to read as follows: S. 7509--C 75 A. 9509--C (a) The special obligation reserve and payment account shall consist (i) of all moneys required to be deposited in the dedicated highway and bridge trust fund pursuant to the provisions of sections two hundred five, two hundred eighty-nine-e, three hundred one-j, five hundred fifteen and eleven hundred sixty-seven of the tax law, section four hundred one of the vehicle and traffic law, and section thirty-one of chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all fees, fines or penalties collected by the commissioner of transportation and the commissioner of motor vehicles pursuant to section fifty-two, section three hundred twenty-six, section eighty-eight of the highway law, subdivision fifteen of section three hundred eighty-five[, section four hundred twenty-three-a, section four hundred ten, section three hundred seventeen, section three hundred eighteen, article twelve-C, and paragraph (c-1) of subdivision two of section five hundred three] of the vehicle and traffic law, section two of the chapter of the laws of two thousand three that amended this paragraph, subdivision (d) of section three hundred four-a, paragraph one of subdivision (a) and subdivision (d) of section three hundred five, subdivision six-a of section four hundred fifteen and subdivision (g) of section twenty-one hundred twen- ty-five of the vehicle and traffic law, section fifteen of this chapter, excepting moneys deposited with the state on account of betterments performed pursuant to subdivision twenty-seven or subdivision thirty- five of section ten of the highway law, and [sections ninety-four, one hundred thirty-five, and] SECTION one hundred forty-five of the trans- portation law, (iii) any moneys collected by the department of transpor- tation for services provided pursuant to agreements entered into in accordance with section ninety-nine-r of the general municipal law, and (iv) any other moneys collected therefor or credited or transferred thereto from any other fund, account or source. § 8. Paragraph (a) of subdivision 3 of section 89-b of the state finance law, as amended by section 12 of part D of chapter 58 of the laws of 2016, is amended to read as follows: (a) The special obligation reserve and payment account shall consist (i) of all moneys required to be deposited in the dedicated highway and bridge trust fund pursuant to the provisions of sections two hundred eighty-nine-e, three hundred one-j, five hundred fifteen and eleven hundred sixty-seven of the tax law, section four hundred one of the vehicle and traffic law, and section thirty-one of chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all fees, fines or penalties collected by the commissioner of transportation and the commissioner of motor vehicles pursuant to section fifty-two, section three hundred twenty-six, section eighty-eight of the highway law, subdivision fifteen of section three hundred eighty-five[, section four hundred twenty-three-a, section four hundred ten, section three hundred seventeen, section three hundred eighteen, article twelve-C, and para- graph (c-1) of subdivision two of section five hundred three] of the vehicle and traffic law, section fifteen of this chapter, excepting moneys deposited with the state on account of betterments performed pursuant to subdivision twenty-seven or subdivision thirty-five of section ten of the highway law, and [sections ninety-four, one hundred thirty-five, and] SECTION one hundred forty-five of the transportation law, (iii) any moneys collected by the department of transportation for services provided pursuant to agreements entered into in accordance with section ninety-nine-r of the general municipal law, and (iv) any other moneys collected therefor or credited or transferred thereto from any other fund, account or source. S. 7509--C 76 A. 9509--C § 9. Subdivision 4 of section 94 of the transportation law is REPEALED. § 10. Subdivision 4 of section 135 of the transportation law, as amended by section 4 of part C of chapter 57 of the laws of 2014, is amended to read as follows: 4. [All revenues collected pursuant to this section shall be deposited by the comptroller into the special obligation reserve and payment account of the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b of the state finance law for the purposes established in this section.] Fees will be based on revenues from the preceding calendar year and shall be assessed on or before July first and are payable by September first of each year. On or before January first of each year following assessment of fees pursuant to this section, the commissioner shall report to the railroad companies annual costs associated with this assessment. § 11. Subsection (b) of section 805 of the tax law, as amended by section 1 of part C of chapter 25 of the laws of 2009, is amended to read as follows: (b) On or before the twelfth and twenty-sixth day of each succeeding month, after reserving such amount for such refunds and deducting such amounts for such costs, as provided for in subsection (a) of this section, the commissioner shall certify to the comptroller the amount of all revenues so received during the prior month as a result of the taxes, interest and penalties so imposed. The amount of revenues so certified shall be paid over by the fifteenth and the final business day of each succeeding month from such account WITHOUT APPROPRIATION into the [mobility tax trust account of the metropolitan transportation authority financial assistance fund established pursuant to section ninety-two-ff of the state finance law, for payment, pursuant to appro- priations by the legislature to the] metropolitan transportation author- ity finance fund established pursuant to section twelve hundred seven- ty-h of the public authorities law, PROVIDED, HOWEVER, THAT THE COMPTROLLER SHALL ENSURE THAT ANY PAYMENTS TO THE METROPOLITAN TRANSPOR- TATION AUTHORITY FINANCE FUND WHICH ARE DUE TO BE PAID BY THE FINAL BUSINESS DAY IN THE MONTH OF DECEMBER PURSUANT TO THIS SUBSECTION SHALL BE RECEIVED BY THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND ON THE SAME BUSINESS DAY IN WHICH IT IS PAID. § 12. Section 4 of the state finance law is amended by adding a new subdivision 12 to read as follows: 12. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION AND ANY OTHER LAW TO THE CONTRARY, THE REVENUE (INCLUDING TAXES, INTEREST AND PENALTIES) FROM THE METROPOLITAN COMMUTER TRANSPORTATION MOBILITY TAX IMPOSED PURSUANT TO ARTICLE TWENTY-THREE OF THE TAX LAW WHICH ARE PAID IN ACCORDANCE WITH SUBSECTION (B) OF SECTION EIGHT HUNDRED FIVE OF THE TAX LAW INTO THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND ESTAB- LISHED BY SECTION TWELVE HUNDRED SEVENTY-H OF THE PUBLIC AUTHORITIES LAW SHALL BE MADE PURSUANT TO STATUTE BUT WITHOUT AN APPROPRIATION. § 13. Subdivision 2 of section 1270-h of the public authorities law, as added by section 16 of part H of chapter 25 of the laws of 2009, is amended to read as follows: 2. The comptroller shall deposit INTO THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND (A) monthly, pursuant to appropriation, [into the metropolitan transportation authority finance fund] the moneys deposited in the mobility tax trust account of the metropolitan transportation authority financial assistance fund pursuant to [article twenty-three of the tax law, and] any [other] provision of law directing or permitting S. 7509--C 77 A. 9509--C the deposit of moneys in such fund, AND (B) WITHOUT APPROPRIATION, THE REVENUE INCLUDING TAXES, INTEREST AND PENALTIES COLLECTED IN ACCORDANCE WITH ARTICLE TWENTY-THREE OF THE TAX LAW. § 14. Subdivisions 3 and 5 of section 92-ff of the state finance law, as added by section 1 of part G of chapter 25 of the laws of 2009, are amended to read as follows: 3. Such fund shall consist of all moneys collected [therefore] THERE- FOR or credited or transferred thereto from any other fund, account or source, including, without limitation, the [revenues derived from the metropolitan commuter transportation mobility tax imposed by article twenty-three of the tax law;] revenues derived from the special supple- mental tax on passenger car rentals imposed by section eleven hundred sixty-six-a of the tax law; revenues derived from the transportation surcharge imposed by article twenty-nine-A of the tax law; the supple- mental registration fees imposed by article seventeen-C of the vehicle and traffic law; and the supplemental metropolitan commuter transporta- tion district license fees imposed by section five hundred three of the vehicle and traffic law. Any interest received by the comptroller on moneys on deposit in the metropolitan transportation authority financial assistance fund shall be retained in and become a part of such fund. 5. (a) The "mobility tax trust account" shall consist of [revenues required to be deposited therein pursuant to the provisions of article twenty-three of the tax law and all other] moneys credited or trans- ferred thereto from any [other] fund or source pursuant to law. (b) Moneys in the "mobility tax trust account" shall, pursuant to appropriation by the legislature, be transferred on a monthly basis to the metropolitan transportation authority finance fund established by section twelve hundred seventy-h of the public authorities law and utilized in accordance with said section. It is the intent of the legis- lature to enact two appropriations from the mobility tax trust account to the metropolitan transportation authority finance fund established by section twelve hundred seventy-h of the public authorities law. One such appropriation shall be equal to the amounts expected to be available [for such purpose pursuant to article twenty-three of the tax law or] from any [other] monies described in paragraph (a) of this subdivision during the two thousand [nine] EIGHTEEN--two thousand [ten] NINETEEN fiscal year and shall be effective in that fiscal year. The other such appropriation shall be equal to the amounts expected to be available [for such purpose pursuant to article twenty-three of the tax law or] from any [other] monies described in paragraph (a) of this subdivision during the two thousand [ten] NINETEEN--two thousand [eleven] TWENTY fiscal year and shall, notwithstanding the provisions of section forty of this chapter, take effect on the first day of the two thousand [ten] NINETEEN--two thousand [eleven] TWENTY fiscal year and lapse on the last day of that fiscal year. It is the intent of the governor to submit and the legislature to enact for each fiscal year after the two thousand [nine] EIGHTEEN--two thousand [ten] NINETEEN fiscal year in an annual budget bill: (i) an appropriation for the amount expected to be avail- able in the mobility tax trust account during such fiscal year for the metropolitan transportation authority [pursuant to article twenty-three of the tax law or] FROM any [other] monies described in paragraph (a) of this subdivision; and (ii) an appropriation for the amount projected by the director of the budget to be deposited in the mobility tax trust account [pursuant to article twenty-three of the tax law or] from any [other] monies described in paragraph (a) of this subdivision for the next succeeding fiscal year. Such appropriation for payment of revenues S. 7509--C 78 A. 9509--C projected to be deposited in the succeeding fiscal year shall, notwith- standing the provisions of section forty of this chapter, take effect on the first day of such succeeding fiscal year and lapse on the last day of such fiscal year. If for any fiscal year commencing on or after the first day of April, two thousand ten the governor fails to submit a budget bill containing the foregoing, or the legislature fails to enact a bill with such provisions, then the metropolitan transportation authority shall notify the comptroller, the director of the budget, the chairperson of the senate finance committee and the chairperson of the assembly ways and means committee of amounts required to be disbursed from the appropriation made during the preceding fiscal year for payment in such fiscal year. In no event shall the comptroller make any payments from such appropriation prior to May first of such fiscal year, and unless and until the director of the budget, the chairperson of the senate finance committee and the chairperson of the assembly ways and means committee have been notified of the required payments and the timing of such payments to be made from the mobility tax trust account to the metropolitan transportation authority finance fund established by section twelve hundred seventy-h of the public authorities law at least forty-eight hours prior to any such payments. Until such time as payments pursuant to such appropriation are made in full, revenues in the mobility tax trust account shall not be paid over to any person other than the metropolitan transportation authority. § 15. This act shall take effect April 1, 2018; provided however, that the amendments to section 399-l of the vehicle and traffic law made by section one of this act shall not affect the repeal of such section and shall be deemed repealed therewith; and provided further, however, that the amendments to paragraph (a) of subdivision 3 of section 89-b of the state finance law made by section seven of this act shall be subject to the expiration and reversion of such paragraph pursuant to section 13 of part U1 of chapter 62 of the laws of 2003, as amended, when upon such date the provisions of section eight of this act shall take effect. PART VV Section 1. This act commits the state of New York (state) and the city of New York (city) to fund, $836,000,000 in capital and operating costs related to projects contained in the Metropolitan Transportation Author- ity (MTA) New York city subway action plan. The state share of $418,000,000 shall consist of appropriations first enacted in the 2018- 2019 state budget, additional funds and tax remissions sufficient for the MTA to pay the capital and operating costs as provided as part of the New York city subway action plan. The city share of $418,000,000 is to be provided by the city for the MTA to pay the capital and operating costs as provided in the New York city subway action plan. § 2. (a) The state share of funds provided pursuant to section one of this act shall be scheduled and paid to the MTA no later than as follows: $46,444,444.44 no later than the end of April 2018, $46,444,444.44 no later than the end of May 2018, $46,444,444.44 no later than the end of June 2018, $46,444,444.44 no later than the end of July 2018, $46,444,444.44 no later than the end of August 2018, $46,444,444.44 no later than the end of September 2018, $46,444,444.44 no later than the end of October 2018, $46,444,444.44 no later than the end of November 2018, and $46,444,444.48 no later than the end of Decem- ber 2018. S. 7509--C 79 A. 9509--C (b) The city share of funds provided pursuant to section one of this act shall be scheduled and paid to the MTA no later than as follows: $69,666,666.66 on the first of July 2018; $69,666,666.66 on the first of August 2018; $69,666,666.66 on the first of September 2018; $69,666,666.66 on the first of October 2018; $69,666,666.66 on the first of November 2018; and, $69,666,666.70 on the last day of December 2018. The city shall, no later than seven days after making each payment pursuant to this subdivision, certify to the state comptroller and the New York state director of budget the amount of the payment and the date upon which such payment was made. § 3. No funds dedicated to the New York city subway action plan by either the city or the state shall be used to reduce or supplant the commitment by the city and state to provide funding for any current or future commitment to the MTA. § 4. (a) Notwithstanding any provision of law to the contrary, in the event the city fails to certify to the state comptroller and the New York state director of budget that the city has paid in full any payment required by subdivision (b) of section two of this act, the New York state director of the budget shall direct the comptroller to transfer, collect, or deposit funds in accordance with subdivision (b) of this section in an amount equal to the unpaid balance of any payment required by subdivision (b) of section two of this act, provided that in no event shall such amount exceed $418,000,000. Such direction shall be pursuant to a written plan or plans filed with the comptroller, the chairman of the senate finance committee and the chairman of the assembly ways and means committee. (b) Notwithstanding any provision of law to the contrary and as set forth in a plan or plans submitted by the New York state director of the budget pursuant to subdivision (a) of this section, the comptroller is hereby directed and authorized to: (i) transfer funds authorized by any undisbursed general fund aid to localities appropriations or state special revenue fund aid to localities appropriations, excluding debt service, fiduciary, and federal fund appropriations, to the city to the subway assistance fund established by section 92-gg of the state finance law in accordance with such plan; and/or (ii) collect and deposit into the subway assistance fund established by section 92-gg of the state finance law funds from any other revenue source of the city in accord- ance with such plan. The comptroller is hereby authorized and directed to make such transfers, collections and deposits as soon as practicable but not more than 3 days following the transmittal of such plan to the comptroller in accordance with subdivision (a) of this section. Provided however that in no event shall such deposits exceed $418,000,000, and any such deposits shall be counted against the city share of the New York city subway action plan pursuant to section one of this act. (c) Notwithstanding any provision of law to the contrary, the state's obligation and or liability to fund any program included in general fund aid to localities appropriations or state special revenue fund aid to localities appropriations from which funds are transferred pursuant to subdivision (b) of this section shall be reduced in an amount equal to such transfer or transfers, provided however that in no event shall such amount exceed $418,000,000. § 5. The state finance law is amended by adding a new section 92-gg to read as follows: § 92-GG. SUBWAY ASSISTANCE FUND. 1. THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE SUBWAY ASSISTANCE FUND. S. 7509--C 80 A. 9509--C 2. THE SUBWAY ASSISTANCE FUND SHALL CONSIST OF ANY MONIES DIRECTED THERETO PURSUANT TO THE PROVISIONS OF SECTION FOUR OF PART VV OF THE CHAPTER OF THE LAWS OF TWO THOUSAND EIGHTEEN WHICH ADDED THIS SECTION. 3. ALL MONIES DEPOSITED INTO THE SUBWAY ASSISTANCE FUND PURSUANT TO PART VV OF THE CHAPTER OF THE LAWS OF TWO THOUSAND EIGHTEEN WHICH ADDED THIS SECTION SHALL BE PAID TO THE METROPOLITAN TRANSPORTATION AUTHORITY WITHOUT APPROPRIATION, FOR USE IN THE SAME MANNER AS THE PAYMENTS REQUIRED BY SUBDIVISION (B) OF SECTION TWO OF SUCH PART, AS SOON AS PRACTICABLE BUT NOT MORE THAN FIVE DAYS FROM THE DATE THE COMPTROLLER DETERMINES THAT THE FULL AMOUNT OF THE UNPAID BALANCE OF ANY PAYMENT REQUIRED BY SUBDIVISION (B) OF SECTION TWO OF SUCH PART HAS BEEN DEPOS- ITED INTO THE SUBWAY ASSISTANCE FUND. § 6. This act shall take effect immediately; provided, however, sections one, two and four of this act shall expire and be deemed repealed thirty days after all payments required pursuant to this act shall have been deposited in the manner prescribed by this act. The state of New York and the city of New York shall notify the legislative bill drafting commission upon such final payment provided for in 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. PART WW Section 1. Notwithstanding any other provision of law, the housing trust fund corporation may provide, for purposes of the rural rental assistance program pursuant to article 17-a of the private housing finance law, a sum not to exceed $23,649,000 for the fiscal year ending March 31, 2019. Notwithstanding any other provision of law, and subject to the approval of the New York state director of the budget, the board of directors of the state of New York mortgage agency shall authorize the transfer to the housing trust fund corporation, for the purposes of reimbursing any costs associated with rural rental assistance program contracts authorized by this section, a total sum not to exceed $23,649,000, such transfer to be made from (i) the special account of the mortgage insurance fund created pursuant to section 2429-b of the public authorities law, in an amount not to exceed the actual excess balance in the special account of the mortgage insurance fund, as deter- mined and certified by the state of New York mortgage agency for the fiscal year 2017-2018 in accordance with section 2429-b of the public authorities law, if any, and/or (ii) provided that the reserves in the project pool insurance account of the mortgage insurance fund created pursuant to section 2429-b of the public authorities law are sufficient to attain and maintain the credit rating (as determined by the state of New York mortgage agency) required to accomplish the purposes of such account, the project pool insurance account of the mortgage insurance fund, such transfer to be made as soon as practicable but no later than June 30, 2018. § 2. Notwithstanding any other provision of law, the housing trust fund corporation may provide, for purposes of the neighborhood preserva- tion program, a sum not to exceed $8,479,000 for the fiscal year ending March 31, 2019. Notwithstanding any other provision of law, and subject to the approval of the New York state director of the budget, the board of directors of the state of New York mortgage agency shall authorize the transfer to the housing trust fund corporation, for the purposes of S. 7509--C 81 A. 9509--C reimbursing any costs associated with neighborhood preservation program contracts authorized by this section, a total sum not to exceed $8,479,000, such transfer to be made from (i) the special account of the mortgage insurance fund created pursuant to section 2429-b of the public authorities law, in an amount not to exceed the actual excess balance in the special account of the mortgage insurance fund, as determined and certified by the state of New York mortgage agency for the fiscal year 2017-2018 in accordance with section 2429-b of the public authorities law, if any, and/or (ii) provided that the reserves in the project pool insurance account of the mortgage insurance fund created pursuant to section 2429-b of the public authorities law are sufficient to attain and maintain the credit rating (as determined by the state of New York mortgage agency) required to accomplish the purposes of such account, the project pool insurance account of the mortgage insurance fund, such transfer to be made as soon as practicable but no later than June 30, 2018. § 3. Notwithstanding any other provision of law, the housing trust fund corporation may provide, for purposes of the rural preservation program, a sum not to exceed $3,539,000 for the fiscal year ending March 31, 2019. Notwithstanding any other provision of law, and subject to the approval of the New York state director of the budget, the board of directors of the state of New York mortgage agency shall authorize the transfer to the housing trust fund corporation, for the purposes of reimbursing any costs associated with rural preservation program contracts authorized by this section, a total sum not to exceed $3,539,000, such transfer to be made from (i) the special account of the mortgage insurance fund created pursuant to section 2429-b of the public authorities law, in an amount not to exceed the actual excess balance in the special account of the mortgage insurance fund, as determined and certified by the state of New York mortgage agency for the fiscal year 2017-2018 in accordance with section 2429-b of the public authorities law, if any, and/or (ii) provided that the reserves in the project pool insurance account of the mortgage insurance fund created pursuant to section 2429-b of the public authorities law are sufficient to attain and maintain the credit rating (as determined by the state of New York mortgage agency) required to accomplish the purposes of such account, the project pool insurance account of the mortgage insurance fund, such transfer to be made as soon as practicable but no later than June 30, 2018. § 4. Notwithstanding any other provision of law, the homeless housing and assistance corporation may provide, for purposes of the New York state supportive housing program, the solutions to end homelessness program or the operational support for AIDS housing program, or to qual- ified grantees under those programs, in accordance with the requirements of those programs, a sum not to exceed $8,333,000 for the fiscal year ending March 31, 2019. The homeless housing and assistance corporation may enter into an agreement with the office of temporary and disability assistance to administer such sum in accordance with the requirements of the programs. Notwithstanding any other provision of law, and subject to the approval of the New York state director of the budget, the board of directors of the state of New York mortgage agency shall authorize the transfer to the homeless housing and assistance corporation, a total sum not to exceed $8,333,000, such transfer to be made from (i) the special account of the mortgage insurance fund created pursuant to section 2429-b of the public authorities law, in an amount not to exceed the actual excess balance in the special account of the mortgage insurance S. 7509--C 82 A. 9509--C fund, as determined and certified by the state of New York mortgage agency for the fiscal year 2017-2018 in accordance with section 2429-b of the public authorities law, if any, and/or (ii) provided that the reserves in the project pool insurance account of the mortgage insurance fund created pursuant to section 2429-b of the public authorities law are sufficient to attain and maintain the credit rating (as determined by the state of New York mortgage agency) required to accomplish the purposes of such account, the project pool insurance account of the mortgage insurance fund, such transfer to be made as soon as practicable but no later than March 31, 2019. § 5. Section 12 of part R of chapter 56 of the laws of 2017 relating to utilizing reserves in the mortgage insurance fund for various housing purposes is REPEALED and a new section 12 is added to read as follows: § 12. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE HOMELESS HOUSING AND ASSISTANCE CORPORATION MAY PROVIDE, FOR PURPOSES OF THE NEW YORK STATE SUPPORTIVE HOUSING PROGRAM, THE SOLUTIONS TO END HOMELESSNESS PROGRAM OR THE OPERATIONAL SUPPORT FOR AIDS HOUSING PROGRAM, OR TO QUAL- IFIED GRANTEES UNDER THOSE PROGRAMS, IN ACCORDANCE WITH THE REQUIREMENTS OF THOSE PROGRAMS, A SUM NOT TO EXCEED TWO MILLION DOLLARS FOR THE FISCAL YEAR ENDING MARCH 31, 2019. THE HOMELESS HOUSING AND ASSISTANCE CORPORATION MAY ENTER INTO AN AGREEMENT WITH THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE TO ADMINISTER SUCH SUM IN ACCORDANCE WITH THE REQUIREMENTS OF THE PROGRAMS. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AND SUBJECT TO THE APPROVAL OF THE NEW YORK STATE DIRECTOR OF THE BUDGET, THE BOARD OF DIRECTORS OF THE STATE OF NEW YORK MORTGAGE AGENCY SHALL AUTHORIZE THE TRANSFER TO THE HOMELESS HOUSING AND ASSISTANCE CORPORATION, A TOTAL SUM NOT TO EXCEED TWO MILLION DOLLARS, SUCH TRANS- FER TO BE MADE FROM (I) THE SPECIAL ACCOUNT OF THE MORTGAGE INSURANCE FUND CREATED PURSUANT TO SECTION 2429-B OF THE PUBLIC AUTHORITIES LAW, IN AN AMOUNT NOT TO EXCEED THE ACTUAL EXCESS BALANCE IN THE SPECIAL ACCOUNT OF THE MORTGAGE INSURANCE FUND, AS DETERMINED AND CERTIFIED BY THE STATE OF NEW YORK MORTGAGE AGENCY FOR THE FISCAL YEAR 2016-2017 IN ACCORDANCE WITH SECTION 2429-B OF THE PUBLIC AUTHORITIES LAW, IF ANY, AND/OR (II) PROVIDED THAT THE RESERVES IN THE PROJECT POOL INSURANCE ACCOUNT OF THE MORTGAGE INSURANCE FUND CREATED PURSUANT TO SECTION 2429-B OF THE PUBLIC AUTHORITIES LAW ARE SUFFICIENT TO ATTAIN AND MAIN- TAIN THE CREDIT RATING (AS DETERMINED BY THE STATE OF NEW YORK MORTGAGE AGENCY) REQUIRED TO ACCOMPLISH THE PURPOSES OF SUCH ACCOUNT, THE PROJECT POOL INSURANCE ACCOUNT OF THE MORTGAGE INSURANCE FUND, SUCH TRANSFER TO BE MADE AS SOON AS PRACTICABLE BUT NO LATER THAN MARCH 31, 2019. § 6. Section 13 of part R of chapter 56 of the laws of 2017 relating to utilizing reserves in the mortgage insurance fund for various housing purposes is REPEALED and a new section 13 is added to read as follows: § 13. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AND IN ADDITION TO THE POWERS CURRENTLY AUTHORIZED TO BE EXERCISED BY THE STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY, THE STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY MAY PROVIDE, FOR PURPOSES OF MUNICIPAL RELIEF TO THE CITY OF ALBANY, A SUM NOT TO EXCEED NINE MILLION DOLLARS FOR THE CITY FISCAL YEAR ENDING DECEMBER 31, 2018, TO THE CITY OF ALBANY. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AND SUBJECT TO THE APPROVAL OF THE NEW YORK STATE DIRECTOR OF THE BUDGET, THE STATE OF NEW YORK MORTGAGE AGENCY SHALL TRANSFER TO THE STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY FOR DISTRIBUTION AS MUNICIPAL RELIEF TO THE CITY OF ALBANY, A TOTAL SUM NOT TO EXCEED NINE MILLION DOLLARS, SUCH TRANSFER TO BE MADE FROM (I) THE SPECIAL ACCOUNT OF THE MORTGAGE INSURANCE FUND CREATED PURSUANT TO SECTION 2429-B OF THE PUBLIC AUTHORITIES LAW, IN AN AMOUNT NOT TO EXCEED S. 7509--C 83 A. 9509--C THE ACTUAL EXCESS BALANCE IN THE SPECIAL ACCOUNT OF THE MORTGAGE INSUR- ANCE FUND, AS DETERMINED AND CERTIFIED BY THE STATE OF NEW YORK MORTGAGE AGENCY FOR THE FISCAL YEAR 2017-2018 IN ACCORDANCE WITH SECTION 2429-B OF THE PUBLIC AUTHORITIES LAW, IF ANY, AND/OR (II) PROVIDED THAT THE RESERVES IN THE PROJECT POOL INSURANCE ACCOUNT OF THE MORTGAGE INSURANCE FUND CREATED PURSUANT TO SECTION 2429-B OF THE PUBLIC AUTHORITIES LAW ARE SUFFICIENT TO ATTAIN AND MAINTAIN THE CREDIT RATING (AS DETERMINED BY THE AGENCY) REQUIRED TO ACCOMPLISH THE PURPOSES OF SUCH ACCOUNT, THE PROJECT POOL INSURANCE ACCOUNT OF THE MORTGAGE INSURANCE FUND CREATED PURSUANT TO SECTION 2429-B OF THE PUBLIC AUTHORITIES LAW, SUCH TRANSFER TO BE MADE AS SOON AS PRACTICABLE NO LATER THAN DECEMBER 31, 2018, AND PROVIDED FURTHER THAT THE NEW YORK STATE DIRECTOR OF THE BUDGET MAY REQUEST ADDITIONAL INFORMATION FROM THE CITY OF ALBANY REGARDING THE UTILIZATION OF THESE FUNDS AND THE FINANCES AND OPERATIONS OF THE CITY, AS APPROPRIATE. § 7. This act shall take effect immediately. PART XX Section 1. Subdivisions 9, 10, 11, 12 and 13 of section 140-a of the judiciary law, subdivisions 9 and 11 as amended by chapter 240 of the laws of 2005, subdivision 10 as amended by chapter 209 of the laws of 1990 and subdivision 12 as amended and subdivision 13 as added by chap- ter 690 of the laws of 2007, are amended to read as follows: 9. Ninth district, [twenty-eight] TWENTY-NINE; 10. Tenth district, [forty-seven] FORTY-EIGHT; 11. Eleventh district, [thirty-nine] FORTY; 12. Twelfth district, [twenty-five] TWENTY-SIX; 13. Thirteenth district, [three] FOUR. § 2. This act shall take effect immediately; provided, however, that the additional supreme court judges provided for by section one of this act shall first be elected at the general election to be held in Novem- ber 2018 and shall take office January 1, 2019. PART YY Section 1. Paragraphs (a), (b), (c) and (d) of subdivision 1 of section 131-o of the social services law, as amended by section 1 of part P of chapter 56 of the laws of 2017, are amended to read as follows: (a) in the case of each individual receiving family care, an amount equal to at least [$141.00] $144.00 for each month beginning on or after January first, two thousand [seventeen] EIGHTEEN. (b) in the case of each individual receiving residential care, an amount equal to at least [$163.00] $166.00 for each month beginning on or after January first, two thousand [seventeen] EIGHTEEN. (c) in the case of each individual receiving enhanced residential care, an amount equal to at least [$194.00] $198.00 for each month beginning on or after January first, two thousand [seventeen] EIGHTEEN. (d) for the period commencing January first, two thousand [eighteen] NINETEEN, the monthly personal needs allowance shall be an amount equal to the sum of the amounts set forth in subparagraphs one and two of this paragraph: (1) the amounts specified in paragraphs (a), (b) and (c) of this subdivision; and S. 7509--C 84 A. 9509--C (2) the amount in subparagraph one of this paragraph, multiplied by the percentage of any federal supplemental security income cost of living adjustment which becomes effective on or after January first, two thousand [eighteen] NINETEEN, but prior to June thirtieth, two thousand [eighteen] NINETEEN, rounded to the nearest whole dollar. § 2. Paragraphs (a), (b), (c), (d), (e) and (f) of subdivision 2 of section 209 of the social services law, as amended by section 2 of part P of chapter 56 of the laws of 2017, are amended to read as follows: (a) On and after January first, two thousand [seventeen] EIGHTEEN, for an eligible individual living alone, [$822.00] $837.00; and for an eligible couple living alone, [$1,207.00] $1,229.00. (b) On and after January first, two thousand [seventeen] EIGHTEEN, for an eligible individual living with others with or without in-kind income, [$758.00] $773.00; and for an eligible couple living with others with or without in-kind income, [$1,149.00] $1,171.00. (c) On and after January first, two thousand [seventeen] EIGHTEEN, (i) for an eligible individual receiving family care, [$1,001.48] $1,016.48 if he or she is receiving such care in the city of New York or the coun- ty of Nassau, Suffolk, Westchester or Rockland; and (ii) for an eligible couple receiving family care in the city of New York or the county of Nassau, Suffolk, Westchester or Rockland, two times the amount set forth in subparagraph (i) of this paragraph; or (iii) for an eligible individ- ual receiving such care in any other county in the state, [$963.48] $978.48; and (iv) for an eligible couple receiving such care in any other county in the state, two times the amount set forth in subpara- graph (iii) of this paragraph. (d) On and after January first, two thousand [seventeen] EIGHTEEN, (i) for an eligible individual receiving residential care, [$1,170.00] $1,185.00 if he or she is receiving such care in the city of New York or the county of Nassau, Suffolk, Westchester or Rockland; and (ii) for an eligible couple receiving residential care in the city of New York or the county of Nassau, Suffolk, Westchester or Rockland, two times the amount set forth in subparagraph (i) of this paragraph; or (iii) for an eligible individual receiving such care in any other county in the state, [$1,140.00] $1,155.00; and (iv) for an eligible couple receiving such care in any other county in the state, two times the amount set forth in subparagraph (iii) of this paragraph. (e) (i) On and after January first, two thousand [seventeen] EIGHTEEN, for an eligible individual receiving enhanced residential care, [$1,429.00] $1,444.00; and (ii) for an eligible couple receiving enhanced residential care, two times the amount set forth in subpara- graph (i) of this paragraph. (f) The amounts set forth in paragraphs (a) through (e) of this subdi- vision shall be increased to reflect any increases in federal supple- mental security income benefits for individuals or couples which become effective on or after January first, two thousand [eighteen] NINETEEN but prior to June thirtieth, two thousand [eighteen] NINETEEN. § 3. This act shall take effect December 31, 2018. PART ZZ Section 1. Subdivision 14 of section 131-a of the social services law, as added by section 1 of part H of chapter 58 of the laws of 2014, is amended to read as follows: 14. In determining the need for aid provided pursuant to public assistance programs, each person living with [clinical/symptomatic HIV S. 7509--C 85 A. 9509--C illness or AIDS] MEDICALLY DIAGNOSED HIV INFECTION AS DEFINED BY THE AIDS INSTITUTE OF THE DEPARTMENT OF HEALTH in social services districts with a population over five million who is receiving services through such district's administrative unit providing HIV/AIDS services, public assistance and earned and/or unearned income, shall not be required to pay more than thirty percent of his or her monthly earned and/or unearned income toward the cost of rent that such person has a direct obligation to pay; this provision shall not apply to room and board arrangements. § 2. Section 131-a of the social services law is amended by adding a new subdivision 15 to read as follows: 15. IN DETERMINING THE NEED FOR AID PROVIDED PURSUANT TO PUBLIC ASSISTANCE PROGRAMS, EACH PUBLIC ASSISTANCE RECIPIENT LIVING WITH MEDICALLY DIAGNOSED HIV INFECTION AS DEFINED BY THE AIDS INSTITUTE OF THE DEPARTMENT OF HEALTH IN SOCIAL SERVICES DISTRICTS WITH A POPULATION OF FIVE MILLION OR FEWER, AT LOCAL OPTION AND IN ACCORDANCE WITH A PLAN APPROVED BY THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE, MAY NOT BE REQUIRED TO PAY MORE THAN THIRTY PERCENT OF HIS OR HER MONTHLY EARNED AND/OR UNEARNED INCOME TOWARD THE COST OF RENT THAT SUCH PERSON HAS A DIRECT OBLIGATION TO PAY; THIS PROVISION SHALL NOT APPLY TO ROOM AND BOARD ARRANGEMENTS. § 3. This act shall take effect on the ninetieth day after it shall have become a law; provided, that the commissioner of the office of temporary and disability assistance may promulgate all rules and regu- lations necessary to implement the provisions of this act on an emergen- cy basis. PART AAA Section 1. Section 1 of subpart H of part C of chapter 20 of the laws of 2015, appropriating money for certain municipal corporations and school districts, as amended by section 1 of part QQ of chapter 58 of the laws of 2017, is amended to read as follows: Section 1. Contingent upon available funding, and not to exceed [$45,000,000] $69,000,000 moneys from the urban development corporation shall be available for a local government entity, which for the purposes of this section shall mean a county, city, town, village, school district or special district, where (i) on or after June 25, 2015, an electric generating facility located within such local government entity has ceased operations, and (ii) the closing of such facility has caused a reduction in the real property tax collections or payments in lieu of taxes of at least twenty percent owed by such electric generating facil- ity. Such moneys attributable to the cessation of operations, shall be paid annually on a first come, first served basis by the urban develop- ment corporation to such local government entity within a reasonable time upon confirmation from the state office of real property tax services or the local industrial development authority established pursuant to titles eleven and fifteen of article eight of the public authorities law, or the local industrial development agency established pursuant to article eighteen-A of the general municipal law that such cessation has resulted in a reduction in the real property tax collections or payments in lieu of taxes, provided, however, that the urban development corporation shall not provide assistance to such local government entity for more than seven years, and shall award payments reflecting the loss of revenues due to the cessation of operations as follows: S. 7509--C 86 A. 9509--C Award Year Maximum Potential Award 1 no more than eighty percent of loss of revenues 2 no more than seventy percent of loss of revenues 3 no more than sixty percent of loss of revenues 4 no more than fifty percent of loss of revenues 5 no more than forty percent of loss of revenues 6 no more than thirty percent of loss of revenues 7 no more than twenty percent of loss of revenues A local government entity shall be eligible for only one payment of funds hereunder per year. A local government entity may seek assistance under the electric generation facility cessation mitigation fund once a generator has submitted its notice to the federally designated electric bulk system operator (BSO) serving the state of New York of its intent to retire the facility or of its intent to voluntarily remove the facil- ity from service subject to any return-to-service provisions of any tariff, and that the facility also is ineligible to participate in the markets operated by the BSO. The date of submission of a local govern- ment entity's application for assistance shall establish the order in which assistance is paid to program applicants, except that in no event shall assistance be paid to a local government entity until such time that an electric generating facility has retired or become ineligible to participate in the markets operated by the BSO. For purposes of this section, any local government entity seeking assistance under the elec- tric generation facility cessation mitigation fund must submit an attes- tation to the department of public service that a facility is no longer producing electricity and is no longer participating in markets operated by the BSO. After receipt of such attestation, the department of public service shall confirm such information with the BSO. In the case that the BSO confirms to the department of public service that the facility is no longer producing electricity and participating in markets operated by such BSO, it shall be deemed that the electric generating facility located within the local government entity has ceased operation. The department of public service shall provide such confirmation to the urban development corporation upon receipt. The determination of the amount of such annual payment shall be determined by the president of the urban development corporation based on the amount of the differen- tial between the annual real property taxes and payments in lieu of taxes imposed upon the facility, exclusive of interest and penalties, during the last year of operations and the current real property taxes and payments in lieu of taxes imposed upon the facility, exclusive of interest and penalties. The total amount awarded from this program shall not exceed [$45,000,000] $69,000,000. § 2. This act shall take effect immediately provided, however, that the amendments to section 1 of subpart H of part C of chapter 20 of the laws of 2015 made by section one of this act shall not affect the repeal of such subpart and shall be deemed repealed therewith. PART BBB 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). S. 7509--C 87 A. 9509--C 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). 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. Courts special grants (22008). 42. Asbestos safety training program account (22009). 43. Batavia school for the blind account (22032). 44. Investment services account (22034). 45. Surplus property account (22036). 46. Financial oversight account (22039). 47. Regulation of Indian gaming account (22046). 48. Rome school for the deaf account (22053). 49. Seized assets account (22054). 50. Administrative adjudication account (22055). 51. Federal salary sharing account (22056). 52. New York City assessment account (22062). 53. Cultural education account (22063). 54. Local services account (22078). 55. DHCR mortgage servicing account (22085). S. 7509--C 88 A. 9509--C 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. Intentionally omitted. 66. State university general income offset account (22654). 67. Lake George park trust fund account (22751). 68. State police motor vehicle law enforcement account (22802). 69. Highway safety program account (23001). 70. DOH drinking water program account (23102). 71. NYCCC operating offset account (23151). 72. Commercial gaming revenue account (23701). 73. Commercial gaming regulation account (23702). 74. Highway use tax administration account (23801). 75. Fantasy sports administration account (24951). 76. Highway and bridge capital account (30051). 77. Aviation purpose account (30053). 78. State university residence hall rehabilitation fund (30100). 79. State parks infrastructure account (30351). 80. Clean water/clean air implementation fund (30500). 81. Hazardous waste remedial cleanup account (31506). 82. Youth facilities improvement account (31701). 83. Housing assistance fund (31800). 84. Housing program fund (31850). 85. Highway facility purpose account (31951). 86. Information technology capital financing account (32215). 87. New York racing account (32213). 88. Capital miscellaneous gifts account (32214). 89. New York environmental protection and spill remediation account (32219). 90. Mental hygiene facilities capital improvement fund (32300). 91. Correctional facilities capital improvement fund (32350). 92. New York State Storm Recovery Capital Fund (33000). 93. OGS convention center account (50318). 94. Empire Plaza Gift Shop (50327). 95. Centralized services fund (55000). 96. Archives records management account (55052). 97. Federal single audit account (55053). 98. Civil service EHS occupational health program account (55056). 99. Banking services account (55057). 100. Cultural resources survey account (55058). 101. Neighborhood work project account (55059). 102. Automation & printing chargeback account (55060). 103. OFT NYT account (55061). 104. Data center account (55062). 105. Intrusion detection account (55066). 106. Domestic violence grant account (55067). 107. Centralized technology services account (55069). 108. Labor contact center account (55071). 109. Human services contact center account (55072). 110. Tax contact center account (55073). S. 7509--C 89 A. 9509--C 111. Executive direction internal audit account (55251). 112. CIO Information technology centralized services account (55252). 113. Health insurance internal service account (55300). 114. Civil service employee benefits division administrative account (55301). 115. Correctional industries revolving fund (55350). 116. Employees health insurance account (60201). 117. Medicaid management information system escrow fund (60900). 118. Department of law civil recoveries account. 119. Utility environmental regulatory account (21064). 120. New York state secure choice administrative 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). 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). § 1-b. 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 fund within the special reven- ue, capital projects, proprietary or fiduciary funds for the purpose of payment of any fringe benefit or indirect cost liabilities or obli- gations incurred. § 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, 2019, 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. $2,500,000 from the miscellaneous special revenue fund, cable tele- vision account (21971), to the general fund. 3. An amount up to the unencumbered balance from the miscellaneous special revenue fund, business and licensing services account (21977), to the general fund. 4. $14,810,000 from the miscellaneous special revenue fund, code enforcement account (21904), to the general fund. 5. $3,000,000 from the general fund to the miscellaneous special revenue fund, tax revenue arrearage account (22168). Education: 1. $2,294,000,000 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. S. 7509--C 90 A. 9509--C 2. $906,800,000 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. $140,040,000 from the general fund to the New York state commercial gaming fund, commercial gaming revenue account (23701), as reimbursement for disbursements made from such fund for supplemental aid to education pursuant to section 97-nnnn of the state finance law that are in excess of the amounts deposited in such fund for purposes pursuant to section 1352 of the racing, pari-mutuel wagering and breeding law. 4. 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. 5. $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). 6. $900,000 from the general fund to the miscellaneous special revenue fund, Batavia school for the blind account (22032). 7. $900,000 from the general fund to the miscellaneous special revenue fund, Rome school for the deaf account (22053). 8. $343,400,000 from the state university dormitory income fund (40350) to the miscellaneous special revenue fund, state university dormitory income reimbursable account (21937). 9. $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). 10. $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. 11. $44,000,000 from the state university income fund, state universi- ty hospitals income reimbursable account (22656) to the general fund for hospital debt service for the period April 1, 2018 through March 31, 2019. 12. $4,300,000 from the miscellaneous special revenue fund, office of the professions account (22051), to the miscellaneous capital projects fund, office of the professions electronic licensing account (32200). 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 capital projects fund, I love NY water account (32212). 5. $28,000,000 from the general fund to the environmental protection fund, environmental protection fund transfer account (30451). S. 7509--C 91 A. 9509--C 6. $6,500,000 from the general fund to the hazardous waste remedial fund, hazardous waste oversight and assistance account (31505). 7. An amount up to or equal to the cash balance within the special revenue-other waste management & cleanup account (21053) to the capital projects fund (30000) for services and capital expenses related to the management and cleanup program as put forth in section 27-1915 of the environmental conservation law. 8. $1,800,000 from the miscellaneous special revenue fund, public service account (22011) to the miscellaneous special revenue fund, util- ity environmental regulatory account (21064). 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. $205,000,000 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). 9. $5,000,000 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. S. 7509--C 92 A. 9509--C 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. $21,778,000 from the general fund to the centralized services fund, COPS account (55013). 11. $13,960,000 from the general fund to the agencies internal service fund, central technology services account (55069), for the purpose of enterprise technology projects. 12. $5,500,000 from the miscellaneous special revenue fund, technology financing account (22207) to the internal service fund, data center account (55062). 13. $12,500,000 from the internal service fund, human services telecom account (55063) to the internal service fund, data center account (55062). 14. $300,000 from the internal service fund, learning management systems account (55070) to the internal service fund, data center account (55062). 15. $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). 16. $12,000,000 from the miscellaneous special revenue fund, parking services account (22007), to the centralized services, building support services account (55018). 17. $6,000,000 from the general fund to the internal service fund, business services center account (55022). 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. $33,134,000 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. 7509--C 93 A. 9509--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. $91,304,000 from the HCRA resources fund (20800) to the capital projects fund (30000). 9. $6,550,000 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. $11,700,000 from the unemployment insurance interest and penalty fund, unemployment insurance special interest and penalty account (23601), to the general fund. 3. $5,000,000 from the miscellaneous special revenue fund, workers' compensation account (21995), to the training and education program occupation safety and health fund, OSHA-training and education account (21251) and occupational health inspection account (21252). Mental Hygiene: 1. $10,000,000 from the general fund, 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. $2,200,000,000 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 general fund, to the agencies internal service fund, civil service EHS occupational health program account (55056). 7. $15,000,000 from the chemical dependence service fund, substance abuse services fund account (22700), to the capital projects fund (30000). 8. $3,000,000 from the chemical dependence service fund, substance abuse services fund account (22700), to the mental hygiene capital improvement fund (32305). 9. $3,000,000 from the chemical dependence service fund, substance abuse services fund account (22700), to the general fund. 10. $1,500,000 from the New York state commercial gaming fund, problem gambling services account (23703), to the general fund. 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. $20,773,000 from the general fund to the correctional industries revolving fund, correctional industries internal service account (55350). 4. $60,000,000 from any of the division of homeland security and emer- gency services special revenue federal funds to the general fund. 5. $8,600,000 from the miscellaneous special revenue fund, criminal justice improvement account (21945), to the general fund. S. 7509--C 94 A. 9509--C 6. $115,420,000 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. $118,500,000 from the general fund to the correctional facilities capital improvement fund (32350). 8. $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. 9. $10,000,000 from the miscellaneous special revenue fund, statewide public safety communications account (22123), to the capital projects fund (30000). 10. $9,830,000 from the miscellaneous special revenue fund, legal services assistance account (22096), to the general fund. 11. $1,000,000 from the general fund to the agencies internal service fund, neighborhood work project account (55059). 12. $7,980,000 from the miscellaneous special revenue fund, finger- print identification & technology account (21950), to the general fund. 13. $1,100,000 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. 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. $15,181,992 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. $265,900,000 from the general fund to the dedicated highway and bridge trust fund (30050). 5. $244,250,000 from the general fund to the MTA financial assistance fund, mobility tax trust account (23651). 6. $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- cated highway and bridge trust fund (30050) for such purpose pursuant to section 94 of the transportation law. 7. $3,000,000 from the miscellaneous special revenue fund, traffic adjudication account (22055), to the general fund. 8. $17,421,000 from the mass transportation operating assistance fund, metropolitan mass transportation operating assistance account (21402), to the capital projects fund (30000). 9. $5,000,000 from the miscellaneous special revenue fund, transporta- tion regulation account (22067) to the general fund, for disbursements made from such fund for motor carrier safety that are in excess of the amounts deposited in the general fund for such purpose pursuant to section 94 of the transportation law. Miscellaneous: 1. $250,000,000 from the general fund to any funds or accounts for the purpose of reimbursing certain outstanding accounts receivable balances. S. 7509--C 95 A. 9509--C 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. $18,550,000 from the general fund, community projects account GG (10256), to the general fund, state purposes account (10050). 5. $100,000,000 from any special revenue federal fund 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, 2019: 1. Upon request of the commissioner of environmental conservation, up to $12,531,400 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 $1,819,600 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, 2019, 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. § 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, 2019, up to $16,000,000 from the state S. 7509--C 96 A. 9509--C 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, 2019, 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, 2019. § 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 $1,018,312,300 from the general fund to the state university income fund, state university general revenue offset account (22655) during the period of July 1, 2018 through June 30, 2019 to support operations at the state university. § 10. 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 $20,000,000 from the general fund to the state university income fund, state university general revenue offset account (22655) during the period of July 1, 2018 to June 30, 2019 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. § 11. 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, 2019. § 12. 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 S. 7509--C 97 A. 9509--C 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, 2019. § 13. 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. § 14. 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, 2019, 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. § 15. Subdivision 5 of section 97-f of the state finance law, as amended by chapter 18 of the laws of 2003, is amended to read as follows: 5. The comptroller shall from time to time, but in no event later than the fifteenth day of each month, pay over for deposit in the mental hygiene [patient income] GENERAL FUND STATE OPERATIONS account all moneys in the mental health services fund in excess of the amount of money required to be maintained on deposit in the mental health services fund. The amount required to be maintained in such fund shall be (i) twenty percent of the amount of the next payment coming due relating to the mental health services facilities improvement program under any agreement between the facilities development corporation and the New York state medical care facilities finance agency multiplied by the number of months from the date of the last such payment with respect to payments under any such agreement required to be made semi-annually, plus (ii) those amounts specified in any such agreement with respect to payments required to be made other than semi-annually, including for variable rate bonds, interest rate exchange or similar agreements or other financing arrangements permitted by law. Prior to making any such payment, the comptroller shall make and deliver to the director of the budget and the chairmen of the facilities development corporation and the New York state medical care facilities finance agency, a certificate stating the aggregate amount to be maintained on deposit in the mental health services fund to comply in full with the provisions of this subdivision. § 16. 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 $650 million from the unencumbered balance of any special revenue S. 7509--C 98 A. 9509--C 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 2018-19 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. § 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. § 18. Notwithstanding any other law to the contrary, up to $145 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. S. 7509--C 99 A. 9509--C § 20. Notwithstanding any provision of law to the contrary, as deemed feasible and advisable by its trustees, the power authority of the state of New York is authorized and directed to transfer to the state treasury to the credit of the general fund $20,000,000 for the state fiscal year commencing April 1, 2018, the proceeds of which will be utilized to support energy-related state activities. § 21. 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, 2019: (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. § 22. Subdivision 5 of section 97-rrr of the state finance law, as amended by section 21 of part XXX of chapter 59 of the laws of 2017, 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 [seventeen] EIGHTEEN, 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 [$2,679,997,000] $2,458,909,000, 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 [seventeen] EIGHTEEN. § 23. 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, 2019, 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). 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. $830,000 from the miscellaneous special revenue fund, long island veterans' home account (22652). 9. $5,379,000 from the miscellaneous special revenue fund, state university general income reimbursable account (22653). 10. $112,556,000 from the miscellaneous special revenue fund, state university revenue offset account (22655). S. 7509--C 100 A. 9509--C 11. $557,000 from the miscellaneous special revenue fund, state university of New York tuition reimbursement account (22659). 12. $41,930,000 from the state university dormitory income fund, state university dormitory income fund (40350). 13. $1,000,000 from the miscellaneous special revenue fund, litigation settlement and civil recovery account (22117). § 24. Intentionally omitted § 25. Subdivision 6 of section 4 of the state finance law, as amended by section 24 of part UU of chapter 54 of the laws of 2016, is amended to read as follows: 6. Notwithstanding any law to the contrary, at the beginning of the state fiscal year, the state comptroller is hereby authorized and directed to receive for deposit to the credit of a fund and/or an account such monies as are identified by the director of the budget as having been intended for such deposit to support disbursements from such fund and/or account made in pursuance of an appropriation by law. As soon as practicable upon enactment of the budget, the director of the budget shall, but not less than three days following preliminary submission to the chairs of the senate finance committee and the assem- bly ways and means committee, file with the state comptroller an iden- tification of specific monies to be so deposited. Any subsequent change regarding the monies to be so deposited shall be filed by the director of the budget, as soon as practicable, but not less than three days following preliminary submission to the chairs of the senate finance committee and the assembly ways and means committee. All monies identified by the director of the budget to be deposited to the credit of a fund and/or account shall be consistent with the intent of the budget for the then current state fiscal year as enacted by the legislature. The provisions of this subdivision shall expire on March thirty-first, two thousand [eighteen] TWENTY. § 26. Subdivision 4 of section 40 of the state finance law, as amended by section 25 of part UU of chapter 54 of the laws of 2016, is amended to read as follows: 4. Every appropriation made from a fund or account to a department or agency shall be available for the payment of prior years' liabilities in such fund or account for fringe benefits, indirect costs, and telecommu- nications expenses and expenses for other centralized services fund programs without limit. Every appropriation shall also be available for the payment of prior years' liabilities other than those indicated above, but only to the extent of one-half of one percent of the total amount appropriated to a department or agency in such fund or account. The provisions of this subdivision shall expire March thirty-first, two thousand [eighteen] TWENTY. § 27. Notwithstanding any provision of law to the contrary, in the event that federal legislation, federal regulatory actions, federal executive actions or federal judicial actions in federal fiscal year 2019 reduce federal financial participation in Medicaid funding to New York state or its subdivisions by $850 million or more in state fiscal years 2018-19 or 2019-20, 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 activ- S. 7509--C 101 A. 9509--C ities that will be affected by the reduction in federal financial participation in 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 to the programs affected by the reduction in federal financial participation in Medicaid. Upon such submission, the legisla- ture shall have 90 days after such submission to either prepare its own plan, which may be adopted by concurrent resolution passed by both hous- es, or if after 90 days the legislature fails to adopt their own plan, the reductions to the general fund and state special revenue fund appro- priations and related disbursements identified in the division of the budget plan will go into effect automatically. § 28. Notwithstanding any provision of law to the contrary, in the event that federal legislation, federal regulatory actions, federal executive actions or federal judicial actions in federal fiscal year 2019 reduce federal financial participation or other federal aid in funding to New York state that affects the state operating funds finan- cial plan by $850 million or more in state fiscal years 2018-19 or 2019-20, exclusive of any cuts to Medicaid, 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 aid, (b) itemize the specific programs and activities that will be affected by the federal reductions, exclusive of Medicaid, and (c) iden- tify 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 disburse- ments 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 appropriations and related disbursements identified in the division of the budget plan will go into effect automatically. § 28-a. Intentionally omitted. § 29. Subdivision 1 of section 8-b of the state finance law, as added by chapter 169 of the laws of 1994, is amended to read as follows: 1. The comptroller is hereby authorized and directed to assess fringe benefit and central service agency indirect costs on all non-general funds, AND ON THE GENERAL FUND UPON REQUEST AND AT THE SOLE DISCRETION OF THE DIRECTOR OF THE BUDGET, and to [bill] CHARGE such assessments [on] TO such funds. Such fringe benefit and indirect costs [billings] ASSESSMENTS shall be based on rates provided to the comptroller by the director of the budget. Copies of such rates shall be provided to the legislative fiscal committees. § 30. 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 S. 7509--C 102 A. 9509--C 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. § 31. 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 24 of part XXX of chapter 59 of the laws of 2017, 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 [four hundred fifty million five hundred forty thousand dollars] FIVE HUNDRED FORTY MILLION NINE HUNDRED FIFTY-FOUR 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. § 32. 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 25 of part XXX of chapter 59 of the laws of 2017, 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 hereby authorized to issue bonds, notes and other obligations in an aggregate principal amount not to exceed [seven] EIGHT billion [seven hundred forty-one] EIGHTY-TWO million [one] EIGHT hundred ninety-nine thousand dollars [$7,741,199,000] $8,082,899,000, 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- S. 7509--C 103 A. 9509--C 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] EIGHT billion [seven hundred forty-one] EIGHTY-TWO million [one] EIGHT hundred ninety-nine thousand dollars [$7,741,199,000] $8,082,899,000, 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. § 33. Paragraph (a) of subdivision 2 of section 47-e of the private housing finance law, as amended by section 26 of part XXX of chapter 59 of the laws of 2017, 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 $5,981,399,000 five billion [three] NINE hundred [eighty-four] EIGHTY-ONE million [one] THREE hundred ninety-nine thousand dollars, plus a principal amount of bonds issued to fund the debt service reserve fund in accordance with the debt 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- S. 7509--C 104 A. 9509--C 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. § 34. 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 27 of part XXX of chapter 59 of the laws of 2017, 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 [$9,699,586,000] $10,251,939,000 cumulatively by the end of fiscal year [2017-18] 2018-19. § 35. Subdivision 1 of section 1689-i of the public authorities law, as amended by section 28 of part XXX of chapter 59 of the laws of 2017, 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] TWO hundred [eighty-three] SEVENTEEN million dollars. § 36. 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 29 of part XXX of chapter 59 of the laws of 2017, 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 [$173,600,000] $220,100,000 TWO HUNDRED TWENTY MILLION ONE HUNDRED THOU- SAND DOLLARS, 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 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. § 37. Section 44 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, as S. 7509--C 105 A. 9509--C amended by section 30 of part XXX of chapter 59 of the laws of 2017, 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 TECH INNOVATION AND ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM, high technology manufacturing projects in Chautauqua and Erie county, an industrial scale research and development facility in Clinton county, upstate revitalization initi- ative projects, DOWNSTATE REVITALIZATION INITIATIVE, 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, ROOSEVELT ISLAND OPERATING CORPORATION CAPITAL 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 [six] EIGHT billion [seven] THREE hundred [eight] million [two] FIVE hundred [fifty-seven] NINETY 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 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 S. 7509--C 106 A. 9509--C 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, NEW YORK STATE CAPITAL ASSISTANCE PROGRAM FOR TRANSPORTATION, INFRASTRUCTURE, AND ECONOMIC DEVELOPMENT, HIGH TECH INNOVATION AND ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM, high tech- nology manufacturing projects in Chautauqua and Erie county, an indus- trial scale research and development facility in Clinton county, upstate revitalization initiative projects, DOWNSTATE REVITALIZATION INITIATIVE, 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, ROOSEVELT ISLAND OPERATING CORPORATION CAPITAL 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 dormito- ry 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, 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 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. § 37-a. Subdivision (a) of section 1 of part X of chapter 59 of the laws of 2004, authorizing the New York state urban development corpo- ration and the dormitory authority of the state of New York to issue bonds or notes, as amended by section 53 of part BB of chapter 58 of the laws of 2011, is amended to read as follows: (a) Subject to the provisions of chapter 59 of the laws of 2000, but notwithstanding any other provision of law to the contrary, the New York State urban development corporation and the dormitory authority of the state of New York are hereby authorized to issue bonds or notes in one or more series in an aggregate principal amount not to exceed [$243,325,000] $293,325,000 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 projects cost of the Empire Opportunity Fund; Rebuilding the Empire State Through Oppor- tunities in Regional Economies (RESTORE) New York Program; and the Community Capital Assistance Program authorized pursuant to Part T of chapter 84 of the laws of 2002. Such bonds and notes of the corporation S. 7509--C 107 A. 9509--C or the dormitory authority 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 or the dormitory authority 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. All of the provisions of the New York state urban development corporation act and the dormitory authority act relating to bonds and notes which are not inconsistent with the provisions of this section shall apply to obligations author- ized by this section, including but not limited to the power to estab- lish adequate reserves therefor and to issue renewal notes or refunding bonds thereof. The issuance of any bonds or notes hereunder shall further be subject to the approval of the director of the division of the budget. § 38. Subdivision 3 of section 1285-p of the public authorities law, as amended by section 31 of part XXX of chapter 59 of the laws of 2017, is amended to read as follows: 3. The maximum amount of bonds that may be issued for the purpose of financing environmental infrastructure projects authorized by this section shall be [four] FIVE billion [nine] ONE hundred [fifty-one] FORTY-SEVEN million [seven] TWO hundred sixty thousand dollars, exclu- sive 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 other- wise 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. § 39. Intentionally omitted. § 40. Subdivision (a) of section 48 of part K of chapter 81 of the laws of 2002, relating to providing for the administration of certain funds and accounts related to the 2002-2003 budget, as amended by section 33 of part XXX of chapter 59 of the laws of 2017, 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 [$250,000,000] $253,000,000 TWO-HUNDRED FIFTY-THREE 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, 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 [$654,800,000] $748,800,000, SEVEN HUNDRED FORTY-EIGHT MILLION EIGHT HUNDRED 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 S. 7509--C 108 A. 9509--C 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. § 41. Subdivision 1 of section 386-b of the public authorities law, as amended by section 34 of part XXX of chapter 59 of the laws of 2017, 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 four billion [three] FIVE hundred [sixty-four] million dollars [$4,364,000,000] $4,500,000,000, 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 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. § 42. Paragraph (c) of subdivision 19 of section 1680 of the public authorities law, as amended by section 35 of part XXX of chapter 59 of the laws of 2017, 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 [twelve] THIRTEEN billion [three] ONE hundred [forty-three] SEVENTY-EIGHT million EIGHT HUNDRED SIXTY-FOUR THOUSAND dollars $13,178,864,000; 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 university 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 S. 7509--C 109 A. 9509--C 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 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. § 43. Paragraph (c) of subdivision 14 of section 1680 of the public authorities law, as amended by section 36 of part XXX of chapter 59 of the laws of 2017, 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] EIGHT billion [nine] THREE hundred [eighty-one] FOURTEEN million [nine] SIX hundred [sixty-eight] S. 7509--C 110 A. 9509--C NINETY-ONE thousand dollars $8,314,691,000. 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. § 44. Subdivision 10-a of section 1680 of the public authorities law, as amended by section 37 of part XXX of chapter 59 of the laws of 2017, 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 nine hundred [four- teen] SIXTY-EIGHT million [five] FIVE hundred [ninety] FORTY-TWO thou- sand dollars $968,542,000. 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. § 45. 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 38 of part XXX of chapter 59 of the laws of 2017, 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 hereby authorized to issue bonds, notes and other obligations in an aggregate principal amount not to exceed [six] SEVEN hundred [eighty- two] SIXTY-NINE million [nine] SIX hundred fifteen thousand dollars [($682,915,000)] ($769,615,000), 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] SEVEN hundred [eighty-two] SIXTY-NINE million [nine] SIX hundred fifteen thousand dollars [($682,915,000)] ($769,615,000), 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 S. 7509--C 111 A. 9509--C 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. § 46. 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 39 of part XXX of chapter 59 of the laws of 2017, 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 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 [three] SEVEN hundred [ninety-two] SEVENTY-EIGHT MILLION [eight] SEVEN hundred [fifteen] ELEVEN thousand dollars, exclud- ing mental health services facilities improvement bonds and mental health services facilities improvement notes issued to refund outstand- ing 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 facili- ties improvement bonds and/or mental health services facilities improve- ment notes the total aggregate principal amount of outstanding mental health services facilities improvement bonds and mental health facili- ties improvement notes may be greater than eight billion [three] SEVEN hundred [ninety-two] SEVENTY-EIGHT MILLION [eight] SEVEN hundred [fifteen] ELEVEN thousand dollars $8,778,711,000 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 pres- ent value of the aggregate debt service of the refunding or repayment S. 7509--C 112 A. 9509--C 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 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 includ- ing estimated accrued interest or proceeds received by the authority including estimated 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 certi- fied 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 maximum 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 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 commis- sioners to finance bondable appropriations previously approved by the legislature. § 47. Subdivision 1 of section 1680-r of the public authorities law, as amended by section 41 of part XXX of chapter 59 of the laws of 2017, 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 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, the health care facility transformation programs, and the essential health care provider program. The aggregate principal amount of bonds authorized to be issued pursuant to this section shall not exceed [two] THREE billion [seven hundred million] FIFTY 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 previ- ously 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 S. 7509--C 113 A. 9509--C 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. § 48. Intentionally omitted. § 49. 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 42-a of part XXX of chapter 59 of the laws of 2017, 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 [$47,000,000] $67,000,000, SIXTY-SEVEN MILLION DOLLARS 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 facilities 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. § 50. 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 42-b of part XXX of chapter 59 of the laws of 2017, 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] TWO billion [nine] THREE hundred [twenty-five] TWENTY-THREE million FIVE HUNDRED 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. § 51. Intentionally omitted. S. 7509--C 114 A. 9509--C § 52. Intentionally omitted. § 53. Intentionally omitted. § 54. Intentionally omitted. § 55. Intentionally omitted. § 56. Intentionally omitted. § 57. Intentionally omitted. § 58. Section 55 of chapter 59 of the laws of 2017 relating to provid- ing for the administration of certain funds and accounts related to the 2017-18 budget and authorizing certain payments and transfers, is amended to read as follows: § 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. § 59. Paragraph (b) of subdivision 3 and clause (B) of subparagraph (iii) of paragraph (j) of subdivision 4 of section 1 of part D of chap- ter 63 of the laws of 2005, relating to the composition and responsibil- ities of the New York state higher education capital matching grant board, as amended by section 45 of part UU of chapter 54 of the laws of 2016, are amended to read as follows: (b) Within amounts appropriated therefor, the board is hereby author- ized and directed to award matching capital grants totaling [240] TWO HUNDRED SEVENTY million dollars. Each college shall be eligible for a grant award amount as determined by the calculations pursuant to subdi- vision five of this section. In addition, such colleges shall be eligi- ble to compete for additional funds pursuant to paragraph (h) of subdi- vision four of this section. (B) The dormitory authority shall not issue any bonds or notes in an amount in excess of [240] TWO HUNDRED SEVENTY million dollars for the purposes of this section; excluding bonds or notes 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. Except for purposes of complying with the internal revenue code, any interest on bond proceeds shall only be used to pay debt service on such bonds. § 60. Subdivision 1 of section 1680-n of the public authorities law, as added by section 46 of part T of chapter 57 of the laws of 2007, is amended to read as follows: 1. Notwithstanding the provisions of any other law to the contrary, the authority and the urban development corporation are hereby author- ized to issue bonds or notes in one or more series for the purpose of funding project costs for the acquisition of state buildings and other facilities. The aggregate principal amount of bonds authorized to be issued pursuant to this section shall not exceed one hundred [forty] SIXTY-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 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 and the S. 7509--C 115 A. 9509--C 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. § 61. Subdivision 1 of section 386-a of the public authorities law, as amended by section 46 of part I of chapter 60 of the laws of 2015, 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 assisting the metropolitan transportation authority in the financing of transportation facilities as defined in subdivision seventeen of section twelve hundred sixty-one of this chapter. The aggregate principal amount of bonds authorized to be issued pursuant to this section shall not exceed one billion [five] SIX hundred [twenty] NINETY-FOUR million dollars [($1,520,000,000)] $1,694,000,000, 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 devel- opment corporation for principal, interest, and related expenses pursu- ant to a service contract 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. § 62. Subdivision 1 of section 1680-k of the public authorities law, as added by section 5 of part J-1 of chapter 109 of the laws of 2006, is amended to read as follows: 1. Subject to the provisions of chapter fifty-nine of the laws of two thousand, but notwithstanding any provisions of law to the contrary, the dormitory authority is hereby authorized to issue bonds or notes in one or more series in an aggregate principal amount not to exceed forty million SEVEN HUNDRED FIFTEEN THOUSAND dollars 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 the construction of the New York state agriculture and markets food labora- tory. Eligible project costs may include, but not be limited to the cost of design, financing, site investigations, site acquisition and prepara- tion, demolition, construction, rehabilitation, acquisition of machinery and equipment, and infrastructure improvements. Such bonds and notes of such authorized issuers 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 issuers for debt service and related expenses pursuant to any service contract executed pursuant to subdivision two 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. S. 7509--C 116 A. 9509--C § 63. Subdivision 13-d of section 5 of section 1 of chapter 359 of the laws of 1968, constituting the facilities development corporation act, as amended by chapter 166 of the laws of 1991, is amended to read as follows: 13-d. 1. Subject to the terms and conditions of any lease, sublease, loan or other financing agreement with the medical care facilities finance agency in accordance with subdivision 13-c of this section, to make loans to voluntary agencies for the purpose of financing or refi- nancing the design, construction, acquisition, reconstruction, rehabili- tation and improvement of mental hygiene facilities owned or leased by such voluntary agencies provided, however, that with respect to such facilities which are leased by a voluntary agency, the term of repayment of such loan shall not exceed the term of such lease including any option to renew such lease. Notwithstanding any other provisions of law, such loans may be made jointly to one or more voluntary agencies which own and one or more voluntary agencies which will operate any such mental hygiene facility. 2. SUBJECT TO THE TERMS AND CONDITIONS OF ANY LEASE, SUBLEASE, LOAN OR OTHER FINANCING AGREEMENT WITH THE MEDICAL CARE FACILITIES FINANCE AGEN- CY, TO MAKE GRANTS TO VOLUNTARY AGENCIES OR PROVIDE PROCEEDS OF MENTAL HEALTH SERVICES FACILITIES BONDS OR NOTES TO THE DEPARTMENT TO MAKE GRANTS TO VOLUNTARY AGENCIES OR TO REIMBURSE DISBURSEMENTS MADE THERE- FOR, IN EACH CASE, FOR THE PURPOSE OF FINANCING OR REFINANCING THE DESIGN, CONSTRUCTION, ACQUISITION, RECONSTRUCTION, REHABILITATION AND IMPROVEMENT OF MENTAL HYGIENE FACILITIES OWNED OR LEASED BY SUCH VOLUN- TARY AGENCIES. § 64. Paragraph a of subdivision 4 of section 9 of section 1 of chap- ter 359 of the laws of 1968, constituting the facilities development corporation act, as amended by chapter 90 of the laws of 1989, is amended to read as follows: a. Upon certification by the director of the budget of the availabili- ty of required appropriation authority, the corporation, or any succes- sor agency, is hereby authorized and empowered to enter into leases, subleases, loans and other financing agreements with the state housing finance agency and/or the state medical care facilities finance agency, and to enter into such amendments thereof as the directors of the corpo- ration, or any successor agency, may deem necessary or desirable, which shall provide for (i) the financing or refinancing of or the design, construction, acquisition, reconstruction, rehabilitation or improvement of one or more mental hygiene facilities or for the refinancing of any such facilities for which bonds have previously been issued and are outstanding, and the purchase or acquisition of the original furnishings, equipment, machinery and apparatus to be used in such facilities upon the completion of work, (ii) the leasing to the state housing finance agency or the state medical care facilities finance agency of all or any portion of one or more existing mental hygiene facilities and one or more mental hygiene facilities to be designed, constructed, acquired, reconstructed, rehabilitated or improved, or of real property related to the work to be done, including real property originally acquired by the appropriate commissioner or director of the department in the name of the state pursuant to article seventy-one of the mental hygiene law, (iii) the subleasing of such facilities and property by the corporation upon completion of design, construction, acquisition, reconstruction, rehabilitation or improvement, such leases, subleases, loans or other financing agreements to be upon such other terms and conditions as may be agreed upon, including terms and condi- S. 7509--C 117 A. 9509--C tions relating to length of term, maintenance and repair of mental hygiene facilities during any such term, and the annual rentals to be paid for the use of such facilities, property, furnishings, equipment, machinery and apparatus, and (iv) the receipt and disposition, including loans OR GRANTS to voluntary agencies, of proceeds of mental health service facilities bonds or notes issued pursuant to section nine-a of the New York state medical care facilities finance agency act. For purposes of the design, construction, acquisition, reconstruction, reha- bilitation or improvement work required by the terms of any such lease, sublease or agreement, the corporation shall act as agent for the state housing finance agency or the state medical care facilities finance agency. In the event that the corporation enters into an agreement for the financing of any of the aforementioned facilities with the state housing finance agency or the state medical care facilities finance agency, or in the event that the corporation enters into an agreement for the financing or refinancing of any of the aforementioned facilities with one or more voluntary agencies, it shall act on its own behalf and not as agent. The appropriate commissioner or director of the department on behalf of the department shall approve any such lease, sublease, loan or other financing agreement and shall be a party thereto. All such leases, subleases, loans or other financing agreements shall be approved prior to execution by no less than three directors of the corporation. § 65. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2018; provided, however, that the provisions of sections one, two, three, four, five, six, seven, eight, twelve, thirteen, fourteen, sixteen, seventeen, eigh- teen, nineteen, twenty, twenty-one, twenty-three, twenty-seven, and twenty-eight of this act shall expire March 31, 2019 when upon such date the provisions of such sections shall be deemed repealed. PART CCC Section 1. Paragraph e of subdivision 1 of section 211-d of the educa- tion law, as amended by section 1 of part YYY of chapter 59 of the laws of 2017, 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- 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- S. 7509--C 118 A. 9509--C 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 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; AND PROVIDED FURTHER THAT A SCHOOL DISTRICT THAT SUBMITTED A CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR, UNLESS ALL SCHOOLS IN THE DISTRICT ARE IDENTIFIED AS IN GOOD STANDING, SHALL SUBMIT A CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR WHICH S. 7509--C 119 A. 9509--C 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 AMOUNT APPROVED BY THE COMMISSIONER IN THE CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND SEVEN- TEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR. For purposes of this paragraph, the "gap elimination adjustment percentage" shall be calculated as the sum of one minus the quotient of the sum of the school district's net gap elimination 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 pursu- ant 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 activ- ities 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. Section 305 of the education law is amended by adding a new subdivision 58 to read as follows: 58. A. NO LATER THAN JUNE FIRST, TWO THOUSAND NINETEEN, THE COMMIS- SIONER SHALL PREPARE AND SUBMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY A REPORT THAT PROVIDES AN OVERVIEW OF TEACHER DIVERSITY THROUGHOUT THE STATE. SUCH REPORT SHALL: (I) STUDY THE POTENTIAL BARRIERS TO: ACHIEVING DIVERSITY WITHIN TEACH- ER PREPARATION PROGRAMS; OBTAINING AN INITIAL CERTIFICATE IN THE CLASS- ROOM TEACHING SERVICE; AND OBTAINING TEACHER CERTIFICATION AS A TEACHER AIDE OR TEACHING ASSISTANT; (II) INCLUDE AVAILABLE DATA ON RACE, ETHNICITY, GENDER, AND AGE; THE EFFORTS HIGHER EDUCATION INSTITUTIONS WITH TEACHER PREPARATION PROGRAMS ARE TAKING TO RECRUIT AND RETAIN A DIVERSE STUDENT POPULATION INTO SUCH PROGRAMS; AND THE EFFORTS THAT THE STATE AND SCHOOLS ARE TAKING TO ATTRACT, HIRE, AND RETAIN CERTIFIED TEACHERS WHO REFLECT THE DIVERSITY WITHIN NEW YORK STATE'S SCHOOLS; AND (III) MAKE RECOMMENDATIONS ON PROGRAMS, PRACTICES AND POLICIES THAT MAY BE IMPLEMENTED BY SCHOOLS AND TEACHER PREPARATION PROGRAMS TO IMPROVE TEACHER DIVERSITY THROUGHOUT THE STATE. B. THE COMMISSIONER SHALL CONSULT WITH STAKEHOLDERS AND OTHER INTER- ESTED PARTIES WHEN PREPARING SUCH REPORT. THE STATE UNIVERSITY OF NEW YORK, THE CITY UNIVERSITY OF NEW YORK, THE COMMISSION ON INDEPENDENT COLLEGES AND UNIVERSITIES, AND THE PROPRIETARY COLLEGE SECTOR WITH REGISTERED TEACHER EDUCATION PROGRAMS IN THIS STATE SHALL, TO THE EXTENT PRACTICABLE, IDENTIFY AND PROVIDE REPRESENTATIVES TO THE DEPARTMENT, AT THE REQUEST OF THE COMMISSIONER, IN ORDER TO PARTICIPATE IN THE DEVELOP- MENT AND DRAFTING OF SUCH REPORT. § 3. Intentionally omitted. § 4. The education law is amended by adding a new section 3614 to read as follows: § 3614. STATEMENT OF THE TOTAL FUNDING ALLOCATION. 1. NOTWITHSTANDING ANY PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, COMMENCING WITH THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR FOR SCHOOL DISTRICTS WHICH CONTAIN AT LEAST FOUR SCHOOLS AS REPORTED IN THE S. 7509--C 120 A. 9509--C SCHOOL REPORT CARD DATABASE PRODUCED BY THE COMMISSIONER FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR AND WHICH RECEIVE AT LEAST FIFTY PERCENT OF TOTAL REVENUE FROM STATE AID AS REPORTED IN THE FISCAL PROFILES MASTER FILES REPORT PRODUCED BY THE COMMISSIONER CONCERNING DATA ON SCHOOL DISTRICT EXPENDITURES AND REVENUES FOR THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR AND FOR SCHOOL DISTRICTS LOCATED IN A CITY WITH A POPULATION OF MORE THAN ONE MILLION, AND COMMENCING WITH THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR FOR SCHOOL DISTRICTS CONTAINING AT LEAST FOUR SCHOOLS AS REPORTED IN THE SCHOOL REPORT CARD DATABASE PRODUCED BY THE COMMISSIONER FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR, AND COMMENCING WITH THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL YEAR FOR ALL OTHER SCHOOL DISTRICTS ELIGIBLE FOR AN APPORTIONMENT PURSU- ANT TO SUBDIVISION FOUR OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART, SUCH SCHOOL DISTRICTS SHALL ANNUALLY SUBMIT TO THE COMMISSIONER AND THE DIRECTOR OF THE BUDGET AND SHALL MAKE PUBLICLY AVAILABLE AND ON THE DISTRICT WEBSITE A DETAILED STATEMENT OF THE TOTAL FUNDING ALLOCATION FOR EACH SCHOOL IN THE DISTRICT FOR THE UPCOMING SCHOOL BUDGET YEAR PRIOR TO THE FIRST DAY OF SUCH SCHOOL YEAR, PROVIDED THAT: A. SUCH STATEMENTS SHALL BE IN A STATEWIDE UNIFORM FORM DEVELOPED BY THE DIRECTOR OF THE BUDGET, IN CONSULTATION WITH THE COMMISSIONER, PROVIDED THAT WHEN PREPARING STATEMENTS DISTRICTS SHALL ADHERE TO AND COMPLETE THE PRESCRIBED FORM ACCURATELY AND FULLY, AND PROVIDED FURTHER THAT THE DIRECTOR OF THE BUDGET SHALL REQUEST IN SUCH FORM ONLY INFORMA- TION THAT IS KNOWN TO, OR MAY BE ASCERTAINED OR ESTIMATED BY, THE DISTRICT. PROVIDED, FURTHER, THAT EACH LOCAL EDUCATIONAL AGENCY SHALL INCLUDE IN SUCH STATEMENT THE APPROACH USED TO ALLOCATE FUNDS TO EACH SCHOOL AND THAT SUCH STATEMENT SHALL INCLUDE BUT NOT BE LIMITED TO SEPA- RATE ENTRIES FOR EACH INDIVIDUAL SCHOOL, DEMOGRAPHIC DATA FOR THE SCHOOL, PER PUPIL FUNDING LEVEL, SOURCE OF FUNDS, AND UNIFORM DECISION RULES REGARDING ALLOCATION OF CENTRALIZED SPENDING TO INDIVIDUAL SCHOOLS FROM ALL FUNDING SOURCES. B. WITHIN THIRTY DAYS OF SUBMISSION OF SUCH STATEMENT BY A SCHOOL DISTRICT, THE COMMISSIONER AND DIRECTOR OF THE BUDGET SHALL REVIEW SUCH STATEMENT AND DETERMINE WHETHER THE STATEMENT IS COMPLETE AND IS IN THE FORMAT REQUIRED BY PARAGRAPH A OF THIS SUBDIVISION. IF SUCH STATEMENT IS DETERMINED TO BE COMPLETE AND IN THE FORMAT REQUIRED BY PARAGRAPH A OF THIS SUBDIVISION, A WRITTEN ACKNOWLEDGEMENT OF SUCH SHALL BE SENT TO THE SCHOOL DISTRICT. IF NO DETERMINATION IS MADE BY THE COMMISSIONER AND THE DIRECTOR OF THE BUDGET WITHIN THIRTY DAYS OF SUBMISSION OF THE STATE- MENT, SUCH STATEMENT SHALL BE DEEMED APPROVED. SHOULD THE COMMISSIONER OR THE DIRECTOR OF THE BUDGET REQUEST ADDITIONAL INFORMATION FROM THE SCHOOL DISTRICT TO DETERMINE COMPLETENESS, THE DEADLINE SHALL BE EXTENDED BY THIRTY DAYS FROM THE DATE OF SUBMISSION OF THE ADDITIONAL REQUESTED INFORMATION. IF THE COMMISSIONER OR DIRECTOR OF THE BUDGET DETERMINE A SCHOOL DISTRICT'S SPENDING STATEMENT TO BE NONCOMPLIANT, SUCH SCHOOL DISTRICT SHALL BE ALLOWED TO SUBMIT A REVISED SPENDING STATEMENT AT ANY TIME. C. IF A SCHOOL DISTRICT FAILS TO SUBMIT A STATEMENT THAT IS COMPLETE AND IN THE FORMAT REQUIRED BY PARAGRAPH A OF THIS SUBDIVISION BY THE FIRST DAY OF SUCH SCHOOL YEAR OR IF THE COMMISSIONER OR DIRECTOR OF THE BUDGET DETERMINE THE SCHOOL DISTRICT'S SPENDING STATEMENT TO BE NONCOM- PLIANT, A WRITTEN EXPLANATION SHALL BE PROVIDED AND THE SCHOOL DISTRICT WILL HAVE THIRTY DAYS TO CURE. IF THE SCHOOL DISTRICT DOES NOT CURE WITHIN THIRTY DAYS, THE COMPTROLLER OF THE CITY IN WHICH SUCH SCHOOL DISTRICT IS SITUATED, OR IF THE CITY DOES NOT HAVE AN ELECTED COMP- S. 7509--C 121 A. 9509--C TROLLER, THE CHIEF FINANCIAL OFFICER OF THE CITY, OR FOR SCHOOL DISTRICTS NOT LOCATED IN A CITY, THE CHIEF FINANCIAL OFFICER OF THE TOWN IN WHICH THE MAJORITY OF THE SCHOOL DISTRICT IS SITUATED SHALL BE AUTHORIZED, AT HIS OR HER DISCRETION, TO OBTAIN APPROPRIATE INFORMATION FROM THE SCHOOL DISTRICT, AND SHALL BE AUTHORIZED TO COMPLETE SUCH FORM AND SUBMIT SUCH STATEMENT TO THE DIRECTOR OF THE BUDGET AND THE COMMIS- SIONER FOR APPROVAL IN ACCORDANCE WITH PARAGRAPH B OF THIS SUBDIVISION. WHERE THE COMPTROLLER OR CHIEF FINANCIAL OFFICER EXERCISES THE AUTHORITY TO SUBMIT SUCH FORM, SUCH SUBMISSION SHALL OCCUR WITHIN SIXTY DAYS FOLLOWING NOTIFICATION OF THE SCHOOL DISTRICT'S FAILURE TO CURE. NOTHING IN THIS PARAGRAPH SHALL PRECLUDE A SCHOOL DISTRICT FROM SUBMITTING A SPENDING STATEMENT FOR APPROVAL BY THE DIRECTOR OF THE BUDGET AND THE COMMISSIONER AT ANY TIME. 2. NOTHING IN THIS SECTION SHALL ALTER OR SUSPEND STATUTORY SCHOOL DISTRICT BUDGET AND VOTING OR APPROVAL REQUIREMENTS. § 4-a. Section 3601 of the education law, as amended by section 4-a of part A-1 of chapter 58 of the laws of 2006, and as further amended by subdivision (d) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: § 3601. When apportioned and how applied. The amount annually appro- priated by the legislature for general support for public schools, net of disallowances, refunds, reimbursements and credits, shall be appor- tioned by the commissioner each year prior to the dates of the respec- tive final payments provided by law and all moneys so apportioned shall be applied exclusively to school purposes authorized by law. General state aid claims, on forms prescribed by the commissioner, shall be submitted to the commissioner by September second of each school year, except that the audit report required by subdivision three of section twenty-one hundred sixteen-a of this chapter shall be submitted to the commissioner by October fifteenth following the close of the school year audited for all districts other than the city school districts of the cities of Buffalo, Rochester, Syracuse, Yonkers and New York and by January first following the close of the school year audited for such city school districts. No aid shall be paid to a school district or board of cooperative educational services prior to the submission of claims as required by the commissioner, except that no aid certified as payable to a school district by the commissioner of taxation and finance pursuant to paragraph (c) of subdivision three of section thirteen hundred six-a of the real property tax law shall be withheld due to the failure of the school district to submit general state aid claims required by the commissioner, [and] except that no aids shall be with- held due to the failure of a school district to submit the audit report required by subdivision three of section twenty-one hundred sixteen-a of this chapter until the thirtieth day following the due date specified in this section for such report, AND EXCEPT THAT APPORTIONMENT FOR GENERAL SUPPORT OF PUBLIC SCHOOLS FROM THE FUNDS APPORTIONED TO A SCHOOL DISTRICT FOR THE CURRENT YEAR IN EXCESS OF THE AMOUNT APPORTIONED TO SUCH SCHOOL DISTRICT IN THE BASE YEAR SHALL BE WITHHELD UNTIL ISSUANCE OF A DETERMINATION OF COMPLIANCE IN WRITING OF SUCH SCHOOL DISTRICT'S STATEMENT OF TOTAL FUNDING ALLOCATION BY THE COMMISSIONER AND THE DIREC- TOR OF THE BUDGET AS REQUIRED BY SECTION THIRTY-SIX HUNDRED FOURTEEN OF THIS PART, WHENEVER SUCH SHALL OCCUR, PROVIDED THAT FOR PURPOSES OF THIS SECTION, "CURRENT YEAR" SHALL MEAN THE CURRENT YEAR AS DEFINED IN PARA- GRAPH A OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART AND "BASE YEAR" SHALL MEAN THE BASE YEAR AS DEFINED IN PARAGRAPH B OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART. S. 7509--C 122 A. 9509--C § 4-b. Section 2590-r-1 of the education law is REPEALED. § 5. Intentionally omitted. § 6. Intentionally omitted. § 7. Intentionally omitted. § 8. Intentionally omitted. § 9. Paragraph r of subdivision 1 of section 3602 of the education law, as amended by section 11 of part B of chapter 57 of the laws of 2007, is amended to read as follows: r. "Sparsity count", for districts operating a kindergarten through grade twelve school program, shall mean the product of (i) the base year public school enrollment of the district and (ii) THE SPARSITY FACTOR, WHICH SHALL MEAN the quotient, computed to three decimals without round- ing, of the positive remainder of twenty-five minus the enrollment per square mile divided by fifty and nine tenths, but not less than zero. Enrollment per square mile shall be the quotient, computed to two deci- mals without rounding, of the public school enrollment of the school district on the date enrollment was counted in accordance with this subdivision for the base year divided by the square miles of the district, as determined by the commissioner. § 9-a. Subdivision 1 of section 3602 of the education law is amended by adding a new paragraph hh to read as follows: HH. "CONSUMER PRICE INDEX" SHALL MEAN THE QUOTIENT OF: (I) THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY FIRST OF THE CURRENT YEAR MINUS THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY FIRST OF THE PRIOR YEAR, DIVIDED BY (II) THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPARTMENT OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY FIRST OF THE PRIOR YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO THREE PLACES. § 9-b. Subdivision 4 of section 3602 of the education law, as amended by section 16-a of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: 4. Total foundation aid. In addition to any other apportionment pursu- ant 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 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 S. 7509--C 123 A. 9509--C 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 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- S. 7509--C 124 A. 9509--C 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] AS DEFINED BY PARAGRAPH HH OF SUBDIVISION ONE OF THIS SECTION, 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 seventeen--two thousand eighteen school years, the foundation amount shall be further adjusted by the phase-in foundation percent established pursuant to paragraph b of this subdivi- sion. (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 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 S. 7509--C 125 A. 9509--C 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 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 S. 7509--C 126 A. 9509--C (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 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 S. 7509--C 127 A. 9509--C (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 [eighteen] NINETEEN--two thousand [nineteen] TWENTY school year and thereafter the commissioner shall annually determine the phase-in foun- dation increase factor 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 therein. 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 S. 7509--C 128 A. 9509--C 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) 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- S. 7509--C 129 A. 9509--C 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 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 S. 7509--C 130 A. 9509--C 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 pursuant to section two thousand twenty-two of this chapter] AS DEFINED BY PARAGRAPH HH OF SUBDIVISION ONE OF THIS SECTION. Notwithstanding any other provision of law to the contrary, the public excess cost aid seta- side 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 [seventeen] EIGHTEEN--two thousand [eighteen] NINETEEN 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 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", AND (III) THE AMOUNT, IF ANY, SET FORTH FOR SUCH DISTRICT AS "COMMUNITY SCHOOLS INCREASE" IN THE DATA FILE PRODUCED BY THE COMMIS- SIONER IN SUPPORT OF THE EXECUTIVE BUDGET FOR THE TWO THOUSAND EIGH- TEEN--TWO THOUSAND NINETEEN SCHOOL YEAR AND ENTITLED "BT181-9". Each school district shall use such "COMMUNITY SCHL AID (BT1617)" amount to support the transformation of school buildings into community 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 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 S. 7509--C 131 A. 9509--C 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 extraordinary high levels of student need as identified by the commissioner, subject to the approval of the director of the budget. EACH SCHOOL DISTRICT SHALL USE SUCH "COMMUNITY SCHOOLS INCREASE" 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. F. FOUNDATION AID PAYABLE IN THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FOUNDATION AID PAYABLE IN THE TWO THOUSAND EIGHTEEN--TWO THOU- SAND NINETEEN SCHOOL YEAR SHALL EQUAL THE SUM OF (1) THE FOUNDATION AID BASE PLUS (2) THE GREATER OF (I) THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR PHASE-IN INCREASE OR (II) THE TWO THOUSAND EIGH- TEEN--TWO THOUSAND NINETEEN SCHOOL YEAR ADDITIONAL INCREASE OR (III) THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR DUE MINIMUM PLUS (3) THE EXECUTIVE FOUNDATION AID INCREASE, PROVIDED THAT ANY CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION OF ONE HUNDRED TWENTY-FIVE THOUSAND OR MORE SHALL ONLY BE ELIGIBLE FOR THE TWO THOUSAND EIGHTEEN-- TWO THOUSAND NINETEEN SCHOOL YEAR PHASE-IN INCREASE. FOR THE PURPOSES OF THIS PARAGRAPH, "FOUNDATION AID REMAINING" SHALL MEAN THE POSITIVE DIFFERENCE, IF ANY, OF (1) THE PRODUCT OF THE TOTAL AIDABLE FOUNDATION PUPIL UNITS MULTIPLIED BY THE DISTRICT'S SELECTED FOUNDATION AID LESS (2) THE TOTAL FOUNDATION AID BASE COMPUTED PURSUANT TO PARAGRAPH J OF SUBDIVISION ONE OF THIS SECTION. FOR THE PURPOSES OF THIS PARAGRAPH: (I) THE "TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR PHASE-IN INCREASE" SHALL BE EQUAL TO THE PRODUCT OF FOUNDATION AID REMAINING MULTIPLIED BY THE GREATER OF THE FOLLOWING PHASE-IN PERCENT- AGES: (A) ONE THOUSAND EIGHT HUNDRED FORTY-EIGHT ONE HUNDRED THOUSANDTHS (0.01848); (B) FOR SCHOOL DISTRICTS WHERE (I) THE QUOTIENT ARRIVED AT WHEN DIVID- ING FOUNDATION AID REMAINING BY TOTAL FOUNDATION AID IS GREATER THAN ONE HALF (0.5) AND (II) WHERE THE DIFFERENCE OF THE THREE YEAR AVERAGE FREE AND REDUCED PRICE LUNCH PERCENT FOR THE CURRENT YEAR LESS SUCH AVERAGE FOR THE BASE YEAR IS GREATER THAN FOUR ONE-HUNDREDTHS (0.04), FOUR THOU- SAND FIVE HUNDRED NINETY-NINE ONE HUNDRED THOUSANDTHS (0.04599); (C) 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 FOUR- TEEN--TWO THOUSAND FIFTEEN SCHOOL YEAR AND ENTITLED "SA1415", THREE THOUSAND FOUR HUNDRED NINETY-EIGHT ONE HUNDRED THOUSANDTHS (0.03498); (D) FOR A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, SEVEN HUNDRED NINETY-THREE TEN THOUSANDTHS (0.0793); S. 7509--C 132 A. 9509--C (E) 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, EIGHT HUNDRED THREE TEN THOUSANDTHS (0.0803); (F) 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, FIVE HUNDRED EIGHTY-EIGHT TEN THOUSANDTHS (0.0588); (G) FOR A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION OF MORE THAN ONE HUNDRED FIFTY THOUSAND BUT LESS THAN TWO HUNDRED THOUSAND AS OF THE MOST RECENT FEDERAL DECENNIAL CENSUS, SEVENTY-TWO THOUSANDTHS (0.072); (H) 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, ONE-TENTH (0.1); OR (I) FOR A SCHOOL DISTRICT WHERE THE QUOTIENT ARRIVED AT WHEN DIVIDING FOUNDATION AID REMAINING BY TOTAL FOUNDATION AID IS GREATER THAN FOUR- TENTHS (0.4), THIRTY-TWO THOUSANDTHS (0.032). (II) THE "TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR ADDITIONAL INCREASE" SHALL EQUAL THE GREATER OF: (A) FOR SCHOOL DISTRICTS WHERE THE QUOTIENT ARRIVED AT WHEN DIVIDING THE ENGLISH LANGUAGE LEARNER COUNT PURSUANT TO PARAGRAPH O OF SUBDIVI- SION ONE OF THIS SECTION BY PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE BASE YEAR PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION IS GREATER THAN THREE HUNDREDTHS (0.03), THE PRODUCT OF SUCH PUBLIC SCHOOL DISTRICT ENROLLMENT MULTIPLIED BY THE ELL FACTOR MULTIPLIED BY TWENTY- EIGHT DOLLARS AND NINETY-TWO CENTS ($28.92), WHERE THE "ELL FACTOR" SHALL EQUAL THE DIFFERENCE OF THREE LESS THE LESSER OF THE COMBINED WEALTH RATIO FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION THREE OF THIS SECTION OR ONE (1.0); (B) FOR SCHOOL DISTRICTS WITH A SPARSITY FACTOR THAT IS GREATER THAN ZERO, THE PRODUCT OF THE FRPL FACTOR MULTIPLIED BY THE CWR FACTOR MULTI- PLIED BY PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE BASE YEAR PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION MULTIPLIED BY ONE HUNDRED THIRTY-SEVEN DOLLARS AND NINETY-SEVEN CENTS ($137.97), WHERE THE "FRPL FACTOR" SHALL EQUAL THE SUM OF ONE-HALF (0.5) PLUS THE GREATER OF THE THREE YEAR AVERAGE FREE AND REDUCED PRICE LUNCH PERCENT FOR THE CURRENT YEAR OR SUCH AVERAGE FOR THE BASE YEAR, AND WHERE THE "CWR FACTOR" SHALL EQUAL (I) FOR SCHOOL DISTRICTS WITH A COMBINED WEALTH RATIO FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION THREE OF THIS SECTION LESS THAN FORTY-NINE HUNDREDTHS (0.49), ONE AND THREE-QUAR- TERS (1.75), (II) FOR SCHOOL DISTRICTS WITH A COMBINED WEALTH RATIO FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION THREE OF THIS SECTION GREATER THAN OR EQUAL TO FORTY-NINE HUNDREDTHS (0.49) BUT LESS THAN ONE (1.0), ONE (1.0), OR (III) FOR SCHOOL DISTRICTS WITH A COMBINED WEALTH RATIO FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION THREE OF THIS SECTION GREATER THAN OR EQUAL TO ONE (1.0), THREE-QUARTERS (0.75); OR (C) FOR SCHOOL DISTRICTS (1) WHERE THE DIFFERENCE OF THE THREE YEAR AVERAGE FREE AND REDUCED PRICE LUNCH PERCENT FOR THE CURRENT YEAR LESS SUCH AVERAGE FOR THE BASE YEAR IS GREATER THAN ONE HUNDRED FIVE TEN THOUSANDTHS (0.0105), (2) WITH A COMBINED WEALTH RATIO FOR TOTAL FOUNDA- TION AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION THREE OF THIS SECTION LESS THAN NINETY-ONE HUNDREDTHS (0.91), AND (3) WHERE THE QUOTIENT ARRIVED AT WHEN DIVIDING THE FOUNDATION AID REMAINING BY THE S. 7509--C 133 A. 9509--C TOTAL FOUNDATION AID IS GREATER THAN TWENTY-THREE HUNDREDTHS (0.23), THE PRODUCT OF THE PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE BASE YEAR PURSUANT TO PARAGRAPH H OF SUBDIVISION ONE OF THIS SECTION MULTIPLIED BY ONE HUNDRED TWENTY-ONE DOLLARS AND SEVENTY-FIVE CENTS ($121.75). (III) THE "TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR DUE MINIMUM" SHALL EQUAL THE GREATER OF: (A) THE POSITIVE DIFFERENCE, IF ANY, OF THE PRODUCT OF THE FOUNDATION AID BASE MULTIPLIED BY NINETEEN THOUSANDTHS (0.019) LESS THE EXECUTIVE FOUNDATION AID INCREASE; OR (B) THE PRODUCT OF THE EXECUTIVE FOUNDATION AID INCREASE MULTIPLIED BY EIGHTEEN HUNDREDTHS (0.18). (IV) THE "EXECUTIVE FOUNDATION AID INCREASE" SHALL BE EQUAL TO THE DIFFERENCE OF (A) THE AMOUNTS SET FORTH FOR EACH SCHOOL DISTRICT AS "FOUNDATION AID" UNDER THE HEADING "2018-19 ESTIMATED AIDS" IN THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE EXECUTIVE BUDGET REQUEST FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR AND ENTITLED "BT181-9" LESS (B) THE AMOUNTS SET FORTH FOR EACH SCHOOL DISTRICT AS "FOUNDATION AID" UNDER THE HEADING "2017-18 BASE YEAR AIDS" IN SUCH COMPUTER LISTING. § 9-c. Intentionally omitted. § 9-d. Intentionally omitted. § 10. The closing paragraph of subdivision 5-a of section 3602 of the education law, as amended by section 22 of part YYY of chapter 59 of the laws of 2017, 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 [seventeen] EIGHTEEN--two thousand [eighteen] NINETEEN 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". § 11. Paragraph b of subdivision 6-c of section 3602 of the education law, as amended by section 23 of part YYY of chapter 59 of the laws of 2017, 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 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 [eighteen] TWENTY-THREE 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 S. 7509--C 134 A. 9509--C 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. § 11-a. Subdivisions b and e of section 11 of part YYY of chapter 59 of the laws of 2017, amending the education law relating to contracts for excellence and the apportionment of public moneys, are amended to read as follows: 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 law of the year 2013 or thereafter and (2) where such total penalty exceeds [six] FOUR one-hundredths [(0.06)] (0.04) 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. 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)] ONE HUNDRED TWENTY-FIVE TEN- THOUSANDTHS (0.0125) of such district's total general fund expenditures for the year prior to the first year of such recovery, 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-hundredths (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)] ONE HUNDRED TWENTY-FIVE TEN-THOUS- ANDTHS (0.0125) 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 recovered; (4) there shall be no interest penalty assessed against such district or collected by the state. § 12. Subdivision 9 of section 3602 of the education law is amended by adding a new paragraph c to read as follows: C. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH A OF THIS SUBDIVISION, SCHOOL DISTRICTS RECEIVING AN APPORTIONMENT PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION IN THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN OR TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR SHALL BE ELIGIBLE FOR (A) AN APPORTIONMENT IN THE FOLLOWING SCHOOL YEAR EQUAL TO THE PROD- S. 7509--C 135 A. 9509--C UCT OF SIXTY-FIVE PERCENT MULTIPLIED BY THE AID RECEIVED BY THE DISTRICT PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION IN THE PRIOR SCHOOL YEAR, AND (B) AN APPORTIONMENT IN THE SCHOOL YEAR AFTER THE FOLLOWING YEAR EQUAL TO THE PRODUCT OF THIRTY-FIVE PERCENT MULTIPLIED BY THE AID RECEIVED BY THE DISTRICT PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION IN THE YEAR PRECEDING THE PRIOR YEAR. § 13. Subdivision 12 of section 3602 of the education law, as amended by section 3 of part A of chapter 56 of the laws of 2015, the fourth undesignated paragraph as added by section 3 of part A of chapter 54 of the laws of 2016, the closing paragraph as added by section 24 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: 12. Academic enhancement aid. A school district that as of April first of the base year has been continuously identified as a district in need of improvement for at least five years shall, for the two thousand eight--two thousand nine school year, be entitled to an additional apportionment equal to the positive remainder, if any, of (a) the lesser of fifteen million dollars or the product of the total foundation aid base, as defined by paragraph j of subdivision one of this section, multiplied by ten percent (0.10), less (b) the positive remainder of (i) the sum of the total foundation aid apportioned pursuant to subdivision four of this section and the supplemental educational improvement grants apportioned pursuant to subdivision eight of section thirty-six hundred forty-one of this article, less (ii) the total foundation aid base. For the two thousand nine--two thousand ten through two thousand four- teen--two thousand fifteen school years, each school district shall be entitled to an apportionment equal to the amount set forth for such school district as "EDUCATION GRANTS, ACADEMIC EN" 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", and such apportionment shall be deemed to satisfy the state obligation to provide an apportion- ment pursuant to subdivision eight of section thirty-six hundred forty- one of this article. For the two thousand fifteen--two thousand sixteen 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 head- ing "2014-15 ESTIMATED AIDS" in the school aid computer listing produced by the commissioner in support of the budget for the two thousand four- teen--two thousand fifteen school year and entitled "SA141-5", 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. For the two thousand sixteen--two thousand seventeen 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 "2015-16 ESTIMATED AIDS" in the school aid computer listing produced by the commissioner in support of the budget for the two thousand fifteen--two thousand sixteen school year and entitled "SA151-6", 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. 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 S. 7509--C 136 A. 9509--C 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. FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN 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 "2017-18 ESTIMATED AIDS" IN THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE BUDGET FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR AND ENTITLED "SA171-8", 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. § 14. The opening paragraph of subdivision 16 of section 3602 of the education law, as amended by section 25 of part YYY of chapter 59 of the laws of 2017, 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 [seventeen] EIGHTEEN--two thousand [eighteen] NINETEEN 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 produced by the commissioner in support of the budget for the two thousand 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". § 15. The opening paragraph of subdivision 10 of section 3602-e of the education law, as amended by section 26 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: 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 elev- en 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 S. 7509--C 137 A. 9509--C 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 commis- sioner, 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 thou- sand 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 (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 commis- sioner in support of the enacted budget for the 2011-12 school year and entitled "SA111-2", or (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 subdivi- sion twenty-one of section three hundred five of this chapter, and (v) for the two thousand seventeen--two thousand eighteen AND TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN school [year] YEARS, 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 PREKIN- DERGARTEN" 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 thou- sand sixteen--two thousand seventeen school year pursuant to chapter fifty-three of the laws of two thousand thirteen, and (vi) for the two thousand [eighteen] NINETEEN--two thousand [nineteen] 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" in the school aid computer listing produced by the commissioner in support of the enacted budget for the two thou- sand [seventeen] EIGHTEEN--two thousand [eighteen] NINETEEN 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 Appropriations 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 S. 7509--C 138 A. 9509--C 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 two thousand eighteen--two thousand nineteen school year] plus [(B)] (C) 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)] (D) 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)] (E) the amount awarded to such school district for the expanded prekindergarten program for three- and four-year-olds for the two thousand eighteen--two thou- sand nineteen school year pursuant to a chapter of the laws of two thou- sand seventeen plus [(E)] (F) the amount awarded to such school district, subject to an available appropriation, through the pre-kinder- garten expansion grant for the two thousand eighteen--two thousand nine- teen school year, provided that such school district has met all requirements pursuant to this section, and [(viii)] (VII) for the two thousand twenty--two thousand twenty-one school year and thereafter, 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 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 actual grant expenditures incurred by the school district in the current school year as approved by the commissioner. § 16. Subparagraphs (ii) and (iii) of paragraph b of subdivision 10 of section 3602-e of the education law, as amended by section 26 of part YYY of chapter 59 of the laws of 2017, are amended to read as follows: (ii) "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)], (A) the maximum aidable full-day prekindergarten pupils such district was eligi- ble to serve in the base year plus [(2)] (B) the maximum aidable number of half-day prekindergarten pupils converted into a full-day prekinder- garten 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 FEDERAL PRESCHOOL DEVELOPMENT EXPANSION GRANT, (C) the expanded prekin- dergarten program, [(C)] (D) the expanded prekindergarten for three- year-olds, [(D)] (E) the expanded prekindergarten program for three- and four-year-olds, and [(E)] (F) the prekindergarten expansion grant, (1) the maximum aidable full-day prekindergarten pupils such district was eligible to serve in the base year, plus (2) the maximum aidable number S. 7509--C 139 A. 9509--C of half-day prekindergarten pupils converted into a full-day prekinder- garten 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 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] THE PROGRAM PURSUANT TO THIS SECTION; 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 FEDERAL PRESCHOOL EXPANSION GRANT FOR THE BASE YEAR PLUS SUCH PUPILS FROM (2) the expanded prekin- dergarten program plus such pupils from [(2)] (3) the expanded prekin- dergarten for three-year-olds plus such pupils from [(3)] (4) the expanded prekindergarten program for three- and four-year-olds plus such pupils from [(4)] (5) 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; § 17. The closing paragraph of paragraph b of subdivision 10 of section 3602-e of the education law, as amended by section 26 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: 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; S. 7509--C 140 A. 9509--C (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, PURSUANT TO SUBDIVISION EIGHTEEN OF THIS SECTION, to the extent such program was available subject to appropri- ation, and provided that such school district has met all requirements pursuant to this section. § 18. Subdivision 11 of section 3602-e of the education law, as amended by section 27 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: 11. 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] EQUAL TO 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 pursu- ant to subdivision ten of this section. § 18-a. Subdivision 18 of section 3602-e of the education law, as added by section 30 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: 18. Universal prekindergarten expansion grants. A. Subject to avail- able 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; PROVIDED THAT SUCH GRANTS SHALL BE AWARDED TO SCHOOL DISTRICTS TO ESTABLISH NEW FULL-DAY AND HALF-DAY PREKINDERGARTEN PLACEMENTS. ALL SCHOOL DISTRICTS SHALL BE ELIGIBLE TO APPLY FOR SUCH GRANTS, WHICH SHALL BE AWARDED BASED ON FACTORS INCLUDING, BUT NOT LIMITED TO, THE FOLLOW- ING: (I) MEASURES OF SCHOOL DISTRICT NEED, (II) MEASURES OF THE NEED OF STUDENTS TO BE SERVED BY THE SCHOOL DISTRICT, (III) THE SCHOOL DISTRICT'S PROPOSAL TO TARGET THE HIGHEST-NEED SCHOOLS AND STUDENTS, (IV) THE EXTENT TO WHICH THE DISTRICT'S PROPOSAL WOULD PRIORITIZE FUNDS TO MAXIMIZE THE TOTAL NUMBER OF ELIGIBLE CHILDREN IN THE DISTRICT SERVED IN PREKINDERGARTEN PROGRAMS, AND (V) PROPOSAL QUALITY. B. SUCH GRANTS SHALL ONLY BE AVAILABLE TO SUPPORT PROGRAMS: (I) THAT AGREE TO OFFER INSTRUCTION CONSISTENT WITH APPLICABLE NEW YORK STATE PREKINDERGARTEN EARLY LEARNING STANDARDS; AND (II) THAT OTHERWISE COMPLY WITH ALL OF THE SAME RULES AND REQUIREMENTS AS UNIVERSAL PREKINDERGARTEN PROGRAMS PURSUANT TO THIS SECTION. S. 7509--C 141 A. 9509--C C. A SCHOOL DISTRICT'S GRANT SHALL EQUAL THE PRODUCT OF: (I) (A) TWO MULTIPLIED BY THE APPROVED NUMBER OF NEW FULL-DAY PREKINDERGARTEN PLACE- MENTS PLUS (B) THE APPROVED NUMBER OF HALF-DAY PREKINDERGARTEN PLACEMENT CONVERSIONS AND NEW HALF-DAY PREKINDERGARTEN PLACEMENTS, AND (II) THE DISTRICT'S SELECTED AID PER PREKINDERGARTEN PUPIL PURSUANT TO SUBPARA- GRAPH (I) OF PARAGRAPH B OF SUBDIVISION TEN OF THIS SECTION; PROVIDED, HOWEVER, THAT NO DISTRICT SHALL RECEIVE A GRANT IN EXCESS OF THE TOTAL ACTUAL GRANT EXPENDITURES INCURRED BY THE DISTRICT IN THE CURRENT SCHOOL YEAR AS APPROVED BY THE COMMISSIONER. § 18-b. Subparagraph (ii) of paragraph (c) of subdivision 8 of section 3602-ee of the education law, as amended by section 31-a of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: (ii) Provided that, notwithstanding any provisions of this paragraph to the contrary, for the two thousand seventeen-two thousand eighteen AND TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN school [year] YEARS an exemption to the certification requirement of subparagraph (i) of this paragraph may be made for a teacher without certification 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 commissioner of the office of children and family services. Notwithstanding any exemption provided by this subparagraph, certification shall be required for employment no later than June thirtieth, two thousand [eighteen] NINETEEN. § 19. Subdivision 16 of section 3602-ee of the education law, as amended by section 31 of part YYY of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN; provided that the program shall continue and remain in full effect. § 20. Intentionally omitted. § 21. The opening paragraph of section 3609-a of the education law, as amended by section 33 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: For aid payable in the two thousand seven--two thousand eight school year through the two thousand [seventeen] EIGHTEEN--two thousand [eigh- teen] NINETEEN 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- 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 S. 7509--C 142 A. 9509--C 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 [seventeen] EIGHTEEN--two thousand [eighteen] NINETEEN school year, reference to such "school aid computer listing for the current year" shall mean the printouts entitled ["SA171-8"] "SA181-9". § 22. Paragraph b of subdivision 2 of section 3612 of the education law, as amended by section 34 of part YYY of chapter 59 of the laws of 2017, 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 [seventeen] EIGHTEEN--two thousand [eighteen] NINETEEN. § 23. Subdivision 6 of section 4402 of the education law, as amended by section 35 of part YYY of chapter 59 of the laws of 2017, 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 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 [eighteen] NINETEEN of the two thousand [seventeen] EIGHTEEN--two thousand [eighteen] NINETEEN school year, be authorized to increase class sizes in special classes containing students with disabilities whose age ranges 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, S. 7509--C 143 A. 9509--C provided that in a city school district having a population 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 appli- cable 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 certif- ication 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 pursuant to this subdivision, the commissioner shall be authorized to terminate such authorization upon a finding that the board has failed to develop or implement an approved corrective action plan. § 24. Intentionally omitted. § 25. 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 44 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: b. Reimbursement for programs approved in accordance with subdivision a of this section for the [2015--2016 school year shall not exceed 60.7 percent of the lesser of such approvable costs per contact hour or thir- teen dollars and forty cents per contact hour, reimbursement for the] 2016--2017 school year shall not exceed 60.3 percent of the lesser of such approvable 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, AND REIMBURSEMENT FOR THE 2018--2019 SCHOOL YEAR SHALL NOT EXCEED 59.4 PERCENT OF THE LESSER OF SUCH APPROVABLE COSTS PER CONTACT HOUR OR FOUR- TEEN DOLLARS AND NINETY-FIVE 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 2015--2016 school year such contact hours shall not exceed one million five hundred ninety-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] WHEREAS for the 2017--2018 school year such contact hours shall not exceed one million five hundred forty-nine thou- sand four hundred sixty-three (1,549,463); AND FOR THE 2018--2019 SCHOOL YEAR SUCH CONTACT HOURS SHALL NOT EXCEED ONE MILLION FOUR HUNDRED SIXTY-THREE THOUSAND NINE HUNDRED SIXTY-THREE (1,463,963). Notwith- standing any other provision of law to the contrary, the apportionment 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 educa- tion, not to exceed the contact hours set forth herein, were eligible S. 7509--C 144 A. 9509--C for aid in accordance with the provisions of such subdivision 11 of section 3602 of the education law. § 26. 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 w to read as follows: W. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY AFTER THE COMPLETION OF PAYMENTS FOR THE 2018--2019 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). § 27. 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 46 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: § 6. This act shall take effect July 1, 1992, and shall be deemed repealed on June 30, [2018] 2019. § 27-a. Paragraph a-1 of subdivision 11 of section 3602 of the educa- tion law, as amended by section 60 of part YYY of chapter 59 of the laws of 2017, 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 [seventeen] EIGHTEEN--two thou- sand [eighteen] NINETEEN, 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. § 28. 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 47 of part YYY of chapter 59 of the laws of 2017, 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, [2018] 2019 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, [2018] 2019; § 29. Intentionally omitted. § 30. Section 8 of chapter 89 of the laws of 2016, relating to supple- mentary funding for dedicated programs for public school students in the S. 7509--C 145 A. 9509--C East Ramapo central school district, as amended by section 49 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: § 8. This act shall take effect July 1, 2016 and shall expire and be deemed repealed June 30, [2018] 2019, EXCEPT THAT PARAGRAPH (B) OF SECTION FIVE OF THIS ACT AND SECTION SEVEN OF THIS ACT SHALL EXPIRE AND BE DEEMED REPEALED JUNE 30, 2021. § 31. 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 50 of part YYY of chapter 59 of the laws of 2017, 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, [2018] 2019 when upon such date the provisions of this act shall be deemed repealed. § 32. Subdivision 1 of section 167 of chapter 169 of the laws of 1994, relating to certain provisions related to the 1994-95 state operations, aid to localities, capital projects and debt service budgets, as amended by section 32 of part A of chapter 54 of the laws of 2016, is amended to read as follows: 1. Sections one through seventy of this act shall be deemed to have been in full force and effect as of April 1, 1994 provided, however, that sections one, two, twenty-four, twenty-five and twenty-seven through seventy of this act shall expire and be deemed repealed on March 31, 2000; provided, however, that section twenty of this act shall apply only to hearings commenced prior to September 1, 1994, and provided further that section twenty-six of this act shall expire and be deemed repealed on March 31, 1997; and provided further that sections four through fourteen, sixteen, and eighteen, nineteen and twenty-one through twenty-one-a of this act shall expire and be deemed repealed on March 31, 1997; and provided further that sections three, fifteen, seventeen, twenty, twenty-two and twenty-three of this act shall expire and be deemed repealed on March 31, [2018] 2020. § 33. 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 amended by section 12 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: § 4. This act shall take effect July 1, 2002 and shall expire and be deemed repealed June 30, [2018] 2019. § 34. 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 13 of part YYY of chapter 59 of the laws of 2017, 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, [2018] 2019. § 35. Section 2 of subpart B of part AA of chapter 56 of the laws of 2014, amending the education law relating to providing that standardized test scores shall not be included on a student's permanent record, is amended to read as follows: § 2. This act shall take effect immediately and shall expire and be deemed repealed on December 31, [2018] 2019. § 36. School bus driver training. In addition to apportionments other- wise provided by section 3602 of the education law, for aid payable in the 2018-2019 school year, the commissioner of education shall allocate school bus driver training grants to school districts and boards of S. 7509--C 146 A. 9509--C 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. § 37. 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 2019 and not later than the last day of the third full business week of June 2019, 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, 2019, for salary expenses incurred between April 1 and June 30, 2018 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 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 S. 7509--C 147 A. 9509--C 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. § 38. 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, 2019, 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, 2019 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. S. 7509--C 148 A. 9509--C § 39. 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 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. § 40. 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 2018--2019 school year, as a non-component school district, services required by article 19 of the education law. § 41. The amounts specified in this section shall be a setaside from the state funds which each such district is receiving from the total foundation aid: a. for the development, maintenance or expansion of magnet schools or magnet school programs for the 2018--2019 school year. For the city school district of the city of New York there shall be a setaside of foundation aid equal to 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; for the Buffalo city school district, twenty-one million twenty-five thousand dollars ($21,025,000); for the Rochester city school district, fifteen million dollars ($15,000,000); for the Syracuse city school district, thirteen million dollars ($13,000,000); for the Yonkers city school district, forty-nine million five hundred thousand dollars ($49,500,000); for the Newburgh city school district, four million six hundred forty-five thou- sand dollars ($4,645,000); for the Poughkeepsie city school district, two million four hundred seventy-five thousand dollars ($2,475,000); for the Mount Vernon city school district, two million dollars ($2,000,000); for the New Rochelle city school district, one million four hundred ten thousand dollars ($1,410,000); for the Schenectady city school district, one million eight hundred thousand dollars ($1,800,000); for the Port Chester city school district, one million one hundred fifty thousand dollars ($1,150,000); for the White Plains city school district, nine hundred thousand dollars ($900,000); for the Niagara Falls city school district, six hundred thousand dollars ($600,000); for the Albany city school district, three million five hundred fifty thousand dollars ($3,550,000); for the Utica city school district, two million dollars ($2,000,000); for the Beacon city school district, five hundred sixty- six thousand dollars ($566,000); for the Middletown city school district, four hundred thousand dollars ($400,000); for the Freeport S. 7509--C 149 A. 9509--C union free school district, four hundred thousand dollars ($400,000); for the Greenburgh central school district, three hundred thousand dollars ($300,000); for the Amsterdam city school district, eight hundred thousand dollars ($800,000); for the Peekskill city school district, two hundred thousand dollars ($200,000); and for the Hudson city school district, four hundred thousand dollars ($400,000). b. Notwithstanding any inconsistent provision of law to the contrary, a school district setting aside such foundation aid pursuant to this section may use such setaside 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 promote diversity and/or enhancement of the instructional program and raising of standards in elementary and secondary schools of school districts having substan- tial concentrations of minority students. c. The commissioner of education shall not be authorized to withhold foundation aid 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 2018--2019 school year, and 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 2018--2019 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 section to communi- ty-based organizations. Any increase required pursuant to this section to community-based organizations must be in addition to allocations provided to community-based organizations in the base year. d. For the purpose of teacher support for the 2018--2019 school year: for the city school district of the city of New York, sixty-two million seven hundred seven thousand dollars ($62,707,000); for the Buffalo city school district, one million seven hundred forty-one thousand dollars ($1,741,000); for the Rochester city school district, one million seven- ty-six thousand dollars ($1,076,000); for the Yonkers city school district, one million one hundred forty-seven thousand dollars ($1,147,000); and for 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. § 42. 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 2018-2019 S. 7509--C 150 A. 9509--C 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 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 2018-2019 by a chapter of the laws of 2018 enacting the education, labor and fami- ly assistance budget shall fulfill the state's obligation to provide such aid and, pursuant to a plan developed by the commissioner of educa- tion 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. § 42-a. 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 38 of part YYY of chapter 59 of the laws of 2017, 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 [2017-18] 2018-19 school year, four million dollars ($4,000,000); for the [2018-19] 2019-20 school year, three million dollars ($3,000,000); for the [2019-20] 2020-21 school year, two million dollars ($2,000,000); for the [2020-21] 2021-22 school year, one million dollars ($1,000,000); and for the [2021-22] 2022-23 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. § 42-b. Subdivision 4 of section 3627 of the education law, as amended by section 53 of part A of chapter 54 of the laws of 2016, is amended to read as follows: 4. Notwithstanding any other provision of law to the contrary, any expenditures for transportation provided pursuant to this section in the two thousand thirteen--two thousand fourteen school year and thereafter and otherwise eligible for transportation aid pursuant to subdivision seven of section thirty-six hundred two of this article shall be consid- ered approved transportation expenses eligible for transportation aid, provided further that for the two thousand thirteen--two thousand four- teen school year such aid shall be limited to eight million one hundred thousand dollars and for the two thousand fourteen--two thousand fifteen school year such aid shall be limited to the sum of twelve million six hundred thousand dollars plus the base amount and for the two thousand fifteen--two thousand sixteen school year and thereafter such aid shall be limited to the sum of [seventeen] EIGHTEEN million [one] EIGHT hundred AND FIFTY thousand dollars plus the base amount. For purposes of S. 7509--C 151 A. 9509--C this subdivision, "base amount" means the amount of transportation aid paid to the school district for expenditures incurred in the two thou- sand twelve--two thousand thirteen school year for transportation that would have been eligible for aid pursuant to this section had this section been in effect in such school year, except that subdivision six of this section shall be deemed not to have been in effect. And provided further that the school district shall continue to annually expend for the transportation described in subdivision one of this section at least the expenditures used for the base amount. § 43. 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. § 44. This act shall take effect immediately, and shall be deemed to have been in full force and effect on and after April 1, 2018; provided, however, that: 1. Sections one, nine, nine-a, nine-b, ten, eleven, twelve, thirteen, fourteen, fifteen, sixteen, seventeen, eighteen, nineteen, twenty-one, twenty-two, twenty-three, thirty-six, forty and forty-one of this act shall take effect July 1, 2018; and 2. Sections four and four-a of this act shall expire and be deemed repealed June 30, 2023; and 3. The amendments to 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 made by sections twenty-five and twenty-six of this act shall not affect the repeal of such chapter and shall be deemed repealed therewith; and 4. Section twenty-eight of this act shall be deemed to have been in full force and effect on and after the effective date of section 140 of chapter 82 of the laws of 1995; and 5. The amendments to paragraph b-1 of subdivision 4 of section 3602 of the education law made by section nine-b of this act shall not affect the expiration of such paragraph and shall expire therewith. PART DDD Section 1. Paragraph (c) of subdivision 2 of section 1 of part A of chapter 85 of the laws of 2017, relating to creating the Lake Ontario- St. Lawrence Seaway flood recovery and International Joint Commission Plan 2014 mitigation grant program, as amended by section 2 of part J of chapter 61 of the laws of 2017, is amended to read as follows: (c) The New York state urban development corporation shall administer this grant program, which shall not exceed in the aggregate $15,000,000 PLUS ANY FUNDS DIRECTED FROM THE PROGRAMS AUTHORIZED IN SUBDIVISIONS 3 AND 4 OF THIS SECTION. Such corporation and other relevant state agen- cies and state authorities are hereby empowered to establish grant guidelines and additional eligibility criteria as deemed necessary to effectuate the administration of this program. Any grant guidelines and eligibility criteria established by the corporation pursuant to this S. 7509--C 152 A. 9509--C subdivision shall be equivalent to, and shall not be more restrictive than, those established by the New York State Urban Development Corpo- ration, doing business as the Empire State Development Corporation, in the grant programs it administered pursuant to part H of chapter 56 of the laws of 2011. In providing assistance pursuant to this subdivision, the New York state urban development corporation shall give preference to applicants that demonstrate the greatest need, based on available flood damage data provided by applicable state and/or federal agencies. § 2. Paragraph (c) of subdivision 3 of section 1 of part A of chapter 85 of the laws of 2017, relating to creating the Lake Ontario-St. Lawrence Seaway flood recovery and International Joint Commission Plan 2014 mitigation grant program, as amended by section 2 of part J of chapter 61 of the laws of 2017, is amended to read as follows: (c) The affordable housing corporation shall administer this grant program, which shall not exceed in the aggregate $15,000,000 PLUS ANY FUNDS DIRECTED FROM THE PROGRAMS AUTHORIZED IN SUBDIVISIONS 2 AND 4 OF THIS SECTION. Such corporation and other relevant state agency or state authorities are hereby empowered to establish grant guidelines and addi- tional eligibility criteria as deemed necessary to effectuate the admin- istration of this program. Any grant guidelines and eligibility crite- ria established by the corporation pursuant to this subdivision shall be equivalent to, and shall not be more restrictive than, those established by the New York State Urban Development Corporation, doing business as the Empire State Development Corporation, in the grant programs it administered pursuant to part H of chapter 56 of the laws of 2011. In providing assistance pursuant to this subdivision, the affordable hous- ing corporation shall give preference to applicants that demonstrate the greatest need, based on available flood damage data provided by applica- ble state and/or federal agencies. § 3. Paragraph (c) of subdivision 4 of section 1 of part A of chapter 85 of the laws of 2017, relating to creating the Lake Ontario-St. Lawrence Seaway flood recovery and International Joint Commission Plan 2014 mitigation grant program, as amended by section 2 of part J of chapter 61 of the laws of 2017, is amended to read as follows: (c) The housing trust fund corporation shall administer this grant program, which shall not exceed in the aggregate $15,000,000 PLUS ANY FUNDS DIRECTED FROM THE PROGRAMS AUTHORIZED IN SUBDIVISIONS 2 AND 3 OF THIS SECTION. Such corporation, and other relevant state agencies or state authorities, is hereby empowered to establish grant guidelines and additional eligibility criteria, based on available flood damage data provided by applicable state and/or federal agencies, as it deems neces- sary to effectuate the administration of this program. Any grant guide- lines and eligibility criteria established by the corporation pursuant to this subdivision shall be equivalent to, and shall not be more restrictive than, those established by the New York State Urban Develop- ment Corporation, doing business as the Empire State Development Corpo- ration, in the grant programs it administered pursuant to part H of chapter 56 of the laws of 2011. In providing assistance pursuant to this subdivision, the corporation shall give preference to applicants that demonstrate the greatest need, based on available flood damage data provided by applicable state and/or federal agencies. § 4. This act shall take effect immediately. PART EEE S. 7509--C 153 A. 9509--C Section 1. The tax department shall be required to set up an online application system for taxpayers to submit claims for reimbursements of payments of interest on fixed and final determinations of underpayments of federal tax liability for the 2019, 2020 and 2021 tax year that arise from the taxpayers' reliance on amendments to the tax law enacted in the year 2018. In order to receive such reimbursement, taxpayers shall be required to submit their reimbursement claims to the department of taxa- tion and finance within 60 days of making their payments of interest to the internal revenue service. § 2. This act shall take effect immediately. PART FFF Section 1. This Part enacts into law major components of legislation relating to the conversion of certain entities that have been issued certificates of authority pursuant to article forty-four of the public health law. Each component is wholly contained within a Subpart identi- fied 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 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 Part sets forth the general effective date of this Part. SUBPART A Section 1. The state finance law is amended by adding a new section 92-hh to read as follows: § 92-HH. HEALTH CARE TRANSFORMATION FUND. 1. THERE IS HEREBY ESTAB- LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION- ER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE "HEALTH CARE TRANS- FORMATION FUND". 2. SUCH FUND SHALL CONSIST OF MONEYS PAID THERETO FROM (A) CONTINGENT RESERVES REDEPLOYED PURSUANT TO SECTION FORTY-FOUR HUNDRED SIXTEEN OF THE PUBLIC HEALTH LAW, (B) MONEYS TRANSFERRED TO SUCH FUND PURSUANT TO LAW, AND (C) CONTRIBUTIONS, CONSISTING OF GRANTS OF ANY MONEY, INCLUDING GRANTS OR OTHER FINANCIAL ASSISTANCE FROM ANY AGENCY OF GOVERNMENT OR ANY OTHER SOURCE, TO BE PAID INTO THIS FUND. 3. MONEYS IN THE HEALTH CARE TRANSFORMATION FUND SHALL BE KEPT SEPA- RATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE. 4. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, MONEYS OF THE HEALTH CARE TRANSFORMATION FUND SHALL BE AVAILABLE FOR TRANSFER TO ANY OTHER FUND OF THE STATE AS AUTHORIZED AND DIRECTED BY THE DIRECTOR OF THE BUDGET TO SUPPORT HEALTH CARE DELIVERY, INCLUDING FOR CAPITAL INVESTMENT, DEBT RETIREMENT OR RESTRUCTURING, HOUSING AND OTHER SOCIAL DETERMINANTS OF HEALTH, OR TRANSITIONAL OPERATING SUPPORT TO HEALTH CARE PROVIDERS. 5. WITHIN FIFTEEN DAYS AFTER EXECUTING OR MODIFYING AN ALLOCATION, TRANSFER, DISTRIBUTION OR OTHER USE OF THE HEALTH CARE TRANSFORMATION FUND, THE COMMISSIONER SHALL PROVIDE WRITTEN NOTICE TO THE CHAIRS OF THE SENATE FINANCE COMMITTEE, THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE SENATE AND ASSEMBLY INSURANCE COMMITTEES, AND THE SENATE AND ASSEMBLY HEALTH COMMITTEES. SUCH NOTICE SHALL INCLUDE, BUT SHALL NOT BE LIMITED S. 7509--C 154 A. 9509--C TO, INFORMATION ON THE AMOUNT, DATE, AND PURPOSE OF THE ALLOCATION, TRANSFER, DISTRIBUTION, OR OTHER USE, AND THE METHODOLOGY USED TO DISTRIBUTE THE MONEYS. 6. THE DIRECTOR OF THE BUDGET SHALL PROVIDE QUARTERLY REPORTS TO THE CHAIR OF THE SENATE FINANCE COMMITTEE AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE ON THE RECEIPTS AND DISTRIBUTIONS OF THE HEALTH CARE TRANSFORMATION FUND, INCLUDING AN ITEMIZATION OF SUCH RECEIPTS AND DISBURSEMENTS, THE HISTORICAL AND PROJECTED EXPENDITURES, AND THE PROJECTED FUND BALANCE. § 2. This act shall take effect immediately. SUBPART B Section 1. The public health law is amended by adding a new section 4416 to read as follows: § 4416. EXCESS RESERVES OF CERTAIN HEALTH MAINTENANCE ORGANIZATIONS. 1. THE COMMISSIONER IS AUTHORIZED TO REQUIRE ANY COMPREHENSIVE HEALTH SERVICES PLAN ISSUED A SPECIAL PURPOSE CERTIFICATE OF AUTHORITY UNDER SECTION FORTY-FOUR HUNDRED THREE-A OF THIS ARTICLE, THAT SATISFIES THE DEFINITION OF CORPORATION IN SUBPARAGRAPH FIVE OF PARAGRAPH (A) OF SECTION ONE HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW OR IS EXEMPT FROM TAXATION UNDER SECTION 501 OF THE INTERNAL REVENUE CODE OF 1986 TO SUBMIT ALL FINANCIAL AND OTHER BOOKS AND RECORDS THE COMMISSION- ER DEEMS NECESSARY IN ORDER TO EVALUATE AN ORGANIZATION'S RESERVES. THE COMMISSIONER, IN CONSULTATION WITH THE SUPERINTENDENT OF THE DEPARTMENT OF FINANCIAL SERVICES, SHALL EXAMINE SUCH BOOKS AND RECORDS AND SHALL ISSUE A REPORT ON THE HEALTH MAINTENANCE ORGANIZATION'S RESERVES. A REQUEST UNDER THIS SECTION MAY BE MADE NO MORE THAN TWO TIMES PER YEAR PER PLAN. 2. EXCEPT FOR ANY PUBLIC BENEFIT CORPORATION, THE COMMISSIONER IS AUTHORIZED TO PROMULGATE REGULATIONS ESTABLISHING A PRESUMPTIVE RESERVE CEILING FOR ANY COMPREHENSIVE HEALTH SERVICES PLAN ISSUED A SPECIAL PURPOSE CERTIFICATE OF AUTHORITY UNDER SECTION FORTY-FOUR HUNDRED THREE-A OF THIS ARTICLE THAT SATISFIES THE DEFINITION OF CORPORATION IN SUBPARAGRAPH FIVE OF PARAGRAPH (A) OF SECTION ONE HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW OR THAT IS EXEMPT FROM TAXATION UNDER SECTION 501 OF THE INTERNAL REVENUE CODE OF 1986. SUCH REGULATIONS SHALL EXPRESS THE PRESUMPTIVE RESERVE CEILING AS A PERCENTAGE OF THE MINIMUM CONTINGENT RESERVES APPLICABLE TO SUCH HEALTH MAINTENANCE ORGANIZATIONS. THE PRESUMPTIVE RESERVE CEILING SHALL BE NO LESS THAN ONE HUNDRED FIFTY PERCENT OF THE MINIMUM CONTINGENT RESERVES APPLICABLE TO SUCH PLANS. IN THE EVENT THAT THE COMMISSIONER DETERMINES THAT A PLAN SUBJECT TO THIS SUBDIVISION HAS RESERVES IN EXCESS OF THE PRESUMPTIVE RESERVE CEILING FOR TWO CONSECUTIVE QUARTERS, THE COMMISSIONER MAY MAKE A PRELIMINARY DETERMINATION THAT ALL OR A PORTION OF SUCH RESERVES IN EXCESS OF THE CEILING SHOULD BE REDEPLOYED BY DEPOSITING SUCH EXCESS RESERVES IN THE HEALTH CARE TRANSFORMATION FUND PURSUANT TO SUBDIVISION THREE OF THIS SECTION. PRIOR TO MAKING A PRELIMINARY DETERMINATION, THE COMMISSIONER SHALL CONSIDER WHETHER SUCH REDEPLOYMENT IS CONSISTENT WITH FINANCIAL SOUNDNESS AND EFFICIENCY AND TO THE EXTENT TO WHICH SUCH RESERVES ARE BEING MAINTAINED CONSISTENT WITH THE PROGRAMMATIC GOALS OF THE STATE. UPON MAKING SUCH A PRELIMINARY DETERMINATION, THE DEPARTMENT SHALL NOTI- FY THE PLAN AND THE PLAN SHALL BE AFFORDED AN OPPORTUNITY TO SUBMIT INFORMATION TO THE DEPARTMENT TO JUSTIFY WHY SUCH RESERVES IN EXCESS OF THE CEILING ARE NECESSARY AND SHOULD NOT BE SO REDEPLOYED. PROVIDED S. 7509--C 155 A. 9509--C HOWEVER, UNDER NO CIRCUMSTANCES SHALL THE REDEPLOYMENT OF SUCH RESERVES FOR ANY PLAN EXCEED SEVEN HUNDRED AND FIFTY MILLION DOLLARS ANNUALLY. 3. IF, AFTER CONSIDERING THE INFORMATION SUBMITTED BY THE PLAN, THE COMMISSIONER ADHERES TO THE PRELIMINARY DETERMINATION THAT THE RESERVES IN EXCESS OF THE CEILING SHOULD BE REDEPLOYED, THE COMMISSIONER SHALL DIRECT THAT SUCH RESERVES BE DEPOSITED TO THE HEALTH CARE TRANSFORMATION FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-HH OF THE STATE FINANCE LAW OR ITS SUCCESSOR TO BE USED FOR INVESTMENT IN THE TRANSFORMATION OF HEALTH CARE DELIVERY, INCLUDING FOR CAPITAL INVESTMENT, DEBT RETIREMENT OR RESTRUCTURING, HOUSING AND OTHER SOCIAL DETERMINANTS OF HEALTH, OR TRANSITIONAL OPERATING SUPPORT TO HEALTH CARE PROVIDERS, PURSUANT TO A PLAN PREPARED BY THE COMMISSIONER AND APPROVED BY THE DIRECTOR OF THE DIVISION OF THE BUDGET. 4. NOTWITHSTANDING ANY LAW TO THE CONTRARY, ON OR AFTER AUGUST FIRST, TWO THOUSAND EIGHTEEN NO ENTITY SUBJECT TO SUBDIVISION TWO OF THIS SECTION SHALL TRANSFER OR LOAN ANY FUNDS TO ANY SUBSIDIARY OR MEMBER OF THE ENTITY'S HOLDING COMPANY SYSTEM OR TO A MEMBER OR STOCKHOLDER WHERE A PURPOSE OF THE TRANSFER OR LOAN IS TO AVOID THE APPLICATION OF THIS SECTION. § 2. This act shall take effect August 1, 2018 and shall expire and be deemed repealed August 1, 2023, but, shall not apply to any entity or any subsidiary or affiliate of such entity that disposes of all or a material portion of its assets pursuant to a transaction that: (1) was the subject of a request for regulatory approval first made to the commissioner of health between January 1, 2017, and December 31, 2017; and (2) receives regulatory approval from the commissioner of health prior to July 31, 2018. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A and B of this Part shall be as specifically set forth in the last section of such Subparts. PART GGG Section 1. The opening paragraph of subdivision 3 of section 5-a of the legislative law, as amended by section 1 of part S of chapter 57 of the laws of 2016, is amended to read as follows: Any member of the assembly serving in a special capacity in a position set forth in the following schedule shall be paid the allowance set forth in such schedule only for the legislative term commencing January first, two thousand [seventeen] NINETEEN and terminating December thir- ty-first, two thousand [eighteen] TWENTY: § 2. Section 13 of chapter 141 of the laws of 1994, amending the legislative law and the state finance law relating to the operation and administration of the legislature, as amended by section 1 of part CC of chapter 55 of the laws of 2017, is amended to read as follows: § 13. This act shall take effect immediately and shall be deemed to have been in full force and effect as of April 1, 1994, provided that, S. 7509--C 156 A. 9509--C the provisions of section 5-a of the legislative law as amended by sections two and two-a of this act shall take effect on January 1, 1995, and provided further that, the provisions of article 5-A of the legisla- tive law as added by section eight of this act shall expire June 30, [2018] 2019 when upon such date the provisions of such article shall be deemed repealed; and provided further that section twelve of this act shall be deemed to have been in full force and effect on and after April 10, 1994. § 3. This act shall take effect immediately, provided, however, if section two of this act shall take effect on or after June 30, 2018 section two of this act shall be deemed to have been in full force and effect on and after June 30, 2018. PART HHH Section 1. There is hereby established a compensation committee to examine, evaluate and make recommendations with respect to adequate levels of compensation, non-salary benefits, and allowances pursuant to section 5-a of the legislative law, for members of the legislature, statewide elected officials, and those state officers referred to in section 169 of the executive law. The committee shall be comprised of the chief judge of the state of New York, the comptroller of the state of New York, the chairman of the State University of New York board of trustees and 52nd comptroller for the state of New York, the comptroller for the city of New York, and the chairman of the city university of New York board of trustees and 42nd comptroller for the city of New York. § 2. 1. In accordance with the provisions of this act, the committee shall examine the prevailing adequacy of pay levels, allowances pursuant to section 5-a of the legislative law, and other non-salary benefits, for members of the legislature, statewide elected officials, and those state officers referred to in section 169 of the executive law. 2. The committee shall determine whether, on January 1, 2019, the annual salary and allowances of members of the legislature, statewide elected officials, and salaries of state officers referred to in section 169 of the executive law, warrant an increase. 3. In discharging its responsibilities under subdivision two of this section, the committee shall take into account all appropriate factors including, but not limited to: the parties' performance and timely fulfillment of their statutory and Constitutional responsibilities; the overall economic climate; rates of inflation; changes in public-sector spending; the levels of compensation and non-salary benefits received by executive branch officials and legislators of other states and of the federal government; the levels of compensation and non-salary benefits received by comparable professionals in government, academia and private and nonprofit enterprise; the ability to attract talent in competition with comparable private sector positions; and the state's ability to fund increases in compensation and non-salary benefits. 4. a. The committee may implement cost-of-living adjustments that apply annually and/or phase-in salary adjustments annually for 3 years, provided that no such adjustment shall be implemented beyond January 1, 2021. b. Any phase-in of a salary increase or cost of living adjustment will be conditioned upon performance of the executive and legislative branch and upon the timely legislative passage of the budget for the preceding year. S. 7509--C 157 A. 9509--C c. For purposes of paragraph b of this subdivision, the term "legisla- tive passage of the budget" shall have the same meaning as defined in subdivision 3 of section 5 of the legislative law. § 3. 1. The committee shall only meet within the state and must hold at least one hearing at which the public will be afforded an opportunity to provide comments. The committee may hold additional public hearings as it deems necessary. Such additional hearings, if any, may allow for a public comment period. 2. The members of the committee shall receive no compensation for their services but shall be allowed their actual and necessary expenses incurred in the performance of their duties hereunder. Nothing contained herein shall prohibit a member of the committee from receiving his or her salary earned by reason of their state employee position. The members of the committee shall perform the duties herein personally, no delegation of authority or attendance is allowed. 3. No member of the committee shall be disqualified from holding any other public office or employment, nor shall he or she forfeit any such office or employment by reason of his or her appointment pursuant to this section, notwithstanding the provisions of any general, special or local law, regulation, ordinance or city charter. 4. To the maximum extent feasible, the committee shall be entitled to request and receive and shall utilize and be provided with such facili- ties, resources and data of any court, department, division, board, bureau, committee, agency or public authority of the state or any poli- tical subdivision thereof as it may reasonably request to properly carry out its powers and duties pursuant to this act. 5. The committee may request, and shall receive, reasonable assistance from state agency personnel as is necessary for the performance of its function. § 4. 1. The committee shall make a report to the governor and the legislature of its findings, conclusions, determinations and recommenda- tions, if any, and should submit such report by December 10, 2018. Any findings, conclusions, determinations and recommendations in the report must be adopted by a majority vote of the committee. Each member of the committee shall report their vote and describe their reasoning for their determination. 2. Each recommendation made to implement a determination pursuant to section two of this act shall have the force of law, and shall super- sede, where appropriate, inconsistent provisions of section 169 of the executive law, and sections 5 and 5-a of the legislative law, unless modified or abrogated by statute prior to January first of the year as to which such determination applies to legislative and executive compen- sation. § 5. Date of entitlement to salary increase. Notwithstanding the provisions of this act or of any other law, each phase of an increase in salary or compensation of any member, official, or officer provided for by this act shall be added to the salary or compensation of such member, statewide elected official, or officer at the beginning of that payroll period the first day of which is nearest to, but not prior to, the effective date of such increase as provided in this act. The annual salaries as prescribed pursuant to this act, whenever adjusted pursuant to the provisions of this act, shall be rounded to the nearest multiple of one hundred dollars. § 6. Notwithstanding Part E of chapter 60 of the laws of 2015, the committee established pursuant to this act, while in existence, shall make all determinations of legislative salaries and allowances and sala- S. 7509--C 158 A. 9509--C ries of statewide elected officials and those officers referred to in section 169 of the executive law. Upon the repeal of the committee created by this act, the commission established under Part E of chapter 60 of the laws of 2015 shall resume its responsibility to review and examine such salaries and allowances in accordance with the terms of such Part E. § 7. This act shall take effect immediately and shall expire and be deemed repealed December 31, 2018; provided, however, any recommenda- tions of the committee that have been determined prior to such date, including 3 annual cost of living or salary adjustments, shall continue to be in effect until amended or repealed by a subsequent recommendation of the commission on legislative, judicial and executive compensation or by passage of a new statute. PART III Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, is amended to read as follows: § 5. This act shall take effect immediately, provided that section two of this act shall take effect on January 1, 2015, and shall apply to taxable years beginning on or after January 1, 2015, with respect to "qualified production expenditures" and "transportation expenditures" paid or incurred on or after such effective date, regardless of whether the production of the qualified musical or theatrical production commenced before such date, provided further that this act shall expire and be deemed repealed [4] 8 years after such date. § 2. This act shall take effect immediately. PART JJJ Section 1. Short title. This act shall be known an may be cited as the "Democracy Protection Act". § 2. Section 14-100 of the election law is amended by adding a new subdivision 17 to read as follows: 17. "FOREIGN NATIONAL" MEANS FOREIGN NATIONAL AS SUCH TERM IS DEFINED BY SUBSECTION (B) OF SECTION 30121 OF TITLE 52 OF THE UNITED STATES CODE. § 3. Section 14-106 of the election law, as amended by section 3 of subpart C of part H of chapter 55 of the laws of 2014, is amended to read as follows: § 14-106. Political communication. The statements required to be filed under the provisions of this article next succeeding a primary, general or special election shall be accompanied by a copy of all broadcast, cable or satellite schedules and scripts, [internet] PAID INTERNET OR DIGITAL, print and other types of advertisements, pamphlets, circulars, flyers, brochures, letterheads and other printed matter purchased or produced, and reproductions of statements or information published to five hundred or more members of a general public audience by computer or other electronic device including but not limited to electronic mail or text message, purchased in connection with such election by or under the authority of the person filing the statement or the committee or the person on whose behalf it is filed, as the case may be. Such copies, schedules and scripts shall be preserved by the officer with whom or the board with which it is required to be filed for a period of one year from the date of filing thereof. S. 7509--C 159 A. 9509--C § 4. Paragraph (a) of subdivision 1 of section 14-107 of the election law, as amended by section 1 of part A of chapter 286 of the laws of 2016, is amended to read as follows: (a) "Independent expenditure" means an expenditure made by an inde- pendent expenditure committee [conveyed to five hundred or more members of a general public audience] in the form of (i) an audio or video communication via broadcast, cable or satellite, (ii) a written communi- cation via advertisements, pamphlets, circulars, flyers, brochures, letterheads or (iii) other published statements, WHERE SUCH EXPENDITURE IS CONVEYED TO FIVE HUNDRED OR MORE MEMBERS OF A GENERAL PUBLIC AUDI- ENCE, OR IN THE FORM OF ANY PAID INTERNET OR DIGITAL ADVERTISEMENT TARGETED TO FIFTY OR MORE MEMBERS OF A GENERAL PUBLIC AUDIENCE, which: (i) irrespective of when such communication is made, contains words such as "vote," "oppose," "support," "elect," "defeat," or "reject," which call for the election or defeat of the clearly identified candidate, (ii) refers to and advocates for or against a clearly identified candi- date or ballot proposal on or after January first of the year of the election in which such candidate is seeking office or such proposal shall appear on the ballot, or (iii) within sixty days before a general or special election for the office sought by the candidate or thirty days before a primary election, includes or references a clearly identi- fied candidate. An independent expenditure shall not include communi- cations where such candidate, the candidate's political committee or its agents, a party committee or its agents, or a constituted committee or its agents or a political committee formed to promote the success or defeat of a ballot proposal or its agents, did authorize, request, suggest, foster or cooperate in such communication. § 5. Subdivision 2 of section 14-107 of the election law, as amended by section 2 of part A of chapter 286 of the laws of 2016, is amended to read as follows: 2. Whenever any person makes an independent expenditure [that costs one thousand dollars or more in the aggregate], such communication shall clearly state the name of the person who paid for, or otherwise published or distributed the communication and state, with respect to communications regarding candidates, that the communication was not expressly authorized or requested by any candidate, or by any candi- date's political committee or any of its agents. § 6. The opening paragraph of subdivision 3 of section 14-107 of the election law, as amended by section 3 of part A of chapter 286 of the laws of 2016, is amended to read as follows: Any person prior to making any independent expenditure shall first register with the state board of elections as a political committee and as an independent expenditure committee in conformance with this article PROVIDED, HOWEVER, THAT NO FOREIGN NATIONAL, GOVERNMENT, INSTRUMENTALITY OR AGENT MAY REGISTER AS AN INDEPENDENT EXPENDITURE COMMITTEE FOR THE PURPOSE OF MAKING INDEPENDENT EXPENDITURES IN ANY STATE OR LOCAL ELECTION. Such person shall comply with all disclosure obligations required for political committees by law and shall provide the following additional information upon registration: § 7. Subparagraph (i) of paragraph (a) of subdivision 4 of section 14-107 of the election law, as added by section 4 of part A of chapter 286 of the laws of 2016, is amended to read as follows: (i) Any independent expenditure committee who has registered pursuant to subdivision three of this section shall disclose to the state board of elections electronically, once a week on Monday any contribution to such committee of one thousand dollars or more [or], ANY expenditures, S. 7509--C 160 A. 9509--C EXCEPT PAID INTERNET AND DIGITAL ADVERTISEMENTS, MADE by such [person] COMMITTEE over five thousand dollars, AND ANY INDEPENDENT EXPENDITURE IN THE FORM OF A PAID INTERNET OR DIGITAL ADVERTISEMENT OVER FIVE HUNDRED DOLLARS made during the reporting period. § 8. Subparagraph (ii) of paragraph (a) of subdivision 4 of section 14-107 of the election law, as added by section 4 of part A of chapter 286 of the laws of 2016, is amended to read as follows: (ii) Any independent expenditure committee who has registered with the state board of elections pursuant to subdivision three of this section shall disclose to the state board of elections electronically, within twenty-four hours [of receipt], any contribution to such independent expenditure committee of one thousand dollars or more OR EXPENDITURE MADE BY SUCH COMMITTEE OVER FIVE THOUSAND DOLLARS made within thirty days before any primary, general, or special election. § 9. Subdivision 5 of section 14-107 of the election law, as added by section 4 of subpart C of part H of chapter 55 of the laws of 2014, is amended to read as follows: 5. A copy of all political communications paid for by the independent expenditure, including but not limited to broadcast, cable or satellite schedules and scripts, advertisements, pamphlets, circulars, flyers, brochures, letterheads and other printed matter and statements or infor- mation conveyed to one thousand or more members of a general public audience by computer or other electronic devices, AND PAID INTERNET OR DIGITAL ADVERTISEMENTS, shall be filed with the state board of elections with the statements required by this section. § 10. Section 14-107 of the election law is amended by adding a new subdivision 5-a to read as follows: 5-A. THE STATE BOARD OF ELECTIONS SHALL MAINTAIN AND MAKE AVAILABLE ONLINE FOR PUBLIC INSPECTION IN A MACHINE READABLE FORMAT, A COMPLETE RECORD OF ANY INDEPENDENT EXPENDITURE IN THE FORM OF A PAID INTERNET OR DIGITAL ADVERTISEMENT REQUIRED TO BE FILED UNDER SUBDIVISION FIVE OF THIS SECTION. THE RECORD SHALL BE MAINTAINED FOR A PERIOD NO LESS THAN FIVE YEARS FROM THE DATE OF FILING AND CONTAIN A DIGITAL COPY OF THE INDEPENDENT EXPENDITURE AND THE INFORMATION PROVIDED ON THE REGISTRATION FORM OF THE INDEPENDENT EXPENDITURE COMMITTEE MAKING SUCH EXPENDITURE PURSUANT TO PARAGRAPHS (A) AND (B) OF SUBDIVISION THREE OF THIS SECTION. THE STATE BOARD OF ELECTIONS SHALL PROMULGATE RULES NECESSARY TO COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION WHICH SHALL BE EFFECTIVE NO LATER THAN ONE HUNDRED TWENTY DAYS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION. § 11. The election law is amended by adding a new section 14-107-b to read as follows: § 14-107-B. INDEPENDENT EXPENDITURE VERIFICATION. 1. UPON THE PURCHASE OF A COMMUNICATION IN THE FORM OF AN INDEPENDENT EXPENDITURE, AS DEFINED IN SECTION 14-107 OF THIS ARTICLE, EACH TELEVISION OR RADIO BROADCAST STATION, PROVIDER OF CABLE OR SATELLITE TELEVISION, OR ONLINE PLATFORM SHALL REQUIRE THAT THE INDEPENDENT EXPENDITURE COMMITTEE MAKING SUCH PURCHASE FILE WITH SUCH STATION, PROVIDER OR PLATFORM A COPY OF THE REGISTRATION FORM FILED BY SUCH COMMITTEE WITH THE STATE BOARD OF ELECTIONS PURSUANT TO SUBDIVISION THREE OF SECTION 14-107 OF THIS ARTI- CLE. 2. THE STATE BOARD OF ELECTIONS SHALL PROMULGATE REGULATIONS DEFINING THE SCOPE OF THE TERM "ONLINE PLATFORM" AS USED IN THIS SECTION. IN PROMULGATING SUCH REGULATIONS, THE STATE BOARD SHALL TAKE INTO ACCOUNT THE NUMBER OF UNIQUE UNITED STATES VISITORS TO THE PLATFORM AND THE EXTENT TO WHICH THE PLATFORM PUBLISHES PAID INTERNET OR DIGITAL COMMUNI- S. 7509--C 161 A. 9509--C CATIONS. ANY PUBLIC-FACING WEBSITE, WEB APPLICATION, OR DIGITAL APPLI- CATION, INCLUDING, BUT NOT LIMITED TO, A SOCIAL NETWORK, AD NETWORK, OR SEARCH ENGINE, MAY BE DESIGNATED AN "ONLINE PLATFORM" PURSUANT TO THE STATE BOARD'S REGULATIONS. SUCH REGULATIONS SHALL BE PROMULGATED NO LATER THAN ONE HUNDRED TWENTY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION. § 12. Subdivision 3 of section 14-126 of the election law, as added by section 6 of subpart C of part H of chapter 55 of the laws of 2014, is amended and a new subdivision 7 is added to read as follows: 3. Any person who falsely identifies or knowingly fails to identify any independent expenditure as required by subdivision two of section 14-107 of this article shall be subject to a civil penalty up to one thousand dollars or up to the cost of the communication, whichever is greater, in a special proceeding or civil action brought by the state board of elections chief enforcement counsel [or imposed directly by the state board of elections] PURSUANT TO PARAGRAPH (A) OF SUBDIVISION FIVE OF SECTION 3-104 OF THIS CHAPTER. For purposes of this subdivision, the term "person" shall mean a person, group of persons, corporation, unin- corporated business entity, labor organization or business, trade or professional association or organization or political committee. 7. ANY ONLINE PLATFORM THAT FAILS TO COMPLY WITH THE REQUIREMENTS OF SECTION 14-107-B OF THIS ARTICLE SHALL BE SUBJECT TO A CIVIL PENALTY UP TO ONE THOUSAND DOLLARS FOR EACH VIOLATION IN A SPECIAL PROCEEDING OR CIVIL ACTION BROUGHT BY THE STATE BOARD OF ELECTIONS CHIEF ENFORCEMENT COUNSEL PURSUANT TO PARAGRAPH (A) OF SUBDIVISION FIVE OF SECTION 3-104 OF THIS CHAPTER. § 13. This act shall take effect immediately and shall apply to all communications made on or after the thirtieth day following the date on which the rules promulgated by the state board of elections pursuant to subdivision 2 of section 14-107-b of this article, as added by section eleven of this act, shall have become effective; provided that, the state board of elections shall notify the legislative bill drafting commission when such rules are promulgated and effective 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 KKK Section 1. This act shall be known and may be cited as the "New York City Rikers Island Jail Complex Replacement act". § 2. For the purposes of this act: (a) "Authorized entity" shall mean the New York City department of design and construction. (b) "Best value" shall mean the basis for awarding contracts for services to a proposer that optimizes quality, cost and efficiency, price and performance criteria, which may include, but is not limited to: (1) The quality of the proposer's performance on previous projects; (2) The timeliness of the proposer's performance on previous projects; (3) The level of customer satisfaction with the proposer's performance on previous projects; (4) The proposer's record of performing previous projects on budget and ability to minimize cost overruns; (5) The proposer's ability to limit change orders; S. 7509--C 162 A. 9509--C (6) The proposer's ability to prepare appropriate project plans; (7) The proposer's technical capacities; (8) The individual qualifications of the proposer's key personnel; (9) The proposer's ability to assess and manage risk and minimize risk impact; (10) The proposer's financial capability; (11) The proposer's ability to comply with applicable requirements, including the provisions of articles 145, 147 and 148 of the education law; (12) The proposer's past record of compliance with federal, state and local laws, rules, licensing requirements, where applicable, and execu- tive orders, including but not limited to compliance with the labor law and other applicable labor and prevailing wage laws, article 15-A of the executive law, and any other applicable laws concerning minority-and women-owned business enterprise participation; (13) The proposer's record of complying with existing labor standards, maintaining harmonious labor relations, and protecting the health and safety of workers and payment of wages above any locally-defined living wage; and (14) A quantitative factor to be used in evaluation of bids or offers for awarding of contracts for bidders or offerers that are certified as minority- or women-owned business enterprises pursuant to article 15-A of the executive law, and certified pursuant to local law as minority- or women-owned business enterprises. Where an agency identifies a quan- titative factor pursuant to this paragraph, the agency must specify that business certified as minority- or women-owned business enterprises pursuant to article 15-A of the executive law as well as those certified as minority- or women-owned business enterprises or pursuant to section thirteen hundred four of the New York City charter are eligible to qual- ify for such factor. Nothing in this paragraph shall be construed as a requirement that such businesses be concurrently certified as minority- or women-owned business enterprises under both article 15-A of the exec- utive law and section 1304 of the New York City charter to qualify for such quantitative factor. (c) "Cost plus" shall mean compensating a contractor for the cost to complete a contract by reimbursing actual costs for labor, equipment and materials plus an additional amount for overhead and profit. (d) "Design-build contract" shall mean a contract for the design and construction of a public work with a single entity, which may be a team comprised of separate entities. (e) "Project labor agreement" shall have the meaning set forth in subdivision 1 of section 222 of the labor law. A project labor agreement shall require participation in apprentice training programs in accord- ance with paragraph (e) of subdivision 2 of such section. (f) "Public work" shall mean a public work in the city of New York related to the following, and shall refer to this public work: for the construction or reconstruction of any new or existing correc- tional facilities by the New York City department of design or construction where such construction or reconstruction is determined necessary for the timely closure of the Rikers Island Jail Complex and where such construction or reconstruction has been approved by majority vote of the New York state commission of correction. § 3. Any contract for a public work undertaken pursuant to a project labor agreement in accordance with section 222 of the labor law may be a design-build contract in accordance with this act. S. 7509--C 163 A. 9509--C § 4. Notwithstanding any general, special or local law, rule or regu- lation to the contrary, including but not limited to article 5-A of the general municipal law, and in conformity with the requirements of this act, for any public work that has an estimated total cost of not less than ten million dollars and is undertaken pursuant to a project labor agreement in accordance with section 222 of the labor law, an authorized entity charged with awarding a contract for public work may use the alternative delivery method referred to as design-build contracts. (a) A contractor selected by such authorized entity to enter into a design-build contract shall be selected through a two-step method, as follows: (1) Step one. Generation of a list of responding entities that have demonstrated the general capability to perform the design-build contract. Such list shall consist of a specified number of responding entities, as determined by an authorized entity, and shall be generated based upon the authorized entity's review of responses to a publicly advertised request for qualifications. The authorized entity's request for qualifications shall include a general description of the public work, the maximum number of responding entities to be included on the list, the selection criteria to be used and the relative weight of each criteria in generating the list. Such selection criteria shall include the qualifications and experience of the design and construction team, organization, demonstrated responsibility, ability of the team or of a member or members of the team to comply with applicable requirements, including the provisions of articles 145, 147, and 148 of the education law, past record of compliance with the labor law, and such other quali- fications the authorized entity deems appropriate, which may include but are not limited to project understanding, financial capability and record of past performance. The authorized entity shall evaluate and rate all responding entities to the request for qualifications. Based upon such ratings, the authorized entity shall list the responding enti- ties that shall receive a request for proposals in accordance with para- graph two of this subdivision. To the extent consistent with applicable federal law, the authorized entity shall consider, when awarding any contract pursuant to this section, the participation of (i) responding entities that are certified as minority- or women-owned business enter- prises pursuant to article 15-A of the executive law, or certified pursuant to local law as minority- or women-owned business enterprises; and (ii) small business concerns identified pursuant to subdivision (b) of section 139-g of the state finance law. (2) Step two. Selection of the proposal which is the best value to the authorized entity. The authorized entity shall issue a request for proposals to the responding entities listed pursuant to paragraph one of this subdivision. If such a responding entity consists of a team of separate entities, the entities that compromise such a team must remain unchanged from the responding entity as listed pursuant to paragraph one of this subdivision unless otherwise approved by the authorized entity. The request for proposals shall set forth the public work's scope of work, and other requirements, as determined by the authorized entity, which may include separate goals for work under the contract to be performed by businesses certified as minority- or women-owned business enterprises pursuant to article 15-A of the executive law, or certified pursuant to local law as minority- or women-owned business enterprises. The request for proposals shall also specify the criteria to be used to evaluate the responses and the relative weight of each of such criteria. Such criteria shall include the proposal's cost, the quality of the S. 7509--C 164 A. 9509--C proposal's solution, the qualifications and experience of the proposer, and other factors deemed pertinent by the authorized entity, which may include, but shall not be limited to, the proposal's manner and schedule of project implementation, the proposer's ability to complete the work in a timely and satisfactory manner, maintenance costs of the completed public work, maintenance of traffic approach, and community impact. Any contract awarded pursuant to this act shall be awarded to a responsive and responsible proposer, which, in consideration of these and other specified criteria deemed pertinent, offers the best value, as deter- mined by the authorized entity. The request for proposals shall include a statement that proposers 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 proposal. Nothing in this subdivision shall be construed to prohibit the authorized entity from negotiating 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 entity's website. (b) An authorized entity awarding a design-build contract to a contractor offering the best value may but shall not be required to use the following types of contracts: (1) A cost-plus not to exceed guaranteed maximum price form of contract in which the authorized entity shall be entitled to monitor and audit all costs. In establishing the schedule and process for determin- ing a guaranteed maximum price, the contract between the authorized 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 of substantial and final completion on which the guaranteed maximum price is based, and (v) Include a schedule of unit prices; or (2) 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 public work. § 5. Any contract entered into pursuant to this act shall include a clause requiring that any professional services regulated by articles 145, 147 and 148 of the education law shall be performed and stamped and sealed, where appropriate, by a professional licensed in accordance with the appropriate articles. § 6. Construction or reconstruction with respect to each contract entered into by an authorized entity pursuant to this act shall be deemed a "public work" to be performed in accordance with the provisions of article 8 of the labor law, as well as subject to sections 200, 240, 241 and 242 of such law and enforcement of prevailing wage requirements pursuant to applicable law or, for projects or public works receiving federal aid, applicable federal requirements for prevailing wage. Any contract entered into pursuant to this act shall include a clause requiring the selected design builder to obligate every tier of contrac- tor working on the public work to comply with the project labor agree- ment referenced in section three of this act, and shall include project S. 7509--C 165 A. 9509--C labor agreement compliance monitoring and enforcement provisions consistent with the applicable project labor agreement. § 7. Each contract entered into by an authorized entity pursuant to this act shall comply with the objectives and goals with regard to minority- and women-owned business enterprises pursuant to, as applica- ble, section 6-129 of the administrative code of the city of New York, or, for projects or public works receiving federal aid, applicable federal requirements for disadvantaged business enterprises or minority- and women-owned business enterprises. § 8. Public works undertaken by an authorized entity pursuant to this act shall be subject to the requirements of article 8 of the environ- mental conservation law, and, where applicable, the requirements of the national environmental policy act. § 9. (a) 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 employees of authorized entities solely in connection with the public works identified in subdivision (f) of section two of this act, shall be preserved and protected. (b) Nothing in this act 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 by existing employees of authorized entities to a contractor. (c) Employees of authorized entities using design-build contracts serving in positions in newly created titles shall be assigned to the appropriate bargaining unit. Nothing contained in this act shall be construed to affect (1) the existing rights of employees of such enti- ties pursuant to an existing collective bargaining agreement, (2) the existing representational relationships among employee organizations representing employees of such entities, or (3) the bargaining relation- ships between such entities and such employee organizations. § 10. The submission of a proposal or responses or the execution of a design-build contract pursuant to this act shall not be construed to be a violation of section 6512 of the education law. § 11. Nothing contained in this act shall limit the right or obli- gation of any authorized entity to comply with the provisions of any existing contract or to award contracts as otherwise provided by law. § 12. Any construction or reconstruction performed pursuant to this act shall be subject to any applicable uniform land use review proce- dures and local zoning requirements. § 13. Before the demolition of any correctional facility located on the Rikers Island Jail Complex, a substitute correctional facility must be identified and if such facility is defined as a public works project pursuant to this act, such public works project must be fully constructed before such demolition may occur. § 14. This act shall take effect immediately and shall expire and be deemed repealed two years after such date, provided that, public works with requests for qualifications issued prior to such repeal shall be permitted to continue under this act notwithstanding such repeal. PART LLL S. 7509--C 166 A. 9509--C Section 1. This act shall be known and may be cited as the "New York city housing authority modernization investment act". § 2. For the purposes of this act: (a) "Authorized entity" shall mean the New York city department of design and construction, and the New York city housing authority. (b) "Best value" shall mean the basis for awarding contracts for services to a proposer that optimizes quality, cost and efficiency, price and performance criteria, which may include, but is not limited to: (1) The quality of the proposer's performance on previous projects; (2) The timeliness of the proposer's performance on previous projects; (3) The level of customer satisfaction with the proposer's performance on previous projects; (4) The proposer's record of performing previous projects on budget and ability to minimize cost overruns; (5) The proposer's ability to limit change orders; (6) The proposer's ability to prepare appropriate project plans; (7) The proposer's technical capacities; (8) The individual qualifications of the proposer's key personnel; (9) The proposer's ability to assess and manage risk and minimize risk impact; (10) The proposer's financial capability; (11) The proposer's ability to comply with applicable requirements, including the provisions of articles 145, 147 and 148 of the education law; (12) The proposer's past record of compliance with federal, state and local laws, rules, licensing requirements, where applicable, and execu- tive orders, including but not limited to compliance with the labor law and other applicable labor and prevailing wage laws, article 15-A of the executive law, and any other applicable laws concerning minority- and women-owned business enterprise participation; (13) The proposer's record of complying with existing labor standards, maintaining harmonious labor relations, and protecting the health and safety of workers and payment of wages above any locally-defined living wage; and (14) A quantitative factor to be used in evaluation of bids or offers for awarding of contracts for bidders or offerers that are certified as minority- or women-owned business enterprises pursuant to article 15-A of the executive law, and certified pursuant to local law as minority- or women-owned business enterprises. Where an agency identifies a quan- titative factor pursuant to this paragraph, the agency must specify that businesses certified as minority- or women-owned business enterprises pursuant to article 15-A of the executive law as well as those certified as minority- or women-owned business enterprises or pursuant to section 1304 of the New York City charter are eligible to qualify for such factor. Nothing in this paragraph shall be construed as a requirement that such businesses be concurrently certified as minority- or women- owned business enterprises under both article 15-A of the executive law and section 1304 of the New York City charter to qualify for such quan- titative factors. Such basis shall reflect, wherever possible, objec- tive and quantifiable analysis. (c) "Cost plus" shall mean compensating a contractor for the cost to complete a contract by reimbursing actual costs for labor, equipment and materials plus an additional amount for overhead and profit. S. 7509--C 167 A. 9509--C (d) "Design-build contract" shall mean a contract for the design and construction of a public work with a single entity, which may be a team comprised of separate entities. (e) "Project labor agreement" shall have the meaning set forth in subdivision 1 of section 222 of the labor law. A project labor agreement shall require participation in apprentice training programs in accord- ance with paragraph (e) of subdivision 2 of such section. (f) "Public work" shall mean a public work in the city of New York related to the following, and shall refer to this public work; the construction or reconstruction of residential properties owned by the New York City housing authority where such construction or recon- struction is required to remediate certain conditions of habitability, including but not limited to, roof repair, lead or mold abatement and remediation, plumbing installation or repair, boiler installation or repair, or any structural repair where such construction or recon- struction is deemed necessary in accordance with the terms of a state declaration of a disaster emergency pursuant to section 402-d of the public housing law. § 3. Any contract for a public work undertaken pursuant to a project labor agreement in accordance with section 222 of the labor law may be a design-build contract in accordance with this act. § 4. Notwithstanding any general, special or local law, rule or regu- lation to the contrary, including but not limited to article 5-A of the general municipal law, section 151 of the public housing law, and in conformity with the requirements of this act, for any public work that is undertaken pursuant to a project labor agreement in accordance with section 222 of the labor law, an authorized entity charged with awarding a contract for public work may use the alternative delivery method referred to as design-build contracts. (a) A contractor selected by such authorized entity to enter into a design-build contract shall be selected through a two-step method, as follows: (1) Step one. Generation of a list of responding entities that have demonstrated the general capability to perform the design-build contract. Such list shall consist of a specified number of responding entities, as determined by an authorized entity, and shall be generated based upon the authorized entity's review of responses to a publicly advertised request for qualifications. The authorized entity's request for qualifications shall include a general description of the public work, the maximum number of responding entities to be included on the list, the selection criteria to be used and the relative weight of each criteria in generating the list. Such selection criteria shall include the qualifications and experience of the design and construction team, organization, demonstrated responsibility, ability of the team or of a member or members of the team to comply with applicable requirements, including the provisions of articles 145, 147, and 148 of the education law, past record of compliance with the labor law, and such other quali- fications the authorized entity deems appropriate, which may include but are not limited to project understanding, financial capability and record of past performance. The authorized entity shall evaluate and rate all responding entities to the request for qualifications. Based upon such ratings, the authorized entity shall list the responding enti- ties that shall receive a request for proposals in accordance with para- graph two of this subdivision. To the extent consistent with applicable federal law, the authorized entity shall consider, when awarding any contract pursuant to this section, the participation of: (i) responding S. 7509--C 168 A. 9509--C entities that are certified as minority- or women-owned business enter- prises pursuant to article 15-A of the executive law, or certified pursuant to local law as minority- or women-owned business enterprises; and (ii) small business concerns identified pursuant to subdivision (b) of section 139-g of the state finance law. (2) Step two. Selection of the proposal which is the best value to the authorized entity. The authorized entity shall issue a request for proposals to the responding entities listed pursuant to paragraph one of this subdivision. If such a responding entity consists of a team of separate entities, the entities that comprise such a team must remain unchanged from the responding entity as listed pursuant to paragraph one of this subdivision unless otherwise approved by the authorized entity. The request for proposals shall set forth the public work's scope of work, and other requirements, as determined by the authorized entity, which may include separate goals for work under the contract to be performed by businesses certified as minority- or women-owned business enterprises pursuant to article 15-A of the executive law, or certified pursuant to local law as minority- or women-owned business enterprises. The request for proposals shall also specify the criteria to be used to evaluate the responses and the relative weight of each of such criteria. Such criteria shall include the proposal's cost, the quality of the proposal's solution, the qualifications and experience of the proposer, and other factors deemed pertinent by the authorized entity, which may include, but shall not be limited to, the proposal's manner and schedule of project implementation, the proposer's ability to complete the work in a timely and satisfactory manner, maintenance costs of the completed public work, maintenance of traffic approach, and community impact. Any contract awarded pursuant to this act shall be awarded to a responsive and responsible proposer, which, in consideration of these and other specified criteria deemed pertinent, offers the best value, as deter- mined by the authorized entity. The request for proposals shall include a statement that proposers 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 proposal. Nothing in this subdivision shall be construed to prohibit the authorized entity from negotiating 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 entity's website. (b) An authorized entity awarding a design-build contract to a contractor offering the best value may but shall not be required to use the following types of contracts: (1) A cost-plus not to exceed guaranteed maximum price form of contract in which the authorized entity shall be entitled to monitor and audit all costs. In establishing the schedule and process for determin- ing a guaranteed maximum price, the contract between the authorized 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 of substantial and final completion on which the guaranteed maximum price is based, and (v) Include a schedule of unit prices; or S. 7509--C 169 A. 9509--C (2) 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 public work. § 5. Any contract entered into pursuant to this act shall include a clause requiring that any professional services regulated by articles 145, 147 and 148 of the education law shall be performed and stamped and sealed, where appropriate, by a professional licensed in accordance with the appropriate articles. § 6. Construction with respect to each contract entered into by an authorized entity pursuant to this act shall be deemed a "public work" to be performed in accordance with the provisions of article 8 of the labor law, as well as subject to sections 200, 240, 241 and 242 of such law and enforcement of prevailing wage requirements pursuant to applica- ble law or, for projects or public works receiving federal aid, applica- ble federal requirements for prevailing wage. Any contract entered into pursuant to this act shall include a clause requiring the selected design builder to obligate every tier of contractor working on the public work to comply with the project labor agreement referenced in section three of this act, and shall include project labor agreement compliance monitoring and enforcement provisions consistent with the applicable project labor agreement. § 7. Each contract entered into by an authorized entity pursuant to this act shall comply with the objectives and goals with regard to minority- and women-owned business enterprises pursuant to, as applica- ble, section 6-129 of the administrative code of the city of New York, or, for projects or public works receiving federal aid, applicable federal requirements for disadvantaged business enterprises or minority- and women-owned business enterprises. § 8. Public works undertaken by an authorized entity pursuant to this act shall be subject to the requirements of article 8 of the environ- mental conservation law, and, where applicable, the requirements of the national environmental policy act. § 9. (a) 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 employees of authorized entities solely in connection with the public works identified in subdivision (f) of section two of this act, shall be preserved and protected. (b) Nothing in this act 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 by existing employees of authorized entities to a contractor. (c) Employees of authorized entities using design-build contracts serving in positions in newly created titles shall be assigned to the appropriate bargaining unit. Nothing contained in this act shall be construed to affect: (1) the existing rights of employees of such enti- ties pursuant to an existing collective bargaining agreement, (2) the existing representational relationships among employee organizations representing employees of such entities, or (3) the bargaining relation- ships between such entities and such employee organizations. S. 7509--C 170 A. 9509--C § 10. The submission of a proposal or responses or the execution of a design-build contract pursuant to this act shall not be construed to be a violation of section 6512 of the education law. § 11. Nothing contained in this act shall limit the right or obli- gation of any authorized entity to comply with the provisions of any existing contract or to award contracts as otherwise provided by law. § 12. This act shall take effect immediately and shall expire and be deemed repealed 2 years after such date, provided that, public works with requests for qualifications issued prior to such repeal shall be permitted to continue under this act notwithstanding such repeal. PART MMM Section 1. This act shall be known and may be cited as the "New York Pennsylvania Station Public Safety Improvements Act". § 2. It is hereby found and declared, that the rail and transportation facility known as New York Pennsylvania Station ("Penn Station") is antiquated, substandard, and inadequate to meet current transportation and public safety needs and presents an unreasonable safety risk to the public; Penn Station serves as a major transportation hub for the Metro- politan Transportation Authority ("MTA"), New York City Transit, Amtrak, the Long Island Railroad, and the New Jersey Transit. It serves hundreds of millions of passengers on an annual basis. Well over 600,000 passen- gers travel through Penn Station on a daily basis. This is more people than travel through LaGuardia, John F. Kennedy International, and Newark Liberty International airports combined. Penn Station is in need of modernization to meet public safety needs. Penn Station is currently overcrowded, hard to navigate, at times often chaotic and has a limited capacity for security and proper policing. Penn Station is in desperate need of more access and egress to allow better entrance and exit capaci- ty and expedited evacuation procedures. In this time of heightened terrorist threats Penn Station needs more controlled points for security monitoring and equipment. Passenger flow and security access must allow manageability in emergency situations. The current situation poses a clear public safety hazard. With the new adjoining Farley Building Moynihan Train Hall soon to be completed, the proposed Gateway Tunnel, and improved Long Island Railroad access the number of commuters enter- ing Penn Station is expected to increase dramatically. § 3. It is further found and declared that such conditions and circum- stances require action to repair or redevelop such facilities into safe, modern, efficient facilities to assure the safety and comfort of travel- ers. Work is currently underway within Penn Station to improve passage- ways, concourses, lighting and amenities. Connections with the new Moynihan Train Hall at Farley are also underway, as well as planning for remaining necessary improvements to access and egress and to the surrounding areas to position such areas to accommodate and attract passengers and evolving technological and business and commercial needs and practices. § 4. This is a pressing public safety and transportation issue and is a major objective for the State to resolve and should be made a top priority. MTA and the New York state urban development corporation ("UDC") should coordinate and consult with community leaders, business groups and federal and city government to design a solution. § 5. The State will provide funds to UDC to begin with the planning of any such redevelopment. § 6. This act shall take effect immediately. S. 7509--C 171 A. 9509--C PART NNN Section 1. Paragraph 34 of subdivision (b) of section 1101 of the tax law, as amended by section 17 of part AAA of chapter 59 of the laws of 2017, 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 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] ANY vehicle with a seating capacity of up to fourteen persons, excluding the driver, AND ANY VEHICLE WITH A SEATING CAPACITY OF BETWEEN FIFTEEN AND TWENTY PERSONS, EXCLUDING THE DRIVER, THAT HAS ONLY TWO AXLES AND FOUR TIRES. "BUS" MEANS ANY MOTOR VEHICLE WITH A SEATING CAPACITY OF AT LEAST FIFTEEN PERSONS, EXCLUDING THE DRIVER, THAT DOES NOT OTHERWISE QUALIFY AS A LIMOUSINE. Black car means a for-hire vehicle dispatched from a central facility. "Affiliated 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 charg- es for service provided by an affiliated livery vehicle are on the basis of flat rate, time, mileage, or zones and not on a garage to garage basis. § 2. The tax law is amended by adding a new article 29-C to read as follows: ARTICLE 29-C CONGESTION SURCHARGE SECTION 1299. DEFINITIONS. 1299-A. IMPOSITION OF TAX. 1299-B. LIABILITY FOR SURCHARGE. 1299-C. REGISTRATION. 1299-D. RETURNS AND PAYMENT OF SURCHARGE. 1299-E. RECORDS TO BE KEPT. 1299-F. SECRECY OF RETURNS AND REPORTS. 1299-G. PRACTICE AND PROCEDURE. 1299-H. DEPOSIT AND DISPOSITION OF REVENUE. S. 7509--C 172 A. 9509--C 1299-I. COOPERATION BY REGULATORY AGENCIES. § 1299. 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) "MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW. (C) "FOR-HIRE VEHICLE" MEANS A MOTOR VEHICLE, OTHER THAN AN AMBULANCE AS DEFINED BY SECTION ONE HUNDRED-B OF THE VEHICLE AND TRAFFIC LAW AND A BUS AS DEFINED IN PARAGRAPH THIRTY-FOUR OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, CARRYING PASSENGERS FOR HIRE. (D) "POOL VEHICLE" MEANS A FOR-HIRE VEHICLE THAT IS AVAILABLE FOR THE SHARED PROVISION OF TRANSPORTATION BY TWO OR MORE PASSENGERS (OR GROUPS OF PASSENGERS) THAT SEPARATELY REQUEST TRANSPORTATION AND (I) ARE EACH CHARGED THE SAME PREDETERMINED AMOUNT PER RIDE, OR (II) ARE EACH BILLED INDEPENDENTLY FOR A RIDE IN AN AMOUNT THAT IS PROPORTIONATE TO THE TRANSPORTATION THEY RECEIVE. (E) "FOR-HIRE TRANSPORTATION TRIP" MEANS TRANSPORTATION PROVIDED IN A FOR-HIRE VEHICLE THAT IS NOT A POOL VEHICLE, REGARDLESS OF THE NUMBER OF STOPS, FOR WHICH A CHARGE IS MADE, BUT SHALL NOT INCLUDE TRANSPORTATION PROVIDED BY, OR PURSUANT TO A CONTRACT WITH, SCHOOL DISTRICTS, OR IN CONNECTION WITH FUNERALS. (F) "CONGESTION ZONE" MEANS THE GEOGRAPHIC AREA OF THE CITY OF NEW YORK, IN THE BOROUGH OF MANHATTAN, SOUTH OF AND EXCLUDING 96TH STREET. (G) "REGULATORY AGENCY" MEANS ANY ENTITY IN THE STATE THAT REGULATES ANY PERSON OR MOTOR VEHICLE INVOLVED IN THE PROVISION OF FOR-HIRE TRANS- PORTATION TRIPS, INCLUDING THE OWNERS, AGENTS AND DRIVERS OF FOR-HIRE VEHICLES. § 1299-A. IMPOSITION OF TAX. (A) IN ADDITION TO ANY OTHER TAX OR ASSESSMENT IMPOSED BY THIS CHAPTER OR OTHER LAW, THERE IS HEREBY IMPOSED, BEGINNING ON JANUARY FIRST, TWO THOUSAND NINETEEN, A SURCHARGE ON FOR-HIRE TRANSPORTATION TRIPS OF TWO DOLLARS AND SEVENTY-FIVE CENTS FOR EACH SUCH TRIP THAT ORIGINATES AND TERMINATES IN THE CONGESTION ZONE, FOR EACH SUCH TRIP THAT ORIGINATES ANYWHERE IN THE STATE AND TERMINATES WITHIN THE CONGESTION ZONE, FOR EACH SUCH TRIP THAT ORIGI- NATES IN THE CONGESTION ZONE AND TERMINATES ANYWHERE IN THIS STATE, AND FOR EACH SUCH TRIP THAT ORIGINATES ANYWHERE IN THE STATE, ENTERS INTO THE CONGESTION ZONE WHILE IN TRANSIT, AND TERMINATES ANYWHERE IN THE STATE. FOR PURPOSES OF THIS SUBSECTION, A FOR-HIRE TRANSPORTATION TRIP SHALL BE DEEMED TO ORIGINATE IN THE CONGESTION ZONE WHEN ANY REQUESTING PASSENGER IS PICKED UP THERE (OR IF THE BILLING FOR THE RIDE, OR ANY PORTION THEREOF, IS COMMENCED THERE), AND IS DEEMED TO TERMINATE IN THE CONGESTION ZONE WHEN ANY REQUESTING PASSENGER IS DROPPED OFF THERE. PROVIDED HOWEVER, IF THE FOR-HIRE TRANSPORTATION TRIP IS PROVIDED BY A FOR-HIRE VEHICLE THAT IS ALSO SUBJECT TO ARTICLE TWENTY-NINE-A OF THIS CHAPTER, EXCLUDING A HAIL VEHICLE AS DEFINED BY SUCH ARTICLE, THE RATE OF SURCHARGE UNDER THIS SUBSECTION SHALL BE TWO DOLLARS AND FIFTY CENTS FOR EACH TRIP. (B) IN ADDITION TO ANY OTHER TAX OR ASSESSMENT IMPOSED BY THIS CHAPTER OR OTHER LAW, BEGINNING ON JANUARY FIRST, TWO THOUSAND NINETEEN, THERE IS HEREBY IMPOSED ON TRANSPORTATION PROVIDED BY POOL VEHICLES A SURCHARGE OF SEVENTY-FIVE CENTS FOR EACH PERSON THAT BOTH ENTERS AND S. 7509--C 173 A. 9509--C EXITS THE POOL VEHICLE IN THE STATE, AND WHO IS PICKED UP IN, DROPPED OFF IN, OR TRAVELS THROUGH THE CONGESTION ZONE. (C) NOTWITHSTANDING THE FOREGOING, THE SURCHARGE IMPOSED BY THIS ARTI- CLE SHALL NOT APPLY TO TRANSPORTATION SERVICES THAT ARE ADMINISTERED BY OR ON BEHALF OF THE METROPOLITAN TRANSPORTATION AUTHORITY, INCLUDING PARATRANSIT SERVICES. (D) RECEIPTS SUBJECT TO TAX UNDER PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE OF THIS CHAPTER, AS WELL AS THE GROSS TRIP FARE OF EVERY TNC PREARRANGED TRIP AS THOSE TERMS ARE DEFINED BY SECTION TWELVE HUNDRED NINETY-ONE OF THIS CHAPTER, SHALL BE DEEMED TO EXCLUDE ANY SURCHARGE IMPOSED BY THIS ARTICLE. § 1299-B. LIABILITY FOR SURCHARGE. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY PERSON THAT DISPATCHES A MOTOR VEHICLE BY ANY MEANS THAT PROVIDES TRANSPORTATION THAT IS SUBJECT TO A SURCHARGE IMPOSED BY THIS ARTICLE, INCLUDING TRANSPORTATION NETWORK COMPANIES AS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW, SHALL BE LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE, EXCEPT THAT IN THE CASE OF TAXICAB TRIPS AND HAIL VEHICLE TRIPS THAT ARE ALSO SUBJECT TO TAX PURSUANT TO ARTICLE TWENTY-NINE-A OF THIS CHAPTER, ONLY THE TAXICAB OWNER OR HAIL BASE LIABLE FOR THAT TAX SHALL BE THE PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE. FOR PURPOSES OF THIS SECTION, THE TERMS "TAXICAB TRIPS," "HAIL VEHICLE TRIPS," "TAXICAB OWNER," AND "HAIL BASE" SHALL HAVE THE SAME MEANING AS THEY DO IN SECTION TWELVE HUNDRED EIGHTY OF THIS CHAPTER. (B) NOTWITHSTANDING ANY LAW TO THE CONTRARY: (1) THE SURCHARGE IMPOSED BY THIS ARTICLE MUST BE PASSED ALONG TO PASSENGERS AND SEPARATELY STATED ON ANY RECEIPT THAT IS PROVIDED TO SUCH PASSENGERS. THE PASSING ALONG OF SUCH SURCHARGE SHALL NOT BE CONSTRUED BY ANY COURT OR ADMINISTRATIVE BODY AS THE IMPOSITION OF THE SURCHARGE ON THE PERSON OR ENTITY THAT PAYS FOR THE FOR-HIRE TRANSPORTATION TRIP. ALL REGULATORY AGENCIES MUST ADJUST ANY FARES THAT ARE AUTHORIZED BY THEM TO INCLUDE THE SURCHARGE IMPOSED BY THIS ARTICLE, AND MUST REQUIRE THAT ANY METER OR OTHER INSTRUMENT USED IN ANY FOR-HIRE VEHICLE REGULATED BY IT TO CALCULATE FARES BE ADJUSTED TO INCLUDE THE SURCHARGE. (2) NEITHER THE FAILURE OF A REGULATORY AGENCY TO ADJUST FARES NOR THE FAILURE TO ADJUST A METER OR OTHER INSTRUMENT USED IN A FOR-HIRE VEHICLE TO CALCULATE FARES SHALL RELIEVE ANY PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE FROM THE OBLIGATION TO PAY SUCH SURCHARGE. § 1299-C. REGISTRATION. (A) EVERY PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL FILE WITH THE COMMISSIONER A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION, IN A FORM PRESCRIBED BY THE COMMISSIONER. SUCH APPLICATION SHALL BE ACCOMPANIED BY A FEE OF ONE DOLLAR AND FIFTY CENTS, AND SHALL SET FORTH THE NAME AND ADDRESS OF THE REGISTRANT, AND ANY OTHER INFORMATION THAT THE COMMIS- SIONER MAY REQUIRE. NOTWITHSTANDING THE FORGOING, ANY PERSON LIABLE FOR A SURCHARGE IMPOSED BY THIS ARTICLE THAT WILL INCUR SUCH LIABILITY NO MORE THAN ONE TIME IN ANY SINGLE CALENDAR MONTH SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH. (B) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE COMMISSIONER SHALL ISSUE A CERTIFICATE OF REGISTRATION TO EACH PERSON THAT APPLIES FOR ONE FOR A SPECIFIED TERM OF NOT LESS THAN THREE YEARS. ANY CERTIF- ICATE OF REGISTRATION REFERRED TO IN THIS PARAGRAPH SHALL BE SUBJECT TO RENEWAL IN ACCORDANCE WITH RULES PROMULGATED BY THE COMMISSIONER, AND UPON THE PAYMENT OF A FEE OF ONE DOLLAR AND FIFTY CENTS. WHETHER OR NOT SUCH CERTIFICATE OF REGISTRATION IS ISSUED FOR A SPECIFIED TERM, IT SHALL BE SUBJECT TO SUSPENSION OR REVOCATION AS PROVIDED FOR IN THIS S. 7509--C 174 A. 9509--C SECTION. EACH CERTIFICATE SHALL STATE THE REGISTRANT, THE REGISTRANT'S TAXPAYER ID NUMBER, AND VEHICLE (OR VEHICLES) IT IS APPLICABLE TO. CERTIFICATES OF REGISTRATION ISSUED PURSUANT TO THIS ARTICLE SHALL BE NON-ASSIGNABLE AND NON-TRANSFERABLE, AND SHALL BE SURRENDERED TO THE COMMISSIONER IMMEDIATELY UPON THE REGISTRANT'S CEASING TO DO BUSINESS AT THE ADDRESS PROVIDED IN ITS APPLICATION, UNLESS THE REGISTRANT AMENDS ITS CERTIFICATE OF REGISTRATION IN ACCORDANCE WITH RULES PROMULGATED BY THE COMMISSIONER. ALL REGISTRANTS MUST NOTIFY THE COMMISSIONER OF CHANG- ES TO ANY OF THE INFORMATION STATED ON THEIR CERTIFICATE OF REGISTRA- TION, INCLUDING VEHICLE CHANGES, IF ANY, ON A CALENDAR QUARTERLY BASIS, AND SHALL AMEND THEIR CERTIFICATES OF REGISTRATION ACCORDINGLY. (C) (1) THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGIS- TRATION TO A PERSON, OR MAY SUSPEND OR REVOKE A CERTIFICATE OF REGISTRA- TION THAT WAS ISSUED TO A PERSON, PURSUANT TO THIS SECTION UPON FINDING THAT: (I) SUCH PERSON FAILED TO PAY ANY MONIES THAT ARE FINALLY DETER- MINED TO BE DUE FOR ANY TAX OR IMPOSITION THAT IS ADMINISTERED BY THE COMMISSIONER; (II) SUCH PERSON FAILED TO FILE ANY REPORT OR RETURN THAT IS DUE FROM IT UNDER THIS CHAPTER; (III) SUCH PERSON WILLFULLY FILED A FALSE REPORT, RETURN OR OTHER DOCUMENT DUE UNDER THIS CHAPTER; (IV) SUCH PERSON WILLFULLY VIOLATED ANY PROVISION OF THIS ARTICLE, OR ANY RULE OR REGULATION OF THE COMMISSIONER PROMULGATED UNDER THIS ARTICLE; OR (V) A CERTIFICATE OF REGISTRATION ISSUED PURSUANT TO THIS SECTION TO SUCH PERSON, OR TO ANY BUSINESS OR ENTITY UNDER CONTROL OF SUCH PERSON, OR THAT IS SUBJECT TO SUBSTANTIALLY THE SAME OWNERSHIP, DIRECTION OR CONTROL OF SUCH PERSON, HAS BEEN REVOKED OR SUSPENDED WITHIN ONE YEAR FROM THE DATE ON WHICH A CERTIFICATE OF REGISTRATION IS FILED. (2) A NOTICE OF PROPOSED REVOCATION, SUSPENSION OR REFUSAL TO ISSUE SHALL BE GIVEN TO THE PERSON THAT APPLIES FOR A CERTIFICATE OF REGISTRA- TION PURSUANT TO THIS SECTION IN THE MANNER PRESCRIBED FOR A NOTICE OF DEFICIENCY IN SUBSECTION (A) OF SECTION ONE THOUSAND EIGHTY-ONE OF THIS CHAPTER, AND EXCEPT AS OTHERWISE PROVIDED HEREIN, ALL THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER APPLICABLE TO A NOTICE OF DEFICIEN- CY SHALL APPLY TO A NOTICE ISSUED PURSUANT TO THIS PARAGRAPH, INSOFAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO SUCH NOTICE, AND WITH SUCH MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT THE LANGUAGE OF SUCH PROVISIONS TO THE NOTICE AUTHORIZED BY THIS PARAGRAPH. ALL NOTICES OF PROPOSED REVOCATION, SUSPENSION OR REFUSAL TO ISSUE SHALL CONTAIN A STATEMENT ADVISING THE PERSON TO WHOM IT IS ISSUED THAT THE SUSPENSION, REVOCATION OR REFUSAL TO ISSUE MAY BE CHALLENGED THROUGH A HEARING PROC- ESS AND THAT THE PETITION FOR SUCH CHALLENGE MUST BE FILED WITH THE DIVISION OF TAX APPEALS WITHIN NINETY DAYS AFTER THE GIVING OF SUCH NOTICE. (3) IN THE CASE OF A PROPOSED REVOCATION OR SUSPENSION, NOTICE OF SUCH MUST BE GIVEN TO A PERSON WITHIN THREE YEARS FROM THE DATE OF THE ACT OR OMISSION DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION, EXCEPT THAT IN THE CASE OF ACTS INVOLVING FALSITY OR FRAUD, SUCH NOTICE MAY BE ISSUED AT ANY TIME. (4) IN ANY OF THE FOREGOING INSTANCES WHERE THE COMMISSIONER MAY SUSPEND OR REVOKE OR REFUSE TO ISSUE A CERTIFICATE OF REGISTRATION, THE COMMISSIONER MAY CONDITION THE RETENTION OR ISSUANCE OF A CERTIFICATE OF REGISTRATION UPON THE FILING OF A BOND OR THE DEPOSIT OF TAX IN THE MANNER PROVIDED IN PARAGRAPH TWO OR THREE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER. (D) IF THE COMMISSIONER CONSIDERS IT NECESSARY FOR THE PROPER ADMINIS- TRATION OF THE SURCHARGE IMPOSED BY THIS ARTICLE, HE OR SHE MAY REQUIRE EVERY PERSON WHO HOLDS A CERTIFICATE OF REGISTRATION ISSUED PURSUANT TO S. 7509--C 175 A. 9509--C THIS SECTION TO APPLY FOR A NEW CERTIFICATE OF REGISTRATION IN SUCH FORM AND AT SUCH TIME AS THE COMMISSIONER MAY PRESCRIBE, AND TO SURRENDER EACH PREVIOUSLY ISSUED CERTIFICATE OF REGISTRATION. THE COMMISSIONER MAY REQUIRE SUCH FILING AND SUCH SURRENDER NOT MORE OFTEN THAN ONCE EVERY THREE YEARS. UPON THE FILING OF AN APPLICATION FOR A NEW CERTIFICATE OF REGISTRATION AND THE SURRENDER OF ALL PREVIOUS SUCH CERTIFICATES, THE COMMISSIONER SHALL ISSUE, WITHIN SUCH TIME AS THE COMMISSIONER MAY PRESCRIBE, A NEW CERTIFICATE OF REGISTRATION, WITHOUT CHARGE, TO EACH REGISTRANT. § 1299-D. RETURNS AND PAYMENT OF SURCHARGE. (A) EVERY PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL FILE A RETURN WITH THE COMMISSIONER ON A MONTHLY BASIS. EACH RETURN SHALL SHOW THE NUMBER OF FOR-HIRE TRANSPORTATION TRIPS, OR THE NUMBER OF POOL VEHICLE PASSENGERS, SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE MONTH FOR WHICH THE RETURN IS FILED, ALONG WITH SUCH OTHER INFORMATION AS THE COMMIS- SIONER MAY REQUIRE. THE RETURNS REQUIRED BY THIS SECTION SHALL BE FILED WITHIN TWENTY DAYS AFTER THE END OF THE MONTH COVERED THEREBY. IF THE COMMISSIONER DEEMS IT NECESSARY TO ENSURE THE PAYMENT OF THE SURCHARGE IMPOSED BY THIS ARTICLE, HE OR SHE MAY REQUIRE RETURNS TO BE MADE FOR SHORTER PERIODS THAN PRESCRIBED BY THE FOREGOING PROVISIONS OF THIS SECTION, AND UPON SUCH DATES AS MAY BE SPECIFIED. THE FORM OF RETURNS SHALL BE PRESCRIBED BY THE COMMISSIONER AND SHALL CONTAIN SUCH INFORMA- TION AS THE COMMISSIONER MAY DEEM NECESSARY FOR THE PROPER ADMINIS- TRATION OF THIS ARTICLE. THE COMMISSIONER MAY REQUIRE THAT RETURNS BE FILED ELECTRONICALLY. (B) EVERY PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF ALL SURCHARGES DUE UNDER THIS ARTICLE. SUCH AMOUNT SHALL BE DUE AND PAYABLE 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 FOR-HIRE TRIPS ARE SUBJECT THE SURCHARGE, OR THE CORRECT SURCHARGE AMOUNT DUE THEREON. THE COMMISSIONER MAY REQUIRE THAT THE SURCHARGE BE PAID ELEC- TRONICALLY. (C) IN ADDITION TO ANY OTHER PENALTY OR INTEREST PROVIDED FOR UNDER THIS ARTICLE OR OTHER LAW, AND UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT, ANY PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE THAT FAILS TO PAY SUCH SURCHARGE WHEN DUE SHALL BE LIABLE FOR A PENALTY IN AN AMOUNT EQUAL TO TWO HUNDRED PERCENT OF THE TOTAL SURCHARGE AMOUNT THAT IS DUE. § 1299-E. RECORDS TO BE KEPT. EVERY PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL KEEP, AND SHALL MAKE AVAILABLE FOR REVIEW UPON DEMAND BY THE COMMISSIONER: (1) RECORDS OF EVERY TRIP PROVIDED OR ARRANGED BY SUCH PERSON, OR PROVIDED THROUGH THE USE OF A FOR-HIRE VEHICLE OWNED OR LEASED BY SUCH PERSON, INCLUDING ALL AMOUNTS PAID, CHARGED OR DUE THEREON, IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE; (2) TRUE AND COMPLETE COPIES OF ANY RECORDS REQUIRED TO BE KEPT BY ANY APPLICABLE REGULATORY DEPARTMENT OR AGENCY; AND (3) SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE TO PERFORM HIS OR HER DUTIES UNDER THIS ARTICLE. § 1299-F. 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 S. 7509--C 176 A. 9509--C THE CONTENTS OF A RETURN OR REPORT FILED WITH THE COMMISSIONER PURSUANT TO THIS ARTICLE, TO DIVULGE OR MAKE KNOWN IN ANY MANNER ANY PARTICULARS SET FORTH OR DISCLOSED IN ANY SUCH RETURN OR REPORT. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS AND REPORTS SHALL NOT BE REQUIRED TO PRODUCE ANY OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF OF THE COMMISSIONER IN AN ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS CHAPTER, OR IN ANY OTHER ACTION OR PROCEEDING INVOLVING THE COLLECTION OF A TAX DUE UNDER THIS CHAPTER TO WHICH THE STATE, THE COMMISSIONER OR AN AGENCY THAT IS AUTHORIZED TO PERMIT OR REGULATE THE PROVISION OF ANY RELEVANT TRANSPORTATION 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 OR THE REPORTS OR THE 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 IN EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THEREBY AS ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE CONSTRUED, HOWEVER, TO PROHIBIT THE COMMISSIONER, IN HIS OR HER DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR FROM PROVIDING ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT, BY OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF THE COMPTROLLER; NOR TO PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR THE PROVISION OF ANY INFORMATION CONTAINED THERE- IN, BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES OF THE STATE WHEN AN ACTION SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAPTER IN WHICH SUCH RETURNS OR REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED; NOR TO PROHIBIT THE COMMISSIONER FROM PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER THIS ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THEREFROM; NOR TO PROHIBIT THE DELIVERY TO A PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE, OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH PERSON PURSUANT TO THIS ARTI- CLE, NOR TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THEREOF; NOR 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 THE SURCHARGE IMPOSED BY THIS ARTICLE. (B) 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 SURCHARGE IMPOSED BY THIS ARTICLE, AND ONLY IF SUCH INFORMATION IS TO BE USED FOR PURPOSES OF TAX ADMINISTRATION ONLY; AND PROVIDED FURTHER THE COMMIS- SIONER MAY FURNISH TO THE COMMISSIONER OF INTERNAL REVENUE OR SUCH COMMISSIONER'S AUTHORIZED REPRESENTATIVE SUCH RETURNS FILED UNDER THIS S. 7509--C 177 A. 9509--C ARTICLE AND OTHER TAX INFORMATION, AS SUCH COMMISSIONER MAY CONSIDER 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. (C) (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. § 1299-G. 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 SURCHARGE IMPOSED BY THIS ARTICLE 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 ARTI- CLE AND HAD EXPRESSLY REFERRED TO THE SURCHARGE IMPOSED BY 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. § 1299-H. DEPOSIT AND DISPOSITION OF REVENUE. (A) ANY SURCHARGE, INTEREST, AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER, TO THE CREDIT OF THE COMPTROLLER IN TRUST FOR THE METROPOLITAN TRANSPORTATION AUTHORITY. AN ACCOUNT MAY BE ESTABLISHED IN ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS WILL BE KEPT SEPARATE AND APART FROM ALL OTHER MONEY IN THE POSSESSION OF THE COMPTROLLER. THE COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER SHALL RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS ARTICLE. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNTS IT RECEIVES UNDER THIS ARTICLE, BEFORE DEPOSIT INTO THE TRUST ACCOUNTS DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT AND DISTRIBUTE THE SURCHARGE, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE. (B) ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND DEDUCTING SUCH AMOUNTS FOR SUCH COSTS, AS PROVIDED FOR IN SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER SHALL CERTIFY TO THE COMPTROLLER THE AMOUNT OF REVENUES SO RECEIVED DURING THE PRIOR MONTH AS A RESULT OF THE SURCHARGE, INTEREST AND PENALTIES SO IMPOSED. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, AFTER DEDUCTING THE AMOUNTS SPECIFIED IN THE PREVIOUS SENTENCE, THE FIRST THREE HUNDRED SIXTY-TWO MILLION DOLLARS COLLECTED OR RECEIVED IN CALEN- DAR YEAR TWO THOUSAND NINETEEN, THE FIRST THREE HUNDRED ONE MILLION DOLLARS COLLECTED OR RECEIVED IN CALENDAR YEAR TWO THOUSAND TWENTY, AND THE FIRST THREE HUNDRED MILLION DOLLARS COLLECTED OR RECEIVED IN EACH CALENDAR YEAR THEREAFTER, SHALL BE DEPOSITED BY THE COMPTROLLER, WITHOUT APPROPRIATION, PURSUANT TO SUBDIVISION (C) OF THIS SECTION. THE NEXT FIFTY MILLION DOLLARS COLLECTED OR RECEIVED IN CALENDAR YEAR TWO THOU- S. 7509--C 178 A. 9509--C SAND NINETEEN, AND IN EACH YEAR THEREAFTER, IN EXCESS OF FUNDS COLLECTED AND DEPOSITED PURSUANT TO SUBDIVISION (C) OF THIS SECTION, SHALL BE DEPOSITED BY THE COMPTROLLER, WITHOUT APPROPRIATION, PURSUANT TO SUBDI- VISION (D) OF THIS SECTION, PROVIDED, HOWEVER, THAT ANY UNCOMMITTED FUND BALANCE AT THE END OF EACH CALENDAR YEAR THROUGH THE APPROVAL PROCESS OF SUBDIVISION THREE OF SECTION TWELVE HUNDRED SEVENTY-I OF THE PUBLIC AUTHORITIES LAW SHALL BE TRANSFERRED ON THE LAST BUSINESS DAY OF THE CALENDAR YEAR BY THE METROPOLITAN TRANSPORTATION AUTHORITY FROM THE OUTER BOROUGH TRANSPORTATION ACCOUNT TO THE GENERAL TRANSPORTATION ACCOUNT OF THE NEW YORK CITY TRANSPORTATION ASSISTANCE FUND CREATED BY SECTION TWELVE HUNDRED SEVENTY-I OF THE PUBLIC AUTHORITIES LAW. ANY AMOUNTS COLLECTED OR RECEIVED, IN ANY YEAR, THAT ARE IN EXCESS OF THE AMOUNTS DEPOSITED PURSUANT TO SUBDIVISIONS (C) AND (D) OF THIS SECTION, SHALL BE DEPOSITED BY THE COMPTROLLER, WITHOUT APPROPRIATION, PURSUANT TO SUBDIVISION (E) OF THIS SECTION. (C) THE AMOUNT OF REVENUES SO CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH BUSINESS DAY OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT, WITH- OUT APPROPRIATION, INTO THE SUBWAY ACTION PLAN ACCOUNT OF THE NEW YORK CITY TRANSPORTATION ASSISTANCE FUND ESTABLISHED PURSUANT TO SECTION TWELVE HUNDRED SEVENTY-I OF THE PUBLIC AUTHORITIES LAW. (D) THE AMOUNT OF REVENUES SO CERTIFIED THAT ARE IN EXCESS OF THE AMOUNTS DEPOSITED AS PROVIDED IN SUBDIVISION (C) OF THIS SECTION, SHALL BE PAID OVER BY THE FIFTEENTH BUSINESS DAY OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT, WITHOUT APPROPRIATION, INTO THE OUTER BOROUGH TRANSPORTA- TION ACCOUNT OF THE NEW YORK CITY TRANSPORTATION ASSISTANCE FUND ESTAB- LISHED PURSUANT TO SECTION TWELVE HUNDRED SEVENTY-I OF THE PUBLIC AUTHORITIES LAW. (E) THE AMOUNT OF REVENUES SO CERTIFIED THAT ARE IN EXCESS OF THE AMOUNTS DEPOSITED AS PROVIDED IN SUBDIVISIONS (C) AND (D) OF THIS SECTION, SHALL BE PAID OVER BY THE FIFTEENTH BUSINESS DAY OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT, WITHOUT APPROPRIATION, INTO THE GENERAL TRANSPORTATION ACCOUNT OF THE NEW YORK CITY TRANSPORTATION ASSISTANCE FUND ESTABLISHED PURSUANT TO SECTION TWELVE HUNDRED SEVENTY-I OF THE PUBLIC AUTHORITIES LAW. (F) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY SURCHARGE IMPOSED BY THIS ARTICLE THAT IS PAID IN CONNECTION WITH TRANS- PORTATION PROVIDED TO PERSONS ELIGIBLE FOR MEDICAL ASSISTANCE WHO ARE TRANSPORTED PURSUANT TO SECTION THREE HUNDRED SIXTY-FIVE-H OF THE SOCIAL SERVICES LAW SHALL BE TRANSFERRED ON A QUARTERLY BASIS FROM THE ACCOUNT SPECIFIED IN PARAGRAPH (A) OF THIS SECTION TO THE MEDICAID MANAGEMENT INFORMATION SYSTEM ESCROW FUND. THE COMMISSIONER OF HEALTH SHALL COLLECT THE MEDICAID TRANSPORTATION DATA NECESSARY TO DETERMINE AN AMOUNT TO BE TRANSFERRED EACH QUARTER; PROVIDED THAT SUCH AMOUNT SHALL BE RECONCILED IN THE SUBSEQUENT QUARTER TO REFLECT ACTUAL MEDICAID SURCHARGE EXPENDI- TURES; AND FURTHER PROVIDED THAT ANY DIFFERENCE BETWEEN THE AMOUNT TRANSFERRED AND THE RECONCILED AMOUNT SHALL BE ADDED TO OR SUBTRACTED FROM THE AMOUNT TRANSFERRED IN THE FOLLOWING QUARTER. § 1299-I. COOPERATION BY REGULATORY AGENCIES. ALL REGULATORY AGENCIES SHALL COOPERATE WITH AND ASSIST THE COMMISSIONER TO EFFECTUATE THE PURPOSES OF THIS ARTICLE AND THE COMMISSIONER'S RESPONSIBILITIES HERE- UNDER. SUCH COOPERATION SHALL INCLUDE OBTAINING, FURNISHING, AND TIMELY UPDATING CURRENT, COMPLETE AND ACCURATE NAMES, ADDRESSES AND ALL OTHER INFORMATION CONCERNING: (1) EVERY FOR-HIRE VEHICLE OWNER, OPERATOR, AND DRIVER OF FOR-HIRE VEHICLES LICENSED OR PERMITTED BY SUCH LICENSING AGENCY; (2) EVERY AGENT OF SUCH PERSON, IF ANY; AND (3) ANY OTHER PERSON OR ENTITY THAT IS LICENSED OR PERMITTED BY SUCH LICENSING AGENCY. SUCH S. 7509--C 179 A. 9509--C COOPERATION SHALL ALSO INCLUDE FURNISHING TO THE COMMISSIONER ALL WRIT- TEN, COMPUTERIZED, AUTOMATED OR ELECTRONIC RECORDS IN THE REGULATORY AGENCY'S POSSESSION, OR IN THE POSSESSION OF ANY OF ITS AGENTS, INSTRU- MENTALITIES, CONTRACTORS, OR ANY OTHER PERSON AUTHORIZED OR REQUIRED TO OBTAIN OR POSSESS SUCH RECORDS OR INFORMATION, THAT ACCOUNT FOR ANY TRANSPORTATION AND OPERATION FOR HIRE PROVIDED BY A LICENSED OR PERMIT- TED PERSON OR ENTITY. SUCH INFORMATION SHALL BE PROVIDED TO THE COMMIS- SIONER WITHOUT COST, AND IN A FORMAT PRESCRIBED BY THE COMMISSIONER. § 3. Section 1825 of the tax law, as amended by section 20 of part AAA of chapter 59 of the laws of 2017, is amended to read as follows: § 1825. Violation of secrecy provisions of the tax law.--Any person who violates the provisions of subdivision (b) of section twenty-one, subdivision one of section two hundred two, subdivision eight of section two hundred eleven, subdivision (a) of section three hundred fourteen, subdivision one or two of section four hundred thirty-seven, section four hundred eighty-seven, 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, SECTION TWELVE HUNDRED NINETY-NINE-F, subdivision (a) of section fourteen hundred eighteen, subdivision (a) of section fifteen hundred eighteen, subdivision (a) of section fifteen hundred fifty-five of this chapter, and subdivision (e) of section 11-1797 of the administrative code of the city of New York shall be guilty of a misdemeanor. § 4. The public authorities law is amended by adding a new section 1270-i to read as follows: § 1270-I. NEW YORK CITY TRANSPORTATION ASSISTANCE FUND. 1. THE AUTHOR- ITY SHALL CREATE AND ESTABLISH A FUND TO BE KNOWN AS THE "NEW YORK CITY TRANSPORTATION ASSISTANCE FUND" WHICH SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS OF THE AUTHORITY. THE NEW YORK CITY TRANSPORTATION ASSISTANCE FUND SHALL CONSIST OF THREE SEPARATE ACCOUNTS: (I) THE "SUBWAY ACTION PLAN ACCOUNT"; (II) THE "OUTER BOROUGH TRANSPORTATION ACCOUNT"; AND (III) THE "GENERAL TRANSPORTATION ACCOUNT". THE AUTHORITY SHALL MAKE DEPOSITS IN THE SUBWAY ACTION PLAN ACCOUNT OF THE MONEYS RECEIVED BY IT PURSUANT TO THE PROVISIONS OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED NINETY-NINE-H OF THE TAX LAW IN ACCORDANCE WITH THE PROVISIONS THEREOF, SHALL MAKE DEPOSITS IN THE OUTER BOROUGH TRANSPORTATION ACCOUNT OF THE MONEYS RECEIVED BY IT PURSUANT TO THE PROVISIONS OF SUBDIVISION (D) OF SECTION TWELVE HUNDRED NINETY-NINE-H OF THE TAX LAW IN ACCORDANCE WITH THE PROVISIONS THEREOF, AND SHALL MAKE DEPOSITS IN THE GENERAL TRANSPORTATION ACCOUNT OF THE MONEYS RECEIVED BY IT PURSUANT TO THE PROVISIONS OF SUBDIVISION (E) OF SECTION TWELVE HUNDRED NINETY-NINE-H OF THE TAX LAW IN ACCORDANCE WITH THE PROVISIONS THEREOF, AND PURSUANT TO THE PROVISIONS OF SECTION ELEVEN HUNDRED ELEVEN-C OF VEHICLE AND TRAFFIC LAW. 2. MONEYS IN THE SUBWAY ACTION PLAN ACCOUNT SHALL BE USED FOR THE EXCLUSIVE PURPOSE OF FUNDING THE OPERATING AND CAPITAL COSTS OF THE METROPOLITAN TRANSPORTATION AUTHORITY'S NEW YORK CITY SUBWAY ACTION PLAN. SUCH FUNDS MAY BE USED FOR INFRASTRUCTURE INCLUDING CONSTRUCTION, RECONSTRUCTION, RECONDITIONING AND PRESERVATION OF TRANSPORTATION SYSTEMS, FACILITIES AND EQUIPMENT, ACQUISITION OF PROPERTY, AND FOR OPERATING COSTS INCLUDING PERSONAL SERVICES, NON-PERSONAL SERVICES, FRINGE BENEFITS, AND CONTRACTUAL SERVICES. FUNDS MAY ALSO BE USED TO PAY OR TO REIMBURSE THE AUTHORITY FOR ITS PAYMENT OF DEBT SERVICE AND RESERVE REQUIREMENTS ON THAT PORTION OF AUTHORITY BONDS AND NOTES ISSUED S. 7509--C 180 A. 9509--C BY THE AUTHORITY FOR CAPITAL COSTS OF THE METROPOLITAN TRANSPORTATION AUTHORITY'S NEW YORK CITY SUBWAY ACTION PLAN. 3. MONEYS IN THE OUTER BOROUGH TRANSPORTATION ACCOUNT SHALL BE USED FOR THE EXCLUSIVE PURPOSE OF FUNDING THE OPERATING AND CAPITAL COSTS OF METROPOLITAN TRANSPORTATION AUTHORITY FACILITIES, EQUIPMENT AND SERVICES IN THE COUNTIES OF BRONX, KINGS, QUEENS AND RICHMOND, AND ANY PROJECTS IMPROVING TRANSPORTATION CONNECTIONS FROM SUCH COUNTIES TO NEW YORK COUNTY. SUCH FUNDS MAY BE USED FOR INFRASTRUCTURE INCLUDING CONSTRUCTION, RECONSTRUCTION, RECONDITIONING AND PRESERVATION OF TRANS- PORTATION SYSTEMS, FACILITIES AND EQUIPMENT, ACQUISITION OF PROPERTY, AND FOR OPERATING COSTS INCLUDING PERSONAL SERVICES, NON-PERSONAL SERVICES, FRINGE BENEFITS, AND CONTRACTUAL SERVICES. FUNDS MAY ALSO BE USED TO FUND A TOLL REDUCTION PROGRAM FOR ANY CROSSINGS UNDER THE JURIS- DICTION OF THE METROPOLITAN TRANSPORTATION AUTHORITY OR ITS SUBSIDIARIES OR AFFILIATES. FUNDS MAY ALSO BE USED TO PAY OR TO REIMBURSE THE AUTHORITY FOR ITS PAYMENT OF DEBT SERVICE AND RESERVE REQUIREMENTS ON THAT PORTION OF AUTHORITY BONDS AND NOTES THAT HAVE BEEN ISSUED BY THE AUTHORITY SPECIFICALLY FOR THE AUTHORIZED PURPOSE OF THIS ACCOUNT. NOTWITHSTANDING ANY LAW TO THE CONTRARY, FINAL APPROVAL OF THE USE OF ANY FUNDS PAID INTO THE OUTER BOROUGH TRANSPORTATION ACCOUNT SHALL BE UNANIMOUSLY APPROVED BY THREE MEMBERS OF THE METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PROGRAM REVIEW BOARD, ESTABLISHED PURSUANT TO SECTION TWELVE HUNDRED SIXTY-NINE-A OF THIS TITLE SO DESIGNATED PURSUANT TO THIS SUBDIVISION. FOR PURPOSES OF SUCH FINAL APPROVALS THE THREE VOTING MEMBERS ARE: THE MEMBER APPOINTED UPON RECOMMENDATION BY THE TEMPORARY PRESIDENT OF THE SENATE; THE MEMBER APPOINTED UPON RECOMMENDATION OF SPEAKER OF THE ASSEMBLY; AND THE MEMBER APPOINTED BY THE GOVERNOR. 4. MONEYS IN THE GENERAL TRANSPORTATION ACCOUNT SHALL BE USED FOR FUNDING THE OPERATING AND CAPITAL COSTS OF THE METROPOLITAN TRANSPORTA- TION AUTHORITY. SUCH FUNDS MAY BE USED FOR INFRASTRUCTURE INCLUDING CONSTRUCTION, RECONSTRUCTION, RECONDITIONING AND PRESERVATION OF TRANS- PORTATION SYSTEMS, FACILITIES AND EQUIPMENT, ACQUISITION OF PROPERTY, AND FOR OPERATING COSTS INCLUDING PERSONAL SERVICES, NON-PERSONAL SERVICES, FRINGE BENEFITS, AND CONTRACTUAL SERVICES. FUNDS MAY ALSO BE USED TO PAY OR TO REIMBURSE THE AUTHORITY FOR ITS PAYMENT OF DEBT SERVICE AND RESERVE REQUIREMENTS ON THAT PORTION OF AUTHORITY BONDS AND NOTES THAT HAVE BEEN ISSUED BY THE AUTHORITY SPECIFICALLY FOR THE PURPOSES OF THIS ACCOUNT. 5. ANY REVENUES DEPOSITED IN THE SUBWAY ACTION PLAN ACCOUNT, THE OUTER BOROUGH TRANSPORTATION ACCOUNT, OR THE GENERAL TRANSPORTATION ACCOUNT PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL BE USED EXCLUSIVELY FOR THE PURPOSES DESCRIBED, RESPECTIVELY, IN SUBDIVISIONS TWO, THREE, AND FOUR OF THIS SECTION. SUCH REVENUES SHALL ONLY SUPPLEMENT AND SHALL NOT SUPPLANT ANY FEDERAL, STATE, OR LOCAL FUNDS EXPENDED BY THE METRO- POLITAN TRANSPORTATION AUTHORITY, SUCH AUTHORITY'S AFFILIATES OR SUBSID- IARIES FOR SUCH RESPECTIVE PURPOSES. 6. ANY REVENUES DEPOSITED INTO THE NEW YORK CITY TRANSPORTATION ASSISTANCE FUND PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL NOT BE DIVERTED INTO THE GENERAL FUND OF THE STATE, ANY OTHER FUND ESTABLISHED BY THE CHAPTER OF THE LAWS OF TWO THOUSAND EIGHTEEN WHICH ADDED THIS SUBDIVISION, ANY OTHER FUND MAINTAINED FOR THE SUPPORT OF ANY OTHER GOVERNMENTAL PURPOSE, OR FOR ANY OTHER PURPOSE NOT AUTHORIZED BY SUBDI- VISIONS TWO, THREE AND FOUR OF THIS SECTION. 7. THE AUTHORITY SHALL REPORT ON THE RECEIPT AND USES OF ALL FUNDS RECEIVED BY THE NEW YORK CITY TRANSPORTATION ASSISTANCE FUND, AND IN EACH OF ITS ACCOUNTS, TO THE DIRECTOR OF THE BUDGET, THE TEMPORARY PRES- S. 7509--C 181 A. 9509--C IDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, ON AN ANNUAL BASIS NO LATER THAN THE FIRST DAY OF FEBRUARY. § 5. The public authorities law is amended by adding a new section 1279-d to read as follows: § 1279-D. SUPPLEMENTAL REVENUE REPORTING PROGRAM. 1. ON OR BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN, THE AUTHORITY SHALL DEVELOP A SUPPLEMENTAL REVENUE REPORTING PROGRAM. SUCH PROGRAM SHALL PROVIDE A DETAILED ACCOUNTING OF THE AMOUNT SPENT FROM SUPPLEMENTAL REVENUES ON ACTIONS, MEASURES OR PROJECTS UNDERTAKEN TO REDUCE MAJOR INCIDENTS THAT HAVE BEEN FOUND TO CAUSE DELAYS TO THE NEW YORK CITY SUBWAY SYSTEM, INCLUDING BUT NOT LIMITED TO: TRACK INCIDENTS; SIGNAL FAILURE; PERSONS ON THE TRACK; POLICE AND MEDICAL ACTIVITY; STRUCTURAL AND ELECTRICAL PROBLEMS; AND BROKEN TRAINCAR EQUIPMENT. THE INFORMATION DESCRIBED IN THIS SUBDIVISION, INCLUDING THE SPENDING DETAILS AND THE ASSOCIATED CATEGORY OF MAJOR INCIDENT, SHALL BE UPDATED QUARTERLY AND BE PROMINENT- LY POSTED TOGETHER ON THE AUTHORITY'S WEBSITE. 2. DEFINITIONS. FOR PURPOSES OF THIS SECTION, "SUPPLEMENTAL REVENUES" SHALL INCLUDE ANY FUNDS APPROPRIATED BY THE STATE OR THE CITY OF NEW YORK TO SUPPORT THE NYC SUBWAY ACTION PLAN APPROVED BY THE BOARD OF THE AUTHORITY AND ANY REVENUES RECEIVED PURSUANT TO SECTION TWELVE HUNDRED NINETY-NINE-H OF THE TAX LAW. § 6. Section 1111-c of the vehicle and traffic law, as added by section 9 of part II of chapter 59 of the laws of 2010, paragraphs 1 and 4 of subdivision (a), subdivision (b), paragraphs 3, 4, 5 and 6 of subdivision (c) and subdivision (e) as amended by chapter 239 of the laws of 2015, is amended to read as follows: § 1111-c. Owner liability for failure of operator to comply with bus lane restrictions. (a) 1. Notwithstanding any other provision of law, the city of New York is hereby authorized and empowered to establish a bus rapid transit program imposing monetary liability on the owner of a vehicle for failure of an operator thereof to comply with bus lane restrictions in such city in accordance with the provisions of this section. The New York city department of transportation or applicable mass transit agency, for purposes of the implementation of such program, shall operate bus lane photo devices only within designated bus lanes in such bus rapid transit program. Such bus lane photo devices may be stationary or mobile and shall be activated at locations determined by such department of transportation and/or on buses selected by such department of transportation in consultation with the applicable mass transit agency, HOWEVER, THE APPLICABLE MASS TRANSIT AGENCY MAY ALSO INSTALL NO LESS THAN FIFTY MOBILE BUS LANE PHOTO DEVICES ON BUSES OPER- ATING ON DESIGNATED BUS LANES IN SUCH BUS RAPID TRANSIT PROGRAM BELOW 96TH STREET IN THE BOROUGH OF MANHATTAN, IN CONSULTATION WITH THE NEW YORK CITY DEPARTMENT OF TRANSPORTATION FOR THE PURPOSES OF THIS SECTION. 2. Any image or images captured by bus lane photo devices shall be inadmissible in any disciplinary proceeding convened by the applicable mass transit agency or any subsidiary thereof and any proceeding initi- ated by the department involving licensure privileges of bus operators. Any mobile bus lane photo device mounted on a bus shall be directed outwardly from such bus to capture images of vehicles operated in violation of bus lane restrictions, and images produced by such device shall not be used for any other purpose in the absence of a court order requiring such images to be produced. 3. The city of New York shall adopt and enforce measures to protect the privacy of drivers, passengers, pedestrians and cyclists whose iden- S. 7509--C 182 A. 9509--C tity and identifying information may be captured by a bus lane photo device. Such measures shall include: (i) utilization of necessary technologies to ensure, to the extent practicable, that images produced by such bus lane photo devices shall not include images that identify the driver, the passengers, or the contents of the vehicle, provided, however, that no notice of liability issued pursuant to this section shall be dismissed solely because an image allows for the identification of the driver, the passengers or other contents of a vehicle; (ii) a prohibition on the use or dissemination of vehicles' license plate information and other information and images captured by bus lane photo devices except: (A) as required to establish liability under this section or collect payment of penalties; (B) as required by court order; or (C) as otherwise required by law; (iii) the installation of signage at regular intervals within restricted bus lanes stating that bus lane photo devices are used to enforce restrictions on vehicular traffic in bus lanes; and (iv) oversight procedures to ensure compliance with the aforementioned privacy protection measures. 4. Within the city of New York, such bus lane photo devices shall only be operated on designated bus lanes within the bus rapid transit program and only from [7:00] 6:00 a.m. to [7:00] 10:00 p.m. Warning notices of violation will be issued during the first sixty days that bus lane photo devices are operated on each route in the bus rapid transit program that is established after June fifteenth, two thousand fifteen. (b) If the city of New York has established a bus rapid transit program pursuant to subdivision (a) of this section, the owner of a vehicle shall be liable for a penalty imposed pursuant to this section if such vehicle was used or operated with the permission of the owner, express or implied, in violation of any bus lane restrictions that apply to routes within such program, and such violation is evidenced by infor- mation obtained from a bus lane photo device; provided however that no owner of a vehicle shall be liable for a penalty imposed pursuant to this section where the operator of such vehicle has been convicted of the underlying violation of any bus lane restrictions. (c) For purposes of this section, the following terms shall have the following meanings: 1. "owner" shall have the meaning provided in article two-B of this chapter. 2. "bus lane photo device" shall mean a device that is capable of operating independently of an enforcement officer and produces one or more images of each vehicle at the time it is in violation of bus lane restrictions. 3. "bus lane restrictions" shall mean restrictions on the use of designated traffic lanes by vehicles other than buses imposed on routes within a bus rapid transit program by local law and signs erected by the department of transportation of a city that establishes such a program pursuant to this section. 4. "Bus Rapid Transit Phase I plan" shall mean the following five bus rapid transit routes as designated by the New York city department of transportation: Fordham Road, First/Second Avenue, Nostrand Avenue, Thirty-Fourth Street, Hylan Boulevard, and an undesignated route in the borough of Queens not to exceed ten miles. 5. "bus rapid transit program" shall mean up to ten routes designated by the New York city department of transportation in consultation with the applicable mass transit agency, in addition to the Bus Rapid Transit S. 7509--C 183 A. 9509--C Phase I plan routes, that operate on designated bus lanes and that may include upgraded signage, enhanced road markings, minimum bus stop spac- ing, off-board fare payment, traffic signal priority for buses, and any other enhancement that increases bus speed or reliability. 6. "designated bus lane" shall mean a lane dedicated for the exclusive use of buses with the exceptions allowed under 4-12(m) and 4-08(a)(3) of title 34 of the rules of the city of New York. (d) A certificate, sworn to or affirmed by a technician employed by the city in which the charged violation occurred, or a facsimile there- of, based upon inspection of photographs, microphotographs, videotape or other recorded images produced by a bus lane photo device, shall be prima facie evidence of the facts contained therein. Any photographs, microphotographs, videotape or other recorded images evidencing such a violation shall be available for inspection in any proceeding to adjudi- cate the liability for such violation pursuant to this section. (e) An owner liable for a violation of a bus lane restriction imposed on any route within a bus rapid transit program shall be liable for monetary penalties in accordance with a schedule of fines and penalties promulgated by the parking violations bureau of the city of New York; provided, however, that the monetary penalty for violating a bus lane restriction shall not exceed one hundred fifteen dollars; provided, further, that an owner shall be liable for an additional penalty not to exceed twenty-five dollars for each violation for the failure to respond to a notice of liability within the prescribed time period. (f) An imposition of liability pursuant to this section shall not be deemed a conviction of an operator and shall not be made part of the operating record of the person upon whom such liability is imposed, nor shall it be used for insurance purposes in the provision of motor vehi- cle insurance coverage. (g) 1. A notice of liability shall be sent by first class mail to each person alleged to be liable as an owner for a violation of a bus lane restriction. Personal delivery to the owner shall not be required. A manual or automatic record of mailing prepared in the ordinary course of business shall be prima facie evidence of the facts contained therein. 2. A notice of liability shall contain the name and address of the person alleged to be liable as an owner for a violation of a bus lane restriction, the registration number of the vehicle involved in such violation, the location where such violation took place including the street address or cross streets, one or more images identifying the violation, the date and time of such violation and the identification number of the bus lane photo device which recorded the violation or other document locator number. 3. The notice of liability shall contain information advising the person charged of the manner and the time in which he or she may contest the liability alleged in the notice. Such notice of liability shall also contain a warning to advise the persons charged that failure to contest in the manner and time provided shall be deemed an admission of liabil- ity and that a default judgment may be entered thereon. 4. The notice of liability shall be prepared and mailed by the agency or agencies designated by the city of New York, or any other entity authorized by such city to prepare and mail such notification of violation. 5. Adjudication of the liability imposed upon owners by this section shall be by the New York city parking violations bureau. (h) If an owner of a vehicle receives a notice of liability pursuant to this section for any time period during which such vehicle was S. 7509--C 184 A. 9509--C reported to the police department as having been stolen, it shall be a valid defense to an allegation of liability for a violation of a bus lane restriction that the vehicle had been reported to the police as stolen prior to the time the violation occurred and had not been recov- ered by such time. For purposes of asserting the defense provided by this subdivision it shall be sufficient that a certified copy of the police report on the stolen vehicle be sent by first class mail to the parking violations bureau of such city. (i) 1. An owner who is a lessor of a vehicle to which a notice of liability was issued pursuant to subdivision (g) of this section shall not be liable for the violation of a bus lane restriction, provided that: (i) prior to the violation, the lessor has filed with such parking violations bureau in accordance with the provisions of section two hundred thirty-nine of this chapter; and (ii) within thirty-seven days after receiving notice from such bureau of the date and time of a liability, together with the other information contained in the original notice of liability, the lessor submits to such bureau the correct name and address of the lessee of the vehicle identified in the notice of liability at the time of such violation, together with such other additional information contained in the rental, lease or other contract document, as may be reasonably required by such bureau pursuant to regulations that may be promulgated for such purpose. 2. Failure to comply with subparagraph (ii) of paragraph one of this subdivision shall render the lessor liable for the penalty prescribed in this section. 3. Where the lessor complies with the provisions of paragraph one of this subdivision, the lessee of such vehicle on the date of such violation shall be deemed to be the owner of such vehicle for purposes of this section, shall be subject to liability for such violation pursu- ant to this section and shall be sent a notice of liability pursuant to subdivision (g) of this section. (j) If the owner liable for a violation of a bus lane restriction was not the operator of the vehicle at the time of the violation, the owner may maintain an action for indemnification against the operator. (k) Nothing in this section shall be construed to limit the liability of an operator of a vehicle for any violation of bus lane restrictions. (l) If the city of New York adopts a bus rapid transit demonstration program pursuant to subdivision (a) of this section it shall submit a report on the results of the use of bus lane photo devices to the gover- nor, the temporary president of the senate and the speaker of the assem- bly by April first, two thousand twelve and every two years thereafter. Such report shall include, but not be limited to: 1. a description of the locations and/or buses where bus lane photo devices were used; 2. the total number of violations recorded on a monthly and annual basis; 3. the total number of notices of liability issued; 4. the number of fines and total amount of fines paid after the first notice of liability; 5. the number of violations adjudicated and results of such adjudi- cations including breakdowns of dispositions made; 6. the total amount of revenue realized by such city and any partic- ipating mass transit agency; 7. the quality of the adjudication process and its results; 8. the total number of cameras by type of camera; S. 7509--C 185 A. 9509--C 9. the total cost to the city and the total cost to any participating mass transit agency; and 10. a detailed report on the bus speeds, reliability, and ridership before and after implementation of the bus rapid transit demonstration program for each bus route, including current statistics. (M) ANY REVENUE FROM FINES AND PENALTIES COLLECTED PURSUANT TO THIS SECTION FROM ANY MOBILE BUS LANE PHOTO DEVICES THAT WERE AUTHORIZED TO BE INSTALLED PURSUANT TO A CHAPTER OF THE LAWS OF TWO THOUSAND EIGHTEEN THAT ADDED THIS SUBDIVISION SHALL BE REMITTED BY THE CITY OF NEW YORK TO THE APPLICABLE MASS TRANSIT AGENCY ON A QUARTERLY BASIS TO BE DEPOSITED IN THE GENERAL TRANSPORTATION ACCOUNT OF THE NEW YORK CITY TRANSPORTA- TION ASSISTANCE FUND ESTABLISHED PURSUANT TO SECTION TWELVE HUNDRED SEVENTY-I OF THE PUBLIC AUTHORITIES LAW. § 7. Metropolitan transportation sustainability advisory workgroup. 1. There is hereby established the metropolitan transportation sustaina- bility advisory workgroup (the "workgroup") which shall consist of ten members, two of whom shall be appointed by the governor, two of whom shall be appointed by the speaker of the assembly, two of whom shall be appointed by the temporary president of the senate, one of whom shall be appointed by the mayor of the city of New York, one of whom shall be appointed by the chairman of the metropolitan transportation authority, one of whom shall be appointed by the commissioner of the New York city department of transportation and one of whom shall be appointed by the commissioner of the New York state department of transportation. The chair of the workgroup shall be nominated by the governor. 2. The advisory workgroup shall undertake a review of the actions and measures that are necessary to provide safe, adequate, efficient, and reliable transportation within the city of New York and the metropolitan commuter transportation district within any available resources and shall review and make recommendations regarding: (a) the adequacy of public transportation provided by the MTA, the Metro-North Commuter Railroad, the New York City Transit Authority and the Long Island Rail Road, including but not limited to the reliability, sustainability, and transparency on project selection; (b) sustainable funding for public transportation needs; (c) motor vehicular traffic within the city of New York, including, but not limited to, taxicab and for-hire vehicle trips; (d) transportation strategies to advance the furtherance of environ- mental goals; (e) tolling of intra-borough bridges within the city of New York; (f) taxicab and for-hire vehicle trips including those origi- nating and/or terminating within, or transiting, particular geographic areas using publicly available information; and (g) the feasibility of a reduced fare program for transportation on New York city transit author- ity systems, the Long Island Rail Road and the Metro-North Commuter Railroad for students attending a university, college, community college, or post-secondary vocational institution, which is located within the city of New York. 3. The advisory workgroup shall, on or before December 31, 2018, by a majority vote approve and issue a final report and recommendations to the governor, the temporary president of the senate, the speaker of the assembly, the mayor of the city of New York, and the Metropolitan Trans- portation Authority. 4. For the purposes of this section, the following terms shall have the following meanings: (a) "Metropolitan Commuter Transportation District" shall mean the commuter transportation district as established by section 1262 of the public authorities law; S. 7509--C 186 A. 9509--C (b) "Metropolitan transportation authority" or "MTA" shall mean the corporation created by section 1263 of the public authorities law; (c) "Taxicab" shall have the same meaning as such term is defined by section 148-a of the vehicle and traffic law and section 19-502 of the administrative code of the city of New York; and (d) "For-hire vehicle" shall mean a motor vehicle, other than an ambu- lance as defined by section 100-b of the vehicle and traffic law and a bus as defined in paragraph 34 of subdivision (b) of section 1101 of the tax law, carrying passengers for hire. § 8. This act shall take effect immediately; provided that: a. the amendments to section 1111-c of the vehicle and traffic law made by section six of this act shall not affect the repeal of such section and shall be deemed repealed therewith; and b. the provisions of section seven of this act shall expire and be deemed repealed April 1, 2019. PART OOO Section 1. The opening paragraph of subdivision (h) of section 121 of chapter 261 of the laws of 1988, amending the state finance law and other laws relating to the New York state infrastructure trust fund, as amended by section 1 of part CCC of chapter 59 of the laws of 2017, is amended to read as follows: The provisions of 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 participation 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 [eighteen] NINETEEN, except that: § 2. This act shall take effect immediately. PART PPP Section 1. Short title. This act shall be known and may be cited as the "New York city housing authority emergency management act". § 2. The public housing law is amended by adding a new section 402-d to read as follows: § 402-D. THE GOVERNOR MAY ISSUE AN EXECUTIVE ORDER, PURSUANT TO ARTI- CLE TWO-B OF THE EXECUTIVE LAW AND SUBJECT TO THE AVAILABILITY OF A STATE APPROPRIATION, WHICH SHALL GOVERN THE EXAMINATION AND REMEDIATION OF CONDITIONS, INCLUDING THE CONSTRUCTION OR RECONSTRUCTION AS MAY BE REQUIRED, OF RESIDENTIAL PROPERTIES OWNED BY THE AUTHORITY AND THE DEVELOPMENT AND EXECUTION OF A PLAN TO REMEDIATE SUCH CONDITIONS. § 3. This act shall take effect immediately. PART QQQ Section 1. This act shall be known and may be cited as the "New York city BQE Design-Build act". § 2. For the purposes of this act: S. 7509--C 187 A. 9509--C (a) "Authorized entity" shall mean the New York city department of design and construction, and the New York city department of transporta- tion. (b) "Best value" shall mean the basis for awarding contracts for services to a proposer that optimizes quality, cost and efficiency, price and performance criteria, which may include, but is not limited to: (1) The quality of the proposer's performance on previous projects; (2) The timeliness of the proposer's performance on previous projects; (3) The level of customer satisfaction with the proposer's performance on previous projects; (4) The proposer's record of performing previous projects on budget and ability to minimize cost overruns; (5) The proposer's ability to limit change orders; (6) The proposer's ability to prepare appropriate project plans; (7) The proposer's technical capacities; (8) The individual qualifications of the proposer's key personnel; (9) The proposer's ability to assess and manage risk and minimize risk impact; (10) The proposer's financial capability; (11) The proposer's ability to comply with applicable requirements, including the provisions of articles 145, 147 and 148 of the education law; (12) The proposer's past record of compliance with federal, state and local laws, rules, licensing requirements, where applicable, and execu- tive orders, including but not limited to compliance with the labor law and other applicable labor and prevailing wage laws, article 15-A of the executive law, and any other applicable laws concerning minority- and women-owned business enterprise participation; (13) The proposer's record of complying with existing labor standards, maintaining harmonious labor relations, and protecting the health and safety of workers and payment of wages above any locally-defined living wage; and (14) A quantitative factor to be used in evaluation of bids or offers for awarding of contracts for bidders or offerers that are certified as minority- or women-owned business enterprises pursuant to article 15-A of the executive law, and certified pursuant to local law as minority- or women-owned business enterprises. Where an agency identifies a quan- titative factor pursuant to this paragraph, the agency must specify that businesses certified as minority- or women-owned business enterprises pursuant to article 15-A of the executive law as well as those certified as minority- or women-owned business enterprises or pursuant to section 1304 of the New York City charter are eligible to qualify for such factor. Nothing in this paragraph shall be construed as a requirement that such businesses be concurrently certified as minority- or women- owned business enterprises under both article 15-A of the executive law and section 1304 of the New York City charter to qualify for such quan- titative factors. Such basis shall reflect, wherever possible, objec- tive and quantifiable analysis. (c) "Cost plus" shall mean compensating a contractor for the cost to complete a contract by reimbursing actual costs for labor, equipment and materials plus an additional amount for overhead and profit. (d) "Design-build contract" shall mean a contract for the design and construction of a public work with a single entity, which may be a team comprised of separate entities. S. 7509--C 188 A. 9509--C (e) "Project labor agreement" shall have the meaning set forth in subdivision 1 of section 222 of the labor law. A project labor agreement shall require participation in apprentice training programs in accord- ance with paragraph (e) of subdivision 2 of such section. (f) "Public work" shall mean a public work in the city of New York related to the following, and shall refer to this public work; Brooklyn Queens Expressway, from the vicinity of Atlantic avenue to the vicinity of Sands street in Kings county. § 3. Any contract for a public work undertaken pursuant to a project labor agreement in accordance with section 222 of the labor law may be a design-build contract in accordance with this act. § 4. Notwithstanding any general, special or local law, rule or regu- lation to the contrary, including but not limited to article 5-A of the general municipal law and in conformity with the requirements of this act, for any public work that has an estimated cost of not less than ten million dollars and is undertaken pursuant to a project labor agreement in accordance with section 222 of the labor law, an authorized entity charged with awarding a contract for public work may use the alternative delivery method referred to as design-build contracts. (a) A contractor selected by such authorized entity to enter into a design-build contract shall be selected through a two-step method, as follows: (1) Step one. Generation of a list of responding entities that have demonstrated the general capability to perform the design-build contract. Such list shall consist of a specified number of responding entities, as determined by an authorized entity, and shall be generated based upon the authorized entity's review of responses to a publicly advertised request for qualifications. The authorized entity's request for qualifications shall include a general description of the public work, the maximum number of responding entities to be included on the list, the selection criteria to be used and the relative weight of each criteria in generating the list. Such selection criteria shall include the qualifications and experience of the design and construction team, organization, demonstrated responsibility, ability of the team or of a member or members of the team to comply with applicable requirements, including the provisions of articles 145, 147, and 148 of the education law, past record of compliance with the labor law, and such other quali- fications the authorized entity deems appropriate, which may include but are not limited to project understanding, financial capability and record of past performance. The authorized entity shall evaluate and rate all responding entities to the request for qualifications. Based upon such ratings, the authorized entity shall list the responding enti- ties that shall receive a request for proposals in accordance with para- graph two of this subdivision. To the extent consistent with applicable federal law, the authorized entity shall consider, when awarding any contract pursuant to this section, the participation of: (i) responding entities that are certified as minority- or women-owned business enter- prises pursuant to article 15-A of the executive law, or certified pursuant to local law as minority- or women-owned business enterprises; and (ii) small business concerns identified pursuant to subdivision (b) of section 139-g of the state finance law. (2) Step two. Selection of the proposal which is the best value to the authorized entity. The authorized entity shall issue a request for proposals to the responding entities listed pursuant to paragraph one of this subdivision. If such a responding entity consists of a team of separate entities, the entities that comprise such a team must remain S. 7509--C 189 A. 9509--C unchanged from the responding entity as listed pursuant to paragraph one of this subdivision unless otherwise approved by the authorized entity. The request for proposals shall set forth the public work's scope of work, and other requirements, as determined by the authorized entity, which may include separate goals for work under the contract to be performed by businesses certified as minority- or women-owned business enterprises pursuant to article 15-A of the executive law, or certified pursuant to local law as minority- or women-owned business enterprises. The request for proposals shall also specify the criteria to be used to evaluate the responses and the relative weight of each of such criteria. Such criteria shall include the proposal's cost, the quality of the proposal's solution, the qualifications and experience of the proposer, and other factors deemed pertinent by the authorized entity, which may include, but shall not be limited to, the proposal's manner and schedule of project implementation, the proposer's ability to complete the work in a timely and satisfactory manner, maintenance costs of the completed public work, maintenance of traffic approach, and community impact. Any contract awarded pursuant to this act shall be awarded to a responsive and responsible proposer, which, in consideration of these and other specified criteria deemed pertinent, offers the best value, as deter- mined by the authorized entity. The request for proposals shall include a statement that proposers 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 proposal. Nothing in this subdivision shall be construed to prohibit the authorized entity from negotiating 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 entity's website. (b) An authorized entity awarding a design-build contract to a contractor offering the best value may but shall not be required to use the following types of contracts: (1) A cost-plus not to exceed guaranteed maximum price form of contract in which the authorized entity shall be entitled to monitor and audit all costs. In establishing the schedule and process for determin- ing a guaranteed maximum price, the contract between the authorized 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 of substantial and final completion on which the guaranteed maximum price is based, and (v) Include a schedule of unit prices; or (2) 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 public work. § 5. Any contract entered into pursuant to this act shall include a clause requiring that any professional services regulated by articles 145, 147 and 148 of the education law shall be performed and stamped and sealed, where appropriate, by a professional licensed in accordance with the appropriate articles. S. 7509--C 190 A. 9509--C § 6. Construction with respect to each contract entered into by an authorized entity pursuant to this act shall be deemed a "public work" to be performed in accordance with the provisions of article 8 of the labor law, as well as subject to sections 200, 240, 241 and 242 of such law and enforcement of prevailing wage requirements pursuant to applica- ble law or, for projects or public works receiving federal aid, applica- ble federal requirements for prevailing wage. Any contract entered into pursuant to this act shall include a clause requiring the selected design builder to obligate every tier of contractor working on the public work to comply with the project labor agreement referenced in section three of this act, and shall include project labor agreement compliance monitoring and enforcement provisions consistent with the applicable project labor agreement. § 7. Each contract entered into by an authorized entity pursuant to this act shall comply with the objectives and goals with regard to minority- and women-owned business enterprises pursuant to, as applica- ble, section 6-129 of the administrative code of the city of New York, or, for projects or public works receiving federal aid, applicable federal requirements for disadvantaged business enterprises or minority- and women-owned business enterprises. § 8. Public works undertaken by an authorized entity pursuant to this act shall be subject to the requirements of article 8 of the environ- mental conservation law, and, where applicable, the requirements of the national environmental policy act. § 9. (a) 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 employees of authorized entities solely in connection with the public works identified in subdivision (f) of section two of this act, shall be preserved and protected. (b) Nothing in this act 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 by existing employees of authorized entities to a contractor. (c) Employees of authorized entities using design-build contracts serving in positions in newly created titles shall be assigned to the appropriate bargaining unit. Nothing contained in this act shall be construed to affect: (1) the existing rights of employees of such enti- ties pursuant to an existing collective bargaining agreement, (2) the existing representational relationships among employee organizations representing employees of such entities, or (3) the bargaining relation- ships between such entities and such employee organizations. § 10. The submission of a proposal or responses or the execution of a design-build contract pursuant to this act shall not be construed to be a violation of section 6512 of the education law. § 11. Nothing contained in this act shall limit the right or obli- gation of any authorized entity to comply with the provisions of any existing contract or to award contracts as otherwise provided by law. § 12. For any design-build contract for a public work defined by subdivision (f) of section two of this act, the City of New York or its respective departments shall receive approval from the Commissioner of New York State Department of Transportation before any request for qual- S. 7509--C 191 A. 9509--C ification is issued, such a contract award is finalized, and such contract is executed. § 13. This act shall take effect immediately and shall expire and be deemed repealed 2 years after such date, provided that, public works with requests for qualifications issued prior to such repeal shall be permitted to continue under this act notwithstanding such repeal. PART RRR Section 1. Subdivision 1 of section 208 of the civil service law, as amended by chapter 503 of the laws of 1971, is amended and two new subdivisions 4 and 5 are added to read as follows: 1. A public employer shall extend to an employee organization certi- fied or recognized pursuant to this article the following rights: (a) to represent the employees in negotiations notwithstanding the existence of an agreement with an employee organization that is no long- er certified or recognized, and in the settlement of grievances; and (b) to membership dues deduction, upon presentation of dues deduction authorization cards signed by individual employees. A PUBLIC EMPLOYER SHALL COMMENCE MAKING SUCH DEDUCTIONS AS SOON AS PRACTICABLE, BUT IN NO CASE LATER THAN THIRTY DAYS AFTER RECEIVING PROOF OF A SIGNED DUES DEDUCTION AUTHORIZATION CARD; AND SUCH DUES SHALL BE TRANSMITTED TO THE CERTIFIED OR RECOGNIZED EMPLOYEE ORGANIZATION WITHIN THIRTY DAYS OF THE DEDUCTION. A PUBLIC EMPLOYER SHALL ACCEPT A SIGNED AUTHORIZATION TO DEDUCT FROM THE SALARY OF A PUBLIC EMPLOYEE AN AMOUNT FOR THE PAYMENT OF HIS OR HER DUES IN ANY FORMAT PERMITTED BY ARTICLE THREE OF THE STATE TECHNOLOGY LAW. THE RIGHT TO SUCH MEMBERSHIP DUES DEDUCTION SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL: (I) AN INDIVIDUAL EMPLOYEE REVOKES MEMBERSHIP IN THE EMPLOYEE ORGAN- IZATION IN WRITING IN ACCORDANCE WITH THE TERMS OF THE SIGNED AUTHORI- ZATION; OR (II) THE INDIVIDUAL EMPLOYEE IS NO LONGER EMPLOYED BY THE PUBLIC EMPLOYER, PROVIDED THAT IF SUCH EMPLOYEE IS, WITHIN A PERIOD OF ONE YEAR, EMPLOYED BY THE SAME PUBLIC EMPLOYER IN A POSITION REPRESENTED BY THE SAME EMPLOYEE ORGANIZATION, THE RIGHT TO SUCH DUES DEDUCTION SHALL BE AUTOMATICALLY REINSTATED. (C) SHOULD THE INDIVIDUAL EMPLOYEE WHO HAS SIGNED A DUES DEDUCTION AUTHORIZATION CARD EITHER BE REMOVED FROM A PUBLIC EMPLOYER'S PAYROLL OR OTHERWISE PLACED ON ANY TYPE OF INVOLUNTARY OR VOLUNTARY LEAVE OF ABSENCE, WHETHER PAID OR UNPAID, SUCH PUBLIC EMPLOYEE'S MEMBERSHIP IN AN EMPLOYEE ORGANIZATION SHALL BE CONTINUED UPON THAT PUBLIC EMPLOYEE'S RETURN TO THE PAYROLL OR RESTORATION TO ACTIVE DUTY FROM SUCH A LEAVE OF ABSENCE. 4. (A) WITHIN THIRTY DAYS OF A PUBLIC EMPLOYEE FIRST BEING EMPLOYED OR REEMPLOYED BY A PUBLIC EMPLOYER, OR WITHIN THIRTY DAYS OF BEING PROMOTED OR TRANSFERRED TO A NEW BARGAINING UNIT, THE PUBLIC EMPLOYER SHALL NOTI- FY THE EMPLOYEE ORGANIZATION, IF ANY, THAT REPRESENTS THAT BARGAINING UNIT OF THE EMPLOYEE'S NAME, ADDRESS, JOB TITLE, EMPLOYING AGENCY, DEPARTMENT OR OTHER OPERATING UNIT, AND WORK LOCATION; AND (B) WITHIN THIRTY DAYS OF PROVIDING THE NOTICE IN PARAGRAPH A OF THIS SUBDIVISION, A PUBLIC EMPLOYER SHALL ALLOW A DULY APPOINTED REPRESEN- TATIVE OF THE EMPLOYEE ORGANIZATION THAT REPRESENTS THAT BARGAINING UNIT TO MEET WITH SUCH EMPLOYEE FOR A REASONABLE AMOUNT OF TIME DURING HIS OR HER WORK TIME WITHOUT CHARGE TO LEAVE CREDITS, UNLESS OTHERWISE SPECI- FIED WITHIN AN AGREEMENT BARGAINED COLLECTIVELY UNDER ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW, PROVIDED HOWEVER THAT ARRANGEMENTS FOR SUCH S. 7509--C 192 A. 9509--C MEETING MUST BE SCHEDULED IN CONSULTATION WITH A DESIGNATED REPRESEN- TATIVE OF THE PUBLIC EMPLOYER. 5. (A) IF ANY CLAUSE, SENTENCE, PARAGRAPH, OR SUBDIVISION OF THIS SECTION SHALL BE ADJUDGED BY A COURT OF COMPETENT JURISDICTION TO BE UNCONSTITUTIONAL OR OTHERWISE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALIDATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH, OR SUBDIVISION OF THIS SECTION DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE BEEN RENDERED. (B) IF ANY CLAUSE, SENTENCE, PARAGRAPH, OR PART OF A SIGNED AUTHORI- ZATION SHALL BE ADJUDGED BY A COURT OF COMPETENT JURISDICTION TO BE UNCONSTITUTIONAL OR OTHERWISE INVALID, SUCH DETERMINATION SHALL NOT AFFECT, IMPAIR OR INVALIDATE THE REMAINDER OF SUCH SIGNED AUTHORIZATION BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE, PARA- GRAPH, OR PART OF THE SIGNED AUTHORIZATION DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE BEEN RENDERED. § 2. Subdivision 1 of section 93-b of the general municipal law, as amended by chapter 632 of the laws of 1964, is amended to read as follows: 1. The fiscal or disbursing officer of every municipal corporation or other civil division or political subdivision of the state is hereby authorized to deduct from the wage or salary of any employee of such municipal corporation or civil division or political subdivision of the state such amount that such employee may specify in writing filed with such fiscal or disbursing officer for the payment of dues in a duly organized association or organization of civil service employees and to transmit the sum so deducted to the said association or organization. Any such written authorization [may be withdrawn by such employee or member at any time by filing written notice of such withdrawal with the fiscal or disbursing officer] SHALL REMAIN IN EFFECT IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION TWO HUNDRED EIGHT OF THE CIVIL SERVICE LAW. § 3. Subdivision 2 of section 201 of the state finance law, as amended by chapter 233 of the laws of 1992, is amended to read as follows: 2. The comptroller is hereby authorized to deduct from the salary of any employee of the state such amount as such employee may specify in writing filed in a manner determined by the comptroller for the payment of membership dues in a duly organized association or organization of civil service employees or faculty members of the state university and to transmit the sums so deducted to the said association or organiza- tion. Any such written authorization [may be withdrawn by such employee at any time upon filing written notice of such withdrawal in a manner determined by the comptroller] SHALL REMAIN IN EFFECT IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION TWO HUNDRED EIGHT OF THE CIVIL SERVICE LAW. The foregoing notwithstanding, and subject to the provisions of article fourteen of the civil service law, such deductions and transmittals shall be terminated as to one or more such associations or organizations in accordance with the written directions of the director of employee relations, not more than thirty days after receipt by the comptroller of such directions. The deductions and transmittals which were the subject of such directions shall not thereafter be resumed without the written approval of such director. § 4. Subdivision 2 of section 209-a of the civil service law, as amended by chapter 467 of the laws of 1990, is amended to read as follows: 2. Improper employee organization practices. It shall be an improper practice for an employee organization or its agents deliberately (a) to S. 7509--C 193 A. 9509--C interfere with, restrain or coerce public employees in the exercise of the rights granted in section two hundred two, or to cause, or attempt to cause, a public employer to do so PROVIDED, HOWEVER, THAT AN EMPLOYEE ORGANIZATION DOES NOT INTERFERE WITH, RESTRAIN OR COERCE PUBLIC EMPLOY- EES WHEN IT LIMITS ITS SERVICES TO AND REPRESENTATION OF NON-MEMBERS IN ACCORDANCE WITH THIS SUBDIVISION; (b) to refuse to negotiate collective- ly in good faith with a public employer, provided it is the duly recog- nized or certified representative of the employees of such employer; or (c) to breach its duty of fair representation to public employees under this article. NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE CONTRA- RY, AN EMPLOYEE ORGANIZATION'S DUTY OF FAIR REPRESENTATION TO A PUBLIC EMPLOYEE IT REPRESENTS BUT WHO IS NOT A MEMBER OF THE EMPLOYEE ORGANIZA- TION SHALL BE LIMITED TO THE NEGOTIATION OR ENFORCEMENT OF THE TERMS OF AN AGREEMENT WITH THE PUBLIC EMPLOYER. NO PROVISION OF THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE AN EMPLOYEE ORGANIZATION TO PROVIDE REPRE- SENTATION TO A NON-MEMBER (I) DURING QUESTIONING BY THE EMPLOYER, (II) IN STATUTORY OR ADMINISTRATIVE PROCEEDINGS OR TO ENFORCE STATUTORY OR REGULATORY RIGHTS, OR (III) IN ANY STAGE OF A GRIEVANCE, ARBITRATION OR OTHER CONTRACTUAL PROCESS CONCERNING THE EVALUATION OR DISCIPLINE OF A PUBLIC EMPLOYEE WHERE THE NON-MEMBER IS PERMITTED TO PROCEED WITHOUT THE EMPLOYEE ORGANIZATION AND BE REPRESENTED BY HIS OR HER OWN ADVOCATE. NOR SHALL ANY PROVISION OF THIS ARTICLE PROHIBIT AN EMPLOYEE ORGANIZATION FROM PROVIDING LEGAL, ECONOMIC OR JOB-RELATED SERVICES OR BENEFITS BEYOND THOSE PROVIDED IN THE AGREEMENT WITH A PUBLIC EMPLOYER ONLY TO ITS MEMBERS. § 5. Nothing in this act shall be construed to impede, infringe or diminish the rights and benefits which accrue to an employee organiza- tion through a bonafide collective bargaining agreement. § 6. This act shall take effect immediately. PART SSS Section 1. Subdivision 2 of section 3204 of the education law, as amended by chapter 827 of the laws of 1982, is amended to read as follows: 2. Quality and language of instruction; text-books. (I) Instruction may be given only by a competent teacher. In the teaching of the subjects of instruction prescribed by this section, English shall be the language of instruction, and text-books used shall be written in English, except that for a period of three years, which period may be extended by the commissioner with respect to individual pupils, upon application therefor by the appropriate school authorities, to a period not in excess of six years, from the date of enrollment in school, pupils who, by reason of foreign birth or ancestry have limited English proficiency, shall be provided with instructional programs as specified in subdivision two-a of this section and the regulations of the commis- sioner. The purpose of providing such pupils with instruction shall be to enable them to develop academically while achieving competence in the English language. Instruction given to a minor elsewhere than at a public school shall be at least substantially equivalent to the instruc- tion given to minors of like age and attainments at the public schools of the city or district where the minor resides. (II) FOR PURPOSES OF CONSIDERING SUBSTANTIAL EQUIVALENCE PURSUANT TO THIS SUBDIVISION FOR NONPUBLIC ELEMENTARY AND MIDDLE SCHOOLS THAT ARE: (1) NON-PROFIT CORPORATIONS, (2) HAVE A BI-LINGUAL PROGRAM, AND (3) HAVE AN EDUCATIONAL PROGRAM THAT EXTENDS FROM NO LATER THAN NINE A.M. UNTIL S. 7509--C 194 A. 9509--C NO EARLIER THAN FOUR P.M. FOR GRADES ONE THROUGH THREE, AND NO EARLIER THAN FIVE THIRTY P.M. FOR GRADES FOUR THROUGH EIGHT, ON THE MAJORITY OF WEEKDAYS, THE DEPARTMENT SHALL CONSIDER THE FOLLOWING, BUT NOT LIMITED TO: IF THE CURRICULUM PROVIDES ACADEMICALLY RIGOROUS INSTRUCTION THAT DEVELOPS CRITICAL THINKING SKILLS IN THE SCHOOL'S STUDENTS, TAKING INTO ACCOUNT THE ENTIRETY OF THE CURRICULUM, OVER THE COURSE OF ELEMENTARY AND MIDDLE SCHOOL, INCLUDING INSTRUCTION IN ENGLISH THAT WILL PREPARE PUPILS TO READ FICTION AND NONFICTION TEXT FOR INFORMATION AND TO USE THAT INFORMATION TO CONSTRUCT WRITTEN ESSAYS THAT STATE A POINT OF VIEW OR SUPPORT AN ARGUMENT; INSTRUCTION IN MATHEMATICS THAT WILL PREPARE PUPILS TO SOLVE REAL WORLD PROBLEMS USING BOTH NUMBER SENSE AND FLUENCY WITH MATHEMATICAL FUNCTIONS AND OPERATIONS; INSTRUCTION IN HISTORY BY BEING ABLE TO INTERPRET AND ANALYZE PRIMARY TEXT TO IDENTIFY AND EXPLORE IMPORTANT EVENTS IN HISTORY, TO CONSTRUCT WRITTEN ARGUMENTS USING THE SUPPORTING INFORMATION THEY GET FROM PRIMARY SOURCE MATERIAL, DEMON- STRATE AN UNDERSTATING OF THE ROLE OF GEOGRAPHY AND ECONOMICS IN THE ACTIONS OF WORLD CIVILIZATIONS, AND AN UNDERSTANDING OF CIVICS AND THE RESPONSIBILITIES OF CITIZENS IN WORLD COMMUNITIES; AND INSTRUCTION IN SCIENCE BY LEARNING HOW TO GATHER, ANALYZE AND INTERPRET OBSERVABLE DATA TO MAKE INFORMED DECISIONS AND SOLVE PROBLEMS MATHEMATICALLY, USING DEDUCTIVE AND INDUCTIVE REASONING TO SUPPORT A HYPOTHESIS, AND HOW TO DIFFERENTIATE BETWEEN CORRELATIONAL AND CAUSAL RELATIONSHIPS. (III) FOR PURPOSES OF CONSIDERING SUBSTANTIAL EQUIVALENCE PURSUANT TO THIS SUBDIVISION FOR NONPUBLIC HIGH SCHOOLS THAT: (1) ARE ESTABLISHED FOR PUPILS IN HIGH SCHOOL WHO HAVE GRADUATED FROM AN ELEMENTARY SCHOOL THAT PROVIDES INSTRUCTION AS DESCRIBED IN THIS SECTION, (2) ARE A NON- PROFIT CORPORATION, (3) HAVE A BI-LINGUAL PROGRAM, AND (4) HAVE AN EDUCATIONAL PROGRAM THAT EXTENDS FROM NO LATER THAN NINE A.M. UNTIL NO EARLIER THAN SIX P.M. ON THE MAJORITY OF WEEKDAYS THE DEPARTMENT SHALL CONSIDER THE FOLLOWING BUT NOT LIMITED TO: IF THE CURRICULUM PROVIDES ACADEMICALLY RIGOROUS INSTRUCTION THAT DEVELOPS CRITICAL THINKING SKILLS IN THE SCHOOL'S STUDENTS, THE OUTCOMES OF WHICH, TAKING INTO ACCOUNT THE ENTIRETY OF THE CURRICULUM, RESULT IN A SOUND BASIC EDUCATION. (IV) NOTHING HEREIN SHALL BE CONSTRUED TO ENTITLE OR PERMIT ANY SCHOOL TO RECEIVE AN INCREASE IN MANDATED SERVICES AID PURSUANT TO 8 NYCRR 176 ON ACCOUNT OF PROVIDING A LONGER SCHOOL DAY. (V) THE COMMISSIONER SHALL BE THE ENTITY THAT DETERMINES WHETHER NONPUBLIC ELEMENTARY AND SECONDARY SCHOOLS ARE IN COMPLIANCE WITH THE ACADEMIC REQUIREMENTS SET FORTH IN PARAGRAPHS (II) AND (III) OF THIS SUBDIVISION. § 2. This act shall take effect immediately. PART TTT Intentionally Omitted PART UUU Section 1. Subdivision 3 of section 2825-f of the public health law, as added by section 1 of part Q of a chapter of the laws of 2018 amend- ing the public health law relating to the health care facility transfor- mation program, as proposed in legislative bill numbers S.7507-C and A.9507-C, is amended to read as follows: 3. Notwithstanding section one hundred sixty-three of the state finance law or any inconsistent provision of law to the contrary, up to [four hundred seventy-five] FIVE HUNDRED TWENTY-FIVE million dollars of S. 7509--C 195 A. 9509--C the funds appropriated for this program shall be awarded without a competitive bid or request for proposal process for grants to health care providers (hereafter "applicants"). Provided, however, that a mini- mum of: (a) sixty million dollars of total awarded funds shall be made to community-based health care providers, 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 thir- ty-one of the mental hygiene law; a substance use disorder treatment clinic licensed or granted an operating certificate under article thir- ty-two of the mental hygiene law; a primary care provider; a clinic licensed or granted an operating certificate under article sixteen of the mental hygiene law; a home care provider certified or licensed pursuant to article thirty-six of this chapter; or hospices licensed or granted an operating certificate pursuant to article forty of this chap- ter and (b) forty-five million dollars of the total awarded funds shall be made to residential health care facilities. § 2. This act shall take effect on the same date and in the same manner as Part Q of a chapter of the laws of 2018, amending the public health law relating to the health care facility transformation program, as proposed in legislative bill numbers S.7507-C and A.9507-C, takes effect. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Parts A through UUU of this act shall be as specifically set forth in the last section of such Parts.
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