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.