Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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Apr 12, 2019 |
signed chap.59 |
Apr 01, 2019 |
delivered to governor |
Mar 31, 2019 |
returned to senate passed assembly message of necessity motion to amend lost motion to amend lost ordered to third reading rules cal.54 substituted for a2009c |
Mar 31, 2019 |
substituted by s1509c rules report cal.54 reported reported referred to rules print number 2009c |
Mar 31, 2019 |
amend (t) and recommit to ways and means |
Mar 11, 2019 |
print number 2009b |
Mar 11, 2019 |
amend (t) and recommit to ways and means |
Feb 19, 2019 |
print number 2009a |
Feb 19, 2019 |
amend (t) and recommit to ways and means |
Jan 18, 2019 |
referred to ways and means |
Assembly Bill A2009
Signed By Governor2019-2020 Legislative Session
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2019-2020 state fiscal year
download bill text pdfSponsored By
There are no sponsors of this bill.
Archive: Last Bill Status Via S1509 - 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 31, 2019
aye (39)- Addabbo Jr.
- Bailey
- Benjamin
- Biaggi
- Breslin
- Brooks
- Carlucci
- Comrie
- Gaughran
- Gianaris
- Gounardes
- Harckham
- Hoylman-Sigal
- Jackson
- Kaminsky
- Kaplan
- Kavanagh
- Kennedy
- Krueger
- Liu
- Martinez
- May
- Mayer
- Metzger
- Montgomery
- Myrie
- Parker
- Persaud
- Ramos
- Rivera
- Salazar
- Sanders Jr.
- Savino
- Sepúlveda
- Serrano
- Skoufis
- Stavisky
- Stewart-Cousins
- Thomas
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Mar 31, 2019 - Finance Committee Vote
S150915Aye8Nay0Aye with Reservations0Absent0Excused0Abstained -
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Bill Amendments
2019-A2009 - Details
- See Senate Version of this Bill:
- S1509
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2019-A2009 - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2019-2020 state fiscal year; relates to the effectiveness of provisions relating to mandatory electronic filing of tax documents (Part A); relates to amending the employee training incentive program (Part B); relates to including in the apportionment fraction receipts constituting net global intangible low-taxed income (Part C)
2019-A2009 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 1509 A. 2009 S E N A T E - A S S E M B L Y January 18, 2019 ___________ 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 part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, in relation to making perma- nent provisions relating to mandatory electronic filing of tax docu- ments; and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto (Part A); to amend the economic development law, in relation to the employee training incentive program (Part B); to amend the tax law and the administrative code of the city of New York, in relation to including in the apportionment fraction receipts constituting net global intan- gible low-taxed income (Part C); to amend the tax law and the adminis- trative code of the city of New York, in relation to the adjusted basis for property used to determine whether a manufacturer is a qual- ified New York manufacturer (Part D); to amend part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program, in relation to extending the effectiveness thereof (Part E); to amend the tax law in relation to the inclusion in a decedent's New York gross estate any qualified terminable interest property for which a prior deduction was allowed and certain pre-death gifts (Part F); to amend the tax law, in relation to requiring marketplace providers to collect sales tax (Part G); to amend the tax law, in relation to eliminating the reduced tax rates under the sales and use tax with respect to certain gas and electric service; and to repeal certain provisions of the tax law and the administrative code of the city of New York related thereto (Part H); to amend the real property tax law, in relation to the determination and use of state equalization rates (Part I); to amend the real property tax law and local finance law, in relation to local option disaster assessment relief (Subpart A); to amend the real property tax law, in relation to authorizing agreements
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12574-01-9 S. 1509 2 A. 2009 for assessment review services (Subpart B); to amend the real property tax law, in relation to the training of assessors and county directors of real property tax services (Subpart C); to amend the real property tax law, in relation to providing certain notifications electronically (Subpart D); to amend the real property tax law, in relation to the valuation and taxable status dates of special franchise property (Subpart E); and to amend the real property tax law, in relation to the reporting requirements of power plants (Subpart F) (Part J); to repeal section 3-d of the general municipal law, relating to certif- ication of compliance with tax levy limit (Part K); to amend the tax law, in relation to creating an employer-provided child care credit (Part L); to amend the tax law, in relation to including gambling winnings in New York source income and requiring withholding thereon (Part M); to amend the tax law, in relation to the farm workforce retention credit (Part N); to amend the tax law, in relation to updat- ing tax preparer penalties; to amend part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related information and relating to the voluntary compliance initi- ative, in relation to eliminating the expiration thereof; and to repeal certain provisions of the tax law, relating to tax preparer penalties (Part O); to amend the tax law, in relation to extending the top personal income tax rate for five years (Part P); to amend the tax law and the administrative code of the city of New York, in relation to extending for five years the limitations on itemized deductions for individuals with incomes over one million dollars (Part Q); to amend the tax law, in relation to extending the clean heating fuel credit for three years (Part R); to repeal subdivision (e) of section 23 of part U of chapter 61 of the laws of 2011 amending the real property tax law and other laws relating to establishing standards for elec- tronic tax administration (Part S); to amend the cooperative corpo- rations law and the rural electric cooperative law, in relation to eliminating certain license fees (Part T); to amend the tax law, in relation to a credit for the rehabilitation of historic properties for state owned property leased to private entities (Part U); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part V); to amend the mental hygiene law and the tax law, in relation to the creation and adminis- tration of a tax credit for employment of eligible individuals in recovery from a substance use disorder (Part W); to amend the tax law and the administrative code of the city of New York, in relation to excluding from entire net income certain contributions to the capital of a corporation (Part X); to amend the tax law, in relation to estab- lishing a conditional tax on carried interest (Part Y); to amend the tax law, the administrative code of the city of New York, and chapter 369 of the laws of 2018 amending the tax law relating to unrelated business taxable income of a taxpayer, in relation to making technical corrections thereto (Part Z); to amend the real property tax law, in relation to tax exemptions for energy systems (Part AA); to amend the racing, pari-mutuel wagering and breeding law, in relation to employ- ees of the state gaming commission (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the thoroughbred and standardbred breeding funds (Part CC); to amend the racing, pari- mutuel wagering and breeding law, in relation to the office of the gaming inspector general; and to repeal title 9 of article 13 of the racing, pari-mutuel wagering and breeding law relating to the gaming inspector general (Subpart A); to amend the racing, pari-mutuel wager- S. 1509 3 A. 2009 ing and breeding law, in relation to appointees to the thoroughbred breeding and development fund (Subpart B); to amend the public offi- cers law and the racing, pari-mutuel wagering and breeding law, in relation to the Harry M. Zweig memorial fund (Subpart C); and to amend the tax law, in relation to the prize payment amounts and revenue distributions of lottery game sales, and use of unclaimed prize funds (Subpart D)(Part DD); 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 EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to the deductibility of promotional credits (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to the operations of off-track betting corporations (Part GG); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of- state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposi- tion of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part HH); to amend the racing, pari-mutuel wagering and breeding law, in relation to equine drug testing standards (Part II); to amend part EE of chap- ter 59 of the laws of 2018, amending the racing, pari-mutuel wagering and breeding law, relating to adjusting the franchise payment estab- lishing an advisory committee to review the structure, operations and funding of equine drug testing and research, in relation to the date of delivery for recommendations; and to amend the racing, pari-mutuel wagering and breeding law, in relation to the advisory committee on equine drug testing, and equine lab testing provider restrictions removal (Part JJ); to amend the racing, pari-mutuel wagering and breeding law, in relation to state gaming commission occupational licenses (Part KK); to amend the real property tax law and the tax law, in relation to the determination of STAR tax savings (Part LL); to amend the tax law, in relation to cooperative housing corporation information returns (Part MM); to amend the tax law, in relation to making a technical correction to the enhanced real property tax circuit breaker credit (Part NN); to amend the tax law, in relation to mobile home reporting requirements (Part OO); to amend the real prop- erty tax law and the tax law, in relation to eligibility for STAR exemptions and credits (Part PP); to amend the real property tax law and the tax law, in relation to authorizing the disclosure of certain information to assessors (Part QQ); to amend the real property tax law and the tax law, in relation to the income limits for STAR benefits (Part RR); to amend the real property tax law, in relation to clarify- ing certain notices on school tax bills (Part SS); to amend the real property tax law and the tax law, in relation to making the STAR program more accessible to taxpayers (Part TT); to amend the public health law, in relation to increasing the purchasing age for tobacco products and electronic cigarettes from eighteen to twenty-one; prohibiting sales of tobacco products and electronic cigarettes in all pharmacies; prohibiting the acceptance of price reduction instruments S. 1509 4 A. 2009 for both tobacco products and electronic cigarettes; prohibiting the display of tobacco products or electronic cigarettes in stores; clari- fying that the department of health has the authority to promulgate regulations that restrict the sale or distribution of electronic ciga- rettes or electronic liquids that have a characterizing flavor, and the use of names for characterizing flavors; prohibiting smoking inside and on the grounds of all hospitals licensed or operated by the office of mental health; taxing electronic liquid; and requiring that electronic cigarettes be sold only through licensed vapor products retailers; to amend the general business law, in relation to the pack- aging of vapor products; to amend the tax law, in relation to imposing a supplemental tax on vapor products; to amend the state finance law, in relation to adding revenues from the supplemental tax on vapor products to the health care reform act resource fund; and repealing paragraph (e) of subdivison 1 of section 1399-cc of the public health law relating to the definitions of nicotine, electronic liquid and e-liquid (Part UU); relating to constituting a new chapter 7-A of the consolidated laws, in relation to the creation of a new office of cannabis management, as an independent entity within the division of alcoholic beverage control, providing for the licensure of persons authorized to cultivate, process, distribute and sell cannabis and the use of cannabis by persons aged twenty-one or older; to amend the public health law, in relation to the description of cannabis; to amend the vehicle and traffic law, in relation to making technical changes regarding the definition of cannabis; to amend the penal law, in relation to the qualification of certain offenses involving canna- bis and to exempt certain persons from prosecution for the use, consumption, display, production or distribution of cannabis; to amend the tax law, in relation to providing for the levying taxes on canna- bis; to amend the criminal procedure law, the civil practice law and rules, the general business law, the state finance law, the executive law, the penal law and the vehicle and traffic law, in relation to making conforming changes; to repeal sections 221.10 and 221.30 of the penal law relating to the criminal possession and sale of cannabis; to amend chapter 90 of the laws of 2014 amending the public health law, the tax law, the state finance law, the general business law, the penal law and the criminal procedure law relating to medical use of marihuana, in relation to the effectiveness thereof; to repeal para- graph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia; and making an appropriation therefor (Part VV); and to amend the tax law, in relation to imposing a special tax on passenger car rentals outside of the metropolitan commuter transportation district (Part WW) 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 2019-2020 state fiscal year. Each component is wholly contained within a Part identified as Parts A through WW. 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, including the effective date of the Part, which makes reference to a section "of this act", when used in connection with that particular S. 1509 5 A. 2009 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. Paragraph 10 of subsection (g) of section 658 of the tax law is REPEALED. § 2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin- istrative code of the city of New York is REPEALED. § 3. Paragraph 5 of subsection (u) of section 685 of the tax law is REPEALED. § 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis- trative code of the city of New York is REPEALED. § 5. Section 23 of part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, as amended by section 5 of part G of chapter 60 of the laws of 2016, is amended to read as follows: § 23. This act shall take effect immediately; provided, however, that: (a) the amendments to section 29 of the tax law made by section thir- teen of this act shall apply to tax documents filed or required to be filed on or after the sixtieth day after which this act shall have become a law [and shall expire and be deemed repealed December 31, 2019], provided however that the amendments to paragraph 4 of subdivi- sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of section 29 of the tax law made by section thirteen of this act with regard to individual taxpayers shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eighty-five percent; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission of the date of the issuance of such report 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; (b) sections fourteen, fifteen, sixteen and seventeen of this act shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; AND (c) sections fourteen-a and fifteen-a of this act shall take effect September 15, 2011 and expire and be deemed repealed December 31, 2012 but shall take effect only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is eighty-five percent or greater[; (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this act shall take effect January 1, 2020 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; and S. 1509 6 A. 2009 (e) sections twenty-one and twenty-one-a of this act shall expire and be deemed repealed December 31, 2019]. § 6. This act shall take effect immediately. PART B Section 1. Subdivision 3 of section 441 of the economic development law, as amended by section 1 of part L of chapter 59 of the laws of 2017, is amended to read as follows: 3. "Eligible training" means (a) training provided by THE BUSINESS ENTITY OR an approved provider that is: (i) to upgrade, retrain or improve the productivity of employees; (ii) provided to employees in connection with a significant capital investment by a participating business entity; (iii) determined by the commissioner to satisfy a business need on the part of a participating business entity; (iv) not designed to train or upgrade skills as required by a federal or state entity; (v) not training the completion of which may result in the awarding of a license or certificate required by law in order to perform a job func- tion; and (vi) not culturally focused training; or (b) an internship program in advanced technology [or], life sciences, SOFTWARE DEVELOPMENT OR CLEAN ENERGY approved by the commissioner and provided by THE BUSINESS ENTITY OR an approved provider, on or after August first, two thousand fifteen, to provide employment and experience opportunities for current students, recent graduates, and recent members of the armed forces. § 2. Paragraph (b) of subdivision 1 of section 442 of the economic development law, as amended by section 2 of part L of chapter 59 of the laws of 2017, is amended to read as follows: (b) The business entity must demonstrate that it is CONDUCTING ELIGI- BLE TRAINING OR obtaining eligible training from an approved provider; § 3. Paragraph (a) of subdivision 2 of section 443 of the economic development law, as added by section 1 of part O of chapter 59 of the laws of 2015, is amended to read as follows: (a) provide such documentation as the commissioner may require in order for the commissioner to determine that the business entity intends to CONDUCT ELIGIBLE TRAINING OR procure eligible training for its employees from an approved provider; § 4. This act shall take effect immediately. PART C Section 1. Section 210-A of the tax law is amended by adding a new subdivision 5-a to read as follows: 5-A. NET GLOBAL INTANGIBLE LOW-TAXED INCOME. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE APPORTIONMENT FRACTION AS PROVIDED IN THIS SUBDIVISION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRAC- TION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE APPORTIONMENT FRACTION. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE S. 1509 7 A. 2009 INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE. § 2. Section 11-654.2 of the administrative code of the city of New York is amended by adding a new subdivision 5-a to read as follows: 5-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE RECEIPTS FRACTION AS PROVIDED IN THIS SUBDIVISION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW- TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC- TION. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART D Section 1. Subparagraph (vi) of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 11 of part T of chap- ter 59 of the laws of 2015, is amended to read as follows: (vi) for taxable years beginning on or after January first, two thou- sand fourteen, the amount prescribed by this paragraph for a taxpayer [which] THAT is a qualified New York manufacturer, shall be computed at the rate of zero percent of the taxpayer's business income base. The term "manufacturer" shall mean a taxpayer [which] THAT during the taxa- ble year is principally engaged in the production of goods by manufac- turing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture or commercial fish- ing. However, the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity shall not be qualifying activities for a manufacturer under this subparagraph. Moreover, in the case of a combined report, the combined group shall be considered a "manufacturer" for purposes of this subparagraph only if the combined group during the taxable year is principally engaged in the activities set forth in this paragraph, or any combination thereof. A taxpayer or, in the case of a combined report, a combined group shall be "principally engaged" in activities described above if, during the taxable year, more than fifty percent of the gross receipts of the taxpayer or combined group, respec- tively, are derived from receipts from the sale of goods produced by such activities. In computing a combined group's gross receipts, inter- corporate receipts shall be eliminated. A "qualified New York manufac- turer" is a manufacturer [which] THAT has property in New York [which] THAT is described in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of section two hundred ten-B of this article and either (I) the adjusted basis of such property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (II) all of its real and personal property is located in New York. A taxpayer or, in the case of a combined report, a combined group, that does not satisfy the principally engaged test may be a qual- ified New York manufacturer if the taxpayer or the combined group employs during the taxable year at least two thousand five hundred employees in manufacturing in New York and the taxpayer or the combined S. 1509 8 A. 2009 group has property in the state used in manufacturing, the adjusted basis of which for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one hundred million dollars. § 2. Subparagraph 2 of paragraph (b) of subdivision 1 of section 210 of the tax law, as amended by section 18 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (2) For purposes of subparagraph one of this paragraph, the term "manufacturer" shall mean a taxpayer [which] THAT during the taxable year is principally engaged in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agricul- ture, horticulture, floriculture, viticulture or commercial fishing. Moreover, for purposes of computing the capital base in a combined report, the combined group shall be considered a "manufacturer" for purposes of this subparagraph only if the combined group during the taxable year is principally engaged in the activities set forth in this subparagraph, or any combination thereof. A taxpayer or, in the case of a combined report, a combined group shall be "principally engaged" in activities described above if, during the taxable year, more than fifty percent of the gross receipts of the taxpayer or combined group, respec- tively, are derived from receipts from the sale of goods produced by such activities. In computing a combined group's gross receipts, inter- corporate receipts shall be eliminated. A "qualified New York manufac- turer" is a manufacturer that has property in New York that is described in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of section two hundred ten-B of this article and either (i) the adjusted basis of that property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (ii) all of its real and personal property is located in New York. In addi- tion, a "qualified New York manufacturer" means a taxpayer that is defined as a qualified emerging technology company under paragraph (c) of subdivision one of section thirty-one hundred two-e of the public authorities law regardless of the ten million dollar limitation expressed in subparagraph one of such paragraph. A taxpayer or, in the case of a combined report, a combined group, that does not satisfy the principally engaged test may be a qualified New York manufacturer if the taxpayer or the combined group employs during the taxable year at least two thousand five hundred employees in manufacturing in New York and the taxpayer or the combined group has property in the state used in manu- facturing, the adjusted basis of which for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one hundred million dollars. § 3. Clause (ii) of subparagraph 4 of paragraph (k) of subdivision 1 of section 11-654 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: (ii) A "qualified New York manufacturing corporation" is a manufactur- ing corporation that has property in the state [which] THAT is described in subparagraph five of this paragraph and either (A) the adjusted basis of such property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (B) more than fifty [percentum] PERCENT of its real and personal property is located in the state. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART E S. 1509 9 A. 2009 Section 1. Section 5 of part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program is amended to read as follows: § 5. This act shall take effect January 1, 2015, and shall apply to taxable years beginning on and after that date; provided, however, that this act shall expire and be deemed repealed January 1, [2020] 2023. § 2. This act shall take effect immediately. PART F Section 1. Paragraph 3 of subsection (a) of section 954 of the tax law, as amended by section 2 of part BB of chapter 59 of the laws of 2015, is amended to read as follows: (3) Increased by the amount of any taxable gift under section 2503 of the internal revenue code not otherwise included in the decedent's federal gross estate, made during the three year period ending on the decedent's date of death, but not including any gift made: (A) when the decedent was not a resident of New York state; or (B) before April first, two thousand fourteen; or (C) that is real or tangible personal property having an actual situs outside New York state at the time the gift was made. Provided, however that this paragraph shall not apply to the estate of a [decendent] DECEDENT dying on or after January first, two thousand [nineteen] TWENTY-SIX. § 2. Subsection (a) of section 954 of the tax law is amended by adding a new paragraph 4 to read as follows: (4) INCREASED BY THE VALUE OF ANY PROPERTY NOT OTHERWISE ALREADY INCLUDED IN THE DECEDENT'S FEDERAL GROSS ESTATE IN WHICH THE DECEDENT HAD A QUALIFYING INCOME INTEREST FOR LIFE IF A DEDUCTION WAS ALLOWED ON THE RETURN OF THE TAX IMPOSED BY THIS ARTICLE WITH RESPECT TO THE TRANS- FER OF SUCH PROPERTY TO THE DECEDENT BY REASON OF THE APPLICATION OF PARAGRAPH (7) OF SUBSECTION (B) OF SECTION 2056 OF THE INTERNAL REVENUE CODE, AS MADE APPLICABLE TO THE TAX IMPOSED BY THIS ARTICLE BY SECTION NINE HUNDRED NINETY-NINE-A OF THIS ARTICLE, WHETHER OR NOT A FEDERAL ESTATE TAX RETURN WAS REQUIRED TO BE FILED BY THE ESTATE OF THE TRANS- FERRING SPOUSE. § 3. Subsection (c) of section 955 of the tax law, as added by section 4 of part X of chapter 59 of the laws of 2014, is amended to read as follows: (c) Qualified terminable interest property election.-- Except as otherwise provided in this subsection, the election referred to in para- graph (7) of subsection (b) of section 2056 of the internal revenue code shall not be allowed under this article unless such election was made with respect to the federal estate tax return required to be filed under the provisions of the internal revenue code. If such election was made for the purposes of the federal estate tax, then such election must also be made by the executor on the return of the tax imposed by this arti- cle. Where no federal estate tax return is required to be filed, the executor [may] MUST make the election referred to in such paragraph (7) with respect to the tax imposed by this article on the return of the tax imposed by this article. Any election made under this subsection shall be irrevocable. § 4. This act shall take effect immediately; provided however that section one of this act shall apply to estates of decedents dying on or after January 1, 2019 and sections two and three of this act shall apply to estates of decedents dying on or after April 1, 2019. S. 1509 10 A. 2009 PART G Section 1. Section 1101 of the tax law is amended by adding a new subdivision (e) to read as follows: (E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH MARKETPLACE SELLER OR SELLERS. A PERSON "FACILITATES A SALE OF TANGIBLE PERSONAL PROPERTY" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTER- NET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFIL- IATE 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, A "SALE OF TANGIBLE PERSONAL PROPERTY" SHALL NOT INCLUDE THE RENTAL OF A PASSENGER CAR AS DESCRIBED IN SECTION ELEVEN HUNDRED SIXTY OF THIS CHAPTER BUT SHALL INCLUDE A LEASE DESCRIBED IN SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. FOR PURPOSES OF THIS PARAGRAPH, PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN ANOTHER, 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. (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 section 1 of part X of chapter 59 of the laws of 2018, 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, 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 S. 1509 11 A. 2009 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: (A) 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 (B) 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: (A) THE MARKETPLACE SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (B) 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: (A) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A MARKETPLACE PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM THE MARKET- PLACE PROVIDER FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY, WITH RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY OCCURS IN THE STATE; AND (B) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN S. 1509 12 A. 2009 THE MARKETPLACE PROVIDER AND MARKETPLACE SELLER WILL HAVE THE SAME EFFECT AS A MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION. § 4. Section 1133 of the tax law is amended by adding a new subdivi- sion (f) to read as follows: (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR- MATION GIVEN TO THE MARKETPLACE PROVIDER BY THE MARKETPLACE SELLER. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE SELLER AND MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 46 of part K of chapter 61 of the laws of 2011, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE MARKETPLACE SELLER HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF- ICATE OF COLLECTION FROM THE MARKETPLACE PROVIDER OR THE MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE PROVIDER AND THE MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY IS ACCURATE. § 6. Section 1142 of the tax law is amended by adding a new subdivi- sion 15 to read as follows: (15) TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAVE 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. § 7. This act shall take effect immediately and shall apply to sales made on or after September 1, 2019. PART H S. 1509 13 A. 2009 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 is REPEALED. § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- trative code of the city of New York is REPEALED. § 5. This act shall take effect June 1, 2019, and shall apply to sales made and services rendered on and after that date, whether or not under a prior contract. PART I Section 1. Subdivision 3 of section 1204 of the real property tax law, as added by chapter 115 of the laws of 2018, is amended to read as follows: 3. Where the tentative equalization rate is not within plus or minus five [percentage points] PERCENT of the locally stated level of assess- ment, the assessor shall provide notice in writing to the local govern- ing body of any affected town, city, village, county and school district of the difference between the locally stated level of assessment and the tentative equalization rate. Such notice shall be made within ten days of the receipt of the tentative equalization rate, or within ten days of the filing of the tentative assessment roll, whichever is later, and shall provide the difference in the indicated total full value estimates of the locally stated level of assessment and the tentative equalization rate for the taxable property within each affected town, city, village, county and school district, where applicable. § 2. The real property tax law is amended by adding a new section 1211 to read as follows: § 1211. CONFIRMATION BY COMMISSIONER OF THE LOCALLY STATED LEVEL OF ASSESSMENT. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS TITLE, BEFORE THE COMMISSIONER DETERMINES A TENTATIVE EQUALIZATION RATE FOR A CITY, TOWN OR VILLAGE, HE OR SHE SHALL EXAMINE THE ACCURACY OF THE LOCALLY STATED LEVEL OF ASSESSMENT APPEARING ON THE TENTATIVE ASSESSMENT ROLL. IF THE COMMISSIONER CONFIRMS THE LOCALLY STATED LEVEL OF ASSESS- MENT, THEN AS SOON THEREAFTER AS IS PRACTICABLE, HE OR SHE SHALL ESTAB- LISH AND CERTIFY SUCH LOCALLY STATED LEVEL OF ASSESSMENT AS THE FINAL EQUALIZATION RATE FOR SUCH CITY, TOWN OR VILLAGE IN THE MANNER PROVIDED BY SECTIONS TWELVE HUNDRED TEN AND TWELVE HUNDRED TWELVE OF THIS TITLE. THE PROVISIONS OF SECTIONS TWELVE HUNDRED FOUR, TWELVE HUNDRED SIX AND TWELVE HUNDRED EIGHT OF THIS TITLE SHALL NOT APPLY IN SUCH CASES, UNLESS THE COMMISSIONER FINDS THAT THE FINAL ASSESSMENT ROLL DIFFERS FROM THE TENTATIVE ASSESSMENT ROLL TO AN EXTENT THAT RENDERS THE LOCALLY STATED LEVEL OF ASSESSMENT INACCURATE, AND RESCINDS THE FINAL EQUALIZATION RATE ON THAT BASIS. § 3. Paragraph (d) of subdivision 1 of section 1314 of the real prop- erty tax law, as amended by chapter 158 of the laws of 2002, is amended to read as follows: (d) (I) Such district superintendent shall also determine what propor- tion of any tax to be levied in such school district for school purposes S. 1509 14 A. 2009 during the current school year shall be levied upon each part of a city or town included in such school district by dividing the sum of the full valuation of real property in such part of a city or town by the total of all such full valuations of real property in such school district. PROVIDED, HOWEVER, THAT PRIOR TO THE LEVY OF TAXES, THE GOVERNING BODY OF THE SCHOOL DISTRICT MAY ADOPT A RESOLUTION DIRECTING SUCH PROPORTIONS TO BE BASED UPON THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER EITHER A THREE-YEAR PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE TWO PRIOR SCHOOL YEARS, OR OVER A FIVE-YEAR PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE FOUR PRIOR SCHOOL YEARS. ONCE SUCH A RESOLUTION HAS BEEN ADOPTED, THE PROPORTIONS FOR ENSUING SCHOOL YEARS SHALL CONTINUE TO BE BASED UPON THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER THE SELECTED PERIOD, UNLESS THE RESOLUTION PROVIDES OTHERWISE OR IS REPEALED. (II) Such proportions shall be expressed in the nearest exact ten thousandths and the school authorities of such school district shall levy such a proportion of any tax to be raised in the school district during the current school year upon each part of a city or town included in such school district as shall have been determined by the district superintendent. A new proportion shall be determined for each school year thereafter by the district superintendent in accordance with the provisions of this section by the use of the latest state equalization rates. In any such school district that is not within the jurisdiction of a district superintendent of schools, the duties which would other- wise be performed by the district superintendent under the provisions of this section, shall be performed by the school authorities of such district. § 4. This act shall take effect immediately. PART J Section 1. This Part enacts into law major components of legislation relating to the improvement of the administration of real property taxa- tion in accordance with the real property tax law and other laws relat- ing thereto. Each component is wholly contained within a Subpart identi- fied as Subparts A through F. 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 real property tax law is amended by adding a new section 497 to read as follows: § 497. ASSESSMENT RELIEF IN STATE DISASTER EMERGENCIES. 1. NOTWITH- STANDING ANY PROVISION OF LAW TO THE CONTRARY, DURING A STATE DISASTER EMERGENCY AS DEFINED BY SECTION TWENTY OF THE EXECUTIVE LAW, AN ELIGIBLE MUNICIPALITY MAY EXERCISE THE PROVISIONS OF THIS SECTION IF ITS GOVERN- ING BODY, BY THE SIXTIETH DAY FOLLOWING THE DATE UPON WHICH THE GOVERNOR DECLARES A STATE DISASTER EMERGENCY, PASSES A LOCAL LAW OR ORDINANCE, OR IN THE CASE OF A SCHOOL DISTRICT A RESOLUTION, ADOPTING THE PROVISIONS OF THIS SECTION. AN ELIGIBLE MUNICIPALITY MAY PROVIDE ASSESSMENT RELIEF S. 1509 15 A. 2009 FOR REAL PROPERTY THAT IS IMPACTED BY THE DISASTER THAT LED TO THE DECLARATION OF THE STATE DISASTER EMERGENCY, AND THAT IS LOCATED WITHIN SUCH MUNICIPALITY, AS PROVIDED IN SUBPARAGRAPHS (I), (II), (III) OR (IV) OF PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION ONLY IF ITS GOVERNING BODY SPECIFICALLY ELECTS TO DO SO AS PART OF SUCH LOCAL LAW, ORDINANCE OR RESOLUTION. A COPY OF ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL BE FILED WITH THE COMMISSIONER WITHIN TEN DAYS AFTER THE ADOPTION THEREOF. 2. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: A. "ELIGIBLE COUNTY" SHALL MEAN A COUNTY, OTHER THAN A COUNTY WHOLLY CONTAINED WITHIN A CITY, SPECIFICALLY REFERENCED WITHIN A DECLARATION BY THE GOVERNOR OF A STATE DISASTER EMERGENCY. B. "ELIGIBLE MUNICIPALITY" SHALL MEAN A MUNICIPAL CORPORATION, AS DEFINED BY SUBDIVISION TEN OF SECTION ONE HUNDRED TWO OF THIS CHAPTER, THAT IS EITHER: (I) AN ELIGIBLE COUNTY; OR (II) A CITY, TOWN, VILLAGE, SPECIAL DISTRICT, OR SCHOOL DISTRICT THAT IS WHOLLY OR PARTLY CONTAINED WITHIN AN ELIGIBLE COUNTY. C. "IMPACTED TAX ROLL" SHALL MEAN THE FINAL ASSESSMENT ROLL THAT SATISFIES BOTH OF THE FOLLOWING CONDITIONS: (A) THE ROLL IS BASED UPON A TAXABLE STATUS DATE OCCURRING PRIOR TO A DISASTER THAT IS THE SUBJECT OF A DECLARATION BY THE GOVERNOR OF A STATE DISASTER EMERGENCY; AND (B) TAXES LEVIED UPON THAT ROLL BY OR ON BEHALF OF A PARTICIPATING MUNICI- PALITY ARE PAYABLE WITHOUT INTEREST ON OR AFTER THE DATE OF THE DISAS- TER. D. "PARTICIPATING MUNICIPALITY" SHALL MEAN AN ELIGIBLE MUNICIPALITY THAT HAS PASSED A LOCAL LAW, ORDINANCE, OR RESOLUTION TO PROVIDE ASSESS- MENT RELIEF TO PROPERTY OWNERS WITHIN SUCH ELIGIBLE MUNICIPALITY PURSU- ANT TO THE PROVISIONS OF THIS SECTION. E. "TOTAL ASSESSED VALUE" SHALL MEAN THE TOTAL ASSESSED VALUE OF THE PARCEL PRIOR TO ANY AND ALL EXEMPTION ADJUSTMENTS. F. "IMPROVED VALUE" SHALL MEAN THE MARKET VALUE OF THE REAL PROPERTY IMPROVEMENTS EXCLUDING THE LAND. G. "PROPERTY" SHALL MEAN "REAL PROPERTY", "PROPERTY" OR "LAND" AS DEFINED UNDER PARAGRAPHS (A) THROUGH (G) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THIS CHAPTER. 3. ASSESSMENT RELIEF FOR DISASTER VICTIMS IN AN ELIGIBLE COUNTY. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE REAL PROPER- TY IS IMPACTED BY A DISASTER THAT LED TO THE DECLARATION OF A STATE DISASTER EMERGENCY, AND SUCH PROPERTY IS LOCATED WITHIN A PARTICIPATING MUNICIPALITY, ASSESSMENT RELIEF SHALL BE GRANTED AS FOLLOWS: (I) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR REAL PROPERTY THAT LOST AT LEAST TEN PERCENT BUT LESS THAN TWENTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY FIFTEEN PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (II) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR REAL PROPERTY THAT LOST AT LEAST TWENTY PERCENT BUT LESS THAN THIRTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY TWENTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (III) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESS- MENT RELIEF FOR REAL PROPERTY THAT LOST AT LEAST THIRTY PERCENT BUT LESS THAN FORTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED S. 1509 16 A. 2009 VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY THIRTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (IV) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR REAL PROPERTY THAT LOST AT LEAST FORTY PERCENT BUT LESS THAN FIFTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY FORTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (V) IF THE PROPERTY LOST AT LEAST FIFTY BUT LESS THAN SIXTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY FIFTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (VI) IF THE PROPERTY LOST AT LEAST SIXTY BUT LESS THAN SEVENTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY SIXTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (VII) IF THE PROPERTY LOST AT LEAST SEVENTY BUT LESS THAN EIGHTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY SEVENTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (VIII) IF THE PROPERTY LOST AT LEAST EIGHTY BUT LESS THAN NINETY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY EIGHTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (IX) IF THE PROPERTY LOST AT LEAST NINETY BUT LESS THAN ONE HUNDRED PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY NINETY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (X) IF THE PROPERTY LOST ONE HUNDRED PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY ONE HUNDRED PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (XI) THE PERCENTAGE LOSS IN IMPROVED VALUE FOR THIS PURPOSE SHALL BE ADOPTED BY THE ASSESSOR FROM A WRITTEN FINDING OF THE FEDERAL EMERGENCY MANAGEMENT AGENCY OR, WHERE NO SUCH FINDING EXISTS, SHALL BE DETERMINED BY THE ASSESSOR IN THE MANNER PROVIDED BY THIS SECTION, SUBJECT TO REVIEW BY THE BOARD OF ASSESSMENT REVIEW. (XII) WHERE THE ASSESSED VALUE OF A PROPERTY IS REDUCED PURSUANT TO THIS SECTION, THE DIFFERENCE BETWEEN THE PROPERTY'S ASSESSED VALUE AND ITS REDUCED ASSESSED VALUE SHALL BE EXEMPT FROM TAXATION. NO REDUCTION IN ASSESSED VALUE SHALL BE GRANTED PURSUANT TO THIS SECTION EXCEPT AS SPECIFIED ABOVE FOR SUCH COUNTIES. NO REDUCTION IN ASSESSED VALUE SHALL BE GRANTED PURSUANT TO THIS SECTION FOR PURPOSES OF ANY COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT THAT HAS NOT ADOPTED THE PROVISIONS OF THIS SECTION. (B) TO RECEIVE SUCH RELIEF PURSUANT TO THIS SECTION, A PROPERTY OWNER IN A PARTICIPATING MUNICIPALITY SHALL SUBMIT A WRITTEN REQUEST TO THE ASSESSOR ON A FORM PRESCRIBED BY THE COMMISSIONER WITHIN ONE HUNDRED TWENTY DAYS FOLLOWING THE DATE UPON WHICH THE STATE DISASTER EMERGENCY WAS DECLARED BY THE GOVERNOR, PROVIDED, HOWEVER, THAT SUCH ONE HUNDRED TWENTY DAY PERIOD MAY BE EXTENDED TO A TOTAL OF UP TO ONE HUNDRED EIGHTY DAYS BY A LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED BY THE GOVERNING BODY OF THE ASSESSING UNIT. A COPY OF ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL BE FILED WITH THE COMMISSIONER. SUCH REQUEST SHALL S. 1509 17 A. 2009 ATTACH ANY AND ALL DETERMINATIONS BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY, AND ANY AND ALL REPORTS BY AN INSURANCE ADJUSTER, SHALL DESCRIBE IN REASONABLE DETAIL THE DAMAGE CAUSED TO THE PROPERTY BY THE DISASTER AND THE CONDITION OF THE PROPERTY FOLLOWING THE DISASTER, AND SHALL BE ACCOMPANIED BY SUPPORTING DOCUMENTATION, IF AVAILABLE. (C) UPON RECEIVING SUCH A REQUEST, THE ASSESSOR SHALL ADOPT THE FIND- ING BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY OR, IF SUCH FINDING DOES NOT EXIST, THE ASSESSOR SHALL MAKE A FINDING AS TO WHETHER THE PROPERTY LOST AT LEAST FIFTY PERCENT OF ITS IMPROVED VALUE OR, IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR REAL PROPERTY THAT LOST A LESSER PERCENTAGE OF IMPROVED VALUE SUCH LESSER PERCENTAGE OF ITS IMPROVED VALUE, AS A RESULT OF A DISASTER. THE ASSESSOR SHALL THEREAFTER ADOPT OR CLASSIFY THE PERCENTAGE LOSS OF IMPROVED VALUE WITH- IN ONE OF THE FOLLOWING RANGES: (I) AT LEAST TEN PERCENT BUT LESS THAN TWENTY PERCENT, PROVIDED THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE, (II) AT LEAST TWENTY PERCENT BUT LESS THAN THIRTY PERCENT, PROVIDED THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE, (III) AT LEAST THIRTY PERCENT BUT LESS THAN FORTY PERCENT, PROVIDED THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE, (IV) AT LEAST FORTY PERCENT BUT LESS THAN FIFTY PERCENT, PROVIDED THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE, (V) AT LEAST FIFTY PERCENT BUT LESS THAN SIXTY PERCENT, (VI) AT LEAST SIXTY PERCENT BUT LESS THAN SEVENTY PERCENT, (VII) AT LEAST SEVENTY PERCENT BUT LESS THAN EIGHTY PERCENT, (VIII) AT LEAST EIGHTY PERCENT BUT LESS THAN NINETY PERCENT, (IX) AT LEAST NINETY PERCENT BUT LESS THAN ONE HUNDRED PERCENT, OR (X) ONE HUNDRED PERCENT. (D) ON OR BEFORE THE THIRTIETH DAY AFTER THE LAST DATE FOR THE FILING OF REQUESTS FOR RELIEF PURSUANT TO THIS SECTION, THE ASSESSOR SHALL MAIL WRITTEN NOTICE OF SUCH FINDINGS TO THE PROPERTY OWNER AND PARTICIPATING MUNICIPALITY. THE NOTICE SHALL INDICATE THAT IF THE PROPERTY OWNER IS DISSATISFIED WITH THESE FINDINGS, HE OR SHE MAY FILE A COMPLAINT WITH THE BOARD OF ASSESSMENT REVIEW UP UNTIL THE DATE SPECIFIED IN SUCH NOTICE, WHICH DATE SHALL BE THE TWENTY-FIRST DAY AFTER THE LAST DATE FOR THE MAILING OF SUCH NOTICES. IF ANY COMPLAINTS ARE SO FILED, SUCH BOARD SHALL RECONVENE UPON TEN DAYS WRITTEN NOTICE TO THE PROPERTY OWNER AND ASSESSOR TO HEAR AND DETERMINE THE COMPLAINT, AND SHALL MAIL WRITTEN NOTICE OF ITS DETERMINATION TO THE ASSESSOR AND PROPERTY OWNER WITHIN FIFTEEN DAYS OF SUCH HEARING. THE PROVISIONS OF ARTICLE FIVE OF THIS CHAPTER SHALL GOVERN THE REVIEW PROCESS TO THE EXTENT PRACTICABLE. FOR THE PURPOSES OF THIS SECTION ONLY, THE APPLICANT MAY COMMENCE, WITHIN THIRTY DAYS OF MAILING OF A WRITTEN DETERMINATION, A PROCEEDING UNDER TITLE ONE OF ARTICLE SEVEN OF THIS CHAPTER OR, IF APPLICABLE, UNDER TITLE ONE-A OF ARTICLE SEVEN OF THIS CHAPTER. SECTIONS SEVEN HUNDRED TWENTY-SEVEN AND SEVEN HUNDRED THIRTY-NINE OF THIS CHAPTER SHALL NOT APPLY. (E) WHERE PROPERTY HAS LOST AT LEAST FIFTY PERCENT OF ITS IMPROVED VALUE OR, IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESS- MENT RELIEF FOR REAL PROPERTY THAT LOST A LESSER PERCENTAGE OF IMPROVED VALUE SUCH LESSER PERCENTAGE, DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS ON THE PROPERTY ON THE IMPACTED ASSESS- S. 1509 18 A. 2009 MENT ROLL SHALL BE REDUCED BY THE APPROPRIATE PERCENTAGE SPECIFIED IN PARAGRAPH (A) OF THIS SUBDIVISION, PROVIDED THAT ANY EXEMPTIONS THAT THE PROPERTY MAY BE RECEIVING SHALL BE ADJUSTED AS NECESSARY TO ACCOUNT FOR SUCH REDUCTION IN THE TOTAL ASSESSED VALUE. TO THE EXTENT THE TOTAL ASSESSED VALUE OF THE PROPERTY ORIGINALLY APPEARING ON SUCH ROLL EXCEEDS THE AMOUNT TO WHICH IT SHOULD BE REDUCED PURSUANT TO THIS SECTION, THE EXCESS SHALL BE CONSIDERED AN ERROR IN ESSENTIAL FACT AS DEFINED BY SUBDIVISION THREE OF SECTION FIVE HUNDRED FIFTY OF THIS CHAPTER. THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL ACCORDINGLY OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT SUCH PERSON TO MAKE THE APPROPRIATE CORRECTIONS. IF THE CORRECTION IS MADE AFTER TAXES ARE LEVIED BUT BEFORE SUCH TAXES ARE PAID, THE COLLECTING OFFICER SHALL BE AUTHORIZED AND DIRECTED TO CORRECT THE APPLICANT'S TAX BILL ACCORDINGLY. IF THE CORRECTION IS MADE AFTER TAXES ARE PAID, THE AUTHORITIES OF EACH PARTIC- IPATING MUNICIPAL CORPORATION SHALL BE AUTHORIZED AND DIRECTED TO ISSUE A REFUND IN THE AMOUNT OF THE EXCESS TAXES PAID WITH REGARD TO SUCH PARTICIPATING MUNICIPAL CORPORATION. (F) THE RIGHTS CONTAINED IN THIS SECTION SHALL NOT OTHERWISE DIMINISH ANY OTHER LEGALLY AVAILABLE RIGHT OF ANY PROPERTY OWNER OR PARTY WHO MAY OTHERWISE LAWFULLY CHALLENGE THE VALUATION OR ASSESSMENT OF ANY REAL PROPERTY OR IMPROVEMENTS THEREON. ALL REMAINING RIGHTS HEREBY REMAIN AND SHALL BE AVAILABLE TO THE PARTY TO WHOM SUCH RIGHTS WOULD OTHERWISE BE AVAILABLE NOTWITHSTANDING THIS SECTION. 4. SCHOOL DISTRICTS HELD HARMLESS. EACH SCHOOL DISTRICT THAT IS WHOLLY OR PARTIALLY CONTAINED WITHIN AN ELIGIBLE COUNTY SHALL BE HELD HARMLESS BY THE STATE FOR ANY REDUCTION IN STATE AID THAT WOULD HAVE BEEN PAID AS TAX SAVINGS PURSUANT TO SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER INCURRED DUE TO THE PROVISIONS OF THIS SECTION. 5. BONDS AUTHORIZED. SERIAL BONDS AND, IN ADVANCE OF SUCH, BOND ANTIC- IPATION NOTES ARE HEREBY AUTHORIZED PURSUANT TO SUBDIVISION THIRTY- THREE-E OF PARAGRAPH A OF SECTION 11.00 OF THE LOCAL FINANCE LAW, PROVIDED, HOWEVER, THAT ANY FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING RECEIVED BY SUCH PARTICIPATING MUNICIPALITY, IN RELATION TO LOSS OF PROPERTY TAX FUNDING, SHALL FIRST BE USED TO DEFEASE, UPON MATURITY, THE INTEREST AND PRINCIPAL OF ANY SUCH BOND OR NOTE SO OUTSTANDING. § 2. Paragraph a of section 11.00 of the local finance law is amended by adding a new subdivision 33-e to read as follows: 33-E. REAL PROPERTY TAX REFUNDS AND CREDITS. PAYMENTS OF EXEMPTIONS, REFUNDS, OR CREDITS FOR REAL PROPERTY TAX, SEWER AND WATER RENTS, RATES AND CHARGES AND ALL OTHER REAL PROPERTY TAXES TO BE MADE BY A MUNICI- PALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION AS A RESULT OF PROVIDING ASSESSMENT RELIEF IN A STATE DISASTER EMERGENCY PURSUANT TO SECTION FOUR HUNDRED NINETY-SEVEN OF THE REAL PROPERTY TAX LAW, TEN YEARS. § 3. This act shall take effect immediately. SUBPART B Section 1. Paragraph (b) of subdivision 1 of section 523 of the real property tax law, as amended by chapter 223 of the laws of 1987, is amended to read as follows: (b) The board of assessment review shall consist of not less than three nor more than five members appointed by the legislative body of the local government or village OR AS PROVIDED BY SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF APPLICABLE. Members shall have a knowledge of property values in the local govern- S. 1509 19 A. 2009 ment or village. Neither the assessor nor any member of his or her staff may be appointed to the board of assessment review. A majority of such board shall consist of members who are not officers or employees of the local government or village. § 2. Subdivision 1 of section 1537 of the real property tax law, as added by chapter 512 of the laws of 1993, is amended and a new subdivi- sion 5 is added to read as follows: 1. (a) An assessing unit and a county shall have the power to enter into, amend, cancel and terminate an agreement for appraisal services, exemption services, [or] assessment services, OR ASSESSMENT REVIEW SERVICES, in the manner provided by this section. Such an agreement shall be considered an agreement for the provision of a "joint service" for purposes of article five-G of the general municipal law, notwith- standing the fact that the county would not have the power to perform such services in the absence of such an agreement. (b) Any such agreement shall be approved by both the assessing unit and the county, by a majority vote of the voting strength of each governing body. (c) In the case of an assessing unit, no such agreement shall be submitted to the governing body for approval unless at least forty-five days prior to such submission, the governing body shall have adopted a resolution, subject to a permissive referendum, authorizing the assess- ing unit to negotiate such an agreement with the county; provided, however, that such prior authorization shall not be required for an agreement to amend, cancel or terminate an existing agreement pursuant to this section. 5. AN AGREEMENT BETWEEN AN ASSESSING UNIT AND A COUNTY FOR ASSESSMENT REVIEW SERVICES SHALL PROVIDE FOR THE MEMBERS OF THE BOARD OF ASSESSMENT REVIEW OF THE ASSESSING UNIT TO BE APPOINTED BY THE LEGISLATIVE BODY OF THE COUNTY UPON THE RECOMMENDATION OF THE COUNTY DIRECTOR OF THE REAL PROPERTY TAX SERVICES. EACH MEMBER SO APPOINTED SHALL BE A RESIDENT OF THE COUNTY BUT NEED NOT BE A RESIDENT OF THE ASSESSING UNIT. THE BOARD OF ASSESSMENT REVIEW AS SO CONSTITUTED SHALL HAVE THE AUTHORITY TO RECEIVE, REVIEW AND RESOLVE PETITIONS FOR ASSESSMENT REVIEW FILED IN SUCH ASSESSING UNIT, AND FOR THE CORRECTIONS OF ERRORS THEREIN, TO THE FULL EXTENT SET FORTH IN ARTICLE FIVE OF THIS CHAPTER. § 3. Subdivision 1 of section 1408 of the real property tax law, as amended by chapter 473 of the laws of 1984, is amended to read as follows: 1. At the time and place and during the hours specified in the notice given pursuant to section fourteen hundred six of this chapter, the board of review shall meet to hear complaints relating to assessments brought before it. The board of trustees and assessors, or a committee of such board constituting at least a majority thereof and the assessors or a board of assessment review constituted pursuant to section five hundred twenty-three of this chapter, OR AS PROVIDED BY SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF APPLICABLE, shall constitute the board of review. § 4. This act shall take effect immediately. SUBPART C Section 1. Subdivision 4 of section 318 of the real property tax law, as amended by chapter 527 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: S. 1509 20 A. 2009 4. Notwithstanding the provisions of this subdivision or any other law, the travel and other actual and necessary expenses incurred by an appointed or elected assessor, or by A PERSON APPOINTED ASSESSOR FOR A FORTHCOMING TERM, OR BY an assessor-elect prior to the commencement of his OR HER term, in satisfactorily completing courses of training as required by this title or as approved by the commissioner, including continuing education courses prescribed by the commissioner which are satisfactorily completed by any elected assessor, shall be a state charge upon audit by the comptroller. Travel and other actual and neces- sary expenses incurred by an acting assessor who has been exercising the powers and duties of the assessor for a period of at least six months, in attending training courses no earlier than twelve months prior to the date when courses of training and education are required, shall also be a state charge upon audit by the comptroller. Candidates for certif- ication as eligible for the position of assessor, other than assessors or assessors-elect, shall be charged for the cost of training materials and shall be responsible for all other costs incurred by them in connection with such training. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBDIVISION, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS- SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE. § 2. Paragraph f of subdivision 3 of section 1530 of the real property tax law, as amended by chapter 361 of the laws of 1986 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: f. Expenses in attending training courses. Notwithstanding the provisions of any other law, the travel and other actual and necessary expenses incurred by a director or a person appointed director for a forthcoming term in attending courses of training as required by this subdivision or as approved by the commissioner shall be a state charge upon audit by the comptroller. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS PARAGRAPH, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS- SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE. § 3. This act shall take effect immediately. SUBPART D Section 1. Section 104 of the real property tax law, as added by section 1 of part U of chapter 61 of the laws of 2011, is amended to read as follows: § 104. Electronic real property tax administration. 1. Notwithstanding any provision of law to the contrary, the commissioner is hereby author- ized to establish standards for electronic real property tax adminis- tration (E-RPT). Such standards shall set forth the terms and conditions under which the various tasks associated with real property tax adminis- tration may be executed electronically, dispensing with the need for paper documents. Such tasks shall include ANY OR ALL OF THE FOLLOWING: (a) The filing of exemption applications; (b) The filing of petitions for administrative review of assessments; S. 1509 21 A. 2009 (c) The filing of petitions for judicial review of assessments; (d) The filing of applications for administrative corrections of errors; (e) The issuance of statements of taxes; (f) The payment of taxes, subject to the provisions of sections five and five-b of the general municipal law; (g) The provision of receipts for the payment of taxes; (h) The issuance of taxpayer notices required by law, including sections five hundred eight, five hundred ten, five hundred ten-a, five hundred eleven, five hundred twenty-five and five hundred fifty-one-a through five hundred fifty-six-b of this chapter; and (i) The furnishing of notices and certificates under this chapter relating to state equalization rates, residential assessment ratios, special franchise assessments, railroad ceilings, taxable state lands, advisory appraisals, and the certification of assessors and county directors or real property tax services, SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION. 2. Such standards shall be developed after consultation with local government officials, the office of court administration IN THE CASE OF STANDARDS RELATING TO PETITIONS FOR JUDICIAL REVIEW OF ASSESSMENTS, and the office of the state comptroller IN THE CASE OF STANDARDS RELATING TO PAYMENTS OR TAXES AND THE ISSUANCE OF RECEIPTS THEREFOR. 3. (a) Taxpayers shall not be required to accept notices, statements of taxes, receipts for the payment of taxes, or other documents elec- tronically unless they have so elected. Taxpayers who have not so elected shall be sent such communications in the manner otherwise provided by law. (b) [Assessors and other municipal officials shall not be required to accept and respond to communications from the commissioner electron- ically. (c)] The governing board of any municipal corporation may, by local law, ordinance or resolution, determine that it is in the public inter- est for such municipal corporation to provide electronic real property tax administration. Upon adoption of such local law, ordinance or resol- ution, such municipal corporation shall comply with standards set forth by the commissioner. [(d)] (C) The standards prescribed by the commissioner pursuant to this section RELATING TO COMMUNICATIONS WITH TAXPAYERS shall provide for the collection of electronic contact information, such as e-mail addresses and/or social network usernames, from taxpayers who have elected to receive electronic communications in accordance with the provisions of this section. Such information shall be exempt from public disclosure in accordance with section eighty-nine of the public officers law. 4. When a document has been transmitted electronically in accordance with the provisions of this section and the standards adopted by the commissioner hereunder, it shall be deemed to satisfy the applicable legal requirements to the same extent as if it had been mailed via the United States postal service. 5. (A) ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY, WHENEVER THE COMMISSIONER IS OBLIGED BY LAW TO MAIL A NOTICE OF THE DETERMINATION OF A TENTATIVE STATE EQUALIZATION RATE, TENTATIVE SPECIAL FRANCHISE ASSESS- MENT, TENTATIVE ASSESSMENT CEILING OR OTHER TENTATIVE DETERMINATION OF THE COMMISSIONER THAT IS SUBJECT TO ADMINISTRATIVE REVIEW, THE COMMIS- SIONER SHALL BE AUTHORIZED TO FURNISH THE REQUIRED NOTICE BY E-MAIL, OR BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, OR BOTH, AT HIS S. 1509 22 A. 2009 OR HER DISCRETION. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER SHALL NOT BE REQUIRED TO FURNISH SUCH NOTICES BY POSTAL MAIL, EXCEPT AS PROVIDED BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION. (B) WHEN PROVIDING NOTICE OF A TENTATIVE DETERMINATION BY E-MAIL PURSUANT TO THIS SUBDIVISION, THE COMMISSIONER SHALL SPECIFY AN E-MAIL ADDRESS TO WHICH COMPLAINTS REGARDING SUCH TENTATIVE DETERMINATION MAY BE SENT. A COMPLAINT THAT IS SENT TO THE COMMISSIONER BY E-MAIL TO THE SPECIFIED E-MAIL ADDRESS BY THE DATE PRESCRIBED BY LAW FOR THE MAILING OF SUCH COMPLAINTS SHALL BE DEEMED VALID TO THE SAME EXTENT AS IF IT HAD BEEN SENT BY POSTAL MAIL. (C) WHEN A FINAL DETERMINATION IS MADE IN SUCH A MATTER, NOTICE OF THE FINAL DETERMINATION AND ANY CERTIFICATE RELATING THERETO SHALL BE FURNISHED BY E-MAIL OR BY A WEBSITE POSTING, AT THE COMMISSIONER'S DISCRETION, AND NEED NOT BE PROVIDED BY POSTAL MAIL, EXCEPT AS PROVIDED BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION. (D) IF AN ASSESSOR HAS ADVISED THE COMMISSIONER IN WRITING THAT HE OR SHE PREFERS TO RECEIVE THE NOTICES DESCRIBED IN THIS SUBDIVISION BY POSTAL MAIL, THE COMMISSIONER SHALL THEREAFTER SEND SUCH NOTICES TO THAT ASSESSOR BY POSTAL MAIL, AND NEED NOT SEND SUCH NOTICES TO THAT ASSESSOR BY E-MAIL. THE COMMISSIONER SHALL PRESCRIBE A FORM THAT ASSESSORS MAY USE TO ADVISE THE COMMISSIONER OF THEIR PREFERENCE FOR POSTAL MAIL. (E) IF THE COMMISSIONER LEARNS THAT AN E-MAIL ADDRESS TO WHICH A NOTICE HAS BEEN SENT PURSUANT TO THIS SUBDIVISION IS NOT VALID, AND THE COMMISSIONER CANNOT FIND A VALID E-MAIL ADDRESS FOR THAT PARTY, THE COMMISSIONER SHALL RESEND THE NOTICE TO THE PARTY BY POSTAL MAIL. IF THE COMMISSIONER DOES NOT HAVE A VALID E-MAIL ADDRESS FOR THE PARTY AT THE TIME THE NOTICE IS INITIALLY REQUIRED TO BE SENT, THE COMMISSIONER SHALL SEND THE NOTICE TO THAT PARTY BY POSTAL MAIL. (F) ON OR BEFORE NOVEMBER THIRTIETH, TWO THOUSAND NINETEEN, THE COMMISSIONER SHALL SEND A NOTICE BY POSTAL MAIL TO ASSESSORS, TO CHIEF EXECUTIVE OFFICERS OF ASSESSING UNITS, AND TO OWNERS OF SPECIAL FRAN- CHISE PROPERTY AND RAILROAD PROPERTY, INFORMING THEM OF THE PROVISIONS OF THIS SECTION. THE NOTICE TO BE SENT TO ASSESSORS SHALL INCLUDE A COPY OF THE FORM PRESCRIBED PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVI- SION. (G) AS USED IN THIS SUBDIVISION, THE TERM "POSTAL MAIL" SHALL MEAN MAIL THAT IS PHYSICALLY DELIVERED TO THE ADDRESSEE BY THE UNITED STATES POSTAL SERVICE. § 2. This act shall take effect immediately. SUBPART E Section 1. Subdivision 4 of section 302 of the real property tax law, as amended by chapter 348 of the laws of 2007, is amended to read as follows: 4. The taxable status of a special franchise shall be determined on the basis of its value and its ownership as of the first day of [July] JANUARY of the year preceding the year in which the assessment roll on which such property is to be assessed is completed and filed in the office of the city or town clerk, except that taxable status of such properties shall be determined on the basis of ownership as of the first day of [July] JANUARY of the second year preceding the date required by law for the filing of the final assessment roll for purposes of all village assessment rolls. § 2. Subdivision 2 of section 606 of the real property tax law, as amended by chapter 743 of the laws of 2005 and as further amended by S. 1509 23 A. 2009 subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 2. In any assessing unit which has completed a revaluation since nine- teen hundred fifty-three or which does not contain property that was assessed in nineteen hundred fifty-three, the commissioner shall deter- mine the full value of such special franchise as of the [valuation date of the assessing unit] TAXABLE STATUS DATE SPECIFIED BY SUBDIVISION FOUR OF SECTION THREE HUNDRED TWO OF THIS CHAPTER. Such full value shall be determined by the commissioner for purposes of sections six hundred eight, six hundred fourteen and six hundred sixteen of this article. These full values shall be entered on the assessment roll at the level of assessment, which shall be the uniform percentage of value, as required by section five hundred two of this chapter, appearing on the tentative assessment roll upon which the assessment is entered. Whenever a final state equalization rate, or, in the case of a special assessing unit, a class equalization rate, is established that is different from a level of assessment applied pursuant to this paragraph, any public offi- cial having custody of that assessment roll is hereby authorized and directed to recompute these assessments to reflect that equalization rate, provided such final rate is established by the commissioner at least ten days prior to the date for levy of taxes against those assess- ments. § 3. This act shall take effect January 1, 2020. SUBPART F Section 1. The real property tax law is amended by adding a new section 575-a to read as follows: § 575-A. ELECTRIC GENERATING FACILITY ANNUAL REPORTS. 1. EVERY CORPO- RATION, COMPANY, ASSOCIATION, JOINT STOCK ASSOCIATION, PARTNERSHIP AND PERSON, THEIR LESSEES, TRUSTEES OR RECEIVERS APPOINTED BY ANY COURT WHATSOEVER, OWNING, OPERATING OR MANAGING ANY ELECTRIC GENERATING FACIL- ITY IN THE STATE SHALL ANNUALLY FILE WITH THE COMMISSIONER, BY APRIL THIRTIETH, A REPORT SHOWING THE INVENTORY, REVENUE, AND EXPENSES ASSOCI- ATED THEREWITH FOR THE MOST RECENT FISCAL YEAR. SUCH REPORT SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER. 2. WHEN USED IN THIS SECTION, "ELECTRIC GENERATING FACILITY" SHALL MEAN ANY FACILITY THAT GENERATES ELECTRICITY FOR SALE, DIRECTLY OR INDI- RECTLY, TO THE PUBLIC, INCLUDING THE LAND UPON WHICH THE FACILITY IS LOCATED, ANY EQUIPMENT USED IN SUCH GENERATION, AND EQUIPMENT LEADING FROM THE FACILITY TO THE INTERCONNECTION WITH THE ELECTRIC TRANSMISSION SYSTEM, BUT SHALL NOT INCLUDE: (A) ANY EQUIPMENT IN THE ELECTRIC TRANSMISSION SYSTEM; AND (B) ANY ELECTRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A RESIDEN- TIAL CUSTOMER OF AN ELECTRIC GENERATING FACILITY, INCLUDING THE LAND UPON WHICH THE EQUIPMENT IS LOCATED, WHEN LOCATED AND USED AT HIS OR HER RESIDENCE. 3. EVERY ELECTRIC GENERATING FACILITY OWNER, OPERATOR, OR MANAGER FAILING TO MAKE THE REPORT REQUIRED BY THIS SECTION, OR FAILING TO MAKE ANY REPORT REQUIRED BY THE COMMISSIONER PURSUANT TO THIS SECTION WITHIN THE TIME SPECIFIED BY IT, SHALL FORFEIT TO THE PEOPLE OF THE STATE THE SUM OF TEN THOUSAND DOLLARS FOR EVERY SUCH FAILURE AND THE ADDITIONAL SUM OF ONE THOUSAND DOLLARS FOR EACH DAY THAT SUCH FAILURE CONTINUES. § 2. This act shall take effect January 1, 2020. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of S. 1509 24 A. 2009 competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through F of this Part shall be as specifically set forth in the last section of such Subparts. PART K Section 1. Section 3-d of the general municipal law, as added by section 2 of part E of chapter 59 of the laws of 2018, is REPEALED. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 12, 2018. PART L Section 1. The tax law is amended by adding a new section 44 to read as follows: § 44. EMPLOYER-PROVIDED CHILD CARE CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN AMOUNT EQUAL TO THE PORTION OF THE CREDIT THAT IS ALLOWED TO THE TAXPAYER UNDER SECTION 45F OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE TO (I) QUALIFIED CHILD CARE EXPENDITURES PAID OR INCURRED WITH RESPECT TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN THE STATE, AND TO (II) QUALIFIED CHILD CARE RESOURCE AND REFERRAL EXPENDITURES PAID OR INCURRED WITH RESPECT TO THE TAXPAYER'S EMPLOYEES WORKING IN THE STATE. THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS. IF THE ENTITY OPERATING THE QUALI- FIED CHILD CARE FACILITY IS A PARTNERSHIP OR A NEW YORK S CORPORATION, THEN SUCH CAP SHALL BE APPLIED AT THE ENTITY LEVEL, SO THE AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF SUCH ENTITY IN A TAXABLE YEAR DOES NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS. (B) CREDIT RECAPTURE. IF THERE IS A CESSATION OF OPERATION OR CHANGE IN OWNERSHIP, AS DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE RELATING TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN THE STATE, THE TAXPAYER SHALL ADD BACK THE APPLICABLE RECAPTURE PERCENTAGE OF THE CREDIT ALLOWED UNDER THIS SECTION IN ACCORDANCE WITH THE RECAPTURE PROVISIONS OF SECTION 45F OF THE INTERNAL REVENUE CODE, BUT THE RECAP- TURE AMOUNT SHALL BE LIMITED TO THE CREDIT ALLOWED UNDER THIS SECTION. (C) REPORTING REQUIREMENTS. A TAXPAYER THAT HAS CLAIMED A CREDIT UNDER THIS SECTION SHALL NOTIFY THE COMMISSIONER OF ANY CESSATION OF OPERA- TION, CHANGE IN OWNERSHIP, OR AGREEMENT TO ASSUME RECAPTURE LIABILITY AS SUCH TERMS ARE DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE, IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER. (D) DEFINITIONS. THE TERMS "QUALIFIED CHILD CARE EXPENDITURES", "QUAL- IFIED CHILD CARE FACILITY", "QUALIFIED CHILD CARE RESOURCE AND REFERRAL EXPENDITURE", "CESSATION OF OPERATION", "CHANGE OF OWNERSHIP", AND "APPLICABLE RECAPTURE PERCENTAGE" SHALL HAVE THE SAME MEANINGS AS IN SECTION 45F OF THE INTERNAL REVENUE CODE. (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: S. 1509 25 A. 2009 (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53; (2) ARTICLE 22: SECTION 606(I), SUBSECTIONS (I) AND (JJJ); (3) ARTICLE 33: SECTION 1511, SUBDIVISION (DD). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: 53. EMPLOYER-PROVIDED CHILD CARE 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 MAY 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 WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED 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. (C) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER. § 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) EMPLOYER-PROVIDED CHILD AMOUNT OF CREDIT UNDER SUBDIVISION CARE CREDIT (JJJ) FIFTY-THREE 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) EMPLOYER-PROVIDED CHILD CARE 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 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 WILL BE PAID THEREON. (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER. § 5. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) EMPLOYER-PROVIDED CHILD CARE 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. THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OR SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAXPAYER'S TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN S. 1509 26 A. 2009 OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER § 6. This act shall take effect immediately and apply to years begin- ning on or after January 1, 2020. PART M Section 1. Paragraph 1 of subsection (b) of section 631 of the tax law is amended by adding a new subparagraph (D-1) to read as follows: (D-1) GAMBLING WINNINGS IN EXCESS OF FIVE THOUSAND DOLLARS FROM WAGER- ING TRANSACTIONS WITHIN THE STATE; OR § 2. Paragraph 2 of subsection (b) of section 671 of the tax law is amended by adding a new subparagraph (E) to read as follows: (E) ANY GAMBLING WINNINGS FROM A WAGERING TRANSACTION WITHIN THIS STATE, IF THE PROCEEDS FROM THE WAGER ARE SUBJECT TO WITHHOLDING UNDER SECTION THREE THOUSAND FOUR HUNDRED TWO OF THE INTERNAL REVENUE CODE. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019; provided, however that the amendments to subsection (b) of section 671 of the tax law made by section two of this act shall not affect the expiration of such subsection and shall be deemed to expire therewith. PART N Section 1. Subdivision (c) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: (c) For purposes of this [subdivision] SECTION, the term "eligible farmer" means a taxpayer whose federal gross income from farming AS DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER for the taxable year is at least two-thirds of excess federal gross income. Excess federal gross income means the amount of federal gross income from all sources for the taxable year in excess of thirty thousand dollars. For [the] purposes of this [subdivision] SECTION, payments from the state's farmland protection program, administered by the department of agriculture and markets, shall be included as federal gross income from farming for otherwise eligible farmers. § 2. Section 42 of the tax law is amended by adding a new subdivision (d-1) to read as follows: (D-1) SPECIAL RULES. IF MORE THAN FIFTY PERCENT OF SUCH ELIGIBLE FARM- ER'S FEDERAL GROSS INCOME FROM FARMING IS FROM THE SALE OF WINE FROM A LICENSED FARM WINERY AS PROVIDED FOR IN ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW, OR FROM THE SALE OF CIDER FROM A LICENSED FARM CIDERY AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVER- AGE CONTROL LAW, THEN AN ELIGIBLE FARM EMPLOYEE OF SUCH ELIGIBLE FARMER SHALL BE INCLUDED FOR PURPOSES OF CALCULATING THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION ONLY IF SUCH ELIGIBLE FARM EMPLOYEE IS EMPLOYED BY SUCH ELIGIBLE FARMER ON QUALIFIED AGRICULTURAL PROPERTY AS DEFINED IN PARAGRAPH FOUR OF SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. S. 1509 27 A. 2009 § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019. PART O Section 1. Section 12 of part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related infor- mation and relating to the voluntary compliance initiative, as amended by section 1 of part M of chapter 60 of the laws of 2016, is amended to read as follows: § 12. This act shall take effect immediately; provided, however, that (i) section one of this act shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service at any time with respect to "listed transactions" as described in such paragraph 1, and shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service with respect to "reportable transactions" as described in such paragraph 1, other than "listed transactions", in which a taxpayer participated during any taxable year for which the statute of limitations for assessment has not expired as of the date this act shall take effect, and shall apply to returns or statements described in such paragraph 1 required to be filed by taxpayers (or persons as described in such paragraph) with the commissioner of taxation and finance on or after the sixtieth day after this act shall have become a law; and (ii) sections two through four and seven through nine of this act shall apply to any tax liability for which the statute of limitations on assessment has not expired as of the date this act shall take effect[; and (iii) provided, further, that the provisions of this act, except section five of this act, shall expire and be deemed repealed July 1, 2019; provided, that, such expiration and repeal shall not affect any requirement imposed pursuant to this act]. § 2. Subsection (aa) of section 685 of the tax law is REPEALED and a new subsection (aa) is added to read as follows: (AA) TAX PREPARER PENALTY.-- (1) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN OR CREDIT CLAIM FORM THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND, AND THE PREPARER KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT SAID POSITION WAS NOT PROPER, AND SUCH POSITION WAS NOT ADEQUATELY DISCLOSED ON THE RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPAR- ER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS. (2) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN OR CREDIT CLAIM FORM THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND AND THE UNDERSTATEMENT OF THE TAX LIABILITY OR THE INCREASED CLAIM FOR REFUND IS DUE TO THE PREPARER'S RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH PREPARER SHALL PAY A PENALTY OF BETWEEN FIVE HUNDRED AND FIVE THOUSAND DOLLARS. THE AMOUNT OF THE PENALTY PAYABLE BY ANY PERSON BY REASON OF THIS PARAGRAPH SHALL BE REDUCED BY THE AMOUNT OF THE PENALTY PAID BY SUCH PERSON BY REASON OF PARAGRAPH ONE OF THIS SUBSECTION. (3) FOR PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT OF TAX LIABILITY" MEANS ANY UNDERSTATEMENT OF THE NET AMOUNT PAYABLE WITH S. 1509 28 A. 2009 RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR ANY OVERSTATEMENT OF THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX. (4) FOR PURPOSES OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARED" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE. (5) THIS SUBSECTION SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION (R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH UNDERSTATEMENT. § 3. Subsection (u) of section 685 of the tax law is amended by adding three new paragraphs (1), (2), and (6) to read as follows: (1) FAILURE TO SIGN RETURN OR CLAIM FOR REFUND. IF A TAX RETURN PREPARER WHO IS REQUIRED PURSUANT TO PARAGRAPH ONE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE TO SIGN A RETURN OR CLAIM FOR REFUND FAILS TO COMPLY WITH SUCH REQUIREMENT WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, THE TAX RETURN PREPARER SHALL BE SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH FAILURE TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR BY THE TAX RETURN PREPARER MUST NOT EXCEED TEN THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO SIGN HIS OR HER NAME ON ANY RETURN THAT REQUIRES THE TAX RETURN PREPARER'S SIGNATURE DURING A SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE FIVE HUNDRED DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF THE PENALTY UNDER PARAGRAPH THREE OF SUBSECTION (G) OF SECTION THIRTY- TWO OF THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND. (2) FAILURE TO FURNISH IDENTIFYING NUMBER. IF A TAX RETURN PREPARER FAILS TO INCLUDE ANY IDENTIFYING NUMBER REQUIRED TO BE INCLUDED ON ANY RETURN OR CLAIM FOR REFUND PURSUANT TO PARAGRAPH TWO OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE, THE TAX RETURN PREPARER SHALL BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS FOR EACH SUCH FAILURE, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR MUST NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS; PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO INCLUDE THE IDENTIFYING NUMBER ON ONE OR MORE RETURNS DURING A SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE TWO HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF THE PENALTY UNDER PARAGRAPH FOUR OF SUBSECTION (G) OF SECTION THIRTY-TWO OF THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND. (6) FOR PURPOSES OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARER" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE. § 4. This act shall take effect immediately; provided, however, that the amendments to subsection (u) of section 685 of the tax law made by section three of this act shall apply to tax documents filed or required to be filed for taxable years beginning on or after January 1, 2019. PART P S. 1509 29 A. 2009 Section 1. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, as added by section 1 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over $43,000 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over $161,550 Over $323,200 BUT NOT OVER $19,674 plus 6.85% of excess $2,155,350 $323,200 over OVER $2,155,350 $145,177 PLUS 8.82% OF EXCESS OVER $2,155,350 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over $43,000 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over $161,550 Over $323,200 BUT NOT OVER $19,403 plus 6.85% of excess $2,155,350 over $323,200 OVER $2,155,350 $144,905 PLUS 8.82% OF EXCESS OVER $2,155,350 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over $27,900 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over $161,550 Over $323,200 BUT NOT OVER $2,155,350 $19,124 plus 6.85% of excess over $323,200 OVER $2,155,350 $144,626 PLUS 8.82% OF EXCESS OVER $2,155,350 S. 1509 30 A. 2009 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 BUT NOT OVER $18,834 plus 6.85% of $2,155,350 excess over $323,200 OVER $2,155,350 $144,336 PLUS 8.82% OF EXCESS OVER $2,155,350 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over $161,550 Over $323,200 BUT NOT OVER $18,544 plus 6.85% of OVER $2,155,350 excess over $323,200 OVER $2,155,350 $144,047 PLUS 8.82% OF EXCESS OVER $2,155,350 § 2. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, as added by section 2 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over $32,200 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over $107,650 Over $269,300 BUT NOT OVER $16,524 plus 6.85% of $1,616,450 excess over $269,300 OVER $1,616,450 $108,804 PLUS 8.82% OF EXCESS OVER $1,616,450 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: S. 1509 31 A. 2009 If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over $32,200 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over $107,650 Over $269,300 BUT NOT OVER $16,304 plus 6.85% of $1,616,450 excess over $269,300 OVER $1,616,450 $108,584 PLUS 8.82% OF EXCESS OVER $1,616,450 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over $20,900 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over $107,650 Over $269,300 BUT NOT OVER $16,079 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 $108,359 PLUS 8.82% OF EXCESS OVER $1,616,450 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over $107,650 Over $269,300 BUT NOT OVER $15,845 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 $108,125 PLUS 8.82% OF EXCESS OVER $1,616,450 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over S. 1509 32 A. 2009 $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 BUT NOT OVER $15,612 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 $107,892 PLUS 8.82% OF EXCESS OVER $1,616,450 § 3. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, as added by section 3 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over $21,400 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over $80,650 Over $215,400 BUT NOT OVER $13,288 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $72,345 PLUS 8.82% OF EXCESS OVER $1,077,550 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over $21,400 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over $80,650 Over $215,400 BUT NOT OVER $13,109 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $72,166 PLUS 8.82% OF EXCESS OVER $1,077,550 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over S. 1509 33 A. 2009 $11,700 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over $13,900 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over $80,650 Over $215,400 BUT NOT OVER $12,926 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $71,984 PLUS 8.82% OF EXCESS OVER $1,077,550 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 BUT NOT OVER $12,738 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $71,796 PLUS 8.82% OF EXCESS OVER $1,077,550 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 BUT NOT OVER $12,550 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $71,608 PLUS 8.82% OF EXCESS OVER $1,077,550 § 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 601 of the tax law, as amended by section 4 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (D) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over two million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after S. 1509 34 A. 2009 January first, two thousand twelve and before January first, two thou- sand [twenty] TWENTY-FIVE. § 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 601 of the tax law, as amended by section 5 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (b) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (b) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million five hundred thousand dollars and the denominator is fifty thou- sand dollars. This subparagraph shall apply only to taxable years begin- ning on or after January first, two thousand twelve and before January first, two thousand [twenty] TWENTY-FIVE. § 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 601 of the tax law, as amended by section 6 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (c) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (c) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand [twenty] TWENTY-FIVE. § 7. This act shall take effect immediately. PART Q Section 1. Subsection (g) of section 615 of the tax law, as amended by section 1 of part S of chapter 59 of the laws of 2017, is amended to read as follows: (g) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, THE NEW YORK ITEM- IZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS MODI- FIED BY PARAGRAPH NINE OF SUBSECTION (C) OF THIS SECTION AND AS LIMITED BY THIS SUBSECTION. (1) With respect to an individual whose New York adjusted gross income is over one million dollars and no more than ten million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxa- ble years beginning after two thousand nine and before two thousand [twenty] TWENTY-FIVE. With respect to an individual whose New York adjusted gross income is over one million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable S. 1509 35 A. 2009 contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning in two thousand nine or after two thousand [nineteen] TWENTY-FOUR. (2) With respect to an individual whose New York adjusted gross income is over ten million dollars, the New York itemized deduction shall be an amount equal to twenty-five percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning after two thousand nine and ending before two thousand [twenty] TWENTY-FIVE. § 2. Subdivision (g) of section 11-1715 of the administrative code of the city of New York, as amended by section 2 of part S of chapter 59 of the laws of 2017, is amended to read as follows: (g) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, THE CITY ITEMIZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS LIMITED BY THIS SUBDIVISION. (1) With respect to an individual whose New York adjusted gross income is over one million dollars but no more than ten million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxa- ble years beginning after two thousand nine and before two thousand [twenty] TWENTY-FIVE. With respect to an individual whose New York adjusted gross income is over one million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning in two thousand nine or after two thousand [nineteen] TWENTY-FOUR. (2) With respect to an individual whose New York adjusted gross income is over ten million dollars, the New York itemized deduction shall be an amount equal to twenty-five percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning after two thousand nine and ending before two thousand [twenty] TWENTY-FIVE. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART R Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as amended by chapter 315 of the laws of 2017, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state purchased before January first, two thousand [twenty] TWENTY-THREE. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seven- teen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as amended by chapter 315 of the laws of 2017, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall S. 1509 36 A. 2009 be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thou- sand seven and on or after January first, two thousand eight and before January first, two thousand [twenty] TWENTY-THREE. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seventeen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 3. This act shall take effect immediately. PART S Section 1. Subdivision (e) of section 23 of the part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing standards for electronic tax administration is REPEALED. § 2. This act shall take effect immediately. PART T Section 1. Subdivision 3 of section 77 of the cooperative corporations law, as amended by chapter 429 of the laws of 1992, is amended to read as follows: 3. Such annual fee shall be paid for each calendar year on the fifteenth day of March next succeeding the close of such calendar year BUT SHALL NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY; PROVIDED, HOWEVER, THAT COOPERATIVE CORPORATIONS DESCRIBED IN SUBDIVI- SION ONE OF THIS SECTION SHALL CONTINUE TO NOT BE SUBJECT TO THE FRAN- CHISE, LICENSE, AND CORPORATION TAXES REFERENCED IN SUCH SUBDIVISION. § 2. Section 66 of the rural electric cooperative law, as amended by chapter 888 of the laws of 1983, is amended to read as follows: § 66. License fee in lieu of all franchise, excise, income, corpo- ration and sales and compensating use taxes. Each cooperative and foreign corporation doing business in this state pursuant to this chap- ter shall pay annually, on or before the first day of July, to the state tax commission, a fee of ten dollars, but shall be exempt from all other franchise, excise, income, corporation and sales and compensating use taxes whatsoever. The exemption from the sales and compensating use taxes provided by this section shall not apply to the taxes imposed pursuant to section eleven hundred seven or eleven hundred eight of the tax law. Nothing contained in this section shall be deemed to exempt such corporations from collecting and paying over sales and compensating use taxes on retail sales of tangible personal property and services made by such corporations to purchasers required to pay such taxes imposed pursuant to article twenty-eight or authorized pursuant to the authority of article twenty-nine of the tax law. SUCH ANNUAL FEE SHALL NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY. § 3. This act shall take effect immediately. PART U Section 1. Paragraph (e) of subdivision 26 of section 210-B of the tax law, as amended by section 2 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: S. 1509 37 A. 2009 (e) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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. § 2. Paragraph 5 of subsection (oo) of section 606 of the tax law, as amended by section 1 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (5) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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 subsection for an additional two calen- dar years. § 3. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as amended by section 3 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (5) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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. This act shall take effect immediately and apply to taxable years beginning on and after January 1, 2020. PART V Section 1. Subdivision (jj) of section 1115 of the tax law, as added by section 1 of part UU of chapter 59 of the laws of 2015, is amended to read as follows: S. 1509 38 A. 2009 (jj) Tangible personal property or services otherwise taxable under this article sold to a related person shall not be subject to the taxes imposed by section eleven hundred five of this article or the compensat- ing use tax imposed under section eleven hundred ten of this article where the purchaser can show that the following conditions have been met to the extent they are applicable: (1)(i) the vendor and the purchaser are referenced as either a "covered company" as described in section 243.2(f) or a "material entity" as described in section 243.2(l) of the Code of Federal Regulations in a resolution plan that has been submitted to an agency of the United States for the purpose of satisfying subpara- graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- Frank Wall Street Reform and Consumer Protection Act (the "Act") or any successor law, or (ii) the vendor and the purchaser are separate legal entities pursuant to a divestiture directed pursuant to subparagraph 5 of paragraph (d) of section one hundred sixty-five of such act or any successor law; (2) the sale would not have occurred between such related entities were it not for such resolution plan or divestiture; and (3) in acquiring such property or services, the vendor did not claim an exemption from the tax imposed by this state or another state based on the vendor's intent to resell such services or property. A person is related to another person for purposes of this subdivision if the person bears a relationship to such person described in section two hundred sixty-seven of the internal revenue code. The exemption provided by this subdivision shall not apply to sales made, services rendered, or uses occurring after June thirtieth, two thousand [nineteen] TWENTY-ONE, except with respect to sales made, services rendered, or uses occurring pursuant to binding contracts entered into on or before such date; but in no case shall such exemption apply after June thirtieth, two thousand twenty-four. § 2. This act shall take effect immediately. PART W Section 1. The mental hygiene law is amended by adding a new section 32.38 to read as follows: § 32.38 POWER TO ADMINISTER THE RECOVERY TAX CREDIT PROGRAM. (A) AUTHORIZATION. THE COMMISSIONER IS AUTHORIZED TO ESTABLISH AND ADMINISTER THE RECOVERY TAX CREDIT PROGRAM TO PROVIDE TAX INCENTIVES TO CERTIFIED EMPLOYERS FOR EMPLOYING ELIGIBLE INDIVIDUALS IN RECOVERY FROM A SUBSTANCE USE DISORDER IN PART-TIME AND FULL-TIME POSITIONS IN THE STATE. THE COMMISSIONER IS AUTHORIZED TO ALLOCATE UP TO TWO MILLION DOLLARS OF TAX CREDITS ANNUALLY FOR THE RECOVERY TAX CREDIT PROGRAM BEGINNING IN THE YEAR TWO THOUSAND TWENTY. (B) DEFINITIONS. 1. THE TERM "CERTIFIED EMPLOYER" MEANS AN EMPLOYER THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER AFTER THE COMMISSIONER HAS DETERMINED THAT THE EMPLOYER: (I) PROVIDES A RECOVERY SUPPORTIVE ENVIRONMENT EVIDENCED BY A FORMAL WORKING RELATIONSHIP WITH A LOCAL RECOVERY COMMUNITY ORGANIZATION TO PROVIDE SUPPORT FOR EMPLOYERS INCLUDING ANY NECESSARY ASSISTANCE IN THE HIRING PROCESS OF ELIGIBLE INDIVIDUALS IN RECOVERY FROM A SUBSTANCE USE DISORDER AND TRAINING FOR EMPLOYERS OR SUPERVISORS; AND (II) FULFILLS THE ELIGIBILITY CRITERIA SET FORTH IN THIS SECTION AND BY THE COMMISSIONER TO PARTICIPATE IN THE RECOVERY TAX CREDIT PROGRAM ESTABLISHED IN THIS SECTION. 2. THE TERM "ELIGIBLE INDIVIDUAL" MEANS AN INDIVIDUAL WITH A SUBSTANCE USE DISORDER AS THAT TERM IS DEFINED IN SECTION 1.03 OF THIS CHAPTER WHO S. 1509 39 A. 2009 IS IN A STATE OF WELLNESS WHERE THERE IS AN ABATEMENT OF SIGNS AND SYMP- TOMS THAT CHARACTERIZE ACTIVE ADDICTION AND HAS DEMONSTRATED TO THE QUALIFIED EMPLOYER'S SATISFACTION THAT HE OR SHE HAS COMPLETED A COURSE OF TREATMENT FOR SUCH SUBSTANCE USE DISORDER. (C) APPLICATION AND APPROVAL PROCESS. 1. TO PARTICIPATE IN THE PROGRAM ESTABLISHED BY THIS SECTION, AN EMPLOYER MUST, IN A FORM PRESCRIBED BY THE COMMISSIONER, APPLY ANNUALLY TO THE OFFICE BY JANUARY FIFTEENTH TO CLAIM CREDIT BASED ON ELIGIBLE INDIVIDUALS EMPLOYED DURING THE PRECEDING CALENDAR YEAR. AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (I) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES. HOWEVER, ANY INFORMATION SHARED BECAUSE OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW. (II) ALLOW THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AND ITS AGENTS ACCESS TO ALL BOOKS AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE WITH PROGRAM ELIGIBILITY REQUIREMENTS. (III) DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED PROGRAM ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY, INCLUDING THE NUMBER OF HOURS WORKED BY ANY ELIGIBLE INDIVIDUAL, FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. 2. (I) AFTER REVIEWING THE APPLICATION AND FINDING IT SUFFICIENT, THE COMMISSIONER SHALL ISSUE A CERTIFICATE OF TAX CREDIT BY MARCH THIRTY- FIRST. SUCH CERTIFICATE SHALL INCLUDE, BUT NOT BE LIMITED TO, THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE CERTIFIED EMPLOYER, THE AMOUNT OF CREDIT THAT THE CERTIFIED EMPLOYER MAY CLAIM, AND ANY OTHER INFORMA- TION THE COMMISSIONER OF TAXATION AND FINANCE DETERMINES IS NECESSARY. (II) IN DETERMINING THE AMOUNT OF CREDIT THAT ANY EMPLOYER MAY CLAIM, THE COMMISSIONER SHALL REVIEW ALL CLAIMS SUBMITTED FOR CREDIT BY EMPLOY- ERS AND, TO THE EXTENT THAT THE TOTAL AMOUNT CLAIMED BY EMPLOYERS EXCEEDS THE AMOUNT ALLOCATED FOR THE PROGRAM IN THAT CALENDAR YEAR, SHALL ISSUE CREDITS ON A PRO-RATA BASIS CORRESPONDING TO EACH CLAIMANT'S SHARE OF THE TOTAL CLAIMED AMOUNT. (D) ELIGIBILITY. A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CRED- IT EQUAL TO THE PRODUCT OF ONE DOLLAR AND THE NUMBER OF HOURS WORKED BY EACH ELIGIBLE INDIVIDUAL DURING SUCH INDIVIDUAL'S PERIOD OF ELIGIBILITY. THE CREDIT SHALL NOT BE ALLOWED UNLESS THE ELIGIBLE INDIVIDUAL HAS WORKED IN STATE FOR A MINIMUM OF FIVE HUNDRED HOURS FOR THE CERTIFIED EMPLOYER, AND THE CREDIT CANNOT EXCEED TWO THOUSAND DOLLARS PER ELIGIBLE INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYER IN THE STATE. THE PERIOD OF ELIGIBILITY FOR EACH SUCH EMPLOYEE STARTS ON THE DAY THE EMPLOYEE IS HIRED AND ENDS ON DECEMBER THIRTY-FIRST OF THE IMMEDIATELY SUCCEEDING CALENDAR YEAR OR THE LAST DAY OF THE EMPLOYEE'S EMPLOYMENT BY THE CERTI- FIED EMPLOYER, WHICHEVER COMES FIRST. IF AN EMPLOYEE HAS WORKED IN EXCESS OF FIVE HUNDRED HOURS BETWEEN THE DATE OF HIRING AND DECEMBER THIRTY-FIRST OF THAT YEAR, AN EMPLOYER CAN ELECT TO COMPUTE AND CLAIM A CREDIT FOR SUCH EMPLOYEE IN THAT YEAR BASED ON THE HOURS WORKED BY DECEMBER THIRTY-FIRST. ALTERNATIVELY, THE EMPLOYER MAY ELECT TO INCLUDE SUCH INDIVIDUAL IN THE COMPUTATION OF THE CREDIT IN THE YEAR IMMEDIATELY SUCCEEDING THE YEAR IN WHICH THE EMPLOYEE WAS HIRED. IN SUCH CASE, THE CREDIT SHALL BE COMPUTED ON THE BASIS OF ALL HOURS WORKED BY SUCH ELIGI- BLE INDIVIDUAL FROM THE DATE OF HIRE TO THE EARLIER OF THE LAST DAY OF EMPLOYMENT OR DECEMBER THIRTY-FIRST OF THE SUCCEEDING YEAR. HOWEVER, IN NO EVENT MAY AN EMPLOYEE GENERATE CREDIT FOR HOURS WORKED IN EXCESS OF TWO THOUSAND HOURS. AN EMPLOYER MAY CLAIM CREDIT ONLY ONCE WITH RESPECT S. 1509 40 A. 2009 TO ANY ELIGIBLE INDIVIDUAL AND MAY NOT AGGREGATE HOURS OF TWO OR MORE EMPLOYEES TO REACH THE MINIMUM NUMBER OF HOURS. (E) DUTIES OF THE COMMISSIONER. THE COMMISSIONER SHALL ANNUALLY PROVIDE TO THE COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE INFORMATION ABOUT THE PROGRAM INCLUDING, BUT NOT LIMITED TO, THE NUMBER OF CERTIFIED EMPLOYERS THEN PARTICIPATING IN THE PROGRAM, UNIQUE IDENTI- FYING INFORMATION FOR EACH CERTIFIED EMPLOYER, THE NUMBER OF ELIGIBLE INDIVIDUALS EMPLOYED BY EACH CERTIFIED EMPLOYER, UNIQUE IDENTIFYING INFORMATION FOR EACH ELIGIBLE INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYERS, THE NUMBER OF HOURS WORKED BY SUCH ELIGIBLE INDIVIDUALS, THE TOTAL DOLLAR AMOUNT OF CLAIMS FOR CREDIT, AND THE DOLLAR AMOUNT OF CRED- IT GRANTED TO EACH CERTIFIED EMPLOYER. (F) CERTIFIED EMPLOYER'S TAXABLE YEAR. IF THE CERTIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE CERTIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CRED- IT ON THE RETURN FOR THE FISCAL YEAR THAT INCLUDES THE LAST DAY OF THE CALENDAR YEAR COVERED BY THE CERTIFICATE OF TAX CREDIT. (G) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THE TAX LAW: 1. ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53. 2. ARTICLE 22: SECTION 606, SUBSECTION (JJJ). 3. ARTICLE 33: SECTION 1511, SUBDIVISION (DD). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: 53. RECOVERY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A CERTIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP OR MEMBER OF A LIMITED LIABILITY COMPANY THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO THAT AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON. (C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. S. 1509 41 A. 2009 § 3. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows: (XLIV) RECOVERY TAX CREDIT UNDER AMOUNT OF CREDIT UNDER SUBSECTION (JJJ) SUBDIVISION FIFTY-THREE 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) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. 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 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABIL- ITY COMPANY OR S CORPORATION. (2) OVERPAYMENT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXA- BLE 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, NO INTEREST WILL BE PAID THEREON. (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 5. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP OR MEMBER OF A LIMITED LIABILITY COMPANY THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY. (2) 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 MINIMUM TAX FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE OR BY SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR 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, THE S. 1509 42 A. 2009 PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 6. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2020 and shall apply to those eligible individuals hired after this act shall take effect. PART X Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 20 to read as follows: (20) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE TERM "CONTRIBUTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE. § 2. Paragraph 1 of subdivision (b) of section 1503 of the tax law is amended by adding a new subparagraph (T) to read as follows: (T) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE TERM "CONTRIB- UTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE. § 3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis- trative code of the city of New York is amended by adding a new subpara- graph 14 to read as follows: (14) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE TERM "CONTRIBUTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART Y 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. S. 1509 43 A. 2009 (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 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: S. 1509 44 A. 2009 (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: [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, 2019 and before January 1, 2020, (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 S. 1509 45 A. 2009 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, 2019; 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 Z Section 1. Paragraph 3 of subdivision (a) and paragraphs 2 and 5 of subdivision (c) of section 43 of the tax law, as added by section 7 of part K of chapter 59 of the laws of 2017, are amended to read as follows: (3) The total amount of credit allowable to a qualified life sciences company, or, if the life sciences company is properly included or required to be included in a combined report, to the combined group, taken in the aggregate, shall not exceed five hundred thousand dollars in any taxable year. If the [life sciences company] TAXPAYER is a part- ner in a partnership THAT IS A LIFE SCIENCES COMPANY or A shareholder of a New York S corporation THAT IS A LIFE SCIENCES COMPANY, then the total amount of credit allowable shall be applied at the entity level, so that the total amount of credit allowable to all the partners or shareholders of each such entity, taken in the aggregate, does not exceed five hundred thousand dollars in any taxable year. (2) "New business" means any business that qualifies as a new business under either paragraph (f) of subdivision one of section two hundred ten-B or paragraph ten of subsection [one] (A) of section six hundred six of this chapter. (5) "Related person" means a related person as defined in subparagraph [(c)] (C) of paragraph three of subsection (b) of section 465 of the internal revenue code. For this purpose, a "related person" shall include an entity that would have qualified as a "related person" if it had not been dissolved, liquidated, merged with another entity or other- wise ceased to exist or operate. § 2. Subdivision 5 of section 209 of the tax law, as amended by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 5. For any taxable year of a real estate investment trust as defined in section eight hundred fifty-six of the internal revenue code in which such trust is subject to federal income taxation under section eight hundred fifty-seven of such code, such trust shall be subject to a tax computed under either paragraph (a) or (d) of subdivision one of section two hundred ten of this chapter, whichever is greater, and shall not be S. 1509 46 A. 2009 subject to any tax under article thirty-three of this chapter except for a captive REIT required to file a combined return under subdivision (f) of section fifteen hundred fifteen of this chapter. In the case of such a real estate investment trust, including a captive REIT as defined in section two of this chapter, the term "entire net income" means "real estate investment trust taxable income" as defined in paragraph two of subdivision (b) of section eight hundred fifty-seven (as modified by section eight hundred fifty-eight) of the internal revenue code [plus the amount taxable under paragraph three of subdivision (b) of section eight hundred fifty-seven of such code], subject to the modifications required by subdivision nine of section two hundred eight of this arti- cle. § 3. Paragraph (a) of subdivision 8 of section 211 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (a) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for any tax commissioner, any officer or employee of the department [of taxation and finance], or any person who, pursuant to this section, is permitted to inspect any report, or to whom any information contained in any 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 report filed pursuant to this article, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report under this article. The officers charged with the custody of such 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 or 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 or the commissioner is a party or a claimant, or on behalf of any party to any action or proceed- ing under the provisions of this article when the reports or 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 reports or of the facts shown thereby as are pertinent to the action or proceeding, and no more. The commissioner may, nevertheless, publish a copy or a summary of any determination or decision rendered after the formal hearing provided for in section one thousand eighty-nine of this chapter. Nothing herein shall be construed to prohibit the delivery to a corporation or its duly authorized repre- sentative of a copy of any report filed by it, nor to prohibit the publication of statistics so classified as to prevent the identification of particular reports and the items thereof; or the publication of delinquent lists showing the names of taxpayers who have failed to pay their taxes at the time and in the manner provided by section two hundred thirteen of this chapter together with any relevant information which in the opinion of the commissioner may assist in the collection of such delinquent taxes; or the inspection by the attorney general or other legal representatives of the state of the report of any corpo- ration which shall bring action to set aside or review the tax based thereon, or against which an action or proceeding under this chapter has been recommended by the commissioner of taxation and finance or the attorney general or has been instituted; or the inspection of the reports of any corporation by the comptroller or duly designated officer or employee of the state department of audit and control, for purposes S. 1509 47 A. 2009 of the audit of a refund of any tax paid by such corporation under this article[; and nothing in this chapter shall be construed to prohibit the publication of the issuer's allocation percentage of any corporation, as such term "issuer's allocation percentage" is defined in subparagraph one of paragraph (b) of subdivision three of section two hundred ten of this article]. § 4. Subdivision (a) of section 213-b of the tax law, as amended by section 10 of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (a) First installments for certain taxpayers.--In privilege periods of twelve months ending at any time during the calendar year nineteen hundred seventy and thereafter, every taxpayer subject to the tax imposed by section two hundred nine of this chapter must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, for taxable years beginning before January first, two thousand sixteen, and must pay on or before the fifteenth day of the third month of such priv- ilege periods, for taxable years beginning on or after January first, two thousand sixteen, an amount equal to (i) twenty-five percent of the second preceding year's tax if the second preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the second preceding year's tax if the second preceding year's tax exceeded one hundred thousand dollars. If the second preceding year's tax under section two hundred nine of this chapter exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section two hundred nine-B of this chapter, the taxpayer must also pay with the tax surcharge report required to be filed for the second preceding privilege period, or with an application for extension of the time for filing the report, for taxable years beginning before January first, two thousand sixteen, and must pay on or before the fifteenth day of the third month of such privilege periods, for taxable years beginning on or after January first, two thousand sixteen, an amount equal to (i) twenty-five percent of the tax surcharge imposed for the second preceding year if the second preceding year's tax was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the second preceding year if the second preceding year's tax exceeded one hundred thousand dollars. Provided, however, that every taxpayer that is [an] A NEW YORK S corpo- ration must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, an amount equal to (i) twenty-five percent of the preceding year's tax if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the preceding year's tax if the preceding year's tax exceeded one hundred thousand dollars. [If the preceding year's tax under section two hundred nine of this article exceeded one thousand dollars and such taxpayer that is an S corporation is subject to the tax surcharge imposed by section two hundred nine-B of this article, the taxpayer must also pay with the tax surcharge report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, an amount equal to (i) twenty-five percent of the tax surcharge imposed for the preceding year if the preceding year's tax was equal equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the preceding year if the preceding year's tax exceeded one hundred thousand dollars.] S. 1509 48 A. 2009 § 5. Subdivision (e) of section 213-b of the tax law, as amended by chapter 166 of the laws of 1991, the subdivision heading as amended by section 10-b of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (e) Interest on certain installments based on the second preceding year's tax.--Notwithstanding the provisions of section one thousand eighty-eight of this chapter or of section sixteen of the state finance law, if an amount paid pursuant to subdivision (a) exceeds the tax or tax surcharge, respectively, shown on the report required to be filed by the taxpayer for the privilege period during which the amount was paid, interest shall be allowed and paid on the amount by which the amount so paid pursuant to such subdivision exceeds such tax or tax surcharge. In the case of amounts so paid pursuant to subdivision (a), such interest shall be allowed and paid at the overpayment rate set by the commission- er of taxation and finance pursuant to section one thousand ninety-six of this chapter, or if no rate is set, at the rate of six per centum per annum from the date of payment of the amount so paid pursuant to such subdivision to the fifteenth day of the [third] FOURTH month following the close of the taxable year, provided, however, that no interest shall be allowed or paid under this subdivision if the amount thereof is less than one dollar or if such interest becomes payable solely because of a carryback of a net operating loss in a subsequent privilege period. § 6. Subdivision (a) of section 1503 of the tax law, as amended by chapter 817 of the laws of 1987, is amended to read as follows: (a) The entire net income of a taxpayer shall be its total net income from all sources which shall be presumably the same as the life insur- ance company taxable income (which shall include, in the case of a stock life insurance company [which] THAT has A BALANCE, AS DETERMINED AS OF THE CLOSE OF SUCH COMPANY'S LAST TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, IN an existing policyholders surplus account, AS SUCH TERM IS DEFINED IN SECTION 815 OF THE INTERNAL REVENUE CODE AS SUCH SECTION WAS IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount of [direct and indirect distributions during the taxable year to shareholders from such account] ONE-EIGHTH OF SUCH BALANCE), taxable income of a partnership or taxable income, but not alternative minimum taxable income, as the case may be, which the taxpayer is required to report to the United States treasury department, for the taxable year or, in the case of a corporation exempt from federal income tax (other than the tax on unrelated business taxa- ble income imposed under section 511 of the internal revenue code) but not exempt from tax under section fifteen hundred one, the taxable income which such taxpayer would have been required to report but for such exemption, except as hereinafter provided. § 7. Subparagraphs (A) and (B) of paragraph 1 of subdivision (d) of section 11-525 of the administrative code of the city of New York are amended to read as follows: (A) The tax shown on the return of the taxpayer for the preceding taxable year OR THE SECOND PRECEDING TAXABLE YEAR, AS APPLICABLE WITH RESPECT TO THE TAXPAYER'S DECLARATION OF ESTIMATED TAX, if a return showing a liability for tax was filed by the taxpayer for [the] SUCH preceding OR SECOND PRECEDING taxable year and such preceding OR SECOND PRECEDING year was a taxable year of twelve months, or (B) An amount equal to the tax computed, at the rates applicable to the taxable year, but otherwise on the basis of the facts shown on the taxpayer's return for, and the law applicable to, the preceding taxable S. 1509 49 A. 2009 year OR THE SECOND PRECEDING TAXABLE YEAR, AS APPLICABLE WITH RESPECT TO THE TAXPAYER'S DECLARATION OF ESTIMATED TAX, or § 8. Paragraphs (a) and (b) of subdivision 4 of section 11-676 of the administrative code of the city of New York are amended to read as follows: (a) The tax shown on the return of the taxpayer for the preceding taxable year OR THE SECOND PRECEDING TAXABLE YEAR, AS APPLICABLE WITH RESPECT TO THE TAXPAYER'S DECLARATION OF ESTIMATED TAX, if a return showing a liability for tax was filed by the taxpayer for [the] SUCH preceding OR SECOND PRECEDING taxable year and such preceding OR SECOND PRECEDING year was a taxable year of twelve months, or (b) An amount equal to the tax computed at the rates applicable to the taxable year, but otherwise on the basis of the facts shown on the return of the taxpayer for, and the law applicable to, the preceding taxable year OR THE SECOND PRECEDING TAXABLE YEAR, AS APPLICABLE WITH RESPECT TO THE TAXPAYER'S DECLARATION OF ESTIMATED TAX, or § 9. Section 2 of chapter 369 of the laws of 2018 amending the tax law relating to unrelated business taxable income of a taxpayer, is amended to read as follows: § 2. This act shall take effect immediately and shall apply to [taxa- ble years beginning] AMOUNTS PAID OR INCURRED on and after January 1, 2018. § 10. This act shall take effect immediately, provided, however, that: (i) section one of this act shall be deemed to have been in full force and effect on and after the effective date of part K of chapter 59 of the laws of 2017; (ii) sections two and six of this act shall be deemed to have been in full force and effect on and after the effective date of part KK of chapter 59 of the laws of 2018; provided, however, that section six of this act shall apply to taxable years beginning on or after January 1, 2018 through taxable years beginning on or before January 1, 2025; (iii) section three of this act shall be deemed to have been in full force and effect on and after the effective date of part A of chapter 59 of the laws of 2014; (iv) sections four, five, seven and eight of this act shall be deemed to have been in full force and effect on and after the effective date of part Q of chapter 60 of the laws of 2016; (v) section nine of this act shall be deemed to have been in full force and effect on and after the effective date of chapter 369 of the laws of 2018. PART AA Section 1. Section 487 of the real property tax law is amended by adding a new subdivision 10 to read as follows: 10. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION, ON OR AFTER APRIL FIRST, TWO THOUSAND NINETEEN, REAL PROPERTY THAT COMPRISES OR INCLUDES A SOLAR OR WIND ENERGY SYSTEM, FARM WASTE ENERGY SYSTEM, MICROHYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM, MICROCOMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM, OR ELECTRIC ENERGY STORAGE SYSTEM AS SUCH TERMS ARE DEFINED IN PARAGRAPHS (B), (F), (H), (J), (L) AND (N) OF SUBDIVISION ONE OF THIS SECTION (HEREINAFTER, INDIVIDUALLY OR COLLECTIVELY, "ENERGY SYSTEM"), SHALL BE EXEMPT FROM ANY TAXATION, SPECIAL AD VALOREM LEVIES, AND SPECIAL ASSESSMENTS TO THE EXTENT PROVIDED IN SECTION FOUR HUNDRED NINETY OF THIS ARTICLE, AND THE OWNER OF SUCH PROPERTY SHALL NOT BE SUBJECT TO ANY REQUIREMENT TO ENTER S. 1509 50 A. 2009 INTO A CONTRACT FOR PAYMENTS IN LIEU OF TAXES IN ACCORDANCE WITH SUBDI- VISION NINE OF THIS SECTION, IF: (A) THE ENERGY SYSTEM IS INSTALLED ON REAL PROPERTY THAT IS OWNED OR CONTROLLED BY THE STATE OF NEW YORK, A DEPARTMENT OR AGENCY THEREOF, OR A STATE AUTHORITY AS THAT TERM IS DEFINED BY SUBDIVISION ONE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW; AND (B) THE STATE OF NEW YORK, A DEPARTMENT OR AGENCY THEREOF, OR A STATE AUTHORITY AS THAT TERM IS DEFINED BY SUBDIVISION ONE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW HAS AGREED TO PURCHASE THE ENERGY PRODUCED BY SUCH ENERGY SYSTEM OR THE ENVIRONMENTAL CREDITS OR ATTRI- BUTES CREATED BY VIRTUE OF THE ENERGY SYSTEM'S OPERATION, IN ACCORDANCE WITH A WRITTEN AGREEMENT WITH THE OWNER OR OPERATOR OF SUCH ENERGY SYSTEM. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER OF THE REAL PROPERTY ON A FORM PRESCRIBED BY THE COMMISSIONER, WHICH APPLICATION SHALL BE FILED WITH THE ASSESSOR OF THE APPROPRIATE COUNTY, CITY, TOWN OR VILLAGE ON OR BEFORE THE TAXABLE STATUS DATE OF SUCH COUNTY, CITY, TOWN OR VILLAGE. § 2. This act shall take effect immediately. PART BB Section 1. Subdivision 1 of section 107 of the racing, pari-mutuel wagering and breeding law, as added by section 1 of part A of chapter 60 of the laws of 2012, is amended as follows: 1. No person shall be appointed to or employed by the commission if, during the period commencing three years prior to appointment or employ- ment, [said] SUCH person held any direct or indirect interest in, or employment by, any corporation, association or person engaged in gaming activity within the state. Prior to appointment or employment, each member, officer or employee of the commission shall swear or affirm that he or she possesses no interest in any corporation or association hold- ing a franchise, license, registration, certificate or permit issued by the commission. Thereafter, no member or officer of the commission shall hold any direct interest in or be employed by any applicant for or by any corporation, association or person holding a license, registration, franchise, certificate or permit issued by the commission for a period of four years commencing on the date his or her membership with the commission terminates. Further, no employee of the commission may acquire any direct or indirect interest in, or accept employment with, any applicant for or any person holding a license, registration, fran- chise, certificate or permit issued by the commission for a period of two years commencing at the termination of employment with the commis- sion. THE COMMISSION MAY, BY RESOLUTION ADOPTED AT A PROPERLY NOTICED PUBLIC MEETING, WAIVE FOR GOOD CAUSE ANY OF ITS PRE-EMPLOYMENT RESTRICTIONS FOR A PROSPECTIVE EMPLOYEE. § 2. This act shall take effect immediately. PART CC 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. S. 1509 51 A. 2009 § 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 DD Section 1. This Part enacts into law legislation relating to the office of gaming inspector general, the thoroughbred breeding and devel- opment fund, the Harry M. Zweig memorial fund and prize payment amounts and revenue distributions of lottery game sales. Each component is whol- ly contained within a Subpart identified as Subparts A through D. 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 corresponding section of the Subpart in which it is found. Section three of this Part sets forth the general effective date of this Part. SUBPART A Section 1. Sections 1368, 1369, 1370, and 1371 of the racing, pari-mu- tuel wagering and breeding law are renumbered sections 130, 131, 132, and 133. § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and breeding law is REPEALED. § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 130. Establishment of the office of gaming inspector general. There is hereby created within the commission the office of gaming inspector general. The head of the office shall be the gaming inspector general who shall be appointed by the governor by and with the advice and consent of the senate. The GAMING inspector general shall serve at the pleasure of the governor. The GAMING inspector general shall report directly to the governor. The person appointed as GAMING inspector general shall, upon his or her appointment, have not less than ten years professional experience in law, investigation, or auditing. The GAMING inspector general shall be compensated within the limits of funds avail- able therefor, provided, however, such salary shall be no less than the salaries of certain state officers holding the positions indicated in paragraph (a) of subdivision one of section one hundred sixty-nine of the executive law. § 4. The section heading, opening paragraph and subdivision 7 of section 131 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and such section as renumbered by section one of this act, are amended to read as follows: [State gaming] GAMING inspector general; functions and duties. The [state] gaming inspector general shall have the following duties and responsibilities: S. 1509 52 A. 2009 7. establish programs for training commission officers and employees [regarding] IN REGARD TO the prevention and elimination of corruption, fraud, criminal activity, conflicts of interest or abuse in the commis- sion. § 5. The opening paragraph of section 132 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and such section as renumbered by section one of this act, is amended to read as follows: The [state] gaming inspector general shall have the power to: § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 133. Responsibilities of the commission and its officers and employ- ees. 1. Every commission officer or employee shall report promptly to the [state] gaming inspector general any information concerning corruption, fraud, criminal activity, conflicts of interest or abuse by another state officer or employee relating to his or her office or employment, or by a person having business dealings with the commission relating to those dealings. The knowing failure of any officer or employee to so report shall be cause for removal from office or employ- ment or other appropriate penalty under this article. Any officer or employee who acts pursuant to this subdivision by reporting to the [state] gaming inspector general or other appropriate law enforcement official improper governmental action as defined in section seventy- five-b of the civil service law shall not be subject to dismissal, discipline or other adverse personnel action. 2. The commission chair shall advise the governor within ninety days of the issuance of a report by the [state] gaming inspector general as to the remedial action that the commission has taken in response to any recommendation for such action contained in such report. § 7. This act shall take effect immediately. SUBPART B Section 1. Subdivision 1 of section 252 of the racing, pari-mutuel wagering and breeding law, as amended by section 11 of part A of chapter 60 of the laws of 2012, is amended to read as follows: 1. A corporation to be known as the New York state thoroughbred breed- ing and development fund corporation is hereby created. Such corporation shall be a body corporate and politic constituting a public benefit corporation. It shall be administered by a board of directors consisting of the chair of the state gaming commission or his or her designee, the commissioner of agriculture and markets, three members of the state gaming commission OR OTHER BONA FIDE RESIDENTS OF THE STATE WHO HAVE A COGENT INTEREST IN THE THOROUGHBRED BREEDING INDUSTRY IN THE STATE as designated by the governor and six members appointed by the governor, all of whom are experienced or have been actively engaged in the breed- ing of thoroughbred horses in New York state, one, the president or the executive director of the statewide thoroughbred breeders association representing the majority of breeders of registered thoroughbreds in New York state, one upon the recommendation of the majority leader of the senate, one upon the recommendation of the speaker of the assembly, one upon the recommendation of the minority leader of the senate, and one upon the recommendation of the minority leader of the assembly. Two of the appointed members shall initially serve for a two year term, two of the appointed members shall initially serve for a three year term and S. 1509 53 A. 2009 two of the appointed members shall initially serve for a four year term. All successors appointed members shall serve for a four year term. All members shall continue in office until their successors have been appointed and qualified. The governor shall designate the chair from among the sitting members who shall serve as such at the pleasure of the governor. § 2. This act shall take effect immediately. SUBPART C Section 1. Subdivision 1 of section 17 of the public officers law is amended by adding a new paragraph (aa) to read as follows: (AA) FOR THE PURPOSES OF THIS SECTION, THE TERM "EMPLOYEE" SHALL INCLUDE THE MEMBERS OF THE HARRY M. ZWEIG MEMORIAL FUND FOR EQUINE RESEARCH COMMITTEE. § 2. Section 703 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 3 to read as follows: 3. NOTWITHSTANDING THE PROVISIONS OF SECTION ELEVEN OF THE STATE FINANCE LAW AND ANY OTHER INCONSISTENT PROVISION OF LAW, THE FUND MAY ACQUIRE PROPERTY BY THE ACCEPTANCE OF CONDITIONAL GIFTS, GRANTS, DEVISES OR BEQUESTS GIVEN IN FURTHERANCE OF THE MISSION OF THE FUND. § 3. This act shall take effect immediately. SUBPART D Section 1. Paragraph 2 of subdivision a of section 1612 of the tax law, as amended by chapter 174 of the laws of 2013, is amended to read as follows: (2) [sixty-five] SIXTY-FOUR AND ONE-FOURTH percent of the total amount for which tickets have been sold for the "Instant Cash" game in which the participant purchases a preprinted ticket on which dollar amounts or symbols are concealed on the face or the back of such ticket, provided however up to five new games may be offered during the fiscal year, [seventy-five] SEVENTY-FOUR AND ONE-FOURTH percent of the total amount for which tickets have been sold for such five games in which the participant purchases a preprinted ticket on which dollar amounts or symbols are concealed on the face or the back of such ticket; or § 2. The opening paragraph of paragraph 1 of subdivision b of section 1612 of the tax law, as amended by chapter 174 of the laws of 2013, is amended to read as follows: Notwithstanding section one hundred twenty-one of the state finance law, on or before the twentieth day of each month, the [division] COMMISSION shall pay into the state treasury, to the credit of the state lottery fund created by section ninety-two-c of the state finance law, NOT LESS THAN FORTY-FIVE PERCENT OF THE TOTAL AMOUNT FOR WHICH TICKETS HAVE BEEN SOLD FOR GAMES DEFINED IN PARAGRAPH FIVE OF SUBDIVISION A OF THIS SECTION DURING THE PRECEEDING MONTH, not less than [forty-five] THIRTY-FIVE percent of the total amount for which tickets have be sold for games defined in paragraph four of subdivision a of this section during the preceding month, not less than [thirty-five] THIRTY percent of the total amount for which tickets have been sold for games defined in paragraph three of subdivision a of this section during the preceding month, not less than twenty AND THREE-FOURTHS percent of the total amount for which tickets have been sold for games defined in paragraph two of subdivision a of this section during the preceding month, provided however that for games with a prize payout of [seventy-five] S. 1509 54 A. 2009 SEVENTY-FOUR AND ONE-FOURTH percent of the total amount for which tick- ets have been sold, the [division] COMMISSION shall pay not less than ten AND THREE-FOURTHS percent of sales into the state treasury and not less than twenty-five percent of the total amount for which tickets have been sold for games defined in paragraph one of subdivision a of this section during the preceding month; and the balance of the total revenue after payout for prizes for games known as "video lottery gaming," including any joint, multi-jurisdiction, and out-of-state video lottery gaming, § 3. Subdivision a of section 1614 of the tax law, as amended by chap- ter 170 of the laws of 1994, is amended to read as follows: a. No prize claim shall be valid if submitted to the [division] COMMISSION following the expiration of a one-year time period from the date of the drawing or from the close of the game in which a prize was won, and the person otherwise entitled to such prize shall forfeit any claim or entitlement to such prize moneys. Unclaimed prize money, plus interest earned thereon, shall be retained in the lottery prize account to be used for payment of special [lotto] or supplemental [lotto] prizes offered pursuant to the plan or plans specified in this article, [or] AND for promotional purposes to supplement [other] games on an occa- sional basis [not to exceed sixteen weeks within any twelve month period pursuant to the plan or plans specified in this article]. In the event that the director proposes to change any plan for the use of unclaimed prize funds or in the event the director intends to use funds in a game other than the game from which such unclaimed prize funds were derived, the director of the budget, the chairperson of the senate finance committee, and the chairperson of the assembly ways and means committee shall be notified in writing separately detailing the proposed changes to any plan prior to the implementation of the changes. § 4. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through D of this Part shall be as specifically set forth in the last section of such Subparts. PART EE Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision b of section 1612 of the tax law are REPEALED and two new subparagraphs (ii) and (iii) are 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. THE AMOUNT OF THE VENDOR'S FEE SHALL BE CALCULATED AS FOLLOWS: (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 S. 1509 55 A. 2009 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 ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, THE RATE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE AS FOLLOWS: (1) FORTY-THREE AND ONE-HALF PERCENT FOR A VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES BUT LESS THAN FIFTY MILES FROM A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW; (2) FORTY-NINE PERCENT FOR A VENDOR TACK LOCATED WITHIN FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW; (3) FIFTY-ONE PERCENT FOR VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES BUT LESS THAN FIFTY MILES FROM A NATIVE AMERICAN CLASS III GAMING FACIL- ITY AS DEFINED IN 25 U.S.C. §2703(8); (4) FIFTY-SIX PERCENT FOR A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C §2703(8); (B-1) NOTWITHSTANDING SUBPARAGRAPH (B) OF THIS PARAGRAPH, FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY, FOR A VENDOR TRACK THAT IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-SEVEN AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B-2) NOTWITHSTANDING SUBPARAGRAPH (B) OF THIS PARAGRAPH, FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN AND ENDING ON MARCH THIRTY-FIRST TWO THOUSAND TWENTY, FOR A VENDOR TRACK THAT IS LOCATED WITHIN SARATOGA COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-NINE AND ONE-HALF 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 LOCATED AT AQUEDUCT RACETRACK, AT A RATE OF FIFTY PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAP- TER; (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. (III) LESS ANY ADDITIONAL VENDOR'S FEES. ADDITIONAL VENDOR'S FEES SHALL BE CALCULATED AS FOLLOWS: (A) FOR A VENDOR TRACK THAT IS LOCATED WITHIN SULLIVAN COUNTY, WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, SUCH ADDITIONAL VENDOR FEE SHALL BE FIFTEEN AND ONE-TENTH PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B) FOR A VENDOR TRACK THAT IS LOCATED WITHIN ONTARIO COUNTY, WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, SUCH ADDITIONAL VENDOR FEE SHALL BE TEN PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (C) FOR A VENDOR TRACK THAT IS LOCATED WITHIN SARATOGA COUNTY, WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, SUCH ADDITIONAL VENDOR S. 1509 56 A. 2009 FEE SHALL BE TEN PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (D) FOR A VENDOR TRACK THAT IS LOCATED WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, SUCH ADDI- TIONAL VENDOR FEE SHALL BE SIX AND FOUR-TENTHS PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. THE VENDOR TRACK SHALL FORFEIT THIS ADDITIONAL VENDOR FEE FOR ANY TIME PERIOD THAT THE VENDOR TRACK DOES NOT MAINTAIN AT LEAST NINETY PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN. § 2. Subdivision b of section 1612 of the tax law is amended by adding three new paragraphs 1-a, 1-b, and 1-c to read as follows: 1-A. (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERATORS 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 EIGHTEEN 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. (II) 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, ENTER- TAINMENT 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 UNRE- IMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. (III) 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. (IV) 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 CAPITAL 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 FACILITY, HOTEL, AND CONVENTION AND EXHIBITION SPACE S. 1509 57 A. 2009 REQUIRING A MINIMUM CAPITAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT. (V) THE COMPTROLLER OR HIS LEGALLY AUTHORIZED REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGRE- GATED CAPITAL ACCOUNTS. (VI) NOTWITHSTANDING SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH, 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. (VII) ANY BALANCE REMAINING IN THE CAPITAL AWARD ACCOUNT OF A VENDOR TRACK OR OPERATOR OR ANY OTHER VIDEO LOTTERY GAMING FACILITY AS OF MARCH THIRTY-FIRST, TWO THOUSAND NINETEEN SHALL BE TRANSFERRED FOR DEPOSIT INTO A SEGREGATED ACCOUNT ESTABLISHED BY THIS SUBPARAGRAPH. 1-B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION I 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. 1-C. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERA- TOR 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. § 3. This act shall take effect immediately; provided, however, claus- es (A), (B) and (C) of subparagraph (iii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall take effect April 1, 2020 and shall expire and be deemed repealed on March 31, 2023; and provided, however, clause (D) of subparagraph (iii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall take effect June 30, 2019 and shall expire and be deemed repealed March 31, 2023. PART FF Section 1. Subdivision 25 of section 1301 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: 25. "Gross gaming revenue". The total of all sums actually received by a gaming facility licensee from gaming operations less the total of all sums paid out as winnings to patrons; provided, however, that the total of all sums paid out as winnings to patrons shall not include the cash equivalent value of any merchandise or thing of value included in a jackpot or payout[; provided further, that the issuance to or wagering by patrons of a gaming facility of any promotional gaming credit shall not be taxable for the purposes of determining gross revenue]. § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 2 to read as follows: 2. PERMISSIBLE DEDUCTIONS. (A) A GAMING FACILITY MAY DEDUCT FROM GROSS GAMING REVENUE THE AMOUNT OF APPROVED PROMOTIONAL GAMING CREDITS ISSUED S. 1509 58 A. 2009 TO AND WAGERED BY PATRONS OF SUCH GAMING FACILITY. THE AMOUNT OF APPROVED PROMOTIONAL CREDITS SHALL BE CALCULATED AS FOLLOWS: (1) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND EIGHTEEN AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY, AN AGGREGATE MAXIMUM AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVENUE AMOUNT DURING THE SPECIFIED PERIOD; (2) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-THREE, A MAXIMUM AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVEN- UE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD; AND (3) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY- THREE AND THEREAFTER, A MAXIMUM AMOUNT EQUAL TO FIFTEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVENUE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD. (B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, "BASE TAXABLE GROSS GAMING REVENUE AMOUNT" MEANS THAT PORTION OF GROSS GAMING REVENUE NOT ATTRIBUTABLE TO DEDUCTIBLE PROMOTIONAL CREDIT. (C) ANY TAX DUE ON PROMOTIONAL CREDITS DEDUCTED DURING THE FISCAL YEAR IN EXCESS OF THE ALLOWABLE DEDUCTION SHALL BE PAID WITHIN THIRTY DAYS FROM THE END OF THE FISCAL YEAR. (D) ONLY PROMOTIONAL CREDITS THAT ARE ISSUED PURSUANT TO A WRITTEN PLAN APPROVED BY THE COMMISSION AS DESIGNED TO INCREASE REVENUE AT THE FACILITY MAY BE ELIGIBLE FOR SUCH DEDUCTION. THE COMMISSION, IN CONJUNC- TION WITH THE DIRECTOR OF THE BUDGET, MAY SUSPEND APPROVAL OF ANY PLAN WHENEVER THEY JOINTLY DETERMINE THAT THE USE OF THE PROMOTIONAL CREDITS UNDER SUCH PLAN IS NOT EFFECTIVE IN INCREASING THE AMOUNT OF REVENUE EARNED. § 3. This act shall take effect immediately. PART GG Section 1. Subdivision 12 of section 502 of the racing, pari-mutuel wagering and breeding law is amended to read as follows: 12. A. The board of directors shall hold an annual meeting AND MEET NOT LESS THAN QUARTERLY. B. EACH BOARD MEMBER SHALL RECEIVE, NOT LESS THAN SEVEN DAYS IN ADVANCE OF A MEETING, DOCUMENTATION NECESSARY TO ENSURE KNOWLEDGEABLE AND ENGAGED PARTICIPATION. SUCH DOCUMENTATION SHALL INCLUDE MATERIAL RELEVANT TO EACH AGENDA ITEM INCLUDING BACKGROUND INFORMATION OF DISCUSSION ITEMS, RESOLUTIONS TO BE CONSIDERED AND ASSOCIATED DOCUMENTS, A MONTHLY FINANCIAL STATEMENT WHICH SHALL INCLUDE AN UPDATED CASH FLOW STATEMENT AND AGED PAYABLE LISTING OF INDUSTRY PAYABLES, FINANCIAL STATEMENTS, MANAGEMENT REPORTS, COMMITTEE REPORTS AND COMPLIANCE ITEMS. C. STAFF OF THE CORPORATION SHALL ANNUALLY SUBMIT TO THE BOARD FOR APPROVAL A FINANCIAL PLAN ACCOMPANIED BY EXPENDITURE, REVENUE AND CASH FLOW PROJECTIONS. THE PLAN SHALL CONTAIN PROJECTION OF REVENUES AND EXPENDITURES BASED ON REASONABLE AND APPROPRIATE ASSUMPTIONS AND METHODS OF ESTIMATIONS, AND SHALL PROVIDE THAT OPERATIONS WILL BE CONDUCTED WITHIN THE CASH RESOURCES AVAILABLE. THE FINANCIAL PLAN SHALL ALSO INCLUDE INFORMATION REGARDING PROJECTED EMPLOYMENT LEVELS, COLLECTIVE BARGAINING AGREEMENTS AND OTHER ACTIONS RELATING TO EMPLOYEE COSTS, CAPITAL CONSTRUCTION AND SUCH OTHER MATTERS AS THE BOARD MAY DIRECT. D. STAFF OF THE CORPORATION SHALL PREPARE AND SUBMIT TO THE BOARD ON A QUARTERLY BASIS A REPORT OF SUMMARIZED BUDGET DATA DEPICTING OVERALL TRENDS, BY MAJOR CATEGORY WITHIN FUNDS, OF ACTUAL REVENUES AND BUDGET EXPENDITURES FOR THE ENTIRE BUDGET RATHER THAN INDIVIDUAL LINE ITEMS, AS S. 1509 59 A. 2009 WELL AS UPDATED QUARTERLY CASH FLOW PROJECTIONS OF RECEIPTS AND DISBURSEMENTS. SUCH REPORTS SHALL COMPARE REVENUE ESTIMATES AND APPRO- PRIATIONS AS SET FORTH IN SUCH BUDGET AND IN THE QUARTERLY REVENUE AND EXPENDITURE PROJECTIONS SUBMITTED THEREWITH, WITH THE ACTUAL REVENUES AND EXPENDITURES MADE TO DATE. SUCH REPORTS SHALL ALSO COMPARE ACTUAL RECEIPTS AND DISBURSEMENTS WITH THE ESTIMATES CONTAINED IN THE CASH FLOW PROJECTIONS, TOGETHER WITH VARIANCES AND THEIR EXPLANATION. ALL QUARTER- LY REPORTS SHALL BE ACCOMPANIED BY RECOMMENDATIONS FROM THE PRESIDENT SETTING FORTH ANY REMEDIAL ACTION NECESSARY TO RESOLVE ANY UNFAVORABLE BUDGET VARIANCE INCLUDING THE OVERESTIMATION OF REVENUES AND THE UNDER- ESTIMATION OF APPROPRIATIONS. THESE REPORTS SHALL BE COMPLETED WITHIN THIRTY DAYS AFTER THE END OF EACH QUARTER AND SHALL BE SUBMITTED TO THE BOARD BY THE CORPORATION COMPTROLLER. E. REVENUE ESTIMATES AND THE FINANCIAL PLAN SHALL BE REGULARLY REEXAM- INED BY THE BOARD AND STAFF AND SHALL PROVIDE A MODIFIED FINANCIAL PLAN IN SUCH DETAIL AND WITHIN SUCH TIME PERIODS AS THE BOARD MAY REQUIRE. IN THE EVENT OF REDUCTIONS IN SUCH REVENUE ESTIMATES, THE BOARD SHALL CONSIDER AND APPROVE SUCH ADJUSTMENTS IN REVENUE ESTIMATES AND REDUCTIONS IN TOTAL EXPENDITURES AS MAY BE NECESSARY TO CONFORM TO SUCH REVISED REVENUE ESTIMATES OR AGGREGATE EXPENDITURE LIMITATIONS. § 2. Section 503 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 15 to read as follows: 15. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, A REGIONAL OFF-TRACK BETTING CORPORATION MAY, PURSUANT TO A WRITTEN PLAN AND AGREE- MENT WITH ANOTHER REGIONAL OFF-TRACK BETTING CORPORATION APPROVED BY THE COMMISSION, ASSUME THE OFF-TRACK BETTING OPERATIONS AUTHORIZED BY ARTI- CLE FIVE-A OF THIS CHAPTER OF THE OTHER REGIONAL OFF-TRACK BETTING CORPORATION. DURING THE DURATION OF ANY SUCH AGREEMENT, THE REGIONS OF ANY REGIONAL OFF-TRACK BETTING CORPORATIONS, AS DEFINED BY SECTION FIVE HUNDRED NINETEEN OF THIS CHAPTER SHALL BE DEEMED COMBINED, PROVIDED, HOWEVER, THE COMBINING OF SUCH REGIONS SHALL NOT IMPACT THE AUTHORI- ZATION OF A REGIONAL OFF-TRACK BETTING CORPORATION RELINQUISHING OFF- TRACK BETTING OPERATIONS TO BE INCORPORATED, EXERCISE OTHER POWERS, OR TO CONDUCT ANY OTHER ACTIVITIES PERMITTED OR AUTHORIZED BY LAW. § 3. Subdivision 2-a of section 1009 of the racing, pari-mutuel wager- ing and breeding law, is amended by adding a new paragraph (c) to read as follows: (C) THE BOARD MAY AUTHORIZE A SPECIAL DEMONSTRATION PROJECT TO BE LOCATED IN ANY FACILITY LICENSED PURSUANT TO ARTICLE THIRTEEN OF THIS CHAPTER. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION FIVE OF THIS SECTION, AN ADMISSION FEE SHALL NOT BE REQUIRED FOR A DEMONSTRATION PROJECT AUTHORIZED IN THIS PARAGRAPH. PROVIDED HOWEVER, ON ANY DAY WHEN A REGIONAL HARNESS TRACK CONDUCTS A LIVE RACE MEETING, A DEMONSTRATION FACILITY WITHIN THAT REGION SHALL PREDOMINANTLY DISPLAY THE LIVE VIDEO OF SUCH REGIONAL HARNESS TRACK. § 4. This act shall take effect immediately. PART HH 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 GG of chapter 59 of the laws of 2018, 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 S. 1509 60 A. 2009 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 [nineteen] TWENTY-FOUR; 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 [nineteen] TWENTY-FOUR; and (iv) no in-home simulcasting 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 GG of chapter 59 of the laws of 2018, is amended to read as follows: S. 1509 61 A. 2009 (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 [nineteen] TWENTY-FOUR, the amount used exclu- sively 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 twenty-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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY-FOUR and on any day regardless of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirti- eth, two thousand [nineteen] TWENTY-FOUR. On any day on which a fran- chised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that [have] HAS entered into a written agreement with such facility's repre- sentative 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY-FOUR. This section shall supersede 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY-FOUR. 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 S. 1509 62 A. 2009 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 GG of chapter 59 of the laws of 2018, 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 [eighteen] TWENTY-THREE, when a franchised corporation is conduct- ing 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 GG of chapter 59 of the laws of 2018, 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, [2019] 2024; 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 GG of chapter 59 of the laws of 2018, 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, [2019] 2024; 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 GG of chapter 59 of the laws of 2018, is amended to read as follows: S. 1509 63 A. 2009 (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 thou- sand one through December thirty-first, two thousand [nineteen] TWENTY- FOUR, 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 thirty-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 [nineteen] TWENTY-FOUR, such payment shall be seven-tenths of one per centum of such pools. S. 1509 64 A. 2009 § 10. This act shall take effect immediately. PART II Section 1. The racing, pari-mutuel wagering and breeding law is amended by adding a new article XI-A to read as follows: ARTICLE XI-A INTERSTATE COMPACT ON ANTI-DOPING AND DRUG TESTING STANDARDS SECTION 1113. PURPOSES. 1114. DEFINITIONS. 1115. COMPOSITION AND MEETINGS OF COMPACT COMMISSION. 1116. OPERATION OF COMPACT COMMISSION. 1117. GENERAL POWERS AND DUTIES. 1118. OTHER POWERS AND DUTIES. 1119. COMPACT RULE MAKING. 1120. STATUS AND RELATIONSHIP TO MEMBER STATES. 1121. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES. 1122. ENFORCEMENT OF COMPACT. 1123. LEGAL ACTIONS AGAINST COMPACT. 1124. RESTRICTIONS ON AUTHORITY. 1125. CONSTRUCTION, SAVINGS AND SEVERABILITY. § 1113. PURPOSES. THE PURPOSES OF THE COMPACT ARE: A. TO ENABLE MEMBER STATES TO ACT JOINTLY AND COOPERATIVELY TO CREATE MORE UNIFORM, EFFECTIVE, AND EFFICIENT BREED SPECIFIC RULES AND REGU- LATIONS RELATING TO THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDI- CATIONS FOR THE HEALTH AND WELFARE OF THE HORSE AND THE INTEGRITY OF RACING, AND TESTING FOR SUCH SUBSTANCES, IN OR AFFECTING A MEMBER STATE; AND B. TO AUTHORIZE THE NEW YORK STATE GAMING COMMISSION TO PARTICIPATE IN THE COMPACT. § 1114. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: A. "COMPACT COMMISSION" MEANS THE ORGANIZATION OF DELEGATES FROM THE MEMBER STATES THAT IS AUTHORIZED AND EMPOWERED BY THE COMPACT TO CARRY OUT THE PURPOSES OF THE COMPACT; B. "COMPACT RULE" MEANS A RULE OR REGULATION ADOPTED BY A MEMBER STATE REGULATING THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS FOR THE HEALTH AND WELFARE OF THE HORSE AND THE INTEGRITY OF RACING, AND TESTING FOR SUCH SUBSTANCES, IN LIVE PARI-MUTUEL HORSE RACING THAT OCCURS IN OR AFFECTS SUCH STATES; C. "DELEGATE" MEANS THE CHAIRPERSON OF THE MEMBER STATE RACING COMMIS- SION OR SIMILAR REGULATORY BODY IN A STATE, OR SUCH PERSON'S DESIGNEE, WHO REPRESENTS THE MEMBER STATE, AS A VOTING MEMBER OF THE COMPACT COMMISSION AND ANYONE WHO IS SERVING AS SUCH PERSON'S ALTERNATE; D. "EQUINE DRUG RULE" MEANS A RULE OR REGULATION THAT RELATES TO THE ADMINISTRATION OF DRUGS, MEDICATIONS, OR OTHER SUBSTANCES TO A HORSE THAT MAY PARTICIPATE IN LIVE HORSE RACING WITH PARI-MUTUEL WAGERING INCLUDING, BUT NOT LIMITED TO, THE REGULATION OF THE PERMISSIBLE USE OF SUCH SUBSTANCES TO ENSURE THE INTEGRITY OF RACING AND THE HEALTH, SAFETY AND WELFARE OF RACE HORSES, APPROPRIATE SANCTIONS FOR RULE VIOLATIONS, AND QUALITY LABORATORY TESTING PROGRAMS TO DETECT SUCH SUBSTANCES IN THE BODILY SYSTEM OF A RACE HORSE; E. "LIVE RACING" MEANS LIVE HORSE RACING WITH PARI-MUTUEL WAGERING; F. "MEMBER STATE" MEANS EACH STATE THAT HAS ENACTED THE COMPACT; S. 1509 65 A. 2009 G. "NATIONAL INDUSTRY STAKEHOLDER" MEANS A NON-GOVERNMENTAL ORGANIZA- TION THAT FROM A NATIONAL PERSPECTIVE SIGNIFICANTLY REPRESENTS ONE OR MORE CATEGORIES OF PARTICIPANTS IN LIVE RACING AND PARI-MUTUEL WAGERING; H. "PARTICIPANTS IN LIVE RACING" MEANS ALL PERSONS WHO PARTICIPATE IN, OPERATE, PROVIDE INDUSTRY SERVICES FOR, OR ARE INVOLVED WITH LIVE RACING WITH PARI-MUTUEL WAGERING; I. "STATE" MEANS EACH OF THE SEVERAL STATES OF THE UNITED STATES, THE DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO RICO, AND EACH TERRITO- RY OR POSSESSION OF THE UNITED STATES; AND J. "STATE RACING COMMISSION" MEANS THE STATE RACING COMMISSION, OR ITS EQUIVALENT, IN EACH MEMBER STATE. WHERE A MEMBER STATE HAS MORE THAN ONE, IT SHALL MEAN ALL SUCH RACING COMMISSIONS, OR THEIR EQUIVALENTS. § 1115. COMPOSITION AND MEETINGS OF COMPACT COMMISSION. THE MEMBER STATES SHALL CREATE AND PARTICIPATE IN A COMPACT COMMISSION AS FOLLOWS: A. THE COMPACT SHALL COME INTO FORCE WHEN ENACTED BY ANY TWO ELIGIBLE STATES, AND SHALL THEREAFTER BECOME EFFECTIVE AS TO ANY OTHER MEMBER STATE THAT ENACTS THE COMPACT. ANY STATE THAT HAS ADOPTED OR AUTHORIZED PARI-MUTUEL WAGERING OR LIVE HORSE RACING SHALL BE ELIGIBLE TO BECOME A PARTY TO THE COMPACT. A COMPACT RULE SHALL NOT BECOME EFFECTIVE IN A NEW MEMBER STATE BASED MERELY UPON IT ENTERING THE COMPACT. B. THE MEMBER STATES HEREBY CREATE THE INTERSTATE ANTI-DOPING AND DRUG TESTING STANDARDS COMPACT COMMISSION, A BODY CORPORATE AND AN INTERSTATE GOVERNMENTAL ENTITY OF THE MEMBER STATES, TO COORDINATE THE RULE MAKING ACTIONS OF EACH MEMBER STATE RACING COMMISSION THROUGH A COMPACT COMMIS- SION. C. THE COMPACT COMMISSION SHALL CONSIST OF ONE DELEGATE, THE CHAIR- PERSON OF THE STATE RACING COMMISSION OR SUCH PERSON'S DESIGNEE, FROM EACH MEMBER STATE. WHEN A DELEGATE IS NOT PRESENT TO PERFORM ANY DUTY IN THE COMPACT COMMISSION, A DESIGNATED ALTERNATE MAY SERVE. THE PERSON WHO REPRESENTS A MEMBER STATE IN THE COMPACT COMMISSION SHALL SERVE AND PERFORM SUCH DUTIES WITHOUT COMPENSATION OR REMUNERATION; PROVIDED, THAT SUBJECT TO THE AVAILABILITY OF BUDGETED FUNDS, EACH MAY BE REIMBURSED FOR ORDINARY AND NECESSARY COSTS AND EXPENSES. THE DESIGNATION OF A DELEGATE, INCLUDING THE ALTERNATE, SHALL BE EFFECTIVE WHEN WRITTEN NOTICE HAS BEEN PROVIDED TO THE COMPACT COMMISSION. THE DELEGATE, INCLUDING THE ALTERNATE, MUST BE A MEMBER OR EMPLOYEE OF THE STATE RACING COMMISSION. D. THE COMPACT DELEGATE FROM EACH STATE SHALL PARTICIPATE AS AN AGENT OF THE STATE RACING COMMISSION. EACH DELEGATE SHALL HAVE THE ASSISTANCE OF THE STATE RACING COMMISSION IN REGARD TO ALL DECISION MAKING AND ACTIONS OF THE STATE IN AND THROUGH THE COMPACT COMMISSION. E. EACH MEMBER STATE, BY ITS DELEGATE, SHALL BE ENTITLED TO ONE VOTE IN THE COMPACT COMMISSION. A MAJORITY VOTE OF THE TOTAL NUMBER OF DELEG- ATES SHALL BE REQUIRED TO PROPOSE A COMPACT RULE, RECEIVE AND DISTRIBUTE ANY FUNDS, AND TO ADOPT, AMEND, OR RESCIND THE BY-LAWS. A COMPACT RULE SHALL TAKE EFFECT IN AND FOR EACH MEMBER STATE WHEN ADOPTED BY A SUPER MAJORITY VOTE OF EIGHTY PERCENT OF THE TOTAL NUMBER OF MEMBER STATES. OTHER COMPACT ACTIONS SHALL REQUIRE A MAJORITY VOTE OF THE DELEGATES WHO ARE MEETING. F. MEETINGS AND VOTES OF THE COMPACT COMMISSION MAY BE CONDUCTED IN PERSON OR BY TELEPHONE OR OTHER ELECTRONIC COMMUNICATION. MEETINGS MAY BE CALLED BY THE CHAIRPERSON OF THE COMPACT COMMISSION OR BY ANY TWO DELEGATES. REASONABLE NOTICE OF EACH MEETING SHALL BE PROVIDED TO ALL DELEGATES SERVING IN THE COMPACT COMMISSION. G. NO ACTION MAY BE TAKEN AT A COMPACT COMMISSION MEETING UNLESS THERE IS A QUORUM, WHICH IS EITHER A MAJORITY OF THE DELEGATES IN THE COMPACT S. 1509 66 A. 2009 COMMISSION, OR WHERE APPLICABLE, ALL THE DELEGATES FROM ANY MEMBER STATES WHO PROPOSE OR ARE VOTING AFFIRMATIVELY TO ADOPT A COMPACT RULE. H. ONCE EFFECTIVE, THE COMPACT SHALL CONTINUE IN FORCE AND REMAIN BINDING ACCORDING TO ITS TERMS UPON EACH MEMBER STATE; PROVIDED THAT, A MEMBER STATE MAY WITHDRAW FROM THE COMPACT BY REPEALING THE STATUTE THAT ENACTED THE COMPACT INTO LAW. THE RACING COMMISSION OF A WITHDRAWING STATE SHALL GIVE WRITTEN NOTICE OF SUCH WITHDRAWAL TO THE COMPACT CHAIR- PERSON, WHO SHALL NOTIFY THE MEMBER STATE RACING COMMISSIONS. A WITH- DRAWING STATE SHALL REMAIN RESPONSIBLE FOR ANY UNFULFILLED OBLIGATIONS AND LIABILITIES. THE EFFECTIVE DATE OF WITHDRAWAL FROM THE COMPACT SHALL BE THE EFFECTIVE DATE OF THE REPEAL. § 1116. OPERATION OF COMPACT COMMISSION. THE COMPACT COMMISSION IS HEREBY GRANTED, SO THAT IT MAY BE AN EFFECTIVE MEANS TO PURSUE AND ACHIEVE THE PURPOSES OF EACH MEMBER STATE IN THE COMPACT, THE POWER AND DUTY: A. TO ADOPT, AMEND, AND RESCIND BY-LAWS TO GOVERN ITS CONDUCT, AS MAY BE NECESSARY OR APPROPRIATE TO CARRY OUT THE PURPOSES OF THE COMPACT; TO PUBLISH THEM IN A CONVENIENT FORM; AND TO FILE A COPY OF THEM WITH THE STATE RACING COMMISSION OF EACH MEMBER STATE; B. TO ELECT ANNUALLY FROM AMONG THE DELEGATES, INCLUDING ALTERNATES, A CHAIRPERSON, VICE-CHAIRPERSON, AND TREASURER WITH SUCH AUTHORITY AND DUTIES AS MAY BE SPECIFIED IN THE BY-LAWS; C. TO ESTABLISH AND APPOINT COMMITTEES WHICH IT DEEMS NECESSARY FOR THE CARRYING OUT OF ITS FUNCTIONS, INCLUDING ADVISORY COMMITTEES WHICH SHALL BE COMPRISED OF NATIONAL INDUSTRY STAKEHOLDERS AND ORGANIZATIONS AND SUCH OTHER PERSONS AS MAY BE DESIGNATED IN ACCORDANCE WITH THE BY-LAWS, TO OBTAIN THEIR TIMELY AND MEANINGFUL INPUT INTO THE COMPACT RULE MAKING PROCESSES; D. TO ESTABLISH AN EXECUTIVE COMMITTEE, WITH MEMBERSHIP ESTABLISHED IN THE BY-LAWS, WHICH SHALL OVERSEE THE DAY-TO-DAY ACTIVITIES OF COMPACT ADMINISTRATION AND MANAGEMENT BY THE EXECUTIVE DIRECTOR AND STAFF; HIRE AND FIRE AS MAY BE NECESSARY AFTER CONSULTATION WITH THE COMPACT COMMIS- SION; ADMINISTER AND ENFORCE COMPLIANCE WITH THE PROVISIONS, BY-LAWS, AND RULES OF THE COMPACT; AND PERFORM SUCH OTHER DUTIES AS THE BY-LAWS MAY ESTABLISH; E. TO CREATE, APPOINT, AND ABOLISH ALL THOSE OFFICES, EMPLOYMENTS, AND POSITIONS, INCLUDING AN EXECUTIVE DIRECTOR, USEFUL TO FULFILL ITS PURPOSES; F. TO DELEGATE DAY-TO-DAY MANAGEMENT AND ADMINISTRATION OF ITS DUTIES, AS NEEDED, TO AN EXECUTIVE DIRECTOR AND SUPPORT STAFF; AND G. TO ADOPT AN ANNUAL BUDGET SUFFICIENT TO PROVIDE FOR THE PAYMENT OF THE REASONABLE EXPENSES OF ITS ESTABLISHMENT, ORGANIZATION, AND ONGOING ACTIVITIES; PROVIDED, THAT THE BUDGET SHALL BE FUNDED BY ONLY VOLUNTARY CONTRIBUTIONS. § 1117. GENERAL POWERS AND DUTIES. TO ALLOW EACH MEMBER STATE, AS AND WHEN IT CHOOSES, TO ACHIEVE THE PURPOSE OF THE COMPACT THROUGH JOINT AND COOPERATIVE ACTION, THE MEMBER STATES ARE HEREBY GRANTED THE POWER AND DUTY, BY AND THROUGH THE COMPACT COMMISSION: A. TO ACT JOINTLY AND COOPERATIVELY TO CREATE A MORE EQUITABLE AND UNIFORM PARI-MUTUEL RACING AND WAGERING INTERSTATE REGULATORY FRAMEWORK BY THE ADOPTION OF STANDARDIZED RULES FOR THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS FOR THE HEALTH, AND WELFARE OF THE HORSE AND THE INTEGRITY OF RACING, INCLUDING RULES GOVERNING THE USE OF DRUGS AND MEDICATIONS AND DRUG TESTING; B. TO COLLABORATE WITH NATIONAL INDUSTRY STAKEHOLDERS AND INDUSTRY ORGANIZATIONS, INCLUDING THE ASSOCIATION OF RACING COMMISSIONERS INTER- S. 1509 67 A. 2009 NATIONAL, INC. AND THE RACING MEDICATION AND TESTING CONSORTIUM, IN THE DESIGN AND IMPLEMENTATION OF COMPACT RULES IN A MANNER THAT SERVES THE BEST INTERESTS OF RACING; AND C. TO PROPOSE AND ADOPT BREED SPECIFIC COMPACT EQUINE DRUGS AND MEDI- CATIONS RULES FOR THE HEALTH, AND WELFARE OF THE HORSE, INCLUDING RULES GOVERNING THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS AND DRUG TESTING, WHICH SHALL HAVE THE FORCE AND EFFECT OF STATE RULES OR REGULATIONS IN THE MEMBER STATES, TO GOVERN LIVE PARI-MUTUEL HORSE RACING. § 1118. OTHER POWERS AND DUTIES. THE COMPACT COMMISSION MAY EXERCISE SUCH INCIDENTAL POWERS AND DUTIES AS MAY BE NECESSARY AND PROPER FOR IT TO FUNCTION IN A USEFUL MANNER, INCLUDING BUT NOT LIMITED TO THE POWER AND DUTY: A. TO ENTER INTO CONTRACTS AND AGREEMENTS WITH GOVERNMENTAL AGENCIES AND OTHER PERSONS, INCLUDING OFFICERS AND EMPLOYEES OF A MEMBER STATE, TO PROVIDE PERSONAL SERVICES FOR ITS ACTIVITIES AND SUCH OTHER SERVICES AS MAY BE NECESSARY; B. TO BORROW, ACCEPT, AND CONTRACT FOR THE SERVICES OF PERSONNEL FROM ANY STATE, FEDERAL, OR OTHER GOVERNMENTAL AGENCY, OR FROM ANY OTHER PERSON OR ENTITY; C. TO RECEIVE INFORMATION FROM AND TO PROVIDE INFORMATION TO EACH MEMBER STATE RACING COMMISSION, INCLUDING ITS OFFICERS AND STAFF, ON SUCH TERMS AND CONDITIONS AS MAY BE ESTABLISHED IN THE BY-LAWS; D. TO ACQUIRE, HOLD, AND DISPOSE OF ANY REAL OR PERSONAL PROPERTY BY GIFT, GRANT, PURCHASE, LEASE, LICENSE, AND SIMILAR MEANS AND TO RECEIVE ADDITIONAL FUNDS THROUGH GIFTS, GRANTS, AND APPROPRIATIONS; E. WHEN AUTHORIZED BY A COMPACT RULE, TO CONDUCT HEARINGS AND RENDER REPORTS AND ADVISORY DECISIONS AND ORDERS; AND F. TO ESTABLISH IN THE BY-LAWS THE REQUIREMENTS THAT SHALL DESCRIBE AND GOVERN ITS DUTIES TO CONDUCT OPEN OR PUBLIC MEETINGS AND TO PROVIDE PUBLIC ACCESS TO COMPACT RECORDS AND INFORMATION. § 1119. COMPACT RULE MAKING. IN THE EXERCISE OF ITS RULE MAKING AUTHORITY, THE COMPACT COMMISSION SHALL: A. ENGAGE IN FORMAL RULE MAKING PURSUANT TO A PROCESS THAT SUBSTAN- TIALLY CONFORMS TO THE MODEL STATE ADMINISTRATIVE PROCEDURE ACT OF 1981 AS AMENDED, AS MAY BE APPROPRIATE TO THE ACTIONS AND OPERATIONS OF THE COMPACT COMMISSION; B. GATHER INFORMATION AND ENGAGE IN DISCUSSIONS WITH ADVISORY COMMIT- TEES, NATIONAL INDUSTRY STAKEHOLDERS, AND OTHERS, INCLUDING AN OPPORTU- NITY FOR INDUSTRY ORGANIZATIONS TO SUBMIT INPUT TO MEMBER STATE RACING COMMISSIONS ON THE STATE LEVEL, TO FOSTER, PROMOTE AND CONDUCT A COLLA- BORATIVE APPROACH IN THE DESIGN AND ADVANCEMENT OF COMPACT RULES IN A MANNER THAT SERVES THE BEST INTERESTS OF RACING AND AS ESTABLISHED IN THE BY-LAWS; C. DIRECT THE PUBLICATION IN EACH MEMBER STATE OF EACH EQUINE DRUG RULE PROPOSED BY THE COMPACT COMMISSION, CONDUCT A REVIEW OF PUBLIC COMMENTS RECEIVED BY EACH MEMBER STATE RACING COMMISSION AND THE COMPACT COMMISSION IN RESPONSE TO THE PUBLICATION OF ITS RULE MAKING PROPOSALS, CONSULT WITH NATIONAL INDUSTRY STAKEHOLDERS AND PARTICIPANTS IN LIVE RACING WITH REGARD TO SUCH PROCESS AND ANY REVISIONS TO THE COMPACT RULE PROPOSAL, AND MEET UPON THE COMPLETION OF THE PUBLIC COMMENT PERIOD TO CONDUCT A VOTE ON THE ADOPTION OF THE PROPOSED COMPACT RULE AS A STATE RULE IN THE MEMBER STATES; AND D. HAVE A STANDING COMMITTEE THAT REVIEWS AT LEAST QUARTERLY THE PARTICIPATION IN AND VALUE OF COMPACT RULES AND, WHEN IT DETERMINES THAT A REVISION IS APPROPRIATE OR WHEN REQUESTED TO BY ANY MEMBER STATE, S. 1509 68 A. 2009 SUBMITS A REVISING PROPOSED COMPACT RULE. TO THE EXTENT A REVISION WOULD ONLY ADD OR REMOVE A MEMBER STATE OR STATES FROM WHERE A COMPACT RULE HAS BEEN ADOPTED, THE VOTE REQUIRED BY THIS SECTION SHALL BE REQUIRED OF ONLY SUCH STATE OR STATES. THE STANDING COMMITTEE SHALL GATHER INFORMA- TION AND ENGAGE IN DISCUSSIONS WITH NATIONAL INDUSTRY STAKEHOLDERS, WHO MAY ALSO DIRECTLY RECOMMEND A COMPACT RULE PROPOSAL OR REVISION TO THE COMPACT COMMITTEE. § 1120. STATUS AND RELATIONSHIP TO MEMBER STATES. A. THE COMPACT COMMISSION, AS AN INTERSTATE GOVERNMENTAL ENTITY, SHALL BE EXEMPT FROM ALL TAXATION IN AND BY THE MEMBER STATES. B. THE COMPACT COMMISSION SHALL NOT PLEDGE THE CREDIT OF ANY MEMBER STATE EXCEPT BY AND WITH THE APPROPRIATE LEGAL AUTHORITY OF THAT STATE. C. EACH MEMBER STATE SHALL REIMBURSE OR OTHERWISE PAY THE EXPENSES OF ITS DELEGATE, INCLUDING ANY ALTERNATE, IN THE COMPACT COMMISSION. D. NO MEMBER STATE, EXCEPT AS PROVIDED IN SECTION ELEVEN HUNDRED TWEN- TY-THREE OF THIS ARTICLE, SHALL BE HELD LIABLE FOR THE DEBTS OR OTHER FINANCIAL OBLIGATIONS INCURRED BY THE COMPACT COMMISSION. E. NO MEMBER STATE SHALL HAVE, WHILE IT PARTICIPATES IN THE COMPACT COMMISSION, ANY CLAIM TO OR OWNERSHIP OF ANY PROPERTY HELD BY OR VESTED IN THE COMPACT COMMISSION OR TO ANY COMPACT COMMISSION FUNDS HELD PURSU- ANT TO THE COMPACT EXCEPT FOR STATE LICENSE OR OTHER FEES OR MONEYS COLLECTED BY THE COMPACT COMMISSION AS ITS AGENT. F. THE COMPACT DISSOLVES UPON THE DATE OF THE WITHDRAWAL OF THE MEMBER STATE THAT REDUCES MEMBERSHIP IN THE COMPACT TO ONE STATE. UPON DISSOL- UTION, THE COMPACT BECOMES NULL AND VOID AND SHALL BE OF NO FURTHER FORCE OR EFFECT, ALTHOUGH EQUINE DRUG RULES ADOPTED THROUGH THE COMPACT SHALL REMAIN STATE RULES IN EACH MEMBER STATE THAT HAD ADOPTED THEM, AND THE BUSINESS AND AFFAIRS OF THE COMPACT SHALL BE CONCLUDED AND ANY SURPLUS FUNDS SHALL BE DISTRIBUTED TO THE FORMER MEMBER STATES IN ACCORDANCE WITH THE BY-LAWS. § 1121. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES. A. EACH MEMBER STATE IN THE COMPACT SHALL ACCEPT THE DECISIONS, DULY APPLICABLE TO IT, OF THE COMPACT COMMISSION IN REGARD TO COMPACT RULES AND RULE MAKING. B. THE COMPACT SHALL NOT BE CONSTRUED TO DIMINISH OR LIMIT THE POWERS AND RESPONSIBILITIES OF THE MEMBER STATE RACING COMMISSION OR SIMILAR REGULATORY BODY, OR TO INVALIDATE ANY ACTION IT HAS PREVIOUSLY TAKEN, EXCEPT TO THE EXTENT IT HAS, BY ITS COMPACT DELEGATE, EXPRESSED ITS CONSENT TO A SPECIFIC RULE OR OTHER ACTION OF THE COMPACT COMMISSION. THE COMPACT DELEGATE FROM EACH STATE SHALL SERVE AS THE AGENT OF THE STATE RACING COMMISSION AND SHALL POSSESS SUBSTANTIAL KNOWLEDGE AND EXPERIENCE AS A REGULATOR OR PARTICIPANT IN THE HORSE RACING INDUSTRY. § 1122. ENFORCEMENT OF COMPACT. A. THE COMPACT COMMISSION SHALL HAVE STANDING TO INTERVENE IN ANY LEGAL ACTION THAT PERTAINS TO THE SUBJECT MATTER OF THE COMPACT AND MIGHT AFFECT ITS POWERS, DUTIES, OR ACTIONS. B. THE COURTS AND EXECUTIVE IN EACH MEMBER STATE SHALL ENFORCE THE COMPACT AND TAKE ALL ACTIONS NECESSARY AND APPROPRIATE TO EFFECTUATE ITS PURPOSES AND INTENT. COMPACT PROVISIONS, BY-LAWS, AND RULES SHALL BE RECEIVED BY ALL JUDGES, DEPARTMENTS, AGENCIES, BODIES, AND OFFICERS OF EACH MEMBER STATE AND ITS POLITICAL SUBDIVISIONS AS EVIDENCE OF THEM. § 1123. LEGAL ACTIONS AGAINST COMPACT. A. ANY PERSON MAY COMMENCE A CLAIM, ACTION, OR PROCEEDING AGAINST THE COMPACT COMMISSION IN STATE COURT FOR DAMAGES. THE COMPACT COMMISSION SHALL HAVE THE BENEFIT OF THE SAME LIMITS OF LIABILITY, DEFENSES, RIGHTS TO INDEMNITY AND DEFENSE BY THE STATE, AND OTHER LEGAL RIGHTS AND DEFENSES FOR NON-COMPACT MATTERS OF THE STATE RACING COMMISSION IN THE STATE. ALL LEGAL RIGHTS AND S. 1509 69 A. 2009 DEFENSES THAT ARISE FROM THE COMPACT SHALL ALSO BE AVAILABLE TO THE COMPACT COMMISSION. B. A COMPACT DELEGATE, ALTERNATE, OR OTHER MEMBER OR EMPLOYEE OF A STATE RACING COMMISSION WHO UNDERTAKES COMPACT ACTIVITIES OR DUTIES DOES SO IN THE COURSE OF BUSINESS OF THEIR STATE RACING COMMISSION, AND SHALL HAVE THE BENEFIT OF THE SAME LIMITS OF LIABILITY, DEFENSES, RIGHTS TO INDEMNITY AND DEFENSE BY THE STATE, AND OTHER LEGAL RIGHTS AND DEFENSES FOR NON-COMPACT MATTERS OF STATE EMPLOYEES IN THEIR STATE. THE EXECUTIVE DIRECTOR AND OTHER EMPLOYEES OF THE COMPACT COMMISSION SHALL HAVE THE BENEFIT OF THESE SAME LEGAL RIGHTS AND DEFENSES OF STATE EMPLOYEES IN THE MEMBER STATE IN WHICH THEY ARE PRIMARILY EMPLOYED. ALL LEGAL RIGHTS AND DEFENSES THAT ARISE FROM THE COMPACT SHALL ALSO BE AVAILABLE TO THEM. C. EACH MEMBER STATE SHALL BE LIABLE FOR AND PAY JUDGMENTS FILED AGAINST THE COMPACT COMMISSION TO THE EXTENT RELATED TO ITS PARTIC- IPATION IN THE COMPACT. WHERE LIABILITY ARISES FROM ACTION UNDERTAKEN JOINTLY WITH OTHER MEMBER STATES, THE LIABILITY SHALL BE DIVIDED EQUALLY AMONG THE STATES FOR WHOM THE APPLICABLE ACTION OR OMISSION OF THE EXEC- UTIVE DIRECTOR OR OTHER EMPLOYEES OF THE COMPACT COMMISSION WAS UNDER- TAKEN; AND NO MEMBER STATE SHALL CONTRIBUTE TO OR PAY, OR BE JOINTLY OR SEVERALLY OR OTHERWISE LIABLE FOR, ANY PART OF ANY JUDGMENT BEYOND ITS SHARE AS DETERMINED IN ACCORDANCE WITH THIS SECTION. § 1124. RESTRICTIONS ON AUTHORITY. A. NEW YORK SUBSTANTIVE STATE LAWS APPLICABLE TO PARI-MUTUEL HORSE RACING AND WAGERING SHALL REMAIN IN FULL FORCE AND EFFECT. B. COMPACT RULES SHALL NOT PRECLUDE SUBSEQUENT RULEMAKING IN NEW YORK STATE ON THE SAME OR RELATED MATTER. THE MOST RECENTLY ADOPTED RULE SHALL THEREBY BECOME THE GOVERNING LAW. C. NEW YORK STATE SHALL NOT PARTICIPATE IN OR APPLY THIS INTERSTATE COMPACT TO ANY ASPECT OF STANDARDBRED RACING. § 1125. CONSTRUCTION, SAVINGS AND SEVERABILITY. A. THE COMPACT SHALL BE LIBERALLY CONSTRUED SO AS TO EFFECTUATE ITS PURPOSES. THE PROVISIONS OF THE COMPACT SHALL BE SEVERABLE AND IF ANY PHRASE, CLAUSE, SENTENCE, OR PROVISION OF THE COMPACT IS DECLARED TO BE CONTRARY TO THE CONSTITU- TION OF THE UNITED STATES OR OF ANY MEMBER STATE, OR THE APPLICABILITY OF THE COMPACT TO ANY GOVERNMENT, AGENCY, PERSON, OR CIRCUMSTANCE IS HELD INVALID, THE VALIDITY OF THE REMAINDER OF THE COMPACT AND ITS APPLICABILITY TO ANY GOVERNMENT, AGENCY, PERSON, OR CIRCUMSTANCE SHALL NOT BE AFFECTED. IF ALL OR SOME PORTION OF THE COMPACT IS HELD TO BE CONTRARY TO THE CONSTITUTION OF ANY MEMBER STATE, THE COMPACT SHALL REMAIN IN FULL FORCE AND EFFECT AS TO THE REMAINING MEMBER STATES AND IN FULL FORCE AND EFFECT AS TO THE STATE AFFECTED AS TO ALL SEVERABLE MATTERS. B. IN THE EVENT OF ANY ALLEGATION, FINDING, OR RULING AGAINST THE COMPACT OR ITS PROCEDURES OR ACTIONS, PROVIDED THAT A MEMBER STATE HAS FOLLOWED THE COMPACT'S STATED PROCEDURES, ANY RULE IT PURPORTED TO ADOPT USING THE PROCEDURES OF THIS STATUTE SHALL CONSTITUTE A DULY ADOPTED AND VALID STATE RULE. § 2. This act shall take effect immediately. PART JJ Section 1. Section 2 of part EE of chapter 59 of the laws of 2018, amending the racing, pari-mutuel wagering and breeding law, relating to adjusting the franchise payment establishing an advisory committee to S. 1509 70 A. 2009 review the structure, operations and funding of equine drug testing and research, is amended to read as follows: § 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] 2019 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 2. Subdivision 1 of section 902 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 15 of the laws of 2010, is amended to read as follows: 1. In order to assure the public's confidence and continue the high degree of integrity in racing at the pari-mutuel betting tracks, equine drug testing at race meetings shall be conducted by a [state college within this state with an approved equine science program] SUITABLE LABORATORY, AS THE GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION. The [state racing and wagering board] GAMING COMMISSION shall promulgate any rules and regulations necessary to implement the provisions of this section, including administrative penalties of loss of purse money, fines, or denial, suspension[,] or revocation of a license for racing drugged horses. § 3. This act shall take effect immediately. PART KK Section 1. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 104-a to read as follows: § 104-A. REGISTRATION TO ENGAGE IN GAMING ACTIVITY. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMISSION MAY REQUIRE ANY PERSON, CORPORATION OR ASSOCIATION INTENDING TO ENGAGE IN ANY GAMING ACTIVITY REGULATED BY THE COMMISSION TO SUBMIT A PRIMARY REGISTRATION TO THE COMMISSION. 1. FOR THE PURPOSES OF THIS SECTION, WHEN A PERSON IS REQUIRED TO SUBMIT A REGISTRATION, ANY AND ALL LICENSES, REGISTRATIONS, CERTIF- ICATES, PERMITS OR APPROVALS ISSUED TO SUCH PERSON AS REQUIRED UNDER THIS CHAPTER OR UNDER ARTICLE THIRTY-FOUR OF THE TAX LAW SHALL BE CONSIDERED SUB-REGISTRATIONS OR SUB-LICENSES TO THE AFOREMENTIONED S. 1509 71 A. 2009 REGISTRATION. NO INDIVIDUAL SHALL ENGAGE IN ANY GAMING ACTIVITY WITHOUT A VALID SUB-REGISTRATION OR SUB-LICENSE AUTHORIZING SUCH ACTIVITY. 2. THE PRIMARY REGISTRATION TO ENGAGE IN GAMING ACTIVITIES SHALL SOLE- LY BE AN INFORMATIONAL RETURN CONTAINING SUCH INFORMATION THE COMMISSION DEEMS APPLICABLE TO ALL SUB-REGISTRATIONS OR SUB-LICENSES. THE COMMIS- SION SHALL REQUIRE SEPARATE APPLICATIONS FOR ALL SUB-REGISTRATIONS OR SUB-LICENSES CONTAINING ALL SUPPLEMENTAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY. ALL COMMISSION DETERMINATIONS SHALL BE MADE ON AN APPLICANT'S SUB-RE- GISTRATION OR SUB-LICENSE AND NOT ON THE PRIMARY REGISTRATION. ANY INFORMATION OBTAINED FOR OR CONTAINED IN THE PRIMARY REGISTRATION AND ALL ASSOCIATED SUB-REGISTRATIONS OR SUB-LICENSES MAY BE USED IN ANY SUBSEQUENT LICENSING AND REGISTRATION DETERMINATIONS. 3. PURSUANT TO THE COMMISSION'S AUTHORITY GRANTED BY SUBDIVISIONS THIRTEEN AND FOURTEEN OF SECTION ONE HUNDRED FOUR OF THIS ARTICLE, THE COMMISSION MAY REQUIRE A BACKGROUND INVESTIGATION AND A CRIMINAL HISTORY RECORD SEARCH FOR ANY PRIMARY OR SUB-REGISTRATION OR SUB-LICENSE SOUGHT. THE COMMISSION SHALL HAVE THE RIGHT TO REQUEST NEW INFORMATION UPON SUBMISSION OF ANY NEW SUB-REGISTRATION OR SUB-LICENSE APPLICATION. FOR THE PURPOSES OF THIS SECTION, UPON AN INITIAL SUB-REGISTRATION OR SUB-LICENSE APPLICATION AND ANY SUBSEQUENT SUB-APPLICATIONS AS MAY BE REQUIRED BY THE COMMISSION, EACH APPLICANT SHALL SUBMIT TO THE COMMIS- SION THE APPLICANT'S NAME, ADDRESS, FINGERPRINTS AND WRITTEN CONSENT FOR CRIMINAL HISTORY INFORMATION AS DEFINED IN PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-FIVE-B OF THE EXECUTIVE LAW, TO BE PERFORMED. THE COMMISSION IS HEREBY AUTHORIZED TO EXCHANGE FINGERPRINT DATA WITH AND RECEIVE CRIMINAL HISTORY RECORD INFORMATION FROM THE STATE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE FEDERAL BUREAU OF INVESTI- GATION CONSISTENT WITH APPLICABLE STATE AND FEDERAL LAWS, RULES AND REGULATIONS. THE APPLICANT SHALL PAY THE FEE FOR SUCH CRIMINAL HISTORY INFORMATION AS ESTABLISHED PURSUANT TO ARTICLE THIRTY-FIVE OF THE EXECU- TIVE LAW. THE STATE DIVISION OF CRIMINAL JUSTICE SERVICES SHALL PROMPTLY NOTIFY THE COMMISSION IN THE EVENT A CURRENT OR PROSPECTIVE LICENSEE, WHO WAS THE SUBJECT OF SUCH CRIMINAL HISTORY INFORMATION PURSUANT TO THIS SECTION, IS ARRESTED FOR A CRIME OR OFFENSE IN THIS STATE AFTER THE DATE THE CHECK WAS PERFORMED. 4. PRIMARY REGISTRATIONS SHALL EXPIRE FIVE YEARS FROM THE DATE OF SUBMISSION, PROVIDED, HOWEVER, ANY SUB-REGISTRATION OR SUB-LICENSE SHALL CONTINUE THROUGH ITS EXPIRATION. NOTWITHSTANDING THIS PROVISION, THE COMMISSION MAY SUSPEND ANY SUB-REGISTRATION OR SUB-LICENSE THAT HAS AN EXPIRED PRIMARY REGISTRATION UNTIL SUCH PRIMARY REGISTRATION IS RENEWED. THE COMMISSION SHALL ESTABLISH A SCHEDULE TO REGISTER ANY INDIVIDUAL OR ENTITY WHO POSSESSED A SUB-REGISTRATION OR SUB-LICENSE PRIOR TO THE IMPLEMENTATION OF THIS SECTION. 5. THE COMMISSION SHALL PROMULGATE RULES AND REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION AND ENSURE THAT ALL LICENSING AND REGIS- TRATION REQUIREMENTS OF THIS CHAPTER AND ARTICLE THIRTY-FOUR OF THE TAX LAW ARE ADEQUATELY ADDRESSED IN THE IMPLEMENTATION. § 2. Section 1301 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 31-a to read as follows: 31-A. "NON-GAMING EMPLOYEE". ANY NATURAL PERSON, NOT OTHERWISE INCLUDED IN THE DEFINITION OF CASINO KEY EMPLOYEE OR GAMING EMPLOYEE, WHO IS EMPLOYED BY A GAMING FACILITY LICENSEE, OR A HOLDING OR INTERME- DIARY COMPANY OF A GAMING FACILITY LICENSEE, AND PERFORMS SERVICES AND DUTIES UPON THE PREMISES OF A GAMING FACILITY, WHOSE DUTIES DO NOT RELATE TO THE OPERATION OF GAMING ACTIVITIES, AND WHO IS NOT REGULARLY S. 1509 72 A. 2009 REQUIRED TO WORK IN RESTRICTED AREAS SUCH THAT REGISTRATION OF A NON- GAMING EMPLOYEE IS APPROPRIATE. § 3. Paragraph (c) of subdivision 1 of section 1318 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: (c) the conviction of the applicant, or of any person required to be qualified under this article as a condition of a license, of any offense in any jurisdiction which is or would be a [felony or other] crime involving public integrity, embezzlement, theft, fraud, [or] perjury, REPRESENTS A SIGNIFICANT THREAT TO PUBLIC SAFETY, OR WOULD OTHERWISE POSE A THREAT TO THE EFFECTIVE REGULATION OF CASINO GAMING; § 4. Subdivision 4 of section 1322 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: 4. All applicants, licensees, registrants, and any other person who shall be qualified pursuant to this article shall have the continuing duty to provide any assistance or information required by the commis- sion, and to cooperate in any inquiry, investigation or hearing conducted by the commission. If, upon issuance of a formal request to answer or produce information, evidence or testimony, any applicant, licensee, registrant, or any other person who shall be qualified pursu- ant to this article refuses to comply, the application, license, regis- tration or qualification of such person may be SUSPENDED, denied or revoked. § 5. Subdivision 3 of section 1323 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: 3. The commission shall deny a casino key employee license to any applicant who is disqualified on the basis of the criteria contained in section [one thousand three] THIRTEEN hundred eighteen of this [title] ARTICLE, subject to notice and hearing. PROVIDED THAT, NO CASINO KEY EMPLOYEE LICENSE SHALL BE DENIED OR REVOKED ON THE BASIS OF A CONVICTION OF ANY OF THE OFFENSES ENUMERATED IN THIS ARTICLE AS DISQUALIFICATION CRITERIA OR THE COMMISSION OF ANY ACT OR ACTS WHICH WOULD CONSTITUTE ANY OFFENSE UNDER SECTION THIRTEEN HUNDRED EIGHTEEN OF THIS ARTICLE, PROVIDED THAT THE APPLICANT HAS AFFIRMATIVELY DEMONSTRATED THE APPLI- CANT'S REHABILITATION, PURSUANT TO ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW. § 6. Subdivision 4 of section 1323 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: 4. Upon [receipt of such criminal history information] DETERMINATION THAT AN APPLICANT IS DISQUALIFIED ON THE BASIS OF THE APPLICANT'S CRIMI- NAL HISTORY, the commission shall provide such applicant with a copy of such criminal history information, together with a copy of article twen- ty-three-A of the correction law, and inform such applicant of his or her right to seek correction of any incorrect information contained in such criminal history information pursuant to regulations and procedures established by the division of criminal justice services. Except as otherwise provided by law, such criminal history information shall be confidential and any person who willfully permits the release of such confidential criminal history information to persons not permitted to receive such information shall be guilty of a misdemeanor. § 7. Section 1324 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: S. 1509 73 A. 2009 § 1324. Gaming AND NON-GAMING employee registration. 1. No person may commence employment as a gaming OR NON-GAMING employee unless such person has a valid registration [on file with the] ISSUED BY THE commis- sion, which registration shall be prepared and filed in accordance with the regulations promulgated hereunder. 2. A gaming OR NON-GAMING employee registrant shall produce such information as the commission by regulation may require. [Subsequent to the registration of a gaming employee, the executive director may] THE COMMISSION MAY DENY, revoke, suspend, limit, or otherwise restrict the registration upon a finding that the registrant is disqualified on the basis of the criteria contained in section [one thousand three] THIRTEEN hundred eighteen of this [title] ARTICLE. If a gaming OR NON-GAMING employee registrant has not been employed in any position within a gaming facility for a period of three years, the registration of that gaming OR NON-GAMING employee shall lapse. 3. No gaming OR NON-GAMING employee registration shall be denied or revoked on the basis of a [misdemeanor] conviction of any of the offenses enumerated in this article as disqualification criteria or the commission of any act or acts which would constitute any offense under section [one thousand three] THIRTEEN hundred eighteen of this [title] ARTICLE, provided that the registrant has affirmatively demonstrated the registrant's rehabilitation, pursuant to article twenty-three-A of the correction law. 4. For the purposes of this section, each GAMING OR NON-GAMING regis- trant shall submit to the commission the registrant's name, address, fingerprints and written consent for a criminal history information to be performed. The commission is hereby authorized to exchange finger- print data with and receive criminal history information as defined in paragraph (c) of subdivision one of section eight hundred forty-five-b of the executive law from the state division of criminal justice services and the federal bureau of investigation consistent with appli- cable state and federal laws, rules and regulations. The registrant shall pay the fee for such criminal history information as established pursuant to article thirty-five of the executive law. The state division of criminal justice services shall promptly notify the commission in the event a current or prospective licensee OR REGISTRANT, who was the subject of a criminal history information pursuant to this section, is arrested for a crime or offense in this state after the date the check was performed. 5. Upon [receipt of such criminal history information] DETERMINATION THAT AN APPLICANT IS DISQUALIFIED ON THE BASIS OF THE APPLICANT'S CRIMI- NAL HISTORY, the [Commission] COMMISSION shall provide such applicant with a copy of such criminal history information, together with a copy of article twenty-three-A of the correction law, and inform such appli- cant of his or her right to seek correction of any incorrect information contained in such criminal history information pursuant to regulations and procedures established by the division of criminal justice services. Except as otherwise provided by law, such criminal history information shall be confidential and any person who willfully permits the release of such confidential criminal history information to persons not permit- ted to receive such information shall be guilty of a misdemeanor. 6. EACH APPLICANT FOR A GAMING REGISTRATION SHALL PRODUCE SUCH INFOR- MATION, DOCUMENTATION AND ASSURANCES AS MAY BE REQUIRED TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THE APPLICANT'S GOOD CHARACTER, HONESTY AND INTEGRITY. SUCH INFORMATION SHALL INCLUDE DATA PERTAINING TO CHARAC- TER, REPUTATION, CRIMINAL HISTORY INFORMATION AND PRIOR ASSOCIATIONS S. 1509 74 A. 2009 WITH GAMING OPERATIONS IN ANY CAPACITY, POSITION, OR EMPLOYMENT IN A JURISDICTION THAT PERMITS SUCH ACTIVITY. § 8. Section 1325 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: § 1325. Approval, denial and renewal of employee licenses and regis- trations. 1. Upon the filing of an application for a casino key employee license or gaming employee registration required by this article and after submission of such supplemental information as the commission may require, the commission shall conduct or cause to be conducted such investigation into the qualification of the applicant, and the commis- sion shall conduct such hearings concerning the qualification of the applicant, in accordance with its regulations, as may be necessary to determine qualification for such license OR REGISTRATION. UPON THE FILING OF AN APPLICATION FOR A NON-GAMING EMPLOYEE REGISTRATION, AND AFTER SUBMISSION OF SUCH SUPPLEMENTAL INFORMATION AS THE COMMISSION MAY REQUIRE, THE COMMISSION MAY, IN ITS DISCRETION, CONDUCT OR CAUSE TO BE CONDUCTED AN INVESTIGATION INTO THE QUALIFICATION OF SUCH APPLICANT. 2. After such investigation, the commission may either deny the appli- cation or grant a license OR REGISTRATION to an applicant whom it deter- mines to be qualified to hold such license OR REGISTRATION. THE GRANTING OF ANY SUCH LICENSE OR REGISTRATION SHALL APPLY ONLY TO THE JOB TITLE INCLUDED IN THE APPLICATION AND TO ITS ASSOCIATED DUTIES. THE COMMISSION MAY, UPON REQUEST AND AT ITS SOLE DISCRETION, ALLOW TRANSFER OF THE LICENSE OR REGISTRATION TO ANOTHER JOB TITLE UPON DETERMINATION THAT THE ORIGINAL APPLICATION WOULD HAVE BEEN SATISFACTORY HAD IT BEEN SUBMITTED FOR THE NEW TITLE. 3. The commission shall have the authority to deny any application pursuant to the provisions of this article following notice and opportu- nity for hearing. 4. When the commission grants [an application] A LICENSE OR REGISTRA- TION, the commission may limit or place such restrictions thereupon as it may deem necessary in the public interest. 5. After an application for a casino key employee license is submit- ted, final action of the commission shall be taken within ninety days after completion of all hearings and investigations and the receipt of all information required by the commission. 6. Licenses and registrations of casino key employees and gaming AND NON-GAMING employees issued pursuant to this article shall remain valid for five years unless suspended, revoked or voided pursuant to law. Such licenses and registrations may be renewed by the holder thereof upon application, on a form prescribed by the commission, and payment of the applicable fee. Notwithstanding the [forgoing] FOREGOING, if a gaming OR NON-GAMING employee registrant has not been employed in any position within a gaming facility for a period of three years, the registration of that gaming OR NON-GAMING employee shall lapse. 7. SUBSEQUENT TO THE ISSUANCE OF A LICENSE OR REGISTRATION, THE COMMISSION MAY SUSPEND, REVOKE, OR LIMIT THE LICENSE OR REGISTRATION UPON A FINDING THAT AN APPLICANT IS NO LONGER QUALIFIED TO HOLD SUCH LICENSE OR REGISTRATION IN ACCORDANCE WITH THIS ARTICLE, OR AS IT MAY DEEM NECESSARY TO PROTECT THE PUBLIC INTEREST, FOLLOWING NOTICE AND AN OPPORTUNITY FOR A HEARING. THE COMMISSION MAY TEMPORARILY SUSPEND A LICENSE OR REGISTRATION PENDING ANY INVESTIGATION, PROSECUTION, OR HEAR- ING IF IT IS DEEMED NECESSARY TO DO SO TO PROTECT THE INTEGRITY OF GAMING ACTIVITIES. S. 1509 75 A. 2009 8. The commission shall establish by regulation appropriate fees to be paid upon the filing of the required applications. Such fees shall be deposited into the commercial gaming revenue fund. § 9. Subdivision 3 of section 1326 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: 3. Vendors providing goods and services to gaming facility licensees or applicants ancillary to gaming, INCLUDING VENDORS WITH ACCESS TO THE PLAYER DATABASE OR SENSITIVE PLAYER INFORMATION, VENDORS WITH HEIGHTENED SECURITY ACCESS OR INFORMATION, AND JUNKET ENTERPRISES shall be required to be licensed as an ancillary casino vendor enterprise and shall comply with the standards for casino vendor license applicants. THE COMMISSION MAY ALSO REQUIRE ANY VENDOR REGULARLY CONDUCTING OVER TWO HUNDRED FIFTY THOUSAND DOLLARS OF BUSINESS WITH A GAMING LICENSEE OR APPLICANT WITHIN A TWELVE-MONTH PERIOD OR ONE HUNDRED THOUSAND DOLLARS OF BUSINESS WITHIN A THREE-MONTH PERIOD TO BE LICENSED AS AN ANCILLARY GAMING VENDOR. § 10. Subdivision 4 of section 1326 of the racing, pari-mutuel wager- ing and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: 4. Each casino vendor enterprise required to be licensed pursuant to subdivision one of this section, as well as its owners; management and supervisory personnel[; and employees if such employees have responsi- bility for services to a gaming facility applicant or licensee,] must qualify under the standards, except residency, established for quali- fication of a casino key employee under this article. EMPLOYEES OF SUCH VENDORS THAT HAVE RESPONSIBILITY FOR SERVICES TO A GAMING FACILITY APPLICANT OR LICENSEE MUST QUALIFY UNDER THE STANDARDS ESTABLISHED FOR QUALIFICATION OF A GAMING EMPLOYEE REGISTRATION UNDER THIS ARTICLE. EACH ANCILLARY CASINO VENDOR ENTERPRISE REQUIRED TO BE LICENSED PURSU- ANT TO SUBDIVISION THREE OF THIS SECTION, AS WELL AS ITS OWNERS; MANAGE- MENT; SUPERVISORY PERSONNEL AND EMPLOYEES THAT HAVE RESPONSIBILITY FOR SERVICES TO A GAMING FACILITY APPLICANT OR LICENSEE MUST QUALIFY UNDER THE STANDARDS ESTABLISHED FOR QUALIFICATION OF A GAMING EMPLOYEE REGIS- TRATION UNDER THIS ARTICLE. § 11. Subdivision 5 of section 1326 of the racing, pari-mutuel wager- ing and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: 5. Any vendor that offers goods or services to a gaming facility applicant or licensee IN EXCESS OF TWENTY-FIVE THOUSAND DOLLARS WITHIN A TWELVE-MONTH PERIOD that is not included in subdivision one [or], two OR THREE of this section including, but not limited to site contractors and subcontractors, shopkeepers located within the facility, gaming schools that possess slot machines for the purpose of instruction, [and any non-supervisory employee of a junket enterprise licensed under subdivi- sion three of this section] VENDING MACHINE PROVIDERS, LINEN SUPPLIERS, GARBAGE HANDLERS, MAINTENANCE COMPANIES, LIMOUSINE SERVICES, AND FOOD PURVEYORS, shall be required to register with the commission in accord- ance with the regulations promulgated under this article. PRIOR TO CONDUCTING BUSINESS WITH ANY VENDOR NOT INCLUDED IN SUBDIVI- SION ONE OR TWO OF THIS SECTION, WHICH IS PROVIDING BUSINESS WORTH LESS THAN THE THRESHOLDS PROVIDED IN THIS SUBDIVISION, A GAMING FACILITY APPLICANT OR LICENSEE SHALL NOTIFY THE COMMISSION OF THE INTENDED TRANS- ACTION, ALONG WITH ANY HISTORY OF TRANSACTIONS WITH SUCH VENDOR, TO ALLOW FOR VERIFICATION THAT THE LICENSING REQUIREMENTS OF THIS SECTION DO NOT APPLY. S. 1509 76 A. 2009 ALL EMPLOYEES OF A VENDOR REGISTERED PURSUANT TO THIS SECTION THAT PROVIDE SERVICES UPON THE PREMISES OF A GAMING FACILITY ARE REQUIRED TO BE REGISTERED AS AND MEET THE STANDARDS OF A NON-GAMING EMPLOYEE. Notwithstanding the provisions aforementioned, the executive director may, consistent with the public interest and the policies of this arti- cle, direct that individual vendors registered pursuant to this subdivi- sion be required to apply for either a casino vendor enterprise license pursuant to subdivision one of this section, or an ancillary vendor industry enterprise license pursuant to subdivision three of this section, as directed by the commission. The executive director may also order that any enterprise licensed as or required to be licensed as an ancillary casino vendor enterprise pursuant to subdivision three of this section be required to apply for a casino vendor enterprise license pursuant to subdivision one of this section. The executive director may also, in his or her discretion, order that an independent software contractor not otherwise required to be registered be either registered as a vendor pursuant to this subdivision or be licensed pursuant to either subdivision one or three of this section. [Each ancillary casino vendor enterprise required to be licensed pursuant to subdivision three of this section, as well as its owners, management and supervisory personnel, and employees if such employees have responsibility for services to a gaming facility applicant or licensee, shall establish their good character, honesty and integrity by clear and convincing evidence and shall provide such financial informa- tion as may be required by the commission. Any enterprise required to be licensed as an ancillary casino vendor enterprise pursuant to this section shall be permitted to transact business with a gaming facility licensee upon filing of the appropriate vendor registration form and application for such licensure.] § 12. Subdivision 6 of section 1326 of the racing, pari-mutuel wager- ing and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: 6. Any applicant, licensee or qualifier of a casino vendor enterprise license or of an ancillary casino vendor enterprise license under subdi- vision one of this section, and any vendor registrant under subdivision five of this section shall be disqualified in accordance with the crite- ria contained in section [one thousand three] THIRTEEN hundred eighteen of this article, except that no such [ancillary casino vendor enterprise license under subdivision three of this section or vendor registration under subdivision five of this section] APPLICANT, LICENSEE OR QUALIFIER shall be denied or revoked if such [vendor registrant] APPLICANT, LICEN- SEE OR QUALIFIER can affirmatively demonstrate rehabilitation pursuant to article twenty-three-A of the correction law. § 13. Section 1326 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 11 to read as follows: 11. NOTWITHSTANDING THE PRECEDING SUBDIVISIONS, THE EXECUTIVE DIRECTOR MAY, IN HIS OR HER DISCRETION, WAIVE ANY OF THE REQUIREMENTS OF THIS SECTION WHEN A GAMING FACILITY APPLICANT OR LICENSEE CAN DEMONSTRATE THAT THE BUSINESS RELATIONSHIP WITH ANY INDIVIDUAL VENDOR WILL BE LIMIT- ED IN SCOPE AND DURATION AND THAT THE PUBLIC INTEREST AND THE POLICIES OF THIS ARTICLE WOULD NOT BE DIMINISHED BY SUCH WAIVER. IN REQUESTING SUCH WAIVER, THE GAMING FACILITY APPLICANT OR LICENSEE SHALL PROVIDE ANY AND ALL INFORMATION NEEDED TO MAKE SUCH DETERMINATION AND ANY AND ALL INFORMATION NEEDED AS A CONDITION OF SUCH WAIVER. THE EXECUTIVE DIRECTOR MAY REVOKE ANY SUCH WAIVER AT ANY TIME UPON A DETERMINATION THAT THE CIRCUMSTANCES UPON WHICH SUCH WAIVER WAS GRANTED HAVE CHANGED. S. 1509 77 A. 2009 § 14. This act shall take effect immediately. PART LL 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 EIGHTEEN-TWO THOUSAND NINETEEN 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 NINETEEN-TWO THOUSAND TWENTY SCHOOL YEAR: (A) FOR PURPOSES OF THE EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWEN- TY-FIVE OF THIS CHAPTER, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT EXCEED THE TAX SAVINGS FOR THE PRIOR YEAR, AND (B) FOR PURPOSES OF THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE TAX SAVINGS APPLICABLE TO ANY PORTION 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. The tax savings attributable to the basic and enhanced exemptions shall be calculated separately. It shall be the responsibil- ity of the commissioner to calculate tax savings limitations for purposes of this subdivision. § 2. Subparagraph (G) 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: (G) "STAR tax savings" means the tax savings attributable to the STAR exemption within a portion of a school district, as determined by the commissioner pursuant to subdivision two of section thirteen hundred six-a of the real property tax law FOR PURPOSES OF THE CREDIT AUTHORIZED BY THIS SUBSECTION. § 3. This act shall take effect immediately. PART MM Section 1. Section 1405-B of the tax law is amended by adding a new subdivision (c) to read as follows: (C) THE INFORMATION CONTAINED WITHIN INFORMATION RETURNS FILED UNDER SUBDIVISION (B) OF THIS SECTION MAY BE PROVIDED BY THE COMMISSIONER TO LOCAL ASSESSORS FOR USE IN REAL PROPERTY TAX ADMINISTRATION, AND SUCH INFORMATION SHALL NOT BE SUBJECT TO THE SECRECY PROVISIONS SET FORTH IN SECTION FOURTEEN HUNDRED EIGHTEEN OF THIS CHAPTER, PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL NOT DISCLOSE SOCIAL SECURITY NUMBERS OR EMPLOYER IDENTIFICATION NUMBERS. § 2. This act shall take effect January 1, 2020. PART NN S. 1509 78 A. 2009 Section 1. Paragraph 3 of subsection (e-1) of section 606 of the tax law, as added by section 2 of part K of chapter 59 of the laws of 2014, is amended as follows: (3) Determination of credit. For taxable years after two thousand thirteen [and prior to two thousand sixteen], the amount of the credit allowable under this subsection shall be determined as follows: If household gross income Excess real property The credit amount is for the taxable year is: taxes are the excess the following of real property tax percentage of excess equivalent or the property taxes: excess of qualifying real property taxes over the following percentage of household gross income: Less than $100,000 4 4.5 $100,000 to less than 5 3.0 $150,000 $150,000 to less than 6 1.5 $200,000 Notwithstanding the foregoing provisions, the maximum credit deter- mined under this subparagraph may not exceed five hundred dollars. § 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2016; provided, however, that the amendments to subsection (e-1) of section 606 of the tax law made by section one of this act shall not affect the repeal of such subsection and shall be deemed to be repealed therewith. PART OO 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. The commissioner, by regulation, shall provide that such registra- tion 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 a copy of all current manufactured home park rules and regulations. THE REPORTING OF SUCH INFORMATION TO THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBPARAGRAPH (B) OF PARAGRAPH SIX OF SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW SHALL BE DEEMED TO SATISFY THE REQUIREMENTS OF THIS PARAGRAPH. 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 S. 1509 79 A. 2009 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. Subparagraph (B) of paragraph 6 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) (I) In the case of property consisting of a mobile home that is described in paragraph (1) of subdivision two of section four hundred twenty-five of the real property tax law, the amount of the credit allowable with respect to such mobile home shall be equal to the basic STAR tax savings for the school district portion, or the enhanced STAR tax savings for the school district portion, whichever is applicable, that would be applied to a separately assessed parcel in the school district portion with a taxable assessed value equal to twenty thousand dollars multiplied by the latest state equalization rate or special equalization rate for the assessing unit in which the mobile home is located. Provided, however, that if the commissioner is in possession of information, including but not limited to assessment records, that demonstrates to the commissioner's satisfaction that the taxpayer's mobile home is worth more than twenty thousand dollars, or if the taxpayer provides the commissioner with such information, the taxpayer's credit shall be increased accordingly, but in no case shall the credit exceed the basic STAR tax savings or enhanced STAR tax savings, whichev- er is applicable, for the school district portion. (II) THE COMMISSIONER MAY IMPLEMENT AN ELECTRONIC SYSTEM FOR THE REPORTING OF INFORMATION BY OWNERS AND OPERATORS OF MANUFACTURED HOME PARKS, AS DEFINED BY SECTION TWO HUNDRED THIRTY-THREE OF THE REAL PROP- ERTY LAW. UPON THE IMPLEMENTATION OF SUCH A SYSTEM, EACH SUCH OWNER AND OPERATOR SHALL FILE QUARTERLY ELECTRONIC STATEMENTS WITH THE COMMISSION- ER NO LATER THAN TWENTY-ONE DAYS AFTER THE END OF EACH CALENDAR QUARTER. SUCH STATEMENT SHALL REQUIRE REPORTING OF NAMES OF ALL PERSONS OWNING AN INTEREST IN THE PARK, THE SERVICES PROVIDED BY THE PARK OWNER TO THE TENANTS, THE NAMES AND ADDRESSES OF ALL TENANTS OF THE PARK, WHETHER THE TENANT LEASES OR OWNS THE HOME, AND SUCH ADDITIONAL INFORMATION AS THE COMMISSIONER MAY DEEM NECESSARY FOR THE PROPER ADMINISTRATION OF THE STAR EXEMPTION ESTABLISHED PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW AND THE STAR CREDIT AND ANY OTHER PROPERTY TAX-BASED CREDIT ESTABLISHED PURSUANT TO THIS SECTION. IN THE CASE OF A REGISTRATION STATEMENT FOR THE FIRST CALENDAR QUARTER OF A YEAR, SUCH S. 1509 80 A. 2009 STATEMENT SHALL ALSO INCLUDE A COPY OF ALL CURRENT MANUFACTURED HOME PARK RULES AND REGULATIONS. THE COMMISSIONER SHALL PROVIDE THE COMMIS- SIONER OF HOUSING AND COMMUNITY RENEWAL WITH THE INFORMATION CONTAINED IN EACH QUARTERLY REPORT NO LATER THAN THIRTY DAYS AFTER THE RECEIPT THEREOF. § 3. This act shall take effect immediately. PART PP Section 1. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by section 2 of part B of chapter 59 of the laws of 2018, 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 nineteen, the application form shall indicate that all owners of the property and any owners' spouses residing on the premises must have their income eligi- bility verified annually by the department and must furnish their taxpayer identification numbers in order to facilitate matching with records of the department. The income eligibility of such persons shall be verified annually by the department, and the assessor shall not request income documentation from them. All applicants 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) EFFECTIVE WITH FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOU- SAND TWENTY, THE COMMISSIONER SHALL ALSO ANNUALLY VERIFY THE ELIGIBILITY OF SUCH PERSONS FOR THE ENHANCED EXEMPTION ON THE BASIS OF AGE AND RESI- DENCY AS WELL AS INCOME. (C) Where the commissioner finds that the enhanced exemption should be replaced with a basic exemption because [the income limitation applica- ble to the enhanced exemption has been exceeded] THE PROPERTY IS ONLY ELIGIBLE FOR A BASIC EXEMPTION, he or she shall provide the property owners with notice and an opportunity to submit to the commissioner 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] THE PROPERTY IS NOT ELIGIBLE FOR EITHER EXEMPTION, he or she shall provide the property owners with notice and an opportunity to submit to the commissioner 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 commissioner 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)] (D) 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 S. 1509 81 A. 2009 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 department's final determination, the taxpayer may appeal that determi- nation to the state board of real property tax services in a form and manner to be prescribed by the commissioner. Such appeal shall be filed within forty-five days from the issuance of the department's final determination. If dissatisfied with the state board's determination, the taxpayer may seek judicial review thereof pursuant to article seventy- eight of the civil practice law and rules. The taxpayer shall otherwise have no right to challenge such final determination in a court action, administrative proceeding or any other form of legal recourse against the commissioner, the department, 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. § 2. Paragraph (c) of subdivision 13 of section 425 of the real prop- erty tax law, as amended by section 1 of part J of chapter 57 of the laws of 2013, is amended, and a new paragraph (f) is added to read as follows: (c) Additional consequences. A penalty tax may be imposed pursuant to this subdivision whether or not the improper exemption has been revoked in the manner provided by this section. In addition, a person or persons who are found to have made a material misstatement shall be disqualified from further exemption pursuant to this section, AND FROM THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, for a period of [five years if such misstatement appears on an application filed prior to October first, two thousand thirteen, and] six years [if such misstatement appears on an application filed there- after]. In addition, such person or persons may be subject to prose- cution pursuant to the penal law. (F) ASSESSOR NOTIFICATION. THE ASSESSOR SHALL INFORM THE COMMISSIONER WHENEVER A PERSON OR PERSONS IS FOUND TO HAVE MADE A MATERIAL MISSTATE- MENT ON AN APPLICATION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION. § 3. Paragraph (13) of subsection (eee) of section 606 of the tax law is amended by adding a new subparagraph (E) to read as follows: (E) A TAXPAYER WHO IS FOUND TO HAVE MADE A MATERIAL MISSTATEMENT ON AN APPLICATION FOR THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE DISQUALI- FIED FROM RECEIVING SUCH CREDIT FOR SIX YEARS. AS USED HEREIN, THE TERM "MATERIAL MISSTATEMENT" SHALL HAVE THE SAME MEANING AS SET FORTH IN PARAGRAPH (A) OF SUBDIVISION THIRTEEN OF SECTION FOUR HUNDRED TWENTY- FIVE OF THE REAL PROPERTY TAX LAW. § 4. Subparagraph (E) of paragraph (10) of subsection (eee) of section 606 of the tax law, as amended by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (E) If the commissioner determines after issuing an advance payment that it was issued in an excessive amount or to an ineligible or incor- rect party, the commissioner shall be empowered to utilize any of the procedures for collection, levy and lien of personal income tax set forth in this article, any other relevant procedures referenced within the provisions of this article, and any other law as may be applicable, to recoup the improperly issued amount; PROVIDED THAT IN THE EVENT SUCH PARTY WAS DETERMINED TO BE INELIGIBLE ON THE BASIS THAT HIS OR HER PRIMARY RESIDENCE RECEIVED THE STAR EXEMPTION IN THE ASSOCIATED FISCAL YEAR, THE IMPROPERLY ISSUED CREDIT AMOUNT SHALL BE DEEMED A CLERICAL ERROR AND SHALL BE PAID UPON NOTICE AND DEMAND WITHOUT THE ISSUANCE OF A S. 1509 82 A. 2009 NOTICE OF DEFICIENCY AND SHALL BE ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS TAXES. § 5. This act shall take effect immediately. PART QQ Section 1. Section 425 of the real property tax law is amended by adding a new subdivision 17 to read as follows: 17. CERTAIN DISCLOSURES AUTHORIZED. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN THE COMMISSIONER HAS DETERMINED THAT THE OWNER OR OWNERS OF A PARCEL OF REAL PROPERTY ARE INELIGIBLE FOR EITHER THE STAR EXEMPTION AUTHORIZED BY THIS SECTION OR THE STAR CREDIT AUTHOR- IZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE COMMISSIONER MAY DISCLOSE THE NAMES OF SUCH OWNER OR OWNERS TO THE ASSESSOR OF THE ASSESSING UNIT IN WHICH THE PROPERTY IS LOCATED. IN ADDITION: (I) WHERE THE COMMISSIONER HAS FOUND THAT THE STAR EXEMPTION OR CREDIT COULD NOT BE GRANTED BECAUSE THE INCOME OF THE OWNER OR OWNERS IS ABOVE THE APPLICABLE LIMIT, THE COMMISSIONER MAY SO ADVISE THE ASSESSOR, BUT SHALL NOT DISCLOSE THE AMOUNT OF INCOME OF ANY SUCH OWNER OR OWNERS. (II) WHERE THE COMMISSIONER HAS FOUND THAT THE STAR EXEMPTION OR CRED- IT COULD NOT BE GRANTED BECAUSE THE PROPERTY IS NOT THE PRIMARY RESI- DENCE OF ONE OR MORE OF THE OWNERS THEREOF, OR THAT THE OWNER'S SPOUSE IS RECEIVING A STAR EXEMPTION OR STAR CREDIT ON ANOTHER RESIDENCE OR A COMPARABLE BENEFIT ON A RESIDENCE IN ANOTHER STATE, THE COMMISSIONER MAY SO ADVISE THE ASSESSOR. THE COMMISSIONER MAY FURTHER ADVISE THE ASSESSOR OF THE FACTS SUPPORTING THAT DETERMINATION, INCLUDING THE LOCATION OR LOCATIONS OF THE PROPERTY OWNER'S OTHER RESIDENCE OR RESIDENCES, IF ANY. (III) WHERE THE COMMISSIONER HAS FOUND THAT THE ENHANCED STAR EXEMPTION OR CREDIT COULD NOT BE GRANTED BECAUSE THE OWNER OR OWNERS DO NOT MEET THE APPLICABLE AGE REQUIREMENT, THE COMMISSIONER MAY SO ADVISE THE ASSESSOR, AND MAY FURTHER ADVISE THE ASSESSOR OF THEIR BIRTH DATES IF KNOWN. (IV) WHERE THE COMMISSIONER HAS FOUND THAT THE ENHANCED STAR EXEMPTION OR CREDIT COULD NOT BE GRANTED BECAUSE THE OWNER OR OWNERS FAILED TO ENROLL IN THE INCOME VERIFICATION PROGRAM OR FAILED TO SUBMIT THE INCOME WORKSHEET REQUIRED THEREUNDER, THE COMMISSIONER MAY SO ADVISE THE ASSES- SOR. (B) INFORMATION DISCLOSED TO AN ASSESSOR PURSUANT TO THIS SUBDIVISION SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. IT SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW. § 2. Section 467 of the real property tax law is amended by adding a new subdivision 11 to read as follows: 11. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, UPON THE REQUEST OF AN ASSESSOR, THE COMMISSIONER MAY DISCLOSE TO THE ASSESSOR THE NAMES AND ADDRESSES OF THE OWNERS OF PROPERTY IN THAT ASSESSOR'S ASSESSING UNIT WHO ARE RECEIVING THE ENHANCED STAR EXEMPTION OR ENHANCED STAR CREDIT AND WHOSE FEDERAL ADJUSTED GROSS INCOME IS LESS THAN THE UPPERMOST AMOUNT SPECIFIED BY SUBPARAGRAPH THREE OF PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION (REPRESENTED THEREIN AS M + $8,400). SUCH AMOUNT SHALL BE DETERMINED WITHOUT REGARD TO ANY LOCAL OPTIONS THAT THE MUNICIPAL CORPORATION MAY OR MAY NOT HAVE EXERCISED IN RELATION TO INCREASING OR DECREASING THE MAXIMUM INCOME ELIGIBILITY LEVEL AUTHORIZED BY THIS SECTION, PROVIDED THAT THE AMOUNT SO DETERMINED FOR A CITY WITH A POPULATION OF ONE MILLION OR MORE SHALL TAKE INTO ACCOUNT THE DISTINCT S. 1509 83 A. 2009 MAXIMUM INCOME ELIGIBILITY LEVEL ESTABLISHED FOR SUCH CITY BY PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION. IN NO CASE SHALL THE COMMIS- SIONER DISCLOSE TO AN ASSESSOR THE AMOUNT OF AN OWNER'S FEDERAL ADJUSTED GROSS INCOME. (B) THE ASSESSOR MAY USE THE INFORMATION CONTAINED IN SUCH A REPORT TO CONTACT THOSE OWNERS WHO ARE NOT ALREADY RECEIVING THE EXEMPTION AUTHOR- IZED BY THIS SECTION AND TO SUGGEST THAT THEY CONSIDER APPLYING FOR IT. PROVIDED, HOWEVER, THAT NOTHING CONTAINED HEREIN SHALL BE CONSTRUED AS ENABLING ANY PERSON OR PERSONS TO QUALIFY FOR THE EXEMPTION AUTHORIZED BY THIS SECTION ON THE BASIS OF THEIR FEDERAL ADJUSTED GROSS INCOME, RATHER THAN ON THE BASIS OF THEIR INCOME AS DETERMINED PURSUANT TO THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION. (C) INFORMATION DISCLOSED TO AN ASSESSOR PURSUANT TO THIS SUBDIVISION SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. IT SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW. § 3. Section 1532 of the real property tax law is amended by adding a new subdivision 5 to read as follows: 5. INFORMATION REGARDING DECEDENTS PROVIDED BY THE COMMISSIONER TO A COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES PURSUANT TO SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-ONE OF THE TAX LAW SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. THE CONTENTS OF THE REPORT MAY BE SHARED WITH THE ASSESSOR AND TAX COLLECTING OFFICER OF THE MUNIC- IPAL CORPORATION IN WHICH THE DECEDENT'S FORMER RESIDENCE IS LOCATED, AND WITH THE ENFORCING OFFICER IF SUCH RESIDENCE IS SUBJECT TO DELIN- QUENT TAXES. THE INFORMATION SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW. § 4. Subsection (c) of section 651 of the tax law, as amended by chap- ter 783 of the laws of 1962, is amended to read as follows: (c) Decedents. The return for any deceased individual shall be made and filed by his executor, administrator, or other person charged with his property. If a final return of a decedent is for a fractional part of a year, the due date of such return shall be the fifteenth day of the fourth month following the close of the twelve-month period which began with the first day of such fractional part of the year. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A RETURN HAS BEEN FILED FOR A DECEDENT, THE COMMISSIONER MAY DISCLOSE THE DECEDENT'S NAME, ADDRESS, AND THE DATE OF DEATH TO THE DIRECTOR OF REAL PROPERTY TAX SERVICES OF THE COUNTY IN WHICH THE ADDRESS REPORTED ON SUCH RETURN IS LOCATED. § 5. This act shall take effect immediately. PART RR Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real property tax law, as added by section 1 of part FF of chapter 57 of the laws of 2010, is amended to read as follows: (b-1) Income. For final assessment rolls to be used for the levy of taxes for the two thousand eleven-two thousand twelve THROUGH TWO THOU- SAND EIGHTEEN-TWO THOUSAND NINETEEN school [year and thereafter] YEARS, the parcel's affiliated income may be no greater than five hundred thou- sand dollars, as determined by the commissioner [of taxation and finance] pursuant to SUBDIVISION FOURTEEN OF THIS SECTION OR section one hundred seventy-one-u of the tax law, in order to be eligible for the basic exemption authorized by this section. BEGINNING WITH THE TWO THOU- SAND NINETEEN-TWO THOUSAND TWENTY SCHOOL YEAR, FOR PURPOSES OF THE S. 1509 84 A. 2009 EXEMPTION AUTHORIZED BY THIS SECTION, THE PARCEL'S AFFILIATED INCOME MAY BE NO GREATER THAN TWO HUNDRED FIFTY THOUSAND DOLLARS, AS SO DETERMINED. 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' spouses resid- ing primarily thereon. For exemptions on final assessment rolls to be used for the levy of taxes for the two thousand eleven-two thousand 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. § 2. Subparagraph (A) of paragraph 3 of subsection (eee) of section 606 of the tax law, as added by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (A) Beginning with taxable years after two thousand fifteen, a basic STAR credit shall be available to a qualified taxpayer if the affiliated income of the parcel that serves as the taxpayer's primary residence is less than or equal to five hundred thousand dollars. THE INCOME LIMIT ESTABLISHED FOR THE BASIC STAR EXEMPTION BY PARAGRAPH (B-1) OF SUBDIVI- SION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW SHALL NOT BE TAKEN INTO ACCOUNT WHEN DETERMINING ELIGIBILITY FOR THE BASIC STAR CREDIT. § 3. This act shall take effect immediately. PART SS Section 1. Subdivision 6 of section 1306-a of the real property tax law, as amended by section 3 of part TT of chapter 59 of the laws of 2017, is amended to read as follows: 6. When the commissioner determines, at least twenty days prior to the levy of school district taxes, that an advance credit of the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law will be provided to the owners of a parcel in that school district, he or she shall so notify the assessor, the county director of real property tax services, and the authorities of the school district, who shall cause a statement to be placed on the tax bill for the parcel in substantially the following form: "An estimated STAR check HAS BEEN OR will be mailed to you [upon issuance] by the NYS Tax Department. Any overpayment or underpayment can be reconciled on your next tax return or STAR credit check." Notwithstanding any provision of law to the contrary, in the event that the parcel in question had been granted a STAR exemption on the assessment roll upon which school district taxes are to be levied, such exemption shall be deemed null and void, shall be removed from the assessment roll, and shall be disregarded when the parcel's tax liabil- ity is determined. The assessor or other local official or officials having custody and control of the data file used to generate school district tax rolls and tax bills shall be authorized and directed to change such file as necessary to enable the school district authorities to discharge the duties imposed upon them by this subdivision. § 2. This act shall take effect immediately. PART TT S. 1509 85 A. 2009 Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real property tax law, as added by section 1 of part D of chapter 60 of the laws of 2016, is amended to read as follows: (a-2) Notwithstanding any provision of law to the contrary, where [a renewal] AN application for the "enhanced" STAR exemption authorized by subdivision four of this section has not been filed on or before the taxable status date, and the owner believes that good cause existed for the failure to file the [renewal] application by that date, the owner may, no later than the last day for paying school taxes without incur- ring interest or penalty, submit a written request to the commissioner asking him or her to extend the filing deadline and grant the exemption. Such request shall contain an explanation of why the deadline was missed, and shall be accompanied by [a renewal] AN application, reflect- ing the facts and circumstances as they existed on the taxable status date. After consulting with the assessor, the commissioner may extend the filing deadline and grant the exemption if the commissioner is satisfied that (i) good cause existed for the failure to file the [renewal] application by the taxable status date, and that (ii) the applicant is otherwise entitled to the exemption. The commissioner shall mail notice of his or her determination to such owner and the assessor. If the determination states that the commissioner has granted the exemption, the assessor shall thereupon be authorized and directed to correct the assessment roll accordingly, or, if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. If the correction is not made before school taxes are levied, the [failure to take the exemption into account in the computation of the tax shall be deemed a "clerical error" for purposes of title three of article five of this chapter, and shall be corrected accordingly] SCHOOL DISTRICT AUTHORITIES SHALL BE AUTHORIZED AND DIRECTED TO TAKE ACCOUNT OF THE FACT THAT THE COMMISSIONER HAS GRANTED THE EXEMPTION BY CORRECTING THE APPLICANT'S TAX BILL AND/OR ISSUING A REFUND ACCORDINGLY. § 2. Paragraph (d) of subdivision 2 of section 496 of the real proper- ty tax law, as added by section 3 of part A of chapter 60 of the laws of 2016, is amended to read as follows: (d) If the applicant is renouncing a STAR exemption in order to quali- fy for the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law, and no other exemptions are being renounced on the same application, OR IF THE APPLICANT IS RENOUNC- ING A STAR EXEMPTION BEFORE SCHOOL TAXES HAVE BEEN LEVIED ON THE ASSESS- MENT ROLL UPON WHICH THAT EXEMPTION APPEARS, no processing fee shall be applicable. § 3. Paragraph (a) of subdivision 2 of section 496 of the real proper- ty tax law, as amended by section 3 of part A of chapter 60 of the laws of 2016, is amended to read as follows: (a) For each assessment roll on which the renounced exemption appears, the assessed value that was exempted shall be multiplied by the tax rate or rates that were applied to that assessment roll, OR IN THE CASE OF A RENOUNCED STAR EXEMPTION, THE TAX SAVINGS CALCULATED PURSUANT TO SUBDI- VISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER. Interest shall then be added to each such product at the rate prescribed by section nine hundred twenty-four-a of this chapter or such other law as may be applicable for each month or portion thereon since the levy of taxes upon such assessment roll. S. 1509 86 A. 2009 § 4. Paragraph 5 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: (5) Disqualification. A taxpayer shall not qualify for the credit authorized by this subsection if the parcel that serves as the taxpay- er's primary residence received the STAR exemption on the assessment roll upon which school district taxes for the associated fiscal year [where] WERE levied. Provided, however, that the taxpayer may remove this disqualification by renouncing the exemption [and making any required payments] by December thirty-first of the taxable year, as provided by subdivision sixteen of section four hundred twenty-five of the real property tax law, AND MAKING ANY REQUIRED PAYMENTS WITHIN THE TIME FRAME PRESCRIBED BY SECTION FOUR HUNDRED NINETY-SIX OF THE REAL PROPERTY TAX LAW. § 5. This act shall take effect immediately. PART UU Section 1. The article heading of article 13-F of the public health law, as amended by chapter 448 of the laws of 2012, is amended to read as follows: REGULATION OF TOBACCO PRODUCTS, VAPOR PRODUCTS, ELECTRONIC CIGARETTES, HERBAL CIGARETTES AND SMOKING PARAPHERNALIA; DISTRIBUTION TO [MINORS] PERSONS UNDER THE AGE OF TWENTY-ONE § 2. Subdivisions 1 and 4 of section 1399-aa of the public health law, subdivision 1 as amended by chapter 13 of the laws of 2003, and subdivi- sion 4 as added by chapter 799 of the laws of 1992, are amended and six new subdivisions 14, 15, 16, 17, 18 and 19 are added to read as follows: 1. "Enforcement officer" means the enforcement officer designated pursuant to article thirteen-E of this chapter to enforce such article and hold hearings pursuant thereto; provided that in a city with a popu- lation of more than one million it shall also mean an officer or employ- ee or any agency of such city that is authorized to enforce any local law of such city related to the regulation of the sale of tobacco products to [minors] PERSONS UNDER THE AGE OF TWENTY-ONE. 4. "Private club" means an organization with no more than an insignif- icant portion of its membership comprised of people under the age of [eighteen] TWENTY-ONE years that regularly receives dues and/or payments from its members for the use of space, facilities and services. 14. "PRICE REDUCTION INSTRUMENT" MEANS ANY COUPON, VOUCHER, REBATE, CARD, PAPER, NOTE, FORM, STATEMENT, TICKET, IMAGE, OR OTHER ISSUE, WHETHER IN PAPER, DIGITAL, OR ANY OTHER FORM, USED FOR COMMERCIAL PURPOSES TO RECEIVE AN ARTICLE, PRODUCT, SERVICE, OR ACCOMMODATION WITH- OUT CHARGE OR AT A DISCOUNTED PRICE. 15. "DEALER" MEANS A DEALER, AS DEFINED IN SECTION FOUR HUNDRED SEVEN- TY OF THE TAX LAW OR A VAPOR PRODUCTS DEALER AS DEFINED IN SECTION ELEV- EN HUNDRED EIGHTY OF THE TAX LAW. 16. "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO A FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR, ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL S. 1509 87 A. 2009 DEVICE, OR MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF ARTI- CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW. 17. "TOBACCO AND VAPOR PRODUCTS MENU" MEANS A BOOKLET, PAMPHLET, OR OTHER LISTING OF TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, AND ELECTRONIC CIGARETTES OFFERED FOR SALE BY THE DEALER AND THE PRICE OF SUCH PRODUCTS. THE TOBACCO AND VAPOR PRODUCTS MENU MAY CONTAIN PICTURES OF AND ADVERTISEMENTS FOR TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS AND ELECTRONIC CIGARETTES. 18. "MENU COVER PAGE" MEANS THE FRONT COVER OF A TOBACCO AND VAPOR PRODUCTS MENU OR, IF THERE IS NO FRONT COVER, THE FIRST PAGE OF A TOBAC- CO AND VAPOR PRODUCTS MENU. 19. "CHARACTERIZING FLAVOR" MEANS A DISTINGUISHABLE TASTE OR AROMA, OTHER THAN THE TASTE OR AROMA OF TOBACCO OR MENTHOL, IMPARTED EITHER PRIOR TO OR DURING CONSUMPTION OF A TOBACCO PRODUCT, ELECTRONIC CIGA- RETTES AND VAPOR PRODUCTS OR COMPONENT THEREOF, INCLUDING, BUT NOT LIMITED TO, TASTES OR AROMAS RELATING TO ANY FRUIT, CHOCOLATE, VANILLA, HONEY, CANDY, COCOA, DESSERT, ALCOHOLIC BEVERAGE, HERB OR SPICE. § 3. Section 1399-bb of the public health law, as amended by chapter 508 of the laws of 2000, the section heading and subdivisions 4 and 5 as amended by chapter 4 of the laws of 2018 and subdivision 2 as amended by chapter 13 of the laws of 2003, is amended to read as follows: § 1399-bb. Distribution of tobacco products, VAPOR PRODUCTS, electron- ic cigarettes or herbal cigarettes without charge. 1. No person engaged in the business of selling or otherwise distributing tobacco products, VAPOR PRODUCTS, ELECTRONIC CIGARETTES or herbal cigarettes for commer- cial purposes, or any agent or employee of such person, shall knowingly, in furtherance of such business: (a) distribute without charge any tobacco products or herbal ciga- rettes to any individual, provided that the distribution of a package containing tobacco products or herbal cigarettes in violation of this subdivision shall constitute a single violation without regard to the number of items in the package; or (b) distribute [coupons] PRICE REDUCTION INSTRUMENTS which are redeem- able for tobacco products [or], herbal cigarettes, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES to any individual, provided that this subdivision shall not apply to coupons contained in newspapers, magazines or other types of publications, coupons obtained through the purchase of tobacco products [or], herbal cigarettes, VAPOR PRODUCTS, OR ELECTRONIC CIGA- RETTES or obtained at locations which sell tobacco products [or], herbal cigarettes, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES provided that such distribution is confined to a designated area or to coupons sent through the mail. 1-A. NO PERSON ENGAGED IN THE BUSINESS OF SELLING OR OTHERWISE DISTRIBUTING TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES FOR COMMERCIAL PURPOSES, OR ANY AGENT OR EMPLOYEE OF SUCH PERSON, SHALL KNOWINGLY, IN FURTHERANCE OF SUCH BUSINESS: (A) HONOR OR ACCEPT A PRICE REDUCTION INSTRUMENT IN ANY TRANSACTION RELATED TO THE SALE OF TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUMER; (B) SELL OR OFFER FOR SALE TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUMER THROUGH ANY MULTI-PACK- AGE DISCOUNT OR OTHERWISE PROVIDE TO A CONSUMER ANY TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, ELECTRONIC CIGARETTES FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR THE PURCHASE OF ANY OTHER TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES BY THE CONSUMER; S. 1509 88 A. 2009 (C) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE ANY PRODUCT OTHER THAN TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGA- RETTES TO A CONSUMER FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR THE PURCHASE OF TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES BY THE CONSUMER; OR (D) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUM- ER FOR LESS THAN THE LISTED PRICE. 2. The prohibitions contained in subdivision one of this section shall not apply to the following locations: (a) private social functions when seating arrangements are under the control of the sponsor of the function and not the owner, operator, manager or person in charge of such indoor area; (b) conventions and trade shows; provided that the distribution is confined to designated areas generally accessible only to persons over the age of [eighteen] TWENTY-ONE; (c) events sponsored by tobacco [or], herbal cigarette, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTE manufacturers provided that the distribution is confined to designated areas generally accessible only to persons over the age of [eighteen] TWENTY-ONE; (d) bars as defined in subdivision one of section thirteen hundred ninety-nine-n of this chapter; (e) tobacco businesses as defined in subdivision eight of section thirteen hundred ninety-nine-aa of this article; (f) factories as defined in subdivision nine of section thirteen hundred ninety-nine-aa of this article and construction sites; provided that the distribution is confined to designated areas generally accessi- ble only to persons over the age of [eighteen] TWENTY-ONE. 3. No person shall distribute tobacco products [or], herbal cigarettes, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES at the locations set forth in paragraphs (b), (c) and (f) of subdivision two of this section unless such person gives five days written notice to the enforcement officer. 4. No person engaged in the business of selling or otherwise distrib- uting VAPOR PRODUCTS OR electronic cigarettes for commercial purposes, or any agent or employee of such person, shall knowingly, in furtherance of such business, distribute without charge any VAPOR PRODUCTS OR elec- tronic cigarettes to any individual under [eighteen] TWENTY-ONE years of age. 5. The distribution of tobacco products or herbal cigarettes pursuant to subdivision two of this section or the distribution without charge of VAPOR PRODUCTS OR electronic cigarettes shall be made only to an indi- vidual who demonstrates, through (A) a driver's license or [other photo- graphic] NON-DRIVER'S identification card issued by [a government entity or educational institution] THE COMMISSIONER OF MOTOR VEHICLES, THE FEDERAL GOVERNMENT, ANY UNITED STATES TERRITORY, COMMONWEALTH OR POSSESSION, THE DISTRICT OF COLUMBIA, A STATE GOVERNMENT WITHIN THE UNITED STATES OR A PROVINCIAL GOVERNMENT OF THE DOMINION OF CANADA, OR (B) A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR ANY OTHER COUNTRY, OR (C) AN IDENTIFICATION CARD ISSUED BY THE ARMED FORCES OF THE UNITED STATES, indicating that the individual is at least [eighteen] TWENTY-ONE years of age. Such identification need not be required of any individual who reasonably appears to be at least [twenty-five] THIRTY years of age; provided, however, that such appearance shall not consti- tute a defense in any proceeding alleging the sale of a tobacco product, VAPOR PRODUCT, electronic cigarette or herbal cigarette or the distrib- S. 1509 89 A. 2009 ution without charge of VAPOR PRODUCTS OR electronic cigarettes to an individual UNDER TWENTY-ONE YEARS OF AGE. § 4. The opening paragraph of section 1399-cc of the public health law, as amended by chapter 542 of the laws of 2014, is amended to read as follows: Sale of tobacco products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, ELECTRONIC CIGARETTES, shisha, rolling papers or smoking paraphernalia to [minors] PERSONS UNDER THE AGE OF TWENTY-ONE IS prohib- ited. § 5. Paragraph (e) of subdivision 1 of section 1399-cc of the public health law is REPEALED. § 6. Subdivisions 2, 3, 4 and 7 of section 1399-cc of the public health law, as amended by chapter 542 of the laws of 2014, are amended to read as follows: 2. Any person operating a place of business wherein tobacco products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electron- ic cigarettes, are sold or offered for sale is prohibited from selling such products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha, electronic cigarettes or smoking paraphernalia to individuals under [eighteen] TWENTY-ONE years of age, and shall post in a conspicu- ous place a sign upon which there shall be imprinted the following statement, "SALE OF CIGARETTES, CIGARS, CHEWING TOBACCO, POWDERED TOBAC- CO, SHISHA OR OTHER TOBACCO PRODUCTS, HERBAL CIGARETTES, [LIQUID NICO- TINE] VAPOR PRODUCTS, ELECTRONIC CIGARETTES, ROLLING PAPERS OR SMOKING PARAPHERNALIA, TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS OF AGE IS PROHIBITED BY LAW." Such sign shall be printed on a white card in red letters at least one-half inch in height. 3. Sale of tobacco products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic cigarettes in such places, other than by a vending machine, shall be made only to an individual who demonstrates, through (a) a valid driver's license or non-driver's iden- tification card issued by the commissioner of motor vehicles, the feder- al government, any United States territory, commonwealth or possession, the District of Columbia, a state government within the United States or a provincial government of the dominion of Canada, or (b) a valid pass- port issued by the United States government or any other country, or (c) an identification card issued by the armed forces of the United States, indicating that the individual is at least [eighteen] TWENTY-ONE years of age. Such identification need not be required of any individual who reasonably appears to be at least [twenty-five] THIRTY years of age, provided, however, that such appearance shall not constitute a defense in any proceeding alleging the sale of a tobacco product, herbal ciga- rettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic ciga- rettes to an individual under [eighteen] TWENTY-ONE years of age. 4. (a) Any person operating a place of business wherein tobacco products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic cigarettes are sold or offered for sale may perform a trans- action scan as a precondition for such purchases. (b) In any instance where the information deciphered by the trans- action scan fails to match the information printed on the driver's license or non-driver identification card, or if the transaction scan indicates that the information is false or fraudulent, the attempted transaction shall be denied. (c) In any proceeding pursuant to section thirteen hundred ninety- nine-ee of this article, it shall be an affirmative defense that such person had produced a driver's license or non-driver identification card S. 1509 90 A. 2009 apparently issued by a governmental entity, successfully completed that transaction scan, and that the tobacco product, herbal cigarettes or [liquid nicotine] VAPOR PRODUCTS had been sold, delivered or given to such person in reasonable reliance upon such identification and trans- action scan. In evaluating the applicability of such affirmative defense the commissioner shall take into consideration any written policy adopted and implemented by the seller to effectuate the provisions of this chapter. Use of a transaction scan shall not excuse any person operating a place of business wherein tobacco products, herbal ciga- rettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic ciga- rettes are sold, or the agent or employee of such person, from the exer- cise of reasonable diligence otherwise required by this chapter. Notwithstanding the above provisions, any such affirmative defense shall not be applicable in any civil or criminal proceeding, or in any other forum. 7. (A) No person operating a place of business wherein tobacco products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic cigarettes are sold or offered for sale shall sell, permit to be sold, offer for sale or display for sale any tobacco product, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic ciga- rettes in any manner, unless such products and cigarettes are stored for sale [(a)] (I) behind a counter in an area accessible only to the personnel of such business, or [(b)] (II) in a locked container; provided, however, such restriction shall not apply to tobacco busi- nesses, as defined in subdivision eight of section thirteen hundred ninety-nine-aa of this article, and to places to which admission is restricted to persons [eighteen] TWENTY-ONE years of age or older. (B) IN ADDITION TO THE REQUIREMENTS SET FORTH IN PARAGRAPH (A) OF THIS SUBDIVISION, NO DEALER SHALL PERMIT THE DISPLAY OF ANY TOBACCO PRODUCT, HERBAL CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC CIGARETTE IN A MANNER THAT PERMITS A CONSUMER TO VIEW ANY SUCH ITEM PRIOR TO PURCHASE. EXCEPT AS PROVIDED FOR IN PARAGRAPH (C) OF THIS SUBDIVISION IS NOT VIOLATED IF: (I) AT THE DIRECT REQUEST OF A CUSTOMER AT LEAST TWENTY-ONE YEARS OF AGE, SUCH A CUSTOMER HANDLES THE ITEM, PACKAGED OR OTHERWISE, TO INSPECT THE PRODUCT PRIOR TO PURCHASE; OR (II) SUCH ITEMS ARE TEMPORARILY VISIBLE DURING RESTOCKING, THE SALE OF SUCH ITEMS, OR THE CARRIAGE OF SUCH ITEMS INTO OR OUT OF THE PREMISES. (C) NO DEALER SHALL DISPLAY OR PERMIT THE DISPLAY OF ANY TOBACCO PROD- UCT, HERBAL CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC CIGARETTE FOR ANY LONGER THAN NECESSARY TO COMPLETE THE PURPOSES IDENTIFIED IN SUBPARA- GRAPHS (I) AND (II) OF PARAGRAPH (B) OF THIS SUBDIVISION. (D) NO DEALER SHALL STORE ANY TOBACCO AND VAPOR PRODUCTS MENU IN A LOCATION WHERE IT IS VISIBLE TO CUSTOMERS OR ACCESSIBLE TO CUSTOMERS WITHOUT THE ASSISTANCE OF THE DEALER. THE MENU SHALL ALSO CONTAIN MENU COVER PAGE THAT SHALL PREVENT THE INADVERTENT VIEWING OF PROMOTIONAL OR OTHER MATERIAL CONTAINED WITHIN THE TOBACCO AND VAPOR PRODUCTS MENU. (E) NO DEALER SHALL PROVIDE ANY TOBACCO AND VAPOR PRODUCTS MENU OR ANY TOBACCO PRODUCT, HERBAL CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC CIGA- RETTE TO ANY INDIVIDUAL WHO HAS NOT DEMONSTRATED, THROUGH IDENTIFICATION WHICH MEETS THE REQUIREMENTS OF SUBDIVISION THREE OF THIS SECTION, THAT THE INDIVIDUAL IS AT LEAST TWENTY-ONE YEARS OF AGE. SUCH IDENTIFICATION NEED NOT BE REQUIRED OF ANY INDIVIDUAL WHO REASONABLY APPEARS TO BE OVER THE AGE OF THIRTY, PROVIDED, HOWEVER, THAT SUCH APPEARANCE SHALL NOT CONSTITUTE A DEFENSE IN ANY PROCEEDING ALLEGING THE SALE OF SUCH ITEM TO AN INDIVIDUAL UNDER TWENTY-ONE YEARS OF AGE. IT SHALL BE AN AFFIRMATIVE DEFENSE TO A VIOLATION OF THIS PARAGRAPH THAT THE DEALER SUCCESSFULLY S. 1509 91 A. 2009 PERFORMED A TRANSACTION SCAN OF AN INDIVIDUAL'S IDENTIFICATION AND THAT A TOBACCO AND VAPOR PRODUCTS MENU, TOBACCO PRODUCT, HERBAL CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC CIGARETTE WAS PROVIDED TO SUCH INDIVIDUAL IN REASONABLE RELIANCE UPON SUCH IDENTIFICATION AND TRANSACTION SCAN. (F) AFTER A CUSTOMER HAS COMPLETED VIEWING A TOBACCO AND VAPOR PRODUCTS MENU, THE DEALER SHALL IMMEDIATELY RETURN THE TOBACCO AND VAPOR PRODUCTS MENU TO ITS STORAGE LOCATION. (G) UNLESS REQUIRED OTHERWISE BY REGULATION OF THE DEPARTMENT, THE MENU COVER PAGE OF THE TOBACCO AND VAPOR PRODUCTS MENU SHALL BE BLANK OR CONTAIN ONLY THE WORDS "TOBACCO AND VAPOR PRODUCTS MENU" AND SHALL NOT CONTAIN ANY ADVERTISING OR OTHER PROMOTIONAL MATERIAL. (H) THE COMMISSIONER MAY ISSUE RULES AND REGULATIONS GOVERNING THE USE OF THE TOBACCO AND VAPOR PRODUCTS MENU AND MENU COVER PAGE. (I) PARAGRAPHS (A) THROUGH (G) OF THIS SUBDIVISION SHALL NOT APPLY TO A PLACE OF BUSINESS TO WHICH ADMISSION IS RESTRICTED SOLELY TO PERSONS TWENTY-ONE YEARS OF AGE OR OLDER. (J) NOTHING HEREIN SHALL BE CONSTRUED TO RESTRICT THE AUTHORITY OF ANY COUNTY, CITY, TOWN, OR VILLAGE TO ENACT, ADOPT, PROMULGATE AND ENFORCE ADDITIONAL LOCAL LAWS, ORDINANCES, REGULATIONS OR OTHER MEASURES WHICH ARE IN ADDITION TO OR MORE STRINGENT THAN EITHER OF THE PROVISIONS OF THIS ARTICLE. § 7. Section 1399-dd of the public health law, as amended by chapter 448 of the laws of 2012, is amended to read as follows: § 1399-dd. Sale of tobacco products, herbal cigarettes, VAPOR PRODUCTS, or electronic cigarettes in vending machines. No person, firm, partnership, company or corporation shall operate a vending machine which dispenses tobacco products, herbal cigarettes, VAPOR PRODUCTS, or electronic cigarettes unless such machine is located: (a) in a bar as defined in subdivision one of section thirteen hundred ninety-nine-n of this chapter, or the bar area of a food service establishment with a valid, on-premises full liquor license; (b) in a private club; (c) in a tobacco business as defined in subdivision eight of section thirteen hundred ninety-nine-aa of this article; or (d) in a place of employment which has an insignificant portion of its regular workforce comprised of people under the age of [eighteen] TWENTY-ONE years and only in such locations that are not accessible to the general public; provided, however, that in such locations the vending machine is located in plain view and under the direct supervision and control of the person in charge of the location or his or her designated agent or employee. § 8. Section 1399-ee of the public health law, as amended by chapter 162 of the laws of 2002, is amended to read as follows: § 1399-ee. Hearings; penalties. 1. Hearings with respect to violation of this article shall be conducted in the same manner as hearings conducted under article thirteen-E of this chapter. 2. If the enforcement officer determines after a hearing that a violation of this article has occurred, he or she shall impose a civil penalty of a minimum of three hundred dollars, but not to exceed one thousand dollars for a first violation, and a minimum of five hundred dollars, but not to exceed one thousand five hundred dollars for each subsequent violation, unless a different penalty is otherwise provided in this article. The enforcement officer shall advise the [retail] deal- er that upon the accumulation of three or more points pursuant to this section the [department] COMMISSIONER of taxation and finance shall suspend the dealer's registration. If the enforcement officer determines after a hearing that a [retail] dealer was selling tobacco products, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES while their registration was S. 1509 92 A. 2009 suspended or permanently revoked pursuant to subdivision three or four of this section, he or she shall impose a civil penalty of twenty-five hundred dollars. 3. (a) Imposition of points. If the enforcement officer determines, after a hearing, that the [retail] dealer violated subdivision [one] TWO of section thirteen hundred ninety-nine-cc of this article with respect to a prohibited sale to a [minor] PERSON UNDER THE AGE OF TWENTY-ONE, he or she shall, in addition to imposing any other penalty required or permitted pursuant to this section, assign two points to the [retail] dealer's record where the individual who committed the violation did not hold a certificate of completion from a state certified tobacco sales training program and one point where the [retail] dealer demonstrates that the person who committed the violation held a certificate of completion from a state certified tobacco sales training program. (b) Revocation. If the enforcement officer determines, after a hear- ing, that a [retail] dealer has violated this article four times within a three year time frame he or she shall, in addition to imposing any other penalty required or permitted by this section, direct the commis- sioner of taxation and finance to revoke the dealer's registration for one year. (c) Duration of points. Points assigned to a [retail] dealer's record shall be assessed for a period of thirty-six months beginning on the first day of the month following the assignment of points. (d) Reinspection. Any [retail] dealer who is assigned points pursuant to paragraph (a) of this subdivision shall be reinspected at least two times a year by the enforcement officer until points assessed are removed from the [retail] dealer's record. (e) Suspension. If the department determines that a [retail] dealer has accumulated three points or more, the department shall direct the commissioner of taxation and finance to suspend such dealer's registra- tion for six months. The three points serving as the basis for a suspen- sion shall be erased upon the completion of the six month penalty. (f) Surcharge. A fifty dollar surcharge to be assessed for every violation will be made available to enforcement officers and shall be used solely for compliance checks to be conducted to determine compli- ance with this section. 4. (a) If the enforcement officer determines, after a hearing, that a [retail] dealer has violated this article while their registration was suspended pursuant to subdivision three of this section, he or she shall, in addition to imposing any other penalty required or permitted by this section, direct the commissioner of taxation and finance to permanently revoke the dealer's registration and not permit the dealer to obtain a new registration. (b) If the enforcement officer determines, after a hearing, that a vending machine operator has violated this article three times within a two year period, or four or more times cumulatively he or she shall, in addition to imposing any other penalty required or permitted by this section, direct the commissioner of taxation and finance to suspend the vendor's registration for one year and not permit the vendor to obtain a new registration for such period. 5. The department shall publish a notification of the name and address of any [retailer] DEALER violating the provisions of this section and indicate the number of times the dealer has violated the provisions of this section. The notification shall be published in a newspaper of general circulation in the locality in which the [retailer] DEALER is located. S. 1509 93 A. 2009 6. (a) In any proceeding pursuant to subdivision three of this section to assign points to a [retail] dealer's record, the [retail] dealer shall be assigned one point instead of two points where the [retail] dealer demonstrates that the person who committed the violation of section thirteen hundred ninety-nine-cc of this article held a valid certificate of completion from a state certified tobacco sales training program. (b) A state certified tobacco sales training program shall include instruction in the following elements: (1) the health effects of tobacco use, especially at a young age; (2) the legal purchase age and the additional requirements of section thirteen hundred ninety-nine-cc of this article; (3) legal forms of identification and the key features thereof; (4) reliance upon legal forms of identification and the right to refuse sales when acting in good faith; (5) means of identifying fraudulent identification of attempted under- age purchasers; (6) techniques used to refuse a sale; (7) the penalties arising out of unlawful sales to underage individ- uals; and (8) the significant disciplinary action or loss of employment that may be imposed by the [retail] dealer for a violation of the law or a devi- ation from the policies of the [retail] dealer in respect to compliance with such law. (c) A tobacco sales training program may be given and administered by a [retail] dealer duly registered under section four hundred eighty-a of the tax law which operates five or more registered locations, by a trade association whose members are registered as [retail] dealers, by national and regional franchisors who have granted at least five fran- chises in the state to persons who are registered as such [retail] deal- ers by a cooperative corporation with five or more members who are registered as [retail] dealers and are operating in this state, and by a wholesaler supplying fifty or more [retail] dealers. A person or entity administering such training program shall issue certificates of completion to persons successfully completing such a training program. Such certificates shall be prima facie evidence of the completion of such a training program by the person named therein. (d) A certificate of completion may be issued for a period of three years, however such certificate shall be invalidated by a change in employment. (e) Entities authorized pursuant to paragraph (c) of this subdivision to give and administer a tobacco sales training program may submit a proposed curriculum, a facsimile of any training aids and materials, and a list of training locations to the department for review. Training aids may include the use of video, computer based instruction, printed mate- rials and other formats deemed acceptable to the department. The depart- ment shall certify programs which provide instruction in the elements set forth in paragraph (b) of this subdivision in a clear and meaningful fashion. Programs approved by the department shall be certified for a period of three years at which time an entity may reapply for certif- ication. A non-refundable fee in the amount of three hundred dollars shall be paid to the department with each application. § 9. Section 1399-hh of the public health law, as added by chapter 433 of the laws of 1997, is amended to read as follows: § 1399-hh. Tobacco VAPOR PRODUCT AND ELECTRONIC CIGARETTE enforcement. The commissioner shall develop, plan and implement a comprehensive S. 1509 94 A. 2009 program to reduce the prevalence of tobacco VAPOR PRODUCT AND ELECTRONIC CIGARETTE use, particularly among persons less than [eighteen] TWENTY- ONE years of age. This program shall include, but not be limited to, support for enforcement of article thirteen-F of this chapter. 1. An enforcement officer, as defined in section thirteen hundred ninety-nine-t of this chapter, may annually, on such dates as shall be fixed by the commissioner, submit an application for such monies as are made available for such purpose. Such application shall be in such form as prescribed by the commissioner and shall include, but not be limited to, plans regarding random spot checks, including the number and types of compliance checks that will be conducted, and other activities to determine compliance with this article. Each such plan shall include an agreement to report to the commissioner: the names and addresses of [tobacco retailers and vendors] DEALERS determined to be unlicensed, if any; the number of complaints filed against licensed [tobacco retail outlets] DEALERS; and the names of [tobacco retailers and vendors] DEAL- ERS who have paid fines, or have been otherwise penalized, due to enforcement actions. 2. The commissioner shall distribute such monies as are made avail- able for such purpose to enforcement officers and, in so doing, consider the number of retail locations registered to sell tobacco products with- in the jurisdiction of the enforcement officer and the level of proposed activities. 3. Monies made available to enforcement officers pursuant to this section shall only be used for local tobacco, HERBAL CIGARETTE, VAPOR PRODUCTS AND ELECTRONIC CIGARETTE enforcement activities approved by the commissioner. § 10. Paragraph (b) of subdivision 2 of section 1399-ll of the public health law, as added by chapter 518 of the laws of 2000, is amended to read as follows: (b) Any person operating a tobacco business wherein bidis is sold or offered for sale is prohibited from selling such bidis to individuals under [eighteen] TWENTY-ONE years of age, and shall post in a conspicu- ous place a sign upon which there shall be imprinted the following statement, "SALE OF BIDIS TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS OF AGE IS PROHIBITED BY LAW." Such sign shall be printed on a white card in red letters at least one-half inch in height. § 11. Subdivision 1 and paragraph (b) of subdivision 2 of section 1399-mm of the public health law, as added by chapter 549 of the laws of 2003, are amended to read as follows: 1. No person shall knowingly sell or provide gutka to any other person under [eighteen] TWENTY-ONE years of age. No other provision of law authorizing the sale of tobacco products, other than subdivision two of this section, shall authorize the sale of gutka. Any person who violates the provisions of this subdivision shall be subject to a civil penalty of not more than five hundred dollars. (b) Any person operating a tobacco business wherein gutka is sold or offered for sale is prohibited from selling such gutka to individuals under [eighteen] TWENTY-ONE years of age, and shall post in a conspicu- ous place a sign upon which there shall be imprinted the following statement, "SALE OF GUTKA TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS OF AGE IS PROHIBITED BY LAW." Such sign shall be printed on a white card in red letters at least one-half inch in height. § 12. The public health law is amended by adding a new section 1399-mm-1 to read as follows: S. 1509 95 A. 2009 § 1399-MM-1. SALE IN PHARMACIES. NO TOBACCO PRODUCTS, HERBAL CIGA- RETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES SHALL BE SOLD IN A PHARMACY OR IN A RETAIL ESTABLISHMENT THAT CONTAINS A PHARMACY OPERATED AS A DEPARTMENT AS DEFINED IN PARAGRAPH F OF SUBDIVISION TWO OF SECTION SIXTY-EIGHT HUNDRED EIGHT OF THE EDUCATION LAW. § 13. The public health law is amended by adding a new section 1399-mm-2 to read as follows: § 1399-MM-2. ELECTRONIC CIGARETTE AND VAPOR PRODUCTS; CHARACTERIZING FLAVORS. THE COMMISSIONER IS AUTHORIZED TO PROMULGATE REGULATIONS GOVERNING THE SALE AND DISTRIBUTION OF ELECTRONIC CIGARETTES OR VAPOR PRODUCTS. SUCH REGULATIONS MAY, TO THE EXTENT DEEMED NECESSARY FOR THE PROTECTION OF PUBLIC HEALTH, PROHIBIT OR RESTRICT: (I) THE SELLING, OFFERING FOR SALE, POSSESSING WITH INTENT TO SELL OR OFFERING FOR SALE, OR DISTRIBUTING OF REFILLS, CARTRIDGES, OR OTHER COMPONENTS OF ELECTRON- IC CIGARETTES OR VAPOR PRODUCTS THAT IMPARTS A CHARACTERIZING FLAVOR; OR (II) THE USE OF TRADEMARKS, NAMES OR DESCRIPTIONS OF CHARACTERIZING FLAVORS THAT ARE CLEARLY INTENDED TO APPEAL TO MINORS. § 14. Paragraph n of subdivision 1 of section 1399-o of the public health law, as amended by chapter 335 of the laws of 2017, is amended to read as follows: n. general hospitals and residential health care facilities as defined in article twenty-eight of this chapter, HOSPITALS AND RESIDENTIAL FACILITIES LICENSED BY OR OPERATED BY THE OFFICE OF MENTAL HEALTH PURSU- ANT TO THE MENTAL HYGIENE LAW, and other health care facilities licensed by the state in which persons reside; provided, however, that the provisions of this subdivision shall not prohibit smoking [and vaping] by patients in separate enclosed rooms of residential health care facil- ities, adult care facilities established or certified under title two of article seven of the social services law, [community mental health resi- dences established under section 41.44 of the mental hygiene law,] or facilities where day treatment programs are provided, which are desig- nated as smoking [and vaping] rooms for patients of such facilities or programs; § 15. Subdivision 2 of section 1399-o of the public health law is amended by adding a new paragraph c to read as follows: C. ON THE GROUNDS OF HOSPITALS LICENSED BY OR OPERATED BY THE OFFICE OF MENTAL HEALTH PURSUANT TO THE MENTAL HYGIENE LAW. § 16. Section 399-gg of the general business law, as added by chapter 542 of the laws of 2014, is amended to read as follows: § 399-gg. Packaging of [electronic liquid] VAPOR PRODUCTS. 1. No person, firm or corporation shall sell or offer for sale any [electronic liquid] VAPOR PRODUCTS, as defined in [paragraph (e) of] subdivision [one] SIXTEEN of section [thirteen hundred ninety-nine-cc] THIRTEEN HUNDRED NINETY-NINE-AA of the public health law, unless the [electronic liquid] VAPOR PRODUCTS is sold or offered for sale in a child resistant bottle which is designed to prevent accidental exposure of children to [electronic liquids] VAPOR PRODUCTS. 2. Any violation of this section shall be punishable by a civil penal- ty not to exceed one thousand dollars. § 17. The tax law is amended by adding a new article 28-C to read as follows: ARTICLE 28-C SUPPLEMENTAL TAX ON VAPOR PRODUCTS SECTION 1180. DEFINITIONS. S. 1509 96 A. 2009 1181. IMPOSITION OF TAX. 1182. IMPOSITION OF COMPENSATING USE TAX. 1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL. 1184. ADMINISTRATIVE PROVISIONS. 1185. CRIMINAL PENALTIES. 1186. DEPOSIT AND DISPOSITION OF REVENUE. § 1180. DEFINITIONS. FOR THE PURPOSES OF THE TAXES IMPOSED BY THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (A) "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED IN TO 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 MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF ARTI- CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW. (B) "VAPOR PRODUCTS DEALER" MEANS A PERSON LICENSED BY THE COMMISSION- ER TO SELL VAPOR PRODUCTS IN THIS STATE. § 1181. IMPOSITION OF TAX. IN ADDITION TO ANY OTHER TAX IMPOSED BY THIS CHAPTER OR OTHER LAW, THERE IS HEREBY IMPOSED A TAX OF TWENTY PERCENT ON RECEIPTS FROM THE RETAIL SALE OF VAPOR PRODUCTS SOLD IN THIS STATE. THE TAX IMPOSED ON THE PURCHASER AND COLLECTED BY THE VAPOR PRODUCTS DEALER AS DEFINED IN SUBDIVISION (B) OF SECTION ELEVEN HUNDRED EIGHTY OF THIS ARTICLE, IN TRUST FOR AND ON ACCOUNT OF THE STATE. § 1182. IMPOSITION OF COMPENSATING USE TAX. (A) EXCEPT TO THE EXTENT THAT VAPOR PRODUCTS HAVE ALREADY BEEN OR WILL BE SUBJECT TO THE TAX IMPOSED BY SECTION ELEVEN HUNDRED EIGHTY-ONE OF THIS ARTICLE, OR ARE OTHERWISE EXEMPT UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED A USE TAX ON EVERY USE OF VAPOR PRODUCTS BY RESIDENT OF THIS STATE. (B) THE TAX IMPOSED BY THIS SECTION SHALL BE AT THE RATE OF TWENTY PERCENT OF (1) THE CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH VAPOR PRODUCT PURCHASED AT RETAIL; (2) THE PRICE AT WHICH ITEMS OF THE SAME KIND OF VAPOR PRODUCTS ARE SOLD BY A MANUFACTURER OF SUCH VAPOR PRODUCTS IN THE REGULAR COURSE OF HIS OR HER BUSINESS. (C) THE TAX DUE PURSUANT TO THIS SECTION SHALL BE PAID AND REPORTED NO LATER THAN TWENTY DAYS AFTER SUCH USE ON A FORM PRESCRIBED BY THE COMMISSIONER. § 1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL. (A) EVERY PERSON WHO INTENDS TO SELL VAPOR PRODUCTS IN THIS STATE MUST RECEIVE FROM THE COMMISSIONER A CERTIFICATE OF REGISTRATION PRIOR TO ENGAGING IN BUSINESS. SUCH PERSON MUST ELECTRONICALLY SUBMIT A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION FOR EACH LOCATION AT WHICH VAPOR PRODUCTS WILL BE SOLD IN THIS STATE, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND SHALL BE ACCOMPANIED BY A NON-REFUNDABLE APPLICATION FEE OF THREE HUNDRED DOLLARS. (B) A VAPOR PRODUCTS DEALER CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE CALENDAR YEAR FOR WHICH IT IS ISSUED UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION OF THE TERM STATED ON THE CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE SHALL BE NULL AND VOID. A CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE AND SHALL BE DESTROYED IMMEDIATELY UPON THE VAPOR PRODUCTS DEALER CEASING TO DO BUSINESS AS SPECIFIED IN SUCH CERTIFICATE OR IN THE EVENT THAT SUCH BUSINESS NEVER COMMENCED. (C) EVERY VAPOR PRODUCT DEALER SHALL PUBLICLY DISPLAY A VAPOR PRODUCTS DEALER CERTIFICATE OF REGISTRATION IN EACH PLACE OF BUSINESS IN THIS STATE WHERE VAPOR PRODUCTS ARE SOLD AT RETAIL. A VAPOR PRODUCTS DEALER S. 1509 97 A. 2009 WHO HAS NO REGULAR PLACE OF BUSINESS SHALL PUBLICLY DISPLAY SUCH VALID CERTIFICATE ON EACH OF ITS CARTS, STANDS, TRUCKS OR OTHER MERCHANDISING DEVICES THROUGH WHICH IT SELLS VAPOR PRODUCTS. (D) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS- TRATION TO ANY APPLICANT WHO DOES NOT POSSESS A VALID CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER. IN ADDITION, THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGIS- TRATION, OR SUSPEND, CANCEL OR REVOKE A CERTIFICATE OF REGISTRATION ISSUED TO ANY PERSON WHO: (A) HAS A PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER; (B) HAS HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE OR ANY LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (C) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (D) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTICLE; (E) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO BE GIVEN A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTICLE WHICH IS FALSE; (F) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE; OR (G) WHOSE PLACE OF BUSINESS IS AT THE SAME PREMISES AS THAT OF A PERSON WHOSE VAPOR PRODUCES DEALER REGISTRATION HAS BEEN REVOKED AND WHERE SUCH REVOCATION IS STILL IN EFFECT, UNLESS THE APPLICANT OR VAPOR PRODUCTS DEALER PROVIDES THE COMMISSIONER WITH ADEQUATE DOCUMENTA- TION DEMONSTRATING THAT SUCH APPLICANT OR VAPOR PRODUCTS DEALER ACQUIRED THE PREMISES OR BUSINESS THROUGH AN ARM'S LENGTH TRANSACTION AS DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER. (2) IN ADDITION TO THE GROUNDS PROVIDED IN PARAGRAPH ONE OF THIS SUBDIVISION, THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGISTRATION AND SHALL CANCEL OR SUSPEND A CERTIFICATE OF REGISTRATION AS DIRECTED BY AN ENFORCEMENT OFFICER PURSUANT TO ARTICLE THIRTEEN-F OF THE PUBLIC HEALTH LAW. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, AN APPLICANT WHOSE APPLICATION FOR A CERTIFICATE OF REGISTRA- TION IS REFUSED OR A VAPOR PRODUCTS DEALER WHOSE REGISTRATION IS CANCELLED OR SUSPENDED UNDER THIS PARAGRAPH SHALL HAVE NO RIGHT TO A HEARING UNDER THIS CHAPTER AND SHALL HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE COMMIS- SIONER WITH RESPECT TO SUCH REFUSAL, SUSPENSION OR CANCELLATION; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO DENY A VAPOR PRODUCTS DEALER A HEARING UNDER ARTICLE THIRTEEN-F OF THE PUBLIC HEALTH LAW OR TO PROHIBIT VAPOR PRODUCTS DEALERS FROM COMMENCING A COURT ACTION OR PROCEEDING AGAINST AN ENFORCEMENT OFFICER AS DEFINED IN SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC HEALTH LAW. (E) IF A VAPOR PRODUCTS DEALER IS SUSPENDED, CANCELLED OR REVOKED AND SUCH VAPOR PRODUCTS DEALER SELLS VAPOR PRODUCTS THROUGH MORE THAN ONE PLACE OF BUSINESS IN THIS STATE, THE VAPOR PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION ISSUED TO THAT PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE, WHERE SUCH VIOLATION OCCURRED, SHALL BE SUSPENDED, REVOKED OR CANCELLED. PROVIDED, HOWEVER, UPON A VAPOR PRODUCTS DEALER'S THIRD SUSPENSION, CANCELLATION OR REVOCATION WITHIN A FIVE-YEAR PERIOD FOR ANY ONE OR MORE BUSINESSES OWNED OR OPERATED BY THE VAPOR PRODUCTS DEALER, SUCH SUSPENSION, CANCELLATION, OR REVOCATION OF THE VAPOR PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION SHALL APPLY TO ALL PLACES OF BUSINESS WHERE HE OR SHE SELLS VAPOR PRODUCTS IN THIS STATE. S. 1509 98 A. 2009 (F) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION MUST NOTIFY THE COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE CERTIF- ICATE OR CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR THE CERTIFICATE OF AUTHORITY. SUCH NOTIFICATION MUST BE MADE ON OR BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS AND MUST BE MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER. (G) EVERY VAPOR PRODUCTS DEALER WHO HOLDS A CERTIFICATE OF REGISTRA- TION UNDER THIS ARTICLE SHALL BE REQUIRED TO REAPPLY FOR A CERTIFICATE OF REGISTRATION FOR THE FOLLOWING CALENDAR YEAR ON OR BEFORE THE TWENTI- ETH DAY OF SEPTEMBER AND SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND CONDITIONS, INCLUDING GROUNDS FOR REFUSAL, AS AN INITIAL REGISTRATION UNDER THIS ARTICLE, INCLUDING BUT NOT LIMITED TO THE PAYMENT OF THE THREE HUNDRED DOLLAR APPLICATION FEE FOR EACH RETAIL LOCATION. (H) IN ADDITION TO ANY OTHER PENALTY IMPOSED BY THIS CHAPTER, ANY VAPOR PRODUCTS DEALER WHO VIOLATES THE PROVISIONS OF THIS SECTION, (1) FOR A FIRST VIOLATION IS LIABLE FOR A CIVIL FINE NOT LESS THAN FIVE THOUSAND DOLLARS BUT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND SUCH CERTIFICATE OF REGISTRATION MAY BE SUSPENDED FOR A PERIOD OF NOT MORE THAN SIX MONTHS; AND (2) FOR A SECOND OR SUBSEQUENT VIOLATION WITHIN THREE YEARS FOLLOWING A PRIOR VIOLATION OF THIS SECTION, IS LIABLE FOR A CIVIL FINE NOT LESS THAN TEN THOUSAND DOLLARS BUT NOT TO EXCEED THIRTY- FIVE THOUSAND DOLLARS AND SUCH CERTIFICATE OF REGISTRATION MAY BE SUSPENDED FOR A PERIOD OF UP TO THIRTY-SIX MONTHS; OR (3) FOR A THIRD VIOLATION WITHIN A PERIOD OF FIVE YEARS, ITS VAPOR PRODUCTS CERTIFICATE OR CERTIFICATES OF REGISTRATION ISSUED TO EACH PLACE OF BUSINESS OWNED OR OPERATED BY THE VAPOR PRODUCTS DEALER IN THIS STATE, SHALL BE REVOKED FOR A PERIOD OF UP TO FIVE YEARS. § 1184. ADMINISTRATIVE PROVISIONS. (A) EXCEPT AS OTHERWISE PROVIDED FOR IN THIS ARTICLE, THE TAXES IMPOSED BY THIS ARTICLE SHALL BE ADMINIS- TERED AND COLLECTED IN A LIKE MANNER AS AND JOINTLY WITH THE TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS CHAPTER. IN ADDITION, EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, ALL OF THE PROVISIONS OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER (EXCEPT SECTIONS ELEVEN HUNDRED SEVEN, ELEVEN HUNDRED EIGHT, ELEVEN HUNDRED NINE, AND ELEVEN HUNDRED FORTY-EIGHT) RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION AND REVIEW OF THE TAXES IMPOSED BY SUCH SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN, INCLUDING, BUT NOT LIMITED TO, THE PROVISIONS RELATING TO DEFINITIONS, RETURNS, EXEMPTIONS, PENALTIES, TAX SECRECY, PERSONAL LIABILITY FOR THE TAX, AND COLLECTION OF TAX FROM THE CUSTOMER, SHALL APPLY TO THE TAXES IMPOSED BY THIS ARTI- CLE SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO THE TAXES IMPOSED BY THIS ARTICLE WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTI- CLE AND SUCH MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE TAXES SO IMPOSED. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE. (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE EXEMPTIONS PROVIDED IN PARAGRAPH TEN OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, AND THE PROVISIONS OF SECTION ELEVEN HUNDRED SIXTEEN, EXCEPT THOSE PROVIDED IN PARAGRAPHS ONE, TWO, THREE AND SIX OF SUBDIVISION (A) OF SUCH SECTION, SHALL NOT APPLY TO THE TAXES IMPOSED BY THIS ARTICLE. S. 1509 99 A. 2009 (C) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION OR SECTION ELEVEN HUNDRED FORTY-SIX OF THIS CHAPTER, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE COMMISSIONER OF HEALTH OR HIS OR HER AUTHORIZED REPRESENTATIVE TO INSPECT ANY RETURN RELATED TO THE TAX IMPOSED BY THIS ARTICLE AND MAY FURNISH TO THE COMMISSIONER OF HEALTH ANY SUCH RETURN OR SUPPLY HIM OR HER WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF A LIABILITY UNDER THIS ARTICLE. § 1185. CRIMINAL PENALTIES. THE CRIMINAL PENALTIES IN SECTIONS EIGH- TEEN HUNDRED ONE THROUGH EIGHTEEN HUNDRED SEVEN AND EIGHTEEN HUNDRED SEVENTEEN OF THIS CHAPTER SHALL APPLY TO THIS ARTICLE WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE. § 1186. DEPOSIT AND DISPOSITION OF REVENUE. THE TAXES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK- ING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER, TO THE CREDIT OF THE COMPTROLLER IN TRUST FOR THE TOBACCO CONTROL AND INSURANCE INITIATIVES POOL ESTABLISHED BY SECTION NINETY-TWO-DD OF THE STATE FINANCE LAW AND DISTRIBUTED BY THE COMMISSIONER OF HEALTH IN ACCORDANCE WITH SECTION TWENTY-EIGHT HUNDRED SEVEN-V OF THE PUBLIC HEALTH LAW. 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. PROVIDED, HOWEVER THAT THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNTS HE OR SHE RECEIVES FROM THE REGISTRATION FEES UNDER SECTION ELEVEN HUNDRED EIGHTY-THREE OF THIS ARTICLE, BEFORE DEPOSIT INTO THE TOBACCO CONTROL AND INSURANCE INITIATIVES POOL, 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 TAXES IMPOSED BY THIS ARTICLE. § 18. Subsection (a) of section 92-dd of the state finance law, as amended by section 3 of part T of chapter 61 of the laws of 2011, is amended to read as follows: (a) On and after April first, two thousand five, such fund shall consist of the revenues heretofore and hereafter collected or required to be deposited pursuant to paragraph (a) of subdivision eighteen of section twenty-eight hundred seven-c, and sections twenty-eight hundred seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t of the public health law, subdivision (b) of section four hundred eight- y-two AND SECTION ELEVEN HUNDRED EIGHTY-SIX of the tax law and required to be credited to the tobacco control and insurance initiatives pool, subparagraph (O) of paragraph four of subsection (j) of section four thousand three hundred one of the insurance law, section twenty-seven of part A of chapter one of the laws of two thousand two and all other moneys credited or transferred thereto from any other fund or source pursuant to law. § 19. Severability clause. If any clause, sentence, paragraph, subdi- vision, 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 S. 1509 100 A. 2009 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. § 20. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however that section seven- teen of this act shall take effect on the first day of a quarterly peri- od described in subdivision (b) of section 1136 of the tax law next commencing at least one hundred eighty days after this act shall become a law, and shall apply to sales and uses of vapor products on or after such date. PART VV Section 1. This act shall be known and may be cited as the "Cannabis Regulation and Taxation Act". § 2. A new chapter 7-A of the consolidated laws is added, to read as follows: CHAPTER 7-A OF THE CONSOLIDATED LAWS CANNABIS LAW ARTICLE 1 SHORT TITLE; POLICY OF STATE AND PURPOSE OF CHAPTER; DEFINITIONS Section 1. Short title. 2. Policy of state and purpose of chapter. 3. Definitions. § 1. Short Title. This chapter shall be known and may be cited and referred to as the "cannabis law". § 2. Policy of state and purpose of chapter. It is hereby declared as policy of the state of New York that it is necessary to properly regu- late and control the cultivation, processing, manufacture, wholesale, and retail production, distribution, transportation, and sale of canna- bis, cannabis related products, medical cannabis, and hemp cannabis within the state of New York, for the purposes of fostering and promot- ing temperance in their consumption, to properly protect the public health, safety, and welfare, and to promote social equality. It is here- by declared that such policy will best be carried out by empowering the state office of cannabis management and its executive director, to determine whether public convenience and advantage will be promoted by the issuance of registrations, licenses and/or permits granting the privilege to produce, distribute, transport, sell, or traffic in canna- bis, medical cannabis, or hemp cannabis, to increase or decrease in the number thereof and the location of premises registered, licensed, or permitted thereby, subject only to the right of judicial review herein- after provided for. It is the purpose of this chapter to carry out that policy in the public interest. The restrictions, regulations, and provisions contained in this chapter are enacted by the legislature for the protection of the health, safety, and welfare of the people of the state. § 3. Definitions. Whenever used in this chapter, unless otherwise expressly stated or unless the context or subject matter requires a S. 1509 101 A. 2009 different meaning, the following terms shall have the representative meanings hereinafter set forth or indicated: 1. "Applicant" means a for-profit entity or not-for-profit corporation and includes: board members, officers, managers, owners, partners, prin- cipal stakeholders and members who submit an application to become a registered organization, licensee or permittee. 2. "Bona fide cannabis retailer association" shall mean an association of retailers holding licenses under this chapter, organized under the non-profit or not-for-profit laws of this state. 3. "Cannabis" means all parts of the plant of the genus cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. 4. "Concentrated cannabis" means: (a) the separated resin, whether crude or purified, obtained from a plant of the genus cannabis; or (b) a material, preparation, mixture, compound or other substance which contains more than three percent by weight of delta-9 tetrahydrocannabi- nol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) monoterpene numbering system. 5. "Cannabis consumer" means a person, twenty-one years of age or older, who purchases cannabis or cannabis products for personal use by persons twenty-one years of age or older, but not for resale to others. 6. "Adult-use cannabis processor" means a person licensed by the office to purchase cannabis and concentrated cannabis from cannabis cultivators, to process cannabis, concentrated cannabis, and cannabis infused products, package and label cannabis, concentrated cannabis and cannabis infused products for sale in retail outlets, and sell cannabis, concentrated cannabis and cannabis infused products at wholesale to licensed adult-use cannabis distributors. 7. "Cannabis product" or "adult-use cannabis" means cannabis, concen- trated cannabis, and cannabis-infused products for use by a cannabis consumer. 8. "Adult-use cannabis retail dispenser" means a person licensed by the executive director to purchase cannabis, concentrated cannabis, and cannabis-infused products from cannabis processors and cannabis distrib- utors, and sell cannabis, concentrated cannabis and cannabis-infused products in a retail outlet. 9. "Certified medical use" means the acquisition, possession, use, or transportation of medical cannabis by a certified patient, or the acqui- sition, possession, delivery, transportation or administration of medical cannabis by a designated caregiver or designated caregiver facility, for use as part of the treatment of the patient's serious condition, as authorized in a certification under this chapter including enabling the patient to tolerate treatment for the serious condition. 10. "Caring for" means treating a patient, in the course of which the practitioner has completed a full assessment of the patient's medical history and current medical condition. 11. "Certified patient" means a patient who is a resident of New York state or receiving care and treatment in New York state as determined by the executive director in regulation, and is certified under section thirty of this chapter. 12. "Certification" means a certification, made under this chapter. 13. "Cultivation" shall include, but not be limited to, the planting, growing, cloning, harvesting, drying, curing, grading and trimming of cannabis. S. 1509 102 A. 2009 14. "Executive director" means the executive director of the office of cannabis management. 15. "Convicted" and "conviction" include and mean a finding of guilt resulting from a plea of guilty, the decision of a court or magistrate or the verdict of a jury, irrespective of the pronouncement of judgment or the suspension thereof. 16. "Designated caregiver" means an individual designated by a certi- fied patient in a registry application. A certified patient may desig- nate up to five designated caregivers. 17. "Designated caregiver facility" means a general hospital or resi- dential health care facility operating pursuant to article twenty-eight of the public health law; an adult care facility operating pursuant to title two of article seven of the social services law; a community mental health residence established pursuant to section 41.44 of the mental hygiene Law; a hospital operating pursuant to section 7.17 of the mental hygiene law; a mental hygiene facility operating pursuant to article thirty-one of the mental hygiene law; an inpatient or residen- tial treatment program certified pursuant to article thirty-two of the mental hygiene law; a residential facility for the care and treatment of persons with developmental disabilities operating pursuant to article sixteen of the mental hygiene law; a residential treatment facility for children and youth operating pursuant to article thirty-one of the mental hygiene law; a private or public school; research institution with an internal review board; or any other facility as determined by the executive director in regulation; that registers with the office of cannabis management to assist one or more certified patients with the acquisition, possession, delivery, transportation or administration of medical cannabis. 18. "Felony" means any criminal offense classified as a felony under the laws of this state or any criminal offense committed in any other state, district, or territory of the United States and classified as a felony therein which if committed within this state, would constitute a felony in this state. 19. "Form of medical cannabis" means characteristics of the medical cannabis recommended or limited for a particular certified patient, including the method of consumption and any particular strain, variety, and quantity or percentage of cannabis or particular active ingredient. 20. "Government agency" means any office, division, board, bureau, commission, office, agency, authority or public corporation of the state or federal government or a county, city, town or village government within the state. 21. "Industrial hemp" means the plant Cannabis sativa L. and any part of such plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concen- tration of not more than three-tenths of one percent on a dry weight basis, used or intended for an industrial purpose or those food and/or food ingredients that are generally recognized as safe, as further defined and regulated in the agriculture and markets law. 22. "Hemp cannabis" means the plant Cannabis sativa L. and any part of such plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether grow- ing or not, with a delta-9 tetrahydrocannabinol concentration of not more than an amount determined by the office in regulation, used or intended for human or animal consumption or use for its cannabinoid content, as determined by the executive director in regulation. Hemp S. 1509 103 A. 2009 cannabis excludes industrial hemp used or intended exclusively for an industrial purpose and those food and/or food ingredients that are generally recognized as safe, as governed by the Agriculture and Markets Law, and shall not be regulated as "hemp" or "hemp cannabis" within the meaning of this section. 23. "Cannabinoid grower" means a person licensed by the office, and in compliance with article twenty-nine of the agriculture and markets law, to acquire, possess, cultivate, and sell hemp cannabis for its cannabi- noid content. 24. "Cannabinoid extractor" means a person licensed by the office to acquire, possess, extract and manufacture hemp cannabis from licensed cannabinoid growers for the manufacture and sale of hemp cannabis products marketed for cannabinoid content and used or intended for human or animal consumption or use. 25. "Individual dose" means a single measure of raw cannabis, medical cannabis or non-infused concentrate or medical concentrate. 26. "Labor peace agreement" means an agreement between an entity and a labor organization that, at a minimum, protects the state's proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interfer- ence with the registered organization or licensee's business. 27. "License" means a license issued pursuant to this chapter. 28. "Medical cannabis" means cannabis as defined in subdivision three of this section, intended for a certified medical use, as determined by the executive director in consultation with the commissioner of health. 30. "Office" or "office of cannabis management" means the New York state office of cannabis management. 31. "Permit" means a permit issued pursuant to this chapter. 32. "Permittee" means any person to whom a permit has been issued pursuant to this chapter. 33. "Person" means individual, institution, corporation, government or governmental subdivision or agency, business trust, estate, trust, part- nership or association, or any other legal entity. 34. "Practitioner" means a practitioner who: (i) is authorized to prescribe controlled substances within the state, (ii) by training or experience is qualified to treat a serious condition as defined in subdivision forty-four of this section; and (iii) completes, at a mini- mum, a two-hour course as determined by the executive director in regu- lation; provided however, the executive director may revoke a practi- tioner's ability to certify patients for cause. 35. "Processing" includes, but is not limited to, blending, extract- ing, infusing, packaging, labeling, branding and otherwise making or preparing cannabis products. Processing shall not include the culti- vation of cannabis. 36. "Public place" means a public place as defined in regulation by the executive director. 37. "Registered organization" means an organization registered under article three of this chapter. 38. "Registry application" means an application properly completed and filed with the office of cannabis management by a certified patient under article three of this chapter. 39. "Registry identification card" means a document that identifies a certified patient or designated caregiver, as provided under section thirty-two of this chapter. 40. "Retail sale" or "sale at retail" means a sale to a consumer or to any person for any purpose other than for resale. S. 1509 104 A. 2009 41. "Retailer" means any person who sells at retail any cannabis prod- uct, the sale of which a license is required under the provisions of this chapter. 42. "Sale" means any transfer, exchange or barter in any manner or by any means whatsoever, and includes and means all sales made by any person, whether principal, proprietor, agent, servant or employee of any cannabis product. 43. "To sell" includes to solicit or receive an order for, to keep or expose for sale, and to keep with intent to sell and shall include the transportation or delivery of any cannabis product in the state. 44. "Serious condition" means having one of the following severe debilitating or life-threatening conditions: cancer, positive status for human immunodeficiency virus or acquired immune deficiency syndrome, amyotrophic lateral sclerosis, Parkinson's disease, multiple sclerosis, damage to the nervous tissue of the spinal cord with objective neurolog- ical indication of intractable spasticity, epilepsy, inflammatory bowel disease, neuropathies, Huntington's disease, post-traumatic stress disorder, pain that degrades health and functional capability where the use of medical cannabis is an alternative to opioid use, substance use disorder, Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthri- tis, autism, any condition authorized as part of a cannabis research license, or any other condition as added by the executive director. 45. "Traffic in" includes to cultivate, process, manufacture, distrib- ute or sell any cannabis, cannabis product, medical cannabis or hemp at wholesale or retail. 46. "Terminally ill" means an individual has a medical prognosis that the individual's life expectancy is approximately one year or less if the illness runs its normal course. 47. "Wholesale sale" or "sale at wholesale" means a sale to any person for purposes of resale. 48. "Distributor" means any person who sells at wholesale any cannabis product, except medical cannabis, for the sale of which a license is required under the provisions of this chapter. 49. "Warehouse" means and includes a place in which cannabis products are housed or stored. ARTICLE 2 NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT Section 9. Establishment of an office of cannabis management. 10. Executive director. 11. Executive director's authority. 12. Rulemaking authority. 13. State cannabis advisory board. 14. Disposition of moneys received for license fees. 15. Legal presumptions. 16. Violations of cannabis laws or regulations; penalties and injunctions. 17. Formal hearings; notice and procedure. 18. Ethics, transparency and accountability. 19. Public health management campaign. § 9. Establishment of an office of cannabis management. Pursuant to a chapter of the laws of two thousand nineteen which added this chapter, there is hereby established, within the division of alcoholic beverage control, an independent office of cannabis management, which shall have exclusive jurisdiction to exercise the powers and duties provided by S. 1509 105 A. 2009 this chapter. The office shall exercise its authority by and through an executive director. § 10. Executive director. The executive director of the state office of cannabis management shall receive an annual salary not to exceed an amount appropriated therefor by the legislature and his or her expenses actually and necessarily incurred in the performance of his official duties, unless otherwise provided by the legislature. § 11. Functions, powers and duties of the office and executive direc- tor. The office of cannabis management, by and through its executive director, shall have the following powers and duties: 1. To issue or refuse to issue any registration, license or permit provided for in this chapter. 2. To limit, or not to limit, in the executive director's discretion, the number of registrations, licenses and permits of each class to be issued within the state or any political subdivision thereof, and in connection therewith to prohibit the acceptance of applications for such classes which have been so limited. 3. To revoke, cancel or suspend for cause any registration, license, or permit issued under this chapter and/or to impose a civil penalty for cause against any holder of a registration, license, or permit issued pursuant to this chapter. Any civil penalty so imposed shall be in addi- tion to and separate and apart from the terms and provisions of the bond required pursuant to section thirty-six of this chapter. 4. To fix by rule the standards of cultivation and processing of medical cannabis, adult use cannabis and hemp cannabis, including but not limited to, the ability to regulate potency and the types of products which may be manufactured and/or processed, in order to ensure the health and safety of the public and the use of proper ingredients and methods in the manufacture of all cannabis and hemp cannabis to be sold or consumed in the state. 5. To hold hearings, subpoena witnesses, compel their attendance, administer oaths, to examine any person under oath and in connection therewith to require the production of any books or records relative to the inquiry. A subpoena issued under this section shall be regulated by the civil practice law and rules. 6. To limit or prohibit, at any time of public emergency and without previous notice or advertisement, the cultivation, processing, distrib- ution or sale of any or all cannabis products, medical cannabis or hemp cannabis, for and during the period of such emergency. 7. To appoint any necessary directors, deputies, counsels, assistants, investigators, and other employees within the limits provided by appro- priation. Investigators so employed by the office shall be deemed to be peace officers for the purpose of enforcing the provisions of the canna- bis control law or judgements or orders obtained for violation thereof, with all the powers set forth in section 2.20 of the criminal procedure law. 8. To remove any employee of the office for cause, after giving such employee a copy of the charges against him or her in writing, and an opportunity to be heard thereon. Any action taken under this subdivision shall be subject to and in accordance with the civil service law. 9. To inspect or provide for the inspection at any time of any prem- ises where cannabis or hemp cannabis is cultivated, processed, stored, distributed or sold. 10. To prescribe forms of applications for registrations, licenses and permits under this chapter and of all reports deemed necessary by the office. S. 1509 106 A. 2009 11. To delegate the powers provided in this section to such other officers or employees or other state agencies as may be deemed appropri- ate by the executive director. 12. To appoint such advisory groups and committees as the executive director deems necessary to provide assistance to the office to carry out the purposes and objectives of this chapter. 13. To exercise the powers and perform the duties in relation to the administration of the office as are necessary but not specifically vest- ed by this chapter, including but not limited to budgetary and fiscal matters. 14. To develop and establish minimum criteria for certifying employees to work in the cannabis industry, including the establishment of a cannabis workers certification program. 15. To enter into contracts, memoranda of understanding, and agree- ments as deemed appropriate by the executive director to effectuate the policy and purpose of this chapter. 16. To issue and administer low interest or zero-interest loans to qualified social equity applicants provided the office has sufficient funds available for such purposes. 17. If the executive director finds that public health, safety, or welfare imperatively requires emergency action, and incorporates a find- ing to that effect in an order, summary suspension of a license may be ordered, effective on the date specified in such order or upon service of a certified copy of such order on the licensee, whichever shall be later, pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined. In addition, the executive director may order the administrative seizure of product, issue a stop order, or take any other action necessary to effectuate and enforce the policy and purpose of this chapter. 18. To issue regulations, declaratory rulings, guidance and industry advisories. § 12. Rulemaking authority. 1. The office shall perform such acts, prescribe such forms and propose such rules, regulations and orders as it may deem necessary or proper to fully effectuate the provisions of this chapter. 2. The office shall have the power to promulgate any and all necessary rules and regulations governing the production, processing, transporta- tion, distribution, and sale of medical cannabis, recreational cannabis, and hemp cannabis, including but not limited to the registration of organizations authorized to traffic in medical cannabis, the licensing and/or permitting of adult-use cannabis cultivators, processors, cooper- atives, distributors, and retail dispensaries, and the licensing of cannabinoid growers and extractors, including, but not limited to: (a) prescribing forms and establishing application, reinstatement, and renewal fees; (b) the qualifications and selection criteria for registration, licensing, or permitting; (c) the books and records to be created and maintained by registered organizations, licensees, and permittees, including the reports to be made thereon to the office, and inspection of any and all books and records maintained by any registered organization, licensee, or permitee and on the premise of any registered organization, licensee, or permit- tee; (d) methods of producing, processing, and packaging cannabis, medical cannabis, cannabis-infused products, and concentrated cannabis; condi- tions of sanitation, and standards of ingredients, quality, and identity S. 1509 107 A. 2009 of cannabis products cultivated, processed, packaged, or sold by regis- tered organizations and licensees; (e) security requirements for adult-use cannabis retail dispensaries and premises where cannabis products, including medical cannabis, are cultivated, produced, processed, or stored, and safety protocols for registered organizations, licensees and their employees; and (f) hearing procedures and additional causes for cancellation, revoca- tion, and/or civil penalties against any person registered, licensed, or permitted by the authority. 3. The office shall promulgate rules and regulations that are calcu- lated to: (a) prevent the distribution of adult-use cannabis to persons under twenty-one years of age; (b) prevent the revenue from the sale of cannabis from going to crimi- nal enterprises, gangs, and cartels; (c) prevent the diversion of cannabis from this state to other states; (d) prevent cannabis activity that is legal under state law from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; (e) prevent violence and the use of firearms in the cultivation and distribution of cannabis; (f) prevent drugged driving and the exacerbation of other adverse public health consequences associated with the use of cannabis; (g) prevent the growing of cannabis on public lands and the attendant public safety and environmental dangers posed by cannabis production on public lands; and (h) prevent the possession and use of cannabis on federal property. 4. The office, in consultation with the department of agriculture and markets and the department of environmental conservation, shall promul- gate necessary rules and regulations governing the safe production of cannabis, including environmental and energy standards and restrictions on the use of pesticides. § 13. State cannabis advisory board. 1. The executive director shall have the authority to establish within the office a state cannabis advi- sory board, which may advise the office on cannabis cultivation, proc- essing, distribution, transport, testing and sale and consider all matters submitted to it by the executive director. 2. The executive director of the office shall serve as the chairperson of the board. The vice chairperson shall be elected from among the members of the board by the members of such board, and shall represent the board in the absence of the chairperson at all official board func- tions. 3. The members of the board shall receive no compensation for their services but shall be allowed their actual and necessary expenses incurred in the performance of their duties as board members. 4. The executive director shall be authorized to promulgate regu- lations establishing the number of members on the board, the term of the board members and any other terms or conditions regarding the state cannabis advisory board. § 14. Disposition of moneys received for license fees. The office shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this chapter and the size of the canna- bis business being licensed, as follows: 1. The office shall charge each registered organization, licensee and permittee a registration, licensure or permit fee, and renewal fee, as S. 1509 108 A. 2009 applicable. The fees may vary depending upon the nature and scope of the different registration, licensure and permit activities. 2. The total fees assessed pursuant to this chapter shall be set at an amount that will generate sufficient total revenue to, at a minimum, fully cover the total costs of administering this chapter. 3. All registration and licensure fees shall be set on a scaled basis by the office, dependent on the size of the business. 4. The office shall deposit all fees collected in the New York state cannabis revenue fund established pursuant to section ninety-nine-ff of the state finance law. § 15. Legal presumptions. The action, proceedings, authority, and orders of the office in enforcing the provisions of the cannabis law and applying them to specific cases shall at all times be regarded as in their nature judicial, and shall be treated as prima facie just and legal. § 16. Violations of cannabis laws or regulations; penalties and injunctions. 1. A person who willfully violates any provision of this chapter, or any regulation lawfully made or established by any public officer under authority of this chapter, the punishment for violating which is not otherwise prescribed by this chapter or any other law, is punishable by imprisonment not exceeding one year, or by a fine not exceeding five thousand dollars or by both. 2. Any person who violates, disobeys or disregards any term or provision of this chapter or of any lawful notice, order or regulation pursuant thereto for which a civil penalty is not otherwise expressly prescribed by law, shall be liable to the people of the state for a civil penalty of not to exceed five thousand dollars for every such violation. 3. The penalty provided for in subdivision one of this section may be recovered by an action brought by the executive director in any court of competent jurisdiction. 4. Nothing in this section shall be construed to alter or repeal any existing provision of law declaring such violations to be misdemeanors or felonies or prescribing the penalty therefor. 5. Such civil penalty may be released or compromised by the executive director before the matter has been referred to the attorney general, and where such matter has been referred to the attorney general, any such penalty may be released or compromised and any action commenced to recover the same may be settled and discontinued by the attorney general with the consent of the executive director. 6. It shall be the duty of the attorney general upon the request of the executive director to bring an action for an injunction against any person who violates, disobeys or disregards any term or provision of this chapter or of any lawful notice, order or regulation pursuant ther- eto; provided, however, that the executive director shall furnish the attorney general with such material, evidentiary matter or proof as may be requested by the attorney general for the prosecution of such an action. 7. It is the purpose of this section to provide additional and cumula- tive remedies, and nothing herein contained shall abridge or alter rights of action or remedies now or hereafter existing, nor shall any provision of this section, nor any action done by virtue of this section, be construed as estopping the state, persons or municipalities in the exercising of their respective rights. § 17. Formal hearings; notice and procedure. 1. The executive direc- tor, or any person designated by him or her for this purpose, may issue S. 1509 109 A. 2009 subpoenas and administer oaths in connection with any hearing or inves- tigation under or pursuant to this chapter, and it shall be the duty of the executive director and any persons designated by him or her for such purpose to issue subpoenas at the request of and upon behalf of the respondent. 2. The executive director and those designated by him or her shall not be bound by the laws of evidence in the conduct of hearing proceedings, but the determination shall be founded upon sufficient evidence to sustain it. 3. Notice of hearing shall be served at least fifteen days prior to the date of the hearing, provided that, whenever because of danger to the public health, safety or welfare it appears prejudicial to the interests of the people of the state to delay action for fifteen days, the executive director may serve the respondent with an order requiring certain action or the cessation of certain activities immediately or within a specified period of less than fifteen days. 4. Service of notice of hearing or order shall be made by personal service or by registered or certified mail. Where service, whether by personal service or by registered or certified mail, is made upon an incompetent, partnership, or corporation, it shall be made upon the person or persons designated to receive personal service by article three of the civil practice law and rules. 5. At a hearing, the respondent may appear personally, shall have the right of counsel, and may cross-examine witnesses against him or her and produce evidence and witnesses in his or her behalf. 6. Following a hearing, the executive director may make appropriate determinations and issue a final order in accordance therewith. 7. The executive director may adopt, amend and repeal administrative rules and regulations governing the procedures to be followed with respect to hearings, such rules to be consistent with the policy and purpose of this chapter and the effective and fair enforcement of its provisions. 8. The provisions of this section shall be applicable to all hearings held pursuant to this chapter, except where other provisions of this chapter applicable thereto are inconsistent therewith, in which event such other provisions shall apply. § 18. Ethics, transparency and accountability. No member of the office or any officer, deputy, assistant, inspector or employee thereof shall have any interest, direct or indirect, either proprietary or by means of any loan, mortgage or lien, or in any other manner, in or on any premises where cannabis, medical cannabis or hemp is cultivated, processed, distributed or sold; nor shall he or she have any interest, direct or indirect, in any business wholly or partially devoted to the cultivation, processing, distribution, sale, transportation or storage of cannabis, medical cannabis or hemp, or own any stock in any corpo- ration which has any interest, proprietary or otherwise, direct or indi- rect, in any premises where cannabis, medical cannabis or hemp is culti- vated, processed, distributed or sold, or in any business wholly or partially devoted to the cultivation, processing, distribution, sale, transportation or storage of cannabis, medical cannabis or hemp, or receive any commission or profit whatsoever, direct or indirect, from any person applying for or receiving any license or permit provided for in this chapter, or hold any other elected or appointed public office in the state or in any political subdivision. Anyone who violates any of the provisions of this section shall be removed or shall divulge him or herself of such direct or indirect interests. S. 1509 110 A. 2009 § 19. Public health campaign. The office, in consultation with the commissioners of the department of health, office of alcoholism and substance abuse services and office of mental health, shall develop and implement a comprehensive public health campaign regarding adult-use cannabis. ARTICLE 3 MEDICAL CANNABIS Section 30. Certification of patients. 31. Lawful medical use. 32. Registry identification cards. 33. Registration as a designated caregiver facility. 34. Registered organizations. 35. Registering of registered organizations. 36. Expedited registration of registered organizations. 37. Reports of registered organizations. 38. Evaluation; research programs; report by office. 39. Cannabis research license. 40. Registered organizations and adult-use cannabis. 41. Home cultivation of medical cannabis. 42. Relation to other laws. 43. Protections for the medical use of cannabis. 44. Regulations. 45. Suspend; terminate. 46. Pricing. 47. Severability. § 30. Certification of patients. 1. A patient certification may only be issued if: (a) the patient has a serious condition, which shall be specified in the patient's health care record; (b) the practitioner by training or experience is qualified to treat the serious condition; (c) the patient is under the practitioner's continuing care for the serious condition; and (d) in the practitioner's professional opinion and review of past treatments, the patient is likely to receive therapeutic or palliative benefit from the primary or adjunctive treatment with medical use of cannabis for the serious condition. 2. The certification shall include: (a) the name, date of birth and address of the patient; (b) a statement that the patient has a serious condition and the patient is under the practitioner's care for the seri- ous condition; (c) a statement attesting that all requirements of subdi- vision one of this section have been satisfied; (d) the date; and (e) the name, address, telephone number, and the signature of the certifying practitioner. The executive director may require by regulation that the certification shall be on a form provided by the office. The practition- er may state in the certification that, in the practitioner's profes- sional opinion, the patient would benefit from medical cannabis only until a specified date. The practitioner may state in the certification that, in the practitioner's professional opinion, the patient is termi- nally ill and that the certification shall not expire until the patient dies. 3. In making a certification, the practitioner may consider the form of medical cannabis the patient should consume, including the method of consumption and any particular strain, variety, and quantity or percent- S. 1509 111 A. 2009 age of cannabis or particular active ingredient, and appropriate dosage. The practitioner may state in the certification any recommendation or limitation the practitioner makes, in his or her professional opinion, concerning the appropriate form or forms of medical cannabis and dosage. 4. Every practitioner shall consult the prescription monitoring program registry prior to making or issuing a certification, for the purpose of reviewing a patient's controlled substance history. For purposes of this section, a practitioner may authorize a designee to consult the prescription monitoring program registry on his or her behalf, provided that such designation is in accordance with section thirty-three hundred forty-three-a of the public health law. 5. The practitioner shall give the certification to the certified patient, and place a copy in the patient's health care record. 6. No practitioner shall issue a certification under this section for himself or herself. 7. A registry identification card based on a certification shall expire one year after the date the certification is signed by the prac- titioner. 8. (a) If the practitioner states in the certification that, in the practitioner's professional opinion, the patient would benefit from medical cannabis only until a specified earlier date, then the registry identification card shall expire on that date; (b) if the practitioner states in the certification that in the practitioner's professional opinion the patient is terminally ill and that the certification shall not expire until the patient dies, then the registry identification card shall state that the patient is terminally ill and that the registration card shall not expire until the patient dies; (c) if the practitioner re-issues the certification to terminate the certification on an earlier date, then the registry identification card shall expire on that date and shall be promptly destroyed by the certified patient; (d) if the certification so provides, the registry identification card shall state any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; and (e) the executive director shall make regulations to implement this subdivi- sion. § 31. Lawful medical use. 1. The possession, acquisition, use, deliv- ery, transfer, transportation, or administration of medical cannabis by a certified patient, designated caregiver or designated caregiver facil- ity, for certified medical use, shall be lawful under this article provided that: (a) the cannabis that may be possessed by a certified patient shall not exceed a sixty-day supply of the dosage as determined by the practi- tioner, consistent with any guidance and regulations issued by the exec- utive director, provided that during the last seven days of any sixty- day period, the certified patient may also possess up to such amount for the next sixty-day period; (b) the cannabis that may be possessed by designated caregivers does not exceed the quantities referred to in paragraph (a) of this subdivi- sion for each certified patient for whom the caregiver possesses a valid registry identification card, up to five certified patients; (c) the cannabis that may be possessed by designated caregiver facili- ties does not exceed the quantities referred to in paragraph (a) of this subdivision for each certified patient under the care or treatment of the facility; (d) the form or forms of medical cannabis that may be possessed by the certified patient, designated caregiver or designated caregiver facility S. 1509 112 A. 2009 pursuant to a certification shall be in compliance with any recommenda- tion or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient in the certif- ication; and (e) the medical cannabis shall be kept in the original package in which it was dispensed under this article, except for the portion removed for immediate consumption for certified medical use by the certified patient. 2. Notwithstanding subdivision one of this section: (a) possession of medical cannabis shall not be lawful under this article if it is smoked or grown in a public place, regardless of the form of medical cannabis stated in the patient's certification. (b) a person possessing medical cannabis under this chapter shall possess his or her registry identification card at all times when in immediate possession of medical cannabis. § 32. Registry identification cards. 1. Upon approval of the certif- ication, the office shall issue registry identification cards for certi- fied patients and designated caregivers. A registry identification card shall expire as provided in this article or as otherwise provided in this section. The office shall begin issuing registry identification cards as soon as practicable after the certifications required by this chapter are granted. The office may specify a form for a registry appli- cation, in which case the office shall provide the form on request, reproductions of the form may be used, and the form shall be available for downloading from the office's website. 2. To obtain, amend or renew a registry identification card, a certi- fied patient or designated caregiver shall file a registry application with the office, unless otherwise exempted by the executive director in regulation. The registry application or renewal application shall include: (a) in the case of a certified patient: (i) the patient's certification, a new written certification shall be provided with a renewal application; (ii) the name, address, and date of birth of the patient; (iii) the date of the certification; (iv) if the patient has a registry identification card based on a current valid certification, the registry identification number and expiration date of that registry identification card; (v) the specified date until which the patient would benefit from medical cannabis, if the certification states such a date; (vi) the name, address, and telephone number of the certifying practi- tioner; (vii) any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; (viii) if the certified patient designates a designated caregiver, the name, address, and date of birth of the designated caregiver, and other individual identifying information required by the office; and (ix) other individual identifying information required by the office; (b) in the case of a designated caregiver: (i) the name, address, and date of birth of the designated caregiver; (ii) if the designated caregiver has a registry identification card, the registry identification number and expiration date of that registry identification card; and (iii) other individual identifying information required by the office; (c) a statement that a false statement made in the application is punishable under section 210.45 of the penal law; S. 1509 113 A. 2009 (d) the date of the application and the signature of the certified patient or designated caregiver, as the case may be; (e) any other requirements determined by the executive director. 3. Where a certified patient is under the age of eighteen or otherwise incapable of consent: (a) The application for a registry identification card shall be made by an appropriate person over eighteen years of age. The application shall state facts demonstrating that the person is appropriate. (b) The designated caregiver shall be: (i) a parent or legal guardian of the certified patient; (ii) a person designated by a parent or legal guardian; (iii) a designated caregiver facility; or (iv) an appropriate person approved by the office upon a sufficient showing that no parent or legal guardian is appropriate or available. 4. No person may be a designated caregiver if the person is under twenty-one years of age unless a sufficient showing is made to the office that the person should be permitted to serve as a designated caregiver. The requirements for such a showing shall be determined by the executive director. 5. No person may be a designated caregiver for more than five certi- fied patients at one time. 6. If a certified patient wishes to change or terminate his or her designated caregiver, for whatever reason, the certified patient shall notify the office as soon as practicable. The office shall issue a notification to the designated caregiver that their registration card is invalid and must be promptly destroyed. The newly designated caregiver must comply with all requirements set forth in this section. 7. If the certification so provides, the registry identification card shall contain any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient. 8. The office shall issue separate registry identification cards for certified patients and designated caregivers as soon as reasonably prac- ticable after receiving a complete application under this section, unless it determines that the application is incomplete or factually inaccurate, in which case it shall promptly notify the applicant. 9. If the application of a certified patient designates an individual as a designated caregiver who is not authorized to be a designated care- giver, that portion of the application shall be denied by the office but that shall not affect the approval of the balance of the application. 10. A registry identification card shall: (a) contain the name of the certified patient or the designated care- giver as the case may be; (b) contain the date of issuance and expiration date of the registry identification card; (c) contain a registry identification number for the certified patient or designated caregiver, as the case may be and a registry identifica- tion number; (d) contain a photograph of the individual to whom the registry iden- tification card is being issued, which shall be obtained by the office in a manner specified by the executive director in regulations; provided, however, that if the office requires certified patients to submit photographs for this purpose, there shall be a reasonable accom- modation of certified patients who are confined to their homes due to their medical conditions and may therefore have difficulty procuring photographs; (e) be a secure document as determined by the office; S. 1509 114 A. 2009 (f) plainly state any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; and (g) any other requirements determined by the executive director. 11. A certified patient or designated caregiver who has been issued a registry identification card shall notify the office of any change in his or her name or address or, with respect to the patient, if he or she ceases to have the serious condition noted on the certification within ten days of such change. The certified patient's or designated caregiver's registry identification card shall be deemed invalid and shall be promptly destroyed. 12. If a certified patient or designated caregiver loses his or her registry identification card, he or she shall notify the office within ten days of losing the card. The office shall issue a new registry iden- tification card as soon as practicable, which may contain a new registry identification number, to the certified patient or designated caregiver, as the case may be. 13. The office shall maintain a confidential list of the persons to whom it has issued registry identification cards. Individual identifying information obtained by the office under this article shall be confiden- tial and exempt from disclosure under article six of the public officers law. Notwithstanding this subdivision, the office may notify any appro- priate law enforcement agency of information relating to any violation or suspected violation of this article. 14. The office shall verify to law enforcement personnel in an appro- priate case whether a registry identification card is valid. 15. If a certified patient or designated caregiver willfully violates any provision of this article as determined by the executive director, his or her certification and registry identification card may be suspended or revoked. This is in addition to any other penalty that may apply. § 33. Registration as a designated caregiver facility. 1. To obtain, amend or renew a registration as a designated caregiver facility, the facility shall file a registry application with the office. The registry application or renewal application shall include: (a) the facility's full name and address; (b) operating certificate or license number where appropriate; (c) printed name, title, and signature of an authorized facility representative; (d) a statement that the facility agrees to secure and ensure proper handling of all medical cannabis products; (e) an acknowledgement that a false statement in the application is punishable under section 210.45 of the penal law; and (f) any other information that may be required by the executive direc- tor. 2. Prior to issuing or renewing a designated caregiver facility regis- tration, the office may verify the information submitted by the appli- cant. The applicant shall provide, at the office's request, such infor- mation and documentation, including any consents or authorizations that may be necessary for the office to verify the information. 3. The office shall approve, deny or determine incomplete or inaccu- rate an initial or renewal application within thirty days of receipt of the application. If the application is approved within the 30-day peri- od, the office shall issue a registration as soon as is reasonably prac- ticable. S. 1509 115 A. 2009 4. An applicant shall have thirty days from the date of a notification of an incomplete or factually inaccurate application to submit the mate- rials required to complete, revise or substantiate information in the application. If the applicant fails to submit the required materials within such thirty-day time period, the application shall be denied by the office. 5. Registrations issued under this section shall remain valid for two years from the date of issuance. § 34. Registered organizations. 1. A registered organization shall be a for-profit business entity or not-for-profit corporation organized for the purpose of acquiring, possessing, manufacturing, selling, deliver- ing, transporting, distributing or dispensing cannabis for certified medical use. 2. The acquiring, possession, manufacture, sale, delivery, transport- ing, distributing or dispensing of medical cannabis by a registered organization under this article in accordance with its registration under this article or a renewal thereof shall be lawful under this chap- ter. 3. Each registered organization shall contract with an independent laboratory permitted by the office to test the medical cannabis produced by the registered organization. The executive director shall approve the laboratory used by the registered organization and may require that the registered organization use a particular testing laboratory. 4. (a) A registered organization may lawfully, in good faith, sell, deliver, distribute or dispense medical cannabis to a certified patient or designated caregiver upon presentation to the registered organization of a valid registry identification card for that certified patient or designated caregiver. When presented with the registry identification card, the registered organization shall provide to the certified patient or designated caregiver a receipt, which shall state: the name, address, and registry identification number of the registered organization; the name and registry identification number of the certified patient and the designated caregiver, if any; the date the cannabis was sold; any recom- mendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; and the form and the quantity of medical cannabis sold. The registered organization shall retain a copy of the registry identification card and the receipt for six years. (b) The proprietor of a registered organization shall file or cause to be filed any receipt and certification information with the office by electronic means on a real-time basis as the executive director shall require by regulation. When filing receipt and certification information electronically pursuant to this paragraph, the proprietor of the regis- tered organization shall dispose of any electronically recorded prescription information in such manner as the executive director shall by regulation require. 5. (a) No registered organization may sell, deliver, distribute or dispense to any certified patient or designated caregiver a quantity of medical cannabis larger than that individual would be allowed to possess under this chapter. (b) When dispensing medical cannabis to a certified patient or desig- nated caregiver, the registered organization: (i) shall not dispense an amount greater than a sixty-day supply to a certified patient until the certified patient has exhausted all but a seven day supply provided pursuant to a previously issued certification; and (ii) shall verify the S. 1509 116 A. 2009 information in subparagraph (i) of this paragraph by consulting the prescription monitoring program registry under this article. (c) Medical cannabis dispensed to a certified patient or designated caregiver by a registered organization shall conform to any recommenda- tion or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient. 6. When a registered organization sells, delivers, distributes or dispenses medical cannabis to a certified patient or designated caregiv- er, it shall provide to that individual a safety insert, which will be developed by the registered organization and approved by the executive director and include, but not be limited to, information on: (a) methods for administering medical cannabis in individual doses, (b) any potential dangers stemming from the use of medical cannabis, (c) how to recognize what may be problematic usage of medical cannabis and obtain appropriate services or treatment for problematic usage, and (d) other information as determined by the executive director. 7. Registered organizations shall not be managed by or employ anyone who has been convicted of any felony other than for the sale or possession of drugs, narcotics, or controlled substances, and provided that this subdivision only applies to (a) managers or employees who come into contact with or handle medical cannabis, and (b) a conviction less than ten years, not counting time spent in incarceration, prior to being employed, for which the person has not received a certificate of relief from disabilities or a certificate of good conduct under article twen- ty-three of the correction law. 8. Manufacturing of medical cannabis by a registered organization shall only be done in an indoor, enclosed, secure facility located in New York state, which may include a greenhouse. The executive director shall promulgate regulations establishing requirements for such facili- ties. 9. Dispensing of medical cannabis by a registered organization shall only be done in an indoor, enclosed, secure facility located in New York state, which may include a greenhouse. The executive director shall promulgate regulations establishing requirements for such facilities. 10. A registered organization shall determine the quality, safety, and clinical strength of medical cannabis manufactured or dispensed by the registered organization, and shall provide documentation of that quali- ty, safety and clinical strength to the office and to any person or entity to which the medical cannabis is sold or dispensed. 11. A registered organization shall be deemed to be a "health care provider" for the purposes of article two-D of article two of the public health law. 12. Medical cannabis shall be dispensed to a certified patient or designated caregiver in a sealed and properly labeled package. The labeling shall contain: (a) the information required to be included in the receipt provided to the certified patient or designated caregiver by the registered organization; (b) the packaging date; (c) any applicable date by which the medical cannabis should be used; (d) a warning stat- ing, "This product is for medicinal use only. Women should not consume during pregnancy or while breastfeeding except on the advice of the certifying health care practitioner, and in the case of breastfeeding mothers, including the infant's pediatrician. This product might impair the ability to drive. Keep out of reach of children."; (e) the amount of individual doses contained within; and (f) a warning that the medical cannabis must be kept in the original container in which it was dispensed. S. 1509 117 A. 2009 13. The executive director is authorized to make rules and regulations restricting the advertising and marketing of medical cannabis. § 35. Registering of registered organizations. 1. Application for initial registration. (a) An applicant for registration as a registered organization under section thirty-four of this article shall include such information prepared in such manner and detail as the executive director may require, including but not limited to: (i) a description of the activities in which it intends to engage as a registered organization; (ii) that the applicant: (A) is of good moral character; (B) possesses or has the right to use sufficient land, buildings, and other premises, which shall be specified in the application, and equip- ment to properly carry on the activity described in the application, or in the alternative posts a bond of not less than two million dollars; (C) is able to maintain effective security and control to prevent diversion, abuse, and other illegal conduct relating to the cannabis; and (D) is able to comply with all applicable state laws and regulations relating to the activities in which it intends to engage under the registration; (iii) that the applicant has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees and the maintenance of such a labor peace agreement shall be an ongoing material condition of certification; (iv) the applicant's status as a for-profit business entity or not- for-profit corporation; and (v) the application shall include the name, residence address and title of each of the officers and directors and the name and residence address of any person or entity that is a member of the applicant. Each such person, if an individual, or lawful representative if a legal enti- ty, shall submit an affidavit with the application setting forth: (A) any position of management or ownership during the preceding ten years of a ten per centum or greater interest in any other business, located in or outside this state, manufacturing or distributing drugs; (B) whether such person or any such business has been convicted of a felony or had a registration or license suspended or revoked in any administrative or judicial proceeding; and (C) such other information as the executive director may reasonably require. 2. The applicant shall be under a continuing duty to report to the office any change in facts or circumstances reflected in the application or any newly discovered or occurring fact or circumstance which is required to be included in the application. 3. (a) The executive director shall grant a registration or amendment to a registration under this section if he or she is satisfied that: (i) the applicant will be able to maintain effective control against diversion of cannabis; (ii) the applicant will be able to comply with all applicable state laws; (iii) the applicant and its officers are ready, willing and able to properly carry on the manufacturing or distributing activity for which a registration is sought; S. 1509 118 A. 2009 (iv) the applicant possesses or has the right to use sufficient land, buildings and equipment to properly carry on the activity described in the application; (v) it is in the public interest that such registration be granted, including but not limited to: (A) whether the number of registered organizations in an area will be adequate or excessive to reasonably serve the area; (B) whether the registered organization is a minority and/or woman owned business enterprise or a service-disabled veteran-owned business; (C) whether the registered organization provides education and outreach to practitioners; (D) whether the registered organization promotes the research and development of medical cannabis and patient outreach; and (E) the affordability medical cannabis products offered by the regis- tered organization; (vi) the applicant and its managing officers are of good moral charac- ter; (vii) the applicant has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees; and (viii) the applicant satisfies any other conditions as determined by the executive director. (b) If the executive director is not satisfied that the applicant should be issued a registration, he or she shall notify the applicant in writing of those factors upon which the denial is based. Within thirty days of the receipt of such notification, the applicant may submit a written request to the executive director to appeal the decision. (c) The fee for a registration under this section shall be an amount determined by the office in regulations; provided, however, if the registration is issued for a period greater than two years the fee shall be increased, pro rata, for each additional month of validity. (d) Registrations issued under this section shall be effective only for the registered organization and shall specify: (i) the name and address of the registered organization; (ii) which activities of a registered organization are permitted by the registration; (iii) the land, buildings and facilities that may be used for the permitted activities of the registered organization; and (iv) such other information as the executive director shall reasonably provide to assure compliance with this article. (e) Upon application of a registered organization, a registration may be amended to allow the registered organization to relocate within the state or to add or delete permitted registered organization activities or facilities. The fee for such amendment shall be two hundred fifty dollars. 4. A registration issued under this section shall be valid for two years from the date of issue, except that in order to facilitate the renewals of such registrations, the executive director may upon the initial application for a registration, issue some registrations which may remain valid for a period of time greater than two years but not exceeding an additional eleven months. 5. (a) An application for the renewal of any registration issued under this section shall be filed with the office not more than six months nor less than four months prior to the expiration thereof. A late-filed application for the renewal of a registration may, in the S. 1509 119 A. 2009 discretion of the executive director, be treated as an application for an initial license. (b) The application for renewal shall include such information prepared in the manner and detail as the executive director may require, including but not limited to: (i) any material change in the circumstances or factors listed in subdivision one of this section; and (ii) every known charge or investigation, pending or concluded during the period of the registration, by any governmental or administrative agency with respect to: (A) each incident or alleged incident involving the theft, loss, or possible diversion of cannabis manufactured or distributed by the appli- cant; and (B) compliance by the applicant with the laws of the state with respect to any substance listed in section thirty-three hundred six of the public health law. (c) An applicant for renewal shall be under a continuing duty to report to the office any change in facts or circumstances reflected in the application or any newly discovered or occurring fact or circum- stance which is required to be included in the application. (d) If the executive director is not satisfied that the registered organization applicant is entitled to a renewal of the registration, he or she shall within a reasonably practicable time as determined by the executive director, serve upon the registered organization or its attor- ney of record in person or by registered or certified mail an order directing the registered organization to show cause why its application for renewal should not be denied. The order shall specify in detail the respects in which the applicant has not satisfied the executive director that the registration should be renewed. 6. (a) The executive director shall renew a registration unless he or she determines and finds that: (i) the applicant is unlikely to maintain or be able to maintain effective control against diversion; (ii) the applicant is unlikely to comply with all state laws applica- ble to the activities in which it may engage under the registration; (iii) it is not in the public interest to renew the registration because the number of registered organizations in an area is excessive to reasonably serve the area; or (iv) the applicant has either violated or terminated its labor peace agreement. (b) For purposes of this section, proof that a registered organiza- tion, during the period of its registration, has failed to maintain effective control against diversion, violates any provision of this article, or has knowingly or negligently failed to comply with applica- ble state laws relating to the activities in which it engages under the registration, shall constitute grounds for suspension, termination or limitation of the registered organization's registration or as deter- mined by the executive director. The registered organization shall also be under a continuing duty to report to the authority any material change or fact or circumstance to the information provided in the regis- tered organization's application. 7. The office may suspend or terminate the registration of a regis- tered organization, on grounds and using procedures under this article relating to a license, to the extent consistent with this article. The authority shall suspend or terminate the registration in the event that a registered organization violates or terminates the applicable labor S. 1509 120 A. 2009 peace agreement. Conduct in compliance with this article which may violate conflicting federal law, shall not be grounds to suspend or terminate a registration. 8. The office shall begin issuing registrations for registered organ- izations as soon as practicable after the certifications required by this article are given. 9. The executive director shall register at least ten registered organizations that manufacture medical cannabis with no more than four dispensing sites wholly owned and operated by such registered organiza- tion. The executive director shall ensure that such registered organiza- tions and dispensing sites are geographically distributed across the state. The executive director may register additional registered organ- izations. § 36. Expedited registration of registered organizations. 1. There is hereby established in the office an emergency medical cannabis access program, referred to in this section as the "program", under this section. The purpose of the program is to expedite the availability of medical cannabis to avoid suffering and loss of life, during the period before full implementation of and production under this article, espe- cially in the case of patients whose serious condition is progressive and degenerative or is such that delay in the patient's medical use of cannabis poses a serious risk to the patient's life or health. The executive director shall implement the program as expeditiously as prac- ticable, including by emergency regulation. 2. For the purposes of this section, and for specified limited times, the executive director may waive or modify the requirements of this article relating to registered organizations, consistent with the legis- lative intent and purpose of this article and this section. Where an entity seeking to be a registered organization under the program oper- ates in a jurisdiction other than the state of New York, under licensure or other governmental recognition of that jurisdiction, and the laws of that jurisdiction are acceptable to the executive director as consistent with the legislative intent and purpose of this article and this section, then the executive director may accept that licensure or recog- nition as wholly or partially satisfying the requirements of this arti- cle, for purposes of the registration and operation of the registered organization under the program and this section. 3. In considering an application for registration as a registered organization under this section, the executive director shall give pref- erence to the following: (a) an applicant that is currently producing or providing or has a history of producing or providing medical cannabis in another jurisdic- tion in full compliance with the laws of the jurisdiction; (b) an applicant that is able and qualified to both produce, distrib- ute, and dispense medical cannabis to patients expeditiously; and (c) an applicant that proposes a location or locations for dispensing by the registered organization, which ensure, to the greatest extent possible, that certified patients have access to a registered organiza- tion. 4. The executive director may make regulations under this section: (a) limiting registered organizations registered under this section; or (b) limiting the allowable levels of cannabidiol and tetrahydrocanna- binol that may be contained in medical cannabis authorized under this article, based on therapeutics and patient safety. S. 1509 121 A. 2009 5. A registered organization under this section may apply under this article to receive or renew registration. § 37. Reports of registered organizations. 1. The executive director shall, by regulation, require each registered organization to file reports by the registered organization during a particular period. The executive director shall determine the information to be reported and the forms, time, and manner of the reporting. 2. The executive director shall, by regulation, require each regis- tered organization to adopt and maintain security, tracking, record keeping, record retention and surveillance systems, relating to all medical cannabis at every stage of acquiring, possession, manufacture, sale, delivery, transporting, distributing, or dispensing by the regis- tered organization, subject to regulations of the executive director. § 38. Evaluation; research programs; report by office. 1. The execu- tive director may provide for the analysis and evaluation of the opera- tion of this title. The executive director may enter into agreements with one or more persons, not-for-profit corporations or other organiza- tions, for the performance of an evaluation of the implementation and effectiveness of this title. 2. The office may develop, seek any necessary federal approval for, and carry out research programs relating to medical use of cannabis. Participation in any such research program shall be voluntary on the part of practitioners, patients, and designated caregivers. 3. The office shall report every two years, beginning two years after the effective date of this chapter, to the governor and the legislature on the medical use of cannabis under this title and make appropriate recommendations. § 39. Cannabis research license. 1. The executive director shall establish a cannabis research license that permits a licensee to produce, process, purchase and possess cannabis for the following limit- ed research purposes: (a) to test chemical potency and composition levels; (b) to conduct clinical investigations of cannabis-derived drug products; (c) to conduct research on the efficacy and safety of administering cannabis as part of medical treatment; and (d) to conduct genomic or agricultural research. 2. As part of the application process for a cannabis research license, an applicant must submit to the office a description of the research that is intended to be conducted as well as the amount of cannabis to be grown or purchased. The office shall review an applicant's research project and determine whether it meets the requirements of subsection one of this section. In addition, the office shall assess the applica- tion based on the following criteria: (a) project quality, study design, value, and impact; (b) whether the applicant has the appropriate personnel, expertise, facilities and infrastructure, funding, and human, animal, or other approvals in place to successfully conduct the project; and (c) whether the amount of cannabis to be grown or purchased by the applicant is consistent with the project's scope and goals. If the office determines that the research project does not meet the require- ments of subsection one of this section, the application must be denied. 3. A cannabis research licensee may only sell cannabis grown or within its operation to other cannabis research licensees. The office may revoke a cannabis research license for violations of this subsection. S. 1509 122 A. 2009 4. A cannabis research licensee may contract with the higher education institutions to perform research in conjunction with the university. All research projects, entered into under this section must be approved by the office and meet the requirements of subsection one of this section. 5. In establishing a cannabis research license, the executive director may adopt regulations on the following: (a) application requirements; (b) cannabis research license renewal requirements, including whether additional research projects may be added or considered; (c) conditions for license revocation; (d) security measures to ensure cannabis is not diverted to purposes other than research; (e) amount of plants, useable cannabis, cannabis concentrates, or cannabis-infused products a licensee may have on its premises; (f) licensee reporting requirements; (g) conditions under which cannabis grown by licensed cannabis produc- ers and other product types from licensed cannabis processors may be donated to cannabis research licensees; and (h) any additional requirements deemed necessary by the office. 6. A cannabis research license issued pursuant to this section must be issued in the name of the applicant, specify the location at which the cannabis researcher intends to operate, which must be within the state of New York, and the holder thereof may not allow any other person to use the license. 7. The application fee for a cannabis research license shall be deter- mined by the executive director on an annual basis. 8. Each cannabis research licensee shall issue an annual report to the office. The office shall review such report and make a determination as to whether the research project continues to meet the research quali- fications under this section. § 40. Registered organizations and adult-use cannabis. 1. The execu- tive director shall have the authority to grant some or all of the registered organizations previously registered with the department of health and currently registered and in good standing with the office, the ability to be licensed to cultivate, process, distribute and sell adult-use cannabis and cannabis products, pursuant to any fees, rules or conditions prescribed by the executive director in regulation, but exempt from the restrictions on licensed adult-use cultivators, process- ors, and distributors from having any ownership interest in a licensed adult-use retail dispensary pursuant to article four of this chapter. 2. The office shall have the authority to hold a competitive bidding process, including an auction, to determine the registered organization(s) authorized to be licensed to cultivate, process, distribute and sell adult-use cannabis and to collect the fees generated from such auction to administer incubators and low or zero-interest loans to qualified social equity applicants. The timing and manner in which registered organizations may be granted such authority shall be determined by the executive director in regulation. 3. Alternatively, registered organizations may apply for licensure as an adult-use cannabis cultivator, adult-use cannabis processor, and adult-use cannabis distributor, or apply for licensure as an adult-use cannabis retail dispensary, subject to all of the restrictions and limi- tations set forth in article four of this chapter. § 41. Home cultivation of medical cannabis. 1. Certified patients and their designated caregiver(s) twenty-one years of age or older may apply for registration with the office to grow, possess or transport no more S. 1509 123 A. 2009 than four cannabis plants per certified patient with no more than eight cannabis plants per household. 2. All medical cannabis cultivated at home must be grown in an enclosed, locked space, not open or viewable to the public. Such homeg- rown medical cannabis must only be for use by the certified patient and may not be distributed, sold, or gifted. 3. The executive director shall develop rules and regulations govern- ing this section. § 42. Relation to other laws. 1. The provisions of this article shall apply, except that where a provision of this article conflicts with another provision of this chapter, this article shall apply. 2. Medical cannabis shall not be deemed to be a "drug" for purposes of article one hundred thirty-seven of the education law. § 43. Protections for the medical use of cannabis. 1. Certified patients, designated caregivers, designated caregiver facilities, prac- titioners, registered organizations and the employees of registered organizations, and cannabis researchers shall not be subject to arrest, prosecution, or penalty in any manner, or denied any right or privilege, including but not limited to civil penalty or disciplinary action by a business or occupational or professional licensing board or bureau, solely for the certified medical use or manufacture of cannabis, or for any other action or conduct in accordance with this article. 2. Being a certified patient shall be deemed to be having a "disabili- ty" under article fifteen of the executive law, section forty-c of the civil rights law, sections 240.00, 485.00, and 485.05 of the penal law, and section 200.50 of the criminal procedure law. This subdivision shall not bar the enforcement of a policy prohibiting an employee from performing his or her employment duties while impaired by a controlled substance. This subdivision shall not require any person or entity to do any act that would put the person or entity in direct violation of federal law or cause it to lose a federal contract or funding. 3. The fact that a person is a certified patient and/or acting in accordance with this article, shall not be a consideration in a proceed- ing pursuant to applicable sections of the domestic relations law, the social services law and the family court act. 4. (a) Certification applications, certification forms, any certified patient information contained within a database, and copies of registry identification cards shall be deemed exempt from public disclosure under sections eighty-seven and eighty-nine of the public officers law. (b) The name, contact information, and other information relating to practitioners registered with the office under this article shall be public information and shall be maintained by the executive director on the office's website accessible to the public in searchable form. Howev- er, if a practitioner notifies the office in writing that he or she does not want his or her name and other information disclosed, that practi- tioner's name and other information shall thereafter not be public information or maintained on the office's website, unless the practi- tioner cancels the request. § 44. Regulations. The executive director shall make regulations to implement this article. § 45. Suspend; terminate. Based upon the recommendation of the execu- tive director and/or the superintendent of state police that there is a risk to the public health or safety, the governor may immediately termi- nate all licenses issued to registered organizations. § 46. Pricing. 1. Every sale of medical cannabis shall be at or below the price approved by the executive director. Every charge made or S. 1509 124 A. 2009 demanded for medical cannabis not in accordance with the price approved by the executive director, is prohibited. 2. The executive director is hereby authorized to set the per dose price of each form of medical cannabis sold by any registered organiza- tion. In reviewing the per dose price of each form of medical cannabis, the executive director may consider the fixed and variable costs of producing the form of cannabis and any other factor the executive direc- tor, in his or her discretion, deems relevant in reviewing the per dose price of each form of medical cannabis. § 47. Severability. If any clause, sentence, paragraph, section or part of this article shall be adjudged by any court of competent juris- diction to be invalid, the judgment shall not affect, impair, or invali- date the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part thereof directly involved in the controversy in which the judgment shall have been rendered. ARTICLE 4 ADULT-USE CANNABIS Section 60. Licenses issued. 61. License application. 62. Information to be requested in applications for licenses. 63. Fees. 64. Selection criteria. 65. Limitations of licensure; duration. 66. License renewal. 67. Amendments; changes in ownership and organizational struc- ture. 68. Adult-use cultivator license. 69. Adult-use processor license. 70. Adult-use cooperative license. 71. Adult-use distributor license. 72. Adult-use retail dispensary license. 73. Notification to municipalities of adult-use retail dispen- sary. 74. On-site consumption license; provisions governing on-site consumption licenses. 75. Record keeping and tracking. 76. Inspections and ongoing requirements. 77. Adult-use cultivators, processors or distributors not to be interested in retail dispensaries. 78. Packaging and labeling of adult-use cannabis products. 79. Laboratory testing. 80. Provisions governing the cultivation and processing of adult-use cannabis. 81. Provisions governing the distribution of adult-use cannabis. 82. Provisions governing adult-use cannabis retail dispensaries. 83. Adult-use cannabis advertising. 84. Minority, women-owned businesses and disadvantaged farmers; incubator program. 85. Collective bargaining. 86. Regulations. § 60. Licenses issued. The following kinds of licenses shall be issued by the executive director for the cultivation, processing, distribution and sale of cannabis to cannabis consumers: S. 1509 125 A. 2009 1. Adult-use cultivator license; 2. Adult-use processor license; 3. Adult-use cooperative license; 4. Adult-use distributor license; 5. Adult-use retail dispensary license; 6. On-site consumption license; and 7. Any other type of license as prescribed by the executive director in regulation. § 61. License Application. 1. Any person may apply to the office for a license to cultivate, process, distribute or dispense cannabis within this state for sale. Such application shall be in writing and verified and shall contain such information as the office shall require. Such application shall be accompanied by a check or draft for the amount required by this article for such license. If the office shall approve the application, it shall issue a license in such form as shall be determined by its rules. Such license shall contain a description of the licensed premises and in form and in substance shall be a license to the person therein specifically designated to cultivate, process, distribute or dispense cannabis in the premises therein specifically licensed. 2. Except as otherwise provided in this article, a separate license shall be required for each facility at which cultivation, processing, distribution or retail dispensing is conducted. 3. An applicant shall not be denied a license under this article based solely on a conviction for a violation of article two hundred twenty or section 240.36 of the penal law, prior to the date article two hundred twenty-one of the penal law took effect, or a conviction for a violation of article two hundred twenty-one of the penal law after the effective date of this chapter. § 62. Information to be requested in applications for licenses. 1. The office shall have the authority to prescribe the manner and form in which an application must be submitted to the office for licensure under this article. 2. The executive director is authorized to adopt regulations, includ- ing by emergency rule, establishing information which must be included on an application for licensure under this article. Such information may include, but is not limited to: information about the applicant's iden- tity, including racial and ethnic diversity; ownership and investment information, including the corporate structure; evidence of good moral character, including the submission of fingerprints by the applicant to the division of criminal justice services; information about the prem- ises to be licensed; financial statements; and any other information prescribed by in regulation. 3. All license applications shall be signed by the applicant (if an individual), by a managing partner (if a limited liability corporation), by an officer (if a corporation), or by all partners (if a partnership). Each person signing such application shall verify it or affirm it as true under the penalties of perjury. 4. All license or permit applications shall be accompanied by a check, draft or other forms of payment as the office may require or authorize in the amount required by this article for such license or permit. 5. If there be any change, after the filing of the application or the granting of a license, in any of the facts required to be set forth in such application, a supplemental statement giving notice of such change, cost and source of money involved in the change, duly verified, shall be filed with the office within ten days after such change. Failure to do S. 1509 126 A. 2009 so shall, if willful and deliberate, be cause for revocation of the license. 6. In giving any notice, or taking any action in reference to a regis- tered organization or licensee of a licensed premises, the office may rely upon the information furnished in such application and in any supplemental statement connected therewith, and such information may be presumed to be correct, and shall be binding upon a registered organiza- tions, licensee or licensed premises as if correct. All information required to be furnished in such application or supplemental statements shall be deemed material in any prosecution for perjury, any proceeding to revoke, cancel or suspend any license, and in the office's determi- nation to approve or deny the license. 7. The office may, in its discretion, waive the submission of any category of information described in this section for any category of license or permit, provided that it shall not be permitted to waive the requirement for submission of any such category of information solely for an individual applicant or applicants. § 63. Fees. 1. The office shall have the authority to charge appli- cants for licensure under this article a non-refundable application fee and/or to auction licenses to bidders determined by the office to be qualified for such licensure based on the selection criteria in section sixty-four of this article. Such fee may be based on the type of licen- sure sought, cultivation and/or production volume, or any other factors deemed reasonable and appropriate by the office to achieve the policy and purpose of this chapter. 2. The office shall have the authority to charge licensees a biennial license fee. Such fee shall be based on the amount of cannabis to be cultivated, processed, distributed and/or dispensed by the licensee or the gross annual receipts of the licensee for the previous license peri- od, and any other factors deemed reasonable and appropriate by the office. § 64. Selection criteria. 1. The executive director shall develop regulations for determining whether or not an applicant should be grant- ed the privilege of an adult-use cannabis license, based on, but not limited to, the following criteria: (a) the applicant will be able to maintain effective control against the illegal diversion of cannabis; (b) the applicant will be able to comply with all applicable state laws and regulations; (c) the applicant and its officers are ready, willing, and able to properly carry on the activities for which a license is sought; (d) the applicant possesses or has the right to use sufficient land, buildings, and equipment to properly carry on the activity described in the application; (e) it is in the public interest that such license be granted, taking into consideration, but not limited to, the following criteria: (i) that it is a privilege, and not a right, to cultivate, process, distribute, and sell cannabis; (ii) the number, classes, and character of other licenses in proximity to the location and in the particular municipality or subdivision there- of; (iii) evidence that all necessary licenses and permits have been obtained from the state and all other governing bodies; (iv) effect of the grant of the license on pedestrian or vehicular traffic, and parking, in proximity to the location; S. 1509 127 A. 2009 (v) the existing noise level at the location and any increase in noise level that would be generated by the proposed premises; (vi) the history of violations under the alcoholic beverage control law or the cannabis law at the location, as well as any pattern of violations under the alcoholic beverage control law or the cannabis law, and reported criminal activity at the proposed premises; (vii) the effect on the production, price and availability of cannabis and cannabis products; and (viii) any other factors specified by law or regulation that are rele- vant to determine that granting a license would promote public conven- ience and advantage and the public interest of the community; (f) the applicant and its managing officers are of good moral charac- ter and do not have an ownership or controlling interest in more licenses or permits than allowed by this chapter; (g) the applicant has entered into a labor peace agreement with a bona-fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees. In evaluating appli- cations from entities with twenty-five or more employees, the office shall give priority to applicants that are a party to a collective bargaining agreement with a bona-fide labor organization in New York or in another state, or uses union labor to construct its licensed facili- ty; (h) the applicant will contribute to communities and people dispropor- tionately harmed by cannabis law enforcement; (i) if the application is for an adult-use cultivator license, the environmental impact of the facility to be licensed; and (j) the applicant satisfies any other conditions as determined by the executive director. 2. If the executive director is not satisfied that the applicant should be issued a license, the executive director shall notify the applicant in writing of the specific reason or reasons for denial. 3. The executive director shall have authority and sole discretion to determine the number of licenses issued pursuant to this article. § 65. Limitations of licensure; duration. 1. No license of any kind may be issued to a person under the age of twenty-one years, nor shall any licensee employ anyone under the age of twenty-one years. 2. No person shall sell, deliver, or give away or cause or permit or procure to be sold, delivered or given away any cannabis to any person, actually or apparently, under the age of twenty-one years, any visibly intoxicated person, or any habitually intoxicated person known to be such by the person authorized to manufacture, traffic, or sell any cannabis. 3. The office shall have the authority to limit, by canopy, plant count, square footage or other means, the amount of cannabis allowed to be grown, processed, distributed or sold by a licensee. 4. All licenses under this article shall expire two years after the date of issue. § 66. License renewal. 1. Each license, issued pursuant to this arti- cle, may be renewed upon application therefore by the licensee and the payment of the fee for such license as prescribed by this article. In the case of applications for renewals, the office may dispense with the requirements of such statements as it deems unnecessary in view of those contained in the application made for the original license, but in any event the submission of photographs of the licensed premises shall be dispensed with, provided the applicant for such renewal shall file a statement with the office to the effect that there has been no alter- S. 1509 128 A. 2009 ation of such premises since the original license was issued. The office may make such rules as it deems necessary, not inconsistent with this chapter, regarding applications for renewals of licenses and permits and the time for making the same. 2. Each applicant must submit to the office documentation of the racial, ethnic, and gender diversity of the applicant's employees and owners prior to a license being renewed. In addition, the office may create a social responsibility framework agreement and make the adher- ence to such agreement a conditional requirement of license renewal. 3. The office shall provide an application for renewal of a license issued under this article not less than ninety days prior to the expira- tion of the current license. 4. The office may only issue a renewal license upon receipt of the prescribed renewal application and renewal fee from a licensee if, in addition to the criteria in this section, the licensee's license is not under suspension and has not been revoked. § 67. Amendments; changes in ownership and organizational structure. 1. Licenses issued pursuant to this article shall specify: (a) the name and address of the licensee; (b) the activities permitted by the license; (c) the land, buildings and facilities that may be used for the licensed activities of the licensee; (d) a unique license number issued by the office to the licensee; and (e) such other information as the executive director shall deem neces- sary to assure compliance with this chapter. 2. Upon application of a licensee to the office, a license may be amended to allow the licensee to relocate within the state, to add or delete licensed activities or facilities, or to amend the ownership or organizational structure of the entity that is the licensee. The fee for such amendment shall be two hundred fifty dollars. 3. A license shall become void by a change in ownership, substantial corporate change or location without prior written approval of the exec- utive director. The executive director may promulgate regulations allow- ing for certain types of changes in ownership without the need for prior written approval. 4. For purposes of this section, "substantial corporate change" shall mean: (a) for a corporation, a change of eighty percent or more of the offi- cers and/or directors, or a transfer of eighty percent or more of stock of such corporation, or an existing stockholder obtaining eighty percent or more of the stock of such corporation; or (b) for a limited liability company, a change of eighty percent or more of the managing members of the company, or a transfer of eighty percent or more of ownership interest in said company, or an existing member obtaining a cumulative of eighty percent or more of the ownership interest in said company. § 68. Adult-use cultivator license. 1. An adult-use cultivator's license shall authorize the acquisition, possession, cultivation and sale of cannabis from the licensed premises of the adult-use cultivator by such licensee to duly licensed processors in this state. The execu- tive director may establish regulations allowing licensed adult-use cultivators to perform certain types of minimal processing without the need for an adult-use processor license. 2. For purposes of this section, cultivation shall include, but not be limited to, the planting, growing, cloning, harvesting, drying, curing, grading and trimming of cannabis. S. 1509 129 A. 2009 3. A person holding an adult-use cultivator's license may apply for, and obtain, one processor's license and one distributor's license. 4. A person holding an adult-use cultivator's license may not also hold a retail dispensary license pursuant to this article and no adult- use cannabis cultivator shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, or any other means, in any premises licensed as an adult-use cannabis retail dispensary or in any business licensed as an adult-use cannabis retail dispensary pursuant to this article. 5. A person holding an adult-use cultivator's license may not hold a license to distribute cannabis under this article unless the licensed cultivator is also licensed as a processor under this article. 6. No person may have a direct or indirect financial or controlling interest in more than one adult-use cultivator license issued pursuant to this chapter. 7. The executive director shall have the authority to issue microbusi- ness cultivator licenses, allowing microbusiness licensees to cultivate, process, and distribute adult-use cannabis direct to licensed cannabis retailers, under a single license. The executive director shall estab- lish through regulation a production limit of total cannabis cultivated, processed and/or distributed annually for microbusiness cultivator licenses. § 69. Adult-use processor license. 1. A processor's license shall authorize the acquisition, possession, processing and sale of cannabis from the licensed premises of the adult-use cultivator by such licensee to duly licensed distributors. 2. For purposes of this section, processing shall include, but not be limited to, blending, extracting, infusing, packaging, labeling, brand- ing and otherwise making or preparing cannabis products. Processing shall not include the cultivation of cannabis. 3. No processor shall be engaged in any other business on the premises to be licensed; except that nothing contained in this chapter shall prevent a cannabis cultivator, cannabis processor, and cannabis distrib- utor from operating on the same premises and from a person holding all three licenses. 4. No cannabis processor licensee may hold more than three cannabis processor licenses. 5. No adult-use cannabis processor shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, or any other means, in any premises licensed as an adult-use cannabis retail dispensary or in any business licensed as an adult-use cannabis retail dispensary pursuant to this article. § 70. Adult-use cooperative license. 1. A cooperative license shall authorize the acquisition, possession, cultivation, processing and sale from the licensed premises of the adult-use cooperative by such licensee to duly licensed distributors and/or retail dispensaries; but not directly to cannabis consumers. 2. To be licensed as an adult-use cooperative, the cooperative must: (i) be comprised of residents of the state of New York as a limited liability company or limited liability partnership under the laws of the state, or an appropriate business structure as determined by the execu- tive director; (ii) at least one member of the cooperative must have filed a Federal Schedule F (Form 1040) for three of the past five years; and S. 1509 130 A. 2009 (iii) the cooperative must operate according to the seven cooperative principles published by the International Cooperative Alliance in nine- teen hundred ninety-five. 3. No person shall be a member of more than one adult-use cooperative licensed pursuant to this section. 4. No person or member of an adult-use cooperative license may have a direct or indirect financial or controlling interest in any other adult-use cannabis license issued pursuant to this chapter. 5. No adult-use cannabis cooperative shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, or any other means, in any premises licensed as an adult-use cannabis retail dispensary or in any business licensed as an adult-use cannabis retail dispensary pursuant to this article. 6. The executive director shall promulgate regulations governing coop- erative licenses, including, but not limited to, the establishment of canopy limits on the size and scope of cooperative licensees, and other measures designed to incentivize the use and licensure of cooperatives. § 71. Adult-use distributor license. 1. A distributor's license shall authorize the acquisition, possession, distribution and sale of cannabis from the licensed premises of a licensed adult-use processor, microbusi- ness cultivator, or registered organization authorized to sell adult-use cannabis, to duly licensed retail dispensaries. 2. No distributor shall have a direct or indirect economic interest in any adult-use retail dispensary licensed pursuant to this article, or in any registered organization registered pursuant to article three of this chapter. This restriction shall not prohibit a registered organization authorized pursuant to section forty of this chapter, from being granted licensure by the office to distribute adult-use cannabis products culti- vated and processed by the registered organization to the registered organization's own licensed adult-use retail dispensaries. 3. Nothing in subdivision two of this section shall prevent a distrib- utor from charging an appropriate fee for the distribution of cannabis, including based on the volume of cannabis distributed. § 72. Adult-use retail dispensary license. 1. A retail dispensary license shall authorize the acquisition, possession and sale of cannabis from the licensed premises of the retail dispensary by such licensee to cannabis consumers. 2. No person may have a direct or indirect financial or controlling interest in more than three retail dispensary licenses issued pursuant to this chapter. This restriction shall not prohibit a registered organ- ization, authorized pursuant to section forty of this chapter, from being granted licensure by the office to sell adult-use cannabis at locations previously registered by the department of health and in oper- ation as of April first, two thousand nineteen; subject to any condi- tions, limitations or restrictions established by the office. 3. No person holding a retail dispensary license may also hold an adult-use cultivation, processor, microbusiness cultivator, cooperative or distributor license pursuant to this article. 4. No retail license shall be granted for any premises, unless the applicant shall be the owner thereof, or shall be in possession of said premises under a lease, management agreement or other agreement giving the applicant control over the premises, in writing, for a term not less than the license period. 5. No premises shall be licensed to sell cannabis products, unless said premises shall be located in a store, the principal entrance to S. 1509 131 A. 2009 which shall be from the street level and located on a public thorough- fare in premises which may be occupied, operated or conducted for busi- ness, trade or industry or on an arcade or sub-surface thoroughfare leading to a railroad terminal. 6. No cannabis retail license shall be granted for any premises where a licensee would not be allowed to sell at retail for consumption of alcohol off the premises based on its proximity to a building occupied exclusively as a school, church, synagogue or other place of worship pursuant to the provisions of section one hundred five of the alcohol beverage control law. § 73. Notification to municipalities of adult-use retail dispensary. 1. Not less than thirty days nor more than two hundred seventy days before filing an application for licensure as an adult-use cannabis retail dispensary, an applicant shall notify the municipality in which the premises is located of such applicant's intent to file such an application. 2. Such notification shall be made to the clerk of the village, town or city, as the case may be, wherein the premises is located. For purposes of this section: (a) notification need only be given to the clerk of a village when the premises is located within the boundaries of the village, town or city; and (b) in the city of New York, the community board established pursuant to section twenty-eight hundred of the New York city charter with juris- diction over the area in which the premises is located shall be consid- ered the appropriate public body to which notification shall be given. 3. Such notification shall be made in such form as shall be prescribed by the rules of the office. 4. A municipality may express an opinion for or against the granting of such application. Any such opinion shall be deemed part of the record upon which the office makes its determination to grant or deny the application. 5. Such notification shall be made by: (a) certified mail, return receipt requested; (b) overnight delivery service with proof of mailing; or (c) personal service upon the offices of the clerk or community board. 6. The office shall require such notification to be on a standardized form that can be obtained on the internet or from the office and such notification to include: (a) the trade name or "doing business as" name, if any, of the estab- lishment; (b) the full name of the applicant; (c) the street address of the establishment, including the floor location or room number, if applicable; (d) the mailing address of the establishment, if different than the street address; (e) the name, address and telephone number of the attorney or repre- sentative of the applicant, if any; (f) a statement indicating whether the application is for: (i) a new establishment; (ii) a transfer of an existing licensed business; (iii) a renewal of an existing license; or (iv) an alteration of an existing licensed premises; (g) if the establishment is a transfer or previously licensed prem- ises, the name of the old establishment and such establishment's regis- tration or license number; S. 1509 132 A. 2009 (h) in the case of a renewal or alteration application, the registra- tion or license number of the applicant; and (i) the type of license. § 74. On-site consumption license; provisions governing on-site consumption licenses. 1. No licensed adult-use cannabis retail dispen- sary shall be granted a cannabis on-site consumption license for any premises, unless the applicant shall be the owner thereof, or shall be in possession of said premises under a lease, in writing, for a term not less than the license period except, however, that such license may thereafter be renewed without the requirement of a lease as provided in this section. This subdivision shall not apply to premises leased from government agencies, as defined under subdivision twenty of section three of this chapter; provided, however, that the appropriate adminis- trator of such government agency provides some form of written documen- tation regarding the terms of occupancy under which the applicant is leasing said premises from the government agency for presentation to the office at the time of the license application. Such documentation shall include the terms of occupancy between the applicant and the government agency, including, but not limited to, any short-term leasing agreements or written occupancy agreements. 2. No adult-use cannabis retail dispensary shall be granted a cannabis on-site consumption license for any premises where a license would not be allowed to sell at retail for consumption of alcohol on the premises based on its proximity to a building occupied exclusively as a school, church, synagogue or other place of worship pursuant to the provisions of section one hundred five of the alcoholic beverage control law. 3. The office may consider any or all of the following in determining whether public convenience and advantage and the public interest will be promoted by the granting of a license for an on-site cannabis consump- tion at a particular location: (a) that it is a privilege, and not a right, to cultivate, process, distribute, and sell cannabis; (b) the number, classes, and character of other licenses in proximity to the location and in the particular municipality or subdivision there- of; (c) evidence that all necessary licenses and permits have been obtained from the state and all other governing bodies; (d) effect of the grant of the license on pedestrian or vehicular traffic, and parking, in proximity to the location; (e) the existing noise level at the location and any increase in noise level that would be generated by the proposed premises; (f) the history of violations under the alcoholic beverage control law or this chapter at the location, as well as any pattern of violations under the alcoholic beverage control law or this chapter, and reported criminal activity at the proposed premises; and (g) any other factors specified by law or regulation that are relevant to determine that granting a license would promote public convenience and advantage and the public interest of the community; 4. If the office shall disapprove an application for an on-site consumption license, it shall state and file in its offices the reasons therefor and shall notify the applicant thereof. Such applicant may thereupon apply to the office for a review of such action in a manner to be prescribed by the rules of the office. 5. No adult-use cannabis on-site consumption licensee shall keep upon the licensed premises any adult-use cannabis products except those purchased from a licensed distributor, microbusiness cultivator or S. 1509 133 A. 2009 registered organization authorized to sell adult-use cannabis, and only in containers approved by the office. Such containers shall have affixed thereto such labels as may be required by the rules of the office. No cannabis retail licensee for on-site consumption shall reuse, refill, tamper with, adulterate, dilute or fortify the contents of any container of cannabis products as received from the manufacturer or distributor. 6. No cannabis on-site consumption licensee shall sell, deliver or give away, or cause or permit or procure to be sold, delivered or given away any cannabis for consumption on the premises where sold in a container or package containing more than one gram of cannabis. 7. Except where a permit to do so is obtained pursuant to section 405.10 of the penal law, no cannabis on-site consumption licensee shall suffer, permit, or promote an event on its premises wherein any person shall use, explode, or cause to explode, any fireworks or other pyro- technics in a building as defined in paragraph e of subdivision one of section 405.10 of the penal law, that is covered by such license or possess such fireworks or pyrotechnics for such purpose. In addition to any other penalty provided by law, a violation of this subdivision shall constitute an adequate ground for instituting a proceeding to suspend, cancel, or revoke the license of the violator in accordance with the applicable procedures specified in this chapter; provided however, if more than one licensee is participating in a single event, upon approval by the office, only one licensee must obtain such permit. 8. No premises licensed to sell adult-use cannabis for on-site consumption under this chapter shall be permitted to have any opening or means of entrance or passageway for persons or things between the licensed premises and any other room or place in the building containing the licensed premises, or any adjoining or abutting premises, unless ingress and egress is restricted by an employee, agent of the licensee, or other method approved by the office of controlling access to the facility. 9. Each cannabis on-site consumption licensee shall keep and maintain upon the licensed premises, adequate records of all transactions involv- ing the business transacted by such licensee which shall show the amount of cannabis products, in an applicable metric measurement, purchased by such licensee together with the names, license numbers and places of business of the persons from whom the same were purchased, the amount involved in such purchases, as well as the sales of cannabis products made by such licensee. The office is hereby authorized to promulgate rules and regulations permitting an on-site licensee operating two or more premises separately licensed to sell cannabis products for on-site consumption to inaugurate or retain in this state methods or practices of centralized accounting, bookkeeping, control records, reporting, billing, invoicing or payment respecting purchases, sales or deliveries of cannabis products, or methods and practices of centralized receipt or storage of cannabis products within this state without segregation or earmarking for any such separately licensed premises, wherever such methods and practices assure the availability, at such licensee's central or main office in this state, of data reasonably needed for the enforcement of this chapter. Such records shall be available for inspection by any authorized representative of the office. 10. All retail licensed premises shall be subject to inspection by any peace officer, acting pursuant to his or her special duties, or police officer and by the duly authorized representatives of the office, during the hours when the said premises are open for the transaction of busi- ness. S. 1509 134 A. 2009 11. A cannabis on-site consumption licensee shall not provide cannabis products to any person under the age of twenty-one or to anyone visibly intoxicated. § 75. Record keeping and tracking. 1. The executive director shall, by regulation, require each licensee pursuant to this article to adopt and maintain security, tracking, record keeping, record retention and surveillance systems, relating to all cannabis at every stage of acquir- ing, possession, manufacture, sale, delivery, transporting, or distrib- uting by the licensee, subject to regulations of the executive director. 2. Every licensee shall keep and maintain upon the licensed premises adequate books and records of all transactions involving the licensee and sale of its products, which shall include, but is not limited to, all information required by any rules promulgated by the office. 3. Each sale shall be recorded separately on a numbered invoice, which shall have printed thereon the number, the name of the licensee, the address of the licensed premises, and the current license number. Licensed producers shall deliver to the licensed distributor a true duplicate invoice stating the name and address of the purchaser, the quantity purchased, description and the price of the product, and a true, accurate and complete statement of the terms and conditions on which such sale is made. 4. Such books, records and invoices shall be kept for a period of five years and shall be available for inspection by any authorized represen- tative of the office. 5. Each adult-use cannabis retail dispensary and on-site consumption licensee shall keep and maintain upon the licensed premises, adequate records of all transactions involving the business transacted by such licensee which shall show the amount of cannabis, in weight, purchased by such licensee together with the names, license numbers and places of business of the persons from whom the same were purchased, the amount involved in such purchases, as well as the sales of cannabis made by such licensee. § 76. Inspections and ongoing requirements. All licensed or permitted premises, regardless of the type of premises, shall be subject to inspection by the office, by the duly authorized representatives of the office, by any peace officer acting pursuant to his or her special duties, or by a police officer, during the hours when the said premises are open for the transaction of business. The office shall make reason- able accommodations so that ordinary business is not interrupted and safety and security procedures are not compromised by the inspection. A person who holds a license or permit must make himself or herself, or an agent thereof, available and present for any inspection required by the office. Such inspection may include, but is not limited to, ensuring compliance by the licensee or permittee with all other applicable build- ing codes, fire, health, safety, and governmental regulations, including at the municipal, county, and state level. § 77. Adult-use cultivators, processors or distributors not to be interested in retail dispensaries. 1. It shall be unlawful for a culti- vator, processor, cooperative or distributor licensed under this article to: (a) be interested directly or indirectly in any premises where any cannabis product is sold at retail; or in any business devoted wholly or partially to the sale of any cannabis product at retail by stock owner- ship, interlocking directors, mortgage or lien or any personal or real property, or by any other means. S. 1509 135 A. 2009 (b) make, or cause to be made, any loan to any person engaged in the manufacture or sale of any cannabis product at wholesale or retail. (c) make any gift or render any service of any kind whatsoever, directly or indirectly, to any person licensed under this chapter which in the judgment of the office may tend to influence such licensee to purchase the product of such cultivator or processor or distributor. (d) enter into any contract with any retail licensee whereby such licensee agrees to confine his sales to cannabis products manufactured or sold by one or more such cultivator or processors or distributors. Any such contract shall be void and subject the licenses of all parties concerned to revocation for cause. 2. The provisions of this section shall not prohibit a registered organization authorized pursuant to section forty of this chapter, from cultivating, processing, distributing and selling adult-use cannabis under this article, at facilities wholly owned and operated by such registered organization, subject to any conditions, limitations or restrictions established by the office. 3. The office shall have the power to create rules and regulations in regard to this section. § 78. Packaging and labeling of adult-use cannabis products. 1. The office is hereby authorized to promulgate rules and regulations govern- ing the packaging and labeling of cannabis products, sold or possessed for sale in New York state. 2. Such regulations shall include, but not be limited to, requiring that: (a) packaging meets requirements similar to the federal "poison prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.; (b) all cannabis-infused products shall have a separate packaging for each serving; (c) prior to delivery or sale at a retailer, cannabis and cannabis products shall be labeled and placed in a resealable, child-resistant package; and (d) packages and labels shall not be made to be attractive to minors. 3. Such regulations shall include requiring labels warning consumers of any potential impact on human health resulting from the consumption of cannabis products that shall be affixed to those products when sold, if such labels are deemed warranted by the office. 4. Such rules and regulations shall establish methods and procedures for determining serving sizes for cannabis-infused products, active cannabis concentration per serving size, and number of servings per container. Such regulations shall also require a nutritional fact panel that incorporates data regarding serving sizes and potency thereof. 5. The packaging, sale, or possession by any licensee of any cannabis product not labeled or offered in conformity with rules and regulations promulgated in accordance with this section shall be grounds for the imposition of a fine, and/or the suspension, revocation or cancellation of a license. § 79. Laboratory testing. 1. Every processor of adult-use cannabis shall contract with an independent laboratory permitted pursuant to section one hundred twenty-nine of this chapter, to test the cannabis products it produces pursuant to rules and regulations prescribed by the office. The executive director may assign an approved testing laborato- ry, which the processor of adult-use cannabis must use. 2. Adult-use cannabis processors shall make laboratory test reports available to licensed distributors and retail dispensaries for all cannabis products manufactured by the processor. S. 1509 136 A. 2009 3. Licensed retail dispensaries shall maintain accurate documentation of laboratory test reports for each cannabis product offered for sale to cannabis consumers. Such documentation shall be made publicly available by the licensed retail dispensary. 4. Onsite laboratory testing by licensees is permissible; however, such testing shall not be certified by the office and does not exempt the licensee from the requirements of quality assurance testing at a testing laboratory pursuant to this section. 5. An owner of a cannabis laboratory testing permit shall not hold a license in any other category within this article and shall not own or have ownership interest in a registered organization registered pursuant to article three of this chapter. 6. The office shall have the authority to require any licensee under this article to submit cannabis or cannabis products to one or more independent laboratories for testing. § 80. Provisions governing the cultivation and processing of adult-use cannabis. 1. Cultivation of cannabis must not be visible from a public place by normal unaided vision. 2. No cultivator or processor of adult-use cannabis shall sell, or agree to sell or deliver in the state any cannabis products, as the case may be, except in sealed containers containing quantities in accordance with size standards pursuant to rules adopted by the office. Such containers shall have affixed thereto such labels as may be required by the rules of the office. 3. No cultivator or processor of adult-use cannabis shall furnish or cause to be furnished to any licensee, any exterior or interior sign, printed, painted, electric or otherwise, except as authorized by the office. The office may make such rules as it deems necessary to carry out the purpose and intent of this subdivision. 4. Cultivators of adult-use cannabis shall only use pesticides that are registered by the department of environmental conservation or that specifically meet the United States environmental protection agency registration exemption criteria for minimum risk pesticides, and only in compliance with regulations, standards and guidelines issued by the department of environmental conservation. 5. No cultivator or processor of adult-use cannabis shall transport cannabis products in any vehicle owned and operated or hired and oper- ated by such cultivator or processor, unless there shall be attached to or inscribed upon both sides of such vehicle a sign, showing the name and address of the licensee, together with the following inscription: "New York State Cannabis Cultivator (or Processor) License No. _____" in uniform letters not less than three and one-half inches in height. In lieu of such sign a cultivator or processor may have in the cab of such vehicle a photostatic copy of its current license issued by the office, and such copy duly authenticated by the office. 6. No cultivator or processor of adult-use cannabis shall deliver any cannabis products, except in vehicles owned and operated by such culti- vator, processor, or hired and operated by such cultivator or processor from a trucking or transportation company registered with the office, and shall only make deliveries at the licensed premises of the purchas- er. 7. No cultivator or processor of adult-use cannabis, including an adult-use cannabis cooperative or microbusiness cultivator, may offer any incentive, payment or other benefit to a licensed cannabis retail dispensary in return for carrying the cultivator, processor, cooperative or microbusiness cultivator's products, or preferential shelf placement. S. 1509 137 A. 2009 8. All cannabis products shall be processed in accordance with good manufacturing processes, pursuant to Part 111 of Title 21 of the Code of Federal Regulations, as may be modified by the executive director in regulation. 9. No processor of adult-use cannabis shall produce any product which, in the discretion of the office, is designed to appeal to anyone under the age of twenty-one years. 10. The use or integration of alcohol or nicotine in cannabis products is strictly prohibited. § 81. Provisions governing the distribution of adult-use cannabis. 1. No distributor shall sell, or agree to sell or deliver any cannabis products, as the case may be, in any container, except in a sealed pack- age. Such containers shall have affixed thereto such labels as may be required by the rules of the office. 2. No distributor shall deliver any cannabis products, except in vehi- cles owned and operated by such distributor, or hired and operated by such distributor from a trucking or transportation company registered with the office, and shall only make deliveries at the licensed premises of the purchaser. 3. Each distributor shall keep and maintain upon the licensed prem- ises, adequate books and records of all transactions involving the busi- ness transacted by such distributor, which shall show the amount of cannabis products purchased by such distributor together with the names, license numbers and places of business of the persons from whom the same was purchased and the amount involved in such purchases, as well as the amount of cannabis products sold by such distributor together with the names, addresses, and license numbers of such purchasers. Each sale shall be recorded separately on a numbered invoice, which shall have printed thereon the number, the name of the licensee, the address of the licensed premises, and the current license number. Such distributor shall deliver to the purchaser a true duplicate invoice stating the name and address of the purchaser, the quantity of cannabis products, description by brands and the price of such cannabis products, and a true, accurate and complete statement of the terms and conditions on which such sale is made. Such books, records and invoices shall be kept for a period of five years and shall be available for inspection by any authorized representative of the office. 4. No distributor shall furnish or cause to be furnished to any licen- see, any exterior or interior sign, printed, painted, electric or other- wise, unless authorized by the office. 5. No distributor shall provide any discount, rebate or customer loyalty program to any licensed retailer, except as otherwise allowed by the office. 6. The executive director is authorized to promulgate regulations establishing a maximum margin for which a distributor may mark up a cannabis product for sale to a retail dispensary. Any adult-use cannabis product sold by a distributor for more than the maximum markup allowed in regulation, shall be unlawful. 7. Each distributor shall keep and maintain upon the licensed prem- ises, adequate books and records to demonstrate the distributor's actual cost of doing business, using accounting standards and methods regularly employed in the determination of costs for the purpose of federal income tax reporting, for the total operation of the licensee. Such books, records and invoices shall be kept for a period of five years and shall be available for inspection by any authorized representative of the S. 1509 138 A. 2009 office for use in determining the maximum markup allowed in regulation pursuant to subdivision six of this section. § 82. Provisions governing adult-use cannabis retail dispensaries. 1. No cannabis retail licensee shall sell, deliver, or give away or cause or permit or procure to be sold, delivered or given away any cannabis to any person, actually or apparently, under the age of twenty-one years, any visibly intoxicated person, or any habitually intoxicated person known to be such by the person authorized to sell, deliver, or give away any cannabis. 2. No cannabis retail licensee shall sell more than one ounce of cannabis per cannabis consumer per day; nor more than five grams of cannabis concentrate per cannabis consumer per day. 3. No cannabis retail licensee shall sell alcoholic beverages, nor have or possess a license or permit to sell alcoholic beverages, on the same premises where cannabis products are sold. 4. No sign of any kind printed, painted or electric, advertising any brand shall be permitted on the exterior or interior of such premises, except by permission of the office. 5. No cannabis retail licensee shall sell or deliver any cannabis products to any person with knowledge of, or with reasonable cause to believe, that the person to whom such cannabis products are being sold, has acquired the same for the purpose of peddling them from place to place, or of selling or giving them away in violation of the provisions of this chapter or in violation of the rules and regulations of the office. 6. All premises licensed under this section shall be subject to inspection by any peace officer described in subdivision four of section 2.10 of the criminal procedure law acting pursuant to his or her special duties, or police officer or any duly authorized representative of the office, during the hours when the said premises are open for the trans- action of business. 7. No cannabis retail licensee shall be interested, directly or indi- rectly, in any cultivator, processor or distributor licensed pursuant to this article, by stock ownership, interlocking directors, mortgage or lien on any personal or real property or by any other means. Any lien, mortgage or other interest or estate, however, now held by such retailer on or in the personal or real property of such manufacturer or distribu- tor, which mortgage, lien, interest or estate was acquired on or before December thirty-first, two thousand eighteen, shall not be included within the provisions of this subdivision; provided, however, the burden of establishing the time of the accrual of the interest comprehended by this subdivision, shall be upon the person who claims to be entitled to the protection and exemption afforded hereby. 8. No cannabis retail licensee shall make or cause to be made any loan to any person engaged in the cultivation, processing or distribution of cannabis pursuant to this article. 9. Each cannabis retail licensee shall designate the price of each item of cannabis by attaching to or otherwise displaying immediately adjacent to each such item displayed in the interior of the licensed premises where sales are made a price tag, sign or placard setting forth the price at which each such item is offered for sale therein. 10. No person licensed to sell cannabis products at retail, shall allow or permit any gambling, or offer any gambling on the licensed premises, or allow or permit illicit drug activity on the licensed prem- ises. The use of the licensed premises or any part thereof for the sale S. 1509 139 A. 2009 of lottery tickets, when duly authorized and lawfully conducted thereon, shall not constitute gambling within the meaning of this subdivision. 11. If an employee of a cannabis retail licensee suspects that a cannabis consumer may be abusing cannabis, such an employee shall have a duty to encourage such cannabis consumer to seek the help of a regis- tered practitioner and become a certified patient. Cannabis retail licensees shall develop standard operating procedures and written mate- rials for employees to utilize when consulting consumers for purposes of this subdivision. 12. The executive director is authorized to promulgate regulations governing licensed adult-use dispensing facilities, including but not limited to, the hours of operation, size and location of the licensed facility, potency and types of products offered and establishing a mini- mum margin for which a retail dispensary must markup a cannabis product(s) before selling to a cannabis consumer. Any adult-use cannabis product sold by a retail dispensary for less than the minimum markup allowed in regulation, shall be unlawful. § 83. Adult-use cannabis advertising. 1. The office is hereby author- ized to promulgate rules and regulations governing the advertising of licensed adult-use cannabis cultivators, processors, cooperatives, distributors, retailers, and any cannabis related products or services. 2. The office shall promulgate explicit rules prohibiting advertising that: (a) is false, deceptive, or misleading; (b) promotes overconsumption; (c) depicts consumption by children or other minors; (d) is designed in any way to appeal to children or other minors; (e) is within two hundred feet of the perimeter of a school grounds, playground, child care center, public park, or library; (f) is in public transit vehicles and stations; (g) is in the form of an unsolicited internet pop-up; (h) is on publicly owned or operated property; or (i) makes medical claims or promotes adult-use cannabis for a medical or wellness purpose. 3. The office shall promulgate explicit rules prohibiting all market- ing strategies and implementation including, but not limited to, brand- ing, packaging, labeling, location of cannabis retailers, and advertise- ments that are designed to: (a) appeal to persons less then twenty-one years of age; or (b) disseminate false or misleading information to customers. 4. The office shall promulgate explicit rules requiring that: (a) all advertisements and marketing accurately and legibly identify the licensee responsible for its content; and (b) any broadcast, cable, radio, print and digital communications advertisements only be placed where the audience is reasonably expected to be twenty-one years of age or older, as determined by reliable, up-to-date audience composition data. § 84. Minority, women-owned businesses and disadvantaged farmers; incubator program. 1. The office shall implement a social and economic equity plan and actively promote racial, ethnic, and gender diversity when issuing licenses for adult-use cannabis related activities, includ- ing by prioritizing consideration of applications by applicants who qualify as a minority and women-owned business or disadvantaged farmers. Such qualifications shall be determined by the office in regulation. S. 1509 140 A. 2009 2. The office shall create a social and economic equity plan to promote diversity in ownership and employment in the adult-use cannabis industry and ensure inclusion of: (a) minority-owned businesses; (b) women-owned businesses; (c) minority and women-owned businesses, as defined in subdivision five of this section; and (d) disadvantaged farmers, as defined in subdivision five of this section. 3. The social and economic equity plan shall consider additional criteria in its licensing determinations. Under the social and economic equity plan, extra weight shall be given to applications that demon- strate that an applicant: (a) is a member of a community group that has been disproportionately impacted by the enforcement of cannabis prohibition; (b) has an income lower than eighty percent of the median income of the county in which the applicant resides; and (c) was convicted of a cannabis-related offense prior to the effective date of this chapter. 4. The office shall also create an incubator program to provide direct support to social and economic equity applicants after they have been granted licenses. The program shall provide direct support in the form of counseling services, education, small business coaching, and compli- ance assistance. 5. For the purposes of this section, the following definitions shall apply: (a) "minority-owned business" shall mean a business enterprise, including a sole proprietorship, partnership, limited liability company or corporation that is: (i) at least fifty-one percent owned by one or more minority group members; (ii) an enterprise in which such minority ownership is real, substan- tial and continuing; (iii) an enterprise in which such minority ownership has and exercises the authority to control independently the day-to-day business decisions of the enterprise; (iv) an enterprise authorized to do business in this state and inde- pendently owned and operated; and (v) an enterprise that is a small business. (b) "minority group member" shall mean a United States citizen or permanent resident alien who is and can demonstrate membership in one of the following groups: (i) black persons having origins in any of the black African racial groups; (ii) Hispanic persons of Mexican, Puerto Rican, Dominican, Cuban, Central or South American of either Indian or Hispanic origin, regard- less of race; (iii) Native American or Alaskan native persons having origins in any of the original peoples of North America; or (iv) Asian and Pacific Islander persons having origins in any of the far east countries, south east Asia, the Indian subcontinent or the Pacific islands. (c) "women-owned business" shall mean a business enterprise, including a sole proprietorship, partnership, limited liability company or corpo- ration that is: S. 1509 141 A. 2009 (i) at least fifty-one percent owned by one or more United States citizens or permanent resident aliens who are women; (ii) an enterprise in which the ownership interest of such women is real, substantial and continuing; (iii) an enterprise in which such women ownership has and exercises the authority to control independently the day-to-day business decisions of the enterprise; (iv) an enterprise authorized to do business in this state and inde- pendently owned and operated; and (v) an enterprise that is a small business. (d) a firm owned by a minority group member who is also a woman may be defined as a minority-owned business, a women-owned business, or both. (e) "disadvantaged farmer" shall mean a New York state resident or business enterprise, including a sole proprietorship, partnership, limited liability company or corporation, that has reported at least two-thirds of its federal gross income as income from farming, in at least one of the past five preceding tax years, and who: (i) farms in a county that has greater than ten percent rate of pover- ty according to the latest U.S. Census Bureau's American Communities Survey; (ii) has been disproportionately impacted by low commodity prices or faces the loss of farmland through development or suburban sprawl; and (iii) meets any other qualifications as defined in regulation by the office. 6. The office shall actively promote applicants that foster racial, ethnic, and gender diversity in their workforce. 7. Licenses issued to minority and women-owned businesses or under the social and economic equity plan shall not be transferable except to qualified minority and women-owned businesses or social and economic equity applicants and only upon prior written approval of the executive director. 8. The office shall collect demographic data on owners and employees in the adult-use cannabis industry and shall annually publish such data. § 85. Collective bargaining. 1. The executive director shall require all licensees under this article with more than twenty-five employees, including registered organizations authorized pursuant to section forty of this chapter to cultivate, process, distribute and sell adult-use cannabis products, to enter into a bona-fide collective bargaining agreement with a bona-fide labor organization. 2. The maintenance of such a collective bargaining agreement shall be an ongoing material condition of the entity's license. § 86. Regulations. The executive director shall make regulations to implement this article. ARTICLE 5 HEMP CANNABIS Section 90. Cannabinoid related hemp licensing. 91. Cannabinoid grower licenses. 92. Cannabinoid extractor license. 93. Cannabinoid license applications. 94. Information to be requested in applications for licenses. 95. Fees. 96. Selection criteria. 97. Limitations of licensure; duration. 98. License renewal. S. 1509 142 A. 2009 99. Form of license. 100. Amendments to license and duty to update information submitted for licensing. 101. Record keeping and tracking. 102. Inspections and ongoing requirements. 103. Packaging and labeling of hemp cannabis. 104. Provisions governing the growing and extracting of hemp cannabis. 105. Laboratory testing. 106. Advertising. 107. Research. 108. Regulations. § 90. Cannabinoid related hemp licensing. 1. Persons growing, proc- essing, extracting, and/or manufacturing hemp cannabis or producing hemp cannabis products distributed, sold or marketed for cannabinoid content and used or intended for human or animal consumption or use, shall be required to obtain the following license or licenses from the office, depending upon the operation: (a) cannabinoid grower license and/or; (b) cannabinoid extractor license. 2. Notwithstanding subsection one of this section, those persons grow- ing, processing or manufacturing food or food ingredients from hemp, which food or food ingredients are generally recognized as safe, shall be subject to regulation and/or licensing under the agriculture and markets law. § 91. Cannabinoid grower licenses. 1. A cannabinoid grower's license authorizes the acquisition, possession, cultivation and sale of hemp cannabis grown or used for its cannabinoid content on the licensed prem- ises of the grower. 2. A person holding a cannabinoid grower's license shall not sell hemp products marketed, distributed or sold for its cannabinoid content and intended for human consumption or use without also being licensed as an extractor pursuant to this article. 3. Persons growing industrial hemp pursuant to article twenty-nine of the agriculture and markets law are not authorized to and shall not sell hemp cannabis for human or animal consumption or use, other than as food or a food ingredient that has been generally recognized as safe in accordance with the U.S. food and drug administration or determined by the state to be safe for human consumption as food or a food ingredient. 4. A person licensed under article twenty-nine of the agriculture and markets law as a hemp grower may apply for a cannabinoid grower's license provided that it can demonstrate to the office that its culti- vation of hemp meets all the requirements for hemp cultivated under a cannabinoid grower's license. § 92. Cannabinoid extractor license. 1. A cannabinoid extractor license authorizes the licensee's acquisition, possession, extraction and manufacture of hemp from a licensed cannabinoid grower for the proc- essing of hemp or the production of hemp products marketed, distributed or sold for cannabinoid content and used or intended for human or animal consumption or use. 2. No cannabinoid extractor licensee shall engage in any other busi- ness on the licensed premises; except that nothing contained in this chapter shall prevent a cannabinoid extractor licensee from also being licensed as a cannabinoid grower on the same premises. S. 1509 143 A. 2009 3. Notwithstanding subdivisions one and two of this section, nothing shall prevent a cannabinoid extractor from manufacturing hemp products not used or intended for human or animal consumption or use. § 93. Cannabinoid license applications. 1. Persons shall apply for a cannabinoid grower license and/or a cannabinoid extractor license by submitting an application upon a form supplied by the office, providing all the requested information, verified by the applicant or an author- ized representative of the applicant. 2. A separate license shall be required for each facility at which growing or extracting is conducted. 3. Each application shall remit with its application the fee for each requested license. § 94. Information to be requested in applications for licenses. 1. The office shall have the authority to prescribe the manner and form in which an application must be submitted to the office for licensure under this article. 2. The executive director is authorized to adopt regulations, includ- ing by emergency rule, establishing information which must be included on an application for licensure under this article. Such information may include, but is not limited to: information about the applicant's iden- tity, including racial and ethnic diversity; ownership and investment information, including the corporate structure; evidence of good moral character, including the submission of fingerprints by the applicant to the division of criminal justice services; information about the prem- ises to be licensed; financial statements; and any other information prescribed by in regulation. 3. All license applications shall be signed by the applicant (if an individual), by a managing partner (if a limited liability corporation), by an officer (if a corporation), or by all partners (if a partnership). Each person signing such application shall verify it or affirm it as true under the penalties of perjury. 4. All license or permit applications shall be accompanied by a check, draft or other forms of payment as the office may require or authorize in the amount required by this article for such license or permit. 5. If there be any change, after the filing of the application or the granting of a license, in any of the facts required to be set forth in such application, a supplemental statement giving notice of such change, cost and source of money involved in the change, duly verified, shall be filed with the office within ten days after such change. Failure to do so shall, if willful and deliberate, be cause for revocation of the license. 6. In giving any notice, or taking any action in reference to a licen- see of a licensed premises, the office may rely upon the information furnished in such application and in any supplemental statement connected therewith, and such information may be presumed to be correct, and shall be binding upon a registered organization, licensee or licensed premises as if correct. All information required to be furnished in such application or supplemental statements shall be deemed material in any prosecution for perjury, any proceeding to revoke, cancel or suspend any license, and in the office's determination to approve or deny the license. 7. The office may, in its discretion, waive the submission of any category of information described in this section for any category of license or permit, provided that it shall not be permitted to waive the requirement for submission of any such category of information solely for an individual applicant or applicants. S. 1509 144 A. 2009 § 95. Fees. The office shall have the authority to charge licensees a biennial license fee. Such fee may be based on the amount of hemp canna- bis to be grown, processed or extracted by the licensee, the gross annu- al receipts of the licensee for the previous license period, or any other factors deemed appropriate by the office. § 96. Selection criteria. 1. An applicant shall furnish evidence: (a) its ability to effectively maintain a delta-9-tetrahydrocannabinol concentration that does not exceed a percentage of delta-9-tetrahydro- cannabinol cannabis set by the executive director on a dry weight basis of any part of the plant of the genus cannabis, or per volume or weight of cannabis product, or the combined percent of delta-9-tetrahydrocanna- binol and tetrahydrocannabinolic acid in any part of the plant of the genus cannabis regardless of moisture content, for all hemp cannabis and hemp derived products cultivated, processed or extracted by the appli- cant; (b) its ability to comply with all applicable state laws and regu- lations, including, without limitation, the provisions of article four- teen of the agriculture and markets law; (c) that the applicant is ready, willing and able to properly carry on the activities for which a license is sought; and (d) that the applicant is in possession of or has the right to use land, buildings and equipment sufficient to properly carry on the activ- ity described in the application. 2. The office, in considering whether to grant the license applica- tion, shall consider whether: (a) it is in the public interest that such license be granted, taking into consideration whether the number of licenses will be adequate or excessive to reasonably serve demand; (b) the applicant and its managing officers are of good moral charac- ter and do not have an ownership or controlling interest in more licenses or permits than allowed by this chapter; and (c) the applicant satisfies any other conditions as determined by the office. 3. If the executive director is not satisfied that the applicant should be issued a license, the executive director shall notify the applicant in writing of the specific reason or reasons for denial. 4. The executive director shall have authority and sole discretion to determine the number of licenses issued pursuant to this article. § 97. Limitations of licensure; duration. 1. No license pursuant to this article may be issued to a person under the age of twenty-one years. 2. The office shall have the authority to limit, by canopy, plant count or other means, the amount of hemp cannabis allowed to be culti- vated, processed, extracted or sold by a licensee. 3. All licenses under this article shall expire two years after the date of issue and be subject to any rules or limitations prescribed by the executive director in regulation. § 98. License renewal. 1. Each license, issued pursuant to this arti- cle, may be renewed upon application therefor by the licensee and the payment of the fee for such license as prescribed by this article. 2. In the case of applications for renewals, the office may dispense with the requirements of such statements as it deems unnecessary in view of those contained in the application made for the original license, but in any event the submission of photographs of the licensed premises shall be dispensed with, provided the applicant for such renewal shall S. 1509 145 A. 2009 file a statement with the office to the effect that there has been no alteration of such premises since the original license was issued. 3. The office may make such rules as may be necessary, not inconsist- ent with this chapter, regarding applications for renewals of licenses and permits and the time for making the same. 4. The office shall provide an application for renewal of a license issued under this article not less than ninety days prior to the expira- tion of the current license. 5. The office may only issue a renewal license upon receipt of the prescribed renewal application and renewal fee from a licensee if, in addition to the criteria in section ninety-four of this article, the license's license is not under suspension and has not been revoked. 6. The office shall have the authority to charge applicants for licen- sure under this article a non-refundable application fee. Such fee may be based on the type of licensure sought, cultivation and/or production volume, or any other factors deemed reasonable and appropriate by the office to achieve the policy and purpose of this chapter. § 99. Form of license. Licenses issued pursuant to this article shall specify: 1. the name and address of the licensee; 2. the activities permitted by the license; 3. the land, buildings and facilities that may be used for the licensed activities of the licensee; 4. a unique license number issued by the office to the licensee; and 5. such other information as the executive director shall deem neces- sary to assure compliance with this chapter. § 100. Amendments to license and duty to update information submitted for licensing. 1. Upon application of a licensee to the office, a license may be amended to allow the licensee to relocate within the state, to add or delete licensed activities or facilities, or to amend the ownership or organizational structure of the entity that is the licensee. The fee for such amendment shall be two hundred fifty dollars. 2. In the event that any of the information provided by the applicant changes either while the application is pending or after the license is granted, within ten days of any such change, the applicant or licensee shall submit to the office a verified statement setting forth the change in circumstances of facts set forth in the application. Failure to do so shall, if willful and deliberate, be cause for revocation of the license. 3. A license shall become void by a change in ownership, substantial corporate change or location without prior written approval of the exec- utive director. The executive director may promulgate regulations allowing for certain types of changes in ownership without the need for prior written approval. 4. For purposes of this section, "substantial corporate change" shall mean: (a) for a corporation, a change of eighty percent or more of the offi- cers and/or directors, or a transfer of eighty percent or more of stock of such corporation, or an existing stockholder obtaining eighty percent or more of the stock of such corporation; and (b) for a limited liability company, a change of eighty percent or more of the managing members of the company, or a transfer of eighty percent or more of ownership interest in said company, or an existing member obtaining a cumulative of eighty percent or more of the ownership interest in said company. S. 1509 146 A. 2009 § 101. Record keeping and tracking. 1. The executive director shall, by regulation, require each licensee pursuant to this article to adopt and maintain security, tracking, record keeping, record retention and surveillance systems, relating to all hemp cannabis at every stage of acquiring, possession, manufacture, transport, sale, or delivery, or distribution by the licensee, subject to regulations of the executive director. 2. Every licensee shall keep and maintain upon the licensed premises, adequate books and records of all transactions involving the licensee and sale of its products, which shall include all information required by rules promulgated by the office. 3. Each sale shall be recorded separately on a numbered invoice, which shall have printed thereon the number, the name of the licensee, the address of the licensed premises, and the current license number. 4. Such books, records and invoices shall be kept for a period of five years and shall be available for inspection by any authorized represen- tative of the office. § 102. Inspections and ongoing requirements. All licensees shall be subject to reasonable inspection by the office, and a person who holds a license must make himself or herself, or an agent thereof, available and present for any inspection required by the office. The office shall make reasonable accommodations so that ordinary business is not interrupted and safety and security procedures are not compromised by the inspection. § 103. Packaging and labeling of hemp cannabis. 1. The office is hereby authorized to promulgate rules and regulations governing the packaging and labeling of hemp cannabis products, sold or possessed for sale in New York state. 2. Such regulations shall include, but not be limited to, requiring labels warning consumers of any potential impact on human health result- ing from the consumption of hemp cannabis products that shall be affixed to those products when sold, if such labels are deemed warranted by the office. 3. Such rules and regulations shall establish methods and procedures for determining, among other things, serving sizes for hemp cannabis products, active cannabinoid concentration per serving size, and number of servings per container. Such regulations shall also require a nutri- tional fact panel that incorporates data regarding serving sizes and potency thereof. 4. The packaging, sale, or possession by any licensee of any hemp product intended for human or animal consumption or use not labeled or offered in conformity with rules and regulations promulgated in accord- ance with this section shall be grounds for the imposition of a fine, and/or the suspension, revocation or cancellation of a license. § 104. Provisions governing the growing and extracting of hemp canna- bis. 1. No licensed cannabinoid grower or extractor shall sell, or agree to sell or deliver in the state any hemp cannabis products, as the case may be, except in sealed containers containing quantities in accordance with size standards pursuant to rules adopted by the office. Such containers shall have affixed thereto such labels as may be required by the rules of the office. 2. Licensed cannabinoid growers shall only use pesticides that are registered by the New York state department of environmental conserva- tion or that specifically meet the United States Environmental Protection Agency registration exemption criteria for minimum risk S. 1509 147 A. 2009 pesticides, and only in compliance with regulations, standards and guidelines issued by the department of environmental conservation. 3. All hemp cannabis products shall be extracted and manufactured in accordance with good manufacturing processes, pursuant to Part 111 of Title 21 of the Code of Federal Regulations as may be modified by the executive director in regulation. 4. The use or integration of alcohol or nicotine in hemp cannabis products is strictly prohibited. § 105. Laboratory testing. 1. Every cannabinoid extractor shall contract with an independent laboratory to test the cannabis products produced by the licensed extractor. The executive director, in consulta- tion with the commissioner of health, shall approve the laboratory and require that the laboratory report testing results in a manner deter- mined by the executive director. The executive director is authorized to issue regulations requiring the laboratory to perform certain tests and services. 2. Cannabinoid extractors shall make laboratory test reports available to persons holding a cannabinoid permit pursuant to article six of this chapter for all cannabis products manufactured by the licensee. 3. On-site laboratory testing by licensees is permissible; however, such testing shall not be certified by the office and does not exempt the licensee from the requirements of quality assurance testing at a testing laboratory pursuant to this section. § 106. Advertising. The office shall promulgate rules and regulations governing the advertising of hemp cannabis and any other related products or services as determined by the executive director. § 107. Research. 1. The office shall promote research and development through public-private partnerships to bring new hemp cannabis and industrial hemp derived products to market within the state. 2. The executive director may develop and carry out research programs relating to industrial hemp and hemp cannabis. § 108. Regulations. The executive director shall make regulations to implement this article. ARTICLE 6 GENERAL PROVISIONS Section 125. General prohibitions and restrictions. 126. License to be confined to premises licensed; premises for which no license shall be granted; transporting cannabis. 127. Protections for the use of cannabis; unlawful discrimi- nations prohibited. 128. Registrations and licenses. 129. Laboratory testing permit. 130. Special use permits. 131. Professional and medical record keeping. 132. County opt-out; municipal control and preemption. 133. Executive director to be necessary party to certain proceedings. 134. Penalties for violation of this chapter. 135. Revocation of registrations, licenses and permits for cause; procedure for revocation or cancellation. 136. Lawful actions pursuant to this chapter. 137. Review by courts. 138. Illicit cannabis. S. 1509 148 A. 2009 139. Injunction for unlawful manufacture, sale or consumption of cannabis. 140. Persons forbidden to traffic cannabis products; certain officials not to be interested in manufacture or sale of cannabis products. 141. Access to criminal history information through the division of criminal justice services. § 125. General prohibitions and restrictions. 1. No person shall cultivate, process, or distribute for sale or sell at wholesale or retail any cannabis, cannabis product, medical cannabis or hemp cannabis product within the state without obtaining the appropriate registration, license, or permit therefor required by this chapter. 2. No registered organization, licensee, or permittee shall sell, or agree to sell or deliver in this state any cannabis or hemp cannabis for the purposes of resale to any person who is not duly registered, licensed or permitted pursuant to this chapter to sell such product, at wholesale or retail, as the case may be, at the time of such agreement and sale. 3. No registered organization, licensee, or permittee shall employ, or permit to be employed, or shall allow to work, on any premises regis- tered or licensed for retail sale hereunder, any person under the age of eighteen years in any capacity where the duties of such person require or permit such person to sell, dispense or handle cannabis or hemp cannabis. 4. No registered organization, licensee, or permittee shall sell, deliver or give away, or cause, permit or procure to be sold, delivered or given away any cannabis, cannabis product, medical cannabis or hemp cannabis on credit; except that a registered organization, licensee or permittee may accept third party credit cards for the sale of any canna- bis, cannabis product, medical cannabis or hemp cannabis for which it is registered, licensed or permitted to dispense or sell to patients or cannabis consumers. This includes, but is not limited to, any consign- ment sale of any kind. 5. No registered organization, licensee, or permittee shall cease to be operated as a bona fide or legitimate premises within the contem- plation of the registration, license, or permit issued for such prem- ises, as determined within the judgment of the office. 6. No registered organization, licensee, or permittee shall refuse, nor any person holding a registration, license, or permit refuse, nor any officer or director of any corporation or organization holding a registration, license, or permit refuse, to appear and/or testify under oath at an inquiry or hearing held by the office, with respect to any matter bearing upon the registration, license, or permit, the conduct of any people at the licensed premises, or bearing upon the character or fitness of such registrant, licensee, or permittee to continue to hold any registration, license, or permit. Nor shall any of the above offer false testimony under oath at such inquiry or hearing. 7. No registered organization, licensee, or permittee shall engage, participate in, or aid or abet any violation or provision of this chap- ter, or the rules or regulations of the office. 8. The proper conduct of registered, licensed, or permitted premises is essential to the public interest. Failure of a registered organiza- tion, licensee, or permittee to exercise adequate supervision over the registered, licensed, or permitted location poses a substantial risk not only to the objectives of this chapter but imperils the health, safety, and welfare of the people of this state. It shall be the obligation of S. 1509 149 A. 2009 each person registered, licensed, or permitted under this chapter to ensure that a high degree of supervision is exercised over any and all conduct at any registered, licensed, or permitted location at any and all times in order to safeguard against abuses of the privilege of being registered, licensed, or permitted, as well as other violations of law, statute, rule, or regulation. Persons registered, licensed, or permitted shall be held strictly accountable for any and all violations that occur upon any registered, licensed, or permitted premises, and for any and all violations committed by or permitted by any manager, agent or employee of such registered, licensed, or permitted person. 9. It shall be unlawful for any person, partnership or corporation operating a place for profit or pecuniary gain, with a capacity for the assemblage of twenty or more persons to permit a person or persons to come to the place of assembly for the purpose of cultivating, process- ing, distributing, or retail distribution or sale of cannabis on said premises. This includes, but is not limited, to, cannabis that is either provided by the operator of the place of assembly, his agents, servants or employees, or cannabis that is brought onto said premises by the person or persons assembling at such place, unless an appropriate regis- tration, license, or permit has first been obtained from the office of cannabis management by the operator of said place of assembly. 10. As it is a privilege under the law to be registered, licensed, or permitted to cultivate, process, distribute, traffic, or sell cannabis, the office may impose any such further restrictions upon any registrant, licensee, or permittee in particular instances as it deems necessary to further state policy and best serve the public interest. A violation or failure of any person registered, licensed, or permitted to comply with any condition, stipulation, or agreement, upon which any registration, license, or permit was issued or renewed by the office shall subject the registrant, licensee, or permittee to suspension, cancellation, revoca- tion, and/or civil penalties as determined by the office. 11. No adult-use cannabis or medical cannabis may be imported to, or exported out of, New York state by a registered organization, licensee or person holding a license and/or permit pursuant to this chapter, until such time as it may become legal to do so under federal law. Should it become legal to do so under federal law, the office is granted the power to promulgate such rules and regulations as it deems necessary to protect the public and the policy of the state. 12. No registered organization, licensee or any of its agents, serv- ants or employees shall peddle any cannabis product, medical cannabis or hemp cannabis from house to house by means of a truck or otherwise, where the sale is consummated and delivery made concurrently at the residence or place of business of a cannabis consumer. This subdivision shall not prohibit the delivery by a registered organization to certi- fied patients or their designated caregivers, pursuant to article three of this chapter. 13. No licensee shall employ any canvasser or solicitor for the purpose of receiving an order from a certified patient, designated care- giver or cannabis consumer for any cannabis product, medical cannabis or hemp cannabis at the residence or place of business of such patient, caregiver or consumer, nor shall any licensee receive or accept any order, for the sale of any cannabis product, medical cannabis or hemp cannabis which shall be solicited at the residence or place of business of a patient, caregiver or consumer. This subdivision shall not prohibit the solicitation by a distributor of an order from any licensee at the licensed premises of such licensee. S. 1509 150 A. 2009 14. No premises registered, licensed, or permitted by the office shall: (a) permit or allow any gambling on the premises; (b) permit or allow the premises to become disorderly; (c) permit or allow the use, by any person, of any fireworks or other pyrotechnics on the premises; or (d) permit or allow to appear as an entertainer, on any part of the premises registered, licensed, or permitted, any person under the age of eighteen years. § 126. License to be confined to premises licensed; premises for which no license shall be granted; transporting cannabis. 1. A registration, license, or permit issued to any person, pursuant to this chapter, for any registered, licensed, or permitted premises shall not be transfera- ble to any other person, to any other location or premises, or to any other building or part of the building containing the licensed premises except in the discretion of the office. All privileges granted by any registration, license, or permit shall be available only to the person therein specified, and only for the premises licensed and no other except if authorized by the office. Provided, however, that the provisions of this section shall not be deemed to prohibit the amendment of a registration or license as provided for in this chapter. A violation of this section shall subject the registration, license, or permit to revocation for cause. 2. Where a registration or license for premises has been revoked, the office in its discretion may refuse to issue a registration, license, or permit under this chapter, for a period of up to five years after such revocation, for such premises or for any part of the building containing such premises and connected therewith. 3. In determining whether to issue such a proscription against grant- ing any registration, license, or permit for such five-year period, in addition to any other factors deemed relevant to the office, the office shall, in the case of a license revoked due to the illegal sale of cannabis to a minor, determine whether the proposed subsequent licensee has obtained such premises through an arm's length transaction, and, if such transaction is not found to be an arm's length transaction, the office shall deny the issuance of such license. 4. For purposes of this section, "arm's length transaction" shall mean a sale of a fee of all undivided interests in real property, lease, management agreement, or other agreement giving the applicant control over the cannabis at the premises, or any part thereof, in the open market, between an informed and willing buyer and seller where neither is under any compulsion to participate in the transaction, unaffected by any unusual conditions indicating a reasonable possibility that the sale was made for the purpose of permitting the original licensee to avoid the effect of the revocation. The following sales shall be presumed not to be arm's length transactions unless adequate documentation is provided demonstrating that the sale, lease, management agreement, or other agreement giving the applicant control over the cannabis at the premises, was not conducted, in whole or in part, for the purpose of permitting the original licensee to avoid the effect of the revocation: (a) a sale between relatives; (b) a sale between related companies or partners in a business; or (c) a sale, lease, management agreement, or other agreement giving the applicant control over the cannabis at the premises, affected by other facts or circumstances that would indicate that the sale, lease, manage- ment agreement, or other agreement giving the applicant control over the S. 1509 151 A. 2009 cannabis at the premises, is entered into for the primary purpose of permitting the original licensee to avoid the effect of the revocation. 5. No registered organization, licensee or permittee shall transport cannabis products or medical cannabis except in vehicles owned and oper- ated by such registered organization, licensee or permittee, or hired and operated by such registered organization, licensee or permittee from a trucking or transportation company permitted and registered with the office. 6. No common carrier or person operating a transportation facility in this state, other than the United States government, shall receive for transportation or delivery within the state any cannabis products or medical cannabis unless the shipment is accompanied by copy of a bill of lading, or other document, showing the name and address of the consig- nor, the name and address of the consignee, the date of the shipment, and the quantity and kind of cannabis products or medical cannabis contained therein. § 127. Protections for the use of cannabis; unlawful discriminations prohibited. 1. No person, registered organization, licensee or permit- tee shall be subject to arrest, prosecution, or penalty in any manner, or denied any right or privilege, including but not limited to civil liability or disciplinary action by a business or occupational or professional licensing board or office, solely for conduct permitted under this chapter. For the avoidance of doubt, the appellate division of the supreme court of the state of New York, and any disciplinary or character and fitness committees established by them are occupational and professional licensing boards within the meaning of this section. State or local law enforcement agencies shall not cooperate with or provide assistance to the government of the United States or any agency thereof in enforcing the federal controlled substances act, 21 U.S.C. et seq., solely for actions consistent with this chapter, except as pursu- ant to a valid court order. 2. No school or landlord may refuse to enroll or lease to and may not otherwise penalize a person solely for conduct allowed under this chap- ter, except as exempted: (a) if failing to do so would cause the school or landlord to lose a monetary or licensing related benefit under federal law or regulations; (b) if the institution has adopted a code of conduct prohibiting cannabis use on the basis of religious belief; or (c) if a property is registered with the New York smoke-free housing registry, it is not required to permit the smoking of cannabis products on its premises. 3. For the purposes of medical care, including organ transplants, a certified patient's authorized use of medical cannabis must be consid- ered the equivalent of the use of any other medication under the direc- tion of a practitioner and does not constitute the use of an illicit substance or otherwise disqualify a registered qualifying patient from medical care. 4. Unless an employer establishes that the lawful use of cannabis has impaired the employee's ability to perform the employee's job responsi- bilities, it shall be unlawful to take any adverse employment action against an employee based on conduct allowed under this chapter. 5. For the purposes of this section, an employer may consider an employee's ability to perform the employee's job responsibilities to be impaired when the employee manifests specific articulable symptoms while working that decrease or lessen the employee's performance of the duties or tasks of the employee's job position. S. 1509 152 A. 2009 6. Nothing in this section shall restrict an employer's ability to prohibit or take adverse employment action for the possession or use of intoxicating substances during work hours, or require an employer to commit any act that would cause the employer to be in violation of federal law, or that would result in the loss of a federal contract or federal funding. 7. As used in this section, "adverse employment action" means refusing to hire or employ, barring or discharging from employment, requiring a person to retire from employment, or discriminating against in compen- sation or in terms, conditions, or privileges of employment. 8. A person currently under parole, probation or other state super- vision, or released on bail awaiting trial may not be punished or other- wise penalized for conduct allowed under this chapter. § 128. Registrations and licenses. 1. No registration or license shall be transferable or assignable except that notwithstanding any other provision of law, the registration or license of a sole proprietor converting to corporate form, where such proprietor becomes the sole stockholder and only officer and director of such new corporation, may be transferred to the subject corporation if all requirements of this chapter remain the same with respect to such registration or license as transferred and, further, the registered organization or licensee shall transmit to the office, within ten days of the transfer of license allowable under this subdivision, on a form prescribed by the office, notification of the transfer of such license. 2. No registration or license shall be pledged or deposited as collat- eral security for any loan or upon any other condition; and any such pledge or deposit, and any contract providing therefor, shall be void. 3. Licenses issued under this chapter shall contain, in addition to any further information or material to be prescribed by the rules of the office, the following information: (a) name of the person to whom the license is issued; (b) kind of license and what kind of traffic in cannabis is thereby permitted; (c) description by street and number, or otherwise, of licensed prem- ises; and (d) a statement in substance that such license shall not be deemed a property or vested right, and that it may be revoked at any time pursu- ant to law. § 129. Laboratory testing permit. 1. The executive director shall approve and permit one or more independent cannabis testing laboratories to test medical cannabis, adult-use cannabis and/or hemp cannabis. 2. To be permitted as an independent cannabis laboratory, a laboratory must apply to the office, on a form and in a manner prescribed by the office, and must demonstrate the following to the satisfaction of the executive director: (a) the owners and directors of the laboratory are of good moral char- acter; (b) the laboratory and its staff has the skills, resources and exper- tise needed to accurately and consistently perform all of the testing required for adult-use cannabis, medical cannabis and/or hemp cannabis; (c) the laboratory has in place and will maintain adequate policies, procedures, and facility security to ensure proper: collection, label- ing, accessioning, preparation, analysis, result reporting, disposal and storage of adult-use cannabis, medical cannabis and/or hemp cannabis; (d) the laboratory is physically located in New York state; S. 1509 153 A. 2009 (e) the laboratory has been approved by the department of health pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu- lations, pertaining to laboratories performing environmental analysis; and (f) the laboratory meets any and all requirements prescribed by this chapter and by the executive director in regulation. 3. The owner of a laboratory testing permit under this section shall not hold a registration or license in any category of this chapter and shall not have any direct or indirect ownership interest in such regis- tered organization or licensee. No board member, officer, manager, owner, partner, principal stakeholder or member of a registered organ- ization or licensee under this chapter, or such person's immediate fami- ly member, shall have an interest or voting rights in any laboratory testing permittee. 4. The executive director shall require that the permitted laboratory report testing results to the office in a manner, form and timeframe as determined by the executive director. 5. The executive director is authorized to promulgate regulations, in consultation with the commissioner of the department of health, requir- ing permitted laboratories to perform certain tests and services. § 130. Special Use Permits. The office is hereby authorized to issue the following kinds of permits for carrying on activities consistent with the policy and purpose of this chapter with respect to cannabis. The executive director has the authority to set fees for all permits issued pursuant to this section, to establish the periods during which permits are authorized, and to make rules and regulations, including emergency regulations, to implement this section. 1. Industrial cannabis permit - to purchase cannabis for use in the manufacture and sale of any of the following, when such cannabis is not otherwise suitable for consumption purposes, namely: (a) apparel, ener- gy, paper, and tools; (b) scientific, chemical, mechanical and indus- trial products; or (c) any other industrial use as determined by the executive director in regulation. 2. Nursery permit - to produce clones, immature plants, seeds, and other agricultural products used specifically for the planting, propa- gation, and cultivation of cannabis, and to sell such to licensed adult-use cultivators, registered organizations, and certified patients or their designated caregivers. 3. Solicitor's permit - to offer for sale or to solicit orders for the sale of any cannabis products, medical cannabis and/or hemp cannabis, as a representative of a registered organization or licensee under this chapter. 4. Broker's permit - to act as a broker in the purchase and sale of cannabis products, medical cannabis and/or hemp cannabis for a fee or commission, for or on behalf of a person authorized to cultivate, proc- ess, distribute or dispense cannabis products, medical cannabis or hemp cannabis within the state. 5. Trucking permit - to allow for the trucking or transportation of cannabis products, medical cannabis or hemp cannabis by a person other than a registered organization or licensee under this chapter. 6. Warehouse permit - to allow for the storage of cannabis, cannabis products, medical cannabis or hemp cannabis at a location not otherwise registered or licensed by the office. 7. Delivery permit - to authorize licensed adult-use cannabis dispen- saries to deliver adult-use cannabis and cannabis products directly to cannabis consumers. S. 1509 154 A. 2009 8. Cannabinoid permit - to sell cannabinoid products derived from hemp cannabis for off-premises consumption. 9. Temporary retail cannabis permit - to authorize the retail sale of adult-use cannabis to cannabis consumers, for a limited purpose or dura- tion. 10. Caterer's permit - to authorize the service of cannabis products at a function, occasion or event in a hotel, restaurant, club, ballroom or other premises, which shall authorize within the hours fixed by the office, during which cannabis may lawfully be sold or served on the premises in which such function, occasion or event is held. 11. Packaging permit - to authorize a licensed cannabis distributor to sort, package, label and bundle cannabis products from one or more registered organizations or licensed processors, on the premises of the licensed cannabis distributor or at a warehouse for which a permit has been issued under this section. 12. Miscellaneous permits - to purchase, receive or sell cannabis, cannabis products or medical cannabis, or receipts, certificates, contracts or other documents pertaining to cannabis, cannabis products, or medical cannabis, in cases not expressly provided for by this chap- ter, when in the judgment of the office it would be appropriate and consistent with the policy and purpose of this chapter. § 131. Professional and medical record keeping. Any professional providing services in connection with a licensed or potentially licensed business under this chapter, or in connection with other conduct permit- ted under this chapter, and any medical professional providing medical care to a patient, other than a certified patient, may agree with their client or patient to maintain no record, or any reduced level of record keeping that professional and client or patient may agree. In case of such agreement, the professional's only obligation shall be to keep such records as agreed, and to keep a record of the agreement. Such reduced record keeping is conduct permitted under this chapter. § 132. County opt-out; municipal control and preemption. 1. The provisions of article four of this chapter, authorizing the cultivation, processing, distribution and sale of adult-use cannabis to cannabis consumers, shall not be applicable to a county, or city having a popu- lation of one-hundred thousand or more residents, which adopts a local law, ordinance or resolution by a majority vote of its governing body to completely prohibit the establishment or operation of one or more types of licenses contained in article four of this chapter, within the juris- diction of the county or city. 2. Except as provided for in subdivision one of this section, all county, town, city and village municipalities are hereby preempted from adopting any rule, ordinance, regulation or prohibition pertaining to the operation or licensure of registered organizations, adult-use canna- bis licenses or hemp licenses. However, municipalities may pass ordi- nances or regulations governing the time, place and manner of licensed adult-use cannabis retail dispensaries, provided such ordinance or regu- lation does not make the operation of such licensed retail dispensaries unreasonably impracticable as determined by the executive director in his or her sole discretion. § 133. Executive director to be necessary party to certain proceedings. The executive director shall be made a party to all actions and proceedings affecting in any manner the ability of a regis- tered organization or licensee to operate within a municipality, or the result of any vote thereupon; to all actions and proceedings relative to issuance or revocation of registrations, licenses or permits; to all S. 1509 155 A. 2009 injunction proceedings, and to all other civil actions or proceedings which in any manner affect the enjoyment of the privileges or the opera- tion of the restrictions provided for in this chapter. § 134. Penalties for violation of this chapter. 1. Any person who cultivates for sale or sells cannabis, cannabis products, medical canna- bis or hemp cannabis without having an appropriate registration, license or permit therefor, or whose registration, license, or permit has been revoked, surrendered or cancelled, shall be guilty of a misdemeanor, and upon first conviction thereof shall be punished by a fine not more than five thousand dollars per instance or by imprisonment in a county jail or penitentiary for a term of not less than thirty days nor more than one year or both and upon second conviction thereof shall be punished by a fine not less than ten thousand dollars or by imprisonment in a county jail or penitentiary for a term of not less than thirty days nor more than one year or both and upon all subsequent convictions thereof shall be punished by a fine not less twenty-five thousand dollars or peniten- tiary for a term of not less than thirty days nor more than one year or both provided, however, that in default of payment of any fine imposed, such person shall be imprisoned in a county jail or penitentiary for a term of not less than thirty days. 2. Any registered organization or licensee, whose registration or license has been suspended pursuant to the provisions of this chapter, who sells cannabis, cannabis products, medical cannabis or hemp cannabis during the suspension period, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not more than five thousand dollars per instance or by imprisonment in a county jail or penitentiary for a term of not more than six months, or by both such fine and imprisonment. 3. Any person who shall make any false statement in the application for a registration, license or a permit under this chapter shall be guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five thousand dollars, or by imprisonment in a county jail or penitentiary for a term of not more than six months or both. 4. Any violation by any person of any provision of this chapter for which no punishment or penalty is otherwise provided shall be a misde- meanor. § 135. Revocation of registrations, licenses and permits for cause; procedure for revocation or cancellation. 1. Any registration, license or permit issued pursuant to this chapter may be revoked, cancelled, suspended and/or subjected to the imposition of a civil penalty for cause, and must be revoked for the following causes: (a) conviction of the registered organization, licensee, permittee or his or her agent or employee for selling any illegal cannabis on the premises registered, licensed or permitted; or (b) for transferring, assigning or hypothecating a registration, license or permit without prior written approval of the office. 2. Notwithstanding the issuance of a registration, license or permit by way of renewal, the office may revoke, cancel or suspend such regis- tration, license or permit and/or may impose a civil penalty against any holder of such registration, license or permit, as prescribed by this section, for causes or violations occurring during the license period immediately preceding the issuance of such registration, license or permit. 3. (a) As used in this section, the term "for cause" shall also include the existence of a sustained and continuing pattern of miscon- S. 1509 156 A. 2009 duct, failure to adequately prevent diversion or disorder on or about the registered, licensed or permitted premises, or in the area in front of or adjacent to the registered or licensed premises, or in any parking lot provided by the registered organization or licensee for use by registered organization or licensee's patrons, which, in the judgment of the office, adversely affects or tends to affect the protection, health, welfare, safety, or repose of the inhabitants of the area in which the registered or licensed premises is located, or results in the licensed premises becoming a focal point for police attention, or is offensive to public decency. (b) (i) As used in this section, the term "for cause" shall also include deliberately misleading the authority: (A) as to the nature and character of the business to be operated by the registered organization, licensee or permittee; or (B) by substantially altering the nature or character of such business during the registration or licensing period without seeking appropriate approvals from the office. (ii) As used in this subdivision, the term "substantially altering the nature or character" of such business shall mean any significant alter- ation in the scope of business activities conducted by a registered organization, licensee or permittee that would require obtaining an alternate form of registration, license or permit. 4. As used in this chapter, the existence of a sustained and continu- ing pattern of misconduct, failure to adequately prevent diversion or disorder on or about the premises may be presumed upon the sixth inci- dent reported to the office by a law enforcement agency, or discovered by the office during the course of any investigation, of misconduct, diversion or disorder on or about the premises or related to the opera- tion of the premises, absent clear and convincing evidence of either fraudulent intent on the part of any complainant or a factual error with respect to the content of any report concerning such complaint relied upon by the office. 5. Notwithstanding any other provision of this chapter to the contra- ry, a suspension imposed under this section against the holder of a registration issued pursuant to article three of this chapter, shall only suspend the licensed activities related to the type of cannabis, medical cannabis or adult-use cannabis involved in the violation result- ing in the suspension. 6. Any registration, license or permit issued by the office pursuant to this chapter may be revoked, cancelled or suspended and/or be subjected to the imposition of a monetary penalty in the manner prescribed by this section and by the executive director in regulation. 7. The office may on its own initiative, or on complaint of any person, institute proceedings to revoke, cancel or suspend any adult-use cannabis retail dispensary license or adult-use cannabis on-site consumption license and may impose a civil penalty against the licensee after a hearing at which the licensee shall be given an opportunity to be heard. Such hearing shall be held in such manner and upon such notice as may be prescribed in regulation by the executive director. 8. All other registrations, licenses or permits issued under this chapter may be revoked, cancelled, suspended and/or made subject to the imposition of a civil penalty by the office after a hearing to be held in such manner and upon such notice as may be prescribed in regulation by the executive director. 9. Where a licensee or permittee is convicted of two or more qualify- ing offenses within a five-year period, the office, upon receipt of S. 1509 157 A. 2009 notification of such second or subsequent conviction, shall, in addition to any other sanction or civil or criminal penalty imposed pursuant to this chapter, impose on such licensee a civil penalty not to exceed ten thousand dollars. For purposes of this subdivision, a qualifying offense shall mean the unlawful sale of cannabis to a person under the age of twenty-one. For purposes of this subdivision, a conviction of a licensee or an employee or agent of such licensee shall constitute a conviction of such licensee. § 136. Lawful actions pursuant to this chapter. 1. Contracts related to the operation of registered organizations, licenses and permits under this chapter shall be lawful and shall not be deemed unenforceable on the basis that the actions permitted pursuant to the registration, license or permit are prohibited by federal law. 2. The following actions are not unlawful as provided under this chap- ter, shall not be an offense under any state or local law, and shall not result in any civil fine, seizure, or forfeiture of assets against any person acting in accordance with this chapter: (a) Actions of a registered organization, licensee, or permittee, or the employees or agents of such registered organization, licensee or permittee, as permitted by this chapter and consistent with rules and regulations of the office, pursuant to a valid registration, license or permit issued by the office. (b) Actions of those who allow property to be used by a registered organization, licensee, or permittee, or the employees or agents of such registered organization, licensee or permittee, as permitted by this chapter and consistent with rules and regulations of the office, pursu- ant to a valid registration, license or permit issued by the office. (c) Actions of any person or entity, their employees, or their agents providing a service to a registered organization, licensee, permittee or a potential registered organization, licensee, or permittee, as permit- ted by this chapter and consistent with rules and regulations of the office, relating to the formation of a business. (d) The purchase, possession, or consumption of cannabis, medical cannabis and hemp, as permitted by this chapter and consistent with rules and regulations of the office, obtained from a validly registered, licensed or permitted retailer. § 137. Review by courts. 1. The following actions by the office, and only the following actions by the office, shall be subject to review by the supreme court in the manner provided in article seventy-eight of the civil practice law and rules: (a) Refusal by the office to issue a registration, license, or a permit. (b) The revocation, cancellation or suspension of a registration, license, or permit by the office. (c) The failure or refusal by the office to render a decision upon any application or hearing submitted to or held by the office within sixty days after such submission or hearing. (d) The transfer by the office of a registration, license, or permit to any other entity or premises, or the failure or refusal by the office to approve such a transfer. (e) Refusal to approve alteration of premises. (f) Refusal to approve a corporate change in stockholders, stockhold- ings, officers or directors. 2. No stay shall be granted pending the determination of such matter except on notice to the office and only for a period of less than thirty days. In no instance shall a stay be granted where the office has issued S. 1509 158 A. 2009 a summary suspension of a registration, license, or permit for the protection of the public health, safety, and welfare. § 138. Illicit cannabis. 1. "Illicit cannabis" means and includes any cannabis product, medical cannabis or hemp cannabis owned, cultivated, distributed, bought, sold, packaged, rectified, blended, treated, forti- fied, mixed, processed, warehoused, possessed or transported, or on which any tax required to have been paid under any applicable state law has not been paid. 2. Any person who shall knowingly possess or have under his or her control any illicit cannabis is guilty of a misdemeanor. 3. Any person who shall knowingly barter or exchange with, or sell, give or offer to sell or to give another any illicit cannabis is guilty of a misdemeanor. 4. Any person who shall possess or have under his or her control or transport any illicit cannabis with intent to barter or exchange with, or to sell or give to another the same or any part thereof is guilty of a misdemeanor. Such intent is presumptively established by proof that the person knowingly possessed or had under his or her control one or more ounces of illicit cannabis. This presumption may be rebutted. 5. Any person who, being the owner, lessee, or occupant of any room, shed, tenement, booth or building, float or vessel, or part thereof, knowingly permits the same to be used for the cultivation, processing, distribution, purchase, sale, warehousing, transportation, or storage of any illicit cannabis, is guilty of a misdemeanor. § 139. Injunction for unlawful manufacturing, sale or consumption of cannabis. 1. If any person shall engage or participate or be about to engage or participate in the cultivation, production, distribution, traffic, or sale of cannabis products, medical cannabis or hemp cannabis in this state without obtaining the appropriate registration, license, or permit therefor, or shall traffic in cannabis products, medical cannabis or hemp cannabis contrary to any provision of this chapter, or otherwise unlawfully, or shall traffic in illegal cannabis products, medical cannabis or hemp cannabis, or, operating a place for profit or pecuniary gain, with a capacity for the assemblage of twenty or more persons, shall permit a person or persons to come to such place of assembly for the purpose of consuming cannabis products without having the appropriate license or permit therefor, the office may present a verified petition or complaint to a justice of the supreme court at a special term of the supreme court of the judicial district in which such city, village or town is situated, for an order enjoining such person engaging or participating in such activity or from carrying on such business. Such petition or complaint shall state the facts upon which such application is based. Upon the presentation of the petition or complaint, the justice or court may grant an order temporarily restrain- ing any person from continuing to engage in conduct as specified in the petition or complaint, and shall grant an order requiring such person to appear before such justice or court at or before a special term of the supreme court in such judicial district on the day specified therein, not more than ten days after the granting thereof, to show cause why such person should not be permanently enjoined from engaging or partic- ipating in such activity or from carrying on such business, or why such person should not be enjoined from carrying on such business contrary to the provisions of this chapter. A copy of such petition or complaint and order shall be served upon the person, in the manner directed by such order, not less than three days before the return day thereof. On the day specified in such order, the justice or court before whom the same S. 1509 159 A. 2009 is returnable shall hear the proofs of the parties and may, if deemed necessary or proper, take testimony in relation to the allegations of the petition or complaint. If the justice or court is satisfied that such person is about to engage or participate in the unlawful traffic in cannabis, medical cannabis or hemp cannabis or has unlawfully culti- vated, processed, or sold cannabis products, medical cannabis or hemp cannabis without having obtained a registration or license or contrary to the provisions of this chapter, or has trafficked in illegal canna- bis, or, is operating or is about to operate such place for profit or pecuniary gain, with such capacity, and has permitted or is about to permit a person or persons to come to such place of assembly for the purpose of consuming cannabis products without having such appropriate license, an order shall be granted enjoining such person from thereafter engaging or participating in or carrying on such activity or business. If, after the entry of such an order in the county clerk's office of the county in which the principal place of business of the corporation or partnership is located, or in which the individual so enjoined resides or conducts such business, and the service of a copy thereof upon such person, or such substituted service as the court may direct, such person, partnership or corporation shall, in violation of such order, cultivate, process, distribute or sell cannabis products, medical canna- bis or hemp cannabis, or illegal cannabis products, medical cannabis or hemp cannabis, or permit a person or persons to come to such place of assembly for the purpose of consuming cannabis products, such activity shall be deemed a contempt of court and be punishable in the manner provided by the judiciary law, and, in addition to any such punishment, the justice or court before whom or which the petition or complaint is heard, may, in his or its discretion, order the seizure and forfeiture of any cannabis products and any fixtures, equipment and supplies used in the operation or promotion of such illegal activity and such property shall be subject to forfeiture pursuant to law. Costs upon the applica- tion for such injunction may be awarded in favor of and against the parties thereto in such sums as in the discretion of the justice or court before whom or which the petition or complaint is heard may seem proper. 2. The owner, lessor and lessee of a building, erection or place where cannabis products, medical cannabis or hemp cannabis is unlawfully cultivated, processed, distributed, sold, consumed or permitted to be unlawfully cultivated, processed, distributed, sold or consumed may be made a respondent or defendant in the proceeding or action. § 140. Persons forbidden to traffic cannabis; certain officials not to be interested in manufacture or sale of cannabis products. 1. The following are forbidden to traffic in cannabis: (a) Except as provided in subdivision one-a of this section, a person who has been convicted of a felony, unless subsequent to such conviction such person shall have received an executive pardon therefor removing this disability, a certificate of good conduct granted by the department of corrections and community supervision, or a certificate of relief from disabilities granted by the department of corrections and community supervision or a court of this state pursuant to the provisions of arti- cle twenty-three of the correction law to remove the disability under this section because of such conviction; (b) A person under the age of twenty-one years; (c) A person who is not a citizen of the United States or an alien lawfully admitted for permanent residence in the United States; S. 1509 160 A. 2009 (d) A partnership or a corporation, unless each member of the partner- ship, or each of the principal officers and directors of the corpo- ration, is a citizen of the United States or an alien lawfully admitted for permanent residence in the United States, not less than twenty-one years of age, and has not been convicted of any felony, or if so convicted has received, subsequent to such conviction, an executive pardon therefor removing this disability a certificate of good conduct granted by the department of corrections and community supervision, or a certificate of relief from disabilities granted by the department of corrections and community supervision or a court of this state pursuant to the provisions of article twenty-three of the correction law to remove the disability under this section because of such conviction; provided however that a corporation which otherwise conforms to the requirements of this section and chapter may be licensed if each of its principal officers and more than one-half of its directors are citizens of the United States or aliens lawfully admitted for permanent residence in the United States; and provided further that a corporation organized under the not-for-profit corporation law or the education law which otherwise conforms to the requirements of this section and chapter may be licensed if each of its principal officers and more than one-half of its directors are not less than twenty-one years of age and none of its directors are less than eighteen years of age; and provided further that a corporation organized under the not-for-profit corporation law or the education law and located on the premises of a college as defined by section two of the education law which otherwise conforms to the requirements of this section and chapter may be licensed if each of its principal officers and each of its directors are not less than eighteen years of age; (e) A person who shall have had any registration or license issued under this chapter revoked for cause, until the expiration of two years from the date of such revocation; (f) A person not registered or licensed under the provisions of this chapter, who has been convicted of a violation of this chapter, until the expiration of two years from the date of such conviction; or (g) A corporation or partnership, if any officer and director or any partner, while not licensed under the provisions of this chapter, has been convicted of a violation of this chapter, or has had a registration or license issued under this chapter revoked for cause, until the expi- ration of two years from the date of such conviction or revocation. 1-a. Notwithstanding the provision of subdivision one of this section, a corporation holding a registration or license to traffic cannabis products or medical cannabis shall not, upon conviction of a felony be automatically forbidden to traffic in cannabis products or medical cannabis, but the application for a registered organization or license by such a corporation shall be subject to denial, and the registration or license of such a corporation shall be subject to revocation or suspension by the office pursuant, consistent with the provisions of article twenty-three-A of the correction law. For any felony conviction by a court other than a court of this state, the office may request the department of corrections and community supervision to investigate and review the facts and circumstances concerning such a conviction, and such department shall, if so requested, submit its findings to the office as to whether the corporation has conducted itself in a manner such that discretionary review by the office would not be inconsistent with the public interest. The department of corrections and community supervision may charge the registered organization, licensee or appli- S. 1509 161 A. 2009 cant a fee equivalent to the expenses of an appropriate investigation under this subdivision. For any conviction rendered by a court of this state, the office may request the corporation, if the corporation is eligible for a certificate of relief from disabilities, to seek such a certificate from the court which rendered the conviction and to submit such a certificate as part of the office's discretionary review process. 2. Except as may otherwise be provided for in regulation, it shall be unlawful for any police commissioner, police inspector, captain, sergeant, roundsman, patrolman or other police official or subordinate of any police department in the state, to be either directly or indi- rectly interested in the cultivation, processing, distribution, or sale of cannabis products or to offer for sale, or recommend to any regis- tered organization or licensee any cannabis products. A person may not be denied any registration or license granted under the provisions of this chapter solely on the grounds of being the spouse of a public serv- ant described in this section. The solicitation or recommendation made to any registered organization or licensee, to purchase any cannabis products by any police official or subordinate as hereinabove described, shall be presumptive evidence of the interest of such official or subor- dinate in the cultivation, processing, distribution, or sale of cannabis products. 3. No elective village officer shall be subject to the limitations set forth in subdivision two of this section unless such elective village officer shall be assigned duties directly relating to the operation or management of the police department. § 141. Access to criminal history information through the division of criminal justice services. In connection with the administration of this chapter, the executive director is authorized to request, receive and review criminal history information through the division of criminal justice services with respect to any person seeking a registration, license, permit or authorization to cultivate, process, distribute or sell medical cannabis, adult use cannabis or hemp cannabis. At the exec- utive director's request, each person, member, principal and/or officer of the applicant shall submit to the office his or her fingerprints in such form and in such manner as specified by the division, for the purpose of conducting a criminal history search and returning a report thereon in accordance with the procedures and requirements established by the division pursuant to the provisions of article thirty-five of the executive law, which shall include the payment of the prescribed proc- essing fees for the cost of the division's full search and retain proce- dures and a national criminal history record check. The executive direc- tor, or his or her designee, shall submit such fingerprints and the processing fee to the division. The division shall forward to the execu- tive director a report with respect to the applicant's previous criminal history, if any, or a statement that the applicant has no previous crim- inal history according to its files. Fingerprints submitted to the divi- sion pursuant to this subdivision may also be submitted to the federal bureau of investigation for a national criminal history record check. If additional copies of fingerprints are required, the applicant shall furnish them upon request. § 3. Intentionally omitted. § 4. Section 3302 of the public health law, as added by chapter 878 of the laws of 1972, subdivisions 1, 14, 16, 17 and 27 as amended and subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24, 25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998, subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39 S. 1509 162 A. 2009 and 40 as added by chapter 178 of the laws of 2010, paragraph (a) of subdivision 20, the opening paragraph of subdivision 22 and subdivision 29 as amended by chapter 163 of the laws of 1973, subdivision 31 as amended by section 4 of part A of chapter 58 of the laws of 2004, subdi- vision 41 as added by section 6 of part A of chapter 447 of the laws of 2012, and subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of the laws of 2014, is amended to read as follows: § 3302. Definitions of terms of general use in this article. Except where different meanings are expressly specified in subsequent provisions of this article, the following terms have the following mean- ings: 1. "Addict" means a person who habitually uses a controlled substance for a non-legitimate or unlawful use, and who by reason of such use is dependent thereon. 2. "Administer" means the direct application of a controlled substance, whether by injection, inhalation, ingestion, or any other means, to the body of a patient or research subject. 3. "Agent" means an authorized person who acts on behalf of or at the direction of a manufacturer, distributor, or dispenser. No person may be authorized to so act if under title VIII of the education law such person would not be permitted to engage in such conduct. It does not include a common or contract carrier, public warehouseman, or employee of the carrier or warehouseman when acting in the usual and lawful course of the carrier's or warehouseman's business. 4. ["Concentrated Cannabis" means (a) the separated resin, whether crude or purified, obtained from a plant of the genus Cannabis; or (b) a material, preparation, mixture, compound or other substance which contains more than two and one-half percent by weight of delta-9 tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono- terpene numbering system. 5.] "Controlled substance" means a substance or substances listed in section thirty-three hundred six of this [chapter] TITLE. [6.] 5. "Commissioner" means commissioner of health of the state of New York. [7.] 6. "Deliver" or "delivery" means the actual, constructive or attempted transfer from one person to another of a controlled substance, whether or not there is an agency relationship. [8.] 7. "Department" means the department of health of the state of New York. [9.] 8. "Dispense" means to deliver a controlled substance to an ulti- mate user or research subject by lawful means, including by means of the internet, and includes the packaging, labeling, or compounding necessary to prepare the substance for such delivery. [10.] 9. "Distribute" means to deliver a controlled substance, includ- ing by means of the internet, other than by administering or dispensing. [11.] 10. "Distributor" means a person who distributes a controlled substance. [12.] 11. "Diversion" means manufacture, possession, delivery or use of a controlled substance by a person or in a manner not specifically authorized by law. [13.] 12. "Drug" means (a) substances recognized as drugs in the official United States Phar- macopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement to any of them; S. 1509 163 A. 2009 (b) substances intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or animals; and (c) substances (other than food) intended to affect the structure or a function of the body of man or animal. It does not include devices or their components, parts, or accessories. [14.] 13. "Federal agency" means the Drug Enforcement Administration, United States Department of Justice, or its successor agency. [15.] 14. "Federal controlled substances act" means the Comprehensive Drug Abuse Prevention and Control Act of 1970, Public Law 91-513, and any act or acts amendatory or supplemental thereto or regulations promulgated thereunder. [16.] 15. "Federal registration number" means such number assigned by the Federal agency to any person authorized to manufacture, distribute, sell, dispense or administer controlled substances. [17.] 16. "Habitual user" means any person who is, or by reason of repeated use of any controlled substance for non-legitimate or unlawful use is in danger of becoming, dependent upon such substance. [18.] 17. "Institutional dispenser" means a hospital, veterinary hospital, clinic, dispensary, maternity home, nursing home, mental hospital or similar facility approved and certified by the department as authorized to obtain controlled substances by distribution and to dispense and administer such substances pursuant to the order of a prac- titioner. [19.] 18. "License" means a written authorization issued by the department or the New York state department of education permitting persons to engage in a specified activity with respect to controlled substances. [20.] 19. "Manufacture" means the production, preparation, propa- gation, compounding, cultivation, conversion or processing of a controlled substance, either directly or indirectly or by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container, except that this term does not include the preparation, compounding, packaging or labeling of a controlled substance: (a) by a practitioner as an incident to his administering or dispens- ing of a controlled substance in the course of his professional prac- tice; or (b) by a practitioner, or by his authorized agent under his super- vision, for the purpose of, or as an incident to, research, teaching, or chemical analysis and not for sale; or (c) by a pharmacist as an incident to his dispensing of a controlled substance in the course of his professional practice. [21. "Marihuana" means all parts of the plant of the genus Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manu- facture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. 22.] 20. "Narcotic drug" means any of the following, whether produced directly or indirectly by extraction from substances of vegetable S. 1509 164 A. 2009 origin, or independently by means of chemical synthesis, or by a combi- nation of extraction and chemical synthesis: (a) opium and opiate, and any salt, compound, derivative, or prepara- tion of opium or opiate; (b) any salt, compound, isomer, derivative, or preparation thereof which is chemically equivalent or identical with any of the substances referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but not including the isoquinoline alkaloids of opium; (c) opium poppy and poppy straw. [23.] 21. "Opiate" means any substance having an addiction-forming or addiction-sustaining liability similar to morphine or being capable of conversion into a drug having addiction-forming or addiction-sustaining liability. It does not include, unless specifically designated as controlled under section [3306] THIRTY-THREE HUNDRED SIX of this [arti- cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and its salts (dextromethorphan). It does include its racemic and levorota- tory forms. [24.] 22. "Opium poppy" means the plant of the species Papaver somniferum L., except its seeds. [25.] 23. "Person" means individual, institution, corporation, govern- ment or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. [26.] 24. "Pharmacist" means any person licensed by the state depart- ment of education to practice pharmacy. [27.] 25. "Pharmacy" means any place registered as such by the New York state board of pharmacy and registered with the Federal agency pursuant to the federal controlled substances act. [28.] 26. "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing. [29.] 27. "Practitioner" means: A physician, dentist, podiatrist, veterinarian, scientific investi- gator, or other person licensed, or otherwise permitted to dispense, administer or conduct research with respect to a controlled substance in the course of a licensed professional practice or research licensed pursuant to this article. Such person shall be deemed a "practitioner" only as to such substances, or conduct relating to such substances, as is permitted by his license, permit or otherwise permitted by law. [30.] 28. "Prescribe" means a direction or authorization, by prescription, permitting an ultimate user lawfully to obtain controlled substances from any person authorized by law to dispense such substances. [31.] 29. "Prescription" shall mean an official New York state prescription, an electronic prescription, an oral prescription[,] OR an out-of-state prescription[, or any one]. [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth- er, or offer or agree to do the same. [33.] 31. "Ultimate user" means a person who lawfully obtains and possesses a controlled substance for his own use or the use by a member of his household or for an animal owned by him or in his custody. It shall also mean and include a person designated, by a practitioner on a prescription, to obtain such substance on behalf of the patient for whom such substance is intended. [34.] 32. "Internet" means collectively computer and telecommuni- cations facilities which comprise the worldwide network of networks that employ a set of industry standards and protocols, or any predecessor or successor protocol to such protocol, to exchange information of all S. 1509 165 A. 2009 kinds. "Internet," as used in this article, also includes other networks, whether private or public, used to transmit information by electronic means. [35.] 33. "By means of the internet" means any sale, delivery, distribution, or dispensing of a controlled substance that uses the internet, is initiated by use of the internet or causes the internet to be used. [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person in the United States that sells, delivers or dispenses, or offers to sell, deliver, or dispense, a controlled substance by means of the internet. [37.] 35. "Electronic prescription" means a prescription issued with an electronic signature and transmitted by electronic means in accord- ance with regulations of the commissioner and the commissioner of educa- tion and consistent with federal requirements. A prescription generated on an electronic system that is printed out or transmitted via facsimile is not considered an electronic prescription and must be manually signed. [38.] 36. "Electronic" means of or relating to technology having elec- trical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities. "Electronic" shall not include facsimile. [39.] 37. "Electronic record" means a paperless record that is created, generated, transmitted, communicated, received or stored by means of electronic equipment and includes the preservation, retrieval, use and disposition in accordance with regulations of the commissioner and the commissioner of education and in compliance with federal law and regulations. [40.] 38. "Electronic signature" means an electronic sound, symbol, or process, attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the record, in accordance with regulations of the commissioner and the commissioner of education. [41.] 39. "Registry" or "prescription monitoring program registry" means the prescription monitoring program registry established pursuant to section thirty-three hundred forty-three-a of this article. [42.] 40. "Compounding" means the combining, admixing, mixing, dilut- ing, pooling, reconstituting, or otherwise altering of a drug or bulk drug substance to create a drug with respect to an outsourcing facility under section 503B of the federal Food, Drug and Cosmetic Act and further defined in this section. [43.] 41. "Outsourcing facility" means a facility that: (a) is engaged in the compounding of sterile drugs as defined in section sixty-eight hundred two of the education law; (b) is currently registered as an outsourcing facility pursuant to article one hundred thirty-seven of the education law; and (c) complies with all applicable requirements of federal and state law, including the Federal Food, Drug and Cosmetic Act. Notwithstanding any other provision of law to the contrary, when an outsourcing facility distributes or dispenses any drug to any person pursuant to a prescription, such outsourcing facility shall be deemed to be providing pharmacy services and shall be subject to all laws, rules and regulations governing pharmacies and pharmacy services. § 5. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31 and 32 of subdivision (d) of schedule I of section 3306 of the public health law, paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23 and 24 as added by chapter 664 of the laws of S. 1509 166 A. 2009 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by chapter 589 of the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the laws of 2006, are amended to read as follows: (13) [Marihuana. (14)] Mescaline. [(15)] (14) Parahexyl. Some trade or other names: 3-Hexyl-1-hydroxy- 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran. [(16)] (15) Peyote. Meaning all parts of the plant presently classi- fied botanically as Lophophora williamsii Lemaire, whether growing or not, the seeds thereof, any extract from any part of such plant, and every compound, manufacture, salts, derivative, mixture, or preparation of such plant, its seeds or extracts. [(17)] (16) N-ethyl-3-piperidyl benzilate. [(18)] (17) N-methyl-3-piperidyl benzilate. [(19)] (18) Psilocybin. [(20)] (19) Psilocyn. [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of the substances contained in the plant, or in the resinous extractives of cannabis, sp. and/or synthetic substances, derivatives, and their isomers with similar chemical structure and pharmacological activity such as the following: [/\] DELTA 1 cis or trans tetrahydrocannabinol, and their optical isomers [/\] DELTA 6 cis or trans tetrahydrocannabinol, and their optical isomers [/\] DELTA 3, 4 cis or trans tetrahydrocannabinol, and its optical isomers (since nomenclature of these substances is not internationally standardized, compounds of these structures, regardless of numerical designation of atomic positions covered). [(22)] (21) Ethylamine analog of phencyclidine. Some trade or other names: N-ethyl-1-phenylcyclohexylamine, (1-phenylcyclohexyl) ethyla- mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE. [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade or other names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP. [(24)] (23) Thiophene analog of phencyclidine. Some trade or other names: 1-{1-(2-thienyl)-cyclohexyl}-piperidine, 2-thienylanalog of phencyclidine, TPCP, TCP. [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA). [(26)] (25) 3,4-methylendioxy-N-ethylamphetamine (also known as N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine, N-ethyl MDA, MDE, MDEA. [(27)] (26) N-hydroxy-3,4-methylenedioxyamphetamine (also known as N-hydroxy-alpha-methyl-3,4 (methylenedioxy) phenethylamine, and N-hydroxy MDA. [(28)] (27) 1-{1- (2-thienyl) cyclohexyl} pyrrolidine. Some other names: TCPY. [(29)] (28) Alpha-ethyltryptamine. Some trade or other names: etryptamine; Monase; Alpha-ethyl-1H-indole-3-ethanamine; 3- (2-aminobutyl) indole; Alpha-ET or AET. [(30)] (29) 2,5-dimethoxy-4-ethylamphetamine. Some trade or other names: DOET. [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade or other names: 2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane; alpha-desmethyl DOB; 2C-B, Nexus. [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its optical isomers, salts and salts of isomers. S. 1509 167 A. 2009 § 6. Title 5-A of article 33 of the public health law is REPEALED. § 7. Section 3382 of the public health law, as added by chapter 878 of the laws of 1972, is amended to read as follows: § 3382. Growing of the plant known as Cannabis by unlicensed persons. A person who, without being licensed so to do under this article OR ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW, grows the plant of the genus Cannabis or knowingly allows it to grow on his land without destroying the same, shall be guilty of a class A misdemeanor. § 8. Subdivision 1 of section 3397-b of the public health law, as added by chapter 810 of the laws of 1980, is amended to read as follows: 1. ["Marijuana"] "CANNABIS" means [marijuana] CANNABIS as defined in [section thirty-three hundred two of this chapter] SUBDIVISION THREE OF SECTION THREE OF THE CANNABIS LAW and shall also include tetrahydrocan- nabinols or a chemical derivative of tetrahydrocannabinol. § 9. Subdivision 8 of section 1399-n of the public health law, as amended by chapter 13 of the laws of 2003, is amended to read as follows: 8. "Smoking" means the burning of a lighted cigar, cigarette, pipe or any other matter or substance which contains tobacco OR CANNABIS. § 10. Subdivisions 5, 6 and 9 of section 220.00 of the penal law, subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision 6 as amended by chapter 1051 of the laws of 1973 and subdivision 9 as amended by chapter 664 of the laws of 1985, are amended and a new subdi- vision 21 is added to read as follows: 5. "Controlled substance" means any substance listed in schedule I, II, III, IV or V of section thirty-three hundred six of the public health law other than [marihuana] CANNABIS AS DEFINED IN SUBDIVISION SIX OF THIS SECTION, but including concentrated cannabis as defined in [paragraph (a) of subdivision four of section thirty-three hundred two of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION. 6. ["Marihuana"] "CANNABIS" means ["marihuana" or "concentrated canna- bis" as those terms are defined in section thirty-three hundred two of the public health law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY PART OF THE PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS, OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU- FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE STALKS (EXCEPT THE RESIN EXTRACTED THEREFROM), FIBER, OIL, OR CAKE, OR THE STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA- BINOL (THC). 9. "Hallucinogen" means any controlled substance listed in schedule I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19), (20) AND (21). 21. "CONCENTRATED CANNABIS" MEANS: (A) THE SEPARATED RESIN, WHETHER CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A MATERIAL, PREPARATION, MIXTURE, COMPOUND OR OTHER SUBSTANCE WHICH CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI- NOL, OR ITS ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1 TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1 (6) MONOTERPENE NUMBERING SYSTEM. § 11. Subdivision 4 of section 220.06 of the penal law, as amended by chapter 537 of the laws of 1998, is amended to read as follows: S. 1509 168 A. 2009 4. one or more preparations, compounds, mixtures or substances containing concentrated cannabis as defined in [paragraph (a) of subdi- vision four of section thirty-three hundred two of the public health law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said preparations, compounds, mixtures or substances are of an aggregate weight of one-fourth ounce or more; or § 12. Subdivision 10 of section 220.09 of the penal law, as amended by chapter 537 of the laws of 1998, is amended to read as follows: 10. one or more preparations, compounds, mixtures or substances containing concentrated cannabis as defined in [paragraph (a) of subdi- vision four of section thirty-three hundred two of the public health law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said preparations, compounds, mixtures or substances are of an aggregate weight of one ounce or more; or § 13. Subdivision 3 of section 220.34 of the penal law, as amended by chapter 537 of the laws of 1998, is amended to read as follows: 3. concentrated cannabis as defined in [paragraph (a) of subdivision four of section thirty-three hundred two of the public health law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or § 14. Section 220.50 of the penal law, as amended by chapter 627 of the laws of 1990, is amended to read as follows: § 220.50 Criminally using drug paraphernalia in the second degree. A person is guilty of criminally using drug paraphernalia in the second degree when he knowingly possesses or sells: 1. Diluents, dilutants or adulterants, including but not limited to, any of the following: quinine hydrochloride, mannitol, mannite, lactose or dextrose, adapted for the dilution of narcotic drugs or stimulants under circumstances evincing an intent to use, or under circumstances evincing knowledge that some person intends to use, the same for purposes of unlawfully mixing, compounding, or otherwise preparing any narcotic drug or stimulant, OTHER THAN CANNABIS OR CONCENTRATED CANNABIS; or 2. Gelatine capsules, glassine envelopes, vials, capsules or any other material suitable for the packaging of individual quantities of narcotic drugs or stimulants under circumstances evincing an intent to use, or under circumstances evincing knowledge that some person intends to use, the same for the purpose of unlawfully manufacturing, packaging or dispensing of any narcotic drug or stimulant, OTHER THAN CANNABIS OR CONCENTRATED CANNABIS; or 3. Scales and balances used or designed for the purpose of weighing or measuring controlled substances, under circumstances evincing an intent to use, or under circumstances evincing knowledge that some person intends to use, the same for purpose of unlawfully manufacturing, pack- aging or dispensing of any narcotic drug or stimulant, OTHER THAN CANNA- BIS OR CONCENTRATED CANNABIS. Criminally using drug paraphernalia in the second degree is a class A misdemeanor. § 15. Section 221.00 of the penal law, as amended by chapter 90 of the laws of 2014, is amended to read as follows: § 221.00 [Marihuana] CANNABIS; definitions. Unless the context in which they are used clearly otherwise requires, the terms occurring in this article shall have the same meaning ascribed to them in article two hundred twenty of this chapter. Any act that is lawful under [title five-A of article thirty-three of the public health] ARTICLES THREE, FOUR OR FIVE, OF THE CANNABIS law is not a violation of this article. S. 1509 169 A. 2009 § 15-a. Section 221.00 of the penal law, as added by chapter 360 of the laws of 1977, is amended to read as follows: § 221.00 [Marihuana] CANNABIS; definitions. Unless the context in which they are used clearly otherwise requires, the terms occurring in this article shall have the same meaning ascribed to them in article two hundred twenty of this chapter. § 16. Section 221.05 of the penal law, as added by chapter 360 of the laws of 1977, is amended to read as follows: § 221.05 Unlawful possession of [marihuana] CANNABIS. A person is guilty of unlawful possession of [marihuana] CANNABIS when he OR SHE knowingly and unlawfully possesses [marihuana.]: 1. CANNABIS AND IS LESS THAN TWENTY-ONE YEARS OF AGE; OR 2. CANNABIS IN A PUBLIC PLACE, AS DEFINED IN SECTION 240.00 OF THIS PART, AND SUCH CANNABIS IS BURNING. Unlawful possession of [marihuana] CANNABIS is a violation punishable only by a fine of not more than one hundred FIFTY dollars[. However, where the defendant has previously been convicted of an offense defined in this article or article 220 of this chapter, committed within the three years immediately preceding such violation, it shall be punishable (a) only by a fine of not more than two hundred dollars, if the defend- ant was previously convicted of one such offense committed during such period, and (b) by a fine of not more than two hundred fifty dollars or a term of imprisonment not in excess of fifteen days or both, if the defendant was previously convicted of two such offenses committed during such period] WHEN SUCH POSSESSION IS BY A PERSON LESS THAN TWENTY-ONE YEARS OF AGE AND OF AN AGGREGATE WEIGHT OF LESS THAN ONE-HALF OF ONE OUNCE OR A FINE OF NOT MORE THAN ONE HUNDRED DOLLARS WHEN SUCH POSSESSION IS BY A PERSON LESS THAN TWENTY-ONE YEARS OF AGE AND OF AN AGGREGATE WEIGHT MORE THAN ONE-HALF OF ONE OUNCE BUT NOT MORE THAN ONE OUNCE. UNLAWFUL POSSESSION OF MARIJUANA IS PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS WHEN SUCH POSSESSION IS IN A PUBLIC PLACE AND SUCH CANNABIS IS BURNING. THE TERM BURNING IN THIS SECTION SHALL HAVE THE SAME MEANING AS THE TERM VAPING AS DEFINED IN SUBDIVISION EIGHT OF SECTION THIRTEEN HUNDRED NINETY-NINE-N OF THE PUBLIC HEALTH LAW. § 17. Section 221.15 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.15 Criminal possession of [marihuana] CANNABIS in the [fourth] THIRD degree. A person is guilty of criminal possession of [marihuana] CANNABIS in the [fourth] THIRD degree when he OR SHE knowingly and unlawfully possesses [one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of] an aggregate weight of more than [two ounces] ONE OUNCE OF CANNABIS OR MORE THAN FIVE GRAMS OF CONCENTRATED CANNABIS. Criminal possession of [marihuana] CANNABIS in the [fourth] THIRD degree is a [class A misdemeanor] VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO CERTIFIED PATIENTS OR DESIGNATED CAREGIVERS AS LAWFULLY REGISTERED UNDER ARTICLE THREE OF THE CANNABIS LAW. § 18. Section 221.20 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.20 Criminal possession of [marihuana] CANNABIS in the [third] SECOND degree. S. 1509 170 A. 2009 A person is guilty of criminal possession of [marihuana] CANNABIS in the [third] SECOND degree when he OR SHE knowingly and unlawfully possesses [one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of] an aggregate weight of more than [eight] TWO ounces OF CANNABIS OR MORE THAN TEN OUNCES OF CONCENTRATED CANNABIS. Criminal possession of [marihuana] CANNABIS in the [third] SECOND degree is a class [E felony] A MISDEMEANOR PUNISHABLE BY A FINE NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS PER OUNCE POSSESSED IN EXCESS OF TWO OUNCES. HOWEVER, WHERE THE DEFENDANT HAS PREVIOUSLY BEEN CONVICTED OF AN OFFENSE DEFINED IN THIS ARTICLE OR ARTICLE TWO HUNDRED TWENTY OF THIS TITLE, COMMITTED WITHIN THE THREE YEARS IMMEDIATELY PRECEDING SUCH VIOLATION, IT SHALL BE PUNISHABLE (A) ONLY BY A FINE OF NOT MORE THAN TWO HUNDRED DOLLARS PER OUNCE POSSESSED IN EXCESS OF TWO OUNCES, IF THE DEFENDANT WAS PREVIOUSLY CONVICTED OF ONE SUCH OFFENSE COMMITTED DURING SUCH PERIOD, AND (B) BY A FINE OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS PER OUNCE POSSESSED IN EXCESS OF TWO OUNCES OR A TERM OF IMPRI- SONMENT NOT IN EXCESS OF FIFTEEN DAYS OR BOTH, IF THE DEFENDANT WAS PREVIOUSLY CONVICTED OF TWO SUCH OFFENSES COMMITTED DURING SUCH PERIOD. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO CERTIFIED PATIENTS OR DESIGNATED CAREGIVERS AS LAWFULLY REGISTERED UNDER ARTICLE THREE OF THE CANNABIS LAW. § 19. Section 221.25 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.25 Criminal possession of [marihuana] CANNABIS in the [second] FIRST degree. A person is guilty of criminal possession of [marihuana] CANNABIS in the [second] FIRST degree when he OR SHE knowingly and unlawfully possesses [one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of] an aggregate weight of more than [sixteen] SIXTY-FOUR ounces OF CANNABIS OR MORE THAN EIGHTY GRAMS OF CONCENTRATED CANNABIS. Criminal possession of [marihuana] CANNABIS in the [second] FIRST degree is a class [D] E felony. § 20. Sections 221.10 and 221.30 of the penal law are REPEALED. § 21. Section 221.35 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.35 Criminal sale of [marihuana] CANNABIS in the fifth degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the fifth degree when he OR SHE knowingly and unlawfully sells, [without] FOR consideration[, one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are] CANNABIS OR CANNABIS CONCENTRATE of [an aggregate weight of two grams or less; or one cigarette containing mari- huana] ANY WEIGHT. Criminal sale of [marihuana] CANNABIS in the fifth degree is a [class B misdemeanor] VIOLATION PUNISHABLE BY A FINE NOT MORE THAN THE GREATER OF TWO-HUNDRED AND FIFTY DOLLARS OR TWO TIMES THE VALUE OF THE SALE. § 22. Section 221.40 of the penal law, as added by chapter 360 of the laws of 1977, is amended to read as follows: § 221.40 Criminal sale of [marihuana] CANNABIS in the fourth degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the fourth degree when he OR SHE knowingly and unlawfully sells [marihuana except as provided in section 221.35 of this article] CANNABIS OF AN S. 1509 171 A. 2009 AGGREGATE WEIGHT OF MORE THAN ONE OUNCE OR MORE THAN FIVE GRAMS OF CANNABIS CONCENTRATE. Criminal sale of [marihuana] CANNABIS in the fourth degree is a [class A] misdemeanor PUNISHABLE BY A FINE OF NOT MORE THAN THE GREATER OF FIVE HUNDRED DOLLARS OR TWO TIMES THE VALUE OF THE SALE OR A MAXIMUM OF THREE MONTHS IMPRISONMENT, OR BOTH. § 23. Section 221.45 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.45 Criminal sale of [marihuana] CANNABIS in the third degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the third degree when he OR SHE knowingly and unlawfully sells [one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of more than twenty-five grams] FOUR OUNCES OF CANNABIS OR MORE THAN TWENTY GRAMS OF CONCENTRATED CANNABIS. Criminal sale of [marihuana] CANNABIS in the third degree is a [class E felony] MISDEMEANOR PUNISHABLE BY A FINE OF NOT MORE THAN THE GREATER OF ONE THOUSAND DOLLARS OR TWO TIMES THE VALUE OF THE SALE OR A MAXIMUM OF ONE YEAR IMPRISONMENT OR BOTH. § 24. Section 221.50 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.50 Criminal sale of [marihuana] CANNABIS in the second degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the second degree when he knowingly and unlawfully sells [one or more prepa- rations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of] more than [four ounces, or knowingly and unlawfully sells one or more preparations, compounds, mixtures or substances containing mari- huana to a person less than eighteen years of age] SIXTEEN OUNCES OF CANNABIS OR MORE THAN EIGHTY GRAMS OF CONCENTRATED CANNABIS OR ANY AMOUNT OF CANNABIS OR CONCENTRATED CANNABIS TO ANY PERSON UNDER TWENTY- ONE YEARS OF AGE. Criminal sale of [marihuana] CANNABIS in the second degree is a class D felony. § 25. Section 221.55 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.55 Criminal sale of [marihuana] CANNABIS in the first degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the first degree when he knowingly and unlawfully sells [one or more prepa- rations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of] more than [sixteen] SIXTY-FOUR ounces OF CANNABIS OR THREE HUNDRED AND TWENTY GRAMS OF CANNABIS CONCENTRATE. Criminal sale of [marihuana] CANNABIS in the first degree is a class C felony. § 26. The penal law is amended by adding a new section 221.60 to read as follows: § 221.60 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION. THE PROVISIONS OF THIS ARTICLE AND OF ARTICLE TWO HUNDRED TWENTY OF THIS TITLE SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM CRIMINAL PENAL- TIES PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING, MANUFAC- TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING CANNABIS OR S. 1509 172 A. 2009 CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI- ANCE WITH ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW. § 27. Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50 of the criminal procedure law, paragraphs (i) and (j) as added by chap- ter 905 of the laws of 1977, paragraph (k) as added by chapter 835 of the laws of 1977 and as relettered by chapter 192 of the laws of 1980 and such subdivision as renumbered by chapter 142 of the laws of 1991, are amended to read as follows: (i) prior to the filing of an accusatory instrument in a local crimi- nal court against such person, the prosecutor elects not to prosecute such person. In such event, the prosecutor shall serve a certification of such disposition upon the division of criminal justice services and upon the appropriate police department or law enforcement agency which, upon receipt thereof, shall comply with the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of this section in the same manner as is required thereunder with respect to an order of a court entered pursuant to said subdivision one[.]; OR (j) following the arrest of such person, the arresting police agency, prior to the filing of an accusatory instrument in a local criminal court but subsequent to the forwarding of a copy of the fingerprints of such person to the division of criminal justice services, elects not to proceed further. In such event, the head of the arresting police agency shall serve a certification of such disposition upon the division of criminal justice services which, upon receipt thereof, shall comply with the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of this section in the same manner as is required thereunder with respect to an order of a court entered pursuant to said subdivision one[.]; OR (k) (i) The accusatory instrument alleged a violation of article two hundred twenty or section 240.36 of the penal law, prior to the taking effect of article two hundred twenty-one of the penal law, or a violation of article two hundred twenty-one of the penal law; (ii) the sole controlled substance involved is [marijuana] CANNABIS; AND (iii) the conviction was only for a violation or violations[; and (iv) at least three years have passed since the offense occurred]. § 28. Paragraph (f) of subdivision 2 of section 850 of the general business law is REPEALED. § 29. Paragraph (h) of subdivision 2 of section 850 of the general business law, as amended by chapter 812 of the laws of 1980, is amended to read as follows: (h) Objects, used or designed for the purpose of ingesting, inhaling, or otherwise introducing [marihuana,] cocaine, hashish, or hashish oil into the human body. § 30. Section 114-a of the vehicle and traffic law, as added by chap- ter 163 of the laws of 1973, is amended to read as follows: § 114-a. Drug. The term "drug" when used in this chapter, means and includes any substance listed in section thirty-three hundred six of the public health law AND CANNABIS AND CONCENTRATED CANNABIS AS DEFINED IN SECTION 220.00 OF THE PENAL LAW. § 31. The article heading of article 20-B of the tax law, as added by chapter 90 of the laws of 2014, is amended to read as follows: ARTICLE 20-B EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS § 32. The paragraph heading and subparagraph (i) of paragraph (b) of subdivision 1 of section 1193 of the vehicle and traffic law, as amended by chapter 169 of the laws of 2013, are amended to read as follows: S. 1509 173 A. 2009 Driving while intoxicated or while ability impaired by drugs or while ability impaired by the combined influence of drugs or of alcohol and any drug or drugs; aggravated driving while intoxicated; misdemeanor offenses. (i) A violation of subdivision two, three, OR four [or four-a] of section eleven hundred ninety-two of this article shall be a misde- meanor and shall be punishable by a fine of not less than five hundred dollars nor more than one thousand dollars, or by imprisonment in a penitentiary or county jail for not more than one year, or by both such fine and imprisonment. A violation of paragraph (a) of subdivision two-a of section eleven hundred ninety-two of this article shall be a misde- meanor and shall be punishable by a fine of not less than one thousand dollars nor more than two thousand five hundred dollars or by imprison- ment in a penitentiary or county jail for not more than one year, or by both such fine and imprisonment. § 33. The paragraph heading and subparagraph (i) of paragraph (c) of subdivision 1 of section 1193 of the vehicle and traffic law, as amended by chapter 169 of the laws of 2013, are amended to read as follows: Felony offenses. (i) A person who operates a vehicle (A) in violation of subdivision FOUR-A OF SECTION ELEVEN HUNDRED NINETY-TWO OF THIS ARTI- CLE OR IN VIOLATION OF SUBDIVISION two, two-a, three, OR four [or four-a] of section eleven hundred ninety-two of this article after having been convicted of a violation of subdivision two, two-a, three, four or four-a of such section or of vehicular assault in the second or first degree, as defined, respectively, in sections 120.03 and 120.04 and aggravated vehicular assault as defined in section 120.04-a of the penal law or of vehicular manslaughter in the second or first degree, as defined, respectively, in sections 125.12 and 125.13 and aggravated vehicular homicide as defined in section 125.14 of such law, within the preceding ten years, or (B) in violation of paragraph (b) of subdivision two-a of section eleven hundred ninety-two of this article shall be guilty of a class E felony, and shall be punished by a fine of not less than one thousand dollars nor more than five thousand dollars or by a period of imprisonment as provided in the penal law, or by both such fine and imprisonment. § 34. Subdivision 1 of section 171-a of the tax law, as amended by section 3 of part MM of chapter 59 of the laws of 2018, 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-C, 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 S. 1509 174 A. 2009 such depositories. Of the total revenue collected or received under such articles of this chapter, the comptroller shall retain in the comp- troller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such articles of this chapter out of which amount the comptroller shall pay any refunds or reimbursements to which taxpayers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursu- ant to subdivision five of section one hundred seventy-one-d and subdi- vision six of section one hundred seventy-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall cred- it to the special offset fiduciary account, pursuant to section ninety- one-c of the state finance law, any such amount creditable as a liabil- ity as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commissioner as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by article twenty-two of this chap- ter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- ty-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this S. 1509 175 A. 2009 chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corporation, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy- one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 35. Section 490 of the tax law, as added by chapter 90 of the laws of 2014, is amended to read as follows: § 490. [Definitions] EXCISE TAX ON MEDICAL CANNABIS. 1. (a) [All definitions of terms applicable to title five-A of article thirty-three of the public health law shall apply to this article.] FOR PURPOSES OF THIS ARTICLE, THE TERMS "MEDICAL CANNABIS," "REGISTERED ORGANIZATION," "CERTIFIED PATIENT," AND "DESIGNATED CAREGIVER" SHALL HAVE THE SAME DEFINITIONS AS IN SECTION THREE OF THE CANNABIS LAW. (b) As used in this section, where not otherwise specifically defined and unless a different meaning is clearly required "gross receipt" means the amount received in or by reason of any sale, conditional or other- wise, of medical [marihuana] CANNABIS or in or by reason of the furnish- ing of medical [marihuana] CANNABIS from the sale of medical [marihuana] CANNABIS provided by a registered organization to a certified patient or designated caregiver. Gross receipt is expressed in money, whether paid in cash, credit or property of any kind or nature, and shall be deter- mined without any deduction therefrom on account of the cost of the service sold or the cost of materials, labor or services used or other costs, interest or discount paid, or any other expenses whatsoever. "Amount received" for the purpose of the definition of gross receipt, as the term gross receipt is used throughout this article, means the amount charged for the provision of medical [marihuana] CANNABIS. 2. There is hereby imposed an excise tax on the gross receipts from the sale of medical [marihuana] CANNABIS by a registered organization to a certified patient or designated caregiver, to be paid by the regis- tered organization, at the rate of seven percent. The tax imposed by this article shall be charged against and be paid by the registered organization and shall not be added as a separate charge or line item on any sales slip, invoice, receipt or other statement or memorandum of the price given to the retail customer. 3. The commissioner may make, adopt and amend rules, regulations, procedures and forms necessary for the proper administration of this article. 4. Every registered organization that makes sales of medical [marihua- na] CANNABIS subject to the tax imposed by this article shall, on or before the twentieth date of each month, file with the commissioner a return on forms to be prescribed by the commissioner, showing its receipts from the retail sale of medical [marihuana] CANNABIS during the preceding calendar month and the amount of tax due thereon. Such returns shall contain such further information as the commissioner may require. Every registered organization required to file a return under this section shall, at the time of filing such return, pay to the commission- er the total amount of tax due on its retail sales of medical [marihua- na] CANNABIS for the period covered by such return. If a return is not S. 1509 176 A. 2009 filed when due, the tax shall be due on the day on which the return is required to be filed. 5. Whenever the commissioner shall determine that any moneys received under the provisions of this article were paid in error, he may cause the same to be refunded, with interest, in accordance with such rules and regulations as he may prescribe, 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 tax, 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 tax 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 which the commissioner shall deter- mine were paid in error, may be refunded out of funds in the custody of the comptroller to the credit of such taxes provided an application therefor is filed with the commissioner within two years from the time the erroneous payment was made. 6. The provisions of article twenty-seven of this chapter shall apply to the tax imposed by this article in the same manner and with the same force and effect as if the language of such article had been incorpo- rated in full into this section and had expressly referred to the tax 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. 7. All taxes, interest and penalties 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, provided that an amount equal to one hundred percent collected under this article less any amount determined by the commissioner to be reserved by the comptroller for refunds or reimbursements shall be paid by the comptroller to the credit of the medical [marihuana] CANNABIS trust fund established by section eighty-nine-h of the state finance law. 8. A registered organization that dispenses medical [marihuana] CANNA- BIS shall provide to the department information on where the medical [marihuana] CANNABIS was dispensed and where the medical [marihuana] CANNABIS was manufactured. A registered organization that obtains [mari- huana] CANNABIS from another registered organization shall obtain from such registered organization information on where the medical [marihua- na] CANNABIS was manufactured. § 36. Section 491 of the tax law, as added by chapter 90 of the laws of 2014, subdivision 1 as amended by section 1 of part II of chapter 60 of the laws of 2016, is amended to read as follows: § 491. 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 S. 1509 177 A. 2009 in any manner the contents or any other information relating to the business of a distributor, owner or other person 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] OFFICE OF CANNABIS MANAGEMENT, 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 proceed- ing 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 arti- cle, when the returns or the reports or the facts shown thereby are directly involved in such action or proceeding, or in an action or proceeding relating to the regulation or taxation of medical [marihuana] CANNABIS on behalf of officers to whom information shall have been supplied as provided in subdivision two of this section, 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 there- by 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 of any information contained in any such return or report by or to a duly authorized offi- cer or employee of the [state department of health] OFFICE OF CANNABIS MANAGEMENT; or by or to the attorney general or other legal represen- tatives 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; or 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 tax paid by a registered organization or other person under this article; nor to prohibit the delivery to a registered organization, or a duly authorized representative of such registered organization, a certified copy of any return or report filed by such registered organization 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. This section shall also not be construed to prohibit the disclosure, for tax administration purposes, to the division of the budget and the office of the state comptroller, of information aggre- gated from the returns filed by all the registered organizations making sales of, or manufacturing, medical [marihuana] CANNABIS in a specified county, whether the number of such registered organizations is one or more. Provided further that, notwithstanding the provisions of this subdivision, the commissioner may, in his or her discretion, permit the proper officer of any county entitled to receive an allocation, follow- ing appropriation by the legislature, pursuant to this article and section eighty-nine-h of the state finance law, or the authorized repre- sentative of such officer, to inspect any return filed under this arti- cle, or may furnish to such officer or the officer's authorized repre- sentative an abstract of any such return or supply such officer or such representative with information concerning an item contained in any such return, or disclosed by any investigation of tax liability under this article. S. 1509 178 A. 2009 2. The commissioner, in his or her discretion and pursuant to such rules and regulations as he or she may adopt, may permit [the commis- sioner of internal revenue of the United States, or] the appropriate officers of any other state which regulates or taxes medical [marihuana] CANNABIS, or the duly authorized representatives of such [commissioner or of any such] officers, to inspect returns or reports made pursuant to this article, or may furnish to such [commissioner or] other officers, or duly authorized representatives, a copy of any such return or report or an abstract of the information therein contained, or any portion thereof, or may supply [such commissioner or] any such officers or such representatives with information relating to the business of a regis- tered organization making returns or reports hereunder. The commissioner may refuse to supply information pursuant to this subdivision [to the commissioner of internal revenue of the United States or] to the offi- cers of any other state if the statutes [of the United States, or] of the state represented by such officers, do not grant substantially simi- lar privileges to the commissioner, but such refusal shall not be manda- tory. Information shall not be supplied to [the commissioner of internal revenue of the United States or] the appropriate officers of any other state which regulates or taxes medical [marihuana] CANNABIS, or the duly authorized representatives [of such commissioner or] of any of such officers, unless such [commissioner,] officer or other representatives shall agree not to divulge or make known in any manner the information so supplied, but such officers may transmit such information to their employees or legal representatives when necessary, who in turn shall be subject to the same restrictions as those hereby imposed upon such [commissioner,] officer or other representatives. 3. (a) Any officer or employee of the state who willfully violates the provisions of subdivision one or two 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) Cross-reference: For criminal penalties, see article thirty-seven of this chapter. § 37. The tax law is amended by adding a new article 20-C to read as follows: ARTICLE 20-C TAX ON ADULT-USE CANNABIS PRODUCTS SECTION 492. DEFINITIONS. 493. TAX ON CANNABIS. 494. REGISTRATION AND RENEWAL. 495. RETURNS AND PAYMENT OF TAX. 496. RETURNS TO BE KEPT SECRET. § 492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI- NITIONS SHALL APPLY: (A) "CANNABIS" MEANS ALL PARTS OF A PLANT OF THE GENUS CANNABIS, WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY PART OF THE PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN. FOR PURPOSES OF THIS ARTICLE, CANNABIS DOES NOT INCLUDE MEDICAL CANNABIS OR HEMP AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (B) "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA- BIS THAT HAS BEEN HARVESTED, DRIED, AND CURED, AND PRIOR TO ANY PROCESS- ING WHEREBY THE PLANT MATERIAL IS TRANSFORMED INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO, CONCENTRATED CANNABIS, OR AN EDIBLE OR S. 1509 179 A. 2009 TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS AND OTHER INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM. (C) "CANNABIS TRIM" MEANS ALL PARTS OF A PLANT OF THE GENUS CANNABIS OTHER THAN CANNABIS FLOWERS THAT HAVE BEEN HARVESTED, DRIED, AND CURED, AND PRIOR TO ANY PROCESSING WHEREBY THE PLANT MATERIAL IS TRANSFORMED INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO, CONCENTRATED CANNA- BIS, OR AN EDIBLE OR TOPICAL PRODUCT CONTAINING CANNABIS AND OTHER INGREDIENTS. (D) "ADULT-USE CANNABIS PRODUCT" MEANS A CANNABIS PRODUCT AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. FOR PURPOSES OF THIS ARTICLE, UNDER NO CIRCUMSTANCES SHALL ADULT-USE CANNABIS PRODUCT INCLUDE MEDICAL CANNABIS OR HEMP CANNABIS AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (E) "PERSON" MEANS EVERY INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE, RECEIVER, TRUSTEE, ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY A COURT OR OTHERWISE, AND ANY COMBINATION OF THE FOREGOING. (F) "WHOLESALER" MEANS ANY PERSON THAT SELLS OR TRANSFERS ADULT-USE CANNABIS PRODUCTS TO A RETAIL DISPENSARY LICENSED PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW. WHERE THE CULTIVATOR OR PROCESSOR IS ALSO THE RETAIL DISPENSARY, THE RETAIL DISPENSARY SHALL BE THE WHOLE- SALER FOR PURPOSES OF THIS ARTICLE. (G) "CULTIVATION" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO OF SECTION SIXTY-EIGHT OF THE CANNABIS LAW. (H) "RETAIL DISPENSARY" MEANS A DISPENSARY LICENSED TO SELL ADULT-USE CANNABIS PRODUCTS PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW. (I) "TRANSFER" MEANS TO GRANT, CONVEY, HAND OVER, ASSIGN, SELL, EXCHANGE OR BARTER, IN ANY MANNER OR BY ANY MEANS, WITH OR WITHOUT CONSIDERATION. (J) "SALE" MEANS ANY TRANSFER OF TITLE, POSSESSION OR BOTH, EXCHANGE OR BARTER, RENTAL, LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL OR OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A CONSIDERATION OR ANY AGREEMENT THEREFOR. (K) "PROCESSOR" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO OF SECTION SIXTY-NINE OF THE CANNABIS LAW. § 493. TAX ON CANNABIS. (A) THERE IS HEREBY IMPOSED AND SHALL BE PAID A TAX ON THE CULTIVATION OF CANNABIS FLOWER AND CANNABIS TRIM CANNABIS PURSUANT TO THE CANNABIS LAW AT THE RATE OF ONE DOLLAR PER DRY-WEIGHT GRAM OF CANNABIS FLOWER AND TWENTY-FIVE CENTS PER DRY-WEIGHT GRAM OF CANNABIS TRIM. WHERE THE WHOLESALER IS NOT THE CULTIVATOR, SUCH TAX SHALL BE COLLECTED FROM THE CULTIVATOR BY THE WHOLESALER AT THE TIME SUCH FLOWER OR TRIM IS TRANSFERRED TO THE WHOLESALER. WHERE THE WHOLE- SALER IS THE CULTIVATOR, SUCH TAX SHALL BE PAID BY THE WHOLESALER AND SHALL ACCRUE AT THE TIME OF SALE OR TRANSFER TO A RETAIL DISPENSARY. WHERE THE CULTIVATOR IS ALSO THE RETAIL DISPENSARY, SUCH TAX SHALL ACCRUE AT THE TIME OF THE SALE TO THE RETAIL CUSTOMER. (B) IN ADDITION TO THE TAX IMPOSED BY SUBDIVISION (A) OF THIS SECTION, THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A WHOLESALER TO A RETAIL DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, TO BE PAID BY SUCH WHOLESALER. WHERE THE WHOLESALER IS NOT THE RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE INVOICE PRICE CHARGED BY THE WHOLESALER TO A RETAIL DISPENSARY, AND SHALL ACCRUE AT THE TIME OF SUCH SALE. WHERE THE WHOLESALER IS THE RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE PRICE CHARGED TO THE RETAIL CUSTOMER AND SHALL ACCRUE AT THE TIME OF SUCH SALE. S. 1509 180 A. 2009 (C) IN ADDITION TO THE TAXES IMPOSED BY SUBDIVISIONS (A) AND (B) OF THIS SECTION, THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A WHOLESALER TO A RETAIL DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, IN TRUST FOR AND ON ACCOUNT OF THE COUNTY IN WHICH THE RETAIL DISPENSARY IS LOCATED. SUCH TAX SHALL BE PAID BY THE WHOLESALER AND SHALL ACCRUE AT THE TIME OF SUCH SALE. WHERE THE WHOLESALER IS NOT THE RETAIL DISPEN- SARY, SUCH TAX SHALL BE AT THE RATE OF TWO PERCENT OF THE INVOICE PRICE CHARGED BY THE WHOLESALER TO A RETAIL DISPENSARY. WHERE THE WHOLESALER IS THE RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF TWO PERCENT OF THE PRICE CHARGED TO THE RETAIL CUSTOMER. (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE TAXES IMPOSED BY ARTICLE TWENTY OF THIS CHAPTER SHALL NOT APPLY TO ANY PRODUCT SUBJECT TO TAX UNDER THIS ARTICLE. § 494. REGISTRATION AND RENEWAL. (A) EVERY WHOLESALER MUST FILE WITH THE COMMISSIONER A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION BEFORE ENGAGING IN BUSINESS. IN ORDER TO APPLY FOR SUCH CERTIFICATE OF REGISTRATION, SUCH PERSON MUST FIRST BE IN POSSESSION OF A VALID LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT. AN APPLICATION FOR A CERTIFICATE OF REGISTRATION MUST BE SUBMITTED ELECTRONICALLY, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND MUST BE ACCOMPANIED BY A NON- REFUNDABLE APPLICATION FEE OF SIX HUNDRED DOLLARS. A CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE AND SHALL BE DESTROYED IMMEDIATELY UPON SUCH PERSON CEASING TO DO BUSINESS AS SPECI- FIED IN SUCH CERTIFICATE, OR IN THE EVENT THAT SUCH BUSINESS NEVER COMMENCED. (B) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGISTRA- TION TO ANY APPLICANT AND SHALL REVOKE THE CERTIFICATE OF REGISTRATION OF ANY SUCH PERSON WHO DOES NOT POSSESS A VALID LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT. THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIF- ICATE OF REGISTRATION TO ANY APPLICANT WHERE SUCH APPLICANT: (1) HAS A PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVEN- TY-ONE-V OF THIS CHAPTER; (2) HAS HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE, A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT, OR ANY LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (3) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED OF THE CERTIFICATE'S ISSU- ANCE; (4) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTICLE; (5) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO BE GIVEN A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTI- CLE WHICH IS FALSE; OR (6) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE. (C) A CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE PERIOD SPECI- FIED THEREON, UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION OF THE TERM STATED ON A CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE SHALL BE NULL AND VOID. (D) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION MUST NOTIFY THE COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE CERTIF- ICATE, OR OF CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR THE CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS AND MUST BE MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER. (E) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE SHALL BE REQUIRED TO REAPPLY PRIOR TO SUCH CERTIFICATE'S EXPIRATION, DURING A REAPPLICATION PERIOD ESTABLISHED BY THE COMMISSIONER. SUCH REAPPLICATION PERIOD SHALL NOT OCCUR MORE FREQUENTLY THAN EVERY TWO S. 1509 181 A. 2009 YEARS. SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND CONDITIONS, INCLUDING GROUNDS FOR REFUSAL, AS AN INITIAL APPLICATION, INCLUDING THE PAYMENT OF THE APPLICATION FEE. (F) PENALTIES. A PERSON TO WHOM ADULT-USE CANNABIS PRODUCTS HAVE BEEN TRANSFERRED OR WHO SELLS ADULT-USE CANNABIS PRODUCTS WITHOUT A VALID CERTIFICATE OF REGISTRATION PURSUANT TO SUBDIVISION (A) OF THIS SECTION SHALL BE SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS FOR EACH MONTH OR PART THEREOF DURING WHICH SUCH PERSON CONTINUES TO POSSESS ADULT-USE CANNABIS PRODUCTS THAT HAVE BEEN TRANSFERRED TO SUCH PERSON OR WHO SELLS SUCH PRODUCTS AFTER THE EXPIRATION OF THE FIRST MONTH AFTER WHICH SUCH PERSON OPERATES WITHOUT A VALID CERTIFICATE OF REGISTRATION, NOT TO EXCEED TEN THOUSAND DOLLARS IN THE AGGREGATE. § 495. RETURNS AND PAYMENT OF TAX. (A) 1. EVERY WHOLESALER SHALL, ON OR BEFORE THE TWENTIETH DATE OF THE MONTH, FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE TOTAL WEIGHT OF CANNABIS FLOWER AND CANNABIS TRIM SUBJECT TO TAX PURSUANT TO SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE AND THE TOTAL AMOUNT OF TAX DUE THEREON IN THE PRECEDING CALENDAR MONTH, AND THE TOTAL AMOUNT OF TAX DUE UNDER SUBDIVISIONS (B) AND (C) OF SUCH SECTION ON ITS SALES TO A RETAIL DISPENSARY DURING THE PRECEDING CALEN- DAR MONTH, ALONG WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. EVERY PERSON REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF TAX DUE FOR THE PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED WHEN DUE, THE TAX SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED. 2. THE WHOLESALER SHALL MAINTAIN SUCH RECORDS IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE REGARDING SUCH ITEMS AS: WHERE THE WHOLESALER IS NOT THE CULTIVATOR, THE WEIGHT OF THE CANNABIS FLOWER AND CANNABIS TRIM TRANSFERRED TO IT BY A CULTIVATOR OR, WHERE THE WHOLESALER IS THE CULTIVATOR, THE WEIGHT OF SUCH FLOWER AND TRIM PRODUCED BY IT; THE GEOGRAPHIC LOCATION OF EVERY RETAIL DISPENSARY TO WHICH IT SOLD ADULT- USE CANNABIS PRODUCTS; AND ANY OTHER RECORD OR INFORMATION REQUIRED BY THE COMMISSIONER. THIS INFORMATION MUST BE KEPT BY SUCH PERSON FOR A PERIOD OF THREE YEARS AFTER THE RETURN WAS FILED. (B) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCORPO- RATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE TAX 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. (C) 1. ALL TAXES, INTEREST, AND PENALTIES 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, PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT COLLECTED UNDER THIS ARTICLE LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO BE RESERVED BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE PAID BY THE COMPTROLLER TO THE CREDIT OF THE CANNABIS REVENUE FUND ESTAB- LISHED BY SECTION NINETY-NINE-FF OF THE STATE FINANCE LAW. 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. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE REGISTRATION FEES UNDER SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY- FOUR OF THIS ARTICLE, BEFORE DEPOSIT INTO THE CANNABIS REVENUE FUND DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTU- S. 1509 182 A. 2009 ATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPART- MENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT, AND DISTRIBUTE THE TAXES IMPOSED BY THIS ARTICLE. 2. NOTWITHSTANDING THE FOREGOING, THE COMMISSIONER SHALL CERTIFY TO THE COMPTROLLER THE TOTAL AMOUNT OF TAX, PENALTY AND INTEREST RECEIVED BY HIM OR HER ON ACCOUNT OF THE TAX IMPOSED BY SUBDIVISION (C) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE IN TRUST FOR AND ON ACCOUNT OF EACH COUNTY IN WHICH A RETAIL DISPENSARY IS LOCATED. ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMPTROLLER, AFTER RESERVING SUCH REFUND FUND, SHALL PAY TO THE APPROPRIATE FISCAL OFFICER OF EACH SUCH COUNTY THE TAXES, PENALTIES AND INTEREST RECEIVED AND CERTIFIED BY THE COMMISSIONER FOR THE PRECEDING CALENDAR MONTH. § 496. RETURNS TO BE KEPT SECRET. (A) EXCEPT IN ACCORDANCE WITH PROPER JUDICIAL ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS PERMITTED 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 INFOR- MATION CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, 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 CONTENT OR ANY OTHER INFORMATION RELATED TO THE BUSINESS OF THE WHOLESALER 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 OFFICE OF CANNABIS MANAGEMENT, OR THE COMMISSIONER IN AN ACTION OR PROCEEDING INVOLVING THE COLLECTION OF 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 PROCEED- ING, OR IN AN ACTION OR PROCEEDING RELATED TO THE REGULATION OR TAXATION OF ADULT-USE CANNABIS PRODUCTS ON BEHALF OF OFFICERS TO WHOM INFORMATION SHALL HAVE BEEN SUPPLIED AS PROVIDED IN THIS SECTION, IN ANY OF WHICH EVENTS THE COURTS MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE- BY 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 OF ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT BY OR TO A DULY AUTHORIZED OFFI- CER OR EMPLOYEE OF THE OFFICE OF CANNABIS MANAGEMENT OR 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; OR 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 TAX PAID BY THE WHOLESALER UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO SUCH PERSON OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH PERSON, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH PERSON 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. THIS SECTION SHALL ALSO NOT BE CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX ADMINISTRATION PURPOSES, S. 1509 183 A. 2009 TO THE DIVISION OF THE BUDGET AND THE OFFICE OF THE STATE COMPTROLLER, OF INFORMATION AGGREGATED FROM THE RETURNS FILED BY ALL WHOLESALERS PURCHASING AND SELLING SUCH PRODUCTS IN THE STATE, WHETHER THE NUMBER OF SUCH PERSONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVISION, THE COMMISSIONER MAY IN HIS OR HER DISCRETION, PERMIT THE PROPER OFFICER OF ANY COUNTY ENTITLED TO RECEIVE ANY DISTRIBUTION OF THE MONIES RECEIVED ON ACCOUNT OF THE TAX IMPOSED BY SUBDIVISION (C) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE, OR THE AUTHORIZED REPRESENTATIVE OF SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR THE OFFI- CER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH OFFICER OR REPRESENTATIVE WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER THIS ARTICLE. (B) THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY PERMIT THE APPRO- PRIATE OFFICERS OF ANY OTHER STATE THAT REGULATES OR TAXES CANNABIS OR THE DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY SUCH OFFICERS, TO INSPECT RETURNS OR REPORTS MADE PURSUANT TO THIS ARTICLE, OR MAY FURNISH TO THE COMMISSIONER OR OTHER OFFICER, OR DULY AUTHORIZED REPRESENTATIVES, A COPY OF ANY SUCH RETURN OR REPORT OR AN ABSTRACT OF THE INFORMATION THEREIN CONTAINED, OR ANY PORTION THEREOF, OR MAY SUPPLY SUCH COMMISSIONER OR ANY SUCH OFFICERS OR SUCH REPRESENTATIVES WITH INFORMATION RELATING TO THE BUSINESS OF A WHOLESALER MAKING RETURNS OR REPORTS HEREUNDER SOLELY FOR PURPOSES OF TAX ADMINISTRATION. THE COMMIS- SIONER MAY REFUSE TO SUPPLY INFORMATION PURSUANT TO THIS SUBDIVISION TO THE OFFICERS OF ANY OTHER STATE IF THE STATUTES OF THE STATE REPRESENTED BY SUCH OFFICERS DO NOT GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE COMMISSIONER, BUT SUCH REFUSAL SHALL NOT BE MANDATORY. INFORMATION SHALL NOT BE SUPPLIED TO THE APPROPRIATE OFFICERS OF ANY STATE THAT REGULATES OR TAXES CANNABIS, OR THE DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY SUCH OFFICERS, UNLESS SUCH COMMISSIONER, OFFICER, OR OTHER REPRESENTATIVES SHALL AGREE NOT TO DIVULGE OR MAKE KNOWN IN ANY MANNER THE INFORMATION SO SUPPLIED, BUT SUCH OFFICERS MAY TRANSMIT SUCH INFORMATION TO THEIR EMPLOYEES OR LEGAL REPRESENTATIVES WHEN NECESSARY, WHO IN TURN SHALL BE SUBJECT TO THE SAME RESTRICTIONS AS THOSE HEREBY IMPOSED UPON SUCH COMMISSIONER, OFFICER OR OTHER REPRESENTATIVES. (C) 1. ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE PROVISIONS OF SUBDIVISION ONE OR TWO OF THIS SECTION SHALL BE DISMISSED FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THE STATE FOR A PERIOD OF FIVE YEARS THEREAFTER. 2. FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 38. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 3-b to read as follows: (3-B) ADULT-USE CANNABIS PRODUCTS AS DEFINED BY ARTICLE TWENTY-C OF THIS CHAPTER. § 39. Section 1825 of the tax law, as amended by section 3 of part NNN of chapter 59 of the laws of 2018, is amended to read as follows: § 1825. Violation of secrecy provisions of the tax law.--Any person who violates the SECRECY provisions of [subdivision (b) of section twen- ty-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-sev- en, subsection (a) of section nine hundred ninety-four, subdivision (a) of section eleven hundred forty-six, section twelve hundred eighty-sev- S. 1509 184 A. 2009 en, section twelve hundred ninety-six, section twelve hundred ninety- nine-F, subdivision (a) of section fourteen hundred eighteen, subdivi- sion (a) of section fifteen hundred eighteen, subdivision (a) of section fifteen hundred fifty-five of] this chapter, [and] OR subdivision (e) of section 11-1797 of the administrative code of the city of New York shall be guilty of a misdemeanor. § 40. Section 12 of chapter 90 of the laws of 2014 amending the public health law, the tax law, the state finance law, the general business law, the penal law and the criminal procedure law relating to medical use of marihuana, is amended to read as follows: § 12. This act shall take effect immediately [and]; PROVIDED, HOWEVER THAT SECTIONS ONE, THREE, FIVE, SIX, SEVEN-A, EIGHT, NINE, TEN AND ELEV- EN OF THIS ACT shall expire and be deemed repealed seven years after such date; provided that the amendments to section 171-a of the tax law made by section seven of this act shall take effect on the same date and in the same manner as section 54 of part A of chapter 59 of the laws of 2014 takes effect AND SHALL NOT EXPIRE AND BE DEEMED REPEALED; and provided, further, that the amendments to subdivision 5 of section 410.91 of the criminal procedure law made by section eleven of this act shall not affect the expiration and repeal of such section and shall expire and be deemed repealed therewith. § 41. The office of cannabis management, in consultation with the division of the budget, the department of taxation and finance, the department of health, office of alcoholism and substance abuse services, office of mental health, New York state police and the division of crim- inal justice services, shall conduct a study of the effectiveness of this act. Such study shall examine all aspects of this act, including economic and fiscal impacts, the impact on the public health and safety of New York residents and the progress made in achieving social justice goals and toward eliminating the illegal market for cannabis products in New York. The office shall make recommendations regarding the appropri- ate level of taxation of adult-use cannabis, as well as changes, if any, necessary to improve and protect the public health and safety of New Yorkers. Such study shall be conducted two years after the effective date of this act and shall be presented to the governor, the majority leader of the senate and the speaker of the assembly, no later than October 1, 2022. § 42. Section 102 of the alcoholic beverage control law is amended by adding a new subdivision 8 to read as follows: 8. NO ALCOHOLIC BEVERAGE RETAIL LICENSEE SHALL SELL CANNABIS, NOR HAVE OR POSSESS A LICENSE OR PERMIT TO SELL CANNABIS, ON THE SAME PREMISES WHERE ALCOHOLIC BEVERAGES ARE SOLD. § 43. Subdivisions 1, 4, 5, 6, 7 and 13 of section 12-102 of the general obligations law, as added by chapter 406 of the laws of 2000, are amended to read as follows: 1. "Illegal drug" means any controlled substance [or marijuana] the possession of which is an offense under the public health law or the penal law. 4. "Grade one violation" means possession of one-quarter ounce or more, but less than four ounces, or distribution of less than one ounce of an illegal drug [other than marijuana, or possession of one pound or twenty-five plants or more, but less than four pounds or fifty plants, or distribution of less than one pound of marijuana]. 5. "Grade two violation" means possession of four ounces or more, but less than eight ounces, or distribution of one ounce or more, but less than two ounces, of an illegal drug [other than marijuana, or possession S. 1509 185 A. 2009 of four pounds or more or fifty plants or distribution of more than one pound but less than ten pounds of marijuana]. 6. "Grade three violation" means possession of eight ounces or more, but less than sixteen ounces, or distribution of two ounces or more, but less than four ounces, of a specified illegal drug [or possession of eight pounds or more or seventy-five plants or more, but less than sixteen pounds or one hundred plants, or distribution of more than five pounds but less than ten pounds of marijuana]. 7. "Grade four violation" means possession of sixteen ounces or more or distribution of four ounces or more of a specified illegal drug [or possession of sixteen pounds or more or one hundred plants or more or distribution of ten pounds or more of marijuana]. 13. "Drug trafficker" means a person convicted of a class A or class B felony controlled substance [or marijuana offense] who, in connection with the criminal conduct for which he or she stands convicted, possessed, distributed, sold or conspired to sell a controlled substance [or marijuana] which, by virtue of its quantity, the person's prominent role in the enterprise responsible for the sale or distribution of such controlled substance and other circumstances related to such criminal conduct indicate that such person's criminal possession, sale or conspiracy to sell such substance was not an isolated occurrence and was part of an ongoing pattern of criminal activity from which such person derived substantial income or resources and in which such person played a leadership role. § 44. Paragraph (g) of subdivision 1 of section 488 of the social services law, as added by section 1 of part B of chapter 501 of the laws of 2012, is amended to read as follows: (g) "Unlawful use or administration of a controlled substance," which shall mean any administration by a custodian to a service recipient of: a controlled substance as defined by article thirty-three of the public health law, without a prescription; or other medication not approved for any use by the federal food and drug administration, EXCEPT FOR THE ADMINISTRATION OF MEDICAL CANNABIS WHEN SUCH ADMINISTRATION IS IN ACCORDANCE WITH ARTICLE THREE OF THE CANNABIS LAW AND ANY REGULATIONS PROMULGATED THEREUNDER AS WELL AS THE RULES, REGULATIONS, POLICIES, OR PROCEDURES OF THE STATE OVERSIGHT AGENCY OR AGENCIES GOVERNING SUCH CUSTODIANS. It also shall include a custodian unlawfully using or distributing a controlled substance as defined by article thirty-three of the public health law, at the workplace or while on duty. § 45. Paragraphs (e) and (f) of subdivision 1 of section 490 of the social services law, as added by section 1 of part B of chapter 501 of the laws of 2012, are amended and a new paragraph (g) is added to read as follows: (e) information regarding individual reportable incidents, incident patterns and trends, and patterns and trends in the reporting and response to reportable incidents is shared, consistent with applicable law, with the justice center, in the form and manner required by the justice center and, for facilities or provider agencies that are not state operated, with the applicable state oversight agency which shall provide such information to the justice center; [and] (f) incident review committees are established; provided, however, that the regulations may authorize an exemption from this requirement, when appropriate, based on the size of the facility or provider agency or other relevant factors. Such committees shall be composed of members of the governing body of the facility or provider agency and other persons identified by the director of the facility or provider agency, S. 1509 186 A. 2009 including some members of the following: direct support staff, licensed health care practitioners, service recipients and representatives of family, consumer and other advocacy organizations, but not the director of the facility or provider agency. Such committee shall meet regularly to: (i) review the timeliness, thoroughness and appropriateness of the facility or provider agency's responses to reportable incidents; (ii) recommend additional opportunities for improvement to the director of the facility or provider agency, if appropriate; (iii) review incident trends and patterns concerning reportable incidents; and (iv) make recommendations to the director of the facility or provider agency to assist in reducing reportable incidents. Members of the committee shall be trained in confidentiality laws and regulations, and shall comply with section seventy-four of the public officers law[.]; AND (G) SAFE STORAGE, ADMINISTRATION, AND DIVERSION PREVENTION POLICIES REGARDING CONTROLLED SUBSTANCES AND MEDICAL MARIHUANA. § 46. Subdivision 1 of section 505 of the agriculture and markets law, as added by chapter 524 of the laws of 2014, is amended to read as follows: 1. "Industrial hemp" means the plant Cannabis sativa L. and any part of such plant, INCLUDING THE SEEDS THEREOF AND ALL DERIVATIVES, EXTRACTS, CANNABINOIDS, ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS, whether growing or not, with a delta-9 tetrahydrocannabinol concen- tration of not more than 0.3 percent on a dry weight basis. § 47. Section 506 of the agriculture and markets law, as amended by section 1 of part OO of chapter 58 of the laws of 2017, is amended to read as follows: § 506. Growth, sale, distribution, transportation and processing of industrial hemp and products derived from such hemp permitted. [Notwith- standing any provision of law to the contrary, industrial] 1. INDUSTRIAL hemp and products derived from such hemp are agricultural products which may be grown, produced [and], possessed [in the state, and], sold, distributed, transported [or] AND/OR processed [either] in [or out of] state [as part of agricultural pilot programs pursuant to authorization under federal law and the provisions of this article] PURSUANT TO AUTHORIZATION UNDER FEDERAL LAW, THE PROVISIONS OF THIS ARTICLE AND/OR THE THE CANNABIS LAW. [Notwithstanding any provision of law to the contrary restricting the growing or cultivating, sale, distribution, transportation or processing of industrial hemp and products derived from such hemp, and subject to authorization under federal law, the] 2. THE commissioner may authorize the growing or cultivating of indus- trial hemp as part of agricultural pilot programs conducted by the department and/or an institution of higher education to study the growth and cultivation, sale, distribution, transportation and processing of such hemp and products derived from such hemp provided that the sites and programs used for growing or cultivating industrial hemp are certi- fied by, and registered with, the department. 3. IN ADDITION TO THE DEPARTMENT'S LICENSING AUTHORITY HEREINAFTER PROVIDED IN THIS ARTICLE, THE OFFICE OF CANNABIS MANAGEMENT SHALL LICENSE AND REGULATE THE GROWTH, EXTRACTION, PROCESSING AND/OR MANUFAC- TURING OF HEMP FOR DERIVATIVES, EXTRACTS, CANNABINOIDS, ISOMERS, ACIDS, SALTS AND SALTS OR ISOMERS AND/OR HEMP PRODUCTS FOR HUMAN OR ANIMAL CONSUMPTION OR USE (EXCEPT FOR THOSE FOOD AND/OR FOOD INGREDIENTS THAT ARE GENERALLY RECOGNIZED AS SAFE). 4. NOTHING IN THIS SECTION SHALL LIMIT THE JURISDICTION OF THE DEPART- MENT UNDER ANY OTHER ARTICLE OF THE AGRICULTURE AND MARKETS LAW. S. 1509 187 A. 2009 § 48. Section 507 of the agriculture and markets law is REPEALED and a new section 507 is added to read as follows: § 507. LICENSING; FEES. 1. NO PERSON SHALL: (A) GROW INDUSTRIAL HEMP IN THE STATE AND/OR SELL OR DISTRIBUTE INDUSTRIAL HEMP GROWN IN THE STATE UNLESS LICENSED BIENNIALLY BY THE COMMISSIONER OR (B) GROW, PROC- ESS AND/OR PRODUCE INDUSTRIAL HEMP AND PRODUCTS DERIVED FROM HEMP IN THE STATE OR SELL OR DISTRIBUTE UNLESS AUTHORIZED BY THE COMMISSIONER AS PART OF AN AGRICULTURAL RESEARCH PILOT PROGRAM ESTABLISHED UNDER THIS ARTICLE. 2. APPLICATION FOR A LICENSE TO GROW INDUSTRIAL HEMP SHALL BE MADE UPON A FORM PRESCRIBED BY THE COMMISSIONER, ACCOMPANIED BY A NON-REFUND- ABLE APPLICATION FEE OF FIVE HUNDRED DOLLARS. 3. THE APPLICANT SHALL FURNISH EVIDENCE OF HIS OR HER GOOD CHARACTER, EXPERIENCE AND COMPETENCY, THAT THE APPLICANT HAS ADEQUATE FACILITIES, EQUIPMENT, PROCESS CONTROLS, TESTING CAPABILITY AND SECURITY TO GROW HEMP. 4. GROWERS WHO INTEND TO CULTIVATE HEMP FOR CANNABINOIDS SHALL ALSO BE REQUIRED TO OBTAIN A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT. 5. A RENEWAL APPLICATION SHALL BE SUBMITTED TO THE COMMISSIONER AT LEAST THIRTY DAYS PRIOR TO THE COMMENCEMENT OF THE NEXT LICENSE PERIOD. § 49. Section 508 of the agriculture and markets law is REPEALED and a new section 508 is added to read as follows: § 508. COMPLIANCE ACTION PLAN. IF THE COMMISSIONER DETERMINES, AFTER NOTICE AND AN OPPORTUNITY FOR HEARING, THAT A LICENSEE HAS NEGLIGENTLY VIOLATED A PROVISION OF THIS ARTICLE, THAT LICENSEE SHALL BE REQUIRED TO COMPLY WITH A CORRECTIVE ACTION PLAN ESTABLISHED BY THE COMMISSIONER TO CORRECT THE VIOLATION BY A REASONABLE DATE AND TO PERIODICALLY REPORT TO THE COMMISSIONER WITH RESPECT TO THE LICENSEE'S COMPLIANCE WITH THIS ARTICLE FOR A PERIOD OF NO LESS THAN THE NEXT TWO CALENDAR YEARS FOLLOW- ING THE COMMENCEMENT DATE OF THE COMPLIANCE ACTION PLAN. THE PROVISIONS OF THIS SECTION SHALL NOT BE APPLICABLE TO RESEARCH PARTNERS CONDUCTING HEMP RESEARCH PURSUANT TO A RESEARCH PARTNER AGREEMENT, THE TERMS OF WHICH SHALL CONTROL. § 50. Section 509 of the agriculture and markets law is REPEALED and a new section 509 is added to read as follows: § 509. GRANTING, SUSPENDING OR REVOKING LICENSES. THE COMMISSIONER MAY DECLINE TO GRANT A NEW LICENSE, MAY DECLINE TO RENEW A LICENSE, MAY SUSPEND OR REVOKE A LICENSE ALREADY GRANTED AFTER DUE NOTICE AND OPPOR- TUNITY FOR HEARING WHENEVER HE OR SHE FINDS THAT: (1) ANY STATEMENT CONTAINED IN AN APPLICATION FOR AN APPLICANT OR LICENSEE IS OR WAS FALSE OR MISLEADING; (2) THE APPLICANT OR LICENSEE DOES NOT HAVE GOOD CHARACTER, THE REQUIRED EXPERIENCE AND/OR COMPETENCY, ADEQUATE FACILITIES, EQUIPMENT, PROCESS CONTROLS, TESTING CAPABILITY AND/OR SECURITY TO PRODUCE HEMP OR PRODUCTS DERIVED FROM HEMP; (3) THE APPLICANT OR LICENSEE HAS FAILED OR REFUSED TO PRODUCE ANY RECORDS OR PROVIDE ANY INFORMATION DEMANDED BY THE COMMISSIONER REASON- ABLY RELATED TO THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE; OR (4) THE APPLICANT OR LICENSEE, OR ANY OFFICER, DIRECTOR, PARTNER, HOLDER OF TEN PERCENT OF THE VOTING STOCK, OR ANY OTHER PERSON EXERCIS- ING ANY POSITION OF MANAGEMENT OR CONTROL HAS FAILED TO COMPLY WITH ANY OF THE PROVISIONS OF THIS ARTICLE OR RULES AND REGULATIONS PROMULGATED PURSUANT THERETO. § 51. Section 510 of the agriculture and markets law is REPEALED and a new section 510 is added to read as follows: S. 1509 188 A. 2009 § 510. REGULATIONS. THE COMMISSIONER MAY DEVELOP REGULATIONS CONSIST- ENT WITH THE PROVISIONS OF THIS ARTICLE FOR THE GROWING AND CULTIVATION, SALE, DISTRIBUTION, AND TRANSPORTATION OF INDUSTRIAL HEMP GROWN IN THE STATE, INCLUDING: (A) THE AUTHORIZATION OR LICENSING OF ANY PERSON WHO MAY: ACQUIRE OR POSSESS HEMP PLANTS OR SEEDS; GROW OR CULTIVATE HEMP PLANTS; AND/OR SELL, PURCHASE, DISTRIBUTE, OR TRANSPORT SUCH PLANTS, PLANT PARTS, OR SEEDS; (B) MAINTAINING RELEVANT INFORMATION REGARDING LAND ON WHICH INDUS- TRIAL HEMP IS PRODUCED WITHIN THE STATE, INCLUDING THE LEGAL DESCRIPTION OF THE LAND, FOR A PERIOD OF NOT LESS THAN THREE CALENDAR YEARS; (C) THE PROCEDURE FOR TESTING OF INDUSTRIAL HEMP PRODUCED IN THE STATE FOR DELTA-9 TETRAHYDROCANNABINOL LEVELS, USING POST DECARBOXYLATION OR OTHER SIMILARLY RELIABLE METHODS; (D) THE PROCEDURE FOR EFFECTIVE DISPOSAL OF INDUSTRIAL HEMP PLANTS OR PRODUCTS DERIVED FROM HEMP THAT ARE PRODUCED IN VIOLATION OF THIS ARTI- CLE; (E) A PROCEDURE FOR CONDUCTING AT LEAST A RANDOM SAMPLE OF INDUSTRIAL HEMP PRODUCERS TO VERIFY THAT HEMP IS NOT PRODUCED IN VIOLATION OF THIS ARTICLE; (F) ANY REQUIRED SECURITY MEASURES; AND (G) SUCH OTHER AND FURTHER REGULATION AS THE COMMISSIONER DEEMS APPRO- PRIATE OR NECESSARY. § 52. Section 511 of the agriculture and markets law is REPEALED and a new section 511 is added to read as follows: § 511. PROHIBITIONS. EXCEPT AS AUTHORIZED BY STATE LAW, AND REGU- LATIONS PROMULGATED THEREUNDER, THE GROWTH, CULTIVATION, PROCESSING, SALE, AND/OR DISTRIBUTION OF INDUSTRIAL HEMP IS PROHIBITED. § 53. Section 512 of the agriculture and markets law is REPEALED and a new section 512 is added to read as follows: § 512. INDUSTRIAL HEMP DATA COLLECTION AND BEST FARMING PRACTICES. THE COMMISSIONER SHALL HAVE THE POWER TO COLLECT AND PUBLISH DATA AND RESEARCH CONCERNING, AMONG OTHER THINGS, THE GROWTH, CULTIVATION, PRODUCTION AND PROCESSING METHODS OF INDUSTRIAL HEMP AND PRODUCTS DERIVED FROM INDUSTRIAL HEMP AND WORK WITH THE CORNELL COOPERATIVE EXTENSION TO PROMOTE BEST FARMING PRACTICES FOR INDUSTRIAL HEMP WHICH ARE COMPATIBLE WITH STATE WATER QUALITY AND OTHER ENVIRONMENTAL OBJEC- TIVES. § 54. Sections 513 and 514 of the agriculture and markets law are REPEALED and a new section 513 is added to read as follows: § 513. ACCESS TO CRIMINAL HISTORY INFORMATION THROUGH THE DIVISION OF CRIMINAL JUSTICE SERVICES. IN CONNECTION WITH THE ADMINISTRATION OF THIS ARTICLE, THE COMMISSIONER IS AUTHORIZED TO REQUEST, RECEIVE AND REVIEW CRIMINAL HISTORY INFORMATION THROUGH THE DIVISION OF CRIMINAL JUSTICE SERVICES (DIVISION) WITH RESPECT TO ANY PERSON SEEKING A LICENSE OR AUTHORIZATION TO UNDERTAKE A HEMP PILOT PROJECT. AT THE COMMISSION- ER'S REQUEST, EACH RESEARCHER, PRINCIPAL AND/OR OFFICER OF THE APPLICANT SHALL SUBMIT TO THE DEPARTMENT HIS OR HER FINGERPRINTS IN SUCH FORM AND IN SUCH MANNER AS SPECIFIED BY THE DIVISION, FOR THE PURPOSE OF CONDUCT- ING A CRIMINAL HISTORY SEARCH AND RETURNING A REPORT THEREON IN ACCORD- ANCE WITH THE PROCEDURES AND REQUIREMENTS ESTABLISHED BY THE DIVISION PURSUANT TO THE PROVISIONS OF ARTICLE THIRTY-FIVE OF THE EXECUTIVE LAW, WHICH SHALL INCLUDE THE PAYMENT OF THE PRESCRIBED PROCESSING FEES FOR THE COST OF THE DIVISION'S FULL SEARCH AND RETAIN PROCEDURES AND A NATIONAL CRIMINAL HISTORY RECORD CHECK. THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL SUBMIT SUCH FINGERPRINTS AND THE PROCESSING FEE TO THE S. 1509 189 A. 2009 DIVISION. THE DIVISION SHALL FORWARD TO THE COMMISSIONER A REPORT WITH RESPECT TO THE APPLICANT'S PREVIOUS CRIMINAL HISTORY, IF ANY, OR A STATEMENT THAT THE APPLICANT HAS NO PREVIOUS CRIMINAL HISTORY ACCORDING TO ITS FILES. FINGERPRINTS SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE SERVICES PURSUANT TO THIS SUBDIVISION MAY ALSO BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK. IF ADDITIONAL COPIES OF FINGERPRINTS ARE REQUIRED, THE APPLICANT SHALL FURNISH THEM UPON REQUEST. § 55. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the penal law, as added by chapter 90 of the laws of 2014, are amended to read as follows: § 179.00 Criminal diversion of medical [marihuana] CANNABIS; defi- nitions. The following definitions are applicable to this article: 1. "Medical [marihuana] CANNABIS" means medical [marihuana] CANNABIS as defined in [subdivision eight of section thirty-three hundred sixty of the public health law] SECTION THREE OF THE CANNABIS LAW. 2. "Certification" means a certification, made under section [thirty- three hundred sixty-one of the public health law] THIRTY OF THE CANNABIS LAW. § 179.05 Criminal diversion of medical [marihuana] CANNABIS; limita- tions. The provisions of this article shall not apply to: 1. a practitioner authorized to issue a certification who acted in good faith in the lawful course of his or her profession; or 2. a registered organization as that term is defined in [subdivision nine of section thirty-three hundred sixty of the public health law] SECTION THIRTY-FOUR OF THE CANNABIS LAW who acted in good faith in the lawful course of the practice of pharmacy; or 3. a person who acted in good faith seeking treatment for A medical condition or assisting another person to obtain treatment for a medical condition. § 179.10 Criminal diversion of medical [marihuana] CANNABIS in the first degree. A person is guilty of criminal diversion of medical [marihuana] CANNA- BIS in the first degree when he or she is a practitioner, as that term is defined in [subdivision twelve of section thirty-three hundred sixty of the public health law] SECTION THREE OF THE CANNABIS LAW, who issues a certification with knowledge of reasonable grounds to know that (i) the recipient has no medical need for it, or (ii) it is for a purpose other than to treat a serious condition as defined in [subdivision seven of section thirty-three hundred sixty of the public health law] SECTION THREE OF THE CANNABIS LAW. Criminal diversion of medical [marihuana] CANNABIS in the first degree is a class E felony. § 179.11 Criminal diversion of medical [marihuana] CANNABIS in the second degree. A person is guilty of criminal diversion of medical [marihuana] CANNA- BIS in the second degree when he or she sells, trades, delivers, or otherwise provides medical [marihuana] CANNABIS to another with know- ledge or reasonable grounds to know that the recipient is not registered under [title five-A of article thirty-three of the public health law] ARTICLE THREE OF THE CANNABIS LAW. Criminal diversion of medical [marihuana] CANNABIS in the second degree is a class B misdemeanor. § 179.15 Criminal retention of medical [marihuana] CANNABIS. S. 1509 190 A. 2009 A person is guilty of criminal retention of medical [marihuana] CANNA- BIS when, being a certified patient or designated caregiver, as those terms are defined in [subdivisions three and five of section thirty- three hundred sixty of the public health law, respectively] SECTION THREE OF THE CANNABIS LAW, he or she knowingly obtains, possesses, stores or maintains an amount of [marihuana] CANNABIS in excess of the amount he or she is authorized to possess under the provisions of [title five-A of article thirty-three of the public health law] ARTICLE THREE OF THE CANNABIS LAW. Criminal retention of medical [marihuana] CANNABIS is a class A misde- meanor. § 56. Section 220.78 of the penal law, as added by chapter 154 of the laws of 2011, is amended to read as follows: § 220.78 Witness or victim of drug or alcohol overdose. 1. A person who, in good faith, seeks health care for someone who is experiencing a drug or alcohol overdose or other life threatening medical emergency shall not be charged or prosecuted for a controlled substance offense under article two hundred twenty or a [marihuana] CANNABIS offense under article two hundred twenty-one of this title, other than an offense involving sale for consideration or other benefit or gain, or charged or prosecuted for possession of alcohol by a person under age twenty-one years under section sixty-five-c of the alcoholic beverage control law, or for possession of drug paraphernalia under article thirty-nine of the general business law, with respect to any controlled substance, [marihuana] CANNABIS, alcohol or paraphernalia that was obtained as a result of such seeking or receiving of health care. 2. A person who is experiencing a drug or alcohol overdose or other life threatening medical emergency and, in good faith, seeks health care for himself or herself or is the subject of such a good faith request for health care, shall not be charged or prosecuted for a controlled substance offense under this article or a [marihuana] CANNABIS offense under article two hundred twenty-one of this title, other than an offense involving sale for consideration or other benefit or gain, or charged or prosecuted for possession of alcohol by a person under age twenty-one years under section sixty-five-c of the alcoholic beverage control law, or for possession of drug paraphernalia under article thir- ty-nine of the general business law, with respect to any substance, [marihuana] CANNABIS, alcohol or paraphernalia that was obtained as a result of such seeking or receiving of health care. 3. Definitions. As used in this section the following terms shall have the following meanings: (a) "Drug or alcohol overdose" or "overdose" means an acute condition including, but not limited to, physical illness, coma, mania, hysteria or death, which is the result of consumption or use of a controlled substance or alcohol and relates to an adverse reaction to or the quan- tity of the controlled substance or alcohol or a substance with which the controlled substance or alcohol was combined; provided that a patient's condition shall be deemed to be a drug or alcohol overdose if a prudent layperson, possessing an average knowledge of medicine and health, could reasonably believe that the condition is in fact a drug or alcohol overdose and (except as to death) requires health care. (b) "Health care" means the professional services provided to a person experiencing a drug or alcohol overdose by a health care professional licensed, registered or certified under title eight of the education law or article thirty of the public health law who, acting within his or her S. 1509 191 A. 2009 lawful scope of practice, may provide diagnosis, treatment or emergency services for a person experiencing a drug or alcohol overdose. 4. It shall be an affirmative defense to a criminal sale controlled substance offense under this article or a criminal sale of [marihuana] CANNABIS offense under article two hundred twenty-one of this title, not covered by subdivision one or two of this section, with respect to any controlled substance or [marihuana] CANNABIS which was obtained as a result of such seeking or receiving of health care, that: (a) the defendant, in good faith, seeks health care for someone or for him or herself who is experiencing a drug or alcohol overdose or other life threatening medical emergency; and (b) the defendant has no prior conviction for the commission or attempted commission of a class A-I, A-II or B felony under this arti- cle. 5. Nothing in this section shall be construed to bar the admissibility of any evidence in connection with the investigation and prosecution of a crime with regard to another defendant who does not independently qualify for the bar to prosecution or for the affirmative defense; nor with regard to other crimes committed by a person who otherwise quali- fies under this section; nor shall anything in this section be construed to bar any seizure pursuant to law, including but not limited to pursu- ant to section thirty-three hundred eighty-seven of the public health law. 6. The bar to prosecution described in subdivisions one and two of this section shall not apply to the prosecution of a class A-I felony under this article, and the affirmative defense described in subdivision four of this section shall not apply to the prosecution of a class A-I or A-II felony under this article. § 57. Subdivision 1 of section 260.20 of the penal law, as amended by chapter 362 of the laws of 1992, is amended as follows: 1. He knowingly permits a child less than eighteen years old to enter or remain in or upon a place, premises or establishment where sexual activity as defined by article one hundred thirty, two hundred thirty or two hundred sixty-three of this [chapter] PART or activity involving controlled substances as defined by article two hundred twenty of this [chapter or involving marihuana as defined by article two hundred twen- ty-one of this chapter] PART is maintained or conducted, and he knows or has reason to know that such activity is being maintained or conducted; or § 58. Section 89-h of the state finance law, as added by chapter 90 of the laws of 2014, is amended to read as follows: § 89-h. Medical [marihuana] CANNABIS trust 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 "medical [marihuana] CANNABIS trust fund." 2. The medical [marihuana] CANNABIS trust fund shall consist of all moneys required to be deposited in the medical [marihuana] CANNABIS trust fund pursuant to the provisions of section four hundred ninety of the tax law. 3. The moneys in the medical [marihuana] CANNABIS trust fund shall be kept separate and shall not be commingled with any other moneys in the custody of the commissioner of taxation and finance and the state comp- troller. 4. The moneys of the medical [marihuana] CANNABIS trust fund, follow- ing appropriation by the legislature, shall be allocated upon a certif- icate of approval of availability by the director of the budget as S. 1509 192 A. 2009 follows: (a) Twenty-two and five-tenths percent of the monies shall be transferred to the counties in New York state in which the medical [marihuana] CANNABIS was manufactured and allocated in proportion to the gross sales originating from medical [marihuana] CANNABIS manufactured in each such county; (b) twenty-two and five-tenths percent of the moneys shall be transferred to the counties in New York state in which the medical [marihuana] CANNABIS was dispensed and allocated in propor- tion to the gross sales occurring in each such county; (c) five percent of the monies shall be transferred to the office of alcoholism and substance abuse services, which shall use that revenue for additional drug abuse prevention, counseling and treatment services; and (d) five percent of the revenue received by the department shall be transferred to the division of criminal justice services, which shall use that revenue for a program of discretionary grants to state and local law enforcement agencies that demonstrate a need relating to [title five-A of article thirty-three of the public health law] ARTICLE THREE OF THE CANNABIS LAW; said grants could be used for personnel costs of state and local law enforcement agencies. For purposes of this subdivision, the city of New York shall be deemed to be a county. § 59. Intentionally omitted. § 60. The state finance law is amended by adding a new section 99-ff to read as follows: § 99-FF. NEW YORK STATE CANNABIS REVENUE 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 STATE CANNABIS REVENUE FUND" (THE "FUND"). 2. MONIES IN THE FUND SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE CUSTODY OF THE COMPTROLLER OR THE COMMISSIONER OF TAXATION AND FINANCE. PROVIDED, HOWEVER THAT ANY MONIES 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, MONIES FROM THE FUND SHALL NOT BE USED TO MAKE PAYMENTS FOR ANY PURPOSE OTHER THAN THE PURPOSES SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS SECTION. 4. THE "NEW YORK STATE CANNABIS REVENUE FUND" SHALL CONSIST OF MONIES RECEIVED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDI- VISIONS (A) AND (B) OF SECTION FOUR HUNDRED NINETY-THREE OF THE TAX LAW AND ALL OTHER MONIES CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE. MONIES OF SUCH FUND SHALL BE EXPENDED FOR THE FOLLOWING PURPOSES: ADMINISTRATION OF THE REGULATED CANNABIS PROGRAM, DATA GATHER- ING, MONITORING AND REPORTING, THE GOVERNOR'S TRAFFIC SAFETY COMMITTEE, SMALL BUSINESS DEVELOPMENT AND LOANS, SUBSTANCE ABUSE, HARM REDUCTION AND MENTAL HEALTH TREATMENT AND PREVENTION, PUBLIC HEALTH EDUCATION AND INTERVENTION, RESEARCH ON CANNABIS USES AND APPLICATIONS, PROGRAM EVALU- ATION AND IMPROVEMENTS, AND ANY OTHER IDENTIFIED PURPOSE RECOMMENDED BY THE EXECUTIVE DIRECTOR OF THE OFFICE OF CANNABIS MANAGEMENT AND APPROVED BY THE DIRECTOR OF THE BUDGET. § 61. Subdivision 2 of section 3371 of the public health law, as amended by chapter 90 of the laws of 2014, is amended to read as follows: 2. The prescription monitoring program registry may be accessed, under such terms and conditions as are established by the department for S. 1509 193 A. 2009 purposes of maintaining the security and confidentiality of the informa- tion contained in the registry, by: (a) a practitioner, or a designee authorized by such practitioner pursuant to paragraph (b) of subdivision two of section thirty-three hundred forty-three-a or section thirty-three hundred sixty-one of this article, for the purposes of: (i) informing the practitioner that a patient may be under treatment with a controlled substance by another practitioner; (ii) providing the practitioner with notifications of controlled substance activity as deemed relevant by the department, including but not limited to a notification made available on a monthly or other periodic basis through the registry of controlled substances activity pertaining to his or her patient; (iii) allowing the practi- tioner, through consultation of the prescription monitoring program registry, to review his or her patient's controlled substances history as required by section thirty-three hundred forty-three-a [or section thirty-three hundred sixty-one] of this article; and (iv) providing to his or her patient, or person authorized pursuant to paragraph (j) of subdivision one of this section, upon request, a copy of such patient's controlled substance history as is available to the practitioner through the prescription monitoring program registry; or (b) a pharmacist, pharmacy intern or other designee authorized by the pharmacist pursuant to paragraph (b) of subdivision three of section thirty-three hundred forty-three-a of this article, for the purposes of: (i) consulting the prescription monitoring program registry to review the controlled substances history of an individual for whom one or more prescriptions for controlled substances or certifications for marihuana is presented to the pharmacist, pursuant to section thirty-three hundred forty-three-a of this article; and (ii) receiving from the department such notifications of controlled substance activity as are made avail- able by the department; or (c) an individual employed by a registered organization for the purpose of consulting the prescription monitoring program registry to review the controlled substances history of an individual for whom one or more certifications for [marihuana] CANNABIS is presented to that registered organization[, pursuant to section thirty-three hundred sixty-four of this article]. Unless otherwise authorized by this arti- cle, an individual employed by a registered organization will be provided access to the prescription monitoring program in the sole discretion of the commissioner. § 62. Subdivision 3 of section 853 of the general business law, as added by chapter 90 of the laws of 2014, is amended to read as follows: 3. This article shall not apply to any sale, furnishing or possession which is for a lawful purpose under [title five-A of article thirty- three of the public health law] THE CANNABIS LAW. § 63. Subdivision 5 of section 410.91 of the criminal procedure law, as amended by chapter 90 of the laws of 2014, is amended to read as follows: 5. For the purposes of this section, a "specified offense" is an offense defined by any of the following provisions of the penal law: burglary in the third degree as defined in section 140.20, criminal mischief in the third degree as defined in section 145.05, criminal mischief in the second degree as defined in section 145.10, grand larce- ny in the fourth degree as defined in subdivision one, two, three, four, five, six, eight, nine or ten of section 155.30, grand larceny in the third degree as defined in section 155.35 (except where the property consists of one or more firearms, rifles or shotguns), unauthorized use S. 1509 194 A. 2009 of a vehicle in the second degree as defined in section 165.06, criminal possession of stolen property in the fourth degree as defined in subdi- vision one, two, three, five or six of section 165.45, criminal possession of stolen property in the third degree as defined in section 165.50 (except where the property consists of one or more firearms, rifles or shotguns), forgery in the second degree as defined in section 170.10, criminal possession of a forged instrument in the second degree as defined in section 170.25, unlawfully using slugs in the first degree as defined in section 170.60, criminal diversion of medical [marihuana] CANNABIS in the first degree as defined in section 179.10 or an attempt to commit any of the aforementioned offenses if such attempt constitutes a felony offense; or a class B felony offense defined in article two hundred twenty where a sentence is imposed pursuant to paragraph (a) of subdivision two of section 70.70 of the penal law; or any class C, class D or class E controlled substance [or marihuana] CANNABIS felony offense as defined in article two hundred twenty or two hundred twenty-one. § 63-a. Subdivision 5 of section 410.91 of the criminal procedure law, as amended by section 8 of part AAA of chapter 56 of the laws of 2009, is amended to read as follows: 5. For the purposes of this section, a "specified offense" is an offense defined by any of the following provisions of the penal law: burglary in the third degree as defined in section 140.20, criminal mischief in the third degree as defined in section 145.05, criminal mischief in the second degree as defined in section 145.10, grand larce- ny in the fourth degree as defined in subdivision one, two, three, four, five, six, eight, nine or ten of section 155.30, grand larceny in the third degree as defined in section 155.35 (except where the property consists of one or more firearms, rifles or shotguns), unauthorized use of a vehicle in the second degree as defined in section 165.06, criminal possession of stolen property in the fourth degree as defined in subdi- vision one, two, three, five or six of section 165.45, criminal possession of stolen property in the third degree as defined in section 165.50 (except where the property consists of one or more firearms, rifles or shotguns), forgery in the second degree as defined in section 170.10, criminal possession of a forged instrument in the second degree as defined in section 170.25, unlawfully using slugs in the first degree as defined in section 170.60, or an attempt to commit any of the afore- mentioned offenses if such attempt constitutes a felony offense; or a class B felony offense defined in article two hundred twenty where a sentence is imposed pursuant to paragraph (a) of subdivision two of section 70.70 of the penal law; or any class C, class D or class E controlled substance or [marihuana] CANNABIS felony offense as defined in article two hundred twenty or two hundred twenty-one. § 64. This act shall take effect immediately; provided, however that sections thirty-seven and thirty-eight of this act shall take effect on April 1, 2020, and shall apply on and after such date: (a) to the culti- vation of cannabis flower and cannabis trim transferred by a cultivator who is not a wholesaler; (b) to the cultivation of cannabis flower and cannabis trim sold or transferred to a retail dispensary by a cultivator who is a wholesaler; and (c) to the sale or transfer of adult use canna- bis products to a retail dispensary; provided, further, that the amend- ments to article 179 of the penal law made by section fifty-five of this act shall not affect the repeal of such article and shall be deemed to be repealed therewith; provided further, that the amendments to section 89-h of the state finance law made by section fifty-eight of this act shall not affect the repeal of such section and shall be deemed repealed S. 1509 195 A. 2009 therewith; provided further, that the amendments to section 221.00 of the penal law made by section fifteen of this act shall be subject to the expiration of such section when upon such date the provisions of section fifteen-a of this act shall take effect; provided, however, that the amendments to subdivision 2 of section 3371 of the public health law made by section sixty-one of this act shall not affect the expiration of such subdivision and shall be deemed to expire therewith; provided further, that the amendments to subdivision 3 of section 853 of the general business law made by section sixty-two of this act shall not affect the repeal of such subdivision and shall be deemed to be repealed therewith; and provided further, that the amendments to subdivision 5 of section 410.91 of the penal law made by section sixty-three of this act shall be subject to the expiration and reversion of such subdivision when upon such date the provisions of section sixty-three-a of this act shall take effect. PART WW Section 1. Section 1166-a of the tax law, as added by section 1 of part F of chapter 25 of the laws of 2009, is amended to read as follows: § 1166-a. Special supplemental tax on passenger car rentals WITHIN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (a) In addition to the tax imposed under section eleven hundred sixty of this article and in addition to any tax imposed under any other article of this chapter, there is hereby imposed and there shall be paid a tax at the rate of five percent upon the receipts from every rental of a passenger car which is a retail sale of such passenger car within the metropolitan commuter transportation district as defined in [subdivision] SUBSECTION (a) of section eight hundred of this chapter. (b) Except to the extent that a passenger car rental described in subdivision (a) of this section, OR SECTION ELEVEN HUNDRED SIXTY-SIX-B OF THIS ARTICLE, has already been or will be subject to the tax imposed under such subdivision OR SECTION and except as otherwise exempted under this article, there is hereby imposed on every person and there shall be paid a use tax for the use within the metropolitan commuter transporta- tion district as defined in [subdivision] SUBSECTION (a) of section eight hundred of this chapter; of any passenger car rented by the user [which] THAT is a purchase at retail of such passenger car, but not including any lease of a passenger car to which subdivision (i) of section eleven hundred eleven of this chapter applies. For purposes of this [paragraph] SUBDIVISION, the tax shall be at the rate of five percent of the consideration given or contracted to be given for such property, or for the use of such property, including any charges for shipping or delivery as described in paragraph three of subdivision (b) of section eleven hundred one of this chapter, but excluding any credit for tangible personal property accepted in part payment and intended for resale. § 2. The tax law is amended by adding a new section 1166-b to read as follows: § 1166-B. SPECIAL SUPPLEMENTAL TAX ON PASSENGER CAR RENTALS OUTSIDE OF THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (A) IN ADDITION TO THE TAX IMPOSED UNDER SECTION ELEVEN HUNDRED SIXTY OF THIS ARTICLE AND IN ADDITION TO ANY TAX IMPOSED UNDER ANY OTHER ARTICLE OF THIS CHAPTER, THERE IS HEREBY IMPOSED AND THERE SHALL BE PAID A TAX AT THE RATE OF FIVE PERCENT UPON THE RECEIPTS FROM EVERY RENTAL OF A PASSENGER CAR THAT IS NOT SUBJECT TO THE TAX DESCRIBED IN SECTION ELEVEN HUNDRED S. 1509 196 A. 2009 SIXTY-SIX-A OF THIS ARTICLE, BUT WHICH IS A RETAIL SALE OF SUCH PASSEN- GER CAR WITHIN THE STATE. (B) EXCEPT TO THE EXTENT THAT A PASSENGER CAR RENTAL DESCRIBED IN SUBDIVISION (A) OF THIS SECTION OR IN SECTION ELEVEN HUNDRED SIXTY-SIX-A OF THIS ARTICLE, HAS ALREADY BEEN SUBJECT TO THE TAX IMPOSED UNDER SUCH SUBDIVISION OR SECTION, AND EXCEPT AS OTHERWISE EXEMPTED UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED ON EVERY PERSON AND THERE SHALL BE PAID A USE TAX FOR THE USE WITHIN THE STATE OF ANY PASSENGER CAR RENTED BY THE USER THAT IS A PURCHASE AT RETAIL OF SUCH PASSENGER CAR, BUT NOT INCLUDING ANY LEASE OF A PASSENGER CAR TO WHICH SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS CHAPTER APPLIES. FOR PURPOSES OF THIS SUBDIVISION, THE TAX SHALL BE AT THE RATE OF FIVE PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH PROPERTY, OR FOR THE USE OF SUCH PROPERTY, INCLUDING ANY CHARGES FOR SHIPPING OR DELIVERY AS DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, BUT EXCLUDING ANY CREDIT FOR TANGIBLE PERSONAL PROPERTY ACCEPTED IN PART PAYMENT AND INTENDED FOR RESALE. § 3. Section 1167 of the tax law, as amended by section 3 of part F of chapter 25 of the laws of 2009, is amended to read as follows: § 1167. Deposit and disposition of revenue. All taxes, interest and penalties 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, except that after reserving amounts in accordance with such section one hundred seventy-one-a of this chapter, the remainder shall be paid by the comptroller to the credit of the highway and bridge trust fund established by section eighty-nine-b of the state finance law, provided, however[,]: (A) taxes, interest and penalties collected or received pursuant to section eleven hundred sixty-six-a of this article shall be paid to the credit of the metropolitan transportation authority aid trust account of the metropol- itan transportation authority financial assistance fund established by section ninety-two-ff of the state finance law; AND (B) TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED PURSUANT TO SECTION ELEVEN HUNDRED SIXTY-SIX-B OF THIS ARTICLE SHALL BE PAID TO THE CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT ESTABLISHED BY SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW. § 4. This act shall take effect September 1, 2019, and shall apply to rentals of passenger cars commencing on and after such date whether or not under a prior contract; provided, however where such passenger car rentals are billed on a monthly, quarterly or other period basis, the tax imposed by this act shall apply to the rental for such period if more than half of the days included in such period are days subsequent to such effective date. § 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 WW of this act shall be as specifically set forth in the last section of such Parts.
2019-A2009A - Details
- See Senate Version of this Bill:
- S1509
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2019-A2009A - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2019-2020 state fiscal year; relates to the effectiveness of provisions relating to mandatory electronic filing of tax documents (Part A); relates to amending the employee training incentive program (Part B); relates to including in the apportionment fraction receipts constituting net global intangible low-taxed income (Part C)
2019-A2009A - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 1509--A A. 2009--A S E N A T E - A S S E M B L Y January 18, 2019 ___________ 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 part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, in relation to making perma- nent provisions relating to mandatory electronic filing of tax docu- ments; and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto (Part A); to amend the economic development law, in relation to the employee training incentive program (Part B); to amend the tax law and the administrative code of the city of New York, in relation to including in the apportionment fraction receipts constituting net global intan- gible low-taxed income (Part C); to amend the tax law and the adminis- trative code of the city of New York, in relation to the adjusted basis for property used to determine whether a manufacturer is a qual- ified New York manufacturer (Part D); to amend part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program, in relation to extending the effectiveness thereof (Part E); to amend the tax law in relation to the inclusion in a decedent's New York gross estate any qualified terminable interest property for which a prior deduction was allowed and certain pre-death gifts (Part F); to amend the tax law, in relation to requiring marketplace providers to collect sales tax (Part G); to amend the tax law, in relation to eliminating the reduced tax rates under the sales and use tax with respect to certain gas and electric service; and to repeal certain provisions of the tax law and the administrative code of the city of New York related thereto (Part H); to amend the real property tax law, in relation to the determination and use of state equalization rates
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12574-02-9 S. 1509--A 2 A. 2009--A (Part I); to amend the real property tax law and local finance law, in relation to local option disaster assessment relief (Subpart A); to amend the real property tax law, in relation to authorizing agreements for assessment review services (Subpart B); to amend the real property tax law, in relation to the training of assessors and county directors of real property tax services (Subpart C); to amend the real property tax law, in relation to providing certain notifications electronically (Subpart D); to amend the real property tax law, in relation to the valuation and taxable status dates of special franchise property (Subpart E); and to amend the real property tax law, in relation to the reporting requirements of power plants (Subpart F) (Part J); to repeal section 3-d of the general municipal law, relating to certif- ication of compliance with tax levy limit (Part K); to amend the tax law, in relation to creating an employer-provided child care credit (Part L); to amend the tax law, in relation to including gambling winnings in New York source income and requiring withholding thereon (Part M); to amend the tax law, in relation to the farm workforce retention credit (Part N); to amend the tax law, in relation to updat- ing tax preparer penalties; to amend part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related information and relating to the voluntary compliance initi- ative, in relation to eliminating the expiration thereof; and to repeal certain provisions of the tax law, relating to tax preparer penalties (Part O); to amend the tax law, in relation to extending the top personal income tax rate for five years (Part P); to amend the tax law and the administrative code of the city of New York, in relation to extending for five years the limitations on itemized deductions for individuals with incomes over one million dollars (Part Q); to amend the tax law, in relation to extending the clean heating fuel credit for three years (Part R); to repeal subdivision (e) of section 23 of part U of chapter 61 of the laws of 2011 amending the real property tax law and other laws relating to establishing standards for elec- tronic tax administration (Part S); to amend the cooperative corpo- rations law and the rural electric cooperative law, in relation to eliminating certain license fees (Part T); to amend the tax law, in relation to a credit for the rehabilitation of historic properties for state owned property leased to private entities (Part U); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part V); to amend the mental hygiene law and the tax law, in relation to the creation and adminis- tration of a tax credit for employment of eligible individuals in recovery from a substance use disorder (Part W); to amend the tax law and the administrative code of the city of New York, in relation to excluding from entire net income certain contributions to the capital of a corporation (Part X); to amend the tax law, in relation to estab- lishing a conditional tax on carried interest (Part Y); to amend the tax law, the administrative code of the city of New York, and chapter 369 of the laws of 2018 amending the tax law relating to unrelated business taxable income of a taxpayer, in relation to making technical corrections thereto (Part Z); to amend the real property tax law, in relation to tax exemptions for energy systems (Part AA); to amend the racing, pari-mutuel wagering and breeding law, in relation to employ- ees of the state gaming commission (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the thoroughbred and standardbred breeding funds (Part CC); to amend the racing, pari- mutuel wagering and breeding law, in relation to the office of the S. 1509--A 3 A. 2009--A gaming inspector general; and to repeal title 9 of article 13 of the racing, pari-mutuel wagering and breeding law relating to the gaming inspector general (Subpart A); to amend the racing, pari-mutuel wager- ing and breeding law, in relation to appointees to the thoroughbred breeding and development fund (Subpart B); to amend the public offi- cers law and the racing, pari-mutuel wagering and breeding law, in relation to the Harry M. Zweig memorial fund (Subpart C); and to amend the tax law, in relation to the prize payment amounts and revenue distributions of lottery game sales, and use of unclaimed prize funds (Subpart D)(Part DD); 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 EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to the deductibility of promotional credits (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to the operations of off-track betting corporations (Part GG); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of- state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposi- tion of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part HH); to amend the racing, pari-mutuel wagering and breeding law, in relation to equine drug testing standards (Part II); to amend part EE of chap- ter 59 of the laws of 2018, amending the racing, pari-mutuel wagering and breeding law, relating to adjusting the franchise payment estab- lishing an advisory committee to review the structure, operations and funding of equine drug testing and research, in relation to the date of delivery for recommendations; and to amend the racing, pari-mutuel wagering and breeding law, in relation to the advisory committee on equine drug testing, and equine lab testing provider restrictions removal (Part JJ); to amend the racing, pari-mutuel wagering and breeding law, in relation to state gaming commission occupational licenses (Part KK); to amend the real property tax law and the tax law, in relation to the determination of STAR tax savings (Part LL); to amend the tax law, in relation to cooperative housing corporation information returns (Part MM); to amend the tax law, in relation to making a technical correction to the enhanced real property tax circuit breaker credit (Part NN); to amend the tax law, in relation to mobile home reporting requirements (Part OO); to amend the real prop- erty tax law and the tax law, in relation to eligibility for STAR exemptions and credits (Part PP); to amend the real property tax law and the tax law, in relation to authorizing the disclosure of certain information to assessors (Part QQ); to amend the real property tax law and the tax law, in relation to the income limits for STAR benefits (Part RR); to amend the real property tax law, in relation to clarify- ing certain notices on school tax bills (Part SS); to amend the real property tax law and the tax law, in relation to making the STAR program more accessible to taxpayers (Part TT); to amend the public health law, in relation to increasing the purchasing age for tobacco S. 1509--A 4 A. 2009--A products and electronic cigarettes from eighteen to twenty-one; prohibiting sales of tobacco products and electronic cigarettes in all pharmacies; prohibiting the acceptance of price reduction instruments for both tobacco products and electronic cigarettes; prohibiting the display of tobacco products or electronic cigarettes in stores; clari- fying that the department of health has the authority to promulgate regulations that restrict the sale or distribution of electronic ciga- rettes or electronic liquids that have a characterizing flavor, and the use of names for characterizing flavors; prohibiting smoking inside and on the grounds of all hospitals licensed or operated by the office of mental health; taxing electronic liquid; and requiring that electronic cigarettes be sold only through licensed vapor products retailers; to amend the general business law, in relation to the pack- aging of vapor products; to amend the tax law, in relation to imposing a supplemental tax on vapor products; to amend the state finance law, in relation to adding revenues from the supplemental tax on vapor products to the health care reform act resource fund; and repealing paragraph (e) of subdivison 1 of section 1399-cc of the public health law relating to the definitions of nicotine, electronic liquid and e-liquid (Part UU); relating to constituting a new chapter 7-A of the consolidated laws, in relation to the creation of a new office of cannabis management, as an independent entity within the division of alcoholic beverage control, providing for the licensure of persons authorized to cultivate, process, distribute and sell cannabis and the use of cannabis by persons aged twenty-one or older; to amend the public health law, in relation to the description of cannabis; to amend the vehicle and traffic law, in relation to making technical changes regarding the definition of cannabis; to amend the penal law, in relation to the qualification of certain offenses involving canna- bis and to exempt certain persons from prosecution for the use, consumption, display, production or distribution of cannabis; to amend the tax law, in relation to providing for the levying taxes on canna- bis; to amend the criminal procedure law, the civil practice law and rules, the general business law, the state finance law, the executive law, the penal law and the vehicle and traffic law, in relation to making conforming changes; to repeal sections 221.10 and 221.30 of the penal law relating to the criminal possession and sale of cannabis; to amend chapter 90 of the laws of 2014 amending the public health law, the tax law, the state finance law, the general business law, the penal law and the criminal procedure law relating to medical use of marihuana, in relation to the effectiveness thereof; to repeal para- graph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia; and making an appropriation therefor (Part VV); to amend the tax law, in relation to imposing a special tax on passenger car rentals outside of the metropolitan commuter transportation district (Part WW); and to amend the tax law in relation to imposing a tax on Opioids (Part XX) 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 2019-2020 state fiscal year. Each component is wholly contained within a Part identified as Parts A through XX. The effective date for each particular S. 1509--A 5 A. 2009--A 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 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. Paragraph 10 of subsection (g) of section 658 of the tax law is REPEALED. § 2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin- istrative code of the city of New York is REPEALED. § 3. Paragraph 5 of subsection (u) of section 685 of the tax law is REPEALED. § 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis- trative code of the city of New York is REPEALED. § 5. Section 23 of part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, as amended by section 5 of part G of chapter 60 of the laws of 2016, is amended to read as follows: § 23. This act shall take effect immediately; provided, however, that: (a) the amendments to section 29 of the tax law made by section thir- teen of this act shall apply to tax documents filed or required to be filed on or after the sixtieth day after which this act shall have become a law [and shall expire and be deemed repealed December 31, 2019], provided however that the amendments to paragraph 4 of subdivi- sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of section 29 of the tax law made by section thirteen of this act with regard to individual taxpayers shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eighty-five percent; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission of the date of the issuance of such report 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; (b) sections fourteen, fifteen, sixteen and seventeen of this act shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; AND (c) sections fourteen-a and fifteen-a of this act shall take effect September 15, 2011 and expire and be deemed repealed December 31, 2012 but shall take effect only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is eighty-five percent or greater[; (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this act shall take effect January 1, 2020 but only if the commissioner of taxation and finance has reported in the report required by section S. 1509--A 6 A. 2009--A seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; and (e) sections twenty-one and twenty-one-a of this act shall expire and be deemed repealed December 31, 2019]. § 6. This act shall take effect immediately. PART B Section 1. Subdivision 3 of section 441 of the economic development law, as amended by section 1 of part L of chapter 59 of the laws of 2017, is amended to read as follows: 3. "Eligible training" means (a) training provided by THE BUSINESS ENTITY OR an approved provider that is: (i) to upgrade, retrain or improve the productivity of employees; (ii) provided to employees in connection with a significant capital investment by a participating business entity; (iii) determined by the commissioner to satisfy a business need on the part of a participating business entity; (iv) not designed to train or upgrade skills as required by a federal or state entity; (v) not training the completion of which may result in the awarding of a license or certificate required by law in order to perform a job func- tion; and (vi) not culturally focused training; or (b) an internship program in advanced technology [or], life sciences, SOFTWARE DEVELOPMENT OR CLEAN ENERGY approved by the commissioner and provided by THE BUSINESS ENTITY OR an approved provider, on or after August first, two thousand fifteen, to provide employment and experience opportunities for current students, recent graduates, and recent members of the armed forces. § 2. Paragraph (b) of subdivision 1 of section 442 of the economic development law, as amended by section 2 of part L of chapter 59 of the laws of 2017, is amended to read as follows: (b) The business entity must demonstrate that it is CONDUCTING ELIGI- BLE TRAINING OR obtaining eligible training from an approved provider; § 3. Paragraph (a) of subdivision 2 of section 443 of the economic development law, as added by section 1 of part O of chapter 59 of the laws of 2015, is amended to read as follows: (a) provide such documentation as the commissioner may require in order for the commissioner to determine that the business entity intends to CONDUCT ELIGIBLE TRAINING OR procure eligible training for its employees from an approved provider; § 4. This act shall take effect immediately. PART C Section 1. Section 210-A of the tax law is amended by adding a new subdivision 5-a to read as follows: 5-A. NET GLOBAL INTANGIBLE LOW-TAXED INCOME. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE APPORTIONMENT FRACTION AS PROVIDED IN THIS SUBDIVISION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRAC- TION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE APPORTIONMENT FRACTION. FOR S. 1509--A 7 A. 2009--A PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE. § 2. Section 11-654.2 of the administrative code of the city of New York is amended by adding a new subdivision 5-a to read as follows: 5-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE RECEIPTS FRACTION AS PROVIDED IN THIS SUBDIVISION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW- TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC- TION. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE. § 3. Subparagraph (2) of paragraph (a) of subdivision (3) of section 11-604 of the administrative code of the city of New York is amended by adding a new clause (E) to read as follows: (E) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PARAGRAPH, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE RECEIPTS FRACTION AS PROVIDED IN THIS CLAUSE. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. FOR PURPOSES OF THIS CLAUSE, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT THAT WOULD HAVE BEEN REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION THAT WOULD HAVE BEEN ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE IF THE TAXPAYER HAD NOT MADE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER ONE OF THE INTERNAL REVENUE CODE. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART D Section 1. Subparagraph (vi) of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 11 of part T of chap- ter 59 of the laws of 2015, is amended to read as follows: (vi) for taxable years beginning on or after January first, two thou- sand fourteen, the amount prescribed by this paragraph for a taxpayer [which] THAT is a qualified New York manufacturer, shall be computed at the rate of zero percent of the taxpayer's business income base. The term "manufacturer" shall mean a taxpayer [which] THAT during the taxa- ble year is principally engaged in the production of goods by manufac- turing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture or commercial fish- ing. However, the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity shall not be qualifying activities for a manufacturer under this subparagraph. Moreover, in the case of a combined report, the combined group shall be considered a "manufacturer" for purposes of this subparagraph only if the combined group during the S. 1509--A 8 A. 2009--A taxable year is principally engaged in the activities set forth in this paragraph, or any combination thereof. A taxpayer or, in the case of a combined report, a combined group shall be "principally engaged" in activities described above if, during the taxable year, more than fifty percent of the gross receipts of the taxpayer or combined group, respec- tively, are derived from receipts from the sale of goods produced by such activities. In computing a combined group's gross receipts, inter- corporate receipts shall be eliminated. A "qualified New York manufac- turer" is a manufacturer [which] THAT has property in New York [which] THAT is described in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of section two hundred ten-B of this article and either (I) the adjusted basis of such property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (II) all of its real and personal property is located in New York. A taxpayer or, in the case of a combined report, a combined group, that does not satisfy the principally engaged test may be a qual- ified New York manufacturer if the taxpayer or the combined group employs during the taxable year at least two thousand five hundred employees in manufacturing in New York and the taxpayer or the combined group has property in the state used in manufacturing, the adjusted basis of which for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one hundred million dollars. § 2. Subparagraph 2 of paragraph (b) of subdivision 1 of section 210 of the tax law, as amended by section 18 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (2) For purposes of subparagraph one of this paragraph, the term "manufacturer" shall mean a taxpayer [which] THAT during the taxable year is principally engaged in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agricul- ture, horticulture, floriculture, viticulture or commercial fishing. Moreover, for purposes of computing the capital base in a combined report, the combined group shall be considered a "manufacturer" for purposes of this subparagraph only if the combined group during the taxable year is principally engaged in the activities set forth in this subparagraph, or any combination thereof. A taxpayer or, in the case of a combined report, a combined group shall be "principally engaged" in activities described above if, during the taxable year, more than fifty percent of the gross receipts of the taxpayer or combined group, respec- tively, are derived from receipts from the sale of goods produced by such activities. In computing a combined group's gross receipts, inter- corporate receipts shall be eliminated. A "qualified New York manufac- turer" is a manufacturer that has property in New York that is described in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of section two hundred ten-B of this article and either (i) the adjusted basis of that property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (ii) all of its real and personal property is located in New York. In addi- tion, a "qualified New York manufacturer" means a taxpayer that is defined as a qualified emerging technology company under paragraph (c) of subdivision one of section thirty-one hundred two-e of the public authorities law regardless of the ten million dollar limitation expressed in subparagraph one of such paragraph. A taxpayer or, in the case of a combined report, a combined group, that does not satisfy the principally engaged test may be a qualified New York manufacturer if the taxpayer or the combined group employs during the taxable year at least two thousand five hundred employees in manufacturing in New York and the S. 1509--A 9 A. 2009--A taxpayer or the combined group has property in the state used in manu- facturing, the adjusted basis of which for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one hundred million dollars. § 3. Clause (ii) of subparagraph 4 of paragraph (k) of subdivision 1 of section 11-654 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: (ii) A "qualified New York manufacturing corporation" is a manufactur- ing corporation that has property in the state [which] THAT is described in subparagraph five of this paragraph and either (A) the adjusted basis of such property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (B) more than fifty [percentum] PERCENT of its real and personal property is located in the state. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART E Section 1. Section 5 of part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program is amended to read as follows: § 5. This act shall take effect January 1, 2015, and shall apply to taxable years beginning on and after that date; provided, however, that this act shall expire and be deemed repealed January 1, [2020] 2023. § 2. This act shall take effect immediately. PART F Section 1. Paragraph 3 of subsection (a) of section 954 of the tax law, as amended by section 2 of part BB of chapter 59 of the laws of 2015, is amended to read as follows: (3) Increased by the amount of any taxable gift under section 2503 of the internal revenue code not otherwise included in the decedent's federal gross estate, made during the three year period ending on the decedent's date of death, but not including any gift made: (A) when the decedent was not a resident of New York state; or (B) before April first, two thousand fourteen; or (C) that is real or tangible personal property having an actual situs outside New York state at the time the gift was made. Provided, however that this paragraph shall not apply to the estate of a [decendent] DECEDENT dying on or after January first, two thousand [nineteen] TWENTY-SIX. § 2. Subsection (a) of section 954 of the tax law is amended by adding a new paragraph 4 to read as follows: (4) INCREASED BY THE VALUE OF ANY PROPERTY NOT OTHERWISE ALREADY INCLUDED IN THE DECEDENT'S FEDERAL GROSS ESTATE IN WHICH THE DECEDENT HAD A QUALIFYING INCOME INTEREST FOR LIFE IF A DEDUCTION WAS ALLOWED ON THE RETURN OF THE TAX IMPOSED BY THIS ARTICLE WITH RESPECT TO THE TRANS- FER OF SUCH PROPERTY TO THE DECEDENT BY REASON OF THE APPLICATION OF PARAGRAPH (7) OF SUBSECTION (B) OF SECTION 2056 OF THE INTERNAL REVENUE CODE, AS MADE APPLICABLE TO THE TAX IMPOSED BY THIS ARTICLE BY SECTION NINE HUNDRED NINETY-NINE-A OF THIS ARTICLE, WHETHER OR NOT A FEDERAL ESTATE TAX RETURN WAS REQUIRED TO BE FILED BY THE ESTATE OF THE TRANS- FERRING SPOUSE. S. 1509--A 10 A. 2009--A § 3. Subsection (c) of section 955 of the tax law, as added by section 4 of part X of chapter 59 of the laws of 2014, is amended to read as follows: (c) Qualified terminable interest property election.-- Except as otherwise provided in this subsection, the election referred to in para- graph (7) of subsection (b) of section 2056 of the internal revenue code shall not be allowed under this article unless such election was made with respect to the federal estate tax return required to be filed under the provisions of the internal revenue code. If such election was made for the purposes of the federal estate tax, then such election must also be made by the executor on the return of the tax imposed by this arti- cle. Where no federal estate tax return is required to be filed, the executor [may] MUST make the election referred to in such paragraph (7) with respect to the tax imposed by this article on the return of the tax imposed by this article. Any election made under this subsection shall be irrevocable. § 4. This act shall take effect immediately; provided however that section one of this act shall apply to estates of decedents dying on or after January 1, 2019 and sections two and three of this act shall apply to estates of decedents dying on or after April 1, 2019. PART G Section 1. Section 1101 of the tax law is amended by adding a new subdivision (e) to read as follows: (E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH MARKETPLACE SELLER OR SELLERS. A PERSON "FACILITATES A SALE OF TANGIBLE PERSONAL PROPERTY" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTER- NET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFIL- IATE 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, A "SALE OF TANGIBLE PERSONAL PROPERTY" SHALL NOT INCLUDE THE RENTAL OF A PASSENGER CAR AS DESCRIBED IN SECTION ELEVEN HUNDRED SIXTY OF THIS CHAPTER BUT SHALL INCLUDE A LEASE DESCRIBED IN SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. FOR PURPOSES OF THIS PARAGRAPH, PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN ANOTHER, 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. (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. S. 1509--A 11 A. 2009--A § 2. Subdivision 1 of section 1131 of the tax law, as amended by section 1 of part X of chapter 59 of the laws of 2018, 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, 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. § 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: (A) 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 (B) 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: (A) THE MARKETPLACE SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (B) 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 S. 1509--A 12 A. 2009--A 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: (A) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A MARKETPLACE PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM THE MARKET- PLACE PROVIDER FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY, WITH RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY OCCURS IN THE STATE; AND (B) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE PROVIDER AND MARKETPLACE SELLER WILL HAVE THE SAME EFFECT AS A MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION. § 4. Section 1133 of the tax law is amended by adding a new subdivi- sion (f) to read as follows: (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR- MATION GIVEN TO THE MARKETPLACE PROVIDER BY THE MARKETPLACE SELLER. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE SELLER AND MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 46 of part K of chapter 61 of the laws of 2011, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE MARKETPLACE SELLER HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF- ICATE OF COLLECTION FROM THE MARKETPLACE PROVIDER OR THE MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE PROVIDER AND THE MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION ONE OF SECTION ELEVEN S. 1509--A 13 A. 2009--A HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY IS ACCURATE. § 6. Section 1142 of the tax law is amended by adding a new subdivi- sion 15 to read as follows: (15) TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAVE 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. § 7. This act shall take effect immediately and shall apply to sales made on or after September 1, 2019. PART H 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 is REPEALED. § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- trative code of the city of New York is REPEALED. § 5. This act shall take effect June 1, 2019, and shall apply to sales made and services rendered on and after that date, whether or not under a prior contract. PART I Section 1. Subdivision 3 of section 1204 of the real property tax law, as added by chapter 115 of the laws of 2018, is amended to read as follows: 3. Where the tentative equalization rate is not within plus or minus five [percentage points] PERCENT of the locally stated level of assess- ment, the assessor shall provide notice in writing to the local govern- ing body of any affected town, city, village, county and school district of the difference between the locally stated level of assessment and the tentative equalization rate. Such notice shall be made within ten days of the receipt of the tentative equalization rate, or within ten days of the filing of the tentative assessment roll, whichever is later, and shall provide the difference in the indicated total full value estimates of the locally stated level of assessment and the tentative equalization rate for the taxable property within each affected town, city, village, county and school district, where applicable. § 2. The real property tax law is amended by adding a new section 1211 to read as follows: § 1211. CONFIRMATION BY COMMISSIONER OF THE LOCALLY STATED LEVEL OF ASSESSMENT. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS TITLE, S. 1509--A 14 A. 2009--A BEFORE THE COMMISSIONER DETERMINES A TENTATIVE EQUALIZATION RATE FOR A CITY, TOWN OR VILLAGE, HE OR SHE SHALL EXAMINE THE ACCURACY OF THE LOCALLY STATED LEVEL OF ASSESSMENT APPEARING ON THE TENTATIVE ASSESSMENT ROLL. IF THE COMMISSIONER CONFIRMS THE LOCALLY STATED LEVEL OF ASSESS- MENT, THEN AS SOON THEREAFTER AS IS PRACTICABLE, HE OR SHE SHALL ESTAB- LISH AND CERTIFY SUCH LOCALLY STATED LEVEL OF ASSESSMENT AS THE FINAL EQUALIZATION RATE FOR SUCH CITY, TOWN OR VILLAGE IN THE MANNER PROVIDED BY SECTIONS TWELVE HUNDRED TEN AND TWELVE HUNDRED TWELVE OF THIS TITLE. THE PROVISIONS OF SECTIONS TWELVE HUNDRED FOUR, TWELVE HUNDRED SIX AND TWELVE HUNDRED EIGHT OF THIS TITLE SHALL NOT APPLY IN SUCH CASES, UNLESS THE COMMISSIONER FINDS THAT THE FINAL ASSESSMENT ROLL DIFFERS FROM THE TENTATIVE ASSESSMENT ROLL TO AN EXTENT THAT RENDERS THE LOCALLY STATED LEVEL OF ASSESSMENT INACCURATE, AND RESCINDS THE FINAL EQUALIZATION RATE ON THAT BASIS. § 3. Paragraph (d) of subdivision 1 of section 1314 of the real prop- erty tax law, as amended by chapter 158 of the laws of 2002, is amended to read as follows: (d) (I) Such district superintendent shall also determine what propor- tion of any tax to be levied in such school district for school purposes during the current school year shall be levied upon each part of a city or town included in such school district by dividing the sum of the full valuation of real property in such part of a city or town by the total of all such full valuations of real property in such school district. PROVIDED, HOWEVER, THAT PRIOR TO THE LEVY OF TAXES, THE GOVERNING BODY OF THE SCHOOL DISTRICT MAY ADOPT A RESOLUTION DIRECTING SUCH PROPORTIONS TO BE BASED UPON THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER EITHER A THREE-YEAR PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE TWO PRIOR SCHOOL YEARS, OR OVER A FIVE-YEAR PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE FOUR PRIOR SCHOOL YEARS. ONCE SUCH A RESOLUTION HAS BEEN ADOPTED, THE PROPORTIONS FOR ENSUING SCHOOL YEARS SHALL CONTINUE TO BE BASED UPON THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER THE SELECTED PERIOD, UNLESS THE RESOLUTION PROVIDES OTHERWISE OR IS REPEALED. (II) Such proportions shall be expressed in the nearest exact ten thousandths and the school authorities of such school district shall levy such a proportion of any tax to be raised in the school district during the current school year upon each part of a city or town included in such school district as shall have been determined by the district superintendent. A new proportion shall be determined for each school year thereafter by the district superintendent in accordance with the provisions of this section by the use of the latest state equalization rates. In any such school district that is not within the jurisdiction of a district superintendent of schools, the duties which would other- wise be performed by the district superintendent under the provisions of this section, shall be performed by the school authorities of such district. § 4. This act shall take effect immediately. PART J Section 1. This Part enacts into law major components of legislation relating to the improvement of the administration of real property taxa- tion in accordance with the real property tax law and other laws relat- ing thereto. Each component is wholly contained within a Subpart identi- fied as Subparts A through F. The effective date for each particular provision contained within such Subpart is set forth in the last section S. 1509--A 15 A. 2009--A 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 real property tax law is amended by adding a new section 497 to read as follows: § 497. ASSESSMENT RELIEF IN STATE DISASTER EMERGENCIES. 1. NOTWITH- STANDING ANY PROVISION OF LAW TO THE CONTRARY, DURING A STATE DISASTER EMERGENCY AS DEFINED BY SECTION TWENTY OF THE EXECUTIVE LAW, AN ELIGIBLE MUNICIPALITY MAY EXERCISE THE PROVISIONS OF THIS SECTION IF ITS GOVERN- ING BODY, BY THE SIXTIETH DAY FOLLOWING THE DATE UPON WHICH THE GOVERNOR DECLARES A STATE DISASTER EMERGENCY, PASSES A LOCAL LAW OR ORDINANCE, OR IN THE CASE OF A SCHOOL DISTRICT A RESOLUTION, ADOPTING THE PROVISIONS OF THIS SECTION. AN ELIGIBLE MUNICIPALITY MAY PROVIDE ASSESSMENT RELIEF FOR REAL PROPERTY THAT IS IMPACTED BY THE DISASTER THAT LED TO THE DECLARATION OF THE STATE DISASTER EMERGENCY, AND THAT IS LOCATED WITHIN SUCH MUNICIPALITY, AS PROVIDED IN SUBPARAGRAPHS (I), (II), (III) OR (IV) OF PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION ONLY IF ITS GOVERNING BODY SPECIFICALLY ELECTS TO DO SO AS PART OF SUCH LOCAL LAW, ORDINANCE OR RESOLUTION. A COPY OF ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL BE FILED WITH THE COMMISSIONER WITHIN TEN DAYS AFTER THE ADOPTION THEREOF. 2. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: A. "ELIGIBLE COUNTY" SHALL MEAN A COUNTY, OTHER THAN A COUNTY WHOLLY CONTAINED WITHIN A CITY, SPECIFICALLY REFERENCED WITHIN A DECLARATION BY THE GOVERNOR OF A STATE DISASTER EMERGENCY. B. "ELIGIBLE MUNICIPALITY" SHALL MEAN A MUNICIPAL CORPORATION, AS DEFINED BY SUBDIVISION TEN OF SECTION ONE HUNDRED TWO OF THIS CHAPTER, THAT IS EITHER: (I) AN ELIGIBLE COUNTY; OR (II) A CITY, TOWN, VILLAGE, SPECIAL DISTRICT, OR SCHOOL DISTRICT THAT IS WHOLLY OR PARTLY CONTAINED WITHIN AN ELIGIBLE COUNTY. C. "IMPACTED TAX ROLL" SHALL MEAN THE FINAL ASSESSMENT ROLL THAT SATISFIES BOTH OF THE FOLLOWING CONDITIONS: (A) THE ROLL IS BASED UPON A TAXABLE STATUS DATE OCCURRING PRIOR TO A DISASTER THAT IS THE SUBJECT OF A DECLARATION BY THE GOVERNOR OF A STATE DISASTER EMERGENCY; AND (B) TAXES LEVIED UPON THAT ROLL BY OR ON BEHALF OF A PARTICIPATING MUNICI- PALITY ARE PAYABLE WITHOUT INTEREST ON OR AFTER THE DATE OF THE DISAS- TER. D. "PARTICIPATING MUNICIPALITY" SHALL MEAN AN ELIGIBLE MUNICIPALITY THAT HAS PASSED A LOCAL LAW, ORDINANCE, OR RESOLUTION TO PROVIDE ASSESS- MENT RELIEF TO PROPERTY OWNERS WITHIN SUCH ELIGIBLE MUNICIPALITY PURSU- ANT TO THE PROVISIONS OF THIS SECTION. E. "TOTAL ASSESSED VALUE" SHALL MEAN THE TOTAL ASSESSED VALUE OF THE PARCEL PRIOR TO ANY AND ALL EXEMPTION ADJUSTMENTS. F. "IMPROVED VALUE" SHALL MEAN THE MARKET VALUE OF THE REAL PROPERTY IMPROVEMENTS EXCLUDING THE LAND. G. "PROPERTY" SHALL MEAN "REAL PROPERTY", "PROPERTY" OR "LAND" AS DEFINED UNDER PARAGRAPHS (A) THROUGH (G) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THIS CHAPTER. S. 1509--A 16 A. 2009--A 3. ASSESSMENT RELIEF FOR DISASTER VICTIMS IN AN ELIGIBLE COUNTY. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE REAL PROPER- TY IS IMPACTED BY A DISASTER THAT LED TO THE DECLARATION OF A STATE DISASTER EMERGENCY, AND SUCH PROPERTY IS LOCATED WITHIN A PARTICIPATING MUNICIPALITY, ASSESSMENT RELIEF SHALL BE GRANTED AS FOLLOWS: (I) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR REAL PROPERTY THAT LOST AT LEAST TEN PERCENT BUT LESS THAN TWENTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY FIFTEEN PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (II) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR REAL PROPERTY THAT LOST AT LEAST TWENTY PERCENT BUT LESS THAN THIRTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY TWENTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (III) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESS- MENT RELIEF FOR REAL PROPERTY THAT LOST AT LEAST THIRTY PERCENT BUT LESS THAN FORTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY THIRTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (IV) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR REAL PROPERTY THAT LOST AT LEAST FORTY PERCENT BUT LESS THAN FIFTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY FORTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (V) IF THE PROPERTY LOST AT LEAST FIFTY BUT LESS THAN SIXTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY FIFTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (VI) IF THE PROPERTY LOST AT LEAST SIXTY BUT LESS THAN SEVENTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY SIXTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (VII) IF THE PROPERTY LOST AT LEAST SEVENTY BUT LESS THAN EIGHTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY SEVENTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (VIII) IF THE PROPERTY LOST AT LEAST EIGHTY BUT LESS THAN NINETY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY EIGHTY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (IX) IF THE PROPERTY LOST AT LEAST NINETY BUT LESS THAN ONE HUNDRED PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY NINETY-FIVE PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (X) IF THE PROPERTY LOST ONE HUNDRED PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY ONE HUNDRED PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL. (XI) THE PERCENTAGE LOSS IN IMPROVED VALUE FOR THIS PURPOSE SHALL BE ADOPTED BY THE ASSESSOR FROM A WRITTEN FINDING OF THE FEDERAL EMERGENCY S. 1509--A 17 A. 2009--A MANAGEMENT AGENCY OR, WHERE NO SUCH FINDING EXISTS, SHALL BE DETERMINED BY THE ASSESSOR IN THE MANNER PROVIDED BY THIS SECTION, SUBJECT TO REVIEW BY THE BOARD OF ASSESSMENT REVIEW. (XII) WHERE THE ASSESSED VALUE OF A PROPERTY IS REDUCED PURSUANT TO THIS SECTION, THE DIFFERENCE BETWEEN THE PROPERTY'S ASSESSED VALUE AND ITS REDUCED ASSESSED VALUE SHALL BE EXEMPT FROM TAXATION. NO REDUCTION IN ASSESSED VALUE SHALL BE GRANTED PURSUANT TO THIS SECTION EXCEPT AS SPECIFIED ABOVE FOR SUCH COUNTIES. NO REDUCTION IN ASSESSED VALUE SHALL BE GRANTED PURSUANT TO THIS SECTION FOR PURPOSES OF ANY COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT THAT HAS NOT ADOPTED THE PROVISIONS OF THIS SECTION. (B) TO RECEIVE SUCH RELIEF PURSUANT TO THIS SECTION, A PROPERTY OWNER IN A PARTICIPATING MUNICIPALITY SHALL SUBMIT A WRITTEN REQUEST TO THE ASSESSOR ON A FORM PRESCRIBED BY THE COMMISSIONER WITHIN ONE HUNDRED TWENTY DAYS FOLLOWING THE DATE UPON WHICH THE STATE DISASTER EMERGENCY WAS DECLARED BY THE GOVERNOR, PROVIDED, HOWEVER, THAT SUCH ONE HUNDRED TWENTY DAY PERIOD MAY BE EXTENDED TO A TOTAL OF UP TO ONE HUNDRED EIGHTY DAYS BY A LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED BY THE GOVERNING BODY OF THE ASSESSING UNIT. A COPY OF ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL BE FILED WITH THE COMMISSIONER. SUCH REQUEST SHALL ATTACH ANY AND ALL DETERMINATIONS BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY, AND ANY AND ALL REPORTS BY AN INSURANCE ADJUSTER, SHALL DESCRIBE IN REASONABLE DETAIL THE DAMAGE CAUSED TO THE PROPERTY BY THE DISASTER AND THE CONDITION OF THE PROPERTY FOLLOWING THE DISASTER, AND SHALL BE ACCOMPANIED BY SUPPORTING DOCUMENTATION, IF AVAILABLE. (C) UPON RECEIVING SUCH A REQUEST, THE ASSESSOR SHALL ADOPT THE FIND- ING BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY OR, IF SUCH FINDING DOES NOT EXIST, THE ASSESSOR SHALL MAKE A FINDING AS TO WHETHER THE PROPERTY LOST AT LEAST FIFTY PERCENT OF ITS IMPROVED VALUE OR, IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR REAL PROPERTY THAT LOST A LESSER PERCENTAGE OF IMPROVED VALUE SUCH LESSER PERCENTAGE OF ITS IMPROVED VALUE, AS A RESULT OF A DISASTER. THE ASSESSOR SHALL THEREAFTER ADOPT OR CLASSIFY THE PERCENTAGE LOSS OF IMPROVED VALUE WITH- IN ONE OF THE FOLLOWING RANGES: (I) AT LEAST TEN PERCENT BUT LESS THAN TWENTY PERCENT, PROVIDED THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE, (II) AT LEAST TWENTY PERCENT BUT LESS THAN THIRTY PERCENT, PROVIDED THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE, (III) AT LEAST THIRTY PERCENT BUT LESS THAN FORTY PERCENT, PROVIDED THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE, (IV) AT LEAST FORTY PERCENT BUT LESS THAN FIFTY PERCENT, PROVIDED THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE, (V) AT LEAST FIFTY PERCENT BUT LESS THAN SIXTY PERCENT, (VI) AT LEAST SIXTY PERCENT BUT LESS THAN SEVENTY PERCENT, (VII) AT LEAST SEVENTY PERCENT BUT LESS THAN EIGHTY PERCENT, (VIII) AT LEAST EIGHTY PERCENT BUT LESS THAN NINETY PERCENT, (IX) AT LEAST NINETY PERCENT BUT LESS THAN ONE HUNDRED PERCENT, OR (X) ONE HUNDRED PERCENT. (D) ON OR BEFORE THE THIRTIETH DAY AFTER THE LAST DATE FOR THE FILING OF REQUESTS FOR RELIEF PURSUANT TO THIS SECTION, THE ASSESSOR SHALL MAIL WRITTEN NOTICE OF SUCH FINDINGS TO THE PROPERTY OWNER AND PARTICIPATING MUNICIPALITY. THE NOTICE SHALL INDICATE THAT IF THE PROPERTY OWNER IS S. 1509--A 18 A. 2009--A DISSATISFIED WITH THESE FINDINGS, HE OR SHE MAY FILE A COMPLAINT WITH THE BOARD OF ASSESSMENT REVIEW UP UNTIL THE DATE SPECIFIED IN SUCH NOTICE, WHICH DATE SHALL BE THE TWENTY-FIRST DAY AFTER THE LAST DATE FOR THE MAILING OF SUCH NOTICES. IF ANY COMPLAINTS ARE SO FILED, SUCH BOARD SHALL RECONVENE UPON TEN DAYS WRITTEN NOTICE TO THE PROPERTY OWNER AND ASSESSOR TO HEAR AND DETERMINE THE COMPLAINT, AND SHALL MAIL WRITTEN NOTICE OF ITS DETERMINATION TO THE ASSESSOR AND PROPERTY OWNER WITHIN FIFTEEN DAYS OF SUCH HEARING. THE PROVISIONS OF ARTICLE FIVE OF THIS CHAPTER SHALL GOVERN THE REVIEW PROCESS TO THE EXTENT PRACTICABLE. FOR THE PURPOSES OF THIS SECTION ONLY, THE APPLICANT MAY COMMENCE, WITHIN THIRTY DAYS OF MAILING OF A WRITTEN DETERMINATION, A PROCEEDING UNDER TITLE ONE OF ARTICLE SEVEN OF THIS CHAPTER OR, IF APPLICABLE, UNDER TITLE ONE-A OF ARTICLE SEVEN OF THIS CHAPTER. SECTIONS SEVEN HUNDRED TWENTY-SEVEN AND SEVEN HUNDRED THIRTY-NINE OF THIS CHAPTER SHALL NOT APPLY. (E) WHERE PROPERTY HAS LOST AT LEAST FIFTY PERCENT OF ITS IMPROVED VALUE OR, IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESS- MENT RELIEF FOR REAL PROPERTY THAT LOST A LESSER PERCENTAGE OF IMPROVED VALUE SUCH LESSER PERCENTAGE, DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS ON THE PROPERTY ON THE IMPACTED ASSESS- MENT ROLL SHALL BE REDUCED BY THE APPROPRIATE PERCENTAGE SPECIFIED IN PARAGRAPH (A) OF THIS SUBDIVISION, PROVIDED THAT ANY EXEMPTIONS THAT THE PROPERTY MAY BE RECEIVING SHALL BE ADJUSTED AS NECESSARY TO ACCOUNT FOR SUCH REDUCTION IN THE TOTAL ASSESSED VALUE. TO THE EXTENT THE TOTAL ASSESSED VALUE OF THE PROPERTY ORIGINALLY APPEARING ON SUCH ROLL EXCEEDS THE AMOUNT TO WHICH IT SHOULD BE REDUCED PURSUANT TO THIS SECTION, THE EXCESS SHALL BE CONSIDERED AN ERROR IN ESSENTIAL FACT AS DEFINED BY SUBDIVISION THREE OF SECTION FIVE HUNDRED FIFTY OF THIS CHAPTER. THE ASSESSOR SHALL THEREUPON BE AUTHORIZED AND DIRECTED TO CORRECT THE ASSESSMENT ROLL ACCORDINGLY OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT SUCH PERSON TO MAKE THE APPROPRIATE CORRECTIONS. IF THE CORRECTION IS MADE AFTER TAXES ARE LEVIED BUT BEFORE SUCH TAXES ARE PAID, THE COLLECTING OFFICER SHALL BE AUTHORIZED AND DIRECTED TO CORRECT THE APPLICANT'S TAX BILL ACCORDINGLY. IF THE CORRECTION IS MADE AFTER TAXES ARE PAID, THE AUTHORITIES OF EACH PARTIC- IPATING MUNICIPAL CORPORATION SHALL BE AUTHORIZED AND DIRECTED TO ISSUE A REFUND IN THE AMOUNT OF THE EXCESS TAXES PAID WITH REGARD TO SUCH PARTICIPATING MUNICIPAL CORPORATION. (F) THE RIGHTS CONTAINED IN THIS SECTION SHALL NOT OTHERWISE DIMINISH ANY OTHER LEGALLY AVAILABLE RIGHT OF ANY PROPERTY OWNER OR PARTY WHO MAY OTHERWISE LAWFULLY CHALLENGE THE VALUATION OR ASSESSMENT OF ANY REAL PROPERTY OR IMPROVEMENTS THEREON. ALL REMAINING RIGHTS HEREBY REMAIN AND SHALL BE AVAILABLE TO THE PARTY TO WHOM SUCH RIGHTS WOULD OTHERWISE BE AVAILABLE NOTWITHSTANDING THIS SECTION. 4. SCHOOL DISTRICTS HELD HARMLESS. EACH SCHOOL DISTRICT THAT IS WHOLLY OR PARTIALLY CONTAINED WITHIN AN ELIGIBLE COUNTY SHALL BE HELD HARMLESS BY THE STATE FOR ANY REDUCTION IN STATE AID THAT WOULD HAVE BEEN PAID AS TAX SAVINGS PURSUANT TO SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER INCURRED DUE TO THE PROVISIONS OF THIS SECTION. 5. BONDS AUTHORIZED. SERIAL BONDS AND, IN ADVANCE OF SUCH, BOND ANTIC- IPATION NOTES ARE HEREBY AUTHORIZED PURSUANT TO SUBDIVISION THIRTY- THREE-E OF PARAGRAPH A OF SECTION 11.00 OF THE LOCAL FINANCE LAW, PROVIDED, HOWEVER, THAT ANY FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING RECEIVED BY SUCH PARTICIPATING MUNICIPALITY, IN RELATION TO LOSS OF PROPERTY TAX FUNDING, SHALL FIRST BE USED TO DEFEASE, UPON MATURITY, THE INTEREST AND PRINCIPAL OF ANY SUCH BOND OR NOTE SO OUTSTANDING. S. 1509--A 19 A. 2009--A § 2. Paragraph a of section 11.00 of the local finance law is amended by adding a new subdivision 33-e to read as follows: 33-E. REAL PROPERTY TAX REFUNDS AND CREDITS. PAYMENTS OF EXEMPTIONS, REFUNDS, OR CREDITS FOR REAL PROPERTY TAX, SEWER AND WATER RENTS, RATES AND CHARGES AND ALL OTHER REAL PROPERTY TAXES TO BE MADE BY A MUNICI- PALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION AS A RESULT OF PROVIDING ASSESSMENT RELIEF IN A STATE DISASTER EMERGENCY PURSUANT TO SECTION FOUR HUNDRED NINETY-SEVEN OF THE REAL PROPERTY TAX LAW, TEN YEARS. § 3. This act shall take effect immediately. SUBPART B Section 1. Paragraph (b) of subdivision 1 of section 523 of the real property tax law, as amended by chapter 223 of the laws of 1987, is amended to read as follows: (b) The board of assessment review shall consist of not less than three nor more than five members appointed by the legislative body of the local government or village OR AS PROVIDED BY SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF APPLICABLE. Members shall have a knowledge of property values in the local govern- ment or village. Neither the assessor nor any member of his or her staff may be appointed to the board of assessment review. A majority of such board shall consist of members who are not officers or employees of the local government or village. § 2. Subdivision 1 of section 1537 of the real property tax law, as added by chapter 512 of the laws of 1993, is amended and a new subdivi- sion 5 is added to read as follows: 1. (a) An assessing unit and a county shall have the power to enter into, amend, cancel and terminate an agreement for appraisal services, exemption services, [or] assessment services, OR ASSESSMENT REVIEW SERVICES, in the manner provided by this section. Such an agreement shall be considered an agreement for the provision of a "joint service" for purposes of article five-G of the general municipal law, notwith- standing the fact that the county would not have the power to perform such services in the absence of such an agreement. (b) Any such agreement shall be approved by both the assessing unit and the county, by a majority vote of the voting strength of each governing body. (c) In the case of an assessing unit, no such agreement shall be submitted to the governing body for approval unless at least forty-five days prior to such submission, the governing body shall have adopted a resolution, subject to a permissive referendum, authorizing the assess- ing unit to negotiate such an agreement with the county; provided, however, that such prior authorization shall not be required for an agreement to amend, cancel or terminate an existing agreement pursuant to this section. 5. AN AGREEMENT BETWEEN AN ASSESSING UNIT AND A COUNTY FOR ASSESSMENT REVIEW SERVICES SHALL PROVIDE FOR THE MEMBERS OF THE BOARD OF ASSESSMENT REVIEW OF THE ASSESSING UNIT TO BE APPOINTED BY THE LEGISLATIVE BODY OF THE COUNTY UPON THE RECOMMENDATION OF THE COUNTY DIRECTOR OF THE REAL PROPERTY TAX SERVICES. EACH MEMBER SO APPOINTED SHALL BE A RESIDENT OF THE COUNTY BUT NEED NOT BE A RESIDENT OF THE ASSESSING UNIT. THE BOARD OF ASSESSMENT REVIEW AS SO CONSTITUTED SHALL HAVE THE AUTHORITY TO RECEIVE, REVIEW AND RESOLVE PETITIONS FOR ASSESSMENT REVIEW FILED IN SUCH ASSESSING UNIT, AND FOR THE CORRECTIONS OF ERRORS THEREIN, TO THE FULL EXTENT SET FORTH IN ARTICLE FIVE OF THIS CHAPTER. S. 1509--A 20 A. 2009--A § 3. Subdivision 1 of section 1408 of the real property tax law, as amended by chapter 473 of the laws of 1984, is amended to read as follows: 1. At the time and place and during the hours specified in the notice given pursuant to section fourteen hundred six of this chapter, the board of review shall meet to hear complaints relating to assessments brought before it. The board of trustees and assessors, or a committee of such board constituting at least a majority thereof and the assessors or a board of assessment review constituted pursuant to section five hundred twenty-three of this chapter, OR AS PROVIDED BY SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF APPLICABLE, shall constitute the board of review. § 4. This act shall take effect immediately. SUBPART C Section 1. Subdivision 4 of section 318 of the real property tax law, as amended by chapter 527 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: 4. Notwithstanding the provisions of this subdivision or any other law, the travel and other actual and necessary expenses incurred by an appointed or elected assessor, or by A PERSON APPOINTED ASSESSOR FOR A FORTHCOMING TERM, OR BY an assessor-elect prior to the commencement of his OR HER term, in satisfactorily completing courses of training as required by this title or as approved by the commissioner, including continuing education courses prescribed by the commissioner which are satisfactorily completed by any elected assessor, shall be a state charge upon audit by the comptroller. Travel and other actual and neces- sary expenses incurred by an acting assessor who has been exercising the powers and duties of the assessor for a period of at least six months, in attending training courses no earlier than twelve months prior to the date when courses of training and education are required, shall also be a state charge upon audit by the comptroller. Candidates for certif- ication as eligible for the position of assessor, other than assessors or assessors-elect, shall be charged for the cost of training materials and shall be responsible for all other costs incurred by them in connection with such training. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBDIVISION, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS- SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE. § 2. Paragraph f of subdivision 3 of section 1530 of the real property tax law, as amended by chapter 361 of the laws of 1986 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: f. Expenses in attending training courses. Notwithstanding the provisions of any other law, the travel and other actual and necessary expenses incurred by a director or a person appointed director for a forthcoming term in attending courses of training as required by this subdivision or as approved by the commissioner shall be a state charge upon audit by the comptroller. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS PARAGRAPH, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES S. 1509--A 21 A. 2009--A WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS- SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE. § 3. This act shall take effect immediately. SUBPART D Section 1. Section 104 of the real property tax law, as added by section 1 of part U of chapter 61 of the laws of 2011, is amended to read as follows: § 104. Electronic real property tax administration. 1. Notwithstanding any provision of law to the contrary, the commissioner is hereby author- ized to establish standards for electronic real property tax adminis- tration (E-RPT). Such standards shall set forth the terms and conditions under which the various tasks associated with real property tax adminis- tration may be executed electronically, dispensing with the need for paper documents. Such tasks shall include ANY OR ALL OF THE FOLLOWING: (a) The filing of exemption applications; (b) The filing of petitions for administrative review of assessments; (c) The filing of petitions for judicial review of assessments; (d) The filing of applications for administrative corrections of errors; (e) The issuance of statements of taxes; (f) The payment of taxes, subject to the provisions of sections five and five-b of the general municipal law; (g) The provision of receipts for the payment of taxes; (h) The issuance of taxpayer notices required by law, including sections five hundred eight, five hundred ten, five hundred ten-a, five hundred eleven, five hundred twenty-five and five hundred fifty-one-a through five hundred fifty-six-b of this chapter; and (i) The furnishing of notices and certificates under this chapter relating to state equalization rates, residential assessment ratios, special franchise assessments, railroad ceilings, taxable state lands, advisory appraisals, and the certification of assessors and county directors or real property tax services, SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION. 2. Such standards shall be developed after consultation with local government officials, the office of court administration IN THE CASE OF STANDARDS RELATING TO PETITIONS FOR JUDICIAL REVIEW OF ASSESSMENTS, and the office of the state comptroller IN THE CASE OF STANDARDS RELATING TO PAYMENTS OR TAXES AND THE ISSUANCE OF RECEIPTS THEREFOR. 3. (a) Taxpayers shall not be required to accept notices, statements of taxes, receipts for the payment of taxes, or other documents elec- tronically unless they have so elected. Taxpayers who have not so elected shall be sent such communications in the manner otherwise provided by law. (b) [Assessors and other municipal officials shall not be required to accept and respond to communications from the commissioner electron- ically. (c)] The governing board of any municipal corporation may, by local law, ordinance or resolution, determine that it is in the public inter- est for such municipal corporation to provide electronic real property tax administration. Upon adoption of such local law, ordinance or resol- ution, such municipal corporation shall comply with standards set forth by the commissioner. S. 1509--A 22 A. 2009--A [(d)] (C) The standards prescribed by the commissioner pursuant to this section RELATING TO COMMUNICATIONS WITH TAXPAYERS shall provide for the collection of electronic contact information, such as e-mail addresses and/or social network usernames, from taxpayers who have elected to receive electronic communications in accordance with the provisions of this section. Such information shall be exempt from public disclosure in accordance with section eighty-nine of the public officers law. 4. When a document has been transmitted electronically in accordance with the provisions of this section and the standards adopted by the commissioner hereunder, it shall be deemed to satisfy the applicable legal requirements to the same extent as if it had been mailed via the United States postal service. 5. (A) ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY, WHENEVER THE COMMISSIONER IS OBLIGED BY LAW TO MAIL A NOTICE OF THE DETERMINATION OF A TENTATIVE STATE EQUALIZATION RATE, TENTATIVE SPECIAL FRANCHISE ASSESS- MENT, TENTATIVE ASSESSMENT CEILING OR OTHER TENTATIVE DETERMINATION OF THE COMMISSIONER THAT IS SUBJECT TO ADMINISTRATIVE REVIEW, THE COMMIS- SIONER SHALL BE AUTHORIZED TO FURNISH THE REQUIRED NOTICE BY E-MAIL, OR BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, OR BOTH, AT HIS OR HER DISCRETION. WHEN PROVIDING NOTICE OF A TENTATIVE DETERMINATION BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, THE COMMISSIONER ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO INFORM THEM THAT THE NOTICE OF TENTATIVE DETERMINATION HAS BEEN POSTED ON THE WEBSITE. SUCH NOTICE OF TENTATIVE DETERMINATION SHALL NOT BE DEEMED COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER SHALL NOT BE REQUIRED TO FURNISH SUCH NOTICES BY POSTAL MAIL, EXCEPT AS PROVIDED BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION. (B) WHEN PROVIDING NOTICE OF A TENTATIVE DETERMINATION BY E-MAIL OR POSTING PURSUANT TO THIS SUBDIVISION, THE COMMISSIONER SHALL SPECIFY AN E-MAIL ADDRESS TO WHICH COMPLAINTS REGARDING SUCH TENTATIVE DETERMI- NATION MAY BE SENT. A COMPLAINT THAT IS SENT TO THE COMMISSIONER BY E-MAIL TO THE SPECIFIED E-MAIL ADDRESS BY THE DATE PRESCRIBED BY LAW FOR THE MAILING OF SUCH COMPLAINTS SHALL BE DEEMED VALID TO THE SAME EXTENT AS IF IT HAD BEEN SENT BY POSTAL MAIL. (C) WHEN A FINAL DETERMINATION IS MADE IN SUCH A MATTER, NOTICE OF THE FINAL DETERMINATION AND ANY CERTIFICATE RELATING THERETO SHALL BE FURNISHED BY E-MAIL OR BY A WEBSITE POSTING, OR BOTH AT THE COMMISSION- ER'S DISCRETION, AND NEED NOT BE PROVIDED BY POSTAL MAIL, EXCEPT AS PROVIDED BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION. WHEN PROVIDING NOTICE OF A FINAL DETERMINATION BY WEBSITE POSTING, THE COMMISSIONER ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO INFORM THEM THAT THE NOTICE OF FINAL DETERMINATION HAS BEEN POSTED ON THE WEBSITE. SUCH NOTICE OF FINAL DETERMINATION SHALL NOT BE DEEMED COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT. (D) IF AN ASSESSOR HAS ADVISED THE COMMISSIONER IN WRITING THAT HE OR SHE PREFERS TO RECEIVE THE NOTICES DESCRIBED IN THIS SUBDIVISION BY POSTAL MAIL, THE COMMISSIONER SHALL THEREAFTER SEND SUCH NOTICES TO THAT ASSESSOR BY POSTAL MAIL, AND NEED NOT SEND SUCH NOTICES TO THAT ASSESSOR BY E-MAIL. THE COMMISSIONER SHALL PRESCRIBE A FORM THAT ASSESSORS MAY USE TO ADVISE THE COMMISSIONER OF THEIR PREFERENCE FOR POSTAL MAIL. (E) IF THE COMMISSIONER LEARNS THAT AN E-MAIL ADDRESS TO WHICH A NOTICE HAS BEEN SENT PURSUANT TO THIS SUBDIVISION IS NOT VALID, AND THE COMMISSIONER CANNOT FIND A VALID E-MAIL ADDRESS FOR THAT PARTY, THE COMMISSIONER SHALL RESEND THE NOTICE TO THE PARTY BY POSTAL MAIL. IF THE S. 1509--A 23 A. 2009--A COMMISSIONER DOES NOT HAVE A VALID E-MAIL ADDRESS FOR THE PARTY AT THE TIME THE NOTICE IS INITIALLY REQUIRED TO BE SENT, THE COMMISSIONER SHALL SEND THE NOTICE TO THAT PARTY BY POSTAL MAIL. (F) ON OR BEFORE NOVEMBER THIRTIETH, TWO THOUSAND NINETEEN, THE COMMISSIONER SHALL SEND A NOTICE BY POSTAL MAIL TO ASSESSORS, TO CHIEF EXECUTIVE OFFICERS OF ASSESSING UNITS, AND TO OWNERS OF SPECIAL FRAN- CHISE PROPERTY AND RAILROAD PROPERTY, INFORMING THEM OF THE PROVISIONS OF THIS SECTION. THE NOTICE TO BE SENT TO ASSESSORS SHALL INCLUDE A COPY OF THE FORM PRESCRIBED PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVI- SION. (G) AS USED IN THIS SUBDIVISION, THE TERM "POSTAL MAIL" SHALL MEAN MAIL THAT IS PHYSICALLY DELIVERED TO THE ADDRESSEE BY THE UNITED STATES POSTAL SERVICE. § 2. This act shall take effect immediately. SUBPART E Section 1. Subdivision 4 of section 302 of the real property tax law, as amended by chapter 348 of the laws of 2007, is amended to read as follows: 4. The taxable status of a special franchise shall be determined on the basis of its value and its ownership as of the first day of [July] JANUARY of the year preceding the year in which the assessment roll on which such property is to be assessed is completed and filed in the office of the city or town clerk, except that taxable status of such properties shall be determined on the basis of ownership as of the first day of [July] JANUARY of the second year preceding the date required by law for the filing of the final assessment roll for purposes of all village assessment rolls. § 2. Subdivision 2 of section 606 of the real property tax law, as amended by chapter 743 of the laws of 2005 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: 2. In any assessing unit which has completed a revaluation since nine- teen hundred fifty-three or which does not contain property that was assessed in nineteen hundred fifty-three, the commissioner shall deter- mine the full value of such special franchise as of the [valuation date of the assessing unit] TAXABLE STATUS DATE SPECIFIED BY SUBDIVISION FOUR OF SECTION THREE HUNDRED TWO OF THIS CHAPTER. Such full value shall be determined by the commissioner for purposes of sections six hundred eight, six hundred fourteen and six hundred sixteen of this article. These full values shall be entered on the assessment roll at the level of assessment, which shall be the uniform percentage of value, as required by section five hundred two of this chapter, appearing on the tentative assessment roll upon which the assessment is entered. Whenever a final state equalization rate, or, in the case of a special assessing unit, a class equalization rate, is established that is different from a level of assessment applied pursuant to this paragraph, any public offi- cial having custody of that assessment roll is hereby authorized and directed to recompute these assessments to reflect that equalization rate, provided such final rate is established by the commissioner at least ten days prior to the date for levy of taxes against those assess- ments. § 3. This act shall take effect January 1, 2020. SUBPART F S. 1509--A 24 A. 2009--A Section 1. The real property tax law is amended by adding a new section 575-a to read as follows: § 575-A. ELECTRIC GENERATING FACILITY ANNUAL REPORTS. 1. EVERY CORPO- RATION, COMPANY, ASSOCIATION, JOINT STOCK ASSOCIATION, PARTNERSHIP AND PERSON, THEIR LESSEES, TRUSTEES OR RECEIVERS APPOINTED BY ANY COURT WHATSOEVER, OWNING, OPERATING OR MANAGING ANY ELECTRIC GENERATING FACIL- ITY IN THE STATE SHALL ANNUALLY FILE WITH THE COMMISSIONER, BY APRIL THIRTIETH, A REPORT SHOWING THE INVENTORY, REVENUE, AND EXPENSES ASSOCI- ATED THEREWITH FOR THE MOST RECENT FISCAL YEAR. SUCH REPORT SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER. 2. WHEN USED IN THIS SECTION, "ELECTRIC GENERATING FACILITY" SHALL MEAN ANY FACILITY THAT GENERATES ELECTRICITY FOR SALE, DIRECTLY OR INDI- RECTLY, TO THE PUBLIC, INCLUDING THE LAND UPON WHICH THE FACILITY IS LOCATED, ANY EQUIPMENT USED IN SUCH GENERATION, AND EQUIPMENT LEADING FROM THE FACILITY TO THE INTERCONNECTION WITH THE ELECTRIC TRANSMISSION SYSTEM, BUT SHALL NOT INCLUDE: (A) ANY EQUIPMENT IN THE ELECTRIC TRANSMISSION SYSTEM; AND (B) ANY ELECTRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A RESIDEN- TIAL CUSTOMER OF AN ELECTRIC GENERATING FACILITY, INCLUDING THE LAND UPON WHICH THE EQUIPMENT IS LOCATED, WHEN LOCATED AND USED AT HIS OR HER RESIDENCE. 3. EVERY ELECTRIC GENERATING FACILITY OWNER, OPERATOR, OR MANAGER FAILING TO MAKE THE REPORT REQUIRED BY THIS SECTION, OR FAILING TO MAKE ANY REPORT REQUIRED BY THE COMMISSIONER PURSUANT TO THIS SECTION WITHIN THE TIME SPECIFIED BY IT, SHALL FORFEIT TO THE PEOPLE OF THE STATE THE SUM OF TEN THOUSAND DOLLARS FOR EVERY SUCH FAILURE AND THE ADDITIONAL SUM OF ONE THOUSAND DOLLARS FOR EACH DAY THAT SUCH FAILURE CONTINUES. § 2. This act shall take effect January 1, 2020. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through F of this Part shall be as specifically set forth in the last section of such Subparts. PART K Section 1. Section 3-d of the general municipal law, as added by section 2 of part E of chapter 59 of the laws of 2018, is REPEALED. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 12, 2018. PART L Section 1. The tax law is amended by adding a new section 44 to read as follows: § 44. EMPLOYER-PROVIDED CHILD CARE CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN AMOUNT EQUAL TO THE PORTION OF THE CREDIT THAT IS ALLOWED TO THE TAXPAYER UNDER SECTION S. 1509--A 25 A. 2009--A 45F OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE TO (I) QUALIFIED CHILD CARE EXPENDITURES PAID OR INCURRED WITH RESPECT TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN THE STATE, AND TO (II) QUALIFIED CHILD CARE RESOURCE AND REFERRAL EXPENDITURES PAID OR INCURRED WITH RESPECT TO THE TAXPAYER'S EMPLOYEES WORKING IN THE STATE. THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS. IF THE ENTITY OPERATING THE QUALI- FIED CHILD CARE FACILITY IS A PARTNERSHIP OR A NEW YORK S CORPORATION, THEN SUCH CAP SHALL BE APPLIED AT THE ENTITY LEVEL, SO THE AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF SUCH ENTITY IN A TAXABLE YEAR DOES NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS. (B) CREDIT RECAPTURE. IF THERE IS A CESSATION OF OPERATION OR CHANGE IN OWNERSHIP, AS DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE RELATING TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN THE STATE, THE TAXPAYER SHALL ADD BACK THE APPLICABLE RECAPTURE PERCENTAGE OF THE CREDIT ALLOWED UNDER THIS SECTION IN ACCORDANCE WITH THE RECAPTURE PROVISIONS OF SECTION 45F OF THE INTERNAL REVENUE CODE, BUT THE RECAP- TURE AMOUNT SHALL BE LIMITED TO THE CREDIT ALLOWED UNDER THIS SECTION. (C) REPORTING REQUIREMENTS. A TAXPAYER THAT HAS CLAIMED A CREDIT UNDER THIS SECTION SHALL NOTIFY THE COMMISSIONER OF ANY CESSATION OF OPERA- TION, CHANGE IN OWNERSHIP, OR AGREEMENT TO ASSUME RECAPTURE LIABILITY AS SUCH TERMS ARE DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE, IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER. (D) DEFINITIONS. THE TERMS "QUALIFIED CHILD CARE EXPENDITURES", "QUAL- IFIED CHILD CARE FACILITY", "QUALIFIED CHILD CARE RESOURCE AND REFERRAL EXPENDITURE", "CESSATION OF OPERATION", "CHANGE OF OWNERSHIP", AND "APPLICABLE RECAPTURE PERCENTAGE" SHALL HAVE THE SAME MEANINGS AS IN SECTION 45F OF THE INTERNAL REVENUE CODE. (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53; (2) ARTICLE 22: SECTION 606(I), SUBSECTIONS (I) AND (JJJ); (3) ARTICLE 33: SECTION 1511, SUBDIVISION (DD). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: 53. EMPLOYER-PROVIDED CHILD CARE 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 MAY 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 WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED 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. (C) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER. § 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: S. 1509--A 26 A. 2009--A (XLIV) EMPLOYER-PROVIDED CHILD AMOUNT OF CREDIT UNDER SUBDIVISION CARE CREDIT (JJJ) FIFTY-THREE 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) EMPLOYER-PROVIDED CHILD CARE 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 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 WILL BE PAID THEREON. (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER. § 5. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) EMPLOYER-PROVIDED CHILD CARE 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. THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OR SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAXPAYER'S TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER § 6. This act shall take effect immediately and apply to years begin- ning on or after January 1, 2020. PART M Section 1. Paragraph 1 of subsection (b) of section 631 of the tax law is amended by adding a new subparagraph (D-1) to read as follows: (D-1) GAMBLING WINNINGS IN EXCESS OF FIVE THOUSAND DOLLARS FROM WAGER- ING TRANSACTIONS WITHIN THE STATE; OR § 2. Paragraph 2 of subsection (b) of section 671 of the tax law is amended by adding a new subparagraph (E) to read as follows: (E) ANY GAMBLING WINNINGS FROM A WAGERING TRANSACTION WITHIN THIS STATE, IF THE PROCEEDS FROM THE WAGER ARE SUBJECT TO WITHHOLDING UNDER SECTION THREE THOUSAND FOUR HUNDRED TWO OF THE INTERNAL REVENUE CODE. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019; provided, however that the amendments to subsection (b) of section 671 of the tax law made by section two of this act shall not affect the expiration of such subsection and shall be deemed to expire therewith. S. 1509--A 27 A. 2009--A PART N Section 1. Subdivision (c) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: (c) For purposes of this [subdivision] SECTION, the term "eligible farmer" means a taxpayer whose federal gross income from farming AS DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER for the taxable year is at least two-thirds of excess federal gross income. Excess federal gross income means the amount of federal gross income from all sources for the taxable year in excess of thirty thousand dollars. For [the] purposes of this [subdivision] SECTION, payments from the state's farmland protection program, administered by the department of agriculture and markets, shall be included as federal gross income from farming for otherwise eligible farmers. § 2. Section 42 of the tax law is amended by adding a new subdivision (d-1) to read as follows: (D-1) SPECIAL RULES. IF MORE THAN FIFTY PERCENT OF SUCH ELIGIBLE FARM- ER'S FEDERAL GROSS INCOME FROM FARMING IS FROM THE SALE OF WINE FROM A LICENSED FARM WINERY AS PROVIDED FOR IN ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW, OR FROM THE SALE OF CIDER FROM A LICENSED FARM CIDERY AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVER- AGE CONTROL LAW, THEN AN ELIGIBLE FARM EMPLOYEE OF SUCH ELIGIBLE FARMER SHALL BE INCLUDED FOR PURPOSES OF CALCULATING THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION ONLY IF SUCH ELIGIBLE FARM EMPLOYEE IS EMPLOYED BY SUCH ELIGIBLE FARMER ON QUALIFIED AGRICULTURAL PROPERTY AS DEFINED IN PARAGRAPH FOUR OF SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019. PART O Section 1. Section 12 of part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related infor- mation and relating to the voluntary compliance initiative, as amended by section 1 of part M of chapter 60 of the laws of 2016, is amended to read as follows: § 12. This act shall take effect immediately; provided, however, that (i) section one of this act shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service at any time with respect to "listed transactions" as described in such paragraph 1, and shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service with respect to "reportable transactions" as described in such paragraph 1, other than "listed transactions", in which a taxpayer participated during any taxable year for which the statute of limitations for assessment has not expired as of the date this act shall take effect, and shall apply to returns or statements described in such paragraph 1 required to be filed by taxpayers (or persons as described in such paragraph) with the commissioner of taxation and finance on or after the sixtieth day after this act shall have become a law; and S. 1509--A 28 A. 2009--A (ii) sections two through four and seven through nine of this act shall apply to any tax liability for which the statute of limitations on assessment has not expired as of the date this act shall take effect[; and (iii) provided, further, that the provisions of this act, except section five of this act, shall expire and be deemed repealed July 1, 2019; provided, that, such expiration and repeal shall not affect any requirement imposed pursuant to this act]. § 2. Subsection (aa) of section 685 of the tax law is REPEALED and a new subsection (aa) is added to read as follows: (AA) TAX PREPARER PENALTY.-- (1) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN OR CREDIT CLAIM FORM THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND, AND THE PREPARER KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT SAID POSITION WAS NOT PROPER, AND SUCH POSITION WAS NOT ADEQUATELY DISCLOSED ON THE RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPAR- ER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS. (2) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN OR CREDIT CLAIM FORM THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND AND THE UNDERSTATEMENT OF THE TAX LIABILITY OR THE INCREASED CLAIM FOR REFUND IS DUE TO THE PREPARER'S RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH PREPARER SHALL PAY A PENALTY OF BETWEEN FIVE HUNDRED AND FIVE THOUSAND DOLLARS. THE AMOUNT OF THE PENALTY PAYABLE BY ANY PERSON BY REASON OF THIS PARAGRAPH SHALL BE REDUCED BY THE AMOUNT OF THE PENALTY PAID BY SUCH PERSON BY REASON OF PARAGRAPH ONE OF THIS SUBSECTION. (3) FOR PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT OF TAX LIABILITY" MEANS ANY UNDERSTATEMENT OF THE NET AMOUNT PAYABLE WITH RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR ANY OVERSTATEMENT OF THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX. (4) FOR PURPOSES OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARED" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE. (5) THIS SUBSECTION SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION (R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH UNDERSTATEMENT. § 3. Subsection (u) of section 685 of the tax law is amended by adding three new paragraphs (1), (2), and (6) to read as follows: (1) FAILURE TO SIGN RETURN OR CLAIM FOR REFUND. IF A TAX RETURN PREPARER WHO IS REQUIRED PURSUANT TO PARAGRAPH ONE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE TO SIGN A RETURN OR CLAIM FOR REFUND FAILS TO COMPLY WITH SUCH REQUIREMENT WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, THE TAX RETURN PREPARER SHALL BE SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH FAILURE TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR BY THE TAX RETURN PREPARER MUST NOT EXCEED TEN THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO SIGN HIS OR HER NAME ON ANY RETURN THAT REQUIRES THE TAX RETURN PREPARER'S SIGNATURE DURING A SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE FIVE HUNDRED DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF THE PENALTY UNDER PARAGRAPH THREE OF SUBSECTION (G) OF SECTION THIRTY- S. 1509--A 29 A. 2009--A TWO OF THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND. (2) FAILURE TO FURNISH IDENTIFYING NUMBER. IF A TAX RETURN PREPARER FAILS TO INCLUDE ANY IDENTIFYING NUMBER REQUIRED TO BE INCLUDED ON ANY RETURN OR CLAIM FOR REFUND PURSUANT TO PARAGRAPH TWO OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE, THE TAX RETURN PREPARER SHALL BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS FOR EACH SUCH FAILURE, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR MUST NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS; PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO INCLUDE THE IDENTIFYING NUMBER ON ONE OR MORE RETURNS DURING A SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE TWO HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF THE PENALTY UNDER PARAGRAPH FOUR OF SUBSECTION (G) OF SECTION THIRTY-TWO OF THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND. (6) FOR PURPOSES OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARER" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE. § 4. This act shall take effect immediately; provided, however, that the amendments to subsection (u) of section 685 of the tax law made by section three of this act shall apply to tax documents filed or required to be filed for taxable years beginning on or after January 1, 2019. PART P Section 1. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, as added by section 1 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over $43,000 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over $161,550 Over $323,200 BUT NOT OVER $19,674 plus 6.85% of excess $2,155,350 $323,200 over OVER $2,155,350 $145,177 PLUS 8.82% OF EXCESS OVER $2,155,350 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over S. 1509--A 30 A. 2009--A $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over $43,000 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over $161,550 Over $323,200 BUT NOT OVER $19,403 plus 6.85% of excess $2,155,350 over $323,200 OVER $2,155,350 $144,905 PLUS 8.82% OF EXCESS OVER $2,155,350 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over $27,900 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over $161,550 Over $323,200 BUT NOT OVER $2,155,350 $19,124 plus 6.85% of excess over $323,200 OVER $2,155,350 $144,626 PLUS 8.82% OF EXCESS OVER $2,155,350 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 BUT NOT OVER $18,834 plus 6.85% of $2,155,350 excess over $323,200 OVER $2,155,350 $144,336 PLUS 8.82% OF EXCESS OVER $2,155,350 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over S. 1509--A 31 A. 2009--A $161,550 Over $323,200 BUT NOT OVER $18,544 plus 6.85% of $2,155,350 excess over $323,200 OVER $2,155,350 $144,047 PLUS 8.82% OF EXCESS OVER $2,155,350 § 2. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, as added by section 2 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over $32,200 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over $107,650 Over $269,300 BUT NOT OVER $16,524 plus 6.85% of $1,616,450 excess over $269,300 OVER $1,616,450 $108,804 PLUS 8.82% OF EXCESS OVER $1,616,450 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over $32,200 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over $107,650 Over $269,300 BUT NOT OVER $16,304 plus 6.85% of $1,616,450 excess over $269,300 OVER $1,616,450 $108,584 PLUS 8.82% OF EXCESS OVER $1,616,450 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over $20,900 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over $107,650 Over $269,300 BUT NOT OVER $16,079 plus 6.85% of excess S. 1509--A 32 A. 2009--A $1,616,450 over $269,300 OVER $1,616,450 $108,359 PLUS 8.82% OF EXCESS OVER $1,616,450 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over $107,650 Over $269,300 BUT NOT OVER $15,845 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 $108,125 PLUS 8.82% OF EXCESS OVER $1,616,450 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 BUT NOT OVER $15,612 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 $107,892 PLUS 8.82% OF EXCESS OVER $1,616,450 § 3. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, as added by section 3 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over $21,400 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over $80,650 Over $215,400 BUT NOT OVER $13,288 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $72,345 PLUS 8.82% OF EXCESS OVER S. 1509--A 33 A. 2009--A $1,077,550 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over $21,400 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over $80,650 Over $215,400 BUT NOT OVER $13,109 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $72,166 PLUS 8.82% OF EXCESS OVER $1,077,550 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over $13,900 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over $80,650 Over $215,400 BUT NOT OVER $12,926 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $71,984 PLUS 8.82% OF EXCESS OVER $1,077,550 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 BUT NOT OVER $12,738 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $71,796 PLUS 8.82% OF EXCESS OVER $1,077,550 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over S. 1509--A 34 A. 2009--A $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 BUT NOT OVER $12,550 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $71,608 PLUS 8.82% OF EXCESS OVER $1,077,550 § 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 601 of the tax law, as amended by section 4 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (D) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over two million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand [twenty] TWENTY-FIVE. § 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 601 of the tax law, as amended by section 5 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (b) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (b) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million five hundred thousand dollars and the denominator is fifty thou- sand dollars. This subparagraph shall apply only to taxable years begin- ning on or after January first, two thousand twelve and before January first, two thousand [twenty] TWENTY-FIVE. § 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 601 of the tax law, as amended by section 6 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (c) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (c) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as S. 1509--A 35 A. 2009--A follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand [twenty] TWENTY-FIVE. § 7. This act shall take effect immediately. PART Q Section 1. Subsection (g) of section 615 of the tax law, as amended by section 1 of part S of chapter 59 of the laws of 2017, is amended to read as follows: (g) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, THE NEW YORK ITEM- IZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS MODI- FIED BY PARAGRAPH NINE OF SUBSECTION (C) OF THIS SECTION AND AS LIMITED BY THIS SUBSECTION. (1) With respect to an individual whose New York adjusted gross income is over one million dollars and no more than ten million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxa- ble years beginning after two thousand nine and before two thousand [twenty] TWENTY-FIVE. With respect to an individual whose New York adjusted gross income is over one million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning in two thousand nine or after two thousand [nineteen] TWENTY-FOUR. (2) With respect to an individual whose New York adjusted gross income is over ten million dollars, the New York itemized deduction shall be an amount equal to twenty-five percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning after two thousand nine and ending before two thousand [twenty] TWENTY-FIVE. § 2. Subdivision (g) of section 11-1715 of the administrative code of the city of New York, as amended by section 2 of part S of chapter 59 of the laws of 2017, is amended to read as follows: (g) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, THE CITY ITEMIZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS LIMITED BY THIS SUBDIVISION. (1) With respect to an individual whose New York adjusted gross income is over one million dollars but no more than ten million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxa- ble years beginning after two thousand nine and before two thousand [twenty] TWENTY-FIVE. With respect to an individual whose New York adjusted gross income is over one million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning in two thousand nine or after two thousand [nineteen] TWENTY-FOUR. (2) With respect to an individual whose New York adjusted gross income is over ten million dollars, the New York itemized deduction shall be an amount equal to twenty-five percent of any charitable contribution S. 1509--A 36 A. 2009--A deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning after two thousand nine and ending before two thousand [twenty] TWENTY-FIVE. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART R Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as amended by chapter 315 of the laws of 2017, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state purchased before January first, two thousand [twenty] TWENTY-THREE. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seven- teen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as amended by chapter 315 of the laws of 2017, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thou- sand seven and on or after January first, two thousand eight and before January first, two thousand [twenty] TWENTY-THREE. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seventeen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 3. This act shall take effect immediately. PART S Section 1. Subdivision (e) of section 23 of the part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing standards for electronic tax administration is REPEALED. § 2. This act shall take effect immediately. PART T Section 1. Subdivision 3 of section 77 of the cooperative corporations law, as amended by chapter 429 of the laws of 1992, is amended to read as follows: 3. Such annual fee shall be paid for each calendar year on the fifteenth day of March next succeeding the close of such calendar year BUT SHALL NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY; PROVIDED, HOWEVER, THAT COOPERATIVE CORPORATIONS DESCRIBED IN SUBDIVI- SIONS ONE OR TWO OF THIS SECTION SHALL CONTINUE TO NOT BE SUBJECT TO THE S. 1509--A 37 A. 2009--A FRANCHISE, LICENSE, AND CORPORATION TAXES REFERENCED IN SUCH SUBDIVI- SIONS OR, IN THE CASE OF COOPERATIVE COOPERATIONS DESCRIBED IN SUBDIVI- SION TWO OF THIS SECTION, THE TAX IMPOSED UNDER SECTION ONE-HUNDRED EIGHTY-SIX-A OF THE TAX LAW. § 2. Section 66 of the rural electric cooperative law, as amended by chapter 888 of the laws of 1983, is amended to read as follows: § 66. License fee in lieu of all franchise, excise, income, corpo- ration and sales and compensating use taxes. Each cooperative and foreign corporation doing business in this state pursuant to this chap- ter shall pay annually, on or before the first day of July, to the state tax commission, a fee of ten dollars, but shall be exempt from all other franchise, excise, income, corporation and sales and compensating use taxes whatsoever. The exemption from the sales and compensating use taxes provided by this section shall not apply to the taxes imposed pursuant to section eleven hundred seven or eleven hundred eight of the tax law. Nothing contained in this section shall be deemed to exempt such corporations from collecting and paying over sales and compensating use taxes on retail sales of tangible personal property and services made by such corporations to purchasers required to pay such taxes imposed pursuant to article twenty-eight or authorized pursuant to the authority of article twenty-nine of the tax law. SUCH ANNUAL FEE SHALL NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY. § 3. This act shall take effect immediately. PART U Section 1. Paragraph (e) of subdivision 26 of section 210-B of the tax law, as amended by section 2 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (e) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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. § 2. Paragraph 5 of subsection (oo) of section 606 of the tax law, as amended by section 1 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (5) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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 S. 1509--A 38 A. 2009--A 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 subsection for an additional two calen- dar years. § 3. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as amended by section 3 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (5) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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. This act shall take effect immediately and apply to taxable years beginning on and after January 1, 2020. PART V Section 1. Subdivision (jj) of section 1115 of the tax law, as added by section 1 of part UU of chapter 59 of the laws of 2015, is amended to read as follows: (jj) Tangible personal property or services otherwise taxable under this article sold to a related person shall not be subject to the taxes imposed by section eleven hundred five of this article or the compensat- ing use tax imposed under section eleven hundred ten of this article where the purchaser can show that the following conditions have been met to the extent they are applicable: (1)(i) the vendor and the purchaser are referenced as either a "covered company" as described in section 243.2(f) or a "material entity" as described in section 243.2(l) of the Code of Federal Regulations in a resolution plan that has been submitted to an agency of the United States for the purpose of satisfying subpara- graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- Frank Wall Street Reform and Consumer Protection Act (the "Act") or any successor law, or (ii) the vendor and the purchaser are separate legal entities pursuant to a divestiture directed pursuant to subparagraph 5 of paragraph (d) of section one hundred sixty-five of such act or any successor law; (2) the sale would not have occurred between such related entities were it not for such resolution plan or divestiture; and (3) in acquiring such property or services, the vendor did not claim an exemption from the tax imposed by this state or another state based on the vendor's intent to resell such services or property. A person is related to another person for purposes of this subdivision if the person bears a relationship to such person described in section two hundred sixty-seven of the internal revenue code. The exemption provided by this subdivision shall not apply to sales made, services rendered, or uses occurring after June thirtieth, two thousand [nineteen] TWENTY-ONE, except with respect to sales made, services rendered, or uses occurring pursuant to binding contracts entered into on or before such date; but S. 1509--A 39 A. 2009--A in no case shall such exemption apply after June thirtieth, two thousand twenty-four. § 2. This act shall take effect immediately. PART W Section 1. The mental hygiene law is amended by adding a new section 32.38 to read as follows: § 32.38 POWER TO ADMINISTER THE RECOVERY TAX CREDIT PROGRAM. (A) AUTHORIZATION. THE COMMISSIONER IS AUTHORIZED TO ESTABLISH AND ADMINISTER THE RECOVERY TAX CREDIT PROGRAM TO PROVIDE TAX INCENTIVES TO CERTIFIED EMPLOYERS FOR EMPLOYING ELIGIBLE INDIVIDUALS IN RECOVERY FROM A SUBSTANCE USE DISORDER IN PART-TIME AND FULL-TIME POSITIONS IN THE STATE. THE COMMISSIONER IS AUTHORIZED TO ALLOCATE UP TO TWO MILLION DOLLARS OF TAX CREDITS ANNUALLY FOR THE RECOVERY TAX CREDIT PROGRAM BEGINNING IN THE YEAR TWO THOUSAND TWENTY. (B) DEFINITIONS. 1. THE TERM "CERTIFIED EMPLOYER" MEANS AN EMPLOYER THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER AFTER THE COMMISSIONER HAS DETERMINED THAT THE EMPLOYER: (I) PROVIDES A RECOVERY SUPPORTIVE ENVIRONMENT EVIDENCED BY A FORMAL WORKING RELATIONSHIP WITH A LOCAL RECOVERY COMMUNITY ORGANIZATION TO PROVIDE SUPPORT FOR EMPLOYERS INCLUDING ANY NECESSARY ASSISTANCE IN THE HIRING PROCESS OF ELIGIBLE INDIVIDUALS IN RECOVERY FROM A SUBSTANCE USE DISORDER AND TRAINING FOR EMPLOYERS OR SUPERVISORS; AND (II) FULFILLS THE ELIGIBILITY CRITERIA SET FORTH IN THIS SECTION AND BY THE COMMISSIONER TO PARTICIPATE IN THE RECOVERY TAX CREDIT PROGRAM ESTABLISHED IN THIS SECTION. 2. THE TERM "ELIGIBLE INDIVIDUAL" MEANS AN INDIVIDUAL WITH A SUBSTANCE USE DISORDER AS THAT TERM IS DEFINED IN SECTION 1.03 OF THIS CHAPTER WHO IS IN A STATE OF WELLNESS WHERE THERE IS AN ABATEMENT OF SIGNS AND SYMP- TOMS THAT CHARACTERIZE ACTIVE ADDICTION AND HAS DEMONSTRATED TO THE QUALIFIED EMPLOYER'S SATISFACTION THAT HE OR SHE HAS COMPLETED A COURSE OF TREATMENT FOR SUCH SUBSTANCE USE DISORDER. (C) APPLICATION AND APPROVAL PROCESS. 1. TO PARTICIPATE IN THE PROGRAM ESTABLISHED BY THIS SECTION, AN EMPLOYER MUST, IN A FORM PRESCRIBED BY THE COMMISSIONER, APPLY ANNUALLY TO THE OFFICE BY JANUARY FIFTEENTH TO CLAIM CREDIT BASED ON ELIGIBLE INDIVIDUALS EMPLOYED DURING THE PRECEDING CALENDAR YEAR. AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (I) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES. HOWEVER, ANY INFORMATION SHARED BECAUSE OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW. (II) ALLOW THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AND ITS AGENTS ACCESS TO ALL BOOKS AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE WITH PROGRAM ELIGIBILITY REQUIREMENTS. (III) DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED PROGRAM ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY, INCLUDING THE NUMBER OF HOURS WORKED BY ANY ELIGIBLE INDIVIDUAL, FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. 2. (I) AFTER REVIEWING THE APPLICATION AND FINDING IT SUFFICIENT, THE COMMISSIONER SHALL ISSUE A CERTIFICATE OF TAX CREDIT BY MARCH THIRTY- FIRST. SUCH CERTIFICATE SHALL INCLUDE, BUT NOT BE LIMITED TO, THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE CERTIFIED EMPLOYER, THE AMOUNT OF CREDIT THAT THE CERTIFIED EMPLOYER MAY CLAIM, AND ANY OTHER INFORMA- TION THE COMMISSIONER OF TAXATION AND FINANCE DETERMINES IS NECESSARY. S. 1509--A 40 A. 2009--A (II) IN DETERMINING THE AMOUNT OF CREDIT THAT ANY EMPLOYER MAY CLAIM, THE COMMISSIONER SHALL REVIEW ALL CLAIMS SUBMITTED FOR CREDIT BY EMPLOY- ERS AND, TO THE EXTENT THAT THE TOTAL AMOUNT CLAIMED BY EMPLOYERS EXCEEDS THE AMOUNT ALLOCATED FOR THE PROGRAM IN THAT CALENDAR YEAR, SHALL ISSUE CREDITS ON A PRO-RATA BASIS CORRESPONDING TO EACH CLAIMANT'S SHARE OF THE TOTAL CLAIMED AMOUNT. (D) ELIGIBILITY. A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CRED- IT EQUAL TO THE PRODUCT OF ONE DOLLAR AND THE NUMBER OF HOURS WORKED BY EACH ELIGIBLE INDIVIDUAL DURING SUCH INDIVIDUAL'S PERIOD OF ELIGIBILITY. THE CREDIT SHALL NOT BE ALLOWED UNLESS THE ELIGIBLE INDIVIDUAL HAS WORKED IN STATE FOR A MINIMUM OF FIVE HUNDRED HOURS FOR THE CERTIFIED EMPLOYER, AND THE CREDIT CANNOT EXCEED TWO THOUSAND DOLLARS PER ELIGIBLE INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYER IN THE STATE. THE PERIOD OF ELIGIBILITY FOR EACH SUCH EMPLOYEE STARTS ON THE DAY THE EMPLOYEE IS HIRED AND ENDS ON DECEMBER THIRTY-FIRST OF THE IMMEDIATELY SUCCEEDING CALENDAR YEAR OR THE LAST DAY OF THE EMPLOYEE'S EMPLOYMENT BY THE CERTI- FIED EMPLOYER, WHICHEVER COMES FIRST. IF AN EMPLOYEE HAS WORKED IN EXCESS OF FIVE HUNDRED HOURS BETWEEN THE DATE OF HIRING AND DECEMBER THIRTY-FIRST OF THAT YEAR, AN EMPLOYER CAN ELECT TO COMPUTE AND CLAIM A CREDIT FOR SUCH EMPLOYEE IN THAT YEAR BASED ON THE HOURS WORKED BY DECEMBER THIRTY-FIRST. ALTERNATIVELY, THE EMPLOYER MAY ELECT TO INCLUDE SUCH INDIVIDUAL IN THE COMPUTATION OF THE CREDIT IN THE YEAR IMMEDIATELY SUCCEEDING THE YEAR IN WHICH THE EMPLOYEE WAS HIRED. IN SUCH CASE, THE CREDIT SHALL BE COMPUTED ON THE BASIS OF ALL HOURS WORKED BY SUCH ELIGI- BLE INDIVIDUAL FROM THE DATE OF HIRE TO THE EARLIER OF THE LAST DAY OF EMPLOYMENT OR DECEMBER THIRTY-FIRST OF THE SUCCEEDING YEAR. HOWEVER, IN NO EVENT MAY AN EMPLOYEE GENERATE CREDIT FOR HOURS WORKED IN EXCESS OF TWO THOUSAND HOURS. AN EMPLOYER MAY CLAIM CREDIT ONLY ONCE WITH RESPECT TO ANY ELIGIBLE INDIVIDUAL AND MAY NOT AGGREGATE HOURS OF TWO OR MORE EMPLOYEES TO REACH THE MINIMUM NUMBER OF HOURS. (E) DUTIES OF THE COMMISSIONER. THE COMMISSIONER SHALL ANNUALLY PROVIDE TO THE COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE INFORMATION ABOUT THE PROGRAM INCLUDING, BUT NOT LIMITED TO, THE NUMBER OF CERTIFIED EMPLOYERS THEN PARTICIPATING IN THE PROGRAM, UNIQUE IDENTI- FYING INFORMATION FOR EACH CERTIFIED EMPLOYER, THE NUMBER OF ELIGIBLE INDIVIDUALS EMPLOYED BY EACH CERTIFIED EMPLOYER, UNIQUE IDENTIFYING INFORMATION FOR EACH ELIGIBLE INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYERS, THE NUMBER OF HOURS WORKED BY SUCH ELIGIBLE INDIVIDUALS, THE TOTAL DOLLAR AMOUNT OF CLAIMS FOR CREDIT, AND THE DOLLAR AMOUNT OF CRED- IT GRANTED TO EACH CERTIFIED EMPLOYER. (F) CERTIFIED EMPLOYER'S TAXABLE YEAR. IF THE CERTIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE CERTIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CRED- IT ON THE RETURN FOR THE FISCAL YEAR THAT INCLUDES THE LAST DAY OF THE CALENDAR YEAR COVERED BY THE CERTIFICATE OF TAX CREDIT. (G) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THE TAX LAW: 1. ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53. 2. ARTICLE 22: SECTION 606, SUBSECTION (JJJ). 3. ARTICLE 33: SECTION 1511, SUBDIVISION (DD). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: S. 1509--A 41 A. 2009--A 53. RECOVERY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A CERTIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP OR MEMBER OF A LIMITED LIABILITY COMPANY THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO THAT AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON. (C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 3. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows: (XLIV) RECOVERY TAX CREDIT UNDER AMOUNT OF CREDIT UNDER SUBSECTION (JJJ) SUBDIVISION FIFTY-THREE 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) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. 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 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABIL- ITY COMPANY OR S CORPORATION. (2) OVERPAYMENT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXA- BLE 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, NO INTEREST WILL BE PAID THEREON. S. 1509--A 42 A. 2009--A (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 5. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP OR MEMBER OF A LIMITED LIABILITY COMPANY THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY. (2) 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 MINIMUM TAX FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE OR BY SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR 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, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 6. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2020 and shall apply to those eligible individuals hired after this act shall take effect. PART X Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 20 to read as follows: (20) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE TERM "CONTRIBUTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE. § 2. Paragraph 1 of subdivision (b) of section 1503 of the tax law is amended by adding a new subparagraph (T) to read as follows: (T) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE TERM "CONTRIB- UTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE. S. 1509--A 43 A. 2009--A § 3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis- trative code of the city of New York is amended by adding a new subpara- graph 14 to read as follows: (14) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE TERM "CONTRIBUTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART Y 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 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. S. 1509--A 44 A. 2009--A (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 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 S. 1509--A 45 A. 2009--A 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, 2019 and before January 1, 2020, (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, 2019; 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 Z Section 1. Paragraph 3 of subdivision (a) and paragraphs 2 and 5 of subdivision (c) of section 43 of the tax law, as added by section 7 of part K of chapter 59 of the laws of 2017, are amended to read as follows: S. 1509--A 46 A. 2009--A (3) The total amount of credit allowable to a qualified life sciences company, or, if the life sciences company is properly included or required to be included in a combined report, to the combined group, taken in the aggregate, shall not exceed five hundred thousand dollars in any taxable year. If the [life sciences company] TAXPAYER is a part- ner in a partnership THAT IS A LIFE SCIENCES COMPANY or A shareholder of a New York S corporation THAT IS A LIFE SCIENCES COMPANY, then the total amount of credit allowable shall be applied at the entity level, so that the total amount of credit allowable to all the partners or shareholders of each such entity, taken in the aggregate, does not exceed five hundred thousand dollars in any taxable year. (2) "New business" means any business that qualifies as a new business under either paragraph (f) of subdivision one of section two hundred ten-B or paragraph ten of subsection [one] (A) of section six hundred six of this chapter. (5) "Related person" means a related person as defined in subparagraph [(c)] (C) of paragraph three of subsection (b) of section 465 of the internal revenue code. For this purpose, a "related person" shall include an entity that would have qualified as a "related person" if it had not been dissolved, liquidated, merged with another entity or other- wise ceased to exist or operate. § 2. Subdivision 5 of section 209 of the tax law, as amended by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 5. For any taxable year of a real estate investment trust as defined in section eight hundred fifty-six of the internal revenue code in which such trust is subject to federal income taxation under section eight hundred fifty-seven of such code, such trust shall be subject to a tax computed under either paragraph (a) or (d) of subdivision one of section two hundred ten of this chapter, whichever is greater, and shall not be subject to any tax under article thirty-three of this chapter except for a captive REIT required to file a combined return under subdivision (f) of section fifteen hundred fifteen of this chapter. In the case of such a real estate investment trust, including a captive REIT as defined in section two of this chapter, the term "entire net income" means "real estate investment trust taxable income" as defined in paragraph two of subdivision (b) of section eight hundred fifty-seven (as modified by section eight hundred fifty-eight) of the internal revenue code [plus the amount taxable under paragraph three of subdivision (b) of section eight hundred fifty-seven of such code], subject to the modifications required by subdivision nine of section two hundred eight of this arti- cle. § 3. Paragraph (a) of subdivision 8 of section 211 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (a) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for any tax commissioner, any officer or employee of the department [of taxation and finance], or any person who, pursuant to this section, is permitted to inspect any report, or to whom any information contained in any 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 report filed pursuant to this article, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report under this article. The officers charged with the custody of such reports shall not be required to S. 1509--A 47 A. 2009--A 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 or 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 or the commissioner is a party or a claimant, or on behalf of any party to any action or proceed- ing under the provisions of this article when the reports or 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 reports or of the facts shown thereby as are pertinent to the action or proceeding, and no more. The commissioner may, nevertheless, publish a copy or a summary of any determination or decision rendered after the formal hearing provided for in section one thousand eighty-nine of this chapter. Nothing herein shall be construed to prohibit the delivery to a corporation or its duly authorized repre- sentative of a copy of any report filed by it, nor to prohibit the publication of statistics so classified as to prevent the identification of particular reports and the items thereof; or the publication of delinquent lists showing the names of taxpayers who have failed to pay their taxes at the time and in the manner provided by section two hundred thirteen of this chapter together with any relevant information which in the opinion of the commissioner may assist in the collection of such delinquent taxes; or the inspection by the attorney general or other legal representatives of the state of the report of any corpo- ration which shall bring action to set aside or review the tax based thereon, or against which an action or proceeding under this chapter has been recommended by the commissioner of taxation and finance or the attorney general or has been instituted; or the inspection of the reports of any corporation 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 tax paid by such corporation under this article[; and nothing in this chapter shall be construed to prohibit the publication of the issuer's allocation percentage of any corporation, as such term "issuer's allocation percentage" is defined in subparagraph one of paragraph (b) of subdivision three of section two hundred ten of this article]. § 4. Subdivision (a) of section 213-b of the tax law, as amended by section 10 of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (a) First installments for certain taxpayers.--In privilege periods of twelve months ending at any time during the calendar year nineteen hundred seventy and thereafter, every taxpayer subject to the tax imposed by section two hundred nine of this chapter must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, for taxable years beginning before January first, two thousand sixteen, and must pay on or before the fifteenth day of the third month of such priv- ilege periods, for taxable years beginning on or after January first, two thousand sixteen, an amount equal to (i) twenty-five percent of the second preceding year's tax if the second preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the second preceding year's tax if the second preceding year's tax exceeded one hundred thousand dollars. If the second preceding year's tax under section two hundred nine of this chapter exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section two hundred nine-B of this chapter, the S. 1509--A 48 A. 2009--A taxpayer must also pay with the tax surcharge report required to be filed for the second preceding privilege period, or with an application for extension of the time for filing the report, for taxable years beginning before January first, two thousand sixteen, and must pay on or before the fifteenth day of the third month of such privilege periods, for taxable years beginning on or after January first, two thousand sixteen, an amount equal to (i) twenty-five percent of the tax surcharge imposed for the second preceding year if the second preceding year's tax was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the second preceding year if the second preceding year's tax exceeded one hundred thousand dollars. Provided, however, that every taxpayer that is [an] A NEW YORK S corpo- ration must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, an amount equal to (i) twenty-five percent of the preceding year's tax if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the preceding year's tax if the preceding year's tax exceeded one hundred thousand dollars. [If the preceding year's tax under section two hundred nine of this article exceeded one thousand dollars and such taxpayer that is an S corporation is subject to the tax surcharge imposed by section two hundred nine-B of this article, the taxpayer must also pay with the tax surcharge report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, an amount equal to (i) twenty-five percent of the tax surcharge imposed for the preceding year if the preceding year's tax was equal equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the preceding year if the preceding year's tax exceeded one hundred thousand dollars.] § 5. Subdivision (e) of section 213-b of the tax law, as amended by chapter 166 of the laws of 1991, the subdivision heading as amended by section 10-b of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (e) Interest on certain installments based on the second preceding year's tax.--Notwithstanding the provisions of section one thousand eighty-eight of this chapter or of section sixteen of the state finance law, if an amount paid pursuant to subdivision (a) exceeds the tax or tax surcharge, respectively, shown on the report required to be filed by the taxpayer for the privilege period during which the amount was paid, interest shall be allowed and paid on the amount by which the amount so paid pursuant to such subdivision exceeds such tax or tax surcharge. In the case of amounts so paid pursuant to subdivision (a), such interest shall be allowed and paid at the overpayment rate set by the commission- er of taxation and finance pursuant to section one thousand ninety-six of this chapter, or if no rate is set, at the rate of six per centum per annum from the date of payment of the amount so paid pursuant to such subdivision to the fifteenth day of the [third] FOURTH month following the close of the taxable year, provided, however, that no interest shall be allowed or paid under this subdivision if the amount thereof is less than one dollar or if such interest becomes payable solely because of a carryback of a net operating loss in a subsequent privilege period. § 6. Subdivision (a) of section 1503 of the tax law, as amended by chapter 817 of the laws of 1987, is amended to read as follows: (a) The entire net income of a taxpayer shall be its total net income from all sources which shall be presumably the same as the life insur- S. 1509--A 49 A. 2009--A ance company taxable income (which shall include, in the case of a stock life insurance company [which] THAT has A BALANCE, AS DETERMINED AS OF THE CLOSE OF SUCH COMPANY'S LAST TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, IN an existing policyholders surplus account, AS SUCH TERM IS DEFINED IN SECTION 815 OF THE INTERNAL REVENUE CODE AS SUCH SECTION WAS IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount of [direct and indirect distributions during the taxable year to shareholders from such account] ONE-EIGHTH OF SUCH BALANCE), taxable income of a partnership or taxable income, but not alternative minimum taxable income, as the case may be, which the taxpayer is required to report to the United States treasury department, for the taxable year or, in the case of a corporation exempt from federal income tax (other than the tax on unrelated business taxa- ble income imposed under section 511 of the internal revenue code) but not exempt from tax under section fifteen hundred one, the taxable income which such taxpayer would have been required to report but for such exemption, except as hereinafter provided. § 7. Paragraphs (a) and (b) of subdivision 4 of section 11-676 of the administrative code of the city of New York are amended to read as follows: (a) The tax shown on the return of the taxpayer for the preceding taxable year OR THE SECOND PRECEDING TAXABLE YEAR, AS APPLICABLE WITH RESPECT TO THE TAXPAYER'S DECLARATION OF ESTIMATED TAX, if a return showing a liability for tax was filed by the taxpayer for [the] SUCH preceding OR SECOND PRECEDING taxable year and such preceding OR SECOND PRECEDING year was a taxable year of twelve months, or (b) An amount equal to the tax computed at the rates applicable to the taxable year, but otherwise on the basis of the facts shown on the return of the taxpayer for, and the law applicable to, the preceding taxable year OR THE SECOND PRECEDING TAXABLE YEAR, AS APPLICABLE WITH RESPECT TO THE TAXPAYER'S DECLARATION OF ESTIMATED TAX, or § 8. Section 2 of chapter 369 of the laws of 2018 amending the tax law relating to unrelated business taxable income of a taxpayer, is amended to read as follows: § 2. This act shall take effect immediately and shall apply to [taxa- ble years beginning] AMOUNTS PAID OR INCURRED on and after January 1, 2018. § 9. Paragraph (b) of subdivision (8) of section 11-602 of the admin- istrative code of the city of New York is amended by adding a new subparagraph (20) to read as follows: (20) THE AMOUNT OF ANY FEDERAL DEDUCTION THAT WOULD HAVE BEEN ALLOWED PURSUANT TO SECTION 250(A)(1)(A) OF THE INTERNAL REVENUE CODE IF THE TAXPAYER HAD NOT MADE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER ONE OF THE INTERNAL REVENUE CODE. § 10. Clause (i) of subparagraph (1) of paragraph (b) of subdivision (3) of section 11-604 of the administrative code of the city of New York is amended to read as follows: (i) In the case of an issuer or obligor subject to tax under this subchapter, SUBCHAPTER THREE-A or subchapter four of this chapter, or subject to tax as a utility corporation under chapter eleven of this title, the issuer's allocation percentage shall be the percentage of the appropriate measure (as defined hereinafter) which is required to be allocated within the city on the report or reports, if any, required of the issuer or obligor under this title for the preceding year. The appropriate measure referred to in the preceding sentence shall be: in the case of an issuer or obligor subject to this subchapter OR SUBCHAP- S. 1509--A 50 A. 2009--A TER THREE-A, entire capital; in the case of an issuer or obligor subject to subchapter four of this chapter, issued capital stock; in the case of an issuer or obligor subject to chapter eleven of this title as a utili- ty corporation, gross income. § 11. This act shall take effect immediately, provided, however, that: (i) section one of this act shall be deemed to have been in full force and effect on and after the effective date of part K of chapter 59 of the laws of 2017; (ii) sections two and six of this act shall be deemed to have been in full force and effect on and after the effective date of part KK of chapter 59 of the laws of 2018; provided, however, that section six of this act shall apply to taxable years beginning on or after January 1, 2018 through taxable years beginning on or before January 1, 2025; (iii) section three of this act shall be deemed to have been in full force and effect on and after the effective date of part A of chapter 59 of the laws of 2014; (iv) sections four, five, and seven of this act shall be deemed to have been in full force and effect on and after the effective date of part Q of chapter 60 of the laws of 2016; (v) section eight of this act shall be deemed to have been in full force and effect on and after the effective date of chapter 369 of the laws of 2018; (vi) section nine of this act shall apply to taxable years beginning on and after January 1, 2018. PART AA Section 1. Section 487 of the real property tax law is amended by adding a new subdivision 10 to read as follows: 10. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION, ON OR AFTER APRIL FIRST, TWO THOUSAND NINETEEN, REAL PROPERTY THAT COMPRISES OR INCLUDES A SOLAR OR WIND ENERGY SYSTEM, FARM WASTE ENERGY SYSTEM, MICROHYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM, MICROCOMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM, ELECTRIC ENER- GY STORAGE SYSTEM, OR FUEL-FLEXIBLE LINEAR GENERATOR AS SUCH TERMS ARE DEFINED IN PARAGRAPHS (B), (F), (H), (J), (L), (N), AND (O) OF SUBDIVI- SION ONE OF THIS SECTION (HEREINAFTER, INDIVIDUALLY OR COLLECTIVELY, "ENERGY SYSTEM"), SHALL BE EXEMPT FROM ANY TAXATION, SPECIAL AD VALOREM LEVIES, AND SPECIAL ASSESSMENTS TO THE EXTENT PROVIDED IN SECTION FOUR HUNDRED NINETY OF THIS ARTICLE, AND THE OWNER OF SUCH PROPERTY SHALL NOT BE SUBJECT TO ANY REQUIREMENT TO ENTER INTO A CONTRACT FOR PAYMENTS IN LIEU OF TAXES IN ACCORDANCE WITH SUBDIVISION NINE OF THIS SECTION, IF: (A) THE ENERGY SYSTEM IS INSTALLED ON REAL PROPERTY THAT IS OWNED OR CONTROLLED BY THE STATE OF NEW YORK, A DEPARTMENT OR AGENCY THEREOF, OR A STATE AUTHORITY AS THAT TERM IS DEFINED BY SUBDIVISION ONE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW; AND (B) THE STATE OF NEW YORK, A DEPARTMENT OR AGENCY THEREOF, OR A STATE AUTHORITY AS THAT TERM IS DEFINED BY SUBDIVISION ONE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW HAS AGREED TO PURCHASE THE ENERGY PRODUCED BY SUCH ENERGY SYSTEM OR THE ENVIRONMENTAL CREDITS OR ATTRIBUTES CREATED BY VIRTUE OF THE ENERGY SYSTEM'S OPERATION, IN ACCORDANCE WITH A WRITTEN AGREEMENT WITH THE OWNER OR OPERATOR OF SUCH ENERGY SYSTEM. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER OF THE REAL PROPERTY ON A FORM PRESCRIBED BY THE COMMISSIONER, WHICH APPLICATION SHALL BE FILED WITH THE ASSESSOR OF THE APPROPRIATE COUNTY, CITY, TOWN OR VILLAGE ON OR BEFORE THE TAXABLE STATUS DATE OF SUCH COUNTY, CITY, TOWN OR VILLAGE. S. 1509--A 51 A. 2009--A § 2. Section 490 of the real property tax law, as amended by chapter 87 of the laws of 2001, is amended to read as follows: § 490. Exemption from special ad valorem levies and special assess- ments. Real property exempt from taxation pursuant to subdivision two of section four hundred, subdivision one of section four hundred four, subdivision one of section four hundred six, sections four hundred eight, four hundred ten, four hundred ten-a, four hundred ten-b, four hundred eighteen, four hundred twenty-a, four hundred twenty-b, four hundred twenty-two, four hundred twenty-six, four hundred twenty-seven, four hundred twenty-eight, four hundred thirty, four hundred thirty-two, four hundred thirty-four, four hundred thirty-six, four hundred thirty- eight, four hundred fifty, four hundred fifty-two, four hundred fifty- four, four hundred fifty-six, four hundred sixty-four, four hundred seventy-two, four hundred seventy-four, [and] four hundred eighty-five AND SUBDIVISION TEN OF SECTION FOUR HUNDRED EIGHTY-SEVEN of this chapter shall also be exempt from special ad valorem levies and special assess- ments against real property located outside cities and villages for a special improvement or service or a special district improvement or service and special ad valorem levies and special assessments imposed by a county improvement district or district corporation except (1) those levied to pay for the costs, including interest and incidental and preliminary costs, of the acquisition, installation, construction, reconstruction and enlargement of or additions to the following improve- ments, including original equipment, furnishings, machinery or appara- tus, and the replacements thereof: water supply and distribution systems; sewer systems (either sanitary or surface drainage or both, including purification, treatment or disposal plants or buildings); waterways and drainage improvements; street, highway, road and parkway improvements (including sidewalks, curbs, gutters, drainage, landscap- ing, grading or improving the right of way) and (2) special assessments payable in installments on an indebtedness including interest contracted prior to July first, nineteen hundred fifty-three, pursuant to section two hundred forty-two of the town law or pursuant to any other compara- ble provision of law. § 3. This act shall take effect immediately. PART BB Section 1. Subdivision 1 of section 107 of the racing, pari-mutuel wagering and breeding law, as added by section 1 of part A of chapter 60 of the laws of 2012, is amended as follows: 1. No person shall be appointed to or employed by the commission if, during the period commencing three years prior to appointment or employ- ment, [said] SUCH person held any direct or indirect interest in, or employment by, any corporation, association or person engaged in gaming activity within the state. Prior to appointment or employment, each member, officer or employee of the commission shall swear or affirm that he or she possesses no interest in any corporation or association hold- ing a franchise, license, registration, certificate or permit issued by the commission. Thereafter, no member or officer of the commission shall hold any direct interest in or be employed by any applicant for or by any corporation, association or person holding a license, registration, franchise, certificate or permit issued by the commission for a period of four years commencing on the date his or her membership with the commission terminates. Further, no employee of the commission may acquire any direct or indirect interest in, or accept employment with, S. 1509--A 52 A. 2009--A any applicant for or any person holding a license, registration, fran- chise, certificate or permit issued by the commission for a period of two years commencing at the termination of employment with the commis- sion. THE COMMISSION MAY, BY RESOLUTION ADOPTED AT A PROPERLY NOTICED PUBLIC MEETING, WAIVE FOR GOOD CAUSE ANY OF ITS PRE-EMPLOYMENT RESTRICTIONS FOR A PROSPECTIVE EMPLOYEE. § 2. This act shall take effect immediately. PART CC 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 DD Section 1. This Part enacts into law legislation relating to the office of gaming inspector general, the thoroughbred breeding and devel- opment fund, the Harry M. Zweig memorial fund and prize payment amounts and revenue distributions of lottery game sales. Each component is whol- ly contained within a Subpart identified as Subparts A through D. 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 corresponding section of the Subpart in which it is found. Section three of this Part sets forth the general effective date of this Part. SUBPART A Section 1. Sections 1368, 1369, 1370, and 1371 of the racing, pari-mu- tuel wagering and breeding law are renumbered sections 130, 131, 132, and 133. § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and breeding law is REPEALED. § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 130. Establishment of the office of gaming inspector general. There is hereby created within the commission the office of gaming inspector general. The head of the office shall be the gaming inspector general who shall be appointed by the governor by and with the advice and consent of the senate. The GAMING inspector general shall serve at the pleasure of the governor. The GAMING inspector general shall report S. 1509--A 53 A. 2009--A directly to the governor. The person appointed as GAMING inspector general shall, upon his or her appointment, have not less than ten years professional experience in law, investigation, or auditing. The GAMING inspector general shall be compensated within the limits of funds avail- able therefor, provided, however, such salary shall be no less than the salaries of certain state officers holding the positions indicated in paragraph (a) of subdivision one of section one hundred sixty-nine of the executive law. § 4. The section heading, opening paragraph and subdivision 7 of section 131 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and such section as renumbered by section one of this act, are amended to read as follows: [State gaming] GAMING inspector general; functions and duties. The [state] gaming inspector general shall have the following duties and responsibilities: 7. establish programs for training commission officers and employees [regarding] IN REGARD TO the prevention and elimination of corruption, fraud, criminal activity, conflicts of interest or abuse in the commis- sion. § 5. The opening paragraph of section 132 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and such section as renumbered by section one of this act, is amended to read as follows: The [state] gaming inspector general shall have the power to: § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 133. Responsibilities of the commission and its officers and employ- ees. 1. Every commission officer or employee shall report promptly to the [state] gaming inspector general any information concerning corruption, fraud, criminal activity, conflicts of interest or abuse by another state officer or employee relating to his or her office or employment, or by a person having business dealings with the commission relating to those dealings. The knowing failure of any officer or employee to so report shall be cause for removal from office or employ- ment or other appropriate penalty under this article. Any officer or employee who acts pursuant to this subdivision by reporting to the [state] gaming inspector general or other appropriate law enforcement official improper governmental action as defined in section seventy- five-b of the civil service law shall not be subject to dismissal, discipline or other adverse personnel action. 2. The commission chair shall advise the governor within ninety days of the issuance of a report by the [state] gaming inspector general as to the remedial action that the commission has taken in response to any recommendation for such action contained in such report. § 7. This act shall take effect immediately. SUBPART B Section 1. Subdivision 1 of section 252 of the racing, pari-mutuel wagering and breeding law, as amended by section 11 of part A of chapter 60 of the laws of 2012, is amended to read as follows: 1. A corporation to be known as the New York state thoroughbred breed- ing and development fund corporation is hereby created. Such corporation shall be a body corporate and politic constituting a public benefit corporation. It shall be administered by a board of directors consisting S. 1509--A 54 A. 2009--A of the chair of the state gaming commission or his or her designee, the commissioner of agriculture and markets, three members of the state gaming commission OR OTHER BONA FIDE RESIDENTS OF THE STATE WHO HAVE A COGENT INTEREST IN THE THOROUGHBRED BREEDING INDUSTRY IN THE STATE as designated by the governor and six members appointed by the governor, all of whom are experienced or have been actively engaged in the breed- ing of thoroughbred horses in New York state, one, the president or the executive director of the statewide thoroughbred breeders association representing the majority of breeders of registered thoroughbreds in New York state, one upon the recommendation of the majority leader of the senate, one upon the recommendation of the speaker of the assembly, one upon the recommendation of the minority leader of the senate, and one upon the recommendation of the minority leader of the assembly. Two of the appointed members shall initially serve for a two year term, two of the appointed members shall initially serve for a three year term and two of the appointed members shall initially serve for a four year term. All successors appointed members shall serve for a four year term. All members shall continue in office until their successors have been appointed and qualified. The governor shall designate the chair from among the sitting members who shall serve as such at the pleasure of the governor. § 2. This act shall take effect immediately. SUBPART C Section 1. Subdivision 1 of section 17 of the public officers law is amended by adding a new paragraph (aa) to read as follows: (AA) FOR THE PURPOSES OF THIS SECTION, THE TERM "EMPLOYEE" SHALL INCLUDE THE MEMBERS OF THE HARRY M. ZWEIG MEMORIAL FUND FOR EQUINE RESEARCH COMMITTEE. § 2. Section 703 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 3 to read as follows: 3. NOTWITHSTANDING THE PROVISIONS OF SECTION ELEVEN OF THE STATE FINANCE LAW AND ANY OTHER INCONSISTENT PROVISION OF LAW, THE FUND MAY ACQUIRE PROPERTY BY THE ACCEPTANCE OF CONDITIONAL GIFTS, GRANTS, DEVISES OR BEQUESTS GIVEN IN FURTHERANCE OF THE MISSION OF THE FUND. § 3. This act shall take effect immediately. SUBPART D Section 1. Paragraph 2 of subdivision a of section 1612 of the tax law, as amended by chapter 174 of the laws of 2013, is amended to read as follows: (2) [sixty-five] SIXTY-FOUR AND ONE-FOURTH percent of the total amount for which tickets have been sold for the "Instant Cash" game in which the participant purchases a preprinted ticket on which dollar amounts or symbols are concealed on the face or the back of such ticket, provided however up to five new games may be offered during the fiscal year, [seventy-five] SEVENTY-FOUR AND ONE-FOURTH percent of the total amount for which tickets have been sold for such five games in which the participant purchases a preprinted ticket on which dollar amounts or symbols are concealed on the face or the back of such ticket; or § 2. The opening paragraph of paragraph 1 of subdivision b of section 1612 of the tax law, as amended by chapter 174 of the laws of 2013, is amended to read as follows: S. 1509--A 55 A. 2009--A Notwithstanding section one hundred twenty-one of the state finance law, on or before the twentieth day of each month, the [division] COMMISSION shall pay into the state treasury, to the credit of the state lottery fund created by section ninety-two-c of the state finance law, NOT LESS THAN FORTY-FIVE PERCENT OF THE TOTAL AMOUNT FOR WHICH TICKETS HAVE BEEN SOLD FOR GAMES DEFINED IN PARAGRAPH FIVE OF SUBDIVISION A OF THIS SECTION DURING THE PRECEEDING MONTH, not less than [forty-five] THIRTY-FIVE percent of the total amount for which tickets have be sold for games defined in paragraph four of subdivision a of this section during the preceding month, not less than [thirty-five] THIRTY percent of the total amount for which tickets have been sold for games defined in paragraph three of subdivision a of this section during the preceding month, not less than twenty AND THREE-FOURTHS percent of the total amount for which tickets have been sold for games defined in paragraph two of subdivision a of this section during the preceding month, provided however that for games with a prize payout of [seventy-five] SEVENTY-FOUR AND ONE-FOURTH percent of the total amount for which tick- ets have been sold, the [division] COMMISSION shall pay not less than ten AND THREE-FOURTHS percent of sales into the state treasury and not less than twenty-five percent of the total amount for which tickets have been sold for games defined in paragraph one of subdivision a of this section during the preceding month; and the balance of the total revenue after payout for prizes for games known as "video lottery gaming," including any joint, multi-jurisdiction, and out-of-state video lottery gaming, § 3. Subdivision a of section 1614 of the tax law, as amended by chap- ter 170 of the laws of 1994, is amended to read as follows: a. No prize claim shall be valid if submitted to the [division] COMMISSION following the expiration of a one-year time period from the date of the drawing or from the close of the game in which a prize was won, and the person otherwise entitled to such prize shall forfeit any claim or entitlement to such prize moneys. Unclaimed prize money, plus interest earned thereon, shall be retained in the lottery prize account to be used for payment of special [lotto] or supplemental [lotto] prizes offered pursuant to the plan or plans specified in this article, [or] AND for promotional purposes to supplement [other] games on an occa- sional basis [not to exceed sixteen weeks within any twelve month period pursuant to the plan or plans specified in this article]. In the event that the director proposes to change any plan for the use of unclaimed prize funds or in the event the director intends to use funds in a game other than the game from which such unclaimed prize funds were derived, the director of the budget, the chairperson of the senate finance committee, and the chairperson of the assembly ways and means committee shall be notified in writing separately detailing the proposed changes to any plan prior to the implementation of the changes. § 4. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. S. 1509--A 56 A. 2009--A § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through D of this Part shall be as specifically set forth in the last section of such Subparts. PART EE Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision b of section 1612 of the tax law are REPEALED and two new subparagraphs (ii) and (iii) are 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. THE AMOUNT OF THE VENDOR'S FEE SHALL BE CALCULATED AS FOLLOWS: (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 ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, THE RATE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE AS FOLLOWS: (1) FORTY-THREE AND ONE-HALF PERCENT FOR A VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES BUT LESS THAN FIFTY MILES FROM A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW; (2) FORTY-NINE PERCENT FOR A VENDOR TACK LOCATED WITHIN FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW; (3) FIFTY-ONE PERCENT FOR VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES BUT LESS THAN FIFTY MILES FROM A NATIVE AMERICAN CLASS III GAMING FACIL- ITY AS DEFINED IN 25 U.S.C. §2703(8); (4) FIFTY-SIX PERCENT FOR A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C §2703(8); (B-1) NOTWITHSTANDING SUBPARAGRAPH (B) OF THIS PARAGRAPH, FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY, FOR A VENDOR TRACK THAT IS LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-SEVEN AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B-2) NOTWITHSTANDING SUBPARAGRAPH (B) OF THIS PARAGRAPH, FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN AND ENDING ON MARCH THIRTY-FIRST TWO THOUSAND TWENTY, FOR A VENDOR TRACK THAT IS LOCATED WITHIN SARATOGA COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-NINE AND ONE-HALF 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 LOCATED AT AQUEDUCT RACETRACK, AT A RATE OF FIFTY PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAP- TER; (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. 1509--A 57 A. 2009--A WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. (III) LESS ANY ADDITIONAL VENDOR'S FEES. ADDITIONAL VENDOR'S FEES SHALL BE CALCULATED AS FOLLOWS: (A) FOR A VENDOR TRACK THAT IS LOCATED WITHIN SULLIVAN COUNTY, WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, SUCH ADDITIONAL VENDOR FEE SHALL BE FIFTEEN AND ONE-TENTH PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B) FOR A VENDOR TRACK THAT IS LOCATED WITHIN ONTARIO COUNTY, WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, SUCH ADDITIONAL VENDOR FEE SHALL BE TEN PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (C) FOR A VENDOR TRACK THAT IS LOCATED WITHIN SARATOGA COUNTY, WITHIN DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, SUCH ADDITIONAL VENDOR FEE SHALL BE TEN PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (D) FOR A VENDOR TRACK THAT IS LOCATED WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, SUCH ADDI- TIONAL VENDOR FEE SHALL BE SIX AND FOUR-TENTHS PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. THE VENDOR TRACK SHALL FORFEIT THIS ADDITIONAL VENDOR FEE FOR ANY TIME PERIOD THAT THE VENDOR TRACK DOES NOT MAINTAIN AT LEAST NINETY PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN. § 2. Subdivision b of section 1612 of the tax law is amended by adding three new paragraphs 1-a, 1-b, and 1-c to read as follows: 1-A. (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERATORS 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 EIGHTEEN 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. (II) 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, ENTER- TAINMENT 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 UNRE- S. 1509--A 58 A. 2009--A IMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. (III) 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. (IV) 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 CAPITAL 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 FACILITY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPITAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT. (V) THE COMPTROLLER OR HIS LEGALLY AUTHORIZED REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGRE- GATED CAPITAL ACCOUNTS. (VI) NOTWITHSTANDING SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH, 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. (VII) ANY BALANCE REMAINING IN THE CAPITAL AWARD ACCOUNT OF A VENDOR TRACK OR OPERATOR OR ANY OTHER VIDEO LOTTERY GAMING FACILITY AS OF MARCH THIRTY-FIRST, TWO THOUSAND NINETEEN SHALL BE TRANSFERRED FOR DEPOSIT INTO A SEGREGATED ACCOUNT ESTABLISHED BY THIS SUBPARAGRAPH. 1-B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION I 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. 1-C. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERA- TOR 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. § 3. This act shall take effect immediately; provided, however, claus- es (A), (B) and (C) of subparagraph (iii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall take effect April 1, 2020 and shall expire and be deemed repealed on March 31, 2023; and provided, however, clause (D) of subparagraph (iii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall take effect June 30, 2019 and shall expire and be deemed repealed March 31, 2023. S. 1509--A 59 A. 2009--A PART FF Section 1. Subdivision 25 of section 1301 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: 25. "Gross gaming revenue". The total of all sums actually received by a gaming facility licensee from gaming operations less the total of all sums paid out as winnings to patrons; provided, however, that the total of all sums paid out as winnings to patrons shall not include the cash equivalent value of any merchandise or thing of value included in a jackpot or payout[; provided further, that the issuance to or wagering by patrons of a gaming facility of any promotional gaming credit shall not be taxable for the purposes of determining gross revenue]. § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 2 to read as follows: 2. PERMISSIBLE DEDUCTIONS. (A) A GAMING FACILITY MAY DEDUCT FROM GROSS GAMING REVENUE THE AMOUNT OF APPROVED PROMOTIONAL GAMING CREDITS ISSUED TO AND WAGERED BY PATRONS OF SUCH GAMING FACILITY. THE AMOUNT OF APPROVED PROMOTIONAL CREDITS SHALL BE CALCULATED AS FOLLOWS: (1) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND EIGHTEEN AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY, AN AGGREGATE MAXIMUM AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVENUE AMOUNT DURING THE SPECIFIED PERIOD; (2) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-THREE, A MAXIMUM AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVEN- UE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD; AND (3) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY- THREE AND THEREAFTER, A MAXIMUM AMOUNT EQUAL TO FIFTEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVENUE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD. (B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, "BASE TAXABLE GROSS GAMING REVENUE AMOUNT" MEANS THAT PORTION OF GROSS GAMING REVENUE NOT ATTRIBUTABLE TO DEDUCTIBLE PROMOTIONAL CREDIT. (C) ANY TAX DUE ON PROMOTIONAL CREDITS DEDUCTED DURING THE FISCAL YEAR IN EXCESS OF THE ALLOWABLE DEDUCTION SHALL BE PAID WITHIN THIRTY DAYS FROM THE END OF THE FISCAL YEAR. (D) ONLY PROMOTIONAL CREDITS THAT ARE ISSUED PURSUANT TO A WRITTEN PLAN APPROVED BY THE COMMISSION AS DESIGNED TO INCREASE REVENUE AT THE FACILITY MAY BE ELIGIBLE FOR SUCH DEDUCTION. THE COMMISSION, IN CONJUNC- TION WITH THE DIRECTOR OF THE BUDGET, MAY SUSPEND APPROVAL OF ANY PLAN WHENEVER THEY JOINTLY DETERMINE THAT THE USE OF THE PROMOTIONAL CREDITS UNDER SUCH PLAN IS NOT EFFECTIVE IN INCREASING THE AMOUNT OF REVENUE EARNED. § 3. This act shall take effect immediately. PART GG Section 1. Subdivision 12 of section 502 of the racing, pari-mutuel wagering and breeding law is amended to read as follows: 12. A. The board of directors shall hold an annual meeting AND MEET NOT LESS THAN QUARTERLY. B. EACH BOARD MEMBER SHALL RECEIVE, NOT LESS THAN SEVEN DAYS IN ADVANCE OF A MEETING, DOCUMENTATION NECESSARY TO ENSURE KNOWLEDGEABLE AND ENGAGED PARTICIPATION. SUCH DOCUMENTATION SHALL INCLUDE MATERIAL RELEVANT TO EACH AGENDA ITEM INCLUDING BACKGROUND INFORMATION OF S. 1509--A 60 A. 2009--A DISCUSSION ITEMS, RESOLUTIONS TO BE CONSIDERED AND ASSOCIATED DOCUMENTS, A MONTHLY FINANCIAL STATEMENT WHICH SHALL INCLUDE AN UPDATED CASH FLOW STATEMENT AND AGED PAYABLE LISTING OF INDUSTRY PAYABLES, FINANCIAL STATEMENTS, MANAGEMENT REPORTS, COMMITTEE REPORTS AND COMPLIANCE ITEMS. C. STAFF OF THE CORPORATION SHALL ANNUALLY SUBMIT TO THE BOARD FOR APPROVAL A FINANCIAL PLAN ACCOMPANIED BY EXPENDITURE, REVENUE AND CASH FLOW PROJECTIONS. THE PLAN SHALL CONTAIN PROJECTION OF REVENUES AND EXPENDITURES BASED ON REASONABLE AND APPROPRIATE ASSUMPTIONS AND METHODS OF ESTIMATIONS, AND SHALL PROVIDE THAT OPERATIONS WILL BE CONDUCTED WITHIN THE CASH RESOURCES AVAILABLE. THE FINANCIAL PLAN SHALL ALSO INCLUDE INFORMATION REGARDING PROJECTED EMPLOYMENT LEVELS, COLLECTIVE BARGAINING AGREEMENTS AND OTHER ACTIONS RELATING TO EMPLOYEE COSTS, CAPITAL CONSTRUCTION AND SUCH OTHER MATTERS AS THE BOARD MAY DIRECT. D. STAFF OF THE CORPORATION SHALL PREPARE AND SUBMIT TO THE BOARD ON A QUARTERLY BASIS A REPORT OF SUMMARIZED BUDGET DATA DEPICTING OVERALL TRENDS, BY MAJOR CATEGORY WITHIN FUNDS, OF ACTUAL REVENUES AND BUDGET EXPENDITURES FOR THE ENTIRE BUDGET RATHER THAN INDIVIDUAL LINE ITEMS, AS WELL AS UPDATED QUARTERLY CASH FLOW PROJECTIONS OF RECEIPTS AND DISBURSEMENTS. SUCH REPORTS SHALL COMPARE REVENUE ESTIMATES AND APPRO- PRIATIONS AS SET FORTH IN SUCH BUDGET AND IN THE QUARTERLY REVENUE AND EXPENDITURE PROJECTIONS SUBMITTED THEREWITH, WITH THE ACTUAL REVENUES AND EXPENDITURES MADE TO DATE. SUCH REPORTS SHALL ALSO COMPARE ACTUAL RECEIPTS AND DISBURSEMENTS WITH THE ESTIMATES CONTAINED IN THE CASH FLOW PROJECTIONS, TOGETHER WITH VARIANCES AND THEIR EXPLANATION. ALL QUARTER- LY REPORTS SHALL BE ACCOMPANIED BY RECOMMENDATIONS FROM THE PRESIDENT SETTING FORTH ANY REMEDIAL ACTION NECESSARY TO RESOLVE ANY UNFAVORABLE BUDGET VARIANCE INCLUDING THE OVERESTIMATION OF REVENUES AND THE UNDER- ESTIMATION OF APPROPRIATIONS. THESE REPORTS SHALL BE COMPLETED WITHIN THIRTY DAYS AFTER THE END OF EACH QUARTER AND SHALL BE SUBMITTED TO THE BOARD BY THE CORPORATION COMPTROLLER. E. REVENUE ESTIMATES AND THE FINANCIAL PLAN SHALL BE REGULARLY REEXAM- INED BY THE BOARD AND STAFF AND SHALL PROVIDE A MODIFIED FINANCIAL PLAN IN SUCH DETAIL AND WITHIN SUCH TIME PERIODS AS THE BOARD MAY REQUIRE. IN THE EVENT OF REDUCTIONS IN SUCH REVENUE ESTIMATES, THE BOARD SHALL CONSIDER AND APPROVE SUCH ADJUSTMENTS IN REVENUE ESTIMATES AND REDUCTIONS IN TOTAL EXPENDITURES AS MAY BE NECESSARY TO CONFORM TO SUCH REVISED REVENUE ESTIMATES OR AGGREGATE EXPENDITURE LIMITATIONS. § 2. Section 503 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 15 to read as follows: 15. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, A REGIONAL OFF-TRACK BETTING CORPORATION MAY, PURSUANT TO A WRITTEN PLAN AND AGREE- MENT WITH ANOTHER REGIONAL OFF-TRACK BETTING CORPORATION APPROVED BY THE COMMISSION, ASSUME THE OFF-TRACK BETTING OPERATIONS AUTHORIZED BY ARTI- CLE FIVE-A OF THIS CHAPTER OF THE OTHER REGIONAL OFF-TRACK BETTING CORPORATION. DURING THE DURATION OF ANY SUCH AGREEMENT, THE REGIONS OF ANY REGIONAL OFF-TRACK BETTING CORPORATIONS, AS DEFINED BY SECTION FIVE HUNDRED NINETEEN OF THIS CHAPTER SHALL BE DEEMED COMBINED, PROVIDED, HOWEVER, THE COMBINING OF SUCH REGIONS SHALL NOT IMPACT THE AUTHORI- ZATION OF A REGIONAL OFF-TRACK BETTING CORPORATION RELINQUISHING OFF- TRACK BETTING OPERATIONS TO BE INCORPORATED, EXERCISE OTHER POWERS, OR TO CONDUCT ANY OTHER ACTIVITIES PERMITTED OR AUTHORIZED BY LAW. § 3. Subdivision 2-a of section 1009 of the racing, pari-mutuel wager- ing and breeding law, is amended by adding a new paragraph (c) to read as follows: (C) THE BOARD MAY AUTHORIZE A SPECIAL DEMONSTRATION PROJECT TO BE LOCATED IN ANY FACILITY LICENSED PURSUANT TO ARTICLE THIRTEEN OF THIS S. 1509--A 61 A. 2009--A CHAPTER. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION FIVE OF THIS SECTION, AN ADMISSION FEE SHALL NOT BE REQUIRED FOR A DEMONSTRATION PROJECT AUTHORIZED IN THIS PARAGRAPH. PROVIDED HOWEVER, ON ANY DAY WHEN A REGIONAL HARNESS TRACK CONDUCTS A LIVE RACE MEETING, A DEMONSTRATION FACILITY WITHIN THAT REGION SHALL PREDOMINANTLY DISPLAY THE LIVE VIDEO OF SUCH REGIONAL HARNESS TRACK. § 4. This act shall take effect immediately. PART HH 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 GG of chapter 59 of the laws of 2018, 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- S. 1509--A 62 A. 2009--A teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [nineteen] TWENTY-FOUR; 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 [nineteen] TWENTY-FOUR; and (iv) no in-home simulcasting 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY-FOUR, the amount used exclu- sively 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 twenty-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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY-FOUR and on any day regardless of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirti- eth, two thousand [nineteen] TWENTY-FOUR. On any day on which a fran- chised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that [have] HAS entered into a written agreement with such facility's repre- sentative 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 GG of chapter 59 of the laws of 2018, 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 S. 1509--A 63 A. 2009--A thirtieth, two thousand [nineteen] TWENTY-FOUR. This section shall supersede 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY-FOUR. 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 GG of chapter 59 of the laws of 2018, 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 [eighteen] TWENTY-THREE, when a franchised corporation is conduct- ing 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 GG of chapter 59 of the laws of 2018, 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, [2019] 2024; 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. S. 1509--A 64 A. 2009--A § 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 GG of chapter 59 of the laws of 2018, 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, [2019] 2024; 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 GG of chapter 59 of the laws of 2018, 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. S. 1509--A 65 A. 2009--A 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 thou- sand one through December thirty-first, two thousand [nineteen] TWENTY- FOUR, 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 thirty-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 [nineteen] TWENTY-FOUR, such payment shall be seven-tenths of one per centum of such pools. § 10. This act shall take effect immediately. PART II Section 1. The racing, pari-mutuel wagering and breeding law is amended by adding a new article XI-A to read as follows: ARTICLE XI-A INTERSTATE COMPACT ON ANTI-DOPING AND DRUG TESTING STANDARDS SECTION 1113. PURPOSES. 1114. DEFINITIONS. 1115. COMPOSITION AND MEETINGS OF COMPACT COMMISSION. 1116. OPERATION OF COMPACT COMMISSION. 1117. GENERAL POWERS AND DUTIES. 1118. OTHER POWERS AND DUTIES. 1119. COMPACT RULE MAKING. 1120. STATUS AND RELATIONSHIP TO MEMBER STATES. 1121. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES. 1122. ENFORCEMENT OF COMPACT. 1123. LEGAL ACTIONS AGAINST COMPACT. 1124. RESTRICTIONS ON AUTHORITY. 1125. CONSTRUCTION, SAVINGS AND SEVERABILITY. § 1113. PURPOSES. THE PURPOSES OF THE COMPACT ARE: A. TO ENABLE MEMBER STATES TO ACT JOINTLY AND COOPERATIVELY TO CREATE MORE UNIFORM, EFFECTIVE, AND EFFICIENT BREED SPECIFIC RULES AND REGU- LATIONS RELATING TO THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDI- CATIONS FOR THE HEALTH AND WELFARE OF THE HORSE AND THE INTEGRITY OF RACING, AND TESTING FOR SUCH SUBSTANCES, IN OR AFFECTING A MEMBER STATE; AND B. TO AUTHORIZE THE NEW YORK STATE GAMING COMMISSION TO PARTICIPATE IN THE COMPACT. § 1114. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: A. "COMPACT COMMISSION" MEANS THE ORGANIZATION OF DELEGATES FROM THE MEMBER STATES THAT IS AUTHORIZED AND EMPOWERED BY THE COMPACT TO CARRY OUT THE PURPOSES OF THE COMPACT; B. "COMPACT RULE" MEANS A RULE OR REGULATION ADOPTED BY A MEMBER STATE REGULATING THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS FOR THE HEALTH AND WELFARE OF THE HORSE AND THE INTEGRITY OF RACING, AND S. 1509--A 66 A. 2009--A TESTING FOR SUCH SUBSTANCES, IN LIVE PARI-MUTUEL HORSE RACING THAT OCCURS IN OR AFFECTS SUCH STATES; C. "DELEGATE" MEANS THE CHAIRPERSON OF THE MEMBER STATE RACING COMMIS- SION OR SIMILAR REGULATORY BODY IN A STATE, OR SUCH PERSON'S DESIGNEE, WHO REPRESENTS THE MEMBER STATE, AS A VOTING MEMBER OF THE COMPACT COMMISSION AND ANYONE WHO IS SERVING AS SUCH PERSON'S ALTERNATE; D. "EQUINE DRUG RULE" MEANS A RULE OR REGULATION THAT RELATES TO THE ADMINISTRATION OF DRUGS, MEDICATIONS, OR OTHER SUBSTANCES TO A HORSE THAT MAY PARTICIPATE IN LIVE HORSE RACING WITH PARI-MUTUEL WAGERING INCLUDING, BUT NOT LIMITED TO, THE REGULATION OF THE PERMISSIBLE USE OF SUCH SUBSTANCES TO ENSURE THE INTEGRITY OF RACING AND THE HEALTH, SAFETY AND WELFARE OF RACE HORSES, APPROPRIATE SANCTIONS FOR RULE VIOLATIONS, AND QUALITY LABORATORY TESTING PROGRAMS TO DETECT SUCH SUBSTANCES IN THE BODILY SYSTEM OF A RACE HORSE; E. "LIVE RACING" MEANS LIVE HORSE RACING WITH PARI-MUTUEL WAGERING; F. "MEMBER STATE" MEANS EACH STATE THAT HAS ENACTED THE COMPACT; G. "NATIONAL INDUSTRY STAKEHOLDER" MEANS A NON-GOVERNMENTAL ORGANIZA- TION THAT FROM A NATIONAL PERSPECTIVE SIGNIFICANTLY REPRESENTS ONE OR MORE CATEGORIES OF PARTICIPANTS IN LIVE RACING AND PARI-MUTUEL WAGERING; H. "PARTICIPANTS IN LIVE RACING" MEANS ALL PERSONS WHO PARTICIPATE IN, OPERATE, PROVIDE INDUSTRY SERVICES FOR, OR ARE INVOLVED WITH LIVE RACING WITH PARI-MUTUEL WAGERING; I. "STATE" MEANS EACH OF THE SEVERAL STATES OF THE UNITED STATES, THE DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO RICO, AND EACH TERRITO- RY OR POSSESSION OF THE UNITED STATES; AND J. "STATE RACING COMMISSION" MEANS THE STATE RACING COMMISSION, OR ITS EQUIVALENT, IN EACH MEMBER STATE. WHERE A MEMBER STATE HAS MORE THAN ONE, IT SHALL MEAN ALL SUCH RACING COMMISSIONS, OR THEIR EQUIVALENTS. § 1115. COMPOSITION AND MEETINGS OF COMPACT COMMISSION. THE MEMBER STATES SHALL CREATE AND PARTICIPATE IN A COMPACT COMMISSION AS FOLLOWS: A. THE COMPACT SHALL COME INTO FORCE WHEN ENACTED BY ANY TWO ELIGIBLE STATES, AND SHALL THEREAFTER BECOME EFFECTIVE AS TO ANY OTHER MEMBER STATE THAT ENACTS THE COMPACT. ANY STATE THAT HAS ADOPTED OR AUTHORIZED PARI-MUTUEL WAGERING OR LIVE HORSE RACING SHALL BE ELIGIBLE TO BECOME A PARTY TO THE COMPACT. A COMPACT RULE SHALL NOT BECOME EFFECTIVE IN A NEW MEMBER STATE BASED MERELY UPON IT ENTERING THE COMPACT. B. THE MEMBER STATES HEREBY CREATE THE INTERSTATE ANTI-DOPING AND DRUG TESTING STANDARDS COMPACT COMMISSION, A BODY CORPORATE AND AN INTERSTATE GOVERNMENTAL ENTITY OF THE MEMBER STATES, TO COORDINATE THE RULE MAKING ACTIONS OF EACH MEMBER STATE RACING COMMISSION THROUGH A COMPACT COMMIS- SION. C. THE COMPACT COMMISSION SHALL CONSIST OF ONE DELEGATE, THE CHAIR- PERSON OF THE STATE RACING COMMISSION OR SUCH PERSON'S DESIGNEE, FROM EACH MEMBER STATE. WHEN A DELEGATE IS NOT PRESENT TO PERFORM ANY DUTY IN THE COMPACT COMMISSION, A DESIGNATED ALTERNATE MAY SERVE. THE PERSON WHO REPRESENTS A MEMBER STATE IN THE COMPACT COMMISSION SHALL SERVE AND PERFORM SUCH DUTIES WITHOUT COMPENSATION OR REMUNERATION; PROVIDED, THAT SUBJECT TO THE AVAILABILITY OF BUDGETED FUNDS, EACH MAY BE REIMBURSED FOR ORDINARY AND NECESSARY COSTS AND EXPENSES. THE DESIGNATION OF A DELEGATE, INCLUDING THE ALTERNATE, SHALL BE EFFECTIVE WHEN WRITTEN NOTICE HAS BEEN PROVIDED TO THE COMPACT COMMISSION. THE DELEGATE, INCLUDING THE ALTERNATE, MUST BE A MEMBER OR EMPLOYEE OF THE STATE RACING COMMISSION. D. THE COMPACT DELEGATE FROM EACH STATE SHALL PARTICIPATE AS AN AGENT OF THE STATE RACING COMMISSION. EACH DELEGATE SHALL HAVE THE ASSISTANCE S. 1509--A 67 A. 2009--A OF THE STATE RACING COMMISSION IN REGARD TO ALL DECISION MAKING AND ACTIONS OF THE STATE IN AND THROUGH THE COMPACT COMMISSION. E. EACH MEMBER STATE, BY ITS DELEGATE, SHALL BE ENTITLED TO ONE VOTE IN THE COMPACT COMMISSION. A MAJORITY VOTE OF THE TOTAL NUMBER OF DELEG- ATES SHALL BE REQUIRED TO PROPOSE A COMPACT RULE, RECEIVE AND DISTRIBUTE ANY FUNDS, AND TO ADOPT, AMEND, OR RESCIND THE BY-LAWS. A COMPACT RULE SHALL TAKE EFFECT IN AND FOR EACH MEMBER STATE WHEN ADOPTED BY A SUPER MAJORITY VOTE OF EIGHTY PERCENT OF THE TOTAL NUMBER OF MEMBER STATES. OTHER COMPACT ACTIONS SHALL REQUIRE A MAJORITY VOTE OF THE DELEGATES WHO ARE MEETING. F. MEETINGS AND VOTES OF THE COMPACT COMMISSION MAY BE CONDUCTED IN PERSON OR BY TELEPHONE OR OTHER ELECTRONIC COMMUNICATION. MEETINGS MAY BE CALLED BY THE CHAIRPERSON OF THE COMPACT COMMISSION OR BY ANY TWO DELEGATES. REASONABLE NOTICE OF EACH MEETING SHALL BE PROVIDED TO ALL DELEGATES SERVING IN THE COMPACT COMMISSION. G. NO ACTION MAY BE TAKEN AT A COMPACT COMMISSION MEETING UNLESS THERE IS A QUORUM, WHICH IS EITHER A MAJORITY OF THE DELEGATES IN THE COMPACT COMMISSION, OR WHERE APPLICABLE, ALL THE DELEGATES FROM ANY MEMBER STATES WHO PROPOSE OR ARE VOTING AFFIRMATIVELY TO ADOPT A COMPACT RULE. H. ONCE EFFECTIVE, THE COMPACT SHALL CONTINUE IN FORCE AND REMAIN BINDING ACCORDING TO ITS TERMS UPON EACH MEMBER STATE; PROVIDED THAT, A MEMBER STATE MAY WITHDRAW FROM THE COMPACT BY REPEALING THE STATUTE THAT ENACTED THE COMPACT INTO LAW. THE RACING COMMISSION OF A WITHDRAWING STATE SHALL GIVE WRITTEN NOTICE OF SUCH WITHDRAWAL TO THE COMPACT CHAIR- PERSON, WHO SHALL NOTIFY THE MEMBER STATE RACING COMMISSIONS. A WITH- DRAWING STATE SHALL REMAIN RESPONSIBLE FOR ANY UNFULFILLED OBLIGATIONS AND LIABILITIES. THE EFFECTIVE DATE OF WITHDRAWAL FROM THE COMPACT SHALL BE THE EFFECTIVE DATE OF THE REPEAL. § 1116. OPERATION OF COMPACT COMMISSION. THE COMPACT COMMISSION IS HEREBY GRANTED, SO THAT IT MAY BE AN EFFECTIVE MEANS TO PURSUE AND ACHIEVE THE PURPOSES OF EACH MEMBER STATE IN THE COMPACT, THE POWER AND DUTY: A. TO ADOPT, AMEND, AND RESCIND BY-LAWS TO GOVERN ITS CONDUCT, AS MAY BE NECESSARY OR APPROPRIATE TO CARRY OUT THE PURPOSES OF THE COMPACT; TO PUBLISH THEM IN A CONVENIENT FORM; AND TO FILE A COPY OF THEM WITH THE STATE RACING COMMISSION OF EACH MEMBER STATE; B. TO ELECT ANNUALLY FROM AMONG THE DELEGATES, INCLUDING ALTERNATES, A CHAIRPERSON, VICE-CHAIRPERSON, AND TREASURER WITH SUCH AUTHORITY AND DUTIES AS MAY BE SPECIFIED IN THE BY-LAWS; C. TO ESTABLISH AND APPOINT COMMITTEES WHICH IT DEEMS NECESSARY FOR THE CARRYING OUT OF ITS FUNCTIONS, INCLUDING ADVISORY COMMITTEES WHICH SHALL BE COMPRISED OF NATIONAL INDUSTRY STAKEHOLDERS AND ORGANIZATIONS AND SUCH OTHER PERSONS AS MAY BE DESIGNATED IN ACCORDANCE WITH THE BY-LAWS, TO OBTAIN THEIR TIMELY AND MEANINGFUL INPUT INTO THE COMPACT RULE MAKING PROCESSES; D. TO ESTABLISH AN EXECUTIVE COMMITTEE, WITH MEMBERSHIP ESTABLISHED IN THE BY-LAWS, WHICH SHALL OVERSEE THE DAY-TO-DAY ACTIVITIES OF COMPACT ADMINISTRATION AND MANAGEMENT BY THE EXECUTIVE DIRECTOR AND STAFF; HIRE AND FIRE AS MAY BE NECESSARY AFTER CONSULTATION WITH THE COMPACT COMMIS- SION; ADMINISTER AND ENFORCE COMPLIANCE WITH THE PROVISIONS, BY-LAWS, AND RULES OF THE COMPACT; AND PERFORM SUCH OTHER DUTIES AS THE BY-LAWS MAY ESTABLISH; E. TO CREATE, APPOINT, AND ABOLISH ALL THOSE OFFICES, EMPLOYMENTS, AND POSITIONS, INCLUDING AN EXECUTIVE DIRECTOR, USEFUL TO FULFILL ITS PURPOSES; S. 1509--A 68 A. 2009--A F. TO DELEGATE DAY-TO-DAY MANAGEMENT AND ADMINISTRATION OF ITS DUTIES, AS NEEDED, TO AN EXECUTIVE DIRECTOR AND SUPPORT STAFF; AND G. TO ADOPT AN ANNUAL BUDGET SUFFICIENT TO PROVIDE FOR THE PAYMENT OF THE REASONABLE EXPENSES OF ITS ESTABLISHMENT, ORGANIZATION, AND ONGOING ACTIVITIES; PROVIDED, THAT THE BUDGET SHALL BE FUNDED BY ONLY VOLUNTARY CONTRIBUTIONS. § 1117. GENERAL POWERS AND DUTIES. TO ALLOW EACH MEMBER STATE, AS AND WHEN IT CHOOSES, TO ACHIEVE THE PURPOSE OF THE COMPACT THROUGH JOINT AND COOPERATIVE ACTION, THE MEMBER STATES ARE HEREBY GRANTED THE POWER AND DUTY, BY AND THROUGH THE COMPACT COMMISSION: A. TO ACT JOINTLY AND COOPERATIVELY TO CREATE A MORE EQUITABLE AND UNIFORM PARI-MUTUEL RACING AND WAGERING INTERSTATE REGULATORY FRAMEWORK BY THE ADOPTION OF STANDARDIZED RULES FOR THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS FOR THE HEALTH, AND WELFARE OF THE HORSE AND THE INTEGRITY OF RACING, INCLUDING RULES GOVERNING THE USE OF DRUGS AND MEDICATIONS AND DRUG TESTING; B. TO COLLABORATE WITH NATIONAL INDUSTRY STAKEHOLDERS AND INDUSTRY ORGANIZATIONS, INCLUDING THE ASSOCIATION OF RACING COMMISSIONERS INTER- NATIONAL, INC. AND THE RACING MEDICATION AND TESTING CONSORTIUM, IN THE DESIGN AND IMPLEMENTATION OF COMPACT RULES IN A MANNER THAT SERVES THE BEST INTERESTS OF RACING; AND C. TO PROPOSE AND ADOPT BREED SPECIFIC COMPACT EQUINE DRUGS AND MEDI- CATIONS RULES FOR THE HEALTH, AND WELFARE OF THE HORSE, INCLUDING RULES GOVERNING THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS AND DRUG TESTING, WHICH SHALL HAVE THE FORCE AND EFFECT OF STATE RULES OR REGULATIONS IN THE MEMBER STATES, TO GOVERN LIVE PARI-MUTUEL HORSE RACING. § 1118. OTHER POWERS AND DUTIES. THE COMPACT COMMISSION MAY EXERCISE SUCH INCIDENTAL POWERS AND DUTIES AS MAY BE NECESSARY AND PROPER FOR IT TO FUNCTION IN A USEFUL MANNER, INCLUDING BUT NOT LIMITED TO THE POWER AND DUTY: A. TO ENTER INTO CONTRACTS AND AGREEMENTS WITH GOVERNMENTAL AGENCIES AND OTHER PERSONS, INCLUDING OFFICERS AND EMPLOYEES OF A MEMBER STATE, TO PROVIDE PERSONAL SERVICES FOR ITS ACTIVITIES AND SUCH OTHER SERVICES AS MAY BE NECESSARY; B. TO BORROW, ACCEPT, AND CONTRACT FOR THE SERVICES OF PERSONNEL FROM ANY STATE, FEDERAL, OR OTHER GOVERNMENTAL AGENCY, OR FROM ANY OTHER PERSON OR ENTITY; C. TO RECEIVE INFORMATION FROM AND TO PROVIDE INFORMATION TO EACH MEMBER STATE RACING COMMISSION, INCLUDING ITS OFFICERS AND STAFF, ON SUCH TERMS AND CONDITIONS AS MAY BE ESTABLISHED IN THE BY-LAWS; D. TO ACQUIRE, HOLD, AND DISPOSE OF ANY REAL OR PERSONAL PROPERTY BY GIFT, GRANT, PURCHASE, LEASE, LICENSE, AND SIMILAR MEANS AND TO RECEIVE ADDITIONAL FUNDS THROUGH GIFTS, GRANTS, AND APPROPRIATIONS; E. WHEN AUTHORIZED BY A COMPACT RULE, TO CONDUCT HEARINGS AND RENDER REPORTS AND ADVISORY DECISIONS AND ORDERS; AND F. TO ESTABLISH IN THE BY-LAWS THE REQUIREMENTS THAT SHALL DESCRIBE AND GOVERN ITS DUTIES TO CONDUCT OPEN OR PUBLIC MEETINGS AND TO PROVIDE PUBLIC ACCESS TO COMPACT RECORDS AND INFORMATION. § 1119. COMPACT RULE MAKING. IN THE EXERCISE OF ITS RULE MAKING AUTHORITY, THE COMPACT COMMISSION SHALL: A. ENGAGE IN FORMAL RULE MAKING PURSUANT TO A PROCESS THAT SUBSTAN- TIALLY CONFORMS TO THE MODEL STATE ADMINISTRATIVE PROCEDURE ACT OF 1981 AS AMENDED, AS MAY BE APPROPRIATE TO THE ACTIONS AND OPERATIONS OF THE COMPACT COMMISSION; S. 1509--A 69 A. 2009--A B. GATHER INFORMATION AND ENGAGE IN DISCUSSIONS WITH ADVISORY COMMIT- TEES, NATIONAL INDUSTRY STAKEHOLDERS, AND OTHERS, INCLUDING AN OPPORTU- NITY FOR INDUSTRY ORGANIZATIONS TO SUBMIT INPUT TO MEMBER STATE RACING COMMISSIONS ON THE STATE LEVEL, TO FOSTER, PROMOTE AND CONDUCT A COLLA- BORATIVE APPROACH IN THE DESIGN AND ADVANCEMENT OF COMPACT RULES IN A MANNER THAT SERVES THE BEST INTERESTS OF RACING AND AS ESTABLISHED IN THE BY-LAWS; C. DIRECT THE PUBLICATION IN EACH MEMBER STATE OF EACH EQUINE DRUG RULE PROPOSED BY THE COMPACT COMMISSION, CONDUCT A REVIEW OF PUBLIC COMMENTS RECEIVED BY EACH MEMBER STATE RACING COMMISSION AND THE COMPACT COMMISSION IN RESPONSE TO THE PUBLICATION OF ITS RULE MAKING PROPOSALS, CONSULT WITH NATIONAL INDUSTRY STAKEHOLDERS AND PARTICIPANTS IN LIVE RACING WITH REGARD TO SUCH PROCESS AND ANY REVISIONS TO THE COMPACT RULE PROPOSAL, AND MEET UPON THE COMPLETION OF THE PUBLIC COMMENT PERIOD TO CONDUCT A VOTE ON THE ADOPTION OF THE PROPOSED COMPACT RULE AS A STATE RULE IN THE MEMBER STATES; AND D. HAVE A STANDING COMMITTEE THAT REVIEWS AT LEAST QUARTERLY THE PARTICIPATION IN AND VALUE OF COMPACT RULES AND, WHEN IT DETERMINES THAT A REVISION IS APPROPRIATE OR WHEN REQUESTED TO BY ANY MEMBER STATE, SUBMITS A REVISING PROPOSED COMPACT RULE. TO THE EXTENT A REVISION WOULD ONLY ADD OR REMOVE A MEMBER STATE OR STATES FROM WHERE A COMPACT RULE HAS BEEN ADOPTED, THE VOTE REQUIRED BY THIS SECTION SHALL BE REQUIRED OF ONLY SUCH STATE OR STATES. THE STANDING COMMITTEE SHALL GATHER INFORMA- TION AND ENGAGE IN DISCUSSIONS WITH NATIONAL INDUSTRY STAKEHOLDERS, WHO MAY ALSO DIRECTLY RECOMMEND A COMPACT RULE PROPOSAL OR REVISION TO THE COMPACT COMMITTEE. § 1120. STATUS AND RELATIONSHIP TO MEMBER STATES. A. THE COMPACT COMMISSION, AS AN INTERSTATE GOVERNMENTAL ENTITY, SHALL BE EXEMPT FROM ALL TAXATION IN AND BY THE MEMBER STATES. B. THE COMPACT COMMISSION SHALL NOT PLEDGE THE CREDIT OF ANY MEMBER STATE EXCEPT BY AND WITH THE APPROPRIATE LEGAL AUTHORITY OF THAT STATE. C. EACH MEMBER STATE SHALL REIMBURSE OR OTHERWISE PAY THE EXPENSES OF ITS DELEGATE, INCLUDING ANY ALTERNATE, IN THE COMPACT COMMISSION. D. NO MEMBER STATE, EXCEPT AS PROVIDED IN SECTION ELEVEN HUNDRED TWEN- TY-THREE OF THIS ARTICLE, SHALL BE HELD LIABLE FOR THE DEBTS OR OTHER FINANCIAL OBLIGATIONS INCURRED BY THE COMPACT COMMISSION. E. NO MEMBER STATE SHALL HAVE, WHILE IT PARTICIPATES IN THE COMPACT COMMISSION, ANY CLAIM TO OR OWNERSHIP OF ANY PROPERTY HELD BY OR VESTED IN THE COMPACT COMMISSION OR TO ANY COMPACT COMMISSION FUNDS HELD PURSU- ANT TO THE COMPACT EXCEPT FOR STATE LICENSE OR OTHER FEES OR MONEYS COLLECTED BY THE COMPACT COMMISSION AS ITS AGENT. F. THE COMPACT DISSOLVES UPON THE DATE OF THE WITHDRAWAL OF THE MEMBER STATE THAT REDUCES MEMBERSHIP IN THE COMPACT TO ONE STATE. UPON DISSOL- UTION, THE COMPACT BECOMES NULL AND VOID AND SHALL BE OF NO FURTHER FORCE OR EFFECT, ALTHOUGH EQUINE DRUG RULES ADOPTED THROUGH THE COMPACT SHALL REMAIN STATE RULES IN EACH MEMBER STATE THAT HAD ADOPTED THEM, AND THE BUSINESS AND AFFAIRS OF THE COMPACT SHALL BE CONCLUDED AND ANY SURPLUS FUNDS SHALL BE DISTRIBUTED TO THE FORMER MEMBER STATES IN ACCORDANCE WITH THE BY-LAWS. § 1121. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES. A. EACH MEMBER STATE IN THE COMPACT SHALL ACCEPT THE DECISIONS, DULY APPLICABLE TO IT, OF THE COMPACT COMMISSION IN REGARD TO COMPACT RULES AND RULE MAKING. B. THE COMPACT SHALL NOT BE CONSTRUED TO DIMINISH OR LIMIT THE POWERS AND RESPONSIBILITIES OF THE MEMBER STATE RACING COMMISSION OR SIMILAR REGULATORY BODY, OR TO INVALIDATE ANY ACTION IT HAS PREVIOUSLY TAKEN, EXCEPT TO THE EXTENT IT HAS, BY ITS COMPACT DELEGATE, EXPRESSED ITS S. 1509--A 70 A. 2009--A CONSENT TO A SPECIFIC RULE OR OTHER ACTION OF THE COMPACT COMMISSION. THE COMPACT DELEGATE FROM EACH STATE SHALL SERVE AS THE AGENT OF THE STATE RACING COMMISSION AND SHALL POSSESS SUBSTANTIAL KNOWLEDGE AND EXPERIENCE AS A REGULATOR OR PARTICIPANT IN THE HORSE RACING INDUSTRY. § 1122. ENFORCEMENT OF COMPACT. A. THE COMPACT COMMISSION SHALL HAVE STANDING TO INTERVENE IN ANY LEGAL ACTION THAT PERTAINS TO THE SUBJECT MATTER OF THE COMPACT AND MIGHT AFFECT ITS POWERS, DUTIES, OR ACTIONS. B. THE COURTS AND EXECUTIVE IN EACH MEMBER STATE SHALL ENFORCE THE COMPACT AND TAKE ALL ACTIONS NECESSARY AND APPROPRIATE TO EFFECTUATE ITS PURPOSES AND INTENT. COMPACT PROVISIONS, BY-LAWS, AND RULES SHALL BE RECEIVED BY ALL JUDGES, DEPARTMENTS, AGENCIES, BODIES, AND OFFICERS OF EACH MEMBER STATE AND ITS POLITICAL SUBDIVISIONS AS EVIDENCE OF THEM. § 1123. LEGAL ACTIONS AGAINST COMPACT. A. ANY PERSON MAY COMMENCE A CLAIM, ACTION, OR PROCEEDING AGAINST THE COMPACT COMMISSION IN STATE COURT FOR DAMAGES. THE COMPACT COMMISSION SHALL HAVE THE BENEFIT OF THE SAME LIMITS OF LIABILITY, DEFENSES, RIGHTS TO INDEMNITY AND DEFENSE BY THE STATE, AND OTHER LEGAL RIGHTS AND DEFENSES FOR NON-COMPACT MATTERS OF THE STATE RACING COMMISSION IN THE STATE. ALL LEGAL RIGHTS AND DEFENSES THAT ARISE FROM THE COMPACT SHALL ALSO BE AVAILABLE TO THE COMPACT COMMISSION. B. A COMPACT DELEGATE, ALTERNATE, OR OTHER MEMBER OR EMPLOYEE OF A STATE RACING COMMISSION WHO UNDERTAKES COMPACT ACTIVITIES OR DUTIES DOES SO IN THE COURSE OF BUSINESS OF THEIR STATE RACING COMMISSION, AND SHALL HAVE THE BENEFIT OF THE SAME LIMITS OF LIABILITY, DEFENSES, RIGHTS TO INDEMNITY AND DEFENSE BY THE STATE, AND OTHER LEGAL RIGHTS AND DEFENSES FOR NON-COMPACT MATTERS OF STATE EMPLOYEES IN THEIR STATE. THE EXECUTIVE DIRECTOR AND OTHER EMPLOYEES OF THE COMPACT COMMISSION SHALL HAVE THE BENEFIT OF THESE SAME LEGAL RIGHTS AND DEFENSES OF STATE EMPLOYEES IN THE MEMBER STATE IN WHICH THEY ARE PRIMARILY EMPLOYED. ALL LEGAL RIGHTS AND DEFENSES THAT ARISE FROM THE COMPACT SHALL ALSO BE AVAILABLE TO THEM. C. EACH MEMBER STATE SHALL BE LIABLE FOR AND PAY JUDGMENTS FILED AGAINST THE COMPACT COMMISSION TO THE EXTENT RELATED TO ITS PARTIC- IPATION IN THE COMPACT. WHERE LIABILITY ARISES FROM ACTION UNDERTAKEN JOINTLY WITH OTHER MEMBER STATES, THE LIABILITY SHALL BE DIVIDED EQUALLY AMONG THE STATES FOR WHOM THE APPLICABLE ACTION OR OMISSION OF THE EXEC- UTIVE DIRECTOR OR OTHER EMPLOYEES OF THE COMPACT COMMISSION WAS UNDER- TAKEN; AND NO MEMBER STATE SHALL CONTRIBUTE TO OR PAY, OR BE JOINTLY OR SEVERALLY OR OTHERWISE LIABLE FOR, ANY PART OF ANY JUDGMENT BEYOND ITS SHARE AS DETERMINED IN ACCORDANCE WITH THIS SECTION. § 1124. RESTRICTIONS ON AUTHORITY. A. NEW YORK SUBSTANTIVE STATE LAWS APPLICABLE TO PARI-MUTUEL HORSE RACING AND WAGERING SHALL REMAIN IN FULL FORCE AND EFFECT. B. COMPACT RULES SHALL NOT PRECLUDE SUBSEQUENT RULEMAKING IN NEW YORK STATE ON THE SAME OR RELATED MATTER. THE MOST RECENTLY ADOPTED RULE SHALL THEREBY BECOME THE GOVERNING LAW. C. NEW YORK STATE SHALL NOT PARTICIPATE IN OR APPLY THIS INTERSTATE COMPACT TO ANY ASPECT OF STANDARDBRED RACING. § 1125. CONSTRUCTION, SAVINGS AND SEVERABILITY. A. THE COMPACT SHALL BE LIBERALLY CONSTRUED SO AS TO EFFECTUATE ITS PURPOSES. THE PROVISIONS OF THE COMPACT SHALL BE SEVERABLE AND IF ANY PHRASE, CLAUSE, SENTENCE, OR PROVISION OF THE COMPACT IS DECLARED TO BE CONTRARY TO THE CONSTITU- TION OF THE UNITED STATES OR OF ANY MEMBER STATE, OR THE APPLICABILITY OF THE COMPACT TO ANY GOVERNMENT, AGENCY, PERSON, OR CIRCUMSTANCE IS HELD INVALID, THE VALIDITY OF THE REMAINDER OF THE COMPACT AND ITS APPLICABILITY TO ANY GOVERNMENT, AGENCY, PERSON, OR CIRCUMSTANCE SHALL S. 1509--A 71 A. 2009--A NOT BE AFFECTED. IF ALL OR SOME PORTION OF THE COMPACT IS HELD TO BE CONTRARY TO THE CONSTITUTION OF ANY MEMBER STATE, THE COMPACT SHALL REMAIN IN FULL FORCE AND EFFECT AS TO THE REMAINING MEMBER STATES AND IN FULL FORCE AND EFFECT AS TO THE STATE AFFECTED AS TO ALL SEVERABLE MATTERS. B. IN THE EVENT OF ANY ALLEGATION, FINDING, OR RULING AGAINST THE COMPACT OR ITS PROCEDURES OR ACTIONS, PROVIDED THAT A MEMBER STATE HAS FOLLOWED THE COMPACT'S STATED PROCEDURES, ANY RULE IT PURPORTED TO ADOPT USING THE PROCEDURES OF THIS STATUTE SHALL CONSTITUTE A DULY ADOPTED AND VALID STATE RULE. § 2. This act shall take effect immediately. PART JJ Section 1. Section 2 of part EE of chapter 59 of the laws of 2018, amending the racing, pari-mutuel wagering and breeding law, relating to adjusting the franchise payment establishing an advisory committee to review the structure, operations and funding of equine drug testing and research, is amended to read as follows: § 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] 2019 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 2. Subdivision 1 of section 902 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 15 of the laws of 2010, is amended to read as follows: 1. In order to assure the public's confidence and continue the high degree of integrity in racing at the pari-mutuel betting tracks, equine drug testing at race meetings shall be conducted by a [state college within this state with an approved equine science program] SUITABLE LABORATORY, AS THE GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION. The [state racing and wagering board] GAMING COMMISSION shall promulgate any rules and regulations necessary to implement the provisions of this section, including administrative penalties of loss of purse money, fines, or denial, suspension[,] or revocation of a license for racing drugged horses. S. 1509--A 72 A. 2009--A § 3. This act shall take effect immediately. PART KK Section 1. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 104-a to read as follows: § 104-A. REGISTRATION TO ENGAGE IN GAMING ACTIVITY. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMISSION MAY REQUIRE ANY PERSON, CORPORATION OR ASSOCIATION INTENDING TO ENGAGE IN ANY GAMING ACTIVITY REGULATED BY THE COMMISSION TO SUBMIT A PRIMARY REGISTRATION TO THE COMMISSION. 1. FOR THE PURPOSES OF THIS SECTION, WHEN A PERSON IS REQUIRED TO SUBMIT A REGISTRATION, ANY AND ALL LICENSES, REGISTRATIONS, CERTIF- ICATES, PERMITS OR APPROVALS ISSUED TO SUCH PERSON AS REQUIRED UNDER THIS CHAPTER OR UNDER ARTICLE THIRTY-FOUR OF THE TAX LAW SHALL BE CONSIDERED SUB-REGISTRATIONS OR SUB-LICENSES TO THE AFOREMENTIONED REGISTRATION. NO INDIVIDUAL SHALL ENGAGE IN ANY GAMING ACTIVITY WITHOUT A VALID SUB-REGISTRATION OR SUB-LICENSE AUTHORIZING SUCH ACTIVITY. 2. THE PRIMARY REGISTRATION TO ENGAGE IN GAMING ACTIVITIES SHALL SOLE- LY BE AN INFORMATIONAL RETURN CONTAINING SUCH INFORMATION THE COMMISSION DEEMS APPLICABLE TO ALL SUB-REGISTRATIONS OR SUB-LICENSES. THE COMMIS- SION SHALL REQUIRE SEPARATE APPLICATIONS FOR ALL SUB-REGISTRATIONS OR SUB-LICENSES CONTAINING ALL SUPPLEMENTAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY. ALL COMMISSION DETERMINATIONS SHALL BE MADE ON AN APPLICANT'S SUB-RE- GISTRATION OR SUB-LICENSE AND NOT ON THE PRIMARY REGISTRATION. ANY INFORMATION OBTAINED FOR OR CONTAINED IN THE PRIMARY REGISTRATION AND ALL ASSOCIATED SUB-REGISTRATIONS OR SUB-LICENSES MAY BE USED IN ANY SUBSEQUENT LICENSING AND REGISTRATION DETERMINATIONS. 3. PURSUANT TO THE COMMISSION'S AUTHORITY GRANTED BY SUBDIVISIONS THIRTEEN AND FOURTEEN OF SECTION ONE HUNDRED FOUR OF THIS ARTICLE, THE COMMISSION MAY REQUIRE A BACKGROUND INVESTIGATION AND A CRIMINAL HISTORY RECORD SEARCH FOR ANY PRIMARY OR SUB-REGISTRATION OR SUB-LICENSE SOUGHT. THE COMMISSION SHALL HAVE THE RIGHT TO REQUEST NEW INFORMATION UPON SUBMISSION OF ANY NEW SUB-REGISTRATION OR SUB-LICENSE APPLICATION. FOR THE PURPOSES OF THIS SECTION, UPON AN INITIAL SUB-REGISTRATION OR SUB-LICENSE APPLICATION AND ANY SUBSEQUENT SUB-APPLICATIONS AS MAY BE REQUIRED BY THE COMMISSION, EACH APPLICANT SHALL SUBMIT TO THE COMMIS- SION THE APPLICANT'S NAME, ADDRESS, FINGERPRINTS AND WRITTEN CONSENT FOR CRIMINAL HISTORY INFORMATION AS DEFINED IN PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-FIVE-B OF THE EXECUTIVE LAW, TO BE PERFORMED. THE COMMISSION IS HEREBY AUTHORIZED TO EXCHANGE FINGERPRINT DATA WITH AND RECEIVE CRIMINAL HISTORY RECORD INFORMATION FROM THE STATE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE FEDERAL BUREAU OF INVESTI- GATION CONSISTENT WITH APPLICABLE STATE AND FEDERAL LAWS, RULES AND REGULATIONS. THE APPLICANT SHALL PAY THE FEE FOR SUCH CRIMINAL HISTORY INFORMATION AS ESTABLISHED PURSUANT TO ARTICLE THIRTY-FIVE OF THE EXECU- TIVE LAW. THE STATE DIVISION OF CRIMINAL JUSTICE SERVICES SHALL PROMPTLY NOTIFY THE COMMISSION IN THE EVENT A CURRENT OR PROSPECTIVE LICENSEE, WHO WAS THE SUBJECT OF SUCH CRIMINAL HISTORY INFORMATION PURSUANT TO THIS SECTION, IS ARRESTED FOR A CRIME OR OFFENSE IN THIS STATE AFTER THE DATE THE CHECK WAS PERFORMED. 4. PRIMARY REGISTRATIONS SHALL EXPIRE FIVE YEARS FROM THE DATE OF SUBMISSION, PROVIDED, HOWEVER, ANY SUB-REGISTRATION OR SUB-LICENSE SHALL CONTINUE THROUGH ITS EXPIRATION. NOTWITHSTANDING THIS PROVISION, THE COMMISSION MAY SUSPEND ANY SUB-REGISTRATION OR SUB-LICENSE THAT HAS AN S. 1509--A 73 A. 2009--A EXPIRED PRIMARY REGISTRATION UNTIL SUCH PRIMARY REGISTRATION IS RENEWED. THE COMMISSION SHALL ESTABLISH A SCHEDULE TO REGISTER ANY INDIVIDUAL OR ENTITY WHO POSSESSED A SUB-REGISTRATION OR SUB-LICENSE PRIOR TO THE IMPLEMENTATION OF THIS SECTION. 5. THE COMMISSION SHALL PROMULGATE RULES AND REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION AND ENSURE THAT ALL LICENSING AND REGIS- TRATION REQUIREMENTS OF THIS CHAPTER AND ARTICLE THIRTY-FOUR OF THE TAX LAW ARE ADEQUATELY ADDRESSED IN THE IMPLEMENTATION. § 2. Section 1301 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 31-a to read as follows: 31-A. "NON-GAMING EMPLOYEE". ANY NATURAL PERSON, NOT OTHERWISE INCLUDED IN THE DEFINITION OF CASINO KEY EMPLOYEE OR GAMING EMPLOYEE, WHO IS EMPLOYED BY A GAMING FACILITY LICENSEE, OR A HOLDING OR INTERME- DIARY COMPANY OF A GAMING FACILITY LICENSEE, AND PERFORMS SERVICES AND DUTIES UPON THE PREMISES OF A GAMING FACILITY, WHOSE DUTIES DO NOT RELATE TO THE OPERATION OF GAMING ACTIVITIES, AND WHO IS NOT REGULARLY REQUIRED TO WORK IN RESTRICTED AREAS SUCH THAT REGISTRATION OF A NON- GAMING EMPLOYEE IS APPROPRIATE. § 3. Paragraph (c) of subdivision 1 of section 1318 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: (c) the conviction of the applicant, or of any person required to be qualified under this article as a condition of a license, of any offense in any jurisdiction which is or would be a [felony or other] crime involving public integrity, embezzlement, theft, fraud, [or] perjury, REPRESENTS A SIGNIFICANT THREAT TO PUBLIC SAFETY, OR WOULD OTHERWISE POSE A THREAT TO THE EFFECTIVE REGULATION OF CASINO GAMING; § 4. Subdivision 4 of section 1322 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: 4. All applicants, licensees, registrants, and any other person who shall be qualified pursuant to this article shall have the continuing duty to provide any assistance or information required by the commis- sion, and to cooperate in any inquiry, investigation or hearing conducted by the commission. If, upon issuance of a formal request to answer or produce information, evidence or testimony, any applicant, licensee, registrant, or any other person who shall be qualified pursu- ant to this article refuses to comply, the application, license, regis- tration or qualification of such person may be SUSPENDED, denied or revoked. § 5. Subdivision 3 of section 1323 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: 3. The commission shall deny a casino key employee license to any applicant who is disqualified on the basis of the criteria contained in section [one thousand three] THIRTEEN hundred eighteen of this [title] ARTICLE, subject to notice and hearing. PROVIDED THAT, NO CASINO KEY EMPLOYEE LICENSE SHALL BE DENIED OR REVOKED ON THE BASIS OF A CONVICTION OF ANY OF THE OFFENSES ENUMERATED IN THIS ARTICLE AS DISQUALIFICATION CRITERIA OR THE COMMISSION OF ANY ACT OR ACTS WHICH WOULD CONSTITUTE ANY OFFENSE UNDER SECTION THIRTEEN HUNDRED EIGHTEEN OF THIS ARTICLE, PROVIDED THAT THE APPLICANT HAS AFFIRMATIVELY DEMONSTRATED THE APPLI- CANT'S REHABILITATION, PURSUANT TO ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW. S. 1509--A 74 A. 2009--A § 6. Subdivision 4 of section 1323 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: 4. Upon [receipt of such criminal history information] DETERMINATION THAT AN APPLICANT IS DISQUALIFIED ON THE BASIS OF THE APPLICANT'S CRIMI- NAL HISTORY, the commission shall provide such applicant with a copy of such criminal history information, together with a copy of article twen- ty-three-A of the correction law, and inform such applicant of his or her right to seek correction of any incorrect information contained in such criminal history information pursuant to regulations and procedures established by the division of criminal justice services. Except as otherwise provided by law, such criminal history information shall be confidential and any person who willfully permits the release of such confidential criminal history information to persons not permitted to receive such information shall be guilty of a misdemeanor. § 7. Section 1324 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: § 1324. Gaming AND NON-GAMING employee registration. 1. No person may commence employment as a gaming OR NON-GAMING employee unless such person has a valid registration [on file with the] ISSUED BY THE commis- sion, which registration shall be prepared and filed in accordance with the regulations promulgated hereunder. 2. A gaming OR NON-GAMING employee registrant shall produce such information as the commission by regulation may require. [Subsequent to the registration of a gaming employee, the executive director may] THE COMMISSION MAY DENY, revoke, suspend, limit, or otherwise restrict the registration upon a finding that the registrant is disqualified on the basis of the criteria contained in section [one thousand three] THIRTEEN hundred eighteen of this [title] ARTICLE. If a gaming OR NON-GAMING employee registrant has not been employed in any position within a gaming facility for a period of three years, the registration of that gaming OR NON-GAMING employee shall lapse. 3. No gaming OR NON-GAMING employee registration shall be denied or revoked on the basis of a [misdemeanor] conviction of any of the offenses enumerated in this article as disqualification criteria or the commission of any act or acts which would constitute any offense under section [one thousand three] THIRTEEN hundred eighteen of this [title] ARTICLE, provided that the registrant has affirmatively demonstrated the registrant's rehabilitation, pursuant to article twenty-three-A of the correction law. 4. For the purposes of this section, each GAMING OR NON-GAMING regis- trant shall submit to the commission the registrant's name, address, fingerprints and written consent for a criminal history information to be performed. The commission is hereby authorized to exchange finger- print data with and receive criminal history information as defined in paragraph (c) of subdivision one of section eight hundred forty-five-b of the executive law from the state division of criminal justice services and the federal bureau of investigation consistent with appli- cable state and federal laws, rules and regulations. The registrant shall pay the fee for such criminal history information as established pursuant to article thirty-five of the executive law. The state division of criminal justice services shall promptly notify the commission in the event a current or prospective licensee OR REGISTRANT, who was the subject of a criminal history information pursuant to this section, is S. 1509--A 75 A. 2009--A arrested for a crime or offense in this state after the date the check was performed. 5. Upon [receipt of such criminal history information] DETERMINATION THAT AN APPLICANT IS DISQUALIFIED ON THE BASIS OF THE APPLICANT'S CRIMI- NAL HISTORY, the [Commission] COMMISSION shall provide such applicant with a copy of such criminal history information, together with a copy of article twenty-three-A of the correction law, and inform such appli- cant of his or her right to seek correction of any incorrect information contained in such criminal history information pursuant to regulations and procedures established by the division of criminal justice services. Except as otherwise provided by law, such criminal history information shall be confidential and any person who willfully permits the release of such confidential criminal history information to persons not permit- ted to receive such information shall be guilty of a misdemeanor. 6. EACH APPLICANT FOR A GAMING REGISTRATION SHALL PRODUCE SUCH INFOR- MATION, DOCUMENTATION AND ASSURANCES AS MAY BE REQUIRED TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THE APPLICANT'S GOOD CHARACTER, HONESTY AND INTEGRITY. SUCH INFORMATION SHALL INCLUDE DATA PERTAINING TO CHARAC- TER, REPUTATION, CRIMINAL HISTORY INFORMATION AND PRIOR ASSOCIATIONS WITH GAMING OPERATIONS IN ANY CAPACITY, POSITION, OR EMPLOYMENT IN A JURISDICTION THAT PERMITS SUCH ACTIVITY. § 8. Section 1325 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: § 1325. Approval, denial and renewal of employee licenses and regis- trations. 1. Upon the filing of an application for a casino key employee license or gaming employee registration required by this article and after submission of such supplemental information as the commission may require, the commission shall conduct or cause to be conducted such investigation into the qualification of the applicant, and the commis- sion shall conduct such hearings concerning the qualification of the applicant, in accordance with its regulations, as may be necessary to determine qualification for such license OR REGISTRATION. UPON THE FILING OF AN APPLICATION FOR A NON-GAMING EMPLOYEE REGISTRATION, AND AFTER SUBMISSION OF SUCH SUPPLEMENTAL INFORMATION AS THE COMMISSION MAY REQUIRE, THE COMMISSION MAY, IN ITS DISCRETION, CONDUCT OR CAUSE TO BE CONDUCTED AN INVESTIGATION INTO THE QUALIFICATION OF SUCH APPLICANT. 2. After such investigation, the commission may either deny the appli- cation or grant a license OR REGISTRATION to an applicant whom it deter- mines to be qualified to hold such license OR REGISTRATION. THE GRANTING OF ANY SUCH LICENSE OR REGISTRATION SHALL APPLY ONLY TO THE JOB TITLE INCLUDED IN THE APPLICATION AND TO ITS ASSOCIATED DUTIES. THE COMMISSION MAY, UPON REQUEST AND AT ITS SOLE DISCRETION, ALLOW TRANSFER OF THE LICENSE OR REGISTRATION TO ANOTHER JOB TITLE UPON DETERMINATION THAT THE ORIGINAL APPLICATION WOULD HAVE BEEN SATISFACTORY HAD IT BEEN SUBMITTED FOR THE NEW TITLE. 3. The commission shall have the authority to deny any application pursuant to the provisions of this article following notice and opportu- nity for hearing. 4. When the commission grants [an application] A LICENSE OR REGISTRA- TION, the commission may limit or place such restrictions thereupon as it may deem necessary in the public interest. 5. After an application for a casino key employee license is submit- ted, final action of the commission shall be taken within ninety days after completion of all hearings and investigations and the receipt of all information required by the commission. S. 1509--A 76 A. 2009--A 6. Licenses and registrations of casino key employees and gaming AND NON-GAMING employees issued pursuant to this article shall remain valid for five years unless suspended, revoked or voided pursuant to law. Such licenses and registrations may be renewed by the holder thereof upon application, on a form prescribed by the commission, and payment of the applicable fee. Notwithstanding the [forgoing] FOREGOING, if a gaming OR NON-GAMING employee registrant has not been employed in any position within a gaming facility for a period of three years, the registration of that gaming OR NON-GAMING employee shall lapse. 7. SUBSEQUENT TO THE ISSUANCE OF A LICENSE OR REGISTRATION, THE COMMISSION MAY SUSPEND, REVOKE, OR LIMIT THE LICENSE OR REGISTRATION UPON A FINDING THAT AN APPLICANT IS NO LONGER QUALIFIED TO HOLD SUCH LICENSE OR REGISTRATION IN ACCORDANCE WITH THIS ARTICLE, OR AS IT MAY DEEM NECESSARY TO PROTECT THE PUBLIC INTEREST, FOLLOWING NOTICE AND AN OPPORTUNITY FOR A HEARING. THE COMMISSION MAY TEMPORARILY SUSPEND A LICENSE OR REGISTRATION PENDING ANY INVESTIGATION, PROSECUTION, OR HEAR- ING IF IT IS DEEMED NECESSARY TO DO SO TO PROTECT THE INTEGRITY OF GAMING ACTIVITIES. 8. The commission shall establish by regulation appropriate fees to be paid upon the filing of the required applications. Such fees shall be deposited into the commercial gaming revenue fund. § 9. Subdivision 3 of section 1326 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: 3. Vendors providing goods and services to gaming facility licensees or applicants ancillary to gaming, INCLUDING VENDORS WITH ACCESS TO THE PLAYER DATABASE OR SENSITIVE PLAYER INFORMATION, VENDORS WITH HEIGHTENED SECURITY ACCESS OR INFORMATION, AND JUNKET ENTERPRISES shall be required to be licensed as an ancillary casino vendor enterprise and shall comply with the standards for casino vendor license applicants. THE COMMISSION MAY ALSO REQUIRE ANY VENDOR REGULARLY CONDUCTING OVER TWO HUNDRED FIFTY THOUSAND DOLLARS OF BUSINESS WITH A GAMING LICENSEE OR APPLICANT WITHIN A TWELVE-MONTH PERIOD OR ONE HUNDRED THOUSAND DOLLARS OF BUSINESS WITHIN A THREE-MONTH PERIOD TO BE LICENSED AS AN ANCILLARY GAMING VENDOR. § 10. Subdivision 4 of section 1326 of the racing, pari-mutuel wager- ing and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: 4. Each casino vendor enterprise required to be licensed pursuant to subdivision one of this section, as well as its owners; management and supervisory personnel[; and employees if such employees have responsi- bility for services to a gaming facility applicant or licensee,] must qualify under the standards, except residency, established for quali- fication of a casino key employee under this article. EMPLOYEES OF SUCH VENDORS THAT HAVE RESPONSIBILITY FOR SERVICES TO A GAMING FACILITY APPLICANT OR LICENSEE MUST QUALIFY UNDER THE STANDARDS ESTABLISHED FOR QUALIFICATION OF A GAMING EMPLOYEE REGISTRATION UNDER THIS ARTICLE. EACH ANCILLARY CASINO VENDOR ENTERPRISE REQUIRED TO BE LICENSED PURSU- ANT TO SUBDIVISION THREE OF THIS SECTION, AS WELL AS ITS OWNERS; MANAGE- MENT; SUPERVISORY PERSONNEL AND EMPLOYEES THAT HAVE RESPONSIBILITY FOR SERVICES TO A GAMING FACILITY APPLICANT OR LICENSEE MUST QUALIFY UNDER THE STANDARDS ESTABLISHED FOR QUALIFICATION OF A GAMING EMPLOYEE REGIS- TRATION UNDER THIS ARTICLE. § 11. Subdivision 5 of section 1326 of the racing, pari-mutuel wager- ing and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: S. 1509--A 77 A. 2009--A 5. Any vendor that offers goods or services to a gaming facility applicant or licensee IN EXCESS OF TWENTY-FIVE THOUSAND DOLLARS WITHIN A TWELVE-MONTH PERIOD that is not included in subdivision one [or], two OR THREE of this section including, but not limited to site contractors and subcontractors, shopkeepers located within the facility, gaming schools that possess slot machines for the purpose of instruction, [and any non-supervisory employee of a junket enterprise licensed under subdivi- sion three of this section] VENDING MACHINE PROVIDERS, LINEN SUPPLIERS, GARBAGE HANDLERS, MAINTENANCE COMPANIES, LIMOUSINE SERVICES, AND FOOD PURVEYORS, shall be required to register with the commission in accord- ance with the regulations promulgated under this article. PRIOR TO CONDUCTING BUSINESS WITH ANY VENDOR NOT INCLUDED IN SUBDIVI- SION ONE OR TWO OF THIS SECTION, WHICH IS PROVIDING BUSINESS WORTH LESS THAN THE THRESHOLDS PROVIDED IN THIS SUBDIVISION, A GAMING FACILITY APPLICANT OR LICENSEE SHALL NOTIFY THE COMMISSION OF THE INTENDED TRANS- ACTION, ALONG WITH ANY HISTORY OF TRANSACTIONS WITH SUCH VENDOR, TO ALLOW FOR VERIFICATION THAT THE LICENSING REQUIREMENTS OF THIS SECTION DO NOT APPLY. ALL EMPLOYEES OF A VENDOR REGISTERED PURSUANT TO THIS SECTION THAT PROVIDE SERVICES UPON THE PREMISES OF A GAMING FACILITY ARE REQUIRED TO BE REGISTERED AS AND MEET THE STANDARDS OF A NON-GAMING EMPLOYEE. Notwithstanding the provisions aforementioned, the executive director may, consistent with the public interest and the policies of this arti- cle, direct that individual vendors registered pursuant to this subdivi- sion be required to apply for either a casino vendor enterprise license pursuant to subdivision one of this section, or an ancillary vendor industry enterprise license pursuant to subdivision three of this section, as directed by the commission. The executive director may also order that any enterprise licensed as or required to be licensed as an ancillary casino vendor enterprise pursuant to subdivision three of this section be required to apply for a casino vendor enterprise license pursuant to subdivision one of this section. The executive director may also, in his or her discretion, order that an independent software contractor not otherwise required to be registered be either registered as a vendor pursuant to this subdivision or be licensed pursuant to either subdivision one or three of this section. [Each ancillary casino vendor enterprise required to be licensed pursuant to subdivision three of this section, as well as its owners, management and supervisory personnel, and employees if such employees have responsibility for services to a gaming facility applicant or licensee, shall establish their good character, honesty and integrity by clear and convincing evidence and shall provide such financial informa- tion as may be required by the commission. Any enterprise required to be licensed as an ancillary casino vendor enterprise pursuant to this section shall be permitted to transact business with a gaming facility licensee upon filing of the appropriate vendor registration form and application for such licensure.] § 12. Subdivision 6 of section 1326 of the racing, pari-mutuel wager- ing and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: 6. Any applicant, licensee or qualifier of a casino vendor enterprise license or of an ancillary casino vendor enterprise license under subdi- vision one of this section, and any vendor registrant under subdivision five of this section shall be disqualified in accordance with the crite- ria contained in section [one thousand three] THIRTEEN hundred eighteen of this article, except that no such [ancillary casino vendor enterprise S. 1509--A 78 A. 2009--A license under subdivision three of this section or vendor registration under subdivision five of this section] APPLICANT, LICENSEE OR QUALIFIER shall be denied or revoked if such [vendor registrant] APPLICANT, LICEN- SEE OR QUALIFIER can affirmatively demonstrate rehabilitation pursuant to article twenty-three-A of the correction law. § 13. Section 1326 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 11 to read as follows: 11. NOTWITHSTANDING THE PRECEDING SUBDIVISIONS, THE EXECUTIVE DIRECTOR MAY, IN HIS OR HER DISCRETION, WAIVE ANY OF THE REQUIREMENTS OF THIS SECTION WHEN A GAMING FACILITY APPLICANT OR LICENSEE CAN DEMONSTRATE THAT THE BUSINESS RELATIONSHIP WITH ANY INDIVIDUAL VENDOR WILL BE LIMIT- ED IN SCOPE AND DURATION AND THAT THE PUBLIC INTEREST AND THE POLICIES OF THIS ARTICLE WOULD NOT BE DIMINISHED BY SUCH WAIVER. IN REQUESTING SUCH WAIVER, THE GAMING FACILITY APPLICANT OR LICENSEE SHALL PROVIDE ANY AND ALL INFORMATION NEEDED TO MAKE SUCH DETERMINATION AND ANY AND ALL INFORMATION NEEDED AS A CONDITION OF SUCH WAIVER. THE EXECUTIVE DIRECTOR MAY REVOKE ANY SUCH WAIVER AT ANY TIME UPON A DETERMINATION THAT THE CIRCUMSTANCES UPON WHICH SUCH WAIVER WAS GRANTED HAVE CHANGED. § 14. This act shall take effect immediately. PART LL 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 EIGHTEEN-TWO THOUSAND NINETEEN 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 NINETEEN-TWO THOUSAND TWENTY SCHOOL YEAR: (A) FOR PURPOSES OF THE EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWEN- TY-FIVE OF THIS CHAPTER, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT EXCEED THE TAX SAVINGS FOR THE PRIOR YEAR, AND (B) FOR PURPOSES OF THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE TAX SAVINGS APPLICABLE TO ANY PORTION 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. The tax savings attributable to the basic and enhanced exemptions shall be calculated separately. It shall be the responsibil- ity of the commissioner to calculate tax savings limitations for purposes of this subdivision. § 2. Subparagraph (G) 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: (G) "STAR tax savings" means the tax savings attributable to the STAR exemption within a portion of a school district, as determined by the commissioner pursuant to subdivision two of section thirteen hundred six-a of the real property tax law FOR PURPOSES OF THE CREDIT AUTHORIZED BY THIS SUBSECTION. S. 1509--A 79 A. 2009--A § 3. This act shall take effect immediately. PART MM Section 1. Section 1405-B of the tax law is amended by adding a new subdivision (c) to read as follows: (C) THE INFORMATION CONTAINED WITHIN INFORMATION RETURNS FILED UNDER SUBDIVISION (B) OF THIS SECTION MAY BE PROVIDED BY THE COMMISSIONER TO LOCAL ASSESSORS FOR USE IN REAL PROPERTY TAX ADMINISTRATION, AND SUCH INFORMATION SHALL NOT BE SUBJECT TO THE SECRECY PROVISIONS SET FORTH IN SECTION FOURTEEN HUNDRED EIGHTEEN OF THIS CHAPTER, PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL NOT DISCLOSE SOCIAL SECURITY NUMBERS OR EMPLOYER IDENTIFICATION NUMBERS. § 2. This act shall take effect January 1, 2020. PART NN Section 1. Paragraph 3 of subsection (e-1) of section 606 of the tax law, as added by section 2 of part K of chapter 59 of the laws of 2014, is amended as follows: (3) Determination of credit. For taxable years after two thousand thirteen [and prior to two thousand sixteen], the amount of the credit allowable under this subsection shall be determined as follows: If household gross income Excess real property The credit amount is for the taxable year is: taxes are the excess the following of real property tax percentage of excess equivalent or the property taxes: excess of qualifying real property taxes over the following percentage of household gross income: Less than $100,000 4 4.5 $100,000 to less than 5 3.0 $150,000 $150,000 to less than 6 1.5 $200,000 Notwithstanding the foregoing provisions, the maximum credit deter- mined under this subparagraph may not exceed five hundred dollars. § 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2016; provided, however, that the amendments to subsection (e-1) of section 606 of the tax law made by section one of this act shall not affect the repeal of such subsection and shall be deemed to be repealed therewith. PART OO 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 S. 1509--A 80 A. 2009--A 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. The commissioner, by regulation, shall provide that such registra- tion 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 a copy of all current manufactured home park rules and regulations. THE REPORTING OF SUCH INFORMATION TO THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBPARAGRAPH (B) OF PARAGRAPH SIX OF SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW SHALL BE DEEMED TO SATISFY THE REQUIREMENTS OF THIS PARAGRAPH. 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. Subparagraph (B) of paragraph 6 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) (I) In the case of property consisting of a mobile home that is described in paragraph (1) of subdivision two of section four hundred twenty-five of the real property tax law, the amount of the credit allowable with respect to such mobile home shall be equal to the basic STAR tax savings for the school district portion, or the enhanced STAR tax savings for the school district portion, whichever is applicable, that would be applied to a separately assessed parcel in the school district portion with a taxable assessed value equal to twenty thousand dollars multiplied by the latest state equalization rate or special equalization rate for the assessing unit in which the mobile home is located. Provided, however, that if the commissioner is in possession of information, including but not limited to assessment records, that demonstrates to the commissioner's satisfaction that the taxpayer's mobile home is worth more than twenty thousand dollars, or if the taxpayer provides the commissioner with such information, the taxpayer's S. 1509--A 81 A. 2009--A credit shall be increased accordingly, but in no case shall the credit exceed the basic STAR tax savings or enhanced STAR tax savings, whichev- er is applicable, for the school district portion. (II) THE COMMISSIONER MAY IMPLEMENT AN ELECTRONIC SYSTEM FOR THE REPORTING OF INFORMATION BY OWNERS AND OPERATORS OF MANUFACTURED HOME PARKS, AS DEFINED BY SECTION TWO HUNDRED THIRTY-THREE OF THE REAL PROP- ERTY LAW. UPON THE IMPLEMENTATION OF SUCH A SYSTEM, EACH SUCH OWNER AND OPERATOR SHALL FILE QUARTERLY ELECTRONIC STATEMENTS WITH THE COMMISSION- ER NO LATER THAN TWENTY-ONE DAYS AFTER THE END OF EACH CALENDAR QUARTER. SUCH STATEMENT SHALL REQUIRE REPORTING OF NAMES OF ALL PERSONS OWNING AN INTEREST IN THE PARK, THE SERVICES PROVIDED BY THE PARK OWNER TO THE TENANTS, THE NAMES AND ADDRESSES OF ALL TENANTS OF THE PARK, WHETHER THE TENANT LEASES OR OWNS THE HOME, AND SUCH ADDITIONAL INFORMATION AS THE COMMISSIONER MAY DEEM NECESSARY FOR THE PROPER ADMINISTRATION OF THE STAR EXEMPTION ESTABLISHED PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW AND THE STAR CREDIT AND ANY OTHER PROPERTY TAX-BASED CREDIT ESTABLISHED PURSUANT TO THIS SECTION. 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 COMMISSIONER SHALL PROVIDE THE COMMIS- SIONER OF HOUSING AND COMMUNITY RENEWAL WITH THE INFORMATION CONTAINED IN EACH QUARTERLY REPORT NO LATER THAN THIRTY DAYS AFTER THE RECEIPT THEREOF. § 3. This act shall take effect immediately. PART PP Section 1. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by section 2 of part B of chapter 59 of the laws of 2018, 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 nineteen, the application form shall indicate that all owners of the property and any owners' spouses residing on the premises must have their income eligi- bility verified annually by the department and must furnish their taxpayer identification numbers in order to facilitate matching with records of the department. The income eligibility of such persons shall be verified annually by the department, and the assessor shall not request income documentation from them. All applicants 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) EFFECTIVE WITH FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOU- SAND TWENTY, THE COMMISSIONER SHALL ALSO ANNUALLY VERIFY THE ELIGIBILITY OF SUCH PERSONS FOR THE ENHANCED EXEMPTION ON THE BASIS OF AGE AND RESI- DENCY AS WELL AS INCOME. (C) Where the commissioner finds that the enhanced exemption should be replaced with a basic exemption because [the income limitation applica- ble to the enhanced exemption has been exceeded] THE PROPERTY IS ONLY ELIGIBLE FOR A BASIC EXEMPTION, he or she shall provide the property owners with notice and an opportunity to submit to the commissioner 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] THE PROPERTY IS NOT ELIGIBLE FOR EITHER EXEMPTION, he or she shall provide the property owners with S. 1509--A 82 A. 2009--A notice and an opportunity to submit to the commissioner 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 commissioner 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)] (D) 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 department's final determination, the taxpayer may appeal that determi- nation to the state board of real property tax services in a form and manner to be prescribed by the commissioner. Such appeal shall be filed within forty-five days from the issuance of the department's final determination. If dissatisfied with the state board's determination, the taxpayer may seek judicial review thereof pursuant to article seventy- eight of the civil practice law and rules. The taxpayer shall otherwise have no right to challenge such final determination in a court action, administrative proceeding or any other form of legal recourse against the commissioner, the department, 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. § 2. Paragraph (c) of subdivision 13 of section 425 of the real prop- erty tax law, as amended by section 1 of part J of chapter 57 of the laws of 2013, is amended, and a new paragraph (f) is added to read as follows: (c) Additional consequences. A penalty tax may be imposed pursuant to this subdivision whether or not the improper exemption has been revoked in the manner provided by this section. In addition, a person or persons who are found to have made a material misstatement shall be disqualified from further exemption pursuant to this section, AND FROM THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, for a period of [five years if such misstatement appears on an application filed prior to October first, two thousand thirteen, and] six years [if such misstatement appears on an application filed there- after]. In addition, such person or persons may be subject to prose- cution pursuant to the penal law. (F) ASSESSOR NOTIFICATION. THE ASSESSOR SHALL INFORM THE COMMISSIONER WHENEVER A PERSON OR PERSONS IS FOUND TO HAVE MADE A MATERIAL MISSTATE- MENT ON AN APPLICATION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION. § 3. Paragraph (13) of subsection (eee) of section 606 of the tax law is amended by adding a new subparagraph (E) to read as follows: (E) A TAXPAYER WHO IS FOUND TO HAVE MADE A MATERIAL MISSTATEMENT ON AN APPLICATION FOR THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE DISQUALI- FIED FROM RECEIVING SUCH CREDIT FOR SIX YEARS. AS USED HEREIN, THE TERM S. 1509--A 83 A. 2009--A "MATERIAL MISSTATEMENT" SHALL HAVE THE SAME MEANING AS SET FORTH IN PARAGRAPH (A) OF SUBDIVISION THIRTEEN OF SECTION FOUR HUNDRED TWENTY- FIVE OF THE REAL PROPERTY TAX LAW. § 4. Subparagraph (E) of paragraph (10) of subsection (eee) of section 606 of the tax law, as amended by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (E) If the commissioner determines after issuing an advance payment that it was issued in an excessive amount or to an ineligible or incor- rect party, the commissioner shall be empowered to utilize any of the procedures for collection, levy and lien of personal income tax set forth in this article, any other relevant procedures referenced within the provisions of this article, and any other law as may be applicable, to recoup the improperly issued amount; PROVIDED THAT IN THE EVENT SUCH PARTY WAS DETERMINED TO BE INELIGIBLE ON THE BASIS THAT HIS OR HER PRIMARY RESIDENCE RECEIVED THE STAR EXEMPTION IN THE ASSOCIATED FISCAL YEAR, THE IMPROPERLY ISSUED CREDIT AMOUNT SHALL BE DEEMED A CLERICAL ERROR AND SHALL BE PAID UPON NOTICE AND DEMAND WITHOUT THE ISSUANCE OF A NOTICE OF DEFICIENCY AND SHALL BE ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS TAXES. § 5. This act shall take effect immediately. PART QQ Section 1. Section 425 of the real property tax law is amended by adding a new subdivision 17 to read as follows: 17. CERTAIN DISCLOSURES AUTHORIZED. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN THE COMMISSIONER HAS DETERMINED THAT THE OWNER OR OWNERS OF A PARCEL OF REAL PROPERTY ARE INELIGIBLE FOR EITHER THE STAR EXEMPTION AUTHORIZED BY THIS SECTION OR THE STAR CREDIT AUTHOR- IZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE COMMISSIONER MAY DISCLOSE THE NAMES OF SUCH OWNER OR OWNERS TO THE ASSESSOR OF THE ASSESSING UNIT IN WHICH THE PROPERTY IS LOCATED. IN ADDITION: (I) WHERE THE COMMISSIONER HAS FOUND THAT THE STAR EXEMPTION OR CREDIT COULD NOT BE GRANTED BECAUSE THE INCOME OF THE OWNER OR OWNERS IS ABOVE THE APPLICABLE LIMIT, THE COMMISSIONER MAY SO ADVISE THE ASSESSOR, BUT SHALL NOT DISCLOSE THE AMOUNT OF INCOME OF ANY SUCH OWNER OR OWNERS. (II) WHERE THE COMMISSIONER HAS FOUND THAT THE STAR EXEMPTION OR CRED- IT COULD NOT BE GRANTED BECAUSE THE PROPERTY IS NOT THE PRIMARY RESI- DENCE OF ONE OR MORE OF THE OWNERS THEREOF, OR THAT THE OWNER'S SPOUSE IS RECEIVING A STAR EXEMPTION OR STAR CREDIT ON ANOTHER RESIDENCE OR A COMPARABLE BENEFIT ON A RESIDENCE IN ANOTHER STATE, THE COMMISSIONER MAY SO ADVISE THE ASSESSOR. THE COMMISSIONER MAY FURTHER ADVISE THE ASSESSOR OF THE FACTS SUPPORTING THAT DETERMINATION, INCLUDING THE LOCATION OR LOCATIONS OF THE PROPERTY OWNER'S OTHER RESIDENCE OR RESIDENCES, IF ANY. (III) WHERE THE COMMISSIONER HAS FOUND THAT THE ENHANCED STAR EXEMPTION OR CREDIT COULD NOT BE GRANTED BECAUSE THE OWNER OR OWNERS DO NOT MEET THE APPLICABLE AGE REQUIREMENT, THE COMMISSIONER MAY SO ADVISE THE ASSESSOR, AND MAY FURTHER ADVISE THE ASSESSOR OF THEIR BIRTH DATES IF KNOWN. (IV) WHERE THE COMMISSIONER HAS FOUND THAT THE ENHANCED STAR EXEMPTION OR CREDIT COULD NOT BE GRANTED BECAUSE THE OWNER OR OWNERS FAILED TO ENROLL IN THE INCOME VERIFICATION PROGRAM OR FAILED TO SUBMIT THE INCOME WORKSHEET REQUIRED THEREUNDER, THE COMMISSIONER MAY SO ADVISE THE ASSES- SOR. S. 1509--A 84 A. 2009--A (B) INFORMATION DISCLOSED TO AN ASSESSOR PURSUANT TO THIS SUBDIVISION SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. IT SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW. § 2. Section 467 of the real property tax law is amended by adding a new subdivision 11 to read as follows: 11. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, UPON THE REQUEST OF AN ASSESSOR, THE COMMISSIONER MAY DISCLOSE TO THE ASSESSOR THE NAMES AND ADDRESSES OF THE OWNERS OF PROPERTY IN THAT ASSESSOR'S ASSESSING UNIT WHO ARE RECEIVING THE ENHANCED STAR EXEMPTION OR ENHANCED STAR CREDIT AND WHOSE FEDERAL ADJUSTED GROSS INCOME IS LESS THAN THE UPPERMOST AMOUNT SPECIFIED BY SUBPARAGRAPH THREE OF PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION (REPRESENTED THEREIN AS M + $8,400). SUCH AMOUNT SHALL BE DETERMINED WITHOUT REGARD TO ANY LOCAL OPTIONS THAT THE MUNICIPAL CORPORATION MAY OR MAY NOT HAVE EXERCISED IN RELATION TO INCREASING OR DECREASING THE MAXIMUM INCOME ELIGIBILITY LEVEL AUTHORIZED BY THIS SECTION, PROVIDED THAT THE AMOUNT SO DETERMINED FOR A CITY WITH A POPULATION OF ONE MILLION OR MORE SHALL TAKE INTO ACCOUNT THE DISTINCT MAXIMUM INCOME ELIGIBILITY LEVEL ESTABLISHED FOR SUCH CITY BY PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION. IN NO CASE SHALL THE COMMIS- SIONER DISCLOSE TO AN ASSESSOR THE AMOUNT OF AN OWNER'S FEDERAL ADJUSTED GROSS INCOME. (B) THE ASSESSOR MAY USE THE INFORMATION CONTAINED IN SUCH A REPORT TO CONTACT THOSE OWNERS WHO ARE NOT ALREADY RECEIVING THE EXEMPTION AUTHOR- IZED BY THIS SECTION AND TO SUGGEST THAT THEY CONSIDER APPLYING FOR IT. PROVIDED, HOWEVER, THAT NOTHING CONTAINED HEREIN SHALL BE CONSTRUED AS ENABLING ANY PERSON OR PERSONS TO QUALIFY FOR THE EXEMPTION AUTHORIZED BY THIS SECTION ON THE BASIS OF THEIR FEDERAL ADJUSTED GROSS INCOME, RATHER THAN ON THE BASIS OF THEIR INCOME AS DETERMINED PURSUANT TO THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION. (C) INFORMATION DISCLOSED TO AN ASSESSOR PURSUANT TO THIS SUBDIVISION SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. IT SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW. § 3. Section 1532 of the real property tax law is amended by adding a new subdivision 5 to read as follows: 5. INFORMATION REGARDING DECEDENTS PROVIDED BY THE COMMISSIONER TO A COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES PURSUANT TO SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-ONE OF THE TAX LAW SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. THE CONTENTS OF THE REPORT MAY BE SHARED WITH THE ASSESSOR AND TAX COLLECTING OFFICER OF THE MUNIC- IPAL CORPORATION IN WHICH THE DECEDENT'S FORMER RESIDENCE IS LOCATED, AND WITH THE ENFORCING OFFICER IF SUCH RESIDENCE IS SUBJECT TO DELIN- QUENT TAXES. THE INFORMATION SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW. § 4. Subsection (c) of section 651 of the tax law, as amended by chap- ter 783 of the laws of 1962, is amended to read as follows: (c) Decedents. The return for any deceased individual shall be made and filed by his executor, administrator, or other person charged with his property. If a final return of a decedent is for a fractional part of a year, the due date of such return shall be the fifteenth day of the fourth month following the close of the twelve-month period which began with the first day of such fractional part of the year. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A RETURN HAS BEEN FILED FOR A DECEDENT, THE COMMISSIONER MAY DISCLOSE THE DECEDENT'S NAME, ADDRESS, S. 1509--A 85 A. 2009--A AND THE DATE OF DEATH TO THE DIRECTOR OF REAL PROPERTY TAX SERVICES OF THE COUNTY IN WHICH THE ADDRESS REPORTED ON SUCH RETURN IS LOCATED. § 5. This act shall take effect immediately. PART RR Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real property tax law, as added by section 1 of part FF of chapter 57 of the laws of 2010, is amended to read as follows: (b-1) Income. For final assessment rolls to be used for the levy of taxes for the two thousand eleven-two thousand twelve THROUGH TWO THOU- SAND EIGHTEEN-TWO THOUSAND NINETEEN school [year and thereafter] YEARS, the parcel's affiliated income may be no greater than five hundred thou- sand dollars, as determined by the commissioner [of taxation and finance] pursuant to SUBDIVISION FOURTEEN OF THIS SECTION OR section one hundred seventy-one-u of the tax law, in order to be eligible for the basic exemption authorized by this section. BEGINNING WITH THE TWO THOU- SAND NINETEEN-TWO THOUSAND TWENTY SCHOOL YEAR, FOR PURPOSES OF THE EXEMPTION AUTHORIZED BY THIS SECTION, THE PARCEL'S AFFILIATED INCOME MAY BE NO GREATER THAN TWO HUNDRED FIFTY THOUSAND DOLLARS, AS SO DETERMINED. 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' spouses resid- ing primarily thereon. For exemptions on final assessment rolls to be used for the levy of taxes for the two thousand eleven-two thousand 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. § 2. Subparagraph (A) of paragraph 3 of subsection (eee) of section 606 of the tax law, as added by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (A) Beginning with taxable years after two thousand fifteen, a basic STAR credit shall be available to a qualified taxpayer if the affiliated income of the parcel that serves as the taxpayer's primary residence is less than or equal to five hundred thousand dollars. THE INCOME LIMIT ESTABLISHED FOR THE BASIC STAR EXEMPTION BY PARAGRAPH (B-1) OF SUBDIVI- SION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW SHALL NOT BE TAKEN INTO ACCOUNT WHEN DETERMINING ELIGIBILITY FOR THE BASIC STAR CREDIT. § 3. This act shall take effect immediately. PART SS Section 1. Subdivision 6 of section 1306-a of the real property tax law, as amended by section 3 of part TT of chapter 59 of the laws of 2017, is amended to read as follows: 6. When the commissioner determines, at least twenty days prior to the levy of school district taxes, that an advance credit of the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law will be provided to the owners of a parcel in that school district, he or she shall so notify the assessor, the county director of real property tax services, and the authorities of the school district, who shall cause a statement to be placed on the tax bill for the parcel in substantially the following form: "An estimated S. 1509--A 86 A. 2009--A STAR check HAS BEEN OR will be mailed to you [upon issuance] by the NYS Tax Department. Any overpayment or underpayment can be reconciled on your next tax return or STAR credit check." Notwithstanding any provision of law to the contrary, in the event that the parcel in question had been granted a STAR exemption on the assessment roll upon which school district taxes are to be levied, such exemption shall be deemed null and void, shall be removed from the assessment roll, and shall be disregarded when the parcel's tax liabil- ity is determined. The assessor or other local official or officials having custody and control of the data file used to generate school district tax rolls and tax bills shall be authorized and directed to change such file as necessary to enable the school district authorities to discharge the duties imposed upon them by this subdivision. § 2. This act shall take effect immediately. PART TT Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real property tax law, as added by section 1 of part D of chapter 60 of the laws of 2016, is amended to read as follows: (a-2) Notwithstanding any provision of law to the contrary, where [a renewal] AN application for the "enhanced" STAR exemption authorized by subdivision four of this section has not been filed on or before the taxable status date, and the owner believes that good cause existed for the failure to file the [renewal] application by that date, the owner may, no later than the last day for paying school taxes without incur- ring interest or penalty, submit a written request to the commissioner asking him or her to extend the filing deadline and grant the exemption. Such request shall contain an explanation of why the deadline was missed, and shall be accompanied by [a renewal] AN application, reflect- ing the facts and circumstances as they existed on the taxable status date. After consulting with the assessor, the commissioner may extend the filing deadline and grant the exemption if the commissioner is satisfied that (i) good cause existed for the failure to file the [renewal] application by the taxable status date, and that (ii) the applicant is otherwise entitled to the exemption. The commissioner shall mail notice of his or her determination to such owner and the assessor. If the determination states that the commissioner has granted the exemption, the assessor shall thereupon be authorized and directed to correct the assessment roll accordingly, or, if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. If the correction is not made before school taxes are levied, the [failure to take the exemption into account in the computation of the tax shall be deemed a "clerical error" for purposes of title three of article five of this chapter, and shall be corrected accordingly] SCHOOL DISTRICT AUTHORITIES SHALL BE AUTHORIZED AND DIRECTED TO TAKE ACCOUNT OF THE FACT THAT THE COMMISSIONER HAS GRANTED THE EXEMPTION BY CORRECTING THE APPLICANT'S TAX BILL AND/OR ISSUING A REFUND ACCORDINGLY. § 2. Paragraph (d) of subdivision 2 of section 496 of the real proper- ty tax law, as added by section 3 of part A of chapter 60 of the laws of 2016, is amended to read as follows: (d) If the applicant is renouncing a STAR exemption in order to quali- fy for the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law, and no other exemptions are being renounced on the same application, OR IF THE APPLICANT IS RENOUNC- S. 1509--A 87 A. 2009--A ING A STAR EXEMPTION BEFORE SCHOOL TAXES HAVE BEEN LEVIED ON THE ASSESS- MENT ROLL UPON WHICH THAT EXEMPTION APPEARS, no processing fee shall be applicable. § 3. Paragraph (a) of subdivision 2 of section 496 of the real proper- ty tax law, as amended by section 3 of part A of chapter 60 of the laws of 2016, is amended to read as follows: (a) For each assessment roll on which the renounced exemption appears, the assessed value that was exempted shall be multiplied by the tax rate or rates that were applied to that assessment roll, OR IN THE CASE OF A RENOUNCED STAR EXEMPTION, THE TAX SAVINGS CALCULATED PURSUANT TO SUBDI- VISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER. Interest shall then be added to each such product at the rate prescribed by section nine hundred twenty-four-a of this chapter or such other law as may be applicable for each month or portion thereon since the levy of taxes upon such assessment roll. § 4. Paragraph 5 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: (5) Disqualification. A taxpayer shall not qualify for the credit authorized by this subsection if the parcel that serves as the taxpay- er's primary residence received the STAR exemption on the assessment roll upon which school district taxes for the associated fiscal year [where] WERE levied. Provided, however, that the taxpayer may remove this disqualification by renouncing the exemption [and making any required payments] by December thirty-first of the taxable year, as provided by subdivision sixteen of section four hundred twenty-five of the real property tax law, AND MAKING ANY REQUIRED PAYMENTS WITHIN THE TIME FRAME PRESCRIBED BY SECTION FOUR HUNDRED NINETY-SIX OF THE REAL PROPERTY TAX LAW. § 5. This act shall take effect immediately. PART UU Section 1. The article heading of article 13-F of the public health law, as amended by chapter 448 of the laws of 2012, is amended to read as follows: REGULATION OF TOBACCO PRODUCTS, VAPOR PRODUCTS, ELECTRONIC CIGARETTES, HERBAL CIGARETTES AND SMOKING PARAPHERNALIA; DISTRIBUTION TO [MINORS] PERSONS UNDER THE AGE OF TWENTY-ONE § 2. Subdivisions 1 and 4 of section 1399-aa of the public health law, subdivision 1 as amended by chapter 13 of the laws of 2003, and subdivi- sion 4 as added by chapter 799 of the laws of 1992, are amended and six new subdivisions 14, 15, 16, 17, 18 and 19 are added to read as follows: 1. "Enforcement officer" means the enforcement officer designated pursuant to article thirteen-E of this chapter to enforce such article and hold hearings pursuant thereto; provided that in a city with a popu- lation of more than one million it shall also mean an officer or employ- ee or any agency of such city that is authorized to enforce any local law of such city related to the regulation of the sale of tobacco products to [minors] PERSONS UNDER THE AGE OF TWENTY-ONE. 4. "Private club" means an organization with no more than an insignif- icant portion of its membership comprised of people under the age of [eighteen] TWENTY-ONE years that regularly receives dues and/or payments from its members for the use of space, facilities and services. S. 1509--A 88 A. 2009--A 14. "PRICE REDUCTION INSTRUMENT" MEANS ANY COUPON, VOUCHER, REBATE, CARD, PAPER, NOTE, FORM, STATEMENT, TICKET, IMAGE, OR OTHER ISSUE, WHETHER IN PAPER, DIGITAL, OR ANY OTHER FORM, USED FOR COMMERCIAL PURPOSES TO RECEIVE AN ARTICLE, PRODUCT, SERVICE, OR ACCOMMODATION WITH- OUT CHARGE OR AT A DISCOUNTED PRICE. 15. "DEALER" MEANS A DEALER, AS DEFINED IN SECTION FOUR HUNDRED SEVEN- TY OF THE TAX LAW OR A VAPOR PRODUCTS DEALER AS DEFINED IN SECTION ELEV- EN HUNDRED EIGHTY OF THE TAX LAW. 16. "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO A FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR, ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL DEVICE, OR MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF ARTI- CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW. 17. "TOBACCO AND VAPOR PRODUCTS MENU" MEANS A BOOKLET, PAMPHLET, OR OTHER LISTING OF TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, AND ELECTRONIC CIGARETTES OFFERED FOR SALE BY THE DEALER AND THE PRICE OF SUCH PRODUCTS. THE TOBACCO AND VAPOR PRODUCTS MENU MAY CONTAIN PICTURES OF AND ADVERTISEMENTS FOR TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS AND ELECTRONIC CIGARETTES. 18. "MENU COVER PAGE" MEANS THE FRONT COVER OF A TOBACCO AND VAPOR PRODUCTS MENU OR, IF THERE IS NO FRONT COVER, THE FIRST PAGE OF A TOBAC- CO AND VAPOR PRODUCTS MENU. 19. "CHARACTERIZING FLAVOR" MEANS A DISTINGUISHABLE TASTE OR AROMA, OTHER THAN THE TASTE OR AROMA OF TOBACCO OR MENTHOL, IMPARTED EITHER PRIOR TO OR DURING CONSUMPTION OF A TOBACCO PRODUCT, ELECTRONIC CIGA- RETTES AND VAPOR PRODUCTS OR COMPONENT THEREOF, INCLUDING, BUT NOT LIMITED TO, TASTES OR AROMAS RELATING TO ANY FRUIT, CHOCOLATE, VANILLA, HONEY, CANDY, COCOA, DESSERT, ALCOHOLIC BEVERAGE, HERB OR SPICE. § 3. Section 1399-bb of the public health law, as amended by chapter 508 of the laws of 2000, the section heading and subdivisions 4 and 5 as amended by chapter 4 of the laws of 2018 and subdivision 2 as amended by chapter 13 of the laws of 2003, is amended to read as follows: § 1399-bb. Distribution of tobacco products, VAPOR PRODUCTS, electron- ic cigarettes or herbal cigarettes without charge. 1. No person engaged in the business of selling or otherwise distributing tobacco products, VAPOR PRODUCTS, ELECTRONIC CIGARETTES or herbal cigarettes for commer- cial purposes, or any agent or employee of such person, shall knowingly, in furtherance of such business: (a) distribute without charge any tobacco products or herbal ciga- rettes to any individual, provided that the distribution of a package containing tobacco products or herbal cigarettes in violation of this subdivision shall constitute a single violation without regard to the number of items in the package; or (b) distribute [coupons] PRICE REDUCTION INSTRUMENTS which are redeem- able for tobacco products [or], herbal cigarettes, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES to any individual, provided that this subdivision shall not apply to coupons contained in newspapers, magazines or other types of publications, coupons obtained through the purchase of tobacco products [or], herbal cigarettes, VAPOR PRODUCTS, OR ELECTRONIC CIGA- RETTES or obtained at locations which sell tobacco products [or], herbal cigarettes, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES provided that such distribution is confined to a designated area or to coupons sent through the mail. S. 1509--A 89 A. 2009--A 1-A. NO PERSON ENGAGED IN THE BUSINESS OF SELLING OR OTHERWISE DISTRIBUTING TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES FOR COMMERCIAL PURPOSES, OR ANY AGENT OR EMPLOYEE OF SUCH PERSON, SHALL KNOWINGLY, IN FURTHERANCE OF SUCH BUSINESS: (A) HONOR OR ACCEPT A PRICE REDUCTION INSTRUMENT IN ANY TRANSACTION RELATED TO THE SALE OF TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUMER; (B) SELL OR OFFER FOR SALE TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUMER THROUGH ANY MULTI-PACK- AGE DISCOUNT OR OTHERWISE PROVIDE TO A CONSUMER ANY TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, ELECTRONIC CIGARETTES FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR THE PURCHASE OF ANY OTHER TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES BY THE CONSUMER; (C) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE ANY PRODUCT OTHER THAN TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGA- RETTES TO A CONSUMER FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR THE PURCHASE OF TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES BY THE CONSUMER; OR (D) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUM- ER FOR LESS THAN THE LISTED PRICE. 2. The prohibitions contained in subdivision one of this section shall not apply to the following locations: (a) private social functions when seating arrangements are under the control of the sponsor of the function and not the owner, operator, manager or person in charge of such indoor area; (b) conventions and trade shows; provided that the distribution is confined to designated areas generally accessible only to persons over the age of [eighteen] TWENTY-ONE; (c) events sponsored by tobacco [or], herbal cigarette, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTE manufacturers provided that the distribution is confined to designated areas generally accessible only to persons over the age of [eighteen] TWENTY-ONE; (d) bars as defined in subdivision one of section thirteen hundred ninety-nine-n of this chapter; (e) tobacco businesses as defined in subdivision eight of section thirteen hundred ninety-nine-aa of this article; (f) factories as defined in subdivision nine of section thirteen hundred ninety-nine-aa of this article and construction sites; provided that the distribution is confined to designated areas generally accessi- ble only to persons over the age of [eighteen] TWENTY-ONE. 3. No person shall distribute tobacco products [or], herbal cigarettes, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES at the locations set forth in paragraphs (b), (c) and (f) of subdivision two of this section unless such person gives five days written notice to the enforcement officer. 4. No person engaged in the business of selling or otherwise distrib- uting VAPOR PRODUCTS OR electronic cigarettes for commercial purposes, or any agent or employee of such person, shall knowingly, in furtherance of such business, distribute without charge any VAPOR PRODUCTS OR elec- tronic cigarettes to any individual under [eighteen] TWENTY-ONE years of age. 5. The distribution of tobacco products or herbal cigarettes pursuant to subdivision two of this section or the distribution without charge of VAPOR PRODUCTS OR electronic cigarettes shall be made only to an indi- S. 1509--A 90 A. 2009--A vidual who demonstrates, through (A) a driver's license or [other photo- graphic] NON-DRIVER'S identification card issued by [a government entity or educational institution] THE COMMISSIONER OF MOTOR VEHICLES, THE FEDERAL GOVERNMENT, ANY UNITED STATES TERRITORY, COMMONWEALTH OR POSSESSION, THE DISTRICT OF COLUMBIA, A STATE GOVERNMENT WITHIN THE UNITED STATES OR A PROVINCIAL GOVERNMENT OF THE DOMINION OF CANADA, OR (B) A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR ANY OTHER COUNTRY, OR (C) AN IDENTIFICATION CARD ISSUED BY THE ARMED FORCES OF THE UNITED STATES, indicating that the individual is at least [eighteen] TWENTY-ONE years of age. Such identification need not be required of any individual who reasonably appears to be at least [twenty-five] THIRTY years of age; provided, however, that such appearance shall not consti- tute a defense in any proceeding alleging the sale of a tobacco product, VAPOR PRODUCT, electronic cigarette or herbal cigarette or the distrib- ution without charge of VAPOR PRODUCTS OR electronic cigarettes to an individual UNDER TWENTY-ONE YEARS OF AGE. § 4. The opening paragraph of section 1399-cc of the public health law, as amended by chapter 542 of the laws of 2014, is amended to read as follows: Sale of tobacco products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, ELECTRONIC CIGARETTES, shisha, rolling papers or smoking paraphernalia to [minors] PERSONS UNDER THE AGE OF TWENTY-ONE IS prohib- ited. § 5. Paragraph (e) of subdivision 1 of section 1399-cc of the public health law is REPEALED. § 6. Subdivisions 2, 3, 4 and 7 of section 1399-cc of the public health law, as amended by chapter 542 of the laws of 2014, are amended to read as follows: 2. Any person operating a place of business wherein tobacco products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electron- ic cigarettes, are sold or offered for sale is prohibited from selling such products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha, electronic cigarettes or smoking paraphernalia to individuals under [eighteen] TWENTY-ONE years of age, and shall post in a conspicu- ous place a sign upon which there shall be imprinted the following statement, "SALE OF CIGARETTES, CIGARS, CHEWING TOBACCO, POWDERED TOBAC- CO, SHISHA OR OTHER TOBACCO PRODUCTS, HERBAL CIGARETTES, [LIQUID NICO- TINE] VAPOR PRODUCTS, ELECTRONIC CIGARETTES, ROLLING PAPERS OR SMOKING PARAPHERNALIA, TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS OF AGE IS PROHIBITED BY LAW." Such sign shall be printed on a white card in red letters at least one-half inch in height. 3. Sale of tobacco products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic cigarettes in such places, other than by a vending machine, shall be made only to an individual who demonstrates, through (a) a valid driver's license or non-driver's iden- tification card issued by the commissioner of motor vehicles, the feder- al government, any United States territory, commonwealth or possession, the District of Columbia, a state government within the United States or a provincial government of the dominion of Canada, or (b) a valid pass- port issued by the United States government or any other country, or (c) an identification card issued by the armed forces of the United States, indicating that the individual is at least [eighteen] TWENTY-ONE years of age. Such identification need not be required of any individual who reasonably appears to be at least [twenty-five] THIRTY years of age, provided, however, that such appearance shall not constitute a defense in any proceeding alleging the sale of a tobacco product, herbal ciga- S. 1509--A 91 A. 2009--A rettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic ciga- rettes to an individual under [eighteen] TWENTY-ONE years of age. 4. (a) Any person operating a place of business wherein tobacco products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic cigarettes are sold or offered for sale may perform a trans- action scan as a precondition for such purchases. (b) In any instance where the information deciphered by the trans- action scan fails to match the information printed on the driver's license or non-driver identification card, or if the transaction scan indicates that the information is false or fraudulent, the attempted transaction shall be denied. (c) In any proceeding pursuant to section thirteen hundred ninety- nine-ee of this article, it shall be an affirmative defense that such person had produced a driver's license or non-driver identification card apparently issued by a governmental entity, successfully completed that transaction scan, and that the tobacco product, herbal cigarettes or [liquid nicotine] VAPOR PRODUCTS had been sold, delivered or given to such person in reasonable reliance upon such identification and trans- action scan. In evaluating the applicability of such affirmative defense the commissioner shall take into consideration any written policy adopted and implemented by the seller to effectuate the provisions of this chapter. Use of a transaction scan shall not excuse any person operating a place of business wherein tobacco products, herbal ciga- rettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic ciga- rettes are sold, or the agent or employee of such person, from the exer- cise of reasonable diligence otherwise required by this chapter. Notwithstanding the above provisions, any such affirmative defense shall not be applicable in any civil or criminal proceeding, or in any other forum. 7. (A) No person operating a place of business wherein tobacco products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic cigarettes are sold or offered for sale shall sell, permit to be sold, offer for sale or display for sale any tobacco product, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic ciga- rettes in any manner, unless such products and cigarettes are stored for sale [(a)] (I) behind a counter in an area accessible only to the personnel of such business, or [(b)] (II) in a locked container; provided, however, such restriction shall not apply to tobacco busi- nesses, as defined in subdivision eight of section thirteen hundred ninety-nine-aa of this article, and to places to which admission is restricted to persons [eighteen] TWENTY-ONE years of age or older. (B) IN ADDITION TO THE REQUIREMENTS SET FORTH IN PARAGRAPH (A) OF THIS SUBDIVISION, NO DEALER SHALL PERMIT THE DISPLAY OF ANY TOBACCO PRODUCT, HERBAL CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC CIGARETTE IN A MANNER THAT PERMITS A CONSUMER TO VIEW ANY SUCH ITEM PRIOR TO PURCHASE. EXCEPT AS PROVIDED FOR IN PARAGRAPH (C) OF THIS SUBDIVISION IS NOT VIOLATED IF: (I) AT THE DIRECT REQUEST OF A CUSTOMER AT LEAST TWENTY-ONE YEARS OF AGE, SUCH A CUSTOMER HANDLES THE ITEM, PACKAGED OR OTHERWISE, TO INSPECT THE PRODUCT PRIOR TO PURCHASE; OR (II) SUCH ITEMS ARE TEMPORARILY VISIBLE DURING RESTOCKING, THE SALE OF SUCH ITEMS, OR THE CARRIAGE OF SUCH ITEMS INTO OR OUT OF THE PREMISES. (C) NO DEALER SHALL DISPLAY OR PERMIT THE DISPLAY OF ANY TOBACCO PROD- UCT, HERBAL CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC CIGARETTE FOR ANY LONGER THAN NECESSARY TO COMPLETE THE PURPOSES IDENTIFIED IN SUBPARA- GRAPHS (I) AND (II) OF PARAGRAPH (B) OF THIS SUBDIVISION. S. 1509--A 92 A. 2009--A (D) NO DEALER SHALL STORE ANY TOBACCO AND VAPOR PRODUCTS MENU IN A LOCATION WHERE IT IS VISIBLE TO CUSTOMERS OR ACCESSIBLE TO CUSTOMERS WITHOUT THE ASSISTANCE OF THE DEALER. THE MENU SHALL ALSO CONTAIN MENU COVER PAGE THAT SHALL PREVENT THE INADVERTENT VIEWING OF PROMOTIONAL OR OTHER MATERIAL CONTAINED WITHIN THE TOBACCO AND VAPOR PRODUCTS MENU. (E) NO DEALER SHALL PROVIDE ANY TOBACCO AND VAPOR PRODUCTS MENU OR ANY TOBACCO PRODUCT, HERBAL CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC CIGA- RETTE TO ANY INDIVIDUAL WHO HAS NOT DEMONSTRATED, THROUGH IDENTIFICATION WHICH MEETS THE REQUIREMENTS OF SUBDIVISION THREE OF THIS SECTION, THAT THE INDIVIDUAL IS AT LEAST TWENTY-ONE YEARS OF AGE. SUCH IDENTIFICATION NEED NOT BE REQUIRED OF ANY INDIVIDUAL WHO REASONABLY APPEARS TO BE OVER THE AGE OF THIRTY, PROVIDED, HOWEVER, THAT SUCH APPEARANCE SHALL NOT CONSTITUTE A DEFENSE IN ANY PROCEEDING ALLEGING THE SALE OF SUCH ITEM TO AN INDIVIDUAL UNDER TWENTY-ONE YEARS OF AGE. IT SHALL BE AN AFFIRMATIVE DEFENSE TO A VIOLATION OF THIS PARAGRAPH THAT THE DEALER SUCCESSFULLY PERFORMED A TRANSACTION SCAN OF AN INDIVIDUAL'S IDENTIFICATION AND THAT A TOBACCO AND VAPOR PRODUCTS MENU, TOBACCO PRODUCT, HERBAL CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC CIGARETTE WAS PROVIDED TO SUCH INDIVIDUAL IN REASONABLE RELIANCE UPON SUCH IDENTIFICATION AND TRANSACTION SCAN. (F) AFTER A CUSTOMER HAS COMPLETED VIEWING A TOBACCO AND VAPOR PRODUCTS MENU, THE DEALER SHALL IMMEDIATELY RETURN THE TOBACCO AND VAPOR PRODUCTS MENU TO ITS STORAGE LOCATION. (G) UNLESS REQUIRED OTHERWISE BY REGULATION OF THE DEPARTMENT, THE MENU COVER PAGE OF THE TOBACCO AND VAPOR PRODUCTS MENU SHALL BE BLANK OR CONTAIN ONLY THE WORDS "TOBACCO AND VAPOR PRODUCTS MENU" AND SHALL NOT CONTAIN ANY ADVERTISING OR OTHER PROMOTIONAL MATERIAL. (H) THE COMMISSIONER MAY ISSUE RULES AND REGULATIONS GOVERNING THE USE OF THE TOBACCO AND VAPOR PRODUCTS MENU AND MENU COVER PAGE. (I) PARAGRAPHS (A) THROUGH (G) OF THIS SUBDIVISION SHALL NOT APPLY TO A PLACE OF BUSINESS TO WHICH ADMISSION IS RESTRICTED SOLELY TO PERSONS TWENTY-ONE YEARS OF AGE OR OLDER. (J) NOTHING HEREIN SHALL BE CONSTRUED TO RESTRICT THE AUTHORITY OF ANY COUNTY, CITY, TOWN, OR VILLAGE TO ENACT, ADOPT, PROMULGATE AND ENFORCE ADDITIONAL LOCAL LAWS, ORDINANCES, REGULATIONS OR OTHER MEASURES WHICH ARE IN ADDITION TO OR MORE STRINGENT THAN EITHER OF THE PROVISIONS OF THIS ARTICLE. § 7. Section 1399-dd of the public health law, as amended by chapter 448 of the laws of 2012, is amended to read as follows: § 1399-dd. Sale of tobacco products, herbal cigarettes, VAPOR PRODUCTS, or electronic cigarettes in vending machines. No person, firm, partnership, company or corporation shall operate a vending machine which dispenses tobacco products, herbal cigarettes, VAPOR PRODUCTS, or electronic cigarettes unless such machine is located: (a) in a bar as defined in subdivision one of section thirteen hundred ninety-nine-n of this chapter, or the bar area of a food service establishment with a valid, on-premises full liquor license; (b) in a private club; (c) in a tobacco business as defined in subdivision eight of section thirteen hundred ninety-nine-aa of this article; or (d) in a place of employment which has an insignificant portion of its regular workforce comprised of people under the age of [eighteen] TWENTY-ONE years and only in such locations that are not accessible to the general public; provided, however, that in such locations the vending machine is located in plain view and under the direct supervision and control of the person in charge of the location or his or her designated agent or employee. § 8. Section 1399-ee of the public health law, as amended by chapter 162 of the laws of 2002, is amended to read as follows: S. 1509--A 93 A. 2009--A § 1399-ee. Hearings; penalties. 1. Hearings with respect to violation of this article shall be conducted in the same manner as hearings conducted under article thirteen-E of this chapter. 2. If the enforcement officer determines after a hearing that a violation of this article has occurred, he or she shall impose a civil penalty of a minimum of three hundred dollars, but not to exceed one thousand dollars for a first violation, and a minimum of five hundred dollars, but not to exceed one thousand five hundred dollars for each subsequent violation, unless a different penalty is otherwise provided in this article. The enforcement officer shall advise the [retail] deal- er that upon the accumulation of three or more points pursuant to this section the [department] COMMISSIONER of taxation and finance shall suspend the dealer's registration. If the enforcement officer determines after a hearing that a [retail] dealer was selling tobacco products, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES while their registration was suspended or permanently revoked pursuant to subdivision three or four of this section, he or she shall impose a civil penalty of twenty-five hundred dollars. 3. (a) Imposition of points. If the enforcement officer determines, after a hearing, that the [retail] dealer violated subdivision [one] TWO of section thirteen hundred ninety-nine-cc of this article with respect to a prohibited sale to a [minor] PERSON UNDER THE AGE OF TWENTY-ONE, he or she shall, in addition to imposing any other penalty required or permitted pursuant to this section, assign two points to the [retail] dealer's record where the individual who committed the violation did not hold a certificate of completion from a state certified tobacco sales training program and one point where the [retail] dealer demonstrates that the person who committed the violation held a certificate of completion from a state certified tobacco sales training program. (b) Revocation. If the enforcement officer determines, after a hear- ing, that a [retail] dealer has violated this article four times within a three year time frame he or she shall, in addition to imposing any other penalty required or permitted by this section, direct the commis- sioner of taxation and finance to revoke the dealer's registration for one year. (c) Duration of points. Points assigned to a [retail] dealer's record shall be assessed for a period of thirty-six months beginning on the first day of the month following the assignment of points. (d) Reinspection. Any [retail] dealer who is assigned points pursuant to paragraph (a) of this subdivision shall be reinspected at least two times a year by the enforcement officer until points assessed are removed from the [retail] dealer's record. (e) Suspension. If the department determines that a [retail] dealer has accumulated three points or more, the department shall direct the commissioner of taxation and finance to suspend such dealer's registra- tion for six months. The three points serving as the basis for a suspen- sion shall be erased upon the completion of the six month penalty. (f) Surcharge. A fifty dollar surcharge to be assessed for every violation will be made available to enforcement officers and shall be used solely for compliance checks to be conducted to determine compli- ance with this section. 4. (a) If the enforcement officer determines, after a hearing, that a [retail] dealer has violated this article while their registration was suspended pursuant to subdivision three of this section, he or she shall, in addition to imposing any other penalty required or permitted by this section, direct the commissioner of taxation and finance to S. 1509--A 94 A. 2009--A permanently revoke the dealer's registration and not permit the dealer to obtain a new registration. (b) If the enforcement officer determines, after a hearing, that a vending machine operator has violated this article three times within a two year period, or four or more times cumulatively he or she shall, in addition to imposing any other penalty required or permitted by this section, direct the commissioner of taxation and finance to suspend the vendor's registration for one year and not permit the vendor to obtain a new registration for such period. 5. The department shall publish a notification of the name and address of any [retailer] DEALER violating the provisions of this section and indicate the number of times the dealer has violated the provisions of this section. The notification shall be published in a newspaper of general circulation in the locality in which the [retailer] DEALER is located. 6. (a) In any proceeding pursuant to subdivision three of this section to assign points to a [retail] dealer's record, the [retail] dealer shall be assigned one point instead of two points where the [retail] dealer demonstrates that the person who committed the violation of section thirteen hundred ninety-nine-cc of this article held a valid certificate of completion from a state certified tobacco sales training program. (b) A state certified tobacco sales training program shall include instruction in the following elements: (1) the health effects of tobacco use, especially at a young age; (2) the legal purchase age and the additional requirements of section thirteen hundred ninety-nine-cc of this article; (3) legal forms of identification and the key features thereof; (4) reliance upon legal forms of identification and the right to refuse sales when acting in good faith; (5) means of identifying fraudulent identification of attempted under- age purchasers; (6) techniques used to refuse a sale; (7) the penalties arising out of unlawful sales to underage individ- uals; and (8) the significant disciplinary action or loss of employment that may be imposed by the [retail] dealer for a violation of the law or a devi- ation from the policies of the [retail] dealer in respect to compliance with such law. (c) A tobacco sales training program may be given and administered by a [retail] dealer duly registered under section four hundred eighty-a of the tax law which operates five or more registered locations, by a trade association whose members are registered as [retail] dealers, by national and regional franchisors who have granted at least five fran- chises in the state to persons who are registered as such [retail] deal- ers by a cooperative corporation with five or more members who are registered as [retail] dealers and are operating in this state, and by a wholesaler supplying fifty or more [retail] dealers. A person or entity administering such training program shall issue certificates of completion to persons successfully completing such a training program. Such certificates shall be prima facie evidence of the completion of such a training program by the person named therein. (d) A certificate of completion may be issued for a period of three years, however such certificate shall be invalidated by a change in employment. S. 1509--A 95 A. 2009--A (e) Entities authorized pursuant to paragraph (c) of this subdivision to give and administer a tobacco sales training program may submit a proposed curriculum, a facsimile of any training aids and materials, and a list of training locations to the department for review. Training aids may include the use of video, computer based instruction, printed mate- rials and other formats deemed acceptable to the department. The depart- ment shall certify programs which provide instruction in the elements set forth in paragraph (b) of this subdivision in a clear and meaningful fashion. Programs approved by the department shall be certified for a period of three years at which time an entity may reapply for certif- ication. A non-refundable fee in the amount of three hundred dollars shall be paid to the department with each application. § 9. Section 1399-hh of the public health law, as added by chapter 433 of the laws of 1997, is amended to read as follows: § 1399-hh. Tobacco VAPOR PRODUCT AND ELECTRONIC CIGARETTE enforcement. The commissioner shall develop, plan and implement a comprehensive program to reduce the prevalence of tobacco VAPOR PRODUCT AND ELECTRONIC CIGARETTE use, particularly among persons less than [eighteen] TWENTY- ONE years of age. This program shall include, but not be limited to, support for enforcement of article thirteen-F of this chapter. 1. An enforcement officer, as defined in section thirteen hundred ninety-nine-t of this chapter, may annually, on such dates as shall be fixed by the commissioner, submit an application for such monies as are made available for such purpose. Such application shall be in such form as prescribed by the commissioner and shall include, but not be limited to, plans regarding random spot checks, including the number and types of compliance checks that will be conducted, and other activities to determine compliance with this article. Each such plan shall include an agreement to report to the commissioner: the names and addresses of [tobacco retailers and vendors] DEALERS determined to be unlicensed, if any; the number of complaints filed against licensed [tobacco retail outlets] DEALERS; and the names of [tobacco retailers and vendors] DEAL- ERS who have paid fines, or have been otherwise penalized, due to enforcement actions. 2. The commissioner shall distribute such monies as are made avail- able for such purpose to enforcement officers and, in so doing, consider the number of retail locations registered to sell tobacco products with- in the jurisdiction of the enforcement officer and the level of proposed activities. 3. Monies made available to enforcement officers pursuant to this section shall only be used for local tobacco, HERBAL CIGARETTE, VAPOR PRODUCTS AND ELECTRONIC CIGARETTE enforcement activities approved by the commissioner. § 10. Paragraph (b) of subdivision 2 of section 1399-ll of the public health law, as added by chapter 518 of the laws of 2000, is amended to read as follows: (b) Any person operating a tobacco business wherein bidis is sold or offered for sale is prohibited from selling such bidis to individuals under [eighteen] TWENTY-ONE years of age, and shall post in a conspicu- ous place a sign upon which there shall be imprinted the following statement, "SALE OF BIDIS TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS OF AGE IS PROHIBITED BY LAW." Such sign shall be printed on a white card in red letters at least one-half inch in height. § 11. Subdivision 1 and paragraph (b) of subdivision 2 of section 1399-mm of the public health law, as added by chapter 549 of the laws of 2003, are amended to read as follows: S. 1509--A 96 A. 2009--A 1. No person shall knowingly sell or provide gutka to any other person under [eighteen] TWENTY-ONE years of age. No other provision of law authorizing the sale of tobacco products, other than subdivision two of this section, shall authorize the sale of gutka. Any person who violates the provisions of this subdivision shall be subject to a civil penalty of not more than five hundred dollars. (b) Any person operating a tobacco business wherein gutka is sold or offered for sale is prohibited from selling such gutka to individuals under [eighteen] TWENTY-ONE years of age, and shall post in a conspicu- ous place a sign upon which there shall be imprinted the following statement, "SALE OF GUTKA TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS OF AGE IS PROHIBITED BY LAW." Such sign shall be printed on a white card in red letters at least one-half inch in height. § 12. The public health law is amended by adding a new section 1399-mm-1 to read as follows: § 1399-MM-1. SALE IN PHARMACIES. NO TOBACCO PRODUCTS, HERBAL CIGA- RETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES SHALL BE SOLD IN A PHARMACY OR IN A RETAIL ESTABLISHMENT THAT CONTAINS A PHARMACY OPERATED AS A DEPARTMENT AS DEFINED IN PARAGRAPH F OF SUBDIVISION TWO OF SECTION SIXTY-EIGHT HUNDRED EIGHT OF THE EDUCATION LAW. § 13. The public health law is amended by adding a new section 1399-mm-2 to read as follows: § 1399-MM-2. ELECTRONIC CIGARETTE AND VAPOR PRODUCTS; CHARACTERIZING FLAVORS. THE COMMISSIONER IS AUTHORIZED TO PROMULGATE REGULATIONS GOVERNING THE SALE AND DISTRIBUTION OF ELECTRONIC CIGARETTES OR VAPOR PRODUCTS. SUCH REGULATIONS MAY, TO THE EXTENT DEEMED NECESSARY FOR THE PROTECTION OF PUBLIC HEALTH, PROHIBIT OR RESTRICT: (I) THE SELLING, OFFERING FOR SALE, POSSESSING WITH INTENT TO SELL OR OFFERING FOR SALE, OR DISTRIBUTING OF REFILLS, CARTRIDGES, OR OTHER COMPONENTS OF ELECTRON- IC CIGARETTES OR VAPOR PRODUCTS THAT IMPARTS A CHARACTERIZING FLAVOR; OR (II) THE USE OF TRADEMARKS, NAMES OR DESCRIPTIONS OF CHARACTERIZING FLAVORS THAT ARE CLEARLY INTENDED TO APPEAL TO MINORS. § 14. Paragraph n of subdivision 1 of section 1399-o of the public health law, as amended by chapter 335 of the laws of 2017, is amended to read as follows: n. general hospitals and residential health care facilities as defined in article twenty-eight of this chapter, HOSPITALS AND RESIDENTIAL FACILITIES LICENSED BY OR OPERATED BY THE OFFICE OF MENTAL HEALTH PURSU- ANT TO THE MENTAL HYGIENE LAW, and other health care facilities licensed by the state in which persons reside; provided, however, that the provisions of this subdivision shall not prohibit smoking [and vaping] by patients in separate enclosed rooms of residential health care facil- ities, adult care facilities established or certified under title two of article seven of the social services law, [community mental health resi- dences established under section 41.44 of the mental hygiene law,] or facilities where day treatment programs are provided, which are desig- nated as smoking [and vaping] rooms for patients of such facilities or programs; § 15. Subdivision 2 of section 1399-o of the public health law is amended by adding a new paragraph c to read as follows: C. ON THE GROUNDS OF HOSPITALS LICENSED BY OR OPERATED BY THE OFFICE OF MENTAL HEALTH PURSUANT TO THE MENTAL HYGIENE LAW. § 16. Section 399-gg of the general business law, as added by chapter 542 of the laws of 2014, is amended to read as follows: § 399-gg. Packaging of [electronic liquid] VAPOR PRODUCTS. 1. No person, firm or corporation shall sell or offer for sale any [electronic S. 1509--A 97 A. 2009--A liquid] VAPOR PRODUCTS, as defined in [paragraph (e) of] subdivision [one] SIXTEEN of section [thirteen hundred ninety-nine-cc] THIRTEEN HUNDRED NINETY-NINE-AA of the public health law, unless the [electronic liquid] VAPOR PRODUCTS is sold or offered for sale in a child resistant bottle which is designed to prevent accidental exposure of children to [electronic liquids] VAPOR PRODUCTS. 2. Any violation of this section shall be punishable by a civil penal- ty not to exceed one thousand dollars. § 17. The tax law is amended by adding a new article 28-C to read as follows: ARTICLE 28-C SUPPLEMENTAL TAX ON VAPOR PRODUCTS SECTION 1180. DEFINITIONS. 1181. IMPOSITION OF TAX. 1182. IMPOSITION OF COMPENSATING USE TAX. 1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL. 1184. ADMINISTRATIVE PROVISIONS. 1185. CRIMINAL PENALTIES. 1186. DEPOSIT AND DISPOSITION OF REVENUE. § 1180. DEFINITIONS. FOR THE PURPOSES OF THE TAXES IMPOSED BY THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (A) "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED IN TO 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 MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF ARTI- CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW. (B) "VAPOR PRODUCTS DEALER" MEANS A PERSON LICENSED BY THE COMMISSION- ER TO SELL VAPOR PRODUCTS IN THIS STATE. § 1181. IMPOSITION OF TAX. IN ADDITION TO ANY OTHER TAX IMPOSED BY THIS CHAPTER OR OTHER LAW, THERE IS HEREBY IMPOSED A TAX OF TWENTY PERCENT ON RECEIPTS FROM THE RETAIL SALE OF VAPOR PRODUCTS SOLD IN THIS STATE. THE TAX IS IMPOSED ON THE PURCHASER AND COLLECTED BY THE VAPOR PRODUCTS DEALER AS DEFINED IN SUBDIVISION (B) OF SECTION ELEVEN HUNDRED EIGHTY OF THIS ARTICLE, IN TRUST FOR AND ON ACCOUNT OF THE STATE. § 1182. IMPOSITION OF COMPENSATING USE TAX. (A) EXCEPT TO THE EXTENT THAT VAPOR PRODUCTS HAVE ALREADY BEEN OR WILL BE SUBJECT TO THE TAX IMPOSED BY SECTION ELEVEN HUNDRED EIGHTY-ONE OF THIS ARTICLE, OR ARE OTHERWISE EXEMPT UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED A USE TAX ON EVERY USE WITHIN THE STATE OF VAPOR PRODUCTS: (1) PURCHASED AT RETAIL; AND (2) MANUFACTURED OR PROCESSED BY THE USER IF ITEMS OF THE SAME KIND ARE SOLD BY HIM OR HER IN THE REGULAR COURSE OF HIS OR HER BUSINESS. (B) FOR PURPOSES OF PARAGRAPH ONE OF SUBDIVISION (A) OF THIS SECTION, THE TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH VAPOR PRODUCT PURCHASED AT RETAIL. FOR PURPOSES OF PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION, THE TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE PRICE AT WHICH SUCH ITEMS OF THE SAME KIND OF VAPOR PRODUCT ARE OFFERED FOR SALE BY THE USER, AND THE MERE STORAGE, KEEPING, RETENTION OR WITHDRAWAL FROM STORAGE OF SUCH VAPOR PRODUCT BY THE PERSON THAT MANUFACTURED OR PROC- S. 1509--A 98 A. 2009--A ESSED SUCH VAPOR PRODUCT SHALL NOT BE DEEMED A TAXABLE USE BY HIM OR HER. (C) THE TAX DUE PURSUANT TO THIS SECTION SHALL BE PAID AND REPORTED NO LATER THAN TWENTY DAYS AFTER SUCH USE ON A FORM PRESCRIBED BY THE COMMISSIONER. § 1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL. (A) EVERY PERSON WHO INTENDS TO SELL VAPOR PRODUCTS IN THIS STATE MUST RECEIVE FROM THE COMMISSIONER A CERTIFICATE OF REGISTRATION PRIOR TO ENGAGING IN BUSINESS. SUCH PERSON MUST ELECTRONICALLY SUBMIT A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION FOR EACH LOCATION AT WHICH VAPOR PRODUCTS WILL BE SOLD IN THIS STATE, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND SHALL BE ACCOMPANIED BY A NON-REFUNDABLE APPLICATION FEE OF THREE HUNDRED DOLLARS. (B) A VAPOR PRODUCTS DEALER CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE CALENDAR YEAR FOR WHICH IT IS ISSUED UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION OF THE TERM STATED ON THE CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE SHALL BE NULL AND VOID. A CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE AND SHALL BE DESTROYED IMMEDIATELY UPON THE VAPOR PRODUCTS DEALER CEASING TO DO BUSINESS AS SPECIFIED IN SUCH CERTIFICATE OR IN THE EVENT THAT SUCH BUSINESS NEVER COMMENCED. (C) EVERY VAPOR PRODUCT DEALER SHALL PUBLICLY DISPLAY A VAPOR PRODUCTS DEALER CERTIFICATE OF REGISTRATION IN EACH PLACE OF BUSINESS IN THIS STATE WHERE VAPOR PRODUCTS ARE SOLD AT RETAIL. A VAPOR PRODUCTS DEALER WHO HAS NO REGULAR PLACE OF BUSINESS SHALL PUBLICLY DISPLAY SUCH VALID CERTIFICATE ON EACH OF ITS CARTS, STANDS, TRUCKS OR OTHER MERCHANDISING DEVICES THROUGH WHICH IT SELLS VAPOR PRODUCTS. (D) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS- TRATION TO ANY APPLICANT WHO DOES NOT POSSESS A VALID CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER. IN ADDITION, THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGIS- TRATION, OR SUSPEND, CANCEL OR REVOKE A CERTIFICATE OF REGISTRATION ISSUED TO ANY PERSON WHO: (A) HAS A PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER; (B) HAS HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE OR ANY LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (C) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (D) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTICLE; (E) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO BE GIVEN A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTICLE WHICH IS FALSE; (F) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE; OR (G) WHOSE PLACE OF BUSINESS IS AT THE SAME PREMISES AS THAT OF A PERSON WHOSE VAPOR PRODUCTS DEALER REGISTRATION HAS BEEN REVOKED AND WHERE SUCH REVOCATION IS STILL IN EFFECT, UNLESS THE APPLICANT OR VAPOR PRODUCTS DEALER PROVIDES THE COMMISSIONER WITH ADEQUATE DOCUMENTA- TION DEMONSTRATING THAT SUCH APPLICANT OR VAPOR PRODUCTS DEALER ACQUIRED THE PREMISES OR BUSINESS THROUGH AN ARM'S LENGTH TRANSACTION AS DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER. (2) IN ADDITION TO THE GROUNDS PROVIDED IN PARAGRAPH ONE OF THIS SUBDIVISION, THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGISTRATION AND SHALL CANCEL OR SUSPEND A CERTIFICATE OF REGISTRATION AS DIRECTED BY AN ENFORCEMENT OFFICER PURSUANT TO ARTICLE THIRTEEN-F OF THE PUBLIC HEALTH LAW. NOTWITHSTANDING ANY PROVISION OF LAW TO THE S. 1509--A 99 A. 2009--A CONTRARY, AN APPLICANT WHOSE APPLICATION FOR A CERTIFICATE OF REGISTRA- TION IS REFUSED OR A VAPOR PRODUCTS DEALER WHOSE REGISTRATION IS CANCELLED OR SUSPENDED UNDER THIS PARAGRAPH SHALL HAVE NO RIGHT TO A HEARING UNDER THIS CHAPTER AND SHALL HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE COMMIS- SIONER WITH RESPECT TO SUCH REFUSAL, SUSPENSION OR CANCELLATION; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO DENY A VAPOR PRODUCTS DEALER A HEARING UNDER ARTICLE THIRTEEN-F OF THE PUBLIC HEALTH LAW OR TO PROHIBIT VAPOR PRODUCTS DEALERS FROM COMMENCING A COURT ACTION OR PROCEEDING AGAINST AN ENFORCEMENT OFFICER AS DEFINED IN SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC HEALTH LAW. (E) IF A VAPOR PRODUCTS DEALER IS SUSPENDED, CANCELLED OR REVOKED AND SUCH VAPOR PRODUCTS DEALER SELLS VAPOR PRODUCTS THROUGH MORE THAN ONE PLACE OF BUSINESS IN THIS STATE, THE VAPOR PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION ISSUED TO THAT PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE, WHERE SUCH VIOLATION OCCURRED, SHALL BE SUSPENDED, REVOKED OR CANCELLED. PROVIDED, HOWEVER, UPON A VAPOR PRODUCTS DEALER'S THIRD SUSPENSION, CANCELLATION OR REVOCATION WITHIN A FIVE-YEAR PERIOD FOR ANY ONE OR MORE BUSINESSES OWNED OR OPERATED BY THE VAPOR PRODUCTS DEALER, SUCH SUSPENSION, CANCELLATION, OR REVOCATION OF THE VAPOR PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION SHALL APPLY TO ALL PLACES OF BUSINESS WHERE HE OR SHE SELLS VAPOR PRODUCTS IN THIS STATE. (F) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION MUST NOTIFY THE COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE CERTIF- ICATE OR CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR THE CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS AND MUST BE MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER. (G) EVERY VAPOR PRODUCTS DEALER WHO HOLDS A CERTIFICATE OF REGISTRA- TION UNDER THIS ARTICLE SHALL BE REQUIRED TO REAPPLY FOR A CERTIFICATE OF REGISTRATION FOR THE FOLLOWING CALENDAR YEAR ON OR BEFORE THE TWENTI- ETH DAY OF SEPTEMBER AND SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND CONDITIONS, INCLUDING GROUNDS FOR REFUSAL, AS AN INITIAL REGISTRATION UNDER THIS ARTICLE, INCLUDING BUT NOT LIMITED TO THE PAYMENT OF THE THREE HUNDRED DOLLAR APPLICATION FEE FOR EACH RETAIL LOCATION. (H) IN ADDITION TO ANY OTHER PENALTY IMPOSED BY THIS CHAPTER, ANY VAPOR PRODUCTS DEALER WHO VIOLATES THE PROVISIONS OF THIS SECTION, (1) FOR A FIRST VIOLATION IS LIABLE FOR A CIVIL FINE NOT LESS THAN FIVE THOUSAND DOLLARS BUT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND SUCH CERTIFICATE OF REGISTRATION MAY BE SUSPENDED FOR A PERIOD OF NOT MORE THAN SIX MONTHS; AND (2) FOR A SECOND OR SUBSEQUENT VIOLATION WITHIN THREE YEARS FOLLOWING A PRIOR VIOLATION OF THIS SECTION, IS LIABLE FOR A CIVIL FINE NOT LESS THAN TEN THOUSAND DOLLARS BUT NOT TO EXCEED THIRTY- FIVE THOUSAND DOLLARS AND SUCH CERTIFICATE OF REGISTRATION MAY BE SUSPENDED FOR A PERIOD OF UP TO THIRTY-SIX MONTHS; OR (3) FOR A THIRD VIOLATION WITHIN A PERIOD OF FIVE YEARS, ITS VAPOR PRODUCTS CERTIFICATE OR CERTIFICATES OF REGISTRATION ISSUED TO EACH PLACE OF BUSINESS OWNED OR OPERATED BY THE VAPOR PRODUCTS DEALER IN THIS STATE, SHALL BE REVOKED FOR A PERIOD OF UP TO FIVE YEARS. § 1184. ADMINISTRATIVE PROVISIONS. (A) EXCEPT AS OTHERWISE PROVIDED FOR IN THIS ARTICLE, THE TAXES IMPOSED BY THIS ARTICLE SHALL BE ADMINIS- TERED AND COLLECTED IN A LIKE MANNER AS AND JOINTLY WITH THE TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS CHAPTER. IN ADDITION, EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, ALL S. 1509--A 100 A. 2009--A OF THE PROVISIONS OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER (EXCEPT SECTIONS ELEVEN HUNDRED SEVEN, ELEVEN HUNDRED EIGHT, ELEVEN HUNDRED NINE, AND ELEVEN HUNDRED FORTY-EIGHT) RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION AND REVIEW OF THE TAXES IMPOSED BY SUCH SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN, INCLUDING, BUT NOT LIMITED TO, THE PROVISIONS RELATING TO DEFINITIONS, RETURNS, EXEMPTIONS, PENALTIES, TAX SECRECY, PERSONAL LIABILITY FOR THE TAX, AND COLLECTION OF TAX FROM THE CUSTOMER, SHALL APPLY TO THE TAXES IMPOSED BY THIS ARTI- CLE SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO THE TAXES IMPOSED BY THIS ARTICLE WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTI- CLE AND SUCH MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE TAXES SO IMPOSED. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE. (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE EXEMPTIONS PROVIDED IN PARAGRAPH TEN OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, AND THE PROVISIONS OF SECTION ELEVEN HUNDRED SIXTEEN, EXCEPT THOSE PROVIDED IN PARAGRAPHS ONE, TWO, THREE AND SIX OF SUBDIVISION (A) OF SUCH SECTION, SHALL NOT APPLY TO THE TAXES IMPOSED BY THIS ARTICLE. (C) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION OR SECTION ELEVEN HUNDRED FORTY-SIX OF THIS CHAPTER, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE COMMISSIONER OF HEALTH OR HIS OR HER AUTHORIZED REPRESENTATIVE TO INSPECT ANY RETURN RELATED TO THE TAX IMPOSED BY THIS ARTICLE AND MAY FURNISH TO THE COMMISSIONER OF HEALTH ANY SUCH RETURN OR SUPPLY HIM OR HER WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF A LIABILITY UNDER THIS ARTICLE. § 1185. CRIMINAL PENALTIES. THE CRIMINAL PENALTIES IN SECTIONS EIGH- TEEN HUNDRED ONE THROUGH EIGHTEEN HUNDRED SEVEN AND EIGHTEEN HUNDRED SEVENTEEN OF THIS CHAPTER SHALL APPLY TO THIS ARTICLE WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE. § 1186. DEPOSIT AND DISPOSITION OF REVENUE. THE TAXES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK- ING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER, TO THE CREDIT OF THE COMPTROLLER IN TRUST FOR THE TOBACCO CONTROL AND INSURANCE INITIATIVES POOL ESTABLISHED BY SECTION NINETY-TWO-DD OF THE STATE FINANCE LAW AND DISTRIBUTED BY THE COMMISSIONER OF HEALTH IN ACCORDANCE WITH SECTION TWENTY-EIGHT HUNDRED SEVEN-V OF THE PUBLIC HEALTH LAW. 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. PROVIDED, HOWEVER THAT THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNTS HE OR SHE RECEIVES FROM THE REGISTRATION FEES UNDER SECTION ELEVEN HUNDRED EIGHTY-THREE OF THIS ARTICLE, BEFORE DEPOSIT INTO THE TOBACCO CONTROL AND INSURANCE INITIATIVES POOL, A REASONABLE AMOUNT NECESSARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPARTMENT FOR THE S. 1509--A 101 A. 2009--A COSTS INCURRED TO ADMINISTER, COLLECT AND DISTRIBUTE THE TAXES IMPOSED BY THIS ARTICLE. § 18. Subsection (a) of section 92-dd of the state finance law, as amended by section 3 of part T of chapter 61 of the laws of 2011, is amended to read as follows: (a) On and after April first, two thousand five, such fund shall consist of the revenues heretofore and hereafter collected or required to be deposited pursuant to paragraph (a) of subdivision eighteen of section twenty-eight hundred seven-c, and sections twenty-eight hundred seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t of the public health law, subdivision (b) of section four hundred eight- y-two AND SECTION ELEVEN HUNDRED EIGHTY-SIX of the tax law and required to be credited to the tobacco control and insurance initiatives pool, subparagraph (O) of paragraph four of subsection (j) of section four thousand three hundred one of the insurance law, section twenty-seven of part A of chapter one of the laws of two thousand two and all other moneys credited or transferred thereto from any other fund or source pursuant to law. § 19. Severability clause. If any clause, sentence, paragraph, subdi- vision, 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. § 20. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however that section seven- teen of this act shall take effect on the first day of a quarterly peri- od described in subdivision (b) of section 1136 of the tax law next commencing at least one hundred eighty days after this act shall become a law, and shall apply to sales and uses of vapor products on or after such date. PART VV Section 1. This act shall be known and may be cited as the "Cannabis Regulation and Taxation Act". § 2. A new chapter 7-A of the consolidated laws is added, to read as follows: CHAPTER 7-A OF THE CONSOLIDATED LAWS CANNABIS LAW ARTICLE 1 SHORT TITLE; POLICY OF STATE AND PURPOSE OF CHAPTER; DEFINITIONS Section 1. Short title. 2. Policy of state and purpose of chapter. 3. Definitions. § 1. Short Title. This chapter shall be known and may be cited and referred to as the "cannabis law". § 2. Policy of state and purpose of chapter. It is hereby declared as policy of the state of New York that it is necessary to properly regu- S. 1509--A 102 A. 2009--A late and control the cultivation, processing, manufacture, wholesale, and retail production, distribution, transportation, and sale of canna- bis, cannabis products, medical cannabis, and hemp cannabis within the state of New York, for the purposes of fostering and promoting temper- ance in their consumption, to properly protect the public health, safe- ty, and welfare, and to promote social equality. It is hereby declared that such policy will best be carried out by empowering the state office of cannabis management and its executive director, to determine whether public convenience and advantage will be promoted by the issuance of registrations, licenses and/or permits granting the privilege to produce, distribute, transport, sell, or traffic in cannabis, medical cannabis, or hemp cannabis, to increase or decrease in the number there- of and the location of premises registered, licensed, or permitted thereby, subject only to the right of judicial review hereinafter provided for. It is the purpose of this chapter to carry out that policy in the public interest. The restrictions, regulations, and provisions contained in this chapter are enacted by the legislature for the protection of the health, safety, and welfare of the people of the state. § 3. Definitions. Whenever used in this chapter, unless otherwise expressly stated or unless the context or subject matter requires a different meaning, the following terms shall have the representative meanings hereinafter set forth or indicated: 1. "Applicant" means a for-profit entity or not-for-profit corporation and includes: board members, officers, managers, owners, partners, prin- cipal stakeholders and members who submit an application to become a registered organization, licensee or permittee. 2. "Bona fide cannabis retailer association" shall mean an association of retailers holding licenses under this chapter, organized under the non-profit or not-for-profit laws of this state. 3. "Cannabis" means all parts of the plant of the genus cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. 4. "Concentrated cannabis" means: (a) the separated resin, whether crude or purified, obtained from a plant of the genus cannabis; or (b) a material, preparation, mixture, compound or other substance which contains more than three percent by weight of delta-9 tetrahydrocannabi- nol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) monoterpene numbering system. 5. "Cannabis consumer" means a person, twenty-one years of age or older, who purchases cannabis or cannabis products for personal use by persons twenty-one years of age or older, but not for resale to others. 6. "Adult-use cannabis processor" means a person licensed by the office to purchase cannabis and concentrated cannabis from cannabis cultivators, to process cannabis, concentrated cannabis, and cannabis infused products, package and label cannabis, concentrated cannabis and cannabis infused products for sale in retail outlets, and sell cannabis, concentrated cannabis and cannabis infused products at wholesale to licensed adult-use cannabis distributors. 7. "Cannabis product" or "adult-use cannabis" means cannabis, concen- trated cannabis, and cannabis-infused products for use by a cannabis consumer. 8. "Adult-use cannabis retail dispenser" means a person licensed by the executive director to purchase cannabis, concentrated cannabis, and S. 1509--A 103 A. 2009--A cannabis-infused products from cannabis processors and cannabis distrib- utors, and sell cannabis, concentrated cannabis and cannabis-infused products in a retail outlet. 9. "Certified medical use" means the acquisition, possession, use, or transportation of medical cannabis by a certified patient, or the acqui- sition, possession, delivery, transportation or administration of medical cannabis by a designated caregiver or designated caregiver facility, for use as part of the treatment of the patient's serious condition, as authorized in a certification under this chapter including enabling the patient to tolerate treatment for the serious condition. 10. "Caring for" means treating a patient, in the course of which the practitioner has completed a full assessment of the patient's medical history and current medical condition. 11. "Certified patient" means a patient who is a resident of New York state or receiving care and treatment in New York state as determined by the executive director in regulation, and is certified under section thirty of this chapter. 12. "Certification" means a certification, made under this chapter. 13. "Cultivation" shall include, the planting, growing, cloning, harvesting, drying, curing, grading and trimming of cannabis, or such other cultivation related processes as determined by the executive director in regulation. 14. "Executive director" means the executive director of the office of cannabis management. 15. "Convicted" and "conviction" include and mean a finding of guilt resulting from a plea of guilty, the decision of a court or magistrate or the verdict of a jury, irrespective of the pronouncement of judgment or the suspension thereof. 16. "Designated caregiver" means an individual designated by a certi- fied patient in a registry application. A certified patient may desig- nate up to five designated caregivers. 17. "Designated caregiver facility" means a general hospital or resi- dential health care facility operating pursuant to article twenty-eight of the public health law; an adult care facility operating pursuant to title two of article seven of the social services law; a community mental health residence established pursuant to section 41.44 of the mental hygiene Law; a hospital operating pursuant to section 7.17 of the mental hygiene law; a mental hygiene facility operating pursuant to article thirty-one of the mental hygiene law; an inpatient or residen- tial treatment program certified pursuant to article thirty-two of the mental hygiene law; a residential facility for the care and treatment of persons with developmental disabilities operating pursuant to article sixteen of the mental hygiene law; a residential treatment facility for children and youth operating pursuant to article thirty-one of the mental hygiene law; a private or public school; research institution with an internal review board; or any other facility as determined by the executive director in regulation; that registers with the office of cannabis management to assist one or more certified patients with the acquisition, possession, delivery, transportation or administration of medical cannabis. 18. "Felony" means any criminal offense classified as a felony under the laws of this state or any criminal offense committed in any other state, district, or territory of the United States and classified as a felony therein which if committed within this state, would constitute a felony in this state. S. 1509--A 104 A. 2009--A 19. "Form of medical cannabis" means characteristics of the medical cannabis recommended or limited for a particular certified patient, including the method of consumption and any particular strain, variety, and quantity or percentage of cannabis or particular active ingredient. 20. "Government agency" means any office, division, board, bureau, commission, office, agency, authority or public corporation of the state or federal government or a county, city, town or village government within the state. 21. "Industrial hemp" means the plant Cannabis sativa L. and any part of such plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concen- tration of not more than three-tenths of one percent on a dry weight basis, used or intended for an industrial purpose or those food and/or food ingredients that are generally recognized as safe, as further defined and regulated in the agriculture and markets law. 22. "Hemp cannabis" means the plant Cannabis sativa L. and any part of such plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether grow- ing or not, with a delta-9 tetrahydrocannabinol concentration of not more than an amount determined by the office in regulation, used or intended for human or animal consumption or use for its cannabinoid content, as determined by the executive director in regulation. Hemp cannabis excludes industrial hemp used or intended exclusively for an industrial purpose and those food and/or food ingredients that are generally recognized as safe, as governed by the Agriculture and Markets Law, and shall not be regulated as "hemp" or "hemp cannabis" within the meaning of this section. 23. "Cannabinoid grower" means a person licensed by the office, and in compliance with article twenty-nine of the agriculture and markets law, to acquire, possess, cultivate, and sell hemp cannabis for its cannabi- noid content. 24. "Cannabinoid extractor" means a person licensed by the office to acquire, possess, extract and manufacture hemp cannabis from licensed cannabinoid growers for the manufacture and sale of hemp cannabis products marketed for cannabinoid content and used or intended for human or animal consumption or use. 25. "Individual dose" means a single measure of raw cannabis, medical cannabis or non-infused concentrate or medical concentrate. 26. "Labor peace agreement" means an agreement between an entity and a labor organization that, at a minimum, protects the state's proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interfer- ence with the registered organization or licensee's business. 27. "License" means a license issued pursuant to this chapter. 28. "Medical cannabis" means cannabis as defined in subdivision three of this section, intended for a certified medical use, as determined by the executive director in consultation with the commissioner of health. 30. "Office" or "office of cannabis management" means the New York state office of cannabis management. 31. "Permit" means a permit issued pursuant to this chapter. 32. "Permittee" means any person to whom a permit has been issued pursuant to this chapter. 33. "Person" means individual, institution, corporation, government or governmental subdivision or agency, business trust, estate, trust, part- nership or association, or any other legal entity. S. 1509--A 105 A. 2009--A 34. "Practitioner" means a practitioner who: (i) is authorized to prescribe controlled substances within the state, (ii) by training or experience is qualified to treat a serious condition as defined in subdivision forty-four of this section; and (iii) completes, at a mini- mum, a two-hour course as determined by the executive director in regu- lation; provided however, the executive director may revoke a practi- tioner's ability to certify patients for cause. 35. "Processing" includes, blending, extracting, infusing, packaging, labeling, branding and otherwise making or preparing cannabis products, or such other related processes as determined by the executive director in regulation. Processing shall not include the cultivation of cannabis. 36. "Public place" means a public place as defined in regulation by the executive director. 37. "Registered organization" means an organization registered under article three of this chapter. 38. "Registry application" means an application properly completed and filed with the office of cannabis management by a certified patient under article three of this chapter. 39. "Registry identification card" means a document that identifies a certified patient or designated caregiver, as provided under section thirty-two of this chapter. 40. "Retail sale" or "sale at retail" means a sale to a consumer or to any person for any purpose other than for resale. 41. "Retailer" means any person who sells at retail any cannabis prod- uct, the sale of which a license is required under the provisions of this chapter. 42. "Sale" means any transfer, exchange or barter in any manner or by any means whatsoever, and includes and means all sales made by any person, whether principal, proprietor, agent, servant or employee of any cannabis product. 43. "To sell" includes to solicit or receive an order for, to keep or expose for sale, and to keep with intent to sell and shall include the transportation or delivery of any cannabis product in the state. 44. "Serious condition" means having one of the following severe debilitating or life-threatening conditions: cancer, positive status for human immunodeficiency virus or acquired immune deficiency syndrome, amyotrophic lateral sclerosis, Parkinson's disease, multiple sclerosis, damage to the nervous tissue of the spinal cord with objective neurolog- ical indication of intractable spasticity, epilepsy, inflammatory bowel disease, neuropathies, Huntington's disease, post-traumatic stress disorder, pain that degrades health and functional capability where the use of medical cannabis is an alternative to opioid use, substance use disorder, Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthri- tis, autism, any condition authorized as part of a cannabis research license, or any other condition as added by the executive director. 45. "Traffic in" includes to cultivate, process, manufacture, distrib- ute or sell any cannabis, cannabis product, medical cannabis or hemp at wholesale or retail. 46. "Terminally ill" means an individual has a medical prognosis that the individual's life expectancy is approximately one year or less if the illness runs its normal course. 47. "Wholesale sale" or "sale at wholesale" means a sale to any person for purposes of resale. 48. "Distributor" means any person who sells at wholesale any cannabis product, except medical cannabis, for the sale of which a license is required under the provisions of this chapter. S. 1509--A 106 A. 2009--A 49. "Warehouse" means and includes a place in which cannabis products are housed or stored. ARTICLE 2 NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT Section 9. Establishment of an office of cannabis management. 10. Executive director. 11. Executive director's authority. 12. Rulemaking authority. 13. State cannabis advisory board. 14. Disposition of moneys received for license fees. 15. Legal presumptions. 16. Violations of cannabis laws or regulations; penalties and injunctions. 17. Formal hearings; notice and procedure. 18. Ethics, transparency and accountability. 19. Public health management campaign. § 9. Establishment of an office of cannabis management. Pursuant to a chapter of the laws of two thousand nineteen which added this chapter, there is hereby established, within the division of alcoholic beverage control, an independent office of cannabis management, which shall have exclusive jurisdiction to exercise the powers and duties provided by this chapter. The office shall exercise its authority by and through an executive director. § 10. Executive director. The executive director of the state office of cannabis management shall receive an annual salary not to exceed an amount appropriated therefor by the legislature and his or her expenses actually and necessarily incurred in the performance of his official duties, unless otherwise provided by the legislature. § 11. Functions, powers and duties of the office and executive direc- tor. The office of cannabis management, by and through its executive director, shall have the following powers and duties: 1. To issue or refuse to issue any registration, license or permit provided for in this chapter. 2. To limit, or not to limit, in the executive director's discretion, the number of registrations, licenses and permits of each class to be issued within the state or any political subdivision thereof, and in connection therewith to prohibit the acceptance of applications for such classes which have been so limited. 3. To revoke, cancel or suspend for cause any registration, license, or permit issued under this chapter and/or to impose a civil penalty for cause against any holder of a registration, license, or permit issued pursuant to this chapter. Any civil penalty so imposed shall be in addi- tion to and separate and apart from the terms and provisions of the bond required pursuant to section thirty-six of this chapter. 4. To fix by rule the standards of cultivation and processing of medical cannabis, adult use cannabis and hemp cannabis, including but not limited to, the ability to regulate potency and the types of products which may be manufactured and/or processed, in order to ensure the health and safety of the public and the use of proper ingredients and methods in the manufacture of all cannabis and hemp cannabis to be sold or consumed in the state. 5. To hold hearings, subpoena witnesses, compel their attendance, administer oaths, to examine any person under oath and in connection therewith to require the production of any books or records relative to S. 1509--A 107 A. 2009--A the inquiry. A subpoena issued under this section shall be regulated by the civil practice law and rules. 6. To limit or prohibit, at any time of public emergency and without previous notice or advertisement, the cultivation, processing, distrib- ution or sale of any or all cannabis products, medical cannabis or hemp cannabis, for and during the period of such emergency. 7. To appoint any necessary directors, deputies, counsels, assistants, investigators, and other employees within the limits provided by appro- priation. Investigators so employed by the office shall be deemed to be peace officers for the purpose of enforcing the provisions of the canna- bis control law or judgements or orders obtained for violation thereof, with all the powers set forth in section 2.20 of the criminal procedure law. 8. To remove any employee of the office for cause, after giving such employee a copy of the charges against him or her in writing, and an opportunity to be heard thereon. Any action taken under this subdivision shall be subject to and in accordance with the civil service law. 9. To inspect or provide for the inspection at any time of any prem- ises where cannabis or hemp cannabis is cultivated, processed, stored, distributed or sold. 10. To prescribe forms of applications for registrations, licenses and permits under this chapter and of all reports deemed necessary by the office. 11. To delegate the powers provided in this section to such other officers or employees or other state agencies as may be deemed appropri- ate by the executive director. 12. To appoint such advisory groups and committees as the executive director deems necessary to provide assistance to the office to carry out the purposes and objectives of this chapter. 13. To exercise the powers and perform the duties in relation to the administration of the office as are necessary but not specifically vest- ed by this chapter, including but not limited to budgetary and fiscal matters. 14. To develop and establish minimum criteria for certifying employees to work in the cannabis industry, including the establishment of a cannabis workers certification program. 15. To enter into contracts, memoranda of understanding, and agree- ments as deemed appropriate by the executive director to effectuate the policy and purpose of this chapter. 16. To issue and administer low interest or zero-interest loans to qualified social equity applicants provided the office has sufficient funds available for such purposes. 17. If the executive director finds that public health, safety, or welfare imperatively requires emergency action, and incorporates a find- ing to that effect in an order, summary suspension of a license may be ordered, effective on the date specified in such order or upon service of a certified copy of such order on the licensee, whichever shall be later, pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined. In addition, the executive director may order the administrative seizure of product, issue a stop order, or take any other action necessary to effectuate and enforce the policy and purpose of this chapter. 18. To issue regulations, declaratory rulings, guidance and industry advisories. § 12. Rulemaking authority. 1. The office shall perform such acts, prescribe such forms and propose such rules, regulations and orders as S. 1509--A 108 A. 2009--A it may deem necessary or proper to fully effectuate the provisions of this chapter. 2. The office shall have the power to promulgate any and all necessary rules and regulations governing the production, processing, transporta- tion, distribution, and sale of medical cannabis, recreational cannabis, and hemp cannabis, including but not limited to the registration of organizations authorized to traffic in medical cannabis, the licensing and/or permitting of adult-use cannabis cultivators, processors, cooper- atives, distributors, and retail dispensaries, and the licensing of cannabinoid growers and extractors, including, but not limited to: (a) prescribing forms and establishing application, reinstatement, and renewal fees; (b) the qualifications and selection criteria for registration, licensing, or permitting; (c) the books and records to be created and maintained by registered organizations, licensees, and permittees, including the reports to be made thereon to the office, and inspection of any and all books and records maintained by any registered organization, licensee, or permitee and on the premise of any registered organization, licensee, or permit- tee; (d) methods of producing, processing, and packaging cannabis, medical cannabis, cannabis-infused products, concentrated cannabis, and hemp cannabis; conditions of sanitation, and standards of ingredients, quali- ty, and identity of cannabis products cultivated, processed, packaged, or sold by registered organizations and licensees; (e) security requirements for adult-use cannabis retail dispensaries and premises where cannabis products, medical cannabis, and hemp canna- bis, are cultivated, produced, processed, or stored, and safety proto- cols for registered organizations, licensees and their employees; and (f) hearing procedures and additional causes for cancellation, revoca- tion, and/or civil penalties against any person registered, licensed, or permitted by the authority. 3. The office shall promulgate rules and regulations that are calcu- lated to: (a) prevent the distribution of adult-use cannabis to persons under twenty-one years of age; (b) prevent the revenue from the sale of cannabis from going to crimi- nal enterprises, gangs, and cartels; (c) prevent the diversion of cannabis from this state to other states; (d) prevent cannabis activity that is legal under state law from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; (e) prevent violence and the use of firearms in the cultivation and distribution of cannabis; (f) prevent drugged driving and the exacerbation of other adverse public health consequences associated with the use of cannabis; (g) prevent the growing of cannabis on public lands and the attendant public safety and environmental dangers posed by cannabis production on public lands; and (h) prevent the possession and use of cannabis on federal property. 4. The office, in consultation with the department of agriculture and markets and the department of environmental conservation, shall promul- gate necessary rules and regulations governing the safe production of cannabis, including environmental and energy standards and restrictions on the use of pesticides. S. 1509--A 109 A. 2009--A § 13. State cannabis advisory board. 1. The executive director shall have the authority to establish within the office a state cannabis advi- sory board, which may advise the office on cannabis cultivation, proc- essing, distribution, transport, testing and sale and consider all matters submitted to it by the executive director. 2. The executive director of the office shall serve as the chairperson of the board. The vice chairperson shall be elected from among the members of the board by the members of such board, and shall represent the board in the absence of the chairperson at all official board func- tions. 3. The members of the board shall receive no compensation for their services but shall be allowed their actual and necessary expenses incurred in the performance of their duties as board members. 4. The executive director shall be authorized to promulgate regu- lations establishing the number of members on the board, the term of the board members and any other terms or conditions regarding the state cannabis advisory board. § 14. Disposition of moneys received for license fees. The office shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this chapter and the size of the canna- bis business being licensed, as follows: 1. The office shall charge each registered organization, licensee and permittee a registration, licensure or permit fee, and renewal fee, as applicable. The fees may vary depending upon the nature and scope of the different registration, licensure and permit activities. 2. The total fees assessed pursuant to this chapter shall be set at an amount that will generate sufficient total revenue to, at a minimum, fully cover the total costs of administering this chapter. 3. All registration and licensure fees shall be set on a scaled basis by the office, dependent on the size of the business. 4. The office shall deposit all fees collected in the New York state cannabis revenue fund established pursuant to section ninety-nine-ff of the state finance law. § 15. Legal presumptions. The action, proceedings, authority, and orders of the office in enforcing the provisions of the cannabis law and applying them to specific cases shall at all times be regarded as in their nature judicial, and shall be treated as prima facie just and legal. § 16. Violations of cannabis laws or regulations; penalties and injunctions. 1. A person who willfully violates any provision of this chapter, or any regulation lawfully made or established by any public officer under authority of this chapter, the punishment for violating which is not otherwise prescribed by this chapter or any other law, is punishable by imprisonment not exceeding one year, or by a fine not exceeding five thousand dollars or by both. 2. Any person who violates, disobeys or disregards any term or provision of this chapter or of any lawful notice, order or regulation pursuant thereto for which a civil penalty is not otherwise expressly prescribed by law, shall be liable to the people of the state for a civil penalty of not to exceed five thousand dollars for every such violation. 3. The penalty provided for in subdivision one of this section may be recovered by an action brought by the executive director in any court of competent jurisdiction. S. 1509--A 110 A. 2009--A 4. Nothing in this section shall be construed to alter or repeal any existing provision of law declaring such violations to be misdemeanors or felonies or prescribing the penalty therefor. 5. Such civil penalty may be released or compromised by the executive director before the matter has been referred to the attorney general, and where such matter has been referred to the attorney general, any such penalty may be released or compromised and any action commenced to recover the same may be settled and discontinued by the attorney general with the consent of the executive director. 6. It shall be the duty of the attorney general upon the request of the executive director to bring an action for an injunction against any person who violates, disobeys or disregards any term or provision of this chapter or of any lawful notice, order or regulation pursuant ther- eto; provided, however, that the executive director shall furnish the attorney general with such material, evidentiary matter or proof as may be requested by the attorney general for the prosecution of such an action. 7. It is the purpose of this section to provide additional and cumula- tive remedies, and nothing herein contained shall abridge or alter rights of action or remedies now or hereafter existing, nor shall any provision of this section, nor any action done by virtue of this section, be construed as estopping the state, persons or municipalities in the exercising of their respective rights. § 17. Formal hearings; notice and procedure. 1. The executive direc- tor, or any person designated by him or her for this purpose, may issue subpoenas and administer oaths in connection with any hearing or inves- tigation under or pursuant to this chapter, and it shall be the duty of the executive director and any persons designated by him or her for such purpose to issue subpoenas at the request of and upon behalf of the respondent. 2. The executive director and those designated by him or her shall not be bound by the laws of evidence in the conduct of hearing proceedings, but the determination shall be founded upon sufficient evidence to sustain it. 3. Notice of hearing shall be served at least fifteen days prior to the date of the hearing, provided that, whenever because of danger to the public health, safety or welfare it appears prejudicial to the interests of the people of the state to delay action for fifteen days, the executive director may serve the respondent with an order requiring certain action or the cessation of certain activities immediately or within a specified period of less than fifteen days. 4. Service of notice of hearing or order shall be made by personal service or by registered or certified mail. Where service, whether by personal service or by registered or certified mail, is made upon an incompetent, partnership, or corporation, it shall be made upon the person or persons designated to receive personal service by article three of the civil practice law and rules. 5. At a hearing, the respondent may appear personally, shall have the right of counsel, and may cross-examine witnesses against him or her and produce evidence and witnesses in his or her behalf. 6. Following a hearing, the executive director may make appropriate determinations and issue a final order in accordance therewith. 7. The executive director may adopt, amend and repeal administrative rules and regulations governing the procedures to be followed with respect to hearings, such rules to be consistent with the policy and S. 1509--A 111 A. 2009--A purpose of this chapter and the effective and fair enforcement of its provisions. 8. The provisions of this section shall be applicable to all hearings held pursuant to this chapter, except where other provisions of this chapter applicable thereto are inconsistent therewith, in which event such other provisions shall apply. § 18. Ethics, transparency and accountability. No member of the office or any officer, deputy, assistant, inspector or employee thereof shall have any interest, direct or indirect, either proprietary or by means of any loan, mortgage or lien, or in any other manner, in or on any premises where cannabis, medical cannabis or hemp is cultivated, processed, distributed or sold; nor shall he or she have any interest, direct or indirect, in any business wholly or partially devoted to the cultivation, processing, distribution, sale, transportation or storage of cannabis, medical cannabis or hemp, or own any stock in any corpo- ration which has any interest, proprietary or otherwise, direct or indi- rect, in any premises where cannabis, medical cannabis or hemp is culti- vated, processed, distributed or sold, or in any business wholly or partially devoted to the cultivation, processing, distribution, sale, transportation or storage of cannabis, medical cannabis or hemp, or receive any commission or profit whatsoever, direct or indirect, from any person applying for or receiving any license or permit provided for in this chapter, or hold any other elected or appointed public office in the state or in any political subdivision. Anyone who violates any of the provisions of this section shall be removed or shall divulge him or herself of such direct or indirect interests. § 19. Public health campaign. The office, in consultation with the commissioners of the department of health, office of alcoholism and substance abuse services and office of mental health, shall develop and implement a comprehensive public health campaign regarding adult-use cannabis. ARTICLE 3 MEDICAL CANNABIS Section 30. Certification of patients. 31. Lawful medical use. 32. Registry identification cards. 33. Registration as a designated caregiver facility. 34. Registered organizations. 35. Registering of registered organizations. 36. Expedited registration of registered organizations. 37. Reports of registered organizations. 38. Evaluation; research programs; report by office. 39. Cannabis research license. 40. Registered organizations and adult-use cannabis. 41. Home cultivation of medical cannabis. 42. Relation to other laws. 43. Protections for the medical use of cannabis. 44. Regulations. 45. Suspend; terminate. 46. Pricing. 47. Severability. § 30. Certification of patients. 1. A patient certification may only be issued if: S. 1509--A 112 A. 2009--A (a) the patient has a serious condition, which shall be specified in the patient's health care record; (b) the practitioner by training or experience is qualified to treat the serious condition; (c) the patient is under the practitioner's continuing care for the serious condition; and (d) in the practitioner's professional opinion and review of past treatments, the patient is likely to receive therapeutic or palliative benefit from the primary or adjunctive treatment with medical use of cannabis for the serious condition. 2. The certification shall include: (a) the name, date of birth and address of the patient; (b) a statement that the patient has a serious condition and the patient is under the practitioner's care for the seri- ous condition; (c) a statement attesting that all requirements of subdi- vision one of this section have been satisfied; (d) the date; and (e) the name, address, telephone number, and the signature of the certifying practitioner. The executive director may require by regulation that the certification shall be on a form provided by the office. The practition- er may state in the certification that, in the practitioner's profes- sional opinion, the patient would benefit from medical cannabis only until a specified date. The practitioner may state in the certification that, in the practitioner's professional opinion, the patient is termi- nally ill and that the certification shall not expire until the patient dies. 3. In making a certification, the practitioner may consider the form of medical cannabis the patient should consume, including the method of consumption and any particular strain, variety, and quantity or percent- age of cannabis or particular active ingredient, and appropriate dosage. The practitioner may state in the certification any recommendation or limitation the practitioner makes, in his or her professional opinion, concerning the appropriate form or forms of medical cannabis and dosage. 4. Every practitioner shall consult the prescription monitoring program registry prior to making or issuing a certification, for the purpose of reviewing a patient's controlled substance history. For purposes of this section, a practitioner may authorize a designee to consult the prescription monitoring program registry on his or her behalf, provided that such designation is in accordance with section thirty-three hundred forty-three-a of the public health law. 5. The practitioner shall give the certification to the certified patient, and place a copy in the patient's health care record. 6. No practitioner shall issue a certification under this section for himself or herself. 7. A registry identification card based on a certification shall expire one year after the date the certification is signed by the prac- titioner. 8. (a) If the practitioner states in the certification that, in the practitioner's professional opinion, the patient would benefit from medical cannabis only until a specified earlier date, then the registry identification card shall expire on that date; (b) if the practitioner states in the certification that in the practitioner's professional opinion the patient is terminally ill and that the certification shall not expire until the patient dies, then the registry identification card shall state that the patient is terminally ill and that the registration card shall not expire until the patient dies; (c) if the practitioner re-issues the certification to terminate the certification on an earlier date, then the registry identification card shall expire on that date S. 1509--A 113 A. 2009--A and shall be promptly destroyed by the certified patient; (d) if the certification so provides, the registry identification card shall state any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; and (e) the executive director shall make regulations to implement this subdivi- sion. § 31. Lawful medical use. The possession, acquisition, use, delivery, transfer, transportation, or administration of medical cannabis by a certified patient, designated caregiver or designated caregiver facili- ty, for certified medical use, shall be lawful under this article provided that: (a) the cannabis that may be possessed by a certified patient shall not exceed a sixty-day supply of the dosage as determined by the practi- tioner, consistent with any guidance and regulations issued by the exec- utive director, provided that during the last seven days of any sixty- day period, the certified patient may also possess up to such amount for the next sixty-day period; (b) the cannabis that may be possessed by designated caregivers does not exceed the quantities referred to in paragraph (a) of this subdivi- sion for each certified patient for whom the caregiver possesses a valid registry identification card, up to five certified patients; (c) the cannabis that may be possessed by designated caregiver facili- ties does not exceed the quantities referred to in paragraph (a) of this subdivision for each certified patient under the care or treatment of the facility; (d) the form or forms of medical cannabis that may be possessed by the certified patient, designated caregiver or designated caregiver facility pursuant to a certification shall be in compliance with any recommenda- tion or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient in the certif- ication; and (e) the medical cannabis shall be kept in the original package in which it was dispensed under this article, except for the portion removed for immediate consumption for certified medical use by the certified patient. § 32. Registry identification cards. 1. Upon approval of the certif- ication, the office shall issue registry identification cards for certi- fied patients and designated caregivers. A registry identification card shall expire as provided in this article or as otherwise provided in this section. The office shall begin issuing registry identification cards as soon as practicable after the certifications required by this chapter are granted. The office may specify a form for a registry appli- cation, in which case the office shall provide the form on request, reproductions of the form may be used, and the form shall be available for downloading from the office's website. 2. To obtain, amend or renew a registry identification card, a certi- fied patient or designated caregiver shall file a registry application with the office, unless otherwise exempted by the executive director in regulation. The registry application or renewal application shall include: (a) in the case of a certified patient: (i) the patient's certification, a new written certification shall be provided with a renewal application; (ii) the name, address, and date of birth of the patient; (iii) the date of the certification; S. 1509--A 114 A. 2009--A (iv) if the patient has a registry identification card based on a current valid certification, the registry identification number and expiration date of that registry identification card; (v) the specified date until which the patient would benefit from medical cannabis, if the certification states such a date; (vi) the name, address, and telephone number of the certifying practi- tioner; (vii) any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; (viii) if the certified patient designates a designated caregiver, the name, address, and date of birth of the designated caregiver, and other individual identifying information required by the office; and (ix) other individual identifying information required by the office; (b) in the case of a designated caregiver: (i) the name, address, and date of birth of the designated caregiver; (ii) if the designated caregiver has a registry identification card, the registry identification number and expiration date of that registry identification card; and (iii) other individual identifying information required by the office; (c) a statement that a false statement made in the application is punishable under section 210.45 of the penal law; (d) the date of the application and the signature of the certified patient or designated caregiver, as the case may be; (e) any other requirements determined by the executive director. 3. Where a certified patient is under the age of eighteen or otherwise incapable of consent: (a) The application for a registry identification card shall be made by an appropriate person over eighteen years of age. The application shall state facts demonstrating that the person is appropriate. (b) The designated caregiver shall be: (i) a parent or legal guardian of the certified patient; (ii) a person designated by a parent or legal guardian; (iii) a designated caregiver facility; or (iv) an appropriate person approved by the office upon a sufficient showing that no parent or legal guardian is appropriate or available. 4. No person may be a designated caregiver if the person is under twenty-one years of age unless a sufficient showing is made to the office that the person should be permitted to serve as a designated caregiver. The requirements for such a showing shall be determined by the executive director. 5. No person may be a designated caregiver for more than five certi- fied patients at one time. 6. If a certified patient wishes to change or terminate his or her designated caregiver, for whatever reason, the certified patient shall notify the office as soon as practicable. The office shall issue a notification to the designated caregiver that their registration card is invalid and must be promptly destroyed. The newly designated caregiver must comply with all requirements set forth in this section. 7. If the certification so provides, the registry identification card shall contain any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient. 8. The office shall issue separate registry identification cards for certified patients and designated caregivers as soon as reasonably prac- ticable after receiving a complete application under this section, unless it determines that the application is incomplete or factually inaccurate, in which case it shall promptly notify the applicant. S. 1509--A 115 A. 2009--A 9. If the application of a certified patient designates an individual as a designated caregiver who is not authorized to be a designated care- giver, that portion of the application shall be denied by the office but that shall not affect the approval of the balance of the application. 10. A registry identification card shall: (a) contain the name of the certified patient or the designated care- giver as the case may be; (b) contain the date of issuance and expiration date of the registry identification card; (c) contain a registry identification number for the certified patient or designated caregiver, as the case may be and a registry identifica- tion number; (d) contain a photograph of the individual to whom the registry iden- tification card is being issued, which shall be obtained by the office in a manner specified by the executive director in regulations; provided, however, that if the office requires certified patients to submit photographs for this purpose, there shall be a reasonable accom- modation of certified patients who are confined to their homes due to their medical conditions and may therefore have difficulty procuring photographs; (e) be a secure document as determined by the office; (f) plainly state any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; and (g) any other requirements determined by the executive director. 11. A certified patient or designated caregiver who has been issued a registry identification card shall notify the office of any change in his or her name or address or, with respect to the patient, if he or she ceases to have the serious condition noted on the certification within ten days of such change. The certified patient's or designated caregiver's registry identification card shall be deemed invalid and shall be promptly destroyed. 12. If a certified patient or designated caregiver loses his or her registry identification card, he or she shall notify the office within ten days of losing the card. The office shall issue a new registry iden- tification card as soon as practicable, which may contain a new registry identification number, to the certified patient or designated caregiver, as the case may be. 13. The office shall maintain a confidential list of the persons to whom it has issued registry identification cards. Individual identifying information obtained by the office under this article shall be confiden- tial and exempt from disclosure under article six of the public officers law. Notwithstanding this subdivision, the office may notify any appro- priate law enforcement agency of information relating to any violation or suspected violation of this article. 14. The office shall verify to law enforcement personnel in an appro- priate case whether a registry identification card is valid. 15. If a certified patient or designated caregiver willfully violates any provision of this article as determined by the executive director, his or her certification and registry identification card may be suspended or revoked. This is in addition to any other penalty that may apply. § 33. Registration as a designated caregiver facility. 1. To obtain, amend or renew a registration as a designated caregiver facility, the facility shall file a registry application with the office. The registry application or renewal application shall include: S. 1509--A 116 A. 2009--A (a) the facility's full name and address; (b) operating certificate or license number where appropriate; (c) printed name, title, and signature of an authorized facility representative; (d) a statement that the facility agrees to secure and ensure proper handling of all medical cannabis products; (e) an acknowledgement that a false statement in the application is punishable under section 210.45 of the penal law; and (f) any other information that may be required by the executive direc- tor. 2. Prior to issuing or renewing a designated caregiver facility regis- tration, the office may verify the information submitted by the appli- cant. The applicant shall provide, at the office's request, such infor- mation and documentation, including any consents or authorizations that may be necessary for the office to verify the information. 3. The office shall approve, deny or determine incomplete or inaccu- rate an initial or renewal application within thirty days of receipt of the application. If the application is approved within the 30-day peri- od, the office shall issue a registration as soon as is reasonably prac- ticable. 4. An applicant shall have thirty days from the date of a notification of an incomplete or factually inaccurate application to submit the mate- rials required to complete, revise or substantiate information in the application. If the applicant fails to submit the required materials within such thirty-day time period, the application shall be denied by the office. 5. Registrations issued under this section shall remain valid for two years from the date of issuance. § 34. Registered organizations. 1. A registered organization shall be a for-profit business entity or not-for-profit corporation organized for the purpose of acquiring, possessing, manufacturing, selling, deliver- ing, transporting, distributing or dispensing cannabis for certified medical use. 2. The acquiring, possession, manufacture, sale, delivery, transport- ing, distributing or dispensing of medical cannabis by a registered organization under this article in accordance with its registration under this article or a renewal thereof shall be lawful under this chap- ter. 3. Each registered organization shall contract with an independent laboratory permitted by the office to test the medical cannabis produced by the registered organization. The executive director shall approve the laboratory used by the registered organization and may require that the registered organization use a particular testing laboratory. 4. (a) A registered organization may lawfully, in good faith, sell, deliver, distribute or dispense medical cannabis to a certified patient or designated caregiver upon presentation to the registered organization of a valid registry identification card for that certified patient or designated caregiver. When presented with the registry identification card, the registered organization shall provide to the certified patient or designated caregiver a receipt, which shall state: the name, address, and registry identification number of the registered organization; the name and registry identification number of the certified patient and the designated caregiver, if any; the date the cannabis was sold; any recom- mendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; and the form and the quantity of medical cannabis sold. The registered organization shall S. 1509--A 117 A. 2009--A retain a copy of the registry identification card and the receipt for six years. (b) The proprietor of a registered organization shall file or cause to be filed any receipt and certification information with the office by electronic means on a real-time basis as the executive director shall require by regulation. When filing receipt and certification information electronically pursuant to this paragraph, the proprietor of the regis- tered organization shall dispose of any electronically recorded prescription information in such manner as the executive director shall by regulation require. 5. (a) No registered organization may sell, deliver, distribute or dispense to any certified patient or designated caregiver a quantity of medical cannabis larger than that individual would be allowed to possess under this chapter. (b) When dispensing medical cannabis to a certified patient or desig- nated caregiver, the registered organization: (i) shall not dispense an amount greater than a sixty-day supply to a certified patient until the certified patient has exhausted all but a seven day supply provided pursuant to a previously issued certification; and (ii) shall verify the information in subparagraph (i) of this paragraph by consulting the prescription monitoring program registry under this article. (c) Medical cannabis dispensed to a certified patient or designated caregiver by a registered organization shall conform to any recommenda- tion or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient. 6. When a registered organization sells, delivers, distributes or dispenses medical cannabis to a certified patient or designated caregiv- er, it shall provide to that individual a safety insert, which will be developed by the registered organization and approved by the executive director and include, but not be limited to, information on: (a) methods for administering medical cannabis in individual doses, (b) any potential dangers stemming from the use of medical cannabis, (c) how to recognize what may be problematic usage of medical cannabis and obtain appropriate services or treatment for problematic usage, and (d) other information as determined by the executive director. 7. Registered organizations shall not be managed by or employ anyone who has been convicted of any felony other than for the sale or possession of drugs, narcotics, or controlled substances, and provided that this subdivision only applies to (a) managers or employees who come into contact with or handle medical cannabis, and (b) a conviction less than ten years, not counting time spent in incarceration, prior to being employed, for which the person has not received a certificate of relief from disabilities or a certificate of good conduct under article twen- ty-three of the correction law. 8. Manufacturing of medical cannabis by a registered organization shall only be done in an indoor, enclosed, secure facility located in New York state, which may include a greenhouse. The executive director shall promulgate regulations establishing requirements for such facili- ties. 9. Dispensing of medical cannabis by a registered organization shall only be done in an indoor, enclosed, secure facility located in New York state, which may include a greenhouse. The executive director shall promulgate regulations establishing requirements for such facilities. 10. A registered organization shall determine the quality, safety, and clinical strength of medical cannabis manufactured or dispensed by the registered organization, and shall provide documentation of that quali- S. 1509--A 118 A. 2009--A ty, safety and clinical strength to the office and to any person or entity to which the medical cannabis is sold or dispensed. 11. A registered organization shall be deemed to be a "health care provider" for the purposes of article two-D of article two of the public health law. 12. Medical cannabis shall be dispensed to a certified patient or designated caregiver in a sealed and properly labeled package. The labeling shall contain: (a) the information required to be included in the receipt provided to the certified patient or designated caregiver by the registered organization; (b) the packaging date; (c) any applicable date by which the medical cannabis should be used; (d) a warning stat- ing, "This product is for medicinal use only. Women should not consume during pregnancy or while breastfeeding except on the advice of the certifying health care practitioner, and in the case of breastfeeding mothers, including the infant's pediatrician. This product might impair the ability to drive. Keep out of reach of children."; (e) the amount of individual doses contained within; and (f) a warning that the medical cannabis must be kept in the original container in which it was dispensed. 13. The executive director is authorized to make rules and regulations restricting the advertising and marketing of medical cannabis. § 35. Registering of registered organizations. 1. Application for initial registration. (a) An applicant for registration as a registered organization under section thirty-four of this article shall include such information prepared in such manner and detail as the executive director may require, including but not limited to: (i) a description of the activities in which it intends to engage as a registered organization; (ii) that the applicant: (A) is of good moral character; (B) possesses or has the right to use sufficient land, buildings, and other premises, which shall be specified in the application, and equip- ment to properly carry on the activity described in the application, or in the alternative posts a bond of not less than two million dollars; (C) is able to maintain effective security and control to prevent diversion, abuse, and other illegal conduct relating to the cannabis; and (D) is able to comply with all applicable state laws and regulations relating to the activities in which it intends to engage under the registration; (iii) that the applicant has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees and the maintenance of such a labor peace agreement shall be an ongoing material condition of certification; (iv) the applicant's status as a for-profit business entity or not- for-profit corporation; and (v) the application shall include the name, residence address and title of each of the officers and directors and the name and residence address of any person or entity that is a member of the applicant. Each such person, if an individual, or lawful representative if a legal enti- ty, shall submit an affidavit with the application setting forth: (A) any position of management or ownership during the preceding ten years of a ten per centum or greater interest in any other business, located in or outside this state, manufacturing or distributing drugs; S. 1509--A 119 A. 2009--A (B) whether such person or any such business has been convicted of a felony or had a registration or license suspended or revoked in any administrative or judicial proceeding; and (C) such other information as the executive director may reasonably require. 2. The applicant shall be under a continuing duty to report to the office any change in facts or circumstances reflected in the application or any newly discovered or occurring fact or circumstance which is required to be included in the application. 3. (a) The executive director shall grant a registration or amendment to a registration under this section if he or she is satisfied that: (i) the applicant will be able to maintain effective control against diversion of cannabis; (ii) the applicant will be able to comply with all applicable state laws; (iii) the applicant and its officers are ready, willing and able to properly carry on the manufacturing or distributing activity for which a registration is sought; (iv) the applicant possesses or has the right to use sufficient land, buildings and equipment to properly carry on the activity described in the application; (v) it is in the public interest that such registration be granted, including but not limited to: (A) whether the number of registered organizations in an area will be adequate or excessive to reasonably serve the area; (B) whether the registered organization is a minority and/or woman owned business enterprise or a service-disabled veteran-owned business; (C) whether the registered organization provides education and outreach to practitioners; (D) whether the registered organization promotes the research and development of medical cannabis and patient outreach; and (E) the affordability medical cannabis products offered by the regis- tered organization; (vi) the applicant and its managing officers are of good moral charac- ter; (vii) the applicant has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees; and the maintenance of such a labor peace agreement shall be an ongoing material condition of registration; and (viii) the applicant satisfies any other conditions as determined by the executive director. (b) If the executive director is not satisfied that the applicant should be issued a registration, he or she shall notify the applicant in writing of those factors upon which the denial is based. Within thirty days of the receipt of such notification, the applicant may submit a written request to the executive director to appeal the decision. (c) The fee for a registration under this section shall be an amount determined by the office in regulations; provided, however, if the registration is issued for a period greater than two years the fee shall be increased, pro rata, for each additional month of validity. (d) Registrations issued under this section shall be effective only for the registered organization and shall specify: (i) the name and address of the registered organization; (ii) which activities of a registered organization are permitted by the registration; S. 1509--A 120 A. 2009--A (iii) the land, buildings and facilities that may be used for the permitted activities of the registered organization; and (iv) such other information as the executive director shall reasonably provide to assure compliance with this article. (e) Upon application of a registered organization, a registration may be amended to allow the registered organization to relocate within the state or to add or delete permitted registered organization activities or facilities. The fee for such amendment shall be two hundred fifty dollars. 4. A registration issued under this section shall be valid for two years from the date of issue, except that in order to facilitate the renewals of such registrations, the executive director may upon the initial application for a registration, issue some registrations which may remain valid for a period of time greater than two years but not exceeding an additional eleven months. 5. (a) An application for the renewal of any registration issued under this section shall be filed with the office not more than six months nor less than four months prior to the expiration thereof. A late-filed application for the renewal of a registration may, in the discretion of the executive director, be treated as an application for an initial license. (b) The application for renewal shall include such information prepared in the manner and detail as the executive director may require, including but not limited to: (i) any material change in the circumstances or factors listed in subdivision one of this section; and (ii) every known charge or investigation, pending or concluded during the period of the registration, by any governmental or administrative agency with respect to: (A) each incident or alleged incident involving the theft, loss, or possible diversion of cannabis manufactured or distributed by the appli- cant; and (B) compliance by the applicant with the laws of the state with respect to any substance listed in section thirty-three hundred six of the public health law. (c) An applicant for renewal shall be under a continuing duty to report to the office any change in facts or circumstances reflected in the application or any newly discovered or occurring fact or circum- stance which is required to be included in the application. (d) If the executive director is not satisfied that the registered organization applicant is entitled to a renewal of the registration, he or she shall within a reasonably practicable time as determined by the executive director, serve upon the registered organization or its attor- ney of record in person or by registered or certified mail an order directing the registered organization to show cause why its application for renewal should not be denied. The order shall specify in detail the respects in which the applicant has not satisfied the executive director that the registration should be renewed. 6. (a) The executive director shall renew a registration unless he or she determines and finds that: (i) the applicant is unlikely to maintain or be able to maintain effective control against diversion; (ii) the applicant is unlikely to comply with all state laws applica- ble to the activities in which it may engage under the registration; S. 1509--A 121 A. 2009--A (iii) it is not in the public interest to renew the registration because the number of registered organizations in an area is excessive to reasonably serve the area; or (iv) the applicant has either violated or terminated its labor peace agreement. (b) For purposes of this section, proof that a registered organiza- tion, during the period of its registration, has failed to maintain effective control against diversion, violates any provision of this article, or has knowingly or negligently failed to comply with applica- ble state laws relating to the activities in which it engages under the registration, shall constitute grounds for suspension, termination or limitation of the registered organization's registration or as deter- mined by the executive director. The registered organization shall also be under a continuing duty to report to the authority any material change or fact or circumstance to the information provided in the regis- tered organization's application. 7. The office may suspend or terminate the registration of a regis- tered organization, on grounds and using procedures under this article relating to a license, to the extent consistent with this article. The authority shall suspend or terminate the registration in the event that a registered organization violates or terminates the applicable labor peace agreement. Conduct in compliance with this article which may violate conflicting federal law, shall not be grounds to suspend or terminate a registration. 8. The office shall begin issuing registrations for registered organ- izations as soon as practicable after the certifications required by this article are given. 9. The executive director shall register at least ten registered organizations that manufacture medical cannabis with no more than four dispensing sites wholly owned and operated by such registered organiza- tion. The executive director shall ensure that such registered organiza- tions and dispensing sites are geographically distributed across the state. The executive director may register additional registered organ- izations. § 36. Expedited registration of registered organizations. 1. There is hereby established in the office an emergency medical cannabis access program, referred to in this section as the "program", under this section. The purpose of the program is to expedite the availability of medical cannabis to avoid suffering and loss of life, during the period before full implementation of and production under this article, espe- cially in the case of patients whose serious condition is progressive and degenerative or is such that delay in the patient's medical use of cannabis poses a serious risk to the patient's life or health. The executive director shall implement the program as expeditiously as prac- ticable, including by emergency regulation. 2. For the purposes of this section, and for specified limited times, the executive director may waive or modify the requirements of this article relating to registered organizations, consistent with the legis- lative intent and purpose of this article and this section. Where an entity seeking to be a registered organization under the program oper- ates in a jurisdiction other than the state of New York, under licensure or other governmental recognition of that jurisdiction, and the laws of that jurisdiction are acceptable to the executive director as consistent with the legislative intent and purpose of this article and this section, then the executive director may accept that licensure or recog- nition as wholly or partially satisfying the requirements of this arti- S. 1509--A 122 A. 2009--A cle, for purposes of the registration and operation of the registered organization under the program and this section. 3. In considering an application for registration as a registered organization under this section, the executive director shall give pref- erence to the following: (a) an applicant that is currently producing or providing or has a history of producing or providing medical cannabis in another jurisdic- tion in full compliance with the laws of the jurisdiction; (b) an applicant that is able and qualified to both produce, distrib- ute, and dispense medical cannabis to patients expeditiously; and (c) an applicant that proposes a location or locations for dispensing by the registered organization, which ensure, to the greatest extent possible, that certified patients have access to a registered organiza- tion. 4. The executive director may make regulations under this section: (a) limiting registered organizations registered under this section; or (b) limiting the allowable levels of cannabidiol and tetrahydrocanna- binol that may be contained in medical cannabis authorized under this article, based on therapeutics and patient safety. 5. A registered organization under this section may apply under this article to receive or renew registration. § 37. Reports of registered organizations. 1. The executive director shall, by regulation, require each registered organization to file reports by the registered organization during a particular period. The executive director shall determine the information to be reported and the forms, time, and manner of the reporting. 2. The executive director shall, by regulation, require each regis- tered organization to adopt and maintain security, tracking, record keeping, record retention and surveillance systems, relating to all medical cannabis at every stage of acquiring, possession, manufacture, sale, delivery, transporting, distributing, or dispensing by the regis- tered organization, subject to regulations of the executive director. § 38. Evaluation; research programs; report by office. 1. The execu- tive director may provide for the analysis and evaluation of the opera- tion of this title. The executive director may enter into agreements with one or more persons, not-for-profit corporations or other organiza- tions, for the performance of an evaluation of the implementation and effectiveness of this title. 2. The office may develop, seek any necessary federal approval for, and carry out research programs relating to medical use of cannabis. Participation in any such research program shall be voluntary on the part of practitioners, patients, and designated caregivers. 3. The office shall report every two years, beginning two years after the effective date of this chapter, to the governor and the legislature on the medical use of cannabis under this title and make appropriate recommendations. § 39. Cannabis research license. 1. The executive director shall establish a cannabis research license that permits a licensee to produce, process, purchase and possess cannabis for the following limit- ed research purposes: (a) to test chemical potency and composition levels; (b) to conduct clinical investigations of cannabis-derived drug products; (c) to conduct research on the efficacy and safety of administering cannabis as part of medical treatment; and S. 1509--A 123 A. 2009--A (d) to conduct genomic or agricultural research. 2. As part of the application process for a cannabis research license, an applicant must submit to the office a description of the research that is intended to be conducted as well as the amount of cannabis to be grown or purchased. The office shall review an applicant's research project and determine whether it meets the requirements of subsection one of this section. In addition, the office shall assess the applica- tion based on the following criteria: (a) project quality, study design, value, and impact; (b) whether the applicant has the appropriate personnel, expertise, facilities and infrastructure, funding, and human, animal, or other approvals in place to successfully conduct the project; and (c) whether the amount of cannabis to be grown or purchased by the applicant is consistent with the project's scope and goals. If the office determines that the research project does not meet the require- ments of subsection one of this section, the application must be denied. 3. A cannabis research licensee may only sell cannabis grown or within its operation to other cannabis research licensees. The office may revoke a cannabis research license for violations of this subsection. 4. A cannabis research licensee may contract with the higher education institutions to perform research in conjunction with the university. All research projects, entered into under this section must be approved by the office and meet the requirements of subsection one of this section. 5. In establishing a cannabis research license, the executive director may adopt regulations on the following: (a) application requirements; (b) cannabis research license renewal requirements, including whether additional research projects may be added or considered; (c) conditions for license revocation; (d) security measures to ensure cannabis is not diverted to purposes other than research; (e) amount of plants, useable cannabis, cannabis concentrates, or cannabis-infused products a licensee may have on its premises; (f) licensee reporting requirements; (g) conditions under which cannabis grown by licensed cannabis produc- ers and other product types from licensed cannabis processors may be donated to cannabis research licensees; and (h) any additional requirements deemed necessary by the office. 6. A cannabis research license issued pursuant to this section must be issued in the name of the applicant, specify the location at which the cannabis researcher intends to operate, which must be within the state of New York, and the holder thereof may not allow any other person to use the license. 7. The application fee for a cannabis research license shall be deter- mined by the executive director on an annual basis. 8. Each cannabis research licensee shall issue an annual report to the office. The office shall review such report and make a determination as to whether the research project continues to meet the research quali- fications under this section. § 40. Registered organizations and adult-use cannabis. 1. The execu- tive director shall have the authority to grant some or all of the registered organizations previously registered with the department of health and currently registered and in good standing with the office, the ability to be licensed to cultivate, process, distribute and sell adult-use cannabis and cannabis products, pursuant to any fees, rules or conditions prescribed by the executive director in regulation, but S. 1509--A 124 A. 2009--A exempt from the restrictions on licensed adult-use cultivators, process- ors, and distributors from having any ownership interest in a licensed adult-use retail dispensary pursuant to article four of this chapter. 2. The office shall have the authority to hold a competitive bidding process, including an auction, to determine the registered organization(s) authorized to be licensed to cultivate, process, distribute and sell adult-use cannabis and to collect the fees generated from such auction to administer incubators and low or zero-interest loans to qualified social equity applicants. The timing and manner in which registered organizations may be granted such authority shall be determined by the executive director in regulation. 3. Alternatively, registered organizations may apply for licensure as an adult-use cannabis cultivator, adult-use cannabis processor, and adult-use cannabis distributor, or apply for licensure as an adult-use cannabis retail dispensary, subject to all of the restrictions and limi- tations set forth in article four of this chapter. § 41. Home cultivation of medical cannabis. 1. Certified patients and their designated caregiver(s) twenty-one years of age or older may apply for registration with the office to grow, possess or transport no more than four cannabis plants per certified patient with no more than eight cannabis plants per household. 2. All medical cannabis cultivated at home must be grown in an enclosed, locked space, not open or viewable to the public. Such homeg- rown medical cannabis must only be for use by the certified patient and may not be distributed, sold, or gifted. 3. The executive director shall develop rules and regulations govern- ing this section. § 42. Relation to other laws. 1. The provisions of this article shall apply, except that where a provision of this article conflicts with another provision of this chapter, this article shall apply. 2. Medical cannabis shall not be deemed to be a "drug" for purposes of article one hundred thirty-seven of the education law. § 43. Protections for the medical use of cannabis. 1. Certified patients, designated caregivers, designated caregiver facilities, prac- titioners, registered organizations and the employees of registered organizations, and cannabis researchers shall not be subject to arrest, prosecution, or penalty in any manner, or denied any right or privilege, including but not limited to civil penalty or disciplinary action by a business or occupational or professional licensing board or bureau, solely for the certified medical use or manufacture of cannabis, or for any other action or conduct in accordance with this article. 2. Being a certified patient shall be deemed to be having a "disabili- ty" under article fifteen of the executive law, section forty-c of the civil rights law, sections 240.00, 485.00, and 485.05 of the penal law, and section 200.50 of the criminal procedure law. This subdivision shall not bar the enforcement of a policy prohibiting an employee from performing his or her employment duties while impaired by a controlled substance. This subdivision shall not require any person or entity to do any act that would put the person or entity in direct violation of federal law or cause it to lose a federal contract or funding. 3. The fact that a person is a certified patient and/or acting in accordance with this article, shall not be a consideration in a proceed- ing pursuant to applicable sections of the domestic relations law, the social services law and the family court act. 4. (a) Certification applications, certification forms, any certified patient information contained within a database, and copies of registry S. 1509--A 125 A. 2009--A identification cards shall be deemed exempt from public disclosure under sections eighty-seven and eighty-nine of the public officers law. (b) The name, contact information, and other information relating to practitioners registered with the office under this article shall be public information and shall be maintained by the executive director on the office's website accessible to the public in searchable form. Howev- er, if a practitioner notifies the office in writing that he or she does not want his or her name and other information disclosed, that practi- tioner's name and other information shall thereafter not be public information or maintained on the office's website, unless the practi- tioner cancels the request. § 44. Regulations. The executive director shall make regulations to implement this article. § 45. Suspend; terminate. Based upon the recommendation of the execu- tive director and/or the superintendent of state police that there is a risk to the public health or safety, the governor may immediately termi- nate all licenses issued to registered organizations. § 46. Pricing. 1. Every sale of medical cannabis shall be at or below the price approved by the executive director. Every charge made or demanded for medical cannabis not in accordance with the price approved by the executive director, is prohibited. 2. The executive director is hereby authorized to set the per dose price of each form of medical cannabis sold by any registered organiza- tion. In reviewing the per dose price of each form of medical cannabis, the executive director may consider the fixed and variable costs of producing the form of cannabis and any other factor the executive direc- tor, in his or her discretion, deems relevant in reviewing the per dose price of each form of medical cannabis. § 47. Severability. If any clause, sentence, paragraph, section or part of this article shall be adjudged by any court of competent juris- diction to be invalid, the judgment shall not affect, impair, or invali- date the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part thereof directly involved in the controversy in which the judgment shall have been rendered. ARTICLE 4 ADULT-USE CANNABIS Section 60. Licenses issued. 61. License application. 62. Information to be requested in applications for licenses. 63. Fees. 64. Selection criteria. 65. Limitations of licensure; duration. 66. License renewal. 67. Amendments; changes in ownership and organizational struc- ture. 68. Adult-use cultivator license. 69. Adult-use processor license. 70. Adult-use cooperative license. 71. Adult-use distributor license. 72. Adult-use retail dispensary license. 73. Notification to municipalities of adult-use retail dispen- sary. S. 1509--A 126 A. 2009--A 74. On-site consumption license; provisions governing on-site consumption licenses. 75. Record keeping and tracking. 76. Inspections and ongoing requirements. 77. Adult-use cultivators, processors or distributors not to be interested in retail dispensaries. 78. Packaging and labeling of adult-use cannabis products. 79. Laboratory testing. 80. Provisions governing the cultivation and processing of adult-use cannabis. 81. Provisions governing the distribution of adult-use cannabis. 82. Provisions governing adult-use cannabis retail dispensaries. 83. Adult-use cannabis advertising. 84. Minority, women-owned businesses and disadvantaged farmers; incubator program. 85. Regulations. § 60. Licenses issued. The following kinds of licenses shall be issued by the executive director for the cultivation, processing, distribution and sale of cannabis to cannabis consumers: 1. Adult-use cultivator license; 2. Adult-use processor license; 3. Adult-use cooperative license; 4. Adult-use distributor license; 5. Adult-use retail dispensary license; 6. On-site consumption license; and 7. Any other type of license as prescribed by the executive director in regulation. § 61. License Application. 1. Any person may apply to the office for a license to cultivate, process, distribute or dispense cannabis within this state for sale. Such application shall be in writing and verified and shall contain such information as the office shall require. Such application shall be accompanied by a check or draft for the amount required by this article for such license. If the office shall approve the application, it shall issue a license in such form as shall be determined by its rules. Such license shall contain a description of the licensed premises and in form and in substance shall be a license to the person therein specifically designated to cultivate, process, distribute or dispense cannabis in the premises therein specifically licensed. 2. Except as otherwise provided in this article, a separate license shall be required for each facility at which cultivation, processing, distribution or retail dispensing is conducted. 3. An applicant shall not be denied a license under this article based solely on a conviction for a violation of article two hundred twenty or section 240.36 of the penal law, prior to the date article two hundred twenty-one of the penal law took effect, or a conviction for a violation of article two hundred twenty-one of the penal law after the effective date of this chapter. § 62. Information to be requested in applications for licenses. 1. The office shall have the authority to prescribe the manner and form in which an application must be submitted to the office for licensure under this article. 2. The executive director is authorized to adopt regulations, includ- ing by emergency rule, establishing information which must be included on an application for licensure under this article. Such information may include, but is not limited to: information about the applicant's iden- tity, including racial and ethnic diversity; ownership and investment S. 1509--A 127 A. 2009--A information, including the corporate structure; evidence of good moral character, including the submission of fingerprints by the applicant to the division of criminal justice services; information about the prem- ises to be licensed; financial statements; and any other information prescribed by in regulation. 3. All license applications shall be signed by the applicant (if an individual), by a managing partner (if a limited liability corporation), by an officer (if a corporation), or by all partners (if a partnership). Each person signing such application shall verify it or affirm it as true under the penalties of perjury. 4. All license or permit applications shall be accompanied by a check, draft or other forms of payment as the office may require or authorize in the amount required by this article for such license or permit. 5. If there be any change, after the filing of the application or the granting of a license, in any of the facts required to be set forth in such application, a supplemental statement giving notice of such change, cost and source of money involved in the change, duly verified, shall be filed with the office within ten days after such change. Failure to do so shall, if willful and deliberate, be cause for revocation of the license. 6. In giving any notice, or taking any action in reference to a regis- tered organization or licensee of a licensed premises, the office may rely upon the information furnished in such application and in any supplemental statement connected therewith, and such information may be presumed to be correct, and shall be binding upon a registered organiza- tions, licensee or licensed premises as if correct. All information required to be furnished in such application or supplemental statements shall be deemed material in any prosecution for perjury, any proceeding to revoke, cancel or suspend any license, and in the office's determi- nation to approve or deny the license. 7. The office may, in its discretion, waive the submission of any category of information described in this section for any category of license or permit, provided that it shall not be permitted to waive the requirement for submission of any such category of information solely for an individual applicant or applicants. § 63. Fees. 1. The office shall have the authority to charge appli- cants for licensure under this article a non-refundable application fee and/or to auction licenses to bidders determined by the office to be qualified for such licensure based on the selection criteria in section sixty-four of this article. Such fee may be based on the type of licen- sure sought, cultivation and/or production volume, or any other factors deemed reasonable and appropriate by the office to achieve the policy and purpose of this chapter. 2. The office shall have the authority to charge licensees a biennial license fee. Such fee shall be based on the amount of cannabis to be cultivated, processed, distributed and/or dispensed by the licensee or the gross annual receipts of the licensee for the previous license peri- od, and any other factors deemed reasonable and appropriate by the office. § 64. Selection criteria. 1. The executive director shall develop regulations for determining whether or not an applicant should be grant- ed the privilege of an adult-use cannabis license, based on, but not limited to, the following criteria: (a) the applicant will be able to maintain effective control against the illegal diversion of cannabis; S. 1509--A 128 A. 2009--A (b) the applicant will be able to comply with all applicable state laws and regulations; (c) the applicant and its officers are ready, willing, and able to properly carry on the activities for which a license is sought; (d) the applicant possesses or has the right to use sufficient land, buildings, and equipment to properly carry on the activity described in the application; (e) it is in the public interest that such license be granted, taking into consideration, but not limited to, the following criteria: (i) that it is a privilege, and not a right, to cultivate, process, distribute, and sell cannabis; (ii) the number, classes, and character of other licenses in proximity to the location and in the particular municipality or subdivision there- of; (iii) evidence that all necessary licenses and permits have been obtained from the state and all other governing bodies; (iv) effect of the grant of the license on pedestrian or vehicular traffic, and parking, in proximity to the location; (v) the existing noise level at the location and any increase in noise level that would be generated by the proposed premises; (vi) the history of violations under the alcoholic beverage control law or the cannabis law at the location, as well as any pattern of violations under the alcoholic beverage control law or the cannabis law, and reported criminal activity at the proposed premises; (vii) the effect on the production, price and availability of cannabis and cannabis products; and (viii) any other factors specified by law or regulation that are rele- vant to determine that granting a license would promote public conven- ience and advantage and the public interest of the community; (f) the applicant and its managing officers are of good moral charac- ter and do not have an ownership or controlling interest in more licenses or permits than allowed by this chapter; (g) the applicant has entered into a labor peace agreement with a bona-fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees, and the maintenance of such a labor peace agreement shall be an ongoing material condition of licensure. In evaluating applications from entities with twenty-five or more employees, the office shall give priority to applicants that are a party to a collective bargaining agreement with a bona-fide labor organization in New York or in another state, and uses union labor to construct its licensed facility; (h) the applicant will contribute to communities, the workforce and people disproportionately harmed by cannabis law enforcement; (i) if the application is for an adult-use cultivator license, the environmental impact of the facility to be licensed; and (j) the applicant satisfies any other conditions as determined by the executive director. 2. If the executive director is not satisfied that the applicant should be issued a license, the executive director shall notify the applicant in writing of the specific reason or reasons for denial. 3. The executive director shall have authority and sole discretion to determine the number of licenses issued pursuant to this article. § 65. Limitations of licensure; duration. 1. No license of any kind may be issued to a person under the age of twenty-one years, nor shall any licensee employ anyone under the age of twenty-one years. S. 1509--A 129 A. 2009--A 2. No person shall sell, deliver, or give away or cause or permit or procure to be sold, delivered or given away any cannabis to any person, actually or apparently, under the age of twenty-one years, any visibly intoxicated person, or any habitually intoxicated person known to be such by the person authorized to manufacture, traffic, or sell any cannabis. 3. The office shall have the authority to limit, by canopy, plant count, square footage or other means, the amount of cannabis allowed to be grown, processed, distributed or sold by a licensee. 4. All licenses under this article shall expire two years after the date of issue. § 66. License renewal. 1. Each license, issued pursuant to this arti- cle, may be renewed upon application therefore by the licensee and the payment of the fee for such license as prescribed by this article. In the case of applications for renewals, the office may dispense with the requirements of such statements as it deems unnecessary in view of those contained in the application made for the original license, but in any event the submission of photographs of the licensed premises shall be dispensed with, provided the applicant for such renewal shall file a statement with the office to the effect that there has been no alter- ation of such premises since the original license was issued. The office may make such rules as it deems necessary, not inconsistent with this chapter, regarding applications for renewals of licenses and permits and the time for making the same. 2. Each applicant must submit to the office documentation of the racial, ethnic, and gender diversity of the applicant's employees and owners prior to a license being renewed. In addition, the office may create a social responsibility framework agreement and make the adher- ence to such agreement a conditional requirement of license renewal. 3. The office shall provide an application for renewal of a license issued under this article not less than ninety days prior to the expira- tion of the current license. 4. The office may only issue a renewal license upon receipt of the prescribed renewal application and renewal fee from a licensee if, in addition to the criteria in this section, the licensee's license is not under suspension and has not been revoked. 5. Each applicant must maintain a labor peace agreement with a bona- fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees and the maintenance of such a labor peace agreement shall be an ongoing material condition of licensure. § 67. Amendments; changes in ownership and organizational structure. 1. Licenses issued pursuant to this article shall specify: (a) the name and address of the licensee; (b) the activities permitted by the license; (c) the land, buildings and facilities that may be used for the licensed activities of the licensee; (d) a unique license number issued by the office to the licensee; and (e) such other information as the executive director shall deem neces- sary to assure compliance with this chapter. 2. Upon application of a licensee to the office, a license may be amended to allow the licensee to relocate within the state, to add or delete licensed activities or facilities, or to amend the ownership or organizational structure of the entity that is the licensee. The fee for such amendment shall be two hundred fifty dollars. S. 1509--A 130 A. 2009--A 3. A license shall become void by a change in ownership, substantial corporate change or location without prior written approval of the exec- utive director. The executive director may promulgate regulations allow- ing for certain types of changes in ownership without the need for prior written approval. 4. For purposes of this section, "substantial corporate change" shall mean: (a) for a corporation, a change of eighty percent or more of the offi- cers and/or directors, or a transfer of eighty percent or more of stock of such corporation, or an existing stockholder obtaining eighty percent or more of the stock of such corporation; or (b) for a limited liability company, a change of eighty percent or more of the managing members of the company, or a transfer of eighty percent or more of ownership interest in said company, or an existing member obtaining a cumulative of eighty percent or more of the ownership interest in said company. § 68. Adult-use cultivator license. 1. An adult-use cultivator's license shall authorize the acquisition, possession, cultivation and sale of cannabis from the licensed premises of the adult-use cultivator by such licensee to duly licensed processors in this state. The execu- tive director may establish regulations allowing licensed adult-use cultivators to perform certain types of minimal processing without the need for an adult-use processor license. 2. For purposes of this section, cultivation shall include, but not be limited to, the planting, growing, cloning, harvesting, drying, curing, grading and trimming of cannabis. 3. A person holding an adult-use cultivator's license may apply for, and obtain, one processor's license and one distributor's license. 4. A person holding an adult-use cultivator's license may not also hold a retail dispensary license pursuant to this article and no adult- use cannabis cultivator shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, or any other means, in any premises licensed as an adult-use cannabis retail dispensary or in any business licensed as an adult-use cannabis retail dispensary pursuant to this article. 5. A person holding an adult-use cultivator's license may not hold a license to distribute cannabis under this article unless the licensed cultivator is also licensed as a processor under this article. 6. No person may have a direct or indirect financial or controlling interest in more than one adult-use cultivator license issued pursuant to this chapter. 7. The executive director shall have the authority to issue microbusi- ness cultivator licenses, allowing microbusiness licensees to cultivate, process, and distribute adult-use cannabis direct to licensed cannabis retailers, under a single license. The executive director shall estab- lish through regulation a production limit of total cannabis cultivated, processed and/or distributed annually for microbusiness cultivator licenses. § 69. Adult-use processor license. 1. A processor's license shall authorize the acquisition, possession, processing and sale of cannabis from the licensed premises of the adult-use cultivator by such licensee to duly licensed distributors. 2. For purposes of this section, processing shall include, but not be limited to, blending, extracting, infusing, packaging, labeling, brand- ing and otherwise making or preparing cannabis products. Processing shall not include the cultivation of cannabis. S. 1509--A 131 A. 2009--A 3. No processor shall be engaged in any other business on the premises to be licensed; except that nothing contained in this chapter shall prevent a cannabis cultivator, cannabis processor, and cannabis distrib- utor from operating on the same premises and from a person holding all three licenses. 4. No cannabis processor licensee may hold more than three cannabis processor licenses. 5. No adult-use cannabis processor shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, or any other means, in any premises licensed as an adult-use cannabis retail dispensary or in any business licensed as an adult-use cannabis retail dispensary pursuant to this article. § 70. Adult-use cooperative license. 1. A cooperative license shall authorize the acquisition, possession, cultivation, processing and sale from the licensed premises of the adult-use cooperative by such licensee to duly licensed distributors and/or retail dispensaries; but not directly to cannabis consumers. 2. To be licensed as an adult-use cooperative, the cooperative must: (i) be comprised of residents of the state of New York as a limited liability company or limited liability partnership under the laws of the state, or an appropriate business structure as determined by the execu- tive director; (ii) at least one member of the cooperative must have filed a Federal Schedule F (Form 1040) for three of the past five years; and (iii) the cooperative must operate according to the seven cooperative principles published by the International Cooperative Alliance in nine- teen hundred ninety-five. 3. No person shall be a member of more than one adult-use cooperative licensed pursuant to this section. 4. No person or member of an adult-use cooperative license may have a direct or indirect financial or controlling interest in any other adult-use cannabis license issued pursuant to this chapter. 5. No adult-use cannabis cooperative shall have a direct or indirect interest, including by stock ownership, interlocking directors, mortgage or lien, personal or real property, or any other means, in any premises licensed as an adult-use cannabis retail dispensary or in any business licensed as an adult-use cannabis retail dispensary pursuant to this article. 6. The executive director shall promulgate regulations governing coop- erative licenses, including, but not limited to, the establishment of canopy limits on the size and scope of cooperative licensees, and other measures designed to incentivize the use and licensure of cooperatives. § 71. Adult-use distributor license. 1. A distributor's license shall authorize the acquisition, possession, distribution and sale of cannabis from the licensed premises of a licensed adult-use processor, microbusi- ness cultivator, or registered organization authorized to sell adult-use cannabis, to duly licensed retail dispensaries. 2. No distributor shall have a direct or indirect economic interest in any adult-use retail dispensary licensed pursuant to this article, or in any registered organization registered pursuant to article three of this chapter. This restriction shall not prohibit a registered organization authorized pursuant to section forty of this chapter, from being granted licensure by the office to distribute adult-use cannabis products culti- vated and processed by the registered organization to the registered organization's own licensed adult-use retail dispensaries. S. 1509--A 132 A. 2009--A 3. Nothing in subdivision two of this section shall prevent a distrib- utor from charging an appropriate fee for the distribution of cannabis, including based on the volume of cannabis distributed. § 72. Adult-use retail dispensary license. 1. A retail dispensary license shall authorize the acquisition, possession and sale of cannabis from the licensed premises of the retail dispensary by such licensee to cannabis consumers. 2. No person may have a direct or indirect financial or controlling interest in more than three retail dispensary licenses issued pursuant to this chapter. This restriction shall not prohibit a registered organ- ization, authorized pursuant to section forty of this chapter, from being granted licensure by the office to sell adult-use cannabis at locations previously registered by the department of health and in oper- ation as of April first, two thousand nineteen; subject to any condi- tions, limitations or restrictions established by the office. 3. No person holding a retail dispensary license may also hold an adult-use cultivation, processor, microbusiness cultivator, cooperative or distributor license pursuant to this article. 4. No retail license shall be granted for any premises, unless the applicant shall be the owner thereof, or shall be in possession of said premises under a lease, management agreement or other agreement giving the applicant control over the premises, in writing, for a term not less than the license period. 5. No premises shall be licensed to sell cannabis products, unless said premises shall be located in a store, the principal entrance to which shall be from the street level and located on a public thorough- fare in premises which may be occupied, operated or conducted for busi- ness, trade or industry or on an arcade or sub-surface thoroughfare leading to a railroad terminal. 6. No cannabis retail license shall be granted for any premises where a licensee would not be allowed to sell at retail for consumption of alcohol off the premises based on its proximity to a building occupied exclusively as a school, church, synagogue or other place of worship pursuant to the provisions of section one hundred five of the alcohol beverage control law. § 73. Notification to municipalities of adult-use retail dispensary. 1. Not less than thirty days nor more than two hundred seventy days before filing an application for licensure as an adult-use cannabis retail dispensary, an applicant shall notify the municipality in which the premises is located of such applicant's intent to file such an application. 2. Such notification shall be made to the clerk of the village, town or city, as the case may be, wherein the premises is located. For purposes of this section: (a) notification need only be given to the clerk of a village when the premises is located within the boundaries of the village, town or city; and (b) in the city of New York, the community board established pursuant to section twenty-eight hundred of the New York city charter with juris- diction over the area in which the premises is located shall be consid- ered the appropriate public body to which notification shall be given. 3. Such notification shall be made in such form as shall be prescribed by the rules of the office. 4. A municipality may express an opinion for or against the granting of such application. Any such opinion shall be deemed part of the record S. 1509--A 133 A. 2009--A upon which the office makes its determination to grant or deny the application. 5. Such notification shall be made by: (a) certified mail, return receipt requested; (b) overnight delivery service with proof of mailing; or (c) personal service upon the offices of the clerk or community board. 6. The office shall require such notification to be on a standardized form that can be obtained on the internet or from the office and such notification to include: (a) the trade name or "doing business as" name, if any, of the estab- lishment; (b) the full name of the applicant; (c) the street address of the establishment, including the floor location or room number, if applicable; (d) the mailing address of the establishment, if different than the street address; (e) the name, address and telephone number of the attorney or repre- sentative of the applicant, if any; (f) a statement indicating whether the application is for: (i) a new establishment; (ii) a transfer of an existing licensed business; (iii) a renewal of an existing license; or (iv) an alteration of an existing licensed premises; (g) if the establishment is a transfer or previously licensed prem- ises, the name of the old establishment and such establishment's regis- tration or license number; (h) in the case of a renewal or alteration application, the registra- tion or license number of the applicant; and (i) the type of license. § 74. On-site consumption license; provisions governing on-site consumption licenses. 1. No licensed adult-use cannabis retail dispen- sary shall be granted a cannabis on-site consumption license for any premises, unless the applicant shall be the owner thereof, or shall be in possession of said premises under a lease, in writing, for a term not less than the license period except, however, that such license may thereafter be renewed without the requirement of a lease as provided in this section. This subdivision shall not apply to premises leased from government agencies, as defined under subdivision twenty of section three of this chapter; provided, however, that the appropriate adminis- trator of such government agency provides some form of written documen- tation regarding the terms of occupancy under which the applicant is leasing said premises from the government agency for presentation to the office at the time of the license application. Such documentation shall include the terms of occupancy between the applicant and the government agency, including, but not limited to, any short-term leasing agreements or written occupancy agreements. 2. No adult-use cannabis retail dispensary shall be granted a cannabis on-site consumption license for any premises where a license would not be allowed to sell at retail for consumption of alcohol on the premises based on its proximity to a building occupied exclusively as a school, church, synagogue or other place of worship pursuant to the provisions of section one hundred five of the alcoholic beverage control law. 3. The office may consider any or all of the following in determining whether public convenience and advantage and the public interest will be promoted by the granting of a license for an on-site cannabis consump- tion at a particular location: S. 1509--A 134 A. 2009--A (a) that it is a privilege, and not a right, to cultivate, process, distribute, and sell cannabis; (b) the number, classes, and character of other licenses in proximity to the location and in the particular municipality or subdivision there- of; (c) evidence that all necessary licenses and permits have been obtained from the state and all other governing bodies; (d) effect of the grant of the license on pedestrian or vehicular traffic, and parking, in proximity to the location; (e) the existing noise level at the location and any increase in noise level that would be generated by the proposed premises; (f) the history of violations under the alcoholic beverage control law or this chapter at the location, as well as any pattern of violations under the alcoholic beverage control law or this chapter, and reported criminal activity at the proposed premises; and (g) any other factors specified by law or regulation that are relevant to determine that granting a license would promote public convenience and advantage and the public interest of the community; 4. If the office shall disapprove an application for an on-site consumption license, it shall state and file in its offices the reasons therefor and shall notify the applicant thereof. Such applicant may thereupon apply to the office for a review of such action in a manner to be prescribed by the rules of the office. 5. No adult-use cannabis on-site consumption licensee shall keep upon the licensed premises any adult-use cannabis products except those purchased from a licensed distributor, microbusiness cultivator or registered organization authorized to sell adult-use cannabis, and only in containers approved by the office. Such containers shall have affixed thereto such labels as may be required by the rules of the office. No cannabis retail licensee for on-site consumption shall reuse, refill, tamper with, adulterate, dilute or fortify the contents of any container of cannabis products as received from the manufacturer or distributor. 6. No cannabis on-site consumption licensee shall sell, deliver or give away, or cause or permit or procure to be sold, delivered or given away any cannabis for consumption on the premises where sold in a container or package containing more than one gram of cannabis. 7. Except where a permit to do so is obtained pursuant to section 405.10 of the penal law, no cannabis on-site consumption licensee shall suffer, permit, or promote an event on its premises wherein any person shall use, explode, or cause to explode, any fireworks or other pyro- technics in a building as defined in paragraph e of subdivision one of section 405.10 of the penal law, that is covered by such license or possess such fireworks or pyrotechnics for such purpose. In addition to any other penalty provided by law, a violation of this subdivision shall constitute an adequate ground for instituting a proceeding to suspend, cancel, or revoke the license of the violator in accordance with the applicable procedures specified in this chapter; provided however, if more than one licensee is participating in a single event, upon approval by the office, only one licensee must obtain such permit. 8. No premises licensed to sell adult-use cannabis for on-site consumption under this chapter shall be permitted to have any opening or means of entrance or passageway for persons or things between the licensed premises and any other room or place in the building containing the licensed premises, or any adjoining or abutting premises, unless ingress and egress is restricted by an employee, agent of the licensee, S. 1509--A 135 A. 2009--A or other method approved by the office of controlling access to the facility. 9. Each cannabis on-site consumption licensee shall keep and maintain upon the licensed premises, adequate records of all transactions involv- ing the business transacted by such licensee which shall show the amount of cannabis products, in an applicable metric measurement, purchased by such licensee together with the names, license numbers and places of business of the persons from whom the same were purchased, the amount involved in such purchases, as well as the sales of cannabis products made by such licensee. The office is hereby authorized to promulgate rules and regulations permitting an on-site licensee operating two or more premises separately licensed to sell cannabis products for on-site consumption to inaugurate or retain in this state methods or practices of centralized accounting, bookkeeping, control records, reporting, billing, invoicing or payment respecting purchases, sales or deliveries of cannabis products, or methods and practices of centralized receipt or storage of cannabis products within this state without segregation or earmarking for any such separately licensed premises, wherever such methods and practices assure the availability, at such licensee's central or main office in this state, of data reasonably needed for the enforcement of this chapter. Such records shall be available for inspection by any authorized representative of the office. 10. All retail licensed premises shall be subject to inspection by any peace officer, acting pursuant to his or her special duties, or police officer and by the duly authorized representatives of the office, during the hours when the said premises are open for the transaction of busi- ness. 11. A cannabis on-site consumption licensee shall not provide cannabis products to any person under the age of twenty-one or to anyone visibly intoxicated. § 75. Record keeping and tracking. 1. The executive director shall, by regulation, require each licensee pursuant to this article to adopt and maintain security, tracking, record keeping, record retention and surveillance systems, relating to all cannabis at every stage of acquir- ing, possession, manufacture, sale, delivery, transporting, or distrib- uting by the licensee, subject to regulations of the executive director. 2. Every licensee shall keep and maintain upon the licensed premises adequate books and records of all transactions involving the licensee and sale of its products, which shall include, but is not limited to, all information required by any rules promulgated by the office. 3. Each sale shall be recorded separately on a numbered invoice, which shall have printed thereon the number, the name of the licensee, the address of the licensed premises, and the current license number. Licensed producers shall deliver to the licensed distributor a true duplicate invoice stating the name and address of the purchaser, the quantity purchased, description and the price of the product, and a true, accurate and complete statement of the terms and conditions on which such sale is made. 4. Such books, records and invoices shall be kept for a period of five years and shall be available for inspection by any authorized represen- tative of the office. 5. Each adult-use cannabis retail dispensary and on-site consumption licensee shall keep and maintain upon the licensed premises, adequate records of all transactions involving the business transacted by such licensee which shall show the amount of cannabis, in weight, purchased by such licensee together with the names, license numbers and places of S. 1509--A 136 A. 2009--A business of the persons from whom the same were purchased, the amount involved in such purchases, as well as the sales of cannabis made by such licensee. § 76. Inspections and ongoing requirements. All licensed or permitted premises, regardless of the type of premises, shall be subject to inspection by the office, by the duly authorized representatives of the office, by any peace officer acting pursuant to his or her special duties, or by a police officer, during the hours when the said premises are open for the transaction of business. The office shall make reason- able accommodations so that ordinary business is not interrupted and safety and security procedures are not compromised by the inspection. A person who holds a license or permit must make himself or herself, or an agent thereof, available and present for any inspection required by the office. Such inspection may include, but is not limited to, ensuring compliance by the licensee or permittee with all other applicable build- ing codes, fire, health, safety, and governmental regulations, including at the municipal, county, and state level. § 77. Adult-use cultivators, processors or distributors not to be interested in retail dispensaries. 1. It shall be unlawful for a culti- vator, processor, cooperative or distributor licensed under this article to: (a) be interested directly or indirectly in any premises where any cannabis product is sold at retail; or in any business devoted wholly or partially to the sale of any cannabis product at retail by stock owner- ship, interlocking directors, mortgage or lien or any personal or real property, or by any other means. (b) make, or cause to be made, any loan to any person engaged in the manufacture or sale of any cannabis product at wholesale or retail. (c) make any gift or render any service of any kind whatsoever, directly or indirectly, to any person licensed under this chapter which in the judgment of the office may tend to influence such licensee to purchase the product of such cultivator or processor or distributor. (d) enter into any contract with any retail licensee whereby such licensee agrees to confine his sales to cannabis products manufactured or sold by one or more such cultivator or processors or distributors. Any such contract shall be void and subject the licenses of all parties concerned to revocation for cause. 2. The provisions of this section shall not prohibit a registered organization authorized pursuant to section forty of this chapter, from cultivating, processing, distributing and selling adult-use cannabis under this article, at facilities wholly owned and operated by such registered organization, subject to any conditions, limitations or restrictions established by the office. 3. The office shall have the power to create rules and regulations in regard to this section. § 78. Packaging and labeling of adult-use cannabis products. 1. The office is hereby authorized to promulgate rules and regulations govern- ing the packaging and labeling of cannabis products, sold or possessed for sale in New York state. 2. Such regulations shall include, but not be limited to, requiring that: (a) packaging meets requirements similar to the federal "poison prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.; (b) all cannabis-infused products shall have a separate packaging for each serving; S. 1509--A 137 A. 2009--A (c) prior to delivery or sale at a retailer, cannabis and cannabis products shall be labeled and placed in a resealable, child-resistant package; and (d) packages and labels shall not be made to be attractive to minors. 3. Such regulations shall include requiring labels warning consumers of any potential impact on human health resulting from the consumption of cannabis products that shall be affixed to those products when sold, if such labels are deemed warranted by the office. 4. Such rules and regulations shall establish methods and procedures for determining serving sizes for cannabis-infused products, active cannabis concentration per serving size, and number of servings per container. Such regulations shall also require a nutritional fact panel that incorporates data regarding serving sizes and potency thereof. 5. The packaging, sale, or possession by any licensee of any cannabis product not labeled or offered in conformity with rules and regulations promulgated in accordance with this section shall be grounds for the imposition of a fine, and/or the suspension, revocation or cancellation of a license. § 79. Laboratory testing. 1. Every processor of adult-use cannabis shall contract with an independent laboratory permitted pursuant to section one hundred twenty-nine of this chapter, to test the cannabis products it produces pursuant to rules and regulations prescribed by the office. The executive director may assign an approved testing laborato- ry, which the processor of adult-use cannabis must use. 2. Adult-use cannabis processors shall make laboratory test reports available to licensed distributors and retail dispensaries for all cannabis products manufactured by the processor. 3. Licensed retail dispensaries shall maintain accurate documentation of laboratory test reports for each cannabis product offered for sale to cannabis consumers. Such documentation shall be made publicly available by the licensed retail dispensary. 4. Onsite laboratory testing by licensees is permissible; however, such testing shall not be certified by the office and does not exempt the licensee from the requirements of quality assurance testing at a testing laboratory pursuant to this section. 5. An owner of a cannabis laboratory testing permit shall not hold a license in any other category within this article and shall not own or have ownership interest in a registered organization registered pursuant to article three of this chapter. 6. The office shall have the authority to require any licensee under this article to submit cannabis or cannabis products to one or more independent laboratories for testing. § 80. Provisions governing the cultivation and processing of adult-use cannabis. 1. Cultivation of cannabis must not be visible from a public place by normal unaided vision. 2. No cultivator or processor of adult-use cannabis shall sell, or agree to sell or deliver in the state any cannabis products, as the case may be, except in sealed containers containing quantities in accordance with size standards pursuant to rules adopted by the office. Such containers shall have affixed thereto such labels as may be required by the rules of the office. 3. No cultivator or processor of adult-use cannabis shall furnish or cause to be furnished to any licensee, any exterior or interior sign, printed, painted, electric or otherwise, except as authorized by the office. The office may make such rules as it deems necessary to carry out the purpose and intent of this subdivision. S. 1509--A 138 A. 2009--A 4. Cultivators of adult-use cannabis shall only use pesticides that are registered by the department of environmental conservation or that specifically meet the United States environmental protection agency registration exemption criteria for minimum risk pesticides, and only in compliance with regulations, standards and guidelines issued by the department of environmental conservation. 5. No cultivator or processor of adult-use cannabis shall transport cannabis products in any vehicle owned and operated or hired and oper- ated by such cultivator or processor, unless there shall be attached to or inscribed upon both sides of such vehicle a sign, showing the name and address of the licensee, together with the following inscription: "New York State Cannabis Cultivator (or Processor) License No. _____" in uniform letters not less than three and one-half inches in height. In lieu of such sign a cultivator or processor may have in the cab of such vehicle a photostatic copy of its current license issued by the office, and such copy duly authenticated by the office. 6. No cultivator or processor of adult-use cannabis shall deliver any cannabis products, except in vehicles owned and operated by such culti- vator, processor, or hired and operated by such cultivator or processor from a trucking or transportation company registered with the office, and shall only make deliveries at the licensed premises of the purchas- er. 7. No cultivator or processor of adult-use cannabis, including an adult-use cannabis cooperative or microbusiness cultivator, may offer any incentive, payment or other benefit to a licensed cannabis retail dispensary in return for carrying the cultivator, processor, cooperative or microbusiness cultivator's products, or preferential shelf placement. 8. All cannabis products shall be processed in accordance with good manufacturing processes, pursuant to Part 111 of Title 21 of the Code of Federal Regulations, as may be modified by the executive director in regulation. 9. No processor of adult-use cannabis shall produce any product which, in the discretion of the office, is designed to appeal to anyone under the age of twenty-one years. 10. The use or integration of alcohol or nicotine in cannabis products is strictly prohibited. § 81. Provisions governing the distribution of adult-use cannabis. 1. No distributor shall sell, or agree to sell or deliver any cannabis products, as the case may be, in any container, except in a sealed pack- age. Such containers shall have affixed thereto such labels as may be required by the rules of the office. 2. No distributor shall deliver any cannabis products, except in vehi- cles owned and operated by such distributor, or hired and operated by such distributor from a trucking or transportation company registered with the office, and shall only make deliveries at the licensed premises of the purchaser. 3. Each distributor shall keep and maintain upon the licensed prem- ises, adequate books and records of all transactions involving the busi- ness transacted by such distributor, which shall show the amount of cannabis products purchased by such distributor together with the names, license numbers and places of business of the persons from whom the same was purchased and the amount involved in such purchases, as well as the amount of cannabis products sold by such distributor together with the names, addresses, and license numbers of such purchasers. Each sale shall be recorded separately on a numbered invoice, which shall have printed thereon the number, the name of the licensee, the address of the S. 1509--A 139 A. 2009--A licensed premises, and the current license number. Such distributor shall deliver to the purchaser a true duplicate invoice stating the name and address of the purchaser, the quantity of cannabis products, description by brands and the price of such cannabis products, and a true, accurate and complete statement of the terms and conditions on which such sale is made. Such books, records and invoices shall be kept for a period of five years and shall be available for inspection by any authorized representative of the office. 4. No distributor shall furnish or cause to be furnished to any licen- see, any exterior or interior sign, printed, painted, electric or other- wise, unless authorized by the office. 5. No distributor shall provide any discount, rebate or customer loyalty program to any licensed retailer, except as otherwise allowed by the office. 6. The executive director is authorized to promulgate regulations establishing a maximum margin for which a distributor may mark up a cannabis product for sale to a retail dispensary. Any adult-use cannabis product sold by a distributor for more than the maximum markup allowed in regulation, shall be unlawful. 7. Each distributor shall keep and maintain upon the licensed prem- ises, adequate books and records to demonstrate the distributor's actual cost of doing business, using accounting standards and methods regularly employed in the determination of costs for the purpose of federal income tax reporting, for the total operation of the licensee. Such books, records and invoices shall be kept for a period of five years and shall be available for inspection by any authorized representative of the office for use in determining the maximum markup allowed in regulation pursuant to subdivision six of this section. § 82. Provisions governing adult-use cannabis retail dispensaries. 1. No cannabis retail licensee shall sell, deliver, or give away or cause or permit or procure to be sold, delivered or given away any cannabis to any person, actually or apparently, under the age of twenty-one years, any visibly intoxicated person, or any habitually intoxicated person known to be such by the person authorized to sell, deliver, or give away any cannabis. 2. No cannabis retail licensee shall sell more than one ounce of cannabis per cannabis consumer per day; nor more than five grams of cannabis concentrate per cannabis consumer per day. 3. No cannabis retail licensee shall sell alcoholic beverages, nor have or possess a license or permit to sell alcoholic beverages, on the same premises where cannabis products are sold. 4. No sign of any kind printed, painted or electric, advertising any brand shall be permitted on the exterior or interior of such premises, except by permission of the office. 5. No cannabis retail licensee shall sell or deliver any cannabis products to any person with knowledge of, or with reasonable cause to believe, that the person to whom such cannabis products are being sold, has acquired the same for the purpose of peddling them from place to place, or of selling or giving them away in violation of the provisions of this chapter or in violation of the rules and regulations of the office. 6. All premises licensed under this section shall be subject to inspection by any peace officer described in subdivision four of section 2.10 of the criminal procedure law acting pursuant to his or her special duties, or police officer or any duly authorized representative of the S. 1509--A 140 A. 2009--A office, during the hours when the said premises are open for the trans- action of business. 7. No cannabis retail licensee shall be interested, directly or indi- rectly, in any cultivator, processor or distributor licensed pursuant to this article, by stock ownership, interlocking directors, mortgage or lien on any personal or real property or by any other means. Any lien, mortgage or other interest or estate, however, now held by such retailer on or in the personal or real property of such manufacturer or distribu- tor, which mortgage, lien, interest or estate was acquired on or before December thirty-first, two thousand eighteen, shall not be included within the provisions of this subdivision; provided, however, the burden of establishing the time of the accrual of the interest comprehended by this subdivision, shall be upon the person who claims to be entitled to the protection and exemption afforded hereby. 8. No cannabis retail licensee shall make or cause to be made any loan to any person engaged in the cultivation, processing or distribution of cannabis pursuant to this article. 9. Each cannabis retail licensee shall designate the price of each item of cannabis by attaching to or otherwise displaying immediately adjacent to each such item displayed in the interior of the licensed premises where sales are made a price tag, sign or placard setting forth the price at which each such item is offered for sale therein. 10. No person licensed to sell cannabis products at retail, shall allow or permit any gambling, or offer any gambling on the licensed premises, or allow or permit illicit drug activity on the licensed prem- ises. The use of the licensed premises or any part thereof for the sale of lottery tickets, when duly authorized and lawfully conducted thereon, shall not constitute gambling within the meaning of this subdivision. 11. If an employee of a cannabis retail licensee suspects that a cannabis consumer may be abusing cannabis, such an employee shall encourage such cannabis consumer to seek the help of a registered prac- titioner and become a certified patient. Cannabis retail licensees shall develop standard operating procedures and written materials for employ- ees to utilize when consulting consumers for purposes of this subdivi- sion. 12. The executive director is authorized to promulgate regulations governing licensed adult-use dispensing facilities, including but not limited to, the hours of operation, size and location of the licensed facility, potency and types of products offered and establishing a mini- mum margin for which a retail dispensary must markup a cannabis product(s) before selling to a cannabis consumer. Any adult-use cannabis product sold by a retail dispensary for less than the minimum markup allowed in regulation, shall be unlawful. § 83. Adult-use cannabis advertising. 1. The office is hereby author- ized to promulgate rules and regulations governing the advertising of licensed adult-use cannabis cultivators, processors, cooperatives, distributors, retailers, and any cannabis products or services. 2. The office shall promulgate explicit rules prohibiting advertising that: (a) is false, deceptive, or misleading; (b) promotes overconsumption; (c) depicts consumption by children or other minors; (d) is designed in any way to appeal to children or other minors; (e) is within two hundred feet of the perimeter of a school grounds, playground, child care center, public park, or library; (f) is in public transit vehicles and stations; S. 1509--A 141 A. 2009--A (g) is in the form of an unsolicited internet pop-up; (h) is on publicly owned or operated property; or (i) makes medical claims or promotes adult-use cannabis for a medical or wellness purpose. 3. The office shall promulgate explicit rules prohibiting all market- ing strategies and implementation including, but not limited to, brand- ing, packaging, labeling, location of cannabis retailers, and advertise- ments that are designed to: (a) appeal to persons less then twenty-one years of age; or (b) disseminate false or misleading information to customers. 4. The office shall promulgate explicit rules requiring that: (a) all advertisements and marketing accurately and legibly identify the licensee responsible for its content; and (b) any broadcast, cable, radio, print and digital communications advertisements only be placed where the audience is reasonably expected to be twenty-one years of age or older, as determined by reliable, up-to-date audience composition data. § 84. Minority, women-owned businesses and disadvantaged farmers; incubator program. 1. The office shall implement a social and economic equity plan and actively promote racial, ethnic, and gender diversity when issuing licenses for adult-use cannabis related activities, includ- ing by prioritizing consideration of applications by applicants who qualify as a minority and women-owned business or disadvantaged farmers. Such qualifications shall be determined by the office in regulation. 2. The office shall create a social and economic equity plan to promote diversity in ownership and employment in the adult-use cannabis industry and ensure inclusion of: (a) minority-owned businesses; (b) women-owned businesses; (c) minority and women-owned businesses, as defined in subdivision five of this section; and (d) disadvantaged farmers, as defined in subdivision five of this section. 3. The social and economic equity plan shall consider additional criteria in its licensing determinations. Under the social and economic equity plan, extra weight shall be given to applications that demon- strate that an applicant: (a) is a member of a community group that has been disproportionately impacted by the enforcement of cannabis prohibition; (b) has an income lower than eighty percent of the median income of the county in which the applicant resides; and (c) was convicted of a cannabis-related offense prior to the effective date of this chapter. 4. The office shall also create an incubator program to provide direct support to social and economic equity applicants after they have been granted licenses. The program shall provide direct support in the form of counseling services, education, small business coaching, and compli- ance assistance. 5. For the purposes of this section, the following definitions shall apply: (a) "minority-owned business" shall mean a business enterprise, including a sole proprietorship, partnership, limited liability company or corporation that is: (i) at least fifty-one percent owned by one or more minority group members; S. 1509--A 142 A. 2009--A (ii) an enterprise in which such minority ownership is real, substan- tial and continuing; (iii) an enterprise in which such minority ownership has and exercises the authority to control independently the day-to-day business decisions of the enterprise; (iv) an enterprise authorized to do business in this state and inde- pendently owned and operated; and (v) an enterprise that is a small business. (b) "minority group member" shall mean a United States citizen or permanent resident alien who is and can demonstrate membership in one of the following groups: (i) black persons having origins in any of the black African racial groups; (ii) Hispanic persons of Mexican, Puerto Rican, Dominican, Cuban, Central or South American of either Indian or Hispanic origin, regard- less of race; (iii) Native American or Alaskan native persons having origins in any of the original peoples of North America; or (iv) Asian and Pacific Islander persons having origins in any of the far east countries, south east Asia, the Indian subcontinent or the Pacific islands. (c) "women-owned business" shall mean a business enterprise, including a sole proprietorship, partnership, limited liability company or corpo- ration that is: (i) at least fifty-one percent owned by one or more United States citizens or permanent resident aliens who are women; (ii) an enterprise in which the ownership interest of such women is real, substantial and continuing; (iii) an enterprise in which such women ownership has and exercises the authority to control independently the day-to-day business decisions of the enterprise; (iv) an enterprise authorized to do business in this state and inde- pendently owned and operated; and (v) an enterprise that is a small business. (d) a firm owned by a minority group member who is also a woman may be defined as a minority-owned business, a women-owned business, or both. (e) "disadvantaged farmer" shall mean a New York state resident or business enterprise, including a sole proprietorship, partnership, limited liability company or corporation, that has reported at least two-thirds of its federal gross income as income from farming, in at least one of the past five preceding tax years, and who: (i) farms in a county that has greater than ten percent rate of pover- ty according to the latest U.S. Census Bureau's American Communities Survey; (ii) has been disproportionately impacted by low commodity prices or faces the loss of farmland through development or suburban sprawl; and (iii) meets any other qualifications as defined in regulation by the office. 6. The office shall actively promote applicants that foster racial, ethnic, and gender diversity in their workforce. 7. Licenses issued to minority and women-owned businesses or under the social and economic equity plan shall not be transferable except to qualified minority and women-owned businesses or social and economic equity applicants and only upon prior written approval of the executive director. S. 1509--A 143 A. 2009--A 8. The office shall collect demographic data on owners and employees in the adult-use cannabis industry and shall annually publish such data. § 85. Regulations. The executive director shall make regulations to implement this article. ARTICLE 5 HEMP CANNABIS Section 90. Cannabinoid related hemp cannabis licensing. 91. Cannabinoid grower licenses. 92. Cannabinoid extractor license. 93. Cannabinoid license applications. 94. Information to be requested in applications for licenses. 95. Fees. 96. Selection criteria. 97. Limitations of licensure; duration. 98. License renewal. 99. Form of license. 100. Amendments to license and duty to update information submitted for licensing. 101. Record keeping and tracking. 102. Inspections and ongoing requirements. 103. Packaging and labeling of hemp cannabis. 104. Provisions governing the growing and extracting of hemp cannabis. 105. Laboratory testing. 106. Advertising. 107. Research. 108. Regulations. § 90. Cannabinoid related hemp cannabis licensing. 1. Persons grow- ing, processing, extracting, and/or manufacturing hemp cannabis or producing hemp cannabis products distributed, sold or marketed for cannabinoid content and used or intended for human or animal consumption or use, shall be required to obtain the following license or licenses from the office, depending upon the operation: (a) cannabinoid grower license and/or; (b) cannabinoid extractor license. 2. Notwithstanding subsection one of this section, those persons grow- ing, processing or manufacturing food or food ingredients from hemp, which food or food ingredients are generally recognized as safe, shall be subject to regulation and/or licensing under the agriculture and markets law. § 91. Cannabinoid grower licenses. 1. A cannabinoid grower's license authorizes the acquisition, possession, cultivation and sale of hemp cannabis grown or used for its cannabinoid content on the licensed prem- ises of the grower. 2. A person holding a cannabinoid grower's license shall not sell hemp products marketed, distributed or sold for its cannabinoid content and intended for human consumption or use without also being licensed as an extractor pursuant to this article. 3. Persons growing industrial hemp pursuant to article twenty-nine of the agriculture and markets law are not authorized to and shall not sell hemp cannabis for human or animal consumption or use, other than as food or a food ingredient that has been generally recognized as safe in accordance with the U.S. food and drug administration or determined by the state to be safe for human consumption as food or a food ingredient. S. 1509--A 144 A. 2009--A 4. A person licensed under article twenty-nine of the agriculture and markets law as an industrial hemp grower may apply for a cannabinoid grower's license provided that it can demonstrate to the office that its cultivation of industrial hemp meets all the requirements for hemp cannabis cultivated under a cannabinoid grower's license. § 92. Cannabinoid extractor license. 1. A cannabinoid extractor license authorizes the licensee's acquisition, possession, extraction and manufacture of hemp from a licensed cannabinoid grower for the proc- essing of hemp cannabis or the production of hemp cannabis products marketed, distributed or sold for cannabinoid content and used or intended for human or animal consumption or use. 2. No cannabinoid extractor licensee shall engage in any other busi- ness on the licensed premises; except that nothing contained in this chapter shall prevent a cannabinoid extractor licensee from also being licensed as a cannabinoid grower on the same premises. 3. Notwithstanding subdivisions one and two of this section, nothing shall prevent a cannabinoid extractor from manufacturing hemp products not used or intended for human or animal consumption or use. § 93. Cannabinoid license applications. 1. Persons shall apply for a cannabinoid grower license and/or a cannabinoid extractor license by submitting an application upon a form supplied by the office, providing all the requested information, verified by the applicant or an author- ized representative of the applicant. 2. A separate license shall be required for each facility at which growing or extracting is conducted. 3. Each application shall remit with its application the fee for each requested license. § 94. Information to be requested in applications for licenses. 1. The office shall have the authority to prescribe the manner and form in which an application must be submitted to the office for licensure under this article. 2. The executive director is authorized to adopt regulations, includ- ing by emergency rule, establishing information which must be included on an application for licensure under this article. Such information may include, but is not limited to: information about the applicant's iden- tity, including racial and ethnic diversity; ownership and investment information, including the corporate structure; evidence of good moral character, including the submission of fingerprints by the applicant to the division of criminal justice services; information about the prem- ises to be licensed; financial statements; and any other information prescribed by in regulation. 3. All license applications shall be signed by the applicant (if an individual), by a managing partner (if a limited liability corporation), by an officer (if a corporation), or by all partners (if a partnership). Each person signing such application shall verify it or affirm it as true under the penalties of perjury. 4. All license or permit applications shall be accompanied by a check, draft or other forms of payment as the office may require or authorize in the amount required by this article for such license or permit. 5. If there be any change, after the filing of the application or the granting of a license, in any of the facts required to be set forth in such application, a supplemental statement giving notice of such change, cost and source of money involved in the change, duly verified, shall be filed with the office within ten days after such change. Failure to do so shall, if willful and deliberate, be cause for revocation of the license. S. 1509--A 145 A. 2009--A 6. In giving any notice, or taking any action in reference to a licen- see of a licensed premises, the office may rely upon the information furnished in such application and in any supplemental statement connected therewith, and such information may be presumed to be correct, and shall be binding upon a registered organization, licensee or licensed premises as if correct. All information required to be furnished in such application or supplemental statements shall be deemed material in any prosecution for perjury, any proceeding to revoke, cancel or suspend any license, and in the office's determination to approve or deny the license. 7. The office may, in its discretion, waive the submission of any category of information described in this section for any category of license or permit, provided that it shall not be permitted to waive the requirement for submission of any such category of information solely for an individual applicant or applicants. § 95. Fees. The office shall have the authority to charge licensees a biennial license fee. Such fee may be based on the amount of hemp canna- bis to be grown, processed or extracted by the licensee, the gross annu- al receipts of the licensee for the previous license period, or any other factors deemed appropriate by the office. § 96. Selection criteria. 1. An applicant shall furnish evidence: (a) its ability to effectively maintain a delta-9-tetrahydrocannabinol concentration that does not exceed a percentage of delta-9-tetrahydro- cannabinol cannabis set by the executive director on a dry weight basis of any part of the plant of the genus cannabis, or per volume or weight of cannabis product, or the combined percent of delta-9-tetrahydrocanna- binol and tetrahydrocannabinolic acid in any part of the plant of the genus cannabis regardless of moisture content, for all hemp cannabis and hemp derived products cultivated, processed or extracted by the appli- cant; (b) its ability to comply with all applicable state laws and regu- lations, including, without limitation, the provisions of article four- teen of the agriculture and markets law; (c) that the applicant is ready, willing and able to properly carry on the activities for which a license is sought; and (d) that the applicant is in possession of or has the right to use land, buildings and equipment sufficient to properly carry on the activ- ity described in the application. 2. The office, in considering whether to grant the license applica- tion, shall consider whether: (a) it is in the public interest that such license be granted, taking into consideration whether the number of licenses will be adequate or excessive to reasonably serve demand; (b) the applicant and its managing officers are of good moral charac- ter and do not have an ownership or controlling interest in more licenses or permits than allowed by this chapter; and (c) the applicant satisfies any other conditions as determined by the office. 3. If the executive director is not satisfied that the applicant should be issued a license, the executive director shall notify the applicant in writing of the specific reason or reasons for denial. 4. The executive director shall have authority and sole discretion to determine the number of licenses issued pursuant to this article. § 97. Limitations of licensure; duration. 1. No license pursuant to this article may be issued to a person under the age of twenty-one years. S. 1509--A 146 A. 2009--A 2. The office shall have the authority to limit, by canopy, plant count or other means, the amount of hemp cannabis allowed to be culti- vated, processed, extracted or sold by a licensee. 3. All licenses under this article shall expire two years after the date of issue and be subject to any rules or limitations prescribed by the executive director in regulation. § 98. License renewal. 1. Each license, issued pursuant to this arti- cle, may be renewed upon application therefor by the licensee and the payment of the fee for such license as prescribed by this article. 2. In the case of applications for renewals, the office may dispense with the requirements of such statements as it deems unnecessary in view of those contained in the application made for the original license, but in any event the submission of photographs of the licensed premises shall be dispensed with, provided the applicant for such renewal shall file a statement with the office to the effect that there has been no alteration of such premises since the original license was issued. 3. The office may make such rules as may be necessary, not inconsist- ent with this chapter, regarding applications for renewals of licenses and permits and the time for making the same. 4. The office shall provide an application for renewal of a license issued under this article not less than ninety days prior to the expira- tion of the current license. 5. The office may only issue a renewal license upon receipt of the prescribed renewal application and renewal fee from a licensee if, in addition to the criteria in section ninety-four of this article, the license's license is not under suspension and has not been revoked. 6. The office shall have the authority to charge applicants for licen- sure under this article a non-refundable application fee. Such fee may be based on the type of licensure sought, cultivation and/or production volume, or any other factors deemed reasonable and appropriate by the office to achieve the policy and purpose of this chapter. § 99. Form of license. Licenses issued pursuant to this article shall specify: 1. the name and address of the licensee; 2. the activities permitted by the license; 3. the land, buildings and facilities that may be used for the licensed activities of the licensee; 4. a unique license number issued by the office to the licensee; and 5. such other information as the executive director shall deem neces- sary to assure compliance with this chapter. § 100. Amendments to license and duty to update information submitted for licensing. 1. Upon application of a licensee to the office, a license may be amended to allow the licensee to relocate within the state, to add or delete licensed activities or facilities, or to amend the ownership or organizational structure of the entity that is the licensee. The fee for such amendment shall be two hundred fifty dollars. 2. In the event that any of the information provided by the applicant changes either while the application is pending or after the license is granted, within ten days of any such change, the applicant or licensee shall submit to the office a verified statement setting forth the change in circumstances of facts set forth in the application. Failure to do so shall, if willful and deliberate, be cause for revocation of the license. 3. A license shall become void by a change in ownership, substantial corporate change or location without prior written approval of the exec- utive director. The executive director may promulgate regulations S. 1509--A 147 A. 2009--A allowing for certain types of changes in ownership without the need for prior written approval. 4. For purposes of this section, "substantial corporate change" shall mean: (a) for a corporation, a change of eighty percent or more of the offi- cers and/or directors, or a transfer of eighty percent or more of stock of such corporation, or an existing stockholder obtaining eighty percent or more of the stock of such corporation; and (b) for a limited liability company, a change of eighty percent or more of the managing members of the company, or a transfer of eighty percent or more of ownership interest in said company, or an existing member obtaining a cumulative of eighty percent or more of the ownership interest in said company. § 101. Record keeping and tracking. 1. The executive director shall, by regulation, require each licensee pursuant to this article to adopt and maintain security, tracking, record keeping, record retention and surveillance systems, relating to all hemp cannabis at every stage of acquiring, possession, manufacture, transport, sale, or delivery, or distribution by the licensee, subject to regulations of the executive director. 2. Every licensee shall keep and maintain upon the licensed premises, adequate books and records of all transactions involving the licensee and sale of its products, which shall include all information required by rules promulgated by the office. 3. Each sale shall be recorded separately on a numbered invoice, which shall have printed thereon the number, the name of the licensee, the address of the licensed premises, and the current license number. 4. Such books, records and invoices shall be kept for a period of five years and shall be available for inspection by any authorized represen- tative of the office. § 102. Inspections and ongoing requirements. All licensees shall be subject to reasonable inspection by the office, and a person who holds a license must make himself or herself, or an agent thereof, available and present for any inspection required by the office. The office shall make reasonable accommodations so that ordinary business is not interrupted and safety and security procedures are not compromised by the inspection. § 103. Packaging and labeling of hemp cannabis. 1. The office is hereby authorized to promulgate rules and regulations governing the packaging and labeling of hemp cannabis products, sold or possessed for sale in New York state. 2. Such regulations shall include, but not be limited to, requiring labels warning consumers of any potential impact on human health result- ing from the consumption of hemp cannabis products that shall be affixed to those products when sold, if such labels are deemed warranted by the office. 3. Such rules and regulations shall establish methods and procedures for determining, among other things, serving sizes for hemp cannabis products, active cannabinoid concentration per serving size, and number of servings per container. Such regulations shall also require a nutri- tional fact panel that incorporates data regarding serving sizes and potency thereof. 4. The packaging, sale, or possession by any licensee of any hemp product intended for human or animal consumption or use not labeled or offered in conformity with rules and regulations promulgated in accord- S. 1509--A 148 A. 2009--A ance with this section shall be grounds for the imposition of a fine, and/or the suspension, revocation or cancellation of a license. § 104. Provisions governing the growing and extracting of hemp canna- bis. 1. No licensed cannabinoid grower or extractor shall sell, or agree to sell or deliver in the state any hemp cannabis products, as the case may be, except in sealed containers containing quantities in accordance with size standards pursuant to rules adopted by the office. Such containers shall have affixed thereto such labels as may be required by the rules of the office. 2. Licensed cannabinoid growers shall only use pesticides that are registered by the New York state department of environmental conserva- tion or that specifically meet the United States Environmental Protection Agency registration exemption criteria for minimum risk pesticides, and only in compliance with regulations, standards and guidelines issued by the department of environmental conservation. 3. All hemp cannabis products shall be extracted and manufactured in accordance with good manufacturing processes, pursuant to Part 111 of Title 21 of the Code of Federal Regulations as may be modified by the executive director in regulation. 4. The use or integration of alcohol or nicotine in hemp cannabis products is strictly prohibited. § 105. Laboratory testing. 1. Every cannabinoid extractor shall contract with an independent laboratory to test the cannabis products produced by the licensed extractor. The executive director, in consulta- tion with the commissioner of health, shall approve the laboratory and require that the laboratory report testing results in a manner deter- mined by the executive director. The executive director is authorized to issue regulations requiring the laboratory to perform certain tests and services. 2. Cannabinoid extractors shall make laboratory test reports available to persons holding a cannabinoid permit pursuant to article six of this chapter for all cannabis products manufactured by the licensee. 3. On-site laboratory testing by licensees is permissible; however, such testing shall not be certified by the office and does not exempt the licensee from the requirements of quality assurance testing at a testing laboratory pursuant to this section. § 106. Advertising. The office shall promulgate rules and regulations governing the advertising of hemp cannabis and any other related products or services as determined by the executive director. § 107. Research. 1. The office shall promote research and development through public-private partnerships to bring new hemp cannabis and industrial hemp derived products to market within the state. 2. The executive director may develop and carry out research programs relating to industrial hemp and hemp cannabis. § 108. Regulations. The executive director shall make regulations to implement this article. ARTICLE 6 GENERAL PROVISIONS Section 125. General prohibitions and restrictions. 126. License to be confined to premises licensed; premises for which no license shall be granted; transporting cannabis. 127. Protections for the use of cannabis; unlawful discrimi- nations prohibited. 128. Registrations and licenses. S. 1509--A 149 A. 2009--A 129. Laboratory testing permit. 130. Special use permits. 131. Professional and medical record keeping. 132. County opt-out; municipal control and preemption. 133. Executive director to be necessary party to certain proceedings. 134. Penalties for violation of this chapter. 135. Revocation of registrations, licenses and permits for cause; procedure for revocation or cancellation. 136. Lawful actions pursuant to this chapter. 137. Review by courts. 138. Illicit cannabis. 139. Injunction for unlawful manufacture, sale or consumption of cannabis. 140. Persons forbidden to traffic cannabis products; certain officials not to be interested in manufacture or sale of cannabis products. 141. Access to criminal history information through the division of criminal justice services. § 125. General prohibitions and restrictions. 1. No person shall cultivate, process, or distribute for sale or sell at wholesale or retail any cannabis, cannabis product, medical cannabis or hemp cannabis product within the state without obtaining the appropriate registration, license, or permit therefor required by this chapter. 2. No registered organization, licensee, or permittee shall sell, or agree to sell or deliver in this state any cannabis or hemp cannabis for the purposes of resale to any person who is not duly registered, licensed or permitted pursuant to this chapter to sell such product, at wholesale or retail, as the case may be, at the time of such agreement and sale. 3. No registered organization, licensee, or permittee shall employ, or permit to be employed, or shall allow to work, on any premises regis- tered or licensed for retail sale hereunder, any person under the age of eighteen years in any capacity where the duties of such person require or permit such person to sell, dispense or handle cannabis or hemp cannabis. 4. No registered organization, licensee, or permittee shall sell, deliver or give away, or cause, permit or procure to be sold, delivered or given away any cannabis, cannabis product, medical cannabis or hemp cannabis on credit; except that a registered organization, licensee or permittee may accept third party credit cards for the sale of any canna- bis, cannabis product, medical cannabis or hemp cannabis for which it is registered, licensed or permitted to dispense or sell to patients or cannabis consumers. This includes, but is not limited to, any consign- ment sale of any kind. 5. No registered organization, licensee, or permittee shall cease to be operated as a bona fide or legitimate premises within the contem- plation of the registration, license, or permit issued for such prem- ises, as determined within the judgment of the office. 6. No registered organization, licensee, or permittee shall refuse, nor any person holding a registration, license, or permit refuse, nor any officer or director of any corporation or organization holding a registration, license, or permit refuse, to appear and/or testify under oath at an inquiry or hearing held by the office, with respect to any matter bearing upon the registration, license, or permit, the conduct of any people at the licensed premises, or bearing upon the character or S. 1509--A 150 A. 2009--A fitness of such registrant, licensee, or permittee to continue to hold any registration, license, or permit. Nor shall any of the above offer false testimony under oath at such inquiry or hearing. 7. No registered organization, licensee, or permittee shall engage, participate in, or aid or abet any violation or provision of this chap- ter, or the rules or regulations of the office. 8. The proper conduct of registered, licensed, or permitted premises is essential to the public interest. Failure of a registered organiza- tion, licensee, or permittee to exercise adequate supervision over the registered, licensed, or permitted location poses a substantial risk not only to the objectives of this chapter but imperils the health, safety, and welfare of the people of this state. It shall be the obligation of each person registered, licensed, or permitted under this chapter to ensure that a high degree of supervision is exercised over any and all conduct at any registered, licensed, or permitted location at any and all times in order to safeguard against abuses of the privilege of being registered, licensed, or permitted, as well as other violations of law, statute, rule, or regulation. Persons registered, licensed, or permitted shall be held strictly accountable for any and all violations that occur upon any registered, licensed, or permitted premises, and for any and all violations committed by or permitted by any manager, agent or employee of such registered, licensed, or permitted person. 9. It shall be unlawful for any person, partnership or corporation operating a place for profit or pecuniary gain, with a capacity for the assemblage of twenty or more persons to permit a person or persons to come to the place of assembly for the purpose of cultivating, process- ing, distributing, or retail distribution or sale of cannabis on said premises. This includes, but is not limited, to, cannabis that is either provided by the operator of the place of assembly, his agents, servants or employees, or cannabis that is brought onto said premises by the person or persons assembling at such place, unless an appropriate regis- tration, license, or permit has first been obtained from the office of cannabis management by the operator of said place of assembly. 10. As it is a privilege under the law to be registered, licensed, or permitted to cultivate, process, distribute, traffic, or sell cannabis, the office may impose any such further restrictions upon any registrant, licensee, or permittee in particular instances as it deems necessary to further state policy and best serve the public interest. A violation or failure of any person registered, licensed, or permitted to comply with any condition, stipulation, or agreement, upon which any registration, license, or permit was issued or renewed by the office shall subject the registrant, licensee, or permittee to suspension, cancellation, revoca- tion, and/or civil penalties as determined by the office. 11. No adult-use cannabis or medical cannabis may be imported to, or exported out of, New York state by a registered organization, licensee or person holding a license and/or permit pursuant to this chapter, until such time as it may become legal to do so under federal law. Should it become legal to do so under federal law, the office is granted the power to promulgate such rules and regulations as it deems necessary to protect the public and the policy of the state. 12. No registered organization, licensee or any of its agents, serv- ants or employees shall peddle any cannabis product, medical cannabis or hemp cannabis from house to house by means of a truck or otherwise, where the sale is consummated and delivery made concurrently at the residence or place of business of a cannabis consumer. This subdivision shall not prohibit the delivery by a registered organization to certi- S. 1509--A 151 A. 2009--A fied patients or their designated caregivers, pursuant to article three of this chapter. 13. No licensee shall employ any canvasser or solicitor for the purpose of receiving an order from a certified patient, designated care- giver or cannabis consumer for any cannabis product, medical cannabis or hemp cannabis at the residence or place of business of such patient, caregiver or consumer, nor shall any licensee receive or accept any order, for the sale of any cannabis product, medical cannabis or hemp cannabis which shall be solicited at the residence or place of business of a patient, caregiver or consumer. This subdivision shall not prohibit the solicitation by a distributor of an order from any licensee at the licensed premises of such licensee. 14. No premises registered, licensed, or permitted by the office shall: (a) permit or allow any gambling on the premises; (b) permit or allow the premises to become disorderly; (c) permit or allow the use, by any person, of any fireworks or other pyrotechnics on the premises; or (d) permit or allow to appear as an entertainer, on any part of the premises registered, licensed, or permitted, any person under the age of eighteen years. § 126. License to be confined to premises licensed; premises for which no license shall be granted; transporting cannabis. 1. A registration, license, or permit issued to any person, pursuant to this chapter, for any registered, licensed, or permitted premises shall not be transfera- ble to any other person, to any other location or premises, or to any other building or part of the building containing the licensed premises except in the discretion of the office. All privileges granted by any registration, license, or permit shall be available only to the person therein specified, and only for the premises licensed and no other except if authorized by the office. Provided, however, that the provisions of this section shall not be deemed to prohibit the amendment of a registration or license as provided for in this chapter. A violation of this section shall subject the registration, license, or permit to revocation for cause. 2. Where a registration or license for premises has been revoked, the office in its discretion may refuse to issue a registration, license, or permit under this chapter, for a period of up to five years after such revocation, for such premises or for any part of the building containing such premises and connected therewith. 3. In determining whether to issue such a proscription against grant- ing any registration, license, or permit for such five-year period, in addition to any other factors deemed relevant to the office, the office shall, in the case of a license revoked due to the illegal sale of cannabis to a minor, determine whether the proposed subsequent licensee has obtained such premises through an arm's length transaction, and, if such transaction is not found to be an arm's length transaction, the office shall deny the issuance of such license. 4. For purposes of this section, "arm's length transaction" shall mean a sale of a fee of all undivided interests in real property, lease, management agreement, or other agreement giving the applicant control over the cannabis at the premises, or any part thereof, in the open market, between an informed and willing buyer and seller where neither is under any compulsion to participate in the transaction, unaffected by any unusual conditions indicating a reasonable possibility that the sale was made for the purpose of permitting the original licensee to avoid S. 1509--A 152 A. 2009--A the effect of the revocation. The following sales shall be presumed not to be arm's length transactions unless adequate documentation is provided demonstrating that the sale, lease, management agreement, or other agreement giving the applicant control over the cannabis at the premises, was not conducted, in whole or in part, for the purpose of permitting the original licensee to avoid the effect of the revocation: (a) a sale between relatives; (b) a sale between related companies or partners in a business; or (c) a sale, lease, management agreement, or other agreement giving the applicant control over the cannabis at the premises, affected by other facts or circumstances that would indicate that the sale, lease, manage- ment agreement, or other agreement giving the applicant control over the cannabis at the premises, is entered into for the primary purpose of permitting the original licensee to avoid the effect of the revocation. 5. No registered organization, licensee or permittee shall transport cannabis products or medical cannabis except in vehicles owned and oper- ated by such registered organization, licensee or permittee, or hired and operated by such registered organization, licensee or permittee from a trucking or transportation company permitted and registered with the office. 6. No common carrier or person operating a transportation facility in this state, other than the United States government, shall receive for transportation or delivery within the state any cannabis products or medical cannabis unless the shipment is accompanied by copy of a bill of lading, or other document, showing the name and address of the consig- nor, the name and address of the consignee, the date of the shipment, and the quantity and kind of cannabis products or medical cannabis contained therein. § 127. Protections for the use of cannabis; unlawful discriminations prohibited. 1. No person, registered organization, licensee or permit- tee shall be subject to arrest, prosecution, or penalty in any manner, or denied any right or privilege, including but not limited to civil liability or disciplinary action by a business or occupational or professional licensing board or office, solely for conduct permitted under this chapter. For the avoidance of doubt, the appellate division of the supreme court of the state of New York, and any disciplinary or character and fitness committees established by them are occupational and professional licensing boards within the meaning of this section. State or local law enforcement agencies shall not cooperate with or provide assistance to the government of the United States or any agency thereof in enforcing the federal controlled substances act, 21 U.S.C. et seq., solely for actions consistent with this chapter, except as pursu- ant to a valid court order. 2. No school or landlord may refuse to enroll or lease to and may not otherwise penalize a person solely for conduct allowed under this chap- ter, except as exempted: (a) if failing to do so would cause the school or landlord to lose a monetary or licensing related benefit under federal law or regulations; (b) if the institution has adopted a code of conduct prohibiting cannabis use on the basis of religious belief; or (c) if a property is registered with the New York smoke-free housing registry, it is not required to permit the smoking of cannabis products on its premises. 3. For the purposes of medical care, including organ transplants, a certified patient's authorized use of medical cannabis must be consid- ered the equivalent of the use of any other medication under the direc- S. 1509--A 153 A. 2009--A tion of a practitioner and does not constitute the use of an illicit substance or otherwise disqualify a registered qualifying patient from medical care. 4. Unless an employer establishes that the lawful use of cannabis has impaired the employee's ability to perform the employee's job responsi- bilities, it shall be unlawful to take any adverse employment action against an employee based on conduct allowed under this chapter. 5. For the purposes of this section, an employer may consider an employee's ability to perform the employee's job responsibilities to be impaired when the employee manifests specific articulable symptoms while working that decrease or lessen the employee's performance of the duties or tasks of the employee's job position. 6. Nothing in this section shall restrict an employer's ability to prohibit or take adverse employment action for the possession or use of intoxicating substances during work hours, or require an employer to commit any act that would cause the employer to be in violation of federal law, or that would result in the loss of a federal contract or federal funding. 7. As used in this section, "adverse employment action" means refusing to hire or employ, barring or discharging from employment, requiring a person to retire from employment, or discriminating against in compen- sation or in terms, conditions, or privileges of employment. 8. A person currently under parole, probation or other state super- vision, or released on bail awaiting trial may not be punished or other- wise penalized for conduct allowed under this chapter. § 128. Registrations and licenses. 1. No registration or license shall be transferable or assignable except that notwithstanding any other provision of law, the registration or license of a sole proprietor converting to corporate form, where such proprietor becomes the sole stockholder and only officer and director of such new corporation, may be transferred to the subject corporation if all requirements of this chapter remain the same with respect to such registration or license as transferred and, further, the registered organization or licensee shall transmit to the office, within ten days of the transfer of license allowable under this subdivision, on a form prescribed by the office, notification of the transfer of such license. 2. No registration or license shall be pledged or deposited as collat- eral security for any loan or upon any other condition; and any such pledge or deposit, and any contract providing therefor, shall be void. 3. Licenses issued under this chapter shall contain, in addition to any further information or material to be prescribed by the rules of the office, the following information: (a) name of the person to whom the license is issued; (b) kind of license and what kind of traffic in cannabis is thereby permitted; (c) description by street and number, or otherwise, of licensed prem- ises; and (d) a statement in substance that such license shall not be deemed a property or vested right, and that it may be revoked at any time pursu- ant to law. § 129. Laboratory testing permit. 1. The executive director shall approve and permit one or more independent cannabis testing laboratories to test medical cannabis, adult-use cannabis and/or hemp cannabis. 2. To be permitted as an independent cannabis laboratory, a laboratory must apply to the office, on a form and in a manner prescribed by the S. 1509--A 154 A. 2009--A office, and must demonstrate the following to the satisfaction of the executive director: (a) the owners and directors of the laboratory are of good moral char- acter; (b) the laboratory and its staff has the skills, resources and exper- tise needed to accurately and consistently perform all of the testing required for adult-use cannabis, medical cannabis and/or hemp cannabis; (c) the laboratory has in place and will maintain adequate policies, procedures, and facility security to ensure proper: collection, label- ing, accessioning, preparation, analysis, result reporting, disposal and storage of adult-use cannabis, medical cannabis and/or hemp cannabis; (d) the laboratory is physically located in New York state; (e) the laboratory has been approved by the department of health pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu- lations, pertaining to laboratories performing environmental analysis; and (f) the laboratory meets any and all requirements prescribed by this chapter and by the executive director in regulation. 3. The owner of a laboratory testing permit under this section shall not hold a registration or license in any category of this chapter and shall not have any direct or indirect ownership interest in such regis- tered organization or licensee. No board member, officer, manager, owner, partner, principal stakeholder or member of a registered organ- ization or licensee under this chapter, or such person's immediate fami- ly member, shall have an interest or voting rights in any laboratory testing permittee. 4. The executive director shall require that the permitted laboratory report testing results to the office in a manner, form and timeframe as determined by the executive director. 5. The executive director is authorized to promulgate regulations, requiring permitted laboratories to perform certain tests and services. § 130. Special Use Permits. The office is hereby authorized to issue the following kinds of permits for carrying on activities consistent with the policy and purpose of this chapter with respect to cannabis. The executive director has the authority to set fees for all permits issued pursuant to this section, to establish the periods during which permits are authorized, and to make rules and regulations, including emergency regulations, to implement this section. 1. Industrial cannabis permit - to purchase cannabis for use in the manufacture and sale of any of the following, when such cannabis is not otherwise suitable for consumption purposes, namely: (a) apparel, ener- gy, paper, and tools; (b) scientific, chemical, mechanical and indus- trial products; or (c) any other industrial use as determined by the executive director in regulation. 2. Nursery permit - to produce clones, immature plants, seeds, and other agricultural products used specifically for the planting, propa- gation, and cultivation of cannabis, and to sell such to licensed adult-use cultivators, registered organizations, and certified patients or their designated caregivers. 3. Solicitor's permit - to offer for sale or to solicit orders for the sale of any cannabis products, medical cannabis and/or hemp cannabis, as a representative of a registered organization or licensee under this chapter. 4. Broker's permit - to act as a broker in the purchase and sale of cannabis products, medical cannabis and/or hemp cannabis for a fee or commission, for or on behalf of a person authorized to cultivate, proc- S. 1509--A 155 A. 2009--A ess, distribute or dispense cannabis products, medical cannabis or hemp cannabis within the state. 5. Trucking permit - to allow for the trucking or transportation of cannabis products, medical cannabis or hemp cannabis by a person other than a registered organization or licensee under this chapter. 6. Warehouse permit - to allow for the storage of cannabis, cannabis products, medical cannabis or hemp cannabis at a location not otherwise registered or licensed by the office. 7. Delivery permit - to authorize licensed adult-use cannabis dispen- saries to deliver adult-use cannabis and cannabis products directly to cannabis consumers. 8. Cannabinoid permit - to sell cannabinoid products derived from hemp cannabis for off-premises consumption. 9. Temporary retail cannabis permit - to authorize the retail sale of adult-use cannabis to cannabis consumers, for a limited purpose or dura- tion. 10. Caterer's permit - to authorize the service of cannabis products at a function, occasion or event in a hotel, restaurant, club, ballroom or other premises, which shall authorize within the hours fixed by the office, during which cannabis may lawfully be sold or served on the premises in which such function, occasion or event is held. 11. Packaging permit - to authorize a licensed cannabis distributor to sort, package, label and bundle cannabis products from one or more registered organizations or licensed processors, on the premises of the licensed cannabis distributor or at a warehouse for which a permit has been issued under this section. 12. Miscellaneous permits - to purchase, receive or sell cannabis, cannabis products or medical cannabis, or receipts, certificates, contracts or other documents pertaining to cannabis, cannabis products, or medical cannabis, in cases not expressly provided for by this chap- ter, when in the judgment of the office it would be appropriate and consistent with the policy and purpose of this chapter. § 131. Professional and medical record keeping. Any professional providing services in connection with a licensed or potentially licensed business under this chapter, or in connection with other conduct permit- ted under this chapter, and any medical professional providing medical care to a patient, other than a certified patient, may agree with their client or patient to maintain no record, or any reduced level of record keeping that professional and client or patient may agree. In case of such agreement, the professional's only obligation shall be to keep such records as agreed, and to keep a record of the agreement. Such reduced record keeping is conduct permitted under this chapter. § 132. County opt-out; municipal control and preemption. 1. The provisions of article four of this chapter, authorizing the cultivation, processing, distribution and sale of adult-use cannabis to cannabis consumers, shall not be applicable to a county, or city having a popu- lation of one-hundred thousand or more residents, which adopts a local law, ordinance or resolution by a majority vote of its governing body to completely prohibit the establishment or operation of one or more types of licenses contained in article four of this chapter, within the juris- diction of the county or city. 2. Except as provided for in subdivision one of this section, all county, town, city and village municipalities are hereby preempted from adopting any rule, ordinance, regulation or prohibition pertaining to the operation or licensure of registered organizations, adult-use canna- bis licenses or hemp licenses. However, counties and, municipalities may S. 1509--A 156 A. 2009--A pass ordinances or regulations governing the time, place and manner of licensed adult-use cannabis retail dispensaries, provided such ordinance or regulation does not make the operation of such licensed retail dispensaries unreasonably impracticable as determined by the executive director in his or her sole discretion. § 133. Executive director to be necessary party to certain proceedings. The executive director shall be made a party to all actions and proceedings affecting in any manner the ability of a regis- tered organization or licensee to operate within a municipality, or the result of any vote thereupon; to all actions and proceedings relative to issuance or revocation of registrations, licenses or permits; to all injunction proceedings, and to all other civil actions or proceedings which in any manner affect the enjoyment of the privileges or the opera- tion of the restrictions provided for in this chapter. § 134. Penalties for violation of this chapter. 1. Any person who cultivates for sale or sells cannabis, cannabis products, medical canna- bis or hemp cannabis without having an appropriate registration, license or permit therefor, or whose registration, license, or permit has been revoked, surrendered or cancelled, shall be guilty of a misdemeanor, and upon first conviction thereof shall be punished by a fine not more than five thousand dollars per instance or by imprisonment in a county jail or penitentiary for a term of not less than thirty days nor more than one year or both and upon second conviction thereof shall be punished by a fine not less than ten thousand dollars or by imprisonment in a county jail or penitentiary for a term of not less than thirty days nor more than one year or both and upon all subsequent convictions thereof shall be punished by a fine not less twenty-five thousand dollars or peniten- tiary for a term of not less than thirty days nor more than one year or both provided, however, that in default of payment of any fine imposed, such person shall be imprisoned in a county jail or penitentiary for a term of not less than thirty days. 2. Any registered organization or licensee, whose registration or license has been suspended pursuant to the provisions of this chapter, who sells cannabis, cannabis products, medical cannabis or hemp cannabis during the suspension period, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not more than five thousand dollars per instance or by imprisonment in a county jail or penitentiary for a term of not more than six months, or by both such fine and imprisonment. 3. Any person who shall make any false statement in the application for a registration, license or a permit under this chapter shall be guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five thousand dollars, or by imprisonment in a county jail or penitentiary for a term of not more than six months or both. 4. Any violation by any person of any provision of this chapter for which no punishment or penalty is otherwise provided shall be a misde- meanor. § 135. Revocation of registrations, licenses and permits for cause; procedure for revocation or cancellation. 1. Any registration, license or permit issued pursuant to this chapter may be revoked, cancelled, suspended and/or subjected to the imposition of a civil penalty for cause, and must be revoked for the following causes: (a) conviction of the registered organization, licensee, permittee or his or her agent or employee for selling any illegal cannabis on the premises registered, licensed or permitted; or S. 1509--A 157 A. 2009--A (b) for transferring, assigning or hypothecating a registration, license or permit without prior written approval of the office. 2. Notwithstanding the issuance of a registration, license or permit by way of renewal, the office may revoke, cancel or suspend such regis- tration, license or permit and/or may impose a civil penalty against any holder of such registration, license or permit, as prescribed by this section, for causes or violations occurring during the license period immediately preceding the issuance of such registration, license or permit. 3. (a) As used in this section, the term "for cause" shall also include the existence of a sustained and continuing pattern of miscon- duct, failure to adequately prevent diversion or disorder on or about the registered, licensed or permitted premises, or in the area in front of or adjacent to the registered or licensed premises, or in any parking lot provided by the registered organization or licensee for use by registered organization or licensee's patrons, which, in the judgment of the office, adversely affects or tends to affect the protection, health, welfare, safety, or repose of the inhabitants of the area in which the registered or licensed premises is located, or results in the licensed premises becoming a focal point for police attention, or is offensive to public decency. (b) (i) As used in this section, the term "for cause" shall also include deliberately misleading the authority: (A) as to the nature and character of the business to be operated by the registered organization, licensee or permittee; or (B) by substantially altering the nature or character of such business during the registration or licensing period without seeking appropriate approvals from the office. (ii) As used in this subdivision, the term "substantially altering the nature or character" of such business shall mean any significant alter- ation in the scope of business activities conducted by a registered organization, licensee or permittee that would require obtaining an alternate form of registration, license or permit. 4. As used in this chapter, the existence of a sustained and continu- ing pattern of misconduct, failure to adequately prevent diversion or disorder on or about the premises may be presumed upon the sixth inci- dent reported to the office by a law enforcement agency, or discovered by the office during the course of any investigation, of misconduct, diversion or disorder on or about the premises or related to the opera- tion of the premises, absent clear and convincing evidence of either fraudulent intent on the part of any complainant or a factual error with respect to the content of any report concerning such complaint relied upon by the office. 5. Notwithstanding any other provision of this chapter to the contra- ry, a suspension imposed under this section against the holder of a registration issued pursuant to article three of this chapter, shall only suspend the licensed activities related to the type of cannabis, medical cannabis or adult-use cannabis involved in the violation result- ing in the suspension. 6. Any registration, license or permit issued by the office pursuant to this chapter may be revoked, cancelled or suspended and/or be subjected to the imposition of a monetary penalty in the manner prescribed by this section and by the executive director in regulation. 7. The office may on its own initiative, or on complaint of any person, institute proceedings to revoke, cancel or suspend any adult-use cannabis retail dispensary license or adult-use cannabis on-site S. 1509--A 158 A. 2009--A consumption license and may impose a civil penalty against the licensee after a hearing at which the licensee shall be given an opportunity to be heard. Such hearing shall be held in such manner and upon such notice as may be prescribed in regulation by the executive director. 8. All other registrations, licenses or permits issued under this chapter may be revoked, cancelled, suspended and/or made subject to the imposition of a civil penalty by the office after a hearing to be held in such manner and upon such notice as may be prescribed in regulation by the executive director. 9. Where a licensee or permittee is convicted of two or more qualify- ing offenses within a five-year period, the office, upon receipt of notification of such second or subsequent conviction, shall, in addition to any other sanction or civil or criminal penalty imposed pursuant to this chapter, impose on such licensee a civil penalty not to exceed ten thousand dollars. For purposes of this subdivision, a qualifying offense shall mean the unlawful sale of cannabis to a person under the age of twenty-one. For purposes of this subdivision, a conviction of a licensee or an employee or agent of such licensee shall constitute a conviction of such licensee. § 136. Lawful actions pursuant to this chapter. 1. Contracts related to the operation of registered organizations, licenses and permits under this chapter shall be lawful and shall not be deemed unenforceable on the basis that the actions permitted pursuant to the registration, license or permit are prohibited by federal law. 2. The following actions are not unlawful as provided under this chap- ter, shall not be an offense under any state or local law, and shall not result in any civil fine, seizure, or forfeiture of assets against any person acting in accordance with this chapter: (a) Actions of a registered organization, licensee, or permittee, or the employees or agents of such registered organization, licensee or permittee, as permitted by this chapter and consistent with rules and regulations of the office, pursuant to a valid registration, license or permit issued by the office. (b) Actions of those who allow property to be used by a registered organization, licensee, or permittee, or the employees or agents of such registered organization, licensee or permittee, as permitted by this chapter and consistent with rules and regulations of the office, pursu- ant to a valid registration, license or permit issued by the office. (c) Actions of any person or entity, their employees, or their agents providing a service to a registered organization, licensee, permittee or a potential registered organization, licensee, or permittee, as permit- ted by this chapter and consistent with rules and regulations of the office, relating to the formation of a business. (d) The purchase, possession, or consumption of cannabis, medical cannabis and hemp, as permitted by this chapter and consistent with rules and regulations of the office, obtained from a validly registered, licensed or permitted retailer. § 137. Review by courts. 1. The following actions by the office, and only the following actions by the office, shall be subject to review by the supreme court in the manner provided in article seventy-eight of the civil practice law and rules: (a) Refusal by the office to issue a registration, license, or a permit. (b) The revocation, cancellation or suspension of a registration, license, or permit by the office. S. 1509--A 159 A. 2009--A (c) The failure or refusal by the office to render a decision upon any application or hearing submitted to or held by the office within sixty days after such submission or hearing. (d) The transfer by the office of a registration, license, or permit to any other entity or premises, or the failure or refusal by the office to approve such a transfer. (e) Refusal to approve alteration of premises. (f) Refusal to approve a corporate change in stockholders, stockhold- ings, officers or directors. 2. No stay shall be granted pending the determination of such matter except on notice to the office and only for a period of less than thirty days. In no instance shall a stay be granted where the office has issued a summary suspension of a registration, license, or permit for the protection of the public health, safety, and welfare. § 138. Illicit cannabis. 1. "Illicit cannabis" means and includes any cannabis product, medical cannabis or hemp cannabis owned, cultivated, distributed, bought, sold, packaged, rectified, blended, treated, forti- fied, mixed, processed, warehoused, possessed or transported, or on which any tax required to have been paid under any applicable state law has not been paid. 2. Any person who shall knowingly possess or have under his or her control any illicit cannabis is guilty of a misdemeanor. 3. Any person who shall knowingly barter or exchange with, or sell, give or offer to sell or to give another any illicit cannabis is guilty of a misdemeanor. 4. Any person who shall possess or have under his or her control or transport any illicit cannabis with intent to barter or exchange with, or to sell or give to another the same or any part thereof is guilty of a misdemeanor. Such intent is presumptively established by proof that the person knowingly possessed or had under his or her control one or more ounces of illicit cannabis. This presumption may be rebutted. 5. Any person who, being the owner, lessee, or occupant of any room, shed, tenement, booth or building, float or vessel, or part thereof, knowingly permits the same to be used for the cultivation, processing, distribution, purchase, sale, warehousing, transportation, or storage of any illicit cannabis, is guilty of a misdemeanor. § 139. Injunction for unlawful manufacturing, sale or consumption of cannabis. 1. If any person shall engage or participate or be about to engage or participate in the cultivation, production, distribution, traffic, or sale of cannabis products, medical cannabis or hemp cannabis in this state without obtaining the appropriate registration, license, or permit therefor, or shall traffic in cannabis products, medical cannabis or hemp cannabis contrary to any provision of this chapter, or otherwise unlawfully, or shall traffic in illegal cannabis products, medical cannabis or hemp cannabis, or, operating a place for profit or pecuniary gain, with a capacity for the assemblage of twenty or more persons, shall permit a person or persons to come to such place of assembly for the purpose of consuming cannabis products without having the appropriate license or permit therefor, the office may present a verified petition or complaint to a justice of the supreme court at a special term of the supreme court of the judicial district in which such city, village or town is situated, for an order enjoining such person engaging or participating in such activity or from carrying on such business. Such petition or complaint shall state the facts upon which such application is based. Upon the presentation of the petition or complaint, the justice or court may grant an order temporarily restrain- S. 1509--A 160 A. 2009--A ing any person from continuing to engage in conduct as specified in the petition or complaint, and shall grant an order requiring such person to appear before such justice or court at or before a special term of the supreme court in such judicial district on the day specified therein, not more than ten days after the granting thereof, to show cause why such person should not be permanently enjoined from engaging or partic- ipating in such activity or from carrying on such business, or why such person should not be enjoined from carrying on such business contrary to the provisions of this chapter. A copy of such petition or complaint and order shall be served upon the person, in the manner directed by such order, not less than three days before the return day thereof. On the day specified in such order, the justice or court before whom the same is returnable shall hear the proofs of the parties and may, if deemed necessary or proper, take testimony in relation to the allegations of the petition or complaint. If the justice or court is satisfied that such person is about to engage or participate in the unlawful traffic in cannabis, medical cannabis or hemp cannabis or has unlawfully culti- vated, processed, or sold cannabis products, medical cannabis or hemp cannabis without having obtained a registration or license or contrary to the provisions of this chapter, or has trafficked in illegal canna- bis, or, is operating or is about to operate such place for profit or pecuniary gain, with such capacity, and has permitted or is about to permit a person or persons to come to such place of assembly for the purpose of consuming cannabis products without having such appropriate license, an order shall be granted enjoining such person from thereafter engaging or participating in or carrying on such activity or business. If, after the entry of such an order in the county clerk's office of the county in which the principal place of business of the corporation or partnership is located, or in which the individual so enjoined resides or conducts such business, and the service of a copy thereof upon such person, or such substituted service as the court may direct, such person, partnership or corporation shall, in violation of such order, cultivate, process, distribute or sell cannabis products, medical canna- bis or hemp cannabis, or illegal cannabis products, medical cannabis or hemp cannabis, or permit a person or persons to come to such place of assembly for the purpose of consuming cannabis products, such activity shall be deemed a contempt of court and be punishable in the manner provided by the judiciary law, and, in addition to any such punishment, the justice or court before whom or which the petition or complaint is heard, may, in his or its discretion, order the seizure and forfeiture of any cannabis products and any fixtures, equipment and supplies used in the operation or promotion of such illegal activity and such property shall be subject to forfeiture pursuant to law. Costs upon the applica- tion for such injunction may be awarded in favor of and against the parties thereto in such sums as in the discretion of the justice or court before whom or which the petition or complaint is heard may seem proper. 2. The owner, lessor and lessee of a building, erection or place where cannabis products, medical cannabis or hemp cannabis is unlawfully cultivated, processed, distributed, sold, consumed or permitted to be unlawfully cultivated, processed, distributed, sold or consumed may be made a respondent or defendant in the proceeding or action. § 140. Persons forbidden to traffic cannabis; certain officials not to be interested in manufacture or sale of cannabis products. 1. The following are forbidden to traffic in cannabis: S. 1509--A 161 A. 2009--A (a) Except as provided in subdivision one-a of this section, a person who has been convicted of a felony, unless subsequent to such conviction such person shall have received an executive pardon therefor removing this disability, a certificate of good conduct granted by the department of corrections and community supervision, or a certificate of relief from disabilities granted by the department of corrections and community supervision or a court of this state pursuant to the provisions of arti- cle twenty-three of the correction law to remove the disability under this section because of such conviction; (b) A person under the age of twenty-one years; (c) A person who is not a citizen of the United States or an alien lawfully admitted for permanent residence in the United States; (d) A partnership or a corporation, unless each member of the partner- ship, or each of the principal officers and directors of the corpo- ration, is a citizen of the United States or an alien lawfully admitted for permanent residence in the United States, not less than twenty-one years of age, and has not been convicted of any felony, or if so convicted has received, subsequent to such conviction, an executive pardon therefor removing this disability a certificate of good conduct granted by the department of corrections and community supervision, or a certificate of relief from disabilities granted by the department of corrections and community supervision or a court of this state pursuant to the provisions of article twenty-three of the correction law to remove the disability under this section because of such conviction; provided however that a corporation which otherwise conforms to the requirements of this section and chapter may be licensed if each of its principal officers and more than one-half of its directors are citizens of the United States or aliens lawfully admitted for permanent residence in the United States; and provided further that a corporation organized under the not-for-profit corporation law or the education law which otherwise conforms to the requirements of this section and chapter may be licensed if each of its principal officers and more than one-half of its directors are not less than twenty-one years of age and none of its directors are less than eighteen years of age; and provided further that a corporation organized under the not-for-profit corporation law or the education law and located on the premises of a college as defined by section two of the education law which otherwise conforms to the requirements of this section and chapter may be licensed if each of its principal officers and each of its directors are not less than eighteen years of age; (e) A person who shall have had any registration or license issued under this chapter revoked for cause, until the expiration of two years from the date of such revocation; (f) A person not registered or licensed under the provisions of this chapter, who has been convicted of a violation of this chapter, until the expiration of two years from the date of such conviction; or (g) A corporation or partnership, if any officer and director or any partner, while not licensed under the provisions of this chapter, has been convicted of a violation of this chapter, or has had a registration or license issued under this chapter revoked for cause, until the expi- ration of two years from the date of such conviction or revocation. 1-a. Notwithstanding the provision of subdivision one of this section, a corporation holding a registration or license to traffic cannabis products or medical cannabis shall not, upon conviction of a felony be automatically forbidden to traffic in cannabis products or medical cannabis, but the application for a registered organization or license S. 1509--A 162 A. 2009--A by such a corporation shall be subject to denial, and the registration or license of such a corporation shall be subject to revocation or suspension by the office pursuant, consistent with the provisions of article twenty-three-A of the correction law. For any felony conviction by a court other than a court of this state, the office may request the department of corrections and community supervision to investigate and review the facts and circumstances concerning such a conviction, and such department shall, if so requested, submit its findings to the office as to whether the corporation has conducted itself in a manner such that discretionary review by the office would not be inconsistent with the public interest. The department of corrections and community supervision may charge the registered organization, licensee or appli- cant a fee equivalent to the expenses of an appropriate investigation under this subdivision. For any conviction rendered by a court of this state, the office may request the corporation, if the corporation is eligible for a certificate of relief from disabilities, to seek such a certificate from the court which rendered the conviction and to submit such a certificate as part of the office's discretionary review process. 2. Except as may otherwise be provided for in regulation, it shall be unlawful for any police commissioner, police inspector, captain, sergeant, roundsman, patrolman or other police official or subordinate of any police department in the state, to be either directly or indi- rectly interested in the cultivation, processing, distribution, or sale of cannabis products or to offer for sale, or recommend to any regis- tered organization or licensee any cannabis products. A person may not be denied any registration or license granted under the provisions of this chapter solely on the grounds of being the spouse of a public serv- ant described in this section. The solicitation or recommendation made to any registered organization or licensee, to purchase any cannabis products by any police official or subordinate as hereinabove described, shall be presumptive evidence of the interest of such official or subor- dinate in the cultivation, processing, distribution, or sale of cannabis products. 3. No elective village officer shall be subject to the limitations set forth in subdivision two of this section unless such elective village officer shall be assigned duties directly relating to the operation or management of the police department. § 141. Access to criminal history information through the division of criminal justice services. In connection with the administration of this chapter, the executive director is authorized to request, receive and review criminal history information through the division of criminal justice services with respect to any person seeking a registration, license, permit or authorization to cultivate, process, distribute or sell medical cannabis, adult use cannabis or hemp cannabis. At the exec- utive director's request, each person, member, principal and/or officer of the applicant shall submit to the office his or her fingerprints in such form and in such manner as specified by the division, for the purpose of conducting a criminal history search and returning a report thereon in accordance with the procedures and requirements established by the division pursuant to the provisions of article thirty-five of the executive law, which shall include the payment of the prescribed proc- essing fees for the cost of the division's full search and retain proce- dures and a national criminal history record check. The executive direc- tor, or his or her designee, shall submit such fingerprints and the processing fee to the division. The division shall forward to the execu- tive director a report with respect to the applicant's previous criminal S. 1509--A 163 A. 2009--A history, if any, or a statement that the applicant has no previous crim- inal history according to its files. Fingerprints submitted to the divi- sion pursuant to this subdivision may also be submitted to the federal bureau of investigation for a national criminal history record check. If additional copies of fingerprints are required, the applicant shall furnish them upon request. § 3. Intentionally omitted. § 4. Section 3302 of the public health law, as added by chapter 878 of the laws of 1972, subdivisions 1, 14, 16, 17 and 27 as amended and subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24, 25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998, subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39 and 40 as added by chapter 178 of the laws of 2010, paragraph (a) of subdivision 20, the opening paragraph of subdivision 22 and subdivision 29 as amended by chapter 163 of the laws of 1973, subdivision 31 as amended by section 4 of part A of chapter 58 of the laws of 2004, subdi- vision 41 as added by section 6 of part A of chapter 447 of the laws of 2012, and subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of the laws of 2014, is amended to read as follows: § 3302. Definitions of terms of general use in this article. Except where different meanings are expressly specified in subsequent provisions of this article, the following terms have the following mean- ings: 1. "Addict" means a person who habitually uses a controlled substance for a non-legitimate or unlawful use, and who by reason of such use is dependent thereon. 2. "Administer" means the direct application of a controlled substance, whether by injection, inhalation, ingestion, or any other means, to the body of a patient or research subject. 3. "Agent" means an authorized person who acts on behalf of or at the direction of a manufacturer, distributor, or dispenser. No person may be authorized to so act if under title VIII of the education law such person would not be permitted to engage in such conduct. It does not include a common or contract carrier, public warehouseman, or employee of the carrier or warehouseman when acting in the usual and lawful course of the carrier's or warehouseman's business. 4. ["Concentrated Cannabis" means (a) the separated resin, whether crude or purified, obtained from a plant of the genus Cannabis; or (b) a material, preparation, mixture, compound or other substance which contains more than two and one-half percent by weight of delta-9 tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono- terpene numbering system. 5.] "Controlled substance" means a substance or substances listed in section thirty-three hundred six of this [chapter] TITLE. [6.] 5. "Commissioner" means commissioner of health of the state of New York. [7.] 6. "Deliver" or "delivery" means the actual, constructive or attempted transfer from one person to another of a controlled substance, whether or not there is an agency relationship. [8.] 7. "Department" means the department of health of the state of New York. [9.] 8. "Dispense" means to deliver a controlled substance to an ulti- mate user or research subject by lawful means, including by means of the S. 1509--A 164 A. 2009--A internet, and includes the packaging, labeling, or compounding necessary to prepare the substance for such delivery. [10.] 9. "Distribute" means to deliver a controlled substance, includ- ing by means of the internet, other than by administering or dispensing. [11.] 10. "Distributor" means a person who distributes a controlled substance. [12.] 11. "Diversion" means manufacture, possession, delivery or use of a controlled substance by a person or in a manner not specifically authorized by law. [13.] 12. "Drug" means (a) substances recognized as drugs in the official United States Phar- macopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement to any of them; (b) substances intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or animals; and (c) substances (other than food) intended to affect the structure or a function of the body of man or animal. It does not include devices or their components, parts, or accessories. [14.] 13. "Federal agency" means the Drug Enforcement Administration, United States Department of Justice, or its successor agency. [15.] 14. "Federal controlled substances act" means the Comprehensive Drug Abuse Prevention and Control Act of 1970, Public Law 91-513, and any act or acts amendatory or supplemental thereto or regulations promulgated thereunder. [16.] 15. "Federal registration number" means such number assigned by the Federal agency to any person authorized to manufacture, distribute, sell, dispense or administer controlled substances. [17.] 16. "Habitual user" means any person who is, or by reason of repeated use of any controlled substance for non-legitimate or unlawful use is in danger of becoming, dependent upon such substance. [18.] 17. "Institutional dispenser" means a hospital, veterinary hospital, clinic, dispensary, maternity home, nursing home, mental hospital or similar facility approved and certified by the department as authorized to obtain controlled substances by distribution and to dispense and administer such substances pursuant to the order of a prac- titioner. [19.] 18. "License" means a written authorization issued by the department or the New York state department of education permitting persons to engage in a specified activity with respect to controlled substances. [20.] 19. "Manufacture" means the production, preparation, propa- gation, compounding, cultivation, conversion or processing of a controlled substance, either directly or indirectly or by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container, except that this term does not include the preparation, compounding, packaging or labeling of a controlled substance: (a) by a practitioner as an incident to his administering or dispens- ing of a controlled substance in the course of his professional prac- tice; or (b) by a practitioner, or by his authorized agent under his super- vision, for the purpose of, or as an incident to, research, teaching, or chemical analysis and not for sale; or S. 1509--A 165 A. 2009--A (c) by a pharmacist as an incident to his dispensing of a controlled substance in the course of his professional practice. [21. "Marihuana" means all parts of the plant of the genus Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manu- facture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. 22.] 20. "Narcotic drug" means any of the following, whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by a combi- nation of extraction and chemical synthesis: (a) opium and opiate, and any salt, compound, derivative, or prepara- tion of opium or opiate; (b) any salt, compound, isomer, derivative, or preparation thereof which is chemically equivalent or identical with any of the substances referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but not including the isoquinoline alkaloids of opium; (c) opium poppy and poppy straw. [23.] 21. "Opiate" means any substance having an addiction-forming or addiction-sustaining liability similar to morphine or being capable of conversion into a drug having addiction-forming or addiction-sustaining liability. It does not include, unless specifically designated as controlled under section [3306] THIRTY-THREE HUNDRED SIX of this [arti- cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and its salts (dextromethorphan). It does include its racemic and levorota- tory forms. [24.] 22. "Opium poppy" means the plant of the species Papaver somniferum L., except its seeds. [25.] 23. "Person" means individual, institution, corporation, govern- ment or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. [26.] 24. "Pharmacist" means any person licensed by the state depart- ment of education to practice pharmacy. [27.] 25. "Pharmacy" means any place registered as such by the New York state board of pharmacy and registered with the Federal agency pursuant to the federal controlled substances act. [28.] 26. "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing. [29.] 27. "Practitioner" means: A physician, dentist, podiatrist, veterinarian, scientific investi- gator, or other person licensed, or otherwise permitted to dispense, administer or conduct research with respect to a controlled substance in the course of a licensed professional practice or research licensed pursuant to this article. Such person shall be deemed a "practitioner" only as to such substances, or conduct relating to such substances, as is permitted by his license, permit or otherwise permitted by law. [30.] 28. "Prescribe" means a direction or authorization, by prescription, permitting an ultimate user lawfully to obtain controlled substances from any person authorized by law to dispense such substances. S. 1509--A 166 A. 2009--A [31.] 29. "Prescription" shall mean an official New York state prescription, an electronic prescription, an oral prescription[,] OR an out-of-state prescription[, or any one]. [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth- er, or offer or agree to do the same. [33.] 31. "Ultimate user" means a person who lawfully obtains and possesses a controlled substance for his own use or the use by a member of his household or for an animal owned by him or in his custody. It shall also mean and include a person designated, by a practitioner on a prescription, to obtain such substance on behalf of the patient for whom such substance is intended. [34.] 32. "Internet" means collectively computer and telecommuni- cations facilities which comprise the worldwide network of networks that employ a set of industry standards and protocols, or any predecessor or successor protocol to such protocol, to exchange information of all kinds. "Internet," as used in this article, also includes other networks, whether private or public, used to transmit information by electronic means. [35.] 33. "By means of the internet" means any sale, delivery, distribution, or dispensing of a controlled substance that uses the internet, is initiated by use of the internet or causes the internet to be used. [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person in the United States that sells, delivers or dispenses, or offers to sell, deliver, or dispense, a controlled substance by means of the internet. [37.] 35. "Electronic prescription" means a prescription issued with an electronic signature and transmitted by electronic means in accord- ance with regulations of the commissioner and the commissioner of educa- tion and consistent with federal requirements. A prescription generated on an electronic system that is printed out or transmitted via facsimile is not considered an electronic prescription and must be manually signed. [38.] 36. "Electronic" means of or relating to technology having elec- trical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities. "Electronic" shall not include facsimile. [39.] 37. "Electronic record" means a paperless record that is created, generated, transmitted, communicated, received or stored by means of electronic equipment and includes the preservation, retrieval, use and disposition in accordance with regulations of the commissioner and the commissioner of education and in compliance with federal law and regulations. [40.] 38. "Electronic signature" means an electronic sound, symbol, or process, attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the record, in accordance with regulations of the commissioner and the commissioner of education. [41.] 39. "Registry" or "prescription monitoring program registry" means the prescription monitoring program registry established pursuant to section thirty-three hundred forty-three-a of this article. [42.] 40. "Compounding" means the combining, admixing, mixing, dilut- ing, pooling, reconstituting, or otherwise altering of a drug or bulk drug substance to create a drug with respect to an outsourcing facility under section 503B of the federal Food, Drug and Cosmetic Act and further defined in this section. [43.] 41. "Outsourcing facility" means a facility that: S. 1509--A 167 A. 2009--A (a) is engaged in the compounding of sterile drugs as defined in section sixty-eight hundred two of the education law; (b) is currently registered as an outsourcing facility pursuant to article one hundred thirty-seven of the education law; and (c) complies with all applicable requirements of federal and state law, including the Federal Food, Drug and Cosmetic Act. Notwithstanding any other provision of law to the contrary, when an outsourcing facility distributes or dispenses any drug to any person pursuant to a prescription, such outsourcing facility shall be deemed to be providing pharmacy services and shall be subject to all laws, rules and regulations governing pharmacies and pharmacy services. § 5. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31 and 32 of subdivision (d) of schedule I of section 3306 of the public health law, paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23 and 24 as added by chapter 664 of the laws of 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by chapter 589 of the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the laws of 2006, are amended to read as follows: (13) [Marihuana. (14)] Mescaline. [(15)] (14) Parahexyl. Some trade or other names: 3-Hexyl-1-hydroxy- 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran. [(16)] (15) Peyote. Meaning all parts of the plant presently classi- fied botanically as Lophophora williamsii Lemaire, whether growing or not, the seeds thereof, any extract from any part of such plant, and every compound, manufacture, salts, derivative, mixture, or preparation of such plant, its seeds or extracts. [(17)] (16) N-ethyl-3-piperidyl benzilate. [(18)] (17) N-methyl-3-piperidyl benzilate. [(19)] (18) Psilocybin. [(20)] (19) Psilocyn. [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of the substances contained in the plant, or in the resinous extractives of cannabis, sp. and/or synthetic substances, derivatives, and their isomers with similar chemical structure and pharmacological activity such as the following: [/\] DELTA 1 cis or trans tetrahydrocannabinol, and their optical isomers [/\] DELTA 6 cis or trans tetrahydrocannabinol, and their optical isomers [/\] DELTA 3, 4 cis or trans tetrahydrocannabinol, and its optical isomers (since nomenclature of these substances is not internationally standardized, compounds of these structures, regardless of numerical designation of atomic positions covered). [(22)] (21) Ethylamine analog of phencyclidine. Some trade or other names: N-ethyl-1-phenylcyclohexylamine, (1-phenylcyclohexyl) ethyla- mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE. [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade or other names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP. [(24)] (23) Thiophene analog of phencyclidine. Some trade or other names: 1-{1-(2-thienyl)-cyclohexyl}-piperidine, 2-thienylanalog of phencyclidine, TPCP, TCP. [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA). [(26)] (25) 3,4-methylendioxy-N-ethylamphetamine (also known as N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine, N-ethyl MDA, MDE, MDEA. S. 1509--A 168 A. 2009--A [(27)] (26) N-hydroxy-3,4-methylenedioxyamphetamine (also known as N-hydroxy-alpha-methyl-3,4 (methylenedioxy) phenethylamine, and N-hydroxy MDA. [(28)] (27) 1-{1- (2-thienyl) cyclohexyl} pyrrolidine. Some other names: TCPY. [(29)] (28) Alpha-ethyltryptamine. Some trade or other names: etryp- tamine; Monase; Alpha-ethyl-1H-indole-3-ethanamine; 3- (2-aminobutyl) indole; Alpha-ET or AET. [(30)] (29) 2,5-dimethoxy-4-ethylamphetamine. Some trade or other names: DOET. [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade or other names: 2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane; alpha-desmethyl DOB; 2C-B, Nexus. [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its optical isomers, salts and salts of isomers. § 6. Title 5-A of article 33 of the public health law is REPEALED. § 7. Section 3382 of the public health law, as added by chapter 878 of the laws of 1972, is amended to read as follows: § 3382. Growing of the plant known as Cannabis by unlicensed persons. A person who, without being licensed so to do under this article OR ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW, grows the plant of the genus Cannabis or knowingly allows it to grow on his land without destroying the same, shall be guilty of a class A misdemeanor. § 8. Subdivision 1 of section 3397-b of the public health law, as added by chapter 810 of the laws of 1980, is amended to read as follows: 1. ["Marijuana"] "CANNABIS" means [marijuana] CANNABIS as defined in [section thirty-three hundred two of this chapter] SUBDIVISION THREE OF SECTION THREE OF THE CANNABIS LAW and shall also include tetrahydrocan- nabinols or a chemical derivative of tetrahydrocannabinol. § 9. Subdivision 8 of section 1399-n of the public health law, as amended by chapter 13 of the laws of 2003, is amended to read as follows: 8. "Smoking" means the burning of a lighted cigar, cigarette, pipe or any other matter or substance which contains tobacco OR CANNABIS. § 10. Subdivisions 5, 6 and 9 of section 220.00 of the penal law, subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision 6 as amended by chapter 1051 of the laws of 1973 and subdivision 9 as amended by chapter 664 of the laws of 1985, are amended and a new subdi- vision 21 is added to read as follows: 5. "Controlled substance" means any substance listed in schedule I, II, III, IV or V of section thirty-three hundred six of the public health law other than [marihuana] CANNABIS AS DEFINED IN SUBDIVISION SIX OF THIS SECTION, but including concentrated cannabis as defined in [paragraph (a) of subdivision four of section thirty-three hundred two of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION. 6. ["Marihuana"] "CANNABIS" means ["marihuana" or "concentrated canna- bis" as those terms are defined in section thirty-three hundred two of the public health law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER GROWING OR NOT; THE SEEDS THEREOF; AND EVERY COMPOUND, MANUFAC- TURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE PLANT, OR ITS SEEDS. IT DOES NOT INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS, OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARA- TION OF THE MATURE STALKS, FIBER, OIL, OR CAKE, OR THE STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE ALL S. 1509--A 169 A. 2009--A PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC). 9. "Hallucinogen" means any controlled substance listed in schedule I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19), (20) AND (21). 21. "CONCENTRATED CANNABIS" MEANS: (A) THE SEPARATED RESIN, WHETHER CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A MATERIAL, PREPARATION, MIXTURE, COMPOUND OR OTHER SUBSTANCE WHICH CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI- NOL, OR ITS ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1 TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1 (6) MONOTERPENE NUMBERING SYSTEM. § 11. Subdivision 4 of section 220.06 of the penal law is REPEALED. § 12. Subdivision 10 of section 220.09 of the penal law is REPEALED. § 13. Subdivision 3 of section 220.34 of the penal law is REPEALED. 3. concentrated cannabis as defined in [paragraph (a) of subdivision four of section thirty-three hundred two of the public health law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or § 14. Section 220.50 of the penal law, as amended by chapter 627 of the laws of 1990, is amended to read as follows: § 220.50 Criminally using drug paraphernalia in the second degree. A person is guilty of criminally using drug paraphernalia in the second degree when he knowingly possesses or sells: 1. Diluents, dilutants or adulterants, including but not limited to, any of the following: quinine hydrochloride, mannitol, mannite, lactose or dextrose, adapted for the dilution of narcotic drugs or stimulants under circumstances evincing an intent to use, or under circumstances evincing knowledge that some person intends to use, the same for purposes of unlawfully mixing, compounding, or otherwise preparing any narcotic drug or stimulant, OTHER THAN CANNABIS OR CONCENTRATED CANNABIS; or 2. Gelatine capsules, glassine envelopes, vials, capsules or any other material suitable for the packaging of individual quantities of narcotic drugs or stimulants under circumstances evincing an intent to use, or under circumstances evincing knowledge that some person intends to use, the same for the purpose of unlawfully manufacturing, packaging or dispensing of any narcotic drug or stimulant, OTHER THAN CANNABIS OR CONCENTRATED CANNABIS; or 3. Scales and balances used or designed for the purpose of weighing or measuring controlled substances, under circumstances evincing an intent to use, or under circumstances evincing knowledge that some person intends to use, the same for purpose of unlawfully manufacturing, pack- aging or dispensing of any narcotic drug or stimulant, OTHER THAN CANNA- BIS OR CONCENTRATED CANNABIS. Criminally using drug paraphernalia in the second degree is a class A misdemeanor. § 15. Section 221.00 of the penal law, as amended by chapter 90 of the laws of 2014, is amended to read as follows: § 221.00 [Marihuana] CANNABIS; definitions. Unless the context in which they are used clearly otherwise requires, the terms occurring in this article shall have the same meaning ascribed to them in article two hundred twenty of this chapter. Any act that is lawful under [title five-A of article thirty-three of the public health] ARTICLES THREE, FOUR OR FIVE, OF THE CANNABIS law is not a violation of this article. S. 1509--A 170 A. 2009--A § 15-a. Section 221.00 of the penal law, as added by chapter 360 of the laws of 1977, is amended to read as follows: § 221.00 [Marihuana] CANNABIS; definitions. Unless the context in which they are used clearly otherwise requires, the terms occurring in this article shall have the same meaning ascribed to them in article two hundred twenty of this chapter. § 16. Section 221.05 of the penal law, as added by chapter 360 of the laws of 1977, is amended to read as follows: § 221.05 Unlawful possession of [marihuana] CANNABIS. A person is guilty of unlawful possession of [marihuana] CANNABIS when he OR SHE knowingly and unlawfully possesses [marihuana.]: 1. CANNABIS AND IS LESS THAN TWENTY-ONE YEARS OF AGE; OR 2. CANNABIS IN A PUBLIC PLACE, AS DEFINED IN SECTION 240.00 OF THIS PART, AND SUCH CANNABIS IS BURNING. Unlawful possession of [marihuana] CANNABIS is a violation punishable only by a fine of not more than [one hundred] FIFTY dollars[. However, where the defendant has previously been convicted of an offense defined in this article or article 220 of this chapter, committed within the three years immediately preceding such violation, it shall be punishable (a) only by a fine of not more than two hundred dollars, if the defend- ant was previously convicted of one such offense committed during such period, and (b) by a fine of not more than two hundred fifty dollars or a term of imprisonment not in excess of fifteen days or both, if the defendant was previously convicted of two such offenses committed during such period] WHEN SUCH POSSESSION IS BY A PERSON LESS THAN TWENTY-ONE YEARS OF AGE AND OF AN AGGREGATE WEIGHT OF LESS THAN ONE-HALF OF ONE OUNCE OR A FINE OF NOT MORE THAN ONE HUNDRED DOLLARS WHEN SUCH POSSESSION IS BY A PERSON LESS THAN TWENTY-ONE YEARS OF AGE AND OF AN AGGREGATE WEIGHT MORE THAN ONE-HALF OF ONE OUNCE BUT NOT MORE THAN ONE OUNCE. UNLAWFUL POSSESSION OF MARIJUANA IS PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS WHEN SUCH POSSESSION IS IN A PUBLIC PLACE AND SUCH CANNABIS IS BURNING. THE TERM BURNING IN THIS SECTION SHALL HAVE THE SAME MEANING AS THE TERM VAPING AS DEFINED IN SUBDIVISION EIGHT OF SECTION THIRTEEN HUNDRED NINETY-NINE-N OF THE PUBLIC HEALTH LAW. § 17. Section 221.15 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.15 Criminal possession of [marihuana] CANNABIS in the [fourth] THIRD degree. A person is guilty of criminal possession of [marihuana] CANNABIS in the [fourth] THIRD degree when he OR SHE knowingly and unlawfully possesses [one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of] an aggregate weight of more than [two ounces] ONE OUNCE OF CANNABIS OR MORE THAN FIVE GRAMS OF CONCENTRATED CANNABIS. Criminal possession of [marihuana] CANNABIS in the [fourth] THIRD degree is a [class A misdemeanor] VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO CERTIFIED PATIENTS OR DESIGNATED CAREGIVERS AS LAWFULLY REGISTERED UNDER ARTICLE THREE OF THE CANNABIS LAW. § 18. Section 221.20 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.20 Criminal possession of [marihuana] CANNABIS in the [third] SECOND degree. S. 1509--A 171 A. 2009--A A person is guilty of criminal possession of [marihuana] CANNABIS in the [third] SECOND degree when he OR SHE knowingly and unlawfully possesses [one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of] an aggregate weight of more than [eight] TWO ounces OF CANNABIS OR MORE THAN TEN GRAMS OF CONCENTRATED CANNABIS. Criminal possession of [marihuana] CANNABIS in the [third] SECOND degree is a class [E felony] A MISDEMEANOR PUNISHABLE BY A FINE NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS PER OUNCE POSSESSED IN EXCESS OF TWO OUNCES. HOWEVER, WHERE THE DEFENDANT HAS PREVIOUSLY BEEN CONVICTED OF AN OFFENSE DEFINED IN THIS ARTICLE OR ARTICLE TWO HUNDRED TWENTY OF THIS TITLE, COMMITTED WITHIN THE THREE YEARS IMMEDIATELY PRECEDING SUCH VIOLATION, IT SHALL BE PUNISHABLE (A) ONLY BY A FINE OF NOT MORE THAN TWO HUNDRED DOLLARS PER OUNCE POSSESSED IN EXCESS OF TWO OUNCES, IF THE DEFENDANT WAS PREVIOUSLY CONVICTED OF ONE SUCH OFFENSE COMMITTED DURING SUCH PERIOD, AND (B) BY A FINE OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS PER OUNCE POSSESSED IN EXCESS OF TWO OUNCES OR A TERM OF IMPRI- SONMENT NOT IN EXCESS OF FIFTEEN DAYS OR BOTH, IF THE DEFENDANT WAS PREVIOUSLY CONVICTED OF TWO SUCH OFFENSES COMMITTED DURING SUCH PERIOD. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO CERTIFIED PATIENTS OR DESIGNATED CAREGIVERS AS LAWFULLY REGISTERED UNDER ARTICLE THREE OF THE CANNABIS LAW. § 19. Section 221.25 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.25 Criminal possession of [marihuana] CANNABIS in the [second] FIRST degree. A person is guilty of criminal possession of [marihuana] CANNABIS in the [second] FIRST degree when he OR SHE knowingly and unlawfully possesses [one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of] an aggregate weight of more than [sixteen] SIXTY-FOUR ounces OF CANNABIS OR MORE THAN EIGHTY GRAMS OF CONCENTRATED CANNABIS. Criminal possession of [marihuana] CANNABIS in the [second] FIRST degree is a class [D] E felony. § 20. Sections 221.10 and 221.30 of the penal law are REPEALED. § 21. Section 221.35 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.35 Criminal sale of [marihuana] CANNABIS in the fifth degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the fifth degree when he OR SHE knowingly and unlawfully sells, [without] FOR consideration[, one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are] CANNABIS OR CANNABIS CONCENTRATE of [an aggregate weight of two grams or less; or one cigarette containing mari- huana] ANY WEIGHT. Criminal sale of [marihuana] CANNABIS in the fifth degree is a [class B misdemeanor] VIOLATION PUNISHABLE BY A FINE NOT MORE THAN THE GREATER OF TWO-HUNDRED AND FIFTY DOLLARS OR TWO TIMES THE VALUE OF THE SALE. § 22. Section 221.40 of the penal law, as added by chapter 360 of the laws of 1977, is amended to read as follows: § 221.40 Criminal sale of [marihuana] CANNABIS in the fourth degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the fourth degree when he OR SHE knowingly and unlawfully sells [marihuana except as provided in section 221.35 of this article] CANNABIS OF AN S. 1509--A 172 A. 2009--A AGGREGATE WEIGHT OF MORE THAN ONE OUNCE OR MORE THAN FIVE GRAMS OF CANNABIS CONCENTRATE. Criminal sale of [marihuana] CANNABIS in the fourth degree is a [class A] misdemeanor PUNISHABLE BY A FINE OF NOT MORE THAN THE GREATER OF FIVE HUNDRED DOLLARS OR TWO TIMES THE VALUE OF THE SALE OR A MAXIMUM OF THREE MONTHS IMPRISONMENT, OR BOTH. § 23. Section 221.45 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.45 Criminal sale of [marihuana] CANNABIS in the third degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the third degree when he OR SHE knowingly and unlawfully sells [one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of more than twenty-five grams] FOUR OUNCES OF CANNABIS OR MORE THAN TWENTY GRAMS OF CONCENTRATED CANNABIS. Criminal sale of [marihuana] CANNABIS in the third degree is a [class E felony] MISDEMEANOR PUNISHABLE BY A FINE OF NOT MORE THAN THE GREATER OF ONE THOUSAND DOLLARS OR TWO TIMES THE VALUE OF THE SALE OR A MAXIMUM OF ONE YEAR IMPRISONMENT OR BOTH. § 24. Section 221.50 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.50 Criminal sale of [marihuana] CANNABIS in the second degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the second degree when he knowingly and unlawfully sells [one or more prepa- rations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of] more than [four ounces, or knowingly and unlawfully sells one or more preparations, compounds, mixtures or substances containing mari- huana to a person less than eighteen years of age] SIXTEEN OUNCES OF CANNABIS OR MORE THAN EIGHTY GRAMS OF CONCENTRATED CANNABIS OR ANY AMOUNT OF CANNABIS OR CONCENTRATED CANNABIS TO ANY PERSON UNDER TWENTY- ONE YEARS OF AGE. Criminal sale of [marihuana] CANNABIS in the second degree is a class D felony. § 25. Section 221.55 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.55 Criminal sale of [marihuana] CANNABIS in the first degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the first degree when he knowingly and unlawfully sells [one or more prepa- rations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of] more than [sixteen] SIXTY-FOUR ounces OF CANNABIS OR THREE HUNDRED AND TWENTY GRAMS OF CANNABIS CONCENTRATE. Criminal sale of [marihuana] CANNABIS in the first degree is a class C felony. § 26. The penal law is amended by adding a new section 221.60 to read as follows: § 221.60 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION. THE PROVISIONS OF THIS ARTICLE AND OF ARTICLE TWO HUNDRED TWENTY OF THIS TITLE SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM CRIMINAL PENAL- TIES PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING, MANUFAC- TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING CANNABIS OR S. 1509--A 173 A. 2009--A CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI- ANCE WITH ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW. § 27. Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50 of the criminal procedure law, paragraphs (i) and (j) as added by chap- ter 905 of the laws of 1977, paragraph (k) as added by chapter 835 of the laws of 1977 and as relettered by chapter 192 of the laws of 1980 and such subdivision as renumbered by chapter 142 of the laws of 1991, are amended to read as follows: (i) prior to the filing of an accusatory instrument in a local crimi- nal court against such person, the prosecutor elects not to prosecute such person. In such event, the prosecutor shall serve a certification of such disposition upon the division of criminal justice services and upon the appropriate police department or law enforcement agency which, upon receipt thereof, shall comply with the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of this section in the same manner as is required thereunder with respect to an order of a court entered pursuant to said subdivision one[.]; OR (j) following the arrest of such person, the arresting police agency, prior to the filing of an accusatory instrument in a local criminal court but subsequent to the forwarding of a copy of the fingerprints of such person to the division of criminal justice services, elects not to proceed further. In such event, the head of the arresting police agency shall serve a certification of such disposition upon the division of criminal justice services which, upon receipt thereof, shall comply with the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of this section in the same manner as is required thereunder with respect to an order of a court entered pursuant to said subdivision one[.]; OR (k) (i) The accusatory instrument alleged a violation of article two hundred twenty or section 240.36 of the penal law, prior to the taking effect of article two hundred twenty-one of the penal law AND THE SOLE CONROLLED SUBSTANCE INVOLVED IS CANNABIS, or a violation of [article two hundred twenty-one] SECTION 221.05, 221.10 OR 221.35 of the penal law; [(ii) the sole controlled substance involved is marijuana; (iii) the conviction was only for a violation or violations; and (iv) at least three years have passed since the offense occurred.] NO DEFENDANT SHALL BE REQUIRED OR PERMITTED TO WAIVE ELIGIBILITY FOR SEALING PURSUANT TO THIS PARAGRAPH AS PART OF A PLEA OF GUILTY, SENTENCE OR ANY AGREEMENT. § 27-a. Paragraph (h) and subparagraph (ii) of paragraph (i) of subdi- vision 1 of section 440.10 of the criminal procedure law, paragraph (h) as amended by chapter 332 of the laws of 2010 and subparagraph (ii) of paragraph (i) as amended by chapter 368 of the laws of 2015, are amended and a new paragraph (j) is added to read as follows: (h) The judgment was obtained in violation of a right of the defendant under the constitution of this state or of the United States; [or] (ii) official documentation of the defendant's status as a victim of trafficking, compelling prostitution or trafficking in persons at the time of the offense from a federal, state or local government agency shall create a presumption that the defendant's participation in the offense was a result of having been a victim of sex trafficking, compel- ling prostitution or trafficking in persons, but shall not be required for granting a motion under this paragraph[.]; OR (J) THE JUDGMENT OCCURRED PRIOR TO THE EFFECTIVE DATE OF THIS PARA- GRAPH AND IS A CONVICTION FOR: (I) AN OFFENSE AS DEFINED BY SECTION 221.05 OR 221.10 OF THE PENAL LAW AS IN EFFECT PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH, PROVIDED THAT THE ACCUSATORY INSTRUMENT THAT S. 1509--A 174 A. 2009--A UNDERLIES THE JUDGMENT DOES NOT INCLUDE AN ALLEGATION THAT THE DEFENDANT POSSESSED MORE THAN TWENTY-FIVE GRAMS OF CANNABIS. § 28. Paragraph (f) of subdivision 2 of section 850 of the general business law is REPEALED. § 29. Paragraph (h) of subdivision 2 of section 850 of the general business law, as amended by chapter 812 of the laws of 1980, is amended to read as follows: (h) Objects, used or designed for the purpose of ingesting, inhaling, or otherwise introducing [marihuana,] cocaine, hashish, or hashish oil into the human body. § 30. Section 114-a of the vehicle and traffic law, as added by chap- ter 163 of the laws of 1973, is amended to read as follows: § 114-a. Drug. The term "drug" when used in this chapter, means and includes any substance listed in section thirty-three hundred six of the public health law AND ANY SUBSTANCE OR COMBINATION OF SUBSTANCES THAT IMPAIR, TO ANY EXTENT, PHYSICAL OR MENTAL ABILITIES. § 31. The article heading of article 20-B of the tax law, as added by chapter 90 of the laws of 2014, is amended to read as follows: ARTICLE 20-B EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS § 32. The paragraph heading and subparagraph (i) of paragraph (b) of subdivision 1 of section 1193 of the vehicle and traffic law, as amended by chapter 169 of the laws of 2013, are amended to read as follows: Driving while intoxicated or while ability impaired by drugs or while ability impaired by the combined influence of drugs or of alcohol and any drug or drugs; aggravated driving while intoxicated; misdemeanor offenses. (i) A violation of subdivision two, three, OR four [or four-a] of section eleven hundred ninety-two of this article shall be a misde- meanor and shall be punishable by a fine of not less than five hundred dollars nor more than one thousand dollars, or by imprisonment in a penitentiary or county jail for not more than one year, or by both such fine and imprisonment. A violation of paragraph (a) of subdivision two-a of section eleven hundred ninety-two of this article shall be a misde- meanor and shall be punishable by a fine of not less than one thousand dollars nor more than two thousand five hundred dollars or by imprison- ment in a penitentiary or county jail for not more than one year, or by both such fine and imprisonment. § 33. Paragraph (c) of subdivision 1 of section 1193 of the vehicle and traffic law, as amended by chapter 169 of the laws of 2013, is amended by adding a new subparagraph (i-a) to read as follows: (I-A) A VIOLATION OF SUBDIVISION FOUR-A OF SECTION ELEVEN HUNDRED NINETY-TWO OF THIS ARTICLE SHALL BE A CLASS E FELONY, AND SHALL BE PUNISHABLE BY A FINE OF NOT LESS THAN ONE THOUSAND DOLLARS NOR MORE THAN FIVE THOUSAND DOLLARS OR BY A PERIOD OF IMPRISONMENT AS PROVIDED IN THE PENAL LAW, OR BY BOTH SUCH FINE AND IMPRISONMENT. § 33-a. Paragraph (b) of subdivision 1 of section 1194 of the vehicle and traffic law, as amended by chapter 406 of the laws of 1988, is amended to read as follows: (b) Every person operating a motor vehicle which has been involved in an accident or which is operated in violation of any of the provisions of this chapter shall, at the request of a police officer, submit to a breath AND/OR SALIVA test to be administered by the police officer. If such test OR TESTS indicate[s] that such operator has consumed alcohol OR DRUG OR DRUGS, the police officer may request such operator to submit to a chemical test in the manner set forth in subdivision two of this section. S. 1509--A 175 A. 2009--A § 34. Subdivision 1 of section 171-a of the tax law, as amended by section 3 of part MM of chapter 59 of the laws of 2018, 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-C, 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 comp- troller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such articles of this chapter out of which amount the comptroller shall pay any refunds or reimbursements to which taxpayers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursu- ant to subdivision five of section one hundred seventy-one-d and subdi- vision six of section one hundred seventy-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is S. 1509--A 176 A. 2009--A certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall cred- it to the special offset fiduciary account, pursuant to section ninety- one-c of the state finance law, any such amount creditable as a liabil- ity as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commissioner as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by article twenty-two of this chap- ter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- ty-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corporation, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy- one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 35. Section 490 of the tax law, as added by chapter 90 of the laws of 2014, is amended to read as follows: § 490. [Definitions] EXCISE TAX ON MEDICAL CANNABIS. 1. (a) [All definitions of terms applicable to title five-A of article thirty-three of the public health law shall apply to this article.] FOR PURPOSES OF THIS ARTICLE, THE TERMS "MEDICAL CANNABIS," "REGISTERED ORGANIZATION," "CERTIFIED PATIENT," AND "DESIGNATED CAREGIVER" SHALL HAVE THE SAME DEFINITIONS AS IN SECTION THREE OF THE CANNABIS LAW. (b) As used in this section, where not otherwise specifically defined and unless a different meaning is clearly required "gross receipt" means the amount received in or by reason of any sale, conditional or other- wise, of medical [marihuana] CANNABIS or in or by reason of the furnish- ing of medical [marihuana] CANNABIS from the sale of medical [marihuana] CANNABIS provided by a registered organization to a certified patient or designated caregiver. Gross receipt is expressed in money, whether paid in cash, credit or property of any kind or nature, and shall be deter- mined without any deduction therefrom on account of the cost of the service sold or the cost of materials, labor or services used or other costs, interest or discount paid, or any other expenses whatsoever. "Amount received" for the purpose of the definition of gross receipt, as the term gross receipt is used throughout this article, means the amount charged for the provision of medical [marihuana] CANNABIS. S. 1509--A 177 A. 2009--A 2. There is hereby imposed an excise tax on the gross receipts from the sale of medical [marihuana] CANNABIS by a registered organization to a certified patient or designated caregiver, to be paid by the regis- tered organization, at the rate of seven percent. The tax imposed by this article shall be charged against and be paid by the registered organization and shall not be added as a separate charge or line item on any sales slip, invoice, receipt or other statement or memorandum of the price given to the retail customer. 3. The commissioner may make, adopt and amend rules, regulations, procedures and forms necessary for the proper administration of this article. 4. Every registered organization that makes sales of medical [marihua- na] CANNABIS subject to the tax imposed by this article shall, on or before the twentieth date of each month, file with the commissioner a return on forms to be prescribed by the commissioner, showing its receipts from the retail sale of medical [marihuana] CANNABIS during the preceding calendar month and the amount of tax due thereon. Such returns shall contain such further information as the commissioner may require. Every registered organization required to file a return under this section shall, at the time of filing such return, pay to the commission- er the total amount of tax due on its retail sales of medical [marihua- na] CANNABIS for the period covered by such return. If a return is not filed when due, the tax shall be due on the day on which the return is required to be filed. 5. Whenever the commissioner shall determine that any moneys received under the provisions of this article were paid in error, he may cause the same to be refunded, with interest, in accordance with such rules and regulations as he may prescribe, 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 tax, 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 tax 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 which the commissioner shall deter- mine were paid in error, may be refunded out of funds in the custody of the comptroller to the credit of such taxes provided an application therefor is filed with the commissioner within two years from the time the erroneous payment was made. 6. The provisions of article twenty-seven of this chapter shall apply to the tax imposed by this article in the same manner and with the same force and effect as if the language of such article had been incorpo- rated in full into this section and had expressly referred to the tax 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. 7. All taxes, interest and penalties 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, provided that an amount equal to one hundred percent collected under this article less any amount determined by the commissioner to be reserved by the comptroller for refunds or reimbursements shall be paid by the comptroller to the credit of the medical [marihuana] CANNABIS S. 1509--A 178 A. 2009--A trust fund established by section eighty-nine-h of the state finance law. 8. A registered organization that dispenses medical [marihuana] CANNA- BIS shall provide to the department information on where the medical [marihuana] CANNABIS was dispensed and where the medical [marihuana] CANNABIS was manufactured. A registered organization that obtains [mari- huana] CANNABIS from another registered organization shall obtain from such registered organization information on where the medical [marihua- na] CANNABIS was manufactured. § 36. Section 491 of the tax law, as added by chapter 90 of the laws of 2014, subdivision 1 as amended by section 1 of part II of chapter 60 of the laws of 2016, is amended to read as follows: § 491. 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 a distributor, owner or other person 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] OFFICE OF CANNABIS MANAGEMENT, 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 proceed- ing 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 arti- cle, when the returns or the reports or the facts shown thereby are directly involved in such action or proceeding, or in an action or proceeding relating to the regulation or taxation of medical [marihuana] CANNABIS on behalf of officers to whom information shall have been supplied as provided in subdivision two of this section, 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 there- by 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 of any information contained in any such return or report by or to a duly authorized offi- cer or employee of the [state department of health] OFFICE OF CANNABIS MANAGEMENT; or by or to the attorney general or other legal represen- tatives 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; or 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 tax paid by a registered organization or other person under this article; nor to prohibit the delivery to a registered organization, or a duly authorized S. 1509--A 179 A. 2009--A representative of such registered organization, a certified copy of any return or report filed by such registered organization 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. This section shall also not be construed to prohibit the disclosure, for tax administration purposes, to the division of the budget and the office of the state comptroller, of information aggre- gated from the returns filed by all the registered organizations making sales of, or manufacturing, medical [marihuana] CANNABIS in a specified county, whether the number of such registered organizations is one or more. Provided further that, notwithstanding the provisions of this subdivision, the commissioner may, in his or her discretion, permit the proper officer of any county entitled to receive an allocation, follow- ing appropriation by the legislature, pursuant to this article and section eighty-nine-h of the state finance law, or the authorized repre- sentative of such officer, to inspect any return filed under this arti- cle, or may furnish to such officer or the officer's authorized repre- sentative an abstract of any such return or supply such officer or such representative with information concerning an item contained in any such return, or disclosed by any investigation of tax liability under this article. 2. The commissioner, in his or her discretion and pursuant to such rules and regulations as he or she may adopt, may permit [the commis- sioner of internal revenue of the United States, or] the appropriate officers of any other state which regulates or taxes medical [marihuana] CANNABIS, or the duly authorized representatives of such [commissioner or of any such] officers, to inspect returns or reports made pursuant to this article, or may furnish to such [commissioner or] other officers, or duly authorized representatives, a copy of any such return or report or an abstract of the information therein contained, or any portion thereof, or may supply [such commissioner or] any such officers or such representatives with information relating to the business of a regis- tered organization making returns or reports hereunder. The commissioner may refuse to supply information pursuant to this subdivision [to the commissioner of internal revenue of the United States or] to the offi- cers of any other state if the statutes [of the United States, or] of the state represented by such officers, do not grant substantially simi- lar privileges to the commissioner, but such refusal shall not be manda- tory. Information shall not be supplied to [the commissioner of internal revenue of the United States or] the appropriate officers of any other state which regulates or taxes medical [marihuana] CANNABIS, or the duly authorized representatives [of such commissioner or] of any of such officers, unless such [commissioner,] officer or other representatives shall agree not to divulge or make known in any manner the information so supplied, but such officers may transmit such information to their employees or legal representatives when necessary, who in turn shall be subject to the same restrictions as those hereby imposed upon such [commissioner,] officer or other representatives. 3. (a) Any officer or employee of the state who willfully violates the provisions of subdivision one or two 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) Cross-reference: For criminal penalties, see article thirty-seven of this chapter. § 37. The tax law is amended by adding a new article 20-C to read as follows: S. 1509--A 180 A. 2009--A ARTICLE 20-C TAX ON ADULT-USE CANNABIS PRODUCTS SECTION 492. DEFINITIONS. 493. TAX ON CANNABIS. 494. REGISTRATION AND RENEWAL. 495. RETURNS AND PAYMENT OF TAX. 496. RETURNS TO BE KEPT SECRET. § 492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI- NITIONS SHALL APPLY: (A) "CANNABIS" MEANS ALL PARTS OF A PLANT OF THE GENUS CANNABIS, WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY PART OF THE PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN. FOR PURPOSES OF THIS ARTICLE, CANNABIS DOES NOT INCLUDE MEDICAL CANNABIS OR HEMP AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (B) "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA- BIS THAT HAS BEEN HARVESTED, DRIED, AND CURED, AND PRIOR TO ANY PROCESS- ING WHEREBY THE PLANT MATERIAL IS TRANSFORMED INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO, CONCENTRATED CANNABIS, OR AN EDIBLE OR TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS AND OTHER INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM. (C) "CANNABIS TRIM" MEANS ALL PARTS OF A PLANT OF THE GENUS CANNABIS OTHER THAN CANNABIS FLOWERS THAT HAVE BEEN HARVESTED, DRIED, AND CURED, AND PRIOR TO ANY PROCESSING WHEREBY THE PLANT MATERIAL IS TRANSFORMED INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO, CONCENTRATED CANNA- BIS, OR AN EDIBLE OR TOPICAL PRODUCT CONTAINING CANNABIS AND OTHER INGREDIENTS. (D) "ADULT-USE CANNABIS PRODUCT" MEANS A CANNABIS PRODUCT AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. FOR PURPOSES OF THIS ARTICLE, UNDER NO CIRCUMSTANCES SHALL ADULT-USE CANNABIS PRODUCT INCLUDE MEDICAL CANNABIS OR HEMP CANNABIS AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (E) "PERSON" MEANS EVERY INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE, RECEIVER, TRUSTEE, ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY A COURT OR OTHERWISE, AND ANY COMBINATION OF THE FOREGOING. (F) "WHOLESALER" MEANS ANY PERSON THAT SELLS OR TRANSFERS ADULT-USE CANNABIS PRODUCTS TO A RETAIL DISPENSARY LICENSED PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW. WHERE THE CULTIVATOR OR PROCESSOR IS ALSO THE RETAIL DISPENSARY, THE RETAIL DISPENSARY SHALL BE THE WHOLE- SALER FOR PURPOSES OF THIS ARTICLE. (G) "CULTIVATION" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO OF SECTION SIXTY-EIGHT OF THE CANNABIS LAW. (H) "RETAIL DISPENSARY" MEANS A DISPENSARY LICENSED TO SELL ADULT-USE CANNABIS PRODUCTS PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW. (I) "TRANSFER" MEANS TO GRANT, CONVEY, HAND OVER, ASSIGN, SELL, EXCHANGE OR BARTER, IN ANY MANNER OR BY ANY MEANS, WITH OR WITHOUT CONSIDERATION. (J) "SALE" MEANS ANY TRANSFER OF TITLE, POSSESSION OR BOTH, EXCHANGE OR BARTER, RENTAL, LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL OR OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A CONSIDERATION OR ANY AGREEMENT THEREFOR. (K) "PROCESSOR" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO OF SECTION SIXTY-NINE OF THE CANNABIS LAW. S. 1509--A 181 A. 2009--A § 493. TAX ON CANNABIS. (A) THERE IS HEREBY IMPOSED AND SHALL BE PAID A TAX ON THE CULTIVATION OF CANNABIS FLOWER AND CANNABIS TRIM AT THE RATE OF ONE DOLLAR PER DRY-WEIGHT GRAM OF CANNABIS FLOWER AND TWENTY- FIVE CENTS PER DRY-WEIGHT GRAM OF CANNABIS TRIM. WHERE THE WHOLESALER IS NOT THE CULTIVATOR, SUCH TAX SHALL BE COLLECTED FROM THE CULTIVATOR BY THE WHOLESALER AT THE TIME SUCH FLOWER OR TRIM IS TRANSFERRED TO THE WHOLESALER. WHERE THE WHOLESALER IS THE CULTIVATOR, SUCH TAX SHALL BE PAID BY THE WHOLESALER AND SHALL ACCRUE AT THE TIME OF SALE OR TRANSFER TO A RETAIL DISPENSARY. WHERE THE CULTIVATOR IS ALSO THE RETAIL DISPEN- SARY, SUCH TAX SHALL ACCRUE AT THE TIME OF THE SALE TO THE RETAIL CUSTOMER. (B) IN ADDITION TO THE TAX IMPOSED BY SUBDIVISION (A) OF THIS SECTION, THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A WHOLESALER TO A RETAIL DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, TO BE PAID BY SUCH WHOLESALER. WHERE THE WHOLESALER IS NOT THE RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE INVOICE PRICE CHARGED BY THE WHOLESALER TO A RETAIL DISPENSARY, AND SHALL ACCRUE AT THE TIME OF SUCH SALE. WHERE THE WHOLESALER IS THE RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE PRICE CHARGED TO THE RETAIL CUSTOMER AND SHALL ACCRUE AT THE TIME OF SUCH SALE. (C) IN ADDITION TO THE TAXES IMPOSED BY SUBDIVISIONS (A) AND (B) OF THIS SECTION, THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A WHOLESALER TO A RETAIL DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, IN TRUST FOR AND ON ACCOUNT OF THE COUNTY IN WHICH THE RETAIL DISPENSARY IS LOCATED. SUCH TAX SHALL BE PAID BY THE WHOLESALER AND SHALL ACCRUE AT THE TIME OF SUCH SALE. WHERE THE WHOLESALER IS NOT THE RETAIL DISPEN- SARY, SUCH TAX SHALL BE AT THE RATE OF TWO PERCENT OF THE INVOICE PRICE CHARGED BY THE WHOLESALER TO A RETAIL DISPENSARY. WHERE THE WHOLESALER IS THE RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF TWO PERCENT OF THE PRICE CHARGED TO THE RETAIL CUSTOMER. (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE TAXES IMPOSED BY ARTICLE TWENTY OF THIS CHAPTER SHALL NOT APPLY TO ANY PRODUCT SUBJECT TO TAX UNDER THIS ARTICLE. § 494. REGISTRATION AND RENEWAL. (A) EVERY WHOLESALER MUST FILE WITH THE COMMISSIONER A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION BEFORE ENGAGING IN BUSINESS. IN ORDER TO APPLY FOR SUCH CERTIFICATE OF REGISTRATION, SUCH PERSON MUST FIRST BE IN POSSESSION OF A VALID LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT. AN APPLICATION FOR A CERTIFICATE OF REGISTRATION MUST BE SUBMITTED ELECTRONICALLY, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND MUST BE ACCOMPANIED BY A NON- REFUNDABLE APPLICATION FEE OF SIX HUNDRED DOLLARS. A CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE AND SHALL BE DESTROYED IMMEDIATELY UPON SUCH PERSON CEASING TO DO BUSINESS AS SPECI- FIED IN SUCH CERTIFICATE, OR IN THE EVENT THAT SUCH BUSINESS NEVER COMMENCED. (B) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGISTRA- TION TO ANY APPLICANT AND SHALL REVOKE THE CERTIFICATE OF REGISTRATION OF ANY SUCH PERSON WHO DOES NOT POSSESS A VALID LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT. THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIF- ICATE OF REGISTRATION TO ANY APPLICANT WHERE SUCH APPLICANT: (1) HAS A PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVEN- TY-ONE-V OF THIS CHAPTER; (2) HAS HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE, A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT, OR ANY LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (3) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM S. 1509--A 182 A. 2009--A THE DATE ON WHICH SUCH APPLICATION WAS FILED OF THE CERTIFICATE'S ISSU- ANCE; (4) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTICLE; (5) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO BE GIVEN A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTI- CLE WHICH IS FALSE; OR (6) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE. (C) A CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE PERIOD SPECI- FIED THEREON, UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION OF THE TERM STATED ON A CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE SHALL BE NULL AND VOID. (D) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION MUST NOTIFY THE COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE CERTIF- ICATE, OR OF CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR THE CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS AND MUST BE MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER. (E) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE SHALL BE REQUIRED TO REAPPLY PRIOR TO SUCH CERTIFICATE'S EXPIRATION, DURING A REAPPLICATION PERIOD ESTABLISHED BY THE COMMISSIONER. SUCH REAPPLICATION PERIOD SHALL NOT OCCUR MORE FREQUENTLY THAN EVERY TWO YEARS. SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND CONDITIONS, INCLUDING GROUNDS FOR REFUSAL, AS AN INITIAL APPLICATION, INCLUDING THE PAYMENT OF THE APPLICATION FEE. (F) PENALTIES. A PERSON TO WHOM ADULT-USE CANNABIS PRODUCTS HAVE BEEN TRANSFERRED OR WHO SELLS ADULT-USE CANNABIS PRODUCTS WITHOUT A VALID CERTIFICATE OF REGISTRATION PURSUANT TO SUBDIVISION (A) OF THIS SECTION SHALL BE SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS FOR EACH MONTH OR PART THEREOF DURING WHICH SUCH PERSON CONTINUES TO POSSESS ADULT-USE CANNABIS PRODUCTS THAT HAVE BEEN TRANSFERRED TO SUCH PERSON OR WHO SELLS SUCH PRODUCTS AFTER THE EXPIRATION OF THE FIRST MONTH AFTER WHICH SUCH PERSON OPERATES WITHOUT A VALID CERTIFICATE OF REGISTRATION, NOT TO EXCEED TEN THOUSAND DOLLARS IN THE AGGREGATE. § 495. RETURNS AND PAYMENT OF TAX. (A) 1. EVERY WHOLESALER SHALL, ON OR BEFORE THE TWENTIETH DATE OF THE MONTH, FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE TOTAL WEIGHT OF CANNABIS FLOWER AND CANNABIS TRIM SUBJECT TO TAX PURSUANT TO SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE AND THE TOTAL AMOUNT OF TAX DUE THEREON IN THE PRECEDING CALENDAR MONTH, AND THE TOTAL AMOUNT OF TAX DUE UNDER SUBDIVISIONS (B) AND (C) OF SUCH SECTION ON ITS SALES TO A RETAIL DISPENSARY DURING THE PRECEDING CALEN- DAR MONTH, ALONG WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. EVERY PERSON REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF TAX DUE FOR THE PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED WHEN DUE, THE TAX SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED. 2. THE WHOLESALER SHALL MAINTAIN SUCH RECORDS IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE REGARDING SUCH ITEMS AS: WHERE THE WHOLESALER IS NOT THE CULTIVATOR, THE WEIGHT OF THE CANNABIS FLOWER AND CANNABIS TRIM TRANSFERRED TO IT BY A CULTIVATOR OR, WHERE THE WHOLESALER IS THE CULTIVATOR, THE WEIGHT OF SUCH FLOWER AND TRIM PRODUCED BY IT; THE GEOGRAPHIC LOCATION OF EVERY RETAIL DISPENSARY TO WHICH IT SOLD ADULT- USE CANNABIS PRODUCTS; AND ANY OTHER RECORD OR INFORMATION REQUIRED BY THE COMMISSIONER. THIS INFORMATION MUST BE KEPT BY SUCH PERSON FOR A PERIOD OF THREE YEARS AFTER THE RETURN WAS FILED. S. 1509--A 183 A. 2009--A (B) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCORPO- RATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE TAX 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. (C) 1. ALL TAXES, INTEREST, AND PENALTIES 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, PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT COLLECTED UNDER THIS ARTICLE LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO BE RESERVED BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE PAID BY THE COMPTROLLER TO THE CREDIT OF THE CANNABIS REVENUE FUND ESTAB- LISHED BY SECTION NINETY-NINE-FF OF THE STATE FINANCE LAW. 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. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE REGISTRATION FEES UNDER SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY- FOUR OF THIS ARTICLE, BEFORE DEPOSIT INTO THE CANNABIS REVENUE FUND DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTU- ATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPART- MENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT, AND DISTRIBUTE THE TAXES IMPOSED BY THIS ARTICLE. 2. NOTWITHSTANDING THE FOREGOING, THE COMMISSIONER SHALL CERTIFY TO THE COMPTROLLER THE TOTAL AMOUNT OF TAX, PENALTY AND INTEREST RECEIVED BY HIM OR HER ON ACCOUNT OF THE TAX IMPOSED BY SUBDIVISION (C) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE IN TRUST FOR AND ON ACCOUNT OF EACH COUNTY IN WHICH A RETAIL DISPENSARY IS LOCATED. ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMPTROLLER, AFTER RESERVING SUCH REFUND FUND, SHALL PAY TO THE APPROPRIATE FISCAL OFFICER OF EACH SUCH COUNTY THE TAXES, PENALTIES AND INTEREST RECEIVED AND CERTIFIED BY THE COMMISSIONER FOR THE PRECEDING CALENDAR MONTH. § 496. RETURNS TO BE KEPT SECRET. (A) EXCEPT IN ACCORDANCE WITH PROPER JUDICIAL ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS PERMITTED 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 INFOR- MATION CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, 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 CONTENT OR ANY OTHER INFORMATION RELATED TO THE BUSINESS OF THE WHOLESALER 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 OFFICE OF CANNABIS MANAGEMENT, OR THE COMMISSIONER IN AN ACTION OR PROCEEDING INVOLVING THE COLLECTION OF 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 PROCEED- ING, OR IN AN ACTION OR PROCEEDING RELATED TO THE REGULATION OR TAXATION OF ADULT-USE CANNABIS PRODUCTS ON BEHALF OF OFFICERS TO WHOM INFORMATION SHALL HAVE BEEN SUPPLIED AS PROVIDED IN THIS SECTION, IN ANY OF WHICH S. 1509--A 184 A. 2009--A EVENTS THE COURTS MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE- BY 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 OF ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT BY OR TO A DULY AUTHORIZED OFFI- CER OR EMPLOYEE OF THE OFFICE OF CANNABIS MANAGEMENT OR 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; OR 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 TAX PAID BY THE WHOLESALER UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO SUCH PERSON OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH PERSON, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH PERSON 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. THIS SECTION SHALL ALSO NOT BE CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX ADMINISTRATION PURPOSES, TO THE DIVISION OF THE BUDGET AND THE OFFICE OF THE STATE COMPTROLLER, OF INFORMATION AGGREGATED FROM THE RETURNS FILED BY ALL WHOLESALERS PURCHASING AND SELLING SUCH PRODUCTS IN THE STATE, WHETHER THE NUMBER OF SUCH PERSONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVISION, THE COMMISSIONER MAY IN HIS OR HER DISCRETION, PERMIT THE PROPER OFFICER OF ANY COUNTY ENTITLED TO RECEIVE ANY DISTRIBUTION OF THE MONIES RECEIVED ON ACCOUNT OF THE TAX IMPOSED BY SUBDIVISION (C) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE, OR THE AUTHORIZED REPRESENTATIVE OF SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR THE OFFI- CER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH OFFICER OR REPRESENTATIVE WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER THIS ARTICLE. (B) THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY PERMIT THE APPRO- PRIATE OFFICERS OF ANY OTHER STATE THAT REGULATES OR TAXES CANNABIS OR THE DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY SUCH OFFICERS, TO INSPECT RETURNS OR REPORTS MADE PURSUANT TO THIS ARTICLE, OR MAY FURNISH TO THE COMMISSIONER OR OTHER OFFICER, OR DULY AUTHORIZED REPRESENTATIVES, A COPY OF ANY SUCH RETURN OR REPORT OR AN ABSTRACT OF THE INFORMATION THEREIN CONTAINED, OR ANY PORTION THEREOF, OR MAY SUPPLY SUCH COMMISSIONER OR ANY SUCH OFFICERS OR SUCH REPRESENTATIVES WITH INFORMATION RELATING TO THE BUSINESS OF A WHOLESALER MAKING RETURNS OR REPORTS HEREUNDER SOLELY FOR PURPOSES OF TAX ADMINISTRATION. THE COMMIS- SIONER MAY REFUSE TO SUPPLY INFORMATION PURSUANT TO THIS SUBDIVISION TO THE OFFICERS OF ANY OTHER STATE IF THE STATUTES OF THE STATE REPRESENTED BY SUCH OFFICERS DO NOT GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE COMMISSIONER, BUT SUCH REFUSAL SHALL NOT BE MANDATORY. INFORMATION SHALL NOT BE SUPPLIED TO THE APPROPRIATE OFFICERS OF ANY STATE THAT REGULATES OR TAXES CANNABIS, OR THE DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY SUCH OFFICERS, UNLESS SUCH COMMISSIONER, OFFICER, OR OTHER REPRESENTATIVES SHALL AGREE NOT TO DIVULGE OR MAKE KNOWN IN ANY MANNER THE INFORMATION SO SUPPLIED, BUT SUCH OFFICERS MAY TRANSMIT SUCH INFORMATION TO THEIR EMPLOYEES OR LEGAL REPRESENTATIVES WHEN NECESSARY, S. 1509--A 185 A. 2009--A WHO IN TURN SHALL BE SUBJECT TO THE SAME RESTRICTIONS AS THOSE HEREBY IMPOSED UPON SUCH COMMISSIONER, OFFICER OR OTHER REPRESENTATIVES. (C) 1. ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE PROVISIONS OF SUBDIVISION ONE OR TWO OF THIS SECTION SHALL BE DISMISSED FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THE STATE FOR A PERIOD OF FIVE YEARS THEREAFTER. 2. FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 38. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 3-b to read as follows: (3-B) ADULT-USE CANNABIS PRODUCTS AS DEFINED BY ARTICLE TWENTY-C OF THIS CHAPTER. § 39. Section 1825 of the tax law, as amended by section 3 of part NNN of chapter 59 of the laws of 2018, is amended to read as follows: § 1825. Violation of secrecy provisions of the tax law.--Any person who violates the SECRECY provisions of [subdivision (b) of section twen- ty-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-sev- en, subsection (a) of section nine hundred ninety-four, subdivision (a) of section eleven hundred forty-six, section twelve hundred eighty-sev- en, section twelve hundred ninety-six, section twelve hundred ninety- nine-F, subdivision (a) of section fourteen hundred eighteen, subdivi- sion (a) of section fifteen hundred eighteen, subdivision (a) of section fifteen hundred fifty-five of] this chapter, [and] OR subdivision (e) of section 11-1797 of the administrative code of the city of New York shall be guilty of a misdemeanor. § 40. Section 12 of chapter 90 of the laws of 2014 amending the public health law, the tax law, the state finance law, the general business law, the penal law and the criminal procedure law relating to medical use of marihuana, is amended to read as follows: § 12. This act shall take effect immediately [and]; PROVIDED, HOWEVER THAT SECTIONS ONE, THREE, FIVE, SIX, SEVEN-A, EIGHT, NINE, TEN AND ELEV- EN OF THIS ACT shall expire and be deemed repealed seven years after such date; provided that the amendments to section 171-a of the tax law made by section seven of this act shall take effect on the same date and in the same manner as section 54 of part A of chapter 59 of the laws of 2014 takes effect AND SHALL NOT EXPIRE AND BE DEEMED REPEALED; and provided, further, that the amendments to subdivision 5 of section 410.91 of the criminal procedure law made by section eleven of this act shall not affect the expiration and repeal of such section and shall expire and be deemed repealed therewith. § 41. The office of cannabis management, in consultation with the division of the budget, the department of taxation and finance, the department of health, office of alcoholism and substance abuse services, office of mental health, New York state police and the division of crim- inal justice services, shall conduct a study of the effectiveness of this act. Such study shall examine all aspects of this act, including economic and fiscal impacts, the impact on the public health and safety of New York residents and the progress made in achieving social justice goals and toward eliminating the illegal market for cannabis products in New York. The office shall make recommendations regarding the appropri- ate level of taxation of adult-use cannabis, as well as changes, if any, necessary to improve and protect the public health and safety of New Yorkers. Such study shall be conducted two years after the effective S. 1509--A 186 A. 2009--A date of this act and shall be presented to the governor, the majority leader of the senate and the speaker of the assembly, no later than October 1, 2022. § 42. Section 102 of the alcoholic beverage control law is amended by adding a new subdivision 8 to read as follows: 8. NO ALCOHOLIC BEVERAGE RETAIL LICENSEE SHALL SELL CANNABIS, NOR HAVE OR POSSESS A LICENSE OR PERMIT TO SELL CANNABIS, ON THE SAME PREMISES WHERE ALCOHOLIC BEVERAGES ARE SOLD. § 43. Subdivisions 1, 4, 5, 6, 7 and 13 of section 12-102 of the general obligations law, as added by chapter 406 of the laws of 2000, are amended to read as follows: 1. "Illegal drug" means any controlled substance [or marijuana] the possession of which is an offense under the public health law or the penal law. 4. "Grade one violation" means possession of one-quarter ounce or more, but less than four ounces, or distribution of less than one ounce of an illegal drug [other than marijuana, or possession of one pound or twenty-five plants or more, but less than four pounds or fifty plants, or distribution of less than one pound of marijuana]. 5. "Grade two violation" means possession of four ounces or more, but less than eight ounces, or distribution of one ounce or more, but less than two ounces, of an illegal drug [other than marijuana, or possession of four pounds or more or fifty plants or distribution of more than one pound but less than ten pounds of marijuana]. 6. "Grade three violation" means possession of eight ounces or more, but less than sixteen ounces, or distribution of two ounces or more, but less than four ounces, of a specified illegal drug [or possession of eight pounds or more or seventy-five plants or more, but less than sixteen pounds or one hundred plants, or distribution of more than five pounds but less than ten pounds of marijuana]. 7. "Grade four violation" means possession of sixteen ounces or more or distribution of four ounces or more of a specified illegal drug [or possession of sixteen pounds or more or one hundred plants or more or distribution of ten pounds or more of marijuana]. 13. "Drug trafficker" means a person convicted of a class A or class B felony controlled substance [or marijuana offense] who, in connection with the criminal conduct for which he or she stands convicted, possessed, distributed, sold or conspired to sell a controlled substance [or marijuana] which, by virtue of its quantity, the person's prominent role in the enterprise responsible for the sale or distribution of such controlled substance and other circumstances related to such criminal conduct indicate that such person's criminal possession, sale or conspiracy to sell such substance was not an isolated occurrence and was part of an ongoing pattern of criminal activity from which such person derived substantial income or resources and in which such person played a leadership role. § 44. Paragraph (g) of subdivision 1 of section 488 of the social services law, as added by section 1 of part B of chapter 501 of the laws of 2012, is amended to read as follows: (g) "Unlawful use or administration of a controlled substance," which shall mean any administration by a custodian to a service recipient of: a controlled substance as defined by article thirty-three of the public health law, without a prescription; or other medication not approved for any use by the federal food and drug administration, EXCEPT FOR THE ADMINISTRATION OF MEDICAL CANNABIS WHEN SUCH ADMINISTRATION IS IN ACCORDANCE WITH ARTICLE THREE OF THE CANNABIS LAW AND ANY REGULATIONS S. 1509--A 187 A. 2009--A PROMULGATED THEREUNDER AS WELL AS THE RULES, REGULATIONS, POLICIES, OR PROCEDURES OF THE STATE OVERSIGHT AGENCY OR AGENCIES GOVERNING SUCH CUSTODIANS. It also shall include a custodian unlawfully using or distributing a controlled substance as defined by article thirty-three of the public health law, at the workplace or while on duty. § 45. Paragraphs (e) and (f) of subdivision 1 of section 490 of the social services law, as added by section 1 of part B of chapter 501 of the laws of 2012, are amended and a new paragraph (g) is added to read as follows: (e) information regarding individual reportable incidents, incident patterns and trends, and patterns and trends in the reporting and response to reportable incidents is shared, consistent with applicable law, with the justice center, in the form and manner required by the justice center and, for facilities or provider agencies that are not state operated, with the applicable state oversight agency which shall provide such information to the justice center; [and] (f) incident review committees are established; provided, however, that the regulations may authorize an exemption from this requirement, when appropriate, based on the size of the facility or provider agency or other relevant factors. Such committees shall be composed of members of the governing body of the facility or provider agency and other persons identified by the director of the facility or provider agency, including some members of the following: direct support staff, licensed health care practitioners, service recipients and representatives of family, consumer and other advocacy organizations, but not the director of the facility or provider agency. Such committee shall meet regularly to: (i) review the timeliness, thoroughness and appropriateness of the facility or provider agency's responses to reportable incidents; (ii) recommend additional opportunities for improvement to the director of the facility or provider agency, if appropriate; (iii) review incident trends and patterns concerning reportable incidents; and (iv) make recommendations to the director of the facility or provider agency to assist in reducing reportable incidents. Members of the committee shall be trained in confidentiality laws and regulations, and shall comply with section seventy-four of the public officers law[.]; AND (G) SAFE STORAGE, ADMINISTRATION, AND DIVERSION PREVENTION POLICIES REGARDING CONTROLLED SUBSTANCES AND MEDICAL MARIHUANA. § 46. Subdivision 1 of section 505 of the agriculture and markets law, as added by chapter 524 of the laws of 2014, is amended to read as follows: 1. "Industrial hemp" means the plant Cannabis sativa L. and any part of such plant, INCLUDING THE SEEDS THEREOF AND ALL DERIVATIVES, EXTRACTS, CANNABINOIDS, ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS, whether growing or not, with a delta-9 tetrahydrocannabinol concen- tration of not more than 0.3 percent on a dry weight basis. § 47. Section 506 of the agriculture and markets law, as amended by section 1 of part OO of chapter 58 of the laws of 2017, is amended to read as follows: § 506. Growth, sale, distribution, transportation and processing of industrial hemp and products derived from such hemp permitted. [Notwith- standing any provision of law to the contrary, industrial] 1. INDUSTRIAL hemp and products derived from such hemp are agricultural products which may be grown, produced [and], possessed [in the state, and], sold, distributed, transported [or] AND/OR processed [either] in [or out of] state [as part of agricultural pilot programs pursuant to authorization under federal law and the provisions of this article] PURSUANT TO S. 1509--A 188 A. 2009--A AUTHORIZATION UNDER FEDERAL LAW, THE PROVISIONS OF THIS ARTICLE AND/OR THE THE CANNABIS LAW. [Notwithstanding any provision of law to the contrary restricting the growing or cultivating, sale, distribution, transportation or processing of industrial hemp and products derived from such hemp, and subject to authorization under federal law, the] 2. THE commissioner may authorize the growing or cultivating of indus- trial hemp as part of agricultural pilot programs conducted by the department and/or an institution of higher education to study the growth and cultivation, sale, distribution, transportation and processing of such hemp and products derived from such hemp provided that the sites and programs used for growing or cultivating industrial hemp are certi- fied by, and registered with, the department. 3. IN ADDITION TO THE DEPARTMENT'S LICENSING AUTHORITY HEREINAFTER PROVIDED IN THIS ARTICLE, THE OFFICE OF CANNABIS MANAGEMENT SHALL LICENSE AND REGULATE THE GROWTH, EXTRACTION, PROCESSING AND/OR MANUFAC- TURING OF HEMP FOR DERIVATIVES, EXTRACTS, CANNABINOIDS, ISOMERS, ACIDS, SALTS AND SALTS OR ISOMERS AND/OR HEMP PRODUCTS FOR HUMAN OR ANIMAL CONSUMPTION OR USE (EXCEPT FOR THOSE FOOD AND/OR FOOD INGREDIENTS THAT ARE GENERALLY RECOGNIZED AS SAFE). 4. NOTHING IN THIS SECTION SHALL LIMIT THE JURISDICTION OF THE DEPART- MENT UNDER ANY OTHER ARTICLE OF THE AGRICULTURE AND MARKETS LAW. § 48. Section 507 of the agriculture and markets law is REPEALED and a new section 507 is added to read as follows: § 507. LICENSING; FEES. 1. NO PERSON SHALL: (A) GROW INDUSTRIAL HEMP IN THE STATE AND/OR SELL OR DISTRIBUTE INDUSTRIAL HEMP GROWN IN THE STATE UNLESS LICENSED BIENNIALLY BY THE COMMISSIONER OR (B) GROW, PROC- ESS AND/OR PRODUCE INDUSTRIAL HEMP AND PRODUCTS DERIVED FROM HEMP IN THE STATE OR SELL OR DISTRIBUTE UNLESS AUTHORIZED BY THE COMMISSIONER AS PART OF AN AGRICULTURAL RESEARCH PILOT PROGRAM ESTABLISHED UNDER THIS ARTICLE. 2. APPLICATION FOR A LICENSE TO GROW INDUSTRIAL HEMP SHALL BE MADE UPON A FORM PRESCRIBED BY THE COMMISSIONER, ACCOMPANIED BY A NON-REFUND- ABLE APPLICATION FEE OF FIVE HUNDRED DOLLARS. 3. THE APPLICANT SHALL FURNISH EVIDENCE OF HIS OR HER GOOD CHARACTER, EXPERIENCE AND COMPETENCY, THAT THE APPLICANT HAS ADEQUATE FACILITIES, EQUIPMENT, PROCESS CONTROLS, TESTING CAPABILITY AND SECURITY TO GROW HEMP. 4. GROWERS WHO INTEND TO CULTIVATE HEMP FOR CANNABINOIDS SHALL ALSO BE REQUIRED TO OBTAIN A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT. 5. A RENEWAL APPLICATION SHALL BE SUBMITTED TO THE COMMISSIONER AT LEAST THIRTY DAYS PRIOR TO THE COMMENCEMENT OF THE NEXT LICENSE PERIOD. § 49. Section 508 of the agriculture and markets law is REPEALED and a new section 508 is added to read as follows: § 508. COMPLIANCE ACTION PLAN. IF THE COMMISSIONER DETERMINES, AFTER NOTICE AND AN OPPORTUNITY FOR HEARING, THAT A LICENSEE HAS NEGLIGENTLY VIOLATED A PROVISION OF THIS ARTICLE, THAT LICENSEE SHALL BE REQUIRED TO COMPLY WITH A CORRECTIVE ACTION PLAN ESTABLISHED BY THE COMMISSIONER TO CORRECT THE VIOLATION BY A REASONABLE DATE AND TO PERIODICALLY REPORT TO THE COMMISSIONER WITH RESPECT TO THE LICENSEE'S COMPLIANCE WITH THIS ARTICLE FOR A PERIOD OF NO LESS THAN THE NEXT TWO CALENDAR YEARS FOLLOW- ING THE COMMENCEMENT DATE OF THE COMPLIANCE ACTION PLAN. THE PROVISIONS OF THIS SECTION SHALL NOT BE APPLICABLE TO RESEARCH PARTNERS CONDUCTING HEMP RESEARCH PURSUANT TO A RESEARCH PARTNER AGREEMENT, THE TERMS OF WHICH SHALL CONTROL. § 50. Section 509 of the agriculture and markets law is REPEALED and a new section 509 is added to read as follows: S. 1509--A 189 A. 2009--A § 509. GRANTING, SUSPENDING OR REVOKING LICENSES. THE COMMISSIONER MAY DECLINE TO GRANT A NEW LICENSE, MAY DECLINE TO RENEW A LICENSE, MAY SUSPEND OR REVOKE A LICENSE ALREADY GRANTED AFTER DUE NOTICE AND OPPOR- TUNITY FOR HEARING WHENEVER HE OR SHE FINDS THAT: (1) ANY STATEMENT CONTAINED IN AN APPLICATION FOR AN APPLICANT OR LICENSEE IS OR WAS FALSE OR MISLEADING; (2) THE APPLICANT OR LICENSEE DOES NOT HAVE GOOD CHARACTER, THE REQUIRED EXPERIENCE AND/OR COMPETENCY, ADEQUATE FACILITIES, EQUIPMENT, PROCESS CONTROLS, TESTING CAPABILITY AND/OR SECURITY TO PRODUCE HEMP OR PRODUCTS DERIVED FROM HEMP; (3) THE APPLICANT OR LICENSEE HAS FAILED OR REFUSED TO PRODUCE ANY RECORDS OR PROVIDE ANY INFORMATION DEMANDED BY THE COMMISSIONER REASON- ABLY RELATED TO THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE; OR (4) THE APPLICANT OR LICENSEE, OR ANY OFFICER, DIRECTOR, PARTNER, HOLDER OF TEN PERCENT OF THE VOTING STOCK, OR ANY OTHER PERSON EXERCIS- ING ANY POSITION OF MANAGEMENT OR CONTROL HAS FAILED TO COMPLY WITH ANY OF THE PROVISIONS OF THIS ARTICLE OR RULES AND REGULATIONS PROMULGATED PURSUANT THERETO. § 51. Section 510 of the agriculture and markets law is REPEALED and a new section 510 is added to read as follows: § 510. REGULATIONS. THE COMMISSIONER MAY DEVELOP REGULATIONS CONSIST- ENT WITH THE PROVISIONS OF THIS ARTICLE FOR THE GROWING AND CULTIVATION, SALE, DISTRIBUTION, AND TRANSPORTATION OF INDUSTRIAL HEMP GROWN IN THE STATE, INCLUDING: (A) THE AUTHORIZATION OR LICENSING OF ANY PERSON WHO MAY: ACQUIRE OR POSSESS HEMP PLANTS OR SEEDS; GROW OR CULTIVATE HEMP PLANTS; AND/OR SELL, PURCHASE, DISTRIBUTE, OR TRANSPORT SUCH PLANTS, PLANT PARTS, OR SEEDS; (B) MAINTAINING RELEVANT INFORMATION REGARDING LAND ON WHICH INDUS- TRIAL HEMP IS PRODUCED WITHIN THE STATE, INCLUDING THE LEGAL DESCRIPTION OF THE LAND, FOR A PERIOD OF NOT LESS THAN THREE CALENDAR YEARS; (C) THE PROCEDURE FOR TESTING OF INDUSTRIAL HEMP PRODUCED IN THE STATE FOR DELTA-9 TETRAHYDROCANNABINOL LEVELS, USING POST DECARBOXYLATION OR OTHER SIMILARLY RELIABLE METHODS; (D) THE PROCEDURE FOR EFFECTIVE DISPOSAL OF INDUSTRIAL HEMP PLANTS OR PRODUCTS DERIVED FROM HEMP THAT ARE PRODUCED IN VIOLATION OF THIS ARTI- CLE; (E) A PROCEDURE FOR CONDUCTING AT LEAST A RANDOM SAMPLE OF INDUSTRIAL HEMP PRODUCERS TO VERIFY THAT HEMP IS NOT PRODUCED IN VIOLATION OF THIS ARTICLE; (F) ANY REQUIRED SECURITY MEASURES; AND (G) SUCH OTHER AND FURTHER REGULATION AS THE COMMISSIONER DEEMS APPRO- PRIATE OR NECESSARY. § 52. Section 511 of the agriculture and markets law is REPEALED and a new section 511 is added to read as follows: § 511. PROHIBITIONS. EXCEPT AS AUTHORIZED BY STATE LAW, AND REGU- LATIONS PROMULGATED THEREUNDER, THE GROWTH, CULTIVATION, PROCESSING, SALE, AND/OR DISTRIBUTION OF INDUSTRIAL HEMP IS PROHIBITED. § 53. Section 512 of the agriculture and markets law is REPEALED and a new section 512 is added to read as follows: § 512. INDUSTRIAL HEMP DATA COLLECTION AND BEST FARMING PRACTICES. THE COMMISSIONER SHALL HAVE THE POWER TO COLLECT AND PUBLISH DATA AND RESEARCH CONCERNING, AMONG OTHER THINGS, THE GROWTH, CULTIVATION, PRODUCTION AND PROCESSING METHODS OF INDUSTRIAL HEMP AND PRODUCTS DERIVED FROM INDUSTRIAL HEMP AND WORK WITH THE CORNELL COOPERATIVE EXTENSION TO PROMOTE BEST FARMING PRACTICES FOR INDUSTRIAL HEMP WHICH S. 1509--A 190 A. 2009--A ARE COMPATIBLE WITH STATE WATER QUALITY AND OTHER ENVIRONMENTAL OBJEC- TIVES. § 54. Sections 513 and 514 of the agriculture and markets law are REPEALED and a new section 513 is added to read as follows: § 513. ACCESS TO CRIMINAL HISTORY INFORMATION THROUGH THE DIVISION OF CRIMINAL JUSTICE SERVICES. IN CONNECTION WITH THE ADMINISTRATION OF THIS ARTICLE, THE COMMISSIONER IS AUTHORIZED TO REQUEST, RECEIVE AND REVIEW CRIMINAL HISTORY INFORMATION THROUGH THE DIVISION OF CRIMINAL JUSTICE SERVICES (DIVISION) WITH RESPECT TO ANY PERSON SEEKING A LICENSE OR AUTHORIZATION TO UNDERTAKE A HEMP PILOT PROJECT. AT THE COMMISSION- ER'S REQUEST, EACH RESEARCHER, PRINCIPAL AND/OR OFFICER OF THE APPLICANT SHALL SUBMIT TO THE DEPARTMENT HIS OR HER FINGERPRINTS IN SUCH FORM AND IN SUCH MANNER AS SPECIFIED BY THE DIVISION, FOR THE PURPOSE OF CONDUCT- ING A CRIMINAL HISTORY SEARCH AND RETURNING A REPORT THEREON IN ACCORD- ANCE WITH THE PROCEDURES AND REQUIREMENTS ESTABLISHED BY THE DIVISION PURSUANT TO THE PROVISIONS OF ARTICLE THIRTY-FIVE OF THE EXECUTIVE LAW, WHICH SHALL INCLUDE THE PAYMENT OF THE PRESCRIBED PROCESSING FEES FOR THE COST OF THE DIVISION'S FULL SEARCH AND RETAIN PROCEDURES AND A NATIONAL CRIMINAL HISTORY RECORD CHECK. THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL SUBMIT SUCH FINGERPRINTS AND THE PROCESSING FEE TO THE DIVISION. THE DIVISION SHALL FORWARD TO THE COMMISSIONER A REPORT WITH RESPECT TO THE APPLICANT'S PREVIOUS CRIMINAL HISTORY, IF ANY, OR A STATEMENT THAT THE APPLICANT HAS NO PREVIOUS CRIMINAL HISTORY ACCORDING TO ITS FILES. FINGERPRINTS SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE SERVICES PURSUANT TO THIS SUBDIVISION MAY ALSO BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK. IF ADDITIONAL COPIES OF FINGERPRINTS ARE REQUIRED, THE APPLICANT SHALL FURNISH THEM UPON REQUEST. § 55. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the penal law, as added by chapter 90 of the laws of 2014, are amended to read as follows: § 179.00 Criminal diversion of medical [marihuana] CANNABIS; defi- nitions. The following definitions are applicable to this article: 1. "Medical [marihuana] CANNABIS" means medical [marihuana] CANNABIS as defined in [subdivision eight of section thirty-three hundred sixty of the public health law] SECTION THREE OF THE CANNABIS LAW. 2. "Certification" means a certification, made under section [thirty- three hundred sixty-one of the public health law] THIRTY OF THE CANNABIS LAW. § 179.05 Criminal diversion of medical [marihuana] CANNABIS; limita- tions. The provisions of this article shall not apply to: 1. a practitioner authorized to issue a certification who acted in good faith in the lawful course of his or her profession; or 2. a registered organization as that term is defined in [subdivision nine of section thirty-three hundred sixty of the public health law] SECTION THIRTY-FOUR OF THE CANNABIS LAW who acted in good faith in the lawful course of the practice of pharmacy; or 3. a person who acted in good faith seeking treatment for A medical condition or assisting another person to obtain treatment for a medical condition. § 179.10 Criminal diversion of medical [marihuana] CANNABIS in the first degree. A person is guilty of criminal diversion of medical [marihuana] CANNA- BIS in the first degree when he or she is a practitioner, as that term S. 1509--A 191 A. 2009--A is defined in [subdivision twelve of section thirty-three hundred sixty of the public health law] SECTION THREE OF THE CANNABIS LAW, who issues a certification with knowledge of reasonable grounds to know that (i) the recipient has no medical need for it, or (ii) it is for a purpose other than to treat a serious condition as defined in [subdivision seven of section thirty-three hundred sixty of the public health law] SECTION THREE OF THE CANNABIS LAW. Criminal diversion of medical [marihuana] CANNABIS in the first degree is a class E felony. § 179.11 Criminal diversion of medical [marihuana] CANNABIS in the second degree. A person is guilty of criminal diversion of medical [marihuana] CANNA- BIS in the second degree when he or she sells, trades, delivers, or otherwise provides medical [marihuana] CANNABIS to another with know- ledge or reasonable grounds to know that the recipient is not registered under [title five-A of article thirty-three of the public health law] ARTICLE THREE OF THE CANNABIS LAW. Criminal diversion of medical [marihuana] CANNABIS in the second degree is a class B misdemeanor. § 179.15 Criminal retention of medical [marihuana] CANNABIS. A person is guilty of criminal retention of medical [marihuana] CANNA- BIS when, being a certified patient or designated caregiver, as those terms are defined in [subdivisions three and five of section thirty- three hundred sixty of the public health law, respectively] SECTION THREE OF THE CANNABIS LAW, he or she knowingly obtains, possesses, stores or maintains an amount of [marihuana] CANNABIS in excess of the amount he or she is authorized to possess under the provisions of [title five-A of article thirty-three of the public health law] ARTICLE THREE OF THE CANNABIS LAW. Criminal retention of medical [marihuana] CANNABIS is a class A misde- meanor. § 56. Section 220.78 of the penal law, as added by chapter 154 of the laws of 2011, is amended to read as follows: § 220.78 Witness or victim of drug or alcohol overdose. 1. A person who, in good faith, seeks health care for someone who is experiencing a drug or alcohol overdose or other life threatening medical emergency shall not be charged or prosecuted for a controlled substance offense under article two hundred twenty or a [marihuana] CANNABIS offense under article two hundred twenty-one of this title, other than an offense involving sale for consideration or other benefit or gain, or charged or prosecuted for possession of alcohol by a person under age twenty-one years under section sixty-five-c of the alcoholic beverage control law, or for possession of drug paraphernalia under article thirty-nine of the general business law, with respect to any controlled substance, [marihuana] CANNABIS, alcohol or paraphernalia that was obtained as a result of such seeking or receiving of health care. 2. A person who is experiencing a drug or alcohol overdose or other life threatening medical emergency and, in good faith, seeks health care for himself or herself or is the subject of such a good faith request for health care, shall not be charged or prosecuted for a controlled substance offense under this article or a [marihuana] CANNABIS offense under article two hundred twenty-one of this title, other than an offense involving sale for consideration or other benefit or gain, or charged or prosecuted for possession of alcohol by a person under age twenty-one years under section sixty-five-c of the alcoholic beverage S. 1509--A 192 A. 2009--A control law, or for possession of drug paraphernalia under article thir- ty-nine of the general business law, with respect to any substance, [marihuana] CANNABIS, alcohol or paraphernalia that was obtained as a result of such seeking or receiving of health care. 3. Definitions. As used in this section the following terms shall have the following meanings: (a) "Drug or alcohol overdose" or "overdose" means an acute condition including, but not limited to, physical illness, coma, mania, hysteria or death, which is the result of consumption or use of a controlled substance or alcohol and relates to an adverse reaction to or the quan- tity of the controlled substance or alcohol or a substance with which the controlled substance or alcohol was combined; provided that a patient's condition shall be deemed to be a drug or alcohol overdose if a prudent layperson, possessing an average knowledge of medicine and health, could reasonably believe that the condition is in fact a drug or alcohol overdose and (except as to death) requires health care. (b) "Health care" means the professional services provided to a person experiencing a drug or alcohol overdose by a health care professional licensed, registered or certified under title eight of the education law or article thirty of the public health law who, acting within his or her lawful scope of practice, may provide diagnosis, treatment or emergency services for a person experiencing a drug or alcohol overdose. 4. It shall be an affirmative defense to a criminal sale controlled substance offense under this article or a criminal sale of [marihuana] CANNABIS offense under article two hundred twenty-one of this title, not covered by subdivision one or two of this section, with respect to any controlled substance or [marihuana] CANNABIS which was obtained as a result of such seeking or receiving of health care, that: (a) the defendant, in good faith, seeks health care for someone or for him or herself who is experiencing a drug or alcohol overdose or other life threatening medical emergency; and (b) the defendant has no prior conviction for the commission or attempted commission of a class A-I, A-II or B felony under this arti- cle. 5. Nothing in this section shall be construed to bar the admissibility of any evidence in connection with the investigation and prosecution of a crime with regard to another defendant who does not independently qualify for the bar to prosecution or for the affirmative defense; nor with regard to other crimes committed by a person who otherwise quali- fies under this section; nor shall anything in this section be construed to bar any seizure pursuant to law, including but not limited to pursu- ant to section thirty-three hundred eighty-seven of the public health law. 6. The bar to prosecution described in subdivisions one and two of this section shall not apply to the prosecution of a class A-I felony under this article, and the affirmative defense described in subdivision four of this section shall not apply to the prosecution of a class A-I or A-II felony under this article. § 57. Subdivision 1 of section 260.20 of the penal law, as amended by chapter 362 of the laws of 1992, is amended as follows: 1. He knowingly permits a child less than eighteen years old to enter or remain in or upon a place, premises or establishment where sexual activity as defined by article one hundred thirty, two hundred thirty or two hundred sixty-three of this [chapter] PART or activity involving controlled substances as defined by article two hundred twenty of this [chapter or involving marihuana as defined by article two hundred twen- S. 1509--A 193 A. 2009--A ty-one of this chapter] PART is maintained or conducted, and he knows or has reason to know that such activity is being maintained or conducted; or § 58. Section 89-h of the state finance law, as added by chapter 90 of the laws of 2014, is amended to read as follows: § 89-h. Medical [marihuana] CANNABIS trust 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 "medical [marihuana] CANNABIS trust fund." 2. The medical [marihuana] CANNABIS trust fund shall consist of all moneys required to be deposited in the medical [marihuana] CANNABIS trust fund pursuant to the provisions of section four hundred ninety of the tax law. 3. The moneys in the medical [marihuana] CANNABIS trust fund shall be kept separate and shall not be commingled with any other moneys in the custody of the commissioner of taxation and finance and the state comp- troller. 4. The moneys of the medical [marihuana] CANNABIS trust fund, follow- ing appropriation by the legislature, shall be allocated upon a certif- icate of approval of availability by the director of the budget as follows: (a) Twenty-two and five-tenths percent of the monies shall be transferred to the counties in New York state in which the medical [marihuana] CANNABIS was manufactured and allocated in proportion to the gross sales originating from medical [marihuana] CANNABIS manufactured in each such county; (b) twenty-two and five-tenths percent of the moneys shall be transferred to the counties in New York state in which the medical [marihuana] CANNABIS was dispensed and allocated in propor- tion to the gross sales occurring in each such county; (c) five percent of the monies shall be transferred to the office of alcoholism and substance abuse services, which shall use that revenue for additional drug abuse prevention, counseling and treatment services; and (d) five percent of the revenue received by the department shall be transferred to the division of criminal justice services, which shall use that revenue for a program of discretionary grants to state and local law enforcement agencies that demonstrate a need relating to [title five-A of article thirty-three of the public health law] ARTICLE THREE OF THE CANNABIS LAW; said grants could be used for personnel costs of state and local law enforcement agencies. For purposes of this subdivision, the city of New York shall be deemed to be a county. § 59. Intentionally omitted. § 60. The state finance law is amended by adding a new section 99-ff to read as follows: § 99-FF. NEW YORK STATE CANNABIS REVENUE 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 STATE CANNABIS REVENUE FUND" (THE "FUND"). 2. MONIES IN THE FUND SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE CUSTODY OF THE COMPTROLLER OR THE COMMISSIONER OF TAXATION AND FINANCE. PROVIDED, HOWEVER THAT ANY MONIES 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, MONIES FROM THE FUND SHALL NOT BE USED TO MAKE PAYMENTS FOR ANY PURPOSE S. 1509--A 194 A. 2009--A OTHER THAN THE PURPOSES SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS SECTION. 4. THE "NEW YORK STATE CANNABIS REVENUE FUND" SHALL CONSIST OF MONIES RECEIVED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDI- VISIONS (A) AND (B) OF SECTION FOUR HUNDRED NINETY-THREE OF THE TAX LAW AND ALL OTHER MONIES CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE. MONIES OF SUCH FUND SHALL BE EXPENDED FOR THE FOLLOWING PURPOSES: ADMINISTRATION OF THE REGULATED CANNABIS PROGRAM, DATA GATHER- ING, MONITORING AND REPORTING, THE GOVERNOR'S TRAFFIC SAFETY COMMITTEE, SMALL BUSINESS DEVELOPMENT AND LOANS, SUBSTANCE ABUSE, HARM REDUCTION AND MENTAL HEALTH TREATMENT AND PREVENTION, PUBLIC HEALTH EDUCATION AND INTERVENTION, RESEARCH ON CANNABIS USES AND APPLICATIONS, PROGRAM EVALU- ATION AND IMPROVEMENTS, AND ANY OTHER IDENTIFIED PURPOSE RECOMMENDED BY THE EXECUTIVE DIRECTOR OF THE OFFICE OF CANNABIS MANAGEMENT AND APPROVED BY THE DIRECTOR OF THE BUDGET. § 61. Subdivision 2 of section 3371 of the public health law, as amended by chapter 90 of the laws of 2014, is amended to read as follows: 2. The prescription monitoring program registry may be accessed, under such terms and conditions as are established by the department for purposes of maintaining the security and confidentiality of the informa- tion contained in the registry, by: (a) a practitioner, or a designee authorized by such practitioner pursuant to paragraph (b) of subdivision two of section thirty-three hundred forty-three-a or section thirty-three hundred sixty-one of this article, for the purposes of: (i) informing the practitioner that a patient may be under treatment with a controlled substance by another practitioner; (ii) providing the practitioner with notifications of controlled substance activity as deemed relevant by the department, including but not limited to a notification made available on a monthly or other periodic basis through the registry of controlled substances activity pertaining to his or her patient; (iii) allowing the practi- tioner, through consultation of the prescription monitoring program registry, to review his or her patient's controlled substances history as required by section thirty-three hundred forty-three-a [or section thirty-three hundred sixty-one] of this article; and (iv) providing to his or her patient, or person authorized pursuant to paragraph (j) of subdivision one of this section, upon request, a copy of such patient's controlled substance history as is available to the practitioner through the prescription monitoring program registry; or (b) a pharmacist, pharmacy intern or other designee authorized by the pharmacist pursuant to paragraph (b) of subdivision three of section thirty-three hundred forty-three-a of this article, for the purposes of: (i) consulting the prescription monitoring program registry to review the controlled substances history of an individual for whom one or more prescriptions for controlled substances or certifications for marihuana is presented to the pharmacist, pursuant to section thirty-three hundred forty-three-a of this article; and (ii) receiving from the department such notifications of controlled substance activity as are made avail- able by the department; or (c) an individual employed by a registered organization for the purpose of consulting the prescription monitoring program registry to review the controlled substances history of an individual for whom one or more certifications for [marihuana] CANNABIS is presented to that registered organization[, pursuant to section thirty-three hundred sixty-four of this article]. Unless otherwise authorized by this arti- S. 1509--A 195 A. 2009--A cle, an individual employed by a registered organization will be provided access to the prescription monitoring program in the sole discretion of the commissioner. § 62. Subdivision 3 of section 853 of the general business law, as added by chapter 90 of the laws of 2014, is amended to read as follows: 3. This article shall not apply to any sale, furnishing or possession which is for a lawful purpose under [title five-A of article thirty- three of the public health law] THE CANNABIS LAW. § 63. Subdivision 5 of section 410.91 of the criminal procedure law, as amended by chapter 90 of the laws of 2014, is amended to read as follows: 5. For the purposes of this section, a "specified offense" is an offense defined by any of the following provisions of the penal law: burglary in the third degree as defined in section 140.20, criminal mischief in the third degree as defined in section 145.05, criminal mischief in the second degree as defined in section 145.10, grand larce- ny in the fourth degree as defined in subdivision one, two, three, four, five, six, eight, nine or ten of section 155.30, grand larceny in the third degree as defined in section 155.35 (except where the property consists of one or more firearms, rifles or shotguns), unauthorized use of a vehicle in the second degree as defined in section 165.06, criminal possession of stolen property in the fourth degree as defined in subdi- vision one, two, three, five or six of section 165.45, criminal possession of stolen property in the third degree as defined in section 165.50 (except where the property consists of one or more firearms, rifles or shotguns), forgery in the second degree as defined in section 170.10, criminal possession of a forged instrument in the second degree as defined in section 170.25, unlawfully using slugs in the first degree as defined in section 170.60, criminal diversion of medical [marihuana] CANNABIS in the first degree as defined in section 179.10 or an attempt to commit any of the aforementioned offenses if such attempt constitutes a felony offense; or a class B felony offense defined in article two hundred twenty where a sentence is imposed pursuant to paragraph (a) of subdivision two of section 70.70 of the penal law; or any class C, class D or class E controlled substance [or marihuana] CANNABIS felony offense as defined in article two hundred twenty or two hundred twenty-one. § 63-a. Subdivision 5 of section 410.91 of the criminal procedure law, as amended by section 8 of part AAA of chapter 56 of the laws of 2009, is amended to read as follows: 5. For the purposes of this section, a "specified offense" is an offense defined by any of the following provisions of the penal law: burglary in the third degree as defined in section 140.20, criminal mischief in the third degree as defined in section 145.05, criminal mischief in the second degree as defined in section 145.10, grand larce- ny in the fourth degree as defined in subdivision one, two, three, four, five, six, eight, nine or ten of section 155.30, grand larceny in the third degree as defined in section 155.35 (except where the property consists of one or more firearms, rifles or shotguns), unauthorized use of a vehicle in the second degree as defined in section 165.06, criminal possession of stolen property in the fourth degree as defined in subdi- vision one, two, three, five or six of section 165.45, criminal possession of stolen property in the third degree as defined in section 165.50 (except where the property consists of one or more firearms, rifles or shotguns), forgery in the second degree as defined in section 170.10, criminal possession of a forged instrument in the second degree as defined in section 170.25, unlawfully using slugs in the first degree S. 1509--A 196 A. 2009--A as defined in section 170.60, or an attempt to commit any of the afore- mentioned offenses if such attempt constitutes a felony offense; or a class B felony offense defined in article two hundred twenty where a sentence is imposed pursuant to paragraph (a) of subdivision two of section 70.70 of the penal law; or any class C, class D or class E controlled substance or [marihuana] CANNABIS felony offense as defined in article two hundred twenty or two hundred twenty-one. § 63-b. The criminal procedure law is amended by adding a new section 440.46-a to read as follows: § 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARI- HUANA OFFENSES. 1. A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER BY TRIAL OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN GUILTY OF AN OFFENSE OR WHO WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT THE TIME OF HIS OR HER CONVICTION MAY PETITION FOR A RECALL OR DISMISSAL OF SENTENCE BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT OF CONVICTION IN HIS OR HER CASE TO REQUEST RESEN- TENCING OR DISMISSAL IN ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW. 2. UPON RECEIVING A MOTION UNDER SUBDIVISION ONE OF THIS SECTION THE COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE OF THIS SECTION UNLESS THE PARTY OPPOSING THE MOTION PROVES BY CLEAR AND CONVINCING EVIDENCE THAT THE MOVANT DOES NOT SATISFY THE CRITERIA. IF THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE OF THIS SECTION, THE COURT SHALL GRANT THE MOTION TO VACATE THE SENTENCE OR TO RESENTENCE BECAUSE IT IS LEGALLY INVALID. IN EXERCISING ITS DISCRETION, THE COURT MAY CONSIDER, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING: A) THE MOVANT'S CRIMINAL CONVICTION HISTORY, INCLUDING THE TYPE OF CRIMES COMMITTED, THE EXTENT OF INJURY TO VICTIMS, THE LENGTH OF PRIOR PRISON COMMITMENTS, AND THE REMOTENESS OF THE CRIMES. (B) THE MOVANT'S DISCIPLINARY RECORD AND RECORD OF REHABILITATION WHILE INCAR- CERATED. 3. A PERSON WHO IS SERVING A SENTENCE AND RESENTENCED PURSUANT TO SUBDIVISION TWO OF THIS SECTION SHALL BE GIVEN CREDIT FOR ANY TIME ALREADY SERVED AND SHALL BE SUBJECT TO SUPERVISION FOR ONE YEAR FOLLOW- ING COMPLETION OF HIS OR HER TIME IN CUSTODY OR SHALL BE SUBJECT TO WHATEVER SUPERVISION TIME HE OR SHE WOULD HAVE OTHERWISE BEEN SUBJECT TO AFTER RELEASE, WHICHEVER IS SHORTER, UNLESS THE COURT, IN ITS DISCRETION, AS PART OF ITS RESENTENCING ORDER, RELEASES THE PERSON FROM SUPERVISION. SUCH PERSON IS SUBJECT TO PAROLE SUPERVISION UNDER SECTION 60.04 OF THE PENAL LAW OR POST-RELEASE SUPERVISION UNDER SECTION 70.45 OF THE PENAL LAW BY THE DESIGNATED AGENCY AND THE JURISDICTION OF THE COURT IN THE COUNTY IN WHICH THE OFFENDER IS RELEASED OR RESIDES, OR IN WHICH AN ALLEGED VIOLATION OF SUPERVISION HAS OCCURRED, FOR THE PURPOSE OF HEARING PETITIONS TO REVOKE SUPERVISION AND IMPOSE A TERM OF CUSTODY. 4. UNDER NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS SECTION RESULT IN THE IMPOSITION OF A TERM LONGER THAN THE ORIGINAL SENTENCE, OR THE REIN- STATEMENT OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA AGREEMENT. 5. A PERSON WHO HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETHER BY TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN GUILTY OF AN OFFENSE OR WHO WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN APPLICATION BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT OF CONVICTION IN HIS OR HER CASE TO HAVE THE CONVICTION, IN ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY- ONE OF THE PENAL LAW:(A) DISMISSED BECAUSE THE PRIOR CONVICTION IS NOW LEGALLY INVALID AND SEALED IN ACCORDANCE WITH SECTION 160.50 OF THIS S. 1509--A 197 A. 2009--A CHAPTER;(B) REDESIGNATED (OR "RECLASSIFIED") AS A VIOLATION AND SEALED IN ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER; OR(C) REDESIGNATED (RECLASSIFIED) AS A MISDEMEANOR. 6. THE COURT SHALL PRESUME THE PETI- TIONER SATISFIES THE CRITERIA IN SUBDIVISION FIVE UNLESS THE PARTY OPPOSING THE APPLICATION PROVES BY CLEAR AND CONVINCING EVIDENCE THAT THE PETITIONER DOES NOT SATISFY THE CRITERIA IN SUBDIVISION FIVE. ONCE THE APPLICANT SATISFIES THE CRITERIA IN SUBDIVISION FIVE, THE COURT SHALL REDESIGNATE (OR "RECLASSIFY") THE CONVICTION AS A MISDEMEANOR, REDESIGNATE (RECLASSIFY) THE CONVICTION AS A VIOLATION AND SEAL THE CONVICTION, OR DISMISS AND SEAL THE CONVICTION AS LEGALLY INVALID UNDER THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT THE TIME OF HIS OR HER CONVICTION. 7. UNLESS REQUESTED BY THE APPLICANT, NO HEARING IS NECES- SARY TO GRANT OR DENY AN APPLICATION FILED UNDER SUBDIVISION FIVE OF THIS SECTION. 8. ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER SUBDIVISION TWO OR DESIGNATED AS A MISDEMEANOR OR VIOLATION UNDER SUBDIVISION SIX OF THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR OR VIOLATION FOR ALL PURPOSES. ANY MISDEMEANOR CONVICTION THAT IS VACATED AND RESENTENCED UNDER SUBDIVISION TWO OF THIS SECTION OR DESIGNATED AS A VIOLATION UNDER SUBDIVISION SIX OF THIS SECTION SHALL BE CONSIDERED A VIOLATION FOR ALL PURPOSES. 9. IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAILABLE, THE PRESIDING JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE ON THE PETITION OR APPLICATION. 10. NOTHING IN THIS SECTION IS INTENDED TO DIMINISH OR ABROGATE ANY RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT. 11. NOTHING IN THIS AND RELATED SECTIONS IS INTENDED TO DIMINISH OR ABROGATE THE FINALITY OF JUDGEMENTS IN ANY CASE NOT FALLING WITHIN THE PURVIEW OF THIS SECTION. 12. THE PROVISIONS OF THIS SECTION SHALL APPLY EQUALLY TO JUVENILE DELINQUENCY ADJUDICATIONS AND DISPOSITIONS UNDER SECTION FIVE HUNDRED ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF AN OFFENSE OR WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE UNDER THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT THE TIME OF HIS OR HER CONVICTION. 13. THE OFFICE OF COURT ADMINISTRATION SHALL PROMULGATE AND MAKE AVAILABLE ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS AND APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING THE EFFECTIVE DATE OF THIS SECTION. § 64. This act shall take effect immediately; provided, however that sections thirty-seven and thirty-eight of this act shall take effect on April 1, 2020, and shall apply on and after such date: (a) to the culti- vation of cannabis flower and cannabis trim transferred by a cultivator who is not a wholesaler; (b) to the cultivation of cannabis flower and cannabis trim sold or transferred to a retail dispensary by a cultivator who is a wholesaler; and (c) to the sale or transfer of adult use canna- bis products to a retail dispensary; provided, further, that the amend- ments to article 179 of the penal law made by section fifty-five of this act shall not affect the repeal of such article and shall be deemed to be repealed therewith; provided further, that the amendments to section 89-h of the state finance law made by section fifty-eight of this act shall not affect the repeal of such section and shall be deemed repealed therewith; provided further, that the amendments to section 221.00 of the penal law made by section fifteen of this act shall be subject to the expiration of such section when upon such date the provisions of section fifteen-a of this act shall take effect; provided, however, that the amendments to subdivision 2 of section 3371 of the public health law made by section sixty-one of this act shall not affect the expiration of such subdivision and shall be deemed to expire therewith; provided further, that the amendments to subdivision 3 of section 853 of the S. 1509--A 198 A. 2009--A general business law made by section sixty-two of this act shall not affect the repeal of such subdivision and shall be deemed to be repealed therewith; and provided further, that the amendments to subdivision 5 of section 410.91 of the penal law made by section sixty-three of this act shall be subject to the expiration and reversion of such subdivision when upon such date the provisions of section sixty-three-a of this act shall take effect. PART WW Section 1. Section 1166-a of the tax law, as added by section 1 of part F of chapter 25 of the laws of 2009, is amended to read as follows: § 1166-a. Special supplemental tax on passenger car rentals WITHIN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (a) In addition to the tax imposed under section eleven hundred sixty of this article and in addition to any tax imposed under any other article of this chapter, there is hereby imposed and there shall be paid a tax at the rate of five percent upon the receipts from every rental of a passenger car which is a retail sale of such passenger car within the metropolitan commuter transportation district as defined in [subdivision] SUBSECTION (a) of section eight hundred of this chapter. (b) Except to the extent that a passenger car rental described in subdivision (a) of this section, OR SECTION ELEVEN HUNDRED SIXTY-SIX-B OF THIS ARTICLE, has already been or will be subject to the tax imposed under such subdivision OR SECTION and except as otherwise exempted under this article, there is hereby imposed on every person and there shall be paid a use tax for the use within the metropolitan commuter transporta- tion district as defined in [subdivision] SUBSECTION (a) of section eight hundred of this chapter; of any passenger car rented by the user [which] THAT is a purchase at retail of such passenger car, but not including any lease of a passenger car to which subdivision (i) of section eleven hundred eleven of this chapter applies. For purposes of this [paragraph] SUBDIVISION, the tax shall be at the rate of five percent of the consideration given or contracted to be given for such property, or for the use of such property, including any charges for shipping or delivery as described in paragraph three of subdivision (b) of section eleven hundred one of this chapter, but excluding any credit for tangible personal property accepted in part payment and intended for resale. § 2. The tax law is amended by adding a new section 1166-b to read as follows: § 1166-B. SPECIAL SUPPLEMENTAL TAX ON PASSENGER CAR RENTALS OUTSIDE OF THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (A) IN ADDITION TO THE TAX IMPOSED UNDER SECTION ELEVEN HUNDRED SIXTY OF THIS ARTICLE AND IN ADDITION TO ANY TAX IMPOSED UNDER ANY OTHER ARTICLE OF THIS CHAPTER, THERE IS HEREBY IMPOSED AND THERE SHALL BE PAID A TAX AT THE RATE OF FIVE PERCENT UPON THE RECEIPTS FROM EVERY RENTAL OF A PASSENGER CAR THAT IS NOT SUBJECT TO THE TAX DESCRIBED IN SECTION ELEVEN HUNDRED SIXTY-SIX-A OF THIS ARTICLE, BUT WHICH IS A RETAIL SALE OF SUCH PASSEN- GER CAR WITHIN THE STATE. (B) EXCEPT TO THE EXTENT THAT A PASSENGER CAR RENTAL DESCRIBED IN SUBDIVISION (A) OF THIS SECTION OR IN SECTION ELEVEN HUNDRED SIXTY-SIX-A OF THIS ARTICLE, HAS ALREADY BEEN SUBJECT TO THE TAX IMPOSED UNDER SUCH SUBDIVISION OR SECTION, AND EXCEPT AS OTHERWISE EXEMPTED UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED ON EVERY PERSON AND THERE SHALL BE PAID A USE TAX FOR THE USE WITHIN THE STATE OF ANY PASSENGER S. 1509--A 199 A. 2009--A CAR RENTED BY THE USER THAT IS A PURCHASE AT RETAIL OF SUCH PASSENGER CAR, BUT NOT INCLUDING ANY LEASE OF A PASSENGER CAR TO WHICH SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS CHAPTER APPLIES. FOR PURPOSES OF THIS SUBDIVISION, THE TAX SHALL BE AT THE RATE OF FIVE PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH PROPERTY, OR FOR THE USE OF SUCH PROPERTY, INCLUDING ANY CHARGES FOR SHIPPING OR DELIVERY AS DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, BUT EXCLUDING ANY CREDIT FOR TANGIBLE PERSONAL PROPERTY ACCEPTED IN PART PAYMENT AND INTENDED FOR RESALE. § 3. Section 1167 of the tax law, as amended by section 3 of part F of chapter 25 of the laws of 2009, is amended to read as follows: § 1167. Deposit and disposition of revenue. All taxes, interest and penalties 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, except that after reserving amounts in accordance with such section one hundred seventy-one-a of this chapter, the remainder shall be paid by the comptroller to the credit of the highway and bridge trust fund established by section eighty-nine-b of the state finance law, provided, however[,]: (A) taxes, interest and penalties collected or received pursuant to section eleven hundred sixty-six-a of this article shall be paid to the credit of the metropolitan transportation authority aid trust account of the metropol- itan transportation authority financial assistance fund established by section ninety-two-ff of the state finance law; AND (B) TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED PURSUANT TO SECTION ELEVEN HUNDRED SIXTY-SIX-B OF THIS ARTICLE SHALL BE PAID TO THE CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT ESTABLISHED BY SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW. § 4. This act shall take effect September 1, 2019, and shall apply to rentals of passenger cars commencing on and after such date whether or not under a prior contract; provided, however where such passenger car rentals are billed on a monthly, quarterly or other period basis, the tax imposed by this act shall apply to the rental for such period if more than half of the days included in such period are days subsequent to such effective date. PART XX Section 1. The tax law is amended by adding a new article 20-D to read as follows: ARTICLE 20-D EXCISE TAX ON SALE OF OPIOIDS SECTION 497. DEFINITIONS. 498. IMPOSITION OF EXCISE TAX. 499. RETURNS TO BE SECRET. § 497. DEFINITIONS. THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN- INGS WHEN USED IN THIS ARTICLE. (A) "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-V OF SECTION THIRTY-THREE HUNDRED SIX OF S. 1509--A 200 A. 2009--A THE PUBLIC HEALTH LAW. THE TERM "OPIOID" SHALL NOT MEAN BUPRENORPHINE, METHADONE, OR MORPHINE. (B) "UNIT" SHALL MEAN A SINGLE FINISHED DOSAGE FORM OF AN OPIOID, SUCH AS A PILL, TABLET, CAPSULE, SUPPOSITORY, TRANSDERMAL PATCH, BUCCAL FILM, MILLILITER OF LIQUID, MILLIGRAM OF TOPICAL PREPARATION, OR ANY OTHER FORM. (C) "STRENGTH PER UNIT" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT, AS MEASURED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC. (D) "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. (E) "MORPHINE MILLIGRAM EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY ITS STRENGTH PER UNIT MULTIPLIED BY THE MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR. (F) "REGISTRANT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSOCI- ATION REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT AS A WHOLESALER, MANUFACTURER, OR OUTSOURCING FACILITY 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 EDUCATION DEPARTMENT AS A WHOLESALER, MANUFACTURER, OR OUTSOURCING FACILITY PURSUANT TO SUCH SECTION SIXTY-EIGHT HUNDRED EIGHT-B BUT FOR THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION; AND ANY PERSON, FIRM, CORPORATION OR ASSOCIATION REQUIRED TO BE REGISTERED WITH THE HEALTH DEPARTMENT AS A MANUFACTURER OR DISTRIBUTOR OF A CONTROLLED SUBSTANCE PURSUANT TO SECTION THIRTY- THREE HUNDRED TEN OF THE PUBLIC HEALTH LAW. (G) "WHOLESALE ACQUISITION COST" SHALL MEAN THE MANUFACTURER'S LIST PRICE FOR AN OPIOID UNIT TO WHOLESALERS OR DIRECT PURCHASERS IN THE UNITED STATES, NOT INCLUDING PROMPT PAY OR OTHER DISCOUNTS, REBATES OR REDUCTIONS IN PRICE, FOR THE MOST RECENT MONTH FOR WHICH THE INFORMATION IS AVAILABLE, AS REPORTED IN WHOLESALE PRICE GUIDES OR OTHER PUBLICA- TIONS OF DRUG OR BIOLOGICAL PRICING DATA. (H) "SALE" SHALL MEAN ANY TRANSFER OF TITLE TO AN OPIOID FOR A CONSID- ERATION WHERE ACTUAL OR CONSTRUCTIVE POSSESSION OF SUCH OPIOID IS TRANS- FERRED TO THE PURCHASER OR ITS DESIGNEE IN THIS STATE. A SALE SHALL NOT INCLUDE THE DISPENSING OF AN OPIOID PURSUANT TO A PRESCRIPTION TO AN ULTIMATE CONSUMER. § 498. IMPOSITION OF EXCISE TAX. (A) THERE IS HEREBY IMPOSED AN EXCISE TAX ON THE FIRST SALE OF ANY OPIOID IN THE STATE AT THE FOLLOWING RATES: (1) A QUARTER OF A CENT PER MORPHINE MILLIGRAM EQUIVALENT WHERE THE WHOLESALE ACQUISITION COST IS LESS THAN FIFTY CENTS, OR (2) ONE AND ONE-HALF CENTS PER MORPHINE MILLIGRAM EQUIVALENT WHERE THE WHOLESALE ACQUISITION COST IS FIFTY CENTS OR MORE. THE TAX IMPOSED BY THIS ARTICLE SHALL BE CHARGED AGAINST AND PAID BY THE REGISTRANT MAKING SUCH FIRST SALE, AND SHALL ACCRUE AT THE TIME OF SUCH SALE. THE ECONOMIC INCIDENCE OF THE TAX IMPOSED BY THIS ARTICLE MAY BE PASSED TO A PURCHASER. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO PREVENT EVASION OF THE TAX HEREBY IMPOSED, IT SHALL BE PRESUMED THAT ANY SALE OF AN OPIOID IN THIS STATE BY A REGISTRANT IS THE FIRST SALE OF SUCH IN THE STATE UNTIL THE CONTRARY IS ESTABLISHED, AND THE BURDEN OF PROVING THAT ANY SALE IS NOT THE FIRST SALE IN THE STATE SHALL BE UPON THE REGIS- TRANT. (B) EVERY REGISTRANT LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE SHALL FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER SHOWING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT AND WHOLE- SALE ACQUISITION COSTS OF SUCH OPIOIDS THAT ARE SUBJECT TO THE TAX S. 1509--A 201 A. 2009--A IMPOSED BY THIS ARTICLE, THE AMOUNT OF TAX DUE THEREON, AND SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE FILED FOR QUARTERLY PERIODS ENDING ON THE LAST DAY OF MARCH, JUNE, SEPTEMBER AND DECEMBER OF EACH YEAR. EACH RETURN SHALL BE FILED WITHIN TWENTY DAYS AFTER THE END OF SUCH QUARTERLY PERIOD AND SHALL COVER ALL OPIOID SALES IN THE STATE MADE IN THE PRIOR QUARTER, EXCEPT THAT THE FIRST RETURN REQUIRED TO BE FILED PURSUANT TO THIS SECTION SHALL BE DUE ON JANUARY TWENTIETH, TWO THOUSAND TWENTY, 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 NINETEEN. EVERY REGISTRANT REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF TAX DUE FOR THE PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED WHEN DUE, THE TAX SHALL BE DUE THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED. THE COMMISSIONER MAY REQUIRE THAT THE RETURNS AND PAYMENTS REQUIRED BY THIS SECTION BE FILED OR PAID ELECTRONICALLY. (C) WHERE A SALE OF AN OPIOID BY A REGISTRANT HAS BEEN CANCELLED BY THE PURCHASER AND TAX UNDER THIS ARTICLE HAS PREVIOUSLY BEEN PAID BY THE REGISTRANT, THE COMMISSIONER SHALL ALLOW A CREDIT OR REFUND OF SUCH TAX ON A RETURN FOR A LATER PERIOD WITHIN THE LIMITATIONS PERIOD FOR CLAIM- ING A CREDIT OR REFUND AS PRESCRIBED BY SECTION ONE THOUSAND EIGHTY-SEV- EN OF THIS CHAPTER. (D) ALL SALES SLIPS, INVOICES, RECEIPTS, OR OTHER STATEMENTS OR MEMO- RANDA OF SALE FROM ANY SALE OR PURCHASE OF OPIOIDS BY REGISTRANTS MUST BE RETAINED FOR A PERIOD OF SIX YEARS AFTER THE DUE DATE OF THE RETURN TO WHICH THEY RELATE, UNLESS THE COMMISSIONER PROVIDES FOR A DIFFERENT RETENTION PERIOD BY RULE OR REGULATION. SUCH RECORDS MUST BE SUFFICIENT TO DETERMINE THE NUMBER OF UNITS TRANSFERRED ALONG WITH THE MORPHINE MILLIGRAM EQUIVALENT OF THE UNITS TRANSFERRED, AND OTHERWISE BE SUITABLE TO DETERMINE THE CORRECT AMOUNT OF TAX DUE. SUCH RECORDS MUST ALSO RECORD EITHER (1) THE ADDRESS FROM WHICH THE UNITS ARE SHIPPED OR DELIV- ERED, ALONG WITH THE ADDRESS TO WHICH THE UNITS ARE SHIPPED OR DELIV- ERED, OR (2) THE PLACE AT WHICH ACTUAL PHYSICAL POSSESSION OF THE UNITS IS TRANSFERRED. SUCH RECORDS SHALL BE PRODUCED UPON DEMAND BY THE COMMISSIONER. (E) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCORPO- RATED IN FULL INTO THIS ARTICLE AND HAD EXPRESSLY REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH ARTICLE TWENTY-SEVEN IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. (F) THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH THE COMMISSIONER IN ADMINISTERING THIS TAX, INCLUDING SHARING WITH THE COMMISSIONER PERTINENT INFORMATION ABOUT REGISTRANTS UPON THE REQUEST OF THE COMMISSIONER. (G) EACH REGISTRANT SHALL PROVIDE A REPORT TO THE DEPARTMENT OF HEALTH DETAILING ALL OPIOIDS SOLD BY SUCH REGISTRANT IN THE STATE OF NEW YORK. SUCH REPORT SHALL INCLUDE: (I) THE REGISTRANT'S NAME, ADDRESS, PHONE NUMBER, FEDERAL DRUG ENFORCEMENT AGENCY (DEA) REGISTRATION NUMBER, EDUCATION DEPARTMENT REGISTRATION NUMBER, AND CONTROLLED SUBSTANCE LICENSE NUMBER ISSUED BY THE DEPARTMENT OF HEALTH, IF APPLICABLE; (II) THE NAME, ADDRESS AND DEA REGISTRATION NUMBER OF THE ENTITY TO WHOM THE OPIOID WAS SOLD; (III) THE DATE OF THE SALE OF THE OPIOID; S. 1509--A 202 A. 2009--A (IV) THE GROSS RECEIPT TOTAL, IN DOLLARS, FOR EACH OPIOID SOLD; (V) THE NAME AND NATIONAL DRUG CODE OF THE OPIOID SOLD; (VI) THE NUMBER OF CONTAINERS AND THE STRENGTH AND METRIC QUANTITY OF CONTROLLED SUBSTANCE IN EACH CONTAINER OF THE OPIOID SOLD; (VII) THE TOTAL NUMBER OF MORPHINE MILLIGRAM EQUIVALENTS SOLD; AND (VIII) ANY OTHER ELEMENTS AS DEEMED NECESSARY BY THE COMMISSIONER OF HEALTH. SUCH INFORMATION SHALL BE REPORTED ANNUALLY IN SUCH FORM AS DEFINED BY THE COMMISSIONER OF HEALTH AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF SECTION FOUR HUNDRED NINETY-NINE OF THIS ARTICLE. § 499. RETURNS TO BE SECRET. (A) EXCEPT IN ACCORDANCE WITH A PROPER JUDICIAL ORDER OR AS OTHERWISE PROVIDED FOR BY LAW, IT SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT, OR ANY PERSON ENGAGED OR RETAINED BY SUCH DEPARTMENT ON AN INDEPENDENT CONTRACT BASIS OR ANY OTHER 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 A REGISTRANT 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 COMMIS- SIONER 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 THERE- BY 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 DELIV- ERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTI- CLE, OR THE PROVISION OF ANY INFORMATION CONTAINED THEREIN, 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 CHAP- TER 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 INSPECTION OF THE RETURNS OR REPORTS REQUIRED UNDER THIS ARTICLE BY THE COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE DEPART- MENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF ANY TAX PAID BY A REGISTRANT OR OTHER PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO A REGISTRANT, OR A DULY AUTHORIZED REPRESEN- TATIVE OF SUCH REGISTRANT, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH REGISTRANT PURSUANT TO THIS ARTICLE, NOR TO PROHIBIT THE S. 1509--A 203 A. 2009--A PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THEREOF. (B)(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 IN THIS STATE FOR A PERIOD OF FIVE YEARS THEREAFTER. (2) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 2. Section 1825 of the tax law, as amended by section 3 of part NNN of chapter 59 of the laws of 2018, is amended to read as follows: § 1825. Violation of secrecy provisions of the tax law.--Any person who violates the SECRECY provisions of [subdivision (b) of section twen- ty-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-sev- en, subsection (a) of section nine hundred ninety-four, subdivision (a) of section eleven hundred forty-six, section twelve hundred eighty-sev- en, section twelve hundred ninety-six, section twelve hundred ninety- nine-F, subdivision (a) of section fourteen hundred eighteen, subdivi- sion (a) of section fifteen hundred eighteen, subdivision (a) of section fifteen hundred fifty-five of] this chapter[, and] OR subdivision (e) of section 11-1797 of the administrative code of the city of New York shall be guilty of a misdemeanor. § 3. Subdivision 1 of section 171-a of the tax law, as amended by section 3 of part MM of chapter 59 of the laws of 2018, 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-D, 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 comp- troller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such articles of this chapter out of which amount the comptroller shall pay any refunds or reimbursements to which taxpayers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. S. 1509--A 204 A. 2009--A The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursu- ant to subdivision five of section one hundred seventy-one-d and subdi- vision six of section one hundred seventy-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall cred- it to the special offset fiduciary account, pursuant to section ninety- one-c of the state finance law, any such amount creditable as a liabil- ity as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commissioner as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by article twenty-two of this chap- ter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- ty-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corporation, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally S. 1509--A 205 A. 2009--A 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 4 of part MM of chapter 59 of the laws of 2018, 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-D, 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 S. 1509--A 206 A. 2009--A of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 5. This act shall take effect July 1, 2019; 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 XX of this act shall be as specifically set forth in the last section of such Parts.
2019-A2009B - Details
- See Senate Version of this Bill:
- S1509
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2019-A2009B - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2019-2020 state fiscal year; relates to the effectiveness of provisions relating to mandatory electronic filing of tax documents (Part A); relates to amending the employee training incentive program (Part B); relates to including in the apportionment fraction receipts constituting net global intangible low-taxed income (Part C)
2019-A2009B - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 2009--B I N A S S E M B L Y January 18, 2019 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommit- ted to said committee AN ACT to amend part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, in relation to making perma- nent provisions relating to mandatory electronic filing of tax docu- ments; and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto (Part A); to amend the economic development law, in relation to the employee training incentive program (Part B); to amend the tax law and the administrative code of the city of New York, in relation to including in the apportionment fraction receipts constituting net global intan- gible low-taxed income (Part C); to amend the tax law and the adminis- trative code of the city of New York, in relation to the adjusted basis for property used to determine whether a manufacturer is a qual- ified New York manufacturer (Part D); to amend part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program, in relation to extending the effectiveness thereof (Part E); to amend the tax law, in relation to the inclusion in a decedent's New York gross estate any qualified terminable interest property for which a prior deduction was allowed and certain pre-death gifts (Part F); to amend the tax law, in relation to requiring marketplace providers to collect sales tax (Part G); to amend the tax law, in relation to eliminating the reduced tax rates under the sales and use tax with respect to certain gas and electric service; and to repeal certain provisions of the tax law and the administrative code of the city of New York related thereto (Part H); to amend the real property tax law, in relation to the determination and use of state equalization rates (Part I); intentionally omitted (Subpart A); to amend the real proper- ty tax law, in relation to authorizing agreements for assessment review services (Subpart B); to amend the real property tax law, in relation to the training of assessors and county directors of real
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12574-03-9 A. 2009--B 2 property tax services (Subpart C); to amend the real property tax law, in relation to providing certain notifications electronically (Subpart D); to amend the real property tax law, in relation to the valuation and taxable status dates of special franchise property (Subpart E); and to amend the real property tax law, in relation to the reporting requirements of power plants (Subpart F) (Part J); to repeal section 3-d of the general municipal law, relating to certification of compli- ance with tax levy limit (Part K); to amend the tax law, in relation to creating an employer-provided child care credit (Part L); to amend the tax law, in relation to including gambling winnings in New York source income and requiring withholding thereon (Part M); to amend the tax law, in relation to the farm workforce retention credit (Part N); to amend the tax law, in relation to updating tax preparer penalties; to amend part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related information and relating to the voluntary compliance initiative, in relation to elimi- nating the expiration thereof; and to repeal certain provisions of the tax law, relating to tax preparer penalties (Part O); to amend the tax law, in relation to extending the top personal income tax rate for five years (Part P); to amend the tax law and the administrative code of the city of New York, in relation to extending for five years the limitations on itemized deductions for individuals with incomes over one million dollars (Part Q); to amend the tax law, in relation to extending the clean heating fuel credit for three years (Part R); to amend part U of chapter 61 of the laws of 2011 amending the real prop- erty tax law and other laws relating to establishing standards for electronic tax administration, in relation to the effectiveness there- of (Part S); to amend the cooperative corporations law and the rural electric cooperative law, in relation to eliminating certain license fees (Part T); to amend the tax law, in relation to a credit for the rehabilitation of historic properties for state owned property leased to private entities (Part U); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part V); to amend the mental hygiene law and the tax law, in relation to the creation and administration of a tax credit for employment of eligible individuals in recovery from a substance use disorder (Part W); intentionally omitted (Part X); to amend the tax law, in relation to establishing a conditional tax on carried interest (Part Y); to amend the tax law and chapter 369 of the laws of 2018 amending the tax law relating to unrelated business taxable income of a taxpayer, in relation to making technical corrections thereto (Part Z); intentionally omitted (Part AA); intentionally omitted (Part BB); intentionally omitted (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to the office of the gaming inspector general; and to repeal title 9 of article 13 of the racing, pari-mutuel wagering and breeding law relating to the gaming inspector general (Subpart A); intentionally omitted (Subpart B); intentionally omitted (Subpart C); intentionally omitted (Subpart D)(Part DD); to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; and providing for the repeal of certain provisions upon expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to the deductibili- ty of promotional credits (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to the operations of off-track betting corporations (Part GG); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast A. 2009--B 3 facilities, sums relating to track simulcast, simulcast of out-of- state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breed- ing law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part HH); inten- tionally omitted (Part II); to amend part EE of chapter 59 of the laws of 2018, amending the racing, pari-mutuel wagering and breeding law relating to adjusting the franchise payment and establishing an advi- sory committee to review the structure, operations and funding of equine drug testing and research, in relation to the date of delivery for recommendations; and to amend the racing, pari-mutuel wagering and breeding law, in relation to equine lab testing provider restrictions removal (Part JJ); intentionally omitted (Part KK); intentionally omitted (Part LL); to amend the tax law, in relation to cooperative housing corporation information returns (Part MM); to amend the tax law, in relation to making a technical correction to the enhanced real property tax circuit breaker credit (Part NN); intentionally omitted (Part OO); intentionally omitted (Part PP); intentionally omitted (Part QQ); intentionally omitted (Part RR); to amend the real property tax law, in relation to clarifying certain notices on school tax bills (Part SS); to amend the real property tax law and the tax law, in relation to making the STAR program more accessible to taxpayers (Part TT); to amend the tax law, in relation to imposing a supplemental tax on vapor products; and to amend the state finance law, in relation to adding revenues from the supplemental tax on vapor products to the health care reform act resource fund (Part UU); intentionally omitted (Part VV); to amend the tax law, in relation to imposing a special tax on passenger car rentals outside of the metropolitan commuter trans- portation district (Part WW); intentionally omitted (Part XX); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York Jockey Injury Compensation Fund, Inc. (Part YY); to amend the tax law, in relation to the enforcement of delinquent tax liabilities by means of the suspension of licenses to operate a motor vehicle (Part ZZ); intentionally omitted (Part AAA); to amend the tax law, in relation to imposing an additional transfer tax on conveyances for consideration of five million dollars or more (Part BBB); to amend the real property tax law, in relation to imposing an additional tax on certain non-primary residence class one and class two properties in a city with a population of one million or more (Part CCC); to amend the tax law, in relation to authorizing the county of Westchester to impose an additional rate of sales and compensating use tax; and to amend chapter 272 of the laws of 1991, amending the tax law relating to the method of disposition of sales and compensating use tax revenue in Westchester county and enacting the Westchester county spending limitation act, in relation to extending the expiration thereof (Part DDD); and to amend the tax law, in relation to providing a tax credit for investments made in rural business growth funds; and to amend the state finance law, in relation to establishing the New York agricul- ture and rural jobs fund (Part EEE) A. 2009--B 4 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 2019-2020 state fiscal year. Each component is wholly contained within a Part identified as Parts A through EEE. 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 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. Paragraph 10 of subsection (g) of section 658 of the tax law is REPEALED. § 2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin- istrative code of the city of New York is REPEALED. § 3. Paragraph 5 of subsection (u) of section 685 of the tax law is REPEALED. § 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis- trative code of the city of New York is REPEALED. § 5. Section 23 of part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, as amended by section 5 of part G of chapter 60 of the laws of 2016, is amended to read as follows: § 23. This act shall take effect immediately; provided, however, that: (a) the amendments to section 29 of the tax law made by section thir- teen of this act shall apply to tax documents filed or required to be filed on or after the sixtieth day after which this act shall have become a law [and shall expire and be deemed repealed December 31, 2019], provided however that the amendments to paragraph 4 of subdivi- sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of section 29 of the tax law made by section thirteen of this act with regard to individual taxpayers shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eighty-five percent; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission of the date of the issuance of such report 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; (b) sections fourteen, fifteen, sixteen and seventeen of this act shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; AND (c) sections fourteen-a and fifteen-a of this act shall take effect September 15, 2011 and expire and be deemed repealed December 31, 2012 A. 2009--B 5 but shall take effect only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is eighty-five percent or greater[; (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this act shall take effect January 1, 2020 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eight- y-five percent; and (e) sections twenty-one and twenty-one-a of this act shall expire and be deemed repealed December 31, 2019]. § 6. This act shall take effect immediately. PART B Section 1. Subdivision 3 of section 441 of the economic development law, as amended by section 1 of part L of chapter 59 of the laws of 2017, is amended to read as follows: 3. "Eligible training" means (a) training provided by THE BUSINESS ENTITY OR an approved provider that is: (i) to upgrade, retrain or improve the productivity of employees; (ii) provided to employees in connection with a significant capital investment by a participating business entity; (iii) determined by the commissioner to satisfy a business need on the part of a participating business entity; (iv) not designed to train or upgrade skills as required by a federal or state entity; (v) not training the completion of which may result in the awarding of a license or certificate required by law in order to perform a job func- tion; and (vi) not culturally focused training; or (b) an internship program in advanced technology [or], life sciences, SOFTWARE DEVELOPMENT OR CLEAN ENERGY approved by the commissioner and provided by THE BUSINESS ENTITY OR an approved provider, on or after August first, two thousand fifteen, to provide employment and experience opportunities for current students, recent graduates, and recent members of the armed forces. § 2. Paragraph (b) of subdivision 1 of section 442 of the economic development law, as amended by section 2 of part L of chapter 59 of the laws of 2017, is amended to read as follows: (b) The business entity must demonstrate that it is CONDUCTING ELIGI- BLE TRAINING OR obtaining eligible training from an approved provider; § 3. Paragraph (a) of subdivision 2 of section 443 of the economic development law, as added by section 1 of part O of chapter 59 of the laws of 2015, is amended to read as follows: (a) provide such documentation as the commissioner may require in order for the commissioner to determine that the business entity intends to CONDUCT ELIGIBLE TRAINING OR procure eligible training for its employees from an approved provider; § 4. This act shall take effect immediately. PART C Section 1. Section 210-A of the tax law is amended by adding a new subdivision 5-a to read as follows: A. 2009--B 6 5-A. NET GLOBAL INTANGIBLE LOW-TAXED INCOME. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE APPORTIONMENT FRACTION AS PROVIDED IN THIS SUBDIVISION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRAC- TION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE APPORTIONMENT FRACTION. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE. § 2. Section 11-654.2 of the administrative code of the city of New York is amended by adding a new subdivision 5-a to read as follows: 5-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE RECEIPTS FRACTION AS PROVIDED IN THIS SUBDIVISION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW- TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC- TION. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE. § 3. Subparagraph (2) of paragraph (a) of subdivision (3) of section 11-604 of the administrative code of the city of New York is amended by adding a new clause (E) to read as follows: (E) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PARAGRAPH, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE RECEIPTS FRACTION AS PROVIDED IN THIS CLAUSE. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. FOR PURPOSES OF THIS CLAUSE, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT THAT WOULD HAVE BEEN REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION THAT WOULD HAVE BEEN ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE IF THE TAXPAYER HAD NOT MADE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER ONE OF THE INTERNAL REVENUE CODE. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART D Section 1. Subparagraph (vi) of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 11 of part T of chap- ter 59 of the laws of 2015, is amended to read as follows: (vi) for taxable years beginning on or after January first, two thou- sand fourteen, the amount prescribed by this paragraph for a taxpayer [which] THAT is a qualified New York manufacturer, shall be computed at the rate of zero percent of the taxpayer's business income base. The term "manufacturer" shall mean a taxpayer [which] THAT during the taxa- ble year is principally engaged in the production of goods by manufac- turing, processing, assembling, refining, mining, extracting, farming, A. 2009--B 7 agriculture, horticulture, floriculture, viticulture or commercial fish- ing. However, the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity shall not be qualifying activities for a manufacturer under this subparagraph. Moreover, in the case of a combined report, the combined group shall be considered a "manufacturer" for purposes of this subparagraph only if the combined group during the taxable year is principally engaged in the activities set forth in this paragraph, or any combination thereof. A taxpayer or, in the case of a combined report, a combined group shall be "principally engaged" in activities described above if, during the taxable year, more than fifty percent of the gross receipts of the taxpayer or combined group, respec- tively, are derived from receipts from the sale of goods produced by such activities. In computing a combined group's gross receipts, inter- corporate receipts shall be eliminated. A "qualified New York manufac- turer" is a manufacturer [which] THAT has property in New York [which] THAT is described in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of section two hundred ten-B of this article and either (I) the adjusted basis of such property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (II) all of its real and personal property is located in New York. A taxpayer or, in the case of a combined report, a combined group, that does not satisfy the principally engaged test may be a qual- ified New York manufacturer if the taxpayer or the combined group employs during the taxable year at least two thousand five hundred employees in manufacturing in New York and the taxpayer or the combined group has property in the state used in manufacturing, the adjusted basis of which for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one hundred million dollars. § 2. Subparagraph 2 of paragraph (b) of subdivision 1 of section 210 of the tax law, as amended by section 18 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (2) For purposes of subparagraph one of this paragraph, the term "manufacturer" shall mean a taxpayer [which] THAT during the taxable year is principally engaged in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agricul- ture, horticulture, floriculture, viticulture or commercial fishing. Moreover, for purposes of computing the capital base in a combined report, the combined group shall be considered a "manufacturer" for purposes of this subparagraph only if the combined group during the taxable year is principally engaged in the activities set forth in this subparagraph, or any combination thereof. A taxpayer or, in the case of a combined report, a combined group shall be "principally engaged" in activities described above if, during the taxable year, more than fifty percent of the gross receipts of the taxpayer or combined group, respec- tively, are derived from receipts from the sale of goods produced by such activities. In computing a combined group's gross receipts, inter- corporate receipts shall be eliminated. A "qualified New York manufac- turer" is a manufacturer that has property in New York that is described in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of section two hundred ten-B of this article and either (i) the adjusted basis of that property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (ii) all of its real and personal property is located in New York. In addi- tion, a "qualified New York manufacturer" means a taxpayer that is defined as a qualified emerging technology company under paragraph (c) A. 2009--B 8 of subdivision one of section thirty-one hundred two-e of the public authorities law regardless of the ten million dollar limitation expressed in subparagraph one of such paragraph. A taxpayer or, in the case of a combined report, a combined group, that does not satisfy the principally engaged test may be a qualified New York manufacturer if the taxpayer or the combined group employs during the taxable year at least two thousand five hundred employees in manufacturing in New York and the taxpayer or the combined group has property in the state used in manu- facturing, the adjusted basis of which for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one hundred million dollars. § 3. Clause (ii) of subparagraph 4 of paragraph (k) of subdivision 1 of section 11-654 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: (ii) A "qualified New York manufacturing corporation" is a manufactur- ing corporation that has property in the state [which] THAT is described in subparagraph five of this paragraph and either (A) the adjusted basis of such property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (B) more than fifty [percentum] PERCENT of its real and personal property is located in the state. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART E Section 1. Section 5 of part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program is amended to read as follows: § 5. This act shall take effect January 1, 2015, and shall apply to taxable years beginning on and after that date; provided, however, that this act shall expire and be deemed repealed January 1, [2020] 2023. § 2. This act shall take effect immediately. PART F Section 1. Paragraph 3 of subsection (a) of section 954 of the tax law, as amended by section 2 of part BB of chapter 59 of the laws of 2015, is amended to read as follows: (3) Increased by the amount of any taxable gift under section 2503 of the internal revenue code not otherwise included in the decedent's federal gross estate, made during the three year period ending on the decedent's date of death, but not including any gift made: (A) when the decedent was not a resident of New York state; or (B) before April first, two thousand fourteen; or (C) BETWEEN JANUARY FIRST, TWO THOUSAND NINETEEN AND JANUARY FIFTEENTH, TWO THOUSAND NINETEEN; OR (D) that is real or tangible personal property having an actual situs outside New York state at the time the gift was made. Provided, however that this paragraph shall not apply to the estate of a [decendent] DECEDENT dying on or after January first, two thousand [nineteen] TWENTY-SIX. § 2. Subsection (a) of section 954 of the tax law is amended by adding a new paragraph 4 to read as follows: (4) INCREASED BY THE VALUE OF ANY PROPERTY NOT OTHERWISE ALREADY INCLUDED IN THE DECEDENT'S FEDERAL GROSS ESTATE IN WHICH THE DECEDENT A. 2009--B 9 HAD A QUALIFYING INCOME INTEREST FOR LIFE IF A DEDUCTION WAS ALLOWED ON THE RETURN OF THE TAX IMPOSED BY THIS ARTICLE WITH RESPECT TO THE TRANS- FER OF SUCH PROPERTY TO THE DECEDENT BY REASON OF THE APPLICATION OF PARAGRAPH (7) OF SUBSECTION (B) OF SECTION 2056 OF THE INTERNAL REVENUE CODE, AS MADE APPLICABLE TO THE TAX IMPOSED BY THIS ARTICLE BY SECTION NINE HUNDRED NINETY-NINE-A OF THIS ARTICLE, WHETHER OR NOT A FEDERAL ESTATE TAX RETURN WAS REQUIRED TO BE FILED BY THE ESTATE OF THE TRANS- FERRING SPOUSE. § 3. Subsection (c) of section 955 of the tax law, as added by section 4 of part X of chapter 59 of the laws of 2014, is amended to read as follows: (c) Qualified terminable interest property election.-- Except as otherwise provided in this subsection, the election referred to in para- graph (7) of subsection (b) of section 2056 of the internal revenue code shall not be allowed under this article unless such election was made with respect to the federal estate tax return required to be filed under the provisions of the internal revenue code. If such election was made for the purposes of the federal estate tax, then such election must also be made by the executor on the return of the tax imposed by this arti- cle. Where no federal estate tax return is required to be filed, the executor [may] MUST make the election referred to in such paragraph (7) with respect to the tax imposed by this article on the return of the tax imposed by this article. Any election made under this subsection shall be irrevocable. § 4. This act shall take effect immediately; provided however that section one of this act shall apply to estates of decedents dying on or after January 16, 2019 and sections two and three of this act shall apply to estates of decedents dying on or after April 1, 2019. PART G Section 1. Section 1101 of the tax law is amended by adding a new subdivision (e) to read as follows: (E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH MARKETPLACE SELLER OR SELLERS. A PERSON "FACILITATES A SALE OF TANGIBLE PERSONAL PROPERTY" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTER- NET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFIL- IATE 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, A "SALE OF TANGIBLE PERSONAL PROPERTY" SHALL NOT INCLUDE THE RENTAL OF A PASSENGER CAR AS DESCRIBED IN SECTION ELEVEN HUNDRED SIXTY OF THIS CHAPTER BUT SHALL INCLUDE A LEASE DESCRIBED IN SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. FOR PURPOSES OF THIS PARAGRAPH, PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN ANOTHER, OR WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER A. 2009--B 10 PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER. (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 section 1 of part X of chapter 59 of the laws of 2018, 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, 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. § 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: (A) 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 (B) 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: (A) 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 A. 2009--B 11 OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (B) 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: (A) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A MARKETPLACE PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM THE MARKET- PLACE PROVIDER FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY, WITH RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY OCCURS IN THE STATE; AND (B) 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) SUBJECT TO THE APPROVAL OF THE COMMISSIONER, A MARKETPLACE SELLER MAY ENTER INTO AN AGREEMENT REGARDING THE FULFILLMENT OF THE REQUIRE- MENTS OF THIS ARTICLE INCLUDING AN AGREEMENT THAT ALLOWS THE MARKETPLACE SELLER TO COLLECT AND REMIT TAX FOR THE SALE OF TANGIBLE PERSONAL PROP- ERTY MADE ON THE PLATFORM OF A MARKETPLACE PROVIDER. § 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 OR INSUFFICIENT INFORMATION GIVEN TO THE MARKETPLACE PROVIDER BY THE MARKETPLACE SELLER. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE SELLER AND MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 46 of part K of chapter 61 of the laws of 2011, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this A. 2009--B 12 article, and the amount of tax payable thereon pursuant to the provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE MARKETPLACE SELLER HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF- ICATE OF COLLECTION FROM THE MARKETPLACE PROVIDER OR THE MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE PROVIDER AND THE MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY IS ACCURATE. § 6. Section 1142 of the tax law is amended by adding a new subdivi- sion 15 to read as follows: (15) TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAVE 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. § 7. This act shall take effect immediately and shall apply to sales made on or after June 1, 2019. PART H 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 is REPEALED. § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- trative code of the city of New York is REPEALED. § 5. This act shall take effect June 1, 2019, and shall apply to sales made and services rendered on and after that date, whether or not under a prior contract. PART I Section 1. Subdivision 3 of section 1204 of the real property tax law, as added by chapter 115 of the laws of 2018, is amended to read as follows: 3. Where the tentative equalization rate is not within plus or minus five [percentage points] PERCENT of the locally stated level of assess- ment, the assessor shall provide notice in writing to the local govern- A. 2009--B 13 ing body of any affected town, city, village, county and school district of the difference between the locally stated level of assessment and the tentative equalization rate. Such notice shall be made within ten days of the receipt of the tentative equalization rate, or within ten days of the filing of the tentative assessment roll, whichever is later, and shall provide the difference in the indicated total full value estimates of the locally stated level of assessment and the tentative equalization rate for the taxable property within each affected town, city, village, county and school district, where applicable. § 2. The real property tax law is amended by adding a new section 1211 to read as follows: § 1211. CONFIRMATION BY COMMISSIONER OF THE LOCALLY STATED LEVEL OF ASSESSMENT. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS TITLE, BEFORE THE COMMISSIONER DETERMINES A TENTATIVE EQUALIZATION RATE FOR A CITY, TOWN OR VILLAGE, HE OR SHE SHALL EXAMINE THE ACCURACY OF THE LOCALLY STATED LEVEL OF ASSESSMENT APPEARING ON THE TENTATIVE ASSESSMENT ROLL. IF THE COMMISSIONER CONFIRMS THE LOCALLY STATED LEVEL OF ASSESS- MENT, THEN AS SOON THEREAFTER AS IS PRACTICABLE, HE OR SHE SHALL ESTAB- LISH AND CERTIFY SUCH LOCALLY STATED LEVEL OF ASSESSMENT AS THE FINAL EQUALIZATION RATE FOR SUCH CITY, TOWN OR VILLAGE IN THE MANNER PROVIDED BY SECTIONS TWELVE HUNDRED TEN AND TWELVE HUNDRED TWELVE OF THIS TITLE. THE PROVISIONS OF SECTIONS TWELVE HUNDRED FOUR, TWELVE HUNDRED SIX AND TWELVE HUNDRED EIGHT OF THIS TITLE SHALL NOT APPLY IN SUCH CASES, UNLESS THE COMMISSIONER FINDS THAT THE FINAL ASSESSMENT ROLL DIFFERS FROM THE TENTATIVE ASSESSMENT ROLL TO AN EXTENT THAT RENDERS THE LOCALLY STATED LEVEL OF ASSESSMENT INACCURATE, AND RESCINDS THE FINAL EQUALIZATION RATE ON THAT BASIS. § 3. Paragraph (d) of subdivision 1 of section 1314 of the real prop- erty tax law, as amended by chapter 158 of the laws of 2002, is amended to read as follows: (d) (I) Such district superintendent shall also determine what propor- tion of any tax to be levied in such school district for school purposes during the current school year shall be levied upon each part of a city or town included in such school district by dividing the sum of the full valuation of real property in such part of a city or town by the total of all such full valuations of real property in such school district. PROVIDED, HOWEVER, THAT PRIOR TO THE LEVY OF TAXES, THE GOVERNING BODY OF THE SCHOOL DISTRICT MAY ADOPT A RESOLUTION DIRECTING SUCH PROPORTIONS TO BE BASED UPON THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER EITHER A THREE-YEAR PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE TWO PRIOR SCHOOL YEARS, OR OVER A FIVE-YEAR PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE FOUR PRIOR SCHOOL YEARS. ONCE SUCH A RESOLUTION HAS BEEN ADOPTED, THE PROPORTIONS FOR ENSUING SCHOOL YEARS SHALL CONTINUE TO BE BASED UPON THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER THE SELECTED PERIOD, UNLESS THE RESOLUTION PROVIDES OTHERWISE OR IS REPEALED. (II) Such proportions shall be expressed in the nearest exact ten thousandths and the school authorities of such school district shall levy such a proportion of any tax to be raised in the school district during the current school year upon each part of a city or town included in such school district as shall have been determined by the district superintendent. A new proportion shall be determined for each school year thereafter by the district superintendent in accordance with the provisions of this section by the use of the latest state equalization rates. In any such school district that is not within the jurisdiction of a district superintendent of schools, the duties which would other- A. 2009--B 14 wise be performed by the district superintendent under the provisions of this section, shall be performed by the school authorities of such district. § 4. This act shall take effect immediately. PART J Section 1. This Part enacts into law major components of legislation relating to the improvement of the administration of real property taxa- tion in accordance with the real property tax law and other laws relat- ing thereto. Each component is wholly contained within a Subpart identi- fied as Subparts A through F. 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 Intentionally Omitted SUBPART B Section 1. Paragraph (b) of subdivision 1 of section 523 of the real property tax law, as amended by chapter 223 of the laws of 1987, is amended to read as follows: (b) The board of assessment review shall consist of not less than three nor more than five members appointed by the legislative body of the local government or village OR AS PROVIDED BY SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF APPLICABLE. Members shall have a knowledge of property values in the local govern- ment or village. Neither the assessor nor any member of his or her staff may be appointed to the board of assessment review. A majority of such board shall consist of members who are not officers or employees of the local government or village. § 2. Subdivision 1 of section 1537 of the real property tax law, as added by chapter 512 of the laws of 1993, is amended and a new subdivi- sion 5 is added to read as follows: 1. (a) An assessing unit and a county shall have the power to enter into, amend, cancel and terminate an agreement for appraisal services, exemption services, [or] assessment services, OR ASSESSMENT REVIEW SERVICES, in the manner provided by this section. Such an agreement shall be considered an agreement for the provision of a "joint service" for purposes of article five-G of the general municipal law, notwith- standing the fact that the county would not have the power to perform such services in the absence of such an agreement. (b) Any such agreement shall be approved by both the assessing unit and the county, by a majority vote of the voting strength of each governing body. (c) In the case of an assessing unit, no such agreement shall be submitted to the governing body for approval unless at least forty-five days prior to such submission, the governing body shall have adopted a A. 2009--B 15 resolution, subject to a permissive referendum, authorizing the assess- ing unit to negotiate such an agreement with the county; provided, however, that such prior authorization shall not be required for an agreement to amend, cancel or terminate an existing agreement pursuant to this section. 5. AN AGREEMENT BETWEEN AN ASSESSING UNIT AND A COUNTY FOR ASSESSMENT REVIEW SERVICES SHALL PROVIDE FOR THE MEMBERS OF THE BOARD OF ASSESSMENT REVIEW OF THE ASSESSING UNIT TO BE APPOINTED BY THE LEGISLATIVE BODY OF THE COUNTY UPON THE RECOMMENDATION OF THE COUNTY DIRECTOR OF THE REAL PROPERTY TAX SERVICES. EACH MEMBER SO APPOINTED SHALL BE A RESIDENT OF THE COUNTY BUT NEED NOT BE A RESIDENT OF THE ASSESSING UNIT. THE BOARD OF ASSESSMENT REVIEW AS SO CONSTITUTED SHALL HAVE THE AUTHORITY TO RECEIVE, REVIEW AND RESOLVE PETITIONS FOR ASSESSMENT REVIEW FILED IN SUCH ASSESSING UNIT, AND FOR THE CORRECTIONS OF ERRORS THEREIN, TO THE FULL EXTENT SET FORTH IN ARTICLE FIVE OF THIS CHAPTER. § 3. Subdivision 1 of section 1408 of the real property tax law, as amended by chapter 473 of the laws of 1984, is amended to read as follows: 1. At the time and place and during the hours specified in the notice given pursuant to section fourteen hundred six of this chapter, the board of review shall meet to hear complaints relating to assessments brought before it. The board of trustees and assessors, or a committee of such board constituting at least a majority thereof and the assessors or a board of assessment review constituted pursuant to section five hundred twenty-three of this chapter, OR AS PROVIDED BY SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF APPLICABLE, shall constitute the board of review. § 4. This act shall take effect immediately. SUBPART C Section 1. Subdivision 4 of section 318 of the real property tax law, as amended by chapter 527 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: 4. Notwithstanding the provisions of this subdivision or any other law, the travel and other actual and necessary expenses incurred by an appointed or elected assessor, or by A PERSON APPOINTED ASSESSOR FOR A FORTHCOMING TERM, OR BY an assessor-elect prior to the commencement of his OR HER term, in satisfactorily completing courses of training as required by this title or as approved by the commissioner, including continuing education courses prescribed by the commissioner which are satisfactorily completed by any elected assessor, shall be a state charge upon audit by the comptroller. Travel and other actual and neces- sary expenses incurred by an acting assessor who has been exercising the powers and duties of the assessor for a period of at least six months, in attending training courses no earlier than twelve months prior to the date when courses of training and education are required, shall also be a state charge upon audit by the comptroller. Candidates for certif- ication as eligible for the position of assessor, other than assessors or assessors-elect, shall be charged for the cost of training materials and shall be responsible for all other costs incurred by them in connection with such training. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBDIVISION, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT A. 2009--B 16 WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS- SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE. § 2. Paragraph f of subdivision 3 of section 1530 of the real property tax law, as amended by chapter 361 of the laws of 1986 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: f. Expenses in attending training courses. Notwithstanding the provisions of any other law, the travel and other actual and necessary expenses incurred by a director or a person appointed director for a forthcoming term in attending courses of training as required by this subdivision or as approved by the commissioner shall be a state charge upon audit by the comptroller. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS PARAGRAPH, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS- SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE. § 3. This act shall take effect immediately. SUBPART D Section 1. Section 104 of the real property tax law, as added by section 1 of part U of chapter 61 of the laws of 2011, is amended to read as follows: § 104. Electronic real property tax administration. 1. Notwithstanding any provision of law to the contrary, the commissioner is hereby author- ized to establish standards for electronic real property tax adminis- tration (E-RPT). Such standards shall set forth the terms and conditions under which the various tasks associated with real property tax adminis- tration may be executed electronically, dispensing with the need for paper documents. Such tasks shall include ANY OR ALL OF THE FOLLOWING: (a) The filing of exemption applications; (b) The filing of petitions for administrative review of assessments; (c) The filing of petitions for judicial review of assessments; (d) The filing of applications for administrative corrections of errors; (e) The issuance of statements of taxes; (f) The payment of taxes, subject to the provisions of sections five and five-b of the general municipal law; (g) The provision of receipts for the payment of taxes; (h) The issuance of taxpayer notices required by law, including sections five hundred eight, five hundred ten, five hundred ten-a, five hundred eleven, five hundred twenty-five and five hundred fifty-one-a through five hundred fifty-six-b of this chapter; and (i) The furnishing of notices and certificates under this chapter relating to state equalization rates, residential assessment ratios, special franchise assessments, railroad ceilings, taxable state lands, advisory appraisals, and the certification of assessors and county directors or real property tax services, SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION. 2. Such standards shall be developed after consultation with local government officials, the office of court administration IN THE CASE OF STANDARDS RELATING TO PETITIONS FOR JUDICIAL REVIEW OF ASSESSMENTS, and A. 2009--B 17 the office of the state comptroller IN THE CASE OF STANDARDS RELATING TO PAYMENTS OR TAXES AND THE ISSUANCE OF RECEIPTS THEREFOR. 3. (a) Taxpayers shall not be required to accept notices, statements of taxes, receipts for the payment of taxes, or other documents elec- tronically unless they have so elected. Taxpayers who have not so elected shall be sent such communications in the manner otherwise provided by law. (b) [Assessors and other municipal officials shall not be required to accept and respond to communications from the commissioner electron- ically. (c)] The governing board of any municipal corporation may, by local law, ordinance or resolution, determine that it is in the public inter- est for such municipal corporation to provide electronic real property tax administration. Upon adoption of such local law, ordinance or resol- ution, such municipal corporation shall comply with standards set forth by the commissioner. [(d)] (C) The standards prescribed by the commissioner pursuant to this section RELATING TO COMMUNICATIONS WITH TAXPAYERS shall provide for the collection of electronic contact information, such as e-mail addresses and/or social network usernames, from taxpayers who have elected to receive electronic communications in accordance with the provisions of this section. Such information shall be exempt from public disclosure in accordance with section eighty-nine of the public officers law. 4. When a document has been transmitted electronically in accordance with the provisions of this section and the standards adopted by the commissioner hereunder, it shall be deemed to satisfy the applicable legal requirements to the same extent as if it had been mailed via the United States postal service. 5. (A) ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY, WHENEVER THE COMMISSIONER IS OBLIGED BY LAW TO MAIL A NOTICE OF THE DETERMINATION OF A TENTATIVE STATE EQUALIZATION RATE, TENTATIVE SPECIAL FRANCHISE ASSESS- MENT, TENTATIVE ASSESSMENT CEILING OR OTHER TENTATIVE DETERMINATION OF THE COMMISSIONER THAT IS SUBJECT TO ADMINISTRATIVE REVIEW, THE COMMIS- SIONER SHALL BE AUTHORIZED TO FURNISH THE REQUIRED NOTICE BY E-MAIL, OR BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, OR BOTH, AT HIS OR HER DISCRETION. WHEN PROVIDING NOTICE OF A TENTATIVE DETERMINATION BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, THE COMMISSIONER ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO INFORM THEM THAT THE NOTICE OF TENTATIVE DETERMINATION HAS BEEN POSTED ON THE WEBSITE. SUCH NOTICE OF TENTATIVE DETERMINATION SHALL NOT BE DEEMED COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER SHALL NOT BE REQUIRED TO FURNISH SUCH NOTICES BY POSTAL MAIL, EXCEPT AS PROVIDED BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION. (B) WHEN PROVIDING NOTICE OF A TENTATIVE DETERMINATION BY E-MAIL OR POSTING PURSUANT TO THIS SUBDIVISION, THE COMMISSIONER SHALL SPECIFY AN E-MAIL ADDRESS TO WHICH COMPLAINTS REGARDING SUCH TENTATIVE DETERMI- NATION MAY BE SENT. A COMPLAINT THAT IS SENT TO THE COMMISSIONER BY E-MAIL TO THE SPECIFIED E-MAIL ADDRESS BY THE DATE PRESCRIBED BY LAW FOR THE MAILING OF SUCH COMPLAINTS SHALL BE DEEMED VALID TO THE SAME EXTENT AS IF IT HAD BEEN SENT BY POSTAL MAIL. (C) WHEN A FINAL DETERMINATION IS MADE IN SUCH A MATTER, NOTICE OF THE FINAL DETERMINATION AND ANY CERTIFICATE RELATING THERETO SHALL BE FURNISHED BY E-MAIL OR BY A WEBSITE POSTING, OR BOTH AT THE COMMISSION- ER'S DISCRETION, AND NEED NOT BE PROVIDED BY POSTAL MAIL, EXCEPT AS A. 2009--B 18 PROVIDED BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION. WHEN PROVIDING NOTICE OF A FINAL DETERMINATION BY WEBSITE POSTING, THE COMMISSIONER ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO INFORM THEM THAT THE NOTICE OF FINAL DETERMINATION HAS BEEN POSTED ON THE WEBSITE. SUCH NOTICE OF FINAL DETERMINATION SHALL NOT BE DEEMED COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT. (D) IF AN ASSESSOR HAS ADVISED THE COMMISSIONER IN WRITING THAT HE OR SHE PREFERS TO RECEIVE THE NOTICES DESCRIBED IN THIS SUBDIVISION BY POSTAL MAIL, THE COMMISSIONER SHALL THEREAFTER SEND SUCH NOTICES TO THAT ASSESSOR BY POSTAL MAIL, AND NEED NOT SEND SUCH NOTICES TO THAT ASSESSOR BY E-MAIL. THE COMMISSIONER SHALL PRESCRIBE A FORM THAT ASSESSORS MAY USE TO ADVISE THE COMMISSIONER OF THEIR PREFERENCE FOR POSTAL MAIL. (E) IF THE COMMISSIONER LEARNS THAT AN E-MAIL ADDRESS TO WHICH A NOTICE HAS BEEN SENT PURSUANT TO THIS SUBDIVISION IS NOT VALID, AND THE COMMISSIONER CANNOT FIND A VALID E-MAIL ADDRESS FOR THAT PARTY, THE COMMISSIONER SHALL RESEND THE NOTICE TO THE PARTY BY POSTAL MAIL. IF THE COMMISSIONER DOES NOT HAVE A VALID E-MAIL ADDRESS FOR THE PARTY AT THE TIME THE NOTICE IS INITIALLY REQUIRED TO BE SENT, THE COMMISSIONER SHALL SEND THE NOTICE TO THAT PARTY BY POSTAL MAIL. (F) ON OR BEFORE NOVEMBER THIRTIETH, TWO THOUSAND NINETEEN, THE COMMISSIONER SHALL SEND A NOTICE BY POSTAL MAIL TO ASSESSORS, TO CHIEF EXECUTIVE OFFICERS OF ASSESSING UNITS, AND TO OWNERS OF SPECIAL FRAN- CHISE PROPERTY AND RAILROAD PROPERTY, INFORMING THEM OF THE PROVISIONS OF THIS SECTION. THE NOTICE TO BE SENT TO ASSESSORS SHALL INCLUDE A COPY OF THE FORM PRESCRIBED PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVI- SION. (G) AS USED IN THIS SUBDIVISION, THE TERM "POSTAL MAIL" SHALL MEAN MAIL THAT IS PHYSICALLY DELIVERED TO THE ADDRESSEE BY THE UNITED STATES POSTAL SERVICE. § 2. This act shall take effect immediately. SUBPART E Section 1. Subdivision 4 of section 302 of the real property tax law, as amended by chapter 348 of the laws of 2007, is amended to read as follows: 4. The taxable status of a special franchise shall be determined on the basis of its value and its ownership as of the first day of [July] JANUARY of the year preceding the year in which the assessment roll on which such property is to be assessed is completed and filed in the office of the city or town clerk, except that taxable status of such properties shall be determined on the basis of ownership as of the first day of [July] JANUARY of the second year preceding the date required by law for the filing of the final assessment roll for purposes of all village assessment rolls. § 2. Subdivision 2 of section 606 of the real property tax law, as amended by chapter 743 of the laws of 2005 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: 2. In any assessing unit which has completed a revaluation since nine- teen hundred fifty-three or which does not contain property that was assessed in nineteen hundred fifty-three, the commissioner shall deter- mine the full value of such special franchise as of the [valuation date of the assessing unit] TAXABLE STATUS DATE SPECIFIED BY SUBDIVISION FOUR OF SECTION THREE HUNDRED TWO OF THIS CHAPTER. Such full value shall be determined by the commissioner for purposes of sections six hundred A. 2009--B 19 eight, six hundred fourteen and six hundred sixteen of this article. These full values shall be entered on the assessment roll at the level of assessment, which shall be the uniform percentage of value, as required by section five hundred two of this chapter, appearing on the tentative assessment roll upon which the assessment is entered. Whenever a final state equalization rate, or, in the case of a special assessing unit, a class equalization rate, is established that is different from a level of assessment applied pursuant to this paragraph, any public offi- cial having custody of that assessment roll is hereby authorized and directed to recompute these assessments to reflect that equalization rate, provided such final rate is established by the commissioner at least ten days prior to the date for levy of taxes against those assess- ments. § 3. This act shall take effect January 1, 2020. SUBPART F Section 1. The real property tax law is amended by adding a new section 575-a to read as follows: § 575-A. ELECTRIC GENERATING FACILITY ANNUAL REPORTS. 1. EVERY CORPO- RATION, COMPANY, ASSOCIATION, JOINT STOCK ASSOCIATION, PARTNERSHIP AND PERSON, THEIR LESSEES, TRUSTEES OR RECEIVERS APPOINTED BY ANY COURT WHATSOEVER, OWNING, OPERATING OR MANAGING ANY ELECTRIC GENERATING FACIL- ITY IN THE STATE SHALL ANNUALLY FILE WITH THE COMMISSIONER, BY APRIL THIRTIETH, A REPORT SHOWING THE INVENTORY, REVENUE, AND EXPENSES ASSOCI- ATED THEREWITH FOR THE MOST RECENT FISCAL YEAR. SUCH REPORT SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER. 2. WHEN USED IN THIS SECTION, "ELECTRIC GENERATING FACILITY" SHALL MEAN ANY FACILITY THAT GENERATES ELECTRICITY FOR SALE, DIRECTLY OR INDI- RECTLY, TO THE PUBLIC, INCLUDING THE LAND UPON WHICH THE FACILITY IS LOCATED, ANY EQUIPMENT USED IN SUCH GENERATION, AND EQUIPMENT LEADING FROM THE FACILITY TO THE INTERCONNECTION WITH THE ELECTRIC TRANSMISSION SYSTEM, BUT SHALL NOT INCLUDE: (A) ANY EQUIPMENT IN THE ELECTRIC TRANSMISSION SYSTEM; AND (B) ANY ELECTRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A RESIDEN- TIAL CUSTOMER OF AN ELECTRIC GENERATING FACILITY, INCLUDING THE LAND UPON WHICH THE EQUIPMENT IS LOCATED, WHEN LOCATED AND USED AT HIS OR HER RESIDENCE. 3. EVERY ELECTRIC GENERATING FACILITY OWNER, OPERATOR, OR MANAGER FAILING TO MAKE THE REPORT REQUIRED BY THIS SECTION, OR FAILING TO MAKE ANY REPORT REQUIRED BY THE COMMISSIONER PURSUANT TO THIS SECTION WITHIN THE TIME SPECIFIED BY IT, SHALL FORFEIT TO THE PEOPLE OF THE STATE THE SUM OF UP TO TEN THOUSAND DOLLARS FOR EVERY SUCH FAILURE AND THE ADDI- TIONAL SUM OF UP TO ONE THOUSAND DOLLARS FOR EACH DAY THAT SUCH FAILURE CONTINUES. § 2. This act shall take effect January 1, 2020. § 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. A. 2009--B 20 § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through F of this Part shall be as specifically set forth in the last section of such Subparts. PART K Section 1. Section 3-d of the general municipal law, as added by section 2 of part E of chapter 59 of the laws of 2018, is REPEALED. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 12, 2018. PART L Section 1. The tax law is amended by adding a new section 44 to read as follows: § 44. EMPLOYER-PROVIDED CHILD CARE CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN AMOUNT EQUAL TO THE PORTION OF THE CREDIT THAT IS ALLOWED TO THE TAXPAYER UNDER SECTION 45F OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE TO (I) QUALIFIED CHILD CARE EXPENDITURES PAID OR INCURRED WITH RESPECT TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN THE STATE, AND TO (II) QUALIFIED CHILD CARE RESOURCE AND REFERRAL EXPENDITURES PAID OR INCURRED WITH RESPECT TO THE TAXPAYER'S EMPLOYEES WORKING IN THE STATE. THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS. IF THE ENTITY OPERATING THE QUALI- FIED CHILD CARE FACILITY IS A PARTNERSHIP OR A NEW YORK S CORPORATION, THEN SUCH CAP SHALL BE APPLIED AT THE ENTITY LEVEL, SO THE AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF SUCH ENTITY IN A TAXABLE YEAR DOES NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS. (B) CREDIT RECAPTURE. IF THERE IS A CESSATION OF OPERATION OR CHANGE IN OWNERSHIP, AS DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE RELATING TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN THE STATE, THE TAXPAYER SHALL ADD BACK THE APPLICABLE RECAPTURE PERCENTAGE OF THE CREDIT ALLOWED UNDER THIS SECTION IN ACCORDANCE WITH THE RECAPTURE PROVISIONS OF SECTION 45F OF THE INTERNAL REVENUE CODE, BUT THE RECAP- TURE AMOUNT SHALL BE LIMITED TO THE CREDIT ALLOWED UNDER THIS SECTION. (C) REPORTING REQUIREMENTS. A TAXPAYER THAT HAS CLAIMED A CREDIT UNDER THIS SECTION SHALL NOTIFY THE COMMISSIONER OF ANY CESSATION OF OPERA- TION, CHANGE IN OWNERSHIP, OR AGREEMENT TO ASSUME RECAPTURE LIABILITY AS SUCH TERMS ARE DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE, IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER. (D) DEFINITIONS. THE TERMS "QUALIFIED CHILD CARE EXPENDITURES", "QUAL- IFIED CHILD CARE FACILITY", "QUALIFIED CHILD CARE RESOURCE AND REFERRAL EXPENDITURE", "CESSATION OF OPERATION", "CHANGE OF OWNERSHIP", AND "APPLICABLE RECAPTURE PERCENTAGE" SHALL HAVE THE SAME MEANINGS AS IN SECTION 45F OF THE INTERNAL REVENUE CODE. (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53; (2) ARTICLE 22: SECTION 606(I), SUBSECTIONS (I) AND (JJJ); (3) ARTICLE 33: SECTION 1511, SUBDIVISION (DD). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: 53. EMPLOYER-PROVIDED CHILD CARE CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN A. 2009--B 21 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 MAY 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 WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED 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. (C) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER. § 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) EMPLOYER-PROVIDED CHILD AMOUNT OF CREDIT UNDER SUBDIVISION CARE CREDIT (JJJ) FIFTY-THREE 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) EMPLOYER-PROVIDED CHILD CARE 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 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 WILL BE PAID THEREON. (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER. § 5. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) EMPLOYER-PROVIDED CHILD CARE 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. THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OR SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAXPAYER'S TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER A. 2009--B 22 § 6. This act shall take effect immediately and apply to years begin- ning on or after January 1, 2020. PART M Section 1. Paragraph 1 of subsection (b) of section 631 of the tax law is amended by adding a new subparagraph (D-1) to read as follows: (D-1) GAMBLING WINNINGS IN EXCESS OF FIVE THOUSAND DOLLARS FROM WAGER- ING TRANSACTIONS WITHIN THE STATE; OR § 2. Paragraph 2 of subsection (b) of section 671 of the tax law is amended by adding a new subparagraph (E) to read as follows: (E) ANY GAMBLING WINNINGS FROM A WAGERING TRANSACTION WITHIN THIS STATE, IF THE PROCEEDS FROM THE WAGER ARE SUBJECT TO WITHHOLDING UNDER SECTION THREE THOUSAND FOUR HUNDRED TWO OF THE INTERNAL REVENUE CODE. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019; provided, however that the amendments to subsection (b) of section 671 of the tax law made by section two of this act shall not affect the expiration of such subsection and shall be deemed to expire therewith. PART N Section 1. Subdivision (c) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: (c) For purposes of this [subdivision] SECTION, the term "eligible farmer" means a taxpayer whose federal gross income from farming AS DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER for the taxable year is at least two-thirds of excess federal gross income. Excess federal gross income means the amount of federal gross income from all sources for the taxable year in excess of thirty thousand dollars. For [the] purposes of this [subdivision] SECTION, payments from the state's farmland protection program, administered by the department of agriculture and markets, shall be included as federal gross income from farming for otherwise eligible farmers. § 2. Section 42 of the tax law is amended by adding a new subdivision (d-1) to read as follows: (D-1) SPECIAL RULES. IF MORE THAN FIFTY PERCENT OF SUCH ELIGIBLE FARM- ER'S FEDERAL GROSS INCOME FROM FARMING IS FROM THE SALE OF WINE FROM A LICENSED FARM WINERY AS PROVIDED FOR IN ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW, OR FROM THE SALE OF CIDER FROM A LICENSED FARM CIDERY AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVER- AGE CONTROL LAW, THEN AN ELIGIBLE FARM EMPLOYEE OF SUCH ELIGIBLE FARMER SHALL BE INCLUDED FOR PURPOSES OF CALCULATING THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION ONLY IF SUCH ELIGIBLE FARM EMPLOYEE IS EMPLOYED BY SUCH ELIGIBLE FARMER ON QUALIFIED AGRICULTURAL PROPERTY AS DEFINED IN PARAGRAPH FOUR OF SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019. PART O Section 1. Section 12 of part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related infor- mation and relating to the voluntary compliance initiative, as amended A. 2009--B 23 by section 1 of part M of chapter 60 of the laws of 2016, is amended to read as follows: § 12. This act shall take effect immediately; provided, however, that (i) section one of this act shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service at any time with respect to "listed transactions" as described in such paragraph 1, and shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service with respect to "reportable transactions" as described in such paragraph 1, other than "listed transactions", in which a taxpayer participated during any taxable year for which the statute of limitations for assessment has not expired as of the date this act shall take effect, and shall apply to returns or statements described in such paragraph 1 required to be filed by taxpayers (or persons as described in such paragraph) with the commissioner of taxation and finance on or after the sixtieth day after this act shall have become a law; and (ii) sections two through four and seven through nine of this act shall apply to any tax liability for which the statute of limitations on assessment has not expired as of the date this act shall take effect[; and (iii) provided, further, that the provisions of this act, except section five of this act, shall expire and be deemed repealed July 1, 2019; provided, that, such expiration and repeal shall not affect any requirement imposed pursuant to this act]. § 2. Subsection (aa) of section 685 of the tax law is REPEALED and a new subsection (aa) is added to read as follows: (AA) TAX PREPARER PENALTY.-- (1) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN OR CREDIT CLAIM FORM THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND, AND THE PREPARER KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT SAID POSITION WAS NOT PROPER, AND SUCH POSITION WAS NOT ADEQUATELY DISCLOSED ON THE RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPAR- ER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS. (2) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN OR CREDIT CLAIM FORM THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND AND THE UNDERSTATEMENT OF THE TAX LIABILITY OR THE INCREASED CLAIM FOR REFUND IS DUE TO THE PREPARER'S RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH PREPARER SHALL PAY A PENALTY OF BETWEEN FIVE HUNDRED AND FIVE THOUSAND DOLLARS. THE AMOUNT OF THE PENALTY PAYABLE BY ANY PERSON BY REASON OF THIS PARAGRAPH SHALL BE REDUCED BY THE AMOUNT OF THE PENALTY PAID BY SUCH PERSON BY REASON OF PARAGRAPH ONE OF THIS SUBSECTION. (3) FOR PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT OF TAX LIABILITY" MEANS ANY UNDERSTATEMENT OF THE NET AMOUNT PAYABLE WITH RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR ANY OVERSTATEMENT OF THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX. (4) FOR PURPOSES OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARED" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE. (5) THIS SUBSECTION SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION (R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH UNDERSTATEMENT. A. 2009--B 24 § 3. Subsection (u) of section 685 of the tax law is amended by adding three new paragraphs (1), (2), and (6) to read as follows: (1) FAILURE TO SIGN RETURN OR CLAIM FOR REFUND. IF A TAX RETURN PREPARER WHO IS REQUIRED PURSUANT TO PARAGRAPH ONE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE TO SIGN A RETURN OR CLAIM FOR REFUND FAILS TO COMPLY WITH SUCH REQUIREMENT WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, THE TAX RETURN PREPARER SHALL BE SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH FAILURE TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR BY THE TAX RETURN PREPARER MUST NOT EXCEED TEN THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO SIGN HIS OR HER NAME ON ANY RETURN THAT REQUIRES THE TAX RETURN PREPARER'S SIGNATURE DURING A SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE FIVE HUNDRED DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF THE PENALTY UNDER PARAGRAPH THREE OF SUBSECTION (G) OF SECTION THIRTY- TWO OF THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND. (2) FAILURE TO FURNISH IDENTIFYING NUMBER. IF A TAX RETURN PREPARER FAILS TO INCLUDE ANY IDENTIFYING NUMBER REQUIRED TO BE INCLUDED ON ANY RETURN OR CLAIM FOR REFUND PURSUANT TO PARAGRAPH TWO OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE, THE TAX RETURN PREPARER SHALL BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS FOR EACH SUCH FAILURE, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR MUST NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS; PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO INCLUDE THE IDENTIFYING NUMBER ON ONE OR MORE RETURNS DURING A SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE TWO HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF THE PENALTY UNDER PARAGRAPH FOUR OF SUBSECTION (G) OF SECTION THIRTY-TWO OF THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND. (6) FOR PURPOSES OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARER" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE. § 4. This act shall take effect immediately; provided, however, that the amendments to subsection (u) of section 685 of the tax law made by section three of this act shall apply to tax documents filed or required to be filed for taxable years beginning on or after January 1, 2019. PART P Section 1. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subpar- agraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, as added by section 1 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: A. 2009--B 25 If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over $43,000 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over $161,550 Over $323,200 BUT NOT OVER $19,674 plus 6.85% of excess $2,155,350 over $323,200 OVER $2,155,350 BUT NOT OVER $145,177 PLUS 8.82% OF EXCESS OVER $5,000,000 $2,155,350 OVER $5,000,000 BUT NOT OVER $396,075 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $862,075 PLUS 9.82% OF EXCESS OVER $100,000,000 $10,000,000 OVER $100,000,000 $9,700,075 PLUS 10.32% OF EXCESS OVER $100,000,000 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over $43,000 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over $161,550 Over $323,200 BUT NOT OVER $19,403 plus 6.85% of excess $2,155,350 over $323,200 OVER $2,155,350 BUT NOT OVER $144,905 PLUS 8.82% OF EXCESS OVER $5,000,000 $2,155,350 OVER $5,000,000 BUT NOT OVER $395,803 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $861,803 PLUS 9.82% OF EXCESS OVER $100,000,000 $10,000,000 OVER $100,000,000 $9,699,803 PLUS 10.32% OF EXCESS OVER $100,000,000 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over A. 2009--B 26 $27,900 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over $161,550 Over $323,200 BUT NOT OVER $19,124 plus 6.85% of excess over $2,155,350 $323,200 OVER $2,155,350 BUT NOT OVER $144,626 PLUS 8.82% OF EXCESS OVER $5,000,000 $2,155,350 OVER $5,000,000 BUT NOT OVER $395,524 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $861,524 PLUS 9.82% OF EXCESS OVER $100,000,000 $10,000,000 OVER $100,000,000 $9,699,524 PLUS 10.32% OF EXCESS OVER $100,000,000 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 BUT NOT OVER $18,834 plus 6.85% of $2,155,350 excess over $323,200 OVER $2,155,350 BUT NOT OVER $144,336 PLUS 8.82% OF EXCESS $5,000,000 OVER $2,155,350 OVER $5,000,000 BUT NOT OVER $395,234 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $861,234 PLUS 9.82% OF EXCESS OVER $100,000,000 $10,000,000 OVER $100,000,000 $9,699,234 PLUS 10.32% OF EXCESS OVER $100,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over $161,550 Over $323,200 BUT NOT OVER $18,544 plus 6.85% of $2,155,350 excess over $323,200 OVER $2,155,350 BUT NOT OVER $144,047 PLUS 8.82% OF EXCESS OVER $5,000,000 $2,155,350 OVER $5,000,000 BUT NOT OVER $394,945 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $860,945 PLUS 9.82% OF EXCESS OVER $100,000,000 $10,000,000 OVER $100,000,000 $9,698,945 PLUS 10.32% OF EXCESS A. 2009--B 27 OVER $100,000,000 (viii) For taxable years beginning after two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over $161,550 Over $323,200 BUT NOT OVER $18,252 plus 6.85% of $2,155,350 excess over $323,200 OVER $2,155,350 BUT NOT OVER $143,754 PLUS 8.82% OF EXCESS $5,000,000 OVER $2,155,350 OVER $5,000,000 BUT NOT OVER $394,652 PLUS 9.32% OF EXCESS $10,000,000 OVER $5,000,000 OVER $10,000,000 BUT NOT $860,652 PLUS 9.82% OF EXCESS OVER $100,000,000 OVER $10,000,000 OVER $100,000,000 $9,698,652 PLUS 10.32% OF EXCESS OVER $100,000,000 § 2. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, as added by section 2 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over $32,200 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over $107,650 Over $269,300 BUT NOT OVER $16,524 plus 6.85% of $1,616,450 excess over $269,300 OVER $1,616,450 BUT NOT OVER $108,804 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,616,450 OVER $5,000,000 BUT NOT OVER $407,233 PLUS 9.32% OF EXCESS $10,000,000 OVER $5,000,000 OVER $10,000,000 BUT NOT $873,233 PLUS 9.82% OF EXCESS OVER $100,000,000 OVER $10,000,000 OVER $100,000,000 $9,711,233 PLUS 10.32% OF EXCESS OVER $100,000,000 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over A. 2009--B 28 $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over $32,200 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over $107,650 Over $269,300 BUT NOT OVER $16,304 plus 6.85% of $1,616,450 excess over $269,300 OVER $1,616,450 BUT NOT OVER $108,584 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,616,450 OVER $5,000,000 BUT NOT OVER $407,013 PLUS 9.32% OF EXCESS $10,000,000 OVER $5,000,000 OVER $10,000,000 BUT NOT OVER $873,013 PLUS 9.82% OF EXCESS $100,000,000 OVER $10,000,000 OVER $100,000,000 $9,711,013 PLUS 10.32% OF EXCESS OVER $100,000,000 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over $20,900 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over $107,650 Over $269,300 BUT NOT OVER $16,079 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 BUT NOT OVER $108,359 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,616,450 OVER $5,000,000 BUT NOT OVER $406,788 PLUS 9.32% OF EXCESS $10,000,000 OVER $5,000,000 OVER $10,000,000 BUT NOT OVER $872,788 PLUS 9.82% OF EXCESS $100,000,000 OVER $10,000,000 OVER $100,000,000 $9,710,788 PLUS 10.32% OF EXCESS OVER $100,000,000 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over $107,650 Over $269,300 BUT NOT OVER $15,845 plus 6.85% of excess $1,616,450 over $269,300 A. 2009--B 29 OVER $1,616,450 BUT NOT OVER $108,125 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,616,450 OVER $5,000,000 BUT NOT OVER $406,554 PLUS 9.32% OF EXCESS $10,000,000 OVER $5,000,000 OVER $10,000,000 BUT NOT OVER $872,554 PLUS 9.82% OF EXCESS $100,000,000 OVER $10,000,000 OVER $100,000,000 $9,710,554 PLUS 10.32% OF EXCESS OVER $100,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 BUT NOT OVER $15,612 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 BUT NOT OVER $107,892 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,616,450 OVER $5,000,000 BUT NOT OVER $406,321 PLUS 9.32% OF EXCESS $10,000,000 OVER $5,000,000 OVER $10,000,000 BUT NOT OVER $872,321 PLUS 9.82% OF EXCESS $100,000,000 OVER $10,000,000 OVER $100,000,000 $9,710,321 PLUS 10.32% OF EXCESS OVER $100,000,000 (viii) For taxable years beginning after two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over $20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over $107,650 Over $269,300 BUT NOT OVER $15,371 plus 6.85% of excess over $1,616,450 $269,300 OVER $1,616,450 BUT NOT OVER $107,651 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,616,450 OVER $5,000,000 BUT NOT OVER $406,080 PLUS 9.32% OF EXCESS $10,000,000 OVER $5,000,000 OVER $10,000,000 BUT NOT OVER $872,080 PLUS 9.82% OF EXCESS $100,000,000 OVER $10,000,000 OVER $100,000,000 $9,710,080 PLUS 10.32% OF EXCESS OVER $100,000,000 § 3. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, as added by section 3 of part R of chapter 59 of the laws of 2017, is amended to read as follows: A. 2009--B 30 (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over $21,400 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over $80,650 Over $215,400 BUT NOT OVER $13,288 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 BUT NOT OVER $72,345 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $418,305 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $884,305 PLUS 9.82% OF EXCESS OVER $100,000,000 $10,000,000 OVER $100,000,000 $9,722,305 PLUS 10.32% OF EXCESS OVER $100,000,000 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over $21,400 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over $80,650 Over $215,400 BUT NOT OVER $13,109 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 BUT NOT OVER $72,166 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $418,126 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $884,126 PLUS 9.82% OF EXCESS OVER $100,000,000 $10,000,000 OVER $100,000,000 $9,722,126 PLUS 10.32% OF EXCESS OVER $100,000,000 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over A. 2009--B 31 $11,700 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over $13,900 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over $80,650 Over $215,400 BUT NOT OVER $12,926 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 BUT NOT OVER $71,984 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $417,944 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $883,944 PLUS 9.82% OF EXCESS OVER $100,000,000 $10,000,000 OVER $100,000,000 $9,721,944 PLUS 10.32% OF EXCESS OVER $100,000,000 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 BUT NOT OVER $12,738 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 BUT NOT OVER $71,796 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $417,756 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $883,756 PLUS 9.82% OF EXCESS OVER $100,000,000 $10,000,000 OVER $100,000,000 $9,721,756 PLUS 10.32% OF EXCESS OVER $100,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 BUT NOT OVER $12,550 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 BUT NOT OVER $71,608 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $417,568 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $883,568 PLUS 9.82% OF EXCESS OVER A. 2009--B 32 $100,000,000 $10,000,000 OVER $100,000,000 $9,721,568 PLUS 10.32% OF EXCESS OVER $100,000,000 (viii) For taxable years beginning after two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over $80,650 Over $215,400 BUT NOT OVER $12,356 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 BUT NOT OVER $71,413 PLUS 8.82% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $417,373 PLUS 9.32% OF EXCESS OVER $10,000,000 $5,000,000 OVER $10,000,000 BUT NOT OVER $883,373 PLUS 9.82% OF EXCESS OVER $100,000,000 $10,000,000 OVER $100,000,000 $9,721,373 PLUS 10.32% OF EXCESS OVER $100,000,000 § 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 601 of the tax law, as amended by section 4 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (D) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over two million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and [before January first, two thou- sand twenty] THEREAFTER. § 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 601 of the tax law, as amended by section 5 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (b) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (b) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million five hundred thousand dollars and the denominator is fifty thou- A. 2009--B 33 sand dollars. This subparagraph shall apply only to taxable years begin- ning on or after January first, two thousand twelve and [before January first, two thousand twenty] THEREAFTER. § 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 601 of the tax law, as amended by section 6 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (c) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (c) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and [before January first, two thou- sand twenty] THEREAFTER. § 7. Section 601 of the tax law is amended by adding a new subsection (d-2) to read as follows: (D-2) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND NINETEEN FOR A TAXPAYER WHOSE NEW YORK TAXABLE INCOME IS OVER $5,000,000, THERE IS HEREBY IMPOSED A SUPPLE- MENTAL TAX IN ADDITION TO THE TAX IMPOSED UNDER SUBSECTIONS (A), (B), (C) AND (D-1) OF THIS SECTION FOR THE PURPOSE OF RECAPTURING THE BENEFIT OF THE TAX TABLES CONTAINED IN SUCH SUBSECTIONS. DURING THESE TAXABLE YEARS, ANY REFERENCE IN THIS CHAPTER TO SUBSECTION (D) OF THIS SECTION SHALL BE READ AS A REFERENCE TO THIS SUBSECTION. (1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT SURVIVING SPOUSES, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 9.32 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C) OF PARAGRAPH ONE OF SUBSECTION (D-1) OF THIS SECTION. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32 PERCENT TAX RATE. (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 9.82 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C) OF PARAGRAPH ONE OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX TABLE A. 2009--B 34 BENEFITS IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TEN MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.82 PERCENT TAX RATE. (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 10.32 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C) OF PARAGRAPH ONE OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESS- ER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (D) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE TAX TABLES IN SUBSECTION (A) OF THIS SECTION MULTIPLIED BY THE TAXPAY- ER'S TAXABLE INCOME. (2) FOR RESIDENT HEADS OF HOUSEHOLDS, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARA- GRAPHS (A), (B) AND (C) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 9.32 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF PARAGRAPH TWO OF SUBSECTION (D-1) OF THIS SECTION. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32 PERCENT TAX RATE. (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 9.82 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF PARAGRAPH TWO OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX TABLE BENEFITS IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TEN MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 10.32 PERCENT RATE OF TAX FOR THE A. 2009--B 35 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF PARAGRAPH TWO OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESS- ER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (D) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE TAX TABLES IN SUBSECTION (B) OF THIS SECTION MULTIPLIED BY THE TAXPAY- ER'S TAXABLE INCOME. (3) FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS FILING SEPARATE RETURNS AND RESIDENT ESTATES AND TRUSTS, THE SUPPLE- MENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 9.32 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF PARAGRAPH THREE OF SUBSECTION (D-1) OF THIS SECTION. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32 PERCENT TAX RATE. (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 9.82 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPH (A) OF PARAGRAPH THREE OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX TABLE BENEFITS IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TEN MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 10.32 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF PARAGRAPH THREE OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESS- ER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS A. 2009--B 36 INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (D) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE TAX TABLES IN SUBSECTION (C) OF THIS SECTION MULTIPLIED BY THE TAXPAY- ER'S TAXABLE INCOME. § 8. Subsection (f) of section 614 of the tax law, as amended by section 11 of part FF of chapter 59 of the laws of 2013, is amended to read as follows: (f) Adjusted standard deduction. For taxable years beginning after two thousand seventeen, the standard deductions set forth in this section shall be the amounts set forth in this section adjusted by the cost of living adjustment prescribed in section six hundred one-a of this [part] ARTICLE for tax years two thousand thirteen [through two thousand seven- teen] AND THEREAFTER. § 9. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2020. PART Q Section 1. Subsection (g) of section 615 of the tax law, as amended by section 1 of part S of chapter 59 of the laws of 2017, is amended to read as follows: (g) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, THE NEW YORK ITEM- IZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS MODI- FIED BY PARAGRAPH NINE OF SUBSECTION (C) OF THIS SECTION AND AS LIMITED BY THIS SUBSECTION. (1) With respect to an individual whose New York adjusted gross income is over one million dollars and no more than ten million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxa- ble years beginning after two thousand nine and before two thousand [twenty] TWENTY-FIVE. With respect to an individual whose New York adjusted gross income is over one million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning in two thousand nine or after two thousand [nineteen] TWENTY-FOUR. (2) With respect to an individual whose New York adjusted gross income is over ten million dollars, the New York itemized deduction shall be an amount equal to twenty-five percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning after two thousand nine and ending before two thousand [twenty] TWENTY-FIVE. § 2. Subdivision (g) of section 11-1715 of the administrative code of the city of New York, as amended by section 2 of part S of chapter 59 of the laws of 2017, is amended to read as follows: (g) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, THE CITY ITEMIZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS LIMITED BY THIS SUBDIVISION. (1) With respect to an individual whose New York adjusted gross income is over one million dollars but no more than ten million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxa- A. 2009--B 37 ble years beginning after two thousand nine and before two thousand [twenty] TWENTY-FIVE. With respect to an individual whose New York adjusted gross income is over one million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning in two thousand nine or after two thousand [nineteen] TWENTY-FOUR. (2) With respect to an individual whose New York adjusted gross income is over ten million dollars, the New York itemized deduction shall be an amount equal to twenty-five percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning after two thousand nine and ending before two thousand [twenty] TWENTY-FIVE. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART R Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as amended by chapter 315 of the laws of 2017, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state purchased before January first, two thousand [twenty] TWENTY-THREE. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seven- teen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as amended by chapter 315 of the laws of 2017, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thou- sand seven and on or after January first, two thousand eight and before January first, two thousand [twenty] TWENTY-THREE. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seventeen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 3. This act shall take effect immediately. PART S Section 1. Paragraph (e) of section 23 of part U of chapter 61 of the laws of 2011 amending the real property tax law and other laws relating to establishing standards for electronic tax administration, as amended by section 5 of part G of chapter 60 of the laws of 2016, is amended to read as follows: A. 2009--B 38 (e) sections twenty-one and twenty-one-a of this act shall expire and be deemed repealed December 31, [2019] 2024. § 2. This act shall take effect immediately. PART T Section 1. Subdivision 3 of section 77 of the cooperative corporations law, as amended by chapter 429 of the laws of 1992, is amended to read as follows: 3. Such annual fee shall be paid for each calendar year on the fifteenth day of March next succeeding the close of such calendar year BUT SHALL NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY; PROVIDED, HOWEVER, THAT COOPERATIVE CORPORATIONS DESCRIBED IN SUBDIVI- SIONS ONE OR TWO OF THIS SECTION SHALL CONTINUE TO NOT BE SUBJECT TO THE FRANCHISE, LICENSE, AND CORPORATION TAXES REFERENCED IN SUCH SUBDIVI- SIONS OR, IN THE CASE OF COOPERATIVE COOPERATIONS DESCRIBED IN SUBDIVI- SION TWO OF THIS SECTION, THE TAX IMPOSED UNDER SECTION ONE-HUNDRED EIGHTY-SIX-A OF THE TAX LAW. § 2. Section 66 of the rural electric cooperative law, as amended by chapter 888 of the laws of 1983, is amended to read as follows: § 66. License fee in lieu of all franchise, excise, income, corpo- ration and sales and compensating use taxes. Each cooperative and foreign corporation doing business in this state pursuant to this chap- ter shall pay annually, on or before the first day of July, to the state tax commission, a fee of ten dollars, but shall be exempt from all other franchise, excise, income, corporation and sales and compensating use taxes whatsoever. The exemption from the sales and compensating use taxes provided by this section shall not apply to the taxes imposed pursuant to section eleven hundred seven or eleven hundred eight of the tax law. Nothing contained in this section shall be deemed to exempt such corporations from collecting and paying over sales and compensating use taxes on retail sales of tangible personal property and services made by such corporations to purchasers required to pay such taxes imposed pursuant to article twenty-eight or authorized pursuant to the authority of article twenty-nine of the tax law. SUCH ANNUAL FEE SHALL NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY. § 3. This act shall take effect immediately. PART U Section 1. Paragraph (e) of subdivision 26 of section 210-B of the tax law, as amended by section 2 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (e) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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 A. 2009--B 39 eligible for a credit under this subdivision for an additional two calendar years. § 2. Paragraph 5 of subsection (oo) of section 606 of the tax law, as amended by section 1 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (5) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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 subsection for an additional two calen- dar years. § 3. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as amended by section 3 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (5) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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. Subparagraph (A) of paragraph 1 of subsection (oo) of section 606 of the tax law, as amended by section 1 of part RR of chapter 59 of the laws of 2018, is amended and two new paragraphs 6 and 7 are added 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-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, AND ONE HUNDRED FIFTY PERCENT OF THE AMOUNT OF CRED- IT ALLOWED THE TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE THAT IS A SMALL PROJECT, under 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- 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 A. 2009--B 40 certified historic structure under 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 thou- sand dollars. (6)(A) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS SUBSECTION MAY TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY, WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITH RESPECT TO THE REHABIL- ITATED HISTORIC BUILDING MAY BE ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER PERSON OR ENTITY OWNS NO INTEREST IN THE REHABILITATED HISTORIC BUILDING OR IN AN ENTITY WITH AN OWNERSHIP INTEREST IN THE REHABILITATED HISTORIC BUILDING. TRANSFEREES SHALL BE ENTITLED TO APPLY TRANSFERRED CREDIT TO A TAX IMPOSED UNDER ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE OF THIS CHAPTER, 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 REHABILITATED HISTORIC BUILDING IN THE PROJECT; (II) THE DATE SUCH REHABILITATED HISTORIC BUILDING WAS PLACED INTO SERVICE; (III) THE FIVE YEAR COMPLI- ANCE 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. (C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED- IT PURSUANT TO THIS SUBSECTION AND SEEKING TO TRANSFER THE CREDIT FILES A TRANSFER STATEMENT WITH THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION PRIOR TO THE TRANSFER AND HE OR SHE 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 TRANSFER STATEMENT. THE STATEMENT SHALL ALSO CONTAIN SUCH OTHER INFORMATION AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION MAY REQUIRE. AFTER REVIEWING THE TRANSFER CONTRACT AND THE TRANSFER STATEMENT, THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION SHALL APPROVE OR DENY THE TRANSFER AS PROVIDED IN THIS SUBSECTION. IF THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION APPROVES THE TRANSFER, HE OR SHE SHALL ISSUE AN APPROVAL STATEMENT THAT PROVIDES THE NAME OF THE TRANSFEROR AND TRANSFEREE, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFOR- MATION AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA- TION AND THE COMMISSIONER DEEM NECESSARY. A COPY OF THE STATEMENT APPROVED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA- TION MUST BE ATTACHED TO THE TRANSFEREE'S TAX RETURN. IF THE COMMISSION- ER OF PARKS, RECREATION AND HISTORIC PRESERVATION DENIES THE TRANSFER, HE OR SHE SHALL PROVIDE THE TAXPAYER A WRITTEN DETERMINATION FOR SUCH DENIAL. THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION, IN CONSULTATION WITH THE COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCE- DURES AND STANDARDS DEEMED NECESSARY FOR THE TRANSFERABILITY OF THE REHABILITATION TAX CREDIT. (D) THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION SHALL FORWARD COPIES OF ALL TRANSFER STATEMENTS AND ATTACHMENTS THERETO AND APPROVAL STATEMENTS TO THE DEPARTMENT WITHIN THIRTY DAYS AFTER THE A. 2009--B 41 TRANSFER IS APPROVED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION. (E) 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. (7) FOR PURPOSES OF THIS SUBSECTION THE TERM "SMALL PROJECT" MEANS QUALIFIED REHABILITATION EXPENDITURES TOTALING FIVE MILLION DOLLARS OR LESS. § 5. Subparagraph (A) of paragraph 5 of subsection (pp) of section 606 of the tax law, as added by chapter 547 of the laws of 2006, clause (iv) as amended by chapter 239 of the laws of 2009, is amended to read as follows: (A) The term "qualified historic home" means, for purposes of this subsection, a certified historic structure located within New York state: (i) which has been substantially rehabilitated, (ii) which, or any portion of which, is owned, in whole or part, by the taxpayer, (iii) in which the taxpayer resides during the taxable year in which the taxpayer is allowed a credit under this subsection, and (iv) (1) which is in whole or in part a targeted area residence within the meaning of section 143(j) of the internal revenue code; or (2) is located within a census tract which is identified as being at or below one hundred percent of the state median family income in the most recent federal census; OR (3) WHICH IS LOCATED IN A CITY WITH A POPULATION OF LESS THAN ONE MILLION WITH A POVERTY RATE GREATER THAN FIFTEEN PERCENT, ROUNDED TO THE NEAREST WHOLE NUMBER, IN THE TWO THOUSAND SEVENTEEN AMER- ICAN COMMUNITY SURVEY. § 6. Subparagraph (i) of paragraph (a) of subdivision 26 of section 210-B of the tax law, as amended by section 2 of part RR of chapter 59 of the laws of 2018, is amended and two new paragraphs (f) and (g) are added to read as follows: (i) For taxable years beginning on or after January first, two thou- sand ten, and before January first, two thousand 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 for the same taxable year with respect to a certified historic structure, AND ONE HUNDRED FIFTY PERCENT OF THE AMOUNT OF CREDIT ALLOWED THE TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE THAT IS A SMALL PROJECT, under 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. (F)(1) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS SUBDIVISION MAY TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY, WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITH RESPECT TO THE REHABIL- ITATED HISTORIC BUILDING MAY BE ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER PERSON OR ENTITY OWNS NO INTEREST IN THE REHABILITATED HISTORIC BUILDING OR IN AN ENTITY WITH AN OWNERSHIP INTEREST IN THE REHABILITATED HISTORIC BUILDING. TRANSFEREES SHALL BE ENTITLED TO APPLY TRANSFERRED CREDIT TO A TAX IMPOSED UNDER ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE OF THIS CHAPTER, PROVIDED ALL REQUIREMENTS FOR CLAIMING THE CREDIT ARE A. 2009--B 42 MET. A TRANSFEREE MAY NOT TRANSFER ANY CREDIT, OR PORTION THEREOF, ACQUIRED BY TRANSFER. (2) 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 REHABILITATED HISTORIC BUILDING IN THE PROJECT; (II) THE DATE SUCH REHABILITATED HISTORIC BUILDING WAS PLACED INTO SERVICE; (III) THE FIVE YEAR COMPLI- ANCE 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. (3) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED- IT PURSUANT TO THIS SUBDIVISION AND SEEKING TO TRANSFER THE CREDIT FILES A TRANSFER STATEMENT WITH THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION PRIOR TO THE TRANSFER AND HE OR SHE 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 TRANSFER STATEMENT. THE STATEMENT SHALL ALSO CONTAIN SUCH OTHER INFORMATION AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION MAY REQUIRE. AFTER REVIEWING THE TRANSFER CONTRACT AND THE TRANSFER STATEMENT, THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION SHALL APPROVE OR DENY THE TRANSFER AS PROVIDED IN THIS SUBDIVISION. IF THE COMMISSIONER OF PARKS, RECRE- ATION AND HISTORIC PRESERVATION APPROVES THE TRANSFER, HE OR SHE SHALL ISSUE AN APPROVAL STATEMENT THAT PROVIDES THE NAME OF THE TRANSFEROR AND TRANSFEREE, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFOR- MATION AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA- TION AND THE COMMISSIONER DEEM NECESSARY. A COPY OF THE STATEMENT APPROVED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA- TION MUST BE ATTACHED TO THE TRANSFEREE'S TAX RETURN. IF THE COMMISSION- ER OF PARKS, RECREATION AND HISTORIC PRESERVATION DENIES THE TRANSFER, HE OR SHE SHALL PROVIDE THE TAXPAYER A WRITTEN DETERMINATION FOR SUCH DENIAL. THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION, IN CONSULTATION WITH THE COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCE- DURES AND STANDARDS DEEMED NECESSARY FOR THE TRANSFERABILITY OF THE REHABILITATION TAX CREDIT. (4) THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION SHALL FORWARD COPIES OF ALL TRANSFER STATEMENTS AND ATTACHMENTS THERETO AND APPROVAL STATEMENTS TO THE DEPARTMENT WITHIN THIRTY DAYS AFTER THE TRANSFER IS APPROVED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION. (5) 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. (G) FOR PURPOSES OF THIS SUBDIVISION "SMALL PROJECT" MEANS QUALIFIED REHABILITATION EXPENDITURES TOTALING FIVE MILLION DOLLARS OR LESS. § 7. Subparagraph (A) of paragraph 1 of subdivision (y) of section 1511 of the tax law, as amended by section 3 of part RR of chapter 59 of the laws of 2018, is amended and two new paragraphs 6 and 7 are added 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-five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax A. 2009--B 43 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, AND ONE HUNDRED FIFTY PERCENT OF THE AMOUNT OF CRED- IT ALLOWED THE TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE THAT IS A SMALL PROJECT, under 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- 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 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. (6)(A) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS SUBDIVISION MAY TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY, WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITH RESPECT TO THE REHABIL- ITATED HISTORIC BUILDING MAY BE ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER PERSON OR ENTITY OWNS NO INTEREST IN THE REHABILITATED HISTORIC BUILDING OR IN AN ENTITY WITH AN OWNERSHIP INTEREST IN THE REHABILITATED HISTORIC BUILDING. TRANSFEREES SHALL BE ENTITLED TO APPLY TRANSFERRED CREDIT TO A TAX IMPOSED UNDER ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE OF THIS CHAPTER, 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 REHABILITATED HISTORIC BUILDING IN THE PROJECT; (II) THE DATE SUCH REHABILITATED HISTORIC BUILDING WAS PLACED INTO SERVICE; (III) THE FIVE YEAR COMPLI- ANCE 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. (C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED- IT PURSUANT TO THIS SUBDIVISION AND SEEKING TO TRANSFER THE CREDIT FILES A TRANSFER STATEMENT WITH THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION PRIOR TO THE TRANSFER AND HE OR SHE 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 TRANSFER STATEMENT. THE STATEMENT SHALL ALSO CONTAIN SUCH OTHER INFORMATION AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION MAY REQUIRE. AFTER REVIEWING THE TRANSFER CONTRACT AND THE TRANSFER STATEMENT, THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION SHALL APPROVE OR DENY THE TRANSFER AS PROVIDED IN THIS SUBDIVISION. IF THE COMMISSIONER OF PARKS, RECRE- ATION AND HISTORIC PRESERVATION APPROVES THE TRANSFER, HE OR SHE SHALL ISSUE AN APPROVAL STATEMENT THAT PROVIDES THE NAME OF THE TRANSFEROR AND TRANSFEREE, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFOR- A. 2009--B 44 MATION AS THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA- TION AND THE COMMISSIONER DEEM NECESSARY. A COPY OF THE STATEMENT APPROVED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA- TION MUST BE ATTACHED TO THE TRANSFEREE'S TAX RETURN. IF THE COMMISSION- ER OF PARKS, RECREATION AND HISTORIC PRESERVATION DENIES THE TRANSFER, HE OR SHE SHALL PROVIDE THE TAXPAYER A WRITTEN DETERMINATION FOR SUCH DENIAL. THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION, IN CONSULTATION WITH THE COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCE- DURES AND STANDARDS DEEMED NECESSARY FOR THE TRANSFERABILITY OF THE REHABILITATION TAX CREDIT. (D) THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION SHALL FORWARD COPIES OF ALL TRANSFER STATEMENTS AND ATTACHMENTS THERETO AND APPROVAL STATEMENTS TO THE DEPARTMENT WITHIN THIRTY DAYS AFTER THE TRANSFER IS APPROVED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION. (E) 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. (7) FOR PURPOSES OF THIS SUBDIVISION "SMALL PROJECT" MEANS QUALIFIED REHABILITATION EXPENDITURES TOTALING FIVE MILLION DOLLARS OR LESS. § 8. This act shall take effect immediately, and shall apply to taxa- ble years beginning on or after January 1, 2020. PART V Section 1. Subdivision (jj) of section 1115 of the tax law, as added by section 1 of part UU of chapter 59 of the laws of 2015, is amended to read as follows: (jj) Tangible personal property or services otherwise taxable under this article sold to a related person shall not be subject to the taxes imposed by section eleven hundred five of this article or the compensat- ing use tax imposed under section eleven hundred ten of this article where the purchaser can show that the following conditions have been met to the extent they are applicable: (1)(i) the vendor and the purchaser are referenced as either a "covered company" as described in section 243.2(f) or a "material entity" as described in section 243.2(l) of the Code of Federal Regulations in a resolution plan that has been submitted to an agency of the United States for the purpose of satisfying subpara- graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- Frank Wall Street Reform and Consumer Protection Act (the "Act") or any successor law, or (ii) the vendor and the purchaser are separate legal entities pursuant to a divestiture directed pursuant to subparagraph 5 of paragraph (d) of section one hundred sixty-five of such act or any successor law; (2) the sale would not have occurred between such related entities were it not for such resolution plan or divestiture; and (3) in acquiring such property or services, the vendor did not claim an exemption from the tax imposed by this state or another state based on the vendor's intent to resell such services or property. A person is related to another person for purposes of this subdivision if the person bears a relationship to such person described in section two hundred sixty-seven of the internal revenue code. The exemption provided by this subdivision shall not apply to sales made, services rendered, or uses occurring after June thirtieth, two thousand [nineteen] TWENTY-ONE, except with respect to sales made, services rendered, or uses occurring pursuant to binding contracts entered into on or before such date; but A. 2009--B 45 in no case shall such exemption apply after June thirtieth, two thousand twenty-four. § 2. This act shall take effect immediately. PART W Section 1. The mental hygiene law is amended by adding a new section 32.38 to read as follows: § 32.38 THE RECOVERY TAX CREDIT PROGRAM. (A) AUTHORIZATION. THE COMMISSIONER IS AUTHORIZED TO AND SHALL ESTAB- LISH AND ADMINISTER THE RECOVERY TAX CREDIT PROGRAM TO PROVIDE TAX INCENTIVES TO CERTIFIED EMPLOYERS FOR EMPLOYING ELIGIBLE INDIVIDUALS IN RECOVERY FROM A SUBSTANCE USE DISORDER IN PART-TIME AND FULL-TIME POSI- TIONS IN THE STATE. THE COMMISSIONER IS AUTHORIZED TO ALLOCATE UP TO TWO MILLION DOLLARS OF TAX CREDITS ANNUALLY FOR THE RECOVERY TAX CREDIT PROGRAM BEGINNING IN THE YEAR TWO THOUSAND TWENTY. (B) DEFINITIONS. 1. THE TERM "CERTIFIED EMPLOYER" MEANS AN EMPLOYER THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER AFTER THE COMMISSIONER HAS DETERMINED THAT THE EMPLOYER: (I) PROVIDES A RECOVERY SUPPORTIVE ENVIRONMENT FOR THEIR EMPLOYEES EVIDENCED BY A FORMAL WORKING RELATIONSHIP WITH A LOCAL RECOVERY OR TREATMENT PROVIDER CERTIFIED BY THE OFFICE TO PROVIDE SUPPORT FOR EMPLOYERS INCLUDING ANY NECESSARY ASSISTANCE IN THE HIRING PROCESS OF ELIGIBLE INDIVIDUALS IN RECOVERY FROM A SUBSTANCE USE DISORDER AND TRAINING FOR EMPLOYERS OR SUPERVISORS; AND (II) FULFILLS THE ELIGIBILITY CRITERIA SET FORTH IN THIS SECTION AND BY THE COMMISSIONER TO PARTICIPATE IN THE RECOVERY TAX CREDIT PROGRAM ESTABLISHED IN THIS SECTION. 2. THE TERM "ELIGIBLE INDIVIDUAL" MEANS AN INDIVIDUAL WITH A SUBSTANCE USE DISORDER AS THAT TERM IS DEFINED IN SECTION 1.03 OF THIS CHAPTER WHO IS IN A STATE OF WELLNESS WHERE THERE IS AN ABATEMENT OF SIGNS AND SYMP- TOMS THAT CHARACTERIZE ACTIVE ADDICTION AND HAS DEMONSTRATED TO THE QUALIFIED EMPLOYER'S SATISFACTION, PURSUANT TO GUIDELINES ESTABLISHED BY THE OFFICE, THAT HE OR SHE HAS COMPLETED A COURSE OF TREATMENT OR IS CURRENTLY IN RECEIPT OF TREATMENT FOR SUCH SUBSTANCE USE DISORDER. A RELAPSE IN AN INDIVIDUAL'S STATE OF WELLNESS SHALL NOT MAKE THE INDIVID- UAL INELIGIBLE, SO LONG AS SUCH INDIVIDUAL SHOWS A CONTINUED COMMITMENT TO RECOVERY THAT ALIGNS WITH AN INDIVIDUAL'S RELAPSE PREVENTION PLAN, DISCHARGE PLAN, AND/OR RECOVERY PLAN. (C) APPLICATION AND APPROVAL PROCESS. 1. TO PARTICIPATE IN THE PROGRAM ESTABLISHED BY THIS SECTION, AN EMPLOYER MUST, IN A FORM PRESCRIBED BY THE COMMISSIONER, APPLY ANNUALLY TO THE OFFICE BY JANUARY FIFTEENTH TO CLAIM CREDIT BASED ON ELIGIBLE INDIVIDUALS EMPLOYED DURING THE PRECEDING CALENDAR YEAR. AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (I) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES. HOWEVER, ANY INFORMATION SHARED BECAUSE OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW. (II) ALLOW THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AND ITS AGENTS ACCESS TO LIMITED AND SPECIFIC INFORMATION NECESSARY TO MONI- TOR COMPLIANCE WITH PROGRAM ELIGIBILITY REQUIREMENTS. SUCH INFORMATION SHALL BE CONFIDENTIAL AND ONLY USED FOR THE STATED PURPOSE OF THIS SECTION. (III) DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED PROGRAM ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY, INCLUDING THE A. 2009--B 46 NUMBER OF HOURS WORKED BY ANY ELIGIBLE INDIVIDUAL, FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. 2. (I) AFTER REVIEWING THE APPLICATION AND FINDING IT SUFFICIENT, THE COMMISSIONER SHALL ISSUE A CERTIFICATE OF TAX CREDIT BY MARCH THIRTY- FIRST. SUCH CERTIFICATE SHALL INCLUDE, BUT NOT BE LIMITED TO, THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE CERTIFIED EMPLOYER, THE AMOUNT OF CREDIT THAT THE CERTIFIED EMPLOYER MAY CLAIM, AND ANY OTHER INFORMA- TION THE COMMISSIONER OF TAXATION AND FINANCE DETERMINES IS NECESSARY. (II) IN DETERMINING THE AMOUNT OF CREDIT THAT ANY EMPLOYER MAY CLAIM, THE COMMISSIONER SHALL REVIEW ALL CLAIMS SUBMITTED FOR CREDIT BY EMPLOY- ERS AND, TO THE EXTENT THAT THE TOTAL AMOUNT CLAIMED BY EMPLOYERS EXCEEDS THE AMOUNT ALLOCATED FOR THE PROGRAM IN THAT CALENDAR YEAR, SHALL ISSUE CREDITS ON A PRO-RATA BASIS CORRESPONDING TO EACH CLAIMANT'S SHARE OF THE TOTAL CLAIMED AMOUNT. (D) ELIGIBILITY. A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CRED- IT EQUAL TO THE PRODUCT OF ONE DOLLAR AND THE NUMBER OF HOURS WORKED BY EACH ELIGIBLE INDIVIDUAL DURING SUCH ELIGIBLE INDIVIDUAL'S PERIOD OF EMPLOYMENT. THE CREDIT SHALL NOT BE ALLOWED UNLESS THE ELIGIBLE INDI- VIDUAL HAS WORKED IN STATE FOR A MINIMUM OF FIVE HUNDRED HOURS FOR THE CERTIFIED EMPLOYER, AND THE CREDIT CANNOT EXCEED TWO THOUSAND DOLLARS PER ELIGIBLE INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYER IN THE STATE. THE CERTIFIED EMPLOYER MAY CLAIM A CREDIT FOR EACH ELIGIBLE EMPLOYEE STARTING ON THE DAY THE EMPLOYEE IS HIRED AND ENDS ON DECEMBER THIRTY- FIRST OF THE IMMEDIATELY SUCCEEDING CALENDAR YEAR OR THE LAST DAY OF THE EMPLOYEE'S EMPLOYMENT BY THE CERTIFIED EMPLOYER, WHICHEVER COMES FIRST. IF AN EMPLOYEE HAS WORKED IN EXCESS OF FIVE HUNDRED HOURS BETWEEN THE DATE OF HIRING AND DECEMBER THIRTY-FIRST OF THAT YEAR, AN EMPLOYER CAN ELECT TO COMPUTE AND CLAIM A CREDIT FOR SUCH EMPLOYEE IN THAT YEAR BASED ON THE HOURS WORKED BY DECEMBER THIRTY-FIRST. ALTERNATIVELY, THE EMPLOY- ER MAY ELECT TO INCLUDE SUCH INDIVIDUAL IN THE COMPUTATION OF THE CREDIT IN THE YEAR IMMEDIATELY SUCCEEDING THE YEAR IN WHICH THE EMPLOYEE WAS HIRED. IN SUCH CASE, THE CREDIT SHALL BE COMPUTED ON THE BASIS OF ALL HOURS WORKED BY SUCH ELIGIBLE INDIVIDUAL FROM THE DATE OF HIRE TO THE EARLIER OF THE LAST DAY OF EMPLOYMENT OR DECEMBER THIRTY-FIRST OF THE SUCCEEDING YEAR. HOWEVER, IN NO EVENT MAY AN EMPLOYEE GENERATE CREDIT FOR HOURS WORKED IN EXCESS OF TWO THOUSAND HOURS. AN EMPLOYER MAY CLAIM CREDIT ONLY ONCE WITH RESPECT TO ANY ELIGIBLE INDIVIDUAL AND MAY NOT AGGREGATE HOURS OF TWO OR MORE EMPLOYEES TO REACH THE MINIMUM NUMBER OF HOURS. (E) DUTIES OF THE COMMISSIONER. THE COMMISSIONER SHALL ANNUALLY PROVIDE TO THE COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE INFORMATION ABOUT THE PROGRAM INCLUDING, BUT NOT LIMITED TO, THE NUMBER OF CERTIFIED EMPLOYERS THEN PARTICIPATING IN THE PROGRAM, UNIQUE IDENTI- FYING INFORMATION FOR EACH CERTIFIED EMPLOYER, THE NUMBER OF ELIGIBLE INDIVIDUALS EMPLOYED BY EACH CERTIFIED EMPLOYER, UNIQUE IDENTIFYING INFORMATION FOR EACH ELIGIBLE INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYERS, THE NUMBER OF HOURS WORKED BY SUCH ELIGIBLE INDIVIDUALS, THE TOTAL DOLLAR AMOUNT OF CLAIMS FOR CREDIT, AND THE DOLLAR AMOUNT OF CRED- IT GRANTED TO EACH CERTIFIED EMPLOYER. (F) CERTIFIED EMPLOYER'S TAXABLE YEAR. IF THE CERTIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE CERTIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CRED- A. 2009--B 47 IT ON THE RETURN FOR THE FISCAL YEAR THAT INCLUDES THE LAST DAY OF THE CALENDAR YEAR COVERED BY THE CERTIFICATE OF TAX CREDIT. (G) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THE TAX LAW: 1. ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53. 2. ARTICLE 22: SECTION 606, SUBSECTION (JJJ). 3. ARTICLE 33: SECTION 1511, SUBDIVISION (DD). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: 53. RECOVERY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A CERTIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP OR MEMBER OF A LIMITED LIABILITY COMPANY THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO THAT AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON. (C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 3. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows: (XLIV) RECOVERY TAX CREDIT UNDER AMOUNT OF CREDIT UNDER SUBSECTION (JJJ) SUBDIVISION FIFTY-THREE 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) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. 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 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS A. 2009--B 48 PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABIL- ITY COMPANY OR S CORPORATION. (2) OVERPAYMENT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXA- BLE 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, NO INTEREST WILL BE PAID THEREON. (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 5. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP OR MEMBER OF A LIMITED LIABILITY COMPANY THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY. (2) 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 MINIMUM TAX FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE OR BY SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR 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, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 6. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2020 and shall apply to those eligible individuals hired after this act shall take effect. PART X Intentionally Omitted PART Y Section 1. The tax law is amended by adding a new section 44 to read as follows: A. 2009--B 49 § 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 A. 2009--B 50 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: A. 2009--B 51 [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, 2019 and before January 1, 2020, (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, 2019; 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 Z Section 1. Paragraph 3 of subdivision (a) and paragraphs 2 and 5 of subdivision (c) of section 43 of the tax law, as added by section 7 of part K of chapter 59 of the laws of 2017, are amended to read as follows: (3) The total amount of credit allowable to a qualified life sciences company, or, if the life sciences company is properly included or required to be included in a combined report, to the combined group, taken in the aggregate, shall not exceed five hundred thousand dollars in any taxable year. If the [life sciences company] TAXPAYER is a part- ner in a partnership THAT IS A LIFE SCIENCES COMPANY or A shareholder of a New York S corporation THAT IS A LIFE SCIENCES COMPANY, then the total amount of credit allowable shall be applied at the entity level, so that the total amount of credit allowable to all the partners or shareholders of each such entity, taken in the aggregate, does not exceed five hundred thousand dollars in any taxable year. (2) "New business" means any business that qualifies as a new business under either paragraph (f) of subdivision one of section two hundred ten-B or paragraph ten of subsection [one] (A) of section six hundred six of this chapter. A. 2009--B 52 (5) "Related person" means a related person as defined in subparagraph [(c)] (C) of paragraph three of subsection (b) of section 465 of the internal revenue code. For this purpose, a "related person" shall include an entity that would have qualified as a "related person" if it had not been dissolved, liquidated, merged with another entity or other- wise ceased to exist or operate. § 2. Subdivision 5 of section 209 of the tax law, as amended by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 5. For any taxable year of a real estate investment trust as defined in section eight hundred fifty-six of the internal revenue code in which such trust is subject to federal income taxation under section eight hundred fifty-seven of such code, such trust shall be subject to a tax computed under either paragraph (a) or (d) of subdivision one of section two hundred ten of this chapter, whichever is greater, and shall not be subject to any tax under article thirty-three of this chapter except for a captive REIT required to file a combined return under subdivision (f) of section fifteen hundred fifteen of this chapter. In the case of such a real estate investment trust, including a captive REIT as defined in section two of this chapter, the term "entire net income" means "real estate investment trust taxable income" as defined in paragraph two of subdivision (b) of section eight hundred fifty-seven (as modified by section eight hundred fifty-eight) of the internal revenue code [plus the amount taxable under paragraph three of subdivision (b) of section eight hundred fifty-seven of such code], subject to the modifications required by subdivision nine of section two hundred eight of this arti- cle. § 3. Paragraph (a) of subdivision 8 of section 211 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (a) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for any tax commissioner, any officer or employee of the department [of taxation and finance], or any person who, pursuant to this section, is permitted to inspect any report, or to whom any information contained in any 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 report filed pursuant to this article, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report under this article. The officers charged with the custody of such 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 or 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 or the commissioner is a party or a claimant, or on behalf of any party to any action or proceed- ing under the provisions of this article when the reports or 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 reports or of the facts shown thereby as are pertinent to the action or proceeding, and no more. The commissioner may, nevertheless, publish a copy or a summary of any determination or decision rendered after the formal hearing provided for in section one thousand eighty-nine of this chapter. Nothing herein shall be construed to prohibit the delivery to a corporation or its duly authorized repre- A. 2009--B 53 sentative of a copy of any report filed by it, nor to prohibit the publication of statistics so classified as to prevent the identification of particular reports and the items thereof; or the publication of delinquent lists showing the names of taxpayers who have failed to pay their taxes at the time and in the manner provided by section two hundred thirteen of this chapter together with any relevant information which in the opinion of the commissioner may assist in the collection of such delinquent taxes; or the inspection by the attorney general or other legal representatives of the state of the report of any corpo- ration which shall bring action to set aside or review the tax based thereon, or against which an action or proceeding under this chapter has been recommended by the commissioner of taxation and finance or the attorney general or has been instituted; or the inspection of the reports of any corporation 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 tax paid by such corporation under this article[; and nothing in this chapter shall be construed to prohibit the publication of the issuer's allocation percentage of any corporation, as such term "issuer's allocation percentage" is defined in subparagraph one of paragraph (b) of subdivision three of section two hundred ten of this article]. § 4. Subdivision (a) of section 213-b of the tax law, as amended by section 10 of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (a) First installments for certain taxpayers.--In privilege periods of twelve months ending at any time during the calendar year nineteen hundred seventy and thereafter, every taxpayer subject to the tax imposed by section two hundred nine of this chapter must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, for taxable years beginning before January first, two thousand sixteen, and must pay on or before the fifteenth day of the third month of such priv- ilege periods, for taxable years beginning on or after January first, two thousand sixteen, an amount equal to (i) twenty-five percent of the second preceding year's tax if the second preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the second preceding year's tax if the second preceding year's tax exceeded one hundred thousand dollars. If the second preceding year's tax under section two hundred nine of this chapter exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section two hundred nine-B of this chapter, the taxpayer must also pay with the tax surcharge report required to be filed for the second preceding privilege period, or with an application for extension of the time for filing the report, for taxable years beginning before January first, two thousand sixteen, and must pay on or before the fifteenth day of the third month of such privilege periods, for taxable years beginning on or after January first, two thousand sixteen, an amount equal to (i) twenty-five percent of the tax surcharge imposed for the second preceding year if the second preceding year's tax was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the second preceding year if the second preceding year's tax exceeded one hundred thousand dollars. Provided, however, that every taxpayer that is [an] A NEW YORK S corpo- ration must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, an amount equal to (i) twenty-five percent of the A. 2009--B 54 preceding year's tax if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the preceding year's tax if the preceding year's tax exceeded one hundred thousand dollars. [If the preceding year's tax under section two hundred nine of this article exceeded one thousand dollars and such taxpayer that is an S corporation is subject to the tax surcharge imposed by section two hundred nine-B of this article, the taxpayer must also pay with the tax surcharge report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, an amount equal to (i) twenty-five percent of the tax surcharge imposed for the preceding year if the preceding year's tax was equal equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the preceding year if the preceding year's tax exceeded one hundred thousand dollars.] § 5. Subdivision (e) of section 213-b of the tax law, as amended by chapter 166 of the laws of 1991, the subdivision heading as amended by section 10-b of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (e) Interest on certain installments based on the second preceding year's tax.--Notwithstanding the provisions of section one thousand eighty-eight of this chapter or of section sixteen of the state finance law, if an amount paid pursuant to subdivision (a) exceeds the tax or tax surcharge, respectively, shown on the report required to be filed by the taxpayer for the privilege period during which the amount was paid, interest shall be allowed and paid on the amount by which the amount so paid pursuant to such subdivision exceeds such tax or tax surcharge. In the case of amounts so paid pursuant to subdivision (a), such interest shall be allowed and paid at the overpayment rate set by the commission- er of taxation and finance pursuant to section one thousand ninety-six of this chapter, or if no rate is set, at the rate of six per centum per annum from the date of payment of the amount so paid pursuant to such subdivision to the fifteenth day of the [third] FOURTH month following the close of the taxable year, provided, however, that no interest shall be allowed or paid under this subdivision if the amount thereof is less than one dollar or if such interest becomes payable solely because of a carryback of a net operating loss in a subsequent privilege period. § 6. Subdivision (a) of section 1503 of the tax law, as amended by chapter 817 of the laws of 1987, is amended to read as follows: (a) The entire net income of a taxpayer shall be its total net income from all sources which shall be presumably the same as the life insur- ance company taxable income (which shall include, in the case of a stock life insurance company [which] THAT has A BALANCE, AS DETERMINED AS OF THE CLOSE OF SUCH COMPANY'S LAST TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, IN an existing policyholders surplus account, AS SUCH TERM IS DEFINED IN SECTION 815 OF THE INTERNAL REVENUE CODE AS SUCH SECTION WAS IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount of [direct and indirect distributions during the taxable year to shareholders from such account] ONE-EIGHTH OF SUCH BALANCE), taxable income of a partnership or taxable income, but not alternative minimum taxable income, as the case may be, which the taxpayer is required to report to the United States treasury department, for the taxable year or, in the case of a corporation exempt from federal income tax (other than the tax on unrelated business taxa- ble income imposed under section 511 of the internal revenue code) but not exempt from tax under section fifteen hundred one, the taxable A. 2009--B 55 income which such taxpayer would have been required to report but for such exemption, except as hereinafter provided. § 7. Intentionally omitted. § 8. Section 2 of chapter 369 of the laws of 2018 amending the tax law relating to unrelated business taxable income of a taxpayer, is amended to read as follows: § 2. This act shall take effect immediately and shall apply to [taxa- ble years beginning] AMOUNTS PAID OR INCURRED on and after January 1, 2018. § 9. Paragraph (b) of subdivision 8 of section 11-602 of the adminis- trative code of the city of New York is amended by adding a new subpara- graph 20 to read as follows: (20) THE AMOUNT OF ANY FEDERAL DEDUCTION THAT WOULD HAVE BEEN ALLOWED PURSUANT TO SECTION 250(A)(1)(A) OF THE INTERNAL REVENUE CODE IF THE TAXPAYER HAD NOT MADE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER ONE OF THE INTERNAL REVENUE CODE. § 10. Clause (i) of subparagraph 1 of paragraph (b) of subdivision 3 of section 11-604 of the administrative code of the city of New York, as amended by chapter 241 of the laws of 1989, is amended to read as follows: (i) In the case of an issuer or obligor subject to tax under this subchapter, SUBCHAPTER THREE-A or subchapter four of this chapter, or subject to tax as a utility corporation under chapter eleven of this title, the issuer's allocation percentage shall be the percentage of the appropriate measure (as defined hereinafter) which is required to be allocated within the city on the report or reports, if any, required of the issuer or obligor under this title for the preceding year. The appropriate measure referred to in the preceding sentence shall be: in the case of an issuer or obligor subject to this subchapter OR SUBCHAP- TER THREE-A, entire capital; in the case of an issuer or obligor subject to subchapter four of this chapter, issued capital stock; in the case of an issuer or obligor subject to chapter eleven of this title as a utili- ty corporation, gross income. § 11. This act shall take effect immediately, provided, however, that: (i) section one of this act shall be deemed to have been in full force and effect on and after the effective date of part K of chapter 59 of the laws of 2017; (ii) sections two and six of this act shall be deemed to have been in full force and effect on and after the effective date of part KK of chapter 59 of the laws of 2018; provided, however, that section six of this act shall apply to taxable years beginning on or after January 1, 2018 through taxable years beginning on or before January 1, 2025; (iii) section three of this act shall be deemed to have been in full force and effect on and after the effective date of part A of chapter 59 of the laws of 2014; (iv) sections four and five of this act shall be deemed to have been in full force and effect on and after the effective date of part Q of chapter 60 of the laws of 2016; (v) section eight of this act shall be deemed to have been in full force and effect on and after the effective date of chapter 369 of the laws of 2018; and (vi) section nine of this act shall apply to taxable years beginning on and after January 1, 2018. PART AA A. 2009--B 56 Intentionally Omitted PART BB Intentionally Omitted PART CC Intentionally Omitted PART DD Section 1. This Part enacts into law legislation relating to the office of gaming inspector general, the thoroughbred breeding and devel- opment fund, the Harry M. Zweig memorial fund and prize payment amounts and revenue distributions of lottery game sales. Each component is whol- ly contained within a Subpart identified as Subparts A through D. 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 corresponding section of the Subpart in which it is found. Section three of this Part sets forth the general effective date of this Part. SUBPART A Section 1. Sections 1368, 1369, 1370, and 1371 of the racing, pari-mu- tuel wagering and breeding law are renumbered sections 130, 131, 132, and 133. § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and breeding law is REPEALED. § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 130. Establishment of the office of gaming inspector general. 1. There is hereby created within the commission the office of gaming inspector general. The head of the office shall be the gaming inspector general who shall be appointed by the governor by and with the advice and consent of the senate. The GAMING inspector general shall serve at the pleasure of the governor. The GAMING inspector general shall report directly to the governor. The person appointed as GAMING inspector general shall, upon his or her appointment, have not less than ten years professional experience in law, investigation, or auditing. The GAMING inspector general shall be compensated within the limits of funds avail- able therefor, provided, however, such salary shall be no less than the salaries of certain state officers holding the positions indicated in paragraph (a) of subdivision one of section one hundred sixty-nine of the executive law. 2. THE GAMING INSPECTOR GENERAL MAY NOT BE EMPLOYED WITH THE GAMING COMMISSION DURING THEIR EMPLOYMENT WITH THE OFFICE OR WITHIN TWO YEARS AFTER TERMINATING EMPLOYMENT WITH THE OFFICE. § 3-a. Subdivision 1 of section 131 of the racing, pari-mutuel wager- ing and breeding law, such section as renumbered by section one of this act, is renumbered subdivision 1-a. A. 2009--B 57 § 4. The section heading, opening paragraph and subdivisions 6 and 7 of section 131 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and such section as renumbered by section one of this act, are amended and two new subdivisions 1 and 8 are added to read as follows: [State gaming] GAMING inspector general; functions and duties. The [state] gaming inspector general shall have the following duties and responsibilities: 1. APPOINT SUCH DEPUTIES, DIRECTORS, ASSISTANTS AND OTHER OFFICERS AND EMPLOYEES AS MAY BE NEEDED FOR THE PERFORMANCE OF THEIR DUTIES AND MAY PRESCRIBE THEIR POWERS AND FIX THEIR COMPENSATION WITHIN THE AMOUNTS AVAILABLE THEREFOR; 6. recommend remedial action to prevent or eliminate corruption, fraud, criminal activity, conflicts of interest or abuse in the commis- sion; [and] 7. establish programs for training commission officers and employees [regarding] IN REGARD TO the prevention and elimination of corruption, fraud, criminal activity, conflicts of interest or abuse in the commis- sion[.]; AND 8. MAKE AN ANNUAL REPORT TO THE GOVERNOR, THE COMPTROLLER AND THE LEGISLATURE CONCERNING ITS WORK DURING THE PRECEDING YEAR, AND TO MAKE SUCH FURTHER INTERIM REPORTS TO THE GOVERNOR, THE COMPTROLLER OR THE LEGISLATURE AS THEY SHALL DEEM ADVISABLE OR REQUIRE. § 5. The opening paragraph of section 132 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and such section as renumbered by section one of this act, is amended to read as follows: The [state] gaming inspector general shall have the power to: § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 133. Responsibilities of the commission and its officers and employ- ees. 1. Every commission officer or employee shall report promptly to the [state] gaming inspector general any information concerning corruption, fraud, criminal activity, conflicts of interest or abuse by another state officer or employee relating to his or her office or employment, or by a person having business dealings with the commission relating to those dealings. The knowing failure of any officer or employee to so report shall be cause for removal from office or employ- ment or other appropriate penalty under this article. Any officer or employee who acts pursuant to this subdivision by reporting to the [state] gaming inspector general or other appropriate law enforcement official improper governmental action as defined in section seventy- five-b of the civil service law shall not be subject to dismissal, discipline or other adverse personnel action. 2. The commission chair shall advise the governor within ninety days of the issuance of a report by the [state] gaming inspector general as to the remedial action that the commission has taken in response to any recommendation for such action contained in such report. § 7. This act shall take effect immediately. SUBPART B Intentionally Omitted SUBPART C A. 2009--B 58 Intentionally Omitted SUBPART D Intentionally Omitted § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through D of this Part shall be as specifically set forth in the last section of such Subpart. PART EE Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision b of section 1612 of the tax law, subparagraph (ii) as amended by chap- ter 174 of the laws of 2013, the opening paragraph of subparagraph (ii) as separately amended by section 30 of chapter 174 of the laws of 2013, clause (F) of subparagraph (ii) as amended by section 1 of part PP of chapter 59 of the laws of 2017, clause (G) as amended by section 2 of part HH and clause (G-2) of subparagraph (ii) as added by section 1 of part DD of chapter 60 of the laws of 2016, clauses (G-1) and (I) of subparagraph (ii) as amended by chapter 175 of the laws of 2013, clause (H) of subparagraph (ii) as amended by section 1 of part TT of chapter 59 of the laws of 2018, clause (J) of subparagraph (ii) as added by section 2 of part I of chapter 61 of the laws of 2017 and subparagraph (iii) as separately amended by chapters 174 and 175 of the laws of 2013, are amended to read as follows: (ii) [less a vendor's fee the amount of which is to be paid for serv- ing as a lottery agent to the track operator of a vendor track or the operator of a resort facility or the operator of any other video lottery gaming facility authorized pursuant to section one thousand six hundred seventeen a of this article: (A) having fewer than one thousand one hundred video gaming machines, at a rate of thirty-five percent for the first fifty million dollars annually, twenty-eight percent for the next hundred million dollars annually, and twenty-five percent thereafter of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter; (B) having one thousand one hundred or more video gaming machines, at a rate of thirty-one percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter, except for such facility located in the county of Westchester, in which case the rate shall be thirty percent until March thirty-first, two thousand twelve. Notwithstanding the foregoing, not later than April first, two thou- sand twelve, the vendor fee shall become thirty-one percent and remain at that level thereafter; and except for Aqueduct racetrack, in which case the vendor fee shall be thirty-eight percent of the total revenue A. 2009--B 59 wagered at the vendor track after payout for prizes pursuant to this chapter; (C) notwithstanding clauses (A) and (B) of this subparagraph, when the vendor track is located in an area with a population of less than one million within the forty mile radius around such track, at a rate of thirty-nine percent for the first fifty million dollars annually, twen- ty-eight percent for the next hundred million dollars annually, and twenty-five percent thereafter of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter; (D) notwithstanding clauses (A), (B) and (C) of this subparagraph, when the vendor track is located within fifteen miles of a Native Ameri- can class III gaming facility at a rate of forty-one percent of the total revenue wagered at the vendor track after payout for prizes pursu- ant to this chapter; (E) notwithstanding clauses (A), (B), (C) and (D) of this subpara- graph, when a Native American class III gaming facility is established, after the effective date of this subparagraph, within fifteen miles of the vendor track, at a rate of forty-one percent of the total revenue wagered after payout for prizes pursuant to this chapter; (E-1) for purposes of this subdivision, the term "class III gaming" shall have the meaning defined in 25 U.S.C. § 2703(8). (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar- agraph, when a vendor track, is located in Sullivan county and within sixty miles from any gaming facility in a contiguous state such vendor fee shall, for a period of ten years commencing April first, two thou- sand eight, be at a rate of forty-one percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter, after which time such rate shall be as for all tracks in clause (C) of this subparagraph. (G)] 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. THE AMOUNT OF THE VENDOR'S FEE SHALL BE CALCULATED AS FOLLOWS: (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 ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, THE RATE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE AS FOLLOWS: (1) FORTY-THREE AND ONE-HALF PERCENT FOR A VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES BUT LESS THAN FIFTY MILES FROM A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW; (2) FORTY-NINE PERCENT FOR A VENDOR TACK LOCATED WITHIN FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW; (3) FIFTY-ONE PERCENT FOR VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES BUT LESS THAN FIFTY MILES FROM A NATIVE AMERICAN CLASS III GAMING FACIL- ITY AS DEFINED IN 25 U.S.C. §2703(8); (4) FIFTY-SIX PERCENT FOR A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C §2703(8); A. 2009--B 60 (C) WHEN A VIDEO LOTTERY FACILITY IS LOCATED AT AQUEDUCT RACETRACK, AT A RATE OF FIFTY PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAP- TER; (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. (III) (A) Notwithstanding any provision to the contrary, when a vendor track is located within regions one, two, or five of development zone two as defined by section thirteen hundred ten of the racing, pari-mutu- el wagering and breeding law, such vendor track shall receive an addi- tional commission at a rate equal to the percentage of revenue wagered at the vendor track after payout for prizes pursuant to this chapter, which percentage shall be one hundred, less the sum of the percentages of net revenue wagered at the vendor track retained by the commission for operation, administration, and procurement purposes; and the vendor's fee, marketing allowance and capital award paid to the vendor track pursuant to this chapter; and the effective tax rate paid on all gross gaming revenue paid by a gaming facility within the same region pursuant to section thirteen hundred fifty-one of the racing, pari-mutu- el wagering and breeding law, provided, however, such additional commis- sion shall be applied to revenue wagered at the vendor track after payout for prizes only while a gaming facility in the same region is open and operational pursuant to an operation certificate issued pursu- ant to section thirteen hundred thirty-one of the racing, pari-mutuel wagering and breeding law. The additional commission set forth in this clause shall be paid to the vendor track within sixty days after the conclusion of the state fiscal year based on the calculated percentage during the previous fiscal year. [(G-1) Notwithstanding clause (A) and (B) of this subparagraph, when a video lottery gaming facility is located in either the county of Nassau or Suffolk and is operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breed- ing law at a rate of thirty-five percent of the total revenue wagered at the vendor after payout for prizes pursuant to this chapter; (G-2)] (B) Notwithstanding any provision to the contrary, when a vendor track is located within region six of development zone two as defined by section thirteen hundred ten of the racing, pari-mutuel wagering and breeding law and is located within Ontario county, such vendor track shall receive an additional commission at a rate equal to the percentage of revenue wagered at the vendor track after payout for prizes pursuant to this chapter, which percentage shall be one hundred, less the sum of the percentages of net revenue wagered at the vendor track retained by the commission for operation, administration, and procurement purposes; and the vendor's fee, marketing allowance and capital award paid to the vendor track pursuant to this chapter; and the effective tax rate paid on all gross gaming revenue paid by a gaming facility within Seneca or Wayne counties pursuant to section thirteen hundred fifty-one of the racing, pari-mutuel wagering and breeding law, provided, however, such additional commission shall be applied to reven- ue wagered at the vendor track after payout for prizes only while a gaming facility in Seneca or Wayne counties is open and operational pursuant to an operation certificate issued pursuant to section thirteen A. 2009--B 61 hundred thirty-one of the racing, pari-mutuel wagering and breeding law. The additional commission set forth in this clause shall be paid to the vendor track within sixty days after the conclusion of the state fiscal year based on the calculated percentage during the previous fiscal year. [(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 the amount of any vendor's capital award that is not used during any one year period may be carried over into subsequent years ending before April first, two thousand nineteen. Any amount attributable to a capital expenditure approved prior to April first, two thousand nineteen and completed before April first, two thousand twenty-one; or approved prior to April first, two thousand twenty-three and completed before April first, two thousand twenty-five for a vendor track located west of State Route 14 from Sodus Point to the Pennsylvania border within New York, shall be eligible to receive the vendor's capital award. In the event that a vendor track's capital expenditures, approved by the gaming commission prior to April first, two thousand nineteen and completed prior to April first, two thousand twenty-one, exceed the vendor track's cumulative capital award during the five year period ending April first, two thousand nineteen, the vendor shall continue to receive the capital award after April first, two thousand nineteen until such approved capi- A. 2009--B 62 tal expenditures are paid to the vendor track subject to any required co-investment. In no event shall any vendor track that receives a vendor fee pursuant to clause (F) or (G) of this subparagraph be eligible for a vendor's capital award under this section. Any operator of a vendor track which has received a vendor's capital award, choosing to divest the capital improvement toward which the award was applied, prior to the full depreciation of the capital improvement in accordance with general- ly accepted accounting principles, shall reimburse the state in amounts equal to the total of any such awards. Any capital award not approved for a capital expenditure at a video lottery gaming facility by April first, two thousand nineteen shall be deposited into the state lottery fund for education aid; and (I) 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 facilities, vendor's capital awards, fees payable to the division's video lottery gaming equipment contractors, or racing support payments. (J) Notwithstanding clause (H) of this subparagraph, the gaming 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 use a portion of their 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 each year, for operations. (iii) less an additional vendor's marketing allowance at a rate of ten percent for the first one hundred million dollars annually and eight percent thereafter of the total revenue wagered at the vendor track after payout for prizes to be used by the vendor track for the marketing and promotion and associated costs of its video lottery gaming oper- ations and pari-mutuel horse racing operations, as long as any such costs associated with pari-mutuel horse racing operations simultaneously encourage increased attendance at such vendor's video lottery gaming facilities, consistent with the customary manner of marketing comparable operations in the industry and subject to the overall supervision of the division; provided, however, that the additional vendor's marketing allowance shall not exceed eight percent in any year for any operator of a racetrack located in the county of Westchester or Queens; provided, however, a vendor track that receives a vendor fee pursuant to clause (G) of subparagraph (ii) of this paragraph shall not receive the addi- tional vendor's marketing allowance; provided, however, except for a vendor track located west of State Route 14 from Sodus Point to the Pennsylvania border within New York shall continue to receive a market- ing allowance of ten percent on total revenue wagered at the vendor track after payout for prizes in excess of one hundred million dollars annually provided, however, a vendor that receives a vendor fee pursuant to clause (G-1) of subparagraph (ii) of this paragraph shall receive an additional marketing allowance at a rate of ten percent of the total revenue wagered at the video lottery gaming facility after payout for prizes. In establishing the vendor fee,] § 2. Subdivision b of section 1612 of the tax law is amended by adding three new paragraphs 1-a, 1-b, and 1-c to read as follows: A. 2009--B 63 1-A. (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERATORS 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 EIGHTEEN 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. (II) 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, ENTER- TAINMENT 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 UNRE- IMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. (III) 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. (IV) 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 CAPITAL 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 FACILITY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPITAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT. (V) THE COMPTROLLER OR HIS LEGALLY AUTHORIZED REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGRE- GATED CAPITAL ACCOUNTS. (VI) NOTWITHSTANDING SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH, 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. (VII) ANY BALANCE REMAINING IN THE CAPITAL AWARD ACCOUNT OF A VENDOR TRACK OR OPERATOR OR ANY OTHER VIDEO LOTTERY GAMING FACILITY AS OF MARCH A. 2009--B 64 THIRTY-FIRST, TWO THOUSAND NINETEEN SHALL BE TRANSFERRED FOR DEPOSIT INTO A SEGREGATED ACCOUNT ESTABLISHED BY THIS SUBPARAGRAPH. 1-B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION I 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. 1-C. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERA- TOR 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. § 3. This act shall take effect immediately. PART FF Section 1. Subdivision 25 of section 1301 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: 25. "Gross gaming revenue". The total of all sums actually received by a gaming facility licensee from gaming operations less the total of all sums paid out as winnings to patrons; provided, however, that the total of all sums paid out as winnings to patrons shall not include the cash equivalent value of any merchandise or thing of value included in a jackpot or payout[; provided further, that the issuance to or wagering by patrons of a gaming facility of any promotional gaming credit shall not be taxable for the purposes of determining gross revenue]. § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 2 to read as follows: 2. PERMISSIBLE DEDUCTIONS. (A) A GAMING FACILITY MAY DEDUCT FROM GROSS GAMING REVENUE THE AMOUNT OF APPROVED PROMOTIONAL GAMING CREDITS ISSUED TO AND WAGERED BY PATRONS OF SUCH GAMING FACILITY. THE AMOUNT OF APPROVED PROMOTIONAL CREDITS SHALL BE CALCULATED AS FOLLOWS: (1) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND EIGHTEEN AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY, AN AGGREGATE MAXIMUM AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVENUE AMOUNT DURING THE SPECIFIED PERIOD; (2) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-THREE, A MAXIMUM AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVEN- UE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD; AND (3) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY- THREE AND THEREAFTER, A MAXIMUM AMOUNT EQUAL TO FIFTEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVENUE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD. (B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, "BASE TAXABLE GROSS GAMING REVENUE AMOUNT" MEANS THAT PORTION OF GROSS GAMING REVENUE NOT ATTRIBUTABLE TO DEDUCTIBLE PROMOTIONAL CREDIT. A. 2009--B 65 (C) ANY TAX DUE ON PROMOTIONAL CREDITS DEDUCTED DURING THE FISCAL YEAR IN EXCESS OF THE ALLOWABLE DEDUCTION SHALL BE PAID WITHIN THIRTY DAYS FROM THE END OF THE FISCAL YEAR. (D) ONLY PROMOTIONAL CREDITS THAT ARE ISSUED PURSUANT TO A WRITTEN PLAN APPROVED BY THE COMMISSION AS DESIGNED TO INCREASE REVENUE AT THE FACILITY MAY BE ELIGIBLE FOR SUCH DEDUCTION. THE COMMISSION, IN CONJUNC- TION WITH THE DIRECTOR OF THE BUDGET, MAY SUSPEND APPROVAL OF ANY PLAN WHENEVER THEY JOINTLY DETERMINE THAT THE USE OF THE PROMOTIONAL CREDITS UNDER SUCH PLAN IS NOT EFFECTIVE IN INCREASING THE AMOUNT OF REVENUE EARNED. § 3. This act shall take effect immediately. PART GG Section 1. Subdivision 12 of section 502 of the racing, pari-mutuel wagering and breeding law is amended to read as follows: 12. A. The board of directors shall hold an annual meeting AND MEET NOT LESS THAN QUARTERLY. B. EACH BOARD MEMBER SHALL RECEIVE, NOT LESS THAN SEVEN DAYS IN ADVANCE OF A MEETING, DOCUMENTATION NECESSARY TO ENSURE KNOWLEDGEABLE AND ENGAGED PARTICIPATION. SUCH DOCUMENTATION SHALL INCLUDE MATERIAL RELEVANT TO EACH AGENDA ITEM INCLUDING BACKGROUND INFORMATION OF DISCUSSION ITEMS, RESOLUTIONS TO BE CONSIDERED AND ASSOCIATED DOCUMENTS, A MONTHLY FINANCIAL STATEMENT WHICH SHALL INCLUDE AN UPDATED CASH FLOW STATEMENT AND AGED PAYABLE LISTING OF INDUSTRY PAYABLES, FINANCIAL STATEMENTS, MANAGEMENT REPORTS, COMMITTEE REPORTS AND COMPLIANCE ITEMS. C. STAFF OF THE CORPORATION SHALL ANNUALLY SUBMIT TO THE BOARD FOR APPROVAL A FINANCIAL PLAN ACCOMPANIED BY EXPENDITURE, REVENUE AND CASH FLOW PROJECTIONS. THE PLAN SHALL CONTAIN PROJECTION OF REVENUES AND EXPENDITURES BASED ON REASONABLE AND APPROPRIATE ASSUMPTIONS AND METHODS OF ESTIMATIONS, AND SHALL PROVIDE THAT OPERATIONS WILL BE CONDUCTED WITHIN THE CASH RESOURCES AVAILABLE. THE FINANCIAL PLAN SHALL ALSO INCLUDE INFORMATION REGARDING PROJECTED EMPLOYMENT LEVELS, COLLECTIVE BARGAINING AGREEMENTS AND OTHER ACTIONS RELATING TO EMPLOYEE COSTS, CAPITAL CONSTRUCTION AND SUCH OTHER MATTERS AS THE BOARD MAY DIRECT. D. STAFF OF THE CORPORATION SHALL PREPARE AND SUBMIT TO THE BOARD ON A QUARTERLY BASIS A REPORT OF SUMMARIZED BUDGET DATA DEPICTING OVERALL TRENDS, BY MAJOR CATEGORY WITHIN FUNDS, OF ACTUAL REVENUES AND BUDGET EXPENDITURES FOR THE ENTIRE BUDGET RATHER THAN INDIVIDUAL LINE ITEMS, AS WELL AS UPDATED QUARTERLY CASH FLOW PROJECTIONS OF RECEIPTS AND DISBURSEMENTS. SUCH REPORTS SHALL COMPARE REVENUE ESTIMATES AND APPRO- PRIATIONS AS SET FORTH IN SUCH BUDGET AND IN THE QUARTERLY REVENUE AND EXPENDITURE PROJECTIONS SUBMITTED THEREWITH, WITH THE ACTUAL REVENUES AND EXPENDITURES MADE TO DATE. SUCH REPORTS SHALL ALSO COMPARE ACTUAL RECEIPTS AND DISBURSEMENTS WITH THE ESTIMATES CONTAINED IN THE CASH FLOW PROJECTIONS, TOGETHER WITH VARIANCES AND THEIR EXPLANATION. ALL QUARTER- LY REPORTS SHALL BE ACCOMPANIED BY RECOMMENDATIONS FROM THE PRESIDENT SETTING FORTH ANY REMEDIAL ACTION NECESSARY TO RESOLVE ANY UNFAVORABLE BUDGET VARIANCE INCLUDING THE OVERESTIMATION OF REVENUES AND THE UNDER- ESTIMATION OF APPROPRIATIONS. THESE REPORTS SHALL BE COMPLETED WITHIN THIRTY DAYS AFTER THE END OF EACH QUARTER AND SHALL BE SUBMITTED TO THE BOARD BY THE CORPORATION COMPTROLLER. E. REVENUE ESTIMATES AND THE FINANCIAL PLAN SHALL BE REGULARLY REEXAM- INED BY THE BOARD AND STAFF AND SHALL PROVIDE A MODIFIED FINANCIAL PLAN IN SUCH DETAIL AND WITHIN SUCH TIME PERIODS AS THE BOARD MAY REQUIRE. IN THE EVENT OF REDUCTIONS IN SUCH REVENUE ESTIMATES, THE BOARD SHALL A. 2009--B 66 CONSIDER AND APPROVE SUCH ADJUSTMENTS IN REVENUE ESTIMATES AND REDUCTIONS IN TOTAL EXPENDITURES AS MAY BE NECESSARY TO CONFORM TO SUCH REVISED REVENUE ESTIMATES OR AGGREGATE EXPENDITURE LIMITATIONS. § 2. Intentionally omitted. § 3. Intentionally omitted. § 4. This act shall take effect immediately. PART HH 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 GG of chapter 59 of the laws of 2018, 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 A. 2009--B 67 thirtieth, two thousand [nineteen] TWENTY; 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 [nineteen] TWENTY; 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY, 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY 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 [nineteen] TWENTY. On any day on which a franchised corpo- ration 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] 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 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 GG of chapter 59 of the laws of 2018, 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 A. 2009--B 68 thirtieth, two thousand [nineteen] TWENTY. This section shall supersede 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY. 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 GG of chapter 59 of the laws of 2018, 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 [eighteen] NINETEEN, 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 GG of chapter 59 of the laws of 2018, 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, [2019] 2020; 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. A. 2009--B 69 § 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 GG of chapter 59 of the laws of 2018, 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, [2019] 2020; 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 GG of chapter 59 of the laws of 2018, 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. A. 2009--B 70 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 thou- sand one through December thirty-first, two thousand [nineteen] TWENTY, 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 [nineteen] TWENTY, such payment shall be seven-tenths of one per centum of such pools. § 10. This act shall take effect immediately. PART II Intentionally Omitted PART JJ Section 1. Section 2 of part EE of chapter 59 of the laws of 2018, amending the racing, pari-mutuel wagering and breeding law relating to adjusting the franchise payment and establishing an advisory committee to review the structure, operations and funding of equine drug testing and research, is amended to read as follows: § 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] 2019 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 2. Subdivision 1 of section 902 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 15 of the laws of 2010, is amended to read as follows: A. 2009--B 71 1. In order to assure the public's confidence and continue the high degree of integrity in racing at the pari-mutuel betting tracks, equine drug testing at race meetings shall be conducted by a state college within this state with an approved equine science program OR A SUITABLE LABORATORY IN THE STATE OF NEW YORK. The [state racing and wagering board] GAMING COMMISSION shall promulgate any rules and regulations necessary to implement the provisions of this section, including admin- istrative penalties of loss of purse money, fines, or denial, suspen- sion[,] or revocation of a license for racing drugged horses. § 3. This act shall take effect immediately. PART KK Intentionally Omitted PART LL Intentionally Omitted PART MM Section 1. Section 1405-B of the tax law is amended by adding a new subdivision (c) to read as follows: (C) THE INFORMATION CONTAINED WITHIN INFORMATION RETURNS FILED UNDER SUBDIVISION (B) OF THIS SECTION MAY BE PROVIDED BY THE COMMISSIONER TO LOCAL ASSESSORS FOR USE IN REAL PROPERTY TAX ADMINISTRATION, AND SUCH INFORMATION SHALL NOT BE SUBJECT TO THE SECRECY PROVISIONS SET FORTH IN SECTION FOURTEEN HUNDRED EIGHTEEN OF THIS CHAPTER, PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL NOT DISCLOSE SOCIAL SECURITY NUMBERS OR EMPLOYER IDENTIFICATION NUMBERS. § 2. This act shall take effect January 1, 2020. PART NN Section 1. Paragraph 3 of subsection (e-1) of section 606 of the tax law, as added by section 2 of part K of chapter 59 of the laws of 2014, is amended as follows: (3) Determination of credit. For taxable years after two thousand thirteen [and prior to two thousand sixteen], the amount of the credit allowable under this subsection shall be determined as follows: If household gross income Excess real property The credit amount is for the taxable year is: taxes are the excess the following of real property tax percentage of excess equivalent or the property taxes: excess of qualifying real property taxes over the following percentage of household gross income: Less than $100,000 4 4.5 $100,000 to less than 5 3.0 $150,000 $150,000 to less than 6 1.5 $200,000 A. 2009--B 72 Notwithstanding the foregoing provisions, the maximum credit deter- mined under this subparagraph may not exceed five hundred dollars. § 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2016; provided, however, that the amendments to subsection (e-1) of section 606 of the tax law made by section one of this act shall not affect the repeal of such subsection and shall be deemed to be repealed therewith. PART OO Intentionally Omitted PART PP Intentionally Omitted PART QQ Intentionally Omitted PART RR Intentionally Omitted PART SS Section 1. Subdivision 6 of section 1306-a of the real property tax law, as amended by section 3 of part TT of chapter 59 of the laws of 2017, is amended to read as follows: 6. When the commissioner determines, at least twenty days prior to the levy of school district taxes, that an advance credit of the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law will be provided to the owners of a parcel in that school district, he or she shall so notify the assessor, the county director of real property tax services, and the authorities of the school district, who shall cause a statement to be placed on the tax bill for the parcel in substantially the following form: "An estimated STAR check HAS BEEN OR will be mailed to you [upon issuance] by the NYS Tax Department. Any overpayment or underpayment can be reconciled on your next tax return or STAR credit check." Notwithstanding any provision of law to the contrary, in the event that the parcel in question had been granted a STAR exemption on the assessment roll upon which school district taxes are to be levied, such exemption shall be deemed null and void, shall be removed from the assessment roll, and shall be disregarded when the parcel's tax liabil- ity is determined. The assessor or other local official or officials having custody and control of the data file used to generate school district tax rolls and tax bills shall be authorized and directed to change such file as necessary to enable the school district authorities to discharge the duties imposed upon them by this subdivision. § 2. This act shall take effect immediately. PART TT A. 2009--B 73 Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real property tax law, as added by section 1 of part D of chapter 60 of the laws of 2016, is amended to read as follows: (a-2) Notwithstanding any provision of law to the contrary, where [a renewal] AN application for the "enhanced" STAR exemption authorized by subdivision four of this section has not been filed on or before the taxable status date, and the owner believes that good cause existed for the failure to file the [renewal] application by that date, the owner may, no later than the last day for paying school taxes without incur- ring interest or penalty, submit a written request to the commissioner asking him or her to extend the filing deadline and grant the exemption. Such request shall contain an explanation of why the deadline was missed, and shall be accompanied by [a renewal] AN application, reflect- ing the facts and circumstances as they existed on the taxable status date. After consulting with the assessor, the commissioner may extend the filing deadline and grant the exemption if the commissioner is satisfied that (i) good cause existed for the failure to file the [renewal] application by the taxable status date, and that (ii) the applicant is otherwise entitled to the exemption. The commissioner shall mail notice of his or her determination to such owner and the assessor. If the determination states that the commissioner has granted the exemption, the assessor shall thereupon be authorized and directed to correct the assessment roll accordingly, or, if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. If the correction is not made before school taxes are levied, the [failure to take the exemption into account in the computation of the tax shall be deemed a "clerical error" for purposes of title three of article five of this chapter, and shall be corrected accordingly] SCHOOL DISTRICT AUTHORITIES SHALL BE AUTHORIZED AND DIRECTED TO TAKE ACCOUNT OF THE FACT THAT THE COMMISSIONER HAS GRANTED THE EXEMPTION BY CORRECTING THE APPLICANT'S TAX BILL AND/OR ISSUING A REFUND ACCORDINGLY. § 2. Paragraph (d) of subdivision 2 of section 496 of the real proper- ty tax law, as added by section 3 of part A of chapter 60 of the laws of 2016, is amended to read as follows: (d) If the applicant is renouncing a STAR exemption in order to quali- fy for the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law, and no other exemptions are being renounced on the same application, OR IF THE APPLICANT IS RENOUNC- ING A STAR EXEMPTION BEFORE SCHOOL TAXES HAVE BEEN LEVIED ON THE ASSESS- MENT ROLL UPON WHICH THAT EXEMPTION APPEARS, no processing fee shall be applicable. § 3. Paragraph (a) of subdivision 2 of section 496 of the real proper- ty tax law, as amended by section 3 of part A of chapter 60 of the laws of 2016, is amended to read as follows: (a) For each assessment roll on which the renounced exemption appears, the assessed value that was exempted shall be multiplied by the tax rate or rates that were applied to that assessment roll, OR IN THE CASE OF A RENOUNCED STAR EXEMPTION, THE TAX SAVINGS CALCULATED PURSUANT TO SUBDI- VISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER. Interest shall then be added to each such product at the rate prescribed by section nine hundred twenty-four-a of this chapter or such other law as may be applicable for each month or portion thereon since the levy of taxes upon such assessment roll. A. 2009--B 74 § 4. Paragraph 5 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: (5) Disqualification. A taxpayer shall not qualify for the credit authorized by this subsection if the parcel that serves as the taxpay- er's primary residence received the STAR exemption on the assessment roll upon which school district taxes for the associated fiscal year [where] WERE levied. Provided, however, that the taxpayer may remove this disqualification by renouncing the exemption [and making any required payments] by December thirty-first of the taxable year, as provided by subdivision sixteen of section four hundred twenty-five of the real property tax law, AND MAKING ANY REQUIRED PAYMENTS WITHIN THE TIME FRAME PRESCRIBED BY SECTION FOUR HUNDRED NINETY-SIX OF THE REAL PROPERTY TAX LAW. § 5. This act shall take effect immediately. PART UU Section 1. Intentionally omitted. § 2. Intentionally omitted. § 3. Intentionally omitted. § 4. Intentionally omitted. § 5. Intentionally omitted. § 6. Intentionally omitted. § 7. Intentionally omitted. § 8. Intentionally omitted. § 9. Intentionally omitted. § 10. Intentionally omitted. § 11. Intentionally omitted. § 12. Intentionally omitted. § 13. Intentionally omitted. § 14. Intentionally omitted. § 15. Intentionally omitted. § 16. Intentionally omitted. § 17. The tax law is amended by adding a new article 28-C to read as follows: ARTICLE 28-C SUPPLEMENTAL TAX ON VAPOR PRODUCTS SECTION 1180. DEFINITIONS. 1181. IMPOSITION OF TAX. 1182. IMPOSITION OF COMPENSATING USE TAX. 1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL. 1184. ADMINISTRATIVE PROVISIONS. 1185. CRIMINAL PENALTIES. 1186. DEPOSIT AND DISPOSITION OF REVENUE. § 1180. DEFINITIONS. FOR THE PURPOSES OF THE TAXES IMPOSED BY THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (A) "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED IN TO 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 A. 2009--B 75 DEVICE, OR MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF ARTI- CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW. (B) "VAPOR PRODUCTS DEALER" MEANS A PERSON LICENSED BY THE COMMISSION- ER TO SELL VAPOR PRODUCTS IN THIS STATE. § 1181. IMPOSITION OF TAX. IN ADDITION TO ANY OTHER TAX IMPOSED BY THIS CHAPTER OR OTHER LAW, THERE IS HEREBY IMPOSED A TAX OF TWENTY PERCENT ON RECEIPTS FROM THE RETAIL SALE OF VAPOR PRODUCTS SOLD IN THIS STATE. THE TAX IS IMPOSED ON THE PURCHASER AND COLLECTED BY THE VAPOR PRODUCTS DEALER AS DEFINED IN SUBDIVISION (B) OF SECTION ELEVEN HUNDRED EIGHTY OF THIS ARTICLE, IN TRUST FOR AND ON ACCOUNT OF THE STATE. § 1182. IMPOSITION OF COMPENSATING USE TAX. (A) EXCEPT TO THE EXTENT THAT VAPOR PRODUCTS HAVE ALREADY BEEN OR WILL BE SUBJECT TO THE TAX IMPOSED BY SECTION ELEVEN HUNDRED EIGHTY-ONE OF THIS ARTICLE, OR ARE OTHERWISE EXEMPT UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED A USE TAX ON EVERY USE WITHIN THE STATE OF VAPOR PRODUCTS: (1) PURCHASED AT RETAIL; AND (2) MANUFACTURED OR PROCESSED BY THE USER IF ITEMS OF THE SAME KIND ARE SOLD BY HIM OR HER IN THE REGULAR COURSE OF HIS OR HER BUSINESS. (B) FOR PURPOSES OF PARAGRAPH ONE OF SUBDIVISION (A) OF THIS SECTION, THE TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH VAPOR PRODUCT PURCHASED AT RETAIL. FOR PURPOSES OF PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION, THE TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE PRICE AT WHICH SUCH ITEMS OF THE SAME KIND OF VAPOR PRODUCT ARE OFFERED FOR SALE BY THE USER, AND THE MERE STORAGE, KEEPING, RETENTION OR WITHDRAWAL FROM STORAGE OF SUCH VAPOR PRODUCT BY THE PERSON THAT MANUFACTURED OR PROC- ESSED SUCH VAPOR PRODUCT SHALL NOT BE DEEMED A TAXABLE USE BY HIM OR HER. (C) THE TAX DUE PURSUANT TO THIS SECTION SHALL BE PAID AND REPORTED NO LATER THAN TWENTY DAYS AFTER SUCH USE ON A FORM PRESCRIBED BY THE COMMISSIONER. § 1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL. (A) EVERY PERSON WHO INTENDS TO SELL VAPOR PRODUCTS IN THIS STATE MUST RECEIVE FROM THE COMMISSIONER A CERTIFICATE OF REGISTRATION PRIOR TO ENGAGING IN BUSINESS. SUCH PERSON MUST ELECTRONICALLY SUBMIT A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION FOR EACH LOCATION AT WHICH VAPOR PRODUCTS WILL BE SOLD IN THIS STATE, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND SHALL BE ACCOMPANIED BY A NON-REFUNDABLE APPLICATION FEE OF THREE HUNDRED DOLLARS. (B) A VAPOR PRODUCTS DEALER CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE CALENDAR YEAR FOR WHICH IT IS ISSUED UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION OF THE TERM STATED ON THE CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE SHALL BE NULL AND VOID. A CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE AND SHALL BE DESTROYED IMMEDIATELY UPON THE VAPOR PRODUCTS DEALER CEASING TO DO BUSINESS AS SPECIFIED IN SUCH CERTIFICATE OR IN THE EVENT THAT SUCH BUSINESS NEVER COMMENCED. (C) EVERY VAPOR PRODUCT DEALER SHALL PUBLICLY DISPLAY A VAPOR PRODUCTS DEALER CERTIFICATE OF REGISTRATION IN EACH PLACE OF BUSINESS IN THIS STATE WHERE VAPOR PRODUCTS ARE SOLD AT RETAIL. A VAPOR PRODUCTS DEALER WHO HAS NO REGULAR PLACE OF BUSINESS SHALL PUBLICLY DISPLAY SUCH VALID CERTIFICATE ON EACH OF ITS CARTS, STANDS, TRUCKS OR OTHER MERCHANDISING DEVICES THROUGH WHICH IT SELLS VAPOR PRODUCTS. (D) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS- TRATION TO ANY APPLICANT WHO DOES NOT POSSESS A VALID CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER. IN A. 2009--B 76 ADDITION, THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGIS- TRATION, OR SUSPEND, CANCEL OR REVOKE A CERTIFICATE OF REGISTRATION ISSUED TO ANY PERSON WHO: (A) HAS A PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER; (B) HAS HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE OR ANY LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (C) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (D) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTICLE; (E) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO BE GIVEN A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTICLE WHICH IS FALSE; (F) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE; OR (G) WHOSE PLACE OF BUSINESS IS AT THE SAME PREMISES AS THAT OF A PERSON WHOSE VAPOR PRODUCTS DEALER REGISTRATION HAS BEEN REVOKED AND WHERE SUCH REVOCATION IS STILL IN EFFECT, UNLESS THE APPLICANT OR VAPOR PRODUCTS DEALER PROVIDES THE COMMISSIONER WITH ADEQUATE DOCUMENTA- TION DEMONSTRATING THAT SUCH APPLICANT OR VAPOR PRODUCTS DEALER ACQUIRED THE PREMISES OR BUSINESS THROUGH AN ARM'S LENGTH TRANSACTION AS DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER. (2) IN ADDITION TO THE GROUNDS PROVIDED IN PARAGRAPH ONE OF THIS SUBDIVISION, THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGISTRATION AND SHALL CANCEL OR SUSPEND A CERTIFICATE OF REGISTRATION AS DIRECTED BY AN ENFORCEMENT OFFICER PURSUANT TO ARTICLE THIRTEEN-F OF THE PUBLIC HEALTH LAW. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, AN APPLICANT WHOSE APPLICATION FOR A CERTIFICATE OF REGISTRA- TION IS REFUSED OR A VAPOR PRODUCTS DEALER WHOSE REGISTRATION IS CANCELLED OR SUSPENDED UNDER THIS PARAGRAPH SHALL HAVE NO RIGHT TO A HEARING UNDER THIS CHAPTER AND SHALL HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE COMMIS- SIONER WITH RESPECT TO SUCH REFUSAL, SUSPENSION OR CANCELLATION; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO DENY A VAPOR PRODUCTS DEALER A HEARING UNDER ARTICLE THIRTEEN-F OF THE PUBLIC HEALTH LAW OR TO PROHIBIT VAPOR PRODUCTS DEALERS FROM COMMENCING A COURT ACTION OR PROCEEDING AGAINST AN ENFORCEMENT OFFICER AS DEFINED IN SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC HEALTH LAW. (E) IF A VAPOR PRODUCTS DEALER IS SUSPENDED, CANCELLED OR REVOKED AND SUCH VAPOR PRODUCTS DEALER SELLS VAPOR PRODUCTS THROUGH MORE THAN ONE PLACE OF BUSINESS IN THIS STATE, THE VAPOR PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION ISSUED TO THAT PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE, WHERE SUCH VIOLATION OCCURRED, SHALL BE SUSPENDED, REVOKED OR CANCELLED. PROVIDED, HOWEVER, UPON A VAPOR PRODUCTS DEALER'S THIRD SUSPENSION, CANCELLATION OR REVOCATION WITHIN A FIVE-YEAR PERIOD FOR ANY ONE OR MORE BUSINESSES OWNED OR OPERATED BY THE VAPOR PRODUCTS DEALER, SUCH SUSPENSION, CANCELLATION, OR REVOCATION OF THE VAPOR PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION SHALL APPLY TO ALL PLACES OF BUSINESS WHERE HE OR SHE SELLS VAPOR PRODUCTS IN THIS STATE. (F) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION MUST NOTIFY THE COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE CERTIF- ICATE OR CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR THE CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS AND MUST BE MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER. A. 2009--B 77 (G) EVERY VAPOR PRODUCTS DEALER WHO HOLDS A CERTIFICATE OF REGISTRA- TION UNDER THIS ARTICLE SHALL BE REQUIRED TO REAPPLY FOR A CERTIFICATE OF REGISTRATION FOR THE FOLLOWING CALENDAR YEAR ON OR BEFORE THE TWENTI- ETH DAY OF SEPTEMBER AND SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND CONDITIONS, INCLUDING GROUNDS FOR REFUSAL, AS AN INITIAL REGISTRATION UNDER THIS ARTICLE, INCLUDING BUT NOT LIMITED TO THE PAYMENT OF THE THREE HUNDRED DOLLAR APPLICATION FEE FOR EACH RETAIL LOCATION. (H) IN ADDITION TO ANY OTHER PENALTY IMPOSED BY THIS CHAPTER, ANY VAPOR PRODUCTS DEALER WHO VIOLATES THE PROVISIONS OF THIS SECTION, (1) FOR A FIRST VIOLATION IS LIABLE FOR A CIVIL FINE NOT LESS THAN FIVE THOUSAND DOLLARS BUT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND SUCH CERTIFICATE OF REGISTRATION MAY BE SUSPENDED FOR A PERIOD OF NOT MORE THAN SIX MONTHS; AND (2) FOR A SECOND OR SUBSEQUENT VIOLATION WITHIN THREE YEARS FOLLOWING A PRIOR VIOLATION OF THIS SECTION, IS LIABLE FOR A CIVIL FINE NOT LESS THAN TEN THOUSAND DOLLARS BUT NOT TO EXCEED THIRTY- FIVE THOUSAND DOLLARS AND SUCH CERTIFICATE OF REGISTRATION MAY BE SUSPENDED FOR A PERIOD OF UP TO THIRTY-SIX MONTHS; OR (3) FOR A THIRD VIOLATION WITHIN A PERIOD OF FIVE YEARS, ITS VAPOR PRODUCTS CERTIFICATE OR CERTIFICATES OF REGISTRATION ISSUED TO EACH PLACE OF BUSINESS OWNED OR OPERATED BY THE VAPOR PRODUCTS DEALER IN THIS STATE, SHALL BE REVOKED FOR A PERIOD OF UP TO FIVE YEARS. § 1184. ADMINISTRATIVE PROVISIONS. (A) EXCEPT AS OTHERWISE PROVIDED FOR IN THIS ARTICLE, THE TAXES IMPOSED BY THIS ARTICLE SHALL BE ADMINIS- TERED AND COLLECTED IN A LIKE MANNER AS AND JOINTLY WITH THE TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS CHAPTER. IN ADDITION, EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, ALL OF THE PROVISIONS OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER (EXCEPT SECTIONS ELEVEN HUNDRED SEVEN, ELEVEN HUNDRED EIGHT, ELEVEN HUNDRED NINE, AND ELEVEN HUNDRED FORTY-EIGHT) RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION AND REVIEW OF THE TAXES IMPOSED BY SUCH SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN, INCLUDING, BUT NOT LIMITED TO, THE PROVISIONS RELATING TO DEFINITIONS, RETURNS, EXEMPTIONS, PENALTIES, TAX SECRECY, PERSONAL LIABILITY FOR THE TAX, AND COLLECTION OF TAX FROM THE CUSTOMER, SHALL APPLY TO THE TAXES IMPOSED BY THIS ARTI- CLE SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO THE TAXES IMPOSED BY THIS ARTICLE WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTI- CLE AND SUCH MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE TAXES SO IMPOSED. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE. (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE EXEMPTIONS PROVIDED IN PARAGRAPH TEN OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, AND THE PROVISIONS OF SECTION ELEVEN HUNDRED SIXTEEN, EXCEPT THOSE PROVIDED IN PARAGRAPHS ONE, TWO, THREE AND SIX OF SUBDIVISION (A) OF SUCH SECTION, SHALL NOT APPLY TO THE TAXES IMPOSED BY THIS ARTICLE. (C) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION OR SECTION ELEVEN HUNDRED FORTY-SIX OF THIS CHAPTER, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE COMMISSIONER OF HEALTH OR HIS OR HER AUTHORIZED REPRESENTATIVE TO INSPECT ANY RETURN RELATED TO THE TAX IMPOSED BY THIS ARTICLE AND MAY FURNISH TO THE COMMISSIONER OF HEALTH ANY SUCH RETURN OR SUPPLY HIM OR HER WITH INFORMATION CONCERNING AN ITEM CONTAINED IN A. 2009--B 78 ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF A LIABILITY UNDER THIS ARTICLE. § 1185. CRIMINAL PENALTIES. THE CRIMINAL PENALTIES IN SECTIONS EIGH- TEEN HUNDRED ONE THROUGH EIGHTEEN HUNDRED SEVEN AND EIGHTEEN HUNDRED SEVENTEEN OF THIS CHAPTER SHALL APPLY TO THIS ARTICLE WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE. § 1186. DEPOSIT AND DISPOSITION OF REVENUE. THE TAXES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK- ING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER, TO THE CREDIT OF THE COMPTROLLER IN TRUST FOR THE TOBACCO CONTROL AND INSURANCE INITIATIVES POOL ESTABLISHED BY SECTION NINETY-TWO-DD OF THE STATE FINANCE LAW AND DISTRIBUTED BY THE COMMISSIONER OF HEALTH IN ACCORDANCE WITH SECTION TWENTY-EIGHT HUNDRED SEVEN-V OF THE PUBLIC HEALTH LAW. 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. PROVIDED, HOWEVER THAT THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNTS HE OR SHE RECEIVES FROM THE REGISTRATION FEES UNDER SECTION ELEVEN HUNDRED EIGHTY-THREE OF THIS ARTICLE, BEFORE DEPOSIT INTO THE TOBACCO CONTROL AND INSURANCE INITIATIVES POOL, 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 TAXES IMPOSED BY THIS ARTICLE. § 18. Subdivision (a) of section 92-dd of the state finance law, as amended by section 3 of part T of chapter 61 of the laws of 2011, is amended to read as follows: (a) On and after April first, two thousand five, such fund shall consist of the revenues heretofore and hereafter collected or required to be deposited pursuant to paragraph (a) of subdivision eighteen of section twenty-eight hundred seven-c, and sections twenty-eight hundred seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t of the public health law, subdivision (b) of section four hundred eight- y-two AND SECTION ELEVEN HUNDRED EIGHTY-SIX of the tax law and required to be credited to the tobacco control and insurance initiatives pool, subparagraph (O) of paragraph four of subsection (j) of section four thousand three hundred one of the insurance law, section twenty-seven of part A of chapter one of the laws of two thousand two and all other moneys credited or transferred thereto from any other fund or source pursuant to law. § 19. Severability clause. If any clause, sentence, paragraph, subdi- vision, 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. A. 2009--B 79 § 20. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however that section seven- teen of this act shall take effect on the first day of a quarterly peri- od described in subdivision (b) of section 1136 of the tax law next commencing at least one hundred eighty days after this act shall become a law, and shall apply to sales and uses of vapor products on or after such date. PART VV Intentionally Omitted PART WW Section 1. Section 1166-a of the tax law, as added by section 1 of part F of chapter 25 of the laws of 2009, is amended to read as follows: § 1166-a. Special supplemental tax on passenger car rentals WITHIN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (a) In addition to the tax imposed under section eleven hundred sixty of this article and in addition to any tax imposed under any other article of this chapter, there is hereby imposed and there shall be paid a tax at the rate of [five] SIX percent upon the receipts from every rental of a passenger car which is a retail sale of such passenger car within the metropolitan commuter transportation district as defined in [subdivision] SUBSECTION (a) of section eight hundred of this chapter. (b) Except to the extent that a passenger car rental described in subdivision (a) of this section, OR SECTION ELEVEN HUNDRED SIXTY-SIX-B OF THIS ARTICLE, has already been or will be subject to the tax imposed under such subdivision OR SECTION and except as otherwise exempted under this article, there is hereby imposed on every person and there shall be paid a use tax for the use within the metropolitan commuter transporta- tion district as defined in [subdivision] SUBSECTION (a) of section eight hundred of this chapter; of any passenger car rented by the user [which] THAT is a purchase at retail of such passenger car, but not including any lease of a passenger car to which subdivision (i) of section eleven hundred eleven of this chapter applies. For purposes of this [paragraph] SUBDIVISION, the tax shall be at the rate of [five] SIX percent of the consideration given or contracted to be given for such property, or for the use of such property, including any charges for shipping or delivery as described in paragraph three of subdivision (b) of section eleven hundred one of this chapter, but excluding any credit for tangible personal property accepted in part payment and intended for resale. § 2. The tax law is amended by adding a new section 1166-b to read as follows: § 1166-B. SPECIAL SUPPLEMENTAL TAX ON PASSENGER CAR RENTALS OUTSIDE OF THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (A) IN ADDITION TO THE TAX IMPOSED UNDER SECTION ELEVEN HUNDRED SIXTY OF THIS ARTICLE AND IN ADDITION TO ANY TAX IMPOSED UNDER ANY OTHER ARTICLE OF THIS CHAPTER, THERE IS HEREBY IMPOSED AND THERE SHALL BE PAID A TAX AT THE RATE OF SIX PERCENT UPON THE RECEIPTS FROM EVERY RENTAL OF A PASSENGER CAR THAT IS NOT SUBJECT TO THE TAX DESCRIBED IN SECTION ELEVEN HUNDRED SIXTY-SIX-A OF THIS ARTICLE, BUT WHICH IS A RETAIL SALE OF SUCH PASSENGER CAR WITHIN THE STATE. (B) EXCEPT TO THE EXTENT THAT A PASSENGER CAR RENTAL DESCRIBED IN SUBDIVISION (A) OF THIS SECTION OR IN SECTION ELEVEN HUNDRED A. 2009--B 80 SIXTY-SIX-A OF THIS ARTICLE, HAS ALREADY BEEN SUBJECT TO THE TAX IMPOSED UNDER SUCH SUBDIVISION OR SECTION, AND EXCEPT AS OTHERWISE EXEMPTED UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED ON EVERY PERSON AND THERE SHALL BE PAID A USE TAX FOR THE USE WITHIN THE STATE OF ANY PASSENGER CAR RENTED BY THE USER THAT IS A PURCHASE AT RETAIL OF SUCH PASSENGER CAR, BUT NOT INCLUDING ANY LEASE OF A PASSENGER CAR TO WHICH SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS CHAPTER APPLIES. FOR PURPOSES OF THIS SUBDIVISION, THE TAX SHALL BE AT THE RATE OF SIX PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH PROPERTY, OR FOR THE USE OF SUCH PROPERTY, INCLUDING ANY CHARGES FOR SHIPPING OR DELIVERY AS DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, BUT EXCLUDING ANY CREDIT FOR TANGIBLE PERSONAL PROPERTY ACCEPTED IN PART PAYMENT AND INTENDED FOR RESALE. § 3. Section 1167 of the tax law, as amended by section 3 of part F of chapter 25 of the laws of 2009, is amended to read as follows: § 1167. Deposit and disposition of revenue. All taxes, interest and penalties 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, except that after reserving amounts in accordance with such section one hundred seventy-one-a of this chapter, the remainder shall be paid by the comptroller to the credit of the highway and bridge trust fund established by section eighty-nine-b of the state finance law, provided, however[,]: (A) taxes, interest and penalties collected or received pursuant to section eleven hundred sixty-six-a of this article shall be paid to the credit of the metropolitan transportation authority aid trust account of the metropol- itan transportation authority financial assistance fund established by section ninety-two-ff of the state finance law; AND (B) TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED PURSUANT TO SECTION ELEVEN HUNDRED SIXTY-SIX-B OF THIS ARTICLE SHALL BE PAID TO THE CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT ESTABLISHED BY SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW. § 4. This act shall take effect June 1, 2019, and shall apply to rentals of passenger cars commencing on and after such date whether or not under a prior contract; provided, however where such passenger car rentals are billed on a monthly, quarterly or other period basis, the tax imposed by this act shall apply to the rental for such period if more than half of the days included in such period are days subsequent to such effective date. PART XX Intentionally Omitted PART YY Section 1. The opening paragraph of subdivision 7 of section 221 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part NN of chapter 59 of the laws of 2018, 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 A. 2009--B 81 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 [eighteen] NINETEEN THROUGH TWO THOUSAND TWENTY-ONE the New York Jockey Injury Compensation Fund, Inc. may use up to two million FIVE HUNDRED THOUSAND dollars from the account established pursuant to subdi- vision nine of section two hundred eight of this article 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 appear- ances, 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 NN of chapter 59 of the laws of 2018, 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 [eighteen] NINETEEN THROUGH TWO THOUSAND TWENTY-ONE the New York Jockey Injury Compensation Fund, Inc. may use up to two million FIVE HUNDRED THOUSAND 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. This act shall take effect immediately. PART ZZ Section 1. Subdivisions 1, 3 and 5 of section 171-v of the tax law, as added by section 1 of part P of chapter 59 of the laws of 2013, are amended to read as follows: (1) The commissioner shall enter into a written agreement with the commissioner of motor vehicles, which shall set forth the procedures for the two departments to cooperate in a program to improve tax collection through the suspension of drivers' licenses of taxpayers with past-due tax liabilities equal to or in excess of ten thousand dollars MULTIPLIED BY THE APPLICABLE INFLATION ADJUSTMENT. For the purposes of this section, the term "tax liabilities" shall mean any tax, surcharge, or fee administered by the commissioner, or any penalty or interest due on these amounts owed by an individual with a New York driver's license, the term "driver's license" means any license issued by the department of motor vehicles, except for a commercial driver's license as defined in section five hundred one-a of the vehicle and traffic law, and the term "past-due tax liabilities" means any tax liability or liabilities which have become fixed and final such that the taxpayer no longer has A. 2009--B 82 any right to administrative or judicial review, AND THE "APPLICABLE INFLATION ADJUSTMENT" FOR A CALENDAR YEAR SHALL BE DETERMINED UNDER THE PRINCIPLES OF SECTION 7345(F) OF THE INTERNAL REVENUE CODE OF 1986, USING THE CALENDAR YEAR OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN WHICH AMENDED THIS SUBDIVISION AS THE BASE PERIOD. THE TEN THOUSAND DOLLAR LIMITATION IN THIS SUBDIVISION SHALL NOT APPLY TO A TAXPAYER THAT THE COMMISSIONER DETERMINES HAS TAKEN AFFIRMA- TIVE STEPS TO EVADE OR AVOID THE COLLECTION OF TAX, SUCH AS BY HIDING ASSETS. (3) The department shall provide notice to the taxpayer of his or her inclusion in the license suspension program no later than sixty days prior to the date the department intends to inform the commissioner of motor vehicles of the taxpayer's inclusion. However, no such notice shall be issued to a taxpayer: (I) whose wages are being garnished by the department for the payment of past-due tax liabilities or past-due child support or combined child and spousal support arrears; (II) WHO RECEIVES PUBLIC ASSISTANCE OR SUPPLEMENTAL SECURITY INCOME; OR (III) WHOSE INCOME DOES NOT EXCEED TWO HUNDRED FIFTY PERCENT OF THE POVERTY LEVEL AS REPORTED BY THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES OR ANY SUCCESSOR AGENCY. Notice shall be provided by first class mail to the taxpayer's last known address as such address appears in the elec- tronic systems or records of the department. Such notice shall include: (a) a clear statement of the past-due tax liabilities along with a statement that the department shall provide to the department of motor vehicles the taxpayer's name, social security number and any other iden- tifying information necessary for the purpose of suspending his or her driver's license pursuant to this section and subdivision four-f of section five hundred ten of the vehicle and traffic law sixty days after the mailing or sending of such notice to the taxpayer; (b) a statement that the taxpayer may avoid suspension of his or her license by fully satisfying the past-due tax liabilities [or], by making payment arrangements satisfactory to the commissioner, [and information as to how] BY DEMONSTRATING ANY OF THE GROUNDS FOR CHALLENGE SET FORTH IN SUBDIVISION FIVE OF THIS SECTION, OR BY PRESENTING FACTS TO THE COMMISSIONER RESULTING IN THE COMMISSIONER WAIVING SUSPENSION OF HIS OR HER LICENSE BASED ON THE EQUITIES OF THE CASE. SUCH STATEMENT SHALL INCLUDE INFORMATION REGARDING ALL OF THE AGENCY'S PROGRAMS THROUGH WHICH the taxpayer can pay the past-due tax liabilities to the department, enter into a payment arrangement or request additional information NEED- ED TO CHALLENGE THE SUSPENSION UNDER SUBDIVISION FIVE OF THIS SECTION OR DEMONSTRATE THE EQUITIES OF THE CASE; (c) a statement that the taxpayer's right to protest the notice is limited to raising issues set forth in subdivision five of this section; (d) a statement that the suspension of the taxpayer's driver's license shall continue until the past-due tax liabilities are fully paid or the taxpayer makes payment arrangements satisfactory to the commissioner; and (e) any other information that the commissioner deems necessary. (5) Notwithstanding any other provision of law, and except as specif- ically provided herein, the taxpayer shall have no right to commence a court action or proceeding or to any other legal recourse against the department or the department of motor vehicles regarding a notice issued by the department pursuant to this section and the referral by the department of any taxpayer with past-due tax liabilities to the depart- ment of motor vehicles pursuant to this section for the purpose of suspending the taxpayer's driver's license. A taxpayer may only chal- A. 2009--B 83 lenge such suspension or referral on the grounds that (i) the individual to whom the notice was provided is not the taxpayer at issue; (ii) the past-due tax liabilities were satisfied; (iii) the taxpayer's wages are being garnished by the department for the payment of the past-due tax liabilities at issue or for past-due child support or combined child and spousal support arrears; (iv) the taxpayer's wages are being garnished for the payment of past-due child support or combined child and spousal support arrears pursuant to an income execution issued pursuant to section five thousand two hundred forty-one of the civil practice law and rules; (v) the taxpayer's driver's license is a commercial driver's license as defined in section five hundred one-a of the vehicle and traffic law; [or] (vi) the department incorrectly found that the taxpay- er has failed to comply with the terms of a payment arrangement made with the commissioner more than once within a twelve month period for the purposes of subdivision three of this section; (VII) THE TAXPAYER RECEIVES PUBLIC ASSISTANCE OR SUPPLEMENTAL SECURITY INCOME; (VIII) THE TAXPAYER'S INCOME DOES NOT EXCEED TWO HUNDRED FIFTY PERCENT OF THE POVERTY LEVEL AS REPORTED BY THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES OR ANY SUCCESSOR AGENCY; OR (IX) PAYMENT OF THE PAST DUE TAX LIABILITIES WILL CREATE A HARDSHIP FOR THE TAXPAYER IN MEETING NECESSARY LIVING EXPENSES. However, nothing in this subdivision is intended to limit a taxpayer from seeking relief PURSUANT TO AN OFFER IN COMPROMISE PURSUANT TO SUBDIVISION FIFTEENTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS ARTICLE OR from joint and several liability pursuant to section six hundred fifty-four of this chapter, to the extent that he or she is eligible pursuant to [that subdivision] SUCH SECTION, or establishing to the department that the enforcement of the underlying tax liabilities has been stayed by the filing of a petition pursuant to the Bankruptcy Code of 1978 (Title Eleven of the United States Code). § 2. The commissioner of taxation and finance is authorized and directed to promulgate any rules and regulations necessary to implement the provisions of this act in accordance with the provisions of the state administrative procedure act. § 3. This act shall take effect immediately. PART AAA Intentionally Omitted PART BBB Section 1. The tax law is amended by adding a new section 1402-b to read as follows: § 1402-B. ADDITIONAL TRANSFER TAX ON CONVEYANCES FOR CONSIDERATION OF FIVE MILLION DOLLARS OR MORE. (A) IN ADDITION TO THE TAXES IMPOSED BY SECTIONS FOURTEEN HUNDRED TWO AND FOURTEEN HUNDRED TWO-A OF THIS ARTI- CLE, A TAX IS HEREBY IMPOSED ON EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THEREIN WHEN THE CONSIDERATION FOR THE ENTIRE CONVEYANCE IS FIVE MILLION DOLLARS OR MORE. THE RATE OF SUCH TAX SHALL BE THREE- TENTHS PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS NO LESS THAN FIVE MILLION DOLLARS BUT NO MORE THAN TEN MILLION DOLLARS. THE RATE OF SUCH TAX SHALL BE ONE-HALF PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS NO LESS THAN TEN MILLION DOLLARS BUT NO MORE A. 2009--B 84 THAN FIFTY MILLION DOLLARS. THE RATE OF SUCH TAX SHALL BE SEVEN-TENTHS PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS NO LESS THAN FIFTY MILLION DOLLARS BUT NO MORE THAN ONE HUNDRED MILLION DOLLARS. THE RATE OF SUCH TAX SHALL BE NINE-TENTHS PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE REAL PROPERTY WHEN SUCH CONSIDER- ATION FOR THE ENTIRE CONVEYANCE IS NO LESS THAN ONE HUNDRED MILLION DOLLARS BUT NO MORE THAN TWO HUNDRED AND FIFTY MILLION DOLLARS. THE RATE OF SUCH TAX SHALL BE ONE AND ONE-TENTH PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS NO LESS THAN TWO HUNDRED FIFTY MILLION DOLLARS BUT NO MORE THAN FIVE HUNDRED MILLION DOLLARS. THE RATE OF SUCH TAX SHALL BE ONE AND THREE-TENTHS PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS NO LESS THAN FIVE HUNDRED MILLION DOLLARS BUT NO MORE THAN ONE BILLION DOLLARS. THE RATE OF SUCH TAX SHALL BE ONE AND ONE-HALF PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS NO LESS THAN ONE BILLION DOLLARS. (B) THE TAXES, INTEREST, AND PENALTIES IMPOSED BY THIS SECTION 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 COMPTROLLER, TO THE CREDIT OF THE COMPTROLLER. 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 SECTION, THE COMPTROLLER SHALL RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS SECTION. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNT SHE OR HE RECEIVES UNDER THIS SECTION, BEFORE DEPOSIT INTO THE TRUST ACCOUNTS DESIGNATED BY THE 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 TAXES IMPOSED BY THIS SECTION. (C) 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 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. (D) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL THE PROVISIONS OF THIS ARTICLE RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION, DETERMINATION AND DISTRIBUTION OF THE TAX IMPOSED BY SECTION FOURTEEN HUNDRED TWO OF THIS ARTICLE SHALL APPLY TO THE TAX IMPOSED UNDER THE AUTHORITY OF THIS SECTION WITH SUCH MODIFICATIONS AS MAY BE NECESSARY TO ADAPT SUCH LANGUAGE TO THE TAX SO AUTHORIZED. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THOSE PROVISIONS HAD BEEN SET FORTH IN THIS SECTION EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR NOT RELEVANT TO THE TAX AUTHORIZED BY THIS SECTION. § 2. This act shall take effect April 1, 2019, and shall apply to conveyances occurring on or after the thirtieth day after this act shall have become a law. A. 2009--B 85 PART CCC Section 1. The real property tax law is amended by adding a new section 307-b to read as follows: § 307-B. ADDITIONAL PROPERTY TAX ON CERTAIN NON-PRIMARY RESIDENCE PROPERTIES IN A CITY WITH A POPULATION OF ONE MILLION OR MORE. 1. GENER- ALLY. NOTWITHSTANDING ANY PROVISION OF ANY GENERAL, SPECIFIC OR LOCAL LAW TO THE CONTRARY, ANY CITY WITH A POPULATION OF ONE MILLION OR MORE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IN ACCORDANCE WITH THIS SECTION IMPOSING AN ADDITIONAL PROPERTY TAX ON CERTAIN RESIDENTIAL PROPERTIES. 2. DEFINITIONS. AS USED IN THIS SECTION: (A) "COMMISSIONER OF FINANCE" MEANS THE COMMISSIONER OF FINANCE OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE, OR HIS OR HER DESIGNEE. (B) "DEPARTMENT OF FINANCE" MEANS THE DEPARTMENT OF FINANCE OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE. (C) "MARKET VALUE" SHALL MEAN THE CURRENT MONETARY VALUE OF THE PROP- ERTY, USING A COMPARABLE SALE-BASED VALUATION METHOD, AS DETERMINED BY THE DEPARTMENT OF FINANCE. 3. ADDITIONAL TAX. A LOCAL LAW ENACTED PURSUANT TO THIS SECTION MAY PROVIDE FOR A REAL PROPERTY TAX IN ACCORDANCE WITH THE FOLLOWING TABLE FOR FISCAL YEARS BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY: IF THE MARKET VALUE OF THE THE TAX IS: PROPERTY IS: OVER $5,000,000 BUT NOT $0 PLUS .5% OF EXCESS OVER $6,000,000 OVER $5,000,000 OVER $6,000,000 $5,000 PLUS 1% OF EXCESS BUT NOT OVER $10,000,000 OVER $6,000,000 OVER $10,000,000 BUT NOT $45,000 PLUS 1.5% OF EXCESS OVER $15,000,000 OVER $10,000,000 OVER $15,000,000 BUT NOT $120,000 PLUS 2% OF EXCESS OVER $20,000,000 OVER $15,000,000 OVER $20,000,000 BUT NOT $220,000 PLUS 3% OF EXCESS OVER $25,000,000 OVER $20,000,000 OVER $25,000,000 $370,000 PLUS 4% OF EXCESS OVER $25,000,000 4. PROPERTY SUBJECT TO ADDITIONAL TAX. SUCH TAX SHALL BE IMPOSED ON CLASS ONE PROPERTIES, AS THAT TERM IS DEFINED IN SECTION EIGHTEEN HUNDRED TWO OF THIS CHAPTER, EXCLUDING VACANT LAND, AND ALL OTHER RESI- DENTIAL REAL PROPERTY HELD IN CONDOMINIUM OR COOPERATIVE FORM OF OWNER- SHIP, THAT HAS A MARKET VALUE OF OVER FIVE MILLION DOLLARS AND IS NOT THE PRIMARY RESIDENCE OF THE OWNER OR OWNERS OF SUCH PROPERTY, OR THE PRIMARY RESIDENCE OF THE PARENT OR CHILD OF SUCH OWNER OR OWNERS. 5. PRIMARY RESIDENCE AND/OR RELATIONSHIP TO OWNER OR OWNERS. THE TAX SHALL BE A LIEN ON THE SUBJECT PROPERTY AND COLLECTED IN THE SAME MANNER AS ANY OTHER TAXES LEVIED ON REAL PROPERTY. PROOF OF PRIMARY RESIDENCE AND THE RESIDENT'S OR RESIDENTS' RELATIONSHIP TO THE OWNER OR OWNERS SHALL BE IN THE FORM OF A CERTIFICATION AS REQUIRED BY LOCAL LAW OR THE RULES OF THE COMMISSIONER. NOTWITHSTANDING THE FORMER, PROPERTY OWNERS WHO RECEIVE THE STAR EXEMPTION, OR OTHER EXEMPTION FROM REAL PROPERTY TAX ADMINISTERED BY THE DEPARTMENT OF FINANCE ON THE SUBJECT PROPERTY FOR WHICH PRIMARY RESIDENCY IS A REQUIREMENT, SHALL NOT BE REQUIRED TO FILE AN ADDITIONAL CERTIFICATION OF PROOF OF PRIMARY RESIDENCE. A. 2009--B 86 6. RULES. THE DEPARTMENT OF FINANCE OF ANY CITY ENACTING A LOCAL LAW PURSUANT TO THIS SECTION SHALL HAVE, IN ADDITION TO ANY OTHER FUNCTIONS, POWERS AND DUTIES WHICH HAVE BEEN OR MAY BE CONFERRED ON IT BY LAW, THE POWER TO MAKE AND PROMULGATE RULES TO CARRY OUT THE PURPOSES OF THIS SECTION INCLUDING, BUT NOT LIMITED TO, RULES RELATING THE TIMING, FORM AND MANNER OF ANY CERTIFICATION REQUIRED TO BE SUBMITTED UNDER THIS SECTION. 7. PENALTIES. (A) NOTWITHSTANDING ANY PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY, AN OWNER OR OWNERS SHALL BE PERSONALLY LIABLE FOR ANY TAXES OWED PURSUANT TO THIS SECTION WHENEVER SUCH OWNER OR OWNERS FAIL TO COMPLY WITH THIS SECTION OR THE LOCAL LAW OR RULES PROMULGATED THEREUNDER, OR MAKES SUCH FALSE OR MISLEADING STATEMENT OR OMISSION AND THE COMMISSIONER DETERMINES THAT SUCH ACT WAS DUE TO THE OWNER OR OWNERS' WILLFUL NEGLECT, OR THAT UNDER SUCH CIRCUM- STANCES SUCH ACT CONSTITUTED A FRAUD ON THE DEPARTMENT. THE REMEDY PROVIDED HEREIN FOR AN ACTION IN PERSONAM SHALL BE IN ADDITION TO ANY OTHER REMEDY OR PROCEDURE FOR THE ENFORCEMENT OF COLLECTION OF DELIN- QUENT TAXES PROVIDED BY ANY GENERAL, SPECIAL OR LOCAL LAW. (B) IF THE COMMISSIONER SHOULD DETERMINE, AFTER NOTICE AND AN OPPORTU- NITY TO BE HEARD, WITHIN THREE YEARS FROM THE FILING OF AN APPLICATION OR CERTIFICATION PURSUANT TO THIS SECTION, THAT THERE WAS A MATERIAL MISSTATEMENT ON SUCH APPLICATION OR CERTIFICATION, HE OR SHE SHALL PROCEED TO IMPOSE A PENALTY TAX AGAINST THE PROPERTY OF UP TO TEN THOU- SAND DOLLARS, IN ACCORDANCE WITH THE LOCAL LAW OR RULES PROMULGATED HEREUNDER. 8. CESSATION OF USE. IN THE EVENT THAT A PROPERTY THAT WAS NOT SUBJECT TO TAXATION PURSUANT TO THIS SECTION DUE TO THE PROPERTY HAVING BEEN THE PRIMARY RESIDENCE OF THE OWNER OR OWNERS, OR THE PRIMARY RESIDENCE OF THE PARENT OR CHILD OF SUCH OWNER OR OWNERS, AND SUCH PROPERTY CEASES TO BE USED AS THE PRIMARY RESIDENCE OF SUCH OWNER OR OWNERS OR HIS, HER OR THEIR PARENT OR CHILD, SUCH OWNER OR OWNERS SHALL SO NOTIFY THE COMMIS- SIONER OF FINANCE IN A TIME, FORM AND MANNER AS SO REQUIRED BY LOCAL LAW OR THE RULES OF THE COMMISSIONER. § 2. This act shall take effect immediately. PART DDD Section 1. Subparagraph (i) of the opening paragraph of section 1210 of the tax law is amended by adding a new clause 42 to read as follows: (42) THE COUNTY OF WESTCHESTER IS HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES OR RESOLUTIONS IMPOSING SUCH TAXES AT A RATE THAT IS ONE PERCENT ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH COUNTY FOR THE PERIOD BEGINNING MARCH FIRST, TWO THOUSAND NINETEEN AND ENDING NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-TWO; § 2. Section 1224 of the tax law is amended by adding a new subdivi- sion (jj) to read as follows: (JJ) THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE RIGHT TO IMPOSE THE ADDITIONAL ONE PERCENT RATE OF TAX WHICH SUCH COUNTY IS AUTHORIZED TO IMPOSE PURSUANT TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE. SUCH ADDITIONAL RATE OF TAX SHALL BE IN ADDITION TO ANY OTHER TAX WHICH SUCH COUNTY MAY IMPOSE OR MAY BE IMPOSING PURSUANT TO THIS ARTICLE OR ANY OTHER LAW AND SUCH ADDITIONAL RATE OF TAX SHALL NOT BE SUBJECT TO PREEMPTION. THE MAXIMUM THREE PERCENT RATE REFERRED TO IN THIS SECTION SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDITIONAL ONE PERCENT RATE OF TAX WHICH THE COUNTY OF WESTCHESTER IS AUTHORIZED AND A. 2009--B 87 EMPOWERED TO ADOPT PURSUANT TO SECTION TWELVE HUNDRED TEN OF THIS ARTI- CLE. § 3. Section 1262-b of the tax law, as amended by section 1 of part A of chapter 8 of the laws of 2004, is amended to read as follows: § 1262-b. The Westchester county property tax stabilization and relief act. (a) Notwithstanding any other provision of law to the contrary, if the county of Westchester imposes sales and compensating use taxes pursuant to [subdivision (a)] CLAUSE FORTY-TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH of section twelve hundred ten of this article at the rate of [three] FOUR percent: (1) The county shall allocate net collections from such taxes imposed at the rate of one and one-half percent countywide among the cities and towns of the county on the basis of the ratio which the full valuation of real property in each city or town bears to the aggregate full valu- ation of real property in all cities and towns of the county. Amounts so allocated shall be credited to each of said cities and towns against the county taxes levied upon real property in said cities and towns. (2) The county shall allocate and credit or pay net collections received by the county by reason of its additional one percent rate of such taxes on the area of the county outside any city imposing sales and compensating use taxes at a rate of one and one-half percent or greater pursuant to the authority of subdivision (a) or at any rate pursuant to the authority of [subdivision (b)] CLAUSE FORTY-TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH of section twelve hundred ten of this article as follows: (A) One-third of such net collections shall be allocated and credited in the manner set forth in paragraph one of this subdivision. (B) One-sixth of such net collections shall be allocated and paid quarterly by the county commissioner of finance, in cash, to the several school districts in such area of the county outside any such city impos- ing sales and compensating use taxes. Such allocation and payment, to such several school districts, shall be made on the basis of the ratio which the population of each such school district bears to the aggregate population of all of the school districts in such area. In the case of school districts which are partially within and partially without the county, or partially within or partially without the area of the county outside a city imposing sales and compensating use taxes, the allocation and payment to each such school district shall be made on the basis of the population in such school district in the county, or in such area of the county outside a city imposing sales and compensating use taxes, as the case may be. Such populations shall be determined in accordance with the latest federal census or special population census under section twenty of the general municipal law completed and published prior to the end of the quarter in which such allocation and payment are made, which special population census shall include the entire area of the county; provided that such special population census shall not be taken more than once in every two years. A school district split between Westches- ter county and another county shall apply such allocation and payment solely to the benefit of the residents of the county in which the sales and compensating use taxes are imposed. (C) One-half of such net collections shall be allocated and paid quar- terly by the county commissioner of finance, in cash, to the cities not imposing sales and compensating use taxes and to the towns and villages on which such additional one percent rate is imposed, on the basis of the ratio which the population of each such city, town or village on which such additional one percent rate is imposed bears to the entire A. 2009--B 88 population of all such cities, towns and villages in the area on which such additional one percent rate is imposed. Such populations shall be determined in accordance with the latest federal census or special popu- lation census under section twenty of the general municipal law completed and published prior to the end of the quarter in which such allocation is made, which special population census shall include the entire area of the county; provided that such special population census shall not be taken more than once in every two years. (D) The quarterly allocation and payment of cash to cities, towns, villages and school districts provided for under this paragraph and under paragraph three of this subdivision may be made after payment by the state comptroller to the county of the net collections subject to such allocation and receipt by the county commissioner of finance of the quarterly settlement report issued by the department, and may include adjustments for corrections applicable to such allocations. All ratios established by the county commissioner of finance with respect to allo- cations to cities, towns, villages and school districts under this subdivision shall be carried to four decimal places. The allocation of net collections and payment of cash provided for under this paragraph and under paragraph three of this subdivision shall be made to a town based upon the population of the town less the population of any village therein, provided that a town/village or village/town shall be deemed a village for the purpose of determining such allocation. The allocation of net collections and payment of cash provided for under this paragraph and under paragraph three of this subdivision shall be applied by the cities, towns, villages and school districts receiving such allocation and payment as a credit against the taxes upon real property imposed by such municipalities and school districts, respectively. The allocation and payment received by towns shall be credited against real property taxes in either the general fund town-wide or the town outside village fund or a combination thereof. (3) The county shall allocate and credit or pay net collections received by the county by reason of its additional ONE AND one-half percent rate of such taxes imposed on the area of the county outside any city imposing sales and compensating use taxes at a rate of one and one-half percent or greater pursuant to the authority of subdivision (a) or at any rate pursuant to the authority of subdivision (b) of section twelve hundred ten of this article as follows: (A) Seventy percent of such net collections shall be retained by the county to be used for any county purpose. (B) Ten percent of such net collections shall be allocated and paid in the manner set forth in subparagraph (B) of paragraph two of this subdi- vision. (C) Twenty percent of such net collections shall be allocated and paid in the manner set forth in subparagraph (C) of paragraph two of this subdivision. (b) Nothing in this section shall be construed to impair the powers of a city currently imposing sales and compensating use taxes pursuant to the authority of section twelve hundred ten of this article from contin- uing to do so in accordance with law. No school district in any city imposing such sales and compensating use taxes shall be entitled to receive a cash allocation and payment under paragraph two or three of subdivision (a) of this section. No city, town or village authorized or entitled to receive an allocation under subparagraph (C) of paragraph two or subparagraph (C) of paragraph three of subdivision (a) of this A. 2009--B 89 section shall be authorized or entitled to receive any cash allocation under section twelve hundred sixty-two of this article. § 4. Subdivision e of section 4 and sections 5, 7 and 16 of chapter 272 of the laws of 1991, amending the tax law relating to the method of disposition of sales and compensating use tax revenue in Westchester county and enacting the Westchester county spending limitation act, as amended by chapter 81 of the laws of 2017, are amended to read as follows: e. "Spending limitation" means the maximum amount of county spending established in county fiscal years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [and], 2020, 2021 AND 2022. § 5. Establishment of annual spending limitation. a. For county fiscal years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [and], 2020, 2021 AND 2022 there shall be in effect an annual spending limitation. The spending limitation shall be derived from a fixed percentage reflecting the ratio of base year spending to county personal income. County personal income for such calculation shall be for the period January 1, 1986 through December 31, 1986. Such percentage shall be applied to county personal income for the period January 1, 1989 through December 31, 1989, to determine the spending limitation for county fiscal year 1992; to determine the spend- ing limitation for county fiscal year 1993, such percentage shall be applied to county personal income for the period January 1, 1990 through December 31, 1990; to determine the spending limitation for county fiscal year 1994, such percentage shall be applied to county personal income for the period January 1, 1991 through December 31, 1991; to determine the spending limitation for county fiscal year 1995, such percentage shall be applied to county personal income for the period January 1, 1992 through December 31, 1992; to determine the spending limitation for county fiscal year 1996, such percentage shall be applied to county personal income for the period January 1, 1993 through Decem- ber 31, 1993; to determine the spending limitation for county fiscal year 1997, such percentage shall be applied to county personal income for the period January 1, 1994 through December 31, 1994; to determine the spending limitation for county fiscal year 1998, such percentage shall be applied to county personal income for the period January 1, 1995 through December 31, 1995; to determine the spending limitation for county fiscal year 1999, such percentage shall be applied to county personal income for the period January 1, 1996 through December 31, 1996; to determine the spending limitation for county fiscal year 2000, such percentage shall be applied to county personal income for the peri- od January 1, 1997 through December 31, 1997; to determine the spending limitation for county fiscal year 2001, such percentage shall be applied to county personal income for the period January 1, 1998 through Decem- ber 31, 1998; to determine the spending limitation for county fiscal year 2002, such percentage shall be applied to county personal income for the period January 1, 1999 through December 31, 1999; to determine the spending limitation for county fiscal year 2003, such percentage shall be applied to county personal income for the period January 1, 2000 through December 31, 2000; to determine the spending limitation for county fiscal year 2004, such percentage shall be applied to county personal income for the period January 1, 2001 through December 31, 2001; to determine the spending limitation for county fiscal year 2005, A. 2009--B 90 such percentage shall be applied to county personal income for the peri- od January 1, 2002 through December 31, 2002; to determine the spending limitation for county fiscal year 2006, such percentage shall be applied to county personal income for the period January 1, 2003 through Decem- ber 31, 2003; to determine the spending limitation for the county fiscal year 2007, such percentage shall be applied to county personal income for the period January 1, 2004 through December 31, 2004; to determine the spending limitation for the county fiscal year 2008, such percentage shall be applied to county personal income for the period January 1, 2005 through December 31, 2005; to determine the spending limitation for the county fiscal year 2009, such percentage shall be applied to county personal income for the period January 1, 2006 through December 31, 2006; to determine the spending limitation for the county fiscal year 2010, such percentage shall be applied to county personal income for the period January 1, 2007 through December 31, 2007; to determine the spending limitation for the county fiscal year 2011, such percentage shall be applied to county personal income for the period January 1, 2008 through December 31, 2008; to determine the spending limitation for the county fiscal year 2012, such percentage shall be applied to county personal income for the period January 1, 2009 through December 31, 2009; to determine the spending limitation for the county fiscal year 2013, such percentage shall be applied to county personal income for the period January 1, 2010 through December 31, 2010; to determine the spending limitation for the county fiscal year 2014, such percentage shall be applied to county personal income for the period January 1, 2011 through December 31, 2011; to determine the spending limitation for the county fiscal year 2015, such percentage shall be applied to county personal income for the period January 1, 2012 through December 31, 2012; to determine the spending limitation for county fiscal year 2016, such percentage shall be applied to the county personal income for the period January 1, 2013 through December 31, 2013; to determine the spending limitation for the county fiscal year 2017, such percentage shall be applied to county personal income for the period January 1, 2014 through December 31, 2014; and to determine the spending limitation for county fiscal year 2018, such percentage shall be applied to the county personal income for the period January 1, 2015 through December 31, 2015; to determine the spending limitation for the county fiscal year 2019, such percentage shall be applied to county personal income for the period January 1, 2016 through December 31, 2016; and to deter- mine the spending limitation for county fiscal year 2020, such percent- age shall be applied to the county personal income for the period Janu- ary 1, 2017 through December 31, 2017; AND TO DETERMINE THE SPENDING LIMITATION FOR THE COUNTY FISCAL YEAR 2021, SUCH PERCENTAGE SHALL BE APPLIED TO COUNTY PERSONAL INCOME FOR THE PERIOD JANUARY 1, 2018 THROUGH DECEMBER 31, 2018; AND TO DETERMINE THE SPENDING LIMITATION FOR THE COUNTY FISCAL YEAR 2022, SUCH PERCENTAGE SHALL BE APPLIED TO COUNTY PERSONAL INCOME FOR THE PERIOD JANUARY 1, 2019 THROUGH DECEMBER 31, 2019. b. The spending limitation shall serve as a statutory cap on county spending to be reflected in the tentative budget as well as the enacted budget for county fiscal years beginning in 1992. § 7. Mandatory tax reduction. In the event that the county spending subject to the spending limitation exceeds such limitation in the adop- tive county budget for county fiscal year 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, A. 2009--B 91 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [or], 2020, 2021 OR 2022 then section 1262-b of the tax law shall be repealed. § 16. This act shall take effect immediately, provided, however, that sections one through seven of this act shall be in full force and effect until [May 31, 2020, provided, however, that if the county of Westches- ter imposes the tax authorized by section 1210 of the tax law in excess of three percent, then sections one through seven of this act shall be deemed repealed; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission upon the repeal of section 1262-b of the tax law pursuant to section seven of the Westches- ter county spending limitation act in order that the commission may maintain an accurate and timely effective data base of the official text of laws of the state of New York in furtherance of effecting the provisions of section 44 of the legislative law and section 70-b of the public officers law] NOVEMBER 30, 2022. § 5. This act shall take effect immediately; provided that the amend- ments to section 1262-b of the tax law made by section three of this act shall not affect the expiration of such section and shall expire there- with; provided, further, that the amendments to sections 4, 5, and 7 of chapter 272 of the laws of 1991 shall not affect the expiration of such sections and shall expire therewith. PART EEE 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 SUBDIVI- SION, 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) A. 2009--B 92 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) "JOBS CREATED" MEANS THE NUMBER OF PERSONS EMPLOYED BY A RURAL BUSINESS CONCERN HAVING RECEIVED A GROWTH INVESTMENT FROM A RURAL BUSI- NESS GROWTH FUND DURING THE TAXABLE YEAR WHICH SHALL BE DETERMINED BY ASCERTAINING THE NUMBER OF SUCH INDIVIDUALS EMPLOYED FULL-TIME BY SUCH RURAL BUSINESS CONCERN ON THE THIRTY-FIRST DAY OF MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY OF DECEMBER DURING EACH TAXABLE YEAR FOLLOWING ITS INITIAL GROWTH INVEST- MENT, BY ADDING TOGETHER THE NUMBER OF SUCH INDIVIDUALS ASCERTAINED ON EACH OF SUCH DATES AND DIVIDING THE SUM SO OBTAINED BY THE NUMBER OF DATES OCCURRING WITHIN SUCH TAXABLE YEAR IN THE AMOUNT THAT SUCH NUMBER EXCEEDS THE JOBS RETAINED NUMBER. AN INDIVIDUAL EMPLOYED FULL-TIME MEANS AN EMPLOYEE IN A JOB CONSISTING OF AT LEAST THIRTY-FIVE HOURS PER WEEK, OR TWO OR MORE EMPLOYEES WHO ARE IN JOBS THAT TOGETHER CONSTITUTE THE EQUIVALENT OF A JOB OF AT LEAST THIRTY-FIVE HOURS PER WEEK. (6) "JOBS RETAINED" MEANS THE NUMBER OF PERSONS EMPLOYED BY A RURAL BUSINESS CONCERN HAVING RECEIVED A GROWTH INVESTMENT FROM A RURAL BUSI- NESS GROWTH FUND DURING THE TAXABLE YEAR WHICH SHALL BE DETERMINED BY ASCERTAINING THE NUMBER OF SUCH INDIVIDUALS EMPLOYED FULL-TIME BY SUCH RURAL BUSINESS CONCERN ON THE THIRTY-FIRST DAY OF MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY OF DECEMBER DURING THE YEAR IN WHICH THE RURAL BUSINESS CONCERN RECEIVED ITS INITIAL GROWTH INVESTMENT FROM A RURAL BUSINESS GROWTH FUND, BY ADDING TOGETHER THE NUMBER OF SUCH INDIVIDUALS ASCERTAINED ON EACH OF SUCH DATES AND DIVIDING THE SUM SO OBTAINED BY THE NUMBER OF DATES OCCURRING WITHIN SUCH TAXABLE YEAR. AN INDIVIDUAL EMPLOYED FULL-TIME MEANS AN EMPLOYEE IN A JOB CONSISTING OF AT LEAST THIRTY-FIVE HOURS PER WEEK, OR TWO OR MORE EMPLOYEES WHO ARE IN JOBS THAT TOGETHER CONSTITUTE THE EQUIVALENT OF A JOB OF AT LEAST THIRTY-FIVE HOURS PER WEEK. (7) A BUSINESS'S "PRINCIPAL BUSINESS OPERATIONS" ARE IN NEW YORK STATE IF NEW YORK STATE IS ITS PRINCIPAL PLACE OF BUSINESS AND AT LEAST EIGHTY PERCENT OF THE BUSINESS'S EMPLOYEES WORK IN NEW YORK STATE, OR THE BUSI- NESS HAS AGREED TO USE THE PROCEEDS OF A RURAL GROWTH INVESTMENT TO RELOCATE AT LEAST EIGHTY PERCENT OF ITS EMPLOYEES TO NEW YORK STATE WITHIN TWELVE MONTHS OF RECEIVING THE INVESTMENT BY A RURAL BUSINESS GROWTH FUND. (8) "RURAL AREA" SHALL HAVE THE SAME MEANING AS DEFINED IN SUBDIVISION SEVEN OF SECTION FOUR HUNDRED EIGHTY-ONE OF THE EXECUTIVE LAW. (9) "RURAL BUSINESS CONCERN" MEANS AN OPERATING COMPANY THAT, AT THE TIME OF THE INITIAL INVESTMENT IN THE COMPANY BY A RURAL BUSINESS GROWTH FUND EMPLOYS NO MORE THAN ONE HUNDRED FIFTY FULL-TIME EQUIVALENT EMPLOY- EES OR HAS EARNED NOT MORE THAN TEN 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 IN NEW YORK STATE AND IS AN AGRICULTURAL ENTERPRISE OR IS RELATED TO THE USE OF AGRICULTURAL PRODUCTS OR FOREST PRODUCTS, OR IS AN ENTERPRISE IN ONE OF THE FOLLOWING INDUSTRIES: MANUFACTURING, COMPUTER HARDWARE OR SOFTWARE, TOURISM, AGRIBUSINESS DEVELOPMENT TO STIMULATE THE DEVELOPMENT AND IMPLEMENTATION OF NEW AND ALTERNATIVE PRODUCTION, PROC- ESSING, STORAGE, DISTRIBUTION AND MARKETING TECHNOLOGY AND IMPROVEMENTS FOR NEW YORK FOOD, AGRICULTURE AND FOREST PRODUCTS OR IF NOT ENGAGED IN ANY OF THESE INDUSTRIES, THE DEPARTMENT DETERMINES THAT THE INVESTMENT WILL BE BENEFICIAL TO THE QUALIFIED LOCATION AND THE ECONOMIC GROWTH OF NEW YORK STATE; OR A. 2009--B 93 (B) THE BUSINESS PRODUCES OR PROVIDES ANY GOODS PRINCIPALLY USED BY FARMERS, RANCHERS, OR PRODUCERS AND HARVESTERS OF AQUATIC PRODUCTS IN THEIR BUSINESS OPERATIONS, OR IS INVOLVED IN THE PROCESSING AND MARKET- ING OF AGRICULTURAL PRODUCTS, FARM SUPPLY, AND INPUT SUPPLIERS, PROVIDED THAT SUCH BUSINESS IS LOCATED IN A MUNICIPALITY, AS DEFINED IN SECTION FOUR HUNDRED EIGHTY-ONE OF THE EXECUTIVE LAW, IN NEW YORK STATE WITH A POPULATION OF LESS THAN FIFTY THOUSAND. 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 QUALIFY AS A RURAL GROWTH INVESTMENT PROVIDED IT OTHERWISE MEETS THE DEFINITION OF RURAL BUSINESS CONCERN WITH THE EXCEPTION OF THE EMPLOYEE LIMITATION AND NET INCOME LIMITATION IN SUCH DEFINITION. (10) "RURAL BUSINESS GROWTH FUND" MEANS AN ENTITY CERTIFIED BY THE DEPARTMENT UNDER THIS SECTION. (11) "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. (12) "TAX CREDIT CERTIFICATE" MEANS THE DOCUMENT ISSUED BY THE DEPART- MENT TO A TAXPAYER WHO HAS MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO A RURAL BUSINESS GROWTH FUND. (13) "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. (14) "DEPARTMENT", AS USED IN THIS SECTION, MEANS THE DEPARTMENT OF ECONOMIC DEVELOPMENT. (B) CERTIFICATION. (1) ON AND AFTER AUGUST FIRST, TWO THOUSAND NINE- 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 THAT THE APPLI- CANT MEETS ALL OF THE FOLLOWING CRITERIA: (I) THE APPLICANT OR AN AFFIL- IATE 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 IN RURAL AREAS LOCATED INSIDE OR OUTSIDE OF NEW YORK STATE AND AT LEAST TWENTY-FIVE MILLION DOLLARS IN OPERATING COMPANIES LOCATED IN NEW YORK STATE. IN COMPUTING INVESTMENTS UNDER THIS SUBDIVISION, THE APPLICANT MAY INCLUDE INVESTMENTS MADE BY AFFILIATES OF THE APPLICANT. (C) AN ESTIMATE OF THE NUMBER OF (I) JOBS THAT WILL BE CREATED IN THE RURAL AREAS OF NEW YORK STATE AS A RESULT OF THE APPLICANT'S RURAL GROWTH INVESTMENTS, (II) JOBS THAT WILL BE RETAINED IN THE RURAL AREAS OF NEW YORK STATE AS A RESULT OF THE APPLICANTS RURAL GROWTH INVEST- MENTS, AND (III) THE ANTICIPATED AVERAGE WAGE PER JOB. A. 2009--B 94 (D) A REVENUE IMPACT ASSESSMENT FOR THE APPLICANT'S PROPOSED RURAL GROWTH INVESTMENTS PREPARED BY A NATIONALLY RECOGNIZED THIRD-PARTY INDE- PENDENT ECONOMIC FORECASTING FIRM USING A DYNAMIC ECONOMIC FORECASTING MODEL. THE REVENUE IMPACT ASSESSMENT SHALL ANALYZE THE APPLICANT'S BUSINESS PLAN OVER THE TEN YEARS FOLLOWING THE DATE THE APPLICATION IS SUBMITTED TO THE DEPARTMENT. (E) A SIGNED AFFIDAVIT FROM EACH INVESTOR SUCCESSFULLY SOLICITED BY THE APPLICANT TO MAKE A CREDIT ELIGIBLE CAPITAL CONTRIBUTION IN SUPPORT OF THE BUSINESS PLAN. EACH AFFIDAVIT SHALL INCLUDE INFORMATION SUFFI- CIENT FOR THE DEPARTMENT 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. (G) A STRATEGY, AS PART OF ITS BUSINESS PLAN, TO MAKE REASONABLE EFFORTS TO INVEST IN BUSINESSES THAT ARE ENVIRONMENTALLY SENSITIVE AND UTILIZE RESOURCES THAT PROMOTE A CLEAN ENVIRONMENT AND ENERGY CONSERVA- TION. (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 MAKE DETERMINATIONS ON THE APPLICATIONS IN THE ORDER IN WHICH THE APPLICATIONS ARE RECEIVED BY THE DEPARTMENT. APPLICATIONS RECEIVED BY THE DEPARTMENT ON THE SAME DAY SHALL BE DEEMED TO HAVE BEEN RECEIVED SIMULTANEOUSLY. 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 CREDIT ELIGIBLE CAPITAL CONTRIBUTIONS 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- A. 2009--B 95 TION, THE APPLICATION IS APPROVED, 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 APPLICA- TION WITH A NEW SUBMISSION DATE AT ANY TIME. (5) IF APPROVING MULTIPLE SIMULTANEOUSLY SUBMITTED APPLICATIONS WOULD RESULT IN EXCEEDING THE OVERALL ELIGIBLE INVESTMENT LIMIT PRESCRIBED BY PARAGRAPH TWO OF THIS SUBDIVISION, THE DEPARTMENT SHALL PROPORTIONALLY REDUCE THE ELIGIBLE INVESTMENT AUTHORITY AND THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS FOR EACH APPROVED APPLICATION AS NECESSARY TO AVOID EXCEEDING THE LIMIT. (6) IF THE DEPARTMENT APPROVES SUCH APPLICATION, THE DEPARTMENT SHALL: (A) ISSUE 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 AND THE NUMBER OF JOBS CREATED AND JOBS RETAINED REQUIRED OF THE RURAL BUSINESS GROWTH FUND DETERMINED BY MULTI- PLYING THE ESTIMATED NUMBER OF JOBS CREATED AND JOBS RETAINED SET FORTH IN THE RURAL BUSINESS GROWTH FUND'S APPLICATION BY A FRACTION, THE NUMERATOR OF WHICH IS THE INVESTMENT AUTHORITY AWARDED TO THE RURAL BUSINESS GROWTH FUND AND THE DENOMINATOR OF WHICH IS THE INVESTMENT AUTHORITY FOR WHICH THE RURAL BUSINESS GROWTH FUND APPLIED; (B) TO EACH INVESTOR WHOSE AFFIDAVIT WAS INCLUDED IN THE APPLICATION, ISSUE A TAX CREDIT CERTIFICATE SPECIFYING THE AMOUNT OF THE INVESTOR'S CREDIT-ELIGI- BLE CAPITAL CONTRIBUTION; AND (C) TO THE COMMISSIONER, 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 WRITTEN NOTICE ISSUED UNDER PARAGRAPH SIX OF THIS SUBDIVISION: (A) COLLECT THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS FROM EACH INVES- TOR WHOSE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS ARE DESCRIBED IN AFFIDA- VITS SUBMITTED PURSUANT TO SUBPARAGRAPH (E) OF PARAGRAPH ONE 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. A. 2009--B 96 (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-FF OF THE STATE FINANCE LAW. (C) REVOCATION OF CERTIFICATION AND PENALTIES. (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 BUSI- NESS GROWTH FUND BEFORE THE FUND EXITS THE PROGRAM UNDER PARAGRAPH FIVE OF THIS SUBDIVISION. (A) THE RURAL BUSINESS GROWTH FUND IN WHICH THE CREDIT-ELIGIBLE CAPI- TAL CONTRIBUTION WAS MADE DOES NOT INVEST SIXTY PERCENT OF ITS ELIGIBLE INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE WITHIN TWO YEARS OF THE CLOSING DATE AND ONE HUNDRED PERCENT OF ITS ELIGIBLE INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE WITHIN THREE YEARS OF THE CLOSING DATE. (B) AFTER INVESTING ONE HUNDRED PERCENT OF ITS ELIGIBLE INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE, THE RURAL BUSINESS GROWTH FUND FAILS TO MAINTAIN THAT INVESTMENT UNTIL THE SEVENTH ANNIVER- SARY OF THE CLOSING DATE. FOR THE PURPOSES OF THIS SECTION, AN INVEST- MENT 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, EXCLU- SIVE OF ANY PROFITS REALIZED, 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 SEVENTH ANNIVERSARY OF THE CLOSING DATE, AND SUCH RURAL GROWTH INVESTMENTS SHALL BE CONSIDERED HELD CONTIN- UOUSLY BY THE RURAL GROWTH FUND THROUGH THE SEVENTH ANNIVERSARY OF THE CLOSING DATE. (C) THE RURAL BUSINESS GROWTH FUND INVESTS MORE THAN THE GREATER OF FIVE MILLION 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 REIN- VESTED 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. A. 2009--B 97 (3) IF THE DEPARTMENT REVOKES A TAX CREDIT CERTIFICATE UNDER PARAGRAPH ONE OF THIS SUBDIVISION, IT SHALL NOTIFY THE COMMISSIONER, WHO SHALL MAKE AN ASSESSMENT FOR THE AMOUNT OF THE CREDIT CLAIMED BY THE CERTIF- ICATE HOLDER BEFORE THE CERTIFICATE WAS REVOKED. THE COMMISSIONER SHALL MAKE THE ASSESSMENT WITHIN ONE YEAR AFTER THE CERTIFICATE HAS BEEN REVOKED. (4) IF TAX CREDIT CERTIFICATES ARE REVOKED UNDER PARAGRAPH ONE OF THIS SUBDIVISION, THE ASSOCIATED ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-EL- IGIBLE CAPITAL CONTRIBUTIONS DO NOT COUNT TOWARD THE LIMIT ON TOTAL ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS DESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (B) OF THIS SECTION. THE DEPARTMENT SHALL FIRST AWARD REVERTED AUTHORITY PRO RATA TO EACH RURAL BUSINESS GROWTH FUND THAT WAS AWARDED LESS THAN THE REQUESTED ELIGIBLE INVESTMENT AUTHORITY UNDER PARAGRAPH FIVE OF SUBDIVISION (B) OF THIS SECTION. ANY REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE AWARDED BY THE DEPARTMENT TO NEW APPLICANTS. (5) (A) ON OR AFTER THE SEVENTH 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 DEPART- MENT 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 APPLICA- TION 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) A RURAL BUSINESS GROWTH FUND IS SUBJECT TO A PENALTY IN THE AMOUNT PROVIDED BY PARAGRAPH SEVEN OF THIS SUBDIVISION IF: (A) THE RURAL BUSINESS GROWTH FUND AUTHORIZES A DISTRIBUTION TO THE RURAL BUSINESS GROWTH FUND'S EQUITY OR DEBT HOLDERS IN AN AMOUNT THAT, WHEN ADDED TO ALL PREVIOUS DISTRIBUTIONS TO THE RURAL BUSINESS GROWTH FUND'S EQUITY AND DEBT HOLDERS AND ANY PREVIOUS PENALTIES UNDER THIS SECTION, EXCEEDS THE RURAL BUSINESS GROWTH FUND'S INVESTMENT AUTHORITY; AND (B) THE NUMBER OF JOBS CREATED AND JOBS RETAINED AS REPORTED IN EACH OF THE ANNUAL REPORTS SUBMITTED UNDER PARAGRAPH ONE OF SUBDIVISION (D) OF THIS SECTION IS LESS THAN THE NUMBER OF JOBS CREATED AND JOBS RETAINED AS SET FORTH IN THE RURAL BUSINESS GROWTH FUND'S NOTICE OF APPROVAL PURSUANT TO SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B) OF THIS SECTION. (7) THE AMOUNT OF THE PENALTY PURSUANT TO PARAGRAPH SIX OF THIS SUBDI- VISION SHALL BE EQUAL TO THE AMOUNT OF THE TAX CREDIT CERTIFICATE ISSUED UNDER SUBPARAGRAPH (B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF THIS SECTION MULTIPLIED BY A FRACTION: (A) THE NUMERATOR OF WHICH IS THE NUMBER OF JOBS CREATED AND JOBS RETAINED SET FORTH IN THE RURAL BUSINESS GROWTH FUND'S NOTICE OF APPROVAL UNDER SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B) OF A. 2009--B 98 THIS SECTION LESS THE SUM OF JOBS CREATED AND JOBS RETAINED REPORTED TO THE DEPARTMENT ANNUALLY PURSUANT TO PARAGRAPH ONE OF SUBDIVISION (D) OF THIS SECTION; AND (B) THE DENOMINATOR OF WHICH IS THE NUMBER OF JOBS CREATED AND JOBS RETAINED SET FORTH IN THE RURAL BUSINESS GROWTH FUND'S NOTICE OF APPROVAL UNDER SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B) OF THIS SECTION. (8) BEFORE MAKING A DISTRIBUTION TO THE RURAL BUSINESS GROWTH FUND'S EQUITY HOLDERS, THE RURAL BUSINESS GROWTH FUND SHALL DEDUCT THE AMOUNT OF THE PENALTY AS CALCULATED PURSUANT TO PARAGRAPH SEVEN OF THIS SUBDI- VISION FROM THE AMOUNT OTHERWISE AUTHORIZED TO BE DISTRIBUTED TO THE EQUITY HOLDERS AND PAY THE PENALTY TO THE DEPARTMENT. (9) A RURAL BUSINESS GROWTH FUND SHALL, 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. SUCH REQUEST SHALL BE IN A FORM PRESCRIBED BY THE DEPARTMENT. RURAL BUSINESS CONCERN DETERMINATION REQUESTS SHALL BE ACCEPTED, REVIEWED, AND APPROVED ON A ROLLING BASIS. THE DEPARTMENT, NOT LATER THAN THE TWENTIETH BUSINESS DAY AFTER THE DATE OF RECEIPT OF SUCH REQUEST, PROVIDED THE REQUEST INCLUDES ALL OF THE REQUIRED INFORMA- TION TO PERFORM SUCH REVIEW, SHALL NOTIFY THE RURAL BUSINESS GROWTH FUND OF ITS DETERMINATION. IF THE DEPARTMENT FAILS TO NOTIFY SUCH FUND OF ITS DETERMINATION WITHIN SUCH TWENTY BUSINESS DAYS, THE BUSINESS IN WHICH THE RURAL BUSINESS GROWTH FUND PROPOSES TO INVEST SHALL BE DEEMED TO QUALIFY AS A RURAL BUSINESS CONCERN. (D) REPORTS. (1) A RURAL BUSINESS GROWTH FUND SHALL SUBMIT A REPORT TO THE DEPARTMENT ON OR BEFORE THE FIFTH BUSINESS DAY AFTER EACH ANNIVER- SARY OF THE CLOSING DATE UNTIL THE RURAL BUSINESS GROWTH FUND HAS EXITED THE PROGRAM IN ACCORDANCE WITH PARAGRAPH FIVE OF SUBDIVISION (C) OF THIS SECTION. THE REPORT SHALL DOCUMENT THE RURAL BUSINESS GROWTH FUND'S GROWTH INVESTMENTS AND SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO: (A) A BANK STATEMENT SHOWING EACH RURAL GROWTH INVESTMENT; (B) THE NAME, LOCATION, AND INDUSTRY OF EACH RURAL BUSINESS CONCERN RECEIVING A RURAL GROWTH INVESTMENT, INCLUDING EITHER THE DETERMINATION NOTICE DESCRIBED BY PARAGRAPH NINE OF SUBDIVISION (C) OF THIS SECTION OR EVIDENCE THAT SUCH DETERMINATION WAS REQUESTED AND NO NOTICE WAS PROVIDED; (C) THE NUMBER OF JOBS CREATED AND JOBS RETAINED IN THE PRECEDING TWELVE MONTH REPORTING PERIOD AS A RESULT OF THE RURAL BUSINESS GROWTH FUND'S RURAL GROWTH INVESTMENTS AS OF THE LAST DAY OF THAT PERIOD; (D) THE AVERAGE ANNUAL SALARY OF THE JOBS DESCRIBED BY SUBPARAGRAPH (C) OF THIS PARAGRAPH; AND (E) ANY OTHER INFORMATION DEEMED PERTINENT BY THE RURAL BUSINESS GROWTH FUND OR REQUIRED BY THE DEPARTMENT. (2) 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. THE CREDIT MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY OTHER THAN AN AFFILIATE OF THE TAXPAYER. A. 2009--B 99 (2) THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE FIFTH ANNIVERSARY OF THE CLOSING DATE AND UP TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE SIXTH AND SEVENTH ANNIVERSARIES OF THE CLOSING DATE IN CONNECTION WITH THE CERTIFICATE ISSUED, 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. 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. 2. THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE FIFTH ANNIVERSARY OF THE CLOSING DATE AND UP TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE SIXTH AND SEVENTH ANNIVERSARIES OF THE CLOSING DATE IN CONNECTION WITH THE CERTIFICATE ISSUED, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO SUBDIVISION THREE OF THIS SECTION. IN NO EVENT SHALL THE CREDIT UNDER THIS SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE. 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. 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) ALLOWANCE OF CREDIT. 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 ARTICLE. THE CREDIT MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY OTHER THAN AN AFFILIATE OF THE TAXPAYER. (2) AMOUNT OF CREDIT CLAIMED. THE TAXPAYER MAY CLAIM UP TO TWENTY- FIVE PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE FIFTH ANNIVER- SARY OF THE CLOSING DATE AND UP TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE SIXTH AND SEVENTH ANNIVERSARIES OF THE CLOSING DATE IN CONNECTION WITH THE CERTIFICATE ISSUED, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION. (3) 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 A. 2009--B 100 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 IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, FURTHER, NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE PAID THERE- ON. § 5. The state finance law is amended by adding a new section 99-ff to read as follows: § 99-FF. 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 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 July 1, 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 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 EEE of this act shall be as specifically set forth in the last section of such Parts.
2019-A2009C (ACTIVE) - Details
- See Senate Version of this Bill:
- S1509
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2019-A2009C (ACTIVE) - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2019-2020 state fiscal year; relates to the effectiveness of provisions relating to mandatory electronic filing of tax documents (Part A); relates to amending the employee training incentive program (Part B); relates to including in the apportionment fraction receipts constituting net global intangible low-taxed income (Part C)
2019-A2009C (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 1509--C A. 2009--C S E N A T E - A S S E M B L Y January 18, 2019 ___________ 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, in relation to the effective- ness of provisions relating to mandatory electronic filing of tax documents (Part A); to amend the economic development law, in relation to the employee training incentive program (Part B); to amend the tax law and the administrative code of the city of New York, in relation to including in the apportionment fraction receipts constituting net global intangible low-taxed income (Part C); to amend the tax law and the administrative code of the city of New York, in relation to the adjusted basis for property used to determine whether a manufacturer is a qualified New York manufacturer (Part D); to amend part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program, in relation to extending the effectiveness thereof (Part E); to amend the tax law in relation to the inclusion in a decedent's New York gross estate any qualified terminable interest property for which a prior deduction was allowed and certain pre-death gifts (Part F); to amend the tax law, in relation to requiring marketplace providers to collect sales tax; and to amend the state finance law, in relation to
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12574-05-9 S. 1509--C 2 A. 2009--C establishing the New York central business district trust fund (Part G); to amend the tax law, in relation to eliminating the reduced tax rates under the sales and use tax with respect to certain gas and electric service; and to repeal certain provisions of the tax law and the administrative code of the city of New York related thereto (Part H); to amend the real property tax law, in relation to the determi- nation and use of state equalization rates (Part I); intentionally omitted (Subpart A); to amend the real property tax law, in relation to authorizing agreements for assessment review services (Subpart B); to amend the real property tax law, in relation to the training of assessors and county directors of real property tax services (Subpart C); to amend the real property tax law, in relation to providing certain notifications electronically (Subpart D); to amend the real property tax law, in relation to the valuation and taxable status dates of special franchise property (Subpart E); and to amend the real property tax law, in relation to the reporting requirements of power plants (Subpart F) (Part J); to repeal section 3-d of the general municipal law, relating to certification of compliance with tax levy limit (Part K); to amend the tax law, in relation to creating an employer-provided child care credit (Part L); to amend the tax law, in relation to including gambling winnings in New York source income and requiring withholding thereon (Part M); to amend the tax law, in relation to the farm workforce retention credit (Part N); to amend the tax law, in relation to updating tax preparer penalties; to amend part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related information and relating to the voluntary compliance initiative, in relation to the effectiveness thereof; and to repeal certain provisions of the tax law, relating to tax preparer penalties (Part O); to amend the tax law, in relation to extending the top personal income tax rate for five years (Part P); to amend the tax law and the administrative code of the city of New York, in relation to extending for five years the limitations on itemized deductions for individuals with incomes over one million dollars (Part Q); to amend the tax law, in relation to extending the clean heating fuel credit for three years (Part R); to amend subdivision (e) of section 23 of part U of chapter 61 of the laws of 2011 amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, in relation to extending the provisions thereof (Part S); to amend the cooperative corporations law and the rural electric cooperative law, in relation to eliminating certain license fees (Part T); to amend the tax law, in relation to a credit for the rehabilitation of historic properties for state owned property leased to private entities (Part U); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part V); to amend the mental hygiene law and the tax law, in relation to the creation and administration of a tax cred- it for employment of eligible individuals in recovery from a substance use disorder (Part W); to amend the tax law and the administrative code of the city of New York, in relation to excluding from entire net income certain contributions to the capital of a corporation (Part X); intentionally omitted (Part Y); to amend the tax law, the administra- tive code of the city of New York, and chapter 369 of the laws of 2018 amending the tax law relating to unrelated business taxable income of a taxpayer, in relation to making technical corrections thereto (Part Z); to amend the real property tax law, in relation to tax exemptions for energy systems (Part AA); to amend the racing, pari-mutuel wager- S. 1509--C 3 A. 2009--C ing and breeding law, in relation to pre-employment restrictions for certain prospective employees of the state gaming commission (Part BB); intentionally omitted (Part CC); intentionally omitted (Subpart A); to amend the racing, pari-mutuel wagering and breeding law, in relation to appointees to the thoroughbred breeding and development fund (Subpart B); to amend the racing, pari-mutuel wagering and breed- ing law, in relation to acquisition of funds for the Harry M. Zweig memorial fund (Subpart C); and to amend the tax law, in relation to the prize payment amounts and revenue distributions of lottery game sales, and use of unclaimed prize funds (Subpart D)(Part DD); 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 EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to the deductibility of promo- tional credits (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to the operations of off-track betting corporations (Part GG); 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 extend- ing certain provisions thereof (Part HH); intentionally omitted (Part II); to amend part EE of chapter 59 of the laws of 2018, amending the racing, pari-mutuel wagering and breeding law, relating to adjusting the franchise payment establishing an advisory committee to review the structure, operations and funding of equine drug testing and research, in relation to the date of delivery for recommendations; and to amend the racing, pari-mutuel wagering and breeding law, in relation to the advisory committee on equine drug testing, and equine lab testing provider restrictions removal (Part JJ); intentionally omitted (Part KK); to amend the real property tax law and the tax law, in relation to the determination of STAR tax savings (Part LL); to amend the tax law, in relation to cooperative housing corporation information returns (Part MM); to amend the tax law, in relation to making a tech- nical correction to the enhanced real property tax circuit breaker credit (Part NN); to amend the real property law and the tax law, in relation to mobile home reporting requirements (Part OO); to amend the real property tax law and the tax law, in relation to eligibility for STAR exemptions and credits (Part PP); to amend the real property tax law and the tax law, in relation to authorizing the disclosure of certain information to assessors (Part QQ); to amend the real property tax law and the tax law, in relation to the income limits for STAR benefits (Part RR); to amend the real property tax law, in relation to clarifying certain notices on school tax bills (Part SS); to amend the real property tax law and the tax law, in relation to making the STAR program more accessible to taxpayers (Part TT); to amend the tax law, in relation to imposing a supplemental tax on vapor products; and to amend the state finance law, in relation to adding revenues from the supplemental tax on vapor products to the health care reform act S. 1509--C 4 A. 2009--C resource fund (Part UU); intentionally omitted (Part VV); to amend the tax law, in relation to imposing a special tax on passenger car rentals outside of the metropolitan commuter transportation district (Part WW); to amend the tax law, in relation to imposing a tax on opioids; and to amend part NN of chapter 57 of the laws of 2018, amending the public health law and the state finance law, relating to enacting the opioid stewardship act, in relation to the applicability thereof (Part XX); to amend the tax law, in relation to the employer compensation expense tax (Part YY); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York Jockey Injury Compensation Fund, Inc. (Part ZZ); to amend the tax law, in relation to the empire state commercial production credit (Part AAA); to amend the tax law and the administrative code of the city of New York, in relation to the taxation of estates and trusts (Part BBB); 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 CCC); to amend the tax law, in relation to required disclo- sure on a bill, memorandum, receipt or other statement of price (Part DDD); to amend the tax law, in relation to the enforcement of delin- quent tax liabilities by means of the suspension of licenses to oper- ate a motor vehicle (Part EEE); to amend the tax law, in relation to exempting tangible personal property that becomes a component part of a monument (Part FFF); to amend subpart K of part II of a chapter of the laws of 2019 amending the public officers law relating to prohib- iting disclosure of law enforcement booking information and photo- graphs, as proposed in legislative bill numbers S.1505-C and A.2005-C, in relation to booking photographs; and to amend the public officers law, in relation to the arrest or booking photographs of an individual (Part GGG); to amend part TT of a chapter of the laws of 2019 relating to the closure of correctional facilities, as proposed in legislative bill numbers S.1505-C and A.2005-C, in relation to increasing the number of correctional facilities which may be closed (Part HHH); to amend the transportation law, the vehicle and traffic law and the insurance law, in relation to limousine safety (Part III); to amend the criminal procedure law, in relation to the issuance of securing orders and in relation to making conforming changes; and to repeal certain provisions of such law relating thereto (Part JJJ); to amend the criminal procedure law, in relation to time limits for a speedy trial (Part KKK); to amend the criminal procedure law and the penal law, in relation to establishing new criminal discovery rules; and to repeal article 240 of the criminal procedure law relating thereto (Part LLL); to amend the penal law, in relation to certain resentenc- ing by operation of law; and to amend the criminal procedure law, in relation to grounds to vacate judgment (Part MMM); to amend chapter 97 of the laws of 2011, amending the general municipal law and the educa- tion law relating to establishing limits upon school district and local government tax levies, in relation to making the tax cap perma- nent (Part NNN); to amend the tax law, in relation to amending the real estate transfer tax (Part OOO); to amend the state finance law and the tax law, in relation to base level grants for per capita state aid for the support of local government (Part PPP); to amend part KK of a chapter of the laws of 2019 directing the department of health to conduct a study relating to staffing enhancement and patient safety, as proposed in legislative bill numbers S.1507-C and A.2007-C, in relation to making a technical amendment (Part QQQ); to amend the highway law and the transportation corporations law, in relation to S. 1509--C 5 A. 2009--C granting the commissioner of transportation authority to enter into agreements with fiber optic utilities for use and occupancy of the state right of way; and providing for the repeal of such provisions upon expiration thereof (Part RRR); to amend the tax law, in relation to extending the empire state film production credit and empire state film post production credit for two years (Part SSS); to provide for the administration of certain funds and accounts related to the 2019- 20 budget, authorizing certain payments and transfers; to amend the New York state urban development corporation act, in relation to the issuance of certain bonds or notes; to amend part D of chapter 389 of the laws of 1997, relating to the financing of the correctional facil- ities improvement fund and the youth facility improvement fund, in relation to the issuance of certain bonds or notes; to amend the private housing finance law, in relation to the issuance of bonds or notes; to amend chapter 329 of the laws of 1991, amending the state finance law and other laws relating to the establishment of the dedi- cated highway and bridge trust fund, in relation to the issuance of certain bonds or notes; to amend the public authorities law, in relation to the issuance of certain bonds or notes; to amend part Y of chapter 61 of the laws of 2005, relating to providing for the adminis- tration of certain funds and accounts related to the 2005-2006 budget, in relation to the issuance of certain bonds or notes; to amend part X of chapter 59 of the laws of 2004, authorizing the New York state urban development corporation and the dormitory authority of the state of New York to issue bonds or notes, in relation to the issuance of such bonds or notes; to amend 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, in relation to the issu- ance of certain bonds or notes; to amend 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, in relation to the issuance of certain bonds or notes; to amend the New York state medical care facilities finance agency act, in relation to the issu- ance of certain bonds or notes; to amend the New York state urban development corporations act, in relation to the issuance of certain bonds or notes; to amend the facilities development corporation act, in relation to the mental hygiene facilities improvement fund income account; and to amend the state finance law, in relation to mental health services fund; and providing for the repeal of certain provisions upon expiration thereof (Part TTT); to amend part II of a chapter of the laws of 2019 amending 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 relating to extending such provisions, as proposed in legislative bill numbers S.1507-C and A.2007-C, in relation to the findings and determinations made by the compensation committee (Part UUU); to amend part E of chapter 60 of the laws of 2015, establishing a commission on legislative, judicial and executive compensation, and providing for the powers and duties of the commission and for the dissolution of the commission, in relation to the powers of the members of the commission (Part VVV); to amend the infrastructure investment act, in relation to extending the effec- tiveness thereof; and to amend the transformational economic develop- ment infrastructure and revitalization projects act, in relation to extending the effectiveness thereof (Part WWW); creating a public campaign financing and election commission (Part XXX); to amend the education law, in relation to contracts for excellence and the appor- S. 1509--C 6 A. 2009--C tionment of public moneys; to amend the education law, in relation to a statement of the total funding allocation; to amend the education law, in relation to universal pre-kindergarten aid; to amend the education law, in relation to moneys apportioned for boards of cooper- ative educational services aidable expenditures; to amend the educa- tion law, in relation to supplemental public excess cost 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 the statewide universal full-day pre-kindergarten program; 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 contain- ing certain students with disabilities; to amend the education law, in relation to waivers from duties; to amend the education law, in relation to annual teacher and principal evaluations; to amend the education law, in relation to the education of homeless children; 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 effec- tiveness thereof; to amend the education law, in relation to the suspension of pupils; to amend the education law, in relation to school safety plans; to amend chapter 756 of the laws of 1992, relat- ing to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to reimbursements for the 2019-2020 school year; to amend chapter 756 of the laws of 1992, relating to funding a program for work force educa- tion 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 education preparation programs; to amend chapter 82 of the laws of 1995, amending the educa- tion law and other laws relating to state aid to school districts and the appropriation of funds for the support of government, in relation to the effectiveness thereof; to amend chapter 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 425 of the laws of 2002, amending the education law relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school, in relation to the effectiveness thereof; to amend chapter 101 of the laws of 2003, amending the education law relating to implemen- tation of the No Child Left Behind Act of 2001, in relation to the effectiveness thereof; to amend chapter 91 of the laws of 2002, amend- ing the education law and other laws relating to reorganization of the New York city school construction authority, board of education and community boards, in relation to the effectiveness thereof; to amend chapter 345 of the laws of 2009, amending the education law and other laws relating to the New York city board of education, chancellor, community councils, and community superintendents, in relation to the effectiveness thereof; to amend the education law, in relation to providing community councils with an opportunity to meet candidates for community superintendent, to the removal of members of the board of education of the city of New York, to establishing a task force on community district education councils, to the qualifications of the chancellor, and to proposals for school closings or significant chang- S. 1509--C 7 A. 2009--C es in utilization; to amend chapter 472 of the laws of 1998, amending the education law relating to the lease of school buses by school districts, in relation to the effectiveness thereof; to amend chapter 552 of the laws of 1995, amending the education law relating to contracts for the transportation of school children, in relation to the effectiveness thereof; to amend chapter 97 of the laws of 2011, amending the education law relating to census reporting, in relation to the effectiveness thereof; to amend chapter 89 of the laws of 2016 relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district, in relation to the effectiveness thereof; in relation to school bus driv- er training; in relation to special apportionment for salary expenses and public pension accruals; in relation to the city school district of the city of Rochester; in relation to total foundation aid for the purpose of the development, maintenance or expansion of certain magnet schools or magnet school programs for the 2019-2020 school year; in relation 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 issuance of serial bonds, in relation to certain apportionments; to amend the education law, in relation to requiring school districts to conduct building surveys every five years; to amend the education law, in relation to addi- tional apportionment of building aid for building condition surveys of school buildings; to amend the education law, in relation to building aid for testing and filtering of potable water systems for lead contamination; to amend the education law, in relation to inspections of public school buildings; to amend the general municipal law, in relation to retirement contribution reserve funds; to repeal subpara- graphs 2 and 3 of paragraph a of subdivision 1 of section 3609-a of the education law, relating to lottery apportionment and lottery text- book apportionment and to repeal a chapter of the laws of 2019 amend- ing the education law relating to state assessments and teacher evalu- ations, as proposed in legislative bills numbers S. 1262 and A. 783 (Part YYY); to amend the vehicle and traffic law and the public authorities law, in relation to establishing a central business district tolling program in the city of New York; and to amend the public officers law, in relation to confidentiality of certain public records (Subpart A); to amend the public authorities law, in relation to allowing the assignment, transfer, sharing or consolidating of powers, functions or activities of the metropolitan transportation authority; establishes an independent forensic audit and the major construction review unit (Subpart B); to amend the public authorities law, in relation to various procurement processes of the metropolitan transportation authority (Subpart C); to amend the public authorities law, in relation to metropolitan transportation authority transit performance metrics (Subpart D); to amend the public authorities law, in relation to the submission of a twenty-year capital needs assess- ment (Subpart E); and to amend the tax law, in relation to a central business district toll credit (Subpart F) (Part ZZZ); and to amend the public authorities law, in relation to voting by members of the New York state authorities control board (Part AAAA) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: S. 1509--C 8 A. 2009--C Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2019-2020 state fiscal year. Each component is wholly contained within a Part identified as Parts A through AAAA. The effective date for each partic- ular provision in any section contained within a Part, including the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. Intentionally omitted. § 2. Intentionally omitted. § 3. Intentionally omitted. § 4. Intentionally omitted. § 5. Subdivisions (a), (c) and (d) of section 23 of part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing standards for electronic tax adminis- tration, as amended by section 5 of part G of chapter 60 of the laws of 2016, are amended to read as follows: (a) the amendments to section 29 of the tax law made by section thir- teen of this act shall apply to tax documents filed or required to be filed on or after the sixtieth day after which this act shall have become a law and shall expire and be deemed repealed December 31, [2019] 2024, provided however that the amendments to paragraph 4 of subdivision (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of section 29 of the tax law made by section thirteen of this act with regard to individual taxpayers shall take effect September 15, 2011 but only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eighty-five percent; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission of the date of the issuance of such report 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; (c) sections fourteen-a and fifteen-a of this act shall take effect September 15, 2011 and expire and be deemed repealed December 31, 2012 but shall take effect only if the commissioner of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is eighty-five percent or greater; (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this act shall take effect January 1, [2020] 2025 but only if the commission- er of taxation and finance has reported in the report required by section seventeen-b of this act that the percentage of individual taxpayers electronically filing their 2010 income tax returns is less than eighty-five percent; and § 6. This act shall take effect immediately. PART B S. 1509--C 9 A. 2009--C Section 1. Subdivision 3 of section 441 of the economic development law, as amended by section 1 of part L of chapter 59 of the laws of 2017, is amended to read as follows: 3. "Eligible training" means (a) training provided by THE BUSINESS ENTITY OR an approved provider that is: (i) to upgrade, retrain or improve the productivity of employees; (ii) provided to employees in connection with a significant capital investment by a participating business entity; (iii) determined by the commissioner to satisfy a business need on the part of a participating business entity; (iv) not designed to train or upgrade skills as required by a federal or state entity; (v) not training the completion of which may result in the awarding of a license or certificate required by law in order to perform a job func- tion; and (vi) not culturally focused training; or (b) an internship program in advanced technology [or], life sciences, SOFTWARE DEVELOPMENT OR CLEAN ENERGY approved by the commissioner and provided by THE BUSINESS ENTITY OR an approved provider, on or after August first, two thousand fifteen, to provide employment and experience opportunities for current students, recent graduates, and recent members of the armed forces. § 2. Paragraph (b) of subdivision 1 of section 442 of the economic development law, as amended by section 2 of part L of chapter 59 of the laws of 2017, is amended to read as follows: (b) The business entity must demonstrate that it is CONDUCTING ELIGI- BLE TRAINING OR obtaining eligible training from an approved provider; § 3. Paragraph (a) of subdivision 2 of section 443 of the economic development law, as added by section 1 of part O of chapter 59 of the laws of 2015, is amended to read as follows: (a) provide such documentation as the commissioner may require in order for the commissioner to determine that the business entity intends to CONDUCT ELIGIBLE TRAINING OR procure eligible training for its employees from an approved provider; § 4. This act shall take effect immediately. PART C Section 1. Section 210-A of the tax law is amended by adding a new subdivision 5-a to read as follows: 5-A. NET GLOBAL INTANGIBLE LOW-TAXED INCOME. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE APPORTIONMENT FRACTION AS PROVIDED IN THIS SUBDIVISION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRAC- TION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE APPORTIONMENT FRACTION. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE. § 2. Section 11-654.2 of the administrative code of the city of New York is amended by adding a new subdivision 5-a to read as follows: 5-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE RECEIPTS FRACTION S. 1509--C 10 A. 2009--C AS PROVIDED IN THIS SUBDIVISION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW- TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC- TION. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE. § 3. Subparagraph (2) of paragraph (a) of subdivision (3) of section 11-604 of the administrative code of the city of New York is amended by adding a new clause (E) to read as follows: (E) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PARAGRAPH, NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE RECEIPTS FRACTION AS PROVIDED IN THIS CLAUSE. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. FOR PURPOSES OF THIS CLAUSE, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED INCOME" MEANS THE AMOUNT THAT WOULD HAVE BEEN REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE INTERNAL REVENUE CODE LESS THE AMOUNT OF THE DEDUCTION THAT WOULD HAVE BEEN ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE IF THE TAXPAYER HAD NOT MADE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER ONE OF THE INTERNAL REVENUE CODE. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART D Section 1. Subparagraph (vi) of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 11 of part T of chap- ter 59 of the laws of 2015, is amended to read as follows: (vi) for taxable years beginning on or after January first, two thou- sand fourteen, the amount prescribed by this paragraph for a taxpayer [which] THAT is a qualified New York manufacturer, shall be computed at the rate of zero percent of the taxpayer's business income base. The term "manufacturer" shall mean a taxpayer [which] THAT during the taxa- ble year is principally engaged in the production of goods by manufac- turing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture or commercial fish- ing. However, the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity shall not be qualifying activities for a manufacturer under this subparagraph. Moreover, in the case of a combined report, the combined group shall be considered a "manufacturer" for purposes of this subparagraph only if the combined group during the taxable year is principally engaged in the activities set forth in this paragraph, or any combination thereof. A taxpayer or, in the case of a combined report, a combined group shall be "principally engaged" in activities described above if, during the taxable year, more than fifty percent of the gross receipts of the taxpayer or combined group, respec- tively, are derived from receipts from the sale of goods produced by such activities. In computing a combined group's gross receipts, inter- corporate receipts shall be eliminated. A "qualified New York manufac- turer" is a manufacturer [which] THAT has property in New York [which] S. 1509--C 11 A. 2009--C THAT is described in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of section two hundred ten-B of this article and either (I) the adjusted basis of such property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (II) all of its real and personal property is located in New York. A taxpayer or, in the case of a combined report, a combined group, that does not satisfy the principally engaged test may be a qual- ified New York manufacturer if the taxpayer or the combined group employs during the taxable year at least two thousand five hundred employees in manufacturing in New York and the taxpayer or the combined group has property in the state used in manufacturing, the adjusted basis of which for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one hundred million dollars. § 2. Subparagraph 2 of paragraph (b) of subdivision 1 of section 210 of the tax law, as amended by section 18 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (2) For purposes of subparagraph one of this paragraph, the term "manufacturer" shall mean a taxpayer [which] THAT during the taxable year is principally engaged in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agricul- ture, horticulture, floriculture, viticulture or commercial fishing. Moreover, for purposes of computing the capital base in a combined report, the combined group shall be considered a "manufacturer" for purposes of this subparagraph only if the combined group during the taxable year is principally engaged in the activities set forth in this subparagraph, or any combination thereof. A taxpayer or, in the case of a combined report, a combined group shall be "principally engaged" in activities described above if, during the taxable year, more than fifty percent of the gross receipts of the taxpayer or combined group, respec- tively, are derived from receipts from the sale of goods produced by such activities. In computing a combined group's gross receipts, inter- corporate receipts shall be eliminated. A "qualified New York manufac- turer" is a manufacturer that has property in New York that is described in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of section two hundred ten-B of this article and either (i) the adjusted basis of that property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (ii) all of its real and personal property is located in New York. In addi- tion, a "qualified New York manufacturer" means a taxpayer that is defined as a qualified emerging technology company under paragraph (c) of subdivision one of section thirty-one hundred two-e of the public authorities law regardless of the ten million dollar limitation expressed in subparagraph one of such paragraph. A taxpayer or, in the case of a combined report, a combined group, that does not satisfy the principally engaged test may be a qualified New York manufacturer if the taxpayer or the combined group employs during the taxable year at least two thousand five hundred employees in manufacturing in New York and the taxpayer or the combined group has property in the state used in manu- facturing, the adjusted basis of which for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one hundred million dollars. § 3. Clause (ii) of subparagraph 4 of paragraph (k) of subdivision 1 of section 11-654 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: S. 1509--C 12 A. 2009--C (ii) A "qualified New York manufacturing corporation" is a manufactur- ing corporation that has property in the state [which] THAT is described in subparagraph five of this paragraph and either (A) the adjusted basis of such property for [federal income] NEW YORK STATE tax purposes at the close of the taxable year is at least one million dollars or (B) more than fifty [percentum] PERCENT of its real and personal property is located in the state. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART E Section 1. Section 5 of part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program is amended to read as follows: § 5. This act shall take effect January 1, 2015, and shall apply to taxable years beginning on and after that date; provided, however, that this act shall expire and be deemed repealed January 1, [2020] 2023. § 2. This act shall take effect immediately. PART F Section 1. Paragraph 3 of subsection (a) of section 954 of the tax law, as amended by section 2 of part BB of chapter 59 of the laws of 2015, is amended to read as follows: (3) Increased by the amount of any taxable gift under section 2503 of the internal revenue code not otherwise included in the decedent's federal gross estate, made during the three year period ending on the decedent's date of death, but not including any gift made: (A) when the decedent was not a resident of New York state; or (B) before April first, two thousand fourteen; or (C) BETWEEN JANUARY FIRST, TWO THOUSAND NINETEEN AND JANUARY FIFTEENTH, TWO THOUSAND NINETEEN; OR (D) that is real or tangible personal property having an actual situs outside New York state at the time the gift was made. Provided, however that this paragraph shall not apply to the estate of a [decendent] DECEDENT dying on or after January first, two thousand [nineteen] TWENTY-SIX. § 2. Subsection (a) of section 954 of the tax law is amended by adding a new paragraph 4 to read as follows: (4) INCREASED BY THE VALUE OF ANY PROPERTY NOT OTHERWISE ALREADY INCLUDED IN THE DECEDENT'S FEDERAL GROSS ESTATE IN WHICH THE DECEDENT HAD A QUALIFYING INCOME INTEREST FOR LIFE IF A DEDUCTION WAS ALLOWED ON THE RETURN OF THE TAX IMPOSED BY THIS ARTICLE WITH RESPECT TO THE TRANS- FER OF SUCH PROPERTY TO THE DECEDENT BY REASON OF THE APPLICATION OF PARAGRAPH (7) OF SUBSECTION (B) OF SECTION 2056 OF THE INTERNAL REVENUE CODE, AS MADE APPLICABLE TO THE TAX IMPOSED BY THIS ARTICLE BY SECTION NINE HUNDRED NINETY-NINE-A OF THIS ARTICLE, WHETHER OR NOT A FEDERAL ESTATE TAX RETURN WAS REQUIRED TO BE FILED BY THE ESTATE OF THE TRANS- FERRING SPOUSE. § 3. Subsection (c) of section 955 of the tax law, as added by section 4 of part X of chapter 59 of the laws of 2014, is amended to read as follows: (c) Qualified terminable interest property election.-- Except as otherwise provided in this subsection, the election referred to in para- graph (7) of subsection (b) of section 2056 of the internal revenue code shall not be allowed under this article unless such election was made S. 1509--C 13 A. 2009--C with respect to the federal estate tax return required to be filed under the provisions of the internal revenue code. If such election was made for the purposes of the federal estate tax, then such election must also be made by the executor on the return of the tax imposed by this arti- cle. Where no federal estate tax return is required to be filed, the executor [may] MUST make the election referred to in such paragraph (7) with respect to the tax imposed by this article on the return of the tax imposed by this article. Any election made under this subsection shall be irrevocable. § 4. This act shall take effect immediately; provided however that section one of this act shall apply to estates of decedents dying on or after January 16, 2019 and sections two and three of this act shall apply to estates of decedents dying on or after April 1, 2019. PART G Section 1. Section 1101 of the tax law is amended by adding a new subdivision (e) to read as follows: (E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH MARKETPLACE SELLER OR SELLERS. A PERSON "FACILITATES A SALE OF TANGIBLE PERSONAL PROPERTY" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTER- NET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFIL- IATE 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, A "SALE OF TANGIBLE PERSONAL PROPERTY" SHALL NOT INCLUDE THE RENTAL OF A PASSENGER CAR AS DESCRIBED IN SECTION ELEVEN HUNDRED SIXTY OF THIS CHAPTER BUT SHALL INCLUDE A LEASE DESCRIBED IN SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. FOR PURPOSES OF THIS PARAGRAPH, PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN ANOTHER, 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 IS NOT OTHERWISE REGISTERED PURSUANT TO SECTION ELEVEN HUNDRED THIRTY FOUR OF THIS ARTICLE IS NOT A MARKETPLACE PROVIDER IF SUCH PERSON HAS NO PHYSICAL PRESENCE IN NEW YORK AND, FOR THE IMMEDIATE- LY PRECEDING FOUR QUARTERLY PERIODS ENDING ON THE LAST DAY OF FEBRUARY, MAY, AUGUST AND NOVEMBER, CAN SHOW THAT THE CUMULATIVE TOTAL GROSS RECEIPTS OF SALES IT HAS MADE OR FACILITATED OF PROPERTY DELIVERED IN THIS STATE DOES NOT EXCEED THREE HUNDRED THOUSAND DOLLARS OR THAT SUCH PERSON HAS NOT MADE OR FACILITATED MORE THAN ONE HUNDRED SALES OF PROP- ERTY DELIVERED IN THIS STATE. HOWEVER, SUCH PERSON MAY ELECT TO REGISTER AS A MARKETPLACE PROVIDER, AND, ONCE REGISTERED, WILL BE SUBJECT TO THE PROVISIONS OF THIS ARTICLE. (2) MARKETPLACE SELLER. ANY PERSON, WHETHER OR NOT SUCH PERSON IS REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN S. 1509--C 14 A. 2009--C 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 section 1 of part X of chapter 59 of the laws of 2018, 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, 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. § 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: (A) 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 (B) 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: (A) THE MARKETPLACE SELLER CAN SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH S. 1509--C 15 A. 2009--C SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (B) 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: (A) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A MARKETPLACE PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM THE MARKET- PLACE PROVIDER FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY, WITH RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY OCCURS IN THE STATE; AND (B) 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 OR INSUFFICIENT INFORMATION GIVEN TO THE MARKETPLACE PROVIDER BY THE MARKETPLACE SELLER. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE SELLER AND MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 46 of part K of chapter 61 of the laws of 2011, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE MARKETPLACE SELLER HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF- S. 1509--C 16 A. 2009--C ICATE OF COLLECTION FROM THE MARKETPLACE PROVIDER OR THE MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE PROVIDER AND THE MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY IS ACCURATE. § 6. Section 1142 of the tax law is amended by adding a new subdivi- sion 15 to read as follows: (15) TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAVE 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. § 6-a. Section 1148 of the tax law, as amended by section 57 of part HH of chapter 57 of the laws of 2013, is amended to read as follows: § 1148. Deposit and disposition of revenue. (A) All taxes, interest and penalties collected or received by the commissioner under this arti- cle shall be deposited and disposed of pursuant to the provisions of section one hundred seventy-one-a of this chapter; provided however, the comptroller shall on or before the twelfth day of each month, pay all such taxes, interest and penalties collected under this article and remaining to the comptroller's credit in such banks, banking houses or trust companies at the close of business on the last day of the preced- ing month, into the general fund of the state treasury[, except]. (B) PROVIDED HOWEVER, BEFORE THE FUNDS MAY BE DISTRIBUTED PURSUANT TO SUBDIVISION (A) OF THIS SECTION, SUCH FUNDS SHALL BE DISTRIBUTED as otherwise provided in sections ninety-two-d, ninety-two-h, and ninety- two-r of the state finance law and sections eleven hundred two, eleven hundred four and eleven hundred nine of this article. (C) PROVIDED HOWEVER, AFTER FUNDS ARE DISTRIBUTED PURSUANT TO SUBDIVI- SION (B) OF THIS SECTION BUT BEFORE SUCH FUNDS ARE DISTRIBUTED PURSUANT TO SUBDIVISION (A) OF THIS SECTION, FUNDS SHALL BE DEPOSITED BY THE COMPTROLLER INTO THE NEW YORK CENTRAL BUSINESS DISTRICT TRUST FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-FF OF THE STATE FINANCE LAW IN ACCORDANCE WITH THE FOLLOWING SCHEDULE: (1) IN STATE FISCAL YEAR TWO THOUSAND NINETEEN - TWO THOUSAND TWENTY, ONE HUNDRED TWELVE MILLION FIVE HUNDRED THOUSAND DOLLARS; (2) IN STATE FISCAL YEAR TWO THOUSAND TWENTY - TWO THOUSAND TWENTY-ONE, ONE HUNDRED FIFTY MILLION DOLLARS; AND (3) IN STATE FISCAL YEAR TWO THOUSAND TWENTY-ONE - TWO THOUSAND TWENTY-TWO AND EVERY SUCCEEDING STATE FISCAL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED ONE PERCENT OF THE AMOUNT DEPOSITED IN THE IMMEDIATELY PRECEDING STATE FISCAL YEAR. THE FUNDS DEPOSITED INTO THE NEW YORK CENTRAL BUSINESS DISTRICT TRUST FUND SHALL BE DEPOSITED MONTHLY IN EQUAL INSTALLMENTS. § 6-b. Paragraph 5 of subdivision (c) of section 1261 of the tax law, as added by section 9 of part SS-1 of chapter 57 of the laws of 2008, is amended to read as follows: (5) (I) However, the comptroller shall withhold from the taxes, penal- ties and interest imposed by the city of New York on and after August first, two thousand eight, and deposit such amounts to the state treas- ury as reimbursement for appropriated disbursements made by the New York state financial control board established by the New York state finan- S. 1509--C 17 A. 2009--C cial emergency act for the city of New York and by the state deputy comptroller for the city of New York established by section forty-one-a of the executive law, as the actual, reasonable expenses of that board or that deputy comptroller, incurred on behalf of the city, for quarter- ly periods commencing July first, two thousand eight, and ending on the date when those expenses are no longer incurred by that board or deputy comptroller; and the comptroller shall pay those withheld amounts imme- diately into the miscellaneous special revenue fund financial control board account 339-15 and the miscellaneous special revenue fund finan- cial oversight account 339-DI of the state. During the period that the comptroller is required to withhold amounts and make payments described in this paragraph, the city of New York has no right, title or interest in or to those taxes, penalties and interest required to be paid into the above referenced miscellaneous special revenue funds. (II) AFTER WITHHOLDING THE TAXES, PENALTIES AND INTEREST IMPOSED BY THE CITY OF NEW YORK ON AND AFTER AUGUST FIRST, TWO THOUSAND EIGHT AS PROVIDED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE COMPTROLLER SHALL WITHHOLD A PORTION OF SUCH TAXES, PENALTIES AND INTEREST SUFFICIENT TO DEPOSIT ANNUALLY INTO THE CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCKBOX ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED FIFTY-THREE-J OF THE PUBLIC AUTHORITIES LAW: (A) IN STATE FISCAL YEAR TWO THOUSAND NINE- TEEN - TWO THOUSAND TWENTY, ONE HUNDRED TWENTY-SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS; (B) IN STATE FISCAL YEAR TWO THOUSAND TWENTY - TWO THOUSAND TWENTY-ONE, ONE HUNDRED SEVENTY MILLION DOLLARS; AND (C) IN STATE FISCAL YEAR TWO THOUSAND TWENTY-ONE - TWO THOUSAND TWENTY-TWO AND EVERY SUCCEEDING STATE FISCAL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED ONE PERCENT OF THE AMOUNT DEPOSITED IN THE IMMEDIATELY PRECEDING STATE FISCAL YEAR. THE FUNDS SHALL BE DEPOSITED MONTHLY IN EQUAL INSTALL- MENTS. DURING THE PERIOD THAT THE COMPTROLLER IS REQUIRED TO WITHHOLD AMOUNTS AND MAKE PAYMENTS DESCRIBED IN THIS PARAGRAPH, THE CITY OF NEW YORK HAS NO RIGHT, TITLE OR INTEREST IN OR TO THOSE TAXES, PENALTIES AND INTEREST REQUIRED TO BE PAID INTO THE ABOVE REFERENCED CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCKBOX. § 6-c. The state finance law is amended by adding a new section 99-ff to read as follows: § 99-FF. NEW YORK CENTRAL BUSINESS DISTRICT TRUST FUND. 1. ESTABLISH- MENT OF THE FUND. 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 CENTRAL BUSINESS DISTRICT TRUST FUND. MONEYS IN THIS ACCOUNT SHALL BE KEPT SEPARATE AND NOT COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER. 2. SOURCES OF FUNDS. THE SOURCES OF FUNDS SHALL CONSIST OF ALL MONEYS DEPOSITED PURSUANT TO SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FORTY- EIGHT OF THE TAX LAW. ANY INTEREST RECEIVED BY THE COMPTROLLER ON MONEYS ON DEPOSIT SHALL BE RETAINED AND BECOME PART OF THE FUND, UNLESS OTHER- WISE DIRECTED BY LAW. 3. USES OF FUNDS. FOLLOWING APPROPRIATION BY THE LEGISLATURE, MONEYS SHALL BE AVAILABLE FOR DISTRIBUTION TO THE CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCKBOX ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED FIFTY-THREE-J OF THE PUBLIC AUTHORITIES LAW. § 7. This act shall take effect immediately and shall apply to sales made on or after June 1, 2019. PART H S. 1509--C 18 A. 2009--C 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 is REPEALED. § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- trative code of the city of New York is REPEALED. § 5. This act shall take effect June 1, 2019, and shall apply to sales made and services rendered on and after that date, whether or not under a prior contract. PART I Section 1. Subdivision 3 of section 1204 of the real property tax law, as added by chapter 115 of the laws of 2018, is amended to read as follows: 3. Where the tentative equalization rate is not within plus or minus five [percentage points] PERCENT of the locally stated level of assess- ment, the assessor shall provide notice in writing to the local govern- ing body of any affected town, city, village, county and school district of the difference between the locally stated level of assessment and the tentative equalization rate. Such notice shall be made within ten days of the receipt of the tentative equalization rate, or within ten days of the filing of the tentative assessment roll, whichever is later, and shall provide the difference in the indicated total full value estimates of the locally stated level of assessment and the tentative equalization rate for the taxable property within each affected town, city, village, county and school district, where applicable. § 2. The real property tax law is amended by adding a new section 1211 to read as follows: § 1211. CONFIRMATION BY COMMISSIONER OF THE LOCALLY STATED LEVEL OF ASSESSMENT. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS TITLE, BEFORE THE COMMISSIONER DETERMINES A TENTATIVE EQUALIZATION RATE FOR A CITY, TOWN OR VILLAGE, HE OR SHE SHALL EXAMINE THE ACCURACY OF THE LOCALLY STATED LEVEL OF ASSESSMENT APPEARING ON THE TENTATIVE ASSESSMENT ROLL. IF THE COMMISSIONER CONFIRMS THE LOCALLY STATED LEVEL OF ASSESS- MENT, THEN AS SOON THEREAFTER AS IS PRACTICABLE, HE OR SHE SHALL ESTAB- LISH AND CERTIFY SUCH LOCALLY STATED LEVEL OF ASSESSMENT AS THE FINAL EQUALIZATION RATE FOR SUCH CITY, TOWN OR VILLAGE IN THE MANNER PROVIDED BY SECTIONS TWELVE HUNDRED TEN AND TWELVE HUNDRED TWELVE OF THIS TITLE. THE PROVISIONS OF SECTIONS TWELVE HUNDRED FOUR, TWELVE HUNDRED SIX AND TWELVE HUNDRED EIGHT OF THIS TITLE SHALL NOT APPLY IN SUCH CASES, UNLESS THE COMMISSIONER FINDS THAT THE FINAL ASSESSMENT ROLL DIFFERS FROM THE TENTATIVE ASSESSMENT ROLL TO AN EXTENT THAT RENDERS THE LOCALLY STATED LEVEL OF ASSESSMENT INACCURATE, AND RESCINDS THE FINAL EQUALIZATION RATE ON THAT BASIS. § 3. Paragraph (d) of subdivision 1 of section 1314 of the real prop- erty tax law, as amended by chapter 158 of the laws of 2002, is amended to read as follows: (d) (I) Such district superintendent shall also determine what propor- tion of any tax to be levied in such school district for school purposes S. 1509--C 19 A. 2009--C during the current school year shall be levied upon each part of a city or town included in such school district by dividing the sum of the full valuation of real property in such part of a city or town by the total of all such full valuations of real property in such school district. PROVIDED, HOWEVER, THAT PRIOR TO THE LEVY OF TAXES, THE GOVERNING BODY OF THE SCHOOL DISTRICT MAY ADOPT A RESOLUTION DIRECTING SUCH PROPORTIONS TO BE BASED UPON THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER EITHER A THREE-YEAR PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE TWO PRIOR SCHOOL YEARS, OR OVER A FIVE-YEAR PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE FOUR PRIOR SCHOOL YEARS. ONCE SUCH A RESOLUTION HAS BEEN ADOPTED, THE PROPORTIONS FOR ENSUING SCHOOL YEARS SHALL CONTINUE TO BE BASED UPON THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER THE SELECTED PERIOD, UNLESS THE RESOLUTION PROVIDES OTHERWISE OR IS REPEALED. (II) Such proportions shall be expressed in the nearest exact ten thousandths and the school authorities of such school district shall levy such a proportion of any tax to be raised in the school district during the current school year upon each part of a city or town included in such school district as shall have been determined by the district superintendent. A new proportion shall be determined for each school year thereafter by the district superintendent in accordance with the provisions of this section by the use of the latest state equalization rates. In any such school district that is not within the jurisdiction of a district superintendent of schools, the duties which would other- wise be performed by the district superintendent under the provisions of this section, shall be performed by the school authorities of such district. § 4. This act shall take effect immediately. PART J Section 1. This Part enacts into law major components of legislation relating to the improvement of the administration of real property taxa- tion in accordance with the real property tax law and other laws relat- ing thereto. Each component is wholly contained within a Subpart identi- fied as Subparts A through F. 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 Intentionally Omitted SUBPART B Section 1. Paragraph (b) of subdivision 1 of section 523 of the real property tax law, as amended by chapter 223 of the laws of 1987, is amended to read as follows: (b) The board of assessment review shall consist of not less than three nor more than five members appointed by the legislative body of the local government or village OR AS PROVIDED BY SUBDIVISION FIVE OF S. 1509--C 20 A. 2009--C SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF APPLICABLE. Members shall have a knowledge of property values in the local govern- ment or village. Neither the assessor nor any member of his or her staff may be appointed to the board of assessment review. A majority of such board shall consist of members who are not officers or employees of the local government or village. § 2. Subdivision 1 of section 1537 of the real property tax law, as added by chapter 512 of the laws of 1993, is amended and a new subdivi- sion 5 is added to read as follows: 1. (a) An assessing unit and a county shall have the power to enter into, amend, cancel and terminate an agreement for appraisal services, exemption services, [or] assessment services, OR ASSESSMENT REVIEW SERVICES, in the manner provided by this section. Such an agreement shall be considered an agreement for the provision of a "joint service" for purposes of article five-G of the general municipal law, notwith- standing the fact that the county would not have the power to perform such services in the absence of such an agreement. (b) Any such agreement shall be approved by both the assessing unit and the county, by a majority vote of the voting strength of each governing body. (c) In the case of an assessing unit, no such agreement shall be submitted to the governing body for approval unless at least forty-five days prior to such submission, the governing body shall have adopted a resolution, subject to a permissive referendum, authorizing the assess- ing unit to negotiate such an agreement with the county; provided, however, that such prior authorization shall not be required for an agreement to amend, cancel or terminate an existing agreement pursuant to this section. 5. AN AGREEMENT BETWEEN AN ASSESSING UNIT AND A COUNTY FOR ASSESSMENT REVIEW SERVICES SHALL PROVIDE FOR THE MEMBERS OF THE BOARD OF ASSESSMENT REVIEW OF THE ASSESSING UNIT TO BE APPOINTED BY THE LEGISLATIVE BODY OF THE COUNTY UPON THE RECOMMENDATION OF THE COUNTY DIRECTOR OF THE REAL PROPERTY TAX SERVICES. EACH MEMBER SO APPOINTED SHALL BE A RESIDENT OF THE COUNTY BUT NEED NOT BE A RESIDENT OF THE ASSESSING UNIT. THE BOARD OF ASSESSMENT REVIEW AS SO CONSTITUTED SHALL HAVE THE AUTHORITY TO RECEIVE, REVIEW AND RESOLVE PETITIONS FOR ASSESSMENT REVIEW FILED IN SUCH ASSESSING UNIT, AND FOR THE CORRECTIONS OF ERRORS THEREIN, TO THE FULL EXTENT SET FORTH IN ARTICLE FIVE OF THIS CHAPTER. § 3. Subdivision 1 of section 1408 of the real property tax law, as amended by chapter 473 of the laws of 1984, is amended to read as follows: 1. At the time and place and during the hours specified in the notice given pursuant to section fourteen hundred six of this chapter, the board of review shall meet to hear complaints relating to assessments brought before it. The board of trustees and assessors, or a committee of such board constituting at least a majority thereof and the assessors or a board of assessment review constituted pursuant to section five hundred twenty-three of this chapter, OR AS PROVIDED BY SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF APPLICABLE, shall constitute the board of review. § 4. This act shall take effect immediately. SUBPART C Section 1. Subdivision 4 of section 318 of the real property tax law, as amended by chapter 527 of the laws of 1997 and as further amended by S. 1509--C 21 A. 2009--C subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 4. Notwithstanding the provisions of this subdivision or any other law, the travel and other actual and necessary expenses incurred by an appointed or elected assessor, or by A PERSON APPOINTED ASSESSOR FOR A FORTHCOMING TERM, OR BY an assessor-elect prior to the commencement of his OR HER term, in satisfactorily completing courses of training as required by this title or as approved by the commissioner, including continuing education courses prescribed by the commissioner which are satisfactorily completed by any elected assessor, shall be a state charge upon audit by the comptroller. Travel and other actual and neces- sary expenses incurred by an acting assessor who has been exercising the powers and duties of the assessor for a period of at least six months, in attending training courses no earlier than twelve months prior to the date when courses of training and education are required, shall also be a state charge upon audit by the comptroller. Candidates for certif- ication as eligible for the position of assessor, other than assessors or assessors-elect, shall be charged for the cost of training materials and shall be responsible for all other costs incurred by them in connection with such training. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBDIVISION, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS- SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE. § 2. Paragraph f of subdivision 3 of section 1530 of the real property tax law, as amended by chapter 361 of the laws of 1986 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: f. Expenses in attending training courses. Notwithstanding the provisions of any other law, the travel and other actual and necessary expenses incurred by a director or a person appointed director for a forthcoming term in attending courses of training as required by this subdivision or as approved by the commissioner shall be a state charge upon audit by the comptroller. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS PARAGRAPH, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS- SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE. § 3. This act shall take effect immediately. SUBPART D Section 1. Section 104 of the real property tax law, as added by section 1 of part U of chapter 61 of the laws of 2011, is amended to read as follows: § 104. Electronic real property tax administration. 1. Notwithstanding any provision of law to the contrary, the commissioner is hereby author- ized to establish standards for electronic real property tax adminis- tration (E-RPT). Such standards shall set forth the terms and conditions under which the various tasks associated with real property tax adminis- tration may be executed electronically, dispensing with the need for paper documents. Such tasks shall include ANY OR ALL OF THE FOLLOWING: S. 1509--C 22 A. 2009--C (a) The filing of exemption applications; (b) The filing of petitions for administrative review of assessments; (c) The filing of petitions for judicial review of assessments; (d) The filing of applications for administrative corrections of errors; (e) The issuance of statements of taxes; (f) The payment of taxes, subject to the provisions of sections five and five-b of the general municipal law; (g) The provision of receipts for the payment of taxes; (h) The issuance of taxpayer notices required by law, including sections five hundred eight, five hundred ten, five hundred ten-a, five hundred eleven, five hundred twenty-five and five hundred fifty-one-a through five hundred fifty-six-b of this chapter; and (i) The furnishing of notices and certificates under this chapter relating to state equalization rates, residential assessment ratios, special franchise assessments, railroad ceilings, taxable state lands, advisory appraisals, and the certification of assessors and county directors or real property tax services, SUBJECT TO THE PROVISIONS OF SUBDIVISION FIVE OF THIS SECTION. 2. Such standards shall be developed after consultation with local government officials, the office of court administration IN THE CASE OF STANDARDS RELATING TO PETITIONS FOR JUDICIAL REVIEW OF ASSESSMENTS, and the office of the state comptroller IN THE CASE OF STANDARDS RELATING TO PAYMENTS OR TAXES AND THE ISSUANCE OF RECEIPTS THEREFOR. 3. (a) Taxpayers shall not be required to accept notices, statements of taxes, receipts for the payment of taxes, or other documents elec- tronically unless they have so elected. Taxpayers who have not so elected shall be sent such communications in the manner otherwise provided by law. (b) [Assessors and other municipal officials shall not be required to accept and respond to communications from the commissioner electron- ically. (c)] The governing board of any municipal corporation may, by local law, ordinance or resolution, determine that it is in the public inter- est for such municipal corporation to provide electronic real property tax administration. Upon adoption of such local law, ordinance or resol- ution, such municipal corporation shall comply with standards set forth by the commissioner. [(d)] (C) The standards prescribed by the commissioner pursuant to this section RELATING TO COMMUNICATIONS WITH TAXPAYERS shall provide for the collection of electronic contact information, such as e-mail addresses and/or social network usernames, from taxpayers who have elected to receive electronic communications in accordance with the provisions of this section. Such information shall be exempt from public disclosure in accordance with section eighty-nine of the public officers law. 4. When a document has been transmitted electronically in accordance with the provisions of this section and the standards adopted by the commissioner hereunder, it shall be deemed to satisfy the applicable legal requirements to the same extent as if it had been mailed via the United States postal service. 5. (A) ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY, WHENEVER THE COMMISSIONER IS OBLIGED BY LAW TO MAIL A NOTICE OF THE DETERMINATION OF A TENTATIVE STATE EQUALIZATION RATE, TENTATIVE SPECIAL FRANCHISE ASSESS- MENT, TENTATIVE ASSESSMENT CEILING OR OTHER TENTATIVE DETERMINATION OF THE COMMISSIONER THAT IS SUBJECT TO ADMINISTRATIVE REVIEW, THE COMMIS- S. 1509--C 23 A. 2009--C SIONER SHALL BE AUTHORIZED TO FURNISH THE REQUIRED NOTICE BY E-MAIL, OR BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, OR BOTH, AT HIS OR HER DISCRETION. WHEN PROVIDING NOTICE OF A TENTATIVE DETERMINATION BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, THE COMMISSIONER ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO INFORM THEM THAT THE NOTICE OF TENTATIVE DETERMINATION HAS BEEN POSTED ON THE WEBSITE. SUCH NOTICE OF TENTATIVE DETERMINATION SHALL NOT BE DEEMED COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER SHALL NOT BE REQUIRED TO FURNISH SUCH NOTICES BY POSTAL MAIL, EXCEPT AS PROVIDED BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION. (B) WHEN PROVIDING NOTICE OF A TENTATIVE DETERMINATION BY E-MAIL OR POSTING PURSUANT TO THIS SUBDIVISION, THE COMMISSIONER SHALL SPECIFY AN E-MAIL ADDRESS TO WHICH COMPLAINTS REGARDING SUCH TENTATIVE DETERMI- NATION MAY BE SENT. A COMPLAINT THAT IS SENT TO THE COMMISSIONER BY E-MAIL TO THE SPECIFIED E-MAIL ADDRESS BY THE DATE PRESCRIBED BY LAW FOR THE MAILING OF SUCH COMPLAINTS SHALL BE DEEMED VALID TO THE SAME EXTENT AS IF IT HAD BEEN SENT BY POSTAL MAIL. (C) WHEN A FINAL DETERMINATION IS MADE IN SUCH A MATTER, NOTICE OF THE FINAL DETERMINATION AND ANY CERTIFICATE RELATING THERETO SHALL BE FURNISHED BY E-MAIL OR BY A WEBSITE POSTING, OR BOTH AT THE COMMISSION- ER'S DISCRETION, AND NEED NOT BE PROVIDED BY POSTAL MAIL, EXCEPT AS PROVIDED BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION. WHEN PROVIDING NOTICE OF A FINAL DETERMINATION BY WEBSITE POSTING, THE COMMISSIONER ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO INFORM THEM THAT THE NOTICE OF FINAL DETERMINATION HAS BEEN POSTED ON THE WEBSITE. SUCH NOTICE OF FINAL DETERMINATION SHALL NOT BE DEEMED COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT. (D) IF AN ASSESSOR HAS ADVISED THE COMMISSIONER IN WRITING THAT HE OR SHE PREFERS TO RECEIVE THE NOTICES DESCRIBED IN THIS SUBDIVISION BY POSTAL MAIL, THE COMMISSIONER SHALL THEREAFTER SEND SUCH NOTICES TO THAT ASSESSOR BY POSTAL MAIL, AND NEED NOT SEND SUCH NOTICES TO THAT ASSESSOR BY E-MAIL. THE COMMISSIONER SHALL PRESCRIBE A FORM THAT ASSESSORS MAY USE TO ADVISE THE COMMISSIONER OF THEIR PREFERENCE FOR POSTAL MAIL. (E) IF THE COMMISSIONER LEARNS THAT AN E-MAIL ADDRESS TO WHICH A NOTICE HAS BEEN SENT PURSUANT TO THIS SUBDIVISION IS NOT VALID, AND THE COMMISSIONER CANNOT FIND A VALID E-MAIL ADDRESS FOR THAT PARTY, THE COMMISSIONER SHALL RESEND THE NOTICE TO THE PARTY BY POSTAL MAIL. IF THE COMMISSIONER DOES NOT HAVE A VALID E-MAIL ADDRESS FOR THE PARTY AT THE TIME THE NOTICE IS INITIALLY REQUIRED TO BE SENT, THE COMMISSIONER SHALL SEND THE NOTICE TO THAT PARTY BY POSTAL MAIL. (F) ON OR BEFORE NOVEMBER THIRTIETH, TWO THOUSAND NINETEEN, THE COMMISSIONER SHALL SEND A NOTICE BY POSTAL MAIL TO ASSESSORS, TO CHIEF EXECUTIVE OFFICERS OF ASSESSING UNITS, AND TO OWNERS OF SPECIAL FRAN- CHISE PROPERTY AND RAILROAD PROPERTY, INFORMING THEM OF THE PROVISIONS OF THIS SECTION. THE NOTICE TO BE SENT TO ASSESSORS SHALL INCLUDE A COPY OF THE FORM PRESCRIBED PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVI- SION. (G) AS USED IN THIS SUBDIVISION, THE TERM "POSTAL MAIL" SHALL MEAN MAIL THAT IS PHYSICALLY DELIVERED TO THE ADDRESSEE BY THE UNITED STATES POSTAL SERVICE. § 2. This act shall take effect immediately. SUBPART E S. 1509--C 24 A. 2009--C Section 1. Subdivision 4 of section 302 of the real property tax law, as amended by chapter 348 of the laws of 2007, is amended to read as follows: 4. The taxable status of a special franchise shall be determined on the basis of its value and its ownership as of the first day of [July] JANUARY of the year preceding the year in which the assessment roll on which such property is to be assessed is completed and filed in the office of the city or town clerk, except that taxable status of such properties shall be determined on the basis of ownership as of the first day of [July] JANUARY of the second year preceding the date required by law for the filing of the final assessment roll for purposes of all village assessment rolls. § 2. Subdivision 2 of section 606 of the real property tax law, as amended by chapter 743 of the laws of 2005 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: 2. In any assessing unit which has completed a revaluation since nine- teen hundred fifty-three or which does not contain property that was assessed in nineteen hundred fifty-three, the commissioner shall deter- mine the full value of such special franchise as of the [valuation date of the assessing unit] TAXABLE STATUS DATE SPECIFIED BY SUBDIVISION FOUR OF SECTION THREE HUNDRED TWO OF THIS CHAPTER. Such full value shall be determined by the commissioner for purposes of sections six hundred eight, six hundred fourteen and six hundred sixteen of this article. These full values shall be entered on the assessment roll at the level of assessment, which shall be the uniform percentage of value, as required by section five hundred two of this chapter, appearing on the tentative assessment roll upon which the assessment is entered. Whenever a final state equalization rate, or, in the case of a special assessing unit, a class equalization rate, is established that is different from a level of assessment applied pursuant to this paragraph, any public offi- cial having custody of that assessment roll is hereby authorized and directed to recompute these assessments to reflect that equalization rate, provided such final rate is established by the commissioner at least ten days prior to the date for levy of taxes against those assess- ments. § 3. This act shall take effect January 1, 2020. SUBPART F Section 1. The real property tax law is amended by adding a new section 575-a to read as follows: § 575-A. ELECTRIC GENERATING FACILITY ANNUAL REPORTS. 1. EVERY CORPO- RATION, COMPANY, ASSOCIATION, JOINT STOCK ASSOCIATION, PARTNERSHIP AND PERSON, THEIR LESSEES, TRUSTEES OR RECEIVERS APPOINTED BY ANY COURT WHATSOEVER, OWNING, OPERATING OR MANAGING ANY ELECTRIC GENERATING FACIL- ITY IN THE STATE SHALL ANNUALLY FILE WITH THE COMMISSIONER, BY APRIL THIRTIETH, A REPORT SHOWING THE INVENTORY, REVENUE, AND EXPENSES ASSOCI- ATED THEREWITH FOR THE MOST RECENT FISCAL YEAR. SUCH REPORT SHALL BE IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER. 2. WHEN USED IN THIS SECTION, "ELECTRIC GENERATING FACILITY" SHALL MEAN ANY FACILITY THAT GENERATES ELECTRICITY FOR SALE, DIRECTLY OR INDI- RECTLY, TO THE PUBLIC, INCLUDING THE LAND UPON WHICH THE FACILITY IS LOCATED, ANY EQUIPMENT USED IN SUCH GENERATION, AND EQUIPMENT LEADING FROM THE FACILITY TO THE INTERCONNECTION WITH THE ELECTRIC TRANSMISSION SYSTEM, BUT SHALL NOT INCLUDE: S. 1509--C 25 A. 2009--C (A) ANY EQUIPMENT IN THE ELECTRIC TRANSMISSION SYSTEM; AND (B) ANY ELECTRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A RESIDEN- TIAL CUSTOMER OF AN ELECTRIC GENERATING FACILITY, INCLUDING THE LAND UPON WHICH THE EQUIPMENT IS LOCATED, WHEN LOCATED AND USED AT HIS OR HER RESIDENCE. 3. EVERY ELECTRIC GENERATING FACILITY OWNER, OPERATOR, OR MANAGER FAILING TO MAKE THE REPORT REQUIRED BY THIS SECTION, OR FAILING TO MAKE ANY REPORT REQUIRED BY THE COMMISSIONER PURSUANT TO THIS SECTION WITHIN THE TIME SPECIFIED BY IT, SHALL FORFEIT TO THE PEOPLE OF THE STATE THE SUM OF UP TO TEN THOUSAND DOLLARS FOR EVERY SUCH FAILURE AND THE ADDI- TIONAL SUM OF UP TO ONE THOUSAND DOLLARS FOR EACH DAY THAT SUCH FAILURE CONTINUES. § 2. This act shall take effect January 1, 2020. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through F of this Part shall be as specifically set forth in the last section of such Subparts. PART K Section 1. Section 3-d of the general municipal law, as added by section 2 of part E of chapter 59 of the laws of 2018, is REPEALED. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 12, 2018. PART L Section 1. The tax law is amended by adding a new section 44 to read as follows: § 44. EMPLOYER-PROVIDED CHILD CARE CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN AMOUNT EQUAL TO THE PORTION OF THE CREDIT THAT IS ALLOWED TO THE TAXPAYER UNDER SECTION 45F OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE TO (I) QUALIFIED CHILD CARE EXPENDITURES PAID OR INCURRED WITH RESPECT TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN THE STATE, AND TO (II) QUALIFIED CHILD CARE RESOURCE AND REFERRAL EXPENDITURES PAID OR INCURRED WITH RESPECT TO THE TAXPAYER'S EMPLOYEES WORKING IN THE STATE. THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS. IF THE ENTITY OPERATING THE QUALI- FIED CHILD CARE FACILITY IS A PARTNERSHIP OR A NEW YORK S CORPORATION, THEN SUCH CAP SHALL BE APPLIED AT THE ENTITY LEVEL, SO THE AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF SUCH ENTITY IN A TAXABLE YEAR DOES NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS. (B) CREDIT RECAPTURE. IF THERE IS A CESSATION OF OPERATION OR CHANGE IN OWNERSHIP, AS DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE RELATING TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN THE STATE, THE TAXPAYER SHALL ADD BACK THE APPLICABLE RECAPTURE PERCENTAGE OF THE S. 1509--C 26 A. 2009--C CREDIT ALLOWED UNDER THIS SECTION IN ACCORDANCE WITH THE RECAPTURE PROVISIONS OF SECTION 45F OF THE INTERNAL REVENUE CODE, BUT THE RECAP- TURE AMOUNT SHALL BE LIMITED TO THE CREDIT ALLOWED UNDER THIS SECTION. (C) REPORTING REQUIREMENTS. A TAXPAYER THAT HAS CLAIMED A CREDIT UNDER THIS SECTION SHALL NOTIFY THE COMMISSIONER OF ANY CESSATION OF OPERA- TION, CHANGE IN OWNERSHIP, OR AGREEMENT TO ASSUME RECAPTURE LIABILITY AS SUCH TERMS ARE DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE, IN THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER. (D) DEFINITIONS. THE TERMS "QUALIFIED CHILD CARE EXPENDITURES", "QUAL- IFIED CHILD CARE FACILITY", "QUALIFIED CHILD CARE RESOURCE AND REFERRAL EXPENDITURE", "CESSATION OF OPERATION", "CHANGE OF OWNERSHIP", AND "APPLICABLE RECAPTURE PERCENTAGE" SHALL HAVE THE SAME MEANINGS AS IN SECTION 45F OF THE INTERNAL REVENUE CODE. (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53; (2) ARTICLE 22: SECTION 606(I), SUBSECTIONS (I) AND (JJJ); (3) ARTICLE 33: SECTION 1511, SUBDIVISION (DD). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: 53. EMPLOYER-PROVIDED CHILD CARE 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 MAY 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 WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED 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. (C) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER. § 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) EMPLOYER-PROVIDED CHILD AMOUNT OF CREDIT UNDER SUBDIVISION CARE CREDIT (JJJ) FIFTY-THREE 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) EMPLOYER-PROVIDED CHILD CARE 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 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 WILL BE PAID THEREON. S. 1509--C 27 A. 2009--C (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER. § 5. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) EMPLOYER-PROVIDED CHILD CARE 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. THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OR SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAXPAYER'S TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT, SEE SECTION FORTY-FOUR OF THIS CHAPTER. § 6. This act shall take effect immediately and apply to taxable years beginning on or after January 1, 2020. PART M Section 1. Paragraph 1 of subsection (b) of section 631 of the tax law is amended by adding a new subparagraph (D-1) to read as follows: (D-1) GAMBLING WINNINGS IN EXCESS OF FIVE THOUSAND DOLLARS FROM WAGER- ING TRANSACTIONS WITHIN THE STATE; OR § 2. Paragraph 2 of subsection (b) of section 671 of the tax law is amended by adding a new subparagraph (E) to read as follows: (E) ANY GAMBLING WINNINGS FROM A WAGERING TRANSACTION WITHIN THIS STATE, IF THE PROCEEDS FROM THE WAGER ARE SUBJECT TO WITHHOLDING UNDER SECTION THREE THOUSAND FOUR HUNDRED TWO OF THE INTERNAL REVENUE CODE. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019; provided, however that the amendments to subsection (b) of section 671 of the tax law made by section two of this act shall not affect the expiration of such subsection and shall be deemed to expire therewith. PART N Section 1. Subdivision (c) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: (c) For purposes of this [subdivision] SECTION, the term "eligible farmer" means a taxpayer whose federal gross income from farming AS DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER for the taxable year is at least two-thirds of excess federal gross income. Excess federal gross income means the amount of federal gross income from all sources for the taxable year in excess of thirty thousand dollars. For [the] purposes of this [subdivision] SECTION, payments from the state's farmland protection program, administered by the department S. 1509--C 28 A. 2009--C of agriculture and markets, shall be included as federal gross income from farming for otherwise eligible farmers. § 2. Section 42 of the tax law is amended by adding a new subdivision (d-1) to read as follows: (D-1) SPECIAL RULES. IF MORE THAN FIFTY PERCENT OF SUCH ELIGIBLE FARM- ER'S FEDERAL GROSS INCOME FROM FARMING IS FROM THE SALE OF WINE FROM A LICENSED FARM WINERY AS PROVIDED FOR IN ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW, OR FROM THE SALE OF CIDER FROM A LICENSED FARM CIDERY AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVER- AGE CONTROL LAW, THEN AN ELIGIBLE FARM EMPLOYEE OF SUCH ELIGIBLE FARMER SHALL BE INCLUDED FOR PURPOSES OF CALCULATING THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION ONLY IF SUCH ELIGIBLE FARM EMPLOYEE IS EMPLOYED BY SUCH ELIGIBLE FARMER ON QUALIFIED AGRICULTURAL PROPERTY AS DEFINED IN PARAGRAPH FOUR OF SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019. PART O Section 1. Section 12 of part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related infor- mation and relating to the voluntary compliance initiative, as amended by section 1 of part M of chapter 60 of the laws of 2016, is amended to read as follows: § 12. This act shall take effect immediately; provided, however, that (i) section one of this act shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service at any time with respect to "listed transactions" as described in such paragraph 1, and shall apply to all disclosure statements described in paragraph 1 of subdivision (a) of section 25 of the tax law, as added by section one of this act, that were required to be filed with the internal revenue service with respect to "reportable transactions" as described in such paragraph 1, other than "listed transactions", in which a taxpayer participated during any taxable year for which the statute of limitations for assessment has not expired as of the date this act shall take effect, and shall apply to returns or statements described in such paragraph 1 required to be filed by taxpayers (or persons as described in such paragraph) with the commissioner of taxation and finance on or after the sixtieth day after this act shall have become a law; and (ii) sections two through four and seven through nine of this act shall apply to any tax liability for which the statute of limitations on assessment has not expired as of the date this act shall take effect; and (iii) provided, further, that the provisions of this act, except section five of this act, shall expire and be deemed repealed July 1, [2019] 2024; provided, that, such expiration and repeal shall not affect any requirement imposed pursuant to this act. § 2. Subsection (aa) of section 685 of the tax law is REPEALED and a new subsection (aa) is added to read as follows: (AA) TAX PREPARER PENALTY.-- (1) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN OR CREDIT CLAIM FORM THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND, AND THE PREPARER KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT SAID POSITION S. 1509--C 29 A. 2009--C WAS NOT PROPER, AND SUCH POSITION WAS NOT ADEQUATELY DISCLOSED ON THE RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPAR- ER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS. (2) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN OR CREDIT CLAIM FORM THAT EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND AND THE UNDERSTATEMENT OF THE TAX LIABILITY OR THE INCREASED CLAIM FOR REFUND IS DUE TO THE PREPARER'S RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH PREPARER SHALL PAY A PENALTY OF BETWEEN FIVE HUNDRED AND FIVE THOUSAND DOLLARS. THE AMOUNT OF THE PENALTY PAYABLE BY ANY PERSON BY REASON OF THIS PARAGRAPH SHALL BE REDUCED BY THE AMOUNT OF THE PENALTY PAID BY SUCH PERSON BY REASON OF PARAGRAPH ONE OF THIS SUBSECTION. (3) FOR PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT OF TAX LIABILITY" MEANS ANY UNDERSTATEMENT OF THE NET AMOUNT PAYABLE WITH RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR ANY OVERSTATEMENT OF THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX. (4) FOR PURPOSES OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARED" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE. (5) THIS SUBSECTION SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION (R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH UNDERSTATEMENT. § 3. Subsection (u) of section 685 of the tax law is amended by adding three new paragraphs (1), (2), and (6) to read as follows: (1) FAILURE TO SIGN RETURN OR CLAIM FOR REFUND. IF A TAX RETURN PREPARER WHO IS REQUIRED PURSUANT TO PARAGRAPH ONE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE TO SIGN A RETURN OR CLAIM FOR REFUND FAILS TO COMPLY WITH SUCH REQUIREMENT WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, THE TAX RETURN PREPARER SHALL BE SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH FAILURE TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR BY THE TAX RETURN PREPARER MUST NOT EXCEED TEN THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO SIGN HIS OR HER NAME ON ANY RETURN THAT REQUIRES THE TAX RETURN PREPARER'S SIGNATURE DURING A SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE FIVE HUNDRED DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF THE PENALTY UNDER PARAGRAPH THREE OF SUBSECTION (G) OF SECTION THIRTY- TWO OF THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND. (2) FAILURE TO FURNISH IDENTIFYING NUMBER. IF A TAX RETURN PREPARER FAILS TO INCLUDE ANY IDENTIFYING NUMBER REQUIRED TO BE INCLUDED ON ANY RETURN OR CLAIM FOR REFUND PURSUANT TO PARAGRAPH TWO OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE, THE TAX RETURN PREPARER SHALL BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS FOR EACH SUCH FAILURE, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR YEAR MUST NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS; PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO INCLUDE THE IDENTIFYING NUMBER ON ONE OR MORE RETURNS DURING A SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH S. 1509--C 30 A. 2009--C FAILURE WILL BE TWO HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF THE PENALTY UNDER PARAGRAPH FOUR OF SUBSECTION (G) OF SECTION THIRTY-TWO OF THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND. (6) FOR PURPOSES OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARER" SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE. § 4. This act shall take effect immediately; provided, however, that the amendments to subsection (u) of section 685 of the tax law made by section three of this act shall apply to tax documents filed or required to be filed for taxable years beginning on or after January 1, 2019. PART P Section 1. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, as added by section 1 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over $43,000 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over $161,550 Over $323,200 BUT NOT OVER $19,674 plus 6.85% of excess $2,155,350 $323,200 over OVER $2,155,350 $145,177 PLUS 8.82% OF EXCESS OVER $2,155,350 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over $43,000 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over $161,550 Over $323,200 BUT NOT OVER $19,403 plus 6.85% of excess $2,155,350 over $323,200 OVER $2,155,350 $144,905 PLUS 8.82% OF EXCESS OVER $2,155,350 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: S. 1509--C 31 A. 2009--C If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over $27,900 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over $161,550 Over $323,200 BUT NOT OVER $2,155,350 $19,124 plus 6.85% of excess over $323,200 OVER $2,155,350 $144,626 PLUS 8.82% OF EXCESS OVER $2,155,350 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 BUT NOT OVER $18,834 plus 6.85% of $2,155,350 excess over $323,200 OVER $2,155,350 $144,336 PLUS 8.82% OF EXCESS OVER $2,155,350 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over $161,550 Over $323,200 BUT NOT OVER $18,544 plus 6.85% of $2,155,350 excess over $323,200 OVER $2,155,350 $144,047 PLUS 8.82% OF EXCESS OVER $2,155,350 § 2. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, as added by section 2 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over S. 1509--C 32 A. 2009--C $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over $32,200 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over $107,650 Over $269,300 BUT NOT OVER $16,524 plus 6.85% of $1,616,450 excess over $269,300 OVER $1,616,450 $108,804 PLUS 8.82% OF EXCESS OVER $1,616,450 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over $32,200 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over $107,650 Over $269,300 BUT NOT OVER $16,304 plus 6.85% of $1,616,450 excess over $269,300 OVER $1,616,450 $108,584 PLUS 8.82% OF EXCESS OVER $1,616,450 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over $20,900 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over $107,650 Over $269,300 BUT NOT OVER $16,079 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 $108,359 PLUS 8.82% OF EXCESS OVER $1,616,450 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over S. 1509--C 33 A. 2009--C $107,650 Over $269,300 BUT NOT OVER $15,845 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 $108,125 PLUS 8.82% OF EXCESS OVER $1,616,450 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 BUT NOT OVER $15,612 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 $107,892 PLUS 8.82% OF EXCESS OVER $1,616,450 § 3. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, as added by section 3 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (iii) For taxable years beginning in two thousand twenty the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over $21,400 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over $80,650 Over $215,400 BUT NOT OVER $13,288 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $72,345 PLUS 8.82% OF EXCESS OVER $1,077,550 (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over $21,400 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over S. 1509--C 34 A. 2009--C $80,650 Over $215,400 BUT NOT OVER $13,109 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $72,166 PLUS 8.82% OF EXCESS OVER $1,077,550 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over $13,900 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over $80,650 Over $215,400 BUT NOT OVER $12,926 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $71,984 PLUS 8.82% OF EXCESS OVER $1,077,550 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 BUT NOT OVER $12,738 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $71,796 PLUS 8.82% OF EXCESS OVER $1,077,550 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 BUT NOT OVER $12,550 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 $71,608 PLUS 8.82% OF EXCESS OVER $1,077,550 § 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 601 of the tax law, as amended by section 4 of part R of chapter 59 of the laws of 2017, is amended to read as follows: S. 1509--C 35 A. 2009--C (D) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over two million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand [twenty] TWENTY-FIVE. § 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 601 of the tax law, as amended by section 5 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (b) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (b) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million five hundred thousand dollars and the denominator is fifty thou- sand dollars. This subparagraph shall apply only to taxable years begin- ning on or after January first, two thousand twelve and before January first, two thousand [twenty] TWENTY-FIVE. § 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 601 of the tax law, as amended by section 6 of part R of chapter 59 of the laws of 2017, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (c) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (c) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand [twenty] TWENTY-FIVE. § 7. This act shall take effect immediately. PART Q Section 1. Subsection (g) of section 615 of the tax law, as amended by section 1 of part S of chapter 59 of the laws of 2017, is amended to read as follows: S. 1509--C 36 A. 2009--C (g) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, THE NEW YORK ITEM- IZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS MODI- FIED BY PARAGRAPH NINE OF SUBSECTION (C) OF THIS SECTION AND AS LIMITED BY THIS SUBSECTION. (1) With respect to an individual whose New York adjusted gross income is over one million dollars and no more than ten million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxa- ble years beginning after two thousand nine and before two thousand [twenty] TWENTY-FIVE. With respect to an individual whose New York adjusted gross income is over one million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning in two thousand nine or after two thousand [nineteen] TWENTY-FOUR. (2) With respect to an individual whose New York adjusted gross income is over ten million dollars, the New York itemized deduction shall be an amount equal to twenty-five percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning after two thousand nine and ending before two thousand [twenty] TWENTY-FIVE. § 2. Subdivision (g) of section 11-1715 of the administrative code of the city of New York, as amended by section 2 of part S of chapter 59 of the laws of 2017, is amended to read as follows: (g) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, THE CITY ITEMIZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS LIMITED BY THIS SUBDIVISION. (1) With respect to an individual whose New York adjusted gross income is over one million dollars but no more than ten million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxa- ble years beginning after two thousand nine and before two thousand [twenty] TWENTY-FIVE. With respect to an individual whose New York adjusted gross income is over one million dollars, the New York itemized deduction shall be an amount equal to fifty percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning in two thousand nine or after two thousand [nineteen] TWENTY-FOUR. (2) With respect to an individual whose New York adjusted gross income is over ten million dollars, the New York itemized deduction shall be an amount equal to twenty-five percent of any charitable contribution deduction allowed under section one hundred seventy of the internal revenue code for taxable years beginning after two thousand nine and ending before two thousand [twenty] TWENTY-FIVE. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART R Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as amended by chapter 315 of the laws of 2017, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter S. 1509--C 37 A. 2009--C provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state purchased before January first, two thousand [twenty] TWENTY-THREE. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seven- teen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as amended by chapter 315 of the laws of 2017, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thou- sand seven and on or after January first, two thousand eight and before January first, two thousand [twenty] TWENTY-THREE. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seventeen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 3. This act shall take effect immediately. PART S Section 1. Subdivision (e) of section 23 of part U of chapter 61 of the laws of 2011, as amended by section 5 of part G of chapter 60 of the laws of 2016, is amended to read as follows: (e) sections twenty-one and twenty-one-a of this act shall expire and be deemed repealed December 31, [2019] 2024. § 2. This act shall take effect immediately. PART T Section 1. Subdivision 3 of section 77 of the cooperative corporations law, as amended by chapter 429 of the laws of 1992, is amended to read as follows: 3. Such annual fee shall be paid for each calendar year on the fifteenth day of March next succeeding the close of such calendar year BUT SHALL NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY; PROVIDED, HOWEVER, THAT COOPERATIVE CORPORATIONS DESCRIBED IN SUBDIVI- SIONS ONE OR TWO OF THIS SECTION SHALL CONTINUE TO NOT BE SUBJECT TO THE FRANCHISE, LICENSE, AND CORPORATION TAXES REFERENCED IN SUCH SUBDIVI- SIONS OR, IN THE CASE OF COOPERATIVE COOPERATIONS DESCRIBED IN SUBDIVI- SION TWO OF THIS SECTION, THE TAX IMPOSED UNDER SECTION ONE-HUNDRED EIGHTY-SIX-A OF THE TAX LAW. § 2. Section 66 of the rural electric cooperative law, as amended by chapter 888 of the laws of 1983, is amended to read as follows: § 66. License fee in lieu of all franchise, excise, income, corpo- ration and sales and compensating use taxes. Each cooperative and foreign corporation doing business in this state pursuant to this chap- ter shall pay annually, on or before the first day of July, to the state tax commission, a fee of ten dollars, but shall be exempt from all other franchise, excise, income, corporation and sales and compensating use S. 1509--C 38 A. 2009--C taxes whatsoever. The exemption from the sales and compensating use taxes provided by this section shall not apply to the taxes imposed pursuant to section eleven hundred seven or eleven hundred eight of the tax law. Nothing contained in this section shall be deemed to exempt such corporations from collecting and paying over sales and compensating use taxes on retail sales of tangible personal property and services made by such corporations to purchasers required to pay such taxes imposed pursuant to article twenty-eight or authorized pursuant to the authority of article twenty-nine of the tax law. SUCH ANNUAL FEE SHALL NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY. § 3. This act shall take effect immediately. PART U Section 1. Paragraph (e) of subdivision 26 of section 210-B of the tax law, as amended by section 2 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (e) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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. § 2. Paragraph 5 of subsection (oo) of section 606 of the tax law, as amended by section 1 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (5) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, 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 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 subsection for an additional two calen- dar years. § 3. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as amended by section 3 of part RR of chapter 59 of the laws of 2018, is amended to read as follows: (5) [To] EXCEPT IN THE CASE OF A QUALIFIED REHABILITATION PROJECT UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED BY THE STATE, THAT IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, TO be eligible for the credit allowable under this subdivision, the rehabilitation project shall be in S. 1509--C 39 A. 2009--C 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 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-a. Clause (iv) of subparagraph (A) of paragraph 5 of subsection (pp) of section 606 of the tax law, as amended by chapter 239 of the laws of 2009, is amended to read as follows: (iv) (1) which is in whole or in part a targeted area residence within the meaning of section 143(j) of the internal revenue code; or (2) is located within a census tract which is identified as being at or below one hundred percent of the state median family income in the most recent federal census; OR (3) WHICH IS LOCATED IN A CITY WITH A POPULATION OF LESS THAN ONE MILLION WITH A POVERTY RATE GREATER THAN FIFTEEN PERCENT, ROUNDED TO THE NEAREST WHOLE NUMBER, IN THE MOST RECENT FIVE YEAR ESTI- MATE FROM THE AMERICAN COMMUNITY SURVEY PUBLISHED BY THE UNITED STATES CENSUS BUREAU. § 4. This act shall take effect immediately; provided however, sections one, two and three of this act shall apply to taxable years beginning on and after January 1, 2020 and section three-a of this act shall apply to taxable years beginning on and after January 1, 2019. PART V Section 1. Subdivision (jj) of section 1115 of the tax law, as added by section 1 of part UU of chapter 59 of the laws of 2015, is amended to read as follows: (jj) Tangible personal property or services otherwise taxable under this article sold to a related person shall not be subject to the taxes imposed by section eleven hundred five of this article or the compensat- ing use tax imposed under section eleven hundred ten of this article where the purchaser can show that the following conditions have been met to the extent they are applicable: (1)(i) the vendor and the purchaser are referenced as either a "covered company" as described in section 243.2(f) or a "material entity" as described in section 243.2(l) of the Code of Federal Regulations in a resolution plan that has been submitted to an agency of the United States for the purpose of satisfying subpara- graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- Frank Wall Street Reform and Consumer Protection Act (the "Act") or any successor law, or (ii) the vendor and the purchaser are separate legal entities pursuant to a divestiture directed pursuant to subparagraph 5 of paragraph (d) of section one hundred sixty-five of such act or any successor law; (2) the sale would not have occurred between such related entities were it not for such resolution plan or divestiture; and (3) in acquiring such property or services, the vendor did not claim an exemption from the tax imposed by this state or another state based on the vendor's intent to resell such services or property. A person is related to another person for purposes of this subdivision if the person bears a relationship to such person described in section two hundred sixty-seven of the internal revenue code. The exemption provided by this subdivision shall not apply to sales made, services rendered, or uses occurring after June thirtieth, two thousand [nineteen] TWENTY-ONE, S. 1509--C 40 A. 2009--C except with respect to sales made, services rendered, or uses occurring pursuant to binding contracts entered into on or before such date; but in no case shall such exemption apply after June thirtieth, two thousand twenty-four. § 2. This act shall take effect immediately. PART W Section 1. The mental hygiene law is amended by adding a new section 32.38 to read as follows: § 32.38 THE RECOVERY TAX CREDIT PROGRAM. (A) AUTHORIZATION. THE COMMISSIONER IS AUTHORIZED TO AND SHALL ESTAB- LISH AND ADMINISTER THE RECOVERY TAX CREDIT PROGRAM TO PROVIDE TAX INCENTIVES TO CERTIFIED EMPLOYERS FOR EMPLOYING ELIGIBLE INDIVIDUALS IN RECOVERY FROM A SUBSTANCE USE DISORDER IN PART-TIME AND FULL-TIME POSI- TIONS IN THE STATE. THE COMMISSIONER IS AUTHORIZED TO ALLOCATE UP TO TWO MILLION DOLLARS OF TAX CREDITS ANNUALLY FOR THE RECOVERY TAX CREDIT PROGRAM BEGINNING IN THE YEAR TWO THOUSAND TWENTY. (B) DEFINITIONS. 1. THE TERM "CERTIFIED EMPLOYER" MEANS AN EMPLOYER THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER AFTER THE COMMISSIONER HAS DETERMINED THAT THE EMPLOYER: (I) PROVIDES A RECOVERY SUPPORTIVE ENVIRONMENT FOR THEIR EMPLOYEES EVIDENCED BY A FORMAL WORKING RELATIONSHIP WITH A LOCAL RECOVERY OR TREATMENT PROVIDER CERTIFIED BY THE OFFICE TO PROVIDE SUPPORT FOR EMPLOYERS INCLUDING ANY NECESSARY ASSISTANCE IN THE HIRING PROCESS OF ELIGIBLE INDIVIDUALS IN RECOVERY FROM A SUBSTANCE USE DISORDER AND TRAINING FOR EMPLOYERS OR SUPERVISORS; AND (II) FULFILLS THE ELIGIBILITY CRITERIA SET FORTH IN THIS SECTION AND BY THE COMMISSIONER TO PARTICIPATE IN THE RECOVERY TAX CREDIT PROGRAM ESTABLISHED IN THIS SECTION. 2. THE TERM "ELIGIBLE INDIVIDUAL" MEANS AN INDIVIDUAL WITH A SUBSTANCE USE DISORDER AS THAT TERM IS DEFINED IN SECTION 1.03 OF THIS CHAPTER WHO IS IN A STATE OF WELLNESS WHERE THERE IS AN ABATEMENT OF SIGNS AND SYMP- TOMS THAT CHARACTERIZE ACTIVE ADDICTION AND HAS DEMONSTRATED TO THE QUALIFIED EMPLOYER'S SATISFACTION, PURSUANT TO GUIDELINES ESTABLISHED BY THE OFFICE, THAT HE OR SHE HAS COMPLETED A COURSE OF TREATMENT OR IS CURRENTLY IN RECEIPT OF TREATMENT FOR SUCH SUBSTANCE USE DISORDER. A RELAPSE IN AN INDIVIDUAL'S STATE OF WELLNESS SHALL NOT MAKE THE INDIVID- UAL INELIGIBLE, SO LONG AS SUCH INDIVIDUAL SHOWS A CONTINUED COMMITMENT TO RECOVERY THAT ALIGNS WITH AN INDIVIDUAL'S RELAPSE PREVENTION PLAN, DISCHARGE PLAN, AND/OR RECOVERY PLAN. (C) APPLICATION AND APPROVAL PROCESS. 1. TO PARTICIPATE IN THE PROGRAM ESTABLISHED BY THIS SECTION, AN EMPLOYER MUST, IN A FORM PRESCRIBED BY THE COMMISSIONER, APPLY ANNUALLY TO THE OFFICE BY JANUARY FIFTEENTH TO CLAIM CREDIT BASED ON ELIGIBLE INDIVIDUALS EMPLOYED DURING THE PRECEDING CALENDAR YEAR. AS PART OF SUCH APPLICATION, AN EMPLOYER MUST: (I) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS TAX INFORMATION WITH THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES. HOWEVER, ANY INFORMATION SHARED BECAUSE OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW. (II) ALLOW THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AND ITS AGENTS ACCESS TO LIMITED AND SPECIFIC INFORMATION NECESSARY TO MONI- TOR COMPLIANCE WITH PROGRAM ELIGIBILITY REQUIREMENTS. SUCH INFORMATION SHALL BE CONFIDENTIAL AND ONLY USED FOR THE STATED PURPOSE OF THIS SECTION. S. 1509--C 41 A. 2009--C (III) DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED PROGRAM ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY, INCLUDING THE NUMBER OF HOURS WORKED BY ANY ELIGIBLE INDIVIDUAL, FOR THE COMMISSIONER TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED. 2. (I) AFTER REVIEWING THE APPLICATION AND FINDING IT SUFFICIENT, THE COMMISSIONER SHALL ISSUE A CERTIFICATE OF TAX CREDIT BY MARCH THIRTY- FIRST. SUCH CERTIFICATE SHALL INCLUDE, BUT NOT BE LIMITED TO, THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE CERTIFIED EMPLOYER, THE AMOUNT OF CREDIT THAT THE CERTIFIED EMPLOYER MAY CLAIM, AND ANY OTHER INFORMA- TION THE COMMISSIONER OF TAXATION AND FINANCE DETERMINES IS NECESSARY. (II) IN DETERMINING THE AMOUNT OF CREDIT THAT ANY EMPLOYER MAY CLAIM, THE COMMISSIONER SHALL REVIEW ALL CLAIMS SUBMITTED FOR CREDIT BY EMPLOY- ERS AND, TO THE EXTENT THAT THE TOTAL AMOUNT CLAIMED BY EMPLOYERS EXCEEDS THE AMOUNT ALLOCATED FOR THE PROGRAM IN THAT CALENDAR YEAR, SHALL ISSUE CREDITS ON A PRO-RATA BASIS CORRESPONDING TO EACH CLAIMANT'S SHARE OF THE TOTAL CLAIMED AMOUNT. (D) ELIGIBILITY. A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CRED- IT EQUAL TO THE PRODUCT OF ONE DOLLAR AND THE NUMBER OF HOURS WORKED BY EACH ELIGIBLE INDIVIDUAL DURING SUCH ELIGIBLE INDIVIDUAL'S PERIOD OF EMPLOYMENT. THE CREDIT SHALL NOT BE ALLOWED UNLESS THE ELIGIBLE INDI- VIDUAL HAS WORKED IN STATE FOR A MINIMUM OF FIVE HUNDRED HOURS FOR THE CERTIFIED EMPLOYER, AND THE CREDIT CANNOT EXCEED TWO THOUSAND DOLLARS PER ELIGIBLE INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYER IN THE STATE. THE CERTIFIED EMPLOYER MAY CLAIM A CREDIT FOR EACH ELIGIBLE EMPLOYEE STARTING ON THE DAY THE EMPLOYEE IS HIRED AND ENDS ON DECEMBER THIRTY- FIRST OF THE IMMEDIATELY SUCCEEDING CALENDAR YEAR OR THE LAST DAY OF THE EMPLOYEE'S EMPLOYMENT BY THE CERTIFIED EMPLOYER, WHICHEVER COMES FIRST. IF AN EMPLOYEE HAS WORKED IN EXCESS OF FIVE HUNDRED HOURS BETWEEN THE DATE OF HIRING AND DECEMBER THIRTY-FIRST OF THAT YEAR, AN EMPLOYER CAN ELECT TO COMPUTE AND CLAIM A CREDIT FOR SUCH EMPLOYEE IN THAT YEAR BASED ON THE HOURS WORKED BY DECEMBER THIRTY-FIRST. ALTERNATIVELY, THE EMPLOY- ER MAY ELECT TO INCLUDE SUCH INDIVIDUAL IN THE COMPUTATION OF THE CREDIT IN THE YEAR IMMEDIATELY SUCCEEDING THE YEAR IN WHICH THE EMPLOYEE WAS HIRED. IN SUCH CASE, THE CREDIT SHALL BE COMPUTED ON THE BASIS OF ALL HOURS WORKED BY SUCH ELIGIBLE INDIVIDUAL FROM THE DATE OF HIRE TO THE EARLIER OF THE LAST DAY OF EMPLOYMENT OR DECEMBER THIRTY-FIRST OF THE SUCCEEDING YEAR. HOWEVER, IN NO EVENT MAY AN EMPLOYEE GENERATE CREDIT FOR HOURS WORKED IN EXCESS OF TWO THOUSAND HOURS. AN EMPLOYER MAY CLAIM CREDIT ONLY ONCE WITH RESPECT TO ANY ELIGIBLE INDIVIDUAL AND MAY NOT AGGREGATE HOURS OF TWO OR MORE EMPLOYEES TO REACH THE MINIMUM NUMBER OF HOURS. (E) DUTIES OF THE COMMISSIONER. THE COMMISSIONER SHALL ANNUALLY PROVIDE TO THE COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE INFORMATION ABOUT THE PROGRAM INCLUDING, BUT NOT LIMITED TO, THE NUMBER OF CERTIFIED EMPLOYERS THEN PARTICIPATING IN THE PROGRAM, UNIQUE IDENTI- FYING INFORMATION FOR EACH CERTIFIED EMPLOYER, THE NUMBER OF ELIGIBLE INDIVIDUALS EMPLOYED BY EACH CERTIFIED EMPLOYER, UNIQUE IDENTIFYING INFORMATION FOR EACH ELIGIBLE INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYERS, THE NUMBER OF HOURS WORKED BY SUCH ELIGIBLE INDIVIDUALS, THE TOTAL DOLLAR AMOUNT OF CLAIMS FOR CREDIT, AND THE DOLLAR AMOUNT OF CRED- IT GRANTED TO EACH CERTIFIED EMPLOYER. (F) CERTIFIED EMPLOYER'S TAXABLE YEAR. IF THE CERTIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR WHICH THE CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE CERTIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL S. 1509--C 42 A. 2009--C BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CRED- IT ON THE RETURN FOR THE FISCAL YEAR THAT INCLUDES THE LAST DAY OF THE CALENDAR YEAR COVERED BY THE CERTIFICATE OF TAX CREDIT. (G) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THE TAX LAW: 1. ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53. 2. ARTICLE 22: SECTION 606, SUBSECTION (JJJ). 3. ARTICLE 33: SECTION 1511, SUBDIVISION (DD). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 53 to read as follows: 53. RECOVERY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A CERTIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP OR MEMBER OF A LIMITED LIABILITY COMPANY THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO THAT AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON. (C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 3. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows: (XLIV) RECOVERY TAX CREDIT UNDER AMOUNT OF CREDIT UNDER SUBSECTION (JJJ) SUBDIVISION FIFTY-THREE 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) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. 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 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER S. 1509--C 43 A. 2009--C PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABIL- ITY COMPANY OR S CORPORATION. (2) OVERPAYMENT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXA- BLE 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, NO INTEREST WILL BE PAID THEREON. (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 5. Section 1511 of the tax law is amended by adding a new subdivi- sion (dd) to read as follows: (DD) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP OR MEMBER OF A LIMITED LIABILITY COMPANY THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY. (2) 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 MINIMUM TAX FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE OR BY SECTION FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR 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, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW. § 6. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2020 and shall apply to those eligible individuals hired after this act shall take effect. PART X Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 20 to read as follows: (20) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE TERM "CONTRIBUTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF S. 1509--C 44 A. 2009--C SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE. § 2. Paragraph 1 of subdivision (b) of section 1503 of the tax law is amended by adding a new subparagraph (T) to read as follows: (T) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE TERM "CONTRIB- UTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE. § 3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis- trative code of the city of New York is amended by adding a new subpara- graph 14 to read as follows: (14) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE TERM "CONTRIBUTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018. PART Y Intentionally Omitted PART Z Section 1. Paragraph 3 of subdivision (a) and paragraphs 2 and 5 of subdivision (c) of section 43 of the tax law, as added by section 7 of part K of chapter 59 of the laws of 2017, are amended to read as follows: (3) The total amount of credit allowable to a qualified life sciences company, or, if the life sciences company is properly included or required to be included in a combined report, to the combined group, taken in the aggregate, shall not exceed five hundred thousand dollars in any taxable year. If the [life sciences company] TAXPAYER is a part- ner in a partnership THAT IS A LIFE SCIENCES COMPANY or A shareholder of a New York S corporation THAT IS A LIFE SCIENCES COMPANY, then the total amount of credit allowable shall be applied at the entity level, so that the total amount of credit allowable to all the partners or shareholders of each such entity, taken in the aggregate, does not exceed five hundred thousand dollars in any taxable year. (2) "New business" means any business that qualifies as a new business under either paragraph (f) of subdivision one of section two hundred ten-B or paragraph ten of subsection [one] (A) of section six hundred six of this chapter. (5) "Related person" means a related person as defined in subparagraph [(c)] (C) of paragraph three of subsection (b) of section 465 of the internal revenue code. For this purpose, a "related person" shall include an entity that would have qualified as a "related person" if it had not been dissolved, liquidated, merged with another entity or other- wise ceased to exist or operate. § 2. Subdivision 5 of section 209 of the tax law, as amended by section 5 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 5. For any taxable year of a real estate investment trust as defined in section eight hundred fifty-six of the internal revenue code in which such trust is subject to federal income taxation under section eight S. 1509--C 45 A. 2009--C hundred fifty-seven of such code, such trust shall be subject to a tax computed under either paragraph (a) or (d) of subdivision one of section two hundred ten of this chapter, whichever is greater, and shall not be subject to any tax under article thirty-three of this chapter except for a captive REIT required to file a combined return under subdivision (f) of section fifteen hundred fifteen of this chapter. In the case of such a real estate investment trust, including a captive REIT as defined in section two of this chapter, the term "entire net income" means "real estate investment trust taxable income" as defined in paragraph two of subdivision (b) of section eight hundred fifty-seven (as modified by section eight hundred fifty-eight) of the internal revenue code [plus the amount taxable under paragraph three of subdivision (b) of section eight hundred fifty-seven of such code], subject to the modifications required by subdivision nine of section two hundred eight of this arti- cle. § 3. Paragraph (a) of subdivision 8 of section 211 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (a) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for any tax commissioner, any officer or employee of the department [of taxation and finance], or any person who, pursuant to this section, is permitted to inspect any report, or to whom any information contained in any 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 report filed pursuant to this article, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report under this article. The officers charged with the custody of such 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 or 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 or the commissioner is a party or a claimant, or on behalf of any party to any action or proceed- ing under the provisions of this article when the reports or 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 reports or of the facts shown thereby as are pertinent to the action or proceeding, and no more. The commissioner may, nevertheless, publish a copy or a summary of any determination or decision rendered after the formal hearing provided for in section one thousand eighty-nine of this chapter. Nothing herein shall be construed to prohibit the delivery to a corporation or its duly authorized repre- sentative of a copy of any report filed by it, nor to prohibit the publication of statistics so classified as to prevent the identification of particular reports and the items thereof; or the publication of delinquent lists showing the names of taxpayers who have failed to pay their taxes at the time and in the manner provided by section two hundred thirteen of this chapter together with any relevant information which in the opinion of the commissioner may assist in the collection of such delinquent taxes; or the inspection by the attorney general or other legal representatives of the state of the report of any corpo- ration which shall bring action to set aside or review the tax based thereon, or against which an action or proceeding under this chapter has been recommended by the commissioner of taxation and finance or the S. 1509--C 46 A. 2009--C attorney general or has been instituted; or the inspection of the reports of any corporation 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 tax paid by such corporation under this article[; and nothing in this chapter shall be construed to prohibit the publication of the issuer's allocation percentage of any corporation, as such term "issuer's allocation percentage" is defined in subparagraph one of paragraph (b) of subdivision three of section two hundred ten of this article]. § 4. Subdivision (a) of section 213-b of the tax law, as amended by section 10 of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (a) First installments for certain taxpayers.--In privilege periods of twelve months ending at any time during the calendar year nineteen hundred seventy and thereafter, every taxpayer subject to the tax imposed by section two hundred nine of this chapter must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, for taxable years beginning before January first, two thousand sixteen, and must pay on or before the fifteenth day of the third month of such priv- ilege periods, for taxable years beginning on or after January first, two thousand sixteen, an amount equal to (i) twenty-five percent of the second preceding year's tax if the second preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the second preceding year's tax if the second preceding year's tax exceeded one hundred thousand dollars. If the second preceding year's tax under section two hundred nine of this chapter exceeded one thousand dollars and the taxpayer is subject to the tax surcharge imposed by section two hundred nine-B of this chapter, the taxpayer must also pay with the tax surcharge report required to be filed for the second preceding privilege period, or with an application for extension of the time for filing the report, for taxable years beginning before January first, two thousand sixteen, and must pay on or before the fifteenth day of the third month of such privilege periods, for taxable years beginning on or after January first, two thousand sixteen, an amount equal to (i) twenty-five percent of the tax surcharge imposed for the second preceding year if the second preceding year's tax was equal to or less than one hundred thousand dollars, or (ii) forty percent of the tax surcharge imposed for the second preceding year if the second preceding year's tax exceeded one hundred thousand dollars. Provided, however, that every taxpayer that is [an] A NEW YORK S corpo- ration must pay with the report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, an amount equal to (i) twenty-five percent of the preceding year's tax if the preceding year's tax exceeded one thousand dollars but was equal to or less than one hundred thousand dollars, or (ii) forty percent of the preceding year's tax if the preceding year's tax exceeded one hundred thousand dollars. [If the preceding year's tax under section two hundred nine of this article exceeded one thousand dollars and such taxpayer that is an S corporation is subject to the tax surcharge imposed by section two hundred nine-B of this article, the taxpayer must also pay with the tax surcharge report required to be filed for the preceding privilege period, or with an application for extension of the time for filing the report, an amount equal to (i) twenty-five percent of the tax surcharge imposed for the preceding year if the preceding year's tax was equal equal to or less than one hundred S. 1509--C 47 A. 2009--C thousand dollars, or (ii) forty percent of the tax surcharge imposed for the preceding year if the preceding year's tax exceeded one hundred thousand dollars.] § 5. Subdivision (e) of section 213-b of the tax law, as amended by chapter 166 of the laws of 1991, the subdivision heading as amended by section 10-b of part Q of chapter 60 of the laws of 2016, is amended to read as follows: (e) Interest on certain installments based on the second preceding year's tax.--Notwithstanding the provisions of section one thousand eighty-eight of this chapter or of section sixteen of the state finance law, if an amount paid pursuant to subdivision (a) exceeds the tax or tax surcharge, respectively, shown on the report required to be filed by the taxpayer for the privilege period during which the amount was paid, interest shall be allowed and paid on the amount by which the amount so paid pursuant to such subdivision exceeds such tax or tax surcharge. In the case of amounts so paid pursuant to subdivision (a), such interest shall be allowed and paid at the overpayment rate set by the commission- er of taxation and finance pursuant to section one thousand ninety-six of this chapter, or if no rate is set, at the rate of six per centum per annum from the date of payment of the amount so paid pursuant to such subdivision to the fifteenth day of the [third] FOURTH month following the close of the taxable year, provided, however, that no interest shall be allowed or paid under this subdivision if the amount thereof is less than one dollar or if such interest becomes payable solely because of a carryback of a net operating loss in a subsequent privilege period. § 6. Subdivision (a) of section 1503 of the tax law, as amended by chapter 817 of the laws of 1987, is amended to read as follows: (a) The entire net income of a taxpayer shall be its total net income from all sources which shall be presumably the same as the life insur- ance company taxable income (which shall include, in the case of a stock life insurance company [which] THAT has A BALANCE, AS DETERMINED AS OF THE CLOSE OF SUCH COMPANY'S LAST TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, IN an existing policyholders surplus account, AS SUCH TERM IS DEFINED IN SECTION 815 OF THE INTERNAL REVENUE CODE AS SUCH SECTION WAS IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount of [direct and indirect distributions during the taxable year to shareholders from such account] ONE-EIGHTH OF SUCH BALANCE), taxable income of a partnership or taxable income, but not alternative minimum taxable income, as the case may be, which the taxpayer is required to report to the United States treasury department, for the taxable year or, in the case of a corporation exempt from federal income tax (other than the tax on unrelated business taxa- ble income imposed under section 511 of the internal revenue code) but not exempt from tax under section fifteen hundred one, the taxable income which such taxpayer would have been required to report but for such exemption, except as hereinafter provided. § 7. Intentionally omitted. § 8. Section 2 of chapter 369 of the laws of 2018 amending the tax law relating to unrelated business taxable income of a taxpayer, is amended to read as follows: § 2. This act shall take effect immediately and shall apply to [taxa- ble years beginning] AMOUNTS PAID OR INCURRED on and after January 1, 2018. § 9. Paragraph (b) of subdivision 8 of section 11-602 of the adminis- trative code of the city of New York is amended by adding a new subpara- graph 20 to read as follows: S. 1509--C 48 A. 2009--C (20) THE AMOUNT OF ANY FEDERAL DEDUCTION THAT WOULD HAVE BEEN ALLOWED PURSUANT TO SECTION 250(A)(1)(A) OF THE INTERNAL REVENUE CODE IF THE TAXPAYER HAD NOT MADE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER ONE OF THE INTERNAL REVENUE CODE. § 10. Clause (i) of subparagraph 1 of paragraph (b) of subdivision 3 of section 11-604 of the administrative code of the city of New York, as added by chapter 241 of the laws of 1989, is amended to read as follows: (i) In the case of an issuer or obligor subject to tax under this subchapter, SUBCHAPTER THREE-A or subchapter four of this chapter, or subject to tax as a utility corporation under chapter eleven of this title, the issuer's allocation percentage shall be the percentage of the appropriate measure (as defined hereinafter) which is required to be allocated within the city on the report or reports, if any, required of the issuer or obligor under this title for the preceding year. The appropriate measure referred to in the preceding sentence shall be: in the case of an issuer or obligor subject to this subchapter OR SUBCHAP- TER THREE-A, entire capital; in the case of an issuer or obligor subject to subchapter four of this chapter, issued capital stock; in the case of an issuer or obligor subject to chapter eleven of this title as a utili- ty corporation, gross income. § 11. This act shall take effect immediately, provided, however, that: (i) section one of this act shall be deemed to have been in full force and effect on and after the effective date of part K of chapter 59 of the laws of 2017; (ii) sections two and six of this act shall be deemed to have been in full force and effect on and after the effective date of part KK of chapter 59 of the laws of 2018; provided, however, that section six of this act shall apply to taxable years beginning on or after January 1, 2018 through taxable years beginning on or before January 1, 2025; (iii) section three of this act shall be deemed to have been in full force and effect on and after the effective date of part A of chapter 59 of the laws of 2014; (iv) sections four and five of this act shall be deemed to have been in full force and effect on and after the effective date of part Q of chapter 60 of the laws of 2016; (v) section eight of this act shall be deemed to have been in full force and effect on and after the effective date of chapter 369 of the laws of 2018; (vi) section nine of this act shall apply to taxable years beginning on and after January 1, 2018. PART AA Section 1. Section 487 of the real property tax law is amended by adding a new subdivision 10 to read as follows: 10. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION, ON OR AFTER APRIL FIRST, TWO THOUSAND NINETEEN, A COUNTY, CITY, TOWN OR VILLAGE MAY BY LOCAL LAW OR A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT TO WHICH ARTICLE FIFTY-TWO OF THE EDUCATION LAW APPLIES, MAY BY RESOLUTION PROVIDE THAT REAL PROPERTY THAT COMPRISES OR INCLUDES A SOLAR OR WIND ENERGY SYSTEM, FARM WASTE ENERGY SYSTEM, MICROHYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM, MICROCOMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM, ELECTRIC ENERGY STORAGE SYSTEM, OR FUEL-FLEXIBLE LINEAR GENERATOR AS SUCH TERMS ARE DEFINED IN PARA- GRAPHS (B), (F), (H), (J), (L), (N), AND (O) OF SUBDIVISION ONE OF THIS SECTION (HEREINAFTER, INDIVIDUALLY OR COLLECTIVELY, "ENERGY SYSTEM"), S. 1509--C 49 A. 2009--C SHALL BE PERMANENTLY EXEMPT FROM ANY TAXATION, SPECIAL AD VALOREM LEVIES, AND SPECIAL ASSESSMENTS TO THE EXTENT PROVIDED IN SECTION FOUR HUNDRED NINETY OF THIS ARTICLE, AND THE OWNER OF SUCH PROPERTY SHALL NOT BE SUBJECT TO ANY REQUIREMENT TO ENTER INTO A CONTRACT FOR PAYMENTS IN LIEU OF TAXES IN ACCORDANCE WITH SUBDIVISION NINE OF THIS SECTION, IF: (A) THE ENERGY SYSTEM IS INSTALLED ON REAL PROPERTY THAT IS OWNED OR CONTROLLED BY THE STATE OF NEW YORK, A DEPARTMENT OR AGENCY THEREOF, OR A STATE AUTHORITY AS THAT TERM IS DEFINED BY SUBDIVISION ONE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW; AND (B) THE STATE OF NEW YORK, A DEPARTMENT OR AGENCY THEREOF, OR A STATE AUTHORITY AS THAT TERM IS DEFINED BY SUBDIVISION ONE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW HAS AGREED TO PURCHASE THE ENERGY PRODUCED BY SUCH ENERGY SYSTEM OR THE ENVIRONMENTAL CREDITS OR ATTRIBUTES CREATED BY VIRTUE OF THE ENERGY SYSTEM'S OPERATION, IN ACCORDANCE WITH A WRITTEN AGREEMENT WITH THE OWNER OR OPERATOR OF SUCH ENERGY SYSTEM. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER OF THE REAL PROPERTY ON A FORM PRESCRIBED BY THE COMMISSIONER, WHICH APPLICATION SHALL BE FILED WITH THE ASSESSOR OF THE APPROPRIATE COUNTY, CITY, TOWN OR VILLAGE ON OR BEFORE THE TAXABLE STATUS DATE OF SUCH COUNTY, CITY, TOWN OR VILLAGE. § 2. Section 490 of the real property tax law, as amended by chapter 87 of the laws of 2001, is amended to read as follows: § 490. Exemption from special ad valorem levies and special assess- ments. Real property exempt from taxation pursuant to subdivision two of section four hundred, subdivision one of section four hundred four, subdivision one of section four hundred six, sections four hundred eight, four hundred ten, four hundred ten-a, four hundred ten-b, four hundred eighteen, four hundred twenty-a, four hundred twenty-b, four hundred twenty-two, four hundred twenty-six, four hundred twenty-seven, four hundred twenty-eight, four hundred thirty, four hundred thirty-two, four hundred thirty-four, four hundred thirty-six, four hundred thirty- eight, four hundred fifty, four hundred fifty-two, four hundred fifty- four, four hundred fifty-six, four hundred sixty-four, four hundred seventy-two, four hundred seventy-four, [and] four hundred eighty-five AND SUBDIVISION TEN OF SECTION FOUR HUNDRED EIGHTY-SEVEN of this chapter shall also be exempt from special ad valorem levies and special assess- ments against real property located outside cities and villages for a special improvement or service or a special district improvement or service and special ad valorem levies and special assessments imposed by a county improvement district or district corporation except (1) those levied to pay for the costs, including interest and incidental and preliminary costs, of the acquisition, installation, construction, reconstruction and enlargement of or additions to the following improve- ments, including original equipment, furnishings, machinery or appara- tus, and the replacements thereof: water supply and distribution systems; sewer systems (either sanitary or surface drainage or both, including purification, treatment or disposal plants or buildings); waterways and drainage improvements; street, highway, road and parkway improvements (including sidewalks, curbs, gutters, drainage, landscap- ing, grading or improving the right of way) and (2) special assessments payable in installments on an indebtedness including interest contracted prior to July first, nineteen hundred fifty-three, pursuant to section two hundred forty-two of the town law or pursuant to any other compara- ble provision of law. § 3. This act shall take effect immediately. PART BB S. 1509--C 50 A. 2009--C Section 1. Subdivision 1 of section 107 of the racing, pari-mutuel wagering and breeding law, as added by section 1 of part A of chapter 60 of the laws of 2012, is amended as follows: 1. No person shall be appointed to or employed by the commission if, during the period commencing three years prior to appointment or employ- ment, [said] SUCH person held any direct or indirect interest in, or employment by, any corporation, association or person engaged in gaming activity within the state. Prior to appointment or employment, each member, officer or employee of the commission shall swear or affirm that he or she possesses no interest in any corporation or association hold- ing a franchise, license, registration, certificate or permit issued by the commission. Thereafter, no member or officer of the commission shall hold any direct interest in or be employed by any applicant for or by any corporation, association or person holding a license, registration, franchise, certificate or permit issued by the commission for a period of four years commencing on the date his or her membership with the commission terminates. Further, no employee of the commission may acquire any direct or indirect interest in, or accept employment with, any applicant for or any person holding a license, registration, fran- chise, certificate or permit issued by the commission for a period of two years commencing at the termination of employment with the commis- sion. THE COMMISSION MAY, BY RESOLUTION ADOPTED BY UNANIMOUS VOTE AT A PROPERLY NOTICED PUBLIC MEETING, WAIVE FOR GOOD CAUSE THE PRE-EMPLOYMENT RESTRICTIONS ENUMERATED IN THIS SUBDIVISION FOR A PROSPECTIVE EMPLOYEE WHOSE DUTIES AND RESPONSIBILITIES ARE PRIMARILY ON RACETRACK GROUNDS. SUCH ADOPTED RESOLUTION SHALL STATE THE REASONS FOR WAIVING THE PRE-EM- PLOYMENT CONDITIONS FOR THE PROSPECTIVE EMPLOYEE, INCLUDING A FINDING THAT THERE WERE NO OTHER QUALIFIED CANDIDATES WITH THE DESIRED EXPERI- ENCE FOR THE SPECIFIED POSITION. § 2. This act shall take effect immediately. PART CC Intentionally Omitted PART DD Section 1. This Part enacts into law legislation relating to the thoroughbred breeding and development fund, the Harry M. Zweig memorial fund and prize payment amounts and revenue distributions of lottery game sales. Each component is wholly contained within a Subpart identified as Subparts A through D. 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 corresponding section of the Subpart in which it is found. Section three of this Part sets forth the general effective date of this Part. SUBPART A Intentionally omitted. SUBPART B S. 1509--C 51 A. 2009--C Section 1. Subdivision 1 of section 252 of the racing, pari-mutuel wagering and breeding law, as amended by section 11 of part A of chapter 60 of the laws of 2012, is amended to read as follows: 1. A corporation to be known as the New York state thoroughbred breed- ing and development fund corporation is hereby created. Such corporation shall be a body corporate and politic constituting a public benefit corporation. It shall be administered by a board of directors consisting of the chair of the state gaming commission or his or her designee, the commissioner of agriculture and markets, three members of the state gaming commission OR THEIR DESIGNEES, ALL OF WHOM ARE EXPERIENCED, HAVE KNOWLEDGE, OR HAVE BEEN ACTIVELY ENGAGED IN THE THOROUGHBRED HORSE INDUSTRY IN THE STATE as designated by the governor and six members appointed by the governor, all of whom are experienced or have been actively engaged in the breeding of thoroughbred horses in New York state, one, the president or the executive director of the statewide thoroughbred breeders association representing the majority of breeders of registered thoroughbreds in New York state, one upon the recommenda- tion of the majority leader of the senate, one upon the recommendation of the speaker of the assembly, one upon the recommendation of the minority leader of the senate, and one upon the recommendation of the minority leader of the assembly. Two of the appointed members shall initially serve for a two year term, two of the appointed members shall initially serve for a three year term and two of the appointed members shall initially serve for a four year term. All successors appointed members shall serve for a four year term. All members shall continue in office until their successors have been appointed and qualified. The governor shall designate the chair from among the sitting members who shall serve as such at the pleasure of the governor. § 2. This act shall take effect immediately. SUBPART C Section 1. Section 703 of the racing, pari-mutuel wagering and breed- ing law is amended by adding a new subdivision 3 to read as follows: 3. UPON THE AUTHORIZATION THROUGH A RESOLUTION BY THE COMMITTEE, THE FUND MAY ACQUIRE MONEYS BY THE ACCEPTANCE OF CONDITIONAL GIFTS, GRANTS, DEVISES OR BEQUESTS GIVEN IN FURTHERANCE OF THE MISSION OF THE FUND TO THE EXTENT THAT ANY SUCH GIFT, GRANT, DEVISE, OR BEQUEST IS IN THE FORM OF CASH, SECURITIES, OR OTHER FORM OF PERSONAL PROPERTY THAT IS READILY CONVERTIBLE TO CASH, AND ONLY IF THE CONDITION OF THE GIFT IS THAT IT BE USED FOR THE UNRESTRICTED PURPOSE OF EQUINE RESEARCH. THE FUND MAY NOT ACCEPT A CONDITIONAL GIFT, GRANT, DEVISE, OR BEQUEST IF THE CONDITION WOULD REQUIRE THE FUND TO UNDERTAKE TO ACQUIRE PROPERTY, CONSTRUCT, ALTER, OR RENOVATE ANY REAL PROPERTY, OR ALTER OR SUSPEND THE RESEARCH THAT THE FUND IS ALREADY CONDUCTING OR SUPPORTING. ALL MONEYS ACCEPTED SHALL BE DEPOSITED INTO A SEGREGATED ACCOUNT SUBJECT TO THE REQUIREMENTS AND CONDITIONS OF SUBDIVISION ONE OF THIS SECTION. THE FUND SHALL PROVIDE NOTICE OF THE ACCEPTANCE OF SUCH MONEYS TO THE GAMING COMMIS- SION. § 2. This act shall take effect immediately. SUBPART D Section 1. Paragraph 2 of subdivision a of section 1612 of the tax law, as amended by chapter 174 of the laws of 2013, is amended to read as follows: S. 1509--C 52 A. 2009--C (2) [sixty-five] SIXTY-FOUR AND ONE-FOURTH percent of the total amount for which tickets have been sold for the "Instant Cash" game in which the participant purchases a preprinted ticket on which dollar amounts or symbols are concealed on the face or the back of such ticket, provided however up to five new games may be offered during the fiscal year, [seventy-five] SEVENTY-FOUR AND ONE-FOURTH percent of the total amount for which tickets have been sold for such five games in which the participant purchases a preprinted ticket on which dollar amounts or symbols are concealed on the face or the back of such ticket; or § 2. The opening paragraph of paragraph 1 of subdivision b of section 1612 of the tax law, as amended by chapter 174 of the laws of 2013, is amended to read as follows: Notwithstanding section one hundred twenty-one of the state finance law, on or before the twentieth day of each month, the [division] COMMISSION shall pay into the state treasury, to the credit of the state lottery fund created by section ninety-two-c of the state finance law, NOT LESS THAN FORTY-FIVE PERCENT OF THE TOTAL AMOUNT FOR WHICH TICKETS HAVE BEEN SOLD FOR GAMES DEFINED IN PARAGRAPH FIVE OF SUBDIVISION A OF THIS SECTION DURING THE PRECEDING MONTH, not less than forty-five percent of the total amount for which tickets have be sold for games defined in paragraph four of subdivision a of this section during the preceding month, not less than thirty-five percent of the total amount for which tickets have been sold for games defined in paragraph three of subdivision a of this section during the preceding month, not less than twenty AND THREE-FOURTHS percent of the total amount for which tickets have been sold for games defined in paragraph two of subdivision a of this section during the preceding month, provided however that for games with a prize payout of [seventy-five] SEVENTY-FOUR AND ONE-FOURTH percent of the total amount for which tickets have been sold, the [divi- sion] COMMISSION shall pay not less than ten AND THREE-FOURTHS percent of sales into the state treasury and not less than twenty-five percent of the total amount for which tickets have been sold for games defined in paragraph one of subdivision a of this section during the preceding month; and the balance of the total revenue after payout for prizes for games known as "video lottery gaming," including any joint, multi-juris- diction, and out-of-state video lottery gaming, § 3. Subdivision a of section 1614 of the tax law, as amended by chap- ter 170 of the laws of 1994, is amended to read as follows: a. No prize claim shall be valid if submitted to the [division] COMMISSION following the expiration of a one-year time period from the date of the drawing or from the close of the game in which a prize was won, and the person otherwise entitled to such prize shall forfeit any claim or entitlement to such prize moneys. Unclaimed prize money, plus interest earned thereon, shall be retained in the lottery prize account to be used for payment of special lotto or supplemental lotto prizes offered pursuant to the plan or plans specified in this article, or for promotional purposes to supplement other games on an occasional basis not to exceed sixteen weeks within any twelve month period pursuant to the plan or plans specified in this article. FURTHERMORE, THE COMMISSION SHALL NOT USE FUNDS FROM SUCH LOTTERY PRIZE ACCOUNT FOR SUCH PAYMENTS, AS PROVIDED HEREIN, IN EXCESS OF SIXTY MILLION DOLLARS IN ANY FISCAL YEAR. ALL UNCLAIMED PRIZE MONEY IN EXCESS OF THE SIXTY MILLION DOLLARS SPENDING LIMITATION SHALL, AT THE END OF THE FISCAL YEAR, BE PAID INTO THE STATE TREASURY TO THE CREDIT OF THE STATE LOTTERY FUND CREATED BY SECTION NINETY-TWO-C OF THE STATE FINANCE LAW. S. 1509--C 53 A. 2009--C In the event that the director proposes to change any plan for the use of unclaimed prize funds or in the event the director intends to use funds in a game other than the game from which such unclaimed prize funds were derived, the director of the budget, the chairperson of the senate finance committee, and the chairperson of the assembly ways and means committee shall be notified in writing separately detailing the proposed changes to any plan prior to the implementation of the changes. § 4. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through D of this Part shall be as specifically set forth in the last section of such Subparts. PART EE Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision b of section 1612 of the tax law are REPEALED and two new subparagraphs (ii) and (iii) are 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. THE AMOUNT OF THE VENDOR'S FEE SHALL BE CALCULATED AS FOLLOWS: (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 ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, THE RATE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE AS FOLLOWS: (1) FORTY-THREE AND ONE-HALF PERCENT FOR A VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES BUT LESS THAN FIFTY MILES FROM A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW; (2) FORTY-NINE PERCENT FOR 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; (3) FIFTY-ONE PERCENT FOR VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES BUT LESS THAN FIFTY MILES FROM A NATIVE AMERICAN CLASS III GAMING FACIL- ITY AS DEFINED IN 25 U.S.C. §2703(8); (4) FIFTY-SIX PERCENT FOR A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C §2703(8); (B-1) NOTWITHSTANDING SUBPARAGRAPH (B) OF THIS PARAGRAPH, FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY, FOR A VENDOR TRACK THAT IS S. 1509--C 54 A. 2009--C LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-SEVEN AND ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER; (B-2) NOTWITHSTANDING SUBPARAGRAPH (B) OF THIS PARAGRAPH, FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN AND ENDING ON MARCH THIRTY-FIRST TWO THOUSAND TWENTY, FOR A VENDOR TRACK THAT IS LOCATED WITHIN SARATOGA COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-NINE AND ONE-HALF 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 LOCATED AT AQUEDUCT RACETRACK, AT A RATE OF FIFTY PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAP- TER; (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. (III) LESS ANY ADDITIONAL VENDOR'S FEES. ADDITIONAL VENDOR'S FEES SHALL BE CALCULATED AS FOLLOWS: (A) WHEN A VENDOR TRACK IS LOCATED WITHIN REGION 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, THE ADDITIONAL VENDOR FEE RECEIVED BY THE VENDOR TRACK SHALL BE CALCULATED PURSUANT TO SUBCLAUSE ONE OF THIS CLAUSE; PROVIDED, HOWEVER, SUCH ADDITIONAL VENDOR FEE SHALL NOT EXCEED TEN PERCENT. (1) THE ADDITIONAL VENDOR FEE 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 TAXABLE GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITH- IN THE SAME REGION AS THE VENDOR TRACK FROM THE PERCENTAGE THAT IS NINE- TY PERCENT LESS THAN THE PERCENTAGE OF THE VENDOR TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUNTIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO. (2) THE ADDITIONAL VENDOR FEE PAID PURSUANT TO THIS CLAUSE SHALL COMMENCE WITH THE STATE FISCAL YEAR BEGINNING ON APRIL FIRST, TWO THOU- SAND NINETEEN AND SHALL BE PAID TO A VENDOR TRACK NO LATER THAN NINETY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL VENDOR FEE 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. (B) FOR A VENDOR TRACK THAT IS LOCATED WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, SUCH ADDI- TIONAL VENDOR FEE SHALL BE SIX AND FOUR-TENTHS PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER. THE VENDOR TRACK SHALL FORFEIT THIS ADDITIONAL VENDOR FEE FOR ANY TIME PERIOD THAT THE VENDOR TRACK DOES NOT MAINTAIN AT LEAST NINETY PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN. § 1-a. Notwithstanding section one of this part to the contrary, any additional commission earned on or prior to March thirty-first, two thousand nineteen pursuant to subparagraphs (ii) and (iii) of paragraph S. 1509--C 55 A. 2009--C 1 of subdivision b of section 1612 of the tax law as such provisions existed on March thirty-first, two thousand nineteen, shall be paid to the vendor track no later than ninety days after the close of FY 2019. § 2. Subdivision b of section 1612 of the tax law is amended by adding three new paragraphs 1-a, 1-b, and 1-c to read as follows: 1-A. (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERATORS 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 EIGHTEEN 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 AN AMOUNT EQUAL TO FOUR PERCENT OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER INTO A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS. (II) 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, ENTER- TAINMENT 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 UNRE- IMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. (III) 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. (IV) 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 CAPITAL 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 FACILITY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPITAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT. (V) THE COMPTROLLER OR HIS LEGALLY AUTHORIZED REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGRE- GATED CAPITAL ACCOUNTS. (VI) NOTWITHSTANDING SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH, 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 AND MAY WITHDRAW UP TO SIX MILLION DOLLARS IN CALEN- DAR YEAR TWO THOUSAND NINETEEN FOR THE PURPOSE OF COVERING ONGOING OPER- ATING EXPENSES. (VII) NOTWITHSTANDING SUBPARAGRAPHS (I) THROUGH (VI) OF THIS PARA- GRAPH, A VENDOR TRACK LOCATED WITHIN SARATOGA COUNTY MAY WITHDRAW UP TO S. 1509--C 56 A. 2009--C THREE MILLION DOLLARS IN CALENDAR YEAR TWO THOUSAND NINETEEN FOR THE PURPOSE OF COVERING ONGOING OPERATING EXPENSES. (VIII) ANY BALANCE REMAINING IN THE CAPITAL AWARD ACCOUNT OF A VENDOR TRACK OR OPERATOR OR ANY OTHER VIDEO LOTTERY GAMING FACILITY AS OF MARCH THIRTY-FIRST, TWO THOUSAND NINETEEN SHALL BE TRANSFERRED FOR DEPOSIT INTO A SEGREGATED ACCOUNT ESTABLISHED BY THIS SUBPARAGRAPH. 1-B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION I 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. 1-C. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERA- TOR 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. § 3. This act shall take effect immediately; provided, however, clause (B) of subparagraph (iii) of paragraph 1 of subdivision b of section 1612 of the tax law as added by section one of this act shall take effect June 30, 2019 and shall expire and be deemed repealed March 31, 2023. PART FF Section 1. Subdivision 25 of section 1301 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: 25. "Gross gaming revenue". The total of all sums actually received by a gaming facility licensee from gaming operations less the total of all sums paid out as winnings to patrons; provided, however, that the total of all sums paid out as winnings to patrons shall not include the cash equivalent value of any merchandise or thing of value included in a jackpot or payout[; provided further, that the issuance to or wagering by patrons of a gaming facility of any promotional gaming credit shall not be taxable for the purposes of determining gross revenue]. § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 2 to read as follows: 2. PERMISSIBLE DEDUCTIONS. (A) A GAMING FACILITY MAY DEDUCT FROM GROSS GAMING REVENUE THE AMOUNT OF APPROVED PROMOTIONAL GAMING CREDITS ISSUED TO AND WAGERED BY PATRONS OF SUCH GAMING FACILITY. THE AMOUNT OF APPROVED PROMOTIONAL CREDITS SHALL BE CALCULATED AS FOLLOWS: (1) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND EIGHTEEN AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, AN AGGREGATE MAXIMUM AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVENUE AMOUNT DURING THE SPECIFIED PERIOD; (2) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY-ONE AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-THREE, A MAXIMUM AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVEN- UE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD; AND S. 1509--C 57 A. 2009--C (3) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY- THREE AND THEREAFTER, A MAXIMUM AMOUNT EQUAL TO FIFTEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVENUE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD. (B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, "BASE TAXABLE GROSS GAMING REVENUE AMOUNT" MEANS THAT PORTION OF GROSS GAMING REVENUE NOT ATTRIBUTABLE TO DEDUCTIBLE PROMOTIONAL CREDIT. (C) ANY TAX DUE ON PROMOTIONAL CREDITS DEDUCTED DURING THE FISCAL YEAR IN EXCESS OF THE ALLOWABLE DEDUCTION SHALL BE PAID WITHIN THIRTY DAYS FROM THE END OF THE FISCAL YEAR. (D) ONLY PROMOTIONAL CREDITS THAT ARE ISSUED PURSUANT TO A WRITTEN PLAN APPROVED BY THE COMMISSION AS DESIGNED TO INCREASE REVENUE AT THE FACILITY MAY BE ELIGIBLE FOR SUCH DEDUCTION. THE COMMISSION, IN CONJUNC- TION WITH THE DIRECTOR OF THE BUDGET, MAY SUSPEND APPROVAL OF ANY PLAN WHENEVER THEY JOINTLY DETERMINE THAT THE USE OF THE PROMOTIONAL CREDITS UNDER SUCH PLAN IS NOT EFFECTIVE IN INCREASING THE AMOUNT OF REVENUE EARNED. § 3. This act shall take effect immediately. PART GG Section 1. Subdivision 12 of section 502 of the racing, pari-mutuel wagering and breeding law is amended to read as follows: 12. A. The board of directors shall hold an annual meeting AND MEET NOT LESS THAN QUARTERLY. B. EACH BOARD MEMBER SHALL RECEIVE, NOT LESS THAN SEVEN DAYS IN ADVANCE OF A MEETING, DOCUMENTATION NECESSARY TO ENSURE KNOWLEDGEABLE AND ENGAGED PARTICIPATION. SUCH DOCUMENTATION SHALL INCLUDE MATERIAL RELEVANT TO EACH AGENDA ITEM INCLUDING BACKGROUND INFORMATION OF DISCUSSION ITEMS, RESOLUTIONS TO BE CONSIDERED AND ASSOCIATED DOCUMENTS, A MONTHLY FINANCIAL STATEMENT WHICH SHALL INCLUDE AN UPDATED CASH FLOW STATEMENT AND AGED PAYABLE LISTING OF INDUSTRY PAYABLES, FINANCIAL STATEMENTS, MANAGEMENT REPORTS, COMMITTEE REPORTS AND COMPLIANCE ITEMS. C. STAFF OF THE CORPORATION SHALL ANNUALLY SUBMIT TO THE BOARD FOR APPROVAL A FINANCIAL PLAN ACCOMPANIED BY EXPENDITURE, REVENUE AND CASH FLOW PROJECTIONS. THE PLAN SHALL CONTAIN PROJECTION OF REVENUES AND EXPENDITURES BASED ON REASONABLE AND APPROPRIATE ASSUMPTIONS AND METHODS OF ESTIMATIONS, AND SHALL PROVIDE THAT OPERATIONS WILL BE CONDUCTED WITHIN THE CASH RESOURCES AVAILABLE. THE FINANCIAL PLAN SHALL ALSO INCLUDE INFORMATION REGARDING PROJECTED EMPLOYMENT LEVELS, COLLECTIVE BARGAINING AGREEMENTS AND OTHER ACTIONS RELATING TO EMPLOYEE COSTS, CAPITAL CONSTRUCTION AND SUCH OTHER MATTERS AS THE BOARD MAY DIRECT. D. STAFF OF THE CORPORATION SHALL PREPARE AND SUBMIT TO THE BOARD ON A QUARTERLY BASIS A REPORT OF SUMMARIZED BUDGET DATA DEPICTING OVERALL TRENDS, BY MAJOR CATEGORY WITHIN FUNDS, OF ACTUAL REVENUES AND BUDGET EXPENDITURES FOR THE ENTIRE BUDGET RATHER THAN INDIVIDUAL LINE ITEMS, AS WELL AS UPDATED QUARTERLY CASH FLOW PROJECTIONS OF RECEIPTS AND DISBURSEMENTS. SUCH REPORTS SHALL COMPARE REVENUE ESTIMATES AND APPRO- PRIATIONS AS SET FORTH IN SUCH BUDGET AND IN THE QUARTERLY REVENUE AND EXPENDITURE PROJECTIONS SUBMITTED THEREWITH, WITH THE ACTUAL REVENUES AND EXPENDITURES MADE TO DATE. SUCH REPORTS SHALL ALSO COMPARE ACTUAL RECEIPTS AND DISBURSEMENTS WITH THE ESTIMATES CONTAINED IN THE CASH FLOW PROJECTIONS, TOGETHER WITH VARIANCES AND THEIR EXPLANATION. ALL QUARTER- LY REPORTS SHALL BE ACCOMPANIED BY RECOMMENDATIONS FROM THE PRESIDENT SETTING FORTH ANY REMEDIAL ACTION NECESSARY TO RESOLVE ANY UNFAVORABLE BUDGET VARIANCE INCLUDING THE OVERESTIMATION OF REVENUES AND THE UNDER- S. 1509--C 58 A. 2009--C ESTIMATION OF APPROPRIATIONS. THESE REPORTS SHALL BE COMPLETED WITHIN THIRTY DAYS AFTER THE END OF EACH QUARTER AND SHALL BE SUBMITTED TO THE BOARD BY THE CORPORATION COMPTROLLER. E. REVENUE ESTIMATES AND THE FINANCIAL PLAN SHALL BE REGULARLY REEXAM- INED BY THE BOARD AND STAFF AND SHALL PROVIDE A MODIFIED FINANCIAL PLAN IN SUCH DETAIL AND WITHIN SUCH TIME PERIODS AS THE BOARD MAY REQUIRE. IN THE EVENT OF REDUCTIONS IN SUCH REVENUE ESTIMATES, THE BOARD SHALL CONSIDER AND APPROVE SUCH ADJUSTMENTS IN REVENUE ESTIMATES AND REDUCTIONS IN TOTAL EXPENDITURES AS MAY BE NECESSARY TO CONFORM TO SUCH REVISED REVENUE ESTIMATES OR AGGREGATE EXPENDITURE LIMITATIONS. § 2. Subdivision 2-a of section 1009 of the racing, pari-mutuel wager- ing and breeding law, is amended by adding a new paragraph (c) to read as follows: (C) THE BOARD MAY AUTHORIZE A SPECIAL DEMONSTRATION PROJECT TO BE LOCATED IN ANY FACILITY LICENSED PURSUANT TO ARTICLE THIRTEEN OF THIS CHAPTER IN SCHENECTADY COUNTY. NOTWITHSTANDING THE PROVISIONS OF PARA- GRAPH A OF SUBDIVISION FIVE OF THIS SECTION, AN ADMISSION FEE SHALL NOT BE REQUIRED FOR A DEMONSTRATION PROJECT AUTHORIZED IN THIS PARAGRAPH. PROVIDED HOWEVER, ON ANY DAY WHEN A REGIONAL HARNESS TRACK CONDUCTS A LIVE RACE MEETING, A DEMONSTRATION FACILITY WITHIN THAT REGION SHALL PREDOMINANTLY DISPLAY THE LIVE VIDEO OF SUCH REGIONAL HARNESS TRACK. § 3. This act shall take effect immediately. PART HH 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 GG of chapter 59 of the laws of 2018, 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 S. 1509--C 59 A. 2009--C 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 [nineteen] TWENTY; 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 [nineteen] TWENTY; 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY, 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY 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 [nineteen] TWENTY. On any day on which a franchised corpo- ration has not scheduled a racing program but a thoroughbred racing S. 1509--C 60 A. 2009--C 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] 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 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY. This section shall supersede 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 GG of chapter 59 of the laws of 2018, 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 [nineteen] TWENTY. 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 GG of chapter 59 of the laws of 2018, 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 [eighteen] NINETEEN, 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. S. 1509--C 61 A. 2009--C § 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 GG of chapter 59 of the laws of 2018, 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, [2019] 2020; 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 GG of chapter 59 of the laws of 2018, 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, [2019] 2020; 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 GG of chapter 59 of the laws of 2018, 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 S. 1509--C 62 A. 2009--C 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 thou- sand one through December thirty-first, two thousand [nineteen] TWENTY, 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 [nineteen] TWENTY, such payment shall be seven-tenths of one per centum of such pools. § 10. This act shall take effect immediately. PART II Intentionally Omitted PART JJ Section 1. Section 2 of part EE of chapter 59 of the laws of 2018, amending the racing, pari-mutuel wagering and breeding law, relating to adjusting the franchise payment establishing an advisory committee to review the structure, operations and funding of equine drug testing and research, is amended to read as follows: § 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 S. 1509--C 63 A. 2009--C 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] 2019 regarding the future of such research, testing and funding. Members of the board shall not be considered policymakers. § 2. Subdivision 1 of section 902 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 15 of the laws of 2010, is amended to read as follows: 1. In order to assure the public's confidence and continue the high degree of integrity in racing at the pari-mutuel betting tracks, equine drug testing at race meetings shall be conducted by a state college OR AT A LAND GRANT UNIVERSITY within this state [with an approved equine science program]. The [state racing and wagering board] GAMING COMMIS- SION shall promulgate any rules and regulations necessary to implement the provisions of this section, including administrative penalties of loss of purse money, fines, or denial, suspension[,] or revocation of a license for racing drugged horses. § 3. This act shall take effect immediately. PART KK Intentionally Omitted PART LL 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 EIGHTEEN-TWO THOUSAND NINETEEN 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 NINETEEN-TWO THOUSAND TWENTY SCHOOL YEAR: (A) FOR PURPOSES OF THE EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWEN- TY-FIVE OF THIS CHAPTER, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT EXCEED THE TAX SAVINGS FOR THE PRIOR YEAR, AND (B) FOR PURPOSES OF THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE TAX SAVINGS APPLICABLE TO ANY PORTION 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. The tax savings attributable to the basic and enhanced exemptions shall be calculated separately. It shall be the responsibil- S. 1509--C 64 A. 2009--C ity of the commissioner to calculate tax savings limitations for purposes of this subdivision. § 2. Subparagraph (G) 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: (G) "STAR tax savings" means the tax savings attributable to the STAR exemption within a portion of a school district, as determined by the commissioner pursuant to subdivision two of section thirteen hundred six-a of the real property tax law FOR PURPOSES OF THE CREDIT AUTHORIZED BY THIS SUBSECTION. § 3. This act shall take effect immediately. PART MM Section 1. Section 1405-B of the tax law is amended by adding a new subdivision (c) to read as follows: (C) THE INFORMATION CONTAINED WITHIN INFORMATION RETURNS FILED UNDER SUBDIVISION (B) OF THIS SECTION MAY BE PROVIDED BY THE COMMISSIONER TO LOCAL ASSESSORS FOR USE IN REAL PROPERTY TAX ADMINISTRATION, AND SUCH INFORMATION SHALL NOT BE SUBJECT TO THE SECRECY PROVISIONS SET FORTH IN SECTION FOURTEEN HUNDRED EIGHTEEN OF THIS CHAPTER, PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL NOT DISCLOSE SOCIAL SECURITY NUMBERS OR EMPLOYER IDENTIFICATION NUMBERS. § 2. This act shall take effect January 1, 2020. PART NN Section 1. Paragraph 3 of subsection (e-1) of section 606 of the tax law, as added by section 2 of part K of chapter 59 of the laws of 2014, is amended as follows: (3) Determination of credit. For taxable years after two thousand thirteen [and prior to two thousand sixteen], the amount of the credit allowable under this subsection shall be determined as follows: If household gross income Excess real property The credit amount is for the taxable year is: taxes are the excess the following of real property tax percentage of excess equivalent or the property taxes: excess of qualifying real property taxes over the following percentage of household gross income: Less than $100,000 4 4.5 $100,000 to less than 5 3.0 $150,000 $150,000 to less than 6 1.5 $200,000 Notwithstanding the foregoing provisions, the maximum credit deter- mined under this subparagraph may not exceed five hundred dollars. § 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2016; provided, however, that the amendments to subsection (e-1) of section 606 of the tax law made by section one of this act shall not affect the repeal of such subsection and shall be deemed to be repealed therewith. S. 1509--C 65 A. 2009--C PART OO 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. The commissioner, by regulation, shall provide that such registra- tion 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 a copy of all current manufactured home park rules and regulations. THE REPORTING OF SUCH INFORMATION TO THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBPARAGRAPH (B) OF PARAGRAPH SIX OF SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW SHALL BE DEEMED TO SATISFY THE REQUIREMENTS OF THIS PARAGRAPH. THAT THE COMMISSIONER MAY NOT BE THE PRIMARY RECIPI- ENT OF SUCH REGISTRATION STATEMENT SHALL NOT BE CONSTRUED TO LIMIT, ALTER OR DIMINISH THE ABILITY OR RESPONSIBILITY OF THE DIVISION OF HOUS- ING AND COMMUNITY RENEWAL IN REGARDS TO ENFORCEMENT OF THIS SECTION OR ANY OTHER APPLICABLE LAWS. THE COMMISSIONER MAY REQUEST ADDITIONAL OR CORRECTED INFORMATION TO BE FILED BY EACH MANUFACTURED HOME PARK OWNER OR OPERATOR AS HE OR SHE DEEMS NECESSARY TO CARRY OUT PROPER OVERSIGHT OF SUCH MANUFACTURED HOME PARKS. THE COMMISSIONER SHALL ANNUALLY MAKE PUBLICLY AVAILABLE ON ITS WEBSITE A REPORT OF THE DATA COLLECTED PURSU- ANT TO THIS SUBDIVISION OR SUBPARAGRAPH (B) OF PARAGRAPH SIX OF SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, NOT INCLUD- ING ANY PERSONALLY IDENTIFIABLE INFORMATION. 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 S. 1509--C 66 A. 2009--C civil practice law and rules. The provisions of this subdivision shall not impair the rights granted under subdivision u of this section. § 2. Subparagraph (B) of paragraph 6 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) (I) In the case of property consisting of a mobile home that is described in paragraph (1) of subdivision two of section four hundred twenty-five of the real property tax law, the amount of the credit allowable with respect to such mobile home shall be equal to the basic STAR tax savings for the school district portion, or the enhanced STAR tax savings for the school district portion, whichever is applicable, that would be applied to a separately assessed parcel in the school district portion with a taxable assessed value equal to twenty thousand dollars multiplied by the latest state equalization rate or special equalization rate for the assessing unit in which the mobile home is located. Provided, however, that if the commissioner is in possession of information, including but not limited to assessment records, that demonstrates to the commissioner's satisfaction that the taxpayer's mobile home is worth more than twenty thousand dollars, or if the taxpayer provides the commissioner with such information, the taxpayer's credit shall be increased accordingly, but in no case shall the credit exceed the basic STAR tax savings or enhanced STAR tax savings, whichev- er is applicable, for the school district portion. (II) THE COMMISSIONER MAY IMPLEMENT AN ELECTRONIC SYSTEM FOR THE REPORTING OF INFORMATION BY OWNERS AND OPERATORS OF MANUFACTURED HOME PARKS, AS DEFINED BY SECTION TWO HUNDRED THIRTY-THREE OF THE REAL PROP- ERTY LAW. UPON THE IMPLEMENTATION OF SUCH A SYSTEM, EACH SUCH OWNER AND OPERATOR SHALL FILE ELECTRONIC STATEMENTS WITH THE COMMISSIONER ACCORD- ING TO A SCHEDULE TO BE DETERMINED BY THE COMMISSIONER. SUCH STATEMENT SHALL REQUIRE REPORTING OF NAMES OF ALL PERSONS OWNING AN INTEREST IN THE PARK, THE SERVICES PROVIDED BY THE PARK OWNER TO THE TENANTS, THE NAME OF THE AGENT DESIGNATED PURSUANT TO SUBDIVISION L OF SECTION TWO HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW, THE NAMES AND ADDRESSES OF ALL TENANTS OF THE PARK, WHETHER THE TENANT LEASES OR OWNS THE HOME, THE RENT SET FOR EACH LOT IN THE PARK, AND SUCH ADDITIONAL INFORMATION AS THE COMMISSIONER MAY DEEM NECESSARY FOR THE PROPER ADMINISTRATION OF THE STAR EXEMPTION ESTABLISHED PURSUANT TO SECTION FOUR HUNDRED TWENTY- FIVE OF THE REAL PROPERTY TAX LAW AND THE STAR CREDIT AND ANY OTHER PROPERTY TAX-BASED CREDIT ESTABLISHED PURSUANT TO THIS SECTION. IN THE CASE OF THE FIRST REGISTRATION STATEMENT FILED IN A CALENDAR YEAR, SUCH STATEMENT SHALL ALSO INCLUDE A COPY OF ALL CURRENT MANUFACTURED HOME PARK RULES AND REGULATIONS. IN THE CASE THAT THE MANUFACTURED HOME PARK RULES AND REGULATIONS ARE MODIFIED AFTER THE FILING OF THE FIRST REGIS- TRATION STATEMENT IN A CALENDAR YEAR, THE NEXT SUBSEQUENT REGISTRATION STATEMENT SHALL ALSO INCLUDE A COPY OF SUCH RULES AND REGULATIONS. THE COMMISSIONER SHALL PROVIDE THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL WITH THE INFORMATION CONTAINED IN EACH REPORT NO LATER THAN THIRTY DAYS AFTER THE RECEIPT THEREOF. § 3. This act shall take effect immediately. PART PP Section 1. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by section 2 of part B of chapter 59 of the laws of 2018, is amended to read as follows: S. 1509--C 67 A. 2009--C (iv) (A) Effective with applications for the enhanced exemption on final assessment rolls to be completed in two thousand nineteen, the application form shall indicate that all owners of the property and any owners' spouses residing on the premises must have their income eligi- bility verified annually by the department and must furnish their taxpayer identification numbers in order to facilitate matching with records of the department. The income eligibility of such persons shall be verified annually by the department, and the assessor shall not request income documentation from them. All applicants 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) EFFECTIVE WITH FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOU- SAND TWENTY, THE COMMISSIONER SHALL ALSO ANNUALLY VERIFY THE ELIGIBILITY OF SUCH PERSONS FOR THE ENHANCED EXEMPTION ON THE BASIS OF AGE AND RESI- DENCY AS WELL AS INCOME. (C) Where the commissioner finds that the enhanced exemption should be replaced with a basic exemption because [the income limitation applica- ble to the enhanced exemption has been exceeded] THE PROPERTY IS ONLY ELIGIBLE FOR A BASIC EXEMPTION, he or she shall provide the property owners with notice and an opportunity to submit to the commissioner 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] THE PROPERTY IS NOT ELIGIBLE FOR EITHER EXEMPTION, he or she shall provide the property owners with notice and an opportunity to submit to the commissioner 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 commissioner 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)] (D) 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 department's final determination, the taxpayer may appeal that determi- nation to the state board of real property tax services in a form and manner to be prescribed by the commissioner. Such appeal shall be filed within forty-five days from the issuance of the department's final determination. If dissatisfied with the state board's determination, the taxpayer may seek judicial review thereof pursuant to article seventy- eight of the civil practice law and rules. The taxpayer shall otherwise have no right to challenge such final determination in a court action, administrative proceeding or any other form of legal recourse against S. 1509--C 68 A. 2009--C 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. § 2. Paragraph (c) of subdivision 13 of section 425 of the real prop- erty tax law, as amended by section 1 of part J of chapter 57 of the laws of 2013, is amended, and a new paragraph (f) is added to read as follows: (c) Additional consequences. A penalty tax may be imposed pursuant to this subdivision whether or not the improper exemption has been revoked in the manner provided by this section. In addition, a person or persons who are found to have made a material misstatement shall be disqualified from further exemption pursuant to this section, AND IF SUCH MISSTATE- MENT APPEARS ON AN APPLICATION FILED ON OR AFTER APRIL FIRST, TWO THOU- SAND NINETEEN, FROM THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, for a period of [five years if such misstatement appears on an application filed prior to October first, two thousand thirteen, and] six years [if such misstatement appears on an application filed thereafter]. In addition, such person or persons may be subject to prosecution pursuant to the penal law. (F) ASSESSOR NOTIFICATION. THE ASSESSOR SHALL INFORM THE COMMISSIONER WHENEVER A PERSON OR PERSONS IS FOUND TO HAVE MADE A MATERIAL MISSTATE- MENT ON AN APPLICATION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION. § 3. Paragraph (13) of subsection (eee) of section 606 of the tax law is amended by adding a new subparagraph (E) to read as follows: (E) ON OR AFTER APRIL FIRST, TWO THOUSAND NINETEEN, A TAXPAYER WHO IS FOUND TO HAVE MADE A MATERIAL MISSTATEMENT ON AN APPLICATION FOR THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE DISQUALIFIED FROM RECEIVING SUCH CREDIT FOR SIX YEARS. AS USED HEREIN, THE TERM "MATERIAL MISSTATE- MENT" SHALL HAVE THE SAME MEANING AS SET FORTH IN PARAGRAPH (A) OF SUBDIVISION THIRTEEN OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. § 4. Subparagraph (E) of paragraph (10) of subsection (eee) of section 606 of the tax law, as amended by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (E) If the commissioner determines after issuing an advance payment that it was issued in an excessive amount or to an ineligible or incor- rect party, the commissioner shall be empowered to utilize any of the procedures for collection, levy and lien of personal income tax set forth in this article, any other relevant procedures referenced within the provisions of this article, and any other law as may be applicable, to recoup the improperly issued amount; PROVIDED THAT IN THE EVENT SUCH PARTY WAS DETERMINED TO BE INELIGIBLE ON THE BASIS THAT HIS OR HER PRIMARY RESIDENCE RECEIVED THE STAR EXEMPTION IN THE ASSOCIATED FISCAL YEAR, THE IMPROPERLY ISSUED CREDIT AMOUNT SHALL BE DEEMED A CLERICAL ERROR AND SHALL BE PAID UPON NOTICE AND DEMAND WITHOUT THE ISSUANCE OF A NOTICE OF DEFICIENCY AND SHALL BE ASSESSED, COLLECTED AND PAID IN THE SAME MANNER AS TAXES. § 5. This act shall take effect immediately. PART QQ Section 1. Section 467 of the real property tax law is amended by adding a new subdivision 11 to read as follows: 11. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, UPON THE REQUEST OF AN ASSESSOR, THE COMMISSIONER MAY DISCLOSE TO THE ASSESSOR THE NAMES AND ADDRESSES OF THE OWNERS OF PROPERTY IN THAT ASSESSOR'S S. 1509--C 69 A. 2009--C ASSESSING UNIT WHO ARE RECEIVING THE ENHANCED STAR EXEMPTION OR ENHANCED STAR CREDIT AND WHOSE FEDERAL ADJUSTED GROSS INCOME IS LESS THAN THE UPPERMOST AMOUNT SPECIFIED BY SUBPARAGRAPH THREE OF PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION (REPRESENTED THEREIN AS M + $8,400). SUCH AMOUNT SHALL BE DETERMINED WITHOUT REGARD TO ANY LOCAL OPTIONS THAT THE MUNICIPAL CORPORATION MAY OR MAY NOT HAVE EXERCISED IN RELATION TO INCREASING OR DECREASING THE MAXIMUM INCOME ELIGIBILITY LEVEL AUTHORIZED BY THIS SECTION, PROVIDED THAT THE AMOUNT SO DETERMINED FOR A CITY WITH A POPULATION OF ONE MILLION OR MORE SHALL TAKE INTO ACCOUNT THE DISTINCT MAXIMUM INCOME ELIGIBILITY LEVEL ESTABLISHED FOR SUCH CITY BY PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION. IN NO CASE SHALL THE COMMIS- SIONER DISCLOSE TO AN ASSESSOR THE AMOUNT OF AN OWNER'S FEDERAL ADJUSTED GROSS INCOME. (B) THE ASSESSOR MAY USE THE INFORMATION CONTAINED IN SUCH A REPORT TO CONTACT THOSE OWNERS WHO ARE NOT ALREADY RECEIVING THE EXEMPTION AUTHOR- IZED BY THIS SECTION AND TO SUGGEST THAT THEY CONSIDER APPLYING FOR IT. PROVIDED, HOWEVER, THAT NOTHING CONTAINED HEREIN SHALL BE CONSTRUED AS ENABLING ANY PERSON OR PERSONS TO QUALIFY FOR THE EXEMPTION AUTHORIZED BY THIS SECTION ON THE BASIS OF THEIR FEDERAL ADJUSTED GROSS INCOME, RATHER THAN ON THE BASIS OF THEIR INCOME AS DETERMINED PURSUANT TO THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION. (C) INFORMATION DISCLOSED TO AN ASSESSOR PURSUANT TO THIS SUBDIVISION SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. IT SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW. § 2. Section 1532 of the real property tax law is amended by adding a new subdivision 5 to read as follows: 5. INFORMATION REGARDING DECEDENTS PROVIDED BY THE COMMISSIONER TO A COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES PURSUANT TO SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-ONE OF THE TAX LAW SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. THE CONTENTS OF THE REPORT MAY BE SHARED WITH THE ASSESSOR AND TAX COLLECTING OFFICER OF THE MUNIC- IPAL CORPORATION IN WHICH THE DECEDENT'S FORMER RESIDENCE IS LOCATED, AND WITH THE ENFORCING OFFICER IF SUCH RESIDENCE IS SUBJECT TO DELIN- QUENT TAXES. THE INFORMATION SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW. § 3. Subsection (c) of section 651 of the tax law, as amended by chap- ter 783 of the laws of 1962, is amended to read as follows: (c) Decedents. The return for any deceased individual shall be made and filed by his executor, administrator, or other person charged with his property. If a final return of a decedent is for a fractional part of a year, the due date of such return shall be the fifteenth day of the fourth month following the close of the twelve-month period which began with the first day of such fractional part of the year. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A RETURN HAS BEEN FILED FOR A DECEDENT, THE COMMISSIONER MAY DISCLOSE THE DECEDENT'S NAME, ADDRESS, AND THE DATE OF DEATH TO THE DIRECTOR OF REAL PROPERTY TAX SERVICES OF THE COUNTY IN WHICH THE ADDRESS REPORTED ON SUCH RETURN IS LOCATED. § 4. This act shall take effect immediately. PART RR Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real property tax law, as added by section 1 of part FF of chapter 57 of the laws of 2010, is amended to read as follows: S. 1509--C 70 A. 2009--C (b-1) Income. For final assessment rolls to be used for the levy of taxes for the two thousand eleven-two thousand twelve THROUGH TWO THOU- SAND EIGHTEEN-TWO THOUSAND NINETEEN school [year and thereafter] YEARS, the parcel's affiliated income may be no greater than five hundred thou- sand dollars, as determined by the commissioner [of taxation and finance] pursuant to SUBDIVISION FOURTEEN OF THIS SECTION OR section one hundred seventy-one-u of the tax law, in order to be eligible for the basic exemption authorized by this section. BEGINNING WITH THE TWO THOU- SAND NINETEEN-TWO THOUSAND TWENTY SCHOOL YEAR, FOR PURPOSES OF THE EXEMPTION AUTHORIZED BY THIS SECTION, THE PARCEL'S AFFILIATED INCOME MAY BE NO GREATER THAN TWO HUNDRED FIFTY THOUSAND DOLLARS, AS SO DETERMINED. 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' spouses resid- ing primarily thereon. For exemptions on final assessment rolls to be used for the levy of taxes for the two thousand eleven-two thousand 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. § 2. Subparagraph (A) of paragraph 3 of subsection (eee) of section 606 of the tax law, as added by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: (A) Beginning with taxable years after two thousand fifteen, a basic STAR credit shall be available to a qualified taxpayer if the affiliated income of the parcel that serves as the taxpayer's primary residence is less than or equal to five hundred thousand dollars. THE INCOME LIMIT ESTABLISHED FOR THE BASIC STAR EXEMPTION BY PARAGRAPH (B-1) OF SUBDIVI- SION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW SHALL NOT BE TAKEN INTO ACCOUNT WHEN DETERMINING ELIGIBILITY FOR THE BASIC STAR CREDIT. § 3. This act shall take effect immediately. PART SS Section 1. Subdivision 6 of section 1306-a of the real property tax law, as amended by section 3 of part TT of chapter 59 of the laws of 2017, is amended to read as follows: 6. When the commissioner determines, at least twenty days prior to the levy of school district taxes, that an advance credit of the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law will be provided to the owners of a parcel in that school district, he or she shall so notify the assessor, the county director of real property tax services, and the authorities of the school district, who shall cause a statement to be placed on the tax bill for the parcel in substantially the following form: "An estimated STAR check HAS BEEN OR will be mailed to you [upon issuance] by the NYS Tax Department. Any overpayment or underpayment can be reconciled on your next tax return or STAR credit check." Notwithstanding any provision of law to the contrary, in the event that the parcel in question had been granted a STAR exemption on the assessment roll upon which school district taxes are to be levied, such exemption shall be deemed null and void, shall be removed from the assessment roll, and shall be disregarded when the parcel's tax liabil- ity is determined. The assessor or other local official or officials S. 1509--C 71 A. 2009--C having custody and control of the data file used to generate school district tax rolls and tax bills shall be authorized and directed to change such file as necessary to enable the school district authorities to discharge the duties imposed upon them by this subdivision. § 2. This act shall take effect immediately. PART TT Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real property tax law, as added by section 1 of part D of chapter 60 of the laws of 2016, is amended to read as follows: (a-2) Notwithstanding any provision of law to the contrary, where [a renewal] AN application for the "enhanced" STAR exemption authorized by subdivision four of this section has not been filed on or before the taxable status date, and the owner believes that good cause existed for the failure to file the [renewal] application by that date, the owner may, no later than the last day for paying school taxes without incur- ring interest or penalty, submit a written request to the commissioner asking him or her to extend the filing deadline and grant the exemption. Such request shall contain an explanation of why the deadline was missed, and shall be accompanied by [a renewal] AN application, reflect- ing the facts and circumstances as they existed on the taxable status date. After consulting with the assessor, the commissioner may extend the filing deadline and grant the exemption if the commissioner is satisfied that (i) good cause existed for the failure to file the [renewal] application by the taxable status date, and that (ii) the applicant is otherwise entitled to the exemption. The commissioner shall mail notice of his or her determination to such owner and the assessor. If the determination states that the commissioner has granted the exemption, the assessor shall thereupon be authorized and directed to correct the assessment roll accordingly, or, if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. If the correction is not made before school taxes are levied, the [failure to take the exemption into account in the computation of the tax shall be deemed a "clerical error" for purposes of title three of article five of this chapter, and shall be corrected accordingly] SCHOOL DISTRICT AUTHORITIES SHALL BE AUTHORIZED AND DIRECTED TO TAKE ACCOUNT OF THE FACT THAT THE COMMISSIONER HAS GRANTED THE EXEMPTION BY CORRECTING THE APPLICANT'S TAX BILL AND/OR ISSUING A REFUND ACCORDINGLY. § 2. Paragraph (d) of subdivision 2 of section 496 of the real proper- ty tax law, as added by section 3 of part A of chapter 60 of the laws of 2016, is amended to read as follows: (d) If the applicant is renouncing a STAR exemption in order to quali- fy for the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law, and no other exemptions are being renounced on the same application, OR IF THE APPLICANT IS RENOUNC- ING A STAR EXEMPTION BEFORE SCHOOL TAXES HAVE BEEN LEVIED ON THE ASSESS- MENT ROLL UPON WHICH THAT EXEMPTION APPEARS, no processing fee shall be applicable. § 3. Paragraph (a) of subdivision 2 of section 496 of the real proper- ty tax law, as amended by section 3 of part A of chapter 60 of the laws of 2016, is amended to read as follows: (a) For each assessment roll on which the renounced exemption appears, the assessed value that was exempted shall be multiplied by the tax rate or rates that were applied to that assessment roll, OR IN THE CASE OF A S. 1509--C 72 A. 2009--C RENOUNCED STAR EXEMPTION, THE TAX SAVINGS CALCULATED PURSUANT TO SUBDI- VISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER. Interest shall then be added to each such product at the rate prescribed by section nine hundred twenty-four-a of this chapter or such other law as may be applicable for each month or portion thereon since the levy of taxes upon such assessment roll. § 4. Paragraph 5 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: (5) Disqualification. A taxpayer shall not qualify for the credit authorized by this subsection if the parcel that serves as the taxpay- er's primary residence received the STAR exemption on the assessment roll upon which school district taxes for the associated fiscal year [where] WERE levied. Provided, however, that the taxpayer may remove this disqualification by renouncing the exemption [and making any required payments] by December thirty-first of the taxable year, as provided by subdivision sixteen of section four hundred twenty-five of the real property tax law, AND MAKING ANY REQUIRED PAYMENTS WITHIN THE TIME FRAME PRESCRIBED BY SECTION FOUR HUNDRED NINETY-SIX OF THE REAL PROPERTY TAX LAW. § 5. This act shall take effect immediately. PART UU Section 1. The tax law is amended by adding a new article 28-C to read as follows: ARTICLE 28-C SUPPLEMENTAL TAX ON VAPOR PRODUCTS SECTION 1180. DEFINITIONS. 1181. IMPOSITION OF TAX. 1182. IMPOSITION OF COMPENSATING USE TAX. 1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL. 1184. ADMINISTRATIVE PROVISIONS. 1185. CRIMINAL PENALTIES. 1186. DEPOSIT AND DISPOSITION OF REVENUE. § 1180. DEFINITIONS. FOR THE PURPOSES OF THE TAXES IMPOSED BY THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN: (A) "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED IN TO 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 MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF ARTI- CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW. (B) "VAPOR PRODUCTS DEALER" MEANS A PERSON LICENSED BY THE COMMISSION- ER TO SELL VAPOR PRODUCTS IN THIS STATE. § 1181. IMPOSITION OF TAX. IN ADDITION TO ANY OTHER TAX IMPOSED BY THIS CHAPTER OR OTHER LAW, THERE IS HEREBY IMPOSED A TAX OF TWENTY PERCENT ON RECEIPTS FROM THE RETAIL SALE OF VAPOR PRODUCTS SOLD IN THIS STATE. THE TAX IS IMPOSED ON THE PURCHASER AND COLLECTED BY THE VAPOR PRODUCTS DEALER AS DEFINED IN SUBDIVISION (B) OF SECTION ELEVEN HUNDRED EIGHTY OF THIS ARTICLE, IN TRUST FOR AND ON ACCOUNT OF THE STATE. S. 1509--C 73 A. 2009--C § 1182. IMPOSITION OF COMPENSATING USE TAX. (A) EXCEPT TO THE EXTENT THAT VAPOR PRODUCTS HAVE ALREADY BEEN OR WILL BE SUBJECT TO THE TAX IMPOSED BY SECTION ELEVEN HUNDRED EIGHTY-ONE OF THIS ARTICLE, OR ARE OTHERWISE EXEMPT UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED A USE TAX ON EVERY USE WITHIN THE STATE OF VAPOR PRODUCTS: (1) PURCHASED AT RETAIL; AND (2) MANUFACTURED OR PROCESSED BY THE USER IF ITEMS OF THE SAME KIND ARE SOLD BY HIM OR HER IN THE REGULAR COURSE OF HIS OR HER BUSINESS. (B) FOR PURPOSES OF PARAGRAPH ONE OF SUBDIVISION (A) OF THIS SECTION, THE TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH VAPOR PRODUCT PURCHASED AT RETAIL. FOR PURPOSES OF PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION, THE TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE PRICE AT WHICH SUCH ITEMS OF THE SAME KIND OF VAPOR PRODUCT ARE OFFERED FOR SALE BY THE USER, AND THE MERE STORAGE, KEEPING, RETENTION OR WITHDRAWAL FROM STORAGE OF SUCH VAPOR PRODUCT BY THE PERSON THAT MANUFACTURED OR PROC- ESSED SUCH VAPOR PRODUCT SHALL NOT BE DEEMED A TAXABLE USE BY HIM OR HER. (C) THE TAX DUE PURSUANT TO THIS SECTION SHALL BE PAID AND REPORTED NO LATER THAN TWENTY DAYS AFTER SUCH USE ON A FORM PRESCRIBED BY THE COMMISSIONER. § 1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL. (A) EVERY PERSON WHO INTENDS TO SELL VAPOR PRODUCTS IN THIS STATE MUST RECEIVE FROM THE COMMISSIONER A CERTIFICATE OF REGISTRATION PRIOR TO ENGAGING IN BUSINESS. SUCH PERSON MUST ELECTRONICALLY SUBMIT A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION FOR EACH LOCATION AT WHICH VAPOR PRODUCTS WILL BE SOLD IN THIS STATE, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND SHALL BE ACCOMPANIED BY A NON-REFUNDABLE APPLICATION FEE OF THREE HUNDRED DOLLARS. (B) A VAPOR PRODUCTS DEALER CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE CALENDAR YEAR FOR WHICH IT IS ISSUED UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION OF THE TERM STATED ON THE CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE SHALL BE NULL AND VOID. A CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE AND SHALL BE DESTROYED IMMEDIATELY UPON THE VAPOR PRODUCTS DEALER CEASING TO DO BUSINESS AS SPECIFIED IN SUCH CERTIFICATE OR IN THE EVENT THAT SUCH BUSINESS NEVER COMMENCED. (C) EVERY VAPOR PRODUCT DEALER SHALL PUBLICLY DISPLAY A VAPOR PRODUCTS DEALER CERTIFICATE OF REGISTRATION IN EACH PLACE OF BUSINESS IN THIS STATE WHERE VAPOR PRODUCTS ARE SOLD AT RETAIL. A VAPOR PRODUCTS DEALER WHO HAS NO REGULAR PLACE OF BUSINESS SHALL PUBLICLY DISPLAY SUCH VALID CERTIFICATE ON EACH OF ITS CARTS, STANDS, TRUCKS OR OTHER MERCHANDISING DEVICES THROUGH WHICH IT SELLS VAPOR PRODUCTS. (D) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS- TRATION TO ANY APPLICANT WHO DOES NOT POSSESS A VALID CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER. IN ADDITION, THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGIS- TRATION, OR SUSPEND, CANCEL OR REVOKE A CERTIFICATE OF REGISTRATION ISSUED TO ANY PERSON WHO: (A) HAS A PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER; (B) HAS HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE OR ANY LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (C) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (D) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTICLE; (E) WILLFULLY FILES, CAUSES TO BE S. 1509--C 74 A. 2009--C FILED, GIVES OR CAUSES TO BE GIVEN A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTICLE WHICH IS FALSE; (F) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE; OR (G) WHOSE PLACE OF BUSINESS IS AT THE SAME PREMISES AS THAT OF A PERSON WHOSE VAPOR PRODUCTS DEALER REGISTRATION HAS BEEN REVOKED AND WHERE SUCH REVOCATION IS STILL IN EFFECT, UNLESS THE APPLICANT OR VAPOR PRODUCTS DEALER PROVIDES THE COMMISSIONER WITH ADEQUATE DOCUMENTA- TION DEMONSTRATING THAT SUCH APPLICANT OR VAPOR PRODUCTS DEALER ACQUIRED THE PREMISES OR BUSINESS THROUGH AN ARM'S LENGTH TRANSACTION AS DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER. (2) IN ADDITION TO THE GROUNDS PROVIDED IN PARAGRAPH ONE OF THIS SUBDIVISION, THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGISTRATION AND SHALL CANCEL OR SUSPEND A CERTIFICATE OF REGISTRATION AS DIRECTED BY AN ENFORCEMENT OFFICER PURSUANT TO ARTICLE THIRTEEN-F OF THE PUBLIC HEALTH LAW. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, AN APPLICANT WHOSE APPLICATION FOR A CERTIFICATE OF REGISTRA- TION IS REFUSED OR A VAPOR PRODUCTS DEALER WHOSE REGISTRATION IS CANCELLED OR SUSPENDED UNDER THIS PARAGRAPH SHALL HAVE NO RIGHT TO A HEARING UNDER THIS CHAPTER AND SHALL HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE COMMIS- SIONER WITH RESPECT TO SUCH REFUSAL, SUSPENSION OR CANCELLATION; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO DENY A VAPOR PRODUCTS DEALER A HEARING UNDER ARTICLE THIRTEEN-F OF THE PUBLIC HEALTH LAW OR TO PROHIBIT VAPOR PRODUCTS DEALERS FROM COMMENCING A COURT ACTION OR PROCEEDING AGAINST AN ENFORCEMENT OFFICER AS DEFINED IN SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC HEALTH LAW. (E) IF A VAPOR PRODUCTS DEALER IS SUSPENDED, CANCELLED OR REVOKED AND SUCH VAPOR PRODUCTS DEALER SELLS VAPOR PRODUCTS THROUGH MORE THAN ONE PLACE OF BUSINESS IN THIS STATE, THE VAPOR PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION ISSUED TO THAT PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE, WHERE SUCH VIOLATION OCCURRED, SHALL BE SUSPENDED, REVOKED OR CANCELLED. PROVIDED, HOWEVER, UPON A VAPOR PRODUCTS DEALER'S THIRD SUSPENSION, CANCELLATION OR REVOCATION WITHIN A FIVE-YEAR PERIOD FOR ANY ONE OR MORE BUSINESSES OWNED OR OPERATED BY THE VAPOR PRODUCTS DEALER, SUCH SUSPENSION, CANCELLATION, OR REVOCATION OF THE VAPOR PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION SHALL APPLY TO ALL PLACES OF BUSINESS WHERE HE OR SHE SELLS VAPOR PRODUCTS IN THIS STATE. (F) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION MUST NOTIFY THE COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE CERTIF- ICATE OR CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR THE CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS AND MUST BE MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER. (G) EVERY VAPOR PRODUCTS DEALER WHO HOLDS A CERTIFICATE OF REGISTRA- TION UNDER THIS ARTICLE SHALL BE REQUIRED TO REAPPLY FOR A CERTIFICATE OF REGISTRATION FOR THE FOLLOWING CALENDAR YEAR ON OR BEFORE THE TWENTI- ETH DAY OF SEPTEMBER AND SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND CONDITIONS, INCLUDING GROUNDS FOR REFUSAL, AS AN INITIAL REGISTRATION UNDER THIS ARTICLE, INCLUDING BUT NOT LIMITED TO THE PAYMENT OF THE THREE HUNDRED DOLLAR APPLICATION FEE FOR EACH RETAIL LOCATION. (H) IN ADDITION TO ANY OTHER PENALTY IMPOSED BY THIS CHAPTER, ANY VAPOR PRODUCTS DEALER WHO VIOLATES THE PROVISIONS OF THIS SECTION, (1) FOR A FIRST VIOLATION IS LIABLE FOR A CIVIL FINE NOT LESS THAN FIVE S. 1509--C 75 A. 2009--C THOUSAND DOLLARS BUT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND SUCH CERTIFICATE OF REGISTRATION MAY BE SUSPENDED FOR A PERIOD OF NOT MORE THAN SIX MONTHS; AND (2) FOR A SECOND OR SUBSEQUENT VIOLATION WITHIN THREE YEARS FOLLOWING A PRIOR VIOLATION OF THIS SECTION, IS LIABLE FOR A CIVIL FINE NOT LESS THAN TEN THOUSAND DOLLARS BUT NOT TO EXCEED THIRTY- FIVE THOUSAND DOLLARS AND SUCH CERTIFICATE OF REGISTRATION MAY BE SUSPENDED FOR A PERIOD OF UP TO THIRTY-SIX MONTHS; OR (3) FOR A THIRD VIOLATION WITHIN A PERIOD OF FIVE YEARS, ITS VAPOR PRODUCTS CERTIFICATE OR CERTIFICATES OF REGISTRATION ISSUED TO EACH PLACE OF BUSINESS OWNED OR OPERATED BY THE VAPOR PRODUCTS DEALER IN THIS STATE, SHALL BE REVOKED FOR A PERIOD OF UP TO FIVE YEARS. § 1184. ADMINISTRATIVE PROVISIONS. (A) EXCEPT AS OTHERWISE PROVIDED FOR IN THIS ARTICLE, THE TAXES IMPOSED BY THIS ARTICLE SHALL BE ADMINIS- TERED AND COLLECTED IN A LIKE MANNER AS AND JOINTLY WITH THE TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS CHAPTER. IN ADDITION, EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, ALL OF THE PROVISIONS OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER (EXCEPT SECTIONS ELEVEN HUNDRED SEVEN, ELEVEN HUNDRED EIGHT, ELEVEN HUNDRED NINE, AND ELEVEN HUNDRED FORTY-EIGHT) RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION AND REVIEW OF THE TAXES IMPOSED BY SUCH SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN, INCLUDING, BUT NOT LIMITED TO, THE PROVISIONS RELATING TO DEFINITIONS, RETURNS, EXEMPTIONS, PENALTIES, TAX SECRECY, PERSONAL LIABILITY FOR THE TAX, AND COLLECTION OF TAX FROM THE CUSTOMER, SHALL APPLY TO THE TAXES IMPOSED BY THIS ARTI- CLE SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO THE TAXES IMPOSED BY THIS ARTICLE WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTI- CLE AND SUCH MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE TAXES SO IMPOSED. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE. (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE EXEMPTIONS PROVIDED IN PARAGRAPH TEN OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, AND THE PROVISIONS OF SECTION ELEVEN HUNDRED SIXTEEN, EXCEPT THOSE PROVIDED IN PARAGRAPHS ONE, TWO, THREE AND SIX OF SUBDIVISION (A) OF SUCH SECTION, SHALL NOT APPLY TO THE TAXES IMPOSED BY THIS ARTICLE. (C) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION OR SECTION ELEVEN HUNDRED FORTY-SIX OF THIS CHAPTER, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE COMMISSIONER OF HEALTH OR HIS OR HER AUTHORIZED REPRESENTATIVE TO INSPECT ANY RETURN RELATED TO THE TAX IMPOSED BY THIS ARTICLE AND MAY FURNISH TO THE COMMISSIONER OF HEALTH ANY SUCH RETURN OR SUPPLY HIM OR HER WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF A LIABILITY UNDER THIS ARTICLE. § 1185. CRIMINAL PENALTIES. THE CRIMINAL PENALTIES IN SECTIONS EIGH- TEEN HUNDRED ONE THROUGH EIGHTEEN HUNDRED SEVEN AND EIGHTEEN HUNDRED SEVENTEEN OF THIS CHAPTER SHALL APPLY TO THIS ARTICLE WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE. § 1186. DEPOSIT AND DISPOSITION OF REVENUE. THE TAXES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE AND COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK- S. 1509--C 76 A. 2009--C ING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER, TO THE CREDIT OF THE COMPTROLLER IN TRUST FOR THE TOBACCO CONTROL AND INSURANCE INITIATIVES POOL ESTABLISHED BY SECTION NINETY-TWO-DD OF THE STATE FINANCE LAW AND DISTRIBUTED BY THE COMMISSIONER OF HEALTH IN ACCORDANCE WITH SECTION TWENTY-EIGHT HUNDRED SEVEN-V OF THE PUBLIC HEALTH LAW. 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. PROVIDED, HOWEVER THAT THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNTS HE OR SHE RECEIVES FROM THE REGISTRATION FEES UNDER SECTION ELEVEN HUNDRED EIGHTY-THREE OF THIS ARTICLE, BEFORE DEPOSIT INTO THE TOBACCO CONTROL AND INSURANCE INITIATIVES POOL, 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 TAXES IMPOSED BY THIS ARTICLE. § 2. Subsection (a) of section 92-dd of the state finance law, as amended by section 3 of part T of chapter 61 of the laws of 2011, is amended to read as follows: (a) On and after April first, two thousand five, such fund shall consist of the revenues heretofore and hereafter collected or required to be deposited pursuant to paragraph (a) of subdivision eighteen of section twenty-eight hundred seven-c, and sections twenty-eight hundred seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t of the public health law, subdivision (b) of section four hundred eight- y-two AND SECTION ELEVEN HUNDRED EIGHTY-SIX of the tax law and required to be credited to the tobacco control and insurance initiatives pool, subparagraph (O) of paragraph four of subsection (j) of section four thousand three hundred one of the insurance law, section twenty-seven of part A of chapter one of the laws of two thousand two and all other moneys credited or transferred thereto from any other fund or source pursuant to law. § 3. This act shall take effect on the first day of a quarterly period described in subdivision (b) of section 1136 of the tax law next commencing at least one hundred eighty days after this act shall become a law, and shall apply to sales and uses of vapor products on or after such date. PART VV Intentionally Omitted PART WW Section 1. Section 1166-a of the tax law, as added by section 1 of part F of chapter 25 of the laws of 2009, is amended to read as follows: § 1166-a. Special supplemental tax on passenger car rentals WITHIN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (a) In addition to the tax imposed under section eleven hundred sixty of this article and in addition to any tax imposed under any other article of this chapter, there is hereby imposed and there shall be paid a tax at the rate of [five] SIX percent upon the receipts from every rental of a passenger car which is a retail sale of such passenger car within the metropolitan S. 1509--C 77 A. 2009--C commuter transportation district as defined in [subdivision] SUBSECTION (a) of section eight hundred of this chapter. (b) Except to the extent that a passenger car rental described in subdivision (a) of this section, OR SECTION ELEVEN HUNDRED SIXTY-SIX-B OF THIS ARTICLE, has already been or will be subject to the tax imposed under such subdivision OR SECTION and except as otherwise exempted under this article, there is hereby imposed on every person and there shall be paid a use tax for the use within the metropolitan commuter transporta- tion district as defined in [subdivision] SUBSECTION (a) of section eight hundred of this chapter; of any passenger car rented by the user [which] THAT is a purchase at retail of such passenger car, but not including any lease of a passenger car to which subdivision (i) of section eleven hundred eleven of this chapter applies. For purposes of this [paragraph] SUBDIVISION, the tax shall be at the rate of [five] SIX percent of the consideration given or contracted to be given for such property, or for the use of such property, including any charges for shipping or delivery as described in paragraph three of subdivision (b) of section eleven hundred one of this chapter, but excluding any credit for tangible personal property accepted in part payment and intended for resale. § 2. The tax law is amended by adding a new section 1166-b to read as follows: § 1166-B. SPECIAL SUPPLEMENTAL TAX ON PASSENGER CAR RENTALS OUTSIDE OF THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (A) IN ADDITION TO THE TAX IMPOSED UNDER SECTION ELEVEN HUNDRED SIXTY OF THIS ARTICLE AND IN ADDITION TO ANY TAX IMPOSED UNDER ANY OTHER ARTICLE OF THIS CHAPTER, THERE IS HEREBY IMPOSED AND THERE SHALL BE PAID A TAX AT THE RATE OF SIX PERCENT UPON THE RECEIPTS FROM EVERY RENTAL OF A PASSENGER CAR THAT IS NOT SUBJECT TO THE TAX DESCRIBED IN SECTION ELEVEN HUNDRED SIXTY-SIX-A OF THIS ARTICLE, BUT WHICH IS A RETAIL SALE OF SUCH PASSENGER CAR WITHIN THE STATE. (B) EXCEPT TO THE EXTENT THAT A PASSENGER CAR RENTAL DESCRIBED IN SUBDIVISION (A) OF THIS SECTION OR IN SECTION ELEVEN HUNDRED SIXTY-SIX-A OF THIS ARTICLE, HAS ALREADY BEEN SUBJECT TO THE TAX IMPOSED UNDER SUCH SUBDIVISION OR SECTION, AND EXCEPT AS OTHERWISE EXEMPTED UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED ON EVERY PERSON AND THERE SHALL BE PAID A USE TAX FOR THE USE WITHIN THE STATE OF ANY PASSENGER CAR RENTED BY THE USER THAT IS A PURCHASE AT RETAIL OF SUCH PASSENGER CAR, BUT NOT INCLUDING ANY LEASE OF A PASSENGER CAR TO WHICH SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS CHAPTER APPLIES. FOR PURPOSES OF THIS SUBDIVISION, THE TAX SHALL BE AT THE RATE OF SIX PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH PROPERTY, OR FOR THE USE OF SUCH PROPERTY, INCLUDING ANY CHARGES FOR SHIPPING OR DELIVERY AS DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, BUT EXCLUDING ANY CREDIT FOR TANGIBLE PERSONAL PROPERTY ACCEPTED IN PART PAYMENT AND INTENDED FOR RESALE. § 3. Section 1167 of the tax law, as amended by section 3 of part F of chapter 25 of the laws of 2009, is amended to read as follows: § 1167. Deposit and disposition of revenue. All taxes, interest and penalties 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, except that after reserving amounts in accordance with such section one hundred seventy-one-a of this chapter, the remainder shall be paid by the comptroller to the credit of the highway and bridge trust fund established by section S. 1509--C 78 A. 2009--C eighty-nine-b of the state finance law, provided, however[,]: (A) taxes, interest and penalties collected or received pursuant to section eleven hundred sixty-six-a of this article shall be paid to the credit of the metropolitan transportation authority aid trust account of the metropol- itan transportation authority financial assistance fund established by section ninety-two-ff of the state finance law; AND (B) TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED PURSUANT TO SECTION ELEVEN HUNDRED SIXTY-SIX-B OF THIS ARTICLE SHALL BE PAID TO THE CREDIT OF THE PUBLIC TRANSPORTATION SYSTEMS OPERATING ASSISTANCE ACCOUNT ESTABLISHED BY SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW. § 4. This act shall take effect June 1, 2019, and shall apply to rentals of passenger cars commencing on and after such date whether or not under a prior contract; provided, however where such passenger car rentals are billed on a monthly, quarterly or other period basis, the tax imposed by this act shall apply to the rental for such period if more than half of the days included in such period are days subsequent to such effective date. PART XX Section 1. The tax law is amended by adding a new article 20-D to read as follows: ARTICLE 20-D EXCISE TAX ON SALE OF OPIOIDS SECTION 497. DEFINITIONS. 498. IMPOSITION OF EXCISE TAX. 499. RETURNS TO BE SECRET. § 497. DEFINITIONS. THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN- INGS WHEN USED IN THIS ARTICLE. (A) "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-V OF SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW. THE TERM "OPIOID" SHALL NOT MEAN BUPRENORPHINE, METHADONE, OR MORPHINE. (B) "UNIT" SHALL MEAN A SINGLE FINISHED DOSAGE FORM OF AN OPIOID, SUCH AS A PILL, TABLET, CAPSULE, SUPPOSITORY, TRANSDERMAL PATCH, BUCCAL FILM, MILLILITER OF LIQUID, MILLIGRAM OF TOPICAL PREPARATION, OR ANY OTHER FORM. (C) "STRENGTH PER UNIT" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT, AS MEASURED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC. (D) "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. (E) "MORPHINE MILLIGRAM EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY ITS STRENGTH PER UNIT MULTIPLIED BY THE MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR. (F) "REGISTRANT" SHALL MEAN: (1) ANY PERSON, FIRM, CORPORATION OR ASSOCIATION THAT: (I) IS REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT AS A WHOLESALER, MANUFACTURER, OR OUTSOURCING FACILITY PURSU- ANT TO SECTION SIX THOUSAND EIGHT HUNDRED EIGHT OR SECTION SIX THOUSAND EIGHT HUNDRED EIGHT-B OF THE EDUCATION LAW AND (II) HOLDS AND TRANSFERS TITLE TO AN OPIOID UNIT; (2) ANY PERSON, FIRM, CORPORATION OR ASSOCI- S. 1509--C 79 A. 2009--C ATION THAT: (I) WOULD BE REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT AS A WHOLESALER, MANUFACTURER, OR OUTSOURCING FACILITY PURSU- ANT TO SUCH SECTION SIX THOUSAND EIGHT HUNDRED EIGHT-B BUT FOR THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION AND (II) HOLDS AND TRANS- FERS TITLE TO AN OPIOID UNIT; OR (3) ANY PERSON, FIRM, CORPORATION OR ASSOCIATION THAT: (I) IS REQUIRED TO BE REGISTERED WITH THE HEALTH DEPARTMENT AS A MANUFACTURER OR DISTRIBUTOR OF A CONTROLLED SUBSTANCE PURSUANT TO SECTION THIRTY-THREE HUNDRED TEN OF THE PUBLIC HEALTH LAW AND (II) HOLDS AND TRANSFERS TITLE TO AN OPIOID UNIT. (G) "WHOLESALE ACQUISITION COST" SHALL MEAN THE MANUFACTURER'S LIST PRICE FOR AN OPIOID UNIT TO WHOLESALERS OR DIRECT PURCHASERS IN THE UNITED STATES, NOT INCLUDING PROMPT PAY OR OTHER DISCOUNTS, REBATES OR REDUCTIONS IN PRICE, FOR THE MOST RECENT MONTH FOR WHICH THE INFORMATION IS AVAILABLE, AS REPORTED IN WHOLESALE PRICE GUIDES OR OTHER PUBLICA- TIONS OF DRUG OR BIOLOGICAL PRICING DATA. (H) "SALE" SHALL MEAN ANY TRANSFER OF TITLE TO AN OPIOID UNIT FOR A CONSIDERATION WHERE ACTUAL OR CONSTRUCTIVE POSSESSION OF SUCH OPIOID UNIT IS TRANSFERRED BY A REGISTRANT HOLDING TITLE TO SUCH OPIOID UNIT TO A PURCHASER OR ITS DESIGNEE IN THIS STATE. A SALE SHALL NOT INCLUDE EITHER THE DISPENSING OF AN OPIOID UNIT PURSUANT TO A PRESCRIPTION TO AN ULTIMATE CONSUMER OR THE TRANSFER OF TITLE TO AN OPIOID UNIT FROM A MANUFACTURER IN THIS STATE TO A PURCHASER OUTSIDE THIS STATE WHEN SUCH OPIOID UNIT WILL BE USED OR CONSUMED OUTSIDE THIS STATE. § 498. IMPOSITION OF EXCISE TAX. (A) THERE IS HEREBY IMPOSED AN EXCISE TAX ON THE FIRST SALE OF EVERY OPIOID UNIT IN THE STATE AT THE FOLLOWING RATES: (1) A QUARTER OF A CENT PER MORPHINE MILLIGRAM EQUIVALENT WHERE THE WHOLESALE ACQUISITION COST IS LESS THAN FIFTY CENTS, OR (2) ONE AND ONE-HALF CENTS PER MORPHINE MILLIGRAM EQUIVALENT WHERE THE WHOLESALE ACQUISITION COST IS FIFTY CENTS OR MORE; EXCEPT THAT SUCH TAX SHALL NOT APPLY WHEN SUCH FIRST SALE IS TO ANY PROGRAM OPERATED PURSUANT TO ARTI- CLE FORTY OF THE PUBLIC HEALTH LAW AND ARTICLE THIRTY-TWO OF THE MENTAL HYGIENE LAW. THE TAX IMPOSED BY THIS ARTICLE SHALL BE CHARGED AGAINST AND PAID BY THE REGISTRANT MAKING SUCH FIRST SALE, AND SHALL ACCRUE AT THE TIME OF SUCH SALE. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO PREVENT EVASION OF THE TAX HEREBY IMPOSED, IT SHALL BE PRESUMED THAT ANY SALE OF AN OPIOID UNIT IN THIS STATE BY A REGIS- TRANT IS THE FIRST SALE OF SUCH IN THE STATE UNTIL THE CONTRARY IS ESTABLISHED, AND THE BURDEN OF PROVING THAT ANY SALE IS NOT THE FIRST SALE IN THE STATE SHALL BE UPON THE REGISTRANT. (B) EVERY REGISTRANT LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE SHALL FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER SHOWING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT AND WHOLE- SALE ACQUISITION COSTS OF SUCH OPIOID UNITS THAT ARE SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE, THE AMOUNT OF TAX DUE THEREON, AND SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE FILED FOR QUARTERLY PERIODS ENDING ON THE LAST DAY OF MARCH, JUNE, SEPTEMBER AND DECEMBER OF EACH YEAR. EACH RETURN SHALL BE FILED WITHIN TWENTY DAYS AFTER THE END OF SUCH QUARTERLY PERIOD AND SHALL COVER ALL OPIOID SALES IN THE STATE MADE IN THE PRIOR QUARTER, EXCEPT THAT THE FIRST RETURN REQUIRED TO BE FILED PURSUANT TO THIS SECTION SHALL BE DUE ON JANUARY TWENTIETH, TWO THOUSAND TWENTY, 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 NINETEEN. EVERY REGISTRANT REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF TAX DUE FOR THE PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED WHEN DUE, THE S. 1509--C 80 A. 2009--C TAX SHALL BE DUE THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED. THE COMMISSIONER MAY REQUIRE THAT THE RETURNS AND PAYMENTS REQUIRED BY THIS SECTION BE FILED OR PAID ELECTRONICALLY. (C) WHERE A SALE OF AN OPIOID UNIT BY A REGISTRANT HAS BEEN CANCELLED BY THE PURCHASER AND TAX THEREON WAS PREVIOUSLY PAID BY THE REGISTRANT, THE COMMISSIONER SHALL ALLOW TO THE REGISTRANT A REFUND OR CREDIT OF SUCH TAX ON A RETURN FOR A LATER PERIOD SUBJECT TO THE LIMITATIONS PERI- OD FOR CLAIMING A REFUND OR CREDIT AS PRESCRIBED BY SECTION ONE THOUSAND EIGHTY-SEVEN OF THIS CHAPTER. WHERE A REGISTRANT PROVES THAT AN OPIOID UNIT FOR WHICH IT PREVIOUSLY PAID A TAX HAS BEEN DISTRIBUTED OUT OF THE STATE FOR USE OR CONSUMPTION OUTSIDE THIS STATE, THE COMMISSIONER SHALL ALLOW A CREDIT TO THE REGISTRANT FOR TAX PAID ON A RETURN FOR A LATER PERIOD SUBJECT TO THE LIMITATIONS PERIOD FOR CLAIMING A CREDIT AS PRESCRIBED BY SECTION ONE THOUSAND EIGHTY-SEVEN OF THIS CHAPTER. (D) ALL SALES SLIPS, INVOICES, RECEIPTS, OR OTHER STATEMENTS OR MEMO- RANDA OF SALE FROM ANY SALE OR PURCHASE OF OPIOID UNITS BY REGISTRANTS MUST BE RETAINED FOR A PERIOD OF SIX YEARS AFTER THE DUE DATE OF THE RETURN TO WHICH THEY RELATE, UNLESS THE COMMISSIONER PROVIDES FOR A DIFFERENT RETENTION PERIOD BY RULE OR REGULATION. SUCH RECORDS MUST BE SUFFICIENT TO DETERMINE THE NUMBER OF UNITS TRANSFERRED ALONG WITH THE MORPHINE MILLIGRAM EQUIVALENT OF THE UNITS TRANSFERRED, AND OTHERWISE BE SUITABLE TO DETERMINE THE CORRECT AMOUNT OF TAX DUE. SUCH RECORDS MUST ALSO RECORD EITHER (1) THE ADDRESS FROM WHICH THE UNITS ARE SHIPPED OR DELIVERED, ALONG WITH THE ADDRESS TO WHICH THE UNITS ARE SHIPPED OR DELIVERED, OR (2) THE PLACE AT WHICH ACTUAL PHYSICAL POSSESSION OF THE UNITS IS TRANSFERRED. SUCH RECORDS SHALL BE PRODUCED UPON DEMAND BY THE COMMISSIONER. (E) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCORPO- RATED IN FULL INTO THIS ARTICLE AND HAD EXPRESSLY REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH ARTICLE TWENTY-SEVEN IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. (F) THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH THE COMMISSIONER IN ADMINISTERING THIS TAX, INCLUDING SHARING WITH THE COMMISSIONER PERTINENT INFORMATION ABOUT REGISTRANTS UPON THE REQUEST OF THE COMMISSIONER. (G) EACH REGISTRANT SHALL PROVIDE A REPORT TO THE DEPARTMENT OF HEALTH DETAILING ALL OPIOIDS SOLD BY SUCH REGISTRANT IN THE STATE OF NEW YORK. SUCH REPORT SHALL INCLUDE: (I) THE REGISTRANT'S NAME, ADDRESS, PHONE NUMBER, FEDERAL DRUG ENFORCEMENT AGENCY (DEA) REGISTRATION NUMBER, EDUCATION DEPARTMENT REGISTRATION NUMBER, AND CONTROLLED SUBSTANCE LICENSE NUMBER ISSUED BY THE DEPARTMENT OF HEALTH, IF APPLICABLE; (II) THE NAME, ADDRESS AND DEA REGISTRATION NUMBER OF THE ENTITY TO WHOM THE OPIOID WAS SOLD; (III) THE DATE OF THE SALE OF THE OPIOID; (IV) THE GROSS RECEIPT TOTAL, IN DOLLARS, FOR EACH OPIOID SOLD; (V) THE NAME AND NATIONAL DRUG CODE OF THE OPIOID SOLD; (VI) THE NUMBER OF CONTAINERS AND THE STRENGTH AND METRIC QUANTITY OF CONTROLLED SUBSTANCE IN EACH CONTAINER OF THE OPIOID SOLD; (VII) THE TOTAL NUMBER OF MORPHINE MILLIGRAM EQUIVALENTS SOLD; AND (VIII) ANY OTHER ELEMENTS AS DEEMED NECESSARY BY THE COMMISSIONER OF HEALTH. S. 1509--C 81 A. 2009--C SUCH INFORMATION SHALL BE REPORTED ANNUALLY IN SUCH FORM AS DEFINED BY THE COMMISSIONER OF HEALTH AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF SECTION FOUR HUNDRED NINETY-NINE OF THIS ARTICLE. § 499. RETURNS TO BE SECRET. (A) EXCEPT IN ACCORDANCE WITH A PROPER JUDICIAL ORDER OR AS OTHERWISE PROVIDED FOR BY LAW, IT SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT, OR ANY PERSON ENGAGED OR RETAINED BY SUCH DEPARTMENT ON AN INDEPENDENT CONTRACT BASIS OR ANY OTHER 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 A REGISTRANT 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 COMMIS- SIONER 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 THERE- BY 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 DELIV- ERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS ARTI- CLE, OR THE PROVISION OF ANY INFORMATION CONTAINED THEREIN, 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 CHAP- TER 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 INSPECTION OF THE RETURNS OR REPORTS REQUIRED UNDER THIS ARTICLE BY THE COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE DEPART- MENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF ANY TAX PAID BY A REGISTRANT OR OTHER PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO A REGISTRANT, OR A DULY AUTHORIZED REPRESEN- TATIVE OF SUCH REGISTRANT, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH REGISTRANT 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. (B)(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 IN THIS STATE FOR A PERIOD OF FIVE YEARS THEREAFTER. (2) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S. 1509--C 82 A. 2009--C § 2. Section 1825 of the tax law, as amended by section 3 of part NNN of chapter 59 of the laws of 2018, is amended to read as follows: § 1825. Violation of secrecy provisions of the tax law.--Any person who violates the SECRECY provisions of [subdivision (b) of section twen- ty-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-sev- en, subsection (a) of section nine hundred ninety-four, subdivision (a) of section eleven hundred forty-six, section twelve hundred eighty-sev- en, section twelve hundred ninety-six, section twelve hundred ninety- nine-F, subdivision (a) of section fourteen hundred eighteen, subdivi- sion (a) of section fifteen hundred eighteen, subdivision (a) of section fifteen hundred fifty-five of] this chapter[, and] OR subdivision (e) of section 11-1797 of the administrative code of the city of New York shall be guilty of a misdemeanor. § 3. Subdivision 1 of section 171-a of the tax law, as amended by section 3 of part MM of chapter 59 of the laws of 2018, 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-D, 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 comp- troller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such articles of this chapter out of which amount the comptroller shall pay any refunds or reimbursements to which taxpayers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is S. 1509--C 83 A. 2009--C certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursu- ant to subdivision five of section one hundred seventy-one-d and subdi- vision six of section one hundred seventy-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall cred- it to the special offset fiduciary account, pursuant to section ninety- one-c of the state finance law, any such amount creditable as a liabil- ity as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commissioner as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by article twenty-two of this chap- ter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- ty-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corporation, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy- one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 4. Subdivision 1 of section 171-a of the tax law, as amended by section 4 of part MM of chapter 59 of the laws of 2018, 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- S. 1509--C 84 A. 2009--C 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-D, 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 shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- S. 1509--C 85 A. 2009--C 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. § 5. Section 5 of part NN of chapter 57 of the laws of 2018, amending the public health law and the state finance law relating to enacting the opioid stewardship act, is amended to read as follows: § 5. This act shall take effect July 1, 2018 and shall expire and be deemed to be repealed on June 30, 2024, provided that, effective imme- diately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date, AND, PROVIDED THAT THIS ACT SHALL ONLY APPLY TO THE SALE OR DISTRIBUTION OF OPIOIDS IN THE STATE OF NEW YORK ON OR BEFORE DECEMBER 31, 2018. § 6. This act shall take effect July 1, 2019; 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 YY Section 1. Subsections (b) and (c) of section 857 of the tax law, as added by section 1 of part MM of chapter 59 of the laws of 2018, are amended to read as follows: (b) [Notwithstanding the provisions of section six hundred ninety-sev- en 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. 1509--C 86 A. 2009--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 inclusion of specific employee-level detail. § 2. Subsection (d) of section 850 of the tax law, as added by section 1 of part MM of chapter 59 of the laws of 2018, is amended to read as follows: (d) Covered employee. Covered employee means an employee of an elect- ing employer who is EMPLOYED IN NEW YORK, WHO IS required to have amounts withheld under section six hundred seventy-one of this chapter, and WHO receives annual wages and compensation from his or her employer of more than forty thousand dollars annually. THE DETERMINATION OF WHETHER AN EMPLOYEE IS A COVERED EMPLOYEE UNDER THIS ARTICLE WILL BE MADE BY UTILIZING THE RULES APPLICABLE TO THE JURISDICTION OF EMPLOYMENT FOR PURPOSES OF THE STATEWIDE WAGE REPORTING SYSTEM UNDER SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER. § 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after the effective date of part MM of chapter 59 of the laws of 2018. PART ZZ Section 1. The opening paragraph of subdivision 7 of section 221 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part NN of chapter 59 of the laws of 2018, 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 [eighteen] NINETEEN 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 S. 1509--C 87 A. 2009--C 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 NN of chapter 59 of the laws of 2018, 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 [eighteen] NINETEEN 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. This act shall take effect immediately. PART AAA Section 1. Section 28 of the tax law, as added by section 2 of part V of chapter 62 of the laws of 2006, paragraph 1 of subdivision (a) as amended by chapter 518 of the laws of 2018, paragraph 2 of subdivision (a) as amended by chapter 300 of the laws of 2007, subparagraph (i) of paragraph 2 of subdivision (a) as amended by section 2 of part I of chapter 59 of the laws of 2012, subparagraph (iii) of paragraph 2 of subdivision (a) as amended by section 2 of part O of chapter 59 of the laws of 2014, paragraph 3 of subdivision (a) and subdivision (d) as amended by section 45 of part A of chapter 59 of the laws of 2014, para- graph 4 of subdivision (a) as separately amended by section 45 of part A and section 6 of part S of chapter 59 of the laws of 2014, paragraph 2 of subdivision (b) as amended by chapter 448 of the laws of 2009, subdi- vision (c) as added and subdivision (d) as relettered by section 2 of part J of chapter 59 of the laws of 2015, is amended to read as follows: § 28. Empire state commercial production credit. (a) Allowance of credit. (1) A taxpayer which is a qualified commercial production compa- ny, or which is a sole proprietor of a qualified commercial production company, and which is subject to tax under article nine-A or twenty-two of this chapter, shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (c) of this section, to be computed as provided in this section. Provided, however, to be eligible for such credit, at least seventy-five percent of the production costs (excluding post production costs) paid or incurred directly and predomi- nantly in the actual filming or recording of the qualified commercial must be costs incurred in New York state. The tax credit allowed pursu- ant to this section shall apply to taxable years beginning before Janu- ary first, two thousand twenty-four. (2) The state has annually seven million dollars in total tax credits to disburse to all eligible commercial production companies. The seven million dollars in total tax credits shall be allocated according to subparagraphs (i)[,] AND (ii) [and (iii)] of this paragraph: (i) [The state annually will disburse one million of the total seven million in tax credits to all eligible production companies and 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 twenty percent of S. 1509--C 88 A. 2009--C the qualified production costs paid or incurred in the production of a qualified commercial, provided that the qualified production costs paid or incurred are attributable to the use of tangible property or the performance of services within the state in the production of such qual- ified commercial. To be eligible for said credit the total qualified production costs of a qualified production company must be greater in the aggregate during the current calendar year than the average of the three previous years for which the credit was applied. Provided, howev- er, that until a qualified production company has established a three year history, the credit will be based on either the previous year or the average of the two previous years, whichever period is longer for the qualified production company seeking the credit. If the qualified production company has never applied for the growth credit, the previous year's data will be used to create a benchmark. The tax credit shall be applied only to the amount of the total qualified production costs of the current calendar year that are greater than the total amount of production costs of the appropriate measurement period as described in this subparagraph. The tax credit must be distributed to eligible production companies on a pro rata basis, provided, however, that no such qualified production company shall receive more than three hundred thousand dollars annually for such credit. The credit shall be allowed for the taxable year in which the production of such qualified commer- cial is completed. (ii)] The state annually will disburse [three] FOUR million of the total seven million in tax credits to all eligible production companies who film or record qualified commercials within the metropolitan commu- ter transportation district as defined in section twelve hundred sixty- two of the public authorities law. 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 [five] TWENTY percent of the qualified production costs paid or incurred in the production of a qualified commercial, provided that the qualified production costs paid or incurred are attributable to the use of tangible property or the performance of services within the state in the production of such qualified commercial. To be eligible for said credit the total qualified production costs of a qualified production company must be greater than five hundred thousand dollars in the aggregate during the calendar year. Such credit will be applied to qualified production costs exceeding five hundred thousand dollars in a calendar year. [(iii)] (II) The state annually will disburse three million of the total seven million in tax credits to all eligible production companies who film or record a qualified commercial outside of the metropolitan commuter transportation district as defined in section twelve hundred sixty-two of the public authorities law; provided, however, that if, after July thirty-first the state reviews all applications from eligible production companies who film or record a qualified commercial outside of the metropolitan commuter district for a given year, tax credits remain unallocated under this subparagraph, those credits shall be allotted to the credits set forth in subparagraph (i) of this paragraph for use consistent with the purposes of such subparagraph. 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 [five] THIRTY percent of the qualified production costs paid or incurred in the production of a qual- ified commercial, provided that the qualified production costs paid or incurred are attributable to the use of tangible property or the performance of services within the state in the production of such qual- S. 1509--C 89 A. 2009--C ified commercial. To be eligible for said credit the total qualified production costs of a qualified production company must be greater than one hundred thousand dollars in the aggregate during the calendar year. Such credit will be applied to ALL qualified production costs [exceeding one hundred thousand dollars] in a calendar year. (3) No qualified production costs used by a taxpayer either as the basis for the allowance of the credit provided for under this section or used in the calculation of the credit provided for under this section shall be used by such taxpayer to claim any other credit allowed pursu- ant to this chapter. (4) Notwithstanding any provisions of this section to the contrary, a corporation or partnership, which otherwise qualifies as a qualified commercial production company, and is similar in operation and in owner- ship to a business entity or entities taxable, or previously taxable, under section one hundred eighty-three or one hundred eighty-four or former section one hundred eighty-five of article nine; article nine-A or thirty-three of this chapter or which would have been subject to tax under article twenty-three of this chapter (as such article was in effect on January first, nineteen hundred eighty) or which would have been subject to tax under article thirty-two of this chapter (as such article was in effect on December thirty-first, two thousand fourteen) or the income or losses of which is or was includable under article twenty-two of this chapter shall not be deemed a new or separate busi- ness, and therefore shall not be eligible for empire state commercial production benefits, if it was not formed for a valid business purpose, as such term is defined in clause (D) of subparagraph one of paragraph (o) of subdivision nine of section two hundred eight of this chapter and was formed solely to gain empire state commercial production credit benefits. (b) Definitions. As used in this section, the following terms shall have the following meanings: (1) "Qualified production costs" means production costs only to the extent such costs are attributable to the use of tangible property or the performance of services within the state directly and predominantly in the production (including pre-production and post-production) of a qualified commercial. (2) "Production costs" means any costs for tangible property used and services performed directly and predominantly in the production (includ- ing pre-production and post-production) of a qualified commercial. "Production costs" shall not include (i) costs for a story, script or scenario to be used for a qualified commercial and (ii) wages or sala- ries or other compensation for writers, directors, including music directors, producers and performers (other than background actors with no scripted lines who are employed by a qualified company and musi- cians). "Production costs" generally include technical and crew production costs, such as expenditures for commercial production facili- ties and/or location costs, or any part thereof, film, audiotape, vide- otape or digital medium, props, makeup, wardrobe, commercial processing, camera, sound recording, scoring, set construction, lighting, shooting, editing and meals. For purposes of this section, "post production costs" include the production of original content for a qualified commercial employing techniques traditionally used in post-production for visual effects, graphic design, animation, and musical composition. However, where the commercial consists in its entirety of techniques such as visual effects, graphic design, or animation, such costs incurred in the production of the commercial, when occurring in New York, shall be S. 1509--C 90 A. 2009--C deemed qualified production costs for the purposes of this section. Provided further, however, that "post production costs" shall not include the editing of previously produced content for a qualified commercial. (3) "Qualified commercial" means an advertisement OF ANY LENGTH that is recorded on film, audiotape, videotape or digital medium in New York for multi-market distribution by way of radio, television networks, cable, satellite [or], motion picture theaters OR INTERNET. "Qualified commercial" shall not include (i) news or current affairs program, interview or talk program, network promos, i.e., commercials promoting television series or movies, "how-to" (i.e., instructional) commercial or program, commercial or program consisting entirely of stock footage, trailers promoting theatrical films, sporting event or sporting program, game show, award ceremony, daytime drama (i.e., daytime "soap opera"), or "reality" program, or (ii) a production for which records are required under section 2257 of title 18, United States code, to be main- tained with respect to any performer in such production (reporting of books, commercials, etc. with respect to sexually explicit conduct). (4) "Qualified commercial production company" is a corporation, part- nership, limited partnership, or other entity or individual which or who is principally engaged in the production of a qualified commercial and controls the production of the qualified commercial and is not the distributor, or THE contracting entity for production of such commercial, NOR IS A VARIABLE INTEREST ENTITY OF SUCH DISTRIBUTOR OR CONTRACTING ENTITY. (c) The department of economic development shall submit, on or before December first of each year, to the governor, the director of the divi- sion of the budget, the temporary president of the senate, and the speaker of the assembly an annual report including, but not limited to, the following information regarding the previous calendar year: (1) the total dollar amount of credits allocated, the name and address of each qualified commercial production company allocated credits under this section, the total amount of credits allocated to each qualified commercial production company, the total amount of qualified production costs and production costs for each qualified commercial production company, and the estimated number of employees, credit-eligible man hours, and credit-eligible wages associated with each qualified commer- cial production company allocated credits under this section; (2) for qualified commercial production companies that were allocated credit pursuant to subparagraph [(ii)] (I) of paragraph two of subdivi- sion (a) of this section: the name and address of each qualified commer- cial production company, the total dollar amount of credits allocated, the total amount of credits allocated to each qualified commercial production company, total qualified production costs and production costs for each qualified production company, and the estimated number of employees, credit-eligible man hours, and credit-eligible wages associ- ated with each qualified commercial production company that filmed or recorded a qualified commercial within the district; (3) for qualified commercial production companies that were allocated credit pursuant to subparagraph [(iii)] (II) of paragraph two of subdi- vision (a) of this section: the name and address of each qualified commercial production company, the total dollar amount of credits allo- cated, the total amount of credits allocated to each qualified commer- cial production company, total qualified production costs and production costs for each qualified production company, and the estimated number of employees, credit-eligible man hours, and credit-eligible wages associ- S. 1509--C 91 A. 2009--C ated with each qualified commercial production company that filmed or recorded a qualified commercial outside the district; and (4) the amount of credits reallocated to all eligible qualified commercial production companies pursuant to subparagraph [(iii)] (II) of paragraph two of subdivision (a) of this section. (5) The report may also include any recommendations for changes in the calculation or administration of the credit, recommendations regarding continuing modification or repeal of this credit, and any other informa- tion regarding this credit as may be useful and appropriate. (d) Cross-references. For application of the credit provided for in this section, see the following provision of this chapter: (1) article 9-A: section 210-B: subdivision 23. (2) article 22: section 606: subsection (jj). § 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019. PART BBB Section 1. The opening paragraph of subsection (b) of section 619 of the tax law, as amended by chapter 243 of the laws of 1967, is amended to read as follows: The New York fiduciary adjustment shall be the net amount of the modifications described in section six hundred twelve (including subsection (d) if the estate or trust is a beneficiary of another estate or trust), [and] in subsection (c) and paragraphs (2) and (3) of subsection (d) of section six hundred fifteen, AND IN SUBSECTION (E) OF THIS SECTION, which relate to items of income, gain, loss or deduction of an estate or trust. The net amount of such modifications shall not include: § 2. Section 619 of the tax law is amended by adding a new subsection (e) to read as follows: (E) ADDITIONAL MODIFICATIONS. (1) FOR ANY TAXABLE YEAR BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN, AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, TO THE EXTENT THAT THE ESTATE OR TRUST CLAIMED A DEDUCTION FOR TAXES UNDER SECTION 164 OF THE INTERNAL REVENUE CODE THAT WAS LIMITED TO TEN THOUSAND DOLLARS AS PROVIDED IN SECTION 164(B)(6)(B) OR WAS DENIED AS A RESULT OF SECTION 164(B)(6)(A), THERE SHALL BE SUBTRACTED THE TAXES PAID OR ACCRUED IN THAT TAXABLE YEAR BY AN ESTATE OR TRUST THAT THE ESTATE OR TRUST WAS NOT ABLE TO DEDUCT FOR FEDERAL INCOME TAX PURPOSES BECAUSE OF SUCH LIMITATION OR DENIAL, OTHER THAN STATE AND LOCAL SALES TAXES AND INCOME TAXES DESCRIBED IN PARAGRAPH ONE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTEEN OF THIS PART. IN DETERMINING THE MAKEUP OF THE TEN THOUSAND DOLLARS OF DEDUCTION CLAIMED BY THE ESTATE OR TRUST UNDER SECTION 164 OF THE INTERNAL REVENUE CODE, IT SHALL BE PRESUMED THAT THE TEN THOUSAND DOLLARS OF DEDUCTION FIRST COMPRISES THE STATE AND LOCAL SALES TAXES OR INCOME TAXES THE ESTATE OR TRUST ACCRUED OR PAID DURING THE TAXABLE YEAR. (2) FOR ANY TAXABLE YEAR BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN, AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, THERE SHALL BE SUBTRACTED THE MISCELLANEOUS ITEMIZED DEDUCTIONS AS DESCRIBED IN AND LIMITED BY SECTION 67 OF THE INTERNAL REVENUE CODE (BUT EXCLUDING THE DEDUCTIONS DESCRIBED IN SUBSECTION (E) OF SECTION 67), BUT DETERMINED WITHOUT REGARD TO SUBSECTION (G) OF SUCH SECTION. (3) FOR ANY TAXABLE YEAR, THERE SHALL BE ADDED THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT TO SECTION 199A OF THE INTERNAL REVENUE CODE. S. 1509--C 92 A. 2009--C § 3. The opening paragraph of subdivision (b) of section 11-1719 of the administrative code of the city of New York, as amended by chapter 639 of the laws of 1986, is amended to read as follows: The city fiduciary adjustment shall be the net amount of the modifica- tions described in section 11-1712 (including subdivision (d) if the estate or trust is a beneficiary of another estate or trust), [and] in subdivision (c) and paragraphs two and three of subdivision (d) of section 11-1715, AND IN SUBDIVISION (E) OF THIS SECTION, which relate to items of income, gain, loss or deduction of an estate or trust. The net amount of such modifications shall not include: § 4. Section 11-1719 of the administrative code of the city of New York is amended by adding a new subdivision (e) to read as follows: (E) ADDITIONAL MODIFICATIONS. (1) FOR ANY TAXABLE YEAR BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN, AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, TO THE EXTENT THAT THE ESTATE OR TRUST CLAIMED A DEDUCTION FOR TAXES UNDER SECTION 164 OF THE INTERNAL REVENUE CODE THAT WAS LIMITED TO TEN THOUSAND DOLLARS AS PROVIDED IN SECTION 164(B)(6)(B) OR WAS DENIED AS A RESULT OF SECTION 164(B)(6)(A), THERE SHALL BE SUBTRACTED THE TAXES PAID OR ACCRUED IN THAT TAXABLE YEAR BY AN ESTATE OR TRUST THAT THE ESTATE OR TRUST WAS NOT ABLE TO DEDUCT FOR FEDERAL INCOME TAX PURPOSES BECAUSE OF SUCH LIMITATION OR DENIAL, OTHER THAN STATE AND LOCAL SALES TAXES AND INCOME TAXES DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (C) OF SECTION 11-1715 OF THIS SUBCHAPTER. IN DETER- MINING THE MAKEUP OF THE TEN THOUSAND DOLLARS OF DEDUCTION CLAIMED BY THE ESTATE OR TRUST UNDER SECTION 164 OF THE INTERNAL REVENUE CODE, IT SHALL BE PRESUMED THAT THE TEN THOUSAND DOLLARS OF DEDUCTION FIRST COMPRISES THE STATE AND LOCAL SALES TAXES OR INCOME TAXES THE ESTATE OR TRUST ACCRUED OR PAID DURING THE TAXABLE YEAR. (2) FOR ANY TAXABLE YEAR BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN, AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, THERE SHALL BE SUBTRACTED THE MISCELLANEOUS ITEMIZED DEDUCTIONS AS DESCRIBED IN AND LIMITED BY SECTION 67 OF THE INTERNAL REVENUE CODE (BUT EXCLUDING THE DEDUCTIONS DESCRIBED IN SUBSECTION (E) OF SECTION 67), BUT DETERMINED WITHOUT REGARD TO SUBSECTION (G) OF SUCH SECTION. (3) FOR ANY TAXABLE YEAR, THERE SHALL BE ADDED THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT TO SECTION 199A OF THE INTERNAL REVENUE CODE. § 5. This act shall take effect immediately. PART CCC 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-ONE, THE food and drink excluded from the exemption provided by [this paragraph under S. 1509--C 93 A. 2009--C 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, 2019, and shall apply to sales made and uses occurring on and after such date. PART DDD Section 1. Paragraph 1 of subdivision (a) of section 1132 of the tax law, as amended by chapter 255 of the laws of 1998, is amended to read as follows: (1) [Every] EXCEPT AS OTHERWISE PERMITTED IN SUBDIVISION (D) OF SECTION ELEVEN HUNDRED THIRTY-THREE OF THIS PART, EVERY person required to collect the tax shall collect the tax from the customer when collect- ing the price, amusement charge or rent to which it applies. If the customer is given any sales slip, invoice, receipt or other statement or memorandum of the price, amusement charge or rent paid or payable, the tax shall be stated, charged and shown separately on the first of such documents given to him. The tax shall be paid to the person required to collect it as trustee for and on account of the state. § 2. Subdivision (d) of section 1133 of the tax law, as added by chap- ter 93 of the laws of 1965, is amended to read as follows: (d) (1) no person required to collect any tax imposed by this article shall advertise or hold out to the public in any manner, directly or indirectly, that the tax IMPOSED BY THIS ARTICLE is not considered as an element in the price, amusement charge or rent payable by customers. HOWEVER, SUCH PERSON REQUIRED TO COLLECT TAX MAY ADVERTISE, HOLD OUT, OR STATE TO A RETAIL PURCHASER OR TO THE PUBLIC, THAT SUCH PERSON WILL PAY THE TAX IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE ON BEHALF OF A RETAIL PURCHASER, SUBJECT TO THE FOLLOWING CONDITIONS: (I) IN SO ADVERTISING, HOLDING OUT, OR STATING TO A RETAIL PURCHASER OR TO THE PUBLIC, SUCH PERSON REQUIRED TO COLLECT TAX SHALL EXPRESSLY STATE ON EVERY BILL, MEMORANDUM, RECEIPT OR OTHER STATEMENT OF THE PRICE, AMUSEMENT CHARGE OR RENT PAID OR PAYABLE GIVEN TO SUCH PURCHASER, THAT SUCH PERSON WILL PAY THE TAX IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE ON BEHALF OF SUCH PURCHASER, AND SUCH PERSON SHALL NOT INDICATE OR IMPLY THAT THE TRANSACTION IS EXEMPT OR EXCLUDED FROM ANY TAX IMPOSED BY THIS ARTICLE; AND (II) EVERY BILL, MEMORANDUM, RECEIPT OR OTHER STATEMENT OF THE PRICE, AMUSEMENT CHARGE OR RENT PAID OR PAYABLE GIVEN TO SUCH PURCHASER SHALL SEPARATELY STATE THE AMOUNT OF TAX DUE PURSUANT TO SUCH SECTION ELEVEN HUNDRED FIVE AND THAT THE TAX WAS NOT COLLECTED FROM SUCH PURCHASER. SUCH PERSON REQUIRED TO COLLECT TAX SHALL HOLD SUCH TAX AS TRUSTEE FOR AND ON ACCOUNT OF THE STATE; AND (III) A RETAIL PURCHASER, WHO IN GOOD FAITH ACCEPTS FROM A PERSON REQUIRED TO COLLECT ANY TAX IMPOSED BY THIS ARTICLE, A BILL, MEMORANDUM, RECEIPT OR OTHER STATEMENT OF THE PRICE, AMUSEMENT CHARGE OR RENT THAT S. 1509--C 94 A. 2009--C INDICATES THE AMOUNT OF TAX DUE PURSUANT TO SUCH SECTION ELEVEN HUNDRED FIVE AND THAT SUCH PERSON REQUIRED TO COLLECT TAX WILL BE PAYING SUCH TAX ON BEHALF OF SUCH PURCHASER, SHALL NOT BE LIABLE FOR THE TAX IMPOSED BY SUCH SECTION ELEVEN HUNDRED FIVE, OR ANY INTEREST OR PENALTIES THERE- ON; PROVIDED, HOWEVER THAT NOTHING IN THIS SUBDIVISION SHALL EXEMPT SUCH PURCHASER FROM ANY ADDITIONAL TAX DUE PURSUANT TO SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE. § 3. Subdivision (d) of section 1817 of the tax law, as amended by section 30 of subpart I of part V-1 of chapter 57 of the laws of 2009, is amended to read as follows: (d) Any person (1) who willfully fails to charge separately the tax imposed under article twenty-eight of this chapter or to state such tax separately on any bill, statement, memorandum [or], receipt OR OTHER STATEMENT issued or employed by him OR HER upon which the tax is required to be stated separately as provided in subdivision (a) of section eleven hundred thirty-two of this chapter; or (2) who shall refer or cause reference to be made to such tax in a form or manner other than that required by such article twenty-eight, shall be guilty of a misdemeanor. PROVIDED HOWEVER, THAT A PERSON WHO HAS PAID THE TAX ON BEHALF OF A RETAIL PURCHASER AS PROVIDED IN SUBDIVISION (D) OF SECTION ELEVEN HUNDRED THIRTY-THREE OF THIS CHAPTER SHALL NOT BE GUILTY OF A MISDEMEANOR FOR FAILURE TO SEPARATELY CHARGE THE TAX IMPOSED BY SUCH ARTICLE TWENTY-EIGHT. § 4. This act shall take effect immediately. PART EEE Section 1. Subdivisions 3 and 5 of section 171-v of the tax law, as added by section 1 of part P of chapter 59 of the laws of 2013, are amended to read as follows: (3) The department shall provide notice to the taxpayer of his or her inclusion in the license suspension program no later than sixty days prior to the date the department intends to inform the commissioner of motor vehicles of the taxpayer's inclusion. However, no such notice shall be issued to a taxpayer whose wages are being garnished by the department for the payment of past-due tax liabilities or past-due child support or combined child and spousal support arrears. Notice shall be provided by first class mail to the taxpayer's last known address as such address appears in the electronic systems or records of the depart- ment. Such notice shall include: (a) a clear statement of the past-due tax liabilities along with a statement that the department shall provide to the department of motor vehicles the taxpayer's name, social security number and any other iden- tifying information necessary for the purpose of suspending his or her driver's license pursuant to this section and subdivision four-f of section five hundred ten of the vehicle and traffic law sixty days after the mailing or sending of such notice to the taxpayer; (b) a statement that the taxpayer may avoid suspension of his or her license by fully satisfying the past-due tax liabilities [or], by making payment arrangements satisfactory to the commissioner, [and information as to how] OR BY DEMONSTRATING ANY OF THE GROUNDS FOR CHALLENGE SET FORTH IN SUBDIVISION FIVE OF THIS SECTION. SUCH STATEMENT SHALL INCLUDE INFORMATION REGARDING PROGRAMS THROUGH WHICH the taxpayer can pay the past-due tax liabilities to the department, enter into a payment arrangement or request additional information; S. 1509--C 95 A. 2009--C (c) a statement that the taxpayer's right to protest the notice is limited to raising issues set forth in subdivision five of this section; (d) a statement that the suspension of the taxpayer's driver's license shall continue until the past-due tax liabilities are fully paid or the taxpayer makes payment arrangements satisfactory to the commissioner; and (e) any other information that the commissioner deems necessary. (5) Notwithstanding any other provision of law, and except as specif- ically provided herein, the taxpayer shall have no right to commence a court action or proceeding or to any other legal recourse against the department or the department of motor vehicles regarding a notice issued by the department pursuant to this section and the referral by the department of any taxpayer with past-due tax liabilities to the depart- ment of motor vehicles pursuant to this section for the purpose of suspending the taxpayer's driver's license. A taxpayer may only chal- lenge such suspension or referral on the grounds that (i) the individual to whom the notice was provided is not the taxpayer at issue; (ii) the past-due tax liabilities were satisfied; (iii) the taxpayer's wages are being garnished by the department for the payment of the past-due tax liabilities at issue or for past-due child support or combined child and spousal support arrears; (iv) the taxpayer's wages are being garnished for the payment of past-due child support or combined child and spousal support arrears pursuant to an income execution issued pursuant to section five thousand two hundred forty-one of the civil practice law and rules; (v) the taxpayer's driver's license is a commercial driver's license as defined in section five hundred one-a of the vehicle and traffic law; [or] (vi) the department incorrectly found that the taxpay- er has failed to comply with the terms of a payment arrangement made with the commissioner more than once within a twelve month period for the purposes of subdivision three of this section; (VII) THE TAXPAYER RECEIVES PUBLIC ASSISTANCE OR SUPPLEMENTAL SECURITY INCOME; OR (VIII) THE TAXPAYER DEMONSTRATES THAT SUSPENSION OF THE TAXPAYER'S DRIVER'S LICENSE WILL CAUSE THE TAXPAYER UNDUE ECONOMIC HARDSHIP. However, nothing in this subdivision is intended to limit a taxpayer from seeking relief PURSUANT TO AN OFFER IN COMPROMISE PURSUANT TO SUBDIVISION FIFTEENTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS ARTICLE OR from joint and several liability pursuant to section six hundred fifty-four of this chapter, to the extent that he or she is eligible pursuant to [that subdivision] SUCH SECTION, or establishing to the department that the enforcement of the underlying tax liabilities has been stayed by the filing of a petition pursuant to the Bankruptcy Code of 1978 (Title Eleven of the United States Code). § 2. The commissioner of taxation and finance is authorized and directed to promulgate any rules and regulations necessary to implement the provisions of this act in accordance with the provisions of the state administrative procedure act. § 3. This act shall take effect on the ninetieth day after it shall have become a law. PART FFF Section 1. Paragraph 44 of subdivision (a) of section 1115 of the tax law, as added by section 1 of part WW of chapter 59 of the laws of 2017, is amended to read as follows: (44) monuments as that term is defined in [subdivision] PARAGRAPH (f) of section fifteen hundred two of the not-for-profit corporation law, S. 1509--C 96 A. 2009--C AND TANGIBLE PERSONAL PROPERTY THAT WILL BECOME A PHYSICAL COMPONENT PART OF SUCH MONUMENTS. § 2. This act shall take effect on June 1, 2019 and shall apply to sales made on and after such date. PART GGG Section 1. Section 1 of subpart K of part II of a chapter of the laws of 2019 amending the public officers law relating to prohibiting disclo- sure of law enforcement booking information and photographs, as proposed in legislative bill numbers S.1505-C and A.2005-C, is amended to read as follows: Section 1. Legislative findings. The legislature finds that law enforcement [booking information and] photographs, otherwise known as "mugshots," are published on the internet and other public platforms with impunity. An individual's mugshot is displayed publicly even if the arrest does not lead to a conviction, or the conviction is later expunged, sealed, or pardoned. This practice presents an unacceptable invasion of the individual's personal privacy. While there is a well-es- tablished Constitutional right for the press and the public to publish government records which are in the public domain or that have been lawfully accessed, arrest and booking information have not been found by courts to have the same public right of access as criminal court proceedings or court filings. Therefore, each state can set access to this information through its Freedom of Information laws. The federal government has already limited access to booking photographs through privacy formulations in its Freedom of Information Act, and the legisla- ture hereby declares that New York will follow the same principle to protect its residents from this unwarranted invasion of personal priva- cy, absent a specific law enforcement purpose, such as disclosure of a photograph to alert victims or witnesses to come forward to aid in a criminal investigation. § 2. Paragraph (b) of subdivision 2 of section 89 of the public offi- cers law, as amended by section 2 of subpart K of part II of a chapter of the laws of 2019 amending the public officers law relating to prohib- iting disclosure of law enforcement booking information and photographs, as proposed in legislative bill numbers S.1505-C and A.2005-C, is amended to read as follows: (b) An unwarranted invasion of personal privacy includes, but shall not be limited to: i. disclosure of employment, medical or credit histories or personal references of applicants for employment; ii. disclosure of items involving the medical or personal records of a client or patient in a medical facility; iii. sale or release of lists of names and addresses if such lists would be used for solicitation or fund-raising purposes; iv. disclosure of information of a personal nature when disclosure would result in economic or personal hardship to the subject party and such information is not relevant to the work of the agency requesting or maintaining it; v. disclosure of information of a personal nature reported in confi- dence to an agency and not relevant to the ordinary work of such agency; vi. information of a personal nature contained in a workers' compen- sation record, except as provided by section one hundred ten-a of the workers' compensation law; S. 1509--C 97 A. 2009--C vii. disclosure of electronic contact information, such as an e-mail address or a social network username, that has been collected from a taxpayer under section one hundred four of the real property tax law; or viii. disclosure of law enforcement [booking information about an individual, including] ARREST OR booking photographs OF AN INDIVIDUAL, unless public release of such [information] PHOTOGRAPHS will serve a specific law enforcement purpose and disclosure is not precluded by any state or federal laws. § 3. This act shall take effect on the same date and in the same manner as subpart K of part II of a chapter of the laws of 2019 amending the public officers law relating to prohibiting disclosure of law enforcement booking information and photographs, as proposed in legisla- tive bill numbers S.1505-C and A.2005-C, takes effect. PART HHH Section 1. Section 1 of part TT of a chapter of the laws of 2019 relating to the closure of correctional facilities, as proposed in legislative bill numbers S.1505-C and A.2005-C, is amended to read as follows: Section 1. Notwithstanding the provisions of sections 79-a and 79-b of the correction law, the governor is authorized to close [two] UP TO THREE correctional facilities of the department of corrections and community supervision, in state fiscal year 2019-2020, as he determines to be necessary for the cost-effective and efficient operation of the correctional system, provided that the governor provides at least 90 days notice prior to any such closures to the temporary president of the senate and the speaker of the assembly. § 2. This act shall take effect on the same date and in the same manner as part TT of a chapter of the laws of 2019 relating to the closure of correctional facilities, as proposed in legislative bill numbers S.1505-C and A.2005-C, takes effect provided, however, that the amendments to section 1 of part TT of such chapter made by section one of this act shall not affect the repeal of such section and shall be deemed repealed therewith. PART III Section 1. Subparagraph (iii) of paragraph c of subdivision 2 of section 140 of the transportation law, as added by chapter 173 of the laws of 1990, item (b) as amended by chapter 604 of the laws of 2000, the second undesignated paragraph of item (b) as amended by chapter 260 of the laws of 2001, and such paragraph as relettered by section 6 of part G of chapter 58 of the laws of 2012, is amended to read as follows: (iii) (a) Except as provided in subparagraph (iv) of this paragraph, any person, corporation, company, association, joint stock association, partnership, person or any officer or agent thereof, found guilty of violating any of the department's safety rules or regulations shall be subject to a fine of not less than [one] TWO hundred fifty dollars nor more than [five hundred] ONE THOUSAND dollars for the first offense, and upon being found guilty of a second or subsequent offense committed within eighteen months by a fine of not less than [five hundred] ONE THOUSAND dollars nor more than one thousand FIVE HUNDRED dollars, or by imprisonment for not more than thirty days or by both such fine and imprisonment. S. 1509--C 98 A. 2009--C (b) Any person, corporation, company, association, joint stock associ- ation, partnership, person or any officer or agent thereof, found guilty of violating any of the department's safety rules or regulations involv- ing an out-of-service defect relating to brake systems, steering compo- nents and/or coupling devices shall be subject to a fine of not less than [three hundred fifty] FIVE HUNDRED dollars nor more than one thou- sand TWO HUNDRED FIFTY dollars for the first offense, and upon being found guilty of a second or subsequent offense committed within eighteen months by a fine of not less than one thousand TWO HUNDRED FIFTY dollars nor more than [two] THREE thousand [five hundred] dollars, or by impri- sonment for not more than sixty days or by both such fine and imprison- ment; provided, however, that if any such person, corporation, company, association, joint stock association, partnership, person or any officer or agent thereof is operating a farm vehicle registered pursuant to subdivision thirteen of section four hundred one of the vehicle and traffic law in conformance with the terms of such registration, and if the violation as set forth in the summons is corrected not later than one-half hour after sunset on the third full business day after the issuance of the summons and proof of such correction as set forth in item (b) of subparagraph (iv) of this paragraph is submitted to the court, the penalty for a first violation involving brake systems shall be a fine of [one] TWO hundred fifty dollars, the penalty for a first violation involving steering components and/or coupling devices shall be a fine of [one] TWO hundred dollars and the penalty for a first violation involving any other out-of-service defect shall be a fine of ONE HUNDRED fifty dollars. A motor vehicle shall be deemed to be out-of- service only until such time as the applicable out-of-service defect is repaired or adjusted. Any person, corporation, company, association, joint stock associ- ation, partnership, person or any officer or agent thereof, found guilty of violating any of the department's safety rules or regulations involv- ing an out-of-service defect relating to load securement, shall be subject to a fine of not less than [five hundred] ONE THOUSAND dollars nor more than one thousand [two] FIVE hundred dollars for the first offense, and upon being found guilty of a second or subsequent offense committed within eighteen months by a fine of not less than one thousand FIVE HUNDRED dollars nor more than [two] THREE thousand [five hundred] dollars, or by imprisonment for not more than sixty days or by both such fine and imprisonment; provided, however, that if any such person, corporation, company, association, joint stock association, partnership, person or any officer or agent thereof is operating a farm vehicle registered pursuant to subdivision thirteen of section four hundred one of the vehicle and traffic law in conformance with the terms of such registration, the penalty for such violation shall be a fine of [two] FIVE hundred [fifty] dollars. A motor vehicle shall be deemed to be out-of-service only until such time as the applicable out-of-service defect is repaired or adjusted. § 2. Subparagraphs (v) and (vii) of paragraph c of subdivision 2 of section 140 of the transportation law, subparagraph (v) as amended by section 10 of part K of chapter 59 of the laws of 2009 and such para- graph as relettered by section 6 of part G of chapter 58 of the laws of 2012, subparagraph (vii) as added by section 10 of part I of chapter 58 of the laws of 2015, are amended to read as follows: (v) (a) A driver who is convicted of violating an out-of-service order as provided for in the department's safety rules and regulations shall be guilty of a traffic infraction which shall be punishable by a fine of S. 1509--C 99 A. 2009--C not less than [two] THREE thousand [five hundred] dollars nor more than [four] FIVE thousand dollars upon the first offense, and upon being found guilty of a second or subsequent offense within eighteen months by a fine of not less than [five] SIX thousand dollars nor more than [six] SEVEN thousand dollars. (b) No person, corporation, limited liability company or business entity, joint stock association, partnership, or any officer or agent thereof, shall knowingly allow, require, permit or authorize any person to operate a commercial motor vehicle as defined by section five hundred one-a of the vehicle and traffic law during any period in which such person, such commercial motor vehicle, or such motor carrier operation has been placed out of service as provided for in the department's safe- ty rules and regulations and shall be subject to a fine of not less than [two] THREE thousand seven hundred fifty dollars and not more than [twenty-five] THIRTY thousand dollars for any violation thereof. (c) No person, corporation, limited liability company or business entity, joint stock association, partnership, or any officer or agent thereof, shall knowingly allow, require, permit or authorize any person to operate a commercial motor vehicle as defined in section five hundred one-a of the vehicle and traffic law in violation of section eleven hundred seventy-one or eleven hundred seventy-six of the vehicle and traffic law and, upon conviction thereof, shall be subject to a fine of not more than [ten] TWELVE thousand dollars for any violation thereof. (vii) No person, corporation, limited liability company or business entity, joint stock association, partnership, or any officer or agent thereof, shall knowingly allow, require, permit or authorize any person to operate a commercial motor vehicle, as defined in section five hundred one-a of the vehicle and traffic law, during any period in which the operator: (a) does not have a valid commercial learner's permit or commercial driver's license; or (b) does not have a commercial learner's permit or commercial driver's license with the proper class or endorsements; or (c) violates any restriction on such operator's commercial learner's permit or commercial driver's license; or (d) has a commercial learner's permit or commercial driver's license that is suspended, revoked or cancelled, or such operator has been otherwise disqualified by the commissioner of motor vehicles; or (e) has more than one commercial learner's permit or commercial driv- er's license. A violation of this subparagraph shall be punishable by a fine of not less than two hundred FIFTY dollars nor more than one thousand TWO HUNDRED FIFTY dollars. § 3. Subdivision 9 of section 140 of the transportation law, as amended by chapter 349 of the laws of 1993, is amended to read as follows: 9. A. If, after notice and opportunity to be heard, the commissioner shall find that any person is operating in violation of the provisions of this section, the commissioner may penalize such person pursuant to subdivision three of section one hundred forty-five of this article. The commissioner may also notify the commissioner of motor vehicles that such person is operating in violation of this section and the commis- sioner of motor vehicles shall thereupon suspend the registration of all motor vehicles owned or operated by such person, with the exception of private passenger automobiles, until such time as the commissioner may give notice that the violation has been satisfactorily adjusted, AND THE S. 1509--C 100 A. 2009--C COMMISSIONER OF MOTOR VEHICLES MAY DIRECT ANY POLICE OFFICER TO SECURE POSSESSION OF THE NUMBER PLATES OF SUCH MOTOR VEHICLES AND TO RETURN THE SAME TO THE COMMISSIONER OF MOTOR VEHICLES. FAILURE OF THE HOLDER OR OF ANY PERSON POSSESSING SUCH NUMBER PLATES TO DELIVER SUCH NUMBER PLATES TO ANY POLICE OFFICER WHO REQUESTS THE SAME PURSUANT TO THIS SUBDIVISION SHALL CONSTITUTE A MISDEMEANOR. The commissioner of motor vehicles shall have the authority to deny a registration or renewal application to any other person for the same vehicle and may deny a registration or renewal application for any other motor vehicle registered in the name of the applicant where it has been determined that such registrant's intent has been to evade the purposes of this subdivision and where the commission- er of motor vehicles has reasonable grounds to believe that such regis- tration or renewal will have the effect of defeating the purposes of this subdivision. The procedure on any such suspension shall be the same as in the case of a suspension under the vehicle and traffic law. Opera- tion of any motor vehicle while under suspension as herein provided shall constitute a class A misdemeanor. A PERSON WHO OPERATES A MOTOR VEHICLE WHILE SUCH VEHICLE IS UNDER SUSPENSION AS PROVIDED IN THIS SUBDIVISION IN A MANNER THAT CAUSES THE DEATH OF ANOTHER PERSON, KNOWING THAT THE OPERATION OF SUCH VEHICLE IS IN VIOLATION OF THIS SUBDIVISION, SHALL BE GUILTY OF A CLASS E FELONY. B. WHENEVER AN ALTERED MOTOR VEHICLE COMMONLY REFERRED TO AS A "STRETCH LIMOUSINE" HAS FAILED AN INSPECTION AND BEEN PLACED OUT-OF-SER- VICE, THE COMMISSIONER MAY DIRECT A POLICE OFFICER OR HIS OR HER AGENT TO IMMEDIATELY SECURE POSSESSION OF THE NUMBER PLATES OF SUCH VEHICLE AND RETURN THE SAME TO THE COMMISSIONER OF MOTOR VEHICLES. THE COMMIS- SIONER SHALL NOTIFY THE COMMISSIONER OF MOTOR VEHICLES TO THAT EFFECT, AND THE COMMISSIONER OF MOTOR VEHICLES SHALL THEREUPON SUSPEND THE REGISTRATION OF SUCH VEHICLE UNTIL SUCH TIME AS THE COMMISSIONER GIVES NOTICE THAT THE OUT-OF-SERVICE DEFECT HAS BEEN SATISFACTORILY ADJUSTED. PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL GIVE NOTICE AND AN OPPOR- TUNITY TO BE HEARD WITHIN NOT MORE THAN THIRTY DAYS OF THE SUSPENSION. FAILURE OF THE HOLDER OR OF ANY PERSON POSSESSING SUCH PLATES TO DELIVER TO THE COMMISSIONER OR HIS OR HER AGENT WHO REQUESTS THE SAME PURSUANT TO THIS PARAGRAPH SHALL BE A MISDEMEANOR. THE COMMISSIONER OF MOTOR VEHICLES SHALL HAVE THE AUTHORITY TO DENY A REGISTRATION OR RENEWAL APPLICATION TO ANY OTHER PERSON FOR THE SAME VEHICLE WHERE IT HAS BEEN DETERMINED THAT SUCH REGISTRANT'S INTENT HAS BEEN TO EVADE THE PURPOSES OF THIS PARAGRAPH AND WHERE THE COMMISSIONER OF MOTOR VEHICLES HAS REASONABLE GROUNDS TO BELIEVE THAT SUCH REGISTRATION OR RENEWAL WILL HAVE THE EFFECT OF DEFEATING THE PURPOSES OF THIS PARAGRAPH. THE PROCE- DURE ON ANY SUCH SUSPENSION SHALL BE THE SAME AS IN THE CASE OF A SUSPENSION UNDER THE VEHICLE AND TRAFFIC LAW. OPERATION OF SUCH MOTOR VEHICLE WHILE UNDER SUSPENSION AS PROVIDED IN THIS SUBDIVISION SHALL CONSTITUTE A CLASS A MISDEMEANOR. § 4. Subdivision 3 of section 145 of the transportation law, as added by chapter 635 of the laws of 1983, is amended to read as follows: 3. In addition to, or in lieu of, any sanctions set forth in this section, the commissioner may, after a hearing, impose a penalty not to exceed a maximum of [five] TEN thousand dollars in any one proceeding upon any person if the commissioner finds that such person or officer, agent or employee thereof has failed to comply with the requirements of this chapter or any rule, regulation or order of the commissioner promulgated thereunder. If such penalty is not paid within four months, the amount thereof may be entered as a judgment in the office of the clerk of the county of Albany and in any other county in which the S. 1509--C 101 A. 2009--C person resides, has a place of business or through which it operates. Thereafter, if said judgment has not been satisfied within ninety days, any certificate or permit held by any such person may be revoked upon notice but without a further hearing. Provided, however, that if a person shall apply for a rehearing of the determination of the penalty pursuant to the provisions of section eighty-nine of this chapter, judg- ment shall not be entered until a determination has been made on the application for a rehearing. Further provided however, that if after a rehearing a penalty is imposed and such penalty is not paid within four months of the date of service of the rehearing decision, the amount of such penalty may be entered as a judgment in the office of the clerk of the county of Albany and in any other county in which the person resides, has a place of business or through which it operates. Thereaft- er, if said judgment has not been satisfied within ninety days, any certificate or permit held by any such person may be revoked upon notice but without a further hearing. § 5. Subdivision 4 of section 145 of the transportation law, as amended by chapter 349 of the laws of 1993, is amended to read as follows: 4. If after notice and opportunity to be heard, the commissioner shall find that any person or persons is or are providing transportation subject to regulation under this chapter without having any certificate or permit, or is or are holding themselves out to the public by adver- tising or any other means to provide such transportation without having any certificate or permit or approval from a city having jurisdiction pursuant to section eighty of this chapter, the commissioner may notify the commissioner of motor vehicles to that effect and the commissioner of motor vehicles shall thereupon suspend the registration or registra- tions of all motor vehicles owned or operated by such person or persons except private passenger automobiles until such time as the commissioner of transportation may give notice that the violation has been satisfac- torily adjusted, AND THE COMMISSIONER OF MOTOR VEHICLES MAY DIRECT ANY POLICE OFFICER TO SECURE POSSESSION OF THE NUMBER PLATES OF SUCH MOTOR VEHICLES AND TO RETURN THE SAME TO THE COMMISSIONER OF MOTOR VEHICLES. FAILURE OF THE HOLDER OR OF ANY PERSON POSSESSING SUCH NUMBER PLATES TO DELIVER SUCH NUMBER PLATES TO ANY POLICE OFFICER WHO REQUESTS THE SAME PURSUANT TO THIS SUBDIVISION SHALL CONSTITUTE A MISDEMEANOR. The commis- sioner of motor vehicles shall have the authority to deny a registration or renewal application to any other person for the same vehicle and may deny a registration or renewal application for any other motor vehicle registered in the name of the applicant where it has been determined that such registrant's intent has been to evade the purposes of this subdivision and where the commissioner of motor vehicles has reasonable grounds to believe that such registration or renewal will have the effect of defeating the purposes of this subdivision. The procedure on any such suspension shall be the same as in the case of a suspension under the vehicle and traffic law. Operation of any motor vehicle while under suspension as herein provided shall constitute a class A misdemea- nor. A PERSON WHO OPERATES A MOTOR VEHICLE WHILE SUCH VEHICLE IS UNDER SUSPENSION AS PROVIDED IN THIS SUBDIVISION IN A MANNER THAT CAUSES THE DEATH OF ANOTHER PERSON, KNOWING THAT THE OPERATION OF SUCH VEHICLE IS IN VIOLATION OF THIS SUBDIVISION, SHALL BE GUILTY OF A CLASS E FELONY. § 6. Subdivision 5 of section 145 of the transportation law, as added by chapter 635 of the laws of 1983, is amended to read as follows: 5. Any person, whether carrier, passenger, shipper, consignee, or broker, or any officer, employee, agent or representative thereof, who S. 1509--C 102 A. 2009--C shall knowingly offer, grant or give or solicit, accept, or receive any rebate, concession or discrimination in violation of this chapter, or who by means of any false statement or representation, or by the use of any false or fictitious bill, bill of lading, receipt, voucher, roll, account, claim, certificate, affidavit, deposition, lease or bill of sale, or by any other means or device, shall knowingly and willfully assist, suffer or permit any person or persons to obtain transportation of property or passengers subject to this chapter for less than the applicable rate, toll or charge, or who, with respect to the transporta- tion of household goods, shall knowingly or willfully misrepresent the applicable rate for transportation or the weight of a shipment or the cost of transportation to the shipper, or who shall knowingly and will- fully by any such means or otherwise fraudulently seek to evade or defeat regulation as provided for in this chapter, shall be guilty of a misdemeanor and upon conviction thereof be fined not more than [five hundred] ONE THOUSAND dollars for the first offense and not more than two thousand FIVE HUNDRED dollars for any subsequent offense. § 7. Subdivision 6 of section 145 of the transportation law, as amended by chapter 444 of the laws of 1992, is amended to read as follows: 6. Any person who shall provide transportation for compensation within the state, or hold himself or herself out to the public by advertising or any other means to provide such transportation, when such transporta- tion requires either the permission or approval of the commissioner, or the permission, approval or franchise of any city having regulatory jurisdiction over such transportation and who does not possess a valid permit, certificate or approval for such transportation, from the commissioner or from such city, shall be guilty of a traffic infraction punishable by a fine of not less than [five hundred] ONE THOUSAND DOLLARS and not more than one thousand FIVE HUNDRED dollars for the first offense. A violation of this subdivision by a person who has previously been convicted of such offense within five years of the violation shall be a misdemeanor and shall be punishable by a fine of not less than [one] TWO thousand DOLLARS and not more than [twenty-five hundred] FIVE THOUSAND dollars, or by imprisonment for not more than sixty days, or by both such fine and imprisonment. Upon conviction as a second or subsequent offender as described herein the court may order forfeiture of any right, title or interest held by the defendant in any motor vehicle used in the commission of such offense pursuant to the provisions of subdivision seven of this section. In addition to, or in lieu of, any sanction set forth in this subdivision, the commissioner may, after a hearing, impose a penalty equal to the gain or profit derived from transportation services conducted in violation of this subdivision. Any person holding regulatory authority or a franchise from either the commissioner or any city having regulatory jurisdiction over such transportation, or any public transportation authority created pursuant to title nine, eleven, eleven-A, eleven-B, eleven-C or eleven-D of article five of the public authorities law, who is being adversely affected by a person providing transportation without having the neces- sary regulatory authority or franchise from the commissioner or any such city, may bring suit in his, her or its own behalf to restrain such person and recover damages resulting from the actions of such person. § 8. Section 375 of the vehicle and traffic law is amended by adding a new subdivision 53 to read as follows: 53. FEDERAL MOTOR VEHICLE SAFETY STANDARD CERTIFICATION LABEL. NO PERSON SHALL, WITH INTENT TO DEFRAUD, KNOWINGLY REMOVE, DEFACE, DESTROY, S. 1509--C 103 A. 2009--C COVER, ALTER, OR OTHERWISE CHANGE THE FORM OR APPEARANCE OF A FEDERAL MOTOR VEHICLE SAFETY STANDARD CERTIFICATION LABEL, ISSUED IN ACCORDANCE WITH SECTION 30115 OF TITLE 49 OF THE UNITED STATES CODE AND PART 567 OF TITLE 49 OF THE CODE OF FEDERAL REGULATIONS, ON AN ALTERED MOTOR VEHI- CLE. NO PERSON SHALL, WITH INTENT TO DEFRAUD, AFFIX TO AN ALTERED MOTOR VEHICLE A FEDERAL MOTOR VEHICLE SAFETY STANDARD CERTIFICATION LABEL EXCEPT IN ACCORDANCE WITH SECTION 30115 OF TITLE 49 OF THE UNITED STATES CODE AND PART 567 OF TITLE 49 OF THE CODE OF FEDERAL REGULATIONS. A VIOLATION OF THIS SUBDIVISION SHALL BE PUNISHABLE AS A MISDEMEANOR. § 9. Section 401 of the vehicle and traffic law is amended by adding two new subdivisions 22 and 23 to read as follows: 22. THE COMMISSIONER SHALL NOT REGISTER ANY ALTERED MOTOR VEHICLE THAT FAILS TO COMPLY, AS DEMONSTRATED TO THE SATISFACTION OF THE COMMISSION- ER, WITH THE CERTIFICATION REQUIREMENTS ESTABLISHED BY PART 567 OF TITLE 49 OF THE CODE OF FEDERAL REGULATIONS FOR ALTERED VEHICLES. 23. THE COMMISSIONER SHALL REVOKE THE REGISTRATION OF ANY ALTERED MOTOR VEHICLE WHICH FAILS TO COMPLY WITH THE CERTIFICATION REQUIREMENTS OF PART 567 OF TITLE 49 OF THE CODE OF FEDERAL REGULATIONS, AS DETER- MINED BY THE COMMISSIONER, AND REFUND TO OR CREDIT THE ACCOUNT OF ANY PERSON WHO PAID A REGISTRATION FEE FOR AN ALTERED MOTOR VEHICLE, THE PRO RATA UNUSED PORTION OF SUCH REGISTRATION FEE. § 10. Subdivision (e) of section 303 of the vehicle and traffic law, as amended by chapter 605 of the laws of 1989, the opening paragraph as amended by chapter 608 of the laws of 1993, is amended to read as follows: (e) 1. A license to operate an official inspection station or a certificate to inspect vehicles may be suspended or revoked or renewal thereof may be refused by the commissioner or any person duly deputized for one or more of the following causes: [1.] (I) Failure to conduct inspections in conformance with the provisions of this article and the rules and regulations promulgated thereunder or improper issuance of certificates of inspections. [2.] (II) Conviction of a crime involving fraud, theft, perjury or bribery or other cause which would permit disqualification from receiv- ing a license or a certificate to inspect vehicles upon the original application. [3.] (III) Fraud, deceit or misrepresentation in securing the license or a certificate to inspect vehicles or in the conduct of licensed or certified activity. [4.] (IV) Excessive charges for conducting inspections and for making adjustments, corrections or repairs required by such inspections. [5.] (V) Violation of any provision of this article or any rule or regulation promulgated thereunder. 2. PROVIDED, HOWEVER A LICENSE TO OPERATE AN OFFICIAL INSPECTION STATION OR A CERTIFICATE TO INSPECT VEHICLES SHALL BE SUSPENDED OR REVOKED OR RENEWAL THEREOF SHALL BE REFUSED BY THE COMMISSIONER OR ANY PERSON DULY DEPUTIZED, UPON A THIRD OR SUBSEQUENT VIOLATION COMMITTED WITHIN A PERIOD OF EIGHTEEN MONTHS OF ANY RULE OR REGULATION OF THE COMMISSIONER REQUIRING AN INSPECTION STATION TO REFUSE TO PERFORM AN INSPECTION AS SET FORTH IN PARAGRAPH TWO OF SUBDIVISION (F) OF SECTION 79.20 OF TITLE FIFTEEN OF THE CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK. IF THE COMMISSIONER OR ANY PERSON DULY DEPUTIZED ORDERS PENALTIES TO BE PAID PURSUANT TO SUBDIVISION (H) OF THIS SECTION, SUCH PENALTIES SHALL BE IN ADDITION TO, BUT NOT IN LIEU OF, A SUSPENSION, REVOCATION, OR RENEWAL THEREOF IMPOSED PURSUANT TO THIS PARAGRAPH. S. 1509--C 104 A. 2009--C § 11. Subdivision (h) of section 303 of the vehicle and traffic law, as amended by section 1 of part OO of chapter 59 of the laws of 2009, is amended to read as follows: (h) The commissioner, or any person duly deputized, in addition to or in lieu of revoking or suspending a license to operate an official inspection station or a certificate to inspect vehicles, may by order require the licensee or certified inspector to pay to the people of this state a penalty for a first violation a sum not exceeding [seven hundred and fifty] ONE THOUSAND dollars for each violation found to have been committed; and for a second or subsequent violation not arising out of the same incident both of which were committed within a period of thirty months, a sum of not more than one thousand FIVE HUNDRED dollars for each violation found to have been committed; provided, however, the penalty for each and any violation of SUBPARAGRAPH (III) OF paragraph [three] ONE of subdivision (e) of this section found to have been committed shall be no less than [three hundred and fifty] FIVE HUNDRED dollars and no more than one thousand FIVE HUNDRED dollars, AND PROVIDED FURTHER, HOWEVER, THE PENALTY FOR A VIOLATION FOUND TO HAVE BEEN COMMIT- TED OF ANY RULE OR REGULATION OF THE COMMISSIONER REQUIRING AN INSPECTION STATION TO REFUSE TO PERFORM AN INSPECTION AS SET FORTH IN PARAGRAPH TWO OF SUBDIVISION (F) OF SECTION 79.20 OF TITLE FIFTEEN OF THE CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK SHALL BE A FINE OF NOT LESS THAN TWO HUNDRED FIFTY DOLLARS NOR MORE THAN ONE THOU- SAND DOLLARS FOR A FIRST VIOLATION, AND A FINE OF NOT LESS THAN FIVE HUNDRED DOLLARS NOR MORE THAN ONE THOUSAND FIVE HUNDRED DOLLARS FOR A SECOND OR SUBSEQUENT SUCH VIOLATION NOT ARISING OUT OF THE SAME INCIDENT BOTH OF WHICH WERE COMMITTED WITHIN A PERIOD OF EIGHTEEN MONTHS, and upon the failure of such licensee to pay such penalty within twenty days after the mailing of such order, postage prepaid, registered or certi- fied, and addressed to the last known place of business of such licensee or certified inspector, unless such order is stayed by a court of compe- tent jurisdiction or in accordance with the provisions of [Article] ARTICLE three-A of this chapter, the commissioner may revoke the license of such licensee or the certificate of such certified inspector or may suspend the same for such period as may be determined. Civil penalties assessed under this subdivision shall be paid to the commissioner for deposit into the state treasury, and unpaid civil penalties may be recovered by the commissioner in a civil action in the name of the commissioner. In addition, as an alternative to such civil action and provided that no proceeding for judicial review shall then be pending and the time for initiation of such proceeding shall have expired, the commissioner may file with the county clerk of the county in which the registrant is located or the certified inspector resides a final order of the commissioner containing the amount of the penalty assessed. The filing of such final order shall have the full force and effect of a judgment duly docketed in the office of such clerk and may be enforced in the same manner and with the same effect as that provided by law in respect to executions issued against property upon judgments of a court of record. § 12. The vehicle and traffic law is amended by adding a new section 308-a to read as follows: § 308-A. MANDATORY REPORTING. IF ANY MOTOR VEHICLE IS PRESENTED FOR INSPECTION AT A LICENSED OFFICIAL INSPECTION STATION, AND SUCH VEHICLE HAS BEEN ALTERED, A VEHICLE COMMONLY REFERRED TO AS A "STRETCH LIMOU- SINE", SO AS TO ADD SEATING CAPACITY BEYOND THAT PROVIDED BY THE ORIGINAL MANUFACTURER BY WAY OF AN EXTENDED CHASSIS, LENGTHENED WHEEL S. 1509--C 105 A. 2009--C BASE, OR AN ELONGATED SEATING AREA, AND IN THE CASE OF A TRUCK, HAS BEEN MODIFIED TO TRANSPORT PASSENGERS, SUCH LICENSED OFFICIAL INSPECTION STATION SHALL REFUSE INSPECTION FOR SUCH VEHICLE AND PROMPTLY REPORT SUCH VEHICLE TO THE COMMISSIONER IN A FORM AND MANNER PRESCRIBED BY SUCH COMMISSIONER. PROVIDED, HOWEVER, THAT THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY ALTERED MOTOR VEHICLE FOR WHICH THE DEPARTMENT OF TRANSPORTATION HAS ISSUED AN EXEMPTION LETTER PURSUANT TO PARAGRAPH THREE OF SUBDIVISION (F) OF PART 79.20 OF TITLE FIFTEEN OF THE CODES, RULES, AND REGULATIONS OF THE STATE OF NEW YORK AND THAT IS IN COMPLI- ANCE WITH PART 567 OF TITLE FORTY-NINE OF THE CODE OF FEDERAL REGU- LATIONS. § 13. Paragraph (a) of subdivision 1 of section 370 of the vehicle and traffic law, as amended by chapter 305 of the laws of 1995, is amended to read as follows: (a) For damages for and incident to death or injuries to persons: For each motorcycle and for each motor vehicle ENGAGED IN THE BUSINESS OF CARRYING OR TRANSPORTING PASSENGERS FOR HIRE, having a seating capacity of not more than seven passengers, a bond or insurance policy with a minimum liability of twenty-five thousand dollars and a maximum liabil- ity of fifty thousand dollars for bodily injury, and a minimum liability of fifty thousand dollars and a maximum liability of one hundred thou- sand dollars for death; for each motor vehicle ENGAGED IN THE BUSINESS OF CARRYING OR TRANSPORTING PASSENGERS FOR HIRE, having a seating capac- ity of not less than eight [nor more than twelve] passengers, a bond or insurance policy with a [minimum liability of twenty-five thousand dollars and a maximum liability of eighty thousand dollars] COMBINED SINGLE LIMIT OF AT LEAST ONE MILLION FIVE HUNDRED THOUSAND DOLLARS for bodily injury[,] and [a minimum liability of fifty thousand dollars and a maximum liability of one hundred fifty thousand dollars for] death[; for each motor vehicle having a seating capacity of not less than thir- teen nor more than twenty passengers, a bond or insurance policy with a minimum liability of twenty-five thousand dollars and a maximum liabil- ity of one hundred twenty thousand dollars for bodily injury and a mini- mum liability of fifty thousand dollars and a maximum liability of one hundred fifty thousand dollars for death; for each motor vehicle having a seating capacity of not less than twenty-one nor more than thirty passengers, a bond or insurance policy with a minimum liability of twen- ty-five thousand dollars and a maximum liability of one hundred sixty thousand dollars for bodily injury and a minimum liability of fifty thousand dollars and a maximum liability of two hundred thousand dollars for death; for each motor vehicle having a seating capacity of more than thirty passengers, a bond or insurance policy with a minimum liability of twenty-five thousand dollars and a maximum liability of two hundred thousand dollars for bodily injury and a minimum liability of fifty thousand dollars and a maximum liability of two hundred fifty thousand dollars for death]; § 14. Section 1161 of the vehicle and traffic law is amended by adding a new subdivision c to read as follows: C. NO ALTERED MOTOR VEHICLE COMMONLY REFERRED TO AS A "STRETCH LIMOU- SINE" HAVING A SEATING CAPACITY OF TEN OR MORE PASSENGERS INCLUDING THE DRIVER SHALL MAKE A U-TURN UPON ANY PUBLIC HIGHWAY OR PRIVATE ROAD OPEN TO PUBLIC MOTOR VEHICLE TRAFFIC. § 15. The vehicle and traffic law is amended by adding a new section 509-z to read as follows: § 509-Z. MOTOR CARRIER INFORMATION. THE COMMISSIONER OF TRANSPORTA- TION, IN CONSULTATION WITH THE COMMISSIONER, SHALL ESTABLISH REQUIRE- S. 1509--C 106 A. 2009--C MENTS FOR ANY PERSON OR ENTITY THAT OWNS AND OPERATES ONE OR MORE ALTERED MOTOR VEHICLES, COMMONLY REFERRED TO AS "STRETCH LIMOUSINES", FOR PURPOSES OF ESTABLISHING CONSPICUOUS DISPLAY OF VALID OPERATING AUTHORITY, INSPECTION INFORMATION, AND DRIVER QUALIFICATIONS AT LOCATIONS WHERE SUCH PERSONS OR ENTITIES PERFORM CONTRACT OR COMMON CARRIER SERVICES WITH ALTERED MOTOR VEHICLES AND WITHIN ANY ALTERED MOTOR VEHICLE USED TO PROVIDE SUCH SERVICES. § 16. Section 138 of the transportation law is amended by adding a new subdivision 9 to read as follows: 9. TO MAINTAIN AND UPDATE ITS WEBSITE TO PROVIDE INFORMATION WITH REGARD TO EACH BUS OPERATOR UNDER SUBPARAGRAPHS (II) AND (VI) OF PARA- GRAPH A OF SUBDIVISION TWO OF SECTION ONE HUNDRED FORTY OF THIS CHAPTER REQUIRING DEPARTMENT OPERATING AUTHORITY THAT INCLUDES THE BUS OPERA- TOR'S NAME, NUMBER OF INSPECTIONS, NUMBER OF OUT OF SERVICE ORDERS, OPERATOR IDENTIFICATION NUMBER, LOCATION AND REGION OF OPERATION INCLUD- ING PLACE OF ADDRESS, PERCENTILE TO WHICH A MOTOR CARRIER FALLS WITH RESPECT TO OUT OF SERVICE DEFECTS, AND THE NUMBER OF SERIOUS PHYSICAL INJURY OR FATAL CRASHES INVOLVING A FOR-HIRE VEHICLE REQUIRING OPERATING AUTHORITY PURSUANT TO THIS ARTICLE. § 17. (1) The department of transportation, in consultation with the department of motor vehicles, the governor's traffic safety committee, the division of state police and any other state agency, authority or political subdivision thereof deemed necessary by the commissioner of transportation, shall conduct a study to assess the current design of entrance and exit ramps and the appropriateness of existing signage on state parkways to mitigate U-turns and wrong-way entry by commercial vehicles and make recommendations to mitigate. (2) The department of motor vehicles, in consultation with the department of transportation, the governor's traffic safety committee and the division of state police and any other state agency, authority or political subdivision thereof deemed necessary by the commissioner of transportation, shall conduct a study and provide recommendations to improve crash reporting and data collection pertaining to commercial vehicles. (3) Such commissioners shall submit each study with recommendations and findings to the gover- nor, the temporary president of the senate and the speaker of the assem- bly within two years of the effective date of this act. § 18. The transportation law is amended by adding a new section 144 to read as follows: § 144. FEES AND CHARGES. THE COMMISSIONER OR AUTHORIZED OFFICER OR EMPLOYEE OF THE DEPARTMENT SHALL CHARGE AND COLLECT EIGHTY-FIVE DOLLARS FOR THE INSPECTION OR REINSPECTION OF ALL MOTOR VEHICLES TRANSPORTING PASSENGERS SUBJECT TO THE DEPARTMENT'S INSPECTION REQUIREMENTS PURSUANT TO SECTION ONE HUNDRED FORTY OF THIS ARTICLE, EXCEPT SUCH: (A) MOTOR VEHICLES OPERATED UNDER CONTRACT WITH A MUNICIPALITY TO PROVIDE STATE- WIDE MASS TRANSPORTATION OPERATING ASSISTANCE ELIGIBLE SERVICE; (B) MOTOR VEHICLES OPERATED UNDER CONTRACT WITH A MUNICIPALITY OR SCHOOL DISTRICT TO PROVIDE SCHOOL-RELATED TRANSPORTATION SERVICES; (C) MOTOR VEHICLES AUTHORIZED BY THE COMMISSIONER OF HEALTH TO PROVIDE NON-EMER- GENCY MEDICAL TRANSPORTATION SERVICES; AND (D) MOTOR VEHICLES USED PRIMARILY TO TRANSPORT PASSENGERS PURSUANT TO SUBPARAGRAPHS (I), (III), (IV), AND (V) OF PARAGRAPH A OF SUBDIVISION TWO OF SECTION ONE HUNDRED FORTY OF THIS ARTICLE. THE DEPARTMENT MAY DENY INSPECTION OF ANY MOTOR VEHICLE TRANSPORTING PASSENGERS SUBJECT TO THE DEPARTMENT'S INSPECTION REQUIREMENTS IF SUCH FEE IS NOT PAID WITHIN NINETY DAYS OF THE DATE NOTED ON THE DEPARTMENT INVOICE. S. 1509--C 107 A. 2009--C § 19. Paragraph 1 and subparagraph (A) of paragraph 2 of subsection (f) of section 3420 of the insurance law, paragraph 1 as amended by chapter 305 of the laws of 1995 and subparagraph (A) of paragraph 2 as separately amended by chapters 547 and 568 of the laws of 1997, are amended to read as follows: (1) No policy insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any natural person arising out of the ownership, maintenance and use of a motor vehicle OR AN ALTERED MOTOR VEHICLE COMMONLY REFERRED TO AS A "STRETCH LIMOUSINE" HAVING A SEATING CAPACITY OF EIGHT OR MORE PASSENGERS USED IN THE BUSI- NESS OF CARRYING OR TRANSPORTING PASSENGERS FOR HIRE, by the insured shall be issued or delivered by any authorized insurer upon any motor vehicle OR AN ALTERED MOTOR VEHICLE COMMONLY REFERRED TO AS A "STRETCH LIMOUSINE" HAVING A SEATING CAPACITY OF EIGHT OR MORE PASSENGERS USED IN THE BUSINESS OF CARRYING OR TRANSPORTING PASSENGERS FOR HIRE, then prin- cipally garaged or principally used in this state unless it contains a provision whereby the insurer agrees that it will pay to the insured, as defined in such provision, subject to the terms and conditions set forth therein to be prescribed by the board of directors of the Motor Vehicle Accident Indemnification Corporation and approved by the superintendent, all sums, not exceeding a maximum amount or limit of twenty-five thou- sand dollars exclusive of interest and costs, on account of injury to and all sums, not exceeding a maximum amount or limit of fifty thousand dollars exclusive of interest and costs, on account of death of one person, in any one accident, and the maximum amount or limit, subject to such limit for any one person so injured of fifty thousand dollars or so killed of one hundred thousand dollars, exclusive of interest and costs, on account of injury to, or death of, more than one person in any one accident, which the insured or his legal representative shall be enti- tled to recover as damages from an owner or operator of an uninsured motor vehicle, unidentified motor vehicle which leaves the scene of an accident, a motor vehicle registered in this state as to which at the time of the accident there was not in effect a policy of liability insurance, a stolen vehicle, a motor vehicle operated without permission of the owner, an insured motor vehicle where the insurer disclaims liability or denies coverage or an unregistered vehicle because of bodi- ly injury, sickness or disease, including death resulting therefrom, sustained by the insured, caused by accident occurring in this state and arising out of the ownership, maintenance or use of such motor vehicle. No payment for non-economic loss shall be made under such policy provision to a covered person unless such person has incurred a serious injury, as such terms are defined in section five thousand one hundred two of this chapter. Such policy shall not duplicate any element of basic economic loss provided for under article fifty-one of this chap- ter. No payments of first party benefits for basic economic loss made pursuant to such article shall diminish the obligations of the insurer under this policy provision for the payment of non-economic loss and economic loss in excess of basic economic loss. Notwithstanding any inconsistent provisions of section three thousand four hundred twenty- five of this article, any such policy which does not contain the afore- said provisions shall be construed as if such provisions were embodied therein. (A) Any such policy shall, at the option of the insured, also provide supplementary uninsured/underinsured motorists insurance for bodily injury, in an amount up to the bodily injury liability insurance limits of coverage provided under such policy, subject to a maximum of two S. 1509--C 108 A. 2009--C hundred fifty thousand dollars because of bodily injury to or death of one person in any one accident and, subject to such limit for one person, up to five hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, or a combined single limit policy of five hundred thousand dollars because of bodily injury to or death of one or more persons in any one accident; AND ANY SUCH POLICY INSURING AGAINST LOSS RESULTING FROM LIABILITY IMPOSED BY LAW FOR BODILY INJURY OR DEATH SUFFERED BY ANY NATURAL PERSON ARISING OUT OF THE OWNERSHIP, MAINTENANCE, AND USE OF AN ALTERED MOTOR VEHICLE COMMONLY REFERRED TO AS A "STRETCH LIMOUSINE" HAVING A SEATING CAPACITY OF EIGHT OR MORE PASSENGERS USED IN THE BUSINESS OF CARRYING OR TRANS- PORTING PASSENGERS FOR HIRE, SHALL PROVIDE SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODILY INJURY, IN AN AMOUNT OF A COMBINED SINGLE LIMIT OF ONE MILLION FIVE HUNDRED THOUSAND DOLLARS BECAUSE OF BODILY INJURY OR DEATH OF ONE OR MORE PERSONS IN ANY ONE ACCIDENT. Provided however, an insurer issuing ANY such policy, EXCEPT A POLICY INSURING AGAINST LOSS RESULTING FROM LIABILITY IMPOSED BY LAW FOR BODILY INJURY OR DEATH SUFFERED BY ANY NATURAL PERSON ARISING OUT OF THE OWNERSHIP, MAINTENANCE, AND USE OF AN ALTERED MOTOR VEHICLE COMMONLY REFERRED TO AS A "STRETCH LIMOUSINE" HAVING A SEATING CAPACITY OF EIGHT OR MORE PASSENGERS USED IN THE BUSINESS OF CARRYING OR TRANS- PORTING PASSENGERS FOR HIRE, in lieu of offering to the insured the coverages stated above, may provide supplementary uninsured/underinsured motorists insurance for bodily injury, in an amount up to the bodily injury liability insurance limits of coverage provided under such poli- cy, subject to a maximum of one hundred thousand dollars because of bodily injury to or death of one person in any one accident and, subject to such limit for one person, up to three hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, or a combined single limit policy of three hundred thousand dollars because of bodily injury to or death of one or more persons in any one accident, if such insurer also makes available a personal umbrella policy with liability coverage limits up to at least five hundred thousand dollars which also provides coverage for supplementary uninsured/underinsured motorists claims. Supplementary uninsured/underinsured motorists insurance shall provide coverage, in any state or Canadian province, if the limits of liability under all bodily injury liability bonds and insurance policies of another motor vehicle liable for damages are in a lesser amount than the bodily injury liability insurance limits of coverage provided by such policy. Upon written request by any insured covered by supplemental uninsured/underinsured motorists insurance or his duly authorized repre- sentative and upon disclosure by the insured of the insured's bodily injury and supplemental uninsured/underinsured motorists insurance coverage limits, the insurer of any other owner or operator of another motor vehicle against which a claim has been made for damages to the insured shall disclose, within forty-five days of the request, the bodi- ly injury liability insurance limits of its coverage provided under the policy or all bodily injury liability bonds. The time of the insured to make any supplementary uninsured/underinsured motorist claim, shall be tolled during the period the insurer of any other owner or operator of another motor vehicle that may be liable for damages to the insured, fails to so disclose its coverage. As a condition precedent to the obli- gation of the insurer to pay under the supplementary uninsured/underinsured motorists insurance coverage, the limits of liability of all bodily injury liability bonds or insurance policies S. 1509--C 109 A. 2009--C applicable at the time of the accident shall be exhausted by payment of judgments or settlements. § 20. This act shall take effect immediately; provided, however, that sections eight, ten, eleven and fourteen of this act shall take effect on the first of November next succeeding the date on which it shall have become a law; provided, however, sections nine and twelve of this act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however, sections thirteen and nineteen of this act shall take effect on the first day of January next succeeding the date on which it shall have become a law and shall apply to all policies issued, renewed, altered, or modified on or after such date; provided, however, section fifteen of this act shall take effect on the thirtieth day after it shall have become a law; provided, however, section eigh- teen of this act shall take effect October 1, 2019; provided, further, that effective immediately, the department of transportation and the department of motor vehicles are authorized and directed to promulgate such rules and regulations as are necessary for the implementation of this act on its effective date. PART JJJ Section 1. Section 150.10 of the criminal procedure law is amended by adding a new subdivision 3 to read as follows: 3. BEFORE ISSUING AN APPEARANCE TICKET A POLICE OFFICER OR OTHER PUBLIC SERVANT MUST INFORM THE ARRESTEE THAT THEY MAY PROVIDE THEIR CONTACT INFORMATION FOR THE PURPOSES OF RECEIVING A COURT NOTIFICATION TO REMIND THEM OF THEIR COURT APPEARANCE DATE FROM THE COURT OR A CERTI- FIED PRETRIAL SERVICES AGENCY. SUCH CONTACT INFORMATION MAY INCLUDE ONE OR MORE PHONE NUMBERS, A RESIDENTIAL ADDRESS OR ADDRESS AT WHICH THE ARRESTEE RECEIVES MAIL, OR AN EMAIL ADDRESS. THE CONTACT INFORMATION SHALL BE RECORDED AND BE TRANSMITTED TO THE LOCAL CRIMINAL COURT AS REQUIRED BY SECTION 150.80 OF THIS ARTICLE. § 1-a. Subdivision 1 of section 150.20 of the criminal procedure law, as amended by chapter 550 of the laws of 1987, is amended to read as follows: 1. (A) Whenever a police officer is authorized pursuant to section 140.10 OF THIS TITLE to arrest a person without a warrant for an offense other than a class A, B, C or D felony or a violation of section 130.25, 130.40, 205.10, 205.17, 205.19 or 215.56 of the penal law, he [may] SHALL, EXCEPT AS SET OUT IN PARAGRAPH (B) OF THIS SUBDIVISION, subject to the provisions of subdivisions three and four of section 150.40 OF THIS TITLE, instead issue to and serve upon such person an appearance ticket. (B) AN OFFICER IS NOT REQUIRED TO ISSUE AN APPEARANCE TICKET IF: (I) THE PERSON HAS ONE OR MORE OUTSTANDING LOCAL CRIMINAL COURT OR SUPERIOR COURT WARRANTS; (II) THE PERSON HAS FAILED TO APPEAR IN COURT PROCEEDINGS IN THE LAST TWO YEARS; (III) THE PERSON HAS BEEN GIVEN A REASONABLE OPPORTUNITY TO MAKE THEIR VERIFIABLE IDENTITY AND A METHOD OF CONTACT KNOWN, AND HAS BEEN UNABLE OR UNWILLING TO DO SO, SO THAT A CUSTODIAL ARREST IS NECESSARY TO SUBJECT THE INDIVIDUAL TO THE JURISDICTION OF THE COURT. FOR THE PURPOSES OF THIS SECTION, AN OFFICER MAY RELY ON VARIOUS FACTORS TO DETERMINE A PERSON'S IDENTITY, INCLUDING BUT NOT LIMITED TO PERSONAL KNOWLEDGE OF SUCH PERSON, SUCH PERSON'S SELF-IDENTIFICATION, OR PHOTO- GRAPHIC IDENTIFICATION. THERE IS NO REQUIREMENT THAT A PERSON PRESENT S. 1509--C 110 A. 2009--C PHOTOGRAPHIC IDENTIFICATION IN ORDER TO BE ISSUED AN APPEARANCE TICKET IN LIEU OF ARREST WHERE THE PERSON'S IDENTITY IS OTHERWISE VERIFIABLE; HOWEVER, IF OFFERED BY SUCH PERSON, AN OFFICER SHALL ACCEPT AS EVIDENCE OF IDENTITY THE FOLLOWING: A VALID DRIVER'S LICENSE OR NON-DRIVER IDEN- TIFICATION CARD ISSUED BY THE COMMISSIONER OF MOTOR VEHICLES, THE FEDER- AL GOVERNMENT, ANY UNITED STATES TERRITORY, COMMONWEALTH OR POSSESSION, THE DISTRICT OF COLUMBIA, A STATE GOVERNMENT OR MUNICIPAL GOVERNMENT WITHIN THE UNITED STATES OR A PROVINCIAL GOVERNMENT OF THE DOMINION OF CANADA; A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR ANY OTHER COUNTRY; AN IDENTIFICATION CARD ISSUED BY THE ARMED FORCES OF THE UNITED STATES; A PUBLIC BENEFIT CARD, AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION 158.00 OF THE PENAL LAW; (IV) THE PERSON IS CHARGED WITH A CRIME BETWEEN MEMBERS OF THE SAME FAMILY OR HOUSEHOLD, AS DEFINED IN SUBDIVISION ONE OF SECTION 530.11 OF THIS CHAPTER; (V) THE PERSON IS CHARGED WITH A CRIME DEFINED IN ARTICLE 130 OF THE PENAL LAW; (VI) IT REASONABLY APPEARS THE PERSON SHOULD BE BROUGHT BEFORE THE COURT FOR CONSIDERATION OF ISSUANCE OF AN ORDER OF PROTECTION, PURSUANT TO SECTION 530.13 OF THIS CHAPTER, BASED ON THE FACTS OF THE CRIME OR OFFENSE THAT THE OFFICER HAS REASONABLE CAUSE TO BELIEVE OCCURRED; (VII) THE PERSON IS CHARGED WITH A CRIME FOR WHICH THE COURT MAY SUSPEND OR REVOKE HIS OR HER DRIVER LICENSE; (VIII) IT REASONABLY APPEARS TO THE OFFICER, BASED ON THE OBSERVED BEHAVIOR OF THE INDIVIDUAL IN THE PRESENT CONTACT WITH THE OFFICER AND FACTS REGARDING THE PERSON'S CONDITION THAT INDICATES A SIGN OF DISTRESS TO SUCH A DEGREE THAT THE PERSON WOULD FACE HARM WITHOUT IMMEDIATE MEDICAL OR MENTAL HEALTH CARE, THAT BRINGING THE PERSON BEFORE THE COURT WOULD BE IN SUCH PERSON'S INTEREST IN ADDRESSING THAT NEED; PROVIDED, HOWEVER, THAT BEFORE MAKING THE ARREST, THE OFFICER SHALL MAKE ALL REASONABLE EFFORTS TO ASSIST THE PERSON IN SECURING APPROPRIATE SERVICES. § 1-b. Section 150.30 of the criminal procedure law is REPEALED. § 1-c. Subdivision 1 of section 150.40 of the criminal procedure law is amended to read as follows: 1. An appearance ticket must be made returnable AT A DATE AS SOON AS POSSIBLE, BUT IN NO EVENT LATER THAN TWENTY DAYS FROM THE DATE OF ISSU- ANCE, OR AT A LATER DATE, WITH THE COURT'S PERMISSION DUE TO ENROLLMENT IN A PRE-ARRAIGNMENT DIVERSION PROGRAM. THE APPEARANCE TICKET SHALL BE MADE RETURNABLE in a local criminal court designated in section 100.55 OF THIS TITLE as one with which an information for the offense in ques- tion may be filed. § 1-d. The criminal procedure law is amended by adding a new section 150.80 to read as follows: § 150.80 COURT APPEARANCE REMINDERS. 1. A POLICE OFFICER OR OTHER PUBLIC SERVANT WHO HAS ISSUED AND SERVED AN APPEARANCE TICKET MUST, WITHIN TWENTY-FOUR HOURS OF ISSUANCE, FILE OR CAUSE TO BE FILED WITH THE LOCAL CRIMINAL COURT THE APPEARANCE TICKET AND ANY CONTACT INFORMATION MADE AVAILABLE PURSUANT TO SUBDIVISION THREE OF SECTION 150.10 OF THIS ARTICLE. 2. UPON RECEIPT OF THE APPEARANCE TICKET AND ANY CONTACT INFORMATION MADE AVAILABLE PURSUANT TO SUBDIVISION THREE OF SECTION 150.10 OF THIS ARTICLE, THE LOCAL CRIMINAL COURT SHALL ISSUE A COURT APPEARANCE REMIND- ER AND NOTIFY THE ARRESTEE OF THEIR COURT APPEARANCES BY TEXT MESSAGE, TELEPHONE CALL, ELECTRONIC MAIL, OR FIRST CLASS MAIL. THE LOCAL CRIMINAL COURT MAY PARTNER WITH A CERTIFIED PRETRIAL SERVICES AGENCY OR AGENCIES S. 1509--C 111 A. 2009--C IN THAT COUNTY TO PROVIDE SUCH NOTIFICATION AND SHALL INCLUDE A COPY OF THE APPEARANCE TICKET. 3. A LOCAL CRIMINAL COURT IS NOT REQUIRED TO ISSUE A COURT APPEARANCE REMINDER IF THE APPEARANCE TICKET REQUIRES THE ARRESTEE'S APPEARANCE WITHIN SEVENTY-TWO HOURS OF ITS ISSUANCE, OR NO CONTACT INFORMATION HAS BEEN PROVIDED. § 1-e. Subdivisions 1, 2, 4, 5, 6, 7 and 9 of section 500.10 of the criminal procedure law are amended and a new subdivision 3-a is added to read as follows: 1. "Principal" means a defendant in a criminal action or proceeding, or a person adjudged a material witness therein, or any other person so involved therein that [he] THE PRINCIPAL may by law be compelled to appear before a court for the purpose of having such court exercise control over [his] THE PRINCIPAL'S person to secure [his] THE PRINCI- PAL'S future attendance at the action or proceeding when required, and who in fact either is before the court for such purpose or has been before it and been subjected to such control. 2. "Release on own recognizance." A court releases a principal on [his] THE PRINCIPAL'S own recognizance when, having acquired control over [his] THE PRINCIPAL'S person, it permits [him] THE PRINCIPAL to be at liberty during the pendency of the criminal action or proceeding involved upon condition that [he] THE PRINCIPAL will appear thereat whenever [his] THE PRINCIPAL'S attendance may be required and will at all times render [himself] THE PRINCIPAL amenable to the orders and processes of the court. 3-A. "RELEASE UNDER NON-MONETARY CONDITIONS." A COURT RELEASES A PRIN- CIPAL UNDER NON-MONETARY CONDITIONS WHEN, HAVING ACQUIRED CONTROL OVER A PERSON, IT AUTHORIZES THE PERSON TO BE AT LIBERTY DURING THE PENDENCY OF THE CRIMINAL ACTION OR PROCEEDING INVOLVED UNDER CONDITIONS ORDERED BY THE COURT, WHICH SHALL BE THE LEAST RESTRICTIVE CONDITIONS THAT WILL REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT. SUCH CONDITIONS MAY INCLUDE, AMONG OTHER CONDITIONS REASONABLE UNDER THE CIRCUMSTANCES: THAT THE PRINCIPAL BE IN CONTACT WITH A PRETRIAL SERVICES AGENCY SERVING PRINCIPALS IN THAT COUNTY; THAT THE PRINCIPAL ABIDE BY REASONABLE, SPEC- IFIED RESTRICTIONS ON TRAVEL THAT ARE REASONABLY RELATED TO AN ACTUAL RISK OF FLIGHT FROM THE JURISDICTION; THAT THE PRINCIPAL REFRAIN FROM POSSESSING A FIREARM, DESTRUCTIVE DEVICE OR OTHER DANGEROUS WEAPON; THAT, WHEN IT IS SHOWN PURSUANT TO SUBDIVISION FOUR OF SECTION 510.45 OF THIS TITLE THAT NO OTHER REALISTIC MONETARY CONDITION OR SET OF NON-MON- ETARY CONDITIONS WILL SUFFICE TO REASONABLY ASSURE THE PERSON'S RETURN TO COURT, THE PERSON BE PLACED IN REASONABLE PRETRIAL SUPERVISION WITH A PRETRIAL SERVICES AGENCY SERVING PRINCIPALS IN THAT COUNTY; THAT, WHEN IT IS SHOWN PURSUANT TO PARAGRAPH (A) OF SUBDIVISION FOUR OF SECTION 510.40 OF THIS TITLE THAT NO OTHER REALISTIC NON-MONETARY CONDITION OR SET OF NON-MONETARY CONDITIONS WILL SUFFICE TO REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT, THE PRINCIPAL'S LOCATION BE MONITORED WITH AN APPROVED ELECTRONIC MONITORING DEVICE, IN ACCORDANCE WITH SUCH SUBDI- VISION FOUR OF SECTION 510.40 OF THIS TITLE. A PRINCIPAL SHALL NOT BE REQUIRED TO PAY FOR ANY PART OF THE COST OF RELEASE ON NON-MONETARY CONDITIONS. 4. "Commit to the custody of the sheriff." A court commits a principal to the custody of the sheriff when, having acquired control over [his] THE PRINCIPAL'S person, it orders that [he] THE PRINCIPAL be confined in the custody of the sheriff during the pendency of the criminal action or proceeding involved. S. 1509--C 112 A. 2009--C 5. "Securing order" means an order of a court committing a principal to the custody of the sheriff[,] or fixing bail, WHERE AUTHORIZED, or releasing [him on his] THE PRINCIPAL ON THE PRINCIPAL'S own recognizance OR RELEASING THE PRINCIPAL UNDER NON-MONETARY CONDITIONS. 6. "Order of recognizance or bail" means a securing order releasing a principal on [his] THE PRINCIPAL'S own recognizance OR UNDER NON-MONE- TARY CONDITIONS or, WHERE AUTHORIZED, fixing bail. 7. "Application for recognizance or bail" means an application by a principal that the court, instead of committing [him] THE PRINCIPAL to or retaining [him] THE PRINCIPAL in the custody of the sheriff, either release [him on his own] THE PRINCIPAL ON THE PRINCIPAL'S OWN recogni- zance [or], RELEASE UNDER NON-MONETARY CONDITIONS, OR, WHERE AUTHORIZED, fix bail. 9. "Bail" means cash bail [or], a bail bond OR MONEY PAID WITH A CRED- IT CARD. § 1-f. Section 500.10 of the criminal procedure law is amended by adding two new subdivisions 21 and 22 to read as follows: 21. "QUALIFIES FOR ELECTRONIC MONITORING," FOR PURPOSES OF SUBDIVISION FOUR OF SECTION 510.40 OF THIS TITLE, MEANS A PERSON CHARGED WITH A FELONY, A MISDEMEANOR CRIME OF DOMESTIC VIOLENCE, A MISDEMEANOR DEFINED IN ARTICLE ONE HUNDRED THIRTY OF THE PENAL LAW, A CRIME AND THE CIRCUM- STANCES OF PARAGRAPH (B) OF SUBDIVISION TWO OF SECTION 530.60 OF THIS TITLE APPLY, OR ANY MISDEMEANOR WHERE THE DEFENDANT STANDS PREVIOUSLY CONVICTED, WITHIN THE PAST FIVE YEARS, OF A VIOLENT FELONY OFFENSE AS DEFINED IN SECTION 70.02 OF THE PENAL LAW. FOR THE PURPOSES OF THIS SUBDIVISION, IN CALCULATING SUCH FIVE YEAR PERIOD, ANY PERIOD OF TIME DURING WHICH THE DEFENDANT WAS INCARCERATED FOR ANY REASON BETWEEN THE TIME OF THE COMMISSION OF ANY SUCH PREVIOUS CRIME AND THE TIME OF COMMISSION OF THE PRESENT CRIME SHALL BE EXCLUDED AND SUCH FIVE YEAR PERIOD SHALL BE EXTENDED BY A PERIOD OR PERIODS EQUAL TO THE TIME SERVED UNDER SUCH INCARCERATION. 22. "MISDEMEANOR CRIME OF DOMESTIC VIOLENCE," FOR PURPOSES OF SUBDIVI- SION TWENTY-ONE OF THIS SECTION, MEANS A MISDEMEANOR UNDER THE PENAL LAW PROVISIONS AND CIRCUMSTANCES DESCRIBED IN SUBDIVISION ONE OF SECTION 530.11 OF THIS TITLE. § 2. Section 510.10 of the criminal procedure law, as amended by chap- ter 459 of the laws of 1984, is amended to read as follows: § 510.10 Securing order; when required; ALTERNATIVES AVAILABLE; STANDARD TO BE APPLIED. 1. When a principal, whose future court attendance at a criminal action or proceeding is or may be required, [initially] comes under the control of a court, such court [must] SHALL, IN ACCORDANCE WITH THIS TITLE, by a securing order[, either] release [him] THE PRINCIPAL on [his] THE PRINCIPAL'S own recognizance, RELEASE THE PRINCIPAL UNDER NON-MONETARY CONDITIONS, OR, WHERE AUTHORIZED, fix bail or commit [him] THE PRINCIPAL to the custody of the sheriff. IN ALL SUCH CASES, EXCEPT WHERE ANOTHER TYPE OF SECURING ORDER IS SHOWN TO BE REQUIRED BY LAW, THE COURT SHALL RELEASE THE PRINCIPAL PENDING TRIAL ON THE PRINCIPAL'S OWN RECOGNIZANCE, UNLESS IT IS DEMONSTRATED AND THE COURT MAKES AN INDIVID- UALIZED DETERMINATION THAT THE PRINCIPAL POSES A RISK OF FLIGHT TO AVOID PROSECUTION. IF SUCH A FINDING IS MADE, THE COURT MUST SELECT THE LEAST RESTRICTIVE ALTERNATIVE AND CONDITION OR CONDITIONS THAT WILL REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT. THE COURT SHALL EXPLAIN ITS CHOICE OF RELEASE, RELEASE WITH CONDITIONS, BAIL OR REMAND ON THE RECORD OR IN WRITING. S. 1509--C 113 A. 2009--C 2. A PRINCIPAL IS ENTITLED TO REPRESENTATION BY COUNSEL UNDER THIS CHAPTER IN PREPARING AN APPLICATION FOR RELEASE, WHEN A SECURING ORDER IS BEING CONSIDERED AND WHEN A SECURING ORDER IS BEING REVIEWED FOR MODIFICATION, REVOCATION OR TERMINATION. IF THE PRINCIPAL IS FINANCIALLY UNABLE TO OBTAIN COUNSEL, COUNSEL SHALL BE ASSIGNED TO THE PRINCIPAL. 3. IN CASES OTHER THAN AS DESCRIBED IN SUBDIVISION FOUR OF THIS SECTION THE COURT SHALL RELEASE THE PRINCIPAL PENDING TRIAL ON THE PRIN- CIPAL'S OWN RECOGNIZANCE, UNLESS THE COURT FINDS ON THE RECORD OR IN WRITING THAT RELEASE ON THE PRINCIPAL'S OWN RECOGNIZANCE WILL NOT REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT. IN SUCH INSTANCES, THE COURT SHALL RELEASE THE PRINCIPAL UNDER NON-MONETARY CONDITIONS, SELECTING THE LEAST RESTRICTIVE ALTERNATIVE AND CONDITIONS THAT WILL REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT. THE COURT SHALL EXPLAIN ITS CHOICE OF ALTERNATIVE AND CONDITIONS ON THE RECORD OR IN WRITING. 4. WHERE THE PRINCIPAL STANDS CHARGED WITH A QUALIFYING OFFENSE, THE COURT, UNLESS OTHERWISE PROHIBITED BY LAW, MAY IN ITS DISCRETION RELEASE THE PRINCIPAL PENDING TRIAL ON THE PRINCIPAL'S OWN RECOGNIZANCE OR UNDER NON-MONETARY CONDITIONS, FIX BAIL, OR, WHERE THE DEFENDANT IS CHARGED WITH A QUALIFYING OFFENSE WHICH IS A FELONY, THE COURT MAY COMMIT THE PRINCIPAL TO THE CUSTODY OF THE SHERIFF. A PRINCIPAL STANDS CHARGED WITH A QUALIFYING OFFENSE FOR THE PURPOSES OF THIS SUBDIVISION WHEN HE OR SHE STANDS CHARGED WITH: (A) A FELONY ENUMERATED IN SECTION 70.02 OF THE PENAL LAW, OTHER THAN BURGLARY IN THE SECOND DEGREE AS DEFINED IN SUBDIVISION TWO OF SECTION 140.25 OF THE PENAL LAW OR ROBBERY IN THE SECOND DEGREE AS DEFINED IN SUBDIVISION ONE OF SECTION 160.10 OF THE PENAL LAW; (B) A CRIME INVOLVING WITNESS INTIMIDATION UNDER SECTION 215.15 OF THE PENAL LAW; (C) A CRIME INVOLVING WITNESS TAMPERING UNDER SECTION 215.11, 215.12 OR 215.13 OF THE PENAL LAW; (D) A CLASS A FELONY DEFINED IN THE PENAL LAW, OTHER THAN IN ARTICLE TWO HUNDRED TWENTY OF SUCH LAW WITH THE EXCEPTION OF SECTION 220.77 OF SUCH LAW; (E) A FELONY SEX OFFENSE DEFINED IN SECTION 70.80 OF THE PENAL LAW OR A CRIME INVOLVING INCEST AS DEFINED IN SECTION 255.25, 255.26 OR 255.27 OF SUCH LAW, OR A MISDEMEANOR DEFINED IN ARTICLE ONE HUNDRED THIRTY OF SUCH LAW; (F) CONSPIRACY IN THE SECOND DEGREE AS DEFINED IN SECTION 105.15 OF THE PENAL LAW, WHERE THE UNDERLYING ALLEGATION OF SUCH CHARGE IS THAT THE DEFENDANT CONSPIRED TO COMMIT A CLASS A FELONY DEFINED IN ARTICLE ONE HUNDRED TWENTY-FIVE OF THE PENAL LAW; (G) MONEY LAUNDERING IN SUPPORT OF TERRORISM IN THE FIRST DEGREE AS DEFINED IN SECTION 470.24 OF THE PENAL LAW; MONEY LAUNDERING IN SUPPORT OF TERRORISM IN THE SECOND DEGREE AS DEFINED IN SECTION 470.23 OF THE PENAL LAW; OR A FELONY CRIME OF TERRORISM AS DEFINED IN ARTICLE FOUR HUNDRED NINETY OF THE PENAL LAW, OTHER THAN THE CRIME DEFINED IN SECTION 490.20 OF SUCH LAW; (H) CRIMINAL CONTEMPT IN THE SECOND DEGREE AS DEFINED IN SUBDIVISION THREE OF SECTION 215.50 OF THE PENAL LAW, CRIMINAL CONTEMPT IN THE FIRST DEGREE AS DEFINED IN SUBDIVISION (B), (C) OR (D) OF SECTION 215.51 OF THE PENAL LAW OR AGGRAVATED CRIMINAL CONTEMPT AS DEFINED IN SECTION 215.52 OF THE PENAL LAW, AND THE UNDERLYING ALLEGATION OF SUCH CHARGE OF CRIMINAL CONTEMPT IN THE SECOND DEGREE, CRIMINAL CONTEMPT IN THE FIRST DEGREE OR AGGRAVATED CRIMINAL CONTEMPT IS THAT THE DEFENDANT VIOLATED A DULY SERVED ORDER OF PROTECTION WHERE THE PROTECTED PARTY IS A MEMBER OF S. 1509--C 114 A. 2009--C THE DEFENDANT'S SAME FAMILY OR HOUSEHOLD AS DEFINED IN SUBDIVISION ONE OF SECTION 530.11 OF THIS ARTICLE; OR (I) FACILITATING A SEXUAL PERFORMANCE BY A CHILD WITH A CONTROLLED SUBSTANCE OR ALCOHOL AS DEFINED IN SECTION 263.30 OF THE PENAL LAW, USE OF A CHILD IN A SEXUAL PERFORMANCE AS DEFINED IN SECTION 263.05 OF THE PENAL LAW OR LURING A CHILD AS DEFINED IN SUBDIVISION ONE OF SECTION 120.70 OF THE PENAL LAW. 5. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS THREE AND FOUR OF THIS SECTION, WITH RESPECT TO ANY CHARGE FOR WHICH BAIL OR REMAND IS NOT ORDERED, AND FOR WHICH THE COURT WOULD NOT OR COULD NOT OTHERWISE REQUIRE BAIL OR REMAND, A DEFENDANT MAY, AT ANY TIME, REQUEST THAT THE COURT SET BAIL IN A NOMINAL AMOUNT REQUESTED BY THE DEFENDANT IN THE FORM SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION 520.10 OF THIS TITLE; IF THE COURT IS SATISFIED THAT THE REQUEST IS VOLUNTARY, THE COURT SHALL SET SUCH BAIL IN SUCH AMOUNT. 6. When a securing order is revoked or otherwise terminated in the course of an uncompleted action or proceeding but the principal's future court attendance still is or may be required and [he] THE PRINCIPAL is still under the control of a court, a new securing order must be issued. When the court revokes or otherwise terminates a securing order which committed the principal to the custody of the sheriff, the court shall give written notification to the sheriff of such revocation or termi- nation of the securing order. § 3. Section 510.20 of the criminal procedure law is amended to read as follows: § 510.20 Application for [recognizance or bail; making and determi- nation thereof in general] A CHANGE IN SECURING ORDER. 1. Upon any occasion when a court [is required to issue] HAS ISSUED a securing order with respect to a principal[, or at any time when a] AND THE principal is confined in the custody of the sheriff as a result of THE SECURING ORDER OR a previously issued securing order, [he] THE PRIN- CIPAL may make an application for recognizance, RELEASE UNDER NON-MONE- TARY CONDITIONS or bail. 2. (A) THE PRINCIPAL IS ENTITLED TO REPRESENTATION BY COUNSEL IN THE MAKING AND PRESENTATION OF SUCH APPLICATION. IF THE PRINCIPAL IS FINAN- CIALLY UNABLE TO OBTAIN COUNSEL, COUNSEL SHALL BE ASSIGNED TO THE PRIN- CIPAL. (B) Upon such application, the principal must be accorded an opportu- nity to be heard, PRESENT EVIDENCE and to contend that an order of recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or, WHERE AUTHOR- IZED, bail must or should issue, that the court should release [him on his] THE PRINCIPAL ON THE PRINCIPAL'S own recognizance OR UNDER NON-MON- ETARY CONDITIONS rather than fix bail, and that if bail is AUTHORIZED AND fixed it should be in a suggested amount and form. § 4. Intentionally omitted. § 5. Section 510.30 of the criminal procedure law, subparagraph (v) of paragraph (a) of subdivision 2 as amended by chapter 920 of the laws of 1982, subparagraph (vi) of paragraph (a) of subdivision 2 as renumbered by chapter 447 of the laws of 1977, subparagraph (vii) as added and subparagraphs (viii) and (ix) of paragraph (a) of subdivision 2 as renumbered by section 1 of part D of chapter 491 of the laws of 2012, and subdivision 3 as added by chapter 788 of the laws of 1981, is amended to read as follows: § 510.30 Application for [recognizance or bail] SECURING ORDER; rules of law and criteria controlling determination. S. 1509--C 115 A. 2009--C 1. [Determinations of applications for recognizance or bail are not in all cases discretionary but are subject to rules, prescribed in article five hundred thirty and other provisions of law relating to specific kinds of criminal actions and proceedings, providing (a) that in some circumstances such an application must as a matter of law be granted, (b) that in others it must as a matter of law be denied and the princi- pal committed to or retained in the custody of the sheriff, and (c) that in others the granting or denial thereof is a matter of judicial discretion. 2. To the extent that the issuance of an order of recognizance or bail and the terms thereof are matters of discretion rather than of law, an application is determined on the basis of the following factors and criteria: (a)] With respect to any principal, the court IN ALL CASES, UNLESS OTHERWISE PROVIDED BY LAW, must [consider the] IMPOSE THE LEAST RESTRIC- TIVE kind and degree of control or restriction that is necessary to secure [his court attendance] THE PRINCIPAL'S RETURN TO COURT when required. In determining that matter, the court must, on the basis of available information, consider and take into account[: (i) The principal's character, reputation, habits and mental condi- tion; (ii) His employment and financial resources; and (iii) His family ties and the length of his residence if any in the community; and (iv) His] INFORMATION ABOUT THE PRINCIPAL THAT IS RELEVANT TO THE PRINCIPAL'S RETURN TO COURT, INCLUDING: (A) THE PRINCIPAL'S ACTIVITIES AND HISTORY; (B) IF THE PRINCIPAL IS A DEFENDANT, THE CHARGES FACING THE PRINCIPAL; (C) THE PRINCIPAL'S criminal CONVICTION record if any; [and (v) His] (D) THE PRINCIPAL'S record of previous adjudication as a juvenile delinquent, as retained pursuant to section 354.2 of the family court act, or, of pending cases where fingerprints are retained pursuant to section 306.1 of such act, or a youthful offender, if any; [and (vi) His] (e) THE PRINCIPAL'S previous record [if any in responding to court appearances when required or] with respect to flight to avoid criminal prosecution; [and (vii)] (F) IF MONETARY BAIL IS AUTHORIZED, ACCORDING TO THE RESTRICTIONS SET FORTH IN THIS TITLE, THE PRINCIPAL'S INDIVIDUAL FINAN- CIAL CIRCUMSTANCES, AND, IN CASES WHERE BAIL IS AUTHORIZED, THE PRINCI- PAL'S ABILITY TO POST BAIL WITHOUT POSING UNDUE HARDSHIP, AS WELL AS HIS OR HER ABILITY TO OBTAIN A SECURED, UNSECURED, OR PARTIALLY SECURED BOND; (G) Where the principal is charged with a crime or crimes against a member or members of the same family or household as that term is defined in subdivision one of section 530.11 of this title, the follow- ing factors: [(A)] (I) any violation by the principal of an order of protection issued by any court for the protection of a member or members of the same family or household as that term is defined in subdivision one of section 530.11 of this title, whether or not such order of protection is currently in effect; and [(B)] (II) the principal's history of use or possession of a firearm; and [(viii)] (H) If [he] THE PRINCIPAL is a defendant, [the weight of the evidence against him in the pending criminal action and any other factor indicating probability or improbability of conviction; or,] in the case S. 1509--C 116 A. 2009--C of an application for [bail or recognizance] A SECURING ORDER pending appeal, the merit or lack of merit of the appeal[; and (ix) If he is a defendant, the sentence which may be or has been imposed upon conviction]. [(b)] 2. Where the principal is a defendant-appellant in a pending appeal from a judgment of conviction, the court must also consider the likelihood of ultimate reversal of the judgment. A determination that the appeal is palpably without merit alone justifies, but does not require, a denial of the application, regardless of any determination made with respect to the factors specified in [paragraph (a)] SUBDIVI- SION ONE OF THIS SECTION. 3. When bail or recognizance is ordered, the court shall inform the principal, if [he] THE PRINCIPAL is a defendant charged with the commis- sion of a felony, that the release is conditional and that the court may revoke the order of release and MAY BE AUTHORIZED TO commit the princi- pal to the custody of the sheriff in accordance with the provisions of subdivision two of section 530.60 of this chapter if [he] THE PRINCIPAL commits a subsequent felony while at liberty upon such order. § 6. Section 510.40 of the criminal procedure law is amended to read as follows: § 510.40 [Application for recognizance or bail; determination thereof, form of securing order and execution thereof] COURT NOTIFI- CATION TO PRINCIPAL OF CONDITIONS OF RELEASE AND OF ALLEGED VIOLATIONS OF CONDITIONS OF RELEASE. 1. [An application for recognizance or bail must be determined by a securing order which either: (a) Grants the application and releases the principal on his own recognizance; or (b) Grants the application and fixes bail; or (c) Denies the application and commits the principal to, or retains him in, the custody of the sheriff. 2.] Upon ordering that a principal be released on [his] THE PRINCI- PAL'S own recognizance, OR RELEASED UNDER NON-MONETARY CONDITIONS, OR, IF BAIL HAS BEEN FIXED, UPON THE POSTING OF BAIL, the court must direct [him] THE PRINCIPAL to appear in the criminal action or proceeding involved whenever [his] THE PRINCIPAL'S attendance may be required and to [render himself] BE at all times amenable to the orders and processes of the court. If such principal is in the custody of the sheriff or at liberty upon bail at the time of the order, the court must direct that [he] THE PRINCIPAL be discharged from such custody or, as the case may be, that [his] THE PRINCIPAL'S bail be exonerated. [3.] 2. Upon the issuance of an order fixing bail, WHERE AUTHORIZED, and upon the posting thereof, the court must examine the bail to deter- mine whether it complies with the order. If it does, the court must, in the absence of some factor or circumstance which in law requires or authorizes disapproval thereof, approve the bail and must issue a certificate of release, authorizing the principal to be at liberty, and, if [he] THE PRINCIPAL is in the custody of the sheriff at the time, directing the sheriff to discharge [him] THE PRINCIPAL therefrom. If the bail fixed is not posted, or is not approved after being posted, the court must order that the principal be committed to the custody of the sheriff. IN THE EVENT OF ANY SUCH NON-APPROVAL, THE COURT SHALL EXPLAIN PROMPTLY IN WRITING THE REASONS THEREFOR. 3. NON-MONETARY CONDITIONS OF RELEASE SHALL BE INDIVIDUALIZED AND ESTABLISHED IN WRITING BY THE COURT. AT FUTURE COURT APPEARANCES, THE COURT SHALL CONSIDER A LESSENING OF CONDITIONS OR MODIFICATION OF CONDI- S. 1509--C 117 A. 2009--C TIONS TO A LESS BURDENSOME FORM BASED ON THE PRINCIPAL'S COMPLIANCE WITH SUCH CONDITIONS OF RELEASE. IN THE EVENT OF ALLEGED NON-COMPLIANCE WITH THE CONDITIONS OF RELEASE IN AN IMPORTANT RESPECT, PURSUANT TO THIS SUBDIVISION, ADDITIONAL CONDITIONS MAY BE IMPOSED BY THE COURT, ON THE RECORD OR IN WRITING, ONLY AFTER NOTICE OF THE FACTS AND CIRCUMSTANCES OF SUCH ALLEGED NON-COMPLIANCE, REASONABLE UNDER THE CIRCUMSTANCES, AFFORDING THE PRINCIPAL AND THE PRINCIPAL'S ATTORNEY AND THE PEOPLE AN OPPORTUNITY TO PRESENT RELEVANT, ADMISSIBLE EVIDENCE, RELEVANT WITNESSES AND TO CROSS-EXAMINE WITNESSES, AND A FINDING BY CLEAR AND CONVINCING EVIDENCE THAT THE PRINCIPAL VIOLATED A CONDITION OF RELEASE IN AN IMPOR- TANT RESPECT. FOLLOWING SUCH A FINDING, IN DETERMINING WHETHER TO IMPOSE ADDITIONAL CONDITIONS FOR NON-COMPLIANCE, THE COURT SHALL CONSID- ER AND MAY SELECT CONDITIONS CONSISTENT WITH THE COURT'S OBLIGATION TO IMPOSE THE LEAST RESTRICTIVE CONDITION OR CONDITIONS THAT WILL REASON- ABLY ASSURE THE DEFENDANT'S RETURN TO COURT. THE COURT SHALL EXPLAIN ON THE RECORD OR IN WRITING THE REASONS FOR ITS DETERMINATION AND FOR ANY CHANGES TO THE CONDITIONS IMPOSED. 4. (A) ELECTRONIC MONITORING OF A PRINCIPAL'S LOCATION MAY BE ORDERED ONLY IF THE COURT FINDS, AFTER NOTICE, AN OPPORTUNITY TO BE HEARD AND AN INDIVIDUALIZED DETERMINATION EXPLAINED ON THE RECORD OR IN WRITING, THAT THE DEFENDANT QUALIFIES FOR ELECTRONIC MONITORING IN ACCORDANCE WITH SUBDIVISION TWENTY-ONE OF SECTION 500.10 OF THIS TITLE, AND NO OTHER REALISTIC NON-MONETARY CONDITION OR SET OF NON-MONETARY CONDITIONS WILL SUFFICE TO REASONABLY ASSURE A PRINCIPAL'S RETURN TO COURT. (B) THE SPECIFIC METHOD OF ELECTRONIC MONITORING OF THE PRINCIPAL'S LOCATION MUST BE APPROVED BY THE COURT. IT MUST BE THE LEAST RESTRIC- TIVE PROCEDURE AND METHOD THAT WILL REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT, AND UNOBTRUSIVE TO THE GREATEST EXTENT PRACTICABLE. (C) ELECTRONIC MONITORING OF THE LOCATION OF A PRINCIPAL MAY BE CONDUCTED ONLY BY A PUBLIC ENTITY UNDER THE SUPERVISION AND CONTROL OF A COUNTY OR MUNICIPALITY OR A NON-PROFIT ENTITY UNDER CONTRACT TO THE COUNTY, MUNICIPALITY OR THE STATE. A COUNTY OR MUNICIPALITY SHALL BE AUTHORIZED TO ENTER INTO A CONTRACT WITH ANOTHER COUNTY OR MUNICIPALITY IN THE STATE TO MONITOR PRINCIPALS UNDER NON-MONETARY CONDITIONS OF RELEASE IN ITS COUNTY, BUT COUNTIES, MUNICIPALITIES AND THE STATE SHALL NOT CONTRACT WITH ANY PRIVATE FOR-PROFIT ENTITY FOR SUCH PURPOSES. (D) ELECTRONIC MONITORING OF A PRINCIPAL'S LOCATION MAY BE FOR A MAXI- MUM PERIOD OF SIXTY DAYS, AND MAY BE RENEWED FOR SUCH PERIOD, AFTER NOTICE, AN OPPORTUNITY TO BE HEARD AND A DE NOVO, INDIVIDUALIZED DETER- MINATION IN ACCORDANCE WITH THIS SUBDIVISION, WHICH SHALL BE EXPLAINED ON THE RECORD OR IN WRITING. A DEFENDANT SUBJECT TO ELECTRONIC LOCATION MONITORING UNDER THIS SUBDIVISION SHALL BE CONSIDERED HELD OR CONFINED IN CUSTODY FOR PURPOSES OF SECTION 180.80 OF THIS CHAPTER AND SHALL BE CONSIDERED COMMITTED TO THE CUSTODY OF THE SHERIFF FOR PURPOSES OF SECTION 170.70 OF THE CHAP- TER, AS APPLICABLE. 5. IF A PRINCIPAL IS RELEASED UNDER NON-MONETARY CONDITIONS, THE COURT SHALL, ON THE RECORD AND IN AN INDIVIDUALIZED WRITTEN DOCUMENT PROVIDED TO THE PRINCIPAL, NOTIFY THE PRINCIPAL, IN PLAIN LANGUAGE AND A MANNER SUFFICIENTLY CLEAR AND SPECIFIC: (A) OF ANY CONDITIONS TO WHICH THE PRINCIPAL IS SUBJECT, TO SERVE AS A GUIDE FOR THE PRINCIPAL'S CONDUCT; AND (B) THAT THE POSSIBLE CONSEQUENCES FOR VIOLATION OF SUCH A CONDITION MAY INCLUDE REVOCATION OF THE SECURING ORDER AND THE ORDERING OF A MORE RESTRICTIVE SECURING ORDER. S. 1509--C 118 A. 2009--C § 7. The criminal procedure law is amended by adding a new section 510.43 to read as follows: § 510.43 COURT APPEARANCES: ADDITIONAL NOTIFICATIONS. THE COURT OR, UPON DIRECTION OF THE COURT, A CERTIFIED PRETRIAL SERVICES AGENCY, SHALL NOTIFY ALL PRINCIPALS RELEASED UNDER NON-MONETARY CONDITIONS AND ON RECOGNIZANCE OF ALL COURT APPEARANCES IN ADVANCE BY TEXT MESSAGE, TELEPHONE CALL, ELECTRONIC MAIL OR FIRST CLASS MAIL. THE CHIEF ADMINISTRATOR OF THE COURTS SHALL, PURSUANT TO SUBDIVISION ONE OF SECTION 10.40 OF THIS CHAPTER, DEVELOP A FORM WHICH SHALL BE OFFERED TO THE PRINCIPAL AT COURT APPEARANCES. ON SUCH FORM, WHICH UPON COMPLETION SHALL BE RETAINED IN THE COURT FILE, THE PRINCIPAL MAY SELECT ONE SUCH PREFERRED MANNER OF NOTICE. § 8. The criminal procedure law is amended by adding a new section 510.45 to read as follows: § 510.45 PRETRIAL SERVICES AGENCIES. 1. THE OFFICE OF COURT ADMINISTRATION SHALL CERTIFY AND REGULARLY REVIEW FOR RECERTIFICATION ONE OR MORE PRETRIAL SERVICES AGENCIES IN EACH COUNTY TO MONITOR PRINCIPALS RELEASED UNDER NON-MONETARY CONDI- TIONS. SUCH OFFICE SHALL MAINTAIN A LISTING ON ITS PUBLIC WEBSITE IDEN- TIFYING BY COUNTY EACH PRETRIAL SERVICES AGENCY SO CERTIFIED IN THE STATE. 2. EVERY SUCH AGENCY SHALL BE A PUBLIC ENTITY UNDER THE SUPERVISION AND CONTROL OF A COUNTY OR MUNICIPALITY OR A NON-PROFIT ENTITY UNDER CONTRACT TO THE COUNTY, MUNICIPALITY OR THE STATE. A COUNTY OR MUNICI- PALITY SHALL BE AUTHORIZED TO ENTER INTO A CONTRACT WITH ANOTHER COUNTY OR MUNICIPALITY IN THE STATE TO MONITOR PRINCIPALS UNDER NON-MONETARY CONDITIONS OF RELEASE IN ITS COUNTY, BUT COUNTIES, MUNICIPALITIES AND THE STATE SHALL NOT CONTRACT WITH ANY PRIVATE FOR-PROFIT ENTITY FOR SUCH PURPOSES. 3. (A) ANY QUESTIONNAIRE, INSTRUMENT OR TOOL USED WITH A PRINCIPAL IN THE PROCESS OF CONSIDERING OR DETERMINING THE PRINCIPAL'S POSSIBLE RELEASE ON RECOGNIZANCE, RELEASE UNDER NON-MONETARY CONDITIONS OR ON BAIL, OR USED WITH A PRINCIPAL IN THE PROCESS OF CONSIDERING OR DETER- MINING A CONDITION OR CONDITIONS OF RELEASE OR MONITORING BY A PRETRIAL SERVICES AGENCY, SHALL BE PROMPTLY MADE AVAILABLE TO THE PRINCIPAL AND THE PRINCIPAL'S COUNSEL UPON WRITTEN REQUEST. ANY SUCH BLANK FORM QUES- TIONNAIRE, INSTRUMENT OR TOOL REGULARLY USED IN THE COUNTY FOR SUCH PURPOSE OR A RELATED PURPOSE SHALL BE MADE AVAILABLE TO ANY PERSON PROMPTLY UPON REQUEST. (B) ANY SUCH QUESTIONNAIRE, INSTRUMENT OR TOOL USED TO INFORM DETERMI- NATIONS ON RELEASE OR CONDITIONS OF RELEASE SHALL BE: (I) DESIGNED AND IMPLEMENTED IN A WAY THAT ENSURES THE RESULTS ARE FREE FROM DISCRIMINATION ON THE BASIS OF RACE, NATIONAL ORIGIN, SEX, OR ANY OTHER PROTECTED CLASS; AND (II) EMPIRICALLY VALIDATED AND REGULARLY REVALIDATED, WITH SUCH VALI- DATION AND REVALIDATION STUDIES AND ALL UNDERLYING DATA, EXCEPT PERSONAL IDENTIFYING INFORMATION FOR ANY DEFENDANT, PUBLICLY AVAILABLE UPON REQUEST. 4. SUPERVISION BY A PRE-TRIAL SERVICES AGENCY MAY BE ORDERED AS A NON-MONETARY CONDITION PURSUANT TO THIS TITLE ONLY IF THE COURT FINDS, AFTER NOTICE, AN OPPORTUNITY TO BE HEARD AND AN INDIVIDUALIZED DETERMI- NATION EXPLAINED ON THE RECORD OR IN WRITING, THAT NO OTHER REALISTIC NON-MONETARY CONDITION OR SET OF NON-MONETARY CONDITIONS WILL SUFFICE TO REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT. 5. EACH PRETRIAL SERVICE AGENCY CERTIFIED BY THE OFFICE OF COURT ADMINISTRATION PURSUANT TO THIS SECTION SHALL AT THE END OF EACH YEAR S. 1509--C 119 A. 2009--C PREPARE AND FILE WITH SUCH OFFICE AN ANNUAL REPORT, WHICH THE OFFICE SHALL COMPILE, PUBLISH ON ITS WEBSITE AND MAKE AVAILABLE UPON REQUEST TO MEMBERS OF THE PUBLIC. SUCH REPORTS SHALL NOT INCLUDE ANY PERSONAL IDEN- TIFYING INFORMATION FOR ANY INDIVIDUAL DEFENDANTS. EACH SUCH REPORT, IN ADDITION TO OTHER RELEVANT INFORMATION, SHALL SET FORTH, DISAGGREGATED BY EACH COUNTY SERVED: (A) THE NUMBER OF DEFENDANTS SUPERVISED BY THE AGENCY; (B) THE LENGTH OF TIME (IN MONTHS) EACH SUCH PERSON WAS SUPERVISED BY THE AGENCY PRIOR TO ACQUITTAL, DISMISSAL, RELEASE ON RECOGNIZANCE, REVO- CATION OF RELEASE ON CONDITIONS, AND SENTENCING; (C) THE RACE, ETHNICITY, AGE AND SEX OF EACH PERSON SUPERVISED; (D) THE CRIMES WITH WHICH EACH PERSON SUPERVISED WAS CHARGED; (E) THE NUMBER OF PERSONS SUPERVISED FOR WHOM RELEASE CONDITIONS WERE MODIFIED BY THE COURT, DESCRIBING GENERALLY FOR EACH PERSON OR GROUP OF PERSONS THE TYPE AND NATURE OF THE CONDITION OR CONDITIONS ADDED OR REMOVED; (F) THE NUMBER OF PERSONS SUPERVISED FOR WHOM RELEASE UNDER CONDITIONS WAS REVOKED BY THE COURT, AND THE BASIS FOR SUCH REVOCATIONS; AND (G) THE COURT DISPOSITION IN EACH SUPERVISED CASE, INCLUDING SENTENC- ING INFORMATION. § 9. Section 510.50 of the criminal procedure law is amended to read as follows: § 510.50 Enforcement of securing order. 1. When the attendance of a principal confined in the custody of the sheriff is required at the criminal action or proceeding at a particular time and place, the court may compel such attendance by directing the sheriff to produce [him] THE PRINCIPAL at such time and place. If the principal is at liberty on [his] THE PRINCIPAL'S own recognizance OR NON-MONETARY CONDITIONS or on bail, [his] THE PRINCIPAL'S attendance may be achieved or compelled by various methods, including notification and the issuance of a bench warrant, prescribed by law in provisions governing such matters with respect to the particular kind of action or proceeding involved. 2. EXCEPT WHEN THE PRINCIPAL IS CHARGED WITH A NEW CRIME WHILE AT LIBERTY, ABSENT RELEVANT, CREDIBLE EVIDENCE DEMONSTRATING THAT A PRINCI- PAL'S FAILURE TO APPEAR FOR A SCHEDULED COURT APPEARANCE WAS WILLFUL, THE COURT, PRIOR TO ISSUING A BENCH WARRANT FOR A FAILURE TO APPEAR FOR A SCHEDULED COURT APPEARANCE, SHALL PROVIDE AT LEAST FORTY-EIGHT HOURS NOTICE TO THE PRINCIPAL OR THE PRINCIPAL'S COUNSEL THAT THE PRINCIPAL IS REQUIRED TO APPEAR, IN ORDER TO GIVE THE PRINCIPAL AN OPPORTUNITY TO APPEAR VOLUNTARILY. § 10. Paragraph (b) of subdivision 2 of section 520.10 of the criminal procedure law, as amended by chapter 784 of the laws of 1972, is amended to read as follows: (b) The court [may] SHALL direct that the bail be posted in any one of [two] THREE or more of the forms specified in subdivision one OF THIS SECTION, designated in the alternative, and may designate different amounts varying with the forms[;], EXCEPT THAT ONE OF THE FORMS SHALL BE EITHER AN UNSECURED OR PARTIALLY SECURED SURETY BOND, AS SELECTED BY THE COURT. § 11. Section 530.10 of the criminal procedure law is amended to read as follows: § 530.10 Order of recognizance RELEASE UNDER NON-MONETARY CONDITIONS or bail; in general. Under circumstances prescribed in this article, a court, upon applica- tion of a defendant charged with or convicted of an offense, is required S. 1509--C 120 A. 2009--C [or authorized to order bail or recognizance] TO ISSUE A SECURING ORDER for [the release or prospective release of] such defendant during the pendency of either: 1. A criminal action based upon such charge; or 2. An appeal taken by the defendant from a judgment of conviction or a sentence or from an order of an intermediate appellate court affirming or modifying a judgment of conviction or a sentence. § 12. Subdivision 4 of section 530.11 of the criminal procedure law, as added by chapter 186 of the laws of 1997, is amended to read as follows: 4. When a person is arrested for an alleged family offense or an alleged violation of an order of protection or temporary order of protection or arrested pursuant to a warrant issued by the supreme or family court, and the supreme or family court, as applicable, is not in session, such person shall be brought before a local criminal court in the county of arrest or in the county in which such warrant is return- able pursuant to article one hundred twenty of this chapter. Such local criminal court may issue any order authorized under subdivision eleven of section 530.12 of this article, section one hundred fifty-four-d or one hundred fifty-five of the family court act or subdivision three-b of section two hundred forty or subdivision two-a of section two hundred fifty-two of the domestic relations law, in addition to discharging other arraignment responsibilities as set forth in this chapter. In making such order, the local criminal court shall consider DE NOVO the [bail] recommendation AND SECURING ORDER, if any, made by the supreme or family court as indicated on the warrant or certificate of warrant. Unless the petitioner or complainant requests otherwise, the court, in addition to scheduling further criminal proceedings, if any, regarding such alleged family offense or violation allegation, shall make such matter returnable in the supreme or family court, as applicable, on the next day such court is in session. § 13. Paragraph (a) of subdivision 8 of section 530.13 of the criminal procedure law, as added by chapter 388 of the laws of 1984, is amended to read as follows: (a) revoke an order of recognizance, RELEASE UNDER NON-MONETARY CONDI- TIONS or bail and commit the defendant to custody; or § 14. The opening paragraph of subdivision 1 of section 530.13 of the criminal procedure law, as amended by chapter 137 of the laws of 2007, is amended to read as follows: When any criminal action is pending, and the court has not issued a temporary order of protection pursuant to section 530.12 of this arti- cle, the court, in addition to the other powers conferred upon it by this chapter, may for good cause shown issue a temporary order of protection in conjunction with any securing order [committing the defendant to the custody of the sheriff or as a condition of a pre-trial release, or as a condition of release on bail] or an adjournment in contemplation of dismissal. In addition to any other conditions, such an order may require that the defendant: § 15. Subdivision 11 of section 530.12 of the criminal procedure law, as amended by chapter 498 of the laws of 1993, the opening paragraph as amended by chapter 597 of the laws of 1998, paragraph (a) as amended by chapter 222 of the laws of 1994, paragraph (d) as amended by chapter 644 of the laws of 1996, is amended to read as follows: 11. If a defendant is brought before the court for failure to obey any lawful order issued under this section, or an order of protection issued by a court of competent jurisdiction in another state, territorial or S. 1509--C 121 A. 2009--C tribal jurisdiction, and if, after hearing, the court is satisfied by competent proof that the defendant has willfully failed to obey any such order, the court may: (a) revoke an order of recognizance OR RELEASE UNDER NON-MONETARY CONDITIONS or revoke an order of bail or order forfeiture of such bail and commit the defendant to custody; or (b) restore the case to the calendar when there has been an adjourn- ment in contemplation of dismissal and commit the defendant to custody; or (c) revoke a conditional discharge in accordance with section 410.70 of this chapter and impose probation supervision or impose a sentence of imprisonment in accordance with the penal law based on the original conviction; or (d) revoke probation in accordance with section 410.70 of this chapter and impose a sentence of imprisonment in accordance with the penal law based on the original conviction. In addition, if the act which consti- tutes the violation of the order of protection or temporary order of protection is a crime or a violation the defendant may be charged with and tried for that crime or violation. § 16. Section 530.20 of the criminal procedure law, as amended by chapter 531 of the laws of 1975, subparagraph (ii) of paragraph (b) of subdivision 2 as amended by chapter 218 of the laws of 1979, is amended to read as follows: § 530.20 [Order of recognizance or bail;] SECURING ORDER by local crimi- nal court when action is pending therein. When a criminal action is pending in a local criminal court, such court, upon application of a defendant, [must or may order recognizance or bail] SHALL PROCEED as follows: 1. [When the defendant is charged, by information, simplified informa- tion, prosecutor's information or misdemeanor complaint, with an offense or offenses of less than felony grade only, the court must order recog- nizance or bail.] (A) IN CASES OTHER THAN AS DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION THE COURT SHALL RELEASE THE PRINCIPAL PENDING TRIAL ON THE PRINCIPAL'S OWN RECOGNIZANCE, UNLESS THE COURT FINDS ON THE RECORD OR IN WRITING THAT RELEASE ON THE PRINCIPAL'S OWN RECOGNIZANCE WILL NOT REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT. IN SUCH INSTANCES, THE COURT SHALL RELEASE THE PRINCIPAL UNDER NON-MONETARY CONDITIONS, SELECTING THE LEAST RESTRICTIVE ALTERNATIVE AND CONDITIONS THAT WILL REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT. THE COURT SHALL EXPLAIN ITS CHOICE OF ALTERNATIVE AND CONDITIONS ON THE RECORD OR IN WRITING. (B) WHERE THE PRINCIPAL STANDS CHARGED WITH A QUALIFYING OFFENSE, THE COURT, UNLESS OTHERWISE PROHIBITED BY LAW, MAY IN ITS DISCRETION RELEASE THE PRINCIPAL PENDING TRIAL ON THE PRINCIPAL'S OWN RECOGNIZANCE OR UNDER NON-MONETARY CONDITIONS, FIX BAIL, OR, WHERE THE DEFENDANT IS CHARGED WITH A QUALIFYING OFFENSE WHICH IS A FELONY, THE COURT MAY COMMIT THE PRINCIPAL TO THE CUSTODY OF THE SHERIFF. THE COURT SHALL EXPLAIN ITS CHOICE OF RELEASE, RELEASE WITH CONDITIONS, BAIL OR REMAND ON THE RECORD OR IN WRITING. A PRINCIPAL STANDS CHARGED WITH A QUALIFYING OFFENSE WHEN HE OR SHE STANDS CHARGED WITH: (I) A FELONY ENUMERATED IN SECTION 70.02 OF THE PENAL LAW, OTHER THAN BURGLARY IN THE SECOND DEGREE AS DEFINED IN SUBDIVISION TWO OF SECTION 140.25 OF THE PENAL LAW OR ROBBERY IN THE SECOND DEGREE AS DEFINED IN SUBDIVISION ONE OF SECTION 160.10 OF THE PENAL LAW; (II) A CRIME INVOLVING WITNESS INTIMIDATION UNDER SECTION 215.15 OF THE PENAL LAW; S. 1509--C 122 A. 2009--C (III) A CRIME INVOLVING WITNESS TAMPERING UNDER SECTION 215.11, 215.12 OR 215.13 OF THE PENAL LAW; (IV) A CLASS A FELONY DEFINED IN THE PENAL LAW, OTHER THAN IN ARTICLE TWO HUNDRED TWENTY OF SUCH LAW WITH THE EXCEPTION OF SECTION 220.77 OF SUCH LAW; (V) A FELONY SEX OFFENSE DEFINED IN SECTION 70.80 OF THE PENAL LAW OR A CRIME INVOLVING INCEST AS DEFINED IN SECTION 255.25, 255.26 OR 255.27 OF SUCH LAW, OR A MISDEMEANOR DEFINED IN ARTICLE ONE HUNDRED THIRTY OF SUCH LAW; (VI) CONSPIRACY IN THE SECOND DEGREE AS DEFINED IN SECTION 105.15 OF THE PENAL LAW, WHERE THE UNDERLYING ALLEGATION OF SUCH CHARGE IS THAT THE DEFENDANT CONSPIRED TO COMMIT A CLASS A FELONY DEFINED IN ARTICLE ONE HUNDRED TWENTY-FIVE OF THE PENAL LAW; (VII) MONEY LAUNDERING IN SUPPORT OF TERRORISM IN THE FIRST DEGREE AS DEFINED IN SECTION 470.24 OF THE PENAL LAW; MONEY LAUNDERING IN SUPPORT OF TERRORISM IN THE SECOND DEGREE AS DEFINED IN SECTION 470.23 OF THE PENAL LAW; OR A FELONY CRIME OF TERRORISM AS DEFINED IN ARTICLE FOUR HUNDRED NINETY OF THE PENAL LAW, OTHER THAN THE CRIME DEFINED IN SECTION 490.20 OF SUCH LAW; (VIII) CRIMINAL CONTEMPT IN THE SECOND DEGREE AS DEFINED IN SUBDIVI- SION THREE OF SECTION 215.50 OF THE PENAL LAW, CRIMINAL CONTEMPT IN THE FIRST DEGREE AS DEFINED IN SUBDIVISION (B), (C) OR (D) OF SECTION 215.51 OF THE PENAL LAW OR AGGRAVATED CRIMINAL CONTEMPT AS DEFINED IN SECTION 215.52 OF THE PENAL LAW, AND THE UNDERLYING ALLEGATION OF SUCH CHARGE OF CRIMINAL CONTEMPT IN THE SECOND DEGREE, CRIMINAL CONTEMPT IN THE FIRST DEGREE OR AGGRAVATED CRIMINAL CONTEMPT IS THAT THE DEFENDANT VIOLATED A DULY SERVED ORDER OF PROTECTION WHERE THE PROTECTED PARTY IS A MEMBER OF THE DEFENDANT'S SAME FAMILY OR HOUSEHOLD AS DEFINED IN SUBDIVISION ONE OF SECTION 530.11 OF THIS ARTICLE; OR (IX) FACILITATING A SEXUAL PERFORMANCE BY A CHILD WITH A CONTROLLED SUBSTANCE OR ALCOHOL AS DEFINED IN SECTION 263.30 OF THE PENAL LAW, USE OF A CHILD IN A SEXUAL PERFORMANCE AS DEFINED IN SECTION 263.05 OF THE PENAL LAW OR LURING A CHILD AS DEFINED IN SUBDIVISION ONE OF SECTION 120.70 OF THE PENAL LAW. (D) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION, WITH RESPECT TO ANY CHARGE FOR WHICH BAIL OR REMAND IS NOT ORDERED, AND FOR WHICH THE COURT WOULD NOT OR COULD NOT OTHERWISE REQUIRE BAIL OR REMAND, A DEFENDANT MAY, AT ANY TIME, REQUEST THAT THE COURT SET BAIL IN A NOMINAL AMOUNT REQUESTED BY THE DEFENDANT IN THE FORM SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION 520.10 OF THIS TITLE; IF THE COURT IS SATISFIED THAT THE REQUEST IS VOLUNTARY, THE COURT SHALL SET SUCH BAIL IN SUCH AMOUNT. 2. When the defendant is charged, by felony complaint, with a felony, the court may, in its discretion, order recognizance, RELEASE UNDER NON-MONETARY CONDITIONS, or, WHERE AUTHORIZED, bail OR COMMIT THE DEFENDANT TO THE CUSTODY OF THE SHERIFF except as otherwise provided in SUBDIVISION ONE OF THIS SECTION OR this subdivision: (a) A city court, a town court or a village court may not order recog- nizance or bail when (i) the defendant is charged with a class A felony, or (ii) [it appears that] the defendant has two previous felony convictions; (b) No local criminal court may order recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or bail with respect to a defendant charged with a felony unless and until: (i) The district attorney has been heard in the matter or, after knowledge or notice of the application and reasonable opportunity to be S. 1509--C 123 A. 2009--C heard, has failed to appear at the proceeding or has otherwise waived his right to do so; and (ii) The court [has] AND COUNSEL FOR THE DEFENDANT HAVE been furnished with a report of the division of criminal justice services concerning the defendant's criminal record, if any, or with a police department report with respect to the defendant's prior arrest AND CONVICTION record, IF ANY. If neither report is available, the court, with the consent of the district attorney, may dispense with this requirement; provided, however, that in an emergency, including but not limited to a substantial impairment in the ability of such division or police depart- ment to timely furnish such report, such consent shall not be required if, for reasons stated on the record, the court deems it unnecessary. When the court has been furnished with any such report or record, it shall furnish a copy thereof to counsel for the defendant or, if the defendant is not represented by counsel, to the defendant. § 17. The section heading and subdivisions 1 and 2 of section 530.30 of the criminal procedure law, subdivision 2 as amended by chapter 762 of the laws of 1971, are amended to read as follows: Order of recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or bail; by superior court judge when action is pending in local crimi- nal court. 1. When a criminal action is pending in a local criminal court, other than one consisting of a superior court judge sitting as such, a judge of a superior court holding a term thereof in the county, upon applica- tion of a defendant, may order recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or, WHERE AUTHORIZED, bail when such local criminal court: (a) Lacks authority to issue such an order, pursuant to [paragraph (a) of subdivision two] THE RELEVANT PROVISIONS of section 530.20 OF THIS ARTICLE; or (b) Has denied an application for recognizance, RELEASE UNDER NON-MON- ETARY CONDITIONS or bail; or (c) Has fixed bail, WHERE AUTHORIZED, which is excessive; OR (D) HAS SET A SECURING ORDER OF RELEASE UNDER NON-MONETARY CONDITIONS WHICH ARE MORE RESTRICTIVE THAN NECESSARY TO REASONABLY ASSURE THE DEFENDANT'S RETURN TO COURT. In such case, such superior court judge may vacate the order of such local criminal court and release the defendant on [his own] recognizance OR UNDER NON-MONETARY CONDITIONS, or WHERE AUTHORIZED, fix bail in a lesser amount or in a less burdensome form, WHICHEVER ARE THE LEAST RESTRICTIVE ALTERNATIVE AND CONDITIONS THAT WILL REASONABLY ASSURE THE DEFENDANT'S RETURN TO COURT. THE COURT SHALL EXPLAIN ITS CHOICE OF ALTERNATIVE AND CONDITIONS ON THE RECORD OR IN WRITING. 2. Notwithstanding the provisions of subdivision one OF THIS SECTION, when the defendant is charged with a felony in a local criminal court, a superior court judge may not order recognizance, RELEASE UNDER NON-MONE- TARY CONDITIONS or, WHERE AUTHORIZED, bail unless and until the district attorney has had an opportunity to be heard in the matter and such judge [has] AND COUNSEL FOR THE DEFENDANT HAVE been furnished with a report as described in subparagraph (ii) of paragraph (b) of subdivision two of section 530.20 OF THIS ARTICLE. § 18. Section 530.40 of the criminal procedure law, subdivision 3 as amended by chapter 264 of the laws of 2003, and subdivision 4 as amended by chapter 762 of the laws of 1971, is amended to read as follows: § 530.40 Order of recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or bail; by superior court when action is pending therein. S. 1509--C 124 A. 2009--C When a criminal action is pending in a superior court, such court, upon application of a defendant, must or may order recognizance or bail as follows: 1. When the defendant is charged with an offense or offenses of less than felony grade only, the court must, UNLESS OTHERWISE PROVIDED BY LAW, order recognizance or [bail] RELEASE UNDER NON-MONETARY CONDITIONS IN ACCORDANCE WITH THIS SECTION. 2. When the defendant is charged with a felony, the court may, UNLESS OTHERWISE PROVIDED BY LAW in its discretion, order recognizance [or], RELEASE UNDER NON-MONETARY CONDITIONS OR, WHERE AUTHORIZED, bail. In any such case in which an indictment (a) has resulted from an order of a local criminal court holding the defendant for the action of the grand jury, or (b) was filed at a time when a felony complaint charging the same conduct was pending in a local criminal court, and in which such local criminal court or a superior court judge has issued an order of recognizance [or], RELEASE UNDER NON-MONETARY CONDITIONS OR, WHERE AUTHORIZED, bail which is still effective, the superior court's order may be in the form of a direction continuing the effectiveness of the previous order. 3. IN CASES OTHER THAN AS DESCRIBED IN SUBDIVISION FOUR OF THIS SECTION THE COURT SHALL RELEASE THE PRINCIPAL PENDING TRIAL ON THE PRIN- CIPAL'S OWN RECOGNIZANCE, UNLESS THE COURT FINDS ON THE RECORD OR IN WRITING THAT RELEASE ON THE PRINCIPAL'S OWN RECOGNIZANCE WILL NOT REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT. IN SUCH INSTANCES, THE COURT SHALL RELEASE THE PRINCIPAL UNDER NON-MONETARY CONDITIONS, SELECTING THE LEAST RESTRICTIVE ALTERNATIVE AND CONDITIONS THAT WILL REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT. THE COURT SHALL EXPLAIN ITS CHOICE OF ALTERNATIVE AND CONDITIONS ON THE RECORD OR IN WRITING. 4. WHERE THE PRINCIPAL STANDS CHARGED WITH A QUALIFYING OFFENSE, THE COURT, UNLESS OTHERWISE PROHIBITED BY LAW, MAY IN ITS DISCRETION RELEASE THE PRINCIPAL PENDING TRIAL ON THE PRINCIPAL'S OWN RECOGNIZANCE OR UNDER NON-MONETARY CONDITIONS, FIX BAIL, OR, WHERE THE DEFENDANT IS CHARGED WITH A QUALIFYING OFFENSE WHICH IS A FELONY, THE COURT MAY COMMIT THE PRINCIPAL TO THE CUSTODY OF THE SHERIFF. THE COURT SHALL EXPLAIN ITS CHOICE OF RELEASE, RELEASE WITH CONDITIONS, BAIL OR REMAND ON THE RECORD OR IN WRITING. A PRINCIPAL STANDS CHARGED WITH A QUALIFYING OFFENSE FOR THE PURPOSES OF THIS SUBDIVISION WHEN HE OR SHE STANDS CHARGED WITH: (A) A FELONY ENUMERATED IN SECTION 70.02 OF THE PENAL LAW, OTHER THAN BURGLARY IN THE SECOND DEGREE AS DEFINED IN SUBDIVISION TWO OF SECTION 140.25 OF THE PENAL LAW OR ROBBERY IN THE SECOND DEGREE AS DEFINED IN SUBDIVISION ONE OF SECTION 160.10 OF THE PENAL LAW; (B) A CRIME INVOLVING WITNESS INTIMIDATION UNDER SECTION 215.15 OF THE PENAL LAW; (C) A CRIME INVOLVING WITNESS TAMPERING UNDER SECTION 215.11, 215.12 OR 215.13 OF THE PENAL LAW; (D) A CLASS A FELONY DEFINED IN THE PENAL LAW, OTHER THAN IN ARTICLE TWO HUNDRED TWENTY OF SUCH LAW WITH THE EXCEPTION OF SECTION 220.77 OF SUCH LAW; (E) A FELONY SEX OFFENSE DEFINED IN SECTION 70.80 OF THE PENAL LAW OR A CRIME INVOLVING INCEST AS DEFINED IN SECTION 255.25, 255.26 OR 255.27 OF SUCH LAW, OR A MISDEMEANOR DEFINED IN ARTICLE ONE HUNDRED THIRTY OF SUCH LAW; (F) CONSPIRACY IN THE SECOND DEGREE AS DEFINED IN SECTION 105.15 OF THE PENAL LAW, WHERE THE UNDERLYING ALLEGATION OF SUCH CHARGE IS THAT S. 1509--C 125 A. 2009--C THE DEFENDANT CONSPIRED TO COMMIT A CLASS A FELONY DEFINED IN ARTICLE ONE HUNDRED TWENTY-FIVE OF THE PENAL LAW; (G) MONEY LAUNDERING IN SUPPORT OF TERRORISM IN THE FIRST DEGREE AS DEFINED IN SECTION 470.24 OF THE PENAL LAW; MONEY LAUNDERING IN SUPPORT OF TERRORISM IN THE SECOND DEGREE AS DEFINED IN SECTION 470.23 OF THE PENAL LAW; OR A FELONY CRIME OF TERRORISM AS DEFINED IN ARTICLE FOUR HUNDRED NINETY OF THE PENAL LAW, OTHER THAN THE CRIME DEFINED IN SECTION 490.20 OF SUCH LAW; (H) CRIMINAL CONTEMPT IN THE SECOND DEGREE AS DEFINED IN SUBDIVISION THREE OF SECTION 215.50 OF THE PENAL LAW, CRIMINAL CONTEMPT IN THE FIRST DEGREE AS DEFINED IN SUBDIVISION (B), (C) OR (D) OF SECTION 215.51 OF THE PENAL LAW OR AGGRAVATED CRIMINAL CONTEMPT AS DEFINED IN SECTION 215.52 OF THE PENAL LAW, AND THE UNDERLYING ALLEGATION OF SUCH CHARGE OF CRIMINAL CONTEMPT IN THE SECOND DEGREE, CRIMINAL CONTEMPT IN THE FIRST DEGREE OR AGGRAVATED CRIMINAL CONTEMPT IS THAT THE DEFENDANT VIOLATED A DULY SERVED ORDER OF PROTECTION WHERE THE PROTECTED PARTY IS A MEMBER OF THE DEFENDANT'S SAME FAMILY OR HOUSEHOLD AS DEFINED IN SUBDIVISION ONE OF SECTION 530.11 OF THIS ARTICLE; OR (I) FACILITATING A SEXUAL PERFORMANCE BY A CHILD WITH A CONTROLLED SUBSTANCE OR ALCOHOL AS DEFINED IN SECTION 263.30 OF THE PENAL LAW, USE OF A CHILD IN A SEXUAL PERFORMANCE AS DEFINED IN SECTION 263.05 OF THE PENAL LAW OR LURING A CHILD AS DEFINED IN SUBDIVISION ONE OF SECTION 120.70 OF THE PENAL LAW. 5. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS THREE AND FOUR OF THIS SECTION, WITH RESPECT TO ANY CHARGE FOR WHICH BAIL OR REMAND IS NOT ORDERED, AND FOR WHICH THE COURT WOULD NOT OR COULD NOT OTHERWISE REQUIRE BAIL OR REMAND, A DEFENDANT MAY, AT ANY TIME, REQUEST THAT THE COURT SET BAIL IN A NOMINAL AMOUNT REQUESTED BY THE DEFENDANT IN THE FORM SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION 520.10 OF THIS TITLE; IF THE COURT IS SATISFIED THAT THE REQUEST IS VOLUNTARY, THE COURT SHALL SET SUCH BAIL IN SUCH AMOUNT. 6. Notwithstanding the provisions of [subdivision two] SUBDIVISIONS TWO, THREE AND FOUR OF THIS SECTION, a superior court may not order recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or, WHERE AUTHOR- IZED, bail, or permit a defendant to remain at liberty pursuant to an existing order, after [he] THE DEFENDANT has been convicted of either: (a) a class A felony or (b) any class B or class C felony AS defined in article one hundred thirty of the penal law committed or attempted to be committed by a person eighteen years of age or older against a person less than eighteen years of age. In either case the court must commit or remand the defendant to the custody of the sheriff. [4.] 7. Notwithstanding the provisions of [subdivision two] SUBDIVI- SIONS TWO, THREE AND FOUR OF THIS SECTION, a superior court may not order recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or, WHERE AUTHORIZED, bail when the defendant is charged with a felony unless and until the district attorney has had an opportunity to be heard in the matter and such court [has] AND COUNSEL FOR THE DEFENDANT HAVE been furnished with a report as described in subparagraph (ii) of paragraph (b) of subdivision two of section 530.20 OF THIS ARTICLE. § 19. Subdivision 1 of section 530.45 of the criminal procedure law, as amended by chapter 264 of the laws of 2003, is amended to read as follows: 1. When the defendant is at liberty in the course of a criminal action as a result of a prior order of recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or bail and the court revokes such order and then [either], WHERE AUTHORIZED, fixes no bail or fixes bail in a greater amount or in S. 1509--C 126 A. 2009--C a more burdensome form than was previously fixed and remands or commits defendant to the custody of the sheriff, OR ISSUES A MORE RESTRICTIVE SECURING ORDER, a judge designated in subdivision two OF THIS SECTION, upon application of the defendant following conviction of an offense other than a class A felony or a class B or class C felony offense AS defined in article one hundred thirty of the penal law committed or attempted to be committed by a person eighteen years of age or older against a person less than eighteen years of age, and before sentencing, may issue a securing order and [either] release THE defendant on [his] THE DEFENDANT'S own recognizance, RELEASE THE DEFENDANT UNDER NON-MONE- TARY CONDITIONS, or, WHERE AUTHORIZED, fix bail[,] or fix bail in a lesser amount or in a less burdensome form, OR ISSUE A LESS RESTRICTIVE SECURING ORDER, than fixed by the court in which the conviction was entered. § 20. Section 530.60 of the criminal procedure law, subdivision 1 as amended by chapter 565 of the laws of 2011, subdivision 2 as added by chapter 788 of the laws of 1981 and paragraph (a) of subdivision 2 as amended by chapter 794 of the laws of 1986, is amended to read as follows: § 530.60 [Order of recognizance or bail; revocation thereof] CERTAIN MODIFICATIONS OF A SECURING ORDER. 1. Whenever in the course of a criminal action or proceeding a defend- ant is at liberty as a result of an order of recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or bail issued pursuant to this chapter, and the court considers it necessary to review such order, [it] WHETHER DUE TO A MOTION BY THE PEOPLE OR OTHERWISE, THE COURT may, and EXCEPT AS PROVIDED IN SUBDIVISION TWO OF SECTION 510.50 OF THIS TITLE CONCERNING A FAILURE TO APPEAR IN COURT, by a bench warrant if necessary, require the defend- ant to appear before the court. Upon such appearance, the court, for good cause shown, may revoke the order of recognizance, RELEASE UNDER NON-MONETARY CONDITIONS, or bail. If the defendant is entitled to recog- nizance, RELEASE UNDER NON-MONETARY CONDITIONS, or bail as a matter of right, the court must issue another such order. If [he or she] THE DEFENDANT is not, the court may either issue such an order or commit the defendant to the custody of the sheriff IN ACCORDANCE WITH THIS SECTION. Where the defendant is committed to the custody of the sheriff and is held on a felony complaint, a new period as provided in section 180.80 of this chapter shall commence to run from the time of the defendant's commitment under this subdivision. 2. (a) Whenever in the course of a criminal action or proceeding a defendant charged with the commission of a felony is at liberty as a result of an order of recognizance, RELEASE UNDER NON-MONETARY CONDI- TIONS or bail issued pursuant to this article it shall be grounds for revoking such order that the court finds reasonable cause to believe the defendant committed one or more specified class A or violent felony offenses or intimidated a victim or witness in violation of [sections] SECTION 215.15, 215.16 or 215.17 of the penal law while at liberty. (B) EXCEPT AS PROVIDED IN PARAGRAPH (A) OF THIS SUBDIVISION OR ANY OTHER LAW, WHENEVER IN THE COURSE OF A CRIMINAL ACTION OR PROCEEDING A DEFENDANT CHARGED WITH THE COMMISSION OF AN OFFENSE IS AT LIBERTY AS A RESULT OF AN ORDER OF RECOGNIZANCE, RELEASE UNDER NON-MONETARY CONDI- TIONS OR BAIL ISSUED PURSUANT TO THIS ARTICLE IT SHALL BE GROUNDS FOR REVOKING SUCH ORDER AND FIXING BAIL IN SUCH CRIMINAL ACTION OR PROCEED- ING WHEN THE COURT HAS FOUND, BY CLEAR AND CONVINCING EVIDENCE, THAT THE DEFENDANT: S. 1509--C 127 A. 2009--C (I) PERSISTENTLY AND WILLFULLY FAILED TO APPEAR AFTER NOTICE OF SCHED- ULED APPEARANCES IN THE CASE BEFORE THE COURT; OR (II) VIOLATED AN ORDER OF PROTECTION IN THE MANNER PROHIBITED BY SUBDIVISION (B), (C) OR (D) OF SECTION 215.51 OF THE PENAL LAW WHILE AT LIBERTY; OR (III) STANDS CHARGED IN SUCH CRIMINAL ACTION OR PROCEEDING WITH A MISDEMEANOR OR VIOLATION AND, AFTER BEING SO CHARGED, INTIMIDATED A VICTIM OR WITNESS IN VIOLATION OF SECTION 215.15, 215.16 OR 215.17 OF THE PENAL LAW OR TAMPERED WITH A WITNESS IN VIOLATION OF SECTION 215.11, 215.12 OR 215.13 OF THE PENAL LAW, LAW WHILE AT LIBERTY; OR (IV) STANDS CHARGED IN SUCH ACTION OR PROCEEDING WITH A FELONY AND, AFTER BEING SO CHARGED, COMMITTED A FELONY WHILE AT LIBERTY. (C) Before revoking an order of recognizance, RELEASE UNDER NON-MONE- TARY CONDITIONS, or bail pursuant to this subdivision, the court must hold a hearing and shall receive any relevant, admissible evidence not legally privileged. The defendant may cross-examine witnesses and may present relevant, admissible evidence on his own behalf. Such hearing may be consolidated with, and conducted at the same time as, a felony hearing conducted pursuant to article one hundred eighty of this chap- ter. A transcript of testimony taken before the grand jury upon presen- tation of the subsequent offense shall be admissible as evidence during the hearing. The district attorney may move to introduce grand jury testimony of a witness in lieu of that witness' appearance at the hear- ing. [(b)] (D) Revocation of an order of recognizance, RELEASE UNDER NON- MONETARY CONDITIONS or bail and A NEW SECURING ORDER FIXING BAIL OR commitment, AS SPECIFIED IN THIS PARAGRAPH AND pursuant to this subdivi- sion shall be for the following periods[, either]: (I) UNDER PARAGRAPH (A) OF THIS SUBDIVISION, REVOCATION OF THE ORDER OF RECOGNIZANCE, RELEASE UNDER NON-MONETARY CONDITIONS OR, AS THE CASE MAY BE, BAIL, AND A NEW SECURING ORDER FIXING BAIL OR COMMITTING THE DEFENDANT TO THE CUSTODY OF THE SHERIFF SHALL BE AS FOLLOWS: [(i)] (A) For a period not to exceed ninety days exclusive of any periods of adjournment requested by the defendant; or [(ii)] (B) Until the charges contained within the accusatory instru- ment have been reduced or dismissed such that no count remains which charges the defendant with commission of a felony; or [(iii)] (C) Until reduction or dismissal of the charges contained within the accusatory instrument charging the subsequent offense such that no count remains which charges the defendant with commission of a class A or violent felony offense. Upon expiration of any of the three periods specified within this [paragraph] SUBPARAGRAPH, whichever is shortest, the court may grant or deny release upon an order of bail or recognizance in accordance with the provisions of this article. Upon conviction to an offense the provisions of article five hundred thirty of this chapter shall apply[.]; AND [(c)] (II) UNDER PARAGRAPH (B) OF THIS SUBDIVISION, REVOCATION OF THE ORDER OF RECOGNIZANCE, RELEASE UNDER NON-MONETARY CONDITIONS OR, AS THE CASE MAY BE, BAIL SHALL RESULT IN THE ISSUANCE OF A NEW SECURING ORDER WHICH MAY, IF OTHERWISE AUTHORIZED BY LAW, PERMIT THE PRINCIPAL'S RELEASE ON RECOGNIZANCE OR RELEASE UNDER NON-MONETARY CONDITIONS, BUT SHALL ALSO RENDER THE DEFENDANT ELIGIBLE FOR AN ORDER FIXING BAIL PROVIDED, HOWEVER, THAT IN ACCORDANCE WITH THE PRINCIPLES IN THIS TITLE THE COURT MUST SELECT THE LEAST RESTRICTIVE ALTERNATIVE AND CONDITION OR CONDITIONS THAT WILL REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT. S. 1509--C 128 A. 2009--C NOTHING IN THIS SUBPARAGRAPH SHALL BE INTERPRETED AS SHORTENING THE PERIOD OF DETENTION, OR REQUIRING OR AUTHORIZING ANY LESS RESTRICTIVE FORM OF A SECURING ORDER, WHICH MAY BE IMPOSED PURSUANT TO ANY OTHER LAW. (E) Notwithstanding the provisions of paragraph (a) OR (B) of this subdivision a defendant, against whom a felony complaint has been filed which charges the defendant with commission of a class A or violent felony offense OR VIOLATION OF SECTION 215.15, 215.16 OR 215.17 OF THE PENAL LAW committed while he was at liberty as specified therein, may be committed to the custody of the sheriff pending a revocation hearing for a period not to exceed seventy-two hours. An additional period not to exceed seventy-two hours may be granted by the court upon application of the district attorney upon a showing of good cause or where the failure to commence the hearing was due to the defendant's request or occurred with his consent. Such good cause must consist of some compelling fact or circumstance which precluded conducting the hearing within the initial prescribed period. § 21. Paragraph (a) of subdivision 9 of section 216.05 of the criminal procedure law, as amended by chapter 258 of the laws of 2015, is amended to read as follows: (a) If at any time during the defendant's participation in the judi- cial diversion program, the court has reasonable grounds to believe that the defendant has violated a release condition IN AN IMPORTANT RESPECT or has WILLFULLY failed to appear before the court as requested, the court EXCEPT AS PROVIDED IN SUBDIVISION TWO OF SECTION 510.50 OF THIS CHAPTER REGARDING A FAILURE TO APPEAR, shall direct the defendant to appear or issue a bench warrant to a police officer or an appropriate peace officer directing him or her to take the defendant into custody and bring the defendant before the court without unnecessary delay; provided, however, that under no circumstances shall a defendant who requires treatment for opioid abuse or dependence be deemed to have violated a release condition on the basis of his or her participation in medically prescribed drug treatments under the care of a health care professional licensed or certified under title eight of the education law, acting within his or her lawful scope of practice. The RELEVANT provisions of [subdivision one of] section 530.60 of this chapter relat- ing to [revocation of recognizance or bail] ISSUANCE OF SECURING ORDERS shall apply to such proceedings under this subdivision. § 22. The opening paragraph of section 240.44 of the criminal proce- dure law, as added by chapter 558 of the laws of 1982, is amended to read as follows: Subject to a protective order, at a pre-trial hearing held in a crim- inal court at which a witness is called to testify, each party, [at the conclusion] PRIOR TO THE COMMENCEMENT of the direct examination of each of its witnesses, shall, upon request of the other party, make available to that party to the extent not previously disclosed: § 23. Section 410.60 of the criminal procedure law, as amended by chapter 652 of the laws of 2008, is amended to read as follows: § 410.60 Appearance before court. A person who has been taken into custody pursuant to section 410.40 or section 410.50 of this article for violation of a condition of a sentence of probation or a sentence of conditional discharge must forth- with be brought before the court that imposed the sentence. Where a violation of probation petition and report has been filed and the person has not been taken into custody nor has a warrant been issued, an initial court appearance shall occur within ten business days of the S. 1509--C 129 A. 2009--C court's issuance of a notice to appear. If the court has reasonable cause to believe that such person has violated a condition of the sentence, it may commit [him] SUCH PERSON to the custody of the sheriff [or], fix bail, RELEASE SUCH PERSON UNDER NON-MONETARY CONDITIONS or release such person on [his] SUCH PERSON'S own recognizance for future appearance at a hearing to be held in accordance with section 410.70 of this article. If the court does not have reasonable cause to believe that such person has violated a condition of the sentence, it must direct that [he] SUCH PERSON be released. § 24. Subdivision 3 of section 620.50 of the criminal procedure law is amended to read as follows: 3. A material witness order must be executed as follows: (a) If the bail is posted and approved by the court, the witness must, as provided in subdivision [three] TWO of section 510.40 OF THIS PART, be released and be permitted to remain at liberty; provided that, where the bail is posted by a person other than the witness himself, he may not be so released except upon his signed written consent thereto; (b) If the bail is not posted, or if though posted it is not approved by the court, the witness must, as provided in subdivision [three] TWO of section 510.40 OF THIS PART, be committed to the custody of the sher- iff. § 25. This act shall take effect on January 1, 2020. PART KKK Section 1. Section 30.30 of the criminal procedure law, as added by chapter 184 of the laws of 1972, paragraph (a) of subdivision 3 as amended by chapter 93 of the laws of 2006, paragraph (a) of subdivision 4 as amended by chapter 558 of the laws of 1982, paragraph (c) of subdi- vision 4 as amended by chapter 631 of the laws of 1996, paragraph (h) of subdivision 4 as added by chapter 837 of the laws of 1986, paragraph (i) of subdivision 4 as added by chapter 446 of the laws of 1993, paragraph (j) of subdivision 4 as added by chapter 222 of the laws of 1994, para- graph (b) of subdivision 5 as amended by chapter 109 of the laws of 1982, paragraphs (e) and (f) of subdivision 5 as added by chapter 209 of the laws of 1990, is amended to read as follows: § 30.30 Speedy trial; time limitations. 1. Except as otherwise provided in subdivision three OF THIS SECTION, a motion made pursuant to paragraph (e) of subdivision one of section 170.30 or paragraph (g) of subdivision one of section 210.20 OF THIS CHAPTER must be granted where the people are not ready for trial within: (a) six months of the commencement of a criminal action wherein a defendant is accused of one or more offenses, at least one of which is a felony; (b) ninety days of the commencement of a criminal action wherein a defendant is accused of one or more offenses, at least one of which is a misdemeanor punishable by a sentence of imprisonment of more than three months and none of which is a felony; (c) sixty days of the commencement of a criminal action wherein the defendant is accused of one or more offenses, at least one of which is a misdemeanor punishable by a sentence of imprisonment of not more than three months and none of which is a crime punishable by a sentence of imprisonment of more than three months; OR (d) thirty days of the commencement of a criminal action wherein the defendant is accused of one or more offenses, at least one of which is a violation and none of which is a crime. S. 1509--C 130 A. 2009--C (E) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM OFFENSE SHALL INCLUDE VEHICLE AND TRAFFIC LAW INFRACTIONS. 2. Except as provided in subdivision three OF THIS SECTION, where a defendant has been committed to the custody of the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES in a criminal action he OR SHE must be released on bail or on his OR HER own recognizance, upon such conditions as may be just and reasonable, if the people are not ready for trial in that criminal action within: (a) ninety days from the commencement of his OR HER commitment to the custody of the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES in a criminal action wherein the defendant is accused of one or more offenses, at least one of which is a felony; (b) thirty days from the commencement of his OR HER commitment to the custody of the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES in a criminal action wherein the defendant is accused of one or more offenses, at least one of which is a misdemeanor punishable by a sentence of imprisonment of more than three months and none of which is a felony; (c) fifteen days from the commencement of his OR HER commitment to the custody of the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES in a criminal action wherein the defendant is accused of one or more offenses, at least one of which is a misdemeanor punishable by a sentence of imprisonment of not more than three months and none of which is a crime punishable by a sentence of imprisonment of more than three months; OR (d) five days from the commencement of his OR HER commitment to the custody of the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES in a criminal action wherein the defendant is accused of one or more offenses, at least one of which is a violation and none of which is a crime. (E) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM OFFENSE SHALL INCLUDE VEHICLE AND TRAFFIC LAW INFRACTIONS. 3. (a) Subdivisions one and two OF THIS SECTION do not apply to a criminal action wherein the defendant is accused of an offense defined in sections 125.10, 125.15, 125.20, 125.25, 125.26 and 125.27 of the penal law. (b) A motion made pursuant to subdivisions one or two OF THIS SECTION upon expiration of the specified period may be denied where the people are not ready for trial if the people were ready for trial prior to the expiration of the specified period and their present unreadiness is due to some exceptional fact or circumstance, including, but not limited to, the sudden unavailability of evidence material to the people's case, when the district attorney has exercised due diligence to obtain such evidence and there are reasonable grounds to believe that such evidence will become available in a reasonable period. (c) A motion made pursuant to subdivision two OF THIS SECTION shall not: (i) apply to any defendant who is serving a term of imprisonment for another offense; (ii) require the release from custody of any defendant who is also being held in custody pending trial of another criminal charge as to which the applicable period has not yet elapsed; (iii) prevent the redetention of or otherwise apply to any defendant who, after being released from custody pursuant to this section or otherwise, is charged with another crime or violates the conditions on S. 1509--C 131 A. 2009--C which he has been released, by failing to appear at a judicial proceed- ing at which his presence is required or otherwise. 4. In computing the time within which the people must be ready for trial pursuant to subdivisions one and two OF THIS SECTION, the follow- ing periods must be excluded: (a) a reasonable period of delay resulting from other proceedings concerning the defendant, including but not limited to: proceedings for the determination of competency and the period during which defendant is incompetent to stand trial; demand to produce; request for a bill of particulars; pre-trial motions; appeals; trial of other charges; and the period during which such matters are under consideration by the court; or (b) the period of delay resulting from a continuance granted by the court at the request of, or with the consent of, the defendant or his OR HER counsel. The court [must] MAY grant such a continuance only if it is satisfied that postponement is in the interest of justice, taking into account the public interest in the prompt dispositions of criminal charges. A defendant without counsel must not be deemed to have consented to a continuance unless he OR SHE has been advised by the court of his OR HER rights under these rules and the effect of his consent, WHICH MUST BE DONE ON THE RECORD IN OPEN COURT; or (c) (i) the period of delay resulting from the absence or unavailabil- ity of the defendant. A defendant must be considered absent whenever his location is unknown and he is attempting to avoid apprehension or prose- cution, or his location cannot be determined by due diligence. A defend- ant must be considered unavailable whenever his location is known but his presence for trial cannot be obtained by due diligence; or (ii) where the defendant has either escaped from custody or has failed to appear when required after having previously been released on bail or on his own recognizance, and provided the defendant is not in custody on another matter, the period extending from the day the court issues a bench warrant pursuant to section 530.70 OF THIS CHAPTER because of the defendant's failure to appear in court when required, to the day the defendant subsequently appears in the court pursuant to a bench warrant or voluntarily or otherwise; or (d) a reasonable period of delay when the defendant is joined for trial with a co-defendant as to whom the time for trial pursuant to this section has not run and good cause is not shown for granting a sever- ance; or (e) the period of delay resulting from detention of the defendant in another jurisdiction provided the district attorney is aware of such detention and has been diligent and has made reasonable efforts to obtain the presence of the defendant for trial; or (f) the period during which the defendant is without counsel through no fault of the court; except when the defendant is proceeding as his own attorney with the permission of the court; or (g) other periods of delay occasioned by exceptional circumstances, including but not limited to, the period of delay resulting from a continuance granted at the request of a district attorney if (i) the continuance is granted because of the unavailability of evidence materi- al to the people's case, when the district attorney has exercised due diligence to obtain such evidence and there are reasonable grounds to believe that such evidence will become available in a reasonable period; or (ii) the continuance is granted to allow the district attorney addi- tional time to prepare the people's case and additional time is justi- fied by the exceptional circumstances of the case. ANY SUCH EXCLUSION S. 1509--C 132 A. 2009--C WHEN A STATEMENT OF UNREADINESS HAS FOLLOWED A STATEMENT OF READINESS MADE BY THE PEOPLE MUST BE EVALUATED BY THE COURT AFTER INQUIRY ON THE RECORD AS TO THE REASONS FOR THE PEOPLE'S UNREADINESS AND SHALL ONLY BE APPROVED UPON A SHOWING OF SUFFICIENT SUPPORTING FACTS; OR (h) the period during which an action has been adjourned in contem- plation of dismissal pursuant to sections 170.55, 170.56 and 215.10 of this chapter[.]; OR (i) [The] THE period prior to the defendant's actual appearance for arraignment in a situation in which the defendant has been directed to appear by the district attorney pursuant to subdivision three of section 120.20 or subdivision three of section 210.10[.] OF THIS CHAPTER; OR (j) the period during which a family offense is before a family court until such time as an accusatory instrument or indictment is filed against the defendant alleging a crime constituting a family offense, as such term is defined in section 530.11 of this chapter. 5. WHENEVER PURSUANT TO THIS SECTION A PROSECUTOR STATES OR OTHERWISE PROVIDES NOTICE THAT THE PEOPLE ARE READY FOR TRIAL, THE COURT SHALL MAKE INQUIRY ON THE RECORD AS TO THEIR ACTUAL READINESS. IF, AFTER CONDUCTING ITS INQUIRY, THE COURT DETERMINES THAT THE PEOPLE ARE NOT READY TO PROCEED TO TRIAL, THE PROSECUTOR'S STATEMENT OR NOTICE OF READ- INESS SHALL NOT BE VALID FOR PURPOSES OF THIS SECTION. ANY STATEMENT OF TRIAL READINESS MUST BE ACCOMPANIED OR PRECEDED BY A CERTIFICATION OF GOOD FAITH COMPLIANCE WITH THE DISCLOSURE REQUIREMENTS OF SECTION 245.20 OF THIS CHAPTER AND THE DEFENSE SHALL BE AFFORDED AN OPPORTUNITY TO BE HEARD ON THE RECORD AS TO WHETHER THE DISCLOSURE REQUIREMENTS HAVE BEEN MET. THIS SUBDIVISION SHALL NOT APPLY TO CASES WHERE THE DEFENSE HAS WAIVED DISCLOSURE REQUIREMENTS. 5-A. UPON A LOCAL CRIMINAL COURT ACCUSATORY INSTRUMENT, A STATEMENT OF READINESS SHALL NOT BE VALID UNLESS THE PROSECUTING ATTORNEY CERTIFIES THAT ALL COUNTS CHARGED IN THE ACCUSATORY INSTRUMENT MEET THE REQUIRE- MENTS OF SECTIONS 100.15 AND 100.40 OF THIS CHAPTER AND THOSE COUNTS NOT MEETING THE REQUIREMENTS OF SECTIONS 100.15 AND 100.40 OF THIS CHAPTER HAVE BEEN DISMISSED. 6. AN ORDER FINALLY DENYING A MOTION TO DISMISS PURSUANT TO SUBDIVI- SION ONE OF THIS SECTION SHALL BE REVIEWABLE UPON AN APPEAL FROM AN ENSUING JUDGMENT OF CONVICTION NOTWITHSTANDING THE FACT THAT SUCH JUDG- MENT IS ENTERED UPON A PLEA OF GUILTY. 7. For purposes of this section, (a) where the defendant is to be tried following the withdrawal of the plea of guilty or is to be retried following a mistrial, an order for a new trial or an appeal or collat- eral attack, the criminal action and the commitment to the custody of the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES, if any, must be deemed to have commenced on the date the withdrawal of the plea of guilty or the date the order occasioning a retrial becomes final; (b) where a defendant has been served with an appearance ticket, the criminal action must be deemed to have commenced on the date the defend- ant first appears in a local criminal court in response to the ticket; (c) where a criminal action is commenced by the filing of a felony complaint, and thereafter, in the course of the same criminal action either the felony complaint is replaced with or converted to an informa- tion, prosecutor's information or misdemeanor complaint pursuant to article [180] ONE HUNDRED EIGHTY OF THIS CHAPTER or a prosecutor's information is filed pursuant to section 190.70 OF THIS CHAPTER, the period applicable for the purposes of subdivision one must be the period applicable to the charges in the new accusatory instrument, calculated from the date of the filing of such new accusatory instrument; provided, S. 1509--C 133 A. 2009--C however, that when the aggregate of such period and the period of time, excluding the periods provided in subdivision four, already elapsed from the date of the filing of the felony complaint to the date of the filing of the new accusatory instrument exceeds six months, the period applica- ble to the charges in the felony complaint must remain applicable and continue as if the new accusatory instrument had not been filed; (d) where a criminal action is commenced by the filing of a felony complaint, and thereafter, in the course of the same criminal action either the felony complaint is replaced with or converted to an informa- tion, prosecutor's information or misdemeanor complaint pursuant to article [180] ONE HUNDRED EIGHTY OF THIS CHAPTER or a prosecutor's information is filed pursuant to section 190.70 OF THIS CHAPTER, the period applicable for the purposes of subdivision two OF THIS SECTION must be the period applicable to the charges in the new accusatory instrument, calculated from the date of the filing of such new accusato- ry instrument; provided, however, that when the aggregate of such period and the period of time, excluding the periods provided in subdivision four OF THIS SECTION, already elapsed from the date of the filing of the felony complaint to the date of the filing of the new accusatory instru- ment exceeds ninety days, the period applicable to the charges in the felony complaint must remain applicable and continue as if the new accu- satory instrument had not been filed. (e) where a count of an indictment is reduced to charge only a misde- meanor or petty offense and a reduced indictment or a prosecutor's information is filed pursuant to subdivisions one-a and six of section 210.20 OF THIS CHAPTER, the period applicable for the purposes of subdi- vision one of this section must be the period applicable to the charges in the new accusatory instrument, calculated from the date of the filing of such new accusatory instrument; provided, however, that when the aggregate of such period and the period of time, excluding the periods provided in subdivision four of this section, already elapsed from the date of the filing of the indictment to the date of the filing of the new accusatory instrument exceeds six months, the period applicable to the charges in the indictment must remain applicable and continue as if the new accusatory instrument had not been filed; (f) where a count of an indictment is reduced to charge only a misde- meanor or petty offense and a reduced indictment or a prosecutor's information is filed pursuant to subdivisions one-a and six of section 210.20 OF THIS CHAPTER, the period applicable for the purposes of subdi- vision two of this section must be the period applicable to the charges in the new accusatory instrument, calculated from the date of the filing of such new accusatory instrument; provided, however, that when the aggregate of such period and the period of time, excluding the periods provided in subdivision four of this section, already elapsed from the date of the filing of the indictment to the date of the filing of the new accusatory instrument exceeds ninety days, the period applicable to the charges in the indictment must remain applicable and continue as if the new accusatory instrument had not been filed. [6.] 8. The procedural rules prescribed in subdivisions one through seven of section 210.45 OF THIS CHAPTER with respect to a motion to dismiss an indictment are [also] NOT applicable to a motion made pursu- ant to subdivision two OF THIS SECTION. IF, UPON ORAL ARGUMENT, A TIME PERIOD IS IN DISPUTE, THE COURT MUST PROMPTLY CONDUCT A HEARING IN WHICH THE PEOPLE MUST PROVE THAT THE TIME PERIOD IS EXCLUDABLE. § 2. This act shall take effect January 1, 2020. S. 1509--C 134 A. 2009--C PART LLL Section 1. Article 240 of the criminal procedure law is REPEALED. § 2. The criminal procedure law is amended by adding a new article 245 to read as follows: ARTICLE 245 DISCOVERY SECTION 245.10 TIMING OF DISCOVERY. 245.20 AUTOMATIC DISCOVERY. 245.25 DISCLOSURE PRIOR TO CERTAIN GUILTY PLEAS. 245.30 COURT ORDERS FOR PRESERVATION, ACCESS OR DISCOVERY. 245.35 COURT ORDERED PROCEDURES TO FACILITATE COMPLIANCE. 245.40 NON-TESTIMONIAL EVIDENCE FROM THE DEFENDANT. 245.45 DNA COMPARISON ORDER. 245.50 CERTIFICATES OF COMPLIANCE; READINESS FOR TRIAL. 245.55 FLOW OF INFORMATION. 245.60 CONTINUING DUTY TO DISCLOSE. 245.65 WORK PRODUCT. 245.70 PROTECTIVE ORDERS. 245.75 WAIVER OF DISCOVERY BY DEFENDANT. 245.80 REMEDIES OR SANCTIONS FOR NON-COMPLIANCE. 245.85 ADMISSIBILITY OF DISCOVERY. § 245.10 TIMING OF DISCOVERY. 1. (A) THE PROSECUTION SHALL PERFORM ITS INITIAL DISCOVERY OBLIGATIONS UNDER SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE AS SOON AS PRAC- TICABLE BUT NOT LATER THAN FIFTEEN CALENDAR DAYS AFTER THE DEFENDANT'S ARRAIGNMENT ON AN INDICTMENT, SUPERIOR COURT INFORMATION, PROSECUTOR'S INFORMATION, INFORMATION, SIMPLIFIED INFORMATION, MISDEMEANOR COMPLAINT OR FELONY COMPLAINT. PORTIONS OF MATERIALS CLAIMED TO BE NON-DISCOVERA- BLE MAY BE WITHHELD PENDING A DETERMINATION AND RULING OF THE COURT UNDER SECTION 245.70 OF THIS ARTICLE; BUT THE DEFENDANT SHALL BE NOTI- FIED IN WRITING THAT INFORMATION HAS NOT BEEN DISCLOSED UNDER A PARTIC- ULAR SUBDIVISION OF SUCH SECTION, AND THE DISCOVERABLE PORTIONS OF SUCH MATERIALS SHALL BE DISCLOSED TO THE EXTENT PRACTICABLE. WHEN THE DISCOVERABLE MATERIALS ARE EXCEPTIONALLY VOLUMINOUS OR, DESPITE DILI- GENT, GOOD FAITH EFFORTS, ARE OTHERWISE NOT IN THE ACTUAL POSSESSION OF THE PROSECUTION, THE TIME PERIOD IN THIS PARAGRAPH MAY BE STAYED BY UP TO AN ADDITIONAL THIRTY CALENDAR DAYS WITHOUT NEED FOR A MOTION PURSUANT TO SUBDIVISION TWO OF SECTION 245.70 OF THIS ARTICLE. (B) THE PROSECUTION SHALL PERFORM ITS SUPPLEMENTAL DISCOVERY OBLI- GATIONS UNDER SUBDIVISION THREE OF SECTION 245.20 OF THIS ARTICLE AS SOON AS PRACTICABLE BUT NOT LATER THAN FIFTEEN CALENDAR DAYS PRIOR TO THE FIRST SCHEDULED TRIAL DATE. (C) THE PROSECUTION SHALL DISCLOSE STATEMENTS OF THE DEFENDANT AS DESCRIBED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE TO ANY DEFENDANT WHO HAS BEEN ARRAIGNED IN A LOCAL CRIMINAL COURT UPON A CURRENTLY UNDISPOSED OF FELONY COMPLAINT CHARGING AN OFFENSE WHICH IS A SUBJECT OF A PROSPECTIVE OR PENDING GRAND JURY PROCEEDING, NO LATER THAN FORTY-EIGHT HOURS BEFORE THE TIME SCHEDULED FOR THE DEFENDANT TO TESTIFY AT A GRAND JURY PROCEEDING PURSUANT TO SUBDIVISION FIVE OF SECTION 190.50 OF THIS PART. 2. DEFENDANT'S PERFORMANCE OF OBLIGATIONS. THE DEFENDANT SHALL PERFORM HIS OR HER DISCOVERY OBLIGATIONS UNDER SUBDIVISION FOUR OF SECTION 245.20 OF THIS ARTICLE NOT LATER THAN THIRTY CALENDAR DAYS AFTER BEING SERVED WITH THE PROSECUTION'S CERTIFICATE OF COMPLIANCE PURSUANT TO SUBDIVISION ONE OF SECTION 245.50 OF THIS ARTICLE, EXCEPT THAT PORTIONS S. 1509--C 135 A. 2009--C OF MATERIALS CLAIMED TO BE NON-DISCOVERABLE MAY BE WITHHELD PENDING A DETERMINATION AND RULING OF THE COURT UNDER SECTION 245.70 OF THIS ARTI- CLE; BUT THE PROSECUTION MUST BE NOTIFIED IN WRITING THAT INFORMATION HAS NOT BEEN DISCLOSED UNDER A PARTICULAR SECTION. § 245.20 AUTOMATIC DISCOVERY. 1. INITIAL DISCOVERY FOR THE DEFENDANT. THE PROSECUTION SHALL DISCLOSE TO THE DEFENDANT, AND PERMIT THE DEFENDANT TO DISCOVER, INSPECT, COPY, PHOTOGRAPH AND TEST, ALL ITEMS AND INFORMATION THAT RELATE TO THE SUBJECT MATTER OF THE CASE AND ARE IN THE POSSESSION, CUSTODY OR CONTROL OF THE PROSECUTION OR PERSONS UNDER THE PROSECUTION'S DIRECTION OR CONTROL, INCLUDING BUT NOT LIMITED TO: (A) ALL WRITTEN OR RECORDED STATEMENTS, AND THE SUBSTANCE OF ALL ORAL STATEMENTS, MADE BY THE DEFENDANT OR A CO-DEFENDANT TO A PUBLIC SERVANT ENGAGED IN LAW ENFORCEMENT ACTIVITY OR TO A PERSON THEN ACTING UNDER HIS OR HER DIRECTION OR IN COOPERATION WITH HIM OR HER. (B) ALL TRANSCRIPTS OF THE TESTIMONY OF A PERSON WHO HAS TESTIFIED BEFORE A GRAND JURY, INCLUDING BUT NOT LIMITED TO THE DEFENDANT OR A CO-DEFENDANT. IF IN THE EXERCISE OF REASONABLE DILIGENCE, AND DUE TO THE LIMITED AVAILABILITY OF TRANSCRIPTION RESOURCES, A TRANSCRIPT IS UNAVAILABLE FOR DISCLOSURE WITHIN THE TIME PERIOD SPECIFIED IN SUBDIVI- SION ONE OF SECTION 245.10 OF THIS ARTICLE, SUCH TIME PERIOD MAY BE STAYED BY UP TO AN ADDITIONAL THIRTY CALENDAR DAYS WITHOUT NEED FOR A MOTION PURSUANT TO SUBDIVISION TWO OF SECTION 245.70 OF THIS ARTICLE; EXCEPT THAT SUCH DISCLOSURE SHALL BE MADE AS SOON AS PRACTICABLE AND NOT LATER THAN THIRTY CALENDAR DAYS BEFORE THE FIRST SCHEDULED TRIAL DATE, UNLESS AN ORDER IS OBTAINED PURSUANT TO SECTION 245.70 OF THIS ARTICLE. WHEN THE COURT IS REQUIRED TO REVIEW GRAND JURY TRANSCRIPTS, THE PROSE- CUTION SHALL DISCLOSE SUCH TRANSCRIPTS TO THE COURT EXPEDITIOUSLY UPON RECEIPT BY THE PROSECUTOR, NOTWITHSTANDING THE OTHERWISE-APPLICABLE TIME PERIODS FOR DISCLOSURE IN THIS ARTICLE. (C) THE NAMES AND ADEQUATE CONTACT INFORMATION FOR ALL PERSONS OTHER THAN LAW ENFORCEMENT PERSONNEL WHOM THE PROSECUTOR KNOWS TO HAVE EVIDENCE OR INFORMATION RELEVANT TO ANY OFFENSE CHARGED OR TO ANY POTEN- TIAL DEFENSE THERETO, INCLUDING A DESIGNATION BY THE PROSECUTOR AS TO WHICH OF THOSE PERSONS MAY BE CALLED AS WITNESSES. NOTHING IN THIS PARA- GRAPH SHALL REQUIRE THE DISCLOSURE OF PHYSICAL ADDRESSES; PROVIDED, HOWEVER, UPON A MOTION AND GOOD CAUSE SHOWN THE COURT MAY DIRECT THE DISCLOSURE OF A PHYSICAL ADDRESS. INFORMATION UNDER THIS SUBDIVISION RELATING TO A CONFIDENTIAL INFORMANT MAY BE WITHHELD, AND REDACTED FROM DISCOVERY MATERIALS, WITHOUT NEED FOR A MOTION PURSUANT TO SECTION 245.70 OF THIS ARTICLE; BUT THE PROSECUTION SHALL NOTIFY THE DEFENDANT IN WRITING THAT SUCH INFORMATION HAS NOT BEEN DISCLOSED, UNLESS THE COURT RULES OTHERWISE FOR GOOD CAUSE SHOWN. (D) THE NAME AND WORK AFFILIATION OF ALL LAW ENFORCEMENT PERSONNEL WHOM THE PROSECUTOR KNOWS TO HAVE EVIDENCE OR INFORMATION RELEVANT TO ANY OFFENSE CHARGED OR TO ANY POTENTIAL DEFENSE THERETO, INCLUDING A DESIGNATION BY THE PROSECUTOR AS TO WHICH OF THOSE PERSONS MAY BE CALLED AS WITNESSES. INFORMATION UNDER THIS SUBDIVISION RELATING TO UNDERCOVER PERSONNEL MAY BE WITHHELD, AND REDACTED FROM DISCOVERY MATERIALS, WITH- OUT NEED FOR A MOTION PURSUANT TO SECTION 245.70 OF THIS ARTICLE; BUT THE PROSECUTION SHALL NOTIFY THE DEFENDANT IN WRITING THAT SUCH INFORMA- TION HAS NOT BEEN DISCLOSED, UNLESS THE COURT RULES OTHERWISE FOR GOOD CAUSE SHOWN. (E) ALL STATEMENTS, WRITTEN OR RECORDED OR SUMMARIZED IN ANY WRITING OR RECORDING, MADE BY PERSONS WHO HAVE EVIDENCE OR INFORMATION RELEVANT TO ANY OFFENSE CHARGED OR TO ANY POTENTIAL DEFENSE THERETO, INCLUDING S. 1509--C 136 A. 2009--C ALL POLICE REPORTS, NOTES OF POLICE AND OTHER INVESTIGATORS, AND LAW ENFORCEMENT AGENCY REPORTS. THIS PROVISION ALSO INCLUDES STATEMENTS, WRITTEN OR RECORDED OR SUMMARIZED IN ANY WRITING OR RECORDING, BY PERSONS TO BE CALLED AS WITNESSES AT PRE-TRIAL HEARINGS. (F) EXPERT OPINION EVIDENCE, INCLUDING THE NAME, BUSINESS ADDRESS, CURRENT CURRICULUM VITAE, A LIST OF PUBLICATIONS, AND ALL PROFICIENCY TESTS AND RESULTS ADMINISTERED OR TAKEN WITHIN THE PAST TEN YEARS OF EACH EXPERT WITNESS WHOM THE PROSECUTOR INTENDS TO CALL AS A WITNESS AT TRIAL OR A PRE-TRIAL HEARING, AND ALL REPORTS PREPARED BY THE EXPERT THAT PERTAIN TO THE CASE, OR IF NO REPORT IS PREPARED, A WRITTEN STATE- MENT OF THE FACTS AND OPINIONS TO WHICH THE EXPERT IS EXPECTED TO TESTI- FY AND A SUMMARY OF THE GROUNDS FOR EACH OPINION. THIS PARAGRAPH DOES NOT ALTER OR IN ANY WAY AFFECT THE PROCEDURES, OBLIGATIONS OR RIGHTS SET FORTH IN SECTION 250.10 OF THIS TITLE. IF IN THE EXERCISE OF REASONABLE DILIGENCE THIS INFORMATION IS UNAVAILABLE FOR DISCLOSURE WITHIN THE TIME PERIOD SPECIFIED IN SUBDIVISION ONE OF SECTION 245.10 OF THIS ARTICLE, THAT PERIOD SHALL BE STAYED WITHOUT NEED FOR A MOTION PURSUANT TO SUBDIVISION TWO OF SECTION 245.70 OF THIS ARTICLE; EXCEPT THAT THE PROS- ECUTION SHALL NOTIFY THE DEFENDANT IN WRITING THAT SUCH INFORMATION HAS NOT BEEN DISCLOSED, AND SUCH DISCLOSURE SHALL BE MADE AS SOON AS PRACTI- CABLE AND NOT LATER THAN SIXTY CALENDAR DAYS BEFORE THE FIRST SCHEDULED TRIAL DATE, UNLESS AN ORDER IS OBTAINED PURSUANT TO SECTION 245.70 OF THIS ARTICLE. WHEN THE PROSECUTION'S EXPERT WITNESS IS BEING CALLED IN RESPONSE TO DISCLOSURE OF AN EXPERT WITNESS BY THE DEFENDANT, THE COURT SHALL ALTER A SCHEDULED TRIAL DATE, IF NECESSARY, TO ALLOW THE PROSE- CUTION THIRTY CALENDAR DAYS TO MAKE THE DISCLOSURE AND THE DEFENDANT THIRTY CALENDAR DAYS TO PREPARE AND RESPOND TO THE NEW MATERIALS. (G) ALL TAPES OR OTHER ELECTRONIC RECORDINGS, INCLUDING ALL ELECTRONIC RECORDINGS OF 911 TELEPHONE CALLS MADE OR RECEIVED IN CONNECTION WITH THE ALLEGED CRIMINAL INCIDENT, AND A DESIGNATION BY THE PROSECUTOR AS TO WHICH OF THE RECORDINGS UNDER THIS PARAGRAPH THE PROSECUTION INTENDS TO INTRODUCE AT TRIAL OR A PRE-TRIAL HEARING. IF THE DISCOVERABLE MATERIALS UNDER THIS PARAGRAPH EXCEED TEN HOURS IN TOTAL LENGTH, THE PROSECUTION MAY DISCLOSE ONLY THE RECORDINGS THAT IT INTENDS TO INTRODUCE AT TRIAL OR A PRE-TRIAL HEARING, ALONG WITH A LIST OF THE SOURCE AND APPROXIMATE QUANTITY OF OTHER RECORDINGS AND THEIR GENERAL SUBJECT MATTER IF KNOWN, AND THE DEFENDANT SHALL HAVE THE RIGHT UPON REQUEST TO OBTAIN RECORDINGS NOT PREVIOUSLY DISCLOSED. THE PROSECUTION SHALL DISCLOSE THE REQUESTED MATERIALS AS SOON AS PRACTICABLE AND NOT LESS THAN FIFTEEN CALENDAR DAYS AFTER THE DEFENDANT'S REQUEST, UNLESS AN ORDER IS OBTAINED PURSUANT TO SECTION 245.70 OF THIS ARTICLE. (H) ALL PHOTOGRAPHS AND DRAWINGS MADE OR COMPLETED BY A PUBLIC SERVANT ENGAGED IN LAW ENFORCEMENT ACTIVITY, OR WHICH WERE MADE BY A PERSON WHOM THE PROSECUTOR INTENDS TO CALL AS A WITNESS AT TRIAL OR A PRE-TRIAL HEARING, OR WHICH RELATE TO THE SUBJECT MATTER OF THE CASE. (I) ALL PHOTOGRAPHS, PHOTOCOPIES AND REPRODUCTIONS MADE BY OR AT THE DIRECTION OF LAW ENFORCEMENT PERSONNEL OF ANY PROPERTY PRIOR TO ITS RELEASE PURSUANT TO SECTION 450.10 OF THE PENAL LAW. (J) ALL REPORTS, DOCUMENTS, RECORDS, DATA, CALCULATIONS OR WRITINGS, INCLUDING BUT NOT LIMITED TO PRELIMINARY TESTS AND SCREENING RESULTS AND BENCH NOTES AND ANALYSES PERFORMED OR STORED ELECTRONICALLY, CONCERNING PHYSICAL OR MENTAL EXAMINATIONS, OR SCIENTIFIC TESTS OR EXPERIMENTS OR COMPARISONS, RELATING TO THE CRIMINAL ACTION OR PROCEED- ING WHICH WERE MADE BY OR AT THE REQUEST OR DIRECTION OF A PUBLIC SERV- ANT ENGAGED IN LAW ENFORCEMENT ACTIVITY, OR WHICH WERE MADE BY A PERSON WHOM THE PROSECUTOR INTENDS TO CALL AS A WITNESS AT TRIAL OR A PRE-TRIAL S. 1509--C 137 A. 2009--C HEARING, OR WHICH THE PROSECUTION INTENDS TO INTRODUCE AT TRIAL OR A PRE-TRIAL HEARING. INFORMATION UNDER THIS PARAGRAPH ALSO INCLUDES, BUT IS NOT LIMITED TO, LABORATORY INFORMATION MANAGEMENT SYSTEM RECORDS RELATING TO SUCH MATERIALS, ANY PRELIMINARY OR FINAL FINDINGS OF NON- CONFORMANCE WITH ACCREDITATION, INDUSTRY OR GOVERNMENTAL STANDARDS OR LABORATORY PROTOCOLS, AND ANY CONFLICTING ANALYSES OR RESULTS BY LABORA- TORY PERSONNEL REGARDLESS OF THE LABORATORY'S FINAL ANALYSIS OR RESULTS. IF THE PROSECUTION SUBMITTED ONE OR MORE ITEMS FOR TESTING TO, OR RECEIVED RESULTS FROM, A FORENSIC SCIENCE LABORATORY OR SIMILAR ENTITY NOT UNDER THE PROSECUTION'S DIRECTION OR CONTROL, THE COURT ON MOTION OF A PARTY SHALL ISSUE SUBPOENAS OR ORDERS TO SUCH LABORATORY OR ENTITY TO CAUSE MATERIALS UNDER THIS PARAGRAPH TO BE MADE AVAILABLE FOR DISCLO- SURE. (K) ALL EVIDENCE AND INFORMATION, INCLUDING THAT WHICH IS KNOWN TO POLICE OR OTHER LAW ENFORCEMENT AGENCIES ACTING ON THE GOVERNMENT'S BEHALF IN THE CASE, THAT TENDS TO: (I) NEGATE THE DEFENDANT'S GUILT AS TO A CHARGED OFFENSE; (II) REDUCE THE DEGREE OF OR MITIGATE THE DEFEND- ANT'S CULPABILITY AS TO A CHARGED OFFENSE; (III) SUPPORT A POTENTIAL DEFENSE TO A CHARGED OFFENSE; (IV) IMPEACH THE CREDIBILITY OF A TESTI- FYING PROSECUTION WITNESS; (V) UNDERMINE EVIDENCE OF THE DEFENDANT'S IDENTITY AS A PERPETRATOR OF A CHARGED OFFENSE; (VI) PROVIDE A BASIS FOR A MOTION TO SUPPRESS EVIDENCE; OR (VII) MITIGATE PUNISHMENT. INFORMA- TION UNDER THIS SUBDIVISION SHALL BE DISCLOSED WHETHER OR NOT SUCH INFORMATION IS RECORDED IN TANGIBLE FORM AND IRRESPECTIVE OF WHETHER THE PROSECUTOR CREDITS THE INFORMATION. THE PROSECUTOR SHALL DISCLOSE THE INFORMATION EXPEDITIOUSLY UPON ITS RECEIPT AND SHALL NOT DELAY DISCLO- SURE IF IT IS OBTAINED EARLIER THAN THE TIME PERIOD FOR DISCLOSURE IN SUBDIVISION ONE OF SECTION 245.10 OF THIS ARTICLE. (L) A SUMMARY OF ALL PROMISES, REWARDS AND INDUCEMENTS MADE TO, OR IN FAVOR OF, PERSONS WHO MAY BE CALLED AS WITNESSES, AS WELL AS REQUESTS FOR CONSIDERATION BY PERSONS WHO MAY BE CALLED AS WITNESSES AND COPIES OF ALL DOCUMENTS RELEVANT TO A PROMISE, REWARD OR INDUCEMENT. (M) A LIST OF ALL TANGIBLE OBJECTS OBTAINED FROM, OR ALLEGEDLY POSSESSED BY, THE DEFENDANT OR A CO-DEFENDANT. THE LIST SHALL INCLUDE A DESIGNATION BY THE PROSECUTOR AS TO WHICH OBJECTS WERE PHYSICALLY OR CONSTRUCTIVELY POSSESSED BY THE DEFENDANT AND WERE RECOVERED DURING A SEARCH OR SEIZURE BY A PUBLIC SERVANT OR AN AGENT THEREOF, AND WHICH TANGIBLE OBJECTS WERE RECOVERED BY A PUBLIC SERVANT OR AN AGENT THEREOF AFTER ALLEGEDLY BEING ABANDONED BY THE DEFENDANT. IF THE PROSECUTION INTENDS TO PROVE THE DEFENDANT'S POSSESSION OF ANY TANGIBLE OBJECTS BY MEANS OF A STATUTORY PRESUMPTION OF POSSESSION, IT SHALL DESIGNATE SUCH INTENTION AS TO EACH SUCH OBJECT. IF REASONABLY PRACTICABLE, THE PROSE- CUTION SHALL ALSO DESIGNATE THE LOCATION FROM WHICH EACH TANGIBLE OBJECT WAS RECOVERED. THERE IS ALSO A RIGHT TO INSPECT, COPY, PHOTOGRAPH AND TEST THE LISTED TANGIBLE OBJECTS. (N) WHETHER A SEARCH WARRANT HAS BEEN EXECUTED AND ALL DOCUMENTS RELATING THERETO, INCLUDING BUT NOT LIMITED TO THE WARRANT, THE WARRANT APPLICATION, SUPPORTING AFFIDAVITS, A POLICE INVENTORY OF ALL PROPERTY SEIZED UNDER THE WARRANT, AND A TRANSCRIPT OF ALL TESTIMONY OR OTHER ORAL COMMUNICATIONS OFFERED IN SUPPORT OF THE WARRANT APPLICATION. (O) ALL TANGIBLE PROPERTY THAT RELATES TO THE SUBJECT MATTER OF THE CASE, ALONG WITH A DESIGNATION OF WHICH ITEMS THE PROSECUTION INTENDS TO INTRODUCE IN ITS CASE-IN-CHIEF AT TRIAL OR A PRE-TRIAL HEARING. IF IN THE EXERCISE OF REASONABLE DILIGENCE THE PROSECUTOR HAS NOT FORMED AN INTENTION WITHIN THE TIME PERIOD SPECIFIED IN SUBDIVISION ONE OF SECTION 245.10 OF THIS ARTICLE THAT AN ITEM UNDER THIS SUBDIVISION WILL BE S. 1509--C 138 A. 2009--C INTRODUCED AT TRIAL OR A PRE-TRIAL HEARING, THE PROSECUTION SHALL NOTIFY THE DEFENDANT IN WRITING, AND THE TIME PERIOD IN WHICH TO DESIGNATE ITEMS AS EXHIBITS SHALL BE STAYED WITHOUT NEED FOR A MOTION PURSUANT TO SUBDIVISION TWO OF SECTION 245.70 OF THIS ARTICLE; BUT THE DISCLOSURE SHALL BE MADE AS SOON AS PRACTICABLE AND SUBJECT TO THE CONTINUING DUTY TO DISCLOSE IN SECTION 245.60 OF THIS ARTICLE. (P) A COMPLETE RECORD OF JUDGMENTS OF CONVICTION FOR ALL DEFENDANTS AND ALL PERSONS DESIGNATED AS POTENTIAL PROSECUTION WITNESSES PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION, OTHER THAN THOSE WITNESSES WHO ARE EXPERTS. (Q) WHEN IT IS KNOWN TO THE PROSECUTION, THE EXISTENCE OF ANY PENDING CRIMINAL ACTION AGAINST ALL PERSONS DESIGNATED AS POTENTIAL PROSECUTION WITNESSES PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION. (R) THE APPROXIMATE DATE, TIME AND PLACE OF THE OFFENSE OR OFFENSES CHARGED AND OF THE DEFENDANT'S SEIZURE AND ARREST. (S) IN ANY PROSECUTION ALLEGING A VIOLATION OF THE VEHICLE AND TRAFFIC LAW, WHERE THE DEFENDANT IS CHARGED BY INDICTMENT, SUPERIOR COURT INFOR- MATION, PROSECUTOR'S INFORMATION, INFORMATION, OR SIMPLIFIED INFORMA- TION, ALL RECORDS OF CALIBRATION, CERTIFICATION, INSPECTION, REPAIR OR MAINTENANCE OF MACHINES AND INSTRUMENTS UTILIZED TO PERFORM ANY SCIEN- TIFIC TESTS AND EXPERIMENTS, INCLUDING BUT NOT LIMITED TO ANY TEST OF A PERSON'S BREATH, BLOOD, URINE OR SALIVA, FOR THE PERIOD OF SIX MONTHS PRIOR AND SIX MONTHS AFTER SUCH TEST WAS CONDUCTED, INCLUDING THE RECORDS OF GAS CHROMATOGRAPHY RELATED TO THE CERTIFICATION OF ALL REFER- ENCE STANDARDS AND THE CERTIFICATION CERTIFICATE, IF ANY, HELD BY THE OPERATOR OF THE MACHINE OR INSTRUMENT. THE TIME PERIOD REQUIRED BY SUBDIVISION ONE OF SECTION 245.10 OF THIS ARTICLE SHALL NOT APPLY TO THE DISCLOSURE OF RECORDS CREATED SIX MONTHS AFTER A TEST WAS CONDUCTED, BUT SUCH DISCLOSURE SHALL BE MADE AS SOON AS PRACTICABLE AND IN ANY EVENT, THE EARLIER OF FIFTEEN DAYS FOLLOWING RECEIPT, OR FIFTEEN DAYS BEFORE THE FIRST SCHEDULED TRIAL DATE. (T) IN ANY PROSECUTION ALLEGING A VIOLATION OF SECTION 156.05 OR 156.10 OF THE PENAL LAW, THE TIME, PLACE AND MANNER SUCH VIOLATION OCCURRED. (U) (I) A COPY OF ALL ELECTRONICALLY CREATED OR STORED INFORMATION SEIZED OR OBTAINED BY OR ON BEHALF OF LAW ENFORCEMENT FROM: (A) THE DEFENDANT AS DESCRIBED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH; OR (B) A SOURCE OTHER THAN THE DEFENDANT WHICH RELATES TO THE SUBJECT MATTER OF THE CASE. (II) IF THE ELECTRONICALLY CREATED OR STORED INFORMATION ORIGINATES FROM A DEVICE, ACCOUNT, OR OTHER ELECTRONICALLY STORED SOURCE THAT THE PROSECUTION BELIEVES THE DEFENDANT OWNED, MAINTAINED, OR HAD LAWFUL ACCESS TO AND IS WITHIN THE POSSESSION, CUSTODY OR CONTROL OF THE PROSE- CUTION OR PERSONS UNDER THE PROSECUTION'S DIRECTION OR CONTROL, THE PROSECUTION SHALL PROVIDE A COMPLETE COPY OF THE ELECTRONICALLY CREATED OR STORED INFORMATION FROM THE DEVICE OR ACCOUNT OR OTHER SOURCE. (III) IF POSSESSION OF SUCH ELECTRONICALLY CREATED OR STORED INFORMA- TION WOULD BE A CRIME UNDER NEW YORK STATE OR FEDERAL LAW, THE PROSE- CUTION SHALL MAKE THOSE PORTIONS OF THE ELECTRONICALLY CREATED OR STORED INFORMATION THAT ARE NOT CRIMINAL TO POSSESS AVAILABLE AS SPECIFIED UNDER THIS PARAGRAPH AND SHALL AFFORD COUNSEL FOR THE DEFENDANT ACCESS TO INSPECT CONTRABAND PORTIONS AT A SUPERVISED LOCATION THAT PROVIDES REGULAR AND REASONABLE HOURS FOR SUCH ACCESS, SUCH AS A PROSECUTOR'S OFFICE, POLICE STATION, OR COURT. (IV) THIS PARAGRAPH SHALL NOT BE CONSTRUED TO ALTER OR IN ANY WAY AFFECT THE RIGHT TO BE FREE FROM UNREASONABLE SEARCHES AND SEIZURES OR S. 1509--C 139 A. 2009--C SUCH OTHER RIGHTS A SUSPECT OR DEFENDANT MAY DERIVE FROM THE STATE CONSTITUTION OR THE UNITED STATES CONSTITUTION. IF IN THE EXERCISE OF REASONABLE DILIGENCE THE INFORMATION UNDER THIS PARAGRAPH IS NOT AVAIL- ABLE FOR DISCLOSURE WITHIN THE TIME PERIOD REQUIRED BY SUBDIVISION ONE OF SECTION 245.10 OF THIS ARTICLE, THAT PERIOD SHALL BE STAYED WITHOUT NEED FOR A MOTION PURSUANT TO SUBDIVISION TWO OF SECTION 245.70 OF THIS ARTICLE, EXCEPT THAT THE PROSECUTION SHALL NOTIFY THE DEFENDANT IN WRIT- ING THAT SUCH INFORMATION HAS NOT BEEN DISCLOSED, AND SUCH DISCLOSURE SHALL BE MADE AS SOON AS PRACTICABLE AND NOT LATER THAN FORTY-FIVE CALENDAR DAYS BEFORE THE FIRST SCHEDULED TRIAL DATE, UNLESS AN ORDER IS OBTAINED PURSUANT TO SECTION 245.70 OF THIS ARTICLE. 2. DUTIES OF THE PROSECUTION. THE PROSECUTOR SHALL MAKE A DILIGENT, GOOD FAITH EFFORT TO ASCERTAIN THE EXISTENCE OF MATERIAL OR INFORMATION DISCOVERABLE UNDER SUBDIVISION ONE OF THIS SECTION AND TO CAUSE SUCH MATERIAL OR INFORMATION TO BE MADE AVAILABLE FOR DISCOVERY WHERE IT EXISTS BUT IS NOT WITHIN THE PROSECUTOR'S POSSESSION, CUSTODY OR CONTROL; PROVIDED THAT THE PROSECUTOR SHALL NOT BE REQUIRED TO OBTAIN BY SUBPOENA DUCES TECUM MATERIAL OR INFORMATION WHICH THE DEFENDANT MAY THEREBY OBTAIN. FOR PURPOSES OF SUBDIVISION ONE OF THIS SECTION, ALL ITEMS AND INFORMATION RELATED TO THE PROSECUTION OF A CHARGE IN THE POSSESSION OF ANY NEW YORK STATE OR LOCAL POLICE OR LAW ENFORCEMENT AGENCY SHALL BE DEEMED TO BE IN THE POSSESSION OF THE PROSECUTION. THE PROSECUTION SHALL ALSO IDENTIFY ANY LABORATORY HAVING CONTACT WITH EVIDENCE RELATED TO THE PROSECUTION OF A CHARGE. THIS SUBDIVISION SHALL NOT REQUIRE THE PROSECUTOR TO ASCERTAIN THE EXISTENCE OF WITNESSES NOT KNOWN TO THE POLICE OR ANOTHER LAW ENFORCEMENT AGENCY, OR THE WRITTEN OR RECORDED STATEMENTS THEREOF, UNDER PARAGRAPH (C) OR (E) OF SUBDIVISION ONE OF THIS SECTION. 3. SUPPLEMENTAL DISCOVERY FOR THE DEFENDANT. THE PROSECUTION SHALL DISCLOSE TO THE DEFENDANT A LIST OF ALL MISCONDUCT AND CRIMINAL ACTS OF THE DEFENDANT NOT CHARGED IN THE INDICTMENT, SUPERIOR COURT INFORMATION, PROSECUTOR'S INFORMATION, INFORMATION, OR SIMPLIFIED INFORMATION, WHICH THE PROSECUTION INTENDS TO USE AT TRIAL FOR PURPOSES OF (A) IMPEACHING THE CREDIBILITY OF THE DEFENDANT, OR (B) AS SUBSTANTIVE PROOF OF ANY MATERIAL ISSUE IN THE CASE. IN ADDITION THE PROSECUTION SHALL DESIGNATE WHETHER IT INTENDS TO USE EACH LISTED ACT FOR IMPEACHMENT AND/OR AS SUBSTANTIVE PROOF. 4. RECIPROCAL DISCOVERY FOR THE PROSECUTION. (A) THE DEFENDANT SHALL, SUBJECT TO CONSTITUTIONAL LIMITATIONS, DISCLOSE TO THE PROSECUTION, AND PERMIT THE PROSECUTION TO DISCOVER, INSPECT, COPY OR PHOTOGRAPH, ANY MATERIAL AND RELEVANT EVIDENCE WITHIN THE DEFENDANT'S OR COUNSEL FOR THE DEFENDANT'S POSSESSION OR CONTROL THAT IS DISCOVERABLE UNDER PARAGRAPHS (F), (G), (H), (J), (L) AND (O) OF SUBDIVISION ONE OF THIS SECTION, WHICH THE DEFENDANT INTENDS TO INTRODUCE AT TRIAL OR A PRE-TRIAL HEAR- ING, AND THE NAMES, ADDRESSES, BIRTH DATES, AND ALL STATEMENTS, WRITTEN OR RECORDED OR SUMMARIZED IN ANY WRITING OR RECORDING, OF THOSE PERSONS OTHER THAN THE DEFENDANT WHOM THE DEFENDANT INTENDS TO CALL AS WITNESSES AT TRIAL OR A PRE-TRIAL HEARING. (B) DISCLOSURE OF THE NAME, ADDRESS, BIRTH DATE, AND ALL STATEMENTS, WRITTEN OR RECORDED OR SUMMARIZED IN ANY WRITING OR RECORDING, OF A PERSON WHOM THE DEFENDANT INTENDS TO CALL AS A WITNESS FOR THE SOLE PURPOSE OF IMPEACHING A PROSECUTION WITNESS IS NOT REQUIRED UNTIL AFTER THE PROSECUTION WITNESS HAS TESTIFIED AT TRIAL. (C) IF IN THE EXERCISE OF REASONABLE DILIGENCE THE RECIPROCALLY DISCOVERABLE INFORMATION UNDER PARAGRAPH (F) OR (O) OF SUBDIVISION ONE OF THIS SECTION IS UNAVAILABLE FOR DISCLOSURE WITHIN THE TIME PERIOD S. 1509--C 140 A. 2009--C SPECIFIED IN SUBDIVISION TWO OF SECTION 245.10 OF THIS ARTICLE, SUCH TIME PERIOD SHALL BE STAYED WITHOUT NEED FOR A MOTION PURSUANT TO SUBDI- VISION TWO OF SECTION 245.70 OF THIS ARTICLE; BUT THE DISCLOSURE SHALL BE MADE AS SOON AS PRACTICABLE AND SUBJECT TO THE CONTINUING DUTY TO DISCLOSE IN SECTION 245.60 OF THIS ARTICLE. 5. STAY OF AUTOMATIC DISCOVERY; REMEDIES AND SANCTIONS. SECTION 245.10 AND SUBDIVISIONS ONE, TWO, THREE AND FOUR OF THIS SECTION SHALL HAVE THE FORCE AND EFFECT OF A COURT ORDER, AND FAILURE TO PROVIDE DISCOVERY PURSUANT TO SUCH SECTION OR SUBDIVISION MAY RESULT IN APPLICATION OF ANY REMEDIES OR SANCTIONS PERMITTED FOR NON-COMPLIANCE WITH A COURT ORDER UNDER SECTION 245.80 OF THIS ARTICLE. HOWEVER, IF IN THE JUDGMENT OF EITHER PARTY GOOD CAUSE EXISTS FOR DECLINING TO MAKE ANY OF THE DISCLO- SURES SET FORTH ABOVE, SUCH PARTY MAY MOVE FOR A PROTECTIVE ORDER PURSU- ANT TO SECTION 245.70 OF THIS ARTICLE AND PRODUCTION OF THE ITEM SHALL BE STAYED PENDING A RULING BY THE COURT. THE OPPOSING PARTY SHALL BE NOTIFIED IN WRITING THAT INFORMATION HAS NOT BEEN DISCLOSED UNDER A PARTICULAR SECTION. WHEN SOME PARTS OF MATERIAL OR INFORMATION ARE DISCOVERABLE BUT IN THE JUDGMENT OF A PARTY GOOD CAUSE EXISTS FOR DECLINING TO DISCLOSE OTHER PARTS, THE DISCOVERABLE PARTS SHALL BE DISCLOSED AND THE DISCLOSING PARTY SHALL GIVE NOTICE IN WRITING THAT NON-DISCOVERABLE PARTS HAVE BEEN WITHHELD. 6. REDACTIONS PERMITTED. EITHER PARTY MAY REDACT SOCIAL SECURITY NUMBERS AND TAX NUMBERS FROM DISCLOSURES UNDER THIS ARTICLE. 7. PRESUMPTION OF OPENNESS. THERE SHALL BE A PRESUMPTION IN FAVOR OF DISCLOSURE WHEN INTERPRETING SECTIONS 245.10 AND 245.25, AND SUBDIVISION ONE OF SECTION 245.20, OF THIS ARTICLE. § 245.25 DISCLOSURE PRIOR TO CERTAIN GUILTY PLEAS. 1. PRE-INDICTMENT GUILTY PLEAS. UPON A FELONY COMPLAINT, WHERE THE PROSECUTION HAS MADE A PRE-INDICTMENT GUILTY PLEA OFFER REQUIRING A PLEA TO A CRIME, THE PROSECUTOR MUST DISCLOSE TO THE DEFENSE, AND PERMIT THE DEFENSE TO DISCOVER, INSPECT, COPY, PHOTOGRAPH AND TEST, ALL ITEMS AND INFORMATION THAT WOULD BE DISCOVERABLE PRIOR TO TRIAL UNDER SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE AND ARE IN THE POSSESSION, CUSTODY OR CONTROL OF THE PROSECUTION. THE PROSECUTION SHALL DISCLOSE THE DISCOVERABLE ITEMS AND INFORMATION NOT LESS THAN THREE CALENDAR DAYS PRIOR TO THE EXPIRATION DATE OF ANY GUILTY PLEA OFFER BY THE PROSECUTION OR ANY DEADLINE IMPOSED BY THE COURT FOR ACCEPTANCE OF THE GUILTY PLEA OFFER. IF THE PROSECUTION DOES NOT COMPLY WITH THE REQUIREMENTS OF THIS SUBDIVISION, THEN, ON A DEFENDANT'S MOTION ALLEGING A VIOLATION OF THIS SUBDIVISION, THE COURT MUST CONSIDER THE IMPACT OF ANY VIOLATION ON THE DEFENDANT'S DECISION TO ACCEPT OR REJECT A PLEA OFFER. IF THE COURT FINDS THAT SUCH VIOLATION MATERIALLY AFFECTED THE DEFENDANT'S DECISION, AND IF THE PROSECUTION DECLINES TO REINSTATE THE LAPSED OR WITHDRAWN PLEA OFFER, THE COURT - AS A PRESUMPTIVE MINIMUM SANCTION - MUST PRECLUDE THE ADMISSION AT TRIAL OF ANY EVIDENCE NOT DISCLOSED AS REQUIRED UNDER THIS SUBDIVISION. THE COURT MAY TAKE OTHER APPROPRIATE ACTION AS NECESSARY TO ADDRESS THE NON-COMPLIANCE. THE RIGHTS UNDER THIS SUBDIVISION DO NOT APPLY TO ITEMS OR INFORMATION THAT ARE THE SUBJECT OF A PROTECTIVE ORDER UNDER SECTION 245.70 OF THIS ARTICLE; BUT IF SUCH INFORMATION TENDS TO BE EXCULPATORY, THE COURT SHALL RECONSIDER THE PROTECTIVE ORDER. A DEFENDANT MAY WAIVE HIS OR HER RIGHTS UNDER THIS SUBDIVISION; BUT A GUILTY PLEA OFFER MAY NOT BE CONDITIONED ON SUCH WAIVER. 2. OTHER GUILTY PLEAS. UPON AN INDICTMENT, SUPERIOR COURT INFORMATION, PROSECUTOR'S INFORMATION, INFORMATION, SIMPLIFIED INFORMATION, OR MISDEMEANOR COMPLAINT, WHERE THE PROSECUTION HAS MADE A GUILTY PLEA S. 1509--C 141 A. 2009--C OFFER REQUIRING A PLEA TO A CRIME, THE PROSECUTOR MUST DISCLOSE TO THE DEFENSE, AND PERMIT THE DEFENSE TO DISCOVER, INSPECT, COPY, PHOTOGRAPH AND TEST, ALL ITEMS AND INFORMATION THAT WOULD BE DISCOVERABLE PRIOR TO TRIAL UNDER SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE AND ARE WITHIN THE POSSESSION, CUSTODY OR CONTROL OF THE PROSECUTION. THE PROSE- CUTION SHALL DISCLOSE THE DISCOVERABLE ITEMS AND INFORMATION NOT LESS THAN SEVEN CALENDAR DAYS PRIOR TO THE EXPIRATION DATE OF ANY GUILTY PLEA OFFER BY THE PROSECUTION OR ANY DEADLINE IMPOSED BY THE COURT FOR ACCEPTANCE OF THE GUILTY PLEA OFFER. IF THE PROSECUTION DOES NOT COMPLY WITH THE REQUIREMENTS OF THIS SUBDIVISION, THEN, ON A DEFENDANT'S MOTION ALLEGING A VIOLATION OF THIS SUBDIVISION, THE COURT MUST CONSIDER THE IMPACT OF ANY VIOLATION ON THE DEFENDANT'S DECISION TO ACCEPT OR REJECT A PLEA OFFER. IF THE COURT FINDS THAT SUCH VIOLATION MATERIALLY AFFECTED THE DEFENDANT'S DECISION, AND IF THE PROSECUTION DECLINES TO REINSTATE THE LAPSED OR WITHDRAWN PLEA OFFER, THE COURT - AS A PRESUMPTIVE MINIMUM SANCTION - MUST PRECLUDE THE ADMISSION AT TRIAL OF ANY EVIDENCE NOT DISCLOSED AS REQUIRED UNDER THIS SUBDIVISION. THE COURT MAY TAKE OTHER APPROPRIATE ACTION AS NECESSARY TO ADDRESS THE NON-COMPLIANCE. THE RIGHTS UNDER THIS SUBDIVISION DO NOT APPLY TO ITEMS OR INFORMATION THAT ARE THE SUBJECT OF A PROTECTIVE ORDER UNDER SECTION 245.70 OF THIS ARTI- CLE; BUT IF SUCH INFORMATION TENDS TO BE EXCULPATORY, THE COURT SHALL RECONSIDER THE PROTECTIVE ORDER. A DEFENDANT MAY WAIVE HIS OR HER RIGHTS UNDER THIS SUBDIVISION; BUT A GUILTY PLEA OFFER MAY NOT BE CONDI- TIONED ON SUCH WAIVER. § 245.30 COURT ORDERS FOR PRESERVATION, ACCESS OR DISCOVERY. 1. ORDER TO PRESERVE EVIDENCE. AT ANY TIME, A PARTY MAY MOVE FOR A COURT ORDER TO ANY INDIVIDUAL, AGENCY OR OTHER ENTITY IN POSSESSION, CUSTODY OR CONTROL OF ITEMS WHICH RELATE TO THE SUBJECT MATTER OF THE CASE OR ARE OTHERWISE RELEVANT, REQUIRING THAT SUCH ITEMS BE PRESERVED FOR A SPECIFIED PERIOD OF TIME. THE COURT SHALL HEAR AND RULE UPON SUCH MOTIONS EXPEDITIOUSLY. THE COURT MAY MODIFY OR VACATE SUCH AN ORDER UPON A SHOWING THAT PRESERVATION OF PARTICULAR EVIDENCE WILL CREATE SIGNIFICANT HARDSHIP TO SUCH INDIVIDUAL, AGENCY OR ENTITY, ON CONDITION THAT THE PROBATIVE VALUE OF THAT EVIDENCE IS PRESERVED BY A SPECIFIED ALTERNATIVE MEANS. 2. ORDER TO GRANT ACCESS TO PREMISES. WITHOUT PREJUDICE TO ITS ABILITY TO ISSUE A SUBPOENA PURSUANT TO THIS CHAPTER AND AFTER AN ACCUSATORY INSTRUMENT HAS BEEN FILED, THE DEFENDANT MAY MOVE, UPON NOTICE TO THE PROSECUTION AND ANY IMPACTED INDIVIDUAL, AGENCY, OR ENTITY, FOR A COURT ORDER TO ACCESS A CRIME SCENE OR OTHER PREMISES RELEVANT TO THE SUBJECT MATTER OF THE CASE, REQUIRING THAT COUNSEL FOR THE DEFENDANT BE GRANTED REASONABLE ACCESS TO INSPECT, PHOTOGRAPH, OR MEASURE SUCH CRIME SCENE OR PREMISES, AND THAT THE CONDITION OF THE CRIME SCENE OR PREMISES REMAIN UNCHANGED IN THE INTERIM. THE COURT SHALL CONSIDER DEFENDANT'S EXPRESSED NEED FOR ACCESS TO THE PREMISES INCLUDING THE RISK THAT DEFENDANT WILL BE DEPRIVED OF EVIDENCE OR INFORMATION RELEVANT TO THE CASE, THE POSI- TION OF ANY INDIVIDUAL OR ENTITY WITH POSSESSORY OR OWNERSHIP RIGHTS TO THE PREMISES, THE NATURE OF THE PRIVACY INTEREST AND ANY PERCEIVED OR ACTUAL HARDSHIP OF THE INDIVIDUAL OR ENTITY WITH POSSESSORY OR OWNERSHIP RIGHTS, AND THE POSITION OF THE PROSECUTION WITH RESPECT TO ANY APPLICA- TION FOR ACCESS TO THE PREMISES. THE COURT MAY DENY ACCESS TO THE PREM- ISES WHEN THE PROBATIVE VALUE OF ACCESS TO SUCH LOCATION HAS BEEN OR WILL BE PRESERVED BY SPECIFIED ALTERNATIVE MEANS. IF THE COURT GRANTS ACCESS TO THE PREMISES, THE INDIVIDUAL OR ENTITY WITH OWNERSHIP OR POSSESSORY RIGHTS TO THE PREMISES MAY REQUEST LAW ENFORCEMENT PRESENCE S. 1509--C 142 A. 2009--C AT THE PREMISES WHILE DEFENSE COUNSEL OR A REPRESENTATIVE THEREOF IS PRESENT. 3. DISCRETIONARY DISCOVERY BY ORDER OF THE COURT. THE COURT IN ITS DISCRETION MAY, UPON A SHOWING BY THE DEFENDANT THAT THE REQUEST IS REASONABLE AND THAT THE DEFENDANT IS UNABLE WITHOUT UNDUE HARDSHIP TO OBTAIN THE SUBSTANTIAL EQUIVALENT BY OTHER MEANS, ORDER THE PROSECUTION, OR ANY INDIVIDUAL, AGENCY OR OTHER ENTITY SUBJECT TO THE JURISDICTION OF THE COURT, TO MAKE AVAILABLE FOR DISCLOSURE TO THE DEFENDANT ANY MATERI- AL OR INFORMATION WHICH RELATES TO THE SUBJECT MATTER OF THE CASE AND IS REASONABLY LIKELY TO BE MATERIAL. A MOTION UNDER THIS SUBDIVISION MUST BE ON NOTICE TO ANY PERSON OR ENTITY AFFECTED BY THE ORDER. THE COURT MAY, ON ITS OWN, UPON REQUEST OF ANY PERSON OR ENTITY AFFECTED BY THE ORDER, MODIFY OR VACATE THE ORDER IF COMPLIANCE WOULD BE UNREASONABLE OR WILL CREATE SIGNIFICANT HARDSHIP. FOR GOOD CAUSE SHOWN, THE COURT MAY PERMIT A PARTY SEEKING OR OPPOSING A DISCRETIONARY ORDER OF DISCOVERY UNDER THIS SUBDIVISION, OR ANOTHER AFFECTED PERSON OR ENTITY, TO SUBMIT PAPERS OR TESTIFY ON THE RECORD EX PARTE OR IN CAMERA. FOR GOOD CAUSE SHOWN, ANY SUCH PAPERS AND A TRANSCRIPT OF SUCH TESTIMONY MAY BE SEALED AND SHALL CONSTITUTE A PART OF THE RECORD ON APPEAL. § 245.35 COURT ORDERED PROCEDURES TO FACILITATE COMPLIANCE. TO FACILITATE COMPLIANCE WITH THIS ARTICLE, AND TO REDUCE OR STREAM- LINE LITIGATION OF ANY DISPUTES ABOUT DISCOVERY, THE COURT IN ITS DISCRETION MAY ISSUE AN ORDER: 1. REQUIRING THAT THE PROSECUTOR AND COUNSEL FOR THE DEFENDANT DILI- GENTLY CONFER TO ATTEMPT TO REACH AN ACCOMMODATION AS TO ANY DISPUTE CONCERNING DISCOVERY PRIOR TO SEEKING A RULING FROM THE COURT; 2. REQUIRING A DISCOVERY COMPLIANCE CONFERENCE AT A SPECIFIED TIME PRIOR TO TRIAL BETWEEN THE PROSECUTOR, COUNSEL FOR ALL DEFENDANTS, AND THE COURT OR ITS STAFF; 3. REQUIRING THE PROSECUTION TO FILE AN ADDITIONAL CERTIFICATE OF COMPLIANCE THAT STATES THAT THE PROSECUTOR AND/OR AN APPROPRIATE NAMED AGENT HAS MADE REASONABLE INQUIRIES OF ALL POLICE OFFICERS AND OTHER PERSONS WHO HAVE PARTICIPATED IN INVESTIGATING OR EVALUATING THE CASE ABOUT THE EXISTENCE OF ANY FAVORABLE EVIDENCE OR INFORMATION WITHIN PARAGRAPH (K) OF SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE, INCLUDING SUCH EVIDENCE OR INFORMATION THAT WAS NOT REDUCED TO WRITING OR OTHERWISE MEMORIALIZED OR PRESERVED AS EVIDENCE, AND HAS DISCLOSED ANY SUCH INFORMATION TO THE DEFENDANT; AND/OR 4. REQUIRING OTHER MEASURES OR PROCEEDINGS DESIGNED TO CARRY INTO EFFECT THE GOALS OF THIS ARTICLE. § 245.40 NON-TESTIMONIAL EVIDENCE FROM THE DEFENDANT. 1. AVAILABILITY. AFTER THE FILING OF AN ACCUSATORY INSTRUMENT, AND SUBJECT TO CONSTITUTIONAL LIMITATIONS, THE COURT MAY, UPON MOTION OF THE PROSECUTION SHOWING PROBABLE CAUSE TO BELIEVE THE DEFENDANT HAS COMMITTED THE CRIME, A CLEAR INDICATION THAT RELEVANT MATERIAL EVIDENCE WILL BE FOUND, AND THAT THE METHOD USED TO SECURE SUCH EVIDENCE IS SAFE AND RELIABLE, REQUIRE A DEFENDANT TO PROVIDE NON-TESTIMONIAL EVIDENCE, INCLUDING TO: (A) APPEAR IN A LINEUP; (B) SPEAK FOR IDENTIFICATION BY A WITNESS OR POTENTIAL WITNESS; (C) BE FINGERPRINTED; (D) POSE FOR PHOTOGRAPHS NOT INVOLVING REENACTMENT OF AN EVENT; (E) PERMIT THE TAKING OF SAMPLES OF THE DEFENDANT'S BLOOD, HAIR, AND OTHER MATERIALS OF THE DEFENDANT'S BODY THAT INVOLVES NO UNREASONABLE INTRUSION THEREOF; (F) PROVIDE SPECIMENS OF THE DEFENDANT'S HANDWRITING; AND S. 1509--C 143 A. 2009--C (G) SUBMIT TO A REASONABLE PHYSICAL OR MEDICAL INSPECTION OF THE DEFENDANT'S BODY. 2. LIMITATIONS. THIS SECTION SHALL NOT BE CONSTRUED TO ALTER OR IN ANY WAY AFFECT THE ISSUANCE OF A SIMILAR COURT ORDER, AS MAY BE AUTHORIZED BY LAW, BEFORE THE FILING OF AN ACCUSATORY INSTRUMENT, CONSISTENT WITH SUCH RIGHTS AS THE DEFENDANT MAY DERIVE FROM THE STATE CONSTITUTION OR THE UNITED STATES CONSTITUTION. THIS SECTION SHALL NOT BE CONSTRUED TO ALTER OR IN ANY WAY AFFECT THE ADMINISTRATION OF A CHEMICAL TEST WHERE OTHERWISE AUTHORIZED. AN ORDER PURSUANT TO THIS SECTION MAY BE DENIED, LIMITED OR CONDITIONED AS PROVIDED IN SECTION 245.70 OF THIS ARTICLE. § 245.45 DNA COMPARISON ORDER. WHERE PROPERTY IN THE PROSECUTION'S POSSESSION, CUSTODY, OR CONTROL CONSISTS OF A DEOXYRIBONUCLEIC ACID ("DNA") PROFILE OBTAINED FROM PROBATIVE BIOLOGICAL MATERIAL GATHERED IN CONNECTION WITH THE INVESTI- GATION OF THE CRIME, OR THE DEFENDANT, OR THE PROSECUTION OF THE DEFEND- ANT, AND THE DEFENDANT ESTABLISHES (A) THAT SUCH PROFILE COMPLIES WITH FEDERAL BUREAU OF INVESTIGATION OR STATE REQUIREMENTS, WHICHEVER ARE APPLICABLE AND AS SUCH REQUIREMENTS ARE APPLIED TO LAW ENFORCEMENT AGEN- CIES SEEKING A KEYBOARD SEARCH OR SIMILAR COMPARISON, AND (B) THAT THE DATA MEETS STATE DNA INDEX SYSTEM OR NATIONAL DNA INDEX SYSTEM CRITERIA AS SUCH CRITERIA ARE APPLIED TO LAW ENFORCEMENT AGENCIES SEEKING SUCH A KEYBOARD SEARCH OR SIMILAR COMPARISON, THE COURT MAY, UPON MOTION OF A DEFENDANT AGAINST WHOM AN INDICTMENT, SUPERIOR COURT INFORMATION, PROSECUTOR'S INFORMATION, INFORMATION, OR SIMPLIFIED INFORMATION IS PENDING, ORDER AN ENTITY THAT HAS ACCESS TO THE COMBINED DNA INDEX SYSTEM OR ITS SUCCESSOR SYSTEM TO COMPARE SUCH DNA PROFILE AGAINST DNA DATABANKS BY KEYBOARD SEARCHES, OR A SIMILAR METHOD THAT DOES NOT INVOLVE UPLOADING, UPON NOTICE TO BOTH PARTIES AND THE ENTITY REQUIRED TO PERFORM THE SEARCH, UPON A SHOWING BY THE DEFENDANT THAT SUCH A COMPARISON IS MATERIAL TO THE PRESENTATION OF HIS OR HER DEFENSE AND THAT THE REQUEST IS REASONABLE. FOR PURPOSES OF THIS SECTION, A "KEYBOARD SEARCH" SHALL MEAN A SEARCH OF A DNA PROFILE AGAINST THE DATABANK IN WHICH THE PROFILE THAT IS SEARCHED IS NOT UPLOADED TO OR MAINTAINED IN THE DATABANK. § 245.50 CERTIFICATES OF COMPLIANCE; READINESS FOR TRIAL. 1. BY THE PROSECUTION. WHEN THE PROSECUTION HAS PROVIDED THE DISCOVERY REQUIRED BY SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE, EXCEPT FOR ANY ITEMS OR INFORMATION THAT ARE THE SUBJECT OF AN ORDER PURSUANT TO SECTION 245.70 OF THIS ARTICLE, IT SHALL SERVE UPON THE DEFENDANT AND FILE WITH THE COURT A CERTIFICATE OF COMPLIANCE. THE CERTIFICATE OF COMPLIANCE SHALL STATE THAT, AFTER EXERCISING DUE DILIGENCE AND MAKING REASONABLE INQUIRIES TO ASCERTAIN THE EXISTENCE OF MATERIAL AND INFOR- MATION SUBJECT TO DISCOVERY, THE PROSECUTOR HAS DISCLOSED AND MADE AVAILABLE ALL KNOWN MATERIAL AND INFORMATION SUBJECT TO DISCOVERY. IT SHALL ALSO IDENTIFY THE ITEMS PROVIDED. IF ADDITIONAL DISCOVERY IS SUBSEQUENTLY PROVIDED PRIOR TO TRIAL PURSUANT TO SECTION 245.60 OF THIS ARTICLE, A SUPPLEMENTAL CERTIFICATE SHALL BE SERVED UPON THE DEFENDANT AND FILED WITH THE COURT IDENTIFYING THE ADDITIONAL MATERIAL AND INFOR- MATION PROVIDED. NO ADVERSE CONSEQUENCE TO THE PROSECUTION OR THE PROSE- CUTOR SHALL RESULT FROM THE FILING OF A CERTIFICATE OF COMPLIANCE IN GOOD FAITH; BUT THE COURT MAY GRANT A REMEDY OR SANCTION FOR A DISCOV- ERY VIOLATION AS PROVIDED IN SECTION 245.80 OF THIS ARTICLE. 2. BY THE DEFENDANT. WHEN THE DEFENDANT HAS PROVIDED ALL DISCOVERY REQUIRED BY SUBDIVISION FOUR OF SECTION 245.20 OF THIS ARTICLE, EXCEPT FOR ANY ITEMS OR INFORMATION THAT ARE THE SUBJECT OF AN ORDER PURSUANT TO SECTION 245.70 OF THIS ARTICLE, COUNSEL FOR THE DEFENDANT SHALL SERVE S. 1509--C 144 A. 2009--C UPON THE PROSECUTION AND FILE WITH THE COURT A CERTIFICATE OF COMPLI- ANCE. THE CERTIFICATE SHALL STATE THAT, AFTER EXERCISING DUE DILIGENCE AND MAKING REASONABLE INQUIRIES TO ASCERTAIN THE EXISTENCE OF MATERIAL AND INFORMATION SUBJECT TO DISCOVERY, COUNSEL FOR THE DEFENDANT HAS DISCLOSED AND MADE AVAILABLE ALL KNOWN MATERIAL AND INFORMATION SUBJECT TO DISCOVERY. IT SHALL ALSO IDENTIFY THE ITEMS PROVIDED. IF ADDITIONAL DISCOVERY IS SUBSEQUENTLY PROVIDED PRIOR TO TRIAL PURSUANT TO SECTION 245.60 OF THIS ARTICLE, A SUPPLEMENTAL CERTIFICATE SHALL BE SERVED UPON THE PROSECUTION AND FILED WITH THE COURT IDENTIFYING THE ADDITIONAL MATERIAL AND INFORMATION PROVIDED. NO ADVERSE CONSEQUENCE TO THE DEFENDANT OR COUNSEL FOR THE DEFENDANT SHALL RESULT FROM THE FILING OF A CERTIFICATE OF COMPLIANCE IN GOOD FAITH; BUT THE COURT MAY GRANT A REME- DY OR SANCTION FOR A DISCOVERY VIOLATION AS PROVIDED IN SECTION 245.80 OF THIS ARTICLE. 3. TRIAL READINESS. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, ABSENT AN INDIVIDUALIZED FINDING OF EXCEPTIONAL CIRCUMSTANCES BY THE COURT BEFORE WHICH THE CHARGE IS PENDING, THE PROSECUTION SHALL NOT BE DEEMED READY FOR TRIAL FOR PURPOSES OF SECTION 30.30 OF THIS CHAPTER UNTIL IT HAS FILED A PROPER CERTIFICATE PURSUANT TO SUBDIVISION ONE OF THIS SECTION. § 245.55 FLOW OF INFORMATION. 1. SUFFICIENT COMMUNICATION FOR COMPLIANCE. THE DISTRICT ATTORNEY AND THE ASSISTANT RESPONSIBLE FOR THE CASE, OR, IF THE MATTER IS NOT BEING PROSECUTED BY THE DISTRICT ATTORNEY, THE PROSECUTING AGENCY AND ITS ASSIGNED REPRESENTATIVE, SHALL ENDEAVOR TO ENSURE THAT A FLOW OF INFOR- MATION IS MAINTAINED BETWEEN THE POLICE AND OTHER INVESTIGATIVE PERSON- NEL AND HIS OR HER OFFICE SUFFICIENT TO PLACE WITHIN HIS OR HER POSSESSION OR CONTROL ALL MATERIAL AND INFORMATION PERTINENT TO THE DEFENDANT AND THE OFFENSE OR OFFENSES CHARGED, INCLUDING, BUT NOT LIMIT- ED TO, ANY EVIDENCE OR INFORMATION DISCOVERABLE UNDER PARAGRAPH (K) OF SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE. 2. PROVISION OF LAW ENFORCEMENT AGENCY FILES. ABSENT A COURT ORDER OR A REQUIREMENT THAT DEFENSE COUNSEL OBTAIN A SECURITY CLEARANCE MANDATED BY LAW OR AUTHORIZED GOVERNMENT REGULATION, UPON REQUEST BY THE PROSE- CUTION, EACH NEW YORK STATE AND LOCAL LAW ENFORCEMENT AGENCY SHALL MAKE AVAILABLE TO THE PROSECUTION A COMPLETE COPY OF ITS COMPLETE RECORDS AND FILES RELATED TO THE INVESTIGATION OF THE CASE OR THE PROSECUTION OF THE DEFENDANT FOR COMPLIANCE WITH THIS ARTICLE. 3. 911 TELEPHONE CALL AND POLICE RADIO TRANSMISSION ELECTRONIC RECORDINGS, POLICE WORN BODY CAMERA RECORDINGS AND OTHER POLICE RECORDINGS. (A) WHENEVER AN ELECTRONIC RECORDING OF A 911 TELEPHONE CALL OR A POLICE RADIO TRANSMISSION OR VIDEO OR AUDIO FOOTAGE FROM A POLICE BODY-WORN CAMERA OR OTHER POLICE RECORDING WAS MADE OR RECEIVED IN CONNECTION WITH THE INVESTIGATION OF AN APPARENT CRIMINAL INCIDENT, THE ARRESTING OFFICER OR LEAD DETECTIVE SHALL EXPEDITIOUSLY NOTIFY THE PROSECUTION IN WRITING UPON THE FILING OF AN ACCUSATORY INSTRUMENT OF THE EXISTENCE OF ALL SUCH KNOWN RECORDINGS. THE PROSECUTION SHALL EXPE- DITIOUSLY TAKE WHATEVER REASONABLE STEPS ARE NECESSARY TO ENSURE THAT ALL KNOWN ELECTRONIC RECORDINGS OF 911 TELEPHONE CALLS, POLICE RADIO TRANSMISSIONS AND VIDEO AND AUDIO FOOTAGE AND OTHER POLICE RECORDINGS MADE OR AVAILABLE IN CONNECTION WITH THE CASE ARE PRESERVED. UPON THE DEFENDANT'S TIMELY REQUEST AND DESIGNATION OF A SPECIFIC ELECTRONIC RECORDING OF A 911 TELEPHONE CALL, THE PROSECUTION SHALL ALSO EXPE- DITIOUSLY TAKE WHATEVER REASONABLE STEPS ARE NECESSARY TO ENSURE THAT IT IS PRESERVED. S. 1509--C 145 A. 2009--C (B) IF THE PROSECUTION FAILS TO DISCLOSE SUCH AN ELECTRONIC RECORDING TO THE DEFENDANT PURSUANT TO PARAGRAPH (E), (G) OR (K) OF SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE DUE TO A FAILURE TO COMPLY WITH THIS OBLIGATION BY POLICE OFFICERS OR OTHER LAW ENFORCEMENT OR PROSE- CUTION PERSONNEL, THE COURT UPON MOTION OF THE DEFENDANT SHALL IMPOSE AN APPROPRIATE REMEDY OR SANCTION PURSUANT TO SECTION 245.80 OF THIS ARTI- CLE. § 245.60 CONTINUING DUTY TO DISCLOSE. IF EITHER THE PROSECUTION OR THE DEFENDANT SUBSEQUENTLY LEARNS OF ADDITIONAL MATERIAL OR INFORMATION WHICH IT WOULD HAVE BEEN UNDER A DUTY TO DISCLOSE PURSUANT TO ANY PROVISIONS OF THIS ARTICLE HAD IT KNOWN OF IT AT THE TIME OF A PREVIOUS DISCOVERY OBLIGATION OR DISCOVERY ORDER, IT SHALL EXPEDITIOUSLY NOTIFY THE OTHER PARTY AND DISCLOSE THE ADDITIONAL MATERIAL AND INFORMATION AS REQUIRED FOR INITIAL DISCOVERY UNDER THIS ARTICLE. THIS SECTION ALSO REQUIRES EXPEDITIOUS DISCLOSURE BY THE PROSE- CUTION OF MATERIAL OR INFORMATION THAT BECAME RELEVANT TO THE CASE OR DISCOVERABLE BASED ON RECIPROCAL DISCOVERY RECEIVED FROM THE DEFENDANT PURSUANT TO SUBDIVISION FOUR OF SECTION 245.20 OF THIS ARTICLE. § 245.65 WORK PRODUCT. THIS ARTICLE DOES NOT AUTHORIZE DISCOVERY BY A PARTY OF THOSE PORTIONS OF RECORDS, REPORTS, CORRESPONDENCE, MEMORANDA, OR INTERNAL DOCUMENTS OF THE ADVERSE PARTY WHICH ARE ONLY THE LEGAL RESEARCH, OPINIONS, THEORIES OR CONCLUSIONS OF THE ADVERSE PARTY OR ITS ATTORNEY OR THE ATTORNEY'S AGENTS, OR OF STATEMENTS OF A DEFENDANT, WRITTEN OR RECORDED OR SUMMA- RIZED IN ANY WRITING OR RECORDING, MADE TO THE ATTORNEY FOR THE DEFEND- ANT OR THE ATTORNEY'S AGENTS. § 245.70 PROTECTIVE ORDERS. 1. ANY DISCOVERY SUBJECT TO PROTECTIVE ORDER. UPON A SHOWING OF GOOD CAUSE BY EITHER PARTY, THE COURT MAY AT ANY TIME ORDER THAT DISCOVERY OR INSPECTION OF ANY KIND OF MATERIAL OR INFORMATION UNDER THIS ARTICLE BE DENIED, RESTRICTED, CONDITIONED OR DEFERRED, OR MAKE SUCH OTHER ORDER AS IS APPROPRIATE. THE COURT MAY IMPOSE AS A CONDITION ON DISCOVERY TO A DEFENDANT THAT THE MATERIAL OR INFORMATION TO BE DISCOVERED BE AVAILABLE ONLY TO COUNSEL FOR THE DEFENDANT; OR, ALTERNATIVELY, THAT COUNSEL FOR THE DEFENDANT, AND PERSONS EMPLOYED BY THE ATTORNEY OR APPOINTED BY THE COURT TO ASSIST IN THE PREPARATION OF A DEFENDANT'S CASE, MAY NOT DISCLOSE PHYSICAL COPIES OF THE DISCOVERABLE DOCUMENTS TO A DEFENDANT OR TO ANYONE ELSE, PROVIDED THAT THE PROSECUTION AFFORDS THE DEFENDANT ACCESS TO INSPECT REDACTED COPIES OF THE DISCOVERABLE DOCUMENTS AT A SUPERVISED LOCATION THAT PROVIDES REGULAR AND REASONABLE HOURS FOR SUCH ACCESS, SUCH AS A PROSECUTOR'S OFFICE, POLICE STATION, FACILITY OF DETENTION, OR COURT. SHOULD THE COURT IMPOSE AS A CONDITION THAT SOME MATERIAL OR INFORMATION BE AVAILABLE ONLY TO COUNSEL FOR THE DEFENDANT, THE COURT SHALL INFORM THE DEFENDANT ON THE RECORD THAT HIS OR HER ATTORNEY IS NOT PERMITTED BY LAW TO DISCLOSE SUCH MATERIAL OR INFORMA- TION TO THE DEFENDANT. THE COURT MAY PERMIT A PARTY SEEKING OR OPPOS- ING A PROTECTIVE ORDER UNDER THIS SECTION, OR ANOTHER AFFECTED PERSON, TO SUBMIT PAPERS OR TESTIFY ON THE RECORD EX PARTE OR IN CAMERA. ANY SUCH PAPERS AND A TRANSCRIPT OF SUCH TESTIMONY MAY BE SEALED AND SHALL CONSTITUTE A PART OF THE RECORD ON APPEAL. THIS SECTION DOES NOT ALTER THE ALLOCATION OF THE BURDEN OF PROOF WITH REGARD TO MATTERS AT ISSUE, INCLUDING PRIVILEGE. 2. MODIFICATION OF TIME PERIODS FOR DISCOVERY. UPON MOTION OF A PARTY IN AN INDIVIDUAL CASE, THE COURT MAY ALTER THE TIME PERIODS FOR DISCOV- ERY IMPOSED BY THIS ARTICLE UPON A SHOWING OF GOOD CAUSE. S. 1509--C 146 A. 2009--C 3. PROMPT HEARING. UPON REQUEST FOR A PROTECTIVE ORDER, UNLESS THE DEFENDANT VOLUNTARILY CONSENTS TO THE PEOPLE'S REQUEST FOR A PROTECTIVE ORDER, THE COURT SHALL CONDUCT AN APPROPRIATE HEARING WITHIN THREE BUSI- NESS DAYS TO DETERMINE WHETHER GOOD CAUSE HAS BEEN SHOWN AND WHEN PRAC- TICABLE SHALL RENDER A DECISION EXPEDITIOUSLY. ANY MATERIALS SUBMITTED AND A TRANSCRIPT OF THE PROCEEDING MAY BE SEALED AND SHALL CONSTITUTE A PART OF THE RECORD ON APPEAL. 4. SHOWING OF GOOD CAUSE. IN DETERMINING GOOD CAUSE UNDER THIS SECTION THE COURT MAY CONSIDER: CONSTITUTIONAL RIGHTS OR LIMITATIONS; DANGER TO THE INTEGRITY OF PHYSICAL EVIDENCE OR THE SAFETY OF A WITNESS; RISK OF INTIMIDATION, ECONOMIC REPRISAL, BRIBERY, HARASSMENT OR UNJUSTI- FIED ANNOYANCE OR EMBARRASSMENT TO ANY PERSON, AND THE NATURE, SEVERITY AND LIKELIHOOD OF THAT RISK; A RISK OF AN ADVERSE EFFECT UPON THE LEGIT- IMATE NEEDS OF LAW ENFORCEMENT, INCLUDING THE PROTECTION OF THE CONFI- DENTIALITY OF INFORMANTS, AND THE NATURE, SEVERITY AND LIKELIHOOD OF THAT RISK; THE NATURE AND CIRCUMSTANCES OF THE FACTUAL ALLEGATIONS IN THE CASE; WHETHER THE DEFENDANT HAS A HISTORY OF WITNESS INTIMIDATION OR TAMPERING AND THE NATURE OF THAT HISTORY; THE NATURE OF THE STATED REASONS IN SUPPORT OF A PROTECTIVE ORDER; THE NATURE OF THE WITNESS IDENTIFYING INFORMATION THAT IS SOUGHT TO BE ADDRESSED BY A PROTECTIVE ORDER, INCLUDING THE OPTION OF EMPLOYING ADEQUATE ALTERNATIVE CONTACT INFORMATION; DANGER TO ANY PERSON STEMMING FROM FACTORS SUCH AS A DEFENDANT'S SUBSTANTIATED AFFILIATION WITH A CRIMINAL ENTERPRISE AS DEFINED IN SUBDIVISION THREE OF SECTION 460.10 OF THE PENAL LAW; AND OTHER SIMILAR FACTORS FOUND TO OUTWEIGH THE USEFULNESS OF THE DISCOVERY. 5. SUCCESSOR COUNSEL OR PRO SE DEFENDANT. IN CASES IN WHICH THE ATTOR- NEY-CLIENT RELATIONSHIP IS TERMINATED PRIOR TO TRIAL FOR ANY REASON, ANY MATERIAL OR INFORMATION DISCLOSED SUBJECT TO A CONDITION THAT IT BE AVAILABLE ONLY TO COUNSEL FOR THE DEFENDANT, OR LIMITED IN DISSEMINATION BY PROTECTIVE ORDER OR OTHERWISE, SHALL BE PROVIDED ONLY TO SUCCESSOR COUNSEL FOR THE DEFENDANT UNDER THE SAME CONDITION OR CONDITIONS OR BE RETURNED TO THE PROSECUTION, UNLESS THE COURT RULES OTHERWISE FOR GOOD CAUSE SHOWN OR THE PROSECUTOR GIVES WRITTEN CONSENT. ANY WORK PRODUCT DERIVED FROM SUCH MATERIAL OR INFORMATION SHALL NOT BE PROVIDED TO THE DEFENDANT, UNLESS THE COURT RULES OTHERWISE OR THE PROSECUTOR GIVES WRITTEN CONSENT. IF THE DEFENDANT IS ACTING AS HIS OR HER OWN ATTORNEY, THE COURT MAY REGULATE THE TIME, PLACE AND MANNER OF ACCESS TO ANY DISCOVERABLE MATERIAL OR INFORMATION; AND IT MAY AS APPROPRIATE APPOINT PERSONS TO ASSIST THE DEFENDANT IN THE INVESTIGATION OR PREPARATION OF THE CASE. UPON MOTION OR APPLICATION OF A DEFENDANT ACTING AS HIS OR HER OWN ATTORNEY, THE COURT MAY AT ANY TIME MODIFY OR VACATE ANY CONDITION OR RESTRICTION RELATING TO ACCESS TO DISCOVERABLE MATERIAL OR INFORMA- TION, FOR GOOD CAUSE SHOWN. 6. EXPEDITED REVIEW OF ADVERSE RULING. (A) A PARTY THAT HAS UNSUCCESS- FULLY SOUGHT, OR UNSUCCESSFULLY OPPOSED THE GRANTING OF, A PROTECTIVE ORDER UNDER THIS SECTION RELATING TO THE NAME, ADDRESS, CONTACT INFORMA- TION OR STATEMENTS OF A PERSON MAY OBTAIN EXPEDITED REVIEW OF THAT RULING BY AN INDIVIDUAL JUSTICE OF THE INTERMEDIATE APPELLATE COURT TO WHICH AN APPEAL FROM A JUDGMENT OF CONVICTION IN THE CASE WOULD BE TAKEN. (B) SUCH REVIEW SHALL BE SOUGHT WITHIN TWO BUSINESS DAYS OF THE ADVERSE OR PARTIALLY ADVERSE RULING, BY ORDER TO SHOW CAUSE FILED WITH THE INTERMEDIATE APPELLATE COURT. THE ORDER TO SHOW CAUSE SHALL IN ADDI- TION BE TIMELY SERVED ON THE LOWER COURT AND ON THE OPPOSING PARTY, AND SHALL BE ACCOMPANIED BY A SWORN AFFIRMATION STATING IN GOOD FAITH (I) THAT THE RULING AFFECTS SUBSTANTIAL INTERESTS, AND (II) THAT DILIGENT S. 1509--C 147 A. 2009--C EFFORTS TO REACH AN ACCOMMODATION OF THE UNDERLYING DISCOVERY DISPUTE WITH OPPOSING COUNSEL FAILED OR THAT NO ACCOMMODATION WAS FEASIBLE; EXCEPT THAT SERVICE ON THE OPPOSING PARTY, AND A STATEMENT REGARDING EFFORTS TO REACH AN ACCOMMODATION, ARE UNNECESSARY WHERE THE OPPOSING PARTY WAS NOT MADE AWARE OF THE APPLICATION FOR A PROTECTIVE ORDER AND GOOD CAUSE IS SHOWN FOR OMITTING SERVICE OF THE ORDER TO SHOW CAUSE ON THE OPPOSING PARTY. THE LOWER COURT'S ORDER SUBJECT TO REVIEW SHALL BE STAYED UNTIL THE APPELLATE JUSTICE RENDERS A DETERMINATION. (C) THE ASSIGNMENT OF THE INDIVIDUAL APPELLATE JUSTICE, AND THE MODE OF AND PROCEDURE FOR THE REVIEW, SHALL BE DETERMINED BY RULES OF THE INDIVIDUAL APPELLATE COURTS. THE APPELLATE JUSTICE MAY CONSIDER ANY RELEVANT AND RELIABLE INFORMATION BEARING ON THE ISSUE, AND MAY DISPENSE WITH WRITTEN BRIEFS OTHER THAN SUPPORTING AND OPPOSING MATERIALS PREVI- OUSLY SUBMITTED TO THE LOWER COURT. THE APPELLATE JUSTICE MAY DISPENSE WITH THE ISSUANCE OF A WRITTEN OPINION IN RENDERING HIS OR HER DECISION, AND WHEN PRACTICABLE SHALL RENDER DECISION AND ORDER EXPEDITIOUSLY. SUCH REVIEW, DECISION AND ORDER SHALL NOT AFFECT THE RIGHT OF A DEFENDANT, IN A SUBSEQUENT APPEAL FROM A JUDGMENT OF CONVICTION, TO CLAIM AS ERROR THE RULING REVIEWED. 7. COMPLIANCE WITH PROTECTIVE ORDER. ANY PROTECTIVE ORDER ISSUED UNDER THIS ARTICLE IS A MANDATE OF THE COURT FOR PURPOSES OF THE OFFENSE OF CRIMINAL CONTEMPT IN SUBDIVISION THREE OF SECTION 215.50 OF THE PENAL LAW. § 245.75 WAIVER OF DISCOVERY BY DEFENDANT. A DEFENDANT WHO DOES NOT SEEK DISCOVERY FROM THE PROSECUTION UNDER THIS ARTICLE SHALL SO NOTIFY THE PROSECUTION AND THE COURT AT THE DEFENDANT'S ARRAIGNMENT ON AN INDICTMENT, SUPERIOR COURT INFORMATION, PROSECUTOR'S INFORMATION, INFORMATION, OR SIMPLIFIED INFORMATION, OR EXPEDITIOUSLY THEREAFTER BUT BEFORE RECEIVING DISCOVERY FROM THE PROSE- CUTION PURSUANT TO SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE, AND THE DEFENDANT NEED NOT PROVIDE DISCOVERY TO THE PROSECUTION PURSUANT TO SUBDIVISION FOUR OF SECTION 245.20 AND SECTION 245.60 OF THIS ARTI- CLE. A WAIVER SHALL BE IN WRITING, SIGNED FOR THE INDIVIDUAL CASE BY COUNSEL FOR THE DEFENDANT AND FILED WITH THE COURT. SUCH A WAIVER DOES NOT ALTER OR IN ANY WAY AFFECT THE PROCEDURES, OBLIGATIONS OR RIGHTS SET FORTH IN SECTIONS 250.10, 250.20 AND 250.30 OF THIS TITLE, OR OTHERWISE ESTABLISHED OR REQUIRED BY LAW. THE PROSECUTION MAY NOT CONDITION A GUILTY PLEA OFFER ON THE DEFENSE'S EXECUTION OF A WAIVER UNDER THIS SECTION. § 245.80 REMEDIES OR SANCTIONS FOR NON-COMPLIANCE. 1. NEED FOR REMEDY OR SANCTION. (A) WHEN MATERIAL OR INFORMATION IS DISCOVERABLE UNDER THIS ARTICLE BUT IS DISCLOSED BELATEDLY, THE COURT SHALL IMPOSE AN APPROPRIATE REMEDY OR SANCTION IF THE PARTY ENTITLED TO DISCLOSURE SHOWS THAT IT WAS PREJUDICED. REGARDLESS OF A SHOWING OF PREJUDICE THE PARTY ENTITLED TO DISCLOSURE SHALL BE GIVEN REASONABLE TIME TO PREPARE AND RESPOND TO THE NEW MATERIAL. (B) WHEN MATERIAL OR INFORMATION IS DISCOVERABLE UNDER THIS ARTICLE BUT CANNOT BE DISCLOSED BECAUSE IT HAS BEEN LOST OR DESTROYED, THE COURT SHALL IMPOSE AN APPROPRIATE REMEDY OR SANCTION IF THE PARTY ENTITLED TO DISCLOSURE SHOWS THAT THE LOST OR DESTROYED MATERIAL MAY HAVE CONTAINED SOME INFORMATION RELEVANT TO A CONTESTED ISSUE. THE APPROPRIATE REMEDY OR SANCTION IS THAT WHICH IS PROPORTIONATE TO THE POTENTIAL WAYS IN WHICH THE LOST OR DESTROYED MATERIAL REASONABLY COULD HAVE BEEN HELPFUL TO THE PARTY ENTITLED TO DISCLOSURE. 2. AVAILABLE REMEDIES OR SANCTIONS. FOR FAILURE TO COMPLY WITH ANY DISCOVERY ORDER IMPOSED OR ISSUED PURSUANT TO THIS ARTICLE, THE COURT S. 1509--C 148 A. 2009--C MAY MAKE A FURTHER ORDER FOR DISCOVERY, GRANT A CONTINUANCE, ORDER THAT A HEARING BE REOPENED, ORDER THAT A WITNESS BE CALLED OR RECALLED, INSTRUCT THE JURY THAT IT MAY DRAW AN ADVERSE INFERENCE REGARDING THE NON-COMPLIANCE, PRECLUDE OR STRIKE A WITNESS'S TESTIMONY OR A PORTION OF A WITNESS'S TESTIMONY, ADMIT OR EXCLUDE EVIDENCE, ORDER A MISTRIAL, ORDER THE DISMISSAL OF ALL OR SOME OF THE CHARGES, OR MAKE SUCH OTHER ORDER AS IT DEEMS JUST UNDER THE CIRCUMSTANCES; EXCEPT THAT ANY SANCTION AGAINST THE DEFENDANT SHALL COMPORT WITH THE DEFENDANT'S CONSTITUTIONAL RIGHT TO PRESENT A DEFENSE, AND PRECLUDING A DEFENSE WITNESS FROM TESTIFYING SHALL BE PERMISSIBLE ONLY UPON A FINDING THAT THE DEFENDANT'S FAILURE TO COMPLY WITH THE DISCOVERY OBLIGATION OR ORDER WAS WILLFUL AND MOTIVATED BY A DESIRE TO OBTAIN A TACTICAL ADVANTAGE. 3. CONSEQUENCES OF NON-DISCLOSURE OF STATEMENT OF TESTIFYING PROSE- CUTION WITNESS. THE FAILURE OF THE PROSECUTOR OR ANY AGENT OF THE PROSE- CUTOR TO DISCLOSE ANY WRITTEN OR RECORDED STATEMENT MADE BY A PROSE- CUTION WITNESS WHICH RELATES TO THE SUBJECT MATTER OF THE WITNESS'S TESTIMONY SHALL NOT CONSTITUTE GROUNDS FOR ANY COURT TO ORDER A NEW PRE-TRIAL HEARING OR SET ASIDE A CONVICTION, OR REVERSE, MODIFY OR VACATE A JUDGMENT OF CONVICTION, IN THE ABSENCE OF A SHOWING BY THE DEFENDANT THAT THERE IS A REASONABLE POSSIBILITY THAT THE NON-DISCLOSURE MATERIALLY CONTRIBUTED TO THE RESULT OF THE TRIAL OR OTHER PROCEEDING; PROVIDED, HOWEVER, THAT NOTHING IN THIS SECTION SHALL AFFECT OR LIMIT ANY RIGHT THE DEFENDANT MAY HAVE TO A REOPENED PRE-TRIAL HEARING WHEN SUCH STATEMENTS WERE DISCLOSED BEFORE THE CLOSE OF EVIDENCE AT TRIAL. § 245.85 ADMISSIBILITY OF DISCOVERY. THE FACT THAT A PARTY HAS INDICATED DURING THE DISCOVERY PROCESS AN INTENTION TO OFFER SPECIFIED EVIDENCE OR TO CALL A SPECIFIED WITNESS IS NOT ADMISSIBLE IN EVIDENCE OR GROUNDS FOR ADVERSE COMMENT AT A HEARING OR A TRIAL. § 3. Subdivision 3 of section 610.20 of the criminal procedure law is amended and a new subdivision 4 is added to read as follows: 3. An attorney for a defendant in a criminal action or proceeding, as an officer of a criminal court, may issue a subpoena of such court, subscribed by himself, for the attendance in such court of any witness whom the defendant is entitled to call in such action or proceeding. An attorney for a defendant may not issue a subpoena duces tecum of the court directed to any department, bureau or agency of the state or of a political subdivision thereof, or to any officer or representative ther- eof, UNLESS THE SUBPOENA IS INDORSED BY THE COURT AND PROVIDES AT LEAST THREE DAYS FOR THE PRODUCTION OF THE REQUESTED MATERIALS. IN THE CASE OF AN EMERGENCY, THE COURT MAY BY ORDER DISPENSE WITH THE THREE-DAY PRODUCTION PERIOD. [Such a subpoena duces tecum may be issued in behalf of a defendant upon order of a court pursuant to the rules applicable to civil cases as provided in section twenty-three hundred seven of the civil practice law and rules.] 4. THE SHOWING REQUIRED TO SUSTAIN ANY SUBPOENA UNDER THIS SECTION IS THAT THE TESTIMONY OR EVIDENCE SOUGHT IS REASONABLY LIKELY TO BE RELE- VANT AND MATERIAL TO THE PROCEEDINGS, AND THE SUBPOENA IS NOT OVERBROAD OR UNREASONABLY BURDENSOME. § 4. Subdivision 9 of section 65.20 of the criminal procedure law, as added by chapter 505 of the laws of 1985 and as renumbered by chapter 548 of the laws of 2007, is amended to read as follows: 9. (a) Prior to the commencement of the hearing conducted pursuant to subdivision [five] SIX of this section, the district attorney shall, subject to a protective order, comply with the provisions of subdivision one of section [240.45] 245.20 of this chapter as they concern any S. 1509--C 149 A. 2009--C witness whom the district attorney intends to call at the hearing and the child witness. (b) Before a defendant calls a witness at such hearing, he or she must, subject to a protective order, comply with the provisions of subdivision [two] FOUR of section [240.45] 245.20 of this chapter as they concern all the witnesses the defendant intends to call at such hearing. § 5. Subdivision 5 of section 200.95 of the criminal procedure law, as added by chapter 558 of the laws of 1982, is amended to read as follows: 5. Court ordered bill of particulars. Where a prosecutor has timely served a written refusal pursuant to subdivision four of this section and upon motion, made in writing, of a defendant, who has made a request for a bill of particulars and whose request has not been complied with in whole or in part, the court must, to the extent a protective order is not warranted, order the prosecutor to comply with the request if it is satisfied that the items of factual information requested are authorized to be included in a bill of particulars, and that such information is necessary to enable the defendant adequately to prepare or conduct his defense and, if the request was untimely, a finding of good cause for the delay. Where a prosecutor has not timely served a written refusal pursuant to subdivision four of this section the court must, unless it is satisfied that the people have shown good cause why such an order should not be issued, issue an order requiring the prosecutor to comply or providing for any other order authorized by [subdivision one of section 240.70] SECTION 245.80 OF THIS PART. § 6. Paragraph (c) of subdivision 1 of section 255.10 of the criminal procedure law, as added by chapter 763 of the laws of 1974, is amended to read as follows: (c) granting discovery pursuant to article [240] 245; or § 7. Subdivision 1 of section 255.20 of the criminal procedure law, as amended by chapter 369 of the laws of 1982, is amended to read as follows: 1. Except as otherwise expressly provided by law, whether the defend- ant is represented by counsel or elects to proceed pro se, all pre-trial motions shall be served or filed within forty-five days after arraign- ment and before commencement of trial, or within such additional time as the court may fix upon application of the defendant made prior to entry of judgment. In an action in which EITHER (A) MATERIAL OR INFORMATION HAS BEEN DISCLOSED PURSUANT TO PARAGRAPH (M) OR (N) OF SUBDIVISION ONE OF SECTION 245.20 OF THIS TITLE, (B) an eavesdropping warrant and appli- cation have been furnished pursuant to section 700.70 OF THIS CHAPTER, or (C) a notice of intention to introduce evidence has been served pursuant to section 710.30 OF THIS CHAPTER, such period shall be extended until forty-five days after the last date of such service. If the defendant is not represented by counsel and has requested an adjournment to obtain counsel or to have counsel assigned, such forty- five day period shall commence on the date counsel initially appears on defendant's behalf. § 8. Section 340.30 of the criminal procedure law is amended to read as follows: § 340.30 Pre-trial discovery and notices of defenses. The provisions of article two hundred [forty] FORTY-FIVE OF THIS PART, concerning pre-trial discovery by a defendant under indictment in a superior court, and article two hundred fifty OF THIS PART, concerning pre-trial notice to the people by a defendant under indictment in a superior court who intends to advance a trial defense of mental disease S. 1509--C 150 A. 2009--C or defect or of alibi, apply to a prosecution of an information in a local criminal court. § 9. Subdivision 14 of section 400.27 of the criminal procedure law, as added by chapter 1 of the laws of 1995, is amended to read as follows: 14. (a) At a reasonable time prior to the sentencing proceeding or a mental retardation hearing: (i) the prosecutor shall, unless previously disclosed and subject to a protective order, make available to the defendant the statements and information specified in subdivision one of section [240.45] 245.20 OF THIS PART and make available for inspection, photographing, copying or testing the property specified in subdivision one of section [240.20] 245.20; and (ii) the defendant shall, unless previously disclosed and subject to a protective order, make available to the prosecution the statements and information specified in subdivision [two] FOUR of section [240.45] 245.20 and make available for inspection, photographing, copying or testing, subject to constitutional limitations, the reports, documents and other property specified [in subdivision one of section 240.30] IN SECTION 245.20 OF THIS PART. (b) Where a party refuses to make disclosure pursuant to this section, the provisions of section [240.35, subdivision one of section 240.40 and section 240.50] 245.70, 245.75 AND/OR 245.80 OF THIS PART shall apply. (c) If, after complying with the provisions of this section or an order pursuant thereto, a party finds either before or during a sentenc- ing proceeding or mental retardation hearing, additional material subject to discovery or covered by court order, the party shall promptly make disclosure or apply for a protective order. (d) If the court finds that a party has failed to comply with any of the provisions of this section, the court may [enter] EMPLOY any of the [orders] REMEDIES OR SANCTIONS specified in subdivision one of section [240.70] 245.80 OF THIS PART. § 10. The opening paragraph of paragraph (b) of subdivision 1 of section 440.30 of the criminal procedure law, as added by chapter 19 of the laws of 2012, is amended to read as follows: In conjunction with the filing or consideration of a motion to vacate a judgment pursuant to section 440.10 of this article by a defendant convicted after a trial, in cases where the court has ordered an eviden- tiary hearing upon such motion, the court may order that the people produce or make available for inspection property[, as defined in subdi- vision three of section 240.10 of this part,] in its possession, custo- dy, or control that was secured in connection with the investigation or prosecution of the defendant upon credible allegations by the defendant and a finding by the court that such property, if obtained, would be probative to the determination of defendant's actual innocence, and that the request is reasonable. The court shall deny or limit such a request upon a finding that such a request, if granted, would threaten the integrity or chain of custody of property or the integrity of the proc- esses or functions of a laboratory conducting DNA testing, pose a risk of harm, intimidation, embarrassment, reprisal, or other substantially negative consequences to any person, undermine the proper functions of law enforcement including the confidentiality of informants, or on the basis of any other factor identified by the court in the interests of justice or public safety. The court shall further ensure that any prop- erty produced pursuant to this paragraph is subject to a protective S. 1509--C 151 A. 2009--C order, where appropriate. The court shall deny any request made pursuant to this paragraph where: § 11. Subdivision 10 of section 450.10 of the penal law, as added by chapter 795 of the laws of 1984, is amended to read as follows: 10. Where there has been a failure to comply with the provisions of this section, and where the district attorney does not demonstrate to the satisfaction of the court that such failure has not caused the defendant prejudice, the court shall instruct the jury that it may consider such failure in determining the weight to be given such evidence and may also impose any other sanction set forth in subdivision one of section [240.70] 245.80 of the criminal procedure law; provided, however, that unless the defendant has convinced the court that such failure has caused him undue prejudice, the court shall not preclude the district attorney from introducing into evidence the property, photo- graphs, photocopies, or other reproductions of the property or, where appropriate, testimony concerning its value and condition, where such evidence is otherwise properly authenticated and admissible under the rules of evidence. Failure to comply with any one or more of the provisions of this section shall not for that reason alone be grounds for dismissal of the accusatory instrument. § 12. Section 460.80 of the penal law, as added by chapter 516 of the laws of 1986, is amended to read as follows: § 460.80 Court ordered disclosure. Notwithstanding the provisions of article two hundred [forty] FORTY- FIVE of the criminal procedure law, when forfeiture is sought pursuant to section 460.30 of this [chapter] ARTICLE, the court may order discov- ery of any property not otherwise disclosed which is material and reasonably necessary for preparation by the defendant with respect to the forfeiture proceeding pursuant to such section. The court may issue a protective order denying, limiting, conditioning, delaying or regulat- ing such discovery where a danger to the integrity of physical evidence or a substantial risk of physical harm, intimidation, economic reprisal, bribery or unjustified annoyance or embarrassment to any person or an adverse effect upon the legitimate needs of law enforcement, including the protection of the confidentiality of informants, or any other factor or set of factors outweighs the usefulness of the discovery. § 13. Subdivision 5 of section 480.10 of the penal law, as added by chapter 655 of the laws of 1990, is amended to read as follows: 5. In addition to information required to be disclosed pursuant to article two hundred [forty] FORTY-FIVE of the criminal procedure law, when forfeiture is sought pursuant to this article, and following the defendant's arraignment on the special forfeiture information, the court shall order discovery of any information not otherwise disclosed which is material and reasonably necessary for preparation by the defendant with respect to a forfeiture proceeding brought pursuant to this arti- cle. Such material shall include those portions of the grand jury minutes and such other information which pertain solely to the special forfeiture information and shall not include information which pertains to the criminal charges. Upon application of the prosecutor, the court may issue a protective order pursuant to section [240.40] 245.70 of the criminal procedure law with respect to any information required to be disclosed pursuant to this subdivision. § 14. This act shall take effect January 1, 2020; provided, however, the amendments to section 65.20 of the criminal procedure law made by section four of this act shall not affect the repeal of such section and shall be deemed repealed therewith. S. 1509--C 152 A. 2009--C PART MMM Section 1. Paragraphs (d) and (e) of subdivision 1-a of section 70.15 of the penal law, as added by section 2 of part OO of a chapter of the laws of 2019 amending the penal law and the criminal procedure law relating to reducing certain sentences of imprisonment for misdemeanors to three hundred sixty-four days, as proposed in legislative bill numbers S.1505-C and A.2005-C, are amended to read as follows: (d) Any sentence for a misdemeanor conviction imposed prior to the effective date of this subdivision that is other than a definite sentence of imprisonment of one year may be set aside, upon motion of the defendant under section 440.20 of the criminal procedure law based on a showing that the judgment and sentence under the law in effect at the time of conviction imposed prior to the effective date of this subdivision is likely to result in [severe] collateral consequences, in order to permit the court to resentence the defendant in accordance with the amendatory provisions of this subdivision. (e) Resentence by operation of law is without prejudice to an individ- ual seeking further relief pursuant to paragraph [(i)] (J) of subdivi- sion one of section 440.10 of the criminal procedure law. Nothing in this section is intended to diminish or abrogate any rights or remedies otherwise available to the individual. § 2. Paragraph (j) of subdivision 1 of section 440.10 of the criminal procedure law, as added by section 3 of part OO of a chapter of the laws of 2019 amending the penal law and the criminal procedure law relating to reducing certain sentences of imprisonment for misdemeanors to three hundred sixty-four days, as proposed in legislative bill numbers S.1505-C and A.2005-C, is amended to read as follows: (j) The judgment is a conviction for a class A or unclassified misde- meanor entered prior to the effective date of this paragraph and satis- fies the ground prescribed in paragraph (h) of this subdivision. There shall be a rebuttable presumption that a conviction by plea to such an offense was not knowing, voluntary and intelligent, based on [severe or] ongoing collateral consequences, including potential or actual immi- gration consequences, and there shall be a rebuttable presumption that a conviction by verdict constitutes cruel and unusual punishment under section five of article one of the state constitution based on such consequences. § 3. This act shall take effect on the same date and in the same manner as part OO of a chapter of the laws of 2019 amending the penal law and the criminal procedure law relating to reducing certain sentences of imprisonment for misdemeanors to three hundred sixty-four days, as proposed in legislative bill numbers S.1505-C and A.2005-C, takes effect. PART NNN 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 S. 1509--C 153 A. 2009--C 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 OOO Section 1. Subdivision (a) of section 1402 of the tax law, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) A tax is hereby imposed on each conveyance of real property or interest therein when the consideration exceeds five hundred dollars, at the rate of two dollars for each five hundred dollars or fractional part thereof; provided, however, that with respect to (A) a conveyance of a one, two or three-family house and an individual residential condominium unit, or interests therein; and (B) conveyances where the consideration is less than five hundred thousand dollars, the consideration for the interest conveyed shall exclude the value of any lien or encumbrance remaining thereon at the time of conveyance. THE RATE OF THIS TAX SHALL BE: (1) TWO DOLLARS FOR EACH FIVE HUNDRED DOLLARS OR FRACTIONAL PART THEREOF ON ALL CONVEYANCES OF REAL PROPERTY OR INTEREST THEREIN; PLUS (2) AN ADDITIONAL ONE DOLLAR AND TWENTY-FIVE CENTS FOR EACH FIVE HUNDRED DOLLARS OR FRACTIONAL PART THEREOF OF CONSIDERATION ON EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THEREIN WITHIN ANY CITY IN THIS STATE HAVING A POPULATION OF ONE MILLION OR MORE (I) WHEN THE CONSIDERATION FOR THE ENTIRE CONVEYANCE OF RESIDENTIAL REAL PROPERTY IS THREE MILLION DOLLARS OR MORE, AND (II) WHEN THE CONSIDERATION FOR THE ENTIRE CONVEY- ANCE OF ANY OTHER PROPERTY IS TWO MILLION DOLLARS OR MORE. FOR PURPOSES OF THIS SECTION, RESIDENTIAL REAL PROPERTY SHALL INCLUDE ANY PREMISES THAT IS OR MAY BE USED IN WHOLE OR IN PART AS A PERSONAL RESIDENCE, AND SHALL INCLUDE A ONE, TWO, OR THREE-FAMILY HOUSE, AN INDIVIDUAL CONDOMIN- IUM UNIT, OR A COOPERATIVE APARTMENT UNIT. § 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: S. 1509--C 154 A. 2009--C (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 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. The tax law is amended by adding a new section 1402-b to read as follows: § 1402-B. SUPPLEMENTAL TAX IN CITIES HAVING A POPULATION OF ONE MILLION OR MORE. (A) IN ADDITION TO THE TAXES IMPOSED BY SECTIONS FOUR- TEEN HUNDRED TWO AND FOURTEEN HUNDRED TWO-A OF THIS ARTICLE, A TAX IS HEREBY IMPOSED ON EACH CONVEYANCE OF RESIDENTIAL REAL PROPERTY OR INTER- EST THEREIN WITHIN ANY CITY IN THIS STATE HAVING A POPULATION OF ONE MILLION OR MORE WHEN THE CONSIDERATION FOR THE CONVEYANCE IS TWO MILLION DOLLARS OR MORE. FOR PURPOSES OF THIS SECTION, RESIDENTIAL REAL PROPERTY SHALL INCLUDE ANY PREMISES THAT IS OR MAY BE USED IN WHOLE OR IN PART AS A PERSONAL RESIDENCE, AND SHALL INCLUDE A ONE, TWO, OR THREE-FAMILY HOUSE, AN INDIVIDUAL CONDOMINIUM UNIT, OR A COOPERATIVE APARTMENT UNIT. SUCH TAX SHALL BE PAID AT THE SAME TIME AND IN THE SAME MANNER AS THE TAXES IMPOSED BY SECTIONS FOURTEEN HUNDRED TWO AND FOURTEEN HUNDRED TWO-A OF THIS ARTICLE. THE RATE OF SUCH TAX SHALL BE: (1) ONE-QUARTER OF ONE PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS AT LEAST TWO MILLION DOLLARS BUT LESS THAN THREE MILLION DOLLARS; (2) ONE-HALF OF ONE PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS AT LEAST THREE MILLION DOLLARS BUT LESS THAN FIVE MILLION DOLLARS; (3) ONE AND ONE-QUARTER PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS AT LEAST FIVE MILLION DOLLARS BUT LESS THAN TEN MILLION DOLLARS; (4) TWO AND ONE-QUARTER PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS AT LEAST TEN MILLION DOLLARS BUT LESS THAN FIFTEEN MILLION DOLLARS; (5) TWO AND ONE-HALF PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS AT LEAST FIFTEEN MILLION DOLLARS BUT LESS THAN TWENTY MILLION DOLLARS; (6) TWO AND THREE-QUARTERS PERCENT OF THE CONSIDERATION OR PART THERE- OF ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS AT LEAST TWENTY MILLION DOLLARS BUT LESS THAN TWENTY-FIVE MILLION DOLLARS; AND (7) TWO AND NINE-TENTHS PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS AT LEAST TWENTY-FIVE MILLION DOLLARS. (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF SECTION FOUR- TEEN HUNDRED FOUR OF THIS ARTICLE, THE TAX IMPOSED BY THIS SECTION SHALL BE PAID BY THE GRANTEE. IF THE GRANTEE 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 S. 1509--C 155 A. 2009--C 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. (C) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL THE PROVISIONS OF THIS ARTICLE RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION, DETERMINATION AND DISTRIBUTION OF THE TAX IMPOSED BY SECTION FOURTEEN HUNDRED TWO OF THIS ARTICLE SHALL APPLY TO THE TAX IMPOSED UNDER THE AUTHORITY OF THIS SECTION WITH SUCH MODIFICATIONS AS MAY BE NECESSARY TO ADAPT SUCH LANGUAGE TO THE TAX SO AUTHORIZED. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THOSE PROVISIONS HAD BEEN SET FORTH IN THIS SECTION EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR NOT RELEVANT TO THE TAX AUTHORIZED BY THIS SECTION. § 4. Section 1421 of the tax law, as amended by chapter 99 of the laws of 2010, is amended to read as follows: § 1421. Deposit and dispositions of revenues. (A) From the taxes, interest and penalties attributable to the tax imposed pursuant to section fourteen hundred two of this article, the amount of one hundred ninety-nine million three hundred thousand dollars shall be deposited by the comptroller in the environmental protection fund established pursu- ant to section ninety-two-s of the state finance law for the fiscal year beginning April first, two thousand nine; the amount of one hundred nineteen million one hundred thousand dollars shall be deposited in such fund for the fiscal year beginning April first, two thousand ten; and for each fiscal year thereafter. On or before June twelfth, nineteen hundred ninety-five and on or before the twelfth day of each month ther- eafter (excepting the first and second months of each fiscal year), the comptroller shall deposit into such fund from the taxes, interest and penalties collected pursuant to such section fourteen hundred two of this article which have been deposited and remain to the comptroller's credit in the banks, banking houses or trust companies referred to in section one hundred seventy-one-a of this chapter at the close of busi- ness on the last day of the preceding month, an amount equal to one- tenth of the annual amount required to be deposited in such fund pursu- ant to this section for the fiscal year in which such deposit is required to be made. In the event such amount of taxes, interest and penalties so remaining to the comptroller's credit is less than the amount required to be deposited in such fund by the comptroller, an amount equal to the shortfall shall be deposited in such fund by the comptroller with subsequent deposits, as soon as the revenue is avail- able. Beginning April first, nineteen hundred ninety-seven, the comp- troller shall transfer monthly to the clean water/clean air fund estab- lished pursuant to section ninety-seven-bbb of the state finance law, all moneys remaining from such taxes, interest and penalties collected that are not required for deposit in the environmental protection fund. (B) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, THE TAXES, INTER- EST AND PENALTIES ATTRIBUTABLE TO (I) THE TAX IMPOSED UNDER SECTION FOURTEEN HUNDRED TWO OF THIS ARTICLE AT THE RATE SPECIFIED IN PARAGRAPH TWO OF SUBDIVISION (A) OF SUCH SECTION, AND (II) THE TAX IMPOSED UNDER SECTION FOURTEEN HUNDRED TWO-B OF THIS ARTICLE, AND COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPON- SIBLE 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 S. 1509--C 156 A. 2009--C COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMP- TROLLER SHALL RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS ARTICLE. ON OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF EACH SUCCEEDING MONTH, AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS, 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 CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCKBOX FUND ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED FIFTY-THREE-J OF THE PUBLIC AUTHORITIES LAW, PROVIDED, HOWEVER, THAT THE COMPTROLLER SHALL ENSURE THAT ANY PAYMENTS TO THE CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCKBOX FUND ESTABLISHED THAT ARE DUE TO BE PAID BY THE FINAL BUSINESS DAY IN THE MONTH OF DECEMBER PURSUANT TO THIS SUBDIVISION SHALL BE RECEIVED BY THE CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCKBOX FUND ON THE SAME BUSI- NESS DAY IN WHICH IT IS PAID. § 5. This act shall take effect July 1, 2019, and shall apply to conveyances occurring on or after such date other than conveyances which are made pursuant to binding written contracts entered into on or before April 1, 2019, provided that the date of execution of such contract is confirmed by independent evidence, such as the recording of the contract, payment of a deposit or other facts and circumstances as determined by the commissioner of taxation and finance. PART PPP Section 1. Subparagraph (viii) of paragraph a of subdivision 10 of section 54 of the state finance law, as amended by section 1 of part O of chapter 56 of the laws of 2008, clause 2 as amended by section 1 of part I of chapter 57 of the laws of 2011, is amended and a new subpara- graph (v) is added to paragraph b to read as follows: (viii) "Prior year aid" means[: (1) for the state fiscal year commencing April first, two thousand seven, the total amount of state aid a municipality or county having a population of less than one million but more than nine hundred twenty- five thousand according to the federal decennial census of two thousand received in the state fiscal year commencing April first, two thousand six. (2) for the state fiscal year commencing April first, two thousand eight and in each state fiscal year thereafter, the base level grant received in the immediately preceding state fiscal year pursuant to paragraph b of this subdivision and chapter three hundred thirteen of the laws of two thousand ten, excluding any deficit reduction adjustment pursuant to paragraph e-1 of this subdivision, plus any additional apportionments received in such year pursuant to paragraph d of this subdivision and any per capita adjustments received in such year pursu- ant to paragraph e of this subdivision] FOR THE STATE FISCAL YEAR COMMENCING APRIL FIRST, TWO THOUSAND NINETEEN AND IN EACH STATE FISCAL YEAR THEREAFTER, THE BASE LEVEL GRANT RECEIVED IN THE IMMEDIATELY PRECEDING STATE FISCAL YEAR PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION. (V) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, WITHIN AMOUNTS APPROPRIATED IN THE STATE FISCAL YEAR COMMENCING APRIL FIRST, TWO THOU- SAND NINETEEN, AND ANNUALLY THEREAFTER, THERE SHALL BE APPORTIONED AND PAID TO EACH MUNICIPALITY WHICH IS A CITY A BASE LEVEL GRANT IN AN S. 1509--C 157 A. 2009--C AMOUNT EQUAL TO THE PRIOR YEAR AID RECEIVED BY SUCH CITY, AND THERE SHALL BE APPORTIONED AND PAID TO EACH MUNICIPALITY WHICH IS A TOWN OR VILLAGE A BASE LEVEL GRANT IN ACCORDANCE WITH CLAUSE TWO OF THIS SUBPAR- AGRAPH. (1) WHEN USED IN THIS SUBPARAGRAPH, UNLESS OTHERWISE EXPRESSLY STATED: (A) "TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN AIM FUNDING" SHALL MEAN THE SUM OF THE BASE LEVEL GRANT PAID IN THE STATE FISCAL YEAR THAT BEGAN APRIL FIRST, TWO THOUSAND EIGHTEEN PURSUANT TO THIS PARAGRAPH. (B) "TWO THOUSAND SEVENTEEN TOTAL EXPENDITURES" SHALL MEAN ALL FUNDS AND TOTAL EXPENDITURES FOR A TOWN OR A VILLAGE AS REPORTED TO THE STATE COMPTROLLER FOR LOCAL FISCAL YEARS ENDED IN TWO THOUSAND SEVENTEEN. (C) "AIM RELIANCE" SHALL MEAN TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN AIM FUNDING CALCULATED AS A PERCENTAGE OF TWO THOUSAND SEVEN- TEEN TOTAL EXPENDITURES, PROVIDED THAT, FOR A VILLAGE WHICH DISSOLVED DURING THE STATE FISCAL YEAR THAT BEGAN APRIL FIRST, TWO THOUSAND EIGH- TEEN, THE VILLAGE'S TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN AIM FUNDING SHALL BE ADDED TO THE EXISTING TWO THOUSAND EIGHTEEN--TWO THOU- SAND NINETEEN AIM FUNDING OF THE TOWN INTO WHICH THE VILLAGE DISSOLVED FOR PURPOSES OF THIS CALCULATION. (2) A BASE LEVEL GRANT EQUAL TO A TOWN OR VILLAGE'S PRIOR YEAR AID ONLY IF SUCH TOWN OR VILLAGE'S AIM RELIANCE EQUALS TWO PERCENT OR GREAT- ER AS REPORTED TO AND PUBLISHED BY THE STATE COMPTROLLER AS OF JANUARY TENTH, TWO THOUSAND NINETEEN. § 2. Paragraph i of subdivision 10 of section 54 of the state finance law is amended by adding a new subparagraph (ix) to read as follows: (IX) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE STATE FISCAL YEAR COMMENCING APRIL FIRST, TWO THOUSAND NINETEEN, THE BASE LEVEL GRANT ADJUSTMENT PURSUANT TO SUBPARAGRAPH (V) OF PARAGRAPH B OF THIS SUBDIVISION SHALL BE MADE ON OR BEFORE SEPTEMBER TWENTY-FIFTH FOR A TOWN OR VILLAGE. § 3. Subdivision (c) of section 1261 of the tax law is amended by adding a new paragraph 5-a to read as follows: (5-A) HOWEVER, AFTER THE COMPTROLLER HAS MADE THE PAYMENTS REQUIRED BY PARAGRAPHS TWO, THREE AND FIVE OF THIS SUBDIVISION, FOR EACH MUNICI- PALITY THAT RECEIVED A BASE LEVEL GRANT IN STATE FISCAL YEAR TWO THOU- SAND EIGHTEEN-TWO THOUSAND NINETEEN BUT NOT IN STATE FISCAL YEAR TWO THOUSAND NINETEEN-TWO THOUSAND TWENTY UNDER THE AID AND INCENTIVES FOR MUNICIPALITIES PROGRAM PURSUANT TO SUBDIVISION TEN OF SECTION FIFTY-FOUR OF THE STATE FINANCE LAW, THE COMPTROLLER SHALL ANNUALLY WITHHOLD FROM THE REMAINING TAXES, PENALTIES AND INTEREST IMPOSED BY THE COUNTY IN WHICH A MAJORITY OF THE POPULATION OF SUCH MUNICIPALITY RESIDES AN AMOUNT EQUAL TO THE BASE LEVEL GRANT RECEIVED BY SUCH MUNICIPALITY IN STATE FISCAL YEAR TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN AND SHALL ANNUALLY DISTRIBUTE, BY DECEMBER FIFTEENTH, TWO THOUSAND NINETEEN AND BY SUCH DATE ANNUALLY THEREAFTER, SUCH AMOUNT DIRECTLY TO SUCH MUNICI- PALITY, UNLESS SUCH MUNICIPALITY HAS A FISCAL YEAR ENDING MAY THIRTY- FIRST, THEN SUCH ANNUAL DISTRIBUTION SHALL BE MADE BY MAY FIFTEENTH, TWO THOUSAND TWENTY AND BY SUCH DATE ANNUALLY THEREAFTER. NO COUNTY SHALL HAVE ANY RIGHT, TITLE OR INTEREST IN OR TO THE TAXES, PENALTIES AND INTEREST REQUIRED TO BE WITHHELD AND DISTRIBUTED PURSUANT TO THIS PARA- GRAPH. § 4. This act shall take effect immediately; provided, however, section three of this act shall take effect June 1, 2019. PART QQQ S. 1509--C 158 A. 2009--C Section 1. Section 1 of part KK of a chapter of the laws of 2019 directing the department of health to conduct a study relating to staff- ing enhancement and patient safety, as proposed in legislative bill numbers S.1507-C and A.2007-C, is amended to read as follows: Section 1. The Department of Health shall conduct a study to examine how staffing enhancements and other initiatives could be used to improve patient safety and the quality of healthcare service delivery in hospi- tals and nursing homes subject to article 28 of the public health law. The Department study shall consider minimum staffing levels, other staffing enhancement strategies, and other patient quality improvement initiatives for registered nurses, licensed practical nurses, and certi- fied nurse aides to improve the quality of care and patient safety. The study will analyze the range of potential fiscal impacts of staff- ing levels, other staffing enhancement strategies, and other patient quality improvement initiatives. The Department study will commence no later than May 1, 2019, and shall engage stakeholders, including the statewide hospital and nursing home associations, direct care health workers, LABOR REPRESENTATIVES, and patient and community health advocates, and shall report its find- ings and recommendations to the Commissioner of the Department of Health and to the Temporary President of the Senate and Speaker of the Assembly no later than December 31, 2019. § 2. This act shall take effect on the same date and in the same manner as part KK of a chapter of the laws of 2019 directing the depart- ment of health to conduct a study relating to staffing enhancement and patient safety, as proposed in legislative bill numbers S.1507-C and A.2007-C, takes effect. PART RRR Section 1. Section 10 of the highway law is amended by adding a new subdivision 24-e to read as follows: 24-E. THE COMMISSIONER OF TRANSPORTATION IS HEREBY AUTHORIZED TO ENTER INTO AN AGREEMENT WITH ANY FIBER OPTIC UTILITY FOR USE AND OCCUPANCY OF THE STATE RIGHT OF WAY FOR THE PURPOSES OF INSTALLING, MODIFYING, RELO- CATING, REPAIRING, OPERATING, OR MAINTAINING FIBER OPTIC FACILITIES. SUCH AGREEMENT MAY INCLUDE A FEE FOR USE AND OCCUPANCY OF THE RIGHT OF WAY, PROVIDED, HOWEVER, SUCH FEE SHALL NOT BE GREATER THAN FAIR MARKET VALUE. ANY PROVIDER USING OR OCCUPYING A RIGHT OF WAY IN FULFILLMENT OF A STATE GRANT AWARD THROUGH THE NEW NY BROADBAND PROGRAM SHALL NOT BE SUBJECT TO A FEE FOR SUCH USE OR OCCUPANCY. ANY FEE FOR USE OR OCCUPANCY CHARGED TO A FIBER OPTIC UTILITY SHALL NOT BE PASSED THROUGH IN WHOLE OR IN PART AS A FEE, CHARGE, INCREASED SERVICE COST, OR BY ANY OTHER MEANS BY A FIBER OPTIC UTILITY TO ANY PERSON OR ENTITY THAT CONTRACTS WITH SUCH FIBER OPTIC UTILITY FOR SERVICE. ANY COMPENSATION RECEIVED BY THE STATE PURSUANT TO SUCH AGREEMENT 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. NOTHING HEREIN SHALL IMPAIR, INHIBIT, OR OTHERWISE AFFECT THE ABILITY OF ANY MUNICIPALITY TO REGULATE ZONING, LAND USE, OR ANY OTHER POWER OR AUTHORITY GRANTED UNDER THE LAW. FOR PURPOSES OF THIS SUBDIVISION, "MUNICIPALITY" SHALL INCLUDE A COUNTY, CITY, VILLAGE, OR TOWN. § 2. The transportation corporations law is amended by adding a new section 7 to read as follows: S. 1509--C 159 A. 2009--C § 7. AGREEMENT FOR FIBER OPTIC UTILITY USE AND OCCUPANCY OF STATE RIGHT OF WAY. THE COMMISSIONER OF TRANSPORTATION IS HEREBY AUTHORIZED TO ENTER INTO AN AGREEMENT WITH ANY FIBER OPTIC UTILITY FOR USE AND OCCU- PANCY OF THE STATE RIGHT OF WAY FOR THE PURPOSES OF INSTALLING, MODIFY- ING, RELOCATING, REPAIRING, OPERATING, OR MAINTAINING FIBER OPTIC FACIL- ITIES. SUCH AGREEMENT MAY INCLUDE A FEE FOR USE AND OCCUPANCY OF THE RIGHT OF WAY, PROVIDED, HOWEVER, SUCH FEE SHALL NOT BE GREATER THAN FAIR MARKET VALUE. ANY PROVIDER USING OR OCCUPYING A RIGHT OF WAY IN FULFILL- MENT OF A STATE GRANT AWARD THROUGH THE NEW NY BROADBAND PROGRAM SHALL NOT BE SUBJECT TO A FEE FOR SUCH USE OR OCCUPANCY. ANY FEE FOR USE OR OCCUPANCY CHARGED TO A FIBER OPTIC UTILITY SHALL NOT BE PASSED THROUGH IN WHOLE OR IN PART AS A FEE, CHARGE, INCREASED SERVICE COST, OR BY ANY OTHER MEANS BY A FIBER OPTIC UTILITY TO ANY PERSON OR ENTITY THAT CONTRACTS WITH SUCH FIBER OPTIC UTILITY FOR SERVICE. ANY COMPENSATION RECEIVED BY THE STATE PURSUANT TO SUCH AGREEMENT 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. NOTHING HEREIN SHALL IMPAIR, INHIBIT, OR OTHERWISE AFFECT THE ABILITY OF ANY MUNICIPALITY TO REGULATE ZONING, LAND USE, OR ANY OTHER POWER OR AUTHORITY GRANTED UNDER THE LAW. FOR PURPOSES OF THIS SECTION, "MUNICIPALITY" SHALL INCLUDE A COUNTY, CITY, VILLAGE, OR TOWN. § 3. This act shall take effect immediately and shall expire and be deemed repealed five years after such date, provided that agreements executed prior to such repeal shall be permitted to continue for the term of the agreement executed under this act notwithstanding such repeal. PART SSS Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax law, as amended by section 1 of part M of chapter 59 of the laws of 2017, is amended to read as follows: (5) For the period two thousand fifteen through two thousand [twenty- two] TWENTY-FOUR, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or sala- ries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) by a qualified film production company or a qualified independent film production company for services performed by those individuals in one of the counties specified in this paragraph in connection with a qualified film with a minimum budget of five hundred thousand dollars. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-two] S. 1509--C 160 A. 2009--C TWENTY-FOUR of the annual allocation made available to the program pursuant to paragraph four of subdivision (e) of this section. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and television development among taxpayers in order of priority based upon the date of filing an application for allocation of film production credit with such office. If the total amount of allo- cated credits applied for under this paragraph in any year exceeds the aggregate amount of tax credits allowed for such year under this para- graph, such excess shall be treated as having been applied for on the first day of the next year. If the total amount of allocated tax credits applied for under this paragraph at the conclusion of any year is less than five million dollars, the remainder shall be treated as part of the annual allocation made available to the program pursuant to paragraph four of subdivision (e) of this section. However, in no event may the total of the credits allocated under this paragraph and the credits allocated under paragraph five of subdivision (a) of section thirty-one of this article exceed five million dollars in any year during the peri- od two thousand fifteen through two thousand [twenty-two] TWENTY-FOUR. § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 2 of part M of chapter 59 of the laws of 2017, is amended to read as follows: (4) Additional pool 2 - The aggregate amount of tax credits allowed in subdivision (a) of this section shall be increased by an additional four hundred twenty million dollars in each year starting in two thousand ten through two thousand [twenty-two] TWENTY-FOUR provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen and twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-two] TWENTY-FOUR. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this S. 1509--C 161 A. 2009--C chapter. The governor's office for motion picture and television devel- opment must notify taxpayers of their allocation year and include the allocation year on the certificate of tax credit. Taxpayers eligible to claim a credit must report the allocation year directly on their empire state film production credit tax form for each year a credit is claimed and include a copy of the certificate with their tax return. In the case of a qualified film that receives funds from additional pool 2, no empire state film production credit shall be claimed before the later of the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 3. Paragraph 6 of subdivision (a) of section 31 of the tax law, as amended by section 3 of part M of chapter 59 of the laws of 2017, is amended to read as follows: (6) For the period two thousand fifteen through two thousand [twenty- two] TWENTY-FOUR, in addition to the amount of credit established in paragraph two of THIS subdivision [(a) of this section], a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or salaries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) for services performed by those individuals in one of the coun- ties specified in this paragraph in connection with the post production work on a qualified film with a minimum budget of five hundred thousand dollars at a qualified post production facility in one of the counties listed in this paragraph. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-two] TWENTY-FOUR of the annual allocation made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this article. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and television development among taxpayers in order of priority based upon the date of filing an applica- tion for allocation of post production credit with such office. If the total amount of allocated credits applied for under this paragraph in any year exceeds the aggregate amount of tax credits allowed for such year under this paragraph, such excess shall be treated as having been applied for on the first day of the next year. If the total amount of allocated tax credits applied for under this paragraph at the conclusion of any year is less than five million dollars, the remainder shall be treated as part of the annual allocation for two thousand seventeen made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this arti- cle. However, in no event may the total of the credits allocated under this paragraph and the credits allocated under paragraph five of subdi- vision (a) of section twenty-four of this article exceed five million S. 1509--C 162 A. 2009--C dollars in any year during the period two thousand fifteen through two thousand [twenty-two] TWENTY-FOUR. § 4. This act shall take effect immediately. PART TTT 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. DOL-Child performer protection account (20401). 2. Proprietary vocational school supervision account (20452). 3. Local government records management account (20501). 4. Child health plus program account (20810). 5. EPIC premium account (20818). 6. Education - New (20901). 7. VLT - Sound basic education fund (20904). 8. Sewage treatment program management and administration fund (21000). 9. Hazardous bulk storage account (21061). 10. Federal grants indirect cost recovery account (21065). 11. Low level radioactive waste account (21066). 12. Recreation account (21067). 13. Public safety recovery account (21077). 14. Environmental regulatory account (21081). 15. Natural resource account (21082). 16. Mined land reclamation program account (21084). 17. Great lakes restoration initiative account (21087). 18. Environmental protection and oil spill compensation fund (21200). 19. Public transportation systems account (21401). 20. Metropolitan mass transportation (21402). 21. Operating permit program account (21451). 22. Mobile source account (21452). 23. Statewide planning and research cooperative system account (21902). 24. New York state thruway authority account (21905). 25. Mental hygiene program fund account (21907). 26. Mental hygiene patient income account (21909). 27. Financial control board account (21911). 28. Regulation of racing account (21912). 29. New York Metropolitan Transportation Council account (21913). 30. State university dormitory income reimbursable account (21937). 31. Criminal justice improvement account (21945). 32. Environmental laboratory reference fee account (21959). 33. Training, management and evaluation account (21961). 34. Clinical laboratory reference system assessment account (21962). 35. Indirect cost recovery account (21978). 36. High school equivalency program account (21979). 37. Multi-agency training account (21989). 38. Interstate reciprocity for post-secondary distance education account (23800). 39. Bell jar collection account (22003). 40. Industry and utility service account (22004). 41. Real property disposition account (22006). 42. Parking account (22007). 43. Courts special grants (22008). S. 1509--C 163 A. 2009--C 44. Asbestos safety training program account (22009). 45. Camp Smith billeting account (22017). 46. Batavia school for the blind account (22032). 47. Investment services account (22034). 48. Surplus property account (22036). 49. Financial oversight account (22039). 50. Regulation of Indian gaming account (22046). 51. Rome school for the deaf account (22053). 52. Seized assets account (22054). 53. Administrative adjudication account (22055). 54. Federal salary sharing account (22056). 55. New York City assessment account (22062). 56. Cultural education account (22063). 57. Local services account (22078). 58. DHCR mortgage servicing account (22085). 59. Housing indirect cost recovery account (22090). 60. DHCR-HCA application fee account (22100). 61. Low income housing monitoring account (22130). 62. Corporation administration account (22135). 63. Montrose veteran's home account (22144). 64. Deferred compensation administration account (22151). 65. Rent revenue other New York City account (22156). 66. Rent revenue account (22158). 67. Tax revenue arrearage account (22168). 68. State university general income offset account (22654). 69. Lake George park trust fund account (22751). 70. State police motor vehicle law enforcement account (22802). 71. Highway safety program account (23001). 72. DOH drinking water program account (23102). 73. NYCCC operating offset account (23151). 74. Commercial gaming revenue account (23701). 75. Commercial gaming regulation account (23702). 76. Highway use tax administration account (23801). 77. Fantasy sports administration account (24951). 78. Highway and bridge capital account (30051). 79. Aviation purpose account (30053). 80. State university residence hall rehabilitation fund (30100). 81. State parks infrastructure account (30351). 82. Clean water/clean air implementation fund (30500). 83. Hazardous waste remedial cleanup account (31506). 84. Youth facilities improvement account (31701). 85. Housing assistance fund (31800). 86. Housing program fund (31850). 87. Highway facility purpose account (31951). 88. Information technology capital financing account (32215). 89. New York racing account (32213). 90. Capital miscellaneous gifts account (32214). 91. New York environmental protection and spill remediation account (32219). 92. Mental hygiene facilities capital improvement fund (32300). 93. Correctional facilities capital improvement fund (32350). 94. New York State Storm Recovery Capital Fund (33000). 95. OGS convention center account (50318). 96. Empire Plaza Gift Shop (50327). 97. Centralized services fund (55000). 98. Archives records management account (55052). S. 1509--C 164 A. 2009--C 99. Federal single audit account (55053). 100. Civil service EHS occupational health program account (55056). 101. Banking services account (55057). 102. Cultural resources survey account (55058). 103. Neighborhood work project account (55059). 104. Automation & printing chargeback account (55060). 105. OFT NYT account (55061). 106. Data center account (55062). 107. Intrusion detection account (55066). 108. Domestic violence grant account (55067). 109. Centralized technology services account (55069). 110. Labor contact center account (55071). 111. Human services contact center account (55072). 112. Tax contact center account (55073). 113. Executive direction internal audit account (55251). 114. CIO Information technology centralized services account (55252). 115. Health insurance internal service account (55300). 116. Civil service employee benefits division administrative account (55301). 117. Correctional industries revolving fund (55350). 118. Employees health insurance account (60201). 119. Medicaid management information system escrow fund (60900). 120. Department of law civil recoveries account (55074). 121. Utility environmental regulatory account (21064). 122. New York state secure choice administrative account (23806). 123. New York state medical indemnity fund account (_____). 124. New York state cannabis revenue fund (_____). § 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, 2020, 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. S. 1509--C 165 A. 2009--C 2. An amount up to the unencumbered balance from the miscellaneous special revenue fund, business and licensing services account (21977), to the general fund. 3. $14,810,000 from the miscellaneous special revenue fund, code enforcement account (21904), to the general fund. 4. $3,000,000 from the general fund to the miscellaneous special revenue fund, tax revenue arrearage account (22168). Education: 1. $2,709,000,000 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. 2. $975,200,000 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. $161,600,000 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. $18,000,000 from the interactive fantasy sports fund, fantasy sports education account (24950), 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. 5. $36,211,000 from the charitable gifts trust fund, elementary and secondary education account (24901), to the general fund, for payment of general support for public schools pursuant to section 3609-a of the education law. 6. 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. 7. $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). 8. $900,000 from the general fund to the miscellaneous special revenue fund, Batavia school for the blind account (22032). 9. $900,000 from the general fund to the miscellaneous special revenue fund, Rome school for the deaf account (22053). 10. $343,400,000 from the state university dormitory income fund (40350) to the miscellaneous special revenue fund, state university dormitory income reimbursable account (21937). 11. $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. 12. $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, 2019 through March 31, 2020. S. 1509--C 166 A. 2009--C 13. $7,200,000 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). 14. $24,000,000 from any of the state education department's special revenue and internal service funds to the miscellaneous special revenue fund, indirect cost recovery account (21978) or to the federal miscella- neous operating grants fund, federal indirect cost recovery account. 15. $6,600,000 from any of the state education department's special revenue or internal service funds to the capital projects fund (30000). 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) OR Marine Resources Account (21151) 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). 6. $1,800,000 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). 9. $500,000 from the general fund to the enterprise fund, state fair account (50051). 10. $2,200,000 from the miscellaneous special revenue fund, public service account (22011) to the general fund. 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. S. 1509--C 167 A. 2009--C 4. $125,000,000 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. $24,000,000 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. $292,400,000 from the health insurance reserve receipts fund (60550) to the general fund. 4. $150,000 from the general fund to the not-for-profit revolving loan fund (20650). 5. $150,000 from the not-for-profit revolving loan fund (20650) to the general fund. 6. $3,000,000 from the miscellaneous special revenue fund, surplus property account (22036), to the general fund. 7. $19,000,000 from the miscellaneous special revenue fund, revenue arrearage account (22024), to the general fund. 8. $1,826,000 from the miscellaneous special revenue fund, revenue arrearage account (22024), to the miscellaneous special revenue fund, authority budget office account (22138). 9. $1,000,000 from the miscellaneous special revenue fund, parking services account (22007), to the general fund, for the purpose of reim- bursing the costs of debt service related to state parking facilities. 10. $9,632,000 from the general fund to the centralized services fund, COPS account (55013). 11. $13,854,000 from the general fund to the agencies internal service fund, central technology services account (55069), for the purpose of enterprise technology projects. 12. $10,000,000 from the general fund to the agencies internal service fund, state data center account (55062). 13. $20,000,000 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). 14. $12,000,000 from the miscellaneous special revenue fund, parking services account (22007), to the centralized services, building support services account (55018). 15. $30,000,000 from the general fund to the internal service fund, business services center account (55022). S. 1509--C 168 A. 2009--C 16. $8,000,000 from the general fund to the internal service fund, building support services account (55018). 17. $1,500,000 from the combined expendable trust, special events account (20120), to the general fund. 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). 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. 11. $59,000,000 from the charitable gifts trust fund, health charita- ble account (24900), to the general fund, for payment of general support for 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 state residents have access to quality health care and other related services. Labor: 1. $500,000 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). S. 1509--C 169 A. 2009--C 2. $3,800,000 from the general fund, to the agencies internal service fund, civil service EHS occupational health program account (55056). 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. $21,500,000 from the miscellaneous special revenue fund, criminal justice improvement account (21945), to the general fund. 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. $119,500,000 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. $17,080,000 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. $1,400,000 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. 14. $150,000 from the medical marihuana trust fund, law enforcement account (23753), to the general fund. 15. $25,000,000 from the miscellaneous special revenue fund, statewide public safety communications account (22123), to the general fund. 16. A transfer of the unencumbered balance from the miscellaneous special revenue fund, airport security account (22199), to the miscella- neous special revenue fund, securing the cities account. 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. $727,500,000 from the general fund to the dedicated highway and bridge trust fund (30050). S. 1509--C 170 A. 2009--C 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. 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, 2020: 1. Upon request of the commissioner of environmental conservation, up to $12,659,400 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 $1,831,600 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. S. 1509--C 171 A. 2009--C 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, 2020, 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, 2020, up to $16,000,000 from the state university income fund general revenue account (22653) to the state general fund for debt service costs related to campus supported capital project costs for the NY-SUNY 2020 challenge grant program at the University at Buffalo. § 7. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget and upon consultation with the state university chancellor or his or her designee, on or before March 31, 2020, 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, 2020. § 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 $1,017,062,300 from the general fund to the state university income fund, state university general revenue offset account (22655) during the period of July 1, 2019 through June 30, 2020 to support operations at the state university. § 10. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, up to $109,500,000 from the general fund to the state university income fund, state university general revenue offset account (22655) during the period of April 1, 2019 through June 30, 2019 to support operations at the state university. § 11. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized S. 1509--C 172 A. 2009--C and directed to transfer, upon request of the director of the budget, up to $20,000,000 from the general fund to the state university income fund, state university general revenue offset account (22655) during the period of July 1, 2019 to June 30, 2020 to support operations at the state university in accordance with the maintenance of effort pursuant to clause (v) of subparagraph (4) of paragraph h of subdivision 2 of section 355 of the education law. § 12. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the state university chancel- lor or his or her designee, up to $55,000,000 from the state university income fund, state university hospitals income reimbursable account (22656), for services and expenses of hospital operations and capital expenditures at the state university hospitals; and the state university income fund, Long Island veterans' home account (22652) to the state university capital projects fund (32400) on or before June 30, 2020. § 13. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller, after consultation with the state university chancellor or his or her designee, is hereby authorized and directed to transfer moneys, in the first instance, from the state university collection fund, Stony Brook hospital collection account (61006), Brooklyn hospital collection account (61007), and Syra- cuse hospital collection account (61008) to the state university income fund, state university hospitals income reimbursable account (22656) in the event insufficient funds are available in the state university income fund, state university hospitals income reimbursable account (22656) to permit the full transfer of moneys authorized for transfer, to the general fund for payment of debt service related to the SUNY hospitals. Notwithstanding any law to the contrary, the comptroller is also hereby authorized and directed, after consultation with the state university chancellor or his or her designee, to transfer moneys from the state university income fund to the state university income fund, state university hospitals income reimbursable account (22656) in the event insufficient funds are available in the state university income fund, state university hospitals income reimbursable account (22656) to pay hospital operating costs or to permit the full transfer of moneys authorized for transfer, to the general fund for payment of debt service related to the SUNY hospitals on or before March 31, 2020. § 14. Notwithstanding any law to the contrary, upon the direction of the director of the budget and the chancellor of the state university of New York or his or her designee, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer monies from the state university dormitory income fund (40350) to the state university residence hall rehabilitation fund (30100), and from the state university residence hall rehabilitation fund (30100) to the state university dormitory income fund (40350), in an amount not to exceed $80 million from each fund. § 15. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer monies, upon request of the director of the budget, on or before March 31, 2020, 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. S. 1509--C 173 A. 2009--C § 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 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 2019-20 budget. Transfers from federal funds, debt service funds, capital projects funds, the community projects fund, or funds that would result in the loss of eligibility for federal benefits or federal funds pursuant to federal law, rule, or regulation as assent- ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws of 1951 are not permitted pursuant to this authorization. § 16-a. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, at the request of the director of the budget, up to eighteen million dollars ($18,000,000) from the unen- cumbered balance of any special revenue fund or account, or combination of funds and accounts, to the community projects fund. The amounts transferred pursuant to this authorization shall be in addition to any other transfers expressly authorized in the 2019-20 budget. Transfers from federal funds, debt services funds, capital project funds, or funds that would result in the loss of eligibility for federal benefits or federal funds pursuant to federal law, rule, or regulation as assented to in chapter 683 of the laws of 1938 and chapter 700 of the laws of 1951 are not permitted pursuant to this authorization. The director of the budget shall (a) have received a request in writing from one or both houses of the legislature, and (b) notify both houses of the legislature in writing prior to initiating transfers pursuant to this authorization. The comptroller shall provide the director of the budget, the chair of the senate finance committee, and the chair of the assembly ways and means committee with an accurate accounting and report of any transfers that occur pursuant to this section on or before the fifteenth day of the following month in which such transfers occur. § 17. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, at the request of the director of the budget, up to $100 million from any non-general fund or account, or combination of funds and accounts, to the miscellaneous special revenue fund, tech- nology financing account (22207), the miscellaneous capital projects fund, information technology capital financing account (32215), or the centralized technology services account (55069), for the purpose of consolidating technology procurement and services. The amounts trans- ferred to the miscellaneous special revenue fund, technology financing account (22207) pursuant to this authorization shall be equal to or less than the amount of such monies intended to support information technolo- gy costs which are attributable, according to a plan, to such account made in pursuance to an appropriation by law. Transfers to the technolo- gy financing account shall be completed from amounts collected by non- general funds or accounts pursuant to a fund deposit schedule or perma- nent statute, and shall be transferred to the technology financing account pursuant to a schedule agreed upon by the affected agency commissioner. Transfers from funds that would result in the loss of eligibility for federal benefits or federal funds pursuant to federal law, rule, or regulation as assented to in chapter 683 of the laws of S. 1509--C 174 A. 2009--C 1938 and chapter 700 of the laws of 1951 are not permitted pursuant to this authorization. § 18. 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. § 19. 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, 2019, the proceeds of which will be utilized to support energy-related state activities. § 20. Notwithstanding any provision of law, rule or regulation to the contrary, the New York state energy research and development authority is authorized and directed to make the following contributions to the state treasury to the credit of the general fund on or before March 31, 2020: (a) $913,000; and (b) $23,000,000 from proceeds collected by the authority from the auction or sale of carbon dioxide emission allowances allocated by the department of environmental conservation. § 21. Subdivision 5 of section 97-rrr of the state finance law, as amended by section 22 of part BBB of chapter 59 of the laws of 2018, 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 [eighteen] NINETEEN, 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 [$2,458,909,000] $2,185,995,000, 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 [eighteen] NINETEEN. § 22. Notwithstanding any law to the contrary, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, on or before March 31, 2020, 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). S. 1509--C 175 A. 2009--C 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). 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). § 22-a. Intentionally omitted. § 23. 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 2020 reduce federal financial participation in Medicaid funding to New York state or its subdivisions by $850 million or more in state fiscal years 2019-20 or 2020-21, 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- 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. § 24. 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 2020 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 2019-20 or S. 1509--C 176 A. 2009--C 2020-21, 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. § 25. Intentionally omitted. § 26. Notwithstanding any other law, rule, or regulation to the contrary, the state comptroller is hereby authorized and directed to use any balance remaining in the mental health services fund debt service appropriation, after payment by the state comptroller of all obligations required pursuant to any lease, sublease, or other financing arrangement between the dormitory authority of the state of New York as successor to the New York state medical care facilities finance agency, and the facilities development corporation pursuant to chapter 83 of the laws of 1995 and the department of mental hygiene for the purpose of making payments to the dormitory authority of the state of New York for the amount of the earnings for the investment of monies deposited in the mental health services fund that such agency determines will or may have to be rebated to the federal government pursuant to the provisions of the internal revenue code of 1986, as amended, in order to enable such agency to maintain the exemption from federal income taxation on the interest paid to the holders of such agency's mental services facilities improvement revenue bonds. Annually on or before each June 30th, such agency shall certify to the state comptroller its determination of the amounts received in the mental health services fund as a result of the investment of monies deposited therein that will or may have to be rebated to the federal government pursuant to the provisions of the internal revenue code of 1986, as amended. § 27. 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 31 of part BBB of chapter 59 of the laws of 2018, 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 [five hundred forty million nine hundred fifty-four thousand] SIX HUNDRED SEVENTY-SEVEN MILLION THREE HUNDRED FIFTY-FOUR THOUSAND dollars, $677,354,000 exclud- ing 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 S. 1509--C 177 A. 2009--C 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. § 28. 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 32 of part BBB of chapter 59 of the laws of 2018, 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 [eight billion eighty-two million eight hundred ninety-nine thousand] EIGHT BILLION FOUR HUNDRED NINETY-FOUR MILLION NINE HUNDRED SEVENTY-NINE THOUSAND dollars [$8,082,899,000] $8,494,979,000, 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 appropriations or reappropri- ations made to the department of corrections and community supervision from the correctional facilities capital improvement 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 [eight billion eighty-two million eight hundred ninety-nine thousand] EIGHT BILLION FOUR HUNDRED NINETY-FOUR MILLION NINE HUNDRED SEVENTY-NINE THOU- SAND dollars [$8,082,899,000] $8,494,979,000, only if the present value of the aggregate debt service of the refunding or repayment bonds, notes or other obligations to be issued shall not exceed the present value of the aggregate debt service of the bonds, notes or other obligations so to be refunded or repaid. For the purposes hereof, the present value of the aggregate debt service of the refunding or repayment bonds, notes or other obligations and of the aggregate debt service of the bonds, notes or other obligations so refunded or repaid, shall be calculated by utilizing the effective interest rate of the refunding or repayment bonds, notes or other 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 S. 1509--C 178 A. 2009--C interest or proceeds received by the corporation including estimated accrued interest from the sale thereof. § 29. Paragraph (a) of subdivision 2 of section 47-e of the private housing finance law, as amended by section 33 of part BBB of chapter 59 of the laws of 2018, 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 nine hundred eighty-one million three hundred ninety-nine thousand] SIX BILLION ONE HUNDRED SEVENTY-EIGHT MILLION FIVE HUNDRED NINETY-NINE THOU- SAND dollars $6,178,599,000, 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 particular 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. § 30. 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 34 of part BBB of chapter 59 of the laws of 2018, 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 [$10,251,939,000] TEN BILLION SEVEN HUNDRED THIRTY-NINE MILLION FOUR HUNDRED SEVENTY-EIGHT THOUSAND DOLLARS $10,739,478,000 cumulatively by the end of fiscal year [2018-19] 2019-20. § 31. Subdivision 1 of section 1689-i of the public authorities law, as amended by section 35 of part BBB of chapter 59 of the laws of 2018, 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 S. 1509--C 179 A. 2009--C exceed a total principal amount of [two hundred seventeen million] TWO HUNDRED THIRTY-ONE MILLION dollars $231,000,000. § 32. 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 36 of part BBB of chapter 59 of the laws of 2018, 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 [$220,100,000 two hundred twenty million one hundred thousand] TWO HUNDRED SEVENTY-ONE MILLION SIX HUNDRED THOUSAND dollars $271,600,000, excluding bonds issued to finance one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued, for the purpose of financing capital projects including IT initiatives for the division of state police, debt service and leases; and to reimburse the state general fund for disbursements made therefor. Such bonds and notes of such authorized issuer shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by 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. § 33. Section 44 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, as amended by section 37 of part BBB of chapter 59 of the laws of 2018, 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 S. 1509--C 180 A. 2009--C 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 [eight billion three hundred million five hundred ninety thousand] NINE BILLION TWO HUNDRED ELEVEN MILLION SIX HUNDRED THIRTY-SIX THOUSAND dollars $9,211,636,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previ- ously 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 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 S. 1509--C 181 A. 2009--C 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. § 34. Subdivision (a) of section 1 of part X of chapter 59 of the laws of 2004, authorizing the New York state urban development corporation and the dormitory authority of the state of New York to issue bonds or notes, as amended by section 37-a of part BBB of chapter 59 of the laws of 2018, 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 [$293,325,000] TWO HUNDRED FORTY-THREE MILLION THREE HUNDRED TWENTY-FIVE THOUSAND DOLLARS $243,325,000, 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 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. § 35. Subdivision 3 of section 1285-p of the public authorities law, as amended by section 38 of part BBB of chapter 59 of the laws of 2018, 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 [five billion one hundred forty-seven million two hundred sixty thousand] FIVE BILLION SIX HUNDRED THIRTY-EIGHT MILLION TEN THOUSAND dollars $5,638,010,000, exclusive of bonds issued to fund S. 1509--C 182 A. 2009--C any debt service reserve funds, pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay bonds or notes previ- ously 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. § 36. 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 40 of part BBB of chapter 59 of the laws of 2018, 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 [$253,000,000 two-hundred fifty-three million] TWO HUNDRED EIGHT- Y-SIX MILLION dollars $286,000,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued, for the purpose of financing capital costs related to homeland security and training facilities for the division of state police, the division of military and naval affairs, and any other state agency, including the reimbursement of any disbursements made from the state capital projects fund, and is hereby authorized to issue bonds or notes in one or more series in an aggregate principal amount not to exceed [$748,800,000, seven hundred forty-eight million eight hundred thousand] $952,800,000 NINE HUNDRED FIFTY-TWO 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 to refund or otherwise repay such bonds or notes previ- ously 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. § 37. Subdivision 1 of section 386-b of the public authorities law, as amended by section 41 of part BBB of chapter 59 of the laws of 2018, 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 S. 1509--C 183 A. 2009--C billion five hundred million dollars $4,500,000,000] FOUR BILLION SIX HUNDRED TWENTY-EIGHT MILLION DOLLARS $4,628,000,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and to refund or otherwise repay such bonds or notes previously issued. Such bonds and notes of the authority, the dormitory authority and the urban development corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the authority, the dormitory authority and the urban develop- ment corporation for principal, interest, and related expenses pursuant to a service contract and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. § 38. Paragraph (c) of subdivision 19 of section 1680 of the public authorities law, as amended by section 42 of part BBB of chapter 59 of the laws of 2018, 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 [thirteen billion one hundred seventy-eight million eight hundred sixty-four thousand dollars $13,178,864,000] THIRTEEN BILLION EIGHT HUNDRED FORTY-ONE MILLION EIGHT HUNDRED SIXTY-FOUR THOUSAND DOLLARS $13,841,864,000; 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 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 S. 1509--C 184 A. 2009--C 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. § 39. Paragraph (c) of subdivision 14 of section 1680 of the public authorities law, as amended by section 43 of part BBB of chapter 59 of the laws of 2018, 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 [eight billion three hundred fourteen million six hundred ninety-one thousand dollars $8,314,691,000] EIGHT BILLION SIX HUNDRED SEVENTY-FOUR MILLION TWO HUNDRED FIFTY-SIX THOUSAND DOLLARS $8,674,256,000. 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. § 40. Subdivision 10-a of section 1680 of the public authorities law, as amended by section 44 of part BBB of chapter 59 of the laws of 2018, 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 sixty- eight million five hundred forty-two thousand dollars $968,542,000] ONE BILLION FIVE MILLION SIX HUNDRED TWO THOUSAND DOLLARS $1,005,602,000. 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. § 41. Subdivision 1 of section 17 of part D of chapter 389 of the laws of 1997, relating to the financing of the correctional facilities S. 1509--C 185 A. 2009--C improvement fund and the youth facility improvement fund, as amended by section 45 of part BBB of chapter 59 of the laws of 2018, 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 hundred [sixty- nine] FOUR million six hundred fifteen thousand dollars [($769,615,000)] $804,615,000, which authorization increases the aggregate principal amount of bonds, notes and other obligations authorized 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 deposit in the youth facili- ties 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 [seven] EIGHT hundred [sixty-nine] FOUR million six hundred fifteen thousand dollars [($769,615,000)] $804,615,000, 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 obli- gations so to be refunded or repaid. For the purposes hereof, the pres- ent 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 refund- ing or repayment bonds, notes or other obligations from the payment dates thereof to the date of issue of the refunding or repayment bonds, notes or other obligations and to the price bid including estimated accrued interest or proceeds received by the corporation including esti- mated accrued interest from the sale thereof. § 42. 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 46 of part BBB of chapter 59 of the laws of 2018, 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, S. 1509--C 186 A. 2009--C 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 seven hundred seventy-eight million seven hundred eleven thousand] NINE BILLION THREE HUNDRED THIRTY-THREE MILLION THREE HUNDRED EIGHT THOUSAND dollars $9,333,308,000, excluding mental health services facilities improvement bonds and mental health services facilities improvement notes issued to refund outstanding mental health services facilities improvement bonds and mental health services facili- ties improvement notes; provided, however, that upon any such refunding or repayment of mental health services facilities improvement bonds and/or mental health services facilities improvement notes the total aggregate principal amount of outstanding mental health services facili- ties improvement bonds and mental health facilities improvement notes may be greater than [eight billion seven hundred seventy-eight million seven hundred eleven thousand dollars $8,778,711,000] NINE BILLION THREE HUNDRED THIRTY-THREE MILLION THREE HUNDRED EIGHT THOUSAND DOLLARS $9,333,308,000, 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 present value of the aggregate debt service of the refunding or repayment bonds to be issued shall not exceed the present value of the aggregate debt service of the bonds to be refunded or repaid. For purposes hereof, the present values of the aggregate debt service of the refunding or repayment bonds, notes or other obligations and of the aggregate debt service of the bonds, notes or other obligations so refunded or repaid, shall be calculated by utilizing the effective interest rate of the refunding or repayment bonds, notes or other obligations, which shall be that rate arrived at by doubling the semi-annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the 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 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 certified by the facili- ties 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 S. 1509--C 187 A. 2009--C from the date of the original issue of such notes. Notwithstanding the provisions of this section, the agency shall have the power and is here- by 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 commissioners to finance bondable appropriations previously approved by the legislature. § 43. 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 49 of part BBB of chapter 59 of the laws of 2018, 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 [$67,000,000, sixty-seven million] NINETY-TWO MILLION dollars $92,000,000, excluding bonds issued to finance one or more debt service reserve funds, to pay costs of issu- ance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued, for the purpose of financ- ing 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. § 44. Subdivision 1 of section 386-a of the public authorities law, as amended by section 61 of part BBB of chapter 59 of the laws of 2018, 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 OR OTHER CAPITAL PROJECTS. The aggregate principal amount of bonds authorized to be issued pursuant to this section shall not exceed [one billion six hundred ninety-four million dollars $1,694,000,000] TWO BILLION ONE HUNDRED SEVENTY-NINE MILLION EIGHT HUNDRED FIFTY-SIX THOUSAND DOLLARS $2,179,856,000, 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 S. 1509--C 188 A. 2009--C notes of the authority, the dormitory authority and the urban develop- ment 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. § 45. Subdivision 1 of section 50 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 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 undertaken by or on behalf of special act school districts, state-supported schools for the blind and deaf, approved private special education schools, non-public schools, communi- ty centers, day care facilities, and other state costs associated with such capital projects. The aggregate principal amount of bonds author- ized to be issued pursuant to this section shall not exceed [fifty-five million dollars] ONE HUNDRED TEN MILLION DOLLARS $110,000,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued. Such bonds and notes of the dormitory authority and the urban development corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the dormitory authority and the urban development corporation for principal, interest, and related expenses pursuant to a service contract and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. § 46. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 53 to read as follows: § 53. 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 ACQUISITION OF EQUIPMENT, INCLUDING BUT NOT LIMITED TO THE CREATION OR MODERNIZATION OF INFORMA- TION TECHNOLOGY SYSTEMS AND RELATED RESEARCH AND DEVELOPMENT EQUIPMENT, HEALTH AND SAFETY EQUIPMENT, HEAVY EQUIPMENT AND MACHINERY, THE CREATION OR IMPROVEMENT OF SECURITY SYSTEMS, AND LABORATORY EQUIPMENT 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 NINETY-THREE MILLION DOLLARS $93,000,000, EXCLUDING BONDS ISSUED TO FUND ONE OR MORE DEBT SERVICE RESERVE FUNDS, TO PAY COSTS OF ISSUANCE OF SUCH BONDS, AND BONDS OR NOTES ISSUED TO REFUND OR OTHERWISE REPAY SUCH BONDS OR NOTES PREVIOUSLY ISSUED. 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 S. 1509--C 189 A. 2009--C APPROPRIATED BY THE STATE TO THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION FOR PRINCIPAL, INTEREST, AND RELATED EXPENSES PURSUANT TO A SERVICE CONTRACT AND SUCH BONDS AND NOTES SHALL CONTAIN ON THE FACE THEREOF A STATEMENT TO SUCH EFFECT. EXCEPT FOR PURPOSES OF COMPLYING WITH THE INTERNAL REVENUE CODE, ANY INTEREST INCOME EARNED ON BOND PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH BONDS. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN ORDER TO ASSIST THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPO- RATION IN UNDERTAKING THE FINANCING FOR PROJECT COSTS FOR THE ACQUISI- TION OF EQUIPMENT, INCLUDING BUT NOT LIMITED TO THE CREATION OR MODERN- IZATION OF INFORMATION TECHNOLOGY SYSTEMS AND RELATED RESEARCH AND DEVELOPMENT EQUIPMENT, HEALTH AND SAFETY EQUIPMENT, HEAVY EQUIPMENT AND MACHINERY, THE CREATION OR IMPROVEMENT OF SECURITY SYSTEMS, AND LABORA- TORY EQUIPMENT AND OTHER STATE COSTS ASSOCIATED WITH SUCH CAPITAL PROJECTS, THE DIRECTOR OF THE BUDGET IS HEREBY AUTHORIZED TO ENTER INTO ONE OR MORE SERVICE CONTRACTS WITH THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION, NONE OF WHICH SHALL EXCEED THIRTY YEARS IN DURATION, UPON SUCH TERMS AND CONDITIONS AS THE DIRECTOR OF THE BUDGET AND THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION AGREE, SO AS TO ANNUALLY PROVIDE TO THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION, IN THE AGGREGATE, A SUM NOT TO EXCEED THE PRIN- CIPAL, 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 URBAN DEVELOPMENT CORPORATION AS SECURITY FOR ITS BONDS AND NOTES, AS AUTHORIZED BY THIS SECTION. § 46-a. 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 50 of part BBB of chapter 59 of the laws of 2018, 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 two billion [three] FOUR hundred [twenty-three] THIR- TEEN 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. S. 1509--C 190 A. 2009--C § 47. Subdivision 2 and paragraph (a) of subdivision 4 of section 1680-q of the public authorities law, as added by section 4 of part B of chapter 57 of the laws of 2013, are amended to read as follows: 2. The authority may, from and after April first, two thousand thir- teen, issue dormitory facility revenue bonds in an amount not to exceed [nine hundred forty-four] ONE BILLION THREE HUNDRED NINETY-FOUR million dollars. Notwithstanding any other rule or law, such bonds shall not be a debt of the state of New York or the state university nor shall the state or the state university be liable thereon, nor shall they be paya- ble out of any funds other than those of the authority constituting dormitory facilities revenues. Such amount shall be exclusive of bonds and notes issued to fund any reserve fund or funds, cost of issuance, original issue premium, and to refund any prior dormitory facility bonds or any dormitory facility revenue bonds. The authority and the state university are hereby authorized to enter into agreements relating to, among other things, the acquisition of property or interests therein, the construction, reconstruction, rehabilitation, improvement, equipping and furnishing of dormitory facilities, the operation and maintenance of dormitory facilities, and the billing, collection and disbursement of dormitory facilities revenues, the title to which has been conveyed, assigned or otherwise transferred to the authority pursuant to paragraph y of subdivision two of section three hundred fifty-five of the educa- tion law. In no event shall the state university have any obligation under the agreement to make payment with respect to, on account of or to pay dormitory facilities revenue bonds, and such bonds shall be payable solely from the dormitory facilities revenues assigned to the authority by the state university. No debt shall be contracted except to finance capital works or purposes. Notwithstanding any other provision of law, dormitory facility revenues shall not be deemed to be revenues of the state. Notwithstanding any other rule or law, the state shall not be liable for any payments on any dormitory facility revenue bonds, and such bonds shall not be a debt of the state and shall not be payable out of any funds other than the dormitory facilities revenues assigned to the authority by the state university. (a) The dormitory authority, in consultation with the state university of New York, shall prepare an annual report due on September thirtieth, commencing on September thirtieth, two thousand fourteen, of every calendar year relating to the provisions of paragraph y of subdivision two of section three hundred fifty-five of the education law [as added by a chapter of the laws of two thousand thirteen which added this section]; subdivision eight of section three hundred fifty-five of the education law [as amended by a chapter of the laws of two thousand thir- teen which added this section]; and this section. The report shall include, but not be limited to: (i) the total dormitory facilities revenues assigned or otherwise transferred from the state university of New York to the dormitory authority in the prior state university fiscal year and the sum of such transfers made in the five prior fiscal years; (ii) the sum of monies, if any, transferred to the state university of New York from the dormitory facilities revenue fund in the prior state university fiscal year; (iii) a list of any increase in rents, fees and other charges that relate to dormitory facilities per campus to students; (iv) a summary of all costs associated with the construction, reconstruction, rehabilitation, improvement, equipping, furnishing, repair, maintenance and operations of dormitory facilities that the dormitory authority funded with dormitory facilities revenues and the proceeds of dormitory facility revenue bonds; (v) a summary and justi- S. 1509--C 191 A. 2009--C fication of dormitory authority administrative expenses and costs incurred related to the dormitory facilities revenue fund; (vi) the issuance amounts, debt service costs and savings, if any, of all state university of New York dormitory bonds issued prior to April first, two thousand thirteen and refinanced by the dormitory authority with dormi- tory facility revenue bonds; (vii) total amount of debt service payments made per year on dormitory facility revenue bonds; and (viii) an esti- mated date when the dormitory authority will reach the [nine hundred forty-four million dollar] cap on dormitory facility revenue bonds. § 48. Paragraphs b and f of subdivision 3 of section 9 of section 1 of chapter 359 of the laws of 1968 constituting the facilities development corporation act, paragraph b as amended by chapter 236 of the laws of 2005 and paragraph f as amended by chapter 58 of the laws of 1987, are amended and a new paragraph g is added to read as follows: b. All monies of the corporation received or accepted pursuant to paragraph a of this subdivision, other than appropriations and advances from the state and except as otherwise authorized or provided in this section, shall be paid to the commissioner of taxation and finance as agent of the corporation, who shall not commingle such monies with any other monies. Such monies shall be deposited in two or more separate bank accounts. One of such accounts, to which shall be credited (i) all payments made on or after January 1, 1964, for the care, maintenance and treatment of patients in every mental hygiene facility, other than a community mental health and retardation facility, (ii) all payments made to the corporation as rentals, lease payments, permit fees or otherwise under any lease, sublease or agreement undertaken with respect to a community mental health and retardation facility or a current or former mental hygiene facility, (iii) all payments made to the corporation for the purchase of real property held by the corporation for the use of the department, other than payments derived from New York state medical care facilities finance agency financing or refinancing of the design, construction, acquisition, reconstruction, rehabilitation, improvement or renovation of state operated mental hygiene facilities, (iv) all income from investments and (v) all monies received or to be received for the purposes of such account on a recurring basis, shall be denomi- nated the "mental hygiene facilities improvement fund income account". The monies in any account shall be paid out on checks signed by the commissioner of taxation and finance on requisition of the chairman of the corporation or of such other officer or employee or officers or employees as the corporation shall authorize to make such requisition. All deposits of such money shall, if required by the commissioner of taxation and finance or the directors of the corporation, be secured by obligations of the United States or of the state of a market value equal at all times to the amount of the deposit and all banks and trust compa- nies are authorized to give such security for such deposits. Any moneys of the corporation not required for immediate use or disbursement may, at the discretion of the corporation, be invested by the commissioner of taxation and finance in accordance with the provisions of section 98-a of the state finance law. [When the corporation is no longer required to make any rental payments under any lease, sublease or agreement entered into with the state housing finance agency in effect as of the effective date of this amendment to this paragraph, all monies received or accepted pursuant to paragraph a of this subdivision, other than appro- priations and advances from the state and except as otherwise authorized or provided in this section, shall be deposited into the mental health services fund established by section 97-f of the state finance law. Any S. 1509--C 192 A. 2009--C monies remaining in the mental hygiene facilities improvement fund income account and in any rental reserve account created pursuant to paragraph c of subdivision 4 of this section, when such lease, sublease or agreement is no longer in effect shall be deposited in the mental health services fund.] THE MENTAL HYGIENE FACILITIES IMPROVEMENT FUND AND THE INCOME ACCOUNT THEREIN SHALL REMAIN IN EXISTENCE UNTIL TERMI- NATED BY THE CORPORATION BY WRITTEN NOTICE TO THE COMMISSIONER OF TAXA- TION AND FINANCE. ANY MONEYS ON DEPOSIT IN THE MENTAL HYGIENE FACILITIES IMPROVEMENT FUND OR THE INCOME ACCOUNT THEREIN UPON THE TERMINATION OF SAID FUND AND ACCOUNT SHALL BE TRANSFERRED BY THE COMMISSIONER OF TAXA- TION AND FINANCE TO THE MENTAL HEALTH SERVICES FUND. THE CORPORATION SHALL NOT TERMINATE THE MENTAL HYGIENE FACILITIES IMPROVEMENT FUND AND THE INCOME ACCOUNT THEREIN UNTIL ALL MENTAL HEALTH SERVICES FACILITIES BONDS ISSUED PURSUANT TO: (I) THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY ACT; (II) ARTICLE FIVE-C OF THE STATE FINANCE LAW; AND (III) ARTICLE FIVE-F OF THE STATE FINANCE LAW AND PAYABLE FROM THE INCOME ACCOUNT AS DESCRIBED IN PARAGRAPH G OF THIS SUBDIVISION ARE NO LONGER OUTSTANDING. f. The directors of the corporation shall from time to time, but in no event later than the fifteenth day of each month pay over to the commis- sioner of taxation and finance and the state comptroller for deposit in the mental health services fund, all monies of the corporation in excess of the aggregate amount of money required to be maintained on deposit in the mental hygiene facilities improvement fund income account pursuant to [paragraph] PARAGRAPHS e AND G of this subdivision. Prior to making any such payment, the chairman of the corporation shall, on behalf of the directors, make and deliver to the governor and the director of the budget his certificate stating the aggregate amount to be maintained on deposit in the mental hygiene facilities improvement fund income account to comply in full with the provisions of [paragraph e] PARAGRAPHS E AND G of this subdivision. G. (1) IN ADDITION TO THE AMOUNT REQUIRED TO BE MAINTAINED BY PARA- GRAPH E OF THIS SUBDIVISION, THERE SHALL BE ACCUMULATED AND SET ASIDE IN EACH MONTH IN THE MENTAL HYGIENE FACILITIES IMPROVEMENT FUND INCOME ACCOUNT, ALL RECEIPTS ASSOCIATED WITH LOANS, LEASES AND OTHER AGREEMENTS WITH VOLUNTARY AGENCIES. THE CORPORATION SHALL PROVIDE THE AMOUNT OF SUCH RECEIPTS TO BE SET ASIDE TO THE COMMISSIONER OF TAXATION AND FINANCE IN EACH MONTH. (2) NO LATER THAN FIVE DAYS PRIOR TO THE EARLIER OF WHEN PAYMENT IS TO BE MADE ON BONDS ISSUED FOR MENTAL HEALTH SERVICES FACILITIES PURPOSES PURSUANT TO: (I) THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY ACT; (II) ARTICLE FIVE-C OF THE STATE FINANCE LAW; AND (III) ARTICLE FIVE-F OF THE STATE FINANCE LAW, SUCH SET-ASIDE RECEIPTS SHALL BE TRANSFERRED BY THE COMMISSIONER OF TAXATION AND FINANCE AS AGENT OF THE CORPORATION FROM THE MENTAL HYGIENE FACILITIES IMPROVEMENT FUND INCOME ACCOUNT IN THE AMOUNTS SET FORTH IN SCHEDULES PROVIDED BY THE CORPORATION TO THE COMMISSIONER OF TAXATION AND FINANCE IN THE FOLLOWING PRIORITY: FIRST, TO THE TRUSTEE APPOINTED BY THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY FOR THE BONDS ISSUED PURSUANT TO THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY ACT FOR BOTH VOLUNTARY AGENCY AND STATE PURPOSES TO PAY DEBT SERVICE AND OTHER CASH REQUIREMENTS DUE ON SUCH BONDS ON THE RELEVANT PAYMENT DATE, SECOND, ANY REMAINING AMOUNT OF SUCH SET-ASIDE RECEIPTS TO THE TRUSTEE APPOINTED BY AUTHORIZED ISSUERS FOR THE BONDS ISSUED PURSUANT TO ARTICLE FIVE-C OF THE STATE FINANCE LAW TO PAY DEBT SERVICE AND OTHER CASH REQUIREMENTS DUE ON SUCH BONDS ON THE RELEVANT PAYMENT DATE AND THIRD, ANY REMAINING AMOUNT OF SUCH SET-ASIDE TO THE TRUSTEE APPOINTED BY S. 1509--C 193 A. 2009--C AUTHORIZED ISSUERS FOR THE BONDS ISSUED PURSUANT TO ARTICLE FIVE-F OF THE STATE FINANCE LAW TO PAY DEBT SERVICE AND OTHER CASH REQUIREMENTS DUE ON SUCH BONDS ON THE RELEVANT PAYMENT DATE. § 49. Subdivisions 5 and 8 of section 97-f of the state finance law, subdivision 5 as amended by section 15 of part BBB of chapter 59 of the laws of 2018 and subdivision 8 as amended by section 59 of part HH of chapter 57 of the laws of 2013, are amended and a new subdivision 9 is added 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 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] SUBJECT TO SUBDIVISION NINE OF THIS SECTION, THE amount required to be main- tained in such fund shall be (i) twenty percent of the amount of the next payment coming due relating to the mental health services facili- ties 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 facil- ities development corporation and the New York state medical care facil- ities 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.] CONCURRENTLY WITH THE MAKING OF ANY SUCH PAYMENT, THE FACILITIES DEVELOPMENT CORPORATION SHALL DELIVER TO THE COMPTROLLER, THE DIRECTOR OF THE BUDGET 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. 8. In addition to the amounts required to be maintained on deposit in the mental health services fund pursuant to subdivision five of this section AND SUBJECT TO SUBDIVISION NINE OF THIS SECTION, the fund shall maintain on deposit an amount equal to the debt service and other cash requirements on mental health services facilities bonds issued by authorized issuers pursuant to sections sixty-eight-b and sixty-nine-n of this chapter. 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 mental health services facilities bonds issued by an author- ized issuer multiplied by the number of months from the date of the last such payment with respect to payments required to be made semi-annually, plus (ii) those amounts specified in any financing agreement between the issuer and the state, acting through the director of the budget, 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 agen- cy, a certificate stating the aggregate amount to be maintained on deposit in the mental health services fund to comply in full with the S. 1509--C 194 A. 2009--C provisions of this subdivision.] CONCURRENTLY WITH THE MAKING OF ANY SUCH PAYMENT, THE FACILITIES DEVELOPMENT CORPORATION SHALL DELIVER TO THE COMPTROLLER, THE DIRECTOR OF THE BUDGET AND THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY A CERTIFICATE STATING THE AGGRE- GATE AMOUNT TO BE MAINTAINED ON DEPOSIT IN THE MENTAL HEALTH SERVICES FUND TO COMPLY IN FULL WITH THE PROVISIONS OF THIS SUBDIVISION. No later than five days prior to the payment to be made by the state comptroller on such mental health services facilities bonds pursuant to sections ninety-two-z and ninety-two-h of this article, the amount of such payment shall be transferred by the state comptroller from the mental health services fund to the revenue bond tax fund established by section ninety-two-z of this article AND THE SALES TAX REVENUE BOND FUND ESTABLISHED BY SECTION NINETY-TWO-H OF THIS ARTICLE. The accumulation of moneys pursuant to this subdivision and subsequent transfer to the revenue bond tax fund AND THE SALES TAX REVENUE BOND FUND shall be subordinate in all respects to payments to be made to the New York state medical care facilities finance agency and to any pledge or assignment pursuant to subdivision six of this section. 9. IN DETERMINING THE AMOUNTS REQUIRED TO BE MAINTAINED IN THE MENTAL HEALTH SERVICES FUND UNDER SUBDIVISIONS FIVE AND EIGHT OF THIS SECTION IN EACH MONTH, THE AMOUNT OF RECEIPTS ASSOCIATED WITH LOANS, LEASES AND OTHER AGREEMENTS WITH VOLUNTARY AGENCIES ACCUMULATED AND SET ASIDE IN THE MENTAL HYGIENE FACILITIES IMPROVEMENT FUND INCOME ACCOUNT UNDER PARAGRAPH G OF SUBDIVISION THREE OF SECTION NINE OF THE FACILITIES DEVELOPMENT CORPORATION ACT SHALL BE TAKEN INTO ACCOUNT AS A CREDIT BUT ONLY IF SUCH CREDITING DOES NOT RESULT IN THE AMOUNTS REQUIRED TO BE MAINTAINED IN THE MENTAL HEALTH SERVICES FUND EXCLUSIVE OF ANY CREDIT TO BE LESS THAN THE AMOUNT REQUIRED UNDER SUBDIVISION FIVE OF THIS SECTION IN EACH MONTH. § 49-a. Notwithstanding any provision of law to the contrary, if the financial plan required under sections twenty-two or twenty-three of this article estimates that the General Fund is reasonably anticipated to end the fiscal year with an imbalance of $500 million or more, the director of the division of the budget shall prepare a plan that shall be submitted to the legislature, which shall identify the general fund and state special revenue fund aid to localities appropriations and related disbursements that may be reduced to eliminate the imbalance identified in the General Fund, provided, however, that the total reduction in disbursements identified in such plan shall not exceed an amount equal to 1.0 percent of estimated disbursements in state operat- ing funds for fiscal year 2019-2020. The legislature shall have 30 days after such submission to either prepare its own plan, which may be adopted by concurrent resolution passed by both houses and implemented by the division of the budget, of if after 30 days the legislature fails to adopt its own plan, the reductions to the general fund and state special revenue fund aid to localities appropriations and related disbursements identified in the division of the budget plan will go into effect automatically. To the extent the State is obligated to make payment to any individual or entity pursuant to any appropriation to which an adjustment or reduction is applied in accordance with this section, such obligation shall be reduced commensurate with any adjust- ments or reductions made by the director of the budget and/or by the legislature. The following types of appropriations shall be exempt from reduction in any plan prepared by the budget director and/or any plan adopted by the legislature: (a) public assistance payments for families and individuals and payments for eligible aged, blind and disabled S. 1509--C 195 A. 2009--C persons related to supplemental social security; (b) any reductions that would violate federal law; (c) payments of debt service and related expenses for which the state is constitutionally obligated to pay debt service or is contractually obligated to pay debt service, subject to an appropriation, including where the state has a contingent contractual obligation; and (d) payments the state is obligated to make pursuant to court orders or judgments. The provisions of this section shall expire after March 31, 2020. § 50. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2019; provided, however, that the provisions of sections one, one-a, one-b, two, three, four, five, six, seven, eight, thirteen, fourteen, fifteen, sixteen, seventeen, eighteen, nineteen, twenty, twenty-two, twenty-three, twen- ty-four and forty-nine-a of this act shall expire March 31, 2020 when upon such date the provisions of such sections shall be deemed repealed. PART UUU Section 1. Part II of a chapter of the laws of 2019 amending chapter 141 of the laws of 1994 amending the legislative law and the state finance law relating to the operation and administration of the legisla- ture relating to extending such provisions, as proposed in legislative bill numbers S.1507-C and A.2007-C, is amended by adding a new section 1-a to read as follows: § 1-A. THIS ACT SHALL NOT SUPERSEDE THE FINDINGS AND DETERMINATIONS MADE BY THE COMPENSATION COMMITTEE AS AUTHORIZED PURSUANT TO PART HHH OF CHAPTER 59 OF THE LAWS OF 2018 UNLESS A COURT OF COMPETENT JURISDICTION DETERMINES THAT SUCH FINDINGS AND DETERMINATIONS ARE INVALID OR OTHER- WISE NOT APPLICABLE OR IN FORCE. § 2. This act shall take effect on the same date and in the same manner as Part II of a chapter of the laws of 2019 amending 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 relating to extending such provisions, as proposed in legislative bill numbers S.1507-C and A.2007-C, takes effect. PART VVV Section 1. Subdivision 7 of section 3 of part E of chapter 60 of the laws of 2015, establishing a commission on legislative, judicial and executive compensation, and providing for the powers and duties of the commission and for the dissolution of the commission, is amended to read as follows: 7. The commission shall make a report to the governor, the legislature and the chief judge of the state of its findings, conclusions, determi- nations and recommendations, if any, not later than the thirty-first of December of the year in which the commission is established for judicial compensation and the fifteenth of November the following year for legis- lative and executive compensation. Any findings, conclusions, determi- nations and recommendations in the report must be adopted by a majority vote of the commission and [findings, conclusions, determinations and recommendations with respect to executive and legislative compensation] shall also be supported by at least one member appointed by each appointing authority. Each recommendation made to implement a determi- nation pursuant to section two of this act shall have the force of law, and shall supersede, where appropriate, inconsistent provisions of arti- S. 1509--C 196 A. 2009--C cle 7-B of the judiciary law, section 169 of the executive law, and sections 5 and 5-a of the legislative law, unless modified or abrogated by statute prior to April first of the year as to which such determi- nation applies to judicial compensation and January first of the year as to which such determination applies to legislative and executive compen- sation. § 2. This act shall take effect immediately. PART WWW Section 1. Section 17 of part F of chapter 60 of the laws of 2015, constituting the infrastructure investment act, as amended by section 14 of part RRR of chapter 59 of the laws of 2017, is amended to read as follows: § 17. This act shall take effect immediately and shall expire and be deemed repealed [4] 6 years after such date, provided that, projects with requests for qualifications issued prior to such repeal shall be permitted to continue under this act notwithstanding such repeal. § 2. Section 12 of part H of chapter 58 of the laws of 2016, consti- tuting the transformational economic development infrastructure and revitalization projects act, is amended to read as follows: § 12. This act shall take effect immediately and shall expire and be deemed repealed [3] 5 years after such date, provided that, projects with requests for qualifications issued prior to such repeal shall be permitted to continue under this act notwithstanding such repeal. § 3. This act shall take effect immediately. PART XXX Section 1. (a) Establishment of commission. The state shall establish a system of voluntary public campaign financing for statewide and state legislative public offices. There is hereby established a public campaign financing and election commission to examine, evaluate and make recommendations for new laws with respect to how the State should imple- ment such a system of voluntary public campaign financing for state legislative and statewide public offices, and what the parameters of such a program should be. The commission shall make its recommendations in furtherance of the goals of incentivizing candidates to solicit small contributions, reducing the pressure on candidates to spend inordinate amounts of time raising large contributions for their campaigns, and encouraging qualified candidates to run for office. The commission shall also review and recommend changes to certain aspects of the state election law as detailed herein. The commission's report is due by December 1, 2019 and shall have the full effect of law unless modified or abrogated by statute prior to December 22, 2019. (b) Members of commission. The commission shall be comprised of nine members, two of which shall be appointed by the governor, two of which shall be appointed by the senate majority leader, two of which shall be appointed by the speaker of the assembly, one of which shall be appointed by the senate minority leader, and one of which shall be appointed by the assembly minority leader. The governor, senate majority leader, and speaker of the assembly shall jointly appoint a ninth member to serve on the commission. The commission shall not be fully consti- tuted without the appointment of the ninth member. There shall be no chairperson appointed, and the commission shall be governed by a majori- ty vote, and at all times the commission shall act with a quorum. S. 1509--C 197 A. 2009--C 2. The commission shall specifically determine and identify all details and components reasonably related to administration of a public financing program, and shall also specifically determine and identify new election laws in the following areas: (a) ratio of public matching funds to small contributions; (b) limits on total receipt of public funds depending on the office sought by a candidate under the program, including geographic differ- ences in such limits, if any; (c) candidate eligibility thresholds for the program; (d) contribution limits applicable to candidates participating in the program; (e) eligible uses of matchable contributions and public funds; contributions to participating candidates above the matchable portion shall be governed by election law § 14-130; (f) related conditions of compliance with the program; (g) an appropriate state agency to oversee administration and enforce- ment of the program, or recommendation of a new agency if the commission deems such recommendation appropriate; (h) resources necessary to administer and enforce the program; (i) effective date of the program; (j) rules and definitions governing: candidates' eligibility for public financing; political party qualifications; multiple party candi- date nominations and/or designations; and civil violations of public financing rules. 3. The commission shall limit its recommendations to a public financ- ing program that has a total maximum annual fiscal cost of no more than 100 million dollars. 4. (a) The commission 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 commission may hold additional public hearings as it deems necessary. Such additional hearings, if any, may allow for an opportunity to provide public comments. (b) The members of the commission 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 commission from receiving his or her salary earned by reason of their state employee position. (c) No member of the commission shall be disqualified from holding any other public office or public employment, nor shall he or she forfeit any such public office or public 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 char- ter. No person who holds a party position shall be prohibited or disqualified from serving as a member of the commission. (d) To the maximum extent feasible, the commission shall be entitled to request and receive and shall utilize and be provided with such facilities, resources and data of any court, department, division, board, bureau, commission, agency or public authority of the state or any political subdivision thereof as it may reasonably request to prop- erly carry out its powers and duties pursuant to this act. (e) The commission may request, and shall receive, reasonable assist- ance from state agency personnel as is necessary for the performance of its function, including legal guidance as is necessary from legislative and executive counsel. S. 1509--C 198 A. 2009--C 5. The commission shall make a report to the governor and the legisla- ture of its findings, conclusions, determinations and recommendations and shall submit such report by December 1, 2019. Any findings, conclusions, determinations and recommendations in the report must be adopted by a majority vote of the commission. Each member of the commission shall report their vote and describe their reasoning for their determination. The commission may report recommendations supported by a majority. Each recommendation made to implement a determination pursuant to this act shall have the force of law, and shall supersede, where appropriate, inconsistent provisions of the election law, unless modified or abrogat- ed by statute prior to December 22, 2019. § 2. If any clause, sentence, subdivision, paragraph, section or part of this act 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, subdivision, paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. § 3. This act shall take effect immediately. While any recommendation contained within the commission's final report that is made to implement a determination pursuant to this act shall remain law, the commission itself, as created herein, shall expire and be deemed repealed on and after December 31, 2019. PART YYY Section 1. Paragraph e of subdivision 1 of section 211-d of the educa- tion law, as amended by section 1 of part CCC of chapter 59 of the laws of 2018, 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- 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 S. 1509--C 199 A. 2009--C 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 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; AND PROVIDED FURTHER THAT, A S. 1509--C 200 A. 2009--C SCHOOL DISTRICT THAT SUBMITTED A CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR, UNLESS ALL SCHOOLS IN THE DISTRICT ARE IDENTIFIED AS IN GOOD STANDING, SHALL SUBMIT A CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY 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 EIGHTEEN--TWO THOUSAND NINETEEN 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 adjust- ment computed pursuant to chapter fifty-three of the laws of two thou- sand eleven, making appropriations for the local assistance budget, including support for general support for public schools. Provided, further, that such amount shall be expended to support and maintain allowable programs and activities approved in the two thousand nine--two thousand ten school year or to support new or expanded allowable programs and activities in the current year. § 2. Section 3614 of the education law, as added by section 4 of part CCC of chapter 59 of the laws of 2018, is amended 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 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 pursuant 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 allo- cation for each school in the district for the upcoming school budget year [prior to the first day of] ON OR BEFORE THE FRIDAY PRIOR TO LABOR 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 S. 1509--C 201 A. 2009--C 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] FORTY-FIVE 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] FORTY-FIVE days of submission of the statement, such statement shall be deemed approved. Should the commissioner or the director of the budget request additional information from the school district to determine complete- ness, THE DISTRICT SHALL SUBMIT SUCH REQUESTED INFORMATION TO THE COMMISSIONER AND THE DIRECTOR OF THE BUDGET WITHIN THIRTY DAYS OF SUCH REQUEST AND the COMMISSIONER AND THE DIRECTOR OF THE BUDGET'S deadline FOR REVIEW AND DETERMINATION shall be extended by [thirty] FORTY-FIVE days from the date of submission of the additional requested informa- tion. 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] ON OR BEFORE THE FRIDAY PRIOR TO LABOR DAY of such school year or if the commissioner or director of the budget determine the school district's spending statement to be noncompliant, 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, AT THE JOINT DIRECTION OF THE DIRECTOR OF THE BUDGET AND THE COMMISSION- ER, the comptroller of the city in which such school district is situ- ated, or if the city does not have an elected comptroller, 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 commissioner 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. 3. A. FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR AND THEREAFTER, ANY SCHOOL DISTRICT THAT IS REQUIRED TO SUBMIT A STATE- MENT UNDER SUBDIVISION ONE OF THIS SECTION FOR THE BASE YEAR WITH AN UNDERFUNDED HIGH-NEED SCHOOL SHALL PRIORITIZE ALL SUCH UNDERFUNDED HIGH- S. 1509--C 202 A. 2009--C NEED SCHOOLS AMONG ITS INDIVIDUAL SCHOOLS, AND SHALL SUBMIT TO THE COMMISSIONER ON OR BEFORE SEPTEMBER FIRST OF THE CURRENT YEAR A REPORT SPECIFYING HOW SUCH DISTRICT EFFECTUATED APPROPRIATE FUNDING FOR THE UNDERFUNDED HIGH-NEED SCHOOLS. B. ON OR BEFORE MAY FIRST OF THE BASE YEAR, THE DIRECTOR OF THE BUDGET SHALL PRODUCE A LIST OF UNDERFUNDED HIGH-NEED SCHOOLS, AS DEFINED IN PARAGRAPH C OF THIS SUBDIVISION. PROVIDED, HOWEVER, THAT THE DIRECTOR OF THE BUDGET SHALL EXCLUDE FROM THIS LIST SCHOOLS WITHIN DISTRICT SEVEN- TY-FIVE OF THE CITY SCHOOL DISTRICT OF NEW YORK, SCHOOLS THAT ARE OF THE SAME SCHOOL TYPE WITHIN A DISTRICT BUT DO NOT SERVE ANY GRADE LEVELS THAT OVERLAP, SCHOOLS SERVING ONLY STUDENTS IN PREKINDERGARTEN, OR ANY OTHER SCHOOLS WITH IRREGULAR OR OUTLYING PROPERTIES. C. FOR PURPOSES OF THIS SUBDIVISION: (1) "SCHOOL TYPE" FOR ANY SCHOOL SHALL MEAN ELEMENTARY, MIDDLE, HIGH, PRE-K ONLY, OR K-12, AS DEFINED BY THE COMMISSIONER, PROVIDED THAT FOR PURPOSES OF THIS SUBDIVISION, A "MIDDLE" SCHOOL SHALL INCLUDE ANY SCHOOL WITH THE GRADE ORGANIZATION OF EITHER A MIDDLE SCHOOL OR A JUNIOR HIGH SCHOOL, AND A "HIGH" SCHOOL SHALL INCLUDE ANY SCHOOL WITH THE GRADE ORGANIZATION OF EITHER A SENIOR HIGH SCHOOL OR A JUNIOR-SENIOR HIGH SCHOOL; (2) "UNDERFUNDED HIGH-NEED SCHOOL" SHALL MEAN A SCHOOL WITHIN A SCHOOL DISTRICT THAT HAS BEEN DEEMED BOTH A SIGNIFICANTLY HIGH-NEED SCHOOL AND A SIGNIFICANTLY LOW FUNDED SCHOOL; (3) "STUDENT NEED INDEX" FOR ANY SCHOOL SHALL MEAN THE QUOTIENT ARRIVED AT WHEN DIVIDING THE WEIGHTED STUDENT ENROLLMENT AS DEFINED HEREIN BY THE K-12 ENROLLMENT FOR THE BASE YEAR AS REPORTED ON THE STATEMENT REQUIRED PURSUANT TO THIS SECTION; (4) "AVERAGE STUDENT NEED INDEX BY SCHOOL TYPE" SHALL MEAN THE QUOTIENT ARRIVED AT WHEN DIVIDING THE SUM OF WEIGHTED STUDENT ENROLLMENT AS DEFINED HEREIN FOR ALL SCHOOLS WITHIN A SCHOOL DISTRICT OF THE SAME SCHOOL TYPE BY THE K-12 ENROLLMENT FOR THE BASE YEAR FOR ALL SCHOOLS IN A SCHOOL DISTRICT OF THE SAME SCHOOL TYPE AS REPORTED ON THE STATEMENT REQUIRED PURSUANT TO THIS SECTION; (5) "WEIGHTED STUDENT ENROLLMENT" FOR ANY SCHOOL SHALL MEAN THE SUM OF: (A) K-12 ENROLLMENT PLUS (B) THE PRODUCT OF THE NUMBER OF STUDENTS ELIGIBLE TO RECEIVE FREE AND REDUCED PRICE LUNCH MULTIPLIED BY SIXTY- FIVE ONE-HUNDREDTHS (0.65) PLUS (C) THE PRODUCT OF THE NUMBER OF ENGLISH LANGUAGE LEARNERS MULTIPLIED BY ONE-HALF (0.5), PLUS (D) THE PRODUCT OF THE NUMBER OF STUDENTS WITH DISABILITIES MULTIPLIED BY ONE AND FORTY-ONE ONE-HUNDREDTHS (1.41), FOR THE BASE YEAR AS REPORTED ON THE STATEMENT REQUIRED PURSUANT TO THIS SECTION; (6) "SIGNIFICANTLY HIGH-NEED SCHOOL" SHALL MEAN A SCHOOL WITH A STUDENT NEED INDEX GREATER THAN THE PRODUCT OF THE AVERAGE STUDENT NEED INDEX BY SCHOOL TYPE WITHIN THE SCHOOL DISTRICT MULTIPLIED BY ONE AND FIVE ONE-HUNDREDTHS (1.05); (7) "PER PUPIL EXPENDITURES" FOR ANY SCHOOL SHALL MEAN THE QUOTIENT ARRIVED AT WHEN DIVIDING THE EXPENDITURE AMOUNT AS REPORTED FOR THE BASE YEAR IN THE STATEMENT REQUIRED PURSUANT TO THIS SECTION, EXCLUDING EXPENDITURES FOR PREKINDERGARTEN AND PRESCHOOL SPECIAL EDUCATION PROGRAMS AND CENTRAL DISTRICT COSTS BY THE WEIGHTED STUDENT ENROLLMENT OF THE SCHOOL; (8) "AVERAGE PER PUPIL EXPENDITURES BY SCHOOL TYPE" SHALL MEAN THE QUOTIENT ARRIVED AT WHEN DIVIDING (A) THE SUM OF THE EXPENDITURE AMOUNTS REPORTED FOR THE BASE YEAR IN THE STATEMENT REQUIRED PURSUANT TO THIS SECTION, EXCLUDING EXPENDITURES FOR PREKINDERGARTEN AND PRESCHOOL SPECIAL EDUCATION PROGRAMS AND CENTRAL DISTRICT COSTS, FOR ALL SCHOOLS S. 1509--C 203 A. 2009--C WITHIN A SCHOOL DISTRICT OF THE SAME SCHOOL TYPE BY (B) THE WEIGHTED STUDENT ENROLLMENT FOR THE BASE YEAR FOR ALL SCHOOLS IN A SCHOOL DISTRICT OF THE SAME SCHOOL TYPE AS REPORTED ON THE STATEMENT REQUIRED PURSUANT TO THIS SECTION; (9) "SIGNIFICANTLY LOW FUNDED SCHOOL" SHALL MEAN A SCHOOL WITHIN A SCHOOL DISTRICT THAT HAS PER PUPIL EXPENDITURES LESS THAN THE PRODUCT OF THE AVERAGE PER PUPIL EXPENDITURES BY SCHOOL TYPE WITHIN THE SCHOOL DISTRICT MULTIPLIED BY NINETY-FIVE ONE-HUNDREDTHS (0.95). (10) "BASE YEAR" SHALL MEAN THE BASE YEAR AS DEFINED IN PARAGRAPH B OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART. (11) "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. § 3. Paragraph bb of subdivision 1 of section 3602 of the education law, as added by section 25 of part A of chapter 58 of the laws of 2011, is amended to read as follows: bb. "Personal income growth index" shall mean (1) for the two thousand twelve--two thousand thirteen school year, the average of the quotients for each year in the period commencing with the two thousand five--two thousand six state fiscal year and finishing with the two thousand nine- -two thousand ten state fiscal year of the total personal income of the state for each such year divided by the total personal income of the state for the immediately preceding state fiscal year, but not less than one [and], (2) for the two thousand thirteen--two thousand fourteen [school year and each school year thereafter] THROUGH TWO THOUSAND NINE- TEEN--TWO THOUSAND TWENTY SCHOOL YEARS, the quotient of the total personal income of the state for the state fiscal year one year prior to the state fiscal year in which the base year commenced divided by the total personal income of the state for the immediately preceding state fiscal year, but not less than one AND (3) FOR THE TWO THOUSAND TWENTY- -TWO THOUSAND TWENTY-ONE SCHOOL YEAR AND EACH SCHOOL YEAR THEREAFTER, THE AVERAGE OF THE QUOTIENTS FOR EACH YEAR IN THE PERIOD COMMENCING WITH THE STATE FISCAL YEAR NINE YEARS PRIOR TO THE STATE FISCAL YEAR IN WHICH THE BASE YEAR BEGAN AND FINISHING WITH THE STATE FISCAL YEAR PRIOR TO THE STATE FISCAL YEAR IN WHICH THE BASE YEAR BEGAN OF THE TOTAL PERSONAL INCOME OF THE STATE FOR EACH SUCH YEAR DIVIDED BY THE TOTAL PERSONAL INCOME OF THE STATE FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR, BUT NOT LESS THAN ONE. § 4. Paragraph e of subdivision 4 of section 3602 of the education law, as amended by section 9-b of part CCC of chapter 59 of the laws of 2018, is amended to read as follows: 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", (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 seven- teen--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 commissioner in support of the executive budget for the two thousand eighteen--two thou- sand nineteen school year and entitled "BT181-9", AND (IV) THE AMOUNT, IF ANY, SET FORTH FOR SUCH DISTRICT AS "19-20 COMMUNITY SCHOOLS INCR" IN S. 1509--C 204 A. 2009--C THE DATA FILE PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE EXECUTIVE BUDGET FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR AND ENTITLED "BT192-0". Each school district shall use such "COMMUNITY SCHL AID (BT1617)" amount to support the transformation of school build- ings into community hubs to deliver co-located or school-linked academ- ic, 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-lo- cated 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 coordina- tor 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 transforma- tion at schools with extraordinary high levels of student need as iden- tified 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 commu- nity 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. EACH SCHOOL DISTRICT SHALL USE SUCH "19-20 COMMU- NITY SCHOOLS INCR" 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, TRAUMA INFORMED SUPPORT, 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. § 5. Subdivision 1 of section 3602 of the education law is amended by adding a new paragraph ii to read as follows: II. (1) "DIRECT CERTIFICATION COUNT" SHALL BE EQUAL TO THE NUMBER OF CHILDREN ELIGIBLE FOR FREE MEALS OR FREE MILK BASED ON INFORMATION OBTAINED DIRECTLY FROM THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE ADMINISTERING THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM AND THE DEPARTMENT OF HEALTH ADMINISTERING MEDICAID AND PROVIDING DATA AS PER THE UNITED STATES DEPARTMENT OF AGRICULTURE MEDICAID DEMONSTRATION PROJECT. (2) "DIRECT CERTIFICATION ENROLLMENT" SHALL MEAN ENROLLMENT COLLECTED FOR PURPOSES OF THE DIRECT CERTIFICATION MATCHING PROCESS. (3) "DIRECT CERTIFICATION PERCENT" SHALL MEAN THE QUOTIENT ARRIVED AT WHEN DIVIDING THE DIRECT CERTIFICATION COUNT BY THE DIRECT CERTIFICATION ENROLLMENT. (4) "THREE-YEAR DIRECT CERTIFICATION PERCENTAGE" SHALL MEAN THE QUOTIENT OF: (A) THE SUM OF THE DIRECT CERTIFICATION COUNT FOR THE BASE S. 1509--C 205 A. 2009--C YEAR, PLUS SUCH DIRECT CERTIFICATION COUNT COMPUTED FOR THE YEAR PRIOR TO THE BASE YEAR, PLUS SUCH DIRECT CERTIFICATION COUNT COMPUTED FOR THE YEAR TWO YEARS PRIOR TO THE BASE YEAR, DIVIDED BY (B) THE DIRECT CERTIF- ICATION ENROLLMENT FOR THE BASE YEAR, PLUS SUCH DIRECT CERTIFICATION ENROLLMENT COMPUTED FOR THE YEAR PRIOR TO THE BASE YEAR, PLUS SUCH DIRECT CERTIFICATION ENROLLMENT COMPUTED FOR THE YEAR TWO YEARS PRIOR TO THE BASE YEAR. § 5-a. Subdivision 1 of section 3602 of the education law is amended by adding a new paragraph jj to read as follows: JJ. "SMALL CITY SCHOOL DISTRICTS" SHALL MEAN ANY 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". § 5-b. Subdivision 4 of section 3602 of the education law is amended by adding a new paragraph g to read as follows: G. FOUNDATION AID PAYABLE IN THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRA- RY, FOUNDATION AID PAYABLE IN THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR SHALL EQUAL THE SUM OF (1) THE TOTAL FOUNDATION AID BASE PLUS (2) THE EXECUTIVE FOUNDATION AID INCREASE PLUS (3) THE POSI- TIVE DIFFERENCE, IF ANY, OF THE TOTAL FOUNDATION AID BASE AS SET FORTH ON THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY EXECUTIVE BUDGET AND ENTITLED "BT192-0" LESS THE TOTAL FOUNDATION AID BASE, PLUS (4) THE GREATER OF TIERS A THROUGH J. FOR THE PURPOSES OF THIS PARAGRAPH, "FOUNDATION AID REMAINING" SHALL MEAN THE POSITIVE DIFFERENCE, IF ANY, OF (1) TOTAL FOUNDATION AID COMPUTED PURSUANT TO THIS SECTION 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) "TIER A" SHALL EQUAL THE GREATER OF (A) THE DIFFERENCE OF THE PRODUCT OF THE TOTAL FOUNDATION AID BASE MULTIPLIED BY SEVENTY-FIVE TEN-THOUSANDTHS (0.0075) LESS THE EXECUTIVE FOUNDATION AID INCREASE OR (B) THE PRODUCT OF THE EXECUTIVE FOUNDATION AID INCREASE MULTIPLIED BY FIVE ONE-HUNDREDTHS (0.05). (II) "TIER B" SHALL EQUAL THE PRODUCT OF FOUNDATION AID REMAINING MULTIPLIED BY THE TIER B PERCENT. FOR PURPOSES OF THIS SUBPARAGRAPH, "TIER B PERCENT" SHALL MEAN (A) FOR A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, NINE THOUSAND ELEVEN HUNDRED- THOUSANDTHS (0.09011); (B) 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, ONE-TENTH (0.1); (C) 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 DECENNIAL CENSUS, SIX ONE-HUNDREDTHS (0.06); (D) 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 DECENNIAL CENSUS, ONE THOUSAND THREE-HUNDRED FIVE TEN-THOUSANDTHS (0.1305); (E) 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 DECENNIAL CENSUS, EIGHT ONE-HUN- DREDTHS (0.08); AND (6) FOR ALL OTHER SCHOOL DISTRICTS, ONE HUNDRED THIRTY-SEVEN TEN-THOUSANDTHS (0.0137). S. 1509--C 206 A. 2009--C (III) "TIER C" SHALL EQUAL, FOR ALL SCHOOL DISTRICTS WHERE (A) THE QUOTIENT ARRIVED AT WHEN DIVIDING THE TOTAL FOUNDATION AID BASE BY TOTAL FOUNDATION AID IS LESS THAN FIVE-TENTHS (0.5), AND (B) THE PUPIL WEALTH RATIO FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH A OF SUBDIVISION THREE OF THIS SECTION IS LESS THAN ONE AND ONE-TENTH (1.1) OR THE DIFFERENCE OF THE COMBINED WEALTH RATIO FOR THE BASE YEAR LESS THE COMBINED WEALTH RATIO FOR THE CURRENT YEAR IS GREATER THAN TWENTY- FIVE ONE-THOUSANDTHS (0.025), THE DIFFERENCE OF THE PRODUCT OF TOTAL FOUNDATION AID MULTIPLIED BY FIVE-TENTHS (0.5) LESS THE TOTAL FOUNDATION AID BASE. (IV) "TIER D" SHALL EQUAL, FOR SCHOOL DISTRICTS WHERE (A) THE QUOTIENT ARRIVED AT WHEN DIVIDING THE PUBLIC SCHOOL DISTRICT ENROLLMENT AS COMPUTED PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION FOR THE BASE YEAR BY SUCH ENROLLMENT FOR THE TWO THOUSAND EIGHT--TWO THOU- SAND NINE SCHOOL YEAR IS GREATER THAN ONE AND ONE-TENTH (1.1), (B) THE QUOTIENT ARRIVED AT WHEN DIVIDING THE ENGLISH LANGUAGE LEARNER COUNT COMPUTED PURSUANT TO PARAGRAPH O OF SUBDIVISION ONE OF THIS SECTION FOR THE BASE YEAR BY SUCH COUNT FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN SCHOOL YEAR IS GREATER THAN ONE AND ONE-TENTH (1.1), (C) THE QUOTIENT ARRIVED AT WHEN DIVIDING THE DIFFERENCE OF THE COMBINED WEALTH RATIO COMPUTED PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH C OF SUBDIVI- SION THREE OF THIS SECTION FOR THE TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN SCHOOL YEAR LESS SUCH COMBINED WEALTH RATIO FOR THE CURRENT YEAR DIVIDED BY SUCH COMBINED WEALTH RATIO FOR THE TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN SCHOOL YEAR IS GREATER THAN ONE-TENTH (0.1), AND (D) THE PUPIL WEALTH RATIO FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH A OF SUBDIVISION THREE OF THIS SECTION IS LESS THAN ONE AND FOUR-TENTHS (1.4), THE PRODUCT OF FOUNDATION AID REMAINING MULTIPLIED BY TWENTY-FIVE ONE-THOUSANDTHS (0.025). (V) "TIER E" SHALL EQUAL, FOR SCHOOL DISTRICTS WHERE (A) THE QUOTIENT ARRIVED AT WHEN DIVIDING THE PUBLIC SCHOOL DISTRICT ENROLLMENT AS COMPUTED PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION FOR THE BASE YEAR BY SUCH ENROLLMENT FOR THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR IS LESS THAN ONE, (B) THE THREE-YEAR DIRECT CERTIFICATION PERCENTAGE AS DEFINED IN PARAGRAPH II OF SUBDIVI- SION ONE OF THIS SECTION IS GREATER THAN THIRTY-SIX ONE-HUNDREDTHS (0.36), AND (C) THE QUOTIENT ARRIVED AT WHEN DIVIDING THE ENGLISH LANGUAGE LEARNER COUNT COMPUTED PURSUANT TO PARAGRAPH O OF SUBDIVISION ONE OF THIS SECTION FOR THE BASE YEAR BY SUCH COUNT FOR THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR IS GREATER THAN ONE AND THIRTY-FOUR ONE-HUNDREDTHS (1.34) OR THE DIFFERENCE OF SUCH BASE YEAR PUPILS LESS SUCH PUPILS FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR IS GREATER THAN ONE HUNDRED, THE PRODUCT OF FOUNDA- TION AID REMAINING MULTIPLIED BY TWO HUNDRED FIVE TEN-THOUSANDTHS (0.0205). (VI) "TIER F" SHALL EQUAL, FOR SCHOOL DISTRICTS WHERE (A) THE QUOTIENT ARRIVED AT WHEN DIVIDING THE TOTAL FOUNDATION AID BASE BY TOTAL FOUNDA- TION AID IS LESS THAN SEVENTY-FIVE ONE-HUNDREDTHS (0.75), (B) THE THREE- YEAR DIRECT CERTIFICATION PERCENTAGE AS DEFINED IN PARAGRAPH II OF SUBDIVISION ONE OF THIS SECTION IS GREATER THAN FORTY-FOUR ONE-HUN- DREDTHS (0.44), AND (C) THE THREE-YEAR AVERAGE FREE AND REDUCED PRICE LUNCH PERCENT FOR THE CURRENT YEAR COMPUTED PURSUANT TO PARAGRAPH P OF SUBDIVISION ONE OF THIS SECTION IS GREATER THAN FIFTY-FIVE ONE-HUN- DREDTHS (0.55), THE POSITIVE DIFFERENCE, IF ANY, OF THE PRODUCT OF TOTAL FOUNDATION AID BASE MULTIPLIED BY TWO HUNDRED THIRTY-EIGHT TEN-THOUS- ANDTHS (0.0238) LESS THE EXECUTIVE FOUNDATION AID INCREASE. S. 1509--C 207 A. 2009--C (VII) "TIER G" SHALL EQUAL, FOR SCHOOL DISTRICTS WHERE (A) THE PUPIL WEALTH RATIO FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH A OF SUBDIVISION THREE OF THIS SECTION IS LESS THAN SEVEN-TENTHS (0.7), AND (B) THE QUOTIENT ARRIVED AT WHEN DIVIDING THE PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE BASE YEAR BY SUCH ENROLLMENT FOR THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR IS GREATER THAN OR EQUAL TO ONE AND ONE ONE-HUNDREDTH (1.01), THE PRODUCT OF FOUNDATION AID REMAIN- ING MULTIPLIED BY TWO HUNDRED SEVENTY-SEVEN TEN-THOUSANDTHS (0.0277). (VIII) "TIER H" SHALL EQUAL, FOR SMALL CITY SCHOOL DISTRICTS DEFINED PURSUANT TO PARAGRAPH JJ OF SUBDIVISION ONE OF THIS SECTION, THE PRODUCT OF THE FOUNDATION AID REMAINING MULTIPLIED BY ONE THOUSAND ONE HUNDRED TWENTY-FOUR TEN-THOUSANDTHS (0.1124). (IX) "TIER I" SHALL EQUAL, FOR SMALL CITY SCHOOL DISTRICTS DEFINED PURSUANT TO PARAGRAPH JJ OF SUBDIVISION ONE OF THIS SECTION, THE PRODUCT OF THE TOTAL FOUNDATION AID BASE MULTIPLIED BY TWO ONE-HUNDREDTHS (0.02). (X) "TIER J" SHALL EQUAL, FOR SCHOOL DISTRICTS WITH (A) A SPARSITY FACTOR COMPUTED PURSUANT TO PARAGRAPH R OF SUBDIVISION ONE OF THIS SECTION GREATER THAN ZERO, AND (B) A COMBINED WEALTH RATIO FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION THREE OF THIS SECTION LESS THAN OR EQUAL TO ONE AND FIVE-TENTHS (1.5), THE GREAT- ER OF (A) THE PRODUCT OF FOUNDATION AID REMAINING MULTIPLIED BY FORTY- EIGHT ONE-THOUSANDTHS (0.048) OR (B) THE PRODUCT OF THE TOTAL FOUNDATION AID BASE MULTIPLIED BY SEVENTY-FIVE TEN-THOUSANDTHS (0.0075). (XI) 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 "2019-20 ESTIMATED AIDS" IN THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE EXECUTIVE BUDGET REQUEST FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR AND ENTITLED "BT192-0" LESS (B) THE AMOUNTS SET FORTH FOR EACH SCHOOL DISTRICT AS "FOUNDATION AID" UNDER THE HEADING "2018-19 BASE YEAR AIDS" IN SUCH COMPUTER LISTING. § 5-c. Clause (ii) of subparagraph 2 of paragraph b of subdivision 4 of section 3602 of the education law, as amended by section 9-b of part CCC of chapter 59 of the laws of 2018, is amended to read as follows: (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 (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 S. 1509--C 208 A. 2009--C (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 (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 S. 1509--C 209 A. 2009--C 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 [nineteen] TWENTY--two thousand [twenty] TWENTY-ONE 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. § 5-d. Subdivision 4 of section 3627 of the education law, as amended by section 42-b of part CCC of chapter 59 of the laws of 2018, 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] THROUGH TWO S. 1509--C 210 A. 2009--C THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR such aid shall be limited to the sum of eighteen million eight hundred [and] fifty thou- sand dollars plus the base amount, AND FOR THE TWO THOUSAND NINETEEN-- TWO THOUSAND TWENTY SCHOOL YEAR AND THEREAFTER SUCH AID SHALL BE LIMITED TO THE SUM OF NINETEEN MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS PLUS THE BASE AMOUNT. For purposes of this subdivision, "base amount" means the amount of transportation aid paid to the school district for expend- itures incurred in the two thousand 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 subdivi- sion one of this section at least the expenditures used for the base amount. § 6. Paragraph d of subdivision 4 of section 3602 of the education law, as amended by section 9-b of part CCC of chapter 59 of the laws of 2018, is amended to read as follows: d. For the two thousand fourteen--two thousand fifteen through two thousand [eighteen] TWENTY-THREE--two thousand [nineteen] TWENTY-FOUR 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. § 7. Intentionally omitted. § 8. Intentionally omitted. § 9. Intentionally omitted. § 10. Intentionally omitted. § 10-a. Subdivisions 10 and 11 of section 3602-e of the education law, subdivision 10 as amended by section 26 of part YYY of chapter 59 of the laws of 2017, the opening paragraph of subdivision 10 as amended by section 15, subparagraphs (ii) and (iii) of paragraph b of subdivision 10 as amended by section 16 and the closing paragraph of paragraph b of subdivision 10 as amended by section 17 of part CCC of chapter 59 of the laws of 2018 and subdivision 11 as amended by section 18 of part CCC of chapter 59 of the laws of 2018, are amended to read as follows: 10. Universal prekindergarten aid. Notwithstanding any provision of law to the contrary, (i) for aid payable in the two thousand eight--two thousand nine school year, the grant to each eligible school district for universal prekindergarten aid shall be computed pursuant to this subdivision, and (ii) for the two thousand nine--two thousand ten and two thousand ten--two thousand eleven school years, each school district shall be eligible for a maximum grant equal to the amount computed for such school district for the base year in the electronic data file produced by the commissioner in support of the two thousand nine--two thousand ten education, labor and family assistance budget, provided, however, that in the case of a district implementing programs for the first time or implementing expansion programs in the two thousand eight--two thou- sand nine school year where such programs operate for a minimum of nine- ty days in any one school year as provided in section 151-1.4 of the regulations of the commissioner, for the two thousand nine--two thousand ten and two thousand ten--two thousand eleven school years, such school district shall be eligible for a maximum grant equal to the amount computed pursuant to paragraph a of subdivision nine of this section in the two thousand eight--two thousand nine school year, and S. 1509--C 211 A. 2009--C (iii) for the two thousand eleven--two thousand twelve school year each school district shall be eligible for a maximum grant equal to the amount set forth for such school district as "UNIVERSAL PREKINDERGARTEN" under the heading "2011-12 ESTIMATED AIDS" in the school aid computer listing produced by the commissioner in support of the enacted budget for the 2011-12 school year and entitled "SA111-2", and (iv) for two thousand twelve--two thousand thirteen through two thou- sand 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 commissioner 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 subdivision 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 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, PROVIDED THAT FOR PURPOSES OF CALCULATING THE MAINTENANCE OF EFFORT REDUCTION IN SUBDIVI- SION ELEVEN OF THIS SECTION GRANT AMOUNTS SHALL BE THE FOUR-YEAR-OLD GRANT AMOUNT, and (vi) for the two thousand nineteen--two thousand twenty school year, each school district shall be eligible to receive a grant amount equal to the sum of (A) the amount set forth for such school district as "UNIVERSAL PREKINDERGARTEN" in the school aid computer listing produced by the commissioner in support of the enacted budget for the two thou- sand eighteen--two thousand 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) plus (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 (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 (E) the amount awarded to such school district for the expanded prekindergarten program for three- S. 1509--C 212 A. 2009--C and four-year-olds for the two thousand eighteen--two thousand nineteen school year pursuant to a chapter of the laws of two thousand seventeen plus (F) the amount awarded to such school district, subject to an available appropriation, through the pre-kindergarten expansion grant for the two thousand eighteen--two thousand nineteen school year, provided that such school district has met all requirements pursuant to this section AND FOR PURPOSES OF CALCULATING THE MAINTENANCE OF EFFORT REDUCTION IN SUBDIVISION ELEVEN OF THIS SECTION THAT SUCH GRANT AMOUNTS SHALL BE DIVIDED INTO A FOUR-YEAR-OLD GRANT AMOUNT BASED ON THE AMOUNT EACH DISTRICT WAS ELIGIBLE TO RECEIVE IN THE BASE YEAR TO SERVE FOUR- YEAR-OLD PREKINDERGARTEN PUPILS AND A THREE-YEAR-OLD GRANT AMOUNT BASED ON THE AMOUNT EACH DISTRICT WAS ELIGIBLE TO RECEIVE IN THE BASE YEAR TO SERVE THREE-YEAR-OLD PUPILS, and (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 comput- er 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 FOR PURPOSES OF CALCULATING THE MAINTENANCE OF EFFORT REDUCTION IN SUBDIVISION ELEVEN OF THIS SECTION THAT SUCH GRANT AMOUNTS SHALL BE DIVIDED INTO A FOUR-YEAR- OLD GRANT AMOUNT BASED ON THE AMOUNT EACH DISTRICT WAS ELIGIBLE TO RECEIVE IN THE BASE YEAR TO SERVE FOUR-YEAR-OLD PREKINDERGARTEN PUPILS AND A THREE-YEAR-OLD GRANT AMOUNT BASED ON THE AMOUNT EACH DISTRICT WAS ELIGIBLE TO RECEIVE IN THE BASE YEAR TO SERVE THREE-YEAR-OLD PUPILS, and provided further that the maximum grant shall not exceed the total actu- al grant expenditures incurred by the school district in the current school year as approved by the commissioner. a. Each school district shall be eligible to serve the sum of (i) ELIGIBLE full-day FOUR-YEAR-OLD prekindergarten pupils plus (ii) ELIGI- BLE half-day FOUR-YEAR-OLD prekindergarten pupils PLUS (III) ELIGIBLE FULL-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS PLUS (IV) ELIGIBLE HALF- DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS. b. For purposes of paragraph a of this subdivision: (i) "Selected aid per prekindergarten pupil" shall equal the greater of (A) the product of five-tenths and the school district's selected foundation aid for the current year, or (B) the aid per prekindergarten pupil calculated pursuant to this subdivision for the two thousand six- two thousand seven school year, based on data on file for the school aid computer listing produced by the commissioner in support of the enacted budget for the two thousand six--two thousand seven school year and entitled "SA060-7"; provided, however, that in the two thousand eight-- two thousand nine school year, a city school district in a city having a population of one million inhabitants or more shall not be eligible to select aid per prekindergarten pupil pursuant to clause (A) of this subparagraph; (ii) (1) "ELIGIBLE Full-day FOUR-YEAR-OLD 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; S. 1509--C 213 A. 2009--C For the two thousand eighteen--two thousand nineteen school year the sum of, from the programs pursuant to this section, (A) the maximum aidable full-day prekindergarten 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] PUPILS 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, (D) [the expanded prekindergarten for three-year- olds, (E)] the expanded prekindergarten program for three- and four- year-olds, and [(F)] (E) the prekindergarten expansion grant, (1) the maximum aidable full-day FOUR-YEAR-OLD prekindergarten pupils such district was eligible to serve in the base year, plus (2) the maximum aidable number of half-day FOUR-YEAR-OLD prekindergarten pupils converted into [a] full-day prekindergarten [pupil] PUPILS 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 FOUR-YEAR-OLD prekindergarten pupils such district was eligible to serve in the base year, plus (2) the maximum aidable number of half-day FOUR-YEAR-OLD prekindergarten pupils converted into [a] full-day prekindergarten [pupil] PUPILS in the base year; (2) "ELIGIBLE FULL-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS" SHALL EQUAL: FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR, THE SUM OF, FROM EACH OF (A) THE EXPANDED PREKINDERGARTEN PROGRAM, (B) THE EXPANDED PREKINDERGARTEN PROGRAM FOR THREE-YEAR-OLDS, (C) THE EXPANDED PREKINDERGARTEN PROGRAM FOR THREE- AND FOUR-YEAR-OLDS, AND (D) THE PREK- INDERGARTEN EXPANSION GRANT, (1) THE MAXIMUM AIDABLE FULL-DAY THREE- YEAR-OLD PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGIBLE TO SERVE IN THE BASE YEAR, PLUS (2) THE MAXIMUM AIDABLE NUMBER OF HALF-DAY THREE- YEAR-OLD PREKINDERGARTEN PUPILS CONVERTED INTO FULL-DAY PREKINDERGARTEN PUPILS 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 PREKINDERGARTEN EXPANSION GRANT, (1) THE MAXIMUM AIDABLE FULL-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGIBLE TO SERVE IN THE BASE YEAR, PLUS (2) THE MAXIMUM AIDABLE NUMBER OF HALF-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS CONVERTED INTO FULL- DAY PREKINDERGARTEN PUPILS IN THE BASE YEAR; (iii) ["Half-day] (1) "ELIGIBLE HALF-DAY FOUR-YEAR-OLD 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] PUPILS 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 the program pursuant to this section; S. 1509--C 214 A. 2009--C For the two thousand nineteen--two thousand twenty school year, the sum of the maximum aidable half-day FOUR-YEAR-OLD 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 prekin- dergarten for three-year-olds plus such pupils from (D)] the expanded prekindergarten program for three- and four-year-olds plus such pupils from [(E)] (D) the prekindergarten expansion grant, less the sum of the maximum aidable number of half-day FOUR-YEAR-OLD prekindergarten pupils converted into [a] full-day FOUR-YEAR-OLD prekindergarten [pupil] PUPILS under each of (1) the federal preschool expansion grant for the base year plus such pupils from (2) the expanded prekindergarten program plus such pupils from (3) [the expanded prekindergarten for three-year-olds plus such pupils from (4)] the expanded prekindergarten program for three- and four-year-olds plus such pupils from [(5)] (4) the prekinder- garten 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 FOUR-YEAR-OLD prek- indergarten 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 FOUR-YEAR-OLD prekindergarten pupils converted into [a] full- day FOUR-YEAR-OLD prekindergarten [pupil] PUPILS under the prekindergar- ten expansion grant for the base year; (2) "ELIGIBLE HALF-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS" SHALL EQUAL: FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR, THE SUM OF THE MAXIMUM AIDABLE HALF-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGIBLE TO SERVE FOR THE BASE YEAR FROM (A) THE EXPANDED PREKINDERGARTEN PROGRAM PLUS SUCH PUPILS FROM (B) THE EXPANDED PREKINDERGARTEN FOR THREE-YEAR-OLDS PLUS SUCH PUPILS FROM (C) THE EXPANDED PREKINDERGARTEN PROGRAM FOR THREE- AND FOUR-YEAR-OLDS PLUS SUCH PUPILS FROM (D) THE PREKINDERGARTEN EXPANSION GRANT, LESS THE SUM OF THE MAXIMUM AIDABLE NUMBER OF HALF-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS CONVERTED INTO FULL-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS UNDER EACH OF (1) THE EXPANDED PREKINDERGARTEN PROGRAM PLUS SUCH PUPILS FROM (2) THE EXPANDED PREKINDERGARTEN FOR THREE-YEAR-OLDS PLUS SUCH PUPILS FROM (3) THE EXPANDED PREKINDERGARTEN PROGRAM FOR THREE- AND FOUR-YEAR-OLDS PLUS SUCH PUPILS FROM (4) THE PREKINDERGARTEN EXPANSION GRANT FOR THE BASE YEAR; FOR THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL YEAR AND THEREAFTER, THE SUM OF THE MAXIMUM AIDABLE HALF-DAY THREE-YEAR-OLD PREK- INDERGARTEN 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 PREKINDERGARTEN EXPANSION GRANT, LESS THE MAXIMUM AIDABLE NUMBER OF HALF-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS CONVERTED INTO FULL-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS UNDER THE PREKINDERGARTEN EXPAN- SION GRANT FOR THE BASE YEAR; (iv) "Unserved FOUR-YEAR-OLD prekindergarten pupils" shall mean the product of eighty-five percent multiplied by the positive difference, if any, between the sum of the public school enrollment and the nonpublic school enrollment of children attending full day and half day kindergar- ten programs in the district in the year prior to the base year less the number of resident children who attain the age of four before December first of the base year, who were served during such school year by a prekindergarten program approved pursuant to section forty-four hundred S. 1509--C 215 A. 2009--C ten of this chapter, where such services are provided for more than four hours per day; (v) (1) "Prekindergarten FOUR-YEAR-OLD maintenance of effort base" shall mean the number of eligible [total] full-day FOUR-YEAR-OLD prekin- dergarten pupils set forth for the district in this paragraph plus the product of one half (0.5) multiplied by the number of eligible [total] half-day FOUR-YEAR-OLD prekindergarten pupils set forth for the district in this paragraph; (2) "PREKINDERGARTEN THREE-YEAR-OLD MAINTENANCE OF EFFORT BASE" SHALL MEAN THE NUMBER OF ELIGIBLE FULL-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS SET FORTH FOR THE DISTRICT IN THIS PARAGRAPH PLUS THE PRODUCT OF ONE HALF (0.5) MULTIPLIED BY THE NUMBER OF ELIGIBLE HALF-DAY THREE-YEAR- OLD PREKINDERGARTEN PUPILS SET FORTH FOR THE DISTRICT IN THIS PARAGRAPH; (vi) (1) "Current year FOUR-YEAR-OLD prekindergarten pupils served" shall mean the sum of full day FOUR-YEAR-OLD prekindergarten pupils served in the current year plus the product of one half (0.5) multiplied by the half day FOUR-YEAR-OLD prekindergarten pupils in the current year less the half-day FOUR-YEAR-OLD conversion overage; (2) "CURRENT YEAR THREE-YEAR-OLD PREKINDERGARTEN PUPILS SERVED" SHALL MEAN THE SUM OF FULL DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR PLUS THE PRODUCT OF ONE HALF (0.5) MULTIPLIED BY THE HALF DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS IN THE CURRENT YEAR LESS THE HALF-DAY THREE-YEAR-OLD CONVERSION OVERAGE; (vii) (1) "Half-day FOUR-YEAR-OLD conversion overage" shall equal, for districts [that serve greater than] WITH thirty percent fewer FULL-DAY FOUR-YEAR-OLD PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR THAN ELIGIBLE full-day FOUR-YEAR-OLD prekindergarten pupils [during the current year than the number of total eligible full-day prekindergarten pupils] AS set forth [for the district] in THIS paragraph [b of subdivi- sion ten of this section] due to the conversion of full-day FOUR-YEAR- OLD PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR to half-day [slots] FOUR YEAR-OLD PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR, the difference of the product of seven-tenths multiplied by the [total] eligible full-day FOUR-YEAR-OLD prekindergarten pupils rounded down to the nearest whole number, less the number of full-day FOUR-YEAR-OLD prekindergarten pupils [actually] served[.] IN THE CURRENT YEAR; (2) "HALF-DAY THREE-YEAR-OLD CONVERSION OVERAGE" SHALL EQUAL, FOR DISTRICTS WITH THIRTY PERCENT FEWER FULL-DAY THREE-YEAR-OLD PREKINDER- GARTEN PUPILS SERVED IN THE CURRENT YEAR THAN ELIGIBLE FULL-DAY THREE- YEAR-OLD PREKINDERGARTEN PUPILS AS SET FORTH IN PARAGRAPH B OF THIS SUBDIVISION DUE TO THE CONVERSION OF FULL-DAY THREE-YEAR-OLD PREKINDER- GARTEN PUPILS SERVED IN THE CURRENT YEAR TO HALF-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR, THE DIFFERENCE OF THE PRODUCT OF SEVEN-TENTHS MULTIPLIED BY THE ELIGIBLE FULL-DAY THREE-YEAR- OLD PREKINDERGARTEN PUPILS ROUNDED DOWN TO THE NEAREST WHOLE NUMBER, LESS THE NUMBER OF FULL-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR; (3) Provided that a district may apply to the commissioner for a hard- ship waiver that would allow a district to convert more than thirty percent of full-day FOUR-YEAR-OLD prekindergarten [slots] PUPILS SERVED IN THE CURRENT YEAR to half-day [slots] FOUR-YEAR-OLD PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR OR THREE-YEAR-OLD PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR TO HALF-DAY THREE-YEAR-OLD PREKINDER- GARTEN PUPILS SERVED IN THE CURRENT YEAR and receive funding for such slots. Such waiver shall be granted upon a demonstration by the school district that due to a significant change in the resources available to S. 1509--C 216 A. 2009--C the school district and absent [a] THIS HARDSHIP waiver [to allow the conversion of more than thirty percent of full-day prekindergarten slots to half-day slots], the school district would be unable to serve such pupils in prekindergarten programs, without causing significant disruption to other district programming; (viii) (1) "Maintenance of effort factor FOR FOUR-YEAR-OLDS" shall mean the quotient arrived at when dividing the current year FOUR-YEAR- OLD prekindergarten pupils served by the prekindergarten FOUR-YEAR-OLD maintenance of effort base[.]; (2) "MAINTENANCE OF EFFORT FACTOR FOR THREE-YEAR-OLDS" SHALL MEAN THE QUOTIENT ARRIVED AT WHEN DIVIDING THE CURRENT YEAR THREE-YEAR-OLD PREK- INDERGARTEN PUPILS SERVED BY THE PREKINDERGARTEN THREE-YEAR-OLD MAINTE- NANCE OF EFFORT BASE; (IX) For the purposes of this paragraph: (A) "Priority full-day prekindergarten program" shall mean the priori- ty full-day prekindergarten and expanded half-day prekindergarten grant program for high need students pursuant to chapter fifty-three of the laws of two thousand thirteen; (B) "Federal preschool development expansion grant" shall mean the federal preschool development expansion grant pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA), Sections 14005, 14006, and 14013, Title XIV, (Public Law 112-10), as amended by section 1832(b) of Division B of the Department of Defense and Full-Year Continuing Appro- priations Act, 2011 (Pub. L. 112-10), and the Department of Education Appropriations Act, 2012 (Title III Division F of Pub. L. 112-74, the Consolidated Appropriations Act, 2012); (C) "Expanded prekindergarten program" shall mean the expanded prekin- dergarten program for three- and [four year-olds] FOUR-YEAR-OLDS pursu- ant 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. c. Notwithstanding any other provision of this section, the total grant payable pursuant to this section shall equal the lesser of: (i) the [total grant amounts] SUM OF THE FOUR-YEAR-OLD GRANT AMOUNT PLUS THE THREE-YEAR-OLD GRANT AMOUNT computed pursuant to this subdivision for the current year, based on data on file with the commissioner as of September first of the school year immediately following or (ii) the total actual grant expenditures incurred by the school district as approved by the commissioner. d. Notwithstanding any other provision of this section, apportionments under this section greater than the amounts provided in the two thousand sixteen--two thousand seventeen school year shall only be used to supplement and not supplant current local expenditures of state or local funds on prekindergarten programs and the number of [slots] ELIGIBLE FULL-DAY FOUR-YEAR-OLD PREKINDERGARTEN PUPILS AND ELIGIBLE FULL-DAY S. 1509--C 217 A. 2009--C THREE-YEAR-OLD PREKINDERGARTEN PUPILS in such programs from such sourc- es. Current local expenditures shall include any local expenditures of state or local funds used to supplement or extend services provided directly or via contract to eligible children enrolled in a universal prekindergarten program pursuant to this section. 11. Maintenance of effort reduction. (A) Where a school district's current year FOUR-YEAR-OLD prekindergar- ten pupils served is less than its prekindergarten FOUR-YEAR-OLD mainte- nance of effort base, the school district shall have its current year FOUR-YEAR-OLD apportionment equal to the product of the FOUR-YEAR-OLD maintenance of effort factor computed in paragraph b of subdivision ten of this section multiplied by the FOUR-YEAR-OLD grant amount it was eligible to receive pursuant to subdivision ten of this section. (B) WHERE A SCHOOL DISTRICT'S CURRENT YEAR THREE-YEAR-OLD PREKINDER- GARTEN PUPILS SERVED IS LESS THAN ITS PREKINDERGARTEN THREE-YEAR-OLD MAINTENANCE OF EFFORT BASE, THE SCHOOL DISTRICT SHALL HAVE ITS CURRENT YEAR THREE-YEAR-OLD APPORTIONMENT EQUAL TO THE PRODUCT OF THE THREE- YEAR-OLD MAINTENANCE OF EFFORT FACTOR COMPUTED IN PARAGRAPH B OF SUBDI- VISION TEN OF THIS SECTION MULTIPLIED BY THE THREE-YEAR-OLD GRANT AMOUNT IT WAS ELIGIBLE TO RECEIVE PURSUANT TO SUBDIVISION TEN OF THIS SECTION. § 11. Intentionally omitted. § 12. Intentionally omitted. § 12-a. Subdivision 14 of section 305 of the education law is amended by adding a new paragraph g to read as follows: G. NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVISION, SECTION ONE HUNDRED THREE OF THE GENERAL MUNICIPAL LAW, OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE BOARD OF EDUCATION SHALL BE AUTHORIZED TO ENTER INTO A PIGGYBACK CONTRACT WITH ANOTHER SCHOOL DISTRICT THAT TRANSPORTS STUDENTS PURSUANT TO A CONTRACT WITH A PRIVATE TRANSPORTATION CONTRAC- TOR, PROVIDED THAT THE BOARD FINDS THAT THE CONTRACT COST IS APPROPRIATE AND ENTRY INTO A PIGGYBACK CONTRACT WILL RESULT IN A COST SAVINGS TO THE SCHOOL DISTRICT. FOR PURPOSES OF THIS PARAGRAPH, A "PIGGYBACK CONTRACT" MEANS A CONTRACT FOR THE TRANSPORTATION OF STUDENTS THAT: (1) PROVIDES TRANSPORTATION TO A LOCATION OUTSIDE THE STUDENTS' SCHOOL DISTRICT OF RESIDENCE TO WHICH ANOTHER SCHOOL DISTRICT IS ALREADY PROVIDING TRANS- PORTATION TO ITS OWN STUDENTS THROUGH AN EXISTING CONTRACT WITH A PRIVATE TRANSPORTATION CONTRACTOR, OTHER THAN A COOPERATIVELY BID CONTRACT; (2) IS ENTERED INTO BY THE PRIVATE TRANSPORTATION CONTRACTOR AND EACH SCHOOL DISTRICT INVOLVED; AND (3) PROVIDES FOR TRANSPORTATION IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF SUCH EXISTING TRANSPORTA- TION CONTRACT. § 13. Intentionally omitted. § 14. Intentionally omitted. § 14-a. Intentionally omitted. § 15. Intentionally omitted. § 16. The closing paragraph of subdivision 5-a of section 3602 of the education law, as amended by section 10 of part CCC of chapter 59 of the laws of 2018, 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 [eighteen] NINETEEN--two thousand [nineteen] TWENTY 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 S. 1509--C 218 A. 2009--C 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". § 17. Subdivision 12 of section 3602 of the education law, as amended by section 13 of part CCC of chapter 59 of the laws of 2018, 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 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. S. 1509--C 219 A. 2009--C 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. FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY 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 "2018-19 ESTIMATED AIDS" IN THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE BUDGET FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR AND ENTITLED "SA181-9", 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. § 18. The opening paragraph of subdivision 16 of section 3602 of the education law, as amended by section 14 of part CCC of chapter 59 of the laws of 2018, 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 [eighteen] NINETEEN--two thousand [nineteen] TWENTY 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". § 19. Subdivision 16 of section 3602-ee of the education law, as amended by section 19 of part CCC of chapter 59 of the laws of 2018, 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 S. 1509--C 220 A. 2009--C [nineteen] TWENTY; 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 21 of part CCC of chapter 59 of the laws of 2018, is amended to read as follows: For aid payable in the two thousand seven--two thousand eight school year through the two thousand [eighteen] NINETEEN--two thousand [nine- teen] TWENTY 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] FIVE of section ninety- seven-nnnn of the state finance law, less any grants provided pursuant to subdivision twelve of section thirty-six hundred forty-one of this article, or (ii) the apportionment calculated by the commissioner based on data on file at the time the payment is processed; provided however, that for the purposes of any payments made pursuant to this section prior to the first business day of June of the current year, moneys apportioned shall not include any aids payable pursuant to subdivisions six and fourteen, if applicable, of section thirty-six hundred two of this part as current year aid for debt service on bond anticipation notes and/or bonds first issued in the current year or any aids payable for full-day kindergarten for the current year pursuant to subdivision nine of section thirty-six hundred two of this part. The definitions of "base year" and "current year" as set forth in subdivision one of section thirty-six hundred two of this part shall apply to this section. For aid payable in the two thousand [eighteen] NINETEEN--two thousand [nineteen] TWENTY school year, reference to such "school aid computer listing for the current year" shall mean the printouts entitled ["SA181-9"] "SA192-0". § 22. Paragraph b of subdivision 2 of section 3612 of the education law, as amended by section 22 of part CCC of chapter 59 of the laws of 2018, 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 S. 1509--C 221 A. 2009--C 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 [eighteen] TWENTY-THREE--two thousand [nineteen] TWENTY-FOUR. § 23. Subdivision 6 of section 4402 of the education law, as amended by section 23 of part CCC of chapter 59 of the laws of 2018, 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 [nineteen of the two thou- sand eighteen--two thousand nineteen school year] TWENTY-FOUR, 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, 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 applicable regulation, provided that such authorization shall terminate on June thirtieth, two thousand. Such authorization shall be granted upon filing of a notice by such a board of education with the commissioner stating the board's intention to increase such class sizes and a certification that the board will conduct a study of attendance problems at the secondary level and will implement a corrective action plan to increase the rate of attendance of students in such classes to at least the rate for students attending regular education classes in secondary schools of the district. Such corrective action plan shall be submitted for approval by the commissioner by a date during the school year in which such board increases class sizes as provided pursuant to this subdivi- sion 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. § 24-a. Subparagraph (ii) of paragraph (c) of subdivision 8 of section 3602-ee of the education law, as amended by section 18-b of part CCC of chapter 59 of the laws of 2018, 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 S. 1509--C 222 A. 2009--C [and] THROUGH THE two thousand [eighteen-two thousand] nineteen--TWO THOUSAND TWENTY school years an exemption to the certification require- ment 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 regis- tered in the ASPIRE workforce registry as required under regulations of the commissioner of the office of children and family services. Notwith- standing any exemption provided by this subparagraph, certification shall be required for employment no later than June thirtieth, two thou- sand [nineteen] TWENTY; PROVIDED THAT FOR THE TWO THOUSAND NINETEEN-TWO THOUSAND TWENTY SCHOOL YEAR, SCHOOL DISTRICTS WITH TEACHERS SEEKING AN EXEMPTION TO THE CERTIFICATION REQUIREMENT OF SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL SUBMIT A REPORT TO THE COMMISSIONER REGARDING (A) THE BARRIERS TO CERTIFICATION, IF ANY, (B) THE NUMBER OF UNCERTIFIED TEACH- ERS REGISTERED IN THE ASPIRE WORKFORCE REGISTRY TEACHING PRE-KINDERGAR- TEN IN THE DISTRICT, INCLUDING THOSE EMPLOYED BY A COMMUNITY-BASED ORGANIZATION, (C) THE NUMBER OF PREVIOUSLY UNCERTIFIED TEACHERS WHO HAVE COMPLETED CERTIFICATION AS REQUIRED BY THIS SUBDIVISION, AND (D) THE EXPECTED CERTIFICATION COMPLETION DATE OF SUCH TEACHERS. § 25. Section 3012-d of the education law is amended by adding a new subdivision 16 to read as follows: 16. A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, THE GRADES THREE THROUGH EIGHT ENGLISH LANGUAGE ARTS AND MATHEMATICS STATE ASSESSMENTS AND ALL OTHER STATE-CREATED OR ADMIN- ISTERED TESTS SHALL NOT BE REQUIRED TO BE UTILIZED IN ANY MANNER TO DETERMINE A TEACHER OR PRINCIPAL EVALUATION REQUIRED BY THIS SECTION. B. THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS PROVIDING ALTERNATIVE ASSESSMENTS THAT MAY BE USED IN GRADES THREE THROUGH EIGHT INSTEAD OF ALL OTHER STATE-CREATED OR ADMINISTERED TESTS, WHICH SHALL INCLUDE ALL OF THE ASSESSMENTS THAT HAVE BEEN APPROVED BY THE COMMIS- SIONER FOR USE IN DETERMINING TRANSITION SCORES AND RATINGS. C. THE SELECTION AND USE OF AN ASSESSMENT IN A TEACHER OR PRINCIPAL'S EVALUATION PURSUANT TO PARAGRAPHS A AND B OF THIS SUBDIVISION AND SUBDI- VISION FOUR OF THIS SECTION SHALL BE SUBJECT TO COLLECTIVE BARGAINING PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW. D. NOTWITHSTANDING ANY PROVISION OF SUBDIVISION TWELVE OF THIS SECTION TO THE CONTRARY, NOTHING IN THIS SECTION SHALL BE CONSTRUED TO ABROGATE ANY CONFLICTING PROVISIONS OF ANY COLLECTIVE BARGAINING AGREEMENT IN EFFECT ON THE DATE THIS SUBDIVISION TAKES EFFECT AND UNTIL THE ENTRY INTO A SUCCESSOR COLLECTIVE BARGAINING AGREEMENT, PROVIDED THAT NOTWITH- STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, UPON EXPIRATION OF SUCH TERM AND THE ENTRY INTO A SUCCESSOR COLLECTIVE BARGAINING AGREEMENT THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY; AND, PROVIDED FURTHER, HOWEVER, THAT ANY ASSESSMENTS USED IN DETERMINING TRANSITION SCORES AND RATINGS SHALL BE USED IN DETERMINING SCORES AND RATINGS PURSUANT TO THIS SECTION INSTEAD OF THE GRADES THREE THROUGH EIGHT ENGLISH LANGUAGE ARTS AND MATHEMATICS STATE ASSESSMENTS UNTIL THE ENTRY INTO A SUCCESSOR COLLECTIVE BARGAINING AGREEMENT. § 26. Subparagraphs 1 and 2 of paragraph a of subdivision 4 of section 3012-d of the education law, subparagraph 1 as amended by section 3 of subpart C of part B of chapter 20 of the laws of 2015 and subparagraph 2 as added by section 2 of subpart E of part EE of chapter 56 of the laws of 2015, are amended to read as follows: (1) For the first subcomponent, [(A) for a teacher whose course ends in a state-created or administered test for which there is a state-pro- vided growth model, such teacher shall have a state-provided growth S. 1509--C 223 A. 2009--C score based on such model, which shall take into consideration certain student characteristics, as determined by the commissioner, including but not limited to students with disabilities, poverty, English language learner status and prior academic history and which shall identify educators whose students' growth is well above or well below average compared to similar students for a teacher's or principal's students after the certain student characteristics above are taken into account; and (B) for a teacher whose course does not end in a state-created or administered test such teacher] A TEACHER shall have a student learning objective (SLO) consistent with a goal-setting process determined or developed by the commissioner, that results in a student growth score; provided that, for any teacher whose course ends in a state-created or administered assessment [for which there is no state-provided growth model], such assessment [must] MAY be used as the underlying assessment for such SLO; (2) For the optional second subcomponent, a district may locally select a second measure in accordance with this subparagraph. Such second measure shall apply in a consistent manner, to the extent practi- cable, across the district and be either: (A) [a second state-provided growth score] BASED on a state-created or administered test [under clause (A) of subparagraph one of this paragraph], or (B) [a growth score] based on a state-designed supplemental assessment[, calculated using a state-provided or approved growth model]. The optional second subcomponent shall provide options for multiple assessment measures that are aligned to existing classroom and school best practices and take into consideration the recommendations in the testing reduction report as required by section one of subpart F of [the chapter] PART EE OF CHAPTER FIFTY-SIX of the laws of two thousand fifteen which added this section regarding the reduction of unnecessary additional testing. § 27. Subdivision 5 of section 3012-d of the education law, as added by section 2 of subpart E of part EE of chapter 56 of the laws of 2015, is amended to read as follows: 5. Rating determination. The overall rating determination shall be determined [according to a methodology] as follows: a. [The following rules shall apply: a teacher or principal who is (1) rated using two subcomponents in the student performance category and receives a rating of ineffective in such category shall be rated inef- fective overall; provided, however, that if the measure used in the second subcomponent is a state-provided growth score on a state-created or administered test pursuant to clause (A) of subparagraph one of para- graph a of subdivision four of this section, a teacher or principal who receives a rating of ineffective in such category shall not be eligible to receive a rating of effective or highly effective overall; (2) rated using only the state measure subcomponent in the student performance category and receives a rating of ineffective in such category shall not be eligible to receive a rating of effective or highly effective over- all; and (3) rated ineffective in the teacher observations category shall not be eligible to receive a rating of effective or highly effec- tive overall. b. Except as otherwise provided in paragraph a of this subdivision, a teacher's composite score shall be determined as follows: (1)] If a teacher receives an H in the teacher observation category, and an H in the student performance category, the teacher's composite score shall be H; S. 1509--C 224 A. 2009--C [(2)] B. If a teacher receives an H in the teacher observation catego- ry, and an E in the student performance category, the teacher's compos- ite score shall be H; [(3)] C. If a teacher receives an H in the teacher observation catego- ry, and a D in the student performance category, the teacher's composite score shall be E; [(4)] D. If a teacher receives an H in the teacher observation catego- ry, and an I in the student performance category, the teacher's compos- ite score shall be D; [(5)] E. If a teacher receives an E in the teacher observation catego- ry, and an H in the student performance category, the teacher's compos- ite score shall be H; [(6)] F. If a teacher receives an E in the teacher observation catego- ry, and an E in the student performance category, the teacher's compos- ite score shall be E; [(7)] G. If a teacher receives an E in the teacher observation catego- ry, and a D in the student performance category, the teacher's composite score shall be E; [(8)] H. If a teacher receives an E in the teacher observation catego- ry, and an I in the student performance category, the teacher's compos- ite score shall be D; [(9)] I. If a teacher receives a D in the teacher observation catego- ry, and an H in the student performance category, the teacher's compos- ite score shall be E; [(10)] J. If a teacher receives a D in the teacher observation catego- ry, and an E in the student performance category, the teacher's compos- ite score shall be E; [(11)] K. If a teacher receives a D in the teacher observation catego- ry, and a D in the student performance category, the teacher's composite score shall be D; [(12)] L. If a teacher receives a D in the teacher observation catego- ry, and an I in the student performance category, the teacher's compos- ite score shall be I; [(13)] M. If a teacher receives an I in the teacher observation cate- gory, and an H in the student performance category, the teacher's composite score shall be D; [(14)] N. If a teacher receives an I in the teacher observation cate- gory, and an E in the student performance category, the teacher's composite score shall be D; [(15)] O. If a teacher receives an I in the teacher observation cate- gory, and a D in the student performance category, the teacher's compos- ite score shall be I; [(16)] P. If a teacher receives an I in the teacher observation cate- gory, and an I in the student performance category, the teacher's composite score shall be I. § 28. Subdivision 7 of section 3012-d of the education law, as added by section 2 of subpart E of part EE of chapter 56 of the laws of 2015, is amended to read as follows: 7. The commissioner shall ensure that the process by which weights and scoring ranges are assigned to subcomponents and categories is transpar- ent and available to those being rated before the beginning of each school year. Such process must ensure that it is possible for a teacher or principal to obtain any number of points in the applicable scoring ranges, including zero, in each subcomponent. The superintendent, district superintendent or chancellor and the representative of the collective bargaining unit (where one exists) shall certify in the S. 1509--C 225 A. 2009--C district's plan that the evaluation process shall use the standards for the scoring ranges provided by the commissioner. [Provided, however, that in any event, the following rules shall apply: a teacher or princi- pal who is: a. rated using two subcomponents in the student performance category and receives a rating of ineffective in such category shall be rated ineffective overall, except that if the measure used in the second subcomponent is a second state-provided growth score on a state-adminis- tered or sponsored test pursuant to clause (A) of subparagraph one of paragraph a of subdivision four of this section, a teacher or principal that receives a rating of ineffective in such category shall not be eligible to receive a rating of effective or highly effective overall; b. rated using only the state measure subcomponent in the student performance category and receives a rating of ineffective in such cate- gory shall not be eligible to receive a rating of effective or highly effective overall; and c. rated ineffective in the observations category shall not be eligi- ble to receive a rating of effective or highly effective overall.] § 29. Subdivision 10 of section 3012-d of the education law, as added by section 2 of subpart E of part EE of chapter 56 of the laws of 2015, is amended to read as follows: 10. The local collective bargaining representative shall negotiate with the district: a. whether to use a second measure, and, in the event that a second measure is used, which measure to use, pursuant to subparagraph two of paragraph a of subdivision four of this section [and]; b. how to implement the provisions of paragraph b of subdivision four of this section, and associated regulations as established by the commissioner, in accordance with article fourteen of the civil service law; AND C. THE SELECTION AND USE OF AN ASSESSMENT IN A TEACHER OR PRINCIPAL'S EVALUATION PURSUANT TO SUBDIVISION FOUR OF THIS SECTION AND PARAGRAPHS A AND B OF SUBDIVISION SIXTEEN OF THIS SECTION. § 30. 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, as amended by section 35 of part CCC of chapter 59 of the laws of 2018, is amended to read as follows: § 2. This act shall take effect immediately [and shall expire and be deemed repealed on December 31, 2019]. § 31. Intentionally omitted. § 32. Section 2801-a of the education law is amended by adding a new subdivision 10 to read as follows: 10. EVERY SCHOOL SHALL DEFINE THE ROLES AND AREAS OF RESPONSIBILITY OF SCHOOL PERSONNEL, SECURITY PERSONNEL AND LAW ENFORCEMENT IN RESPONSE TO STUDENT MISCONDUCT THAT VIOLATES THE CODE OF CONDUCT. A SCHOOL DISTRICT OR CHARTER SCHOOL THAT EMPLOYS, CONTRACTS WITH, OR OTHERWISE RETAINS LAW ENFORCEMENT OR PUBLIC OR PRIVATE SECURITY PERSONNEL, INCLUDING SCHOOL RESOURCE OFFICERS, SHALL ESTABLISH A WRITTEN CONTRACT OR MEMORANDUM OF UNDERSTANDING THAT IS DEVELOPED WITH STAKEHOLDER INPUT, INCLUDING, BUT NOT LIMITED TO, PARENTS, STUDENTS, SCHOOL ADMINISTRATORS, TEACHERS, COLLECTIVE BARGAINING UNITS, PARENT AND STUDENT ORGANIZATIONS AND COMMU- NITY MEMBERS, AS WELL AS PROBATION OFFICERS, PROSECUTORS, DEFENSE COUN- SELS AND COURTS THAT ARE FAMILIAR WITH SCHOOL DISCIPLINE. SUCH WRITTEN CONTRACT OR MEMORANDUM OF UNDERSTANDING SHALL DEFINE THE RELATIONSHIP BETWEEN A SCHOOL DISTRICT OR CHARTER SCHOOL, SCHOOL PERSONNEL, STUDENTS, S. 1509--C 226 A. 2009--C VISITORS, LAW ENFORCEMENT, AND PUBLIC OR PRIVATE SECURITY PERSONNEL. SUCH CONTRACT OR MEMORANDUM OF UNDERSTANDING SHALL BE CONSISTENT WITH THE CODE OF CONDUCT, DEFINE LAW ENFORCEMENT OR SECURITY PERSONNEL'S ROLES, RESPONSIBILITIES AND INVOLVEMENT WITHIN A SCHOOL AND CLEARLY DELEGATE THE ROLE OF SCHOOL DISCIPLINE TO THE SCHOOL ADMINISTRATION. SUCH WRITTEN CONTRACT OR MEMORANDUM OF UNDERSTANDING SHALL BE INCORPO- RATED INTO AND PUBLISHED AS PART OF THE DISTRICT SAFETY PLAN. § 33. Intentionally omitted. § 34. Intentionally omitted. § 35. 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 25 of part CCC of chapter 59 of the laws of 2018, is amended to read as follows: b. Reimbursement for programs approved in accordance with subdivision a of this section for the [2016--2017 school year shall not exceed 60.3 percent of the lesser of such approvable costs per contact hour or thir- teen dollars ninety cents per contact hour,] 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 fourteen dollars and ninety-five cents per contact hour, AND REIMBURSEMENT FOR THE 2019--2020 SCHOOL YEAR SHALL NOT EXCEED 57.7 PERCENT OF THE LESSER OF SUCH APPROVABLE COSTS PER CONTACT HOUR OR FIFTEEN DOLLARS SIXTY 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 [2016--2017 school year such contact hours shall not exceed one million five hundred fifty-one thousand three hundred twelve (1,551,312); whereas for the] 2017--2018 school year such contact hours shall not exceed one million five hundred forty-nine thousand 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); AND FOR THE 2019--2020 SCHOOL YEAR SUCH CONTACT HOURS SHALL NOT EXCEED ONE MILLION FOUR HUNDRED FORTY-FOUR THOUSAND FOUR HUNDRED FORTY-FOUR (1,444,444). Notwithstand- ing any other provision of law to the contrary, the apportionment calcu- lated for the city school district of the city of New York pursuant to subdivision 11 of section 3602 of the education law shall be computed as if such contact hours provided by the consortium for worker education, not to exceed the contact hours set forth herein, were eligible for aid in accordance with the provisions of such subdivision 11 of section 3602 of the education law. § 36. 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 x to read as follows: X. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY AFTER THE COMPLETION OF PAYMENTS FOR THE 2019--2020 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). S. 1509--C 227 A. 2009--C § 37. 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 27 of part CCC of chapter 59 of the laws of 2018, is amended to read as follows: § 6. This act shall take effect July 1, 1992, and shall be deemed repealed on June 30, [2019] 2020. § 37-a. Paragraph a-1 of subdivision 11 of section 3602 of the educa- tion law, as amended by section 27-a of part CCC of chapter 59 of the laws of 2018, 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 [eighteen] NINETEEN--two thou- sand [nineteen] TWENTY, the commissioner may set aside an amount not to exceed two million five hundred thousand dollars from the funds appro- priated 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. § 38. Subdivisions 22 and 24 of section 140 of chapter 82 of the laws of 1995, amending the education law and other laws relating to state aid to school districts and the appropriation of funds for the support of government, as amended by section 28 of part CCC of chapter 59 of the laws of 2018, 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, [2019] 2024 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, [2019] 2024; § 39. 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 31 of part CCC of chapter 59 of the laws of 2018, 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, [2019] 2020 when upon such date the provisions of this act shall be deemed repealed. § 40. 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 33 of part CCC of chapter 59 of the laws of 2018, is amended to read as follows: § 4. This act shall take effect July 1, 2002 and SECTION ONE OF THIS ACT shall expire and be deemed repealed June 30, 2019, AND SECTIONS TWO AND THREE OF THIS ACT SHALL EXPIRE AND BE DEEMED REPEALED ON JUNE 30, 2020. S. 1509--C 228 A. 2009--C § 41. Section 5 of chapter 101 of the laws of 2003, amending the education law relating to implementation of the No Child Left Behind Act of 2001, as amended by section 34 of part CCC of chapter 59 of the laws of 2018, 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, [2019] 2020. § 42. Section 34 of chapter 91 of the laws of 2002 amending the educa- tion law and other laws relating to reorganization of the New York city school construction authority, board of education and community boards, as amended by section 1 of part G of chapter 61 of the laws of 2017, is amended to read as follows: § 34. This act shall take effect July 1, 2002; provided, that sections one through twenty, twenty-four, and twenty-six through thirty of this act shall expire and be deemed repealed June 30, [2019] 2022 provided, further, that notwithstanding any provision of article 5 of the general construction law, on June 30, [2019] 2022 the provisions of subdivisions 3, 5, and 8, paragraph b of subdivision 13, subdivision 14, paragraphs b, d, and e of subdivision 15, and subdivisions 17 and 21 of section 2554 of the education law as repealed by section three of this act, subdivision 1 of section 2590-b of the education law as repealed by section six of this act, paragraph (a) of subdivision 2 of section 2590-b of the education law as repealed by section seven of this act, section 2590-c of the education law as repealed by section eight of this act, paragraph c of subdivision 2 of section 2590-d of the education law as repealed by section twenty-six of this act, subdivision 1 of section 2590-e of the education law as repealed by section twenty-seven of this act, subdivision 28 of section 2590-h of the education law as repealed by section twenty-eight of this act, subdivision 30 of section 2590-h of the education law as repealed by section twenty-nine of this act, subdi- vision 30-a of section 2590-h of the education law as repealed by section thirty of this act shall be revived and be read as such provisions existed in law on the date immediately preceding the effec- tive date of this act; provided, however, that sections seven and eight of this act shall take effect on November 30, 2003; provided further that the amendments to subdivision 25 of section 2554 of the education law made by section two of this act shall be subject to the expiration and reversion of such subdivision pursuant to section 12 of chapter 147 of the laws of 2001, as amended, when upon such date the provisions of section four of this act shall take effect. § 43. Subdivision 12 of section 17 of chapter 345 of the laws of 2009 amending the education law and other laws relating to the New York city board of education, chancellor, community councils, and community super- intendents, as amended by section 2 of part G of chapter 61 of the laws of 2017, is amended to read as follows: 12. any provision in sections one, two, three, four, five, six, seven, eight, nine, ten and eleven of this act not otherwise set to expire pursuant to section 34 of chapter 91 of the laws of 2002, as amended, or section 17 of chapter 123 of the laws of 2003, as amended, shall expire and be deemed repealed June 30, [2019] 2022. § 43-a. Subdivision 20 of section 2590-e of the education law, as added by chapter 345 of the laws of 2009, is amended to read as follows: 20. Consult on the selection of a community superintendent pursuant to subdivision thirty of section twenty-five hundred ninety-h of this arti- cle. SUCH CONSULTATION SHALL INCLUDE AN OPPORTUNITY FOR THE COMMUNITY COUNCIL TO MEET WITH THE FINAL CANDIDATE OR CANDIDATES THE CHANCELLOR IS S. 1509--C 229 A. 2009--C CONSIDERING APPOINTING AND TO PROVIDE FEEDBACK TO THE CHANCELLOR PRIOR TO THE APPOINTMENT BEING MADE. § 43-b. Paragraph (a) of subdivision 1 of section 2590-b of the educa- tion law, as amended by chapter 345 of the laws of 2009, is amended to read as follows: (a) The board of education of the city school district of the city of New York is hereby continued. (1) (A) Such board of education shall consist of thirteen appointed members: one member to be appointed by each borough president of the city of New York; and eight members to be appointed by the mayor of the city of New York. (B) COMMENCING ON JULY FIRST, TWO THOUSAND TWENTY, THE BOARD OF EDUCA- TION SHALL CONSIST OF FIFTEEN MEMBERS: ONE MEMBER TO BE APPOINTED BY EACH BOROUGH PRESIDENT OF THE CITY OF NEW YORK, ONE MEMBER TO BE ELECTED BY COMMUNITY DISTRICT EDUCATION COUNCIL PRESIDENTS, AND NINE MEMBERS TO BE APPOINTED BY THE MAYOR OF THE CITY OF NEW YORK. ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN, THE CHANCELLOR SHALL PROMULGATE REGULATIONS ESTABLISHING A PROCESS FOR COMMUNITY DISTRICT EDUCATION COUNCIL PRESIDENTS TO ELECT A MEMBER OF THE BOARD, AND PROCESSES FOR REMOVAL OF SUCH MEMBER AND FOR THE FILLING OF SUCH POSITION IN THE EVENT OF A VACANCY. THE FIRST MEMBER ELECTED BY COMMUNITY DISTRICT EDUCATION COUNCIL PRESIDENTS PURSUANT TO SUCH REGULATIONS SHALL TAKE OFFICE ON JULY FIRST, TWO THOUSAND TWENTY AND SHALL SERVE A TERM THAT ENDS ON JUNE THIRTIETH, TWO THOUSAND TWENTY-TWO. THEREAFTER, THE MEMBER ELECTED BY COMMUNITY DISTRICT EDUCATION COUNCIL PRESIDENTS SHALL SERVE FOR A TWO YEAR TERM COMMENCING ON JULY FIRST. (2) The chancellor shall serve as an ex-officio non-voting member of the city board. (3) The city board shall elect its own chairperson from among its voting members. (4) All [thirteen] appointed members shall serve FOR TERMS COTERMINOUS WITH THE TERMS OF THEIR APPOINTING AUTHORITY, PROVIDED THAT ANY MEMBER MAY BE REMOVED at the pleasure of the appointing authority [and], WHO SHALL PROVIDE WRITTEN NOTICE TO THE PUBLIC EXPLAINING THE REASONS THERE- FOR AT LEAST TEN DAYS IN ADVANCE OF THE REMOVAL. (5) EXCEPT FOR THE CHANCELLOR, NO BOARD MEMBERS shall [not] be employed in any capacity by the city of New York, or a subdivision ther- eof, or the city board. (6) No appointed OR ELECTED member of the city board shall also be a member, officer, or employee of any public corporation, authority, or commission where the mayor of the city of New York has a majority of the appointments. (7) Each borough president's appointee shall be a resident of the borough for which the borough president appointing him or her was elected and shall be the parent of a child attending a public school within the city school district of the city of New York. (8) Each mayoral appointee shall be a resident of the city and two shall be parents of a child attending a public school within the city district. (9) All parent members shall be eligible to continue to serve on the city board for two years following the conclusion of their child's attendance at a public school within the city district. (10) Any vacancy shall be filled by appointment by the appropriate appointing authority within ninety days of such vacancy. (11) Notwithstanding any provision of local law, the members of the board shall not have staff, offices, or vehicles assigned to them or S. 1509--C 230 A. 2009--C receive compensation for their services, but shall be reimbursed for the actual and necessary expenses incurred by them in the performance of their duties. § 43-c. Subdivisions 1, 2 and 8 of section 2590-c of the education law, as amended by chapter 345 of the laws of 2009, paragraph (a) of subdivision 1 as amended by section 19 of part YYY of chapter 59 of the laws of 2017, and paragraph (c) of subdivision 8 as amended by chapter 103 of the laws of 2014, are amended and a new subdivision 9 is added to read as follows: 1. Each community district shall be governed by a community district education council. The community councils shall consist of eleven voting members and one non-voting member, as follows: (a) [Nine] (1) FOR COUNCILS WHOSE TERMS BEGIN PRIOR TO TWO THOUSAND TWENTY, NINE voting members shall be parents whose children are attend- ing a school or a pre-kindergarten program offered by a school under the jurisdiction of the community district, or have attended a school or a pre-kindergarten program offered by a school under the jurisdiction of the community district within the preceding two years, and shall be selected by the presidents and officers of the parents' association or parent-teachers' association. Such members shall serve for a term of two years. Presidents and officers of parents' associations or parent-teach- ers' associations who are candidates in the selection process pursuant to this section shall not be eligible to cast votes in such selection process. The association shall elect a member to vote in the place of each such president or officer for the purposes of the selection proc- ess. Provided, however, that a parent of a pre-kindergarten pupil shall vacate his or her membership on such community district education coun- cil where the parent no longer has a child that attends a school or pre-kindergarten program offered by a school under the jurisdiction of the community district. (2) FOR COUNCILS WHOSE TERMS BEGIN IN TWO THOUSAND TWENTY-ONE AND THEREAFTER, NINE VOTING MEMBERS SHALL BE PARENTS WHOSE CHILDREN ARE ATTENDING A SCHOOL OR A PRE-KINDERGARTEN PROGRAM OFFERED BY A SCHOOL UNDER THE JURISDICTION OF THE COMMUNITY DISTRICT, OR HAVE ATTENDED A SCHOOL UNDER THE JURISDICTION OF THE COMMUNITY DISTRICT WITHIN THE PRECEDING TWO YEARS, AND SHALL BE ELECTED BY PARENTS OF CHILDREN ATTEND- ING SUCH SCHOOLS AND PRE-KINDERGARTEN PROGRAMS IN ACCORDANCE WITH A PROCESS DEVELOPED BY THE CHANCELLOR PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION. PROVIDED, HOWEVER, THAT A PARENT OF A PRE-KINDERGARTEN PUPIL SHALL VACATE HIS OR HER MEMBERSHIP ON SUCH COMMUNITY DISTRICT EDUCATION COUNCIL WHEN THE PARENT NO LONGER HAS A CHILD THAT ATTENDS A SCHOOL OR PRE-KINDERGARTEN PROGRAM OFFERED BY A SCHOOL UNDER THE JURIS- DICTION OF THE COMMUNITY DISTRICT. (b) Two voting members shall be appointed by the borough presidents corresponding to such district. Such appointees shall be residents of, or own or operate a business in, the district and shall be individuals with extensive business, trade, or education experience and knowledge, who will make a significant contribution to improving education in the district. Such members shall serve for a term of two years [and may only be reappointed for one additional two year term]. (c) One non-voting member who is a high school senior residing in the district, appointed by the superintendent from among the elected student leadership. Such member shall serve for a one year term. Members shall not be paid a salary or stipend, but shall be reimbursed for all actual and necessary expenses directly related to the duties and responsibilities of the community council. S. 1509--C 231 A. 2009--C 2. For the initial community council, such members must be selected on or before October thirty-first, two thousand three, with terms commenc- ing on December first, two thousand three. Thereafter, commencing in May of two thousand five, the selection OR ELECTION of community council members shall occur on the second Tuesday in May, with terms commencing on the following July first. 8. The chancellor shall: (a) develop a process to ensure a uniform election process for parent associations and parent-teacher associ- ations. Such process shall ensure uniformity with respect to timing of elections and the structure and size of the body. (b) develop a process for nomination of candidates for community coun- cil membership. Such process will outline in detail the procedure which must be followed to present a name for consideration, may include quali- fications and prohibitions in addition to those outlined in this section and may allow for an interview process for nominees. (c) (1) develop selection procedures for community council members which shall attempt to ensure membership that reflects a representative cross-section of the communities within the school district and diversi- ty of the student population including those with particular educational needs, shall include consideration of the enrollment figures within each community district and the potential disparity of such enrollment from school to school within the district, and shall ensure that, to the extent possible, a school may have no more than one parent represen- tative on the community council. Such procedures shall ensure that at least one position on the community council is filled by a parent of a student who is an English language learner or who has been an English language learner within the preceding two years, and at least one posi- tion is filled by a parent of a student with an individualized education program, and shall allow for the seven remaining positions to be filled by parents who are otherwise eligible; (2) AFTER REVIEWING THE RECOMMENDATIONS OF THE TASK FORCE DESCRIBED IN SUBDIVISION NINE OF THIS SECTION, DEVELOP ELECTION PROCEDURES FOR COMMU- NITY COUNCIL MEMBERS WHICH SHALL ATTEMPT TO ENSURE MEMBERSHIP THAT REFLECTS A REPRESENTATIVE CROSS-SECTION OF THE COMMUNITIES WITHIN THE SCHOOL DISTRICT AND DIVERSITY OF THE STUDENT POPULATION INCLUDING THOSE WITH PARTICULAR EDUCATIONAL NEEDS, SHALL INCLUDE CONSIDERATION OF THE ENROLLMENT FIGURES WITHIN EACH COMMUNITY DISTRICT AND THE POTENTIAL DISPARITY OF SUCH ENROLLMENT FROM SCHOOL TO SCHOOL WITHIN THE DISTRICT, AND SHALL ENSURE THAT, TO THE EXTENT POSSIBLE, A SCHOOL MAY HAVE NO MORE THAN ONE PARENT REPRESENTATIVE ON THE COMMUNITY COUNCIL. SUCH MEASURES SHALL ENSURE THAT AT LEAST ONE POSITION ON THE COMMUNITY COUNCIL IS FILLED BY A PARENT OF A CURRENT STUDENT WHO IS OR HAS BEEN AT ANY TIME AN ENGLISH LANGUAGE LEARNER, AND AT LEAST ONE POSITION IS FILLED BY A PARENT OF A STUDENT WHO HAS OR HAS AT ANY TIME HAD AN INDIVIDUALIZED EDUCATION PROGRAM, AND SHALL ALLOW FOR THE SEVEN REMAINING POSITIONS TO BE FILLED BY PARENTS WHO ARE OTHERWISE ELIGIBLE. (d) promulgate rules and regulations requiring financial disclosure by the nominees and policies prohibiting political endorsements of and campaign contributions to nominees. (e) beginning in January of each school year and continuing until the date of selection, ensure the distribution of guides to parents in addi- tion to information regarding community council roles, functions, and activities, including upcoming parents' association and parent-teacher association elections, candidate information, and the nature of the selection OR ELECTION process. S. 1509--C 232 A. 2009--C Prior to the adoption of the processes, procedures, rules or regu- lations set forth in this subdivision, the chancellor shall ensure that there is an inclusive public process which allows for sufficient public input from parents and the community including public hearings. All such processes, procedures, rules or regulations must be final in sufficient time to assure for an orderly implementation and notification of such processes, procedures, rules or regulations to allow for full community participation in the nomination and selection processes and procedures. 9. THE MAYOR SHALL APPOINT A TASK FORCE ON COMMUNITY DISTRICT EDUCA- TION COUNCILS CONSISTING OF PARENTS WHOSE CHILD OR CHILDREN ARE ATTEND- ING A PUBLIC SCHOOL WITHIN THE COMMUNITY DISTRICTS AND OTHER MEMBERS WITH RELEVANT EXPERTISE. THE TASK FORCE SHALL REVIEW THE ELIGIBILITY CRITERIA TO SERVE ON A COMMUNITY DISTRICT EDUCATION COUNCIL, THE PROCESS FOR SELECTING COMMUNITY COUNCIL MEMBERS, AND THEIR TERMS OF OFFICE. THE TASK FORCE SHALL SUBMIT A REPORT CONCERNING ITS FINDINGS AND RECOMMENDA- TIONS TO THE MAYOR AND THE CHANCELLOR BY NOVEMBER FIRST, TWO THOUSAND NINETEEN. § 43-d. The opening paragraph of section 2590-h of the education law, as amended by chapter 345 of the laws of 2009, is amended to read as follows: The office of chancellor of the city district is hereby continued. Such chancellor shall serve at the pleasure of and be employed by the mayor of the city of New York by contract. THE CHANCELLOR SHALL MEET THE REQUIREMENTS OF SUBDIVISION ONE OF SECTION THREE THOUSAND THREE OF THIS CHAPTER, PROVIDED THAT A PERSON WHO HAS BEEN ISSUED A CERTIFICATE AS SUPERINTENDENT OF SCHOOLS PURSUANT TO SUBDIVISION THREE OF SUCH SECTION MAY SERVE AS CHANCELLOR ON THE BASIS OF SUCH CERTIFICATE FOR NO LONGER THAN SIX MONTHS. The length of such contract shall not exceed by more than two years the term of office of the mayor authorizing such contract. The chancellor shall receive a salary to be fixed by the mayor within the budgetary allocation therefor. He or she shall exercise all his or her powers and duties in a manner not inconsistent with the city- wide educational policies of the city board. The chancellor shall have the following powers and duties as the superintendent of schools and chief executive officer for the city district, which the chancellor shall exercise to promote an equal educational opportunity for all students in the schools of the city district, promote fiscal and educa- tional equity, increase student achievement and school performance and encourage local school-based innovation, including the power and duty to: § 43-e. Subdivision 21 of section 2590-e of the education law, as added by chapter 345 of the laws of 2009, is amended to read as follows: 21. Hold a joint public hearing with the chancellor or deputy chancel- lor, or in the case of a proposed significant change in school utiliza- tion the chancellor or his or her designee, and the impacted school based management team regarding any proposed school closing or signif- icant change in school utilization, including the phase-out, grade reconfiguration, re-siting, or co-location of schools, of any public school located within the community district pursuant to subdivision two-a of section twenty-five hundred ninety-h of this article. FOLLOWING SUCH HEARING, THE COMMUNITY COUNCIL MAY PASS A RESOLUTION ON WHETHER TO RECOMMEND OR NOT RECOMMEND TO THE CITY BOARD THE PROPOSED SCHOOL CLOSING OR SIGNIFICANT CHANGE IN SCHOOL UTILIZATION, AND SHALL TRANSMIT IT TO THE CITY BOARD FOR ITS CONSIDERATION AT LEAST SEVEN DAYS IN ADVANCE OF ANY CITY BOARD VOTE ON SUCH ITEM PURSUANT TO SECTION TWENTY-FIVE HUNDRED NINETY-G OF THIS ARTICLE, PROVIDED THAT THE RECEIPT OF SUCH RESOLUTION S. 1509--C 233 A. 2009--C FROM THE COMMUNITY COUNCIL SHALL NOT BE A PRECONDITION FOR THE CITY BOARD TO ACT ON THE MATTER. § 43-f. Paragraph (h) of subdivision 1 of section 2590-g of the educa- tion law, as added by chapter 345 of the laws of 2009, is amended to read as follows: (h) approve proposals for all school closures or significant changes in school utilization including the phase-out, grade reconfiguration, re-siting, or co-location of schools, following any hearing pursuant to subdivision two-a of section twenty-five hundred ninety-h of this arti- cle. IF THE CITY BOARD APPROVES SUCH A PROPOSAL THAT THE RELEVANT COMMU- NITY COUNCIL AFFIRMATIVELY VOTED AGAINST PURSUANT TO SUBDIVISION TWEN- TY-ONE OF SECTION TWENTY-FIVE HUNDRED NINETY-E OF THIS ARTICLE, THE BOARD SHALL PROVIDE SUCH COUNCIL AN EXPLANATION FOR ITS DETERMINATION. § 43-g. Subparagraph (i) of paragraph (a) of subdivision 6 of section 2590-b of the education law, as added by chapter 345 of the laws of 2009, is amended to read as follows: (i) ten voting members who shall be parents of students attending public high schools. [Two] FOR COUNCILS WHOSE TERMS BEGIN PRIOR TO TWO THOUSAND TWENTY, TWO members representing each borough shall be selected by presidents and officers of the parents' associations or parent-teach- ers' associations in the relevant borough, pursuant to a process estab- lished by the chancellor. FOR COUNCILS WHOSE TERMS BEGIN IN TWO THOUSAND TWENTY-ONE AND THEREAFTER, TWO MEMBERS REPRESENTING EACH BOROUGH SHALL BE PARENTS OF PUBLIC HIGH SCHOOL STUDENTS IN THE RELEVANT BOROUGH, PURSUANT TO A PROCESS ESTABLISHED BY THE CHANCELLOR. Such members shall serve a two year term, AND SHALL BE ELIGIBLE TO CONTINUE SERVING THEIR TERM FOLLOWING THE CONCLUSION OF THEIR CHILD'S ATTENDANCE AT A PUBLIC HIGH SCHOOL; § 44. Section 7 of chapter 472 of the laws of 1998, amending the education law relating to the lease of school buses by school districts, as amended by section 40 of part YYY of chapter 59 of the laws of 2017, is amended to read as follows: § 7. This act shall take effect September 1, 1998[, and shall expire and be deemed repealed September 1, 2019]. § 45. Section 2 of chapter 552 of the laws of 1995, amending the education law relating to contracts for the transportation of school children, as amended by section 25 of part A of chapter 54 of the laws of 2016, is amended to read as follows: § 2. This act shall take effect on the first day of January next succeeding the date on which it shall have become a law and shall remain in full force and effect until January 1, [2020] 2023, when upon such date the provisions of this act shall be deemed repealed. § 46. Section 26 of subpart F of part C of chapter 97 of the laws of 2011 amending the education law relating to census reporting, as amended by section 21-a of part A of chapter 56 of the laws of 2014, is amended to read as follows: § 26. This act shall take effect immediately provided, however, that the provisions of section three of this act shall expire June 30, [2019] 2024 when upon such date the provisions of such section shall be deemed repealed; provided, further that the provisions of sections eight, elev- en, twelve, thirteen and twenty of this act shall expire July 1, 2014 when upon such date the provisions of such sections shall be deemed repealed. § 46-a. Section 8 of chapter 89 of the laws of 2016 relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district, as amended by section 30 of S. 1509--C 234 A. 2009--C part CCC of chapter 59 of the laws of 2018, is amended to read as follows: § 8. This act shall take effect July 1, 2016 and shall expire and be deemed repealed June 30, [2019] 2020, 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. § 47. School bus driver training. In addition to apportionments other- wise provided by section 3602 of the education law, for aid payable in the 2019--2020 school year, the commissioner of education shall allocate school bus driver training grants to school districts and boards of cooperative educational services pursuant to sections 3650-a, 3650-b and 3650-c of the education law, or for contracts directly with not-for-pro- fit educational organizations for the purposes of this section. Such payments shall not exceed four hundred thousand dollars ($400,000) per school year. § 48. 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 2020 and not later than the last day of the third full business week of June 2020, 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, 2020, for salary expenses incurred between April 1 and June 30, 2019 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 S. 1509--C 235 A. 2009--C 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. § 49. 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, 2020, 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, 2020 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 S. 1509--C 236 A. 2009--C 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. § 50. 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 2019--2020 school year, as a non-component school district, services required by article 19 of the education law. § 51. The amounts specified in this section shall be a set-aside 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 2019--2020 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 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 S. 1509--C 237 A. 2009--C (ii) any instructional or instructional support costs associated 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 substantial 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 2019--2020 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 2019--2020 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 2019--2020 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. § 52. Support of public libraries. The moneys appropriated for the support of public libraries by a chapter of the laws of 2018 enacting the aid to localities budget shall be apportioned for the 2019--2020 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. S. 1509--C 238 A. 2009--C Notwithstanding any other provision of law to the contrary the moneys appropriated for the support of public libraries for the year 2019--2020 by a chapter of the laws of 2019 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. § 52-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 42-a of part CCC of chapter 59 of the laws of 2018, 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 [2018-19] 2019-20 school year, four million dollars ($4,000,000); for the [2019-20] 2020-21 school year, three million dollars ($3,000,000); for the [2020-21] 2021-22 school year, two million dollars ($2,000,000); for the [2021-22] 2022-23 school year, one million dollars ($1,000,000); and for the [2022-23] 2023-24 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. § 52-b. Paragraph c of subdivision 4 of section 3641 of the education law is amended by adding a new subparagraph 1-a to read as follows: (1-A) COMMENCING NO SOONER THAN THE FIRST DAY IN JANUARY, TWO THOUSAND TWENTY, THE COMMISSIONER SHALL REQUIRE SCHOOL DISTRICTS TO CONDUCT BUILDING CONDITION SURVEYS EVERY FIVE YEARS IN ACCORDANCE WITH REGU- LATIONS OF THE COMMISSIONER. SUCH REGULATIONS SHALL PRESCRIBE THE DATE OR DATES BY WHICH SUCH SURVEYS MUST BE COMPLETED AND SUBMITTED TO THE DEPARTMENT AND SHALL PROVIDE FOR STAGGERED IMPLEMENTATION SO THAT SUCH SURVEYS ARE DISTRIBUTED AS EVENLY AS POSSIBLE THROUGHOUT THE FIVE-YEAR PERIOD BASED ON THE NUMBER OF PUBLIC SCHOOL BUILDINGS, PROVIDED THAT SUCH IMPLEMENTATION SCHEDULE SHALL ENSURE THAT NO REGION OF THE STATE IS OVERREPRESENTED IN A GIVEN SCHEDULED YEAR AND SHALL TO THE EXTENT PRAC- TICABLE PRIORITIZE ASSIGNING TO THE FIRST TWO YEARS OF SUCH SCHEDULE THOSE SCHOOL DISTRICTS WITH THE GREATEST PROPORTIONS OF BUILDINGS WHICH PREVIOUSLY RECEIVED RELATIVELY LOW OVERALL CONDITION RATINGS. § 52-c. Subdivision 6-e of section 3602 of the education law, as amended by chapter 296 of the laws of 2016, is amended to read as follows: 6-e. Additional apportionment of building aid for building condition surveys of school buildings. In addition to the apportionments payable to a school district pursuant to subdivision six of this section, the commissioner is hereby authorized to apportion to any school district additional building aid in accordance with this subdivision for its approved expenses in the base year for building condition surveys of school buildings that are conducted pursuant to this subdivision and subdivision four of section thirty-six hundred forty-one of this arti- cle. The amount of such apportionment shall equal the product of the S. 1509--C 239 A. 2009--C building aid ratio defined pursuant to paragraph c of subdivision six of this section and the actual approved expenses incurred by the district in the base year for each school building so inspected, provided that the amount of such apportionment shall not exceed the building condition survey aid ceiling[, and provided further that such approved expenses shall include approved expenses for testing of potable water systems for lead contamination pursuant to section eleven hundred ten of the public health law]. For surveys conducted in the nineteen hundred ninety-eight- -ninety-nine school year, the building condition aid ceiling shall be twenty cents gross per square foot of floor area. For surveys conducted in the nineteen hundred ninety-nine--two thousand school year and there- after, the inspection aid ceiling shall be twenty cents gross per square foot of floor area, plus an amount computed by the commissioner in accordance with regulations adopted for such purpose, on the basis of an index number reflecting changes in the costs of labor and materials from July first, nineteen hundred ninety-eight. § 52-d. Subdivision 6-h of section 3602 of the education law, as added by chapter 296 of the laws of 2016, is amended to read as follows: 6-h. Building aid for testing and filtering of potable water systems for lead contamination. In addition to the apportionments payable to a school district pursuant to subdivision six of this section, the commis- sioner is hereby authorized to apportion to any school district addi- tional building aid pursuant to this subdivision for its approved expenditures, otherwise ineligible for building aid, in the base year for the testing of potable water systems required pursuant to section eleven hundred ten of the public health law and for the installation of filters and/or other effective remedial measures for immediate remedi- ation in cases where a finding of lead contamination is made pursuant to such section and verified by confirmatory sampling, provided that the cost of installation of such filters and/or other effective remedial measures shall be deemed an approved expenditure only if (i) such installation and/or other effective remedial measures have been approved or reviewed by a professional with expertise in the field of water qual- ity and remediation and (ii) such cost is incurred prior to July first, two thousand nineteen. Such aid shall equal the product of the building aid ratio defined pursuant to paragraph c of subdivision six of this section and the actual approved expenditures incurred in the base year pursuant to this subdivision. COMMENCING IN THE TWO THOUSAND NINETEEN- -TWO THOUSAND TWENTY SCHOOL YEAR AND EVERY YEAR THEREAFTER, ADDITIONAL BUILDING AID PURSUANT TO THIS SUBDIVISION SHALL INCLUDE APPROVED EXPENSES FOR TESTING OF POTABLE WATER SYSTEMS FOR LEAD CONTAMINATION PURSUANT TO SECTION ELEVEN HUNDRED TEN OF THE PUBLIC HEALTH LAW. § 52-e. Paragraph (a) of subdivision 2 of section 409-e of the educa- tion law, as added by section 1 of part B of chapter 56 of the laws of 1998, is amended to read as follows: (a) [Every public school building shall be inspected annually in accordance with the code, provided however, the] THE commissioner may require [more frequent] inspections OF PUBLIC SCHOOL BUILDINGS as deemed necessary to maintain the safety of school buildings and the welfare of their occupants. § 52-f. Subdivision 1 of section 409-d of the education law, as added by section 1 of part B of chapter 56 of the laws of 1998, is amended to read as follows: 1. Program establishment. The commissioner is authorized and directed to establish, develop and monitor a comprehensive public school building safety program which shall include a uniform inspection, safety rating S. 1509--C 240 A. 2009--C and monitoring system. Such program shall require the [annual inspection] INSPECTIONS of all public school buildings throughout [New York] THE state[;] (I) AT LEAST ONCE BETWEEN THE PERIOD COMMENCING WITH THE FIRST DAY OF JANUARY, TWO THOUSAND TWENTY AND ENDING WITH THE THIR- TY-FIRST DAY OF DECEMBER, TWO THOUSAND TWENTY AND (II) AT LEAST ONCE BETWEEN THE PERIOD COMMENCING WITH THE FIRST DAY OF JANUARY, TWO THOU- SAND TWENTY-TWO AND ENDING WITH THE THIRTY-FIRST DAY OF DECEMBER, TWO THOUSAND TWENTY-TWO, PROVIDED THAT SUCH INSPECTIONS SHALL EXCLUDE PUBLIC SCHOOL BUILDINGS IN A SCHOOL DISTRICT REQUIRED TO CONDUCT BUILDING CONDITION SURVEYS BETWEEN JANUARY FIRST, TWO THOUSAND TWENTY AND THE END OF SUCH PERIOD IN ACCORDANCE WITH REGULATIONS OF THE COMMISSIONER ADOPTED PURSUANT TO SUBPARAGRAPH ONE-A OF PARAGRAPH C OF SUBDIVISION FOUR OF SECTION THIRTY-SIX HUNDRED FORTY-ONE OF THIS CHAPTER, AND PROVIDED FURTHER THAT SUCH EXCLUSION SHALL NOT APPLY IN THE CASE OF A SCHOOL DISTRICT WHICH HAS NOT COMPLETED THE BUILDING CONDITION SURVEYS SO REQUIRED AND SUBMITTED THE SAME TO THE DEPARTMENT. UNDER SUCH PROGRAM, THE COMMISSIONER MAY REQUIRE INSPECTIONS OF PUBLIC SCHOOL BUILDINGS AS DEEMED NECESSARY TO MAINTAIN THE SAFETY OF SCHOOL BUILDINGS AND THE WELFARE OF THE OCCUPANTS, AND SUCH PROGRAM SHALL establish a safety rating system for such school buildings to assess the need for maintenance, repairs, rehabilitation, reconstruction, construction and other improvements related to the structural integrity and overall safe- ty of public school buildings including but not limited to building systems related to electrical, plumbing, heating, ventilation, and air conditioning, sanitation and health, fire and accident protection; and require that such ratings be used for the purpose of developing a build- ings condition survey as required pursuant to subdivision four of section thirty-six hundred forty-one of this chapter and a five year facilities plan as required pursuant to clause (i) of subparagraph two of paragraph b of subdivision six of section thirty-six hundred two of this chapter. § 52-g. Paragraphs b and c of subdivision 1 of section 6-r of the general municipal law, as added by chapter 260 of the laws of 2004, are amended to read as follows: b. "Participating employer" means: (I) a participating employer as defined in subdivision twenty of section two of the retirement and social security law or in subdivision twenty of section three hundred two of such law; OR (II) A PARTICIPATING EMPLOYER AS DEFINED IN SUBDIVI- SION THREE OF SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW. c. "Retirement contribution" shall mean all or any portion of the amount payable by a municipal corporation to: (I) either the New York state and local employees' retirement system or the New York state and local police and fire retirement system pursuant to section seventeen or three hundred seventeen of the retirement and social security law; OR (II) THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW. § 52-h. Subdivision 2 of section 6-r of the general municipal law, as added by chapter 260 of the laws of 2004, is amended to read as follows: 2. The governing board of any municipal corporation which is also a participating employer by resolution may establish a retirement contrib- ution reserve fund for the purpose of (A) financing retirement contrib- utions, AND/OR (B) IN THE CASE OF A MUNICIPAL CORPORATION WHICH IS A PARTICIPATING EMPLOYER AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW, FINANCING APPROPRIATIONS AUTHORIZED BY LAW IN ORDER TO OFFSET ALL OR A PORTION OF THE AMOUNT DEDUCTED FROM THE MONEYS APPORTIONED TO THE MUNICIPAL CORPORATION FROM THE STATE FOR THE S. 1509--C 241 A. 2009--C SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW. § 52-i. Section 6-r of the general municipal law is amended by adding a new subdivision 2-a to read as follows: 2-A. WITH RESPECT TO A MUNICIPAL CORPORATION WHICH IS A PARTICIPATING EMPLOYER AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW, WHICH ELECTS TO UTILIZE A RETIREMENT CONTRIBUTION RESERVE FUND (A) TO FINANCE RETIREMENT CONTRIBUTIONS TO THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO SECTION FIVE HUNDRED TWEN- TY-ONE OF THE EDUCATION LAW AND/OR (B) TO OFFSET ALL OR A PORTION OF THE AMOUNT DEDUCTED FROM THE MONEYS APPORTIONED TO THE MUNICIPAL CORPORATION FROM THE STATE FOR THE SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW, SUCH MUNICIPAL CORPORATION SHALL ESTABLISH A SUB-FUND WITHIN THE RETIREMENT CONTRIBUTION RESERVE FUND, WHICH SHALL BE SEPARATELY ADMINISTERED CONSISTENT WITH THE PROVISIONS OF THIS SECTION. SUCH MUNICIPAL CORPORATION MAY PAY INTO SUCH SUB-FUND DURING ANY PARTICULAR FISCAL YEAR AN AMOUNT NOT TO EXCEED TWO PER CENTUM OF THE TOTAL COMPENSATION OR SALARIES OF ALL TEACHERS IN THE EMPLOY OF SAID MUNICIPAL CORPORATION WHO ARE MEMBERS OF THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM PAID DURING THE IMMEDIATELY PRECEDING FISCAL YEAR. THE BALANCE OF SUCH SUB-FUND MAY NOT EXCEED TEN PER CENTUM OF THE TOTAL COMPENSATION OR SALARIES OF ALL TEACHERS IN THE EMPLOY OF THE MUNICIPAL CORPORATION WHO ARE MEMBERS OF THE NEW YORK STATE TEACH- ERS' RETIREMENT SYSTEM PAID DURING THE IMMEDIATELY PRECEDING FISCAL YEAR. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "TEACHER" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED UNDER SUBDIVISION FOUR OF SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW. § 52-j. Subdivision 5 of section 6-r of the general municipal law, as added by chapter 260 of the laws of 2004, is amended to read as follows: 5. The governing board of such municipal corporation by resolution may authorize expenditures from a retirement contribution reserve fund. Except as otherwise provided by law, moneys in a retirement contribution reserve fund may only be expended (A) to finance retirement contrib- utions, AND/OR (B) IN THE CASE OF A MUNICIPAL CORPORATION WHICH IS A PARTICIPATING EMPLOYER, AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW, FOR APPROPRIATIONS AUTHORIZED BY LAW IN ORDER TO OFFSET ALL OR A PORTION OF THE AMOUNT DEDUCTED FROM THE MONEYS APPORTIONED TO THE PARTICIPATING EMPLOYER FROM THE STATE FOR THE SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW. WITH RESPECT TO A MUNICIPAL CORPORATION WHICH IS A PARTICIPATING EMPLOYER AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW, EXPENDITURES FROM THE RETIREMENT CONTRIBUTION RESERVE FUND TO FINANCE RETIREMENT CONTRIBUTIONS TO THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW AND/OR TO OFFSET ALL OR A PORTION OF THE AMOUNT DEDUCTED FROM THE MONEYS APPORTIONED TO THE MUNICIPAL CORPORATION FROM THE STATE FOR THE SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW MAY ONLY BE MADE FROM THE SUB-FUND ESTABLISHED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION. § 52-k. Section 6-r of the general municipal law is amended by adding a new subdivision 11 to read as follows: 11. THE GOVERNING BOARD OF A MUNICIPAL CORPORATION WHICH IS A PARTIC- IPATING EMPLOYER AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW BY RESOLUTION MAY (A) AUTHORIZE THE TRANSFER OF ALL OR A PORTION OF THE MONIES IN THE SEPARATELY ADMINISTERED SUB-FUND AS ESTABLISHED UNDER SUBDIVISION TWO-A OF THIS SECTION TO THE RETIREMENT S. 1509--C 242 A. 2009--C CONTRIBUTION RESERVE FUND, AND/OR (B) AUTHORIZE THE TRANSFER OF ALL OR A PORTION OF THE MONIES IN THE RETIREMENT CONTRIBUTION RESERVE FUND TO THE SEPARATELY ADMINISTERED SUB-FUND AS PROVIDED IN SUBDIVISION TWO-A OF THIS SECTION, SUBJECT TO THE LIMITS ON ANNUAL PAYMENTS INTO THE SUB-FUND AND THE BALANCE OF THE SUB-FUND SPECIFIED BY SUBDIVISION TWO-A OF THIS SECTION. § 52-l. Subparagraph 2 of paragraph a of subdivision 4 of section 1950 of the education law, as amended by chapter 698 of the laws of 2003, is amended to read as follows: (2) Notwithstanding any inconsistent provision of law in no event shall the total salary including amounts paid pursuant to section twen- ty-two hundred nine of this chapter for district superintendents [for each school year through the two thousand two--two thousand three school year exceed ninety-eight percent of that earned by the commissioner for state fiscal year nineteen hundred ninety-two--ninety-three, and in no event shall such total salary for a district superintendent] for the two thousand [three] NINETEEN--two thousand [four] TWENTY school year or any subsequent school year exceed: (i) one hundred six percent of the salary cap applicable in the preceding school year, or (ii) ninety-eight percent of that earned by the commissioner in the two thousand [three] THIRTEEN--two thousand [four] FOURTEEN state fiscal year, whichever is less. In no event shall any district superintendent be permitted to accumulate vacation or sick leave credits in excess of the vacation and sick leave credits managerial/confidential employees of the state are permitted to accumulate pursuant to regulations promulgated by the state civil service commission, nor may any district superintendent at the time of separation from service be compensated for accrued and unused vacation credits or sick leave, or use accrued and unused sick leave for retirement service credit or to pay for health insurance in retirement, at a rate in excess of the rate permitted to managerial/confidential employees of the state pursuant to regulations of the state civil service commission. In addition to the payment of supplementary salary, a board of cooperative educational services may provide for the payment of all or a portion of the cost of insurance benefits for the district superintendent of schools, including but not limited to health insur- ance, disability insurance, life insurance or any other form of insur- ance benefit made available to managerial/confidential employees of the state; provided that any such payments for whole life, split dollar or other life insurance policies having a cash value shall be included in the total salary of the district superintendent for purposes of this subparagraph, and provided further that any payments for the employee contribution, co-pay or uncovered medical expenses under a health insur- ance plan also shall be included in the total salary of the district superintendent. Notwithstanding any other provision of law, payments for such insurance benefits may be based on the district superinten- dent's total salary or the amount of his or her supplementary salary only. Any payments for transportation or travel expenses in excess of actual, documented expenses incurred in the performance of duties for the board of cooperative educational services or the state, and any other lump sum payment not specifically excluded from total salary pursuant to this subparagraph, shall be included in the total salary of the district superintendent for purposes of this subparagraph. Nothing herein shall prohibit a district superintendent from waiving any rights provided for in an existing contract or agreement as hereafter prohibit- ed in favor of revised compensation or benefit provisions as permitted herein. In no event shall the terms of the district superintendent's S. 1509--C 243 A. 2009--C contract, including any provisions relating to an increase in salary, compensation or other benefits, be contingent upon the terms of any contract or collective bargaining agreement between the board of cooper- ative educational services and its teachers or other employees. The commissioner may adopt regulations for the purpose of implementing the provisions of this paragraph. § 52-m. A chapter of the laws of 2019, amending the education law relating to state assessments and teacher evaluations, as proposed in legislative bill numbers S. 1262 and A. 783, is REPEALED. § 53. 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. § 54. This act shall take effect immediately, and shall be deemed to have been in full force and effect on and after April 1, 2019, provided, however, that: 1. Sections one, three, four, five, five-a, five-b, five-c, five-d, six, seven, eight, nine, ten, sixteen, seventeen, eighteen, nineteen, twenty-one, twenty-two, twenty-three, thirty-two, thirty-four, thirty- seven-a, forty-seven, fifty, fifty-one and fifty-two-a of this act shall take effect July 1, 2019; 2. Sections eleven, twelve, thirteen and fourteen of this act shall take effect July 1, 2020; 3. Paragraph (a) of subdivision 7-a of section 804 of the education law, as added by section thirty-three of this act, shall take effect July 1, 2019; 4. The amendments to section 3614 of the education law made by section two of this act shall not affect the repeal of such section and shall be deemed repealed therewith; 5. 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 thirty-five and thirty-six of this act shall not affect the repeal of such chapter and shall be deemed repealed therewith; 6. The amendments to sections 2590-b, 2590-c, 2590-e, 2590-h and 2590-g of the education law made by sections forty-three-a, forty-three-b, forty-three-c, forty-three-d, forty-three-e and forty- three-f of this act shall not affect the expiration or repeal of such provisions and shall expire and be deemed repealed therewith; and 7. Section fifty-two-f of this act shall take effect on the same date as the reversion of subdivision 1 of section 409-d of the education law as provided in section 3 of chapter 437 of the laws of 2014. PART ZZZ Section 1. This act shall be known and may be cited as the "MTA reform and traffic mobility act". § 2. This enacts into law major components of legislation which are necessary to enact the MTA reform and traffic mobility act. Each compo- S. 1509--C 244 A. 2009--C nent is wholly contained within a Subpart identified as Subparts A through F. 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 reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section four of this act sets forth the general effective date of this act. SUBPART A Section 1. The vehicle and traffic law is amended by adding a new article 44-C to read as follows: ARTICLE 44-C CENTRAL BUSINESS DISTRICT TOLLING PROGRAM SECTION 1701. LEGISLATIVE FINDINGS AND DECLARATION. 1702. SHORT TITLE. 1703. DEFINITIONS. 1704. ESTABLISHMENT OF CENTRAL BUSINESS DISTRICT TOLLING PROGRAM. 1704-A. CENTRAL BUSINESS DISTRICT TOLL. 1705. DISPOSITION OF REVENUE AND PENALTIES. 1706. REPORTING. § 1701. LEGISLATIVE FINDINGS AND DECLARATION. THE ONGOING FAILURES OF THE TRACKS, SIGNALS, SWITCHES, ELECTRICAL POWER, AND OTHER TRANSPORTA- TION INFRASTRUCTURE THROUGHOUT THE SUBWAY SYSTEM IN THE CITY OF NEW YORK CONTINUE TO HAVE A SIGNIFICANT DELETERIOUS IMPACT ON THE HEALTH, SAFETY, AND LIVELIHOOD OF COMMUTERS, TOURISTS, RESIDENT NEW YORKERS, AS WELL AS BUSINESS AND COMMERCE IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT, WHICH IS THE RECOGNIZED ECONOMIC ENGINE OF THE STATE OF NEW YORK, AND THEREBY HAVE ADVERSELY AFFECTED THE ECONOMY OF THE STATE OF NEW YORK. TEMPORARY ACTIONS HAVE BEEN TAKEN TO ADDRESS THE SAFETY OF SUBWAY, BUS AND COMMUTER RAIL RIDERS IN THE SHORT TERM INCLUDING AN EMERGENCY DECLARATION AND INCREASED CAPITAL FUNDING FOR THE SUBWAYS IN THE MOST RECENTLY ADOPTED STATE BUDGET. THE LEGISLATURE, HOWEVER, DETER- MINES THAT A LONG-TERM AND SUSTAINABLE SOLUTION IS NECESSARY IN ORDER TO ENSURE STABLE AND RELIABLE FUNDING TO REPAIR AND REVITALIZE THIS SIGNIF- ICANTLY IMPORTANT MASS TRANSIT ASSET. THE LEGISLATURE FURTHER FINDS AND DECLARES THAT TRAFFIC CONGESTION IN THE CITY OF NEW YORK RANKS SECOND WORST AMONG CITIES IN THE UNITED STATES AND THIRD WORST AMONG CITIES IN THE WORLD, AND RESULTS IN SIGNIF- ICANT COST TO THE NEW YORK METROPOLITAN AREA ECONOMY AND IN TURN THE STATE'S ECONOMY AT ESTIMATES EXCEEDING ONE HUNDRED BILLION DOLLARS OVER THE NEXT FIVE YEARS. TRAVEL SPEEDS IN THE CITY OF NEW YORK'S CENTRAL BUSINESS DISTRICT HAVE DROPPED MORE THAN SEVENTEEN PERCENT IN TWO THOU- SAND SIXTEEN TO AN AVERAGE OF 6.8 MILES PER HOUR AND IN MIDTOWN MANHAT- TAN, THE MOST CONGESTED AREA OF THE CITY-THE AREA FROM FIFTY-NINTH STREET TO THIRTY-FIFTH STREET AND FROM NINTH AVENUE TO THE EAST RIVER- THE AVERAGE VEHICULAR SPEED IS 4.7 MILES PER HOUR. CONGESTION IN THESE AREAS IS CRIPPLING AND IMPACTS THE EVERYDAY LIVES OF RESIDENTS, COMMU- TERS, TAXI AND FOR-HIRE VEHICLE TRAFFIC, BUS TRANSIT AND EMERGENCY SERVICES, AND IS A SIGNIFICANT CONTRIBUTOR TO DECREASED AIR QUALITY. THESE ISSUES HAVE BEEN RECOGNIZED BY BOTH THE FIX NYC ADVISORY PANEL AND THE METROPOLITAN TRANSPORTATION SUSTAINABILITY ADVISORY WORKGROUP AS SIGNIFICANT IMPEDIMENTS TO EVERYDAY NEW YORKERS. S. 1509--C 245 A. 2009--C IN ORDER TO ENSURE A SAFE AND EFFICIENT MASS TRANSIT SYSTEM WITHIN THE CITY OF NEW YORK AND TO PROTECT THE PUBLIC HEALTH AND SAFETY OF NEW YORK'S RESIDENTS, A PROGRAM TO ESTABLISH TOLLS FOR VEHICLES ENTERING OR REMAINING IN THE MOST CONGESTED AREA OF THE STATE IS FOUND TO BE NECES- SARY AND TO BE A MATTER OF SUBSTANTIAL STATE CONCERN. § 1702. SHORT TITLE. THIS ACT SHALL BE KNOWN AS AND MAY BE CITED AS "THE TRAFFIC MOBILITY ACT". § 1703. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES: 1. "CITY" MEANS THE CITY OF NEW YORK. 2. "CENTRAL BUSINESS DISTRICT TOLL" MEANS A TOLL CHARGED FOR ENTRY INTO OR REMAINING IN THE CENTRAL BUSINESS DISTRICT AS DESCRIBED IN SECTION SEVENTEEN HUNDRED FOUR OF THIS ARTICLE. 3. "CENTRAL BUSINESS DISTRICT TOLLING PROGRAM" MEANS THE PROGRAM FOR CHARGING TOLLS FOR VEHICLES THAT ENTER OR REMAIN IN THE CENTRAL BUSINESS DISTRICT AND INCLUDES THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUC- TURE, THE CENTRAL BUSINESS DISTRICT TOLLING COLLECTION SYSTEM AND THE CENTRAL BUSINESS DISTRICT TOLLING CUSTOMER SERVICE CENTER. 4. "CENTRAL BUSINESS DISTRICT" MEANS THE AREA DESCRIBED IN SECTION SEVENTEEN HUNDRED FOUR OF THIS ARTICLE FOR WHICH TOLLS SHALL BE CHARGED FOR A VEHICLE'S ENTRY INTO OR REMAINING IN SUCH DISTRICT. 5. "CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE" MEANS THE DEVICES AND STRUCTURES INCLUDING BUT NOT LIMITED TO GANTRIES, CLEAR SIGNAGE DELINEATING ENTRY INTO THE CENTRAL BUSINESS DISTRICT AND TOLL AMOUNTS, AND POWER AND COMMUNICATION LINES THAT THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY WILL PLAN, DESIGN, CONSTRUCT, AND USE AS PART OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM. SUCH INFRASTRUCTURE SHALL BE PLANNED, DESIGNED, INSTALLED AND CONSTRUCTED PURSUANT TO THE MEMORANDUM OF UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF SECTION SEVENTEEN HUNDRED FOUR OF THIS ARTICLE. 6. "CENTRAL BUSINESS DISTRICT TOLLING COLLECTION SYSTEM" MEANS THE ELECTRONIC SYSTEM OF COLLECTING TOLLS OR OTHER CHARGES USING ELECTRONIC DATA AND/OR IMAGES THAT THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY WILL PLAN, DESIGN, INSTALL AND CONSTRUCT PURSUANT TO THE MEMORANDUM OF UNDER- STANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF SECTION SEVENTEEN HUNDRED FOUR OF THIS ARTICLE, AND THAT SUCH AUTHORITY SHALL OPERATE AS PART OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM. 7. "CENTRAL BUSINESS DISTRICT TOLLING CUSTOMER SERVICE CENTER" MEANS THE CUSTOMER CONTACT AND BACK-OFFICE SYSTEM AND OPERATION SERVICES FOR THE COLLECTION OF CENTRAL BUSINESS DISTRICT TOLLS AND ENFORCEMENT OF CENTRAL BUSINESS DISTRICT TOLL VIOLATIONS THAT THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY WILL PLAN, DESIGN, IMPLEMENT AND OPERATE AS PART OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM. 8. "OPERATION DATE" MEANS THE DATE DETERMINED BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY, WHICH SHALL NOT BE EARLIER THAN DECEMBER THIRTY- FIRST, TWO THOUSAND TWENTY, FOR THE BEGINNING OF THE OPERATION AND ENFORCEMENT OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM. THE OPER- ATION AND ENFORCEMENT DATE SHALL COMMENCE ONLY AFTER AN INITIAL PROGRAM TESTING PERIOD OF THIRTY DAYS WHERE NO COLLECTION OF ANY TOLLS, FEES, OR OTHER CHARGES SHALL BE AUTHORIZED. AS OF THE COMMENCEMENT DATE OF OPERA- TION AND ENFORCEMENT, THERE SHALL BE A PERIOD OF SIXTY DAYS WHERE ONLY THE ESTABLISHED TOLLS MAY BE COLLECTED WITHOUT THE COLLECTION OF OTHER FEES OR CHARGES OR FINES. 9. "TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY" MEANS THE CORPORATION ORGANIZED PURSUANT TO SECTION FIVE HUNDRED FIFTY-TWO OF THE PUBLIC AUTHORITIES LAW AS CONSOLIDATED PURSUANT TO SECTION FIVE HUNDRED FIFTY- S. 1509--C 246 A. 2009--C TWO-A OF THE PUBLIC AUTHORITIES LAW OR ANY SUCCESSOR CORPORATION OR CORPORATION INTO WHICH IT MAY BE CONSOLIDATED. § 1704. ESTABLISHMENT OF CENTRAL BUSINESS DISTRICT TOLLING PROGRAM. 1. THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL ESTABLISH THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM. 2. THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM WILL OPERATE IN THE CENTRAL BUSINESS DISTRICT. THE CENTRAL BUSINESS DISTRICT SHALL INCLUDE ANY ROADWAYS, BRIDGES, TUNNELS, APPROACHES OR RAMPS THAT ARE LOCATED WITHIN, OR ENTER INTO, THE GEOGRAPHIC AREA IN THE BOROUGH OF MANHATTAN SOUTH OF AND INCLUSIVE OF SIXTIETH STREET TO THE EXTENT PRACTICABLE BUT SHALL NOT INCLUDE THE FDR DRIVE, AND NEW YORK STATE ROUTE 9A OTHERWISE KNOWN AS THE "WEST SIDE HIGHWAY" INCLUDING THE BATTERY PARK UNDERPASS AND ANY SURFACE ROADWAY PORTION OF THE HUGH L. CAREY TUNNEL CONNECTING TO WEST ST. THE BOUNDARIES OF THE CENTRAL BUSINESS DISTRICT SHALL NOT BE MODIFIED, EXPANDED, OR REDUCED AND SHALL INCORPORATE THE OUTER BOUNDS OF THE AFOREMENTIONED DISTRICT TO THE EXTENT PRACTICABLE. 2-A. THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH THE CITY DEPARTMENT OF TRANSPORTATION FOR PURPOSES OF COORDINATING THE PLANNING, DESIGN, INSTALLATION, CONSTRUCTION AND MAINTENANCE OF THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE INCLUDING REQUIRED SIGNAGE. THE MEMORANDUM SHALL ADDRESS THE USE OF EXISTING SYSTEMS, DEVICES AND OTHER FACILITIES OWNED AND OPERATED BY THE CITY FOR THE PURPOSES OF A CENTRAL BUSINESS DISTRICT TOLLING PROGRAM, AS WELL AS REIMBURSABLE COSTS ASSOCIATED WITH THE PLAN- NING, DESIGN, INSTALLATION, CONSTRUCTION AND MAINTENANCE OF SUCH PROGRAM. SUCH MEMORANDUM OF UNDERSTANDING SHALL BE ENTERED INTO NO LATER THAN SIXTY DAYS FROM THE EFFECTIVE DATE OF THIS ARTICLE. 3. (A) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY, PURSUANT TO THE MEMORANDUM OF UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION WITH THE CITY DEPARTMENT OF TRANSPORTATION SHALL PLAN, DESIGN, INSTALL, CONSTRUCT, AND MAINTAIN THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE. THE CITY OF NEW YORK SHALL COOPERATE AND CONSULT WITH THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY TO FACILITATE THE PLANNING, DESIGN, CONSTRUCTION, TIME- LY IMPLEMENTATION, AND MAINTENANCE OF THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE AND SHALL NOT UNDULY HINDER OR DELAY THE PLAN- NING, DESIGNING, INSTALLATION, OPERATION, CONSTRUCTION, TIMELY IMPLEMEN- TATION, OR MAINTENANCE OF THE SAME. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE CITY OF NEW YORK SHALL, PURSUANT TO THE MEMORANDUM OF UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION WITH THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY, BE AUTHORIZED TO PROVIDE FOR THE USE OF EXISTING SYSTEMS, DEVICES AND OTHER FACILITIES OWNED AND OPERATED BY THE CITY, INCLUDING, BUT NOT LIMITED TO SYSTEMS AND DEVICES INSTALLED PURSUANT TO SECTIONS ONE THOUSAND ONE HUNDRED ELEVEN-A, ONE THOUSAND ONE HUNDRED ELEVEN-C, AND ONE THOUSAND ONE HUNDRED EIGHTY-B OF THIS CHAPTER TO FACILITATE THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY'S CENTRAL BUSINESS DISTRICT TOLLING PROGRAM AND SHALL WORK WITH THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY TO FACILITATE THE SAME. (B) THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL, PURSUANT TO THE MEMORANDUM OF UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION WITH THE CITY DEPARTMENT OF TRANSPORTATION, PLAN, DESIGN, INSTALL, CONSTRUCT, AND MAINTAIN A CENTRAL BUSINESS DISTRICT TOLL COLLECTION SYSTEM AND IMPLEMENT AND OPERATE THE SAME TO COLLECT THE CENTRAL BUSINESS DISTRICT TOLL. S. 1509--C 247 A. 2009--C (C) THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL PLAN, DESIGN, IMPLEMENT AND OPERATE A CENTRAL BUSINESS DISTRICT TOLL CUSTOMER SERVICE CENTER. (D) THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM SHALL BE PLANNED, DESIGNED, IMPLEMENTED AND OPERATED TO FACILITATE PAYMENT OF CENTRAL BUSINESS DISTRICT TOLLS BY CREDIT OR DEBIT CARD, CHECK OR AUTOMATED CLEARING HOUSE PAYMENT, BY TELEPHONE OR OVER THE INTERNET OR ANY OTHER METHOD OF PAYMENT THAT THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY MAY IMPLEMENT. (E) ALL PROCUREMENTS OF GOODS, SERVICES OR CONSTRUCTION OF ANY KIND BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY FOR THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM SHALL BE DEEMED TO BE SUBJECT ONLY TO THE SAME REQUIREMENTS THAT OTHERWISE APPLY TO PROCUREMENTS BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY. (F) SIGNAGE SHALL BE CLEARLY DELINEATED TO PROVIDE NOTICE AT A REASON- ABLE DISTANCE PRIOR TO, AND UPON ENTRY INTO, THE CENTRAL BUSINESS DISTRICT AND UPON EXIT FROM THE CENTRAL BUSINESS DISTRICT. SIGNAGE PRIOR TO ENTRY MUST INCLUDE THE TOLL RATES TO BE CHARGED. ADDITIONALLY, SIGNAGE SHALL BE PROVIDED, WHERE PRACTICABLE, TO PROVIDE DRIVERS ADEQUATE NOTICE TO AVOID ENTRY INTO THE CENTRAL BUSINESS DISTRICT. DESIGN, PLACEMENT AND INSTALLATION OF SIGNAGE BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL BE PERFORMED PURSUANT TO THE MEMORANDUM OF UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION WITH THE CITY DEPARTMENT OF TRANSPORTATION. 4. THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE, THE CENTRAL BUSINESS DISTRICT TOLL COLLECTION SYSTEM AND THE CENTRAL BUSINESS DISTRICT TOLLING CUSTOMER SERVICE CENTER SHALL BE COMPLETED BY THE OPER- ATION DATE. 5. RESPONSIBILITY FOR MAINTENANCE OF THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE AFTER THE OPERATION DATE SHALL BE PERFORMED BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY PURSUANT TO THE MEMORANDUM OF UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION WITH THE CITY DEPARTMENT OF TRANSPORTATION. 6. THE PLANNING, DESIGNING, CONSTRUCTING, INSTALLING OR MAINTAINING OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM AND THE PLANNING, DESIGN- ING, INSTALLING, CONSTRUCTING, OPERATING OR MAINTAINING OF THE CENTRAL BUSINESS DISTRICT TOLL COLLECTION SYSTEM BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY INCLUDING THE ESTABLISHMENT BY SUCH AUTHORITY OF CENTRAL BUSINESS DISTRICT TOLLS, AND ANY OTHER FEES OR RENTALS FOR THE USE OF ITS PROJECTS AND ANY CHANGES THEREAFTER SHALL NOT BE SUBJECT TO THE PROVISIONS OF ARTICLE EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW, THE PROVISIONS OF CHAPTER SIX OF ARTICLE FORTY-THREE OR CHAPTER FIVE OF TITLE SIXTY-TWO OF THE RULES OF THE CITY OF NEW YORK, OR THE PROVISIONS OF SECTION ONE HUNDRED NINETY-SEVEN-C OF THE NEW YORK CITY CHARTER, RELATING TO A UNIFORM LAND USE REVIEW PROCEDURE, NOR THE PROVISIONS OF ANY OTHER LOCAL LAW OF THE CITY OF NEW YORK OF LIKE OR SIMILAR EFFECT INCLUDING APPROVALS OR CHARGES ASSOCIATED WITH THE USE OF PROPERTY OWNED AND MAINTAINED BY THE CITY OF NEW YORK NECESSARY FOR THE INSTALLATION OF CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE NOR SHALL THE DETERMI- NATION OF THE CENTRAL BUSINESS DISTRICT TOLL AMOUNTS BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY BOARD BE SUBJECT TO ANY SUCH PROVISIONS OF LAW. THE PLANNING, DESIGNING, INSTALLING, CONSTRUCTING OR MAINTAINING OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL BE PERFORMED PURSUANT TO THE MEMORANDUM OF UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION. S. 1509--C 248 A. 2009--C § 1704-A. CENTRAL BUSINESS DISTRICT TOLL. 1. CONSISTENT WITH THE GOALS OF REDUCING TRAFFIC CONGESTION WITHIN THE CENTRAL BUSINESS DISTRICT AND FUNDING CAPITAL PROJECTS THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL HAVE THE POWER, SUBJECT TO AGREEMENTS WITH ITS BONDHOLDERS, AND APPLICABLE FEDERAL LAW TO ESTABLISH AND CHARGE VARIABLE TOLLS AND FEES FOR VEHICLES ENTERING OR REMAINING IN THE CENTRAL BUSINESS DISTRICT AT ANY TIME AND SHALL HAVE THE POWER, SUBJECT TO AGREEMENTS WITH BONDHOLD- ERS, AND APPLICABLE FEDERAL LAW TO MAKE RULES AND REGULATIONS FOR THE ESTABLISHMENT AND COLLECTION OF CENTRAL BUSINESS DISTRICT TOLLS, FEES, AND OTHER CHARGES. FOR PURPOSES OF ESTABLISHING A CENTRAL BUSINESS DISTRICT TOLL OR TOLLS THE BOARD SHALL, AT MINIMUM, ENSURE ANNUAL REVEN- UES AND FEES COLLECTED UNDER SUCH PROGRAM, LESS COSTS OF OPERATION OF THE SAME, PROVIDE FOR SUFFICIENT REVENUES INTO THE CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCKBOX FUND, ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED FIFTY-THREE-J OF THE PUBLIC AUTHORITIES LAW NECESSARY TO FUND FIFTEEN BILLION DOLLARS FOR CAPITAL PROJECTS FOR THE 2020 TO 2024 MTA CAPITAL PROGRAM, AND ANY ADDITIONAL REVENUES ABOVE THAT AMOUNT TO BE AVAILABLE FOR ANY SUCCESSOR PROGRAMS. ADDITIONALLY, NO TOLL MAY BE ESTABLISHED AND CHARGED ON PASSENGER VEHICLES REGISTERED PURSUANT TO SUBDIVISION SIX OF SECTION FOUR HUNDRED ONE OF THIS CHAPTER MORE THAN ONCE PER DAY FOR PURPOSES OF ENTERING THE CENTRAL BUSINESS DISTRICT. 2. NO QUALIFYING AUTHORIZED EMERGENCY VEHICLE AS DEFINED PURSUANT TO SECTION ONE HUNDRED ONE OF THIS CHAPTER OR A QUALIFYING VEHICLE TRANS- PORTING A PERSON WITH DISABILITIES SHALL BE CHARGED A CENTRAL BUSINESS DISTRICT TOLL IF IT ENTERS OR REMAINS IN THE CENTRAL BUSINESS DISTRICT. APPLICATION FOR SUCH TOLL EXEMPTION SHALL BE MADE IN SUCH MANNER AS PRESCRIBED BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY AND SHALL CONTAIN SUCH INFORMATION AS THE AUTHORITY MAY REASONABLY REQUIRE. 3. (A) THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL IMPLEMENT A PLAN FOR CREDITS, DISCOUNTS AND/OR EXEMPTIONS FOR TOLLS PAID ON BRIDGES AND CROSSINGS INFORMED BY THE RECOMMENDATIONS OF THE TRAFFIC MOBILITY REVIEW BOARD. (B) THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL BE AUTHORIZED TO PROVIDE ADDITIONAL CREDITS, DISCOUNTS AND EXEMPTIONS INFORMED BY THE RECOMMENDATIONS OF THE TRAFFIC MOBILITY REVIEW BOARD AND A TRAFFIC STUDY THAT CONSIDERS IMPACT. 4. THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL IMPLEMENT A PLAN TO ADDRESS CREDITS, DISCOUNTS, AND/OR EXEMPTIONS FOR FOR-HIRE VEHICLES AS DEFINED BY, AND SUBJECT TO A SURCHARGE IMPOSED BY, ARTICLE TWENTY- NINE-C OF THE TAX LAW FOR A FOR-HIRE TRANSPORTATION TRIP, INFORMED BY THE RECOMMENDATION OF THE TRAFFIC MOBILITY REVIEW BOARD. § 1705. DISPOSITION OF REVENUE AND PENALTIES. THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL ESTABLISH AND COLLECT CENTRAL BUSINESS DISTRICT TOLLS, FEES AND OTHER CHARGES AS PROVIDED IN SUBDIVISION TWELVE-A OF SECTION FIVE HUNDRED FIFTY-THREE OF THE PUBLIC AUTHORITIES LAW. § 1706. REPORTING. BEGINNING ONE YEAR AFTER THE OPERATION DATE AND EVERY TWO YEARS THEREAFTER, THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY, IN CONSULTATION WITH THE CITY DEPARTMENT OF TRANSPORTATION SHALL REPORT ON THE EFFECT OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM ON TRAF- FIC CONGESTION IN AND AROUND THE CENTRAL BUSINESS DISTRICT AND ON MASS TRANSIT USE AND TAXI AND FOR-HIRE VEHICLE USE INCLUDING THE VEHICLE- MILES TRAVELED FOR EACH TRIP WITHIN THE CENTRAL BUSINESS DISTRICT FOR TAXIS AND FOR-HIRE VEHICLES; THE CURRENT AND HISTORIC VOLUME AND TYPE OF VEHICLES INCLUDING, BUT NOT LIMITED TO, COMMERCIAL TRUCKS, TRANSPORTA- TION NETWORK COMPANIES, TAXIS, PRIVATE CARS, AND TOUR BUSES, ENTERING S. 1509--C 249 A. 2009--C THE CENTRAL BUSINESS DISTRICT; ENVIRONMENTAL IMPROVEMENTS, INCLUDING BUT NOT LIMITED TO, AIR QUALITY, AND EMISSIONS TRENDS IN AND AROUND THE CENTRAL BUSINESS DISTRICT; CONGESTION REDUCTION MEASURES; AND TRANSIT RIDERSHIP AND AVERAGE BUS SPEEDS WITHIN THE CENTRAL BUSINESS DISTRICT, AND ON ALL RECEIPTS AND EXPENDITURES RELATING TO THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM. THE DEPARTMENT OF TRANSPORTATION OF THE CITY OF NEW YORK SHALL BE REQUIRED TO ASSIST IN GATHERING AND PROVIDING TO THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY TRAFFIC IMPACT DATA AND OTHER RELATED DATA AS DIRECTED BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY FOR PURPOSES OF COMPILING SUCH REPORT. THE REPORT SHALL BE READILY AVAILABLE TO THE PUBLIC, AND SHALL BE POSTED ON THE AUTHORITY'S WEBSITE AND BE SUBMITTED TO THE GOVERNOR, THE DIRECTOR OF THE BUDGET, THE TEMPO- RARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MAYOR AND COUNCIL SPEAKER OF THE CITY OF NEW YORK, THE METROPOLITAN TRANSPORTATION AUTHORITY BOARD AND THE METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PROGRAM REVIEW BOARD. § 2. Subdivision 4 of section 1630 of the vehicle and traffic law is amended to read as follows: 4. Charging of tolls, taxes, fees, licenses or permits for the use of the highway or any of its parts OR ENTRY INTO OR REMAINING WITHIN THE CENTRAL BUSINESS DISTRICT ESTABLISHED BY ARTICLE FORTY-FOUR-C OF THIS CHAPTER, where the imposition thereof is authorized by law. § 3. Subdivision 9 of section 553 of the public authorities law is amended by adding a new paragraph (s) to read as follows: (S) THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM TO THE EXTENT SPECI- FIED IN ARTICLE FORTY-FOUR-C OF THE VEHICLE AND TRAFFIC LAW AND IN THIS TITLE. § 4. Section 553 of the public authorities law is amended by adding a new subdivision 12-a to read as follows: 12-A. TO ESTABLISH AND CHARGE VARIABLE TOLLS, FEES AND OTHER CHARGES FOR VEHICLES ENTERING OR REMAINING WITHIN THE CENTRAL BUSINESS DISTRICT AND TO MAKE RULES AND REGULATIONS FOR THE COLLECTION OF SUCH TOLLS, FEES AND OTHER CHARGES, SUBJECT TO AND IN ACCORDANCE WITH SUCH AGREEMENT WITH BONDHOLDERS AND APPLICABLE FEDERAL LAW AS MAY BE MADE AS HEREINAFTER PROVIDED. SUBJECT TO AGREEMENTS WITH BONDHOLDERS AND APPLICABLE FEDERAL LAW, ALL TOLLS, FEES AND OTHER REVENUES DERIVED FROM THE CENTRAL BUSI- NESS DISTRICT TOLLING PROGRAM SHALL BE APPLIED TO THE PAYMENT OF OPERAT- ING, ADMINISTRATION, AND OTHER NECESSARY EXPENSES OF THE AUTHORITY PROP- ERLY ALLOCABLE TO SUCH PROGRAM, INCLUDING THE CAPITAL COSTS OF SUCH PROGRAM, AND TO THE PAYMENT OF INTEREST OR PRINCIPAL OF BONDS, NOTES OR OTHER OBLIGATIONS OF THE AUTHORITY OR THE METROPOLITAN TRANSPORTATION AUTHORITY ISSUED FOR TRANSIT AND COMMUTER PROJECTS AS PROVIDED IN SECTION FIVE HUNDRED FIFTY-THREE-J OF THIS TITLE, AND SHALL NOT BE SUBJECT TO DISTRIBUTION UNDER SECTION FIVE HUNDRED SIXTY-NINE-C OF THIS TITLE OR SECTION TWELVE HUNDRED NINETEEN-A OF THIS CHAPTER. THE PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED FOUR OF THIS CHAPTER SHALL NOT BE APPLICABLE TO THE TOLLS AND FEES ESTABLISHED BY THE AUTHORITY PURSUANT TO THIS SUBDIVISION. ANY SUCH FARES, TOLLS, AND OTHER CHARGES SHALL BE ESTABLISHED AND CHANGED ONLY IF APPROVED BY RESOLUTION OF THE AUTHORITY ADOPTED BY NOT LESS THAN A MAJORITY VOTE OF THE WHOLE NUMBER OF MEMBERS OF THE AUTHORITY THEN IN OFFICE, WITH THE CHAIRMAN HAVING ONE ADDITIONAL VOTE IN THE EVENT OF A TIE VOTE, AND ONLY AFTER A PUBLIC HEARING. § 5. The public authorities law is amended by adding a new section 553-j to read as follows: S. 1509--C 250 A. 2009--C § 553-J. ADDITIONAL POWERS AND PROVISIONS IN RELATION TO CENTRAL BUSINESS DISTRICT TOLLING PROGRAM. 1. THE AUTHORITY SHALL ESTABLISH A FUND TO BE KNOWN AS THE CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCK- BOX FUND WHICH SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES OF THE AUTHORITY. THE FUND SHALL CONSIST OF ALL MONIES RECEIVED BY THE AUTHORITY PURSUANT TO ARTICLE FORTY-FOUR-C OF THE VEHICLE AND TRAFFIC LAW, SUBDIVISION TWELVE-A OF SECTION FIVE HUNDRED FIFTY-THREE OF THIS TITLE, AND REVENUES OF THE REAL ESTATE TRANSFER TAX DEPOSITED PURSUANT TO SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED TWEN- TY-ONE OF THE TAX LAW, AND SALES TAX PURSUANT TO SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FORTY-EIGHT OF THE TAX LAW, SUBPARAGRAPH (B) OF PARAGRAPH FIVE OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-ONE OF THE TAX LAW, AND FUNDS APPROPRIATED FROM THE CENTRAL BUSINESS DISTRICT TRUST FUND ESTABLISHED PURSUANT TO SECTION NINTY-NINE-FF OF THE STATE FINANCE LAW. 2. MONIES IN THE FUND SHALL BE APPLIED, SUBJECT TO AGREEMENTS WITH BONDHOLDERS AND APPLICABLE FEDERAL LAW, TO THE PAYMENT OF OPERATING, ADMINISTRATION, AND OTHER NECESSARY EXPENSES OF THE AUTHORITY, OR TO THE CITY OF NEW YORK SUBJECT TO THE MEMORANDUM OF UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF SECTION SEVENTEEN HUNDRED FOUR OF THE VEHICLE AND TRAFFIC LAW PROPERLY ALLOCABLE TO SUCH PROGRAM, INCLUDING THE PLANNING, DESIGNING, CONSTRUCTING, INSTALLING OR MAINTAINING OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM, INCLUDING, WITHOUT LIMITA- TION, THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE, THE CENTRAL BUSINESS DISTRICT TOLLING COLLECTION SYSTEM AND THE CENTRAL BUSINESS DISTRICT TOLLING CUSTOMER SERVICE CENTER, AND THE COSTS OF ANY METROPOL- ITAN TRANSPORTATION AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE 2020 TO 2024 MTA CAPITAL PROGRAM OR ANY SUCCESSOR PROGRAMS. MONIES IN THE FUND MAY BE: (A) PLEDGED BY THE AUTHORITY TO SECURE AND BE APPLIED TO THE PAYMENT OF THE BONDS, NOTES OR OTHER OBLIGATIONS OF THE AUTHORITY TO FINANCE THE COSTS OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM, INCLUDING, WITHOUT LIMITATION, THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE, THE CENTRAL BUSINESS DISTRICT TOLLING COLLECTION SYSTEM AND THE CENTRAL BUSINESS DISTRICT TOLLING CUSTOMER SERVICE CENTER, AND THE COSTS OF ANY METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE 2020 TO 2024 MTA CAPITAL PROGRAM OR ANY SUCCESSOR PROGRAMS, INCLUDING DEBT SERVICE, RESERVE REQUIREMENTS, IF ANY, THE PAYMENT OF AMOUNTS REQUIRED UNDER BOND AND NOTE FACILITIES OR AGREEMENTS RELATED THERETO, THE PAYMENT OF FEDERAL GOVERNMENT LOANS, SECURITY OR CREDIT ARRANGEMENTS OR OTHER AGREEMENTS RELATED THERETO; OR (B) USED BY THE AUTHORITY FOR THE PAYMENT OF SUCH CAPITAL COSTS OF THE CENTRAL BUSI- NESS DISTRICT TOLLING PROGRAM AND THE COSTS OF ANY METROPOLITAN TRANS- PORTATION AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE 2020 TO 2024 MTA CAPITAL PROGRAM OR ANY SUCCESSOR PROGRAMS; OR (C) TRANSFERRED TO THE METROPOLITAN TRANSPORTATION AUTHORITY AND (1) PLEDGED BY THE METROPOL- ITAN TRANSPORTATION AUTHORITY TO SECURE AND BE APPLIED TO THE PAYMENT OF THE BONDS, NOTES OR OTHER OBLIGATIONS OF THE METROPOLITAN TRANSPORTATION AUTHORITY TO FINANCE THE COSTS OF ANY METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE 2020 TO 2024 MTA CAPITAL PROGRAM OR ANY SUCCESSOR PROGRAMS, INCLUDING DEBT SERVICE, RESERVE REQUIREMENTS, IF ANY, THE PAYMENT OF AMOUNTS REQUIRED UNDER BOND AND NOTE FACILITIES OR AGREEMENTS RELATED THERETO, THE PAYMENT OF FEDERAL GOVERNMENT LOANS, SECURITY OR CREDIT ARRANGEMENTS OR OTHER AGREEMENTS RELATED THERETO, OR (2) USED BY THE METROPOLITAN TRANSPORTATION AUTHORI- TY FOR THE PAYMENT OF THE COSTS OF ANY METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE 2020 TO 2024 MTA CAPITAL S. 1509--C 251 A. 2009--C PROGRAM OR ANY SUCCESSOR PROGRAMS. SUCH REVENUES SHALL ONLY SUPPLEMENT AND SHALL NOT SUPPLANT ANY FEDERAL, STATE, OR LOCAL FUNDS EXPENDED BY THE AUTHORITY OR THE METROPOLITAN TRANSPORTATION AUTHORITY, OR SUCH AUTHORITY'S OR METROPOLITAN TRANSPORTATION AUTHORITY'S AFFILIATES OR SUBSIDIARIES FOR SUCH RESPECTIVE PURPOSES. CENTRAL BUSINESS DISTRICT TOLL REVENUES MAY BE USED AS REQUIRED TO OBTAIN, UTILIZE, OR MAINTAIN FEDERAL AUTHORIZATION TO COLLECT TOLLS ON FEDERAL AID HIGHWAYS. 3. ANY MONIES DEPOSITED IN THE FUND SHALL BE HELD IN THE FUND FREE AND CLEAR OF ANY CLAIM BY ANY PERSON ARISING OUT OF OR IN CONNECTION WITH ARTICLE FORTY-FOUR-C OF THE VEHICLE AND TRAFFIC LAW AND SUBDIVISION TWELVE-A OF SECTION FIVE HUNDRED FIFTY-THREE OF THIS TITLE. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, NO PERSON PAYING ANY AMOUNT THAT IS DEPOSITED INTO THE FUND SHALL HAVE ANY RIGHT OR CLAIM AGAINST THE AUTHORITY OR THE METROPOLITAN TRANSPORTATION AUTHORITY, ANY OF THEIR BONDHOLDERS, ANY OF THE AUTHORITY'S OR THE METROPOLITAN TRANSPORTATION AUTHORITY'S SUBSIDIARIES OR AFFILIATES TO ANY MONIES IN OR DISTRIBUTED FROM THE FUND OR IN RESPECT OF A REFUND, REBATE, CREDIT OR REIMBURSEMENT OF MONIES ARISING OUT OF OR IN CONNECTION WITH ARTICLE FORTY-FOUR-C OF THE VEHICLE AND TRAFFIC LAW AND SUBDIVISION TWELVE-A OF SECTION FIVE HUNDRED FIFTY-THREE OF THIS TITLE. 3-A. OF THE CAPITAL PROJECT COSTS PAID BY THIS FUND: EIGHTY PERCENT SHALL BE CAPITAL PROJECT COSTS OF THE NEW YORK CITY TRANSIT AUTHORITY AND ITS SUBSIDIARY, STATEN ISLAND RAPID TRANSIT OPERATING AUTHORITY, AND MTA BUS WITH PRIORITY GIVEN TO THE SUBWAY SYSTEM, NEW SIGNALING, NEW SUBWAY CARS, TRACK AND CAR REPAIR, ACCESSIBILITY, BUSES AND BUS SYSTEM IMPROVEMENTS AND FURTHER INVESTMENTS IN EXPANDING TRANSIT AVAILABILITY TO AREAS IN THE OUTER BOROUGHS THAT HAVE LIMITED MASS TRANSIT OPTIONS; TEN PERCENT SHALL BE CAPITAL PROJECT COSTS OF THE LONG ISLAND RAIL ROAD, INCLUDING BUT NOT LIMITED TO, PARKING FACILITIES, ROLLING STOCK, CAPACI- TY ENHANCEMENTS, ACCESSIBILITY, AND EXPANDING TRANSIT AVAILABILITY TO AREAS IN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT THAT HAVE LIMITED MASS TRANSIT OPTIONS; AND TEN PERCENT SHALL BE CAPITAL PROJECT COSTS OF THE METRO-NORTH COMMUTER RAILROAD COMPANY, INCLUDING BUT NOT LIMITED TO, PARKING FACILITIES, ROLLING STOCK, CAPACITY ENHANCEMENTS, ACCESSIBILITY, AND EXPANDING TRANSIT AVAILABILITY TO AREAS IN THE METRO- POLITAN COMMUTER TRANSPORTATION DISTRICT THAT HAVE LIMITED MASS TRANSIT OPTIONS. 4. THE AUTHORITY SHALL REPORT ANNUALLY ON ALL RECEIPTS AND EXPENDI- TURES OF THE FUND. THE REPORT SHALL DETAIL OPERATING EXPENSES OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM AND ALL FUND EXPENDITURES INCLUDING CAPITAL PROJECTS. THE REPORT SHALL BE READILY AVAILABLE TO THE PUBLIC, AND SHALL BE POSTED ON THE AUTHORITY'S WEBSITE AND BE SUBMITTED TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MAYOR AND COUNCIL OF THE CITY OF NEW YORK, THE METRO- POLITAN TRANSPORTATION AUTHORITY BOARD, AND THE METROPOLITAN TRANSPORTA- TION AUTHORITY CAPITAL PROGRAM REVIEW BOARD. 5. ANY OPERATING FUNDING USED FOR THE PURPOSES OF A CENTRAL BUSINESS DISTRICT TOLLING PROGRAM FROM THIS FUND SHALL BE APPROVED, ANNUALLY, IN A PLAN OF EXPENDITURES, BY THE DIRECTOR OF THE BUDGET. § 6. Intentionally omitted. § 7. Subdivision 2 of section 87 of the public officers law is amended by adding a new paragraph (p) to read as follows: (P) ARE DATA OR IMAGES PRODUCED BY AN ELECTRONIC TOLL COLLECTION SYSTEM UNDER AUTHORITY OF ARTICLE FORTY-FOUR-C OF THE VEHICLE AND TRAF- FIC LAW AND IN TITLE THREE OF ARTICLE THREE OF THE PUBLIC AUTHORITIES LAW. S. 1509--C 252 A. 2009--C § 8. The public authorities law is amended by adding a new section 553-k to read as follows: § 553-K. TRAFFIC MOBILITY REVIEW BOARD. 1. THE AUTHORITY'S BOARD SHALL ESTABLISH THE "TRAFFIC MOBILITY REVIEW" BOARD (BOARD), WHICH SHALL CONSIST OF A CHAIR AND FIVE MEMBERS, THAT SHALL BE MADE UP OF REGIONAL REPRESENTATION, ONE OF WHOM SHALL BE RECOMMENDED BY THE MAYOR OF THE CITY OF NEW YORK, ONE OF WHOM SHALL RESIDE IN THE METRO NORTH REGION, AND ONE OF WHOM SHALL RESIDE IN THE LONG ISLAND RAIL ROAD REGION. MEMBERS OF THE BOARD MUST HAVE EXPERIENCE IN AT LEAST ONE OF THE FOLLOW- ING AREAS: PUBLIC FINANCE; TRANSPORTATION; MASS TRANSIT; OR MANAGEMENT. THE CHAIR AND THE MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE AUTHOR- ITY. 2. THE BOARD SHALL MAKE A RECOMMENDATION REGARDING THE CENTRAL BUSI- NESS DISTRICT TOLL AMOUNTS TO BE ESTABLISHED PURSUANT TO ARTICLE FORTY- FOUR-C OF THE VEHICLE AND TRAFFIC LAW, WHICH SHALL INCLUDE A VARIABLE- PRICING STRUCTURE, NO SOONER THAN NOVEMBER FIFTEENTH, TWO THOUSAND TWENTY AND NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY, OR NO LATER THAN THIRTY DAYS BEFORE A CENTRAL BUSINESS DISTRICT TOLLING PROGRAM IS INITIATED, WHICHEVER IS LATER. SUCH RECOMMENDATION SHALL BE SUBMITTED TO THE BOARD OF THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY FOR CONSIDERATION BEFORE THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY BOARD MAY APPROVE CENTRAL BUSINESS DISTRICT TOLL AMOUNTS THAT MAY BE ESTAB- LISHED AND ADOPTED. 3. FOR PURPOSES OF RECOMMENDING A CENTRAL BUSINESS DISTRICT TOLL OR TOLLS IN ADDITION TO THE GOAL OF REDUCING TRAFFIC WITHIN THE CENTRAL BUSINESS DISTRICT, THE BOARD SHALL, AT MINIMUM, ENSURE THAT ANNUAL REVENUES AND FEES COLLECTED UNDER SUCH PROGRAM, LESS COSTS OF SUCH PROGRAM, PROVIDE FOR REVENUES INTO THE CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCKBOX FUND, ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED FIFTY-THREE-J OF THIS CHAPTER, NECESSARY TO FUND FIFTEEN BILLION DOLLARS FOR CAPITAL PROJECTS FOR THE 2020 TO 2024 CAPITAL PROGRAM, AND ANY ADDI- TIONAL REVENUES ABOVE THAT AMOUNT TO BE AVAILABLE FOR ANY SUCCESSOR PROGRAM. THE BOARD SHALL CONSIDER FOR PURPOSES OF ITS RECOMMENDATIONS, FACTORS INCLUDING BUT NOT LIMITED TO, TRAFFIC PATTERNS, TRAFFIC MITI- GATION MEASURES, OPERATING COSTS, PUBLIC IMPACT, PUBLIC SAFETY, HARD- SHIPS, VEHICLE TYPE, DISCOUNTS FOR MOTORCYCLES, PEAK AND OFF-PEAK RATES AND ENVIRONMENTAL IMPACTS, INCLUDING BUT NOT LIMITED TO AIR QUALITY AND EMISSIONS TRENDS. THE BOARD SHALL RECOMMEND A PLAN FOR CREDITS, DISCOUNTS, AND/OR EXEMPTIONS FOR TOLLS PAID ON BRIDGES AND CROSSINGS WHICH SHALL BE INFORMED BY A TRAFFIC STUDY ASSOCIATED WITH THE IMPACT OF ANY SUCH CREDITS, DISCOUNTS AND/OR EXEMPTIONS ON THE RECOMMENDED TOLL. THE BOARD SHALL RECOMMEND A PLAN FOR CREDITS, DISCOUNTS, AND/OR EXEMPTIONS FOR FOR-HIRE VEHICLES DEFINED, AND SUBJECT TO A SURCHARGE IMPOSED BY, ARTICLE TWENTY-NINE-C OF THE TAX LAW FOR A FOR-HIRE TRANS- PORTATION TRIP BASED ON FACTORS INCLUDING, BUT NOT LIMITED TO, INITIAL MARKET ENTRY COSTS ASSOCIATED WITH LICENSING AND REGULATION, COMPARATIVE CONTRIBUTION TO CONGESTION IN THE CENTRAL BUSINESS DISTRICT, AND GENERAL INDUSTRY IMPACT. THE BOARD SHALL PRODUCE A DETAILED REPORT THAT PROVIDES INFORMATION REGARDING THE BOARD'S REVIEW AND ANALYSIS FOR PURPOSES OF ESTABLISHING ITS RECOMMENDATIONS, INCLUDING BUT NOT LIMITED TO, ALL OF THE CONSIDERATIONS REFERRED TO IN THIS SUBDIVISION. THE BOARD SHALL NOT RECOMMEND A TOLL THAT PROVIDES FOR CHARGING PASSENGER VEHICLES REGISTERED PURSUANT TO SUBDIVISION SIX OF SECTION FOUR HUNDRED ONE OF THE VEHICLE AND TRAFFIC LAW MORE THAN ONCE PER DAY. 4. THE AUTHORITY, ITS SUBSIDIARIES, AFFILIATES, AND SUBSIDIARIES OF AFFILIATES, THE CITY OF NEW YORK, AND ANY STATE AGENCY OR AUTHORITY S. 1509--C 253 A. 2009--C SHALL PROVIDE ANY ASSISTANCE NECESSARY TO ASSIST IN THE COMPLETION OF THE BOARD'S WORK AND PROMPTLY RESPOND TO ANY REQUESTS FOR INFORMATION OR CONSULTATION CONSISTENT WITH THE PURPOSES OF THIS SECTION. 5. THE METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PLAN SHALL BE REVIEWED BY THE TRAFFIC MOBILITY REVIEW BOARD. 6. MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION. § 9. The city of New York shall study the impact of central business district tolling on parking within and around the central business district. Such study shall be completed eighteen months from the date of the central business district tolling program going into effect, and shall be provided to the temporary president of the senate, the speaker of the assembly and the Governor. § 10. The Triborough bridge and tunnel authority and the city depart- ment of transportation shall complete a traffic study that includes the central business district established pursuant to article 44-C of the vehicle and traffic law, and areas surrounding such district, that shall be provided to the traffic mobility review board for purposes of allow- ing such board to make recommendations consistent with section 553-k of the public authorities law. § 11. The Triborough bridge and tunnel authority shall engage in a public information campaign a minimum of 60 days before the tolling program goes into effect to ensure commuters have appropriate notice and understanding of the operation and tolling process of the central busi- ness district tolling program. § 12. Section 566-a of the public authorities law, as added by chapter 874 of the laws of 1939, subdivision 1 as amended by chapter 35 of the laws of 1979, is amended to read as follows: § 566-a. Tax contract by the state. 1. It is hereby found, determined and declared that the authority and the carrying out of its corporate purposes is in all respects for the benefit of the people of the state of New York, for the improvement of their health, welfare and prosper- ity, and, in the case of some of the said purposes, for the promotion of their traffic, and that said purposes are public purposes and, in the case of those purposes which consist of vehicular bridges, vehicular tunnels and approaches thereto AND THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM, the project is an essential part of the public highway system and the authority will be performing an essential governmental function in the exercise of the powers conferred by this title, and the state of New York covenants with the purchasers and with all subsequent holders and transferees of bonds issued after January first, nineteen hundred thirty-nine by the authority pursuant to this title, in consideration of the acceptance of any payment for the bonds that the bonds of the authority issued after January first, nineteen hundred thirty-nine pursuant to this title and the income therefrom, and all moneys, funds, tolls and other revenues pledged to pay or secure the payment of such bonds, shall at all times be free from taxation except for estate taxes and taxes on transfers by or in contemplation of death. 2. Nothing herein shall be construed to repeal or supersede any tax exemptions heretofore or hereafter granted by general or other laws. § 13. Severability clause. If any clause, sentence, paragraph, subdi- vision, section or part of this act shall be adjudged by a 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 S. 1509--C 254 A. 2009--C the legislature that this act would have been enacted even if such invalid provision had not been included herein. § 14. This act shall take effect immediately. SUBPART B Section 1. The public authorities law is amended by adding a new section 1279-e to read as follows: § 1279-E. ASSIGNMENT, TRANSFER, SHARING OR CONSOLIDATING POWERS, FUNC- TIONS OR ACTIVITIES. 1. (A) NOTWITHSTANDING ANY PROVISION OF THIS TITLE OR ANY OTHER PROVISION OF LAW, GENERAL, SPECIAL OR LOCAL, THE AUTHORITY SHALL DEVELOP AND COMPLETE A PERSONNEL AND REORGANIZATION PLAN NO LATER THAN JUNE THIRTIETH, TWO THOUSAND NINETEEN WHICH SHALL, IN WHOLE OR IN PART, ASSIGN, TRANSFER, SHARE, OR CONSOLIDATE ANY ONE OR MORE OF ITS POWERS, DUTIES, FUNCTIONS OR ACTIVITIES OR ANY DEPARTMENT, DIVISION OR OFFICE ESTABLISHED THEREWITH, OR ANY OF THOSE OF ITS SUBSIDIARIES, OR AFFILIATES OR THEIR SUBSIDIARIES, WITHIN OR BETWEEN ITSELF, ITS SUBSID- IARIES OR AFFILIATES OR THEIR SUBSIDIARIES, INCLUDING, BUT NOT LIMITED TO THE NEW YORK CITY TRANSIT AUTHORITY, THE LONG ISLAND RAIL ROAD, THE METRO NORTH COMMUTER RAILROAD COMPANY, MTA CAPITAL CONSTRUCTION, MTA NEW YORK CITY BUS, TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY, AND THE MTA STATEN ISLAND RAILWAY, IN A MANNER CONSISTENT WITH THE PROVISIONS OF THIS SECTION. SUCH PLAN SHALL IDENTIFY COMMON FUNCTIONS AND ASSIGN, TRANSFER, SHARE OR CONSOLIDATE, IN WHOLE OR IN PART, SUCH FUNCTIONS BETWEEN THE AUTHORITY AND ITS SUBSIDIARIES, AFFILIATES AND SUBSIDIARIES OF AFFILIATES AND SHALL BE ACCOMPANIED BY AN INDEPENDENT EVALUATION OF EXISTING PERSONNEL WITHIN OR BETWEEN ITSELF, ITS SUBSIDIARIES, OR AFFIL- IATES OR THEIR SUBSIDIARIES IN COORDINATION WITH THE AUTHORITY'S SENIOR MANAGEMENT. (B) UPON RECEIPT OF THE REVIEW PURSUANT TO SECTION TWELVE HUNDRED SEVENTY-NINE-F OF THIS TITLE THE AUTHORITY SHALL REVISE THE REORGANIZA- TION PLAN TO CONSIDER AND INCORPORATE THE FINDINGS OF SUCH REVIEW WITHIN NINETY DAYS OF RECEIPT. 2. SUCH ASSIGNMENT, TRANSFER, SHARING, OR CONSOLIDATION PURSUANT TO THIS SECTION SHALL OCCUR ONLY IF APPROVED BY RESOLUTION OF THE BOARD OF THE AUTHORITY, SERVING ON BEHALF OF THE AUTHORITY AND ANY AFFECTED SUBSIDIARY OR AFFILIATE OR THEIR SUBSIDIARY, ADOPTED BY NOT LESS THAN A MAJORITY VOTE OF THE WHOLE NUMBER OF MEMBERS OF THE AUTHORITY THEN IN OFFICE, WITH THE CHAIRMAN HAVING ONE ADDITIONAL VOTE IN THE EVENT OF A TIE VOTE. 3. PURSUANT TO THIS SECTION, ANY SUCH ASSIGNING, TRANSFERRING, SHAR- ING, OR CONSOLIDATING OF POWERS, DUTIES, FUNCTIONS OR ACTIVITIES SHALL NOT BE AUTHORIZED WHERE IT WOULD IMPAIR ANY RIGHTS AND REMEDIES OF ANY HOLDERS OF NOTES, BONDS OR OTHER OBLIGATIONS ISSUED BY THE AUTHORITY, ITS SUBSIDIARIES, OR AFFILIATES OR THEIR SUBSIDIARIES. NOTHING SET FORTH IN THIS SECTION SHALL BE CONSTRUED TO IMPEDE, INFRINGE OR DIMINISH THE RIGHTS AND BENEFITS THAT ACCRUE TO EMPLOYEES AND EMPLOYERS THROUGH COLLECTIVE BARGAINING AGREEMENTS, OR IMPACT OR CHANGE AN EMPLOYEE'S MEMBERSHIP IN A BARGAINING UNIT. 4. NO CONSOLIDATION SHALL RESULT IN THE COMPLETE DISSOLUTION OR MERGER WITHIN OR BETWEEN THE AUTHORITY OR ITS SUBSIDIARIES, AFFILIATES OR THEIR SUBSIDIARIES. § 2. Subdivision 1 of section 1264 of the public authorities law, as amended by chapter 717 of the laws of 1967, is amended to read as follows: S. 1509--C 255 A. 2009--C 1. The purposes of the authority shall be the continuance, further development and improvement of commuter transportation and other services related thereto within the metropolitan commuter transportation district, including but not limited to such transportation by railroad, omnibus, marine and air, in accordance with the provisions of this title. It shall be the further purpose of the authority, consistent with its status as the ex officio board of both the New York city transit authority and the triborough bridge and tunnel authority, to develop and implement a unified mass transportation policy for such district IN AN EFFICIENT AND COST-EFFECTIVE MANNER THAT INCLUDES THE USE OF DESIGN- BUILD CONTRACTING ON ALL PROJECTS OVER TWENTY-FIVE MILLION DOLLARS IN COST EXCEPT WHERE A WAIVER IS GRANTED BY THE NEW YORK STATE BUDGET DIRECTOR PURSUANT TO A REQUEST IN WRITING FROM THE METROPOLITAN TRANS- PORTATION AUTHORITY. FOR PURPOSES OF GRANTING A WAIVER PURSUANT TO THIS SECTION, SUCH REVIEW SHALL CONSIDER WHETHER THE DESIGN BUILD CONTRACTING METHOD IS APPROPRIATE FOR THE PROJECT THAT SUCH WAIVER IS SOUGHT FOR, AND THE AMOUNT OF SAVINGS AND EFFICIENCIES THAT COULD BE ACHIEVED USING SUCH METHOD. THE DETERMINATION FOR SUCH WAIVER SHALL BE MADE IN WRITING WITHIN FORTY-FIVE DAYS FROM REQUEST OR SHALL BE DEEMED GRANTED. § 3. Subdivision 1 of section 1263 of the public authorities law is amended by adding a new paragraph (c) to read as follows: (C) (I) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION, THE TERM OF ANY MEMBER SHALL EXPIRE UPON THE EXPIRATION OF THE TERM IN OFFICE BEING SERVED BY THE COUNTY ELECTED OFFICIAL UPON WHOSE RECOMMEN- DATION THEY WERE APPOINTED; PROVIDED, HOWEVER, THAT IN SUCH CIRCUMSTANCE SUCH MEMBER MAY SERVE AS A HOLDOVER APPOINTEE FOR SIXTY DAYS, OR UNTIL SUCH TIME AS A NEW MEMBER IS APPOINTED, WHICHEVER IS LESS. THE TERM OF ANY MEMBER APPOINTED TO REPLACE SUCH A HOLDOVER APPOINTEE SHALL EXPIRE AT THE END OF THE TERM IN OFFICE OF THE COUNTY ELECTED OFFICIAL UPON WHOSE RECOMMENDATION SUCH MEMBER WAS APPOINTED. IF A COUNTY ELECTED OFFICIAL LEAVES OFFICE BECAUSE OF DEATH, RESIGNATION, REMOVAL OR DISA- BILITY, HOWEVER, A MEMBER APPOINTED UPON SUCH OFFICIAL'S RECOMMENDATION SHALL CONTINUE TO SERVE UNTIL SUCH TIME AS SUCH COUNTY ELECTED OFFICE IS FILLED, AT WHICH TIME SUCH MEMBER WILL BECOME A HOLDOVER APPOINTEE AND MAY SERVE FOR SIXTY DAYS, OR UNTIL SUCH TIME AS A NEW MEMBER IS APPOINTED, WHICHEVER IS LESS. (II) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION, THE TERM OF ANY CHAIRMAN OR ANY MEMBER SHALL EXPIRE UPON THE EXPIRATION OF THE TERM IN OFFICE BEING SERVED BY THE CITY OR STATE ELECTED OFFICIAL UPON WHOSE RECOMMENDATION THEY WERE APPOINTED; PROVIDED, HOWEVER, THAT IN SUCH CIRCUMSTANCE THE CHAIRMAN OR SUCH MEMBER MAY SERVE AS A HOLDOVER APPOINTEE UNTIL SUCH TIME AS A NEW CHAIRMAN OR MEMBER IS APPOINTED. THE TERM OF ANY CHAIRMAN OR MEMBER APPOINTED TO REPLACE SUCH A HOLDOVER APPOINTEE SHALL EXPIRE AT THE END OF THE TERM IN OFFICE OF THE CITY OR STATE ELECTED OFFICIAL UPON WHOSE RECOMMENDATION SUCH CHAIRMAN OR MEMBER WAS APPOINTED. § 4. The public authorities law is amended by adding a new section 1279-f to read as follows: § 1279-F. INDEPENDENT FORENSIC AUDIT. 1. THE AUTHORITY SHALL CONTRACT WITH A CERTIFIED PUBLIC ACCOUNTING FIRM FOR THE PROVISION OF AN INDE- PENDENT, COMPREHENSIVE, FORENSIC AUDIT OF THE AUTHORITY. SUCH AUDIT SHALL BE PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS. SUCH AUDIT SHALL INCLUDE, BUT IS NOT LIMITED TO A COMPLETE AND THOROUGH EXAMINATION AND DETAILED ACCOUNTING OF THE AUTHOR- ITY'S CAPITAL ELEMENTS, BROKEN DOWN BY AGENCY, INCLUDING BUT NOT LIMITED TO: ROLLING STOCK AND OMNIBUSES, PASSENGER STATIONS, TRACK, LINE EQUIP- S. 1509--C 256 A. 2009--C MENT, LINE STRUCTURES, SIGNALS AND COMMUNICATIONS, POWER EQUIPMENT, EMERGENCY POWER EQUIPMENT AND SUBSTATIONS, SHOPS, YARDS, MAINTENANCE FACILITIES, DEPOTS AND TERMINALS, SERVICE VEHICLES, SECURITY SYSTEMS, ELECTRIFICATION EXTENSIONS, AND UNSPECIFIED, MISCELLANEOUS AND EMERGEN- CY. THE AUTHORITY SHALL ALSO CONTRACT WITH A FINANCIAL ADVISORY FIRM WITH A NATIONAL PRACTICE FOR THE PROVISIONS OF A REVIEW OF: (A) ANY FRAUD, WASTE, ABUSE, OR CONFLICTS OR INTEREST OCCURRING WITHIN ANY DEPARTMENT, DIVISION, OR OFFICE OF THE AUTHORITY, ITS SUBSIDIARIES, AFFILIATES, AND SUBSIDIARIES OF AFFILIATES; (B) ANY DUPLICATION OF FUNCTIONS OR DUTIES BETWEEN THE DEPARTMENTS, DIVISIONS OR OFFICE OF THE AUTHORITY, ITS SUBSIDIARIES, AFFILIATES, AND SUBSIDIARIES OF AFFILIATES; (C) OPTIONS FOR POTENTIAL COST EFFICIENCIES AND SAVINGS THAT COULD BE ACHIEVED THROUGH CHANGES IN INTERNAL CONTROLS AND MANAGEMENT REFORMS, FUNCTIONAL AND PROCESS STREAMLINING, INTERNAL PROCUREMENT PROCESS REFORMS; (D) THE TWO THOUSAND FIFTEEN TO TWO THOUSAND NINETEEN CAPITAL PLAN FOR COST OVERAGES AND DUPLICATION; (E) THE DEVELOPMENT OF STANDARDIZED PERFORM- ANCE METRICS FOR PLANNING, DESIGN, APPROVALS, CHANGE ORDERS, PROJECT MANAGEMENT AND DELIVERY; AND (F) CASH FLOW AND ACCOUNTING OF EXPENDI- TURES OF THE AUTHORITY, ITS SUBSIDIARIES, AFFILIATES, AND SUBSIDIARIES OF AFFILIATES FOR THE PRECEDING THREE FISCAL YEARS. 2. SUCH AUDIT SHALL BE COMPLETED AND SUBMITTED TO THE BOARD NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY AND POSTED PUBLICLY ON THE AUTHORITY'S WEBSITE WITHIN THIRTY DAYS OF SUBMISSION TO THE BOARD. SUCH REVIEWS SHALL BE COMPLETED AND SUBMITTED TO THE BOARD NO LATER THAN JULY THIRTY-FIRST, TWO THOUSAND NINETEEN AND POSTED PUBLICLY ON THE AUTHORI- TY'S WEBSITE WITHIN THIRTY DAYS OF SUBMISSION TO THE BOARD. 3. THE CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM PROVIDING THE AUTHORITY'S INDEPENDENT, COMPREHENSIVE, FORENSIC AUDIT SHALL ADHERE TO THE REQUIREMENTS IN PARAGRAPHS (A), (B) AND (C) OF THIS SUBDIVISION; PROVIDED, HOWEVER, THE AUTHORITY MAY CONTRACT WITH AN ACCOUNTING FIRM NOTWITHSTANDING PARAGRAPHS (A), (B) AND (C) OF THIS SUBDIVISION AND NOTWITHSTANDING SECTION TWELVE HUNDRED SEVENTY-SIX-C OF THIS TITLE UPON A WRITTEN DETERMINATION BY THE BOARD OF THE AUTHORITY WHICH SHALL DETAIL THAT SUCH ACCOUNTING FIRM WAS AWARDED SUCH CONTRACT ON THE BASIS THAT NO ACCOUNTING FIRM MEETS THE REQUIREMENTS SET FORTH IN PARAGRAPHS (A), (B) AND (C) OF THIS SUBDIVISION. (A) SUCH CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM SHALL BE PROHIB- ITED FROM PROVIDING AUDIT SERVICES TO THE AUTHORITY IF THE AUDIT PARTNER HAVING PRIMARY RESPONSIBILITY FOR THE AUDIT OR THE AUDIT PARTNER RESPON- SIBLE FOR REVIEWING THE AUDIT HAS PERFORMED AUDIT SERVICES FOR THE AUTHORITY IN ANY OF THE FIVE PREVIOUS FISCAL YEARS OF THE AUTHORITY. (B) SUCH CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM SHALL BE PROHIB- ITED FROM PERFORMING ANY NON-AUDIT SERVICES TO THE AUTHORITY CONTEMPORA- NEOUSLY WITH THE AUDIT, INCLUDING: (1) BOOKKEEPING OR OTHER SERVICES RELATED TO THE ACCOUNTING RECORDS OR FINANCIAL STATEMENTS OF SUCH AUTHORITY; (2) FINANCIAL INFORMATION SYSTEMS DESIGN AND IMPLEMENTATION; (3) APPRAISAL OR VALUATION SERVICES, FAIRNESS OPINIONS, OR CONTRIBU- TION-IN-KIND REPORTS; (4) ACTUARIAL SERVICES; (5) INTERNAL AUDIT OUTSOURCING SERVICES; (6) MANAGEMENT FUNCTIONS OR HUMAN SERVICES; (7) BROKER OR DEALER, INVESTMENT ADVISOR, OR INVESTMENT BANKING SERVICES; AND (8) LEGAL SERVICES AND EXPERT SERVICES UNRELATED TO THE AUDIT. (C) SUCH CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM SHALL BE PROHIB- ITED FROM PROVIDING AUDIT SERVICES TO THE AUTHORITY IF AN EMPLOYEE ASSIGNED TO THE AUDIT HAS PERFORMED AUDIT SERVICES FOR THE AUTHORITY OR S. 1509--C 257 A. 2009--C HAS BEEN EMPLOYED BY THE AUTHORITY IN ANY OF THE THREE PREVIOUS FISCAL YEARS OF THE AUTHORITY. § 5. The public authorities law is amended by adding a new section 1279-g to read as follows: § 1279-G. MAJOR CONSTRUCTION REVIEW UNIT. THE AUTHORITY SHALL ESTAB- LISH THE MAJOR CONSTRUCTION REVIEW UNIT WITHIN THE AUTHORITY THAT SHALL CONSIST OF A PANEL OF INTERNAL AND EXTERNAL EXPERTS APPOINTED BY THE BOARD. PANEL MEMBERS SHALL HAVE EXTENSIVE BACKGROUND OR EXECUTIVE EXPE- RIENCE IN AT LEAST ONE OF THE FOLLOWING AREAS: ENGINEERING; DESIGN; CONSTRUCTION; OR, PROJECT MANAGEMENT. THE MAJOR CONSTRUCTION REVIEW UNIT SHALL REVIEW ALL LARGE SCALE PROJECTS OF THE AUTHORITY, ITS SUBSID- IARIES, AFFILIATES AND THE SUBSIDIARIES OF ITS AFFILIATES BEFORE AWARD AND SHALL ALSO REVIEW ANY PLANS INVOLVING SIGNAL SYSTEM UPGRADES, INCLUDING, BUT NOT LIMITED TO THE USE OF COMMUNICATIONS BASED TRAIN CONTROL AND ULTRA-WIDEBAND TECHNOLOGY FOR USE WITHIN THE NEW YORK CITY SUBWAY SYSTEM BEFORE THEY SHALL BE IMPLEMENTED. THE REVIEW OF ANY PROJECT OR SYSTEM UPGRADE REFERRED TO THE REVIEW UNIT SHALL BE COMPLETED WITHIN THIRTY DAYS FROM THE SUBMISSION OF SUCH PROJECT OR SYSTEM TO THE REVIEW UNIT. § 6. Subdivision 3 of section 1269-b of the public authorities law, as added by chapter 314 of the laws of 1981, the opening paragraph as amended by chapter 637 of the laws of 1996, is amended to read as follows: 3. A plan may only be approved in two ways: (i) a plan shall only be approved by the board by a unanimous vote of the members entitled to vote thereon and within ninety days or by September fifteenth, nineteen hundred ninety-six in the case of a plan submitted during the period described in paragraph (b) of subdivision one of this section, of the submission of a plan the metropolitan transportation authority capital program review board may notify the authority of its approval of the same; or (ii) if the plan is not approved by the board within such nine- ty day period or by September fifteenth, nineteen hundred ninety-six, as the case may be, and no individual member of the board who is entitled to vote thereon has notified the authority in writing of his OR HER disapproval WITH A WRITTEN EXPLANATION OF SUCH DISAPPROVAL INCLUDING SPECIFIC ASPECTS OF THE PLAN THAT ARE OF CONCERN AND WHAT STEPS COULD BE TAKEN TO ADDRESS SUCH CONCERNS within such period, the plan shall be deemed to have been approved. UPON THE RECEIPT OF A WRITTEN DISAPPROVAL, THE AUTHORITY SHALL BE PROVIDED AN OPPORTUNITY TO RESPOND IN WRITING WITHIN TEN DAYS OF THE RECEIPT OF SUCH DISAPPROVAL. UPON THE RECEIPT OF SUCH RESPONSE, THE DISAPPROVING MEMBER SHALL HAVE TEN DAYS TO RECONSIDER AND WITHDRAW SUCH WRITTEN DISAPPROVAL. If the plan is not approved, the authority may thereafter reformulate and resubmit such plan at any time. Within thirty days of the submission of such reformulated plan the board may notify the authority of its approval of the same by the unanimous vote of the members entitled to vote thereon, or, if the reformulated plan is not approved and no indi- vidual member of the board who is entitled to vote on such reformulated plan has notified the authority in writing of his OR HER disapproval within such period, the reformulated plan shall be deemed to have been approved. § 7. Subdivision 7-a of section 553 of the public authorities law, as added by chapter 1033 of the laws of 1970, is amended to read as follows: 7-a. Notwithstanding any inconsistent provision of law, the bridge and tunnel officers employed by the authority shall have the power to issue S. 1509--C 258 A. 2009--C simplified traffic informations for traffic infractions as defined in section one hundred fifty-five of the vehicle and traffic law, committed on the sites owned, operated and maintained by the triborough bridge and tunnel authority, such informations to be administered pursuant to the provisions of title A of chapter forty of the administrative code of the city of New York or article two-A of the vehicle and traffic law, as applicable AND ALSO SHALL HAVE THE POWER TO ISSUE NOTICES OF VIOLATION FOR TRANSIT INFRACTIONS COMMITTED IN AND ABOUT ANY OR ALL OF THE FACILI- TIES, EQUIPMENT OR REAL PROPERTY OWNED, OCCUPIED OR OPERATED BY THE METROPOLITAN TRANSPORTATION AUTHORITY OR ITS SUBSIDIARIES AND THE NEW YORK CITY TRANSIT AUTHORITY AND ITS SUBSIDIARIES, AS PROVIDED AND IN ACCORDANCE WITH SECTION TWELVE HUNDRED NINE-A OF THIS CHAPTER. NOTHING SET FORTH IN THIS SUBDIVISION SHALL BE CONSTRUED TO IMPEDE, INFRINGE OR DIMINISH THE RIGHTS AND BENEFITS THAT ACCRUE TO EMPLOYEES AND EMPLOYERS THROUGH COLLECTIVE BARGAINING AGREEMENTS, OR IMPACT OR CHANGE AN EMPLOY- EE'S MEMBERSHIP IN A BARGAINING UNIT. § 8. The public authorities law is amended by adding a new section 1279-h to read as follows: § 1279-H. DEBARMENT. THE AUTHORITY SHALL ESTABLISH, PURSUANT TO REGU- LATION, A DEBARMENT PROCESS FOR CONTRACTORS OF THE AUTHORITY THAT PROHIBITS SUCH CONTRACTORS FROM BIDDING ON FUTURE CONTRACTS, AFTER A DEBARMENT DETERMINATION BY SUCH AUTHORITY, FOR A PERIOD OF FIVE YEARS FROM SUCH DETERMINATION. SUCH REGULATIONS MUST ENSURE NOTICE AND AN OPPORTUNITY TO BE HEARD BEFORE SUCH DEBARMENT DETERMINATION AND PROVIDE AS A DEFENSE ACTS SUCH AS FORCE MAJEURE. SUCH REGULATIONS SHALL ONLY PROVIDE FOR A DEBARMENT IN SITUATIONS INVOLVING A CONTRACTOR'S FAILURE TO SUBSTANTIALLY COMPLETE THE WORK WITHIN THE TIME FRAME SET FORTH IN THE CONTRACT, OR IN ANY SUBSEQUENT CHANGE ORDER, BY MORE THAN TEN PERCENT OF THE CONTRACT TERM; OR WHERE A CONTRACTOR'S DISPUTED WORK EXCEEDS TEN PERCENT OR MORE OF THE TOTAL CONTRACT COST WHERE CLAIMED COSTS ARE DEEMED TO BE INVALID PURSUANT BY THE CONTRACTUAL DISPUTE RESOLUTION PROCESS. § 9. Paragraph (b) of subdivision 1 of section 1263 of the public authorities law, as amended by chapter 727 of the laws of 1979, is amended to read as follows: (b) Vacancies occurring otherwise than by expiration of term shall be filled in the same manner as original appointments for the balance of the unexpired term, PROVIDED, HOWEVER, THAT IN THE EVENT OF A VACANCY CAUSED BY THE DEATH, RESIGNATION, REMOVAL, OR DISABILITY OF THE CHAIR- MAN, THE VACANCY SHALL BE FILLED BY THE GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF THE SENATE FOR THE UNEXPIRED TERM. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE GOVERNOR SHALL DESIGNATE AN ACTING CHAIRMAN FOR A PERIOD NOT TO EXCEED SIX MONTHS OR UNTIL A SUCCES- SOR CHAIRMAN HAS BEEN CONFIRMED BY THE SENATE, WHICHEVER COMES FIRST. UPON THE EXPIRATION OF THE SIX-MONTH TERM, IF THE GOVERNOR HAS NOMINATED A SUCCESSOR CHAIRMAN, BUT THE SENATE HAS NOT ACTED UPON THE NOMINATION, THE ACTING CHAIR CAN CONTINUE TO SERVE AS ACTING CHAIR FOR AN ADDITIONAL NINETY DAYS OR UNTIL THE GOVERNOR'S SUCCESSOR CHAIR NOMINATION IS CONFIRMED BY THE SENATE, WHICHEVER COMES FIRST. § 10. The public authorities law is amended by adding a new section 1279-l to read as follows: § 1279-L. RIGHT TO SHARE EMPLOYEES. 1. IT IS HEREBY FOUND AND DECLARED TO BE NECESSARY AND PROPER TO AUTHORIZE THE AUTHORITY, ITS SUBSIDIARIES, AFFILIATES, AND SUBSIDIARIES OF AFFILIATES, POWERS TO EFFECTUATE AND ENSURE SUCH ENTITIES CONTINUED FINANCIAL VIABILITY, WHICH IS AT ISSUE GIVEN SIZABLE OPERATING DEFICITS AND SIGNIFICANT CAPITAL NEEDS. ALLOWING S. 1509--C 259 A. 2009--C WHOLESALE INTERNAL MANAGEMENT REFORMS WILL CREATE SAVINGS, COMBAT ENTRENCHED BUREAUCRACIES, CREATE STREAMLINED, UNIFORM, AND EFFICIENT SERVICES, ENSURE PUBLIC ACCOUNTABILITY AND REESTABLISH PUBLIC TRUST. IN ORDER TO FACILITATE THESE NECESSARY GOALS IT IS BOTH REASONABLE AND A LEGITIMATE PUBLIC PURPOSE TO PROVIDE SYSTEMATIC AUTHORITY FOR THE SHAR- ING OF EMPLOYEES WITHIN AND BETWEEN THE RESPECTIVE ENTITIES. 2. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE AUTHORI- TY, ITS SUBSIDIARIES, AFFILIATES, AND SUBSIDIARIES OF AFFILIATES SHALL EACH HAVE THE RIGHT TO SHARE EMPLOYEES WITHIN AND BETWEEN SUCH ENTITIES AND TO ASSIGN SUCH EMPLOYEES TO PERFORM ANY OPERATION OR FUNCTION SUBJECT ONLY TO A DETERMINATION THAT THEY ARE SUBSTANTIALLY SIMILAR TO ANY OPERATION OR FUNCTION CURRENTLY PERFORMED. SUBSTANTIALLY SIMILAR OPERATION OR FUNCTION SHALL BE DETERMINED EXCLUSIVELY BY THE AUTHORITY. 3. NOTHING SET FORTH IN THIS SUBDIVISION SHALL BE CONSTRUED TO IMPEDE, INFRINGE OR DIMINISH THE RIGHTS AND BENEFITS THAT ACCRUE TO EMPLOYEES AND EMPLOYERS THROUGH COLLECTIVE BARGAINING AGREEMENTS, OR IMPACT OR CHANGE AN EMPLOYEE'S MEMBERSHIP IN A BARGAINING UNIT. § 11. The metropolitan transportation authority shall, in consultation with the governor, the mayor of the city of New York, and the district attorneys from the respective boroughs, establish a plan to combat fare evasion. Such plan shall include enforcement strategies, station design modifications, recommended sanctions, and other actions as deemed neces- sary and proper. Such plan shall be completed no later than the thirti- eth of June two thousand nineteen. § 12. For purposes of an independent review of the project commonly referred to as "East Side Access", the metropolitan transportation authority shall establish an outside expert advisory group to review such project and make recommendations to accelerate its completion. Such outside experts shall include members of the outside independent review team established to review the project commonly referred to as the "L-train project". Such review shall be completed as soon as practi- cable for consideration by the metropolitan transportation authority board. § 13. The 2020-2024 Metropolitan Transportation Authority capital plan shall include an amount set-aside for transportation capital improve- ments for the subway system, bus system and commuter railroads, includ- ing, but not limited to, investments in the subway system, new signal- ing, new subway cars, rolling stock, track and car repair, accessibility, buses and bus system improvements, parking facilities and further investments in expanding transit availability to areas in the outer boroughs and suburbs that have limited mass transit options subject to a Memorandum of Understanding entered into by the Secretary of the Senate Finance Committee, the Secretary of the Assembly Committee on Ways and Means, and the Director of the Budget. Such Memorandum of Understanding shall be entered into not more than ninety days after approval of the 2020-2024 Metropolitan Transportation Authority capital plan by the Metropolitan Transportation Authority Capital Program Review Board, established pursuant to section twelve hundred sixty-nine-a of the public authorities law. § 14. This act shall take effect immediately. SUBPART C Section 1. Subdivision 6 of section 1209 of the public authorities law, as amended by chapter 30 of the laws of 2015, is amended to read as follows: S. 1509--C 260 A. 2009--C 6. The provisions of subdivisions one, two, three and four of this section shall not be applicable to any procurement by the authority commenced during the period from the effective date of this subdivision until December thirty-first, nineteen hundred ninety-one or during the period from December sixteenth, nineteen hundred ninety-three until June thirtieth, two thousand [nineteen] TWENTY-THREE; and the provisions of subdivisions seven, eight, nine, ten, eleven, twelve and thirteen of this section shall only apply to procurements by the authority commenced during such periods. The provisions of such subdivisions one, two, three and four shall apply to procurements by the authority commenced during the period from December thirty-first, nineteen hundred ninety-one until December sixteenth, nineteen hundred ninety-three, and to procurements by the authority commenced on and after July first, two thousand [nine- teen] TWENTY-THREE. Notwithstanding the foregoing, the provisions of such subdivisions one, two, three and four shall apply to (i) the award of any contract of the authority if the bid documents for such contract so provide and such bid documents are issued within sixty days of the effective date of this subdivision or within sixty days of December sixteenth, nineteen hundred ninety-three, or (ii) for a period of one hundred eighty days after the effective date of this subdivision, or for a period of one hundred eighty days after December sixteenth, nineteen hundred ninety-three, the award of any contract for which an invitation to bid, solicitation, request for proposal, or any similar document has been issued by the authority prior to the effective date of this subdi- vision or during the period from January first, nineteen hundred nine- ty-two until December fifteenth, nineteen hundred ninety-three. § 1-a. Subdivision 1 of section 1265-a of the public authorities law, as amended by chapter 30 of the laws of 2015, is amended to read as follows: 1. The provisions of this section shall only apply to procurements by the authority commenced during the period from April first, nineteen hundred eighty-seven until December thirty-first, nineteen hundred nine- ty-one, and during the period from December sixteenth, nineteen hundred ninety-three until June thirtieth, two thousand [nineteen] TWENTY-THREE; provided, however, that the provisions of this section shall not apply to (i) the award of any contract of the authority if the bid documents for such contract so provide and such bid documents are issued within sixty days of the effective date of this section or within sixty days of December sixteenth, nineteen hundred ninety-three, or (ii) for a period of one hundred eighty days after the effective date of this section or for a period of one hundred eighty days after December sixteenth, nine- teen hundred ninety-three, the award of any contract for which an invi- tation to bid, solicitation, request for proposal, or any similar docu- ment has been issued by the authority prior to the effective date of this section or during the period from January first, nineteen hundred ninety-two until December sixteenth, nineteen hundred ninety-three. § 2. Section 1209 of the public authorities law is amended by adding a new subdivision 15 to read as follows: 15. (A) WHENEVER THE COMPTROLLER PURSUANT TO SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAPTER INTENDS TO REQUIRE SUPERVISION IN THE FORM OF PRIOR REVIEW AND APPROVAL OF A CONTRACT OR CONTRACT AMEND- MENT TO BE AWARDED BY THE AUTHORITY PURSUANT TO THIS SECTION, THEN SUCH CONTRACT OR CONTRACT AMENDMENT SHALL BE SUBMITTED TO THE COMPTROLLER BY THE AUTHORITY FOR APPROVAL AND SHALL NOT BE A VALID ENFORCEABLE CONTRACT UNLESS IT SHALL FIRST HAVE BEEN APPROVED BY THE COMPTROLLER BUT ONLY IF THE COMPTROLLER HAS NOTIFIED THE AUTHORITY OF SUCH DETERMINATION WITHIN S. 1509--C 261 A. 2009--C THIRTY DAYS OF HAVING RECEIVED WRITTEN NOTICE OF SUCH CONTRACT OR CONTRACT AMENDMENT EITHER IN THE AUTHORITY'S ANNUAL REPORT OR ANY REVISED REPORT; (B) IF THE COMPTROLLER HAS TIMELY NOTIFIED THE AUTHORITY AS PROVIDED IN PARAGRAPH (A) OF THIS SUBDIVISION THAT ANY CONTRACT OR CONTRACT AMENDMENT SHALL BE SUBJECT TO COMPTROLLER PRIOR REVIEW AND APPROVAL, AND SUCH CONTRACT OR CONTRACT AMENDMENT HAS BEEN SUBMITTED TO THE COMP- TROLLER, IT SHALL BECOME VALID AND ENFORCEABLE WITHOUT SUCH APPROVAL IF THE COMPTROLLER HAS NOT APPROVED OR DISAPPROVED IT WITHIN THIRTY DAYS OF SUBMISSION TO THE COMPTROLLER. § 2-a. Section 1265-a of the public authorities law is amended by adding a new subdivision 10 to read as follows: 10. (A) WHENEVER THE COMPTROLLER PURSUANT TO SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAPTER INTENDS TO REQUIRE SUPERVISION IN THE FORM OF PRIOR REVIEW AND APPROVAL OF A CONTRACT OR CONTRACT AMEND- MENT TO BE AWARDED BY THE AUTHORITY PURSUANT TO THIS SECTION, THEN SUCH CONTRACT OR CONTRACT AMENDMENT SHALL BE SUBMITTED TO THE COMPTROLLER BY THE AUTHORITY FOR APPROVAL AND SHALL NOT BE A VALID ENFORCEABLE CONTRACT UNLESS IT SHALL FIRST HAVE BEEN APPROVED BY THE COMPTROLLER BUT ONLY IF THE COMPTROLLER HAS NOTIFIED THE AUTHORITY OF SUCH DETERMINATION WITHIN THIRTY DAYS OF HAVING RECEIVED WRITTEN NOTICE OF SUCH CONTRACT OR CONTRACT AMENDMENT EITHER IN THE AUTHORITY'S ANNUAL REPORT OR ANY REVISED REPORT; (B) IF THE COMPTROLLER HAS TIMELY NOTIFIED THE AUTHORITY AS PROVIDED IN PARAGRAPH (A) OF THIS SUBDIVISION THAT ANY CONTRACT OR CONTRACT AMENDMENT SHALL BE SUBJECT TO COMPTROLLER PRIOR REVIEW AND APPROVAL, AND SUCH CONTRACT OR CONTRACT AMENDMENT HAS BEEN SUBMITTED TO THE COMP- TROLLER, IT SHALL BECOME VALID AND ENFORCEABLE WITHOUT SUCH APPROVAL IF THE COMPTROLLER HAS NOT APPROVED OR DISAPPROVED IT WITHIN THIRTY DAYS OF SUBMISSION TO THE COMPTROLLER. § 3. Paragraphs (a) and (b) of subdivision 7 of section 1209 of the public authorities law, as amended by section 1 of part OO of chapter 54 of the laws of 2016, are amended to read as follows: (a) Except as otherwise provided in this section, all purchase contracts for supplies, materials or equipment involving an estimated expenditure in excess of [one hundred thousand] ONE MILLION dollars and all contracts for public work involving an estimated expenditure in excess of [one hundred thousand] ONE MILLION dollars shall be awarded by the authority to the lowest responsible bidder after obtaining sealed bids in the manner hereinafter set forth. The aforesaid shall not apply to contracts for personal, architectural, engineering or other profes- sional services. The authority may reject all bids and obtain new bids in the manner provided by this section when it is deemed in the public interest to do so or, in cases where two or more responsible bidders submit identical bids which are the lowest bids, award the contract to any of such bidders or obtain new bids from such bidders. Nothing [here- in] IN THIS PARAGRAPH shall obligate the authority to seek new bids after the rejection of bids or after cancellation of an invitation to bid. Nothing in this section shall prohibit the evaluation of bids on the basis of costs or savings including life cycle costs of the item to be purchased, discounts, and inspection services so long as the invita- tion to bid reasonably sets forth the criteria to be used in evaluating such costs or savings. Life cycle costs may include but shall not be limited to costs or savings associated with installation, energy use, maintenance, operation and salvage or disposal. S. 1509--C 262 A. 2009--C (b) Section twenty-eight hundred seventy-nine of this chapter shall apply to the authority's acquisition of goods or services of any kind, in the actual or estimated amount of fifteen thousand dollars or more, provided that (i) a contract for services in the actual or estimated amount of [less than one hundred thousand] ONE MILLION dollars OR LESS shall not require approval by the board of the authority regardless of the length of the period over which the services are rendered, and provided further that a contract for services in the actual or estimated amount [of one hundred thousand] IN EXCESS OF ONE MILLION dollars [or more] shall require approval by the board of the authority regardless of the length of the period over which the services are rendered unless such a contract is awarded to the lowest responsible bidder after obtaining sealed bids and (ii) the board of the authority may by resol- ution adopt guidelines that authorize the award of contracts to small business concerns, to service disabled veteran owned businesses certi- fied pursuant to article seventeen-B of the executive law, or minority or women-owned business enterprises certified pursuant to article fifteen-A of the executive law, or purchases of goods or technology that are recycled or remanufactured, in an amount not to exceed [four hundred thousand] ONE MILLION dollars without a formal competitive process and without further board approval. The board of the authority shall adopt guidelines which shall be made publicly available for the awarding of such contract without a formal competitive process. § 3-a. Paragraphs (a) and (b) of subdivision 2 of section 1265-a of the public authorities law, as amended by section 8 of part OO of chap- ter 54 of the laws of 2016, are amended to read as follows: (a) Except as otherwise provided in this section, all purchase contracts for supplies, materials or equipment involving an estimated expenditure in excess of [one hundred thousand] ONE MILLION dollars and all contracts for public work involving an estimated expenditure in excess of [one hundred thousand] ONE MILLION dollars shall be awarded by the authority to the lowest responsible bidder after obtaining sealed bids in the manner hereinafter set forth. For purposes hereof, contracts for public work shall exclude contracts for personal, engineering and architectural, or professional services. The authority may reject all bids and obtain new bids in the manner provided by this section when it is deemed in the public interest to do so or, in cases where two or more responsible bidders submit identical bids which are the lowest bids, award the contract to any of such bidders or obtain new bids from such bidders. Nothing [herein] IN THIS PARAGRAPH shall obligate the authority to seek new bids after the rejection of bids or after cancellation of an invitation to bid. Nothing in this section shall prohibit the evaluation of bids on the basis of costs or savings including life cycle costs of the item to be purchased, discounts, and inspection services so long as the invitation to bid reasonably sets forth the criteria to be used in evaluating such costs or savings. Life cycle costs may include but shall not be limited to costs or savings associated with installation, energy use, maintenance, operation and salvage or disposal. (b) Section twenty-eight hundred seventy-nine of this chapter shall apply to the authority's acquisition of goods or services of any kind, in the actual or estimated amount of fifteen thousand dollars or more, provided (i) that a contract for services in the actual or estimated amount of [less than one hundred thousand] ONE MILLION dollars OR LESS shall not require approval by the board of the authority regardless of the length of the period over which the services are rendered, and provided further that a contract for services in the actual or estimated S. 1509--C 263 A. 2009--C amount [of one hundred thousand] IN EXCESS OF ONE MILLION dollars [or more] shall require approval by the board of the authority regardless of the length of the period over which the services are rendered unless such a contract is awarded to the lowest responsible bidder after obtaining sealed bids, and (ii) the board of the authority may by resol- ution adopt guidelines that authorize the award of contracts to small business concerns, to service disabled veteran owned businesses certi- fied pursuant to article seventeen-B of the executive law, or minority or women-owned business enterprises certified pursuant to article fifteen-A of the executive law, or purchases of goods or technology that are recycled or remanufactured, in an amount not to exceed [four hundred thousand] ONE MILLION dollars without a formal competitive process and without further board approval. The board of the authority shall adopt guidelines which shall be made publicly available for the awarding of such contract without a formal competitive process. § 4. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by a court of compe- tent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its opera- tion to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provision had not been included herein. § 5. This act shall take effect immediately, provided, however, that: (a) the amendments to paragraphs (a) and (b) of subdivision 7 of section 1209 of the public authorities law made by section three of this act shall not affect the expiration of such subdivision and shall be deemed to expire therewith; and (b) the amendments to paragraphs (a) and (b) of subdivision 2 of section 1265-a of the public authorities law made by section three-a of this act shall not affect the expiration of such paragraphs and shall be deemed to expire therewith. SUBPART D Section 1. Legislative intent. The legislature finds and declares that performance metrics used by the Metropolitan Transportation Authority do not provide adequate information about the actual performance and deliv- ery of the Authority's services, and that improved data collection and sharing on system performance and service delivery could yield signif- icant improvements at the Authority. § 2. The public authorities law is amended by adding a new section 1276-f to read as follows: § 1276-F. METROPOLITAN TRANSPORTATION AUTHORITY TRANSIT PERFORMANCE METRICS. 1. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "ADDITIONAL PLATFORM TIME" MEANS THE AVERAGE ADDED TIME THAT CUSTOMERS SPEND WAITING ON THE PLATFORM FOR A TRAIN, COMPARED WITH THEIR SCHEDULED WAIT TIME. (B) "ADDITIONAL TRAIN TIME" MEANS THE AVERAGE ADDITIONAL TIME CUSTOM- ERS SPEND ONBOARD THE TRAIN DUE TO VARIOUS SERVICE ISSUES. (C) "CUSTOMER JOURNEY TIME PERFORMANCE" MEANS THE PERCENTAGE OF CUSTOMER TRIPS WITH AN ESTIMATED TOTAL TRAVEL TIME WITHIN TWO MINUTES OF THE SCHEDULED TOTAL TRAVEL TIME. S. 1509--C 264 A. 2009--C (D) "ELEVATOR AVAILABILITY" MEANS PERCENTAGE OF FACILITIES THAT REQUIRE THE USE OF STAIRS AND HAVE AN OPERATIONAL ELEVATOR. (E) "ESCALATOR AVAILABILITY" MEANS PERCENTAGE OF FACILITIES THAT REQUIRE THE USE OF STAIRS AND HAVE AN OPERATIONAL ESCALATOR. (F) "EXCESS JOURNEY TIME" MEANS COMPARISON OF MEASURED JOURNEY TIME COMPARED TO SCHEDULED AND STANDARD JOURNEY TIMES. (G) "JOURNEY TIME METRIC" MEANS THE TIMES OF EACH COMPONENT OF A TRIP INCLUDING ACCESS, EGRESS, INTERCHANGE, TIME IN QUEUE FOR TICKETS, TIME ON PLATFORM AND TIME ON TRAIN. JOURNEY TIME AND ITS COMPONENTS MAY BE BASED ON A MANUAL OR AN AUTOMATICALLY GENERATED SAMPLE. (H) "MAJOR INCIDENTS" MEAN INCIDENTS THAT DELAY TWENTY OR MORE TRAINS. (I) "STAFF HOURS LOST TO ACCIDENTS" MEANS STAFF HOURS LOST DUE TO ACCIDENTS OR ILLEGAL ACTIVITY PER BILLION PASSENGER JOURNEYS. (J) "STANDARD JOURNEY TIME" MEANS THE IDEAL JOURNEY TIME CALCULATED BY THE METROPOLITAN TRANSPORTATION AUTHORITY FOR A PARTICULAR JOURNEY. (K) "TERMINAL ON-TIME PERFORMANCE" MEANS THE PERCENTAGE OF TRAINS ARRIVING AT THEIR DESTINATION TERMINALS AS SCHEDULED. A TRAIN MAY BE COUNTED AS ON-TIME IF IT ARRIVES AT ITS DESTINATION EARLY, ON TIME, OR NO MORE THAN TWO MINUTES LATE, AND HAS NOT SKIPPED ANY PLANNED STOPS. 2. REPORTING. THE METROPOLITAN TRANSPORTATION AUTHORITY SHALL TAKE ALL PRACTICABLE MEASURES TO COLLECT, COMPILE AND PUBLISH PERFORMANCE METRICS OF ALL SERVICES PROVIDED BY NEW YORK CITY TRANSIT SUBWAYS, LONG ISLAND RAILROAD AND METRO-NORTH RAILROAD ON A WEEKLY BASIS. THESE METRICS SHALL INCLUDE BUT NOT BE LIMITED TO: (A) ADDITIONAL PLATFORM TIME; (B) ADDITIONAL TRAIN TIME; (C) CUSTOMER JOURNEY TIME PERFORMANCE; (D) ELEVATOR AVAILABILITY; (E) ESCALATOR AVAILABILITY; (F) EXCESS JOURNEY TIME; (G) JOURNEY TIME METRIC; (H) MAJOR INCIDENTS METRIC; (I) STAFF HOURS LOST TO ACCIDENTS; AND (J) TERMINAL ON-TIME PERFORMANCE. 3. INTERNATIONAL BENCHMARKING. (A) THE AUTHORITY SHALL PUBLISH AN ANNUAL REPORT PRESENTING THE AUTHORITY'S PERFORMANCE IN COMPARISON WITH OTHER METROS WHO ARE MEMBERS OF THE COMMUNITY OF METROS KNOWN AS COMET. THIS REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING METRICS: (I) TOTAL OPERATING COST PER CAR PER MILE; (II) MAINTENANCE COST PER CAR PER KM; (III) PASSENGER JOURNEYS PER TOTAL STAFF AND CONTRACTOR HOURS; AND (IV) STAFF HOURS LOST TO ACCIDENTS. (B) THE AUTHORITY SHALL ALSO PROVIDE AN ANNUAL IMPLEMENTATION REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY AND SENATE, AND THE CHAIRS AND RANKING MEMBERS OF THE TRANSPORTATION AND CORPORATIONS, AUTHORITIES AND COMMISSIONS COMMITTEES ON OR BEFORE DECEMBER THIRTY- FIRST EVERY YEAR, AND PUBLISH SUCH REPORT ON ITS WEBSITE. § 3. This act shall take effect on the one hundred eightieth day after it shall have become a law. SUBPART E Section 1. Section 1269-c of the public authorities law is amended by adding a new subdivision c to read as follows: S. 1509--C 265 A. 2009--C C. ON OR BEFORE OCTOBER FIRST, TWO THOUSAND TWENTY-THREE, AND ON OR BEFORE OCTOBER FIRST OF EVERY FIFTH YEAR THEREAFTER, THE AUTHORITY SHALL SUBMIT TO THE METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PROGRAM REVIEW BOARD A TWENTY-YEAR CAPITAL NEEDS ASSESSMENT. SUCH ASSESSMENT SHALL BEGIN WITH THE PERIOD COMMENCING JANUARY FIRST, TWO THOUSAND TWEN- TY-FIVE, AND BEGIN EACH ASSESSMENT WITH EVERY FIFTH YEAR THEREAFTER, AND DESCRIBE CAPITAL INVESTMENTS OVER THE SUCCEEDING TWENTY YEARS. SUCH ASSESSMENT SHALL: (1) SET FORTH BROAD LONG-TERM CAPITAL INVESTMENTS TO BE MADE THROUGHOUT THE DISTRICT; AND (2) ESTABLISH A NON-BINDING BASIS TO BE USED BY THE AUTHORITY IN THE PLANNING OF STRATEGIC INVESTMENTS INVOLVING CAPITAL ELEMENTS IN ITS FIVE-YEAR CAPITAL PLANS. SUCH ASSESS- MENT SHALL NOT REQUIRE A VOTE OF THE METROPOLITAN TRANSPORTATION AUTHOR- ITY CAPITAL PROGRAM REVIEW BOARD AND SHALL BE FOR INFORMATIONAL PURPOSES ONLY. FOR PURPOSES OF THIS SECTION, "BROAD LONG-TERM CAPITAL INVEST- MENTS" SHALL INCLUDE BUT NOT BE LIMITED TO: SYSTEM REBUILDING, ENHANCE- MENT, AND EXPANSION NEEDS; AGENCY NEEDS BROKEN DOWN BY CAPITAL ELEMENT OR INVESTMENT CATEGORY; AND PROJECTED FUTURE TRENDS AND NETWORK IMPLI- CATIONS. SUCH ASSESSMENT SHALL BE CERTIFIED BY THE CHAIRMAN OF THE AUTHORITY AND SHALL BE ENTERED INTO THE PERMANENT RECORD OF THE MINUTES OF THE REVIEW BOARD. § 2. This act shall take effect immediately. SUBPART F Section 1. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows: (JJJ) CENTRAL BUSINESS DISTRICT TOLL CREDIT. (1) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, A RESIDENT INDIVIDUAL WHOSE PRIMARY RESIDENCE IS LOCATED IN THE CENTRAL BUSINESS DISTRICT ESTABLISHED PURSUANT TO ARTICLE FORTY-FOUR-C OF THE VEHICLE AND TRAFFIC LAW AND WHOSE NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR IS LESS THAN SIXTY THOUSAND DOLLARS SHALL BE ENTITLED TO A CREDIT AS CALCULATED PURSUANT TO PARAGRAPH TWO OF THIS SUBSECTION. (2) THE CREDIT SHALL BE EQUAL TO THE AGGREGATE AMOUNT OF CENTRAL BUSI- NESS DISTRICT TOLLS PAID BY THE TAXPAYER DURING THE TAXABLE YEAR PURSU- ANT TO THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM AUTHORIZED BY ARTI- CLE FORTY-FOUR-C OF THE VEHICLE AND TRAFFIC LAW. PROVIDED, HOWEVER, THAT ANY TOLL THAT WOULD CONSTITUTE A TRADE OR BUSINESS EXPENSE UNDER SECTION 162 OF THE INTERNAL REVENUE CODE SHALL BE EXCLUDED. (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. § 2. This act shall take effect immediately. § 3. 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. S. 1509--C 266 A. 2009--C § 4. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through F of this act shall be as specifically set forth in the last section of such Subparts. PART AAAA Section 1. Section 51 of the public authorities law is amended by adding a new subdivision 6 to read as follows: 6. A MEMBER OF THE BOARD MUST VOTE WITHIN THE SCOPE OF HIS OR HER LEGAL AUTHORITY. THE LEGAL AUTHORITY OF A MEMBER OF THE BOARD PURSUANT TO THIS SECTION IS SOLELY TO DETERMINE WHETHER THE ISSUING AUTHORITY HAS DEMONSTRATED THAT THERE IS THE COMMITMENT OF FUNDS SUFFICIENT TO FINANCE THE ACQUISITION AND CONSTRUCTION OF THE PROJECT SUBJECT TO APPROVAL. FAILURE OF A MEMBER TO VOTE WITHIN THE SCOPE OF HIS OR HER LEGAL AUTHOR- ITY CONSTITUTES A VIOLATION OF THE PUBLIC'S TRUST FOR THE PURPOSES OF PARAGRAPH H OF SUBDIVISION THREE OF SECTION SEVENTY-FOUR OF THE PUBLIC OFFICERS LAW. AS THE APPOINTING AUTHORITY, THE GOVERNOR HAS THE FULL DISCRETION TO IMMEDIATELY REMOVE A MEMBER OF THE BOARD HE OR SHE FINDS TO BE ACTING, OR THREATENING TO ACT, BEYOND THE SCOPE OF SUCH MEMBER'S LEGAL AUTHORITY SET FORTH HEREIN. § 2. Severability. If any provision of this act, or any application of any provision of this act, is held to be invalid, that shall not affect the validity or effectiveness of any other provision of this act, or of any other application of any provision of this act, which can be given effect without that provision or application; and to that end, the provisions and applications of this act are severable. § 3. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judgement 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 AAAA of this act shall be as specifically set forth in the last section of such Parts.
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