S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 1509--A                                            A. 2009--A
 
                       S E N A T E - A S S E M B L Y
 
                             January 18, 2019
                                ___________
 
 IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
   cle seven of the Constitution -- read twice and ordered  printed,  and
   when  printed to be committed to the Committee on Finance -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
   article  seven  of  the  Constitution -- read once and referred to the
   Committee on Ways and Means --  committee  discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN  ACT  to amend part U of chapter 61 of the laws of 2011, amending the
   real property tax law and other laws relating to  establishing  stand-
   ards  for  electronic tax administration, in relation to making perma-
   nent provisions relating to mandatory electronic filing of  tax  docu-
   ments;  and  repealing  certain  provisions  of  the  tax  law and the
   administrative code of the city of New York relating thereto (Part A);
   to amend the economic development law, in  relation  to  the  employee
   training  incentive  program  (Part  B);  to amend the tax law and the
   administrative code of the city of New York, in relation to  including
   in  the apportionment fraction receipts constituting net global intan-
   gible low-taxed income (Part C); to amend the tax law and the adminis-
   trative code of the city of New York,  in  relation  to  the  adjusted
   basis for property used to determine whether a manufacturer is a qual-
   ified  New  York manufacturer (Part D); to amend part MM of chapter 59
   of the laws of 2014 amending the labor law and the tax law relating to
   the creation of the workers with disabilities tax credit  program,  in
   relation to extending the effectiveness thereof (Part E); to amend the
   tax  law  in  relation to the inclusion in a decedent's New York gross
   estate any qualified terminable interest property for  which  a  prior
   deduction  was  allowed and certain pre-death gifts (Part F); to amend
   the tax law, in relation to requiring marketplace providers to collect
   sales tax (Part G); to amend the tax law, in relation  to  eliminating
   the  reduced  tax  rates  under  the sales and use tax with respect to
   certain gas and electric service; and to repeal certain provisions  of
   the  tax  law  and  the  administrative  code  of the city of New York
   related thereto (Part H); to amend  the  real  property  tax  law,  in
   relation  to  the  determination  and  use of state equalization rates
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12574-02-9

 S. 1509--A                          2                         A. 2009--A
 
   (Part I); to amend the real property tax law and local finance law, in
   relation to local option disaster assessment relief  (Subpart  A);  to
   amend the real property tax law, in relation to authorizing agreements
   for assessment review services (Subpart B); to amend the real property
   tax law, in relation to the training of assessors and county directors
   of  real property tax services (Subpart C); to amend the real property
   tax law, in relation to providing certain notifications electronically
   (Subpart D); to amend the real property tax law, in  relation  to  the
   valuation  and  taxable  status  dates  of  special franchise property
   (Subpart E); and to amend the real property tax law,  in  relation  to
   the  reporting  requirements  of power plants (Subpart F) (Part J); to
   repeal section 3-d of the general municipal law, relating  to  certif-
   ication  of  compliance with tax levy limit (Part K); to amend the tax
   law, in relation to creating an employer-provided  child  care  credit
   (Part  L);  to  amend  the  tax law, in relation to including gambling
   winnings in New York source income and requiring  withholding  thereon
   (Part  M);  to  amend  the  tax law, in relation to the farm workforce
   retention credit (Part N); to amend the tax law, in relation to updat-
   ing tax preparer penalties; to amend part N of chapter 61 of the  laws
   of  2005,  amending  the  tax law relating to certain transactions and
   related information and relating to the  voluntary  compliance  initi-
   ative,  in  relation  to  eliminating  the  expiration thereof; and to
   repeal certain provisions of the tax law,  relating  to  tax  preparer
   penalties (Part O); to amend the tax law, in relation to extending the
   top personal income tax rate for five years (Part P); to amend the tax
   law  and  the administrative code of the city of New York, in relation
   to extending for five years the limitations on itemized deductions for
   individuals with incomes over one million dollars (Part Q);  to  amend
   the  tax  law,  in relation to extending the clean heating fuel credit
   for three years (Part R); to repeal subdivision (e) of section  23  of
   part  U  of  chapter 61 of the laws of 2011 amending the real property
   tax law and other laws relating to establishing  standards  for  elec-
   tronic  tax  administration  (Part S); to amend the cooperative corpo-
   rations law and the rural electric cooperative  law,  in  relation  to
   eliminating  certain  license  fees (Part T); to amend the tax law, in
   relation to a credit for the rehabilitation of historic properties for
   state owned property leased to private entities (Part U); to amend the
   tax law, in relation to exempting  from  sales  and  use  tax  certain
   tangible  personal  property or services (Part V); to amend the mental
   hygiene law and the tax law, in relation to the creation and  adminis-
   tration  of  a  tax  credit  for employment of eligible individuals in
   recovery from a substance use disorder (Part W); to amend the tax  law
   and  the  administrative  code of the city of New York, in relation to
   excluding from entire net income certain contributions to the  capital
   of a corporation (Part X); to amend the tax law, in relation to estab-
   lishing  a  conditional tax on carried interest (Part Y); to amend the
   tax law, the administrative code of the city of New York, and  chapter
   369  of  the  laws  of 2018 amending the tax law relating to unrelated
   business taxable income of a taxpayer, in relation to making technical
   corrections thereto (Part Z); to amend the real property tax  law,  in
   relation  to tax exemptions for energy systems (Part AA); to amend the
   racing, pari-mutuel wagering and breeding law, in relation to  employ-
   ees  of  the  state  gaming commission (Part BB); to amend the racing,
   pari-mutuel wagering and breeding law, in relation to the thoroughbred
   and standardbred breeding funds (Part CC); to amend the racing,  pari-
   mutuel  wagering  and  breeding  law, in relation to the office of the

 S. 1509--A                          3                         A. 2009--A
 
   gaming inspector general; and to repeal title 9 of article 13  of  the
   racing,  pari-mutuel  wagering and breeding law relating to the gaming
   inspector general (Subpart A); to amend the racing, pari-mutuel wager-
   ing  and  breeding  law, in relation to appointees to the thoroughbred
   breeding and development fund (Subpart B); to amend the  public  offi-
   cers  law  and  the  racing, pari-mutuel wagering and breeding law, in
   relation to the Harry M. Zweig memorial fund (Subpart C); and to amend
   the tax law, in relation to the  prize  payment  amounts  and  revenue
   distributions  of lottery game sales, and use of unclaimed prize funds
   (Subpart D)(Part DD); to amend the tax law, in relation to commissions
   paid to the operator of a video lottery facility;  to  repeal  certain
   provisions  of such law relating thereto; and providing for the repeal
   of certain provisions upon expiration thereof (Part EE); to amend  the
   racing,  pari-mutuel  wagering  and  breeding  law, in relation to the
   deductibility of promotional credits (Part FF); to amend  the  racing,
   pari-mutuel  wagering  and breeding law, in relation to the operations
   of off-track betting corporations (Part  GG);  to  amend  the  racing,
   pari-mutuel  wagering  and  breeding  law, in relation to licenses for
   simulcast facilities, sums relating to track simulcast,  simulcast  of
   out-of-state  thoroughbred races, simulcasting of races run by out-of-
   state harness tracks and distributions of wagers; to amend chapter 281
   of the laws of 1994 amending  the  racing,  pari-mutuel  wagering  and
   breeding  law  and other laws relating to simulcasting and chapter 346
   of the laws of 1990 amending  the  racing,  pari-mutuel  wagering  and
   breeding  law  and other laws relating to simulcasting and the imposi-
   tion of certain taxes, in relation  to  extending  certain  provisions
   thereof;  and  to  amend the racing, pari-mutuel wagering and breeding
   law, in relation to extending certain provisions thereof (Part HH); to
   amend the racing, pari-mutuel wagering and breeding law,  in  relation
   to  equine drug testing standards (Part II); to amend part EE of chap-
   ter 59 of the laws of 2018, amending the racing, pari-mutuel  wagering
   and  breeding  law, relating to adjusting the franchise payment estab-
   lishing an advisory committee to review the structure, operations  and
   funding  of  equine drug testing and research, in relation to the date
   of delivery for recommendations; and to amend the racing,  pari-mutuel
   wagering  and  breeding  law, in relation to the advisory committee on
   equine drug testing, and  equine  lab  testing  provider  restrictions
   removal  (Part  JJ);  to  amend  the  racing, pari-mutuel wagering and
   breeding law, in relation  to  state  gaming  commission  occupational
   licenses  (Part  KK);  to  amend the real property tax law and the tax
   law, in relation to the determination of STAR tax savings  (Part  LL);
   to  amend  the tax law, in relation to cooperative housing corporation
   information returns (Part MM); to amend the tax law,  in  relation  to
   making  a  technical  correction  to  the  enhanced  real property tax
   circuit breaker credit (Part NN); to amend the tax law, in relation to
   mobile home reporting requirements (Part OO); to amend the real  prop-
   erty  tax  law  and  the  tax law, in relation to eligibility for STAR
   exemptions and credits (Part PP); to amend the real property  tax  law
   and  the tax law, in relation to authorizing the disclosure of certain
   information to assessors (Part QQ); to amend the real property tax law
   and the tax law, in relation to the income limits  for  STAR  benefits
   (Part RR); to amend the real property tax law, in relation to clarify-
   ing  certain  notices on school tax bills (Part SS); to amend the real
   property tax law and the tax law,  in  relation  to  making  the  STAR
   program  more  accessible  to taxpayers (Part TT); to amend the public
   health law, in relation to increasing the purchasing age  for  tobacco

 S. 1509--A                          4                         A. 2009--A
 
   products  and  electronic  cigarettes  from  eighteen  to  twenty-one;
   prohibiting sales of tobacco products and electronic cigarettes in all
   pharmacies; prohibiting the acceptance of price reduction  instruments
   for  both  tobacco products and electronic cigarettes; prohibiting the
   display of tobacco products or electronic cigarettes in stores; clari-
   fying that the department of health has the  authority  to  promulgate
   regulations that restrict the sale or distribution of electronic ciga-
   rettes  or  electronic  liquids that have a characterizing flavor, and
   the use of  names  for  characterizing  flavors;  prohibiting  smoking
   inside and on the grounds of all hospitals licensed or operated by the
   office  of mental health; taxing electronic liquid; and requiring that
   electronic cigarettes be sold only  through  licensed  vapor  products
   retailers; to amend the general business law, in relation to the pack-
   aging of vapor products; to amend the tax law, in relation to imposing
   a  supplemental tax on vapor products; to amend the state finance law,
   in relation to adding revenues from  the  supplemental  tax  on  vapor
   products  to  the  health care reform act resource fund; and repealing
   paragraph (e) of subdivison 1 of section 1399-cc of the public  health
   law  relating  to  the  definitions of nicotine, electronic liquid and
   e-liquid (Part UU); relating to constituting a new chapter 7-A of  the
   consolidated  laws,  in  relation  to  the creation of a new office of
   cannabis management, as an independent entity within the  division  of
   alcoholic  beverage  control,  providing  for the licensure of persons
   authorized to cultivate, process, distribute and sell cannabis and the
   use of cannabis by persons aged twenty-one  or  older;  to  amend  the
   public  health  law,  in  relation  to the description of cannabis; to
   amend the vehicle and traffic law, in  relation  to  making  technical
   changes  regarding the definition of cannabis; to amend the penal law,
   in relation to the qualification of certain offenses involving  canna-
   bis  and  to  exempt  certain  persons  from  prosecution for the use,
   consumption, display, production or distribution of cannabis; to amend
   the tax law, in relation to providing for the levying taxes on  canna-
   bis;  to  amend the criminal procedure law, the civil practice law and
   rules, the general business law, the state finance law, the  executive
   law,  the  penal  law  and the vehicle and traffic law, in relation to
   making conforming changes; to repeal sections 221.10 and 221.30 of the
   penal law relating to the criminal possession and sale of cannabis; to
   amend chapter 90 of the laws of 2014 amending the public  health  law,
   the  tax  law,  the  state  finance law, the general business law, the
   penal law and the criminal procedure law relating to  medical  use  of
   marihuana,  in  relation to the effectiveness thereof; to repeal para-
   graph (f) of subdivision 2 of section 850 of the general business  law
   relating  to  drug  related paraphernalia; and making an appropriation
   therefor (Part VV); to amend the tax law, in relation  to  imposing  a
   special  tax  on  passenger  car  rentals  outside of the metropolitan
   commuter transportation district (Part WW); and to amend the  tax  law
   in relation to imposing a tax on Opioids (Part XX)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law major  components  of  legislation
 which are necessary to implement the state fiscal plan for the 2019-2020
 state  fiscal  year.  Each  component  is wholly contained within a Part
 identified as Parts A through XX. The effective date for each particular

 S. 1509--A                          5                         A. 2009--A
 
 provision contained within such Part is set forth in the last section of
 such Part.   Any provision in  any  section  contained  within  a  Part,
 including  the  effective  date  of the Part, which makes reference to a
 section  "of  this  act",  when  used in connection with that particular
 component, shall be deemed  to  mean  and  refer  to  the  corresponding
 section of the Part in which it is found. Section three of this act sets
 forth the general effective date of this act.
 
                                  PART A
 
   Section  1.  Paragraph  10 of subsection (g) of section 658 of the tax
 law is REPEALED.
   § 2. Paragraph 10 of subdivision (g) of section 11-1758 of the  admin-
 istrative code of the city of New York is REPEALED.
   §  3.  Paragraph  5 of subsection (u) of section 685 of the tax law is
 REPEALED.
   § 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
 trative code of the city of New York is REPEALED.
   § 5. Section 23 of part U of chapter 61 of the laws of 2011,  amending
 the real property tax law and other laws relating to establishing stand-
 ards  for electronic tax administration, as amended by section 5 of part
 G of chapter 60 of the laws of 2016, is amended to read as follows:
   § 23. This act shall take effect immediately; provided, however, that:
   (a) the amendments to section 29 of the tax law made by section  thir-
 teen  of  this  act shall apply to tax documents filed or required to be
 filed on or after the sixtieth day  after  which  this  act  shall  have
 become  a  law  [and  shall  expire  and be deemed repealed December 31,
 2019], provided however that the amendments to paragraph 4  of  subdivi-
 sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e)
 of  section  29 of the tax law made by section thirteen of this act with
 regard to individual taxpayers shall take effect September 15, 2011  but
 only  if  the  commissioner  of taxation and finance has reported in the
 report required by section seventeen-b of this act that  the  percentage
 of  individual  taxpayers  electronically  filing  their 2010 income tax
 returns is less than eighty-five percent; provided that the commissioner
 of taxation and finance  shall  notify  the  legislative  bill  drafting
 commission  of the date of the issuance of such report in order that the
 commission may maintain an accurate and timely effective  data  base  of
 the official text of the laws of the state of New York in furtherance of
 effectuating  the  provisions  of  section 44 of the legislative law and
 section 70-b of the public officers law;
   (b) sections fourteen, fifteen, sixteen  and  seventeen  of  this  act
 shall  take  effect  September  15, 2011 but only if the commissioner of
 taxation and finance has reported in  the  report  required  by  section
 seventeen-b  of  this  act  that  the percentage of individual taxpayers
 electronically filing their 2010 income tax returns is less than  eight-
 y-five percent; AND
   (c)  sections  fourteen-a  and fifteen-a of this act shall take effect
 September 15, 2011 and expire and be deemed repealed December  31,  2012
 but  shall  take effect only if the commissioner of taxation and finance
 has reported in the report required by section seventeen-b of  this  act
 that  the percentage of individual taxpayers electronically filing their
 2010 income tax returns is eighty-five percent or greater[;
   (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of  this
 act  shall  take  effect January 1, 2020 but only if the commissioner of
 taxation and finance has reported in  the  report  required  by  section

 S. 1509--A                          6                         A. 2009--A

 seventeen-b  of  this  act  that  the percentage of individual taxpayers
 electronically filing their 2010 income tax returns is less than  eight-
 y-five percent; and
   (e)  sections twenty-one and twenty-one-a of this act shall expire and
 be deemed repealed December 31, 2019].
   § 6. This act shall take effect immediately.
 
                                  PART B

   Section 1. Subdivision 3 of section 441 of  the  economic  development
 law,  as  amended  by  section  1 of part L of chapter 59 of the laws of
 2017, is amended to read as follows:
   3. "Eligible training" means (a) training  provided  by  THE  BUSINESS
 ENTITY OR an approved provider that is:
   (i) to upgrade, retrain or improve the productivity of employees;
   (ii)  provided  to  employees in connection with a significant capital
 investment by a participating business entity;
   (iii) determined by the commissioner to satisfy a business need on the
 part of a participating business entity;
   (iv) not designed to train or upgrade skills as required by a  federal
 or state entity;
   (v) not training the completion of which may result in the awarding of
 a license or certificate required by law in order to perform a job func-
 tion; and
   (vi) not culturally focused training; or
   (b)  an internship program in advanced technology [or], life sciences,
 SOFTWARE DEVELOPMENT OR CLEAN ENERGY approved by  the  commissioner  and
 provided  by  THE  BUSINESS  ENTITY OR an approved provider, on or after
 August first, two thousand fifteen, to provide employment and experience
 opportunities for current students, recent graduates, and recent members
 of the armed forces.
   § 2. Paragraph (b) of subdivision 1 of section  442  of  the  economic
 development  law, as amended by section 2 of part L of chapter 59 of the
 laws of 2017, is amended to read as follows:
   (b) The business entity must demonstrate that it is CONDUCTING  ELIGI-
 BLE TRAINING OR obtaining eligible training from an approved provider;
   §  3.  Paragraph  (a)  of subdivision 2 of section 443 of the economic
 development law, as added by section 1 of part O of chapter  59  of  the
 laws of 2015, is amended to read as follows:
   (a)  provide  such  documentation  as  the commissioner may require in
 order for the commissioner to determine that the business entity intends
 to CONDUCT ELIGIBLE  TRAINING  OR  procure  eligible  training  for  its
 employees from an approved provider;
   § 4. This act shall take effect immediately.
 
                                  PART C
 
   Section  1.  Section  210-A  of the tax law is amended by adding a new
 subdivision 5-a to read as follows:
   5-A. NET GLOBAL INTANGIBLE  LOW-TAXED  INCOME.    NOTWITHSTANDING  ANY
 OTHER  PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED INCOME
 SHALL BE INCLUDED IN THE APPORTIONMENT  FRACTION  AS  PROVIDED  IN  THIS
 SUBDIVISION.  RECEIPTS  CONSTITUTING  NET  GLOBAL  INTANGIBLE  LOW-TAXED
 INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRAC-
 TION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL
 BE INCLUDED IN  THE  DENOMINATOR  OF  THE  APPORTIONMENT  FRACTION.  FOR

 S. 1509--A                          7                         A. 2009--A
 
 PURPOSES  OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE LOW-TAXED
 INCOME" MEANS THE AMOUNT REQUIRED  TO  BE  INCLUDED  IN  THE  TAXPAYER'S
 FEDERAL  GROSS  INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE
 INTERNAL  REVENUE  CODE  LESS  THE AMOUNT OF THE DEDUCTION ALLOWED UNDER
 CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE.
   § 2. Section 11-654.2 of the administrative code of the  city  of  New
 York is amended by adding a new subdivision 5-a to read as follows:
   5-A.  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL
 INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE  RECEIPTS  FRACTION
 AS  PROVIDED  IN  THIS  SUBDIVISION.    RECEIPTS CONSTITUTING NET GLOBAL
 INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN  THE  NUMERATOR  OF
 THE  RECEIPTS FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-
 TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS  FRAC-
 TION.  FOR PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE
 LOW-TAXED  INCOME"  MEANS  THE  AMOUNT  REQUIRED  TO  BE INCLUDED IN THE
 TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION  (A)  OF  SECTION
 951A  OF  THE  INTERNAL  REVENUE  CODE  LESS THE AMOUNT OF THE DEDUCTION
 ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE.
   § 3. Subparagraph (2) of paragraph (a) of subdivision (3)  of  section
 11-604  of the administrative code of the city of New York is amended by
 adding a new clause (E) to read as follows:
   (E) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PARAGRAPH, NET  GLOBAL
 INTANGIBLE  LOW-TAXED  INCOME SHALL BE INCLUDED IN THE RECEIPTS FRACTION
 AS PROVIDED IN THIS CLAUSE. RECEIPTS CONSTITUTING NET GLOBAL  INTANGIBLE
 LOW-TAXED  INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS
 FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE  LOW-TAXED  INCOME
 SHALL  BE  INCLUDED  IN  THE  DENOMINATOR  OF THE RECEIPTS FRACTION. FOR
 PURPOSES OF THIS CLAUSE,  THE  TERM  "NET  GLOBAL  INTANGIBLE  LOW-TAXED
 INCOME" MEANS THE AMOUNT THAT WOULD HAVE BEEN REQUIRED TO BE INCLUDED IN
 THE  TAXPAYER'S  FEDERAL  GROSS  INCOME  PURSUANT  TO  SUBSECTION (A) OF
 SECTION 951A OF THE  INTERNAL  REVENUE  CODE  LESS  THE  AMOUNT  OF  THE
 DEDUCTION  THAT  WOULD  HAVE  BEEN  ALLOWED  UNDER CLAUSE (I) OF SECTION
 250(A)(1)(B) OF SUCH CODE IF THE TAXPAYER HAD NOT MADE AN ELECTION UNDER
 SUBCHAPTER S OF CHAPTER ONE OF THE INTERNAL REVENUE CODE.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART D

   Section 1. Subparagraph (vi) of paragraph  (a)  of  subdivision  1  of
 section  210 of the tax law, as amended by section 11 of part T of chap-
 ter 59 of the laws of 2015, is amended to read as follows:
   (vi) for taxable years beginning on or after January first, two  thou-
 sand  fourteen,  the  amount prescribed by this paragraph for a taxpayer
 [which] THAT is a qualified New York manufacturer, shall be computed  at
 the  rate  of  zero  percent of the taxpayer's business income base. The
 term "manufacturer" shall mean a taxpayer [which] THAT during the  taxa-
 ble  year  is principally engaged in the production of goods by manufac-
 turing, processing, assembling, refining, mining,  extracting,  farming,
 agriculture, horticulture, floriculture, viticulture or commercial fish-
 ing.  However,  the  generation  and  distribution  of  electricity, the
 distribution of natural gas, and the production of steam associated with
 the generation of electricity shall not be qualifying activities  for  a
 manufacturer  under  this  subparagraph.  Moreover,  in  the  case  of a
 combined report, the combined group shall be considered a "manufacturer"
 for purposes of this subparagraph only if the combined group during  the

 S. 1509--A                          8                         A. 2009--A
 
 taxable  year is principally engaged in the activities set forth in this
 paragraph, or any combination thereof. A taxpayer or, in the case  of  a
 combined  report,  a  combined  group  shall be "principally engaged" in
 activities  described above if, during the taxable year, more than fifty
 percent of the gross receipts of the taxpayer or combined group, respec-
 tively, are derived from receipts from the sale  of  goods  produced  by
 such  activities. In computing a combined group's gross receipts, inter-
 corporate receipts shall be eliminated. A "qualified New  York  manufac-
 turer"  is  a manufacturer [which] THAT has property in New York [which]
 THAT is described in clause (A) of subparagraph (i) of paragraph (b)  of
 subdivision  one of section two hundred ten-B of this article and either
 (I) the adjusted basis of such property for [federal  income]  NEW  YORK
 STATE  tax  purposes  at  the  close of the taxable year is at least one
 million dollars or (II) all of its real and personal property is located
 in New York. A taxpayer or, in the case of a combined report, a combined
 group, that does not satisfy the principally engaged test may be a qual-
 ified New York manufacturer  if  the  taxpayer  or  the  combined  group
 employs  during  the  taxable  year  at  least two thousand five hundred
 employees in manufacturing in New York and the taxpayer or the  combined
 group  has  property  in  the  state used in manufacturing, the adjusted
 basis of which for [federal income] NEW YORK STATE tax purposes  at  the
 close of the taxable year is at least one hundred million dollars.
   §  2.  Subparagraph 2 of paragraph (b) of subdivision 1 of section 210
 of the tax law, as amended by section 18 of part T of chapter 59 of  the
 laws of 2015, is amended to read as follows:
   (2)  For  purposes  of  subparagraph  one  of this paragraph, the term
 "manufacturer" shall mean a taxpayer [which]  THAT  during  the  taxable
 year is principally engaged in the production of goods by manufacturing,
 processing,  assembling, refining, mining, extracting, farming, agricul-
 ture, horticulture, floriculture,  viticulture  or  commercial  fishing.
 Moreover,  for  purposes  of  computing  the  capital base in a combined
 report, the combined group shall  be  considered  a  "manufacturer"  for
 purposes  of  this  subparagraph  only  if the combined group during the
 taxable year is principally engaged in the activities set forth in  this
 subparagraph,  or any combination thereof. A taxpayer or, in the case of
 a combined report, a combined group shall be  "principally  engaged"  in
 activities  described above if, during the taxable year, more than fifty
 percent of the gross receipts of the taxpayer or combined group, respec-
 tively, are derived from receipts from the sale  of  goods  produced  by
 such  activities. In computing a combined group's gross receipts, inter-
 corporate receipts shall be eliminated. A "qualified New  York  manufac-
 turer" is a manufacturer that has property in New York that is described
 in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of
 section  two  hundred  ten-B of this article and either (i) the adjusted
 basis of that property for [federal income] NEW YORK STATE tax  purposes
 at the close of the taxable year is at least one million dollars or (ii)
 all  of  its real and personal property is located in New York. In addi-
 tion, a "qualified New York  manufacturer"  means  a  taxpayer  that  is
 defined  as  a qualified emerging technology company under paragraph (c)
 of subdivision one of section thirty-one hundred  two-e  of  the  public
 authorities   law  regardless  of  the  ten  million  dollar  limitation
 expressed in subparagraph one of such paragraph. A taxpayer or,  in  the
 case  of  a combined report, a combined group, that does not satisfy the
 principally engaged test may be a qualified New York manufacturer if the
 taxpayer or the combined group employs during the taxable year at  least
 two thousand five hundred employees in manufacturing in New York and the

 S. 1509--A                          9                         A. 2009--A
 
 taxpayer  or  the combined group has property in the state used in manu-
 facturing, the adjusted basis of which for  [federal  income]  NEW  YORK
 STATE  tax  purposes  at  the  close of the taxable year is at least one
 hundred million dollars.
   §  3.  Clause (ii) of subparagraph 4 of paragraph (k) of subdivision 1
 of section 11-654 of the administrative code of the city of New York, as
 added by section 1 of part D of chapter 60  of  the  laws  of  2015,  is
 amended to read as follows:
   (ii) A "qualified New York manufacturing corporation" is a manufactur-
 ing corporation that has property in the state [which] THAT is described
 in subparagraph five of this paragraph and either (A) the adjusted basis
 of such property for [federal income] NEW YORK STATE tax purposes at the
 close  of  the  taxable year is at least one million dollars or (B) more
 than fifty [percentum] PERCENT of its  real  and  personal  property  is
 located in the state.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART E

   Section  1.  Section  5  of  part MM of chapter 59 of the laws of 2014
 amending the labor law and the tax law relating to the creation  of  the
 workers  with  disabilities  tax  credit  program  is amended to read as
 follows:
   § 5. This act shall take effect January 1, 2015, and  shall  apply  to
 taxable  years beginning on and after that date; provided, however, that
 this act shall expire and be deemed repealed January 1, [2020] 2023.
   § 2. This act shall take effect immediately.
 
                                  PART F
 
   Section 1. Paragraph 3 of subsection (a) of section  954  of  the  tax
 law,  as  amended  by  section 2 of part BB of chapter 59 of the laws of
 2015, is amended to read as follows:
   (3) Increased by the amount of any taxable gift under section 2503  of
 the  internal  revenue  code  not  otherwise  included in the decedent's
 federal gross estate, made during the three year period  ending  on  the
 decedent's  date of death, but not including any gift made: (A) when the
 decedent was not a resident of New  York  state;  or  (B)  before  April
 first,  two  thousand fourteen; or (C) that is real or tangible personal
 property having an actual situs outside New York state at the  time  the
 gift  was made. Provided, however that this paragraph shall not apply to
 the estate of a [decendent] DECEDENT dying on or  after  January  first,
 two thousand [nineteen] TWENTY-SIX.
   § 2. Subsection (a) of section 954 of the tax law is amended by adding
 a new paragraph 4 to read as follows:
   (4)  INCREASED  BY  THE  VALUE  OF  ANY PROPERTY NOT OTHERWISE ALREADY
 INCLUDED IN THE DECEDENT'S FEDERAL GROSS ESTATE IN  WHICH  THE  DECEDENT
 HAD  A QUALIFYING INCOME INTEREST FOR LIFE IF A DEDUCTION WAS ALLOWED ON
 THE RETURN OF THE TAX IMPOSED BY THIS ARTICLE WITH RESPECT TO THE TRANS-
 FER OF SUCH PROPERTY TO THE DECEDENT BY REASON  OF  THE  APPLICATION  OF
 PARAGRAPH  (7) OF SUBSECTION (B) OF SECTION 2056 OF THE INTERNAL REVENUE
 CODE, AS MADE APPLICABLE TO THE TAX IMPOSED BY THIS ARTICLE  BY  SECTION
 NINE  HUNDRED  NINETY-NINE-A  OF  THIS ARTICLE, WHETHER OR NOT A FEDERAL
 ESTATE TAX RETURN WAS REQUIRED TO BE FILED BY THE ESTATE OF  THE  TRANS-
 FERRING SPOUSE.

 S. 1509--A                         10                         A. 2009--A

   § 3. Subsection (c) of section 955 of the tax law, as added by section
 4  of  part  X  of chapter 59 of the laws of 2014, is amended to read as
 follows:
   (c)  Qualified  terminable  interest  property  election.--  Except as
 otherwise provided in this subsection, the election referred to in para-
 graph (7) of subsection (b) of section 2056 of the internal revenue code
 shall not be allowed under this article unless such  election  was  made
 with respect to the federal estate tax return required to be filed under
 the  provisions  of the internal revenue code. If such election was made
 for the purposes of the federal estate tax, then such election must also
 be made by the executor on the return of the tax imposed by  this  arti-
 cle.  Where  no  federal  estate tax return is required to be filed, the
 executor [may] MUST make the election referred to in such paragraph  (7)
 with respect to the tax imposed by this article on the return of the tax
 imposed  by  this article. Any election made under this subsection shall
 be irrevocable.
   § 4. This act shall take effect  immediately;  provided  however  that
 section  one of this act shall apply to estates of decedents dying on or
 after January 1, 2019 and sections two and three of this act shall apply
 to estates of decedents dying on or after April 1, 2019.
 
                                  PART G
 
   Section 1. Section 1101 of the tax law is  amended  by  adding  a  new
 subdivision (e) to read as follows:
   (E)  WHEN  USED  IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED
 UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND
 BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL
 MEAN:
   (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT  WITH
 A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY
 SUCH  MARKETPLACE  SELLER  OR  SELLERS.  A PERSON "FACILITATES A SALE OF
 TANGIBLE PERSONAL PROPERTY" FOR PURPOSES  OF  THIS  PARAGRAPH  WHEN  THE
 PERSON  MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES
 THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES  PLACE  OR  THE
 OFFER  OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTER-
 NET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFIL-
 IATE OF SUCH PERSON COLLECTS THE  RECEIPTS  PAID  BY  A  CUSTOMER  TO  A
 MARKETPLACE  SELLER  FOR  A  SALE  OF  TANGIBLE  PERSONAL  PROPERTY,  OR
 CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR  PURPOSES  OF
 THIS PARAGRAPH, A "SALE OF TANGIBLE PERSONAL PROPERTY" SHALL NOT INCLUDE
 THE  RENTAL  OF  A  PASSENGER CAR AS DESCRIBED IN SECTION ELEVEN HUNDRED
 SIXTY OF THIS CHAPTER BUT SHALL INCLUDE A LEASE DESCRIBED IN SUBDIVISION
 (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.  FOR  PURPOSES  OF
 THIS  PARAGRAPH,  PERSONS  ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP
 INTEREST OF MORE THAN FIVE  PERCENT,  WHETHER  DIRECT  OR  INDIRECT,  IN
 ANOTHER,  OR  WHERE  AN  OWNERSHIP  INTEREST  OF MORE THAN FIVE PERCENT,
 WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS  BY  ANOTHER
 PERSON  OR  BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH
 RESPECT TO EACH OTHER.
   (2) MARKETPLACE SELLER. ANY PERSON, WHETHER  OR  NOT  SUCH  PERSON  IS
 REQUIRED  TO  OBTAIN  A  CERTIFICATE  OF  AUTHORITY UNDER SECTION ELEVEN
 HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET-
 PLACE PROVIDER UNDER WHICH  THE  MARKETPLACE  PROVIDER  WILL  FACILITATE
 SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF
 PARAGRAPH ONE OF THIS SUBDIVISION.

 S. 1509--A                         11                         A. 2009--A
 
   §  2.  Subdivision  1  of  section  1131 of the tax law, as amended by
 section 1 of part X of chapter 59 of the laws of  2018,  is  amended  to
 read as follows:
   (1)  "Persons  required to collect tax" or "person required to collect
 any tax imposed by this article" shall include: every vendor of tangible
 personal property or services; every  recipient  of  amusement  charges;
 [and]  every  operator  of  a hotel; AND EVERY MARKETPLACE PROVIDER WITH
 RESPECT TO  SALES  OF  TANGIBLE  PERSONAL  PROPERTY  IT  FACILITATES  AS
 DESCRIBED  IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED
 ONE OF THIS ARTICLE. Said terms shall also include any officer, director
 or employee of a corporation or of a dissolved corporation, any employee
 of a partnership, any employee or manager of a limited liability  compa-
 ny, or any employee of an individual proprietorship who as such officer,
 director,  employee  or  manager  is under a duty to act for such corpo-
 ration, partnership, limited liability company or individual proprietor-
 ship in complying with any requirement of this article, or has so acted;
 and any member of a partnership or limited liability company.  Provided,
 however,  that any person who is a vendor solely by reason of clause (D)
 or (E) of subparagraph (i)  of  paragraph  (8)  of  subdivision  (b)  of
 section  eleven  hundred  one  of  this  article  shall not be a "person
 required to collect any tax imposed by this article" until  twenty  days
 after the date by which such person is required to file a certificate of
 registration  pursuant  to  section  eleven  hundred thirty-four of this
 part.
   § 3. Section 1132 of the tax law is amended by adding a  new  subdivi-
 sion (l) to read as follows:
   (L)(1)  A  MARKETPLACE  PROVIDER  WITH  RESPECT  TO A SALE OF TANGIBLE
 PERSONAL PROPERTY IT FACILITATES: (A) SHALL HAVE ALL THE OBLIGATIONS AND
 RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE  TWENTY-NINE  OF  THIS
 CHAPTER  AND  UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING,
 BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE  OF  AUTHORITY,  TO
 COLLECT  TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF-
 ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION
 OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE  THE  REFUND  AUTHORIZED  BY
 SUBDIVISION  (E)  OF  THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION
 (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT  TO  THE
 PROVISIONS  OF  SUCH  SUBDIVISIONS;  AND (B) SHALL KEEP SUCH RECORDS AND
 INFORMATION AND COOPERATE WITH THE COMMISSIONER  TO  ENSURE  THE  PROPER
 COLLECTION  AND  REMITTANCE  OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE
 COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY  TO
 COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
 SUBJECT  TO  TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF
 THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH  SALE  IN  ITS
 TAXABLE  RECEIPTS  FOR  PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF
 THIS PART IF, IN REGARD TO SUCH SALE: (A)  THE  MARKETPLACE  SELLER  CAN
 SHOW  THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM
 SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED  CERTIFICATE
 OF  COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT
 THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT  SALES  TAX  AND  WILL
 COLLECT  SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY
 THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH
 SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE;  AND  (B)  ANY
 FAILURE  OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX
 IN REGARD TO SUCH SALE WAS NOT THE RESULT  OF  SUCH  MARKETPLACE  SELLER
 PROVIDING  THE  MARKETPLACE  PROVIDER  WITH  INCORRECT INFORMATION. THIS

 S. 1509--A                         12                         A. 2009--A

 PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH
 (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A  CERTIF-
 ICATE  OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES
 OF  SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH
 CERTIFICATE OF COLLECTION AND  THE  TIMING  OF  ITS  ACCEPTANCE  BY  THE
 MARKETPLACE  SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF TANGIBLE
 PERSONAL PROPERTY BY A MARKETPLACE SELLER  THAT  ARE  FACILITATED  BY  A
 MARKETPLACE  PROVIDER  WHO  IS  AFFILIATED  WITH SUCH MARKETPLACE SELLER
 WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN
 HUNDRED ONE OF THIS ARTICLE, THE  MARKETPLACE  SELLER  SHALL  BE  DEEMED
 LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR
 PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS
 PART.
   (3)  THE  COMMISSIONER  MAY,  IN  HIS OR HER DISCRETION: (A) DEVELOP A
 STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED  BY  A  MARKETPLACE
 PROVIDER,  IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT
 THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR  WHOM  THE  MARKET-
 PLACE  PROVIDER  FACILITATES  SALES  OF TANGIBLE PERSONAL PROPERTY, WITH
 RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY
 OCCURS IN THE STATE; AND (B) PROVIDE BY REGULATION OR OTHERWISE THAT THE
 INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT  BETWEEN
 THE  MARKETPLACE  PROVIDER  AND  MARKETPLACE  SELLER  WILL HAVE THE SAME
 EFFECT  AS  A  MARKETPLACE  SELLER'S  ACCEPTANCE  OF  A  CERTIFICATE  OF
 COLLECTION  FROM  SUCH  MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS
 SUBDIVISION.
   § 4. Section 1133 of the tax law is amended by adding a  new  subdivi-
 sion (f) to read as follows:
   (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION
 FOR  FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE
 MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR-
 MATION GIVEN TO THE MARKETPLACE  PROVIDER  BY  THE  MARKETPLACE  SELLER.
 PROVIDED,  HOWEVER,  THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE
 SELLER AND MARKETPLACE PROVIDER ARE AFFILIATED  WITHIN  THE  MEANING  OF
 PARAGRAPH  ONE  OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS
 ARTICLE.
   § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
 amended by section 46 of part K of chapter 61 of the laws  of  2011,  is
 amended to read as follows:
   (4)  The  return of a vendor of tangible personal property or services
 shall show such vendor's receipts from sales and the number  of  gallons
 of any motor fuel or diesel motor fuel sold and also the aggregate value
 of tangible personal property and services and number of gallons of such
 fuels  sold by the vendor, the use of which is subject to tax under this
 article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
 provisions  of  section  eleven  hundred  thirty-seven of this part. The
 return of a recipient of amusement charges shall show all  such  charges
 and the amount of tax thereon, and the return of an operator required to
 collect  tax  on  rents shall show all rents received or charged and the
 amount of tax thereon.  THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE
 THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY  A
 MARKETPLACE  PROVIDER  IF,  IN  REGARD TO SUCH SALE: (A) THE MARKETPLACE
 SELLER HAS TIMELY RECEIVED IN GOOD FAITH A  PROPERLY  COMPLETED  CERTIF-
 ICATE  OF  COLLECTION  FROM  THE MARKETPLACE PROVIDER OR THE MARKETPLACE
 PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE  COMMISSIONER  IN  THE
 PUBLICLY-AVAILABLE  AGREEMENT  BETWEEN  THE MARKETPLACE PROVIDER AND THE
 MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION  ONE  OF  SECTION  ELEVEN

 S. 1509--A                         13                         A. 2009--A
 
 HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE
 MARKETPLACE  SELLER  TO  THE  MARKETPLACE  PROVIDER  ABOUT SUCH TANGIBLE
 PERSONAL PROPERTY IS ACCURATE.
   §  6.  Section 1142 of the tax law is amended by adding a new subdivi-
 sion 15 to read as follows:
   (15) TO PUBLISH A LIST ON  THE  DEPARTMENT'S  WEBSITE  OF  MARKETPLACE
 PROVIDERS  WHOSE  CERTIFICATES  OF  AUTHORITY  HAVE BEEN REVOKED AND, IF
 NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR  OTHER-
 WISE  THAT  A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF THE
 DUTY TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY  FACILITATED
 BY  A  MARKETPLACE  PROVIDER  ONLY  IF,  IN  ADDITION  TO THE CONDITIONS
 PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED
 THIRTY-TWO OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS  NOT  ON
 SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY.
   §  7.  This act shall take effect immediately and shall apply to sales
 made on or after September 1, 2019.
 
                                  PART H
 
   Section 1. Subparagraph (A) of  paragraph  1  of  subdivision  (b)  of
 section  1105 of the tax law, as amended by section 9 of part S of chap-
 ter 85 of the laws of 2002, is amended to read as follows:
   (A) gas, electricity, refrigeration  and  steam,  and  gas,  electric,
 refrigeration and steam service of whatever nature, INCLUDING THE TRANS-
 PORTATION,  TRANSMISSION  OR DISTRIBUTION OF GAS OR ELECTRICITY, EVEN IF
 SOLD SEPARATELY;
   § 2. Section 1105-C of the tax law is REPEALED.
   § 3. Subparagraph (xi) of paragraph 4 of subdivision  (a)  of  section
 1210 of the tax law is REPEALED.
   § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis-
 trative code of the city of New York is REPEALED.
   § 5. This act shall take effect June 1, 2019, and shall apply to sales
 made  and services rendered on and after that date, whether or not under
 a prior contract.
 
                                  PART I
 
   Section 1. Subdivision 3 of section 1204 of the real property tax law,
 as added by chapter 115 of the laws of  2018,  is  amended  to  read  as
 follows:
   3.  Where  the tentative equalization rate is not within plus or minus
 five [percentage points] PERCENT of the locally stated level of  assess-
 ment,  the assessor shall provide notice in writing to the local govern-
 ing body of any affected town, city, village, county and school district
 of the difference between the locally stated level of assessment and the
 tentative equalization rate.  Such notice shall be made within ten  days
 of the receipt of the tentative equalization rate, or within ten days of
 the  filing  of  the  tentative assessment roll, whichever is later, and
 shall provide the difference in the indicated total full value estimates
 of the locally stated level of assessment and the tentative equalization
 rate for the taxable property within each affected town, city,  village,
 county and school district, where applicable.
   § 2. The real property tax law is amended by adding a new section 1211
 to read as follows:
   §  1211.  CONFIRMATION  BY COMMISSIONER OF THE LOCALLY STATED LEVEL OF
 ASSESSMENT. NOTWITHSTANDING THE  FOREGOING  PROVISIONS  OF  THIS  TITLE,

 S. 1509--A                         14                         A. 2009--A
 
 BEFORE  THE  COMMISSIONER DETERMINES A TENTATIVE EQUALIZATION RATE FOR A
 CITY, TOWN OR VILLAGE, HE OR SHE  SHALL  EXAMINE  THE  ACCURACY  OF  THE
 LOCALLY STATED LEVEL OF ASSESSMENT APPEARING ON THE TENTATIVE ASSESSMENT
 ROLL.  IF  THE COMMISSIONER CONFIRMS THE LOCALLY STATED LEVEL OF ASSESS-
 MENT, THEN AS SOON THEREAFTER AS IS PRACTICABLE, HE OR SHE SHALL  ESTAB-
 LISH  AND  CERTIFY  SUCH LOCALLY STATED LEVEL OF ASSESSMENT AS THE FINAL
 EQUALIZATION RATE FOR SUCH CITY, TOWN OR VILLAGE IN THE MANNER  PROVIDED
 BY  SECTIONS TWELVE HUNDRED TEN AND TWELVE HUNDRED TWELVE OF THIS TITLE.
 THE PROVISIONS OF SECTIONS TWELVE HUNDRED FOUR, TWELVE HUNDRED  SIX  AND
 TWELVE HUNDRED EIGHT OF THIS TITLE SHALL NOT APPLY IN SUCH CASES, UNLESS
 THE  COMMISSIONER  FINDS THAT THE FINAL ASSESSMENT ROLL DIFFERS FROM THE
 TENTATIVE ASSESSMENT ROLL TO AN EXTENT THAT RENDERS THE  LOCALLY  STATED
 LEVEL OF ASSESSMENT INACCURATE, AND RESCINDS THE FINAL EQUALIZATION RATE
 ON THAT BASIS.
   §  3. Paragraph (d) of subdivision 1 of section 1314 of the real prop-
 erty tax law, as amended by chapter 158 of the laws of 2002, is  amended
 to read as follows:
   (d) (I) Such district superintendent shall also determine what propor-
 tion of any tax to be levied in such school district for school purposes
 during  the current school year shall be levied upon each part of a city
 or town included in such school district by dividing the sum of the full
 valuation of real property in such part of a city or town by  the  total
 of  all  such  full valuations of real property in such school district.
 PROVIDED, HOWEVER, THAT PRIOR TO THE LEVY OF TAXES, THE  GOVERNING  BODY
 OF THE SCHOOL DISTRICT MAY ADOPT A RESOLUTION DIRECTING SUCH PROPORTIONS
 TO  BE  BASED  UPON  THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH
 SUCH CITY OR TOWN OVER EITHER A THREE-YEAR  PERIOD,  CONSISTING  OF  THE
 CURRENT  SCHOOL YEAR AND THE TWO PRIOR SCHOOL YEARS, OR OVER A FIVE-YEAR
 PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE FOUR PRIOR  SCHOOL
 YEARS.  ONCE  SUCH  A  RESOLUTION  HAS BEEN ADOPTED, THE PROPORTIONS FOR
 ENSUING SCHOOL YEARS SHALL CONTINUE TO BE BASED UPON  THE  AVERAGE  FULL
 VALUATION  OF  REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER THE SELECTED
 PERIOD, UNLESS THE RESOLUTION PROVIDES OTHERWISE OR IS REPEALED.
   (II) Such proportions shall be expressed  in  the  nearest  exact  ten
 thousandths  and  the  school  authorities of such school district shall
 levy such a proportion of any tax to be raised in  the  school  district
 during the current school year upon each part of a city or town included
 in  such  school  district as shall have been determined by the district
 superintendent. A new proportion shall be  determined  for  each  school
 year  thereafter  by  the district superintendent in accordance with the
 provisions of this section by the use of the latest  state  equalization
 rates.  In  any such school district that is not within the jurisdiction
 of a district superintendent of schools, the duties which  would  other-
 wise be performed by the district superintendent under the provisions of
 this  section,  shall  be  performed  by  the school authorities of such
 district.
   § 4. This act shall take effect immediately.
 
                                  PART J
 
   Section 1. This Part enacts into law major components  of  legislation
 relating to the improvement of the administration of real property taxa-
 tion  in accordance with the real property tax law and other laws relat-
 ing thereto. Each component is wholly contained within a Subpart identi-
 fied as Subparts A through F. The effective  date  for  each  particular
 provision contained within such Subpart is set forth in the last section

 S. 1509--A                         15                         A. 2009--A
 
 of  such  Subpart.    Any  provision  in  any section contained within a
 Subpart, including the effective date of  the  Subpart,  which  makes  a
 reference  to a section "of this act", when used in connection with that
 particular  component,  shall  be deemed to mean and refer to the corre-
 sponding section of the Subpart in which it is found.  Section three  of
 this Part sets forth the general effective date of this Part.
 
                                 SUBPART A
 
   Section  1.  The  real  property  tax  law  is amended by adding a new
 section 497 to read as follows:
   § 497. ASSESSMENT RELIEF IN STATE DISASTER EMERGENCIES. 1.    NOTWITH-
 STANDING  ANY  PROVISION OF LAW TO THE CONTRARY, DURING A STATE DISASTER
 EMERGENCY AS DEFINED BY SECTION TWENTY OF THE EXECUTIVE LAW, AN ELIGIBLE
 MUNICIPALITY MAY EXERCISE THE PROVISIONS OF THIS SECTION IF ITS  GOVERN-
 ING BODY, BY THE SIXTIETH DAY FOLLOWING THE DATE UPON WHICH THE GOVERNOR
 DECLARES A STATE DISASTER EMERGENCY, PASSES A LOCAL LAW OR ORDINANCE, OR
 IN  THE  CASE OF A SCHOOL DISTRICT A RESOLUTION, ADOPTING THE PROVISIONS
 OF THIS SECTION. AN ELIGIBLE MUNICIPALITY MAY PROVIDE ASSESSMENT  RELIEF
 FOR  REAL  PROPERTY  THAT  IS  IMPACTED  BY THE DISASTER THAT LED TO THE
 DECLARATION OF THE STATE DISASTER EMERGENCY, AND THAT IS LOCATED  WITHIN
 SUCH MUNICIPALITY, AS PROVIDED IN SUBPARAGRAPHS (I), (II), (III) OR (IV)
 OF  PARAGRAPH  (A)  OF  SUBDIVISION  THREE  OF  THIS SECTION ONLY IF ITS
 GOVERNING BODY SPECIFICALLY ELECTS TO DO SO AS PART OF SUCH  LOCAL  LAW,
 ORDINANCE  OR  RESOLUTION.  A  COPY  OF ANY SUCH LOCAL LAW, ORDINANCE OR
 RESOLUTION SHALL BE FILED WITH THE COMMISSIONER WITHIN  TEN  DAYS  AFTER
 THE ADOPTION THEREOF.
   2.  DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   A. "ELIGIBLE COUNTY" SHALL MEAN A COUNTY, OTHER THAN A  COUNTY  WHOLLY
 CONTAINED WITHIN A CITY, SPECIFICALLY REFERENCED WITHIN A DECLARATION BY
 THE GOVERNOR OF A STATE DISASTER EMERGENCY.
   B.  "ELIGIBLE  MUNICIPALITY"  SHALL  MEAN  A MUNICIPAL CORPORATION, AS
 DEFINED BY SUBDIVISION TEN OF SECTION ONE HUNDRED TWO OF  THIS  CHAPTER,
 THAT  IS  EITHER: (I) AN ELIGIBLE COUNTY; OR (II) A CITY, TOWN, VILLAGE,
 SPECIAL DISTRICT, OR SCHOOL DISTRICT THAT IS WHOLLY OR PARTLY  CONTAINED
 WITHIN AN ELIGIBLE COUNTY.
   C.  "IMPACTED  TAX  ROLL"  SHALL  MEAN  THE FINAL ASSESSMENT ROLL THAT
 SATISFIES BOTH OF THE FOLLOWING CONDITIONS: (A) THE ROLL IS BASED UPON A
 TAXABLE STATUS DATE OCCURRING PRIOR TO A DISASTER THAT IS THE SUBJECT OF
 A DECLARATION BY THE GOVERNOR OF A STATE  DISASTER  EMERGENCY;  AND  (B)
 TAXES  LEVIED  UPON THAT ROLL BY OR ON BEHALF OF A PARTICIPATING MUNICI-
 PALITY ARE PAYABLE WITHOUT INTEREST ON OR AFTER THE DATE OF  THE  DISAS-
 TER.
   D.  "PARTICIPATING  MUNICIPALITY"  SHALL MEAN AN ELIGIBLE MUNICIPALITY
 THAT HAS PASSED A LOCAL LAW, ORDINANCE, OR RESOLUTION TO PROVIDE ASSESS-
 MENT RELIEF TO PROPERTY OWNERS WITHIN SUCH ELIGIBLE MUNICIPALITY  PURSU-
 ANT TO THE PROVISIONS OF THIS SECTION.
   E.  "TOTAL  ASSESSED VALUE" SHALL MEAN THE TOTAL ASSESSED VALUE OF THE
 PARCEL PRIOR TO ANY AND ALL EXEMPTION ADJUSTMENTS.
   F. "IMPROVED VALUE" SHALL MEAN THE MARKET VALUE OF THE  REAL  PROPERTY
 IMPROVEMENTS EXCLUDING THE LAND.
   G.  "PROPERTY"  SHALL  MEAN  "REAL  PROPERTY", "PROPERTY" OR "LAND" AS
 DEFINED UNDER PARAGRAPHS  (A)  THROUGH  (G)  OF  SUBDIVISION  TWELVE  OF
 SECTION ONE HUNDRED TWO OF THIS CHAPTER.

 S. 1509--A                         16                         A. 2009--A
 
   3.  ASSESSMENT RELIEF FOR DISASTER VICTIMS IN AN ELIGIBLE COUNTY.  (A)
 NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE REAL PROPER-
 TY IS IMPACTED BY A DISASTER THAT LED TO  THE  DECLARATION  OF  A  STATE
 DISASTER  EMERGENCY, AND SUCH PROPERTY IS LOCATED WITHIN A PARTICIPATING
 MUNICIPALITY, ASSESSMENT RELIEF SHALL BE GRANTED AS FOLLOWS:
   (I)  IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT
 RELIEF FOR REAL PROPERTY THAT LOST AT LEAST TEN PERCENT  BUT  LESS  THAN
 TWENTY  PERCENT  OF  ITS  IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED
 VALUE ATTRIBUTABLE TO THE  IMPROVEMENTS  SHALL  BE  REDUCED  BY  FIFTEEN
 PERCENT  FOR  PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED
 TAX ROLL.
   (II) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT
 RELIEF FOR REAL PROPERTY THAT LOST AT LEAST TWENTY PERCENT BUT LESS THAN
 THIRTY PERCENT OF ITS IMPROVED VALUE DUE TO  A  DISASTER,  THE  ASSESSED
 VALUE  ATTRIBUTABLE  TO THE IMPROVEMENTS SHALL BE REDUCED BY TWENTY-FIVE
 PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON  THE  IMPACTED
 TAX ROLL.
   (III)  IF  A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESS-
 MENT RELIEF FOR REAL PROPERTY THAT LOST AT LEAST THIRTY PERCENT BUT LESS
 THAN FORTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED
 VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED  BY  THIRTY-FIVE
 PERCENT  FOR  PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED
 TAX ROLL.
   (IV) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT
 RELIEF FOR REAL PROPERTY THAT LOST AT LEAST FORTY PERCENT BUT LESS  THAN
 FIFTY  PERCENT  OF  ITS  IMPROVED  VALUE DUE TO A DISASTER, THE ASSESSED
 VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE  REDUCED  BY  FORTY-FIVE
 PERCENT  FOR  PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED
 TAX ROLL.
   (V) IF THE PROPERTY LOST AT LEAST FIFTY BUT LESS THAN SIXTY PERCENT OF
 ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO
 THE IMPROVEMENTS SHALL BE REDUCED BY FIFTY-FIVE PERCENT FOR PURPOSES  OF
 THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL.
   (VI) IF THE PROPERTY LOST AT LEAST SIXTY BUT LESS THAN SEVENTY PERCENT
 OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE
 TO  THE IMPROVEMENTS SHALL BE REDUCED BY SIXTY-FIVE PERCENT FOR PURPOSES
 OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL.
   (VII) IF THE PROPERTY LOST AT  LEAST  SEVENTY  BUT  LESS  THAN  EIGHTY
 PERCENT  OF  ITS  IMPROVED  VALUE  DUE TO A DISASTER, THE ASSESSED VALUE
 ATTRIBUTABLE TO  THE  IMPROVEMENTS  SHALL  BE  REDUCED  BY  SEVENTY-FIVE
 PERCENT  FOR  PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED
 TAX ROLL.
   (VIII) IF THE PROPERTY LOST AT  LEAST  EIGHTY  BUT  LESS  THAN  NINETY
 PERCENT  OF  ITS  IMPROVED  VALUE  DUE TO A DISASTER, THE ASSESSED VALUE
 ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY EIGHTY-FIVE PERCENT
 FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL.
   (IX) IF THE PROPERTY LOST AT LEAST NINETY BUT LESS  THAN  ONE  HUNDRED
 PERCENT  OF  ITS  IMPROVED  VALUE  DUE TO A DISASTER, THE ASSESSED VALUE
 ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY NINETY-FIVE PERCENT
 FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL.
   (X) IF THE PROPERTY LOST ONE HUNDRED PERCENT OF ITS IMPROVED VALUE DUE
 TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL
 BE REDUCED BY ONE HUNDRED PERCENT  FOR  PURPOSES  OF  THE  PARTICIPATING
 MUNICIPALITY ON THE IMPACTED TAX ROLL.
   (XI)  THE  PERCENTAGE LOSS IN IMPROVED VALUE FOR THIS PURPOSE SHALL BE
 ADOPTED BY THE ASSESSOR FROM A WRITTEN FINDING OF THE FEDERAL  EMERGENCY

 S. 1509--A                         17                         A. 2009--A
 
 MANAGEMENT  AGENCY OR, WHERE NO SUCH FINDING EXISTS, SHALL BE DETERMINED
 BY THE ASSESSOR IN THE MANNER  PROVIDED  BY  THIS  SECTION,  SUBJECT  TO
 REVIEW BY THE BOARD OF ASSESSMENT REVIEW.
   (XII)  WHERE  THE  ASSESSED VALUE OF A PROPERTY IS REDUCED PURSUANT TO
 THIS SECTION, THE DIFFERENCE BETWEEN THE PROPERTY'S ASSESSED  VALUE  AND
 ITS  REDUCED  ASSESSED VALUE SHALL BE EXEMPT FROM TAXATION. NO REDUCTION
 IN ASSESSED VALUE SHALL BE GRANTED PURSUANT TO THIS  SECTION  EXCEPT  AS
 SPECIFIED  ABOVE FOR SUCH COUNTIES. NO REDUCTION IN ASSESSED VALUE SHALL
 BE GRANTED PURSUANT TO THIS SECTION FOR PURPOSES OF  ANY  COUNTY,  CITY,
 TOWN,  VILLAGE OR SCHOOL DISTRICT THAT HAS NOT ADOPTED THE PROVISIONS OF
 THIS SECTION.
   (B) TO RECEIVE SUCH RELIEF PURSUANT TO THIS SECTION, A PROPERTY  OWNER
 IN  A  PARTICIPATING  MUNICIPALITY SHALL SUBMIT A WRITTEN REQUEST TO THE
 ASSESSOR ON A FORM PRESCRIBED BY THE  COMMISSIONER  WITHIN  ONE  HUNDRED
 TWENTY  DAYS  FOLLOWING THE DATE UPON WHICH THE STATE DISASTER EMERGENCY
 WAS DECLARED BY THE GOVERNOR, PROVIDED, HOWEVER, THAT SUCH  ONE  HUNDRED
 TWENTY DAY PERIOD MAY BE EXTENDED TO A TOTAL OF UP TO ONE HUNDRED EIGHTY
 DAYS  BY  A  LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED BY THE GOVERNING
 BODY OF THE ASSESSING UNIT. A COPY OF ANY SUCH LOCAL LAW,  ORDINANCE  OR
 RESOLUTION  SHALL  BE  FILED  WITH  THE COMMISSIONER. SUCH REQUEST SHALL
 ATTACH ANY AND ALL DETERMINATIONS BY THE  FEDERAL  EMERGENCY  MANAGEMENT
 AGENCY, AND ANY AND ALL REPORTS BY AN INSURANCE ADJUSTER, SHALL DESCRIBE
 IN  REASONABLE  DETAIL THE DAMAGE CAUSED TO THE PROPERTY BY THE DISASTER
 AND THE CONDITION OF THE PROPERTY FOLLOWING THE DISASTER, AND  SHALL  BE
 ACCOMPANIED BY SUPPORTING DOCUMENTATION, IF AVAILABLE.
   (C)  UPON RECEIVING SUCH A REQUEST, THE ASSESSOR SHALL ADOPT THE FIND-
 ING BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY OR, IF SUCH FINDING  DOES
 NOT  EXIST, THE ASSESSOR SHALL MAKE A FINDING AS TO WHETHER THE PROPERTY
 LOST AT LEAST FIFTY PERCENT OF ITS IMPROVED VALUE OR, IF A PARTICIPATING
 MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR REAL  PROPERTY
 THAT  LOST  A LESSER PERCENTAGE OF IMPROVED VALUE SUCH LESSER PERCENTAGE
 OF ITS IMPROVED VALUE, AS A RESULT OF A  DISASTER.  THE  ASSESSOR  SHALL
 THEREAFTER ADOPT OR CLASSIFY THE PERCENTAGE LOSS OF IMPROVED VALUE WITH-
 IN ONE OF THE FOLLOWING RANGES:
   (I)  AT  LEAST TEN PERCENT BUT LESS THAN TWENTY PERCENT, PROVIDED THAT
 THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY  HAS
 ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE,
   (II)  AT  LEAST  TWENTY PERCENT BUT LESS THAN THIRTY PERCENT, PROVIDED
 THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY
 HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE,
   (III) AT LEAST THIRTY PERCENT BUT LESS THAN  FORTY  PERCENT,  PROVIDED
 THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY
 HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE,
   (IV) AT LEAST FORTY PERCENT BUT LESS THAN FIFTY PERCENT, PROVIDED THAT
 THIS  RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY HAS
 ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE,
   (V) AT LEAST FIFTY PERCENT BUT LESS THAN SIXTY PERCENT,
   (VI) AT LEAST SIXTY PERCENT BUT LESS THAN SEVENTY PERCENT,
   (VII) AT LEAST SEVENTY PERCENT BUT LESS THAN EIGHTY PERCENT,
   (VIII) AT LEAST EIGHTY PERCENT BUT LESS THAN NINETY PERCENT,
   (IX) AT LEAST NINETY PERCENT BUT LESS THAN ONE HUNDRED PERCENT, OR
   (X) ONE HUNDRED PERCENT.
   (D) ON OR BEFORE THE THIRTIETH DAY AFTER THE LAST DATE FOR THE  FILING
 OF REQUESTS FOR RELIEF PURSUANT TO THIS SECTION, THE ASSESSOR SHALL MAIL
 WRITTEN  NOTICE OF SUCH FINDINGS TO THE PROPERTY OWNER AND PARTICIPATING
 MUNICIPALITY. THE NOTICE SHALL INDICATE THAT IF THE  PROPERTY  OWNER  IS

 S. 1509--A                         18                         A. 2009--A
 
 DISSATISFIED  WITH  THESE  FINDINGS, HE OR SHE MAY FILE A COMPLAINT WITH
 THE BOARD OF ASSESSMENT REVIEW UP  UNTIL  THE  DATE  SPECIFIED  IN  SUCH
 NOTICE, WHICH DATE SHALL BE THE TWENTY-FIRST DAY AFTER THE LAST DATE FOR
 THE  MAILING OF SUCH NOTICES. IF ANY COMPLAINTS ARE SO FILED, SUCH BOARD
 SHALL RECONVENE UPON TEN DAYS WRITTEN NOTICE TO THE PROPERTY  OWNER  AND
 ASSESSOR  TO  HEAR  AND  DETERMINE THE COMPLAINT, AND SHALL MAIL WRITTEN
 NOTICE OF ITS DETERMINATION TO THE ASSESSOR AND  PROPERTY  OWNER  WITHIN
 FIFTEEN  DAYS  OF  SUCH  HEARING. THE PROVISIONS OF ARTICLE FIVE OF THIS
 CHAPTER SHALL GOVERN THE REVIEW PROCESS TO THE EXTENT  PRACTICABLE.  FOR
 THE  PURPOSES  OF  THIS SECTION ONLY, THE APPLICANT MAY COMMENCE, WITHIN
 THIRTY DAYS OF MAILING OF A WRITTEN DETERMINATION,  A  PROCEEDING  UNDER
 TITLE  ONE  OF  ARTICLE  SEVEN  OF THIS CHAPTER OR, IF APPLICABLE, UNDER
 TITLE ONE-A OF ARTICLE SEVEN OF THIS  CHAPTER.  SECTIONS  SEVEN  HUNDRED
 TWENTY-SEVEN  AND  SEVEN  HUNDRED  THIRTY-NINE OF THIS CHAPTER SHALL NOT
 APPLY.
   (E) WHERE PROPERTY HAS LOST AT LEAST FIFTY  PERCENT  OF  ITS  IMPROVED
 VALUE OR, IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESS-
 MENT  RELIEF FOR REAL PROPERTY THAT LOST A LESSER PERCENTAGE OF IMPROVED
 VALUE SUCH LESSER PERCENTAGE, DUE TO  A  DISASTER,  THE  ASSESSED  VALUE
 ATTRIBUTABLE TO THE IMPROVEMENTS ON THE PROPERTY ON THE IMPACTED ASSESS-
 MENT  ROLL  SHALL  BE REDUCED BY THE APPROPRIATE PERCENTAGE SPECIFIED IN
 PARAGRAPH (A) OF THIS SUBDIVISION, PROVIDED THAT ANY EXEMPTIONS THAT THE
 PROPERTY MAY BE RECEIVING SHALL BE ADJUSTED AS NECESSARY TO ACCOUNT  FOR
 SUCH  REDUCTION  IN  THE  TOTAL  ASSESSED VALUE. TO THE EXTENT THE TOTAL
 ASSESSED VALUE OF THE PROPERTY ORIGINALLY APPEARING ON SUCH ROLL EXCEEDS
 THE AMOUNT TO WHICH IT SHOULD BE REDUCED PURSUANT TO THIS  SECTION,  THE
 EXCESS  SHALL  BE  CONSIDERED  AN  ERROR IN ESSENTIAL FACT AS DEFINED BY
 SUBDIVISION THREE OF SECTION FIVE HUNDRED FIFTY  OF  THIS  CHAPTER.  THE
 ASSESSOR  SHALL  THEREUPON  BE  AUTHORIZED  AND  DIRECTED TO CORRECT THE
 ASSESSMENT ROLL ACCORDINGLY OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL
 OF THE ASSESSMENT ROLL, TO DIRECT SUCH PERSON TO  MAKE  THE  APPROPRIATE
 CORRECTIONS. IF THE CORRECTION IS MADE AFTER TAXES ARE LEVIED BUT BEFORE
 SUCH  TAXES  ARE  PAID,  THE  COLLECTING OFFICER SHALL BE AUTHORIZED AND
 DIRECTED TO  CORRECT  THE  APPLICANT'S  TAX  BILL  ACCORDINGLY.  IF  THE
 CORRECTION IS MADE AFTER TAXES ARE PAID, THE AUTHORITIES OF EACH PARTIC-
 IPATING  MUNICIPAL CORPORATION SHALL BE AUTHORIZED AND DIRECTED TO ISSUE
 A REFUND IN THE AMOUNT OF THE EXCESS TAXES  PAID  WITH  REGARD  TO  SUCH
 PARTICIPATING MUNICIPAL CORPORATION.
   (F)  THE RIGHTS CONTAINED IN THIS SECTION SHALL NOT OTHERWISE DIMINISH
 ANY OTHER LEGALLY AVAILABLE RIGHT OF ANY PROPERTY OWNER OR PARTY WHO MAY
 OTHERWISE LAWFULLY CHALLENGE THE VALUATION OR  ASSESSMENT  OF  ANY  REAL
 PROPERTY  OR  IMPROVEMENTS THEREON.   ALL REMAINING RIGHTS HEREBY REMAIN
 AND SHALL BE AVAILABLE TO THE PARTY TO WHOM SUCH RIGHTS WOULD  OTHERWISE
 BE AVAILABLE NOTWITHSTANDING THIS SECTION.
   4. SCHOOL DISTRICTS HELD HARMLESS. EACH SCHOOL DISTRICT THAT IS WHOLLY
 OR  PARTIALLY CONTAINED WITHIN AN ELIGIBLE COUNTY SHALL BE HELD HARMLESS
 BY THE STATE FOR ANY REDUCTION IN STATE AID THAT WOULD HAVE BEEN PAID AS
 TAX SAVINGS PURSUANT TO SECTION THIRTEEN HUNDRED SIX-A OF  THIS  CHAPTER
 INCURRED DUE TO THE PROVISIONS OF THIS SECTION.
   5. BONDS AUTHORIZED. SERIAL BONDS AND, IN ADVANCE OF SUCH, BOND ANTIC-
 IPATION  NOTES  ARE  HEREBY  AUTHORIZED  PURSUANT TO SUBDIVISION THIRTY-
 THREE-E OF PARAGRAPH A OF  SECTION  11.00  OF  THE  LOCAL  FINANCE  LAW,
 PROVIDED,  HOWEVER,  THAT  ANY FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT
 FUNDING RECEIVED BY SUCH PARTICIPATING MUNICIPALITY, IN RELATION TO LOSS
 OF PROPERTY TAX FUNDING, SHALL FIRST BE USED TO DEFEASE, UPON  MATURITY,
 THE INTEREST AND PRINCIPAL OF ANY SUCH BOND OR NOTE SO OUTSTANDING.

 S. 1509--A                         19                         A. 2009--A
 
   §  2. Paragraph a of section 11.00 of the local finance law is amended
 by adding a new subdivision 33-e to read as follows:
   33-E.  REAL  PROPERTY TAX REFUNDS AND CREDITS. PAYMENTS OF EXEMPTIONS,
 REFUNDS, OR CREDITS FOR REAL PROPERTY TAX, SEWER AND WATER RENTS,  RATES
 AND  CHARGES  AND  ALL OTHER REAL PROPERTY TAXES TO BE MADE BY A MUNICI-
 PALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION AS A RESULT OF PROVIDING
 ASSESSMENT RELIEF IN A STATE DISASTER EMERGENCY PURSUANT TO SECTION FOUR
 HUNDRED NINETY-SEVEN OF THE REAL PROPERTY TAX LAW, TEN YEARS.
   § 3. This act shall take effect immediately.
 
                                 SUBPART B
 
   Section 1. Paragraph (b) of subdivision 1 of section 523 of  the  real
 property  tax  law,  as  amended  by chapter 223 of the laws of 1987, is
 amended to read as follows:
   (b) The board of assessment review shall  consist  of  not  less  than
 three  nor  more  than five members appointed by the legislative body of
 the local government or village OR AS PROVIDED BY  SUBDIVISION  FIVE  OF
 SECTION  FIFTEEN  HUNDRED  THIRTY-SEVEN  OF THIS CHAPTER, IF APPLICABLE.
 Members shall have a knowledge of property values in the  local  govern-
 ment or village. Neither the assessor nor any member of his or her staff
 may  be  appointed to the board of assessment review. A majority of such
 board shall consist of members who are not officers or employees of  the
 local government or village.
   §  2.  Subdivision  1 of section 1537 of the real property tax law, as
 added by chapter 512 of the laws of 1993, is amended and a new  subdivi-
 sion 5 is added to read as follows:
   1.  (a)  An  assessing unit and a county shall have the power to enter
 into, amend, cancel and terminate an agreement for  appraisal  services,
 exemption  services,  [or]  assessment  services,  OR  ASSESSMENT REVIEW
 SERVICES, in the manner provided by  this  section.  Such  an  agreement
 shall  be considered an agreement for the provision of a "joint service"
 for purposes of article five-G of the general  municipal  law,  notwith-
 standing  the  fact  that the county would not have the power to perform
 such services in the absence of such an agreement.
   (b) Any such agreement shall be approved by both  the  assessing  unit
 and  the  county,  by  a  majority  vote  of the voting strength of each
 governing body.
   (c) In the case of an assessing  unit,  no  such  agreement  shall  be
 submitted  to the governing body for approval unless at least forty-five
 days prior to such submission, the governing body shall have  adopted  a
 resolution,  subject to a permissive referendum, authorizing the assess-
 ing unit to negotiate such  an  agreement  with  the  county;  provided,
 however,  that  such  prior  authorization  shall not be required for an
 agreement to amend, cancel or terminate an existing  agreement  pursuant
 to this section.
   5.  AN AGREEMENT BETWEEN AN ASSESSING UNIT AND A COUNTY FOR ASSESSMENT
 REVIEW SERVICES SHALL PROVIDE FOR THE MEMBERS OF THE BOARD OF ASSESSMENT
 REVIEW OF THE ASSESSING UNIT TO BE APPOINTED BY THE LEGISLATIVE BODY  OF
 THE  COUNTY  UPON  THE RECOMMENDATION OF THE COUNTY DIRECTOR OF THE REAL
 PROPERTY TAX SERVICES. EACH MEMBER SO APPOINTED SHALL BE A  RESIDENT  OF
 THE  COUNTY  BUT NEED NOT BE A RESIDENT OF THE ASSESSING UNIT. THE BOARD
 OF ASSESSMENT REVIEW AS SO  CONSTITUTED  SHALL  HAVE  THE  AUTHORITY  TO
 RECEIVE,  REVIEW  AND  RESOLVE  PETITIONS FOR ASSESSMENT REVIEW FILED IN
 SUCH ASSESSING UNIT, AND FOR THE CORRECTIONS OF ERRORS THEREIN,  TO  THE
 FULL EXTENT SET FORTH IN ARTICLE FIVE OF THIS CHAPTER.

 S. 1509--A                         20                         A. 2009--A
 
   §  3.  Subdivision  1 of section 1408 of the real property tax law, as
 amended by chapter 473 of the laws  of  1984,  is  amended  to  read  as
 follows:
   1.  At the time and place and during the hours specified in the notice
 given pursuant to section fourteen hundred  six  of  this  chapter,  the
 board  of  review  shall meet to hear complaints relating to assessments
 brought before it. The board of trustees and assessors, or  a  committee
 of such board constituting at least a majority thereof and the assessors
 or  a  board  of  assessment review constituted pursuant to section five
 hundred twenty-three of this chapter, OR AS PROVIDED BY SUBDIVISION FIVE
 OF SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF  APPLICABLE,
 shall constitute the board of review.
   § 4. This act shall take effect immediately.
 
                                 SUBPART C
 
   Section  1. Subdivision 4 of section 318 of the real property tax law,
 as amended by chapter 527 of the laws of 1997 and as further amended  by
 subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
 2010, is amended to read as follows:
   4. Notwithstanding the provisions of this  subdivision  or  any  other
 law,  the  travel and other actual and necessary expenses incurred by an
 appointed or elected assessor, or by A PERSON APPOINTED ASSESSOR  FOR  A
 FORTHCOMING  TERM,  OR BY an assessor-elect prior to the commencement of
 his OR HER term, in satisfactorily completing  courses  of  training  as
 required  by  this  title  or as approved by the commissioner, including
 continuing education courses prescribed by the  commissioner  which  are
 satisfactorily  completed  by  any  elected  assessor,  shall be a state
 charge upon audit by the comptroller. Travel and other actual and neces-
 sary expenses incurred by an acting assessor who has been exercising the
 powers and duties of the assessor for a period of at least  six  months,
 in attending training courses no earlier than twelve months prior to the
 date  when courses of training and education are required, shall also be
 a state charge upon audit by the comptroller.   Candidates  for  certif-
 ication  as  eligible for the position of assessor, other than assessors
 or assessors-elect, shall be charged for the cost of training  materials
 and  shall  be  responsible  for  all  other  costs  incurred by them in
 connection with such training.  NOTWITHSTANDING THE FOREGOING PROVISIONS
 OF THIS SUBDIVISION, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED  THE
 COMMISSIONER  TO  APPROVE  THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES
 WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT
 WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND  THE  COMMIS-
 SIONER  HAS  AGREED  TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY
 EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE.
   § 2. Paragraph f of subdivision 3 of section 1530 of the real property
 tax law, as amended by chapter 361 of the laws of 1986  and  as  further
 amended  by  subdivision (b) of section 1 of part W of chapter 56 of the
 laws of 2010, is amended to read as follows:
   f.  Expenses  in  attending  training  courses.  Notwithstanding   the
 provisions  of  any other law, the travel and other actual and necessary
 expenses incurred by a director or a person  appointed  director  for  a
 forthcoming  term  in  attending courses of training as required by this
 subdivision or as approved by the commissioner shall be a  state  charge
 upon audit by the comptroller.  NOTWITHSTANDING THE FOREGOING PROVISIONS
 OF  THIS  PARAGRAPH,  IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE
 COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY,  SO  THAT  ATTENDEES

 S. 1509--A                         21                         A. 2009--A
 
 WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT
 WITHOUT  HAVING  THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS-
 SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER  ACTUAL  AND  NECESSARY
 EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE.
   § 3. This act shall take effect immediately.
 
                                 SUBPART D
 
   Section  1.  Section  104  of  the  real property tax law, as added by
 section 1 of part U of chapter 61 of the laws of  2011,  is  amended  to
 read as follows:
   § 104. Electronic real property tax administration. 1. Notwithstanding
 any provision of law to the contrary, the commissioner is hereby author-
 ized  to  establish  standards for electronic real property tax adminis-
 tration (E-RPT). Such standards shall set forth the terms and conditions
 under which the various tasks associated with real property tax adminis-
 tration may be executed electronically, dispensing  with  the  need  for
 paper documents. Such tasks shall include ANY OR ALL OF THE FOLLOWING:
   (a) The filing of exemption applications;
   (b) The filing of petitions for administrative review of assessments;
   (c) The filing of petitions for judicial review of assessments;
   (d)  The  filing  of  applications  for  administrative corrections of
 errors;
   (e) The issuance of statements of taxes;
   (f) The payment of taxes, subject to the provisions of  sections  five
 and five-b of the general municipal law;
   (g) The provision of receipts for the payment of taxes;
   (h)  The  issuance  of  taxpayer  notices  required  by law, including
 sections five hundred eight, five hundred ten, five hundred ten-a,  five
 hundred  eleven,  five  hundred twenty-five and five hundred fifty-one-a
 through five hundred fifty-six-b of this chapter; and
   (i) The furnishing of notices  and  certificates  under  this  chapter
 relating  to  state  equalization  rates, residential assessment ratios,
 special franchise assessments, railroad ceilings, taxable  state  lands,
 advisory  appraisals,  and  the  certification  of  assessors and county
 directors or real property tax services, SUBJECT TO  THE  PROVISIONS  OF
 SUBDIVISION FIVE OF THIS SECTION.
   2.  Such  standards  shall  be developed after consultation with local
 government officials, the office of court administration IN THE CASE  OF
 STANDARDS  RELATING TO PETITIONS FOR JUDICIAL REVIEW OF ASSESSMENTS, and
 the office of the state comptroller IN THE CASE OF STANDARDS RELATING TO
 PAYMENTS OR TAXES AND THE ISSUANCE OF RECEIPTS THEREFOR.
   3. (a) Taxpayers shall not be required to accept  notices,  statements
 of  taxes,  receipts  for the payment of taxes, or other documents elec-
 tronically unless they have  so  elected.  Taxpayers  who  have  not  so
 elected  shall  be  sent  such  communications  in  the manner otherwise
 provided by law.
   (b) [Assessors and other municipal officials shall not be required  to
 accept  and  respond  to  communications from the commissioner electron-
 ically.
   (c)] The governing board of any municipal corporation  may,  by  local
 law,  ordinance or resolution, determine that it is in the public inter-
 est for such municipal corporation to provide electronic  real  property
 tax administration. Upon adoption of such local law, ordinance or resol-
 ution,  such municipal corporation shall comply with standards set forth
 by the commissioner.

 S. 1509--A                         22                         A. 2009--A
 
   [(d)] (C) The standards prescribed by  the  commissioner  pursuant  to
 this section RELATING TO COMMUNICATIONS WITH TAXPAYERS shall provide for
 the  collection  of  electronic  contact  information,  such  as  e-mail
 addresses and/or social  network  usernames,  from  taxpayers  who  have
 elected  to  receive  electronic  communications  in accordance with the
 provisions of this section. Such information shall be exempt from public
 disclosure in accordance with section eighty-nine of the public officers
 law.
   4. When a document has been transmitted electronically  in  accordance
 with  the  provisions  of  this section and the standards adopted by the
 commissioner hereunder, it shall be deemed  to  satisfy  the  applicable
 legal  requirements  to the same extent as if it had been mailed via the
 United States postal service.
   5. (A) ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY,  WHENEVER  THE
 COMMISSIONER  IS OBLIGED BY LAW TO MAIL A NOTICE OF THE DETERMINATION OF
 A TENTATIVE STATE EQUALIZATION RATE, TENTATIVE SPECIAL FRANCHISE ASSESS-
 MENT, TENTATIVE ASSESSMENT CEILING OR OTHER TENTATIVE  DETERMINATION  OF
 THE  COMMISSIONER  THAT IS SUBJECT TO ADMINISTRATIVE REVIEW, THE COMMIS-
 SIONER SHALL BE AUTHORIZED TO FURNISH THE REQUIRED NOTICE BY E-MAIL,  OR
 BY  CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, OR BOTH, AT HIS
 OR HER DISCRETION.  WHEN PROVIDING NOTICE OF A  TENTATIVE  DETERMINATION
 BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, THE COMMISSIONER
 ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO
 INFORM  THEM  THAT THE NOTICE OF TENTATIVE DETERMINATION HAS BEEN POSTED
 ON THE WEBSITE. SUCH NOTICE OF  TENTATIVE  DETERMINATION  SHALL  NOT  BE
 DEEMED  COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT.  NOTWITHSTANDING ANY
 PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER SHALL NOT BE REQUIRED
 TO FURNISH SUCH NOTICES BY POSTAL MAIL, EXCEPT AS PROVIDED BY PARAGRAPHS
 (D) AND (E) OF THIS SUBDIVISION.
   (B) WHEN PROVIDING NOTICE OF A TENTATIVE DETERMINATION  BY  E-MAIL  OR
 POSTING  PURSUANT TO THIS SUBDIVISION, THE COMMISSIONER SHALL SPECIFY AN
 E-MAIL ADDRESS TO WHICH COMPLAINTS  REGARDING  SUCH  TENTATIVE  DETERMI-
 NATION  MAY  BE  SENT.  A  COMPLAINT THAT IS SENT TO THE COMMISSIONER BY
 E-MAIL TO THE SPECIFIED E-MAIL ADDRESS BY THE DATE PRESCRIBED BY LAW FOR
 THE MAILING OF SUCH COMPLAINTS SHALL BE DEEMED VALID TO THE SAME  EXTENT
 AS IF IT HAD BEEN SENT BY POSTAL MAIL.
   (C) WHEN A FINAL DETERMINATION IS MADE IN SUCH A MATTER, NOTICE OF THE
 FINAL  DETERMINATION  AND  ANY  CERTIFICATE  RELATING  THERETO  SHALL BE
 FURNISHED BY E-MAIL OR BY A WEBSITE POSTING, OR BOTH AT THE  COMMISSION-
 ER'S  DISCRETION,  AND  NEED  NOT  BE PROVIDED BY POSTAL MAIL, EXCEPT AS
 PROVIDED BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION.  WHEN  PROVIDING
 NOTICE  OF  A  FINAL  DETERMINATION BY WEBSITE POSTING, THE COMMISSIONER
 ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO
 INFORM THEM THAT THE NOTICE OF FINAL DETERMINATION HAS  BEEN  POSTED  ON
 THE  WEBSITE.  SUCH  NOTICE  OF  FINAL DETERMINATION SHALL NOT BE DEEMED
 COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT.
   (D) IF AN ASSESSOR HAS ADVISED THE COMMISSIONER IN WRITING THAT HE  OR
 SHE  PREFERS  TO  RECEIVE  THE  NOTICES DESCRIBED IN THIS SUBDIVISION BY
 POSTAL MAIL, THE COMMISSIONER SHALL THEREAFTER SEND SUCH NOTICES TO THAT
 ASSESSOR BY POSTAL MAIL, AND NEED NOT SEND SUCH NOTICES TO THAT ASSESSOR
 BY E-MAIL. THE COMMISSIONER SHALL PRESCRIBE A FORM  THAT  ASSESSORS  MAY
 USE TO ADVISE THE COMMISSIONER OF THEIR PREFERENCE FOR POSTAL MAIL.
   (E)  IF  THE  COMMISSIONER  LEARNS  THAT  AN E-MAIL ADDRESS TO WHICH A
 NOTICE HAS BEEN SENT PURSUANT TO THIS SUBDIVISION IS NOT VALID, AND  THE
 COMMISSIONER  CANNOT  FIND  A  VALID  E-MAIL ADDRESS FOR THAT PARTY, THE
 COMMISSIONER SHALL RESEND THE NOTICE TO THE PARTY BY POSTAL MAIL. IF THE

 S. 1509--A                         23                         A. 2009--A
 
 COMMISSIONER DOES NOT HAVE A VALID E-MAIL ADDRESS FOR THE PARTY  AT  THE
 TIME THE NOTICE IS INITIALLY REQUIRED TO BE SENT, THE COMMISSIONER SHALL
 SEND THE NOTICE TO THAT PARTY BY POSTAL MAIL.
   (F)  ON  OR  BEFORE  NOVEMBER  THIRTIETH,  TWO  THOUSAND NINETEEN, THE
 COMMISSIONER SHALL SEND A NOTICE BY POSTAL MAIL TO ASSESSORS,  TO  CHIEF
 EXECUTIVE  OFFICERS  OF  ASSESSING UNITS, AND TO OWNERS OF SPECIAL FRAN-
 CHISE PROPERTY AND RAILROAD PROPERTY, INFORMING THEM OF  THE  PROVISIONS
 OF  THIS  SECTION.    THE NOTICE TO BE SENT TO ASSESSORS SHALL INCLUDE A
 COPY OF THE FORM PRESCRIBED PURSUANT TO PARAGRAPH (D) OF  THIS  SUBDIVI-
 SION.
   (G)  AS  USED  IN  THIS SUBDIVISION, THE TERM "POSTAL MAIL" SHALL MEAN
 MAIL THAT IS PHYSICALLY DELIVERED TO THE ADDRESSEE BY THE UNITED  STATES
 POSTAL SERVICE.
   § 2. This act shall take effect immediately.
 
                                 SUBPART E
 
   Section  1. Subdivision 4 of section 302 of the real property tax law,
 as amended by chapter 348 of the laws of 2007, is  amended  to  read  as
 follows:
   4.  The  taxable  status of a special franchise shall be determined on
 the basis of its value and its ownership as of the first day  of  [July]
 JANUARY  of  the year preceding the year in which the assessment roll on
 which such property is to be assessed is  completed  and  filed  in  the
 office  of  the  city  or town clerk, except that taxable status of such
 properties shall be determined on the basis of ownership as of the first
 day of [July] JANUARY of the second year preceding the date required  by
 law  for  the  filing  of  the final assessment roll for purposes of all
 village assessment rolls.
   § 2. Subdivision 2 of section 606 of the real  property  tax  law,  as
 amended  by  chapter  743  of the laws of 2005 and as further amended by
 subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
 2010, is amended to read as follows:
   2. In any assessing unit which has completed a revaluation since nine-
 teen  hundred  fifty-three  or  which does not contain property that was
 assessed in nineteen hundred fifty-three, the commissioner shall  deter-
 mine  the full value of such special franchise as of the [valuation date
 of the assessing unit] TAXABLE STATUS DATE SPECIFIED BY SUBDIVISION FOUR
 OF SECTION THREE HUNDRED TWO OF THIS CHAPTER. Such full value  shall  be
 determined  by  the  commissioner  for  purposes of sections six hundred
 eight, six hundred fourteen and six hundred  sixteen  of  this  article.
 These  full  values shall be entered on the assessment roll at the level
 of assessment, which shall  be  the  uniform  percentage  of  value,  as
 required  by  section five hundred two of this chapter, appearing on the
 tentative assessment roll upon which the assessment is entered. Whenever
 a final state equalization rate, or, in the case of a special  assessing
 unit, a class equalization rate, is established that is different from a
 level of assessment applied pursuant to this paragraph, any public offi-
 cial  having  custody  of  that assessment roll is hereby authorized and
 directed to recompute these assessments  to  reflect  that  equalization
 rate,  provided  such  final  rate is established by the commissioner at
 least ten days prior to the date for levy of taxes against those assess-
 ments.
   § 3. This act shall take effect January 1, 2020.
 
                                 SUBPART F

 S. 1509--A                         24                         A. 2009--A
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 575-a to read as follows:
   §  575-A. ELECTRIC GENERATING FACILITY ANNUAL REPORTS. 1. EVERY CORPO-
 RATION, COMPANY, ASSOCIATION, JOINT STOCK ASSOCIATION,  PARTNERSHIP  AND
 PERSON,  THEIR  LESSEES,  TRUSTEES  OR  RECEIVERS APPOINTED BY ANY COURT
 WHATSOEVER, OWNING, OPERATING OR MANAGING ANY ELECTRIC GENERATING FACIL-
 ITY IN THE STATE SHALL ANNUALLY FILE WITH  THE  COMMISSIONER,  BY  APRIL
 THIRTIETH, A REPORT SHOWING THE INVENTORY, REVENUE, AND EXPENSES ASSOCI-
 ATED  THEREWITH FOR THE MOST RECENT FISCAL YEAR. SUCH REPORT SHALL BE IN
 THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER.
   2. WHEN USED IN THIS SECTION,  "ELECTRIC  GENERATING  FACILITY"  SHALL
 MEAN ANY FACILITY THAT GENERATES ELECTRICITY FOR SALE, DIRECTLY OR INDI-
 RECTLY,  TO  THE  PUBLIC,  INCLUDING THE LAND UPON WHICH THE FACILITY IS
 LOCATED, ANY EQUIPMENT USED IN SUCH GENERATION,  AND  EQUIPMENT  LEADING
 FROM  THE FACILITY TO THE INTERCONNECTION WITH THE ELECTRIC TRANSMISSION
 SYSTEM, BUT SHALL NOT INCLUDE:
   (A) ANY EQUIPMENT IN THE ELECTRIC TRANSMISSION SYSTEM; AND
   (B) ANY ELECTRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A  RESIDEN-
 TIAL  CUSTOMER  OF  AN  ELECTRIC GENERATING FACILITY, INCLUDING THE LAND
 UPON WHICH THE EQUIPMENT IS LOCATED, WHEN LOCATED AND USED AT HIS OR HER
 RESIDENCE.
   3. EVERY ELECTRIC GENERATING  FACILITY  OWNER,  OPERATOR,  OR  MANAGER
 FAILING  TO MAKE THE REPORT REQUIRED BY THIS SECTION, OR FAILING TO MAKE
 ANY REPORT REQUIRED BY THE COMMISSIONER PURSUANT TO THIS SECTION  WITHIN
 THE  TIME  SPECIFIED BY IT, SHALL FORFEIT TO THE PEOPLE OF THE STATE THE
 SUM OF TEN THOUSAND DOLLARS FOR EVERY SUCH FAILURE  AND  THE  ADDITIONAL
 SUM OF ONE THOUSAND DOLLARS FOR EACH DAY THAT SUCH FAILURE CONTINUES.
   § 2. This act shall take effect January 1, 2020.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or subpart of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or  subpart  thereof  directly involved in the controversy in which such
 judgment shall have been rendered. It  is  hereby  declared  to  be  the
 intent  of the legislature that this act would have been enacted even if
 such invalid provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the applicable effective date of Subparts A through F of this Part shall
 be as specifically set forth in the last section of such Subparts.
 
                                  PART K
 
   Section  1.  Section  3-d  of  the  general municipal law, as added by
 section 2 of part E of chapter 59 of the laws of 2018, is REPEALED.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 12, 2018.
 
                                  PART L
 
   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:
   § 44. EMPLOYER-PROVIDED CHILD CARE CREDIT.  (A)  GENERAL.  A  TAXPAYER
 SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS
 CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN AMOUNT EQUAL TO
 THE  PORTION OF THE CREDIT THAT IS ALLOWED TO THE TAXPAYER UNDER SECTION

 S. 1509--A                         25                         A. 2009--A
 
 45F OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE TO  (I)  QUALIFIED
 CHILD  CARE  EXPENDITURES  PAID  OR INCURRED WITH RESPECT TO A QUALIFIED
 CHILD CARE FACILITY WITH A SITUS IN THE STATE,  AND  TO  (II)  QUALIFIED
 CHILD  CARE  RESOURCE  AND  REFERRAL  EXPENDITURES PAID OR INCURRED WITH
 RESPECT TO THE TAXPAYER'S EMPLOYEES WORKING IN  THE  STATE.  THE  CREDIT
 ALLOWABLE  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT EXCEED
 ONE HUNDRED FIFTY THOUSAND DOLLARS. IF THE ENTITY OPERATING  THE  QUALI-
 FIED  CHILD  CARE FACILITY IS A PARTNERSHIP OR A NEW YORK S CORPORATION,
 THEN SUCH CAP SHALL BE APPLIED AT THE ENTITY  LEVEL,  SO  THE  AGGREGATE
 CREDIT  ALLOWED  TO ALL THE PARTNERS OR SHAREHOLDERS OF SUCH ENTITY IN A
 TAXABLE YEAR DOES NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS.
   (B) CREDIT RECAPTURE. IF THERE IS A CESSATION OF OPERATION  OR  CHANGE
 IN  OWNERSHIP,  AS  DEFINED  BY SECTION 45F OF THE INTERNAL REVENUE CODE
 RELATING TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN  THE  STATE,
 THE  TAXPAYER  SHALL ADD BACK THE APPLICABLE RECAPTURE PERCENTAGE OF THE
 CREDIT ALLOWED UNDER THIS  SECTION  IN  ACCORDANCE  WITH  THE  RECAPTURE
 PROVISIONS  OF  SECTION 45F OF THE INTERNAL REVENUE CODE, BUT THE RECAP-
 TURE AMOUNT SHALL BE LIMITED TO THE CREDIT ALLOWED UNDER THIS SECTION.
   (C) REPORTING REQUIREMENTS. A TAXPAYER THAT HAS CLAIMED A CREDIT UNDER
 THIS SECTION SHALL NOTIFY THE COMMISSIONER OF ANY  CESSATION  OF  OPERA-
 TION, CHANGE IN OWNERSHIP, OR AGREEMENT TO ASSUME RECAPTURE LIABILITY AS
 SUCH  TERMS  ARE DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE, IN
 THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER.
   (D) DEFINITIONS. THE TERMS "QUALIFIED CHILD CARE EXPENDITURES", "QUAL-
 IFIED CHILD CARE FACILITY", "QUALIFIED CHILD CARE RESOURCE AND  REFERRAL
 EXPENDITURE",  "CESSATION  OF  OPERATION",  "CHANGE  OF  OWNERSHIP", AND
 "APPLICABLE RECAPTURE PERCENTAGE" SHALL HAVE THE  SAME  MEANINGS  AS  IN
 SECTION 45F OF THE INTERNAL REVENUE CODE.
   (E)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53;
   (2) ARTICLE 22: SECTION 606(I), SUBSECTIONS (I) AND (JJJ);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 53 to read as follows:
   53.  EMPLOYER-PROVIDED  CHILD  CARE CREDIT. (A) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
 SECTION  FORTY-FOUR  OF  THIS  CHAPTER,  AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
   (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
 THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
 SECTION  TWO  HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF THE
 CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
 TAX  TO  SUCH  AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE
 FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN
 SUCH TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
 EIGHTY-SIX OF THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (C) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING  RECAPTURE  OF  CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
 follows:

 S. 1509--A                         26                         A. 2009--A
 
 (XLIV) EMPLOYER-PROVIDED CHILD       AMOUNT OF CREDIT UNDER SUBDIVISION
 CARE CREDIT (JJJ)                    FIFTY-THREE OF SECTION TWO HUNDRED
                                      TEN-B
   §  4. Section 606 of the tax law is amended by adding a new subsection
 (jjj) to read as follows:
   (JJJ) EMPLOYER-PROVIDED CHILD CARE CREDIT. (1) ALLOWANCE OF CREDIT.  A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FORTY-FOUR OF THIS CHAPTER, AGAINST  THE  TAX  IMPOSED  BY  THIS
 ARTICLE.
   (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
 OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX  HUNDRED
 EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
 PAID THEREON.
   (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING  RECAPTURE  OF  CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   §  5.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) EMPLOYER-PROVIDED CHILD CARE CREDIT. (1) ALLOWANCE OF  CREDIT.  A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FORTY-FOUR OF THIS CHAPTER, AGAINST  THE  TAX  IMPOSED  BY  THIS
 ARTICLE.
   (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN  THE  MINIMUM
 FIXED  BY  PARAGRAPH  FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED
 TWO OR SECTION FIFTEEN HUNDRED  TWO-A  OF  THIS  ARTICLE,  WHICHEVER  IS
 APPLICABLE.  HOWEVER,  IF  THE  AMOUNT  OF THE CREDIT ALLOWED UNDER THIS
 SUBDIVISION FOR ANY TAXABLE YEAR REDUCES  THE  TAXPAYER'S  TAX  TO  SUCH
 AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN
 OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
 PROVISIONS   OF   SECTION  ONE  THOUSAND  EIGHTY-SIX  OF  THIS  CHAPTER.
 PROVIDED, HOWEVER, THE PROVISIONS OF  SUBSECTION  (C)  OF  ONE  THOUSAND
 EIGHTY-EIGHT  OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID
 THEREON.
   (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING  RECAPTURE  OF  CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER
   §  6. This act shall take effect immediately and apply to years begin-
 ning on or after January 1, 2020.
 
                                  PART M
 
   Section 1. Paragraph 1 of subsection (b) of section 631 of the tax law
 is amended by adding a new subparagraph (D-1) to read as follows:
   (D-1) GAMBLING WINNINGS IN EXCESS OF FIVE THOUSAND DOLLARS FROM WAGER-
 ING TRANSACTIONS WITHIN THE STATE; OR
   § 2. Paragraph 2 of subsection (b) of section 671 of the  tax  law  is
 amended by adding a new subparagraph (E) to read as follows:
   (E)  ANY  GAMBLING  WINNINGS  FROM  A WAGERING TRANSACTION WITHIN THIS
 STATE, IF THE PROCEEDS FROM THE WAGER ARE SUBJECT TO  WITHHOLDING  UNDER
 SECTION THREE THOUSAND FOUR HUNDRED TWO OF THE INTERNAL REVENUE CODE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years  beginning on or after January 1, 2019; provided, however that the
 amendments to subsection (b) of section 671  of  the  tax  law  made  by
 section  two  of  this  act  shall  not  affect  the  expiration of such
 subsection and shall be deemed to expire therewith.

 S. 1509--A                         27                         A. 2009--A
 
                                  PART N
 
   Section  1.  Subdivision (c) of section 42 of the tax law, as added by
 section 1 of part RR of chapter 60 of the laws of 2016,  is  amended  to
 read as follows:
   (c)  For  purposes  of  this [subdivision] SECTION, the term "eligible
 farmer" means a taxpayer whose federal  gross  income  from  farming  AS
 DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER for
 the  taxable year is at least two-thirds of excess federal gross income.
 Excess federal gross income means the amount  of  federal  gross  income
 from  all  sources  for  the  taxable  year in excess of thirty thousand
 dollars. For [the] purposes of this [subdivision] SECTION, payments from
 the state's farmland protection program, administered by the  department
 of  agriculture  and  markets, shall be included as federal gross income
 from farming for otherwise eligible farmers.
   § 2. Section 42 of the tax law is amended by adding a new  subdivision
 (d-1) to read as follows:
   (D-1) SPECIAL RULES. IF MORE THAN FIFTY PERCENT OF SUCH ELIGIBLE FARM-
 ER'S  FEDERAL  GROSS INCOME FROM FARMING IS FROM THE SALE OF WINE FROM A
 LICENSED FARM WINERY AS PROVIDED FOR IN ARTICLE  SIX  OF  THE  ALCOHOLIC
 BEVERAGE  CONTROL  LAW,  OR  FROM THE SALE OF CIDER FROM A LICENSED FARM
 CIDERY AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC  BEVER-
 AGE  CONTROL LAW, THEN AN ELIGIBLE FARM EMPLOYEE OF SUCH ELIGIBLE FARMER
 SHALL BE INCLUDED FOR PURPOSES  OF  CALCULATING  THE  AMOUNT  OF  CREDIT
 ALLOWED  UNDER  THIS  SECTION  ONLY  IF  SUCH  ELIGIBLE FARM EMPLOYEE IS
 EMPLOYED BY SUCH ELIGIBLE FARMER ON QUALIFIED AGRICULTURAL  PROPERTY  AS
 DEFINED  IN  PARAGRAPH FOUR OF SUBSECTION (N) OF SECTION SIX HUNDRED SIX
 OF THIS CHAPTER.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.
 
                                  PART O

   Section 1. Section 12 of part N of chapter 61 of  the  laws  of  2005,
 amending the tax law relating to certain transactions and related infor-
 mation  and  relating to the voluntary compliance initiative, as amended
 by section 1 of part M of chapter 60 of the laws of 2016, is amended  to
 read as follows:
   §  12. This act shall take effect immediately; provided, however, that
 (i) section one of this act shall apply  to  all  disclosure  statements
 described  in  paragraph  1  of subdivision (a) of section 25 of the tax
 law, as added by section one of this act, that were required to be filed
 with the internal revenue service at any time with  respect  to  "listed
 transactions"  as  described in such paragraph 1, and shall apply to all
 disclosure statements described in paragraph 1  of  subdivision  (a)  of
 section  25  of  the  tax law, as added by section one of this act, that
 were required to be filed with the internal revenue service with respect
 to "reportable transactions" as described in  such  paragraph  1,  other
 than  "listed transactions", in which a taxpayer participated during any
 taxable year for which the statute of limitations for assessment has not
 expired as of the date this act shall take effect, and  shall  apply  to
 returns or statements described in such paragraph 1 required to be filed
 by  taxpayers  (or  persons  as  described  in  such paragraph) with the
 commissioner of taxation and finance on or after the sixtieth day  after
 this act shall have become a law; and

 S. 1509--A                         28                         A. 2009--A
 
   (ii)  sections  two  through  four  and seven through nine of this act
 shall apply to any tax liability for which the statute of limitations on
 assessment has not expired as of the date this act shall  take  effect[;
 and
   (iii)  provided,  further,  that  the  provisions  of this act, except
 section five of this act, shall expire and be deemed  repealed  July  1,
 2019;  provided,  that,  such expiration and repeal shall not affect any
 requirement imposed pursuant to this act].
   § 2. Subsection (aa) of section 685 of the tax law is REPEALED  and  a
 new subsection (aa) is added to read as follows:
   (AA)  TAX  PREPARER  PENALTY.--  (1)  IF A TAX RETURN PREPARER TAKES A
 POSITION ON ANY INCOME TAX RETURN  OR  CREDIT  CLAIM  FORM  THAT  EITHER
 UNDERSTATES  THE  TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND, AND
 THE PREPARER KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT  SAID  POSITION
 WAS  NOT  PROPER,  AND SUCH POSITION WAS NOT ADEQUATELY DISCLOSED ON THE
 RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPAR-
 ER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS.
   (2) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN
 OR CREDIT CLAIM FORM  THAT  EITHER  UNDERSTATES  THE  TAX  LIABILITY  OR
 INCREASES  THE  CLAIM  FOR  A  REFUND  AND THE UNDERSTATEMENT OF THE TAX
 LIABILITY OR THE INCREASED CLAIM FOR REFUND IS  DUE  TO  THE  PREPARER'S
 RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH
 PREPARER  SHALL  PAY A PENALTY OF BETWEEN FIVE HUNDRED AND FIVE THOUSAND
 DOLLARS. THE AMOUNT OF THE PENALTY PAYABLE BY ANY PERSON  BY  REASON  OF
 THIS  PARAGRAPH  SHALL  BE  REDUCED BY THE AMOUNT OF THE PENALTY PAID BY
 SUCH PERSON BY REASON OF PARAGRAPH ONE OF THIS SUBSECTION.
   (3) FOR PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT  OF  TAX
 LIABILITY"  MEANS  ANY  UNDERSTATEMENT  OF  THE  NET AMOUNT PAYABLE WITH
 RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR  ANY  OVERSTATEMENT  OF
 THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX.
   (4)  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARED"
 SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE  OF  SUBSECTION
 (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE.
   (5)  THIS  SUBSECTION  SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION
 (R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER  WITH  RESPECT
 TO SUCH UNDERSTATEMENT.
   § 3. Subsection (u) of section 685 of the tax law is amended by adding
 three new paragraphs (1), (2), and (6) to read as follows:
   (1)  FAILURE  TO  SIGN  RETURN  OR  CLAIM  FOR REFUND. IF A TAX RETURN
 PREPARER WHO IS REQUIRED PURSUANT TO PARAGRAPH ONE OF SUBSECTION (G)  OF
 SECTION  SIX  HUNDRED  FIFTY-EIGHT  OF  THIS ARTICLE TO SIGN A RETURN OR
 CLAIM FOR REFUND FAILS TO COMPLY WITH SUCH REQUIREMENT WITH  RESPECT  TO
 SUCH  RETURN  OR  CLAIM  FOR  REFUND,  THE  TAX RETURN PREPARER SHALL BE
 SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH  FAILURE
 TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE
 AND  NOT  DUE TO WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS
 PARAGRAPH ON ANY TAX RETURN  PREPARER  WITH  RESPECT  TO  RETURNS  FILED
 DURING  ANY CALENDAR YEAR BY THE TAX RETURN PREPARER MUST NOT EXCEED TEN
 THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT IF A TAX RETURN  PREPARER  HAS
 BEEN  PENALIZED  UNDER  THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND
 AGAIN FAILS TO SIGN HIS OR HER NAME ON ANY RETURN THAT REQUIRES THE  TAX
 RETURN  PREPARER'S SIGNATURE DURING A SUBSEQUENT CALENDAR YEAR, THEN THE
 PENALTY UNDER THIS PARAGRAPH FOR  EACH  FAILURE  WILL  BE  FIVE  HUNDRED
 DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF
 THE  PENALTY  UNDER PARAGRAPH THREE OF SUBSECTION (G) OF SECTION THIRTY-

 S. 1509--A                         29                         A. 2009--A
 
 TWO OF THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER  WITH  RESPECT
 TO SUCH RETURN OR CLAIM FOR REFUND.
   (2)  FAILURE  TO  FURNISH IDENTIFYING NUMBER. IF A TAX RETURN PREPARER
 FAILS TO INCLUDE ANY IDENTIFYING NUMBER REQUIRED TO BE INCLUDED  ON  ANY
 RETURN  OR  CLAIM FOR REFUND PURSUANT TO PARAGRAPH TWO OF SUBSECTION (G)
 OF SECTION SIX HUNDRED FIFTY-EIGHT  OF  THIS  ARTICLE,  THE  TAX  RETURN
 PREPARER  SHALL  BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS FOR EACH
 SUCH FAILURE, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO  REASONABLE
 CAUSE  AND  NOT WILLFUL NEGLECT.  THE MAXIMUM PENALTY IMPOSED UNDER THIS
 PARAGRAPH ON ANY TAX RETURN  PREPARER  WITH  RESPECT  TO  RETURNS  FILED
 DURING  ANY  CALENDAR  YEAR  MUST  NOT  EXCEED TWO THOUSAND FIVE HUNDRED
 DOLLARS; PROVIDED, HOWEVER, THAT IF  A  TAX  RETURN  PREPARER  HAS  BEEN
 PENALIZED  UNDER  THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN
 FAILS TO INCLUDE THE IDENTIFYING NUMBER ON ONE OR MORE RETURNS DURING  A
 SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH
 FAILURE WILL BE TWO HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY.
 THIS  PARAGRAPH  SHALL  NOT APPLY IF THE PENALTY UNDER PARAGRAPH FOUR OF
 SUBSECTION (G) OF SECTION THIRTY-TWO OF THIS CHAPTER IS IMPOSED  ON  THE
 TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND.
   (6)  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARER"
 SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE  OF  SUBSECTION
 (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE.
   §  4.  This act shall take effect immediately; provided, however, that
 the amendments to subsection (u) of section 685 of the tax law  made  by
 section three of this act shall apply to tax documents filed or required
 to be filed for taxable years beginning on or after January 1, 2019.
 
                                  PART P
 
   Section  1.  Clauses  (iii), (iv), (v), (vi) and (vii) of subparagraph
 (B) of paragraph 1 of subsection (a) of section 601 of the tax  law,  as
 added  by  section  1  of  part R of chapter 59 of the laws of 2017, are
 amended to read as follows:
   (iii) For taxable years beginning in two thousand twenty the following
 rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
                                       $27,900
 Over $43,000 but not over $161,550    $2,093 plus 6.09% of excess over
                                       $43,000
 Over $161,550 but not over $323,200   $9,313 plus 6.41% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $19,674 plus 6.85% of excess
 $2,155,350                            $323,200 over
 OVER $2,155,350                       $145,177 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (iv) For taxable  years  beginning  in  two  thousand  twenty-one  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over

 S. 1509--A                         30                         A. 2009--A
 
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
                                       $27,900
 Over $43,000 but not over $161,550    $2,093 plus 5.97% of excess over
                                       $43,000
 Over $161,550 but not over $323,200   $9,170 plus 6.33% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $19,403 plus 6.85% of excess
 $2,155,350                            over  $323,200
 OVER $2,155,350                       $144,905 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (v) For taxable years beginning in two thousand twenty-two the follow-
 ing rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,202 plus 5.85% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $9,021 plus 6.25% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER $2,155,350 $19,124 plus
                                       6.85% of excess over $323,200
 OVER $2,155,350                       $144,626 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (vi)  For  taxable  years  beginning  in two thousand twenty-three the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,202 plus 5.73% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $8,860 plus 6.17% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $18,834 plus 6.85% of
 $2,155,350                            excess over $323,200
 OVER $2,155,350                       $144,336 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (vii) For taxable years beginning  in  two  thousand  twenty-four  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,202 plus 5.61% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $8,700 plus 6.09% of excess over

 S. 1509--A                         31                         A. 2009--A
 
                                       $161,550
 Over $323,200 BUT NOT OVER            $18,544 plus 6.85% of
 $2,155,350                            excess over $323,200
 OVER $2,155,350                       $144,047 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   §  2.  Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of
 paragraph 1 of subsection (b) of section 601 of the tax law, as added by
 section 2 of part R of chapter 59 of the laws of 2017,  are  amended  to
 read as follows:
   (iii) For taxable years beginning in two thousand twenty the following
 rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $32,200     $901 plus 5.9% of excess over $20,900
 Over $32,200 but not over $107,650    $1,568 plus 6.09% of excess over
                                       $32,200
 Over $107,650 but not over $269,300   $6,162 plus 6.41% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $16,524 plus 6.85% of
 $1,616,450                            excess over $269,300
 OVER $1,616,450                       $108,804 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $32,200     $901 plus 5.9% of excess over
                                       $20,900
 Over $32,200 but not over $107,650    $1,568 plus 5.97% of excess over
                                       $32,200
 Over $107,650 but not over $269,300   $6,072 plus 6.33% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER             $16,304 plus 6.85% of
 $1,616,450                            excess over $269,300
 OVER $1,616,450                       $108,584 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (v) For taxable years beginning in two thousand twenty-two the follow-
 ing rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $107,650    $901 plus 5.85% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,976 plus 6.25% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $16,079 plus 6.85% of excess

 S. 1509--A                         32                         A. 2009--A
 
 $1,616,450                            over $269,300
 OVER $1,616,450                       $108,359 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (vi)  For  taxable  years  beginning  in two thousand twenty-three the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $107,650    $901 plus 5.73% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,872 plus 6.17% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $15,845 plus 6.85% of excess
 $1,616,450                            over $269,300
 OVER $1,616,450                       $108,125 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (vii) For taxable years beginning  in  two  thousand  twenty-four  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $107,650    $901 plus 5.61% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,768 plus 6.09% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $15,612 plus 6.85% of excess
 $1,616,450                            over $269,300
 OVER $1,616,450                       $107,892 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   §  3.  Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of
 paragraph 1 of subsection (c) of section 601 of the tax law, as added by
 section 3 of part R of chapter 59 of the laws of  2017,  is  amended  to
 read as follows:
   (iii) For taxable years beginning in two thousand twenty the following
 rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
                                       $13,900
 Over $21,400 but not over $80,650     $1,042 plus 6.09% of excess over
                                       $21,400
 Over $80,650 but not over $215,400    $4,650 plus 6.41% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $13,288 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550                       $72,345 PLUS 8.82% OF EXCESS OVER

 S. 1509--A                         33                         A. 2009--A
 
                                       $1,077,550
   (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
                                       $13,900
 Over $21,400 but not over $80,650     $1,042 plus 5.97% of excess over
                                       $21,400
 Over $80,650 but not over $215,400    $4,579 plus 6.33% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $13,109 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550                       $72,166 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (v) For taxable years beginning in two thousand twenty-two the follow-
 ing rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $80,650     $600 plus 5.85% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,504 plus 6.25% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $12,926 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550                       $71,984 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (vi) For taxable years beginning  in  two  thousand  twenty-three  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $80,650     $600 plus 5.73% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,424 plus 6.17% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $12,738 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550                       $71,796 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (vii)  For  taxable  years  beginning  in two thousand twenty-four the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over

 S. 1509--A                         34                         A. 2009--A
 
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $80,650     $600 plus 5.61% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,344 plus 6.09% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $12,550 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550                       $71,608 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   §  4.  Subparagraph  (D) of paragraph 1 of subsection (d-1) of section
 601 of the tax law, as amended by section 4 of part R of chapter  59  of
 the laws of 2017, is amended to read as follows:
   (D)  The tax table benefit is the difference between (i) the amount of
 taxable income set forth in the tax table in paragraph one of subsection
 (a) of this section not subject to the 8.82 percent rate of tax for  the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for  such amount of taxable income set forth in the tax table applicable
 to the taxable year in paragraph one of subsection (a) of  this  section
 less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
 of  this  paragraph.  The  fraction for this subparagraph is computed as
 follows: the numerator is the lesser of fifty thousand  dollars  or  the
 excess  of  New York adjusted gross income for the taxable year over two
 million dollars and the denominator  is  fifty  thousand  dollars.  This
 subparagraph  shall  apply  only  to taxable years beginning on or after
 January first, two thousand twelve and before January first,  two  thou-
 sand [twenty] TWENTY-FIVE.
   §  5.  Subparagraph  (C) of paragraph 2 of subsection (d-1) of section
 601 of the tax law, as amended by section 5 of part R of chapter  59  of
 the laws of 2017, is amended to read as follows:
   (C)  The tax table benefit is the difference between (i) the amount of
 taxable income set forth in the tax table in paragraph one of subsection
 (b) of this section not subject to the 8.82 percent rate of tax for  the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for  such amount of taxable income set forth in the tax table applicable
 to the taxable year in paragraph one of subsection (b) of  this  section
 less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
 this paragraph. The  fraction  for  this  subparagraph  is  computed  as
 follows:  the  numerator  is the lesser of fifty thousand dollars or the
 excess of New York adjusted gross income for the taxable year  over  one
 million five hundred thousand dollars and the denominator is fifty thou-
 sand dollars. This subparagraph shall apply only to taxable years begin-
 ning  on  or after January first, two thousand twelve and before January
 first, two thousand [twenty] TWENTY-FIVE.
   § 6. Subparagraph (C) of paragraph 3 of subsection  (d-1)  of  section
 601  of  the tax law, as amended by section 6 of part R of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (C) The tax table benefit is the difference between (i) the amount  of
 taxable income set forth in the tax table in paragraph one of subsection
 (c)  of this section not subject to the 8.82 percent rate of tax for the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for such amount of taxable income set forth in the tax table  applicable
 to  the  taxable year in paragraph one of subsection (c) of this section
 less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
 this  paragraph.  The  fraction  for  this  subparagraph  is computed as

 S. 1509--A                         35                         A. 2009--A
 
 follows: the numerator is the lesser of fifty thousand  dollars  or  the
 excess  of  New York adjusted gross income for the taxable year over one
 million dollars and the denominator  is  fifty  thousand  dollars.  This
 subparagraph  shall  apply  only  to taxable years beginning on or after
 January first, two thousand twelve and before January first,  two  thou-
 sand [twenty] TWENTY-FIVE.
   § 7. This act shall take effect immediately.
 
                                  PART Q
 
   Section 1. Subsection (g) of section 615 of the tax law, as amended by
 section  1  of  part  S of chapter 59 of the laws of 2017, is amended to
 read as follows:
   (g) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, THE NEW YORK ITEM-
 IZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT  ALLOWED
 UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS MODI-
 FIED  BY PARAGRAPH NINE OF SUBSECTION (C) OF THIS SECTION AND AS LIMITED
 BY THIS SUBSECTION. (1) With respect to an  individual  whose  New  York
 adjusted  gross  income is over one million dollars and no more than ten
 million dollars, the New York itemized  deduction  shall  be  an  amount
 equal  to fifty percent of any charitable contribution deduction allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble years beginning after two thousand  nine  and  before  two  thousand
 [twenty]  TWENTY-FIVE.  With  respect  to  an  individual whose New York
 adjusted gross income is over one million dollars, the New York itemized
 deduction shall be an amount equal to fifty percent  of  any  charitable
 contribution  deduction allowed under section one hundred seventy of the
 internal revenue code for taxable years beginning in two  thousand  nine
 or after two thousand [nineteen] TWENTY-FOUR.
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount  equal  to  twenty-five  percent  of  any charitable contribution
 deduction allowed under section one  hundred  seventy  of  the  internal
 revenue  code  for  taxable  years beginning after two thousand nine and
 ending before two thousand [twenty] TWENTY-FIVE.
   § 2. Subdivision (g) of section 11-1715 of the administrative code  of
 the city of New York, as amended by section 2 of part S of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (g) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, THE CITY ITEMIZED
 DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER
 SECTION  ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS LIMITED BY
 THIS SUBDIVISION. (1) With respect  to  an  individual  whose  New  York
 adjusted  gross  income is over one million dollars but no more than ten
 million dollars, the New York itemized  deduction  shall  be  an  amount
 equal  to fifty percent of any charitable contribution deduction allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble years beginning after two thousand  nine  and  before  two  thousand
 [twenty]  TWENTY-FIVE.  With  respect  to  an  individual whose New York
 adjusted gross income is over one million dollars, the New York itemized
 deduction shall be an amount equal to fifty percent  of  any  charitable
 contribution  deduction allowed under section one hundred seventy of the
 internal revenue code for taxable years beginning in two  thousand  nine
 or after two thousand [nineteen] TWENTY-FOUR.
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount  equal  to  twenty-five  percent  of  any charitable contribution

 S. 1509--A                         36                         A. 2009--A
 
 deduction allowed under section one  hundred  seventy  of  the  internal
 revenue  code  for  taxable  years beginning after two thousand nine and
 ending before two thousand [twenty] TWENTY-FIVE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART R
 
   Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax
 law,  as  amended by chapter 315 of the laws of 2017, is amended to read
 as follows:
   (a) General. A taxpayer shall be allowed  a  credit  against  the  tax
 imposed  by  this  article.  Such  credit, to be computed as hereinafter
 provided, shall be allowed for bioheating fuel, used for  space  heating
 or  hot  water  production  for  residential  purposes within this state
 purchased before January first, two thousand [twenty] TWENTY-THREE. Such
 credit shall be $0.01 per percent of biodiesel per gallon of  bioheating
 fuel, not to exceed twenty cents per gallon, purchased by such taxpayer.
 Provided,  however,  that on or after January first, two thousand seven-
 teen, this credit shall not apply to bioheating fuel that is  less  than
 six percent biodiesel per gallon of bioheating fuel.
   § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as
 amended  by  chapter  315  of  the  laws  of 2017, is amended to read as
 follows:
   (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
 this article. Such credit, to be computed as hereinafter provided, shall
 be  allowed  for  bioheating  fuel,  used for space heating or hot water
 production for residential purposes within this state and  purchased  on
 or  after  July first, two thousand six and before July first, two thou-
 sand seven and on or after January first, two thousand eight and  before
 January  first, two thousand [twenty] TWENTY-THREE. Such credit shall be
 $0.01 per percent of biodiesel per gallon of  bioheating  fuel,  not  to
 exceed  twenty  cents  per gallon, purchased by such taxpayer. Provided,
 however, that on or after January first, two  thousand  seventeen,  this
 credit  shall not apply to bioheating fuel that is less than six percent
 biodiesel per gallon of bioheating fuel.
   § 3. This act shall take effect immediately.
 
                                  PART S
 
   Section 1. Subdivision (e) of section 23 of the part U of  chapter  61
 of  the  laws of 2011, amending the real property tax law and other laws
 relating to establishing standards for electronic tax administration  is
 REPEALED.
   § 2. This act shall take effect immediately.

                                  PART T
 
   Section 1. Subdivision 3 of section 77 of the cooperative corporations
 law,  as  amended by chapter 429 of the laws of 1992, is amended to read
 as follows:
   3. Such annual fee shall  be  paid  for  each  calendar  year  on  the
 fifteenth  day  of March next succeeding the close of such calendar year
 BUT SHALL NOT BE PAYABLE  AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWENTY;
 PROVIDED,  HOWEVER,  THAT COOPERATIVE CORPORATIONS DESCRIBED IN SUBDIVI-
 SIONS ONE OR TWO OF THIS SECTION SHALL CONTINUE TO NOT BE SUBJECT TO THE

 S. 1509--A                         37                         A. 2009--A
 
 FRANCHISE, LICENSE, AND CORPORATION TAXES REFERENCED  IN  SUCH  SUBDIVI-
 SIONS  OR, IN THE CASE OF COOPERATIVE COOPERATIONS DESCRIBED IN SUBDIVI-
 SION TWO OF THIS SECTION, THE  TAX  IMPOSED  UNDER  SECTION  ONE-HUNDRED
 EIGHTY-SIX-A OF THE TAX LAW.
   §  2.  Section 66 of the rural electric cooperative law, as amended by
 chapter 888 of the laws of 1983, is amended to read as follows:
   § 66. License fee in lieu of all  franchise,  excise,  income,  corpo-
 ration  and  sales  and  compensating  use  taxes.  Each cooperative and
 foreign corporation doing business in this state pursuant to this  chap-
 ter shall pay annually, on or before the first day of July, to the state
 tax commission, a fee of ten dollars, but shall be exempt from all other
 franchise,  excise,  income,  corporation and sales and compensating use
 taxes whatsoever. The exemption from  the  sales  and  compensating  use
 taxes  provided  by  this  section  shall not apply to the taxes imposed
 pursuant to section eleven hundred seven or eleven hundred eight of  the
 tax  law.  Nothing  contained  in this section shall be deemed to exempt
 such corporations from collecting and paying over sales and compensating
 use taxes on retail sales of tangible  personal  property  and  services
 made  by  such  corporations  to  purchasers  required to pay such taxes
 imposed pursuant to article twenty-eight or authorized pursuant  to  the
 authority  of  article twenty-nine of the tax law. SUCH ANNUAL FEE SHALL
 NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY.
   § 3. This act shall take effect immediately.
 
                                  PART U
 
   Section 1. Paragraph (e) of subdivision 26 of section 210-B of the tax
 law, as amended by section 2 of part RR of chapter 59  of  the  laws  of
 2018, is amended to read as follows:
   (e)  [To]  EXCEPT  IN  THE  CASE OF A QUALIFIED REHABILITATION PROJECT
 UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
 BY THE STATE, THAT IS UNDER THE JURISDICTION OF  THE  OFFICE  OF  PARKS,
 RECREATION  AND  HISTORIC  PRESERVATION,  TO  be eligible for the credit
 allowable under this subdivision, the rehabilitation project shall be in
 whole or in part located within a census tract which  is  identified  as
 being  at or below one hundred percent of the state median family income
 as calculated as of April first of each year using the most recent  five
 year estimate from the American community survey published by the United
 States Census bureau.  If there is a change in the most recent five year
 estimate,  a  census  tract  that  qualified  for eligibility under this
 program before information about the change  was  released  will  remain
 eligible  for  a  credit  under  this  subdivision for an additional two
 calendar years.
   § 2. Paragraph 5 of subsection (oo) of section 606 of the tax law,  as
 amended  by  section  1 of part RR of chapter 59 of the laws of 2018, is
 amended to read as follows:
   (5) [To] EXCEPT IN THE CASE  OF  A  QUALIFIED  REHABILITATION  PROJECT
 UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
 BY  THE  STATE,  THAT  IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS,
 RECREATION AND HISTORIC PRESERVATION, TO  be  eligible  for  the  credit
 allowable  under  this subsection the rehabilitation project shall be in
 whole or in part located within a census tract which  is  identified  as
 being  at or below one hundred percent of the state median family income
 as calculated as of April first of each year using the most recent  five
 year estimate from the American community survey published by the United
 States Census bureau.  If there is a change in the most recent five year

 S. 1509--A                         38                         A. 2009--A
 
 estimate,  a  census  tract  that  qualified  for eligibility under this
 program before information about the change  was  released  will  remain
 eligible for a credit under this subsection for an additional two calen-
 dar years.
   § 3. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as
 amended  by  section  3 of part RR of chapter 59 of the laws of 2018, is
 amended to read as follows:
   (5) [To] EXCEPT IN THE CASE  OF  A  QUALIFIED  REHABILITATION  PROJECT
 UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
 BY  THE  STATE,  THAT  IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS,
 RECREATION AND HISTORIC PRESERVATION, TO  be  eligible  for  the  credit
 allowable under this subdivision, the rehabilitation project shall be in
 whole  or  in  part located within a census tract which is identified as
 being at or below one hundred percent of the state median family  income
 as  calculated as of April first of each year using the most recent five
 year estimate from the American community survey published by the United
 States Census bureau.  If there is a change in the most recent five year
 estimate, a census tract  that  qualified  for  eligibility  under  this
 program  before  information  about  the change was released will remain
 eligible for a credit under  this  subdivision  for  an  additional  two
 calendar years.
   § 4. This act shall take effect immediately and apply to taxable years
 beginning on and after January 1, 2020.
 
                                  PART V
 
   Section  1.  Subdivision (jj) of section 1115 of the tax law, as added
 by section 1 of part UU of chapter 59 of the laws of 2015, is amended to
 read as follows:
   (jj) Tangible personal property or services  otherwise  taxable  under
 this  article sold to a related person shall not be subject to the taxes
 imposed by section eleven hundred five of this article or the compensat-
 ing use tax imposed under section eleven hundred  ten  of  this  article
 where the purchaser can show that the following conditions have been met
 to  the  extent they are applicable: (1)(i) the vendor and the purchaser
 are referenced as either a "covered company"  as  described  in  section
 243.2(f)  or a "material entity" as described in section 243.2(l) of the
 Code of Federal Regulations in a resolution plan that has been submitted
 to an agency of the United States for the purpose of satisfying subpara-
 graph 1 of paragraph (d) of section one hundred sixty-five of the  Dodd-
 Frank  Wall Street Reform and Consumer Protection Act (the "Act") or any
 successor law, or (ii) the vendor and the purchaser are  separate  legal
 entities  pursuant  to a divestiture directed pursuant to subparagraph 5
 of paragraph (d) of section one hundred sixty-five of such  act  or  any
 successor law; (2) the sale would not have occurred between such related
 entities were it not for such resolution plan or divestiture; and (3) in
 acquiring  such  property  or  services,  the  vendor  did  not claim an
 exemption from the tax imposed by this state or another state  based  on
 the  vendor's  intent  to  resell such services or property. A person is
 related to another person for purposes of this subdivision if the person
 bears a relationship to such person described  in  section  two  hundred
 sixty-seven of the internal revenue code. The exemption provided by this
 subdivision  shall  not  apply to sales made, services rendered, or uses
 occurring after June  thirtieth,  two  thousand  [nineteen]  TWENTY-ONE,
 except  with respect to sales made, services rendered, or uses occurring
 pursuant to binding contracts entered into on or before such  date;  but

 S. 1509--A                         39                         A. 2009--A

 in no case shall such exemption apply after June thirtieth, two thousand
 twenty-four.
   § 2. This act shall take effect immediately.
 
                                  PART W
 
   Section  1.  The mental hygiene law is amended by adding a new section
 32.38 to read as follows:
 § 32.38 POWER TO ADMINISTER THE RECOVERY TAX CREDIT PROGRAM.
   (A) AUTHORIZATION. THE COMMISSIONER IS  AUTHORIZED  TO  ESTABLISH  AND
 ADMINISTER  THE RECOVERY TAX CREDIT PROGRAM TO PROVIDE TAX INCENTIVES TO
 CERTIFIED EMPLOYERS FOR EMPLOYING ELIGIBLE INDIVIDUALS IN RECOVERY  FROM
 A  SUBSTANCE  USE  DISORDER  IN PART-TIME AND FULL-TIME POSITIONS IN THE
 STATE. THE COMMISSIONER IS AUTHORIZED TO  ALLOCATE  UP  TO  TWO  MILLION
 DOLLARS  OF  TAX  CREDITS  ANNUALLY  FOR THE RECOVERY TAX CREDIT PROGRAM
 BEGINNING IN THE YEAR TWO THOUSAND TWENTY.
   (B) DEFINITIONS. 1. THE TERM "CERTIFIED EMPLOYER"  MEANS  AN  EMPLOYER
 THAT  HAS  RECEIVED  A  CERTIFICATE  OF TAX CREDIT FROM THE COMMISSIONER
 AFTER THE COMMISSIONER HAS DETERMINED THAT THE EMPLOYER:
   (I) PROVIDES A RECOVERY SUPPORTIVE ENVIRONMENT EVIDENCED BY  A  FORMAL
 WORKING  RELATIONSHIP  WITH  A  LOCAL RECOVERY COMMUNITY ORGANIZATION TO
 PROVIDE SUPPORT FOR EMPLOYERS INCLUDING ANY NECESSARY ASSISTANCE IN  THE
 HIRING  PROCESS OF ELIGIBLE INDIVIDUALS IN RECOVERY FROM A SUBSTANCE USE
 DISORDER AND TRAINING FOR EMPLOYERS OR SUPERVISORS; AND
   (II) FULFILLS THE ELIGIBILITY CRITERIA SET FORTH IN THIS  SECTION  AND
 BY  THE  COMMISSIONER  TO PARTICIPATE IN THE RECOVERY TAX CREDIT PROGRAM
 ESTABLISHED IN THIS SECTION.
   2. THE TERM "ELIGIBLE INDIVIDUAL" MEANS AN INDIVIDUAL WITH A SUBSTANCE
 USE DISORDER AS THAT TERM IS DEFINED IN SECTION 1.03 OF THIS CHAPTER WHO
 IS IN A STATE OF WELLNESS WHERE THERE IS AN ABATEMENT OF SIGNS AND SYMP-
 TOMS THAT CHARACTERIZE ACTIVE ADDICTION  AND  HAS  DEMONSTRATED  TO  THE
 QUALIFIED  EMPLOYER'S SATISFACTION THAT HE OR SHE HAS COMPLETED A COURSE
 OF TREATMENT FOR SUCH SUBSTANCE USE DISORDER.
   (C) APPLICATION AND APPROVAL PROCESS. 1. TO PARTICIPATE IN THE PROGRAM
 ESTABLISHED BY THIS SECTION, AN EMPLOYER MUST, IN A FORM  PRESCRIBED  BY
 THE  COMMISSIONER,  APPLY ANNUALLY TO THE OFFICE BY JANUARY FIFTEENTH TO
 CLAIM CREDIT BASED ON ELIGIBLE INDIVIDUALS EMPLOYED DURING THE PRECEDING
 CALENDAR YEAR. AS PART OF SUCH APPLICATION, AN EMPLOYER MUST:
   (I) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
 TAX INFORMATION WITH  THE  OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE
 SERVICES.  HOWEVER,  ANY  INFORMATION  SHARED  BECAUSE OF THIS AGREEMENT
 SHALL NOT BE AVAILABLE FOR DISCLOSURE  OR  INSPECTION  UNDER  THE  STATE
 FREEDOM OF INFORMATION LAW.
   (II)  ALLOW  THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES AND
 ITS AGENTS ACCESS TO ALL BOOKS AND RECORDS THE DEPARTMENT MAY REQUIRE TO
 MONITOR COMPLIANCE WITH PROGRAM ELIGIBILITY REQUIREMENTS.
   (III) DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED PROGRAM  ELIGIBILITY
 REQUIREMENTS  AND  PROVIDED ALL THE INFORMATION NECESSARY, INCLUDING THE
 NUMBER OF HOURS WORKED BY ANY ELIGIBLE INDIVIDUAL, FOR THE  COMMISSIONER
 TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED.
   2.  (I) AFTER REVIEWING THE APPLICATION AND FINDING IT SUFFICIENT, THE
 COMMISSIONER SHALL ISSUE A CERTIFICATE OF TAX CREDIT  BY  MARCH  THIRTY-
 FIRST.  SUCH  CERTIFICATE SHALL INCLUDE, BUT NOT BE LIMITED TO, THE NAME
 AND EMPLOYER IDENTIFICATION NUMBER OF THE CERTIFIED EMPLOYER, THE AMOUNT
 OF CREDIT THAT THE CERTIFIED EMPLOYER MAY CLAIM, AND ANY OTHER  INFORMA-
 TION THE COMMISSIONER OF TAXATION AND FINANCE DETERMINES IS NECESSARY.

 S. 1509--A                         40                         A. 2009--A
 
   (II)  IN DETERMINING THE AMOUNT OF CREDIT THAT ANY EMPLOYER MAY CLAIM,
 THE COMMISSIONER SHALL REVIEW ALL CLAIMS SUBMITTED FOR CREDIT BY EMPLOY-
 ERS AND, TO THE EXTENT  THAT  THE  TOTAL  AMOUNT  CLAIMED  BY  EMPLOYERS
 EXCEEDS  THE  AMOUNT  ALLOCATED  FOR  THE PROGRAM IN THAT CALENDAR YEAR,
 SHALL ISSUE CREDITS ON A PRO-RATA BASIS CORRESPONDING TO EACH CLAIMANT'S
 SHARE OF THE TOTAL CLAIMED AMOUNT.
   (D) ELIGIBILITY. A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CRED-
 IT  EQUAL TO THE PRODUCT OF ONE DOLLAR AND THE NUMBER OF HOURS WORKED BY
 EACH ELIGIBLE INDIVIDUAL DURING SUCH INDIVIDUAL'S PERIOD OF ELIGIBILITY.
 THE CREDIT SHALL NOT BE  ALLOWED  UNLESS  THE  ELIGIBLE  INDIVIDUAL  HAS
 WORKED  IN  STATE  FOR A MINIMUM OF FIVE HUNDRED HOURS FOR THE CERTIFIED
 EMPLOYER, AND THE CREDIT CANNOT EXCEED TWO THOUSAND DOLLARS PER ELIGIBLE
 INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYER IN THE STATE.  THE  PERIOD
 OF  ELIGIBILITY FOR EACH SUCH EMPLOYEE STARTS ON THE DAY THE EMPLOYEE IS
 HIRED AND ENDS ON DECEMBER THIRTY-FIRST OF  THE  IMMEDIATELY  SUCCEEDING
 CALENDAR YEAR OR THE LAST DAY OF THE EMPLOYEE'S EMPLOYMENT BY THE CERTI-
 FIED  EMPLOYER,  WHICHEVER  COMES  FIRST.  IF  AN EMPLOYEE HAS WORKED IN
 EXCESS OF FIVE HUNDRED HOURS BETWEEN THE DATE  OF  HIRING  AND  DECEMBER
 THIRTY-FIRST  OF THAT YEAR, AN EMPLOYER CAN ELECT TO COMPUTE AND CLAIM A
 CREDIT FOR SUCH EMPLOYEE IN THAT YEAR  BASED  ON  THE  HOURS  WORKED  BY
 DECEMBER  THIRTY-FIRST. ALTERNATIVELY, THE EMPLOYER MAY ELECT TO INCLUDE
 SUCH INDIVIDUAL IN THE COMPUTATION OF THE CREDIT IN THE YEAR IMMEDIATELY
 SUCCEEDING THE YEAR IN WHICH THE EMPLOYEE WAS HIRED. IN SUCH  CASE,  THE
 CREDIT SHALL BE COMPUTED ON THE BASIS OF ALL HOURS WORKED BY SUCH ELIGI-
 BLE  INDIVIDUAL  FROM THE DATE OF HIRE TO THE EARLIER OF THE LAST DAY OF
 EMPLOYMENT OR DECEMBER THIRTY-FIRST OF THE SUCCEEDING YEAR. HOWEVER,  IN
 NO  EVENT  MAY AN EMPLOYEE GENERATE CREDIT FOR HOURS WORKED IN EXCESS OF
 TWO THOUSAND HOURS. AN EMPLOYER MAY CLAIM CREDIT ONLY ONCE WITH  RESPECT
 TO  ANY  ELIGIBLE  INDIVIDUAL AND MAY NOT AGGREGATE HOURS OF TWO OR MORE
 EMPLOYEES TO REACH THE MINIMUM NUMBER OF HOURS.
   (E) DUTIES  OF  THE  COMMISSIONER.  THE  COMMISSIONER  SHALL  ANNUALLY
 PROVIDE  TO  THE  COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE
 INFORMATION ABOUT THE PROGRAM INCLUDING, BUT NOT LIMITED TO, THE  NUMBER
 OF CERTIFIED EMPLOYERS THEN PARTICIPATING IN THE PROGRAM, UNIQUE IDENTI-
 FYING  INFORMATION  FOR  EACH CERTIFIED EMPLOYER, THE NUMBER OF ELIGIBLE
 INDIVIDUALS EMPLOYED BY  EACH  CERTIFIED  EMPLOYER,  UNIQUE  IDENTIFYING
 INFORMATION  FOR  EACH  ELIGIBLE  INDIVIDUAL  EMPLOYED  BY THE CERTIFIED
 EMPLOYERS, THE NUMBER OF HOURS WORKED BY SUCH ELIGIBLE INDIVIDUALS,  THE
 TOTAL DOLLAR AMOUNT OF CLAIMS FOR CREDIT, AND THE DOLLAR AMOUNT OF CRED-
 IT GRANTED TO EACH CERTIFIED EMPLOYER.
   (F)  CERTIFIED  EMPLOYER'S  TAXABLE  YEAR. IF THE CERTIFIED EMPLOYER'S
 TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM
 THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX  CREDIT  ON  THE  CALENDAR
 YEAR  RETURN  FOR WHICH THE CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE
 CERTIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE  EMPLOYER  SHALL
 BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CRED-
 IT  ON  THE RETURN FOR THE FISCAL YEAR THAT INCLUDES THE LAST DAY OF THE
 CALENDAR YEAR COVERED BY THE CERTIFICATE OF TAX CREDIT.
   (G) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THE TAX LAW:
   1. ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53.
   2. ARTICLE 22: SECTION 606, SUBSECTION (JJJ).
   3. ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:

 S. 1509--A                         41                         A. 2009--A
 
   53. RECOVERY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A
 CERTIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL  HYGIENE  LAW
 THAT  HAS  RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
 ON  SUCH  CERTIFICATE  OF  TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A
 PARTNERSHIP OR MEMBER OF A  LIMITED  LIABILITY  COMPANY  THAT  HAS  BEEN
 CERTIFIED  BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE
 ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF  THE
 MENTAL  HYGIENE  LAW  SHALL  BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
 EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS
 THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
 SECTION  TWO  HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF THE
 CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
 TAX  TO  THAT  AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE
 FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT
 TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE  PAID
 THEREON.
   (C)  TAX  RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH
 TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF  OF
 RECEIPT  OF  ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF
 THE OFFICE OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  PURSUANT  TO
 SECTION 32.38 OF THE MENTAL HYGIENE LAW.
   § 3. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606
 of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
 follows:
 
 (XLIV) RECOVERY TAX CREDIT UNDER     AMOUNT OF CREDIT UNDER
 SUBSECTION (JJJ)                     SUBDIVISION FIFTY-THREE OF
                                      SECTION TWO HUNDRED TEN-B
 
   § 4. Section 606 of the tax law is amended by adding a new  subsection
 (jjj) to read as follows:
   (JJJ) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS
 A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
 THAT  HAS  RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
 ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS  A  PARTNER  IN  A
 PARTNERSHIP,  MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN
 S CORPORATION THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE  OFFICE
 OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  AS A QUALIFIED EMPLOYER
 PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS
 PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED  LIABIL-
 ITY COMPANY OR S CORPORATION.
   (2)  OVERPAYMENT.  IF  THE  AMOUNT  OF  THE  CREDIT ALLOWED UNDER THIS
 SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXA-
 BLE YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT  OF  TAX  TO  BE
 CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, NO INTEREST  WILL
 BE PAID THEREON.

 S. 1509--A                         42                         A. 2009--A
 
   (3)  TAX  RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH
 TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF  OF
 RECEIPT  OF  ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF
 THE OFFICE OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  PURSUANT  TO
 SECTION 32.38 OF THE MENTAL HYGIENE LAW.
   §  5.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT  IS
 A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
 THAT  HAS  RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
 ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS  A  PARTNER  IN  A
 PARTNERSHIP  OR  MEMBER  OF  A  LIMITED  LIABILITY COMPANY THAT HAS BEEN
 CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND  SUBSTANCE
 ABUSE  SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE
 MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA  SHARE  OF  THE  CREDIT
 EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  MINIMUM  TAX  FIXED  BY  PARAGRAPH FOUR OF SUBDIVISION (A) OF
 SECTION FIFTEEN HUNDRED TWO  OF  THIS  ARTICLE  OR  BY  SECTION  FIFTEEN
 HUNDRED  TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE
 AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
 REDUCES  THE  TAX  TO  SUCH  AMOUNT,  THEN ANY AMOUNT OF CREDIT THUS NOT
 DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS  AN  OVERPAYMENT  OF
 TAX  TO  BE  CREDITED  OR  REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
 SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
 PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED  TO  ATTACH
 TO  ITS  TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF
 RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE  COMMISSIONER  OF
 THE  OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES PURSUANT TO
 SECTION 32.38 OF THE MENTAL HYGIENE LAW.
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2020 and shall  apply  to  those
 eligible individuals hired after this act shall take effect.

                                  PART X
 
   Section  1.  Paragraph  (a) of subdivision 9 of section 208 of the tax
 law is amended by adding a new subparagraph 20 to read as follows:
   (20) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION  (A)  OF  SECTION
 ONE  HUNDRED  EIGHTEEN  OF  THE  INTERNAL  REVENUE  CODE,  FROM THE TERM
 "CONTRIBUTION TO THE CAPITAL  OF  THE  TAXPAYER"  BY  PARAGRAPH  TWO  OF
 SUBSECTION  (B)  OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE
 CODE.
   § 2. Paragraph 1 of subdivision (b) of section 1503 of the tax law  is
 amended by adding a new subparagraph (T) to read as follows:
   (T) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE
 HUNDRED  EIGHTEEN  OF THE INTERNAL REVENUE CODE, FROM THE TERM "CONTRIB-
 UTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B)
 OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE.

 S. 1509--A                         43                         A. 2009--A
 
   § 3. Paragraph (a) of subdivision 8 of section 11-602 of the  adminis-
 trative code of the city of New York is amended by adding a new subpara-
 graph 14 to read as follows:
   (14)  ANY  AMOUNT  EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION
 ONE HUNDRED EIGHTEEN  OF  THE  INTERNAL  REVENUE  CODE,  FROM  THE  TERM
 "CONTRIBUTION  TO  THE  CAPITAL  OF  THE  TAXPAYER"  BY PARAGRAPH TWO OF
 SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE  INTERNAL  REVENUE
 CODE.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART Y
 
   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:
   § 44.  INVESTMENT  MANAGEMENT  SERVICES.  (A)  FOR  PURPOSES  OF  THIS
 SECTION,  THE  TERM "INVESTMENT MANAGEMENT SERVICES" TO A PARTNERSHIP, S
 CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING
 THE PURCHASE OR SALE OF  SECURITIES  AS  DEFINED  IN  PARAGRAPH  TWO  OF
 SUBSECTION  (C)  OF  SECTION  FOUR  HUNDRED SEVENTY-FIVE OF THE INTERNAL
 REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE  THEREOF,  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS
 DEFINED  IN  PARAGRAPH  TWO  OF  SUBSECTION  (E) OF SECTION FOUR HUNDRED
 SEVENTY-FIVE OF THE INTERNAL REVENUE  CODE,  OR  OPTIONS  OR  DERIVATIVE
 CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING,
 OR  DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT TO
 THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT
 OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI-
 VISION.
   (B) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS.  NOTWITHSTANDING
 ANY STATE OR FEDERAL LAW TO THE CONTRARY:
   (1)  WHERE  A  PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE
 PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER  FOR  PURPOSES
 OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE
 SHARE  OF  INCOME,  GAIN,  LOSS  AND DEDUCTION, INCLUDING ANY GUARANTEED
 PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE  WOULD
 HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES
 FOR  THE  PARTNERSHIP.  INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR
 PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS  A  BUSINESS  RECEIPT  FOR
 SERVICES  AND  FOR  PURPOSES  OF  ARTICLE  TWENTY-TWO OF THIS CHAPTER AS
 INCOME ATTRIBUTABLE TO A  TRADE,  BUSINESS,  PROFESSION  OR  OCCUPATION.
 PROVIDED,  HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE
 BEEN DETERMINED  IF  THE  PARTNER  PERFORMED  NO  INVESTMENT  MANAGEMENT
 SERVICES SHALL NOT BE LESS THAN ZERO.
   (2)  WHERE  A  SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR
 THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A  SHAREHOLDER
 FOR  PURPOSES  OF  THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE-
 HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT  IS  IN
 EXCESS  OF  THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE-
 HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT  SERVICES.  INSTEAD,  SUCH
 EXCESS  AMOUNT  SHALL  BE  TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF
 THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION  OR
 OCCUPATION.  PROVIDED,  HOWEVER,  THE  AMOUNT OF THE PRO RATA SHARE THAT
 WOULD HAVE BEEN DETERMINED IF  THE  SHAREHOLDER  PERFORMED  NO  SERVICES
 SHALL NOT BE LESS THAN ZERO.

 S. 1509--A                         44                         A. 2009--A
 
   (3)  A  PARTNER  OR  SHAREHOLDER  WILL  NOT  BE DEEMED TO BE PROVIDING
 INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION  IF  AT  LEAST  EIGHTY
 PERCENT  OF  THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER-
 SHIP OR S CORPORATION DURING THE TAXABLE YEAR  CONSIST  OF  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT.
   (C)  IN  ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO
 ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY  CORPORATION,  PARTNER
 OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT
 TO  AN  ADDITIONAL  TAX,  REFERRED  TO AS THE "CARRIED INTEREST FAIRNESS
 FEE".  SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE  EQUAL  TO  SEVENTEEN
 PERCENT  OF  THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF
 THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE  OF  A  CORPORATION  OR
 SHAREHOLDER  OF  AN  S  CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT
 SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN  PERCENT  OF  THE  EXCESS
 AMOUNT  APPORTIONED  TO  THE  STATE  BY  APPLYING THE CORPORATION'S OR S
 CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO  HUNDRED
 TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID-
 ING  SUCH  INVESTMENT  MANAGEMENT  SERVICES,  SUCH FEE SHALL BE EQUAL TO
 SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES  AS
 DETERMINED  UNDER  SECTION  SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH
 CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN  ACCORDANCE  WITH
 ARTICLE  NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH
 TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS-
 LATIVE BILL  DRAFTING  COMMISSION  THAT  FEDERAL  LEGISLATION  HAS  BEEN
 ENACTED  THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR
 FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION.
   § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law,  as
 amended  by  section  5  of part T of chapter 59 of the laws of 2015, is
 amended to read as follows:
    (a) (i) The term "investment income" means income, including  capital
 gains  in  excess  of  capital  losses,  from investment capital, to the
 extent included in  computing  entire  net  income,  less,  (A)  in  the
 discretion  of  the  commissioner,  any interest deductions allowable in
 computing entire net income which are directly or  indirectly  attribut-
 able to investment capital or investment income, AND (B) ANY NET CAPITAL
 GAIN  INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED AS
 A BUSINESS RECEIPT PURSUANT  TO  SECTION  FORTY-FOUR  OF  THIS  CHAPTER;
 provided, however, that in no case shall investment income exceed entire
 net  income.  (ii) If the amount of interest deductions subtracted under
 subparagraph (i) of this paragraph exceeds investment income, the excess
 of such amount over investment income must be added back to  entire  net
 income.  (iii)  If  the  taxpayer's investment income determined without
 regard to the interest deductions subtracted under subparagraph  (i)  of
 this  paragraph  comprises  more  than  eight  percent of the taxpayer's
 entire net income, investment income determined without regard  to  such
 interest deductions cannot exceed eight percent of the taxpayer's entire
 net income.
   § 3. Subsection (b) of section 617 of the tax law, as amended by chap-
 ter 606 of the laws of 1984, is amended to read as follows:
   (b)  Character  of  items. [Each] EXCEPT AS PROVIDED IN SECTION FORTY-
 FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income,
 gain, loss, or deduction shall have the same character for a partner  or
 shareholder under this article as for federal income tax purposes. Where
 an  item  is not characterized for federal income tax purposes, it shall
 have the same character for a partner  or  shareholder  as  if  realized
 directly  from  the  source  from which realized by the partnership or S

 S. 1509--A                         45                         A. 2009--A
 
 corporation or incurred in the same manner as incurred by  the  partner-
 ship or S corporation.
   § 4. Subsection (d) of section 631 of the tax law, as amended by chap-
 ter 28 of the laws of 1987, is amended to read as follows:
   (d)  Purchase  and sale for own account.-- A nonresident, other than a
 dealer holding property primarily for sale to customers in the  ordinary
 course  of  his  OR  HER  trade  or business OR A PARTNER OR SHAREHOLDER
 PERFORMING  INVESTMENT  MANAGEMENT  SERVICES  AS  DESCRIBED  IN  SECTION
 FORTY-FOUR  OF THIS CHAPTER, shall not be deemed to carry on a business,
 trade, profession or occupation in this state solely by  reason  of  the
 purchase  and sale of property or the purchase, sale or writing of stock
 option contracts, or both, for his own account.
   § 5. The opening paragraph of subsection (b) of section 632 of the tax
 law, as amended by chapter 28 of the laws of 1987, is amended to read as
 follows:
   [In] EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS  CHAP-
 TER,  IN  determining  the sources of a nonresident partner's income, no
 effect shall be given  to  a  provision  in  the  partnership  agreement
 which--
   §  6.  For  taxable  years  beginning  on or after January 1, 2019 and
 before January 1, 2020, (i) no addition to tax under subsection  (c)  of
 section  685  or  subsection (c) of section 1085 of the tax law shall be
 imposed with respect to any underpayment attributable to the  amendments
 made  by  this  act  of any estimated taxes that are required to be paid
 prior to the effective date of this  act,  provided  that  the  taxpayer
 timely  made  those payments; and (ii) the required installment of esti-
 mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of
 subsection (c) of section 685 of the tax law, and the exception to addi-
 tion for underpayment of estimated tax described in paragraph 1 or 2  of
 subsection  (d)  of  section  1085  of  the  tax law, in relation to the
 preceding year's return, shall be calculated as if the  amendments  made
 by this act had been in effect for that entire preceding year.
   §  7.  This  act  shall take effect upon the enactment into law by the
 states of Connecticut, New Jersey,  Massachusetts  and  Pennsylvania  of
 legislation  having  substantially  the  same effect as this act and the
 enactments by such states have taken effect  in  each  state  and  shall
 apply  for  taxable  years  beginning  on  or after such date; provided,
 however, if the states of Connecticut,  New  Jersey,  Massachusetts  and
 Pennsylvania  have already enacted such legislation, this act shall take
 effect immediately and shall apply for taxable  years  beginning  on  or
 after  January  1, 2019; provided further that the commissioner of taxa-
 tion and finance shall notify the legislative bill  drafting  commission
 upon the enactment of such legislation by the states of Connecticut, New
 Jersey, Massachusetts and Pennsylvania in order that such commission may
 maintain an accurate and timely effective data base of the official text
 of  the laws of the state of New York in furtherance of effectuating the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law.
 
                                  PART Z
 
   Section  1.  Paragraph  3 of subdivision (a) and paragraphs 2 and 5 of
 subdivision (c) of section 43 of the tax law, as added by section  7  of
 part  K  of  chapter  59  of  the  laws  of 2017, are amended to read as
 follows:

 S. 1509--A                         46                         A. 2009--A
 
   (3) The total amount of credit allowable to a qualified life  sciences
 company,  or,  if  the  life  sciences  company  is properly included or
 required to be included in a combined report,  to  the  combined  group,
 taken  in  the aggregate, shall not exceed five hundred thousand dollars
 in  any taxable year. If the [life sciences company] TAXPAYER is a part-
 ner in a partnership THAT IS A LIFE SCIENCES COMPANY or A shareholder of
 a New York S corporation THAT IS A LIFE SCIENCES COMPANY, then the total
 amount of credit allowable shall be applied at the entity level, so that
 the total amount of credit allowable to all the partners or shareholders
 of each such entity, taken  in  the  aggregate,  does  not  exceed  five
 hundred thousand dollars in any taxable year.
   (2) "New business" means any business that qualifies as a new business
 under  either  paragraph  (f)  of subdivision one of section two hundred
 ten-B or paragraph ten of subsection [one] (A) of  section  six  hundred
 six of this chapter.
   (5) "Related person" means a related person as defined in subparagraph
 [(c)]  (C)  of  paragraph  three of subsection (b) of section 465 of the
 internal revenue code.  For  this  purpose,  a  "related  person"  shall
 include  an entity that would have qualified as a "related person" if it
 had not been dissolved, liquidated, merged with another entity or other-
 wise ceased to exist or operate.
   § 2. Subdivision 5 of section 209  of  the  tax  law,  as  amended  by
 section  5  of  part  A of chapter 59 of the laws of 2014, is amended to
 read as follows:
   5. For any taxable year of a real estate investment trust  as  defined
 in section eight hundred fifty-six of the internal revenue code in which
 such  trust  is  subject  to federal income taxation under section eight
 hundred fifty-seven of such code, such trust shall be subject to  a  tax
 computed under either paragraph (a) or (d) of subdivision one of section
 two  hundred ten of this chapter, whichever is greater, and shall not be
 subject to any tax under article thirty-three of this chapter except for
 a captive REIT required to file a combined return under subdivision  (f)
 of  section fifteen hundred fifteen of this chapter. In the case of such
 a real estate investment trust, including a captive REIT as  defined  in
 section  two  of  this chapter, the term "entire net income" means "real
 estate investment trust taxable income" as defined in paragraph  two  of
 subdivision  (b)  of  section  eight hundred fifty-seven (as modified by
 section eight hundred fifty-eight) of the internal  revenue  code  [plus
 the  amount  taxable under paragraph three of subdivision (b) of section
 eight hundred fifty-seven of such code], subject  to  the  modifications
 required  by subdivision nine of section two hundred eight of this arti-
 cle.
   § 3. Paragraph (a) of subdivision 8 of section 211 of the tax law,  as
 amended  by  chapter  760  of  the  laws  of 1992, is amended to read as
 follows:
   (a) Except in accordance with proper judicial order  or  as  otherwise
 provided  by  law,  it  shall  be unlawful for any tax commissioner, any
 officer or employee of the department [of taxation and finance], or  any
 person  who,  pursuant  to  this  section,  is  permitted to inspect any
 report, or to whom any information contained in any report is furnished,
 or any person engaged or retained by such department on  an  independent
 contract basis, or any person who in any manner may acquire knowledge of
 the  contents  of a report filed pursuant to this article, to divulge or
 make known in any manner the amount of income  or  any  particulars  set
 forth  or  disclosed  in  any  report  under  this article. The officers
 charged with the custody of  such  reports  shall  not  be  required  to

 S. 1509--A                         47                         A. 2009--A
 
 produce  any  of  them  or evidence of anything contained in them in any
 action or proceeding in any court, except on behalf of the state or  the
 commissioner  in  an  action  or proceeding under the provisions of this
 chapter or in any other action or proceeding involving the collection of
 a tax due under this chapter to which the state or the commissioner is a
 party or a claimant, or on behalf of any party to any action or proceed-
 ing under the provisions of this article when the reports or facts shown
 thereby  are  directly  involved in such action or proceeding, in any of
 which events the court may require the production of, and may  admit  in
 evidence,  so  much of said reports or of the facts shown thereby as are
 pertinent to the action or proceeding, and  no  more.  The  commissioner
 may,  nevertheless,  publish a copy or a summary of any determination or
 decision rendered after the formal hearing provided for in  section  one
 thousand  eighty-nine of this chapter. Nothing herein shall be construed
 to prohibit the delivery to a corporation or its duly authorized  repre-
 sentative  of  a  copy  of  any  report filed by it, nor to prohibit the
 publication of statistics so classified as to prevent the identification
 of particular reports and the  items  thereof;  or  the  publication  of
 delinquent  lists  showing the names of taxpayers who have failed to pay
 their taxes at the time and  in  the  manner  provided  by  section  two
 hundred  thirteen of this chapter together with any relevant information
 which in the opinion of the commissioner may assist in the collection of
 such delinquent taxes; or the inspection  by  the  attorney  general  or
 other  legal  representatives  of  the state of the report of any corpo-
 ration which shall bring action to set aside or  review  the  tax  based
 thereon, or against which an action or proceeding under this chapter has
 been  recommended  by  the  commissioner  of taxation and finance or the
 attorney general or has  been  instituted;  or  the  inspection  of  the
 reports of any corporation by the comptroller or duly designated officer
 or  employee  of the state department of audit and control, for purposes
 of the audit of a refund of any tax paid by such corporation under  this
 article[; and nothing in this chapter shall be construed to prohibit the
 publication of the issuer's allocation percentage of any corporation, as
 such  term  "issuer's  allocation percentage" is defined in subparagraph
 one of paragraph (b) of subdivision three of section two hundred ten  of
 this article].
   §  4.  Subdivision  (a) of section 213-b of the tax law, as amended by
 section 10 of part Q of chapter 60 of the laws of 2016,  is  amended  to
 read as follows:
   (a) First installments for certain taxpayers.--In privilege periods of
 twelve  months  ending  at  any  time  during the calendar year nineteen
 hundred seventy and  thereafter,  every  taxpayer  subject  to  the  tax
 imposed  by  section  two hundred nine of this chapter must pay with the
 report required to be filed for the preceding privilege period, or  with
 an  application  for  extension  of  the time for filing the report, for
 taxable years beginning before January first, two thousand sixteen,  and
 must pay on or before the fifteenth day of the third month of such priv-
 ilege  periods,  for  taxable years beginning on or after January first,
 two thousand sixteen, an amount equal to (i) twenty-five percent of  the
 second  preceding year's tax if the second preceding year's tax exceeded
 one thousand dollars but was equal to or less than one hundred  thousand
 dollars, or (ii) forty percent of the second preceding year's tax if the
 second  preceding  year's  tax exceeded one hundred thousand dollars. If
 the second preceding year's tax under section two hundred nine  of  this
 chapter exceeded one thousand dollars and the taxpayer is subject to the
 tax surcharge imposed by section two hundred nine-B of this chapter, the

 S. 1509--A                         48                         A. 2009--A
 
 taxpayer  must  also  pay  with  the tax surcharge report required to be
 filed for the second preceding privilege period, or with an  application
 for  extension  of  the  time  for  filing the report, for taxable years
 beginning before January first, two thousand sixteen, and must pay on or
 before  the  fifteenth day of the third month of such privilege periods,
 for taxable years beginning on or  after  January  first,  two  thousand
 sixteen, an amount equal to (i) twenty-five percent of the tax surcharge
 imposed for the second preceding year if the second preceding year's tax
 was  equal  to  or less than one hundred thousand dollars, or (ii) forty
 percent of the tax surcharge imposed for the second  preceding  year  if
 the  second  preceding year's tax exceeded one hundred thousand dollars.
 Provided, however, that every taxpayer that is [an] A NEW YORK S  corpo-
 ration  must  pay with the report required to be filed for the preceding
 privilege period, or with an application for extension of the  time  for
 filing  the  report,  an  amount equal to (i) twenty-five percent of the
 preceding year's tax if the preceding year's tax exceeded  one  thousand
 dollars  but  was equal to or less than one hundred thousand dollars, or
 (ii) forty percent of the preceding year's tax if the  preceding  year's
 tax  exceeded one hundred thousand dollars. [If the preceding year's tax
 under section two hundred nine of this  article  exceeded  one  thousand
 dollars and such taxpayer that is an S corporation is subject to the tax
 surcharge  imposed  by  section  two hundred nine-B of this article, the
 taxpayer must also pay with the tax  surcharge  report  required  to  be
 filed  for  the  preceding  privilege period, or with an application for
 extension of the time for filing the report,  an  amount  equal  to  (i)
 twenty-five  percent of the tax surcharge imposed for the preceding year
 if the preceding year's tax was equal equal to or less than one  hundred
 thousand dollars, or (ii) forty percent of the tax surcharge imposed for
 the  preceding  year  if  the  preceding year's tax exceeded one hundred
 thousand dollars.]
   § 5. Subdivision (e) of section 213-b of the tax law,  as  amended  by
 chapter  166  of the laws of 1991, the subdivision heading as amended by
 section 10-b of part Q of chapter 60 of the laws of 2016, is amended  to
 read as follows:
   (e)  Interest  on  certain  installments based on the second preceding
 year's tax.--Notwithstanding the  provisions  of  section  one  thousand
 eighty-eight  of this chapter or of section sixteen of the state finance
 law, if an amount paid pursuant to subdivision (a) exceeds  the  tax  or
 tax surcharge, respectively, shown on the report required to be filed by
 the  taxpayer for the privilege period during which the amount was paid,
 interest shall be allowed and paid on the amount by which the amount  so
 paid  pursuant to such subdivision exceeds such tax or tax surcharge. In
 the case of amounts so paid pursuant to subdivision (a),  such  interest
 shall be allowed and paid at the overpayment rate set by the commission-
 er  of  taxation and finance pursuant to section one thousand ninety-six
 of this chapter, or if no rate is set, at the rate of six per centum per
 annum from the date of payment of the amount so paid  pursuant  to  such
 subdivision  to  the fifteenth day of the [third] FOURTH month following
 the close of the taxable year, provided, however, that no interest shall
 be allowed or paid under this subdivision if the amount thereof is  less
 than  one dollar or if such interest becomes payable solely because of a
 carryback of a net operating loss in a subsequent privilege period.
   § 6. Subdivision (a) of section 1503 of the tax  law,  as  amended  by
 chapter 817 of the laws of 1987, is amended to read as follows:
   (a)  The entire net income of a taxpayer shall be its total net income
 from all sources which shall be presumably the same as the  life  insur-

 S. 1509--A                         49                         A. 2009--A
 
 ance company taxable income (which shall include, in the case of a stock
 life  insurance  company [which] THAT has A BALANCE, AS DETERMINED AS OF
 THE CLOSE OF SUCH COMPANY'S LAST TAXABLE YEAR BEGINNING  BEFORE  JANUARY
 FIRST,  TWO  THOUSAND  EIGHTEEN,  IN  an  existing policyholders surplus
 account, AS SUCH TERM IS DEFINED IN SECTION 815 OF THE INTERNAL  REVENUE
 CODE  AS  SUCH  SECTION WAS IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE
 JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount of [direct and indirect
 distributions during the taxable year to shareholders from such account]
 ONE-EIGHTH OF SUCH BALANCE), taxable income of a partnership or  taxable
 income,  but not alternative minimum taxable income, as the case may be,
 which the taxpayer is required to report to the United  States  treasury
 department, for the taxable year or, in the case of a corporation exempt
 from  federal income tax (other than the tax on unrelated business taxa-
 ble income imposed under section 511 of the internal revenue  code)  but
 not  exempt  from  tax  under  section  fifteen hundred one, the taxable
 income which such taxpayer would have been required to  report  but  for
 such exemption, except as hereinafter provided.
   §  7. Paragraphs (a) and (b) of subdivision 4 of section 11-676 of the
 administrative code of the city of New  York  are  amended  to  read  as
 follows:
   (a)  The  tax  shown  on  the return of the taxpayer for the preceding
 taxable year OR THE SECOND PRECEDING TAXABLE YEAR,  AS  APPLICABLE  WITH
 RESPECT  TO  THE  TAXPAYER'S  DECLARATION  OF ESTIMATED TAX, if a return
 showing a liability for tax was filed by the  taxpayer  for  [the]  SUCH
 preceding  OR SECOND PRECEDING taxable year and such preceding OR SECOND
 PRECEDING year was a taxable year of twelve months, or
   (b) An amount equal to the tax computed at the rates applicable to the
 taxable year, but otherwise on the basis  of  the  facts  shown  on  the
 return  of  the  taxpayer  for, and the law applicable to, the preceding
 taxable year OR THE SECOND PRECEDING TAXABLE YEAR,  AS  APPLICABLE  WITH
 RESPECT TO THE TAXPAYER'S DECLARATION OF ESTIMATED TAX, or
   § 8. Section 2 of chapter 369 of the laws of 2018 amending the tax law
 relating  to unrelated business taxable income of a taxpayer, is amended
 to read as follows:
   § 2. This act shall take effect immediately and shall apply to  [taxa-
 ble  years  beginning]  AMOUNTS PAID OR INCURRED on and after January 1,
 2018.
   § 9. Paragraph (b) of subdivision (8) of section 11-602 of the  admin-
 istrative  code  of  the  city  of  New  York is amended by adding a new
 subparagraph (20) to read as follows:
   (20) THE AMOUNT OF ANY FEDERAL DEDUCTION THAT WOULD HAVE BEEN  ALLOWED
 PURSUANT  TO  SECTION  250(A)(1)(A)  OF THE INTERNAL REVENUE CODE IF THE
 TAXPAYER HAD NOT MADE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER  ONE  OF
 THE INTERNAL REVENUE CODE.
   §  10.  Clause (i) of subparagraph (1) of paragraph (b) of subdivision
 (3) of section 11-604 of the administrative code of the city of New York
 is amended to read as follows:
   (i) In the case of an issuer or obligor  subject  to  tax  under  this
 subchapter,  SUBCHAPTER  THREE-A  or subchapter four of this chapter, or
 subject to tax as a utility corporation under  chapter  eleven  of  this
 title, the issuer's allocation percentage shall be the percentage of the
 appropriate  measure  (as  defined  hereinafter) which is required to be
 allocated within the city on the report or reports, if any, required  of
 the  issuer  or  obligor  under  this  title for the preceding year. The
 appropriate measure referred to in the preceding sentence shall  be:  in
 the  case of an issuer or obligor subject to this subchapter OR SUBCHAP-

 S. 1509--A                         50                         A. 2009--A

 TER THREE-A, entire capital; in the case of an issuer or obligor subject
 to subchapter four of this chapter, issued capital stock; in the case of
 an issuer or obligor subject to chapter eleven of this title as a utili-
 ty corporation, gross income.
   § 11. This act shall take effect immediately, provided, however, that:
   (i) section one of this act shall be deemed to have been in full force
 and  effect  on  and after the effective date of part K of chapter 59 of
 the laws of 2017;
   (ii) sections two and six of this act shall be deemed to have been  in
 full  force  and  effect  on  and after the effective date of part KK of
 chapter 59 of the laws of 2018; provided, however, that section  six  of
 this  act  shall apply to taxable years beginning on or after January 1,
 2018 through taxable years beginning on or before January 1, 2025;
   (iii) section three of this act shall be deemed to have been  in  full
 force and effect on and after the effective date of part A of chapter 59
 of the laws of 2014;
   (iv)  sections  four,  five,  and seven of this act shall be deemed to
 have been in full force and effect on and after the  effective  date  of
 part Q of chapter 60 of the laws of 2016;
   (v)  section  eight  of  this act shall be deemed to have been in full
 force and effect on and after the effective date of chapter 369  of  the
 laws of 2018;
   (vi)  section  nine of this act shall apply to taxable years beginning
 on and after January 1, 2018.
 
                                  PART AA
 
   Section 1. Section 487 of the real property  tax  law  is  amended  by
 adding a new subdivision 10 to read as follows:
   10.  NOTWITHSTANDING  THE  FOREGOING PROVISIONS OF THIS SECTION, ON OR
 AFTER APRIL FIRST, TWO THOUSAND NINETEEN, REAL PROPERTY  THAT  COMPRISES
 OR  INCLUDES  A  SOLAR  OR WIND ENERGY SYSTEM, FARM WASTE ENERGY SYSTEM,
 MICROHYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING  SYSTEM,
 MICROCOMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM, ELECTRIC ENER-
 GY  STORAGE  SYSTEM, OR FUEL-FLEXIBLE LINEAR GENERATOR AS SUCH TERMS ARE
 DEFINED IN PARAGRAPHS (B), (F), (H), (J), (L), (N), AND (O) OF  SUBDIVI-
 SION  ONE  OF  THIS  SECTION (HEREINAFTER, INDIVIDUALLY OR COLLECTIVELY,
 "ENERGY SYSTEM"), SHALL BE EXEMPT FROM ANY TAXATION, SPECIAL AD  VALOREM
 LEVIES,  AND  SPECIAL ASSESSMENTS TO THE EXTENT PROVIDED IN SECTION FOUR
 HUNDRED NINETY OF THIS ARTICLE, AND THE OWNER OF SUCH PROPERTY SHALL NOT
 BE SUBJECT TO ANY REQUIREMENT TO ENTER INTO A CONTRACT FOR  PAYMENTS  IN
 LIEU  OF  TAXES IN ACCORDANCE WITH SUBDIVISION NINE OF THIS SECTION, IF:
 (A) THE ENERGY SYSTEM IS INSTALLED ON REAL PROPERTY  THAT  IS  OWNED  OR
 CONTROLLED  BY THE STATE OF NEW YORK, A DEPARTMENT OR AGENCY THEREOF, OR
 A STATE AUTHORITY AS THAT TERM IS DEFINED BY SUBDIVISION ONE OF  SECTION
 TWO  OF  THE  PUBLIC  AUTHORITIES  LAW; AND (B) THE STATE OF NEW YORK, A
 DEPARTMENT OR AGENCY THEREOF, OR A  STATE  AUTHORITY  AS  THAT  TERM  IS
 DEFINED  BY SUBDIVISION ONE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW
 HAS AGREED TO PURCHASE THE ENERGY PRODUCED BY SUCH ENERGY SYSTEM OR  THE
 ENVIRONMENTAL  CREDITS  OR  ATTRIBUTES  CREATED  BY VIRTUE OF THE ENERGY
 SYSTEM'S OPERATION, IN ACCORDANCE WITH  A  WRITTEN  AGREEMENT  WITH  THE
 OWNER OR OPERATOR OF SUCH ENERGY SYSTEM. SUCH EXEMPTION SHALL BE GRANTED
 ONLY  UPON  APPLICATION  BY  THE  OWNER  OF  THE REAL PROPERTY ON A FORM
 PRESCRIBED BY THE COMMISSIONER, WHICH APPLICATION SHALL  BE  FILED  WITH
 THE  ASSESSOR  OF  THE  APPROPRIATE  COUNTY, CITY, TOWN OR VILLAGE ON OR
 BEFORE THE TAXABLE STATUS DATE OF SUCH COUNTY, CITY, TOWN OR VILLAGE.

 S. 1509--A                         51                         A. 2009--A
 
   § 2. Section 490 of the real property tax law, as amended  by  chapter
 87 of the laws of 2001, is amended to read as follows:
   §  490.  Exemption  from special ad valorem levies and special assess-
 ments.  Real property exempt from taxation pursuant to  subdivision  two
 of  section  four hundred, subdivision one of section four hundred four,
 subdivision one of section  four  hundred  six,  sections  four  hundred
 eight,  four  hundred  ten, four hundred ten-a, four hundred ten-b, four
 hundred eighteen, four hundred twenty-a,  four  hundred  twenty-b,  four
 hundred  twenty-two, four hundred twenty-six, four hundred twenty-seven,
 four hundred twenty-eight, four hundred thirty, four hundred thirty-two,
 four hundred thirty-four, four hundred thirty-six, four hundred  thirty-
 eight,  four  hundred fifty, four hundred fifty-two, four hundred fifty-
 four, four hundred fifty-six,  four  hundred  sixty-four,  four  hundred
 seventy-two,  four  hundred seventy-four, [and] four hundred eighty-five
 AND SUBDIVISION TEN OF SECTION FOUR HUNDRED EIGHTY-SEVEN of this chapter
 shall also be exempt from special ad valorem levies and special  assess-
 ments  against  real  property located outside cities and villages for a
 special improvement or service or  a  special  district  improvement  or
 service and special ad valorem levies and special assessments imposed by
 a  county  improvement district or district corporation except (1) those
 levied to pay for the  costs,  including  interest  and  incidental  and
 preliminary  costs,  of  the  acquisition,  installation,  construction,
 reconstruction and enlargement of or additions to the following improve-
 ments, including original equipment, furnishings, machinery  or  appara-
 tus,  and  the  replacements  thereof:  water  supply  and  distribution
 systems; sewer systems (either sanitary or  surface  drainage  or  both,
 including  purification,  treatment  or  disposal  plants or buildings);
 waterways and drainage improvements; street, highway, road  and  parkway
 improvements  (including  sidewalks, curbs, gutters, drainage, landscap-
 ing, grading or improving the right of way) and (2) special  assessments
 payable in installments on an indebtedness including interest contracted
 prior  to  July first, nineteen hundred fifty-three, pursuant to section
 two hundred forty-two of the town law or pursuant to any other  compara-
 ble provision of law.
   § 3. This act shall take effect immediately.
 
                                  PART BB
 
   Section  1.  Subdivision  1  of section 107 of the racing, pari-mutuel
 wagering and breeding law, as added by section 1 of part A of chapter 60
 of the laws of 2012, is amended as follows:
   1. No person shall be appointed to or employed by the  commission  if,
 during the period commencing three years prior to appointment or employ-
 ment,  [said]  SUCH  person  held any direct or indirect interest in, or
 employment by, any corporation, association or person engaged in  gaming
 activity  within  the  state.  Prior  to appointment or employment, each
 member, officer or employee of the commission shall swear or affirm that
 he or she possesses no interest in any corporation or association  hold-
 ing  a franchise, license, registration, certificate or permit issued by
 the commission. Thereafter, no member or officer of the commission shall
 hold any direct interest in or be employed by any applicant  for  or  by
 any  corporation, association or person holding a license, registration,
 franchise, certificate or permit issued by the commission for  a  period
 of  four  years  commencing  on  the date his or her membership with the
 commission terminates.  Further,  no  employee  of  the  commission  may
 acquire  any  direct or indirect interest in, or accept employment with,

 S. 1509--A                         52                         A. 2009--A
 
 any applicant for or any person holding a license,  registration,  fran-
 chise,  certificate  or  permit issued by the commission for a period of
 two years commencing at the termination of employment with  the  commis-
 sion.    THE COMMISSION MAY, BY RESOLUTION ADOPTED AT A PROPERLY NOTICED
 PUBLIC  MEETING,  WAIVE  FOR  GOOD  CAUSE  ANY  OF  ITS   PRE-EMPLOYMENT
 RESTRICTIONS FOR A PROSPECTIVE EMPLOYEE.
   § 2. This act shall take effect immediately.
 
                                  PART CC

   Section  1.  Subdivision  2  of section 254 of the racing, pari-mutuel
 wagering and breeding law is amended by adding a new paragraph h to read
 as follows:
   H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE
 THE ONGOING CARE OF RETIRED HORSES, PROVIDED,  HOWEVER,  THAT  THE  FUND
 SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES.
   §  2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering
 and breeding law is amended by adding a  new  paragraph  j  to  read  as
 follows:
   J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE
 THE  ONGOING  CARE  OF  RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND
 SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES.
   § 3. This act shall take effect immediately.

                                  PART DD
 
   Section 1. This Part enacts  into  law  legislation  relating  to  the
 office of gaming inspector general, the thoroughbred breeding and devel-
 opment  fund, the Harry M. Zweig memorial fund and prize payment amounts
 and revenue distributions of lottery game sales. Each component is whol-
 ly contained within a Subpart identified as Subparts A  through  D.  The
 effective  date  for  each  particular  provision  contained within such
 Subpart is set forth in the last section of such Subpart. Any  provision
 in  any section contained within a Subpart, including the effective date
 of the Subpart, which makes a reference to a section "of this act", when
 used in connection with that particular component, shall  be  deemed  to
 mean  and  refer to the corresponding section of the Subpart in which it
 is found. Section three of this Part sets forth  the  general  effective
 date of this Part.
 
                                 SUBPART A
 
   Section 1. Sections 1368, 1369, 1370, and 1371 of the racing, pari-mu-
 tuel  wagering  and  breeding law are renumbered sections 130, 131, 132,
 and 133.
   § 2. Title 9 of article 13 of the  racing,  pari-mutuel  wagering  and
 breeding law is REPEALED.
   § 3. Section 130 of the racing, pari-mutuel wagering and breeding law,
 as added by chapter 174 of the laws of 2013 and as renumbered by section
 one of this act, is amended to read as follows:
   §  130. Establishment of the office of gaming inspector general. There
 is hereby created within the commission the office of  gaming  inspector
 general.  The  head  of the office shall be the gaming inspector general
 who shall be appointed by the  governor  by  and  with  the  advice  and
 consent  of  the senate. The GAMING inspector general shall serve at the
 pleasure of the governor. The  GAMING  inspector  general  shall  report

 S. 1509--A                         53                         A. 2009--A
 
 directly  to  the  governor.  The  person  appointed as GAMING inspector
 general shall, upon his or her appointment, have not less than ten years
 professional experience in law, investigation, or auditing.  The  GAMING
 inspector general shall be compensated within the limits of funds avail-
 able  therefor, provided, however, such salary shall be no less than the
 salaries of certain state officers holding the  positions  indicated  in
 paragraph  (a)  of  subdivision one of section one hundred sixty-nine of
 the executive law.
   § 4. The section heading,  opening  paragraph  and  subdivision  7  of
 section  131  of  the  racing, pari-mutuel wagering and breeding law, as
 added by chapter 174 of the laws of 2013 and such section as  renumbered
 by section one of this act, are amended to read as follows:
   [State  gaming]  GAMING  inspector  general; functions and duties. The
 [state] gaming inspector general shall have  the  following  duties  and
 responsibilities:
   7.  establish  programs for training commission officers and employees
 [regarding] IN REGARD TO the prevention and elimination  of  corruption,
 fraud,  criminal activity, conflicts of interest or abuse in the commis-
 sion.
   § 5. The opening paragraph of section 132 of the  racing,  pari-mutuel
 wagering  and  breeding law, as added by chapter 174 of the laws of 2013
 and such section as renumbered by section one of this act, is amended to
 read as follows:
   The [state] gaming inspector general shall have the power to:
   § 6. Section 133 of the racing, pari-mutuel wagering and breeding law,
 as added by chapter 174 of the laws of 2013 and as renumbered by section
 one of this act, is amended to read as follows:
   § 133. Responsibilities of the commission and its officers and employ-
 ees. 1. Every commission officer or employee shall  report  promptly  to
 the   [state]   gaming  inspector  general  any  information  concerning
 corruption, fraud, criminal activity, conflicts of interest or abuse  by
 another  state  officer  or  employee  relating  to his or her office or
 employment, or by a person having business dealings with the  commission
 relating  to  those  dealings.  The  knowing  failure  of any officer or
 employee to so report shall be cause for removal from office or  employ-
 ment  or  other  appropriate  penalty under this article. Any officer or
 employee who acts pursuant to  this  subdivision  by  reporting  to  the
 [state]  gaming  inspector  general or other appropriate law enforcement
 official improper governmental action as  defined  in  section  seventy-
 five-b  of  the  civil  service  law  shall not be subject to dismissal,
 discipline or other adverse personnel action.
   2. The commission chair shall advise the governor within  ninety  days
 of  the  issuance of a report by the [state] gaming inspector general as
 to the remedial action that the commission has taken in response to  any
 recommendation for such action contained in such report.
   § 7. This act shall take effect immediately.
 
                                 SUBPART B
 
   Section  1.  Subdivision  1  of section 252 of the racing, pari-mutuel
 wagering and breeding law, as amended by section 11 of part A of chapter
 60 of the laws of 2012, is amended to read as follows:
   1. A corporation to be known as the New York state thoroughbred breed-
 ing and development fund corporation is hereby created. Such corporation
 shall be a body corporate and  politic  constituting  a  public  benefit
 corporation. It shall be administered by a board of directors consisting

 S. 1509--A                         54                         A. 2009--A
 
 of  the chair of the state gaming commission or his or her designee, the
 commissioner of agriculture and markets,  three  members  of  the  state
 gaming  commission  OR OTHER BONA FIDE RESIDENTS OF THE STATE WHO HAVE A
 COGENT  INTEREST  IN  THE THOROUGHBRED BREEDING INDUSTRY IN THE STATE as
 designated by the governor and six members appointed  by  the  governor,
 all  of whom are experienced or have been actively engaged in the breed-
 ing of thoroughbred horses in New York state, one, the president or  the
 executive  director  of  the statewide thoroughbred breeders association
 representing the majority of breeders of registered thoroughbreds in New
 York state, one upon the recommendation of the majority  leader  of  the
 senate,  one upon the recommendation of the speaker of the assembly, one
 upon the recommendation of the minority leader of the  senate,  and  one
 upon  the  recommendation of the minority leader of the assembly. Two of
 the appointed members shall initially serve for a two year term, two  of
 the  appointed  members  shall initially serve for a three year term and
 two of the appointed members shall initially serve for a four year term.
 All successors appointed members shall serve for a four year  term.  All
 members  shall  continue  in  office  until  their  successors have been
 appointed and qualified. The governor shall  designate  the  chair  from
 among the sitting members who shall serve as such at the pleasure of the
 governor.
   § 2. This act shall take effect immediately.
 
                                 SUBPART C
 
   Section  1.  Subdivision 1 of section 17 of the public officers law is
 amended by adding a new paragraph (aa) to read as follows:
   (AA) FOR THE PURPOSES OF  THIS  SECTION,  THE  TERM  "EMPLOYEE"  SHALL
 INCLUDE  THE  MEMBERS  OF  THE  HARRY  M. ZWEIG MEMORIAL FUND FOR EQUINE
 RESEARCH COMMITTEE.
   § 2. Section 703 of the racing, pari-mutuel wagering and breeding  law
 is amended by adding a new subdivision 3 to read as follows:
   3.  NOTWITHSTANDING  THE  PROVISIONS  OF  SECTION  ELEVEN OF THE STATE
 FINANCE LAW AND ANY OTHER INCONSISTENT PROVISION OF LAW,  THE  FUND  MAY
 ACQUIRE PROPERTY BY THE ACCEPTANCE OF CONDITIONAL GIFTS, GRANTS, DEVISES
 OR BEQUESTS GIVEN IN FURTHERANCE OF THE MISSION OF THE FUND.
   § 3. This act shall take effect immediately.
 
                                 SUBPART D
 
   Section  1.  Paragraph  2  of subdivision a of section 1612 of the tax
 law, as amended by chapter 174 of the laws of 2013, is amended  to  read
 as follows:
   (2) [sixty-five] SIXTY-FOUR AND ONE-FOURTH percent of the total amount
 for  which  tickets  have been sold for the "Instant Cash" game in which
 the participant purchases a preprinted ticket on which dollar amounts or
 symbols are concealed on the face or the back of such  ticket,  provided
 however  up  to  five  new  games may be offered during the fiscal year,
 [seventy-five] SEVENTY-FOUR AND ONE-FOURTH percent of the  total  amount
 for  which  tickets  have  been  sold  for  such five games in which the
 participant purchases a preprinted ticket on  which  dollar  amounts  or
 symbols are concealed on the face or the back of such ticket; or
   §  2. The opening paragraph of paragraph 1 of subdivision b of section
 1612 of the tax law, as amended by chapter 174 of the laws of  2013,  is
 amended to read as follows:

 S. 1509--A                         55                         A. 2009--A

   Notwithstanding  section  one  hundred twenty-one of the state finance
 law, on or before the  twentieth  day  of  each  month,  the  [division]
 COMMISSION shall pay into the state treasury, to the credit of the state
 lottery  fund  created by section ninety-two-c of the state finance law,
 NOT  LESS  THAN FORTY-FIVE PERCENT OF THE TOTAL AMOUNT FOR WHICH TICKETS
 HAVE BEEN SOLD FOR GAMES DEFINED IN PARAGRAPH FIVE OF SUBDIVISION  A  OF
 THIS  SECTION  DURING  THE  PRECEEDING MONTH, not less than [forty-five]
 THIRTY-FIVE percent of the total amount for which tickets have  be  sold
 for  games  defined  in  paragraph four of subdivision a of this section
 during the preceding month, not less than [thirty-five]  THIRTY  percent
 of  the  total amount for which tickets have been sold for games defined
 in paragraph three of subdivision a of this section during the preceding
 month, not less than twenty  AND  THREE-FOURTHS  percent  of  the  total
 amount  for  which tickets have been sold for games defined in paragraph
 two of subdivision  a  of  this  section  during  the  preceding  month,
 provided  however  that  for games with a prize payout of [seventy-five]
 SEVENTY-FOUR AND ONE-FOURTH percent of the total amount for which  tick-
 ets  have  been  sold, the [division] COMMISSION shall pay not less than
 ten AND THREE-FOURTHS percent of sales into the state treasury  and  not
 less than twenty-five percent of the total amount for which tickets have
 been  sold  for  games defined in paragraph one of subdivision a of this
 section during the preceding month; and the balance of the total revenue
 after payout for prizes for  games  known  as  "video  lottery  gaming,"
 including  any joint, multi-jurisdiction, and out-of-state video lottery
 gaming,
   § 3. Subdivision a of section 1614 of the tax law, as amended by chap-
 ter 170 of the laws of 1994, is amended to read as follows:
   a. No prize claim shall  be  valid  if  submitted  to  the  [division]
 COMMISSION  following  the expiration of a one-year time period from the
 date of the drawing or from the close of the game in which a  prize  was
 won,  and  the person otherwise entitled to such prize shall forfeit any
 claim or entitlement to such prize moneys. Unclaimed prize  money,  plus
 interest  earned thereon, shall be retained in the lottery prize account
 to be used for payment of special [lotto] or supplemental [lotto] prizes
 offered pursuant to the plan or plans specified in  this  article,  [or]
 AND  for  promotional  purposes  to supplement [other] games on an occa-
 sional basis [not to exceed sixteen weeks within any twelve month period
 pursuant to the plan or plans specified in this article].
   In the event that the director proposes to change any plan for the use
 of unclaimed prize funds or in the event the  director  intends  to  use
 funds  in  a  game  other  than the game from which such unclaimed prize
 funds were derived, the director of the budget, the chairperson  of  the
 senate  finance  committee, and the chairperson of the assembly ways and
 means committee shall be notified in writing  separately  detailing  the
 proposed changes to any plan prior to the implementation of the changes.
   § 4. This act shall take effect immediately.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or subpart of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or  subpart  thereof  directly involved in the controversy in which such
 judgment shall have been rendered. It  is  hereby  declared  to  be  the
 intent  of the legislature that this act would have been enacted even if
 such invalid provisions had not been included herein.

 S. 1509--A                         56                         A. 2009--A

   § 3. This act shall take effect immediately  provided,  however,  that
 the applicable effective date of Subparts A through D of this Part shall
 be as specifically set forth in the last section of such Subparts.
 
                                  PART EE
 
   Section  1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision
 b of section 1612 of the tax law are REPEALED and two new  subparagraphs
 (ii) and (iii) are added to read as follows:
   (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING
 AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA-
 TOR  OF  ANY  OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO
 SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE. THE AMOUNT  OF  THE
 VENDOR'S FEE SHALL BE CALCULATED AS FOLLOWS:
   (A)  WHEN  A  VENDOR  TRACK  IS LOCATED WITHIN DEVELOPMENT ZONE ONE AS
 DEFINED BY SECTION THIRTEEN  HUNDRED  TEN  OF  THE  RACING,  PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (B)  WHEN  A  VENDOR  TRACK  IS  LOCATED WITHIN ZONE TWO AS DEFINED BY
 SECTION THIRTEEN HUNDRED TEN OF THE  RACING,  PARI-MUTUEL  WAGERING  AND
 BREEDING  LAW, THE RATE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE AS FOLLOWS:
   (1) FORTY-THREE AND ONE-HALF PERCENT FOR A VENDOR TRACK  LOCATED  MORE
 THAN  FIFTEEN  MILES BUT LESS THAN FIFTY MILES FROM A DESTINATION RESORT
 GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF  THE  RACING,
 PARI-MUTUEL WAGERING AND BREEDING LAW;
   (2)  FORTY-NINE PERCENT FOR A VENDOR TACK LOCATED WITHIN FIFTEEN MILES
 OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT  TO  ARTICLE
 THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW;
   (3) FIFTY-ONE PERCENT FOR VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES
 BUT LESS THAN FIFTY MILES FROM A NATIVE AMERICAN CLASS III GAMING FACIL-
 ITY AS DEFINED IN 25 U.S.C. §2703(8);
   (4)  FIFTY-SIX PERCENT FOR A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES
 OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED  IN  25  U.S.C
 §2703(8);
   (B-1)  NOTWITHSTANDING  SUBPARAGRAPH  (B)  OF  THIS PARAGRAPH, FOR THE
 PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN  AND  ENDING  ON
 MARCH  THIRTY-FIRST,  TWO  THOUSAND  TWENTY,  FOR A VENDOR TRACK THAT IS
 LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-SEVEN AND
 ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK  AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (B-2)  NOTWITHSTANDING  SUBPARAGRAPH  (B)  OF  THIS PARAGRAPH, FOR THE
 PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN  AND  ENDING  ON
 MARCH  THIRTY-FIRST  TWO  THOUSAND  TWENTY,  FOR  A VENDOR TRACK THAT IS
 LOCATED WITHIN SARATOGA COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-NINE AND
 ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK  AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (C) WHEN A VIDEO LOTTERY FACILITY IS LOCATED AT AQUEDUCT RACETRACK, AT
 A  RATE  OF  FIFTY  PERCENT  OF  THE  TOTAL REVENUE WAGERED AT THE VIDEO
 LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO  THIS  CHAP-
 TER;
   (D)  WHEN  A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU
 OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED  PURSU-
 ANT  TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING LAW, AT A RATE OF  FORTY-FIVE  PERCENT  OF  THE  TOTAL  REVENUE

 S. 1509--A                         57                         A. 2009--A

 WAGERED  AT  THE  VIDEO  LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER.
   (III)  LESS  ANY  ADDITIONAL  VENDOR'S  FEES. ADDITIONAL VENDOR'S FEES
 SHALL BE CALCULATED AS FOLLOWS:
   (A) FOR A VENDOR TRACK THAT IS LOCATED WITHIN SULLIVAN COUNTY,  WITHIN
 DEVELOPMENT  ZONE  TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE
 RACING, PARI-MUTUEL WAGERING AND BREEDING LAW,  SUCH  ADDITIONAL  VENDOR
 FEE  SHALL BE FIFTEEN AND ONE-TENTH PERCENT OF THE TOTAL REVENUE WAGERED
 AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (B) FOR A VENDOR TRACK THAT IS LOCATED WITHIN ONTARIO  COUNTY,  WITHIN
 DEVELOPMENT  ZONE  TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE
 RACING, PARI-MUTUEL WAGERING AND BREEDING LAW,  SUCH  ADDITIONAL  VENDOR
 FEE  SHALL  BE  TEN  PERCENT  OF THE TOTAL REVENUE WAGERED AT THE VENDOR
 TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (C) FOR A VENDOR TRACK THAT IS LOCATED WITHIN SARATOGA COUNTY,  WITHIN
 DEVELOPMENT  ZONE  TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE
 RACING, PARI-MUTUEL WAGERING AND BREEDING LAW,  SUCH  ADDITIONAL  VENDOR
 FEE  SHALL  BE  TEN  PERCENT  OF THE TOTAL REVENUE WAGERED AT THE VENDOR
 TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (D) FOR A VENDOR TRACK THAT IS LOCATED WITHIN  ONEIDA  COUNTY,  WITHIN
 FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, SUCH ADDI-
 TIONAL  VENDOR  FEE  SHALL  BE  SIX AND FOUR-TENTHS PERCENT OF THE TOTAL
 REVENUE WAGERED AT THE VENDOR AFTER PAYOUT FOR PRIZES PURSUANT  TO  THIS
 CHAPTER.  THE  VENDOR TRACK SHALL FORFEIT THIS ADDITIONAL VENDOR FEE FOR
 ANY TIME PERIOD THAT THE VENDOR TRACK DOES NOT MAINTAIN AT LEAST  NINETY
 PERCENT  OF  FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR
 TWO THOUSAND SIXTEEN.
   § 2. Subdivision b of section 1612 of the tax law is amended by adding
 three new paragraphs 1-a, 1-b, and 1-c to read as follows:
   1-A. (I) NOTWITHSTANDING ANY PROVISION OF LAW  TO  THE  CONTRARY,  ANY
 OPERATORS  OF A VENDOR TRACK OR THE OPERATORS OF ANY OTHER VIDEO LOTTERY
 GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR-
 TY-FIRST, TWO THOUSAND EIGHTEEN SHALL DEPOSIT FROM THEIR VENDOR FEE INTO
 A SEGREGATED ACCOUNT AN AMOUNT  EQUAL  TO  FOUR  PERCENT  OF  THE  FIRST
 SIXTY-TWO  MILLION  FIVE  HUNDRED THOUSAND DOLLARS OF REVENUE WAGERED AT
 THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO  BE
 USED  EXCLUSIVELY  FOR  CAPITAL  INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH
 SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO  ONE  PERCENT
 OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER UNTIL THE EARLIER OF THE DESIGNATION
 OF  ONE  THOUSAND  VIDEO LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH
 FOUR OF SUBDIVISION A OF SECTION SIXTEEN  HUNDRED  SEVENTEEN-A  OF  THIS
 ARTICLE  OR  APRIL  FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR
 PERCENT OF ALL REVENUE WAGERED AT  THE  VIDEO  LOTTERY  GAMING  FACILITY
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO
 A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS.
   (II)  VENDOR  TRACKS  AND  VIDEO  LOTTERY  GAMING  FACILITIES SHALL BE
 PERMITTED TO WITHDRAW FUNDS FOR PROJECTS APPROVED BY THE  COMMISSION  TO
 IMPROVE  THE  FACILITIES  OF  THE  VENDOR  TRACK OR VIDEO LOTTERY GAMING
 FACILITY WHICH ENHANCE OR MAINTAIN THE  VIDEO  LOTTERY  GAMING  FACILITY
 INCLUDING,  BUT  NOT LIMITED TO HOTELS, OTHER LODGING FACILITIES, ENTER-
 TAINMENT  FACILITIES,  RETAIL  FACILITIES,  DINING  FACILITIES,   EVENTS
 ARENAS,  PARKING  GARAGES AND OTHER IMPROVEMENTS AND AMENITIES CUSTOMARY
 TO A GAMING FACILITY, PROVIDED, HOWEVER, THE  VENDOR  TRACKS  AND  VIDEO
 LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR UNRE-

 S. 1509--A                         58                         A. 2009--A
 
 IMBURSED  CAPITAL  AWARDS  APPROVED  PRIOR TO THE EFFECTIVE DATE OF THIS
 SUBPARAGRAPH.
   (III) ANY PROCEEDS FROM THE DIVESTITURE OF ANY ASSETS ACQUIRED THROUGH
 THESE  CAPITAL  FUNDS  OR ANY PRIOR CAPITAL AWARD MUST BE DEPOSITED INTO
 THIS SEGREGATED ACCOUNT, PROVIDED THAT IF  THE  VENDOR  TRACK  OR  VIDEO
 LOTTERY  GAMING FACILITY CEASES USE OF SUCH ASSET FOR GAMING PURPOSES OR
 TRANSFERS THE ASSET TO A RELATED  PARTY,  SUCH  VENDOR  TRACK  OR  VIDEO
 LOTTERY GAMING FACILITY SHALL DEPOSIT AN AMOUNT EQUAL TO THE FAIR MARKET
 VALUE OF THAT ASSET INTO THE ACCOUNT.
   (IV)  IN  THE  EVENT  A  VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY
 CEASES GAMING OPERATIONS, ANY BALANCE  IN  THE  ACCOUNT  ALONG  WITH  AN
 AMOUNT  EQUAL TO THE VALUE OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS
 FUND OR PRIOR CAPITAL AWARDS SHALL BE RETURNED TO THE STATE FOR  DEPOSIT
 INTO  THE  STATE  LOTTERY  FUND  FOR EDUCATION AID, EXCEPT FOR AQUEDUCT,
 WHICH SHALL RETURN TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY  FUND
 FOR  EDUCATION  AID ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A
 PROJECT PURSUANT TO AN AGREEMENT  WITH  THE  OPERATOR  TO  CONSTRUCT  AN
 EXPANSION  OF  THE  FACILITY, HOTEL, AND CONVENTION AND EXHIBITION SPACE
 REQUIRING A MINIMUM CAPITAL INVESTMENT OF THREE HUNDRED MILLION  DOLLARS
 AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT.
   (V)  THE  COMPTROLLER  OR  HIS  LEGALLY  AUTHORIZED  REPRESENTATIVE IS
 AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT  OF  THESE  SEGRE-
 GATED CAPITAL ACCOUNTS.
   (VI) NOTWITHSTANDING  SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH,
 A  VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP TO TWO MILLION
 DOLLARS FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF  COURSE
 AT THE VENDOR TRACK.
   (VII)  ANY  BALANCE REMAINING IN THE CAPITAL AWARD ACCOUNT OF A VENDOR
 TRACK OR OPERATOR OR ANY OTHER VIDEO LOTTERY GAMING FACILITY AS OF MARCH
 THIRTY-FIRST, TWO THOUSAND NINETEEN SHALL  BE  TRANSFERRED  FOR  DEPOSIT
 INTO A SEGREGATED ACCOUNT ESTABLISHED BY THIS SUBPARAGRAPH.
   1-B.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY
 ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO  SUBDIVISION  I
 OF  SECTION  SIXTEEN  HUNDRED  SEVENTEEN-A  OF THIS ARTICLE SHALL NOT BE
 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
 GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR  FEES
 PAYABLE  TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES PAYA-
 BLE TO THE DIVISION'S VIDEO LOTTERY  GAMING  EQUIPMENT  CONTRACTORS,  OR
 RACING SUPPORT PAYMENTS.
   1-C.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERA-
 TOR OF A VENDOR TRACK OR THE OPERATOR OF ANY OTHER VIDEO LOTTERY  GAMING
 FACILITY  SHALL  FUND  A  MARKETING  AND  PROMOTION  PROGRAM  OUT OF THE
 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL  MARKETING  PLAN  FOR
 THE  REVIEW  AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU-
 MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE  COMMISSION.
 THE  COMMISSION  SHALL  HAVE  THE  RIGHT  TO REJECT ANY ADVERTISEMENT OR
 PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR  INTERESTS  OF
 THE LOTTERY OR ITS PROGRAMS.
   § 3. This act shall take effect immediately; provided, however, claus-
 es  (A), (B) and (C) of subparagraph (iii) of paragraph 1 of subdivision
 b of section 1612 of the tax law as added by section  one  of  this  act
 shall  take effect April 1, 2020 and shall expire and be deemed repealed
 on March 31, 2023; and provided, however,  clause  (D)  of  subparagraph
 (iii)  of paragraph 1 of subdivision b of section 1612 of the tax law as
 added by section one of this act shall take effect  June  30,  2019  and
 shall expire and be deemed repealed March 31, 2023.

 S. 1509--A                         59                         A. 2009--A
 
                                  PART FF
 
   Section  1.  Subdivision 25 of section 1301 of the racing, pari-mutuel
 wagering and breeding law, as added by chapter 174 of the laws of  2013,
 is amended to read as follows:
   25. "Gross gaming revenue". The total of all sums actually received by
 a  gaming facility licensee from gaming operations less the total of all
 sums paid out as winnings to patrons; provided, however, that the  total
 of  all  sums paid out as winnings to patrons shall not include the cash
 equivalent value of any merchandise or thing  of  value  included  in  a
 jackpot  or  payout[; provided further, that the issuance to or wagering
 by patrons of a gaming facility of any promotional gaming  credit  shall
 not be taxable for the purposes of determining gross revenue].
   § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 2 to read as follows:
   2. PERMISSIBLE DEDUCTIONS. (A) A GAMING FACILITY MAY DEDUCT FROM GROSS
 GAMING  REVENUE THE AMOUNT OF APPROVED PROMOTIONAL GAMING CREDITS ISSUED
 TO AND WAGERED BY  PATRONS  OF  SUCH  GAMING  FACILITY.  THE  AMOUNT  OF
 APPROVED PROMOTIONAL CREDITS SHALL BE CALCULATED AS FOLLOWS:
   (1)  FOR  THE  PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND EIGHTEEN
 AND ENDING ON MARCH THIRTY-FIRST,  TWO  THOUSAND  TWENTY,  AN  AGGREGATE
 MAXIMUM  AMOUNT  EQUAL  TO  NINETEEN  PERCENT  OF THE BASE TAXABLE GROSS
 GAMING REVENUE AMOUNT DURING THE SPECIFIED PERIOD;
   (2) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY  AND
 ENDING  ON  MARCH  THIRTY-FIRST,  TWO  THOUSAND  TWENTY-THREE, A MAXIMUM
 AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVEN-
 UE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD; AND
   (3) FOR THE PERIOD COMMENCING ON APRIL  FIRST,  TWO  THOUSAND  TWENTY-
 THREE  AND  THEREAFTER, A MAXIMUM AMOUNT EQUAL TO FIFTEEN PERCENT OF THE
 BASE TAXABLE GROSS GAMING REVENUE AMOUNT FOR EACH FISCAL YEAR DURING THE
 SPECIFIED PERIOD.
   (B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION,  "BASE  TAXABLE
 GROSS  GAMING REVENUE AMOUNT" MEANS THAT PORTION OF GROSS GAMING REVENUE
 NOT ATTRIBUTABLE TO DEDUCTIBLE PROMOTIONAL CREDIT.
   (C) ANY TAX DUE ON PROMOTIONAL CREDITS DEDUCTED DURING THE FISCAL YEAR
 IN EXCESS OF THE ALLOWABLE DEDUCTION SHALL BE PAID  WITHIN  THIRTY  DAYS
 FROM THE END OF THE FISCAL YEAR.
   (D)  ONLY  PROMOTIONAL  CREDITS  THAT ARE ISSUED PURSUANT TO A WRITTEN
 PLAN APPROVED BY THE COMMISSION AS DESIGNED TO INCREASE REVENUE  AT  THE
 FACILITY MAY BE ELIGIBLE FOR SUCH DEDUCTION. THE COMMISSION, IN CONJUNC-
 TION  WITH  THE DIRECTOR OF THE BUDGET, MAY SUSPEND APPROVAL OF ANY PLAN
 WHENEVER THEY JOINTLY DETERMINE THAT THE USE OF THE PROMOTIONAL  CREDITS
 UNDER  SUCH  PLAN  IS  NOT EFFECTIVE IN INCREASING THE AMOUNT OF REVENUE
 EARNED.
   § 3. This act shall take effect immediately.
 
                                  PART GG
 
   Section 1. Subdivision 12 of section 502 of  the  racing,  pari-mutuel
 wagering and breeding law is amended to read as follows:
   12.  A.  The  board of directors shall hold an annual meeting AND MEET
 NOT LESS THAN QUARTERLY.
   B. EACH BOARD MEMBER SHALL  RECEIVE,  NOT  LESS  THAN  SEVEN  DAYS  IN
 ADVANCE  OF  A  MEETING, DOCUMENTATION NECESSARY TO ENSURE KNOWLEDGEABLE
 AND ENGAGED PARTICIPATION. SUCH  DOCUMENTATION  SHALL  INCLUDE  MATERIAL
 RELEVANT  TO  EACH  AGENDA  ITEM  INCLUDING  BACKGROUND  INFORMATION  OF

 S. 1509--A                         60                         A. 2009--A
 
 DISCUSSION ITEMS, RESOLUTIONS TO BE CONSIDERED AND ASSOCIATED DOCUMENTS,
 A MONTHLY FINANCIAL STATEMENT WHICH SHALL INCLUDE AN UPDATED  CASH  FLOW
 STATEMENT  AND  AGED  PAYABLE  LISTING  OF  INDUSTRY PAYABLES, FINANCIAL
 STATEMENTS, MANAGEMENT REPORTS, COMMITTEE REPORTS AND COMPLIANCE ITEMS.
   C.  STAFF  OF  THE  CORPORATION SHALL ANNUALLY SUBMIT TO THE BOARD FOR
 APPROVAL A FINANCIAL PLAN ACCOMPANIED BY EXPENDITURE, REVENUE  AND  CASH
 FLOW  PROJECTIONS.  THE  PLAN  SHALL  CONTAIN PROJECTION OF REVENUES AND
 EXPENDITURES BASED ON REASONABLE AND APPROPRIATE ASSUMPTIONS AND METHODS
 OF ESTIMATIONS, AND SHALL PROVIDE  THAT  OPERATIONS  WILL  BE  CONDUCTED
 WITHIN  THE  CASH  RESOURCES  AVAILABLE.  THE  FINANCIAL PLAN SHALL ALSO
 INCLUDE INFORMATION REGARDING PROJECTED  EMPLOYMENT  LEVELS,  COLLECTIVE
 BARGAINING  AGREEMENTS  AND  OTHER  ACTIONS  RELATING TO EMPLOYEE COSTS,
 CAPITAL CONSTRUCTION AND SUCH OTHER MATTERS AS THE BOARD MAY DIRECT.
   D. STAFF OF THE CORPORATION SHALL PREPARE AND SUBMIT TO THE BOARD ON A
 QUARTERLY BASIS A REPORT OF SUMMARIZED  BUDGET  DATA  DEPICTING  OVERALL
 TRENDS,  BY  MAJOR  CATEGORY WITHIN FUNDS, OF ACTUAL REVENUES AND BUDGET
 EXPENDITURES FOR THE ENTIRE BUDGET RATHER THAN INDIVIDUAL LINE ITEMS, AS
 WELL  AS  UPDATED  QUARTERLY  CASH  FLOW  PROJECTIONS  OF  RECEIPTS  AND
 DISBURSEMENTS.  SUCH  REPORTS SHALL COMPARE REVENUE ESTIMATES AND APPRO-
 PRIATIONS AS SET FORTH IN SUCH BUDGET AND IN THE QUARTERLY  REVENUE  AND
 EXPENDITURE  PROJECTIONS  SUBMITTED  THEREWITH, WITH THE ACTUAL REVENUES
 AND EXPENDITURES MADE TO DATE. SUCH REPORTS SHALL  ALSO  COMPARE  ACTUAL
 RECEIPTS AND DISBURSEMENTS WITH THE ESTIMATES CONTAINED IN THE CASH FLOW
 PROJECTIONS, TOGETHER WITH VARIANCES AND THEIR EXPLANATION. ALL QUARTER-
 LY  REPORTS  SHALL  BE ACCOMPANIED BY RECOMMENDATIONS FROM THE PRESIDENT
 SETTING FORTH ANY REMEDIAL ACTION NECESSARY TO RESOLVE  ANY  UNFAVORABLE
 BUDGET  VARIANCE INCLUDING THE OVERESTIMATION OF REVENUES AND THE UNDER-
 ESTIMATION OF APPROPRIATIONS. THESE REPORTS SHALL  BE  COMPLETED  WITHIN
 THIRTY  DAYS AFTER THE END OF EACH QUARTER AND SHALL BE SUBMITTED TO THE
 BOARD BY THE CORPORATION COMPTROLLER.
   E. REVENUE ESTIMATES AND THE FINANCIAL PLAN SHALL BE REGULARLY REEXAM-
 INED BY THE BOARD AND STAFF AND SHALL PROVIDE A MODIFIED FINANCIAL  PLAN
 IN SUCH DETAIL AND WITHIN SUCH TIME PERIODS AS THE BOARD MAY REQUIRE. IN
 THE  EVENT  OF  REDUCTIONS  IN  SUCH  REVENUE ESTIMATES, THE BOARD SHALL
 CONSIDER  AND  APPROVE  SUCH  ADJUSTMENTS  IN  REVENUE   ESTIMATES   AND
 REDUCTIONS  IN TOTAL EXPENDITURES AS MAY BE NECESSARY TO CONFORM TO SUCH
 REVISED REVENUE ESTIMATES OR AGGREGATE EXPENDITURE LIMITATIONS.
   § 2. Section 503 of the racing, pari-mutuel wagering and breeding  law
 is amended by adding a new subdivision 15 to read as follows:
   15.  NOTWITHSTANDING  ANY  INCONSISTENT  PROVISION  OF LAW, A REGIONAL
 OFF-TRACK BETTING CORPORATION MAY, PURSUANT TO A WRITTEN PLAN AND AGREE-
 MENT WITH ANOTHER REGIONAL OFF-TRACK BETTING CORPORATION APPROVED BY THE
 COMMISSION, ASSUME THE OFF-TRACK BETTING OPERATIONS AUTHORIZED BY  ARTI-
 CLE  FIVE-A  OF  THIS  CHAPTER  OF  THE OTHER REGIONAL OFF-TRACK BETTING
 CORPORATION. DURING THE DURATION OF ANY SUCH AGREEMENT, THE  REGIONS  OF
 ANY  REGIONAL OFF-TRACK BETTING CORPORATIONS, AS DEFINED BY SECTION FIVE
 HUNDRED NINETEEN OF THIS CHAPTER SHALL  BE  DEEMED  COMBINED,  PROVIDED,
 HOWEVER,  THE  COMBINING  OF  SUCH REGIONS SHALL NOT IMPACT THE AUTHORI-
 ZATION OF A REGIONAL OFF-TRACK BETTING  CORPORATION  RELINQUISHING  OFF-
 TRACK  BETTING  OPERATIONS TO BE INCORPORATED, EXERCISE OTHER POWERS, OR
 TO CONDUCT ANY OTHER ACTIVITIES PERMITTED OR AUTHORIZED BY LAW.
   § 3. Subdivision 2-a of section 1009 of the racing, pari-mutuel wager-
 ing and breeding law, is amended by adding a new paragraph (c)  to  read
 as follows:
   (C)  THE  BOARD  MAY  AUTHORIZE  A SPECIAL DEMONSTRATION PROJECT TO BE
 LOCATED IN ANY FACILITY LICENSED PURSUANT TO ARTICLE  THIRTEEN  OF  THIS

 S. 1509--A                         61                         A. 2009--A
 
 CHAPTER.  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION
 FIVE OF THIS SECTION, AN ADMISSION FEE  SHALL  NOT  BE  REQUIRED  FOR  A
 DEMONSTRATION PROJECT AUTHORIZED IN THIS PARAGRAPH. PROVIDED HOWEVER, ON
 ANY  DAY  WHEN  A REGIONAL HARNESS TRACK CONDUCTS A LIVE RACE MEETING, A
 DEMONSTRATION FACILITY WITHIN THAT REGION  SHALL  PREDOMINANTLY  DISPLAY
 THE LIVE VIDEO OF SUCH REGIONAL HARNESS TRACK.
   § 4. This act shall take effect immediately.
 
                                  PART HH
 
   Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  1
 of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
 follows:
   (a) Any  racing  association  or  corporation  or  regional  off-track
 betting  corporation,  authorized  to conduct pari-mutuel wagering under
 this chapter, desiring to display the simulcast of horse races on  which
 pari-mutuel  betting shall be permitted in the manner and subject to the
 conditions provided for in this article may apply to the commission  for
 a  license  so to do. Applications for licenses shall be in such form as
 may be prescribed by the commission and shall contain  such  information
 or  other material or evidence as the commission may require. No license
 shall be issued by the commission authorizing the simulcast transmission
 of thoroughbred races from a track located in Suffolk  county.  The  fee
 for  such  licenses shall be five hundred dollars per simulcast facility
 and for account wagering licensees that do not operate either  a  simul-
 cast facility that is open to the public within the state of New York or
 a  licensed racetrack within the state, twenty thousand dollars per year
 payable by the licensee to the commission for deposit into  the  general
 fund.  Except  as  provided  in  this  section, the commission shall not
 approve any application to conduct simulcasting into individual or group
 residences, homes or other areas for the purposes of  or  in  connection
 with  pari-mutuel wagering. The commission may approve simulcasting into
 residences, homes or other areas to be conducted jointly by one or  more
 regional  off-track  betting corporations and one or more of the follow-
 ing: a franchised corporation,  thoroughbred  racing  corporation  or  a
 harness racing corporation or association; provided (i) the simulcasting
 consists  only of those races on which pari-mutuel betting is authorized
 by this chapter at one or more simulcast  facilities  for  each  of  the
 contracting  off-track  betting  corporations which shall include wagers
 made in accordance with  section  one  thousand  fifteen,  one  thousand
 sixteen  and  one  thousand  seventeen of this article; provided further
 that the contract provisions or other simulcast  arrangements  for  such
 simulcast  facility  shall  be no less favorable than those in effect on
 January first, two thousand  five;  (ii)  that  each  off-track  betting
 corporation  having  within  its  geographic boundaries such residences,
 homes or other areas technically  capable  of  receiving  the  simulcast
 signal  shall be a contracting party; (iii) the distribution of revenues
 shall be subject to contractual agreement of  the  parties  except  that
 statutory  payments  to  non-contracting  parties,  if  any,  may not be
 reduced; provided, however, that nothing herein to  the  contrary  shall
 prevent a track from televising its races on an irregular basis primari-
 ly for promotional or marketing purposes as found by the commission. For
 purposes of this paragraph, the provisions of section one thousand thir-
 teen  of  this  article  shall  not  apply. Any agreement authorizing an
 in-home simulcasting experiment commencing prior to May fifteenth, nine-

 S. 1509--A                         62                         A. 2009--A
 
 teen hundred ninety-five, may, and all its terms, be extended until June
 thirtieth, two thousand [nineteen] TWENTY-FOUR; provided, however,  that
 any  party  to such agreement may elect to terminate such agreement upon
 conveying written notice to all other parties of such agreement at least
 forty-five  days  prior  to  the  effective date of the termination, via
 registered mail. Any party to an agreement receiving such notice  of  an
 intent  to  terminate, may request the commission to mediate between the
 parties new terms and conditions in a replacement agreement between  the
 parties  as will permit continuation of an in-home experiment until June
 thirtieth, two thousand [nineteen]  TWENTY-FOUR;  and  (iv)  no  in-home
 simulcasting  in  the  thoroughbred special betting district shall occur
 without the approval of the regional thoroughbred track.
   § 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
 section  2  of  part GG of chapter 59 of the laws of 2018, is amended to
 read as follows:
   (iii) Of the sums retained by a receiving track located in Westchester
 county on races received from a franchised corporation, for  the  period
 commencing January first, two thousand eight and continuing through June
 thirtieth,  two  thousand [nineteen] TWENTY-FOUR, the amount used exclu-
 sively for purses to be awarded at races  conducted  by  such  receiving
 track  shall  be  computed  as follows: of the sums so retained, two and
 one-half percent of the total pools. Such amount shall be  increased  or
 decreased  in  the  amount  of  fifty percent of the difference in total
 commissions determined by  comparing  the  total  commissions  available
 after  July  twenty-first,  nineteen  hundred  ninety-five  to the total
 commissions that would have been available to such track prior  to  July
 twenty-first, nineteen hundred ninety-five.
   §  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  3
 of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
 follows:
   The provisions of this section shall govern the simulcasting of  races
 conducted  at thoroughbred tracks located in another state or country on
 any day during which a franchised corporation is conducting a race meet-
 ing in Saratoga county at Saratoga  thoroughbred  racetrack  until  June
 thirtieth, two thousand [nineteen] TWENTY-FOUR and on any day regardless
 of  whether or not a franchised corporation is conducting a race meeting
 in Saratoga county at Saratoga thoroughbred racetrack after June thirti-
 eth, two thousand [nineteen] TWENTY-FOUR. On any day on  which  a  fran-
 chised corporation has not scheduled a racing program but a thoroughbred
 racing  corporation located within the state is conducting racing, every
 off-track betting  corporation  branch  office  and  every  simulcasting
 facility  licensed  in  accordance with section one thousand seven (that
 [have] HAS entered into a written agreement with such facility's  repre-
 sentative  horsemen's  organization, as approved by the commission), one
 thousand eight, or one thousand nine of this article shall be authorized
 to accept wagers and display the live simulcast signal from thoroughbred
 tracks located in another  state  or  foreign  country  subject  to  the
 following provisions:
   § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
 and  breeding  law,  as amended by section 4 of part GG of chapter 59 of
 the laws of 2018, is amended to read as follows:
   1. The provisions of this section shall  govern  the  simulcasting  of
 races  conducted  at  harness tracks located in another state or country
 during the period July first, nineteen hundred ninety-four through  June

 S. 1509--A                         63                         A. 2009--A
 
 thirtieth,  two  thousand  [nineteen]  TWENTY-FOUR.  This  section shall
 supersede all inconsistent provisions of this chapter.
   §  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  5
 of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
 follows:
   The provisions of this section shall govern the simulcasting of  races
 conducted  at thoroughbred tracks located in another state or country on
 any day during which a franchised corporation is not conducting  a  race
 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
 thirtieth,  two thousand [nineteen] TWENTY-FOUR. Every off-track betting
 corporation branch office and every simulcasting  facility  licensed  in
 accordance  with  section  one  thousand  seven that have entered into a
 written agreement with such facility's representative horsemen's  organ-
 ization  as  approved by the commission, one thousand eight or one thou-
 sand nine of this article shall  be  authorized  to  accept  wagers  and
 display  the  live  full-card  simulcast  signal  of thoroughbred tracks
 (which may include quarter horse or mixed  meetings  provided  that  all
 such wagering on such races shall be construed to be thoroughbred races)
 located  in  another  state or foreign country, subject to the following
 provisions; provided,  however,  no  such  written  agreement  shall  be
 required of a franchised corporation licensed in accordance with section
 one thousand seven of this article:
   §  6. The opening paragraph of section 1018 of the racing, pari-mutuel
 wagering and breeding law, as amended by section 6 of part GG of chapter
 59 of the laws of 2018, is amended to read as follows:
   Notwithstanding any other provision of this chapter,  for  the  period
 July  twenty-fifth, two thousand one through September eighth, two thou-
 sand [eighteen] TWENTY-THREE, when a franchised corporation is  conduct-
 ing  a race meeting within the state at Saratoga Race Course, every off-
 track betting corporation branch office and every simulcasting  facility
 licensed in accordance with section one thousand seven (that has entered
 into  a written agreement with such facility's representative horsemen's
 organization as approved by the commission), one thousand eight  or  one
 thousand  nine  of this article shall be authorized to accept wagers and
 display the live simulcast signal from thoroughbred  tracks  located  in
 another  state, provided that such facility shall accept wagers on races
 run at all in-state thoroughbred  tracks  which  are  conducting  racing
 programs subject to the following provisions; provided, however, no such
 written agreement shall be required of a franchised corporation licensed
 in accordance with section one thousand seven of this article.
   §  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
 racing, pari-mutuel wagering and breeding law and other laws relating to
 simulcasting, as amended by section 7 of part GG of chapter  59  of  the
 laws of 2018, is amended to read as follows:
   §  32.  This act shall take effect immediately and the pari-mutuel tax
 reductions in section six  of  this  act  shall  expire  and  be  deemed
 repealed  on  July  1,  [2019]  2024;  provided,  however,  that nothing
 contained herein shall be deemed to affect the  application,  qualifica-
 tion,  expiration,  or  repeal  of  any  provision of law amended by any
 section of this act, and such provisions shall be applied  or  qualified
 or  shall  expire  or be deemed repealed in the same manner, to the same
 extent and on the same date as the case may be as otherwise provided  by
 law;  provided  further, however, that sections twenty-three and twenty-
 five of this act shall remain in full force and effect only until May 1,
 1997 and at such time shall be deemed to be repealed.

 S. 1509--A                         64                         A. 2009--A
 
   § 8. Section 54 of chapter 346 of  the  laws  of  1990,  amending  the
 racing, pari-mutuel wagering and breeding law and other laws relating to
 simulcasting  and the imposition of certain taxes, as amended by section
 8 of part GG of chapter 59 of the laws of 2018, is amended  to  read  as
 follows:
   §  54.  This  act  shall  take  effect immediately; provided, however,
 sections three through twelve of this act shall take effect  on  January
 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
 ing  law, as added by section thirty-eight of this act, shall expire and
 be deemed repealed on July 1, [2019] 2024; and section eighteen of  this
 act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
 two of this act shall take effect as of the same date as chapter 772  of
 the laws of 1989 took effect.
   §  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
 pari-mutuel wagering and breeding law, as amended by section 9  of  part
 GG of chapter 59 of the laws of 2018, is amended to read as follows:
   (a)  The  franchised  corporation  authorized  under  this  chapter to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute all sums deposited in any pari-mutuel pool to the holders  of
 winning  tickets therein, provided such tickets be presented for payment
 before April first of the year following the  year  of  their  purchase,
 less  an  amount  which  shall be established and retained by such fran-
 chised corporation of between twelve to  seventeen  per  centum  of  the
 total  deposits in pools resulting from on-track regular bets, and four-
 teen to twenty-one per centum of the total deposits in  pools  resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total  deposits in pools resulting from on-track exotic bets and fifteen
 to thirty-six per centum of the total deposits in pools  resulting  from
 on-track  super  exotic  bets, plus the breaks. The retention rate to be
 established is subject to the prior approval of the gaming commission.
   Such rate may not be changed more than once per calendar quarter to be
 effective on the first day of the calendar quarter.  "Exotic  bets"  and
 "multiple  bets"  shall  have  the  meanings  set  forth in section five
 hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
 meaning  set  forth  in  section  three hundred one of this chapter. For
 purposes of this section, a "pick six bet" shall mean a  single  bet  or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
 retained there shall be paid  by  such  franchised  corporation  to  the
 commissioner  of  taxation and finance, as a reasonable tax by the state
 for the privilege of conducting pari-mutuel betting on the races run  at
 the  race  meetings  held  by such franchised corporation, the following
 percentages of the total pool for regular and  multiple  bets  five  per
 centum  of regular bets and four per centum of multiple bets plus twenty
 per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
 centum  plus  twenty per centum of the breaks, and for super exotic bets
 seven and one-half per centum plus fifty per centum of the breaks.
   For the  period  June  first,  nineteen  hundred  ninety-five  through
 September  ninth,  nineteen  hundred  ninety-nine,  such  tax on regular
 wagers shall be three per centum and such tax on multiple  wagers  shall
 be  two  and  one-half per centum, plus twenty per centum of the breaks.

 S. 1509--A                         65                         A. 2009--A
 
 For the period September tenth,  nineteen  hundred  ninety-nine  through
 March  thirty-first,  two  thousand one, such tax on all wagers shall be
 two and six-tenths per centum and for the period April first, two  thou-
 sand  one through December thirty-first, two thousand [nineteen] TWENTY-
 FOUR, such tax on all wagers shall be one  and  six-tenths  per  centum,
 plus,  in  each such period, twenty per centum of the breaks. Payment to
 the New York state thoroughbred breeding and development  fund  by  such
 franchised  corporation  shall  be  one-half  of one per centum of total
 daily on-track pari-mutuel pools resulting from  regular,  multiple  and
 exotic bets and three per centum of super exotic bets provided, however,
 that  for  the  period  September  tenth,  nineteen  hundred ninety-nine
 through March thirty-first, two thousand  one,  such  payment  shall  be
 six-tenths  of  one per centum of regular, multiple and exotic pools and
 for the period April first, two thousand one  through  December  thirty-
 first,  two  thousand  [nineteen]  TWENTY-FOUR,  such  payment  shall be
 seven-tenths of one per centum of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART II
 
   Section 1. The  racing,  pari-mutuel  wagering  and  breeding  law  is
 amended by adding a new article XI-A to read as follows:
                               ARTICLE XI-A
                     INTERSTATE COMPACT ON ANTI-DOPING
                        AND DRUG TESTING STANDARDS
 SECTION 1113. PURPOSES.
         1114. DEFINITIONS.
         1115. COMPOSITION AND MEETINGS OF COMPACT COMMISSION.
         1116. OPERATION OF COMPACT COMMISSION.
         1117. GENERAL POWERS AND DUTIES.
         1118. OTHER POWERS AND DUTIES.
         1119. COMPACT RULE MAKING.
         1120. STATUS AND RELATIONSHIP TO MEMBER STATES.
         1121. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES.
         1122. ENFORCEMENT OF COMPACT.
         1123. LEGAL ACTIONS AGAINST COMPACT.
         1124. RESTRICTIONS ON AUTHORITY.
         1125. CONSTRUCTION, SAVINGS AND SEVERABILITY.
   § 1113. PURPOSES. THE PURPOSES OF THE COMPACT ARE:
   A.  TO ENABLE MEMBER STATES TO ACT JOINTLY AND COOPERATIVELY TO CREATE
 MORE UNIFORM, EFFECTIVE, AND EFFICIENT BREED SPECIFIC  RULES  AND  REGU-
 LATIONS  RELATING TO THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDI-
 CATIONS FOR THE HEALTH AND WELFARE OF THE HORSE  AND  THE  INTEGRITY  OF
 RACING, AND TESTING FOR SUCH SUBSTANCES, IN OR AFFECTING A MEMBER STATE;
 AND
   B. TO AUTHORIZE THE NEW YORK STATE GAMING COMMISSION TO PARTICIPATE IN
 THE COMPACT.
   §  1114.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   A. "COMPACT COMMISSION" MEANS THE ORGANIZATION OF DELEGATES  FROM  THE
 MEMBER  STATES  THAT IS AUTHORIZED AND EMPOWERED BY THE COMPACT TO CARRY
 OUT THE PURPOSES OF THE COMPACT;
   B. "COMPACT RULE" MEANS A RULE OR REGULATION ADOPTED BY A MEMBER STATE
 REGULATING THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS FOR
 THE HEALTH AND WELFARE OF THE HORSE AND THE  INTEGRITY  OF  RACING,  AND

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 TESTING  FOR  SUCH  SUBSTANCES,  IN  LIVE  PARI-MUTUEL HORSE RACING THAT
 OCCURS IN OR AFFECTS SUCH STATES;
   C. "DELEGATE" MEANS THE CHAIRPERSON OF THE MEMBER STATE RACING COMMIS-
 SION  OR  SIMILAR REGULATORY BODY IN A STATE, OR SUCH PERSON'S DESIGNEE,
 WHO REPRESENTS THE MEMBER STATE, AS  A  VOTING  MEMBER  OF  THE  COMPACT
 COMMISSION AND ANYONE WHO IS SERVING AS SUCH PERSON'S ALTERNATE;
   D.  "EQUINE  DRUG RULE" MEANS A RULE OR REGULATION THAT RELATES TO THE
 ADMINISTRATION OF DRUGS, MEDICATIONS, OR OTHER  SUBSTANCES  TO  A  HORSE
 THAT  MAY  PARTICIPATE  IN  LIVE  HORSE RACING WITH PARI-MUTUEL WAGERING
 INCLUDING, BUT NOT LIMITED TO, THE REGULATION OF THE PERMISSIBLE USE  OF
 SUCH SUBSTANCES TO ENSURE THE INTEGRITY OF RACING AND THE HEALTH, SAFETY
 AND  WELFARE  OF RACE HORSES, APPROPRIATE SANCTIONS FOR RULE VIOLATIONS,
 AND QUALITY LABORATORY TESTING PROGRAMS TO DETECT SUCH SUBSTANCES IN THE
 BODILY SYSTEM OF A RACE HORSE;
   E. "LIVE RACING" MEANS LIVE HORSE RACING WITH PARI-MUTUEL WAGERING;
   F. "MEMBER STATE" MEANS EACH STATE THAT HAS ENACTED THE COMPACT;
   G. "NATIONAL INDUSTRY STAKEHOLDER" MEANS A NON-GOVERNMENTAL  ORGANIZA-
 TION  THAT  FROM  A NATIONAL PERSPECTIVE SIGNIFICANTLY REPRESENTS ONE OR
 MORE CATEGORIES OF PARTICIPANTS IN LIVE RACING AND PARI-MUTUEL WAGERING;
   H. "PARTICIPANTS IN LIVE RACING" MEANS ALL PERSONS WHO PARTICIPATE IN,
 OPERATE, PROVIDE INDUSTRY SERVICES FOR, OR ARE INVOLVED WITH LIVE RACING
 WITH PARI-MUTUEL WAGERING;
   I. "STATE" MEANS EACH OF THE SEVERAL STATES OF THE UNITED STATES,  THE
 DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO RICO, AND EACH TERRITO-
 RY OR POSSESSION OF THE UNITED STATES; AND
   J. "STATE RACING COMMISSION" MEANS THE STATE RACING COMMISSION, OR ITS
 EQUIVALENT,  IN  EACH  MEMBER  STATE. WHERE A MEMBER STATE HAS MORE THAN
 ONE, IT SHALL MEAN ALL SUCH RACING COMMISSIONS, OR THEIR EQUIVALENTS.
   § 1115. COMPOSITION AND MEETINGS OF  COMPACT  COMMISSION.  THE  MEMBER
 STATES SHALL CREATE AND PARTICIPATE IN A COMPACT COMMISSION AS FOLLOWS:
   A.  THE COMPACT SHALL COME INTO FORCE WHEN ENACTED BY ANY TWO ELIGIBLE
 STATES, AND SHALL THEREAFTER BECOME EFFECTIVE AS  TO  ANY  OTHER  MEMBER
 STATE  THAT ENACTS THE COMPACT. ANY STATE THAT HAS ADOPTED OR AUTHORIZED
 PARI-MUTUEL WAGERING OR LIVE HORSE RACING SHALL BE ELIGIBLE TO BECOME  A
 PARTY TO THE COMPACT. A COMPACT RULE SHALL NOT BECOME EFFECTIVE IN A NEW
 MEMBER STATE BASED MERELY UPON IT ENTERING THE COMPACT.
   B. THE MEMBER STATES HEREBY CREATE THE INTERSTATE ANTI-DOPING AND DRUG
 TESTING STANDARDS COMPACT COMMISSION, A BODY CORPORATE AND AN INTERSTATE
 GOVERNMENTAL  ENTITY OF THE MEMBER STATES, TO COORDINATE THE RULE MAKING
 ACTIONS OF EACH MEMBER STATE RACING COMMISSION THROUGH A COMPACT COMMIS-
 SION.
   C. THE COMPACT COMMISSION SHALL CONSIST OF ONE  DELEGATE,  THE  CHAIR-
 PERSON  OF  THE  STATE RACING COMMISSION OR SUCH PERSON'S DESIGNEE, FROM
 EACH MEMBER STATE. WHEN A DELEGATE IS NOT PRESENT TO PERFORM ANY DUTY IN
 THE COMPACT COMMISSION, A DESIGNATED ALTERNATE MAY SERVE. THE PERSON WHO
 REPRESENTS A MEMBER STATE IN THE  COMPACT  COMMISSION  SHALL  SERVE  AND
 PERFORM SUCH DUTIES WITHOUT COMPENSATION OR REMUNERATION; PROVIDED, THAT
 SUBJECT  TO  THE  AVAILABILITY OF BUDGETED FUNDS, EACH MAY BE REIMBURSED
 FOR ORDINARY AND NECESSARY COSTS AND  EXPENSES.  THE  DESIGNATION  OF  A
 DELEGATE,  INCLUDING  THE  ALTERNATE,  SHALL  BE  EFFECTIVE WHEN WRITTEN
 NOTICE HAS BEEN  PROVIDED  TO  THE  COMPACT  COMMISSION.  THE  DELEGATE,
 INCLUDING  THE  ALTERNATE,  MUST  BE  A  MEMBER OR EMPLOYEE OF THE STATE
 RACING COMMISSION.
   D. THE COMPACT DELEGATE FROM EACH STATE SHALL PARTICIPATE AS AN  AGENT
 OF  THE STATE RACING COMMISSION. EACH DELEGATE SHALL HAVE THE ASSISTANCE

 S. 1509--A                         67                         A. 2009--A
 
 OF THE STATE RACING COMMISSION IN REGARD  TO  ALL  DECISION  MAKING  AND
 ACTIONS OF THE STATE IN AND THROUGH THE COMPACT COMMISSION.
   E.  EACH  MEMBER STATE, BY ITS DELEGATE, SHALL BE ENTITLED TO ONE VOTE
 IN THE COMPACT COMMISSION. A MAJORITY VOTE OF THE TOTAL NUMBER OF DELEG-
 ATES SHALL BE REQUIRED TO PROPOSE A COMPACT RULE, RECEIVE AND DISTRIBUTE
 ANY FUNDS, AND TO ADOPT, AMEND, OR RESCIND THE BY-LAWS. A  COMPACT  RULE
 SHALL  TAKE  EFFECT IN AND FOR EACH MEMBER STATE WHEN ADOPTED BY A SUPER
 MAJORITY VOTE OF EIGHTY PERCENT OF THE TOTAL NUMBER  OF  MEMBER  STATES.
 OTHER COMPACT ACTIONS SHALL REQUIRE A MAJORITY VOTE OF THE DELEGATES WHO
 ARE MEETING.
   F.  MEETINGS  AND  VOTES OF THE COMPACT COMMISSION MAY BE CONDUCTED IN
 PERSON OR BY TELEPHONE OR OTHER ELECTRONIC COMMUNICATION.  MEETINGS  MAY
 BE  CALLED  BY  THE  CHAIRPERSON OF THE COMPACT COMMISSION OR BY ANY TWO
 DELEGATES.  REASONABLE NOTICE OF EACH MEETING SHALL BE PROVIDED  TO  ALL
 DELEGATES SERVING IN THE COMPACT COMMISSION.
   G. NO ACTION MAY BE TAKEN AT A COMPACT COMMISSION MEETING UNLESS THERE
 IS  A QUORUM, WHICH IS EITHER A MAJORITY OF THE DELEGATES IN THE COMPACT
 COMMISSION, OR WHERE APPLICABLE,  ALL  THE  DELEGATES  FROM  ANY  MEMBER
 STATES WHO PROPOSE OR ARE VOTING AFFIRMATIVELY TO ADOPT A COMPACT RULE.
   H.  ONCE  EFFECTIVE,  THE  COMPACT  SHALL CONTINUE IN FORCE AND REMAIN
 BINDING ACCORDING TO ITS TERMS UPON EACH MEMBER STATE; PROVIDED THAT,  A
 MEMBER STATE MAY WITHDRAW FROM THE COMPACT BY REPEALING THE STATUTE THAT
 ENACTED  THE  COMPACT  INTO  LAW. THE RACING COMMISSION OF A WITHDRAWING
 STATE SHALL GIVE WRITTEN NOTICE OF SUCH WITHDRAWAL TO THE COMPACT CHAIR-
 PERSON, WHO SHALL NOTIFY THE MEMBER STATE RACING  COMMISSIONS.  A  WITH-
 DRAWING  STATE  SHALL REMAIN RESPONSIBLE FOR ANY UNFULFILLED OBLIGATIONS
 AND LIABILITIES. THE EFFECTIVE DATE OF WITHDRAWAL FROM THE COMPACT SHALL
 BE THE EFFECTIVE DATE OF THE REPEAL.
   § 1116. OPERATION OF COMPACT COMMISSION.  THE  COMPACT  COMMISSION  IS
 HEREBY  GRANTED,  SO  THAT  IT  MAY  BE AN EFFECTIVE MEANS TO PURSUE AND
 ACHIEVE THE PURPOSES OF EACH MEMBER STATE IN THE COMPACT, THE POWER  AND
 DUTY:
   A.  TO ADOPT, AMEND, AND RESCIND BY-LAWS TO GOVERN ITS CONDUCT, AS MAY
 BE NECESSARY OR APPROPRIATE TO CARRY OUT THE PURPOSES OF THE COMPACT; TO
 PUBLISH THEM IN A CONVENIENT FORM; AND TO FILE A COPY OF THEM  WITH  THE
 STATE RACING COMMISSION OF EACH MEMBER STATE;
   B. TO ELECT ANNUALLY FROM AMONG THE DELEGATES, INCLUDING ALTERNATES, A
 CHAIRPERSON,  VICE-CHAIRPERSON,  AND  TREASURER  WITH SUCH AUTHORITY AND
 DUTIES AS MAY BE SPECIFIED IN THE BY-LAWS;
   C. TO ESTABLISH AND APPOINT COMMITTEES WHICH IT  DEEMS  NECESSARY  FOR
 THE  CARRYING  OUT OF ITS FUNCTIONS, INCLUDING ADVISORY COMMITTEES WHICH
 SHALL BE COMPRISED OF NATIONAL INDUSTRY STAKEHOLDERS  AND  ORGANIZATIONS
 AND  SUCH  OTHER  PERSONS  AS  MAY  BE DESIGNATED IN ACCORDANCE WITH THE
 BY-LAWS, TO OBTAIN THEIR TIMELY AND MEANINGFUL INPUT  INTO  THE  COMPACT
 RULE MAKING PROCESSES;
   D. TO ESTABLISH AN EXECUTIVE COMMITTEE, WITH MEMBERSHIP ESTABLISHED IN
 THE  BY-LAWS,  WHICH  SHALL OVERSEE THE DAY-TO-DAY ACTIVITIES OF COMPACT
 ADMINISTRATION AND MANAGEMENT BY THE EXECUTIVE DIRECTOR AND STAFF;  HIRE
 AND FIRE AS MAY BE NECESSARY AFTER CONSULTATION WITH THE COMPACT COMMIS-
 SION;  ADMINISTER  AND  ENFORCE COMPLIANCE WITH THE PROVISIONS, BY-LAWS,
 AND RULES OF THE COMPACT; AND PERFORM SUCH OTHER DUTIES AS  THE  BY-LAWS
 MAY ESTABLISH;
   E. TO CREATE, APPOINT, AND ABOLISH ALL THOSE OFFICES, EMPLOYMENTS, AND
 POSITIONS,  INCLUDING  AN  EXECUTIVE  DIRECTOR,  USEFUL  TO  FULFILL ITS
 PURPOSES;

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   F. TO DELEGATE DAY-TO-DAY MANAGEMENT AND ADMINISTRATION OF ITS DUTIES,
 AS NEEDED, TO AN EXECUTIVE DIRECTOR AND SUPPORT STAFF; AND
   G.  TO ADOPT AN ANNUAL BUDGET SUFFICIENT TO PROVIDE FOR THE PAYMENT OF
 THE REASONABLE EXPENSES OF ITS ESTABLISHMENT, ORGANIZATION, AND  ONGOING
 ACTIVITIES;  PROVIDED, THAT THE BUDGET SHALL BE FUNDED BY ONLY VOLUNTARY
 CONTRIBUTIONS.
   § 1117. GENERAL POWERS AND DUTIES. TO ALLOW EACH MEMBER STATE, AS  AND
 WHEN IT CHOOSES, TO ACHIEVE THE PURPOSE OF THE COMPACT THROUGH JOINT AND
 COOPERATIVE  ACTION,  THE MEMBER STATES ARE HEREBY GRANTED THE POWER AND
 DUTY, BY AND THROUGH THE COMPACT COMMISSION:
   A. TO ACT JOINTLY AND COOPERATIVELY TO CREATE  A  MORE  EQUITABLE  AND
 UNIFORM  PARI-MUTUEL RACING AND WAGERING INTERSTATE REGULATORY FRAMEWORK
 BY THE ADOPTION OF STANDARDIZED RULES FOR THE PERMITTED  AND  PROHIBITED
 USE  OF  DRUGS  AND MEDICATIONS FOR THE HEALTH, AND WELFARE OF THE HORSE
 AND THE INTEGRITY OF RACING, INCLUDING RULES GOVERNING THE USE OF  DRUGS
 AND MEDICATIONS AND DRUG TESTING;
   B.  TO  COLLABORATE  WITH  NATIONAL INDUSTRY STAKEHOLDERS AND INDUSTRY
 ORGANIZATIONS, INCLUDING THE ASSOCIATION OF RACING COMMISSIONERS  INTER-
 NATIONAL,  INC. AND THE RACING MEDICATION AND TESTING CONSORTIUM, IN THE
 DESIGN AND IMPLEMENTATION OF COMPACT RULES IN A MANNER THAT  SERVES  THE
 BEST INTERESTS OF RACING; AND
   C.  TO PROPOSE AND ADOPT BREED SPECIFIC COMPACT EQUINE DRUGS AND MEDI-
 CATIONS RULES FOR THE HEALTH, AND WELFARE OF THE HORSE, INCLUDING  RULES
 GOVERNING  THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS AND
 DRUG TESTING, WHICH SHALL HAVE THE FORCE AND EFFECT OF  STATE  RULES  OR
 REGULATIONS  IN  THE  MEMBER  STATES,  TO  GOVERN LIVE PARI-MUTUEL HORSE
 RACING.
   § 1118. OTHER POWERS AND DUTIES. THE COMPACT COMMISSION  MAY  EXERCISE
 SUCH  INCIDENTAL POWERS AND DUTIES AS MAY BE NECESSARY AND PROPER FOR IT
 TO FUNCTION IN A USEFUL MANNER, INCLUDING BUT NOT LIMITED TO  THE  POWER
 AND DUTY:
   A.  TO  ENTER INTO CONTRACTS AND AGREEMENTS WITH GOVERNMENTAL AGENCIES
 AND OTHER PERSONS, INCLUDING OFFICERS AND EMPLOYEES OF A  MEMBER  STATE,
 TO  PROVIDE PERSONAL SERVICES FOR ITS ACTIVITIES AND SUCH OTHER SERVICES
 AS MAY BE NECESSARY;
   B. TO BORROW, ACCEPT, AND CONTRACT FOR THE SERVICES OF PERSONNEL  FROM
 ANY  STATE,  FEDERAL,  OR  OTHER  GOVERNMENTAL AGENCY, OR FROM ANY OTHER
 PERSON OR ENTITY;
   C. TO RECEIVE INFORMATION FROM AND  TO  PROVIDE  INFORMATION  TO  EACH
 MEMBER  STATE  RACING  COMMISSION,  INCLUDING ITS OFFICERS AND STAFF, ON
 SUCH TERMS AND CONDITIONS AS MAY BE ESTABLISHED IN THE BY-LAWS;
   D. TO ACQUIRE, HOLD, AND DISPOSE OF ANY REAL OR PERSONAL  PROPERTY  BY
 GIFT,  GRANT, PURCHASE, LEASE, LICENSE, AND SIMILAR MEANS AND TO RECEIVE
 ADDITIONAL FUNDS THROUGH GIFTS, GRANTS, AND APPROPRIATIONS;
   E. WHEN AUTHORIZED BY A COMPACT RULE, TO CONDUCT HEARINGS  AND  RENDER
 REPORTS AND ADVISORY DECISIONS AND ORDERS; AND
   F.  TO  ESTABLISH  IN THE BY-LAWS THE REQUIREMENTS THAT SHALL DESCRIBE
 AND GOVERN ITS DUTIES TO CONDUCT OPEN OR PUBLIC MEETINGS AND TO  PROVIDE
 PUBLIC ACCESS TO COMPACT RECORDS AND INFORMATION.
   §  1119.  COMPACT  RULE  MAKING.  IN  THE  EXERCISE OF ITS RULE MAKING
 AUTHORITY, THE COMPACT COMMISSION SHALL:
   A. ENGAGE IN FORMAL RULE MAKING PURSUANT TO A  PROCESS  THAT  SUBSTAN-
 TIALLY  CONFORMS TO THE MODEL STATE ADMINISTRATIVE PROCEDURE ACT OF 1981
 AS AMENDED, AS MAY BE APPROPRIATE TO THE ACTIONS AND OPERATIONS  OF  THE
 COMPACT COMMISSION;

 S. 1509--A                         69                         A. 2009--A
 
   B.  GATHER INFORMATION AND ENGAGE IN DISCUSSIONS WITH ADVISORY COMMIT-
 TEES, NATIONAL INDUSTRY STAKEHOLDERS, AND OTHERS, INCLUDING AN  OPPORTU-
 NITY  FOR  INDUSTRY ORGANIZATIONS TO SUBMIT INPUT TO MEMBER STATE RACING
 COMMISSIONS ON THE STATE LEVEL, TO FOSTER, PROMOTE AND CONDUCT A  COLLA-
 BORATIVE  APPROACH  IN  THE DESIGN AND ADVANCEMENT OF COMPACT RULES IN A
 MANNER THAT SERVES THE BEST INTERESTS OF RACING AND  AS  ESTABLISHED  IN
 THE BY-LAWS;
   C.  DIRECT  THE  PUBLICATION  IN EACH MEMBER STATE OF EACH EQUINE DRUG
 RULE PROPOSED BY THE COMPACT COMMISSION,  CONDUCT  A  REVIEW  OF  PUBLIC
 COMMENTS RECEIVED BY EACH MEMBER STATE RACING COMMISSION AND THE COMPACT
 COMMISSION  IN RESPONSE TO THE PUBLICATION OF ITS RULE MAKING PROPOSALS,
 CONSULT WITH NATIONAL INDUSTRY STAKEHOLDERS  AND  PARTICIPANTS  IN  LIVE
 RACING WITH REGARD TO SUCH PROCESS AND ANY REVISIONS TO THE COMPACT RULE
 PROPOSAL,  AND  MEET UPON THE COMPLETION OF THE PUBLIC COMMENT PERIOD TO
 CONDUCT A VOTE ON THE ADOPTION OF THE PROPOSED COMPACT RULE AS  A  STATE
 RULE IN THE MEMBER STATES; AND
   D.  HAVE  A  STANDING  COMMITTEE  THAT  REVIEWS AT LEAST QUARTERLY THE
 PARTICIPATION IN AND VALUE OF COMPACT RULES AND, WHEN IT DETERMINES THAT
 A REVISION IS APPROPRIATE OR WHEN REQUESTED  TO  BY  ANY  MEMBER  STATE,
 SUBMITS A REVISING PROPOSED COMPACT RULE. TO THE EXTENT A REVISION WOULD
 ONLY  ADD  OR  REMOVE A MEMBER STATE OR STATES FROM WHERE A COMPACT RULE
 HAS BEEN ADOPTED, THE VOTE REQUIRED BY THIS SECTION SHALL BE REQUIRED OF
 ONLY SUCH STATE OR STATES.  THE STANDING COMMITTEE SHALL GATHER INFORMA-
 TION AND ENGAGE IN DISCUSSIONS WITH NATIONAL INDUSTRY STAKEHOLDERS,  WHO
 MAY  ALSO  DIRECTLY RECOMMEND A COMPACT RULE PROPOSAL OR REVISION TO THE
 COMPACT COMMITTEE.
   § 1120. STATUS AND RELATIONSHIP TO MEMBER  STATES.    A.  THE  COMPACT
 COMMISSION,  AS  AN INTERSTATE GOVERNMENTAL ENTITY, SHALL BE EXEMPT FROM
 ALL TAXATION IN AND BY THE MEMBER STATES.
   B. THE COMPACT COMMISSION SHALL NOT PLEDGE THE CREDIT  OF  ANY  MEMBER
 STATE EXCEPT BY AND WITH THE APPROPRIATE LEGAL AUTHORITY OF THAT STATE.
   C.  EACH MEMBER STATE SHALL REIMBURSE OR OTHERWISE PAY THE EXPENSES OF
 ITS DELEGATE, INCLUDING ANY ALTERNATE, IN THE COMPACT COMMISSION.
   D. NO MEMBER STATE, EXCEPT AS PROVIDED IN SECTION ELEVEN HUNDRED TWEN-
 TY-THREE OF THIS ARTICLE, SHALL BE HELD LIABLE FOR THE  DEBTS  OR  OTHER
 FINANCIAL OBLIGATIONS INCURRED BY THE COMPACT COMMISSION.
   E.  NO  MEMBER  STATE SHALL HAVE, WHILE IT PARTICIPATES IN THE COMPACT
 COMMISSION, ANY CLAIM TO OR OWNERSHIP OF ANY PROPERTY HELD BY OR  VESTED
 IN THE COMPACT COMMISSION OR TO ANY COMPACT COMMISSION FUNDS HELD PURSU-
 ANT  TO  THE  COMPACT  EXCEPT  FOR STATE LICENSE OR OTHER FEES OR MONEYS
 COLLECTED BY THE COMPACT COMMISSION AS ITS AGENT.
   F. THE COMPACT DISSOLVES UPON THE DATE OF THE WITHDRAWAL OF THE MEMBER
 STATE THAT REDUCES MEMBERSHIP IN THE COMPACT TO ONE STATE. UPON  DISSOL-
 UTION,  THE  COMPACT  BECOMES  NULL  AND VOID AND SHALL BE OF NO FURTHER
 FORCE OR EFFECT, ALTHOUGH EQUINE DRUG RULES ADOPTED THROUGH THE  COMPACT
 SHALL REMAIN STATE RULES IN EACH MEMBER STATE THAT HAD ADOPTED THEM, AND
 THE  BUSINESS  AND  AFFAIRS  OF  THE  COMPACT SHALL BE CONCLUDED AND ANY
 SURPLUS FUNDS SHALL BE  DISTRIBUTED  TO  THE  FORMER  MEMBER  STATES  IN
 ACCORDANCE WITH THE BY-LAWS.
   §  1121. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES.  A. EACH MEMBER
 STATE IN THE COMPACT SHALL ACCEPT THE DECISIONS, DULY APPLICABLE TO  IT,
 OF THE COMPACT COMMISSION IN REGARD TO COMPACT RULES AND RULE MAKING.
   B.  THE COMPACT SHALL NOT BE CONSTRUED TO DIMINISH OR LIMIT THE POWERS
 AND RESPONSIBILITIES OF THE MEMBER STATE RACING  COMMISSION  OR  SIMILAR
 REGULATORY  BODY,  OR  TO INVALIDATE ANY ACTION IT HAS PREVIOUSLY TAKEN,
 EXCEPT TO THE EXTENT IT HAS, BY  ITS  COMPACT  DELEGATE,  EXPRESSED  ITS

 S. 1509--A                         70                         A. 2009--A
 
 CONSENT  TO  A  SPECIFIC RULE OR OTHER ACTION OF THE COMPACT COMMISSION.
 THE COMPACT DELEGATE FROM EACH STATE SHALL SERVE AS  THE  AGENT  OF  THE
 STATE  RACING  COMMISSION  AND  SHALL  POSSESS SUBSTANTIAL KNOWLEDGE AND
 EXPERIENCE AS A REGULATOR OR PARTICIPANT IN THE HORSE RACING INDUSTRY.
   §  1122. ENFORCEMENT OF COMPACT.  A. THE COMPACT COMMISSION SHALL HAVE
 STANDING TO INTERVENE IN ANY LEGAL ACTION THAT PERTAINS TO  THE  SUBJECT
 MATTER OF THE COMPACT AND MIGHT AFFECT ITS POWERS, DUTIES, OR ACTIONS.
   B.  THE  COURTS  AND  EXECUTIVE IN EACH MEMBER STATE SHALL ENFORCE THE
 COMPACT AND TAKE ALL ACTIONS NECESSARY AND APPROPRIATE TO EFFECTUATE ITS
 PURPOSES AND INTENT. COMPACT PROVISIONS, BY-LAWS,  AND  RULES  SHALL  BE
 RECEIVED  BY  ALL JUDGES, DEPARTMENTS, AGENCIES, BODIES, AND OFFICERS OF
 EACH MEMBER STATE AND ITS POLITICAL SUBDIVISIONS AS EVIDENCE OF THEM.
   § 1123. LEGAL ACTIONS AGAINST COMPACT.  A. ANY PERSON MAY  COMMENCE  A
 CLAIM,  ACTION,  OR  PROCEEDING  AGAINST THE COMPACT COMMISSION IN STATE
 COURT FOR DAMAGES. THE COMPACT COMMISSION SHALL HAVE THE BENEFIT OF  THE
 SAME  LIMITS  OF LIABILITY, DEFENSES, RIGHTS TO INDEMNITY AND DEFENSE BY
 THE STATE, AND OTHER LEGAL RIGHTS AND DEFENSES FOR  NON-COMPACT  MATTERS
 OF  THE  STATE  RACING  COMMISSION  IN  THE  STATE. ALL LEGAL RIGHTS AND
 DEFENSES THAT ARISE FROM THE COMPACT SHALL  ALSO  BE  AVAILABLE  TO  THE
 COMPACT COMMISSION.
   B.  A  COMPACT  DELEGATE,  ALTERNATE, OR OTHER MEMBER OR EMPLOYEE OF A
 STATE RACING COMMISSION WHO UNDERTAKES COMPACT ACTIVITIES OR DUTIES DOES
 SO IN THE COURSE OF BUSINESS OF THEIR STATE RACING COMMISSION, AND SHALL
 HAVE THE BENEFIT OF THE SAME LIMITS OF LIABILITY,  DEFENSES,  RIGHTS  TO
 INDEMNITY  AND DEFENSE BY THE STATE, AND OTHER LEGAL RIGHTS AND DEFENSES
 FOR NON-COMPACT MATTERS OF STATE EMPLOYEES IN THEIR STATE. THE EXECUTIVE
 DIRECTOR AND OTHER EMPLOYEES OF THE COMPACT COMMISSION  SHALL  HAVE  THE
 BENEFIT  OF  THESE  SAME LEGAL RIGHTS AND DEFENSES OF STATE EMPLOYEES IN
 THE MEMBER STATE IN WHICH THEY ARE PRIMARILY EMPLOYED. ALL LEGAL  RIGHTS
 AND  DEFENSES  THAT  ARISE  FROM  THE COMPACT SHALL ALSO BE AVAILABLE TO
 THEM.
   C. EACH MEMBER STATE SHALL BE  LIABLE  FOR  AND  PAY  JUDGMENTS  FILED
 AGAINST  THE  COMPACT  COMMISSION  TO  THE EXTENT RELATED TO ITS PARTIC-
 IPATION IN THE COMPACT. WHERE LIABILITY ARISES  FROM  ACTION  UNDERTAKEN
 JOINTLY WITH OTHER MEMBER STATES, THE LIABILITY SHALL BE DIVIDED EQUALLY
 AMONG THE STATES FOR WHOM THE APPLICABLE ACTION OR OMISSION OF THE EXEC-
 UTIVE  DIRECTOR  OR OTHER EMPLOYEES OF THE COMPACT COMMISSION WAS UNDER-
 TAKEN; AND NO MEMBER STATE SHALL CONTRIBUTE TO OR PAY, OR BE JOINTLY  OR
 SEVERALLY  OR  OTHERWISE LIABLE FOR, ANY PART OF ANY JUDGMENT BEYOND ITS
 SHARE AS DETERMINED IN ACCORDANCE WITH THIS SECTION.
   § 1124. RESTRICTIONS ON AUTHORITY.  A. NEW YORK SUBSTANTIVE STATE LAWS
 APPLICABLE TO PARI-MUTUEL HORSE RACING AND WAGERING SHALL REMAIN IN FULL
 FORCE AND EFFECT.
   B. COMPACT RULES SHALL NOT PRECLUDE SUBSEQUENT RULEMAKING IN NEW  YORK
 STATE  ON  THE  SAME  OR  RELATED MATTER. THE MOST RECENTLY ADOPTED RULE
 SHALL THEREBY BECOME THE GOVERNING LAW.
   C. NEW YORK STATE SHALL NOT PARTICIPATE IN OR  APPLY  THIS  INTERSTATE
 COMPACT TO ANY ASPECT OF STANDARDBRED RACING.
   §  1125. CONSTRUCTION, SAVINGS AND SEVERABILITY.  A. THE COMPACT SHALL
 BE LIBERALLY CONSTRUED SO AS TO EFFECTUATE ITS PURPOSES. THE  PROVISIONS
 OF  THE  COMPACT SHALL BE SEVERABLE AND IF ANY PHRASE, CLAUSE, SENTENCE,
 OR PROVISION OF THE COMPACT IS DECLARED TO BE CONTRARY TO THE  CONSTITU-
 TION  OF  THE UNITED STATES OR OF ANY MEMBER STATE, OR THE APPLICABILITY
 OF THE COMPACT TO ANY GOVERNMENT, AGENCY,  PERSON,  OR  CIRCUMSTANCE  IS
 HELD  INVALID,  THE  VALIDITY  OF  THE  REMAINDER OF THE COMPACT AND ITS
 APPLICABILITY TO ANY GOVERNMENT, AGENCY, PERSON, OR  CIRCUMSTANCE  SHALL

 S. 1509--A                         71                         A. 2009--A
 
 NOT  BE  AFFECTED.   IF ALL OR SOME PORTION OF THE COMPACT IS HELD TO BE
 CONTRARY TO THE CONSTITUTION OF ANY  MEMBER  STATE,  THE  COMPACT  SHALL
 REMAIN IN FULL FORCE AND EFFECT AS TO THE REMAINING MEMBER STATES AND IN
 FULL  FORCE  AND  EFFECT  AS  TO  THE STATE AFFECTED AS TO ALL SEVERABLE
 MATTERS.
   B. IN THE EVENT OF ANY ALLEGATION,  FINDING,  OR  RULING  AGAINST  THE
 COMPACT  OR  ITS PROCEDURES OR ACTIONS, PROVIDED THAT A MEMBER STATE HAS
 FOLLOWED THE COMPACT'S STATED PROCEDURES, ANY RULE IT PURPORTED TO ADOPT
 USING THE PROCEDURES OF THIS STATUTE SHALL CONSTITUTE A DULY ADOPTED AND
 VALID STATE RULE.
   § 2. This act shall take effect immediately.
 
                                  PART JJ
 
   Section 1. Section 2 of part EE of chapter 59 of  the  laws  of  2018,
 amending  the racing, pari-mutuel wagering and breeding law, relating to
 adjusting the franchise payment establishing an  advisory  committee  to
 review  the structure, operations and funding of equine drug testing and
 research, is amended to read as follows:
   § 2. An advisory committee shall be established within  the  New  York
 gaming commission comprised of individuals with demonstrated interest in
 the  performance  of thoroughbred and standardbred race horses to review
 the present structure, operations and funding of equine drug testing and
 research conducted pursuant to article nine of the  racing,  pari-mutuel
 wagering  and  breeding  law.  Members  of  the  committee, who shall be
 appointed by the governor, shall include but not be limited to a  desig-
 nee  at  the  recommendation of each licensed or franchised thoroughbred
 and standardbred racetrack, a designee at  the  recommendation  of  each
 operating  regional  off-track  betting  corporation,  a designee at the
 recommendation of each recognized horsemen's organization at licensed or
 franchised thoroughbred and standardbred racetracks, a designee  at  the
 recommendation of both Morrisville State College and the Cornell Univer-
 sity School of Veterinary Medicine, and two designees each at the recom-
 mendation  of the speaker of the assembly and temporary president of the
 senate. The governor shall designate the chair from  among  the  members
 who  shall serve as such at the pleasure of the governor. State agencies
 shall cooperate with and assist the committee in the fulfillment of  its
 duties  and  may  render  informational,  non-personnel  services to the
 committee within their respective functions as the committee may reason-
 ably request. Recommendations shall be delivered to the temporary presi-
 dent of the senate, speaker of the assembly and governor by December  1,
 [2018]  2019 regarding the future of such research, testing and funding.
 Members of the board shall not be considered policymakers.
   § 2. Subdivision 1 of section 902 of the racing, pari-mutuel  wagering
 and  breeding  law,  as  amended  by  chapter 15 of the laws of 2010, is
 amended to read as follows:
   1. In order to assure the public's confidence and  continue  the  high
 degree  of integrity in racing at the pari-mutuel betting tracks, equine
 drug testing at race meetings shall be conducted  by  a  [state  college
 within  this  state  with  an  approved equine science program] SUITABLE
 LABORATORY, AS THE GAMING COMMISSION MAY DETERMINE  IN  ITS  DISCRETION.
 The [state racing and wagering board] GAMING COMMISSION shall promulgate
 any  rules and regulations necessary to implement the provisions of this
 section, including administrative penalties  of  loss  of  purse  money,
 fines,  or  denial,  suspension[,] or revocation of a license for racing
 drugged horses.

 S. 1509--A                         72                         A. 2009--A
 
   § 3. This act shall take effect immediately.
 
                                  PART KK
 
   Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
 amended by adding a new section 104-a to read as follows:
   § 104-A. REGISTRATION TO ENGAGE IN GAMING ACTIVITY.    NOTWITHSTANDING
 ANY  PROVISION  OF  LAW  TO THE CONTRARY, THE COMMISSION MAY REQUIRE ANY
 PERSON, CORPORATION OR ASSOCIATION INTENDING TO  ENGAGE  IN  ANY  GAMING
 ACTIVITY REGULATED BY THE COMMISSION TO SUBMIT A PRIMARY REGISTRATION TO
 THE COMMISSION.
   1.  FOR  THE  PURPOSES  OF  THIS SECTION, WHEN A PERSON IS REQUIRED TO
 SUBMIT A REGISTRATION, ANY  AND  ALL  LICENSES,  REGISTRATIONS,  CERTIF-
 ICATES,  PERMITS  OR  APPROVALS  ISSUED TO SUCH PERSON AS REQUIRED UNDER
 THIS CHAPTER OR UNDER ARTICLE  THIRTY-FOUR  OF  THE  TAX  LAW  SHALL  BE
 CONSIDERED  SUB-REGISTRATIONS  OR  SUB-LICENSES  TO  THE  AFOREMENTIONED
 REGISTRATION. NO INDIVIDUAL SHALL ENGAGE IN ANY GAMING ACTIVITY  WITHOUT
 A VALID SUB-REGISTRATION OR SUB-LICENSE AUTHORIZING SUCH ACTIVITY.
   2. THE PRIMARY REGISTRATION TO ENGAGE IN GAMING ACTIVITIES SHALL SOLE-
 LY BE AN INFORMATIONAL RETURN CONTAINING SUCH INFORMATION THE COMMISSION
 DEEMS  APPLICABLE  TO ALL SUB-REGISTRATIONS OR SUB-LICENSES. THE COMMIS-
 SION SHALL REQUIRE SEPARATE APPLICATIONS FOR  ALL  SUB-REGISTRATIONS  OR
 SUB-LICENSES CONTAINING ALL SUPPLEMENTAL INFORMATION THAT THE COMMISSION
 DEEMS NECESSARY.
   ALL  COMMISSION DETERMINATIONS SHALL BE MADE ON AN APPLICANT'S SUB-RE-
 GISTRATION OR SUB-LICENSE AND  NOT  ON  THE  PRIMARY  REGISTRATION.  ANY
 INFORMATION  OBTAINED  FOR  OR CONTAINED IN THE PRIMARY REGISTRATION AND
 ALL ASSOCIATED SUB-REGISTRATIONS OR SUB-LICENSES  MAY  BE  USED  IN  ANY
 SUBSEQUENT LICENSING AND REGISTRATION DETERMINATIONS.
   3.  PURSUANT  TO  THE  COMMISSION'S  AUTHORITY GRANTED BY SUBDIVISIONS
 THIRTEEN AND FOURTEEN OF SECTION ONE HUNDRED FOUR OF THIS  ARTICLE,  THE
 COMMISSION MAY REQUIRE A BACKGROUND INVESTIGATION AND A CRIMINAL HISTORY
 RECORD SEARCH FOR ANY PRIMARY OR SUB-REGISTRATION OR SUB-LICENSE SOUGHT.
 THE  COMMISSION  SHALL  HAVE  THE  RIGHT TO REQUEST NEW INFORMATION UPON
 SUBMISSION OF ANY NEW SUB-REGISTRATION OR SUB-LICENSE APPLICATION.
   FOR THE PURPOSES OF THIS SECTION, UPON AN INITIAL SUB-REGISTRATION  OR
 SUB-LICENSE  APPLICATION  AND  ANY SUBSEQUENT SUB-APPLICATIONS AS MAY BE
 REQUIRED BY THE COMMISSION, EACH APPLICANT SHALL SUBMIT TO  THE  COMMIS-
 SION THE APPLICANT'S NAME, ADDRESS, FINGERPRINTS AND WRITTEN CONSENT FOR
 CRIMINAL  HISTORY INFORMATION AS DEFINED IN PARAGRAPH (C) OF SUBDIVISION
 ONE OF SECTION EIGHT HUNDRED FORTY-FIVE-B OF THE EXECUTIVE  LAW,  TO  BE
 PERFORMED.  THE  COMMISSION IS HEREBY AUTHORIZED TO EXCHANGE FINGERPRINT
 DATA WITH AND RECEIVE CRIMINAL HISTORY RECORD INFORMATION FROM THE STATE
 DIVISION OF CRIMINAL JUSTICE SERVICES AND THE FEDERAL BUREAU OF INVESTI-
 GATION CONSISTENT WITH APPLICABLE STATE  AND  FEDERAL  LAWS,  RULES  AND
 REGULATIONS.  THE  APPLICANT SHALL PAY THE FEE FOR SUCH CRIMINAL HISTORY
 INFORMATION AS ESTABLISHED PURSUANT TO ARTICLE THIRTY-FIVE OF THE EXECU-
 TIVE LAW. THE STATE DIVISION OF CRIMINAL JUSTICE SERVICES SHALL PROMPTLY
 NOTIFY THE COMMISSION IN THE EVENT A CURRENT  OR  PROSPECTIVE  LICENSEE,
 WHO  WAS  THE  SUBJECT  OF SUCH CRIMINAL HISTORY INFORMATION PURSUANT TO
 THIS SECTION, IS ARRESTED FOR A CRIME OR OFFENSE IN THIS STATE AFTER THE
 DATE THE CHECK WAS PERFORMED.
   4. PRIMARY REGISTRATIONS SHALL EXPIRE FIVE  YEARS  FROM  THE  DATE  OF
 SUBMISSION, PROVIDED, HOWEVER, ANY SUB-REGISTRATION OR SUB-LICENSE SHALL
 CONTINUE  THROUGH  ITS  EXPIRATION.  NOTWITHSTANDING THIS PROVISION, THE
 COMMISSION MAY SUSPEND ANY SUB-REGISTRATION OR SUB-LICENSE THAT  HAS  AN

 S. 1509--A                         73                         A. 2009--A
 
 EXPIRED PRIMARY REGISTRATION UNTIL SUCH PRIMARY REGISTRATION IS RENEWED.
 THE  COMMISSION SHALL ESTABLISH A SCHEDULE TO REGISTER ANY INDIVIDUAL OR
 ENTITY WHO POSSESSED A SUB-REGISTRATION  OR  SUB-LICENSE  PRIOR  TO  THE
 IMPLEMENTATION OF THIS SECTION.
   5.  THE COMMISSION SHALL PROMULGATE RULES AND REGULATIONS TO IMPLEMENT
 THE PROVISIONS OF THIS SECTION AND ENSURE THAT ALL LICENSING AND  REGIS-
 TRATION  REQUIREMENTS OF THIS CHAPTER AND ARTICLE THIRTY-FOUR OF THE TAX
 LAW ARE ADEQUATELY ADDRESSED IN THE IMPLEMENTATION.
   § 2. Section 1301 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 31-a to read as follows:
   31-A.  "NON-GAMING  EMPLOYEE".  ANY  NATURAL  PERSON,  NOT   OTHERWISE
 INCLUDED  IN  THE  DEFINITION OF CASINO KEY EMPLOYEE OR GAMING EMPLOYEE,
 WHO IS EMPLOYED BY A GAMING FACILITY LICENSEE, OR A HOLDING OR  INTERME-
 DIARY  COMPANY  OF A GAMING FACILITY LICENSEE, AND PERFORMS SERVICES AND
 DUTIES UPON THE PREMISES OF A  GAMING  FACILITY,  WHOSE  DUTIES  DO  NOT
 RELATE  TO  THE OPERATION OF GAMING ACTIVITIES, AND WHO IS NOT REGULARLY
 REQUIRED TO WORK IN RESTRICTED AREAS SUCH THAT REGISTRATION  OF  A  NON-
 GAMING EMPLOYEE IS APPROPRIATE.
   §  3.  Paragraph  (c)  of subdivision 1 of section 1318 of the racing,
 pari-mutuel wagering and breeding law, as added by chapter  174  of  the
 laws of 2013, is amended to read as follows:
   (c)  the  conviction of the applicant, or of any person required to be
 qualified under this article as a condition of a license, of any offense
 in any jurisdiction which is or would  be  a  [felony  or  other]  crime
 involving  public  integrity,  embezzlement, theft, fraud, [or] perjury,
 REPRESENTS A SIGNIFICANT THREAT TO PUBLIC  SAFETY,  OR  WOULD  OTHERWISE
 POSE A THREAT TO THE EFFECTIVE REGULATION OF CASINO GAMING;
   § 4. Subdivision 4 of section 1322 of the racing, pari-mutuel wagering
 and  breeding  law,  as  added  by  chapter  174 of the laws of 2013, is
 amended to read as follows:
   4. All applicants, licensees, registrants, and any  other  person  who
 shall  be  qualified  pursuant to this article shall have the continuing
 duty to provide any assistance or information required  by  the  commis-
 sion,  and  to  cooperate  in  any  inquiry,  investigation  or  hearing
 conducted by the commission. If, upon issuance of a  formal  request  to
 answer  or  produce  information,  evidence or testimony, any applicant,
 licensee, registrant, or any other person who shall be qualified  pursu-
 ant  to this article refuses to comply, the application, license, regis-
 tration or qualification of such person  may  be  SUSPENDED,  denied  or
 revoked.
   § 5. Subdivision 3 of section 1323 of the racing, pari-mutuel wagering
 and  breeding  law,  as  added  by  chapter  174 of the laws of 2013, is
 amended to read as follows:
   3. The commission shall deny a casino  key  employee  license  to  any
 applicant  who is disqualified on the basis of the criteria contained in
 section [one thousand three] THIRTEEN hundred eighteen of  this  [title]
 ARTICLE,  subject  to  notice and hearing.  PROVIDED THAT, NO CASINO KEY
 EMPLOYEE LICENSE SHALL BE DENIED OR REVOKED ON THE BASIS OF A CONVICTION
 OF ANY OF THE OFFENSES ENUMERATED IN THIS  ARTICLE  AS  DISQUALIFICATION
 CRITERIA OR THE COMMISSION OF ANY ACT OR ACTS WHICH WOULD CONSTITUTE ANY
 OFFENSE  UNDER  SECTION  THIRTEEN  HUNDRED  EIGHTEEN  OF  THIS  ARTICLE,
 PROVIDED THAT THE APPLICANT HAS AFFIRMATIVELY  DEMONSTRATED  THE  APPLI-
 CANT'S   REHABILITATION,  PURSUANT  TO  ARTICLE  TWENTY-THREE-A  OF  THE
 CORRECTION LAW.

 S. 1509--A                         74                         A. 2009--A
 
   § 6. Subdivision 4 of section 1323 of the racing, pari-mutuel wagering
 and breeding law, as added by chapter  174  of  the  laws  of  2013,  is
 amended to read as follows:
   4.  Upon  [receipt of such criminal history information] DETERMINATION
 THAT AN APPLICANT IS DISQUALIFIED ON THE BASIS OF THE APPLICANT'S CRIMI-
 NAL HISTORY, the commission shall provide such applicant with a copy  of
 such criminal history information, together with a copy of article twen-
 ty-three-A  of  the  correction law, and inform such applicant of his or
 her right to seek correction of any incorrect information  contained  in
 such criminal history information pursuant to regulations and procedures
 established  by  the  division  of  criminal justice services. Except as
 otherwise provided by law, such criminal history  information  shall  be
 confidential  and  any  person who willfully permits the release of such
 confidential criminal history information to persons  not  permitted  to
 receive such information shall be guilty of a misdemeanor.
   §  7.  Section  1324  of the racing, pari-mutuel wagering and breeding
 law, as added by chapter 174 of the laws of 2013, is amended to read  as
 follows:
   § 1324. Gaming AND NON-GAMING employee registration.  1. No person may
 commence  employment  as  a  gaming  OR  NON-GAMING employee unless such
 person has a valid registration [on file with the] ISSUED BY THE commis-
 sion, which registration shall be prepared and filed in accordance  with
 the regulations promulgated hereunder.
   2.  A  gaming  OR  NON-GAMING  employee  registrant shall produce such
 information as the commission by regulation may require. [Subsequent  to
 the  registration  of a gaming employee, the executive director may] THE
 COMMISSION MAY DENY, revoke, suspend, limit, or otherwise  restrict  the
 registration  upon  a finding that the registrant is disqualified on the
 basis of the criteria contained in section [one thousand three] THIRTEEN
 hundred eighteen of this [title] ARTICLE.  If  a  gaming  OR  NON-GAMING
 employee  registrant  has  not  been  employed  in any position within a
 gaming facility for a period of three years, the  registration  of  that
 gaming OR NON-GAMING employee shall lapse.
   3.  No  gaming  OR NON-GAMING employee registration shall be denied or
 revoked on the basis  of  a  [misdemeanor]  conviction  of  any  of  the
 offenses  enumerated in this article as disqualification criteria or the
 commission of any act or acts which would constitute any  offense  under
 section  [one  thousand three] THIRTEEN hundred eighteen of this [title]
 ARTICLE, provided that the registrant has affirmatively demonstrated the
 registrant's rehabilitation, pursuant to article twenty-three-A  of  the
 correction law.
   4.  For the purposes of this section, each GAMING OR NON-GAMING regis-
 trant shall submit to the commission  the  registrant's  name,  address,
 fingerprints  and  written consent for a criminal history information to
 be performed. The commission is hereby authorized  to  exchange  finger-
 print  data  with and receive criminal history information as defined in
 paragraph (c) of subdivision one of section eight  hundred  forty-five-b
 of  the  executive  law  from  the  state  division  of criminal justice
 services and the federal bureau of investigation consistent with  appli-
 cable  state  and  federal  laws,  rules and regulations. The registrant
 shall pay the fee for such criminal history information  as  established
 pursuant to article thirty-five of the executive law. The state division
 of criminal justice services shall promptly notify the commission in the
 event  a  current  or  prospective  licensee  OR REGISTRANT, who was the
 subject of a criminal history information pursuant to this  section,  is

 S. 1509--A                         75                         A. 2009--A
 
 arrested  for  a crime or offense in this state after the date the check
 was performed.
   5.  Upon  [receipt of such criminal history information] DETERMINATION
 THAT AN APPLICANT IS DISQUALIFIED ON THE BASIS OF THE APPLICANT'S CRIMI-
 NAL HISTORY, the [Commission] COMMISSION shall  provide  such  applicant
 with  a  copy of such criminal history information, together with a copy
 of article twenty-three-A of the correction law, and inform such  appli-
 cant of his or her right to seek correction of any incorrect information
 contained  in  such criminal history information pursuant to regulations
 and procedures established by the division of criminal justice services.
 Except as otherwise provided by law, such criminal  history  information
 shall  be  confidential and any person who willfully permits the release
 of such confidential criminal history information to persons not permit-
 ted to receive such information shall be guilty of a misdemeanor.
   6. EACH APPLICANT FOR A GAMING REGISTRATION SHALL PRODUCE SUCH  INFOR-
 MATION,  DOCUMENTATION AND ASSURANCES AS MAY BE REQUIRED TO ESTABLISH BY
 CLEAR AND CONVINCING EVIDENCE THE APPLICANT'S  GOOD  CHARACTER,  HONESTY
 AND INTEGRITY. SUCH INFORMATION SHALL INCLUDE DATA PERTAINING TO CHARAC-
 TER,  REPUTATION,  CRIMINAL  HISTORY  INFORMATION AND PRIOR ASSOCIATIONS
 WITH GAMING OPERATIONS IN ANY CAPACITY, POSITION,  OR  EMPLOYMENT  IN  A
 JURISDICTION THAT PERMITS SUCH ACTIVITY.
   §  8.  Section  1325  of the racing, pari-mutuel wagering and breeding
 law, as added by chapter 174 of the laws of 2013, is amended to read  as
 follows:
   §  1325.  Approval, denial and renewal of employee licenses and regis-
 trations. 1. Upon the filing of an application for a casino key employee
 license or gaming employee registration required  by  this  article  and
 after  submission of such supplemental information as the commission may
 require, the commission shall conduct or  cause  to  be  conducted  such
 investigation  into  the qualification of the applicant, and the commis-
 sion shall conduct such hearings concerning  the  qualification  of  the
 applicant,  in  accordance  with its regulations, as may be necessary to
 determine qualification for  such  license  OR  REGISTRATION.  UPON  THE
 FILING  OF  AN  APPLICATION  FOR A NON-GAMING EMPLOYEE REGISTRATION, AND
 AFTER SUBMISSION OF SUCH SUPPLEMENTAL INFORMATION AS THE COMMISSION  MAY
 REQUIRE,  THE  COMMISSION MAY, IN ITS DISCRETION, CONDUCT OR CAUSE TO BE
 CONDUCTED AN INVESTIGATION INTO THE QUALIFICATION OF SUCH APPLICANT.
   2. After such investigation, the commission may either deny the appli-
 cation or grant a license OR REGISTRATION to an applicant whom it deter-
 mines to be qualified to hold such license OR REGISTRATION. THE GRANTING
 OF ANY SUCH LICENSE OR REGISTRATION SHALL APPLY ONLY TO  THE  JOB  TITLE
 INCLUDED IN THE APPLICATION AND TO ITS ASSOCIATED DUTIES. THE COMMISSION
 MAY,  UPON  REQUEST  AND  AT  ITS SOLE DISCRETION, ALLOW TRANSFER OF THE
 LICENSE OR REGISTRATION TO ANOTHER JOB TITLE UPON DETERMINATION THAT THE
 ORIGINAL APPLICATION WOULD HAVE BEEN SATISFACTORY HAD IT BEEN  SUBMITTED
 FOR THE NEW TITLE.
   3.  The  commission  shall  have the authority to deny any application
 pursuant to the provisions of this article following notice and opportu-
 nity for hearing.
   4. When the commission grants [an application] A LICENSE OR  REGISTRA-
 TION,  the  commission may limit or place such restrictions thereupon as
 it may deem necessary in the public interest.
   5. After an application for a casino key employee license  is  submit-
 ted,  final  action  of the commission shall be taken within ninety days
 after completion of all hearings and investigations and the  receipt  of
 all information required by the commission.

 S. 1509--A                         76                         A. 2009--A
 
   6.  Licenses  and registrations of casino key employees and gaming AND
 NON-GAMING employees issued pursuant to this article shall remain  valid
 for five years unless suspended, revoked or voided pursuant to law. Such
 licenses  and  registrations  may  be renewed by the holder thereof upon
 application,  on a form prescribed by the commission, and payment of the
 applicable fee. Notwithstanding the [forgoing] FOREGOING, if a gaming OR
 NON-GAMING employee registrant has not been  employed  in  any  position
 within  a  gaming facility for a period of three years, the registration
 of that gaming OR NON-GAMING employee shall lapse.
   7. SUBSEQUENT TO THE  ISSUANCE  OF  A  LICENSE  OR  REGISTRATION,  THE
 COMMISSION  MAY  SUSPEND,  REVOKE,  OR LIMIT THE LICENSE OR REGISTRATION
 UPON A FINDING THAT AN APPLICANT IS NO LONGER  QUALIFIED  TO  HOLD  SUCH
 LICENSE  OR  REGISTRATION  IN ACCORDANCE WITH THIS ARTICLE, OR AS IT MAY
 DEEM NECESSARY TO PROTECT THE PUBLIC INTEREST, FOLLOWING NOTICE  AND  AN
 OPPORTUNITY  FOR  A  HEARING.  THE  COMMISSION MAY TEMPORARILY SUSPEND A
 LICENSE OR REGISTRATION PENDING ANY INVESTIGATION, PROSECUTION, OR HEAR-
 ING IF IT IS DEEMED NECESSARY TO DO  SO  TO  PROTECT  THE  INTEGRITY  OF
 GAMING ACTIVITIES.
   8. The commission shall establish by regulation appropriate fees to be
 paid  upon  the  filing of the required applications. Such fees shall be
 deposited into the commercial gaming revenue fund.
   § 9. Subdivision 3 of section 1326 of the racing, pari-mutuel wagering
 and breeding law, as added by chapter  174  of  the  laws  of  2013,  is
 amended to read as follows:
   3.  Vendors  providing goods and services to gaming facility licensees
 or applicants ancillary to gaming, INCLUDING VENDORS WITH ACCESS TO  THE
 PLAYER DATABASE OR SENSITIVE PLAYER INFORMATION, VENDORS WITH HEIGHTENED
 SECURITY ACCESS OR INFORMATION, AND JUNKET ENTERPRISES shall be required
 to be licensed as an ancillary casino vendor enterprise and shall comply
 with  the standards for casino vendor license applicants. THE COMMISSION
 MAY ALSO REQUIRE ANY VENDOR REGULARLY CONDUCTING OVER TWO HUNDRED  FIFTY
 THOUSAND  DOLLARS OF BUSINESS WITH A GAMING LICENSEE OR APPLICANT WITHIN
 A TWELVE-MONTH PERIOD OR ONE HUNDRED THOUSAND DOLLARS OF BUSINESS WITHIN
 A THREE-MONTH PERIOD TO BE LICENSED AS AN ANCILLARY GAMING VENDOR.
   § 10. Subdivision 4 of section 1326 of the racing, pari-mutuel  wager-
 ing  and  breeding  law, as added by chapter 174 of the laws of 2013, is
 amended to read as follows:
   4. Each casino vendor enterprise required to be licensed  pursuant  to
 subdivision  one  of this section, as well as its owners; management and
 supervisory personnel[; and employees if such employees  have  responsi-
 bility  for  services  to a gaming facility applicant or licensee,] must
 qualify under the standards, except residency,  established  for  quali-
 fication  of a casino key employee under this article. EMPLOYEES OF SUCH
 VENDORS THAT HAVE RESPONSIBILITY  FOR  SERVICES  TO  A  GAMING  FACILITY
 APPLICANT  OR  LICENSEE MUST QUALIFY UNDER THE STANDARDS ESTABLISHED FOR
 QUALIFICATION OF A GAMING EMPLOYEE REGISTRATION UNDER THIS ARTICLE.
   EACH ANCILLARY CASINO VENDOR ENTERPRISE REQUIRED TO BE LICENSED PURSU-
 ANT TO SUBDIVISION THREE OF THIS SECTION, AS WELL AS ITS OWNERS; MANAGE-
 MENT; SUPERVISORY PERSONNEL AND EMPLOYEES THAT HAVE  RESPONSIBILITY  FOR
 SERVICES  TO  A GAMING FACILITY APPLICANT OR LICENSEE MUST QUALIFY UNDER
 THE STANDARDS ESTABLISHED FOR QUALIFICATION OF A GAMING EMPLOYEE  REGIS-
 TRATION UNDER THIS ARTICLE.
   §  11. Subdivision 5 of section 1326 of the racing, pari-mutuel wager-
 ing and breeding law, as added by chapter 174 of the laws  of  2013,  is
 amended to read as follows:

 S. 1509--A                         77                         A. 2009--A
 
   5.  Any  vendor  that  offers  goods  or services to a gaming facility
 applicant or licensee IN EXCESS OF TWENTY-FIVE THOUSAND DOLLARS WITHIN A
 TWELVE-MONTH PERIOD that is not included in subdivision one [or], two OR
 THREE of this section including, but not limited to site contractors and
 subcontractors,  shopkeepers located within the facility, gaming schools
 that possess slot machines for the  purpose  of  instruction,  [and  any
 non-supervisory  employee of a junket enterprise licensed under subdivi-
 sion three of this section] VENDING MACHINE PROVIDERS, LINEN  SUPPLIERS,
 GARBAGE  HANDLERS,  MAINTENANCE  COMPANIES, LIMOUSINE SERVICES, AND FOOD
 PURVEYORS, shall be required to register with the commission in  accord-
 ance with the regulations promulgated under this article.
   PRIOR  TO CONDUCTING BUSINESS WITH ANY VENDOR NOT INCLUDED IN SUBDIVI-
 SION ONE OR TWO OF THIS SECTION, WHICH IS PROVIDING BUSINESS WORTH  LESS
 THAN  THE  THRESHOLDS  PROVIDED  IN  THIS SUBDIVISION, A GAMING FACILITY
 APPLICANT OR LICENSEE SHALL NOTIFY THE COMMISSION OF THE INTENDED TRANS-
 ACTION, ALONG WITH ANY HISTORY OF  TRANSACTIONS  WITH  SUCH  VENDOR,  TO
 ALLOW  FOR  VERIFICATION THAT THE LICENSING REQUIREMENTS OF THIS SECTION
 DO NOT APPLY.
   ALL EMPLOYEES OF A VENDOR REGISTERED PURSUANT  TO  THIS  SECTION  THAT
 PROVIDE  SERVICES UPON THE PREMISES OF A GAMING FACILITY ARE REQUIRED TO
 BE REGISTERED AS AND MEET THE STANDARDS OF A NON-GAMING EMPLOYEE.
   Notwithstanding the provisions aforementioned, the executive  director
 may,  consistent with the public interest and the policies of this arti-
 cle, direct that individual vendors registered pursuant to this subdivi-
 sion be required to apply for either a casino vendor enterprise  license
 pursuant  to  subdivision  one  of  this section, or an ancillary vendor
 industry enterprise  license  pursuant  to  subdivision  three  of  this
 section,  as directed by the commission. The executive director may also
 order that any enterprise licensed as or required to be licensed  as  an
 ancillary casino vendor enterprise pursuant to subdivision three of this
 section  be  required  to  apply  for a casino vendor enterprise license
 pursuant to subdivision one of this section. The executive director  may
 also,  in  his  or  her  discretion,  order that an independent software
 contractor not otherwise required to be registered be either  registered
 as  a  vendor  pursuant  to  this subdivision or be licensed pursuant to
 either subdivision one or three of this section.
   [Each ancillary casino  vendor  enterprise  required  to  be  licensed
 pursuant  to  subdivision  three of this section, as well as its owners,
 management and supervisory personnel, and employees  if  such  employees
 have  responsibility  for  services  to  a  gaming facility applicant or
 licensee, shall establish their good character, honesty and integrity by
 clear and convincing evidence and shall provide such financial  informa-
 tion as may be required by the commission. Any enterprise required to be
 licensed  as  an  ancillary  casino  vendor  enterprise pursuant to this
 section shall be permitted to transact business with a  gaming  facility
 licensee  upon  filing  of  the appropriate vendor registration form and
 application for such licensure.]
   § 12. Subdivision 6 of section 1326 of the racing, pari-mutuel  wager-
 ing  and  breeding  law, as added by chapter 174 of the laws of 2013, is
 amended to read as follows:
   6. Any applicant, licensee or qualifier of a casino vendor  enterprise
 license or of an ancillary casino vendor enterprise license under subdi-
 vision  one of this section, and any vendor registrant under subdivision
 five of this section shall be disqualified in accordance with the crite-
 ria contained in section [one thousand three] THIRTEEN hundred  eighteen
 of this article, except that no such [ancillary casino vendor enterprise

 S. 1509--A                         78                         A. 2009--A

 license  under  subdivision three of this section or vendor registration
 under subdivision five of this section] APPLICANT, LICENSEE OR QUALIFIER
 shall be denied or revoked if such [vendor registrant] APPLICANT, LICEN-
 SEE  OR  QUALIFIER can affirmatively demonstrate rehabilitation pursuant
 to article twenty-three-A of the correction law.
   § 13. Section 1326 of the racing, pari-mutuel  wagering  and  breeding
 law is amended by adding a new subdivision 11 to read as follows:
   11. NOTWITHSTANDING THE PRECEDING SUBDIVISIONS, THE EXECUTIVE DIRECTOR
 MAY,  IN  HIS  OR  HER DISCRETION, WAIVE ANY OF THE REQUIREMENTS OF THIS
 SECTION WHEN A GAMING FACILITY APPLICANT  OR  LICENSEE  CAN  DEMONSTRATE
 THAT THE BUSINESS RELATIONSHIP WITH ANY INDIVIDUAL VENDOR WILL BE LIMIT-
 ED  IN  SCOPE AND DURATION AND THAT THE PUBLIC INTEREST AND THE POLICIES
 OF THIS ARTICLE WOULD NOT BE DIMINISHED BY SUCH  WAIVER.  IN  REQUESTING
 SUCH WAIVER, THE GAMING FACILITY APPLICANT OR LICENSEE SHALL PROVIDE ANY
 AND  ALL  INFORMATION  NEEDED TO MAKE SUCH DETERMINATION AND ANY AND ALL
 INFORMATION NEEDED AS A CONDITION OF SUCH WAIVER. THE EXECUTIVE DIRECTOR
 MAY REVOKE ANY SUCH WAIVER AT ANY TIME UPON  A  DETERMINATION  THAT  THE
 CIRCUMSTANCES UPON WHICH SUCH WAIVER WAS GRANTED HAVE CHANGED.
   § 14. This act shall take effect immediately.
 
                                  PART LL
 
   Section  1.  Subparagraph  (i)  of  paragraph  (a) of subdivision 2 of
 section 1306-a of the real property tax law, as amended by section 6  of
 part N of chapter 58 of the laws of 2011, is amended to read as follows:
   (i) The tax savings for each parcel receiving the exemption authorized
 by section four hundred twenty-five of this chapter shall be computed by
 subtracting  the  amount  actually  levied  against  the parcel from the
 amount that would have been levied if not for  the  exemption,  provided
 however,  that [beginning with] FOR the two thousand eleven-two thousand
 twelve THROUGH TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN school [year]
 YEARS, the tax savings applicable to any "portion" (which as used herein
 shall mean that part of  an  assessing  unit  located  within  a  school
 district) shall not exceed the tax savings applicable to that portion in
 the  prior  school  year multiplied by one hundred two percent, with the
 result rounded to the nearest dollar; AND PROVIDED FURTHER  THAT  BEGIN-
 NING WITH THE TWO THOUSAND NINETEEN-TWO THOUSAND TWENTY SCHOOL YEAR: (A)
 FOR  PURPOSES  OF THE EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWEN-
 TY-FIVE OF THIS CHAPTER, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL
 NOT EXCEED THE TAX SAVINGS FOR THE PRIOR YEAR, AND (B) FOR  PURPOSES  OF
 THE  CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF
 THE TAX LAW, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT  EXCEED
 THE  TAX  SAVINGS  APPLICABLE  TO  THAT PORTION IN THE PRIOR SCHOOL YEAR
 MULTIPLIED BY ONE HUNDRED TWO PERCENT, WITH THE RESULT  ROUNDED  TO  THE
 NEAREST  DOLLAR.  The tax savings attributable to the basic and enhanced
 exemptions shall be calculated separately. It shall be the  responsibil-
 ity  of  the  commissioner  to  calculate  tax  savings  limitations for
 purposes of this subdivision.
   § 2. Subparagraph (G) of paragraph 1 of subsection  (eee)  of  section
 606  of  the tax law, as amended by section 8 of part A of chapter 73 of
 the laws of 2016, is amended to read as follows:
   (G) "STAR tax savings" means the tax savings attributable to the  STAR
 exemption  within  a  portion of a school district, as determined by the
 commissioner pursuant to subdivision two  of  section  thirteen  hundred
 six-a of the real property tax law FOR PURPOSES OF THE CREDIT AUTHORIZED
 BY THIS SUBSECTION.

 S. 1509--A                         79                         A. 2009--A
 
   § 3. This act shall take effect immediately.
 
                                  PART MM
 
   Section  1.  Section  1405-B of the tax law is amended by adding a new
 subdivision (c) to read as follows:
   (C) THE INFORMATION CONTAINED WITHIN INFORMATION RETURNS  FILED  UNDER
 SUBDIVISION  (B)  OF THIS SECTION MAY BE PROVIDED BY THE COMMISSIONER TO
 LOCAL ASSESSORS FOR USE IN REAL PROPERTY TAX  ADMINISTRATION,  AND  SUCH
 INFORMATION  SHALL NOT BE SUBJECT TO THE SECRECY PROVISIONS SET FORTH IN
 SECTION FOURTEEN HUNDRED EIGHTEEN OF THIS  CHAPTER,  PROVIDED,  HOWEVER,
 THAT  THE  COMMISSIONER  SHALL  NOT  DISCLOSE SOCIAL SECURITY NUMBERS OR
 EMPLOYER IDENTIFICATION NUMBERS.
   § 2. This act shall take effect January 1, 2020.
 
                                  PART NN
 
   Section 1. Paragraph 3 of subsection (e-1) of section 606 of  the  tax
 law,  as added by section 2 of part K of chapter 59 of the laws of 2014,
 is amended as follows:
   (3) Determination of credit. For  taxable  years  after  two  thousand
 thirteen  [and  prior to two thousand sixteen], the amount of the credit
 allowable under this subsection shall be determined as follows:
 If household gross income    Excess real property    The credit amount is
 for the taxable year is:     taxes are the excess    the following
                              of real property tax    percentage of excess
                              equivalent or the       property taxes:
                              excess of qualifying
                              real property taxes
                              over the following
                              percentage of
                              household gross
                              income:
 Less than $100,000                   4                    4.5
 $100,000 to less than                5                    3.0
 $150,000
 $150,000 to less than                6                    1.5
 $200,000
   Notwithstanding the foregoing provisions, the  maximum  credit  deter-
 mined under this subparagraph may not exceed five hundred dollars.
   § 2. This act shall take effect immediately and shall apply to taxable
 years  beginning  on  and after January 1, 2016; provided, however, that
 the amendments to subsection (e-1) of section 606 of the tax law made by
 section one of this act shall not affect the repeal of  such  subsection
 and shall be deemed to be repealed therewith.
 
                                  PART OO
 
   Section  1.  Subdivision v of section 233 of the real property law, as
 amended by chapter 566 of the laws  of  1996,  is  amended  to  read  as
 follows:
   v.  1.  On  and  after  April first, nineteen hundred eighty-nine, the
 commissioner of housing and community renewal shall have the  power  and
 duty  to  enforce  and  ensure  compliance  with  the provisions of this
 section. However, the commissioner shall not have the power or  duty  to

 S. 1509--A                         80                         A. 2009--A
 
 enforce  manufactured  home park rules and regulations established under
 subdivision f of this section.
   2.  On  or  before  January  first, nineteen hundred eighty-nine, each
 manufactured home park owner  or  operator  shall  file  a  registration
 statement  with  the  commissioner  and  shall thereafter file an annual
 registration statement on or before January  first  of  each  succeeding
 year. The commissioner, by regulation, shall provide that such registra-
 tion  statement  shall  include  only the names of all persons owning an
 interest in the park, the names of all tenants of the park, all services
 provided by the park owner to the tenants and  a  copy  of  all  current
 manufactured  home  park  rules  and  regulations. THE REPORTING OF SUCH
 INFORMATION TO THE COMMISSIONER OF  TAXATION  AND  FINANCE  PURSUANT  TO
 SUBPARAGRAPH  (B)  OF  PARAGRAPH  SIX OF SUBSECTION (EEE) OF SECTION SIX
 HUNDRED SIX OF THE TAX LAW SHALL BE DEEMED TO SATISFY  THE  REQUIREMENTS
 OF THIS PARAGRAPH.
   3. Whenever there shall be a violation of this section, an application
 may  be made by the commissioner of housing and community renewal in the
 name of the people of the state of New York to a court or justice having
 jurisdiction by a special proceeding to issue an  injunction,  and  upon
 notice  to  the  defendant  of  not  less  than five days, to enjoin and
 restrain the continuance of such violation; and if it  shall  appear  to
 the  satisfaction  of  the  court  or justice that the defendant has, in
 fact, violated this section, an injunction may be issued by  such  court
 or  justice,  enjoining  and  restraining any further violation and with
 respect to this subdivision, directing  the  filing  of  a  registration
 statement.  In any such proceeding, the court may make allowances to the
 commissioner of housing and community renewal of a sum not exceeding two
 thousand dollars against each defendant, and direct restitution.   When-
 ever  the  court  shall  determine  that a violation of this section has
 occurred, the court may impose a civil penalty  of  not  more  than  one
 thousand  five hundred dollars for each violation. Such penalty shall be
 deposited in the manufactured home cooperative fund, created pursuant to
 section fifty-nine-h of the private housing finance law.  In  connection
 with  any  such  proposed  application,  the commissioner of housing and
 community renewal is authorized to take proof and make  a  determination
 of  the  relevant  facts  and  to issue subpoenas in accordance with the
 civil practice law and rules. The provisions of this  subdivision  shall
 not impair the rights granted under subdivision u of this section.
   §  2.  Subparagraph  (B) of paragraph 6 of subsection (eee) of section
 606 of the tax law, as amended by section 8 of part A of chapter  73  of
 the laws of 2016, is amended to read as follows:
   (B)  (I)  In  the case of property consisting of a mobile home that is
 described in paragraph (1) of subdivision two of  section  four  hundred
 twenty-five  of  the  real  property  tax  law, the amount of the credit
 allowable with respect to such mobile home shall be equal to  the  basic
 STAR  tax  savings for the school district portion, or the enhanced STAR
 tax savings for the school district portion,  whichever  is  applicable,
 that  would  be  applied  to  a separately assessed parcel in the school
 district portion with a taxable assessed value equal to twenty  thousand
 dollars  multiplied  by  the  latest  state equalization rate or special
 equalization rate for the assessing unit in which  the  mobile  home  is
 located. Provided, however, that if the commissioner is in possession of
 information,  including  but  not  limited  to  assessment records, that
 demonstrates to the  commissioner's  satisfaction  that  the  taxpayer's
 mobile  home  is  worth  more  than  twenty  thousand dollars, or if the
 taxpayer provides the commissioner with such information, the taxpayer's

 S. 1509--A                         81                         A. 2009--A
 
 credit shall be increased accordingly, but in no case shall  the  credit
 exceed the basic STAR tax savings or enhanced STAR tax savings, whichev-
 er is applicable, for the school district portion.
   (II)  THE  COMMISSIONER  MAY  IMPLEMENT  AN  ELECTRONIC SYSTEM FOR THE
 REPORTING OF INFORMATION BY OWNERS AND OPERATORS  OF  MANUFACTURED  HOME
 PARKS,  AS DEFINED BY SECTION TWO HUNDRED THIRTY-THREE OF THE REAL PROP-
 ERTY LAW. UPON THE IMPLEMENTATION OF SUCH A SYSTEM, EACH SUCH OWNER  AND
 OPERATOR SHALL FILE QUARTERLY ELECTRONIC STATEMENTS WITH THE COMMISSION-
 ER NO LATER THAN TWENTY-ONE DAYS AFTER THE END OF EACH CALENDAR QUARTER.
 SUCH STATEMENT SHALL REQUIRE REPORTING OF NAMES OF ALL PERSONS OWNING AN
 INTEREST  IN  THE  PARK,  THE SERVICES PROVIDED BY THE PARK OWNER TO THE
 TENANTS, THE NAMES AND ADDRESSES OF ALL TENANTS OF THE PARK, WHETHER THE
 TENANT LEASES OR OWNS THE HOME, AND SUCH ADDITIONAL INFORMATION  AS  THE
 COMMISSIONER  MAY  DEEM  NECESSARY  FOR THE PROPER ADMINISTRATION OF THE
 STAR EXEMPTION ESTABLISHED PURSUANT TO SECTION FOUR HUNDRED  TWENTY-FIVE
 OF  THE REAL PROPERTY TAX LAW AND THE STAR CREDIT AND ANY OTHER PROPERTY
 TAX-BASED CREDIT ESTABLISHED PURSUANT TO THIS SECTION. IN THE CASE OF  A
 REGISTRATION  STATEMENT  FOR  THE FIRST CALENDAR QUARTER OF A YEAR, SUCH
 STATEMENT SHALL ALSO INCLUDE A COPY OF  ALL  CURRENT  MANUFACTURED  HOME
 PARK  RULES  AND REGULATIONS. THE COMMISSIONER SHALL PROVIDE THE COMMIS-
 SIONER OF HOUSING AND COMMUNITY RENEWAL WITH THE  INFORMATION  CONTAINED
 IN  EACH  QUARTERLY  REPORT  NO LATER THAN THIRTY DAYS AFTER THE RECEIPT
 THEREOF.
   § 3. This act shall take effect immediately.
 
                                  PART PP
 
   Section 1. Subparagraph (iv) of paragraph  (b)  of  subdivision  4  of
 section  425  of  the  real property tax law, as amended by section 2 of
 part B of chapter 59 of the laws of 2018, is amended to read as follows:
   (iv) (A) Effective with applications for  the  enhanced  exemption  on
 final  assessment  rolls  to  be completed in two thousand nineteen, the
 application form shall indicate that all owners of the property and  any
 owners'  spouses  residing on the premises must have their income eligi-
 bility verified annually  by  the  department  and  must  furnish  their
 taxpayer  identification  numbers  in  order to facilitate matching with
 records of the department. The income eligibility of such persons  shall
 be  verified  annually  by  the  department,  and the assessor shall not
 request income documentation from them. All applicants for the  enhanced
 exemption  and  all  assessing units shall be required to participate in
 this program, which shall be  known  as  the  STAR  income  verification
 program.
   (B) EFFECTIVE WITH FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOU-
 SAND TWENTY, THE COMMISSIONER SHALL ALSO ANNUALLY VERIFY THE ELIGIBILITY
 OF SUCH PERSONS FOR THE ENHANCED EXEMPTION ON THE BASIS OF AGE AND RESI-
 DENCY AS WELL AS INCOME.
   (C) Where the commissioner finds that the enhanced exemption should be
 replaced  with a basic exemption because [the income limitation applica-
 ble to the enhanced exemption has been exceeded] THE  PROPERTY  IS  ONLY
 ELIGIBLE  FOR  A  BASIC  EXEMPTION, he or she shall provide the property
 owners with notice and an opportunity  to  submit  to  the  commissioner
 evidence to the contrary. Where the commissioner finds that the enhanced
 exemption  should  be  removed  or  denied without being replaced with a
 basic exemption because [the income limitation applicable to  the  basic
 exemption  has  also  been  exceeded]  THE  PROPERTY IS NOT ELIGIBLE FOR
 EITHER EXEMPTION, he or she  shall  provide  the  property  owners  with

 S. 1509--A                         82                         A. 2009--A
 
 notice  and an opportunity to submit to the commissioner evidence to the
 contrary. In either case, if the owners fail to respond to  such  notice
 within  forty-five  days  from the mailing thereof, or if their response
 does  not  show  to the commissioner's satisfaction that the property is
 eligible for the exemption claimed, the commissioner  shall  direct  the
 assessor  or  other  person  having custody or control of the assessment
 roll or tax roll to either replace the enhanced exemption with  a  basic
 exemption, or to remove or deny the enhanced exemption without replacing
 it  with  a  basic  exemption,  as  appropriate.  The commissioner shall
 further direct such person to  correct  the  roll  accordingly.  Such  a
 directive  shall  be  binding  upon  the assessor or other person having
 custody or control of the assessment roll or  tax  roll,  and  shall  be
 implemented by such person without the need for further documentation or
 approval.
   [(C)]  (D)  Notwithstanding  any  provision  of  law  to the contrary,
 neither an assessor nor a board of assessment review has  the  authority
 to  consider  an objection to the replacement or removal or denial of an
 exemption pursuant to this  subdivision,  nor  may  such  an  action  be
 reviewed  in  a proceeding to review an assessment pursuant to title one
 or one-A of article seven of this chapter. Such an action  may  only  be
 challenged before the department. If a taxpayer is dissatisfied with the
 department's  final determination, the taxpayer may appeal that determi-
 nation to the state board of real property tax services in  a  form  and
 manner  to be prescribed by the commissioner. Such appeal shall be filed
 within forty-five days from  the  issuance  of  the  department's  final
 determination. If dissatisfied with the state board's determination, the
 taxpayer  may  seek judicial review thereof pursuant to article seventy-
 eight of the civil practice law and rules. The taxpayer shall  otherwise
 have  no  right to challenge such final determination in a court action,
 administrative proceeding or any other form of  legal  recourse  against
 the  commissioner,  the department, the state board of real property tax
 services, the assessor or other person having custody or control of  the
 assessment roll or tax roll regarding such action.
   §  2. Paragraph (c) of subdivision 13 of section 425 of the real prop-
 erty tax law, as amended by section 1 of part J of  chapter  57  of  the
 laws  of  2013,  is amended, and a new paragraph (f) is added to read as
 follows:
   (c) Additional consequences. A penalty tax may be imposed pursuant  to
 this  subdivision whether or not the improper exemption has been revoked
 in the manner provided by this section. In addition, a person or persons
 who are found to have made a material misstatement shall be disqualified
 from further exemption pursuant to this section,  AND  FROM  THE  CREDIT
 AUTHORIZED  BY  SUBSECTION  (EEE)  OF SECTION SIX HUNDRED SIX OF THE TAX
 LAW, for a period of [five years if  such  misstatement  appears  on  an
 application  filed  prior  to October first, two thousand thirteen, and]
 six years [if such misstatement appears on an application  filed  there-
 after].  In  addition,  such  person or persons may be subject to prose-
 cution pursuant to the penal law.
   (F) ASSESSOR NOTIFICATION. THE ASSESSOR SHALL INFORM THE  COMMISSIONER
 WHENEVER  A PERSON OR PERSONS IS FOUND TO HAVE MADE A MATERIAL MISSTATE-
 MENT ON AN APPLICATION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION.
   § 3. Paragraph (13) of subsection (eee) of section 606 of the tax  law
 is amended by adding a new subparagraph (E) to read as follows:
   (E) A TAXPAYER WHO IS FOUND TO HAVE MADE A MATERIAL MISSTATEMENT ON AN
 APPLICATION FOR THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE DISQUALI-
 FIED  FROM RECEIVING SUCH CREDIT FOR SIX YEARS. AS USED HEREIN, THE TERM

 S. 1509--A                         83                         A. 2009--A

 "MATERIAL MISSTATEMENT" SHALL HAVE THE SAME  MEANING  AS  SET  FORTH  IN
 PARAGRAPH  (A)  OF  SUBDIVISION THIRTEEN OF SECTION FOUR HUNDRED TWENTY-
 FIVE OF THE REAL PROPERTY TAX LAW.
   § 4. Subparagraph (E) of paragraph (10) of subsection (eee) of section
 606  of  the tax law, as amended by section 8 of part A of chapter 73 of
 the laws of 2016, is amended to read as follows:
   (E) If the commissioner determines after issuing  an  advance  payment
 that  it was issued in an excessive amount or to an ineligible or incor-
 rect party, the commissioner shall be empowered to utilize  any  of  the
 procedures  for  collection,  levy  and  lien of personal income tax set
 forth in this article, any other relevant procedures  referenced  within
 the  provisions of this article, and any other law as may be applicable,
 to recoup the improperly issued amount; PROVIDED THAT IN THE EVENT  SUCH
 PARTY  WAS  DETERMINED  TO  BE  INELIGIBLE  ON THE BASIS THAT HIS OR HER
 PRIMARY RESIDENCE RECEIVED THE STAR EXEMPTION IN THE  ASSOCIATED  FISCAL
 YEAR,  THE  IMPROPERLY  ISSUED  CREDIT AMOUNT SHALL BE DEEMED A CLERICAL
 ERROR AND SHALL BE PAID UPON NOTICE AND DEMAND WITHOUT THE ISSUANCE OF A
 NOTICE OF DEFICIENCY AND SHALL BE ASSESSED, COLLECTED AND  PAID  IN  THE
 SAME MANNER AS TAXES.
   § 5. This act shall take effect immediately.
 
                                  PART QQ
 
   Section  1.  Section  425  of  the real property tax law is amended by
 adding a new subdivision 17 to read as follows:
   17. CERTAIN DISCLOSURES AUTHORIZED. (A) NOTWITHSTANDING ANY  PROVISION
 OF  LAW  TO  THE CONTRARY, WHEN THE COMMISSIONER HAS DETERMINED THAT THE
 OWNER OR OWNERS OF A PARCEL OF REAL PROPERTY ARE INELIGIBLE  FOR  EITHER
 THE STAR EXEMPTION AUTHORIZED BY THIS SECTION OR THE STAR CREDIT AUTHOR-
 IZED  BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE
 COMMISSIONER MAY DISCLOSE THE NAMES OF  SUCH  OWNER  OR  OWNERS  TO  THE
 ASSESSOR  OF  THE  ASSESSING  UNIT  IN WHICH THE PROPERTY IS LOCATED. IN
 ADDITION:
   (I) WHERE THE COMMISSIONER HAS FOUND THAT THE STAR EXEMPTION OR CREDIT
 COULD NOT BE GRANTED BECAUSE THE INCOME OF THE OWNER OR OWNERS IS  ABOVE
 THE  APPLICABLE  LIMIT, THE COMMISSIONER MAY SO ADVISE THE ASSESSOR, BUT
 SHALL NOT DISCLOSE THE AMOUNT OF INCOME OF ANY SUCH OWNER OR OWNERS.
   (II) WHERE THE COMMISSIONER HAS FOUND THAT THE STAR EXEMPTION OR CRED-
 IT COULD NOT BE GRANTED BECAUSE THE PROPERTY IS NOT  THE  PRIMARY  RESI-
 DENCE  OF  ONE OR MORE OF THE OWNERS THEREOF, OR THAT THE OWNER'S SPOUSE
 IS RECEIVING A STAR EXEMPTION OR STAR CREDIT ON ANOTHER RESIDENCE  OR  A
 COMPARABLE BENEFIT ON A RESIDENCE IN ANOTHER STATE, THE COMMISSIONER MAY
 SO ADVISE THE ASSESSOR. THE COMMISSIONER MAY FURTHER ADVISE THE ASSESSOR
 OF  THE  FACTS  SUPPORTING THAT DETERMINATION, INCLUDING THE LOCATION OR
 LOCATIONS OF THE PROPERTY OWNER'S OTHER RESIDENCE OR RESIDENCES, IF ANY.
   (III)  WHERE  THE  COMMISSIONER  HAS  FOUND  THAT  THE  ENHANCED  STAR
 EXEMPTION  OR CREDIT COULD NOT BE GRANTED BECAUSE THE OWNER OR OWNERS DO
 NOT MEET THE APPLICABLE AGE REQUIREMENT, THE COMMISSIONER MAY SO  ADVISE
 THE  ASSESSOR,  AND MAY FURTHER ADVISE THE ASSESSOR OF THEIR BIRTH DATES
 IF KNOWN.
   (IV) WHERE THE COMMISSIONER HAS FOUND THAT THE ENHANCED STAR EXEMPTION
 OR CREDIT COULD NOT BE GRANTED BECAUSE THE OWNER  OR  OWNERS  FAILED  TO
 ENROLL IN THE INCOME VERIFICATION PROGRAM OR FAILED TO SUBMIT THE INCOME
 WORKSHEET REQUIRED THEREUNDER, THE COMMISSIONER MAY SO ADVISE THE ASSES-
 SOR.

 S. 1509--A                         84                         A. 2009--A
 
   (B)  INFORMATION DISCLOSED TO AN ASSESSOR PURSUANT TO THIS SUBDIVISION
 SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION.  IT
 SHALL  BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE
 PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
   §  2.  Section 467 of the real property tax law is amended by adding a
 new subdivision 11 to read as follows:
   11. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, UPON THE
 REQUEST OF AN ASSESSOR, THE COMMISSIONER MAY DISCLOSE  TO  THE  ASSESSOR
 THE  NAMES  AND  ADDRESSES  OF THE OWNERS OF PROPERTY IN THAT ASSESSOR'S
 ASSESSING UNIT WHO ARE RECEIVING THE ENHANCED STAR EXEMPTION OR ENHANCED
 STAR CREDIT AND WHOSE FEDERAL ADJUSTED GROSS INCOME  IS  LESS  THAN  THE
 UPPERMOST  AMOUNT  SPECIFIED  BY  SUBPARAGRAPH THREE OF PARAGRAPH (B) OF
 SUBDIVISION ONE OF THIS SECTION (REPRESENTED THEREIN  AS  M  +  $8,400).
 SUCH AMOUNT SHALL BE DETERMINED WITHOUT REGARD TO ANY LOCAL OPTIONS THAT
 THE  MUNICIPAL  CORPORATION MAY OR MAY NOT HAVE EXERCISED IN RELATION TO
 INCREASING OR DECREASING THE MAXIMUM INCOME ELIGIBILITY LEVEL AUTHORIZED
 BY THIS SECTION, PROVIDED THAT THE AMOUNT SO DETERMINED FOR A CITY  WITH
 A POPULATION OF ONE MILLION OR MORE SHALL TAKE INTO ACCOUNT THE DISTINCT
 MAXIMUM  INCOME ELIGIBILITY LEVEL ESTABLISHED FOR SUCH CITY BY PARAGRAPH
 (A) OF SUBDIVISION THREE OF THIS SECTION. IN NO CASE SHALL  THE  COMMIS-
 SIONER DISCLOSE TO AN ASSESSOR THE AMOUNT OF AN OWNER'S FEDERAL ADJUSTED
 GROSS INCOME.
   (B) THE ASSESSOR MAY USE THE INFORMATION CONTAINED IN SUCH A REPORT TO
 CONTACT THOSE OWNERS WHO ARE NOT ALREADY RECEIVING THE EXEMPTION AUTHOR-
 IZED  BY THIS SECTION AND TO SUGGEST THAT THEY CONSIDER APPLYING FOR IT.
 PROVIDED, HOWEVER, THAT NOTHING CONTAINED HEREIN SHALL BE  CONSTRUED  AS
 ENABLING  ANY  PERSON OR PERSONS TO QUALIFY FOR THE EXEMPTION AUTHORIZED
 BY THIS SECTION ON THE BASIS OF THEIR  FEDERAL  ADJUSTED  GROSS  INCOME,
 RATHER  THAN  ON THE BASIS OF THEIR INCOME AS DETERMINED PURSUANT TO THE
 PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION.
   (C) INFORMATION DISCLOSED TO AN ASSESSOR PURSUANT TO THIS  SUBDIVISION
 SHALL  BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. IT
 SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO  THE
 PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
   §  3. Section 1532 of the real property tax law is amended by adding a
 new subdivision 5 to read as follows:
   5. INFORMATION REGARDING DECEDENTS PROVIDED BY THE COMMISSIONER  TO  A
 COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES PURSUANT TO SUBSECTION (C)
 OF  SECTION  SIX HUNDRED FIFTY-ONE OF THE TAX LAW SHALL BE USED ONLY FOR
 PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. THE CONTENTS OF THE REPORT
 MAY BE SHARED WITH THE ASSESSOR AND TAX COLLECTING OFFICER OF THE MUNIC-
 IPAL CORPORATION IN WHICH THE DECEDENT'S FORMER  RESIDENCE  IS  LOCATED,
 AND  WITH  THE  ENFORCING OFFICER IF SUCH RESIDENCE IS SUBJECT TO DELIN-
 QUENT TAXES. THE INFORMATION SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND
 SHALL NOT BE SUBJECT TO THE PROVISIONS OF  ARTICLE  SIX  OF  THE  PUBLIC
 OFFICERS LAW.
   § 4. Subsection (c) of section 651 of the tax law, as amended by chap-
 ter 783 of the laws of 1962, is amended to read as follows:
   (c)  Decedents.  The  return for any deceased individual shall be made
 and filed by his executor, administrator, or other person  charged  with
 his  property.  If a final return of a decedent is for a fractional part
 of a year, the due date of such return shall be the fifteenth day of the
 fourth month following the close of the twelve-month period which  began
 with the first day of such fractional part of the year.  NOTWITHSTANDING
 ANY PROVISION OF LAW TO THE CONTRARY, WHEN A RETURN HAS BEEN FILED FOR A
 DECEDENT,  THE  COMMISSIONER  MAY DISCLOSE THE DECEDENT'S NAME, ADDRESS,

 S. 1509--A                         85                         A. 2009--A
 
 AND THE DATE OF DEATH TO THE DIRECTOR OF REAL PROPERTY TAX  SERVICES  OF
 THE COUNTY IN WHICH THE ADDRESS REPORTED ON SUCH RETURN IS LOCATED.
   § 5. This act shall take effect immediately.
 
                                  PART RR
 
   Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real
 property  tax law, as added by section 1 of part FF of chapter 57 of the
 laws of 2010, is amended to read as follows:
   (b-1) Income. For final assessment rolls to be used for  the  levy  of
 taxes  for the two thousand eleven-two thousand twelve THROUGH TWO THOU-
 SAND EIGHTEEN-TWO THOUSAND NINETEEN school [year and thereafter]  YEARS,
 the parcel's affiliated income may be no greater than five hundred thou-
 sand  dollars,  as  determined  by  the  commissioner  [of  taxation and
 finance] pursuant to SUBDIVISION FOURTEEN OF THIS SECTION OR section one
 hundred seventy-one-u of the tax law, in order to be  eligible  for  the
 basic exemption authorized by this section. BEGINNING WITH THE TWO THOU-
 SAND  NINETEEN-TWO  THOUSAND  TWENTY  SCHOOL  YEAR,  FOR PURPOSES OF THE
 EXEMPTION AUTHORIZED BY THIS SECTION, THE PARCEL'S AFFILIATED INCOME MAY
 BE NO GREATER THAN TWO HUNDRED FIFTY THOUSAND DOLLARS, AS SO DETERMINED.
 As used herein, the term "affiliated income"  shall  mean  the  combined
 income  of all of the owners of the parcel who resided primarily thereon
 on the applicable taxable status date, and of any owners' spouses resid-
 ing primarily thereon. For exemptions on final assessment  rolls  to  be
 used  for  the  levy  of  taxes for the two thousand eleven-two thousand
 twelve school year, affiliated income shall be determined based upon the
 parties' incomes for the income tax year ending in two thousand nine. In
 each subsequent school year, the applicable income  tax  year  shall  be
 advanced  by  one  year. The term "income" as used herein shall have the
 same meaning as in subdivision four of this section.
   § 2. Subparagraph (A) of paragraph 3 of subsection  (eee)  of  section
 606 of the tax law, as added by section 8 of part A of chapter 73 of the
 laws of 2016, is amended to read as follows:
   (A)  Beginning  with taxable years after two thousand fifteen, a basic
 STAR credit shall be available to a qualified taxpayer if the affiliated
 income of the parcel that serves as the taxpayer's primary residence  is
 less  than  or  equal to five hundred thousand dollars. THE INCOME LIMIT
 ESTABLISHED FOR THE BASIC STAR EXEMPTION BY PARAGRAPH (B-1) OF  SUBDIVI-
 SION  THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX
 LAW SHALL NOT BE TAKEN INTO ACCOUNT WHEN DETERMINING ELIGIBILITY FOR THE
 BASIC STAR CREDIT.
   § 3. This act shall take effect immediately.
 
                                  PART SS
 
   Section 1. Subdivision 6 of section 1306-a of the  real  property  tax
 law,  as  amended  by  section 3 of part TT of chapter 59 of the laws of
 2017, is amended to read as follows:
   6. When the commissioner determines, at least twenty days prior to the
 levy of school district taxes, that an advance credit  of  the  personal
 income  tax credit authorized by subsection (eee) of section six hundred
 six of the tax law will be provided to the owners of a  parcel  in  that
 school  district,  he  or  she  shall so notify the assessor, the county
 director of real property tax  services,  and  the  authorities  of  the
 school  district,  who  shall  cause a statement to be placed on the tax
 bill for the parcel in substantially the following form:  "An  estimated

 S. 1509--A                         86                         A. 2009--A
 
 STAR  check HAS BEEN OR will be mailed to you [upon issuance] by the NYS
 Tax Department. Any overpayment or underpayment  can  be  reconciled  on
 your next tax return or STAR credit check."
   Notwithstanding  any  provision  of  law to the contrary, in the event
 that the parcel in question had been granted a  STAR  exemption  on  the
 assessment  roll upon which school district taxes are to be levied, such
 exemption shall be deemed null and  void,  shall  be  removed  from  the
 assessment  roll, and shall be disregarded when the parcel's tax liabil-
 ity is determined. The assessor or other  local  official  or  officials
 having  custody  and  control  of  the data file used to generate school
 district tax rolls and tax bills shall be  authorized  and  directed  to
 change  such file as necessary to enable the school district authorities
 to discharge the duties imposed upon them by this subdivision.
   § 2. This act shall take effect immediately.
 
                                  PART TT
 
   Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real
 property tax law, as added by section 1 of part D of chapter 60  of  the
 laws of 2016, is amended to read as follows:
   (a-2)  Notwithstanding  any provision of law to the contrary, where [a
 renewal] AN application for the "enhanced" STAR exemption authorized  by
 subdivision  four  of  this  section has not been filed on or before the
 taxable status date, and the owner believes that good cause existed  for
 the  failure  to  file the [renewal] application by that date, the owner
 may, no later than the last day for paying school taxes  without  incur-
 ring  interest  or penalty, submit a written request to the commissioner
 asking him or her to extend the filing deadline and grant the exemption.
 Such request shall contain  an  explanation  of  why  the  deadline  was
 missed, and shall be accompanied by [a renewal] AN application, reflect-
 ing  the  facts  and circumstances as they existed on the taxable status
 date. After consulting with the assessor, the  commissioner  may  extend
 the  filing  deadline  and  grant  the  exemption if the commissioner is
 satisfied that (i) good cause  existed  for  the  failure  to  file  the
 [renewal]  application  by  the  taxable  status date, and that (ii) the
 applicant is otherwise entitled to the exemption. The commissioner shall
 mail notice of his or her determination to such owner and the  assessor.
 If  the  determination  states  that  the  commissioner  has granted the
 exemption, the assessor shall thereupon be authorized  and  directed  to
 correct  the  assessment  roll  accordingly,  or,  if another person has
 custody or control of the assessment roll, to direct that person to make
 the appropriate corrections. If the correction is not made before school
 taxes are levied, the [failure to take the exemption into account in the
 computation of the tax shall be deemed a "clerical error"  for  purposes
 of  title  three of article five of this chapter, and shall be corrected
 accordingly]  SCHOOL  DISTRICT  AUTHORITIES  SHALL  BE  AUTHORIZED   AND
 DIRECTED  TO  TAKE ACCOUNT OF THE FACT THAT THE COMMISSIONER HAS GRANTED
 THE EXEMPTION BY CORRECTING THE APPLICANT'S TAX BILL  AND/OR  ISSUING  A
 REFUND ACCORDINGLY.
   § 2. Paragraph (d) of subdivision 2 of section 496 of the real proper-
 ty tax law, as added by section 3 of part A of chapter 60 of the laws of
 2016, is amended to read as follows:
   (d) If the applicant is renouncing a STAR exemption in order to quali-
 fy  for the personal income tax credit authorized by subsection (eee) of
 section six hundred six of the tax law,  and  no  other  exemptions  are
 being renounced on the same application, OR IF THE APPLICANT IS RENOUNC-

 S. 1509--A                         87                         A. 2009--A
 
 ING A STAR EXEMPTION BEFORE SCHOOL TAXES HAVE BEEN LEVIED ON THE ASSESS-
 MENT  ROLL UPON WHICH THAT EXEMPTION APPEARS, no processing fee shall be
 applicable.
   § 3. Paragraph (a) of subdivision 2 of section 496 of the real proper-
 ty  tax law, as amended by section 3 of part A of chapter 60 of the laws
 of 2016, is amended to read as follows:
   (a) For each assessment roll on which the renounced exemption appears,
 the assessed value that was exempted shall be multiplied by the tax rate
 or rates that were applied to that assessment roll, OR IN THE CASE OF  A
 RENOUNCED  STAR EXEMPTION, THE TAX SAVINGS CALCULATED PURSUANT TO SUBDI-
 VISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THIS  CHAPTER.  Interest
 shall  then  be  added  to  each  such product at the rate prescribed by
 section nine hundred twenty-four-a of this chapter or such other law  as
 may  be  applicable  for each month or portion thereon since the levy of
 taxes upon such assessment roll.
   § 4. Paragraph 5 of subsection (eee) of section 606 of the tax law, as
 amended by section 8 of part A of chapter 73 of the  laws  of  2016,  is
 amended to read as follows:
   (5)  Disqualification.  A  taxpayer  shall  not qualify for the credit
 authorized by this subsection if the parcel that serves as  the  taxpay-
 er's  primary  residence  received  the STAR exemption on the assessment
 roll upon which school district taxes for  the  associated  fiscal  year
 [where]  WERE  levied.  Provided,  however, that the taxpayer may remove
 this disqualification  by  renouncing  the  exemption  [and  making  any
 required  payments]  by  December  thirty-first  of the taxable year, as
 provided by subdivision sixteen of section four hundred  twenty-five  of
 the  real  property tax law, AND MAKING ANY REQUIRED PAYMENTS WITHIN THE
 TIME FRAME PRESCRIBED BY SECTION FOUR HUNDRED  NINETY-SIX  OF  THE  REAL
 PROPERTY TAX LAW.
   § 5. This act shall take effect immediately.
 
                                  PART UU
 
   Section  1.  The  article heading of article 13-F of the public health
 law, as amended by chapter 448 of the laws of 2012, is amended  to  read
 as follows:
                      REGULATION OF TOBACCO PRODUCTS,
                  VAPOR PRODUCTS, ELECTRONIC CIGARETTES,
                       HERBAL CIGARETTES AND SMOKING
         PARAPHERNALIA; DISTRIBUTION TO [MINORS] PERSONS UNDER THE
                             AGE OF TWENTY-ONE
   § 2. Subdivisions 1 and 4 of section 1399-aa of the public health law,
 subdivision 1 as amended by chapter 13 of the laws of 2003, and subdivi-
 sion  4 as added by chapter 799 of the laws of 1992, are amended and six
 new subdivisions 14, 15, 16, 17, 18 and 19 are added to read as follows:
   1. "Enforcement officer"  means  the  enforcement  officer  designated
 pursuant  to  article thirteen-E of this chapter to enforce such article
 and hold hearings pursuant thereto; provided that in a city with a popu-
 lation of more than one million it shall also mean an officer or employ-
 ee or any agency of such city that is authorized to  enforce  any  local
 law  of  such  city  related  to  the  regulation of the sale of tobacco
 products to [minors] PERSONS UNDER THE AGE OF TWENTY-ONE.
   4. "Private club" means an organization with no more than an insignif-
 icant portion of its membership comprised of people  under  the  age  of
 [eighteen] TWENTY-ONE years that regularly receives dues and/or payments
 from its members for the use of space, facilities and services.

 S. 1509--A                         88                         A. 2009--A
 
   14.  "PRICE  REDUCTION  INSTRUMENT" MEANS ANY COUPON, VOUCHER, REBATE,
 CARD, PAPER, NOTE, FORM,  STATEMENT,  TICKET,  IMAGE,  OR  OTHER  ISSUE,
 WHETHER  IN  PAPER,  DIGITAL,  OR  ANY  OTHER  FORM, USED FOR COMMERCIAL
 PURPOSES TO RECEIVE AN ARTICLE, PRODUCT, SERVICE, OR ACCOMMODATION WITH-
 OUT CHARGE OR AT A DISCOUNTED PRICE.
   15. "DEALER" MEANS A DEALER, AS DEFINED IN SECTION FOUR HUNDRED SEVEN-
 TY OF THE TAX LAW OR A VAPOR PRODUCTS DEALER AS DEFINED IN SECTION ELEV-
 EN HUNDRED EIGHTY OF THE TAX LAW.
   16. "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS
 OF  THE  PRESENCE  OF  NICOTINE  THEREIN,  THAT  IS  MANUFACTURED INTO A
 FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE,  ELECTRONIC  CIGAR,
 ELECTRONIC  CIGARILLO,  ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER
 SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY  PRODUCT  APPROVED
 BY  THE  UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL
 DEVICE, OR MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF  ARTI-
 CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
   17.  "TOBACCO  AND  VAPOR PRODUCTS MENU" MEANS A BOOKLET, PAMPHLET, OR
 OTHER LISTING OF TOBACCO PRODUCTS, HERBAL  CIGARETTES,  VAPOR  PRODUCTS,
 AND  ELECTRONIC  CIGARETTES OFFERED FOR SALE BY THE DEALER AND THE PRICE
 OF SUCH PRODUCTS. THE  TOBACCO  AND  VAPOR  PRODUCTS  MENU  MAY  CONTAIN
 PICTURES  OF AND ADVERTISEMENTS FOR TOBACCO PRODUCTS, HERBAL CIGARETTES,
 VAPOR PRODUCTS AND ELECTRONIC CIGARETTES.
   18. "MENU COVER PAGE" MEANS THE FRONT COVER OF  A  TOBACCO  AND  VAPOR
 PRODUCTS MENU OR, IF THERE IS NO FRONT COVER, THE FIRST PAGE OF A TOBAC-
 CO AND VAPOR PRODUCTS MENU.
   19.  "CHARACTERIZING  FLAVOR"  MEANS A DISTINGUISHABLE TASTE OR AROMA,
 OTHER THAN THE TASTE OR AROMA OF TOBACCO  OR  MENTHOL,  IMPARTED  EITHER
 PRIOR  TO  OR  DURING CONSUMPTION OF A TOBACCO PRODUCT, ELECTRONIC CIGA-
 RETTES AND VAPOR PRODUCTS  OR  COMPONENT  THEREOF,  INCLUDING,  BUT  NOT
 LIMITED  TO, TASTES OR AROMAS RELATING TO ANY FRUIT, CHOCOLATE, VANILLA,
 HONEY, CANDY, COCOA, DESSERT, ALCOHOLIC BEVERAGE, HERB OR SPICE.
   § 3. Section 1399-bb of the public health law, as amended  by  chapter
 508 of the laws of 2000, the section heading and subdivisions 4 and 5 as
 amended by chapter 4 of the laws of 2018 and subdivision 2 as amended by
 chapter 13 of the laws of 2003, is amended to read as follows:
   § 1399-bb. Distribution of tobacco products, VAPOR PRODUCTS, electron-
 ic  cigarettes or herbal cigarettes without charge. 1. No person engaged
 in the business of selling or otherwise distributing  tobacco  products,
 VAPOR  PRODUCTS,  ELECTRONIC CIGARETTES or herbal cigarettes for commer-
 cial purposes, or any agent or employee of such person, shall knowingly,
 in furtherance of such business:
   (a) distribute without charge any tobacco  products  or  herbal  ciga-
 rettes  to  any  individual, provided that the distribution of a package
 containing tobacco products or herbal cigarettes in  violation  of  this
 subdivision  shall  constitute  a single violation without regard to the
 number of items in the package; or
   (b) distribute [coupons] PRICE REDUCTION INSTRUMENTS which are redeem-
 able for tobacco products [or], herbal cigarettes,  VAPOR  PRODUCTS,  OR
 ELECTRONIC  CIGARETTES to any individual, provided that this subdivision
 shall not apply to coupons contained in newspapers, magazines  or  other
 types  of publications, coupons obtained through the purchase of tobacco
 products [or], herbal cigarettes, VAPOR PRODUCTS,  OR  ELECTRONIC  CIGA-
 RETTES or obtained at locations which sell tobacco products [or], herbal
 cigarettes,  VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES provided that such
 distribution is confined to a designated area or to coupons sent through
 the mail.

 S. 1509--A                         89                         A. 2009--A

   1-A. NO PERSON  ENGAGED  IN  THE  BUSINESS  OF  SELLING  OR  OTHERWISE
 DISTRIBUTING  TOBACCO  PRODUCTS,  HERBAL  CIGARETTES, VAPOR PRODUCTS, OR
 ELECTRONIC CIGARETTES FOR COMMERCIAL PURPOSES, OR ANY AGENT OR  EMPLOYEE
 OF SUCH PERSON, SHALL KNOWINGLY, IN FURTHERANCE OF SUCH BUSINESS:
   (A)  HONOR  OR  ACCEPT A PRICE REDUCTION INSTRUMENT IN ANY TRANSACTION
 RELATED TO THE  SALE  OF  TOBACCO  PRODUCTS,  HERBAL  CIGARETTES,  VAPOR
 PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUMER;
   (B)  SELL OR OFFER FOR SALE TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR
 PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUMER THROUGH ANY MULTI-PACK-
 AGE DISCOUNT OR OTHERWISE PROVIDE TO A CONSUMER  ANY  TOBACCO  PRODUCTS,
 HERBAL  CIGARETTES,  VAPOR PRODUCTS, ELECTRONIC CIGARETTES FOR LESS THAN
 THE LISTED PRICE IN EXCHANGE FOR  THE  PURCHASE  OF  ANY  OTHER  TOBACCO
 PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES BY
 THE CONSUMER;
   (C)  SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE ANY PRODUCT OTHER THAN
 TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGA-
 RETTES TO A CONSUMER FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR  THE
 PURCHASE  OF  TOBACCO  PRODUCTS,  HERBAL  CIGARETTES, VAPOR PRODUCTS, OR
 ELECTRONIC CIGARETTES BY THE CONSUMER; OR
   (D) SELL, OFFER FOR  SALE,  OR  OTHERWISE  PROVIDE  TOBACCO  PRODUCTS,
 HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUM-
 ER FOR LESS THAN THE LISTED PRICE.
   2. The prohibitions contained in subdivision one of this section shall
 not apply to the following locations:
   (a)  private  social functions when seating arrangements are under the
 control of the sponsor of the function  and  not  the  owner,  operator,
 manager or person in charge of such indoor area;
   (b)  conventions  and  trade  shows; provided that the distribution is
 confined to designated areas generally accessible only to  persons  over
 the age of [eighteen] TWENTY-ONE;
   (c)   events  sponsored  by  tobacco  [or],  herbal  cigarette,  VAPOR
 PRODUCTS,  OR  ELECTRONIC  CIGARETTE  manufacturers  provided  that  the
 distribution  is  confined to designated areas generally accessible only
 to persons over the age of [eighteen] TWENTY-ONE;
   (d) bars as defined in subdivision one  of  section  thirteen  hundred
 ninety-nine-n of this chapter;
   (e)  tobacco  businesses  as  defined  in subdivision eight of section
 thirteen hundred ninety-nine-aa of this article;
   (f) factories as defined  in  subdivision  nine  of  section  thirteen
 hundred  ninety-nine-aa of this article and construction sites; provided
 that the distribution is confined to designated areas generally accessi-
 ble only to persons over the age of [eighteen] TWENTY-ONE.
   3.  No  person  shall  distribute  tobacco   products   [or],   herbal
 cigarettes,  VAPOR  PRODUCTS,  OR ELECTRONIC CIGARETTES at the locations
 set forth in paragraphs (b), (c) and (f)  of  subdivision  two  of  this
 section  unless  such  person  gives  five  days  written  notice to the
 enforcement officer.
   4. No person engaged in the business of selling or otherwise  distrib-
 uting  VAPOR  PRODUCTS OR electronic cigarettes for commercial purposes,
 or any agent or employee of such person, shall knowingly, in furtherance
 of such business, distribute without charge any VAPOR PRODUCTS OR  elec-
 tronic cigarettes to any individual under [eighteen] TWENTY-ONE years of
 age.
   5.  The distribution of tobacco products or herbal cigarettes pursuant
 to subdivision two of this section or the distribution without charge of
 VAPOR PRODUCTS OR electronic cigarettes shall be made only to  an  indi-

 S. 1509--A                         90                         A. 2009--A

 vidual who demonstrates, through (A) a driver's license or [other photo-
 graphic] NON-DRIVER'S identification card issued by [a government entity
 or  educational  institution]  THE  COMMISSIONER  OF MOTOR VEHICLES, THE
 FEDERAL   GOVERNMENT,  ANY  UNITED  STATES  TERRITORY,  COMMONWEALTH  OR
 POSSESSION, THE DISTRICT OF COLUMBIA,  A  STATE  GOVERNMENT  WITHIN  THE
 UNITED  STATES  OR A PROVINCIAL GOVERNMENT OF THE DOMINION OF CANADA, OR
 (B) A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR ANY OTHER
 COUNTRY, OR (C) AN IDENTIFICATION CARD ISSUED BY THE ARMED FORCES OF THE
 UNITED STATES, indicating that the individual  is  at  least  [eighteen]
 TWENTY-ONE years of age. Such identification need not be required of any
 individual  who  reasonably  appears to be at least [twenty-five] THIRTY
 years of age; provided, however, that such appearance shall not  consti-
 tute a defense in any proceeding alleging the sale of a tobacco product,
 VAPOR  PRODUCT, electronic cigarette or herbal cigarette or the distrib-
 ution without charge of VAPOR PRODUCTS OR electronic  cigarettes  to  an
 individual UNDER TWENTY-ONE YEARS OF AGE.
   §  4.  The  opening  paragraph of section 1399-cc of the public health
 law, as amended by chapter 542 of the laws of 2014, is amended  to  read
 as follows:
   Sale  of  tobacco products, herbal cigarettes, [liquid nicotine] VAPOR
 PRODUCTS, ELECTRONIC  CIGARETTES,  shisha,  rolling  papers  or  smoking
 paraphernalia to [minors] PERSONS UNDER THE AGE OF TWENTY-ONE IS prohib-
 ited.
   §  5.  Paragraph (e) of subdivision 1 of section 1399-cc of the public
 health law is REPEALED.
   § 6. Subdivisions 2, 3, 4 and 7  of  section  1399-cc  of  the  public
 health  law,  as amended by chapter 542 of the laws of 2014, are amended
 to read as follows:
   2. Any person operating a place of business wherein tobacco  products,
 herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electron-
 ic  cigarettes,  are sold or offered for sale is prohibited from selling
 such products, herbal  cigarettes,  [liquid  nicotine]  VAPOR  PRODUCTS,
 shisha,  electronic  cigarettes  or smoking paraphernalia to individuals
 under [eighteen] TWENTY-ONE years of age, and shall post in a  conspicu-
 ous  place  a  sign  upon  which  there shall be imprinted the following
 statement, "SALE OF CIGARETTES, CIGARS, CHEWING TOBACCO, POWDERED TOBAC-
 CO, SHISHA OR OTHER TOBACCO PRODUCTS, HERBAL CIGARETTES,  [LIQUID  NICO-
 TINE]  VAPOR  PRODUCTS, ELECTRONIC CIGARETTES, ROLLING PAPERS OR SMOKING
 PARAPHERNALIA, TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS  OF  AGE  IS
 PROHIBITED  BY  LAW."  Such sign shall be printed on a white card in red
 letters at least one-half inch in height.
   3. Sale of tobacco  products,  herbal  cigarettes,  [liquid  nicotine]
 VAPOR  PRODUCTS,  shisha  or electronic cigarettes in such places, other
 than by a vending machine, shall be  made  only  to  an  individual  who
 demonstrates, through (a) a valid driver's license or non-driver's iden-
 tification card issued by the commissioner of motor vehicles, the feder-
 al  government, any United States territory, commonwealth or possession,
 the District of Columbia, a state government within the United States or
 a provincial government of the dominion of Canada, or (b) a valid  pass-
 port issued by the United States government or any other country, or (c)
 an  identification card issued by the armed forces of the United States,
 indicating that the individual is at least [eighteen]  TWENTY-ONE  years
 of  age.  Such identification need not be required of any individual who
 reasonably appears to be at least [twenty-five]  THIRTY  years  of  age,
 provided,  however,  that such appearance shall not constitute a defense
 in any proceeding alleging the sale of a tobacco product,  herbal  ciga-

 S. 1509--A                         91                         A. 2009--A
 
 rettes,  [liquid  nicotine]  VAPOR  PRODUCTS, shisha or electronic ciga-
 rettes to an individual under [eighteen] TWENTY-ONE years of age.
   4.  (a)  Any  person  operating  a  place  of business wherein tobacco
 products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or
 electronic cigarettes are sold or offered for sale may perform a  trans-
 action scan as a precondition for such purchases.
   (b)  In  any  instance  where the information deciphered by the trans-
 action scan fails to match  the  information  printed  on  the  driver's
 license  or  non-driver  identification card, or if the transaction scan
 indicates that the information is false  or  fraudulent,  the  attempted
 transaction shall be denied.
   (c)  In  any  proceeding  pursuant to section thirteen hundred ninety-
 nine-ee of this article, it shall be an affirmative  defense  that  such
 person had produced a driver's license or non-driver identification card
 apparently  issued by a governmental entity, successfully completed that
 transaction scan, and that the tobacco  product,  herbal  cigarettes  or
 [liquid  nicotine]  VAPOR  PRODUCTS had been sold, delivered or given to
 such person in reasonable reliance upon such identification  and  trans-
 action scan. In evaluating the applicability of such affirmative defense
 the  commissioner  shall  take  into  consideration  any  written policy
 adopted and implemented by the seller to effectuate  the  provisions  of
 this  chapter.  Use  of  a  transaction scan shall not excuse any person
 operating a place of business wherein  tobacco  products,  herbal  ciga-
 rettes,  [liquid  nicotine]  VAPOR  PRODUCTS, shisha or electronic ciga-
 rettes are sold, or the agent or employee of such person, from the exer-
 cise  of  reasonable  diligence  otherwise  required  by  this  chapter.
 Notwithstanding the above provisions, any such affirmative defense shall
 not  be  applicable in any civil or criminal proceeding, or in any other
 forum.
   7. (A) No  person  operating  a  place  of  business  wherein  tobacco
 products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or
 electronic cigarettes are sold or offered for sale shall sell, permit to
 be  sold, offer for sale or display for sale any tobacco product, herbal
 cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic ciga-
 rettes in any manner, unless such products and cigarettes are stored for
 sale [(a)] (I) behind a counter  in  an  area  accessible  only  to  the
 personnel  of  such  business,  or  [(b)]  (II)  in  a locked container;
 provided, however, such restriction shall not  apply  to  tobacco  busi-
 nesses,  as  defined  in  subdivision  eight of section thirteen hundred
 ninety-nine-aa of this article, and to  places  to  which  admission  is
 restricted to persons [eighteen] TWENTY-ONE years of age or older.
   (B) IN ADDITION TO THE REQUIREMENTS SET FORTH IN PARAGRAPH (A) OF THIS
 SUBDIVISION,  NO DEALER SHALL PERMIT THE DISPLAY OF ANY TOBACCO PRODUCT,
 HERBAL CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC  CIGARETTE  IN  A  MANNER
 THAT  PERMITS A CONSUMER TO VIEW ANY SUCH ITEM PRIOR TO PURCHASE. EXCEPT
 AS PROVIDED FOR IN PARAGRAPH (C) OF THIS SUBDIVISION IS NOT VIOLATED IF:
   (I) AT THE DIRECT REQUEST OF A CUSTOMER AT LEAST TWENTY-ONE  YEARS  OF
 AGE, SUCH A CUSTOMER HANDLES THE ITEM, PACKAGED OR OTHERWISE, TO INSPECT
 THE PRODUCT PRIOR TO PURCHASE; OR
   (II) SUCH ITEMS ARE TEMPORARILY VISIBLE DURING RESTOCKING, THE SALE OF
 SUCH ITEMS, OR THE CARRIAGE OF SUCH ITEMS INTO OR OUT OF THE PREMISES.
   (C) NO DEALER SHALL DISPLAY OR PERMIT THE DISPLAY OF ANY TOBACCO PROD-
 UCT,  HERBAL  CIGARETTE,  VAPOR PRODUCT, OR ELECTRONIC CIGARETTE FOR ANY
 LONGER THAN NECESSARY TO COMPLETE THE PURPOSES  IDENTIFIED  IN  SUBPARA-
 GRAPHS (I) AND (II) OF PARAGRAPH (B) OF THIS SUBDIVISION.

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   (D)  NO  DEALER  SHALL  STORE ANY TOBACCO AND VAPOR PRODUCTS MENU IN A
 LOCATION WHERE IT IS VISIBLE TO CUSTOMERS  OR  ACCESSIBLE  TO  CUSTOMERS
 WITHOUT  THE  ASSISTANCE OF THE DEALER. THE MENU SHALL ALSO CONTAIN MENU
 COVER PAGE THAT SHALL PREVENT THE INADVERTENT VIEWING OF PROMOTIONAL  OR
 OTHER MATERIAL CONTAINED WITHIN THE TOBACCO AND VAPOR PRODUCTS MENU.
   (E) NO DEALER SHALL PROVIDE ANY TOBACCO AND VAPOR PRODUCTS MENU OR ANY
 TOBACCO  PRODUCT,  HERBAL  CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC CIGA-
 RETTE TO ANY INDIVIDUAL WHO HAS NOT DEMONSTRATED, THROUGH IDENTIFICATION
 WHICH MEETS THE REQUIREMENTS OF SUBDIVISION THREE OF THIS SECTION,  THAT
 THE INDIVIDUAL IS AT LEAST TWENTY-ONE YEARS OF AGE.  SUCH IDENTIFICATION
 NEED NOT BE REQUIRED OF ANY INDIVIDUAL WHO REASONABLY APPEARS TO BE OVER
 THE  AGE  OF  THIRTY,  PROVIDED, HOWEVER, THAT SUCH APPEARANCE SHALL NOT
 CONSTITUTE A DEFENSE IN ANY PROCEEDING ALLEGING THE SALE OF SUCH ITEM TO
 AN INDIVIDUAL UNDER TWENTY-ONE YEARS OF AGE. IT SHALL BE AN  AFFIRMATIVE
 DEFENSE  TO  A  VIOLATION OF THIS PARAGRAPH THAT THE DEALER SUCCESSFULLY
 PERFORMED A TRANSACTION SCAN OF AN INDIVIDUAL'S IDENTIFICATION AND  THAT
 A  TOBACCO  AND  VAPOR PRODUCTS MENU, TOBACCO PRODUCT, HERBAL CIGARETTE,
 VAPOR PRODUCT, OR ELECTRONIC CIGARETTE WAS PROVIDED TO  SUCH  INDIVIDUAL
 IN REASONABLE RELIANCE UPON SUCH IDENTIFICATION AND TRANSACTION SCAN.
   (F)  AFTER  A  CUSTOMER  HAS  COMPLETED  VIEWING  A  TOBACCO AND VAPOR
 PRODUCTS MENU, THE DEALER SHALL IMMEDIATELY RETURN THE TOBACCO AND VAPOR
 PRODUCTS MENU TO ITS STORAGE LOCATION.
   (G) UNLESS REQUIRED OTHERWISE BY REGULATION  OF  THE  DEPARTMENT,  THE
 MENU COVER PAGE OF THE TOBACCO AND VAPOR PRODUCTS MENU SHALL BE BLANK OR
 CONTAIN  ONLY  THE WORDS "TOBACCO AND VAPOR PRODUCTS MENU" AND SHALL NOT
 CONTAIN ANY ADVERTISING OR OTHER PROMOTIONAL MATERIAL.
   (H) THE COMMISSIONER MAY ISSUE RULES AND REGULATIONS GOVERNING THE USE
 OF THE TOBACCO AND VAPOR PRODUCTS MENU AND MENU COVER PAGE.
   (I) PARAGRAPHS (A) THROUGH (G) OF THIS SUBDIVISION SHALL NOT APPLY  TO
 A  PLACE  OF BUSINESS TO WHICH ADMISSION IS RESTRICTED SOLELY TO PERSONS
 TWENTY-ONE YEARS OF AGE OR OLDER.
   (J) NOTHING HEREIN SHALL BE CONSTRUED TO RESTRICT THE AUTHORITY OF ANY
 COUNTY, CITY, TOWN, OR VILLAGE TO ENACT, ADOPT, PROMULGATE  AND  ENFORCE
 ADDITIONAL  LOCAL  LAWS, ORDINANCES, REGULATIONS OR OTHER MEASURES WHICH
 ARE IN ADDITION TO OR MORE STRINGENT THAN EITHER OF  THE  PROVISIONS  OF
 THIS ARTICLE.
   §  7.  Section 1399-dd of the public health law, as amended by chapter
 448 of the laws of 2012, is amended to read as follows:
   §  1399-dd.  Sale  of  tobacco  products,  herbal  cigarettes,   VAPOR
 PRODUCTS, or electronic cigarettes in vending machines. No person, firm,
 partnership,  company  or  corporation  shall  operate a vending machine
 which dispenses tobacco products, herbal cigarettes, VAPOR PRODUCTS,  or
 electronic  cigarettes  unless  such machine is located: (a) in a bar as
 defined in subdivision one of section thirteen hundred ninety-nine-n  of
 this  chapter,  or  the  bar area of a food service establishment with a
 valid, on-premises full liquor license; (b) in a private club; (c) in  a
 tobacco  business  as  defined  in subdivision eight of section thirteen
 hundred ninety-nine-aa of this article; or (d) in a place of  employment
 which has an insignificant portion of its regular workforce comprised of
 people  under  the  age  of [eighteen] TWENTY-ONE years and only in such
 locations that are not  accessible  to  the  general  public;  provided,
 however,  that in such locations the vending machine is located in plain
 view and under the direct supervision  and  control  of  the  person  in
 charge of the location or his or her designated agent or employee.
   §  8.  Section 1399-ee of the public health law, as amended by chapter
 162 of the laws of 2002, is amended to read as follows:

 S. 1509--A                         93                         A. 2009--A
 
   § 1399-ee. Hearings; penalties. 1. Hearings with respect to  violation
 of  this  article  shall  be  conducted  in  the same manner as hearings
 conducted under article thirteen-E of this chapter.
   2.  If  the  enforcement  officer  determines  after  a hearing that a
 violation of this article has occurred, he or she shall impose  a  civil
 penalty  of  a  minimum  of three hundred dollars, but not to exceed one
 thousand dollars for a first violation, and a minimum  of  five  hundred
 dollars,  but  not  to exceed one thousand five hundred dollars for each
 subsequent violation, unless a different penalty is  otherwise  provided
 in this article. The enforcement officer shall advise the [retail] deal-
 er  that  upon the accumulation of three or more points pursuant to this
 section the [department] COMMISSIONER  of  taxation  and  finance  shall
 suspend the dealer's registration. If the enforcement officer determines
 after  a  hearing  that  a [retail] dealer was selling tobacco products,
 VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES while  their  registration  was
 suspended  or  permanently revoked pursuant to subdivision three or four
 of this section, he or she shall impose a civil penalty  of  twenty-five
 hundred dollars.
   3.  (a)  Imposition  of points. If the enforcement officer determines,
 after a hearing, that the [retail] dealer violated subdivision [one] TWO
 of section thirteen hundred ninety-nine-cc of this article with  respect
 to a prohibited sale to a [minor] PERSON UNDER THE AGE OF TWENTY-ONE, he
 or  she  shall,  in  addition  to imposing any other penalty required or
 permitted pursuant to this section, assign two points  to  the  [retail]
 dealer's record where the individual who committed the violation did not
 hold  a  certificate  of completion from a state certified tobacco sales
 training program and one point where the  [retail]  dealer  demonstrates
 that  the  person  who  committed  the  violation  held a certificate of
 completion from a state certified tobacco sales training program.
   (b) Revocation. If the enforcement officer determines, after  a  hear-
 ing,  that a [retail] dealer has violated this article four times within
 a three year time frame he or she shall, in  addition  to  imposing  any
 other  penalty required or permitted by this section, direct the commis-
 sioner of taxation and finance to revoke the dealer's  registration  for
 one year.
   (c)  Duration of points. Points assigned to a [retail] dealer's record
 shall be assessed for a period of thirty-six  months  beginning  on  the
 first day of the month following the assignment of points.
   (d)  Reinspection. Any [retail] dealer who is assigned points pursuant
 to paragraph (a) of this subdivision shall be reinspected at  least  two
 times  a  year  by  the  enforcement  officer  until points assessed are
 removed from the [retail] dealer's record.
   (e) Suspension. If the department determines that  a  [retail]  dealer
 has  accumulated  three  points or more, the department shall direct the
 commissioner of taxation and finance to suspend such dealer's  registra-
 tion for six months. The three points serving as the basis for a suspen-
 sion shall be erased upon the completion of the six month penalty.
   (f)  Surcharge.  A  fifty  dollar  surcharge  to be assessed for every
 violation will be made available to enforcement officers  and  shall  be
 used  solely  for compliance checks to be conducted to determine compli-
 ance with this section.
   4. (a) If the enforcement officer determines, after a hearing, that  a
 [retail]  dealer  has violated this article while their registration was
 suspended pursuant to subdivision three  of  this  section,  he  or  she
 shall,  in  addition to imposing any other penalty required or permitted
 by this section, direct the commissioner  of  taxation  and  finance  to

 S. 1509--A                         94                         A. 2009--A
 
 permanently  revoke  the dealer's registration and not permit the dealer
 to obtain a new registration.
   (b)  If  the  enforcement  officer determines, after a hearing, that a
 vending machine operator has violated this article three times within  a
 two  year period, or four or more times cumulatively he or she shall, in
 addition to imposing any other penalty required  or  permitted  by  this
 section,  direct the commissioner of taxation and finance to suspend the
 vendor's registration for one year and not permit the vendor to obtain a
 new registration for such period.
   5. The department shall publish a notification of the name and address
 of any [retailer] DEALER violating the provisions of  this  section  and
 indicate  the  number of times the dealer has violated the provisions of
 this section. The notification shall be  published  in  a  newspaper  of
 general  circulation  in  the locality in which the [retailer] DEALER is
 located.
   6. (a) In any proceeding pursuant to subdivision three of this section
 to assign points to a [retail]  dealer's  record,  the  [retail]  dealer
 shall  be  assigned  one  point instead of two points where the [retail]
 dealer demonstrates that the  person  who  committed  the  violation  of
 section  thirteen  hundred  ninety-nine-cc  of this article held a valid
 certificate of completion from a state certified tobacco sales  training
 program.
   (b)  A  state  certified  tobacco sales training program shall include
 instruction in the following elements:
   (1) the health effects of tobacco use, especially at a young age;
   (2) the legal purchase age and the additional requirements of  section
 thirteen hundred ninety-nine-cc of this article;
   (3) legal forms of identification and the key features thereof;
   (4)  reliance  upon  legal  forms  of  identification and the right to
 refuse sales when acting in good faith;
   (5) means of identifying fraudulent identification of attempted under-
 age purchasers;
   (6) techniques used to refuse a sale;
   (7) the penalties arising out of unlawful sales to  underage  individ-
 uals; and
   (8) the significant disciplinary action or loss of employment that may
 be  imposed by the [retail] dealer for a violation of the law or a devi-
 ation from the policies of the [retail] dealer in respect to  compliance
 with such law.
   (c)  A tobacco sales training program may be given and administered by
 a [retail] dealer duly registered under section four hundred eighty-a of
 the tax law which operates five or more registered locations, by a trade
 association  whose  members  are  registered  as  [retail]  dealers,  by
 national  and  regional franchisors who have granted at least five fran-
 chises in the state to persons who are registered as such [retail] deal-
 ers by a cooperative corporation with  five  or  more  members  who  are
 registered as [retail] dealers and are operating in this state, and by a
 wholesaler  supplying fifty or more [retail] dealers. A person or entity
 administering  such  training  program  shall  issue   certificates   of
 completion  to  persons successfully completing such a training program.
 Such certificates shall be prima facie evidence  of  the  completion  of
 such a training program by the person named therein.
   (d)  A  certificate  of completion may be issued for a period of three
 years, however such certificate shall be  invalidated  by  a  change  in
 employment.

 S. 1509--A                         95                         A. 2009--A
 
   (e)  Entities authorized pursuant to paragraph (c) of this subdivision
 to give and administer a tobacco sales training  program  may  submit  a
 proposed curriculum, a facsimile of any training aids and materials, and
 a list of training locations to the department for review. Training aids
 may  include the use of video, computer based instruction, printed mate-
 rials and other formats deemed acceptable to the department. The depart-
 ment shall certify programs which provide instruction  in  the  elements
 set forth in paragraph (b) of this subdivision in a clear and meaningful
 fashion.  Programs  approved  by the department shall be certified for a
 period of three years at which time an entity may  reapply  for  certif-
 ication.  A  non-refundable  fee  in the amount of three hundred dollars
 shall be paid to the department with each application.
   § 9. Section 1399-hh of the public health law, as added by chapter 433
 of the laws of 1997, is amended to read as follows:
   § 1399-hh. Tobacco VAPOR PRODUCT AND ELECTRONIC CIGARETTE enforcement.
 The commissioner shall  develop,  plan  and  implement  a  comprehensive
 program to reduce the prevalence of tobacco VAPOR PRODUCT AND ELECTRONIC
 CIGARETTE  use,  particularly among persons less than [eighteen] TWENTY-
 ONE years of age. This program shall include, but  not  be  limited  to,
 support for enforcement of article thirteen-F of this chapter.
   1.  An  enforcement  officer,  as  defined in section thirteen hundred
 ninety-nine-t of this chapter, may annually, on such dates as  shall  be
 fixed  by the commissioner, submit an application for such monies as are
 made available for such purpose.  Such application shall be in such form
 as prescribed by the commissioner and shall include, but not be  limited
 to,  plans  regarding random spot checks, including the number and types
 of compliance checks that will be conducted,  and  other  activities  to
 determine compliance with this article.  Each such plan shall include an
 agreement  to  report  to  the  commissioner: the names and addresses of
 [tobacco retailers and vendors] DEALERS determined to be unlicensed,  if
 any;  the  number  of  complaints filed against licensed [tobacco retail
 outlets] DEALERS; and the names of [tobacco retailers and vendors] DEAL-
 ERS who have paid fines,  or  have  been  otherwise  penalized,  due  to
 enforcement actions.
   2.    The commissioner shall distribute such monies as are made avail-
 able for such purpose to enforcement officers and, in so doing, consider
 the number of retail locations registered to sell tobacco products with-
 in the jurisdiction of the enforcement officer and the level of proposed
 activities.
   3. Monies made available to  enforcement  officers  pursuant  to  this
 section  shall  only  be used for local tobacco, HERBAL CIGARETTE, VAPOR
 PRODUCTS AND ELECTRONIC CIGARETTE enforcement activities approved by the
 commissioner.
   § 10. Paragraph (b) of subdivision 2 of section 1399-ll of the  public
 health  law,  as added by chapter 518 of the laws of 2000, is amended to
 read as follows:
   (b) Any person operating a tobacco business wherein bidis is  sold  or
 offered  for  sale  is prohibited from selling such bidis to individuals
 under [eighteen] TWENTY-ONE years of age, and shall post in a  conspicu-
 ous  place  a  sign  upon  which  there shall be imprinted the following
 statement, "SALE OF BIDIS TO PERSONS UNDER [EIGHTEEN]  TWENTY-ONE  YEARS
 OF  AGE  IS  PROHIBITED BY LAW."   Such sign shall be printed on a white
 card in red letters at least one-half inch in height.
   § 11. Subdivision 1 and paragraph (b)  of  subdivision  2  of  section
 1399-mm of the public health law, as added by chapter 549 of the laws of
 2003, are amended to read as follows:

 S. 1509--A                         96                         A. 2009--A
 
   1. No person shall knowingly sell or provide gutka to any other person
 under  [eighteen]  TWENTY-ONE  years  of  age. No other provision of law
 authorizing the sale of tobacco products, other than subdivision two  of
 this  section,  shall  authorize  the  sale  of  gutka.   Any person who
 violates  the provisions of this subdivision shall be subject to a civil
 penalty of not more than five hundred dollars.
   (b) Any person operating a tobacco business wherein gutka is  sold  or
 offered  for  sale  is prohibited from selling such gutka to individuals
 under [eighteen] TWENTY-ONE years of age, and shall post in a  conspicu-
 ous  place  a  sign  upon  which  there shall be imprinted the following
 statement, "SALE OF GUTKA TO PERSONS UNDER [EIGHTEEN]  TWENTY-ONE  YEARS
 OF  AGE  IS  PROHIBITED BY LAW."   Such sign shall be printed on a white
 card in red letters at least one-half inch in height.
   § 12. The public health  law  is  amended  by  adding  a  new  section
 1399-mm-1 to read as follows:
   §  1399-MM-1.  SALE  IN  PHARMACIES. NO TOBACCO PRODUCTS, HERBAL CIGA-
 RETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES  SHALL  BE  SOLD  IN  A
 PHARMACY  OR IN A RETAIL ESTABLISHMENT THAT CONTAINS A PHARMACY OPERATED
 AS A DEPARTMENT AS DEFINED IN PARAGRAPH F OF SUBDIVISION TWO OF  SECTION
 SIXTY-EIGHT HUNDRED EIGHT OF THE EDUCATION LAW.
   §  13.  The  public  health  law  is  amended  by adding a new section
 1399-mm-2 to read as follows:
   § 1399-MM-2. ELECTRONIC CIGARETTE AND VAPOR  PRODUCTS;  CHARACTERIZING
 FLAVORS.  THE  COMMISSIONER  IS  AUTHORIZED  TO  PROMULGATE  REGULATIONS
 GOVERNING THE SALE AND DISTRIBUTION OF ELECTRONIC  CIGARETTES  OR  VAPOR
 PRODUCTS.   SUCH REGULATIONS MAY, TO THE EXTENT DEEMED NECESSARY FOR THE
 PROTECTION OF PUBLIC HEALTH, PROHIBIT  OR  RESTRICT:  (I)  THE  SELLING,
 OFFERING  FOR SALE, POSSESSING WITH INTENT TO SELL OR OFFERING FOR SALE,
 OR DISTRIBUTING OF REFILLS, CARTRIDGES, OR OTHER COMPONENTS OF ELECTRON-
 IC CIGARETTES OR VAPOR PRODUCTS THAT IMPARTS A CHARACTERIZING FLAVOR; OR
 (II) THE USE OF TRADEMARKS,  NAMES  OR  DESCRIPTIONS  OF  CHARACTERIZING
 FLAVORS THAT ARE CLEARLY INTENDED TO APPEAL TO MINORS.
   §  14.  Paragraph  n  of subdivision 1 of section 1399-o of the public
 health law, as amended by chapter 335 of the laws of 2017, is amended to
 read as follows:
   n. general hospitals and residential health care facilities as defined
 in article twenty-eight  of  this  chapter,  HOSPITALS  AND  RESIDENTIAL
 FACILITIES LICENSED BY OR OPERATED BY THE OFFICE OF MENTAL HEALTH PURSU-
 ANT TO THE MENTAL HYGIENE LAW, and other health care facilities licensed
 by  the  state  in  which  persons  reside;  provided, however, that the
 provisions of this subdivision shall not prohibit smoking  [and  vaping]
 by patients in separate enclosed rooms of residential health care facil-
 ities, adult care facilities established or certified under title two of
 article seven of the social services law, [community mental health resi-
 dences  established  under  section 41.44 of the mental hygiene law,] or
 facilities where day treatment programs are provided, which  are  desig-
 nated  as  smoking [and vaping] rooms for patients of such facilities or
 programs;
   § 15. Subdivision 2 of section 1399-o of  the  public  health  law  is
 amended by adding a new paragraph c to read as follows:
   C.  ON  THE GROUNDS OF HOSPITALS LICENSED BY OR OPERATED BY THE OFFICE
 OF MENTAL HEALTH PURSUANT TO THE MENTAL HYGIENE LAW.
   § 16. Section 399-gg of the general business law, as added by  chapter
 542 of the laws of 2014, is amended to read as follows:
   §  399-gg.  Packaging  of  [electronic  liquid]  VAPOR PRODUCTS. 1. No
 person, firm or corporation shall sell or offer for sale any [electronic

 S. 1509--A                         97                         A. 2009--A

 liquid] VAPOR PRODUCTS, as defined in  [paragraph  (e)  of]  subdivision
 [one]  SIXTEEN  of  section  [thirteen  hundred ninety-nine-cc] THIRTEEN
 HUNDRED NINETY-NINE-AA of the public health law, unless the  [electronic
 liquid]  VAPOR PRODUCTS is sold or offered for sale in a child resistant
 bottle which is designed to prevent accidental exposure of  children  to
 [electronic liquids] VAPOR PRODUCTS.
   2. Any violation of this section shall be punishable by a civil penal-
 ty not to exceed one thousand dollars.
   §  17.  The tax law is amended by adding a new article 28-C to read as
 follows:
 
                               ARTICLE 28-C
                    SUPPLEMENTAL TAX ON VAPOR PRODUCTS
 
 SECTION 1180. DEFINITIONS.
         1181. IMPOSITION OF TAX.
         1182. IMPOSITION OF COMPENSATING USE TAX.
         1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL.
         1184. ADMINISTRATIVE PROVISIONS.
         1185. CRIMINAL PENALTIES.
         1186. DEPOSIT AND DISPOSITION OF REVENUE.
   § 1180. DEFINITIONS. FOR THE PURPOSES OF THE  TAXES  IMPOSED  BY  THIS
 ARTICLE, THE FOLLOWING TERMS SHALL MEAN:
   (A) "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS
 OF  THE  PRESENCE  OF  NICOTINE  THEREIN,  THAT  IS MANUFACTURED IN TO A
 FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE,  ELECTRONIC  CIGAR,
 ELECTRONIC  CIGARILLO,  ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER
 SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY  PRODUCT  APPROVED
 BY  THE  UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL
 DEVICE, OR MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF  ARTI-
 CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
   (B) "VAPOR PRODUCTS DEALER" MEANS A PERSON LICENSED BY THE COMMISSION-
 ER TO SELL VAPOR PRODUCTS IN THIS STATE.
   §  1181.  IMPOSITION  OF  TAX. IN ADDITION TO ANY OTHER TAX IMPOSED BY
 THIS CHAPTER OR OTHER LAW, THERE IS  HEREBY  IMPOSED  A  TAX  OF  TWENTY
 PERCENT  ON RECEIPTS FROM THE RETAIL SALE OF VAPOR PRODUCTS SOLD IN THIS
 STATE. THE TAX IS IMPOSED ON THE PURCHASER AND COLLECTED  BY  THE  VAPOR
 PRODUCTS  DEALER AS DEFINED IN SUBDIVISION (B) OF SECTION ELEVEN HUNDRED
 EIGHTY OF THIS ARTICLE, IN TRUST FOR AND ON ACCOUNT OF THE STATE.
   § 1182. IMPOSITION OF COMPENSATING USE TAX. (A) EXCEPT TO  THE  EXTENT
 THAT  VAPOR  PRODUCTS  HAVE  ALREADY  BEEN OR WILL BE SUBJECT TO THE TAX
 IMPOSED BY SECTION ELEVEN HUNDRED EIGHTY-ONE OF  THIS  ARTICLE,  OR  ARE
 OTHERWISE  EXEMPT  UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED A USE TAX
 ON EVERY USE WITHIN THE  STATE  OF  VAPOR  PRODUCTS:  (1)  PURCHASED  AT
 RETAIL;  AND  (2)  MANUFACTURED OR PROCESSED BY THE USER IF ITEMS OF THE
 SAME KIND ARE SOLD BY HIM OR HER IN THE REGULAR COURSE  OF  HIS  OR  HER
 BUSINESS.
   (B)  FOR PURPOSES OF PARAGRAPH ONE OF SUBDIVISION (A) OF THIS SECTION,
 THE TAX SHALL BE AT THE RATE OF  TWENTY  PERCENT  OF  THE  CONSIDERATION
 GIVEN  OR  CONTRACTED  TO  BE  GIVEN FOR SUCH VAPOR PRODUCT PURCHASED AT
 RETAIL. FOR PURPOSES  OF  PARAGRAPH  TWO  OF  SUBDIVISION  (A)  OF  THIS
 SECTION,  THE TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE PRICE AT
 WHICH SUCH ITEMS OF THE SAME KIND OF VAPOR PRODUCT ARE OFFERED FOR  SALE
 BY THE USER, AND THE MERE STORAGE, KEEPING, RETENTION OR WITHDRAWAL FROM
 STORAGE  OF  SUCH VAPOR PRODUCT BY THE PERSON THAT MANUFACTURED OR PROC-

 S. 1509--A                         98                         A. 2009--A
 
 ESSED SUCH VAPOR PRODUCT SHALL NOT BE DEEMED A TAXABLE  USE  BY  HIM  OR
 HER.
   (C) THE TAX DUE PURSUANT TO THIS SECTION SHALL BE PAID AND REPORTED NO
 LATER  THAN  TWENTY  DAYS  AFTER  SUCH  USE  ON A FORM PRESCRIBED BY THE
 COMMISSIONER.
   § 1183. VAPOR PRODUCTS DEALER  REGISTRATION  AND  RENEWAL.  (A)  EVERY
 PERSON  WHO  INTENDS  TO  SELL VAPOR PRODUCTS IN THIS STATE MUST RECEIVE
 FROM THE COMMISSIONER A CERTIFICATE OF REGISTRATION PRIOR TO ENGAGING IN
 BUSINESS. SUCH PERSON MUST ELECTRONICALLY SUBMIT  A  PROPERLY  COMPLETED
 APPLICATION FOR A CERTIFICATE OF REGISTRATION FOR EACH LOCATION AT WHICH
 VAPOR  PRODUCTS  WILL BE SOLD IN THIS STATE, ON A FORM PRESCRIBED BY THE
 COMMISSIONER, AND SHALL BE ACCOMPANIED BY A  NON-REFUNDABLE  APPLICATION
 FEE OF THREE HUNDRED DOLLARS.
    (B)  A  VAPOR  PRODUCTS  DEALER  CERTIFICATE OF REGISTRATION SHALL BE
 VALID FOR THE CALENDAR YEAR  FOR  WHICH  IT  IS  ISSUED  UNLESS  EARLIER
 SUSPENDED  OR  REVOKED.  UPON  THE  EXPIRATION OF THE TERM STATED ON THE
 CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE SHALL BE NULL AND VOID.  A
 CERTIFICATE  OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE AND
 SHALL BE DESTROYED IMMEDIATELY UPON THE VAPOR PRODUCTS DEALER CEASING TO
 DO BUSINESS AS SPECIFIED IN SUCH CERTIFICATE OR IN THE EVENT  THAT  SUCH
 BUSINESS NEVER COMMENCED.
   (C) EVERY VAPOR PRODUCT DEALER SHALL PUBLICLY DISPLAY A VAPOR PRODUCTS
 DEALER  CERTIFICATE  OF  REGISTRATION  IN EACH PLACE OF BUSINESS IN THIS
 STATE WHERE VAPOR PRODUCTS ARE SOLD AT RETAIL. A VAPOR  PRODUCTS  DEALER
 WHO  HAS  NO REGULAR PLACE OF BUSINESS SHALL PUBLICLY DISPLAY SUCH VALID
 CERTIFICATE ON EACH OF ITS CARTS, STANDS, TRUCKS OR OTHER  MERCHANDISING
 DEVICES THROUGH WHICH IT SELLS VAPOR PRODUCTS.
   (D) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS-
 TRATION  TO  ANY  APPLICANT  WHO DOES NOT POSSESS A VALID CERTIFICATE OF
 AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER.   IN
 ADDITION,  THE  COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGIS-
 TRATION, OR SUSPEND, CANCEL OR  REVOKE  A  CERTIFICATE  OF  REGISTRATION
 ISSUED  TO  ANY PERSON WHO: (A) HAS A PAST-DUE LIABILITY AS THAT TERM IS
 DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS  CHAPTER;  (B)  HAS
 HAD  A  CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE OR ANY LICENSE OR
 REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN ONE  YEAR  FROM
 THE DATE ON WHICH SUCH APPLICATION WAS FILED; (C) HAS  BEEN CONVICTED OF
 A  CRIME  PROVIDED  FOR IN THIS CHAPTER WITHIN ONE YEAR FROM THE DATE ON
 WHICH SUCH APPLICATION WAS FILED; (D) WILLFULLY FAILS TO FILE  A  REPORT
 OR  RETURN  REQUIRED  BY THIS ARTICLE; (E) WILLFULLY FILES, CAUSES TO BE
 FILED, GIVES OR CAUSES TO BE GIVEN  A  REPORT,  RETURN,  CERTIFICATE  OR
 AFFIDAVIT  REQUIRED  BY THIS ARTICLE WHICH IS FALSE; (F) WILLFULLY FAILS
 TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS
 ARTICLE; OR (G) WHOSE PLACE OF BUSINESS IS AT THE SAME PREMISES AS  THAT
 OF  A  PERSON  WHOSE VAPOR PRODUCTS DEALER REGISTRATION HAS BEEN REVOKED
 AND WHERE SUCH REVOCATION IS STILL IN EFFECT, UNLESS  THE  APPLICANT  OR
 VAPOR PRODUCTS DEALER PROVIDES THE COMMISSIONER WITH ADEQUATE DOCUMENTA-
 TION DEMONSTRATING THAT SUCH APPLICANT OR VAPOR PRODUCTS DEALER ACQUIRED
 THE  PREMISES OR BUSINESS THROUGH AN ARM'S LENGTH TRANSACTION AS DEFINED
 IN PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-A  OF
 THIS CHAPTER.
   (2)  IN  ADDITION  TO  THE  GROUNDS  PROVIDED IN PARAGRAPH ONE OF THIS
 SUBDIVISION, THE COMMISSIONER SHALL REFUSE TO  ISSUE  A  CERTIFICATE  OF
 REGISTRATION  AND  SHALL CANCEL OR SUSPEND A CERTIFICATE OF REGISTRATION
 AS DIRECTED BY AN ENFORCEMENT OFFICER PURSUANT TO ARTICLE THIRTEEN-F  OF
 THE  PUBLIC  HEALTH  LAW.  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE

 S. 1509--A                         99                         A. 2009--A
 
 CONTRARY, AN APPLICANT WHOSE APPLICATION FOR A CERTIFICATE OF  REGISTRA-
 TION  IS  REFUSED  OR  A  VAPOR  PRODUCTS  DEALER  WHOSE REGISTRATION IS
 CANCELLED OR SUSPENDED UNDER THIS PARAGRAPH SHALL HAVE  NO  RIGHT  TO  A
 HEARING  UNDER  THIS CHAPTER AND SHALL HAVE NO RIGHT TO COMMENCE A COURT
 ACTION OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE  COMMIS-
 SIONER  WITH  RESPECT  TO  SUCH  REFUSAL,  SUSPENSION  OR  CANCELLATION;
 PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL  BE  CONSTRUED  TO  DENY  A
 VAPOR  PRODUCTS  DEALER A HEARING UNDER ARTICLE THIRTEEN-F OF THE PUBLIC
 HEALTH LAW OR TO PROHIBIT VAPOR PRODUCTS DEALERS FROM COMMENCING A COURT
 ACTION OR PROCEEDING  AGAINST  AN  ENFORCEMENT  OFFICER  AS  DEFINED  IN
 SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC HEALTH LAW.
   (E)  IF A VAPOR PRODUCTS DEALER IS SUSPENDED, CANCELLED OR REVOKED AND
 SUCH VAPOR PRODUCTS DEALER SELLS VAPOR PRODUCTS THROUGH  MORE  THAN  ONE
 PLACE OF BUSINESS IN THIS STATE, THE VAPOR PRODUCTS DEALER'S CERTIFICATE
 OF  REGISTRATION ISSUED TO THAT PLACE OF BUSINESS, CART, STAND, TRUCK OR
 OTHER MERCHANDISING DEVICE, WHERE  SUCH  VIOLATION  OCCURRED,  SHALL  BE
 SUSPENDED,  REVOKED  OR  CANCELLED.  PROVIDED,  HOWEVER,  UPON  A  VAPOR
 PRODUCTS DEALER'S THIRD SUSPENSION, CANCELLATION OR REVOCATION WITHIN  A
 FIVE-YEAR PERIOD FOR ANY ONE OR MORE BUSINESSES OWNED OR OPERATED BY THE
 VAPOR  PRODUCTS  DEALER, SUCH SUSPENSION, CANCELLATION, OR REVOCATION OF
 THE VAPOR PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION SHALL  APPLY  TO
 ALL  PLACES  OF  BUSINESS  WHERE  HE OR SHE SELLS VAPOR PRODUCTS IN THIS
 STATE.
   (F) EVERY HOLDER OF A CERTIFICATE  OF  REGISTRATION  MUST  NOTIFY  THE
 COMMISSIONER  OF CHANGES TO ANY OF THE INFORMATION STATED ON THE CERTIF-
 ICATE OR CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR THE
 CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR BEFORE
 THE LAST DAY OF THE MONTH IN WHICH A CHANGE  OCCURS  AND  MUST  BE  MADE
 ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.
   (G)  EVERY  VAPOR PRODUCTS DEALER WHO HOLDS A CERTIFICATE OF REGISTRA-
 TION UNDER THIS ARTICLE SHALL BE REQUIRED TO REAPPLY FOR  A  CERTIFICATE
 OF REGISTRATION FOR THE FOLLOWING CALENDAR YEAR ON OR BEFORE THE TWENTI-
 ETH DAY OF SEPTEMBER AND SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME
 REQUIREMENTS  AND  CONDITIONS,  INCLUDING  GROUNDS  FOR  REFUSAL,  AS AN
 INITIAL REGISTRATION UNDER THIS ARTICLE, INCLUDING BUT  NOT  LIMITED  TO
 THE  PAYMENT OF THE THREE HUNDRED DOLLAR APPLICATION FEE FOR EACH RETAIL
 LOCATION.
   (H) IN ADDITION TO ANY OTHER PENALTY  IMPOSED  BY  THIS  CHAPTER,  ANY
 VAPOR  PRODUCTS  DEALER WHO VIOLATES THE PROVISIONS OF THIS SECTION, (1)
 FOR A FIRST VIOLATION IS LIABLE FOR A CIVIL  FINE  NOT  LESS  THAN  FIVE
 THOUSAND DOLLARS BUT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND SUCH
 CERTIFICATE  OF  REGISTRATION  MAY BE SUSPENDED FOR A PERIOD OF NOT MORE
 THAN SIX MONTHS; AND (2) FOR A SECOND  OR  SUBSEQUENT  VIOLATION  WITHIN
 THREE YEARS FOLLOWING A PRIOR VIOLATION OF THIS SECTION, IS LIABLE FOR A
 CIVIL  FINE NOT LESS THAN TEN THOUSAND DOLLARS BUT NOT TO EXCEED THIRTY-
 FIVE THOUSAND DOLLARS  AND  SUCH  CERTIFICATE  OF  REGISTRATION  MAY  BE
 SUSPENDED  FOR  A  PERIOD OF UP TO THIRTY-SIX MONTHS; OR (3) FOR A THIRD
 VIOLATION WITHIN A PERIOD OF FIVE YEARS, ITS VAPOR PRODUCTS  CERTIFICATE
 OR  CERTIFICATES  OF REGISTRATION ISSUED TO EACH PLACE OF BUSINESS OWNED
 OR OPERATED BY THE VAPOR PRODUCTS DEALER IN THIS STATE, SHALL BE REVOKED
 FOR A PERIOD OF UP TO FIVE YEARS.
   § 1184. ADMINISTRATIVE PROVISIONS. (A) EXCEPT  AS  OTHERWISE  PROVIDED
 FOR IN THIS ARTICLE, THE TAXES IMPOSED BY THIS ARTICLE SHALL BE ADMINIS-
 TERED  AND  COLLECTED  IN  A  LIKE  MANNER AS AND JOINTLY WITH THE TAXES
 IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN  OF  THIS
 CHAPTER.  IN ADDITION, EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, ALL

 S. 1509--A                         100                        A. 2009--A
 
 OF THE PROVISIONS  OF  ARTICLE  TWENTY-EIGHT  OF  THIS  CHAPTER  (EXCEPT
 SECTIONS  ELEVEN  HUNDRED  SEVEN,  ELEVEN  HUNDRED EIGHT, ELEVEN HUNDRED
 NINE, AND ELEVEN HUNDRED FORTY-EIGHT) RELATING TO OR APPLICABLE  TO  THE
 ADMINISTRATION,  COLLECTION  AND  REVIEW  OF  THE  TAXES IMPOSED BY SUCH
 SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN, INCLUDING, BUT  NOT
 LIMITED TO, THE PROVISIONS RELATING TO DEFINITIONS, RETURNS, EXEMPTIONS,
 PENALTIES,  TAX  SECRECY, PERSONAL LIABILITY FOR THE TAX, AND COLLECTION
 OF TAX FROM THE CUSTOMER, SHALL APPLY TO THE TAXES IMPOSED BY THIS ARTI-
 CLE SO FAR AS SUCH PROVISIONS  CAN  BE  MADE  APPLICABLE  TO  THE  TAXES
 IMPOSED BY THIS ARTICLE WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTI-
 CLE  AND  SUCH  MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH
 LANGUAGE TO THE TAXES SO IMPOSED. SUCH PROVISIONS SHALL APPLY  WITH  THE
 SAME  FORCE  AND  EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN
 SET FORTH IN FULL  IN  THIS  ARTICLE  EXCEPT  TO  THE  EXTENT  THAT  ANY
 PROVISION  IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS
 NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE.
   (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
 THE EXEMPTIONS PROVIDED IN PARAGRAPH TEN OF SUBDIVISION (A)  OF  SECTION
 ELEVEN  HUNDRED  FIFTEEN  OF THIS CHAPTER, AND THE PROVISIONS OF SECTION
 ELEVEN HUNDRED SIXTEEN, EXCEPT THOSE PROVIDED IN  PARAGRAPHS  ONE,  TWO,
 THREE AND SIX OF SUBDIVISION (A) OF SUCH SECTION, SHALL NOT APPLY TO THE
 TAXES IMPOSED BY THIS ARTICLE.
   (C)  NOTWITHSTANDING  THE PROVISIONS OF THIS SECTION OR SECTION ELEVEN
 HUNDRED FORTY-SIX OF THIS CHAPTER, THE  COMMISSIONER MAY, IN HIS OR  HER
 DISCRETION,  PERMIT  THE COMMISSIONER OF HEALTH OR HIS OR HER AUTHORIZED
 REPRESENTATIVE TO INSPECT ANY RETURN RELATED TO THE TAX IMPOSED BY  THIS
 ARTICLE  AND  MAY FURNISH TO THE  COMMISSIONER OF HEALTH ANY SUCH RETURN
 OR SUPPLY HIM OR HER WITH INFORMATION CONCERNING AN ITEM   CONTAINED  IN
 ANY  SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF A LIABILITY UNDER
 THIS ARTICLE.
   § 1185. CRIMINAL PENALTIES. THE CRIMINAL PENALTIES IN  SECTIONS  EIGH-
 TEEN  HUNDRED  ONE THROUGH EIGHTEEN   HUNDRED SEVEN AND EIGHTEEN HUNDRED
 SEVENTEEN OF THIS CHAPTER SHALL APPLY TO  THIS  ARTICLE  WITH  THE  SAME
 FORCE  AND  EFFECT  AS  IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET
 FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS
 EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT  RELEVANT
 TO THE TAXES IMPOSED BY THIS ARTICLE.
   §  1186.  DEPOSIT AND DISPOSITION OF REVENUE. THE TAXES, INTEREST, AND
 PENALTIES IMPOSED BY THIS ARTICLE  AND  COLLECTED  OR  RECEIVED  BY  THE
 COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK-
 ING  HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER,
 TO THE CREDIT OF THE COMPTROLLER IN TRUST FOR THE  TOBACCO  CONTROL  AND
 INSURANCE  INITIATIVES  POOL ESTABLISHED BY SECTION NINETY-TWO-DD OF THE
 STATE FINANCE LAW AND DISTRIBUTED  BY  THE  COMMISSIONER  OF  HEALTH  IN
 ACCORDANCE  WITH  SECTION  TWENTY-EIGHT  HUNDRED  SEVEN-V  OF THE PUBLIC
 HEALTH LAW. SUCH DEPOSITS WILL BE KEPT SEPARATE AND APART FROM ALL OTHER
 MONEY IN THE  POSSESSION  OF  THE  COMPTROLLER.  THE  COMPTROLLER  SHALL
 REQUIRE  ADEQUATE  SECURITY  FROM  ALL SUCH DEPOSITORIES.   OF THE TOTAL
 REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER  SHALL
 RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
 REFUNDS  UNDER  THIS ARTICLE. PROVIDED, HOWEVER THAT THE COMMISSIONER IS
 AUTHORIZED AND DIRECTED TO DEDUCT FROM THE AMOUNTS HE  OR  SHE  RECEIVES
 FROM  THE REGISTRATION FEES UNDER SECTION ELEVEN HUNDRED EIGHTY-THREE OF
 THIS ARTICLE, BEFORE DEPOSIT INTO  THE  TOBACCO  CONTROL  AND  INSURANCE
 INITIATIVES POOL, A REASONABLE AMOUNT NECESSARY TO EFFECTUATE REFUNDS OF
 APPROPRIATIONS  OF  THE  DEPARTMENT  TO REIMBURSE THE DEPARTMENT FOR THE

 S. 1509--A                         101                        A. 2009--A
 
 COSTS INCURRED TO ADMINISTER, COLLECT AND DISTRIBUTE THE  TAXES  IMPOSED
 BY THIS ARTICLE.
   §  18.  Subsection  (a)  of section 92-dd of the state finance law, as
 amended by section 3 of part T of chapter 61 of the  laws  of  2011,  is
 amended to read as follows:
   (a)  On  and  after  April  first,  two thousand five, such fund shall
 consist of the revenues heretofore and hereafter collected  or  required
 to  be  deposited  pursuant  to paragraph (a) of subdivision eighteen of
 section twenty-eight hundred seven-c, and sections twenty-eight  hundred
 seven-j,  twenty-eight  hundred seven-s and twenty-eight hundred seven-t
 of the public health law, subdivision (b) of section four hundred eight-
 y-two AND SECTION ELEVEN HUNDRED EIGHTY-SIX of the tax law and  required
 to  be  credited  to the tobacco control and insurance initiatives pool,
 subparagraph (O) of paragraph four of subsection  (j)  of  section  four
 thousand three hundred one of the insurance law, section twenty-seven of
 part  A  of  chapter  one  of the laws of two thousand two and all other
 moneys credited or transferred thereto from any  other  fund  or  source
 pursuant to law.
   §  19. Severability clause. If any clause, sentence, paragraph, subdi-
 vision, section or part of this act shall be adjudged by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  20.  This  act  shall  take effect on the one hundred eightieth day
 after it shall have become a law; provided, however that section  seven-
 teen of this act shall take effect on the first day of a quarterly peri-
 od  described  in  subdivision  (b)  of section 1136 of the tax law next
 commencing at least one hundred eighty days after this act shall  become
 a  law,  and shall apply to sales and uses of vapor products on or after
 such date.
 
                                  PART VV
 
   Section 1. This act shall be known and may be cited as  the  "Cannabis
 Regulation and Taxation Act".
   §  2.  A new chapter 7-A of the consolidated laws is added, to read as
 follows:
 
                   CHAPTER 7-A OF THE CONSOLIDATED LAWS
                               CANNABIS LAW
                                 ARTICLE 1
           SHORT TITLE; POLICY OF STATE AND PURPOSE OF CHAPTER;
                                DEFINITIONS
 
 Section 1. Short title.
         2. Policy of state and purpose of chapter.
         3. Definitions.
 
   § 1. Short Title.  This chapter shall be known and may  be  cited  and
 referred to as the "cannabis law".
   § 2. Policy of state and purpose of chapter.  It is hereby declared as
 policy  of  the state of New York that it is necessary to properly regu-

 S. 1509--A                         102                        A. 2009--A
 
 late and control the cultivation,  processing,  manufacture,  wholesale,
 and  retail production, distribution, transportation, and sale of canna-
 bis, cannabis products, medical cannabis, and hemp cannabis  within  the
 state  of  New York, for the purposes of fostering and promoting temper-
 ance in their consumption, to properly protect the public health,  safe-
 ty,  and  welfare, and to promote social equality. It is hereby declared
 that such policy will best be carried out by empowering the state office
 of cannabis management and its executive director, to determine  whether
 public  convenience  and  advantage  will be promoted by the issuance of
 registrations,  licenses  and/or  permits  granting  the  privilege   to
 produce,  distribute,  transport,  sell, or traffic in cannabis, medical
 cannabis, or hemp cannabis, to increase or decrease in the number there-
 of and the location  of  premises  registered,  licensed,  or  permitted
 thereby,  subject  only  to  the  right  of  judicial review hereinafter
 provided for. It is the purpose of this chapter to carry out that policy
 in the public interest. The restrictions,  regulations,  and  provisions
 contained  in  this  chapter  are  enacted  by  the  legislature for the
 protection of the health, safety, and  welfare  of  the  people  of  the
 state.
   §  3.  Definitions.    Whenever used in this chapter, unless otherwise
 expressly stated or unless the context  or  subject  matter  requires  a
 different  meaning,  the  following  terms shall have the representative
 meanings hereinafter set forth or indicated:
   1. "Applicant" means a for-profit entity or not-for-profit corporation
 and includes: board members, officers, managers, owners, partners, prin-
 cipal stakeholders and members who submit an  application  to  become  a
 registered organization, licensee or permittee.
   2. "Bona fide cannabis retailer association" shall mean an association
 of  retailers  holding  licenses under this chapter, organized under the
 non-profit or not-for-profit laws of this state.
   3. "Cannabis" means all parts of the  plant  of  the  genus  cannabis,
 whether  growing or not; the seeds thereof; the resin extracted from any
 part of the plant; and every compound,  manufacture,  salt,  derivative,
 mixture, or preparation of the plant, its seeds or resin.
   4.  "Concentrated  cannabis"  means:  (a) the separated resin, whether
 crude or purified, obtained from a plant of the genus cannabis; or (b) a
 material,  preparation,  mixture,  compound  or  other  substance  which
 contains more than three percent by weight of delta-9 tetrahydrocannabi-
 nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
 tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
 system.
   5.  "Cannabis  consumer"  means  a  person, twenty-one years of age or
 older, who purchases cannabis or cannabis products for personal  use  by
 persons twenty-one years of age or older, but not for resale to others.
   6.  "Adult-use  cannabis  processor"  means  a  person licensed by the
 office to purchase cannabis  and  concentrated  cannabis  from  cannabis
 cultivators,  to  process  cannabis, concentrated cannabis, and cannabis
 infused products, package and label cannabis, concentrated cannabis  and
 cannabis infused products for sale in retail outlets, and sell cannabis,
 concentrated  cannabis  and  cannabis  infused  products at wholesale to
 licensed adult-use cannabis distributors.
   7. "Cannabis product" or "adult-use cannabis" means cannabis,  concen-
 trated  cannabis,  and  cannabis-infused  products for use by a cannabis
 consumer.
   8. "Adult-use cannabis retail dispenser" means a  person  licensed  by
 the  executive director to purchase cannabis, concentrated cannabis, and

 S. 1509--A                         103                        A. 2009--A
 
 cannabis-infused products from cannabis processors and cannabis distrib-
 utors, and sell cannabis,  concentrated  cannabis  and  cannabis-infused
 products in a retail outlet.
   9.  "Certified medical use" means the acquisition, possession, use, or
 transportation of medical cannabis by a certified patient, or the acqui-
 sition,  possession,  delivery,  transportation  or  administration   of
 medical  cannabis  by  a  designated  caregiver  or designated caregiver
 facility, for use as part of the  treatment  of  the  patient's  serious
 condition, as authorized in a certification under this chapter including
 enabling the patient to tolerate treatment for the serious condition.
   10.  "Caring for" means treating a patient, in the course of which the
 practitioner has completed a full assessment of  the  patient's  medical
 history and current medical condition.
   11.  "Certified patient" means a patient who is a resident of New York
 state or receiving care and treatment in New York state as determined by
 the executive director in regulation, and  is  certified  under  section
 thirty of this chapter.
   12. "Certification" means a certification, made under this chapter.
   13.  "Cultivation"  shall  include,  the  planting,  growing, cloning,
 harvesting, drying, curing, grading and trimming of  cannabis,  or  such
 other  cultivation  related  processes  as  determined  by the executive
 director in regulation.
   14. "Executive director" means the executive director of the office of
 cannabis management.
   15. "Convicted" and "conviction" include and mean a finding  of  guilt
 resulting  from  a plea of guilty, the decision of a court or magistrate
 or the verdict of a jury, irrespective of the pronouncement of  judgment
 or the suspension thereof.
   16.  "Designated caregiver" means an individual designated by a certi-
 fied patient in a registry application. A certified patient  may  desig-
 nate up to five designated caregivers.
   17.  "Designated caregiver facility" means a general hospital or resi-
 dential health care facility operating pursuant to article  twenty-eight
 of  the  public health law; an adult care facility operating pursuant to
 title two of article seven of  the  social  services  law;  a  community
 mental  health  residence  established  pursuant to section 41.44 of the
 mental hygiene Law; a hospital operating pursuant to section 7.17 of the
 mental hygiene law; a mental  hygiene  facility  operating  pursuant  to
 article  thirty-one  of the mental hygiene law; an inpatient or residen-
 tial treatment program certified pursuant to article thirty-two  of  the
 mental hygiene law; a residential facility for the care and treatment of
 persons  with  developmental  disabilities operating pursuant to article
 sixteen of the mental hygiene law; a residential treatment facility  for
 children  and  youth  operating  pursuant  to  article thirty-one of the
 mental hygiene law; a private or  public  school;  research  institution
 with  an  internal  review board; or any other facility as determined by
 the executive director in regulation; that registers with the office  of
 cannabis  management  to  assist one or more certified patients with the
 acquisition, possession, delivery, transportation or  administration  of
 medical cannabis.
   18.  "Felony"  means any criminal offense classified as a felony under
 the laws of this state or any criminal offense committed  in  any  other
 state,  district,  or territory of the United States and classified as a
 felony therein which if committed within this state, would constitute  a
 felony in this state.

 S. 1509--A                         104                        A. 2009--A
 
   19.  "Form  of  medical cannabis" means characteristics of the medical
 cannabis recommended or limited  for  a  particular  certified  patient,
 including  the method of consumption and any particular strain, variety,
 and quantity or percentage of cannabis or particular active ingredient.
   20.  "Government  agency"  means  any office, division, board, bureau,
 commission, office, agency, authority or public corporation of the state
 or federal government or a county,  city,  town  or  village  government
 within the state.
   21.  "Industrial hemp" means the plant Cannabis sativa L. and any part
 of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
 extracts,  cannabinoids,  isomers,  acids,  salts, and salts of isomers,
 whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
 tration  of  not  more  than three-tenths of one percent on a dry weight
 basis, used or intended for an industrial purpose or those  food  and/or
 food  ingredients  that  are  generally  recognized  as safe, as further
 defined and regulated in the agriculture and markets law.
   22. "Hemp cannabis" means the plant Cannabis sativa L. and any part of
 such plant, including the seeds thereof and all  derivatives,  extracts,
 cannabinoids, isomers, acids, salts, and salts of isomers, whether grow-
 ing  or  not,  with  a delta-9 tetrahydrocannabinol concentration of not
 more than an amount determined by the  office  in  regulation,  used  or
 intended  for  human  or  animal  consumption or use for its cannabinoid
 content, as determined by the executive  director  in  regulation.  Hemp
 cannabis  excludes  industrial  hemp used or intended exclusively for an
 industrial purpose and those  food  and/or  food  ingredients  that  are
 generally recognized as safe, as governed by the Agriculture and Markets
 Law,  and shall not be regulated as "hemp" or "hemp cannabis" within the
 meaning of this section.
   23. "Cannabinoid grower" means a person licensed by the office, and in
 compliance with article twenty-nine of the agriculture and markets  law,
 to  acquire, possess, cultivate, and sell hemp cannabis for its cannabi-
 noid content.
   24. "Cannabinoid extractor" means a person licensed by the  office  to
 acquire,  possess,  extract  and manufacture hemp cannabis from licensed
 cannabinoid growers for  the  manufacture  and  sale  of  hemp  cannabis
 products marketed for cannabinoid content and used or intended for human
 or animal consumption or use.
   25.  "Individual dose" means a single measure of raw cannabis, medical
 cannabis or non-infused concentrate or medical concentrate.
   26. "Labor peace agreement" means an agreement between an entity and a
 labor organization that, at a minimum, protects the state's  proprietary
 interests  by  prohibiting labor organizations and members from engaging
 in picketing, work stoppages, boycotts, and any other economic interfer-
 ence with the registered organization or licensee's business.
   27. "License" means a license issued pursuant to this chapter.
   28. "Medical cannabis" means cannabis as defined in subdivision  three
 of  this section, intended for a certified medical use, as determined by
 the executive director in consultation with the commissioner of health.
   30. "Office" or "office of cannabis management"  means  the  New  York
 state office of cannabis management.
   31. "Permit" means a permit issued pursuant to this chapter.
   32.  "Permittee"  means  any  person  to whom a permit has been issued
 pursuant to this chapter.
   33. "Person" means individual, institution, corporation, government or
 governmental subdivision or agency, business trust, estate, trust, part-
 nership or association, or any other legal entity.

 S. 1509--A                         105                        A. 2009--A
 
   34. "Practitioner" means a practitioner who:   (i)  is  authorized  to
 prescribe  controlled  substances  within the state, (ii) by training or
 experience is qualified to treat  a  serious  condition  as  defined  in
 subdivision  forty-four of this section; and (iii) completes, at a mini-
 mum,  a two-hour course as determined by the executive director in regu-
 lation; provided however, the executive director may  revoke  a  practi-
 tioner's ability to certify patients for cause.
   35.  "Processing" includes, blending, extracting, infusing, packaging,
 labeling, branding and otherwise making or preparing cannabis  products,
 or  such other related processes as determined by the executive director
 in regulation. Processing shall not include the cultivation of cannabis.
   36. "Public place" means a public place as defined  in  regulation  by
 the executive director.
   37.  "Registered  organization" means an organization registered under
 article three of this chapter.
   38. "Registry application" means an application properly completed and
 filed with the office of cannabis  management  by  a  certified  patient
 under article three of this chapter.
   39.  "Registry identification card" means a document that identifies a
 certified patient or designated caregiver,  as  provided  under  section
 thirty-two of this chapter.
   40. "Retail sale" or "sale at retail" means a sale to a consumer or to
 any person for any purpose other than for resale.
   41. "Retailer" means any person who sells at retail any cannabis prod-
 uct,  the  sale  of  which a license is required under the provisions of
 this chapter.
   42. "Sale" means any transfer, exchange or barter in any manner or  by
 any  means  whatsoever,  and  includes  and  means all sales made by any
 person, whether principal, proprietor, agent, servant or employee of any
 cannabis product.
   43. "To sell" includes to solicit or receive an order for, to keep  or
 expose  for  sale, and to keep with intent to sell and shall include the
 transportation or delivery of any cannabis product in the state.
   44. "Serious condition" means  having  one  of  the  following  severe
 debilitating or life-threatening conditions: cancer, positive status for
 human  immunodeficiency  virus  or  acquired immune deficiency syndrome,
 amyotrophic lateral sclerosis, Parkinson's disease, multiple  sclerosis,
 damage to the nervous tissue of the spinal cord with objective neurolog-
 ical  indication of intractable spasticity, epilepsy, inflammatory bowel
 disease,  neuropathies,  Huntington's  disease,  post-traumatic   stress
 disorder,  pain that degrades health and functional capability where the
 use of medical cannabis is an alternative to opioid use,  substance  use
 disorder,  Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthri-
 tis, autism, any condition authorized as part  of  a  cannabis  research
 license, or any other condition as added by the executive director.
   45. "Traffic in" includes to cultivate, process, manufacture, distrib-
 ute  or sell any cannabis, cannabis product, medical cannabis or hemp at
 wholesale or retail.
   46. "Terminally ill" means an individual has a medical prognosis  that
 the  individual's  life  expectancy is approximately one year or less if
 the illness runs its normal course.
   47. "Wholesale sale" or "sale at wholesale" means a sale to any person
 for purposes of resale.
   48. "Distributor" means any person who sells at wholesale any cannabis
 product, except medical cannabis, for the sale of  which  a  license  is
 required under the provisions of this chapter.

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   49.  "Warehouse" means and includes a place in which cannabis products
 are housed or stored.
 
                                 ARTICLE 2
               NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT
 
 Section 9. Establishment of an office of cannabis management.
         10. Executive director.
         11. Executive director's authority.
         12. Rulemaking authority.
         13. State cannabis advisory board.
         14. Disposition of moneys received for license fees.
         15. Legal presumptions.
         16. Violations  of  cannabis  laws or regulations; penalties and
               injunctions.
         17. Formal hearings; notice and procedure.
         18. Ethics, transparency and accountability.
         19. Public health management campaign.
   § 9. Establishment of an office of cannabis management.  Pursuant to a
 chapter  of the laws of two thousand nineteen which added this  chapter,
 there  is  hereby established, within the division of alcoholic beverage
 control, an independent office of cannabis management, which shall  have
 exclusive  jurisdiction  to  exercise  the powers and duties provided by
 this chapter. The office shall exercise its authority by and through  an
 executive director.
   §  10. Executive director.  The executive director of the state office
 of cannabis management shall receive an annual salary not to  exceed  an
 amount  appropriated therefor by the legislature and his or her expenses
 actually and necessarily incurred in the  performance  of  his  official
 duties, unless otherwise provided by the legislature.
   §  11. Functions, powers and duties of the office and executive direc-
 tor.  The office of cannabis management, by and  through  its  executive
 director, shall have the following powers and duties:
   1.  To  issue  or  refuse to issue any registration, license or permit
 provided for in this chapter.
   2. To limit, or not to limit, in the executive director's  discretion,
 the  number  of  registrations, licenses and permits of each class to be
 issued within the state or any political  subdivision  thereof,  and  in
 connection therewith to prohibit the acceptance of applications for such
 classes which have been so limited.
   3.  To  revoke, cancel or suspend for cause any registration, license,
 or permit issued under this chapter and/or to impose a civil penalty for
 cause against any holder of a registration, license,  or  permit  issued
 pursuant to this chapter. Any civil penalty so imposed shall be in addi-
 tion to and separate and apart from the terms and provisions of the bond
 required pursuant to section thirty-six of this chapter.
   4.  To  fix  by  rule  the  standards of cultivation and processing of
 medical cannabis, adult use cannabis and hemp  cannabis,  including  but
 not  limited  to,  the  ability  to  regulate  potency  and the types of
 products which may be manufactured and/or processed, in order to  ensure
 the  health  and  safety of the public and the use of proper ingredients
 and methods in the manufacture of all cannabis and hemp cannabis  to  be
 sold or consumed in the state.
   5.  To  hold  hearings,  subpoena  witnesses, compel their attendance,
 administer oaths, to examine any person under  oath  and  in  connection
 therewith  to require the production of any books or records relative to

 S. 1509--A                         107                        A. 2009--A
 
 the inquiry. A subpoena issued under this section shall be regulated  by
 the civil practice law and rules.
   6.  To  limit or prohibit, at any time of public emergency and without
 previous notice or advertisement, the cultivation, processing,  distrib-
 ution  or sale of any or all cannabis products, medical cannabis or hemp
 cannabis, for and during the period of such emergency.
   7. To appoint any necessary directors, deputies, counsels, assistants,
 investigators, and other employees within the limits provided by  appro-
 priation.  Investigators so employed by the office shall be deemed to be
 peace officers for the purpose of enforcing the provisions of the canna-
 bis  control law or judgements or orders obtained for violation thereof,
 with all the powers set forth in section 2.20 of the criminal  procedure
 law.
   8.  To  remove any employee of the office for cause, after giving such
 employee a copy of the charges against him or her  in  writing,  and  an
 opportunity to be heard thereon. Any action taken under this subdivision
 shall be subject to and in accordance with the civil service law.
   9.  To  inspect or provide for the inspection at any time of any prem-
 ises where cannabis or hemp cannabis is cultivated,  processed,  stored,
 distributed or sold.
   10. To prescribe forms of applications for registrations, licenses and
 permits  under  this  chapter and of all reports deemed necessary by the
 office.
   11. To delegate the powers provided in  this  section  to  such  other
 officers or employees or other state agencies as may be deemed appropri-
 ate by the executive director.
   12.  To  appoint  such advisory groups and committees as the executive
 director deems necessary to provide assistance to the  office  to  carry
 out the purposes and objectives of this chapter.
   13.  To  exercise the powers and perform the duties in relation to the
 administration of the office as are necessary but not specifically vest-
 ed by this chapter, including but not limited to  budgetary  and  fiscal
 matters.
   14. To develop and establish minimum criteria for certifying employees
 to  work  in  the  cannabis  industry,  including the establishment of a
 cannabis workers certification program.
   15. To enter into contracts, memoranda of  understanding,  and  agree-
 ments  as deemed appropriate by the executive director to effectuate the
 policy and purpose of this chapter.
   16. To issue and administer low interest  or  zero-interest  loans  to
 qualified  social  equity  applicants provided the office has sufficient
 funds available for such purposes.
   17. If the executive director finds that  public  health,  safety,  or
 welfare imperatively requires emergency action, and incorporates a find-
 ing  to  that effect in an order, summary suspension of a license may be
 ordered, effective on the date specified in such order or  upon  service
 of  a  certified  copy of such order on the licensee, whichever shall be
 later,  pending  proceedings  for  revocation  or  other  action.  These
 proceedings  shall  be  promptly instituted and determined. In addition,
 the executive director may order the administrative seizure of  product,
 issue a stop order, or take any other action necessary to effectuate and
 enforce the policy and purpose of this chapter.
   18.  To  issue regulations, declaratory rulings, guidance and industry
 advisories.
   § 12. Rulemaking authority.  1. The office shall  perform  such  acts,
 prescribe  such  forms and propose such rules, regulations and orders as

 S. 1509--A                         108                        A. 2009--A
 
 it may deem necessary or proper to fully effectuate  the  provisions  of
 this chapter.
   2. The office shall have the power to promulgate any and all necessary
 rules  and regulations governing the production, processing, transporta-
 tion, distribution, and sale of medical cannabis, recreational cannabis,
 and hemp cannabis, including but not  limited  to  the  registration  of
 organizations  authorized  to traffic in medical cannabis, the licensing
 and/or permitting of adult-use cannabis cultivators, processors, cooper-
 atives, distributors, and retail  dispensaries,  and  the  licensing  of
 cannabinoid growers and extractors, including, but not limited to:
   (a) prescribing forms and establishing application, reinstatement, and
 renewal fees;
   (b)  the  qualifications  and  selection  criteria  for  registration,
 licensing, or permitting;
   (c) the books and records to be created and maintained  by  registered
 organizations,  licensees,  and  permittees, including the reports to be
 made thereon to the office, and inspection of  any  and  all  books  and
 records maintained by any registered organization, licensee, or permitee
 and  on the premise of any registered organization, licensee, or permit-
 tee;
   (d) methods of producing, processing, and packaging cannabis,  medical
 cannabis,  cannabis-infused  products,  concentrated  cannabis, and hemp
 cannabis; conditions of sanitation, and standards of ingredients, quali-
 ty, and identity of cannabis products cultivated,  processed,  packaged,
 or sold by registered organizations and licensees;
   (e)  security  requirements for adult-use cannabis retail dispensaries
 and premises where cannabis products, medical cannabis, and hemp  canna-
 bis,  are  cultivated, produced, processed, or stored, and safety proto-
 cols for registered organizations, licensees and their employees; and
   (f) hearing procedures and additional causes for cancellation, revoca-
 tion, and/or civil penalties against any person registered, licensed, or
 permitted by the authority.
   3. The office shall promulgate rules and regulations that  are  calcu-
 lated to:
   (a)  prevent  the  distribution of adult-use cannabis to persons under
 twenty-one years of age;
   (b) prevent the revenue from the sale of cannabis from going to crimi-
 nal enterprises, gangs, and cartels;
   (c) prevent the diversion of cannabis from this state to other states;
   (d) prevent cannabis activity that is legal under state law from being
 used as a cover or pretext for the trafficking of other illegal drugs or
 other illegal activity;
   (e) prevent violence and the use of firearms in  the  cultivation  and
 distribution of cannabis;
   (f)  prevent  drugged  driving  and  the exacerbation of other adverse
 public health consequences associated with the use of cannabis;
   (g) prevent the growing of cannabis on public lands and the  attendant
 public  safety and environmental dangers posed by cannabis production on
 public lands; and
   (h) prevent the possession and use of cannabis on federal property.
   4. The office, in consultation with the department of agriculture  and
 markets  and the department of environmental conservation, shall promul-
 gate necessary rules and regulations governing the  safe  production  of
 cannabis,  including environmental and energy standards and restrictions
 on the use of pesticides.

 S. 1509--A                         109                        A. 2009--A
 
   § 13. State cannabis advisory board.  1. The executive director  shall
 have the authority to establish within the office a state cannabis advi-
 sory  board,  which may advise the office on cannabis cultivation, proc-
 essing, distribution, transport,  testing  and  sale  and  consider  all
 matters submitted to it by the executive director.
   2. The executive director of the office shall serve as the chairperson
 of  the  board.  The  vice  chairperson  shall be elected from among the
 members of the board by the members of such board, and  shall  represent
 the  board in the absence of the chairperson at all official board func-
 tions.
   3. The members of the board shall receive no  compensation  for  their
 services  but  shall  be  allowed  their  actual  and necessary expenses
 incurred in the performance of their duties as board members.
   4. The executive director shall  be  authorized  to  promulgate  regu-
 lations establishing the number of members on the board, the term of the
 board  members  and  any  other  terms or conditions regarding the state
 cannabis advisory board.
   § 14. Disposition of moneys received for license  fees.    The  office
 shall  establish  a  scale  of application, licensing, and renewal fees,
 based upon the cost of enforcing this chapter and the size of the canna-
 bis business being licensed, as follows:
   1. The office shall charge each registered organization, licensee  and
 permittee  a  registration, licensure or permit fee, and renewal fee, as
 applicable.  The fees may vary depending upon the nature  and  scope  of
 the different registration, licensure and permit activities.
   2. The total fees assessed pursuant to this chapter shall be set at an
 amount  that  will  generate  sufficient total revenue to, at a minimum,
 fully cover the total costs of administering this chapter.
   3. All registration and licensure fees shall be set on a scaled  basis
 by the office, dependent on the size of the business.
   4.  The  office shall deposit all fees collected in the New York state
 cannabis revenue fund established pursuant to section ninety-nine-ff  of
 the state finance law.
   §  15.  Legal  presumptions.   The action, proceedings, authority, and
 orders of the office in enforcing the provisions of the cannabis law and
 applying them to specific cases shall at all times  be  regarded  as  in
 their  nature  judicial,  and  shall  be treated as prima facie just and
 legal.
   § 16. Violations  of  cannabis  laws  or  regulations;  penalties  and
 injunctions.    1. A person who willfully violates any provision of this
 chapter, or any regulation lawfully made or established  by  any  public
 officer  under  authority  of this chapter, the punishment for violating
 which is not otherwise prescribed by this chapter or any other  law,  is
 punishable  by  imprisonment  not  exceeding  one year, or by a fine not
 exceeding five thousand dollars or by both.
   2. Any person  who  violates,  disobeys  or  disregards  any  term  or
 provision  of  this chapter or of any lawful notice, order or regulation
 pursuant thereto for which a civil penalty is  not  otherwise  expressly
 prescribed  by  law,  shall  be  liable to the people of the state for a
 civil penalty of not to exceed five  thousand  dollars  for  every  such
 violation.
   3.  The penalty provided for in subdivision one of this section may be
 recovered by an action brought by the executive director in any court of
 competent jurisdiction.

 S. 1509--A                         110                        A. 2009--A
 
   4. Nothing in this section shall be construed to alter or  repeal  any
 existing  provision  of law declaring such violations to be misdemeanors
 or felonies or prescribing the penalty therefor.
   5.  Such civil penalty may be released or compromised by the executive
 director before the matter has been referred to  the  attorney  general,
 and  where  such  matter  has been referred to the attorney general, any
 such penalty may be released or compromised and any action commenced  to
 recover the same may be settled and discontinued by the attorney general
 with the consent of the executive director.
   6.  It  shall  be the duty of the attorney general upon the request of
 the executive director to bring an action for an injunction against  any
 person  who  violates,  disobeys  or disregards any term or provision of
 this chapter or of any lawful notice, order or regulation pursuant ther-
 eto; provided, however, that the executive director  shall  furnish  the
 attorney  general with such material, evidentiary matter or proof as may
 be requested by the attorney general for  the  prosecution  of  such  an
 action.
   7. It is the purpose of this section to provide additional and cumula-
 tive  remedies,  and  nothing  herein  contained  shall abridge or alter
 rights of action or remedies now or hereafter existing,  nor  shall  any
 provision  of  this  section,  nor  any  action  done  by virtue of this
 section, be construed as estopping the state, persons or  municipalities
 in the exercising of their respective rights.
   §  17. Formal hearings; notice and procedure.  1. The executive direc-
 tor, or any person designated by him or her for this purpose, may  issue
 subpoenas  and administer oaths in connection with any hearing or inves-
 tigation under or pursuant to this chapter, and it shall be the duty  of
 the executive director and any persons designated by him or her for such
 purpose  to  issue  subpoenas  at  the request of and upon behalf of the
 respondent.
   2. The executive director and those designated by him or her shall not
 be bound by the laws of evidence in the conduct of hearing  proceedings,
 but  the  determination  shall  be  founded  upon sufficient evidence to
 sustain it.
   3. Notice of hearing shall be served at least fifteen  days  prior  to
 the  date  of  the hearing, provided that, whenever because of danger to
 the public health, safety or  welfare  it  appears  prejudicial  to  the
 interests  of  the people of the state to delay action for fifteen days,
 the executive director may serve the respondent with an order  requiring
 certain  action  or  the  cessation of certain activities immediately or
 within a specified period of less than fifteen days.
   4. Service of notice of hearing or order shall  be  made  by  personal
 service  or  by  registered or certified mail. Where service, whether by
 personal service or by registered or certified mail,  is  made  upon  an
 incompetent,  partnership,  or  corporation,  it  shall be made upon the
 person or persons designated to  receive  personal  service  by  article
 three of the civil practice law and rules.
   5.  At a hearing, the respondent may appear personally, shall have the
 right of counsel, and may cross-examine witnesses against him or her and
 produce evidence and witnesses in his or her behalf.
   6. Following a hearing, the executive director  may  make  appropriate
 determinations and issue a final order in accordance therewith.
   7.  The  executive director may adopt, amend and repeal administrative
 rules and regulations governing  the  procedures  to  be  followed  with
 respect  to  hearings,  such  rules to be consistent with the policy and

 S. 1509--A                         111                        A. 2009--A
 
 purpose of this chapter and the effective and fair  enforcement  of  its
 provisions.
   8.  The provisions of this section shall be applicable to all hearings
 held pursuant to this chapter, except where  other  provisions  of  this
 chapter  applicable  thereto  are inconsistent therewith, in which event
 such other provisions shall apply.
   § 18. Ethics, transparency and  accountability.    No  member  of  the
 office  or any officer, deputy, assistant, inspector or employee thereof
 shall have any interest, direct or indirect, either  proprietary  or  by
 means  of  any  loan, mortgage or lien, or in any other manner, in or on
 any premises where cannabis, medical cannabis  or  hemp  is  cultivated,
 processed,  distributed  or sold; nor shall he or she have any interest,
 direct or indirect, in any business wholly or partially devoted  to  the
 cultivation,  processing,  distribution, sale, transportation or storage
 of cannabis, medical cannabis or hemp, or own any stock  in  any  corpo-
 ration which has any interest, proprietary or otherwise, direct or indi-
 rect, in any premises where cannabis, medical cannabis or hemp is culti-
 vated,  processed,  distributed  or  sold,  or in any business wholly or
 partially devoted to the cultivation,  processing,  distribution,  sale,
 transportation  or  storage  of  cannabis,  medical cannabis or hemp, or
 receive any commission or profit whatsoever, direct  or  indirect,  from
 any  person applying for or receiving any license or permit provided for
 in this chapter, or hold any other elected or appointed public office in
 the state or in any political subdivision. Anyone who  violates  any  of
 the  provisions of this section shall be removed or shall divulge him or
 herself of such direct or indirect interests.
   § 19. Public health campaign.  The office, in  consultation  with  the
 commissioners  of  the  department  of  health, office of alcoholism and
 substance abuse services and office of mental health, shall develop  and
 implement  a  comprehensive  public  health campaign regarding adult-use
 cannabis.
 
                                 ARTICLE 3
                             MEDICAL CANNABIS
 
 Section 30. Certification of patients.
         31. Lawful medical use.
         32. Registry identification cards.
         33. Registration as a designated caregiver facility.
         34. Registered organizations.
         35. Registering of registered organizations.
         36. Expedited registration of registered organizations.
         37. Reports of registered organizations.
         38. Evaluation; research programs; report by office.
         39. Cannabis research license.
         40. Registered organizations and adult-use cannabis.
         41. Home cultivation of medical cannabis.
         42. Relation to other laws.
         43. Protections for the medical use of cannabis.
         44. Regulations.
         45. Suspend; terminate.
         46. Pricing.
         47. Severability.
   § 30. Certification of patients.  1. A patient certification may  only
 be issued if:

 S. 1509--A                         112                        A. 2009--A
 
   (a)  the  patient has a serious condition, which shall be specified in
 the patient's health care record;
   (b)  the  practitioner by training or experience is qualified to treat
 the serious condition;
   (c) the patient is under the practitioner's continuing  care  for  the
 serious condition; and
   (d)  in  the  practitioner's  professional  opinion and review of past
 treatments, the patient is likely to receive therapeutic  or  palliative
 benefit  from  the  primary  or adjunctive treatment with medical use of
 cannabis for the serious condition.
   2. The certification shall include: (a) the name, date  of  birth  and
 address  of  the patient; (b) a statement that the patient has a serious
 condition and the patient is under the practitioner's care for the seri-
 ous condition; (c) a statement attesting that all requirements of subdi-
 vision one of this section have been satisfied; (d) the  date;  and  (e)
 the name, address, telephone number, and the signature of the certifying
 practitioner.  The executive director may require by regulation that the
 certification shall be on a form provided by the office. The practition-
 er may state in the certification that, in  the  practitioner's  profes-
 sional  opinion,  the  patient  would benefit from medical cannabis only
 until a specified date. The practitioner may state in the  certification
 that,  in the practitioner's professional opinion, the patient is termi-
 nally ill and that the certification shall not expire until the  patient
 dies.
   3.  In  making a certification, the practitioner may consider the form
 of medical cannabis the patient should consume, including the method  of
 consumption and any particular strain, variety, and quantity or percent-
 age of cannabis or particular active ingredient, and appropriate dosage.
 The  practitioner  may  state in the certification any recommendation or
 limitation the practitioner makes, in his or her  professional  opinion,
 concerning the appropriate form or forms of medical cannabis and dosage.
   4.  Every  practitioner  shall  consult  the  prescription  monitoring
 program registry prior to making or issuing  a  certification,  for  the
 purpose  of  reviewing  a  patient's  controlled  substance history. For
 purposes of this section, a practitioner may  authorize  a  designee  to
 consult  the  prescription  monitoring  program  registry  on his or her
 behalf, provided that such designation is  in  accordance  with  section
 thirty-three hundred forty-three-a of the public health law.
   5.  The  practitioner  shall  give  the certification to the certified
 patient, and place a copy in the patient's health care record.
   6. No practitioner shall issue a certification under this section  for
 himself or herself.
   7.  A  registry  identification  card  based  on a certification shall
 expire one year after the date the certification is signed by the  prac-
 titioner.
   8.  (a)  If  the practitioner states in the certification that, in the
 practitioner's professional opinion,  the  patient  would  benefit  from
 medical  cannabis only until a specified earlier date, then the registry
 identification card shall expire on that date; (b) if  the  practitioner
 states  in  the  certification  that  in the practitioner's professional
 opinion the patient is terminally ill and that the  certification  shall
 not expire until the patient dies, then the registry identification card
 shall state that the patient is terminally ill and that the registration
 card  shall  not  expire until the patient dies; (c) if the practitioner
 re-issues the certification to terminate the certification on an earlier
 date, then the registry identification card shall expire  on  that  date

 S. 1509--A                         113                        A. 2009--A
 
 and  shall  be  promptly  destroyed by the certified patient; (d) if the
 certification so provides, the registry identification card shall  state
 any  recommendation  or limitation by the practitioner as to the form or
 forms  of  medical cannabis or dosage for the certified patient; and (e)
 the executive director shall make regulations to implement this subdivi-
 sion.
   § 31. Lawful medical use. The possession, acquisition, use,  delivery,
 transfer,  transportation,  or  administration  of medical cannabis by a
 certified patient, designated caregiver or designated caregiver  facili-
 ty,  for  certified  medical  use,  shall  be  lawful under this article
 provided that:
   (a) the cannabis that may be possessed by a  certified  patient  shall
 not exceed a sixty-day supply of the dosage as determined by the practi-
 tioner, consistent with any guidance and regulations issued by the exec-
 utive  director,  provided that during the last seven days of any sixty-
 day period, the certified patient may also possess up to such amount for
 the next sixty-day period;
   (b) the cannabis that may be possessed by designated  caregivers  does
 not  exceed the quantities referred to in paragraph (a) of this subdivi-
 sion for each certified patient for whom the caregiver possesses a valid
 registry identification card, up to five certified patients;
   (c) the cannabis that may be possessed by designated caregiver facili-
 ties does not exceed the quantities referred to in paragraph (a) of this
 subdivision for each certified patient under the care  or  treatment  of
 the facility;
   (d) the form or forms of medical cannabis that may be possessed by the
 certified patient, designated caregiver or designated caregiver facility
 pursuant  to a certification shall be in compliance with any recommenda-
 tion or limitation by the practitioner  as  to  the  form  or  forms  of
 medical  cannabis  or  dosage  for  the certified patient in the certif-
 ication; and
   (e) the medical cannabis shall be kept  in  the  original  package  in
 which  it  was  dispensed  under  this  article,  except for the portion
 removed for immediate consumption  for  certified  medical  use  by  the
 certified patient.
   §  32. Registry identification cards.  1. Upon approval of the certif-
 ication, the office shall issue registry identification cards for certi-
 fied patients and designated caregivers. A registry identification  card
 shall  expire  as  provided  in this article or as otherwise provided in
 this section.  The office shall begin  issuing  registry  identification
 cards  as  soon as practicable after the certifications required by this
 chapter are granted. The office may specify a form for a registry appli-
 cation, in which case the office shall  provide  the  form  on  request,
 reproductions  of  the form may be used, and the form shall be available
 for downloading from the office's website.
   2. To obtain, amend or renew a registry identification card, a  certi-
 fied  patient  or designated caregiver shall file a registry application
 with the office, unless otherwise exempted by the executive director  in
 regulation.  The  registry  application  or  renewal  application  shall
 include:
   (a) in the case of a certified patient:
   (i) the patient's certification, a new written certification shall  be
 provided with a renewal application;
   (ii) the name, address, and date of birth of the patient;
   (iii) the date of the certification;

 S. 1509--A                         114                        A. 2009--A
 
   (iv)  if  the  patient  has  a registry identification card based on a
 current valid certification,  the  registry  identification  number  and
 expiration date of that registry identification card;
   (v)  the  specified  date  until  which the patient would benefit from
 medical cannabis, if the certification states such a date;
   (vi) the name, address, and telephone number of the certifying practi-
 tioner;
   (vii) any recommendation or limitation by the practitioner as  to  the
 form or forms of medical cannabis or dosage for the certified patient;
   (viii) if the certified patient designates a designated caregiver, the
 name,  address, and date of birth of the designated caregiver, and other
 individual identifying information required by the office; and
   (ix) other individual identifying information required by the office;
   (b) in the case of a designated caregiver:
   (i) the name, address, and date of birth of the designated caregiver;
   (ii) if the designated caregiver has a registry  identification  card,
 the  registry identification number and expiration date of that registry
 identification card; and
   (iii) other individual identifying information required by the office;
   (c) a statement that a false statement  made  in  the  application  is
 punishable under section 210.45 of the penal law;
   (d)  the  date  of  the application and the signature of the certified
 patient or designated caregiver, as the case may be;
   (e) any other requirements determined by the executive director.
   3. Where a certified patient is under the age of eighteen or otherwise
 incapable of consent:
   (a) The application for a registry identification card shall  be  made
 by  an  appropriate  person  over eighteen years of age. The application
 shall state facts demonstrating that the person is appropriate.
   (b) The designated caregiver shall be: (i) a parent or legal  guardian
 of  the certified patient; (ii) a person designated by a parent or legal
 guardian; (iii) a designated caregiver facility; or (iv) an  appropriate
 person  approved  by the office upon a sufficient showing that no parent
 or legal guardian is appropriate or available.
   4. No person may be a designated caregiver  if  the  person  is  under
 twenty-one  years  of  age  unless  a  sufficient showing is made to the
 office that the person should be permitted  to  serve  as  a  designated
 caregiver.  The  requirements  for such a showing shall be determined by
 the executive director.
   5. No person may be a designated caregiver for more than  five  certi-
 fied patients at one time.
   6.  If  a  certified  patient wishes to change or terminate his or her
 designated caregiver, for whatever reason, the certified  patient  shall
 notify  the  office  as  soon  as  practicable. The office shall issue a
 notification to the designated caregiver that their registration card is
 invalid and must be promptly destroyed. The newly  designated  caregiver
 must comply with all requirements set forth in this section.
   7.  If the certification so provides, the registry identification card
 shall contain any recommendation or limitation by the practitioner as to
 the form or forms of  medical  cannabis  or  dosage  for  the  certified
 patient.
   8.  The  office shall issue separate registry identification cards for
 certified patients and designated caregivers as soon as reasonably prac-
 ticable after receiving  a  complete  application  under  this  section,
 unless  it  determines  that  the application is incomplete or factually
 inaccurate, in which case it shall promptly notify the applicant.

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   9. If the application of a certified patient designates an  individual
 as a designated caregiver who is not authorized to be a designated care-
 giver, that portion of the application shall be denied by the office but
 that shall not affect the approval of the balance of the application.
   10. A registry identification card shall:
   (a)  contain the name of the certified patient or the designated care-
 giver as the case may be;
   (b) contain the date of issuance and expiration date of  the  registry
 identification card;
   (c) contain a registry identification number for the certified patient
 or  designated  caregiver, as the case may be and a registry identifica-
 tion number;
   (d) contain a photograph of the individual to whom the registry  iden-
 tification  card  is being issued, which shall be obtained by the office
 in  a  manner  specified  by  the  executive  director  in  regulations;
 provided,  however,  that  if  the office requires certified patients to
 submit photographs for this purpose, there shall be a reasonable  accom-
 modation  of  certified  patients who are confined to their homes due to
 their medical conditions and may  therefore  have  difficulty  procuring
 photographs;
   (e) be a secure document as determined by the office;
   (f) plainly state any recommendation or limitation by the practitioner
 as  to the form or forms of medical cannabis or dosage for the certified
 patient; and
   (g) any other requirements determined by the executive director.
   11. A certified patient or designated caregiver who has been issued  a
 registry  identification  card  shall notify the office of any change in
 his or her name or address or, with respect to the patient, if he or she
 ceases to have the serious condition noted on the  certification  within
 ten   days  of  such  change.  The  certified  patient's  or  designated
 caregiver's registry identification card shall  be  deemed  invalid  and
 shall be promptly destroyed.
   12.  If  a  certified patient or designated caregiver loses his or her
 registry identification card, he or she shall notify the  office  within
 ten days of losing the card. The office shall issue a new registry iden-
 tification card as soon as practicable, which may contain a new registry
 identification number, to the certified patient or designated caregiver,
 as the case may be.
   13.  The  office  shall maintain a confidential list of the persons to
 whom it has issued registry identification cards. Individual identifying
 information obtained by the office under this article shall be confiden-
 tial and exempt from disclosure under article six of the public officers
 law.  Notwithstanding this subdivision, the office may notify any appro-
 priate law enforcement agency of information relating to  any  violation
 or suspected violation of this article.
   14.  The office shall verify to law enforcement personnel in an appro-
 priate case whether a registry identification card is valid.
   15. If a certified patient or designated caregiver willfully  violates
 any  provision  of this article as determined by the executive director,
 his or  her  certification  and  registry  identification  card  may  be
 suspended  or revoked. This is in addition to any other penalty that may
 apply.
   § 33. Registration as a designated caregiver facility.  1. To  obtain,
 amend  or  renew  a registration as a designated caregiver facility, the
 facility shall file a registry application with the office. The registry
 application or renewal application shall include:

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   (a) the facility's full name and address;
   (b) operating certificate or license number where appropriate;
   (c)  printed  name,  title,  and  signature  of an authorized facility
 representative;
   (d) a statement that the facility agrees to secure and  ensure  proper
 handling of all medical cannabis products;
   (e)  an  acknowledgement  that a false statement in the application is
 punishable under section 210.45 of the penal law; and
   (f) any other information that may be required by the executive direc-
 tor.
   2. Prior to issuing or renewing a designated caregiver facility regis-
 tration, the office may verify the information submitted by  the  appli-
 cant.  The applicant shall provide, at the office's request, such infor-
 mation and documentation, including any consents or authorizations  that
 may be necessary for the office to verify the information.
   3.  The  office shall approve, deny or determine incomplete or inaccu-
 rate an initial or renewal application within thirty days of receipt  of
 the  application. If the application is approved within the 30-day peri-
 od, the office shall issue a registration as soon as is reasonably prac-
 ticable.
   4. An applicant shall have thirty days from the date of a notification
 of an incomplete or factually inaccurate application to submit the mate-
 rials required to complete, revise or substantiate  information  in  the
 application.  If  the  applicant  fails to submit the required materials
 within such thirty-day time period, the application shall be  denied  by
 the office.
   5.  Registrations issued under this section shall remain valid for two
 years from the date of issuance.
   § 34. Registered organizations.  1. A registered organization shall be
 a for-profit business entity or not-for-profit corporation organized for
 the purpose of acquiring, possessing, manufacturing,  selling,  deliver-
 ing,  transporting,  distributing  or  dispensing cannabis for certified
 medical use.
   2. The acquiring, possession, manufacture, sale, delivery,  transport-
 ing,  distributing  or  dispensing  of  medical cannabis by a registered
 organization under this article  in  accordance  with  its  registration
 under this article or a renewal thereof shall be lawful under this chap-
 ter.
   3.  Each  registered  organization  shall contract with an independent
 laboratory permitted by the office to test the medical cannabis produced
 by the registered organization. The executive director shall approve the
 laboratory used by the registered organization and may require that  the
 registered organization use a particular testing laboratory.
   4.  (a)  A  registered organization may lawfully, in good faith, sell,
 deliver, distribute or dispense medical cannabis to a certified  patient
 or designated caregiver upon presentation to the registered organization
 of  a  valid  registry identification card for that certified patient or
 designated caregiver.  When presented with the  registry  identification
 card, the registered organization shall provide to the certified patient
 or designated caregiver a receipt, which shall state: the name, address,
 and  registry  identification number of the registered organization; the
 name and registry identification number of the certified patient and the
 designated caregiver, if any; the date the cannabis was sold; any recom-
 mendation or limitation by the practitioner as to the form or  forms  of
 medical  cannabis  or dosage for the certified patient; and the form and
 the quantity of medical cannabis sold. The registered organization shall

 S. 1509--A                         117                        A. 2009--A
 
 retain a copy of the registry identification card and  the  receipt  for
 six years.
   (b) The proprietor of a registered organization shall file or cause to
 be  filed  any  receipt and certification information with the office by
 electronic means on a real-time basis as the  executive  director  shall
 require by regulation. When filing receipt and certification information
 electronically  pursuant to this paragraph, the proprietor of the regis-
 tered  organization  shall  dispose  of  any   electronically   recorded
 prescription  information in such manner as the executive director shall
 by regulation require.
   5. (a) No registered organization may  sell,  deliver,  distribute  or
 dispense  to any certified patient or designated caregiver a quantity of
 medical cannabis larger than that individual would be allowed to possess
 under this chapter.
   (b) When dispensing medical cannabis to a certified patient or  desig-
 nated caregiver, the registered organization:  (i) shall not dispense an
 amount  greater than a sixty-day supply to a certified patient until the
 certified patient has exhausted all but  a  seven  day  supply  provided
 pursuant to a previously issued certification; and (ii) shall verify the
 information  in  subparagraph  (i)  of  this paragraph by consulting the
 prescription monitoring program registry under this article.
   (c) Medical cannabis dispensed to a certified  patient  or  designated
 caregiver  by a registered organization shall conform to any recommenda-
 tion or limitation by the practitioner  as  to  the  form  or  forms  of
 medical cannabis or dosage for the certified patient.
   6.  When  a  registered  organization  sells, delivers, distributes or
 dispenses medical cannabis to a certified patient or designated caregiv-
 er, it shall provide to that individual a safety insert, which  will  be
 developed  by  the registered organization and approved by the executive
 director and include, but not be limited to, information on:
   (a) methods for administering medical cannabis in individual doses,
   (b) any potential dangers stemming from the use of medical cannabis,
   (c) how to recognize what may be problematic usage of medical cannabis
 and obtain appropriate services or treatment for problematic usage, and
   (d) other information as determined by the executive director.
   7. Registered organizations shall not be managed by or  employ  anyone
 who  has  been  convicted  of  any  felony  other  than  for the sale or
 possession of drugs, narcotics, or controlled substances,  and  provided
 that this subdivision only applies to (a) managers or employees who come
 into  contact with or handle medical cannabis, and (b) a conviction less
 than ten years, not counting time spent in incarceration, prior to being
 employed, for which the person has not received a certificate of  relief
 from  disabilities  or a certificate of good conduct under article twen-
 ty-three of the correction law.
   8. Manufacturing of medical  cannabis  by  a  registered  organization
 shall  only  be  done in an indoor, enclosed, secure facility located in
 New York state, which may include a greenhouse. The  executive  director
 shall  promulgate regulations establishing requirements for such facili-
 ties.
   9. Dispensing of medical cannabis by a registered  organization  shall
 only be done in an indoor, enclosed, secure facility located in New York
 state,  which  may  include  a  greenhouse. The executive director shall
 promulgate regulations establishing requirements for such facilities.
   10. A registered organization shall determine the quality, safety, and
 clinical strength of medical cannabis manufactured or dispensed  by  the
 registered  organization, and shall provide documentation of that quali-

 S. 1509--A                         118                        A. 2009--A
 
 ty, safety and clinical strength to the office  and  to  any  person  or
 entity to which the medical cannabis is sold or dispensed.
   11.  A  registered  organization  shall be deemed to be a "health care
 provider" for the purposes of article two-D of article two of the public
 health law.
   12. Medical cannabis shall be dispensed  to  a  certified  patient  or
 designated  caregiver  in  a  sealed  and  properly labeled package. The
 labeling shall contain: (a) the information required to be  included  in
 the receipt provided to the certified patient or designated caregiver by
 the  registered organization; (b) the packaging date; (c) any applicable
 date by which the medical cannabis should be used; (d) a  warning  stat-
 ing,  "This  product is for medicinal use only. Women should not consume
 during pregnancy or while breastfeeding except  on  the  advice  of  the
 certifying  health  care  practitioner, and in the case of breastfeeding
 mothers, including the infant's pediatrician. This product might  impair
 the ability to drive. Keep out of reach of children."; (e) the amount of
 individual  doses  contained  within; and (f) a warning that the medical
 cannabis must be  kept  in  the  original  container  in  which  it  was
 dispensed.
   13. The executive director is authorized to make rules and regulations
 restricting the advertising and marketing of medical cannabis.
   §  35.  Registering  of registered organizations.   1. Application for
 initial registration. (a) An applicant for registration as a  registered
 organization  under  section  thirty-four  of this article shall include
 such information prepared in such manner and  detail  as  the  executive
 director may require, including but not limited to:
   (i) a description of the activities in which it intends to engage as a
 registered organization;
   (ii) that the applicant:
   (A) is of good moral character;
   (B)  possesses or has the right to use sufficient land, buildings, and
 other premises, which shall be specified in the application, and  equip-
 ment  to properly carry on the activity described in the application, or
 in the alternative posts a bond of not less than two million dollars;
   (C) is able to maintain effective  security  and  control  to  prevent
 diversion,  abuse,  and  other illegal conduct relating to the cannabis;
 and
   (D) is able to comply with all applicable state laws  and  regulations
 relating  to  the  activities  in  which  it intends to engage under the
 registration;
   (iii) that the applicant has entered into a labor peace agreement with
 a bona fide labor organization that is actively engaged in  representing
 or attempting to represent the applicant's employees and the maintenance
 of  such  a labor peace agreement shall be an ongoing material condition
 of certification;
   (iv) the applicant's status as a for-profit business  entity  or  not-
 for-profit corporation; and
   (v)  the  application  shall  include  the name, residence address and
 title of each of the officers and directors and the name  and  residence
 address  of any person or entity that is a member of the applicant. Each
 such person, if an individual, or lawful representative if a legal enti-
 ty, shall submit an affidavit with the application setting forth:
   (A) any position of management or ownership during the  preceding  ten
 years  of  a  ten  per centum or greater interest in any other business,
 located in or outside this state, manufacturing or distributing drugs;

 S. 1509--A                         119                        A. 2009--A
 
   (B) whether such person or any such business has been convicted  of  a
 felony  or  had  a  registration  or license suspended or revoked in any
 administrative or judicial proceeding; and
   (C)  such  other  information as the executive director may reasonably
 require.
   2. The applicant shall be under a continuing duty  to  report  to  the
 office any change in facts or circumstances reflected in the application
 or  any  newly  discovered  or  occurring  fact or circumstance which is
 required to be included in the application.
   3. (a) The executive director shall grant a registration or  amendment
 to a registration under this section if he or she is satisfied that:
   (i)  the  applicant will be able to maintain effective control against
 diversion of cannabis;
   (ii) the applicant will be able to comply with  all  applicable  state
 laws;
   (iii)  the  applicant  and its officers are ready, willing and able to
 properly carry on the manufacturing or distributing activity for which a
 registration is sought;
   (iv) the applicant possesses or has the right to use sufficient  land,
 buildings  and  equipment to properly carry on the activity described in
 the application;
   (v) it is in the public interest that such  registration  be  granted,
 including but not limited to:
   (A)  whether the number of registered organizations in an area will be
 adequate or excessive to reasonably serve the area;
   (B) whether the registered organization is  a  minority  and/or  woman
 owned business enterprise or a service-disabled veteran-owned business;
   (C)   whether  the  registered  organization  provides  education  and
 outreach to practitioners;
   (D) whether the registered  organization  promotes  the  research  and
 development of medical cannabis and patient outreach; and
   (E)  the affordability medical cannabis products offered by the regis-
 tered organization;
   (vi) the applicant and its managing officers are of good moral charac-
 ter;
   (vii) the applicant has entered into a labor peace  agreement  with  a
 bona fide labor organization that is actively engaged in representing or
 attempting  to  represent the applicant's employees; and the maintenance
 of such a labor peace agreement shall be an ongoing  material  condition
 of registration; and
   (viii)  the  applicant satisfies any other conditions as determined by
 the executive director.
   (b) If the executive director is  not  satisfied  that  the  applicant
 should be issued a registration, he or she shall notify the applicant in
 writing  of  those factors upon which the denial is based. Within thirty
 days of the receipt of such notification, the  applicant  may  submit  a
 written request to the executive director to appeal the decision.
   (c)  The  fee for a registration under this section shall be an amount
 determined by the office  in  regulations;  provided,  however,  if  the
 registration is issued for a period greater than two years the fee shall
 be increased, pro rata, for each additional month of validity.
   (d)  Registrations  issued  under this section shall be effective only
 for the registered organization and shall specify:
   (i) the name and address of the registered organization;
   (ii) which activities of a registered organization  are  permitted  by
 the registration;

 S. 1509--A                         120                        A. 2009--A
 
   (iii)  the  land,  buildings  and  facilities that may be used for the
 permitted activities of the registered organization; and
   (iv) such other information as the executive director shall reasonably
 provide to assure compliance with this article.
   (e)  Upon application of a registered organization, a registration may
 be amended to allow the registered organization to relocate  within  the
 state  or  to add or delete permitted registered organization activities
 or facilities. The fee for such amendment shall  be  two  hundred  fifty
 dollars.
   4.  A  registration  issued  under this section shall be valid for two
 years from the date of issue, except that in  order  to  facilitate  the
 renewals  of  such  registrations,  the  executive director may upon the
 initial application for a registration, issue some  registrations  which
 may  remain  valid  for  a period of time greater than two years but not
 exceeding an additional eleven months.
   5.  (a) An application for the  renewal  of  any  registration  issued
 under  this  section  shall  be  filed with the office not more than six
 months nor less than four months prior  to  the  expiration  thereof.  A
 late-filed  application  for  the  renewal of a registration may, in the
 discretion of the executive director, be treated as an  application  for
 an initial license.
   (b)  The  application  for  renewal  shall  include  such  information
 prepared in the manner and detail as the executive director may require,
 including but not limited to:
   (i) any material change in the  circumstances  or  factors  listed  in
 subdivision one of this section; and
   (ii)  every known charge or investigation, pending or concluded during
 the period of the registration, by any  governmental  or  administrative
 agency with respect to:
   (A)  each  incident  or alleged incident involving the theft, loss, or
 possible diversion of cannabis manufactured or distributed by the appli-
 cant; and
   (B) compliance by the applicant  with  the  laws  of  the  state  with
 respect  to  any substance listed in section thirty-three hundred six of
 the public health law.
   (c) An applicant for renewal shall  be  under  a  continuing  duty  to
 report  to  the office any change in facts or circumstances reflected in
 the application or any newly discovered or  occurring  fact  or  circum-
 stance which is required to be included in the application.
   (d)  If  the  executive  director is not satisfied that the registered
 organization applicant is entitled to a renewal of the registration,  he
 or  she  shall within a reasonably practicable time as determined by the
 executive director, serve upon the registered organization or its attor-
 ney of record in person or by registered  or  certified  mail  an  order
 directing  the registered organization to show cause why its application
 for renewal should not be denied. The order shall specify in detail  the
 respects in which the applicant has not satisfied the executive director
 that the registration should be renewed.
   6.  (a) The executive director shall renew a registration unless he or
 she determines and finds that:
   (i) the applicant is unlikely to  maintain  or  be  able  to  maintain
 effective control against diversion;
   (ii)  the applicant is unlikely to comply with all state laws applica-
 ble to the activities in which it may engage under the registration;

 S. 1509--A                         121                        A. 2009--A
 
   (iii) it is not in the  public  interest  to  renew  the  registration
 because  the  number of registered organizations in an area is excessive
 to reasonably serve the area; or
   (iv)  the  applicant has either violated or terminated its labor peace
 agreement.
   (b) For purposes of this section, proof that  a  registered  organiza-
 tion,  during  the  period  of  its registration, has failed to maintain
 effective control against diversion,  violates  any  provision  of  this
 article,  or has knowingly or negligently failed to comply with applica-
 ble state laws relating to the activities in which it engages under  the
 registration,  shall  constitute  grounds for suspension, termination or
 limitation of the registered organization's registration  or  as  deter-
 mined  by the executive director. The registered organization shall also
 be under a continuing duty to  report  to  the  authority  any  material
 change or fact or circumstance to the information provided in the regis-
 tered organization's application.
   7.  The  office  may suspend or terminate the registration of a regis-
 tered organization, on grounds and using procedures under  this  article
 relating  to a license, to the extent consistent with this article.  The
 authority shall suspend or terminate the registration in the event  that
 a  registered  organization  violates or terminates the applicable labor
 peace agreement. Conduct in  compliance  with  this  article  which  may
 violate  conflicting  federal  law,  shall  not be grounds to suspend or
 terminate a registration.
   8. The office shall begin issuing registrations for registered  organ-
 izations  as  soon  as  practicable after the certifications required by
 this article are given.
   9. The executive director  shall  register  at  least  ten  registered
 organizations  that  manufacture medical cannabis with no more than four
 dispensing sites wholly owned and operated by such registered  organiza-
 tion. The executive director shall ensure that such registered organiza-
 tions  and  dispensing  sites  are geographically distributed across the
 state. The executive director may register additional registered  organ-
 izations.
   § 36. Expedited registration of registered organizations.  1. There is
 hereby  established  in  the office an emergency medical cannabis access
 program, referred to in  this  section  as  the  "program",  under  this
 section.  The  purpose of the program is to expedite the availability of
 medical cannabis to avoid suffering and loss of life, during the  period
 before  full  implementation of and production under this article, espe-
 cially in the case of patients whose serious  condition  is  progressive
 and  degenerative  or is such that delay in the patient's medical use of
 cannabis poses a serious risk to the patient's  life  or  health.    The
 executive director shall implement the program as expeditiously as prac-
 ticable, including by emergency regulation.
   2.  For the purposes of this section, and for specified limited times,
 the executive director may waive or  modify  the  requirements  of  this
 article relating to registered organizations, consistent with the legis-
 lative  intent  and  purpose  of this article and this section. Where an
 entity seeking to be a registered organization under the  program  oper-
 ates in a jurisdiction other than the state of New York, under licensure
 or  other governmental recognition of that jurisdiction, and the laws of
 that jurisdiction are acceptable to the executive director as consistent
 with the legislative  intent  and  purpose  of  this  article  and  this
 section, then the executive director may accept that licensure or recog-
 nition  as wholly or partially satisfying the requirements of this arti-

 S. 1509--A                         122                        A. 2009--A
 
 cle, for purposes of the registration and operation  of  the  registered
 organization under the program and this section.
   3.  In  considering  an  application  for registration as a registered
 organization under this section, the executive director shall give pref-
 erence to the following:
   (a) an applicant that is currently producing or  providing  or  has  a
 history  of producing or providing medical cannabis in another jurisdic-
 tion in full compliance with the laws of the jurisdiction;
   (b) an applicant that is able and qualified to both produce,  distrib-
 ute, and dispense medical cannabis to patients expeditiously; and
   (c)  an applicant that proposes a location or locations for dispensing
 by the registered organization, which ensure,  to  the  greatest  extent
 possible,  that certified patients have access to a registered organiza-
 tion.
   4. The executive director may make regulations under this section:
   (a) limiting registered organizations registered under  this  section;
 or
   (b)  limiting the allowable levels of cannabidiol and tetrahydrocanna-
 binol that may be contained in medical cannabis  authorized  under  this
 article, based on therapeutics and patient safety.
   5.  A  registered organization under this section may apply under this
 article to receive or renew registration.
   § 37. Reports of registered organizations.  1. The executive  director
 shall,  by  regulation,  require  each  registered  organization to file
 reports by the registered organization during a particular  period.  The
 executive  director  shall  determine the information to be reported and
 the forms, time, and manner of the reporting.
   2. The executive director shall, by regulation,  require  each  regis-
 tered  organization  to  adopt  and  maintain security, tracking, record
 keeping, record retention and  surveillance  systems,  relating  to  all
 medical  cannabis  at every stage of acquiring, possession, manufacture,
 sale, delivery, transporting, distributing, or dispensing by the  regis-
 tered organization, subject to regulations of the executive director.
   §  38. Evaluation; research programs; report by office.  1. The execu-
 tive director may provide for the analysis and evaluation of the  opera-
 tion  of  this title.   The executive director may enter into agreements
 with one or more persons, not-for-profit corporations or other organiza-
 tions, for the performance of an evaluation of  the  implementation  and
 effectiveness of this title.
   2.  The  office  may develop, seek any necessary federal approval for,
 and carry out research programs relating to  medical  use  of  cannabis.
 Participation  in  any  such  research program shall be voluntary on the
 part of practitioners, patients, and designated caregivers.
   3. The office shall report every two years, beginning two years  after
 the  effective date of this chapter, to the governor and the legislature
 on the medical use of cannabis under this  title  and  make  appropriate
 recommendations.
   §  39.  Cannabis  research  license.   1. The executive director shall
 establish a  cannabis  research  license  that  permits  a  licensee  to
 produce, process, purchase and possess cannabis for the following limit-
 ed research purposes:
   (a) to test chemical potency and composition levels;
   (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
 products;
   (c) to conduct research on the efficacy and  safety  of  administering
 cannabis as part of medical treatment; and

 S. 1509--A                         123                        A. 2009--A
 
   (d) to conduct genomic or agricultural research.
   2. As part of the application process for a cannabis research license,
 an  applicant  must  submit  to the office a description of the research
 that is intended to be conducted as well as the amount of cannabis to be
 grown or purchased. The office  shall  review  an  applicant's  research
 project  and  determine  whether it meets the requirements of subsection
 one of this section. In addition, the office shall assess  the  applica-
 tion based on the following criteria:
   (a) project quality, study design, value, and impact;
   (b)  whether  the  applicant has the appropriate personnel, expertise,
 facilities and infrastructure, funding,  and  human,  animal,  or  other
 approvals in place to successfully conduct the project; and
   (c)  whether  the  amount  of cannabis to be grown or purchased by the
 applicant is consistent with the  project's  scope  and  goals.  If  the
 office  determines  that the research project does not meet the require-
 ments of subsection one of this section, the application must be denied.
   3. A cannabis research licensee may only sell cannabis grown or within
 its operation to other  cannabis  research  licensees.  The  office  may
 revoke a cannabis research license for violations of this subsection.
   4. A cannabis research licensee may contract with the higher education
 institutions to perform research in conjunction with the university. All
 research  projects,  entered into under this section must be approved by
 the office and meet the requirements of subsection one of this section.
   5. In establishing a cannabis research license, the executive director
 may adopt regulations on the following:
   (a) application requirements;
   (b) cannabis research license renewal requirements, including  whether
 additional research projects may be added or considered;
   (c) conditions for license revocation;
   (d)  security  measures to ensure cannabis is not diverted to purposes
 other than research;
   (e) amount of plants,  useable  cannabis,  cannabis  concentrates,  or
 cannabis-infused products a licensee may have on its premises;
   (f) licensee reporting requirements;
   (g) conditions under which cannabis grown by licensed cannabis produc-
 ers  and  other  product  types from licensed cannabis processors may be
 donated to cannabis research licensees; and
   (h) any additional requirements deemed necessary by the office.
   6. A cannabis research license issued pursuant to this section must be
 issued in the name of the applicant, specify the location at  which  the
 cannabis  researcher  intends to operate, which must be within the state
 of New York, and the holder thereof may not allow any  other  person  to
 use the license.
   7. The application fee for a cannabis research license shall be deter-
 mined by the executive director on an annual basis.
   8. Each cannabis research licensee shall issue an annual report to the
 office.  The office shall review such report and make a determination as
 to whether the research project continues to meet  the  research  quali-
 fications under this section.
   §  40. Registered organizations and adult-use cannabis.  1. The execu-
 tive director shall have the authority to  grant  some  or  all  of  the
 registered  organizations  previously  registered with the department of
 health and currently registered and in good standing  with  the  office,
 the  ability  to  be licensed to cultivate, process, distribute and sell
 adult-use cannabis and cannabis products, pursuant to any fees, rules or
 conditions prescribed by  the  executive  director  in  regulation,  but

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 exempt from the restrictions on licensed adult-use cultivators, process-
 ors,  and  distributors from having any ownership interest in a licensed
 adult-use retail dispensary pursuant to article four of this chapter.
   2.  The  office shall have the authority to hold a competitive bidding
 process,   including   an   auction,   to   determine   the   registered
 organization(s)   authorized  to  be  licensed  to  cultivate,  process,
 distribute and sell adult-use cannabis and to collect the fees generated
 from such auction to administer  incubators  and  low  or  zero-interest
 loans  to  qualified  social equity applicants. The timing and manner in
 which registered organizations may be granted such  authority  shall  be
 determined by the executive director in regulation.
   3.  Alternatively, registered organizations may apply for licensure as
 an adult-use cannabis  cultivator,  adult-use  cannabis  processor,  and
 adult-use  cannabis  distributor, or apply for licensure as an adult-use
 cannabis retail dispensary, subject to all of the restrictions and limi-
 tations set forth in article four of this chapter.
   § 41. Home cultivation of medical cannabis.  1. Certified patients and
 their designated caregiver(s) twenty-one years of age or older may apply
 for registration with the office to grow, possess or transport  no  more
 than  four cannabis plants per certified patient with no more than eight
 cannabis plants per household.
   2. All medical cannabis  cultivated  at  home  must  be  grown  in  an
 enclosed,  locked space, not open or viewable to the public. Such homeg-
 rown medical cannabis must only be for use by the certified patient  and
 may not be distributed, sold, or gifted.
   3.  The executive director shall develop rules and regulations govern-
 ing this section.
   § 42. Relation to other laws.  1. The provisions of this article shall
 apply, except that where a provision  of  this  article  conflicts  with
 another provision of this chapter, this article shall apply.
   2. Medical cannabis shall not be deemed to be a "drug" for purposes of
 article one hundred thirty-seven of the education law.
   §  43.  Protections  for  the  medical use of cannabis.   1. Certified
 patients, designated caregivers, designated caregiver facilities,  prac-
 titioners,  registered  organizations  and  the  employees of registered
 organizations, and cannabis researchers shall not be subject to  arrest,
 prosecution, or penalty in any manner, or denied any right or privilege,
 including  but  not limited to civil penalty or disciplinary action by a
 business or occupational or  professional  licensing  board  or  bureau,
 solely  for the certified medical use or manufacture of cannabis, or for
 any other action or conduct in accordance with this article.
   2. Being a certified patient shall be deemed to be having a "disabili-
 ty" under article fifteen of the executive law, section forty-c  of  the
 civil  rights law, sections 240.00, 485.00, and 485.05 of the penal law,
 and section 200.50 of the criminal procedure law. This subdivision shall
 not bar the  enforcement  of  a  policy  prohibiting  an  employee  from
 performing  his  or her employment duties while impaired by a controlled
 substance. This subdivision shall not require any person or entity to do
 any act that would put the person  or  entity  in  direct  violation  of
 federal law or cause it to lose a federal contract or funding.
   3.  The  fact  that  a  person is a certified patient and/or acting in
 accordance with this article, shall not be a consideration in a proceed-
 ing pursuant to applicable sections of the domestic relations  law,  the
 social services law and the family court act.
   4.  (a) Certification applications, certification forms, any certified
 patient information contained within a database, and copies of  registry

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 identification cards shall be deemed exempt from public disclosure under
 sections eighty-seven and eighty-nine of the public officers law.
   (b)  The  name, contact information, and other information relating to
 practitioners registered with the office under  this  article  shall  be
 public  information and shall be maintained by the executive director on
 the office's website accessible to the public in searchable form. Howev-
 er, if a practitioner notifies the office in writing that he or she does
 not want his or her name and other information disclosed,  that  practi-
 tioner's  name  and  other  information  shall  thereafter not be public
 information or maintained on the office's website,  unless  the  practi-
 tioner cancels the request.
   §  44. Regulations.   The executive director shall make regulations to
 implement this article.
   § 45. Suspend; terminate.  Based upon the recommendation of the execu-
 tive director and/or the superintendent of state police that there is  a
 risk to the public health or safety, the governor may immediately termi-
 nate all licenses issued to registered organizations.
   § 46. Pricing.  1. Every sale of medical cannabis shall be at or below
 the  price  approved  by  the executive director.   Every charge made or
 demanded for medical cannabis not in accordance with the price  approved
 by the executive director, is prohibited.
   2.  The  executive  director  is hereby authorized to set the per dose
 price of each form of medical cannabis sold by any registered  organiza-
 tion.  In reviewing the per dose price of each form of medical cannabis,
 the executive director may consider the  fixed  and  variable  costs  of
 producing the form of cannabis and any other factor the executive direc-
 tor,  in his or her discretion, deems relevant in reviewing the per dose
 price of each form of medical cannabis.
   § 47. Severability.  If any clause, sentence,  paragraph,  section  or
 part  of this article shall be adjudged by any court of competent juris-
 diction to be invalid, the judgment shall not affect, impair, or invali-
 date the remainder thereof, but shall be confined in  its  operation  to
 the  clause,  sentence,  paragraph,  section  or  part  thereof directly
 involved in the controversy  in  which  the  judgment  shall  have  been
 rendered.
 
                                 ARTICLE 4
                            ADULT-USE CANNABIS
 
 Section 60. Licenses issued.
         61. License application.
         62. Information to be requested in applications for licenses.
         63. Fees.
         64. Selection criteria.
         65. Limitations of licensure; duration.
         66. License renewal.
         67. Amendments;  changes  in ownership and organizational struc-
               ture.
         68. Adult-use cultivator license.
         69. Adult-use processor license.
         70. Adult-use cooperative license.
         71. Adult-use distributor license.
         72. Adult-use retail dispensary license.
         73. Notification to municipalities of adult-use  retail  dispen-
               sary.

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         74. On-site  consumption  license;  provisions governing on-site
               consumption licenses.
         75. Record keeping and tracking.
         76. Inspections and ongoing requirements.
         77. Adult-use  cultivators, processors or distributors not to be
               interested in retail dispensaries.
         78. Packaging and labeling of adult-use cannabis products.
         79. Laboratory testing.
         80. Provisions  governing  the  cultivation  and  processing  of
               adult-use cannabis.
         81. Provisions governing the distribution of adult-use cannabis.
         82. Provisions governing adult-use cannabis retail dispensaries.
         83. Adult-use cannabis advertising.
         84. Minority,  women-owned businesses and disadvantaged farmers;
               incubator program.
         85. Regulations.
   § 60. Licenses issued.   The following  kinds  of  licenses  shall  be
 issued  by  the  executive  director  for  the  cultivation, processing,
 distribution and sale of cannabis to cannabis consumers:
   1. Adult-use cultivator license;
   2. Adult-use processor license;
   3. Adult-use cooperative license;
   4. Adult-use distributor license;
   5. Adult-use retail dispensary license;
   6. On-site consumption license; and
   7. Any other type of license as prescribed by the  executive  director
 in regulation.
   §  61. License Application.  1. Any person may apply to the office for
 a license to cultivate, process, distribute or dispense cannabis  within
 this  state  for sale. Such application shall be in writing and verified
 and shall contain such information as the  office  shall  require.  Such
 application  shall  be  accompanied  by  a check or draft for the amount
 required by this article for such license. If the office  shall  approve
 the  application,  it  shall  issue  a  license in such form as shall be
 determined by its rules. Such license shall contain a description of the
 licensed premises and in form and in substance shall be a license to the
 person therein specifically designated to cultivate, process, distribute
 or dispense cannabis in the premises therein specifically licensed.
   2. Except as otherwise provided in this article,  a  separate  license
 shall  be  required  for each facility at which cultivation, processing,
 distribution or retail dispensing is conducted.
   3. An applicant shall not be denied a license under this article based
 solely on a conviction for a violation of article two hundred twenty  or
 section  240.36  of the penal law, prior to the date article two hundred
 twenty-one of the penal law took effect, or a conviction for a violation
 of article two hundred twenty-one of the penal law after  the  effective
 date of this chapter.
   §  62.  Information  to be requested in applications for licenses.  1.
 The office shall have the authority to prescribe the manner and form  in
 which an application must be submitted to the office for licensure under
 this article.
   2.  The executive director is authorized to adopt regulations, includ-
 ing by emergency rule, establishing information which must  be  included
 on an application for licensure under this article. Such information may
 include, but is not limited to:  information about the applicant's iden-
 tity,  including  racial  and ethnic diversity; ownership and investment

 S. 1509--A                         127                        A. 2009--A
 
 information, including the corporate structure; evidence of  good  moral
 character,  including the submission of fingerprints by the applicant to
 the division of criminal justice services; information about  the  prem-
 ises  to  be  licensed;  financial statements; and any other information
 prescribed by in regulation.
   3. All license applications shall be signed by the  applicant  (if  an
 individual), by a managing partner (if a limited liability corporation),
 by an officer (if a corporation), or by all partners (if a partnership).
 Each  person  signing  such  application shall verify it or affirm it as
 true under the penalties of perjury.
   4. All license or permit applications shall be accompanied by a check,
 draft or other forms of payment as the office may require  or  authorize
 in the amount required by this article for such license or permit.
   5.  If there be any change, after the filing of the application or the
 granting of a license, in any of the facts required to be set  forth  in
 such application, a supplemental statement giving notice of such change,
 cost and source of money involved in the change, duly verified, shall be
 filed  with  the office within ten days after such change. Failure to do
 so shall, if willful and deliberate, be  cause  for  revocation  of  the
 license.
   6. In giving any notice, or taking any action in reference to a regis-
 tered  organization  or  licensee of a licensed premises, the office may
 rely upon the information furnished  in  such  application  and  in  any
 supplemental  statement connected therewith, and such information may be
 presumed to be correct, and shall be binding upon a registered organiza-
 tions, licensee or licensed premises  as  if  correct.  All  information
 required  to be furnished in such application or supplemental statements
 shall be deemed material in any prosecution for perjury, any  proceeding
 to  revoke,  cancel or suspend any license, and in the office's determi-
 nation to approve or deny the license.
   7. The office may, in its discretion,  waive  the  submission  of  any
 category  of  information  described in this section for any category of
 license or permit, provided that it shall not be permitted to waive  the
 requirement  for  submission  of any such category of information solely
 for an individual applicant or applicants.
   § 63. Fees. 1. The office shall have the authority  to  charge  appli-
 cants  for licensure under this article a non-refundable application fee
 and/or to auction licenses to bidders determined by  the  office  to  be
 qualified  for such licensure based on the selection criteria in section
 sixty-four of this article. Such fee may be based on the type of  licen-
 sure  sought, cultivation and/or production volume, or any other factors
 deemed reasonable and appropriate by the office to  achieve  the  policy
 and purpose of this chapter.
   2.  The office shall have the authority to charge licensees a biennial
 license fee. Such fee shall be based on the amount  of  cannabis  to  be
 cultivated,  processed,  distributed and/or dispensed by the licensee or
 the gross annual receipts of the licensee for the previous license peri-
 od, and any other factors  deemed  reasonable  and  appropriate  by  the
 office.
   §  64.  Selection  criteria.   1. The executive director shall develop
 regulations for determining whether or not an applicant should be grant-
 ed the privilege of an adult-use cannabis license,  based  on,  but  not
 limited to, the following criteria:
   (a)  the  applicant will be able to maintain effective control against
 the illegal diversion of cannabis;

 S. 1509--A                         128                        A. 2009--A
 
   (b) the applicant will be able to comply  with  all  applicable  state
 laws and regulations;
   (c)  the  applicant  and  its officers are ready, willing, and able to
 properly carry on the activities for which a license is sought;
   (d) the applicant possesses or has the right to use  sufficient  land,
 buildings,  and equipment to properly carry on the activity described in
 the application;
   (e) it is in the public interest that such license be granted,  taking
 into consideration, but not limited to, the following criteria:
   (i)  that  it  is a privilege, and not a right, to cultivate, process,
 distribute, and sell cannabis;
   (ii) the number, classes, and character of other licenses in proximity
 to the location and in the particular municipality or subdivision there-
 of;
   (iii) evidence that all  necessary  licenses  and  permits  have  been
 obtained from the state and all other governing bodies;
   (iv)  effect  of  the  grant of the license on pedestrian or vehicular
 traffic, and parking, in proximity to the location;
   (v) the existing noise level at the location and any increase in noise
 level that would be generated by the proposed premises;
   (vi) the history of violations under the  alcoholic  beverage  control
 law  or  the  cannabis  law  at  the location, as well as any pattern of
 violations under the alcoholic beverage control law or the cannabis law,
 and reported criminal activity at the proposed premises;
   (vii) the effect on the production, price and availability of cannabis
 and cannabis products; and
   (viii) any other factors specified by law or regulation that are rele-
 vant to determine that granting a license would promote  public  conven-
 ience and advantage and the public interest of the community;
   (f)  the applicant and its managing officers are of good moral charac-
 ter and do not  have  an  ownership  or  controlling  interest  in  more
 licenses or permits than allowed by this chapter;
   (g)  the  applicant  has  entered  into a labor peace agreement with a
 bona-fide labor organization that is actively engaged in representing or
 attempting to represent the applicant's employees, and  the  maintenance
 of  such  a labor peace agreement shall be an ongoing material condition
 of licensure. In evaluating applications from entities with  twenty-five
 or more employees, the office shall give priority to applicants that are
 a  party  to  a  collective  bargaining agreement with a bona-fide labor
 organization in New York or in another state, and uses  union  labor  to
 construct its licensed facility;
   (h)  the  applicant  will contribute to communities, the workforce and
 people disproportionately harmed by cannabis law enforcement;
   (i) if the application is for an  adult-use  cultivator  license,  the
 environmental impact of the facility to be licensed; and
   (j)  the applicant satisfies any other conditions as determined by the
 executive director.
   2. If the executive director  is  not  satisfied  that  the  applicant
 should  be  issued  a  license,  the executive director shall notify the
 applicant in writing of the specific reason or reasons for denial.
   3. The executive director shall have authority and sole discretion  to
 determine the number of licenses issued pursuant to this article.
   §  65.  Limitations of licensure; duration.  1. No license of any kind
 may be issued to a person under the age of twenty-one years,  nor  shall
 any licensee employ anyone under the age of twenty-one years.

 S. 1509--A                         129                        A. 2009--A
 
   2.  No  person shall sell, deliver, or give away or cause or permit or
 procure to be sold, delivered or given away any cannabis to any  person,
 actually  or  apparently, under the age of twenty-one years, any visibly
 intoxicated person, or any habitually intoxicated  person  known  to  be
 such  by  the  person  authorized  to  manufacture, traffic, or sell any
 cannabis.
   3. The office shall have the authority  to  limit,  by  canopy,  plant
 count,  square footage or other means, the amount of cannabis allowed to
 be grown, processed, distributed or sold by a licensee.
   4. All licenses under this article shall expire two  years  after  the
 date of issue.
   § 66. License renewal.  1. Each license, issued pursuant to this arti-
 cle,  may  be renewed upon application therefore by the licensee and the
 payment of the fee for such license as prescribed by  this  article.  In
 the  case of applications for renewals, the office may dispense with the
 requirements of such statements as it deems unnecessary in view of those
 contained in the application made for the original license, but  in  any
 event  the  submission  of photographs of the licensed premises shall be
 dispensed with, provided the applicant for such  renewal  shall  file  a
 statement  with  the  office to the effect that there has been no alter-
 ation of such premises since the original license was issued. The office
 may make such rules as it deems necessary, not  inconsistent  with  this
 chapter, regarding applications for renewals of licenses and permits and
 the time for making the same.
   2.  Each  applicant  must  submit  to  the office documentation of the
 racial, ethnic, and gender diversity of the  applicant's  employees  and
 owners  prior  to  a  license being renewed. In addition, the office may
 create a social responsibility framework agreement and make  the  adher-
 ence to such agreement a conditional requirement of license renewal.
   3.  The  office  shall provide an application for renewal of a license
 issued under this article not less than ninety days prior to the expira-
 tion of the current license.
   4. The office may only issue a renewal license  upon  receipt  of  the
 prescribed  renewal  application  and renewal fee from a licensee if, in
 addition to the criteria in this section, the licensee's license is  not
 under suspension and has not been revoked.
   5.  Each  applicant must maintain a labor peace agreement with a bona-
 fide labor organization that is  actively  engaged  in  representing  or
 attempting to represent the applicant's employees and the maintenance of
 such  a  labor peace agreement shall be an ongoing material condition of
 licensure.
   § 67. Amendments; changes in ownership and  organizational  structure.
 1. Licenses issued pursuant to this article shall specify:
   (a) the name and address of the licensee;
   (b) the activities permitted by the license;
   (c)  the  land,  buildings  and  facilities  that  may be used for the
 licensed activities of the licensee;
   (d) a unique license number issued by the office to the licensee; and
   (e) such other information as the executive director shall deem neces-
 sary to assure compliance with this chapter.
   2. Upon application of a licensee to the  office,  a  license  may  be
 amended  to  allow  the licensee to relocate within the state, to add or
 delete licensed activities or facilities, or to amend the  ownership  or
 organizational structure of the entity that is the licensee. The fee for
 such amendment shall be two hundred fifty dollars.

 S. 1509--A                         130                        A. 2009--A
 
   3.  A  license shall become void by a change in ownership, substantial
 corporate change or location without prior written approval of the exec-
 utive director. The executive director may promulgate regulations allow-
 ing for certain types of changes in ownership without the need for prior
 written approval.
   4.  For purposes of this section, "substantial corporate change" shall
 mean:
   (a) for a corporation, a change of eighty percent or more of the offi-
 cers and/or directors, or a transfer of eighty percent or more of  stock
 of such corporation, or an existing stockholder obtaining eighty percent
 or more of the stock of such corporation; or
   (b)  for  a  limited  liability company, a change of eighty percent or
 more of the managing members of the company, or  a  transfer  of  eighty
 percent  or  more  of ownership interest in said company, or an existing
 member obtaining a cumulative of eighty percent or more of the ownership
 interest in said company.
   § 68. Adult-use cultivator license.    1.  An  adult-use  cultivator's
 license  shall  authorize  the  acquisition, possession, cultivation and
 sale of cannabis from the licensed premises of the adult-use  cultivator
 by  such  licensee to duly licensed processors in this state. The execu-
 tive director may  establish  regulations  allowing  licensed  adult-use
 cultivators  to  perform certain types of minimal processing without the
 need for an adult-use processor license.
   2. For purposes of this section, cultivation shall include, but not be
 limited to, the planting, growing, cloning, harvesting, drying,  curing,
 grading and trimming of cannabis.
   3.  A  person holding an adult-use cultivator's license may apply for,
 and obtain, one processor's license and one distributor's license.
   4. A person holding an adult-use cultivator's  license  may  not  also
 hold  a retail dispensary license pursuant to this article and no adult-
 use cannabis cultivator  shall  have  a  direct  or  indirect  interest,
 including  by stock ownership, interlocking directors, mortgage or lien,
 personal or real property, or any other means, in any premises  licensed
 as  an  adult-use cannabis retail dispensary or in any business licensed
 as an adult-use cannabis retail dispensary pursuant to this article.
   5. A person holding an adult-use cultivator's license may not  hold  a
 license  to  distribute  cannabis under this article unless the licensed
 cultivator is also licensed as a processor under this article.
   6. No person may have a direct or indirect  financial  or  controlling
 interest  in  more than one adult-use cultivator license issued pursuant
 to this chapter.
   7. The executive director shall have the authority to issue microbusi-
 ness cultivator licenses, allowing microbusiness licensees to cultivate,
 process, and distribute adult-use cannabis direct to  licensed  cannabis
 retailers,  under a single license.  The executive director shall estab-
 lish through regulation a production limit of total cannabis cultivated,
 processed  and/or  distributed  annually  for  microbusiness  cultivator
 licenses.
   §  69.  Adult-use  processor license.   1. A processor's license shall
 authorize the acquisition, possession, processing and sale  of  cannabis
 from  the licensed premises of the adult-use cultivator by such licensee
 to duly licensed distributors.
   2. For purposes of this section, processing shall include, but not  be
 limited  to, blending, extracting, infusing, packaging, labeling, brand-
 ing and otherwise making  or  preparing  cannabis  products.  Processing
 shall not include the cultivation of cannabis.

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   3. No processor shall be engaged in any other business on the premises
 to  be  licensed;  except  that  nothing contained in this chapter shall
 prevent a cannabis cultivator, cannabis processor, and cannabis distrib-
 utor from operating on the same premises and from a person  holding  all
 three licenses.
   4.  No  cannabis  processor licensee may hold more than three cannabis
 processor licenses.
   5. No adult-use cannabis processor shall have  a  direct  or  indirect
 interest, including by stock ownership, interlocking directors, mortgage
 or  lien, personal or real property, or any other means, in any premises
 licensed as an adult-use cannabis retail dispensary or in  any  business
 licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
 article.
   § 70. Adult-use cooperative license.  1. A cooperative  license  shall
 authorize  the acquisition, possession, cultivation, processing and sale
 from the licensed premises of the adult-use cooperative by such licensee
 to duly  licensed  distributors  and/or  retail  dispensaries;  but  not
 directly to cannabis consumers.
   2. To be licensed as an adult-use cooperative, the cooperative must:
   (i)  be  comprised  of residents of the state of New York as a limited
 liability company or limited liability partnership under the laws of the
 state, or an appropriate business structure as determined by the  execu-
 tive director;
   (ii)  at least one member of the cooperative must have filed a Federal
 Schedule F (Form 1040) for three of the past five years; and
   (iii) the cooperative must operate according to the seven  cooperative
 principles  published by the International Cooperative Alliance in nine-
 teen hundred ninety-five.
   3. No person shall be a member of more than one adult-use  cooperative
 licensed pursuant to this section.
   4.  No person or member of an adult-use cooperative license may have a
 direct or indirect  financial  or  controlling  interest  in  any  other
 adult-use cannabis license issued pursuant to this chapter.
   5.  No  adult-use cannabis cooperative shall have a direct or indirect
 interest, including by stock ownership, interlocking directors, mortgage
 or lien, personal or real property, or any other means, in any  premises
 licensed  as  an adult-use cannabis retail dispensary or in any business
 licensed as an adult-use cannabis retail  dispensary  pursuant  to  this
 article.
   6. The executive director shall promulgate regulations governing coop-
 erative  licenses,  including,  but not limited to, the establishment of
 canopy limits on the size and scope of cooperative licensees, and  other
 measures designed to incentivize the use and licensure of cooperatives.
   § 71. Adult-use distributor license.  1. A distributor's license shall
 authorize the acquisition, possession, distribution and sale of cannabis
 from the licensed premises of a licensed adult-use processor, microbusi-
 ness cultivator, or registered organization authorized to sell adult-use
 cannabis, to duly licensed retail dispensaries.
   2. No distributor shall have a direct or indirect economic interest in
 any adult-use retail dispensary licensed pursuant to this article, or in
 any registered organization registered pursuant to article three of this
 chapter.  This  restriction shall not prohibit a registered organization
 authorized pursuant to section forty of this chapter, from being granted
 licensure by the office to distribute adult-use cannabis products culti-
 vated and processed by the registered  organization  to  the  registered
 organization's own licensed adult-use retail dispensaries.

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   3. Nothing in subdivision two of this section shall prevent a distrib-
 utor  from charging an appropriate fee for the distribution of cannabis,
 including based on the volume of cannabis distributed.
   §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
 license shall authorize the acquisition, possession and sale of cannabis
 from the licensed premises of the retail dispensary by such licensee  to
 cannabis consumers.
   2.  No  person  may have a direct or indirect financial or controlling
 interest in more than three retail dispensary licenses  issued  pursuant
 to this chapter. This restriction shall not prohibit a registered organ-
 ization,  authorized  pursuant  to  section  forty of this chapter, from
 being granted licensure by the office  to  sell  adult-use  cannabis  at
 locations previously registered by the department of health and in oper-
 ation  as  of  April first, two thousand nineteen; subject to any condi-
 tions, limitations or restrictions established by the office.
   3. No person holding a retail dispensary  license  may  also  hold  an
 adult-use  cultivation, processor, microbusiness cultivator, cooperative
 or distributor license pursuant to this article.
   4. No retail license shall be granted for  any  premises,  unless  the
 applicant  shall be the owner thereof, or shall be in possession of said
 premises under a lease, management agreement or other  agreement  giving
 the applicant control over the premises, in writing, for a term not less
 than the license period.
   5.  No  premises  shall  be licensed to sell cannabis products, unless
 said premises shall be located in a store,  the  principal  entrance  to
 which  shall  be from the street level and located on a public thorough-
 fare in premises which may be occupied, operated or conducted for  busi-
 ness,  trade  or  industry  or  on an arcade or sub-surface thoroughfare
 leading to a railroad terminal.
   6. No cannabis retail license shall be granted for any premises  where
 a  licensee  would  not  be allowed to sell at retail for consumption of
 alcohol off the premises based on its proximity to a  building  occupied
 exclusively  as  a  school,  church, synagogue or other place of worship
 pursuant to the provisions of section one hundred five  of  the  alcohol
 beverage control law.
   §  73.  Notification to municipalities of adult-use retail dispensary.
 1. Not less than thirty days nor more  than  two  hundred  seventy  days
 before  filing  an  application  for  licensure as an adult-use cannabis
 retail dispensary, an applicant shall notify the municipality  in  which
 the  premises  is  located  of  such  applicant's intent to file such an
 application.
   2. Such notification shall be made to the clerk of the  village,  town
 or  city,  as  the  case  may  be,  wherein the premises is located. For
 purposes of this section:
   (a) notification need only be given to the clerk of a village when the
 premises is located within the boundaries of the village, town or  city;
 and
   (b)  in the city of New York, the community board established pursuant
 to section twenty-eight hundred of the New York city charter with juris-
 diction over the area in which the premises is located shall be  consid-
 ered the appropriate public body to which notification shall be given.
   3. Such notification shall be made in such form as shall be prescribed
 by the rules of the office.
   4.  A  municipality may express an opinion for or against the granting
 of such application. Any such opinion shall be deemed part of the record

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 upon which the office makes its  determination  to  grant  or  deny  the
 application.
   5.  Such  notification  shall  be  made by: (a) certified mail, return
 receipt requested; (b) overnight delivery service with proof of mailing;
 or (c) personal service upon the  offices  of  the  clerk  or  community
 board.
   6.  The office shall require such notification to be on a standardized
 form that can be obtained on the internet or from the  office  and  such
 notification to include:
   (a)  the trade name or "doing business as" name, if any, of the estab-
 lishment;
   (b) the full name of the applicant;
   (c) the street address  of  the  establishment,  including  the  floor
 location or room number, if applicable;
   (d)  the  mailing  address of the establishment, if different than the
 street address;
   (e) the name, address and telephone number of the attorney  or  repre-
 sentative of the applicant, if any;
   (f) a statement indicating whether the application is for:
   (i) a new establishment;
   (ii) a transfer of an existing licensed business;
   (iii) a renewal of an existing license; or
   (iv) an alteration of an existing licensed premises;
   (g)  if  the  establishment is a transfer or previously licensed prem-
 ises, the name of the old establishment and such establishment's  regis-
 tration or license number;
   (h)  in the case of a renewal or alteration application, the registra-
 tion or license number of the applicant; and
   (i) the type of license.
   §  74.  On-site  consumption  license;  provisions  governing  on-site
 consumption  licenses.  1. No licensed adult-use cannabis retail dispen-
 sary shall be granted a cannabis on-site  consumption  license  for  any
 premises,  unless  the applicant shall be the owner thereof, or shall be
 in possession of said premises under a lease, in writing, for a term not
 less than the license period except,  however,  that  such  license  may
 thereafter  be renewed without the requirement of a lease as provided in
 this section. This subdivision shall not apply to premises  leased  from
 government  agencies,  as  defined  under  subdivision twenty of section
 three of this chapter; provided, however, that the appropriate  adminis-
 trator  of such government agency provides some form of written documen-
 tation regarding the terms of occupancy under  which  the  applicant  is
 leasing said premises from the government agency for presentation to the
 office  at the time of the license application. Such documentation shall
 include the terms of occupancy between the applicant and the  government
 agency, including, but not limited to, any short-term leasing agreements
 or written occupancy agreements.
   2. No adult-use cannabis retail dispensary shall be granted a cannabis
 on-site  consumption  license for any premises where a license would not
 be allowed to sell at retail for consumption of alcohol on the  premises
 based  on  its proximity to a building occupied exclusively as a school,
 church, synagogue or other place of worship pursuant to  the  provisions
 of section one hundred five of the alcoholic beverage control law.
   3.  The office may consider any or all of the following in determining
 whether public convenience and advantage and the public interest will be
 promoted by the granting of a license for an on-site  cannabis  consump-
 tion at a particular location:

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   (a)  that  it  is a privilege, and not a right, to cultivate, process,
 distribute, and sell cannabis;
   (b)  the number, classes, and character of other licenses in proximity
 to the location and in the particular municipality or subdivision there-
 of;
   (c) evidence  that  all  necessary  licenses  and  permits  have  been
 obtained from the state and all other governing bodies;
   (d)  effect  of  the  grant  of the license on pedestrian or vehicular
 traffic, and parking, in proximity to the location;
   (e) the existing noise level at the location and any increase in noise
 level that would be generated by the proposed premises;
   (f) the history of violations under the alcoholic beverage control law
 or this chapter at the location, as well as any  pattern  of  violations
 under  the  alcoholic beverage control law or this chapter, and reported
 criminal activity at the proposed premises; and
   (g) any other factors specified by law or regulation that are relevant
 to determine that granting a license would  promote  public  convenience
 and advantage and the public interest of the community;
   4.  If  the  office  shall  disapprove  an  application for an on-site
 consumption license, it shall state and file in its offices the  reasons
 therefor  and  shall  notify  the  applicant thereof. Such applicant may
 thereupon apply to the office for a review of such action in a manner to
 be prescribed by the rules of the office.
   5. No adult-use cannabis on-site consumption licensee shall keep  upon
 the  licensed  premises  any  adult-use  cannabis  products except those
 purchased from  a  licensed  distributor,  microbusiness  cultivator  or
 registered  organization authorized to sell adult-use cannabis, and only
 in containers approved by the office. Such containers shall have affixed
 thereto such labels as may be required by the rules of the office.    No
 cannabis  retail  licensee  for on-site consumption shall reuse, refill,
 tamper with, adulterate, dilute or fortify the contents of any container
 of cannabis products as received from the manufacturer or distributor.
   6. No cannabis on-site consumption licensee  shall  sell,  deliver  or
 give  away, or cause or permit or procure to be sold, delivered or given
 away any cannabis for consumption  on  the  premises  where  sold  in  a
 container or package containing more than one gram of cannabis.
   7.  Except  where  a  permit  to do so is obtained pursuant to section
 405.10 of the penal law, no cannabis on-site consumption licensee  shall
 suffer,  permit,  or promote an event on its premises wherein any person
 shall use, explode, or cause to explode, any fireworks  or  other  pyro-
 technics  in  a building as defined in paragraph e of subdivision one of
 section 405.10 of the penal law, that is  covered  by  such  license  or
 possess  such fireworks or pyrotechnics for such purpose. In addition to
 any other penalty provided by law, a violation of this subdivision shall
 constitute an adequate ground for instituting a proceeding  to  suspend,
 cancel,  or  revoke  the  license of the violator in accordance with the
 applicable procedures specified in this chapter;  provided  however,  if
 more than one licensee is participating in a single event, upon approval
 by the office, only one licensee must obtain such permit.
   8.  No  premises  licensed  to  sell  adult-use  cannabis  for on-site
 consumption under this chapter shall be permitted to have any opening or
 means of entrance or  passageway  for  persons  or  things  between  the
 licensed premises and any other room or place in the building containing
 the  licensed  premises,  or  any adjoining or abutting premises, unless
 ingress and egress is restricted by an employee, agent of the  licensee,

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 or  other  method  approved  by  the office of controlling access to the
 facility.
   9.  Each cannabis on-site consumption licensee shall keep and maintain
 upon the licensed premises, adequate records of all transactions involv-
 ing the business transacted by such licensee which shall show the amount
 of cannabis products, in an applicable metric measurement, purchased  by
 such  licensee  together  with  the names, license numbers and places of
 business of the persons from whom the same were  purchased,  the  amount
 involved  in  such  purchases, as well as the sales of cannabis products
 made by such licensee. The office is  hereby  authorized  to  promulgate
 rules  and  regulations  permitting an on-site licensee operating two or
 more premises separately licensed to sell cannabis products for  on-site
 consumption  to  inaugurate or retain in this state methods or practices
 of centralized  accounting,  bookkeeping,  control  records,  reporting,
 billing,  invoicing or payment respecting purchases, sales or deliveries
 of cannabis products, or methods and practices of centralized receipt or
 storage of cannabis products within this state  without  segregation  or
 earmarking  for  any  such  separately  licensed premises, wherever such
 methods and  practices  assure  the  availability,  at  such  licensee's
 central  or main office in this state, of data reasonably needed for the
 enforcement of  this  chapter.  Such  records  shall  be  available  for
 inspection by any authorized representative of the office.
   10. All retail licensed premises shall be subject to inspection by any
 peace  officer,  acting pursuant to his or her special duties, or police
 officer and by the duly authorized representatives of the office, during
 the hours when the said premises are open for the transaction  of  busi-
 ness.
   11. A cannabis on-site consumption licensee shall not provide cannabis
 products  to any person under the age of twenty-one or to anyone visibly
 intoxicated.
   § 75. Record keeping and tracking. 1. The executive director shall, by
 regulation, require each licensee pursuant to this article to adopt  and
 maintain  security,  tracking,  record  keeping,  record  retention  and
 surveillance systems, relating to all cannabis at every stage of acquir-
 ing, possession, manufacture, sale, delivery, transporting, or  distrib-
 uting by the licensee, subject to regulations of the executive director.
   2.  Every  licensee shall keep and maintain upon the licensed premises
 adequate books and records of all transactions  involving  the  licensee
 and  sale  of  its products, which shall include, but is not limited to,
 all information required by any rules promulgated by the office.
   3. Each sale shall be recorded separately on a numbered invoice, which
 shall have printed thereon the number, the name  of  the  licensee,  the
 address  of  the  licensed  premises,  and  the  current license number.
 Licensed producers shall deliver to  the  licensed  distributor  a  true
 duplicate  invoice  stating  the  name and address of the purchaser, the
 quantity purchased, description and the price  of  the  product,  and  a
 true,  accurate  and  complete  statement of the terms and conditions on
 which such sale is made.
   4. Such books, records and invoices shall be kept for a period of five
 years and shall be available for inspection by any authorized  represen-
 tative of the office.
   5.  Each  adult-use cannabis retail dispensary and on-site consumption
 licensee shall keep and maintain upon the  licensed  premises,  adequate
 records  of  all  transactions involving the business transacted by such
 licensee which shall show the amount of cannabis, in  weight,  purchased
 by  such licensee together with the names, license numbers and places of

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 business of the persons from whom the same were  purchased,  the  amount
 involved  in  such  purchases,  as well as the sales of cannabis made by
 such licensee.
   §  76. Inspections and ongoing requirements. All licensed or permitted
 premises, regardless of the  type  of  premises,  shall  be  subject  to
 inspection  by the office, by the duly authorized representatives of the
 office, by any peace officer acting  pursuant  to  his  or  her  special
 duties,  or by a police officer, during the hours when the said premises
 are open for the transaction of business. The office shall make  reason-
 able  accommodations  so  that  ordinary business is not interrupted and
 safety and security procedures are not compromised by the inspection.  A
 person who holds a license or permit must make himself or herself, or an
 agent  thereof, available and present for any inspection required by the
 office.  Such inspection may include, but is not  limited  to,  ensuring
 compliance by the licensee or permittee with all other applicable build-
 ing codes, fire, health, safety, and governmental regulations, including
 at the municipal, county, and state level.
   §  77.  Adult-use  cultivators,  processors  or distributors not to be
 interested in retail dispensaries.  1. It shall be unlawful for a culti-
 vator, processor, cooperative or distributor licensed under this article
 to:
   (a) be interested directly or indirectly in  any  premises  where  any
 cannabis product is sold at retail; or in any business devoted wholly or
 partially  to the sale of any cannabis product at retail by stock owner-
 ship, interlocking directors, mortgage or lien or any personal  or  real
 property, or by any other means.
   (b)  make,  or cause to be made, any loan to any person engaged in the
 manufacture or sale of any cannabis product at wholesale or retail.
   (c) make any gift or  render  any  service  of  any  kind  whatsoever,
 directly  or indirectly, to any person licensed under this chapter which
 in the judgment of the office may tend to  influence  such  licensee  to
 purchase the product of such cultivator or processor or distributor.
   (d)  enter  into  any  contract  with any retail licensee whereby such
 licensee agrees to confine his sales to cannabis  products  manufactured
 or  sold  by  one or more such cultivator or processors or distributors.
 Any such contract shall be void and subject the licenses of all  parties
 concerned to revocation for cause.
   2.  The  provisions  of  this  section shall not prohibit a registered
 organization authorized pursuant to section forty of this chapter,  from
 cultivating,  processing,  distributing  and  selling adult-use cannabis
 under this article, at facilities wholly  owned  and  operated  by  such
 registered  organization,  subject  to  any  conditions,  limitations or
 restrictions established by the office.
   3. The office shall have the power to create rules and regulations  in
 regard to this section.
   §  78.  Packaging  and labeling of adult-use cannabis products. 1. The
 office is hereby authorized to promulgate rules and regulations  govern-
 ing  the  packaging and labeling of cannabis products, sold or possessed
 for sale in New York state.
   2. Such regulations shall include, but not be  limited  to,  requiring
 that:
   (a)  packaging  meets  requirements  similar  to  the  federal "poison
 prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
   (b) all cannabis-infused products shall have a separate packaging  for
 each serving;

 S. 1509--A                         137                        A. 2009--A
 
   (c)  prior  to  delivery  or sale at a retailer, cannabis and cannabis
 products shall be labeled and placed in  a  resealable,  child-resistant
 package; and
   (d) packages and labels shall not be made to be attractive to minors.
   3.  Such  regulations shall include requiring labels warning consumers
 of any potential impact on human health resulting from  the  consumption
 of  cannabis products that shall be affixed to those products when sold,
 if such labels are deemed warranted by the office.
   4. Such rules and regulations shall establish methods  and  procedures
 for  determining  serving  sizes  for  cannabis-infused products, active
 cannabis concentration per serving size,  and  number  of  servings  per
 container.  Such regulations shall also require a nutritional fact panel
 that incorporates data regarding serving sizes and potency thereof.
   5. The packaging, sale, or possession by any licensee of any  cannabis
 product  not labeled or offered in conformity with rules and regulations
 promulgated in accordance with this section shall  be  grounds  for  the
 imposition  of a fine, and/or the suspension, revocation or cancellation
 of a license.
   § 79. Laboratory testing. 1. Every  processor  of  adult-use  cannabis
 shall  contract  with  an  independent  laboratory permitted pursuant to
 section one hundred twenty-nine of this chapter, to  test  the  cannabis
 products it produces pursuant to rules and regulations prescribed by the
 office.  The executive director may assign an approved testing laborato-
 ry, which the processor of adult-use cannabis must use.
   2.  Adult-use  cannabis  processors shall make laboratory test reports
 available to licensed  distributors  and  retail  dispensaries  for  all
 cannabis products manufactured by the processor.
   3.  Licensed retail dispensaries shall maintain accurate documentation
 of laboratory test reports for each cannabis product offered for sale to
 cannabis consumers. Such documentation shall be made publicly  available
 by the licensed retail dispensary.
   4.  Onsite  laboratory  testing  by licensees is permissible; however,
 such testing shall not be certified by the office and  does  not  exempt
 the  licensee  from  the  requirements of quality assurance testing at a
 testing laboratory pursuant to this section.
   5. An owner of a cannabis laboratory testing permit shall not  hold  a
 license  in  any other category within this article and shall not own or
 have ownership interest in a registered organization registered pursuant
 to article three of this chapter.
   6. The office shall have the authority to require any  licensee  under
 this  article  to  submit  cannabis  or cannabis products to one or more
 independent laboratories for testing.
   § 80. Provisions governing the cultivation and processing of adult-use
 cannabis. 1. Cultivation of cannabis must not be visible from  a  public
 place by normal unaided vision.
   2.  No  cultivator  or  processor of adult-use cannabis shall sell, or
 agree to sell or deliver in the state any cannabis products, as the case
 may be, except in sealed containers containing quantities in  accordance
 with  size  standards  pursuant  to  rules  adopted  by the office. Such
 containers shall have affixed thereto such labels as may be required  by
 the rules of the office.
   3.  No  cultivator or processor of adult-use cannabis shall furnish or
 cause to be furnished to any licensee, any exterior  or  interior  sign,
 printed,  painted,  electric  or  otherwise, except as authorized by the
 office. The office may make such rules as it deems  necessary  to  carry
 out the purpose and intent of this subdivision.

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   4.  Cultivators  of  adult-use cannabis shall only use pesticides that
 are registered by the department of environmental conservation  or  that
 specifically  meet  the  United  States  environmental protection agency
 registration exemption criteria for minimum risk pesticides, and only in
 compliance  with  regulations,  standards  and  guidelines issued by the
 department of environmental conservation.
   5. No cultivator or processor of adult-use  cannabis  shall  transport
 cannabis  products  in any vehicle owned and operated or hired and oper-
 ated by such cultivator or processor, unless there shall be attached  to
 or  inscribed  upon  both sides of such vehicle a sign, showing the name
 and address of the licensee, together with  the  following  inscription:
 "New York State Cannabis Cultivator (or Processor) License No. _____" in
 uniform  letters  not less than three and one-half inches in height.  In
 lieu of such sign a cultivator or processor may have in the cab of  such
 vehicle  a photostatic copy of its current license issued by the office,
 and such copy duly authenticated by the office.
   6. No cultivator or processor of adult-use cannabis shall deliver  any
 cannabis  products, except in vehicles owned and operated by such culti-
 vator, processor, or hired and operated by such cultivator or  processor
 from  a  trucking  or transportation company registered with the office,
 and shall only make deliveries at the licensed premises of the  purchas-
 er.
   7.  No  cultivator  or  processor  of adult-use cannabis, including an
 adult-use cannabis cooperative or microbusiness  cultivator,  may  offer
 any  incentive,  payment  or other benefit to a licensed cannabis retail
 dispensary in return for carrying the cultivator, processor, cooperative
 or microbusiness cultivator's products, or preferential shelf placement.
   8. All cannabis products shall be processed in  accordance  with  good
 manufacturing processes, pursuant to Part 111 of Title 21 of the Code of
 Federal  Regulations,  as  may  be modified by the executive director in
 regulation.
   9. No processor of adult-use cannabis shall produce any product which,
 in the discretion of the office, is designed to appeal to  anyone  under
 the age of twenty-one years.
   10. The use or integration of alcohol or nicotine in cannabis products
 is strictly prohibited.
   § 81. Provisions governing the distribution of adult-use cannabis.  1.
 No  distributor  shall  sell,  or  agree to sell or deliver any cannabis
 products, as the case may be, in any container, except in a sealed pack-
 age. Such containers shall have affixed thereto such labels  as  may  be
 required by the rules of the office.
   2. No distributor shall deliver any cannabis products, except in vehi-
 cles  owned  and  operated by such distributor, or hired and operated by
 such distributor from a trucking or  transportation  company  registered
 with the office, and shall only make deliveries at the licensed premises
 of the purchaser.
   3.  Each  distributor  shall keep and maintain upon the licensed prem-
 ises, adequate books and records of all transactions involving the busi-
 ness transacted by such distributor, which  shall  show  the  amount  of
 cannabis products purchased by such distributor together with the names,
 license numbers and places of business of the persons from whom the same
 was  purchased and the amount involved in such purchases, as well as the
 amount of cannabis products sold by such distributor together  with  the
 names,  addresses,  and  license  numbers  of such purchasers. Each sale
 shall be recorded separately on a numbered  invoice,  which  shall  have
 printed thereon the number, the name of the licensee, the address of the

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 licensed  premises,  and  the  current  license number. Such distributor
 shall deliver to the purchaser a true duplicate invoice stating the name
 and address  of  the  purchaser,  the  quantity  of  cannabis  products,
 description  by  brands  and  the price of such cannabis products, and a
 true, accurate and complete statement of the  terms  and  conditions  on
 which  such sale is made. Such books, records and invoices shall be kept
 for a period of five years and shall be available for inspection by  any
 authorized representative of the office.
   4. No distributor shall furnish or cause to be furnished to any licen-
 see, any exterior or interior sign, printed, painted, electric or other-
 wise, unless authorized by the office.
   5.  No  distributor  shall  provide  any  discount, rebate or customer
 loyalty program to any licensed retailer, except as otherwise allowed by
 the office.
   6. The executive director  is  authorized  to  promulgate  regulations
 establishing  a  maximum  margin  for  which a distributor may mark up a
 cannabis product for sale to a retail dispensary. Any adult-use cannabis
 product sold by a distributor for more than the maximum  markup  allowed
 in regulation, shall be unlawful.
   7.  Each  distributor  shall keep and maintain upon the licensed prem-
 ises, adequate books and records to demonstrate the distributor's actual
 cost of doing business, using accounting standards and methods regularly
 employed in the determination of costs for the purpose of federal income
 tax reporting, for the total operation  of  the  licensee.  Such  books,
 records  and invoices shall be kept for a period of five years and shall
 be available for inspection by  any  authorized  representative  of  the
 office  for  use in determining the maximum markup allowed in regulation
 pursuant to subdivision six of this section.
   § 82. Provisions governing adult-use cannabis retail dispensaries.  1.
 No cannabis retail licensee shall sell, deliver, or give away  or  cause
 or permit or procure to be sold, delivered or given away any cannabis to
 any  person,  actually or apparently, under the age of twenty-one years,
 any visibly intoxicated person, or  any  habitually  intoxicated  person
 known to be such by the person authorized to sell, deliver, or give away
 any cannabis.
   2.  No  cannabis  retail  licensee  shall  sell more than one ounce of
 cannabis per cannabis consumer per day; nor  more  than  five  grams  of
 cannabis concentrate per cannabis consumer per day.
   3.  No  cannabis  retail  licensee shall sell alcoholic beverages, nor
 have or possess a license or permit to sell alcoholic beverages, on  the
 same premises where cannabis products are sold.
   4.  No  sign of any kind printed, painted or electric, advertising any
 brand shall be permitted on the exterior or interior of  such  premises,
 except by permission of the office.
   5.  No  cannabis  retail  licensee  shall sell or deliver any cannabis
 products to any person with knowledge of, or with  reasonable  cause  to
 believe,  that the person to whom such cannabis products are being sold,
 has acquired the same for the purpose of peddling  them  from  place  to
 place,  or of selling or giving them away in violation of the provisions
 of this chapter or in violation of the  rules  and  regulations  of  the
 office.
   6.  All  premises  licensed  under  this  section  shall be subject to
 inspection by any peace officer described in subdivision four of section
 2.10 of the criminal procedure law acting pursuant to his or her special
 duties, or police officer or any duly authorized representative  of  the

 S. 1509--A                         140                        A. 2009--A
 
 office,  during the hours when the said premises are open for the trans-
 action of business.
   7.  No cannabis retail licensee shall be interested, directly or indi-
 rectly, in any cultivator, processor or distributor licensed pursuant to
 this article, by stock ownership, interlocking  directors,  mortgage  or
 lien  on  any personal or real property or by any other means. Any lien,
 mortgage or other interest or estate, however, now held by such retailer
 on or in the personal or real property of such manufacturer or distribu-
 tor, which mortgage, lien, interest or estate was acquired on or  before
 December  thirty-first,  two  thousand  eighteen,  shall not be included
 within the provisions of this subdivision; provided, however, the burden
 of establishing the time of the accrual of the interest comprehended  by
 this  subdivision, shall be upon the person who claims to be entitled to
 the protection and exemption afforded hereby.
   8. No cannabis retail licensee shall make or cause to be made any loan
 to any person engaged in the cultivation, processing or distribution  of
 cannabis pursuant to this article.
   9.  Each  cannabis  retail  licensee shall designate the price of each
 item of cannabis by attaching to  or  otherwise  displaying  immediately
 adjacent  to  each  such  item displayed in the interior of the licensed
 premises where sales are made a price tag, sign or placard setting forth
 the price at which each such item is offered for sale therein.
   10. No person licensed to sell  cannabis  products  at  retail,  shall
 allow  or  permit  any  gambling,  or offer any gambling on the licensed
 premises, or allow or permit illicit drug activity on the licensed prem-
 ises. The use of the licensed premises or any part thereof for the  sale
 of lottery tickets, when duly authorized and lawfully conducted thereon,
 shall not constitute gambling within the meaning of this subdivision.
   11.  If  an  employee  of  a  cannabis retail licensee suspects that a
 cannabis consumer may  be  abusing  cannabis,  such  an  employee  shall
 encourage  such cannabis consumer to seek the help of a registered prac-
 titioner and become a certified patient. Cannabis retail licensees shall
 develop standard operating procedures and written materials for  employ-
 ees  to  utilize when consulting consumers for purposes of this subdivi-
 sion.
   12. The executive director is  authorized  to  promulgate  regulations
 governing  licensed  adult-use  dispensing facilities, including but not
 limited to, the hours of operation, size and location  of  the  licensed
 facility, potency and types of products offered and establishing a mini-
 mum  margin  for  which  a  retail  dispensary  must  markup  a cannabis
 product(s) before selling to a cannabis consumer. Any adult-use cannabis
 product sold by a retail dispensary for less  than  the  minimum  markup
 allowed in regulation, shall be unlawful.
   § 83. Adult-use cannabis advertising.  1. The office is hereby author-
 ized  to  promulgate  rules and regulations governing the advertising of
 licensed  adult-use  cannabis  cultivators,  processors,   cooperatives,
 distributors, retailers, and any cannabis products or services.
   2.  The office shall promulgate explicit rules prohibiting advertising
 that:
   (a) is false, deceptive, or misleading;
   (b) promotes overconsumption;
   (c) depicts consumption by children or other minors;
   (d) is designed in any way to appeal to children or other minors;
   (e) is within two hundred feet of the perimeter of a  school  grounds,
 playground, child care center, public park, or library;
   (f) is in public transit vehicles and stations;

 S. 1509--A                         141                        A. 2009--A
 
   (g) is in the form of an unsolicited internet pop-up;
   (h) is on publicly owned or operated property; or
   (i)  makes medical claims or promotes adult-use cannabis for a medical
 or wellness purpose.
   3. The office shall promulgate explicit rules prohibiting all  market-
 ing  strategies and implementation including, but not limited to, brand-
 ing, packaging, labeling, location of cannabis retailers, and advertise-
 ments that are designed to:
   (a) appeal to persons less then twenty-one years of age; or
   (b) disseminate false or misleading information to customers.
   4. The office shall promulgate explicit rules requiring that:
   (a) all advertisements and marketing accurately and  legibly  identify
 the licensee responsible for its content; and
   (b)  any  broadcast,  cable,  radio,  print and digital communications
 advertisements only be placed where the audience is reasonably  expected
 to  be  twenty-one  years  of  age  or older, as determined by reliable,
 up-to-date audience composition data.
   § 84. Minority,  women-owned  businesses  and  disadvantaged  farmers;
 incubator  program.  1. The office shall implement a social and economic
 equity plan and actively promote racial, ethnic,  and  gender  diversity
 when issuing licenses for adult-use cannabis related activities, includ-
 ing  by  prioritizing  consideration  of  applications by applicants who
 qualify as a minority and women-owned business or disadvantaged farmers.
 Such qualifications shall be determined by the office in regulation.
   2. The office shall create  a  social  and  economic  equity  plan  to
 promote  diversity in ownership and employment in the adult-use cannabis
 industry and ensure inclusion of:
   (a) minority-owned businesses;
   (b) women-owned businesses;
   (c) minority and women-owned businesses,  as  defined  in  subdivision
 five of this section; and
   (d)  disadvantaged  farmers,  as  defined  in subdivision five of this
 section.
   3. The social and  economic  equity  plan  shall  consider  additional
 criteria  in its licensing determinations. Under the social and economic
 equity plan, extra weight shall be given  to  applications  that  demon-
 strate that an applicant:
   (a)  is a member of a community group that has been disproportionately
 impacted by the enforcement of cannabis prohibition;
   (b) has an income lower than eighty percent of the  median  income  of
 the county in which the applicant resides; and
   (c) was convicted of a cannabis-related offense prior to the effective
 date of this chapter.
   4. The office shall also create an incubator program to provide direct
 support  to  social  and economic equity applicants after they have been
 granted licenses. The program shall provide direct support in  the  form
 of  counseling services, education, small business coaching, and compli-
 ance assistance.
   5. For the purposes of this section, the following  definitions  shall
 apply:
   (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
 including a sole proprietorship, partnership, limited liability  company
 or corporation that is:
   (i)  at  least  fifty-one  percent owned by one or more minority group
 members;

 S. 1509--A                         142                        A. 2009--A
 
   (ii) an enterprise in which such minority ownership is real,  substan-
 tial and continuing;
   (iii) an enterprise in which such minority ownership has and exercises
 the authority to control independently the day-to-day business decisions
 of the enterprise;
   (iv)  an  enterprise authorized to do business in this state and inde-
 pendently owned and operated; and
   (v) an enterprise that is a small business.
   (b) "minority group member" shall mean  a  United  States  citizen  or
 permanent resident alien who is and can demonstrate membership in one of
 the following groups:
   (i)  black  persons  having origins in any of the black African racial
 groups;
   (ii) Hispanic persons of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
 Central  or  South American of either Indian or Hispanic origin, regard-
 less of race;
   (iii) Native American or Alaskan native persons having origins in  any
 of the original peoples of North America; or
   (iv)  Asian  and Pacific Islander persons having origins in any of the
 far east countries, south east Asia,  the  Indian  subcontinent  or  the
 Pacific islands.
   (c) "women-owned business" shall mean a business enterprise, including
 a  sole proprietorship, partnership, limited liability company or corpo-
 ration that is:
   (i) at least fifty-one percent owned by  one  or  more  United  States
 citizens or permanent resident aliens who are women;
   (ii)  an  enterprise  in which the ownership interest of such women is
 real, substantial and continuing;
   (iii) an enterprise in which such women ownership  has  and  exercises
 the authority to control independently the day-to-day business decisions
 of the enterprise;
   (iv)  an  enterprise authorized to do business in this state and inde-
 pendently owned and operated; and
   (v) an enterprise that is a small business.
   (d) a firm owned by a minority group member who is also a woman may be
 defined as a minority-owned business, a women-owned business, or both.
   (e) "disadvantaged farmer" shall mean a New  York  state  resident  or
 business  enterprise,  including  a  sole  proprietorship,  partnership,
 limited liability company or corporation, that  has  reported  at  least
 two-thirds  of  its  federal  gross income as income from farming, in at
 least one of the past five preceding tax years, and who:
   (i) farms in a county that has greater than ten percent rate of pover-
 ty according to the latest U.S.  Census  Bureau's  American  Communities
 Survey;
   (ii)  has  been disproportionately impacted by low commodity prices or
 faces the loss of farmland through development or suburban sprawl; and
   (iii) meets any other qualifications as defined in regulation  by  the
 office.
   6.  The  office  shall actively promote applicants that foster racial,
 ethnic, and gender diversity in their workforce.
   7. Licenses issued to minority and women-owned businesses or under the
 social and economic equity plan shall  not  be  transferable  except  to
 qualified  minority  and  women-owned  businesses or social and economic
 equity applicants and only upon prior written approval of the  executive
 director.

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   8.  The  office shall collect demographic data on owners and employees
 in the adult-use cannabis industry and shall annually publish such data.
   §  85. Regulations.   The executive director shall make regulations to
 implement this article.
 
                                 ARTICLE 5
                               HEMP CANNABIS
 
 Section 90. Cannabinoid related hemp cannabis licensing.
         91.  Cannabinoid grower licenses.
         92.  Cannabinoid extractor license.
         93.  Cannabinoid license applications.
         94.  Information to be requested in applications for licenses.
         95.  Fees.
         96.  Selection criteria.
         97.  Limitations of licensure; duration.
         98.  License renewal.
         99.  Form of license.
         100. Amendments  to  license  and  duty  to  update  information
                submitted for licensing.
         101. Record keeping and tracking.
         102. Inspections and ongoing requirements.
         103. Packaging and labeling of hemp cannabis.
         104. Provisions  governing  the  growing  and extracting of hemp
         cannabis.
         105. Laboratory testing.
         106. Advertising.
         107. Research.
         108. Regulations.
   § 90. Cannabinoid related hemp cannabis licensing.   1. Persons  grow-
 ing,  processing,  extracting,  and/or  manufacturing  hemp  cannabis or
 producing hemp cannabis  products  distributed,  sold  or  marketed  for
 cannabinoid content and used or intended for human or animal consumption
 or  use,  shall  be required to obtain the following license or licenses
 from the office, depending upon the operation:
   (a) cannabinoid grower license and/or;
   (b) cannabinoid extractor license.
   2. Notwithstanding subsection one of this section, those persons grow-
 ing, processing or manufacturing food or  food  ingredients  from  hemp,
 which  food  or food ingredients are generally recognized as safe, shall
 be subject to regulation and/or  licensing  under  the  agriculture  and
 markets law.
   §  91. Cannabinoid grower licenses.  1. A cannabinoid grower's license
 authorizes the acquisition, possession, cultivation  and  sale  of  hemp
 cannabis grown or used for its cannabinoid content on the licensed prem-
 ises of the grower.
   2. A person holding a cannabinoid grower's license shall not sell hemp
 products  marketed,  distributed or sold for its cannabinoid content and
 intended for human consumption or use without also being licensed as  an
 extractor pursuant to this article.
   3.  Persons growing industrial hemp pursuant to article twenty-nine of
 the agriculture and markets law are not authorized to and shall not sell
 hemp cannabis for human or animal consumption or use, other than as food
 or a food ingredient that has  been  generally  recognized  as  safe  in
 accordance  with  the U.S. food and drug administration or determined by
 the state to be safe for human consumption as food or a food ingredient.

 S. 1509--A                         144                        A. 2009--A
 
   4. A person licensed under article twenty-nine of the agriculture  and
 markets  law  as  an  industrial hemp grower may apply for a cannabinoid
 grower's license provided that it can demonstrate to the office that its
 cultivation of industrial hemp  meets  all  the  requirements  for  hemp
 cannabis cultivated under a cannabinoid grower's license.
   §  92.  Cannabinoid  extractor  license.    1. A cannabinoid extractor
 license authorizes the licensee's  acquisition,  possession,  extraction
 and manufacture of hemp from a licensed cannabinoid grower for the proc-
 essing  of  hemp  cannabis  or  the production of hemp cannabis products
 marketed, distributed or  sold  for  cannabinoid  content  and  used  or
 intended for human or animal consumption or use.
   2.  No  cannabinoid extractor licensee shall engage in any other busi-
 ness on the licensed premises; except that  nothing  contained  in  this
 chapter  shall  prevent a cannabinoid extractor licensee from also being
 licensed as a cannabinoid grower on the same premises.
   3. Notwithstanding subdivisions one and two of this  section,  nothing
 shall  prevent  a cannabinoid extractor from manufacturing hemp products
 not used or intended for human or animal consumption or use.
   § 93. Cannabinoid license applications. 1. Persons shall apply  for  a
 cannabinoid  grower  license  and/or  a cannabinoid extractor license by
 submitting an application upon a form supplied by the office,  providing
 all  the  requested information, verified by the applicant or an author-
 ized representative of the applicant.
   2. A separate license shall be required for  each  facility  at  which
 growing or extracting is conducted.
   3.  Each application shall remit with its application the fee for each
 requested license.
   § 94. Information to be requested in applications for  licenses.    1.
 The  office shall have the authority to prescribe the manner and form in
 which an application must be submitted to the office for licensure under
 this article.
   2. The executive director is authorized to adopt regulations,  includ-
 ing  by  emergency rule, establishing information which must be included
 on an application for licensure under this article. Such information may
 include, but is not limited to:  information about the applicant's iden-
 tity, including racial and ethnic diversity;  ownership  and  investment
 information,  including  the corporate structure; evidence of good moral
 character, including the submission of fingerprints by the applicant  to
 the  division  of criminal justice services; information about the prem-
 ises to be licensed; financial statements;  and  any  other  information
 prescribed by in regulation.
   3.  All  license  applications shall be signed by the applicant (if an
 individual), by a managing partner (if a limited liability corporation),
 by an officer (if a corporation), or by all partners (if a partnership).
 Each person signing such application shall verify it  or  affirm  it  as
 true under the penalties of perjury.
   4. All license or permit applications shall be accompanied by a check,
 draft  or  other forms of payment as the office may require or authorize
 in the amount required by this article for such license or permit.
   5. If there be any change, after the filing of the application or  the
 granting  of  a license, in any of the facts required to be set forth in
 such application, a supplemental statement giving notice of such change,
 cost and source of money involved in the change, duly verified, shall be
 filed with the office within ten days after such change. Failure  to  do
 so  shall,  if  willful  and  deliberate, be cause for revocation of the
 license.

 S. 1509--A                         145                        A. 2009--A
 
   6. In giving any notice, or taking any action in reference to a licen-
 see of a licensed premises, the office may  rely  upon  the  information
 furnished   in  such  application  and  in  any  supplemental  statement
 connected therewith, and such information may be presumed to be correct,
 and  shall  be  binding  upon  a  registered  organization,  licensee or
 licensed  premises  as  if  correct.  All  information  required  to  be
 furnished in such application or supplemental statements shall be deemed
 material  in  any  prosecution  for  perjury,  any proceeding to revoke,
 cancel or suspend any license, and  in  the  office's  determination  to
 approve or deny the license.
   7.  The  office  may,  in  its discretion, waive the submission of any
 category of information described in this section for  any  category  of
 license  or permit, provided that it shall not be permitted to waive the
 requirement for submission of any such category  of  information  solely
 for an individual applicant or applicants.
   §  95. Fees. The office shall have the authority to charge licensees a
 biennial license fee. Such fee may be based on the amount of hemp canna-
 bis to be grown, processed or extracted by the licensee, the gross annu-
 al receipts of the licensee for the  previous  license  period,  or  any
 other factors deemed appropriate by the office.
   § 96. Selection criteria. 1. An applicant shall furnish evidence:
   (a) its ability to effectively maintain a delta-9-tetrahydrocannabinol
 concentration  that  does not exceed a percentage of delta-9-tetrahydro-
 cannabinol cannabis set by the executive director on a dry weight  basis
 of  any part of the plant of the genus cannabis, or per volume or weight
 of cannabis product, or the combined percent of delta-9-tetrahydrocanna-
 binol and tetrahydrocannabinolic acid in any part of the  plant  of  the
 genus cannabis regardless of moisture content, for all hemp cannabis and
 hemp  derived  products cultivated, processed or extracted by the appli-
 cant;
   (b) its ability to comply with all applicable  state  laws  and  regu-
 lations,  including, without limitation, the provisions of article four-
 teen of the agriculture and markets law;
   (c) that the applicant is ready, willing and able to properly carry on
 the activities for which a license is sought; and
   (d) that the applicant is in possession of or has  the  right  to  use
 land, buildings and equipment sufficient to properly carry on the activ-
 ity described in the application.
   2.  The  office,  in considering whether to grant the license applica-
 tion, shall consider whether:
   (a) it is in the public interest that such license be granted,  taking
 into  consideration  whether  the number of licenses will be adequate or
 excessive to reasonably serve demand;
   (b) the applicant and its managing officers are of good moral  charac-
 ter  and  do  not  have  an  ownership  or  controlling interest in more
 licenses or permits than allowed by this chapter; and
   (c) the applicant satisfies any other conditions as determined by  the
 office.
   3.  If  the  executive  director  is  not satisfied that the applicant
 should be issued a license, the  executive  director  shall  notify  the
 applicant in writing of the specific reason or reasons for denial.
   4.  The executive director shall have authority and sole discretion to
 determine the number of licenses issued pursuant to this article.
   § 97. Limitations of licensure; duration. 1. No  license  pursuant  to
 this  article  may  be  issued  to  a person under the age of twenty-one
 years.

 S. 1509--A                         146                        A. 2009--A
 
   2. The office shall have the authority  to  limit,  by  canopy,  plant
 count  or  other means, the amount of hemp cannabis allowed to be culti-
 vated, processed, extracted or sold by a licensee.
   3.  All  licenses  under this article shall expire two years after the
 date of issue and be subject to any rules or limitations  prescribed  by
 the executive director in regulation.
   §  98. License renewal. 1. Each license, issued pursuant to this arti-
 cle, may be renewed upon application therefor by the  licensee  and  the
 payment of the fee for such license as prescribed by this article.
   2.  In  the case of applications for renewals, the office may dispense
 with the requirements of such statements as it deems unnecessary in view
 of those contained in the application made for the original license, but
 in any event the submission of  photographs  of  the  licensed  premises
 shall  be  dispensed with, provided the applicant for such renewal shall
 file a statement with the office to the effect that there  has  been  no
 alteration of such premises since the original license was issued.
   3.  The office may make such rules as may be necessary, not inconsist-
 ent with this chapter, regarding applications for renewals  of  licenses
 and permits and the time for making the same.
   4.  The  office  shall provide an application for renewal of a license
 issued under this article not less than ninety days prior to the expira-
 tion of the current license.
   5. The office may only issue a renewal license  upon  receipt  of  the
 prescribed  renewal  application  and renewal fee from a licensee if, in
 addition to the criteria in section ninety-four  of  this  article,  the
 license's license is not under suspension and has not been revoked.
   6. The office shall have the authority to charge applicants for licen-
 sure  under  this article a non-refundable application fee. Such fee may
 be based on the type of licensure sought, cultivation and/or  production
 volume,  or  any  other factors deemed reasonable and appropriate by the
 office to achieve the policy and purpose of this chapter.
   § 99. Form of license. Licenses issued pursuant to this article  shall
 specify:
   1. the name and address of the licensee;
   2. the activities permitted by the license;
   3.  the  land,  buildings  and  facilities  that  may  be used for the
 licensed activities of the licensee;
   4. a unique license number issued by the office to the licensee; and
   5. such other information as the executive director shall deem  neces-
 sary to assure compliance with this chapter.
   §  100. Amendments to license and duty to update information submitted
 for licensing. 1. Upon application  of  a  licensee  to  the  office,  a
 license  may  be  amended  to  allow the licensee to relocate within the
 state, to add or delete licensed activities or facilities, or  to  amend
 the  ownership  or  organizational  structure  of the entity that is the
 licensee. The fee for such amendment shall be two hundred fifty dollars.
   2. In the event that any of the information provided by the  applicant
 changes  either while the application is pending or after the license is
 granted, within ten days of any such change, the applicant  or  licensee
 shall submit to the office a verified statement setting forth the change
 in circumstances of facts set forth in the application. Failure to do so
 shall,  if  willful  and  deliberate,  be  cause  for  revocation of the
 license.
   3. A license shall become void by a change in  ownership,  substantial
 corporate change or location without prior written approval of the exec-
 utive  director.    The  executive  director  may promulgate regulations

 S. 1509--A                         147                        A. 2009--A
 
 allowing for certain types of changes in ownership without the need  for
 prior written approval.
   4.  For purposes of this section, "substantial corporate change" shall
 mean:
   (a) for a corporation, a change of eighty percent or more of the offi-
 cers and/or directors, or a transfer of eighty percent or more of  stock
 of such corporation, or an existing stockholder obtaining eighty percent
 or more of the stock of such corporation; and
   (b)  for  a  limited  liability company, a change of eighty percent or
 more of the managing members of the company, or  a  transfer  of  eighty
 percent  or  more  of ownership interest in said company, or an existing
 member obtaining a cumulative of eighty percent or more of the ownership
 interest in said company.
   § 101. Record keeping and tracking. 1. The executive  director  shall,
 by  regulation,  require each licensee pursuant to this article to adopt
 and maintain security, tracking, record keeping,  record  retention  and
 surveillance  systems,  relating  to all hemp cannabis at every stage of
 acquiring, possession, manufacture, transport,  sale,  or  delivery,  or
 distribution  by  the  licensee, subject to regulations of the executive
 director.
   2. Every licensee shall keep and maintain upon the licensed  premises,
 adequate  books  and  records of all transactions involving the licensee
 and sale of its products, which shall include all  information  required
 by rules promulgated by the office.
   3. Each sale shall be recorded separately on a numbered invoice, which
 shall  have  printed  thereon  the number, the name of the licensee, the
 address of the licensed premises, and the current license number.
   4. Such books, records and invoices shall be kept for a period of five
 years and shall be available for inspection by any authorized  represen-
 tative of the office.
   §  102.  Inspections  and ongoing requirements. All licensees shall be
 subject to reasonable inspection by the office, and a person who holds a
 license must make himself or herself, or an agent thereof, available and
 present for any inspection required by the office. The office shall make
 reasonable accommodations so that ordinary business is  not  interrupted
 and   safety   and  security  procedures  are  not  compromised  by  the
 inspection.
   § 103. Packaging and labeling of hemp cannabis.    1.  The  office  is
 hereby  authorized  to  promulgate  rules  and regulations governing the
 packaging and labeling of hemp cannabis products, sold or possessed  for
 sale in New York state.
   2.  Such  regulations  shall include, but not be limited to, requiring
 labels warning consumers of any potential impact on human health result-
 ing from the consumption of hemp cannabis products that shall be affixed
 to those products when sold, if such labels are deemed warranted by  the
 office.
   3.  Such  rules and regulations shall establish methods and procedures
 for determining, among other things, serving  sizes  for  hemp  cannabis
 products,  active cannabinoid concentration per serving size, and number
 of servings per container. Such regulations shall also require a  nutri-
 tional  fact  panel  that  incorporates data regarding serving sizes and
 potency thereof.
   4. The packaging, sale, or possession by  any  licensee  of  any  hemp
 product  intended  for human or animal consumption or use not labeled or
 offered in conformity with rules and regulations promulgated in  accord-

 S. 1509--A                         148                        A. 2009--A
 
 ance  with  this  section shall be grounds for the imposition of a fine,
 and/or the suspension, revocation or cancellation of a license.
   §  104. Provisions governing the growing and extracting of hemp canna-
 bis.  1. No licensed cannabinoid grower  or  extractor  shall  sell,  or
 agree to sell or deliver in the state any hemp cannabis products, as the
 case  may  be,  except  in  sealed  containers  containing quantities in
 accordance with size standards pursuant to rules adopted by the  office.
 Such  containers  shall  have  affixed  thereto  such  labels  as may be
 required by the rules of the office.
   2. Licensed cannabinoid growers shall only  use  pesticides  that  are
 registered  by  the New York state department of environmental conserva-
 tion  or  that  specifically  meet  the  United   States   Environmental
 Protection  Agency  registration  exemption  criteria  for  minimum risk
 pesticides, and only  in  compliance  with  regulations,  standards  and
 guidelines issued by the department of environmental conservation.
   3.  All  hemp cannabis products shall be extracted and manufactured in
 accordance with good manufacturing processes, pursuant to  Part  111  of
 Title  21  of  the Code of Federal Regulations as may be modified by the
 executive director in regulation.
   4. The use or integration of alcohol  or  nicotine  in  hemp  cannabis
 products is strictly prohibited.
   §  105.  Laboratory  testing.  1.  Every  cannabinoid  extractor shall
 contract with an independent laboratory to test  the  cannabis  products
 produced by the licensed extractor. The executive director, in consulta-
 tion  with  the commissioner of health, shall approve the laboratory and
 require that the laboratory report testing results in  a  manner  deter-
 mined by the executive director. The executive director is authorized to
 issue  regulations requiring the laboratory to perform certain tests and
 services.
   2. Cannabinoid extractors shall make laboratory test reports available
 to persons holding a cannabinoid permit pursuant to article six of  this
 chapter for all cannabis products manufactured by the licensee.
   3.  On-site  laboratory  testing by licensees is permissible; however,
 such testing shall not be certified by the office and  does  not  exempt
 the  licensee  from  the  requirements of quality assurance testing at a
 testing laboratory pursuant to this section.
   § 106. Advertising. The office shall promulgate rules and  regulations
 governing  the  advertising  of  hemp  cannabis  and  any  other related
 products or services as determined by the executive director.
   § 107. Research. 1. The office shall promote research and  development
 through  public-private  partnerships  to  bring  new  hemp cannabis and
 industrial hemp derived products to market within the state.
   2. The executive director may develop and carry out research  programs
 relating to industrial hemp and hemp cannabis.
   §  108.  Regulations. The executive director shall make regulations to
 implement this article.
 
                                 ARTICLE 6
                            GENERAL PROVISIONS
 
 Section 125. General prohibitions and restrictions.
         126. License to be confined to premises licensed;  premises  for
                which no license shall be granted; transporting cannabis.
         127. Protections  for  the  use  of cannabis; unlawful discrimi-
                nations prohibited.
         128. Registrations and licenses.

 S. 1509--A                         149                        A. 2009--A
 
         129. Laboratory testing permit.
         130. Special use permits.
         131. Professional and medical record keeping.
         132. County opt-out; municipal control and preemption.
         133. Executive   director  to  be  necessary  party  to  certain
                proceedings.
         134. Penalties for violation of this chapter.
         135. Revocation  of  registrations,  licenses  and  permits  for
                cause; procedure for revocation or cancellation.
         136. Lawful actions pursuant to this chapter.
         137. Review by courts.
         138. Illicit cannabis.
         139. Injunction for unlawful manufacture, sale or consumption of
                cannabis.
         140. Persons  forbidden  to  traffic  cannabis products; certain
                officials not to be interested in manufacture or sale  of
                cannabis products.
         141. Access to criminal history information through the division
                of criminal justice services.
   §  125.  General  prohibitions  and restrictions.   1. No person shall
 cultivate, process, or distribute for  sale  or  sell  at  wholesale  or
 retail any cannabis, cannabis product, medical cannabis or hemp cannabis
 product within the state without obtaining the appropriate registration,
 license, or permit therefor required by this chapter.
   2.  No  registered organization, licensee, or permittee shall sell, or
 agree to sell or deliver in this state any cannabis or hemp cannabis for
 the purposes of resale  to  any  person  who  is  not  duly  registered,
 licensed  or permitted pursuant to this chapter to sell such product, at
 wholesale or retail, as the case may be, at the time of  such  agreement
 and sale.
   3. No registered organization, licensee, or permittee shall employ, or
 permit  to  be  employed, or shall allow to work, on any premises regis-
 tered or licensed for retail sale hereunder, any person under the age of
 eighteen years in any capacity where the duties of such  person  require
 or  permit  such  person  to  sell,  dispense or handle cannabis or hemp
 cannabis.
   4. No registered organization,  licensee,  or  permittee  shall  sell,
 deliver  or give away, or cause, permit or procure to be sold, delivered
 or given away any cannabis, cannabis product, medical cannabis  or  hemp
 cannabis  on  credit; except that a registered organization, licensee or
 permittee may accept third party credit cards for the sale of any canna-
 bis, cannabis product, medical cannabis or hemp cannabis for which it is
 registered, licensed or permitted to dispense or  sell  to  patients  or
 cannabis  consumers.  This includes, but is not limited to, any consign-
 ment sale of any kind.
   5. No registered organization, licensee, or permittee shall  cease  to
 be  operated  as  a  bona fide or legitimate premises within the contem-
 plation of the registration, license, or permit issued  for  such  prem-
 ises, as determined within the judgment of the office.
   6.  No  registered  organization, licensee, or permittee shall refuse,
 nor any person holding a registration, license, or  permit  refuse,  nor
 any  officer  or  director  of any corporation or organization holding a
 registration, license, or permit refuse, to appear and/or testify  under
 oath  at  an  inquiry or hearing held by the office, with respect to any
 matter bearing upon the registration, license, or permit, the conduct of
 any people at the licensed premises, or bearing upon  the  character  or

 S. 1509--A                         150                        A. 2009--A
 
 fitness  of  such registrant, licensee, or permittee to continue to hold
 any registration, license, or permit. Nor shall any of the  above  offer
 false testimony under oath at such inquiry or hearing.
   7.  No  registered  organization, licensee, or permittee shall engage,
 participate in, or aid or abet any violation or provision of this  chap-
 ter, or the rules or regulations of the office.
   8.  The  proper conduct of registered, licensed, or permitted premises
 is essential to the public interest. Failure of a  registered  organiza-
 tion,  licensee,  or permittee to exercise adequate supervision over the
 registered, licensed, or permitted location poses a substantial risk not
 only to the objectives of this chapter but imperils the health,  safety,
 and  welfare  of the people of this state. It shall be the obligation of
 each person registered, licensed, or permitted  under  this  chapter  to
 ensure  that  a high degree of supervision is exercised over any and all
 conduct at any registered, licensed, or permitted location  at  any  and
 all times in order to safeguard against abuses of the privilege of being
 registered,  licensed, or permitted, as well as other violations of law,
 statute, rule, or regulation. Persons registered, licensed, or permitted
 shall be held strictly accountable for any and all violations that occur
 upon any registered, licensed, or permitted premises, and  for  any  and
 all  violations  committed  by  or  permitted  by  any manager, agent or
 employee of such registered, licensed, or permitted person.
   9. It shall be unlawful for any  person,  partnership  or  corporation
 operating  a place for profit or pecuniary gain, with a capacity for the
 assemblage of twenty or more persons to permit a person  or  persons  to
 come  to  the place of assembly for the purpose of cultivating, process-
 ing, distributing, or retail distribution or sale of  cannabis  on  said
 premises. This includes, but is not limited, to, cannabis that is either
 provided  by the operator of the place of assembly, his agents, servants
 or employees, or cannabis that is brought  onto  said  premises  by  the
 person or persons assembling at such place, unless an appropriate regis-
 tration,  license,  or permit has first been obtained from the office of
 cannabis management by the operator of said place of assembly.
   10. As it is a privilege under the law to be registered, licensed,  or
 permitted  to cultivate, process, distribute, traffic, or sell cannabis,
 the office may impose any such further restrictions upon any registrant,
 licensee, or permittee in particular instances as it deems necessary  to
 further  state policy and best serve the public interest. A violation or
 failure of any person registered, licensed, or permitted to comply  with
 any  condition,  stipulation, or agreement, upon which any registration,
 license, or permit was issued or renewed by the office shall subject the
 registrant, licensee, or permittee to suspension, cancellation,  revoca-
 tion, and/or civil penalties as determined by the office.
   11.  No  adult-use cannabis or medical cannabis may be imported to, or
 exported out of, New York state by a registered  organization,  licensee
 or  person  holding  a  license  and/or permit pursuant to this chapter,
 until such time as it may become legal  to  do  so  under  federal  law.
 Should it become legal to do so under federal law, the office is granted
 the power to promulgate such rules and regulations as it deems necessary
 to protect the public and the policy of the state.
   12.  No  registered organization, licensee or any of its agents, serv-
 ants or employees shall peddle any cannabis product, medical cannabis or
 hemp cannabis from house to house by means  of  a  truck  or  otherwise,
 where  the  sale  is  consummated  and delivery made concurrently at the
 residence or place of business of a cannabis consumer. This  subdivision
 shall  not  prohibit the delivery by a registered organization to certi-

 S. 1509--A                         151                        A. 2009--A
 
 fied patients or their designated caregivers, pursuant to article  three
 of this chapter.
   13.  No  licensee  shall  employ  any  canvasser  or solicitor for the
 purpose of receiving an order from a certified patient, designated care-
 giver or cannabis consumer for any cannabis product, medical cannabis or
 hemp cannabis at the residence or place of  business  of  such  patient,
 caregiver  or  consumer,  nor  shall  any licensee receive or accept any
 order, for the sale of any cannabis product, medical  cannabis  or  hemp
 cannabis  which shall be solicited at the residence or place of business
 of a patient, caregiver or consumer. This subdivision shall not prohibit
 the solicitation by a distributor of an order from any licensee  at  the
 licensed premises of such licensee.
   14.  No  premises  registered,  licensed,  or  permitted by the office
 shall:
   (a) permit or allow any gambling on the premises;
   (b) permit or allow the premises to become disorderly;
   (c) permit or allow the use, by any person, of any fireworks or  other
 pyrotechnics on the premises; or
   (d)  permit  or  allow to appear as an entertainer, on any part of the
 premises registered, licensed, or permitted, any person under the age of
 eighteen years.
   § 126. License to be confined to premises licensed; premises for which
 no license shall be granted; transporting cannabis.  1. A  registration,
 license,  or  permit issued to any person, pursuant to this chapter, for
 any registered, licensed, or permitted premises shall not be  transfera-
 ble  to  any  other person, to any other location or premises, or to any
 other building or part of the building containing the licensed  premises
 except  in  the  discretion of the office. All privileges granted by any
 registration, license, or permit shall be available only to  the  person
 therein  specified,  and  only  for  the  premises licensed and no other
 except if authorized  by  the  office.    Provided,  however,  that  the
 provisions of this section shall not be deemed to prohibit the amendment
 of  a  registration  or  license  as  provided  for  in  this chapter. A
 violation of this section shall subject the  registration,  license,  or
 permit to revocation for cause.
   2.  Where a registration or license for premises has been revoked, the
 office in its discretion may refuse to issue a registration, license, or
 permit under this chapter, for a period of up to five years  after  such
 revocation, for such premises or for any part of the building containing
 such premises and connected therewith.
   3.  In determining whether to issue such a proscription against grant-
 ing any registration, license, or permit for such five-year  period,  in
 addition  to any other factors deemed relevant to the office, the office
 shall, in the case of a license revoked  due  to  the  illegal  sale  of
 cannabis  to a minor, determine whether the proposed subsequent licensee
 has obtained such premises through an arm's length transaction, and,  if
 such  transaction  is  not  found to be an arm's length transaction, the
 office shall deny the issuance of such license.
   4. For purposes of this section, "arm's length transaction" shall mean
 a sale of a fee of all undivided  interests  in  real  property,  lease,
 management  agreement,  or  other agreement giving the applicant control
 over the cannabis at the premises, or any  part  thereof,  in  the  open
 market,  between  an informed and willing buyer and seller where neither
 is under any compulsion to participate in the transaction, unaffected by
 any unusual conditions indicating a reasonable possibility that the sale
 was made for the purpose of permitting the original  licensee  to  avoid

 S. 1509--A                         152                        A. 2009--A
 
 the  effect of the revocation. The following sales shall be presumed not
 to  be  arm's  length  transactions  unless  adequate  documentation  is
 provided  demonstrating  that  the sale, lease, management agreement, or
 other  agreement  giving  the applicant control over the cannabis at the
 premises, was not conducted, in whole or in part,  for  the  purpose  of
 permitting the original licensee to avoid the effect of the revocation:
   (a) a sale between relatives;
   (b) a sale between related companies or partners in a business; or
   (c) a sale, lease, management agreement, or other agreement giving the
 applicant  control  over the cannabis at the premises, affected by other
 facts or circumstances that would indicate that the sale, lease, manage-
 ment agreement, or other agreement giving the applicant control over the
 cannabis at the premises, is entered into for  the  primary  purpose  of
 permitting the original licensee to avoid the effect of the revocation.
   5.  No  registered organization, licensee or permittee shall transport
 cannabis products or medical cannabis except in vehicles owned and oper-
 ated by such registered organization, licensee or  permittee,  or  hired
 and operated by such registered organization, licensee or permittee from
 a  trucking  or transportation company permitted and registered with the
 office.
   6. No common carrier or person operating a transportation facility  in
 this  state,  other than the United States government, shall receive for
 transportation or delivery within the state  any  cannabis  products  or
 medical cannabis unless the shipment is accompanied by copy of a bill of
 lading,  or  other document, showing the name and address of the consig-
 nor, the name and address of the consignee, the date  of  the  shipment,
 and  the  quantity  and  kind  of  cannabis products or medical cannabis
 contained therein.
   § 127. Protections for the use of cannabis;  unlawful  discriminations
 prohibited.   1. No person, registered organization, licensee or permit-
 tee shall be subject to arrest, prosecution, or penalty in  any  manner,
 or  denied  any  right  or privilege, including but not limited to civil
 liability or disciplinary  action  by  a  business  or  occupational  or
 professional  licensing  board  or  office, solely for conduct permitted
 under this chapter. For the avoidance of doubt, the  appellate  division
 of  the  supreme court of the state of New York, and any disciplinary or
 character and fitness committees established by  them  are  occupational
 and  professional  licensing  boards within the meaning of this section.
 State or local law enforcement agencies  shall  not  cooperate  with  or
 provide  assistance to the government of the United States or any agency
 thereof in enforcing the federal controlled substances act, 21 U.S.C. et
 seq., solely for actions consistent with this chapter, except as  pursu-
 ant to a valid court order.
   2.  No school or landlord may refuse to enroll or lease to and may not
 otherwise penalize a person solely for conduct allowed under this  chap-
 ter, except as exempted:
   (a)  if  failing to do so would cause the school or landlord to lose a
 monetary or licensing related benefit under federal law or regulations;
   (b) if the institution has  adopted  a  code  of  conduct  prohibiting
 cannabis use on the basis of religious belief; or
   (c)  if  a property is registered with the New York smoke-free housing
 registry, it is not required to permit the smoking of cannabis  products
 on its premises.
   3.  For  the  purposes of medical care, including organ transplants, a
 certified patient's authorized use of medical cannabis must  be  consid-
 ered  the equivalent of the use of any other medication under the direc-

 S. 1509--A                         153                        A. 2009--A
 
 tion of a practitioner and does not constitute the  use  of  an  illicit
 substance  or  otherwise disqualify a registered qualifying patient from
 medical care.
   4.  Unless an employer establishes that the lawful use of cannabis has
 impaired the employee's ability to perform the employee's job  responsi-
 bilities,  it  shall  be  unlawful to take any adverse employment action
 against an employee based on conduct allowed under this chapter.
   5. For the purposes of this  section,  an  employer  may  consider  an
 employee's  ability to perform the employee's job responsibilities to be
 impaired when the employee manifests specific articulable symptoms while
 working that decrease or lessen the employee's performance of the duties
 or tasks of the employee's job position.
   6. Nothing in this section shall restrict  an  employer's  ability  to
 prohibit  or take adverse employment action for the possession or use of
 intoxicating substances during work hours, or  require  an  employer  to
 commit  any  act  that  would  cause  the employer to be in violation of
 federal law, or that would result in the loss of a federal  contract  or
 federal funding.
   7. As used in this section, "adverse employment action" means refusing
 to  hire  or employ, barring or discharging from employment, requiring a
 person to retire from employment, or discriminating against  in  compen-
 sation or in terms, conditions, or privileges of employment.
   8.  A  person  currently under parole, probation or other state super-
 vision, or released on bail awaiting trial may not be punished or other-
 wise penalized for conduct allowed under this chapter.
   § 128. Registrations and licenses.   1.  No  registration  or  license
 shall  be  transferable  or  assignable  except that notwithstanding any
 other provision of law, the registration or license of a sole proprietor
 converting to corporate form, where such  proprietor  becomes  the  sole
 stockholder  and  only officer and director of such new corporation, may
 be transferred to the subject corporation if all  requirements  of  this
 chapter  remain the same with respect to such registration or license as
 transferred and, further, the registered organization or licensee  shall
 transmit  to  the  office,  within  ten  days of the transfer of license
 allowable under this subdivision, on a form prescribed  by  the  office,
 notification of the transfer of such license.
   2. No registration or license shall be pledged or deposited as collat-
 eral  security  for  any  loan or upon any other condition; and any such
 pledge or deposit, and any contract providing therefor, shall be void.
   3. Licenses issued under this chapter shall contain,  in  addition  to
 any further information or material to be prescribed by the rules of the
 office, the following information:
   (a) name of the person to whom the license is issued;
   (b)  kind  of  license and what kind of traffic in cannabis is thereby
 permitted;
   (c) description by street and number, or otherwise, of licensed  prem-
 ises; and
   (d)  a  statement in substance that such license shall not be deemed a
 property or vested right, and that it may be revoked at any time  pursu-
 ant to law.
   §  129.  Laboratory  testing permit.   1. The executive director shall
 approve and permit one or more independent cannabis testing laboratories
 to test medical cannabis, adult-use cannabis and/or hemp cannabis.
   2. To be permitted as an independent cannabis laboratory, a laboratory
 must apply to the office, on a form and in a manner  prescribed  by  the

 S. 1509--A                         154                        A. 2009--A
 
 office,  and  must  demonstrate the following to the satisfaction of the
 executive director:
   (a) the owners and directors of the laboratory are of good moral char-
 acter;
   (b)  the laboratory and its staff has the skills, resources and exper-
 tise needed to accurately and consistently perform all  of  the  testing
 required for adult-use cannabis, medical cannabis and/or hemp cannabis;
   (c)  the  laboratory has in place and will maintain adequate policies,
 procedures, and facility security to ensure proper:  collection,  label-
 ing, accessioning, preparation, analysis, result reporting, disposal and
 storage of adult-use cannabis, medical cannabis and/or hemp cannabis;
   (d) the laboratory is physically located in New York state;
   (e)  the  laboratory  has  been  approved  by the department of health
 pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu-
 lations, pertaining to laboratories performing  environmental  analysis;
 and
   (f)  the  laboratory meets any and all requirements prescribed by this
 chapter and by the executive director in regulation.
   3. The owner of a laboratory testing permit under this  section  shall
 not  hold  a registration or license in any category of this chapter and
 shall not have any direct or indirect ownership interest in such  regis-
 tered  organization  or  licensee.  No  board  member, officer, manager,
 owner, partner, principal stakeholder or member of a  registered  organ-
 ization or licensee under this chapter, or such person's immediate fami-
 ly  member,  shall  have  an interest or voting rights in any laboratory
 testing permittee.
   4. The executive director shall require that the permitted  laboratory
 report  testing results to the office in a manner, form and timeframe as
 determined by the executive director.
   5. The executive director is  authorized  to  promulgate  regulations,
 requiring permitted laboratories to perform certain tests and services.
   §  130. Special Use Permits.  The office is hereby authorized to issue
 the following kinds of permits for  carrying  on  activities  consistent
 with  the  policy  and purpose of this chapter with respect to cannabis.
 The executive director has the authority to set  fees  for  all  permits
 issued  pursuant  to this section, to establish the periods during which
 permits are authorized, and to make  rules  and  regulations,  including
 emergency regulations, to implement this section.
   1.  Industrial  cannabis  permit - to purchase cannabis for use in the
 manufacture and sale of any of the following, when such cannabis is  not
 otherwise suitable for consumption purposes, namely:  (a) apparel, ener-
 gy,  paper,  and  tools; (b) scientific, chemical, mechanical and indus-
 trial products; or (c) any other industrial use  as  determined  by  the
 executive director in regulation.
   2.  Nursery  permit  -  to produce clones, immature plants, seeds, and
 other agricultural products used specifically for the  planting,  propa-
 gation,  and  cultivation  of  cannabis,  and  to  sell such to licensed
 adult-use cultivators, registered organizations, and certified  patients
 or their designated caregivers.
   3. Solicitor's permit - to offer for sale or to solicit orders for the
 sale of any cannabis products, medical cannabis and/or hemp cannabis, as
 a  representative  of  a  registered organization or licensee under this
 chapter.
   4. Broker's permit - to act as a broker in the purchase  and  sale  of
 cannabis  products,  medical  cannabis and/or hemp cannabis for a fee or
 commission, for or on behalf of a person authorized to cultivate,  proc-

 S. 1509--A                         155                        A. 2009--A

 ess,  distribute or dispense cannabis products, medical cannabis or hemp
 cannabis within the state.
   5.  Trucking  permit  - to allow for the trucking or transportation of
 cannabis products, medical cannabis or hemp cannabis by a  person  other
 than a registered organization or licensee under this chapter.
   6.  Warehouse  permit - to allow for the storage of cannabis, cannabis
 products, medical cannabis or hemp cannabis at a location not  otherwise
 registered or licensed by the office.
   7.  Delivery permit - to authorize licensed adult-use cannabis dispen-
 saries to deliver adult-use cannabis and cannabis products  directly  to
 cannabis consumers.
   8. Cannabinoid permit - to sell cannabinoid products derived from hemp
 cannabis for off-premises consumption.
   9.  Temporary retail cannabis permit - to authorize the retail sale of
 adult-use cannabis to cannabis consumers, for a limited purpose or dura-
 tion.
   10. Caterer's permit - to authorize the service of  cannabis  products
 at  a function, occasion or event in a hotel, restaurant, club, ballroom
 or other premises, which shall authorize within the hours fixed  by  the
 office,  during  which  cannabis  may  lawfully be sold or served on the
 premises in which such function, occasion or event is held.
   11. Packaging permit - to authorize a licensed cannabis distributor to
 sort, package, label and bundle  cannabis  products  from  one  or  more
 registered  organizations or licensed processors, on the premises of the
 licensed cannabis distributor or at a warehouse for which a  permit  has
 been issued under this section.
   12.  Miscellaneous  permits  -  to purchase, receive or sell cannabis,
 cannabis  products  or  medical  cannabis,  or  receipts,  certificates,
 contracts  or other documents pertaining to cannabis, cannabis products,
 or medical cannabis, in cases not expressly provided for by  this  chap-
 ter,  when  in  the  judgment  of the office it would be appropriate and
 consistent with the policy and purpose of this chapter.
   § 131. Professional and medical  record  keeping.    Any  professional
 providing services in connection with a licensed or potentially licensed
 business under this chapter, or in connection with other conduct permit-
 ted  under  this chapter, and any medical professional providing medical
 care to a patient, other than a certified patient, may agree with  their
 client  or patient to maintain no record, or any reduced level of record
 keeping that professional and client or patient may agree.  In  case  of
 such agreement, the professional's only obligation shall be to keep such
 records  as  agreed, and to keep a record of the agreement. Such reduced
 record keeping is conduct permitted under this chapter.
   § 132. County opt-out; municipal  control  and  preemption.    1.  The
 provisions of article four of this chapter, authorizing the cultivation,
 processing,  distribution  and  sale  of  adult-use cannabis to cannabis
 consumers, shall not be applicable to a county, or city having  a  popu-
 lation  of  one-hundred thousand or more residents, which adopts a local
 law, ordinance or resolution by a majority vote of its governing body to
 completely prohibit the establishment or operation of one or more  types
 of licenses contained in article four of this chapter, within the juris-
 diction of the county or city.
   2.  Except  as  provided  for  in subdivision one of this section, all
 county, town, city and village municipalities are hereby preempted  from
 adopting  any  rule,  ordinance, regulation or prohibition pertaining to
 the operation or licensure of registered organizations, adult-use canna-
 bis licenses or hemp licenses. However, counties and, municipalities may

 S. 1509--A                         156                        A. 2009--A
 
 pass ordinances or regulations governing the time, place and  manner  of
 licensed adult-use cannabis retail dispensaries, provided such ordinance
 or  regulation  does  not  make  the  operation  of such licensed retail
 dispensaries  unreasonably  impracticable as determined by the executive
 director in his or her sole discretion.
   §  133.  Executive  director  to  be  necessary   party   to   certain
 proceedings.    The  executive  director  shall  be  made a party to all
 actions and proceedings affecting in any manner the ability of a  regis-
 tered  organization or licensee to operate within a municipality, or the
 result of any vote thereupon; to all actions and proceedings relative to
 issuance or revocation of registrations, licenses  or  permits;  to  all
 injunction  proceedings,  and  to all other civil actions or proceedings
 which in any manner affect the enjoyment of the privileges or the opera-
 tion of the restrictions provided for in this chapter.
   § 134. Penalties for violation of this chapter.   1.  Any  person  who
 cultivates for sale or sells cannabis, cannabis products, medical canna-
 bis or hemp cannabis without having an appropriate registration, license
 or  permit  therefor, or whose registration, license, or permit has been
 revoked, surrendered or cancelled, shall be guilty of a misdemeanor, and
 upon first conviction thereof shall be punished by a fine not more  than
 five  thousand  dollars per instance or by imprisonment in a county jail
 or penitentiary for a term of not less than thirty days  nor  more  than
 one year or both and upon second conviction thereof shall be punished by
 a fine not less than ten thousand dollars or by imprisonment in a county
 jail  or  penitentiary  for a term of not less than thirty days nor more
 than one year or both and upon all subsequent convictions thereof  shall
 be  punished by a fine not less twenty-five thousand dollars or peniten-
 tiary for a term of not less than thirty days nor more than one year  or
 both  provided, however, that in default of payment of any fine imposed,
 such person shall be imprisoned in a county jail or penitentiary  for  a
 term of not less than thirty days.
   2.  Any  registered  organization  or  licensee, whose registration or
 license has been suspended pursuant to the provisions of  this  chapter,
 who sells cannabis, cannabis products, medical cannabis or hemp cannabis
 during the suspension period, shall be guilty of a misdemeanor, and upon
 conviction  thereof  shall  be  punished by a fine of not more than five
 thousand dollars per instance or by imprisonment in  a  county  jail  or
 penitentiary  for  a  term  of not more than six months, or by both such
 fine and imprisonment.
   3. Any person who shall make any false statement  in  the  application
 for  a  registration,  license  or  a permit under this chapter shall be
 guilty of a misdemeanor, and upon conviction thereof shall be punishable
 by a fine of not more than five thousand dollars, or by imprisonment  in
 a  county jail or penitentiary for a term of not more than six months or
 both.
   4. Any violation by any person of any provision of  this  chapter  for
 which  no  punishment or penalty is otherwise provided shall be a misde-
 meanor.
   § 135. Revocation of registrations, licenses and  permits  for  cause;
 procedure  for revocation or cancellation.  1. Any registration, license
 or permit issued pursuant to this chapter  may  be  revoked,  cancelled,
 suspended  and/or  subjected  to  the  imposition of a civil penalty for
 cause, and must be revoked for the following causes:
   (a) conviction of the registered organization, licensee, permittee  or
 his  or  her  agent  or employee for selling any illegal cannabis on the
 premises registered, licensed or permitted; or

 S. 1509--A                         157                        A. 2009--A
 
   (b) for  transferring,  assigning  or  hypothecating  a  registration,
 license or permit without prior written approval of the office.
   2.  Notwithstanding  the issuance of a registration, license or permit
 by way of renewal, the office may revoke, cancel or suspend such  regis-
 tration, license or permit and/or may impose a civil penalty against any
 holder  of  such  registration, license or permit, as prescribed by this
 section, for causes or violations occurring during  the  license  period
 immediately  preceding  the  issuance  of  such registration, license or
 permit.
   3. (a) As used in this  section,  the  term  "for  cause"  shall  also
 include  the  existence of a sustained and continuing pattern of miscon-
 duct, failure to adequately prevent diversion or disorder  on  or  about
 the  registered, licensed or permitted premises, or in the area in front
 of or adjacent to the registered or licensed premises, or in any parking
 lot provided by the registered  organization  or  licensee  for  use  by
 registered organization or licensee's patrons, which, in the judgment of
 the office, adversely affects or tends to affect the protection, health,
 welfare,  safety,  or repose of the inhabitants of the area in which the
 registered or licensed premises is located, or results in  the  licensed
 premises becoming a focal point for police attention, or is offensive to
 public decency.
   (b)  (i)  As  used  in  this  section, the term "for cause" shall also
 include deliberately misleading the authority:
   (A) as to the nature and character of the business to be  operated  by
 the registered organization, licensee or permittee; or
   (B) by substantially altering the nature or character of such business
 during  the registration or licensing period without seeking appropriate
 approvals from the office.
   (ii) As used in this subdivision, the term "substantially altering the
 nature or character" of such business shall mean any significant  alter-
 ation  in  the  scope  of  business activities conducted by a registered
 organization, licensee or permittee  that  would  require  obtaining  an
 alternate form of registration, license or permit.
   4.  As used in this chapter, the existence of a sustained and continu-
 ing pattern of misconduct, failure to adequately  prevent  diversion  or
 disorder  on  or about the premises may be presumed upon the sixth inci-
 dent reported to the office by a law enforcement agency,  or  discovered
 by  the  office  during  the course of any investigation, of misconduct,
 diversion or disorder on or about the premises or related to the  opera-
 tion  of  the  premises,  absent clear and convincing evidence of either
 fraudulent intent on the part of any complainant or a factual error with
 respect to the content of any report concerning  such  complaint  relied
 upon by the office.
   5.  Notwithstanding any other provision of this chapter to the contra-
 ry, a suspension imposed under this section  against  the  holder  of  a
 registration  issued  pursuant  to  article three of this chapter, shall
 only suspend the licensed activities related to the  type  of  cannabis,
 medical cannabis or adult-use cannabis involved in the violation result-
 ing in the suspension.
   6.  Any  registration, license or permit issued by the office pursuant
 to this chapter  may  be  revoked,  cancelled  or  suspended  and/or  be
 subjected  to  the  imposition  of  a  monetary  penalty  in  the manner
 prescribed by this section and by the executive director in regulation.
   7. The office may on its  own  initiative,  or  on  complaint  of  any
 person, institute proceedings to revoke, cancel or suspend any adult-use
 cannabis   retail  dispensary  license  or  adult-use  cannabis  on-site

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 consumption license and may impose a civil penalty against the  licensee
 after  a  hearing at which the licensee shall be given an opportunity to
 be heard. Such hearing shall be held in such manner and upon such notice
 as may be prescribed in regulation by the executive director.
   8.  All  other  registrations,  licenses  or permits issued under this
 chapter may be revoked, cancelled, suspended and/or made subject to  the
 imposition  of  a civil penalty by the office after a hearing to be held
 in such manner and upon such notice as may be prescribed  in  regulation
 by the executive director.
   9.  Where a licensee or permittee is convicted of two or more qualify-
 ing offenses within a five-year period,  the  office,  upon  receipt  of
 notification of such second or subsequent conviction, shall, in addition
 to  any  other sanction or civil or criminal penalty imposed pursuant to
 this chapter, impose on such licensee a civil penalty not to exceed  ten
 thousand  dollars.    For  purposes  of  this  subdivision, a qualifying
 offense shall mean the unlawful sale of cannabis to a person  under  the
 age  of  twenty-one. For purposes of this subdivision, a conviction of a
 licensee or an employee or agent of such  licensee  shall  constitute  a
 conviction of such licensee.
   §  136. Lawful actions pursuant to this chapter.  1. Contracts related
 to the operation of registered organizations, licenses and permits under
 this chapter shall be lawful and shall not be  deemed  unenforceable  on
 the  basis  that  the  actions  permitted  pursuant to the registration,
 license or permit are prohibited by federal law.
   2. The following actions are not unlawful as provided under this chap-
 ter, shall not be an offense under any state or local law, and shall not
 result in any civil fine, seizure, or forfeiture of assets  against  any
 person acting in accordance with this chapter:
   (a)  Actions  of a registered organization, licensee, or permittee, or
 the employees or agents of such  registered  organization,  licensee  or
 permittee,  as  permitted  by this chapter and consistent with rules and
 regulations of the office, pursuant to a valid registration, license  or
 permit issued by the office.
   (b)  Actions  of  those  who allow property to be used by a registered
 organization, licensee, or permittee, or the employees or agents of such
 registered organization, licensee or permittee,  as  permitted  by  this
 chapter  and consistent with rules and regulations of the office, pursu-
 ant to a valid registration, license or permit issued by the office.
   (c) Actions of any person or entity, their employees, or their  agents
 providing a service to a registered organization, licensee, permittee or
 a  potential registered organization, licensee, or permittee, as permit-
 ted by this chapter and consistent with rules  and  regulations  of  the
 office, relating to the formation of a business.
   (d)  The  purchase,  possession,  or  consumption of cannabis, medical
 cannabis and hemp, as permitted by  this  chapter  and  consistent  with
 rules and regulations of the office, obtained from a validly registered,
 licensed or permitted retailer.
   §  137. Review by courts.  1. The following actions by the office, and
 only the following actions by the office, shall be subject to review  by
 the supreme court in the manner provided in article seventy-eight of the
 civil practice law and rules:
   (a)  Refusal  by  the  office  to  issue a registration, license, or a
 permit.
   (b) The revocation, cancellation  or  suspension  of  a  registration,
 license, or permit by the office.

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   (c) The failure or refusal by the office to render a decision upon any
 application  or  hearing submitted to or held by the office within sixty
 days after such submission or hearing.
   (d)  The  transfer by the office of a registration, license, or permit
 to any other entity or premises, or the failure or refusal by the office
 to approve such a transfer.
   (e) Refusal to approve alteration of premises.
   (f) Refusal to approve a corporate change in stockholders,  stockhold-
 ings, officers or directors.
   2.  No  stay shall be granted pending the determination of such matter
 except on notice to the office and only for a period of less than thirty
 days. In no instance shall a stay be granted where the office has issued
 a summary suspension of a  registration,  license,  or  permit  for  the
 protection of the public health, safety, and welfare.
   § 138. Illicit cannabis.  1. "Illicit cannabis" means and includes any
 cannabis  product,  medical cannabis or hemp cannabis owned, cultivated,
 distributed, bought, sold, packaged, rectified, blended, treated, forti-
 fied, mixed, processed, warehoused,  possessed  or  transported,  or  on
 which  any tax required to have been paid under any applicable state law
 has not been paid.
   2. Any person who shall knowingly possess or have  under  his  or  her
 control any illicit cannabis is guilty of a misdemeanor.
   3.  Any  person  who shall knowingly barter or exchange with, or sell,
 give or offer to sell or to give another any illicit cannabis is  guilty
 of a misdemeanor.
   4.  Any  person  who shall possess or have under his or her control or
 transport any illicit cannabis with intent to barter or  exchange  with,
 or  to sell or give to another the same or any part thereof is guilty of
 a misdemeanor. Such intent is presumptively established  by  proof  that
 the  person  knowingly  possessed or had under his or her control one or
 more ounces of illicit cannabis. This presumption may be rebutted.
   5. Any person who, being the owner, lessee, or occupant of  any  room,
 shed,  tenement,  booth  or  building, float or vessel, or part thereof,
 knowingly permits the same to be used for the  cultivation,  processing,
 distribution, purchase, sale, warehousing, transportation, or storage of
 any illicit cannabis, is guilty of a misdemeanor.
   §  139.  Injunction for unlawful manufacturing, sale or consumption of
 cannabis.  1. If any person shall engage or participate or be  about  to
 engage  or  participate  in  the  cultivation, production, distribution,
 traffic, or sale of cannabis products, medical cannabis or hemp cannabis
 in this state without obtaining the appropriate  registration,  license,
 or  permit  therefor,  or  shall  traffic  in cannabis products, medical
 cannabis or hemp cannabis contrary to any provision of this chapter,  or
 otherwise  unlawfully,  or  shall  traffic in illegal cannabis products,
 medical cannabis or hemp cannabis, or, operating a place for  profit  or
 pecuniary  gain,  with  a  capacity for the assemblage of twenty or more
 persons, shall permit a person or persons  to  come  to  such  place  of
 assembly  for  the purpose of consuming cannabis products without having
 the appropriate license or permit therefor, the  office  may  present  a
 verified  petition  or  complaint to a justice of the supreme court at a
 special term of the supreme court of the judicial district in which such
 city, village or town is situated, for an order  enjoining  such  person
 engaging  or  participating  in  such  activity or from carrying on such
 business. Such petition or complaint shall state the  facts  upon  which
 such  application  is  based.  Upon  the presentation of the petition or
 complaint, the justice or court may grant an order temporarily restrain-

 S. 1509--A                         160                        A. 2009--A
 
 ing any person from continuing to engage in conduct as specified in  the
 petition or complaint, and shall grant an order requiring such person to
 appear  before  such justice or court at or before a special term of the
 supreme  court  in  such judicial district on the day specified therein,
 not more than ten days after the granting thereof,  to  show  cause  why
 such  person should not be permanently enjoined from engaging or partic-
 ipating in such activity or from carrying on such business, or why  such
 person should not be enjoined from carrying on such business contrary to
 the provisions of this chapter. A copy of such petition or complaint and
 order  shall  be  served upon the person, in the manner directed by such
 order, not less than three days before the return day  thereof.  On  the
 day  specified  in such order, the justice or court before whom the same
 is returnable shall hear the proofs of the parties and  may,  if  deemed
 necessary  or  proper,  take testimony in relation to the allegations of
 the petition or complaint. If the justice or  court  is  satisfied  that
 such person is about to engage or participate in the unlawful traffic in
 cannabis,  medical  cannabis  or  hemp cannabis or has unlawfully culti-
 vated, processed, or sold cannabis products, medical  cannabis  or  hemp
 cannabis  without  having obtained a registration or license or contrary
 to the provisions of this chapter, or has trafficked in  illegal  canna-
 bis,  or,  is  operating or is about to operate such place for profit or
 pecuniary gain, with such capacity, and has permitted  or  is  about  to
 permit  a  person  or  persons to come to such place of assembly for the
 purpose of consuming cannabis products without having  such  appropriate
 license, an order shall be granted enjoining such person from thereafter
 engaging  or  participating in or carrying on such activity or business.
 If, after the entry of such an order in the county clerk's office of the
 county in which the principal place of business of  the  corporation  or
 partnership  is  located, or in which the individual so enjoined resides
 or conducts such business, and the service of a copy thereof  upon  such
 person,  or  such  substituted  service  as  the  court may direct, such
 person, partnership or corporation shall, in violation  of  such  order,
 cultivate, process, distribute or sell cannabis products, medical canna-
 bis  or hemp cannabis, or illegal cannabis products, medical cannabis or
 hemp cannabis, or permit a person or persons to come to  such  place  of
 assembly  for  the purpose of consuming cannabis products, such activity
 shall be deemed a contempt of court and  be  punishable  in  the  manner
 provided  by the judiciary law, and, in addition to any such punishment,
 the justice or court before whom or which the petition or  complaint  is
 heard,  may,  in his or its discretion, order the seizure and forfeiture
 of any cannabis products and any fixtures, equipment and  supplies  used
 in the operation or promotion of such illegal activity and such property
 shall  be subject to forfeiture pursuant to law. Costs upon the applica-
 tion for such injunction may be awarded in  favor  of  and  against  the
 parties  thereto  in  such  sums  as in the discretion of the justice or
 court before whom or which the petition or complaint is heard  may  seem
 proper.
   2. The owner, lessor and lessee of a building, erection or place where
 cannabis  products,  medical  cannabis  or  hemp  cannabis is unlawfully
 cultivated, processed, distributed, sold, consumed or  permitted  to  be
 unlawfully  cultivated,  processed, distributed, sold or consumed may be
 made a respondent or defendant in the proceeding or action.
   § 140. Persons forbidden to traffic cannabis; certain officials not to
 be interested in manufacture  or  sale  of  cannabis  products.  1.  The
 following are forbidden to traffic in cannabis:

 S. 1509--A                         161                        A. 2009--A

   (a)  Except as provided in subdivision one-a of this section, a person
 who has been convicted of a felony, unless subsequent to such conviction
 such person shall have received an executive  pardon  therefor  removing
 this disability, a certificate of good conduct granted by the department
 of  corrections  and  community  supervision, or a certificate of relief
 from disabilities granted by the department of corrections and community
 supervision or a court of this state pursuant to the provisions of arti-
 cle twenty-three of the correction law to remove  the  disability  under
 this section because of such conviction;
   (b) A person under the age of twenty-one years;
   (c)  A  person  who  is not a citizen of the United States or an alien
 lawfully admitted for permanent residence in the United States;
   (d) A partnership or a corporation, unless each member of the partner-
 ship, or each of the principal officers  and  directors  of  the  corpo-
 ration,  is a citizen of the United States or an alien lawfully admitted
 for permanent residence in the United States, not less  than  twenty-one
 years  of  age,  and  has  not  been  convicted  of any felony, or if so
 convicted has received, subsequent  to  such  conviction,  an  executive
 pardon  therefor  removing this disability a certificate of good conduct
 granted by the department of corrections and community supervision, or a
 certificate of relief from disabilities granted  by  the  department  of
 corrections  and community supervision or a court of this state pursuant
 to the provisions of article  twenty-three  of  the  correction  law  to
 remove  the  disability  under  this section because of such conviction;
 provided however that a corporation  which  otherwise  conforms  to  the
 requirements  of this section and chapter may be licensed if each of its
 principal officers and more than one-half of its directors are  citizens
 of the United States or aliens lawfully admitted for permanent residence
 in  the United States; and provided further that a corporation organized
 under the not-for-profit corporation law  or  the  education  law  which
 otherwise  conforms  to the requirements of this section and chapter may
 be licensed if each of its principal officers and more than one-half  of
 its  directors are not less than twenty-one years of age and none of its
 directors are less than eighteen years of age; and provided further that
 a corporation organized under the not-for-profit corporation law or  the
 education  law  and  located  on the premises of a college as defined by
 section two of  the  education  law  which  otherwise  conforms  to  the
 requirements  of this section and chapter may be licensed if each of its
 principal officers and each of its directors are not less than  eighteen
 years of age;
   (e)  A  person  who  shall have had any registration or license issued
 under this chapter revoked for cause, until the expiration of two  years
 from the date of such revocation;
   (f)  A  person not registered or licensed under the provisions of this
 chapter, who has been convicted of a violation of  this  chapter,  until
 the expiration of two years from the date of such conviction; or
   (g)  A  corporation or partnership, if any officer and director or any
 partner, while not licensed under the provisions of  this  chapter,  has
 been convicted of a violation of this chapter, or has had a registration
 or  license issued under this chapter revoked for cause, until the expi-
 ration of two years from the date of such conviction or revocation.
   1-a. Notwithstanding the provision of subdivision one of this section,
 a corporation holding a registration  or  license  to  traffic  cannabis
 products  or  medical cannabis shall not, upon conviction of a felony be
 automatically forbidden to  traffic  in  cannabis  products  or  medical
 cannabis,  but  the application for a registered organization or license

 S. 1509--A                         162                        A. 2009--A
 
 by such a corporation shall be subject to denial, and  the  registration
 or  license  of  such  a  corporation  shall be subject to revocation or
 suspension by the office pursuant, consistent  with  the  provisions  of
 article  twenty-three-A of the correction law. For any felony conviction
 by a court other than a court of this state, the office may request  the
 department  of  corrections and community supervision to investigate and
 review the facts and circumstances concerning  such  a  conviction,  and
 such  department  shall,  if  so  requested,  submit its findings to the
 office as to whether the corporation has conducted itself  in  a  manner
 such  that  discretionary review by the office would not be inconsistent
 with the public interest. The department of  corrections  and  community
 supervision  may  charge the registered organization, licensee or appli-
 cant a fee equivalent to the expenses of  an  appropriate  investigation
 under  this  subdivision. For any conviction rendered by a court of this
 state, the office may request the corporation,  if  the  corporation  is
 eligible  for  a certificate of relief from disabilities, to seek such a
 certificate from the court which rendered the conviction and  to  submit
 such a certificate as part of the office's discretionary review process.
   2.  Except as may otherwise be provided for in regulation, it shall be
 unlawful  for  any  police  commissioner,  police  inspector,   captain,
 sergeant,  roundsman,  patrolman or other police official or subordinate
 of any police department in the state, to be either  directly  or  indi-
 rectly  interested in the cultivation, processing, distribution, or sale
 of cannabis products or to offer for sale, or recommend  to  any  regis-
 tered  organization  or licensee any cannabis products. A person may not
 be denied any registration or license granted under  the  provisions  of
 this chapter solely on the grounds of being the spouse of a public serv-
 ant  described  in this section. The solicitation or recommendation made
 to any registered organization or licensee,  to  purchase  any  cannabis
 products by any police official or subordinate as hereinabove described,
 shall be presumptive evidence of the interest of such official or subor-
 dinate in the cultivation, processing, distribution, or sale of cannabis
 products.
   3. No elective village officer shall be subject to the limitations set
 forth  in  subdivision  two of this section unless such elective village
 officer shall be assigned duties directly relating to the  operation  or
 management of the police department.
   §  141. Access to criminal history information through the division of
 criminal justice services.   In connection with  the  administration  of
 this  chapter,  the executive director is authorized to request, receive
 and review criminal history information through the division of criminal
 justice services with respect to  any  person  seeking  a  registration,
 license,  permit  or  authorization to cultivate, process, distribute or
 sell medical cannabis, adult use cannabis or hemp cannabis. At the exec-
 utive director's request, each person, member, principal and/or  officer
 of  the  applicant shall submit to the office his or her fingerprints in
 such form and in such manner as  specified  by  the  division,  for  the
 purpose  of  conducting a criminal history search and returning a report
 thereon in accordance with the procedures and  requirements  established
 by the division pursuant to the provisions of article thirty-five of the
 executive  law,  which shall include the payment of the prescribed proc-
 essing fees for the cost of the division's full search and retain proce-
 dures and a national criminal history record check. The executive direc-
 tor, or his or her designee, shall  submit  such  fingerprints  and  the
 processing fee to the division. The division shall forward to the execu-
 tive director a report with respect to the applicant's previous criminal

 S. 1509--A                         163                        A. 2009--A
 
 history, if any, or a statement that the applicant has no previous crim-
 inal history according to its files. Fingerprints submitted to the divi-
 sion  pursuant  to this subdivision may also be submitted to the federal
 bureau of investigation for a national criminal history record check. If
 additional  copies  of  fingerprints  are  required, the applicant shall
 furnish them upon request.
   § 3. Intentionally omitted.
   § 4. Section 3302 of the public health law, as added by chapter 878 of
 the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
 subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24,
 25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of  1998,
 subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
 and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
 subdivision 20, the opening paragraph of subdivision 22 and  subdivision
 29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
 amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
 vision 41 as added by section 6 of part A of chapter 447 of the laws  of
 2012,  and  subdivisions  42  and 43 as added by section 13 of part D of
 chapter 60 of the laws of 2014, is amended to read as follows:
   § 3302. Definitions of terms of general use in  this  article.  Except
 where   different   meanings   are  expressly  specified  in  subsequent
 provisions of this article, the following terms have the following mean-
 ings:
   1. "Addict" means a person who habitually uses a controlled  substance
 for  a  non-legitimate or unlawful use, and who by reason of such use is
 dependent thereon.
   2.  "Administer"  means  the  direct  application  of   a   controlled
 substance,  whether  by  injection,  inhalation, ingestion, or any other
 means, to the body of a patient or research subject.
   3. "Agent" means an authorized person who acts on behalf of or at  the
 direction of a manufacturer, distributor, or dispenser. No person may be
 authorized  to  so  act  if  under  title VIII of the education law such
 person would not be permitted to engage in such  conduct.  It  does  not
 include  a  common or contract carrier, public warehouseman, or employee
 of the carrier or warehouseman when  acting  in  the  usual  and  lawful
 course of the carrier's or warehouseman's business.
   4. ["Concentrated Cannabis" means
   (a)  the  separated  resin, whether crude or purified, obtained from a
 plant of the genus Cannabis; or
   (b) a material, preparation,  mixture,  compound  or  other  substance
 which  contains  more than two and one-half percent by weight of delta-9
 tetrahydrocannabinol, or  its  isomer,  delta-8  dibenzopyran  numbering
 system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
 terpene numbering system.
   5.]  "Controlled  substance" means a substance or substances listed in
 section thirty-three hundred six of this [chapter] TITLE.
   [6.] 5. "Commissioner" means commissioner of health of  the  state  of
 New York.
   [7.]  6.  "Deliver"  or  "delivery"  means the actual, constructive or
 attempted transfer from one person to another of a controlled substance,
 whether or not there is an agency relationship.
   [8.] 7. "Department" means the department of health of  the  state  of
 New York.
   [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
 mate user or research subject by lawful means, including by means of the

 S. 1509--A                         164                        A. 2009--A
 
 internet, and includes the packaging, labeling, or compounding necessary
 to prepare the substance for such delivery.
   [10.] 9. "Distribute" means to deliver a controlled substance, includ-
 ing by means of the internet, other than by administering or dispensing.
   [11.]  10.  "Distributor"  means a person who distributes a controlled
 substance.
   [12.] 11. "Diversion" means manufacture, possession, delivery  or  use
 of  a  controlled  substance by a person or in a manner not specifically
 authorized by law.
   [13.] 12. "Drug" means
   (a) substances recognized as drugs in the official United States Phar-
 macopoeia, official Homeopathic Pharmacopoeia of the United  States,  or
 official National Formulary, or any supplement to any of them;
   (b)  substances  intended  for use in the diagnosis, cure, mitigation,
 treatment, or prevention of disease in man or animals; and
   (c) substances (other than food) intended to affect the structure or a
 function of the body of man or animal. It does not  include  devices  or
 their components, parts, or accessories.
   [14.]  13. "Federal agency" means the Drug Enforcement Administration,
 United States Department of Justice, or its successor agency.
   [15.] 14. "Federal controlled substances act" means the  Comprehensive
 Drug  Abuse  Prevention  and Control Act of 1970, Public Law 91-513, and
 any act or  acts  amendatory  or  supplemental  thereto  or  regulations
 promulgated thereunder.
   [16.]  15. "Federal registration number" means such number assigned by
 the Federal agency to any person authorized to manufacture,  distribute,
 sell, dispense or administer controlled substances.
   [17.]  16.  "Habitual  user"  means any person who is, or by reason of
 repeated use of any controlled substance for non-legitimate or  unlawful
 use is in danger of becoming, dependent upon such substance.
   [18.]  17.  "Institutional  dispenser"  means  a  hospital, veterinary
 hospital, clinic,  dispensary,  maternity  home,  nursing  home,  mental
 hospital or similar facility approved and certified by the department as
 authorized  to  obtain  controlled  substances  by  distribution  and to
 dispense and administer such substances pursuant to the order of a prac-
 titioner.
   [19.] 18. "License"  means  a  written  authorization  issued  by  the
 department  or  the  New  York  state department of education permitting
 persons to engage in a specified activity  with  respect  to  controlled
 substances.
   [20.]  19.  "Manufacture"  means  the  production, preparation, propa-
 gation,  compounding,  cultivation,  conversion  or  processing   of   a
 controlled  substance,  either  directly  or indirectly or by extraction
 from substances of natural origin, or independently by means of chemical
 synthesis, or by a combination of extraction and chemical synthesis, and
 includes any packaging or repackaging of the substance  or  labeling  or
 relabeling  of its container, except that this term does not include the
 preparation,  compounding,  packaging  or  labeling  of   a   controlled
 substance:
   (a)  by a practitioner as an incident to his administering or dispens-
 ing of a controlled substance in the course of  his  professional  prac-
 tice; or
   (b)  by  a  practitioner,  or by his authorized agent under his super-
 vision, for the purpose of, or as an incident to, research, teaching, or
 chemical analysis and not for sale; or

 S. 1509--A                         165                        A. 2009--A
 
   (c) by a pharmacist as an incident to his dispensing of  a  controlled
 substance in the course of his professional practice.
   [21.  "Marihuana"  means all parts of the plant of the genus Cannabis,
 whether growing or not; the seeds thereof; the resin extracted from  any
 part  of  the  plant; and every compound, manufacture, salt, derivative,
 mixture, or preparation of the plant, its seeds or resin.  It  does  not
 include  the mature stalks of the plant, fiber produced from the stalks,
 oil or cake made from the seeds of the plant, any other compound,  manu-
 facture,  salt, derivative, mixture, or preparation of the mature stalks
 (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
 sterilized seed of the plant which is incapable of germination.
   22.]  20. "Narcotic drug" means any of the following, whether produced
 directly or  indirectly  by  extraction  from  substances  of  vegetable
 origin,  or independently by means of chemical synthesis, or by a combi-
 nation of extraction and chemical synthesis:
   (a) opium and opiate, and any salt, compound, derivative, or  prepara-
 tion of opium or opiate;
   (b)  any  salt,  compound,  isomer, derivative, or preparation thereof
 which is chemically equivalent or identical with any of  the  substances
 referred  to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but not
 including the isoquinoline alkaloids of opium;
   (c) opium poppy and poppy straw.
   [23.] 21. "Opiate" means any substance having an addiction-forming  or
 addiction-sustaining  liability  similar to morphine or being capable of
 conversion into a drug having addiction-forming or  addiction-sustaining
 liability.  It  does  not  include,  unless  specifically  designated as
 controlled under section [3306] THIRTY-THREE HUNDRED SIX of this  [arti-
 cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
 its  salts (dextromethorphan). It does include its racemic and levorota-
 tory forms.
   [24.] 22. "Opium  poppy"  means  the  plant  of  the  species  Papaver
 somniferum L., except its seeds.
   [25.] 23. "Person" means individual, institution, corporation, govern-
 ment  or  governmental  subdivision  or  agency, business trust, estate,
 trust, partnership or association, or any other legal entity.
   [26.] 24. "Pharmacist" means any person licensed by the state  depart-
 ment of education to practice pharmacy.
   [27.]  25.  "Pharmacy"  means  any place registered as such by the New
 York state board of pharmacy and  registered  with  the  Federal  agency
 pursuant to the federal controlled substances act.
   [28.]  26.  "Poppy  straw"  means  all parts, except the seeds, of the
 opium poppy, after mowing.
   [29.] 27. "Practitioner" means:
   A physician, dentist, podiatrist,  veterinarian,  scientific  investi-
 gator,  or  other  person  licensed, or otherwise permitted to dispense,
 administer or conduct research with respect to a controlled substance in
 the course of a licensed  professional  practice  or  research  licensed
 pursuant  to  this article. Such person shall be deemed a "practitioner"
 only as to such substances, or conduct relating to such  substances,  as
 is permitted by his license, permit or otherwise permitted by law.
   [30.]   28.   "Prescribe"  means  a  direction  or  authorization,  by
 prescription, permitting an ultimate user lawfully to obtain  controlled
 substances   from   any  person  authorized  by  law  to  dispense  such
 substances.

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   [31.] 29.  "Prescription"  shall  mean  an  official  New  York  state
 prescription,  an electronic prescription, an oral prescription[,] OR an
 out-of-state prescription[, or any one].
   [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
 er, or offer or agree to do the same.
   [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
 possesses a controlled substance for his own use or the use by a  member
 of  his  household  or  for an animal owned by him or in his custody. It
 shall also mean and include a person designated, by a practitioner on  a
 prescription, to obtain such substance on behalf of the patient for whom
 such substance is intended.
   [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
 cations facilities which comprise the worldwide network of networks that
 employ a set of industry standards and protocols, or any predecessor  or
 successor  protocol  to  such  protocol,  to exchange information of all
 kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
 networks,  whether  private  or  public, used to transmit information by
 electronic means.
   [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
 distribution,  or  dispensing  of  a  controlled substance that uses the
 internet, is initiated by use of the internet or causes the internet  to
 be used.
   [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
 in  the  United  States  that sells, delivers or dispenses, or offers to
 sell, deliver, or dispense, a  controlled  substance  by  means  of  the
 internet.
   [37.]  35.  "Electronic prescription" means a prescription issued with
 an electronic signature and transmitted by electronic means  in  accord-
 ance with regulations of the commissioner and the commissioner of educa-
 tion  and consistent with federal requirements. A prescription generated
 on an electronic system that is printed out or transmitted via facsimile
 is not considered  an  electronic  prescription  and  must  be  manually
 signed.
   [38.] 36. "Electronic" means of or relating to technology having elec-
 trical, digital, magnetic, wireless, optical, electromagnetic or similar
 capabilities. "Electronic" shall not include facsimile.
   [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
 created, generated, transmitted, communicated,  received  or  stored  by
 means  of electronic equipment and includes the preservation, retrieval,
 use and disposition in accordance with regulations of  the  commissioner
 and the commissioner of education and in compliance with federal law and
 regulations.
   [40.] 38. "Electronic signature" means an electronic sound, symbol, or
 process,  attached  to or logically associated with an electronic record
 and executed or adopted by a person with the intent to sign the  record,
 in  accordance with regulations of the commissioner and the commissioner
 of education.
   [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
 means  the prescription monitoring program registry established pursuant
 to section thirty-three hundred forty-three-a of this article.
   [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
 ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
 drug substance to create a drug with respect to an outsourcing  facility
 under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
 further defined in this section.
   [43.] 41. "Outsourcing facility" means a facility that:

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   (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
 section sixty-eight hundred two of the education law;
   (b)  is  currently  registered  as an outsourcing facility pursuant to
 article one hundred thirty-seven of the education law; and
   (c) complies with all applicable requirements  of  federal  and  state
 law, including the Federal Food, Drug and Cosmetic Act.
   Notwithstanding  any  other  provision of law to the contrary, when an
 outsourcing facility distributes or dispenses any  drug  to  any  person
 pursuant to a prescription, such outsourcing facility shall be deemed to
 be  providing  pharmacy services and shall be subject to all laws, rules
 and regulations governing pharmacies and pharmacy services.
   § 5. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
 26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
 section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
 18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
 the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
 laws of 2006, are amended to read as follows:
   (13) [Marihuana.
   (14)] Mescaline.
   [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
   [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
 fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
 not, the seeds thereof, any extract from any part  of  such  plant,  and
 every  compound, manufacture, salts, derivative, mixture, or preparation
 of such plant, its seeds or extracts.
   [(17)] (16) N-ethyl-3-piperidyl benzilate.
   [(18)] (17) N-methyl-3-piperidyl benzilate.
   [(19)] (18) Psilocybin.
   [(20)] (19) Psilocyn.
   [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT
 DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of  the  substances
 contained  in the plant, or in the resinous extractives of cannabis, sp.
 and/or synthetic substances, derivatives, and their isomers with similar
 chemical structure and pharmacological activity such as the following:
   [/\] DELTA 1 cis or  trans  tetrahydrocannabinol,  and  their  optical
 isomers
   [/\]  DELTA  6  cis  or  trans tetrahydrocannabinol, and their optical
 isomers
   [/\] DELTA 3, 4 cis or trans  tetrahydrocannabinol,  and  its  optical
 isomers  (since  nomenclature of these substances is not internationally
 standardized, compounds of these  structures,  regardless  of  numerical
 designation of atomic positions covered).
   [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
 names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
 mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
   [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
 names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
   [(24)] (23) Thiophene analog of phencyclidine.  Some  trade  or  other
 names:     1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog  of
 phencyclidine, TPCP, TCP.
   [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
   [(26)]  (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known   as
 N-ethyl-alpha-methyl-3,4  (methylenedioxy)  phenethylamine, N-ethyl MDA,
 MDE, MDEA.

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   [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
 N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
 N-hydroxy MDA.
   [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
 names: TCPY.
   [(29)] (28) Alpha-ethyltryptamine. Some trade or other names:   etryp-
 tamine;  Monase;  Alpha-ethyl-1H-indole-3-ethanamine;  3- (2-aminobutyl)
 indole; Alpha-ET or AET.
   [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
 names: DOET.
   [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
 names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
 DOB; 2C-B, Nexus.
   [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
 optical isomers, salts and salts of isomers.
   § 6. Title 5-A of article 33 of the public health law is REPEALED.
   § 7. Section 3382 of the public health law, as added by chapter 878 of
 the laws of 1972, is amended to read as follows:
   §  3382. Growing of the plant known as Cannabis by unlicensed persons.
 A person who, without being licensed so to  do  under  this  article  OR
 ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW, grows the plant of the
 genus  Cannabis  or  knowingly  allows  it  to  grow on his land without
 destroying the same, shall be guilty of a class A misdemeanor.
   § 8. Subdivision 1 of section 3397-b of  the  public  health  law,  as
 added by chapter 810 of the laws of 1980, is amended to read as follows:
   1.  ["Marijuana"]  "CANNABIS" means [marijuana] CANNABIS as defined in
 [section thirty-three hundred two of this chapter] SUBDIVISION THREE  OF
 SECTION  THREE OF THE CANNABIS LAW and shall also include tetrahydrocan-
 nabinols or a chemical derivative of tetrahydrocannabinol.
   § 9. Subdivision 8 of section 1399-n of  the  public  health  law,  as
 amended  by  chapter  13  of  the  laws  of  2003, is amended to read as
 follows:
   8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
 any other matter or substance which contains tobacco OR CANNABIS.
   §  10.  Subdivisions  5,  6  and 9 of section 220.00 of the penal law,
 subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
 6 as amended by chapter 1051 of the laws of 1973 and  subdivision  9  as
 amended by chapter 664 of the laws of 1985, are amended and a new subdi-
 vision 21 is added to read as follows:
   5.  "Controlled  substance"  means any substance listed in schedule I,
 II, III, IV or V of section  thirty-three  hundred  six  of  the  public
 health law other than [marihuana] CANNABIS AS DEFINED IN SUBDIVISION SIX
 OF  THIS  SECTION,  but  including  concentrated  cannabis as defined in
 [paragraph (a) of subdivision four of section thirty-three  hundred  two
 of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION.
   6. ["Marihuana"] "CANNABIS" means ["marihuana" or "concentrated canna-
 bis"  as  those terms are defined in section thirty-three hundred two of
 the public health law] ALL PARTS OF THE PLANT  OF  THE  GENUS  CANNABIS,
 WHETHER  GROWING OR NOT; THE SEEDS THEREOF; AND EVERY COMPOUND, MANUFAC-
 TURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF  THE  PLANT,  OR  ITS
 SEEDS.  IT  DOES  NOT  INCLUDE  THE  MATURE  STALKS  OF THE PLANT, FIBER
 PRODUCED FROM THE STALKS, OIL OR CAKE MADE FROM THE SEEDS OF THE  PLANT,
 ANY  OTHER COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARA-
 TION OF THE MATURE STALKS, FIBER, OIL, OR CAKE, OR THE  STERILIZED  SEED
 OF  THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE ALL

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 PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO
 MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC).
   9.  "Hallucinogen"  means  any controlled substance listed in schedule
 I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19),  (20)  AND
 (21).
   21.  "CONCENTRATED  CANNABIS"  MEANS: (A) THE SEPARATED RESIN, WHETHER
 CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A
 MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE  WHICH
 CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI-
 NOL,  OR  ITS  ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1
 TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1  (6)  MONOTERPENE  NUMBERING
 SYSTEM.
   § 11. Subdivision 4 of section 220.06 of the penal law is REPEALED.
   § 12. Subdivision 10 of section 220.09 of the penal law is REPEALED.
   § 13. Subdivision 3 of section 220.34 of the penal law is REPEALED.
   3.  concentrated  cannabis as defined in [paragraph (a) of subdivision
 four of section thirty-three hundred  two  of  the  public  health  law]
 SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or
   §  14.  Section  220.50 of the penal law, as amended by chapter 627 of
 the laws of 1990, is amended to read as follows:
 § 220.50 Criminally using drug paraphernalia in the second degree.
   A person is guilty of  criminally  using  drug  paraphernalia  in  the
 second degree when he knowingly possesses or sells:
   1.  Diluents,  dilutants or adulterants, including but not limited to,
 any of the following: quinine hydrochloride, mannitol, mannite,  lactose
 or  dextrose,  adapted  for the dilution of narcotic drugs or stimulants
 under circumstances evincing an intent to use,  or  under  circumstances
 evincing  knowledge  that  some  person  intends  to  use,  the same for
 purposes of unlawfully mixing, compounding, or otherwise  preparing  any
 narcotic   drug  or  stimulant,  OTHER  THAN  CANNABIS  OR  CONCENTRATED
 CANNABIS; or
   2. Gelatine capsules, glassine envelopes, vials, capsules or any other
 material suitable for the packaging of individual quantities of narcotic
 drugs or stimulants under circumstances evincing an intent  to  use,  or
 under  circumstances evincing knowledge that some person intends to use,
 the same for the  purpose  of  unlawfully  manufacturing,  packaging  or
 dispensing  of  any  narcotic  drug or stimulant, OTHER THAN CANNABIS OR
 CONCENTRATED CANNABIS; or
   3. Scales and balances used or designed for the purpose of weighing or
 measuring controlled substances, under circumstances evincing an  intent
 to  use,  or  under  circumstances  evincing  knowledge that some person
 intends to use, the same for purpose of unlawfully manufacturing,  pack-
 aging or dispensing of any narcotic drug or stimulant, OTHER THAN CANNA-
 BIS OR CONCENTRATED CANNABIS.
   Criminally  using drug paraphernalia in the second degree is a class A
 misdemeanor.
   § 15. Section 221.00 of the penal law, as amended by chapter 90 of the
 laws of 2014, is amended to read as follows:
 § 221.00 [Marihuana] CANNABIS; definitions.
   Unless the context in which they are used clearly otherwise  requires,
 the terms occurring in this article shall have the same meaning ascribed
 to  them  in article two hundred twenty of this chapter. Any act that is
 lawful under [title five-A of article thirty-three of the public health]
 ARTICLES THREE, FOUR OR FIVE, OF THE CANNABIS law is not a violation  of
 this article.

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   §  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.

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   A  person  is guilty of criminal possession of [marihuana] CANNABIS in
 the [third] SECOND degree  when  he  OR  SHE  knowingly  and  unlawfully
 possesses  [one  or more preparations, compounds, mixtures or substances
 containing  marihuana  and  the  preparations,  compounds,  mixtures  or
 substances  are  of] an aggregate weight of more than [eight] TWO ounces
 OF CANNABIS OR MORE THAN TEN GRAMS OF CONCENTRATED CANNABIS.
   Criminal possession of [marihuana]  CANNABIS  in  the  [third]  SECOND
 degree is a class [E felony] A MISDEMEANOR PUNISHABLE BY A FINE NOT MORE
 THAN  ONE  HUNDRED  TWENTY-FIVE DOLLARS PER OUNCE POSSESSED IN EXCESS OF
 TWO OUNCES. HOWEVER, WHERE THE DEFENDANT HAS PREVIOUSLY  BEEN  CONVICTED
 OF  AN  OFFENSE DEFINED IN THIS ARTICLE OR ARTICLE TWO HUNDRED TWENTY OF
 THIS TITLE, COMMITTED WITHIN THE THREE YEARS IMMEDIATELY PRECEDING  SUCH
 VIOLATION,  IT  SHALL  BE PUNISHABLE (A) ONLY BY A FINE OF NOT MORE THAN
 TWO HUNDRED DOLLARS PER OUNCE POSSESSED IN EXCESS OF TWO OUNCES, IF  THE
 DEFENDANT  WAS PREVIOUSLY CONVICTED OF ONE SUCH OFFENSE COMMITTED DURING
 SUCH PERIOD, AND (B) BY A FINE  OF  NOT  MORE  THAN  TWO  HUNDRED  FIFTY
 DOLLARS  PER OUNCE POSSESSED IN EXCESS OF TWO OUNCES OR A TERM OF IMPRI-
 SONMENT NOT IN EXCESS OF FIFTEEN DAYS OR  BOTH,  IF  THE  DEFENDANT  WAS
 PREVIOUSLY  CONVICTED OF TWO SUCH OFFENSES COMMITTED DURING SUCH PERIOD.
 THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO CERTIFIED PATIENTS  OR
 DESIGNATED  CAREGIVERS AS LAWFULLY REGISTERED UNDER ARTICLE THREE OF THE
 CANNABIS LAW.
   § 19. Section 221.25 of the penal law, as amended by  chapter  265  of
 the  laws of 1979, the opening paragraph as amended by chapter 75 of the
 laws of 1995, is amended to read as follows:
 § 221.25 Criminal possession of [marihuana]  CANNABIS  in  the  [second]
            FIRST degree.
   A  person  is guilty of criminal possession of [marihuana] CANNABIS in
 the [second] FIRST degree  when  he  OR  SHE  knowingly  and  unlawfully
 possesses  [one  or more preparations, compounds, mixtures or substances
 containing  marihuana  and  the  preparations,  compounds,  mixtures  or
 substances are of] an aggregate weight of more than [sixteen] SIXTY-FOUR
 ounces OF CANNABIS OR MORE THAN EIGHTY GRAMS OF CONCENTRATED CANNABIS.
   Criminal  possession  of  [marihuana]  CANNABIS  in the [second] FIRST
 degree is a class [D] E felony.
   § 20. Sections 221.10 and 221.30 of the penal law are REPEALED.
   § 21. Section 221.35 of the penal law, as amended by  chapter  265  of
 the  laws of 1979, the opening paragraph as amended by chapter 75 of the
 laws of 1995, is amended to read as follows:
 § 221.35 Criminal sale of [marihuana] CANNABIS in the fifth degree.
   A person is guilty of criminal sale of  [marihuana]  CANNABIS  in  the
 fifth  degree  when  he OR SHE knowingly and unlawfully sells, [without]
 FOR consideration[, one or more  preparations,  compounds,  mixtures  or
 substances   containing   marihuana  and  the  preparations,  compounds,
 mixtures or substances are] CANNABIS  OR  CANNABIS  CONCENTRATE  of  [an
 aggregate weight of two grams or less; or one cigarette containing mari-
 huana] ANY WEIGHT.
   Criminal  sale of [marihuana] CANNABIS in the fifth degree is a [class
 B misdemeanor] VIOLATION PUNISHABLE BY A FINE NOT MORE THAN THE  GREATER
 OF TWO-HUNDRED AND FIFTY DOLLARS OR TWO TIMES THE VALUE OF THE SALE.
   §  22. Section 221.40 of the penal law, as added by chapter 360 of the
 laws of 1977, is amended to read as follows:
 § 221.40 Criminal sale of [marihuana] CANNABIS in the fourth degree.
   A person is guilty of criminal sale of  [marihuana]  CANNABIS  in  the
 fourth  degree  when he OR SHE knowingly and unlawfully sells [marihuana
 except as provided in section 221.35 of this  article]  CANNABIS  OF  AN

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 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

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 CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI-
 ANCE WITH ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW.
   §  27.  Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50
 of the criminal procedure law, paragraphs (i) and (j) as added by  chap-
 ter  905  of  the laws of 1977, paragraph (k) as added by chapter 835 of
 the laws of 1977 and as relettered by chapter 192 of the  laws  of  1980
 and  such  subdivision as renumbered by chapter 142 of the laws of 1991,
 are amended to read as follows:
   (i) prior to the filing of an accusatory instrument in a local  crimi-
 nal  court  against  such person, the prosecutor elects not to prosecute
 such person. In such event, the prosecutor shall serve  a  certification
 of  such  disposition upon the division of criminal justice services and
 upon the appropriate police department or law enforcement agency  which,
 upon  receipt  thereof,  shall  comply with the provisions of paragraphs
 (a), (b), (c) and (d) of subdivision one of this  section  in  the  same
 manner  as  is  required  thereunder with respect to an order of a court
 entered pursuant to said subdivision one[.]; OR
   (j) following the arrest of such person, the arresting police  agency,
 prior  to  the  filing  of  an accusatory instrument in a local criminal
 court but subsequent to the forwarding of a copy of the fingerprints  of
 such  person to the division of criminal justice services, elects not to
 proceed further. In such event, the head of the arresting police  agency
 shall  serve  a  certification  of such disposition upon the division of
 criminal justice services which, upon receipt thereof, shall comply with
 the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
 this section in the same manner as is required thereunder  with  respect
 to an order of a court entered pursuant to said subdivision one[.]; OR
   (k)  (i)  The accusatory instrument alleged a violation of article two
 hundred twenty or section 240.36 of the penal law, prior to  the  taking
 effect  of  article two hundred twenty-one of the penal law AND THE SOLE
 CONROLLED SUBSTANCE INVOLVED IS CANNABIS, or a violation of [article two
 hundred twenty-one] SECTION 221.05, 221.10 OR 221.35 of the  penal  law;
 [(ii)  the  sole  controlled  substance involved is marijuana; (iii) the
 conviction was only for a violation or violations;  and  (iv)  at  least
 three  years have passed since the offense occurred.] NO DEFENDANT SHALL
 BE REQUIRED OR PERMITTED TO WAIVE ELIGIBILITY FOR  SEALING  PURSUANT  TO
 THIS PARAGRAPH AS PART OF A PLEA OF GUILTY, SENTENCE OR ANY AGREEMENT.
   § 27-a. Paragraph (h) and subparagraph (ii) of paragraph (i) of subdi-
 vision  1 of section 440.10 of the criminal procedure law, paragraph (h)
 as amended by chapter 332 of the laws of 2010 and subparagraph  (ii)  of
 paragraph (i) as amended by chapter 368 of the laws of 2015, are amended
 and a new paragraph (j) is added to read as follows:
   (h) The judgment was obtained in violation of a right of the defendant
 under the constitution of this state or of the United States; [or]
   (ii)  official  documentation of the defendant's status as a victim of
 trafficking, compelling prostitution or trafficking in  persons  at  the
 time  of  the  offense  from a federal, state or local government agency
 shall create a presumption that the  defendant's  participation  in  the
 offense was a result of having been a victim of sex trafficking, compel-
 ling  prostitution  or trafficking in persons, but shall not be required
 for granting a motion under this paragraph[.]; OR
   (J) THE JUDGMENT OCCURRED PRIOR TO THE EFFECTIVE DATE  OF  THIS  PARA-
 GRAPH  AND  IS  A  CONVICTION  FOR: (I) AN OFFENSE AS DEFINED BY SECTION
 221.05 OR 221.10 OF THE PENAL LAW AS IN EFFECT PRIOR  TO  THE  EFFECTIVE
 DATE  OF  THIS  PARAGRAPH,  PROVIDED THAT THE ACCUSATORY INSTRUMENT THAT

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 UNDERLIES THE JUDGMENT DOES NOT INCLUDE AN ALLEGATION THAT THE DEFENDANT
 POSSESSED MORE THAN TWENTY-FIVE GRAMS OF CANNABIS.
   §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
 business law is REPEALED.
   § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
 business  law, as amended by chapter 812 of the laws of 1980, is amended
 to read as follows:
   (h) Objects, used or designed for the purpose of ingesting,  inhaling,
 or  otherwise  introducing [marihuana,] cocaine, hashish, or hashish oil
 into the human body.
   § 30. Section 114-a of the vehicle and traffic law, as added by  chap-
 ter 163 of the laws of 1973, is amended to read as follows:
   §  114-a.  Drug.  The term "drug" when used in this chapter, means and
 includes any substance listed in section thirty-three hundred six of the
 public health law AND ANY SUBSTANCE OR COMBINATION  OF  SUBSTANCES  THAT
 IMPAIR, TO ANY EXTENT, PHYSICAL OR MENTAL ABILITIES.
   §  31. The article heading of article 20-B of the tax law, as added by
 chapter 90 of the laws of 2014, is amended to read as follows:
                                ARTICLE 20-B
                EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
   § 32. The paragraph heading and subparagraph (i) of paragraph  (b)  of
 subdivision 1 of section 1193 of the vehicle and traffic law, as amended
 by chapter 169 of the laws of 2013, are amended to read as follows:
   Driving  while intoxicated or while ability impaired by drugs or while
 ability impaired by the combined influence of drugs or  of  alcohol  and
 any  drug  or  drugs;  aggravated driving while intoxicated; misdemeanor
 offenses. (i) A violation of subdivision two, three, OR four [or four-a]
 of section eleven hundred ninety-two of this article shall be  a  misde-
 meanor  and  shall be punishable by a fine of not less than five hundred
 dollars nor more than one thousand dollars,  or  by  imprisonment  in  a
 penitentiary  or county jail for not more than one year, or by both such
 fine and imprisonment. A violation of paragraph (a) of subdivision two-a
 of section eleven hundred ninety-two of this article shall be  a  misde-
 meanor  and  shall be punishable by a fine of not less than one thousand
 dollars nor more than two thousand five hundred dollars or by  imprison-
 ment  in a penitentiary or county jail for not more than one year, or by
 both such fine and imprisonment.
   § 33. Paragraph (c) of subdivision 1 of section 1193  of  the  vehicle
 and  traffic  law,  as  amended  by  chapter 169 of the laws of 2013, is
 amended by adding a new subparagraph (i-a) to read as follows:
   (I-A) A VIOLATION OF SUBDIVISION  FOUR-A  OF  SECTION  ELEVEN  HUNDRED
 NINETY-TWO  OF  THIS  ARTICLE  SHALL  BE  A CLASS E FELONY, AND SHALL BE
 PUNISHABLE BY A FINE OF NOT LESS THAN ONE THOUSAND DOLLARS NOR MORE THAN
 FIVE THOUSAND DOLLARS OR BY A PERIOD OF IMPRISONMENT AS PROVIDED IN  THE
 PENAL LAW, OR BY BOTH SUCH FINE AND IMPRISONMENT.
   §  33-a. Paragraph (b) of subdivision 1 of section 1194 of the vehicle
 and traffic law, as amended by chapter 406  of  the  laws  of  1988,  is
 amended to read as follows:
   (b)  Every person operating a motor vehicle which has been involved in
 an accident or which is operated in violation of any of  the  provisions
 of  this  chapter shall, at the request of a police officer, submit to a
 breath AND/OR SALIVA test to be administered by the police  officer.  If
 such  test  OR TESTS indicate[s] that such operator has consumed alcohol
 OR DRUG OR DRUGS, the police officer may request such operator to submit
 to a chemical test in the manner set forth in subdivision  two  of  this
 section.

 S. 1509--A                         175                        A. 2009--A
 
   §  34.  Subdivision  1  of section 171-a of the tax law, as amended by
 section 3 of part MM of chapter 59 of the laws of 2018,  is  amended  to
 read as follows:
   1.  All  taxes,  interest, penalties and fees collected or received by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A  (except  as  otherwise provided in section two hundred eighty-
 four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except as otherwise provided in section four hundred eighty-two  there-
 of),  twenty-B,  TWENTY-C,  twenty-one, twenty-two, twenty-four, twenty-
 six, twenty-eight  (except  as  otherwise  provided  in  section  eleven
 hundred  two  or  eleven hundred three thereof), twenty-eight-A, twenty-
 nine-B, thirty-one (except as otherwise  provided  in  section  fourteen
 hundred  twenty-one  thereof),  thirty-three  and thirty-three-A of this
 chapter shall be deposited daily in one account  with  such  responsible
 banks,  banking  houses  or  trust companies as may be designated by the
 comptroller, to the credit of the comptroller. Such an  account  may  be
 established  in one or more of such depositories. Such deposits shall be
 kept separate and apart from all other money in the  possession  of  the
 comptroller.  The  comptroller  shall require adequate security from all
 such depositories. Of the total revenue collected or received under such
 articles of this chapter, the comptroller  shall  retain  in  the  comp-
 troller's  hands  such  amount  as  the commissioner may determine to be
 necessary for refunds or reimbursements  under  such  articles  of  this
 chapter  out  of  which  amount the comptroller shall pay any refunds or
 reimbursements to which taxpayers shall be entitled under the provisions
 of such articles of this chapter. The commissioner and  the  comptroller
 shall  maintain  a  system  of  accounts  showing  the amount of revenue
 collected or received from each of the taxes imposed by  such  articles.
 The  comptroller,  after  reserving  the  amount  to pay such refunds or
 reimbursements, shall, on or before the tenth day  of  each  month,  pay
 into  the  state  treasury to the credit of the general fund all revenue
 deposited under this section during the  preceding  calendar  month  and
 remaining  to the comptroller's credit on the last day of such preceding
 month, (i) except that the comptroller shall pay to the state department
 of social services that amount of overpayments of tax imposed by article
 twenty-two of this chapter and the interest  on  such  amount  which  is
 certified  to  the  comptroller  by the commissioner as the amount to be
 credited against past-due support pursuant to subdivision six of section
 one hundred seventy-one-c of this article,  (ii)  and  except  that  the
 comptroller  shall  pay  to the New York state higher education services
 corporation and the state university of New York or the city  university
 of  New  York respectively that amount of overpayments of tax imposed by
 article twenty-two of this chapter and the interest on such amount which
 is certified to the comptroller by the commissioner as the amount to  be
 credited  against  the  amount  of  defaults  in repayment of guaranteed
 student loans and state university loans or city university loans pursu-
 ant to subdivision five of section one hundred seventy-one-d and  subdi-
 vision  six  of section one hundred seventy-one-e of this article, (iii)
 and except further that, notwithstanding any law, the comptroller  shall
 credit   to   the   revenue   arrearage  account,  pursuant  to  section
 ninety-one-a of the state finance law, that amount of overpayment of tax
 imposed by article nine, nine-A, twenty-two, thirty, thirty-A,  thirty-B
 or  thirty-three  of  this  chapter,  and any interest thereon, which is

 S. 1509--A                         176                        A. 2009--A
 
 certified to the comptroller by the commissioner as  the  amount  to  be
 credited  against  a  past-due  legally enforceable debt owed to a state
 agency pursuant to paragraph (a)  of  subdivision  six  of  section  one
 hundred seventy-one-f of this article, provided, however, he shall cred-
 it  to the special offset fiduciary account, pursuant to section ninety-
 one-c of the state finance law, any such amount creditable as a  liabil-
 ity  as  set  forth  in  paragraph (b) of subdivision six of section one
 hundred seventy-one-f of this article, (iv) and except further that  the
 comptroller shall pay to the city of New York that amount of overpayment
 of  tax  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A,
 thirty-B or thirty-three of this chapter and any interest  thereon  that
 is  certified to the comptroller by the commissioner as the amount to be
 credited against city of New York tax warrant judgment debt pursuant  to
 section  one  hundred  seventy-one-l  of  this  article,  (v) and except
 further that the comptroller shall pay to a  non-obligated  spouse  that
 amount of overpayment of tax imposed by article twenty-two of this chap-
 ter  and the interest on such amount which has been credited pursuant to
 section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
 hundred  seventy-one-e,  one hundred seventy-one-f or one hundred seven-
 ty-one-l of this article and which is certified to  the  comptroller  by
 the commissioner as the amount due such non-obligated spouse pursuant to
 paragraph six of subsection (b) of section six hundred fifty-one of this
 chapter;  and  (vi) the comptroller shall deduct a like amount which the
 comptroller shall pay into the treasury to the  credit  of  the  general
 fund  from  amounts  subsequently  payable  to  the department of social
 services, the state university of New York, the city university  of  New
 York,  or  the  higher  education  services  corporation, or the revenue
 arrearage account  or  special  offset  fiduciary  account  pursuant  to
 section  ninety-one-a  or  ninety-one-c of the state finance law, as the
 case may be, whichever had been credited the amount originally  withheld
 from  such  overpayment,  and  (vii)  with respect to amounts originally
 withheld from such overpayment pursuant to section one hundred  seventy-
 one-l  of this article and paid to the city of New York, the comptroller
 shall collect a like amount from the city of New York.
   § 35. Section 490 of the tax law, as added by chapter 90 of  the  laws
 of 2014, is amended to read as follows:
   §  490.  [Definitions]  EXCISE  TAX ON MEDICAL CANNABIS.   1. (a) [All
 definitions of terms applicable to title five-A of article  thirty-three
 of  the  public health law shall apply to this article.] FOR PURPOSES OF
 THIS ARTICLE, THE TERMS "MEDICAL CANNABIS,"  "REGISTERED  ORGANIZATION,"
 "CERTIFIED  PATIENT,"  AND  "DESIGNATED  CAREGIVER"  SHALL HAVE THE SAME
 DEFINITIONS AS IN SECTION THREE OF THE CANNABIS LAW.
   (b) As used in this section, where not otherwise specifically  defined
 and unless a different meaning is clearly required "gross receipt" means
 the  amount  received in or by reason of any sale, conditional or other-
 wise, of medical [marihuana] CANNABIS or in or by reason of the furnish-
 ing of medical [marihuana] CANNABIS from the sale of medical [marihuana]
 CANNABIS provided by a registered organization to a certified patient or
 designated caregiver.  Gross receipt is expressed in money, whether paid
 in cash, credit or property of any kind or nature, and shall  be  deter-
 mined  without  any  deduction  therefrom  on account of the cost of the
 service sold or the cost of materials, labor or services used  or  other
 costs,  interest  or  discount  paid,  or any other expenses whatsoever.
 "Amount received" for the purpose of the definition of gross receipt, as
 the term gross receipt is used throughout this article, means the amount
 charged for the provision of medical [marihuana] CANNABIS.

 S. 1509--A                         177                        A. 2009--A
 
   2. There is hereby imposed an excise tax on the  gross  receipts  from
 the sale of medical [marihuana] CANNABIS by a registered organization to
 a  certified  patient  or designated caregiver, to be paid by the regis-
 tered organization, at the rate of seven percent.  The  tax  imposed  by
 this  article  shall  be  charged  against and be paid by the registered
 organization and shall not be added as a separate charge or line item on
 any sales slip, invoice, receipt or other statement or memorandum of the
 price given to the retail customer.
   3. The commissioner may make,  adopt  and  amend  rules,  regulations,
 procedures  and  forms  necessary  for the proper administration of this
 article.
   4. Every registered organization that makes sales of medical [marihua-
 na] CANNABIS subject to the tax imposed by this  article  shall,  on  or
 before  the  twentieth  date of each month, file with the commissioner a
 return on forms to  be  prescribed  by  the  commissioner,  showing  its
 receipts from the retail sale of medical [marihuana] CANNABIS during the
 preceding calendar month and the amount of tax due thereon. Such returns
 shall  contain such further information as the commissioner may require.
 Every registered organization required  to  file  a  return  under  this
 section shall, at the time of filing such return, pay to the commission-
 er  the total amount of tax due on its retail sales of medical [marihua-
 na] CANNABIS for the period covered by such return. If a return  is  not
 filed  when  due, the tax shall be due on the day on which the return is
 required to be filed.
   5. Whenever the commissioner shall determine that any moneys  received
 under  the  provisions  of this article were paid in error, he may cause
 the same to be refunded, with interest, in accordance  with  such  rules
 and  regulations  as  he may prescribe, except that no interest shall be
 allowed or paid if the amount thereof would be  less  than  one  dollar.
 Such  interest  shall be at the overpayment rate set by the commissioner
 pursuant to subdivision twenty-sixth of section one hundred  seventy-one
 of  this  chapter,  or if no rate is set, at the rate of six percent per
 annum, from the date when the tax, penalty or interest  to  be  refunded
 was  paid  to  a date preceding the date of the refund check by not more
 than thirty days. Provided, however,  that  for  the  purposes  of  this
 subdivision, any tax paid before the last day prescribed for its payment
 shall be deemed to have been paid on such last day. Such moneys received
 under the provisions of this article which the commissioner shall deter-
 mine  were paid in error, may be refunded out of funds in the custody of
 the comptroller to the credit of  such  taxes  provided  an  application
 therefor  is  filed with the commissioner within two years from the time
 the erroneous payment was made.
   6. The provisions of article twenty-seven of this chapter shall  apply
 to  the tax imposed by this article in the same manner and with the same
 force and effect as if the language of such article  had  been  incorpo-
 rated  in  full  into this section and had expressly referred to the tax
 imposed by this article, except to the extent that any provision of such
 article is either inconsistent with a provision of this  article  or  is
 not relevant to this article.
   7.  All  taxes,  interest  and  penalties collected or received by the
 commissioner under this article  shall  be  deposited  and  disposed  of
 pursuant  to the provisions of section one hundred seventy-one-a of this
 chapter, provided that an amount equal to one hundred percent  collected
 under  this article less any amount determined by the commissioner to be
 reserved by the comptroller for refunds or reimbursements shall be  paid
 by  the  comptroller  to  the credit of the medical [marihuana] CANNABIS

 S. 1509--A                         178                        A. 2009--A
 
 trust fund established by section eighty-nine-h  of  the  state  finance
 law.
   8. A registered organization that dispenses medical [marihuana] CANNA-
 BIS  shall  provide  to  the department information on where the medical
 [marihuana] CANNABIS was dispensed and  where  the  medical  [marihuana]
 CANNABIS was manufactured. A registered organization that obtains [mari-
 huana]  CANNABIS  from another registered organization shall obtain from
 such registered organization information on where the medical  [marihua-
 na] CANNABIS was manufactured.
   §  36.  Section 491 of the tax law, as added by chapter 90 of the laws
 of 2014, subdivision 1 as amended by section 1 of part II of chapter  60
 of the laws of 2016, is amended to read as follows:
   § 491. Returns to be secret. 1. Except in accordance with proper judi-
 cial  order or as in this section or otherwise provided by law, it shall
 be unlawful for the commissioner, any officer or employee of the depart-
 ment, or any officer or person who, pursuant to this section, is permit-
 ted to inspect any return or report or to whom a copy, an abstract or  a
 portion of any return or report is furnished, or to whom any information
 contained in any return or report is furnished, or any person engaged or
 retained  by  such  department  on  an independent contract basis or any
 person who in any manner may acquire knowledge  of  the  contents  of  a
 return or report filed pursuant to this article to divulge or make known
 in  any  manner  the  contents  or any other information relating to the
 business of a distributor, owner or other person contained in any return
 or report required under this article. The  officers  charged  with  the
 custody  of such returns or reports shall not be required to produce any
 of them or evidence of anything contained  in  them  in  any  action  or
 proceeding  in  any  court,  except  on  behalf of the state, [the state
 department of health] OFFICE OF CANNABIS MANAGEMENT, or the commissioner
 in an action or proceeding under the provisions of this  chapter  or  on
 behalf  of the state or the commissioner in any other action or proceed-
 ing involving the collection of a tax due under this  chapter  to  which
 the  state  or the commissioner is a party or a claimant or on behalf of
 any party to any action or proceeding under the provisions of this arti-
 cle, when the returns or the reports or  the  facts  shown  thereby  are
 directly  involved  in  such  action  or  proceeding, or in an action or
 proceeding relating to the regulation or taxation of medical [marihuana]
 CANNABIS on behalf of officers  to  whom  information  shall  have  been
 supplied as provided in subdivision two of this section, in any of which
 events  the  court  may  require  the  production  of,  and may admit in
 evidence so much of said returns or reports or of the facts shown there-
 by as are pertinent to the action or proceeding  and  no  more.  Nothing
 herein  shall  be  construed to prohibit the commissioner, in his or her
 discretion, from allowing the inspection or delivery of a certified copy
 of any return or report filed under this article or of  any  information
 contained  in any such return or report by or to a duly authorized offi-
 cer or employee of the [state department of health] OFFICE  OF  CANNABIS
 MANAGEMENT;  or  by  or to the attorney general or other legal represen-
 tatives of the state when an  action  shall  have  been  recommended  or
 commenced  pursuant  to this chapter in which such returns or reports or
 the facts shown thereby are directly involved; or the inspection of  the
 returns  or  reports  required  under this article by the comptroller or
 duly designated officer or employee of the state department of audit and
 control, for purposes of the audit of a refund of  any  tax  paid  by  a
 registered  organization  or  other  person  under  this article; nor to
 prohibit the delivery to a registered organization, or a duly authorized

 S. 1509--A                         179                        A. 2009--A
 
 representative of such registered organization, a certified copy of  any
 return  or report filed by such registered organization pursuant to this
 article, nor to prohibit the publication of statistics so classified  as
 to  prevent  the identification of particular returns or reports and the
 items thereof. This section shall also not be construed to prohibit  the
 disclosure,  for  tax  administration  purposes,  to the division of the
 budget and the office of the state comptroller,  of  information  aggre-
 gated  from the returns filed by all the registered organizations making
 sales of, or manufacturing, medical [marihuana] CANNABIS in a  specified
 county,  whether  the  number of such registered organizations is one or
 more. Provided further that,  notwithstanding  the  provisions  of  this
 subdivision,  the commissioner may, in his or her discretion, permit the
 proper officer of any county entitled to receive an allocation,  follow-
 ing  appropriation  by  the  legislature,  pursuant  to this article and
 section eighty-nine-h of the state finance law, or the authorized repre-
 sentative of such officer, to inspect any return filed under this  arti-
 cle,  or  may furnish to such officer or the officer's authorized repre-
 sentative an abstract of any such return or supply such officer or  such
 representative with information concerning an item contained in any such
 return,  or  disclosed  by any investigation of tax liability under this
 article.
   2. The commissioner, in his or her discretion  and  pursuant  to  such
 rules  and  regulations  as he or she may adopt, may permit [the commis-
 sioner of internal revenue of the United  States,  or]  the  appropriate
 officers of any other state which regulates or taxes medical [marihuana]
 CANNABIS,  or  the duly authorized representatives of such [commissioner
 or of any such] officers, to inspect returns or reports made pursuant to
 this article, or may furnish to such [commissioner or]  other  officers,
 or  duly authorized representatives, a copy of any such return or report
 or an abstract of the information  therein  contained,  or  any  portion
 thereof,  or may supply [such commissioner or] any such officers or such
 representatives with information relating to the business  of  a  regis-
 tered organization making returns or reports hereunder. The commissioner
 may  refuse  to  supply information pursuant to this subdivision [to the
 commissioner of internal revenue of the United States or] to  the  offi-
 cers  of  any  other state if the statutes [of the United States, or] of
 the state represented by such officers, do not grant substantially simi-
 lar privileges to the commissioner, but such refusal shall not be manda-
 tory. Information shall not be supplied to [the commissioner of internal
 revenue of the United States or] the appropriate officers of  any  other
 state which regulates or taxes medical [marihuana] CANNABIS, or the duly
 authorized  representatives  [of  such  commissioner  or] of any of such
 officers, unless such [commissioner,] officer or  other  representatives
 shall  agree  not to divulge or make known in any manner the information
 so supplied, but such officers may transmit such  information  to  their
 employees  or legal representatives when necessary, who in turn shall be
 subject to the same restrictions  as  those  hereby  imposed  upon  such
 [commissioner,] officer or other representatives.
   3. (a) Any officer or employee of the state who willfully violates the
 provisions  of subdivision one or two of this section shall be dismissed
 from office and be incapable of holding any public office in this  state
 for a period of five years thereafter.
   (b)  Cross-reference: For criminal penalties, see article thirty-seven
 of this chapter.
   § 37. The tax law is amended by adding a new article 20-C to  read  as
 follows:

 S. 1509--A                         180                        A. 2009--A
 
                               ARTICLE 20-C
                    TAX ON ADULT-USE CANNABIS PRODUCTS
 SECTION 492. DEFINITIONS.
         493. TAX ON CANNABIS.
         494. REGISTRATION AND RENEWAL.
         495. RETURNS AND PAYMENT OF TAX.
         496. RETURNS TO BE KEPT SECRET.
   §  492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI-
 NITIONS SHALL APPLY:
   (A) "CANNABIS" MEANS ALL PARTS OF  A  PLANT  OF  THE  GENUS  CANNABIS,
 WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
 PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
 MIXTURE,  OR  PREPARATION OF THE PLANT, ITS SEEDS OR RESIN. FOR PURPOSES
 OF THIS ARTICLE, CANNABIS DOES NOT INCLUDE MEDICAL CANNABIS OR  HEMP  AS
 DEFINED IN SECTION THREE OF THE CANNABIS LAW.
   (B)  "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA-
 BIS THAT HAS BEEN HARVESTED, DRIED, AND CURED, AND PRIOR TO ANY PROCESS-
 ING WHEREBY THE  PLANT  MATERIAL  IS  TRANSFORMED  INTO  A  CONCENTRATE,
 INCLUDING,  BUT  NOT  LIMITED TO, CONCENTRATED CANNABIS, OR AN EDIBLE OR
 TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS  AND  OTHER
 INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM.
   (C)  "CANNABIS  TRIM" MEANS ALL PARTS OF A PLANT OF THE GENUS CANNABIS
 OTHER THAN CANNABIS FLOWERS THAT HAVE BEEN HARVESTED, DRIED, AND  CURED,
 AND  PRIOR  TO  ANY PROCESSING WHEREBY THE PLANT MATERIAL IS TRANSFORMED
 INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO,  CONCENTRATED  CANNA-
 BIS,  OR  AN  EDIBLE  OR  TOPICAL  PRODUCT CONTAINING CANNABIS AND OTHER
 INGREDIENTS.
   (D) "ADULT-USE CANNABIS PRODUCT" MEANS A CANNABIS PRODUCT  AS  DEFINED
 IN  SECTION  THREE  OF  THE  CANNABIS LAW. FOR PURPOSES OF THIS ARTICLE,
 UNDER NO CIRCUMSTANCES SHALL ADULT-USE CANNABIS PRODUCT INCLUDE  MEDICAL
 CANNABIS  OR  HEMP  CANNABIS AS DEFINED IN SECTION THREE OF THE CANNABIS
 LAW.
   (E) "PERSON" MEANS EVERY INDIVIDUAL,  PARTNERSHIP,  LIMITED  LIABILITY
 COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
 RECEIVER,  TRUSTEE,  ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING IN A
 FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY  A  COURT  OR
 OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
   (F)  "WHOLESALER"  MEANS  ANY PERSON THAT SELLS OR TRANSFERS ADULT-USE
 CANNABIS PRODUCTS TO A RETAIL DISPENSARY LICENSED  PURSUANT  TO  SECTION
 SEVENTY-TWO  OF  THE  CANNABIS LAW. WHERE THE CULTIVATOR OR PROCESSOR IS
 ALSO THE RETAIL DISPENSARY, THE RETAIL DISPENSARY SHALL  BE  THE  WHOLE-
 SALER FOR PURPOSES OF THIS ARTICLE.
   (G) "CULTIVATION" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO
 OF SECTION SIXTY-EIGHT OF THE CANNABIS LAW.
   (H)  "RETAIL DISPENSARY" MEANS A DISPENSARY LICENSED TO SELL ADULT-USE
 CANNABIS PRODUCTS PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW.
   (I) "TRANSFER" MEANS  TO  GRANT,  CONVEY,  HAND  OVER,  ASSIGN,  SELL,
 EXCHANGE  OR  BARTER,  IN  ANY  MANNER  OR BY ANY MEANS, WITH OR WITHOUT
 CONSIDERATION.
   (J) "SALE" MEANS ANY TRANSFER OF TITLE, POSSESSION OR  BOTH,  EXCHANGE
 OR  BARTER,  RENTAL,  LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL OR
 OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A  CONSIDERATION
 OR ANY AGREEMENT THEREFOR.
   (K)  "PROCESSOR"  HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO
 OF SECTION SIXTY-NINE OF THE CANNABIS LAW.

 S. 1509--A                         181                        A. 2009--A
 
   § 493. TAX ON CANNABIS. (A) THERE IS HEREBY IMPOSED AND SHALL BE  PAID
 A  TAX  ON  THE  CULTIVATION OF CANNABIS FLOWER AND CANNABIS TRIM AT THE
 RATE OF ONE DOLLAR PER DRY-WEIGHT GRAM OF CANNABIS  FLOWER  AND  TWENTY-
 FIVE CENTS PER DRY-WEIGHT GRAM OF CANNABIS TRIM. WHERE THE WHOLESALER IS
 NOT  THE  CULTIVATOR, SUCH TAX SHALL BE COLLECTED FROM THE CULTIVATOR BY
 THE WHOLESALER AT THE TIME SUCH FLOWER OR TRIM  IS  TRANSFERRED  TO  THE
 WHOLESALER.  WHERE  THE  WHOLESALER IS THE CULTIVATOR, SUCH TAX SHALL BE
 PAID BY THE WHOLESALER AND SHALL ACCRUE AT THE TIME OF SALE OR  TRANSFER
 TO A RETAIL DISPENSARY.  WHERE THE CULTIVATOR IS ALSO THE RETAIL DISPEN-
 SARY,  SUCH  TAX  SHALL  ACCRUE  AT  THE  TIME OF THE SALE TO THE RETAIL
 CUSTOMER.
   (B) IN ADDITION TO THE TAX IMPOSED BY SUBDIVISION (A) OF THIS SECTION,
 THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A WHOLESALER TO
 A RETAIL DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, TO BE PAID  BY  SUCH
 WHOLESALER.  WHERE THE WHOLESALER IS NOT THE RETAIL DISPENSARY, SUCH TAX
 SHALL BE AT THE RATE OF TWENTY PERCENT OF THE INVOICE PRICE  CHARGED  BY
 THE  WHOLESALER  TO A RETAIL DISPENSARY, AND SHALL ACCRUE AT THE TIME OF
 SUCH SALE. WHERE THE WHOLESALER IS THE RETAIL DISPENSARY, SUCH TAX SHALL
 BE AT THE RATE OF TWENTY PERCENT OF THE  PRICE  CHARGED  TO  THE  RETAIL
 CUSTOMER AND SHALL ACCRUE AT THE TIME OF SUCH SALE.
   (C)  IN  ADDITION  TO THE TAXES IMPOSED BY SUBDIVISIONS (A) AND (B) OF
 THIS SECTION, THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A
 WHOLESALER TO A RETAIL DISPENSARY OF  ADULT-USE  CANNABIS  PRODUCTS,  IN
 TRUST FOR AND ON ACCOUNT OF THE COUNTY IN WHICH THE RETAIL DISPENSARY IS
 LOCATED.  SUCH  TAX  SHALL BE PAID BY THE WHOLESALER AND SHALL ACCRUE AT
 THE TIME OF SUCH SALE.  WHERE THE WHOLESALER IS NOT THE  RETAIL  DISPEN-
 SARY,  SUCH TAX SHALL BE AT THE RATE OF TWO PERCENT OF THE INVOICE PRICE
 CHARGED BY THE WHOLESALER TO A RETAIL DISPENSARY. WHERE  THE  WHOLESALER
 IS  THE  RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF TWO PERCENT
 OF THE PRICE CHARGED TO THE RETAIL CUSTOMER.
   (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  THE
 TAXES  IMPOSED  BY ARTICLE TWENTY OF THIS CHAPTER SHALL NOT APPLY TO ANY
 PRODUCT SUBJECT TO TAX UNDER THIS ARTICLE.
   § 494. REGISTRATION AND RENEWAL. (A) EVERY WHOLESALER MUST  FILE  WITH
 THE  COMMISSIONER  A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF
 REGISTRATION BEFORE ENGAGING IN BUSINESS. IN ORDER  TO  APPLY  FOR  SUCH
 CERTIFICATE  OF REGISTRATION, SUCH PERSON MUST FIRST BE IN POSSESSION OF
 A VALID LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT.  AN  APPLICATION
 FOR A CERTIFICATE OF REGISTRATION MUST BE SUBMITTED ELECTRONICALLY, ON A
 FORM  PRESCRIBED  BY THE COMMISSIONER, AND MUST BE ACCOMPANIED BY A NON-
 REFUNDABLE APPLICATION FEE OF SIX  HUNDRED  DOLLARS.  A  CERTIFICATE  OF
 REGISTRATION  SHALL  NOT  BE  ASSIGNABLE  OR  TRANSFERABLE  AND SHALL BE
 DESTROYED IMMEDIATELY UPON SUCH PERSON CEASING TO DO BUSINESS AS  SPECI-
 FIED  IN  SUCH  CERTIFICATE,  OR  IN  THE EVENT THAT SUCH BUSINESS NEVER
 COMMENCED.
   (B) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF  REGISTRA-
 TION  TO  ANY APPLICANT AND SHALL REVOKE THE CERTIFICATE OF REGISTRATION
 OF ANY SUCH PERSON WHO DOES NOT POSSESS A VALID LICENSE FROM THE  OFFICE
 OF  CANNABIS  MANAGEMENT. THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIF-
 ICATE OF REGISTRATION TO ANY APPLICANT WHERE SUCH APPLICANT: (1)  HAS  A
 PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVEN-
 TY-ONE-V  OF  THIS  CHAPTER;  (2)  HAS HAD A CERTIFICATE OF REGISTRATION
 UNDER THIS ARTICLE, A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT, OR
 ANY LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED  WITHIN
 ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (3) HAS BEEN
 CONVICTED  OF  A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM

 S. 1509--A                         182                        A. 2009--A
 
 THE DATE ON WHICH SUCH APPLICATION WAS FILED OF THE CERTIFICATE'S  ISSU-
 ANCE;  (4)  WILLFULLY  FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS
 ARTICLE; (5) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO  BE
 GIVEN  A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTI-
 CLE WHICH IS FALSE; OR (6) WILLFULLY  FAILS  TO  COLLECT  OR  TRUTHFULLY
 ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE.
   (C) A CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE PERIOD SPECI-
 FIED  THEREON,  UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION
 OF THE TERM STATED ON A CERTIFICATE OF  REGISTRATION,  SUCH  CERTIFICATE
 SHALL BE NULL AND VOID.
   (D)  EVERY  HOLDER  OF  A  CERTIFICATE OF REGISTRATION MUST NOTIFY THE
 COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE  CERTIF-
 ICATE, OR OF CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR
 THE  CERTIFICATE  OF  REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR
 BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS  AND  MUST  BE
 MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.
   (E)  EVERY  HOLDER OF A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE
 SHALL BE REQUIRED TO REAPPLY PRIOR  TO  SUCH  CERTIFICATE'S  EXPIRATION,
 DURING  A  REAPPLICATION  PERIOD  ESTABLISHED  BY THE COMMISSIONER. SUCH
 REAPPLICATION PERIOD SHALL NOT OCCUR  MORE  FREQUENTLY  THAN  EVERY  TWO
 YEARS.  SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND
 CONDITIONS, INCLUDING GROUNDS FOR REFUSAL, AS  AN  INITIAL  APPLICATION,
 INCLUDING THE PAYMENT OF THE APPLICATION FEE.
   (F)  PENALTIES. A PERSON TO WHOM ADULT-USE CANNABIS PRODUCTS HAVE BEEN
 TRANSFERRED OR WHO SELLS ADULT-USE CANNABIS  PRODUCTS  WITHOUT  A  VALID
 CERTIFICATE  OF REGISTRATION PURSUANT TO SUBDIVISION (A) OF THIS SECTION
 SHALL BE SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS FOR EACH MONTH  OR
 PART  THEREOF  DURING  WHICH  SUCH PERSON CONTINUES TO POSSESS ADULT-USE
 CANNABIS PRODUCTS THAT HAVE BEEN TRANSFERRED TO SUCH PERSON OR WHO SELLS
 SUCH PRODUCTS AFTER THE EXPIRATION OF THE FIRST MONTH AFTER  WHICH  SUCH
 PERSON  OPERATES  WITHOUT  A  VALID  CERTIFICATE OF REGISTRATION, NOT TO
 EXCEED TEN THOUSAND DOLLARS IN THE AGGREGATE.
   § 495. RETURNS AND PAYMENT OF TAX. (A) 1. EVERY WHOLESALER  SHALL,  ON
 OR  BEFORE THE TWENTIETH DATE OF THE MONTH, FILE WITH THE COMMISSIONER A
 RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE  TOTAL
 WEIGHT  OF  CANNABIS FLOWER AND CANNABIS TRIM SUBJECT TO TAX PURSUANT TO
 SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE AND
 THE TOTAL AMOUNT OF TAX DUE THEREON IN THE PRECEDING CALENDAR MONTH, AND
 THE TOTAL AMOUNT OF TAX DUE UNDER  SUBDIVISIONS  (B)  AND  (C)  OF  SUCH
 SECTION  ON ITS SALES TO A RETAIL DISPENSARY DURING THE PRECEDING CALEN-
 DAR MONTH, ALONG WITH SUCH OTHER INFORMATION  AS  THE  COMMISSIONER  MAY
 REQUIRE.  EVERY  PERSON  REQUIRED  TO  FILE  A RETURN UNDER THIS SECTION
 SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO  THE  COMMISSIONER  THE
 TOTAL  AMOUNT  OF  TAX  DUE  FOR THE PERIOD COVERED BY SUCH RETURN. IF A
 RETURN IS NOT FILED WHEN DUE, THE TAX SHALL BE DUE ON THE DAY  ON  WHICH
 THE RETURN IS REQUIRED TO BE FILED.
   2.  THE  WHOLESALER  SHALL  MAINTAIN  SUCH RECORDS IN SUCH FORM AS THE
 COMMISSIONER MAY REQUIRE REGARDING SUCH ITEMS AS: WHERE  THE  WHOLESALER
 IS  NOT  THE  CULTIVATOR, THE WEIGHT OF THE CANNABIS FLOWER AND CANNABIS
 TRIM TRANSFERRED TO IT BY A CULTIVATOR OR, WHERE THE WHOLESALER  IS  THE
 CULTIVATOR,  THE  WEIGHT  OF  SUCH  FLOWER  AND TRIM PRODUCED BY IT; THE
 GEOGRAPHIC LOCATION OF EVERY RETAIL DISPENSARY TO WHICH IT  SOLD  ADULT-
 USE  CANNABIS  PRODUCTS; AND ANY OTHER RECORD OR INFORMATION REQUIRED BY
 THE COMMISSIONER. THIS INFORMATION MUST BE KEPT BY  SUCH  PERSON  FOR  A
 PERIOD OF THREE YEARS AFTER THE RETURN WAS FILED.

 S. 1509--A                         183                        A. 2009--A
 
   (B) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO  THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME
 FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE  HAD  BEEN  INCORPO-
 RATED  IN  FULL  INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE TAX
 IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH
 ARTICLE  IS  EITHER  INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS
 NOT RELEVANT TO THIS ARTICLE.
   (C) 1. ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED BY THE
 COMMISSIONER UNDER THIS ARTICLE  SHALL  BE  DEPOSITED  AND  DISPOSED  OF
 PURSUANT  TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS
 CHAPTER, PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT  COLLECTED
 UNDER  THIS ARTICLE LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO BE
 RESERVED BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE  PAID
 BY  THE  COMPTROLLER  TO  THE CREDIT OF THE CANNABIS REVENUE FUND ESTAB-
 LISHED BY SECTION NINETY-NINE-FF OF THE STATE FINANCE LAW. OF THE  TOTAL
 REVENUE  COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER SHALL
 RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
 REFUNDS. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM  THE
 REGISTRATION  FEES UNDER SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY-
 FOUR OF THIS ARTICLE, BEFORE DEPOSIT  INTO  THE  CANNABIS  REVENUE  FUND
 DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTU-
 ATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPART-
 MENT  FOR  THE COSTS INCURRED TO ADMINISTER, COLLECT, AND DISTRIBUTE THE
 TAXES IMPOSED BY THIS ARTICLE.
   2. NOTWITHSTANDING THE FOREGOING, THE COMMISSIONER  SHALL  CERTIFY  TO
 THE  COMPTROLLER  THE TOTAL AMOUNT OF TAX, PENALTY AND INTEREST RECEIVED
 BY HIM OR HER ON ACCOUNT OF  THE  TAX  IMPOSED  BY  SUBDIVISION  (C)  OF
 SECTION  FOUR  HUNDRED  NINETY-THREE OF THIS ARTICLE IN TRUST FOR AND ON
 ACCOUNT OF EACH COUNTY IN WHICH A RETAIL DISPENSARY IS  LOCATED.  ON  OR
 BEFORE  THE  TWELFTH DAY OF EACH MONTH, THE COMPTROLLER, AFTER RESERVING
 SUCH REFUND FUND, SHALL PAY TO THE APPROPRIATE FISCAL  OFFICER  OF  EACH
 SUCH  COUNTY THE TAXES, PENALTIES AND INTEREST RECEIVED AND CERTIFIED BY
 THE COMMISSIONER FOR THE PRECEDING CALENDAR MONTH.
   § 496. RETURNS TO BE KEPT SECRET. (A) EXCEPT IN ACCORDANCE WITH PROPER
 JUDICIAL ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED  BY  LAW,  IT
 SHALL  BE  UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE
 DEPARTMENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS  SECTION,  IS
 PERMITTED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT
 OR A PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFOR-
 MATION CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON WHO
 IN  ANY  MANNER  MAY  ACQUIRE  KNOWLEDGE  OF THE CONTENTS OF A RETURN OR
 REPORT FILED PURSUANT TO THIS ARTICLE TO DIVULGE OR MAKE  KNOWN  IN  ANY
 MANNER  THE  CONTENT OR ANY OTHER INFORMATION RELATED TO THE BUSINESS OF
 THE WHOLESALER CONTAINED IN ANY RETURN OR  REPORT  REQUIRED  UNDER  THIS
 ARTICLE.  THE  OFFICERS  CHARGED  WITH  THE  CUSTODY  OF SUCH RETURNS OR
 REPORTS SHALL NOT BE REQUIRED TO PRODUCE ANY  OF  THEM  OR  EVIDENCE  OF
 ANYTHING  CONTAINED  IN  THEM  IN ANY ACTION OR PROCEEDING IN ANY COURT,
 EXCEPT ON BEHALF OF THE STATE, THE OFFICE OF CANNABIS MANAGEMENT, OR THE
 COMMISSIONER IN AN ACTION OR PROCEEDING INVOLVING THE COLLECTION OF  TAX
 DUE UNDER THIS CHAPTER TO WHICH THE STATE OR THE COMMISSIONER IS A PARTY
 OR  A  CLAIMANT  OR  ON  BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING
 UNDER THE PROVISIONS OF THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR
 THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEED-
 ING, OR IN AN ACTION OR PROCEEDING RELATED TO THE REGULATION OR TAXATION
 OF ADULT-USE CANNABIS PRODUCTS ON BEHALF OF OFFICERS TO WHOM INFORMATION
 SHALL HAVE BEEN SUPPLIED AS PROVIDED IN THIS SECTION, IN  ANY  OF  WHICH

 S. 1509--A                         184                        A. 2009--A
 
 EVENTS  THE  COURTS  MAY  REQUIRE  THE  PRODUCTION  OF, AND MAY ADMIT IN
 EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE-
 BY AS ARE PERTINENT TO THE ACTION OR PROCEEDING  AND  NO  MORE.  NOTHING
 HEREIN  SHALL  BE  CONSTRUED TO PROHIBIT THE COMMISSIONER, IN HIS OR HER
 DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTIFIED COPY
 OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE OR OF  ANY  INFORMATION
 CONTAINED  IN ANY SUCH RETURN OR REPORT BY OR TO A DULY AUTHORIZED OFFI-
 CER OR EMPLOYEE OF THE OFFICE OF CANNABIS MANAGEMENT OR  BY  OR  TO  THE
 ATTORNEY  GENERAL  OR  OTHER  LEGAL REPRESENTATIVES OF THE STATE WHEN AN
 ACTION SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAPTER
 IN WHICH SUCH RETURNS OR REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY
 INVOLVED; OR THE INSPECTION OF THE RETURNS  OR  REPORTS  REQUIRED  UNDER
 THIS  ARTICLE  BY THE COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE
 OF THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE  AUDIT
 OF A REFUND OF ANY TAX PAID BY THE WHOLESALER UNDER THIS ARTICLE; NOR TO
 PROHIBIT THE DELIVERY TO SUCH PERSON OR A DULY AUTHORIZED REPRESENTATIVE
 OF  SUCH  PERSON, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH
 PERSON PURSUANT TO THIS ARTICLE, NOR  TO  PROHIBIT  THE  PUBLICATION  OF
 STATISTICS  SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR
 RETURNS OR REPORTS AND THE ITEMS THEREOF. THIS SECTION SHALL ALSO NOT BE
 CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX  ADMINISTRATION  PURPOSES,
 TO  THE  DIVISION OF THE BUDGET AND THE OFFICE OF THE STATE COMPTROLLER,
 OF INFORMATION AGGREGATED FROM THE  RETURNS  FILED  BY  ALL  WHOLESALERS
 PURCHASING AND SELLING SUCH PRODUCTS IN THE STATE, WHETHER THE NUMBER OF
 SUCH  PERSONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITHSTANDING THE
 PROVISIONS OF THIS SUBDIVISION, THE  COMMISSIONER  MAY  IN  HIS  OR  HER
 DISCRETION,  PERMIT THE PROPER OFFICER OF ANY COUNTY ENTITLED TO RECEIVE
 ANY DISTRIBUTION OF THE MONIES RECEIVED ON ACCOUNT OF THE TAX IMPOSED BY
 SUBDIVISION (C) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE, OR
 THE AUTHORIZED REPRESENTATIVE OF SUCH OFFICER,  TO  INSPECT  ANY  RETURN
 FILED  UNDER  THIS  ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR THE OFFI-
 CER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY
 SUCH OFFICER OR  REPRESENTATIVE  WITH  INFORMATION  CONCERNING  AN  ITEM
 CONTAINED  IN  ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX
 LIABILITY UNDER THIS ARTICLE.
   (B) THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY PERMIT THE  APPRO-
 PRIATE  OFFICERS  OF ANY OTHER STATE THAT REGULATES OR TAXES CANNABIS OR
 THE DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY  SUCH
 OFFICERS,  TO  INSPECT RETURNS OR REPORTS MADE PURSUANT TO THIS ARTICLE,
 OR MAY FURNISH TO THE COMMISSIONER OR OTHER OFFICER, OR DULY  AUTHORIZED
 REPRESENTATIVES,  A  COPY OF ANY SUCH RETURN OR REPORT OR AN ABSTRACT OF
 THE INFORMATION THEREIN CONTAINED, OR ANY PORTION THEREOF, OR MAY SUPPLY
 SUCH COMMISSIONER OR ANY SUCH  OFFICERS  OR  SUCH  REPRESENTATIVES  WITH
 INFORMATION  RELATING  TO THE BUSINESS OF A WHOLESALER MAKING RETURNS OR
 REPORTS HEREUNDER SOLELY FOR PURPOSES OF TAX ADMINISTRATION. THE COMMIS-
 SIONER MAY REFUSE TO SUPPLY INFORMATION PURSUANT TO THIS SUBDIVISION  TO
 THE OFFICERS OF ANY OTHER STATE IF THE STATUTES OF THE STATE REPRESENTED
 BY  SUCH  OFFICERS  DO NOT GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE
 COMMISSIONER, BUT SUCH REFUSAL SHALL NOT BE MANDATORY. INFORMATION SHALL
 NOT BE SUPPLIED TO THE APPROPRIATE OFFICERS OF ANY STATE THAT  REGULATES
 OR  TAXES  CANNABIS,  OR  THE  DULY  AUTHORIZED  REPRESENTATIVES OF SUCH
 COMMISSIONER OR OF ANY SUCH OFFICERS, UNLESS SUCH COMMISSIONER, OFFICER,
 OR OTHER REPRESENTATIVES SHALL AGREE NOT TO DIVULGE OR MAKE KNOWN IN ANY
 MANNER THE INFORMATION SO SUPPLIED, BUT SUCH OFFICERS MAY TRANSMIT  SUCH
 INFORMATION  TO THEIR EMPLOYEES OR LEGAL REPRESENTATIVES WHEN NECESSARY,

 S. 1509--A                         185                        A. 2009--A
 
 WHO IN TURN SHALL BE SUBJECT TO THE SAME RESTRICTIONS  AS  THOSE  HEREBY
 IMPOSED UPON SUCH COMMISSIONER, OFFICER OR OTHER REPRESENTATIVES.
   (C) 1. ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS  OF SUBDIVISION ONE OR TWO OF THIS SECTION SHALL BE DISMISSED
 FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN  THE  STATE
 FOR A PERIOD OF FIVE YEARS THEREAFTER.
   2. FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
   §  38.  Subdivision  (a)  of section 1115 of the tax law is amended by
 adding a new paragraph 3-b to read as follows:
   (3-B) ADULT-USE CANNABIS PRODUCTS AS DEFINED BY  ARTICLE  TWENTY-C  OF
 THIS CHAPTER.
   § 39. Section 1825 of the tax law, as amended by section 3 of part NNN
 of chapter 59 of the laws of 2018, is amended to read as follows:
   §  1825.  Violation  of secrecy provisions of the tax law.--Any person
 who violates the SECRECY provisions of [subdivision (b) of section twen-
 ty-one, subdivision one of section two hundred two, subdivision eight of
 section two hundred eleven, subdivision (a)  of  section  three  hundred
 fourteen,  subdivision  one or two of section four hundred thirty-seven,
 section four hundred eighty-seven, subdivision one  or  two  of  section
 five hundred fourteen, subsection (e) of section six hundred ninety-sev-
 en,  subsection (a) of section nine hundred ninety-four, subdivision (a)
 of section eleven hundred forty-six, section twelve hundred  eighty-sev-
 en,  section  twelve  hundred ninety-six, section twelve hundred ninety-
 nine-F, subdivision (a) of section fourteen hundred  eighteen,  subdivi-
 sion (a) of section fifteen hundred eighteen, subdivision (a) of section
 fifteen hundred fifty-five of] this chapter, [and] OR subdivision (e) of
 section 11-1797 of the administrative code of the city of New York shall
 be guilty of a misdemeanor.
   § 40. Section 12 of chapter 90 of the laws of 2014 amending the public
 health  law,  the  tax  law, the state finance law, the general business
 law, the penal law and the criminal procedure law  relating  to  medical
 use of marihuana, is amended to read as follows:
   §  12. This act shall take effect immediately [and]; PROVIDED, HOWEVER
 THAT SECTIONS ONE, THREE, FIVE, SIX, SEVEN-A, EIGHT, NINE, TEN AND ELEV-
 EN OF THIS ACT shall expire and be deemed  repealed  seven  years  after
 such  date; provided that the amendments to section 171-a of the tax law
 made by section seven of this act shall take effect on the same date and
 in the same manner as section 54 of part A of chapter 59 of the laws  of
 2014  takes  effect  AND  SHALL  NOT  EXPIRE AND BE DEEMED REPEALED; and
 provided, further, that the  amendments  to  subdivision  5  of  section
 410.91  of the criminal procedure law made by section eleven of this act
 shall not affect the expiration and repeal of  such  section  and  shall
 expire and be deemed repealed therewith.
   §  41.  The  office  of  cannabis management, in consultation with the
 division of the budget, the department  of  taxation  and  finance,  the
 department of health, office of alcoholism and substance abuse services,
 office of mental health, New York state police and the division of crim-
 inal  justice  services,  shall conduct a  study of the effectiveness of
 this act. Such study shall examine all aspects of  this  act,  including
 economic  and fiscal impacts, the impact on the public health and safety
 of New York residents and the progress made in achieving social  justice
 goals and toward eliminating the illegal market for cannabis products in
 New  York. The office shall make recommendations regarding the appropri-
 ate level of taxation of adult-use cannabis, as well as changes, if any,
 necessary to improve and protect the public health  and  safety  of  New
 Yorkers.  Such  study  shall  be conducted two years after the effective

 S. 1509--A                         186                        A. 2009--A
 
 date of this act and shall be presented to the  governor,  the  majority
 leader  of  the  senate  and  the speaker of the assembly, no later than
 October 1, 2022.
   §  42. Section 102 of the alcoholic beverage control law is amended by
 adding a new subdivision 8 to read as follows:
   8. NO ALCOHOLIC BEVERAGE RETAIL LICENSEE SHALL SELL CANNABIS, NOR HAVE
 OR POSSESS A LICENSE OR PERMIT TO SELL CANNABIS, ON  THE  SAME  PREMISES
 WHERE ALCOHOLIC BEVERAGES ARE SOLD.
   §  43.  Subdivisions  1,  4,  5,  6, 7 and 13 of section 12-102 of the
 general obligations law, as added by chapter 406 of the  laws  of  2000,
 are amended to read as follows:
   1.  "Illegal  drug"  means any controlled substance [or marijuana] the
 possession of which is an offense under the public  health  law  or  the
 penal law.
   4.  "Grade  one  violation"  means  possession of one-quarter ounce or
 more, but less than four ounces, or distribution of less than one  ounce
 of  an illegal drug [other than marijuana, or possession of one pound or
 twenty-five plants or more, but less than four pounds or  fifty  plants,
 or distribution of less than one pound of marijuana].
   5.  "Grade two violation" means possession of four ounces or more, but
 less than eight ounces, or distribution of one ounce or more,  but  less
 than two ounces, of an illegal drug [other than marijuana, or possession
 of  four pounds or more or fifty plants or distribution of more than one
 pound but less than ten pounds of marijuana].
   6. "Grade three violation" means possession of eight ounces  or  more,
 but less than sixteen ounces, or distribution of two ounces or more, but
 less  than  four  ounces,  of a specified illegal drug [or possession of
 eight pounds or more or seventy-five  plants  or  more,  but  less  than
 sixteen  pounds or one hundred plants, or distribution of more than five
 pounds but less than ten pounds of marijuana].
   7. "Grade four violation" means possession of sixteen ounces  or  more
 or  distribution  of four ounces or more of a specified illegal drug [or
 possession of sixteen pounds or more or one hundred plants  or  more  or
 distribution of ten pounds or more of marijuana].
   13. "Drug trafficker" means a person convicted of a class A or class B
 felony  controlled  substance  [or marijuana offense] who, in connection
 with the  criminal  conduct  for  which  he  or  she  stands  convicted,
 possessed, distributed, sold or conspired to sell a controlled substance
 [or  marijuana] which, by virtue of its quantity, the person's prominent
 role in the enterprise responsible for the sale or distribution of  such
 controlled  substance  and  other circumstances related to such criminal
 conduct  indicate  that  such  person's  criminal  possession,  sale  or
 conspiracy to sell such substance was not an isolated occurrence and was
 part  of  an ongoing pattern of criminal activity from which such person
 derived substantial income or resources and in which such person  played
 a leadership role.
   §  44.  Paragraph  (g)  of  subdivision 1 of section 488 of the social
 services law, as added by section 1 of part B of chapter 501 of the laws
 of 2012, is amended to read as follows:
   (g) "Unlawful use or administration of a controlled substance,"  which
 shall  mean any administration by a custodian to a service recipient of:
 a controlled substance as defined by article thirty-three of the  public
 health law, without a prescription; or other medication not approved for
 any  use  by  the  federal  food and drug administration, EXCEPT FOR THE
 ADMINISTRATION OF  MEDICAL  CANNABIS  WHEN  SUCH  ADMINISTRATION  IS  IN
 ACCORDANCE  WITH  ARTICLE  THREE OF THE CANNABIS LAW AND ANY REGULATIONS

 S. 1509--A                         187                        A. 2009--A
 
 PROMULGATED THEREUNDER AS WELL AS THE RULES, REGULATIONS,  POLICIES,  OR
 PROCEDURES  OF  THE  STATE  OVERSIGHT  AGENCY OR AGENCIES GOVERNING SUCH
 CUSTODIANS. It also  shall  include  a  custodian  unlawfully  using  or
 distributing  a  controlled substance as defined by article thirty-three
 of the public health law, at the workplace or while on duty.
   § 45. Paragraphs (e) and (f) of subdivision 1 of section  490  of  the
 social  services  law, as added by section 1 of part B of chapter 501 of
 the laws of 2012, are amended and a new paragraph (g) is added  to  read
 as follows:
   (e)  information  regarding  individual reportable incidents, incident
 patterns and trends, and  patterns  and  trends  in  the  reporting  and
 response  to  reportable incidents is shared, consistent with applicable
 law, with the justice center, in the form and  manner  required  by  the
 justice  center  and,  for  facilities or provider agencies that are not
 state operated, with the applicable state oversight agency  which  shall
 provide such information to the justice center; [and]
   (f)  incident  review  committees  are established; provided, however,
 that the regulations may authorize an exemption from  this  requirement,
 when  appropriate,  based on the size of the facility or provider agency
 or other relevant factors. Such committees shall be composed of  members
 of  the  governing  body  of  the  facility or provider agency and other
 persons identified by the director of the facility or  provider  agency,
 including  some members of the following: direct support staff, licensed
 health care practitioners, service  recipients  and  representatives  of
 family,  consumer and other advocacy organizations, but not the director
 of the facility or provider agency. Such committee shall meet  regularly
 to:  (i)  review the timeliness, thoroughness and appropriateness of the
 facility or provider agency's responses to  reportable  incidents;  (ii)
 recommend  additional  opportunities  for improvement to the director of
 the facility or provider agency, if appropriate; (iii)  review  incident
 trends  and  patterns  concerning  reportable  incidents;  and (iv) make
 recommendations to the director of the facility or  provider  agency  to
 assist  in reducing reportable incidents. Members of the committee shall
 be trained in confidentiality laws and  regulations,  and  shall  comply
 with section seventy-four of the public officers law[.]; AND
   (G)  SAFE  STORAGE,  ADMINISTRATION, AND DIVERSION PREVENTION POLICIES
 REGARDING CONTROLLED SUBSTANCES AND MEDICAL MARIHUANA.
   § 46. Subdivision 1 of section 505 of the agriculture and markets law,
 as added by chapter 524 of the laws of  2014,  is  amended  to  read  as
 follows:
   1.  "Industrial  hemp" means the plant Cannabis sativa L. and any part
 of  such  plant,  INCLUDING  THE  SEEDS  THEREOF  AND  ALL  DERIVATIVES,
 EXTRACTS,  CANNABINOIDS,  ISOMERS,  ACIDS,  SALTS, AND SALTS OF ISOMERS,
 whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
 tration of not more than 0.3 percent on a dry weight basis.
   §  47.  Section  506 of the agriculture and markets law, as amended by
 section 1 of part OO of chapter 58 of the laws of 2017,  is  amended  to
 read as follows:
   §  506.  Growth,  sale, distribution, transportation and processing of
 industrial hemp and products derived from such hemp permitted. [Notwith-
 standing any provision of law to the contrary, industrial] 1. INDUSTRIAL
 hemp and products derived from such hemp are agricultural products which
 may be grown, produced [and],  possessed  [in  the  state,  and],  sold,
 distributed,  transported  [or] AND/OR processed [either] in [or out of]
 state [as part of agricultural pilot programs pursuant to  authorization
 under  federal  law  and  the  provisions  of  this article] PURSUANT TO

 S. 1509--A                         188                        A. 2009--A
 
 AUTHORIZATION UNDER FEDERAL LAW, THE PROVISIONS OF THIS  ARTICLE  AND/OR
 THE  THE  CANNABIS  LAW.    [Notwithstanding any provision of law to the
 contrary restricting the growing  or  cultivating,  sale,  distribution,
 transportation  or  processing  of  industrial hemp and products derived
 from such hemp, and subject to authorization under federal law, the]
   2. THE commissioner may authorize the growing or cultivating of indus-
 trial hemp as part of  agricultural  pilot  programs  conducted  by  the
 department and/or an institution of higher education to study the growth
 and  cultivation,  sale,  distribution, transportation and processing of
 such hemp and products derived from such hemp provided  that  the  sites
 and  programs used for growing or cultivating industrial hemp are certi-
 fied by, and registered with, the department.
   3. IN ADDITION TO THE  DEPARTMENT'S  LICENSING  AUTHORITY  HEREINAFTER
 PROVIDED  IN  THIS  ARTICLE,  THE  OFFICE  OF  CANNABIS MANAGEMENT SHALL
 LICENSE AND REGULATE THE GROWTH, EXTRACTION, PROCESSING AND/OR  MANUFAC-
 TURING  OF HEMP FOR DERIVATIVES, EXTRACTS, CANNABINOIDS, ISOMERS, ACIDS,
 SALTS AND SALTS OR ISOMERS AND/OR HEMP  PRODUCTS  FOR  HUMAN  OR  ANIMAL
 CONSUMPTION  OR  USE (EXCEPT FOR THOSE FOOD AND/OR FOOD INGREDIENTS THAT
 ARE GENERALLY RECOGNIZED AS SAFE).
   4. NOTHING IN THIS SECTION SHALL LIMIT THE JURISDICTION OF THE DEPART-
 MENT UNDER ANY OTHER ARTICLE OF THE AGRICULTURE AND MARKETS LAW.
   § 48. Section 507 of the agriculture and markets law is REPEALED and a
 new section 507 is added to read as follows:
   § 507. LICENSING; FEES. 1. NO PERSON SHALL: (A) GROW  INDUSTRIAL  HEMP
 IN  THE  STATE  AND/OR  SELL  OR DISTRIBUTE INDUSTRIAL HEMP GROWN IN THE
 STATE UNLESS LICENSED BIENNIALLY BY THE COMMISSIONER OR (B) GROW,  PROC-
 ESS AND/OR PRODUCE INDUSTRIAL HEMP AND PRODUCTS DERIVED FROM HEMP IN THE
 STATE  OR  SELL  OR  DISTRIBUTE UNLESS AUTHORIZED BY THE COMMISSIONER AS
 PART OF AN AGRICULTURAL RESEARCH PILOT PROGRAM  ESTABLISHED  UNDER  THIS
 ARTICLE.
   2.  APPLICATION  FOR  A  LICENSE TO GROW INDUSTRIAL HEMP SHALL BE MADE
 UPON A FORM PRESCRIBED BY THE COMMISSIONER, ACCOMPANIED BY A NON-REFUND-
 ABLE APPLICATION FEE OF FIVE HUNDRED DOLLARS.
   3. THE APPLICANT SHALL FURNISH EVIDENCE OF HIS OR HER GOOD  CHARACTER,
 EXPERIENCE  AND  COMPETENCY, THAT THE APPLICANT HAS ADEQUATE FACILITIES,
 EQUIPMENT, PROCESS CONTROLS, TESTING CAPABILITY  AND  SECURITY  TO  GROW
 HEMP.
   4. GROWERS WHO INTEND TO CULTIVATE HEMP FOR CANNABINOIDS SHALL ALSO BE
 REQUIRED TO OBTAIN A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT.
   5.  A  RENEWAL  APPLICATION  SHALL BE SUBMITTED TO THE COMMISSIONER AT
 LEAST THIRTY DAYS PRIOR TO THE COMMENCEMENT OF THE NEXT LICENSE PERIOD.
   § 49. Section 508 of the agriculture and markets law is REPEALED and a
 new section 508 is added to read as follows:
   § 508. COMPLIANCE ACTION PLAN. IF THE COMMISSIONER  DETERMINES,  AFTER
 NOTICE  AND  AN OPPORTUNITY FOR HEARING, THAT A LICENSEE HAS NEGLIGENTLY
 VIOLATED A PROVISION OF THIS ARTICLE, THAT LICENSEE SHALL BE REQUIRED TO
 COMPLY WITH A CORRECTIVE ACTION PLAN ESTABLISHED BY THE COMMISSIONER  TO
 CORRECT THE VIOLATION BY A REASONABLE DATE AND TO PERIODICALLY REPORT TO
 THE  COMMISSIONER  WITH  RESPECT  TO THE LICENSEE'S COMPLIANCE WITH THIS
 ARTICLE FOR A PERIOD OF NO LESS THAN THE NEXT TWO CALENDAR YEARS FOLLOW-
 ING THE COMMENCEMENT DATE OF THE COMPLIANCE ACTION PLAN. THE  PROVISIONS
 OF  THIS SECTION SHALL NOT BE APPLICABLE TO RESEARCH PARTNERS CONDUCTING
 HEMP RESEARCH PURSUANT TO A RESEARCH PARTNER  AGREEMENT,  THE  TERMS  OF
 WHICH SHALL CONTROL.
   § 50. Section 509 of the agriculture and markets law is REPEALED and a
 new section 509 is added to read as follows:

 S. 1509--A                         189                        A. 2009--A
 
   §  509.  GRANTING,  SUSPENDING OR REVOKING LICENSES.  THE COMMISSIONER
 MAY DECLINE TO GRANT A NEW LICENSE, MAY DECLINE TO RENEW A LICENSE,  MAY
 SUSPEND  OR REVOKE A LICENSE ALREADY GRANTED AFTER DUE NOTICE AND OPPOR-
 TUNITY FOR HEARING WHENEVER HE OR SHE FINDS THAT:
   (1)  ANY  STATEMENT  CONTAINED  IN  AN APPLICATION FOR AN APPLICANT OR
 LICENSEE IS OR WAS FALSE OR MISLEADING;
   (2) THE APPLICANT OR  LICENSEE  DOES  NOT  HAVE  GOOD  CHARACTER,  THE
 REQUIRED  EXPERIENCE  AND/OR COMPETENCY, ADEQUATE FACILITIES, EQUIPMENT,
 PROCESS CONTROLS, TESTING CAPABILITY AND/OR SECURITY TO PRODUCE HEMP  OR
 PRODUCTS DERIVED FROM HEMP;
   (3)  THE  APPLICANT  OR  LICENSEE HAS FAILED OR REFUSED TO PRODUCE ANY
 RECORDS OR PROVIDE ANY INFORMATION DEMANDED BY THE COMMISSIONER  REASON-
 ABLY RELATED TO THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE; OR
   (4)  THE  APPLICANT  OR  LICENSEE,  OR ANY OFFICER, DIRECTOR, PARTNER,
 HOLDER OF TEN PERCENT OF THE VOTING STOCK, OR ANY OTHER PERSON  EXERCIS-
 ING  ANY POSITION OF MANAGEMENT OR CONTROL HAS FAILED TO COMPLY WITH ANY
 OF THE PROVISIONS OF THIS ARTICLE OR RULES AND  REGULATIONS  PROMULGATED
 PURSUANT THERETO.
   § 51. Section 510 of the agriculture and markets law is REPEALED and a
 new section 510 is added to read as follows:
   § 510. REGULATIONS.  THE COMMISSIONER MAY DEVELOP REGULATIONS CONSIST-
 ENT WITH THE PROVISIONS OF THIS ARTICLE FOR THE GROWING AND CULTIVATION,
 SALE,  DISTRIBUTION,  AND TRANSPORTATION OF INDUSTRIAL HEMP GROWN IN THE
 STATE, INCLUDING:
   (A) THE AUTHORIZATION OR LICENSING OF ANY PERSON WHO MAY:  ACQUIRE  OR
 POSSESS  HEMP  PLANTS  OR  SEEDS;  GROW OR CULTIVATE HEMP PLANTS; AND/OR
 SELL, PURCHASE, DISTRIBUTE, OR TRANSPORT SUCH PLANTS,  PLANT  PARTS,  OR
 SEEDS;
   (B)  MAINTAINING  RELEVANT  INFORMATION REGARDING LAND ON WHICH INDUS-
 TRIAL HEMP IS PRODUCED WITHIN THE STATE, INCLUDING THE LEGAL DESCRIPTION
 OF THE LAND, FOR A PERIOD OF NOT LESS THAN THREE CALENDAR YEARS;
   (C) THE PROCEDURE FOR TESTING OF INDUSTRIAL HEMP PRODUCED IN THE STATE
 FOR DELTA-9 TETRAHYDROCANNABINOL LEVELS, USING POST  DECARBOXYLATION  OR
 OTHER SIMILARLY RELIABLE METHODS;
   (D)  THE PROCEDURE FOR EFFECTIVE DISPOSAL OF INDUSTRIAL HEMP PLANTS OR
 PRODUCTS DERIVED FROM HEMP THAT ARE PRODUCED IN VIOLATION OF THIS  ARTI-
 CLE;
   (E)  A PROCEDURE FOR CONDUCTING AT LEAST A RANDOM SAMPLE OF INDUSTRIAL
 HEMP PRODUCERS TO VERIFY THAT HEMP IS NOT PRODUCED IN VIOLATION OF  THIS
 ARTICLE;
   (F) ANY REQUIRED SECURITY MEASURES; AND
   (G) SUCH OTHER AND FURTHER REGULATION AS THE COMMISSIONER DEEMS APPRO-
 PRIATE OR NECESSARY.
   § 52. Section 511 of the agriculture and markets law is REPEALED and a
 new section 511 is added to read as follows:
   §  511.  PROHIBITIONS.    EXCEPT AS AUTHORIZED BY STATE LAW, AND REGU-
 LATIONS PROMULGATED THEREUNDER,  THE  GROWTH,  CULTIVATION,  PROCESSING,
 SALE, AND/OR DISTRIBUTION OF INDUSTRIAL HEMP IS PROHIBITED.
   § 53. Section 512 of the agriculture and markets law is REPEALED and a
 new section 512 is added to read as follows:
   §  512.  INDUSTRIAL  HEMP  DATA COLLECTION AND BEST FARMING PRACTICES.
 THE COMMISSIONER SHALL HAVE THE POWER TO COLLECT AND  PUBLISH  DATA  AND
 RESEARCH  CONCERNING,  AMONG  OTHER  THINGS,  THE  GROWTH,  CULTIVATION,
 PRODUCTION AND  PROCESSING  METHODS  OF  INDUSTRIAL  HEMP  AND  PRODUCTS
 DERIVED  FROM  INDUSTRIAL  HEMP  AND  WORK  WITH THE CORNELL COOPERATIVE
 EXTENSION TO PROMOTE BEST FARMING PRACTICES FOR  INDUSTRIAL  HEMP  WHICH

 S. 1509--A                         190                        A. 2009--A
 
 ARE  COMPATIBLE  WITH STATE WATER QUALITY AND OTHER ENVIRONMENTAL OBJEC-
 TIVES.
   §  54.  Sections  513  and  514 of the agriculture and markets law are
 REPEALED and a new section 513 is added to read as follows:
   § 513. ACCESS TO CRIMINAL HISTORY INFORMATION THROUGH THE DIVISION  OF
 CRIMINAL  JUSTICE  SERVICES.    IN CONNECTION WITH THE ADMINISTRATION OF
 THIS ARTICLE, THE COMMISSIONER IS AUTHORIZED  TO  REQUEST,  RECEIVE  AND
 REVIEW  CRIMINAL  HISTORY  INFORMATION  THROUGH THE DIVISION OF CRIMINAL
 JUSTICE SERVICES (DIVISION) WITH RESPECT TO ANY PERSON SEEKING A LICENSE
 OR AUTHORIZATION TO UNDERTAKE A HEMP PILOT PROJECT. AT  THE  COMMISSION-
 ER'S REQUEST, EACH RESEARCHER, PRINCIPAL AND/OR OFFICER OF THE APPLICANT
 SHALL  SUBMIT TO THE DEPARTMENT HIS OR HER FINGERPRINTS IN SUCH FORM AND
 IN SUCH MANNER AS SPECIFIED BY THE DIVISION, FOR THE PURPOSE OF CONDUCT-
 ING A CRIMINAL HISTORY SEARCH AND RETURNING A REPORT THEREON IN  ACCORD-
 ANCE  WITH  THE  PROCEDURES AND REQUIREMENTS ESTABLISHED BY THE DIVISION
 PURSUANT TO THE PROVISIONS OF ARTICLE THIRTY-FIVE OF THE EXECUTIVE  LAW,
 WHICH  SHALL  INCLUDE  THE PAYMENT OF THE PRESCRIBED PROCESSING FEES FOR
 THE COST OF THE DIVISION'S FULL  SEARCH  AND  RETAIN  PROCEDURES  AND  A
 NATIONAL  CRIMINAL HISTORY RECORD CHECK. THE COMMISSIONER, OR HIS OR HER
 DESIGNEE, SHALL SUBMIT SUCH FINGERPRINTS AND THE PROCESSING FEE  TO  THE
 DIVISION.   THE DIVISION SHALL FORWARD TO THE COMMISSIONER A REPORT WITH
 RESPECT TO THE APPLICANT'S PREVIOUS  CRIMINAL  HISTORY,  IF  ANY,  OR  A
 STATEMENT  THAT THE APPLICANT HAS NO PREVIOUS CRIMINAL HISTORY ACCORDING
 TO ITS FILES. FINGERPRINTS SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE
 SERVICES PURSUANT TO THIS SUBDIVISION  MAY  ALSO  BE  SUBMITTED  TO  THE
 FEDERAL  BUREAU  OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY RECORD
 CHECK. IF ADDITIONAL COPIES OF FINGERPRINTS ARE REQUIRED, THE  APPLICANT
 SHALL FURNISH THEM UPON REQUEST.
   §  55. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the penal
 law, as added by chapter 90 of the laws of 2014, are amended to read  as
 follows:
 § 179.00 Criminal  diversion  of  medical  [marihuana]  CANNABIS;  defi-
            nitions.
   The following definitions are applicable to this article:
   1. "Medical [marihuana] CANNABIS" means medical  [marihuana]  CANNABIS
 as  defined  in [subdivision eight of section thirty-three hundred sixty
 of the public health law] SECTION THREE OF THE CANNABIS LAW.
   2. "Certification" means a certification, made under section  [thirty-
 three hundred sixty-one of the public health law] THIRTY OF THE CANNABIS
 LAW.
 § 179.05 Criminal  diversion  of  medical  [marihuana] CANNABIS; limita-
            tions.
   The provisions of this article shall not apply to:
   1. a practitioner authorized to issue a  certification  who  acted  in
 good faith in the lawful course of his or her profession; or
   2.  a  registered organization as that term is defined in [subdivision
 nine of section thirty-three hundred sixty of  the  public  health  law]
 SECTION  THIRTY-FOUR  OF THE CANNABIS LAW who acted in good faith in the
 lawful course of the practice of pharmacy; or
   3. a person who acted in good faith seeking treatment  for  A  medical
 condition  or assisting another person to obtain treatment for a medical
 condition.
 § 179.10 Criminal diversion of medical [marihuana] CANNABIS in the first
            degree.
   A person is guilty of criminal diversion of medical [marihuana] CANNA-
 BIS in the first degree when he or she is a practitioner, as  that  term

 S. 1509--A                         191                        A. 2009--A
 
 is  defined in [subdivision twelve of section thirty-three hundred sixty
 of the public health law] SECTION THREE OF THE CANNABIS LAW, who  issues
 a  certification  with  knowledge of reasonable grounds to know that (i)
 the  recipient  has  no medical need for it, or (ii) it is for a purpose
 other than to treat a serious condition as defined in [subdivision seven
 of section thirty-three hundred sixty of the public health law]  SECTION
 THREE OF THE CANNABIS LAW.
   Criminal diversion of medical [marihuana] CANNABIS in the first degree
 is a class E felony.
 § 179.11 Criminal  diversion  of  medical  [marihuana]  CANNABIS  in the
            second degree.
   A person is guilty of criminal diversion of medical [marihuana] CANNA-
 BIS in the second degree when he or  she  sells,  trades,  delivers,  or
 otherwise  provides  medical  [marihuana] CANNABIS to another with know-
 ledge or reasonable grounds to know that the recipient is not registered
 under [title five-A of article thirty-three of the  public  health  law]
 ARTICLE THREE OF THE CANNABIS LAW.
   Criminal  diversion  of  medical  [marihuana]  CANNABIS  in the second
 degree is a class B misdemeanor.
 § 179.15 Criminal retention of medical [marihuana] CANNABIS.
   A person is guilty of criminal retention of medical [marihuana] CANNA-
 BIS when, being a certified patient or designated  caregiver,  as  those
 terms  are  defined  in  [subdivisions three and five of section thirty-
 three hundred sixty of the  public  health  law,  respectively]  SECTION
 THREE  OF  THE  CANNABIS  LAW,  he  or she knowingly obtains, possesses,
 stores or maintains an amount of [marihuana] CANNABIS in excess  of  the
 amount he or she is authorized to possess under the provisions of [title
 five-A  of  article thirty-three of the public health law] ARTICLE THREE
 OF THE CANNABIS LAW.
   Criminal retention of medical [marihuana] CANNABIS is a class A misde-
 meanor.
   § 56. Section 220.78 of the penal law, as added by chapter 154 of  the
 laws of 2011, is amended to read as follows:
 § 220.78 Witness or victim of drug or alcohol overdose.
   1.  A  person who, in good faith, seeks health care for someone who is
 experiencing a drug  or  alcohol  overdose  or  other  life  threatening
 medical  emergency  shall  not be charged or prosecuted for a controlled
 substance offense under article two  hundred  twenty  or  a  [marihuana]
 CANNABIS  offense  under  article  two hundred twenty-one of this title,
 other than an offense involving sale for consideration or other  benefit
 or  gain, or charged or prosecuted for possession of alcohol by a person
 under age twenty-one years under section sixty-five-c of  the  alcoholic
 beverage  control  law,  or  for  possession of drug paraphernalia under
 article thirty-nine of the general business law,  with  respect  to  any
 controlled  substance,  [marihuana]  CANNABIS,  alcohol or paraphernalia
 that was obtained as a result of such seeking  or  receiving  of  health
 care.
   2.  A  person  who is experiencing a drug or alcohol overdose or other
 life threatening medical emergency and, in good faith, seeks health care
 for himself or herself or is the subject of such a  good  faith  request
 for  health  care,  shall  not be charged or prosecuted for a controlled
 substance offense under this article or a [marihuana]  CANNABIS  offense
 under  article  two  hundred  twenty-one  of  this  title, other than an
 offense involving sale for consideration or other benefit  or  gain,  or
 charged  or  prosecuted  for possession of alcohol by a person under age
 twenty-one years under section sixty-five-c of  the  alcoholic  beverage

 S. 1509--A                         192                        A. 2009--A
 
 control law, or for possession of drug paraphernalia under article thir-
 ty-nine  of  the  general  business  law, with respect to any substance,
 [marihuana] CANNABIS, alcohol or paraphernalia that was  obtained  as  a
 result of such seeking or receiving of health care.
   3. Definitions. As used in this section the following terms shall have
 the following meanings:
   (a)  "Drug or alcohol overdose" or "overdose" means an acute condition
 including, but not limited to, physical illness, coma,  mania,  hysteria
 or  death,  which  is  the  result of consumption or use of a controlled
 substance or alcohol and relates to an adverse reaction to or the  quan-
 tity  of  the  controlled substance or alcohol or a substance with which
 the controlled substance  or  alcohol  was  combined;  provided  that  a
 patient's  condition shall be deemed to be a drug or alcohol overdose if
 a prudent layperson, possessing an average  knowledge  of  medicine  and
 health, could reasonably believe that the condition is in fact a drug or
 alcohol overdose and (except as to death) requires health care.
   (b) "Health care" means the professional services provided to a person
 experiencing  a  drug  or alcohol overdose by a health care professional
 licensed, registered or certified under title eight of the education law
 or article thirty of the public health law who, acting within his or her
 lawful scope of practice, may provide diagnosis, treatment or  emergency
 services for a person experiencing a drug or alcohol overdose.
   4.  It  shall  be an affirmative defense to a criminal sale controlled
 substance offense under this article or a criminal sale  of  [marihuana]
 CANNABIS offense under article two hundred twenty-one of this title, not
 covered  by  subdivision one or two of this section, with respect to any
 controlled substance or [marihuana] CANNABIS which  was  obtained  as  a
 result of such seeking or receiving of health care, that:
   (a) the defendant, in good faith, seeks health care for someone or for
 him  or  herself who is experiencing a drug or alcohol overdose or other
 life threatening medical emergency; and
   (b) the defendant has  no  prior  conviction  for  the  commission  or
 attempted  commission  of a class A-I, A-II or B felony under this arti-
 cle.
   5. Nothing in this section shall be construed to bar the admissibility
 of any evidence in connection with the investigation and prosecution  of
 a  crime  with  regard  to  another defendant who does not independently
 qualify for the bar to prosecution or for the affirmative  defense;  nor
 with  regard  to other crimes committed by a person who otherwise quali-
 fies under this section; nor shall anything in this section be construed
 to bar any seizure pursuant to law, including but not limited to  pursu-
 ant  to  section  thirty-three hundred eighty-seven of the public health
 law.
   6. The bar to prosecution described in subdivisions  one  and  two  of
 this  section  shall  not apply to the prosecution of a class A-I felony
 under this article, and the affirmative defense described in subdivision
 four of this section shall not apply to the prosecution of a  class  A-I
 or A-II felony under this article.
   §  57. Subdivision 1 of section 260.20 of the penal law, as amended by
 chapter 362 of the laws of 1992, is amended as follows:
   1. He knowingly permits a child less than eighteen years old to  enter
 or  remain  in  or  upon a place, premises or establishment where sexual
 activity as defined by article one hundred thirty, two hundred thirty or
 two hundred sixty-three of this [chapter]  PART  or  activity  involving
 controlled  substances  as defined by article two hundred twenty of this
 [chapter or involving marihuana as defined by article two hundred  twen-

 S. 1509--A                         193                        A. 2009--A

 ty-one of this chapter] PART is maintained or conducted, and he knows or
 has  reason to know that such activity is being maintained or conducted;
 or
   § 58. Section 89-h of the state finance law, as added by chapter 90 of
 the laws of 2014, is amended to read as follows:
   §  89-h.  Medical  [marihuana] CANNABIS trust fund. 1. There is hereby
 established in the joint  custody  of  the  state  comptroller  and  the
 commissioner  of  taxation and finance a special fund to be known as the
 "medical [marihuana] CANNABIS trust fund."
   2. The medical [marihuana] CANNABIS trust fund shall  consist  of  all
 moneys  required  to  be  deposited  in the medical [marihuana] CANNABIS
 trust fund pursuant to the provisions of section four hundred ninety  of
 the tax law.
   3.  The moneys in the medical [marihuana] CANNABIS trust fund shall be
 kept separate and shall not be commingled with any other moneys  in  the
 custody  of the commissioner of taxation and finance and the state comp-
 troller.
   4. The moneys of the medical [marihuana] CANNABIS trust fund,  follow-
 ing  appropriation by the legislature, shall be allocated upon a certif-
 icate of approval of availability by  the  director  of  the  budget  as
 follows:   (a) Twenty-two and five-tenths percent of the monies shall be
 transferred to the counties in New  York  state  in  which  the  medical
 [marihuana] CANNABIS was manufactured and allocated in proportion to the
 gross  sales  originating from medical [marihuana] CANNABIS manufactured
 in each such county; (b)  twenty-two  and  five-tenths  percent  of  the
 moneys  shall  be transferred to the counties in New York state in which
 the medical [marihuana] CANNABIS was dispensed and allocated in  propor-
 tion  to the gross sales occurring in each such county; (c) five percent
 of the monies shall be transferred  to  the  office  of  alcoholism  and
 substance  abuse  services,  which shall use that revenue for additional
 drug abuse prevention, counseling and treatment services; and  (d)  five
 percent  of  the revenue received by the department shall be transferred
 to the division of criminal  justice  services,  which  shall  use  that
 revenue  for  a  program  of discretionary grants to state and local law
 enforcement agencies that demonstrate a need relating to  [title  five-A
 of  article  thirty-three of the public health law] ARTICLE THREE OF THE
 CANNABIS LAW; said grants could be used for personnel costs of state and
 local law enforcement agencies. For purposes of  this  subdivision,  the
 city of New York shall be deemed to be a county.
   § 59. Intentionally omitted.
   §  60.  The state finance law is amended by adding a new section 99-ff
 to read as follows:
   § 99-FF. NEW YORK STATE CANNABIS REVENUE  FUND.  1.  THERE  IS  HEREBY
 ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
 COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
 "NEW YORK STATE CANNABIS REVENUE FUND" (THE "FUND").
   2.  MONIES  IN  THE  FUND SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE
 COMMINGLED WITH ANY OTHER MONIES IN THE CUSTODY OF  THE  COMPTROLLER  OR
 THE  COMMISSIONER  OF  TAXATION  AND FINANCE. PROVIDED, HOWEVER THAT ANY
 MONIES OF THE FUND NOT REQUIRED FOR IMMEDIATE USE MAY, AT THE DISCRETION
 OF THE COMPTROLLER, IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET,  BE
 INVESTED  BY  THE COMPTROLLER IN OBLIGATIONS OF THE UNITED STATES OR THE
 STATE. THE PROCEEDS OF ANY SUCH INVESTMENT SHALL BE RETAINED BY THE FUND
 AS ASSETS TO BE USED FOR PURPOSES OF THE FUND.
   3. EXCEPT AS SET FORTH IN SUBDIVISIONS TWO AND FOUR OF  THIS  SECTION,
 MONIES  FROM THE FUND SHALL NOT BE USED TO MAKE PAYMENTS FOR ANY PURPOSE

 S. 1509--A                         194                        A. 2009--A
 
 OTHER THAN THE PURPOSES SET FORTH IN SUBDIVISIONS TWO AND FOUR  OF  THIS
 SECTION.
   4.  THE "NEW YORK STATE CANNABIS REVENUE FUND" SHALL CONSIST OF MONIES
 RECEIVED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO  SUBDI-
 VISIONS  (A) AND (B) OF SECTION FOUR HUNDRED NINETY-THREE OF THE TAX LAW
 AND ALL OTHER MONIES CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND
 OR SOURCE. MONIES OF SUCH FUND  SHALL  BE  EXPENDED  FOR  THE  FOLLOWING
 PURPOSES: ADMINISTRATION OF THE REGULATED CANNABIS PROGRAM, DATA GATHER-
 ING,  MONITORING AND REPORTING, THE GOVERNOR'S TRAFFIC SAFETY COMMITTEE,
 SMALL BUSINESS DEVELOPMENT AND LOANS, SUBSTANCE  ABUSE,  HARM  REDUCTION
 AND  MENTAL HEALTH TREATMENT AND PREVENTION, PUBLIC HEALTH EDUCATION AND
 INTERVENTION, RESEARCH ON CANNABIS USES AND APPLICATIONS, PROGRAM EVALU-
 ATION AND IMPROVEMENTS, AND ANY OTHER IDENTIFIED PURPOSE RECOMMENDED  BY
 THE EXECUTIVE DIRECTOR OF THE OFFICE OF CANNABIS MANAGEMENT AND APPROVED
 BY THE DIRECTOR OF THE BUDGET.
   §  61.  Subdivision  2  of  section  3371 of the public health law, as
 amended by chapter 90 of the  laws  of  2014,  is  amended  to  read  as
 follows:
   2. The prescription monitoring program registry may be accessed, under
 such  terms  and  conditions  as  are  established by the department for
 purposes of maintaining the security and confidentiality of the informa-
 tion contained in the registry, by:
   (a) a practitioner, or a  designee  authorized  by  such  practitioner
 pursuant  to  paragraph  (b)  of subdivision two of section thirty-three
 hundred forty-three-a or section thirty-three hundred sixty-one of  this
 article,  for  the  purposes  of:  (i) informing the practitioner that a
 patient may be under treatment with a controlled  substance  by  another
 practitioner;  (ii)  providing  the  practitioner  with notifications of
 controlled substance activity as  deemed  relevant  by  the  department,
 including  but not limited to a notification made available on a monthly
 or other periodic basis through the registry  of  controlled  substances
 activity  pertaining  to  his or her patient; (iii) allowing the practi-
 tioner, through consultation  of  the  prescription  monitoring  program
 registry,  to  review his or her patient's controlled substances history
 as required by section thirty-three hundred  forty-three-a  [or  section
 thirty-three  hundred  sixty-one] of this article; and (iv) providing to
 his or her patient, or person authorized pursuant to  paragraph  (j)  of
 subdivision  one of this section, upon request, a copy of such patient's
 controlled substance history as is available to the practitioner through
 the prescription monitoring program registry; or
   (b) a pharmacist, pharmacy intern or other designee authorized by  the
 pharmacist  pursuant  to  paragraph  (b) of subdivision three of section
 thirty-three hundred forty-three-a of this article, for the purposes of:
 (i) consulting the prescription monitoring program  registry  to  review
 the  controlled substances history of an individual for whom one or more
 prescriptions for controlled substances or certifications for  marihuana
 is presented to the pharmacist, pursuant to section thirty-three hundred
 forty-three-a  of  this  article; and (ii) receiving from the department
 such notifications of controlled substance activity as are  made  avail-
 able by the department; or
   (c)  an  individual  employed  by  a  registered  organization for the
 purpose of consulting the prescription monitoring  program  registry  to
 review  the  controlled substances history of an individual for whom one
 or more certifications for [marihuana] CANNABIS  is  presented  to  that
 registered  organization[,  pursuant  to  section  thirty-three  hundred
 sixty-four of this article]. Unless otherwise authorized by  this  arti-

 S. 1509--A                         195                        A. 2009--A
 
 cle,  an  individual  employed  by  a  registered  organization  will be
 provided access to the  prescription  monitoring  program  in  the  sole
 discretion of the commissioner.
   §  62.  Subdivision  3  of section 853 of the general business law, as
 added by chapter 90 of the laws of 2014, is amended to read as follows:
   3. This article shall not apply to any sale, furnishing or  possession
 which  is  for  a  lawful purpose under [title five-A of article thirty-
 three of the public health law] THE CANNABIS LAW.
   § 63. Subdivision 5 of section 410.91 of the criminal  procedure  law,
 as  amended  by  chapter  90  of the laws of 2014, is amended to read as
 follows:
   5. For the purposes of this  section,  a  "specified  offense"  is  an
 offense  defined  by  any  of the following provisions of the penal law:
 burglary in the third degree as  defined  in  section  140.20,  criminal
 mischief  in  the  third  degree  as defined in section 145.05, criminal
 mischief in the second degree as defined in section 145.10, grand larce-
 ny in the fourth degree as defined in subdivision one, two, three, four,
 five, six, eight, nine or ten of section 155.30, grand  larceny  in  the
 third  degree  as  defined  in section 155.35 (except where the property
 consists of one or more firearms, rifles or shotguns), unauthorized  use
 of a vehicle in the second degree as defined in section 165.06, criminal
 possession  of stolen property in the fourth degree as defined in subdi-
 vision one,  two,  three,  five  or  six  of  section  165.45,  criminal
 possession  of stolen property in the third degree as defined in section
 165.50 (except where the property consists  of  one  or  more  firearms,
 rifles  or shotguns), forgery in the second degree as defined in section
 170.10, criminal possession of a forged instrument in the second  degree
 as defined in section 170.25, unlawfully using slugs in the first degree
 as  defined in section 170.60, criminal diversion of medical [marihuana]
 CANNABIS in the first degree as defined in section 179.10 or an  attempt
 to commit any of the aforementioned offenses if such attempt constitutes
 a  felony  offense;  or  a class B felony offense defined in article two
 hundred twenty where a sentence is imposed pursuant to paragraph (a)  of
 subdivision two of section 70.70 of the penal law; or any class C, class
 D or class E controlled substance [or marihuana] CANNABIS felony offense
 as defined in article two hundred twenty or two hundred twenty-one.
   § 63-a. Subdivision 5 of section 410.91 of the criminal procedure law,
 as  amended  by section 8 of part AAA of chapter 56 of the laws of 2009,
 is amended to read as follows:
   5. For the purposes of this  section,  a  "specified  offense"  is  an
 offense  defined  by  any  of the following provisions of the penal law:
 burglary in the third degree as  defined  in  section  140.20,  criminal
 mischief  in  the  third  degree  as defined in section 145.05, criminal
 mischief in the second degree as defined in section 145.10, grand larce-
 ny in the fourth degree as defined in subdivision one, two, three, four,
 five, six, eight, nine or ten of section 155.30, grand  larceny  in  the
 third  degree  as  defined  in section 155.35 (except where the property
 consists of one or more firearms, rifles or shotguns), unauthorized  use
 of a vehicle in the second degree as defined in section 165.06, criminal
 possession  of stolen property in the fourth degree as defined in subdi-
 vision one,  two,  three,  five  or  six  of  section  165.45,  criminal
 possession  of stolen property in the third degree as defined in section
 165.50 (except where the property consists  of  one  or  more  firearms,
 rifles  or shotguns), forgery in the second degree as defined in section
 170.10, criminal possession of a forged instrument in the second  degree
 as defined in section 170.25, unlawfully using slugs in the first degree

 S. 1509--A                         196                        A. 2009--A
 
 as  defined in section 170.60, or an attempt to commit any of the afore-
 mentioned offenses if such attempt constitutes a felony  offense;  or  a
 class  B  felony  offense  defined in article two hundred twenty where a
 sentence  is  imposed  pursuant  to  paragraph (a) of subdivision two of
 section 70.70 of the penal law; or any class  C,  class  D  or  class  E
 controlled  substance  or [marihuana] CANNABIS felony offense as defined
 in article two hundred twenty or two hundred twenty-one.
   § 63-b. The criminal procedure law is amended by adding a new  section
 440.46-a to read as follows:
   § 440.46-A MOTION  FOR  RESENTENCE; PERSONS CONVICTED OF CERTAIN MARI-
 HUANA OFFENSES.   1.  A  PERSON  CURRENTLY  SERVING  A  SENTENCE  FOR  A
 CONVICTION,  WHETHER  BY  TRIAL OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD
 NOT HAVE BEEN GUILTY OF AN OFFENSE OR WHO WOULD HAVE BEEN  GUILTY  OF  A
 LESSER  OFFENSE ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS
 SECTION BEEN IN EFFECT AT THE TIME OF HIS OR HER CONVICTION MAY PETITION
 FOR A RECALL OR DISMISSAL  OF  SENTENCE  BEFORE  THE  TRIAL  COURT  THAT
 ENTERED  THE JUDGMENT OF CONVICTION IN HIS OR HER CASE TO REQUEST RESEN-
 TENCING OR DISMISSAL IN ACCORDANCE WITH ARTICLE TWO  HUNDRED  TWENTY-ONE
 OF  THE  PENAL LAW.  2. UPON RECEIVING A MOTION UNDER SUBDIVISION ONE OF
 THIS SECTION THE COURT SHALL PRESUME THE MOVANT SATISFIES  THE  CRITERIA
 IN  SUBDIVISION ONE OF THIS SECTION UNLESS THE PARTY OPPOSING THE MOTION
 PROVES BY CLEAR AND CONVINCING EVIDENCE THAT THE MOVANT DOES NOT SATISFY
 THE CRITERIA. IF THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE OF
 THIS SECTION, THE COURT SHALL GRANT THE MOTION TO VACATE THE SENTENCE OR
 TO  RESENTENCE  BECAUSE  IT  IS  LEGALLY  INVALID.  IN  EXERCISING   ITS
 DISCRETION,  THE  COURT  MAY  CONSIDER, BUT SHALL NOT BE LIMITED TO, THE
 FOLLOWING: A) THE MOVANT'S CRIMINAL CONVICTION  HISTORY,  INCLUDING  THE
 TYPE OF CRIMES COMMITTED, THE EXTENT OF INJURY TO VICTIMS, THE LENGTH OF
 PRIOR  PRISON  COMMITMENTS,  AND  THE  REMOTENESS OF THE CRIMES. (B) THE
 MOVANT'S DISCIPLINARY RECORD AND RECORD OF REHABILITATION  WHILE  INCAR-
 CERATED.  3. A PERSON WHO IS SERVING A SENTENCE AND RESENTENCED PURSUANT
 TO  SUBDIVISION  TWO  OF THIS SECTION SHALL BE GIVEN CREDIT FOR ANY TIME
 ALREADY SERVED AND SHALL BE SUBJECT TO SUPERVISION FOR ONE YEAR  FOLLOW-
 ING  COMPLETION  OF  HIS  OR  HER TIME IN CUSTODY OR SHALL BE SUBJECT TO
 WHATEVER SUPERVISION TIME HE OR SHE WOULD HAVE OTHERWISE BEEN SUBJECT TO
 AFTER  RELEASE,  WHICHEVER  IS  SHORTER,  UNLESS  THE  COURT,   IN   ITS
 DISCRETION,  AS PART OF ITS RESENTENCING ORDER, RELEASES THE PERSON FROM
 SUPERVISION. SUCH PERSON IS SUBJECT TO PAROLE SUPERVISION UNDER  SECTION
 60.04  OF  THE PENAL LAW OR POST-RELEASE SUPERVISION UNDER SECTION 70.45
 OF THE PENAL LAW BY THE DESIGNATED AGENCY AND THE  JURISDICTION  OF  THE
 COURT  IN THE COUNTY IN WHICH THE OFFENDER IS RELEASED OR RESIDES, OR IN
 WHICH AN ALLEGED VIOLATION OF SUPERVISION HAS OCCURRED, FOR THE  PURPOSE
 OF HEARING PETITIONS TO REVOKE SUPERVISION AND IMPOSE A TERM OF CUSTODY.
 4.  UNDER NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS SECTION RESULT IN
 THE IMPOSITION OF A TERM LONGER THAN THE ORIGINAL SENTENCE, OR THE REIN-
 STATEMENT OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA  AGREEMENT.
 5. A PERSON WHO HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION UNDER
 THE  FORMER  ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETHER BY
 TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN GUILTY  OF  AN
 OFFENSE  OR  WHO WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND AFTER
 THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN  IN  EFFECT  AT
 THE  TIME  OF  HIS OR HER CONVICTION, MAY FILE AN APPLICATION BEFORE THE
 TRIAL COURT THAT ENTERED THE JUDGMENT OF CONVICTION IN HIS OR  HER  CASE
 TO  HAVE  THE CONVICTION, IN ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-
 ONE OF THE PENAL LAW:(A) DISMISSED BECAUSE THE PRIOR CONVICTION  IS  NOW
 LEGALLY  INVALID  AND  SEALED  IN ACCORDANCE WITH SECTION 160.50 OF THIS

 S. 1509--A                         197                        A. 2009--A
 
 CHAPTER;(B) REDESIGNATED (OR "RECLASSIFIED") AS A VIOLATION  AND  SEALED
 IN  ACCORDANCE  WITH  SECTION 160.50 OF THIS CHAPTER; OR(C) REDESIGNATED
 (RECLASSIFIED) AS A MISDEMEANOR.  6. THE COURT SHALL PRESUME  THE  PETI-
 TIONER  SATISFIES  THE  CRITERIA  IN  SUBDIVISION  FIVE UNLESS THE PARTY
 OPPOSING THE APPLICATION PROVES BY CLEAR AND  CONVINCING  EVIDENCE  THAT
 THE  PETITIONER  DOES NOT SATISFY THE CRITERIA IN SUBDIVISION FIVE. ONCE
 THE APPLICANT SATISFIES THE CRITERIA  IN  SUBDIVISION  FIVE,  THE  COURT
 SHALL  REDESIGNATE  (OR  "RECLASSIFY")  THE CONVICTION AS A MISDEMEANOR,
 REDESIGNATE (RECLASSIFY) THE CONVICTION AS  A  VIOLATION  AND  SEAL  THE
 CONVICTION,  OR DISMISS AND SEAL THE CONVICTION AS LEGALLY INVALID UNDER
 THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT THE TIME OF HIS  OR  HER
 CONVICTION.   7. UNLESS REQUESTED BY THE APPLICANT, NO HEARING IS NECES-
 SARY TO GRANT OR DENY AN APPLICATION FILED  UNDER  SUBDIVISION  FIVE  OF
 THIS  SECTION.  8. ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED
 UNDER SUBDIVISION TWO OR DESIGNATED AS A MISDEMEANOR OR VIOLATION  UNDER
 SUBDIVISION  SIX  OF  THIS  SECTION SHALL BE CONSIDERED A MISDEMEANOR OR
 VIOLATION FOR ALL PURPOSES. ANY MISDEMEANOR CONVICTION THAT  IS  VACATED
 AND RESENTENCED UNDER SUBDIVISION TWO OF THIS SECTION OR DESIGNATED AS A
 VIOLATION  UNDER  SUBDIVISION  SIX OF THIS SECTION SHALL BE CONSIDERED A
 VIOLATION FOR ALL PURPOSES.  9. IF THE COURT THAT  ORIGINALLY  SENTENCED
 THE MOVANT IS NOT AVAILABLE, THE PRESIDING JUDGE SHALL DESIGNATE ANOTHER
 JUDGE  TO  RULE  ON  THE  PETITION OR APPLICATION.   10. NOTHING IN THIS
 SECTION IS INTENDED TO DIMINISH  OR  ABROGATE  ANY  RIGHTS  OR  REMEDIES
 OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.  11. NOTHING IN THIS
 AND RELATED SECTIONS IS INTENDED TO DIMINISH OR ABROGATE THE FINALITY OF
 JUDGEMENTS  IN  ANY CASE NOT FALLING WITHIN THE PURVIEW OF THIS SECTION.
 12. THE PROVISIONS OF THIS  SECTION  SHALL  APPLY  EQUALLY  TO  JUVENILE
 DELINQUENCY  ADJUDICATIONS  AND  DISPOSITIONS UNDER SECTION FIVE HUNDRED
 ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
 AN OFFENSE OR WOULD HAVE BEEN GUILTY OF  A  LESSER  OFFENSE  UNDER  THIS
 SECTION  HAD  THIS  SECTION  BEEN  IN  EFFECT  AT THE TIME OF HIS OR HER
 CONVICTION.  13. THE OFFICE OF COURT ADMINISTRATION SHALL PROMULGATE AND
 MAKE AVAILABLE ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS
 AND APPLICATIONS PROVIDED IN THIS  SECTION  NO  LATER  THAN  SIXTY  DAYS
 FOLLOWING THE EFFECTIVE DATE OF THIS SECTION.
   §  64.  This act shall take effect immediately; provided, however that
 sections thirty-seven and thirty-eight of this act shall take effect  on
 April 1, 2020, and shall apply on and after such date: (a) to the culti-
 vation  of cannabis flower and cannabis trim transferred by a cultivator
 who is not a wholesaler; (b) to the cultivation of cannabis  flower  and
 cannabis trim sold or transferred to a retail dispensary by a cultivator
 who is a wholesaler; and (c) to the sale or transfer of adult use canna-
 bis  products to a retail dispensary; provided, further, that the amend-
 ments to article 179 of the penal law made by section fifty-five of this
 act shall not affect the repeal of such article and shall be  deemed  to
 be  repealed therewith; provided further, that the amendments to section
 89-h of the state finance law made by section fifty-eight  of  this  act
 shall not affect the repeal of such section and shall be deemed repealed
 therewith;  provided  further,  that the amendments to section 221.00 of
 the penal law made by section fifteen of this act shall  be  subject  to
 the  expiration  of  such  section when upon such date the provisions of
 section fifteen-a of this act shall take effect; provided, however, that
 the amendments to subdivision 2 of section 3371 of the public health law
 made by section sixty-one of this act shall not affect the expiration of
 such subdivision and shall  be  deemed  to  expire  therewith;  provided
 further,  that  the  amendments  to  subdivision 3 of section 853 of the

 S. 1509--A                         198                        A. 2009--A
 
 general business law made by section sixty-two of  this  act  shall  not
 affect the repeal of such subdivision and shall be deemed to be repealed
 therewith; and provided further, that the amendments to subdivision 5 of
 section  410.91 of the penal law made by section sixty-three of this act
 shall be subject to the expiration and  reversion  of  such  subdivision
 when  upon such date the provisions of section sixty-three-a of this act
 shall take effect.
 
                                  PART WW
 
   Section 1. Section 1166-a of the tax law, as added  by  section  1  of
 part F of chapter 25 of the laws of 2009, is amended to read as follows:
   § 1166-a. Special supplemental tax on passenger car rentals WITHIN THE
 METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT. (a) In addition to the
 tax imposed under section eleven hundred sixty of this  article  and  in
 addition  to  any  tax  imposed under any other article of this chapter,
 there is hereby imposed and there shall be paid a tax  at  the  rate  of
 five  percent  upon  the  receipts  from every rental of a passenger car
 which is a retail sale of such passenger  car  within  the  metropolitan
 commuter  transportation district as defined in [subdivision] SUBSECTION
 (a) of section eight hundred of this chapter.
   (b) Except to the extent that a  passenger  car  rental  described  in
 subdivision  (a)  of this section, OR SECTION ELEVEN HUNDRED SIXTY-SIX-B
 OF THIS ARTICLE, has already been or will be subject to the tax  imposed
 under such subdivision OR SECTION and except as otherwise exempted under
 this article, there is hereby imposed on every person and there shall be
 paid  a use tax for the use within the metropolitan commuter transporta-
 tion district as defined in  [subdivision]  SUBSECTION  (a)  of  section
 eight  hundred  of this chapter; of any passenger car rented by the user
 [which] THAT is a purchase at retail of  such  passenger  car,  but  not
 including  any  lease  of  a  passenger  car to which subdivision (i) of
 section eleven hundred eleven of this chapter applies. For  purposes  of
 this  [paragraph]  SUBDIVISION,  the  tax  shall  be at the rate of five
 percent of the consideration given or contracted to be  given  for  such
 property,  or  for  the  use of such property, including any charges for
 shipping or delivery as described in paragraph three of subdivision  (b)
 of  section eleven hundred one of this chapter, but excluding any credit
 for tangible personal property accepted in part payment and intended for
 resale.
   § 2. The tax law is amended by adding a new section 1166-b to read  as
 follows:
   § 1166-B. SPECIAL SUPPLEMENTAL TAX ON PASSENGER CAR RENTALS OUTSIDE OF
 THE  METROPOLITAN  COMMUTER  TRANSPORTATION DISTRICT. (A) IN ADDITION TO
 THE TAX IMPOSED UNDER SECTION ELEVEN HUNDRED SIXTY OF THIS  ARTICLE  AND
 IN  ADDITION TO ANY TAX IMPOSED UNDER ANY OTHER ARTICLE OF THIS CHAPTER,
 THERE IS HEREBY IMPOSED AND THERE SHALL BE PAID A TAX  AT  THE  RATE  OF
 FIVE PERCENT UPON THE RECEIPTS FROM EVERY RENTAL OF A PASSENGER CAR THAT
 IS   NOT  SUBJECT  TO  THE  TAX  DESCRIBED  IN  SECTION  ELEVEN  HUNDRED
 SIXTY-SIX-A OF THIS ARTICLE, BUT WHICH IS A RETAIL SALE OF SUCH  PASSEN-
 GER CAR WITHIN THE STATE.
   (B)  EXCEPT  TO  THE  EXTENT  THAT A PASSENGER CAR RENTAL DESCRIBED IN
 SUBDIVISION  (A)  OF  THIS  SECTION  OR    IN  SECTION  ELEVEN   HUNDRED
 SIXTY-SIX-A OF THIS ARTICLE, HAS ALREADY BEEN SUBJECT TO THE TAX IMPOSED
 UNDER  SUCH  SUBDIVISION  OR  SECTION,  AND EXCEPT AS OTHERWISE EXEMPTED
 UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED ON EVERY  PERSON  AND  THERE
 SHALL  BE  PAID  A USE TAX FOR THE USE WITHIN THE STATE OF ANY PASSENGER

 S. 1509--A                         199                        A. 2009--A
 
 CAR RENTED BY THE USER THAT IS A PURCHASE AT RETAIL  OF  SUCH  PASSENGER
 CAR, BUT NOT INCLUDING ANY LEASE OF A PASSENGER CAR TO WHICH SUBDIVISION
 (I)  OF  SECTION  ELEVEN  HUNDRED  ELEVEN  OF  THIS CHAPTER APPLIES. FOR
 PURPOSES  OF  THIS  SUBDIVISION,  THE  TAX  SHALL BE AT THE RATE OF FIVE
 PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED TO BE  GIVEN  FOR  SUCH
 PROPERTY,  OR  FOR  THE  USE OF SUCH PROPERTY, INCLUDING ANY CHARGES FOR
 SHIPPING OR DELIVERY AS DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION  (B)
 OF  SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, BUT EXCLUDING ANY CREDIT
 FOR TANGIBLE PERSONAL PROPERTY ACCEPTED IN PART PAYMENT AND INTENDED FOR
 RESALE.
   § 3. Section 1167 of the tax law, as amended by section 3 of part F of
 chapter 25 of the laws of 2009, is amended to read as follows:
   § 1167. Deposit and disposition of revenue. All  taxes,  interest  and
 penalties  collected  or received by the commissioner under this article
 shall be deposited and disposed of pursuant to the provisions of section
 one hundred seventy-one-a of this chapter, except that  after  reserving
 amounts  in  accordance  with  such section one hundred seventy-one-a of
 this chapter, the remainder shall be paid  by  the  comptroller  to  the
 credit  of  the  highway  and  bridge  trust fund established by section
 eighty-nine-b of the state finance law, provided, however[,]: (A) taxes,
 interest and penalties collected or received pursuant to section  eleven
 hundred  sixty-six-a  of this article shall be paid to the credit of the
 metropolitan transportation authority aid trust account of the metropol-
 itan transportation authority financial assistance fund  established  by
 section  ninety-two-ff of the state finance law; AND (B) TAXES, INTEREST
 AND PENALTIES COLLECTED OR RECEIVED PURSUANT TO SECTION  ELEVEN  HUNDRED
 SIXTY-SIX-B  OF  THIS  ARTICLE SHALL BE PAID TO THE CREDIT OF THE PUBLIC
 TRANSPORTATION  SYSTEMS  OPERATING  ASSISTANCE  ACCOUNT  ESTABLISHED  BY
 SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW.
   §  4. This act shall take effect September 1, 2019, and shall apply to
 rentals of passenger cars commencing on and after such date  whether  or
 not  under  a prior contract; provided, however where such passenger car
 rentals are billed on a monthly, quarterly or other  period  basis,  the
 tax  imposed  by  this  act shall apply to the rental for such period if
 more than half of the days included in such period are  days  subsequent
 to such effective date.
 
                                  PART XX
 
   Section 1. The tax law is amended by adding a new article 20-D to read
 as follows:
                               ARTICLE 20-D
                       EXCISE TAX ON SALE OF OPIOIDS
 SECTION 497. DEFINITIONS.
         498. IMPOSITION OF EXCISE TAX.
         499. RETURNS TO BE SECRET.
   § 497. DEFINITIONS. THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
 INGS WHEN USED IN THIS ARTICLE.
   (A)  "OPIOID" SHALL MEAN AN "OPIATE" AS DEFINED BY SUBDIVISION TWENTY-
 THREE OF SECTION THIRTY-THREE HUNDRED TWO OF THE PUBLIC HEALTH  LAW  AND
 ANY  NATURAL,  SYNTHETIC, OR SEMISYNTHETIC "NARCOTIC DRUG" AS DEFINED BY
 SUBDIVISION TWENTY-TWO OF SUCH SECTION THAT HAS AGONIST,  PARTIAL  AGON-
 IST,  OR  AGONIST/ANTAGONIST MORPHINE-LIKE ACTIVITIES OR EFFECTS SIMILAR
 TO NATURAL OPIUM ALKALOIDS, AND ANY DERIVATIVE, CONGENER, OR COMBINATION
 THEREOF LISTED IN SCHEDULES II-V OF SECTION THIRTY-THREE HUNDRED SIX  OF

 S. 1509--A                         200                        A. 2009--A
 
 THE  PUBLIC  HEALTH LAW. THE TERM "OPIOID" SHALL NOT MEAN BUPRENORPHINE,
 METHADONE, OR MORPHINE.
   (B) "UNIT" SHALL MEAN A SINGLE FINISHED DOSAGE FORM OF AN OPIOID, SUCH
 AS A PILL, TABLET, CAPSULE, SUPPOSITORY, TRANSDERMAL PATCH, BUCCAL FILM,
 MILLILITER  OF  LIQUID,  MILLIGRAM  OF TOPICAL PREPARATION, OR ANY OTHER
 FORM.
   (C) "STRENGTH PER UNIT" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT,  AS
 MEASURED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC.
   (D)  "MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR" SHALL MEAN THAT
 REFERENCE STANDARD OF A PARTICULAR OPIOID AS IT RELATES  IN  POTENCY  TO
 MORPHINE AS DETERMINED BY THE COMMISSIONER OF HEALTH.
   (E)  "MORPHINE  MILLIGRAM  EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY
 ITS STRENGTH PER UNIT MULTIPLIED BY THE  MORPHINE  MILLIGRAM  EQUIVALENT
 CONVERSION FACTOR.
   (F)  "REGISTRANT"  SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSOCI-
 ATION REQUIRED TO BE REGISTERED  WITH  THE  EDUCATION  DEPARTMENT  AS  A
 WHOLESALER,  MANUFACTURER,  OR  OUTSOURCING FACILITY PURSUANT TO SECTION
 SIXTY-EIGHT HUNDRED EIGHT OR SECTION SIXTY-EIGHT HUNDRED EIGHT-B OF  THE
 EDUCATION  LAW,  AS WELL AS ANY PERSON, FIRM, CORPORATION OR ASSOCIATION
 THAT WOULD BE REQUIRED TO BE REGISTERED WITH THE EDUCATION DEPARTMENT AS
 A WHOLESALER, MANUFACTURER, OR OUTSOURCING  FACILITY  PURSUANT  TO  SUCH
 SECTION SIXTY-EIGHT HUNDRED EIGHT-B BUT FOR THE EXCEPTION IN SUBDIVISION
 TWO  OF  SUCH  SECTION; AND ANY PERSON, FIRM, CORPORATION OR ASSOCIATION
 REQUIRED TO BE REGISTERED WITH  THE HEALTH DEPARTMENT AS A  MANUFACTURER
 OR  DISTRIBUTOR  OF  A  CONTROLLED SUBSTANCE PURSUANT TO SECTION THIRTY-
 THREE HUNDRED TEN OF THE PUBLIC HEALTH LAW.
   (G) "WHOLESALE ACQUISITION COST" SHALL MEAN  THE  MANUFACTURER'S  LIST
 PRICE  FOR  AN  OPIOID  UNIT  TO WHOLESALERS OR DIRECT PURCHASERS IN THE
 UNITED STATES, NOT INCLUDING PROMPT PAY OR OTHER DISCOUNTS,  REBATES  OR
 REDUCTIONS IN PRICE, FOR THE MOST RECENT MONTH FOR WHICH THE INFORMATION
 IS  AVAILABLE,  AS  REPORTED IN WHOLESALE PRICE GUIDES OR OTHER PUBLICA-
 TIONS OF DRUG OR BIOLOGICAL PRICING DATA.
   (H) "SALE" SHALL MEAN ANY TRANSFER OF TITLE TO AN OPIOID FOR A CONSID-
 ERATION WHERE ACTUAL OR CONSTRUCTIVE POSSESSION OF SUCH OPIOID IS TRANS-
 FERRED TO THE PURCHASER OR ITS DESIGNEE IN THIS STATE. A SALE SHALL  NOT
 INCLUDE  THE  DISPENSING  OF  AN OPIOID PURSUANT TO A PRESCRIPTION TO AN
 ULTIMATE CONSUMER.
   § 498. IMPOSITION OF EXCISE TAX. (A) THERE IS HEREBY IMPOSED AN EXCISE
 TAX ON THE FIRST SALE OF ANY OPIOID IN THE STATE AT THE FOLLOWING RATES:
 (1) A  QUARTER OF A CENT PER MORPHINE  MILLIGRAM  EQUIVALENT  WHERE  THE
 WHOLESALE    ACQUISITION  COST  IS LESS THAN FIFTY CENTS, OR (2) ONE AND
 ONE-HALF CENTS PER  MORPHINE MILLIGRAM EQUIVALENT  WHERE  THE  WHOLESALE
 ACQUISITION COST IS FIFTY CENTS OR MORE. THE TAX IMPOSED BY THIS ARTICLE
 SHALL  BE  CHARGED  AGAINST AND PAID BY THE REGISTRANT MAKING SUCH FIRST
 SALE, AND SHALL ACCRUE AT THE TIME OF SUCH  SALE. THE ECONOMIC INCIDENCE
 OF THE TAX IMPOSED BY THIS ARTICLE MAY BE PASSED TO A PURCHASER. FOR THE
 PURPOSE OF THE PROPER ADMINISTRATION OF  THIS  ARTICLE  AND  TO  PREVENT
 EVASION OF THE TAX HEREBY IMPOSED, IT SHALL BE PRESUMED THAT ANY SALE OF
 AN OPIOID IN THIS STATE BY A REGISTRANT IS THE FIRST SALE OF SUCH IN THE
 STATE  UNTIL THE CONTRARY IS ESTABLISHED, AND THE BURDEN OF PROVING THAT
 ANY SALE IS NOT THE FIRST SALE IN THE STATE SHALL  BE  UPON  THE  REGIS-
 TRANT.
   (B)  EVERY REGISTRANT LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE SHALL
 FILE WITH THE COMMISSIONER A RETURN ON FORMS TO  BE  PRESCRIBED  BY  THE
 COMMISSIONER  SHOWING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT AND WHOLE-
 SALE ACQUISITION COSTS OF SUCH OPIOIDS  THAT  ARE  SUBJECT  TO  THE  TAX

 S. 1509--A                         201                        A. 2009--A
 
 IMPOSED BY THIS ARTICLE, THE AMOUNT OF TAX DUE THEREON, AND SUCH FURTHER
 INFORMATION AS THE COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE FILED
 FOR  QUARTERLY  PERIODS ENDING ON THE LAST DAY OF MARCH, JUNE, SEPTEMBER
 AND DECEMBER OF EACH YEAR. EACH RETURN SHALL BE FILED WITHIN TWENTY DAYS
 AFTER  THE END OF SUCH QUARTERLY PERIOD AND SHALL COVER ALL OPIOID SALES
 IN THE STATE MADE IN THE PRIOR QUARTER, EXCEPT  THAT  THE  FIRST  RETURN
 REQUIRED  TO  BE  FILED PURSUANT TO THIS SECTION SHALL BE DUE ON JANUARY
 TWENTIETH, TWO THOUSAND TWENTY, AND SHALL COVER ALL OPIOID SALES  OCCUR-
 RING IN THE PERIOD BETWEEN THE EFFECTIVE DATE OF THIS ARTICLE AND DECEM-
 BER  THIRTY-FIRST,  TWO  THOUSAND NINETEEN. EVERY REGISTRANT REQUIRED TO
 FILE A RETURN UNDER THIS SECTION SHALL,  AT  THE  TIME  OF  FILING  SUCH
 RETURN,  PAY  TO  THE  COMMISSIONER  THE TOTAL AMOUNT OF TAX DUE FOR THE
 PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED  WHEN  DUE,  THE
 TAX  SHALL  BE  DUE THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED.
 THE COMMISSIONER MAY REQUIRE THAT THE RETURNS AND PAYMENTS  REQUIRED  BY
 THIS SECTION BE FILED OR PAID ELECTRONICALLY.
   (C)  WHERE  A  SALE OF AN OPIOID BY A REGISTRANT HAS BEEN CANCELLED BY
 THE PURCHASER AND TAX UNDER THIS ARTICLE HAS PREVIOUSLY BEEN PAID BY THE
 REGISTRANT, THE COMMISSIONER SHALL ALLOW A CREDIT OR REFUND OF SUCH  TAX
 ON  A RETURN FOR A LATER PERIOD WITHIN THE LIMITATIONS PERIOD FOR CLAIM-
 ING A CREDIT OR REFUND AS PRESCRIBED BY SECTION ONE THOUSAND EIGHTY-SEV-
 EN OF THIS CHAPTER.
   (D) ALL SALES SLIPS, INVOICES, RECEIPTS, OR OTHER STATEMENTS OR  MEMO-
 RANDA  OF  SALE FROM ANY SALE OR PURCHASE OF OPIOIDS BY REGISTRANTS MUST
 BE RETAINED FOR A PERIOD OF SIX YEARS AFTER THE DUE DATE OF  THE  RETURN
 TO  WHICH  THEY RELATE, UNLESS THE COMMISSIONER PROVIDES FOR A DIFFERENT
 RETENTION PERIOD BY RULE OR REGULATION. SUCH RECORDS MUST BE  SUFFICIENT
 TO  DETERMINE  THE  NUMBER  OF UNITS TRANSFERRED ALONG WITH THE MORPHINE
 MILLIGRAM EQUIVALENT OF THE UNITS TRANSFERRED, AND OTHERWISE BE SUITABLE
 TO DETERMINE THE CORRECT AMOUNT OF  TAX  DUE.  SUCH  RECORDS  MUST  ALSO
 RECORD EITHER (1) THE ADDRESS FROM WHICH THE UNITS ARE SHIPPED OR DELIV-
 ERED,  ALONG  WITH  THE ADDRESS TO WHICH THE UNITS ARE SHIPPED OR DELIV-
 ERED, OR (2) THE PLACE AT WHICH ACTUAL PHYSICAL POSSESSION OF THE  UNITS
 IS  TRANSFERRED.  SUCH  RECORDS  SHALL  BE  PRODUCED  UPON DEMAND BY THE
 COMMISSIONER.
   (E) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE  SAME
 FORCE  AND  EFFECT  AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCORPO-
 RATED IN FULL INTO THIS ARTICLE AND HAD EXPRESSLY REFERRED  TO  THE  TAX
 IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH
 ARTICLE  TWENTY-SEVEN  IS  EITHER  INCONSISTENT WITH A PROVISION OF THIS
 ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE.
   (F) THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH THE
 COMMISSIONER IN ADMINISTERING  THIS  TAX,  INCLUDING  SHARING  WITH  THE
 COMMISSIONER PERTINENT INFORMATION ABOUT REGISTRANTS UPON THE REQUEST OF
 THE COMMISSIONER.
   (G) EACH REGISTRANT SHALL PROVIDE A REPORT TO THE DEPARTMENT OF HEALTH
 DETAILING  ALL OPIOIDS SOLD BY SUCH REGISTRANT IN THE STATE OF NEW YORK.
 SUCH REPORT SHALL INCLUDE:
   (I)  THE  REGISTRANT'S  NAME,  ADDRESS,  PHONE  NUMBER,  FEDERAL  DRUG
 ENFORCEMENT  AGENCY  (DEA)  REGISTRATION  NUMBER,  EDUCATION  DEPARTMENT
 REGISTRATION NUMBER, AND CONTROLLED SUBSTANCE LICENSE NUMBER  ISSUED  BY
 THE DEPARTMENT OF HEALTH, IF APPLICABLE;
   (II)  THE  NAME,  ADDRESS AND DEA REGISTRATION NUMBER OF THE ENTITY TO
 WHOM THE OPIOID WAS SOLD;
   (III) THE DATE OF THE SALE OF THE OPIOID;

 S. 1509--A                         202                        A. 2009--A
 
   (IV) THE GROSS RECEIPT TOTAL, IN DOLLARS, FOR EACH OPIOID SOLD;
   (V) THE NAME AND NATIONAL DRUG CODE OF THE OPIOID SOLD;
   (VI)  THE NUMBER OF CONTAINERS AND THE STRENGTH AND METRIC QUANTITY OF
 CONTROLLED SUBSTANCE IN EACH CONTAINER OF THE OPIOID SOLD;
   (VII) THE TOTAL NUMBER OF MORPHINE MILLIGRAM EQUIVALENTS SOLD; AND
   (VIII) ANY OTHER ELEMENTS AS DEEMED NECESSARY BY THE  COMMISSIONER  OF
 HEALTH.
   SUCH INFORMATION SHALL BE REPORTED ANNUALLY IN SUCH FORM AS DEFINED BY
 THE COMMISSIONER OF HEALTH AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF
 SECTION FOUR HUNDRED NINETY-NINE OF THIS ARTICLE.
   §  499.  RETURNS  TO BE SECRET. (A) EXCEPT IN ACCORDANCE WITH A PROPER
 JUDICIAL ORDER OR AS OTHERWISE PROVIDED FOR BY LAW, IT SHALL BE UNLAWFUL
 FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT, OR  ANY
 PERSON ENGAGED OR RETAINED BY SUCH DEPARTMENT ON AN INDEPENDENT CONTRACT
 BASIS OR ANY OTHER PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF THE
 CONTENTS OF A RETURN OR REPORT FILED PURSUANT TO THIS ARTICLE TO DIVULGE
 OR  MAKE  KNOWN  IN  ANY  MANNER THE   CONTENTS OR ANY OTHER INFORMATION
 RELATING TO THE BUSINESS OF A REGISTRANT   CONTAINED IN  ANY  RETURN  OR
 REPORT  REQUIRED  UNDER  THIS  ARTICLE.  THE OFFICERS   CHARGED WITH THE
 CUSTODY OF SUCH RETURNS OR REPORTS SHALL NOT BE REQUIRED TO PRODUCE  ANY
 OF  THEM  OR  EVIDENCE  OF  ANYTHING  CONTAINED IN THEM IN ANY ACTION OR
 PROCEEDING IN ANY COURT, EXCEPT  ON  BEHALF  OF  THE  STATE,  THE  STATE
 DEPARTMENT  OF  HEALTH, THE STATE DEPARTMENT OF EDUCATION OR THE COMMIS-
 SIONER IN AN ACTION OR  PROCEEDING UNDER THE PROVISIONS OF THIS  CHAPTER
 OR  ON  BEHALF  OF  THE STATE OR THE COMMISSIONER IN ANY OTHER ACTION OR
 PROCEEDING INVOLVING THE COLLECTION OF A TAX DUE UNDER THIS  CHAPTER  TO
 WHICH  THE  STATE  OR  THE  COMMISSIONER IS A PARTY OR A  CLAIMANT OR ON
 BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER THE  PROVISIONS OF
 THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR THE FACTS SHOWN THEREBY
 ARE DIRECTLY INVOLVED IN SUCH ACTION OR  PROCEEDING,  IN  ANY  OF  WHICH
 EVENTS  THE  COURT  MAY  REQUIRE  THE  PRODUCTION  OF,  AND MAY ADMIT IN
 EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE-
 BY AS ARE PERTINENT  TO THE ACTION OR PROCEEDING AND  NO  MORE.  NOTHING
 HEREIN  SHALL  BE CONSTRUED TO  PROHIBIT THE COMMISSIONER, IN HIS OR HER
 DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTIFIED COPY
 OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR FROM PROVIDING  ANY
 INFORMATION  CONTAINED  IN  ANY SUCH RETURN OR   REPORT, BY OR TO A DULY
 AUTHORIZED OFFICER OR EMPLOYEE OF THE STATE DEPARTMENT  OF HEALTH OR THE
 STATE DEPARTMENT OF EDUCATION; NOR TO PROHIBIT THE INSPECTION OR  DELIV-
 ERY  OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS  ARTI-
 CLE, OR THE PROVISION OF ANY INFORMATION CONTAINED THEREIN, BY OR TO THE
 ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES OF  THE  STATE  WHEN  AN
 ACTION   SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAP-
 TER IN WHICH SUCH RETURNS OR REPORTS OR  THE  FACTS  SHOWN  THEREBY  ARE
 DIRECTLY  INVOLVED;  NOR TO  PROHIBIT THE COMMISSIONER FROM PROVIDING OR
 CERTIFYING TO THE DIVISION OF BUDGET OR THE COMPTROLLER THE TOTAL NUMBER
 OF RETURNS OR REPORTS FILED UNDER THIS ARTICLE IN ANY  REPORTING  PERIOD
 AND  THE  TOTAL  COLLECTIONS  RECEIVED  THEREFROM;   NOR TO PROHIBIT THE
 INSPECTION OF THE RETURNS OR REPORTS REQUIRED UNDER THIS  ARTICLE BY THE
 COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE  DEPART-
 MENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF  ANY
 TAX  PAID  BY  A  REGISTRANT  OR OTHER PERSON UNDER THIS ARTICLE; NOR TO
 PROHIBIT THE DELIVERY TO A REGISTRANT, OR A  DULY  AUTHORIZED  REPRESEN-
 TATIVE  OF  SUCH  REGISTRANT,  A  CERTIFIED COPY OF ANY RETURN OR REPORT
 FILED BY SUCH REGISTRANT  PURSUANT TO THIS ARTICLE, NOR TO PROHIBIT  THE

 S. 1509--A                         203                        A. 2009--A
 
 PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION
 OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THEREOF.
   (B)(1) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS  OF  SUBDIVISION  (A) OF THIS SECTION SHALL BE DISMISSED FROM
 OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A
 PERIOD OF FIVE YEARS THEREAFTER.
   (2) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE  THIRTY-SEVEN
 OF THIS CHAPTER.
   §  2. Section 1825 of the tax law, as amended by section 3 of part NNN
 of chapter 59 of the laws of 2018, is amended to read as follows:
   § 1825. Violation of secrecy provisions of the  tax  law.--Any  person
 who violates the SECRECY provisions of [subdivision (b) of section twen-
 ty-one, subdivision one of section two hundred two, subdivision eight of
 section  two  hundred  eleven,  subdivision (a) of section three hundred
 fourteen, subdivision one or two of section four  hundred  thirty-seven,
 section  four  hundred  eighty-seven,  subdivision one or two of section
 five hundred fourteen, subsection (e) of section six hundred ninety-sev-
 en, subsection (a) of section nine hundred ninety-four, subdivision  (a)
 of  section eleven hundred forty-six, section twelve hundred eighty-sev-
 en, section twelve hundred ninety-six, section  twelve  hundred  ninety-
 nine-F,  subdivision  (a) of section fourteen hundred eighteen, subdivi-
 sion (a) of section fifteen hundred eighteen, subdivision (a) of section
 fifteen hundred fifty-five of] this chapter[, and] OR subdivision (e) of
 section 11-1797 of the administrative code of the city of New York shall
 be guilty of a misdemeanor.
   § 3. Subdivision 1 of section 171-a of the  tax  law,  as  amended  by
 section  3  of  part MM of chapter 59 of the laws of 2018, is amended to
 read as follows:
   1. All taxes, interest, penalties and fees collected  or  received  by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A (except as otherwise provided in section  two  hundred  eighty-
 four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except  as otherwise provided in section four hundred eighty-two there-
 of), twenty-B, TWENTY-D, twenty-one,  twenty-two,  twenty-four,  twenty-
 six,  twenty-eight  (except  as  otherwise  provided  in  section eleven
 hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
 nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
 hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
 chapter  shall  be  deposited daily in one account with such responsible
 banks, banking houses or trust companies as may  be  designated  by  the
 comptroller,  to  the  credit of the comptroller. Such an account may be
 established in one or more of such depositories. Such deposits shall  be
 kept  separate  and  apart from all other money in the possession of the
 comptroller. The comptroller shall require adequate  security  from  all
 such depositories. Of the total revenue collected or received under such
 articles  of  this  chapter,  the  comptroller shall retain in the comp-
 troller's hands such amount as the  commissioner  may  determine  to  be
 necessary  for  refunds  or  reimbursements  under such articles of this
 chapter out of which amount the comptroller shall  pay  any  refunds  or
 reimbursements to which taxpayers shall be entitled under the provisions
 of  such  articles of this chapter. The commissioner and the comptroller
 shall maintain a system  of  accounts  showing  the  amount  of  revenue
 collected  or  received from each of the taxes imposed by such articles.

 S. 1509--A                         204                        A. 2009--A
 
 The comptroller, after reserving the  amount  to  pay  such  refunds  or
 reimbursements,  shall,  on  or  before the tenth day of each month, pay
 into the state treasury to the credit of the general  fund  all  revenue
 deposited  under  this  section  during the preceding calendar month and
 remaining to the comptroller's credit on the last day of such  preceding
 month, (i) except that the comptroller shall pay to the state department
 of social services that amount of overpayments of tax imposed by article
 twenty-two  of  this  chapter  and  the interest on such amount which is
 certified to the comptroller by the commissioner as  the  amount  to  be
 credited against past-due support pursuant to subdivision six of section
 one  hundred  seventy-one-c  of  this  article, (ii) and except that the
 comptroller shall pay to the New York state  higher  education  services
 corporation  and the state university of New York or the city university
 of New York respectively that amount of overpayments of tax  imposed  by
 article twenty-two of this chapter and the interest on such amount which
 is  certified to the comptroller by the commissioner as the amount to be
 credited against the amount  of  defaults  in  repayment  of  guaranteed
 student loans and state university loans or city university loans pursu-
 ant  to subdivision five of section one hundred seventy-one-d and subdi-
 vision six of section one hundred seventy-one-e of this  article,  (iii)
 and  except further that, notwithstanding any law, the comptroller shall
 credit  to  the  revenue  arrearage   account,   pursuant   to   section
 ninety-one-a of the state finance law, that amount of overpayment of tax
 imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
 or thirty-three of this chapter, and  any  interest  thereon,  which  is
 certified  to  the  comptroller  by the commissioner as the amount to be
 credited against a past-due legally enforceable debt  owed  to  a  state
 agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
 hundred seventy-one-f of this article, provided, however, he shall cred-
 it to the special offset fiduciary account, pursuant to section  ninety-
 one-c  of the state finance law, any such amount creditable as a liabil-
 ity as set forth in paragraph (b) of  subdivision  six  of  section  one
 hundred  seventy-one-f of this article, (iv) and except further that the
 comptroller shall pay to the city of New York that amount of overpayment
 of tax imposed by article nine, nine-A,  twenty-two,  thirty,  thirty-A,
 thirty-B  or  thirty-three of this chapter and any interest thereon that
 is certified to the comptroller by the commissioner as the amount to  be
 credited  against city of New York tax warrant judgment debt pursuant to
 section one hundred  seventy-one-l  of  this  article,  (v)  and  except
 further  that  the  comptroller shall pay to a non-obligated spouse that
 amount of overpayment of tax imposed by article twenty-two of this chap-
 ter and the interest on such amount which has been credited pursuant  to
 section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
 hundred seventy-one-e, one hundred seventy-one-f or one  hundred  seven-
 ty-one-l  of  this  article and which is certified to the comptroller by
 the commissioner as the amount due such non-obligated spouse pursuant to
 paragraph six of subsection (b) of section six hundred fifty-one of this
 chapter; and (vi) the comptroller shall deduct a like amount  which  the
 comptroller  shall  pay  into  the treasury to the credit of the general
 fund from amounts subsequently  payable  to  the  department  of  social
 services,  the  state university of New York, the city university of New
 York, or the higher  education  services  corporation,  or  the  revenue
 arrearage  account  or  special  offset  fiduciary  account  pursuant to
 section ninety-one-a or ninety-one-c of the state finance  law,  as  the
 case  may be, whichever had been credited the amount originally withheld
 from such overpayment, and (vii)  with  respect  to  amounts  originally

 S. 1509--A                         205                        A. 2009--A
 
 withheld  from such overpayment pursuant to section one hundred seventy-
 one-l of this article and paid to the city of New York, the  comptroller
 shall collect a like amount from the city of New York.
   §  4.  Subdivision  1  of  section 171-a of the tax law, as amended by
 section 4 of part MM of chapter 59 of the laws of 2018,  is  amended  to
 read as follows:
   1.  All  taxes,  interest, penalties and fees collected or received by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A  (except  as  otherwise provided in section two hundred eighty-
 four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except as otherwise provided in section four hundred eighty-two  there-
 of),  TWENTY-D, twenty-one, twenty-two, twenty-four, twenty-six, twenty-
 eight (except as otherwise provided in section  eleven  hundred  two  or
 eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one
 (except  as  otherwise  provided  in section fourteen hundred twenty-one
 thereof), thirty-three and  thirty-three-A  of  this  chapter  shall  be
 deposited  daily  in  one  account  with such responsible banks, banking
 houses or trust companies as may be designated by  the  comptroller,  to
 the credit of the comptroller. Such an account may be established in one
 or  more  of such depositories. Such deposits shall be kept separate and
 apart from all other money in the possession  of  the  comptroller.  The
 comptroller  shall require adequate security from all such depositories.
 Of the total revenue collected or received under such articles  of  this
 chapter,  the  comptroller  shall retain in the comptroller's hands such
 amount as the commissioner may determine to be necessary for refunds  or
 reimbursements  under  such articles of this chapter out of which amount
 the comptroller shall pay any refunds or reimbursements to which taxpay-
 ers shall be entitled under the provisions  of  such  articles  of  this
 chapter. The commissioner and the comptroller shall maintain a system of
 accounts  showing  the amount of revenue collected or received from each
 of the taxes imposed by such articles. The comptroller, after  reserving
 the  amount  to  pay such refunds or reimbursements, shall, on or before
 the tenth day of each month, pay into the state treasury to  the  credit
 of  the general fund all revenue deposited under this section during the
 preceding calendar month and remaining to the  comptroller's  credit  on
 the  last  day  of such preceding month, (i) except that the comptroller
 shall pay to the state department of  social  services  that  amount  of
 overpayments  of  tax  imposed by article twenty-two of this chapter and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount  to  be  credited  against  past-due  support
 pursuant to subdivision six of section one hundred seventy-one-c of this
 article,  (ii) and except that the comptroller shall pay to the New York
 state higher education services corporation and the state university  of
 New  York or the city university of New York respectively that amount of
 overpayments of tax imposed by article twenty-two of  this  chapter  and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount to be credited against the amount of defaults
 in  repayment  of guaranteed student loans and state university loans or
 city university loans  pursuant  to  subdivision  five  of  section  one
 hundred  seventy-one-d and subdivision six of section one hundred seven-
 ty-one-e of this article, (iii) and except further that, notwithstanding
 any law, the comptroller shall credit to the revenue arrearage  account,
 pursuant  to  section ninety-one-a of the state finance law, that amount

 S. 1509--A                         206                        A. 2009--A
 
 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
 thereon, which is certified to the comptroller by  the  commissioner  as
 the  amount  to  be credited against a past-due legally enforceable debt
 owed to a state agency pursuant to paragraph (a) of subdivision  six  of
 section one hundred seventy-one-f of this article, provided, however, he
 shall  credit  to  the  special  offset  fiduciary  account, pursuant to
 section ninety-one-c of the state finance law, any such amount  credita-
 ble  as  a liability as set forth in paragraph (b) of subdivision six of
 section one hundred seventy-one-f  of  this  article,  (iv)  and  except
 further  that  the  comptroller  shall  pay to the city of New York that
 amount of overpayment of tax imposed by article  nine,  nine-A,  twenty-
 two,  thirty, thirty-A, thirty-B or thirty-three of this chapter and any
 interest thereon that is certified to the comptroller by the commission-
 er as the amount to be credited against city of  New  York  tax  warrant
 judgment  debt  pursuant  to  section  one hundred seventy-one-l of this
 article, (v) and except further that the  comptroller  shall  pay  to  a
 non-obligated  spouse that amount of overpayment of tax imposed by arti-
 cle twenty-two of this chapter and the interest on such amount which has
 been credited pursuant to section one hundred seventy-one-c, one hundred
 seventy-one-d, one hundred seventy-one-e, one hundred  seventy-one-f  or
 one  hundred seventy-one-l of this article and which is certified to the
 comptroller by the commissioner as the  amount  due  such  non-obligated
 spouse  pursuant  to  paragraph  six  of  subsection  (b) of section six
 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
 a like amount which the comptroller shall pay into the treasury  to  the
 credit  of  the  general  fund  from amounts subsequently payable to the
 department of social services, the state university  of  New  York,  the
 city  university  of  New  York, or the higher education services corpo-
 ration, or the revenue arrearage account  or  special  offset  fiduciary
 account  pursuant  to  section ninety-one-a or ninety-one-c of the state
 finance law, as the case may be, whichever had been credited the  amount
 originally  withheld  from  such  overpayment, and (vii) with respect to
 amounts originally withheld from such overpayment  pursuant  to  section
 one  hundred  seventy-one-l  of this article and paid to the city of New
 York, the comptroller shall collect a like amount from the city  of  New
 York.
   §  5. This act shall take effect July 1, 2019; provided, however, that
 the amendments to subdivision 1 of section 171-a of the tax law made  by
 section three of this act shall not affect the expiration of such subdi-
 vision and shall expire therewith, when upon such date the provisions of
 section four of this act shall take effect.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the applicable effective date of Parts A through XX of this act shall be
 as specifically set forth in the last section of such Parts.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2009--B
 
                           I N  A S S E M B L Y
 
                             January 18, 2019
                                ___________
 
 A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
   the Constitution -- read once and referred to the  Committee  on  Ways
   and  Means -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee -- again reported from  said
   committee  with amendments, ordered reprinted as amended and recommit-
   ted to said committee

 AN ACT to amend part U of chapter 61 of the laws of 2011,  amending  the
   real  property  tax law and other laws relating to establishing stand-
   ards for electronic tax administration, in relation to  making  perma-
   nent  provisions  relating to mandatory electronic filing of tax docu-
   ments; and repealing  certain  provisions  of  the  tax  law  and  the
   administrative code of the city of New York relating thereto (Part A);
   to  amend  the  economic  development law, in relation to the employee
   training incentive program (Part B); to amend  the  tax  law  and  the
   administrative  code of the city of New York, in relation to including
   in the apportionment fraction receipts constituting net global  intan-
   gible low-taxed income (Part C); to amend the tax law and the adminis-
   trative  code  of  the  city  of New York, in relation to the adjusted
   basis for property used to determine whether a manufacturer is a qual-
   ified New York manufacturer (Part D); to amend part MM of  chapter  59
   of the laws of 2014 amending the labor law and the tax law relating to
   the  creation  of the workers with disabilities tax credit program, in
   relation to extending the effectiveness thereof (Part E); to amend the
   tax law, in relation to the inclusion in a decedent's New  York  gross
   estate  any  qualified  terminable interest property for which a prior
   deduction was allowed and certain pre-death gifts (Part F);  to  amend
   the tax law, in relation to requiring marketplace providers to collect
   sales  tax  (Part G); to amend the tax law, in relation to eliminating
   the reduced tax rates under the sales and  use  tax  with  respect  to
   certain  gas and electric service; and to repeal certain provisions of
   the tax law and the administrative  code  of  the  city  of  New  York
   related  thereto  (Part  H);  to  amend  the real property tax law, in
   relation to the determination and  use  of  state  equalization  rates
   (Part I); intentionally omitted (Subpart A); to amend the real proper-
   ty  tax  law,  in  relation  to  authorizing agreements for assessment
   review services (Subpart B); to amend the real property  tax  law,  in
   relation  to  the  training  of assessors and county directors of real
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12574-03-9

 A. 2009--B                          2
 
   property tax services (Subpart C); to amend the real property tax law,
   in relation to providing certain notifications electronically (Subpart
   D); to amend the real property tax law, in relation to  the  valuation
   and  taxable  status  dates of special franchise property (Subpart E);
   and to amend the real property tax law, in relation to  the  reporting
   requirements  of  power plants (Subpart F) (Part J); to repeal section
   3-d of the general municipal law, relating to certification of compli-
   ance with tax levy limit (Part K); to amend the tax law,  in  relation
   to  creating an employer-provided child care credit (Part L); to amend
   the tax law, in relation to including gambling winnings  in  New  York
   source income and requiring withholding thereon (Part M); to amend the
   tax  law, in relation to the farm workforce retention credit (Part N);
   to amend the tax law, in relation to updating tax preparer  penalties;
   to  amend  part  N of chapter 61 of the laws of 2005, amending the tax
   law relating to  certain  transactions  and  related  information  and
   relating to the voluntary compliance initiative, in relation to elimi-
   nating the expiration thereof; and to repeal certain provisions of the
   tax law, relating to tax preparer penalties (Part O); to amend the tax
   law,  in  relation  to  extending the top personal income tax rate for
   five years (Part P); to amend the tax law and the administrative  code
   of  the  city of New York, in relation to extending for five years the
   limitations on itemized deductions for individuals with  incomes  over
   one  million  dollars  (Part  Q); to amend the tax law, in relation to
   extending the clean heating fuel credit for three years (Part  R);  to
   amend part U of chapter 61 of the laws of 2011 amending the real prop-
   erty  tax  law  and  other laws relating to establishing standards for
   electronic tax administration, in relation to the effectiveness there-
   of (Part S); to amend the cooperative corporations law and  the  rural
   electric  cooperative  law, in relation to eliminating certain license
   fees (Part T); to amend the tax law, in relation to a credit  for  the
   rehabilitation  of historic properties for state owned property leased
   to private entities (Part U); to amend the tax  law,  in  relation  to
   exempting from sales and use tax certain tangible personal property or
   services (Part V); to amend the mental hygiene law and the tax law, in
   relation  to  the  creation  and  administration  of  a tax credit for
   employment of eligible individuals in recovery from  a  substance  use
   disorder  (Part  W);  intentionally omitted (Part X); to amend the tax
   law, in relation to establishing a conditional tax on carried interest
   (Part Y); to amend the tax law and chapter 369 of  the  laws  of  2018
   amending  the tax law relating to unrelated business taxable income of
   a taxpayer, in relation to making technical corrections thereto  (Part
   Z);  intentionally omitted (Part AA); intentionally omitted (Part BB);
   intentionally omitted (Part CC);  to  amend  the  racing,  pari-mutuel
   wagering  and  breeding  law,  in relation to the office of the gaming
   inspector general; and to repeal title 9 of article 13 of the  racing,
   pari-mutuel wagering and breeding law relating to the gaming inspector
   general  (Subpart A); intentionally omitted (Subpart B); intentionally
   omitted (Subpart C); intentionally omitted (Subpart  D)(Part  DD);  to
   amend  the tax law, in relation to commissions paid to the operator of
   a video lottery facility; and providing  for  the  repeal  of  certain
   provisions  upon  expiration  thereof  (Part EE); to amend the racing,
   pari-mutuel wagering and breeding law, in relation to the deductibili-
   ty of promotional credits (Part FF); to amend the racing,  pari-mutuel
   wagering  and breeding law, in relation to the operations of off-track
   betting corporations (Part  GG);  to  amend  the  racing,  pari-mutuel
   wagering  and  breeding  law,  in  relation  to licenses for simulcast

 A. 2009--B                          3
 
   facilities, sums relating to track  simulcast,  simulcast  of  out-of-
   state  thoroughbred  races,  simulcasting of races run by out-of-state
   harness tracks and distributions of wagers; to amend  chapter  281  of
   the  laws of 1994 amending the racing, pari-mutuel wagering and breed-
   ing law and other laws relating to simulcasting and chapter 346 of the
   laws of 1990 amending the racing, pari-mutuel  wagering  and  breeding
   law  and  other  laws  relating  to simulcasting and the imposition of
   certain taxes, in relation to extending  certain  provisions  thereof;
   and  to  amend  the  racing, pari-mutuel wagering and breeding law, in
   relation to extending certain provisions  thereof  (Part  HH);  inten-
   tionally omitted (Part II); to amend part EE of chapter 59 of the laws
   of  2018,  amending  the racing, pari-mutuel wagering and breeding law
   relating to adjusting the franchise payment and establishing an  advi-
   sory  committee  to  review  the  structure, operations and funding of
   equine drug testing and research, in relation to the date of  delivery
   for recommendations; and to amend the racing, pari-mutuel wagering and
   breeding  law, in relation to equine lab testing provider restrictions
   removal (Part JJ);  intentionally  omitted  (Part  KK);  intentionally
   omitted  (Part  LL);  to amend the tax law, in relation to cooperative
   housing corporation information returns (Part MM); to  amend  the  tax
   law, in relation to making a technical correction to the enhanced real
   property  tax  circuit breaker credit (Part NN); intentionally omitted
   (Part OO); intentionally  omitted  (Part  PP);  intentionally  omitted
   (Part QQ); intentionally omitted (Part RR); to amend the real property
   tax law, in relation to clarifying certain notices on school tax bills
   (Part  SS);  to  amend  the  real property tax law and the tax law, in
   relation to making the STAR program more accessible to taxpayers (Part
   TT); to amend the tax law, in relation to imposing a supplemental  tax
   on  vapor products; and to amend the state finance law, in relation to
   adding revenues from the supplemental tax on  vapor  products  to  the
   health  care reform act resource fund (Part UU); intentionally omitted
   (Part VV); to amend the tax law, in relation to imposing a special tax
   on passenger car rentals outside of the metropolitan  commuter  trans-
   portation  district  (Part  WW);  intentionally  omitted (Part XX); to
   amend the racing, pari-mutuel wagering and breeding law,  in  relation
   to  the  New York Jockey Injury Compensation Fund, Inc.  (Part YY); to
   amend the tax law, in relation to the enforcement  of  delinquent  tax
   liabilities  by means of the suspension of licenses to operate a motor
   vehicle (Part ZZ); intentionally omitted (Part AAA); to amend the  tax
   law, in relation to imposing an additional transfer tax on conveyances
   for consideration of five million dollars or more (Part BBB); to amend
   the  real  property tax law, in relation to imposing an additional tax
   on certain non-primary residence class one and class two properties in
   a city with a population of one million or more (Part CCC);  to  amend
   the  tax  law, in relation to authorizing the county of Westchester to
   impose an additional rate of sales and compensating use  tax;  and  to
   amend  chapter  272 of the laws of 1991, amending the tax law relating
   to the method of disposition of sales and compensating use tax revenue
   in Westchester county and enacting  the  Westchester  county  spending
   limitation  act, in relation to extending the expiration thereof (Part
   DDD); and to amend the tax law, in relation to providing a tax  credit
   for  investments made in rural business growth funds; and to amend the
   state finance law, in relation to establishing the New  York  agricul-
   ture and rural jobs fund (Part EEE)

 A. 2009--B                          4
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act enacts into law major components of legislation
 which are necessary to implement the state fiscal plan for the 2019-2020
 state fiscal year. Each component is  wholly  contained  within  a  Part
 identified  as  Parts A through EEE. The effective date for each partic-
 ular provision contained within such Part  is  set  forth  in  the  last
 section  of  such Part.  Any provision in any section contained within a
 Part, including the effective date of the Part, which makes reference to
 a section "of this act", when used in connection  with  that  particular
 component,  shall  be  deemed  to  mean  and  refer to the corresponding
 section of the Part in which it is found. Section three of this act sets
 forth the general effective date of this act.
 
                                  PART A
 
   Section 1. Paragraph 10 of subsection (g) of section 658  of  the  tax
 law is REPEALED.
   §  2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin-
 istrative code of the city of New York is REPEALED.
   § 3. Paragraph 5 of subsection (u) of section 685 of the  tax  law  is
 REPEALED.
   § 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
 trative code of the city of New York is REPEALED.
   §  5. Section 23 of part U of chapter 61 of the laws of 2011, amending
 the real property tax law and other laws relating to establishing stand-
 ards for electronic tax administration, as amended by section 5 of  part
 G of chapter 60 of the laws of 2016, is amended to read as follows:
   § 23. This act shall take effect immediately; provided, however, that:
   (a)  the amendments to section 29 of the tax law made by section thir-
 teen of this act shall apply to tax documents filed or  required  to  be
 filed  on  or  after  the  sixtieth  day after which this act shall have
 become a law [and shall expire  and  be  deemed  repealed  December  31,
 2019],  provided  however that the amendments to paragraph 4 of subdivi-
 sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e)
 of section 29 of the tax law made by section thirteen of this  act  with
 regard  to individual taxpayers shall take effect September 15, 2011 but
 only if the commissioner of taxation and finance  has  reported  in  the
 report  required  by section seventeen-b of this act that the percentage
 of individual taxpayers electronically  filing  their  2010  income  tax
 returns is less than eighty-five percent; provided that the commissioner
 of  taxation  and  finance  shall  notify  the legislative bill drafting
 commission of the date of the issuance of such report in order that  the
 commission  may  maintain  an accurate and timely effective data base of
 the official text of the laws of the state of New York in furtherance of
 effectuating the provisions of section 44 of  the  legislative  law  and
 section 70-b of the public officers law;
   (b)  sections  fourteen,  fifteen,  sixteen  and seventeen of this act
 shall take effect September 15, 2011 but only  if  the  commissioner  of
 taxation  and  finance  has  reported  in the report required by section
 seventeen-b of this act that  the  percentage  of  individual  taxpayers
 electronically  filing their 2010 income tax returns is less than eight-
 y-five percent; AND
   (c) sections fourteen-a and fifteen-a of this act  shall  take  effect
 September  15,  2011 and expire and be deemed repealed December 31, 2012

 A. 2009--B                          5
 
 but shall take effect only if the commissioner of taxation  and  finance
 has  reported  in the report required by section seventeen-b of this act
 that the percentage of individual taxpayers electronically filing  their
 2010 income tax returns is eighty-five percent or greater[;
   (d)  sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this
 act shall take effect January 1, 2020 but only if  the  commissioner  of
 taxation  and  finance  has  reported  in the report required by section
 seventeen-b of this act that  the  percentage  of  individual  taxpayers
 electronically  filing their 2010 income tax returns is less than eight-
 y-five percent; and
   (e) sections twenty-one and twenty-one-a of this act shall expire  and
 be deemed repealed December 31, 2019].
   § 6. This act shall take effect immediately.
 
                                  PART B
 
   Section  1.  Subdivision  3 of section 441 of the economic development
 law, as amended by section 1 of part L of chapter  59  of  the  laws  of
 2017, is amended to read as follows:
   3.  "Eligible  training"  means  (a) training provided by THE BUSINESS
 ENTITY OR an approved provider that is:
   (i) to upgrade, retrain or improve the productivity of employees;
   (ii) provided to employees in connection with  a  significant  capital
 investment by a participating business entity;
   (iii) determined by the commissioner to satisfy a business need on the
 part of a participating business entity;
   (iv)  not designed to train or upgrade skills as required by a federal
 or state entity;
   (v) not training the completion of which may result in the awarding of
 a license or certificate required by law in order to perform a job func-
 tion; and
   (vi) not culturally focused training; or
   (b) an internship program in advanced technology [or], life  sciences,
 SOFTWARE  DEVELOPMENT  OR  CLEAN ENERGY approved by the commissioner and
 provided by THE BUSINESS ENTITY OR an approved  provider,  on  or  after
 August first, two thousand fifteen, to provide employment and experience
 opportunities for current students, recent graduates, and recent members
 of the armed forces.
   §  2.  Paragraph  (b)  of subdivision 1 of section 442 of the economic
 development law, as amended by section 2 of part L of chapter 59 of  the
 laws of 2017, is amended to read as follows:
   (b)  The business entity must demonstrate that it is CONDUCTING ELIGI-
 BLE TRAINING OR obtaining eligible training from an approved provider;
   § 3. Paragraph (a) of subdivision 2 of section  443  of  the  economic
 development  law,  as  added by section 1 of part O of chapter 59 of the
 laws of 2015, is amended to read as follows:
   (a) provide such documentation as  the  commissioner  may  require  in
 order for the commissioner to determine that the business entity intends
 to  CONDUCT  ELIGIBLE  TRAINING  OR  procure  eligible  training for its
 employees from an approved provider;
   § 4. This act shall take effect immediately.
 
                                  PART C
 
   Section 1. Section 210-A of the tax law is amended  by  adding  a  new
 subdivision 5-a to read as follows:

 A. 2009--B                          6
 
   5-A.  NET  GLOBAL  INTANGIBLE  LOW-TAXED INCOME.   NOTWITHSTANDING ANY
 OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED  INCOME
 SHALL  BE  INCLUDED  IN  THE  APPORTIONMENT FRACTION AS PROVIDED IN THIS
 SUBDIVISION.  RECEIPTS  CONSTITUTING  NET  GLOBAL  INTANGIBLE  LOW-TAXED
 INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRAC-
 TION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL
 BE  INCLUDED  IN  THE  DENOMINATOR  OF  THE  APPORTIONMENT FRACTION. FOR
 PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE  LOW-TAXED
 INCOME"  MEANS  THE  AMOUNT  REQUIRED  TO  BE INCLUDED IN THE TAXPAYER'S
 FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A  OF  THE
 INTERNAL  REVENUE  CODE  LESS  THE AMOUNT OF THE DEDUCTION ALLOWED UNDER
 CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE.
   § 2. Section 11-654.2 of the administrative code of the  city  of  New
 York is amended by adding a new subdivision 5-a to read as follows:
   5-A.  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL
 INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE  RECEIPTS  FRACTION
 AS  PROVIDED  IN  THIS  SUBDIVISION.    RECEIPTS CONSTITUTING NET GLOBAL
 INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN  THE  NUMERATOR  OF
 THE  RECEIPTS FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-
 TAXED INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS  FRAC-
 TION.  FOR PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE
 LOW-TAXED  INCOME"  MEANS  THE  AMOUNT  REQUIRED  TO  BE INCLUDED IN THE
 TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION  (A)  OF  SECTION
 951A  OF  THE  INTERNAL  REVENUE  CODE  LESS THE AMOUNT OF THE DEDUCTION
 ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE.
   § 3. Subparagraph (2) of paragraph (a) of subdivision (3)  of  section
 11-604  of the administrative code of the city of New York is amended by
 adding a new clause (E) to read as follows:
   (E) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PARAGRAPH, NET  GLOBAL
 INTANGIBLE  LOW-TAXED  INCOME SHALL BE INCLUDED IN THE RECEIPTS FRACTION
 AS PROVIDED IN THIS CLAUSE. RECEIPTS CONSTITUTING NET GLOBAL  INTANGIBLE
 LOW-TAXED  INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS
 FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE  LOW-TAXED  INCOME
 SHALL  BE  INCLUDED  IN  THE  DENOMINATOR  OF THE RECEIPTS FRACTION. FOR
 PURPOSES OF THIS CLAUSE,  THE  TERM  "NET  GLOBAL  INTANGIBLE  LOW-TAXED
 INCOME" MEANS THE AMOUNT THAT WOULD HAVE BEEN REQUIRED TO BE INCLUDED IN
 THE  TAXPAYER'S  FEDERAL  GROSS  INCOME  PURSUANT  TO  SUBSECTION (A) OF
 SECTION 951A OF THE  INTERNAL  REVENUE  CODE  LESS  THE  AMOUNT  OF  THE
 DEDUCTION  THAT  WOULD  HAVE  BEEN  ALLOWED  UNDER CLAUSE (I) OF SECTION
 250(A)(1)(B) OF SUCH CODE IF THE TAXPAYER HAD NOT MADE AN ELECTION UNDER
 SUBCHAPTER S OF CHAPTER ONE OF THE INTERNAL REVENUE CODE.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART D
 
   Section 1. Subparagraph (vi) of paragraph  (a)  of  subdivision  1  of
 section  210 of the tax law, as amended by section 11 of part T of chap-
 ter 59 of the laws of 2015, is amended to read as follows:
   (vi) for taxable years beginning on or after January first, two  thou-
 sand  fourteen,  the  amount prescribed by this paragraph for a taxpayer
 [which] THAT is a qualified New York manufacturer, shall be computed  at
 the  rate  of  zero  percent of the taxpayer's business income base. The
 term "manufacturer" shall mean a taxpayer [which] THAT during the  taxa-
 ble  year  is principally engaged in the production of goods by manufac-
 turing, processing, assembling, refining, mining,  extracting,  farming,

 A. 2009--B                          7
 
 agriculture, horticulture, floriculture, viticulture or commercial fish-
 ing.  However,  the  generation  and  distribution  of  electricity, the
 distribution of natural gas, and the production of steam associated with
 the  generation  of electricity shall not be qualifying activities for a
 manufacturer under  this  subparagraph.  Moreover,  in  the  case  of  a
 combined report, the combined group shall be considered a "manufacturer"
 for  purposes of this subparagraph only if the combined group during the
 taxable year is principally engaged in the activities set forth in  this
 paragraph,  or  any combination thereof. A taxpayer or, in the case of a
 combined report, a combined group  shall  be  "principally  engaged"  in
 activities  described above if, during the taxable year, more than fifty
 percent of the gross receipts of the taxpayer or combined group, respec-
 tively, are derived from receipts from the sale  of  goods  produced  by
 such  activities. In computing a combined group's gross receipts, inter-
 corporate receipts shall be eliminated. A "qualified New  York  manufac-
 turer"  is  a manufacturer [which] THAT has property in New York [which]
 THAT is described in clause (A) of subparagraph (i) of paragraph (b)  of
 subdivision  one of section two hundred ten-B of this article and either
 (I) the adjusted basis of such property for [federal  income]  NEW  YORK
 STATE  tax  purposes  at  the  close of the taxable year is at least one
 million dollars or (II) all of its real and personal property is located
 in New York. A taxpayer or, in the case of a combined report, a combined
 group, that does not satisfy the principally engaged test may be a qual-
 ified New York manufacturer  if  the  taxpayer  or  the  combined  group
 employs  during  the  taxable  year  at  least two thousand five hundred
 employees in manufacturing in New York and the taxpayer or the  combined
 group  has  property  in  the  state used in manufacturing, the adjusted
 basis of which for [federal income] NEW YORK STATE tax purposes  at  the
 close of the taxable year is at least one hundred million dollars.
   §  2.  Subparagraph 2 of paragraph (b) of subdivision 1 of section 210
 of the tax law, as amended by section 18 of part T of chapter 59 of  the
 laws of 2015, is amended to read as follows:
   (2)  For  purposes  of  subparagraph  one  of this paragraph, the term
 "manufacturer" shall mean a taxpayer [which]  THAT  during  the  taxable
 year is principally engaged in the production of goods by manufacturing,
 processing,  assembling, refining, mining, extracting, farming, agricul-
 ture, horticulture, floriculture,  viticulture  or  commercial  fishing.
 Moreover,  for  purposes  of  computing  the  capital base in a combined
 report, the combined group shall  be  considered  a  "manufacturer"  for
 purposes  of  this  subparagraph  only  if the combined group during the
 taxable year is principally engaged in the activities set forth in  this
 subparagraph,  or any combination thereof. A taxpayer or, in the case of
 a combined report, a combined group shall be  "principally  engaged"  in
 activities  described above if, during the taxable year, more than fifty
 percent of the gross receipts of the taxpayer or combined group, respec-
 tively, are derived from receipts from the sale  of  goods  produced  by
 such  activities. In computing a combined group's gross receipts, inter-
 corporate receipts shall be eliminated. A "qualified New  York  manufac-
 turer" is a manufacturer that has property in New York that is described
 in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of
 section  two  hundred  ten-B of this article and either (i) the adjusted
 basis of that property for [federal income] NEW YORK STATE tax  purposes
 at the close of the taxable year is at least one million dollars or (ii)
 all  of  its real and personal property is located in New York. In addi-
 tion, a "qualified New York  manufacturer"  means  a  taxpayer  that  is
 defined  as  a qualified emerging technology company under paragraph (c)

 A. 2009--B                          8
 
 of subdivision one of section thirty-one hundred  two-e  of  the  public
 authorities   law  regardless  of  the  ten  million  dollar  limitation
 expressed in subparagraph one of such paragraph. A taxpayer or,  in  the
 case  of  a combined report, a combined group, that does not satisfy the
 principally engaged test may be a qualified New York manufacturer if the
 taxpayer or the combined group employs during the taxable year at  least
 two thousand five hundred employees in manufacturing in New York and the
 taxpayer  or  the combined group has property in the state used in manu-
 facturing, the adjusted basis of which for  [federal  income]  NEW  YORK
 STATE  tax  purposes  at  the  close of the taxable year is at least one
 hundred million dollars.
   § 3. Clause (ii) of subparagraph 4 of paragraph (k) of  subdivision  1
 of section 11-654 of the administrative code of the city of New York, as
 added  by  section  1  of  part  D of chapter 60 of the laws of 2015, is
 amended to read as follows:
   (ii) A "qualified New York manufacturing corporation" is a manufactur-
 ing corporation that has property in the state [which] THAT is described
 in subparagraph five of this paragraph and either (A) the adjusted basis
 of such property for [federal income] NEW YORK STATE tax purposes at the
 close of the taxable year is at least one million dollars  or  (B)  more
 than  fifty  [percentum]  PERCENT  of  its real and personal property is
 located in the state.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART E
 
   Section 1. Section 5 of part MM of chapter 59  of  the  laws  of  2014
 amending  the  labor law and the tax law relating to the creation of the
 workers with disabilities tax credit  program  is  amended  to  read  as
 follows:
   §  5.  This  act shall take effect January 1, 2015, and shall apply to
 taxable years beginning on and after that date; provided, however,  that
 this act shall expire and be deemed repealed January 1, [2020] 2023.
   § 2. This act shall take effect immediately.
 
                                  PART F
 
   Section  1.  Paragraph  3  of subsection (a) of section 954 of the tax
 law, as amended by section 2 of part BB of chapter 59  of  the  laws  of
 2015, is amended to read as follows:
   (3)  Increased by the amount of any taxable gift under section 2503 of
 the internal revenue code  not  otherwise  included  in  the  decedent's
 federal  gross  estate,  made during the three year period ending on the
 decedent's date of death, but not including any gift made: (A) when  the
 decedent  was  not  a  resident  of  New York state; or (B) before April
 first, two thousand fourteen; or (C) BETWEEN JANUARY FIRST, TWO THOUSAND
 NINETEEN AND JANUARY FIFTEENTH, TWO THOUSAND NINETEEN; OR  (D)  that  is
 real  or  tangible  personal property having an actual situs outside New
 York state at the time the gift was made. Provided,  however  that  this
 paragraph  shall not apply to the estate of a [decendent] DECEDENT dying
 on or after January first, two thousand [nineteen] TWENTY-SIX.
   § 2. Subsection (a) of section 954 of the tax law is amended by adding
 a new paragraph 4 to read as follows:
   (4) INCREASED BY THE VALUE  OF  ANY  PROPERTY  NOT  OTHERWISE  ALREADY
 INCLUDED  IN  THE  DECEDENT'S FEDERAL GROSS ESTATE IN WHICH THE DECEDENT

 A. 2009--B                          9

 HAD A QUALIFYING INCOME INTEREST FOR LIFE IF A DEDUCTION WAS ALLOWED  ON
 THE RETURN OF THE TAX IMPOSED BY THIS ARTICLE WITH RESPECT TO THE TRANS-
 FER  OF  SUCH  PROPERTY  TO THE DECEDENT BY REASON OF THE APPLICATION OF
 PARAGRAPH  (7) OF SUBSECTION (B) OF SECTION 2056 OF THE INTERNAL REVENUE
 CODE, AS MADE APPLICABLE TO THE TAX IMPOSED BY THIS ARTICLE  BY  SECTION
 NINE  HUNDRED  NINETY-NINE-A  OF  THIS ARTICLE, WHETHER OR NOT A FEDERAL
 ESTATE TAX RETURN WAS REQUIRED TO BE FILED BY THE ESTATE OF  THE  TRANS-
 FERRING SPOUSE.
   § 3. Subsection (c) of section 955 of the tax law, as added by section
 4  of  part  X  of chapter 59 of the laws of 2014, is amended to read as
 follows:
   (c) Qualified  terminable  interest  property  election.--  Except  as
 otherwise provided in this subsection, the election referred to in para-
 graph (7) of subsection (b) of section 2056 of the internal revenue code
 shall  not  be  allowed under this article unless such election was made
 with respect to the federal estate tax return required to be filed under
 the provisions of the internal revenue code. If such election  was  made
 for the purposes of the federal estate tax, then such election must also
 be  made  by the executor on the return of the tax imposed by this arti-
 cle. Where no federal estate tax return is required  to  be  filed,  the
 executor  [may] MUST make the election referred to in such paragraph (7)
 with respect to the tax imposed by this article on the return of the tax
 imposed by this article. Any election made under this  subsection  shall
 be irrevocable.
   §  4.  This  act  shall take effect immediately; provided however that
 section one of this act shall apply to estates of decedents dying on  or
 after  January  16,  2019  and  sections two and three of this act shall
 apply to estates of decedents dying on or after April 1, 2019.
 
                                  PART G
 
   Section 1. Section 1101 of the tax law is  amended  by  adding  a  new
 subdivision (e) to read as follows:
   (E)  WHEN  USED  IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED
 UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND
 BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL
 MEAN:
   (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT  WITH
 A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY
 SUCH  MARKETPLACE  SELLER  OR  SELLERS.  A PERSON "FACILITATES A SALE OF
 TANGIBLE PERSONAL PROPERTY" FOR PURPOSES  OF  THIS  PARAGRAPH  WHEN  THE
 PERSON  MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES
 THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES  PLACE  OR  THE
 OFFER  OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTER-
 NET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFIL-
 IATE OF SUCH PERSON COLLECTS THE  RECEIPTS  PAID  BY  A  CUSTOMER  TO  A
 MARKETPLACE  SELLER  FOR  A  SALE  OF  TANGIBLE  PERSONAL  PROPERTY,  OR
 CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR  PURPOSES  OF
 THIS PARAGRAPH, A "SALE OF TANGIBLE PERSONAL PROPERTY" SHALL NOT INCLUDE
 THE  RENTAL  OF  A  PASSENGER CAR AS DESCRIBED IN SECTION ELEVEN HUNDRED
 SIXTY OF THIS CHAPTER BUT SHALL INCLUDE A LEASE DESCRIBED IN SUBDIVISION
 (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.  FOR  PURPOSES  OF
 THIS  PARAGRAPH,  PERSONS  ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP
 INTEREST OF MORE THAN FIVE  PERCENT,  WHETHER  DIRECT  OR  INDIRECT,  IN
 ANOTHER,  OR  WHERE  AN  OWNERSHIP  INTEREST  OF MORE THAN FIVE PERCENT,
 WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS  BY  ANOTHER

 A. 2009--B                         10
 
 PERSON  OR  BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH
 RESPECT TO EACH OTHER.
   (2)  MARKETPLACE  SELLER.  ANY  PERSON,  WHETHER OR NOT SUCH PERSON IS
 REQUIRED TO OBTAIN A  CERTIFICATE  OF  AUTHORITY  UNDER  SECTION  ELEVEN
 HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET-
 PLACE  PROVIDER  UNDER  WHICH  THE  MARKETPLACE PROVIDER WILL FACILITATE
 SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF
 PARAGRAPH ONE OF THIS SUBDIVISION.
   § 2. Subdivision 1 of section 1131 of  the  tax  law,  as  amended  by
 section  1  of  part  X of chapter 59 of the laws of 2018, is amended to
 read as follows:
   (1) "Persons required to collect tax" or "person required  to  collect
 any tax imposed by this article" shall include: every vendor of tangible
 personal  property  or  services;  every recipient of amusement charges;
 [and] every operator of a hotel; AND  EVERY  MARKETPLACE  PROVIDER  WITH
 RESPECT  TO  SALES  OF  TANGIBLE  PERSONAL  PROPERTY  IT  FACILITATES AS
 DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN  HUNDRED
 ONE OF THIS ARTICLE. Said terms shall also include any officer, director
 or employee of a corporation or of a dissolved corporation, any employee
 of  a partnership, any employee or manager of a limited liability compa-
 ny, or any employee of an individual proprietorship who as such officer,
 director, employee or manager is under a duty to  act  for  such  corpo-
 ration, partnership, limited liability company or individual proprietor-
 ship in complying with any requirement of this article, or has so acted;
 and  any member of a partnership or limited liability company. Provided,
 however, that any person who is a vendor solely by reason of clause  (D)
 or  (E)  of  subparagraph  (i)  of  paragraph  (8) of subdivision (b) of
 section eleven hundred one of  this  article  shall  not  be  a  "person
 required  to  collect any tax imposed by this article" until twenty days
 after the date by which such person is required to file a certificate of
 registration pursuant to section  eleven  hundred  thirty-four  of  this
 part.
   §  3.  Section 1132 of the tax law is amended by adding a new subdivi-
 sion (l) to read as follows:
   (L)(1) A MARKETPLACE PROVIDER WITH  RESPECT  TO  A  SALE  OF  TANGIBLE
 PERSONAL PROPERTY IT FACILITATES: (A) SHALL HAVE ALL THE OBLIGATIONS AND
 RIGHTS  OF  A  VENDOR UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS
 CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSUANT  THERETO,  INCLUDING,
 BUT  NOT  LIMITED  TO, THE DUTY TO OBTAIN A CERTIFICATE OF AUTHORITY, TO
 COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A  CERTIF-
 ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION
 OR  EXCLUSION  FROM  TAX,  THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY
 SUBDIVISION (E) OF THIS SECTION AND THE CREDIT  ALLOWED  BY  SUBDIVISION
 (F)  OF  SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE
 PROVISIONS OF SUCH SUBDIVISIONS; AND (B) SHALL  KEEP  SUCH  RECORDS  AND
 INFORMATION  AND  COOPERATE  WITH  THE COMMISSIONER TO ENSURE THE PROPER
 COLLECTION AND REMITTANCE OF TAX IMPOSED, COLLECTED OR  REQUIRED  TO  BE
 COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (2)  A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY TO
 COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
 SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED  FIVE  OF
 THIS  ARTICLE  AND  SHALL NOT INCLUDE THE RECEIPTS FROM SUCH SALE IN ITS
 TAXABLE RECEIPTS FOR PURPOSES OF SECTION ELEVEN  HUNDRED  THIRTY-SIX  OF
 THIS  PART  IF,  IN  REGARD TO SUCH SALE: (A) THE MARKETPLACE SELLER CAN
 SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM  WHOM
 SUCH  SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE

 A. 2009--B                         11
 
 OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING  THAT
 THE  MARKETPLACE  PROVIDER  IS  REGISTERED TO COLLECT SALES TAX AND WILL
 COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY  BY
 THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH
 SUCH  OTHER  INFORMATION  AS THE COMMISSIONER MAY PRESCRIBE; AND (B) ANY
 FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF  TAX
 IN  REGARD  TO  SUCH  SALE WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER
 PROVIDING THE MARKETPLACE  PROVIDER  WITH  INCORRECT  INFORMATION.  THIS
 PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH
 (I)  OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIF-
 ICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR  PURPOSES
 OF  SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH
 CERTIFICATE OF COLLECTION AND  THE  TIMING  OF  ITS  ACCEPTANCE  BY  THE
 MARKETPLACE  SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF TANGIBLE
 PERSONAL PROPERTY BY A MARKETPLACE SELLER  THAT  ARE  FACILITATED  BY  A
 MARKETPLACE  PROVIDER  WHO  IS  AFFILIATED  WITH SUCH MARKETPLACE SELLER
 WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN
 HUNDRED ONE OF THIS ARTICLE, THE  MARKETPLACE  SELLER  SHALL  BE  DEEMED
 LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR
 PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS
 PART.
   (3)  THE  COMMISSIONER  MAY,  IN  HIS OR HER DISCRETION: (A) DEVELOP A
 STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED  BY  A  MARKETPLACE
 PROVIDER,  IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT
 THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR  WHOM  THE  MARKET-
 PLACE  PROVIDER  FACILITATES  SALES  OF TANGIBLE PERSONAL PROPERTY, WITH
 RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY
 OCCURS IN THE STATE; AND (B) PROVIDE BY REGULATION OR OTHERWISE THAT THE
 INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT  BETWEEN
 THE  MARKETPLACE  PROVIDER  AND  MARKETPLACE  SELLER  WILL HAVE THE SAME
 EFFECT  AS  A  MARKETPLACE  SELLER'S  ACCEPTANCE  OF  A  CERTIFICATE  OF
 COLLECTION  FROM  SUCH  MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS
 SUBDIVISION.
   (4) SUBJECT TO THE APPROVAL OF THE COMMISSIONER, A MARKETPLACE  SELLER
 MAY  ENTER  INTO  AN AGREEMENT REGARDING THE FULFILLMENT OF THE REQUIRE-
 MENTS OF THIS ARTICLE INCLUDING AN AGREEMENT THAT ALLOWS THE MARKETPLACE
 SELLER TO COLLECT AND REMIT TAX FOR THE SALE OF TANGIBLE PERSONAL  PROP-
 ERTY MADE ON THE PLATFORM OF A MARKETPLACE PROVIDER.
   §  4.  Section 1133 of the tax law is amended by adding a new subdivi-
 sion (f) to read as follows:
   (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION
 FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT  THE
 MARKETPLACE  PROVIDER  CAN  SHOW  THAT THE ERROR WAS DUE TO INCORRECT OR
 INSUFFICIENT INFORMATION  GIVEN  TO  THE  MARKETPLACE  PROVIDER  BY  THE
 MARKETPLACE  SELLER. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY
 IF THE MARKETPLACE SELLER AND MARKETPLACE PROVIDER ARE AFFILIATED WITHIN
 THE MEANING OF PARAGRAPH  ONE  OF  SUBDIVISION  (E)  OF  SECTION  ELEVEN
 HUNDRED ONE OF THIS ARTICLE.
   § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
 amended  by  section  46 of part K of chapter 61 of the laws of 2011, is
 amended to read as follows:
   (4) The return of a vendor of tangible personal property  or  services
 shall  show  such vendor's receipts from sales and the number of gallons
 of any motor fuel or diesel motor fuel sold and also the aggregate value
 of tangible personal property and services and number of gallons of such
 fuels sold by the vendor, the use of which is subject to tax under  this

 A. 2009--B                         12
 
 article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
 provisions of section eleven hundred  thirty-seven  of  this  part.  The
 return  of  a recipient of amusement charges shall show all such charges
 and the amount of tax thereon, and the return of an operator required to
 collect  tax  on  rents shall show all rents received or charged and the
 amount of tax thereon.  THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE
 THE RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY  A
 MARKETPLACE  PROVIDER  IF,  IN  REGARD TO SUCH SALE: (A) THE MARKETPLACE
 SELLER HAS TIMELY RECEIVED IN GOOD FAITH A  PROPERLY  COMPLETED  CERTIF-
 ICATE  OF  COLLECTION  FROM  THE MARKETPLACE PROVIDER OR THE MARKETPLACE
 PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE  COMMISSIONER  IN  THE
 PUBLICLY-AVAILABLE  AGREEMENT  BETWEEN  THE MARKETPLACE PROVIDER AND THE
 MARKETPLACE SELLER AS DESCRIBED IN SUBDIVISION  ONE  OF  SECTION  ELEVEN
 HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE
 MARKETPLACE  SELLER  TO  THE  MARKETPLACE  PROVIDER  ABOUT SUCH TANGIBLE
 PERSONAL PROPERTY IS ACCURATE.
   § 6. Section 1142 of the tax law is amended by adding a  new  subdivi-
 sion 15 to read as follows:
   (15)  TO  PUBLISH  A  LIST  ON THE DEPARTMENT'S WEBSITE OF MARKETPLACE
 PROVIDERS WHOSE CERTIFICATES OF AUTHORITY  HAVE  BEEN  REVOKED  AND,  IF
 NECESSARY  TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHER-
 WISE THAT A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED  OF  THE
 DUTY  TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY FACILITATED
 BY A MARKETPLACE  PROVIDER  ONLY  IF,  IN  ADDITION  TO  THE  CONDITIONS
 PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED
 THIRTY-TWO  OF  THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON
 SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY.
   § 7. This act shall take effect immediately and shall apply  to  sales
 made on or after June 1, 2019.
 
                                  PART H
 
   Section  1.  Subparagraph  (A)  of  paragraph  1 of subdivision (b) of
 section 1105 of the tax law, as amended by section 9 of part S of  chap-
 ter 85 of the laws of 2002, is amended to read as follows:
   (A)  gas,  electricity,  refrigeration  and  steam, and gas, electric,
 refrigeration and steam service of whatever nature, INCLUDING THE TRANS-
 PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY,  EVEN  IF
 SOLD SEPARATELY;
   § 2. Section 1105-C of the tax law is REPEALED.
   §  3.  Subparagraph  (xi) of paragraph 4 of subdivision (a) of section
 1210 of the tax law is REPEALED.
   § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis-
 trative code of the city of New York is REPEALED.
   § 5. This act shall take effect June 1, 2019, and shall apply to sales
 made and services rendered on and after that date, whether or not  under
 a prior contract.
 
                                  PART I
 
   Section 1. Subdivision 3 of section 1204 of the real property tax law,
 as  added  by  chapter  115  of  the laws of 2018, is amended to read as
 follows:
   3. Where the tentative equalization rate is not within plus  or  minus
 five  [percentage points] PERCENT of the locally stated level of assess-
 ment, the assessor shall provide notice in writing to the local  govern-

 A. 2009--B                         13
 
 ing body of any affected town, city, village, county and school district
 of the difference between the locally stated level of assessment and the
 tentative  equalization rate.  Such notice shall be made within ten days
 of the receipt of the tentative equalization rate, or within ten days of
 the  filing  of  the  tentative assessment roll, whichever is later, and
 shall provide the difference in the indicated total full value estimates
 of the locally stated level of assessment and the tentative equalization
 rate for the taxable property within each affected town, city,  village,
 county and school district, where applicable.
   § 2. The real property tax law is amended by adding a new section 1211
 to read as follows:
   §  1211.  CONFIRMATION  BY COMMISSIONER OF THE LOCALLY STATED LEVEL OF
 ASSESSMENT. NOTWITHSTANDING THE  FOREGOING  PROVISIONS  OF  THIS  TITLE,
 BEFORE  THE  COMMISSIONER DETERMINES A TENTATIVE EQUALIZATION RATE FOR A
 CITY, TOWN OR VILLAGE, HE OR SHE  SHALL  EXAMINE  THE  ACCURACY  OF  THE
 LOCALLY STATED LEVEL OF ASSESSMENT APPEARING ON THE TENTATIVE ASSESSMENT
 ROLL.  IF  THE COMMISSIONER CONFIRMS THE LOCALLY STATED LEVEL OF ASSESS-
 MENT, THEN AS SOON THEREAFTER AS IS PRACTICABLE, HE OR SHE SHALL  ESTAB-
 LISH  AND  CERTIFY  SUCH LOCALLY STATED LEVEL OF ASSESSMENT AS THE FINAL
 EQUALIZATION RATE FOR SUCH CITY, TOWN OR VILLAGE IN THE MANNER  PROVIDED
 BY  SECTIONS TWELVE HUNDRED TEN AND TWELVE HUNDRED TWELVE OF THIS TITLE.
 THE PROVISIONS OF SECTIONS TWELVE HUNDRED FOUR, TWELVE HUNDRED  SIX  AND
 TWELVE HUNDRED EIGHT OF THIS TITLE SHALL NOT APPLY IN SUCH CASES, UNLESS
 THE  COMMISSIONER  FINDS THAT THE FINAL ASSESSMENT ROLL DIFFERS FROM THE
 TENTATIVE ASSESSMENT ROLL TO AN EXTENT THAT RENDERS THE  LOCALLY  STATED
 LEVEL OF ASSESSMENT INACCURATE, AND RESCINDS THE FINAL EQUALIZATION RATE
 ON THAT BASIS.
   §  3. Paragraph (d) of subdivision 1 of section 1314 of the real prop-
 erty tax law, as amended by chapter 158 of the laws of 2002, is  amended
 to read as follows:
   (d) (I) Such district superintendent shall also determine what propor-
 tion of any tax to be levied in such school district for school purposes
 during  the current school year shall be levied upon each part of a city
 or town included in such school district by dividing the sum of the full
 valuation of real property in such part of a city or town by  the  total
 of  all  such  full valuations of real property in such school district.
 PROVIDED, HOWEVER, THAT PRIOR TO THE LEVY OF TAXES, THE  GOVERNING  BODY
 OF THE SCHOOL DISTRICT MAY ADOPT A RESOLUTION DIRECTING SUCH PROPORTIONS
 TO  BE  BASED  UPON  THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH
 SUCH CITY OR TOWN OVER EITHER A THREE-YEAR  PERIOD,  CONSISTING  OF  THE
 CURRENT  SCHOOL YEAR AND THE TWO PRIOR SCHOOL YEARS, OR OVER A FIVE-YEAR
 PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE FOUR PRIOR  SCHOOL
 YEARS.  ONCE  SUCH  A  RESOLUTION  HAS BEEN ADOPTED, THE PROPORTIONS FOR
 ENSUING SCHOOL YEARS SHALL CONTINUE TO BE BASED UPON  THE  AVERAGE  FULL
 VALUATION  OF  REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER THE SELECTED
 PERIOD, UNLESS THE RESOLUTION PROVIDES OTHERWISE OR IS REPEALED.
   (II) Such proportions shall be expressed  in  the  nearest  exact  ten
 thousandths  and  the  school  authorities of such school district shall
 levy such a proportion of any tax to be raised in  the  school  district
 during the current school year upon each part of a city or town included
 in  such  school  district as shall have been determined by the district
 superintendent. A new proportion shall be  determined  for  each  school
 year  thereafter  by  the district superintendent in accordance with the
 provisions of this section by the use of the latest  state  equalization
 rates.  In  any such school district that is not within the jurisdiction
 of a district superintendent of schools, the duties which  would  other-

 A. 2009--B                         14
 
 wise be performed by the district superintendent under the provisions of
 this  section,  shall  be  performed  by  the school authorities of such
 district.
   § 4. This act shall take effect immediately.
 
                                  PART J
 
   Section  1.  This Part enacts into law major components of legislation
 relating to the improvement of the administration of real property taxa-
 tion in accordance with the real property tax law and other laws  relat-
 ing thereto. Each component is wholly contained within a Subpart identi-
 fied  as  Subparts  A  through F. The effective date for each particular
 provision contained within such Subpart is set forth in the last section
 of such Subpart.   Any provision  in  any  section  contained  within  a
 Subpart,  including  the  effective  date  of the Subpart, which makes a
 reference to a section "of this act", when used in connection with  that
 particular  component,  shall  be deemed to mean and refer to the corre-
 sponding section of the Subpart in which it is found.  Section three  of
 this Part sets forth the general effective date of this Part.
 
                                 SUBPART A
 
                           Intentionally Omitted
 
                                 SUBPART B
 
   Section  1.  Paragraph (b) of subdivision 1 of section 523 of the real
 property tax law, as amended by chapter 223 of  the  laws  of  1987,  is
 amended to read as follows:
   (b)  The  board  of  assessment  review shall consist of not less than
 three nor more than five members appointed by the  legislative  body  of
 the  local  government  or village OR AS PROVIDED BY SUBDIVISION FIVE OF
 SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF  THIS  CHAPTER,  IF  APPLICABLE.
 Members  shall  have a knowledge of property values in the local govern-
 ment or village. Neither the assessor nor any member of his or her staff
 may be appointed to the board of assessment review. A majority  of  such
 board  shall consist of members who are not officers or employees of the
 local government or village.
   § 2. Subdivision 1 of section 1537 of the real property  tax  law,  as
 added  by chapter 512 of the laws of 1993, is amended and a new subdivi-
 sion 5 is added to read as follows:
   1. (a) An assessing unit and a county shall have the  power  to  enter
 into,  amend,  cancel and terminate an agreement for appraisal services,
 exemption services,  [or]  assessment  services,  OR  ASSESSMENT  REVIEW
 SERVICES,  in  the  manner  provided  by this section. Such an agreement
 shall be considered an agreement for the provision of a "joint  service"
 for  purposes  of  article five-G of the general municipal law, notwith-
 standing the fact that the county would not have the  power  to  perform
 such services in the absence of such an agreement.
   (b)  Any  such  agreement shall be approved by both the assessing unit
 and the county, by a majority  vote  of  the  voting  strength  of  each
 governing body.
   (c)  In  the  case  of  an  assessing unit, no such agreement shall be
 submitted to the governing body for approval unless at least  forty-five
 days  prior  to such submission, the governing body shall have adopted a

 A. 2009--B                         15
 
 resolution, subject to a permissive referendum, authorizing the  assess-
 ing  unit  to  negotiate  such  an  agreement with the county; provided,
 however, that such prior authorization shall  not  be  required  for  an
 agreement  to  amend, cancel or terminate an existing agreement pursuant
 to this section.
   5. AN AGREEMENT BETWEEN AN ASSESSING UNIT AND A COUNTY FOR  ASSESSMENT
 REVIEW SERVICES SHALL PROVIDE FOR THE MEMBERS OF THE BOARD OF ASSESSMENT
 REVIEW  OF THE ASSESSING UNIT TO BE APPOINTED BY THE LEGISLATIVE BODY OF
 THE COUNTY UPON THE RECOMMENDATION OF THE COUNTY DIRECTOR  OF  THE  REAL
 PROPERTY  TAX  SERVICES. EACH MEMBER SO APPOINTED SHALL BE A RESIDENT OF
 THE COUNTY BUT NEED NOT BE A RESIDENT OF THE ASSESSING UNIT.  THE  BOARD
 OF  ASSESSMENT  REVIEW  AS  SO  CONSTITUTED  SHALL HAVE THE AUTHORITY TO
 RECEIVE, REVIEW AND RESOLVE PETITIONS FOR  ASSESSMENT  REVIEW  FILED  IN
 SUCH  ASSESSING  UNIT, AND FOR THE CORRECTIONS OF ERRORS THEREIN, TO THE
 FULL EXTENT SET FORTH IN ARTICLE FIVE OF THIS CHAPTER.
   § 3. Subdivision 1 of section 1408 of the real property  tax  law,  as
 amended  by  chapter  473  of  the  laws  of 1984, is amended to read as
 follows:
   1. At the time and place and during the hours specified in the  notice
 given  pursuant  to  section  fourteen  hundred six of this chapter, the
 board of review shall meet to hear complaints  relating  to  assessments
 brought  before  it. The board of trustees and assessors, or a committee
 of such board constituting at least a majority thereof and the assessors
 or a board of assessment review constituted  pursuant  to  section  five
 hundred twenty-three of this chapter, OR AS PROVIDED BY SUBDIVISION FIVE
 OF  SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF APPLICABLE,
 shall constitute the board of review.
   § 4. This act shall take effect immediately.
 
                                 SUBPART C
 
   Section 1. Subdivision 4 of section 318 of the real property tax  law,
 as  amended by chapter 527 of the laws of 1997 and as further amended by
 subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
 2010, is amended to read as follows:
   4.  Notwithstanding  the  provisions  of this subdivision or any other
 law, the travel and other actual and necessary expenses incurred  by  an
 appointed  or  elected assessor, or by A PERSON APPOINTED ASSESSOR FOR A
 FORTHCOMING TERM, OR BY an assessor-elect prior to the  commencement  of
 his  OR  HER  term,  in satisfactorily completing courses of training as
 required by this title or as approved  by  the  commissioner,  including
 continuing  education  courses  prescribed by the commissioner which are
 satisfactorily completed by any  elected  assessor,  shall  be  a  state
 charge upon audit by the comptroller. Travel and other actual and neces-
 sary expenses incurred by an acting assessor who has been exercising the
 powers  and  duties of the assessor for a period of at least six months,
 in attending training courses no earlier than twelve months prior to the
 date when courses of training and education are required, shall also  be
 a  state  charge  upon audit by the comptroller.  Candidates for certif-
 ication as eligible for the position of assessor, other  than  assessors
 or  assessors-elect, shall be charged for the cost of training materials
 and shall be responsible  for  all  other  costs  incurred  by  them  in
 connection with such training.  NOTWITHSTANDING THE FOREGOING PROVISIONS
 OF  THIS SUBDIVISION, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE
 COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY,  SO  THAT  ATTENDEES
 WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT

 A. 2009--B                         16
 
 WITHOUT  HAVING  THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS-
 SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER  ACTUAL  AND  NECESSARY
 EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE.
   § 2. Paragraph f of subdivision 3 of section 1530 of the real property
 tax  law,  as  amended by chapter 361 of the laws of 1986 and as further
 amended by subdivision (b) of section 1 of part W of chapter 56  of  the
 laws of 2010, is amended to read as follows:
   f.   Expenses  in  attending  training  courses.  Notwithstanding  the
 provisions of any other law, the travel and other actual  and  necessary
 expenses  incurred  by  a  director or a person appointed director for a
 forthcoming term in attending courses of training as  required  by  this
 subdivision  or  as approved by the commissioner shall be a state charge
 upon audit by the comptroller.  NOTWITHSTANDING THE FOREGOING PROVISIONS
 OF THIS PARAGRAPH, IF THE PROVIDER OF A TRAINING COURSE  HAS  ASKED  THE
 COMMISSIONER  TO  APPROVE  THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES
 WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT
 WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND  THE  COMMIS-
 SIONER  HAS  AGREED  TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY
 EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE.
   § 3. This act shall take effect immediately.
 
                                 SUBPART D
 
   Section 1. Section 104 of the real  property  tax  law,  as  added  by
 section  1  of  part  U of chapter 61 of the laws of 2011, is amended to
 read as follows:
   § 104. Electronic real property tax administration. 1. Notwithstanding
 any provision of law to the contrary, the commissioner is hereby author-
 ized to establish standards for electronic real  property  tax  adminis-
 tration (E-RPT). Such standards shall set forth the terms and conditions
 under which the various tasks associated with real property tax adminis-
 tration  may  be  executed  electronically, dispensing with the need for
 paper documents. Such tasks shall include ANY OR ALL OF THE FOLLOWING:
   (a) The filing of exemption applications;
   (b) The filing of petitions for administrative review of assessments;
   (c) The filing of petitions for judicial review of assessments;
   (d) The filing  of  applications  for  administrative  corrections  of
 errors;
   (e) The issuance of statements of taxes;
   (f)  The  payment of taxes, subject to the provisions of sections five
 and five-b of the general municipal law;
   (g) The provision of receipts for the payment of taxes;
   (h) The issuance  of  taxpayer  notices  required  by  law,  including
 sections  five hundred eight, five hundred ten, five hundred ten-a, five
 hundred eleven, five hundred twenty-five and  five  hundred  fifty-one-a
 through five hundred fifty-six-b of this chapter; and
   (i)  The  furnishing  of  notices  and certificates under this chapter
 relating to state equalization  rates,  residential  assessment  ratios,
 special  franchise  assessments, railroad ceilings, taxable state lands,
 advisory appraisals, and  the  certification  of  assessors  and  county
 directors  or  real  property tax services, SUBJECT TO THE PROVISIONS OF
 SUBDIVISION FIVE OF THIS SECTION.
   2. Such standards shall be developed  after  consultation  with  local
 government  officials, the office of court administration IN THE CASE OF
 STANDARDS RELATING TO PETITIONS FOR JUDICIAL REVIEW OF ASSESSMENTS,  and

 A. 2009--B                         17
 
 the office of the state comptroller IN THE CASE OF STANDARDS RELATING TO
 PAYMENTS OR TAXES AND THE ISSUANCE OF RECEIPTS THEREFOR.
   3.  (a)  Taxpayers shall not be required to accept notices, statements
 of taxes, receipts for the payment of taxes, or  other  documents  elec-
 tronically  unless  they  have  so  elected.  Taxpayers  who have not so
 elected shall be  sent  such  communications  in  the  manner  otherwise
 provided by law.
   (b)  [Assessors and other municipal officials shall not be required to
 accept and respond to communications  from  the  commissioner  electron-
 ically.
   (c)]  The  governing  board of any municipal corporation may, by local
 law, ordinance or resolution, determine that it is in the public  inter-
 est  for  such municipal corporation to provide electronic real property
 tax administration. Upon adoption of such local law, ordinance or resol-
 ution, such municipal corporation shall comply with standards set  forth
 by the commissioner.
   [(d)]  (C)  The  standards  prescribed by the commissioner pursuant to
 this section RELATING TO COMMUNICATIONS WITH TAXPAYERS shall provide for
 the  collection  of  electronic  contact  information,  such  as  e-mail
 addresses  and/or  social  network  usernames,  from  taxpayers who have
 elected to receive electronic  communications  in  accordance  with  the
 provisions of this section. Such information shall be exempt from public
 disclosure in accordance with section eighty-nine of the public officers
 law.
   4.  When  a document has been transmitted electronically in accordance
 with the provisions of this section and the  standards  adopted  by  the
 commissioner  hereunder,  it  shall  be deemed to satisfy the applicable
 legal requirements to the same extent as if it had been mailed  via  the
 United States postal service.
   5.  (A)  ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY, WHENEVER THE
 COMMISSIONER IS OBLIGED BY LAW TO MAIL A NOTICE OF THE DETERMINATION  OF
 A TENTATIVE STATE EQUALIZATION RATE, TENTATIVE SPECIAL FRANCHISE ASSESS-
 MENT,  TENTATIVE  ASSESSMENT CEILING OR OTHER TENTATIVE DETERMINATION OF
 THE COMMISSIONER THAT IS SUBJECT TO ADMINISTRATIVE REVIEW,  THE  COMMIS-
 SIONER  SHALL BE AUTHORIZED TO FURNISH THE REQUIRED NOTICE BY E-MAIL, OR
 BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, OR BOTH, AT  HIS
 OR  HER DISCRETION.   WHEN PROVIDING NOTICE OF A TENTATIVE DETERMINATION
 BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, THE COMMISSIONER
 ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO
 INFORM THEM THAT THE NOTICE OF TENTATIVE DETERMINATION HAS  BEEN  POSTED
 ON  THE  WEBSITE.  SUCH  NOTICE  OF TENTATIVE DETERMINATION SHALL NOT BE
 DEEMED COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT.  NOTWITHSTANDING  ANY
 PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER SHALL NOT BE REQUIRED
 TO FURNISH SUCH NOTICES BY POSTAL MAIL, EXCEPT AS PROVIDED BY PARAGRAPHS
 (D) AND (E) OF THIS SUBDIVISION.
   (B)  WHEN  PROVIDING  NOTICE OF A TENTATIVE DETERMINATION BY E-MAIL OR
 POSTING PURSUANT TO THIS SUBDIVISION, THE COMMISSIONER SHALL SPECIFY  AN
 E-MAIL  ADDRESS  TO  WHICH  COMPLAINTS REGARDING SUCH TENTATIVE DETERMI-
 NATION MAY BE SENT. A COMPLAINT THAT IS  SENT  TO  THE  COMMISSIONER  BY
 E-MAIL TO THE SPECIFIED E-MAIL ADDRESS BY THE DATE PRESCRIBED BY LAW FOR
 THE  MAILING OF SUCH COMPLAINTS SHALL BE DEEMED VALID TO THE SAME EXTENT
 AS IF IT HAD BEEN SENT BY POSTAL MAIL.
   (C) WHEN A FINAL DETERMINATION IS MADE IN SUCH A MATTER, NOTICE OF THE
 FINAL DETERMINATION  AND  ANY  CERTIFICATE  RELATING  THERETO  SHALL  BE
 FURNISHED  BY E-MAIL OR BY A WEBSITE POSTING, OR BOTH AT THE COMMISSION-
 ER'S DISCRETION, AND NEED NOT BE PROVIDED  BY  POSTAL  MAIL,  EXCEPT  AS

 A. 2009--B                         18
 
 PROVIDED  BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION.  WHEN PROVIDING
 NOTICE OF A FINAL DETERMINATION BY  WEBSITE  POSTING,  THE  COMMISSIONER
 ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO
 INFORM  THEM  THAT  THE NOTICE OF FINAL DETERMINATION HAS BEEN POSTED ON
 THE WEBSITE. SUCH NOTICE OF FINAL  DETERMINATION  SHALL  NOT  BE  DEEMED
 COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT.
   (D)  IF AN ASSESSOR HAS ADVISED THE COMMISSIONER IN WRITING THAT HE OR
 SHE PREFERS TO RECEIVE THE NOTICES  DESCRIBED  IN  THIS  SUBDIVISION  BY
 POSTAL MAIL, THE COMMISSIONER SHALL THEREAFTER SEND SUCH NOTICES TO THAT
 ASSESSOR BY POSTAL MAIL, AND NEED NOT SEND SUCH NOTICES TO THAT ASSESSOR
 BY  E-MAIL.  THE  COMMISSIONER SHALL PRESCRIBE A FORM THAT ASSESSORS MAY
 USE TO ADVISE THE COMMISSIONER OF THEIR PREFERENCE FOR POSTAL MAIL.
   (E) IF THE COMMISSIONER LEARNS THAT  AN  E-MAIL  ADDRESS  TO  WHICH  A
 NOTICE  HAS BEEN SENT PURSUANT TO THIS SUBDIVISION IS NOT VALID, AND THE
 COMMISSIONER CANNOT FIND A VALID E-MAIL  ADDRESS  FOR  THAT  PARTY,  THE
 COMMISSIONER SHALL RESEND THE NOTICE TO THE PARTY BY POSTAL MAIL. IF THE
 COMMISSIONER  DOES  NOT HAVE A VALID E-MAIL ADDRESS FOR THE PARTY AT THE
 TIME THE NOTICE IS INITIALLY REQUIRED TO BE SENT, THE COMMISSIONER SHALL
 SEND THE NOTICE TO THAT PARTY BY POSTAL MAIL.
   (F) ON OR  BEFORE  NOVEMBER  THIRTIETH,  TWO  THOUSAND  NINETEEN,  THE
 COMMISSIONER  SHALL  SEND A NOTICE BY POSTAL MAIL TO ASSESSORS, TO CHIEF
 EXECUTIVE OFFICERS OF ASSESSING UNITS, AND TO OWNERS  OF  SPECIAL  FRAN-
 CHISE  PROPERTY  AND RAILROAD PROPERTY, INFORMING THEM OF THE PROVISIONS
 OF THIS SECTION.  THE NOTICE TO BE SENT TO  ASSESSORS  SHALL  INCLUDE  A
 COPY  OF  THE FORM PRESCRIBED PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVI-
 SION.
   (G) AS USED IN THIS SUBDIVISION, THE TERM  "POSTAL  MAIL"  SHALL  MEAN
 MAIL  THAT IS PHYSICALLY DELIVERED TO THE ADDRESSEE BY THE UNITED STATES
 POSTAL SERVICE.
   § 2. This act shall take effect immediately.
 
                                 SUBPART E
 
   Section 1. Subdivision 4 of section 302 of the real property tax  law,
 as  amended  by  chapter  348 of the laws of 2007, is amended to read as
 follows:
   4. The taxable status of a special franchise shall  be  determined  on
 the  basis  of its value and its ownership as of the first day of [July]
 JANUARY of the year preceding the year in which the assessment  roll  on
 which  such  property  is  to  be assessed is completed and filed in the
 office of the city or town clerk, except that  taxable  status  of  such
 properties shall be determined on the basis of ownership as of the first
 day  of [July] JANUARY of the second year preceding the date required by
 law for the filing of the final assessment  roll  for  purposes  of  all
 village assessment rolls.
   §  2.  Subdivision  2  of section 606 of the real property tax law, as
 amended by chapter 743 of the laws of 2005 and  as  further  amended  by
 subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
 2010, is amended to read as follows:
   2. In any assessing unit which has completed a revaluation since nine-
 teen hundred fifty-three or which does not  contain  property  that  was
 assessed  in nineteen hundred fifty-three, the commissioner shall deter-
 mine the full value of such special franchise as of the [valuation  date
 of the assessing unit] TAXABLE STATUS DATE SPECIFIED BY SUBDIVISION FOUR
 OF  SECTION  THREE HUNDRED TWO OF THIS CHAPTER. Such full value shall be
 determined by the commissioner for  purposes  of  sections  six  hundred

 A. 2009--B                         19
 
 eight,  six  hundred  fourteen  and six hundred sixteen of this article.
 These full values shall be entered on the assessment roll at  the  level
 of  assessment,  which  shall  be  the  uniform  percentage of value, as
 required  by  section five hundred two of this chapter, appearing on the
 tentative assessment roll upon which the assessment is entered. Whenever
 a final state equalization rate, or, in the case of a special  assessing
 unit, a class equalization rate, is established that is different from a
 level of assessment applied pursuant to this paragraph, any public offi-
 cial  having  custody  of  that assessment roll is hereby authorized and
 directed to recompute these assessments  to  reflect  that  equalization
 rate,  provided  such  final  rate is established by the commissioner at
 least ten days prior to the date for levy of taxes against those assess-
 ments.
   § 3. This act shall take effect January 1, 2020.
 
                                 SUBPART F
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 575-a to read as follows:
   §  575-A. ELECTRIC GENERATING FACILITY ANNUAL REPORTS. 1. EVERY CORPO-
 RATION, COMPANY, ASSOCIATION, JOINT STOCK ASSOCIATION,  PARTNERSHIP  AND
 PERSON,  THEIR  LESSEES,  TRUSTEES  OR  RECEIVERS APPOINTED BY ANY COURT
 WHATSOEVER, OWNING, OPERATING OR MANAGING ANY ELECTRIC GENERATING FACIL-
 ITY IN THE STATE SHALL ANNUALLY FILE WITH  THE  COMMISSIONER,  BY  APRIL
 THIRTIETH, A REPORT SHOWING THE INVENTORY, REVENUE, AND EXPENSES ASSOCI-
 ATED  THEREWITH FOR THE MOST RECENT FISCAL YEAR. SUCH REPORT SHALL BE IN
 THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER.
   2. WHEN USED IN THIS SECTION,  "ELECTRIC  GENERATING  FACILITY"  SHALL
 MEAN ANY FACILITY THAT GENERATES ELECTRICITY FOR SALE, DIRECTLY OR INDI-
 RECTLY,  TO  THE  PUBLIC,  INCLUDING THE LAND UPON WHICH THE FACILITY IS
 LOCATED, ANY EQUIPMENT USED IN SUCH GENERATION,  AND  EQUIPMENT  LEADING
 FROM  THE FACILITY TO THE INTERCONNECTION WITH THE ELECTRIC TRANSMISSION
 SYSTEM, BUT SHALL NOT INCLUDE:
   (A) ANY EQUIPMENT IN THE ELECTRIC TRANSMISSION SYSTEM; AND
   (B) ANY ELECTRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A  RESIDEN-
 TIAL  CUSTOMER  OF  AN  ELECTRIC GENERATING FACILITY, INCLUDING THE LAND
 UPON WHICH THE EQUIPMENT IS LOCATED, WHEN LOCATED AND USED AT HIS OR HER
 RESIDENCE.
   3. EVERY ELECTRIC GENERATING  FACILITY  OWNER,  OPERATOR,  OR  MANAGER
 FAILING  TO MAKE THE REPORT REQUIRED BY THIS SECTION, OR FAILING TO MAKE
 ANY REPORT REQUIRED BY THE COMMISSIONER PURSUANT TO THIS SECTION  WITHIN
 THE  TIME  SPECIFIED BY IT, SHALL FORFEIT TO THE PEOPLE OF THE STATE THE
 SUM OF UP TO TEN THOUSAND DOLLARS FOR EVERY SUCH FAILURE AND  THE  ADDI-
 TIONAL  SUM OF UP TO ONE THOUSAND DOLLARS FOR EACH DAY THAT SUCH FAILURE
 CONTINUES.
   § 2. This act shall take effect January 1, 2020.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or subpart of this act shall be adjudged by any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or subpart thereof directly involved in the controversy  in  which  such
 judgment  shall  have  been  rendered.  It  is hereby declared to be the
 intent of the legislature that this act would have been enacted even  if
 such invalid provisions had not been included herein.

 A. 2009--B                         20
 
   §  3.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Subparts A through F of this Part shall
 be as specifically set forth in the last section of such Subparts.
 
                                  PART K

   Section  1.  Section  3-d  of  the  general municipal law, as added by
 section 2 of part E of chapter 59 of the laws of 2018, is REPEALED.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 12, 2018.
 
                                  PART L
 
   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:
   § 44. EMPLOYER-PROVIDED CHILD CARE CREDIT.  (A)  GENERAL.  A  TAXPAYER
 SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS
 CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN AMOUNT EQUAL TO
 THE  PORTION OF THE CREDIT THAT IS ALLOWED TO THE TAXPAYER UNDER SECTION
 45F OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE TO  (I)  QUALIFIED
 CHILD  CARE  EXPENDITURES  PAID  OR INCURRED WITH RESPECT TO A QUALIFIED
 CHILD CARE FACILITY WITH A SITUS IN THE STATE,  AND  TO  (II)  QUALIFIED
 CHILD  CARE  RESOURCE  AND  REFERRAL  EXPENDITURES PAID OR INCURRED WITH
 RESPECT TO THE TAXPAYER'S EMPLOYEES WORKING IN  THE  STATE.  THE  CREDIT
 ALLOWABLE  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT EXCEED
 ONE HUNDRED FIFTY THOUSAND DOLLARS. IF THE ENTITY OPERATING  THE  QUALI-
 FIED  CHILD  CARE FACILITY IS A PARTNERSHIP OR A NEW YORK S CORPORATION,
 THEN SUCH CAP SHALL BE APPLIED AT THE ENTITY  LEVEL,  SO  THE  AGGREGATE
 CREDIT  ALLOWED  TO ALL THE PARTNERS OR SHAREHOLDERS OF SUCH ENTITY IN A
 TAXABLE YEAR DOES NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS.
   (B) CREDIT RECAPTURE. IF THERE IS A CESSATION OF OPERATION  OR  CHANGE
 IN  OWNERSHIP,  AS  DEFINED  BY SECTION 45F OF THE INTERNAL REVENUE CODE
 RELATING TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN  THE  STATE,
 THE  TAXPAYER  SHALL ADD BACK THE APPLICABLE RECAPTURE PERCENTAGE OF THE
 CREDIT ALLOWED UNDER THIS  SECTION  IN  ACCORDANCE  WITH  THE  RECAPTURE
 PROVISIONS  OF  SECTION 45F OF THE INTERNAL REVENUE CODE, BUT THE RECAP-
 TURE AMOUNT SHALL BE LIMITED TO THE CREDIT ALLOWED UNDER THIS SECTION.
   (C) REPORTING REQUIREMENTS. A TAXPAYER THAT HAS CLAIMED A CREDIT UNDER
 THIS SECTION SHALL NOTIFY THE COMMISSIONER OF ANY  CESSATION  OF  OPERA-
 TION, CHANGE IN OWNERSHIP, OR AGREEMENT TO ASSUME RECAPTURE LIABILITY AS
 SUCH  TERMS  ARE DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE, IN
 THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER.
   (D) DEFINITIONS. THE TERMS "QUALIFIED CHILD CARE EXPENDITURES", "QUAL-
 IFIED CHILD CARE FACILITY", "QUALIFIED CHILD CARE RESOURCE AND  REFERRAL
 EXPENDITURE",  "CESSATION  OF  OPERATION",  "CHANGE  OF  OWNERSHIP", AND
 "APPLICABLE RECAPTURE PERCENTAGE" SHALL HAVE THE  SAME  MEANINGS  AS  IN
 SECTION 45F OF THE INTERNAL REVENUE CODE.
   (E)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53;
   (2) ARTICLE 22: SECTION 606(I), SUBSECTIONS (I) AND (JJJ);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 53 to read as follows:
   53.  EMPLOYER-PROVIDED  CHILD  CARE CREDIT. (A) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN

 A. 2009--B                         21
 
 SECTION  FORTY-FOUR  OF  THIS  CHAPTER,  AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT  OF  THE
 CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
 TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX  BASED  ON  THE
 FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN
 SUCH TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
 EIGHTY-SIX  OF  THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE PROVISIONS OF
 SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (C)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
 follows:
 (XLIV) EMPLOYER-PROVIDED CHILD       AMOUNT OF CREDIT UNDER SUBDIVISION
 CARE CREDIT (JJJ)                    FIFTY-THREE OF SECTION TWO HUNDRED
                                      TEN-B
   § 4. Section 606 of the tax law is amended by adding a new  subsection
 (jjj) to read as follows:
   (JJJ)  EMPLOYER-PROVIDED CHILD CARE CREDIT. (1) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
 SECTION  FORTY-FOUR  OF  THIS  CHAPTER,  AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
 OR  REFUNDED  IN  ACCORDANCE  WITH THE PROVISIONS OF SECTION SIX HUNDRED
 EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL  BE
 PAID THEREON.
   (3)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   § 5. Section 1511 of the tax law is amended by adding a  new  subdivi-
 sion (dd) to read as follows:
   (DD)  EMPLOYER-PROVIDED  CHILD CARE CREDIT. (1) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
 SECTION  FORTY-FOUR  OF  THIS  CHAPTER,  AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 SHALL  NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM
 FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF  SECTION  FIFTEEN  HUNDRED
 TWO  OR  SECTION  FIFTEEN  HUNDRED  TWO-A  OF THIS ARTICLE, WHICHEVER IS
 APPLICABLE. HOWEVER, IF THE AMOUNT OF  THE  CREDIT  ALLOWED  UNDER  THIS
 SUBDIVISION  FOR  ANY  TAXABLE  YEAR  REDUCES THE TAXPAYER'S TAX TO SUCH
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED  AS  AN
 OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
 PROVISIONS  OF  SECTION  ONE  THOUSAND  EIGHTY-SIX  OF   THIS   CHAPTER.
 PROVIDED,  HOWEVER,  THE  PROVISIONS  OF  SUBSECTION (C) OF ONE THOUSAND
 EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE  PAID
 THEREON.
   (3)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER

 A. 2009--B                         22
 
   § 6. This act shall take effect immediately and apply to years  begin-
 ning on or after January 1, 2020.
 
                                  PART M
 
   Section 1. Paragraph 1 of subsection (b) of section 631 of the tax law
 is amended by adding a new subparagraph (D-1) to read as follows:
   (D-1) GAMBLING WINNINGS IN EXCESS OF FIVE THOUSAND DOLLARS FROM WAGER-
 ING TRANSACTIONS WITHIN THE STATE; OR
   §  2.  Paragraph  2 of subsection (b) of section 671 of the tax law is
 amended by adding a new subparagraph (E) to read as follows:
   (E) ANY GAMBLING WINNINGS FROM  A  WAGERING  TRANSACTION  WITHIN  THIS
 STATE,  IF  THE PROCEEDS FROM THE WAGER ARE SUBJECT TO WITHHOLDING UNDER
 SECTION THREE THOUSAND FOUR HUNDRED TWO OF THE INTERNAL REVENUE CODE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019; provided, however that  the
 amendments  to  subsection  (b)  of  section  671 of the tax law made by
 section two of  this  act  shall  not  affect  the  expiration  of  such
 subsection and shall be deemed to expire therewith.
 
                                  PART N
 
   Section  1.  Subdivision (c) of section 42 of the tax law, as added by
 section 1 of part RR of chapter 60 of the laws of 2016,  is  amended  to
 read as follows:
   (c)  For  purposes  of  this [subdivision] SECTION, the term "eligible
 farmer" means a taxpayer whose federal  gross  income  from  farming  AS
 DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER for
 the  taxable year is at least two-thirds of excess federal gross income.
 Excess federal gross income means the amount  of  federal  gross  income
 from  all  sources  for  the  taxable  year in excess of thirty thousand
 dollars. For [the] purposes of this [subdivision] SECTION, payments from
 the state's farmland protection program, administered by the  department
 of  agriculture  and  markets, shall be included as federal gross income
 from farming for otherwise eligible farmers.
   § 2. Section 42 of the tax law is amended by adding a new  subdivision
 (d-1) to read as follows:
   (D-1) SPECIAL RULES. IF MORE THAN FIFTY PERCENT OF SUCH ELIGIBLE FARM-
 ER'S  FEDERAL  GROSS INCOME FROM FARMING IS FROM THE SALE OF WINE FROM A
 LICENSED FARM WINERY AS PROVIDED FOR IN ARTICLE  SIX  OF  THE  ALCOHOLIC
 BEVERAGE  CONTROL  LAW,  OR  FROM THE SALE OF CIDER FROM A LICENSED FARM
 CIDERY AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC  BEVER-
 AGE  CONTROL LAW, THEN AN ELIGIBLE FARM EMPLOYEE OF SUCH ELIGIBLE FARMER
 SHALL BE INCLUDED FOR PURPOSES  OF  CALCULATING  THE  AMOUNT  OF  CREDIT
 ALLOWED  UNDER  THIS  SECTION  ONLY  IF  SUCH  ELIGIBLE FARM EMPLOYEE IS
 EMPLOYED BY SUCH ELIGIBLE FARMER ON QUALIFIED AGRICULTURAL  PROPERTY  AS
 DEFINED  IN  PARAGRAPH FOUR OF SUBSECTION (N) OF SECTION SIX HUNDRED SIX
 OF THIS CHAPTER.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.
 
                                  PART O
 
   Section 1. Section 12 of part N of chapter 61 of  the  laws  of  2005,
 amending the tax law relating to certain transactions and related infor-
 mation  and  relating to the voluntary compliance initiative, as amended

 A. 2009--B                         23
 
 by section 1 of part M of chapter 60 of the laws of 2016, is amended  to
 read as follows:
   §  12. This act shall take effect immediately; provided, however, that
 (i) section one of this act shall apply  to  all  disclosure  statements
 described  in  paragraph  1  of subdivision (a) of section 25 of the tax
 law, as added by section one of this act, that were required to be filed
 with the internal revenue service at any time with  respect  to  "listed
 transactions"  as  described in such paragraph 1, and shall apply to all
 disclosure statements described in paragraph 1  of  subdivision  (a)  of
 section  25  of  the  tax law, as added by section one of this act, that
 were required to be filed with the internal revenue service with respect
 to "reportable transactions" as described in  such  paragraph  1,  other
 than  "listed transactions", in which a taxpayer participated during any
 taxable year for which the statute of limitations for assessment has not
 expired as of the date this act shall take effect, and  shall  apply  to
 returns or statements described in such paragraph 1 required to be filed
 by  taxpayers  (or  persons  as  described  in  such paragraph) with the
 commissioner of taxation and finance on or after the sixtieth day  after
 this act shall have become a law; and
   (ii)  sections  two  through  four  and seven through nine of this act
 shall apply to any tax liability for which the statute of limitations on
 assessment has not expired as of the date this act shall  take  effect[;
 and
   (iii)  provided,  further,  that  the  provisions  of this act, except
 section five of this act, shall expire and be deemed  repealed  July  1,
 2019;  provided,  that,  such expiration and repeal shall not affect any
 requirement imposed pursuant to this act].
   § 2. Subsection (aa) of section 685 of the tax law is REPEALED  and  a
 new subsection (aa) is added to read as follows:
   (AA)  TAX  PREPARER  PENALTY.--  (1)  IF A TAX RETURN PREPARER TAKES A
 POSITION ON ANY INCOME TAX RETURN  OR  CREDIT  CLAIM  FORM  THAT  EITHER
 UNDERSTATES  THE  TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND, AND
 THE PREPARER KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT  SAID  POSITION
 WAS  NOT  PROPER,  AND SUCH POSITION WAS NOT ADEQUATELY DISCLOSED ON THE
 RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPAR-
 ER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS.
   (2) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN
 OR CREDIT CLAIM FORM  THAT  EITHER  UNDERSTATES  THE  TAX  LIABILITY  OR
 INCREASES  THE  CLAIM  FOR  A  REFUND  AND THE UNDERSTATEMENT OF THE TAX
 LIABILITY OR THE INCREASED CLAIM FOR REFUND IS  DUE  TO  THE  PREPARER'S
 RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH
 PREPARER  SHALL  PAY A PENALTY OF BETWEEN FIVE HUNDRED AND FIVE THOUSAND
 DOLLARS. THE AMOUNT OF THE PENALTY PAYABLE BY ANY PERSON  BY  REASON  OF
 THIS  PARAGRAPH  SHALL  BE  REDUCED BY THE AMOUNT OF THE PENALTY PAID BY
 SUCH PERSON BY REASON OF PARAGRAPH ONE OF THIS SUBSECTION.
   (3) FOR PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT  OF  TAX
 LIABILITY"  MEANS  ANY  UNDERSTATEMENT  OF  THE  NET AMOUNT PAYABLE WITH
 RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR  ANY  OVERSTATEMENT  OF
 THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX.
   (4)  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARED"
 SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE  OF  SUBSECTION
 (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE.
   (5)  THIS  SUBSECTION  SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION
 (R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER  WITH  RESPECT
 TO SUCH UNDERSTATEMENT.

 A. 2009--B                         24
 
   § 3. Subsection (u) of section 685 of the tax law is amended by adding
 three new paragraphs (1), (2), and (6) to read as follows:
   (1)  FAILURE  TO  SIGN  RETURN  OR  CLAIM  FOR REFUND. IF A TAX RETURN
 PREPARER WHO IS REQUIRED PURSUANT TO PARAGRAPH ONE OF SUBSECTION (G)  OF
 SECTION  SIX  HUNDRED  FIFTY-EIGHT  OF  THIS ARTICLE TO SIGN A RETURN OR
 CLAIM FOR REFUND FAILS TO COMPLY WITH SUCH REQUIREMENT WITH  RESPECT  TO
 SUCH  RETURN  OR  CLAIM  FOR  REFUND,  THE  TAX RETURN PREPARER SHALL BE
 SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH  FAILURE
 TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE
 AND  NOT  DUE TO WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS
 PARAGRAPH ON ANY TAX RETURN  PREPARER  WITH  RESPECT  TO  RETURNS  FILED
 DURING  ANY CALENDAR YEAR BY THE TAX RETURN PREPARER MUST NOT EXCEED TEN
 THOUSAND DOLLARS. PROVIDED, HOWEVER, THAT IF A TAX RETURN  PREPARER  HAS
 BEEN  PENALIZED  UNDER  THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND
 AGAIN FAILS TO SIGN HIS OR HER NAME ON ANY RETURN THAT REQUIRES THE  TAX
 RETURN  PREPARER'S SIGNATURE DURING A SUBSEQUENT CALENDAR YEAR, THEN THE
 PENALTY UNDER THIS PARAGRAPH FOR  EACH  FAILURE  WILL  BE  FIVE  HUNDRED
 DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF
 THE  PENALTY  UNDER PARAGRAPH THREE OF SUBSECTION (G) OF SECTION THIRTY-
 TWO OF THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER  WITH  RESPECT
 TO SUCH RETURN OR CLAIM FOR REFUND.
   (2)  FAILURE  TO  FURNISH IDENTIFYING NUMBER. IF A TAX RETURN PREPARER
 FAILS TO INCLUDE ANY IDENTIFYING NUMBER REQUIRED TO BE INCLUDED  ON  ANY
 RETURN  OR  CLAIM FOR REFUND PURSUANT TO PARAGRAPH TWO OF SUBSECTION (G)
 OF SECTION SIX HUNDRED FIFTY-EIGHT  OF  THIS  ARTICLE,  THE  TAX  RETURN
 PREPARER  SHALL  BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS FOR EACH
 SUCH FAILURE, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO  REASONABLE
 CAUSE  AND  NOT WILLFUL NEGLECT.  THE MAXIMUM PENALTY IMPOSED UNDER THIS
 PARAGRAPH ON ANY TAX RETURN  PREPARER  WITH  RESPECT  TO  RETURNS  FILED
 DURING  ANY  CALENDAR  YEAR  MUST  NOT  EXCEED TWO THOUSAND FIVE HUNDRED
 DOLLARS; PROVIDED, HOWEVER, THAT IF  A  TAX  RETURN  PREPARER  HAS  BEEN
 PENALIZED  UNDER  THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN
 FAILS TO INCLUDE THE IDENTIFYING NUMBER ON ONE OR MORE RETURNS DURING  A
 SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH
 FAILURE WILL BE TWO HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY.
 THIS  PARAGRAPH  SHALL  NOT APPLY IF THE PENALTY UNDER PARAGRAPH FOUR OF
 SUBSECTION (G) OF SECTION THIRTY-TWO OF THIS CHAPTER IS IMPOSED  ON  THE
 TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND.
   (6)  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARER"
 SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE  OF  SUBSECTION
 (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE.
   §  4.  This act shall take effect immediately; provided, however, that
 the amendments to subsection (u) of section 685 of the tax law  made  by
 section three of this act shall apply to tax documents filed or required
 to be filed for taxable years beginning on or after January 1, 2019.
 
                                  PART P

   Section 1. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subpar-
 agraph  (B)  of  paragraph 1 of subsection (a) of section 601 of the tax
 law, as added by section 1 of part R of chapter 59 of the laws of  2017,
 are amended to read as follows:
   (iii) For taxable years beginning in two thousand twenty the following
 rates shall apply:

 A. 2009--B                         25
 
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
                                       $27,900
 Over $43,000 but not over $161,550    $2,093 plus 6.09% of excess over
                                       $43,000
 Over $161,550 but not over $323,200   $9,313 plus 6.41% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $19,674 plus 6.85% of excess
 $2,155,350                            over $323,200
 OVER $2,155,350 BUT NOT OVER          $145,177 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $2,155,350
 OVER $5,000,000 BUT NOT OVER          $396,075 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $862,075 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,700,075 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
                                       $27,900
 Over $43,000 but not over $161,550    $2,093 plus 5.97% of excess over
                                       $43,000
 Over $161,550 but not over $323,200   $9,170 plus 6.33% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $19,403 plus 6.85% of excess
 $2,155,350                            over $323,200
 OVER $2,155,350 BUT NOT OVER          $144,905 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $2,155,350
 OVER $5,000,000 BUT NOT OVER          $395,803 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $861,803 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,699,803 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (v) For taxable years beginning in two thousand twenty-two the follow-
 ing rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,202 plus 5.85% of excess over

 A. 2009--B                         26
 
                                       $27,900
 Over $161,550 but not over $323,200   $9,021 plus 6.25% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $19,124 plus 6.85% of excess over
 $2,155,350                            $323,200
 OVER $2,155,350 BUT NOT OVER          $144,626 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $2,155,350
 OVER $5,000,000 BUT NOT OVER          $395,524 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $861,524 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,699,524 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (vi)  For  taxable  years  beginning  in two thousand twenty-three the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,202 plus 5.73% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $8,860 plus 6.17% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $18,834 plus 6.85% of
 $2,155,350                            excess over $323,200
 OVER $2,155,350 BUT NOT OVER          $144,336 PLUS 8.82% OF EXCESS
 $5,000,000                            OVER $2,155,350
 OVER $5,000,000 BUT NOT OVER          $395,234 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $861,234 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,699,234 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (vii) For taxable years beginning  in  two  thousand  twenty-four  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,202 plus 5.61% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $8,700 plus 6.09% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $18,544 plus 6.85% of
 $2,155,350                            excess over $323,200
 OVER $2,155,350 BUT NOT OVER          $144,047 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $2,155,350
 OVER $5,000,000 BUT NOT OVER          $394,945 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $860,945 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,698,945 PLUS 10.32% OF EXCESS

 A. 2009--B                         27
 
                                       OVER $100,000,000
   (viii)  For taxable years beginning after two thousand twenty-four the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,202 plus 5.5% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $8,553 plus 6.00% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $18,252 plus 6.85% of
 $2,155,350                            excess over $323,200
 OVER $2,155,350 BUT NOT OVER          $143,754 PLUS 8.82% OF EXCESS
 $5,000,000                            OVER $2,155,350
 OVER $5,000,000 BUT NOT OVER          $394,652 PLUS 9.32% OF EXCESS
 $10,000,000                           OVER $5,000,000
 OVER $10,000,000 BUT NOT              $860,652 PLUS 9.82% OF EXCESS
 OVER $100,000,000                     OVER $10,000,000
 OVER $100,000,000                     $9,698,652 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   § 2. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of  subparagraph
 (B)  of  paragraph 1 of subsection (b) of section 601 of the tax law, as
 added by section 2 of part R of chapter 59 of  the  laws  of  2017,  are
 amended to read as follows:
   (iii) For taxable years beginning in two thousand twenty the following
 rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $32,200     $901 plus 5.9% of excess over
                                       $20,900
 Over $32,200 but not over $107,650    $1,568 plus 6.09% of excess over
                                       $32,200
 Over $107,650 but not over $269,300   $6,162 plus 6.41% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $16,524 plus 6.85% of
 $1,616,450                            excess over $269,300
 OVER $1,616,450 BUT NOT OVER          $108,804 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,616,450
 OVER $5,000,000 BUT NOT OVER          $407,233 PLUS 9.32% OF EXCESS
 $10,000,000                           OVER $5,000,000
 OVER $10,000,000 BUT NOT              $873,233 PLUS 9.82% OF EXCESS
 OVER $100,000,000                     OVER $10,000,000
 OVER $100,000,000                     $9,711,233 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over

 A. 2009--B                         28
 
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $32,200     $901 plus 5.9% of excess over
                                       $20,900
 Over $32,200 but not over $107,650    $1,568 plus 5.97% of excess over
                                       $32,200
 Over $107,650 but not over $269,300   $6,072 plus 6.33% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $16,304 plus 6.85% of
 $1,616,450                            excess over $269,300
 OVER $1,616,450 BUT NOT OVER          $108,584 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,616,450
 OVER $5,000,000 BUT NOT OVER          $407,013 PLUS 9.32% OF EXCESS
 $10,000,000                           OVER $5,000,000
 OVER $10,000,000 BUT NOT OVER         $873,013 PLUS 9.82% OF EXCESS
 $100,000,000                          OVER $10,000,000
 OVER $100,000,000                     $9,711,013 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (v) For taxable years beginning in two thousand twenty-two the follow-
 ing rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $107,650    $901 plus 5.85% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,976 plus 6.25% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $16,079 plus 6.85% of excess
 $1,616,450                            over $269,300
 OVER $1,616,450 BUT NOT OVER          $108,359 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,616,450
 OVER $5,000,000 BUT NOT OVER          $406,788 PLUS 9.32% OF EXCESS
 $10,000,000                           OVER $5,000,000
 OVER $10,000,000 BUT NOT OVER         $872,788 PLUS 9.82% OF EXCESS
 $100,000,000                          OVER $10,000,000
 OVER $100,000,000                     $9,710,788 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (vi)  For  taxable  years  beginning  in two thousand twenty-three the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $107,650    $901 plus 5.73% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,872 plus 6.17% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $15,845 plus 6.85% of excess
 $1,616,450                            over $269,300

 A. 2009--B                         29
 
 OVER $1,616,450 BUT NOT OVER          $108,125 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,616,450
 OVER $5,000,000 BUT NOT OVER          $406,554 PLUS 9.32% OF EXCESS
 $10,000,000                           OVER $5,000,000
 OVER $10,000,000 BUT NOT OVER         $872,554 PLUS 9.82% OF EXCESS
 $100,000,000                          OVER $10,000,000
 OVER $100,000,000                     $9,710,554 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (vii)  For  taxable  years  beginning  in two thousand twenty-four the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $107,650    $901 plus 5.61% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,768 plus 6.09% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $15,612 plus 6.85% of excess
 $1,616,450                            over $269,300
 OVER $1,616,450 BUT NOT OVER          $107,892 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,616,450
 OVER $5,000,000 BUT NOT OVER          $406,321 PLUS 9.32% OF EXCESS
 $10,000,000                           OVER $5,000,000
 OVER $10,000,000 BUT NOT OVER         $872,321 PLUS 9.82% OF EXCESS
 $100,000,000                          OVER $10,000,000
 OVER $100,000,000                     $9,710,321 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (viii) For taxable years beginning after two thousand twenty-four  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $107,650    $901 plus 5.5% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,672 plus 6.00% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $15,371 plus 6.85% of excess over
 $1,616,450                            $269,300
 OVER $1,616,450 BUT NOT OVER          $107,651 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,616,450
 OVER $5,000,000 BUT NOT OVER          $406,080 PLUS 9.32% OF EXCESS
 $10,000,000                           OVER $5,000,000
 OVER $10,000,000 BUT NOT OVER         $872,080 PLUS 9.82% OF EXCESS
 $100,000,000                          OVER $10,000,000
 OVER $100,000,000                     $9,710,080 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   §  3. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph
 (B) of paragraph 1 of subsection (c) of section 601 of the tax  law,  as
 added  by  section  3  of  part  R of chapter 59 of the laws of 2017, is
 amended to read as follows:

 A. 2009--B                         30
 
   (iii) For taxable years beginning in two thousand twenty the following
 rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
                                       $13,900
 Over $21,400 but not over $80,650     $1,042 plus 6.09% of excess over
                                       $21,400
 Over $80,650 but not over $215,400    $4,650 plus 6.41% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $13,288 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550 BUT NOT OVER          $72,345 PLUS 8.82% OF EXCESS OVER
 $5,000,000                             $1,077,550
 OVER $5,000,000 BUT NOT OVER          $418,305 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $884,305 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,722,305 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
                                       $13,900
 Over $21,400 but not over $80,650     $1,042 plus 5.97% of excess over
                                       $21,400
 Over $80,650 but not over $215,400    $4,579 plus 6.33% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $13,109 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550 BUT NOT OVER          $72,166 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,077,550
 OVER $5,000,000 BUT NOT OVER          $418,126 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $884,126 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,722,126 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (v) For taxable years beginning in two thousand twenty-two the follow-
 ing rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over

 A. 2009--B                         31
 
                                       $11,700
 Over $13,900 but not over $80,650     $600 plus 5.85% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,504 plus 6.25% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $12,926 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550 BUT NOT OVER          $71,984 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,077,550
 OVER $5,000,000 BUT NOT OVER          $417,944 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $883,944 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,721,944 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (vi)  For  taxable  years  beginning  in two thousand twenty-three the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $80,650     $600 plus 5.73% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,424 plus 6.17% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $12,738 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550 BUT NOT OVER          $71,796 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,077,550
 OVER $5,000,000 BUT NOT OVER          $417,756 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $883,756 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,721,756 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (vii) For taxable years beginning  in  two  thousand  twenty-four  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $80,650     $600 plus 5.61% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,344 plus 6.09% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $12,550 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550 BUT NOT OVER          $71,608 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,077,550
 OVER $5,000,000 BUT NOT OVER          $417,568 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $883,568 PLUS 9.82% OF EXCESS OVER

 A. 2009--B                         32
 
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,721,568 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   (viii)  For taxable years beginning after two thousand twenty-four the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $80,650     $600 plus 5.50% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,271 plus 6.00% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $12,356 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550 BUT NOT OVER          $71,413 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,077,550
 OVER $5,000,000 BUT NOT OVER          $417,373 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $883,373 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,721,373 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   § 4. Subparagraph (D) of paragraph 1 of subsection  (d-1)  of  section
 601  of  the tax law, as amended by section 4 of part R of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (D) The tax table benefit is the difference between (i) the amount  of
 taxable income set forth in the tax table in paragraph one of subsection
 (a)  of this section not subject to the 8.82 percent rate of tax for the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for such amount of taxable income set forth in the tax table  applicable
 to  the  taxable year in paragraph one of subsection (a) of this section
 less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
 of this paragraph. The fraction for this  subparagraph  is  computed  as
 follows:  the  numerator  is the lesser of fifty thousand dollars or the
 excess of New York adjusted gross income for the taxable year  over  two
 million  dollars  and  the  denominator  is fifty thousand dollars. This
 subparagraph shall apply only to taxable years  beginning  on  or  after
 January  first, two thousand twelve and [before January first, two thou-
 sand twenty] THEREAFTER.
   § 5. Subparagraph (C) of paragraph 2 of subsection  (d-1)  of  section
 601  of  the tax law, as amended by section 5 of part R of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (C) The tax table benefit is the difference between (i) the amount  of
 taxable income set forth in the tax table in paragraph one of subsection
 (b)  of this section not subject to the 8.82 percent rate of tax for the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for such amount of taxable income set forth in the tax table  applicable
 to  the  taxable year in paragraph one of subsection (b) of this section
 less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
 this  paragraph.  The  fraction  for  this  subparagraph  is computed as
 follows: the numerator is the lesser of fifty thousand  dollars  or  the
 excess  of  New York adjusted gross income for the taxable year over one
 million five hundred thousand dollars and the denominator is fifty thou-

 A. 2009--B                         33
 
 sand dollars. This subparagraph shall apply only to taxable years begin-
 ning on or after January first, two thousand twelve and [before  January
 first, two thousand twenty] THEREAFTER.
   §  6.  Subparagraph  (C) of paragraph 3 of subsection (d-1) of section
 601 of the tax law, as amended by section 6 of part R of chapter  59  of
 the laws of 2017, is amended to read as follows:
   (C)  The tax table benefit is the difference between (i) the amount of
 taxable income set forth in the tax table in paragraph one of subsection
 (c) of this section not subject to the 8.82 percent rate of tax for  the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for  such amount of taxable income set forth in the tax table applicable
 to the taxable year in paragraph one of subsection (c) of  this  section
 less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
 this paragraph. The  fraction  for  this  subparagraph  is  computed  as
 follows:  the  numerator  is the lesser of fifty thousand dollars or the
 excess of New York adjusted gross income for the taxable year  over  one
 million  dollars  and  the  denominator  is fifty thousand dollars. This
 subparagraph shall apply only to taxable years  beginning  on  or  after
 January  first, two thousand twelve and [before January first, two thou-
 sand twenty] THEREAFTER.
   § 7. Section 601 of the tax law is amended by adding a new  subsection
 (d-2) to read as follows:
   (D-2)  ALTERNATIVE  TAX  TABLE  BENEFIT  RECAPTURE.  FOR TAXABLE YEARS
 BEGINNING AFTER TWO THOUSAND NINETEEN FOR  A  TAXPAYER  WHOSE  NEW  YORK
 TAXABLE  INCOME  IS  OVER  $5,000,000, THERE IS HEREBY IMPOSED A SUPPLE-
 MENTAL TAX IN ADDITION TO THE TAX IMPOSED UNDER  SUBSECTIONS  (A),  (B),
 (C) AND (D-1) OF THIS SECTION FOR THE PURPOSE OF RECAPTURING THE BENEFIT
 OF  THE  TAX  TABLES CONTAINED IN SUCH SUBSECTIONS. DURING THESE TAXABLE
 YEARS, ANY REFERENCE IN THIS CHAPTER TO SUBSECTION (D) OF  THIS  SECTION
 SHALL BE READ AS A REFERENCE TO THIS SUBSECTION.
   (1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT
 SURVIVING  SPOUSES, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE
 SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARAGRAPHS  (A),  (B)  AND
 (C)  OF  THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN SUCH
 SUBPARAGRAPHS.
   (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
 (A)  OF THIS SECTION NOT SUBJECT TO THE 9.32 PERCENT RATE OF TAX FOR THE
 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
 FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
 TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION
 LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C)
 OF PARAGRAPH ONE OF SUBSECTION (D-1) OF THIS SECTION.  THE FRACTION  FOR
 THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF
 FIFTY  THOUSAND  DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME
 FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND  THE  DENOMINATOR  IS
 FIFTY  THOUSAND  DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT
 APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32 PERCENT TAX RATE.
   (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
 (A)  OF THIS SECTION NOT SUBJECT TO THE 9.82 PERCENT RATE OF TAX FOR THE
 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
 FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
 TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION
 LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C)
 OF PARAGRAPH ONE OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX  TABLE

 A. 2009--B                         34
 
 BENEFITS  IN  SUBPARAGRAPH  (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS
 SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE  NUMERATOR  IS  THE  LESSER  OF
 FIFTY  THOUSAND  DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME
 FOR  THE  TAXABLE  YEAR  OVER TEN MILLION DOLLARS AND THE DENOMINATOR IS
 FIFTY THOUSAND DOLLARS.  PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL  NOT
 APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.82 PERCENT TAX RATE.
   (C)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
 (A) OF THIS SECTION NOT SUBJECT TO THE 10.32 PERCENT RATE OF TAX FOR THE
 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
 FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
 TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION
 LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C)
 OF PARAGRAPH ONE OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX  TABLE
 BENEFITS  IN  SUBPARAGRAPHS  (A) AND (B) OF THIS PARAGRAPH. THE FRACTION
 FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESS-
 ER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW  YORK  ADJUSTED  GROSS
 INCOME  FOR  THE  TAXABLE  YEAR OVER ONE HUNDRED MILLION DOLLARS AND THE
 DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   (D) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION  OF  ANY
 TAX  CREDITS  SHALL  NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE
 TAX TABLES IN SUBSECTION (A) OF THIS SECTION MULTIPLIED BY  THE  TAXPAY-
 ER'S TAXABLE INCOME.
   (2) FOR RESIDENT HEADS OF HOUSEHOLDS, THE SUPPLEMENTAL TAX SHALL BE AN
 AMOUNT  EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARA-
 GRAPHS (A), (B) AND (C) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE
 FRACTIONS IN SUCH SUBPARAGRAPHS.
   (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
 (B)  OF THIS SECTION NOT SUBJECT TO THE 9.32 PERCENT RATE OF TAX FOR THE
 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
 FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
 TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION
 LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND  (B)  OF
 PARAGRAPH  TWO  OF  SUBSECTION  (D-1) OF THIS SECTION.  THE FRACTION FOR
 THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF
 FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED  GROSS  INCOME
 FOR  THE  TAXABLE  YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS
 FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH  SHALL  NOT
 APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32 PERCENT TAX RATE.
   (B)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
 (B) OF THIS SECTION NOT SUBJECT TO THE 9.82 PERCENT RATE OF TAX FOR  THE
 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
 FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
 TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF  THIS  SECTION
 LESS  THE  SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF
 PARAGRAPH TWO OF SUBSECTION (D-1) OF THIS SECTION  AND  SUCH  TAX  TABLE
 BENEFITS  IN  SUBPARAGRAPH  (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS
 SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE  NUMERATOR  IS  THE  LESSER  OF
 FIFTY  THOUSAND  DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME
 FOR THE TAXABLE YEAR OVER TEN MILLION DOLLARS  AND  THE  DENOMINATOR  IS
 FIFTY THOUSAND DOLLARS.
   (C)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
 (B) OF THIS SECTION NOT SUBJECT TO THE 10.32 PERCENT RATE OF TAX FOR THE

 A. 2009--B                         35
 
 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
 FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
 TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION
 LESS  THE  SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF
 PARAGRAPH TWO OF SUBSECTION (D-1) OF THIS SECTION  AND  SUCH  TAX  TABLE
 BENEFITS  IN  SUBPARAGRAPHS  (A) AND (B) OF THIS PARAGRAPH. THE FRACTION
 FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESS-
 ER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW  YORK  ADJUSTED  GROSS
 INCOME  FOR  THE  TAXABLE  YEAR OVER ONE HUNDRED MILLION DOLLARS AND THE
 DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   (D) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION  OF  ANY
 TAX  CREDITS  SHALL  NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE
 TAX TABLES IN SUBSECTION (B) OF THIS SECTION MULTIPLIED BY  THE  TAXPAY-
 ER'S TAXABLE INCOME.
   (3)  FOR  RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS
 FILING SEPARATE RETURNS AND RESIDENT ESTATES  AND  TRUSTS,  THE  SUPPLE-
 MENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS
 DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARAGRAPH MULTIPLIED
 BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS.
   (A)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
 (C) OF THIS SECTION NOT SUBJECT TO THE 9.32 PERCENT RATE OF TAX FOR  THE
 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
 FOR  SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE
 TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF  THIS  SECTION
 LESS  THE  SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF
 PARAGRAPH THREE OF SUBSECTION (D-1) OF THIS SECTION.   THE FRACTION  FOR
 THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF
 FIFTY  THOUSAND  DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME
 FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND  THE  DENOMINATOR  IS
 FIFTY  THOUSAND  DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT
 APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32 PERCENT TAX RATE.
   (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
 (C)  OF THIS SECTION NOT SUBJECT TO THE 9.82 PERCENT RATE OF TAX FOR THE
 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
 FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
 TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION
 LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPH (A) OF  PARAGRAPH
 THREE OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX TABLE BENEFITS IN
 SUBPARAGRAPH  (A)  OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH
 IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER  OF  FIFTY  THOUSAND
 DOLLARS  OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE
 YEAR OVER TEN MILLION DOLLARS AND  THE  DENOMINATOR  IS  FIFTY  THOUSAND
 DOLLARS.
   (C)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION
 (C) OF THIS SECTION NOT SUBJECT TO THE 10.32 PERCENT RATE OF TAX FOR THE
 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX
 FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE  APPLICABLE
 TO  THE  TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION
 LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND  (B)  OF
 PARAGRAPH  THREE  OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX TABLE
 BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS  PARAGRAPH.  THE  FRACTION
 FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESS-
 ER  OF  FIFTY  THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS

 A. 2009--B                         36
 
 INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED  MILLION  DOLLARS  AND  THE
 DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   (D)  PROVIDED,  HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
 TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET  FORTH  IN  THE
 TAX  TABLES  IN SUBSECTION (C) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
 ER'S TAXABLE INCOME.
   § 8. Subsection (f) of section 614 of  the  tax  law,  as  amended  by
 section  11  of part FF of chapter 59 of the laws of 2013, is amended to
 read as follows:
   (f) Adjusted standard deduction. For taxable years beginning after two
 thousand seventeen, the standard deductions set forth  in  this  section
 shall  be  the amounts set forth in this section adjusted by the cost of
 living adjustment prescribed in section six hundred one-a of this [part]
 ARTICLE for tax years two thousand thirteen [through two thousand seven-
 teen] AND THEREAFTER.
   § 9. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2020.
 
                                  PART Q
 
   Section 1. Subsection (g) of section 615 of the tax law, as amended by
 section 1 of part S of chapter 59 of the laws of  2017,  is  amended  to
 read as follows:
   (g) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, THE NEW YORK ITEM-
 IZED  DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED
 UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS MODI-
 FIED BY PARAGRAPH NINE OF SUBSECTION (C) OF THIS SECTION AND AS  LIMITED
 BY  THIS  SUBSECTION.  (1)  With respect to an individual whose New York
 adjusted gross income is over one million dollars and no more  than  ten
 million  dollars,  the  New  York  itemized deduction shall be an amount
 equal to fifty percent of any charitable contribution deduction  allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble  years  beginning  after  two  thousand nine and before two thousand
 [twenty] TWENTY-FIVE. With respect  to  an  individual  whose  New  York
 adjusted gross income is over one million dollars, the New York itemized
 deduction  shall  be  an amount equal to fifty percent of any charitable
 contribution deduction allowed under section one hundred seventy of  the
 internal  revenue  code for taxable years beginning in two thousand nine
 or after two thousand [nineteen] TWENTY-FOUR.
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount equal to  twenty-five  percent  of  any  charitable  contribution
 deduction  allowed  under  section  one  hundred seventy of the internal
 revenue code for taxable years beginning after  two  thousand  nine  and
 ending before two thousand [twenty] TWENTY-FIVE.
   §  2. Subdivision (g) of section 11-1715 of the administrative code of
 the city of New York, as amended by section 2 of part S of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (g) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, THE CITY ITEMIZED
 DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER
 SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS LIMITED  BY
 THIS  SUBDIVISION.  (1)  With  respect  to  an individual whose New York
 adjusted gross income is over one million dollars but no more  than  ten
 million  dollars,  the  New  York  itemized deduction shall be an amount
 equal to fifty percent of any charitable contribution deduction  allowed
 under section one hundred seventy of the internal revenue code for taxa-

 A. 2009--B                         37
 
 ble  years  beginning  after  two  thousand nine and before two thousand
 [twenty] TWENTY-FIVE. With respect  to  an  individual  whose  New  York
 adjusted gross income is over one million dollars, the New York itemized
 deduction  shall  be  an amount equal to fifty percent of any charitable
 contribution deduction allowed under section one hundred seventy of  the
 internal  revenue  code for taxable years beginning in two thousand nine
 or after two thousand [nineteen] TWENTY-FOUR.
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount equal to  twenty-five  percent  of  any  charitable  contribution
 deduction  allowed  under  section  one  hundred seventy of the internal
 revenue code for taxable years beginning after  two  thousand  nine  and
 ending before two thousand [twenty] TWENTY-FIVE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART R
 
   Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax
 law,  as  amended by chapter 315 of the laws of 2017, is amended to read
 as follows:
   (a) General. A taxpayer shall be allowed  a  credit  against  the  tax
 imposed  by  this  article.  Such  credit, to be computed as hereinafter
 provided, shall be allowed for bioheating fuel, used for  space  heating
 or  hot  water  production  for  residential  purposes within this state
 purchased before January first, two thousand [twenty] TWENTY-THREE. Such
 credit shall be $0.01 per percent of biodiesel per gallon of  bioheating
 fuel, not to exceed twenty cents per gallon, purchased by such taxpayer.
 Provided,  however,  that on or after January first, two thousand seven-
 teen, this credit shall not apply to bioheating fuel that is  less  than
 six percent biodiesel per gallon of bioheating fuel.
   § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as
 amended  by  chapter  315  of  the  laws  of 2017, is amended to read as
 follows:
   (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
 this article. Such credit, to be computed as hereinafter provided, shall
 be  allowed  for  bioheating  fuel,  used for space heating or hot water
 production for residential purposes within this state and  purchased  on
 or  after  July first, two thousand six and before July first, two thou-
 sand seven and on or after January first, two thousand eight and  before
 January  first, two thousand [twenty] TWENTY-THREE. Such credit shall be
 $0.01 per percent of biodiesel per gallon of  bioheating  fuel,  not  to
 exceed  twenty  cents  per gallon, purchased by such taxpayer. Provided,
 however, that on or after January first, two  thousand  seventeen,  this
 credit  shall not apply to bioheating fuel that is less than six percent
 biodiesel per gallon of bioheating fuel.
   § 3. This act shall take effect immediately.
 
                                  PART S
 
   Section 1. Paragraph (e) of section 23 of part U of chapter 61 of  the
 laws  of 2011 amending the real property tax law and other laws relating
 to establishing standards for electronic tax administration, as  amended
 by  section 5 of part G of chapter 60 of the laws of 2016, is amended to
 read as follows:

 A. 2009--B                         38
 
   (e) sections twenty-one and twenty-one-a of this act shall expire  and
 be deemed repealed December 31, [2019] 2024.
   § 2. This act shall take effect immediately.
 
                                  PART T
 
   Section 1. Subdivision 3 of section 77 of the cooperative corporations
 law,  as  amended by chapter 429 of the laws of 1992, is amended to read
 as follows:
   3. Such annual fee shall  be  paid  for  each  calendar  year  on  the
 fifteenth  day  of March next succeeding the close of such calendar year
 BUT SHALL NOT BE PAYABLE  AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWENTY;
 PROVIDED,  HOWEVER,  THAT COOPERATIVE CORPORATIONS DESCRIBED IN SUBDIVI-
 SIONS ONE OR TWO OF THIS SECTION SHALL CONTINUE TO NOT BE SUBJECT TO THE
 FRANCHISE, LICENSE, AND CORPORATION TAXES REFERENCED  IN  SUCH  SUBDIVI-
 SIONS  OR, IN THE CASE OF COOPERATIVE COOPERATIONS DESCRIBED IN SUBDIVI-
 SION TWO OF THIS SECTION, THE  TAX  IMPOSED  UNDER  SECTION  ONE-HUNDRED
 EIGHTY-SIX-A OF THE TAX LAW.
   §  2.  Section 66 of the rural electric cooperative law, as amended by
 chapter 888 of the laws of 1983, is amended to read as follows:
   § 66. License fee in lieu of all  franchise,  excise,  income,  corpo-
 ration  and  sales  and  compensating  use  taxes.  Each cooperative and
 foreign corporation doing business in this state pursuant to this  chap-
 ter shall pay annually, on or before the first day of July, to the state
 tax commission, a fee of ten dollars, but shall be exempt from all other
 franchise,  excise,  income,  corporation and sales and compensating use
 taxes whatsoever. The exemption from  the  sales  and  compensating  use
 taxes  provided  by  this  section  shall not apply to the taxes imposed
 pursuant to section eleven hundred seven or eleven hundred eight of  the
 tax  law.  Nothing  contained  in this section shall be deemed to exempt
 such corporations from collecting and paying over sales and compensating
 use taxes on retail sales of tangible  personal  property  and  services
 made  by  such  corporations  to  purchasers  required to pay such taxes
 imposed pursuant to article twenty-eight or authorized pursuant  to  the
 authority  of  article twenty-nine of the tax law. SUCH ANNUAL FEE SHALL
 NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY.
   § 3. This act shall take effect immediately.
 
                                  PART U

   Section 1. Paragraph (e) of subdivision 26 of section 210-B of the tax
 law, as amended by section 2 of part RR of chapter 59  of  the  laws  of
 2018, is amended to read as follows:
   (e)  [To]  EXCEPT  IN  THE  CASE OF A QUALIFIED REHABILITATION PROJECT
 UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
 BY THE STATE, THAT IS UNDER THE JURISDICTION OF  THE  OFFICE  OF  PARKS,
 RECREATION  AND  HISTORIC  PRESERVATION,  TO  be eligible for the credit
 allowable under this subdivision, the rehabilitation project shall be in
 whole or in part located within a census tract which  is  identified  as
 being  at or below one hundred percent of the state median family income
 as calculated as of April first of each year using the most recent  five
 year estimate from the American community survey published by the United
 States Census bureau.  If there is a change in the most recent five year
 estimate,  a  census  tract  that  qualified  for eligibility under this
 program before information about the change  was  released  will  remain

 A. 2009--B                         39
 
 eligible  for  a  credit  under  this  subdivision for an additional two
 calendar years.
   §  2. Paragraph 5 of subsection (oo) of section 606 of the tax law, as
 amended by section 1 of part RR of chapter 59 of the laws  of  2018,  is
 amended to read as follows:
   (5)  [To]  EXCEPT  IN  THE  CASE OF A QUALIFIED REHABILITATION PROJECT
 UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
 BY THE STATE, THAT IS UNDER THE JURISDICTION OF  THE  OFFICE  OF  PARKS,
 RECREATION  AND  HISTORIC  PRESERVATION,  TO  be eligible for the credit
 allowable under this subsection the rehabilitation project shall  be  in
 whole  or  in  part located within a census tract which is identified as
 being at or below one hundred percent of the state median family  income
 as  calculated as of April first of each year using the most recent five
 year estimate from the American community survey published by the United
 States Census bureau.  If there is a change in the most recent five year
 estimate, a census tract  that  qualified  for  eligibility  under  this
 program  before  information  about  the change was released will remain
 eligible for a credit under this subsection for an additional two calen-
 dar years.
   § 3. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as
 amended by section 3 of part RR of chapter 59 of the laws  of  2018,  is
 amended to read as follows:
   (5)  [To]  EXCEPT  IN  THE  CASE OF A QUALIFIED REHABILITATION PROJECT
 UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
 BY THE STATE, THAT IS UNDER THE JURISDICTION OF  THE  OFFICE  OF  PARKS,
 RECREATION  AND  HISTORIC  PRESERVATION,  TO  be eligible for the credit
 allowable under this subdivision, the rehabilitation project shall be in
 whole or in part located within a census tract which  is  identified  as
 being  at or below one hundred percent of the state median family income
 as calculated as of April first of each year using the most recent  five
 year estimate from the American community survey published by the United
 States Census bureau.  If there is a change in the most recent five year
 estimate,  a  census  tract  that  qualified  for eligibility under this
 program before information about the change  was  released  will  remain
 eligible  for  a  credit  under  this  subdivision for an additional two
 calendar years.
   § 4. Subparagraph (A) of paragraph 1 of subsection (oo) of section 606
 of the tax law, as amended by section 1 of part RR of chapter 59 of  the
 laws  of  2018,  is  amended and two new paragraphs 6 and 7 are added to
 read as follows:
   (A) For taxable years beginning on or after January first,  two  thou-
 sand  ten and before January first, two thousand twenty-five, a taxpayer
 shall be allowed a credit  as  hereinafter  provided,  against  the  tax
 imposed  by  this  article, in an amount equal to one hundred percent of
 the amount of credit allowed the taxpayer with respect  to  a  certified
 historic structure, AND ONE HUNDRED FIFTY PERCENT OF THE AMOUNT OF CRED-
 IT  ALLOWED  THE TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE
 THAT IS A SMALL PROJECT, under internal revenue code  section  47(c)(3),
 determined  without  regard to ratably allocating the credit over a five
 year period as required by subsection  (a)  of  such  section  47,  with
 respect  to  a  certified  historic  structure located within the state.
 Provided, however, the credit shall not exceed five million dollars. For
 taxable years beginning on or after January first, two thousand  twenty-
 five,  a  taxpayer  shall  be  allowed a credit as hereinafter provided,
 against the tax imposed by this article, in an amount  equal  to  thirty
 percent  of  the amount of credit allowed the taxpayer with respect to a

 A. 2009--B                         40
 
 certified  historic  structure  under  internal  revenue  code   section
 47(c)(3),  determined  without  regard  to ratably allocating the credit
 over a five year period as required by subsection (a)  of  such  section
 47,  with  respect  to a certified historic structure located within the
 state; provided, however, the credit shall not exceed one hundred  thou-
 sand dollars.
   (6)(A)  A  TAXPAYER  ALLOWED  A CREDIT PURSUANT TO THIS SUBSECTION MAY
 TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON  OR  ENTITY,
 WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITH RESPECT TO THE REHABIL-
 ITATED  HISTORIC BUILDING MAY BE ALLOCATED AND NOTWITHSTANDING THAT SUCH
 OTHER PERSON OR ENTITY OWNS NO INTEREST IN  THE  REHABILITATED  HISTORIC
 BUILDING OR IN AN ENTITY WITH AN OWNERSHIP INTEREST IN THE REHABILITATED
 HISTORIC  BUILDING.   TRANSFEREES SHALL BE ENTITLED TO APPLY TRANSFERRED
 CREDIT TO A TAX IMPOSED UNDER ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE
 OF THIS CHAPTER, PROVIDED ALL REQUIREMENTS FOR CLAIMING THE  CREDIT  ARE
 MET.  A  TRANSFEREE  MAY  NOT  TRANSFER  ANY CREDIT, OR PORTION THEREOF,
 ACQUIRED BY TRANSFER.
   (B) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS  ARTICLE  MUST  ENTER
 INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE TRANSFER CONTRACT MUST
 SPECIFY  (I)  THE  BUILDING  IDENTIFICATION  NUMBERS  FOR  REHABILITATED
 HISTORIC BUILDING IN THE  PROJECT;  (II)  THE  DATE  SUCH  REHABILITATED
 HISTORIC  BUILDING  WAS PLACED INTO SERVICE; (III) THE FIVE YEAR COMPLI-
 ANCE PERIOD FOR THE PROJECT; (IV) THE SCHEDULE OF YEARS  FOR  WHICH  THE
 TRANSFER  CREDIT  MAY  BE  CLAIMED  AND  THE AMOUNT OF CREDIT PREVIOUSLY
 CLAIMED; (V) THE AMOUNT OF CONSIDERATION RECEIVED BY  THE  TAXPAYER  FOR
 THE TRANSFER CREDIT; AND (VI) THE AMOUNT OF CREDIT BEING TRANSFERRED.
   (C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED-
 IT  PURSUANT TO THIS SUBSECTION AND SEEKING TO TRANSFER THE CREDIT FILES
 A TRANSFER STATEMENT WITH THE  COMMISSIONER  OF  PARKS,  RECREATION  AND
 HISTORIC  PRESERVATION PRIOR TO THE TRANSFER AND HE OR SHE APPROVES SUCH
 TRANSFER. THE TRANSFER STATEMENT SHALL  PROVIDE  THE  NAME  AND  FEDERAL
 IDENTIFICATION NUMBERS OF THE FILING TRANSFEROR AND THE TAXPAYER TO WHOM
 THE  FILING  TRANSFEROR TRANSFERRED THE CREDIT, AND THE AMOUNT OF CREDIT
 TRANSFERRED TO EACH SUCH PERSON  OR  ENTITY.  A  COPY  OF  THE  TRANSFER
 CONTRACT  SHALL  BE  ATTACHED  TO  THE TRANSFER STATEMENT. THE STATEMENT
 SHALL ALSO CONTAIN SUCH OTHER INFORMATION AS THE COMMISSIONER OF  PARKS,
 RECREATION  AND  HISTORIC  PRESERVATION MAY REQUIRE. AFTER REVIEWING THE
 TRANSFER CONTRACT AND THE TRANSFER STATEMENT, THE COMMISSIONER OF PARKS,
 RECREATION AND HISTORIC PRESERVATION SHALL APPROVE OR DENY THE  TRANSFER
 AS PROVIDED IN THIS SUBSECTION. IF THE COMMISSIONER OF PARKS, RECREATION
 AND  HISTORIC  PRESERVATION APPROVES THE TRANSFER, HE OR SHE SHALL ISSUE
 AN APPROVAL STATEMENT THAT PROVIDES  THE  NAME  OF  THE  TRANSFEROR  AND
 TRANSFEREE, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFOR-
 MATION  AS  THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA-
 TION AND THE COMMISSIONER  DEEM  NECESSARY.  A  COPY  OF  THE  STATEMENT
 APPROVED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA-
 TION MUST BE ATTACHED TO THE TRANSFEREE'S TAX RETURN. IF THE COMMISSION-
 ER  OF  PARKS, RECREATION AND HISTORIC PRESERVATION DENIES THE TRANSFER,
 HE OR SHE SHALL PROVIDE THE TAXPAYER A WRITTEN  DETERMINATION  FOR  SUCH
 DENIAL. THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION,
 IN  CONSULTATION  WITH THE COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCE-
 DURES AND STANDARDS DEEMED NECESSARY  FOR  THE  TRANSFERABILITY  OF  THE
 REHABILITATION TAX CREDIT.
   (D)  THE  COMMISSIONER  OF PARKS, RECREATION AND HISTORIC PRESERVATION
 SHALL FORWARD COPIES OF ALL TRANSFER STATEMENTS AND ATTACHMENTS  THERETO
 AND  APPROVAL  STATEMENTS TO THE DEPARTMENT WITHIN THIRTY DAYS AFTER THE

 A. 2009--B                         41
 
 TRANSFER IS APPROVED  BY  THE  COMMISSIONER  OF  PARKS,  RECREATION  AND
 HISTORIC PRESERVATION.
   (E)  THE  TAXPAYER  THAT  ORIGINALLY  RECEIVED THE CREDIT SHALL REMAIN
 SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
 ER WITH RESPECT TO THE CREDIT, NONE OF WHICH SHALL APPLY TO A  PARTY  TO
 WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANSFERRED.
   (7)  FOR  PURPOSES  OF  THIS SUBSECTION THE TERM "SMALL PROJECT" MEANS
 QUALIFIED REHABILITATION EXPENDITURES TOTALING FIVE MILLION  DOLLARS  OR
 LESS.
   § 5. Subparagraph (A) of paragraph 5 of subsection (pp) of section 606
 of the tax law, as added by chapter 547 of the laws of 2006, clause (iv)
 as  amended  by  chapter  239 of the laws of 2009, is amended to read as
 follows:
   (A) The term "qualified historic home" means,  for  purposes  of  this
 subsection,  a  certified  historic  structure  located  within New York
 state:
   (i) which has been substantially rehabilitated,
   (ii) which, or any portion of which, is owned, in whole  or  part,  by
 the taxpayer,
   (iii)  in  which the taxpayer resides during the taxable year in which
 the taxpayer is allowed a credit under this subsection, and
   (iv) (1) which is in whole or in part a targeted area residence within
 the meaning of section 143(j) of the internal revenue code;  or  (2)  is
 located  within  a census tract which is identified as being at or below
 one hundred percent of the state median family income in the most recent
 federal census; OR (3) WHICH IS LOCATED IN A CITY WITH A  POPULATION  OF
 LESS  THAN ONE MILLION WITH A POVERTY RATE GREATER THAN FIFTEEN PERCENT,
 ROUNDED TO THE NEAREST WHOLE NUMBER, IN THE TWO THOUSAND SEVENTEEN AMER-
 ICAN COMMUNITY SURVEY.
   § 6. Subparagraph (i) of paragraph (a) of subdivision  26  of  section
 210-B  of  the tax law, as amended by section 2 of part RR of chapter 59
 of the laws of 2018, is amended and two new paragraphs (f) and  (g)  are
 added to read as follows:
   (i)  For  taxable years beginning on or after January first, two thou-
 sand ten, and before January first, two thousand twenty-five, a taxpayer
 shall be allowed a credit  as  hereinafter  provided,  against  the  tax
 imposed  by  this  article, in an amount equal to one hundred percent of
 the amount of credit allowed the taxpayer for the same taxable year with
 respect to a certified historic structure, AND ONE HUNDRED FIFTY PERCENT
 OF THE AMOUNT OF CREDIT ALLOWED THE TAXPAYER WITH RESPECT TO A CERTIFIED
 HISTORIC STRUCTURE THAT IS A SMALL PROJECT, under internal revenue  code
 section  47(c)(3),  determined  without regard to ratably allocating the
 credit over a five year period as required by  subsection  (a)  of  such
 section 47, with respect to a certified historic structure located with-
 in  the  state.  Provided,  however,  the  credit  shall not exceed five
 million dollars.
   (F)(1) A TAXPAYER ALLOWED A CREDIT PURSUANT TO  THIS  SUBDIVISION  MAY
 TRANSFER  THE  CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY,
 WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITH RESPECT TO THE REHABIL-
 ITATED HISTORIC BUILDING MAY BE ALLOCATED AND NOTWITHSTANDING THAT  SUCH
 OTHER  PERSON  OR  ENTITY OWNS NO INTEREST IN THE REHABILITATED HISTORIC
 BUILDING OR IN AN ENTITY WITH AN OWNERSHIP INTEREST IN THE REHABILITATED
 HISTORIC BUILDING. TRANSFEREES SHALL BE ENTITLED  TO  APPLY  TRANSFERRED
 CREDIT TO A TAX IMPOSED UNDER ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE
 OF  THIS  CHAPTER, PROVIDED ALL REQUIREMENTS FOR CLAIMING THE CREDIT ARE

 A. 2009--B                         42
 
 MET. A TRANSFEREE MAY NOT  TRANSFER  ANY  CREDIT,  OR  PORTION  THEREOF,
 ACQUIRED BY TRANSFER.
   (2)  A  TAXPAYER  ALLOWED A CREDIT PURSUANT TO THIS ARTICLE MUST ENTER
 INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE TRANSFER CONTRACT MUST
 SPECIFY  (I)  THE  BUILDING  IDENTIFICATION  NUMBERS  FOR  REHABILITATED
 HISTORIC  BUILDING  IN  THE  PROJECT;  (II)  THE DATE SUCH REHABILITATED
 HISTORIC BUILDING WAS PLACED INTO SERVICE; (III) THE FIVE  YEAR  COMPLI-
 ANCE  PERIOD  FOR  THE PROJECT; (IV) THE SCHEDULE OF YEARS FOR WHICH THE
 TRANSFER CREDIT MAY BE CLAIMED  AND  THE  AMOUNT  OF  CREDIT  PREVIOUSLY
 CLAIMED;  (V)  THE  AMOUNT OF CONSIDERATION RECEIVED BY THE TAXPAYER FOR
 THE TRANSFER CREDIT; AND (VI) THE AMOUNT OF CREDIT BEING TRANSFERRED.
   (3) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED-
 IT PURSUANT TO THIS SUBDIVISION AND SEEKING TO TRANSFER THE CREDIT FILES
 A TRANSFER STATEMENT WITH THE  COMMISSIONER  OF  PARKS,  RECREATION  AND
 HISTORIC  PRESERVATION PRIOR TO THE TRANSFER AND HE OR SHE APPROVES SUCH
 TRANSFER. THE TRANSFER STATEMENT SHALL  PROVIDE  THE  NAME  AND  FEDERAL
 IDENTIFICATION NUMBERS OF THE FILING TRANSFEROR AND THE TAXPAYER TO WHOM
 THE  FILING  TRANSFEROR TRANSFERRED THE CREDIT, AND THE AMOUNT OF CREDIT
 TRANSFERRED TO EACH SUCH PERSON  OR  ENTITY.  A  COPY  OF  THE  TRANSFER
 CONTRACT  SHALL  BE  ATTACHED  TO  THE TRANSFER STATEMENT. THE STATEMENT
 SHALL ALSO CONTAIN SUCH OTHER INFORMATION AS THE COMMISSIONER OF  PARKS,
 RECREATION  AND  HISTORIC  PRESERVATION MAY REQUIRE. AFTER REVIEWING THE
 TRANSFER CONTRACT AND THE TRANSFER STATEMENT, THE COMMISSIONER OF PARKS,
 RECREATION AND HISTORIC PRESERVATION SHALL APPROVE OR DENY THE  TRANSFER
 AS  PROVIDED  IN  THIS SUBDIVISION. IF THE COMMISSIONER OF PARKS, RECRE-
 ATION AND HISTORIC PRESERVATION APPROVES THE TRANSFER, HE OR  SHE  SHALL
 ISSUE AN APPROVAL STATEMENT THAT PROVIDES THE NAME OF THE TRANSFEROR AND
 TRANSFEREE, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFOR-
 MATION  AS  THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA-
 TION AND THE COMMISSIONER  DEEM  NECESSARY.  A  COPY  OF  THE  STATEMENT
 APPROVED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA-
 TION MUST BE ATTACHED TO THE TRANSFEREE'S TAX RETURN. IF THE COMMISSION-
 ER  OF  PARKS, RECREATION AND HISTORIC PRESERVATION DENIES THE TRANSFER,
 HE OR SHE SHALL PROVIDE THE TAXPAYER A WRITTEN  DETERMINATION  FOR  SUCH
 DENIAL. THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION,
 IN  CONSULTATION  WITH THE COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCE-
 DURES AND STANDARDS DEEMED NECESSARY  FOR  THE  TRANSFERABILITY  OF  THE
 REHABILITATION TAX CREDIT.
   (4)  THE  COMMISSIONER  OF PARKS, RECREATION AND HISTORIC PRESERVATION
 SHALL FORWARD COPIES OF ALL TRANSFER STATEMENTS AND ATTACHMENTS  THERETO
 AND  APPROVAL  STATEMENTS TO THE DEPARTMENT WITHIN THIRTY DAYS AFTER THE
 TRANSFER IS APPROVED  BY  THE  COMMISSIONER  OF  PARKS,  RECREATION  AND
 HISTORIC PRESERVATION.
   (5)  THE  TAXPAYER  THAT  ORIGINALLY  RECEIVED THE CREDIT SHALL REMAIN
 SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
 ER WITH RESPECT TO THE CREDIT, NONE OF WHICH SHALL APPLY TO A  PARTY  TO
 WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANSFERRED.
   (G)  FOR  PURPOSES OF THIS SUBDIVISION "SMALL PROJECT" MEANS QUALIFIED
 REHABILITATION EXPENDITURES TOTALING FIVE MILLION DOLLARS OR LESS.
   § 7. Subparagraph (A) of paragraph 1 of  subdivision  (y)  of  section
 1511 of the tax law, as amended by section 3 of part RR of chapter 59 of
 the laws of 2018, is amended and two new paragraphs 6 and 7 are added to
 read as follows:
   (A)  For  taxable years beginning on or after January first, two thou-
 sand ten and before January first, two thousand twenty-five, a  taxpayer
 shall  be  allowed  a  credit  as  hereinafter provided, against the tax

 A. 2009--B                         43
 
 imposed by this article, in an amount equal to one  hundred  percent  of
 the  amount  of  credit allowed the taxpayer with respect to a certified
 historic structure, AND ONE HUNDRED FIFTY PERCENT OF THE AMOUNT OF CRED-
 IT  ALLOWED  THE TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE
 THAT IS A SMALL PROJECT, under internal revenue code  section  47(c)(3),
 determined  without  regard to ratably allocating the credit over a five
 year period as required by subsection  (a)  of  such  section  47,  with
 respect  to  a  certified  historic  structure located within the state.
 Provided, however, the credit shall not exceed five million dollars. For
 taxable years beginning on or after January first, two thousand  twenty-
 five,  a  taxpayer  shall  be  allowed a credit as hereinafter provided,
 against the tax imposed by this article, in an amount  equal  to  thirty
 percent  of  the amount of credit allowed the taxpayer with respect to a
 certified  historic  structure  under  internal  revenue  code   section
 47(c)(3),  determined  without  regard  to ratably allocating the credit
 over a five year period as required by subsection (a) of such section 47
 with respect to a certified historic structure located within the state.
 Provided, however, the credit shall  not  exceed  one  hundred  thousand
 dollars.
   (6)(A)  A  TAXPAYER  ALLOWED A CREDIT PURSUANT TO THIS SUBDIVISION MAY
 TRANSFER THE CREDIT, IN WHOLE OR IN PART, TO ANOTHER PERSON  OR  ENTITY,
 WHO SHALL BE REFERRED TO AS THE TRANSFEREE, WITH RESPECT TO THE REHABIL-
 ITATED  HISTORIC BUILDING MAY BE ALLOCATED AND NOTWITHSTANDING THAT SUCH
 OTHER PERSON OR ENTITY OWNS NO INTEREST IN  THE  REHABILITATED  HISTORIC
 BUILDING OR IN AN ENTITY WITH AN OWNERSHIP INTEREST IN THE REHABILITATED
 HISTORIC  BUILDING.   TRANSFEREES SHALL BE ENTITLED TO APPLY TRANSFERRED
 CREDIT TO A TAX IMPOSED UNDER ARTICLE NINE-A, TWENTY-TWO OR THIRTY-THREE
 OF THIS CHAPTER, PROVIDED ALL REQUIREMENTS FOR CLAIMING THE  CREDIT  ARE
 MET.  A  TRANSFEREE  MAY  NOT  TRANSFER  ANY CREDIT, OR PORTION THEREOF,
 ACQUIRED BY TRANSFER.
   (B) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS  ARTICLE  MUST  ENTER
 INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE TRANSFER CONTRACT MUST
 SPECIFY  (I)  THE  BUILDING  IDENTIFICATION  NUMBERS  FOR  REHABILITATED
 HISTORIC BUILDING IN THE  PROJECT;  (II)  THE  DATE  SUCH  REHABILITATED
 HISTORIC  BUILDING  WAS PLACED INTO SERVICE; (III) THE FIVE YEAR COMPLI-
 ANCE PERIOD FOR THE PROJECT; (IV) THE SCHEDULE OF YEARS  FOR  WHICH  THE
 TRANSFER  CREDIT  MAY  BE  CLAIMED  AND  THE AMOUNT OF CREDIT PREVIOUSLY
 CLAIMED; (V) THE AMOUNT OF CONSIDERATION RECEIVED BY  THE  TAXPAYER  FOR
 THE TRANSFER CREDIT; AND (VI) THE AMOUNT OF CREDIT BEING TRANSFERRED.
   (C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED-
 IT PURSUANT TO THIS SUBDIVISION AND SEEKING TO TRANSFER THE CREDIT FILES
 A  TRANSFER  STATEMENT  WITH  THE  COMMISSIONER OF PARKS, RECREATION AND
 HISTORIC PRESERVATION PRIOR TO THE TRANSFER AND HE OR SHE APPROVES  SUCH
 TRANSFER.    THE  TRANSFER  STATEMENT SHALL PROVIDE THE NAME AND FEDERAL
 IDENTIFICATION NUMBERS OF THE FILING TRANSFEROR AND THE TAXPAYER TO WHOM
 THE FILING TRANSFEROR TRANSFERRED THE CREDIT, AND THE AMOUNT  OF  CREDIT
 TRANSFERRED  TO  EACH  SUCH  PERSON  OR  ENTITY.  A COPY OF THE TRANSFER
 CONTRACT SHALL BE ATTACHED TO  THE  TRANSFER  STATEMENT.  THE  STATEMENT
 SHALL  ALSO CONTAIN SUCH OTHER INFORMATION AS THE COMMISSIONER OF PARKS,
 RECREATION AND HISTORIC PRESERVATION MAY REQUIRE.  AFTER  REVIEWING  THE
 TRANSFER CONTRACT AND THE TRANSFER STATEMENT, THE COMMISSIONER OF PARKS,
 RECREATION  AND HISTORIC PRESERVATION SHALL APPROVE OR DENY THE TRANSFER
 AS PROVIDED IN THIS SUBDIVISION. IF THE COMMISSIONER  OF  PARKS,  RECRE-
 ATION  AND  HISTORIC PRESERVATION APPROVES THE TRANSFER, HE OR SHE SHALL
 ISSUE AN APPROVAL STATEMENT THAT PROVIDES THE NAME OF THE TRANSFEROR AND
 TRANSFEREE, THE AMOUNT OF CREDIT BEING TRANSFERRED AND SUCH OTHER INFOR-

 A. 2009--B                         44
 
 MATION AS THE COMMISSIONER OF PARKS, RECREATION AND  HISTORIC  PRESERVA-
 TION  AND  THE  COMMISSIONER  DEEM  NECESSARY.  A  COPY OF THE STATEMENT
 APPROVED BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVA-
 TION MUST BE ATTACHED TO THE TRANSFEREE'S TAX RETURN. IF THE COMMISSION-
 ER  OF  PARKS, RECREATION AND HISTORIC PRESERVATION DENIES THE TRANSFER,
 HE OR SHE SHALL PROVIDE THE TAXPAYER A WRITTEN  DETERMINATION  FOR  SUCH
 DENIAL. THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRESERVATION,
 IN  CONSULTATION  WITH THE COMMISSIONER, MAY ESTABLISH SUCH OTHER PROCE-
 DURES AND STANDARDS DEEMED NECESSARY  FOR  THE  TRANSFERABILITY  OF  THE
 REHABILITATION TAX CREDIT.
   (D)  THE  COMMISSIONER  OF PARKS, RECREATION AND HISTORIC PRESERVATION
 SHALL FORWARD COPIES OF ALL TRANSFER STATEMENTS AND ATTACHMENTS  THERETO
 AND  APPROVAL  STATEMENTS TO THE DEPARTMENT WITHIN THIRTY DAYS AFTER THE
 TRANSFER IS APPROVED  BY  THE  COMMISSIONER  OF  PARKS,  RECREATION  AND
 HISTORIC PRESERVATION.
   (E)  THE  TAXPAYER  THAT  ORIGINALLY  RECEIVED THE CREDIT SHALL REMAIN
 SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
 ER WITH RESPECT TO THE CREDIT, NONE OF WHICH SHALL APPLY TO A  PARTY  TO
 WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANSFERRED.
   (7)  FOR  PURPOSES OF THIS SUBDIVISION "SMALL PROJECT" MEANS QUALIFIED
 REHABILITATION EXPENDITURES TOTALING FIVE MILLION DOLLARS OR LESS.
   § 8. This act shall take effect immediately, and shall apply to  taxa-
 ble years beginning on or after January 1, 2020.
 
                                  PART V
 
   Section  1.  Subdivision (jj) of section 1115 of the tax law, as added
 by section 1 of part UU of chapter 59 of the laws of 2015, is amended to
 read as follows:
   (jj) Tangible personal property or services  otherwise  taxable  under
 this  article sold to a related person shall not be subject to the taxes
 imposed by section eleven hundred five of this article or the compensat-
 ing use tax imposed under section eleven hundred  ten  of  this  article
 where the purchaser can show that the following conditions have been met
 to  the  extent they are applicable: (1)(i) the vendor and the purchaser
 are referenced as either a "covered company"  as  described  in  section
 243.2(f)  or a "material entity" as described in section 243.2(l) of the
 Code of Federal Regulations in a resolution plan that has been submitted
 to an agency of the United States for the purpose of satisfying subpara-
 graph 1 of paragraph (d) of section one hundred sixty-five of the  Dodd-
 Frank  Wall Street Reform and Consumer Protection Act (the "Act") or any
 successor law, or (ii) the vendor and the purchaser are  separate  legal
 entities  pursuant  to a divestiture directed pursuant to subparagraph 5
 of paragraph (d) of section one hundred sixty-five of such  act  or  any
 successor law; (2) the sale would not have occurred between such related
 entities were it not for such resolution plan or divestiture; and (3) in
 acquiring  such  property  or  services,  the  vendor  did  not claim an
 exemption from the tax imposed by this state or another state  based  on
 the  vendor's  intent  to  resell such services or property. A person is
 related to another person for purposes of this subdivision if the person
 bears a relationship to such person described  in  section  two  hundred
 sixty-seven of the internal revenue code. The exemption provided by this
 subdivision  shall  not  apply to sales made, services rendered, or uses
 occurring after June  thirtieth,  two  thousand  [nineteen]  TWENTY-ONE,
 except  with respect to sales made, services rendered, or uses occurring
 pursuant to binding contracts entered into on or before such  date;  but

 A. 2009--B                         45
 
 in no case shall such exemption apply after June thirtieth, two thousand
 twenty-four.
   § 2. This act shall take effect immediately.
 
                                  PART W
 
   Section  1.  The mental hygiene law is amended by adding a new section
 32.38 to read as follows:
 § 32.38 THE RECOVERY TAX CREDIT PROGRAM.
   (A) AUTHORIZATION. THE COMMISSIONER IS AUTHORIZED TO AND SHALL  ESTAB-
 LISH  AND  ADMINISTER  THE  RECOVERY  TAX  CREDIT PROGRAM TO PROVIDE TAX
 INCENTIVES TO CERTIFIED EMPLOYERS FOR EMPLOYING ELIGIBLE INDIVIDUALS  IN
 RECOVERY  FROM A SUBSTANCE USE DISORDER IN PART-TIME AND FULL-TIME POSI-
 TIONS IN THE STATE. THE COMMISSIONER IS AUTHORIZED TO ALLOCATE UP TO TWO
 MILLION DOLLARS OF TAX CREDITS ANNUALLY  FOR  THE  RECOVERY  TAX  CREDIT
 PROGRAM BEGINNING IN THE YEAR TWO THOUSAND TWENTY.
   (B)  DEFINITIONS.  1.  THE TERM "CERTIFIED EMPLOYER" MEANS AN EMPLOYER
 THAT HAS RECEIVED A CERTIFICATE OF  TAX  CREDIT  FROM  THE  COMMISSIONER
 AFTER THE COMMISSIONER HAS DETERMINED THAT THE EMPLOYER:
   (I)  PROVIDES  A  RECOVERY  SUPPORTIVE ENVIRONMENT FOR THEIR EMPLOYEES
 EVIDENCED BY A FORMAL WORKING RELATIONSHIP  WITH  A  LOCAL  RECOVERY  OR
 TREATMENT  PROVIDER  CERTIFIED  BY  THE  OFFICE  TO  PROVIDE SUPPORT FOR
 EMPLOYERS INCLUDING ANY NECESSARY ASSISTANCE IN THE  HIRING  PROCESS  OF
 ELIGIBLE  INDIVIDUALS  IN  RECOVERY  FROM  A  SUBSTANCE USE DISORDER AND
 TRAINING FOR EMPLOYERS OR SUPERVISORS; AND
   (II) FULFILLS THE ELIGIBILITY CRITERIA SET FORTH IN THIS  SECTION  AND
 BY  THE  COMMISSIONER  TO PARTICIPATE IN THE RECOVERY TAX CREDIT PROGRAM
 ESTABLISHED IN THIS SECTION.
   2. THE TERM "ELIGIBLE INDIVIDUAL" MEANS AN INDIVIDUAL WITH A SUBSTANCE
 USE DISORDER AS THAT TERM IS DEFINED IN SECTION 1.03 OF THIS CHAPTER WHO
 IS IN A STATE OF WELLNESS WHERE THERE IS AN ABATEMENT OF SIGNS AND SYMP-
 TOMS THAT CHARACTERIZE ACTIVE ADDICTION  AND  HAS  DEMONSTRATED  TO  THE
 QUALIFIED EMPLOYER'S SATISFACTION, PURSUANT TO GUIDELINES ESTABLISHED BY
 THE  OFFICE,  THAT  HE  OR SHE HAS COMPLETED A COURSE OF TREATMENT OR IS
 CURRENTLY IN RECEIPT OF TREATMENT FOR SUCH SUBSTANCE USE  DISORDER.    A
 RELAPSE IN AN INDIVIDUAL'S STATE OF WELLNESS SHALL NOT MAKE THE INDIVID-
 UAL  INELIGIBLE, SO LONG AS SUCH INDIVIDUAL SHOWS A CONTINUED COMMITMENT
 TO RECOVERY THAT ALIGNS WITH AN INDIVIDUAL'S  RELAPSE  PREVENTION  PLAN,
 DISCHARGE PLAN, AND/OR RECOVERY PLAN.
   (C) APPLICATION AND APPROVAL PROCESS. 1. TO PARTICIPATE IN THE PROGRAM
 ESTABLISHED  BY  THIS SECTION, AN EMPLOYER MUST, IN A FORM PRESCRIBED BY
 THE COMMISSIONER, APPLY ANNUALLY TO THE OFFICE BY JANUARY  FIFTEENTH  TO
 CLAIM CREDIT BASED ON ELIGIBLE INDIVIDUALS EMPLOYED DURING THE PRECEDING
 CALENDAR YEAR. AS PART OF SUCH APPLICATION, AN EMPLOYER MUST:
   (I) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
 TAX  INFORMATION  WITH  THE  OFFICE  OF  ALCOHOLISM  AND SUBSTANCE ABUSE
 SERVICES. HOWEVER, ANY INFORMATION  SHARED  BECAUSE  OF  THIS  AGREEMENT
 SHALL  NOT  BE  AVAILABLE  FOR  DISCLOSURE OR INSPECTION UNDER THE STATE
 FREEDOM OF INFORMATION LAW.
   (II) ALLOW THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE  SERVICES  AND
 ITS AGENTS ACCESS TO LIMITED AND SPECIFIC INFORMATION NECESSARY TO MONI-
 TOR  COMPLIANCE WITH PROGRAM ELIGIBILITY REQUIREMENTS.  SUCH INFORMATION
 SHALL BE CONFIDENTIAL AND ONLY USED  FOR  THE  STATED  PURPOSE  OF  THIS
 SECTION.
   (III)  DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED PROGRAM ELIGIBILITY
 REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY,  INCLUDING  THE

 A. 2009--B                         46
 
 NUMBER  OF HOURS WORKED BY ANY ELIGIBLE INDIVIDUAL, FOR THE COMMISSIONER
 TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED.
   2.  (I) AFTER REVIEWING THE APPLICATION AND FINDING IT SUFFICIENT, THE
 COMMISSIONER SHALL ISSUE A CERTIFICATE OF TAX CREDIT  BY  MARCH  THIRTY-
 FIRST.  SUCH  CERTIFICATE SHALL INCLUDE, BUT NOT BE LIMITED TO, THE NAME
 AND EMPLOYER IDENTIFICATION NUMBER OF THE CERTIFIED EMPLOYER, THE AMOUNT
 OF CREDIT THAT THE CERTIFIED EMPLOYER MAY CLAIM, AND ANY OTHER  INFORMA-
 TION THE COMMISSIONER OF TAXATION AND FINANCE DETERMINES IS NECESSARY.
   (II)  IN DETERMINING THE AMOUNT OF CREDIT THAT ANY EMPLOYER MAY CLAIM,
 THE COMMISSIONER SHALL REVIEW ALL CLAIMS SUBMITTED FOR CREDIT BY EMPLOY-
 ERS AND, TO THE EXTENT  THAT  THE  TOTAL  AMOUNT  CLAIMED  BY  EMPLOYERS
 EXCEEDS  THE  AMOUNT  ALLOCATED  FOR  THE PROGRAM IN THAT CALENDAR YEAR,
 SHALL ISSUE CREDITS ON A PRO-RATA BASIS CORRESPONDING TO EACH CLAIMANT'S
 SHARE OF THE TOTAL CLAIMED AMOUNT.
   (D) ELIGIBILITY. A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CRED-
 IT EQUAL TO THE PRODUCT OF ONE DOLLAR AND THE NUMBER OF HOURS WORKED  BY
 EACH  ELIGIBLE  INDIVIDUAL  DURING  SUCH ELIGIBLE INDIVIDUAL'S PERIOD OF
 EMPLOYMENT.  THE CREDIT SHALL NOT BE ALLOWED UNLESS THE  ELIGIBLE  INDI-
 VIDUAL  HAS  WORKED IN STATE FOR A MINIMUM OF FIVE HUNDRED HOURS FOR THE
 CERTIFIED EMPLOYER, AND THE CREDIT CANNOT EXCEED  TWO  THOUSAND  DOLLARS
 PER ELIGIBLE INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYER IN THE STATE.
 THE  CERTIFIED  EMPLOYER  MAY  CLAIM A CREDIT FOR EACH ELIGIBLE EMPLOYEE
 STARTING ON THE DAY THE EMPLOYEE IS HIRED AND ENDS ON  DECEMBER  THIRTY-
 FIRST OF THE IMMEDIATELY SUCCEEDING CALENDAR YEAR OR THE LAST DAY OF THE
 EMPLOYEE'S  EMPLOYMENT BY THE CERTIFIED EMPLOYER, WHICHEVER COMES FIRST.
 IF AN EMPLOYEE HAS WORKED IN EXCESS OF FIVE HUNDRED  HOURS  BETWEEN  THE
 DATE  OF  HIRING AND DECEMBER THIRTY-FIRST OF THAT YEAR, AN EMPLOYER CAN
 ELECT TO COMPUTE AND CLAIM A CREDIT FOR SUCH EMPLOYEE IN THAT YEAR BASED
 ON THE HOURS WORKED BY DECEMBER THIRTY-FIRST. ALTERNATIVELY, THE EMPLOY-
 ER MAY ELECT TO INCLUDE SUCH INDIVIDUAL IN THE COMPUTATION OF THE CREDIT
 IN THE YEAR IMMEDIATELY SUCCEEDING THE YEAR IN WHICH  THE  EMPLOYEE  WAS
 HIRED.  IN  SUCH  CASE, THE CREDIT SHALL BE COMPUTED ON THE BASIS OF ALL
 HOURS WORKED BY SUCH ELIGIBLE INDIVIDUAL FROM THE DATE OF  HIRE  TO  THE
 EARLIER  OF  THE  LAST DAY OF EMPLOYMENT OR DECEMBER THIRTY-FIRST OF THE
 SUCCEEDING YEAR. HOWEVER, IN NO EVENT MAY AN  EMPLOYEE  GENERATE  CREDIT
 FOR  HOURS WORKED IN EXCESS OF TWO THOUSAND HOURS. AN EMPLOYER MAY CLAIM
 CREDIT ONLY ONCE WITH RESPECT TO ANY ELIGIBLE  INDIVIDUAL  AND  MAY  NOT
 AGGREGATE  HOURS OF TWO OR MORE EMPLOYEES TO REACH THE MINIMUM NUMBER OF
 HOURS.
   (E) DUTIES  OF  THE  COMMISSIONER.  THE  COMMISSIONER  SHALL  ANNUALLY
 PROVIDE  TO  THE  COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE
 INFORMATION ABOUT THE PROGRAM INCLUDING, BUT NOT LIMITED TO, THE  NUMBER
 OF CERTIFIED EMPLOYERS THEN PARTICIPATING IN THE PROGRAM, UNIQUE IDENTI-
 FYING  INFORMATION  FOR  EACH CERTIFIED EMPLOYER, THE NUMBER OF ELIGIBLE
 INDIVIDUALS EMPLOYED BY  EACH  CERTIFIED  EMPLOYER,  UNIQUE  IDENTIFYING
 INFORMATION  FOR  EACH  ELIGIBLE  INDIVIDUAL  EMPLOYED  BY THE CERTIFIED
 EMPLOYERS, THE NUMBER OF HOURS WORKED BY SUCH ELIGIBLE INDIVIDUALS,  THE
 TOTAL DOLLAR AMOUNT OF CLAIMS FOR CREDIT, AND THE DOLLAR AMOUNT OF CRED-
 IT GRANTED TO EACH CERTIFIED EMPLOYER.
   (F)  CERTIFIED  EMPLOYER'S  TAXABLE  YEAR. IF THE CERTIFIED EMPLOYER'S
 TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM
 THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX  CREDIT  ON  THE  CALENDAR
 YEAR  RETURN  FOR WHICH THE CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE
 CERTIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE  EMPLOYER  SHALL
 BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CRED-

 A. 2009--B                         47
 
 IT  ON  THE RETURN FOR THE FISCAL YEAR THAT INCLUDES THE LAST DAY OF THE
 CALENDAR YEAR COVERED BY THE CERTIFICATE OF TAX CREDIT.
   (G)  CROSS  REFERENCES.  FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THE TAX LAW:
   1. ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53.
   2. ARTICLE 22: SECTION 606, SUBSECTION (JJJ).
   3. ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 53 to read as follows:
   53. RECOVERY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A
 CERTIFIED  EMPLOYER  PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
 THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE  COMMISSIONER  OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
 ON  SUCH  CERTIFICATE  OF  TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A
 PARTNERSHIP OR MEMBER OF A  LIMITED  LIABILITY  COMPANY  THAT  HAS  BEEN
 CERTIFIED  BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE
 ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF  THE
 MENTAL  HYGIENE  LAW  SHALL  BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
 EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS
 THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
 SECTION  TWO  HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF THE
 CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
 TAX  TO  THAT  AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE
 FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT
 TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE  PAID
 THEREON.
   (C)  TAX  RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH
 TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF  OF
 RECEIPT  OF  ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF
 THE OFFICE OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  PURSUANT  TO
 SECTION 32.38 OF THE MENTAL HYGIENE LAW.
   § 3. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606
 of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
 follows:
 
 (XLIV) RECOVERY TAX CREDIT UNDER     AMOUNT OF CREDIT UNDER
 SUBSECTION (JJJ)                     SUBDIVISION FIFTY-THREE OF
                                      SECTION TWO HUNDRED TEN-B
 
   § 4. Section 606 of the tax law is amended by adding a new  subsection
 (jjj) to read as follows:
   (JJJ) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS
 A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
 THAT  HAS  RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
 ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS  A  PARTNER  IN  A
 PARTNERSHIP,  MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN
 S CORPORATION THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE  OFFICE
 OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  AS A QUALIFIED EMPLOYER
 PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS

 A. 2009--B                         48
 
 PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED  LIABIL-
 ITY COMPANY OR S CORPORATION.
   (2)  OVERPAYMENT.  IF  THE  AMOUNT  OF  THE  CREDIT ALLOWED UNDER THIS
 SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXA-
 BLE YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT  OF  TAX  TO  BE
 CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, NO INTEREST  WILL
 BE PAID THEREON.
   (3)  TAX  RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH
 TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF  OF
 RECEIPT  OF  ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF
 THE OFFICE OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  PURSUANT  TO
 SECTION 32.38 OF THE MENTAL HYGIENE LAW.
   §  5.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT  IS
 A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
 THAT  HAS  RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
 ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS  A  PARTNER  IN  A
 PARTNERSHIP  OR  MEMBER  OF  A  LIMITED  LIABILITY COMPANY THAT HAS BEEN
 CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND  SUBSTANCE
 ABUSE  SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE
 MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA  SHARE  OF  THE  CREDIT
 EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  MINIMUM  TAX  FIXED  BY  PARAGRAPH FOUR OF SUBDIVISION (A) OF
 SECTION FIFTEEN HUNDRED TWO  OF  THIS  ARTICLE  OR  BY  SECTION  FIFTEEN
 HUNDRED  TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE
 AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
 REDUCES  THE  TAX  TO  SUCH  AMOUNT,  THEN ANY AMOUNT OF CREDIT THUS NOT
 DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS  AN  OVERPAYMENT  OF
 TAX  TO  BE  CREDITED  OR  REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
 SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
 PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED  TO  ATTACH
 TO  ITS  TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF
 RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE  COMMISSIONER  OF
 THE  OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES PURSUANT TO
 SECTION 32.38 OF THE MENTAL HYGIENE LAW.
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2020 and shall  apply  to  those
 eligible individuals hired after this act shall take effect.

                                  PART X
 
                           Intentionally Omitted
 
                                  PART Y
 
   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:

 A. 2009--B                         49
 
   § 44.  INVESTMENT  MANAGEMENT  SERVICES.  (A)  FOR  PURPOSES  OF  THIS
 SECTION,  THE  TERM "INVESTMENT MANAGEMENT SERVICES" TO A PARTNERSHIP, S
 CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING
 THE PURCHASE OR SALE OF  SECURITIES  AS  DEFINED  IN  PARAGRAPH  TWO  OF
 SUBSECTION  (C)  OF  SECTION  FOUR  HUNDRED SEVENTY-FIVE OF THE INTERNAL
 REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE  THEREOF,  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS
 DEFINED  IN  PARAGRAPH  TWO  OF  SUBSECTION  (E) OF SECTION FOUR HUNDRED
 SEVENTY-FIVE OF THE INTERNAL REVENUE  CODE,  OR  OPTIONS  OR  DERIVATIVE
 CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING,
 OR  DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT TO
 THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT
 OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI-
 VISION.
   (B) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS.  NOTWITHSTANDING
 ANY STATE OR FEDERAL LAW TO THE CONTRARY:
   (1)  WHERE  A  PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE
 PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER  FOR  PURPOSES
 OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE
 SHARE  OF  INCOME,  GAIN,  LOSS  AND DEDUCTION, INCLUDING ANY GUARANTEED
 PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE  WOULD
 HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES
 FOR  THE  PARTNERSHIP.  INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR
 PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS  A  BUSINESS  RECEIPT  FOR
 SERVICES  AND  FOR  PURPOSES  OF  ARTICLE  TWENTY-TWO OF THIS CHAPTER AS
 INCOME ATTRIBUTABLE TO A  TRADE,  BUSINESS,  PROFESSION  OR  OCCUPATION.
 PROVIDED,  HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE
 BEEN DETERMINED  IF  THE  PARTNER  PERFORMED  NO  INVESTMENT  MANAGEMENT
 SERVICES SHALL NOT BE LESS THAN ZERO.
   (2)  WHERE  A  SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR
 THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A  SHAREHOLDER
 FOR  PURPOSES  OF  THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE-
 HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT  IS  IN
 EXCESS  OF  THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE-
 HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT  SERVICES.  INSTEAD,  SUCH
 EXCESS  AMOUNT  SHALL  BE  TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF
 THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION  OR
 OCCUPATION.  PROVIDED,  HOWEVER,  THE  AMOUNT OF THE PRO RATA SHARE THAT
 WOULD HAVE BEEN DETERMINED IF  THE  SHAREHOLDER  PERFORMED  NO  SERVICES
 SHALL NOT BE LESS THAN ZERO.
   (3)  A  PARTNER  OR  SHAREHOLDER  WILL  NOT  BE DEEMED TO BE PROVIDING
 INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION  IF  AT  LEAST  EIGHTY
 PERCENT  OF  THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER-
 SHIP OR S CORPORATION DURING THE TAXABLE YEAR  CONSIST  OF  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT.
   (C)  IN  ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO
 ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY  CORPORATION,  PARTNER
 OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT
 TO  AN  ADDITIONAL  TAX,  REFERRED  TO AS THE "CARRIED INTEREST FAIRNESS
 FEE".  SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE  EQUAL  TO  SEVENTEEN
 PERCENT  OF  THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF
 THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE  OF  A  CORPORATION  OR
 SHAREHOLDER  OF  AN  S  CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT
 SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN  PERCENT  OF  THE  EXCESS
 AMOUNT  APPORTIONED  TO  THE  STATE  BY  APPLYING THE CORPORATION'S OR S
 CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO  HUNDRED

 A. 2009--B                         50
 
 TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID-
 ING  SUCH  INVESTMENT  MANAGEMENT  SERVICES,  SUCH FEE SHALL BE EQUAL TO
 SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES  AS
 DETERMINED  UNDER  SECTION  SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH
 CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN  ACCORDANCE  WITH
 ARTICLE  NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH
 TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS-
 LATIVE BILL  DRAFTING  COMMISSION  THAT  FEDERAL  LEGISLATION  HAS  BEEN
 ENACTED  THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR
 FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION.
   § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law,  as
 amended  by  section  5  of part T of chapter 59 of the laws of 2015, is
 amended to read as follows:
    (a) (i) The term "investment income" means income, including  capital
 gains  in  excess  of  capital  losses,  from investment capital, to the
 extent included in  computing  entire  net  income,  less,  (A)  in  the
 discretion  of  the  commissioner,  any interest deductions allowable in
 computing entire net income which are directly or  indirectly  attribut-
 able to investment capital or investment income, AND (B) ANY NET CAPITAL
 GAIN  INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED AS
 A BUSINESS RECEIPT PURSUANT  TO  SECTION  FORTY-FOUR  OF  THIS  CHAPTER;
 provided, however, that in no case shall investment income exceed entire
 net  income.  (ii) If the amount of interest deductions subtracted under
 subparagraph (i) of this paragraph exceeds investment income, the excess
 of such amount over investment income must be added back to  entire  net
 income.  (iii)  If  the  taxpayer's investment income determined without
 regard to the interest deductions subtracted under subparagraph  (i)  of
 this  paragraph  comprises  more  than  eight  percent of the taxpayer's
 entire net income, investment income determined without regard  to  such
 interest deductions cannot exceed eight percent of the taxpayer's entire
 net income.
   § 3. Subsection (b) of section 617 of the tax law, as amended by chap-
 ter 606 of the laws of 1984, is amended to read as follows:
   (b)  Character  of  items. [Each] EXCEPT AS PROVIDED IN SECTION FORTY-
 FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income,
 gain, loss, or deduction shall have the same character for a partner  or
 shareholder under this article as for federal income tax purposes. Where
 an  item  is not characterized for federal income tax purposes, it shall
 have the same character for a partner  or  shareholder  as  if  realized
 directly  from  the  source  from which realized by the partnership or S
 corporation or incurred in the same manner as incurred by  the  partner-
 ship or S corporation.
   § 4. Subsection (d) of section 631 of the tax law, as amended by chap-
 ter 28 of the laws of 1987, is amended to read as follows:
   (d)  Purchase  and sale for own account.-- A nonresident, other than a
 dealer holding property primarily for sale to customers in the  ordinary
 course  of  his  OR  HER  trade  or business OR A PARTNER OR SHAREHOLDER
 PERFORMING  INVESTMENT  MANAGEMENT  SERVICES  AS  DESCRIBED  IN  SECTION
 FORTY-FOUR  OF THIS CHAPTER, shall not be deemed to carry on a business,
 trade, profession or occupation in this state solely by  reason  of  the
 purchase  and sale of property or the purchase, sale or writing of stock
 option contracts, or both, for his own account.
   § 5. The opening paragraph of subsection (b) of section 632 of the tax
 law, as amended by chapter 28 of the laws of 1987, is amended to read as
 follows:

 A. 2009--B                         51
 
   [In] EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS  CHAP-
 TER,  IN  determining  the sources of a nonresident partner's income, no
 effect shall be given  to  a  provision  in  the  partnership  agreement
 which--
   §  6.  For  taxable  years  beginning  on or after January 1, 2019 and
 before January 1, 2020, (i) no addition to tax under subsection  (c)  of
 section  685  or  subsection (c) of section 1085 of the tax law shall be
 imposed with respect to any underpayment attributable to the  amendments
 made  by  this  act  of any estimated taxes that are required to be paid
 prior to the effective date of this  act,  provided  that  the  taxpayer
 timely  made  those payments; and (ii) the required installment of esti-
 mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of
 subsection (c) of section 685 of the tax law, and the exception to addi-
 tion for underpayment of estimated tax described in paragraph 1 or 2  of
 subsection  (d)  of  section  1085  of  the  tax law, in relation to the
 preceding year's return, shall be calculated as if the  amendments  made
 by this act had been in effect for that entire preceding year.
   §  7.  This  act  shall take effect upon the enactment into law by the
 states of Connecticut, New Jersey,  Massachusetts  and  Pennsylvania  of
 legislation  having  substantially  the  same effect as this act and the
 enactments by such states have taken effect  in  each  state  and  shall
 apply  for  taxable  years  beginning  on  or after such date; provided,
 however, if the states of Connecticut,  New  Jersey,  Massachusetts  and
 Pennsylvania  have already enacted such legislation, this act shall take
 effect immediately and shall apply for taxable  years  beginning  on  or
 after  January  1, 2019; provided further that the commissioner of taxa-
 tion and finance shall notify the legislative bill  drafting  commission
 upon the enactment of such legislation by the states of Connecticut, New
 Jersey, Massachusetts and Pennsylvania in order that such commission may
 maintain an accurate and timely effective data base of the official text
 of  the laws of the state of New York in furtherance of effectuating the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law.
 
                                  PART Z
 
   Section  1.  Paragraph  3 of subdivision (a) and paragraphs 2 and 5 of
 subdivision (c) of section 43 of the tax law, as added by section  7  of
 part  K  of  chapter  59  of  the  laws  of 2017, are amended to read as
 follows:
   (3) The total amount of credit allowable to a qualified life  sciences
 company,  or,  if  the  life  sciences  company  is properly included or
 required to be included in a combined report,  to  the  combined  group,
 taken  in  the aggregate, shall not exceed five hundred thousand dollars
 in any taxable year. If the [life sciences company] TAXPAYER is a  part-
 ner in a partnership THAT IS A LIFE SCIENCES COMPANY or A shareholder of
 a New York S corporation THAT IS A LIFE SCIENCES COMPANY, then the total
 amount of credit allowable shall be applied at the entity level, so that
 the total amount of credit allowable to all the partners or shareholders
 of  each  such  entity,  taken  in  the  aggregate, does not exceed five
 hundred thousand dollars in any taxable year.
   (2) "New business" means any business that qualifies as a new business
 under either paragraph (f) of subdivision one  of  section  two  hundred
 ten-B  or  paragraph  ten of subsection [one] (A) of section six hundred
 six of this chapter.

 A. 2009--B                         52

   (5) "Related person" means a related person as defined in subparagraph
 [(c)] (C) of paragraph three of subsection (b) of  section  465  of  the
 internal  revenue  code.  For  this  purpose,  a  "related person" shall
 include an entity that would have qualified as a "related person" if  it
 had not been dissolved, liquidated, merged with another entity or other-
 wise ceased to exist or operate.
   §  2.  Subdivision  5  of  section  209  of the tax law, as amended by
 section 5 of part A of chapter 59 of the laws of  2014,  is  amended  to
 read as follows:
   5.  For  any taxable year of a real estate investment trust as defined
 in section eight hundred fifty-six of the internal revenue code in which
 such trust is subject to federal income  taxation  under  section  eight
 hundred  fifty-seven  of such code, such trust shall be subject to a tax
 computed under either paragraph (a) or (d) of subdivision one of section
 two hundred ten of this chapter, whichever is greater, and shall not  be
 subject to any tax under article thirty-three of this chapter except for
 a  captive REIT required to file a combined return under subdivision (f)
 of section fifteen hundred fifteen of this chapter. In the case of  such
 a  real  estate investment trust, including a captive REIT as defined in
 section two of this chapter, the term "entire net  income"  means  "real
 estate  investment  trust taxable income" as defined in paragraph two of
 subdivision (b) of section eight hundred  fifty-seven  (as  modified  by
 section  eight  hundred  fifty-eight) of the internal revenue code [plus
 the amount taxable under paragraph three of subdivision (b)  of  section
 eight  hundred  fifty-seven  of such code], subject to the modifications
 required by subdivision nine of section two hundred eight of this  arti-
 cle.
   §  3. Paragraph (a) of subdivision 8 of section 211 of the tax law, as
 amended by chapter 760 of the laws  of  1992,  is  amended  to  read  as
 follows:
   (a)  Except  in  accordance with proper judicial order or as otherwise
 provided by law, it shall be unlawful  for  any  tax  commissioner,  any
 officer  or employee of the department [of taxation and finance], or any
 person who, pursuant to  this  section,  is  permitted  to  inspect  any
 report, or to whom any information contained in any report is furnished,
 or  any  person engaged or retained by such department on an independent
 contract basis, or any person who in any manner may acquire knowledge of
 the contents of a report filed pursuant to this article, to  divulge  or
 make  known  in  any  manner the amount of income or any particulars set
 forth or disclosed in  any  report  under  this  article.  The  officers
 charged  with  the  custody  of  such  reports  shall not be required to
 produce any of them or evidence of anything contained  in  them  in  any
 action  or proceeding in any court, except on behalf of the state or the
 commissioner in an action or proceeding under  the  provisions  of  this
 chapter or in any other action or proceeding involving the collection of
 a tax due under this chapter to which the state or the commissioner is a
 party or a claimant, or on behalf of any party to any action or proceed-
 ing under the provisions of this article when the reports or facts shown
 thereby  are  directly  involved in such action or proceeding, in any of
 which events the court may require the production of, and may  admit  in
 evidence,  so  much of said reports or of the facts shown thereby as are
 pertinent to the action or proceeding, and  no  more.  The  commissioner
 may,  nevertheless,  publish a copy or a summary of any determination or
 decision rendered after the formal hearing provided for in  section  one
 thousand  eighty-nine of this chapter. Nothing herein shall be construed
 to prohibit the delivery to a corporation or its duly authorized  repre-

 A. 2009--B                         53
 
 sentative  of  a  copy  of  any  report filed by it, nor to prohibit the
 publication of statistics so classified as to prevent the identification
 of particular reports and the  items  thereof;  or  the  publication  of
 delinquent  lists  showing the names of taxpayers who have failed to pay
 their taxes at the time and  in  the  manner  provided  by  section  two
 hundred  thirteen of this chapter together with any relevant information
 which in the opinion of the commissioner may assist in the collection of
 such delinquent taxes; or the inspection  by  the  attorney  general  or
 other  legal  representatives  of  the state of the report of any corpo-
 ration which shall bring action to set aside or  review  the  tax  based
 thereon, or against which an action or proceeding under this chapter has
 been  recommended  by  the  commissioner  of taxation and finance or the
 attorney general or has  been  instituted;  or  the  inspection  of  the
 reports of any corporation by the comptroller or duly designated officer
 or  employee  of the state department of audit and control, for purposes
 of the audit of a refund of any tax paid by such corporation under  this
 article[; and nothing in this chapter shall be construed to prohibit the
 publication of the issuer's allocation percentage of any corporation, as
 such  term  "issuer's  allocation percentage" is defined in subparagraph
 one of paragraph (b) of subdivision three of section two hundred ten  of
 this article].
   §  4.  Subdivision  (a) of section 213-b of the tax law, as amended by
 section 10 of part Q of chapter 60 of the laws of 2016,  is  amended  to
 read as follows:
   (a) First installments for certain taxpayers.--In privilege periods of
 twelve  months  ending  at  any  time  during the calendar year nineteen
 hundred seventy and  thereafter,  every  taxpayer  subject  to  the  tax
 imposed  by  section  two hundred nine of this chapter must pay with the
 report required to be filed for the preceding privilege period, or  with
 an  application  for  extension  of  the time for filing the report, for
 taxable years beginning before January first, two thousand sixteen,  and
 must pay on or before the fifteenth day of the third month of such priv-
 ilege  periods,  for  taxable years beginning on or after January first,
 two thousand sixteen, an amount equal to (i) twenty-five percent of  the
 second  preceding year's tax if the second preceding year's tax exceeded
 one thousand dollars but was equal to or less than one hundred  thousand
 dollars, or (ii) forty percent of the second preceding year's tax if the
 second  preceding  year's  tax exceeded one hundred thousand dollars. If
 the second preceding year's tax under section two hundred nine  of  this
 chapter exceeded one thousand dollars and the taxpayer is subject to the
 tax surcharge imposed by section two hundred nine-B of this chapter, the
 taxpayer  must  also  pay  with  the tax surcharge report required to be
 filed for the second preceding privilege period, or with an  application
 for  extension  of  the  time  for  filing the report, for taxable years
 beginning before January first, two thousand sixteen, and must pay on or
 before the fifteenth day of the third month of such  privilege  periods,
 for  taxable  years  beginning  on  or after January first, two thousand
 sixteen, an amount equal to (i) twenty-five percent of the tax surcharge
 imposed for the second preceding year if the second preceding year's tax
 was equal to or less than one hundred thousand dollars,  or  (ii)  forty
 percent  of  the  tax surcharge imposed for the second preceding year if
 the second preceding year's tax exceeded one hundred  thousand  dollars.
 Provided,  however, that every taxpayer that is [an] A NEW YORK S corpo-
 ration must pay with the report required to be filed for  the  preceding
 privilege  period,  or with an application for extension of the time for
 filing the report, an amount equal to (i)  twenty-five  percent  of  the

 A. 2009--B                         54
 
 preceding  year's  tax if the preceding year's tax exceeded one thousand
 dollars but was equal to or less than one hundred thousand  dollars,  or
 (ii)  forty  percent of the preceding year's tax if the preceding year's
 tax  exceeded one hundred thousand dollars. [If the preceding year's tax
 under section two hundred nine of this  article  exceeded  one  thousand
 dollars and such taxpayer that is an S corporation is subject to the tax
 surcharge  imposed  by  section  two hundred nine-B of this article, the
 taxpayer must also pay with the tax  surcharge  report  required  to  be
 filed  for  the  preceding  privilege period, or with an application for
 extension of the time for filing the report,  an  amount  equal  to  (i)
 twenty-five  percent of the tax surcharge imposed for the preceding year
 if the preceding year's tax was equal equal to or less than one  hundred
 thousand dollars, or (ii) forty percent of the tax surcharge imposed for
 the  preceding  year  if  the  preceding year's tax exceeded one hundred
 thousand dollars.]
   § 5. Subdivision (e) of section 213-b of the tax law,  as  amended  by
 chapter  166  of the laws of 1991, the subdivision heading as amended by
 section 10-b of part Q of chapter 60 of the laws of 2016, is amended  to
 read as follows:
   (e)  Interest  on  certain  installments based on the second preceding
 year's tax.--Notwithstanding the  provisions  of  section  one  thousand
 eighty-eight  of this chapter or of section sixteen of the state finance
 law, if an amount paid pursuant to subdivision (a) exceeds  the  tax  or
 tax surcharge, respectively, shown on the report required to be filed by
 the  taxpayer for the privilege period during which the amount was paid,
 interest shall be allowed and paid on the amount by which the amount  so
 paid  pursuant to such subdivision exceeds such tax or tax surcharge. In
 the case of amounts so paid pursuant to subdivision (a),  such  interest
 shall be allowed and paid at the overpayment rate set by the commission-
 er  of  taxation and finance pursuant to section one thousand ninety-six
 of this chapter, or if no rate is set, at the rate of six per centum per
 annum from the date of payment of the amount so paid  pursuant  to  such
 subdivision  to  the fifteenth day of the [third] FOURTH month following
 the close of the taxable year, provided, however, that no interest shall
 be allowed or paid under this subdivision if the amount thereof is  less
 than  one dollar or if such interest becomes payable solely because of a
 carryback of a net operating loss in a subsequent privilege period.
   § 6. Subdivision (a) of section 1503 of the tax  law,  as  amended  by
 chapter 817 of the laws of 1987, is amended to read as follows:
   (a)  The entire net income of a taxpayer shall be its total net income
 from all sources which shall be presumably the same as the  life  insur-
 ance company taxable income (which shall include, in the case of a stock
 life  insurance  company [which] THAT has A BALANCE, AS DETERMINED AS OF
 THE CLOSE OF SUCH COMPANY'S LAST TAXABLE YEAR BEGINNING  BEFORE  JANUARY
 FIRST,  TWO  THOUSAND  EIGHTEEN,  IN  an  existing policyholders surplus
 account, AS SUCH TERM IS DEFINED IN SECTION 815 OF THE INTERNAL  REVENUE
 CODE  AS  SUCH  SECTION WAS IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE
 JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount of [direct and indirect
 distributions during the taxable year to shareholders from such account]
 ONE-EIGHTH OF SUCH BALANCE), taxable income of a partnership or  taxable
 income,  but not alternative minimum taxable income, as the case may be,
 which the taxpayer is required to report to the United  States  treasury
 department, for the taxable year or, in the case of a corporation exempt
 from  federal income tax (other than the tax on unrelated business taxa-
 ble income imposed under section 511 of the internal revenue  code)  but
 not  exempt  from  tax  under  section  fifteen hundred one, the taxable

 A. 2009--B                         55
 
 income which such taxpayer would have been required to  report  but  for
 such exemption, except as hereinafter provided.
   § 7. Intentionally omitted.
   § 8. Section 2 of chapter 369 of the laws of 2018 amending the tax law
 relating  to unrelated business taxable income of a taxpayer, is amended
 to read as follows:
   § 2. This act shall take effect immediately and shall apply to  [taxa-
 ble  years  beginning]  AMOUNTS PAID OR INCURRED on and after January 1,
 2018.
   § 9. Paragraph (b) of subdivision 8 of section 11-602 of the  adminis-
 trative code of the city of New York is amended by adding a new subpara-
 graph 20 to read as follows:
   (20)  THE AMOUNT OF ANY FEDERAL DEDUCTION THAT WOULD HAVE BEEN ALLOWED
 PURSUANT TO SECTION 250(A)(1)(A) OF THE INTERNAL  REVENUE  CODE  IF  THE
 TAXPAYER  HAD  NOT MADE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER ONE OF
 THE INTERNAL REVENUE CODE.
   § 10. Clause (i) of subparagraph 1 of paragraph (b) of  subdivision  3
 of section 11-604 of the administrative code of the city of New York, as
 amended  by  chapter  241  of  the  laws  of 1989, is amended to read as
 follows:
   (i) In the case of an issuer or obligor  subject  to  tax  under  this
 subchapter,  SUBCHAPTER  THREE-A  or subchapter four of this chapter, or
 subject to tax as a utility corporation under  chapter  eleven  of  this
 title, the issuer's allocation percentage shall be the percentage of the
 appropriate  measure  (as  defined  hereinafter) which is required to be
 allocated within the city on the report or reports, if any, required  of
 the  issuer  or  obligor  under  this  title for the preceding year. The
 appropriate measure referred to in the preceding sentence shall  be:  in
 the  case of an issuer or obligor subject to this subchapter OR SUBCHAP-
 TER THREE-A, entire capital; in the case of an issuer or obligor subject
 to subchapter four of this chapter, issued capital stock; in the case of
 an issuer or obligor subject to chapter eleven of this title as a utili-
 ty corporation, gross income.
   § 11. This act shall take effect immediately, provided, however, that:
   (i) section one of this act shall be deemed to have been in full force
 and effect on and after the effective date of part K of  chapter  59  of
 the laws of 2017;
   (ii)  sections two and six of this act shall be deemed to have been in
 full force and effect on and after the effective  date  of  part  KK  of
 chapter  59  of the laws of 2018; provided, however, that section six of
 this act shall apply to taxable years beginning on or after  January  1,
 2018 through taxable years beginning on or before January 1, 2025;
   (iii)  section  three of this act shall be deemed to have been in full
 force and effect on and after the effective date of part A of chapter 59
 of the laws of 2014;
   (iv) sections four and five of this act shall be deemed to  have  been
 in  full  force  and effect on and after the effective date of part Q of
 chapter 60 of the laws of 2016;
   (v) section eight of this act shall be deemed to  have  been  in  full
 force  and  effect on and after the effective date of chapter 369 of the
 laws of 2018; and
   (vi) section nine of this act shall apply to taxable  years  beginning
 on and after January 1, 2018.
 
                                  PART AA

 A. 2009--B                         56
 
                           Intentionally Omitted
 
                                  PART BB
 
                           Intentionally Omitted
 
                                  PART CC
 
                           Intentionally Omitted
 
                                  PART DD
 
   Section  1.  This  Part  enacts  into  law legislation relating to the
 office of gaming inspector general, the thoroughbred breeding and devel-
 opment fund, the Harry M. Zweig memorial fund and prize payment  amounts
 and revenue distributions of lottery game sales. Each component is whol-
 ly  contained  within  a Subpart identified as Subparts A through D. The
 effective date for  each  particular  provision  contained  within  such
 Subpart  is set forth in the last section of such Subpart. Any provision
 in any section contained within a Subpart, including the effective  date
 of the Subpart, which makes a reference to a section "of this act", when
 used  in  connection  with that particular component, shall be deemed to
 mean and refer to the corresponding section of the Subpart in  which  it
 is  found.  Section  three of this Part sets forth the general effective
 date of this Part.
 
                                 SUBPART A
 
   Section 1. Sections 1368, 1369, 1370, and 1371 of the racing, pari-mu-
 tuel wagering and breeding law are renumbered sections  130,  131,  132,
 and 133.
   §  2.  Title  9  of article 13 of the racing, pari-mutuel wagering and
 breeding law is REPEALED.
   § 3. Section 130 of the racing, pari-mutuel wagering and breeding law,
 as added by chapter 174 of the laws of 2013 and as renumbered by section
 one of this act, is amended to read as follows:
   § 130. Establishment of the office of  gaming  inspector  general.  1.
 There  is  hereby  created  within  the  commission the office of gaming
 inspector general. The head of the office shall be the gaming  inspector
 general  who  shall  be appointed by the governor by and with the advice
 and consent of the senate. The GAMING inspector general shall  serve  at
 the  pleasure of the governor. The GAMING inspector general shall report
 directly to the governor.  The  person  appointed  as  GAMING  inspector
 general shall, upon his or her appointment, have not less than ten years
 professional  experience in law, investigation, or auditing.  The GAMING
 inspector general shall be compensated within the limits of funds avail-
 able therefor, provided, however, such salary shall be no less than  the
 salaries  of  certain  state officers holding the positions indicated in
 paragraph (a) of subdivision one of section one  hundred  sixty-nine  of
 the executive law.
   2.  THE  GAMING  INSPECTOR GENERAL MAY NOT BE EMPLOYED WITH THE GAMING
 COMMISSION DURING THEIR EMPLOYMENT WITH THE OFFICE OR WITHIN  TWO  YEARS
 AFTER TERMINATING EMPLOYMENT WITH THE OFFICE.
   §  3-a. Subdivision 1 of section 131 of the racing, pari-mutuel wager-
 ing and breeding law, such section as renumbered by section one of  this
 act, is renumbered subdivision 1-a.

 A. 2009--B                         57
 
   §  4.  The section heading, opening paragraph and subdivisions 6 and 7
 of section 131 of the racing, pari-mutuel wagering and breeding law,  as
 added  by chapter 174 of the laws of 2013 and such section as renumbered
 by section one of this act, are amended and two new subdivisions 1 and 8
 are added to read as follows:
   [State  gaming]  GAMING  inspector  general; functions and duties. The
 [state] gaming inspector general shall have  the  following  duties  and
 responsibilities:
   1. APPOINT SUCH DEPUTIES, DIRECTORS, ASSISTANTS AND OTHER OFFICERS AND
 EMPLOYEES  AS  MAY BE NEEDED FOR THE PERFORMANCE OF THEIR DUTIES AND MAY
 PRESCRIBE THEIR POWERS AND FIX THEIR  COMPENSATION  WITHIN  THE  AMOUNTS
 AVAILABLE THEREFOR;
   6.  recommend  remedial  action  to  prevent  or eliminate corruption,
 fraud, criminal activity, conflicts of interest or abuse in the  commis-
 sion; [and]
   7.  establish  programs for training commission officers and employees
 [regarding] IN REGARD TO the prevention and elimination  of  corruption,
 fraud,  criminal activity, conflicts of interest or abuse in the commis-
 sion[.]; AND
   8. MAKE AN ANNUAL REPORT TO THE  GOVERNOR,  THE  COMPTROLLER  AND  THE
 LEGISLATURE  CONCERNING  ITS WORK DURING THE PRECEDING YEAR, AND TO MAKE
 SUCH FURTHER INTERIM REPORTS TO THE GOVERNOR,  THE  COMPTROLLER  OR  THE
 LEGISLATURE AS THEY SHALL DEEM ADVISABLE OR REQUIRE.
   §  5.  The opening paragraph of section 132 of the racing, pari-mutuel
 wagering and breeding law, as added by chapter 174 of the laws  of  2013
 and such section as renumbered by section one of this act, is amended to
 read as follows:
   The [state] gaming inspector general shall have the power to:
   § 6. Section 133 of the racing, pari-mutuel wagering and breeding law,
 as added by chapter 174 of the laws of 2013 and as renumbered by section
 one of this act, is amended to read as follows:
   § 133. Responsibilities of the commission and its officers and employ-
 ees.  1.  Every  commission officer or employee shall report promptly to
 the  [state]  gaming  inspector  general  any   information   concerning
 corruption,  fraud, criminal activity, conflicts of interest or abuse by
 another state officer or employee relating  to  his  or  her  office  or
 employment,  or by a person having business dealings with the commission
 relating to those dealings.  The  knowing  failure  of  any  officer  or
 employee  to so report shall be cause for removal from office or employ-
 ment or other appropriate penalty under this  article.  Any  officer  or
 employee  who  acts  pursuant  to  this  subdivision by reporting to the
 [state] gaming inspector general or other  appropriate  law  enforcement
 official  improper  governmental  action  as defined in section seventy-
 five-b of the civil service law  shall  not  be  subject  to  dismissal,
 discipline or other adverse personnel action.
   2.  The  commission chair shall advise the governor within ninety days
 of the issuance of a report by the [state] gaming inspector  general  as
 to  the remedial action that the commission has taken in response to any
 recommendation for such action contained in such report.
   § 7. This act shall take effect immediately.
 
                                 SUBPART B
 
                           Intentionally Omitted
 
                                  SUBPART C

 A. 2009--B                         58
 
                           Intentionally Omitted
 
                                  SUBPART D
 
                           Intentionally Omitted
 
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or subpart of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or  subpart  thereof  directly involved in the controversy in which such
 judgment shall have been rendered. It  is  hereby  declared  to  be  the
 intent  of the legislature that this act would have been enacted even if
 such invalid provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the applicable effective date of Subparts A through D of this Part shall
 be as specifically set forth in the last section of such Subpart.
 
                                  PART EE
 
   Section  1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision
 b of section 1612 of the tax law, subparagraph (ii) as amended by  chap-
 ter  174 of the laws of 2013, the opening paragraph of subparagraph (ii)
 as separately amended by section 30 of chapter 174 of the laws of  2013,
 clause  (F)  of  subparagraph (ii) as amended by section 1 of part PP of
 chapter 59 of the laws of 2017, clause (G) as amended by  section  2  of
 part  HH  and clause (G-2) of subparagraph (ii) as added by section 1 of
 part DD of chapter 60 of the laws of 2016,  clauses  (G-1)  and  (I)  of
 subparagraph  (ii) as amended by chapter 175 of the laws of 2013, clause
 (H) of subparagraph (ii) as amended by section 1 of part TT  of  chapter
 59  of  the  laws  of  2018, clause (J) of subparagraph (ii) as added by
 section 2 of part I of chapter 61 of the laws of 2017  and  subparagraph
 (iii) as separately amended by chapters 174 and 175 of the laws of 2013,
 are amended to read as follows:
   (ii)  [less a vendor's fee the amount of which is to be paid for serv-
 ing as a lottery agent to the track operator of a vendor  track  or  the
 operator of a resort facility or the operator of any other video lottery
 gaming  facility authorized pursuant to section one thousand six hundred
 seventeen a of this article:
   (A) having fewer than one thousand one hundred video gaming  machines,
 at  a  rate  of  thirty-five percent for the first fifty million dollars
 annually, twenty-eight percent for  the  next  hundred  million  dollars
 annually,  and  twenty-five  percent  thereafter  of  the  total revenue
 wagered at the vendor track after payout for  prizes  pursuant  to  this
 chapter;
   (B)  having one thousand one hundred or more video gaming machines, at
 a rate of thirty-one percent of the total revenue wagered at the  vendor
 track  after payout for prizes pursuant to this chapter, except for such
 facility located in the county of Westchester, in which  case  the  rate
 shall be thirty percent until March thirty-first, two thousand twelve.
   Notwithstanding  the  foregoing, not later than April first, two thou-
 sand twelve, the vendor fee shall become thirty-one percent  and  remain
 at  that  level  thereafter; and except for Aqueduct racetrack, in which
 case the vendor fee shall be thirty-eight percent of the  total  revenue

 A. 2009--B                         59

 wagered  at  the  vendor  track after payout for prizes pursuant to this
 chapter;
   (C) notwithstanding clauses (A) and (B) of this subparagraph, when the
 vendor  track  is  located in an area with a population of less than one
 million within the forty mile radius around such track,  at  a  rate  of
 thirty-nine  percent for the first fifty million dollars annually, twen-
 ty-eight percent for the next  hundred  million  dollars  annually,  and
 twenty-five  percent  thereafter  of  the  total  revenue wagered at the
 vendor track after payout for prizes pursuant to this chapter;
   (D) notwithstanding clauses (A), (B) and  (C)  of  this  subparagraph,
 when the vendor track is located within fifteen miles of a Native Ameri-
 can  class  III  gaming  facility  at a rate of forty-one percent of the
 total revenue wagered at the vendor track after payout for prizes pursu-
 ant to this chapter;
   (E) notwithstanding clauses (A), (B), (C) and  (D)  of  this  subpara-
 graph,  when a Native American class III gaming facility is established,
 after the effective date of this subparagraph, within fifteen  miles  of
 the  vendor  track,  at a rate of forty-one percent of the total revenue
 wagered after payout for prizes pursuant to this chapter;
   (E-1) for purposes of this subdivision, the term  "class  III  gaming"
 shall have the meaning defined in 25 U.S.C. § 2703(8).
   (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
 agraph,  when  a  vendor track, is located in Sullivan county and within
 sixty miles from any gaming facility in a contiguous state  such  vendor
 fee  shall,  for a period of ten years commencing April first, two thou-
 sand eight, be at a rate of  forty-one  percent  of  the  total  revenue
 wagered  at  the  vendor  track after payout for prizes pursuant to this
 chapter, after which time such rate shall be as for all tracks in clause
 (C) of this subparagraph.
   (G)] LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING
 AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA-
 TOR OF ANY OTHER VIDEO LOTTERY GAMING FACILITY  AUTHORIZED  PURSUANT  TO
 SECTION  SIXTEEN  HUNDRED SEVENTEEN-A OF THIS ARTICLE. THE AMOUNT OF THE
 VENDOR'S FEE SHALL BE CALCULATED AS FOLLOWS:
   (A) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  ONE  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (B) WHEN A VENDOR TRACK IS LOCATED  WITHIN  ZONE  TWO  AS  DEFINED  BY
 SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING LAW, THE RATE OF THE TOTAL REVENUE WAGERED AT THE VENDOR  TRACK
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE AS FOLLOWS:
   (1)  FORTY-THREE  AND ONE-HALF PERCENT FOR A VENDOR TRACK LOCATED MORE
 THAN FIFTEEN MILES BUT LESS THAN FIFTY MILES FROM A  DESTINATION  RESORT
 GAMING  FACILITY  AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF THE RACING,
 PARI-MUTUEL WAGERING AND BREEDING LAW;
   (2) FORTY-NINE PERCENT FOR A VENDOR TACK LOCATED WITHIN FIFTEEN  MILES
 OF  A  DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE
 THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW;
   (3) FIFTY-ONE PERCENT FOR VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES
 BUT LESS THAN FIFTY MILES FROM A NATIVE AMERICAN CLASS III GAMING FACIL-
 ITY AS DEFINED IN 25 U.S.C. §2703(8);
   (4) FIFTY-SIX PERCENT FOR A VENDOR TRACK LOCATED WITHIN FIFTEEN  MILES
 OF  A  NATIVE  AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C
 §2703(8);

 A. 2009--B                         60

   (C) WHEN A VIDEO LOTTERY FACILITY IS LOCATED AT AQUEDUCT RACETRACK, AT
 A RATE OF FIFTY PERCENT OF  THE  TOTAL  REVENUE  WAGERED  AT  THE  VIDEO
 LOTTERY  GAMING  FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAP-
 TER;
   (D)  WHEN  A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU
 OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED  PURSU-
 ANT  TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING LAW, AT A RATE OF  FORTY-FIVE  PERCENT  OF  THE  TOTAL  REVENUE
 WAGERED  AT  THE  VIDEO  LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER.
   (III) (A) Notwithstanding any provision to the contrary, when a vendor
 track is located within regions one, two, or five  of  development  zone
 two as defined by section thirteen hundred ten of the racing, pari-mutu-
 el  wagering  and breeding law, such vendor track shall receive an addi-
 tional commission at a rate equal to the percentage of  revenue  wagered
 at  the  vendor  track after payout for prizes pursuant to this chapter,
 which percentage shall be one hundred, less the sum of  the  percentages
 of  net  revenue  wagered at the vendor track retained by the commission
 for  operation,  administration,  and  procurement  purposes;  and   the
 vendor's  fee,  marketing allowance and capital award paid to the vendor
 track pursuant to this chapter; and the effective tax rate paid  on  all
 gross  gaming  revenue  paid by a gaming facility within the same region
 pursuant to section thirteen hundred fifty-one of the racing, pari-mutu-
 el wagering and breeding law, provided, however, such additional commis-
 sion shall be applied to revenue  wagered  at  the  vendor  track  after
 payout  for  prizes  only  while a gaming facility in the same region is
 open and operational pursuant to an operation certificate issued  pursu-
 ant  to  section  thirteen hundred thirty-one of the racing, pari-mutuel
 wagering and breeding law. The additional commission set forth  in  this
 clause  shall  be  paid  to the vendor track within sixty days after the
 conclusion of the state fiscal year based on the  calculated  percentage
 during the previous fiscal year.
   [(G-1) Notwithstanding clause (A) and (B) of this subparagraph, when a
 video  lottery gaming facility is located in either the county of Nassau
 or Suffolk and is operated by  a  corporation  established  pursuant  to
 section  five hundred two of the racing, pari-mutuel wagering and breed-
 ing law at a rate of thirty-five percent of the total revenue wagered at
 the vendor after payout for prizes pursuant to this chapter;
   (G-2)] (B) Notwithstanding any  provision  to  the  contrary,  when  a
 vendor  track  is  located  within region six of development zone two as
 defined by section thirteen  hundred  ten  of  the  racing,  pari-mutuel
 wagering  and  breeding  law  and is located within Ontario county, such
 vendor track shall receive an additional commission at a rate  equal  to
 the  percentage  of revenue wagered at the vendor track after payout for
 prizes pursuant to this chapter, which percentage shall be one  hundred,
 less  the  sum  of  the percentages of net revenue wagered at the vendor
 track retained by the  commission  for  operation,  administration,  and
 procurement  purposes;  and  the  vendor's  fee, marketing allowance and
 capital award paid to the vendor track pursuant to this chapter; and the
 effective tax rate paid on all gross gaming revenue  paid  by  a  gaming
 facility  within  Seneca  or Wayne counties pursuant to section thirteen
 hundred fifty-one of the racing, pari-mutuel wagering and breeding  law,
 provided, however, such additional commission shall be applied to reven-
 ue  wagered  at  the  vendor  track after payout for prizes only while a
 gaming facility in Seneca or Wayne  counties  is  open  and  operational
 pursuant to an operation certificate issued pursuant to section thirteen

 A. 2009--B                         61
 
 hundred thirty-one of the racing, pari-mutuel wagering and breeding law.
 The  additional commission set forth in this clause shall be paid to the
 vendor track within sixty days after the conclusion of the state  fiscal
 year based on the calculated percentage during the previous fiscal year.
   [(H)  notwithstanding  clauses (A), (B), (C), (D), (E), (F) and (G) of
 this subparagraph, the track operator of a vendor track and in the  case
 of  Aqueduct,  the  video  lottery  terminal facility operator, shall be
 eligible for a vendor's capital award of up to four percent of the total
 revenue wagered at the vendor track after payout for prizes pursuant  to
 this  chapter,  which  shall  be  used  exclusively  for capital project
 investments to improve the facilities of the vendor track which  promote
 or  encourage  increased attendance at the video lottery gaming facility
 including, but not limited to hotels, other lodging  facilities,  enter-
 tainment   facilities,  retail  facilities,  dining  facilities,  events
 arenas, parking garages and other  improvements  that  enhance  facility
 amenities;  provided  that such capital investments shall be approved by
 the division, in consultation with the gaming commission, and that  such
 vendor  track  demonstrates that such capital expenditures will increase
 patronage at such vendor track's facilities and increase the  amount  of
 revenue generated to support state education programs. The annual amount
 of such vendor's capital awards that a vendor track shall be eligible to
 receive  shall  be limited to two million five hundred thousand dollars,
 except for Aqueduct racetrack, for which there shall be no annual limit,
 provided, however, that any such capital award for  the  Aqueduct  video
 lottery  terminal  facility  operator  shall be one percent of the total
 revenue wagered at the video lottery terminal facility after payout  for
 prizes  pursuant to this chapter until the earlier of the designation of
 one thousand video lottery devices as hosted pursuant to paragraph  four
 of  subdivision a of section sixteen hundred seventeen-a of this chapter
 or April first, two thousand nineteen and shall then be four percent  of
 the  total  revenue wagered at the video lottery terminal facility after
 payout for prizes pursuant to this chapter, provided, further, that such
 capital award shall only be provided pursuant to an agreement  with  the
 operator  to  construct an expansion of the facility, hotel, and conven-
 tion and exhibition space requiring  a  minimum  capital  investment  of
 three  hundred  million  dollars. Except for tracks having less than one
 thousand nine hundred video gaming machines, and  except  for  a  vendor
 track  located west of State Route 14 from Sodus Point to the Pennsylva-
 nia border within New York, and except for Aqueduct racetrack each track
 operator shall be required to co-invest an amount of capital expenditure
 equal to its cumulative vendor's  capital  award.  For  all  tracks  the
 amount  of  any  vendor's  capital award that is not used during any one
 year period may be carried over  into  subsequent  years  ending  before
 April first, two thousand nineteen. Any amount attributable to a capital
 expenditure  approved  prior  to  April first, two thousand nineteen and
 completed before April first, two thousand twenty-one; or approved prior
 to April first, two thousand twenty-three  and  completed  before  April
 first, two thousand twenty-five for a vendor track located west of State
 Route  14  from  Sodus Point to the Pennsylvania border within New York,
 shall be eligible to receive the vendor's capital award.  In  the  event
 that  a  vendor  track's  capital  expenditures,  approved by the gaming
 commission prior to April first, two  thousand  nineteen  and  completed
 prior to April first, two thousand twenty-one, exceed the vendor track's
 cumulative capital award during the five year period ending April first,
 two  thousand nineteen, the vendor shall continue to receive the capital
 award after April first, two thousand nineteen until such approved capi-

 A. 2009--B                         62

 tal expenditures are paid to the vendor track subject  to  any  required
 co-investment. In no event shall any vendor track that receives a vendor
 fee pursuant to clause (F) or (G) of this subparagraph be eligible for a
 vendor's  capital  award  under  this  section. Any operator of a vendor
 track which has received a vendor's capital award,  choosing  to  divest
 the capital improvement toward which the award was applied, prior to the
 full depreciation of the capital improvement in accordance with general-
 ly  accepted accounting principles, shall reimburse the state in amounts
 equal to the total of any such awards. Any capital  award  not  approved
 for  a  capital  expenditure at a video lottery gaming facility by April
 first, two thousand nineteen shall be deposited into the  state  lottery
 fund for education aid; and
   (I)  Notwithstanding  any  provision of law to the contrary, free play
 allowance credits authorized by the division pursuant to  subdivision  f
 of  section  sixteen  hundred  seventeen-a  of this article shall not be
 included in the calculation of the total amount wagered on video lottery
 games, the total amount wagered after payout of prizes, the vendor  fees
 payable  to  the operators of video lottery facilities, vendor's capital
 awards, fees payable to the division's video  lottery  gaming  equipment
 contractors, or racing support payments.
   (J)  Notwithstanding  clause  (H)  of  this  subparagraph,  the gaming
 commission shall be able to authorize  a  vendor  track  located  within
 Oneida  county,  within  fifteen  miles  of  a Native American class III
 gaming facility, and who has maintained at least ninety percent of full-
 time equivalent employees as they employed  in  the  year  two  thousand
 sixteen,  to use a portion of their vendor's capital award of up to four
 percent of the total revenue wagered at the vendor  track  after  payout
 for prizes pursuant to this chapter each year, for operations.
   (iii) less an additional vendor's marketing allowance at a rate of ten
 percent  for  the  first  one hundred million dollars annually and eight
 percent thereafter of the total revenue  wagered  at  the  vendor  track
 after payout for prizes to be used by the vendor track for the marketing
 and  promotion  and  associated  costs of its video lottery gaming oper-
 ations and pari-mutuel horse racing operations,  as  long  as  any  such
 costs associated with pari-mutuel horse racing operations simultaneously
 encourage  increased  attendance  at  such vendor's video lottery gaming
 facilities, consistent with the customary manner of marketing comparable
 operations in the industry and subject to the overall supervision of the
 division; provided, however,  that  the  additional  vendor's  marketing
 allowance shall not exceed eight percent in any year for any operator of
 a  racetrack  located  in the county of Westchester or Queens; provided,
 however, a vendor track that receives a vendor fee  pursuant  to  clause
 (G)  of  subparagraph (ii) of this paragraph shall not receive the addi-
 tional vendor's marketing allowance; provided,  however,  except  for  a
 vendor  track  located  west  of  State Route 14 from Sodus Point to the
 Pennsylvania border within New York shall continue to receive a  market-
 ing  allowance  of  ten  percent  on total revenue wagered at the vendor
 track after payout for prizes in excess of one hundred  million  dollars
 annually provided, however, a vendor that receives a vendor fee pursuant
 to  clause (G-1) of subparagraph (ii) of this paragraph shall receive an
 additional marketing allowance at a rate of ten  percent  of  the  total
 revenue  wagered  at  the video lottery gaming facility after payout for
 prizes. In establishing the vendor fee,]
   § 2. Subdivision b of section 1612 of the tax law is amended by adding
 three new paragraphs 1-a, 1-b, and 1-c to read as follows:

 A. 2009--B                         63

   1-A. (I) NOTWITHSTANDING ANY PROVISION OF LAW  TO  THE  CONTRARY,  ANY
 OPERATORS  OF A VENDOR TRACK OR THE OPERATORS OF ANY OTHER VIDEO LOTTERY
 GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR-
 TY-FIRST, TWO THOUSAND EIGHTEEN SHALL DEPOSIT FROM THEIR VENDOR FEE INTO
 A  SEGREGATED  ACCOUNT  AN  AMOUNT  EQUAL  TO  FOUR PERCENT OF THE FIRST
 SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF  REVENUE  WAGERED  AT
 THE  VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE
 USED EXCLUSIVELY FOR CAPITAL INVESTMENTS,  EXCEPT  FOR  AQUEDUCT,  WHICH
 SHALL  DEPOSIT  INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO ONE PERCENT
 OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER UNTIL THE EARLIER OF THE DESIGNATION
 OF ONE THOUSAND VIDEO LOTTERY DEVICES AS HOSTED  PURSUANT  TO  PARAGRAPH
 FOUR  OF  SUBDIVISION  A  OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS
 ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, WHEN AT  SUCH  TIME  FOUR
 PERCENT  OF  ALL  REVENUE  WAGERED  AT THE VIDEO LOTTERY GAMING FACILITY
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO
 A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS.
   (II) VENDOR TRACKS  AND  VIDEO  LOTTERY  GAMING  FACILITIES  SHALL  BE
 PERMITTED  TO  WITHDRAW FUNDS FOR PROJECTS APPROVED BY THE COMMISSION TO
 IMPROVE THE FACILITIES OF THE  VENDOR  TRACK  OR  VIDEO  LOTTERY  GAMING
 FACILITY  WHICH  ENHANCE  OR  MAINTAIN THE VIDEO LOTTERY GAMING FACILITY
 INCLUDING, BUT NOT LIMITED TO HOTELS, OTHER LODGING  FACILITIES,  ENTER-
 TAINMENT   FACILITIES,  RETAIL  FACILITIES,  DINING  FACILITIES,  EVENTS
 ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS AND  AMENITIES  CUSTOMARY
 TO  A  GAMING  FACILITY,  PROVIDED, HOWEVER, THE VENDOR TRACKS AND VIDEO
 LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR UNRE-
 IMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE  EFFECTIVE  DATE  OF  THIS
 SUBPARAGRAPH.
   (III) ANY PROCEEDS FROM THE DIVESTITURE OF ANY ASSETS ACQUIRED THROUGH
 THESE  CAPITAL  FUNDS  OR ANY PRIOR CAPITAL AWARD MUST BE DEPOSITED INTO
 THIS SEGREGATED ACCOUNT, PROVIDED THAT IF  THE  VENDOR  TRACK  OR  VIDEO
 LOTTERY  GAMING FACILITY CEASES USE OF SUCH ASSET FOR GAMING PURPOSES OR
 TRANSFERS THE ASSET TO A RELATED  PARTY,  SUCH  VENDOR  TRACK  OR  VIDEO
 LOTTERY GAMING FACILITY SHALL DEPOSIT AN AMOUNT EQUAL TO THE FAIR MARKET
 VALUE OF THAT ASSET INTO THE ACCOUNT.
   (IV)  IN  THE  EVENT  A  VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY
 CEASES GAMING OPERATIONS, ANY BALANCE  IN  THE  ACCOUNT  ALONG  WITH  AN
 AMOUNT  EQUAL TO THE VALUE OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS
 FUND OR PRIOR CAPITAL AWARDS SHALL BE RETURNED TO THE STATE FOR  DEPOSIT
 INTO  THE  STATE  LOTTERY  FUND  FOR EDUCATION AID, EXCEPT FOR AQUEDUCT,
 WHICH SHALL RETURN TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY  FUND
 FOR  EDUCATION  AID ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A
 PROJECT PURSUANT TO AN AGREEMENT  WITH  THE  OPERATOR  TO  CONSTRUCT  AN
 EXPANSION  OF  THE  FACILITY, HOTEL, AND CONVENTION AND EXHIBITION SPACE
 REQUIRING A MINIMUM CAPITAL INVESTMENT OF THREE HUNDRED MILLION  DOLLARS
 AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT.
   (V)  THE  COMPTROLLER  OR  HIS  LEGALLY  AUTHORIZED  REPRESENTATIVE IS
 AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT  OF  THESE  SEGRE-
 GATED CAPITAL ACCOUNTS.
   (VI) NOTWITHSTANDING  SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH,
 A  VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP TO TWO MILLION
 DOLLARS FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF  COURSE
 AT THE VENDOR TRACK.
   (VII)  ANY  BALANCE REMAINING IN THE CAPITAL AWARD ACCOUNT OF A VENDOR
 TRACK OR OPERATOR OR ANY OTHER VIDEO LOTTERY GAMING FACILITY AS OF MARCH

 A. 2009--B                         64
 
 THIRTY-FIRST, TWO THOUSAND NINETEEN SHALL  BE  TRANSFERRED  FOR  DEPOSIT
 INTO A SEGREGATED ACCOUNT ESTABLISHED BY THIS SUBPARAGRAPH.
   1-B.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY
 ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO  SUBDIVISION  I
 OF  SECTION  SIXTEEN  HUNDRED  SEVENTEEN-A  OF THIS ARTICLE SHALL NOT BE
 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
 GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR  FEES
 PAYABLE  TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES PAYA-
 BLE TO THE DIVISION'S VIDEO LOTTERY  GAMING  EQUIPMENT  CONTRACTORS,  OR
 RACING SUPPORT PAYMENTS.
   1-C.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERA-
 TOR OF A VENDOR TRACK OR THE OPERATOR OF ANY OTHER VIDEO LOTTERY  GAMING
 FACILITY  SHALL  FUND  A  MARKETING  AND  PROMOTION  PROGRAM  OUT OF THE
 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL  MARKETING  PLAN  FOR
 THE  REVIEW  AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU-
 MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE  COMMISSION.
 THE  COMMISSION  SHALL  HAVE  THE  RIGHT  TO REJECT ANY ADVERTISEMENT OR
 PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR  INTERESTS  OF
 THE LOTTERY OR ITS PROGRAMS.
   § 3. This act shall take effect immediately.
 
                                  PART FF
 
   Section  1.  Subdivision 25 of section 1301 of the racing, pari-mutuel
 wagering and breeding law, as added by chapter 174 of the laws of  2013,
 is amended to read as follows:
   25. "Gross gaming revenue". The total of all sums actually received by
 a  gaming facility licensee from gaming operations less the total of all
 sums paid out as winnings to patrons; provided, however, that the  total
 of  all  sums paid out as winnings to patrons shall not include the cash
 equivalent value of any merchandise or thing  of  value  included  in  a
 jackpot  or  payout[; provided further, that the issuance to or wagering
 by patrons of a gaming facility of any promotional gaming  credit  shall
 not be taxable for the purposes of determining gross revenue].
   § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 2 to read as follows:
   2. PERMISSIBLE DEDUCTIONS. (A) A GAMING FACILITY MAY DEDUCT FROM GROSS
 GAMING  REVENUE THE AMOUNT OF APPROVED PROMOTIONAL GAMING CREDITS ISSUED
 TO AND WAGERED BY  PATRONS  OF  SUCH  GAMING  FACILITY.  THE  AMOUNT  OF
 APPROVED PROMOTIONAL CREDITS SHALL BE CALCULATED AS FOLLOWS:
   (1)  FOR  THE  PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND EIGHTEEN
 AND ENDING ON MARCH THIRTY-FIRST,  TWO  THOUSAND  TWENTY,  AN  AGGREGATE
 MAXIMUM  AMOUNT  EQUAL  TO  NINETEEN  PERCENT  OF THE BASE TAXABLE GROSS
 GAMING REVENUE AMOUNT DURING THE SPECIFIED PERIOD;
   (2) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY  AND
 ENDING  ON  MARCH  THIRTY-FIRST,  TWO  THOUSAND  TWENTY-THREE, A MAXIMUM
 AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVEN-
 UE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD; AND
   (3) FOR THE PERIOD COMMENCING ON APRIL  FIRST,  TWO  THOUSAND  TWENTY-
 THREE  AND  THEREAFTER, A MAXIMUM AMOUNT EQUAL TO FIFTEEN PERCENT OF THE
 BASE TAXABLE GROSS GAMING REVENUE AMOUNT FOR EACH FISCAL YEAR DURING THE
 SPECIFIED PERIOD.
   (B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION,  "BASE  TAXABLE
 GROSS  GAMING REVENUE AMOUNT" MEANS THAT PORTION OF GROSS GAMING REVENUE
 NOT ATTRIBUTABLE TO DEDUCTIBLE PROMOTIONAL CREDIT.

 A. 2009--B                         65
 
   (C) ANY TAX DUE ON PROMOTIONAL CREDITS DEDUCTED DURING THE FISCAL YEAR
 IN EXCESS OF THE ALLOWABLE DEDUCTION SHALL BE PAID  WITHIN  THIRTY  DAYS
 FROM THE END OF THE FISCAL YEAR.
   (D)  ONLY  PROMOTIONAL  CREDITS  THAT ARE ISSUED PURSUANT TO A WRITTEN
 PLAN APPROVED BY THE COMMISSION AS DESIGNED TO INCREASE REVENUE  AT  THE
 FACILITY MAY BE ELIGIBLE FOR SUCH DEDUCTION. THE COMMISSION, IN CONJUNC-
 TION  WITH  THE DIRECTOR OF THE BUDGET, MAY SUSPEND APPROVAL OF ANY PLAN
 WHENEVER THEY JOINTLY DETERMINE THAT THE USE OF THE PROMOTIONAL  CREDITS
 UNDER  SUCH  PLAN  IS  NOT EFFECTIVE IN INCREASING THE AMOUNT OF REVENUE
 EARNED.
   § 3. This act shall take effect immediately.

                                  PART GG
 
   Section 1. Subdivision 12 of section 502 of  the  racing,  pari-mutuel
 wagering and breeding law is amended to read as follows:
   12.  A.  The  board of directors shall hold an annual meeting AND MEET
 NOT LESS THAN QUARTERLY.
   B. EACH BOARD MEMBER SHALL  RECEIVE,  NOT  LESS  THAN  SEVEN  DAYS  IN
 ADVANCE  OF  A  MEETING, DOCUMENTATION NECESSARY TO ENSURE KNOWLEDGEABLE
 AND ENGAGED PARTICIPATION. SUCH  DOCUMENTATION  SHALL  INCLUDE  MATERIAL
 RELEVANT  TO  EACH  AGENDA  ITEM  INCLUDING  BACKGROUND  INFORMATION  OF
 DISCUSSION ITEMS, RESOLUTIONS TO BE CONSIDERED AND ASSOCIATED DOCUMENTS,
 A MONTHLY FINANCIAL STATEMENT WHICH SHALL INCLUDE AN UPDATED  CASH  FLOW
 STATEMENT  AND  AGED  PAYABLE  LISTING  OF  INDUSTRY PAYABLES, FINANCIAL
 STATEMENTS, MANAGEMENT REPORTS, COMMITTEE REPORTS AND COMPLIANCE ITEMS.
   C. STAFF OF THE CORPORATION SHALL ANNUALLY SUBMIT  TO  THE  BOARD  FOR
 APPROVAL  A  FINANCIAL PLAN ACCOMPANIED BY EXPENDITURE, REVENUE AND CASH
 FLOW PROJECTIONS. THE PLAN SHALL  CONTAIN  PROJECTION  OF  REVENUES  AND
 EXPENDITURES BASED ON REASONABLE AND APPROPRIATE ASSUMPTIONS AND METHODS
 OF  ESTIMATIONS,  AND  SHALL  PROVIDE  THAT OPERATIONS WILL BE CONDUCTED
 WITHIN THE CASH RESOURCES  AVAILABLE.  THE  FINANCIAL  PLAN  SHALL  ALSO
 INCLUDE  INFORMATION  REGARDING  PROJECTED EMPLOYMENT LEVELS, COLLECTIVE
 BARGAINING AGREEMENTS AND OTHER  ACTIONS  RELATING  TO  EMPLOYEE  COSTS,
 CAPITAL CONSTRUCTION AND SUCH OTHER MATTERS AS THE BOARD MAY DIRECT.
   D. STAFF OF THE CORPORATION SHALL PREPARE AND SUBMIT TO THE BOARD ON A
 QUARTERLY  BASIS  A  REPORT  OF SUMMARIZED BUDGET DATA DEPICTING OVERALL
 TRENDS, BY MAJOR CATEGORY WITHIN FUNDS, OF ACTUAL  REVENUES  AND  BUDGET
 EXPENDITURES FOR THE ENTIRE BUDGET RATHER THAN INDIVIDUAL LINE ITEMS, AS
 WELL  AS  UPDATED  QUARTERLY  CASH  FLOW  PROJECTIONS  OF  RECEIPTS  AND
 DISBURSEMENTS. SUCH REPORTS SHALL COMPARE REVENUE ESTIMATES  AND  APPRO-
 PRIATIONS  AS  SET FORTH IN SUCH BUDGET AND IN THE QUARTERLY REVENUE AND
 EXPENDITURE PROJECTIONS SUBMITTED THEREWITH, WITH  THE  ACTUAL  REVENUES
 AND  EXPENDITURES  MADE  TO DATE. SUCH REPORTS SHALL ALSO COMPARE ACTUAL
 RECEIPTS AND DISBURSEMENTS WITH THE ESTIMATES CONTAINED IN THE CASH FLOW
 PROJECTIONS, TOGETHER WITH VARIANCES AND THEIR EXPLANATION. ALL QUARTER-
 LY REPORTS SHALL BE ACCOMPANIED BY RECOMMENDATIONS  FROM  THE  PRESIDENT
 SETTING  FORTH  ANY REMEDIAL ACTION NECESSARY TO RESOLVE ANY UNFAVORABLE
 BUDGET VARIANCE INCLUDING THE OVERESTIMATION OF REVENUES AND THE  UNDER-
 ESTIMATION  OF  APPROPRIATIONS.  THESE REPORTS SHALL BE COMPLETED WITHIN
 THIRTY DAYS AFTER THE END OF EACH QUARTER AND SHALL BE SUBMITTED TO  THE
 BOARD BY THE CORPORATION COMPTROLLER.
   E. REVENUE ESTIMATES AND THE FINANCIAL PLAN SHALL BE REGULARLY REEXAM-
 INED  BY THE BOARD AND STAFF AND SHALL PROVIDE A MODIFIED FINANCIAL PLAN
 IN SUCH DETAIL AND WITHIN SUCH TIME PERIODS AS THE BOARD MAY REQUIRE. IN
 THE EVENT OF REDUCTIONS IN  SUCH  REVENUE  ESTIMATES,  THE  BOARD  SHALL

 A. 2009--B                         66
 
 CONSIDER   AND   APPROVE  SUCH  ADJUSTMENTS  IN  REVENUE  ESTIMATES  AND
 REDUCTIONS IN TOTAL EXPENDITURES AS MAY BE NECESSARY TO CONFORM TO  SUCH
 REVISED REVENUE ESTIMATES OR AGGREGATE EXPENDITURE LIMITATIONS.
   § 2. Intentionally omitted.
   § 3. Intentionally omitted.
   § 4. This act shall take effect immediately.
 
                                  PART HH
 
   Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  1
 of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
 follows:
   (a) Any  racing  association  or  corporation  or  regional  off-track
 betting  corporation,  authorized  to conduct pari-mutuel wagering under
 this chapter, desiring to display the simulcast of horse races on  which
 pari-mutuel  betting shall be permitted in the manner and subject to the
 conditions provided for in this article may apply to the commission  for
 a  license  so to do. Applications for licenses shall be in such form as
 may be prescribed by the commission and shall contain  such  information
 or  other material or evidence as the commission may require. No license
 shall be issued by the commission authorizing the simulcast transmission
 of thoroughbred races from a track located in Suffolk  county.  The  fee
 for  such  licenses shall be five hundred dollars per simulcast facility
 and for account wagering licensees that do not operate either  a  simul-
 cast facility that is open to the public within the state of New York or
 a  licensed racetrack within the state, twenty thousand dollars per year
 payable by the licensee to the commission for deposit into  the  general
 fund.  Except  as  provided  in  this  section, the commission shall not
 approve any application to conduct simulcasting into individual or group
 residences, homes or other areas for the purposes of  or  in  connection
 with  pari-mutuel wagering. The commission may approve simulcasting into
 residences, homes or other areas to be conducted jointly by one or  more
 regional  off-track  betting corporations and one or more of the follow-
 ing: a franchised corporation,  thoroughbred  racing  corporation  or  a
 harness racing corporation or association; provided (i) the simulcasting
 consists  only of those races on which pari-mutuel betting is authorized
 by this chapter at one or more simulcast  facilities  for  each  of  the
 contracting  off-track  betting  corporations which shall include wagers
 made in accordance with  section  one  thousand  fifteen,  one  thousand
 sixteen  and  one  thousand  seventeen of this article; provided further
 that the contract provisions or other simulcast  arrangements  for  such
 simulcast  facility  shall  be no less favorable than those in effect on
 January first, two thousand  five;  (ii)  that  each  off-track  betting
 corporation  having  within  its  geographic boundaries such residences,
 homes or other areas technically  capable  of  receiving  the  simulcast
 signal  shall be a contracting party; (iii) the distribution of revenues
 shall be subject to contractual agreement of  the  parties  except  that
 statutory  payments  to  non-contracting  parties,  if  any,  may not be
 reduced; provided, however, that nothing herein to  the  contrary  shall
 prevent a track from televising its races on an irregular basis primari-
 ly for promotional or marketing purposes as found by the commission. For
 purposes of this paragraph, the provisions of section one thousand thir-
 teen  of  this  article  shall  not  apply. Any agreement authorizing an
 in-home simulcasting experiment commencing prior to May fifteenth, nine-
 teen hundred ninety-five, may, and all its terms, be extended until June

 A. 2009--B                         67
 
 thirtieth, two thousand [nineteen] TWENTY; provided, however,  that  any
 party  to  such  agreement  may  elect  to terminate such agreement upon
 conveying written notice to all other parties of such agreement at least
 forty-five  days  prior  to  the  effective date of the termination, via
 registered mail. Any party to an agreement receiving such notice  of  an
 intent  to  terminate, may request the commission to mediate between the
 parties new terms and conditions in a replacement agreement between  the
 parties  as will permit continuation of an in-home experiment until June
 thirtieth, two thousand [nineteen] TWENTY; and (iv)  no  in-home  simul-
 casting in the thoroughbred special betting district shall occur without
 the approval of the regional thoroughbred track.
   §  2.  Subparagraph  (iii)  of paragraph d of subdivision 3 of section
 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
 section 2 of part GG of chapter 59 of the laws of 2018,  is  amended  to
 read as follows:
   (iii) Of the sums retained by a receiving track located in Westchester
 county  on  races received from a franchised corporation, for the period
 commencing January first, two thousand eight and continuing through June
 thirtieth, two thousand [nineteen] TWENTY, the amount  used  exclusively
 for  purses  to  be  awarded  at races conducted by such receiving track
 shall be computed as follows: of the sums so retained, two and  one-half
 percent  of the total pools. Such amount shall be increased or decreased
 in the amount of fifty percent of the difference  in  total  commissions
 determined by comparing the total commissions available after July twen-
 ty-first,  nineteen  hundred  ninety-five  to the total commissions that
 would have been available to such  track  prior  to  July  twenty-first,
 nineteen hundred ninety-five.
   §  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  3
 of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
 follows:
   The provisions of this section shall govern the simulcasting of  races
 conducted  at thoroughbred tracks located in another state or country on
 any day during which a franchised corporation is conducting a race meet-
 ing in Saratoga county at Saratoga  thoroughbred  racetrack  until  June
 thirtieth,  two  thousand [nineteen] TWENTY and on any day regardless of
 whether or not a franchised corporation is conducting a race meeting  in
 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
 two  thousand [nineteen] TWENTY. On any day on which a franchised corpo-
 ration has not scheduled a racing  program  but  a  thoroughbred  racing
 corporation  located  within  the state is conducting racing, every off-
 track betting corporation branch office and every simulcasting  facility
 licensed  in accordance with section one thousand seven (that [have] HAS
 entered into a written agreement  with  such  facility's  representative
 horsemen's  organization,  as  approved by the commission), one thousand
 eight, or one thousand nine of  this  article  shall  be  authorized  to
 accept  wagers  and  display the live simulcast signal from thoroughbred
 tracks located in another  state  or  foreign  country  subject  to  the
 following provisions:
   § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
 and  breeding  law,  as amended by section 4 of part GG of chapter 59 of
 the laws of 2018, is amended to read as follows:
   1. The provisions of this section shall  govern  the  simulcasting  of
 races  conducted  at  harness tracks located in another state or country
 during the period July first, nineteen hundred ninety-four through  June

 A. 2009--B                         68
 
 thirtieth,  two thousand [nineteen] TWENTY. This section shall supersede
 all inconsistent provisions of this chapter.
   §  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  5
 of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
 follows:
   The provisions of this section shall govern the simulcasting of  races
 conducted  at thoroughbred tracks located in another state or country on
 any day during which a franchised corporation is not conducting  a  race
 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
 thirtieth,  two  thousand  [nineteen]  TWENTY.  Every  off-track betting
 corporation branch office and every simulcasting  facility  licensed  in
 accordance  with  section  one  thousand  seven that have entered into a
 written agreement with such facility's representative horsemen's  organ-
 ization  as  approved by the commission, one thousand eight or one thou-
 sand nine of this article shall  be  authorized  to  accept  wagers  and
 display  the  live  full-card  simulcast  signal  of thoroughbred tracks
 (which may include quarter horse or mixed  meetings  provided  that  all
 such wagering on such races shall be construed to be thoroughbred races)
 located  in  another  state or foreign country, subject to the following
 provisions; provided,  however,  no  such  written  agreement  shall  be
 required of a franchised corporation licensed in accordance with section
 one thousand seven of this article:
   §  6. The opening paragraph of section 1018 of the racing, pari-mutuel
 wagering and breeding law, as amended by section 6 of part GG of chapter
 59 of the laws of 2018, is amended to read as follows:
   Notwithstanding any other provision of this chapter,  for  the  period
 July  twenty-fifth, two thousand one through September eighth, two thou-
 sand [eighteen] NINETEEN, when a franchised corporation is conducting  a
 race  meeting  within the state at Saratoga Race Course, every off-track
 betting  corporation  branch  office  and  every  simulcasting  facility
 licensed in accordance with section one thousand seven (that has entered
 into  a written agreement with such facility's representative horsemen's
 organization as approved by the commission), one thousand eight  or  one
 thousand  nine  of this article shall be authorized to accept wagers and
 display the live simulcast signal from thoroughbred  tracks  located  in
 another  state, provided that such facility shall accept wagers on races
 run at all in-state thoroughbred  tracks  which  are  conducting  racing
 programs subject to the following provisions; provided, however, no such
 written agreement shall be required of a franchised corporation licensed
 in accordance with section one thousand seven of this article.
   §  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
 racing, pari-mutuel wagering and breeding law and other laws relating to
 simulcasting, as amended by section 7 of part GG of chapter  59  of  the
 laws of 2018, is amended to read as follows:
   §  32.  This act shall take effect immediately and the pari-mutuel tax
 reductions in section six  of  this  act  shall  expire  and  be  deemed
 repealed  on  July  1,  [2019]  2020;  provided,  however,  that nothing
 contained herein shall be deemed to affect the  application,  qualifica-
 tion,  expiration,  or  repeal  of  any  provision of law amended by any
 section of this act, and such provisions shall be applied  or  qualified
 or  shall  expire  or be deemed repealed in the same manner, to the same
 extent and on the same date as the case may be as otherwise provided  by
 law;  provided  further, however, that sections twenty-three and twenty-
 five of this act shall remain in full force and effect only until May 1,
 1997 and at such time shall be deemed to be repealed.

 A. 2009--B                         69
 
   § 8. Section 54 of chapter 346 of  the  laws  of  1990,  amending  the
 racing, pari-mutuel wagering and breeding law and other laws relating to
 simulcasting  and the imposition of certain taxes, as amended by section
 8 of part GG of chapter 59 of the laws of 2018, is amended  to  read  as
 follows:
   §  54.  This  act  shall  take  effect immediately; provided, however,
 sections three through twelve of this act shall take effect  on  January
 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
 ing  law, as added by section thirty-eight of this act, shall expire and
 be deemed repealed on July 1, [2019] 2020; and section eighteen of  this
 act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
 two of this act shall take effect as of the same date as chapter 772  of
 the laws of 1989 took effect.
   §  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
 pari-mutuel wagering and breeding law, as amended by section 9  of  part
 GG of chapter 59 of the laws of 2018, is amended to read as follows:
   (a)  The  franchised  corporation  authorized  under  this  chapter to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute all sums deposited in any pari-mutuel pool to the holders  of
 winning  tickets therein, provided such tickets be presented for payment
 before April first of the year following the  year  of  their  purchase,
 less  an  amount  which  shall be established and retained by such fran-
 chised corporation of between twelve to  seventeen  per  centum  of  the
 total  deposits in pools resulting from on-track regular bets, and four-
 teen to twenty-one per centum of the total deposits in  pools  resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total  deposits in pools resulting from on-track exotic bets and fifteen
 to thirty-six per centum of the total deposits in pools  resulting  from
 on-track  super  exotic  bets, plus the breaks. The retention rate to be
 established is subject to the prior approval of the gaming commission.
   Such rate may not be changed more than once per calendar quarter to be
 effective on the first day of the calendar quarter.  "Exotic  bets"  and
 "multiple  bets"  shall  have  the  meanings  set  forth in section five
 hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
 meaning  set  forth  in  section  three hundred one of this chapter. For
 purposes of this section, a "pick six bet" shall mean a  single  bet  or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
 retained there shall be paid  by  such  franchised  corporation  to  the
 commissioner  of  taxation and finance, as a reasonable tax by the state
 for the privilege of conducting pari-mutuel betting on the races run  at
 the  race  meetings  held  by such franchised corporation, the following
 percentages of the total pool for regular and  multiple  bets  five  per
 centum  of regular bets and four per centum of multiple bets plus twenty
 per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
 centum  plus  twenty per centum of the breaks, and for super exotic bets
 seven and one-half per centum plus fifty per centum of the breaks.
   For the  period  June  first,  nineteen  hundred  ninety-five  through
 September  ninth,  nineteen  hundred  ninety-nine,  such  tax on regular
 wagers shall be three per centum and such tax on multiple  wagers  shall
 be  two  and  one-half per centum, plus twenty per centum of the breaks.

 A. 2009--B                         70
 
 For the period September tenth,  nineteen  hundred  ninety-nine  through
 March  thirty-first,  two  thousand one, such tax on all wagers shall be
 two and six-tenths per centum and for the period April first, two  thou-
 sand  one through December thirty-first, two thousand [nineteen] TWENTY,
 such tax on all wagers shall be one and six-tenths per centum, plus,  in
 each  such  period,  twenty per centum of the breaks. Payment to the New
 York state thoroughbred breeding and development fund by such franchised
 corporation shall be one-half of one per centum of total daily  on-track
 pari-mutuel  pools  resulting from regular, multiple and exotic bets and
 three per centum of super exotic bets provided, however,  that  for  the
 period September tenth, nineteen hundred ninety-nine through March thir-
 ty-first,  two thousand one, such payment shall be six-tenths of one per
 centum of regular, multiple and exotic pools and for  the  period  April
 first,  two  thousand  one  through  December thirty-first, two thousand
 [nineteen] TWENTY, such payment shall be seven-tenths of one per  centum
 of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART II
 
                           Intentionally Omitted
 
                                  PART JJ
 
   Section  1.  Section  2  of part EE of chapter 59 of the laws of 2018,
 amending the racing, pari-mutuel wagering and breeding law  relating  to
 adjusting  the  franchise payment and establishing an advisory committee
 to review the structure, operations and funding of equine  drug  testing
 and research, is amended to read as follows:
   §  2.  An  advisory committee shall be established within the New York
 gaming commission comprised of individuals with demonstrated interest in
 the performance of thoroughbred and standardbred race horses  to  review
 the present structure, operations and funding of equine drug testing and
 research  conducted  pursuant to article nine of the racing, pari-mutuel
 wagering and breeding law.  Members  of  the  committee,  who  shall  be
 appointed  by the governor, shall include but not be limited to a desig-
 nee at the recommendation of each licensed  or  franchised  thoroughbred
 and  standardbred  racetrack,  a  designee at the recommendation of each
 operating regional off-track betting  corporation,  a  designee  at  the
 recommendation of each recognized horsemen's organization at licensed or
 franchised  thoroughbred  and standardbred racetracks, a designee at the
 recommendation of both Morrisville State College and the Cornell Univer-
 sity School of Veterinary Medicine, and two designees each at the recom-
 mendation of the speaker of the assembly and temporary president of  the
 senate.  The  governor  shall designate the chair from among the members
 who shall serve as such at the pleasure of the governor. State  agencies
 shall  cooperate with and assist the committee in the fulfillment of its
 duties and may  render  informational,  non-personnel  services  to  the
 committee within their respective functions as the committee may reason-
 ably request. Recommendations shall be delivered to the temporary presi-
 dent  of the senate, speaker of the assembly and governor by December 1,
 [2018] 2019 regarding the future of such research, testing and  funding.
 Members of the board shall not be considered policymakers.
   §  2. Subdivision 1 of section 902 of the racing, pari-mutuel wagering
 and breeding law, as amended by chapter 15  of  the  laws  of  2010,  is
 amended to read as follows:

 A. 2009--B                         71
 
   1.  In  order  to assure the public's confidence and continue the high
 degree of integrity in racing at the pari-mutuel betting tracks,  equine
 drug  testing  at  race  meetings  shall be conducted by a state college
 within this state with an approved equine science program OR A  SUITABLE
 LABORATORY  IN  THE  STATE  OF  NEW YORK. The [state racing and wagering
 board] GAMING COMMISSION shall  promulgate  any  rules  and  regulations
 necessary  to implement the provisions of this section, including admin-
 istrative penalties of loss of purse money, fines,  or  denial,  suspen-
 sion[,] or revocation of a license for racing drugged horses.
   § 3. This act shall take effect immediately.
 
                                  PART KK

                           Intentionally Omitted
 
                                  PART LL
 
                           Intentionally Omitted
 
                                  PART MM
 
   Section  1.  Section  1405-B of the tax law is amended by adding a new
 subdivision (c) to read as follows:
   (C) THE INFORMATION CONTAINED WITHIN INFORMATION RETURNS  FILED  UNDER
 SUBDIVISION  (B)  OF THIS SECTION MAY BE PROVIDED BY THE COMMISSIONER TO
 LOCAL ASSESSORS FOR USE IN REAL PROPERTY TAX  ADMINISTRATION,  AND  SUCH
 INFORMATION  SHALL NOT BE SUBJECT TO THE SECRECY PROVISIONS SET FORTH IN
 SECTION FOURTEEN HUNDRED EIGHTEEN OF THIS  CHAPTER,  PROVIDED,  HOWEVER,
 THAT  THE  COMMISSIONER  SHALL  NOT  DISCLOSE SOCIAL SECURITY NUMBERS OR
 EMPLOYER IDENTIFICATION NUMBERS.
   § 2. This act shall take effect January 1, 2020.
 
                                  PART NN
 
   Section 1. Paragraph 3 of subsection (e-1) of section 606 of  the  tax
 law,  as added by section 2 of part K of chapter 59 of the laws of 2014,
 is amended as follows:
   (3) Determination of credit. For  taxable  years  after  two  thousand
 thirteen  [and  prior to two thousand sixteen], the amount of the credit
 allowable under this subsection shall be determined as follows:
 If household gross income    Excess real property    The credit amount is
 for the taxable year is:     taxes are the excess    the following
                              of real property tax    percentage of excess
                              equivalent or the       property taxes:
                              excess of qualifying
                              real property taxes
                              over the following
                              percentage of
                              household gross
                              income:
 Less than $100,000                   4                    4.5
 $100,000 to less than                5                    3.0
 $150,000
 $150,000 to less than                6                    1.5
 $200,000

 A. 2009--B                         72
 
   Notwithstanding the foregoing provisions, the  maximum  credit  deter-
 mined under this subparagraph may not exceed five hundred dollars.
   § 2. This act shall take effect immediately and shall apply to taxable
 years  beginning  on  and after January 1, 2016; provided, however, that
 the amendments to subsection (e-1) of section 606 of the tax law made by
 section one of this act shall not affect the repeal of  such  subsection
 and shall be deemed to be repealed therewith.
 
                                  PART OO
 
                           Intentionally Omitted
 
                                  PART PP
 
                           Intentionally Omitted
 
                                  PART QQ
 
                           Intentionally Omitted
 
                                  PART RR
 
                           Intentionally Omitted
 
                                  PART SS
 
   Section  1.  Subdivision  6 of section 1306-a of the real property tax
 law, as amended by section 3 of part TT of chapter 59  of  the  laws  of
 2017, is amended to read as follows:
   6. When the commissioner determines, at least twenty days prior to the
 levy  of  school  district taxes, that an advance credit of the personal
 income tax credit authorized by subsection (eee) of section six  hundred
 six  of  the  tax law will be provided to the owners of a parcel in that
 school district, he or she shall so  notify  the  assessor,  the  county
 director  of  real  property  tax  services,  and the authorities of the
 school district, who shall cause a statement to be  placed  on  the  tax
 bill  for  the parcel in substantially the following form: "An estimated
 STAR check HAS BEEN OR will be mailed to you [upon issuance] by the  NYS
 Tax  Department.  Any  overpayment  or underpayment can be reconciled on
 your next tax return or STAR credit check."
   Notwithstanding any provision of law to the  contrary,  in  the  event
 that  the  parcel  in  question had been granted a STAR exemption on the
 assessment roll upon which school district taxes are to be levied,  such
 exemption  shall  be  deemed  null  and  void, shall be removed from the
 assessment roll, and shall be disregarded when the parcel's tax  liabil-
 ity  is  determined.  The  assessor or other local official or officials
 having custody and control of the data  file  used  to  generate  school
 district  tax  rolls  and  tax bills shall be authorized and directed to
 change such file as necessary to enable the school district  authorities
 to discharge the duties imposed upon them by this subdivision.
   § 2. This act shall take effect immediately.
 
                                  PART TT

 A. 2009--B                         73
 
   Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real
 property  tax  law, as added by section 1 of part D of chapter 60 of the
 laws of 2016, is amended to read as follows:
   (a-2)  Notwithstanding  any provision of law to the contrary, where [a
 renewal] AN application for the "enhanced" STAR exemption authorized  by
 subdivision  four  of  this  section has not been filed on or before the
 taxable status date, and the owner believes that good cause existed  for
 the  failure  to  file the [renewal] application by that date, the owner
 may, no later than the last day for paying school taxes  without  incur-
 ring  interest  or penalty, submit a written request to the commissioner
 asking him or her to extend the filing deadline and grant the exemption.
 Such request shall contain  an  explanation  of  why  the  deadline  was
 missed, and shall be accompanied by [a renewal] AN application, reflect-
 ing  the  facts  and circumstances as they existed on the taxable status
 date. After consulting with the assessor, the  commissioner  may  extend
 the  filing  deadline  and  grant  the  exemption if the commissioner is
 satisfied that (i) good cause  existed  for  the  failure  to  file  the
 [renewal]  application  by  the  taxable  status date, and that (ii) the
 applicant is otherwise entitled to the exemption. The commissioner shall
 mail notice of his or her determination to such owner and the  assessor.
 If  the  determination  states  that  the  commissioner  has granted the
 exemption, the assessor shall thereupon be authorized  and  directed  to
 correct  the  assessment  roll  accordingly,  or,  if another person has
 custody or control of the assessment roll, to direct that person to make
 the appropriate corrections. If the correction is not made before school
 taxes are levied, the [failure to take the exemption into account in the
 computation of the tax shall be deemed a "clerical error"  for  purposes
 of  title  three of article five of this chapter, and shall be corrected
 accordingly]  SCHOOL  DISTRICT  AUTHORITIES  SHALL  BE  AUTHORIZED   AND
 DIRECTED  TO  TAKE ACCOUNT OF THE FACT THAT THE COMMISSIONER HAS GRANTED
 THE EXEMPTION BY CORRECTING THE APPLICANT'S TAX BILL  AND/OR  ISSUING  A
 REFUND ACCORDINGLY.
   § 2. Paragraph (d) of subdivision 2 of section 496 of the real proper-
 ty tax law, as added by section 3 of part A of chapter 60 of the laws of
 2016, is amended to read as follows:
   (d) If the applicant is renouncing a STAR exemption in order to quali-
 fy  for the personal income tax credit authorized by subsection (eee) of
 section six hundred six of the tax law,  and  no  other  exemptions  are
 being renounced on the same application, OR IF THE APPLICANT IS RENOUNC-
 ING A STAR EXEMPTION BEFORE SCHOOL TAXES HAVE BEEN LEVIED ON THE ASSESS-
 MENT  ROLL UPON WHICH THAT EXEMPTION APPEARS, no processing fee shall be
 applicable.
   § 3. Paragraph (a) of subdivision 2 of section 496 of the real proper-
 ty tax law, as amended by section 3 of part A of chapter 60 of the  laws
 of 2016, is amended to read as follows:
   (a) For each assessment roll on which the renounced exemption appears,
 the assessed value that was exempted shall be multiplied by the tax rate
 or  rates that were applied to that assessment roll, OR IN THE CASE OF A
 RENOUNCED STAR EXEMPTION, THE TAX SAVINGS CALCULATED PURSUANT TO  SUBDI-
 VISION  TWO  OF SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER. Interest
 shall then be added to each such  product  at  the  rate  prescribed  by
 section  nine hundred twenty-four-a of this chapter or such other law as
 may be applicable for each month or portion thereon since  the  levy  of
 taxes upon such assessment roll.

 A. 2009--B                         74
 
   § 4. Paragraph 5 of subsection (eee) of section 606 of the tax law, as
 amended  by  section  8  of part A of chapter 73 of the laws of 2016, is
 amended to read as follows:
   (5)  Disqualification.  A  taxpayer  shall  not qualify for the credit
 authorized by this subsection if the parcel that serves as  the  taxpay-
 er's  primary  residence  received  the STAR exemption on the assessment
 roll upon which school district taxes for  the  associated  fiscal  year
 [where]  WERE  levied.  Provided,  however, that the taxpayer may remove
 this disqualification  by  renouncing  the  exemption  [and  making  any
 required  payments]  by  December  thirty-first  of the taxable year, as
 provided by subdivision sixteen of section four hundred  twenty-five  of
 the  real  property tax law, AND MAKING ANY REQUIRED PAYMENTS WITHIN THE
 TIME FRAME PRESCRIBED BY SECTION FOUR HUNDRED  NINETY-SIX  OF  THE  REAL
 PROPERTY TAX LAW.
   § 5. This act shall take effect immediately.
 
                                  PART UU
 
   Section 1. Intentionally omitted.
   § 2. Intentionally omitted.
   § 3. Intentionally omitted.
   § 4. Intentionally omitted.
   § 5. Intentionally omitted.
   § 6. Intentionally omitted.
   § 7. Intentionally omitted.
   § 8. Intentionally omitted.
   § 9. Intentionally omitted.
   § 10. Intentionally omitted.
   § 11. Intentionally omitted.
   § 12. Intentionally omitted.
   § 13. Intentionally omitted.
   § 14. Intentionally omitted.
   § 15. Intentionally omitted.
   § 16. Intentionally omitted.
   §  17.  The tax law is amended by adding a new article 28-C to read as
 follows:
 
                               ARTICLE 28-C
                    SUPPLEMENTAL TAX ON VAPOR PRODUCTS
 
 SECTION 1180. DEFINITIONS.
         1181. IMPOSITION OF TAX.
         1182. IMPOSITION OF COMPENSATING USE TAX.
         1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL.
         1184. ADMINISTRATIVE PROVISIONS.
         1185. CRIMINAL PENALTIES.
         1186. DEPOSIT AND DISPOSITION OF REVENUE.
   § 1180. DEFINITIONS. FOR THE PURPOSES OF THE  TAXES  IMPOSED  BY  THIS
 ARTICLE, THE FOLLOWING TERMS SHALL MEAN:
   (A) "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS
 OF  THE  PRESENCE  OF  NICOTINE  THEREIN,  THAT  IS MANUFACTURED IN TO A
 FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE,  ELECTRONIC  CIGAR,
 ELECTRONIC  CIGARILLO,  ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER
 SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY  PRODUCT  APPROVED
 BY  THE  UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL

 A. 2009--B                         75
 
 DEVICE, OR MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF  ARTI-
 CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
   (B) "VAPOR PRODUCTS DEALER" MEANS A PERSON LICENSED BY THE COMMISSION-
 ER TO SELL VAPOR PRODUCTS IN THIS STATE.
   §  1181.  IMPOSITION  OF  TAX. IN ADDITION TO ANY OTHER TAX IMPOSED BY
 THIS CHAPTER OR OTHER LAW, THERE IS  HEREBY  IMPOSED  A  TAX  OF  TWENTY
 PERCENT  ON RECEIPTS FROM THE RETAIL SALE OF VAPOR PRODUCTS SOLD IN THIS
 STATE. THE TAX IS IMPOSED ON THE PURCHASER AND COLLECTED  BY  THE  VAPOR
 PRODUCTS  DEALER AS DEFINED IN SUBDIVISION (B) OF SECTION ELEVEN HUNDRED
 EIGHTY OF THIS ARTICLE, IN TRUST FOR AND ON ACCOUNT OF THE STATE.
   § 1182. IMPOSITION OF COMPENSATING USE TAX. (A) EXCEPT TO  THE  EXTENT
 THAT  VAPOR  PRODUCTS  HAVE  ALREADY  BEEN OR WILL BE SUBJECT TO THE TAX
 IMPOSED BY SECTION ELEVEN HUNDRED EIGHTY-ONE OF  THIS  ARTICLE,  OR  ARE
 OTHERWISE  EXEMPT  UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED A USE TAX
 ON EVERY USE WITHIN THE  STATE  OF  VAPOR  PRODUCTS:  (1)  PURCHASED  AT
 RETAIL;  AND  (2)  MANUFACTURED OR PROCESSED BY THE USER IF ITEMS OF THE
 SAME KIND ARE SOLD BY HIM OR HER IN THE REGULAR COURSE  OF  HIS  OR  HER
 BUSINESS.
   (B)  FOR PURPOSES OF PARAGRAPH ONE OF SUBDIVISION (A) OF THIS SECTION,
 THE TAX SHALL BE AT THE RATE OF  TWENTY  PERCENT  OF  THE  CONSIDERATION
 GIVEN  OR  CONTRACTED  TO  BE  GIVEN FOR SUCH VAPOR PRODUCT PURCHASED AT
 RETAIL. FOR PURPOSES  OF  PARAGRAPH  TWO  OF  SUBDIVISION  (A)  OF  THIS
 SECTION,  THE TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE PRICE AT
 WHICH SUCH ITEMS OF THE SAME KIND OF VAPOR PRODUCT ARE OFFERED FOR  SALE
 BY THE USER, AND THE MERE STORAGE, KEEPING, RETENTION OR WITHDRAWAL FROM
 STORAGE  OF  SUCH VAPOR PRODUCT BY THE PERSON THAT MANUFACTURED OR PROC-
 ESSED SUCH VAPOR PRODUCT SHALL NOT BE DEEMED A TAXABLE  USE  BY  HIM  OR
 HER.
   (C) THE TAX DUE PURSUANT TO THIS SECTION SHALL BE PAID AND REPORTED NO
 LATER  THAN  TWENTY  DAYS  AFTER  SUCH  USE  ON A FORM PRESCRIBED BY THE
 COMMISSIONER.
   § 1183. VAPOR PRODUCTS DEALER  REGISTRATION  AND  RENEWAL.  (A)  EVERY
 PERSON  WHO  INTENDS  TO  SELL VAPOR PRODUCTS IN THIS STATE MUST RECEIVE
 FROM THE COMMISSIONER A CERTIFICATE OF REGISTRATION PRIOR TO ENGAGING IN
 BUSINESS. SUCH PERSON MUST ELECTRONICALLY SUBMIT  A  PROPERLY  COMPLETED
 APPLICATION FOR A CERTIFICATE OF REGISTRATION FOR EACH LOCATION AT WHICH
 VAPOR  PRODUCTS  WILL BE SOLD IN THIS STATE, ON A FORM PRESCRIBED BY THE
 COMMISSIONER, AND SHALL BE ACCOMPANIED BY A  NON-REFUNDABLE  APPLICATION
 FEE OF THREE HUNDRED DOLLARS.
    (B)  A  VAPOR  PRODUCTS  DEALER  CERTIFICATE OF REGISTRATION SHALL BE
 VALID FOR THE CALENDAR YEAR  FOR  WHICH  IT  IS  ISSUED  UNLESS  EARLIER
 SUSPENDED  OR  REVOKED.  UPON  THE  EXPIRATION OF THE TERM STATED ON THE
 CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE SHALL BE NULL AND VOID.  A
 CERTIFICATE  OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE AND
 SHALL BE DESTROYED IMMEDIATELY UPON THE VAPOR PRODUCTS DEALER CEASING TO
 DO BUSINESS AS SPECIFIED IN SUCH CERTIFICATE OR IN THE EVENT  THAT  SUCH
 BUSINESS NEVER COMMENCED.
   (C) EVERY VAPOR PRODUCT DEALER SHALL PUBLICLY DISPLAY A VAPOR PRODUCTS
 DEALER  CERTIFICATE  OF  REGISTRATION  IN EACH PLACE OF BUSINESS IN THIS
 STATE WHERE VAPOR PRODUCTS ARE SOLD AT RETAIL. A VAPOR  PRODUCTS  DEALER
 WHO  HAS  NO REGULAR PLACE OF BUSINESS SHALL PUBLICLY DISPLAY SUCH VALID
 CERTIFICATE ON EACH OF ITS CARTS, STANDS, TRUCKS OR OTHER  MERCHANDISING
 DEVICES THROUGH WHICH IT SELLS VAPOR PRODUCTS.
   (D) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS-
 TRATION  TO  ANY  APPLICANT  WHO DOES NOT POSSESS A VALID CERTIFICATE OF
 AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER.   IN

 A. 2009--B                         76
 
 ADDITION,  THE  COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGIS-
 TRATION, OR SUSPEND, CANCEL OR  REVOKE  A  CERTIFICATE  OF  REGISTRATION
 ISSUED  TO  ANY PERSON WHO: (A) HAS A PAST-DUE LIABILITY AS THAT TERM IS
 DEFINED  IN  SECTION  ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER; (B) HAS
 HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE OR ANY  LICENSE  OR
 REGISTRATION  PROVIDED  FOR IN THIS CHAPTER REVOKED WITHIN ONE YEAR FROM
 THE DATE ON WHICH SUCH APPLICATION WAS FILED; (C) HAS  BEEN CONVICTED OF
 A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM  THE  DATE  ON
 WHICH  SUCH  APPLICATION WAS FILED; (D) WILLFULLY FAILS TO FILE A REPORT
 OR RETURN REQUIRED BY THIS ARTICLE; (E) WILLFULLY FILES,  CAUSES  TO  BE
 FILED,  GIVES  OR  CAUSES  TO  BE GIVEN A REPORT, RETURN, CERTIFICATE OR
 AFFIDAVIT REQUIRED BY THIS ARTICLE WHICH IS FALSE; (F)  WILLFULLY  FAILS
 TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS
 ARTICLE;  OR (G) WHOSE PLACE OF BUSINESS IS AT THE SAME PREMISES AS THAT
 OF A PERSON WHOSE VAPOR PRODUCTS DEALER REGISTRATION  HAS  BEEN  REVOKED
 AND  WHERE  SUCH  REVOCATION IS STILL IN EFFECT, UNLESS THE APPLICANT OR
 VAPOR PRODUCTS DEALER PROVIDES THE COMMISSIONER WITH ADEQUATE DOCUMENTA-
 TION DEMONSTRATING THAT SUCH APPLICANT OR VAPOR PRODUCTS DEALER ACQUIRED
 THE PREMISES OR BUSINESS THROUGH AN ARM'S LENGTH TRANSACTION AS  DEFINED
 IN  PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-A OF
 THIS CHAPTER.
   (2) IN ADDITION TO THE GROUNDS  PROVIDED  IN  PARAGRAPH  ONE  OF  THIS
 SUBDIVISION,  THE  COMMISSIONER  SHALL  REFUSE TO ISSUE A CERTIFICATE OF
 REGISTRATION AND SHALL CANCEL OR SUSPEND A CERTIFICATE  OF  REGISTRATION
 AS  DIRECTED BY AN ENFORCEMENT OFFICER PURSUANT TO ARTICLE THIRTEEN-F OF
 THE PUBLIC HEALTH LAW. NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO  THE
 CONTRARY,  AN APPLICANT WHOSE APPLICATION FOR A CERTIFICATE OF REGISTRA-
 TION IS REFUSED  OR  A  VAPOR  PRODUCTS  DEALER  WHOSE  REGISTRATION  IS
 CANCELLED  OR  SUSPENDED  UNDER  THIS PARAGRAPH SHALL HAVE NO RIGHT TO A
 HEARING UNDER THIS CHAPTER AND SHALL HAVE NO RIGHT TO COMMENCE  A  COURT
 ACTION  OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE COMMIS-
 SIONER  WITH  RESPECT  TO  SUCH  REFUSAL,  SUSPENSION  OR  CANCELLATION;
 PROVIDED,  HOWEVER,  THAT  NOTHING  HEREIN  SHALL BE CONSTRUED TO DENY A
 VAPOR PRODUCTS DEALER A HEARING UNDER ARTICLE THIRTEEN-F OF  THE  PUBLIC
 HEALTH LAW OR TO PROHIBIT VAPOR PRODUCTS DEALERS FROM COMMENCING A COURT
 ACTION  OR  PROCEEDING  AGAINST  AN  ENFORCEMENT  OFFICER  AS DEFINED IN
 SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC HEALTH LAW.
   (E) IF A VAPOR PRODUCTS DEALER IS SUSPENDED, CANCELLED OR REVOKED  AND
 SUCH  VAPOR  PRODUCTS  DEALER SELLS VAPOR PRODUCTS THROUGH MORE THAN ONE
 PLACE OF BUSINESS IN THIS STATE, THE VAPOR PRODUCTS DEALER'S CERTIFICATE
 OF REGISTRATION ISSUED TO THAT PLACE OF BUSINESS, CART, STAND, TRUCK  OR
 OTHER  MERCHANDISING  DEVICE,  WHERE  SUCH  VIOLATION OCCURRED, SHALL BE
 SUSPENDED,  REVOKED  OR  CANCELLED.  PROVIDED,  HOWEVER,  UPON  A  VAPOR
 PRODUCTS  DEALER'S THIRD SUSPENSION, CANCELLATION OR REVOCATION WITHIN A
 FIVE-YEAR PERIOD FOR ANY ONE OR MORE BUSINESSES OWNED OR OPERATED BY THE
 VAPOR PRODUCTS DEALER, SUCH SUSPENSION, CANCELLATION, OR  REVOCATION  OF
 THE  VAPOR  PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION SHALL APPLY TO
 ALL PLACES OF BUSINESS WHERE HE OR SHE  SELLS  VAPOR  PRODUCTS  IN  THIS
 STATE.
   (F)  EVERY  HOLDER  OF  A  CERTIFICATE OF REGISTRATION MUST NOTIFY THE
 COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE  CERTIF-
 ICATE OR CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR THE
 CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR BEFORE
 THE  LAST  DAY  OF  THE  MONTH IN WHICH A CHANGE OCCURS AND MUST BE MADE
 ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.

 A. 2009--B                         77
 
   (G) EVERY VAPOR PRODUCTS DEALER WHO HOLDS A CERTIFICATE  OF  REGISTRA-
 TION  UNDER  THIS ARTICLE SHALL BE REQUIRED TO REAPPLY FOR A CERTIFICATE
 OF REGISTRATION FOR THE FOLLOWING CALENDAR YEAR ON OR BEFORE THE TWENTI-
 ETH DAY OF SEPTEMBER AND SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME
 REQUIREMENTS  AND  CONDITIONS,  INCLUDING  GROUNDS  FOR  REFUSAL,  AS AN
 INITIAL REGISTRATION UNDER THIS ARTICLE, INCLUDING BUT  NOT  LIMITED  TO
 THE  PAYMENT OF THE THREE HUNDRED DOLLAR APPLICATION FEE FOR EACH RETAIL
 LOCATION.
   (H) IN ADDITION TO ANY OTHER PENALTY  IMPOSED  BY  THIS  CHAPTER,  ANY
 VAPOR  PRODUCTS  DEALER WHO VIOLATES THE PROVISIONS OF THIS SECTION, (1)
 FOR A FIRST VIOLATION IS LIABLE FOR A CIVIL  FINE  NOT  LESS  THAN  FIVE
 THOUSAND DOLLARS BUT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND SUCH
 CERTIFICATE  OF  REGISTRATION  MAY BE SUSPENDED FOR A PERIOD OF NOT MORE
 THAN SIX MONTHS; AND (2) FOR A SECOND  OR  SUBSEQUENT  VIOLATION  WITHIN
 THREE YEARS FOLLOWING A PRIOR VIOLATION OF THIS SECTION, IS LIABLE FOR A
 CIVIL  FINE NOT LESS THAN TEN THOUSAND DOLLARS BUT NOT TO EXCEED THIRTY-
 FIVE THOUSAND DOLLARS  AND  SUCH  CERTIFICATE  OF  REGISTRATION  MAY  BE
 SUSPENDED  FOR  A  PERIOD OF UP TO THIRTY-SIX MONTHS; OR (3) FOR A THIRD
 VIOLATION WITHIN A PERIOD OF FIVE YEARS, ITS VAPOR PRODUCTS  CERTIFICATE
 OR  CERTIFICATES  OF REGISTRATION ISSUED TO EACH PLACE OF BUSINESS OWNED
 OR OPERATED BY THE VAPOR PRODUCTS DEALER IN THIS STATE, SHALL BE REVOKED
 FOR A PERIOD OF UP TO FIVE YEARS.
   § 1184. ADMINISTRATIVE PROVISIONS. (A) EXCEPT  AS  OTHERWISE  PROVIDED
 FOR IN THIS ARTICLE, THE TAXES IMPOSED BY THIS ARTICLE SHALL BE ADMINIS-
 TERED  AND  COLLECTED  IN  A  LIKE  MANNER AS AND JOINTLY WITH THE TAXES
 IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN  OF  THIS
 CHAPTER.  IN ADDITION, EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, ALL
 OF THE PROVISIONS  OF  ARTICLE  TWENTY-EIGHT  OF  THIS  CHAPTER  (EXCEPT
 SECTIONS  ELEVEN  HUNDRED  SEVEN,  ELEVEN  HUNDRED EIGHT, ELEVEN HUNDRED
 NINE, AND ELEVEN HUNDRED FORTY-EIGHT) RELATING TO OR APPLICABLE  TO  THE
 ADMINISTRATION,  COLLECTION  AND  REVIEW  OF  THE  TAXES IMPOSED BY SUCH
 SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN, INCLUDING, BUT  NOT
 LIMITED TO, THE PROVISIONS RELATING TO DEFINITIONS, RETURNS, EXEMPTIONS,
 PENALTIES,  TAX  SECRECY, PERSONAL LIABILITY FOR THE TAX, AND COLLECTION
 OF TAX FROM THE CUSTOMER, SHALL APPLY TO THE TAXES IMPOSED BY THIS ARTI-
 CLE SO FAR AS SUCH PROVISIONS  CAN  BE  MADE  APPLICABLE  TO  THE  TAXES
 IMPOSED BY THIS ARTICLE WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTI-
 CLE  AND  SUCH  MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH
 LANGUAGE TO THE TAXES SO IMPOSED. SUCH PROVISIONS SHALL APPLY  WITH  THE
 SAME  FORCE  AND  EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN
 SET FORTH IN FULL  IN  THIS  ARTICLE  EXCEPT  TO  THE  EXTENT  THAT  ANY
 PROVISION  IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS
 NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE.
   (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
 THE EXEMPTIONS PROVIDED IN PARAGRAPH TEN OF SUBDIVISION (A)  OF  SECTION
 ELEVEN  HUNDRED  FIFTEEN  OF THIS CHAPTER, AND THE PROVISIONS OF SECTION
 ELEVEN HUNDRED SIXTEEN, EXCEPT THOSE PROVIDED IN  PARAGRAPHS  ONE,  TWO,
 THREE AND SIX OF SUBDIVISION (A) OF SUCH SECTION, SHALL NOT APPLY TO THE
 TAXES IMPOSED BY THIS ARTICLE.
   (C)  NOTWITHSTANDING  THE PROVISIONS OF THIS SECTION OR SECTION ELEVEN
 HUNDRED FORTY-SIX OF THIS CHAPTER, THE  COMMISSIONER MAY, IN HIS OR  HER
 DISCRETION,  PERMIT  THE COMMISSIONER OF HEALTH OR HIS OR HER AUTHORIZED
 REPRESENTATIVE TO INSPECT ANY RETURN RELATED TO THE TAX IMPOSED BY  THIS
 ARTICLE  AND  MAY FURNISH TO THE  COMMISSIONER OF HEALTH ANY SUCH RETURN
 OR SUPPLY HIM OR HER WITH INFORMATION CONCERNING AN ITEM   CONTAINED  IN

 A. 2009--B                         78
 
 ANY  SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF A LIABILITY UNDER
 THIS ARTICLE.
   §  1185.  CRIMINAL PENALTIES. THE CRIMINAL PENALTIES IN SECTIONS EIGH-
 TEEN HUNDRED ONE THROUGH EIGHTEEN   HUNDRED SEVEN AND  EIGHTEEN  HUNDRED
 SEVENTEEN  OF  THIS  CHAPTER  SHALL  APPLY TO THIS ARTICLE WITH THE SAME
 FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE  PROVISIONS  HAD  BEEN  SET
 FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS
 EITHER  INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT
 TO THE TAXES IMPOSED BY THIS ARTICLE.
   § 1186. DEPOSIT AND DISPOSITION OF REVENUE. THE TAXES,  INTEREST,  AND
 PENALTIES  IMPOSED  BY  THIS  ARTICLE  AND  COLLECTED OR RECEIVED BY THE
 COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK-
 ING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE  COMPTROLLER,
 TO  THE  CREDIT  OF THE COMPTROLLER IN TRUST FOR THE TOBACCO CONTROL AND
 INSURANCE INITIATIVES POOL ESTABLISHED BY SECTION NINETY-TWO-DD  OF  THE
 STATE  FINANCE  LAW  AND  DISTRIBUTED  BY  THE COMMISSIONER OF HEALTH IN
 ACCORDANCE WITH SECTION  TWENTY-EIGHT  HUNDRED  SEVEN-V  OF  THE  PUBLIC
 HEALTH LAW. SUCH DEPOSITS WILL BE KEPT SEPARATE AND APART FROM ALL OTHER
 MONEY  IN  THE  POSSESSION  OF  THE  COMPTROLLER.  THE COMPTROLLER SHALL
 REQUIRE ADEQUATE SECURITY FROM ALL SUCH  DEPOSITORIES.    OF  THE  TOTAL
 REVENUE  COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER SHALL
 RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
 REFUNDS UNDER THIS ARTICLE. PROVIDED, HOWEVER THAT THE  COMMISSIONER  IS
 AUTHORIZED  AND  DIRECTED  TO DEDUCT FROM THE AMOUNTS HE OR SHE RECEIVES
 FROM THE REGISTRATION FEES UNDER SECTION ELEVEN HUNDRED EIGHTY-THREE  OF
 THIS  ARTICLE,  BEFORE  DEPOSIT  INTO  THE TOBACCO CONTROL AND INSURANCE
 INITIATIVES POOL, A REASONABLE AMOUNT NECESSARY TO EFFECTUATE REFUNDS OF
 APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE  THE  DEPARTMENT  FOR  THE
 COSTS  INCURRED  TO ADMINISTER, COLLECT AND DISTRIBUTE THE TAXES IMPOSED
 BY THIS ARTICLE.
   § 18. Subdivision (a) of section 92-dd of the state  finance  law,  as
 amended  by  section  3  of part T of chapter 61 of the laws of 2011, is
 amended to read as follows:
   (a) On and after April first,  two  thousand  five,  such  fund  shall
 consist  of  the revenues heretofore and hereafter collected or required
 to be deposited pursuant to paragraph (a)  of  subdivision  eighteen  of
 section  twenty-eight hundred seven-c, and sections twenty-eight hundred
 seven-j, twenty-eight hundred seven-s and twenty-eight  hundred  seven-t
 of the public health law, subdivision (b) of section four hundred eight-
 y-two  AND SECTION ELEVEN HUNDRED EIGHTY-SIX of the tax law and required
 to be credited to the tobacco control and  insurance  initiatives  pool,
 subparagraph  (O)  of  paragraph  four of subsection (j) of section four
 thousand three hundred one of the insurance law, section twenty-seven of
 part A of chapter one of the laws of two  thousand  two  and  all  other
 moneys  credited  or  transferred  thereto from any other fund or source
 pursuant to law.
   § 19. Severability clause. If any clause, sentence, paragraph,  subdi-
 vision,  section  or  part of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.

 A. 2009--B                         79
 
   § 20. This act shall take effect on  the  one  hundred  eightieth  day
 after  it shall have become a law; provided, however that section seven-
 teen of this act shall take effect on the first day of a quarterly peri-
 od described in subdivision (b) of section 1136  of  the  tax  law  next
 commencing  at least one hundred eighty days after this act shall become
 a law, and shall apply to sales and uses of vapor products on  or  after
 such date.
 
                                  PART VV
 
                           Intentionally Omitted
 
                                  PART WW
 
   Section  1.  Section  1166-a  of the tax law, as added by section 1 of
 part F of chapter 25 of the laws of 2009, is amended to read as follows:
   § 1166-a. Special supplemental tax on passenger car rentals WITHIN THE
 METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (a) In  addition  to  the
 tax  imposed  under  section eleven hundred sixty of this article and in
 addition to any tax imposed under any other  article  of  this  chapter,
 there  is  hereby  imposed  and there shall be paid a tax at the rate of
 [five] SIX percent upon the receipts from every rental  of  a  passenger
 car which is a retail sale of such passenger car within the metropolitan
 commuter  transportation district as defined in [subdivision] SUBSECTION
 (a) of section eight hundred of this chapter.
   (b) Except to the extent that a  passenger  car  rental  described  in
 subdivision  (a)  of this section, OR SECTION ELEVEN HUNDRED SIXTY-SIX-B
 OF THIS ARTICLE, has already been or will be subject to the tax  imposed
 under such subdivision OR SECTION and except as otherwise exempted under
 this article, there is hereby imposed on every person and there shall be
 paid  a use tax for the use within the metropolitan commuter transporta-
 tion district as defined in  [subdivision]  SUBSECTION  (a)  of  section
 eight  hundred  of this chapter; of any passenger car rented by the user
 [which] THAT is a purchase at retail of  such  passenger  car,  but  not
 including  any  lease  of  a  passenger  car to which subdivision (i) of
 section eleven hundred eleven of this chapter applies. For  purposes  of
 this [paragraph] SUBDIVISION, the tax shall be at the rate of [five] SIX
 percent  of  the  consideration given or contracted to be given for such
 property, or for the use of such property,  including  any  charges  for
 shipping  or delivery as described in paragraph three of subdivision (b)
 of section eleven hundred one of this chapter, but excluding any  credit
 for tangible personal property accepted in part payment and intended for
 resale.
   §  2. The tax law is amended by adding a new section 1166-b to read as
 follows:
   § 1166-B. SPECIAL SUPPLEMENTAL TAX ON PASSENGER CAR RENTALS OUTSIDE OF
 THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (A)  IN  ADDITION  TO
 THE  TAX  IMPOSED UNDER SECTION ELEVEN HUNDRED SIXTY OF THIS ARTICLE AND
 IN ADDITION TO ANY TAX IMPOSED UNDER ANY OTHER ARTICLE OF THIS  CHAPTER,
 THERE IS HEREBY IMPOSED AND THERE SHALL BE PAID A TAX AT THE RATE OF SIX
 PERCENT  UPON  THE RECEIPTS FROM EVERY RENTAL OF A PASSENGER CAR THAT IS
 NOT SUBJECT TO THE TAX DESCRIBED IN SECTION ELEVEN  HUNDRED  SIXTY-SIX-A
 OF THIS ARTICLE, BUT WHICH IS A RETAIL SALE OF SUCH PASSENGER CAR WITHIN
 THE STATE.
   (B)  EXCEPT  TO  THE  EXTENT  THAT A PASSENGER CAR RENTAL DESCRIBED IN
 SUBDIVISION  (A)  OF  THIS  SECTION  OR    IN  SECTION  ELEVEN   HUNDRED

 A. 2009--B                         80
 
 SIXTY-SIX-A OF THIS ARTICLE, HAS ALREADY BEEN SUBJECT TO THE TAX IMPOSED
 UNDER  SUCH  SUBDIVISION  OR  SECTION,  AND EXCEPT AS OTHERWISE EXEMPTED
 UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED ON EVERY  PERSON  AND  THERE
 SHALL  BE  PAID  A USE TAX FOR THE USE WITHIN THE STATE OF ANY PASSENGER
 CAR RENTED BY THE USER THAT IS A PURCHASE AT RETAIL  OF  SUCH  PASSENGER
 CAR, BUT NOT INCLUDING ANY LEASE OF A PASSENGER CAR TO WHICH SUBDIVISION
 (I)  OF  SECTION  ELEVEN  HUNDRED  ELEVEN  OF  THIS CHAPTER APPLIES. FOR
 PURPOSES OF THIS SUBDIVISION, THE TAX  SHALL  BE  AT  THE  RATE  OF  SIX
 PERCENT  OF  THE  CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH
 PROPERTY, OR FOR THE USE OF SUCH PROPERTY,  INCLUDING  ANY  CHARGES  FOR
 SHIPPING  OR DELIVERY AS DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (B)
 OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, BUT EXCLUDING ANY  CREDIT
 FOR TANGIBLE PERSONAL PROPERTY ACCEPTED IN PART PAYMENT AND INTENDED FOR
 RESALE.
   § 3. Section 1167 of the tax law, as amended by section 3 of part F of
 chapter 25 of the laws of 2009, is amended to read as follows:
   §  1167.  Deposit  and disposition of revenue. All taxes, interest and
 penalties collected or received by the commissioner under  this  article
 shall be deposited and disposed of pursuant to the provisions of section
 one  hundred  seventy-one-a of this chapter, except that after reserving
 amounts in accordance with such section  one  hundred  seventy-one-a  of
 this  chapter,  the  remainder  shall  be paid by the comptroller to the
 credit of the highway and  bridge  trust  fund  established  by  section
 eighty-nine-b of the state finance law, provided, however[,]: (A) taxes,
 interest  and penalties collected or received pursuant to section eleven
 hundred sixty-six-a of this article shall be paid to the credit  of  the
 metropolitan transportation authority aid trust account of the metropol-
 itan  transportation  authority financial assistance fund established by
 section ninety-two-ff of the state finance law; AND (B) TAXES,  INTEREST
 AND  PENALTIES  COLLECTED OR RECEIVED PURSUANT TO SECTION ELEVEN HUNDRED
 SIXTY-SIX-B OF THIS ARTICLE SHALL BE PAID TO THE CREDIT  OF  THE  PUBLIC
 TRANSPORTATION  SYSTEMS  OPERATING  ASSISTANCE  ACCOUNT  ESTABLISHED  BY
 SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW.
   § 4. This act shall take effect June  1,  2019,  and  shall  apply  to
 rentals  of  passenger cars commencing on and after such date whether or
 not under a prior contract; provided, however where such  passenger  car
 rentals  are  billed  on a monthly, quarterly or other period basis, the
 tax imposed by this act shall apply to the rental  for  such  period  if
 more  than  half of the days included in such period are days subsequent
 to such effective date.
 
                                  PART XX
 
                           Intentionally Omitted
 
                                  PART YY
 
   Section 1. The opening paragraph of subdivision 7 of  section  221  of
 the racing, pari-mutuel wagering and breeding law, as amended by section
 1  of  part  NN of chapter 59 of the laws of 2018, is amended to read as
 follows:
   In order to pay the costs of the insurance required  by  this  section
 and  by  the workers' compensation law and to carry out its other powers
 and duties and to pay for any of its  liabilities  under  section  four-
 teen-a  of  the  workers'  compensation  law, the New York Jockey Injury
 Compensation Fund, Inc. shall ascertain the total funding necessary  and

 A. 2009--B                         81
 
 establish  the  sums  that  are  to  be  paid by all owners and trainers
 licensed or required to be licensed under section two hundred twenty  of
 this  article,  to obtain the total funding amount required annually. In
 order to provide that any sum required to be paid by an owner or trainer
 is  equitable,  the fund shall establish payment schedules which reflect
 such  factors  as  are  appropriate,  including  where  applicable,  the
 geographic  location  of  the  racing  corporation at which the owner or
 trainer participates, the duration of such participation, the amount  of
 any purse earnings, the number of horses involved, or such other factors
 as the fund shall determine to be fair, equitable and in the best inter-
 ests  of  racing.  In no event shall the amount deducted from an owner's
 share of purses exceed two per centum; provided, however, for two  thou-
 sand  [eighteen]  NINETEEN  THROUGH TWO THOUSAND TWENTY-ONE the New York
 Jockey Injury Compensation Fund, Inc.  may use up to  two  million  FIVE
 HUNDRED THOUSAND dollars from the account established pursuant to subdi-
 vision  nine  of  section  two  hundred eight of this article to pay the
 annual costs required by this section and the funds  from  such  account
 shall  not  count  against the two per centum of purses deducted from an
 owner's share of purses. The amount deducted from an  owner's  share  of
 purses  shall  not exceed one per centum after April first, two thousand
 twenty. In the cases of multiple ownerships and limited  racing  appear-
 ances, the fund shall equitably adjust the sum required.
   §  2.  Paragraph  (a)  of  subdivision 9 of section 208 of the racing,
 pari-mutuel wagering and breeding law, as amended by section 2  of  part
 NN of chapter 59 of the laws of 2018, is amended to read as follows:
   (a)  The  franchised corporation shall maintain a separate account for
 all funds held on deposit in trust by  the  corporation  for  individual
 horsemen's  accounts.  Purse  funds  shall be paid by the corporation as
 required to meet its purse payment obligations. Funds held in horsemen's
 accounts shall only be released or applied as requested and directed  by
 the  individual  horseman.  For two thousand [eighteen] NINETEEN THROUGH
 TWO THOUSAND TWENTY-ONE the New York Jockey  Injury  Compensation  Fund,
 Inc.  may  use  up to two million FIVE HUNDRED THOUSAND dollars from the
 account established pursuant to this subdivision to pay the annual costs
 required by section two hundred twenty-one of this article.
   § 3. This act shall take effect immediately.
 
                                  PART ZZ
 
   Section 1. Subdivisions 1, 3 and 5 of section 171-v of the tax law, as
 added by section 1 of part P of chapter 59 of  the  laws  of  2013,  are
 amended to read as follows:
   (1)  The  commissioner  shall  enter into a written agreement with the
 commissioner of motor vehicles, which shall set forth the procedures for
 the two departments to cooperate in a program to improve tax  collection
 through  the  suspension of drivers' licenses of taxpayers with past-due
 tax liabilities equal to or in excess of ten thousand dollars MULTIPLIED
 BY THE APPLICABLE INFLATION  ADJUSTMENT.    For  the  purposes  of  this
 section,  the  term  "tax liabilities" shall mean any tax, surcharge, or
 fee administered by the commissioner, or any penalty or interest due  on
 these  amounts  owed  by an individual with a New York driver's license,
 the term "driver's license" means any license issued by  the  department
 of  motor  vehicles, except for a commercial driver's license as defined
 in section five hundred one-a of the vehicle and traffic  law,  and  the
 term  "past-due  tax liabilities" means any tax liability or liabilities
 which have become fixed and final such that the taxpayer no  longer  has

 A. 2009--B                         82

 any  right  to  administrative  or  judicial review, AND THE "APPLICABLE
 INFLATION ADJUSTMENT" FOR A CALENDAR YEAR SHALL BE DETERMINED UNDER  THE
 PRINCIPLES  OF  SECTION  7345(F)  OF  THE INTERNAL REVENUE CODE OF 1986,
 USING THE CALENDAR YEAR OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS
 OF  TWO  THOUSAND  NINETEEN  WHICH  AMENDED THIS SUBDIVISION AS THE BASE
 PERIOD. THE TEN THOUSAND DOLLAR LIMITATION IN THIS SUBDIVISION SHALL NOT
 APPLY TO A TAXPAYER THAT THE COMMISSIONER DETERMINES HAS TAKEN  AFFIRMA-
 TIVE  STEPS  TO  EVADE OR AVOID THE COLLECTION OF TAX, SUCH AS BY HIDING
 ASSETS.
   (3) The department shall provide notice to the taxpayer of his or  her
 inclusion  in  the  license  suspension program no later than sixty days
 prior to the date the department intends to inform the  commissioner  of
 motor  vehicles  of  the  taxpayer's  inclusion. However, no such notice
 shall be issued to a taxpayer: (I) whose wages are  being  garnished  by
 the  department  for the payment of past-due tax liabilities or past-due
 child support or combined child and spousal support  arrears;  (II)  WHO
 RECEIVES  PUBLIC  ASSISTANCE  OR  SUPPLEMENTAL SECURITY INCOME; OR (III)
 WHOSE INCOME DOES NOT EXCEED TWO HUNDRED FIFTY PERCENT  OF  THE  POVERTY
 LEVEL AS REPORTED BY THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES
 OR ANY SUCCESSOR AGENCY. Notice shall be provided by first class mail to
 the  taxpayer's  last known address as such address appears in the elec-
 tronic systems or records of the department. Such notice shall include:
   (a) a clear statement of the past-due tax  liabilities  along  with  a
 statement  that  the department shall provide to the department of motor
 vehicles the taxpayer's name, social security number and any other iden-
 tifying information necessary for the purpose of suspending his  or  her
 driver's  license  pursuant  to  this  section and subdivision four-f of
 section five hundred ten of the vehicle and traffic law sixty days after
 the mailing or sending of such notice to the taxpayer;
   (b) a statement that the taxpayer may avoid suspension of his  or  her
 license by fully satisfying the past-due tax liabilities [or], by making
 payment  arrangements satisfactory to the commissioner, [and information
 as to how] BY DEMONSTRATING ANY OF THE GROUNDS FOR CHALLENGE  SET  FORTH
 IN  SUBDIVISION  FIVE  OF  THIS  SECTION,  OR BY PRESENTING FACTS TO THE
 COMMISSIONER RESULTING IN THE COMMISSIONER WAIVING SUSPENSION OF HIS  OR
 HER  LICENSE  BASED  ON  THE  EQUITIES OF THE CASE. SUCH STATEMENT SHALL
 INCLUDE INFORMATION REGARDING ALL OF THE AGENCY'S PROGRAMS THROUGH WHICH
 the taxpayer can pay the past-due tax  liabilities  to  the  department,
 enter into a payment arrangement or request additional information NEED-
 ED TO CHALLENGE THE SUSPENSION UNDER SUBDIVISION FIVE OF THIS SECTION OR
 DEMONSTRATE THE EQUITIES OF THE CASE;
   (c)  a  statement  that  the taxpayer's right to protest the notice is
 limited to raising issues set forth in subdivision five of this section;
   (d) a statement that the suspension of the taxpayer's driver's license
 shall continue until the past-due tax liabilities are fully paid or  the
 taxpayer  makes  payment  arrangements satisfactory to the commissioner;
 and
   (e) any other information that the commissioner deems necessary.
   (5) Notwithstanding any other provision of law, and except as  specif-
 ically  provided  herein, the taxpayer shall have no right to commence a
 court action or proceeding or to any other legal  recourse  against  the
 department or the department of motor vehicles regarding a notice issued
 by  the  department  pursuant  to  this  section and the referral by the
 department of any taxpayer with past-due tax liabilities to the  depart-
 ment  of  motor  vehicles  pursuant  to  this section for the purpose of
 suspending the taxpayer's driver's license. A taxpayer  may  only  chal-

 A. 2009--B                         83

 lenge such suspension or referral on the grounds that (i) the individual
 to  whom  the notice was provided is not the taxpayer at issue; (ii) the
 past-due tax liabilities were satisfied; (iii) the taxpayer's wages  are
 being  garnished  by  the department for the payment of the past-due tax
 liabilities at issue or for past-due child support or combined child and
 spousal support arrears; (iv) the taxpayer's wages are  being  garnished
 for  the payment of past-due child support or combined child and spousal
 support arrears pursuant to  an  income  execution  issued  pursuant  to
 section  five  thousand  two hundred forty-one of the civil practice law
 and rules; (v) the taxpayer's driver's license is a commercial  driver's
 license  as  defined  in  section  five hundred one-a of the vehicle and
 traffic law; [or] (vi) the department incorrectly found that the taxpay-
 er has failed to comply with the terms of  a  payment  arrangement  made
 with  the  commissioner  more than once within a twelve month period for
 the purposes of subdivision three of this section;  (VII)  THE  TAXPAYER
 RECEIVES  PUBLIC  ASSISTANCE OR SUPPLEMENTAL SECURITY INCOME; (VIII) THE
 TAXPAYER'S INCOME DOES NOT EXCEED  TWO  HUNDRED  FIFTY  PERCENT  OF  THE
 POVERTY  LEVEL AS REPORTED BY THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN
 SERVICES OR ANY SUCCESSOR AGENCY; OR (IX) PAYMENT OF THE  PAST  DUE  TAX
 LIABILITIES WILL CREATE A HARDSHIP FOR THE TAXPAYER IN MEETING NECESSARY
 LIVING EXPENSES.
   However,  nothing  in this subdivision is intended to limit a taxpayer
 from seeking relief PURSUANT TO  AN  OFFER  IN  COMPROMISE  PURSUANT  TO
 SUBDIVISION FIFTEENTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS ARTICLE
 OR  from  joint  and  several  liability pursuant to section six hundred
 fifty-four of this chapter, to the extent that he  or  she  is  eligible
 pursuant  to  [that  subdivision]  SUCH  SECTION, or establishing to the
 department that the enforcement of the underlying  tax  liabilities  has
 been  stayed by the filing of a petition pursuant to the Bankruptcy Code
 of 1978 (Title Eleven of the United States Code).
   § 2. The commissioner  of  taxation  and  finance  is  authorized  and
 directed  to promulgate any rules and regulations necessary to implement
 the provisions of this act in accordance  with  the  provisions  of  the
 state administrative procedure act.
   § 3. This act shall take effect immediately.

                                 PART AAA
 
                           Intentionally Omitted
 
                                 PART BBB
 
   Section  1.  The  tax law is amended by adding a new section 1402-b to
 read as follows:
   § 1402-B. ADDITIONAL TRANSFER TAX ON CONVEYANCES FOR CONSIDERATION  OF
 FIVE  MILLION  DOLLARS  OR MORE. (A) IN ADDITION TO THE TAXES IMPOSED BY
 SECTIONS FOURTEEN HUNDRED TWO AND FOURTEEN HUNDRED TWO-A OF  THIS  ARTI-
 CLE,  A  TAX  IS  HEREBY  IMPOSED ON EACH CONVEYANCE OF REAL PROPERTY OR
 INTEREST THEREIN WHEN THE CONSIDERATION FOR  THE  ENTIRE  CONVEYANCE  IS
 FIVE  MILLION  DOLLARS  OR  MORE.   THE RATE OF SUCH TAX SHALL BE THREE-
 TENTHS PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO  THE
 REAL  PROPERTY  WHEN  SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS NO
 LESS THAN FIVE MILLION DOLLARS BUT NO MORE THAN TEN MILLION DOLLARS. THE
 RATE OF SUCH TAX SHALL BE ONE-HALF PERCENT OF THE CONSIDERATION OR  PART
 THEREOF  ATTRIBUTABLE  TO  THE REAL PROPERTY WHEN SUCH CONSIDERATION FOR
 THE ENTIRE CONVEYANCE IS NO LESS THAN TEN MILLION DOLLARS  BUT  NO  MORE

 A. 2009--B                         84
 
 THAN  FIFTY  MILLION DOLLARS. THE RATE OF SUCH TAX SHALL BE SEVEN-TENTHS
 PERCENT OF THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE  TO  THE  REAL
 PROPERTY  WHEN  SUCH  CONSIDERATION FOR THE ENTIRE CONVEYANCE IS NO LESS
 THAN FIFTY MILLION DOLLARS BUT NO MORE THAN ONE HUNDRED MILLION DOLLARS.
 THE  RATE  OF SUCH TAX SHALL BE NINE-TENTHS PERCENT OF THE CONSIDERATION
 OR PART THEREOF ATTRIBUTABLE TO THE REAL PROPERTY  WHEN  SUCH  CONSIDER-
 ATION  FOR  THE  ENTIRE  CONVEYANCE  IS NO LESS THAN ONE HUNDRED MILLION
 DOLLARS BUT NO MORE THAN TWO HUNDRED AND FIFTY MILLION DOLLARS. THE RATE
 OF SUCH TAX SHALL BE ONE AND ONE-TENTH PERCENT OF THE  CONSIDERATION  OR
 PART  THEREOF  ATTRIBUTABLE TO THE REAL PROPERTY WHEN SUCH CONSIDERATION
 FOR THE ENTIRE CONVEYANCE IS NO LESS  THAN  TWO  HUNDRED  FIFTY  MILLION
 DOLLARS  BUT NO MORE THAN FIVE HUNDRED MILLION DOLLARS. THE RATE OF SUCH
 TAX SHALL BE ONE AND THREE-TENTHS PERCENT OF THE CONSIDERATION  OR  PART
 THEREOF  ATTRIBUTABLE  TO  THE REAL PROPERTY WHEN SUCH CONSIDERATION FOR
 THE ENTIRE CONVEYANCE IS NO LESS THAN FIVE HUNDRED MILLION  DOLLARS  BUT
 NO  MORE THAN ONE BILLION DOLLARS. THE RATE OF SUCH TAX SHALL BE ONE AND
 ONE-HALF PERCENT OF THE CONSIDERATION OR PART  THEREOF  ATTRIBUTABLE  TO
 THE  REAL  PROPERTY WHEN SUCH CONSIDERATION FOR THE ENTIRE CONVEYANCE IS
 NO LESS THAN ONE BILLION DOLLARS.
   (B) THE TAXES, INTEREST, AND PENALTIES IMPOSED  BY  THIS  SECTION  AND
 COLLECTED  OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY WITH
 SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST  COMPANIES,  AS  MAY  BE
 DESIGNATED  BY  THE  COMPTROLLER,  TO THE CREDIT OF THE COMPTROLLER.  AN
 ACCOUNT MAY BE ESTABLISHED IN ONE OR MORE  OF  SUCH  DEPOSITORIES.  SUCH
 DEPOSITS  WILL  BE  KEPT  SEPARATE AND APART FROM ALL OTHER MONEY IN THE
 POSSESSION OF THE COMPTROLLER.  THE  COMPTROLLER SHALL REQUIRE  ADEQUATE
 SECURITY  FROM  ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR
 RECEIVED UNDER THIS SECTION, THE COMPTROLLER SHALL RETAIN SUCH AMOUNT AS
 THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR  REFUNDS  UNDER  THIS
 SECTION.  THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE
 AMOUNT SHE OR HE RECEIVES UNDER THIS SECTION, BEFORE  DEPOSIT  INTO  THE
 TRUST ACCOUNTS DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECES-
 SARY  TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIM-
 BURSE THE DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER,  COLLECT  AND
 DISTRIBUTE THE TAXES IMPOSED BY THIS SECTION.
   (C) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF SECTION FOUR-
 TEEN  HUNDRED  FOUR  OF THIS ARTICLE, THE ADDITIONAL TAX IMPOSED BY THIS
 SECTION SHALL BE PAID BY THE GRANTEE. IF THE GRANTEE HAS FAILED  TO  PAY
 THE TAX IMPOSED BY THIS ARTICLE AT THE TIME REQUIRED BY SECTION FOURTEEN
 HUNDRED  TEN  OF THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX,
 THE GRANTOR SHALL HAVE THE DUTY TO PAY THE TAX. WHERE  THE  GRANTOR  HAS
 THE  DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY, SUCH TAX
 SHALL BE THE JOINT AND SEVERAL LIABILITY OF THE GRANTOR AND THE GRANTEE.
   (D) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL  THE  PROVISIONS
 OF  THIS  ARTICLE  RELATING  TO  OR  APPLICABLE  TO  THE ADMINISTRATION,
 COLLECTION, DETERMINATION AND DISTRIBUTION OF THE TAX IMPOSED BY SECTION
 FOURTEEN HUNDRED TWO OF THIS ARTICLE SHALL  APPLY  TO  THE  TAX  IMPOSED
 UNDER  THE  AUTHORITY  OF THIS SECTION WITH SUCH MODIFICATIONS AS MAY BE
 NECESSARY TO  ADAPT  SUCH  LANGUAGE  TO  THE  TAX  SO  AUTHORIZED.  SUCH
 PROVISIONS  SHALL  APPLY  WITH  THE  SAME  FORCE  AND EFFECT AS IF THOSE
 PROVISIONS HAD BEEN SET FORTH IN THIS SECTION EXCEPT TO THE EXTENT  THAT
 ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR
 NOT RELEVANT TO THE TAX AUTHORIZED BY THIS SECTION.
   §  2.  This  act  shall  take effect April 1, 2019, and shall apply to
 conveyances occurring on or after the thirtieth day after this act shall
 have become a law.

 A. 2009--B                         85
 
                                 PART CCC
 
   Section  1.  The  real  property  tax  law  is amended by adding a new
 section 307-b to read as follows:
   § 307-B. ADDITIONAL PROPERTY  TAX  ON  CERTAIN  NON-PRIMARY  RESIDENCE
 PROPERTIES IN A CITY WITH A POPULATION OF ONE MILLION OR MORE. 1. GENER-
 ALLY.  NOTWITHSTANDING  ANY  PROVISION OF ANY GENERAL, SPECIFIC OR LOCAL
 LAW TO THE CONTRARY, ANY CITY WITH A POPULATION OF ONE MILLION  OR  MORE
 IS  HEREBY  AUTHORIZED  AND  EMPOWERED  TO ADOPT AND AMEND LOCAL LAWS IN
 ACCORDANCE WITH THIS SECTION IMPOSING  AN  ADDITIONAL  PROPERTY  TAX  ON
 CERTAIN RESIDENTIAL PROPERTIES.
   2. DEFINITIONS. AS USED IN THIS SECTION: (A) "COMMISSIONER OF FINANCE"
 MEANS  THE  COMMISSIONER OF FINANCE OF A CITY HAVING A POPULATION OF ONE
 MILLION OR MORE, OR HIS OR HER DESIGNEE.
   (B) "DEPARTMENT OF FINANCE" MEANS THE DEPARTMENT OF FINANCE OF A  CITY
 HAVING A POPULATION OF ONE MILLION OR MORE.
   (C)  "MARKET VALUE" SHALL MEAN THE CURRENT MONETARY VALUE OF THE PROP-
 ERTY, USING A COMPARABLE SALE-BASED VALUATION METHOD, AS  DETERMINED  BY
 THE DEPARTMENT OF FINANCE.
   3.  ADDITIONAL TAX.   A LOCAL LAW ENACTED PURSUANT TO THIS SECTION MAY
 PROVIDE FOR A REAL PROPERTY TAX IN ACCORDANCE WITH THE  FOLLOWING  TABLE
 FOR FISCAL YEARS BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY:

 IF THE MARKET VALUE OF THE              THE TAX IS:
 PROPERTY IS:
 OVER $5,000,000 BUT NOT                 $0 PLUS .5% OF EXCESS
 OVER $6,000,000                         OVER $5,000,000
 OVER $6,000,000                         $5,000 PLUS 1% OF EXCESS
 BUT NOT OVER $10,000,000                OVER $6,000,000
 OVER $10,000,000 BUT NOT                $45,000 PLUS 1.5% OF EXCESS
 OVER $15,000,000                        OVER $10,000,000
 OVER $15,000,000 BUT NOT                $120,000 PLUS 2% OF EXCESS
 OVER $20,000,000                        OVER $15,000,000
 OVER $20,000,000 BUT NOT                $220,000 PLUS 3% OF EXCESS
 OVER $25,000,000                        OVER $20,000,000
 OVER $25,000,000                        $370,000 PLUS 4% OF EXCESS
                                         OVER $25,000,000
 
   4.  PROPERTY  SUBJECT TO ADDITIONAL TAX.  SUCH TAX SHALL BE IMPOSED ON
 CLASS ONE PROPERTIES, AS  THAT  TERM  IS  DEFINED  IN  SECTION  EIGHTEEN
 HUNDRED  TWO OF THIS CHAPTER, EXCLUDING VACANT LAND, AND ALL OTHER RESI-
 DENTIAL REAL PROPERTY HELD IN CONDOMINIUM OR COOPERATIVE FORM OF  OWNER-
 SHIP,  THAT  HAS  A MARKET VALUE OF OVER FIVE MILLION DOLLARS AND IS NOT
 THE PRIMARY RESIDENCE OF THE OWNER OR OWNERS OF SUCH  PROPERTY,  OR  THE
 PRIMARY RESIDENCE OF THE PARENT OR CHILD OF SUCH OWNER OR OWNERS.
   5.  PRIMARY  RESIDENCE AND/OR RELATIONSHIP TO OWNER OR OWNERS. THE TAX
 SHALL BE A LIEN ON THE SUBJECT PROPERTY AND COLLECTED IN THE SAME MANNER
 AS ANY OTHER TAXES LEVIED ON REAL PROPERTY.  PROOF OF PRIMARY  RESIDENCE
 AND  THE  RESIDENT'S  OR  RESIDENTS' RELATIONSHIP TO THE OWNER OR OWNERS
 SHALL BE IN THE FORM OF A CERTIFICATION AS REQUIRED BY LOCAL LAW OR  THE
 RULES  OF THE COMMISSIONER.  NOTWITHSTANDING THE FORMER, PROPERTY OWNERS
 WHO RECEIVE THE STAR EXEMPTION, OR OTHER EXEMPTION  FROM  REAL  PROPERTY
 TAX  ADMINISTERED  BY  THE DEPARTMENT OF FINANCE ON THE SUBJECT PROPERTY
 FOR WHICH PRIMARY RESIDENCY IS A REQUIREMENT, SHALL NOT BE  REQUIRED  TO
 FILE AN ADDITIONAL CERTIFICATION OF PROOF OF PRIMARY RESIDENCE.

 A. 2009--B                         86
 
   6.  RULES.  THE DEPARTMENT OF FINANCE OF ANY CITY ENACTING A LOCAL LAW
 PURSUANT TO THIS SECTION SHALL HAVE, IN ADDITION TO ANY OTHER FUNCTIONS,
 POWERS AND DUTIES WHICH HAVE BEEN OR MAY BE CONFERRED ON IT BY LAW,  THE
 POWER  TO  MAKE  AND  PROMULGATE RULES TO CARRY OUT THE PURPOSES OF THIS
 SECTION  INCLUDING,  BUT NOT LIMITED TO, RULES RELATING THE TIMING, FORM
 AND MANNER OF ANY CERTIFICATION REQUIRED  TO  BE  SUBMITTED  UNDER  THIS
 SECTION.
   7.  PENALTIES.  (A)  NOTWITHSTANDING  ANY  PROVISION  OF  ANY GENERAL,
 SPECIAL OR LOCAL LAW TO THE  CONTRARY,  AN  OWNER  OR  OWNERS  SHALL  BE
 PERSONALLY  LIABLE  FOR ANY TAXES OWED PURSUANT TO THIS SECTION WHENEVER
 SUCH OWNER OR OWNERS FAIL TO COMPLY WITH THIS SECTION OR THE  LOCAL  LAW
 OR  RULES  PROMULGATED  THEREUNDER,  OR  MAKES  SUCH FALSE OR MISLEADING
 STATEMENT OR OMISSION AND THE COMMISSIONER DETERMINES THAT SUCH ACT  WAS
 DUE  TO THE OWNER OR OWNERS' WILLFUL NEGLECT, OR THAT UNDER SUCH CIRCUM-
 STANCES SUCH ACT CONSTITUTED A  FRAUD  ON  THE  DEPARTMENT.  THE  REMEDY
 PROVIDED  HEREIN  FOR  AN ACTION IN PERSONAM SHALL BE IN ADDITION TO ANY
 OTHER REMEDY OR PROCEDURE FOR THE ENFORCEMENT OF  COLLECTION  OF  DELIN-
 QUENT TAXES PROVIDED BY ANY GENERAL, SPECIAL OR LOCAL LAW.
   (B) IF THE COMMISSIONER SHOULD DETERMINE, AFTER NOTICE AND AN OPPORTU-
 NITY  TO  BE HEARD, WITHIN THREE YEARS FROM THE FILING OF AN APPLICATION
 OR CERTIFICATION PURSUANT TO THIS SECTION, THAT  THERE  WAS  A  MATERIAL
 MISSTATEMENT  ON  SUCH  APPLICATION  OR  CERTIFICATION,  HE OR SHE SHALL
 PROCEED TO IMPOSE A PENALTY TAX AGAINST THE PROPERTY OF UP TO TEN  THOU-
 SAND  DOLLARS,  IN  ACCORDANCE  WITH  THE LOCAL LAW OR RULES PROMULGATED
 HEREUNDER.
   8. CESSATION OF USE. IN THE EVENT THAT A PROPERTY THAT WAS NOT SUBJECT
 TO TAXATION PURSUANT TO THIS SECTION DUE TO THE PROPERTY HAVING BEEN THE
 PRIMARY RESIDENCE OF THE OWNER OR OWNERS, OR THE  PRIMARY  RESIDENCE  OF
 THE PARENT OR CHILD OF SUCH OWNER OR OWNERS, AND SUCH PROPERTY CEASES TO
 BE  USED AS THE PRIMARY RESIDENCE OF SUCH OWNER OR OWNERS OR HIS, HER OR
 THEIR PARENT OR CHILD, SUCH OWNER OR OWNERS SHALL SO NOTIFY THE  COMMIS-
 SIONER OF FINANCE IN A TIME, FORM AND MANNER AS SO REQUIRED BY LOCAL LAW
 OR THE RULES OF THE COMMISSIONER.
   § 2. This act shall take effect immediately.
 
                                 PART DDD
 
   Section  1.  Subparagraph (i) of the opening paragraph of section 1210
 of the tax law is amended by adding a new clause 42 to read as follows:
   (42) THE COUNTY  OF  WESTCHESTER  IS  HEREBY  FURTHER  AUTHORIZED  AND
 EMPOWERED  TO  ADOPT  AND  AMEND  LOCAL  LAWS, ORDINANCES OR RESOLUTIONS
 IMPOSING SUCH TAXES AT A RATE THAT IS  ONE  PERCENT  ADDITIONAL  TO  THE
 THREE  PERCENT  RATE  AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH COUNTY
 FOR THE PERIOD BEGINNING MARCH FIRST, TWO THOUSAND NINETEEN  AND  ENDING
 NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-TWO;
   §  2.  Section 1224 of the tax law is amended by adding a new subdivi-
 sion (jj) to read as follows:
   (JJ) THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE RIGHT TO IMPOSE THE
 ADDITIONAL ONE PERCENT RATE OF TAX WHICH SUCH COUNTY  IS  AUTHORIZED  TO
 IMPOSE  PURSUANT  TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN OF THIS
 ARTICLE. SUCH ADDITIONAL RATE OF TAX SHALL BE IN ADDITION TO  ANY  OTHER
 TAX  WHICH  SUCH  COUNTY  MAY IMPOSE OR MAY BE IMPOSING PURSUANT TO THIS
 ARTICLE OR ANY OTHER LAW AND SUCH ADDITIONAL RATE OF TAX  SHALL  NOT  BE
 SUBJECT  TO  PREEMPTION.  THE  MAXIMUM THREE PERCENT RATE REFERRED TO IN
 THIS SECTION SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDITIONAL ONE
 PERCENT RATE OF TAX WHICH THE COUNTY OF WESTCHESTER  IS  AUTHORIZED  AND

 A. 2009--B                         87
 
 EMPOWERED  TO ADOPT PURSUANT TO SECTION TWELVE HUNDRED TEN OF THIS ARTI-
 CLE.
   §  3. Section 1262-b of the tax law, as amended by section 1 of part A
 of chapter 8 of the laws of 2004, is amended to read as follows:
   § 1262-b. The Westchester county property tax stabilization and relief
 act. (a) Notwithstanding any other provision of law to the contrary,  if
 the  county  of  Westchester  imposes  sales  and compensating use taxes
 pursuant to [subdivision (a)] CLAUSE FORTY-TWO OF  SUBPARAGRAPH  (I)  OF
 THE  OPENING  PARAGRAPH of section twelve hundred ten of this article at
 the rate of [three] FOUR percent:
   (1) The county shall allocate net collections from such taxes  imposed
 at  the rate of one and one-half percent countywide among the cities and
 towns of the county on the basis of the ratio which the  full  valuation
 of  real property in each city or town bears to the aggregate full valu-
 ation of real property in all cities and towns of the county.    Amounts
 so  allocated shall be credited to each of said cities and towns against
 the county taxes levied upon real property in said cities and towns.
   (2) The county shall  allocate  and  credit  or  pay  net  collections
 received  by  the county by reason of its additional one percent rate of
 such taxes on the area of the county outside any city imposing sales and
 compensating use taxes at a rate of one and one-half percent or  greater
 pursuant  to the authority of subdivision (a) or at any rate pursuant to
 the authority of [subdivision (b)] CLAUSE FORTY-TWO OF SUBPARAGRAPH  (I)
 OF  THE  OPENING PARAGRAPH of section twelve hundred ten of this article
 as follows:
   (A) One-third of such net collections shall be allocated and  credited
 in the manner set forth in paragraph one of this subdivision.
   (B)  One-sixth  of  such  net  collections shall be allocated and paid
 quarterly by the county commissioner of finance, in cash, to the several
 school districts in such area of the county outside any such city impos-
 ing sales and compensating use taxes. Such allocation  and  payment,  to
 such  several  school districts, shall be made on the basis of the ratio
 which the population of each such school district bears to the aggregate
 population of all of the school districts in such area. In the  case  of
 school  districts  which  are partially within and partially without the
 county, or partially within or partially without the area of the  county
 outside a city imposing sales and compensating use taxes, the allocation
 and  payment  to each such school district shall be made on the basis of
 the population in such school district in the county, or in such area of
 the county outside a city imposing sales and compensating use taxes,  as
 the case may be. Such populations shall be determined in accordance with
 the  latest  federal  census  or special population census under section
 twenty of the general municipal law completed and published prior to the
 end of the quarter in which such allocation and payment are made,  which
 special  population  census shall include the entire area of the county;
 provided that such special population census shall  not  be  taken  more
 than  once in every two years. A school district split between Westches-
 ter county and another county shall apply such  allocation  and  payment
 solely  to the benefit of the residents of the county in which the sales
 and compensating use taxes are imposed.
   (C) One-half of such net collections shall be allocated and paid quar-
 terly by the county commissioner of finance, in cash, to the cities  not
 imposing  sales and compensating use taxes and to the towns and villages
 on which such additional one percent rate is imposed, on  the  basis  of
 the  ratio  which  the  population of each such city, town or village on
 which such additional one percent rate is imposed bears  to  the  entire

 A. 2009--B                         88
 
 population  of  all such cities, towns and villages in the area on which
 such additional one percent rate is imposed. Such populations  shall  be
 determined in accordance with the latest federal census or special popu-
 lation  census  under  section  twenty  of  the  general  municipal  law
 completed and published prior to the end of the quarter  in  which  such
 allocation  is  made,  which special population census shall include the
 entire area of the county; provided that such special population  census
 shall not be taken more than once in every two years.
   (D)  The  quarterly  allocation  and payment of cash to cities, towns,
 villages and school districts provided  for  under  this  paragraph  and
 under  paragraph  three of this subdivision may be made after payment by
 the state comptroller to the county of the net  collections  subject  to
 such allocation and receipt by the county commissioner of finance of the
 quarterly  settlement  report  issued by the department, and may include
 adjustments for corrections applicable to such allocations.  All  ratios
 established  by the county commissioner of finance with respect to allo-
 cations to cities, towns,  villages  and  school  districts  under  this
 subdivision  shall  be carried to four decimal places. The allocation of
 net collections and payment of cash provided for  under  this  paragraph
 and  under  paragraph  three of this subdivision shall be made to a town
 based upon the population of the town less the population of any village
 therein, provided that a town/village or village/town shall be deemed  a
 village  for  the purpose of determining such allocation. The allocation
 of net collections and payment of cash provided for under this paragraph
 and under paragraph three of this subdivision shall be  applied  by  the
 cities,  towns,  villages and school districts receiving such allocation
 and payment as a credit against the taxes upon real property imposed  by
 such  municipalities  and school districts, respectively. The allocation
 and payment received by towns shall be credited  against  real  property
 taxes  in  either the general fund town-wide or the town outside village
 fund or a combination thereof.
   (3) The county shall  allocate  and  credit  or  pay  net  collections
 received  by  the  county  by  reason of its additional ONE AND one-half
 percent rate of such taxes imposed on the area of the county outside any
 city imposing sales and compensating use taxes at  a  rate  of  one  and
 one-half percent or greater pursuant to the authority of subdivision (a)
 or  at  any rate pursuant to the authority of subdivision (b) of section
 twelve hundred ten of this article as follows:
   (A) Seventy percent of such net collections shall be retained  by  the
 county to be used for any county purpose.
   (B) Ten percent of such net collections shall be allocated and paid in
 the manner set forth in subparagraph (B) of paragraph two of this subdi-
 vision.
   (C) Twenty percent of such net collections shall be allocated and paid
 in  the  manner  set  forth in subparagraph (C) of paragraph two of this
 subdivision.
   (b) Nothing in this section shall be construed to impair the powers of
 a city currently imposing sales and compensating use taxes  pursuant  to
 the authority of section twelve hundred ten of this article from contin-
 uing  to  do  so  in accordance with law. No school district in any city
 imposing such sales and compensating use  taxes  shall  be  entitled  to
 receive  a  cash  allocation and payment under paragraph two or three of
 subdivision (a) of this section. No city, town or village authorized  or
 entitled  to  receive  an allocation under subparagraph (C) of paragraph
 two or subparagraph (C) of paragraph three of subdivision  (a)  of  this

 A. 2009--B                         89
 
 section  shall  be authorized or entitled to receive any cash allocation
 under section twelve hundred sixty-two of this article.
   §  4.  Subdivision  e of section 4 and sections 5, 7 and 16 of chapter
 272 of the laws of 1991, amending the tax law relating to the method  of
 disposition  of  sales  and  compensating use tax revenue in Westchester
 county and enacting the Westchester county spending limitation  act,  as
 amended  by  chapter  81  of  the  laws  of 2017, are amended to read as
 follows:
   e. "Spending limitation" means the maximum amount of  county  spending
 established  in  county fiscal years 1992, 1993, 1994, 1995, 1996, 1997,
 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008,  2009,
 2010,  2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [and], 2020,
 2021 AND 2022.
   § 5. Establishment of annual spending limitation. a. For county fiscal
 years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001,  2002,
 2003,  2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014,
 2015, 2016, 2017, 2018, 2019 [and], 2020, 2021 AND 2022 there  shall  be
 in  effect  an annual spending limitation. The spending limitation shall
 be derived from a fixed percentage reflecting the  ratio  of  base  year
 spending  to  county  personal  income.  County personal income for such
 calculation shall be for the period January 1, 1986 through December 31,
 1986. Such percentage shall be applied to county personal income for the
 period January 1, 1989 through  December  31,  1989,  to  determine  the
 spending limitation for county fiscal year 1992; to determine the spend-
 ing  limitation  for  county  fiscal year 1993, such percentage shall be
 applied to county personal income for the period January 1, 1990 through
 December 31, 1990; to  determine  the  spending  limitation  for  county
 fiscal  year  1994,  such percentage shall be applied to county personal
 income for the period January 1, 1991  through  December  31,  1991;  to
 determine  the  spending  limitation  for  county fiscal year 1995, such
 percentage shall be applied to county personal  income  for  the  period
 January  1,  1992  through  December 31, 1992; to determine the spending
 limitation for county fiscal year 1996, such percentage shall be applied
 to county personal income for the period January 1, 1993 through  Decem-
 ber  31,  1993;  to  determine the spending limitation for county fiscal
 year 1997, such percentage shall be applied to  county  personal  income
 for  the  period January 1, 1994 through December 31, 1994; to determine
 the spending limitation for county fiscal  year  1998,  such  percentage
 shall  be  applied  to  county personal income for the period January 1,
 1995 through December 31, 1995; to determine the spending limitation for
 county fiscal year 1999, such percentage  shall  be  applied  to  county
 personal  income  for  the  period  January 1, 1996 through December 31,
 1996; to determine the spending limitation for county fiscal year  2000,
 such percentage shall be applied to county personal income for the peri-
 od  January 1, 1997 through December 31, 1997; to determine the spending
 limitation for county fiscal year 2001, such percentage shall be applied
 to county personal income for the period January 1, 1998 through  Decem-
 ber  31,  1998;  to  determine the spending limitation for county fiscal
 year 2002, such percentage shall be applied to  county  personal  income
 for  the  period January 1, 1999 through December 31, 1999; to determine
 the spending limitation for county fiscal  year  2003,  such  percentage
 shall  be  applied  to  county personal income for the period January 1,
 2000 through December 31, 2000; to determine the spending limitation for
 county fiscal year 2004, such percentage  shall  be  applied  to  county
 personal  income  for  the  period  January 1, 2001 through December 31,
 2001; to determine the spending limitation for county fiscal year  2005,

 A. 2009--B                         90
 
 such percentage shall be applied to county personal income for the peri-
 od  January 1, 2002 through December 31, 2002; to determine the spending
 limitation for county fiscal year 2006, such percentage shall be applied
 to  county personal income for the period January 1, 2003 through Decem-
 ber 31, 2003; to determine the spending limitation for the county fiscal
 year 2007, such percentage shall be applied to  county  personal  income
 for  the  period January 1, 2004 through December 31, 2004; to determine
 the spending limitation for the county fiscal year 2008, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2005 through December 31, 2005; to determine the spending limitation for
 the  county fiscal year 2009, such percentage shall be applied to county
 personal income for the period January  1,  2006  through  December  31,
 2006;  to  determine  the spending limitation for the county fiscal year
 2010, such percentage shall be applied to county personal income for the
 period January 1, 2007 through  December  31,  2007;  to  determine  the
 spending  limitation  for  the  county fiscal year 2011, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2008 through December 31, 2008; to determine the spending limitation for
 the  county fiscal year 2012, such percentage shall be applied to county
 personal income for the period January  1,  2009  through  December  31,
 2009;  to  determine  the spending limitation for the county fiscal year
 2013, such percentage shall be applied to county personal income for the
 period January 1, 2010 through  December  31,  2010;  to  determine  the
 spending  limitation  for  the  county fiscal year 2014, such percentage
 shall be applied to county personal income for  the  period  January  1,
 2011 through December 31, 2011; to determine the spending limitation for
 the  county fiscal year 2015, such percentage shall be applied to county
 personal income for the period January  1,  2012  through  December  31,
 2012;  to determine the spending limitation for county fiscal year 2016,
 such percentage shall be applied to the county personal income  for  the
 period  January  1,  2013  through  December  31, 2013; to determine the
 spending limitation for the county fiscal  year  2017,  such  percentage
 shall  be  applied  to  county personal income for the period January 1,
 2014 through December 31, 2014; and to determine the spending limitation
 for county fiscal year 2018, such percentage shall  be  applied  to  the
 county  personal  income for the period January 1, 2015 through December
 31, 2015; to determine the spending limitation  for  the  county  fiscal
 year  2019,  such  percentage shall be applied to county personal income
 for the period January 1, 2016 through December 31, 2016; and to  deter-
 mine  the spending limitation for county fiscal year 2020, such percent-
 age shall be applied to the county personal income for the period  Janu-
 ary  1,  2017  through  December 31, 2017; AND TO DETERMINE THE SPENDING
 LIMITATION FOR THE COUNTY FISCAL YEAR 2021,  SUCH  PERCENTAGE  SHALL  BE
 APPLIED TO COUNTY PERSONAL INCOME FOR THE PERIOD JANUARY 1, 2018 THROUGH
 DECEMBER  31,  2018;  AND  TO  DETERMINE THE SPENDING LIMITATION FOR THE
 COUNTY FISCAL YEAR 2022, SUCH PERCENTAGE  SHALL  BE  APPLIED  TO  COUNTY
 PERSONAL  INCOME  FOR  THE  PERIOD  JANUARY 1, 2019 THROUGH DECEMBER 31,
 2019.
   b. The spending limitation shall serve as a statutory  cap  on  county
 spending  to be reflected in the tentative budget as well as the enacted
 budget for county fiscal years beginning in 1992.
   § 7. Mandatory tax reduction. In the event that  the  county  spending
 subject  to the spending limitation exceeds such limitation in the adop-
 tive county budget for county fiscal year 1992, 1993, 1994, 1995,  1996,
 1997,  1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008,

 A. 2009--B                         91
 
 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018,  2019  [or],
 2020, 2021 OR 2022 then section 1262-b of the tax law shall be repealed.
   §  16. This act shall take effect immediately, provided, however, that
 sections one through seven of this act shall be in full force and effect
 until [May 31, 2020, provided, however, that if the county of  Westches-
 ter  imposes the tax authorized by section 1210 of the tax law in excess
 of three percent, then sections one through seven of this act  shall  be
 deemed  repealed; provided that the commissioner of taxation and finance
 shall notify the legislative bill drafting commission upon the repeal of
 section 1262-b of the tax law pursuant to section seven of the Westches-
 ter county spending limitation act in  order  that  the  commission  may
 maintain an accurate and timely effective data base of the official text
 of  laws  of  the  state  of  New  York  in furtherance of effecting the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law] NOVEMBER 30, 2022.
   §  5. This act shall take effect immediately; provided that the amend-
 ments to section 1262-b of the tax law made by section three of this act
 shall not affect the expiration of such section and shall expire  there-
 with;  provided, further, that the amendments to sections 4, 5, and 7 of
 chapter 272 of the laws of 1991 shall not affect the expiration of  such
 sections and shall expire therewith.
 
                                 PART EEE
 
   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:
   § 44. NEW YORK AGRICULTURE AND RURAL JOBS CREDIT. (A) DEFINITIONS. FOR
 THE PURPOSE OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   (1) "AFFILIATE" MEANS A PERSON THAT DIRECTLY,  OR  INDIRECTLY  THROUGH
 ONE  OR  MORE  INTERMEDIARIES,  CONTROLS,  IS CONTROLLED BY, OR IS UNDER
 COMMON CONTROL WITH ANOTHER PERSON. FOR THE PURPOSES  OF  THIS  SUBDIVI-
 SION,  A  PERSON  IS  "CONTROLLED  BY" ANOTHER PERSON IF THE CONTROLLING
 PERSON HOLDS, DIRECTLY OR INDIRECTLY, THE MAJORITY VOTING  OR  OWNERSHIP
 INTEREST  IN  THE  CONTROLLED  PERSON OR HAS CONTROL OVER THE DAY-TO-DAY
 OPERATIONS OF THE CONTROLLED PERSON BY CONTRACT OR BY LAW.
   (2) "CLOSING DATE" MEANS THE DATE ON WHICH  A  RURAL  BUSINESS  GROWTH
 FUND HAS COLLECTED ALL OF THE AMOUNTS SPECIFIED BY SUBPARAGRAPHS (A) AND
 (B) OF PARAGRAPH SEVEN OF SUBDIVISION (B) OF THIS SECTION.
   (3) "CREDIT-ELIGIBLE CAPITAL CONTRIBUTION" MEANS AN INVESTMENT OF CASH
 BY A PERSON IN A RURAL BUSINESS GROWTH FUND THAT EQUALS THE AMOUNT SPEC-
 IFIED ON A TAX CREDIT CERTIFICATE ISSUED BY THE DEPARTMENT UNDER SUBPAR-
 AGRAPH  (B)  OF  PARAGRAPH  SIX OF SUBDIVISION (B) OF THIS SECTION.  THE
 INVESTMENT SHALL PURCHASE AN  EQUITY  INTEREST  IN  THE  RURAL  BUSINESS
 GROWTH  FUND  OR  PURCHASE,  AT  PAR VALUE OR PREMIUM, A DEBT INSTRUMENT
 ISSUED BY THE RURAL GROWTH FUND THAT MEETS ALL OF THE  FOLLOWING  CRITE-
 RIA:
   (A) THE DEBT INSTRUMENT HAS AN ORIGINAL MATURITY DATE OF AT LEAST FIVE
 YEARS AFTER THE DATE OF ISSUANCE.
   (B)  THE  DEBT  INSTRUMENT HAS A REPAYMENT SCHEDULE THAT IS NOT FASTER
 THAN A LEVEL PRINCIPAL AMORTIZATION OVER FIVE YEARS.
   (C) THE DEBT INSTRUMENT HAS  NO  INTEREST,  DISTRIBUTION,  OR  PAYMENT
 FEATURES  DEPENDENT ON THE RURAL BUSINESS GROWTH FUND'S PROFITABILITY OR
 THE SUCCESS OF THE RURAL GROWTH INVESTMENTS.
   (4) "ELIGIBLE INVESTMENT AUTHORITY" MEANS THE  AMOUNT  STATED  ON  THE
 NOTICE ISSUED UNDER SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B)

 A. 2009--B                         92
 
 OF  THIS  SECTION  CERTIFYING  THE  RURAL BUSINESS GROWTH FUND. AT LEAST
 SIXTY-FIVE PERCENT OF A RURAL BUSINESS GROWTH FUND'S ELIGIBLE INVESTMENT
 AUTHORITY SHALL BE COMPRISED OF CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
   (5)  "JOBS  CREATED"  MEANS  THE NUMBER OF PERSONS EMPLOYED BY A RURAL
 BUSINESS CONCERN HAVING RECEIVED A GROWTH INVESTMENT FROM A RURAL  BUSI-
 NESS  GROWTH  FUND  DURING THE TAXABLE YEAR WHICH SHALL BE DETERMINED BY
 ASCERTAINING THE NUMBER OF SUCH INDIVIDUALS EMPLOYED FULL-TIME  BY  SUCH
 RURAL  BUSINESS  CONCERN ON THE THIRTY-FIRST DAY OF MARCH, THE THIRTIETH
 DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY  OF
 DECEMBER  DURING  EACH TAXABLE YEAR FOLLOWING ITS INITIAL GROWTH INVEST-
 MENT, BY ADDING TOGETHER THE NUMBER OF SUCH INDIVIDUALS  ASCERTAINED  ON
 EACH  OF  SUCH  DATES  AND DIVIDING THE SUM SO OBTAINED BY THE NUMBER OF
 DATES OCCURRING WITHIN SUCH TAXABLE YEAR IN THE AMOUNT THAT SUCH  NUMBER
 EXCEEDS THE JOBS RETAINED NUMBER. AN INDIVIDUAL EMPLOYED FULL-TIME MEANS
 AN  EMPLOYEE IN A JOB CONSISTING OF AT LEAST THIRTY-FIVE HOURS PER WEEK,
 OR TWO OR MORE EMPLOYEES WHO ARE IN JOBS THAT  TOGETHER  CONSTITUTE  THE
 EQUIVALENT OF A JOB OF AT LEAST THIRTY-FIVE HOURS PER WEEK.
   (6)  "JOBS  RETAINED"  MEANS THE NUMBER OF PERSONS EMPLOYED BY A RURAL
 BUSINESS CONCERN HAVING RECEIVED A GROWTH INVESTMENT FROM A RURAL  BUSI-
 NESS  GROWTH  FUND  DURING THE TAXABLE YEAR WHICH SHALL BE DETERMINED BY
 ASCERTAINING THE NUMBER OF SUCH INDIVIDUALS EMPLOYED FULL-TIME  BY  SUCH
 RURAL  BUSINESS  CONCERN ON THE THIRTY-FIRST DAY OF MARCH, THE THIRTIETH
 DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY  OF
 DECEMBER  DURING  THE  YEAR IN WHICH THE RURAL BUSINESS CONCERN RECEIVED
 ITS INITIAL GROWTH INVESTMENT FROM A  RURAL  BUSINESS  GROWTH  FUND,  BY
 ADDING  TOGETHER  THE  NUMBER OF SUCH INDIVIDUALS ASCERTAINED ON EACH OF
 SUCH DATES AND DIVIDING THE SUM SO  OBTAINED  BY  THE  NUMBER  OF  DATES
 OCCURRING  WITHIN  SUCH  TAXABLE  YEAR. AN INDIVIDUAL EMPLOYED FULL-TIME
 MEANS AN EMPLOYEE IN A JOB CONSISTING OF AT LEAST THIRTY-FIVE HOURS  PER
 WEEK,  OR TWO OR MORE EMPLOYEES WHO ARE IN JOBS THAT TOGETHER CONSTITUTE
 THE EQUIVALENT OF A JOB OF AT LEAST THIRTY-FIVE HOURS PER WEEK.
   (7) A BUSINESS'S "PRINCIPAL BUSINESS OPERATIONS" ARE IN NEW YORK STATE
 IF NEW YORK STATE IS ITS PRINCIPAL PLACE OF BUSINESS AND AT LEAST EIGHTY
 PERCENT OF THE BUSINESS'S EMPLOYEES WORK IN NEW YORK STATE, OR THE BUSI-
 NESS HAS AGREED TO USE THE PROCEEDS OF  A  RURAL  GROWTH  INVESTMENT  TO
 RELOCATE  AT  LEAST  EIGHTY  PERCENT  OF ITS EMPLOYEES TO NEW YORK STATE
 WITHIN TWELVE MONTHS OF RECEIVING THE INVESTMENT  BY  A  RURAL  BUSINESS
 GROWTH FUND.
   (8) "RURAL AREA" SHALL HAVE THE SAME MEANING AS DEFINED IN SUBDIVISION
 SEVEN OF SECTION FOUR HUNDRED EIGHTY-ONE OF THE EXECUTIVE LAW.
   (9)  "RURAL  BUSINESS CONCERN" MEANS AN OPERATING COMPANY THAT, AT THE
 TIME OF THE INITIAL INVESTMENT IN THE COMPANY BY A RURAL BUSINESS GROWTH
 FUND EMPLOYS NO MORE THAN ONE HUNDRED FIFTY FULL-TIME EQUIVALENT EMPLOY-
 EES OR HAS EARNED NOT MORE THAN TEN MILLION DOLLARS IN  NET  INCOME  FOR
 THE PRECEDING TAXABLE YEAR, AND MEETS EITHER OF THE FOLLOWING CRITERIA:
   (A)  THE  BUSINESS'S  PRINCIPAL  BUSINESS  OPERATIONS ARE LOCATED IN A
 RURAL AREA IN NEW YORK STATE AND IS AN  AGRICULTURAL  ENTERPRISE  OR  IS
 RELATED TO THE USE OF AGRICULTURAL PRODUCTS OR FOREST PRODUCTS, OR IS AN
 ENTERPRISE  IN  ONE OF THE FOLLOWING INDUSTRIES: MANUFACTURING, COMPUTER
 HARDWARE OR SOFTWARE, TOURISM, AGRIBUSINESS DEVELOPMENT TO STIMULATE THE
 DEVELOPMENT AND IMPLEMENTATION OF NEW AND ALTERNATIVE PRODUCTION,  PROC-
 ESSING,  STORAGE, DISTRIBUTION AND MARKETING TECHNOLOGY AND IMPROVEMENTS
 FOR NEW YORK FOOD, AGRICULTURE AND FOREST PRODUCTS OR IF NOT ENGAGED  IN
 ANY  OF  THESE INDUSTRIES, THE DEPARTMENT DETERMINES THAT THE INVESTMENT
 WILL BE BENEFICIAL TO THE QUALIFIED LOCATION AND THE ECONOMIC GROWTH  OF
 NEW YORK STATE; OR

 A. 2009--B                         93
 
   (B)  THE  BUSINESS  PRODUCES OR PROVIDES ANY GOODS PRINCIPALLY USED BY
 FARMERS, RANCHERS, OR PRODUCERS AND HARVESTERS OF  AQUATIC  PRODUCTS  IN
 THEIR  BUSINESS OPERATIONS, OR IS INVOLVED IN THE PROCESSING AND MARKET-
 ING OF AGRICULTURAL PRODUCTS, FARM SUPPLY, AND INPUT SUPPLIERS, PROVIDED
 THAT  SUCH  BUSINESS IS LOCATED IN A MUNICIPALITY, AS DEFINED IN SECTION
 FOUR HUNDRED EIGHTY-ONE OF THE EXECUTIVE LAW, IN NEW YORK STATE  WITH  A
 POPULATION  OF  LESS  THAN  FIFTY  THOUSAND.    FOR THE PURPOSES OF THIS
 SECTION, "NET INCOME" MEANS FEDERAL ADJUSTED GROSS INCOME AS REQUIRED TO
 BE REPORTED UNDER THE INTERNAL REVENUE CODE LESS FEDERAL AND STATE TAXES
 IMPOSED ON OR MEASURED BY INCOME.  ANY BUSINESS WHICH IS CLASSIFIED AS A
 RURAL BUSINESS CONCERN AT THE TIME OF THE  INITIAL  INVESTMENT  IN  SAID
 BUSINESS  BY  A  RURAL BUSINESS GROWTH FUND SHALL REMAIN CLASSIFIED AS A
 RURAL BUSINESS CONCERN AND MAY RECEIVE FOLLOW-ON  INVESTMENTS  FROM  ANY
 RURAL BUSINESS GROWTH FUND, AND SUCH FOLLOW-ON INVESTMENTS SHALL QUALIFY
 AS  A RURAL GROWTH INVESTMENT PROVIDED IT OTHERWISE MEETS THE DEFINITION
 OF RURAL BUSINESS CONCERN WITH THE EXCEPTION OF THE EMPLOYEE  LIMITATION
 AND NET INCOME LIMITATION IN SUCH DEFINITION.
   (10)  "RURAL  BUSINESS  GROWTH  FUND" MEANS AN ENTITY CERTIFIED BY THE
 DEPARTMENT UNDER THIS SECTION.
   (11) "RURAL GROWTH INVESTMENT" MEANS ANY CAPITAL OR EQUITY  INVESTMENT
 IN A RURAL BUSINESS CONCERN OR ANY LOAN TO A RURAL BUSINESS CONCERN WITH
 A TERM OF AT LEAST ONE YEAR.
   (12) "TAX CREDIT CERTIFICATE" MEANS THE DOCUMENT ISSUED BY THE DEPART-
 MENT  TO  A TAXPAYER WHO HAS MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION
 TO A RURAL BUSINESS GROWTH FUND.
   (13) "TAXABLE YEAR" WHEN USED IN REFERENCE  TO  AN  INSURANCE  COMPANY
 MEANS  THE CALENDAR YEAR ENDING ON THE THIRTY-FIRST DAY OF DECEMBER NEXT
 PRECEDING THE DAY THE ANNUAL REPORT IS REQUIRED  TO  BE  RETURNED  UNDER
 SUBDIVISION (D) OF THIS SECTION.
   (14)  "DEPARTMENT",  AS  USED IN THIS SECTION, MEANS THE DEPARTMENT OF
 ECONOMIC DEVELOPMENT.
   (B) CERTIFICATION. (1) ON AND AFTER AUGUST FIRST, TWO  THOUSAND  NINE-
 TEEN, AN APPLICANT THAT HAS DEVELOPED A BUSINESS PLAN TO INVEST IN RURAL
 BUSINESS  CONCERNS  IN THIS STATE AND HAS SUCCESSFULLY SOLICITED PRIVATE
 INVESTORS TO MAKE CAPITAL CONTRIBUTIONS IN SUPPORT OF THE PLAN MAY APPLY
 TO THE DEPARTMENT FOR CERTIFICATION AS A RURAL BUSINESS GROWTH FUND. THE
 APPLICATION SHALL INCLUDE ALL OF THE FOLLOWING:
   (A) THE TOTAL ELIGIBLE INVESTMENT AUTHORITY SOUGHT  BY  THE  APPLICANT
 UNDER THE BUSINESS PLAN;
   (B)  DOCUMENTS  AND OTHER EVIDENCE SUFFICIENT TO PROVE THAT THE APPLI-
 CANT MEETS ALL OF THE FOLLOWING CRITERIA: (I) THE APPLICANT OR AN AFFIL-
 IATE OF THE APPLICANT IS LICENSED AS A RURAL BUSINESS INVESTMENT COMPANY
 UNDER 7 U.S.C. 2009CC, OR AS A SMALL BUSINESS INVESTMENT  COMPANY  UNDER
 15 U.S.C. 681.
   (II)  AS  OF  THE DATE THE APPLICATION IS SUBMITTED, THE APPLICANT HAS
 INVESTED MORE THAN ONE HUNDRED MILLION DOLLARS IN OPERATING COMPANIES IN
 RURAL AREAS LOCATED INSIDE OR OUTSIDE OF NEW YORK  STATE  AND  AT  LEAST
 TWENTY-FIVE  MILLION  DOLLARS IN OPERATING COMPANIES LOCATED IN NEW YORK
 STATE.  IN COMPUTING INVESTMENTS UNDER THIS SUBDIVISION,  THE  APPLICANT
 MAY INCLUDE INVESTMENTS MADE BY AFFILIATES OF THE APPLICANT.
   (C)  AN ESTIMATE OF THE NUMBER OF (I) JOBS THAT WILL BE CREATED IN THE
 RURAL AREAS OF NEW YORK STATE AS  A  RESULT  OF  THE  APPLICANT'S  RURAL
 GROWTH  INVESTMENTS,  (II) JOBS THAT WILL BE RETAINED IN THE RURAL AREAS
 OF NEW YORK STATE AS A RESULT OF THE  APPLICANTS  RURAL  GROWTH  INVEST-
 MENTS, AND (III) THE ANTICIPATED AVERAGE WAGE PER JOB.

 A. 2009--B                         94
 
   (D)  A  REVENUE  IMPACT  ASSESSMENT FOR THE APPLICANT'S PROPOSED RURAL
 GROWTH INVESTMENTS PREPARED BY A NATIONALLY RECOGNIZED THIRD-PARTY INDE-
 PENDENT ECONOMIC FORECASTING FIRM USING A DYNAMIC  ECONOMIC  FORECASTING
 MODEL.    THE  REVENUE  IMPACT  ASSESSMENT SHALL ANALYZE THE APPLICANT'S
 BUSINESS  PLAN  OVER THE TEN YEARS FOLLOWING THE DATE THE APPLICATION IS
 SUBMITTED TO THE DEPARTMENT.
   (E) A SIGNED AFFIDAVIT FROM EACH INVESTOR  SUCCESSFULLY  SOLICITED  BY
 THE  APPLICANT TO MAKE A CREDIT ELIGIBLE CAPITAL CONTRIBUTION IN SUPPORT
 OF THE BUSINESS PLAN. EACH AFFIDAVIT SHALL  INCLUDE  INFORMATION  SUFFI-
 CIENT  FOR  THE  DEPARTMENT TO IDENTIFY THE INVESTOR AND SHALL STATE THE
 AMOUNT OF THE INVESTOR'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION.
   (F) A NONREFUNDABLE APPLICATION FEE OF FIVE THOUSAND DOLLARS.
   (G) A STRATEGY, AS PART OF  ITS  BUSINESS  PLAN,  TO  MAKE  REASONABLE
 EFFORTS  TO  INVEST IN BUSINESSES THAT ARE ENVIRONMENTALLY SENSITIVE AND
 UTILIZE RESOURCES THAT PROMOTE A CLEAN ENVIRONMENT AND ENERGY  CONSERVA-
 TION.
   (2)  THE DEPARTMENT SHALL REVIEW AND MAKE A DETERMINATION WITH RESPECT
 TO EACH APPLICATION SUBMITTED UNDER PARAGRAPH ONE  OF  THIS  SUBDIVISION
 WITHIN  THIRTY DAYS OF RECEIPT. THE DEPARTMENT SHALL MAKE DETERMINATIONS
 ON THE APPLICATIONS IN THE ORDER IN WHICH THE APPLICATIONS ARE  RECEIVED
 BY  THE  DEPARTMENT. APPLICATIONS RECEIVED BY THE DEPARTMENT ON THE SAME
 DAY SHALL BE DEEMED TO HAVE  BEEN  RECEIVED  SIMULTANEOUSLY.  EXCEPT  AS
 PROVIDED  IN  PARAGRAPH  FOUR  OF  SUBDIVISION  (C) OF THIS SECTION, THE
 DEPARTMENT SHALL NOT APPROVE MORE THAN ONE HUNDRED  MILLION  DOLLARS  IN
 ELIGIBLE INVESTMENT AUTHORITY OR MORE THAN SIXTY-FIVE MILLION DOLLARS IN
 CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
   (3)  THE  DEPARTMENT  SHALL  DENY  AN APPLICATION SUBMITTED UNDER THIS
 SECTION IF ANY OF THE FOLLOWING ARE TRUE: (A) THE APPLICATION IS  INCOM-
 PLETE.
   (B) THE APPLICATION FEE IS NOT PAID IN FULL.
   (C)  THE  APPLICANT  DOES  NOT  SATISFY  ALL THE CRITERIA DESCRIBED IN
 SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION.
   (D) THE REVENUE IMPACT ASSESSMENT SUBMITTED UNDER SUBPARAGRAPH (D)  OF
 PARAGRAPH  ONE  OF THIS SUBDIVISION DOES NOT DEMONSTRATE THAT THE APPLI-
 CANT'S BUSINESS PLAN WILL RESULT IN A POSITIVE ECONOMIC IMPACT  ON  THIS
 STATE  OVER  A  TEN-YEAR PERIOD THAT EXCEEDS THE CREDIT ELIGIBLE CAPITAL
 CONTRIBUTIONS SOUGHT BY THE APPLICANT.
   (E) THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS DESCRIBED IN  AFFIDAVITS
 SUBMITTED UNDER SUBPARAGRAPH (E) OF PARAGRAPH ONE OF THIS SUBDIVISION DO
 NOT  EQUAL SIXTY-FIVE PERCENT OF THE TOTAL AMOUNT OF ELIGIBLE INVESTMENT
 AUTHORITY SOUGHT UNDER THE APPLICANT'S BUSINESS PLAN.
   (F) THE DEPARTMENT HAS ALREADY APPROVED THE MAXIMUM AMOUNT OF ELIGIBLE
 INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL  CONTRIBUTIONS  ALLOWED
 UNDER PARAGRAPH TWO OF THIS SUBDIVISION.
   (4)  IF  THE DEPARTMENT DENIES AN APPLICATION UNDER PARAGRAPH THREE OF
 THIS SUBDIVISION, THE DEPARTMENT SHALL SEND NOTICE OF ITS  DETERMINATION
 OF THE APPLICANT. THE NOTICE SHALL INCLUDE THE REASONS THAT THE APPLICA-
 TION WAS DENIED. IF THE APPLICATION WAS DENIED FOR ANY REASON OTHER THAN
 THE  REASON  SPECIFIED  IN  SUBPARAGRAPH  (F) OF PARAGRAPH THREE OF THIS
 SUBDIVISION, THE APPLICANT MAY PROVIDE  ADDITIONAL  INFORMATION  TO  THE
 DEPARTMENT  TO  COMPLETE,  CLARIFY,  OR CURE DEFECTS IN THE APPLICATION.
 THE ADDITIONAL INFORMATION MUST BE SUBMITTED WITHIN  THIRTY  DAYS  AFTER
 THE  DATE THE NOTICE OF DENIAL WAS SENT BY THE DEPARTMENT. IF THE PERSON
 OR ENTITY SUBMITS ADDITIONAL INFORMATION WITHIN THIRTY DAYS, THE DEPART-
 MENT SHALL RECONSIDER THE APPLICATION WITHIN THIRTY DAYS AFTER RECEIVING
 SUCH ADDITIONAL INFORMATION. IF AFTER SUBMISSION OF ADDITIONAL  INFORMA-

 A. 2009--B                         95
 
 TION, THE APPLICATION IS APPROVED, THEN THE SUBMISSION DATE SHALL BE THE
 DATE  OF  THE  ORIGINAL  SUBMISSION OF THE APPLICATION. IF THE PERSON OR
 ENTITY DOES NOT SUBMIT ADDITIONAL INFORMATION WITHIN THIRTY  DAYS  AFTER
 THE  NOTICE  OF DENIAL WAS SENT, THE APPLICANT MAY SUBMIT A NEW APPLICA-
 TION WITH A NEW SUBMISSION DATE AT ANY TIME.
   (5) IF APPROVING MULTIPLE SIMULTANEOUSLY SUBMITTED APPLICATIONS  WOULD
 RESULT  IN EXCEEDING THE OVERALL ELIGIBLE INVESTMENT LIMIT PRESCRIBED BY
 PARAGRAPH TWO OF THIS SUBDIVISION, THE DEPARTMENT  SHALL  PROPORTIONALLY
 REDUCE THE ELIGIBLE INVESTMENT AUTHORITY AND THE CREDIT-ELIGIBLE CAPITAL
 CONTRIBUTIONS  FOR  EACH  APPROVED  APPLICATION  AS  NECESSARY  TO AVOID
 EXCEEDING THE LIMIT.
   (6) IF THE DEPARTMENT APPROVES SUCH APPLICATION, THE DEPARTMENT SHALL:
 (A) ISSUE A WRITTEN NOTICE CERTIFYING THAT THE APPLICANT QUALIFIES AS  A
 RURAL  BUSINESS GROWTH FUND AND SPECIFYING THE AMOUNT OF THE APPLICANT'S
 ELIGIBLE INVESTMENT AUTHORITY AND THE NUMBER OF JOBS  CREATED  AND  JOBS
 RETAINED REQUIRED OF THE RURAL BUSINESS GROWTH FUND DETERMINED BY MULTI-
 PLYING  THE ESTIMATED NUMBER OF JOBS CREATED AND JOBS RETAINED SET FORTH
 IN THE RURAL BUSINESS GROWTH  FUND'S  APPLICATION  BY  A  FRACTION,  THE
 NUMERATOR  OF  WHICH  IS  THE  INVESTMENT AUTHORITY AWARDED TO THE RURAL
 BUSINESS GROWTH FUND AND THE DENOMINATOR  OF  WHICH  IS  THE  INVESTMENT
 AUTHORITY  FOR WHICH THE RURAL BUSINESS GROWTH FUND APPLIED; (B) TO EACH
 INVESTOR WHOSE AFFIDAVIT WAS INCLUDED IN THE APPLICATION,  ISSUE  A  TAX
 CREDIT CERTIFICATE SPECIFYING THE AMOUNT OF THE INVESTOR'S CREDIT-ELIGI-
 BLE  CAPITAL  CONTRIBUTION;  AND (C) TO THE COMMISSIONER, A COPY OF EACH
 TAX CREDIT CERTIFICATE ISSUED UNDER SUBPARAGRAPH (B) OF THIS PARAGRAPH.
   (7) A RURAL BUSINESS GROWTH FUND SHALL COMPLETE ALL OF  THE  FOLLOWING
 WITHIN SIXTY DAYS OF RECEIVING THE WRITTEN NOTICE ISSUED UNDER PARAGRAPH
 SIX OF THIS SUBDIVISION:
   (A) COLLECT THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS FROM EACH INVES-
 TOR WHOSE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS ARE DESCRIBED IN AFFIDA-
 VITS  SUBMITTED  PURSUANT  TO  SUBPARAGRAPH (E) OF PARAGRAPH ONE OF THIS
 SUBDIVISION.
   (B) COLLECT ONE OR MORE INVESTMENTS OF CASH, WHICH SHALL  PURCHASE  AN
 EQUITY  INTEREST IN THE RURAL GROWTH FUND OR A DEBT INSTRUMENT ISSUED BY
 THE RURAL GROWTH FUND AT PAR VALUE OR PREMIUM, WITH A MATURITY  DATE  OF
 AT  LEAST  FIVE  YEARS  FROM  THE  CLOSING  DATE THAT, WHEN ADDED TO THE
 CONTRIBUTIONS COLLECTED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH,  EQUAL
 THE  FUND'S  ELIGIBLE  INVESTMENT AUTHORITY. AT LEAST TEN PERCENT OF THE
 FUND'S ELIGIBLE  INVESTMENT  AUTHORITY  SHALL  BE  COMPRISED  OF  EQUITY
 INVESTMENTS CONTRIBUTED BY AFFILIATES OF THE RURAL BUSINESS GROWTH FUND,
 INCLUDING EMPLOYEES, OFFICERS, AND DIRECTORS OF SUCH AFFILIATES.
   (C)  SEND TO THE DEPARTMENT DOCUMENTATION SUFFICIENT TO PROVE THAT THE
 AMOUNTS DESCRIBED IN SUBPARAGRAPHS (A) AND (B) OF  THIS  PARAGRAPH  HAVE
 BEEN  COLLECTED. IF THE RURAL BUSINESS GROWTH FUND FAILS TO FULLY COMPLY
 WITH THIS PARAGRAPH, THE FUND'S CERTIFICATION SHALL LAPSE.
   (8) ELIGIBLE INVESTMENT AUTHORITY  AND  CORRESPONDING  CREDIT-ELIGIBLE
 CAPITAL  CONTRIBUTIONS THAT LAPSE UNDER PARAGRAPH SEVEN OF THIS SUBDIVI-
 SION DO NOT COUNT TOWARD LIMITS ON TOTAL ELIGIBLE  INVESTMENT  AUTHORITY
 AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS PRESCRIBED IN PARAGRAPH TWO OF
 THIS  SUBDIVISION.  ONCE  ELIGIBLE  INVESTMENT AUTHORITY HAS LAPSED, THE
 DEPARTMENT SHALL FIRST AWARD LAPSED AUTHORITY PRO  RATA  TO  EACH  RURAL
 BUSINESS  GROWTH  FUND THAT WAS AWARDED LESS THAN THE REQUESTED ELIGIBLE
 INVESTMENT AUTHORITY UNDER  PARAGRAPH  FIVE  OF  THIS  SUBDIVISION.  ANY
 REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE AWARDED BY THE DEPARTMENT
 TO NEW APPLICANTS.

 A. 2009--B                         96
 
   (9)  APPLICATION FEES SUBMITTED TO THE DEPARTMENT PURSUANT TO SUBPARA-
 GRAPH (F) OF PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE CREDITED TO  THE
 NEW  YORK  AGRICULTURE  AND  RURAL JOBS FUND, CREATED IN SECTION NINETY-
 NINE-FF OF THE STATE FINANCE LAW.
   (C)  REVOCATION  OF  CERTIFICATION AND PENALTIES.   (1) THE DEPARTMENT
 SHALL REVOKE A TAX CREDIT CERTIFICATE ISSUED UNDER  SUBDIVISION  (B)  OF
 THIS SECTION IF ANY OF THE FOLLOWING OCCUR WITH RESPECT TO A RURAL BUSI-
 NESS  GROWTH FUND BEFORE THE FUND EXITS THE PROGRAM UNDER PARAGRAPH FIVE
 OF THIS SUBDIVISION.
   (A) THE RURAL BUSINESS GROWTH FUND IN WHICH THE CREDIT-ELIGIBLE  CAPI-
 TAL  CONTRIBUTION WAS MADE DOES NOT INVEST SIXTY PERCENT OF ITS ELIGIBLE
 INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN  THIS  STATE  WITHIN
 TWO  YEARS  OF  THE CLOSING DATE AND ONE HUNDRED PERCENT OF ITS ELIGIBLE
 INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN  THIS  STATE  WITHIN
 THREE YEARS OF THE CLOSING DATE.
   (B)  AFTER  INVESTING  ONE  HUNDRED PERCENT OF ITS ELIGIBLE INVESTMENT
 AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE, THE RURAL  BUSINESS
 GROWTH FUND FAILS TO MAINTAIN THAT INVESTMENT UNTIL THE SEVENTH ANNIVER-
 SARY  OF THE CLOSING DATE.  FOR THE PURPOSES OF THIS SECTION, AN INVEST-
 MENT IS "MAINTAINED" EVEN IF THE INVESTMENT IS SOLD OR REPAID SO LONG AS
 THE RURAL BUSINESS GROWTH FUND REINVESTS AN AMOUNT EQUAL TO THE  CAPITAL
 RETURNED  OR  RECOVERED BY THE FUND FROM THE ORIGINAL INVESTMENT, EXCLU-
 SIVE OF ANY PROFITS REALIZED, IN OTHER RURAL GROWTH INVESTMENTS IN  THIS
 STATE  WITHIN  TWELVE  MONTHS  OF  THE RECEIPT OF SUCH CAPITAL.  AMOUNTS
 RECEIVED PERIODICALLY BY A RURAL BUSINESS GROWTH FUND SHALL  BE  TREATED
 AS  CONTINUALLY  INVESTED IN RURAL GROWTH INVESTMENTS IF THE AMOUNTS ARE
 REINVESTED IN ONE OR MORE RURAL GROWTH INVESTMENTS BY  THE  END  OF  THE
 FOLLOWING CALENDAR YEAR. A RURAL BUSINESS GROWTH FUND IS NOT REQUIRED TO
 REINVEST  CAPITAL  RETURNED  FROM  RURAL  GROWTH  INVESTMENTS IN THE SIX
 MONTHS IMMEDIATELY PRECEDING THE  SEVENTH  ANNIVERSARY  OF  THE  CLOSING
 DATE, AND SUCH RURAL GROWTH INVESTMENTS SHALL BE CONSIDERED HELD CONTIN-
 UOUSLY  BY  THE RURAL GROWTH FUND THROUGH THE SEVENTH ANNIVERSARY OF THE
 CLOSING DATE.
   (C) THE RURAL BUSINESS GROWTH FUND INVESTS MORE THAN  THE  GREATER  OF
 FIVE  MILLION  DOLLARS  OR  TWENTY  PERCENT  OF  ITS ELIGIBLE INVESTMENT
 AUTHORITY IN THE SAME RURAL BUSINESS CONCERN, INCLUDING AMOUNTS INVESTED
 IN AFFILIATES OF THE RURAL BUSINESS CONCERN BUT EXCLUDING AMOUNTS  REIN-
 VESTED  IN  THE RURAL BUSINESS GROWTH FUND WITH REPAID OR REDEEMED RURAL
 BUSINESS GROWTH INVESTMENTS, PROVIDED SUCH REINVESTMENTS SHALL NOT COUNT
 TOWARDS THE REQUIREMENT OF SUBPARAGRAPH (A) OF THIS PARAGRAPH.
   (D) THE RURAL BUSINESS GROWTH FUND MAKES A RURAL GROWTH INVESTMENT  IN
 A  RURAL  BUSINESS CONCERN THAT DIRECTLY OR INDIRECTLY THROUGH AN AFFIL-
 IATE OWNS, HAS THE RIGHT TO ACQUIRE AN OWNERSHIP INTEREST, MAKE  A  LOAN
 TO,  OR  MAKE AN INVESTMENT IN THE RURAL BUSINESS GROWTH FUND, AN AFFIL-
 IATE OF THE RURAL BUSINESS GROWTH FUND, OR  AN  INVESTOR  IN  THE  RURAL
 BUSINESS  GROWTH  FUND.  THIS PARAGRAPH DOES NOT APPLY TO INVESTMENTS IN
 PUBLICLY TRADED SECURITIES BY A RURAL BUSINESS CONCERN OR  AN  OWNER  OR
 AFFILIATE OF SUCH CONCERN.
   (2)  BEFORE TAKING ACTION UNDER PARAGRAPH ONE OF THIS SUBDIVISION, THE
 DEPARTMENT SHALL NOTIFY THE RURAL BUSINESS GROWTH FUND  OF  THE  REASONS
 FOR  THE  PENDING ACTION. IF THE RURAL BUSINESS GROWTH FUND CORRECTS THE
 VIOLATIONS, OTHER THAN VIOLATIONS OF SUBPARAGRAPH (D) OF  PARAGRAPH  ONE
 OF  THIS  SUBDIVISION, OUTLINED IN THE NOTICE TO THE SATISFACTION OF THE
 DEPARTMENT WITHIN ONE HUNDRED EIGHTY DAYS OF THE DATE OF THE NOTICE  WAS
 SENT,  THE  DEPARTMENT  SHALL  NOT REVOKE THE TAX CREDIT CERTIFICATES OR
 LEVY A FINE.

 A. 2009--B                         97
 
   (3) IF THE DEPARTMENT REVOKES A TAX CREDIT CERTIFICATE UNDER PARAGRAPH
 ONE OF THIS SUBDIVISION, IT SHALL NOTIFY  THE  COMMISSIONER,  WHO  SHALL
 MAKE  AN  ASSESSMENT FOR THE AMOUNT OF THE CREDIT CLAIMED BY THE CERTIF-
 ICATE HOLDER BEFORE THE CERTIFICATE WAS REVOKED. THE COMMISSIONER  SHALL
 MAKE  THE  ASSESSMENT  WITHIN  ONE  YEAR  AFTER THE CERTIFICATE HAS BEEN
 REVOKED.
   (4) IF TAX CREDIT CERTIFICATES ARE REVOKED UNDER PARAGRAPH ONE OF THIS
 SUBDIVISION, THE ASSOCIATED ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-EL-
 IGIBLE CAPITAL CONTRIBUTIONS DO NOT COUNT  TOWARD  THE  LIMIT  ON  TOTAL
 ELIGIBLE  INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS
 DESCRIBED BY PARAGRAPH TWO OF  SUBDIVISION  (B)  OF  THIS  SECTION.  THE
 DEPARTMENT  SHALL  FIRST AWARD REVERTED AUTHORITY PRO RATA TO EACH RURAL
 BUSINESS GROWTH FUND THAT WAS AWARDED LESS THAN THE  REQUESTED  ELIGIBLE
 INVESTMENT  AUTHORITY  UNDER  PARAGRAPH  FIVE OF SUBDIVISION (B) OF THIS
 SECTION. ANY REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE  AWARDED  BY
 THE DEPARTMENT TO NEW APPLICANTS.
   (5)  (A)  ON  OR  AFTER THE SEVENTH ANNIVERSARY OF THE CLOSING DATE, A
 RURAL BUSINESS GROWTH FUND THAT  HAS  NOT  COMMITTED  ANY  OF  THE  ACTS
 DESCRIBED  IN PARAGRAPH ONE OF THIS SUBDIVISION MAY APPLY TO THE DEPART-
 MENT TO EXIT THE PROGRAM AS A RURAL BUSINESS GROWTH FUND AND  NO  LONGER
 BE  SUBJECT  TO  REGULATION  UNDER  THIS  SECTION.  THE DEPARTMENT SHALL
 RESPOND TO THE APPLICATION  WITHIN  THIRTY  DAYS  AFTER  RECEIVING  SUCH
 APPLICATION.    IN  EVALUATING  SUCH REQUEST THE FACT THAT NO TAX CREDIT
 CERTIFICATES HAVE BEEN REVOKED WITH RESPECT TO THE RURAL BUSINESS GROWTH
 FUND SHALL BE SUFFICIENT EVIDENCE TO PROVE THAT THE FUND IS ELIGIBLE  TO
 EXIT THE PROGRAM. THE DEPARTMENT SHALL NOT UNREASONABLY DENY AN APPLICA-
 TION SUBMITTED UNDER THIS SUBDIVISION.
   (B) THE DEPARTMENT SHALL SEND NOTICE OF ITS DETERMINATION WITH RESPECT
 TO  AN APPLICATION SUBMITTED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH TO
 THE RURAL BUSINESS GROWTH FUND. IF THE APPLICATION IS DENIED, THE NOTICE
 SHALL INCLUDE THE REASONS FOR THE DETERMINATION.
   (C) THE DEPARTMENT SHALL NOT REVOKE A TAX CREDIT  CERTIFICATE  DUE  TO
 ANY  ACTIONS  OF  A RURAL BUSINESS GROWTH FUND THAT OCCUR AFTER THE DATE
 THE FUND'S APPLICATION FOR EXITING THE PROGRAM IS APPROVED UNDER SUBPAR-
 AGRAPH (A) OF THIS PARAGRAPH.
   (6) A RURAL BUSINESS GROWTH FUND IS SUBJECT TO A PENALTY IN THE AMOUNT
 PROVIDED BY PARAGRAPH SEVEN OF THIS SUBDIVISION IF:
   (A) THE RURAL BUSINESS GROWTH FUND AUTHORIZES A  DISTRIBUTION  TO  THE
 RURAL  BUSINESS  GROWTH FUND'S EQUITY OR DEBT HOLDERS IN AN AMOUNT THAT,
 WHEN ADDED TO ALL PREVIOUS DISTRIBUTIONS TO THE  RURAL  BUSINESS  GROWTH
 FUND'S  EQUITY  AND  DEBT  HOLDERS AND ANY PREVIOUS PENALTIES UNDER THIS
 SECTION, EXCEEDS THE RURAL BUSINESS GROWTH FUND'S INVESTMENT  AUTHORITY;
 AND
   (B)  THE  NUMBER OF JOBS CREATED AND JOBS RETAINED AS REPORTED IN EACH
 OF THE ANNUAL REPORTS SUBMITTED UNDER PARAGRAPH ONE OF  SUBDIVISION  (D)
 OF  THIS  SECTION  IS  LESS  THAN  THE  NUMBER  OF JOBS CREATED AND JOBS
 RETAINED AS SET FORTH IN THE RURAL  BUSINESS  GROWTH  FUND'S  NOTICE  OF
 APPROVAL  PURSUANT  TO  SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION
 (B) OF THIS SECTION.
   (7) THE AMOUNT OF THE PENALTY PURSUANT TO PARAGRAPH SIX OF THIS SUBDI-
 VISION SHALL BE EQUAL TO THE AMOUNT OF THE TAX CREDIT CERTIFICATE ISSUED
 UNDER SUBPARAGRAPH (B) OF PARAGRAPH  SIX  OF  SUBDIVISION  (B)  OF  THIS
 SECTION MULTIPLIED BY A FRACTION:
   (A)  THE  NUMERATOR  OF  WHICH  IS THE NUMBER OF JOBS CREATED AND JOBS
 RETAINED SET FORTH  IN  THE  RURAL  BUSINESS  GROWTH  FUND'S  NOTICE  OF
 APPROVAL  UNDER  SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B) OF

 A. 2009--B                         98
 
 THIS SECTION LESS THE SUM OF JOBS CREATED AND JOBS RETAINED REPORTED  TO
 THE  DEPARTMENT ANNUALLY PURSUANT TO PARAGRAPH ONE OF SUBDIVISION (D) OF
 THIS SECTION; AND
   (B)  THE  DENOMINATOR  OF WHICH IS THE NUMBER OF JOBS CREATED AND JOBS
 RETAINED SET FORTH  IN  THE  RURAL  BUSINESS  GROWTH  FUND'S  NOTICE  OF
 APPROVAL  UNDER  SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B) OF
 THIS SECTION.
   (8) BEFORE MAKING A DISTRIBUTION TO THE RURAL BUSINESS  GROWTH  FUND'S
 EQUITY  HOLDERS,  THE RURAL BUSINESS GROWTH FUND SHALL DEDUCT THE AMOUNT
 OF THE PENALTY AS CALCULATED PURSUANT TO PARAGRAPH SEVEN OF THIS  SUBDI-
 VISION  FROM  THE  AMOUNT  OTHERWISE AUTHORIZED TO BE DISTRIBUTED TO THE
 EQUITY HOLDERS AND PAY THE PENALTY TO THE DEPARTMENT.
   (9) A RURAL BUSINESS GROWTH FUND SHALL, PRIOR TO MAKING A RURAL GROWTH
 INVESTMENT, REQUEST FROM THE DEPARTMENT A WRITTEN  DETERMINATION  AS  TO
 WHETHER  THE BUSINESS ENTITY IN WHICH IT PROPOSES TO INVEST QUALIFIES AS
 A RURAL BUSINESS CONCERN.  SUCH REQUEST SHALL BE IN A FORM PRESCRIBED BY
 THE DEPARTMENT.  RURAL BUSINESS CONCERN DETERMINATION REQUESTS SHALL  BE
 ACCEPTED,  REVIEWED,  AND  APPROVED ON A ROLLING BASIS.  THE DEPARTMENT,
 NOT LATER THAN THE TWENTIETH BUSINESS DAY AFTER THE DATE OF  RECEIPT  OF
 SUCH REQUEST, PROVIDED THE REQUEST INCLUDES ALL OF THE REQUIRED INFORMA-
 TION TO PERFORM SUCH REVIEW, SHALL NOTIFY THE RURAL BUSINESS GROWTH FUND
 OF ITS DETERMINATION. IF THE DEPARTMENT FAILS TO NOTIFY SUCH FUND OF ITS
 DETERMINATION  WITHIN  SUCH  TWENTY BUSINESS DAYS, THE BUSINESS IN WHICH
 THE RURAL BUSINESS GROWTH FUND PROPOSES TO INVEST  SHALL  BE  DEEMED  TO
 QUALIFY AS A RURAL BUSINESS CONCERN.
   (D) REPORTS. (1) A RURAL BUSINESS GROWTH FUND SHALL SUBMIT A REPORT TO
 THE  DEPARTMENT  ON OR BEFORE THE FIFTH BUSINESS DAY AFTER EACH ANNIVER-
 SARY OF THE CLOSING DATE UNTIL THE RURAL BUSINESS GROWTH FUND HAS EXITED
 THE PROGRAM IN ACCORDANCE WITH PARAGRAPH FIVE OF SUBDIVISION (C) OF THIS
 SECTION. THE REPORT SHALL DOCUMENT  THE  RURAL  BUSINESS  GROWTH  FUND'S
 GROWTH INVESTMENTS AND SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO:
   (A) A BANK STATEMENT SHOWING EACH RURAL GROWTH INVESTMENT;
   (B)  THE  NAME,  LOCATION, AND INDUSTRY OF EACH RURAL BUSINESS CONCERN
 RECEIVING A RURAL GROWTH INVESTMENT, INCLUDING EITHER THE  DETERMINATION
 NOTICE DESCRIBED BY PARAGRAPH NINE OF SUBDIVISION (C) OF THIS SECTION OR
 EVIDENCE  THAT  SUCH  DETERMINATION  WAS  REQUESTED  AND  NO  NOTICE WAS
 PROVIDED;
   (C) THE NUMBER OF JOBS CREATED AND  JOBS  RETAINED  IN  THE  PRECEDING
 TWELVE  MONTH  REPORTING PERIOD AS A RESULT OF THE RURAL BUSINESS GROWTH
 FUND'S RURAL GROWTH INVESTMENTS AS OF THE LAST DAY OF THAT PERIOD;
   (D) THE AVERAGE ANNUAL SALARY OF THE JOBS  DESCRIBED  BY  SUBPARAGRAPH
 (C) OF THIS PARAGRAPH; AND
   (E)  ANY  OTHER  INFORMATION  DEEMED  PERTINENT  BY THE RURAL BUSINESS
 GROWTH FUND OR REQUIRED BY THE DEPARTMENT.
   (2) THE DEPARTMENT SHALL  ADOPT  RULES  NECESSARY  TO  IMPLEMENT  THIS
 SUBDIVISION.
   §  2.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) CREDIT FOR CERTAIN INVESTMENTS TO A RURAL BUSINESS  GROWTH  FUND.
 (1)  THERE  IS  HEREBY  ALLOWED A NONREFUNDABLE TAX CREDIT FOR TAXPAYERS
 THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION  TO  A  RURAL  BUSINESS
 GROWTH  FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH
 (B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION  FORTY-FOUR  OF  THIS
 CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE. THE CREDIT MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY
 OTHER THAN AN AFFILIATE OF THE TAXPAYER.

 A. 2009--B                         99
 
   (2)  THE  TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
 INVESTMENT AUTHORITY FOR THE FIFTH ANNIVERSARY OF THE CLOSING  DATE  AND
 UP  TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE SIXTH
 AND SEVENTH ANNIVERSARIES OF THE CLOSING DATE  IN  CONNECTION  WITH  THE
 CERTIFICATE  ISSUED,  EXCLUSIVE  OF  AMOUNTS CARRIED FORWARD PURSUANT TO
 PARAGRAPH THREE OF THIS SUBDIVISION.
   (3) IF THE AMOUNT OF THE CREDIT FOR A TAXABLE  YEAR  EXCEEDS  THE  TAX
 OTHERWISE  DUE  FOR  THAT  YEAR,  THE EXCESS SHALL BE CARRIED FORWARD TO
 ENSUING TAXABLE YEARS. A TAXPAYER CLAIMING A CREDIT UNDER  THIS  SECTION
 SHALL  SUBMIT  A  COPY OF THE TAX CREDIT CERTIFICATE WITH THE TAXPAYER'S
 RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
   § 3. The tax law is amended by adding a new section 187-q to  read  as
 follows:
   §  187-Q.  CREDIT  FOR  CERTAIN INVESTMENTS TO A RURAL BUSINESS GROWTH
 FUND. 1. THERE IS HEREBY ALLOWED A NONREFUNDABLE TAX CREDIT FOR  TAXPAY-
 ERS THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO A RURAL BUSINESS
 GROWTH  FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH
 (B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION  FORTY-FOUR  OF  THIS
 CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE. THE CREDIT MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY
 OTHER THAN AN AFFILIATE OF THE TAXPAYER.
   2.  THE  TAXPAYER  MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
 INVESTMENT AUTHORITY FOR THE FIFTH ANNIVERSARY OF THE CLOSING  DATE  AND
 UP  TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE SIXTH
 AND SEVENTH ANNIVERSARIES OF THE CLOSING DATE  IN  CONNECTION  WITH  THE
 CERTIFICATE  ISSUED,  EXCLUSIVE  OF  AMOUNTS CARRIED FORWARD PURSUANT TO
 SUBDIVISION THREE OF THIS SECTION. IN NO EVENT SHALL  THE  CREDIT  UNDER
 THIS  SECTION  BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE
 TO LESS THAN THE APPLICABLE MINIMUM TAX FIXED  BY  SECTION  ONE  HUNDRED
 EIGHTY-THREE OF THIS ARTICLE.
   3.  IF  THE  AMOUNT  OF  THE CREDIT FOR A TAXABLE YEAR EXCEEDS THE TAX
 OTHERWISE DUE FOR THAT YEAR, THE EXCESS  SHALL  BE  CARRIED  FORWARD  TO
 ENSUING  TAXABLE  YEARS. A TAXPAYER CLAIMING A CREDIT UNDER THIS SECTION
 SHALL SUBMIT A COPY OF THE TAX CREDIT CERTIFICATE  WITH  THE  TAXPAYER'S
 RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
   §  4. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. CREDIT FOR CERTAIN INVESTMENTS TO A RURAL  BUSINESS  GROWTH  FUND.
 (1)  ALLOWANCE  OF  CREDIT.  THERE IS HEREBY ALLOWED A NONREFUNDABLE TAX
 CREDIT FOR TAXPAYERS THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
 A RURAL BUSINESS GROWTH FUND AND WERE ISSUED A  TAX  CREDIT  CERTIFICATE
 UNDER  SUBPARAGRAPH  (B)  OF PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION
 FORTY-FOUR OF THIS CHAPTER. THE CREDIT MAY BE CLAIMED  AGAINST  THE  TAX
 IMPOSED  BY  THIS  ARTICLE.  THE CREDIT MAY NOT BE SOLD, TRANSFERRED, OR
 ALLOCATED TO ANY ENTITY OTHER THAN AN AFFILIATE OF THE TAXPAYER.
   (2) AMOUNT OF CREDIT CLAIMED.  THE TAXPAYER MAY CLAIM  UP  TO  TWENTY-
 FIVE PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE FIFTH ANNIVER-
 SARY  OF  THE  CLOSING  DATE  AND  UP  TO TWENTY PERCENT OF THE ELIGIBLE
 INVESTMENT AUTHORITY FOR THE SIXTH  AND  SEVENTH  ANNIVERSARIES  OF  THE
 CLOSING  DATE  IN  CONNECTION  WITH THE CERTIFICATE ISSUED, EXCLUSIVE OF
 AMOUNTS CARRIED FORWARD PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION.
   (3) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
 THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE.  PROVIDED, HOWEVER, THAT IF THE
 AMOUNT  OF  THE  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE

 A. 2009--B                         100
 
 YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE  TAXPAYER  OTHERWISE  PAYS
 TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREAT-
 ED  AS  AN  OVERPAYMENT  OF  TAX  TO  BE CREDITED IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
 FURTHER, NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE
 THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER, NO INTEREST SHALL BE PAID THERE-
 ON.
   § 5. The state finance law is amended by adding a new section 99-ff to
 read as follows:
   § 99-FF. NEW YORK AGRICULTURE AND RURAL JOBS FUND. 1. THERE IS  HEREBY
 ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
 COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
 "NEW YORK AGRICULTURE AND RURAL JOBS FUND".
   2.  SUCH FUND SHALL CONSIST OF ALL APPLICATION FEES SUBMITTED PURSUANT
 TO SUBPARAGRAPH (F) OF PARAGRAPH  ONE  OF  SUBDIVISION  (B)  OF  SECTION
 FORTY-FOUR  OF THE TAX LAW, AND ALL OTHER MONEYS APPROPRIATED, CREDITED,
 OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
   3. MONEYS OF THE FUND,  FOLLOWING  APPROPRIATION  BY  THE  LEGISLATURE
 SHALL BE EXPENDED ONLY FOR THE PURPOSES OF PROVIDING FUNDING FOR THE NEW
 YORK  AGRICULTURE  AND RURAL JOBS CREDIT SET FORTH IN SECTION FORTY-FOUR
 OF THE TAX LAW. MONEYS SHALL BE PAID OUT OF THE FUND ON  THE  AUDIT  AND
 WARRANT  OF  THE STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY
 THE COMMISSIONER OF TAXATION AND FINANCE. ANY INTEREST RECEIVED  BY  THE
 COMPTROLLER  ON  MONEYS ON DEPOSIT IN THE NEW YORK AGRICULTURE AND RURAL
 JOBS FUND SHALL BE RETAINED IN AND BECOME PART OF SUCH FUND.
   § 6. This act shall take effect July 1, 2019.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  3.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Parts A through EEE of this  act  shall
 be as specifically set forth in the last section of such Parts.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 1509--C                                            A. 2009--C
 
                       S E N A T E - A S S E M B L Y
 
                             January 18, 2019
                                ___________
 
 IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
   cle seven of the Constitution -- read twice and ordered  printed,  and
   when  printed to be committed to the Committee on Finance -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee  --  committee  discharged,  bill  amended,  ordered
   reprinted  as  amended  and recommitted to said committee -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
   article  seven  of  the  Constitution -- read once and referred to the
   Committee on Ways and Means --  committee  discharged,  bill  amended,
   ordered  reprinted  as  amended  and  recommitted to said committee --
   again reported from said committee with amendments, ordered  reprinted
   as  amended and recommitted to said committee -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee
 
 AN  ACT  to amend part U of chapter 61 of the laws of 2011, amending the
   real property tax law and other laws relating to  establishing  stand-
   ards  for electronic tax administration, in relation to the effective-
   ness of provisions relating to  mandatory  electronic  filing  of  tax
   documents (Part A); to amend the economic development law, in relation
   to  the employee training incentive program (Part B); to amend the tax
   law and the administrative code of the city of New York,  in  relation
   to  including  in the apportionment fraction receipts constituting net
   global intangible low-taxed income (Part C); to amend the tax law  and
   the  administrative  code  of the city of New York, in relation to the
   adjusted basis for property used to determine whether  a  manufacturer
   is  a  qualified  New  York manufacturer (Part D); to amend part MM of
   chapter 59 of the laws of 2014 amending the labor law and the tax  law
   relating  to  the creation of the workers with disabilities tax credit
   program, in relation to extending the effectiveness thereof (Part  E);
   to  amend the tax law in relation to the inclusion in a decedent's New
   York gross estate any qualified terminable interest property for which
   a prior deduction was allowed and certain pre-death gifts (Part F); to
   amend the tax law, in relation to requiring marketplace  providers  to
   collect  sales tax; and to amend the state finance law, in relation to
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12574-05-9

 S. 1509--C                          2                         A. 2009--C
 
   establishing the New York central business district trust  fund  (Part
   G);  to  amend the tax law, in relation to eliminating the reduced tax
   rates under the sales and use tax with  respect  to  certain  gas  and
   electric  service; and to repeal certain provisions of the tax law and
   the administrative code of the city of New York related thereto  (Part
   H);  to  amend  the real property tax law, in relation to the determi-
   nation and use of state equalization  rates  (Part  I);  intentionally
   omitted  (Subpart  A); to amend the real property tax law, in relation
   to authorizing agreements for assessment review services (Subpart  B);
   to  amend  the  real  property tax law, in relation to the training of
   assessors and county directors of real property tax services  (Subpart
   C);  to  amend  the  real  property  tax law, in relation to providing
   certain notifications electronically (Subpart D); to  amend  the  real
   property  tax  law,  in  relation  to the valuation and taxable status
   dates of special franchise property (Subpart E); and to amend the real
   property tax law, in relation to the reporting requirements  of  power
   plants  (Subpart  F)  (Part  J);  to repeal section 3-d of the general
   municipal law, relating to certification of compliance with  tax  levy
   limit  (Part  K);  to  amend  the  tax law, in relation to creating an
   employer-provided child care credit (Part L); to amend the tax law, in
   relation to including gambling winnings in New York source income  and
   requiring  withholding  thereon  (Part  M);  to  amend the tax law, in
   relation to the farm workforce retention credit (Part N); to amend the
   tax law, in relation to updating tax preparer penalties; to amend part
   N of chapter 61 of the laws of 2005, amending the tax law relating  to
   certain  transactions  and  related  information  and  relating to the
   voluntary compliance initiative,  in  relation  to  the  effectiveness
   thereof;  and to repeal certain provisions of the tax law, relating to
   tax preparer penalties (Part O); to amend the tax law, in relation  to
   extending the top personal income tax rate for five years (Part P); to
   amend the tax law and the administrative code of the city of New York,
   in  relation  to  extending for five years the limitations on itemized
   deductions for individuals with incomes over one million dollars (Part
   Q); to amend the tax law, in relation to extending the  clean  heating
   fuel  credit  for  three  years  (Part R); to amend subdivision (e) of
   section 23 of part U of chapter 61 of the laws of  2011  amending  the
   real  property  tax law and other laws relating to establishing stand-
   ards for electronic tax administration, in relation to  extending  the
   provisions thereof (Part S); to amend the cooperative corporations law
   and  the  rural  electric  cooperative law, in relation to eliminating
   certain license fees (Part T); to amend the tax law, in relation to  a
   credit  for  the rehabilitation of historic properties for state owned
   property leased to private entities (Part U); to amend the tax law, in
   relation to exempting from sales and use tax certain tangible personal
   property or services (Part V); to amend the mental hygiene law and the
   tax law, in relation to the creation and administration of a tax cred-
   it for employment of eligible individuals in recovery from a substance
   use disorder (Part W); to amend the tax  law  and  the  administrative
   code of the city of New York, in relation to excluding from entire net
   income certain contributions to the capital of a corporation (Part X);
   intentionally  omitted (Part Y); to amend the tax law, the administra-
   tive code of the city of New York, and chapter 369 of the laws of 2018
   amending the tax law relating to unrelated business taxable income  of
   a  taxpayer, in relation to making technical corrections thereto (Part
   Z); to amend the real property tax law, in relation to tax  exemptions
   for  energy systems (Part AA); to amend the racing, pari-mutuel wager-

 S. 1509--C                          3                         A. 2009--C
 
   ing and breeding law, in relation to pre-employment  restrictions  for
   certain  prospective  employees  of  the state gaming commission (Part
   BB); intentionally omitted (Part CC); intentionally  omitted  (Subpart
   A);  to  amend  the  racing, pari-mutuel wagering and breeding law, in
   relation to appointees to the thoroughbred  breeding  and  development
   fund (Subpart B); to amend the racing, pari-mutuel wagering and breed-
   ing  law,  in  relation to acquisition of funds for the Harry M. Zweig
   memorial fund (Subpart C); and to amend the tax law,  in  relation  to
   the  prize  payment  amounts and revenue distributions of lottery game
   sales, and use of unclaimed prize funds (Subpart D)(Part DD); to amend
   the tax law, in relation to commissions paid  to  the  operator  of  a
   video  lottery  facility;  to  repeal  certain  provisions of such law
   relating thereto; and providing for the repeal of  certain  provisions
   upon  expiration  thereof  (Part EE); to amend the racing, pari-mutuel
   wagering and breeding law, in relation to the deductibility of  promo-
   tional  credits  (Part  FF); to amend the racing, pari-mutuel wagering
   and breeding law, in relation to the operations of  off-track  betting
   corporations  (Part GG); to amend the racing, pari-mutuel wagering and
   breeding law, in relation to licenses for simulcast  facilities,  sums
   relating  to  track  simulcast, simulcast of out-of-state thoroughbred
   races, simulcasting of races run by out-of-state  harness  tracks  and
   distributions  of  wagers;  to  amend  chapter 281 of the laws of 1994
   amending the racing, pari-mutuel wagering and breeding law  and  other
   laws  relating  to  simulcasting  and  chapter 346 of the laws of 1990
   amending the racing, pari-mutuel wagering and breeding law  and  other
   laws  relating to simulcasting and the imposition of certain taxes, in
   relation to extending certain provisions thereof;  and  to  amend  the
   racing,  pari-mutuel wagering and breeding law, in relation to extend-
   ing certain provisions thereof (Part HH); intentionally omitted  (Part
   II);  to amend part EE of chapter 59 of the laws of 2018, amending the
   racing, pari-mutuel wagering and breeding law, relating  to  adjusting
   the franchise payment establishing an advisory committee to review the
   structure, operations and funding of equine drug testing and research,
   in  relation to the date of delivery for recommendations; and to amend
   the racing, pari-mutuel wagering and breeding law, in relation to  the
   advisory  committee  on  equine  drug  testing, and equine lab testing
   provider restrictions removal (Part JJ); intentionally  omitted  (Part
   KK);  to  amend the real property tax law and the tax law, in relation
   to the determination of STAR tax savings (Part LL); to amend  the  tax
   law,  in  relation  to  cooperative  housing  corporation  information
   returns (Part MM); to amend the tax law, in relation to making a tech-
   nical correction to the enhanced real  property  tax  circuit  breaker
   credit  (Part  NN); to amend the real property law and the tax law, in
   relation to mobile home reporting requirements (Part OO); to amend the
   real property tax law and the tax law, in relation to eligibility  for
   STAR  exemptions and credits (Part PP); to amend the real property tax
   law and the tax law, in relation  to  authorizing  the  disclosure  of
   certain information to assessors (Part QQ); to amend the real property
   tax  law  and  the  tax law, in relation to the income limits for STAR
   benefits (Part RR); to amend the real property tax law, in relation to
   clarifying certain notices on school tax bills (Part SS); to amend the
   real property tax law and the tax law, in relation to making the  STAR
   program  more accessible to taxpayers (Part TT); to amend the tax law,
   in relation to imposing a supplemental tax on vapor products;  and  to
   amend  the  state finance law, in relation to adding revenues from the
   supplemental tax on vapor products  to  the  health  care  reform  act

 S. 1509--C                          4                         A. 2009--C
 
   resource fund (Part UU); intentionally omitted (Part VV); to amend the
   tax  law,  in  relation  to  imposing  a  special tax on passenger car
   rentals outside of the metropolitan commuter  transportation  district
   (Part  WW);  to  amend  the  tax law, in relation to imposing a tax on
   opioids; and to amend part NN of chapter  57  of  the  laws  of  2018,
   amending  the public health law and the state finance law, relating to
   enacting the opioid stewardship act, in relation to the  applicability
   thereof  (Part  XX); to amend the tax law, in relation to the employer
   compensation expense tax (Part YY); to amend the  racing,  pari-mutuel
   wagering  and  breeding law, in relation to the New York Jockey Injury
   Compensation Fund, Inc. (Part ZZ); to amend the tax law,  in  relation
   to  the empire state commercial production credit (Part AAA); to amend
   the tax law and the administrative code of the city of  New  York,  in
   relation  to  the  taxation of estates and trusts (Part BBB); to amend
   the tax law, in relation to exempting items of  food  and  drink  when
   sold from certain vending machines from the sales and compensating use
   tax  (Part CCC); to amend the tax law, in relation to required disclo-
   sure on a bill, memorandum, receipt or other statement of price  (Part
   DDD);  to  amend the tax law, in relation to the enforcement of delin-
   quent tax liabilities by means of the suspension of licenses to  oper-
   ate  a  motor vehicle (Part EEE); to amend the tax law, in relation to
   exempting tangible personal property that becomes a component part  of
   a  monument  (Part FFF); to amend subpart K of part II of a chapter of
   the laws of 2019 amending the public officers law relating to  prohib-
   iting  disclosure  of  law  enforcement booking information and photo-
   graphs, as proposed in legislative bill numbers S.1505-C and A.2005-C,
   in relation to booking photographs; and to amend the  public  officers
   law, in relation to the arrest or booking photographs of an individual
   (Part GGG); to amend part TT of a chapter of the laws of 2019 relating
   to  the closure of correctional facilities, as proposed in legislative
   bill numbers S.1505-C and A.2005-C,  in  relation  to  increasing  the
   number  of  correctional facilities which may be closed (Part HHH); to
   amend the transportation law, the vehicle  and  traffic  law  and  the
   insurance  law,  in  relation to limousine safety (Part III); to amend
   the criminal procedure law, in relation to the  issuance  of  securing
   orders  and  in  relation  to making conforming changes; and to repeal
   certain provisions of such law relating thereto (Part JJJ);  to  amend
   the  criminal  procedure  law, in relation to time limits for a speedy
   trial (Part KKK); to amend the criminal procedure law  and  the  penal
   law,  in relation to establishing new criminal discovery rules; and to
   repeal article 240 of the  criminal  procedure  law  relating  thereto
   (Part  LLL); to amend the penal law, in relation to certain resentenc-
   ing by operation of law; and to amend the criminal procedure  law,  in
   relation to grounds to vacate judgment (Part MMM); to amend chapter 97
   of the laws of 2011, amending the general municipal law and the educa-
   tion  law  relating  to  establishing  limits upon school district and
   local government tax levies, in relation to making the tax cap  perma-
   nent  (Part  NNN);  to  amend the tax law, in relation to amending the
   real estate transfer tax (Part OOO); to amend the  state  finance  law
   and the tax law, in relation to base level grants for per capita state
   aid  for  the support of local government (Part PPP); to amend part KK
   of a chapter of the laws of 2019 directing the department of health to
   conduct a study relating to staffing enhancement and  patient  safety,
   as  proposed  in  legislative  bill  numbers S.1507-C and A.2007-C, in
   relation to making a technical amendment  (Part  QQQ);  to  amend  the
   highway  law  and  the transportation corporations law, in relation to

 S. 1509--C                          5                         A. 2009--C
 
   granting the commissioner of transportation authority  to  enter  into
   agreements  with  fiber  optic  utilities for use and occupancy of the
   state right of way; and providing for the repeal  of  such  provisions
   upon  expiration thereof (Part RRR); to amend the tax law, in relation
   to extending the empire state film production credit and empire  state
   film  post  production credit for two years (Part SSS); to provide for
   the administration of certain funds and accounts related to the  2019-
   20  budget,  authorizing  certain payments and transfers; to amend the
   New York state urban development corporation act, in relation  to  the
   issuance  of certain bonds or notes; to amend part D of chapter 389 of
   the laws of 1997, relating to the financing of the correctional facil-
   ities improvement fund and the youth  facility  improvement  fund,  in
   relation  to  the  issuance  of  certain  bonds or notes; to amend the
   private housing finance law, in relation to the issuance of  bonds  or
   notes;  to  amend  chapter 329 of the laws of 1991, amending the state
   finance law and other laws relating to the establishment of the  dedi-
   cated  highway  and  bridge trust fund, in relation to the issuance of
   certain bonds or notes;  to  amend  the  public  authorities  law,  in
   relation to the issuance of certain bonds or notes; to amend part Y of
   chapter 61 of the laws of 2005, relating to providing for the adminis-
   tration of certain funds and accounts related to the 2005-2006 budget,
   in relation to the issuance of certain bonds or notes; to amend part X
   of  chapter  59  of  the  laws of 2004, authorizing the New York state
   urban development corporation and the dormitory authority of the state
   of New York to issue bonds or notes, in relation to  the  issuance  of
   such  bonds  or  notes;  to  amend part K of chapter 81 of the laws of
   2002, relating to providing for the administration  of  certain  funds
   and accounts related to the 2002-2003 budget, in relation to the issu-
   ance  of certain bonds or notes; to amend part D of chapter 389 of the
   laws of 1997 relating to the financing of the correctional  facilities
   improvement  fund and the youth facility improvement fund, in relation
   to the issuance of certain bonds or notes; to amend the New York state
   medical care facilities finance agency act, in relation to  the  issu-
   ance  of  certain  bonds  or  notes; to amend the New York state urban
   development corporations act, in relation to the issuance  of  certain
   bonds  or  notes; to amend the facilities development corporation act,
   in relation to the mental hygiene facilities improvement  fund  income
   account;  and  to  amend  the state finance law, in relation to mental
   health  services  fund;  and  providing  for  the  repeal  of  certain
   provisions  upon  expiration thereof (Part TTT); to amend part II of a
   chapter of the laws of 2019 amending chapter 141 of the laws  of  1994
   amending the legislative law and the state finance law relating to the
   operation  and administration of the legislature relating to extending
   such provisions, as proposed in legislative bill numbers S.1507-C  and
   A.2007-C,  in  relation to the findings and determinations made by the
   compensation committee (Part UUU); to amend part E of  chapter  60  of
   the  laws  of 2015, establishing a commission on legislative, judicial
   and executive compensation, and providing for the powers and duties of
   the commission and for the dissolution of the commission, in  relation
   to  the  powers  of the members of the commission (Part VVV); to amend
   the infrastructure investment act, in relation to extending the effec-
   tiveness thereof; and to amend the transformational economic  develop-
   ment  infrastructure  and  revitalization projects act, in relation to
   extending the effectiveness thereof  (Part  WWW);  creating  a  public
   campaign  financing  and  election commission (Part XXX); to amend the
   education law, in relation to contracts for excellence and the  appor-

 S. 1509--C                          6                         A. 2009--C
 
   tionment  of public moneys; to amend the education law, in relation to
   a statement of the total funding allocation; to  amend  the  education
   law,  in  relation  to  universal  pre-kindergarten  aid; to amend the
   education law, in relation to moneys apportioned for boards of cooper-
   ative  educational  services aidable expenditures; to amend the educa-
   tion law, in relation to supplemental public excess cost aid; to amend
   the education law, in relation to academic enhancement aid;  to  amend
   the education law, in relation to high tax aid; to amend the education
   law,  in relation to the statewide universal full-day pre-kindergarten
   program; to amend the education law, in relation to  the  teachers  of
   tomorrow  teacher  recruitment  and  retention  program;  to amend the
   education law, in relation to class sizes for special classes contain-
   ing certain students with disabilities; to amend the education law, in
   relation to waivers from  duties;  to  amend  the  education  law,  in
   relation  to  annual  teacher  and principal evaluations; to amend the
   education law, in relation to the education of homeless  children;  to
   amend  chapter  56  of  the  laws  of 2014, amending the education law
   relating to providing that  standardized  test  scores  shall  not  be
   included  on  a  student's permanent record, in relation to the effec-
   tiveness thereof; to amend the  education  law,  in  relation  to  the
   suspension  of  pupils;  to  amend  the  education law, in relation to
   school safety plans; to amend chapter 756 of the laws of 1992,  relat-
   ing  to  funding  a  program for work force education conducted by the
   consortium for worker education in  New  York  city,  in  relation  to
   reimbursements  for the 2019-2020 school year; to amend chapter 756 of
   the laws of 1992, relating to funding a program for work force  educa-
   tion  conducted  by  the  consortium  for worker education in New York
   city, in relation to withholding a portion of  employment  preparation
   education  aid  and in relation to the effectiveness thereof; to amend
   the education law, in relation  to  employment  education  preparation
   programs; to amend chapter 82 of the laws of 1995, amending the educa-
   tion  law and other laws relating to state aid to school districts and
   the appropriation of funds for the support of government, in  relation
   to  the  effectiveness  thereof;  to  amend chapter 147 of the laws of
   2001, amending the education law relating to  conditional  appointment
   of  school district, charter school or BOCES employees, in relation to
   the effectiveness thereof; to amend chapter 425 of the laws  of  2002,
   amending  the  education law relating to the provision of supplemental
   educational services, attendance at  a  safe  public  school  and  the
   suspension  of pupils who bring a firearm to or possess a firearm at a
   school, in relation to the effectiveness thereof; to amend chapter 101
   of the laws of 2003, amending the education law relating to  implemen-
   tation  of  the  No  Child Left Behind Act of 2001, in relation to the
   effectiveness thereof; to amend chapter 91 of the laws of 2002, amend-
   ing the education law and other laws relating to reorganization of the
   New York city school construction authority, board  of  education  and
   community  boards,  in relation to the effectiveness thereof; to amend
   chapter 345 of the laws of 2009, amending the education law and  other
   laws  relating  to  the  New York city board of education, chancellor,
   community councils, and community superintendents, in relation to  the
   effectiveness  thereof;  to  amend  the  education law, in relation to
   providing community councils with an opportunity  to  meet  candidates
   for  community  superintendent, to the removal of members of the board
   of education of the city of New York, to establishing a task force  on
   community  district  education  councils, to the qualifications of the
   chancellor, and to proposals for school closings or significant chang-

 S. 1509--C                          7                         A. 2009--C
 
   es in utilization; to amend chapter 472 of the laws of 1998,  amending
   the  education  law  relating  to  the lease of school buses by school
   districts, in relation to the effectiveness thereof; to amend  chapter
   552  of  the  laws  of  1995,  amending  the education law relating to
   contracts for the transportation of school children,  in  relation  to
   the  effectiveness  thereof;  to amend chapter 97 of the laws of 2011,
   amending the education law relating to census reporting,  in  relation
   to  the effectiveness thereof; to amend chapter 89 of the laws of 2016
   relating to supplementary funding for dedicated  programs  for  public
   school  students  in  the  East  Ramapo  central  school  district, in
   relation to the effectiveness thereof; in relation to school bus driv-
   er training; in relation to special apportionment for salary  expenses
   and  public  pension accruals; in relation to the city school district
   of the city of Rochester; in relation to total foundation aid for  the
   purpose of the development, maintenance or expansion of certain magnet
   schools  or  magnet  school programs for the 2019-2020 school year; in
   relation to the support of public libraries; to amend chapter  121  of
   the  laws  of  1996  relating  to authorizing the Roosevelt union free
   school district to finance deficits by the issuance of  serial  bonds,
   in  relation to certain apportionments; to amend the education law, in
   relation to requiring school districts  to  conduct  building  surveys
   every  five  years;  to  amend the education law, in relation to addi-
   tional apportionment of building aid for building condition surveys of
   school buildings; to amend the education law, in relation to  building
   aid  for  testing  and  filtering  of  potable  water systems for lead
   contamination; to amend the education law, in relation to  inspections
   of  public  school  buildings;  to amend the general municipal law, in
   relation to retirement contribution reserve funds; to repeal  subpara-
   graphs  2  and  3 of paragraph a of subdivision 1 of section 3609-a of
   the education law, relating to lottery apportionment and lottery text-
   book apportionment and to repeal a chapter of the laws of 2019  amend-
   ing the education law relating to state assessments and teacher evalu-
   ations,  as  proposed  in legislative bills numbers S. 1262 and A. 783
   (Part YYY); to amend the  vehicle  and  traffic  law  and  the  public
   authorities  law,  in  relation  to  establishing  a  central business
   district tolling program in the city of New York;  and  to  amend  the
   public  officers law, in relation to confidentiality of certain public
   records (Subpart A); to amend the public authorities law, in  relation
   to  allowing  the  assignment,  transfer,  sharing or consolidating of
   powers, functions or activities  of  the  metropolitan  transportation
   authority;  establishes  an  independent  forensic audit and the major
   construction review unit (Subpart B); to amend the public  authorities
   law,  in relation to various procurement processes of the metropolitan
   transportation authority (Subpart C); to amend the public  authorities
   law,  in  relation  to  metropolitan  transportation authority transit
   performance metrics (Subpart D); to amend the public authorities  law,
   in  relation  to the submission of a twenty-year capital needs assess-
   ment (Subpart E); and to amend the tax law, in relation to  a  central
   business district toll credit (Subpart F) (Part ZZZ); and to amend the
   public  authorities  law,  in relation to voting by members of the New
   York state authorities control board (Part AAAA)
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

 S. 1509--C                          8                         A. 2009--C
 
   Section  1.  This  act enacts into law major components of legislation
 which are necessary to implement the state fiscal plan for the 2019-2020
 state fiscal year. Each component is  wholly  contained  within  a  Part
 identified  as Parts A through AAAA. The effective date for each partic-
 ular  provision  in  any  section contained within a Part, including the
 effective date of the Part, which makes a reference  to  a  section  "of
 this act", when used in connection with that particular component, shall
 be  deemed to mean and refer to the corresponding section of the Part in
 which it is found. Section three of this  act  sets  forth  the  general
 effective date of this act.
 
                                  PART A
 
   Section 1. Intentionally omitted.
   § 2. Intentionally omitted.
   § 3. Intentionally omitted.
   § 4. Intentionally omitted.
   §  5. Subdivisions (a), (c) and (d) of section 23 of part U of chapter
 61 of the laws of 2011, amending the real property  tax  law  and  other
 laws  relating  to  establishing  standards  for electronic tax adminis-
 tration, as amended by section 5 of part G of chapter 60 of the laws  of
 2016, are amended to read as follows:
   (a)  the amendments to section 29 of the tax law made by section thir-
 teen of this act shall apply to tax documents filed or  required  to  be
 filed  on  or  after  the  sixtieth  day after which this act shall have
 become a law and shall expire and be deemed repealed December 31, [2019]
 2024, provided however that the amendments to paragraph 4 of subdivision
 (a) of section 29 of the tax law and paragraph 2 of subdivision  (e)  of
 section  29  of  the  tax  law made by section thirteen of this act with
 regard to individual taxpayers shall take effect September 15, 2011  but
 only  if  the  commissioner  of taxation and finance has reported in the
 report required by section seventeen-b of this act that  the  percentage
 of  individual  taxpayers  electronically  filing  their 2010 income tax
 returns is less than eighty-five percent; provided that the commissioner
 of taxation and finance  shall  notify  the  legislative  bill  drafting
 commission  of the date of the issuance of such report in order that the
 commission may maintain an accurate and timely effective  data  base  of
 the official text of the laws of the state of New York in furtherance of
 effectuating  the  provisions  of  section 44 of the legislative law and
 section 70-b of the public officers law;
   (c) sections fourteen-a and fifteen-a of this act  shall  take  effect
 September  15,  2011 and expire and be deemed repealed December 31, 2012
 but shall take effect only if the commissioner of taxation  and  finance
 has  reported  in the report required by section seventeen-b of this act
 that the percentage of individual taxpayers electronically filing  their
 2010 income tax returns is eighty-five percent or greater;
   (d)  sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this
 act shall take effect January 1, [2020] 2025 but only if the commission-
 er of taxation and finance  has  reported  in  the  report  required  by
 section  seventeen-b  of  this  act  that  the  percentage of individual
 taxpayers electronically filing their 2010 income tax  returns  is  less
 than eighty-five percent; and
   § 6. This act shall take effect immediately.
 
                                  PART B

 S. 1509--C                          9                         A. 2009--C
 
   Section  1.  Subdivision  3 of section 441 of the economic development
 law, as amended by section 1 of part L of chapter  59  of  the  laws  of
 2017, is amended to read as follows:
   3.  "Eligible  training"  means  (a) training provided by THE BUSINESS
 ENTITY OR an approved provider that is:
   (i) to upgrade, retrain or improve the productivity of employees;
   (ii) provided to employees in connection with  a  significant  capital
 investment by a participating business entity;
   (iii) determined by the commissioner to satisfy a business need on the
 part of a participating business entity;
   (iv)  not designed to train or upgrade skills as required by a federal
 or state entity;
   (v) not training the completion of which may result in the awarding of
 a license or certificate required by law in order to perform a job func-
 tion; and
   (vi) not culturally focused training; or
   (b) an internship program in advanced technology [or], life  sciences,
 SOFTWARE  DEVELOPMENT  OR  CLEAN ENERGY approved by the commissioner and
 provided by THE BUSINESS ENTITY OR an approved  provider,  on  or  after
 August first, two thousand fifteen, to provide employment and experience
 opportunities for current students, recent graduates, and recent members
 of the armed forces.
   §  2.  Paragraph  (b)  of subdivision 1 of section 442 of the economic
 development law, as amended by section 2 of part L of chapter 59 of  the
 laws of 2017, is amended to read as follows:
   (b)  The business entity must demonstrate that it is CONDUCTING ELIGI-
 BLE TRAINING OR obtaining eligible training from an approved provider;
   § 3. Paragraph (a) of subdivision 2 of section  443  of  the  economic
 development  law,  as  added by section 1 of part O of chapter 59 of the
 laws of 2015, is amended to read as follows:
   (a) provide such documentation as  the  commissioner  may  require  in
 order for the commissioner to determine that the business entity intends
 to  CONDUCT  ELIGIBLE  TRAINING  OR  procure  eligible  training for its
 employees from an approved provider;
   § 4. This act shall take effect immediately.
 
                                  PART C
 
   Section 1. Section 210-A of the tax law is amended  by  adding  a  new
 subdivision 5-a to read as follows:
   5-A.  NET  GLOBAL  INTANGIBLE  LOW-TAXED INCOME.   NOTWITHSTANDING ANY
 OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED  INCOME
 SHALL  BE  INCLUDED  IN  THE  APPORTIONMENT FRACTION AS PROVIDED IN THIS
 SUBDIVISION.  RECEIPTS  CONSTITUTING  NET  GLOBAL  INTANGIBLE  LOW-TAXED
 INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRAC-
 TION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL
 BE  INCLUDED  IN  THE  DENOMINATOR  OF  THE  APPORTIONMENT FRACTION. FOR
 PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE  LOW-TAXED
 INCOME"  MEANS  THE  AMOUNT  REQUIRED  TO  BE INCLUDED IN THE TAXPAYER'S
 FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A  OF  THE
 INTERNAL  REVENUE  CODE  LESS  THE AMOUNT OF THE DEDUCTION ALLOWED UNDER
 CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE.
   § 2. Section 11-654.2 of the administrative code of the  city  of  New
 York is amended by adding a new subdivision 5-a to read as follows:
   5-A.  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SECTION, NET GLOBAL
 INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE  RECEIPTS  FRACTION

 S. 1509--C                         10                         A. 2009--C
 
 AS  PROVIDED  IN  THIS  SUBDIVISION.    RECEIPTS CONSTITUTING NET GLOBAL
 INTANGIBLE LOW-TAXED INCOME SHALL NOT BE INCLUDED IN  THE  NUMERATOR  OF
 THE  RECEIPTS FRACTION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-
 TAXED  INCOME SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC-
 TION.  FOR PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE
 LOW-TAXED INCOME" MEANS THE  AMOUNT  REQUIRED  TO  BE  INCLUDED  IN  THE
 TAXPAYER'S  FEDERAL  GROSS  INCOME PURSUANT TO SUBSECTION (A) OF SECTION
 951A OF THE INTERNAL REVENUE CODE  LESS  THE  AMOUNT  OF  THE  DEDUCTION
 ALLOWED UNDER CLAUSE (I) OF SECTION 250(A)(1)(B) OF SUCH CODE.
   §  3.  Subparagraph (2) of paragraph (a) of subdivision (3) of section
 11-604 of the administrative code of the city of New York is amended  by
 adding a new clause (E) to read as follows:
   (E)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS PARAGRAPH, NET GLOBAL
 INTANGIBLE LOW-TAXED INCOME SHALL BE INCLUDED IN THE  RECEIPTS  FRACTION
 AS  PROVIDED IN THIS CLAUSE. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE
 LOW-TAXED INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE  RECEIPTS
 FRACTION.  RECEIPTS  CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME
 SHALL BE INCLUDED IN THE  DENOMINATOR  OF  THE  RECEIPTS  FRACTION.  FOR
 PURPOSES  OF  THIS  CLAUSE,  THE  TERM  "NET GLOBAL INTANGIBLE LOW-TAXED
 INCOME" MEANS THE AMOUNT THAT WOULD HAVE BEEN REQUIRED TO BE INCLUDED IN
 THE TAXPAYER'S FEDERAL  GROSS  INCOME  PURSUANT  TO  SUBSECTION  (A)  OF
 SECTION  951A  OF  THE  INTERNAL  REVENUE  CODE  LESS  THE AMOUNT OF THE
 DEDUCTION THAT WOULD HAVE BEEN  ALLOWED  UNDER  CLAUSE  (I)  OF  SECTION
 250(A)(1)(B) OF SUCH CODE IF THE TAXPAYER HAD NOT MADE AN ELECTION UNDER
 SUBCHAPTER S OF CHAPTER ONE OF THE INTERNAL REVENUE CODE.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART D
 
   Section  1.  Subparagraph  (vi)  of  paragraph (a) of subdivision 1 of
 section 210 of the tax law, as amended by section 11 of part T of  chap-
 ter 59 of the laws of 2015, is amended to read as follows:
   (vi)  for taxable years beginning on or after January first, two thou-
 sand fourteen, the amount prescribed by this paragraph  for  a  taxpayer
 [which]  THAT is a qualified New York manufacturer, shall be computed at
 the rate of zero percent of the taxpayer's  business  income  base.  The
 term  "manufacturer" shall mean a taxpayer [which] THAT during the taxa-
 ble year is principally engaged in the production of goods  by  manufac-
 turing,  processing,  assembling, refining, mining, extracting, farming,
 agriculture, horticulture, floriculture, viticulture or commercial fish-
 ing. However,  the  generation  and  distribution  of  electricity,  the
 distribution of natural gas, and the production of steam associated with
 the  generation  of electricity shall not be qualifying activities for a
 manufacturer under  this  subparagraph.  Moreover,  in  the  case  of  a
 combined report, the combined group shall be considered a "manufacturer"
 for  purposes of this subparagraph only if the combined group during the
 taxable year is principally engaged in the activities set forth in  this
 paragraph,  or  any combination thereof. A taxpayer or, in the case of a
 combined report, a combined group  shall  be  "principally  engaged"  in
 activities  described above if, during the taxable year, more than fifty
 percent of the gross receipts of the taxpayer or combined group, respec-
 tively, are derived from receipts from the sale  of  goods  produced  by
 such  activities. In computing a combined group's gross receipts, inter-
 corporate receipts shall be eliminated. A "qualified New  York  manufac-
 turer"  is  a manufacturer [which] THAT has property in New York [which]

 S. 1509--C                         11                         A. 2009--C
 
 THAT is described in clause (A) of subparagraph (i) of paragraph (b)  of
 subdivision  one of section two hundred ten-B of this article and either
 (I) the adjusted basis of such property for [federal  income]  NEW  YORK
 STATE  tax  purposes  at  the  close of the taxable year is at least one
 million dollars or (II) all of its real and personal property is located
 in New York. A taxpayer or, in the case of a combined report, a combined
 group, that does not satisfy the principally engaged test may be a qual-
 ified New York manufacturer  if  the  taxpayer  or  the  combined  group
 employs  during  the  taxable  year  at  least two thousand five hundred
 employees in manufacturing in New York and the taxpayer or the  combined
 group  has  property  in  the  state used in manufacturing, the adjusted
 basis of which for [federal income] NEW YORK STATE tax purposes  at  the
 close of the taxable year is at least one hundred million dollars.
   §  2.  Subparagraph 2 of paragraph (b) of subdivision 1 of section 210
 of the tax law, as amended by section 18 of part T of chapter 59 of  the
 laws of 2015, is amended to read as follows:
   (2)  For  purposes  of  subparagraph  one  of this paragraph, the term
 "manufacturer" shall mean a taxpayer [which]  THAT  during  the  taxable
 year is principally engaged in the production of goods by manufacturing,
 processing,  assembling, refining, mining, extracting, farming, agricul-
 ture, horticulture, floriculture,  viticulture  or  commercial  fishing.
 Moreover,  for  purposes  of  computing  the  capital base in a combined
 report, the combined group shall  be  considered  a  "manufacturer"  for
 purposes  of  this  subparagraph  only  if the combined group during the
 taxable year is principally engaged in the activities set forth in  this
 subparagraph,  or any combination thereof. A taxpayer or, in the case of
 a combined report, a combined group shall be  "principally  engaged"  in
 activities  described above if, during the taxable year, more than fifty
 percent of the gross receipts of the taxpayer or combined group, respec-
 tively, are derived from receipts from the sale  of  goods  produced  by
 such  activities. In computing a combined group's gross receipts, inter-
 corporate receipts shall be eliminated. A "qualified New  York  manufac-
 turer" is a manufacturer that has property in New York that is described
 in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of
 section  two  hundred  ten-B of this article and either (i) the adjusted
 basis of that property for [federal income] NEW YORK STATE tax  purposes
 at the close of the taxable year is at least one million dollars or (ii)
 all  of  its real and personal property is located in New York. In addi-
 tion, a "qualified New York  manufacturer"  means  a  taxpayer  that  is
 defined  as  a qualified emerging technology company under paragraph (c)
 of subdivision one of section thirty-one hundred  two-e  of  the  public
 authorities   law  regardless  of  the  ten  million  dollar  limitation
 expressed in subparagraph one of such paragraph. A taxpayer or,  in  the
 case  of  a combined report, a combined group, that does not satisfy the
 principally engaged test may be a qualified New York manufacturer if the
 taxpayer or the combined group employs during the taxable year at  least
 two thousand five hundred employees in manufacturing in New York and the
 taxpayer  or  the combined group has property in the state used in manu-
 facturing, the adjusted basis of which for  [federal  income]  NEW  YORK
 STATE  tax  purposes  at  the  close of the taxable year is at least one
 hundred million dollars.
   § 3. Clause (ii) of subparagraph 4 of paragraph (k) of  subdivision  1
 of section 11-654 of the administrative code of the city of New York, as
 added  by  section  1  of  part  D of chapter 60 of the laws of 2015, is
 amended to read as follows:

 S. 1509--C                         12                         A. 2009--C

   (ii) A "qualified New York manufacturing corporation" is a manufactur-
 ing corporation that has property in the state [which] THAT is described
 in subparagraph five of this paragraph and either (A) the adjusted basis
 of such property for [federal income] NEW YORK STATE tax purposes at the
 close  of  the  taxable year is at least one million dollars or (B) more
 than fifty [percentum] PERCENT of its  real  and  personal  property  is
 located in the state.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART E
 
   Section  1.  Section  5  of  part MM of chapter 59 of the laws of 2014
 amending the labor law and the tax law relating to the creation  of  the
 workers  with  disabilities  tax  credit  program  is amended to read as
 follows:
   § 5. This act shall take effect January 1, 2015, and  shall  apply  to
 taxable  years beginning on and after that date; provided, however, that
 this act shall expire and be deemed repealed January 1, [2020] 2023.
   § 2. This act shall take effect immediately.
 
                                  PART F
 
   Section 1. Paragraph 3 of subsection (a) of section  954  of  the  tax
 law,  as  amended  by  section 2 of part BB of chapter 59 of the laws of
 2015, is amended to read as follows:
   (3) Increased by the amount of any taxable gift under section 2503  of
 the  internal  revenue  code  not  otherwise  included in the decedent's
 federal gross estate, made during the three year period  ending  on  the
 decedent's  date of death, but not including any gift made: (A) when the
 decedent was not a resident of New  York  state;  or  (B)  before  April
 first, two thousand fourteen; or (C) BETWEEN JANUARY FIRST, TWO THOUSAND
 NINETEEN  AND  JANUARY  FIFTEENTH, TWO THOUSAND NINETEEN; OR (D) that is
 real or tangible personal property having an actual  situs  outside  New
 York  state  at  the time the gift was made. Provided, however that this
 paragraph shall not apply to the estate of a [decendent] DECEDENT  dying
 on or after January first, two thousand [nineteen] TWENTY-SIX.
   § 2. Subsection (a) of section 954 of the tax law is amended by adding
 a new paragraph 4 to read as follows:
   (4)  INCREASED  BY  THE  VALUE  OF  ANY PROPERTY NOT OTHERWISE ALREADY
 INCLUDED IN THE DECEDENT'S FEDERAL GROSS ESTATE IN  WHICH  THE  DECEDENT
 HAD  A QUALIFYING INCOME INTEREST FOR LIFE IF A DEDUCTION WAS ALLOWED ON
 THE RETURN OF THE TAX IMPOSED BY THIS ARTICLE WITH RESPECT TO THE TRANS-
 FER OF SUCH PROPERTY TO THE DECEDENT BY REASON  OF  THE  APPLICATION  OF
 PARAGRAPH  (7) OF SUBSECTION (B) OF SECTION 2056 OF THE INTERNAL REVENUE
 CODE, AS MADE APPLICABLE TO THE TAX IMPOSED BY THIS ARTICLE  BY  SECTION
 NINE  HUNDRED  NINETY-NINE-A  OF  THIS ARTICLE, WHETHER OR NOT A FEDERAL
 ESTATE TAX RETURN WAS REQUIRED TO BE FILED BY THE ESTATE OF  THE  TRANS-
 FERRING SPOUSE.
   § 3. Subsection (c) of section 955 of the tax law, as added by section
 4  of  part  X  of chapter 59 of the laws of 2014, is amended to read as
 follows:
   (c) Qualified  terminable  interest  property  election.--  Except  as
 otherwise provided in this subsection, the election referred to in para-
 graph (7) of subsection (b) of section 2056 of the internal revenue code
 shall  not  be  allowed under this article unless such election was made

 S. 1509--C                         13                         A. 2009--C
 
 with respect to the federal estate tax return required to be filed under
 the provisions of the internal revenue code. If such election  was  made
 for the purposes of the federal estate tax, then such election must also
 be  made  by the executor on the return of the tax imposed by this arti-
 cle. Where no federal estate tax return is required  to  be  filed,  the
 executor  [may] MUST make the election referred to in such paragraph (7)
 with respect to the tax imposed by this article on the return of the tax
 imposed by this article. Any election made under this  subsection  shall
 be irrevocable.
   §  4.  This  act  shall take effect immediately; provided however that
 section one of this act shall apply to estates of decedents dying on  or
 after  January  16,  2019  and  sections two and three of this act shall
 apply to estates of decedents dying on or after April 1, 2019.
 
                                  PART G
 
   Section 1. Section 1101 of the tax law is  amended  by  adding  a  new
 subdivision (e) to read as follows:
   (E)  WHEN  USED  IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED
 UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND
 BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL
 MEAN:
   (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT  WITH
 A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY
 SUCH  MARKETPLACE  SELLER  OR  SELLERS.  A PERSON "FACILITATES A SALE OF
 TANGIBLE PERSONAL PROPERTY" FOR PURPOSES  OF  THIS  PARAGRAPH  WHEN  THE
 PERSON  MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES
 THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES  PLACE  OR  THE
 OFFER  OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTER-
 NET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFIL-
 IATE OF SUCH PERSON COLLECTS THE  RECEIPTS  PAID  BY  A  CUSTOMER  TO  A
 MARKETPLACE  SELLER  FOR  A  SALE  OF  TANGIBLE  PERSONAL  PROPERTY,  OR
 CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR  PURPOSES  OF
 THIS PARAGRAPH, A "SALE OF TANGIBLE PERSONAL PROPERTY" SHALL NOT INCLUDE
 THE  RENTAL  OF  A  PASSENGER CAR AS DESCRIBED IN SECTION ELEVEN HUNDRED
 SIXTY OF THIS CHAPTER BUT SHALL INCLUDE A LEASE DESCRIBED IN SUBDIVISION
 (I) OF SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.  FOR  PURPOSES  OF
 THIS  PARAGRAPH,  PERSONS  ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP
 INTEREST OF MORE THAN FIVE  PERCENT,  WHETHER  DIRECT  OR  INDIRECT,  IN
 ANOTHER,  OR  WHERE  AN  OWNERSHIP  INTEREST  OF MORE THAN FIVE PERCENT,
 WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS  BY  ANOTHER
 PERSON  OR  BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH
 RESPECT TO EACH OTHER.  NOTWITHSTANDING ANYTHING IN  THIS  PARAGRAPH,  A
 PERSON  WHO  IS  NOT  OTHERWISE  REGISTERED  PURSUANT  TO SECTION ELEVEN
 HUNDRED THIRTY FOUR OF THIS ARTICLE IS NOT  A  MARKETPLACE  PROVIDER  IF
 SUCH PERSON HAS NO PHYSICAL PRESENCE IN NEW YORK AND, FOR THE IMMEDIATE-
 LY  PRECEDING FOUR QUARTERLY PERIODS ENDING ON THE LAST DAY OF FEBRUARY,
 MAY, AUGUST AND NOVEMBER, CAN  SHOW  THAT  THE  CUMULATIVE  TOTAL  GROSS
 RECEIPTS  OF  SALES  IT HAS MADE OR FACILITATED OF PROPERTY DELIVERED IN
 THIS STATE DOES NOT EXCEED THREE HUNDRED THOUSAND DOLLARS OR  THAT  SUCH
 PERSON  HAS NOT MADE OR FACILITATED MORE THAN ONE HUNDRED SALES OF PROP-
 ERTY DELIVERED IN THIS STATE. HOWEVER, SUCH PERSON MAY ELECT TO REGISTER
 AS A MARKETPLACE PROVIDER, AND, ONCE REGISTERED, WILL BE SUBJECT TO  THE
 PROVISIONS OF THIS ARTICLE.
   (2)  MARKETPLACE  SELLER.  ANY  PERSON,  WHETHER OR NOT SUCH PERSON IS
 REQUIRED TO OBTAIN A  CERTIFICATE  OF  AUTHORITY  UNDER  SECTION  ELEVEN

 S. 1509--C                         14                         A. 2009--C
 
 HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET-
 PLACE  PROVIDER  UNDER  WHICH  THE  MARKETPLACE PROVIDER WILL FACILITATE
 SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF
 PARAGRAPH ONE OF THIS SUBDIVISION.
   §  2.  Subdivision  1  of  section  1131 of the tax law, as amended by
 section 1 of part X of chapter 59 of the laws of  2018,  is  amended  to
 read as follows:
   (1)  "Persons  required to collect tax" or "person required to collect
 any tax imposed by this article" shall include: every vendor of tangible
 personal property or services; every  recipient  of  amusement  charges;
 [and]  every  operator  of  a hotel; AND EVERY MARKETPLACE PROVIDER WITH
 RESPECT TO  SALES  OF  TANGIBLE  PERSONAL  PROPERTY  IT  FACILITATES  AS
 DESCRIBED  IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED
 ONE OF THIS ARTICLE. Said terms shall also include any officer, director
 or employee of a corporation or of a dissolved corporation, any employee
 of a partnership, any employee or manager of a limited liability  compa-
 ny, or any employee of an individual proprietorship who as such officer,
 director,  employee  or  manager  is under a duty to act for such corpo-
 ration, partnership, limited liability company or individual proprietor-
 ship in complying with any requirement of this article, or has so acted;
 and any member of a partnership or limited liability company.  Provided,
 however,  that any person who is a vendor solely by reason of clause (D)
 or (E) of subparagraph (i)  of  paragraph  (8)  of  subdivision  (b)  of
 section  eleven  hundred  one  of  this  article  shall not be a "person
 required to collect any tax imposed by this article" until  twenty  days
 after the date by which such person is required to file a certificate of
 registration  pursuant  to  section  eleven  hundred thirty-four of this
 part.
   § 3. Section 1132 of the tax law is amended by adding a  new  subdivi-
 sion (l) to read as follows:
   (L)(1)  A  MARKETPLACE  PROVIDER  WITH  RESPECT  TO A SALE OF TANGIBLE
 PERSONAL PROPERTY IT FACILITATES: (A) SHALL HAVE ALL THE OBLIGATIONS AND
 RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE  TWENTY-NINE  OF  THIS
 CHAPTER  AND  UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING,
 BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE  OF  AUTHORITY,  TO
 COLLECT  TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF-
 ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION
 OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE  THE  REFUND  AUTHORIZED  BY
 SUBDIVISION  (E)  OF  THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION
 (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT  TO  THE
 PROVISIONS  OF  SUCH  SUBDIVISIONS;  AND (B) SHALL KEEP SUCH RECORDS AND
 INFORMATION AND COOPERATE WITH THE COMMISSIONER  TO  ENSURE  THE  PROPER
 COLLECTION  AND  REMITTANCE  OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE
 COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY  TO
 COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
 SUBJECT  TO  TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF
 THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH  SALE  IN  ITS
 TAXABLE  RECEIPTS  FOR  PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF
 THIS PART IF, IN REGARD TO SUCH SALE: (A)  THE  MARKETPLACE  SELLER  CAN
 SHOW  THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM
 SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED  CERTIFICATE
 OF  COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT
 THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT  SALES  TAX  AND  WILL
 COLLECT  SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY
 THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH

 S. 1509--C                         15                         A. 2009--C
 
 SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE;  AND  (B)  ANY
 FAILURE  OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX
 IN REGARD TO SUCH SALE WAS NOT THE RESULT  OF  SUCH  MARKETPLACE  SELLER
 PROVIDING  THE  MARKETPLACE  PROVIDER  WITH  INCORRECT INFORMATION. THIS
 PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH
 (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A  CERTIF-
 ICATE  OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES
 OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF  SUCH
 CERTIFICATE  OF  COLLECTION  AND  THE  TIMING  OF  ITS ACCEPTANCE BY THE
 MARKETPLACE SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF  TANGIBLE
 PERSONAL  PROPERTY  BY  A  MARKETPLACE  SELLER THAT ARE FACILITATED BY A
 MARKETPLACE PROVIDER WHO IS  AFFILIATED  WITH  SUCH  MARKETPLACE  SELLER
 WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN
 HUNDRED  ONE  OF  THIS  ARTICLE,  THE MARKETPLACE SELLER SHALL BE DEEMED
 LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR
 PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS
 PART.
   (3) THE COMMISSIONER MAY, IN HIS OR  HER  DISCRETION:  (A)  DEVELOP  A
 STANDARD  PROVISION,  OR  APPROVE A PROVISION DEVELOPED BY A MARKETPLACE
 PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO  COLLECT
 THE  TAX  ON  BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM THE MARKET-
 PLACE PROVIDER FACILITATES SALES OF  TANGIBLE  PERSONAL  PROPERTY,  WITH
 RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY
 OCCURS IN THE STATE; AND (B) PROVIDE BY REGULATION OR OTHERWISE THAT THE
 INCLUSION  OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN
 THE MARKETPLACE PROVIDER AND  MARKETPLACE  SELLER  WILL  HAVE  THE  SAME
 EFFECT  AS  A  MARKETPLACE  SELLER'S  ACCEPTANCE  OF  A  CERTIFICATE  OF
 COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH  TWO  OF  THIS
 SUBDIVISION.
   §  4.  Section 1133 of the tax law is amended by adding a new subdivi-
 sion (f) to read as follows:
   (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION
 FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT  THE
 MARKETPLACE  PROVIDER  CAN  SHOW  THAT THE ERROR WAS DUE TO INCORRECT OR
 INSUFFICIENT INFORMATION  GIVEN  TO  THE  MARKETPLACE  PROVIDER  BY  THE
 MARKETPLACE  SELLER. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY
 IF THE MARKETPLACE SELLER AND MARKETPLACE PROVIDER ARE AFFILIATED WITHIN
 THE MEANING OF PARAGRAPH  ONE  OF  SUBDIVISION  (E)  OF  SECTION  ELEVEN
 HUNDRED ONE OF THIS ARTICLE.
   § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
 amended  by  section  46 of part K of chapter 61 of the laws of 2011, is
 amended to read as follows:
   (4) The return of a vendor of tangible personal property  or  services
 shall  show  such vendor's receipts from sales and the number of gallons
 of any motor fuel or diesel motor fuel sold and also the aggregate value
 of tangible personal property and services and number of gallons of such
 fuels sold by the vendor, the use of which is subject to tax under  this
 article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
 provisions of section eleven hundred  thirty-seven  of  this  part.  The
 return  of  a recipient of amusement charges shall show all such charges
 and the amount of tax thereon, and the return of an operator required to
 collect tax on rents shall show all rents received or  charged  and  the
 amount of tax thereon.  THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE
 THE  RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
 MARKETPLACE PROVIDER IF, IN REGARD TO SUCH  SALE:  (A)  THE  MARKETPLACE
 SELLER  HAS  TIMELY  RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF-

 S. 1509--C                         16                         A. 2009--C
 
 ICATE OF COLLECTION FROM THE MARKETPLACE  PROVIDER  OR  THE  MARKETPLACE
 PROVIDER  HAS  INCLUDED  A PROVISION APPROVED BY THE COMMISSIONER IN THE
 PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE  PROVIDER  AND  THE
 MARKETPLACE  SELLER  AS  DESCRIBED  IN SUBDIVISION ONE OF SECTION ELEVEN
 HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE
 MARKETPLACE SELLER TO  THE  MARKETPLACE  PROVIDER  ABOUT  SUCH  TANGIBLE
 PERSONAL PROPERTY IS ACCURATE.
   §  6.  Section 1142 of the tax law is amended by adding a new subdivi-
 sion 15 to read as follows:
   (15) TO PUBLISH A LIST ON  THE  DEPARTMENT'S  WEBSITE  OF  MARKETPLACE
 PROVIDERS  WHOSE  CERTIFICATES  OF  AUTHORITY  HAVE BEEN REVOKED AND, IF
 NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR  OTHER-
 WISE  THAT  A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF THE
 DUTY TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY  FACILITATED
 BY  A  MARKETPLACE  PROVIDER  ONLY  IF,  IN  ADDITION  TO THE CONDITIONS
 PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED
 THIRTY-TWO OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS  NOT  ON
 SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY.
   §  6-a.  Section 1148 of the tax law, as amended by section 57 of part
 HH of chapter 57 of the laws of 2013, is amended to read as follows:
   § 1148. Deposit and disposition of revenue.  (A) All  taxes,  interest
 and penalties collected or received by the commissioner under this arti-
 cle  shall  be  deposited  and disposed of pursuant to the provisions of
 section one hundred seventy-one-a of this chapter; provided however, the
 comptroller shall on or before the twelfth day of each  month,  pay  all
 such  taxes,  interest  and  penalties  collected under this article and
 remaining to the comptroller's credit in such banks, banking  houses  or
 trust  companies at the close of business on the last day of the preced-
 ing month, into the general fund of the state treasury[, except].
   (B) PROVIDED HOWEVER, BEFORE THE FUNDS MAY BE DISTRIBUTED PURSUANT  TO
 SUBDIVISION  (A)  OF  THIS  SECTION,  SUCH FUNDS SHALL BE DISTRIBUTED as
 otherwise provided in sections ninety-two-d, ninety-two-h,  and  ninety-
 two-r  of  the state finance law and sections eleven hundred two, eleven
 hundred four and eleven hundred nine of this article.
   (C) PROVIDED HOWEVER, AFTER FUNDS ARE DISTRIBUTED PURSUANT TO SUBDIVI-
 SION (B) OF THIS SECTION BUT BEFORE SUCH FUNDS ARE DISTRIBUTED  PURSUANT
 TO  SUBDIVISION  (A)  OF  THIS  SECTION, FUNDS SHALL BE DEPOSITED BY THE
 COMPTROLLER INTO THE NEW  YORK  CENTRAL  BUSINESS  DISTRICT  TRUST  FUND
 ESTABLISHED  PURSUANT TO SECTION NINETY-NINE-FF OF THE STATE FINANCE LAW
 IN ACCORDANCE WITH THE FOLLOWING SCHEDULE: (1) IN STATE FISCAL YEAR  TWO
 THOUSAND NINETEEN - TWO THOUSAND TWENTY, ONE HUNDRED TWELVE MILLION FIVE
 HUNDRED THOUSAND DOLLARS; (2) IN STATE FISCAL YEAR TWO THOUSAND TWENTY -
 TWO  THOUSAND  TWENTY-ONE, ONE HUNDRED FIFTY MILLION DOLLARS; AND (3) IN
 STATE FISCAL YEAR TWO THOUSAND TWENTY-ONE - TWO THOUSAND TWENTY-TWO  AND
 EVERY  SUCCEEDING  STATE FISCAL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED ONE
 PERCENT OF THE AMOUNT  DEPOSITED  IN  THE  IMMEDIATELY  PRECEDING  STATE
 FISCAL  YEAR.  THE  FUNDS  DEPOSITED  INTO THE NEW YORK CENTRAL BUSINESS
 DISTRICT TRUST FUND SHALL BE DEPOSITED MONTHLY IN EQUAL INSTALLMENTS.
   § 6-b. Paragraph 5 of subdivision (c) of section 1261 of the tax  law,
 as added by section 9 of part SS-1 of chapter 57 of the laws of 2008, is
 amended to read as follows:
   (5) (I) However, the comptroller shall withhold from the taxes, penal-
 ties  and  interest  imposed by the city of New York on and after August
 first, two thousand eight, and deposit such amounts to the state  treas-
 ury as reimbursement for appropriated disbursements made by the New York
 state  financial  control board established by the New York state finan-

 S. 1509--C                         17                         A. 2009--C
 
 cial emergency act for the city of New York  and  by  the  state  deputy
 comptroller  for the city of New York established by section forty-one-a
 of the executive law, as the actual, reasonable expenses of  that  board
 or that deputy comptroller, incurred on behalf of the city, for quarter-
 ly  periods commencing July first, two thousand eight, and ending on the
 date when those expenses are no longer incurred by that board or  deputy
 comptroller;  and the comptroller shall pay those withheld amounts imme-
 diately into the miscellaneous special revenue  fund  financial  control
 board  account  339-15 and the miscellaneous special revenue fund finan-
 cial oversight account 339-DI of the state. During the period  that  the
 comptroller  is required to withhold amounts and make payments described
 in this paragraph, the city of New York has no right, title or  interest
 in  or  to  those taxes, penalties and interest required to be paid into
 the above referenced miscellaneous special revenue funds.
   (II) AFTER WITHHOLDING THE TAXES, PENALTIES AND  INTEREST  IMPOSED  BY
 THE  CITY  OF  NEW YORK ON AND AFTER AUGUST FIRST, TWO THOUSAND EIGHT AS
 PROVIDED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH,  THE  COMPTROLLER  SHALL
 WITHHOLD  A  PORTION OF SUCH TAXES, PENALTIES AND INTEREST SUFFICIENT TO
 DEPOSIT ANNUALLY INTO THE  CENTRAL  BUSINESS  DISTRICT  TOLLING  CAPITAL
 LOCKBOX  ESTABLISHED  PURSUANT  TO SECTION FIVE HUNDRED FIFTY-THREE-J OF
 THE PUBLIC AUTHORITIES LAW: (A) IN STATE FISCAL YEAR TWO THOUSAND  NINE-
 TEEN  -  TWO  THOUSAND  TWENTY,  ONE  HUNDRED  TWENTY-SEVEN MILLION FIVE
 HUNDRED THOUSAND DOLLARS; (B) IN STATE FISCAL YEAR TWO THOUSAND TWENTY -
 TWO THOUSAND TWENTY-ONE, ONE HUNDRED SEVENTY MILLION DOLLARS; AND (C) IN
 STATE FISCAL YEAR TWO THOUSAND TWENTY-ONE - TWO THOUSAND TWENTY-TWO  AND
 EVERY  SUCCEEDING  STATE FISCAL YEAR, AN AMOUNT EQUAL TO ONE HUNDRED ONE
 PERCENT OF THE AMOUNT  DEPOSITED  IN  THE  IMMEDIATELY  PRECEDING  STATE
 FISCAL  YEAR.    THE  FUNDS SHALL BE DEPOSITED MONTHLY IN EQUAL INSTALL-
 MENTS. DURING THE PERIOD THAT THE COMPTROLLER IS  REQUIRED  TO  WITHHOLD
 AMOUNTS  AND  MAKE PAYMENTS DESCRIBED IN THIS PARAGRAPH, THE CITY OF NEW
 YORK HAS NO RIGHT, TITLE OR INTEREST IN OR TO THOSE TAXES, PENALTIES AND
 INTEREST REQUIRED TO BE PAID INTO THE ABOVE REFERENCED CENTRAL  BUSINESS
 DISTRICT TOLLING CAPITAL LOCKBOX.
   §  6-c. The state finance law is amended by adding a new section 99-ff
 to read as follows:
   § 99-FF. NEW YORK CENTRAL BUSINESS DISTRICT TRUST FUND. 1.  ESTABLISH-
 MENT OF THE FUND. THERE IS HEREBY ESTABLISHED IN THE  JOINT  CUSTODY  OF
 THE  STATE  COMPTROLLER  AND  THE COMMISSIONER OF TAXATION AND FINANCE A
 SPECIAL FUND TO BE KNOWN AS THE NEW YORK CENTRAL BUSINESS DISTRICT TRUST
 FUND. MONEYS IN THIS ACCOUNT SHALL BE KEPT SEPARATE AND  NOT  COMMINGLED
 WITH ANY OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER.
   2.  SOURCES OF FUNDS. THE SOURCES OF FUNDS SHALL CONSIST OF ALL MONEYS
 DEPOSITED PURSUANT TO SUBDIVISION (C) OF SECTION ELEVEN  HUNDRED  FORTY-
 EIGHT OF THE TAX LAW. ANY INTEREST RECEIVED BY THE COMPTROLLER ON MONEYS
 ON  DEPOSIT SHALL BE RETAINED AND BECOME PART OF THE FUND, UNLESS OTHER-
 WISE DIRECTED BY LAW.
   3. USES OF FUNDS. FOLLOWING APPROPRIATION BY THE  LEGISLATURE,  MONEYS
 SHALL  BE  AVAILABLE  FOR  DISTRIBUTION TO THE CENTRAL BUSINESS DISTRICT
 TOLLING CAPITAL LOCKBOX ESTABLISHED PURSUANT  TO  SECTION  FIVE  HUNDRED
 FIFTY-THREE-J OF THE PUBLIC AUTHORITIES LAW.
   §  7.  This act shall take effect immediately and shall apply to sales
 made on or after June 1, 2019.
 
                                  PART H

 S. 1509--C                         18                         A. 2009--C

   Section 1. Subparagraph (A) of  paragraph  1  of  subdivision  (b)  of
 section  1105 of the tax law, as amended by section 9 of part S of chap-
 ter 85 of the laws of 2002, is amended to read as follows:
   (A)  gas,  electricity,  refrigeration  and  steam, and gas, electric,
 refrigeration and steam service of whatever nature, INCLUDING THE TRANS-
 PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY,  EVEN  IF
 SOLD SEPARATELY;
   § 2. Section 1105-C of the tax law is REPEALED.
   §  3.  Subparagraph  (xi) of paragraph 4 of subdivision (a) of section
 1210 of the tax law is REPEALED.
   § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis-
 trative code of the city of New York is REPEALED.
   § 5. This act shall take effect June 1, 2019, and shall apply to sales
 made and services rendered on and after that date, whether or not  under
 a prior contract.
 
                                  PART I
 
   Section 1. Subdivision 3 of section 1204 of the real property tax law,
 as  added  by  chapter  115  of  the laws of 2018, is amended to read as
 follows:
   3. Where the tentative equalization rate is not within plus  or  minus
 five  [percentage points] PERCENT of the locally stated level of assess-
 ment, the assessor shall provide notice in writing to the local  govern-
 ing body of any affected town, city, village, county and school district
 of the difference between the locally stated level of assessment and the
 tentative  equalization rate.  Such notice shall be made within ten days
 of the receipt of the tentative equalization rate, or within ten days of
 the filing of the tentative assessment roll,  whichever  is  later,  and
 shall provide the difference in the indicated total full value estimates
 of the locally stated level of assessment and the tentative equalization
 rate  for the taxable property within each affected town, city, village,
 county and school district, where applicable.
   § 2. The real property tax law is amended by adding a new section 1211
 to read as follows:
   § 1211. CONFIRMATION BY COMMISSIONER OF THE LOCALLY  STATED  LEVEL  OF
 ASSESSMENT.  NOTWITHSTANDING  THE  FOREGOING  PROVISIONS  OF THIS TITLE,
 BEFORE THE COMMISSIONER DETERMINES A TENTATIVE EQUALIZATION RATE  FOR  A
 CITY,  TOWN  OR  VILLAGE,  HE  OR  SHE SHALL EXAMINE THE ACCURACY OF THE
 LOCALLY STATED LEVEL OF ASSESSMENT APPEARING ON THE TENTATIVE ASSESSMENT
 ROLL. IF THE COMMISSIONER CONFIRMS THE LOCALLY STATED LEVEL  OF  ASSESS-
 MENT,  THEN AS SOON THEREAFTER AS IS PRACTICABLE, HE OR SHE SHALL ESTAB-
 LISH AND CERTIFY SUCH LOCALLY STATED LEVEL OF ASSESSMENT  AS  THE  FINAL
 EQUALIZATION  RATE FOR SUCH CITY, TOWN OR VILLAGE IN THE MANNER PROVIDED
 BY SECTIONS TWELVE HUNDRED TEN AND TWELVE HUNDRED TWELVE OF THIS  TITLE.
 THE  PROVISIONS  OF SECTIONS TWELVE HUNDRED FOUR, TWELVE HUNDRED SIX AND
 TWELVE HUNDRED EIGHT OF THIS TITLE SHALL NOT APPLY IN SUCH CASES, UNLESS
 THE COMMISSIONER FINDS THAT THE FINAL ASSESSMENT ROLL DIFFERS  FROM  THE
 TENTATIVE  ASSESSMENT  ROLL TO AN EXTENT THAT RENDERS THE LOCALLY STATED
 LEVEL OF ASSESSMENT INACCURATE, AND RESCINDS THE FINAL EQUALIZATION RATE
 ON THAT BASIS.
   § 3. Paragraph (d) of subdivision 1 of section 1314 of the real  prop-
 erty  tax law, as amended by chapter 158 of the laws of 2002, is amended
 to read as follows:
   (d) (I) Such district superintendent shall also determine what propor-
 tion of any tax to be levied in such school district for school purposes

 S. 1509--C                         19                         A. 2009--C
 
 during the current school year shall be levied upon each part of a  city
 or town included in such school district by dividing the sum of the full
 valuation  of  real property in such part of a city or town by the total
 of  all  such  full valuations of real property in such school district.
 PROVIDED, HOWEVER, THAT PRIOR TO THE LEVY OF TAXES, THE  GOVERNING  BODY
 OF THE SCHOOL DISTRICT MAY ADOPT A RESOLUTION DIRECTING SUCH PROPORTIONS
 TO  BE  BASED  UPON  THE AVERAGE FULL VALUATION OF REAL PROPERTY IN EACH
 SUCH CITY OR TOWN OVER EITHER A THREE-YEAR  PERIOD,  CONSISTING  OF  THE
 CURRENT  SCHOOL YEAR AND THE TWO PRIOR SCHOOL YEARS, OR OVER A FIVE-YEAR
 PERIOD, CONSISTING OF THE CURRENT SCHOOL YEAR AND THE FOUR PRIOR  SCHOOL
 YEARS.  ONCE  SUCH  A  RESOLUTION  HAS BEEN ADOPTED, THE PROPORTIONS FOR
 ENSUING SCHOOL YEARS SHALL CONTINUE TO BE BASED UPON  THE  AVERAGE  FULL
 VALUATION  OF  REAL PROPERTY IN EACH SUCH CITY OR TOWN OVER THE SELECTED
 PERIOD, UNLESS THE RESOLUTION PROVIDES OTHERWISE OR IS REPEALED.
   (II) Such proportions shall be expressed  in  the  nearest  exact  ten
 thousandths  and  the  school  authorities of such school district shall
 levy such a proportion of any tax to be raised in  the  school  district
 during the current school year upon each part of a city or town included
 in  such  school  district as shall have been determined by the district
 superintendent. A new proportion shall be  determined  for  each  school
 year  thereafter  by  the district superintendent in accordance with the
 provisions of this section by the use of the latest  state  equalization
 rates.  In  any such school district that is not within the jurisdiction
 of a district superintendent of schools, the duties which  would  other-
 wise be performed by the district superintendent under the provisions of
 this  section,  shall  be  performed  by  the school authorities of such
 district.
   § 4. This act shall take effect immediately.

                                  PART J
 
   Section 1. This Part enacts into law major components  of  legislation
 relating to the improvement of the administration of real property taxa-
 tion  in accordance with the real property tax law and other laws relat-
 ing thereto. Each component is wholly contained within a Subpart identi-
 fied as Subparts A through F. The effective  date  for  each  particular
 provision contained within such Subpart is set forth in the last section
 of  such  Subpart.    Any  provision  in  any section contained within a
 Subpart, including the effective date of  the  Subpart,  which  makes  a
 reference  to a section "of this act", when used in connection with that
 particular component, shall be deemed to mean and refer  to  the  corre-
 sponding  section of the Subpart in which it is found.  Section three of
 this Part sets forth the general effective date of this Part.
 
                                 SUBPART A
 
                           Intentionally Omitted
 
                                 SUBPART B
 
   Section 1. Paragraph (b) of subdivision 1 of section 523 of  the  real
 property  tax  law,  as  amended  by chapter 223 of the laws of 1987, is
 amended to read as follows:
   (b) The board of assessment review shall  consist  of  not  less  than
 three  nor  more  than five members appointed by the legislative body of
 the local government or village OR AS PROVIDED BY  SUBDIVISION  FIVE  OF

 S. 1509--C                         20                         A. 2009--C
 
 SECTION  FIFTEEN  HUNDRED  THIRTY-SEVEN  OF THIS CHAPTER, IF APPLICABLE.
 Members shall have a knowledge of property values in the  local  govern-
 ment or village. Neither the assessor nor any member of his or her staff
 may  be  appointed to the board of assessment review. A majority of such
 board shall consist of members who are not officers or employees of  the
 local government or village.
   §  2.  Subdivision  1 of section 1537 of the real property tax law, as
 added by chapter 512 of the laws of 1993, is amended and a new  subdivi-
 sion 5 is added to read as follows:
   1.  (a)  An  assessing unit and a county shall have the power to enter
 into, amend, cancel and terminate an agreement for  appraisal  services,
 exemption  services,  [or]  assessment  services,  OR  ASSESSMENT REVIEW
 SERVICES, in the manner provided by  this  section.  Such  an  agreement
 shall  be considered an agreement for the provision of a "joint service"
 for purposes of article five-G of the general  municipal  law,  notwith-
 standing  the  fact  that the county would not have the power to perform
 such services in the absence of such an agreement.
   (b) Any such agreement shall be approved by both  the  assessing  unit
 and  the  county,  by  a  majority  vote  of the voting strength of each
 governing body.
   (c) In the case of an assessing  unit,  no  such  agreement  shall  be
 submitted  to the governing body for approval unless at least forty-five
 days prior to such submission, the governing body shall have  adopted  a
 resolution,  subject to a permissive referendum, authorizing the assess-
 ing unit to negotiate such  an  agreement  with  the  county;  provided,
 however,  that  such  prior  authorization  shall not be required for an
 agreement to amend, cancel or terminate an existing  agreement  pursuant
 to this section.
   5.  AN AGREEMENT BETWEEN AN ASSESSING UNIT AND A COUNTY FOR ASSESSMENT
 REVIEW SERVICES SHALL PROVIDE FOR THE MEMBERS OF THE BOARD OF ASSESSMENT
 REVIEW OF THE ASSESSING UNIT TO BE APPOINTED BY THE LEGISLATIVE BODY  OF
 THE  COUNTY  UPON  THE RECOMMENDATION OF THE COUNTY DIRECTOR OF THE REAL
 PROPERTY TAX SERVICES. EACH MEMBER SO APPOINTED SHALL BE A  RESIDENT  OF
 THE  COUNTY  BUT NEED NOT BE A RESIDENT OF THE ASSESSING UNIT. THE BOARD
 OF ASSESSMENT REVIEW AS SO  CONSTITUTED  SHALL  HAVE  THE  AUTHORITY  TO
 RECEIVE,  REVIEW  AND  RESOLVE  PETITIONS FOR ASSESSMENT REVIEW FILED IN
 SUCH ASSESSING UNIT, AND FOR THE CORRECTIONS OF ERRORS THEREIN,  TO  THE
 FULL EXTENT SET FORTH IN ARTICLE FIVE OF THIS CHAPTER.
   §  3.  Subdivision  1 of section 1408 of the real property tax law, as
 amended by chapter 473 of the laws  of  1984,  is  amended  to  read  as
 follows:
   1.  At the time and place and during the hours specified in the notice
 given pursuant to section fourteen hundred  six  of  this  chapter,  the
 board  of  review  shall meet to hear complaints relating to assessments
 brought before it. The board of trustees and assessors, or  a  committee
 of such board constituting at least a majority thereof and the assessors
 or  a  board  of  assessment review constituted pursuant to section five
 hundred twenty-three of this chapter, OR AS PROVIDED BY SUBDIVISION FIVE
 OF SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER, IF  APPLICABLE,
 shall constitute the board of review.
   § 4. This act shall take effect immediately.

                                 SUBPART C
 
   Section  1. Subdivision 4 of section 318 of the real property tax law,
 as amended by chapter 527 of the laws of 1997 and as further amended  by

 S. 1509--C                         21                         A. 2009--C
 
 subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
 2010, is amended to read as follows:
   4.  Notwithstanding  the  provisions  of this subdivision or any other
 law, the travel and other actual and necessary expenses incurred  by  an
 appointed  or  elected assessor, or by A PERSON APPOINTED ASSESSOR FOR A
 FORTHCOMING TERM, OR BY an assessor-elect prior to the  commencement  of
 his  OR  HER  term,  in satisfactorily completing courses of training as
 required by this title or as approved  by  the  commissioner,  including
 continuing  education  courses  prescribed by the commissioner which are
 satisfactorily completed by any  elected  assessor,  shall  be  a  state
 charge upon audit by the comptroller. Travel and other actual and neces-
 sary expenses incurred by an acting assessor who has been exercising the
 powers  and  duties of the assessor for a period of at least six months,
 in attending training courses no earlier than twelve months prior to the
 date when courses of training and education are required, shall also  be
 a  state  charge  upon audit by the comptroller.  Candidates for certif-
 ication as eligible for the position of assessor, other  than  assessors
 or  assessors-elect, shall be charged for the cost of training materials
 and shall be responsible  for  all  other  costs  incurred  by  them  in
 connection with such training.  NOTWITHSTANDING THE FOREGOING PROVISIONS
 OF  THIS SUBDIVISION, IF THE PROVIDER OF A TRAINING COURSE HAS ASKED THE
 COMMISSIONER TO APPROVE THE COURSE FOR CREDIT ONLY,  SO  THAT  ATTENDEES
 WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT
 WITHOUT  HAVING  THEIR EXPENSES REIMBURSED BY THE STATE, AND THE COMMIS-
 SIONER HAS AGREED TO DO SO, THE TRAVEL AND OTHER  ACTUAL  AND  NECESSARY
 EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE.
   § 2. Paragraph f of subdivision 3 of section 1530 of the real property
 tax  law,  as  amended by chapter 361 of the laws of 1986 and as further
 amended by subdivision (b) of section 1 of part W of chapter 56  of  the
 laws of 2010, is amended to read as follows:
   f.   Expenses  in  attending  training  courses.  Notwithstanding  the
 provisions of any other law, the travel and other actual  and  necessary
 expenses  incurred  by  a  director or a person appointed director for a
 forthcoming term in attending courses of training as  required  by  this
 subdivision  or  as approved by the commissioner shall be a state charge
 upon audit by the comptroller.  NOTWITHSTANDING THE FOREGOING PROVISIONS
 OF THIS PARAGRAPH, IF THE PROVIDER OF A TRAINING COURSE  HAS  ASKED  THE
 COMMISSIONER  TO  APPROVE  THE COURSE FOR CREDIT ONLY, SO THAT ATTENDEES
 WHO SUCCESSFULLY COMPLETE THE COURSE WOULD BE ENTITLED TO RECEIVE CREDIT
 WITHOUT HAVING THEIR EXPENSES REIMBURSED BY THE STATE, AND  THE  COMMIS-
 SIONER  HAS  AGREED  TO DO SO, THE TRAVEL AND OTHER ACTUAL AND NECESSARY
 EXPENSES INCURRED BY SUCH ATTENDEES SHALL NOT BE A STATE CHARGE.
   § 3. This act shall take effect immediately.
 
                                 SUBPART D
 
   Section 1. Section 104 of the real  property  tax  law,  as  added  by
 section  1  of  part  U of chapter 61 of the laws of 2011, is amended to
 read as follows:
   § 104. Electronic real property tax administration. 1. Notwithstanding
 any provision of law to the contrary, the commissioner is hereby author-
 ized to establish standards for electronic real  property  tax  adminis-
 tration (E-RPT). Such standards shall set forth the terms and conditions
 under which the various tasks associated with real property tax adminis-
 tration  may  be  executed  electronically, dispensing with the need for
 paper documents. Such tasks shall include ANY OR ALL OF THE FOLLOWING:

 S. 1509--C                         22                         A. 2009--C
 
   (a) The filing of exemption applications;
   (b) The filing of petitions for administrative review of assessments;
   (c) The filing of petitions for judicial review of assessments;
   (d)  The  filing  of  applications  for  administrative corrections of
 errors;
   (e) The issuance of statements of taxes;
   (f) The payment of taxes, subject to the provisions of  sections  five
 and five-b of the general municipal law;
   (g) The provision of receipts for the payment of taxes;
   (h)  The  issuance  of  taxpayer  notices  required  by law, including
 sections five hundred eight, five hundred ten, five hundred ten-a,  five
 hundred  eleven,  five  hundred twenty-five and five hundred fifty-one-a
 through five hundred fifty-six-b of this chapter; and
   (i) The furnishing of notices  and  certificates  under  this  chapter
 relating  to  state  equalization  rates, residential assessment ratios,
 special franchise assessments, railroad ceilings, taxable  state  lands,
 advisory  appraisals,  and  the  certification  of  assessors and county
 directors or real property tax services, SUBJECT TO  THE  PROVISIONS  OF
 SUBDIVISION FIVE OF THIS SECTION.
   2.  Such  standards  shall  be developed after consultation with local
 government officials, the office of court administration IN THE CASE  OF
 STANDARDS  RELATING TO PETITIONS FOR JUDICIAL REVIEW OF ASSESSMENTS, and
 the office of the state comptroller IN THE CASE OF STANDARDS RELATING TO
 PAYMENTS OR TAXES AND THE ISSUANCE OF RECEIPTS THEREFOR.
   3. (a) Taxpayers shall not be required to accept  notices,  statements
 of  taxes,  receipts  for the payment of taxes, or other documents elec-
 tronically unless they have  so  elected.  Taxpayers  who  have  not  so
 elected  shall  be  sent  such  communications  in  the manner otherwise
 provided by law.
   (b) [Assessors and other municipal officials shall not be required  to
 accept  and  respond  to  communications from the commissioner electron-
 ically.
   (c)] The governing board of any municipal corporation  may,  by  local
 law,  ordinance or resolution, determine that it is in the public inter-
 est for such municipal corporation to provide electronic  real  property
 tax administration. Upon adoption of such local law, ordinance or resol-
 ution,  such municipal corporation shall comply with standards set forth
 by the commissioner.
   [(d)] (C) The standards prescribed by  the  commissioner  pursuant  to
 this section RELATING TO COMMUNICATIONS WITH TAXPAYERS shall provide for
 the  collection  of  electronic  contact  information,  such  as  e-mail
 addresses and/or social  network  usernames,  from  taxpayers  who  have
 elected  to  receive  electronic  communications  in accordance with the
 provisions of this section. Such information shall be exempt from public
 disclosure in accordance with section eighty-nine of the public officers
 law.
   4. When a document has been transmitted electronically  in  accordance
 with  the  provisions  of  this section and the standards adopted by the
 commissioner hereunder, it shall be deemed  to  satisfy  the  applicable
 legal  requirements  to the same extent as if it had been mailed via the
 United States postal service.
   5. (A) ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY,  WHENEVER  THE
 COMMISSIONER  IS OBLIGED BY LAW TO MAIL A NOTICE OF THE DETERMINATION OF
 A TENTATIVE STATE EQUALIZATION RATE, TENTATIVE SPECIAL FRANCHISE ASSESS-
 MENT, TENTATIVE ASSESSMENT CEILING OR OTHER TENTATIVE  DETERMINATION  OF
 THE  COMMISSIONER  THAT IS SUBJECT TO ADMINISTRATIVE REVIEW, THE COMMIS-

 S. 1509--C                         23                         A. 2009--C
 
 SIONER SHALL BE AUTHORIZED TO FURNISH THE REQUIRED NOTICE BY E-MAIL,  OR
 BY  CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, OR BOTH, AT HIS
 OR HER DISCRETION.  WHEN PROVIDING NOTICE OF A  TENTATIVE  DETERMINATION
 BY CAUSING IT TO BE POSTED ON THE DEPARTMENT'S WEBSITE, THE COMMISSIONER
 ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO
 INFORM  THEM  THAT THE NOTICE OF TENTATIVE DETERMINATION HAS BEEN POSTED
 ON THE WEBSITE. SUCH NOTICE OF  TENTATIVE  DETERMINATION  SHALL  NOT  BE
 DEEMED  COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT.  NOTWITHSTANDING ANY
 PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER SHALL NOT BE REQUIRED
 TO FURNISH SUCH NOTICES BY POSTAL MAIL, EXCEPT AS PROVIDED BY PARAGRAPHS
 (D) AND (E) OF THIS SUBDIVISION.
   (B) WHEN PROVIDING NOTICE OF A TENTATIVE DETERMINATION  BY  E-MAIL  OR
 POSTING  PURSUANT TO THIS SUBDIVISION, THE COMMISSIONER SHALL SPECIFY AN
 E-MAIL ADDRESS TO WHICH COMPLAINTS  REGARDING  SUCH  TENTATIVE  DETERMI-
 NATION  MAY  BE  SENT.  A  COMPLAINT THAT IS SENT TO THE COMMISSIONER BY
 E-MAIL TO THE SPECIFIED E-MAIL ADDRESS BY THE DATE PRESCRIBED BY LAW FOR
 THE MAILING OF SUCH COMPLAINTS SHALL BE DEEMED VALID TO THE SAME  EXTENT
 AS IF IT HAD BEEN SENT BY POSTAL MAIL.
   (C) WHEN A FINAL DETERMINATION IS MADE IN SUCH A MATTER, NOTICE OF THE
 FINAL  DETERMINATION  AND  ANY  CERTIFICATE  RELATING  THERETO  SHALL BE
 FURNISHED BY E-MAIL OR BY A WEBSITE POSTING, OR BOTH AT THE  COMMISSION-
 ER'S  DISCRETION,  AND  NEED  NOT  BE PROVIDED BY POSTAL MAIL, EXCEPT AS
 PROVIDED BY PARAGRAPHS (D) AND (E) OF THIS SUBDIVISION.  WHEN  PROVIDING
 NOTICE  OF  A  FINAL  DETERMINATION BY WEBSITE POSTING, THE COMMISSIONER
 ALSO SHALL E-MAIL THE PARTIES REQUIRED BY LAW TO RECEIVE SUCH NOTICE, TO
 INFORM THEM THAT THE NOTICE OF FINAL DETERMINATION HAS  BEEN  POSTED  ON
 THE  WEBSITE.  SUCH  NOTICE  OF  FINAL DETERMINATION SHALL NOT BE DEEMED
 COMPLETE UNLESS SUCH EMAILS HAVE BEEN SENT.
   (D) IF AN ASSESSOR HAS ADVISED THE COMMISSIONER IN WRITING THAT HE  OR
 SHE  PREFERS  TO  RECEIVE  THE  NOTICES DESCRIBED IN THIS SUBDIVISION BY
 POSTAL MAIL, THE COMMISSIONER SHALL THEREAFTER SEND SUCH NOTICES TO THAT
 ASSESSOR BY POSTAL MAIL, AND NEED NOT SEND SUCH NOTICES TO THAT ASSESSOR
 BY E-MAIL. THE COMMISSIONER SHALL PRESCRIBE A FORM  THAT  ASSESSORS  MAY
 USE TO ADVISE THE COMMISSIONER OF THEIR PREFERENCE FOR POSTAL MAIL.
   (E)  IF  THE  COMMISSIONER  LEARNS  THAT  AN E-MAIL ADDRESS TO WHICH A
 NOTICE HAS BEEN SENT PURSUANT TO THIS SUBDIVISION IS NOT VALID, AND  THE
 COMMISSIONER  CANNOT  FIND  A  VALID  E-MAIL ADDRESS FOR THAT PARTY, THE
 COMMISSIONER SHALL RESEND THE NOTICE TO THE PARTY BY POSTAL MAIL. IF THE
 COMMISSIONER DOES NOT HAVE A VALID E-MAIL ADDRESS FOR THE PARTY  AT  THE
 TIME THE NOTICE IS INITIALLY REQUIRED TO BE SENT, THE COMMISSIONER SHALL
 SEND THE NOTICE TO THAT PARTY BY POSTAL MAIL.
   (F)  ON  OR  BEFORE  NOVEMBER  THIRTIETH,  TWO  THOUSAND NINETEEN, THE
 COMMISSIONER SHALL SEND A NOTICE BY POSTAL MAIL TO ASSESSORS,  TO  CHIEF
 EXECUTIVE  OFFICERS  OF  ASSESSING UNITS, AND TO OWNERS OF SPECIAL FRAN-
 CHISE PROPERTY AND RAILROAD PROPERTY, INFORMING THEM OF  THE  PROVISIONS
 OF  THIS  SECTION.    THE NOTICE TO BE SENT TO ASSESSORS SHALL INCLUDE A
 COPY OF THE FORM PRESCRIBED PURSUANT TO PARAGRAPH (D) OF  THIS  SUBDIVI-
 SION.
   (G)  AS  USED  IN  THIS SUBDIVISION, THE TERM "POSTAL MAIL" SHALL MEAN
 MAIL THAT IS PHYSICALLY DELIVERED TO THE ADDRESSEE BY THE UNITED  STATES
 POSTAL SERVICE.
   § 2. This act shall take effect immediately.
 
                                 SUBPART E

 S. 1509--C                         24                         A. 2009--C
 
   Section  1. Subdivision 4 of section 302 of the real property tax law,
 as amended by chapter 348 of the laws of 2007, is  amended  to  read  as
 follows:
   4.  The  taxable  status of a special franchise shall be determined on
 the basis of its value and its ownership as of the first day  of  [July]
 JANUARY  of  the year preceding the year in which the assessment roll on
 which such property is to be assessed is  completed  and  filed  in  the
 office  of  the  city  or town clerk, except that taxable status of such
 properties shall be determined on the basis of ownership as of the first
 day of [July] JANUARY of the second year preceding the date required  by
 law  for  the  filing  of  the final assessment roll for purposes of all
 village assessment rolls.
   § 2. Subdivision 2 of section 606 of the real  property  tax  law,  as
 amended  by  chapter  743  of the laws of 2005 and as further amended by
 subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
 2010, is amended to read as follows:
   2. In any assessing unit which has completed a revaluation since nine-
 teen  hundred  fifty-three  or  which does not contain property that was
 assessed in nineteen hundred fifty-three, the commissioner shall  deter-
 mine  the full value of such special franchise as of the [valuation date
 of the assessing unit] TAXABLE STATUS DATE SPECIFIED BY SUBDIVISION FOUR
 OF SECTION THREE HUNDRED TWO OF THIS CHAPTER. Such full value  shall  be
 determined  by  the  commissioner  for  purposes of sections six hundred
 eight, six hundred fourteen and six hundred  sixteen  of  this  article.
 These  full  values shall be entered on the assessment roll at the level
 of assessment, which shall  be  the  uniform  percentage  of  value,  as
 required  by  section five hundred two of this chapter, appearing on the
 tentative assessment roll upon which the assessment is entered. Whenever
 a final state equalization rate, or, in the case of a special  assessing
 unit, a class equalization rate, is established that is different from a
 level of assessment applied pursuant to this paragraph, any public offi-
 cial  having  custody  of  that assessment roll is hereby authorized and
 directed to recompute these assessments  to  reflect  that  equalization
 rate,  provided  such  final  rate is established by the commissioner at
 least ten days prior to the date for levy of taxes against those assess-
 ments.
   § 3. This act shall take effect January 1, 2020.
 
                                 SUBPART F
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 575-a to read as follows:
   §  575-A. ELECTRIC GENERATING FACILITY ANNUAL REPORTS. 1. EVERY CORPO-
 RATION, COMPANY, ASSOCIATION, JOINT STOCK ASSOCIATION,  PARTNERSHIP  AND
 PERSON,  THEIR  LESSEES,  TRUSTEES  OR  RECEIVERS APPOINTED BY ANY COURT
 WHATSOEVER, OWNING, OPERATING OR MANAGING ANY ELECTRIC GENERATING FACIL-
 ITY IN THE STATE SHALL ANNUALLY FILE WITH  THE  COMMISSIONER,  BY  APRIL
 THIRTIETH, A REPORT SHOWING THE INVENTORY, REVENUE, AND EXPENSES ASSOCI-
 ATED  THEREWITH FOR THE MOST RECENT FISCAL YEAR. SUCH REPORT SHALL BE IN
 THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER.
   2. WHEN USED IN THIS SECTION,  "ELECTRIC  GENERATING  FACILITY"  SHALL
 MEAN ANY FACILITY THAT GENERATES ELECTRICITY FOR SALE, DIRECTLY OR INDI-
 RECTLY,  TO  THE  PUBLIC,  INCLUDING THE LAND UPON WHICH THE FACILITY IS
 LOCATED, ANY EQUIPMENT USED IN SUCH GENERATION,  AND  EQUIPMENT  LEADING
 FROM  THE FACILITY TO THE INTERCONNECTION WITH THE ELECTRIC TRANSMISSION
 SYSTEM, BUT SHALL NOT INCLUDE:

 S. 1509--C                         25                         A. 2009--C
 
   (A) ANY EQUIPMENT IN THE ELECTRIC TRANSMISSION SYSTEM; AND
   (B)  ANY ELECTRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A RESIDEN-
 TIAL CUSTOMER OF AN ELECTRIC GENERATING  FACILITY,  INCLUDING  THE  LAND
 UPON WHICH THE EQUIPMENT IS LOCATED, WHEN LOCATED AND USED AT HIS OR HER
 RESIDENCE.
   3.  EVERY  ELECTRIC  GENERATING  FACILITY  OWNER, OPERATOR, OR MANAGER
 FAILING TO MAKE THE REPORT REQUIRED BY THIS SECTION, OR FAILING TO  MAKE
 ANY  REPORT REQUIRED BY THE COMMISSIONER PURSUANT TO THIS SECTION WITHIN
 THE TIME SPECIFIED BY IT, SHALL FORFEIT TO THE PEOPLE OF THE  STATE  THE
 SUM  OF  UP TO TEN THOUSAND DOLLARS FOR EVERY SUCH FAILURE AND THE ADDI-
 TIONAL SUM OF UP TO ONE THOUSAND DOLLARS FOR EACH DAY THAT SUCH  FAILURE
 CONTINUES.
   § 2. This act shall take effect January 1, 2020.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or subpart of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or  subpart  thereof  directly involved in the controversy in which such
 judgment shall have been rendered. It  is  hereby  declared  to  be  the
 intent  of the legislature that this act would have been enacted even if
 such invalid provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the applicable effective date of Subparts A through F of this Part shall
 be as specifically set forth in the last section of such Subparts.
 
                                  PART K
 
   Section  1.  Section  3-d  of  the  general municipal law, as added by
 section 2 of part E of chapter 59 of the laws of 2018, is REPEALED.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 12, 2018.
 
                                  PART L

   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:
   § 44. EMPLOYER-PROVIDED CHILD CARE CREDIT.  (A)  GENERAL.  A  TAXPAYER
 SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS
 CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN AMOUNT EQUAL TO
 THE  PORTION OF THE CREDIT THAT IS ALLOWED TO THE TAXPAYER UNDER SECTION
 45F OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE TO  (I)  QUALIFIED
 CHILD  CARE  EXPENDITURES  PAID  OR INCURRED WITH RESPECT TO A QUALIFIED
 CHILD CARE FACILITY WITH A SITUS IN THE STATE,  AND  TO  (II)  QUALIFIED
 CHILD  CARE  RESOURCE  AND  REFERRAL  EXPENDITURES PAID OR INCURRED WITH
 RESPECT TO THE TAXPAYER'S EMPLOYEES WORKING IN  THE  STATE.  THE  CREDIT
 ALLOWABLE  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT EXCEED
 ONE HUNDRED FIFTY THOUSAND DOLLARS. IF THE ENTITY OPERATING  THE  QUALI-
 FIED  CHILD  CARE FACILITY IS A PARTNERSHIP OR A NEW YORK S CORPORATION,
 THEN SUCH CAP SHALL BE APPLIED AT THE ENTITY  LEVEL,  SO  THE  AGGREGATE
 CREDIT  ALLOWED  TO ALL THE PARTNERS OR SHAREHOLDERS OF SUCH ENTITY IN A
 TAXABLE YEAR DOES NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS.
   (B) CREDIT RECAPTURE. IF THERE IS A CESSATION OF OPERATION  OR  CHANGE
 IN  OWNERSHIP,  AS  DEFINED  BY SECTION 45F OF THE INTERNAL REVENUE CODE
 RELATING TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN  THE  STATE,
 THE  TAXPAYER  SHALL ADD BACK THE APPLICABLE RECAPTURE PERCENTAGE OF THE

 S. 1509--C                         26                         A. 2009--C
 
 CREDIT ALLOWED UNDER THIS  SECTION  IN  ACCORDANCE  WITH  THE  RECAPTURE
 PROVISIONS  OF  SECTION 45F OF THE INTERNAL REVENUE CODE, BUT THE RECAP-
 TURE AMOUNT SHALL BE LIMITED TO THE CREDIT ALLOWED UNDER THIS SECTION.
   (C) REPORTING REQUIREMENTS. A TAXPAYER THAT HAS CLAIMED A CREDIT UNDER
 THIS  SECTION  SHALL  NOTIFY THE COMMISSIONER OF ANY CESSATION OF OPERA-
 TION, CHANGE IN OWNERSHIP, OR AGREEMENT TO ASSUME RECAPTURE LIABILITY AS
 SUCH TERMS ARE DEFINED BY SECTION 45F OF THE INTERNAL REVENUE  CODE,  IN
 THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER.
   (D) DEFINITIONS. THE TERMS "QUALIFIED CHILD CARE EXPENDITURES", "QUAL-
 IFIED  CHILD CARE FACILITY", "QUALIFIED CHILD CARE RESOURCE AND REFERRAL
 EXPENDITURE", "CESSATION  OF  OPERATION",  "CHANGE  OF  OWNERSHIP",  AND
 "APPLICABLE  RECAPTURE  PERCENTAGE"  SHALL  HAVE THE SAME MEANINGS AS IN
 SECTION 45F OF THE INTERNAL REVENUE CODE.
   (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53;
   (2) ARTICLE 22: SECTION 606(I), SUBSECTIONS (I) AND (JJJ);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. EMPLOYER-PROVIDED CHILD CARE CREDIT. (A) ALLOWANCE  OF  CREDIT.  A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FORTY-FOUR OF THIS CHAPTER, AGAINST  THE  TAX  IMPOSED  BY  THIS
 ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT  OF  THE
 CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
 TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX  BASED  ON  THE
 FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN
 SUCH TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
 EIGHTY-SIX  OF  THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE PROVISIONS OF
 SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (C)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
 follows:
 (XLIV) EMPLOYER-PROVIDED CHILD       AMOUNT OF CREDIT UNDER SUBDIVISION
 CARE CREDIT (JJJ)                    FIFTY-THREE OF SECTION TWO HUNDRED
                                      TEN-B
   § 4. Section 606 of the tax law is amended by adding a new  subsection
 (jjj) to read as follows:
   (JJJ)  EMPLOYER-PROVIDED CHILD CARE CREDIT. (1) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
 SECTION  FORTY-FOUR  OF  THIS  CHAPTER,  AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
 OR  REFUNDED  IN  ACCORDANCE  WITH THE PROVISIONS OF SECTION SIX HUNDRED
 EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL  BE
 PAID THEREON.

 S. 1509--C                         27                         A. 2009--C
 
   (3)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   §  5.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) EMPLOYER-PROVIDED CHILD CARE CREDIT. (1) ALLOWANCE OF  CREDIT.  A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FORTY-FOUR OF THIS CHAPTER, AGAINST  THE  TAX  IMPOSED  BY  THIS
 ARTICLE.
   (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN  THE  MINIMUM
 FIXED  BY  PARAGRAPH  FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED
 TWO OR SECTION FIFTEEN HUNDRED  TWO-A  OF  THIS  ARTICLE,  WHICHEVER  IS
 APPLICABLE.  HOWEVER,  IF  THE  AMOUNT  OF THE CREDIT ALLOWED UNDER THIS
 SUBDIVISION FOR ANY TAXABLE YEAR REDUCES  THE  TAXPAYER'S  TAX  TO  SUCH
 AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN
 OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
 PROVISIONS   OF   SECTION  ONE  THOUSAND  EIGHTY-SIX  OF  THIS  CHAPTER.
 PROVIDED, HOWEVER, THE PROVISIONS OF  SUBSECTION  (C)  OF  ONE  THOUSAND
 EIGHTY-EIGHT  OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID
 THEREON.
   (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING  RECAPTURE  OF  CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   § 6. This act shall take effect immediately and apply to taxable years
 beginning on or after January 1, 2020.
 
                                  PART M
 
   Section 1. Paragraph 1 of subsection (b) of section 631 of the tax law
 is amended by adding a new subparagraph (D-1) to read as follows:
   (D-1) GAMBLING WINNINGS IN EXCESS OF FIVE THOUSAND DOLLARS FROM WAGER-
 ING TRANSACTIONS WITHIN THE STATE; OR
   §  2.  Paragraph  2 of subsection (b) of section 671 of the tax law is
 amended by adding a new subparagraph (E) to read as follows:
   (E) ANY GAMBLING WINNINGS FROM  A  WAGERING  TRANSACTION  WITHIN  THIS
 STATE,  IF  THE PROCEEDS FROM THE WAGER ARE SUBJECT TO WITHHOLDING UNDER
 SECTION THREE THOUSAND FOUR HUNDRED TWO OF THE INTERNAL REVENUE CODE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019; provided, however that  the
 amendments  to  subsection  (b)  of  section  671 of the tax law made by
 section two of  this  act  shall  not  affect  the  expiration  of  such
 subsection and shall be deemed to expire therewith.
 
                                  PART N
 
   Section  1.  Subdivision (c) of section 42 of the tax law, as added by
 section 1 of part RR of chapter 60 of the laws of 2016,  is  amended  to
 read as follows:
   (c)  For  purposes  of  this [subdivision] SECTION, the term "eligible
 farmer" means a taxpayer whose federal  gross  income  from  farming  AS
 DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER for
 the  taxable year is at least two-thirds of excess federal gross income.
 Excess federal gross income means the amount  of  federal  gross  income
 from  all  sources  for  the  taxable  year in excess of thirty thousand
 dollars. For [the] purposes of this [subdivision] SECTION, payments from
 the state's farmland protection program, administered by the  department

 S. 1509--C                         28                         A. 2009--C
 
 of  agriculture  and  markets, shall be included as federal gross income
 from farming for otherwise eligible farmers.
   §  2. Section 42 of the tax law is amended by adding a new subdivision
 (d-1) to read as follows:
   (D-1) SPECIAL RULES. IF MORE THAN FIFTY PERCENT OF SUCH ELIGIBLE FARM-
 ER'S FEDERAL GROSS INCOME FROM FARMING IS FROM THE SALE OF WINE  FROM  A
 LICENSED  FARM  WINERY  AS  PROVIDED FOR IN ARTICLE SIX OF THE ALCOHOLIC
 BEVERAGE CONTROL LAW, OR FROM THE SALE OF CIDER  FROM  A  LICENSED  FARM
 CIDERY  AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVER-
 AGE CONTROL LAW, THEN AN ELIGIBLE FARM EMPLOYEE OF SUCH ELIGIBLE  FARMER
 SHALL  BE  INCLUDED  FOR  PURPOSES  OF  CALCULATING THE AMOUNT OF CREDIT
 ALLOWED UNDER THIS SECTION  ONLY  IF  SUCH  ELIGIBLE  FARM  EMPLOYEE  IS
 EMPLOYED  BY  SUCH ELIGIBLE FARMER ON QUALIFIED AGRICULTURAL PROPERTY AS
 DEFINED IN PARAGRAPH FOUR OF SUBSECTION (N) OF SECTION SIX  HUNDRED  SIX
 OF THIS CHAPTER.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.
 
                                  PART O
 
   Section  1.  Section  12  of part N of chapter 61 of the laws of 2005,
 amending the tax law relating to certain transactions and related infor-
 mation and relating to the voluntary compliance initiative,  as  amended
 by  section 1 of part M of chapter 60 of the laws of 2016, is amended to
 read as follows:
   § 12. This act shall take effect immediately; provided, however,  that
 (i)  section  one  of  this act shall apply to all disclosure statements
 described in paragraph 1 of subdivision (a) of section  25  of  the  tax
 law, as added by section one of this act, that were required to be filed
 with  the  internal  revenue service at any time with respect to "listed
 transactions" as described in such paragraph 1, and shall apply  to  all
 disclosure  statements  described  in  paragraph 1 of subdivision (a) of
 section 25 of the tax law, as added by section one  of  this  act,  that
 were required to be filed with the internal revenue service with respect
 to  "reportable  transactions"  as  described in such paragraph 1, other
 than "listed transactions", in which a taxpayer participated during  any
 taxable year for which the statute of limitations for assessment has not
 expired  as  of  the date this act shall take effect, and shall apply to
 returns or statements described in such paragraph 1 required to be filed
 by taxpayers (or persons  as  described  in  such  paragraph)  with  the
 commissioner  of taxation and finance on or after the sixtieth day after
 this act shall have become a law; and
   (ii) sections two through four and seven  through  nine  of  this  act
 shall apply to any tax liability for which the statute of limitations on
 assessment  has  not  expired as of the date this act shall take effect;
 and
   (iii) provided, further, that  the  provisions  of  this  act,  except
 section  five  of  this act, shall expire and be deemed repealed July 1,
 [2019] 2024; provided, that, such expiration and repeal shall not affect
 any requirement imposed pursuant to this act.
   § 2. Subsection (aa) of section 685 of the tax law is REPEALED  and  a
 new subsection (aa) is added to read as follows:
   (AA)  TAX  PREPARER  PENALTY.--  (1)  IF A TAX RETURN PREPARER TAKES A
 POSITION ON ANY INCOME TAX RETURN  OR  CREDIT  CLAIM  FORM  THAT  EITHER
 UNDERSTATES  THE  TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND, AND
 THE PREPARER KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT  SAID  POSITION

 S. 1509--C                         29                         A. 2009--C
 
 WAS  NOT  PROPER,  AND SUCH POSITION WAS NOT ADEQUATELY DISCLOSED ON THE
 RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPAR-
 ER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS.
   (2) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN
 OR  CREDIT  CLAIM  FORM  THAT  EITHER  UNDERSTATES  THE TAX LIABILITY OR
 INCREASES THE CLAIM FOR A REFUND  AND  THE  UNDERSTATEMENT  OF  THE  TAX
 LIABILITY  OR  THE  INCREASED  CLAIM FOR REFUND IS DUE TO THE PREPARER'S
 RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH
 PREPARER SHALL PAY A PENALTY OF BETWEEN FIVE HUNDRED AND  FIVE  THOUSAND
 DOLLARS.  THE  AMOUNT  OF THE PENALTY PAYABLE BY ANY PERSON BY REASON OF
 THIS PARAGRAPH SHALL BE REDUCED BY THE AMOUNT OF  THE  PENALTY  PAID  BY
 SUCH PERSON BY REASON OF PARAGRAPH ONE OF THIS SUBSECTION.
   (3)  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT OF TAX
 LIABILITY" MEANS ANY UNDERSTATEMENT  OF  THE  NET  AMOUNT  PAYABLE  WITH
 RESPECT  TO  ANY  TAX IMPOSED UNDER THIS ARTICLE OR ANY OVERSTATEMENT OF
 THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX.
   (4) FOR PURPOSES OF THIS SUBSECTION, THE TERM  "TAX  RETURN  PREPARED"
 SHALL  HAVE  THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION
 (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE.
   (5) THIS SUBSECTION SHALL NOT APPLY IF THE  PENALTY  UNDER  SUBSECTION
 (R)  OF  THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT
 TO SUCH UNDERSTATEMENT.
   § 3. Subsection (u) of section 685 of the tax law is amended by adding
 three new paragraphs (1), (2), and (6) to read as follows:
   (1) FAILURE TO SIGN RETURN OR  CLAIM  FOR  REFUND.  IF  A  TAX  RETURN
 PREPARER  WHO IS REQUIRED PURSUANT TO PARAGRAPH ONE OF SUBSECTION (G) OF
 SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE  TO  SIGN  A  RETURN  OR
 CLAIM  FOR  REFUND FAILS TO COMPLY WITH SUCH REQUIREMENT WITH RESPECT TO
 SUCH RETURN OR CLAIM FOR  REFUND,  THE  TAX  RETURN  PREPARER  SHALL  BE
 SUBJECT  TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH FAILURE
 TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE
 AND NOT DUE TO WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED  UNDER  THIS
 PARAGRAPH  ON  ANY  TAX  RETURN  PREPARER  WITH RESPECT TO RETURNS FILED
 DURING ANY CALENDAR YEAR BY THE TAX RETURN PREPARER MUST NOT EXCEED  TEN
 THOUSAND  DOLLARS.  PROVIDED, HOWEVER, THAT IF A TAX RETURN PREPARER HAS
 BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING  CALENDAR  YEAR  AND
 AGAIN  FAILS TO SIGN HIS OR HER NAME ON ANY RETURN THAT REQUIRES THE TAX
 RETURN PREPARER'S SIGNATURE DURING A SUBSEQUENT CALENDAR YEAR, THEN  THE
 PENALTY  UNDER  THIS  PARAGRAPH  FOR  EACH  FAILURE WILL BE FIVE HUNDRED
 DOLLARS, AND NO ANNUAL CAP WILL APPLY. THIS PARAGRAPH SHALL NOT APPLY IF
 THE PENALTY UNDER PARAGRAPH THREE OF SUBSECTION (G) OF  SECTION  THIRTY-
 TWO  OF  THIS CHAPTER IS IMPOSED ON THE TAX RETURN PREPARER WITH RESPECT
 TO SUCH RETURN OR CLAIM FOR REFUND.
   (2) FAILURE TO FURNISH IDENTIFYING NUMBER. IF A  TAX  RETURN  PREPARER
 FAILS  TO  INCLUDE ANY IDENTIFYING NUMBER REQUIRED TO BE INCLUDED ON ANY
 RETURN OR CLAIM FOR REFUND PURSUANT TO PARAGRAPH TWO OF  SUBSECTION  (G)
 OF  SECTION  SIX  HUNDRED  FIFTY-EIGHT  OF  THIS ARTICLE, THE TAX RETURN
 PREPARER SHALL BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS  FOR  EACH
 SUCH  FAILURE, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE
 CAUSE AND NOT WILLFUL NEGLECT.  THE MAXIMUM PENALTY IMPOSED  UNDER  THIS
 PARAGRAPH  ON  ANY  TAX  RETURN  PREPARER  WITH RESPECT TO RETURNS FILED
 DURING ANY CALENDAR YEAR MUST  NOT  EXCEED  TWO  THOUSAND  FIVE  HUNDRED
 DOLLARS;  PROVIDED,  HOWEVER,  THAT  IF  A  TAX RETURN PREPARER HAS BEEN
 PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING CALENDAR YEAR  AND  AGAIN
 FAILS  TO INCLUDE THE IDENTIFYING NUMBER ON ONE OR MORE RETURNS DURING A
 SUBSEQUENT CALENDAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH

 S. 1509--C                         30                         A. 2009--C
 
 FAILURE WILL BE TWO HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY.
 THIS PARAGRAPH SHALL NOT APPLY IF THE PENALTY UNDER  PARAGRAPH  FOUR  OF
 SUBSECTION  (G)  OF SECTION THIRTY-TWO OF THIS CHAPTER IS IMPOSED ON THE
 TAX RETURN PREPARER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND.
   (6)  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM "TAX RETURN PREPARER"
 SHALL HAVE THE SAME MEANING AS DEFINED IN PARAGRAPH FIVE  OF  SUBSECTION
 (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE.
   §  4.  This act shall take effect immediately; provided, however, that
 the amendments to subsection (u) of section 685 of the tax law  made  by
 section three of this act shall apply to tax documents filed or required
 to be filed for taxable years beginning on or after January 1, 2019.
 
                                  PART P
 
   Section  1.  Clauses  (iii), (iv), (v), (vi) and (vii) of subparagraph
 (B) of paragraph 1 of subsection (a) of section 601 of the tax  law,  as
 added  by  section  1  of  part R of chapter 59 of the laws of 2017, are
 amended to read as follows:
   (iii) For taxable years beginning in two thousand twenty the following
 rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
                                       $27,900
 Over $43,000 but not over $161,550    $2,093 plus 6.09% of excess over
                                       $43,000
 Over $161,550 but not over $323,200   $9,313 plus 6.41% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $19,674 plus 6.85% of excess
 $2,155,350                            $323,200 over
 OVER $2,155,350                       $145,177 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (iv) For taxable  years  beginning  in  two  thousand  twenty-one  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
                                       $27,900
 Over $43,000 but not over $161,550    $2,093 plus 5.97% of excess over
                                       $43,000
 Over $161,550 but not over $323,200   $9,170 plus 6.33% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $19,403 plus 6.85% of excess
 $2,155,350                            over  $323,200
 OVER $2,155,350                       $144,905 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (v) For taxable years beginning in two thousand twenty-two the follow-
 ing rates shall apply:

 S. 1509--C                         31                         A. 2009--C
 
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,202 plus 5.85% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $9,021 plus 6.25% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER $2,155,350 $19,124 plus
                                       6.85% of excess over $323,200
 OVER $2,155,350                       $144,626 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (vi)  For  taxable  years  beginning  in two thousand twenty-three the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,202 plus 5.73% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $8,860 plus 6.17% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $18,834 plus 6.85% of
 $2,155,350                            excess over $323,200
 OVER $2,155,350                       $144,336 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (vii) For taxable years beginning  in  two  thousand  twenty-four  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      4% of the New York taxable income
 Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,202 plus 5.61% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $8,700 plus 6.09% of excess over
                                       $161,550
 Over $323,200 BUT NOT OVER            $18,544 plus 6.85% of
 $2,155,350                            excess over $323,200
 OVER $2,155,350                       $144,047 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   §  2.  Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of
 paragraph 1 of subsection (b) of section 601 of the tax law, as added by
 section 2 of part R of chapter 59 of the laws of 2017,  are  amended  to
 read as follows:
   (iii) For taxable years beginning in two thousand twenty the following
 rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over

 S. 1509--C                         32                         A. 2009--C
 
                                       $17,650
 Over $20,900 but not over $32,200     $901 plus 5.9% of excess over $20,900
 Over $32,200 but not over $107,650    $1,568 plus 6.09% of excess over
                                       $32,200
 Over $107,650 but not over $269,300   $6,162 plus 6.41% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $16,524 plus 6.85% of
 $1,616,450                            excess over $269,300
 OVER $1,616,450                       $108,804 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $32,200     $901 plus 5.9% of excess over
                                       $20,900
 Over $32,200 but not over $107,650    $1,568 plus 5.97% of excess over
                                       $32,200
 Over $107,650 but not over $269,300   $6,072 plus 6.33% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER             $16,304 plus 6.85% of
 $1,616,450                            excess over $269,300
 OVER $1,616,450                       $108,584 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (v) For taxable years beginning in two thousand twenty-two the follow-
 ing rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $107,650    $901 plus 5.85% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,976 plus 6.25% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $16,079 plus 6.85% of excess
 $1,616,450                            over $269,300
 OVER $1,616,450                       $108,359 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (vi) For taxable years beginning  in  two  thousand  twenty-three  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $107,650    $901 plus 5.73% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,872 plus 6.17% of excess over

 S. 1509--C                         33                         A. 2009--C
 
                                       $107,650
 Over $269,300 BUT NOT OVER            $15,845 plus 6.85% of excess
 $1,616,450                            over $269,300
 OVER $1,616,450                       $108,125 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (vii)  For  taxable  years  beginning  in two thousand twenty-four the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      4% of the New York taxable income
 Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                       $12,800
 Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                       $17,650
 Over $20,900 but not over $107,650    $901 plus 5.61% of excess over
                                       $20,900
 Over $107,650 but not over $269,300   $5,768 plus 6.09% of excess over
                                       $107,650
 Over $269,300 BUT NOT OVER            $15,612 plus 6.85% of excess
 $1,616,450                            over $269,300
 OVER $1,616,450                       $107,892 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   § 3. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph  (B)  of
 paragraph 1 of subsection (c) of section 601 of the tax law, as added by
 section  3  of  part  R of chapter 59 of the laws of 2017, is amended to
 read as follows:
   (iii) For taxable years beginning in two thousand twenty the following
 rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
                                       $13,900
 Over $21,400 but not over $80,650     $1,042 plus 6.09% of excess over
                                       $21,400
 Over $80,650 but not over $215,400    $4,650 plus 6.41% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $13,288 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550                       $72,345 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (iv) For taxable  years  beginning  in  two  thousand  twenty-one  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
                                       $13,900
 Over $21,400 but not over $80,650     $1,042 plus 5.97% of excess over
                                       $21,400
 Over $80,650 but not over $215,400    $4,579 plus 6.33% of excess over

 S. 1509--C                         34                         A. 2009--C
 
                                       $80,650
 Over $215,400 BUT NOT OVER            $13,109 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550                       $72,166 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (v) For taxable years beginning in two thousand twenty-two the follow-
 ing rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $80,650     $600 plus 5.85% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,504 plus 6.25% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $12,926 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550                       $71,984 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (vi)  For  taxable  years  beginning  in two thousand twenty-three the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $80,650     $600 plus 5.73% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,424 plus 6.17% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $12,738 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550                       $71,796 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (vii) For taxable years beginning  in  two  thousand  twenty-four  the
 following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       4% of the New York taxable income
 Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                       $11,700
 Over $13,900 but not over $80,650     $600 plus 5.61% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,344 plus 6.09% of excess over
                                       $80,650
 Over $215,400 BUT NOT OVER            $12,550 plus 6.85% of excess
 $1,077,550                            over $215,400
 OVER $1,077,550                       $71,608 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   §  4.  Subparagraph  (D) of paragraph 1 of subsection (d-1) of section
 601 of the tax law, as amended by section 4 of part R of chapter  59  of
 the laws of 2017, is amended to read as follows:

 S. 1509--C                         35                         A. 2009--C
 
   (D)  The tax table benefit is the difference between (i) the amount of
 taxable income set forth in the tax table in paragraph one of subsection
 (a) of this section not subject to the 8.82 percent rate of tax for  the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for  such amount of taxable income set forth in the tax table applicable
 to the taxable year in paragraph one of subsection (a) of  this  section
 less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
 of  this  paragraph.  The  fraction for this subparagraph is computed as
 follows: the numerator is the lesser of fifty thousand  dollars  or  the
 excess  of  New York adjusted gross income for the taxable year over two
 million dollars and the denominator  is  fifty  thousand  dollars.  This
 subparagraph  shall  apply  only  to taxable years beginning on or after
 January first, two thousand twelve and before January first,  two  thou-
 sand [twenty] TWENTY-FIVE.
   §  5.  Subparagraph  (C) of paragraph 2 of subsection (d-1) of section
 601 of the tax law, as amended by section 5 of part R of chapter  59  of
 the laws of 2017, is amended to read as follows:
   (C)  The tax table benefit is the difference between (i) the amount of
 taxable income set forth in the tax table in paragraph one of subsection
 (b) of this section not subject to the 8.82 percent rate of tax for  the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for  such amount of taxable income set forth in the tax table applicable
 to the taxable year in paragraph one of subsection (b) of  this  section
 less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
 this paragraph. The  fraction  for  this  subparagraph  is  computed  as
 follows:  the  numerator  is the lesser of fifty thousand dollars or the
 excess of New York adjusted gross income for the taxable year  over  one
 million five hundred thousand dollars and the denominator is fifty thou-
 sand dollars. This subparagraph shall apply only to taxable years begin-
 ning  on  or after January first, two thousand twelve and before January
 first, two thousand [twenty] TWENTY-FIVE.
   § 6. Subparagraph (C) of paragraph 3 of subsection  (d-1)  of  section
 601  of  the tax law, as amended by section 6 of part R of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (C) The tax table benefit is the difference between (i) the amount  of
 taxable income set forth in the tax table in paragraph one of subsection
 (c)  of this section not subject to the 8.82 percent rate of tax for the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for such amount of taxable income set forth in the tax table  applicable
 to  the  taxable year in paragraph one of subsection (c) of this section
 less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
 this  paragraph.  The  fraction  for  this  subparagraph  is computed as
 follows: the numerator is the lesser of fifty thousand  dollars  or  the
 excess  of  New York adjusted gross income for the taxable year over one
 million dollars and the denominator  is  fifty  thousand  dollars.  This
 subparagraph  shall  apply  only  to taxable years beginning on or after
 January first, two thousand twelve and before January first,  two  thou-
 sand [twenty] TWENTY-FIVE.
   § 7. This act shall take effect immediately.
 
                                  PART Q
 
   Section 1. Subsection (g) of section 615 of the tax law, as amended by
 section  1  of  part  S of chapter 59 of the laws of 2017, is amended to
 read as follows:

 S. 1509--C                         36                         A. 2009--C
 
   (g) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, THE NEW YORK ITEM-
 IZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT  ALLOWED
 UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS MODI-
 FIED  BY PARAGRAPH NINE OF SUBSECTION (C) OF THIS SECTION AND AS LIMITED
 BY  THIS  SUBSECTION.  (1)  With respect to an individual whose New York
 adjusted gross income is over one million dollars and no more  than  ten
 million  dollars,  the  New  York  itemized deduction shall be an amount
 equal to fifty percent of any charitable contribution deduction  allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble  years  beginning  after  two  thousand nine and before two thousand
 [twenty] TWENTY-FIVE. With respect  to  an  individual  whose  New  York
 adjusted gross income is over one million dollars, the New York itemized
 deduction  shall  be  an amount equal to fifty percent of any charitable
 contribution deduction allowed under section one hundred seventy of  the
 internal  revenue  code for taxable years beginning in two thousand nine
 or after two thousand [nineteen] TWENTY-FOUR.
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount equal to  twenty-five  percent  of  any  charitable  contribution
 deduction  allowed  under  section  one  hundred seventy of the internal
 revenue code for taxable years beginning after  two  thousand  nine  and
 ending before two thousand [twenty] TWENTY-FIVE.
   §  2. Subdivision (g) of section 11-1715 of the administrative code of
 the city of New York, as amended by section 2 of part S of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (g) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, THE CITY ITEMIZED
 DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER
 SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS LIMITED  BY
 THIS  SUBDIVISION.  (1)  With  respect  to  an individual whose New York
 adjusted gross income is over one million dollars but no more  than  ten
 million  dollars,  the  New  York  itemized deduction shall be an amount
 equal to fifty percent of any charitable contribution deduction  allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble  years  beginning  after  two  thousand nine and before two thousand
 [twenty] TWENTY-FIVE. With respect  to  an  individual  whose  New  York
 adjusted gross income is over one million dollars, the New York itemized
 deduction  shall  be  an amount equal to fifty percent of any charitable
 contribution deduction allowed under section one hundred seventy of  the
 internal  revenue  code for taxable years beginning in two thousand nine
 or after two thousand [nineteen] TWENTY-FOUR.
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount equal to  twenty-five  percent  of  any  charitable  contribution
 deduction  allowed  under  section  one  hundred seventy of the internal
 revenue code for taxable years beginning after  two  thousand  nine  and
 ending before two thousand [twenty] TWENTY-FIVE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART R
 
   Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax
 law,  as  amended by chapter 315 of the laws of 2017, is amended to read
 as follows:
   (a) General. A taxpayer shall be allowed  a  credit  against  the  tax
 imposed  by  this  article.  Such  credit, to be computed as hereinafter

 S. 1509--C                         37                         A. 2009--C
 
 provided, shall be allowed for bioheating fuel, used for  space  heating
 or  hot  water  production  for  residential  purposes within this state
 purchased before January first, two thousand [twenty] TWENTY-THREE. Such
 credit  shall be $0.01 per percent of biodiesel per gallon of bioheating
 fuel, not to exceed twenty cents per gallon, purchased by such taxpayer.
 Provided, however, that on or after January first, two  thousand  seven-
 teen,  this  credit shall not apply to bioheating fuel that is less than
 six percent biodiesel per gallon of bioheating fuel.
   § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as
 amended by chapter 315 of the laws  of  2017,  is  amended  to  read  as
 follows:
   (1)  A  taxpayer  shall be allowed a credit against the tax imposed by
 this article. Such credit, to be computed as hereinafter provided, shall
 be allowed for bioheating fuel, used for  space  heating  or  hot  water
 production  for  residential purposes within this state and purchased on
 or after July first, two thousand six and before July first,  two  thou-
 sand  seven and on or after January first, two thousand eight and before
 January first, two thousand [twenty] TWENTY-THREE. Such credit shall  be
 $0.01  per  percent  of  biodiesel per gallon of bioheating fuel, not to
 exceed twenty cents per gallon, purchased by  such  taxpayer.  Provided,
 however,  that  on  or after January first, two thousand seventeen, this
 credit shall not apply to bioheating fuel that is less than six  percent
 biodiesel per gallon of bioheating fuel.
   § 3. This act shall take effect immediately.
 
                                  PART S
 
   Section  1.  Subdivision  (e) of section 23 of part U of chapter 61 of
 the laws of 2011, as amended by section 5 of part G of chapter 60 of the
 laws of 2016, is amended to read as follows:
   (e) sections twenty-one and twenty-one-a of this act shall expire  and
 be deemed repealed December 31, [2019] 2024.
   § 2. This act shall take effect immediately.
 
                                  PART T
 
   Section 1. Subdivision 3 of section 77 of the cooperative corporations
 law,  as  amended by chapter 429 of the laws of 1992, is amended to read
 as follows:
   3. Such annual fee shall  be  paid  for  each  calendar  year  on  the
 fifteenth  day  of March next succeeding the close of such calendar year
 BUT SHALL NOT BE PAYABLE  AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWENTY;
 PROVIDED,  HOWEVER,  THAT COOPERATIVE CORPORATIONS DESCRIBED IN SUBDIVI-
 SIONS ONE OR TWO OF THIS SECTION SHALL CONTINUE TO NOT BE SUBJECT TO THE
 FRANCHISE, LICENSE, AND CORPORATION TAXES REFERENCED  IN  SUCH  SUBDIVI-
 SIONS  OR, IN THE CASE OF COOPERATIVE COOPERATIONS DESCRIBED IN SUBDIVI-
 SION TWO OF THIS SECTION, THE  TAX  IMPOSED  UNDER  SECTION  ONE-HUNDRED
 EIGHTY-SIX-A OF THE TAX LAW.
   §  2.  Section 66 of the rural electric cooperative law, as amended by
 chapter 888 of the laws of 1983, is amended to read as follows:
   § 66. License fee in lieu of all  franchise,  excise,  income,  corpo-
 ration  and  sales  and  compensating  use  taxes.  Each cooperative and
 foreign corporation doing business in this state pursuant to this  chap-
 ter shall pay annually, on or before the first day of July, to the state
 tax commission, a fee of ten dollars, but shall be exempt from all other
 franchise,  excise,  income,  corporation and sales and compensating use

 S. 1509--C                         38                         A. 2009--C
 
 taxes whatsoever. The exemption from  the  sales  and  compensating  use
 taxes  provided  by  this  section  shall not apply to the taxes imposed
 pursuant to section eleven hundred seven or eleven hundred eight of  the
 tax  law.  Nothing  contained  in this section shall be deemed to exempt
 such corporations from collecting and paying over sales and compensating
 use taxes on retail sales of tangible  personal  property  and  services
 made  by  such  corporations  to  purchasers  required to pay such taxes
 imposed pursuant to article twenty-eight or authorized pursuant  to  the
 authority  of  article twenty-nine of the tax law. SUCH ANNUAL FEE SHALL
 NOT BE PAYABLE AFTER JANUARY FIRST, TWO THOUSAND TWENTY.
   § 3. This act shall take effect immediately.
 
                                  PART U
 
   Section 1. Paragraph (e) of subdivision 26 of section 210-B of the tax
 law, as amended by section 2 of part RR of chapter 59  of  the  laws  of
 2018, is amended to read as follows:
   (e)  [To]  EXCEPT  IN  THE  CASE OF A QUALIFIED REHABILITATION PROJECT
 UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
 BY THE STATE, THAT IS UNDER THE JURISDICTION OF  THE  OFFICE  OF  PARKS,
 RECREATION  AND  HISTORIC  PRESERVATION,  TO  be eligible for the credit
 allowable under this subdivision, the rehabilitation project shall be in
 whole or in part located within a census tract which  is  identified  as
 being  at or below one hundred percent of the state median family income
 as calculated as of April first of each year using the most recent  five
 year estimate from the American community survey published by the United
 States Census bureau.  If there is a change in the most recent five year
 estimate,  a  census  tract  that  qualified  for eligibility under this
 program before information about the change  was  released  will  remain
 eligible  for  a  credit  under  this  subdivision for an additional two
 calendar years.
   § 2. Paragraph 5 of subsection (oo) of section 606 of the tax law,  as
 amended  by  section  1 of part RR of chapter 59 of the laws of 2018, is
 amended to read as follows:
   (5) [To] EXCEPT IN THE CASE  OF  A  QUALIFIED  REHABILITATION  PROJECT
 UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
 BY  THE  STATE,  THAT  IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS,
 RECREATION AND HISTORIC PRESERVATION, TO  be  eligible  for  the  credit
 allowable  under  this subsection the rehabilitation project shall be in
 whole or in part located within a census tract which  is  identified  as
 being  at or below one hundred percent of the state median family income
 as calculated as of April first of each year using the most recent  five
 year estimate from the American community survey published by the United
 States Census bureau.  If there is a change in the most recent five year
 estimate,  a  census  tract  that  qualified  for eligibility under this
 program before information about the change  was  released  will  remain
 eligible for a credit under this subsection for an additional two calen-
 dar years.
   § 3. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as
 amended  by  section  3 of part RR of chapter 59 of the laws of 2018, is
 amended to read as follows:
   (5) [To] EXCEPT IN THE CASE  OF  A  QUALIFIED  REHABILITATION  PROJECT
 UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
 BY  THE  STATE,  THAT  IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS,
 RECREATION AND HISTORIC PRESERVATION, TO  be  eligible  for  the  credit
 allowable under this subdivision, the rehabilitation project shall be in

 S. 1509--C                         39                         A. 2009--C
 
 whole  or  in  part located within a census tract which is identified as
 being at or below one hundred percent of the state median family  income
 as  calculated as of April first of each year using the most recent five
 year estimate from the American community survey published by the United
 States Census bureau.  If there is a change in the most recent five year
 estimate,  a  census  tract  that  qualified  for eligibility under this
 program before information about the change  was  released  will  remain
 eligible  for  a  credit  under  this  subdivision for an additional two
 calendar years.
   § 3-a. Clause (iv) of subparagraph (A) of paragraph  5  of  subsection
 (pp)  of  section  606  of the tax law, as amended by chapter 239 of the
 laws of 2009, is amended to read as follows:
   (iv) (1) which is in whole or in part a targeted area residence within
 the meaning of section 143(j) of the internal revenue code;  or  (2)  is
 located  within  a census tract which is identified as being at or below
 one hundred percent of the state median family income in the most recent
 federal census; OR (3) WHICH IS LOCATED IN A CITY WITH A  POPULATION  OF
 LESS  THAN ONE MILLION WITH A POVERTY RATE GREATER THAN FIFTEEN PERCENT,
 ROUNDED TO THE NEAREST WHOLE NUMBER, IN THE MOST RECENT FIVE YEAR  ESTI-
 MATE  FROM  THE AMERICAN COMMUNITY SURVEY PUBLISHED BY THE UNITED STATES
 CENSUS BUREAU.
   § 4.  This  act  shall  take  effect  immediately;  provided  however,
 sections  one,  two  and  three of this act shall apply to taxable years
 beginning on and after January 1, 2020 and section three-a of  this  act
 shall apply to taxable years beginning on and after January 1, 2019.
 
                                  PART V

   Section  1.  Subdivision (jj) of section 1115 of the tax law, as added
 by section 1 of part UU of chapter 59 of the laws of 2015, is amended to
 read as follows:
   (jj) Tangible personal property or services  otherwise  taxable  under
 this  article sold to a related person shall not be subject to the taxes
 imposed by section eleven hundred five of this article or the compensat-
 ing use tax imposed under section eleven hundred  ten  of  this  article
 where the purchaser can show that the following conditions have been met
 to  the  extent they are applicable: (1)(i) the vendor and the purchaser
 are referenced as either a "covered company"  as  described  in  section
 243.2(f)  or a "material entity" as described in section 243.2(l) of the
 Code of Federal Regulations in a resolution plan that has been submitted
 to an agency of the United States for the purpose of satisfying subpara-
 graph 1 of paragraph (d) of section one hundred sixty-five of the  Dodd-
 Frank  Wall Street Reform and Consumer Protection Act (the "Act") or any
 successor law, or (ii) the vendor and the purchaser are  separate  legal
 entities  pursuant  to a divestiture directed pursuant to subparagraph 5
 of paragraph (d) of section one hundred sixty-five of such  act  or  any
 successor law; (2) the sale would not have occurred between such related
 entities were it not for such resolution plan or divestiture; and (3) in
 acquiring  such  property  or  services,  the  vendor  did  not claim an
 exemption from the tax imposed by this state or another state  based  on
 the  vendor's  intent  to  resell such services or property. A person is
 related to another person for purposes of this subdivision if the person
 bears a relationship to such person described  in  section  two  hundred
 sixty-seven of the internal revenue code. The exemption provided by this
 subdivision  shall  not  apply to sales made, services rendered, or uses
 occurring after June  thirtieth,  two  thousand  [nineteen]  TWENTY-ONE,

 S. 1509--C                         40                         A. 2009--C
 
 except  with respect to sales made, services rendered, or uses occurring
 pursuant to binding contracts entered into on or before such  date;  but
 in no case shall such exemption apply after June thirtieth, two thousand
 twenty-four.
   § 2. This act shall take effect immediately.
 
                                  PART W
 
   Section  1.  The mental hygiene law is amended by adding a new section
 32.38 to read as follows:
 § 32.38 THE RECOVERY TAX CREDIT PROGRAM.
   (A) AUTHORIZATION. THE COMMISSIONER IS AUTHORIZED TO AND SHALL  ESTAB-
 LISH  AND  ADMINISTER  THE  RECOVERY  TAX  CREDIT PROGRAM TO PROVIDE TAX
 INCENTIVES TO CERTIFIED EMPLOYERS FOR EMPLOYING ELIGIBLE INDIVIDUALS  IN
 RECOVERY  FROM A SUBSTANCE USE DISORDER IN PART-TIME AND FULL-TIME POSI-
 TIONS IN THE STATE. THE COMMISSIONER IS AUTHORIZED TO ALLOCATE UP TO TWO
 MILLION DOLLARS OF TAX CREDITS ANNUALLY  FOR  THE  RECOVERY  TAX  CREDIT
 PROGRAM BEGINNING IN THE YEAR TWO THOUSAND TWENTY.
   (B)  DEFINITIONS.  1.  THE TERM "CERTIFIED EMPLOYER" MEANS AN EMPLOYER
 THAT HAS RECEIVED A CERTIFICATE OF  TAX  CREDIT  FROM  THE  COMMISSIONER
 AFTER THE COMMISSIONER HAS DETERMINED THAT THE EMPLOYER:
   (I)  PROVIDES  A  RECOVERY  SUPPORTIVE ENVIRONMENT FOR THEIR EMPLOYEES
 EVIDENCED BY A FORMAL WORKING RELATIONSHIP  WITH  A  LOCAL  RECOVERY  OR
 TREATMENT  PROVIDER  CERTIFIED  BY  THE  OFFICE  TO  PROVIDE SUPPORT FOR
 EMPLOYERS INCLUDING ANY NECESSARY ASSISTANCE IN THE  HIRING  PROCESS  OF
 ELIGIBLE  INDIVIDUALS  IN  RECOVERY  FROM  A  SUBSTANCE USE DISORDER AND
 TRAINING FOR EMPLOYERS OR SUPERVISORS; AND
   (II) FULFILLS THE ELIGIBILITY CRITERIA SET FORTH IN THIS  SECTION  AND
 BY  THE  COMMISSIONER  TO PARTICIPATE IN THE RECOVERY TAX CREDIT PROGRAM
 ESTABLISHED IN THIS SECTION.
   2. THE TERM "ELIGIBLE INDIVIDUAL" MEANS AN INDIVIDUAL WITH A SUBSTANCE
 USE DISORDER AS THAT TERM IS DEFINED IN SECTION 1.03 OF THIS CHAPTER WHO
 IS IN A STATE OF WELLNESS WHERE THERE IS AN ABATEMENT OF SIGNS AND SYMP-
 TOMS THAT CHARACTERIZE ACTIVE ADDICTION  AND  HAS  DEMONSTRATED  TO  THE
 QUALIFIED EMPLOYER'S SATISFACTION, PURSUANT TO GUIDELINES ESTABLISHED BY
 THE  OFFICE,  THAT  HE  OR SHE HAS COMPLETED A COURSE OF TREATMENT OR IS
 CURRENTLY IN RECEIPT OF TREATMENT FOR SUCH SUBSTANCE USE  DISORDER.    A
 RELAPSE IN AN INDIVIDUAL'S STATE OF WELLNESS SHALL NOT MAKE THE INDIVID-
 UAL  INELIGIBLE, SO LONG AS SUCH INDIVIDUAL SHOWS A CONTINUED COMMITMENT
 TO RECOVERY THAT ALIGNS WITH AN INDIVIDUAL'S  RELAPSE  PREVENTION  PLAN,
 DISCHARGE PLAN, AND/OR RECOVERY PLAN.
   (C) APPLICATION AND APPROVAL PROCESS. 1. TO PARTICIPATE IN THE PROGRAM
 ESTABLISHED  BY  THIS SECTION, AN EMPLOYER MUST, IN A FORM PRESCRIBED BY
 THE COMMISSIONER, APPLY ANNUALLY TO THE OFFICE BY JANUARY  FIFTEENTH  TO
 CLAIM CREDIT BASED ON ELIGIBLE INDIVIDUALS EMPLOYED DURING THE PRECEDING
 CALENDAR YEAR. AS PART OF SUCH APPLICATION, AN EMPLOYER MUST:
   (I) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
 TAX  INFORMATION  WITH  THE  OFFICE  OF  ALCOHOLISM  AND SUBSTANCE ABUSE
 SERVICES. HOWEVER, ANY INFORMATION  SHARED  BECAUSE  OF  THIS  AGREEMENT
 SHALL  NOT  BE  AVAILABLE  FOR  DISCLOSURE OR INSPECTION UNDER THE STATE
 FREEDOM OF INFORMATION LAW.
   (II) ALLOW THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE  SERVICES  AND
 ITS AGENTS ACCESS TO LIMITED AND SPECIFIC INFORMATION NECESSARY TO MONI-
 TOR  COMPLIANCE WITH PROGRAM ELIGIBILITY REQUIREMENTS.  SUCH INFORMATION
 SHALL BE CONFIDENTIAL AND ONLY USED  FOR  THE  STATED  PURPOSE  OF  THIS
 SECTION.

 S. 1509--C                         41                         A. 2009--C
 
   (III)  DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED PROGRAM ELIGIBILITY
 REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY,  INCLUDING  THE
 NUMBER  OF HOURS WORKED BY ANY ELIGIBLE INDIVIDUAL, FOR THE COMMISSIONER
 TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED.
   2.  (I) AFTER REVIEWING THE APPLICATION AND FINDING IT SUFFICIENT, THE
 COMMISSIONER SHALL ISSUE A CERTIFICATE OF TAX CREDIT  BY  MARCH  THIRTY-
 FIRST.  SUCH  CERTIFICATE SHALL INCLUDE, BUT NOT BE LIMITED TO, THE NAME
 AND EMPLOYER IDENTIFICATION NUMBER OF THE CERTIFIED EMPLOYER, THE AMOUNT
 OF CREDIT THAT THE CERTIFIED EMPLOYER MAY CLAIM, AND ANY OTHER  INFORMA-
 TION THE COMMISSIONER OF TAXATION AND FINANCE DETERMINES IS NECESSARY.
   (II)  IN DETERMINING THE AMOUNT OF CREDIT THAT ANY EMPLOYER MAY CLAIM,
 THE COMMISSIONER SHALL REVIEW ALL CLAIMS SUBMITTED FOR CREDIT BY EMPLOY-
 ERS AND, TO THE EXTENT  THAT  THE  TOTAL  AMOUNT  CLAIMED  BY  EMPLOYERS
 EXCEEDS  THE  AMOUNT  ALLOCATED  FOR  THE PROGRAM IN THAT CALENDAR YEAR,
 SHALL ISSUE CREDITS ON A PRO-RATA BASIS CORRESPONDING TO EACH CLAIMANT'S
 SHARE OF THE TOTAL CLAIMED AMOUNT.
   (D) ELIGIBILITY. A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CRED-
 IT EQUAL TO THE PRODUCT OF ONE DOLLAR AND THE NUMBER OF HOURS WORKED  BY
 EACH  ELIGIBLE  INDIVIDUAL  DURING  SUCH ELIGIBLE INDIVIDUAL'S PERIOD OF
 EMPLOYMENT.  THE CREDIT SHALL NOT BE ALLOWED UNLESS THE  ELIGIBLE  INDI-
 VIDUAL  HAS  WORKED IN STATE FOR A MINIMUM OF FIVE HUNDRED HOURS FOR THE
 CERTIFIED EMPLOYER, AND THE CREDIT CANNOT EXCEED  TWO  THOUSAND  DOLLARS
 PER ELIGIBLE INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYER IN THE STATE.
 THE  CERTIFIED  EMPLOYER  MAY  CLAIM A CREDIT FOR EACH ELIGIBLE EMPLOYEE
 STARTING ON THE DAY THE EMPLOYEE IS HIRED AND ENDS ON  DECEMBER  THIRTY-
 FIRST OF THE IMMEDIATELY SUCCEEDING CALENDAR YEAR OR THE LAST DAY OF THE
 EMPLOYEE'S  EMPLOYMENT BY THE CERTIFIED EMPLOYER, WHICHEVER COMES FIRST.
 IF AN EMPLOYEE HAS WORKED IN EXCESS OF FIVE HUNDRED  HOURS  BETWEEN  THE
 DATE  OF  HIRING AND DECEMBER THIRTY-FIRST OF THAT YEAR, AN EMPLOYER CAN
 ELECT TO COMPUTE AND CLAIM A CREDIT FOR SUCH EMPLOYEE IN THAT YEAR BASED
 ON THE HOURS WORKED BY DECEMBER THIRTY-FIRST. ALTERNATIVELY, THE EMPLOY-
 ER MAY ELECT TO INCLUDE SUCH INDIVIDUAL IN THE COMPUTATION OF THE CREDIT
 IN THE YEAR IMMEDIATELY SUCCEEDING THE YEAR IN WHICH  THE  EMPLOYEE  WAS
 HIRED.  IN  SUCH  CASE, THE CREDIT SHALL BE COMPUTED ON THE BASIS OF ALL
 HOURS WORKED BY SUCH ELIGIBLE INDIVIDUAL FROM THE DATE OF  HIRE  TO  THE
 EARLIER  OF  THE  LAST DAY OF EMPLOYMENT OR DECEMBER THIRTY-FIRST OF THE
 SUCCEEDING YEAR. HOWEVER, IN NO EVENT MAY AN  EMPLOYEE  GENERATE  CREDIT
 FOR  HOURS WORKED IN EXCESS OF TWO THOUSAND HOURS. AN EMPLOYER MAY CLAIM
 CREDIT ONLY ONCE WITH RESPECT TO ANY ELIGIBLE  INDIVIDUAL  AND  MAY  NOT
 AGGREGATE  HOURS OF TWO OR MORE EMPLOYEES TO REACH THE MINIMUM NUMBER OF
 HOURS.
   (E) DUTIES  OF  THE  COMMISSIONER.  THE  COMMISSIONER  SHALL  ANNUALLY
 PROVIDE  TO  THE  COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE
 INFORMATION ABOUT THE PROGRAM INCLUDING, BUT NOT LIMITED TO, THE  NUMBER
 OF CERTIFIED EMPLOYERS THEN PARTICIPATING IN THE PROGRAM, UNIQUE IDENTI-
 FYING  INFORMATION  FOR  EACH CERTIFIED EMPLOYER, THE NUMBER OF ELIGIBLE
 INDIVIDUALS EMPLOYED BY  EACH  CERTIFIED  EMPLOYER,  UNIQUE  IDENTIFYING
 INFORMATION  FOR  EACH  ELIGIBLE  INDIVIDUAL  EMPLOYED  BY THE CERTIFIED
 EMPLOYERS, THE NUMBER OF HOURS WORKED BY SUCH ELIGIBLE INDIVIDUALS,  THE
 TOTAL DOLLAR AMOUNT OF CLAIMS FOR CREDIT, AND THE DOLLAR AMOUNT OF CRED-
 IT GRANTED TO EACH CERTIFIED EMPLOYER.
   (F)  CERTIFIED  EMPLOYER'S  TAXABLE  YEAR. IF THE CERTIFIED EMPLOYER'S
 TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM
 THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX  CREDIT  ON  THE  CALENDAR
 YEAR  RETURN  FOR WHICH THE CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE
 CERTIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE  EMPLOYER  SHALL

 S. 1509--C                         42                         A. 2009--C
 
 BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CRED-
 IT  ON  THE RETURN FOR THE FISCAL YEAR THAT INCLUDES THE LAST DAY OF THE
 CALENDAR YEAR COVERED BY THE CERTIFICATE OF TAX CREDIT.
   (G)  CROSS  REFERENCES.  FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THE TAX LAW:
   1. ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53.
   2. ARTICLE 22: SECTION 606, SUBSECTION (JJJ).
   3. ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 53 to read as follows:
   53. RECOVERY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A
 CERTIFIED  EMPLOYER  PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
 THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE  COMMISSIONER  OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
 ON  SUCH  CERTIFICATE  OF  TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A
 PARTNERSHIP OR MEMBER OF A  LIMITED  LIABILITY  COMPANY  THAT  HAS  BEEN
 CERTIFIED  BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE
 ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF  THE
 MENTAL  HYGIENE  LAW  SHALL  BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
 EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS
 THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
 SECTION  TWO  HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF THE
 CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
 TAX  TO  THAT  AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE
 FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT
 TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE  PAID
 THEREON.
   (C)  TAX  RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH
 TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF  OF
 RECEIPT  OF  ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF
 THE OFFICE OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  PURSUANT  TO
 SECTION 32.38 OF THE MENTAL HYGIENE LAW.
   § 3. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606
 of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
 follows:
 
 (XLIV) RECOVERY TAX CREDIT UNDER     AMOUNT OF CREDIT UNDER
 SUBSECTION (JJJ)                     SUBDIVISION FIFTY-THREE OF
                                      SECTION TWO HUNDRED TEN-B
 
   § 4. Section 606 of the tax law is amended by adding a new  subsection
 (jjj) to read as follows:
   (JJJ) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS
 A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
 THAT  HAS  RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
 ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS  A  PARTNER  IN  A
 PARTNERSHIP,  MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN
 S CORPORATION THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE  OFFICE
 OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  AS A QUALIFIED EMPLOYER

 S. 1509--C                         43                         A. 2009--C
 
 PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS
 PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED  LIABIL-
 ITY COMPANY OR S CORPORATION.
   (2)  OVERPAYMENT.  IF  THE  AMOUNT  OF  THE  CREDIT ALLOWED UNDER THIS
 SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXA-
 BLE YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT  OF  TAX  TO  BE
 CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, NO INTEREST  WILL
 BE PAID THEREON.
   (3)  TAX  RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH
 TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF  OF
 RECEIPT  OF  ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF
 THE OFFICE OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  PURSUANT  TO
 SECTION 32.38 OF THE MENTAL HYGIENE LAW.
   §  5.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT  IS
 A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
 THAT  HAS  RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE COMMISSIONER OF
 THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
 ON SUCH CERTIFICATE OF TAX CREDIT. A TAXPAYER THAT IS  A  PARTNER  IN  A
 PARTNERSHIP  OR  MEMBER  OF  A  LIMITED  LIABILITY COMPANY THAT HAS BEEN
 CERTIFIED BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND  SUBSTANCE
 ABUSE  SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE
 MENTAL HYGIENE LAW SHALL BE ALLOWED ITS PRO RATA  SHARE  OF  THE  CREDIT
 EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  MINIMUM  TAX  FIXED  BY  PARAGRAPH FOUR OF SUBDIVISION (A) OF
 SECTION FIFTEEN HUNDRED TWO  OF  THIS  ARTICLE  OR  BY  SECTION  FIFTEEN
 HUNDRED  TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE
 AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
 REDUCES  THE  TAX  TO  SUCH  AMOUNT,  THEN ANY AMOUNT OF CREDIT THUS NOT
 DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS  AN  OVERPAYMENT  OF
 TAX  TO  BE  CREDITED  OR  REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
 SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
 PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED  TO  ATTACH
 TO  ITS  TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF
 RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE  COMMISSIONER  OF
 THE  OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES PURSUANT TO
 SECTION 32.38 OF THE MENTAL HYGIENE LAW.
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2020 and shall  apply  to  those
 eligible individuals hired after this act shall take effect.
 
                                  PART X
 
   Section  1.  Paragraph  (a) of subdivision 9 of section 208 of the tax
 law is amended by adding a new subparagraph 20 to read as follows:
   (20) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION  (A)  OF  SECTION
 ONE  HUNDRED  EIGHTEEN  OF  THE  INTERNAL  REVENUE  CODE,  FROM THE TERM
 "CONTRIBUTION TO THE CAPITAL  OF  THE  TAXPAYER"  BY  PARAGRAPH  TWO  OF

 S. 1509--C                         44                         A. 2009--C

 SUBSECTION  (B)  OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE
 CODE.
   §  2. Paragraph 1 of subdivision (b) of section 1503 of the tax law is
 amended by adding a new subparagraph (T) to read as follows:
   (T) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE
 HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE  TERM  "CONTRIB-
 UTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B)
 OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE.
   §  3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
 trative code of the city of New York is amended by adding a new subpara-
 graph 14 to read as follows:
   (14) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION  (A)  OF  SECTION
 ONE  HUNDRED  EIGHTEEN  OF  THE  INTERNAL  REVENUE  CODE,  FROM THE TERM
 "CONTRIBUTION TO THE CAPITAL  OF  THE  TAXPAYER"  BY  PARAGRAPH  TWO  OF
 SUBSECTION  (B)  OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE
 CODE.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART Y
 
                           Intentionally Omitted
 
                                  PART Z
 
   Section 1. Paragraph 3 of subdivision (a) and paragraphs 2  and  5  of
 subdivision  (c)  of section 43 of the tax law, as added by section 7 of
 part K of chapter 59 of the  laws  of  2017,  are  amended  to  read  as
 follows:
   (3)  The total amount of credit allowable to a qualified life sciences
 company, or, if the  life  sciences  company  is  properly  included  or
 required  to  be  included  in a combined report, to the combined group,
 taken in the aggregate, shall not exceed five hundred  thousand  dollars
 in  any taxable year. If the [life sciences company] TAXPAYER is a part-
 ner in a partnership THAT IS A LIFE SCIENCES COMPANY or A shareholder of
 a New York S corporation THAT IS A LIFE SCIENCES COMPANY, then the total
 amount of credit allowable shall be applied at the entity level, so that
 the total amount of credit allowable to all the partners or shareholders
 of each such entity, taken  in  the  aggregate,  does  not  exceed  five
 hundred thousand dollars in any taxable year.
   (2) "New business" means any business that qualifies as a new business
 under  either  paragraph  (f)  of subdivision one of section two hundred
 ten-B or paragraph ten of subsection [one] (A) of  section  six  hundred
 six of this chapter.
   (5) "Related person" means a related person as defined in subparagraph
 [(c)]  (C)  of  paragraph  three of subsection (b) of section 465 of the
 internal revenue code.  For  this  purpose,  a  "related  person"  shall
 include  an entity that would have qualified as a "related person" if it
 had not been dissolved, liquidated, merged with another entity or other-
 wise ceased to exist or operate.
   § 2. Subdivision 5 of section 209  of  the  tax  law,  as  amended  by
 section  5  of  part  A of chapter 59 of the laws of 2014, is amended to
 read as follows:
   5. For any taxable year of a real estate investment trust  as  defined
 in section eight hundred fifty-six of the internal revenue code in which
 such  trust  is  subject  to federal income taxation under section eight

 S. 1509--C                         45                         A. 2009--C
 
 hundred fifty-seven of such code, such trust shall be subject to  a  tax
 computed under either paragraph (a) or (d) of subdivision one of section
 two  hundred ten of this chapter, whichever is greater, and shall not be
 subject to any tax under article thirty-three of this chapter except for
 a  captive REIT required to file a combined return under subdivision (f)
 of section fifteen hundred fifteen of this chapter. In the case of  such
 a  real  estate investment trust, including a captive REIT as defined in
 section two of this chapter, the term "entire net  income"  means  "real
 estate  investment  trust taxable income" as defined in paragraph two of
 subdivision (b) of section eight hundred  fifty-seven  (as  modified  by
 section  eight  hundred  fifty-eight) of the internal revenue code [plus
 the amount taxable under paragraph three of subdivision (b)  of  section
 eight  hundred  fifty-seven  of such code], subject to the modifications
 required by subdivision nine of section two hundred eight of this  arti-
 cle.
   §  3. Paragraph (a) of subdivision 8 of section 211 of the tax law, as
 amended by chapter 760 of the laws  of  1992,  is  amended  to  read  as
 follows:
   (a)  Except  in  accordance with proper judicial order or as otherwise
 provided by law, it shall be unlawful  for  any  tax  commissioner,  any
 officer  or employee of the department [of taxation and finance], or any
 person who, pursuant to  this  section,  is  permitted  to  inspect  any
 report, or to whom any information contained in any report is furnished,
 or  any  person engaged or retained by such department on an independent
 contract basis, or any person who in any manner may acquire knowledge of
 the contents of a report filed pursuant to this article, to  divulge  or
 make  known  in  any  manner the amount of income or any particulars set
 forth or disclosed in  any  report  under  this  article.  The  officers
 charged  with  the  custody  of  such  reports  shall not be required to
 produce any of them or evidence of anything contained  in  them  in  any
 action  or proceeding in any court, except on behalf of the state or the
 commissioner in an action or proceeding under  the  provisions  of  this
 chapter or in any other action or proceeding involving the collection of
 a tax due under this chapter to which the state or the commissioner is a
 party or a claimant, or on behalf of any party to any action or proceed-
 ing under the provisions of this article when the reports or facts shown
 thereby  are  directly  involved in such action or proceeding, in any of
 which events the court may require the production of, and may  admit  in
 evidence,  so  much of said reports or of the facts shown thereby as are
 pertinent to the action or proceeding, and  no  more.  The  commissioner
 may,  nevertheless,  publish a copy or a summary of any determination or
 decision rendered after the formal hearing provided for in  section  one
 thousand  eighty-nine of this chapter. Nothing herein shall be construed
 to prohibit the delivery to a corporation or its duly authorized  repre-
 sentative  of  a  copy  of  any  report filed by it, nor to prohibit the
 publication of statistics so classified as to prevent the identification
 of particular reports and the  items  thereof;  or  the  publication  of
 delinquent  lists  showing the names of taxpayers who have failed to pay
 their taxes at the time and  in  the  manner  provided  by  section  two
 hundred  thirteen of this chapter together with any relevant information
 which in the opinion of the commissioner may assist in the collection of
 such delinquent taxes; or the inspection  by  the  attorney  general  or
 other  legal  representatives  of  the state of the report of any corpo-
 ration which shall bring action to set aside or  review  the  tax  based
 thereon, or against which an action or proceeding under this chapter has
 been  recommended  by  the  commissioner  of taxation and finance or the

 S. 1509--C                         46                         A. 2009--C
 
 attorney general or has  been  instituted;  or  the  inspection  of  the
 reports of any corporation by the comptroller or duly designated officer
 or  employee  of the state department of audit and control, for purposes
 of  the audit of a refund of any tax paid by such corporation under this
 article[; and nothing in this chapter shall be construed to prohibit the
 publication of the issuer's allocation percentage of any corporation, as
 such term "issuer's allocation percentage" is  defined  in  subparagraph
 one  of paragraph (b) of subdivision three of section two hundred ten of
 this article].
   § 4. Subdivision (a) of section 213-b of the tax law,  as  amended  by
 section  10  of  part Q of chapter 60 of the laws of 2016, is amended to
 read as follows:
   (a) First installments for certain taxpayers.--In privilege periods of
 twelve months ending at any  time  during  the  calendar  year  nineteen
 hundred  seventy  and  thereafter,  every  taxpayer  subject  to the tax
 imposed by section two hundred nine of this chapter must  pay  with  the
 report  required to be filed for the preceding privilege period, or with
 an application for extension of the time  for  filing  the  report,  for
 taxable  years beginning before January first, two thousand sixteen, and
 must pay on or before the fifteenth day of the third month of such priv-
 ilege periods, for taxable years beginning on or  after  January  first,
 two  thousand sixteen, an amount equal to (i) twenty-five percent of the
 second preceding year's tax if the second preceding year's tax  exceeded
 one  thousand dollars but was equal to or less than one hundred thousand
 dollars, or (ii) forty percent of the second preceding year's tax if the
 second preceding year's tax exceeded one hundred  thousand  dollars.  If
 the  second  preceding year's tax under section two hundred nine of this
 chapter exceeded one thousand dollars and the taxpayer is subject to the
 tax surcharge imposed by section two hundred nine-B of this chapter, the
 taxpayer must also pay with the tax  surcharge  report  required  to  be
 filed  for the second preceding privilege period, or with an application
 for extension of the time for  filing  the  report,  for  taxable  years
 beginning before January first, two thousand sixteen, and must pay on or
 before  the  fifteenth day of the third month of such privilege periods,
 for taxable years beginning on or  after  January  first,  two  thousand
 sixteen, an amount equal to (i) twenty-five percent of the tax surcharge
 imposed for the second preceding year if the second preceding year's tax
 was  equal  to  or less than one hundred thousand dollars, or (ii) forty
 percent of the tax surcharge imposed for the second  preceding  year  if
 the  second  preceding year's tax exceeded one hundred thousand dollars.
 Provided, however, that every taxpayer that is [an] A NEW YORK S  corpo-
 ration  must  pay with the report required to be filed for the preceding
 privilege period, or with an application for extension of the  time  for
 filing  the  report,  an  amount equal to (i) twenty-five percent of the
 preceding year's tax if the preceding year's tax exceeded  one  thousand
 dollars  but  was equal to or less than one hundred thousand dollars, or
 (ii) forty percent of the preceding year's tax if the  preceding  year's
 tax  exceeded one hundred thousand dollars. [If the preceding year's tax
 under section two hundred nine of this  article  exceeded  one  thousand
 dollars and such taxpayer that is an S corporation is subject to the tax
 surcharge  imposed  by  section  two hundred nine-B of this article, the
 taxpayer must also pay with the tax  surcharge  report  required  to  be
 filed  for  the  preceding  privilege period, or with an application for
 extension of the time for filing the report,  an  amount  equal  to  (i)
 twenty-five  percent of the tax surcharge imposed for the preceding year
 if the preceding year's tax was equal equal to or less than one  hundred

 S. 1509--C                         47                         A. 2009--C

 thousand dollars, or (ii) forty percent of the tax surcharge imposed for
 the  preceding  year  if  the  preceding year's tax exceeded one hundred
 thousand dollars.]
   §  5.  Subdivision  (e) of section 213-b of the tax law, as amended by
 chapter 166 of the laws of 1991, the subdivision heading as  amended  by
 section  10-b of part Q of chapter 60 of the laws of 2016, is amended to
 read as follows:
   (e) Interest on certain installments based  on  the  second  preceding
 year's  tax.--Notwithstanding  the  provisions  of  section one thousand
 eighty-eight of this chapter or of section sixteen of the state  finance
 law,  if  an  amount paid pursuant to subdivision (a) exceeds the tax or
 tax surcharge, respectively, shown on the report required to be filed by
 the taxpayer for the privilege period during which the amount was  paid,
 interest  shall be allowed and paid on the amount by which the amount so
 paid pursuant to such subdivision exceeds such tax or tax surcharge.  In
 the  case  of amounts so paid pursuant to subdivision (a), such interest
 shall be allowed and paid at the overpayment rate set by the commission-
 er of taxation and finance pursuant to section one  thousand  ninety-six
 of this chapter, or if no rate is set, at the rate of six per centum per
 annum  from  the  date of payment of the amount so paid pursuant to such
 subdivision to the fifteenth day of the [third] FOURTH  month  following
 the close of the taxable year, provided, however, that no interest shall
 be  allowed or paid under this subdivision if the amount thereof is less
 than one dollar or if such interest becomes payable solely because of  a
 carryback of a net operating loss in a subsequent privilege period.
   §  6.  Subdivision  (a)  of section 1503 of the tax law, as amended by
 chapter 817 of the laws of 1987, is amended to read as follows:
   (a) The entire net income of a taxpayer shall be its total net  income
 from  all  sources which shall be presumably the same as the life insur-
 ance company taxable income (which shall include, in the case of a stock
 life insurance company [which] THAT has A BALANCE, AS DETERMINED  AS  OF
 THE  CLOSE  OF SUCH COMPANY'S LAST TAXABLE YEAR BEGINNING BEFORE JANUARY
 FIRST, TWO THOUSAND  EIGHTEEN,  IN  an  existing  policyholders  surplus
 account,  AS SUCH TERM IS DEFINED IN SECTION 815 OF THE INTERNAL REVENUE
 CODE AS SUCH SECTION WAS IN EFFECT FOR TAXABLE  YEARS  BEGINNING  BEFORE
 JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount of [direct and indirect
 distributions during the taxable year to shareholders from such account]
 ONE-EIGHTH  OF SUCH BALANCE), taxable income of a partnership or taxable
 income, but not alternative minimum taxable income, as the case may  be,
 which  the  taxpayer is required to report to the United States treasury
 department, for the taxable year or, in the case of a corporation exempt
 from federal income tax (other than the tax on unrelated business  taxa-
 ble  income  imposed under section 511 of the internal revenue code) but
 not exempt from tax under  section  fifteen  hundred  one,  the  taxable
 income  which  such  taxpayer would have been required to report but for
 such exemption, except as hereinafter provided.
   § 7. Intentionally omitted.
   § 8. Section 2 of chapter 369 of the laws of 2018 amending the tax law
 relating to unrelated business taxable income of a taxpayer, is  amended
 to read as follows:
   §  2. This act shall take effect immediately and shall apply to [taxa-
 ble years beginning] AMOUNTS PAID OR INCURRED on and  after  January  1,
 2018.
   §  9. Paragraph (b) of subdivision 8 of section 11-602 of the adminis-
 trative code of the city of New York is amended by adding a new subpara-
 graph 20 to read as follows:

 S. 1509--C                         48                         A. 2009--C
 
   (20) THE AMOUNT OF ANY FEDERAL DEDUCTION THAT WOULD HAVE BEEN  ALLOWED
 PURSUANT  TO  SECTION  250(A)(1)(A)  OF THE INTERNAL REVENUE CODE IF THE
 TAXPAYER HAD NOT MADE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER  ONE  OF
 THE INTERNAL REVENUE CODE.
   §  10.  Clause (i) of subparagraph 1 of paragraph (b) of subdivision 3
 of section 11-604 of the administrative code of the city of New York, as
 added by chapter 241 of the laws of 1989, is amended to read as follows:
   (i) In the case of an issuer or obligor  subject  to  tax  under  this
 subchapter,  SUBCHAPTER  THREE-A  or subchapter four of this chapter, or
 subject to tax as a utility corporation under  chapter  eleven  of  this
 title, the issuer's allocation percentage shall be the percentage of the
 appropriate  measure  (as  defined  hereinafter) which is required to be
 allocated within the city on the report or reports, if any, required  of
 the  issuer  or  obligor  under  this  title for the preceding year. The
 appropriate measure referred to in the preceding sentence shall  be:  in
 the  case of an issuer or obligor subject to this subchapter OR SUBCHAP-
 TER THREE-A, entire capital; in the case of an issuer or obligor subject
 to subchapter four of this chapter, issued capital stock; in the case of
 an issuer or obligor subject to chapter eleven of this title as a utili-
 ty corporation, gross income.
   § 11. This act shall take effect immediately, provided, however, that:
   (i) section one of this act shall be deemed to have been in full force
 and effect on and after the effective date of part K of  chapter  59  of
 the laws of 2017;
   (ii)  sections two and six of this act shall be deemed to have been in
 full force and effect on and after the effective  date  of  part  KK  of
 chapter  59  of the laws of 2018; provided, however, that section six of
 this act shall apply to taxable years beginning on or after  January  1,
 2018 through taxable years beginning on or before January 1, 2025;
   (iii)  section  three of this act shall be deemed to have been in full
 force and effect on and after the effective date of part A of chapter 59
 of the laws of 2014;
   (iv) sections four and five of this act shall be deemed to  have  been
 in  full  force  and effect on and after the effective date of part Q of
 chapter 60 of the laws of 2016;
   (v) section eight of this act shall be deemed to  have  been  in  full
 force  and  effect on and after the effective date of chapter 369 of the
 laws of 2018;
   (vi) section nine of this act shall apply to taxable  years  beginning
 on and after January 1, 2018.
 
                                  PART AA
 
   Section  1.  Section  487  of  the real property tax law is amended by
 adding a new subdivision 10 to read as follows:
   10. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS  SECTION,  ON  OR
 AFTER  APRIL  FIRST,  TWO  THOUSAND  NINETEEN,  A  COUNTY, CITY, TOWN OR
 VILLAGE MAY BY LOCAL LAW OR A  SCHOOL  DISTRICT,  OTHER  THAN  A  SCHOOL
 DISTRICT TO WHICH ARTICLE FIFTY-TWO OF THE EDUCATION LAW APPLIES, MAY BY
 RESOLUTION PROVIDE THAT REAL PROPERTY THAT COMPRISES OR INCLUDES A SOLAR
 OR  WIND  ENERGY  SYSTEM,  FARM  WASTE ENERGY SYSTEM, MICROHYDROELECTRIC
 ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM, MICROCOMBINED  HEAT
 AND  POWER  GENERATING EQUIPMENT SYSTEM, ELECTRIC ENERGY STORAGE SYSTEM,
 OR FUEL-FLEXIBLE LINEAR GENERATOR AS SUCH TERMS  ARE  DEFINED  IN  PARA-
 GRAPHS  (B), (F), (H), (J), (L), (N), AND (O) OF SUBDIVISION ONE OF THIS
 SECTION (HEREINAFTER, INDIVIDUALLY OR  COLLECTIVELY,  "ENERGY  SYSTEM"),

 S. 1509--C                         49                         A. 2009--C
 
 SHALL  BE  PERMANENTLY  EXEMPT  FROM  ANY  TAXATION,  SPECIAL AD VALOREM
 LEVIES, AND SPECIAL ASSESSMENTS TO THE EXTENT PROVIDED IN  SECTION  FOUR
 HUNDRED NINETY OF THIS ARTICLE, AND THE OWNER OF SUCH PROPERTY SHALL NOT
 BE  SUBJECT  TO ANY REQUIREMENT TO ENTER INTO A CONTRACT FOR PAYMENTS IN
 LIEU OF TAXES IN ACCORDANCE WITH SUBDIVISION NINE OF THIS  SECTION,  IF:
 (A)  THE  ENERGY  SYSTEM  IS INSTALLED ON REAL PROPERTY THAT IS OWNED OR
 CONTROLLED BY THE STATE OF NEW YORK, A DEPARTMENT OR AGENCY THEREOF,  OR
 A  STATE AUTHORITY AS THAT TERM IS DEFINED BY SUBDIVISION ONE OF SECTION
 TWO OF THE PUBLIC AUTHORITIES LAW; AND (B) THE  STATE  OF  NEW  YORK,  A
 DEPARTMENT  OR  AGENCY  THEREOF,  OR  A  STATE AUTHORITY AS THAT TERM IS
 DEFINED BY SUBDIVISION ONE OF SECTION TWO OF THE PUBLIC AUTHORITIES  LAW
 HAS  AGREED TO PURCHASE THE ENERGY PRODUCED BY SUCH ENERGY SYSTEM OR THE
 ENVIRONMENTAL CREDITS OR ATTRIBUTES CREATED  BY  VIRTUE  OF  THE  ENERGY
 SYSTEM'S  OPERATION,  IN  ACCORDANCE  WITH  A WRITTEN AGREEMENT WITH THE
 OWNER OR OPERATOR OF SUCH ENERGY SYSTEM. SUCH EXEMPTION SHALL BE GRANTED
 ONLY UPON APPLICATION BY THE OWNER  OF  THE  REAL  PROPERTY  ON  A  FORM
 PRESCRIBED  BY  THE  COMMISSIONER, WHICH APPLICATION SHALL BE FILED WITH
 THE ASSESSOR OF THE APPROPRIATE COUNTY, CITY,  TOWN  OR  VILLAGE  ON  OR
 BEFORE THE TAXABLE STATUS DATE OF SUCH COUNTY, CITY, TOWN OR VILLAGE.
   §  2.  Section 490 of the real property tax law, as amended by chapter
 87 of the laws of 2001, is amended to read as follows:
   § 490. Exemption from special ad valorem levies  and  special  assess-
 ments.    Real property exempt from taxation pursuant to subdivision two
 of section four hundred, subdivision one of section four  hundred  four,
 subdivision  one  of  section  four  hundred  six, sections four hundred
 eight, four hundred ten, four hundred ten-a, four  hundred  ten-b,  four
 hundred  eighteen,  four  hundred  twenty-a, four hundred twenty-b, four
 hundred twenty-two, four hundred twenty-six, four hundred  twenty-seven,
 four hundred twenty-eight, four hundred thirty, four hundred thirty-two,
 four  hundred thirty-four, four hundred thirty-six, four hundred thirty-
 eight, four hundred fifty, four hundred fifty-two, four  hundred  fifty-
 four,  four  hundred  fifty-six,  four  hundred sixty-four, four hundred
 seventy-two, four hundred seventy-four, [and] four  hundred  eighty-five
 AND SUBDIVISION TEN OF SECTION FOUR HUNDRED EIGHTY-SEVEN of this chapter
 shall  also be exempt from special ad valorem levies and special assess-
 ments against real property located outside cities and  villages  for  a
 special  improvement  or  service  or  a special district improvement or
 service and special ad valorem levies and special assessments imposed by
 a county improvement district or district corporation except  (1)  those
 levied  to  pay  for  the  costs,  including interest and incidental and
 preliminary  costs,  of  the  acquisition,  installation,  construction,
 reconstruction and enlargement of or additions to the following improve-
 ments,  including  original equipment, furnishings, machinery or appara-
 tus,  and  the  replacements  thereof:  water  supply  and  distribution
 systems;  sewer  systems  (either  sanitary or surface drainage or both,
 including purification, treatment  or  disposal  plants  or  buildings);
 waterways  and  drainage improvements; street, highway, road and parkway
 improvements (including sidewalks, curbs, gutters,  drainage,  landscap-
 ing,  grading or improving the right of way) and (2) special assessments
 payable in installments on an indebtedness including interest contracted
 prior to July first, nineteen hundred fifty-three, pursuant  to  section
 two  hundred forty-two of the town law or pursuant to any other compara-
 ble provision of law.
   § 3. This act shall take effect immediately.
 
                                  PART BB

 S. 1509--C                         50                         A. 2009--C
 
   Section 1. Subdivision 1 of section 107  of  the  racing,  pari-mutuel
 wagering and breeding law, as added by section 1 of part A of chapter 60
 of the laws of 2012, is amended as follows:
   1.  No  person shall be appointed to or employed by the commission if,
 during the period commencing three years prior to appointment or employ-
 ment, [said] SUCH person held any direct or  indirect  interest  in,  or
 employment  by, any corporation, association or person engaged in gaming
 activity within the state. Prior  to  appointment  or  employment,  each
 member, officer or employee of the commission shall swear or affirm that
 he  or she possesses no interest in any corporation or association hold-
 ing a franchise, license, registration, certificate or permit issued  by
 the commission. Thereafter, no member or officer of the commission shall
 hold  any  direct  interest in or be employed by any applicant for or by
 any corporation, association or person holding a license,  registration,
 franchise,  certificate  or permit issued by the commission for a period
 of four years commencing on the date his  or  her  membership  with  the
 commission  terminates.  Further,  no  employee  of  the  commission may
 acquire any direct or indirect interest in, or accept  employment  with,
 any  applicant  for or any person holding a license, registration, fran-
 chise, certificate or permit issued by the commission for  a  period  of
 two  years  commencing at the termination of employment with the commis-
 sion. THE COMMISSION MAY, BY RESOLUTION ADOPTED BY UNANIMOUS VOTE  AT  A
 PROPERLY NOTICED PUBLIC MEETING, WAIVE FOR GOOD CAUSE THE PRE-EMPLOYMENT
 RESTRICTIONS  ENUMERATED  IN THIS SUBDIVISION FOR A PROSPECTIVE EMPLOYEE
 WHOSE DUTIES AND RESPONSIBILITIES ARE PRIMARILY  ON  RACETRACK  GROUNDS.
 SUCH  ADOPTED RESOLUTION SHALL STATE THE REASONS FOR WAIVING THE PRE-EM-
 PLOYMENT CONDITIONS FOR THE PROSPECTIVE EMPLOYEE,  INCLUDING  A  FINDING
 THAT  THERE  WERE NO OTHER QUALIFIED CANDIDATES WITH THE DESIRED EXPERI-
 ENCE FOR THE SPECIFIED POSITION.
   § 2. This act shall take effect immediately.
 
                                  PART CC
 
                           Intentionally Omitted
 
                                  PART DD

   Section 1. This Part enacts  into  law  legislation  relating  to  the
 thoroughbred  breeding and development fund, the Harry M. Zweig memorial
 fund and prize payment amounts and revenue distributions of lottery game
 sales. Each component is wholly contained within a Subpart identified as
 Subparts A through D. The effective date for each  particular  provision
 contained  within  such Subpart is set forth in the last section of such
 Subpart. Any provision  in  any  section  contained  within  a  Subpart,
 including  the effective date of the Subpart, which makes a reference to
 a section "of this act", when used in connection  with  that  particular
 component,  shall  be  deemed  to  mean  and  refer to the corresponding
 section of the Subpart in which it is found. Section three of this  Part
 sets forth the general effective date of this Part.

                                 SUBPART A
 
                          Intentionally omitted.
 
                                 SUBPART B

 S. 1509--C                         51                         A. 2009--C
 
   Section  1.  Subdivision  1  of section 252 of the racing, pari-mutuel
 wagering and breeding law, as amended by section 11 of part A of chapter
 60 of the laws of 2012, is amended to read as follows:
   1. A corporation to be known as the New York state thoroughbred breed-
 ing and development fund corporation is hereby created. Such corporation
 shall  be  a  body  corporate  and politic constituting a public benefit
 corporation. It shall be administered by a board of directors consisting
 of the chair of the state gaming commission or his or her designee,  the
 commissioner  of  agriculture  and  markets,  three members of the state
 gaming commission OR THEIR DESIGNEES, ALL OF WHOM ARE EXPERIENCED,  HAVE
 KNOWLEDGE,  OR  HAVE  BEEN  ACTIVELY  ENGAGED  IN THE THOROUGHBRED HORSE
 INDUSTRY IN THE STATE as designated by  the  governor  and  six  members
 appointed  by  the  governor,  all  of whom are experienced or have been
 actively engaged in the breeding of  thoroughbred  horses  in  New  York
 state,  one,  the  president  or the executive director of the statewide
 thoroughbred breeders association representing the majority of  breeders
 of  registered thoroughbreds in New York state, one upon the recommenda-
 tion of the majority leader of the senate, one upon  the  recommendation
 of  the  speaker  of  the  assembly,  one upon the recommendation of the
 minority leader of the senate, and one upon the  recommendation  of  the
 minority  leader  of  the  assembly.  Two of the appointed members shall
 initially serve for a two year term, two of the appointed members  shall
 initially  serve  for a three year term and two of the appointed members
 shall initially serve for a four year  term.  All  successors  appointed
 members  shall serve for a four year term. All members shall continue in
 office until their successors have been  appointed  and  qualified.  The
 governor  shall  designate  the chair from among the sitting members who
 shall serve as such at the pleasure of the governor.
   § 2. This act shall take effect immediately.
 
                                 SUBPART C
 
   Section 1. Section 703 of the racing, pari-mutuel wagering and  breed-
 ing law is amended by adding a new subdivision 3 to read as follows:
   3.  UPON  THE AUTHORIZATION THROUGH A RESOLUTION BY THE COMMITTEE, THE
 FUND MAY ACQUIRE MONEYS BY THE ACCEPTANCE OF CONDITIONAL GIFTS,  GRANTS,
 DEVISES  OR  BEQUESTS GIVEN IN FURTHERANCE OF THE MISSION OF THE FUND TO
 THE EXTENT THAT ANY SUCH GIFT, GRANT, DEVISE, OR BEQUEST IS IN THE  FORM
 OF  CASH, SECURITIES, OR OTHER FORM OF PERSONAL PROPERTY THAT IS READILY
 CONVERTIBLE TO CASH, AND ONLY IF THE CONDITION OF THE GIFT IS THAT IT BE
 USED FOR THE UNRESTRICTED PURPOSE OF EQUINE RESEARCH. THE FUND  MAY  NOT
 ACCEPT  A  CONDITIONAL  GIFT, GRANT, DEVISE, OR BEQUEST IF THE CONDITION
 WOULD REQUIRE THE FUND TO  UNDERTAKE  TO  ACQUIRE  PROPERTY,  CONSTRUCT,
 ALTER,  OR  RENOVATE ANY REAL PROPERTY, OR ALTER OR SUSPEND THE RESEARCH
 THAT THE FUND IS ALREADY CONDUCTING OR SUPPORTING. ALL  MONEYS  ACCEPTED
 SHALL BE DEPOSITED INTO A SEGREGATED ACCOUNT SUBJECT TO THE REQUIREMENTS
 AND  CONDITIONS  OF  SUBDIVISION  ONE  OF  THIS  SECTION. THE FUND SHALL
 PROVIDE NOTICE OF THE ACCEPTANCE OF SUCH MONEYS TO  THE  GAMING  COMMIS-
 SION.
   § 2. This act shall take effect immediately.
 
                                 SUBPART D
 
   Section  1.  Paragraph  2  of subdivision a of section 1612 of the tax
 law, as amended by chapter 174 of the laws of 2013, is amended  to  read
 as follows:

 S. 1509--C                         52                         A. 2009--C
 
   (2) [sixty-five] SIXTY-FOUR AND ONE-FOURTH percent of the total amount
 for  which  tickets  have been sold for the "Instant Cash" game in which
 the participant purchases a preprinted ticket on which dollar amounts or
 symbols are concealed on the face or the back of such  ticket,  provided
 however  up  to  five  new  games may be offered during the fiscal year,
 [seventy-five] SEVENTY-FOUR AND ONE-FOURTH percent of the  total  amount
 for  which  tickets  have  been  sold  for  such five games in which the
 participant purchases a preprinted ticket on  which  dollar  amounts  or
 symbols are concealed on the face or the back of such ticket; or
   §  2. The opening paragraph of paragraph 1 of subdivision b of section
 1612 of the tax law, as amended by chapter 174 of the laws of  2013,  is
 amended to read as follows:
   Notwithstanding  section  one  hundred twenty-one of the state finance
 law, on or before the  twentieth  day  of  each  month,  the  [division]
 COMMISSION shall pay into the state treasury, to the credit of the state
 lottery  fund  created by section ninety-two-c of the state finance law,
 NOT LESS THAN FORTY-FIVE PERCENT OF THE TOTAL AMOUNT FOR  WHICH  TICKETS
 HAVE  BEEN  SOLD FOR GAMES DEFINED IN PARAGRAPH FIVE OF SUBDIVISION A OF
 THIS SECTION DURING  THE  PRECEDING  MONTH,  not  less  than  forty-five
 percent  of  the  total  amount for which tickets have be sold for games
 defined in paragraph four of subdivision a of this  section  during  the
 preceding  month,  not less than thirty-five percent of the total amount
 for which tickets have been sold for games defined in paragraph three of
 subdivision a of this section during the preceding month, not less  than
 twenty  AND  THREE-FOURTHS percent of the total amount for which tickets
 have been sold for games defined in paragraph two of  subdivision  a  of
 this section during the preceding month, provided however that for games
 with  a  prize  payout  of  [seventy-five]  SEVENTY-FOUR  AND ONE-FOURTH
 percent of the total amount for which tickets have been sold, the [divi-
 sion] COMMISSION shall pay not less than ten AND  THREE-FOURTHS  percent
 of  sales  into the state treasury and not less than twenty-five percent
 of the total amount for which tickets have been sold for  games  defined
 in  paragraph  one of subdivision a of this section during the preceding
 month; and the balance of the total revenue after payout for prizes  for
 games known as "video lottery gaming," including any joint, multi-juris-
 diction, and out-of-state video lottery gaming,
   § 3. Subdivision a of section 1614 of the tax law, as amended by chap-
 ter 170 of the laws of 1994, is amended to read as follows:
   a.  No  prize  claim  shall  be  valid  if submitted to the [division]
 COMMISSION following the expiration of a one-year time period  from  the
 date  of  the drawing or from the close of the game in which a prize was
 won, and the person otherwise entitled to such prize shall  forfeit  any
 claim  or  entitlement to such prize moneys. Unclaimed prize money, plus
 interest earned thereon, shall be retained in the lottery prize  account
 to  be  used  for  payment of special lotto or supplemental lotto prizes
 offered pursuant to the plan or plans specified in this article, or  for
 promotional  purposes  to  supplement other games on an occasional basis
 not to exceed sixteen weeks within any twelve month period  pursuant  to
 the plan or plans specified in this article.
   FURTHERMORE,  THE  COMMISSION  SHALL  NOT  USE FUNDS FROM SUCH LOTTERY
 PRIZE ACCOUNT FOR SUCH PAYMENTS, AS PROVIDED HEREIN, IN EXCESS OF  SIXTY
 MILLION  DOLLARS IN ANY FISCAL YEAR. ALL UNCLAIMED PRIZE MONEY IN EXCESS
 OF THE SIXTY MILLION DOLLARS SPENDING LIMITATION SHALL, AT  THE  END  OF
 THE  FISCAL  YEAR,  BE PAID INTO THE STATE TREASURY TO THE CREDIT OF THE
 STATE LOTTERY FUND CREATED BY SECTION NINETY-TWO-C OF THE STATE  FINANCE
 LAW.

 S. 1509--C                         53                         A. 2009--C
 
   In the event that the director proposes to change any plan for the use
 of  unclaimed  prize  funds  or in the event the director intends to use
 funds in a game other than the game  from  which  such  unclaimed  prize
 funds  were  derived, the director of the budget, the chairperson of the
 senate  finance  committee, and the chairperson of the assembly ways and
 means committee shall be notified in writing  separately  detailing  the
 proposed changes to any plan prior to the implementation of the changes.
   § 4. This act shall take effect immediately.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or subpart of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or  subpart  thereof  directly involved in the controversy in which such
 judgment shall have been rendered. It  is  hereby  declared  to  be  the
 intent  of the legislature that this act would have been enacted even if
 such invalid provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the applicable effective date of Subparts A through D of this Part shall
 be as specifically set forth in the last section of such Subparts.
 
                                  PART EE
 
   Section  1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision
 b of section 1612 of the tax law are REPEALED and two new  subparagraphs
 (ii) and (iii) are added to read as follows:
   (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING
 AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA-
 TOR  OF  ANY  OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO
 SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE. THE AMOUNT  OF  THE
 VENDOR'S FEE SHALL BE CALCULATED AS FOLLOWS:
   (A)  WHEN  A  VENDOR  TRACK  IS LOCATED WITHIN DEVELOPMENT ZONE ONE AS
 DEFINED BY SECTION THIRTEEN  HUNDRED  TEN  OF  THE  RACING,  PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (B)  WHEN  A  VENDOR  TRACK  IS  LOCATED WITHIN ZONE TWO AS DEFINED BY
 SECTION THIRTEEN HUNDRED TEN OF THE  RACING,  PARI-MUTUEL  WAGERING  AND
 BREEDING  LAW, THE RATE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE AS FOLLOWS:
   (1) FORTY-THREE AND ONE-HALF PERCENT FOR A VENDOR TRACK  LOCATED  MORE
 THAN  FIFTEEN  MILES BUT LESS THAN FIFTY MILES FROM A DESTINATION RESORT
 GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF  THE  RACING,
 PARI-MUTUEL WAGERING AND BREEDING LAW;
   (2) FORTY-NINE PERCENT FOR A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES
 OF  A  DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE
 THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW;
   (3) FIFTY-ONE PERCENT FOR VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES
 BUT LESS THAN FIFTY MILES FROM A NATIVE AMERICAN CLASS III GAMING FACIL-
 ITY AS DEFINED IN 25 U.S.C. §2703(8);
   (4) FIFTY-SIX PERCENT FOR A VENDOR TRACK LOCATED WITHIN FIFTEEN  MILES
 OF  A  NATIVE  AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C
 §2703(8);
   (B-1) NOTWITHSTANDING SUBPARAGRAPH (B)  OF  THIS  PARAGRAPH,  FOR  THE
 PERIOD  COMMENCING  ON  APRIL FIRST, TWO THOUSAND NINETEEN AND ENDING ON
 MARCH THIRTY-FIRST, TWO THOUSAND TWENTY, FOR  A  VENDOR  TRACK  THAT  IS

 S. 1509--C                         54                         A. 2009--C
 
 LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-SEVEN AND
 ONE-HALF  PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (B-2)  NOTWITHSTANDING  SUBPARAGRAPH  (B)  OF  THIS PARAGRAPH, FOR THE
 PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN  AND  ENDING  ON
 MARCH  THIRTY-FIRST  TWO  THOUSAND  TWENTY,  FOR  A VENDOR TRACK THAT IS
 LOCATED WITHIN SARATOGA COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-NINE AND
 ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK  AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (C) WHEN A VIDEO LOTTERY FACILITY IS LOCATED AT AQUEDUCT RACETRACK, AT
 A  RATE  OF  FIFTY  PERCENT  OF  THE  TOTAL REVENUE WAGERED AT THE VIDEO
 LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO  THIS  CHAP-
 TER;
   (D)  WHEN  A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU
 OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED  PURSU-
 ANT  TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING LAW, AT A RATE OF  FORTY-FIVE  PERCENT  OF  THE  TOTAL  REVENUE
 WAGERED  AT  THE  VIDEO  LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER.
   (III) LESS ANY ADDITIONAL  VENDOR'S  FEES.  ADDITIONAL  VENDOR'S  FEES
 SHALL BE CALCULATED AS FOLLOWS:
   (A)  WHEN  A  VENDOR TRACK IS LOCATED WITHIN REGION TWO OF DEVELOPMENT
 ZONE TWO, AS SUCH ZONE IS DEFINED IN SECTION THIRTEEN HUNDRED TEN OF THE
 RACING, PARI-MUTUEL WAGERING AND BREEDING  LAW,  OR  IS  LOCATED  WITHIN
 REGION  SIX  OF  SUCH DEVELOPMENT ZONE TWO AND IS LOCATED WITHIN ONTARIO
 COUNTY, THE ADDITIONAL VENDOR FEE RECEIVED BY THE VENDOR TRACK SHALL  BE
 CALCULATED  PURSUANT TO SUBCLAUSE ONE OF THIS CLAUSE; PROVIDED, HOWEVER,
 SUCH ADDITIONAL VENDOR FEE SHALL NOT EXCEED TEN PERCENT.
   (1) THE ADDITIONAL VENDOR FEE IS A PERCENTAGE  OF  THE  TOTAL  REVENUE
 WAGERED  AT  THE  VENDOR  TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
 CHAPTER. THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE  TAX
 RATE ON ALL TAXABLE GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITH-
 IN THE SAME REGION AS THE VENDOR TRACK FROM THE PERCENTAGE THAT IS NINE-
 TY  PERCENT  LESS  THAN THE PERCENTAGE OF THE VENDOR TRACK'S VENDOR FEE.
 FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUNTIES SHALL  BE  DEEMED
 TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO.
   (2)  THE  ADDITIONAL  VENDOR  FEE  PAID  PURSUANT TO THIS CLAUSE SHALL
 COMMENCE WITH THE STATE FISCAL YEAR BEGINNING ON APRIL FIRST, TWO  THOU-
 SAND  NINETEEN  AND SHALL BE PAID TO A VENDOR TRACK NO LATER THAN NINETY
 DAYS AFTER THE CLOSE OF THE  FISCAL  YEAR.  THE  ADDITIONAL  VENDOR  FEE
 AUTHORIZED  BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT A
 VENDOR TRACK WHILE A GAMING FACILITY IN THE SAME REGION AS  THAT  VENDOR
 TRACK  IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE ISSUED
 PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING,  PARI-MU-
 TUEL WAGERING AND BREEDING LAW.
   (B)  FOR  A  VENDOR TRACK THAT IS LOCATED WITHIN ONEIDA COUNTY, WITHIN
 FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, SUCH ADDI-
 TIONAL VENDOR FEE SHALL BE SIX AND  FOUR-TENTHS  PERCENT  OF  THE  TOTAL
 REVENUE  WAGERED  AT THE VENDOR AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
 CHAPTER. THE VENDOR TRACK SHALL FORFEIT THIS ADDITIONAL VENDOR  FEE  FOR
 ANY  TIME PERIOD THAT THE VENDOR TRACK DOES NOT MAINTAIN AT LEAST NINETY
 PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN  THE  YEAR
 TWO THOUSAND SIXTEEN.
   §  1-a.  Notwithstanding section one of this part to the contrary, any
 additional commission earned on or  prior  to  March  thirty-first,  two
 thousand  nineteen pursuant to subparagraphs (ii) and (iii) of paragraph

 S. 1509--C                         55                         A. 2009--C

 1 of subdivision b of section 1612 of the tax  law  as  such  provisions
 existed  on  March thirty-first, two thousand nineteen, shall be paid to
 the vendor track no later than ninety days after the close of FY 2019.
   § 2. Subdivision b of section 1612 of the tax law is amended by adding
 three new paragraphs 1-a, 1-b, and 1-c to read as follows:
   1-A.  (I)  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, ANY
 OPERATORS OF A VENDOR TRACK OR THE OPERATORS OF ANY OTHER VIDEO  LOTTERY
 GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR-
 TY-FIRST, TWO THOUSAND EIGHTEEN SHALL DEPOSIT FROM THEIR VENDOR FEE INTO
 A  SEGREGATED  ACCOUNT  AN  AMOUNT  EQUAL  TO  FOUR PERCENT OF THE FIRST
 SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF  REVENUE  WAGERED  AT
 THE  VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE
 USED EXCLUSIVELY FOR CAPITAL INVESTMENTS,  EXCEPT  FOR  AQUEDUCT,  WHICH
 SHALL  DEPOSIT AN AMOUNT EQUAL TO FOUR PERCENT OF ALL REVENUE WAGERED AT
 THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT FOR  PRIZES  PURSUANT  TO
 THIS CHAPTER INTO A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS.
   (II)  VENDOR  TRACKS  AND  VIDEO  LOTTERY  GAMING  FACILITIES SHALL BE
 PERMITTED TO WITHDRAW FUNDS FOR PROJECTS APPROVED BY THE  COMMISSION  TO
 IMPROVE  THE  FACILITIES  OF  THE  VENDOR  TRACK OR VIDEO LOTTERY GAMING
 FACILITY WHICH ENHANCE OR MAINTAIN THE  VIDEO  LOTTERY  GAMING  FACILITY
 INCLUDING,  BUT  NOT LIMITED TO HOTELS, OTHER LODGING FACILITIES, ENTER-
 TAINMENT  FACILITIES,  RETAIL  FACILITIES,  DINING  FACILITIES,   EVENTS
 ARENAS,  PARKING  GARAGES AND OTHER IMPROVEMENTS AND AMENITIES CUSTOMARY
 TO A GAMING FACILITY, PROVIDED, HOWEVER, THE  VENDOR  TRACKS  AND  VIDEO
 LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR UNRE-
 IMBURSED  CAPITAL  AWARDS  APPROVED  PRIOR TO THE EFFECTIVE DATE OF THIS
 SUBPARAGRAPH.
   (III) ANY PROCEEDS FROM THE DIVESTITURE OF ANY ASSETS ACQUIRED THROUGH
 THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL AWARD MUST  BE  DEPOSITED  INTO
 THIS  SEGREGATED  ACCOUNT,  PROVIDED  THAT  IF THE VENDOR TRACK OR VIDEO
 LOTTERY GAMING FACILITY CEASES USE OF SUCH ASSET FOR GAMING PURPOSES  OR
 TRANSFERS  THE  ASSET  TO  A  RELATED  PARTY, SUCH VENDOR TRACK OR VIDEO
 LOTTERY GAMING FACILITY SHALL DEPOSIT AN AMOUNT EQUAL TO THE FAIR MARKET
 VALUE OF THAT ASSET INTO THE ACCOUNT.
   (IV) IN THE EVENT A VENDOR TRACK  OR  VIDEO  LOTTERY  GAMING  FACILITY
 CEASES  GAMING  OPERATIONS,  ANY  BALANCE  IN  THE ACCOUNT ALONG WITH AN
 AMOUNT EQUAL TO THE VALUE OF ALL REMAINING ASSETS ACQUIRED THROUGH  THIS
 FUND  OR PRIOR CAPITAL AWARDS SHALL BE RETURNED TO THE STATE FOR DEPOSIT
 INTO THE STATE LOTTERY FUND FOR  EDUCATION  AID,  EXCEPT  FOR  AQUEDUCT,
 WHICH  SHALL RETURN TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND
 FOR EDUCATION AID ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO  FUND  A
 PROJECT  PURSUANT  TO  AN  AGREEMENT  WITH  THE OPERATOR TO CONSTRUCT AN
 EXPANSION OF THE FACILITY, HOTEL, AND CONVENTION  AND  EXHIBITION  SPACE
 REQUIRING  A MINIMUM CAPITAL INVESTMENT OF THREE HUNDRED MILLION DOLLARS
 AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT.
   (V) THE  COMPTROLLER  OR  HIS  LEGALLY  AUTHORIZED  REPRESENTATIVE  IS
 AUTHORIZED  TO  AUDIT  ANY AND ALL EXPENDITURES MADE OUT OF THESE SEGRE-
 GATED CAPITAL ACCOUNTS.
   (VI) NOTWITHSTANDING SUBPARAGRAPHS (I) THROUGH (V) OF THIS  PARAGRAPH,
 A  VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP TO TWO MILLION
 DOLLARS FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF  COURSE
 AT THE VENDOR TRACK AND MAY WITHDRAW UP TO SIX MILLION DOLLARS IN CALEN-
 DAR YEAR TWO THOUSAND NINETEEN FOR THE PURPOSE OF COVERING ONGOING OPER-
 ATING EXPENSES.
   (VII)  NOTWITHSTANDING  SUBPARAGRAPHS  (I)  THROUGH (VI) OF THIS PARA-
 GRAPH, A VENDOR TRACK LOCATED WITHIN SARATOGA COUNTY MAY WITHDRAW UP  TO

 S. 1509--C                         56                         A. 2009--C
 
 THREE  MILLION  DOLLARS  IN  CALENDAR YEAR TWO THOUSAND NINETEEN FOR THE
 PURPOSE OF COVERING ONGOING OPERATING EXPENSES.
   (VIII)  ANY BALANCE REMAINING IN THE CAPITAL AWARD ACCOUNT OF A VENDOR
 TRACK OR OPERATOR OR ANY OTHER VIDEO LOTTERY GAMING FACILITY AS OF MARCH
 THIRTY-FIRST, TWO THOUSAND NINETEEN SHALL  BE  TRANSFERRED  FOR  DEPOSIT
 INTO A SEGREGATED ACCOUNT ESTABLISHED BY THIS SUBPARAGRAPH.
   1-B.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY
 ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO  SUBDIVISION  I
 OF  SECTION  SIXTEEN  HUNDRED  SEVENTEEN-A  OF THIS ARTICLE SHALL NOT BE
 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
 GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR  FEES
 PAYABLE  TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES PAYA-
 BLE TO THE DIVISION'S VIDEO LOTTERY  GAMING  EQUIPMENT  CONTRACTORS,  OR
 RACING SUPPORT PAYMENTS.
   1-C.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERA-
 TOR OF A VENDOR TRACK OR THE OPERATOR OF ANY OTHER VIDEO LOTTERY  GAMING
 FACILITY  SHALL  FUND  A  MARKETING  AND  PROMOTION  PROGRAM  OUT OF THE
 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL  MARKETING  PLAN  FOR
 THE  REVIEW  AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU-
 MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE  COMMISSION.
 THE  COMMISSION  SHALL  HAVE  THE  RIGHT  TO REJECT ANY ADVERTISEMENT OR
 PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR  INTERESTS  OF
 THE LOTTERY OR ITS PROGRAMS.
   § 3. This act shall take effect immediately; provided, however, clause
 (B)  of  subparagraph  (iii)  of paragraph 1 of subdivision b of section
 1612 of the tax law as added by section  one  of  this  act  shall  take
 effect  June  30, 2019 and shall expire and be deemed repealed March 31,
 2023.
 
                                  PART FF
 
   Section 1. Subdivision 25 of section 1301 of the  racing,  pari-mutuel
 wagering  and breeding law, as added by chapter 174 of the laws of 2013,
 is amended to read as follows:
   25. "Gross gaming revenue". The total of all sums actually received by
 a gaming facility licensee from gaming operations less the total of  all
 sums  paid out as winnings to patrons; provided, however, that the total
 of all sums paid out as winnings to patrons shall not include  the  cash
 equivalent  value  of  any  merchandise  or thing of value included in a
 jackpot or payout[; provided further, that the issuance to  or  wagering
 by  patrons  of a gaming facility of any promotional gaming credit shall
 not be taxable for the purposes of determining gross revenue].
   § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 2 to read as follows:
   2. PERMISSIBLE DEDUCTIONS. (A) A GAMING FACILITY MAY DEDUCT FROM GROSS
 GAMING REVENUE THE AMOUNT OF APPROVED PROMOTIONAL GAMING CREDITS  ISSUED
 TO  AND  WAGERED  BY  PATRONS  OF  SUCH  GAMING  FACILITY. THE AMOUNT OF
 APPROVED PROMOTIONAL CREDITS SHALL BE CALCULATED AS FOLLOWS:
   (1) FOR THE PERIOD COMMENCING ON APRIL FIRST,  TWO  THOUSAND  EIGHTEEN
 AND  ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, AN AGGREGATE
 MAXIMUM AMOUNT EQUAL TO NINETEEN  PERCENT  OF  THE  BASE  TAXABLE  GROSS
 GAMING REVENUE AMOUNT DURING THE SPECIFIED PERIOD;
   (2)  FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY-ONE
 AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-THREE,  A  MAXIMUM
 AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVEN-
 UE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD; AND

 S. 1509--C                         57                         A. 2009--C
 
   (3)  FOR  THE  PERIOD  COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY-
 THREE AND THEREAFTER, A MAXIMUM AMOUNT EQUAL TO FIFTEEN PERCENT  OF  THE
 BASE TAXABLE GROSS GAMING REVENUE AMOUNT FOR EACH FISCAL YEAR DURING THE
 SPECIFIED PERIOD.
   (B)  FOR  PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, "BASE TAXABLE
 GROSS GAMING REVENUE AMOUNT" MEANS THAT PORTION OF GROSS GAMING  REVENUE
 NOT ATTRIBUTABLE TO DEDUCTIBLE PROMOTIONAL CREDIT.
   (C) ANY TAX DUE ON PROMOTIONAL CREDITS DEDUCTED DURING THE FISCAL YEAR
 IN  EXCESS  OF  THE ALLOWABLE DEDUCTION SHALL BE PAID WITHIN THIRTY DAYS
 FROM THE END OF THE FISCAL YEAR.
   (D) ONLY PROMOTIONAL CREDITS THAT ARE ISSUED  PURSUANT  TO  A  WRITTEN
 PLAN  APPROVED  BY THE COMMISSION AS DESIGNED TO INCREASE REVENUE AT THE
 FACILITY MAY BE ELIGIBLE FOR SUCH DEDUCTION. THE COMMISSION, IN CONJUNC-
 TION WITH THE DIRECTOR OF THE BUDGET, MAY SUSPEND APPROVAL OF  ANY  PLAN
 WHENEVER  THEY JOINTLY DETERMINE THAT THE USE OF THE PROMOTIONAL CREDITS
 UNDER SUCH PLAN IS NOT EFFECTIVE IN INCREASING  THE  AMOUNT  OF  REVENUE
 EARNED.
   § 3. This act shall take effect immediately.
 
                                  PART GG
 
   Section  1.  Subdivision  12 of section 502 of the racing, pari-mutuel
 wagering and breeding law is amended to read as follows:
   12. A. The board of directors shall hold an annual  meeting  AND  MEET
 NOT LESS THAN QUARTERLY.
   B.  EACH  BOARD  MEMBER  SHALL  RECEIVE,  NOT  LESS THAN SEVEN DAYS IN
 ADVANCE OF A MEETING, DOCUMENTATION NECESSARY  TO  ENSURE  KNOWLEDGEABLE
 AND  ENGAGED  PARTICIPATION.  SUCH  DOCUMENTATION SHALL INCLUDE MATERIAL
 RELEVANT  TO  EACH  AGENDA  ITEM  INCLUDING  BACKGROUND  INFORMATION  OF
 DISCUSSION ITEMS, RESOLUTIONS TO BE CONSIDERED AND ASSOCIATED DOCUMENTS,
 A  MONTHLY  FINANCIAL STATEMENT WHICH SHALL INCLUDE AN UPDATED CASH FLOW
 STATEMENT AND AGED  PAYABLE  LISTING  OF  INDUSTRY  PAYABLES,  FINANCIAL
 STATEMENTS, MANAGEMENT REPORTS, COMMITTEE REPORTS AND COMPLIANCE ITEMS.
   C.  STAFF  OF  THE  CORPORATION SHALL ANNUALLY SUBMIT TO THE BOARD FOR
 APPROVAL A FINANCIAL PLAN ACCOMPANIED BY EXPENDITURE, REVENUE  AND  CASH
 FLOW  PROJECTIONS.  THE  PLAN  SHALL  CONTAIN PROJECTION OF REVENUES AND
 EXPENDITURES BASED ON REASONABLE AND APPROPRIATE ASSUMPTIONS AND METHODS
 OF ESTIMATIONS, AND SHALL PROVIDE  THAT  OPERATIONS  WILL  BE  CONDUCTED
 WITHIN  THE  CASH  RESOURCES  AVAILABLE.  THE  FINANCIAL PLAN SHALL ALSO
 INCLUDE INFORMATION REGARDING PROJECTED  EMPLOYMENT  LEVELS,  COLLECTIVE
 BARGAINING  AGREEMENTS  AND  OTHER  ACTIONS  RELATING TO EMPLOYEE COSTS,
 CAPITAL CONSTRUCTION AND SUCH OTHER MATTERS AS THE BOARD MAY DIRECT.
   D. STAFF OF THE CORPORATION SHALL PREPARE AND SUBMIT TO THE BOARD ON A
 QUARTERLY BASIS A REPORT OF SUMMARIZED  BUDGET  DATA  DEPICTING  OVERALL
 TRENDS,  BY  MAJOR  CATEGORY WITHIN FUNDS, OF ACTUAL REVENUES AND BUDGET
 EXPENDITURES FOR THE ENTIRE BUDGET RATHER THAN INDIVIDUAL LINE ITEMS, AS
 WELL  AS  UPDATED  QUARTERLY  CASH  FLOW  PROJECTIONS  OF  RECEIPTS  AND
 DISBURSEMENTS.  SUCH  REPORTS SHALL COMPARE REVENUE ESTIMATES AND APPRO-
 PRIATIONS AS SET FORTH IN SUCH BUDGET AND IN THE QUARTERLY  REVENUE  AND
 EXPENDITURE  PROJECTIONS  SUBMITTED  THEREWITH, WITH THE ACTUAL REVENUES
 AND EXPENDITURES MADE TO DATE. SUCH REPORTS SHALL  ALSO  COMPARE  ACTUAL
 RECEIPTS AND DISBURSEMENTS WITH THE ESTIMATES CONTAINED IN THE CASH FLOW
 PROJECTIONS, TOGETHER WITH VARIANCES AND THEIR EXPLANATION. ALL QUARTER-
 LY  REPORTS  SHALL  BE ACCOMPANIED BY RECOMMENDATIONS FROM THE PRESIDENT
 SETTING FORTH ANY REMEDIAL ACTION NECESSARY TO RESOLVE  ANY  UNFAVORABLE
 BUDGET  VARIANCE INCLUDING THE OVERESTIMATION OF REVENUES AND THE UNDER-

 S. 1509--C                         58                         A. 2009--C
 
 ESTIMATION OF APPROPRIATIONS. THESE REPORTS SHALL  BE  COMPLETED  WITHIN
 THIRTY  DAYS AFTER THE END OF EACH QUARTER AND SHALL BE SUBMITTED TO THE
 BOARD BY THE CORPORATION COMPTROLLER.
   E. REVENUE ESTIMATES AND THE FINANCIAL PLAN SHALL BE REGULARLY REEXAM-
 INED  BY THE BOARD AND STAFF AND SHALL PROVIDE A MODIFIED FINANCIAL PLAN
 IN SUCH DETAIL AND WITHIN SUCH TIME PERIODS AS THE BOARD MAY REQUIRE. IN
 THE EVENT OF REDUCTIONS IN  SUCH  REVENUE  ESTIMATES,  THE  BOARD  SHALL
 CONSIDER   AND   APPROVE  SUCH  ADJUSTMENTS  IN  REVENUE  ESTIMATES  AND
 REDUCTIONS IN TOTAL EXPENDITURES AS MAY BE NECESSARY TO CONFORM TO  SUCH
 REVISED REVENUE ESTIMATES OR AGGREGATE EXPENDITURE LIMITATIONS.
   § 2. Subdivision 2-a of section 1009 of the racing, pari-mutuel wager-
 ing  and  breeding law, is amended by adding a new paragraph (c) to read
 as follows:
   (C) THE BOARD MAY AUTHORIZE A  SPECIAL  DEMONSTRATION  PROJECT  TO  BE
 LOCATED  IN  ANY  FACILITY LICENSED PURSUANT TO ARTICLE THIRTEEN OF THIS
 CHAPTER IN SCHENECTADY COUNTY. NOTWITHSTANDING THE PROVISIONS  OF  PARA-
 GRAPH  A OF SUBDIVISION FIVE OF THIS SECTION, AN ADMISSION FEE SHALL NOT
 BE REQUIRED FOR A DEMONSTRATION PROJECT AUTHORIZED  IN  THIS  PARAGRAPH.
 PROVIDED  HOWEVER,  ON  ANY DAY WHEN A REGIONAL HARNESS TRACK CONDUCTS A
 LIVE RACE MEETING, A DEMONSTRATION FACILITY  WITHIN  THAT  REGION  SHALL
 PREDOMINANTLY DISPLAY THE LIVE VIDEO OF SUCH REGIONAL HARNESS TRACK.
   § 3. This act shall take effect immediately.
 
                                  PART HH
 
   Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  1
 of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
 follows:
   (a) Any  racing  association  or  corporation  or  regional  off-track
 betting  corporation,  authorized  to conduct pari-mutuel wagering under
 this chapter, desiring to display the simulcast of horse races on  which
 pari-mutuel  betting shall be permitted in the manner and subject to the
 conditions provided for in this article may apply to the commission  for
 a  license  so to do. Applications for licenses shall be in such form as
 may be prescribed by the commission and shall contain  such  information
 or  other material or evidence as the commission may require. No license
 shall be issued by the commission authorizing the simulcast transmission
 of thoroughbred races from a track located in Suffolk  county.  The  fee
 for  such  licenses shall be five hundred dollars per simulcast facility
 and for account wagering licensees that do not operate either  a  simul-
 cast facility that is open to the public within the state of New York or
 a  licensed racetrack within the state, twenty thousand dollars per year
 payable by the licensee to the commission for deposit into  the  general
 fund.  Except  as  provided  in  this  section, the commission shall not
 approve any application to conduct simulcasting into individual or group
 residences, homes or other areas for the purposes of  or  in  connection
 with  pari-mutuel wagering. The commission may approve simulcasting into
 residences, homes or other areas to be conducted jointly by one or  more
 regional  off-track  betting corporations and one or more of the follow-
 ing: a franchised corporation,  thoroughbred  racing  corporation  or  a
 harness racing corporation or association; provided (i) the simulcasting
 consists  only of those races on which pari-mutuel betting is authorized
 by this chapter at one or more simulcast  facilities  for  each  of  the
 contracting  off-track  betting  corporations which shall include wagers
 made in accordance with  section  one  thousand  fifteen,  one  thousand

 S. 1509--C                         59                         A. 2009--C
 
 sixteen  and  one  thousand  seventeen of this article; provided further
 that the contract provisions or other simulcast  arrangements  for  such
 simulcast  facility  shall  be no less favorable than those in effect on
 January  first,  two  thousand  five;  (ii)  that each off-track betting
 corporation having within its  geographic  boundaries  such  residences,
 homes  or  other  areas  technically  capable of receiving the simulcast
 signal shall be a contracting party; (iii) the distribution of  revenues
 shall  be  subject  to  contractual agreement of the parties except that
 statutory payments to  non-contracting  parties,  if  any,  may  not  be
 reduced;  provided,  however,  that nothing herein to the contrary shall
 prevent a track from televising its races on an irregular basis primari-
 ly for promotional or marketing purposes as found by the commission. For
 purposes of this paragraph, the provisions of section one thousand thir-
 teen of this article shall  not  apply.  Any  agreement  authorizing  an
 in-home simulcasting experiment commencing prior to May fifteenth, nine-
 teen hundred ninety-five, may, and all its terms, be extended until June
 thirtieth,  two  thousand [nineteen] TWENTY; provided, however, that any
 party to such agreement may  elect  to  terminate  such  agreement  upon
 conveying written notice to all other parties of such agreement at least
 forty-five  days  prior  to  the  effective date of the termination, via
 registered mail. Any party to an agreement receiving such notice  of  an
 intent  to  terminate, may request the commission to mediate between the
 parties new terms and conditions in a replacement agreement between  the
 parties  as will permit continuation of an in-home experiment until June
 thirtieth, two thousand [nineteen] TWENTY; and (iv)  no  in-home  simul-
 casting in the thoroughbred special betting district shall occur without
 the approval of the regional thoroughbred track.
   §  2.  Subparagraph  (iii)  of paragraph d of subdivision 3 of section
 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
 section 2 of part GG of chapter 59 of the laws of 2018,  is  amended  to
 read as follows:
   (iii) Of the sums retained by a receiving track located in Westchester
 county  on  races received from a franchised corporation, for the period
 commencing January first, two thousand eight and continuing through June
 thirtieth, two thousand [nineteen] TWENTY, the amount  used  exclusively
 for  purses  to  be  awarded  at races conducted by such receiving track
 shall be computed as follows: of the sums so retained, two and  one-half
 percent  of the total pools. Such amount shall be increased or decreased
 in the amount of fifty percent of the difference  in  total  commissions
 determined by comparing the total commissions available after July twen-
 ty-first,  nineteen  hundred  ninety-five  to the total commissions that
 would have been available to such  track  prior  to  July  twenty-first,
 nineteen hundred ninety-five.
   §  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  3
 of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
 follows:
   The provisions of this section shall govern the simulcasting of  races
 conducted  at thoroughbred tracks located in another state or country on
 any day during which a franchised corporation is conducting a race meet-
 ing in Saratoga county at Saratoga  thoroughbred  racetrack  until  June
 thirtieth,  two  thousand [nineteen] TWENTY and on any day regardless of
 whether or not a franchised corporation is conducting a race meeting  in
 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
 two  thousand [nineteen] TWENTY. On any day on which a franchised corpo-
 ration has not scheduled a racing  program  but  a  thoroughbred  racing

 S. 1509--C                         60                         A. 2009--C
 
 corporation  located  within  the state is conducting racing, every off-
 track betting corporation branch office and every simulcasting  facility
 licensed  in accordance with section one thousand seven (that [have] HAS
 entered  into  a  written  agreement with such facility's representative
 horsemen's organization, as approved by the  commission),  one  thousand
 eight,  or  one  thousand  nine  of  this article shall be authorized to
 accept wagers and display the live simulcast  signal  from  thoroughbred
 tracks  located  in  another  state  or  foreign  country subject to the
 following provisions:
   § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
 and breeding law, as amended by section 4 of part GG of  chapter  59  of
 the laws of 2018, is amended to read as follows:
   1.  The  provisions  of  this section shall govern the simulcasting of
 races conducted at harness tracks located in another  state  or  country
 during  the period July first, nineteen hundred ninety-four through June
 thirtieth, two thousand [nineteen] TWENTY. This section shall  supersede
 all inconsistent provisions of this chapter.
   §  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  5
 of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
 follows:
   The provisions of this section shall govern the simulcasting of  races
 conducted  at thoroughbred tracks located in another state or country on
 any day during which a franchised corporation is not conducting  a  race
 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
 thirtieth,  two  thousand  [nineteen]  TWENTY.  Every  off-track betting
 corporation branch office and every simulcasting  facility  licensed  in
 accordance  with  section  one  thousand  seven that have entered into a
 written agreement with such facility's representative horsemen's  organ-
 ization  as  approved by the commission, one thousand eight or one thou-
 sand nine of this article shall  be  authorized  to  accept  wagers  and
 display  the  live  full-card  simulcast  signal  of thoroughbred tracks
 (which may include quarter horse or mixed  meetings  provided  that  all
 such wagering on such races shall be construed to be thoroughbred races)
 located  in  another  state or foreign country, subject to the following
 provisions; provided,  however,  no  such  written  agreement  shall  be
 required of a franchised corporation licensed in accordance with section
 one thousand seven of this article:
   §  6. The opening paragraph of section 1018 of the racing, pari-mutuel
 wagering and breeding law, as amended by section 6 of part GG of chapter
 59 of the laws of 2018, is amended to read as follows:
   Notwithstanding any other provision of this chapter,  for  the  period
 July  twenty-fifth, two thousand one through September eighth, two thou-
 sand [eighteen] NINETEEN, when a franchised corporation is conducting  a
 race  meeting  within the state at Saratoga Race Course, every off-track
 betting  corporation  branch  office  and  every  simulcasting  facility
 licensed in accordance with section one thousand seven (that has entered
 into  a written agreement with such facility's representative horsemen's
 organization as approved by the commission), one thousand eight  or  one
 thousand  nine  of this article shall be authorized to accept wagers and
 display the live simulcast signal from thoroughbred  tracks  located  in
 another  state, provided that such facility shall accept wagers on races
 run at all in-state thoroughbred  tracks  which  are  conducting  racing
 programs subject to the following provisions; provided, however, no such
 written agreement shall be required of a franchised corporation licensed
 in accordance with section one thousand seven of this article.

 S. 1509--C                         61                         A. 2009--C
 
   §  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
 racing, pari-mutuel wagering and breeding law and other laws relating to
 simulcasting, as amended by section 7 of part GG of chapter  59  of  the
 laws of 2018, is amended to read as follows:
   §  32.  This act shall take effect immediately and the pari-mutuel tax
 reductions in section six  of  this  act  shall  expire  and  be  deemed
 repealed  on  July  1,  [2019]  2020;  provided,  however,  that nothing
 contained herein shall be deemed to affect the  application,  qualifica-
 tion,  expiration,  or  repeal  of  any  provision of law amended by any
 section of this act, and such provisions shall be applied  or  qualified
 or  shall  expire  or be deemed repealed in the same manner, to the same
 extent and on the same date as the case may be as otherwise provided  by
 law;  provided  further, however, that sections twenty-three and twenty-
 five of this act shall remain in full force and effect only until May 1,
 1997 and at such time shall be deemed to be repealed.
   § 8. Section 54 of chapter 346 of  the  laws  of  1990,  amending  the
 racing, pari-mutuel wagering and breeding law and other laws relating to
 simulcasting  and the imposition of certain taxes, as amended by section
 8 of part GG of chapter 59 of the laws of 2018, is amended  to  read  as
 follows:
   §  54.  This  act  shall  take  effect immediately; provided, however,
 sections three through twelve of this act shall take effect  on  January
 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
 ing  law, as added by section thirty-eight of this act, shall expire and
 be deemed repealed on July 1, [2019] 2020; and section eighteen of  this
 act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
 two of this act shall take effect as of the same date as chapter 772  of
 the laws of 1989 took effect.
   §  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
 pari-mutuel wagering and breeding law, as amended by section 9  of  part
 GG of chapter 59 of the laws of 2018, is amended to read as follows:
   (a)  The  franchised  corporation  authorized  under  this  chapter to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute all sums deposited in any pari-mutuel pool to the holders  of
 winning  tickets therein, provided such tickets be presented for payment
 before April first of the year following the  year  of  their  purchase,
 less  an  amount  which  shall be established and retained by such fran-
 chised corporation of between twelve to  seventeen  per  centum  of  the
 total  deposits in pools resulting from on-track regular bets, and four-
 teen to twenty-one per centum of the total deposits in  pools  resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total  deposits in pools resulting from on-track exotic bets and fifteen
 to thirty-six per centum of the total deposits in pools  resulting  from
 on-track  super  exotic  bets, plus the breaks. The retention rate to be
 established is subject to the prior approval of the gaming commission.
   Such rate may not be changed more than once per calendar quarter to be
 effective on the first day of the calendar quarter.  "Exotic  bets"  and
 "multiple  bets"  shall  have  the  meanings  set  forth in section five
 hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
 meaning  set  forth  in  section  three hundred one of this chapter. For
 purposes of this section, a "pick six bet" shall mean a  single  bet  or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five

 S. 1509--C                         62                         A. 2009--C
 
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
 retained there shall be paid  by  such  franchised  corporation  to  the
 commissioner  of  taxation and finance, as a reasonable tax by the state
 for the privilege of conducting pari-mutuel betting on the races run  at
 the  race  meetings  held  by such franchised corporation, the following
 percentages of the total pool for regular and  multiple  bets  five  per
 centum  of regular bets and four per centum of multiple bets plus twenty
 per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
 centum  plus  twenty per centum of the breaks, and for super exotic bets
 seven and one-half per centum plus fifty per centum of the breaks.
   For the  period  June  first,  nineteen  hundred  ninety-five  through
 September  ninth,  nineteen  hundred  ninety-nine,  such  tax on regular
 wagers shall be three per centum and such tax on multiple  wagers  shall
 be  two  and  one-half per centum, plus twenty per centum of the breaks.
 For the period September tenth,  nineteen  hundred  ninety-nine  through
 March  thirty-first,  two  thousand one, such tax on all wagers shall be
 two and six-tenths per centum and for the period April first, two  thou-
 sand  one through December thirty-first, two thousand [nineteen] TWENTY,
 such tax on all wagers shall be one and six-tenths per centum, plus,  in
 each  such  period,  twenty per centum of the breaks. Payment to the New
 York state thoroughbred breeding and development fund by such franchised
 corporation shall be one-half of one per centum of total daily  on-track
 pari-mutuel  pools  resulting from regular, multiple and exotic bets and
 three per centum of super exotic bets provided, however,  that  for  the
 period September tenth, nineteen hundred ninety-nine through March thir-
 ty-first,  two thousand one, such payment shall be six-tenths of one per
 centum of regular, multiple and exotic pools and for  the  period  April
 first,  two  thousand  one  through  December thirty-first, two thousand
 [nineteen] TWENTY, such payment shall be seven-tenths of one per  centum
 of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART II
 
                           Intentionally Omitted
 
                                  PART JJ
 
   Section  1.  Section  2  of part EE of chapter 59 of the laws of 2018,
 amending the racing, pari-mutuel wagering and breeding law, relating  to
 adjusting  the  franchise  payment establishing an advisory committee to
 review the structure, operations and funding of equine drug testing  and
 research, is amended to read as follows:
   §  2.  An  advisory committee shall be established within the New York
 gaming commission comprised of individuals with demonstrated interest in
 the performance of thoroughbred and standardbred race horses  to  review
 the present structure, operations and funding of equine drug testing and
 research  conducted  pursuant to article nine of the racing, pari-mutuel
 wagering and breeding law.  Members  of  the  committee,  who  shall  be
 appointed  by the governor, shall include but not be limited to a desig-
 nee at the recommendation of each licensed  or  franchised  thoroughbred
 and  standardbred  racetrack,  a  designee at the recommendation of each
 operating regional off-track betting  corporation,  a  designee  at  the
 recommendation of each recognized horsemen's organization at licensed or
 franchised  thoroughbred  and standardbred racetracks, a designee at the

 S. 1509--C                         63                         A. 2009--C
 
 recommendation of both Morrisville State College and the Cornell Univer-
 sity School of Veterinary Medicine, and two designees each at the recom-
 mendation of the speaker of the assembly and temporary president of  the
 senate.  The  governor  shall designate the chair from among the members
 who shall serve as such at the pleasure of the governor. State  agencies
 shall  cooperate with and assist the committee in the fulfillment of its
 duties and may  render  informational,  non-personnel  services  to  the
 committee within their respective functions as the committee may reason-
 ably request. Recommendations shall be delivered to the temporary presi-
 dent  of the senate, speaker of the assembly and governor by December 1,
 [2018] 2019 regarding the future of such research, testing and  funding.
 Members of the board shall not be considered policymakers.
   §  2. Subdivision 1 of section 902 of the racing, pari-mutuel wagering
 and breeding law, as amended by chapter 15  of  the  laws  of  2010,  is
 amended to read as follows:
   1.  In  order  to assure the public's confidence and continue the high
 degree of integrity in racing at the pari-mutuel betting tracks,  equine
 drug  testing  at race meetings shall be conducted by a state college OR
 AT A LAND GRANT UNIVERSITY within this state [with  an  approved  equine
 science  program].  The [state racing and wagering board] GAMING COMMIS-
 SION shall promulgate any rules and regulations necessary  to  implement
 the  provisions  of  this section, including administrative penalties of
 loss of purse money, fines, or denial, suspension[,] or revocation of  a
 license for racing drugged horses.
   § 3. This act shall take effect immediately.
 
                                  PART KK

                           Intentionally Omitted
 
                                  PART LL
 
   Section  1.  Subparagraph  (i)  of  paragraph  (a) of subdivision 2 of
 section 1306-a of the real property tax law, as amended by section 6  of
 part N of chapter 58 of the laws of 2011, is amended to read as follows:
   (i) The tax savings for each parcel receiving the exemption authorized
 by section four hundred twenty-five of this chapter shall be computed by
 subtracting  the  amount  actually  levied  against  the parcel from the
 amount that would have been levied if not for  the  exemption,  provided
 however,  that [beginning with] FOR the two thousand eleven-two thousand
 twelve THROUGH TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN school [year]
 YEARS, the tax savings applicable to any "portion" (which as used herein
 shall mean that part of  an  assessing  unit  located  within  a  school
 district) shall not exceed the tax savings applicable to that portion in
 the  prior  school  year multiplied by one hundred two percent, with the
 result rounded to the nearest dollar; AND PROVIDED FURTHER  THAT  BEGIN-
 NING WITH THE TWO THOUSAND NINETEEN-TWO THOUSAND TWENTY SCHOOL YEAR: (A)
 FOR  PURPOSES  OF THE EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWEN-
 TY-FIVE OF THIS CHAPTER, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL
 NOT EXCEED THE TAX SAVINGS FOR THE PRIOR YEAR, AND (B) FOR  PURPOSES  OF
 THE  CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF
 THE TAX LAW, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT  EXCEED
 THE  TAX  SAVINGS  APPLICABLE  TO  THAT PORTION IN THE PRIOR SCHOOL YEAR
 MULTIPLIED BY ONE HUNDRED TWO PERCENT, WITH THE RESULT  ROUNDED  TO  THE
 NEAREST  DOLLAR.  The tax savings attributable to the basic and enhanced
 exemptions shall be calculated separately. It shall be the  responsibil-

 S. 1509--C                         64                         A. 2009--C
 
 ity  of  the  commissioner  to  calculate  tax  savings  limitations for
 purposes of this subdivision.
   §  2.  Subparagraph  (G) of paragraph 1 of subsection (eee) of section
 606 of the tax law, as amended by section 8 of part A of chapter  73  of
 the laws of 2016, is amended to read as follows:
   (G)  "STAR tax savings" means the tax savings attributable to the STAR
 exemption within a portion of a school district, as  determined  by  the
 commissioner  pursuant  to  subdivision  two of section thirteen hundred
 six-a of the real property tax law FOR PURPOSES OF THE CREDIT AUTHORIZED
 BY THIS SUBSECTION.
   § 3. This act shall take effect immediately.
 
                                  PART MM
 
   Section 1. Section 1405-B of the tax law is amended by  adding  a  new
 subdivision (c) to read as follows:
   (C)  THE  INFORMATION CONTAINED WITHIN INFORMATION RETURNS FILED UNDER
 SUBDIVISION (B) OF THIS SECTION MAY BE PROVIDED BY THE  COMMISSIONER  TO
 LOCAL  ASSESSORS  FOR  USE IN REAL PROPERTY TAX ADMINISTRATION, AND SUCH
 INFORMATION SHALL NOT BE SUBJECT TO THE SECRECY PROVISIONS SET FORTH  IN
 SECTION  FOURTEEN  HUNDRED  EIGHTEEN OF THIS CHAPTER, PROVIDED, HOWEVER,
 THAT THE COMMISSIONER SHALL NOT  DISCLOSE  SOCIAL  SECURITY  NUMBERS  OR
 EMPLOYER IDENTIFICATION NUMBERS.
   § 2. This act shall take effect January 1, 2020.
 
                                  PART NN
 
   Section  1.  Paragraph 3 of subsection (e-1) of section 606 of the tax
 law, as added by section 2 of part K of chapter 59 of the laws of  2014,
 is amended as follows:
   (3)  Determination  of  credit.  For  taxable years after two thousand
 thirteen [and prior to two thousand sixteen], the amount of  the  credit
 allowable under this subsection shall be determined as follows:
 If household gross income    Excess real property    The credit amount is
 for the taxable year is:     taxes are the excess    the following
                              of real property tax    percentage of excess
                              equivalent or the       property taxes:
                              excess of qualifying
                              real property taxes
                              over the following
                              percentage of
                              household gross
                              income:
 Less than $100,000                   4                    4.5
 $100,000 to less than                5                    3.0
 $150,000
 $150,000 to less than                6                    1.5
 $200,000
   Notwithstanding  the  foregoing  provisions, the maximum credit deter-
 mined under this subparagraph may not exceed five hundred dollars.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2016;  provided,  however,  that
 the amendments to subsection (e-1) of section 606 of the tax law made by
 section  one  of this act shall not affect the repeal of such subsection
 and shall be deemed to be repealed therewith.

 S. 1509--C                         65                         A. 2009--C
 
                                  PART OO
 
   Section  1.  Subdivision v of section 233 of the real property law, as
 amended by chapter 566 of the laws  of  1996,  is  amended  to  read  as
 follows:
   v.  1.  On  and  after  April first, nineteen hundred eighty-nine, the
 commissioner of housing and community renewal shall have the  power  and
 duty  to  enforce  and  ensure  compliance  with  the provisions of this
 section. However, the commissioner shall not have the power or  duty  to
 enforce  manufactured  home park rules and regulations established under
 subdivision f of this section.
   2. On or before January  first,  nineteen  hundred  eighty-nine,  each
 manufactured  home  park  owner  or  operator  shall file a registration
 statement with the commissioner and  shall  thereafter  file  an  annual
 registration  statement  on  or  before January first of each succeeding
 year. The commissioner, by regulation, shall provide that such registra-
 tion statement shall include only the names of  all  persons  owning  an
 interest in the park, the names of all tenants of the park, all services
 provided  by  the  park  owner  to the tenants and a copy of all current
 manufactured home park rules and  regulations.  THE  REPORTING  OF  SUCH
 INFORMATION  TO  THE  COMMISSIONER  OF  TAXATION AND FINANCE PURSUANT TO
 SUBPARAGRAPH (B) OF PARAGRAPH SIX OF SUBSECTION  (EEE)  OF  SECTION  SIX
 HUNDRED  SIX  OF THE TAX LAW SHALL BE DEEMED TO SATISFY THE REQUIREMENTS
 OF THIS PARAGRAPH.  THAT THE COMMISSIONER MAY NOT BE THE PRIMARY RECIPI-
 ENT OF SUCH REGISTRATION STATEMENT SHALL  NOT  BE  CONSTRUED  TO  LIMIT,
 ALTER OR DIMINISH THE ABILITY OR RESPONSIBILITY OF THE DIVISION OF HOUS-
 ING  AND  COMMUNITY RENEWAL IN REGARDS TO ENFORCEMENT OF THIS SECTION OR
 ANY OTHER APPLICABLE LAWS. THE COMMISSIONER MAY  REQUEST  ADDITIONAL  OR
 CORRECTED  INFORMATION  TO BE FILED BY EACH MANUFACTURED HOME PARK OWNER
 OR OPERATOR AS HE OR SHE DEEMS NECESSARY TO CARRY OUT  PROPER  OVERSIGHT
 OF  SUCH  MANUFACTURED  HOME PARKS. THE COMMISSIONER SHALL ANNUALLY MAKE
 PUBLICLY AVAILABLE ON ITS WEBSITE A REPORT OF THE DATA COLLECTED  PURSU-
 ANT  TO  THIS  SUBDIVISION  OR  SUBPARAGRAPH  (B)  OF  PARAGRAPH  SIX OF
 SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, NOT  INCLUD-
 ING ANY PERSONALLY IDENTIFIABLE INFORMATION.
   3. Whenever there shall be a violation of this section, an application
 may  be made by the commissioner of housing and community renewal in the
 name of the people of the state of New York to a court or justice having
 jurisdiction by a special proceeding to issue an  injunction,  and  upon
 notice  to  the  defendant  of  not  less  than five days, to enjoin and
 restrain the continuance of such violation; and if it  shall  appear  to
 the  satisfaction  of  the  court  or justice that the defendant has, in
 fact, violated this section, an injunction may be issued by  such  court
 or  justice,  enjoining  and  restraining any further violation and with
 respect to this subdivision, directing  the  filing  of  a  registration
 statement.  In any such proceeding, the court may make allowances to the
 commissioner of housing and community renewal of a sum not exceeding two
 thousand dollars against each defendant, and direct restitution.   When-
 ever  the  court  shall  determine  that a violation of this section has
 occurred, the court may impose a civil penalty  of  not  more  than  one
 thousand  five hundred dollars for each violation. Such penalty shall be
 deposited in the manufactured home cooperative fund, created pursuant to
 section fifty-nine-h of the private housing finance law.  In  connection
 with  any  such  proposed  application,  the commissioner of housing and
 community renewal is authorized to take proof and make  a  determination
 of  the  relevant  facts  and  to issue subpoenas in accordance with the

 S. 1509--C                         66                         A. 2009--C
 
 civil practice law and rules. The provisions of this  subdivision  shall
 not impair the rights granted under subdivision u of this section.
   §  2.  Subparagraph  (B) of paragraph 6 of subsection (eee) of section
 606 of the tax law, as amended by section 8 of part A of chapter  73  of
 the laws of 2016, is amended to read as follows:
   (B)  (I)  In  the case of property consisting of a mobile home that is
 described in paragraph (1) of subdivision two of  section  four  hundred
 twenty-five  of  the  real  property  tax  law, the amount of the credit
 allowable with respect to such mobile home shall be equal to  the  basic
 STAR  tax  savings for the school district portion, or the enhanced STAR
 tax savings for the school district portion,  whichever  is  applicable,
 that  would  be  applied  to  a separately assessed parcel in the school
 district portion with a taxable assessed value equal to twenty  thousand
 dollars  multiplied  by  the  latest  state equalization rate or special
 equalization rate for the assessing unit in which  the  mobile  home  is
 located. Provided, however, that if the commissioner is in possession of
 information,  including  but  not  limited  to  assessment records, that
 demonstrates to the  commissioner's  satisfaction  that  the  taxpayer's
 mobile  home  is  worth  more  than  twenty  thousand dollars, or if the
 taxpayer provides the commissioner with such information, the taxpayer's
 credit shall be increased accordingly, but in no case shall  the  credit
 exceed the basic STAR tax savings or enhanced STAR tax savings, whichev-
 er is applicable, for the school district portion.
   (II)  THE  COMMISSIONER  MAY  IMPLEMENT  AN  ELECTRONIC SYSTEM FOR THE
 REPORTING OF INFORMATION BY OWNERS AND OPERATORS  OF  MANUFACTURED  HOME
 PARKS,  AS DEFINED BY SECTION TWO HUNDRED THIRTY-THREE OF THE REAL PROP-
 ERTY LAW. UPON THE IMPLEMENTATION OF SUCH A SYSTEM, EACH SUCH OWNER  AND
 OPERATOR  SHALL FILE ELECTRONIC STATEMENTS WITH THE COMMISSIONER ACCORD-
 ING TO A SCHEDULE TO BE DETERMINED BY THE COMMISSIONER.  SUCH  STATEMENT
 SHALL  REQUIRE  REPORTING  OF NAMES OF ALL PERSONS OWNING AN INTEREST IN
 THE PARK, THE SERVICES PROVIDED BY THE PARK OWNER TO  THE  TENANTS,  THE
 NAME  OF  THE  AGENT DESIGNATED PURSUANT TO SUBDIVISION L OF SECTION TWO
 HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW, THE NAMES  AND  ADDRESSES
 OF  ALL TENANTS OF THE PARK, WHETHER THE TENANT LEASES OR OWNS THE HOME,
 THE RENT SET FOR EACH LOT IN THE PARK, AND SUCH  ADDITIONAL  INFORMATION
 AS  THE COMMISSIONER MAY DEEM NECESSARY FOR THE PROPER ADMINISTRATION OF
 THE STAR EXEMPTION ESTABLISHED PURSUANT TO SECTION FOUR HUNDRED  TWENTY-
 FIVE  OF  THE  REAL  PROPERTY  TAX LAW AND THE STAR CREDIT AND ANY OTHER
 PROPERTY TAX-BASED CREDIT ESTABLISHED PURSUANT TO THIS SECTION.  IN  THE
 CASE  OF THE FIRST REGISTRATION STATEMENT FILED IN A CALENDAR YEAR, SUCH
 STATEMENT SHALL ALSO INCLUDE A COPY OF  ALL  CURRENT  MANUFACTURED  HOME
 PARK  RULES AND REGULATIONS. IN THE CASE THAT THE MANUFACTURED HOME PARK
 RULES AND REGULATIONS ARE MODIFIED AFTER THE FILING OF THE FIRST  REGIS-
 TRATION  STATEMENT  IN A CALENDAR YEAR, THE NEXT SUBSEQUENT REGISTRATION
 STATEMENT SHALL ALSO INCLUDE A COPY OF SUCH RULES AND  REGULATIONS.  THE
 COMMISSIONER  SHALL  PROVIDE  THE  COMMISSIONER OF HOUSING AND COMMUNITY
 RENEWAL WITH THE INFORMATION CONTAINED IN  EACH  REPORT  NO  LATER  THAN
 THIRTY DAYS AFTER THE RECEIPT THEREOF.
   § 3. This act shall take effect immediately.
 
                                  PART PP
 
   Section  1.  Subparagraph  (iv)  of  paragraph (b) of subdivision 4 of
 section 425 of the real property tax law, as amended  by  section  2  of
 part B of chapter 59 of the laws of 2018, is amended to read as follows:

 S. 1509--C                         67                         A. 2009--C
 
   (iv)  (A)  Effective  with  applications for the enhanced exemption on
 final assessment rolls to be completed in  two  thousand  nineteen,  the
 application  form shall indicate that all owners of the property and any
 owners' spouses residing on the premises must have their  income  eligi-
 bility  verified  annually  by  the  department  and  must furnish their
 taxpayer identification numbers in order  to  facilitate  matching  with
 records  of the department. The income eligibility of such persons shall
 be verified annually by the  department,  and  the  assessor  shall  not
 request  income documentation from them. All applicants for the enhanced
 exemption and all assessing units shall be required  to  participate  in
 this  program,  which  shall  be  known  as the STAR income verification
 program.
   (B) EFFECTIVE WITH FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOU-
 SAND TWENTY, THE COMMISSIONER SHALL ALSO ANNUALLY VERIFY THE ELIGIBILITY
 OF SUCH PERSONS FOR THE ENHANCED EXEMPTION ON THE BASIS OF AGE AND RESI-
 DENCY AS WELL AS INCOME.
   (C) Where the commissioner finds that the enhanced exemption should be
 replaced with a basic exemption because [the income limitation  applica-
 ble  to  the  enhanced exemption has been exceeded] THE PROPERTY IS ONLY
 ELIGIBLE FOR A BASIC EXEMPTION, he or she  shall  provide  the  property
 owners  with  notice  and  an  opportunity to submit to the commissioner
 evidence to the contrary. Where the commissioner finds that the enhanced
 exemption should be removed or denied  without  being  replaced  with  a
 basic  exemption  because [the income limitation applicable to the basic
 exemption has also been exceeded]  THE  PROPERTY  IS  NOT  ELIGIBLE  FOR
 EITHER  EXEMPTION,  he  or  she  shall  provide the property owners with
 notice and an opportunity to submit to the commissioner evidence to  the
 contrary.  In  either case, if the owners fail to respond to such notice
 within forty-five days from the mailing thereof, or  if  their  response
 does  not  show  to the commissioner's satisfaction that the property is
 eligible for the exemption claimed, the commissioner  shall  direct  the
 assessor  or  other  person  having custody or control of the assessment
 roll or tax roll to either replace the enhanced exemption with  a  basic
 exemption, or to remove or deny the enhanced exemption without replacing
 it  with  a  basic  exemption,  as  appropriate.  The commissioner shall
 further direct such person to  correct  the  roll  accordingly.  Such  a
 directive  shall  be  binding  upon  the assessor or other person having
 custody or control of the assessment roll or  tax  roll,  and  shall  be
 implemented by such person without the need for further documentation or
 approval.
   [(C)]  (D)  Notwithstanding  any  provision  of  law  to the contrary,
 neither an assessor nor a board of assessment review has  the  authority
 to  consider  an objection to the replacement or removal or denial of an
 exemption pursuant to this  subdivision,  nor  may  such  an  action  be
 reviewed  in  a proceeding to review an assessment pursuant to title one
 or one-A of article seven of this chapter. Such an action  may  only  be
 challenged before the department. If a taxpayer is dissatisfied with the
 department's  final determination, the taxpayer may appeal that determi-
 nation to the state board of real property tax services in  a  form  and
 manner  to be prescribed by the commissioner. Such appeal shall be filed
 within forty-five days from  the  issuance  of  the  department's  final
 determination. If dissatisfied with the state board's determination, the
 taxpayer  may  seek judicial review thereof pursuant to article seventy-
 eight of the civil practice law and rules. The taxpayer shall  otherwise
 have  no  right to challenge such final determination in a court action,
 administrative proceeding or any other form of  legal  recourse  against

 S. 1509--C                         68                         A. 2009--C

 the  commissioner,  the department, the state board of real property tax
 services, the assessor or other person having custody or control of  the
 assessment roll or tax roll regarding such action.
   §  2. Paragraph (c) of subdivision 13 of section 425 of the real prop-
 erty tax law, as amended by section 1 of part J of  chapter  57  of  the
 laws  of  2013,  is amended, and a new paragraph (f) is added to read as
 follows:
   (c) Additional consequences. A penalty tax may be imposed pursuant  to
 this  subdivision whether or not the improper exemption has been revoked
 in the manner provided by this section. In addition, a person or persons
 who are found to have made a material misstatement shall be disqualified
 from further exemption pursuant to this section, AND IF  SUCH  MISSTATE-
 MENT  APPEARS ON AN APPLICATION FILED ON OR AFTER APRIL FIRST, TWO THOU-
 SAND NINETEEN, FROM THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION
 SIX HUNDRED SIX OF THE TAX LAW, for a period  of  [five  years  if  such
 misstatement appears on an application filed prior to October first, two
 thousand  thirteen,  and]  six years [if such misstatement appears on an
 application filed thereafter]. In addition, such person or  persons  may
 be subject to prosecution pursuant to the penal law.
   (F)  ASSESSOR NOTIFICATION. THE ASSESSOR SHALL INFORM THE COMMISSIONER
 WHENEVER A PERSON OR PERSONS IS FOUND TO HAVE MADE A MATERIAL  MISSTATE-
 MENT ON AN APPLICATION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION.
   §  3. Paragraph (13) of subsection (eee) of section 606 of the tax law
 is amended by adding a new subparagraph (E) to read as follows:
   (E) ON OR AFTER APRIL FIRST, TWO THOUSAND NINETEEN, A TAXPAYER WHO  IS
 FOUND  TO  HAVE  MADE  A MATERIAL MISSTATEMENT ON AN APPLICATION FOR THE
 CREDIT AUTHORIZED BY THIS SECTION SHALL BE DISQUALIFIED  FROM  RECEIVING
 SUCH  CREDIT FOR SIX YEARS. AS USED HEREIN, THE TERM "MATERIAL MISSTATE-
 MENT" SHALL HAVE THE SAME MEANING AS  SET  FORTH  IN  PARAGRAPH  (A)  OF
 SUBDIVISION  THIRTEEN  OF  SECTION  FOUR HUNDRED TWENTY-FIVE OF THE REAL
 PROPERTY TAX LAW.
   § 4. Subparagraph (E) of paragraph (10) of subsection (eee) of section
 606 of the tax law, as amended by section 8 of part A of chapter  73  of
 the laws of 2016, is amended to read as follows:
   (E)  If  the  commissioner determines after issuing an advance payment
 that it was issued in an excessive amount or to an ineligible or  incor-
 rect  party,  the  commissioner shall be empowered to utilize any of the
 procedures for collection, levy and lien  of  personal  income  tax  set
 forth  in  this article, any other relevant procedures referenced within
 the provisions of this article, and any other law as may be  applicable,
 to  recoup the improperly issued amount; PROVIDED THAT IN THE EVENT SUCH
 PARTY WAS DETERMINED TO BE INELIGIBLE ON  THE  BASIS  THAT  HIS  OR  HER
 PRIMARY  RESIDENCE  RECEIVED THE STAR EXEMPTION IN THE ASSOCIATED FISCAL
 YEAR, THE IMPROPERLY ISSUED CREDIT AMOUNT SHALL  BE  DEEMED  A  CLERICAL
 ERROR AND SHALL BE PAID UPON NOTICE AND DEMAND WITHOUT THE ISSUANCE OF A
 NOTICE  OF  DEFICIENCY  AND SHALL BE ASSESSED, COLLECTED AND PAID IN THE
 SAME MANNER AS TAXES.
   § 5. This act shall take effect immediately.
 
                                  PART QQ
 
   Section 1.  Section 467 of the real property tax  law  is  amended  by
 adding a new subdivision 11 to read as follows:
   11. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, UPON THE
 REQUEST  OF  AN  ASSESSOR, THE COMMISSIONER MAY DISCLOSE TO THE ASSESSOR
 THE NAMES AND ADDRESSES OF THE OWNERS OF  PROPERTY  IN  THAT  ASSESSOR'S

 S. 1509--C                         69                         A. 2009--C
 
 ASSESSING UNIT WHO ARE RECEIVING THE ENHANCED STAR EXEMPTION OR ENHANCED
 STAR  CREDIT  AND  WHOSE  FEDERAL ADJUSTED GROSS INCOME IS LESS THAN THE
 UPPERMOST AMOUNT SPECIFIED BY SUBPARAGRAPH THREE  OF  PARAGRAPH  (B)  OF
 SUBDIVISION  ONE  OF  THIS  SECTION (REPRESENTED THEREIN AS M + $8,400).
 SUCH AMOUNT SHALL BE DETERMINED WITHOUT REGARD TO ANY LOCAL OPTIONS THAT
 THE MUNICIPAL CORPORATION MAY OR MAY NOT HAVE EXERCISED IN  RELATION  TO
 INCREASING OR DECREASING THE MAXIMUM INCOME ELIGIBILITY LEVEL AUTHORIZED
 BY  THIS SECTION, PROVIDED THAT THE AMOUNT SO DETERMINED FOR A CITY WITH
 A POPULATION OF ONE MILLION OR MORE SHALL TAKE INTO ACCOUNT THE DISTINCT
 MAXIMUM INCOME ELIGIBILITY LEVEL ESTABLISHED FOR SUCH CITY BY  PARAGRAPH
 (A)  OF  SUBDIVISION THREE OF THIS SECTION. IN NO CASE SHALL THE COMMIS-
 SIONER DISCLOSE TO AN ASSESSOR THE AMOUNT OF AN OWNER'S FEDERAL ADJUSTED
 GROSS INCOME.
   (B) THE ASSESSOR MAY USE THE INFORMATION CONTAINED IN SUCH A REPORT TO
 CONTACT THOSE OWNERS WHO ARE NOT ALREADY RECEIVING THE EXEMPTION AUTHOR-
 IZED BY THIS SECTION AND TO SUGGEST THAT THEY CONSIDER APPLYING FOR  IT.
 PROVIDED,  HOWEVER,  THAT NOTHING CONTAINED HEREIN SHALL BE CONSTRUED AS
 ENABLING ANY PERSON OR PERSONS TO QUALIFY FOR THE  EXEMPTION  AUTHORIZED
 BY  THIS  SECTION  ON  THE BASIS OF THEIR FEDERAL ADJUSTED GROSS INCOME,
 RATHER THAN ON THE BASIS OF THEIR INCOME AS DETERMINED PURSUANT  TO  THE
 PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION.
   (C)  INFORMATION DISCLOSED TO AN ASSESSOR PURSUANT TO THIS SUBDIVISION
 SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION.  IT
 SHALL  BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE
 PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
   § 2. Section 1532 of the real property tax law is amended by adding  a
 new subdivision 5 to read as follows:
   5.  INFORMATION  REGARDING DECEDENTS PROVIDED BY THE COMMISSIONER TO A
 COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES PURSUANT TO SUBSECTION (C)
 OF SECTION SIX HUNDRED FIFTY-ONE OF THE TAX LAW SHALL BE USED  ONLY  FOR
 PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. THE CONTENTS OF THE REPORT
 MAY BE SHARED WITH THE ASSESSOR AND TAX COLLECTING OFFICER OF THE MUNIC-
 IPAL  CORPORATION  IN  WHICH THE DECEDENT'S FORMER RESIDENCE IS LOCATED,
 AND WITH THE ENFORCING OFFICER IF SUCH RESIDENCE IS  SUBJECT  TO  DELIN-
 QUENT TAXES. THE INFORMATION SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND
 SHALL  NOT  BE  SUBJECT  TO  THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC
 OFFICERS LAW.
   § 3. Subsection (c) of section 651 of the tax law, as amended by chap-
 ter 783 of the laws of 1962, is amended to read as follows:
   (c) Decedents. The return for any deceased individual  shall  be  made
 and  filed  by his executor, administrator, or other person charged with
 his property. If a final return of a decedent is for a  fractional  part
 of a year, the due date of such return shall be the fifteenth day of the
 fourth  month following the close of the twelve-month period which began
 with the first day of such fractional part of the year.  NOTWITHSTANDING
 ANY PROVISION OF LAW TO THE CONTRARY, WHEN A RETURN HAS BEEN FILED FOR A
 DECEDENT, THE COMMISSIONER MAY DISCLOSE THE  DECEDENT'S  NAME,  ADDRESS,
 AND  THE  DATE OF DEATH TO THE DIRECTOR OF REAL PROPERTY TAX SERVICES OF
 THE COUNTY IN WHICH THE ADDRESS REPORTED ON SUCH RETURN IS LOCATED.
   § 4. This act shall take effect immediately.
 
                                  PART RR
 
   Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real
 property tax law, as added by section 1 of part FF of chapter 57 of  the
 laws of 2010, is amended to read as follows:

 S. 1509--C                         70                         A. 2009--C
 
   (b-1)  Income.  For  final assessment rolls to be used for the levy of
 taxes for the two thousand eleven-two thousand twelve THROUGH TWO  THOU-
 SAND  EIGHTEEN-TWO THOUSAND NINETEEN school [year and thereafter] YEARS,
 the parcel's affiliated income may be no greater than five hundred thou-
 sand  dollars,  as  determined  by  the  commissioner  [of  taxation and
 finance] pursuant to SUBDIVISION FOURTEEN OF THIS SECTION OR section one
 hundred seventy-one-u of the tax law, in order to be  eligible  for  the
 basic exemption authorized by this section. BEGINNING WITH THE TWO THOU-
 SAND  NINETEEN-TWO  THOUSAND  TWENTY  SCHOOL  YEAR,  FOR PURPOSES OF THE
 EXEMPTION AUTHORIZED BY THIS SECTION, THE PARCEL'S AFFILIATED INCOME MAY
 BE NO GREATER THAN TWO HUNDRED FIFTY THOUSAND DOLLARS, AS SO DETERMINED.
 As used herein, the term "affiliated income"  shall  mean  the  combined
 income  of all of the owners of the parcel who resided primarily thereon
 on the applicable taxable status date, and of any owners' spouses resid-
 ing primarily thereon. For exemptions on final assessment  rolls  to  be
 used  for  the  levy  of  taxes for the two thousand eleven-two thousand
 twelve school year, affiliated income shall be determined based upon the
 parties' incomes for the income tax year ending in two thousand nine. In
 each subsequent school year, the applicable income  tax  year  shall  be
 advanced  by  one  year. The term "income" as used herein shall have the
 same meaning as in subdivision four of this section.
   § 2. Subparagraph (A) of paragraph 3 of subsection  (eee)  of  section
 606 of the tax law, as added by section 8 of part A of chapter 73 of the
 laws of 2016, is amended to read as follows:
   (A)  Beginning  with taxable years after two thousand fifteen, a basic
 STAR credit shall be available to a qualified taxpayer if the affiliated
 income of the parcel that serves as the taxpayer's primary residence  is
 less  than  or  equal to five hundred thousand dollars. THE INCOME LIMIT
 ESTABLISHED FOR THE BASIC STAR EXEMPTION BY PARAGRAPH (B-1) OF  SUBDIVI-
 SION  THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX
 LAW SHALL NOT BE TAKEN INTO ACCOUNT WHEN DETERMINING ELIGIBILITY FOR THE
 BASIC STAR CREDIT.
   § 3. This act shall take effect immediately.
 
                                  PART SS
 
   Section 1. Subdivision 6 of section 1306-a of the  real  property  tax
 law,  as  amended  by  section 3 of part TT of chapter 59 of the laws of
 2017, is amended to read as follows:
   6. When the commissioner determines, at least twenty days prior to the
 levy of school district taxes, that an advance credit  of  the  personal
 income  tax credit authorized by subsection (eee) of section six hundred
 six of the tax law will be provided to the owners of a  parcel  in  that
 school  district,  he  or  she  shall so notify the assessor, the county
 director of real property tax  services,  and  the  authorities  of  the
 school  district,  who  shall  cause a statement to be placed on the tax
 bill for the parcel in substantially the following form:  "An  estimated
 STAR  check HAS BEEN OR will be mailed to you [upon issuance] by the NYS
 Tax Department. Any overpayment or underpayment  can  be  reconciled  on
 your next tax return or STAR credit check."
   Notwithstanding  any  provision  of  law to the contrary, in the event
 that the parcel in question had been granted a  STAR  exemption  on  the
 assessment  roll upon which school district taxes are to be levied, such
 exemption shall be deemed null and  void,  shall  be  removed  from  the
 assessment  roll, and shall be disregarded when the parcel's tax liabil-
 ity is determined. The assessor or other  local  official  or  officials

 S. 1509--C                         71                         A. 2009--C
 
 having  custody  and  control  of  the data file used to generate school
 district tax rolls and tax bills shall be  authorized  and  directed  to
 change  such file as necessary to enable the school district authorities
 to discharge the duties imposed upon them by this subdivision.
   § 2. This act shall take effect immediately.
 
                                  PART TT
 
   Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real
 property  tax  law, as added by section 1 of part D of chapter 60 of the
 laws of 2016, is amended to read as follows:
   (a-2) Notwithstanding any provision of law to the contrary,  where  [a
 renewal]  AN application for the "enhanced" STAR exemption authorized by
 subdivision four of this section has not been filed  on  or  before  the
 taxable  status date, and the owner believes that good cause existed for
 the failure to file the [renewal] application by that  date,  the  owner
 may,  no  later than the last day for paying school taxes without incur-
 ring interest or penalty, submit a written request to  the  commissioner
 asking him or her to extend the filing deadline and grant the exemption.
 Such  request  shall  contain  an  explanation  of  why the deadline was
 missed, and shall be accompanied by [a renewal] AN application, reflect-
 ing the facts and circumstances as they existed on  the  taxable  status
 date.  After  consulting  with the assessor, the commissioner may extend
 the filing deadline and grant  the  exemption  if  the  commissioner  is
 satisfied  that  (i)  good  cause  existed  for  the failure to file the
 [renewal] application by the taxable status  date,  and  that  (ii)  the
 applicant is otherwise entitled to the exemption. The commissioner shall
 mail  notice of his or her determination to such owner and the assessor.
 If the determination  states  that  the  commissioner  has  granted  the
 exemption,  the  assessor  shall thereupon be authorized and directed to
 correct the assessment roll  accordingly,  or,  if  another  person  has
 custody or control of the assessment roll, to direct that person to make
 the appropriate corrections. If the correction is not made before school
 taxes are levied, the [failure to take the exemption into account in the
 computation  of  the tax shall be deemed a "clerical error" for purposes
 of title three of article five of this chapter, and shall  be  corrected
 accordingly]   SCHOOL  DISTRICT  AUTHORITIES  SHALL  BE  AUTHORIZED  AND
 DIRECTED TO TAKE ACCOUNT OF THE FACT THAT THE COMMISSIONER  HAS  GRANTED
 THE  EXEMPTION  BY  CORRECTING THE APPLICANT'S TAX BILL AND/OR ISSUING A
 REFUND ACCORDINGLY.
   § 2. Paragraph (d) of subdivision 2 of section 496 of the real proper-
 ty tax law, as added by section 3 of part A of chapter 60 of the laws of
 2016, is amended to read as follows:
   (d) If the applicant is renouncing a STAR exemption in order to quali-
 fy for the personal income tax credit authorized by subsection (eee)  of
 section  six  hundred  six  of  the tax law, and no other exemptions are
 being renounced on the same application, OR IF THE APPLICANT IS RENOUNC-
 ING A STAR EXEMPTION BEFORE SCHOOL TAXES HAVE BEEN LEVIED ON THE ASSESS-
 MENT ROLL UPON WHICH THAT EXEMPTION APPEARS, no processing fee shall  be
 applicable.
   § 3. Paragraph (a) of subdivision 2 of section 496 of the real proper-
 ty  tax law, as amended by section 3 of part A of chapter 60 of the laws
 of 2016, is amended to read as follows:
   (a) For each assessment roll on which the renounced exemption appears,
 the assessed value that was exempted shall be multiplied by the tax rate
 or rates that were applied to that assessment roll, OR IN THE CASE OF  A

 S. 1509--C                         72                         A. 2009--C

 RENOUNCED  STAR EXEMPTION, THE TAX SAVINGS CALCULATED PURSUANT TO SUBDI-
 VISION TWO OF SECTION THIRTEEN HUNDRED SIX-A OF THIS  CHAPTER.  Interest
 shall  then  be  added  to  each  such product at the rate prescribed by
 section  nine hundred twenty-four-a of this chapter or such other law as
 may be applicable for each month or portion thereon since  the  levy  of
 taxes upon such assessment roll.
   § 4. Paragraph 5 of subsection (eee) of section 606 of the tax law, as
 amended  by  section  8  of part A of chapter 73 of the laws of 2016, is
 amended to read as follows:
   (5) Disqualification. A taxpayer shall  not  qualify  for  the  credit
 authorized  by  this subsection if the parcel that serves as the taxpay-
 er's primary residence received the STAR  exemption  on  the  assessment
 roll  upon  which  school  district taxes for the associated fiscal year
 [where] WERE levied. Provided, however, that  the  taxpayer  may  remove
 this  disqualification  by  renouncing  the  exemption  [and  making any
 required payments] by December thirty-first  of  the  taxable  year,  as
 provided  by  subdivision sixteen of section four hundred twenty-five of
 the real property tax law, AND MAKING ANY REQUIRED PAYMENTS  WITHIN  THE
 TIME  FRAME  PRESCRIBED  BY  SECTION FOUR HUNDRED NINETY-SIX OF THE REAL
 PROPERTY TAX LAW.
   § 5. This act shall take effect immediately.
 
                                  PART UU
 
   Section 1. The tax law is amended by adding a new article 28-C to read
 as follows:
 
                               ARTICLE 28-C
                    SUPPLEMENTAL TAX ON VAPOR PRODUCTS

 SECTION 1180. DEFINITIONS.
         1181. IMPOSITION OF TAX.
         1182. IMPOSITION OF COMPENSATING USE TAX.
         1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL.
         1184. ADMINISTRATIVE PROVISIONS.
         1185. CRIMINAL PENALTIES.
         1186. DEPOSIT AND DISPOSITION OF REVENUE.
   § 1180. DEFINITIONS. FOR THE PURPOSES OF THE  TAXES  IMPOSED  BY  THIS
 ARTICLE, THE FOLLOWING TERMS SHALL MEAN:
   (A) "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS
 OF  THE  PRESENCE  OF  NICOTINE  THEREIN,  THAT  IS MANUFACTURED IN TO A
 FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE,  ELECTRONIC  CIGAR,
 ELECTRONIC  CIGARILLO,  ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER
 SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY  PRODUCT  APPROVED
 BY  THE  UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL
 DEVICE, OR MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF  ARTI-
 CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
   (B) "VAPOR PRODUCTS DEALER" MEANS A PERSON LICENSED BY THE COMMISSION-
 ER TO SELL VAPOR PRODUCTS IN THIS STATE.
   §  1181.  IMPOSITION  OF  TAX. IN ADDITION TO ANY OTHER TAX IMPOSED BY
 THIS CHAPTER OR OTHER LAW, THERE IS  HEREBY  IMPOSED  A  TAX  OF  TWENTY
 PERCENT  ON RECEIPTS FROM THE RETAIL SALE OF VAPOR PRODUCTS SOLD IN THIS
 STATE. THE TAX IS IMPOSED ON THE PURCHASER AND COLLECTED  BY  THE  VAPOR
 PRODUCTS  DEALER AS DEFINED IN SUBDIVISION (B) OF SECTION ELEVEN HUNDRED
 EIGHTY OF THIS ARTICLE, IN TRUST FOR AND ON ACCOUNT OF THE STATE.

 S. 1509--C                         73                         A. 2009--C
 
   § 1182. IMPOSITION OF COMPENSATING USE TAX. (A) EXCEPT TO  THE  EXTENT
 THAT  VAPOR  PRODUCTS  HAVE  ALREADY  BEEN OR WILL BE SUBJECT TO THE TAX
 IMPOSED BY SECTION ELEVEN HUNDRED EIGHTY-ONE OF  THIS  ARTICLE,  OR  ARE
 OTHERWISE  EXEMPT  UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED A USE TAX
 ON  EVERY  USE  WITHIN  THE  STATE  OF  VAPOR PRODUCTS: (1) PURCHASED AT
 RETAIL; AND (2) MANUFACTURED OR PROCESSED BY THE USER IF  ITEMS  OF  THE
 SAME  KIND  ARE  SOLD  BY HIM OR HER IN THE REGULAR COURSE OF HIS OR HER
 BUSINESS.
   (B) FOR PURPOSES OF PARAGRAPH ONE OF SUBDIVISION (A) OF THIS  SECTION,
 THE  TAX  SHALL  BE  AT  THE RATE OF TWENTY PERCENT OF THE CONSIDERATION
 GIVEN OR CONTRACTED TO BE GIVEN FOR  SUCH  VAPOR  PRODUCT  PURCHASED  AT
 RETAIL.  FOR  PURPOSES  OF  PARAGRAPH  TWO  OF  SUBDIVISION  (A) OF THIS
 SECTION, THE TAX SHALL BE AT THE RATE OF TWENTY PERCENT OF THE PRICE  AT
 WHICH  SUCH ITEMS OF THE SAME KIND OF VAPOR PRODUCT ARE OFFERED FOR SALE
 BY THE USER, AND THE MERE STORAGE, KEEPING, RETENTION OR WITHDRAWAL FROM
 STORAGE OF SUCH VAPOR PRODUCT BY THE PERSON THAT MANUFACTURED  OR  PROC-
 ESSED  SUCH  VAPOR  PRODUCT  SHALL NOT BE DEEMED A TAXABLE USE BY HIM OR
 HER.
   (C) THE TAX DUE PURSUANT TO THIS SECTION SHALL BE PAID AND REPORTED NO
 LATER THAN TWENTY DAYS AFTER SUCH  USE  ON  A  FORM  PRESCRIBED  BY  THE
 COMMISSIONER.
   §  1183.  VAPOR  PRODUCTS  DEALER  REGISTRATION AND RENEWAL. (A) EVERY
 PERSON WHO INTENDS TO SELL VAPOR PRODUCTS IN  THIS  STATE  MUST  RECEIVE
 FROM THE COMMISSIONER A CERTIFICATE OF REGISTRATION PRIOR TO ENGAGING IN
 BUSINESS.  SUCH  PERSON  MUST ELECTRONICALLY SUBMIT A PROPERLY COMPLETED
 APPLICATION FOR A CERTIFICATE OF REGISTRATION FOR EACH LOCATION AT WHICH
 VAPOR PRODUCTS WILL BE SOLD IN THIS STATE, ON A FORM PRESCRIBED  BY  THE
 COMMISSIONER,  AND  SHALL BE ACCOMPANIED BY A NON-REFUNDABLE APPLICATION
 FEE OF THREE HUNDRED DOLLARS.
    (B) A VAPOR PRODUCTS DEALER  CERTIFICATE  OF  REGISTRATION  SHALL  BE
 VALID  FOR  THE  CALENDAR  YEAR  FOR  WHICH  IT IS ISSUED UNLESS EARLIER
 SUSPENDED OR REVOKED. UPON THE EXPIRATION OF  THE  TERM  STATED  ON  THE
 CERTIFICATE  OF REGISTRATION, SUCH CERTIFICATE SHALL BE NULL AND VOID. A
 CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE  AND
 SHALL BE DESTROYED IMMEDIATELY UPON THE VAPOR PRODUCTS DEALER CEASING TO
 DO  BUSINESS  AS SPECIFIED IN SUCH CERTIFICATE OR IN THE EVENT THAT SUCH
 BUSINESS NEVER COMMENCED.
   (C) EVERY VAPOR PRODUCT DEALER SHALL PUBLICLY DISPLAY A VAPOR PRODUCTS
 DEALER CERTIFICATE OF REGISTRATION IN EACH PLACE  OF  BUSINESS  IN  THIS
 STATE  WHERE  VAPOR PRODUCTS ARE SOLD AT RETAIL. A VAPOR PRODUCTS DEALER
 WHO HAS NO REGULAR PLACE OF BUSINESS SHALL PUBLICLY DISPLAY  SUCH  VALID
 CERTIFICATE  ON EACH OF ITS CARTS, STANDS, TRUCKS OR OTHER MERCHANDISING
 DEVICES THROUGH WHICH IT SELLS VAPOR PRODUCTS.
   (D) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS-
 TRATION TO ANY APPLICANT WHO DOES NOT POSSESS  A  VALID  CERTIFICATE  OF
 AUTHORITY  UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER.  IN
 ADDITION, THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE  OF  REGIS-
 TRATION,  OR  SUSPEND,  CANCEL  OR  REVOKE A CERTIFICATE OF REGISTRATION
 ISSUED TO ANY PERSON WHO: (A) HAS A PAST-DUE LIABILITY AS THAT  TERM  IS
 DEFINED  IN  SECTION  ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER; (B) HAS
 HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE OR ANY  LICENSE  OR
 REGISTRATION  PROVIDED  FOR IN THIS CHAPTER REVOKED WITHIN ONE YEAR FROM
 THE DATE ON WHICH SUCH APPLICATION WAS FILED; (C) HAS  BEEN CONVICTED OF
 A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM  THE  DATE  ON
 WHICH  SUCH  APPLICATION WAS FILED; (D) WILLFULLY FAILS TO FILE A REPORT
 OR RETURN REQUIRED BY THIS ARTICLE; (E) WILLFULLY FILES,  CAUSES  TO  BE

 S. 1509--C                         74                         A. 2009--C
 
 FILED,  GIVES  OR  CAUSES  TO  BE GIVEN A REPORT, RETURN, CERTIFICATE OR
 AFFIDAVIT REQUIRED BY THIS ARTICLE WHICH IS FALSE; (F)  WILLFULLY  FAILS
 TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS
 ARTICLE;  OR (G) WHOSE PLACE OF BUSINESS IS AT THE SAME PREMISES AS THAT
 OF A PERSON WHOSE VAPOR PRODUCTS DEALER REGISTRATION  HAS  BEEN  REVOKED
 AND  WHERE  SUCH  REVOCATION IS STILL IN EFFECT, UNLESS THE APPLICANT OR
 VAPOR PRODUCTS DEALER PROVIDES THE COMMISSIONER WITH ADEQUATE DOCUMENTA-
 TION DEMONSTRATING THAT SUCH APPLICANT OR VAPOR PRODUCTS DEALER ACQUIRED
 THE PREMISES OR BUSINESS THROUGH AN ARM'S LENGTH TRANSACTION AS  DEFINED
 IN  PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-A OF
 THIS CHAPTER.
   (2) IN ADDITION TO THE GROUNDS  PROVIDED  IN  PARAGRAPH  ONE  OF  THIS
 SUBDIVISION,  THE  COMMISSIONER  SHALL  REFUSE TO ISSUE A CERTIFICATE OF
 REGISTRATION AND SHALL CANCEL OR SUSPEND A CERTIFICATE  OF  REGISTRATION
 AS  DIRECTED BY AN ENFORCEMENT OFFICER PURSUANT TO ARTICLE THIRTEEN-F OF
 THE PUBLIC HEALTH LAW. NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO  THE
 CONTRARY,  AN APPLICANT WHOSE APPLICATION FOR A CERTIFICATE OF REGISTRA-
 TION IS REFUSED  OR  A  VAPOR  PRODUCTS  DEALER  WHOSE  REGISTRATION  IS
 CANCELLED  OR  SUSPENDED  UNDER  THIS PARAGRAPH SHALL HAVE NO RIGHT TO A
 HEARING UNDER THIS CHAPTER AND SHALL HAVE NO RIGHT TO COMMENCE  A  COURT
 ACTION  OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE COMMIS-
 SIONER  WITH  RESPECT  TO  SUCH  REFUSAL,  SUSPENSION  OR  CANCELLATION;
 PROVIDED,  HOWEVER,  THAT  NOTHING  HEREIN  SHALL BE CONSTRUED TO DENY A
 VAPOR PRODUCTS DEALER A HEARING UNDER ARTICLE THIRTEEN-F OF  THE  PUBLIC
 HEALTH LAW OR TO PROHIBIT VAPOR PRODUCTS DEALERS FROM COMMENCING A COURT
 ACTION  OR  PROCEEDING  AGAINST  AN  ENFORCEMENT  OFFICER  AS DEFINED IN
 SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC HEALTH LAW.
   (E) IF A VAPOR PRODUCTS DEALER IS SUSPENDED, CANCELLED OR REVOKED  AND
 SUCH  VAPOR  PRODUCTS  DEALER SELLS VAPOR PRODUCTS THROUGH MORE THAN ONE
 PLACE OF BUSINESS IN THIS STATE, THE VAPOR PRODUCTS DEALER'S CERTIFICATE
 OF REGISTRATION ISSUED TO THAT PLACE OF BUSINESS, CART, STAND, TRUCK  OR
 OTHER  MERCHANDISING  DEVICE,  WHERE  SUCH  VIOLATION OCCURRED, SHALL BE
 SUSPENDED,  REVOKED  OR  CANCELLED.  PROVIDED,  HOWEVER,  UPON  A  VAPOR
 PRODUCTS  DEALER'S THIRD SUSPENSION, CANCELLATION OR REVOCATION WITHIN A
 FIVE-YEAR PERIOD FOR ANY ONE OR MORE BUSINESSES OWNED OR OPERATED BY THE
 VAPOR PRODUCTS DEALER, SUCH SUSPENSION, CANCELLATION, OR  REVOCATION  OF
 THE  VAPOR  PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION SHALL APPLY TO
 ALL PLACES OF BUSINESS WHERE HE OR SHE  SELLS  VAPOR  PRODUCTS  IN  THIS
 STATE.
   (F)  EVERY  HOLDER  OF  A  CERTIFICATE OF REGISTRATION MUST NOTIFY THE
 COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE  CERTIF-
 ICATE OR CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR THE
 CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR BEFORE
 THE  LAST  DAY  OF  THE  MONTH IN WHICH A CHANGE OCCURS AND MUST BE MADE
 ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.
   (G) EVERY VAPOR PRODUCTS DEALER WHO HOLDS A CERTIFICATE  OF  REGISTRA-
 TION  UNDER  THIS ARTICLE SHALL BE REQUIRED TO REAPPLY FOR A CERTIFICATE
 OF REGISTRATION FOR THE FOLLOWING CALENDAR YEAR ON OR BEFORE THE TWENTI-
 ETH DAY OF SEPTEMBER AND SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME
 REQUIREMENTS AND  CONDITIONS,  INCLUDING  GROUNDS  FOR  REFUSAL,  AS  AN
 INITIAL  REGISTRATION  UNDER  THIS ARTICLE, INCLUDING BUT NOT LIMITED TO
 THE PAYMENT OF THE THREE HUNDRED DOLLAR APPLICATION FEE FOR EACH  RETAIL
 LOCATION.
   (H)  IN  ADDITION  TO  ANY  OTHER PENALTY IMPOSED BY THIS CHAPTER, ANY
 VAPOR PRODUCTS DEALER WHO VIOLATES THE PROVISIONS OF THIS  SECTION,  (1)
 FOR  A  FIRST  VIOLATION  IS  LIABLE FOR A CIVIL FINE NOT LESS THAN FIVE

 S. 1509--C                         75                         A. 2009--C
 
 THOUSAND DOLLARS BUT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND SUCH
 CERTIFICATE OF REGISTRATION MAY BE SUSPENDED FOR A PERIOD  OF  NOT  MORE
 THAN  SIX  MONTHS;  AND  (2) FOR A SECOND OR SUBSEQUENT VIOLATION WITHIN
 THREE YEARS FOLLOWING A PRIOR VIOLATION OF THIS SECTION, IS LIABLE FOR A
 CIVIL  FINE NOT LESS THAN TEN THOUSAND DOLLARS BUT NOT TO EXCEED THIRTY-
 FIVE THOUSAND DOLLARS  AND  SUCH  CERTIFICATE  OF  REGISTRATION  MAY  BE
 SUSPENDED  FOR  A  PERIOD OF UP TO THIRTY-SIX MONTHS; OR (3) FOR A THIRD
 VIOLATION WITHIN A PERIOD OF FIVE YEARS, ITS VAPOR PRODUCTS  CERTIFICATE
 OR  CERTIFICATES  OF REGISTRATION ISSUED TO EACH PLACE OF BUSINESS OWNED
 OR OPERATED BY THE VAPOR PRODUCTS DEALER IN THIS STATE, SHALL BE REVOKED
 FOR A PERIOD OF UP TO FIVE YEARS.
   § 1184. ADMINISTRATIVE PROVISIONS. (A) EXCEPT  AS  OTHERWISE  PROVIDED
 FOR IN THIS ARTICLE, THE TAXES IMPOSED BY THIS ARTICLE SHALL BE ADMINIS-
 TERED  AND  COLLECTED  IN  A  LIKE  MANNER AS AND JOINTLY WITH THE TAXES
 IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN  OF  THIS
 CHAPTER.  IN ADDITION, EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, ALL
 OF THE PROVISIONS  OF  ARTICLE  TWENTY-EIGHT  OF  THIS  CHAPTER  (EXCEPT
 SECTIONS  ELEVEN  HUNDRED  SEVEN,  ELEVEN  HUNDRED EIGHT, ELEVEN HUNDRED
 NINE, AND ELEVEN HUNDRED FORTY-EIGHT) RELATING TO OR APPLICABLE  TO  THE
 ADMINISTRATION,  COLLECTION  AND  REVIEW  OF  THE  TAXES IMPOSED BY SUCH
 SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN, INCLUDING, BUT  NOT
 LIMITED TO, THE PROVISIONS RELATING TO DEFINITIONS, RETURNS, EXEMPTIONS,
 PENALTIES,  TAX  SECRECY, PERSONAL LIABILITY FOR THE TAX, AND COLLECTION
 OF TAX FROM THE CUSTOMER, SHALL APPLY TO THE TAXES IMPOSED BY THIS ARTI-
 CLE SO FAR AS SUCH PROVISIONS  CAN  BE  MADE  APPLICABLE  TO  THE  TAXES
 IMPOSED BY THIS ARTICLE WITH SUCH LIMITATIONS AS SET FORTH IN THIS ARTI-
 CLE  AND  SUCH  MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH
 LANGUAGE TO THE TAXES SO IMPOSED. SUCH PROVISIONS SHALL APPLY  WITH  THE
 SAME  FORCE  AND  EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN
 SET FORTH IN FULL  IN  THIS  ARTICLE  EXCEPT  TO  THE  EXTENT  THAT  ANY
 PROVISION  IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS
 NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE.
   (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
 THE EXEMPTIONS PROVIDED IN PARAGRAPH TEN OF SUBDIVISION (A)  OF  SECTION
 ELEVEN  HUNDRED  FIFTEEN  OF THIS CHAPTER, AND THE PROVISIONS OF SECTION
 ELEVEN HUNDRED SIXTEEN, EXCEPT THOSE PROVIDED IN  PARAGRAPHS  ONE,  TWO,
 THREE AND SIX OF SUBDIVISION (A) OF SUCH SECTION, SHALL NOT APPLY TO THE
 TAXES IMPOSED BY THIS ARTICLE.
   (C)  NOTWITHSTANDING  THE PROVISIONS OF THIS SECTION OR SECTION ELEVEN
 HUNDRED FORTY-SIX OF THIS CHAPTER, THE  COMMISSIONER MAY, IN HIS OR  HER
 DISCRETION,  PERMIT  THE COMMISSIONER OF HEALTH OR HIS OR HER AUTHORIZED
 REPRESENTATIVE TO INSPECT ANY RETURN RELATED TO THE TAX IMPOSED BY  THIS
 ARTICLE  AND  MAY FURNISH TO THE  COMMISSIONER OF HEALTH ANY SUCH RETURN
 OR SUPPLY HIM OR HER WITH INFORMATION CONCERNING AN ITEM   CONTAINED  IN
 ANY  SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF A LIABILITY UNDER
 THIS ARTICLE.
   § 1185. CRIMINAL PENALTIES. THE CRIMINAL PENALTIES IN  SECTIONS  EIGH-
 TEEN  HUNDRED  ONE THROUGH EIGHTEEN   HUNDRED SEVEN AND EIGHTEEN HUNDRED
 SEVENTEEN OF THIS CHAPTER SHALL APPLY TO  THIS  ARTICLE  WITH  THE  SAME
 FORCE  AND  EFFECT  AS  IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET
 FORTH IN FULL IN THIS ARTICLE EXCEPT TO THE EXTENT THAT ANY PROVISION IS
 EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT  RELEVANT
 TO THE TAXES IMPOSED BY THIS ARTICLE.
   §  1186.  DEPOSIT AND DISPOSITION OF REVENUE. THE TAXES, INTEREST, AND
 PENALTIES IMPOSED BY THIS ARTICLE  AND  COLLECTED  OR  RECEIVED  BY  THE
 COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK-

 S. 1509--C                         76                         A. 2009--C
 
 ING  HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE COMPTROLLER,
 TO THE CREDIT OF THE COMPTROLLER IN TRUST FOR THE  TOBACCO  CONTROL  AND
 INSURANCE  INITIATIVES  POOL ESTABLISHED BY SECTION NINETY-TWO-DD OF THE
 STATE  FINANCE  LAW  AND  DISTRIBUTED  BY  THE COMMISSIONER OF HEALTH IN
 ACCORDANCE WITH SECTION  TWENTY-EIGHT  HUNDRED  SEVEN-V  OF  THE  PUBLIC
 HEALTH LAW. SUCH DEPOSITS WILL BE KEPT SEPARATE AND APART FROM ALL OTHER
 MONEY  IN  THE  POSSESSION  OF  THE  COMPTROLLER.  THE COMPTROLLER SHALL
 REQUIRE ADEQUATE SECURITY FROM ALL SUCH  DEPOSITORIES.    OF  THE  TOTAL
 REVENUE  COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER SHALL
 RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
 REFUNDS UNDER THIS ARTICLE. PROVIDED, HOWEVER THAT THE  COMMISSIONER  IS
 AUTHORIZED  AND  DIRECTED  TO DEDUCT FROM THE AMOUNTS HE OR SHE RECEIVES
 FROM THE REGISTRATION FEES UNDER SECTION ELEVEN HUNDRED EIGHTY-THREE  OF
 THIS  ARTICLE,  BEFORE  DEPOSIT  INTO  THE TOBACCO CONTROL AND INSURANCE
 INITIATIVES POOL, A REASONABLE AMOUNT NECESSARY TO EFFECTUATE REFUNDS OF
 APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE  THE  DEPARTMENT  FOR  THE
 COSTS  INCURRED  TO ADMINISTER, COLLECT AND DISTRIBUTE THE TAXES IMPOSED
 BY THIS ARTICLE.
   § 2. Subsection (a) of section 92-dd of  the  state  finance  law,  as
 amended  by  section  3  of part T of chapter 61 of the laws of 2011, is
 amended to read as follows:
   (a) On and after April first,  two  thousand  five,  such  fund  shall
 consist  of  the revenues heretofore and hereafter collected or required
 to be deposited pursuant to paragraph (a)  of  subdivision  eighteen  of
 section  twenty-eight hundred seven-c, and sections twenty-eight hundred
 seven-j, twenty-eight hundred seven-s and twenty-eight  hundred  seven-t
 of the public health law, subdivision (b) of section four hundred eight-
 y-two  AND SECTION ELEVEN HUNDRED EIGHTY-SIX of the tax law and required
 to be credited to the tobacco control and  insurance  initiatives  pool,
 subparagraph  (O)  of  paragraph  four of subsection (j) of section four
 thousand three hundred one of the insurance law, section twenty-seven of
 part A of chapter one of the laws of two  thousand  two  and  all  other
 moneys  credited  or  transferred  thereto from any other fund or source
 pursuant to law.
   § 3. This act shall take effect on the first day of a quarterly period
 described in subdivision (b)  of  section  1136  of  the  tax  law  next
 commencing  at least one hundred eighty days after this act shall become
 a law, and shall apply to sales and uses of vapor products on  or  after
 such date.

                                  PART VV
 
                           Intentionally Omitted
 
                                  PART WW
 
   Section  1.  Section  1166-a  of the tax law, as added by section 1 of
 part F of chapter 25 of the laws of 2009, is amended to read as follows:
   § 1166-a. Special supplemental tax on passenger car rentals WITHIN THE
 METROPOLITAN COMMUTER TRANSPORTATION DISTRICT. (a) In  addition  to  the
 tax  imposed  under  section eleven hundred sixty of this article and in
 addition to any tax imposed under any other  article  of  this  chapter,
 there  is  hereby  imposed  and there shall be paid a tax at the rate of
 [five] SIX percent upon the receipts from every rental  of  a  passenger
 car which is a retail sale of such passenger car within the metropolitan

 S. 1509--C                         77                         A. 2009--C
 
 commuter  transportation district as defined in [subdivision] SUBSECTION
 (a) of section eight hundred of this chapter.
   (b)  Except  to  the  extent  that a passenger car rental described in
 subdivision (a) of this section, OR SECTION ELEVEN  HUNDRED  SIXTY-SIX-B
 OF  THIS ARTICLE, has already been or will be subject to the tax imposed
 under such subdivision OR SECTION and except as otherwise exempted under
 this article, there is hereby imposed on every person and there shall be
 paid a use tax for the use within the metropolitan commuter  transporta-
 tion  district  as  defined  in  [subdivision] SUBSECTION (a) of section
 eight hundred of this chapter; of any passenger car rented by  the  user
 [which]  THAT  is  a  purchase  at retail of such passenger car, but not
 including any lease of a passenger  car  to  which  subdivision  (i)  of
 section  eleven  hundred eleven of this chapter applies. For purposes of
 this [paragraph] SUBDIVISION, the tax shall be at the rate of [five] SIX
 percent of the consideration given or contracted to be  given  for  such
 property,  or  for  the  use of such property, including any charges for
 shipping or delivery as described in paragraph three of subdivision  (b)
 of  section eleven hundred one of this chapter, but excluding any credit
 for tangible personal property accepted in part payment and intended for
 resale.
   § 2. The tax law is amended by adding a new section 1166-b to read  as
 follows:
   § 1166-B. SPECIAL SUPPLEMENTAL TAX ON PASSENGER CAR RENTALS OUTSIDE OF
 THE  METROPOLITAN  COMMUTER  TRANSPORTATION DISTRICT. (A) IN ADDITION TO
 THE TAX IMPOSED UNDER SECTION ELEVEN HUNDRED SIXTY OF THIS  ARTICLE  AND
 IN  ADDITION TO ANY TAX IMPOSED UNDER ANY OTHER ARTICLE OF THIS CHAPTER,
 THERE IS HEREBY IMPOSED AND THERE SHALL BE PAID A TAX AT THE RATE OF SIX
 PERCENT UPON THE RECEIPTS FROM EVERY RENTAL OF A PASSENGER CAR  THAT  IS
 NOT  SUBJECT  TO THE TAX DESCRIBED IN SECTION ELEVEN HUNDRED SIXTY-SIX-A
 OF THIS ARTICLE, BUT WHICH IS A RETAIL SALE OF SUCH PASSENGER CAR WITHIN
 THE STATE.
   (B) EXCEPT TO THE EXTENT THAT A  PASSENGER  CAR  RENTAL  DESCRIBED  IN
 SUBDIVISION   (A)  OF  THIS  SECTION  OR    IN  SECTION  ELEVEN  HUNDRED
 SIXTY-SIX-A OF THIS ARTICLE, HAS ALREADY BEEN SUBJECT TO THE TAX IMPOSED
 UNDER SUCH SUBDIVISION OR SECTION,  AND  EXCEPT  AS  OTHERWISE  EXEMPTED
 UNDER  THIS  ARTICLE,  THERE IS HEREBY IMPOSED ON EVERY PERSON AND THERE
 SHALL BE PAID A USE TAX FOR THE USE WITHIN THE STATE  OF  ANY  PASSENGER
 CAR  RENTED  BY  THE USER THAT IS A PURCHASE AT RETAIL OF SUCH PASSENGER
 CAR, BUT NOT INCLUDING ANY LEASE OF A PASSENGER CAR TO WHICH SUBDIVISION
 (I) OF SECTION ELEVEN  HUNDRED  ELEVEN  OF  THIS  CHAPTER  APPLIES.  FOR
 PURPOSES  OF  THIS  SUBDIVISION,  THE  TAX  SHALL  BE AT THE RATE OF SIX
 PERCENT OF THE CONSIDERATION GIVEN OR CONTRACTED TO BE  GIVEN  FOR  SUCH
 PROPERTY,  OR  FOR  THE  USE OF SUCH PROPERTY, INCLUDING ANY CHARGES FOR
 SHIPPING OR DELIVERY AS DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION  (B)
 OF  SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, BUT EXCLUDING ANY CREDIT
 FOR TANGIBLE PERSONAL PROPERTY ACCEPTED IN PART PAYMENT AND INTENDED FOR
 RESALE.
   § 3. Section 1167 of the tax law, as amended by section 3 of part F of
 chapter 25 of the laws of 2009, is amended to read as follows:
   § 1167. Deposit and disposition of revenue. All  taxes,  interest  and
 penalties  collected  or received by the commissioner under this article
 shall be deposited and disposed of pursuant to the provisions of section
 one hundred seventy-one-a of this chapter, except that  after  reserving
 amounts  in  accordance  with  such section one hundred seventy-one-a of
 this chapter, the remainder shall be paid  by  the  comptroller  to  the
 credit  of  the  highway  and  bridge  trust fund established by section

 S. 1509--C                         78                         A. 2009--C
 
 eighty-nine-b of the state finance law, provided, however[,]: (A) taxes,
 interest and penalties collected or received pursuant to section  eleven
 hundred  sixty-six-a  of this article shall be paid to the credit of the
 metropolitan transportation authority aid trust account of the metropol-
 itan  transportation  authority financial assistance fund established by
 section ninety-two-ff of the state finance law; AND (B) TAXES,  INTEREST
 AND  PENALTIES  COLLECTED OR RECEIVED PURSUANT TO SECTION ELEVEN HUNDRED
 SIXTY-SIX-B OF THIS ARTICLE SHALL BE PAID TO THE CREDIT  OF  THE  PUBLIC
 TRANSPORTATION  SYSTEMS  OPERATING  ASSISTANCE  ACCOUNT  ESTABLISHED  BY
 SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW.
   § 4. This act shall take effect June  1,  2019,  and  shall  apply  to
 rentals  of  passenger cars commencing on and after such date whether or
 not under a prior contract; provided, however where such  passenger  car
 rentals  are  billed  on a monthly, quarterly or other period basis, the
 tax imposed by this act shall apply to the rental  for  such  period  if
 more  than  half of the days included in such period are days subsequent
 to such effective date.
 
                                  PART XX
 
   Section 1. The tax law is amended by adding a new article 20-D to read
 as follows:
                               ARTICLE 20-D
                       EXCISE TAX ON SALE OF OPIOIDS
 SECTION 497. DEFINITIONS.
         498. IMPOSITION OF EXCISE TAX.
         499. RETURNS TO BE SECRET.
   § 497. DEFINITIONS. THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
 INGS WHEN USED IN THIS ARTICLE.
   (A) "OPIOID" SHALL MEAN AN "OPIATE" AS DEFINED BY SUBDIVISION  TWENTY-
 THREE  OF  SECTION THIRTY-THREE HUNDRED TWO OF THE PUBLIC HEALTH LAW AND
 ANY NATURAL, SYNTHETIC, OR SEMISYNTHETIC "NARCOTIC DRUG" AS  DEFINED  BY
 SUBDIVISION  TWENTY-TWO  OF SUCH SECTION THAT HAS AGONIST, PARTIAL AGON-
 IST, OR AGONIST/ANTAGONIST MORPHINE-LIKE ACTIVITIES OR  EFFECTS  SIMILAR
 TO NATURAL OPIUM ALKALOIDS, AND ANY DERIVATIVE, CONGENER, OR COMBINATION
 THEREOF  LISTED IN SCHEDULES II-V OF SECTION THIRTY-THREE HUNDRED SIX OF
 THE PUBLIC HEALTH LAW. THE TERM "OPIOID" SHALL NOT  MEAN  BUPRENORPHINE,
 METHADONE, OR MORPHINE.
   (B) "UNIT" SHALL MEAN A SINGLE FINISHED DOSAGE FORM OF AN OPIOID, SUCH
 AS A PILL, TABLET, CAPSULE, SUPPOSITORY, TRANSDERMAL PATCH, BUCCAL FILM,
 MILLILITER  OF  LIQUID,  MILLIGRAM  OF TOPICAL PREPARATION, OR ANY OTHER
 FORM.
   (C) "STRENGTH PER UNIT" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT,  AS
 MEASURED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC.
   (D)  "MORPHINE MILLIGRAM EQUIVALENT CONVERSION FACTOR" SHALL MEAN THAT
 REFERENCE STANDARD OF A PARTICULAR OPIOID AS IT RELATES  IN  POTENCY  TO
 MORPHINE AS DETERMINED BY THE COMMISSIONER OF HEALTH.
   (E)  "MORPHINE  MILLIGRAM  EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY
 ITS STRENGTH PER UNIT MULTIPLIED BY THE  MORPHINE  MILLIGRAM  EQUIVALENT
 CONVERSION FACTOR.
   (F)  "REGISTRANT"  SHALL  MEAN:  (1)  ANY PERSON, FIRM, CORPORATION OR
 ASSOCIATION THAT: (I) IS REQUIRED TO BE REGISTERED  WITH  THE  EDUCATION
 DEPARTMENT AS A WHOLESALER, MANUFACTURER, OR OUTSOURCING FACILITY PURSU-
 ANT  TO SECTION SIX THOUSAND EIGHT HUNDRED EIGHT OR SECTION SIX THOUSAND
 EIGHT HUNDRED EIGHT-B OF THE EDUCATION LAW AND (II) HOLDS AND  TRANSFERS
 TITLE  TO  AN  OPIOID UNIT; (2) ANY PERSON, FIRM, CORPORATION OR ASSOCI-

 S. 1509--C                         79                         A. 2009--C
 
 ATION THAT: (I) WOULD BE REQUIRED TO BE REGISTERED  WITH  THE  EDUCATION
 DEPARTMENT AS A WHOLESALER, MANUFACTURER, OR OUTSOURCING FACILITY PURSU-
 ANT  TO  SUCH  SECTION  SIX  THOUSAND  EIGHT HUNDRED EIGHT-B BUT FOR THE
 EXCEPTION  IN  SUBDIVISION TWO OF SUCH SECTION AND (II) HOLDS AND TRANS-
 FERS TITLE TO AN OPIOID UNIT; OR (3) ANY PERSON,  FIRM,  CORPORATION  OR
 ASSOCIATION  THAT:  (I)  IS  REQUIRED  TO  BE REGISTERED WITH THE HEALTH
 DEPARTMENT AS A MANUFACTURER OR DISTRIBUTOR OF  A  CONTROLLED  SUBSTANCE
 PURSUANT  TO  SECTION  THIRTY-THREE HUNDRED TEN OF THE PUBLIC HEALTH LAW
 AND (II) HOLDS AND TRANSFERS TITLE TO AN OPIOID UNIT.
   (G) "WHOLESALE ACQUISITION COST" SHALL MEAN  THE  MANUFACTURER'S  LIST
 PRICE  FOR  AN  OPIOID  UNIT  TO WHOLESALERS OR DIRECT PURCHASERS IN THE
 UNITED STATES, NOT INCLUDING PROMPT PAY OR OTHER DISCOUNTS,  REBATES  OR
 REDUCTIONS IN PRICE, FOR THE MOST RECENT MONTH FOR WHICH THE INFORMATION
 IS  AVAILABLE,  AS  REPORTED IN WHOLESALE PRICE GUIDES OR OTHER PUBLICA-
 TIONS OF DRUG OR BIOLOGICAL PRICING DATA.
   (H) "SALE" SHALL MEAN ANY TRANSFER OF TITLE TO AN OPIOID  UNIT  FOR  A
 CONSIDERATION  WHERE  ACTUAL  OR  CONSTRUCTIVE POSSESSION OF SUCH OPIOID
 UNIT IS TRANSFERRED BY A REGISTRANT HOLDING TITLE TO SUCH OPIOID UNIT TO
 A PURCHASER OR ITS DESIGNEE IN THIS STATE.  A  SALE  SHALL  NOT  INCLUDE
 EITHER THE DISPENSING OF AN OPIOID UNIT PURSUANT TO A PRESCRIPTION TO AN
 ULTIMATE  CONSUMER  OR  THE  TRANSFER  OF TITLE TO AN OPIOID UNIT FROM A
 MANUFACTURER IN THIS STATE TO A PURCHASER OUTSIDE THIS STATE  WHEN  SUCH
 OPIOID UNIT WILL BE USED OR CONSUMED OUTSIDE THIS STATE.
   § 498. IMPOSITION OF EXCISE TAX. (A) THERE IS HEREBY IMPOSED AN EXCISE
 TAX ON THE FIRST SALE OF EVERY OPIOID UNIT IN THE STATE AT THE FOLLOWING
 RATES:  (1)  A QUARTER OF A CENT PER MORPHINE MILLIGRAM EQUIVALENT WHERE
 THE WHOLESALE ACQUISITION COST IS LESS THAN FIFTY CENTS, OR (2) ONE  AND
 ONE-HALF  CENTS  PER   MORPHINE MILLIGRAM EQUIVALENT WHERE THE WHOLESALE
 ACQUISITION COST IS FIFTY CENTS OR MORE; EXCEPT THAT SUCH TAX SHALL  NOT
 APPLY  WHEN SUCH FIRST SALE IS TO ANY PROGRAM OPERATED PURSUANT TO ARTI-
 CLE FORTY OF THE PUBLIC HEALTH LAW AND ARTICLE THIRTY-TWO OF THE  MENTAL
 HYGIENE  LAW.  THE  TAX IMPOSED BY THIS ARTICLE SHALL BE CHARGED AGAINST
 AND PAID BY THE REGISTRANT MAKING SUCH FIRST SALE, AND SHALL  ACCRUE  AT
 THE  TIME  OF SUCH SALE. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF
 THIS ARTICLE AND TO PREVENT EVASION OF THE TAX HEREBY IMPOSED, IT  SHALL
 BE  PRESUMED  THAT  ANY SALE OF AN OPIOID UNIT IN THIS STATE BY A REGIS-
 TRANT IS THE FIRST SALE OF SUCH IN  THE  STATE  UNTIL  THE  CONTRARY  IS
 ESTABLISHED,  AND  THE  BURDEN OF PROVING THAT ANY SALE IS NOT THE FIRST
 SALE IN THE STATE SHALL BE UPON THE REGISTRANT.
   (B) EVERY REGISTRANT LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE  SHALL
 FILE  WITH  THE  COMMISSIONER  A RETURN ON FORMS TO BE PRESCRIBED BY THE
 COMMISSIONER SHOWING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT AND  WHOLE-
 SALE  ACQUISITION COSTS OF SUCH OPIOID UNITS THAT ARE SUBJECT TO THE TAX
 IMPOSED BY THIS ARTICLE, THE AMOUNT OF TAX DUE THEREON, AND SUCH FURTHER
 INFORMATION AS THE COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE FILED
 FOR QUARTERLY PERIODS ENDING ON THE LAST DAY OF MARCH,  JUNE,  SEPTEMBER
 AND DECEMBER OF EACH YEAR. EACH RETURN SHALL BE FILED WITHIN TWENTY DAYS
 AFTER  THE END OF SUCH QUARTERLY PERIOD AND SHALL COVER ALL OPIOID SALES
 IN THE STATE MADE IN THE PRIOR QUARTER, EXCEPT  THAT  THE  FIRST  RETURN
 REQUIRED  TO  BE  FILED PURSUANT TO THIS SECTION SHALL BE DUE ON JANUARY
 TWENTIETH, TWO THOUSAND TWENTY, AND SHALL COVER ALL OPIOID SALES  OCCUR-
 RING IN THE PERIOD BETWEEN THE EFFECTIVE DATE OF THIS ARTICLE AND DECEM-
 BER  THIRTY-FIRST,  TWO  THOUSAND NINETEEN. EVERY REGISTRANT REQUIRED TO
 FILE A RETURN UNDER THIS SECTION SHALL,  AT  THE  TIME  OF  FILING  SUCH
 RETURN,  PAY  TO  THE  COMMISSIONER  THE TOTAL AMOUNT OF TAX DUE FOR THE
 PERIOD COVERED BY SUCH RETURN. IF A RETURN IS NOT FILED  WHEN  DUE,  THE

 S. 1509--C                         80                         A. 2009--C
 
 TAX  SHALL  BE  DUE THE DAY ON WHICH THE RETURN IS REQUIRED TO BE FILED.
 THE COMMISSIONER MAY REQUIRE THAT THE RETURNS AND PAYMENTS  REQUIRED  BY
 THIS SECTION BE FILED OR PAID ELECTRONICALLY.
   (C)  WHERE A SALE OF AN OPIOID UNIT BY A REGISTRANT HAS BEEN CANCELLED
 BY THE PURCHASER AND TAX THEREON WAS PREVIOUSLY PAID BY THE  REGISTRANT,
 THE  COMMISSIONER  SHALL  ALLOW  TO THE REGISTRANT A REFUND OR CREDIT OF
 SUCH TAX ON A RETURN FOR A LATER PERIOD SUBJECT TO THE LIMITATIONS PERI-
 OD FOR CLAIMING A REFUND OR CREDIT AS PRESCRIBED BY SECTION ONE THOUSAND
 EIGHTY-SEVEN OF THIS CHAPTER. WHERE A REGISTRANT PROVES THAT  AN  OPIOID
 UNIT  FOR WHICH IT PREVIOUSLY PAID A TAX HAS BEEN DISTRIBUTED OUT OF THE
 STATE FOR USE OR CONSUMPTION OUTSIDE THIS STATE, THE COMMISSIONER  SHALL
 ALLOW  A  CREDIT  TO THE REGISTRANT FOR TAX PAID ON A RETURN FOR A LATER
 PERIOD SUBJECT TO THE  LIMITATIONS  PERIOD  FOR  CLAIMING  A  CREDIT  AS
 PRESCRIBED BY SECTION ONE THOUSAND EIGHTY-SEVEN OF THIS CHAPTER.
   (D)  ALL SALES SLIPS, INVOICES, RECEIPTS, OR OTHER STATEMENTS OR MEMO-
 RANDA OF SALE FROM ANY SALE OR PURCHASE OF OPIOID UNITS  BY  REGISTRANTS
 MUST  BE  RETAINED  FOR  A PERIOD OF SIX YEARS AFTER THE DUE DATE OF THE
 RETURN TO WHICH THEY RELATE, UNLESS  THE  COMMISSIONER  PROVIDES  FOR  A
 DIFFERENT  RETENTION  PERIOD BY RULE OR REGULATION. SUCH RECORDS MUST BE
 SUFFICIENT TO DETERMINE THE NUMBER OF UNITS TRANSFERRED ALONG  WITH  THE
 MORPHINE MILLIGRAM EQUIVALENT OF THE UNITS TRANSFERRED, AND OTHERWISE BE
 SUITABLE  TO  DETERMINE THE CORRECT AMOUNT OF TAX DUE. SUCH RECORDS MUST
 ALSO RECORD EITHER (1) THE ADDRESS FROM WHICH THE UNITS ARE  SHIPPED  OR
 DELIVERED,  ALONG  WITH  THE  ADDRESS  TO WHICH THE UNITS ARE SHIPPED OR
 DELIVERED, OR (2) THE PLACE AT WHICH ACTUAL PHYSICAL POSSESSION  OF  THE
 UNITS  IS TRANSFERRED. SUCH RECORDS SHALL BE PRODUCED UPON DEMAND BY THE
 COMMISSIONER.
   (E) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE  SAME
 FORCE  AND  EFFECT  AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCORPO-
 RATED IN FULL INTO THIS ARTICLE AND HAD EXPRESSLY REFERRED  TO  THE  TAX
 IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH
 ARTICLE  TWENTY-SEVEN  IS  EITHER  INCONSISTENT WITH A PROVISION OF THIS
 ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE.
   (F) THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH THE
 COMMISSIONER IN ADMINISTERING  THIS  TAX,  INCLUDING  SHARING  WITH  THE
 COMMISSIONER PERTINENT INFORMATION ABOUT REGISTRANTS UPON THE REQUEST OF
 THE COMMISSIONER.
   (G) EACH REGISTRANT SHALL PROVIDE A REPORT TO THE DEPARTMENT OF HEALTH
 DETAILING  ALL OPIOIDS SOLD BY SUCH REGISTRANT IN THE STATE OF NEW YORK.
 SUCH REPORT SHALL INCLUDE:
   (I)  THE  REGISTRANT'S  NAME,  ADDRESS,  PHONE  NUMBER,  FEDERAL  DRUG
 ENFORCEMENT  AGENCY  (DEA)  REGISTRATION  NUMBER,  EDUCATION  DEPARTMENT
 REGISTRATION NUMBER, AND CONTROLLED SUBSTANCE LICENSE NUMBER  ISSUED  BY
 THE DEPARTMENT OF HEALTH, IF APPLICABLE;
   (II)  THE  NAME,  ADDRESS AND DEA REGISTRATION NUMBER OF THE ENTITY TO
 WHOM THE OPIOID WAS SOLD;
   (III) THE DATE OF THE SALE OF THE OPIOID;
   (IV) THE GROSS RECEIPT TOTAL, IN DOLLARS, FOR EACH OPIOID SOLD;
   (V) THE NAME AND NATIONAL DRUG CODE OF THE OPIOID SOLD;
   (VI) THE NUMBER OF CONTAINERS AND THE STRENGTH AND METRIC QUANTITY  OF
 CONTROLLED SUBSTANCE IN EACH CONTAINER OF THE OPIOID SOLD;
   (VII) THE TOTAL NUMBER OF MORPHINE MILLIGRAM EQUIVALENTS SOLD; AND
   (VIII)  ANY  OTHER ELEMENTS AS DEEMED NECESSARY BY THE COMMISSIONER OF
 HEALTH.

 S. 1509--C                         81                         A. 2009--C
 
   SUCH INFORMATION SHALL BE REPORTED ANNUALLY IN SUCH FORM AS DEFINED BY
 THE COMMISSIONER OF HEALTH AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF
 SECTION FOUR HUNDRED NINETY-NINE OF THIS ARTICLE.
   §  499.  RETURNS  TO BE SECRET. (A) EXCEPT IN ACCORDANCE WITH A PROPER
 JUDICIAL ORDER OR AS OTHERWISE PROVIDED FOR BY LAW, IT SHALL BE UNLAWFUL
 FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT, OR  ANY
 PERSON ENGAGED OR RETAINED BY SUCH DEPARTMENT ON AN INDEPENDENT CONTRACT
 BASIS OR ANY OTHER PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF THE
 CONTENTS OF A RETURN OR REPORT FILED PURSUANT TO THIS ARTICLE TO DIVULGE
 OR  MAKE  KNOWN  IN  ANY  MANNER THE   CONTENTS OR ANY OTHER INFORMATION
 RELATING TO THE BUSINESS OF A REGISTRANT   CONTAINED IN  ANY  RETURN  OR
 REPORT  REQUIRED  UNDER  THIS  ARTICLE.  THE OFFICERS   CHARGED WITH THE
 CUSTODY OF SUCH RETURNS OR REPORTS SHALL NOT BE REQUIRED TO PRODUCE  ANY
 OF  THEM  OR  EVIDENCE  OF  ANYTHING  CONTAINED IN THEM IN ANY ACTION OR
 PROCEEDING IN ANY COURT, EXCEPT  ON  BEHALF  OF  THE  STATE,  THE  STATE
 DEPARTMENT  OF  HEALTH, THE STATE DEPARTMENT OF EDUCATION OR THE COMMIS-
 SIONER IN AN ACTION OR  PROCEEDING UNDER THE PROVISIONS OF THIS  CHAPTER
 OR  ON  BEHALF  OF  THE STATE OR THE COMMISSIONER IN ANY OTHER ACTION OR
 PROCEEDING INVOLVING THE COLLECTION OF A TAX DUE UNDER THIS  CHAPTER  TO
 WHICH  THE  STATE  OR  THE  COMMISSIONER IS A PARTY OR A  CLAIMANT OR ON
 BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER THE  PROVISIONS OF
 THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR THE FACTS SHOWN THEREBY
 ARE DIRECTLY INVOLVED IN SUCH ACTION OR  PROCEEDING,  IN  ANY  OF  WHICH
 EVENTS  THE  COURT  MAY  REQUIRE  THE  PRODUCTION  OF,  AND MAY ADMIT IN
 EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE-
 BY AS ARE PERTINENT  TO THE ACTION OR PROCEEDING AND  NO  MORE.  NOTHING
 HEREIN  SHALL  BE CONSTRUED TO  PROHIBIT THE COMMISSIONER, IN HIS OR HER
 DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTIFIED COPY
 OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE, OR FROM PROVIDING  ANY
 INFORMATION  CONTAINED  IN  ANY SUCH RETURN OR   REPORT, BY OR TO A DULY
 AUTHORIZED OFFICER OR EMPLOYEE OF THE STATE DEPARTMENT  OF HEALTH OR THE
 STATE DEPARTMENT OF EDUCATION; NOR TO PROHIBIT THE INSPECTION OR  DELIV-
 ERY  OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS  ARTI-
 CLE, OR THE PROVISION OF ANY INFORMATION CONTAINED THEREIN, BY OR TO THE
 ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES OF  THE  STATE  WHEN  AN
 ACTION   SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAP-
 TER IN WHICH SUCH RETURNS OR REPORTS OR  THE  FACTS  SHOWN  THEREBY  ARE
 DIRECTLY  INVOLVED;  NOR TO  PROHIBIT THE COMMISSIONER FROM PROVIDING OR
 CERTIFYING TO THE DIVISION OF BUDGET OR THE COMPTROLLER THE TOTAL NUMBER
 OF RETURNS OR REPORTS FILED UNDER THIS ARTICLE IN ANY  REPORTING  PERIOD
 AND  THE  TOTAL  COLLECTIONS  RECEIVED  THEREFROM;   NOR TO PROHIBIT THE
 INSPECTION OF THE RETURNS OR REPORTS REQUIRED UNDER THIS  ARTICLE BY THE
 COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE  DEPART-
 MENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF  ANY
 TAX  PAID  BY  A  REGISTRANT  OR OTHER PERSON UNDER THIS ARTICLE; NOR TO
 PROHIBIT THE DELIVERY TO A REGISTRANT, OR A  DULY  AUTHORIZED  REPRESEN-
 TATIVE  OF  SUCH  REGISTRANT,  A  CERTIFIED COPY OF ANY RETURN OR REPORT
 FILED BY SUCH REGISTRANT  PURSUANT TO THIS ARTICLE, NOR TO PROHIBIT  THE
 PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION
 OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THEREOF.
   (B)(1) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS  OF  SUBDIVISION  (A) OF THIS SECTION SHALL BE DISMISSED FROM
 OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A
 PERIOD OF FIVE YEARS THEREAFTER.
   (2) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE  THIRTY-SEVEN
 OF THIS CHAPTER.

 S. 1509--C                         82                         A. 2009--C
 
   §  2. Section 1825 of the tax law, as amended by section 3 of part NNN
 of chapter 59 of the laws of 2018, is amended to read as follows:
   §  1825.  Violation  of secrecy provisions of the tax law.--Any person
 who violates the SECRECY provisions of [subdivision (b) of section twen-
 ty-one, subdivision one of section two hundred two, subdivision eight of
 section two hundred eleven, subdivision (a)  of  section  three  hundred
 fourteen,  subdivision  one or two of section four hundred thirty-seven,
 section four hundred eighty-seven, subdivision one  or  two  of  section
 five hundred fourteen, subsection (e) of section six hundred ninety-sev-
 en,  subsection (a) of section nine hundred ninety-four, subdivision (a)
 of section eleven hundred forty-six, section twelve hundred  eighty-sev-
 en,  section  twelve  hundred ninety-six, section twelve hundred ninety-
 nine-F, subdivision (a) of section fourteen hundred  eighteen,  subdivi-
 sion (a) of section fifteen hundred eighteen, subdivision (a) of section
 fifteen hundred fifty-five of] this chapter[, and] OR subdivision (e) of
 section 11-1797 of the administrative code of the city of New York shall
 be guilty of a misdemeanor.
   §  3.  Subdivision  1  of  section 171-a of the tax law, as amended by
 section 3 of part MM of chapter 59 of the laws of 2018,  is  amended  to
 read as follows:
   1.  All  taxes,  interest, penalties and fees collected or received by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A  (except  as  otherwise provided in section two hundred eighty-
 four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except as otherwise provided in section four hundred eighty-two  there-
 of),  twenty-B,  TWENTY-D,  twenty-one, twenty-two, twenty-four, twenty-
 six, twenty-eight  (except  as  otherwise  provided  in  section  eleven
 hundred  two  or  eleven hundred three thereof), twenty-eight-A, twenty-
 nine-B, thirty-one (except as otherwise  provided  in  section  fourteen
 hundred  twenty-one  thereof),  thirty-three  and thirty-three-A of this
 chapter shall be deposited daily in one account  with  such  responsible
 banks,  banking  houses  or  trust companies as may be designated by the
 comptroller, to the credit of the comptroller. Such an  account  may  be
 established  in one or more of such depositories. Such deposits shall be
 kept separate and apart from all other money in the  possession  of  the
 comptroller.  The  comptroller  shall require adequate security from all
 such depositories. Of the total revenue collected or received under such
 articles of this chapter, the comptroller  shall  retain  in  the  comp-
 troller's  hands  such  amount  as  the commissioner may determine to be
 necessary for refunds or reimbursements  under  such  articles  of  this
 chapter  out  of  which  amount the comptroller shall pay any refunds or
 reimbursements to which taxpayers shall be entitled under the provisions
 of such articles of this chapter. The commissioner and  the  comptroller
 shall  maintain  a  system  of  accounts  showing  the amount of revenue
 collected or received from each of the taxes imposed by  such  articles.
 The  comptroller,  after  reserving  the  amount  to pay such refunds or
 reimbursements, shall, on or before the tenth day  of  each  month,  pay
 into  the  state  treasury to the credit of the general fund all revenue
 deposited under this section during the  preceding  calendar  month  and
 remaining  to the comptroller's credit on the last day of such preceding
 month, (i) except that the comptroller shall pay to the state department
 of social services that amount of overpayments of tax imposed by article
 twenty-two of this chapter and the interest  on  such  amount  which  is

 S. 1509--C                         83                         A. 2009--C
 
 certified  to  the  comptroller  by the commissioner as the amount to be
 credited against past-due support pursuant to subdivision six of section
 one hundred seventy-one-c of this article,  (ii)  and  except  that  the
 comptroller  shall  pay  to the New York state higher education services
 corporation and the state university of New York or the city  university
 of  New  York respectively that amount of overpayments of tax imposed by
 article twenty-two of this chapter and the interest on such amount which
 is certified to the comptroller by the commissioner as the amount to  be
 credited  against  the  amount  of  defaults  in repayment of guaranteed
 student loans and state university loans or city university loans pursu-
 ant to subdivision five of section one hundred seventy-one-d and  subdi-
 vision  six  of section one hundred seventy-one-e of this article, (iii)
 and except further that, notwithstanding any law, the comptroller  shall
 credit   to   the   revenue   arrearage  account,  pursuant  to  section
 ninety-one-a of the state finance law, that amount of overpayment of tax
 imposed by article nine, nine-A, twenty-two, thirty, thirty-A,  thirty-B
 or  thirty-three  of  this  chapter,  and any interest thereon, which is
 certified to the comptroller by the commissioner as  the  amount  to  be
 credited  against  a  past-due  legally enforceable debt owed to a state
 agency pursuant to paragraph (a)  of  subdivision  six  of  section  one
 hundred seventy-one-f of this article, provided, however, he shall cred-
 it  to the special offset fiduciary account, pursuant to section ninety-
 one-c of the state finance law, any such amount creditable as a  liabil-
 ity  as  set  forth  in  paragraph (b) of subdivision six of section one
 hundred seventy-one-f of this article, (iv) and except further that  the
 comptroller shall pay to the city of New York that amount of overpayment
 of  tax  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A,
 thirty-B or thirty-three of this chapter and any interest  thereon  that
 is  certified to the comptroller by the commissioner as the amount to be
 credited against city of New York tax warrant judgment debt pursuant  to
 section  one  hundred  seventy-one-l  of  this  article,  (v) and except
 further that the comptroller shall pay to a  non-obligated  spouse  that
 amount of overpayment of tax imposed by article twenty-two of this chap-
 ter  and the interest on such amount which has been credited pursuant to
 section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
 hundred  seventy-one-e,  one hundred seventy-one-f or one hundred seven-
 ty-one-l of this article and which is certified to  the  comptroller  by
 the commissioner as the amount due such non-obligated spouse pursuant to
 paragraph six of subsection (b) of section six hundred fifty-one of this
 chapter;  and  (vi) the comptroller shall deduct a like amount which the
 comptroller shall pay into the treasury to the  credit  of  the  general
 fund  from  amounts  subsequently  payable  to  the department of social
 services, the state university of New York, the city university  of  New
 York,  or  the  higher  education  services  corporation, or the revenue
 arrearage account  or  special  offset  fiduciary  account  pursuant  to
 section  ninety-one-a  or  ninety-one-c of the state finance law, as the
 case may be, whichever had been credited the amount originally  withheld
 from  such  overpayment,  and  (vii)  with respect to amounts originally
 withheld from such overpayment pursuant to section one hundred  seventy-
 one-l  of this article and paid to the city of New York, the comptroller
 shall collect a like amount from the city of New York.
   § 4. Subdivision 1 of section 171-a of the  tax  law,  as  amended  by
 section  4  of  part MM of chapter 59 of the laws of 2018, is amended to
 read as follows:
   1. All taxes, interest, penalties and fees collected  or  received  by
 the commissioner or the commissioner's duly authorized agent under arti-

 S. 1509--C                         84                         A. 2009--C
 
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A (except as otherwise provided in section  two  hundred  eighty-
 four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except  as otherwise provided in section four hundred eighty-two there-
 of), TWENTY-D, twenty-one, twenty-two, twenty-four, twenty-six,  twenty-
 eight  (except  as  otherwise  provided in section eleven hundred two or
 eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one
 (except as otherwise provided in  section  fourteen  hundred  twenty-one
 thereof),  thirty-three  and  thirty-three-A  of  this  chapter shall be
 deposited daily in one account  with  such  responsible  banks,  banking
 houses  or  trust  companies as may be designated by the comptroller, to
 the credit of the comptroller. Such an account may be established in one
 or more of such depositories. Such deposits shall be kept  separate  and
 apart  from  all  other  money in the possession of the comptroller. The
 comptroller shall require adequate security from all such  depositories.
 Of  the  total revenue collected or received under such articles of this
 chapter, the comptroller shall retain in the  comptroller's  hands  such
 amount  as the commissioner may determine to be necessary for refunds or
 reimbursements under such articles of this chapter out of  which  amount
 the comptroller shall pay any refunds or reimbursements to which taxpay-
 ers  shall  be  entitled  under  the provisions of such articles of this
 chapter. The commissioner and the comptroller shall maintain a system of
 accounts showing the amount of revenue collected or received  from  each
 of  the taxes imposed by such articles. The comptroller, after reserving
 the amount to pay such refunds or reimbursements, shall,  on  or  before
 the  tenth  day of each month, pay into the state treasury to the credit
 of the general fund all revenue deposited under this section during  the
 preceding  calendar  month  and remaining to the comptroller's credit on
 the last day of such preceding month, (i) except  that  the  comptroller
 shall  pay  to  the  state  department of social services that amount of
 overpayments of tax imposed by article twenty-two of  this  chapter  and
 the interest on such amount which is certified to the comptroller by the
 commissioner  as  the  amount  to  be  credited against past-due support
 pursuant to subdivision six of section one hundred seventy-one-c of this
 article, (ii) and except that the comptroller shall pay to the New  York
 state  higher education services corporation and the state university of
 New York or the city university of New York respectively that amount  of
 overpayments  of  tax  imposed by article twenty-two of this chapter and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount to be credited against the amount of defaults
 in repayment of guaranteed student loans and state university  loans  or
 city  university  loans  pursuant  to  subdivision  five  of section one
 hundred seventy-one-d and subdivision six of section one hundred  seven-
 ty-one-e of this article, (iii) and except further that, notwithstanding
 any  law, the comptroller shall credit to the revenue arrearage account,
 pursuant to section ninety-one-a of the state finance law,  that  amount
 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
 thereon,  which  is  certified to the comptroller by the commissioner as
 the amount to be credited against a past-due  legally  enforceable  debt
 owed  to  a state agency pursuant to paragraph (a) of subdivision six of
 section one hundred seventy-one-f of this article, provided, however, he
 shall credit to  the  special  offset  fiduciary  account,  pursuant  to
 section  ninety-one-c of the state finance law, any such amount credita-

 S. 1509--C                         85                         A. 2009--C

 ble as a liability as set forth in paragraph (b) of subdivision  six  of
 section  one  hundred  seventy-one-f  of  this  article, (iv) and except
 further that the comptroller shall pay to the  city  of  New  York  that
 amount  of  overpayment  of tax imposed by article nine, nine-A, twenty-
 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and  any
 interest thereon that is certified to the comptroller by the commission-
 er  as  the  amount  to be credited against city of New York tax warrant
 judgment debt pursuant to section  one  hundred  seventy-one-l  of  this
 article,  (v)  and  except  further  that the comptroller shall pay to a
 non-obligated spouse that amount of overpayment of tax imposed by  arti-
 cle twenty-two of this chapter and the interest on such amount which has
 been credited pursuant to section one hundred seventy-one-c, one hundred
 seventy-one-d,  one  hundred seventy-one-e, one hundred seventy-one-f or
 one hundred seventy-one-l of this article and which is certified to  the
 comptroller  by  the  commissioner  as the amount due such non-obligated
 spouse pursuant to paragraph  six  of  subsection  (b)  of  section  six
 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
 a  like  amount which the comptroller shall pay into the treasury to the
 credit of the general fund from  amounts  subsequently  payable  to  the
 department  of  social  services,  the state university of New York, the
 city university of New York, or the  higher  education  services  corpo-
 ration,  or  the  revenue  arrearage account or special offset fiduciary
 account pursuant to section ninety-one-a or ninety-one-c  of  the  state
 finance  law, as the case may be, whichever had been credited the amount
 originally withheld from such overpayment, and  (vii)  with  respect  to
 amounts  originally  withheld  from such overpayment pursuant to section
 one hundred seventy-one-l of this article and paid to the  city  of  New
 York,  the  comptroller shall collect a like amount from the city of New
 York.
   § 5. Section 5 of part NN of chapter 57 of the laws of 2018,  amending
 the public health law and the state finance law relating to enacting the
 opioid stewardship act, is amended to read as follows:
   §  5.  This act shall take effect July 1, 2018 and shall expire and be
 deemed to be repealed on June 30, 2024, provided that,  effective  imme-
 diately, the addition, amendment and/or repeal of any rule or regulation
 necessary  for  the implementation of this act on its effective date are
 authorized to be made and completed on or before  such  effective  date,
 AND, PROVIDED THAT THIS ACT SHALL ONLY APPLY TO THE SALE OR DISTRIBUTION
 OF OPIOIDS IN THE STATE OF NEW YORK ON OR BEFORE DECEMBER 31, 2018.
   §  6. This act shall take effect July 1, 2019; provided, however, that
 the amendments to subdivision 1 of section 171-a of the tax law made  by
 section three of this act shall not affect the expiration of such subdi-
 vision and shall expire therewith, when upon such date the provisions of
 section four of this act shall take effect.
 
                                  PART YY
 
   Section  1.  Subsections (b) and (c) of section 857 of the tax law, as
 added by section 1 of part MM of chapter 59 of the  laws  of  2018,  are
 amended to read as follows:
   (b) [Notwithstanding the provisions of section six hundred ninety-sev-
 en  of  this  chapter,  if  the commissioner determines that a person is
 liable for any tax, penalty or interest under this article  pursuant  to
 subsection (b) of section eight hundred fifty-four of this article, upon
 request  in  writing  of such person, the commissioner shall disclose in
 writing to such person (1) the name of any other person the commissioner

 S. 1509--C                         86                         A. 2009--C

 has determined to be liable for such tax, penalty or interest under this
 article for the electing employer, and (2) whether the commissioner  has
 attempted  to  collect  such  tax,  penalty  or interest from such other
 person  or  electing  employer,  the  general  nature of such collection
 activities, and the amount collected.
   (c)] Notwithstanding any other law to the contrary,  the  commissioner
 may require that all filings of forms or returns under this article must
 be  filed  electronically and all payments of tax must be paid electron-
 ically. The commissioner may prescribe the methods for quarterly filings
 by electing employers, including but not limited to,  the  inclusion  of
 specific employee-level detail.
   § 2. Subsection (d) of section 850 of the tax law, as added by section
 1  of  part  MM of chapter 59 of the laws of 2018, is amended to read as
 follows:
   (d) Covered employee. Covered employee means an employee of an  elect-
 ing  employer  who  is  EMPLOYED  IN  NEW  YORK, WHO IS required to have
 amounts withheld under section six hundred seventy-one of this  chapter,
 and  WHO receives annual wages and compensation from his or her employer
 of more than forty thousand dollars  annually.    THE  DETERMINATION  OF
 WHETHER  AN  EMPLOYEE  IS  A COVERED EMPLOYEE UNDER THIS ARTICLE WILL BE
 MADE BY UTILIZING THE RULES APPLICABLE TO THE JURISDICTION OF EMPLOYMENT
 FOR PURPOSES OF THE STATEWIDE WAGE REPORTING SYSTEM  UNDER  SECTION  ONE
 HUNDRED SEVENTY-ONE-A OF THIS CHAPTER.
   §  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after the  effective  date  of
 part MM of chapter 59 of the laws of 2018.
 
                                  PART ZZ
 
   Section  1.  The  opening paragraph of subdivision 7 of section 221 of
 the racing, pari-mutuel wagering and breeding law, as amended by section
 1 of part NN of chapter 59 of the laws of 2018, is amended  to  read  as
 follows:
   In  order  to  pay the costs of the insurance required by this section
 and by the workers' compensation law and to carry out its  other  powers
 and  duties  and  to  pay for any of its liabilities under section four-
 teen-a of the workers' compensation law,  the  New  York  Jockey  Injury
 Compensation  Fund, Inc. shall ascertain the total funding necessary and
 establish the sums that are to  be  paid  by  all  owners  and  trainers
 licensed  or required to be licensed under section two hundred twenty of
 this article, to obtain the total funding amount required  annually.  In
 order to provide that any sum required to be paid by an owner or trainer
 is  equitable,  the fund shall establish payment schedules which reflect
 such  factors  as  are  appropriate,  including  where  applicable,  the
 geographic  location  of  the  racing  corporation at which the owner or
 trainer participates, the duration of such participation, the amount  of
 any purse earnings, the number of horses involved, or such other factors
 as the fund shall determine to be fair, equitable and in the best inter-
 ests  of  racing.  In no event shall the amount deducted from an owner's
 share of purses exceed two per centum; provided, however, for two  thou-
 sand  [eighteen]  NINETEEN the New York Jockey Injury Compensation Fund,
 Inc.  may use up to two million dollars  from  the  account  established
 pursuant  to subdivision nine of section two hundred eight of this arti-
 cle to pay the annual costs required by this section and the funds  from
 such  account  shall  not  count  against  the  two per centum of purses
 deducted from an owner's share of purses. The amount  deducted  from  an

 S. 1509--C                         87                         A. 2009--C
 
 owner's  share  of  purses  shall  not exceed one per centum after April
 first, two thousand twenty. In the  cases  of  multiple  ownerships  and
 limited  racing  appearances,  the  fund  shall equitably adjust the sum
 required.
   §  2.  Paragraph  (a)  of  subdivision 9 of section 208 of the racing,
 pari-mutuel wagering and breeding law, as amended by section 2  of  part
 NN of chapter 59 of the laws of 2018, is amended to read as follows:
   (a)  The  franchised corporation shall maintain a separate account for
 all funds held on deposit in trust by  the  corporation  for  individual
 horsemen's  accounts.  Purse  funds  shall be paid by the corporation as
 required to meet its purse payment obligations. Funds held in horsemen's
 accounts shall only be released or applied as requested and directed  by
 the  individual  horseman.  For two thousand [eighteen] NINETEEN the New
 York Jockey Injury Compensation Fund, Inc. may use  up  to  two  million
 dollars from the account established pursuant to this subdivision to pay
 the  annual  costs  required  by  section two hundred twenty-one of this
 article.
   § 3. This act shall take effect immediately.
 
                                 PART AAA
 
   Section 1. Section 28 of the tax law, as added by section 2 of part  V
 of  chapter  62  of  the laws of 2006, paragraph 1 of subdivision (a) as
 amended by chapter 518 of the laws of 2018, paragraph 2  of  subdivision
 (a)  as  amended by chapter 300 of the laws of 2007, subparagraph (i) of
 paragraph 2 of subdivision (a) as amended by section  2  of  part  I  of
 chapter  59  of  the  laws of 2012, subparagraph (iii) of paragraph 2 of
 subdivision (a) as amended by section 2 of part O of chapter 59  of  the
 laws  of  2014,  paragraph  3  of subdivision (a) and subdivision (d) as
 amended by section 45 of part A of chapter 59 of the laws of 2014, para-
 graph 4 of subdivision (a) as separately amended by section 45 of part A
 and section 6 of part S of chapter 59 of the laws of 2014,  paragraph  2
 of subdivision (b) as amended by chapter 448 of the laws of 2009, subdi-
 vision  (c)  as  added and subdivision (d) as relettered by section 2 of
 part J of chapter 59 of the laws of 2015, is amended to read as follows:
   § 28. Empire state commercial  production  credit.  (a)  Allowance  of
 credit. (1) A taxpayer which is a qualified commercial production compa-
 ny,  or  which is a sole proprietor of a qualified commercial production
 company, and which is subject to tax under article nine-A or  twenty-two
 of this chapter, shall be allowed a credit against such tax, pursuant to
 the  provisions  referenced  in  subdivision  (c) of this section, to be
 computed as provided in this section. Provided, however, to be  eligible
 for  such  credit, at least seventy-five percent of the production costs
 (excluding post production costs) paid or incurred directly and predomi-
 nantly in the actual filming or recording of  the  qualified  commercial
 must  be costs incurred in New York state. The tax credit allowed pursu-
 ant to this section shall apply to taxable years beginning before  Janu-
 ary first, two thousand twenty-four.
   (2)  The state has annually seven million dollars in total tax credits
 to disburse to all eligible commercial production companies.  The  seven
 million  dollars  in  total  tax credits shall be allocated according to
 subparagraphs (i)[,] AND (ii) [and (iii)] of this paragraph:
   (i) [The state annually will disburse one million of the  total  seven
 million  in  tax  credits  to  all eligible production companies and the
 amount of the credit shall be the product (or  pro  rata  share  of  the
 product,  in the case of a member of a partnership) of twenty percent of

 S. 1509--C                         88                         A. 2009--C

 the qualified production costs paid or incurred in the production  of  a
 qualified  commercial, provided that the qualified production costs paid
 or incurred are attributable to the use  of  tangible  property  or  the
 performance of services within the state in the production of such qual-
 ified  commercial.  To  be  eligible for said credit the total qualified
 production costs of a qualified production company must  be  greater  in
 the  aggregate  during the current calendar year than the average of the
 three previous years for which the credit was applied. Provided,  howev-
 er,  that  until  a qualified production company has established a three
 year history, the credit will be based on either the  previous  year  or
 the  average  of  the two previous years, whichever period is longer for
 the qualified production company seeking the credit.  If  the  qualified
 production company has never applied for the growth credit, the previous
 year's  data will be used to create a benchmark. The tax credit shall be
 applied only to the amount of the total qualified  production  costs  of
 the  current  calendar  year  that  are greater than the total amount of
 production costs of the appropriate measurement period as  described  in
 this  subparagraph.  The  tax  credit  must  be  distributed to eligible
 production companies on a pro rata basis,  provided,  however,  that  no
 such  qualified production company shall receive more than three hundred
 thousand dollars annually for such credit. The credit shall  be  allowed
 for  the  taxable year in which the production of such qualified commer-
 cial is completed.
   (ii)] The state annually will disburse [three]  FOUR  million  of  the
 total  seven million in tax credits to all eligible production companies
 who film or record qualified commercials within the metropolitan  commu-
 ter  transportation district as defined in section twelve hundred sixty-
 two of the public authorities law. The amount of the credit shall be the
 product (or pro rata share of the product, in the case of a member of  a
 partnership)  of [five] TWENTY percent of the qualified production costs
 paid or incurred in the production of a qualified  commercial,  provided
 that the qualified production costs paid or incurred are attributable to
 the  use  of tangible property or the performance of services within the
 state in the production of such qualified commercial. To be eligible for
 said  credit  the  total  qualified  production  costs  of  a  qualified
 production company must be greater than five hundred thousand dollars in
 the  aggregate  during the calendar year. Such credit will be applied to
 qualified production costs exceeding five hundred thousand dollars in  a
 calendar year.
   [(iii)]  (II)  The  state  annually will disburse three million of the
 total seven million in tax credits to all eligible production  companies
 who  film  or  record a qualified commercial outside of the metropolitan
 commuter transportation district as defined in  section  twelve  hundred
 sixty-two  of  the  public  authorities law; provided, however, that if,
 after July thirty-first the state reviews all applications from eligible
 production companies who film or record a qualified  commercial  outside
 of  the  metropolitan  commuter  district  for a given year, tax credits
 remain unallocated under  this  subparagraph,  those  credits  shall  be
 allotted  to the credits set forth in subparagraph (i) of this paragraph
 for use consistent with the purposes of such subparagraph. The amount of
 the credit shall be the product (or pro rata share of  the  product,  in
 the  case  of a member of a partnership) of [five] THIRTY percent of the
 qualified production costs paid or incurred in the production of a qual-
 ified commercial, provided that the qualified production costs  paid  or
 incurred  are  attributable  to  the  use  of  tangible  property or the
 performance of services within the state in the production of such qual-

 S. 1509--C                         89                         A. 2009--C

 ified commercial. To be eligible for said  credit  the  total  qualified
 production  costs of a qualified production company must be greater than
 one hundred thousand dollars in the aggregate during the calendar  year.
 Such credit will be applied to ALL qualified production costs [exceeding
 one hundred thousand dollars] in a calendar year.
   (3)  No  qualified  production  costs used by a taxpayer either as the
 basis for the allowance of the credit provided for under this section or
 used in the calculation of the credit provided for  under  this  section
 shall  be used by such taxpayer to claim any other credit allowed pursu-
 ant to this chapter.
   (4) Notwithstanding any provisions of this section to the contrary,  a
 corporation  or  partnership,  which  otherwise qualifies as a qualified
 commercial production company, and is similar in operation and in owner-
 ship to a business entity or entities taxable,  or  previously  taxable,
 under  section  one  hundred  eighty-three or one hundred eighty-four or
 former section one hundred eighty-five of article nine;  article  nine-A
 or  thirty-three of this chapter or which would have been subject to tax
 under article twenty-three of this  chapter  (as  such  article  was  in
 effect  on  January  first, nineteen hundred eighty) or which would have
 been subject to tax under article thirty-two of this  chapter  (as  such
 article  was  in effect on December thirty-first, two thousand fourteen)
 or the income or losses of which is  or  was  includable  under  article
 twenty-two  of  this chapter shall not be deemed a new or separate busi-
 ness, and therefore shall not be eligible for  empire  state  commercial
 production  benefits, if it was not formed for a valid business purpose,
 as such term is defined in clause (D) of subparagraph one  of  paragraph
 (o) of subdivision nine of section two hundred eight of this chapter and
 was  formed  solely  to  gain  empire state commercial production credit
 benefits.
   (b) Definitions. As used in this section, the  following  terms  shall
 have the following meanings:
   (1)  "Qualified  production  costs" means production costs only to the
 extent such costs are attributable to the use of  tangible  property  or
 the  performance of services within the state directly and predominantly
 in the production (including pre-production and  post-production)  of  a
 qualified commercial.
   (2)  "Production costs" means any costs for tangible property used and
 services performed directly and predominantly in the production (includ-
 ing pre-production  and  post-production)  of  a  qualified  commercial.
 "Production  costs"  shall  not include (i) costs for a story, script or
 scenario to be used for a qualified commercial and (ii) wages  or  sala-
 ries  or  other  compensation  for  writers,  directors, including music
 directors, producers and performers (other than background  actors  with
 no  scripted  lines  who  are  employed by a qualified company and musi-
 cians).  "Production  costs"  generally  include  technical   and   crew
 production costs, such as expenditures for commercial production facili-
 ties  and/or location costs, or any part thereof, film, audiotape, vide-
 otape or digital medium, props, makeup, wardrobe, commercial processing,
 camera, sound recording, scoring, set construction, lighting,  shooting,
 editing and meals. For purposes of this section, "post production costs"
 include  the  production  of original content for a qualified commercial
 employing techniques traditionally used in  post-production  for  visual
 effects,  graphic  design,  animation, and musical composition. However,
 where the commercial consists in its  entirety  of  techniques  such  as
 visual effects, graphic design, or animation, such costs incurred in the
 production  of  the  commercial,  when  occurring  in New York, shall be

 S. 1509--C                         90                         A. 2009--C
 
 deemed qualified production costs for  the  purposes  of  this  section.
 Provided  further,  however,  that  "post  production  costs"  shall not
 include the editing of  previously  produced  content  for  a  qualified
 commercial.
   (3)  "Qualified  commercial" means an advertisement OF ANY LENGTH that
 is recorded on film, audiotape, videotape or digital medium in New  York
 for  multi-market  distribution  by  way  of radio, television networks,
 cable, satellite [or], motion picture theaters OR  INTERNET.  "Qualified
 commercial"  shall  not  include  (i)  news  or current affairs program,
 interview or talk program, network promos, i.e.,  commercials  promoting
 television  series  or movies, "how-to" (i.e., instructional) commercial
 or program, commercial or program consisting entirely of stock  footage,
 trailers promoting theatrical films, sporting event or sporting program,
 game  show,  award ceremony, daytime drama (i.e., daytime "soap opera"),
 or "reality" program,  or  (ii)  a  production  for  which  records  are
 required under section 2257 of title 18, United States code, to be main-
 tained  with  respect  to any performer in such production (reporting of
 books, commercials, etc. with respect to sexually explicit conduct).
   (4) "Qualified commercial production company" is a corporation,  part-
 nership, limited partnership, or other entity or individual which or who
 is  principally  engaged in the production of a qualified commercial and
 controls the production of the  qualified  commercial  and  is  not  the
 distributor,   or   THE   contracting  entity  for  production  of  such
 commercial, NOR IS A VARIABLE INTEREST ENTITY  OF  SUCH  DISTRIBUTOR  OR
 CONTRACTING ENTITY.
   (c)  The department of economic development shall submit, on or before
 December first of each year, to the governor, the director of the  divi-
 sion  of  the  budget,  the  temporary  president of the senate, and the
 speaker of the assembly an annual report including, but not limited  to,
 the following information regarding the previous calendar year:
   (1) the total dollar amount of credits allocated, the name and address
 of  each qualified commercial production company allocated credits under
 this section, the total amount of credits allocated  to  each  qualified
 commercial  production company, the total amount of qualified production
 costs and production costs  for  each  qualified  commercial  production
 company,  and  the  estimated  number  of employees, credit-eligible man
 hours, and credit-eligible wages associated with each qualified  commer-
 cial production company allocated credits under this section;
   (2)  for qualified commercial production companies that were allocated
 credit pursuant to subparagraph [(ii)] (I) of paragraph two of  subdivi-
 sion (a) of this section: the name and address of each qualified commer-
 cial  production  company, the total dollar amount of credits allocated,
 the total amount of  credits  allocated  to  each  qualified  commercial
 production  company,  total  qualified  production  costs and production
 costs for each qualified production company, and the estimated number of
 employees, credit-eligible man hours, and credit-eligible wages  associ-
 ated  with  each  qualified commercial production company that filmed or
 recorded a qualified commercial within the district;
   (3) for qualified commercial production companies that were  allocated
 credit  pursuant to subparagraph [(iii)] (II) of paragraph two of subdi-
 vision (a) of this section: the  name  and  address  of  each  qualified
 commercial  production company, the total dollar amount of credits allo-
 cated, the total amount of credits allocated to each  qualified  commer-
 cial production company, total qualified production costs and production
 costs for each qualified production company, and the estimated number of
 employees,  credit-eligible man hours, and credit-eligible wages associ-

 S. 1509--C                         91                         A. 2009--C
 
 ated with each qualified commercial production company  that  filmed  or
 recorded a qualified commercial outside the district; and
   (4)  the  amount  of  credits  reallocated  to  all eligible qualified
 commercial production companies pursuant to subparagraph [(iii)] (II) of
 paragraph two of subdivision (a) of this section.
   (5) The report may also include any recommendations for changes in the
 calculation or administration of the credit,  recommendations  regarding
 continuing modification or repeal of this credit, and any other informa-
 tion regarding this credit as may be useful and appropriate.
   (d)  Cross-references.  For  application of the credit provided for in
 this section, see the following provision of this chapter:
   (1) article 9-A: section 210-B: subdivision 23.
   (2) article 22: section 606: subsection (jj).
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.
 
                                 PART BBB
 
   Section 1. The opening paragraph of subsection (b) of section  619  of
 the  tax  law, as amended by chapter 243 of the laws of 1967, is amended
 to read as follows:
   The New York fiduciary adjustment shall  be  the  net  amount  of  the
 modifications   described  in  section  six  hundred  twelve  (including
 subsection (d) if the estate or trust is a beneficiary of another estate
 or trust), [and] in  subsection  (c)  and  paragraphs  (2)  and  (3)  of
 subsection  (d) of section six hundred fifteen, AND IN SUBSECTION (E) OF
 THIS SECTION, which relate to items of income, gain, loss  or  deduction
 of  an  estate  or trust. The net amount of such modifications shall not
 include:
   § 2. Section 619 of the tax law is amended by adding a new  subsection
 (e) to read as follows:
   (E) ADDITIONAL MODIFICATIONS. (1) FOR ANY TAXABLE YEAR BEGINNING AFTER
 DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN, AND BEFORE JANUARY FIRST,
 TWO  THOUSAND TWENTY-SIX, TO THE EXTENT THAT THE ESTATE OR TRUST CLAIMED
 A DEDUCTION FOR TAXES UNDER SECTION 164 OF  THE  INTERNAL  REVENUE  CODE
 THAT  WAS  LIMITED  TO  TEN  THOUSAND  DOLLARS  AS  PROVIDED  IN SECTION
 164(B)(6)(B) OR WAS DENIED AS A RESULT OF  SECTION  164(B)(6)(A),  THERE
 SHALL BE SUBTRACTED THE TAXES PAID OR ACCRUED IN THAT TAXABLE YEAR BY AN
 ESTATE  OR  TRUST  THAT  THE  ESTATE OR TRUST WAS NOT ABLE TO DEDUCT FOR
 FEDERAL INCOME TAX PURPOSES BECAUSE OF SUCH LIMITATION OR DENIAL,  OTHER
 THAN STATE AND LOCAL SALES TAXES AND INCOME TAXES DESCRIBED IN PARAGRAPH
 ONE  OF  SUBSECTION  (C) OF SECTION SIX HUNDRED FIFTEEN OF THIS PART. IN
 DETERMINING THE MAKEUP OF THE TEN THOUSAND DOLLARS OF DEDUCTION  CLAIMED
 BY  THE  ESTATE OR TRUST UNDER SECTION 164 OF THE INTERNAL REVENUE CODE,
 IT SHALL BE PRESUMED THAT THE TEN THOUSAND DOLLARS  OF  DEDUCTION  FIRST
 COMPRISES  THE STATE AND LOCAL SALES TAXES OR INCOME TAXES THE ESTATE OR
 TRUST ACCRUED OR PAID DURING THE TAXABLE YEAR.
   (2) FOR ANY TAXABLE YEAR BEGINNING AFTER  DECEMBER  THIRTY-FIRST,  TWO
 THOUSAND  SEVENTEEN,  AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
 THERE SHALL BE  SUBTRACTED  THE  MISCELLANEOUS  ITEMIZED  DEDUCTIONS  AS
 DESCRIBED IN AND LIMITED BY SECTION 67 OF THE INTERNAL REVENUE CODE (BUT
 EXCLUDING THE DEDUCTIONS DESCRIBED IN SUBSECTION (E) OF SECTION 67), BUT
 DETERMINED WITHOUT REGARD TO SUBSECTION (G) OF SUCH SECTION.
   (3)  FOR  ANY  TAXABLE  YEAR,  THERE  SHALL BE ADDED THE AMOUNT OF ANY
 DEDUCTION ALLOWED PURSUANT TO SECTION 199A OF THE INTERNAL REVENUE CODE.

 S. 1509--C                         92                         A. 2009--C
 
   § 3. The opening paragraph of subdivision (b) of  section  11-1719  of
 the  administrative  code of the city of New York, as amended by chapter
 639 of the laws of 1986, is amended to read as follows:
   The city fiduciary adjustment shall be the net amount of the modifica-
 tions  described  in  section  11-1712 (including subdivision (d) if the
 estate or trust is a beneficiary of another estate or trust),  [and]  in
 subdivision  (c)  and  paragraphs  two  and  three of subdivision (d) of
 section 11-1715, AND IN SUBDIVISION (E) OF THIS SECTION, which relate to
 items of income, gain, loss or deduction of an estate or trust. The  net
 amount of such modifications shall not include:
   §  4.  Section  11-1719  of the administrative code of the city of New
 York is amended by adding a new subdivision (e) to read as follows:
   (E) ADDITIONAL MODIFICATIONS. (1) FOR ANY TAXABLE YEAR BEGINNING AFTER
 DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN, AND BEFORE JANUARY FIRST,
 TWO THOUSAND TWENTY-SIX, TO THE EXTENT THAT THE ESTATE OR TRUST  CLAIMED
 A  DEDUCTION  FOR  TAXES  UNDER SECTION 164 OF THE INTERNAL REVENUE CODE
 THAT WAS  LIMITED  TO  TEN  THOUSAND  DOLLARS  AS  PROVIDED  IN  SECTION
 164(B)(6)(B)  OR  WAS  DENIED AS A RESULT OF SECTION 164(B)(6)(A), THERE
 SHALL BE SUBTRACTED THE TAXES PAID OR ACCRUED IN THAT TAXABLE YEAR BY AN
 ESTATE OR TRUST THAT THE ESTATE OR TRUST WAS  NOT  ABLE  TO  DEDUCT  FOR
 FEDERAL  INCOME TAX PURPOSES BECAUSE OF SUCH LIMITATION OR DENIAL, OTHER
 THAN STATE AND LOCAL SALES TAXES AND INCOME TAXES DESCRIBED IN PARAGRAPH
 ONE OF SUBDIVISION (C) OF SECTION 11-1715 OF THIS SUBCHAPTER. IN  DETER-
 MINING  THE  MAKEUP  OF THE TEN THOUSAND DOLLARS OF DEDUCTION CLAIMED BY
 THE ESTATE OR TRUST UNDER SECTION 164 OF THE INTERNAL REVENUE  CODE,  IT
 SHALL  BE  PRESUMED  THAT  THE  TEN  THOUSAND DOLLARS OF DEDUCTION FIRST
 COMPRISES THE STATE AND LOCAL SALES TAXES OR INCOME TAXES THE ESTATE  OR
 TRUST ACCRUED OR PAID DURING THE TAXABLE YEAR.
   (2)  FOR  ANY  TAXABLE YEAR BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
 THOUSAND SEVENTEEN, AND BEFORE JANUARY FIRST, TWO  THOUSAND  TWENTY-SIX,
 THERE  SHALL  BE  SUBTRACTED  THE  MISCELLANEOUS  ITEMIZED DEDUCTIONS AS
 DESCRIBED IN AND LIMITED BY SECTION 67 OF THE INTERNAL REVENUE CODE (BUT
 EXCLUDING THE DEDUCTIONS DESCRIBED IN SUBSECTION (E) OF SECTION 67), BUT
 DETERMINED WITHOUT REGARD TO SUBSECTION (G) OF SUCH SECTION.
   (3) FOR ANY TAXABLE YEAR, THERE SHALL  BE  ADDED  THE  AMOUNT  OF  ANY
 DEDUCTION ALLOWED PURSUANT TO SECTION 199A OF THE INTERNAL REVENUE CODE.
   § 5. This act shall take effect immediately.
 
                                 PART CCC
 
   Section  1.  Paragraph 1 of subdivision (a) of section 1115 of the tax
 law, as amended by section 1 of part II of chapter 59  of  the  laws  of
 2014, is amended to read as follows:
   (1)  (A)  Food,  food  products,  beverages,  dietary foods and health
 supplements, sold for human consumption but not including (i) candy  and
 confectionery, (ii) fruit drinks which contain less than seventy percent
 of  natural  fruit juice, (iii) soft drinks, sodas and beverages such as
 are ordinarily dispensed at soda fountains or  in  connection  therewith
 (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol-
 ic  beverages,  all  of  which  shall be subject to the retail sales and
 compensating use taxes, whether or not the item is sold in liquid  form.
 NOTHING  IN  THIS  SUBPARAGRAPH  SHALL BE CONSTRUED AS EXEMPTING FOOD OR
 DRINK FROM THE TAX IMPOSED  UNDER  SUBDIVISION  (D)  OF  SECTION  ELEVEN
 HUNDRED FIVE OF THIS ARTICLE.
   [The]  (B)  UNTIL  MAY THIRTY FIRST, TWO THOUSAND TWENTY-ONE, THE food
 and drink excluded from the exemption provided by [this paragraph  under

 S. 1509--C                         93                         A. 2009--C

 subparagraphs]  CLAUSES  (i), (ii) and (iii) OF SUBPARAGRAPH (A) of this
 paragraph, AND BOTTLED WATER, shall be  exempt  under  this  [paragraph]
 SUBPARAGRAPH  when  sold  for one dollar and fifty cents or less through
 any  vending  machine  [activated by the use of] THAT ACCEPTS coin[,] OR
 currency[, credit card or debit card] ONLY OR WHEN SOLD FOR TWO  DOLLARS
 OR  LESS  THROUGH  ANY  VENDING MACHINE THAT ACCEPTS ANY FORM OF PAYMENT
 OTHER THAN COIN OR CURRENCY, WHETHER OR NOT  IT  ALSO  ACCEPTS  COIN  OR
 CURRENCY. [With the exception of the provision in this paragraph provid-
 ing  for  an exemption for certain food or drink sold for one dollar and
 fifty cents or less through vending machines, nothing  herein  shall  be
 construed as exempting food or drink from the tax imposed under subdivi-
 sion (d) of section eleven hundred five of this article.]
   § 2. This act shall take effect June 1, 2019, and shall apply to sales
 made and uses occurring on and after such date.
 
                                 PART DDD
 
   Section  1.  Paragraph 1 of subdivision (a) of section 1132 of the tax
 law, as amended by chapter 255 of the laws of 1998, is amended  to  read
 as follows:
   (1)  [Every]  EXCEPT  AS  OTHERWISE  PERMITTED  IN  SUBDIVISION (D) OF
 SECTION ELEVEN HUNDRED THIRTY-THREE OF THIS PART, EVERY person  required
 to collect the tax shall collect the tax from the customer when collect-
 ing  the  price,  amusement  charge  or rent to which it applies. If the
 customer is given any sales slip, invoice, receipt or other statement or
 memorandum of the price, amusement charge or rent paid or  payable,  the
 tax  shall  be stated, charged and shown separately on the first of such
 documents given to him. The tax shall be paid to the person required  to
 collect it as trustee for and on account of the state.
   § 2. Subdivision (d) of section 1133 of the tax law, as added by chap-
 ter 93 of the laws of 1965, is amended to read as follows:
   (d)  (1) no person required to collect any tax imposed by this article
 shall advertise or hold out to the public in  any  manner,  directly  or
 indirectly, that the tax IMPOSED BY THIS ARTICLE is not considered as an
 element  in  the  price,  amusement charge or rent payable by customers.
 HOWEVER, SUCH PERSON REQUIRED TO COLLECT TAX MAY ADVERTISE, HOLD OUT, OR
 STATE TO A RETAIL PURCHASER OR TO THE PUBLIC, THAT SUCH PERSON WILL  PAY
 THE TAX IMPOSED BY SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE ON BEHALF
 OF A RETAIL PURCHASER, SUBJECT TO THE FOLLOWING CONDITIONS:
   (I)  IN  SO ADVERTISING, HOLDING OUT, OR STATING TO A RETAIL PURCHASER
 OR TO THE PUBLIC, SUCH PERSON REQUIRED TO COLLECT  TAX  SHALL  EXPRESSLY
 STATE  ON  EVERY  BILL,  MEMORANDUM,  RECEIPT  OR OTHER STATEMENT OF THE
 PRICE, AMUSEMENT CHARGE OR RENT PAID OR PAYABLE GIVEN TO SUCH PURCHASER,
 THAT SUCH PERSON WILL PAY THE TAX IMPOSED BY SECTION ELEVEN HUNDRED FIVE
 OF THIS ARTICLE ON BEHALF OF SUCH PURCHASER, AND SUCH PERSON  SHALL  NOT
 INDICATE  OR  IMPLY  THAT THE TRANSACTION IS EXEMPT OR EXCLUDED FROM ANY
 TAX IMPOSED BY THIS ARTICLE; AND
   (II) EVERY BILL, MEMORANDUM, RECEIPT OR OTHER STATEMENT OF THE  PRICE,
 AMUSEMENT  CHARGE  OR RENT PAID OR PAYABLE GIVEN TO SUCH PURCHASER SHALL
 SEPARATELY STATE THE AMOUNT OF TAX DUE PURSUANT TO SUCH  SECTION  ELEVEN
 HUNDRED  FIVE  AND  THAT  THE TAX WAS NOT COLLECTED FROM SUCH PURCHASER.
 SUCH PERSON REQUIRED TO COLLECT TAX SHALL HOLD SUCH TAX AS  TRUSTEE  FOR
 AND ON ACCOUNT OF THE STATE; AND
   (III)  A  RETAIL  PURCHASER,  WHO  IN GOOD FAITH ACCEPTS FROM A PERSON
 REQUIRED TO COLLECT ANY TAX IMPOSED BY THIS ARTICLE, A BILL, MEMORANDUM,
 RECEIPT OR OTHER STATEMENT OF THE PRICE, AMUSEMENT CHARGE OR  RENT  THAT

 S. 1509--C                         94                         A. 2009--C
 
 INDICATES  THE AMOUNT OF TAX DUE PURSUANT TO SUCH SECTION ELEVEN HUNDRED
 FIVE AND THAT SUCH PERSON REQUIRED TO COLLECT TAX WILL  BE  PAYING  SUCH
 TAX ON BEHALF OF SUCH PURCHASER, SHALL NOT BE LIABLE FOR THE TAX IMPOSED
 BY SUCH SECTION ELEVEN HUNDRED FIVE, OR ANY INTEREST OR PENALTIES THERE-
 ON; PROVIDED, HOWEVER THAT NOTHING IN THIS SUBDIVISION SHALL EXEMPT SUCH
 PURCHASER FROM ANY ADDITIONAL TAX DUE PURSUANT TO SECTION ELEVEN HUNDRED
 TEN OF THIS ARTICLE.
   §  3.  Subdivision  (d)  of section 1817 of the tax law, as amended by
 section 30 of subpart I of part V-1 of chapter 57 of the laws  of  2009,
 is amended to read as follows:
   (d)  Any  person  (1) who willfully fails to charge separately the tax
 imposed under article twenty-eight of this chapter or to state such  tax
 separately  on  any  bill,  statement, memorandum [or], receipt OR OTHER
 STATEMENT issued or employed by  him  OR  HER  upon  which  the  tax  is
 required  to  be  stated  separately  as  provided in subdivision (a) of
 section eleven hundred thirty-two of this  chapter;  or  (2)  who  shall
 refer  or  cause  reference  to  be made to such tax in a form or manner
 other than that required by such article twenty-eight, shall  be  guilty
 of  a  misdemeanor. PROVIDED HOWEVER, THAT A PERSON WHO HAS PAID THE TAX
 ON BEHALF OF A RETAIL  PURCHASER  AS  PROVIDED  IN  SUBDIVISION  (D)  OF
 SECTION  ELEVEN HUNDRED THIRTY-THREE OF THIS CHAPTER SHALL NOT BE GUILTY
 OF A MISDEMEANOR FOR FAILURE TO SEPARATELY CHARGE  THE  TAX  IMPOSED  BY
 SUCH ARTICLE TWENTY-EIGHT.
   § 4. This act shall take effect immediately.
 
                                 PART EEE
 
   Section  1.  Subdivisions  3 and 5 of section 171-v of the tax law, as
 added by section 1 of part P of chapter 59 of  the  laws  of  2013,  are
 amended to read as follows:
   (3)  The department shall provide notice to the taxpayer of his or her
 inclusion in the license suspension program no  later  than  sixty  days
 prior  to  the date the department intends to inform the commissioner of
 motor vehicles of the taxpayer's  inclusion.  However,  no  such  notice
 shall  be  issued  to  a taxpayer whose wages are being garnished by the
 department for the payment of past-due tax liabilities or past-due child
 support or combined child and spousal support arrears. Notice  shall  be
 provided  by  first  class  mail to the taxpayer's last known address as
 such address appears in the electronic systems or records of the depart-
 ment. Such notice shall include:
   (a) a clear statement of the past-due tax  liabilities  along  with  a
 statement  that  the department shall provide to the department of motor
 vehicles the taxpayer's name, social security number and any other iden-
 tifying information necessary for the purpose of suspending his  or  her
 driver's  license  pursuant  to  this  section and subdivision four-f of
 section five hundred ten of the vehicle and traffic law sixty days after
 the mailing or sending of such notice to the taxpayer;
   (b) a statement that the taxpayer may avoid suspension of his  or  her
 license by fully satisfying the past-due tax liabilities [or], by making
 payment  arrangements satisfactory to the commissioner, [and information
 as to how] OR BY DEMONSTRATING ANY OF  THE  GROUNDS  FOR  CHALLENGE  SET
 FORTH IN SUBDIVISION FIVE OF THIS SECTION.  SUCH STATEMENT SHALL INCLUDE
 INFORMATION  REGARDING  PROGRAMS  THROUGH WHICH the taxpayer can pay the
 past-due tax  liabilities  to  the  department,  enter  into  a  payment
 arrangement or request additional information;

 S. 1509--C                         95                         A. 2009--C

   (c)  a  statement  that  the taxpayer's right to protest the notice is
 limited to raising issues set forth in subdivision five of this section;
   (d) a statement that the suspension of the taxpayer's driver's license
 shall  continue until the past-due tax liabilities are fully paid or the
 taxpayer makes payment arrangements satisfactory  to  the  commissioner;
 and
   (e) any other information that the commissioner deems necessary.
   (5)  Notwithstanding any other provision of law, and except as specif-
 ically provided herein, the taxpayer shall have no right to  commence  a
 court  action  or  proceeding or to any other legal recourse against the
 department or the department of motor vehicles regarding a notice issued
 by the department pursuant to this  section  and  the  referral  by  the
 department  of any taxpayer with past-due tax liabilities to the depart-
 ment of motor vehicles pursuant to  this  section  for  the  purpose  of
 suspending  the  taxpayer's  driver's license. A taxpayer may only chal-
 lenge such suspension or referral on the grounds that (i) the individual
 to whom the notice was provided is not the taxpayer at issue;  (ii)  the
 past-due  tax liabilities were satisfied; (iii) the taxpayer's wages are
 being garnished by the department for the payment of  the  past-due  tax
 liabilities at issue or for past-due child support or combined child and
 spousal  support  arrears; (iv) the taxpayer's wages are being garnished
 for the payment of past-due child support or combined child and  spousal
 support  arrears  pursuant  to  an  income  execution issued pursuant to
 section five thousand two hundred forty-one of the  civil  practice  law
 and  rules; (v) the taxpayer's driver's license is a commercial driver's
 license as defined in section five hundred  one-a  of  the  vehicle  and
 traffic law; [or] (vi) the department incorrectly found that the taxpay-
 er  has  failed  to  comply with the terms of a payment arrangement made
 with the commissioner more than once within a twelve  month  period  for
 the  purposes  of  subdivision three of this section; (VII) THE TAXPAYER
 RECEIVES PUBLIC ASSISTANCE OR SUPPLEMENTAL SECURITY  INCOME;  OR  (VIII)
 THE  TAXPAYER  DEMONSTRATES  THAT  SUSPENSION OF THE TAXPAYER'S DRIVER'S
 LICENSE WILL CAUSE THE TAXPAYER UNDUE ECONOMIC HARDSHIP.
   However, nothing in this subdivision is intended to limit  a  taxpayer
 from  seeking  relief  PURSUANT  TO  AN  OFFER IN COMPROMISE PURSUANT TO
 SUBDIVISION FIFTEENTH OF SECTION ONE HUNDRED SEVENTY-ONE OF THIS ARTICLE
 OR from joint and several liability  pursuant  to  section  six  hundred
 fifty-four  of  this  chapter,  to the extent that he or she is eligible
 pursuant to [that subdivision] SUCH  SECTION,  or  establishing  to  the
 department  that  the  enforcement of the underlying tax liabilities has
 been stayed by the filing of a petition pursuant to the Bankruptcy  Code
 of 1978 (Title Eleven of the United States Code).
   §  2.  The  commissioner  of  taxation  and  finance is authorized and
 directed to promulgate any rules and regulations necessary to  implement
 the  provisions  of  this  act  in accordance with the provisions of the
 state administrative procedure act.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.
 
                                 PART FFF

   Section  1. Paragraph 44 of subdivision (a) of section 1115 of the tax
 law, as added by section 1 of part WW of chapter 59 of the laws of 2017,
 is amended to read as follows:
   (44) monuments as that term is defined in [subdivision] PARAGRAPH  (f)
 of  section  fifteen  hundred two of the not-for-profit corporation law,

 S. 1509--C                         96                         A. 2009--C
 
 AND TANGIBLE PERSONAL PROPERTY THAT WILL  BECOME  A  PHYSICAL  COMPONENT
 PART OF SUCH MONUMENTS.
   §  2.  This  act  shall take effect on June 1, 2019 and shall apply to
 sales made on and after such date.
 
                                 PART GGG
 
   Section 1. Section 1 of subpart K of part II of a chapter of the  laws
 of 2019 amending the public officers law relating to prohibiting disclo-
 sure of law enforcement booking information and photographs, as proposed
 in legislative bill numbers S.1505-C and A.2005-C, is amended to read as
 follows:
   Section  1.  Legislative  findings.  The  legislature  finds  that law
 enforcement [booking information and] photographs,  otherwise  known  as
 "mugshots,"  are  published  on  the internet and other public platforms
 with impunity. An individual's mugshot is displayed publicly even if the
 arrest does not lead  to  a  conviction,  or  the  conviction  is  later
 expunged,  sealed,  or pardoned.  This practice presents an unacceptable
 invasion of the individual's personal privacy. While there is a well-es-
 tablished Constitutional right for the press and the public  to  publish
 government  records  which  are  in  the public domain or that have been
 lawfully accessed, arrest and booking information have not been found by
 courts to have the  same  public  right  of  access  as  criminal  court
 proceedings  or  court  filings. Therefore, each state can set access to
 this information through its Freedom of Information  laws.  The  federal
 government  has  already  limited  access to booking photographs through
 privacy formulations in its Freedom of Information Act, and the legisla-
 ture hereby declares that New York will follow  the  same  principle  to
 protect  its residents from this unwarranted invasion of personal priva-
 cy, absent a specific law enforcement purpose, such as disclosure  of  a
 photograph  to  alert  victims  or witnesses to come forward to aid in a
 criminal investigation.
   § 2. Paragraph (b) of subdivision 2 of section 89 of the public  offi-
 cers  law,  as amended by section 2 of subpart K of part II of a chapter
 of the laws of 2019 amending the public officers law relating to prohib-
 iting disclosure of law enforcement booking information and photographs,
 as proposed in  legislative  bill  numbers  S.1505-C  and  A.2005-C,  is
 amended to read as follows:
   (b)  An  unwarranted  invasion of personal privacy includes, but shall
 not be limited to:
   i. disclosure of employment, medical or credit histories  or  personal
 references of applicants for employment;
   ii. disclosure of items involving the medical or personal records of a
 client or patient in a medical facility;
   iii.  sale  or  release  of lists of names and addresses if such lists
 would be used for solicitation or fund-raising purposes;
   iv. disclosure of information of a  personal  nature  when  disclosure
 would  result  in economic or personal hardship to the subject party and
 such information is not relevant to the work of the agency requesting or
 maintaining it;
   v. disclosure of information of a personal nature reported  in  confi-
 dence to an agency and not relevant to the ordinary work of such agency;
   vi.  information  of a personal nature contained in a workers' compen-
 sation record, except as provided by section one hundred  ten-a  of  the
 workers' compensation law;

 S. 1509--C                         97                         A. 2009--C
 
   vii.  disclosure  of electronic contact information, such as an e-mail
 address or a social network username, that has  been  collected  from  a
 taxpayer under section one hundred four of the real property tax law; or
   viii.  disclosure  of  law  enforcement  [booking information about an
 individual, including] ARREST OR booking photographs OF  AN  INDIVIDUAL,
 unless  public  release  of  such [information] PHOTOGRAPHS will serve a
 specific law enforcement purpose and disclosure is not precluded by  any
 state or federal laws.
   §  3.  This  act  shall  take  effect on the same date and in the same
 manner as subpart K of part II of a chapter of the laws of 2019 amending
 the public officers  law  relating  to  prohibiting  disclosure  of  law
 enforcement booking information and photographs, as proposed in legisla-
 tive bill numbers S.1505-C and A.2005-C, takes effect.
 
                                 PART HHH
 
   Section  1.  Section  1  of  part  TT of a chapter of the laws of 2019
 relating to the closure  of  correctional  facilities,  as  proposed  in
 legislative  bill  numbers  S.1505-C and A.2005-C, is amended to read as
 follows:
   Section 1. Notwithstanding the provisions of sections 79-a and 79-b of
 the correction law, the governor is authorized  to  close  [two]  UP  TO
 THREE  correctional  facilities  of  the  department  of corrections and
 community supervision, in state fiscal year 2019-2020, as he  determines
 to  be  necessary  for the cost-effective and efficient operation of the
 correctional system, provided that the governor  provides  at  least  90
 days notice prior to any such closures to the temporary president of the
 senate and the speaker of the assembly.
   §  2.  This  act  shall  take  effect on the same date and in the same
 manner as part TT of a chapter of the  laws  of  2019  relating  to  the
 closure  of  correctional  facilities,  as  proposed in legislative bill
 numbers S.1505-C and A.2005-C, takes effect provided, however, that  the
 amendments  to  section 1 of part TT of such chapter made by section one
 of this act shall not affect the repeal of such  section  and  shall  be
 deemed repealed therewith.
 
                                 PART III
 
   Section  1.  Subparagraph  (iii)  of  paragraph  c of subdivision 2 of
 section 140 of the transportation law, as added by chapter  173  of  the
 laws  of  1990,  item (b) as amended by chapter 604 of the laws of 2000,
 the second undesignated paragraph of item (b) as amended by chapter  260
 of  the  laws  of 2001, and such paragraph as relettered by section 6 of
 part G of chapter 58 of the laws of 2012, is amended to read as follows:
   (iii) (a) Except as provided in subparagraph (iv) of  this  paragraph,
 any  person, corporation, company, association, joint stock association,
 partnership, person or any officer or agent  thereof,  found  guilty  of
 violating  any  of the department's safety rules or regulations shall be
 subject to a fine of not less than [one] TWO hundred fifty  dollars  nor
 more than [five hundred] ONE THOUSAND dollars for the first offense, and
 upon  being  found  guilty  of  a second or subsequent offense committed
 within eighteen months by a fine of not less  than  [five  hundred]  ONE
 THOUSAND  dollars nor more than one thousand FIVE HUNDRED dollars, or by
 imprisonment for not more than thirty days or  by  both  such  fine  and
 imprisonment.

 S. 1509--C                         98                         A. 2009--C
 
   (b) Any person, corporation, company, association, joint stock associ-
 ation, partnership, person or any officer or agent thereof, found guilty
 of violating any of the department's safety rules or regulations involv-
 ing  an out-of-service defect relating to brake systems, steering compo-
 nents  and/or  coupling  devices  shall be subject to a fine of not less
 than [three hundred fifty] FIVE HUNDRED dollars nor more than one  thou-
 sand  TWO  HUNDRED  FIFTY  dollars for the first offense, and upon being
 found guilty of a second or subsequent offense committed within eighteen
 months by a fine of not less than one thousand TWO HUNDRED FIFTY dollars
 nor more than [two] THREE thousand [five hundred] dollars, or by  impri-
 sonment  for not more than sixty days or by both such fine and imprison-
 ment; provided, however, that if any such person, corporation,  company,
 association, joint stock association, partnership, person or any officer
 or  agent  thereof  is  operating  a farm vehicle registered pursuant to
 subdivision thirteen of section four hundred  one  of  the  vehicle  and
 traffic  law  in conformance with the terms of such registration, and if
 the violation as set forth in the summons is corrected  not  later  than
 one-half  hour  after  sunset  on  the third full business day after the
 issuance of the summons and proof of such correction  as  set  forth  in
 item  (b)  of  subparagraph  (iv)  of this paragraph is submitted to the
 court, the penalty for a first violation involving brake  systems  shall
 be  a  fine  of [one] TWO hundred fifty dollars, the penalty for a first
 violation involving steering components and/or coupling devices shall be
 a fine of [one]  TWO  hundred  dollars  and  the  penalty  for  a  first
 violation  involving  any other out-of-service defect shall be a fine of
 ONE HUNDRED fifty dollars. A motor vehicle shall be deemed to be out-of-
 service only until such time as the applicable out-of-service defect  is
 repaired or adjusted.
   Any  person,  corporation,  company,  association, joint stock associ-
 ation, partnership, person or any officer or agent thereof, found guilty
 of violating any of the department's safety rules or regulations involv-
 ing an out-of-service defect  relating  to  load  securement,  shall  be
 subject  to  a fine of not less than [five hundred] ONE THOUSAND dollars
 nor more than one thousand [two] FIVE  hundred  dollars  for  the  first
 offense,  and  upon being found guilty of a second or subsequent offense
 committed within eighteen months by a fine of not less than one thousand
 FIVE HUNDRED dollars nor more than [two] THREE thousand  [five  hundred]
 dollars, or by imprisonment for not more than sixty days or by both such
 fine  and  imprisonment;  provided,  however,  that  if any such person,
 corporation, company, association, joint stock association, partnership,
 person or any officer or agent  thereof  is  operating  a  farm  vehicle
 registered  pursuant to subdivision thirteen of section four hundred one
 of the vehicle and traffic law in conformance with  the  terms  of  such
 registration,  the  penalty  for such violation shall be a fine of [two]
 FIVE hundred [fifty] dollars. A motor vehicle  shall  be  deemed  to  be
 out-of-service  only  until  such  time as the applicable out-of-service
 defect is repaired or adjusted.
   § 2. Subparagraphs (v) and (vii) of paragraph c of  subdivision  2  of
 section  140  of  the transportation law, subparagraph (v) as amended by
 section 10 of part K of chapter 59 of the laws of 2009  and  such  para-
 graph  as relettered by section 6 of part G of chapter 58 of the laws of
 2012, subparagraph (vii) as added by section 10 of part I of chapter  58
 of the laws of 2015, are amended to read as follows:
   (v) (a) A driver who is convicted of violating an out-of-service order
 as  provided  for in the department's safety rules and regulations shall
 be guilty of a traffic infraction which shall be punishable by a fine of

 S. 1509--C                         99                         A. 2009--C
 
 not less than [two] THREE thousand [five hundred] dollars nor more  than
 [four]  FIVE  thousand  dollars  upon  the first offense, and upon being
 found guilty of a second or subsequent offense within eighteen months by
 a  fine of not less than [five] SIX thousand dollars nor more than [six]
 SEVEN thousand dollars.
   (b) No person, corporation,  limited  liability  company  or  business
 entity,  joint  stock  association, partnership, or any officer or agent
 thereof, shall knowingly allow, require, permit or authorize any  person
 to operate a commercial motor vehicle as defined by section five hundred
 one-a  of  the  vehicle  and traffic law during any period in which such
 person, such commercial motor vehicle, or such motor  carrier  operation
 has been placed out of service as provided for in the department's safe-
 ty rules and regulations and shall be subject to a fine of not less than
 [two]  THREE  thousand  seven  hundred  fifty  dollars and not more than
 [twenty-five] THIRTY thousand dollars for any violation thereof.
   (c) No person, corporation,  limited  liability  company  or  business
 entity,  joint  stock  association, partnership, or any officer or agent
 thereof, shall knowingly allow, require, permit or authorize any  person
 to operate a commercial motor vehicle as defined in section five hundred
 one-a  of  the  vehicle  and  traffic law in violation of section eleven
 hundred seventy-one or eleven hundred seventy-six  of  the  vehicle  and
 traffic  law and, upon conviction thereof, shall be subject to a fine of
 not more than [ten] TWELVE thousand dollars for any violation thereof.
   (vii) No person, corporation, limited liability  company  or  business
 entity,  joint  stock  association, partnership, or any officer or agent
 thereof, shall knowingly allow, require, permit or authorize any  person
 to  operate  a  commercial  motor  vehicle,  as  defined in section five
 hundred one-a of the vehicle and traffic law, during any period in which
 the operator:
   (a) does not have a valid commercial learner's  permit  or  commercial
 driver's license; or
   (b) does not have a commercial learner's permit or commercial driver's
 license with the proper class or endorsements; or
   (c)  violates  any restriction on such operator's commercial learner's
 permit or commercial driver's license; or
   (d) has a commercial learner's permit or commercial  driver's  license
 that  is  suspended,  revoked  or  cancelled,  or such operator has been
 otherwise disqualified by the commissioner of motor vehicles; or
   (e) has more than one commercial learner's permit or commercial  driv-
 er's license.
   A  violation of this subparagraph shall be punishable by a fine of not
 less than two hundred FIFTY dollars  nor  more  than  one  thousand  TWO
 HUNDRED FIFTY dollars.
   §  3.  Subdivision  9  of  section  140  of the transportation law, as
 amended by chapter 349 of the laws  of  1993,  is  amended  to  read  as
 follows:
   9.  A.  If, after notice and opportunity to be heard, the commissioner
 shall find that any person is operating in violation of  the  provisions
 of  this  section, the commissioner may penalize such person pursuant to
 subdivision three of section one hundred forty-five of this article. The
 commissioner may also notify the commissioner  of  motor  vehicles  that
 such  person  is  operating in violation of this section and the commis-
 sioner of motor vehicles shall thereupon suspend the registration of all
 motor vehicles owned or operated by such person, with the  exception  of
 private  passenger  automobiles, until such time as the commissioner may
 give notice that the violation has been satisfactorily adjusted, AND THE

 S. 1509--C                         100                        A. 2009--C
 
 COMMISSIONER OF MOTOR VEHICLES MAY DIRECT ANY POLICE OFFICER  TO  SECURE
 POSSESSION OF THE NUMBER PLATES OF SUCH MOTOR VEHICLES AND TO RETURN THE
 SAME  TO THE COMMISSIONER OF MOTOR VEHICLES. FAILURE OF THE HOLDER OR OF
 ANY  PERSON  POSSESSING SUCH NUMBER PLATES TO DELIVER SUCH NUMBER PLATES
 TO ANY POLICE OFFICER WHO REQUESTS THE SAME PURSUANT TO THIS SUBDIVISION
 SHALL CONSTITUTE A MISDEMEANOR. The commissioner of motor vehicles shall
 have the authority to deny a registration or renewal application to  any
 other person for the same vehicle and may deny a registration or renewal
 application  for  any  other motor vehicle registered in the name of the
 applicant where it has been determined that such registrant's intent has
 been to evade the purposes of this subdivision and where the commission-
 er of motor vehicles has reasonable grounds to believe that such  regis-
 tration  or  renewal  will  have the effect of defeating the purposes of
 this subdivision. The procedure on any such suspension shall be the same
 as in the case of a suspension under the vehicle and traffic law. Opera-
 tion of any motor vehicle while  under  suspension  as  herein  provided
 shall  constitute  a class A misdemeanor.  A PERSON WHO OPERATES A MOTOR
 VEHICLE WHILE SUCH VEHICLE IS  UNDER  SUSPENSION  AS  PROVIDED  IN  THIS
 SUBDIVISION IN A MANNER THAT CAUSES THE DEATH OF ANOTHER PERSON, KNOWING
 THAT  THE OPERATION OF SUCH VEHICLE IS IN VIOLATION OF THIS SUBDIVISION,
 SHALL BE GUILTY OF A CLASS E FELONY.
   B. WHENEVER AN  ALTERED  MOTOR  VEHICLE  COMMONLY  REFERRED  TO  AS  A
 "STRETCH LIMOUSINE" HAS FAILED AN INSPECTION AND BEEN PLACED OUT-OF-SER-
 VICE,  THE  COMMISSIONER MAY DIRECT A POLICE OFFICER OR HIS OR HER AGENT
 TO IMMEDIATELY SECURE POSSESSION OF THE NUMBER PLATES  OF  SUCH  VEHICLE
 AND  RETURN THE SAME TO THE COMMISSIONER OF MOTOR VEHICLES.  THE COMMIS-
 SIONER SHALL NOTIFY THE COMMISSIONER OF MOTOR VEHICLES TO  THAT  EFFECT,
 AND  THE  COMMISSIONER  OF  MOTOR  VEHICLES  SHALL THEREUPON SUSPEND THE
 REGISTRATION OF SUCH VEHICLE UNTIL SUCH TIME AS THE  COMMISSIONER  GIVES
 NOTICE  THAT THE OUT-OF-SERVICE DEFECT HAS BEEN SATISFACTORILY ADJUSTED.
 PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL GIVE NOTICE AND AN OPPOR-
 TUNITY TO BE HEARD WITHIN NOT MORE THAN THIRTY DAYS OF  THE  SUSPENSION.
 FAILURE OF THE HOLDER OR OF ANY PERSON POSSESSING SUCH PLATES TO DELIVER
 TO  THE  COMMISSIONER OR HIS OR HER AGENT WHO REQUESTS THE SAME PURSUANT
 TO THIS PARAGRAPH SHALL BE A  MISDEMEANOR.  THE  COMMISSIONER  OF  MOTOR
 VEHICLES  SHALL  HAVE  THE  AUTHORITY  TO DENY A REGISTRATION OR RENEWAL
 APPLICATION TO ANY OTHER PERSON FOR THE SAME VEHICLE WHERE IT  HAS  BEEN
 DETERMINED  THAT SUCH REGISTRANT'S INTENT HAS BEEN TO EVADE THE PURPOSES
 OF THIS PARAGRAPH AND WHERE  THE  COMMISSIONER  OF  MOTOR  VEHICLES  HAS
 REASONABLE  GROUNDS  TO  BELIEVE  THAT SUCH REGISTRATION OR RENEWAL WILL
 HAVE THE EFFECT OF DEFEATING THE PURPOSES OF THIS PARAGRAPH. THE  PROCE-
 DURE  ON  ANY  SUCH  SUSPENSION  SHALL  BE  THE SAME AS IN THE CASE OF A
 SUSPENSION UNDER THE VEHICLE AND TRAFFIC LAW. OPERATION  OF  SUCH  MOTOR
 VEHICLE  WHILE  UNDER  SUSPENSION  AS PROVIDED IN THIS SUBDIVISION SHALL
 CONSTITUTE A CLASS A MISDEMEANOR.
   § 4. Subdivision 3 of section 145 of the transportation law, as  added
 by chapter 635 of the laws of 1983, is amended to read as follows:
   3.  In  addition  to,  or  in lieu of, any sanctions set forth in this
 section, the commissioner may, after a hearing, impose a penalty not  to
 exceed  a  maximum  of [five] TEN thousand dollars in any one proceeding
 upon any person if the commissioner finds that such person  or  officer,
 agent  or employee thereof has failed to comply with the requirements of
 this chapter or any  rule,  regulation  or  order  of  the  commissioner
 promulgated  thereunder. If such penalty is not paid within four months,
 the amount thereof may be entered as a judgment in  the  office  of  the
 clerk  of  the  county  of  Albany  and in any other county in which the

 S. 1509--C                         101                        A. 2009--C
 
 person resides, has a place of business or through  which  it  operates.
 Thereafter,  if said judgment has not been satisfied within ninety days,
 any certificate or permit held by any such person may  be  revoked  upon
 notice  but  without  a  further  hearing.  Provided, however, that if a
 person shall apply for a rehearing of the determination of  the  penalty
 pursuant to the provisions of section eighty-nine of this chapter, judg-
 ment  shall  not  be  entered until a determination has been made on the
 application for a rehearing.  Further provided however, that if after  a
 rehearing  a penalty is imposed and such penalty is not paid within four
 months of the date of service of the rehearing decision, the  amount  of
 such  penalty may be entered as a judgment in the office of the clerk of
 the county of Albany and  in  any  other  county  in  which  the  person
 resides, has a place of business or through which it operates. Thereaft-
 er,  if  said  judgment  has  not been satisfied within ninety days, any
 certificate or permit held by any such person may be revoked upon notice
 but without a further hearing.
   § 5. Subdivision 4 of  section  145  of  the  transportation  law,  as
 amended  by  chapter  349  of  the  laws  of 1993, is amended to read as
 follows:
   4. If after notice and opportunity to be heard, the commissioner shall
 find that any person or  persons  is  or  are  providing  transportation
 subject  to regulation under this chapter without having any certificate
 or permit, or is or are holding themselves out to the public  by  adver-
 tising  or any other means to provide such transportation without having
 any certificate or permit or approval from a  city  having  jurisdiction
 pursuant  to section eighty of this chapter, the commissioner may notify
 the commissioner of motor vehicles to that effect and  the  commissioner
 of  motor vehicles shall thereupon suspend the registration or registra-
 tions of all motor vehicles owned or operated by such person or  persons
 except private passenger automobiles until such time as the commissioner
 of  transportation may give notice that the violation has been satisfac-
 torily adjusted, AND THE COMMISSIONER OF MOTOR VEHICLES MAY  DIRECT  ANY
 POLICE  OFFICER  TO SECURE POSSESSION OF THE NUMBER PLATES OF SUCH MOTOR
 VEHICLES AND TO RETURN THE SAME TO THE COMMISSIONER OF  MOTOR  VEHICLES.
 FAILURE  OF THE HOLDER OR OF ANY PERSON POSSESSING SUCH NUMBER PLATES TO
 DELIVER SUCH NUMBER PLATES TO ANY POLICE OFFICER WHO REQUESTS  THE  SAME
 PURSUANT TO THIS SUBDIVISION SHALL CONSTITUTE A MISDEMEANOR. The commis-
 sioner of motor vehicles shall have the authority to deny a registration
 or  renewal application to any other person for the same vehicle and may
 deny a registration or renewal application for any other  motor  vehicle
 registered  in  the  name  of the applicant where it has been determined
 that such registrant's intent has been to evade  the  purposes  of  this
 subdivision  and where the commissioner of motor vehicles has reasonable
 grounds to believe that such  registration  or  renewal  will  have  the
 effect  of  defeating the purposes of this subdivision. The procedure on
 any such suspension shall be the same as in the  case  of  a  suspension
 under  the vehicle and traffic law. Operation of any motor vehicle while
 under suspension as herein provided shall constitute a class A misdemea-
 nor.  A PERSON WHO OPERATES A MOTOR VEHICLE WHILE SUCH VEHICLE IS  UNDER
 SUSPENSION  AS  PROVIDED IN THIS SUBDIVISION IN A MANNER THAT CAUSES THE
 DEATH OF ANOTHER PERSON, KNOWING THAT THE OPERATION OF SUCH  VEHICLE  IS
 IN VIOLATION OF THIS SUBDIVISION, SHALL BE GUILTY OF A CLASS E FELONY.
   §  6. Subdivision 5 of section 145 of the transportation law, as added
 by chapter 635 of the laws of 1983, is amended to read as follows:
   5. Any person, whether  carrier,  passenger,  shipper,  consignee,  or
 broker,  or  any officer, employee, agent or representative thereof, who

 S. 1509--C                         102                        A. 2009--C
 
 shall knowingly offer, grant or give or solicit, accept, or receive  any
 rebate,  concession  or  discrimination in violation of this chapter, or
 who by means of any false statement or representation, or by the use  of
 any  false  or  fictitious bill, bill of lading, receipt, voucher, roll,
 account, claim, certificate, affidavit, deposition,  lease  or  bill  of
 sale,  or  by  any  other means or device, shall knowingly and willfully
 assist, suffer or permit any person or persons to obtain  transportation
 of  property  or  passengers  subject  to this chapter for less than the
 applicable rate, toll or charge, or who, with respect to the transporta-
 tion of household goods, shall knowingly or willfully  misrepresent  the
 applicable  rate  for  transportation or the weight of a shipment or the
 cost of transportation to the shipper, or who shall knowingly and  will-
 fully  by  any  such  means  or  otherwise fraudulently seek to evade or
 defeat regulation as provided for in this chapter, shall be guilty of  a
 misdemeanor  and  upon  conviction  thereof be fined not more than [five
 hundred] ONE THOUSAND dollars for the first offense and  not  more  than
 two thousand FIVE HUNDRED dollars for any subsequent offense.
   §  7.  Subdivision  6  of  section  145  of the transportation law, as
 amended by chapter 444 of the laws  of  1992,  is  amended  to  read  as
 follows:
   6. Any person who shall provide transportation for compensation within
 the  state,  or hold himself or herself out to the public by advertising
 or any other means to provide such transportation, when such transporta-
 tion requires either the permission or approval of the commissioner,  or
 the  permission,  approval  or  franchise  of any city having regulatory
 jurisdiction over such transportation and who does not possess  a  valid
 permit,  certificate  or  approval  for  such  transportation,  from the
 commissioner or from such city, shall be guilty of a traffic  infraction
 punishable  by  a  fine  of  not  less  than [five hundred] ONE THOUSAND
 DOLLARS and not more than one thousand  FIVE  HUNDRED  dollars  for  the
 first  offense.  A  violation  of  this  subdivision by a person who has
 previously been convicted of such  offense  within  five  years  of  the
 violation  shall  be  a misdemeanor and shall be punishable by a fine of
 not less than [one] TWO thousand DOLLARS and not more than  [twenty-five
 hundred]  FIVE  THOUSAND  dollars,  or by imprisonment for not more than
 sixty days, or by both such fine and imprisonment.  Upon conviction as a
 second or subsequent offender as described herein the  court  may  order
 forfeiture  of any right, title or interest held by the defendant in any
 motor vehicle used in the commission of such  offense  pursuant  to  the
 provisions  of  subdivision seven of this section. In addition to, or in
 lieu of, any sanction set forth in this  subdivision,  the  commissioner
 may,  after  a  hearing,  impose  a  penalty equal to the gain or profit
 derived from transportation services  conducted  in  violation  of  this
 subdivision. Any person holding regulatory authority or a franchise from
 either  the commissioner or any city having regulatory jurisdiction over
 such transportation, or  any  public  transportation  authority  created
 pursuant to title nine, eleven, eleven-A, eleven-B, eleven-C or eleven-D
 of  article  five  of the public authorities law, who is being adversely
 affected by a person providing transportation without having the  neces-
 sary regulatory authority or franchise from the commissioner or any such
 city,  may  bring  suit  in  his, her or its own behalf to restrain such
 person and recover damages resulting from the actions of such person.
   § 8. Section 375 of the vehicle and traffic law is amended by adding a
 new subdivision 53 to read as follows:
   53. FEDERAL MOTOR VEHICLE  SAFETY  STANDARD  CERTIFICATION  LABEL.  NO
 PERSON SHALL, WITH INTENT TO DEFRAUD, KNOWINGLY REMOVE, DEFACE, DESTROY,

 S. 1509--C                         103                        A. 2009--C
 
 COVER,  ALTER,  OR  OTHERWISE CHANGE THE FORM OR APPEARANCE OF A FEDERAL
 MOTOR VEHICLE SAFETY STANDARD CERTIFICATION LABEL, ISSUED IN  ACCORDANCE
 WITH SECTION 30115 OF TITLE 49 OF THE UNITED STATES CODE AND PART 567 OF
 TITLE  49  OF THE CODE OF FEDERAL REGULATIONS, ON AN ALTERED MOTOR VEHI-
 CLE. NO PERSON SHALL, WITH INTENT TO DEFRAUD, AFFIX TO AN ALTERED  MOTOR
 VEHICLE  A  FEDERAL  MOTOR  VEHICLE  SAFETY STANDARD CERTIFICATION LABEL
 EXCEPT IN ACCORDANCE WITH SECTION 30115 OF TITLE 49 OF THE UNITED STATES
 CODE AND PART 567 OF TITLE 49 OF THE  CODE  OF  FEDERAL  REGULATIONS.  A
 VIOLATION OF THIS SUBDIVISION SHALL BE PUNISHABLE AS A MISDEMEANOR.
   §  9.  Section 401 of the vehicle and traffic law is amended by adding
 two new subdivisions 22 and 23 to read as follows:
   22. THE COMMISSIONER SHALL NOT REGISTER ANY ALTERED MOTOR VEHICLE THAT
 FAILS TO COMPLY, AS DEMONSTRATED TO THE SATISFACTION OF THE  COMMISSION-
 ER, WITH THE CERTIFICATION REQUIREMENTS ESTABLISHED BY PART 567 OF TITLE
 49 OF THE CODE OF FEDERAL REGULATIONS FOR ALTERED VEHICLES.
   23.  THE  COMMISSIONER  SHALL  REVOKE  THE REGISTRATION OF ANY ALTERED
 MOTOR VEHICLE WHICH FAILS TO COMPLY WITH THE CERTIFICATION  REQUIREMENTS
 OF  PART  567  OF TITLE 49 OF THE CODE OF FEDERAL REGULATIONS, AS DETER-
 MINED BY THE COMMISSIONER, AND REFUND TO OR CREDIT THE  ACCOUNT  OF  ANY
 PERSON WHO PAID A REGISTRATION FEE FOR AN ALTERED MOTOR VEHICLE, THE PRO
 RATA UNUSED PORTION OF SUCH REGISTRATION FEE.
   §  10.  Subdivision (e) of section 303 of the vehicle and traffic law,
 as amended by chapter 605 of the laws of 1989, the opening paragraph  as
 amended  by  chapter  608  of  the  laws  of 1993, is amended to read as
 follows:
   (e) 1. A license to  operate  an  official  inspection  station  or  a
 certificate  to  inspect vehicles may be suspended or revoked or renewal
 thereof may be refused by the commissioner or any person duly  deputized
 for one or more of the following causes:
   [1.]  (I)  Failure  to  conduct  inspections  in  conformance with the
 provisions of this article and the  rules  and  regulations  promulgated
 thereunder or improper issuance of certificates of inspections.
   [2.]  (II)  Conviction  of  a crime involving fraud, theft, perjury or
 bribery or other cause which would permit disqualification from  receiv-
 ing  a  license  or  a certificate to inspect vehicles upon the original
 application.
   [3.] (III) Fraud, deceit or misrepresentation in securing the  license
 or  a  certificate  to inspect vehicles or in the conduct of licensed or
 certified activity.
   [4.] (IV) Excessive charges for conducting inspections and for  making
 adjustments, corrections or repairs required by such inspections.
   [5.]  (V)  Violation  of  any provision of this article or any rule or
 regulation promulgated thereunder.
   2. PROVIDED, HOWEVER A  LICENSE  TO  OPERATE  AN  OFFICIAL  INSPECTION
 STATION  OR  A  CERTIFICATE  TO  INSPECT  VEHICLES SHALL BE SUSPENDED OR
 REVOKED OR RENEWAL THEREOF SHALL BE REFUSED BY THE COMMISSIONER  OR  ANY
 PERSON  DULY  DEPUTIZED,  UPON A THIRD OR SUBSEQUENT VIOLATION COMMITTED
 WITHIN A PERIOD OF EIGHTEEN MONTHS OF ANY  RULE  OR  REGULATION  OF  THE
 COMMISSIONER  REQUIRING  AN  INSPECTION  STATION TO REFUSE TO PERFORM AN
 INSPECTION AS SET FORTH IN PARAGRAPH TWO OF SUBDIVISION (F)  OF  SECTION
 79.20  OF TITLE FIFTEEN OF THE CODES, RULES AND REGULATIONS OF THE STATE
 OF NEW YORK. IF THE COMMISSIONER OR ANY  PERSON  DULY  DEPUTIZED  ORDERS
 PENALTIES  TO  BE PAID PURSUANT TO SUBDIVISION (H) OF THIS SECTION, SUCH
 PENALTIES SHALL BE IN ADDITION TO, BUT NOT IN  LIEU  OF,  A  SUSPENSION,
 REVOCATION, OR RENEWAL THEREOF IMPOSED PURSUANT TO THIS PARAGRAPH.

 S. 1509--C                         104                        A. 2009--C
 
   §  11.  Subdivision (h) of section 303 of the vehicle and traffic law,
 as amended by section 1 of part OO of chapter 59 of the laws of 2009, is
 amended to read as follows:
   (h)  The commissioner, or any person duly deputized, in addition to or
 in lieu of revoking or suspending  a  license  to  operate  an  official
 inspection  station  or  a certificate to inspect vehicles, may by order
 require the licensee or certified inspector to pay to the people of this
 state a penalty for a first violation a sum not exceeding [seven hundred
 and fifty] ONE THOUSAND dollars for each violation found  to  have  been
 committed;  and  for a second or subsequent violation not arising out of
 the same incident both of which were committed within a period of thirty
 months, a sum of not more than one thousand  FIVE  HUNDRED  dollars  for
 each  violation  found  to  have  been committed; provided, however, the
 penalty for each and any violation of SUBPARAGRAPH  (III)  OF  paragraph
 [three]  ONE  of  subdivision  (e)  of  this  section found to have been
 committed shall be no less than [three hundred and fifty]  FIVE  HUNDRED
 dollars and no more than one thousand FIVE HUNDRED dollars, AND PROVIDED
 FURTHER, HOWEVER, THE PENALTY FOR A VIOLATION FOUND TO HAVE BEEN COMMIT-
 TED  OF  ANY  RULE  OR  REGULATION  OF  THE  COMMISSIONER  REQUIRING  AN
 INSPECTION STATION TO REFUSE TO PERFORM AN INSPECTION AS  SET  FORTH  IN
 PARAGRAPH  TWO  OF  SUBDIVISION (F) OF SECTION 79.20 OF TITLE FIFTEEN OF
 THE CODES, RULES AND REGULATIONS OF THE STATE OF NEW  YORK  SHALL  BE  A
 FINE  OF NOT LESS THAN TWO HUNDRED FIFTY DOLLARS NOR MORE THAN ONE THOU-
 SAND DOLLARS FOR A FIRST VIOLATION, AND A FINE OF  NOT  LESS  THAN  FIVE
 HUNDRED  DOLLARS  NOR  MORE THAN ONE THOUSAND FIVE HUNDRED DOLLARS FOR A
 SECOND OR SUBSEQUENT SUCH VIOLATION NOT ARISING OUT OF THE SAME INCIDENT
 BOTH OF WHICH WERE COMMITTED WITHIN A PERIOD  OF  EIGHTEEN  MONTHS,  and
 upon the failure of such licensee to pay such penalty within twenty days
 after  the  mailing of such order, postage prepaid, registered or certi-
 fied, and addressed to the last known place of business of such licensee
 or certified inspector, unless such order is stayed by a court of compe-
 tent jurisdiction or in accordance  with  the  provisions  of  [Article]
 ARTICLE three-A of this chapter, the commissioner may revoke the license
 of  such  licensee or the certificate of such certified inspector or may
 suspend the same for such period as may be determined.  Civil  penalties
 assessed  under  this  subdivision shall be paid to the commissioner for
 deposit into the state treasury,  and  unpaid  civil  penalties  may  be
 recovered  by  the  commissioner  in  a  civil action in the name of the
 commissioner. In addition, as an alternative to such  civil  action  and
 provided  that  no  proceeding for judicial review shall then be pending
 and the time for initiation of such proceeding shall have  expired,  the
 commissioner  may  file with the county clerk of the county in which the
 registrant is located or the certified inspector resides a  final  order
 of  the  commissioner containing the amount of the penalty assessed. The
 filing of such final order shall have the full force  and  effect  of  a
 judgment  duly  docketed in the office of such clerk and may be enforced
 in the same manner and with the same effect as that provided by  law  in
 respect  to executions issued against property upon judgments of a court
 of record.
   § 12. The vehicle and traffic law is amended by adding a  new  section
 308-a to read as follows:
   §  308-A.  MANDATORY  REPORTING. IF ANY MOTOR VEHICLE IS PRESENTED FOR
 INSPECTION AT A LICENSED OFFICIAL INSPECTION STATION, AND  SUCH  VEHICLE
 HAS  BEEN  ALTERED,  A VEHICLE COMMONLY REFERRED TO AS A "STRETCH LIMOU-
 SINE", SO AS TO  ADD  SEATING  CAPACITY  BEYOND  THAT  PROVIDED  BY  THE
 ORIGINAL  MANUFACTURER  BY  WAY OF AN EXTENDED CHASSIS, LENGTHENED WHEEL

 S. 1509--C                         105                        A. 2009--C
 
 BASE, OR AN ELONGATED SEATING AREA, AND IN THE CASE OF A TRUCK, HAS BEEN
 MODIFIED TO TRANSPORT  PASSENGERS,  SUCH  LICENSED  OFFICIAL  INSPECTION
 STATION  SHALL  REFUSE  INSPECTION  FOR SUCH VEHICLE AND PROMPTLY REPORT
 SUCH VEHICLE TO THE COMMISSIONER IN A FORM AND MANNER PRESCRIBED BY SUCH
 COMMISSIONER.  PROVIDED,  HOWEVER,  THAT  THE PROVISIONS OF THIS SECTION
 SHALL NOT APPLY TO ANY ALTERED MOTOR VEHICLE FOR WHICH THE DEPARTMENT OF
 TRANSPORTATION HAS ISSUED AN  EXEMPTION  LETTER  PURSUANT  TO  PARAGRAPH
 THREE  OF  SUBDIVISION  (F) OF PART 79.20 OF TITLE FIFTEEN OF THE CODES,
 RULES, AND REGULATIONS OF THE STATE OF NEW YORK AND THAT IS  IN  COMPLI-
 ANCE  WITH  PART  567  OF  TITLE FORTY-NINE OF THE CODE OF FEDERAL REGU-
 LATIONS.
   § 13. Paragraph (a) of subdivision 1 of section 370 of the vehicle and
 traffic law, as amended by chapter 305 of the laws of 1995,  is  amended
 to read as follows:
   (a)  For damages for and incident to death or injuries to persons: For
 each motorcycle and for each motor vehicle ENGAGED IN  THE  BUSINESS  OF
 CARRYING  OR TRANSPORTING PASSENGERS FOR HIRE, having a seating capacity
 of not more than seven passengers, a bond or  insurance  policy  with  a
 minimum  liability of twenty-five thousand dollars and a maximum liabil-
 ity of fifty thousand dollars for bodily injury, and a minimum liability
 of fifty thousand dollars and a maximum liability of one  hundred  thou-
 sand  dollars  for death; for each motor vehicle ENGAGED IN THE BUSINESS
 OF CARRYING OR TRANSPORTING PASSENGERS FOR HIRE, having a seating capac-
 ity of not less than eight [nor more than twelve] passengers, a bond  or
 insurance  policy  with  a  [minimum  liability  of twenty-five thousand
 dollars and a maximum liability of  eighty  thousand  dollars]  COMBINED
 SINGLE  LIMIT  OF AT LEAST ONE MILLION FIVE HUNDRED THOUSAND DOLLARS for
 bodily injury[,] and [a minimum liability of fifty thousand dollars  and
 a  maximum  liability of one hundred fifty thousand dollars for] death[;
 for each motor vehicle having a seating capacity of not less than  thir-
 teen  nor more than twenty passengers, a bond or insurance policy with a
 minimum liability of twenty-five thousand dollars and a maximum  liabil-
 ity of one hundred twenty thousand dollars for bodily injury and a mini-
 mum  liability  of fifty thousand dollars and a maximum liability of one
 hundred fifty thousand dollars for death; for each motor vehicle  having
 a  seating  capacity  of  not  less than twenty-one nor more than thirty
 passengers, a bond or insurance policy with a minimum liability of twen-
 ty-five thousand dollars and a maximum liability of  one  hundred  sixty
 thousand  dollars  for  bodily  injury  and a minimum liability of fifty
 thousand dollars and a maximum liability of two hundred thousand dollars
 for death; for each motor vehicle having a seating capacity of more than
 thirty passengers, a bond or insurance policy with a  minimum  liability
 of  twenty-five  thousand dollars and a maximum liability of two hundred
 thousand dollars for bodily injury and  a  minimum  liability  of  fifty
 thousand  dollars  and a maximum liability of two hundred fifty thousand
 dollars for death];
   § 14. Section 1161 of the vehicle and traffic law is amended by adding
 a new subdivision c to read as follows:
   C. NO ALTERED MOTOR VEHICLE COMMONLY REFERRED TO AS A "STRETCH  LIMOU-
 SINE"  HAVING A SEATING CAPACITY OF TEN OR MORE PASSENGERS INCLUDING THE
 DRIVER SHALL MAKE A U-TURN UPON ANY PUBLIC HIGHWAY OR PRIVATE ROAD  OPEN
 TO PUBLIC MOTOR VEHICLE TRAFFIC.
   §  15.  The vehicle and traffic law is amended by adding a new section
 509-z to read as follows:
   § 509-Z. MOTOR CARRIER INFORMATION. THE  COMMISSIONER  OF  TRANSPORTA-
 TION,  IN  CONSULTATION  WITH THE COMMISSIONER, SHALL ESTABLISH REQUIRE-

 S. 1509--C                         106                        A. 2009--C
 
 MENTS FOR ANY PERSON OR ENTITY  THAT  OWNS  AND  OPERATES  ONE  OR  MORE
 ALTERED  MOTOR  VEHICLES,  COMMONLY REFERRED TO AS "STRETCH LIMOUSINES",
 FOR PURPOSES OF ESTABLISHING  CONSPICUOUS  DISPLAY  OF  VALID  OPERATING
 AUTHORITY,   INSPECTION   INFORMATION,   AND  DRIVER  QUALIFICATIONS  AT
 LOCATIONS WHERE SUCH PERSONS OR  ENTITIES  PERFORM  CONTRACT  OR  COMMON
 CARRIER  SERVICES  WITH  ALTERED  MOTOR  VEHICLES AND WITHIN ANY ALTERED
 MOTOR VEHICLE USED TO PROVIDE SUCH SERVICES.
   § 16. Section 138 of the transportation law is amended by adding a new
 subdivision 9 to read as follows:
   9. TO MAINTAIN AND UPDATE ITS  WEBSITE  TO  PROVIDE  INFORMATION  WITH
 REGARD  TO  EACH BUS OPERATOR UNDER SUBPARAGRAPHS (II) AND (VI) OF PARA-
 GRAPH A OF SUBDIVISION TWO OF SECTION ONE HUNDRED FORTY OF THIS  CHAPTER
 REQUIRING  DEPARTMENT  OPERATING  AUTHORITY THAT INCLUDES THE BUS OPERA-
 TOR'S NAME, NUMBER OF INSPECTIONS, NUMBER  OF  OUT  OF  SERVICE  ORDERS,
 OPERATOR IDENTIFICATION NUMBER, LOCATION AND REGION OF OPERATION INCLUD-
 ING  PLACE  OF  ADDRESS,  PERCENTILE TO WHICH A MOTOR CARRIER FALLS WITH
 RESPECT TO OUT OF SERVICE DEFECTS, AND THE NUMBER  OF  SERIOUS  PHYSICAL
 INJURY OR FATAL CRASHES INVOLVING A FOR-HIRE VEHICLE REQUIRING OPERATING
 AUTHORITY PURSUANT TO THIS ARTICLE.
   §  17.  (1) The department of transportation, in consultation with the
 department of motor vehicles, the governor's traffic  safety  committee,
 the  division  of  state police and any other state agency, authority or
 political subdivision thereof deemed necessary by  the  commissioner  of
 transportation,  shall  conduct  a study to assess the current design of
 entrance and exit ramps and the appropriateness of existing  signage  on
 state  parkways  to  mitigate  U-turns and wrong-way entry by commercial
 vehicles and make recommendations to mitigate.  (2)  The  department  of
 motor  vehicles,  in consultation with the department of transportation,
 the governor's traffic safety committee and the division of state police
 and any other state agency, authority or political  subdivision  thereof
 deemed  necessary by the commissioner of transportation, shall conduct a
 study and provide recommendations to improve crash  reporting  and  data
 collection  pertaining  to  commercial  vehicles. (3) Such commissioners
 shall submit each study with recommendations and findings to the  gover-
 nor, the temporary president of the senate and the speaker of the assem-
 bly within two years of the effective date of this act.
   § 18. The transportation law is amended by adding a new section 144 to
 read as follows:
   §  144.  FEES  AND  CHARGES. THE COMMISSIONER OR AUTHORIZED OFFICER OR
 EMPLOYEE OF THE DEPARTMENT SHALL CHARGE AND COLLECT EIGHTY-FIVE  DOLLARS
 FOR  THE  INSPECTION  OR REINSPECTION OF ALL MOTOR VEHICLES TRANSPORTING
 PASSENGERS SUBJECT TO THE DEPARTMENT'S INSPECTION REQUIREMENTS  PURSUANT
 TO  SECTION  ONE  HUNDRED FORTY OF THIS ARTICLE, EXCEPT SUCH:  (A) MOTOR
 VEHICLES OPERATED UNDER CONTRACT WITH A MUNICIPALITY TO  PROVIDE  STATE-
 WIDE  MASS  TRANSPORTATION  OPERATING  ASSISTANCE  ELIGIBLE SERVICE; (B)
 MOTOR VEHICLES OPERATED UNDER CONTRACT WITH  A  MUNICIPALITY  OR  SCHOOL
 DISTRICT  TO  PROVIDE  SCHOOL-RELATED TRANSPORTATION SERVICES; (C) MOTOR
 VEHICLES AUTHORIZED BY THE COMMISSIONER OF HEALTH TO  PROVIDE  NON-EMER-
 GENCY  MEDICAL  TRANSPORTATION  SERVICES;  AND  (D)  MOTOR VEHICLES USED
 PRIMARILY TO TRANSPORT PASSENGERS PURSUANT TO SUBPARAGRAPHS (I),  (III),
 (IV),  AND  (V) OF PARAGRAPH A OF SUBDIVISION TWO OF SECTION ONE HUNDRED
 FORTY OF THIS ARTICLE. THE DEPARTMENT MAY DENY INSPECTION OF  ANY  MOTOR
 VEHICLE  TRANSPORTING  PASSENGERS SUBJECT TO THE DEPARTMENT'S INSPECTION
 REQUIREMENTS IF SUCH FEE IS NOT PAID WITHIN  NINETY  DAYS  OF  THE  DATE
 NOTED ON THE DEPARTMENT INVOICE.

 S. 1509--C                         107                        A. 2009--C
 
   §  19.  Paragraph  1 and subparagraph (A) of paragraph 2 of subsection
 (f) of section 3420 of the insurance law,  paragraph  1  as  amended  by
 chapter  305  of the laws of 1995 and subparagraph (A) of paragraph 2 as
 separately amended by chapters 547 and 568 of  the  laws  of  1997,  are
 amended to read as follows:
   (1)  No  policy insuring against loss resulting from liability imposed
 by law for bodily injury or death suffered by any natural person arising
 out of the ownership, maintenance and use  of  a  motor  vehicle  OR  AN
 ALTERED  MOTOR  VEHICLE  COMMONLY  REFERRED  TO AS A "STRETCH LIMOUSINE"
 HAVING A SEATING CAPACITY OF EIGHT OR MORE PASSENGERS USED IN THE  BUSI-
 NESS  OF  CARRYING  OR  TRANSPORTING PASSENGERS FOR HIRE, by the insured
 shall be issued or delivered by any authorized insurer  upon  any  motor
 vehicle  OR  AN ALTERED MOTOR VEHICLE COMMONLY REFERRED TO AS A "STRETCH
 LIMOUSINE" HAVING A SEATING CAPACITY OF EIGHT OR MORE PASSENGERS USED IN
 THE BUSINESS OF CARRYING OR TRANSPORTING PASSENGERS FOR HIRE, then prin-
 cipally garaged or principally used in this state unless it  contains  a
 provision whereby the insurer agrees that it will pay to the insured, as
 defined in such provision, subject to the terms and conditions set forth
 therein  to be prescribed by the board of directors of the Motor Vehicle
 Accident Indemnification Corporation and approved by the superintendent,
 all sums, not exceeding a maximum amount or limit of  twenty-five  thou-
 sand  dollars  exclusive  of interest and costs, on account of injury to
 and all sums, not exceeding a maximum amount or limit of fifty  thousand
 dollars  exclusive  of  interest  and  costs, on account of death of one
 person, in any one accident, and the maximum amount or limit, subject to
 such limit for any one person so injured of fifty thousand dollars or so
 killed of one hundred thousand dollars, exclusive of interest and costs,
 on account of injury to, or death of, more than one person  in  any  one
 accident,  which  the insured or his legal representative shall be enti-
 tled to recover as damages from an owner or  operator  of  an  uninsured
 motor  vehicle,  unidentified motor vehicle which leaves the scene of an
 accident, a motor vehicle registered in this state as to  which  at  the
 time  of  the  accident  there  was  not in effect a policy of liability
 insurance, a stolen vehicle, a motor vehicle operated without permission
 of the owner, an insured  motor  vehicle  where  the  insurer  disclaims
 liability or denies coverage or an unregistered vehicle because of bodi-
 ly  injury,  sickness  or  disease, including death resulting therefrom,
 sustained by the insured, caused by accident occurring in this state and
 arising out of the ownership, maintenance or use of such motor  vehicle.
 No  payment  for  non-economic  loss  shall  be  made  under such policy
 provision to a covered person unless such person has incurred a  serious
 injury,  as  such terms are defined in section five thousand one hundred
 two of this chapter. Such policy shall  not  duplicate  any  element  of
 basic  economic  loss provided for under article fifty-one of this chap-
 ter. No payments of first party benefits for basic  economic  loss  made
 pursuant  to  such article shall diminish the obligations of the insurer
 under this policy provision for the payment  of  non-economic  loss  and
 economic  loss  in  excess  of  basic economic loss. Notwithstanding any
 inconsistent provisions of section three thousand four  hundred  twenty-
 five  of this article, any such policy which does not contain the afore-
 said provisions shall be construed as if such provisions  were  embodied
 therein.
   (A)  Any such policy shall, at the option of the insured, also provide
 supplementary  uninsured/underinsured  motorists  insurance  for  bodily
 injury,  in an amount up to the bodily injury liability insurance limits
 of coverage provided under such policy, subject  to  a  maximum  of  two

 S. 1509--C                         108                        A. 2009--C
 
 hundred  fifty  thousand dollars because of bodily injury to or death of
 one person in any one accident  and,  subject  to  such  limit  for  one
 person,  up to five hundred thousand dollars because of bodily injury to
 or  death  of  two  or  more  persons in any one accident, or a combined
 single limit policy of five hundred thousand dollars because  of  bodily
 injury  to  or death of one or more persons in any one accident; AND ANY
 SUCH POLICY INSURING AGAINST LOSS RESULTING FROM  LIABILITY  IMPOSED  BY
 LAW  FOR  BODILY  INJURY OR DEATH SUFFERED BY ANY NATURAL PERSON ARISING
 OUT OF THE OWNERSHIP, MAINTENANCE, AND USE OF AN ALTERED  MOTOR  VEHICLE
 COMMONLY  REFERRED TO AS A "STRETCH LIMOUSINE" HAVING A SEATING CAPACITY
 OF EIGHT OR MORE PASSENGERS USED IN THE BUSINESS OF CARRYING  OR  TRANS-
 PORTING    PASSENGERS    FOR    HIRE,    SHALL   PROVIDE   SUPPLEMENTARY
 UNINSURED/UNDERINSURED MOTORISTS INSURANCE  FOR  BODILY  INJURY,  IN  AN
 AMOUNT  OF  A COMBINED SINGLE LIMIT OF ONE MILLION FIVE HUNDRED THOUSAND
 DOLLARS BECAUSE OF BODILY INJURY OR DEATH OF ONE OR MORE PERSONS IN  ANY
 ONE  ACCIDENT.  Provided  however,  an  insurer issuing ANY such policy,
 EXCEPT A POLICY INSURING AGAINST LOSS RESULTING FROM  LIABILITY  IMPOSED
 BY LAW FOR BODILY INJURY OR DEATH SUFFERED BY ANY NATURAL PERSON ARISING
 OUT  OF  THE OWNERSHIP, MAINTENANCE, AND USE OF AN ALTERED MOTOR VEHICLE
 COMMONLY REFERRED TO AS A "STRETCH LIMOUSINE" HAVING A SEATING  CAPACITY
 OF  EIGHT  OR MORE PASSENGERS USED IN THE BUSINESS OF CARRYING OR TRANS-
 PORTING PASSENGERS FOR HIRE, in lieu of  offering  to  the  insured  the
 coverages stated above, may provide supplementary uninsured/underinsured
 motorists  insurance  for  bodily  injury, in an amount up to the bodily
 injury liability insurance limits of coverage provided under such  poli-
 cy,  subject  to  a  maximum  of one hundred thousand dollars because of
 bodily injury to or death of one person in any one accident and, subject
 to such limit for one person,  up  to  three  hundred  thousand  dollars
 because  of  bodily injury to or death of two or more persons in any one
 accident, or a combined single limit policy of  three  hundred  thousand
 dollars  because  of bodily injury to or death of one or more persons in
 any one accident, if  such  insurer  also  makes  available  a  personal
 umbrella  policy  with  liability  coverage  limits  up to at least five
 hundred thousand dollars which also provides coverage for  supplementary
 uninsured/underinsured       motorists       claims.       Supplementary
 uninsured/underinsured motorists insurance shall  provide  coverage,  in
 any  state  or  Canadian  province, if the limits of liability under all
 bodily injury liability bonds and insurance policies  of  another  motor
 vehicle liable for damages are in a lesser amount than the bodily injury
 liability  insurance  limits  of  coverage provided by such policy. Upon
 written   request   by   any    insured    covered    by    supplemental
 uninsured/underinsured motorists insurance or his duly authorized repre-
 sentative  and  upon  disclosure  by the insured of the insured's bodily
 injury  and  supplemental  uninsured/underinsured  motorists   insurance
 coverage  limits,  the insurer of any other owner or operator of another
 motor vehicle against which a claim has been made  for  damages  to  the
 insured shall disclose, within forty-five days of the request, the bodi-
 ly  injury liability insurance limits of its coverage provided under the
 policy or all bodily injury liability bonds. The time of the insured  to
 make  any  supplementary uninsured/underinsured motorist claim, shall be
 tolled during the period the insurer of any other owner or  operator  of
 another  motor  vehicle  that  may be liable for damages to the insured,
 fails to so disclose its coverage. As a condition precedent to the obli-
 gation   of   the   insurer   to    pay    under    the    supplementary
 uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
 liability of all bodily injury liability  bonds  or  insurance  policies

 S. 1509--C                         109                        A. 2009--C
 
 applicable  at the time of the accident shall be exhausted by payment of
 judgments or settlements.
   §  20. This act shall take effect immediately; provided, however, that
 sections eight, ten, eleven and fourteen of this act shall  take  effect
 on the first of November next succeeding the date on which it shall have
 become  a  law;  provided, however, sections nine and twelve of this act
 shall take effect on the one hundred eightieth day after it  shall  have
 become  a law; provided, however, sections thirteen and nineteen of this
 act shall take effect on the first day of January  next  succeeding  the
 date on which it shall have become a law and shall apply to all policies
 issued,  renewed,  altered, or modified on or after such date; provided,
 however, section fifteen of this act shall take effect on the  thirtieth
 day  after  it shall have become a law; provided, however, section eigh-
 teen of this act shall take effect October 1, 2019;  provided,  further,
 that  effective  immediately,  the  department of transportation and the
 department of motor vehicles are authorized and directed  to  promulgate
 such  rules  and  regulations as are necessary for the implementation of
 this act on its effective date.
 
                                 PART JJJ

   Section 1. Section 150.10 of the criminal procedure law is amended  by
 adding a new subdivision 3 to read as follows:
   3.  BEFORE  ISSUING  AN  APPEARANCE  TICKET  A POLICE OFFICER OR OTHER
 PUBLIC SERVANT MUST INFORM THE ARRESTEE  THAT  THEY  MAY  PROVIDE  THEIR
 CONTACT  INFORMATION  FOR THE PURPOSES OF RECEIVING A COURT NOTIFICATION
 TO REMIND THEM OF THEIR COURT APPEARANCE DATE FROM THE COURT OR A CERTI-
 FIED PRETRIAL SERVICES AGENCY.  SUCH CONTACT INFORMATION MAY INCLUDE ONE
 OR MORE PHONE NUMBERS, A RESIDENTIAL ADDRESS OR  ADDRESS  AT  WHICH  THE
 ARRESTEE  RECEIVES  MAIL,  OR  AN EMAIL ADDRESS. THE CONTACT INFORMATION
 SHALL BE RECORDED AND BE TRANSMITTED TO  THE  LOCAL  CRIMINAL  COURT  AS
 REQUIRED BY SECTION 150.80 OF THIS ARTICLE.
   §  1-a. Subdivision 1 of section 150.20 of the criminal procedure law,
 as amended by chapter 550 of the laws of 1987, is  amended  to  read  as
 follows:
   1.  (A)  Whenever  a  police officer is authorized pursuant to section
 140.10 OF THIS TITLE to arrest a person without a warrant for an offense
 other than a class A, B, C or D felony or a violation of section 130.25,
 130.40, 205.10, 205.17, 205.19 or 215.56 of  the  penal  law,  he  [may]
 SHALL,  EXCEPT  AS SET OUT IN PARAGRAPH (B) OF THIS SUBDIVISION, subject
 to the provisions of subdivisions three and four of  section  150.40  OF
 THIS  TITLE,  instead  issue to and serve upon such person an appearance
 ticket.
   (B) AN OFFICER IS NOT REQUIRED TO ISSUE AN APPEARANCE TICKET IF:
   (I) THE PERSON HAS ONE OR MORE OUTSTANDING  LOCAL  CRIMINAL  COURT  OR
 SUPERIOR COURT WARRANTS;
   (II)  THE PERSON HAS FAILED TO APPEAR IN COURT PROCEEDINGS IN THE LAST
 TWO YEARS;
   (III) THE PERSON HAS BEEN GIVEN A REASONABLE OPPORTUNITY TO MAKE THEIR
 VERIFIABLE IDENTITY AND A METHOD OF CONTACT KNOWN, AND HAS  BEEN  UNABLE
 OR  UNWILLING  TO  DO  SO,  SO  THAT  A CUSTODIAL ARREST IS NECESSARY TO
 SUBJECT THE INDIVIDUAL TO THE  JURISDICTION  OF  THE  COURT.    FOR  THE
 PURPOSES  OF  THIS  SECTION,  AN  OFFICER MAY RELY ON VARIOUS FACTORS TO
 DETERMINE A PERSON'S IDENTITY, INCLUDING BUT  NOT  LIMITED  TO  PERSONAL
 KNOWLEDGE  OF  SUCH PERSON, SUCH PERSON'S SELF-IDENTIFICATION, OR PHOTO-
 GRAPHIC IDENTIFICATION. THERE IS NO REQUIREMENT THAT  A  PERSON  PRESENT

 S. 1509--C                         110                        A. 2009--C
 
 PHOTOGRAPHIC  IDENTIFICATION  IN ORDER TO BE ISSUED AN APPEARANCE TICKET
 IN LIEU OF ARREST WHERE THE PERSON'S IDENTITY IS  OTHERWISE  VERIFIABLE;
 HOWEVER,  IF OFFERED BY SUCH PERSON, AN OFFICER SHALL ACCEPT AS EVIDENCE
 OF  IDENTITY THE FOLLOWING: A VALID DRIVER'S LICENSE OR NON-DRIVER IDEN-
 TIFICATION CARD ISSUED BY THE COMMISSIONER OF MOTOR VEHICLES, THE FEDER-
 AL GOVERNMENT, ANY UNITED STATES TERRITORY, COMMONWEALTH OR  POSSESSION,
 THE  DISTRICT  OF  COLUMBIA,  A STATE GOVERNMENT OR MUNICIPAL GOVERNMENT
 WITHIN THE UNITED STATES OR A PROVINCIAL GOVERNMENT OF THE  DOMINION  OF
 CANADA;  A  VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR ANY
 OTHER COUNTRY; AN IDENTIFICATION CARD ISSUED BY THE ARMED FORCES OF  THE
 UNITED  STATES;  A  PUBLIC  BENEFIT CARD, AS DEFINED IN PARAGRAPH (A) OF
 SUBDIVISION ONE OF SECTION 158.00 OF THE PENAL LAW;
   (IV) THE PERSON IS CHARGED WITH A CRIME BETWEEN MEMBERS  OF  THE  SAME
 FAMILY  OR HOUSEHOLD, AS DEFINED IN SUBDIVISION ONE OF SECTION 530.11 OF
 THIS CHAPTER;
   (V) THE PERSON IS CHARGED WITH A CRIME DEFINED IN ARTICLE 130  OF  THE
 PENAL LAW;
   (VI)  IT  REASONABLY  APPEARS  THE PERSON SHOULD BE BROUGHT BEFORE THE
 COURT FOR CONSIDERATION OF ISSUANCE OF AN ORDER OF PROTECTION,  PURSUANT
 TO  SECTION  530.13  OF THIS CHAPTER, BASED ON THE FACTS OF THE CRIME OR
 OFFENSE THAT THE OFFICER HAS REASONABLE CAUSE TO BELIEVE OCCURRED;
   (VII) THE PERSON IS CHARGED WITH A  CRIME  FOR  WHICH  THE  COURT  MAY
 SUSPEND OR REVOKE HIS OR HER DRIVER LICENSE;
   (VIII)  IT  REASONABLY  APPEARS  TO THE OFFICER, BASED ON THE OBSERVED
 BEHAVIOR OF THE INDIVIDUAL IN THE PRESENT CONTACT WITH THE  OFFICER  AND
 FACTS REGARDING THE PERSON'S CONDITION THAT INDICATES A SIGN OF DISTRESS
 TO  SUCH  A  DEGREE  THAT  THE  PERSON WOULD FACE HARM WITHOUT IMMEDIATE
 MEDICAL OR MENTAL HEALTH CARE, THAT BRINGING THE PERSON BEFORE THE COURT
 WOULD BE IN SUCH PERSON'S INTEREST IN ADDRESSING  THAT  NEED;  PROVIDED,
 HOWEVER,  THAT  BEFORE  MAKING  THE  ARREST,  THE OFFICER SHALL MAKE ALL
 REASONABLE  EFFORTS  TO  ASSIST  THE  PERSON  IN  SECURING   APPROPRIATE
 SERVICES.
   § 1-b. Section 150.30 of the criminal procedure law is REPEALED.
   §  1-c.  Subdivision 1 of section 150.40 of the criminal procedure law
 is amended to read as follows:
   1. An appearance ticket must be made returnable AT A DATE AS  SOON  AS
 POSSIBLE,  BUT IN NO EVENT LATER THAN TWENTY DAYS FROM THE DATE OF ISSU-
 ANCE, OR AT A LATER DATE, WITH THE COURT'S PERMISSION DUE TO  ENROLLMENT
 IN  A  PRE-ARRAIGNMENT DIVERSION PROGRAM. THE APPEARANCE TICKET SHALL BE
 MADE RETURNABLE in a local criminal court designated in  section  100.55
 OF  THIS TITLE as one with which an information for the offense in ques-
 tion may be filed.
   § 1-d. The criminal procedure law is amended by adding a  new  section
 150.80 to read as follows:
 § 150.80 COURT APPEARANCE REMINDERS.
   1.  A POLICE OFFICER OR OTHER PUBLIC SERVANT WHO HAS ISSUED AND SERVED
 AN APPEARANCE TICKET MUST, WITHIN TWENTY-FOUR HOURS OF ISSUANCE, FILE OR
 CAUSE TO BE FILED WITH THE LOCAL CRIMINAL COURT  THE  APPEARANCE  TICKET
 AND ANY CONTACT INFORMATION MADE AVAILABLE PURSUANT TO SUBDIVISION THREE
 OF SECTION 150.10 OF THIS ARTICLE.
   2.  UPON  RECEIPT OF THE APPEARANCE TICKET AND ANY CONTACT INFORMATION
 MADE AVAILABLE PURSUANT TO SUBDIVISION THREE OF SECTION 150.10  OF  THIS
 ARTICLE, THE LOCAL CRIMINAL COURT SHALL ISSUE A COURT APPEARANCE REMIND-
 ER  AND  NOTIFY THE ARRESTEE OF THEIR COURT APPEARANCES BY TEXT MESSAGE,
 TELEPHONE CALL, ELECTRONIC MAIL, OR FIRST CLASS MAIL. THE LOCAL CRIMINAL
 COURT MAY PARTNER WITH A CERTIFIED PRETRIAL SERVICES AGENCY OR  AGENCIES

 S. 1509--C                         111                        A. 2009--C
 
 IN  THAT COUNTY TO PROVIDE SUCH NOTIFICATION AND SHALL INCLUDE A COPY OF
 THE APPEARANCE TICKET.
   3.  A LOCAL CRIMINAL COURT IS NOT REQUIRED TO ISSUE A COURT APPEARANCE
 REMINDER IF THE APPEARANCE TICKET  REQUIRES  THE  ARRESTEE'S  APPEARANCE
 WITHIN  SEVENTY-TWO HOURS OF ITS ISSUANCE, OR NO CONTACT INFORMATION HAS
 BEEN PROVIDED.
   § 1-e. Subdivisions 1, 2, 4, 5, 6, 7 and 9 of section  500.10  of  the
 criminal procedure law are amended and a new subdivision 3-a is added to
 read as follows:
   1.  "Principal"  means a defendant in a criminal action or proceeding,
 or a person adjudged a material witness therein, or any other person  so
 involved  therein  that  [he]  THE  PRINCIPAL may by law be compelled to
 appear before a court for the purpose  of  having  such  court  exercise
 control  over  [his]  THE PRINCIPAL'S person to secure [his] THE PRINCI-
 PAL'S future attendance at the action or proceeding when  required,  and
 who  in  fact  either  is  before the court for such purpose or has been
 before it and been subjected to such control.
   2. "Release on own recognizance." A  court  releases  a  principal  on
 [his]  THE  PRINCIPAL'S  own  recognizance when, having acquired control
 over [his] THE PRINCIPAL'S person, it permits [him] THE PRINCIPAL to  be
 at  liberty  during  the  pendency  of the criminal action or proceeding
 involved upon condition that [he]  THE  PRINCIPAL  will  appear  thereat
 whenever  [his]  THE  PRINCIPAL'S attendance may be required and will at
 all times render [himself] THE PRINCIPAL  amenable  to  the  orders  and
 processes of the court.
   3-A. "RELEASE UNDER NON-MONETARY CONDITIONS." A COURT RELEASES A PRIN-
 CIPAL UNDER NON-MONETARY CONDITIONS WHEN, HAVING ACQUIRED CONTROL OVER A
 PERSON, IT AUTHORIZES THE PERSON TO BE AT LIBERTY DURING THE PENDENCY OF
 THE  CRIMINAL  ACTION OR PROCEEDING INVOLVED UNDER CONDITIONS ORDERED BY
 THE COURT, WHICH SHALL BE THE LEAST  RESTRICTIVE  CONDITIONS  THAT  WILL
 REASONABLY  ASSURE  THE PRINCIPAL'S RETURN TO COURT. SUCH CONDITIONS MAY
 INCLUDE, AMONG OTHER  CONDITIONS  REASONABLE  UNDER  THE  CIRCUMSTANCES:
 THAT THE PRINCIPAL BE IN CONTACT WITH A PRETRIAL SERVICES AGENCY SERVING
 PRINCIPALS IN THAT COUNTY; THAT THE PRINCIPAL ABIDE BY REASONABLE, SPEC-
 IFIED  RESTRICTIONS  ON  TRAVEL THAT ARE REASONABLY RELATED TO AN ACTUAL
 RISK OF FLIGHT FROM THE JURISDICTION; THAT THE  PRINCIPAL  REFRAIN  FROM
 POSSESSING  A  FIREARM,  DESTRUCTIVE  DEVICE  OR OTHER DANGEROUS WEAPON;
 THAT, WHEN IT IS SHOWN PURSUANT TO SUBDIVISION FOUR OF SECTION 510.45 OF
 THIS TITLE THAT NO OTHER REALISTIC MONETARY CONDITION OR SET OF NON-MON-
 ETARY CONDITIONS WILL SUFFICE TO REASONABLY ASSURE THE  PERSON'S  RETURN
 TO COURT, THE PERSON BE PLACED IN REASONABLE PRETRIAL SUPERVISION WITH A
 PRETRIAL  SERVICES  AGENCY SERVING PRINCIPALS IN THAT COUNTY; THAT, WHEN
 IT IS SHOWN PURSUANT TO PARAGRAPH (A) OF  SUBDIVISION  FOUR  OF  SECTION
 510.40  OF  THIS TITLE THAT NO OTHER REALISTIC NON-MONETARY CONDITION OR
 SET OF NON-MONETARY CONDITIONS WILL SUFFICE  TO  REASONABLY  ASSURE  THE
 PRINCIPAL'S  RETURN TO COURT, THE PRINCIPAL'S LOCATION BE MONITORED WITH
 AN APPROVED ELECTRONIC MONITORING DEVICE, IN ACCORDANCE WITH SUCH SUBDI-
 VISION FOUR OF SECTION 510.40 OF THIS TITLE.  A PRINCIPAL SHALL  NOT  BE
 REQUIRED  TO  PAY  FOR  ANY  PART OF THE COST OF RELEASE ON NON-MONETARY
 CONDITIONS.
   4. "Commit to the custody of the sheriff." A court commits a principal
 to the custody of the sheriff when, having acquired control  over  [his]
 THE PRINCIPAL'S person, it orders that [he] THE PRINCIPAL be confined in
 the custody of the sheriff during the pendency of the criminal action or
 proceeding involved.

 S. 1509--C                         112                        A. 2009--C
 
   5.  "Securing  order" means an order of a court committing a principal
 to the custody of the sheriff[,] or fixing bail,  WHERE  AUTHORIZED,  or
 releasing [him on his] THE PRINCIPAL ON THE PRINCIPAL'S own recognizance
 OR RELEASING THE PRINCIPAL UNDER NON-MONETARY CONDITIONS.
   6.  "Order of recognizance or bail" means a securing order releasing a
 principal on [his] THE PRINCIPAL'S own recognizance OR  UNDER  NON-MONE-
 TARY CONDITIONS or, WHERE AUTHORIZED, fixing bail.
   7.  "Application  for  recognizance or bail" means an application by a
 principal that the court, instead of committing [him] THE  PRINCIPAL  to
 or  retaining  [him] THE PRINCIPAL in the custody of the sheriff, either
 release [him on his own] THE PRINCIPAL ON THE PRINCIPAL'S  OWN  recogni-
 zance [or], RELEASE UNDER NON-MONETARY CONDITIONS, OR, WHERE AUTHORIZED,
 fix bail.
   9. "Bail" means cash bail [or], a bail bond OR MONEY PAID WITH A CRED-
 IT CARD.
   §  1-f.    Section  500.10 of the criminal procedure law is amended by
 adding two new subdivisions 21 and 22 to read as follows:
   21. "QUALIFIES FOR ELECTRONIC MONITORING," FOR PURPOSES OF SUBDIVISION
 FOUR OF SECTION 510.40 OF THIS TITLE, MEANS  A  PERSON  CHARGED  WITH  A
 FELONY,  A MISDEMEANOR CRIME OF DOMESTIC VIOLENCE, A MISDEMEANOR DEFINED
 IN ARTICLE ONE HUNDRED THIRTY OF THE PENAL LAW, A CRIME AND THE  CIRCUM-
 STANCES  OF  PARAGRAPH  (B) OF SUBDIVISION TWO OF SECTION 530.60 OF THIS
 TITLE APPLY, OR ANY MISDEMEANOR WHERE THE  DEFENDANT  STANDS  PREVIOUSLY
 CONVICTED,  WITHIN  THE  PAST FIVE YEARS, OF A VIOLENT FELONY OFFENSE AS
 DEFINED IN SECTION 70.02 OF THE PENAL LAW.  FOR  THE  PURPOSES  OF  THIS
 SUBDIVISION,  IN  CALCULATING  SUCH FIVE YEAR PERIOD, ANY PERIOD OF TIME
 DURING WHICH THE DEFENDANT WAS INCARCERATED FOR ANY REASON  BETWEEN  THE
 TIME  OF  THE  COMMISSION  OF  ANY  SUCH  PREVIOUS CRIME AND THE TIME OF
 COMMISSION OF THE PRESENT CRIME SHALL BE EXCLUDED  AND  SUCH  FIVE  YEAR
 PERIOD SHALL BE EXTENDED BY A PERIOD OR PERIODS EQUAL TO THE TIME SERVED
 UNDER SUCH INCARCERATION.
   22. "MISDEMEANOR CRIME OF DOMESTIC VIOLENCE," FOR PURPOSES OF SUBDIVI-
 SION TWENTY-ONE OF THIS SECTION, MEANS A MISDEMEANOR UNDER THE PENAL LAW
 PROVISIONS  AND  CIRCUMSTANCES  DESCRIBED  IN SUBDIVISION ONE OF SECTION
 530.11 OF THIS TITLE.
   § 2. Section 510.10 of the criminal procedure law, as amended by chap-
 ter 459 of the laws of 1984, is amended to read as follows:
 § 510.10 Securing order; when required; ALTERNATIVES AVAILABLE; STANDARD
            TO BE APPLIED.
   1. When a principal, whose  future  court  attendance  at  a  criminal
 action  or proceeding is or may be required, [initially] comes under the
 control of a court, such court [must] SHALL,  IN  ACCORDANCE  WITH  THIS
 TITLE,  by  a  securing  order[,  either] release [him] THE PRINCIPAL on
 [his] THE PRINCIPAL'S own  recognizance,  RELEASE  THE  PRINCIPAL  UNDER
 NON-MONETARY  CONDITIONS, OR, WHERE AUTHORIZED, fix bail or commit [him]
 THE PRINCIPAL to the custody of the sheriff.  IN ALL SUCH CASES,  EXCEPT
 WHERE ANOTHER TYPE OF SECURING ORDER IS SHOWN TO BE REQUIRED BY LAW, THE
 COURT  SHALL  RELEASE THE PRINCIPAL PENDING TRIAL ON THE PRINCIPAL'S OWN
 RECOGNIZANCE, UNLESS IT IS DEMONSTRATED AND THE COURT MAKES AN  INDIVID-
 UALIZED DETERMINATION THAT THE PRINCIPAL POSES A RISK OF FLIGHT TO AVOID
 PROSECUTION.  IF SUCH A FINDING IS MADE, THE COURT MUST SELECT THE LEAST
 RESTRICTIVE ALTERNATIVE AND CONDITION OR CONDITIONS THAT WILL REASONABLY
 ASSURE THE PRINCIPAL'S RETURN TO COURT.  THE  COURT  SHALL  EXPLAIN  ITS
 CHOICE OF RELEASE, RELEASE WITH CONDITIONS, BAIL OR REMAND ON THE RECORD
 OR IN WRITING.

 S. 1509--C                         113                        A. 2009--C
 
   2.  A  PRINCIPAL  IS  ENTITLED TO REPRESENTATION BY COUNSEL UNDER THIS
 CHAPTER IN PREPARING AN APPLICATION FOR RELEASE, WHEN A  SECURING  ORDER
 IS  BEING  CONSIDERED  AND  WHEN  A SECURING ORDER IS BEING REVIEWED FOR
 MODIFICATION, REVOCATION OR TERMINATION. IF THE PRINCIPAL IS FINANCIALLY
 UNABLE TO OBTAIN COUNSEL, COUNSEL SHALL BE ASSIGNED TO THE PRINCIPAL.
   3.  IN  CASES  OTHER  THAN  AS  DESCRIBED  IN SUBDIVISION FOUR OF THIS
 SECTION THE COURT SHALL RELEASE THE PRINCIPAL PENDING TRIAL ON THE PRIN-
 CIPAL'S OWN RECOGNIZANCE, UNLESS THE COURT FINDS ON  THE  RECORD  OR  IN
 WRITING  THAT  RELEASE  ON  THE  PRINCIPAL'S  OWN  RECOGNIZANCE WILL NOT
 REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT.  IN  SUCH  INSTANCES,
 THE  COURT  SHALL  RELEASE  THE PRINCIPAL UNDER NON-MONETARY CONDITIONS,
 SELECTING THE LEAST RESTRICTIVE ALTERNATIVE  AND  CONDITIONS  THAT  WILL
 REASONABLY  ASSURE  THE  PRINCIPAL'S  RETURN TO COURT.   THE COURT SHALL
 EXPLAIN ITS CHOICE OF ALTERNATIVE AND CONDITIONS ON  THE  RECORD  OR  IN
 WRITING.
   4.  WHERE  THE PRINCIPAL STANDS CHARGED WITH A QUALIFYING OFFENSE, THE
 COURT, UNLESS OTHERWISE PROHIBITED BY LAW, MAY IN ITS DISCRETION RELEASE
 THE PRINCIPAL PENDING TRIAL ON THE PRINCIPAL'S OWN RECOGNIZANCE OR UNDER
 NON-MONETARY CONDITIONS, FIX BAIL, OR, WHERE THE  DEFENDANT  IS  CHARGED
 WITH  A  QUALIFYING  OFFENSE WHICH IS A FELONY, THE COURT MAY COMMIT THE
 PRINCIPAL TO THE CUSTODY OF THE SHERIFF. A PRINCIPAL STANDS CHARGED WITH
 A QUALIFYING OFFENSE FOR THE PURPOSES OF THIS SUBDIVISION WHEN HE OR SHE
 STANDS CHARGED WITH:
   (A) A FELONY ENUMERATED IN SECTION 70.02 OF THE PENAL LAW, OTHER  THAN
 BURGLARY  IN  THE SECOND DEGREE AS DEFINED IN SUBDIVISION TWO OF SECTION
 140.25 OF THE PENAL LAW OR ROBBERY IN THE SECOND DEGREE  AS  DEFINED  IN
 SUBDIVISION ONE OF SECTION 160.10 OF THE PENAL LAW;
   (B) A CRIME INVOLVING WITNESS INTIMIDATION UNDER SECTION 215.15 OF THE
 PENAL LAW;
   (C)  A  CRIME INVOLVING WITNESS TAMPERING UNDER SECTION 215.11, 215.12
 OR 215.13 OF THE PENAL LAW;
   (D) A CLASS A FELONY DEFINED IN THE PENAL LAW, OTHER THAN  IN  ARTICLE
 TWO  HUNDRED  TWENTY OF SUCH LAW WITH THE EXCEPTION OF SECTION 220.77 OF
 SUCH LAW;
   (E) A FELONY SEX OFFENSE DEFINED IN SECTION 70.80 OF THE PENAL LAW  OR
 A  CRIME INVOLVING INCEST AS DEFINED IN SECTION 255.25, 255.26 OR 255.27
 OF SUCH LAW, OR A MISDEMEANOR DEFINED IN ARTICLE ONE HUNDRED  THIRTY  OF
 SUCH LAW;
   (F)  CONSPIRACY  IN  THE SECOND DEGREE AS DEFINED IN SECTION 105.15 OF
 THE PENAL LAW, WHERE THE UNDERLYING ALLEGATION OF SUCH  CHARGE  IS  THAT
 THE  DEFENDANT  CONSPIRED  TO COMMIT A CLASS A FELONY DEFINED IN ARTICLE
 ONE HUNDRED TWENTY-FIVE OF THE PENAL LAW;
   (G) MONEY LAUNDERING IN SUPPORT OF TERRORISM IN THE  FIRST  DEGREE  AS
 DEFINED  IN SECTION 470.24 OF THE PENAL LAW; MONEY LAUNDERING IN SUPPORT
 OF TERRORISM IN THE SECOND DEGREE AS DEFINED IN SECTION  470.23  OF  THE
 PENAL  LAW;  OR  A  FELONY CRIME OF TERRORISM AS DEFINED IN ARTICLE FOUR
 HUNDRED NINETY OF THE PENAL LAW, OTHER THAN THE CRIME DEFINED IN SECTION
 490.20 OF SUCH LAW;
   (H) CRIMINAL CONTEMPT IN THE SECOND DEGREE AS DEFINED  IN  SUBDIVISION
 THREE OF SECTION 215.50 OF THE PENAL LAW, CRIMINAL CONTEMPT IN THE FIRST
 DEGREE  AS  DEFINED  IN SUBDIVISION (B), (C) OR (D) OF SECTION 215.51 OF
 THE PENAL LAW OR AGGRAVATED CRIMINAL  CONTEMPT  AS  DEFINED  IN  SECTION
 215.52 OF THE PENAL LAW, AND THE UNDERLYING ALLEGATION OF SUCH CHARGE OF
 CRIMINAL  CONTEMPT  IN THE SECOND DEGREE, CRIMINAL CONTEMPT IN THE FIRST
 DEGREE OR AGGRAVATED CRIMINAL CONTEMPT IS THAT THE DEFENDANT VIOLATED  A
 DULY SERVED ORDER OF PROTECTION WHERE THE PROTECTED PARTY IS A MEMBER OF

 S. 1509--C                         114                        A. 2009--C
 
 THE  DEFENDANT'S  SAME FAMILY OR HOUSEHOLD AS DEFINED IN SUBDIVISION ONE
 OF SECTION 530.11 OF THIS ARTICLE; OR
   (I)  FACILITATING  A  SEXUAL  PERFORMANCE BY A CHILD WITH A CONTROLLED
 SUBSTANCE OR ALCOHOL AS DEFINED IN SECTION 263.30 OF THE PENAL LAW,  USE
 OF  A  CHILD IN A SEXUAL PERFORMANCE AS DEFINED IN SECTION 263.05 OF THE
 PENAL LAW OR LURING A CHILD AS DEFINED IN  SUBDIVISION  ONE  OF  SECTION
 120.70 OF THE PENAL LAW.
   5.  NOTWITHSTANDING  THE  PROVISIONS OF SUBDIVISIONS THREE AND FOUR OF
 THIS SECTION, WITH RESPECT TO ANY CHARGE FOR WHICH BAIL OR REMAND IS NOT
 ORDERED, AND FOR WHICH THE  COURT  WOULD  NOT  OR  COULD  NOT  OTHERWISE
 REQUIRE  BAIL  OR REMAND, A DEFENDANT MAY, AT ANY TIME, REQUEST THAT THE
 COURT SET BAIL IN A NOMINAL AMOUNT REQUESTED BY  THE  DEFENDANT  IN  THE
 FORM  SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION 520.10 OF
 THIS TITLE; IF THE COURT IS SATISFIED THAT THE REQUEST IS VOLUNTARY, THE
 COURT SHALL SET SUCH BAIL IN SUCH AMOUNT.
   6. When a securing order is revoked or  otherwise  terminated  in  the
 course of an uncompleted action or proceeding but the principal's future
 court  attendance  still is or may be required and [he] THE PRINCIPAL is
 still under the control of a court, a new securing order must be issued.
 When the court revokes or otherwise terminates a  securing  order  which
 committed  the  principal to the custody of the sheriff, the court shall
 give written notification to the sheriff of such  revocation  or  termi-
 nation of the securing order.
   §  3.  Section 510.20 of the criminal procedure law is amended to read
 as follows:
 § 510.20  Application for [recognizance or  bail;  making  and  determi-
              nation thereof in general] A CHANGE IN SECURING ORDER.
   1.  Upon any occasion when a court [is required to issue] HAS ISSUED a
 securing  order with respect to a principal[, or at any time when a] AND
 THE principal is confined in the custody of the sheriff as a  result  of
 THE SECURING ORDER OR a previously issued securing order, [he] THE PRIN-
 CIPAL  may make an application for recognizance, RELEASE UNDER NON-MONE-
 TARY CONDITIONS or bail.
   2.  (A) THE PRINCIPAL IS ENTITLED TO REPRESENTATION BY COUNSEL IN  THE
 MAKING  AND PRESENTATION OF SUCH APPLICATION. IF THE PRINCIPAL IS FINAN-
 CIALLY UNABLE TO OBTAIN COUNSEL, COUNSEL SHALL BE ASSIGNED TO THE  PRIN-
 CIPAL.
   (B)  Upon such application, the principal must be accorded an opportu-
 nity to be heard, PRESENT EVIDENCE and  to  contend  that  an  order  of
 recognizance,  RELEASE  UNDER  NON-MONETARY CONDITIONS or, WHERE AUTHOR-
 IZED, bail must or should issue, that the court should release  [him  on
 his] THE PRINCIPAL ON THE PRINCIPAL'S own recognizance OR UNDER NON-MON-
 ETARY  CONDITIONS  rather  than fix bail, and that if bail is AUTHORIZED
 AND fixed it should be in a suggested amount and form.
   § 4. Intentionally omitted.
   § 5. Section 510.30 of the criminal procedure law, subparagraph (v) of
 paragraph (a) of subdivision 2 as amended by chapter 920 of the laws  of
 1982,  subparagraph (vi) of paragraph (a) of subdivision 2 as renumbered
 by chapter 447 of the laws of 1977,  subparagraph  (vii)  as  added  and
 subparagraphs  (viii)  and  (ix)  of  paragraph  (a) of subdivision 2 as
 renumbered by section 1 of part D of chapter 491 of the  laws  of  2012,
 and  subdivision  3  as  added  by  chapter  788 of the laws of 1981, is
 amended to read as follows:
 § 510.30 Application for [recognizance or bail] SECURING ORDER; rules of
              law and criteria controlling determination.

 S. 1509--C                         115                        A. 2009--C
 
   1. [Determinations of applications for recognizance or bail are not in
 all cases discretionary but are subject to rules, prescribed in  article
 five  hundred  thirty  and  other provisions of law relating to specific
 kinds of criminal actions and proceedings, providing (a)  that  in  some
 circumstances  such  an  application must as a matter of law be granted,
 (b) that in others it must as a matter of law be denied and the  princi-
 pal committed to or retained in the custody of the sheriff, and (c) that
 in  others  the  granting  or  denial  thereof  is  a matter of judicial
 discretion.
   2. To the extent that the issuance of an order of recognizance or bail
 and the terms thereof are matters of discretion rather than of  law,  an
 application  is  determined  on  the  basis of the following factors and
 criteria:
   (a)] With respect to any principal, the court  IN  ALL  CASES,  UNLESS
 OTHERWISE PROVIDED BY LAW, must [consider the] IMPOSE THE LEAST RESTRIC-
 TIVE  kind  and  degree  of  control or restriction that is necessary to
 secure [his court attendance]  THE  PRINCIPAL'S  RETURN  TO  COURT  when
 required.  In  determining  that matter, the court must, on the basis of
 available information, consider and take into account[:
   (i) The principal's character, reputation, habits  and  mental  condi-
 tion;
   (ii) His employment and financial resources; and
   (iii)  His  family  ties and the length of his residence if any in the
 community; and
   (iv) His] INFORMATION ABOUT THE PRINCIPAL  THAT  IS  RELEVANT  TO  THE
 PRINCIPAL'S RETURN TO COURT, INCLUDING:
   (A) THE PRINCIPAL'S ACTIVITIES AND HISTORY;
   (B) IF THE PRINCIPAL IS A DEFENDANT, THE CHARGES FACING THE PRINCIPAL;
   (C) THE PRINCIPAL'S criminal CONVICTION record if any; [and
   (v)  His]  (D)  THE  PRINCIPAL'S  record of previous adjudication as a
 juvenile delinquent, as retained pursuant to section 354.2 of the family
 court act, or, of pending cases where fingerprints are retained pursuant
 to section 306.1 of such act, or a youthful offender, if any; [and
   (vi) His] (e) THE PRINCIPAL'S previous record [if any in responding to
 court appearances when required or] with  respect  to  flight  to  avoid
 criminal prosecution; [and
   (vii)]   (F)   IF  MONETARY  BAIL  IS  AUTHORIZED,  ACCORDING  TO  THE
 RESTRICTIONS SET FORTH IN THIS TITLE, THE PRINCIPAL'S INDIVIDUAL  FINAN-
 CIAL  CIRCUMSTANCES, AND, IN CASES WHERE BAIL IS AUTHORIZED, THE PRINCI-
 PAL'S ABILITY TO POST BAIL WITHOUT POSING UNDUE HARDSHIP, AS WELL AS HIS
 OR HER ABILITY TO OBTAIN A  SECURED,  UNSECURED,  OR  PARTIALLY  SECURED
 BOND;
   (G)  Where  the  principal is charged with a crime or crimes against a
 member or members of the same  family  or  household  as  that  term  is
 defined  in subdivision one of section 530.11 of this title, the follow-
 ing factors:
   [(A)] (I) any violation by the principal of  an  order  of  protection
 issued  by  any  court  for the protection of a member or members of the
 same family or household as that term is defined in subdivision  one  of
 section 530.11 of this title, whether or not such order of protection is
 currently in effect; and
   [(B)]  (II) the principal's history of use or possession of a firearm;
 and
   [(viii)] (H) If [he] THE PRINCIPAL is a defendant, [the weight of  the
 evidence against him in the pending criminal action and any other factor
 indicating  probability or improbability of conviction; or,] in the case

 S. 1509--C                         116                        A. 2009--C
 
 of an application for [bail or recognizance] A  SECURING  ORDER  pending
 appeal, the merit or lack of merit of the appeal[; and
   (ix)  If  he  is  a  defendant,  the sentence which may be or has been
 imposed upon conviction].
   [(b)] 2. Where the principal is a  defendant-appellant  in  a  pending
 appeal  from  a judgment of conviction, the court must also consider the
 likelihood of ultimate reversal of the judgment.  A  determination  that
 the  appeal  is  palpably  without  merit  alone justifies, but does not
 require, a denial of the application, regardless  of  any  determination
 made  with  respect to the factors specified in [paragraph (a)] SUBDIVI-
 SION ONE OF THIS SECTION.
   3. When bail or recognizance is ordered, the court  shall  inform  the
 principal, if [he] THE PRINCIPAL is a defendant charged with the commis-
 sion of a felony, that the release is conditional and that the court may
 revoke  the order of release and MAY BE AUTHORIZED TO commit the princi-
 pal to the custody of the sheriff in accordance with the  provisions  of
 subdivision  two of section 530.60 of this chapter if [he] THE PRINCIPAL
 commits a subsequent felony while at liberty upon such order.
   § 6. Section 510.40 of the criminal procedure law is amended  to  read
 as follows:
 §  510.40  [Application for recognizance or bail; determination thereof,
              form of securing order and execution thereof] COURT NOTIFI-
              CATION TO PRINCIPAL OF CONDITIONS OF RELEASE AND OF ALLEGED
              VIOLATIONS OF CONDITIONS OF RELEASE.
   1.  [An application for recognizance or bail must be determined  by  a
 securing order which either:
   (a)    Grants  the  application  and releases the principal on his own
 recognizance; or
   (b)  Grants the application and fixes bail; or
   (c)  Denies the application and commits the principal to,  or  retains
 him in, the custody of the sheriff.
   2.]  Upon  ordering  that a principal be released on [his] THE PRINCI-
 PAL'S own recognizance, OR RELEASED UNDER NON-MONETARY  CONDITIONS,  OR,
 IF  BAIL HAS BEEN FIXED, UPON THE POSTING OF BAIL, the court must direct
 [him] THE PRINCIPAL to appear  in  the  criminal  action  or  proceeding
 involved  whenever  [his] THE PRINCIPAL'S attendance may be required and
 to [render himself] BE at all times amenable to the orders and processes
 of the court.  If such principal is in the custody of the sheriff or  at
 liberty  upon  bail at the time of the order, the court must direct that
 [he] THE PRINCIPAL be discharged from such custody or, as the  case  may
 be, that [his] THE PRINCIPAL'S bail be exonerated.
   [3.]  2.  Upon the issuance of an order fixing bail, WHERE AUTHORIZED,
 and upon the posting thereof, the court must examine the bail to  deter-
 mine whether it complies with the order.  If it does, the court must, in
 the  absence  of  some  factor  or circumstance which in law requires or
 authorizes disapproval thereof,  approve  the  bail  and  must  issue  a
 certificate of release, authorizing the principal to be at liberty, and,
 if  [he]  THE  PRINCIPAL  is  in the custody of the sheriff at the time,
 directing the sheriff to discharge [him] THE PRINCIPAL  therefrom.    If
 the bail fixed is not posted, or is not approved after being posted, the
 court  must  order that the principal be committed to the custody of the
 sheriff.  IN THE EVENT OF ANY SUCH NON-APPROVAL, THE COURT SHALL EXPLAIN
 PROMPTLY IN WRITING THE REASONS THEREFOR.
   3. NON-MONETARY CONDITIONS OF  RELEASE  SHALL  BE  INDIVIDUALIZED  AND
 ESTABLISHED  IN  WRITING  BY THE COURT. AT FUTURE COURT APPEARANCES, THE
 COURT SHALL CONSIDER A LESSENING OF CONDITIONS OR MODIFICATION OF CONDI-

 S. 1509--C                         117                        A. 2009--C
 
 TIONS TO A LESS BURDENSOME FORM BASED ON THE PRINCIPAL'S COMPLIANCE WITH
 SUCH CONDITIONS OF RELEASE. IN THE EVENT OF ALLEGED NON-COMPLIANCE  WITH
 THE  CONDITIONS  OF  RELEASE  IN  AN IMPORTANT RESPECT, PURSUANT TO THIS
 SUBDIVISION,  ADDITIONAL  CONDITIONS MAY BE IMPOSED BY THE COURT, ON THE
 RECORD OR IN WRITING, ONLY AFTER NOTICE OF THE FACTS  AND  CIRCUMSTANCES
 OF  SUCH  ALLEGED  NON-COMPLIANCE,  REASONABLE  UNDER THE CIRCUMSTANCES,
 AFFORDING THE PRINCIPAL AND THE PRINCIPAL'S ATTORNEY AND THE  PEOPLE  AN
 OPPORTUNITY TO PRESENT RELEVANT, ADMISSIBLE EVIDENCE, RELEVANT WITNESSES
 AND  TO  CROSS-EXAMINE  WITNESSES, AND A FINDING BY CLEAR AND CONVINCING
 EVIDENCE THAT THE PRINCIPAL VIOLATED A CONDITION OF RELEASE IN AN IMPOR-
 TANT RESPECT.   FOLLOWING SUCH A  FINDING,  IN  DETERMINING  WHETHER  TO
 IMPOSE ADDITIONAL CONDITIONS FOR NON-COMPLIANCE, THE COURT SHALL CONSID-
 ER  AND  MAY SELECT CONDITIONS CONSISTENT WITH THE COURT'S OBLIGATION TO
 IMPOSE THE LEAST RESTRICTIVE CONDITION OR CONDITIONS THAT  WILL  REASON-
 ABLY  ASSURE THE DEFENDANT'S RETURN TO COURT. THE COURT SHALL EXPLAIN ON
 THE RECORD OR IN WRITING THE REASONS FOR ITS DETERMINATION AND  FOR  ANY
 CHANGES TO THE CONDITIONS IMPOSED.
   4.  (A) ELECTRONIC MONITORING OF A PRINCIPAL'S LOCATION MAY BE ORDERED
 ONLY IF THE COURT FINDS, AFTER NOTICE, AN OPPORTUNITY TO BE HEARD AND AN
 INDIVIDUALIZED DETERMINATION EXPLAINED ON THE RECORD OR IN WRITING, THAT
 THE DEFENDANT QUALIFIES FOR ELECTRONIC  MONITORING  IN  ACCORDANCE  WITH
 SUBDIVISION  TWENTY-ONE  OF  SECTION  500.10 OF THIS TITLE, AND NO OTHER
 REALISTIC NON-MONETARY CONDITION OR SET OF NON-MONETARY CONDITIONS  WILL
 SUFFICE TO REASONABLY ASSURE A PRINCIPAL'S RETURN TO COURT.
   (B)  THE  SPECIFIC  METHOD OF ELECTRONIC MONITORING OF THE PRINCIPAL'S
 LOCATION MUST BE APPROVED BY THE COURT.  IT MUST BE THE  LEAST  RESTRIC-
 TIVE  PROCEDURE  AND  METHOD THAT WILL REASONABLY ASSURE THE PRINCIPAL'S
 RETURN TO COURT, AND UNOBTRUSIVE TO THE GREATEST EXTENT PRACTICABLE.
   (C) ELECTRONIC MONITORING OF  THE  LOCATION  OF  A  PRINCIPAL  MAY  BE
 CONDUCTED ONLY BY A PUBLIC ENTITY UNDER THE SUPERVISION AND CONTROL OF A
 COUNTY  OR  MUNICIPALITY  OR  A  NON-PROFIT ENTITY UNDER CONTRACT TO THE
 COUNTY, MUNICIPALITY OR THE STATE. A COUNTY  OR  MUNICIPALITY  SHALL  BE
 AUTHORIZED  TO ENTER INTO A CONTRACT WITH ANOTHER COUNTY OR MUNICIPALITY
 IN THE STATE TO MONITOR  PRINCIPALS  UNDER  NON-MONETARY  CONDITIONS  OF
 RELEASE  IN ITS COUNTY, BUT COUNTIES, MUNICIPALITIES AND THE STATE SHALL
 NOT CONTRACT WITH ANY PRIVATE FOR-PROFIT ENTITY FOR SUCH PURPOSES.
   (D) ELECTRONIC MONITORING OF A PRINCIPAL'S LOCATION MAY BE FOR A MAXI-
 MUM PERIOD OF SIXTY DAYS, AND MAY BE  RENEWED  FOR  SUCH  PERIOD,  AFTER
 NOTICE,  AN OPPORTUNITY TO BE HEARD AND A DE NOVO, INDIVIDUALIZED DETER-
 MINATION IN ACCORDANCE WITH THIS SUBDIVISION, WHICH SHALL  BE  EXPLAINED
 ON THE RECORD OR IN WRITING.
   A  DEFENDANT  SUBJECT  TO  ELECTRONIC  LOCATION  MONITORING UNDER THIS
 SUBDIVISION SHALL BE CONSIDERED HELD OR CONFINED IN CUSTODY FOR PURPOSES
 OF SECTION 180.80 OF THIS CHAPTER AND SHALL BE CONSIDERED  COMMITTED  TO
 THE  CUSTODY  OF THE SHERIFF FOR PURPOSES OF SECTION 170.70 OF THE CHAP-
 TER, AS APPLICABLE.
   5. IF A PRINCIPAL IS RELEASED UNDER NON-MONETARY CONDITIONS, THE COURT
 SHALL, ON THE RECORD AND IN AN INDIVIDUALIZED WRITTEN DOCUMENT  PROVIDED
 TO  THE  PRINCIPAL, NOTIFY THE PRINCIPAL, IN PLAIN LANGUAGE AND A MANNER
 SUFFICIENTLY CLEAR AND SPECIFIC:
   (A) OF ANY CONDITIONS TO WHICH THE PRINCIPAL IS SUBJECT, TO SERVE AS A
 GUIDE FOR THE PRINCIPAL'S CONDUCT; AND
   (B) THAT THE POSSIBLE CONSEQUENCES FOR VIOLATION OF SUCH  A  CONDITION
 MAY  INCLUDE REVOCATION OF THE SECURING ORDER AND THE ORDERING OF A MORE
 RESTRICTIVE SECURING ORDER.

 S. 1509--C                         118                        A. 2009--C
 
   § 7. The criminal procedure law is amended by  adding  a  new  section
 510.43 to read as follows:
 § 510.43 COURT APPEARANCES: ADDITIONAL NOTIFICATIONS.
   THE  COURT  OR,  UPON  DIRECTION  OF  THE  COURT, A CERTIFIED PRETRIAL
 SERVICES AGENCY, SHALL NOTIFY ALL PRINCIPALS RELEASED UNDER NON-MONETARY
 CONDITIONS AND ON RECOGNIZANCE OF ALL COURT APPEARANCES  IN  ADVANCE  BY
 TEXT  MESSAGE,  TELEPHONE CALL, ELECTRONIC MAIL OR FIRST CLASS MAIL. THE
 CHIEF ADMINISTRATOR OF THE COURTS SHALL, PURSUANT TO SUBDIVISION ONE  OF
 SECTION  10.40 OF THIS CHAPTER, DEVELOP A FORM WHICH SHALL BE OFFERED TO
 THE PRINCIPAL AT COURT APPEARANCES. ON SUCH FORM, WHICH UPON  COMPLETION
 SHALL  BE  RETAINED IN THE COURT FILE, THE PRINCIPAL MAY SELECT ONE SUCH
 PREFERRED MANNER OF NOTICE.
   § 8. The criminal procedure law is amended by  adding  a  new  section
 510.45 to read as follows:
 § 510.45 PRETRIAL SERVICES AGENCIES.
   1.  THE  OFFICE  OF  COURT  ADMINISTRATION SHALL CERTIFY AND REGULARLY
 REVIEW FOR RECERTIFICATION ONE OR MORE  PRETRIAL  SERVICES  AGENCIES  IN
 EACH  COUNTY  TO  MONITOR  PRINCIPALS RELEASED UNDER NON-MONETARY CONDI-
 TIONS.  SUCH OFFICE SHALL MAINTAIN A LISTING ON ITS PUBLIC WEBSITE IDEN-
 TIFYING BY COUNTY EACH PRETRIAL SERVICES  AGENCY  SO  CERTIFIED  IN  THE
 STATE.
   2.  EVERY  SUCH  AGENCY SHALL BE A PUBLIC ENTITY UNDER THE SUPERVISION
 AND CONTROL OF A COUNTY OR MUNICIPALITY OR  A  NON-PROFIT  ENTITY  UNDER
 CONTRACT  TO  THE COUNTY, MUNICIPALITY OR THE STATE. A COUNTY OR MUNICI-
 PALITY SHALL BE AUTHORIZED TO ENTER INTO A CONTRACT WITH ANOTHER  COUNTY
 OR  MUNICIPALITY  IN  THE STATE TO MONITOR PRINCIPALS UNDER NON-MONETARY
 CONDITIONS OF RELEASE IN ITS COUNTY, BUT  COUNTIES,  MUNICIPALITIES  AND
 THE STATE SHALL NOT CONTRACT WITH ANY PRIVATE FOR-PROFIT ENTITY FOR SUCH
 PURPOSES.
   3.  (A) ANY QUESTIONNAIRE, INSTRUMENT OR TOOL USED WITH A PRINCIPAL IN
 THE PROCESS OF  CONSIDERING  OR  DETERMINING  THE  PRINCIPAL'S  POSSIBLE
 RELEASE  ON  RECOGNIZANCE,  RELEASE  UNDER NON-MONETARY CONDITIONS OR ON
 BAIL, OR USED WITH A PRINCIPAL IN THE PROCESS OF CONSIDERING  OR  DETER-
 MINING  A CONDITION OR CONDITIONS OF RELEASE OR MONITORING BY A PRETRIAL
 SERVICES AGENCY, SHALL BE PROMPTLY MADE AVAILABLE TO THE  PRINCIPAL  AND
 THE PRINCIPAL'S COUNSEL UPON WRITTEN REQUEST.  ANY SUCH BLANK FORM QUES-
 TIONNAIRE,  INSTRUMENT  OR  TOOL  REGULARLY  USED IN THE COUNTY FOR SUCH
 PURPOSE OR A RELATED PURPOSE SHALL  BE  MADE  AVAILABLE  TO  ANY  PERSON
 PROMPTLY UPON REQUEST.
   (B) ANY SUCH QUESTIONNAIRE, INSTRUMENT OR TOOL USED TO INFORM DETERMI-
 NATIONS ON RELEASE OR CONDITIONS OF RELEASE SHALL BE:
   (I)  DESIGNED  AND  IMPLEMENTED  IN A WAY THAT ENSURES THE RESULTS ARE
 FREE FROM DISCRIMINATION ON THE BASIS OF RACE, NATIONAL ORIGIN, SEX,  OR
 ANY OTHER PROTECTED CLASS; AND
   (II)  EMPIRICALLY VALIDATED AND REGULARLY REVALIDATED, WITH SUCH VALI-
 DATION AND REVALIDATION STUDIES AND ALL UNDERLYING DATA, EXCEPT PERSONAL
 IDENTIFYING INFORMATION  FOR  ANY  DEFENDANT,  PUBLICLY  AVAILABLE  UPON
 REQUEST.
   4.  SUPERVISION  BY  A  PRE-TRIAL  SERVICES AGENCY MAY BE ORDERED AS A
 NON-MONETARY CONDITION PURSUANT TO THIS TITLE ONLY IF THE  COURT  FINDS,
 AFTER  NOTICE, AN OPPORTUNITY TO BE HEARD AND AN INDIVIDUALIZED DETERMI-
 NATION EXPLAINED ON THE RECORD OR IN WRITING, THAT  NO  OTHER  REALISTIC
 NON-MONETARY CONDITION OR SET OF NON-MONETARY CONDITIONS WILL SUFFICE TO
 REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT.
   5.  EACH  PRETRIAL  SERVICE  AGENCY  CERTIFIED  BY THE OFFICE OF COURT
 ADMINISTRATION PURSUANT TO THIS SECTION SHALL AT THE END  OF  EACH  YEAR

 S. 1509--C                         119                        A. 2009--C
 
 PREPARE  AND  FILE  WITH  SUCH OFFICE AN ANNUAL REPORT, WHICH THE OFFICE
 SHALL COMPILE, PUBLISH ON ITS WEBSITE AND MAKE AVAILABLE UPON REQUEST TO
 MEMBERS OF THE PUBLIC. SUCH REPORTS SHALL NOT INCLUDE ANY PERSONAL IDEN-
 TIFYING  INFORMATION FOR ANY INDIVIDUAL DEFENDANTS. EACH SUCH REPORT, IN
 ADDITION TO OTHER RELEVANT INFORMATION, SHALL SET  FORTH,  DISAGGREGATED
 BY EACH COUNTY SERVED:
   (A) THE NUMBER OF DEFENDANTS SUPERVISED BY THE AGENCY;
   (B)  THE LENGTH OF TIME (IN MONTHS) EACH SUCH PERSON WAS SUPERVISED BY
 THE AGENCY PRIOR TO ACQUITTAL, DISMISSAL, RELEASE ON RECOGNIZANCE, REVO-
 CATION OF RELEASE ON CONDITIONS, AND SENTENCING;
   (C) THE RACE, ETHNICITY, AGE AND SEX OF EACH PERSON SUPERVISED;
   (D) THE CRIMES WITH WHICH EACH PERSON SUPERVISED WAS CHARGED;
   (E) THE NUMBER OF PERSONS SUPERVISED FOR WHOM RELEASE CONDITIONS  WERE
 MODIFIED  BY THE COURT, DESCRIBING GENERALLY FOR EACH PERSON OR GROUP OF
 PERSONS THE TYPE AND NATURE OF THE  CONDITION  OR  CONDITIONS  ADDED  OR
 REMOVED;
   (F) THE NUMBER OF PERSONS SUPERVISED FOR WHOM RELEASE UNDER CONDITIONS
 WAS REVOKED BY THE COURT, AND THE BASIS FOR SUCH REVOCATIONS; AND
   (G)  THE COURT DISPOSITION IN EACH SUPERVISED CASE, INCLUDING SENTENC-
 ING INFORMATION.
   § 9. Section 510.50 of the criminal procedure law is amended  to  read
 as follows:
 § 510.50 Enforcement of securing order.
   1.  When  the attendance of a principal confined in the custody of the
 sheriff is required at the criminal action or proceeding at a particular
 time and place, the court may compel such attendance  by  directing  the
 sheriff  to  produce [him] THE PRINCIPAL at such time and place.  If the
 principal is at liberty on [his] THE  PRINCIPAL'S  own  recognizance  OR
 NON-MONETARY  CONDITIONS  or  on bail, [his] THE PRINCIPAL'S  attendance
 may be achieved or compelled by various methods, including  notification
 and  the  issuance  of  a bench warrant, prescribed by law in provisions
 governing such matters with respect to the particular kind of action  or
 proceeding involved.
   2.  EXCEPT  WHEN  THE  PRINCIPAL  IS CHARGED WITH A NEW CRIME WHILE AT
 LIBERTY, ABSENT RELEVANT, CREDIBLE EVIDENCE DEMONSTRATING THAT A PRINCI-
 PAL'S FAILURE TO APPEAR FOR A SCHEDULED COURT  APPEARANCE  WAS  WILLFUL,
 THE  COURT, PRIOR TO ISSUING A BENCH WARRANT FOR A FAILURE TO APPEAR FOR
 A SCHEDULED COURT APPEARANCE, SHALL PROVIDE AT LEAST  FORTY-EIGHT  HOURS
 NOTICE TO THE PRINCIPAL OR THE PRINCIPAL'S COUNSEL THAT THE PRINCIPAL IS
 REQUIRED  TO  APPEAR,  IN  ORDER TO GIVE THE PRINCIPAL AN OPPORTUNITY TO
 APPEAR VOLUNTARILY.
   § 10. Paragraph (b) of subdivision 2 of section 520.10 of the criminal
 procedure law, as amended by chapter 784 of the laws of 1972, is amended
 to read as follows:
   (b) The court [may] SHALL direct that the bail be posted in any one of
 [two] THREE or more of the forms specified in subdivision  one  OF  THIS
 SECTION,  designated  in  the  alternative,  and may designate different
 amounts varying with the forms[;], EXCEPT THAT ONE OF THE FORMS SHALL BE
 EITHER AN UNSECURED OR PARTIALLY SECURED SURETY BOND, AS SELECTED BY THE
 COURT.
   § 11. Section 530.10 of the criminal procedure law is amended to  read
 as follows:
 § 530.10 Order  of recognizance RELEASE UNDER NON-MONETARY CONDITIONS or
            bail; in general.
   Under circumstances prescribed in this article, a court, upon applica-
 tion of a defendant charged with or convicted of an offense, is required

 S. 1509--C                         120                        A. 2009--C
 
 [or authorized to order bail or recognizance] TO ISSUE A SECURING  ORDER
 for  [the  release  or prospective release of] such defendant during the
 pendency of either:
   1.  A criminal action based upon such charge; or
   2.   An appeal taken by the defendant from a judgment of conviction or
 a sentence or from an order of an intermediate appellate court affirming
 or modifying a judgment of conviction or a sentence.
   § 12. Subdivision 4 of section 530.11 of the criminal  procedure  law,
 as  added  by  chapter  186  of  the laws of 1997, is amended to read as
 follows:
   4. When a person is arrested for  an  alleged  family  offense  or  an
 alleged  violation  of  an  order  of  protection  or temporary order of
 protection or arrested pursuant to a warrant issued by  the  supreme  or
 family  court, and the supreme or family court, as applicable, is not in
 session, such person shall be brought before a local criminal  court  in
 the  county  of arrest or in the county in which such warrant is return-
 able pursuant to article one hundred twenty of this chapter. Such  local
 criminal  court  may issue any order authorized under subdivision eleven
 of section 530.12 of this article, section one hundred  fifty-four-d  or
 one hundred fifty-five of the family court act or subdivision three-b of
 section  two  hundred  forty or subdivision two-a of section two hundred
 fifty-two of the domestic relations  law,  in  addition  to  discharging
 other  arraignment  responsibilities  as  set  forth in this chapter. In
 making such order, the local criminal court shall consider DE  NOVO  the
 [bail] recommendation AND SECURING ORDER, if any, made by the supreme or
 family  court  as  indicated  on  the warrant or certificate of warrant.
 Unless the petitioner or complainant requests otherwise, the  court,  in
 addition  to  scheduling further criminal proceedings, if any, regarding
 such alleged family offense or violation  allegation,  shall  make  such
 matter  returnable in the supreme or family court, as applicable, on the
 next day such court is in session.
   § 13. Paragraph (a) of subdivision 8 of section 530.13 of the criminal
 procedure law, as added by chapter 388 of the laws of 1984,  is  amended
 to read as follows:
   (a) revoke an order of recognizance, RELEASE UNDER NON-MONETARY CONDI-
 TIONS or bail and commit the defendant to custody; or
   §  14. The opening paragraph of subdivision 1 of section 530.13 of the
 criminal procedure law, as amended by chapter 137 of the laws  of  2007,
 is amended to read as follows:
   When  any  criminal  action is pending, and the court has not issued a
 temporary order of protection pursuant to section 530.12 of  this  arti-
 cle,  the  court,  in  addition to the other powers conferred upon it by
 this chapter, may for good  cause  shown  issue  a  temporary  order  of
 protection  in  conjunction  with  any  securing  order  [committing the
 defendant to the custody of the sheriff or as a condition of a pre-trial
 release, or as a condition of release on  bail]  or  an  adjournment  in
 contemplation of dismissal. In addition to any other conditions, such an
 order may require that the defendant:
   §  15. Subdivision 11 of section 530.12 of the criminal procedure law,
 as amended by chapter 498 of the laws of 1993, the opening paragraph  as
 amended  by chapter 597 of the laws of 1998, paragraph (a) as amended by
 chapter 222 of the laws of 1994, paragraph (d) as amended by chapter 644
 of the laws of 1996, is amended to read as follows:
   11. If a defendant is brought before the court for failure to obey any
 lawful order issued under this section, or an order of protection issued
 by a court of competent jurisdiction in another  state,  territorial  or

 S. 1509--C                         121                        A. 2009--C
 
 tribal  jurisdiction,  and  if, after hearing, the court is satisfied by
 competent proof that the defendant has willfully failed to obey any such
 order, the court may:
   (a)  revoke  an  order  of  recognizance OR RELEASE UNDER NON-MONETARY
 CONDITIONS or revoke an order of bail or order forfeiture of  such  bail
 and commit the defendant to custody; or
   (b)  restore  the case to the calendar when there has been an adjourn-
 ment in contemplation of dismissal and commit the defendant to  custody;
 or
   (c)  revoke  a conditional discharge in accordance with section 410.70
 of this chapter and impose probation supervision or impose a sentence of
 imprisonment in accordance with the penal  law  based  on  the  original
 conviction; or
   (d) revoke probation in accordance with section 410.70 of this chapter
 and  impose  a sentence of imprisonment in accordance with the penal law
 based on the original conviction. In addition, if the act which  consti-
 tutes  the  violation  of  the order of protection or temporary order of
 protection is a crime or a violation the defendant may be  charged  with
 and tried for that crime or violation.
   §  16.  Section  530.20  of  the criminal procedure law, as amended by
 chapter 531 of the laws of 1975, subparagraph (ii) of paragraph  (b)  of
 subdivision  2 as amended by chapter 218 of the laws of 1979, is amended
 to read as follows:
 § 530.20 [Order of recognizance or bail;] SECURING ORDER by local crimi-
              nal court when action is pending therein.
   When a criminal action is pending in  a  local  criminal  court,  such
 court,  upon application of a defendant, [must or may order recognizance
 or bail] SHALL PROCEED as follows:
   1. [When the defendant is charged, by information, simplified informa-
 tion, prosecutor's information or misdemeanor complaint, with an offense
 or offenses of less than felony grade only, the court must order  recog-
 nizance  or bail.] (A) IN CASES OTHER THAN AS DESCRIBED IN PARAGRAPH (B)
 OF THIS SUBDIVISION THE COURT SHALL RELEASE THE PRINCIPAL PENDING  TRIAL
 ON  THE  PRINCIPAL'S  OWN  RECOGNIZANCE,  UNLESS  THE COURT FINDS ON THE
 RECORD OR IN WRITING THAT RELEASE ON THE  PRINCIPAL'S  OWN  RECOGNIZANCE
 WILL  NOT  REASONABLY  ASSURE  THE  PRINCIPAL'S RETURN TO COURT. IN SUCH
 INSTANCES, THE COURT SHALL  RELEASE  THE  PRINCIPAL  UNDER  NON-MONETARY
 CONDITIONS,  SELECTING  THE LEAST RESTRICTIVE ALTERNATIVE AND CONDITIONS
 THAT WILL REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT.  THE  COURT
 SHALL  EXPLAIN ITS CHOICE OF ALTERNATIVE AND CONDITIONS ON THE RECORD OR
 IN WRITING.
   (B) WHERE THE PRINCIPAL STANDS CHARGED WITH A QUALIFYING OFFENSE,  THE
 COURT, UNLESS OTHERWISE PROHIBITED BY LAW, MAY IN ITS DISCRETION RELEASE
 THE PRINCIPAL PENDING TRIAL ON THE PRINCIPAL'S OWN RECOGNIZANCE OR UNDER
 NON-MONETARY  CONDITIONS,  FIX  BAIL, OR, WHERE THE DEFENDANT IS CHARGED
 WITH A QUALIFYING OFFENSE WHICH IS A FELONY, THE COURT  MAY  COMMIT  THE
 PRINCIPAL  TO  THE  CUSTODY  OF THE SHERIFF. THE COURT SHALL EXPLAIN ITS
 CHOICE OF RELEASE, RELEASE WITH CONDITIONS, BAIL OR REMAND ON THE RECORD
 OR IN WRITING. A PRINCIPAL STANDS CHARGED WITH A QUALIFYING OFFENSE WHEN
 HE OR SHE STANDS CHARGED WITH:
   (I) A FELONY ENUMERATED IN SECTION 70.02 OF THE PENAL LAW, OTHER  THAN
 BURGLARY  IN  THE SECOND DEGREE AS DEFINED IN SUBDIVISION TWO OF SECTION
 140.25 OF THE PENAL LAW OR ROBBERY IN THE SECOND DEGREE  AS  DEFINED  IN
 SUBDIVISION ONE OF SECTION 160.10 OF THE PENAL LAW;
   (II)  A  CRIME  INVOLVING WITNESS INTIMIDATION UNDER SECTION 215.15 OF
 THE PENAL LAW;

 S. 1509--C                         122                        A. 2009--C
 
   (III) A CRIME INVOLVING WITNESS TAMPERING UNDER SECTION 215.11, 215.12
 OR 215.13 OF THE PENAL LAW;
   (IV)  A CLASS A FELONY DEFINED IN THE PENAL LAW, OTHER THAN IN ARTICLE
 TWO HUNDRED TWENTY OF SUCH LAW WITH THE EXCEPTION OF SECTION  220.77  OF
 SUCH LAW;
   (V)  A FELONY SEX OFFENSE DEFINED IN SECTION 70.80 OF THE PENAL LAW OR
 A CRIME INVOLVING INCEST AS DEFINED IN SECTION 255.25, 255.26 OR  255.27
 OF  SUCH  LAW, OR A MISDEMEANOR DEFINED IN ARTICLE ONE HUNDRED THIRTY OF
 SUCH LAW;
   (VI) CONSPIRACY IN THE SECOND DEGREE AS DEFINED IN SECTION  105.15  OF
 THE  PENAL  LAW,  WHERE THE UNDERLYING ALLEGATION OF SUCH CHARGE IS THAT
 THE DEFENDANT CONSPIRED TO COMMIT A CLASS A FELONY  DEFINED  IN  ARTICLE
 ONE HUNDRED TWENTY-FIVE OF THE PENAL LAW;
   (VII)  MONEY LAUNDERING IN SUPPORT OF TERRORISM IN THE FIRST DEGREE AS
 DEFINED IN SECTION 470.24 OF THE PENAL LAW; MONEY LAUNDERING IN  SUPPORT
 OF  TERRORISM  IN  THE SECOND DEGREE AS DEFINED IN SECTION 470.23 OF THE
 PENAL LAW; OR A FELONY CRIME OF TERRORISM AS  DEFINED  IN  ARTICLE  FOUR
 HUNDRED NINETY OF THE PENAL LAW, OTHER THAN THE CRIME DEFINED IN SECTION
 490.20 OF SUCH LAW;
   (VIII)  CRIMINAL  CONTEMPT IN THE SECOND DEGREE AS DEFINED IN SUBDIVI-
 SION THREE OF SECTION 215.50 OF THE PENAL LAW, CRIMINAL CONTEMPT IN  THE
 FIRST DEGREE AS DEFINED IN SUBDIVISION (B), (C) OR (D) OF SECTION 215.51
 OF  THE  PENAL LAW OR AGGRAVATED CRIMINAL CONTEMPT AS DEFINED IN SECTION
 215.52 OF THE PENAL LAW, AND THE UNDERLYING ALLEGATION OF SUCH CHARGE OF
 CRIMINAL CONTEMPT IN THE SECOND DEGREE, CRIMINAL CONTEMPT IN  THE  FIRST
 DEGREE  OR AGGRAVATED CRIMINAL CONTEMPT IS THAT THE DEFENDANT VIOLATED A
 DULY SERVED ORDER OF PROTECTION WHERE THE PROTECTED PARTY IS A MEMBER OF
 THE DEFENDANT'S SAME FAMILY OR HOUSEHOLD AS DEFINED IN  SUBDIVISION  ONE
 OF SECTION 530.11 OF THIS ARTICLE; OR
   (IX)  FACILITATING  A  SEXUAL PERFORMANCE BY A CHILD WITH A CONTROLLED
 SUBSTANCE OR ALCOHOL AS DEFINED IN SECTION 263.30 OF THE PENAL LAW,  USE
 OF  A  CHILD IN A SEXUAL PERFORMANCE AS DEFINED IN SECTION 263.05 OF THE
 PENAL LAW OR LURING A CHILD AS DEFINED IN  SUBDIVISION  ONE  OF  SECTION
 120.70 OF THE PENAL LAW.
   (D)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPHS (A) AND (B) OF THIS
 SUBDIVISION, WITH RESPECT TO ANY CHARGE FOR WHICH BAIL OR REMAND IS  NOT
 ORDERED,  AND  FOR  WHICH  THE  COURT  WOULD  NOT OR COULD NOT OTHERWISE
 REQUIRE BAIL OR REMAND, A DEFENDANT MAY, AT ANY TIME, REQUEST  THAT  THE
 COURT  SET  BAIL  IN  A NOMINAL AMOUNT REQUESTED BY THE DEFENDANT IN THE
 FORM SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION 520.10  OF
 THIS TITLE; IF THE COURT IS SATISFIED THAT THE REQUEST IS VOLUNTARY, THE
 COURT SHALL SET SUCH BAIL IN SUCH AMOUNT.
   2.  When the defendant is charged, by felony complaint, with a felony,
 the court may, in its  discretion,  order  recognizance,  RELEASE  UNDER
 NON-MONETARY  CONDITIONS,  or,  WHERE  AUTHORIZED,  bail  OR  COMMIT THE
 DEFENDANT TO THE CUSTODY OF THE SHERIFF except as otherwise provided  in
 SUBDIVISION ONE OF THIS SECTION OR this subdivision:
   (a) A city court, a town court or a village court may not order recog-
 nizance or bail when (i) the defendant is charged with a class A felony,
 or  (ii)  [it  appears  that]  the  defendant  has  two  previous felony
 convictions;
   (b) No local criminal court  may  order  recognizance,  RELEASE  UNDER
 NON-MONETARY CONDITIONS or bail with respect to a defendant charged with
 a felony unless and until:
   (i)    The  district  attorney  has been heard in the matter or, after
 knowledge or notice of the application and reasonable opportunity to  be

 S. 1509--C                         123                        A. 2009--C
 
 heard,  has  failed  to appear at the proceeding or has otherwise waived
 his right to do so; and
   (ii) The court [has] AND COUNSEL FOR THE DEFENDANT HAVE been furnished
 with  a  report  of the division of criminal justice services concerning
 the defendant's criminal record, if any, or  with  a  police  department
 report  with  respect  to  the  defendant's  prior arrest AND CONVICTION
 record, IF ANY.  If neither report is available,  the  court,  with  the
 consent  of  the  district attorney, may dispense with this requirement;
 provided, however, that in an emergency, including but not limited to  a
 substantial impairment in the ability of such division or police depart-
 ment  to  timely furnish such report, such consent shall not be required
 if, for reasons stated on the record, the court  deems  it  unnecessary.
 When  the  court  has  been furnished with any such report or record, it
 shall furnish a copy thereof to counsel for the  defendant  or,  if  the
 defendant is not represented by counsel, to the defendant.
   §  17.  The section heading and subdivisions 1 and 2 of section 530.30
 of the criminal procedure law, subdivision 2 as amended by  chapter  762
 of the laws of 1971, are amended to read as follows:
 Order of recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or bail; by
              superior court judge when action is pending in local crimi-
              nal court.
   1.  When a criminal action is pending in a local criminal court, other
 than one consisting of a superior court judge sitting as such,  a  judge
 of  a superior court holding a term thereof in the county, upon applica-
 tion of a defendant, may order recognizance, RELEASE UNDER  NON-MONETARY
 CONDITIONS or, WHERE AUTHORIZED, bail when such local criminal court:
   (a) Lacks authority to issue such an order, pursuant to [paragraph (a)
 of  subdivision  two]  THE RELEVANT PROVISIONS of section 530.20 OF THIS
 ARTICLE; or
   (b) Has denied an application for recognizance, RELEASE UNDER NON-MON-
 ETARY CONDITIONS or bail; or
   (c) Has fixed bail, WHERE AUTHORIZED, which is excessive; OR
   (D) HAS SET A SECURING ORDER OF RELEASE UNDER NON-MONETARY  CONDITIONS
 WHICH  ARE  MORE  RESTRICTIVE  THAN  NECESSARY  TO REASONABLY ASSURE THE
 DEFENDANT'S RETURN TO COURT.
   In such case, such superior court judge may vacate the order  of  such
 local criminal court and release the defendant on [his own] recognizance
 OR  UNDER  NON-MONETARY  CONDITIONS,  or WHERE AUTHORIZED, fix bail in a
 lesser amount or in a less burdensome  form,  WHICHEVER  ARE  THE  LEAST
 RESTRICTIVE  ALTERNATIVE  AND CONDITIONS THAT WILL REASONABLY ASSURE THE
 DEFENDANT'S RETURN TO COURT. THE  COURT  SHALL  EXPLAIN  ITS  CHOICE  OF
 ALTERNATIVE AND CONDITIONS ON THE RECORD OR IN WRITING.
   2.  Notwithstanding the provisions of subdivision one OF THIS SECTION,
 when the defendant is charged with a felony in a local criminal court, a
 superior court judge may not order recognizance, RELEASE UNDER NON-MONE-
 TARY CONDITIONS or, WHERE AUTHORIZED, bail unless and until the district
 attorney has had an opportunity to be heard in the matter and such judge
 [has] AND COUNSEL FOR THE DEFENDANT HAVE been furnished with a report as
 described  in  subparagraph  (ii) of paragraph (b) of subdivision two of
 section 530.20 OF THIS ARTICLE.
   § 18. Section 530.40 of the criminal procedure law, subdivision  3  as
 amended by chapter 264 of the laws of 2003, and subdivision 4 as amended
 by chapter 762 of the laws of 1971, is amended to read as follows:
 § 530.40 Order of recognizance, RELEASE UNDER NON-MONETARY CONDITIONS or
            bail; by superior court when action is pending therein.

 S. 1509--C                         124                        A. 2009--C
 
   When  a  criminal  action  is pending in a superior court, such court,
 upon application of a defendant, must or may order recognizance or  bail
 as follows:
   1.  When  the defendant is charged with an offense or offenses of less
 than felony grade only, the court must,  UNLESS  OTHERWISE  PROVIDED  BY
 LAW,  order recognizance or [bail] RELEASE UNDER NON-MONETARY CONDITIONS
 IN ACCORDANCE WITH THIS SECTION.
   2. When the defendant is charged with a felony, the court may,  UNLESS
 OTHERWISE  PROVIDED  BY  LAW in its discretion, order recognizance [or],
 RELEASE UNDER NON-MONETARY CONDITIONS OR, WHERE AUTHORIZED, bail. In any
 such case in which an indictment (a) has resulted from  an  order  of  a
 local  criminal  court holding the defendant for the action of the grand
 jury, or (b) was filed at a time when a felony  complaint  charging  the
 same  conduct  was  pending in a local criminal court, and in which such
 local criminal court or a superior court judge has issued  an  order  of
 recognizance  [or],  RELEASE  UNDER  NON-MONETARY  CONDITIONS  OR, WHERE
 AUTHORIZED, bail which is still effective, the  superior  court's  order
 may  be  in  the form of a direction continuing the effectiveness of the
 previous order.
   3. IN CASES OTHER THAN  AS  DESCRIBED  IN  SUBDIVISION  FOUR  OF  THIS
 SECTION THE COURT SHALL RELEASE THE PRINCIPAL PENDING TRIAL ON THE PRIN-
 CIPAL'S  OWN  RECOGNIZANCE,  UNLESS  THE COURT FINDS ON THE RECORD OR IN
 WRITING THAT RELEASE  ON  THE  PRINCIPAL'S  OWN  RECOGNIZANCE  WILL  NOT
 REASONABLY  ASSURE  THE  PRINCIPAL'S RETURN TO COURT. IN SUCH INSTANCES,
 THE COURT SHALL RELEASE THE  PRINCIPAL  UNDER  NON-MONETARY  CONDITIONS,
 SELECTING  THE  LEAST  RESTRICTIVE  ALTERNATIVE AND CONDITIONS THAT WILL
 REASONABLY ASSURE THE PRINCIPAL'S  RETURN  TO  COURT.  THE  COURT  SHALL
 EXPLAIN  ITS  CHOICE  OF  ALTERNATIVE AND CONDITIONS ON THE RECORD OR IN
 WRITING.
   4. WHERE THE PRINCIPAL STANDS CHARGED WITH A QUALIFYING  OFFENSE,  THE
 COURT, UNLESS OTHERWISE PROHIBITED BY LAW, MAY IN ITS DISCRETION RELEASE
 THE PRINCIPAL PENDING TRIAL ON THE PRINCIPAL'S OWN RECOGNIZANCE OR UNDER
 NON-MONETARY  CONDITIONS,  FIX  BAIL, OR, WHERE THE DEFENDANT IS CHARGED
 WITH A QUALIFYING OFFENSE WHICH IS A FELONY, THE COURT  MAY  COMMIT  THE
 PRINCIPAL  TO  THE  CUSTODY  OF THE SHERIFF. THE COURT SHALL EXPLAIN ITS
 CHOICE OF RELEASE, RELEASE WITH CONDITIONS, BAIL OR REMAND ON THE RECORD
 OR IN WRITING. A PRINCIPAL STANDS CHARGED WITH A QUALIFYING OFFENSE  FOR
 THE PURPOSES OF THIS SUBDIVISION WHEN HE OR SHE STANDS CHARGED WITH:
   (A)  A FELONY ENUMERATED IN SECTION 70.02 OF THE PENAL LAW, OTHER THAN
 BURGLARY IN THE SECOND DEGREE AS DEFINED IN SUBDIVISION TWO  OF  SECTION
 140.25  OF  THE  PENAL LAW OR ROBBERY IN THE SECOND DEGREE AS DEFINED IN
 SUBDIVISION ONE OF SECTION 160.10 OF THE PENAL LAW;
   (B) A CRIME INVOLVING WITNESS INTIMIDATION UNDER SECTION 215.15 OF THE
 PENAL LAW;
   (C) A CRIME INVOLVING WITNESS TAMPERING UNDER SECTION  215.11,  215.12
 OR 215.13 OF THE PENAL LAW;
   (D)  A  CLASS A FELONY DEFINED IN THE PENAL LAW, OTHER THAN IN ARTICLE
 TWO HUNDRED TWENTY OF SUCH LAW WITH THE EXCEPTION OF SECTION  220.77  OF
 SUCH LAW;
   (E)  A FELONY SEX OFFENSE DEFINED IN SECTION 70.80 OF THE PENAL LAW OR
 A CRIME INVOLVING INCEST AS DEFINED IN SECTION 255.25, 255.26 OR  255.27
 OF  SUCH  LAW, OR A MISDEMEANOR DEFINED IN ARTICLE ONE HUNDRED THIRTY OF
 SUCH LAW;
   (F) CONSPIRACY IN THE SECOND DEGREE AS DEFINED IN  SECTION  105.15  OF
 THE  PENAL  LAW,  WHERE THE UNDERLYING ALLEGATION OF SUCH CHARGE IS THAT

 S. 1509--C                         125                        A. 2009--C
 
 THE DEFENDANT CONSPIRED TO COMMIT A CLASS A FELONY  DEFINED  IN  ARTICLE
 ONE HUNDRED TWENTY-FIVE OF THE PENAL LAW;
   (G)  MONEY  LAUNDERING  IN SUPPORT OF TERRORISM IN THE FIRST DEGREE AS
 DEFINED IN SECTION 470.24 OF THE PENAL LAW; MONEY LAUNDERING IN  SUPPORT
 OF  TERRORISM  IN  THE SECOND DEGREE AS DEFINED IN SECTION 470.23 OF THE
 PENAL LAW; OR A FELONY CRIME OF TERRORISM AS  DEFINED  IN  ARTICLE  FOUR
 HUNDRED NINETY OF THE PENAL LAW, OTHER THAN THE CRIME DEFINED IN SECTION
 490.20 OF SUCH LAW;
   (H)  CRIMINAL  CONTEMPT IN THE SECOND DEGREE AS DEFINED IN SUBDIVISION
 THREE OF SECTION 215.50 OF THE PENAL LAW, CRIMINAL CONTEMPT IN THE FIRST
 DEGREE AS DEFINED IN SUBDIVISION (B), (C) OR (D) OF  SECTION  215.51  OF
 THE  PENAL  LAW  OR  AGGRAVATED  CRIMINAL CONTEMPT AS DEFINED IN SECTION
 215.52 OF THE PENAL LAW, AND THE UNDERLYING ALLEGATION OF SUCH CHARGE OF
 CRIMINAL CONTEMPT IN THE SECOND DEGREE, CRIMINAL CONTEMPT IN  THE  FIRST
 DEGREE  OR AGGRAVATED CRIMINAL CONTEMPT IS THAT THE DEFENDANT VIOLATED A
 DULY SERVED ORDER OF PROTECTION WHERE THE PROTECTED PARTY IS A MEMBER OF
 THE DEFENDANT'S SAME FAMILY OR HOUSEHOLD AS DEFINED IN  SUBDIVISION  ONE
 OF SECTION 530.11 OF THIS ARTICLE; OR
   (I)  FACILITATING  A  SEXUAL  PERFORMANCE BY A CHILD WITH A CONTROLLED
 SUBSTANCE OR ALCOHOL AS DEFINED IN SECTION 263.30 OF THE PENAL LAW,  USE
 OF  A  CHILD IN A SEXUAL PERFORMANCE AS DEFINED IN SECTION 263.05 OF THE
 PENAL LAW OR LURING A CHILD AS DEFINED IN  SUBDIVISION  ONE  OF  SECTION
 120.70 OF THE PENAL LAW.
   5.  NOTWITHSTANDING  THE  PROVISIONS OF SUBDIVISIONS THREE AND FOUR OF
 THIS SECTION, WITH RESPECT TO ANY CHARGE FOR WHICH BAIL OR REMAND IS NOT
 ORDERED, AND FOR WHICH THE  COURT  WOULD  NOT  OR  COULD  NOT  OTHERWISE
 REQUIRE  BAIL  OR REMAND, A DEFENDANT MAY, AT ANY TIME, REQUEST THAT THE
 COURT SET BAIL IN A NOMINAL AMOUNT REQUESTED BY  THE  DEFENDANT  IN  THE
 FORM  SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION 520.10 OF
 THIS TITLE; IF THE COURT IS SATISFIED THAT THE REQUEST IS VOLUNTARY, THE
 COURT SHALL SET SUCH BAIL IN SUCH AMOUNT.
   6. Notwithstanding the provisions of  [subdivision  two]  SUBDIVISIONS
 TWO,  THREE  AND  FOUR  OF  THIS SECTION, a superior court may not order
 recognizance, RELEASE UNDER NON-MONETARY CONDITIONS  or,  WHERE  AUTHOR-
 IZED,  bail,  or  permit a defendant to remain at liberty pursuant to an
 existing order, after [he] THE DEFENDANT has been convicted  of  either:
 (a)  a class A felony or (b) any class B or class C felony AS defined in
 article one hundred thirty of the penal law committed or attempted to be
 committed by a person eighteen years of age or older  against  a  person
 less than eighteen years of age. In either case the court must commit or
 remand the defendant to the custody of the sheriff.
   [4.]  7.  Notwithstanding the provisions of [subdivision two] SUBDIVI-
 SIONS TWO, THREE AND FOUR OF THIS SECTION,  a  superior  court  may  not
 order  recognizance,  RELEASE  UNDER  NON-MONETARY  CONDITIONS or, WHERE
 AUTHORIZED, bail when the defendant is charged with a felony unless  and
 until  the  district  attorney has had an opportunity to be heard in the
 matter and such court [has] AND COUNSEL  FOR  THE  DEFENDANT  HAVE  been
 furnished  with  a report as described in subparagraph (ii) of paragraph
 (b) of subdivision two of section 530.20 OF THIS ARTICLE.
   § 19. Subdivision 1 of section 530.45 of the criminal  procedure  law,
 as  amended  by  chapter  264 of the laws of 2003, is amended to read as
 follows:
   1. When the defendant is at liberty in the course of a criminal action
 as a result of a prior order of recognizance, RELEASE UNDER NON-MONETARY
 CONDITIONS or bail and the court revokes such order and  then  [either],
 WHERE  AUTHORIZED, fixes no bail or fixes bail in a greater amount or in

 S. 1509--C                         126                        A. 2009--C
 
 a more burdensome form than was previously fixed and remands or  commits
 defendant  to  the  custody of the sheriff, OR ISSUES A MORE RESTRICTIVE
 SECURING ORDER, a judge designated in subdivision two OF  THIS  SECTION,
 upon  application  of  the  defendant following conviction of an offense
 other than a class A felony or a class B or class C  felony  offense  AS
 defined  in  article  one  hundred  thirty of the penal law committed or
 attempted to be committed by a person eighteen years  of  age  or  older
 against a person less than eighteen years of age, and before sentencing,
 may  issue  a securing order and [either] release THE defendant on [his]
 THE DEFENDANT'S own recognizance, RELEASE THE DEFENDANT UNDER  NON-MONE-
 TARY  CONDITIONS,  or,  WHERE  AUTHORIZED,  fix bail[,] or fix bail in a
 lesser amount or in a less burdensome form, OR ISSUE A LESS  RESTRICTIVE
 SECURING  ORDER,  than  fixed  by  the court in which the conviction was
 entered.
   § 20. Section 530.60 of the criminal procedure law, subdivision  1  as
 amended  by  chapter  565 of the laws of 2011, subdivision 2 as added by
 chapter 788 of the laws of 1981 and paragraph (a) of  subdivision  2  as
 amended  by  chapter  794  of  the  laws  of 1986, is amended to read as
 follows:
 § 530.60 [Order of recognizance or  bail;  revocation  thereof]  CERTAIN
             MODIFICATIONS OF A SECURING ORDER.
   1. Whenever in the course of a criminal action or proceeding a defend-
 ant is at liberty as a result of an order of recognizance, RELEASE UNDER
 NON-MONETARY CONDITIONS or bail issued pursuant to this chapter, and the
 court considers it necessary to review such order, [it] WHETHER DUE TO A
 MOTION BY THE PEOPLE OR OTHERWISE, THE COURT may, and EXCEPT AS PROVIDED
 IN  SUBDIVISION TWO OF SECTION 510.50 OF THIS TITLE CONCERNING A FAILURE
 TO APPEAR IN COURT, by a bench warrant if necessary, require the defend-
 ant to appear before the court. Upon such  appearance,  the  court,  for
 good  cause  shown,  may revoke the order of recognizance, RELEASE UNDER
 NON-MONETARY CONDITIONS, or bail. If the defendant is entitled to recog-
 nizance, RELEASE UNDER NON-MONETARY CONDITIONS, or bail as a  matter  of
 right,  the  court  must  issue  another  such order. If [he or she] THE
 DEFENDANT is not, the court may either issue such an order or commit the
 defendant to the custody of the sheriff IN ACCORDANCE WITH THIS SECTION.
   Where the defendant is committed to the custody of the sheriff and  is
 held  on  a felony complaint, a new period as provided in section 180.80
 of this chapter shall commence to run from the time of  the  defendant's
 commitment under this subdivision.
   2.  (a)  Whenever  in  the course of a criminal action or proceeding a
 defendant charged with the commission of a felony is  at  liberty  as  a
 result  of  an  order of recognizance, RELEASE UNDER NON-MONETARY CONDI-
 TIONS or bail issued pursuant to this article it shall  be  grounds  for
 revoking such order that the court finds reasonable cause to believe the
 defendant  committed  one  or  more  specified class A or violent felony
 offenses or intimidated a victim or witness in violation  of  [sections]
 SECTION 215.15, 215.16 or 215.17 of the penal law while at liberty.
   (B)  EXCEPT  AS  PROVIDED  IN PARAGRAPH (A) OF THIS SUBDIVISION OR ANY
 OTHER LAW, WHENEVER IN THE COURSE OF A CRIMINAL ACTION OR  PROCEEDING  A
 DEFENDANT  CHARGED  WITH THE COMMISSION OF AN OFFENSE IS AT LIBERTY AS A
 RESULT OF AN ORDER OF RECOGNIZANCE, RELEASE  UNDER  NON-MONETARY  CONDI-
 TIONS  OR  BAIL  ISSUED PURSUANT TO THIS ARTICLE IT SHALL BE GROUNDS FOR
 REVOKING SUCH ORDER AND FIXING BAIL IN SUCH CRIMINAL ACTION OR  PROCEED-
 ING WHEN THE COURT HAS FOUND, BY CLEAR AND CONVINCING EVIDENCE, THAT THE
 DEFENDANT:

 S. 1509--C                         127                        A. 2009--C
 
   (I) PERSISTENTLY AND WILLFULLY FAILED TO APPEAR AFTER NOTICE OF SCHED-
 ULED APPEARANCES IN THE CASE BEFORE THE COURT; OR
   (II)  VIOLATED  AN  ORDER  OF  PROTECTION  IN THE MANNER PROHIBITED BY
 SUBDIVISION (B), (C) OR (D) OF SECTION 215.51 OF THE PENAL LAW WHILE  AT
 LIBERTY; OR
   (III)  STANDS  CHARGED  IN  SUCH  CRIMINAL ACTION OR PROCEEDING WITH A
 MISDEMEANOR OR VIOLATION AND, AFTER  BEING  SO  CHARGED,  INTIMIDATED  A
 VICTIM  OR  WITNESS  IN VIOLATION OF SECTION 215.15, 215.16 OR 215.17 OF
 THE PENAL LAW OR TAMPERED WITH A WITNESS IN VIOLATION OF SECTION 215.11,
 215.12 OR 215.13 OF THE PENAL LAW, LAW WHILE AT LIBERTY; OR
   (IV) STANDS CHARGED IN SUCH ACTION OR PROCEEDING WITH  A  FELONY  AND,
 AFTER BEING SO CHARGED, COMMITTED A FELONY WHILE AT LIBERTY.
   (C)  Before revoking an order of recognizance, RELEASE UNDER NON-MONE-
 TARY CONDITIONS, or bail pursuant to this subdivision,  the  court  must
 hold  a  hearing and shall receive any relevant, admissible evidence not
 legally privileged. The defendant may cross-examine  witnesses  and  may
 present  relevant,  admissible  evidence on his own behalf. Such hearing
 may be consolidated with, and conducted at the same time  as,  a  felony
 hearing  conducted  pursuant to article one hundred eighty of this chap-
 ter. A transcript of testimony taken before the grand jury upon  presen-
 tation  of the subsequent offense shall be admissible as evidence during
 the hearing.  The district attorney may move  to  introduce  grand  jury
 testimony  of a witness in lieu of that witness' appearance at the hear-
 ing.
   [(b)] (D) Revocation of an order of recognizance, RELEASE  UNDER  NON-
 MONETARY  CONDITIONS  or  bail  and  A NEW SECURING ORDER FIXING BAIL OR
 commitment, AS SPECIFIED IN THIS PARAGRAPH AND pursuant to this subdivi-
 sion shall be for the following periods[, either]:
   (I) UNDER PARAGRAPH (A) OF THIS SUBDIVISION, REVOCATION OF  THE  ORDER
 OF  RECOGNIZANCE,  RELEASE UNDER NON-MONETARY CONDITIONS OR, AS THE CASE
 MAY BE, BAIL, AND A NEW SECURING ORDER FIXING  BAIL  OR  COMMITTING  THE
 DEFENDANT TO THE CUSTODY OF THE SHERIFF SHALL BE AS FOLLOWS:
   [(i)]  (A)  For  a  period  not to exceed ninety days exclusive of any
 periods of adjournment requested by the defendant; or
   [(ii)] (B) Until the charges contained within the  accusatory  instru-
 ment  have  been  reduced  or dismissed such that no count remains which
 charges the defendant with commission of a felony; or
   [(iii)] (C) Until reduction or  dismissal  of  the  charges  contained
 within  the  accusatory  instrument charging the subsequent offense such
 that no count remains which charges the defendant with commission  of  a
 class A or violent felony offense.
   Upon  expiration  of  any  of  the three periods specified within this
 [paragraph] SUBPARAGRAPH, whichever is shortest, the court may grant  or
 deny  release  upon  an order of bail or recognizance in accordance with
 the provisions of this  article.  Upon  conviction  to  an  offense  the
 provisions  of  article  five  hundred  thirty  of  this  chapter  shall
 apply[.]; AND
   [(c)] (II) UNDER PARAGRAPH (B) OF THIS SUBDIVISION, REVOCATION OF  THE
 ORDER  OF RECOGNIZANCE, RELEASE UNDER NON-MONETARY CONDITIONS OR, AS THE
 CASE MAY BE, BAIL SHALL RESULT IN THE ISSUANCE OF A NEW  SECURING  ORDER
 WHICH  MAY,  IF  OTHERWISE  AUTHORIZED  BY  LAW,  PERMIT THE PRINCIPAL'S
 RELEASE ON RECOGNIZANCE OR RELEASE UNDER  NON-MONETARY  CONDITIONS,  BUT
 SHALL  ALSO  RENDER  THE  DEFENDANT  ELIGIBLE  FOR  AN ORDER FIXING BAIL
 PROVIDED, HOWEVER, THAT IN ACCORDANCE WITH THE PRINCIPLES IN THIS  TITLE
 THE COURT MUST SELECT THE LEAST RESTRICTIVE ALTERNATIVE AND CONDITION OR
 CONDITIONS  THAT WILL REASONABLY ASSURE THE PRINCIPAL'S RETURN TO COURT.

 S. 1509--C                         128                        A. 2009--C

 NOTHING IN THIS SUBPARAGRAPH SHALL  BE  INTERPRETED  AS  SHORTENING  THE
 PERIOD  OF  DETENTION,  OR REQUIRING OR AUTHORIZING ANY LESS RESTRICTIVE
 FORM OF A SECURING ORDER, WHICH MAY BE IMPOSED  PURSUANT  TO  ANY  OTHER
 LAW.
   (E)  Notwithstanding  the  provisions  of paragraph (a) OR (B) of this
 subdivision a defendant, against whom a felony complaint has been  filed
 which  charges  the  defendant  with  commission of a class A or violent
 felony offense OR VIOLATION OF SECTION 215.15, 215.16 OR 215.17  OF  THE
 PENAL LAW committed while he was at liberty as specified therein, may be
 committed to the custody of the sheriff pending a revocation hearing for
 a  period  not  to exceed seventy-two hours. An additional period not to
 exceed seventy-two hours may be granted by the court upon application of
 the district attorney upon a showing of good cause or where the  failure
 to  commence  the hearing was due to the defendant's request or occurred
 with his consent. Such good cause must consist of some  compelling  fact
 or  circumstance  which  precluded  conducting  the  hearing  within the
 initial prescribed period.
   § 21. Paragraph (a) of subdivision 9 of section 216.05 of the criminal
 procedure law, as amended by chapter 258 of the laws of 2015, is amended
 to read as follows:
   (a) If at any time during the defendant's participation in  the  judi-
 cial diversion program, the court has reasonable grounds to believe that
 the  defendant  has violated a release condition IN AN IMPORTANT RESPECT
 or has WILLFULLY failed to appear before the  court  as  requested,  the
 court  EXCEPT  AS  PROVIDED IN SUBDIVISION TWO OF SECTION 510.50 OF THIS
 CHAPTER REGARDING A FAILURE TO APPEAR, shall  direct  the  defendant  to
 appear  or  issue  a bench warrant to a police officer or an appropriate
 peace officer directing him or her to take the  defendant  into  custody
 and  bring  the  defendant  before  the court without unnecessary delay;
 provided, however, that under no circumstances  shall  a  defendant  who
 requires  treatment  for  opioid  abuse  or dependence be deemed to have
 violated a release condition on the basis of his or her participation in
 medically prescribed drug treatments under the care  of  a  health  care
 professional  licensed  or  certified under title eight of the education
 law, acting within his or her lawful scope of practice.    The  RELEVANT
 provisions of [subdivision one of] section 530.60 of this chapter relat-
 ing  to [revocation of recognizance or bail] ISSUANCE OF SECURING ORDERS
 shall apply to such proceedings under this subdivision.
   § 22. The opening paragraph of section 240.44 of the  criminal  proce-
 dure  law,  as  added  by chapter 558 of the laws of 1982, is amended to
 read as follows:
   Subject to a  protective order, at a pre-trial hearing held in a crim-
 inal court at which a witness is called to testify, each party, [at  the
 conclusion]  PRIOR TO THE COMMENCEMENT of the direct examination of each
 of its witnesses, shall, upon request of the other party, make available
 to that party to the extent not previously disclosed:
   § 23. Section 410.60 of the criminal  procedure  law,  as  amended  by
 chapter 652 of the laws of 2008, is amended to read as follows:
 § 410.60 Appearance before court.
   A person who has been taken into custody pursuant to section 410.40 or
 section  410.50  of  this  article  for  violation  of  a condition of a
 sentence of probation or a sentence of conditional discharge must forth-
 with be brought before the court that  imposed  the  sentence.  Where  a
 violation of probation petition and report has been filed and the person
 has  not  been  taken  into  custody  nor  has a warrant been issued, an
 initial court appearance shall occur within ten  business  days  of  the

 S. 1509--C                         129                        A. 2009--C
 
 court's  issuance  of  a  notice  to appear. If the court has reasonable
 cause to believe that such  person  has  violated  a  condition  of  the
 sentence,  it may commit [him] SUCH PERSON to the custody of the sheriff
 [or],  fix  bail,  RELEASE  SUCH PERSON UNDER NON-MONETARY CONDITIONS or
 release such person on [his] SUCH PERSON'S own recognizance  for  future
 appearance  at a hearing to be held in accordance with section 410.70 of
 this article. If the court does not have  reasonable  cause  to  believe
 that  such  person  has  violated  a  condition of the sentence, it must
 direct that [he] SUCH PERSON be released.
   § 24. Subdivision 3 of section 620.50 of the criminal procedure law is
 amended to read as follows:
   3. A material witness order must be executed as follows:
   (a)  If the bail is posted and approved  by  the  court,  the  witness
 must,  as  provided in subdivision [three] TWO of section 510.40 OF THIS
 PART, be released and be permitted to remain at liberty; provided  that,
 where  the bail is posted by a person other than the witness himself, he
 may not be so released except upon his signed written consent thereto;
   (b)  If the bail is not posted, or if though posted it is not approved
 by the court, the witness must, as provided in subdivision  [three]  TWO
 of section 510.40 OF THIS PART, be committed to the custody of the sher-
 iff.
   § 25. This act shall take effect on January 1, 2020.
 
                                 PART KKK
 
   Section  1.   Section 30.30 of the criminal procedure law, as added by
 chapter 184 of the laws of 1972,  paragraph  (a)  of  subdivision  3  as
 amended  by chapter 93 of the laws of 2006, paragraph (a) of subdivision
 4 as amended by chapter 558 of the laws of 1982, paragraph (c) of subdi-
 vision 4 as amended by chapter 631 of the laws of 1996, paragraph (h) of
 subdivision 4 as added by chapter 837 of the laws of 1986, paragraph (i)
 of subdivision 4 as added by chapter 446 of the laws of 1993,  paragraph
 (j)  of subdivision 4 as added by chapter 222 of the laws of 1994, para-
 graph (b) of subdivision 5 as amended by chapter  109  of  the  laws  of
 1982, paragraphs (e) and (f) of subdivision 5 as added by chapter 209 of
 the laws of 1990, is amended to read as follows:
 § 30.30 Speedy trial; time limitations.
   1.  Except as otherwise provided in subdivision three OF THIS SECTION,
 a motion made pursuant to paragraph (e) of subdivision  one  of  section
 170.30  or  paragraph  (g)  of subdivision one of section 210.20 OF THIS
 CHAPTER must be granted where the people are not ready for trial within:
   (a) six months of the commencement of  a  criminal  action  wherein  a
 defendant is accused of one or more offenses, at least one of which is a
 felony;
   (b)  ninety  days  of  the commencement of a criminal action wherein a
 defendant is accused of one or more offenses, at least one of which is a
 misdemeanor punishable by a sentence of imprisonment of more than  three
 months and none of which is a felony;
   (c)  sixty  days  of the commencement of a criminal action wherein the
 defendant is accused of one or more offenses, at least one of which is a
 misdemeanor punishable by a sentence of imprisonment of  not  more  than
 three  months  and  none of which is a crime punishable by a sentence of
 imprisonment of more than three months; OR
   (d) thirty days of the commencement of a criminal action  wherein  the
 defendant is accused of one or more offenses, at least one of which is a
 violation and none of which is a crime.

 S. 1509--C                         130                        A. 2009--C
 
   (E)  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION, THE TERM OFFENSE SHALL
 INCLUDE VEHICLE AND TRAFFIC LAW INFRACTIONS.
   2.  Except  as  provided in subdivision three OF THIS SECTION, where a
 defendant has been committed to the custody of the sheriff OR THE OFFICE
 OF CHILDREN AND FAMILY SERVICES in a criminal action he OR SHE  must  be
 released on bail or on his OR HER own recognizance, upon such conditions
 as  may be just and reasonable, if the people are not ready for trial in
 that criminal action within:
   (a) ninety days from the commencement of his OR HER commitment to  the
 custody  of the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES in
 a criminal action wherein the  defendant  is  accused  of  one  or  more
 offenses, at least one of which is a felony;
   (b)  thirty days from the commencement of his OR HER commitment to the
 custody of the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES  in
 a  criminal  action  wherein  the  defendant  is  accused of one or more
 offenses, at least one  of  which  is  a  misdemeanor  punishable  by  a
 sentence  of imprisonment of more than three months and none of which is
 a felony;
   (c) fifteen days from the commencement of his OR HER commitment to the
 custody of the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES  in
 a  criminal  action  wherein  the  defendant  is  accused of one or more
 offenses, at least one  of  which  is  a  misdemeanor  punishable  by  a
 sentence of imprisonment of not more than three months and none of which
 is  a  crime punishable by a sentence of imprisonment of more than three
 months; OR
   (d) five days from the commencement of his OR HER  commitment  to  the
 custody  of the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES in
 a criminal action wherein the  defendant  is  accused  of  one  or  more
 offenses,  at  least  one of which is a violation and none of which is a
 crime.
   (E) FOR THE PURPOSES OF  THIS  SUBDIVISION,  THE  TERM  OFFENSE  SHALL
 INCLUDE VEHICLE AND TRAFFIC LAW INFRACTIONS.
   3.  (a)  Subdivisions  one  and  two OF THIS SECTION do not apply to a
 criminal action wherein the defendant is accused of an  offense  defined
 in  sections  125.10,  125.15,  125.20, 125.25, 125.26 and 125.27 of the
 penal law.
   (b) A motion made pursuant to subdivisions one or two OF THIS  SECTION
 upon  expiration  of the specified period may be denied where the people
 are not ready for trial if the people were ready for trial prior to  the
 expiration  of the specified period and their present unreadiness is due
 to some exceptional fact or circumstance, including, but not limited to,
 the sudden unavailability of evidence material  to  the  people's  case,
 when  the  district  attorney has exercised due diligence to obtain such
 evidence and there are reasonable grounds to believe that such  evidence
 will become available in a reasonable period.
   (c)  A  motion  made pursuant to subdivision two OF THIS SECTION shall
 not:
   (i) apply to any defendant who is serving a term of  imprisonment  for
 another offense;
   (ii)  require  the  release  from custody of any defendant who is also
 being held in custody pending trial of another  criminal  charge  as  to
 which the applicable period has not yet elapsed;
   (iii)  prevent  the redetention of or otherwise apply to any defendant
 who, after being released from  custody  pursuant  to  this  section  or
 otherwise,  is  charged with another crime or violates the conditions on

 S. 1509--C                         131                        A. 2009--C
 
 which he has been released, by failing to appear at a judicial  proceed-
 ing at which his presence is required or otherwise.
   4.  In  computing  the  time within which the people must be ready for
 trial pursuant to subdivisions one and two OF THIS SECTION, the  follow-
 ing periods must be excluded:
   (a)  a  reasonable  period  of  delay resulting from other proceedings
 concerning the defendant, including but not limited to: proceedings  for
 the determination of competency and the period during which defendant is
 incompetent  to  stand  trial;  demand to produce; request for a bill of
 particulars; pre-trial motions; appeals; trial of other charges; and the
 period during which such matters are under consideration by  the  court;
 or
   (b)  the  period  of delay resulting from a continuance granted by the
 court at the request of, or with the consent of, the defendant or his OR
 HER counsel. The court [must] MAY grant such a continuance only if it is
 satisfied that postponement is in the interest of justice,  taking  into
 account  the  public  interest  in  the  prompt dispositions of criminal
 charges. A  defendant  without  counsel  must  not  be  deemed  to  have
 consented  to  a  continuance  unless  he OR SHE has been advised by the
 court of his OR HER rights under these  rules  and  the  effect  of  his
 consent, WHICH MUST BE DONE ON THE RECORD IN OPEN COURT; or
   (c) (i) the period of delay resulting from the absence or unavailabil-
 ity of the defendant. A defendant must be considered absent whenever his
 location is unknown and he is attempting to avoid apprehension or prose-
 cution, or his location cannot be determined by due diligence. A defend-
 ant  must  be  considered unavailable whenever his location is known but
 his presence for trial cannot be obtained by due diligence; or
   (ii) where the defendant has either escaped from custody or has failed
 to appear when required after having previously been released on bail or
 on his own recognizance, and provided the defendant is not in custody on
 another matter, the period extending from the day  the  court  issues  a
 bench  warrant pursuant to section 530.70 OF THIS CHAPTER because of the
 defendant's failure to appear in court when required,  to  the  day  the
 defendant  subsequently appears in the court pursuant to a bench warrant
 or voluntarily or otherwise; or
   (d) a reasonable period of delay when  the  defendant  is  joined  for
 trial with a co-defendant as to whom the time for trial pursuant to this
 section  has  not  run and good cause is not shown for granting a sever-
 ance; or
   (e) the period of delay resulting from detention of the  defendant  in
 another  jurisdiction  provided  the  district attorney is aware of such
 detention and has been diligent  and  has  made  reasonable  efforts  to
 obtain the presence of the defendant for trial; or
   (f)  the  period during which the defendant is without counsel through
 no fault of the court; except when the defendant is  proceeding  as  his
 own attorney with the permission of the court; or
   (g)  other  periods  of delay occasioned by exceptional circumstances,
 including but not limited to, the  period  of  delay  resulting  from  a
 continuance  granted  at  the  request of a district attorney if (i) the
 continuance is granted because of the unavailability of evidence materi-
 al to the people's case, when the district attorney  has  exercised  due
 diligence  to  obtain  such evidence and there are reasonable grounds to
 believe that such evidence will become available in a reasonable period;
 or (ii) the continuance is granted to allow the district attorney  addi-
 tional  time  to prepare the people's case and additional time is justi-
 fied by the exceptional circumstances of the case.   ANY SUCH  EXCLUSION

 S. 1509--C                         132                        A. 2009--C
 
 WHEN  A  STATEMENT  OF UNREADINESS HAS FOLLOWED A STATEMENT OF READINESS
 MADE BY THE PEOPLE MUST BE EVALUATED BY THE COURT AFTER INQUIRY  ON  THE
 RECORD  AS TO THE REASONS FOR THE PEOPLE'S UNREADINESS AND SHALL ONLY BE
 APPROVED UPON A SHOWING OF SUFFICIENT SUPPORTING FACTS; OR
   (h)  the  period  during which an action has been adjourned in contem-
 plation of dismissal pursuant to sections 170.55, 170.56 and  215.10  of
 this chapter[.]; OR
   (i)  [The]  THE  period prior to the defendant's actual appearance for
 arraignment in a situation in which the defendant has been  directed  to
 appear by the district attorney pursuant to subdivision three of section
 120.20 or subdivision three of section 210.10[.] OF THIS CHAPTER; OR
   (j)  the period during which a family offense is before a family court
 until such time as an  accusatory  instrument  or  indictment  is  filed
 against the defendant alleging a crime constituting a family offense, as
 such term is defined in section 530.11 of this chapter.
   5.  WHENEVER PURSUANT TO THIS SECTION A PROSECUTOR STATES OR OTHERWISE
 PROVIDES NOTICE THAT THE PEOPLE ARE READY FOR  TRIAL,  THE  COURT  SHALL
 MAKE  INQUIRY  ON  THE  RECORD  AS  TO THEIR ACTUAL READINESS. IF, AFTER
 CONDUCTING ITS INQUIRY, THE COURT DETERMINES THAT  THE  PEOPLE  ARE  NOT
 READY TO PROCEED TO TRIAL, THE PROSECUTOR'S STATEMENT OR NOTICE OF READ-
 INESS SHALL NOT BE VALID FOR PURPOSES OF THIS SECTION.  ANY STATEMENT OF
 TRIAL  READINESS  MUST  BE ACCOMPANIED OR PRECEDED BY A CERTIFICATION OF
 GOOD FAITH COMPLIANCE WITH THE DISCLOSURE REQUIREMENTS OF SECTION 245.20
 OF THIS CHAPTER AND THE DEFENSE SHALL BE AFFORDED AN OPPORTUNITY  TO  BE
 HEARD  ON THE RECORD AS TO WHETHER THE DISCLOSURE REQUIREMENTS HAVE BEEN
 MET. THIS SUBDIVISION SHALL NOT APPLY TO CASES  WHERE  THE  DEFENSE  HAS
 WAIVED DISCLOSURE REQUIREMENTS.
   5-A. UPON A LOCAL CRIMINAL COURT ACCUSATORY INSTRUMENT, A STATEMENT OF
 READINESS  SHALL  NOT BE VALID UNLESS THE PROSECUTING ATTORNEY CERTIFIES
 THAT ALL COUNTS CHARGED IN THE ACCUSATORY INSTRUMENT MEET  THE  REQUIRE-
 MENTS OF SECTIONS 100.15 AND 100.40 OF THIS CHAPTER AND THOSE COUNTS NOT
 MEETING  THE  REQUIREMENTS OF SECTIONS 100.15 AND 100.40 OF THIS CHAPTER
 HAVE BEEN DISMISSED.
   6. AN ORDER FINALLY DENYING A MOTION TO DISMISS PURSUANT  TO  SUBDIVI-
 SION  ONE  OF  THIS  SECTION  SHALL BE REVIEWABLE UPON AN APPEAL FROM AN
 ENSUING JUDGMENT OF CONVICTION NOTWITHSTANDING THE FACT THAT SUCH  JUDG-
 MENT IS ENTERED UPON A PLEA OF GUILTY.
   7.  For  purposes  of  this  section, (a) where the defendant is to be
 tried following the withdrawal of the plea of guilty or is to be retried
 following a mistrial, an order for a new trial or an appeal  or  collat-
 eral  attack,  the  criminal action and the commitment to the custody of
 the sheriff OR THE OFFICE OF CHILDREN AND FAMILY SERVICES, if any,  must
 be  deemed  to  have commenced on the date the withdrawal of the plea of
 guilty or the date the order occasioning a retrial becomes final;
   (b) where a defendant has been served with an appearance  ticket,  the
 criminal action must be deemed to have commenced on the date the defend-
 ant first appears in a local criminal court in response to the ticket;
   (c)  where  a  criminal  action is commenced by the filing of a felony
 complaint, and thereafter, in the course of  the  same  criminal  action
 either the felony complaint is replaced with or converted to an informa-
 tion,  prosecutor's  information  or  misdemeanor  complaint pursuant to
 article [180] ONE HUNDRED EIGHTY  OF  THIS  CHAPTER  or  a  prosecutor's
 information  is  filed  pursuant  to section 190.70 OF THIS CHAPTER, the
 period applicable for the purposes of subdivision one must be the period
 applicable to the charges in the new accusatory  instrument,  calculated
 from the date of the filing of such new accusatory instrument; provided,

 S. 1509--C                         133                        A. 2009--C
 
 however,  that when the aggregate of such period and the period of time,
 excluding the periods provided in subdivision four, already elapsed from
 the date of the filing of the felony complaint to the date of the filing
 of the new accusatory instrument exceeds six months, the period applica-
 ble  to  the  charges in the felony complaint must remain applicable and
 continue as if the new accusatory instrument had not been filed;
   (d) where a criminal action is commenced by the  filing  of  a  felony
 complaint,  and  thereafter,  in  the course of the same criminal action
 either the felony complaint is replaced with or converted to an informa-
 tion, prosecutor's information  or  misdemeanor  complaint  pursuant  to
 article  [180]  ONE  HUNDRED  EIGHTY  OF  THIS CHAPTER or a prosecutor's
 information is filed pursuant to section 190.70  OF  THIS  CHAPTER,  the
 period  applicable  for  the purposes of subdivision two OF THIS SECTION
 must be the period applicable to  the  charges  in  the  new  accusatory
 instrument, calculated from the date of the filing of such new accusato-
 ry instrument; provided, however, that when the aggregate of such period
 and  the  period  of time, excluding the periods provided in subdivision
 four OF THIS SECTION, already elapsed from the date of the filing of the
 felony complaint to the date of the filing of the new accusatory instru-
 ment exceeds ninety days, the period applicable to the  charges  in  the
 felony complaint must remain applicable and continue as if the new accu-
 satory instrument had not been filed.
   (e)  where a count of an indictment is reduced to charge only a misde-
 meanor or petty offense and  a  reduced  indictment  or  a  prosecutor's
 information  is  filed pursuant to subdivisions one-a and six of section
 210.20 OF THIS CHAPTER, the period applicable for the purposes of subdi-
 vision one of this section must be the period applicable to the  charges
 in the new accusatory instrument, calculated from the date of the filing
 of  such  new  accusatory  instrument;  provided, however, that when the
 aggregate of such period and the period of time, excluding  the  periods
 provided  in  subdivision four of this section, already elapsed from the
 date of the filing of the indictment to the date of the  filing  of  the
 new  accusatory  instrument exceeds six months, the period applicable to
 the charges in the indictment must remain applicable and continue as  if
 the new accusatory instrument had not been filed;
   (f)  where a count of an indictment is reduced to charge only a misde-
 meanor or petty offense and  a  reduced  indictment  or  a  prosecutor's
 information  is  filed pursuant to subdivisions one-a and six of section
 210.20 OF THIS CHAPTER, the period applicable for the purposes of subdi-
 vision two of this section must be the period applicable to the  charges
 in the new accusatory instrument, calculated from the date of the filing
 of  such  new  accusatory  instrument;  provided, however, that when the
 aggregate of such period and the period of time, excluding  the  periods
 provided  in  subdivision four of this section, already elapsed from the
 date of the filing of the indictment to the date of the  filing  of  the
 new  accusatory instrument exceeds ninety days, the period applicable to
 the charges in the indictment must remain applicable and continue as  if
 the new accusatory instrument had not been filed.
   [6.]  8.  The  procedural rules prescribed in subdivisions one through
 seven of section 210.45 OF THIS CHAPTER with  respect  to  a  motion  to
 dismiss  an indictment are [also] NOT applicable to a motion made pursu-
 ant to subdivision two OF THIS SECTION.  IF, UPON ORAL ARGUMENT, A  TIME
 PERIOD IS IN DISPUTE, THE COURT MUST PROMPTLY CONDUCT A HEARING IN WHICH
 THE PEOPLE MUST PROVE THAT THE TIME PERIOD IS EXCLUDABLE.
   § 2. This act shall take effect January 1, 2020.

 S. 1509--C                         134                        A. 2009--C
 
                                 PART LLL
 
   Section 1. Article 240 of the criminal procedure law is REPEALED.
   § 2. The criminal procedure law is amended by adding a new article 245
 to read as follows:
                                ARTICLE 245
                                 DISCOVERY
 SECTION 245.10 TIMING OF DISCOVERY.
         245.20 AUTOMATIC DISCOVERY.
         245.25 DISCLOSURE PRIOR TO CERTAIN GUILTY PLEAS.
         245.30 COURT ORDERS FOR PRESERVATION, ACCESS OR DISCOVERY.
         245.35 COURT ORDERED PROCEDURES TO FACILITATE COMPLIANCE.
         245.40 NON-TESTIMONIAL EVIDENCE FROM THE DEFENDANT.
         245.45 DNA COMPARISON ORDER.
         245.50 CERTIFICATES OF COMPLIANCE; READINESS FOR TRIAL.
         245.55 FLOW OF INFORMATION.
         245.60 CONTINUING DUTY TO DISCLOSE.
         245.65 WORK PRODUCT.
         245.70 PROTECTIVE ORDERS.
         245.75 WAIVER OF DISCOVERY BY DEFENDANT.
         245.80 REMEDIES OR SANCTIONS FOR NON-COMPLIANCE.
         245.85 ADMISSIBILITY OF DISCOVERY.
 § 245.10 TIMING OF DISCOVERY.
   1. (A) THE PROSECUTION SHALL PERFORM ITS INITIAL DISCOVERY OBLIGATIONS
 UNDER SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE AS SOON AS PRAC-
 TICABLE  BUT  NOT LATER THAN FIFTEEN CALENDAR DAYS AFTER THE DEFENDANT'S
 ARRAIGNMENT ON AN INDICTMENT, SUPERIOR COURT  INFORMATION,  PROSECUTOR'S
 INFORMATION,  INFORMATION, SIMPLIFIED INFORMATION, MISDEMEANOR COMPLAINT
 OR FELONY COMPLAINT. PORTIONS OF MATERIALS CLAIMED TO BE  NON-DISCOVERA-
 BLE  MAY  BE  WITHHELD  PENDING  A DETERMINATION AND RULING OF THE COURT
 UNDER SECTION 245.70 OF THIS ARTICLE; BUT THE DEFENDANT SHALL  BE  NOTI-
 FIED  IN WRITING THAT INFORMATION HAS NOT BEEN DISCLOSED UNDER A PARTIC-
 ULAR SUBDIVISION OF SUCH SECTION, AND THE DISCOVERABLE PORTIONS OF  SUCH
 MATERIALS  SHALL  BE  DISCLOSED  TO  THE  EXTENT PRACTICABLE.   WHEN THE
 DISCOVERABLE MATERIALS ARE EXCEPTIONALLY VOLUMINOUS  OR,  DESPITE  DILI-
 GENT,  GOOD FAITH EFFORTS, ARE OTHERWISE NOT IN THE ACTUAL POSSESSION OF
 THE PROSECUTION, THE TIME PERIOD IN THIS PARAGRAPH MAY BE STAYED  BY  UP
 TO AN ADDITIONAL THIRTY CALENDAR DAYS WITHOUT NEED FOR A MOTION PURSUANT
 TO SUBDIVISION TWO OF SECTION 245.70 OF THIS ARTICLE.
   (B)  THE  PROSECUTION  SHALL  PERFORM ITS SUPPLEMENTAL DISCOVERY OBLI-
 GATIONS UNDER SUBDIVISION THREE OF SECTION 245.20  OF  THIS  ARTICLE  AS
 SOON  AS  PRACTICABLE  BUT NOT LATER THAN FIFTEEN CALENDAR DAYS PRIOR TO
 THE FIRST SCHEDULED TRIAL DATE.
   (C) THE PROSECUTION SHALL DISCLOSE  STATEMENTS  OF  THE  DEFENDANT  AS
 DESCRIBED  IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION 245.20 OF THIS
 ARTICLE TO ANY DEFENDANT WHO HAS BEEN  ARRAIGNED  IN  A  LOCAL  CRIMINAL
 COURT  UPON  A  CURRENTLY  UNDISPOSED  OF  FELONY  COMPLAINT CHARGING AN
 OFFENSE WHICH IS A SUBJECT  OF  A  PROSPECTIVE  OR  PENDING  GRAND  JURY
 PROCEEDING,  NO  LATER  THAN FORTY-EIGHT HOURS BEFORE THE TIME SCHEDULED
 FOR THE DEFENDANT TO TESTIFY AT A  GRAND  JURY  PROCEEDING  PURSUANT  TO
 SUBDIVISION FIVE OF SECTION 190.50 OF THIS PART.
   2. DEFENDANT'S PERFORMANCE OF OBLIGATIONS. THE DEFENDANT SHALL PERFORM
 HIS  OR  HER  DISCOVERY  OBLIGATIONS  UNDER  SUBDIVISION FOUR OF SECTION
 245.20 OF THIS ARTICLE NOT LATER THAN THIRTY CALENDAR DAYS  AFTER  BEING
 SERVED  WITH  THE  PROSECUTION'S  CERTIFICATE  OF COMPLIANCE PURSUANT TO
 SUBDIVISION ONE OF SECTION 245.50 OF THIS ARTICLE, EXCEPT THAT  PORTIONS

 S. 1509--C                         135                        A. 2009--C
 
 OF  MATERIALS  CLAIMED  TO BE NON-DISCOVERABLE MAY BE WITHHELD PENDING A
 DETERMINATION AND RULING OF THE COURT UNDER SECTION 245.70 OF THIS ARTI-
 CLE; BUT THE PROSECUTION MUST BE NOTIFIED IN  WRITING  THAT  INFORMATION
 HAS NOT BEEN DISCLOSED UNDER A PARTICULAR SECTION.
 § 245.20 AUTOMATIC DISCOVERY.
   1. INITIAL DISCOVERY FOR THE DEFENDANT. THE PROSECUTION SHALL DISCLOSE
 TO  THE  DEFENDANT, AND PERMIT THE DEFENDANT TO DISCOVER, INSPECT, COPY,
 PHOTOGRAPH AND TEST, ALL  ITEMS  AND  INFORMATION  THAT  RELATE  TO  THE
 SUBJECT MATTER OF THE CASE AND ARE IN THE POSSESSION, CUSTODY OR CONTROL
 OF  THE  PROSECUTION  OR  PERSONS  UNDER  THE PROSECUTION'S DIRECTION OR
 CONTROL, INCLUDING BUT NOT LIMITED TO:
   (A) ALL WRITTEN OR RECORDED STATEMENTS, AND THE SUBSTANCE OF ALL  ORAL
 STATEMENTS,  MADE BY THE DEFENDANT OR A CO-DEFENDANT TO A PUBLIC SERVANT
 ENGAGED IN LAW ENFORCEMENT ACTIVITY OR TO A PERSON THEN ACTING UNDER HIS
 OR HER DIRECTION OR IN COOPERATION WITH HIM OR HER.
   (B) ALL TRANSCRIPTS OF THE TESTIMONY OF A  PERSON  WHO  HAS  TESTIFIED
 BEFORE  A  GRAND  JURY,  INCLUDING BUT NOT LIMITED TO THE DEFENDANT OR A
 CO-DEFENDANT. IF IN THE EXERCISE OF REASONABLE DILIGENCE, AND DUE TO THE
 LIMITED  AVAILABILITY  OF  TRANSCRIPTION  RESOURCES,  A  TRANSCRIPT   IS
 UNAVAILABLE  FOR DISCLOSURE WITHIN THE TIME PERIOD SPECIFIED IN SUBDIVI-
 SION ONE OF SECTION 245.10 OF THIS ARTICLE,  SUCH  TIME  PERIOD  MAY  BE
 STAYED  BY  UP  TO AN ADDITIONAL THIRTY CALENDAR DAYS WITHOUT NEED FOR A
 MOTION PURSUANT TO SUBDIVISION TWO OF SECTION 245.70  OF  THIS  ARTICLE;
 EXCEPT THAT SUCH DISCLOSURE SHALL BE MADE AS SOON AS PRACTICABLE AND NOT
 LATER  THAN  THIRTY CALENDAR DAYS BEFORE THE FIRST SCHEDULED TRIAL DATE,
 UNLESS AN ORDER IS OBTAINED PURSUANT TO SECTION 245.70 OF THIS  ARTICLE.
 WHEN THE COURT IS  REQUIRED TO REVIEW GRAND JURY TRANSCRIPTS, THE PROSE-
 CUTION  SHALL  DISCLOSE SUCH TRANSCRIPTS TO THE COURT EXPEDITIOUSLY UPON
 RECEIPT BY THE PROSECUTOR, NOTWITHSTANDING THE OTHERWISE-APPLICABLE TIME
 PERIODS FOR DISCLOSURE IN THIS ARTICLE.
   (C) THE NAMES AND ADEQUATE CONTACT INFORMATION FOR ALL  PERSONS  OTHER
 THAN  LAW  ENFORCEMENT  PERSONNEL  WHOM  THE  PROSECUTOR  KNOWS  TO HAVE
 EVIDENCE OR INFORMATION RELEVANT TO ANY OFFENSE CHARGED OR TO ANY POTEN-
 TIAL DEFENSE THERETO, INCLUDING A DESIGNATION BY THE  PROSECUTOR  AS  TO
 WHICH OF THOSE PERSONS MAY BE CALLED AS WITNESSES. NOTHING IN THIS PARA-
 GRAPH  SHALL  REQUIRE  THE  DISCLOSURE  OF PHYSICAL ADDRESSES; PROVIDED,
 HOWEVER, UPON A MOTION AND GOOD CAUSE SHOWN THE  COURT  MAY  DIRECT  THE
 DISCLOSURE  OF  A  PHYSICAL  ADDRESS. INFORMATION UNDER THIS SUBDIVISION
 RELATING TO A CONFIDENTIAL INFORMANT MAY BE WITHHELD, AND REDACTED  FROM
 DISCOVERY  MATERIALS,  WITHOUT  NEED  FOR  A  MOTION PURSUANT TO SECTION
 245.70 OF THIS ARTICLE; BUT THE PROSECUTION SHALL NOTIFY  THE  DEFENDANT
 IN  WRITING  THAT  SUCH  INFORMATION  HAS NOT BEEN DISCLOSED, UNLESS THE
 COURT RULES OTHERWISE FOR GOOD CAUSE SHOWN.
   (D) THE NAME AND WORK AFFILIATION OF  ALL  LAW  ENFORCEMENT  PERSONNEL
 WHOM  THE  PROSECUTOR  KNOWS TO HAVE EVIDENCE OR INFORMATION RELEVANT TO
 ANY OFFENSE CHARGED OR TO ANY POTENTIAL DEFENSE   THERETO,  INCLUDING  A
 DESIGNATION BY THE PROSECUTOR AS TO WHICH OF THOSE PERSONS MAY BE CALLED
 AS  WITNESSES. INFORMATION UNDER THIS SUBDIVISION RELATING TO UNDERCOVER
 PERSONNEL  MAY BE WITHHELD, AND REDACTED FROM DISCOVERY MATERIALS, WITH-
 OUT NEED FOR A MOTION PURSUANT TO SECTION 245.70 OF  THIS  ARTICLE;  BUT
 THE PROSECUTION SHALL NOTIFY THE DEFENDANT IN WRITING THAT SUCH INFORMA-
 TION  HAS  NOT BEEN DISCLOSED, UNLESS THE COURT RULES OTHERWISE FOR GOOD
 CAUSE SHOWN.
   (E) ALL STATEMENTS, WRITTEN OR RECORDED OR SUMMARIZED IN  ANY  WRITING
 OR  RECORDING, MADE BY PERSONS WHO HAVE EVIDENCE OR INFORMATION RELEVANT
 TO ANY OFFENSE CHARGED OR TO ANY POTENTIAL   DEFENSE THERETO,  INCLUDING

 S. 1509--C                         136                        A. 2009--C
 
 ALL  POLICE  REPORTS,  NOTES  OF POLICE AND OTHER INVESTIGATORS, AND LAW
 ENFORCEMENT AGENCY REPORTS. THIS  PROVISION  ALSO  INCLUDES  STATEMENTS,
 WRITTEN  OR  RECORDED  OR  SUMMARIZED  IN  ANY  WRITING OR RECORDING, BY
 PERSONS TO BE CALLED AS WITNESSES AT PRE-TRIAL HEARINGS.
   (F)  EXPERT  OPINION  EVIDENCE,  INCLUDING THE NAME, BUSINESS ADDRESS,
 CURRENT CURRICULUM  VITAE, A LIST OF PUBLICATIONS, AND  ALL  PROFICIENCY
 TESTS  AND  RESULTS  ADMINISTERED  OR TAKEN WITHIN THE PAST TEN YEARS OF
 EACH EXPERT WITNESS WHOM THE PROSECUTOR INTENDS TO CALL AS A WITNESS  AT
 TRIAL  OR  A  PRE-TRIAL  HEARING, AND ALL REPORTS PREPARED BY THE EXPERT
 THAT PERTAIN TO THE CASE, OR IF NO REPORT IS PREPARED, A WRITTEN  STATE-
 MENT OF THE FACTS AND OPINIONS TO WHICH THE EXPERT IS EXPECTED TO TESTI-
 FY  AND  A  SUMMARY OF THE GROUNDS FOR EACH OPINION. THIS PARAGRAPH DOES
 NOT ALTER OR IN ANY WAY AFFECT THE PROCEDURES, OBLIGATIONS OR RIGHTS SET
 FORTH IN SECTION 250.10 OF THIS  TITLE. IF IN THE EXERCISE OF REASONABLE
 DILIGENCE THIS INFORMATION IS UNAVAILABLE FOR DISCLOSURE WITHIN THE TIME
 PERIOD SPECIFIED IN SUBDIVISION ONE OF SECTION 245.10 OF  THIS  ARTICLE,
 THAT  PERIOD    SHALL  BE  STAYED  WITHOUT NEED FOR A MOTION PURSUANT TO
 SUBDIVISION TWO OF SECTION 245.70 OF THIS ARTICLE; EXCEPT THAT THE PROS-
 ECUTION SHALL NOTIFY THE DEFENDANT IN WRITING THAT SUCH INFORMATION  HAS
 NOT BEEN DISCLOSED, AND SUCH DISCLOSURE SHALL BE MADE AS SOON AS PRACTI-
 CABLE  AND NOT LATER THAN SIXTY CALENDAR DAYS BEFORE THE FIRST SCHEDULED
 TRIAL DATE, UNLESS AN ORDER IS OBTAINED PURSUANT TO  SECTION  245.70  OF
 THIS  ARTICLE.  WHEN THE PROSECUTION'S EXPERT WITNESS IS BEING CALLED IN
 RESPONSE TO DISCLOSURE OF AN EXPERT WITNESS BY THE DEFENDANT, THE  COURT
 SHALL  ALTER  A SCHEDULED TRIAL DATE, IF NECESSARY, TO  ALLOW THE PROSE-
 CUTION THIRTY CALENDAR DAYS TO MAKE THE  DISCLOSURE  AND  THE  DEFENDANT
 THIRTY CALENDAR DAYS TO PREPARE AND RESPOND TO THE NEW MATERIALS.
   (G) ALL TAPES OR OTHER ELECTRONIC RECORDINGS, INCLUDING ALL ELECTRONIC
 RECORDINGS  OF  911  TELEPHONE CALLS MADE OR RECEIVED IN CONNECTION WITH
 THE ALLEGED CRIMINAL INCIDENT, AND A DESIGNATION BY THE PROSECUTOR AS TO
 WHICH OF THE RECORDINGS UNDER THIS PARAGRAPH THE PROSECUTION INTENDS  TO
 INTRODUCE AT TRIAL OR A PRE-TRIAL HEARING. IF THE DISCOVERABLE MATERIALS
 UNDER  THIS  PARAGRAPH EXCEED TEN HOURS IN TOTAL LENGTH, THE PROSECUTION
 MAY DISCLOSE ONLY THE RECORDINGS THAT IT INTENDS TO INTRODUCE  AT  TRIAL
 OR  A PRE-TRIAL HEARING, ALONG WITH A LIST OF THE SOURCE AND APPROXIMATE
 QUANTITY OF OTHER RECORDINGS AND THEIR GENERAL SUBJECT MATTER IF  KNOWN,
 AND THE DEFENDANT SHALL HAVE THE RIGHT UPON REQUEST TO OBTAIN RECORDINGS
 NOT  PREVIOUSLY  DISCLOSED. THE PROSECUTION SHALL DISCLOSE THE REQUESTED
 MATERIALS AS SOON AS PRACTICABLE AND NOT LESS THAN FIFTEEN CALENDAR DAYS
 AFTER THE DEFENDANT'S REQUEST, UNLESS AN ORDER IS OBTAINED  PURSUANT  TO
 SECTION 245.70 OF THIS ARTICLE.
   (H) ALL PHOTOGRAPHS AND DRAWINGS MADE OR COMPLETED BY A PUBLIC SERVANT
 ENGAGED  IN  LAW    ENFORCEMENT ACTIVITY, OR WHICH WERE MADE BY A PERSON
 WHOM THE PROSECUTOR INTENDS TO CALL AS A WITNESS AT TRIAL OR A PRE-TRIAL
 HEARING, OR WHICH RELATE TO THE SUBJECT MATTER OF THE CASE.
   (I) ALL PHOTOGRAPHS, PHOTOCOPIES AND REPRODUCTIONS MADE BY OR  AT  THE
 DIRECTION  OF  LAW  ENFORCEMENT  PERSONNEL  OF ANY PROPERTY PRIOR TO ITS
 RELEASE PURSUANT TO SECTION 450.10 OF THE PENAL  LAW.
   (J) ALL REPORTS, DOCUMENTS, RECORDS, DATA, CALCULATIONS  OR  WRITINGS,
 INCLUDING  BUT  NOT LIMITED TO   PRELIMINARY TESTS AND SCREENING RESULTS
 AND  BENCH  NOTES  AND  ANALYSES  PERFORMED  OR  STORED  ELECTRONICALLY,
 CONCERNING  PHYSICAL  OR  MENTAL    EXAMINATIONS, OR SCIENTIFIC TESTS OR
 EXPERIMENTS OR COMPARISONS, RELATING TO THE CRIMINAL ACTION OR  PROCEED-
 ING  WHICH WERE MADE BY OR AT THE REQUEST OR DIRECTION OF A PUBLIC SERV-
 ANT ENGAGED IN LAW ENFORCEMENT ACTIVITY, OR WHICH WERE MADE BY A  PERSON
 WHOM THE PROSECUTOR INTENDS TO CALL AS A WITNESS AT TRIAL OR A PRE-TRIAL

 S. 1509--C                         137                        A. 2009--C
 
 HEARING,  OR  WHICH  THE  PROSECUTION INTENDS TO INTRODUCE AT TRIAL OR A
 PRE-TRIAL HEARING. INFORMATION UNDER THIS PARAGRAPH ALSO  INCLUDES,  BUT
 IS  NOT  LIMITED  TO,  LABORATORY  INFORMATION MANAGEMENT SYSTEM RECORDS
 RELATING  TO  SUCH  MATERIALS, ANY PRELIMINARY OR FINAL FINDINGS OF NON-
 CONFORMANCE WITH ACCREDITATION, INDUSTRY OR  GOVERNMENTAL  STANDARDS  OR
 LABORATORY PROTOCOLS, AND ANY CONFLICTING ANALYSES OR RESULTS BY LABORA-
 TORY PERSONNEL REGARDLESS OF THE LABORATORY'S FINAL ANALYSIS OR RESULTS.
 IF  THE  PROSECUTION  SUBMITTED  ONE  OR  MORE  ITEMS FOR TESTING TO, OR
 RECEIVED RESULTS FROM, A FORENSIC SCIENCE LABORATORY OR  SIMILAR  ENTITY
 NOT UNDER THE PROSECUTION'S DIRECTION OR CONTROL, THE COURT ON MOTION OF
 A  PARTY SHALL ISSUE SUBPOENAS OR ORDERS TO SUCH LABORATORY OR ENTITY TO
 CAUSE MATERIALS UNDER THIS PARAGRAPH TO BE MADE  AVAILABLE  FOR  DISCLO-
 SURE.
   (K)  ALL  EVIDENCE  AND  INFORMATION, INCLUDING THAT WHICH IS KNOWN TO
 POLICE OR OTHER LAW ENFORCEMENT  AGENCIES  ACTING  ON  THE  GOVERNMENT'S
 BEHALF  IN  THE CASE, THAT TENDS TO: (I) NEGATE THE DEFENDANT'S GUILT AS
 TO A CHARGED OFFENSE; (II) REDUCE THE DEGREE OF OR MITIGATE THE  DEFEND-
 ANT'S    CULPABILITY  AS TO A CHARGED OFFENSE; (III) SUPPORT A POTENTIAL
 DEFENSE TO A CHARGED OFFENSE; (IV)  IMPEACH THE CREDIBILITY OF A  TESTI-
 FYING  PROSECUTION  WITNESS;  (V)  UNDERMINE EVIDENCE OF THE DEFENDANT'S
 IDENTITY AS A PERPETRATOR OF A CHARGED OFFENSE; (VI) PROVIDE A BASIS FOR
 A MOTION TO  SUPPRESS EVIDENCE; OR (VII) MITIGATE  PUNISHMENT.  INFORMA-
 TION  UNDER  THIS  SUBDIVISION  SHALL  BE  DISCLOSED WHETHER OR NOT SUCH
 INFORMATION IS RECORDED IN TANGIBLE FORM AND IRRESPECTIVE OF WHETHER THE
 PROSECUTOR CREDITS THE INFORMATION. THE PROSECUTOR  SHALL  DISCLOSE  THE
 INFORMATION  EXPEDITIOUSLY  UPON ITS RECEIPT AND SHALL NOT DELAY DISCLO-
 SURE IF IT IS OBTAINED EARLIER THAN THE TIME PERIOD  FOR  DISCLOSURE  IN
 SUBDIVISION ONE OF SECTION 245.10 OF THIS ARTICLE.
   (L)  A SUMMARY OF ALL PROMISES, REWARDS AND INDUCEMENTS MADE TO, OR IN
 FAVOR OF, PERSONS WHO MAY BE CALLED AS WITNESSES, AS  WELL  AS  REQUESTS
 FOR  CONSIDERATION BY PERSONS WHO MAY BE CALLED AS  WITNESSES AND COPIES
 OF ALL DOCUMENTS RELEVANT TO A PROMISE, REWARD OR INDUCEMENT.
   (M) A LIST  OF  ALL  TANGIBLE  OBJECTS  OBTAINED  FROM,  OR  ALLEGEDLY
 POSSESSED BY, THE DEFENDANT  OR A CO-DEFENDANT. THE LIST SHALL INCLUDE A
 DESIGNATION  BY  THE  PROSECUTOR  AS TO WHICH OBJECTS WERE PHYSICALLY OR
 CONSTRUCTIVELY POSSESSED BY THE DEFENDANT AND WERE  RECOVERED  DURING  A
 SEARCH  OR  SEIZURE  BY  A PUBLIC SERVANT OR AN AGENT THEREOF, AND WHICH
 TANGIBLE OBJECTS WERE RECOVERED BY A  PUBLIC SERVANT OR AN AGENT THEREOF
 AFTER ALLEGEDLY BEING ABANDONED BY THE  DEFENDANT.  IF  THE  PROSECUTION
 INTENDS  TO  PROVE THE DEFENDANT'S POSSESSION OF ANY TANGIBLE OBJECTS BY
 MEANS OF A STATUTORY PRESUMPTION OF POSSESSION, IT SHALL DESIGNATE  SUCH
 INTENTION  AS TO EACH SUCH OBJECT. IF REASONABLY PRACTICABLE, THE PROSE-
 CUTION SHALL ALSO DESIGNATE THE LOCATION FROM WHICH EACH TANGIBLE OBJECT
 WAS RECOVERED. THERE IS ALSO A RIGHT TO INSPECT,  COPY,  PHOTOGRAPH  AND
 TEST THE LISTED TANGIBLE OBJECTS.
   (N)  WHETHER  A  SEARCH  WARRANT  HAS  BEEN EXECUTED AND ALL DOCUMENTS
 RELATING THERETO, INCLUDING BUT NOT LIMITED TO THE WARRANT, THE  WARRANT
 APPLICATION,  SUPPORTING  AFFIDAVITS, A POLICE INVENTORY OF ALL PROPERTY
 SEIZED UNDER THE WARRANT, AND A TRANSCRIPT OF  ALL  TESTIMONY  OR  OTHER
 ORAL COMMUNICATIONS OFFERED IN SUPPORT OF THE WARRANT APPLICATION.
   (O)  ALL  TANGIBLE  PROPERTY THAT RELATES TO THE SUBJECT MATTER OF THE
 CASE, ALONG WITH A DESIGNATION OF WHICH ITEMS THE PROSECUTION INTENDS TO
 INTRODUCE IN ITS CASE-IN-CHIEF AT TRIAL OR A PRE-TRIAL  HEARING.  IF  IN
 THE  EXERCISE  OF  REASONABLE DILIGENCE THE PROSECUTOR HAS NOT FORMED AN
 INTENTION WITHIN THE TIME PERIOD SPECIFIED IN SUBDIVISION ONE OF SECTION
 245.10 OF THIS ARTICLE THAT AN  ITEM  UNDER  THIS  SUBDIVISION  WILL  BE

 S. 1509--C                         138                        A. 2009--C
 
 INTRODUCED AT TRIAL OR A PRE-TRIAL HEARING, THE PROSECUTION SHALL NOTIFY
 THE  DEFENDANT  IN  WRITING,  AND  THE TIME PERIOD IN WHICH TO DESIGNATE
 ITEMS AS EXHIBITS SHALL BE STAYED WITHOUT NEED FOR A MOTION PURSUANT  TO
 SUBDIVISION  TWO  OF  SECTION 245.70 OF THIS ARTICLE; BUT THE DISCLOSURE
 SHALL BE MADE AS SOON AS PRACTICABLE AND SUBJECT TO THE CONTINUING  DUTY
 TO DISCLOSE IN SECTION 245.60 OF THIS ARTICLE.
   (P)  A  COMPLETE  RECORD OF JUDGMENTS OF CONVICTION FOR ALL DEFENDANTS
 AND ALL PERSONS DESIGNATED AS POTENTIAL PROSECUTION  WITNESSES  PURSUANT
 TO PARAGRAPH (C) OF THIS SUBDIVISION, OTHER THAN THOSE WITNESSES WHO ARE
 EXPERTS.
   (Q)  WHEN IT IS KNOWN TO THE PROSECUTION, THE EXISTENCE OF ANY PENDING
 CRIMINAL ACTION AGAINST ALL PERSONS DESIGNATED AS POTENTIAL  PROSECUTION
 WITNESSES PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION.
   (R)  THE  APPROXIMATE  DATE, TIME AND PLACE OF THE OFFENSE OR OFFENSES
 CHARGED AND OF THE DEFENDANT'S SEIZURE AND ARREST.
   (S) IN ANY PROSECUTION ALLEGING A VIOLATION OF THE VEHICLE AND TRAFFIC
 LAW, WHERE THE DEFENDANT IS CHARGED BY INDICTMENT, SUPERIOR COURT INFOR-
 MATION, PROSECUTOR'S INFORMATION, INFORMATION,  OR  SIMPLIFIED  INFORMA-
 TION,  ALL  RECORDS OF CALIBRATION, CERTIFICATION, INSPECTION, REPAIR OR
 MAINTENANCE OF MACHINES AND INSTRUMENTS UTILIZED TO PERFORM  ANY  SCIEN-
 TIFIC  TESTS AND EXPERIMENTS, INCLUDING BUT NOT LIMITED TO ANY TEST OF A
 PERSON'S BREATH, BLOOD, URINE OR SALIVA, FOR THE PERIOD  OF  SIX  MONTHS
 PRIOR  AND  SIX  MONTHS  AFTER  SUCH  TEST  WAS CONDUCTED, INCLUDING THE
 RECORDS OF GAS CHROMATOGRAPHY RELATED TO THE CERTIFICATION OF ALL REFER-
 ENCE STANDARDS AND THE CERTIFICATION CERTIFICATE, IF ANY,  HELD  BY  THE
 OPERATOR  OF  THE  MACHINE  OR  INSTRUMENT.  THE TIME PERIOD REQUIRED BY
 SUBDIVISION ONE OF SECTION 245.10 OF THIS ARTICLE SHALL NOT APPLY TO THE
 DISCLOSURE OF RECORDS CREATED SIX MONTHS AFTER A TEST WAS CONDUCTED, BUT
 SUCH DISCLOSURE SHALL BE MADE AS SOON AS PRACTICABLE AND IN  ANY  EVENT,
 THE  EARLIER  OF  FIFTEEN DAYS FOLLOWING RECEIPT, OR FIFTEEN DAYS BEFORE
 THE FIRST SCHEDULED TRIAL DATE.
   (T) IN ANY PROSECUTION ALLEGING  A  VIOLATION  OF  SECTION  156.05  OR
 156.10  OF  THE  PENAL  LAW,  THE  TIME, PLACE AND MANNER SUCH VIOLATION
 OCCURRED.
   (U) (I) A COPY OF ALL ELECTRONICALLY  CREATED  OR  STORED  INFORMATION
 SEIZED  OR  OBTAINED  BY  OR  ON BEHALF OF LAW ENFORCEMENT FROM: (A) THE
 DEFENDANT AS DESCRIBED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH; OR (B)  A
 SOURCE  OTHER  THAN THE DEFENDANT WHICH RELATES TO THE SUBJECT MATTER OF
 THE CASE.
   (II) IF THE ELECTRONICALLY CREATED OR  STORED  INFORMATION  ORIGINATES
 FROM  A  DEVICE, ACCOUNT, OR OTHER ELECTRONICALLY STORED SOURCE THAT THE
 PROSECUTION BELIEVES THE DEFENDANT  OWNED,  MAINTAINED,  OR  HAD  LAWFUL
 ACCESS TO AND IS WITHIN THE POSSESSION, CUSTODY OR CONTROL OF THE PROSE-
 CUTION  OR  PERSONS  UNDER  THE  PROSECUTION'S DIRECTION OR CONTROL, THE
 PROSECUTION SHALL PROVIDE A COMPLETE COPY OF THE ELECTRONICALLY  CREATED
 OR STORED INFORMATION FROM THE DEVICE OR ACCOUNT OR OTHER SOURCE.
   (III)  IF POSSESSION OF SUCH ELECTRONICALLY CREATED OR STORED INFORMA-
 TION WOULD BE A CRIME UNDER NEW YORK STATE OR FEDERAL  LAW,  THE  PROSE-
 CUTION SHALL MAKE THOSE PORTIONS OF THE ELECTRONICALLY CREATED OR STORED
 INFORMATION  THAT  ARE  NOT  CRIMINAL  TO POSSESS AVAILABLE AS SPECIFIED
 UNDER THIS PARAGRAPH AND SHALL AFFORD COUNSEL FOR THE  DEFENDANT  ACCESS
 TO  INSPECT  CONTRABAND  PORTIONS AT A SUPERVISED LOCATION THAT PROVIDES
 REGULAR AND REASONABLE HOURS FOR SUCH ACCESS,  SUCH  AS  A  PROSECUTOR'S
 OFFICE, POLICE STATION, OR COURT.
   (IV)  THIS  PARAGRAPH  SHALL  NOT  BE CONSTRUED TO ALTER OR IN ANY WAY
 AFFECT THE RIGHT TO BE FREE FROM UNREASONABLE SEARCHES AND  SEIZURES  OR

 S. 1509--C                         139                        A. 2009--C
 
 SUCH  OTHER  RIGHTS  A  SUSPECT  OR  DEFENDANT MAY DERIVE FROM THE STATE
 CONSTITUTION OR THE UNITED STATES CONSTITUTION.  IF IN THE  EXERCISE  OF
 REASONABLE  DILIGENCE THE INFORMATION UNDER THIS PARAGRAPH IS NOT AVAIL-
 ABLE  FOR  DISCLOSURE WITHIN THE TIME PERIOD REQUIRED BY SUBDIVISION ONE
 OF SECTION 245.10 OF THIS ARTICLE, THAT PERIOD SHALL BE  STAYED  WITHOUT
 NEED  FOR A MOTION PURSUANT TO SUBDIVISION TWO OF SECTION 245.70 OF THIS
 ARTICLE, EXCEPT THAT THE PROSECUTION SHALL NOTIFY THE DEFENDANT IN WRIT-
 ING THAT SUCH INFORMATION HAS NOT BEEN DISCLOSED,  AND  SUCH  DISCLOSURE
 SHALL  BE  MADE  AS  SOON  AS  PRACTICABLE AND NOT LATER THAN FORTY-FIVE
 CALENDAR DAYS BEFORE THE FIRST SCHEDULED TRIAL DATE, UNLESS AN ORDER  IS
 OBTAINED PURSUANT TO SECTION 245.70 OF THIS ARTICLE.
   2.  DUTIES  OF THE PROSECUTION.  THE PROSECUTOR SHALL MAKE A DILIGENT,
 GOOD FAITH EFFORT TO ASCERTAIN THE EXISTENCE OF MATERIAL OR  INFORMATION
 DISCOVERABLE  UNDER  SUBDIVISION  ONE  OF THIS SECTION AND TO CAUSE SUCH
 MATERIAL OR INFORMATION TO BE MADE  AVAILABLE  FOR  DISCOVERY  WHERE  IT
 EXISTS  BUT  IS  NOT  WITHIN  THE  PROSECUTOR'S  POSSESSION,  CUSTODY OR
 CONTROL; PROVIDED THAT THE PROSECUTOR SHALL NOT BE REQUIRED TO OBTAIN BY
 SUBPOENA DUCES TECUM MATERIAL OR INFORMATION  WHICH  THE  DEFENDANT  MAY
 THEREBY  OBTAIN.  FOR  PURPOSES  OF SUBDIVISION ONE OF THIS SECTION, ALL
 ITEMS AND INFORMATION RELATED TO THE PROSECUTION  OF  A  CHARGE  IN  THE
 POSSESSION  OF  ANY  NEW  YORK  STATE OR LOCAL POLICE OR LAW ENFORCEMENT
 AGENCY SHALL BE DEEMED TO BE IN THE POSSESSION OF THE  PROSECUTION.  THE
 PROSECUTION  SHALL  ALSO  IDENTIFY  ANY  LABORATORY  HAVING CONTACT WITH
 EVIDENCE RELATED TO THE PROSECUTION OF A CHARGE. THIS SUBDIVISION  SHALL
 NOT  REQUIRE  THE PROSECUTOR TO ASCERTAIN THE EXISTENCE OF WITNESSES NOT
 KNOWN TO THE POLICE OR ANOTHER LAW ENFORCEMENT AGENCY, OR THE WRITTEN OR
 RECORDED STATEMENTS THEREOF, UNDER PARAGRAPH (C) OR (E)  OF  SUBDIVISION
 ONE OF THIS SECTION.
   3.  SUPPLEMENTAL  DISCOVERY  FOR  THE DEFENDANT. THE PROSECUTION SHALL
 DISCLOSE TO THE DEFENDANT A LIST OF ALL MISCONDUCT AND CRIMINAL ACTS  OF
 THE DEFENDANT NOT CHARGED IN THE INDICTMENT, SUPERIOR COURT INFORMATION,
 PROSECUTOR'S  INFORMATION, INFORMATION, OR SIMPLIFIED INFORMATION, WHICH
 THE PROSECUTION INTENDS TO USE AT TRIAL FOR PURPOSES OF  (A)  IMPEACHING
 THE  CREDIBILITY  OF  THE  DEFENDANT, OR (B) AS SUBSTANTIVE PROOF OF ANY
 MATERIAL ISSUE IN THE CASE. IN ADDITION THE PROSECUTION SHALL  DESIGNATE
 WHETHER  IT  INTENDS  TO  USE  EACH LISTED ACT FOR IMPEACHMENT AND/OR AS
 SUBSTANTIVE PROOF.
   4. RECIPROCAL DISCOVERY FOR THE PROSECUTION. (A) THE DEFENDANT  SHALL,
 SUBJECT  TO CONSTITUTIONAL LIMITATIONS, DISCLOSE TO THE PROSECUTION, AND
 PERMIT THE PROSECUTION TO DISCOVER, INSPECT,  COPY  OR  PHOTOGRAPH,  ANY
 MATERIAL AND RELEVANT EVIDENCE WITHIN THE DEFENDANT'S OR COUNSEL FOR THE
 DEFENDANT'S  POSSESSION OR CONTROL THAT IS DISCOVERABLE UNDER PARAGRAPHS
 (F), (G), (H), (J), (L) AND (O) OF  SUBDIVISION  ONE  OF  THIS  SECTION,
 WHICH  THE DEFENDANT INTENDS TO INTRODUCE AT TRIAL  OR A PRE-TRIAL HEAR-
 ING, AND THE NAMES, ADDRESSES, BIRTH DATES, AND ALL STATEMENTS,  WRITTEN
 OR  RECORDED OR SUMMARIZED IN ANY WRITING OR RECORDING, OF THOSE PERSONS
 OTHER THAN THE DEFENDANT WHOM THE DEFENDANT INTENDS TO CALL AS WITNESSES
 AT TRIAL OR A PRE-TRIAL HEARING.
   (B) DISCLOSURE OF THE NAME, ADDRESS, BIRTH DATE, AND  ALL  STATEMENTS,
 WRITTEN  OR  RECORDED  OR  SUMMARIZED  IN ANY WRITING OR RECORDING, OF A
 PERSON WHOM THE DEFENDANT INTENDS TO CALL AS  A  WITNESS  FOR  THE  SOLE
 PURPOSE  OF IMPEACHING A PROSECUTION WITNESS IS NOT REQUIRED UNTIL AFTER
 THE PROSECUTION WITNESS HAS TESTIFIED AT TRIAL.
   (C) IF IN  THE  EXERCISE  OF  REASONABLE  DILIGENCE  THE  RECIPROCALLY
 DISCOVERABLE  INFORMATION  UNDER PARAGRAPH (F) OR (O) OF SUBDIVISION ONE
 OF THIS SECTION IS UNAVAILABLE FOR DISCLOSURE WITHIN   THE  TIME  PERIOD

 S. 1509--C                         140                        A. 2009--C
 
 SPECIFIED  IN  SUBDIVISION  TWO  OF SECTION 245.10 OF THIS ARTICLE, SUCH
 TIME PERIOD SHALL BE STAYED WITHOUT NEED FOR A MOTION PURSUANT TO SUBDI-
 VISION TWO OF SECTION 245.70 OF THIS  ARTICLE; BUT THE DISCLOSURE  SHALL
 BE  MADE  AS  SOON  AS PRACTICABLE AND SUBJECT TO THE CONTINUING DUTY TO
 DISCLOSE IN SECTION 245.60 OF THIS ARTICLE.
   5. STAY OF AUTOMATIC DISCOVERY; REMEDIES AND SANCTIONS. SECTION 245.10
 AND SUBDIVISIONS  ONE, TWO, THREE AND FOUR OF THIS  SECTION  SHALL  HAVE
 THE  FORCE AND EFFECT OF A COURT ORDER, AND FAILURE TO PROVIDE DISCOVERY
 PURSUANT TO SUCH SECTION OR SUBDIVISION MAY RESULT IN APPLICATION OF ANY
 REMEDIES OR SANCTIONS PERMITTED FOR NON-COMPLIANCE WITH  A  COURT  ORDER
 UNDER  SECTION  245.80  OF  THIS ARTICLE. HOWEVER, IF IN THE JUDGMENT OF
 EITHER PARTY GOOD CAUSE EXISTS FOR DECLINING TO MAKE ANY OF THE  DISCLO-
 SURES SET FORTH ABOVE, SUCH PARTY MAY MOVE FOR A PROTECTIVE ORDER PURSU-
 ANT  TO  SECTION 245.70 OF THIS ARTICLE AND PRODUCTION OF THE ITEM SHALL
 BE STAYED PENDING A RULING BY THE COURT. THE  OPPOSING  PARTY  SHALL  BE
 NOTIFIED  IN  WRITING  THAT INFORMATION HAS NOT   BEEN DISCLOSED UNDER A
 PARTICULAR SECTION. WHEN SOME  PARTS  OF  MATERIAL  OR  INFORMATION  ARE
 DISCOVERABLE  BUT  IN  THE  JUDGMENT  OF  A  PARTY GOOD CAUSE EXISTS FOR
 DECLINING TO DISCLOSE OTHER  PARTS,  THE  DISCOVERABLE  PARTS  SHALL  BE
 DISCLOSED  AND  THE  DISCLOSING PARTY SHALL GIVE NOTICE IN  WRITING THAT
 NON-DISCOVERABLE PARTS HAVE BEEN WITHHELD.
   6. REDACTIONS PERMITTED.  EITHER  PARTY  MAY  REDACT  SOCIAL  SECURITY
 NUMBERS AND TAX NUMBERS FROM DISCLOSURES UNDER THIS ARTICLE.
   7.  PRESUMPTION  OF OPENNESS. THERE SHALL BE A PRESUMPTION IN FAVOR OF
 DISCLOSURE WHEN INTERPRETING SECTIONS 245.10 AND 245.25, AND SUBDIVISION
 ONE OF SECTION 245.20, OF THIS ARTICLE.
 § 245.25 DISCLOSURE PRIOR TO CERTAIN GUILTY PLEAS.
   1. PRE-INDICTMENT GUILTY PLEAS. UPON A  FELONY  COMPLAINT,  WHERE  THE
 PROSECUTION HAS MADE A PRE-INDICTMENT GUILTY PLEA OFFER REQUIRING A PLEA
 TO  A CRIME, THE PROSECUTOR MUST DISCLOSE TO THE DEFENSE, AND PERMIT THE
 DEFENSE TO DISCOVER, INSPECT, COPY, PHOTOGRAPH AND TEST, ALL  ITEMS  AND
 INFORMATION  THAT WOULD BE DISCOVERABLE PRIOR TO TRIAL UNDER SUBDIVISION
 ONE OF SECTION 245.20 OF THIS ARTICLE AND ARE IN THE POSSESSION, CUSTODY
 OR CONTROL OF  THE  PROSECUTION.  THE  PROSECUTION  SHALL  DISCLOSE  THE
 DISCOVERABLE  ITEMS  AND  INFORMATION  NOT LESS THAN THREE CALENDAR DAYS
 PRIOR TO THE EXPIRATION DATE OF ANY GUILTY PLEA OFFER BY THE PROSECUTION
 OR ANY DEADLINE IMPOSED BY THE COURT FOR ACCEPTANCE OF THE  GUILTY  PLEA
 OFFER.  IF THE PROSECUTION DOES NOT COMPLY WITH THE REQUIREMENTS OF THIS
 SUBDIVISION,  THEN, ON A DEFENDANT'S MOTION ALLEGING A VIOLATION OF THIS
 SUBDIVISION, THE COURT MUST CONSIDER THE IMPACT OF ANY VIOLATION ON  THE
 DEFENDANT'S  DECISION  TO  ACCEPT  OR  REJECT A PLEA OFFER. IF THE COURT
 FINDS THAT SUCH VIOLATION MATERIALLY AFFECTED THE DEFENDANT'S  DECISION,
 AND  IF  THE  PROSECUTION  DECLINES TO REINSTATE THE LAPSED OR WITHDRAWN
 PLEA OFFER, THE COURT  -  AS  A  PRESUMPTIVE  MINIMUM  SANCTION  -  MUST
 PRECLUDE  THE  ADMISSION  AT  TRIAL  OF  ANY  EVIDENCE  NOT DISCLOSED AS
 REQUIRED UNDER THIS SUBDIVISION. THE COURT MAY  TAKE  OTHER  APPROPRIATE
 ACTION AS NECESSARY TO ADDRESS THE NON-COMPLIANCE. THE RIGHTS UNDER THIS
 SUBDIVISION DO NOT APPLY TO ITEMS OR INFORMATION THAT ARE THE SUBJECT OF
 A  PROTECTIVE  ORDER  UNDER  SECTION 245.70 OF THIS ARTICLE; BUT IF SUCH
 INFORMATION TENDS TO BE EXCULPATORY,  THE  COURT  SHALL  RECONSIDER  THE
 PROTECTIVE  ORDER.  A  DEFENDANT  MAY WAIVE HIS OR HER RIGHTS UNDER THIS
 SUBDIVISION; BUT A GUILTY PLEA OFFER MAY  NOT  BE  CONDITIONED  ON  SUCH
 WAIVER.
   2. OTHER GUILTY PLEAS. UPON AN INDICTMENT, SUPERIOR COURT INFORMATION,
 PROSECUTOR'S    INFORMATION,  INFORMATION,  SIMPLIFIED  INFORMATION,  OR
 MISDEMEANOR COMPLAINT, WHERE THE PROSECUTION  HAS  MADE  A  GUILTY  PLEA

 S. 1509--C                         141                        A. 2009--C
 
 OFFER  REQUIRING  A PLEA TO A CRIME, THE PROSECUTOR MUST DISCLOSE TO THE
 DEFENSE, AND PERMIT THE DEFENSE TO DISCOVER, INSPECT,  COPY,  PHOTOGRAPH
 AND  TEST, ALL ITEMS AND INFORMATION THAT WOULD BE DISCOVERABLE PRIOR TO
 TRIAL  UNDER  SUBDIVISION  ONE OF SECTION 245.20 OF THIS ARTICLE AND ARE
 WITHIN THE POSSESSION, CUSTODY OR CONTROL OF THE PROSECUTION. THE PROSE-
 CUTION SHALL DISCLOSE THE DISCOVERABLE ITEMS AND  INFORMATION  NOT  LESS
 THAN SEVEN CALENDAR DAYS PRIOR TO THE EXPIRATION DATE OF ANY GUILTY PLEA
 OFFER  BY  THE  PROSECUTION  OR  ANY  DEADLINE  IMPOSED BY THE COURT FOR
 ACCEPTANCE OF THE GUILTY PLEA OFFER. IF THE PROSECUTION DOES NOT  COMPLY
 WITH THE REQUIREMENTS OF THIS SUBDIVISION, THEN, ON A DEFENDANT'S MOTION
 ALLEGING  A  VIOLATION  OF THIS SUBDIVISION, THE COURT MUST CONSIDER THE
 IMPACT OF ANY VIOLATION ON THE DEFENDANT'S DECISION TO ACCEPT OR  REJECT
 A PLEA OFFER. IF THE COURT FINDS THAT SUCH VIOLATION MATERIALLY AFFECTED
 THE  DEFENDANT'S  DECISION, AND IF THE PROSECUTION DECLINES TO REINSTATE
 THE LAPSED OR WITHDRAWN PLEA OFFER, THE COURT - AS A PRESUMPTIVE MINIMUM
 SANCTION - MUST PRECLUDE THE ADMISSION AT  TRIAL  OF  ANY  EVIDENCE  NOT
 DISCLOSED  AS  REQUIRED UNDER THIS SUBDIVISION. THE COURT MAY TAKE OTHER
 APPROPRIATE ACTION AS  NECESSARY  TO  ADDRESS  THE  NON-COMPLIANCE.  THE
 RIGHTS  UNDER THIS SUBDIVISION DO NOT APPLY TO ITEMS OR INFORMATION THAT
 ARE THE SUBJECT OF A PROTECTIVE ORDER UNDER SECTION 245.70 OF THIS ARTI-
 CLE; BUT IF SUCH INFORMATION TENDS TO BE EXCULPATORY,  THE  COURT  SHALL
 RECONSIDER  THE    PROTECTIVE  ORDER.  A  DEFENDANT MAY WAIVE HIS OR HER
 RIGHTS UNDER THIS SUBDIVISION; BUT A GUILTY PLEA OFFER MAY NOT BE CONDI-
 TIONED ON SUCH WAIVER.
 § 245.30 COURT ORDERS FOR PRESERVATION, ACCESS OR DISCOVERY.
   1. ORDER TO PRESERVE EVIDENCE. AT ANY TIME, A PARTY  MAY  MOVE  FOR  A
 COURT  ORDER  TO  ANY  INDIVIDUAL, AGENCY OR OTHER ENTITY IN POSSESSION,
 CUSTODY OR CONTROL OF ITEMS WHICH RELATE TO THE SUBJECT  MATTER  OF  THE
 CASE  OR  ARE OTHERWISE RELEVANT, REQUIRING THAT SUCH ITEMS BE PRESERVED
 FOR A SPECIFIED PERIOD OF TIME. THE COURT SHALL HEAR AND RULE UPON  SUCH
 MOTIONS  EXPEDITIOUSLY.  THE    COURT MAY MODIFY OR VACATE SUCH AN ORDER
 UPON A SHOWING THAT PRESERVATION  OF  PARTICULAR  EVIDENCE  WILL  CREATE
 SIGNIFICANT  HARDSHIP TO SUCH INDIVIDUAL, AGENCY OR ENTITY, ON CONDITION
 THAT THE PROBATIVE VALUE OF THAT EVIDENCE IS PRESERVED  BY  A  SPECIFIED
 ALTERNATIVE MEANS.
   2. ORDER TO GRANT ACCESS TO PREMISES. WITHOUT PREJUDICE TO ITS ABILITY
 TO  ISSUE  A  SUBPOENA  PURSUANT TO THIS CHAPTER AND AFTER AN ACCUSATORY
 INSTRUMENT HAS BEEN FILED, THE DEFENDANT MAY MOVE, UPON  NOTICE  TO  THE
 PROSECUTION  AND ANY IMPACTED INDIVIDUAL, AGENCY, OR ENTITY, FOR A COURT
 ORDER TO ACCESS A CRIME SCENE OR OTHER PREMISES RELEVANT TO THE  SUBJECT
 MATTER  OF THE CASE, REQUIRING THAT COUNSEL FOR THE DEFENDANT BE GRANTED
 REASONABLE ACCESS TO INSPECT, PHOTOGRAPH, OR MEASURE SUCH CRIME SCENE OR
 PREMISES, AND THAT THE CONDITION OF THE CRIME SCENE OR  PREMISES  REMAIN
 UNCHANGED IN THE INTERIM. THE COURT SHALL CONSIDER DEFENDANT'S EXPRESSED
 NEED  FOR  ACCESS TO THE PREMISES INCLUDING THE RISK THAT DEFENDANT WILL
 BE DEPRIVED OF EVIDENCE OR INFORMATION RELEVANT TO THE CASE,  THE  POSI-
 TION  OF ANY INDIVIDUAL OR ENTITY WITH POSSESSORY OR OWNERSHIP RIGHTS TO
 THE PREMISES, THE NATURE OF THE PRIVACY INTEREST AND  ANY  PERCEIVED  OR
 ACTUAL HARDSHIP OF THE INDIVIDUAL OR ENTITY WITH POSSESSORY OR OWNERSHIP
 RIGHTS, AND THE POSITION OF THE PROSECUTION WITH RESPECT TO ANY APPLICA-
 TION  FOR ACCESS TO THE PREMISES. THE COURT MAY DENY ACCESS TO THE PREM-
 ISES WHEN THE PROBATIVE VALUE OF ACCESS TO SUCH  LOCATION  HAS  BEEN  OR
 WILL  BE  PRESERVED BY SPECIFIED ALTERNATIVE MEANS.  IF THE COURT GRANTS
 ACCESS TO THE PREMISES, THE  INDIVIDUAL  OR  ENTITY  WITH  OWNERSHIP  OR
 POSSESSORY  RIGHTS  TO THE PREMISES MAY REQUEST LAW ENFORCEMENT PRESENCE

 S. 1509--C                         142                        A. 2009--C
 
 AT THE PREMISES WHILE DEFENSE COUNSEL OR  A  REPRESENTATIVE  THEREOF  IS
 PRESENT.
   3.  DISCRETIONARY  DISCOVERY  BY  ORDER OF THE COURT. THE COURT IN ITS
 DISCRETION MAY, UPON A SHOWING BY THE  DEFENDANT  THAT  THE  REQUEST  IS
 REASONABLE  AND  THAT  THE DEFENDANT IS UNABLE WITHOUT UNDUE HARDSHIP TO
 OBTAIN THE SUBSTANTIAL EQUIVALENT BY OTHER MEANS, ORDER THE PROSECUTION,
 OR ANY INDIVIDUAL, AGENCY OR OTHER ENTITY SUBJECT TO THE JURISDICTION OF
 THE COURT, TO MAKE AVAILABLE FOR DISCLOSURE TO THE DEFENDANT ANY MATERI-
 AL OR INFORMATION WHICH RELATES TO THE SUBJECT MATTER OF THE CASE AND IS
 REASONABLY LIKELY TO BE MATERIAL. A MOTION UNDER THIS  SUBDIVISION  MUST
 BE  ON  NOTICE  TO ANY PERSON OR ENTITY AFFECTED BY THE ORDER. THE COURT
 MAY, ON ITS OWN, UPON REQUEST OF ANY PERSON OR ENTITY  AFFECTED  BY  THE
 ORDER, MODIFY OR VACATE THE ORDER IF COMPLIANCE WOULD BE UNREASONABLE OR
 WILL  CREATE  SIGNIFICANT  HARDSHIP. FOR GOOD CAUSE SHOWN, THE COURT MAY
 PERMIT A PARTY SEEKING OR OPPOSING A DISCRETIONARY  ORDER  OF  DISCOVERY
 UNDER  THIS SUBDIVISION, OR ANOTHER AFFECTED PERSON OR ENTITY, TO SUBMIT
 PAPERS OR TESTIFY ON THE RECORD EX PARTE OR IN CAMERA.  FOR  GOOD  CAUSE
 SHOWN,  ANY SUCH PAPERS AND A TRANSCRIPT OF SUCH TESTIMONY MAY BE SEALED
 AND SHALL CONSTITUTE A PART OF THE RECORD ON APPEAL.
 § 245.35 COURT ORDERED PROCEDURES TO FACILITATE COMPLIANCE.
   TO FACILITATE COMPLIANCE WITH THIS ARTICLE, AND TO REDUCE  OR  STREAM-
 LINE  LITIGATION  OF  ANY  DISPUTES  ABOUT  DISCOVERY,  THE COURT IN ITS
 DISCRETION MAY ISSUE AN ORDER:
   1. REQUIRING THAT THE PROSECUTOR AND COUNSEL FOR THE  DEFENDANT  DILI-
 GENTLY  CONFER  TO  ATTEMPT  TO REACH AN ACCOMMODATION AS TO ANY DISPUTE
 CONCERNING DISCOVERY PRIOR TO SEEKING A RULING FROM THE COURT;
   2. REQUIRING A DISCOVERY COMPLIANCE CONFERENCE  AT  A  SPECIFIED  TIME
 PRIOR  TO  TRIAL BETWEEN THE PROSECUTOR, COUNSEL FOR ALL DEFENDANTS, AND
 THE COURT OR ITS STAFF;
   3. REQUIRING THE PROSECUTION TO  FILE  AN  ADDITIONAL  CERTIFICATE  OF
 COMPLIANCE  THAT STATES THAT  THE PROSECUTOR AND/OR AN APPROPRIATE NAMED
 AGENT HAS MADE REASONABLE INQUIRIES OF ALL  POLICE  OFFICERS  AND  OTHER
 PERSONS  WHO  HAVE  PARTICIPATED IN INVESTIGATING OR EVALUATING THE CASE
 ABOUT THE EXISTENCE OF ANY  FAVORABLE  EVIDENCE  OR  INFORMATION  WITHIN
 PARAGRAPH  (K)  OF  SUBDIVISION  ONE  OF SECTION 245.20 OF THIS ARTICLE,
 INCLUDING SUCH EVIDENCE OR INFORMATION THAT WAS NOT REDUCED  TO  WRITING
 OR  OTHERWISE  MEMORIALIZED  OR PRESERVED AS EVIDENCE, AND HAS DISCLOSED
 ANY SUCH  INFORMATION TO THE DEFENDANT; AND/OR
   4. REQUIRING OTHER MEASURES OR  PROCEEDINGS  DESIGNED  TO  CARRY  INTO
 EFFECT THE GOALS OF THIS ARTICLE.
 § 245.40 NON-TESTIMONIAL EVIDENCE FROM THE DEFENDANT.
   1.  AVAILABILITY.  AFTER  THE  FILING OF AN ACCUSATORY INSTRUMENT, AND
 SUBJECT TO CONSTITUTIONAL  LIMITATIONS, THE COURT MAY,  UPON  MOTION  OF
 THE  PROSECUTION  SHOWING  PROBABLE  CAUSE  TO BELIEVE THE DEFENDANT HAS
 COMMITTED THE CRIME, A CLEAR INDICATION THAT RELEVANT MATERIAL  EVIDENCE
 WILL  BE FOUND, AND THAT THE METHOD USED TO SECURE SUCH EVIDENCE IS SAFE
 AND RELIABLE, REQUIRE A DEFENDANT  TO PROVIDE NON-TESTIMONIAL  EVIDENCE,
 INCLUDING TO:
   (A) APPEAR IN A LINEUP;
   (B) SPEAK FOR IDENTIFICATION BY A WITNESS OR POTENTIAL WITNESS;
   (C) BE FINGERPRINTED;
   (D) POSE FOR PHOTOGRAPHS NOT INVOLVING REENACTMENT OF AN EVENT;
   (E)  PERMIT  THE TAKING OF SAMPLES OF THE DEFENDANT'S BLOOD, HAIR, AND
 OTHER MATERIALS OF THE DEFENDANT'S BODY THAT  INVOLVES  NO  UNREASONABLE
 INTRUSION THEREOF;
   (F) PROVIDE SPECIMENS OF THE DEFENDANT'S HANDWRITING; AND

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   (G)  SUBMIT  TO  A  REASONABLE  PHYSICAL  OR MEDICAL INSPECTION OF THE
 DEFENDANT'S BODY.
   2. LIMITATIONS. THIS SECTION SHALL NOT BE CONSTRUED TO ALTER OR IN ANY
 WAY  AFFECT  THE ISSUANCE OF A SIMILAR COURT ORDER, AS MAY BE AUTHORIZED
 BY LAW, BEFORE THE FILING OF AN ACCUSATORY INSTRUMENT,  CONSISTENT  WITH
 SUCH  RIGHTS  AS THE DEFENDANT MAY DERIVE FROM THE STATE CONSTITUTION OR
 THE UNITED STATES CONSTITUTION. THIS SECTION SHALL NOT BE  CONSTRUED  TO
 ALTER  OR  IN ANY WAY AFFECT THE ADMINISTRATION OF A CHEMICAL TEST WHERE
 OTHERWISE AUTHORIZED. AN ORDER PURSUANT TO THIS SECTION  MAY BE  DENIED,
 LIMITED OR CONDITIONED AS PROVIDED IN SECTION 245.70 OF THIS ARTICLE.
 § 245.45 DNA COMPARISON ORDER.
   WHERE  PROPERTY  IN  THE PROSECUTION'S POSSESSION, CUSTODY, OR CONTROL
 CONSISTS OF A   DEOXYRIBONUCLEIC  ACID  ("DNA")  PROFILE  OBTAINED  FROM
 PROBATIVE  BIOLOGICAL  MATERIAL GATHERED IN CONNECTION WITH THE INVESTI-
 GATION OF THE CRIME, OR THE DEFENDANT, OR THE PROSECUTION OF THE DEFEND-
 ANT, AND THE DEFENDANT ESTABLISHES (A) THAT SUCH PROFILE  COMPLIES  WITH
 FEDERAL  BUREAU  OF  INVESTIGATION  OR STATE REQUIREMENTS, WHICHEVER ARE
 APPLICABLE AND AS SUCH REQUIREMENTS ARE APPLIED TO LAW ENFORCEMENT AGEN-
 CIES SEEKING A KEYBOARD SEARCH OR SIMILAR COMPARISON, AND (B)  THAT  THE
 DATA MEETS STATE DNA INDEX  SYSTEM OR NATIONAL DNA INDEX SYSTEM CRITERIA
 AS  SUCH CRITERIA ARE APPLIED TO LAW ENFORCEMENT AGENCIES SEEKING SUCH A
 KEYBOARD SEARCH OR SIMILAR COMPARISON, THE COURT MAY, UPON MOTION  OF  A
 DEFENDANT  AGAINST  WHOM  AN  INDICTMENT,  SUPERIOR  COURT  INFORMATION,
 PROSECUTOR'S INFORMATION,  INFORMATION,  OR  SIMPLIFIED  INFORMATION  IS
 PENDING,  ORDER  AN  ENTITY  THAT  HAS  ACCESS TO THE COMBINED DNA INDEX
 SYSTEM OR ITS SUCCESSOR SYSTEM TO COMPARE SUCH DNA PROFILE  AGAINST  DNA
 DATABANKS    BY  KEYBOARD  SEARCHES,  OR  A SIMILAR METHOD THAT DOES NOT
 INVOLVE UPLOADING, UPON NOTICE TO BOTH PARTIES AND THE  ENTITY  REQUIRED
 TO  PERFORM  THE  SEARCH,  UPON  A  SHOWING BY THE DEFENDANT THAT SUCH A
 COMPARISON IS MATERIAL TO THE PRESENTATION OF HIS  OR  HER  DEFENSE  AND
 THAT  THE  REQUEST  IS  REASONABLE.    FOR  PURPOSES  OF THIS SECTION, A
 "KEYBOARD SEARCH" SHALL MEAN A SEARCH OF A  DNA  PROFILE  AGAINST    THE
 DATABANK  IN  WHICH  THE  PROFILE THAT IS SEARCHED IS NOT UPLOADED TO OR
 MAINTAINED IN THE  DATABANK.
 § 245.50 CERTIFICATES OF COMPLIANCE; READINESS FOR TRIAL.
   1. BY THE PROSECUTION. WHEN THE PROSECUTION HAS PROVIDED THE DISCOVERY
 REQUIRED BY SUBDIVISION ONE OF SECTION 245.20 OF  THIS  ARTICLE,  EXCEPT
 FOR  ANY  ITEMS OR INFORMATION THAT ARE THE SUBJECT OF AN ORDER PURSUANT
 TO SECTION 245.70 OF THIS ARTICLE, IT SHALL SERVE UPON THE DEFENDANT AND
 FILE WITH THE COURT A CERTIFICATE  OF  COMPLIANCE.  THE  CERTIFICATE  OF
 COMPLIANCE  SHALL  STATE THAT, AFTER EXERCISING DUE DILIGENCE AND MAKING
 REASONABLE INQUIRIES TO ASCERTAIN THE EXISTENCE OF MATERIAL  AND  INFOR-
 MATION  SUBJECT  TO  DISCOVERY,  THE  PROSECUTOR  HAS DISCLOSED AND MADE
 AVAILABLE ALL KNOWN MATERIAL AND INFORMATION SUBJECT  TO  DISCOVERY.  IT
 SHALL  ALSO  IDENTIFY  THE  ITEMS  PROVIDED.  IF ADDITIONAL DISCOVERY IS
 SUBSEQUENTLY PROVIDED PRIOR TO TRIAL PURSUANT TO SECTION 245.60 OF  THIS
 ARTICLE,  A  SUPPLEMENTAL CERTIFICATE SHALL BE SERVED UPON THE DEFENDANT
 AND FILED WITH THE COURT  IDENTIFYING THE ADDITIONAL MATERIAL AND INFOR-
 MATION PROVIDED. NO ADVERSE CONSEQUENCE TO THE PROSECUTION OR THE PROSE-
 CUTOR SHALL RESULT FROM THE FILING OF A  CERTIFICATE  OF  COMPLIANCE  IN
 GOOD   FAITH; BUT THE COURT MAY GRANT A REMEDY OR SANCTION FOR A DISCOV-
 ERY VIOLATION AS PROVIDED IN SECTION 245.80 OF THIS ARTICLE.
   2. BY THE DEFENDANT. WHEN THE DEFENDANT  HAS  PROVIDED  ALL  DISCOVERY
 REQUIRED  BY  SUBDIVISION FOUR OF SECTION 245.20 OF THIS ARTICLE, EXCEPT
 FOR ANY ITEMS OR INFORMATION THAT ARE THE SUBJECT OF AN  ORDER  PURSUANT
 TO SECTION 245.70 OF THIS ARTICLE, COUNSEL FOR THE DEFENDANT SHALL SERVE

 S. 1509--C                         144                        A. 2009--C
 
 UPON  THE  PROSECUTION  AND FILE WITH THE COURT A CERTIFICATE OF COMPLI-
 ANCE.  THE CERTIFICATE SHALL STATE THAT, AFTER EXERCISING DUE  DILIGENCE
 AND  MAKING  REASONABLE INQUIRIES TO ASCERTAIN THE EXISTENCE OF MATERIAL
 AND  INFORMATION  SUBJECT  TO  DISCOVERY,  COUNSEL FOR THE DEFENDANT HAS
 DISCLOSED AND MADE AVAILABLE ALL KNOWN MATERIAL AND INFORMATION  SUBJECT
 TO  DISCOVERY.  IT SHALL ALSO IDENTIFY THE ITEMS PROVIDED. IF ADDITIONAL
 DISCOVERY IS SUBSEQUENTLY PROVIDED PRIOR TO TRIAL  PURSUANT  TO  SECTION
 245.60  OF THIS ARTICLE, A SUPPLEMENTAL CERTIFICATE SHALL BE SERVED UPON
 THE PROSECUTION AND FILED   WITH THE COURT  IDENTIFYING  THE  ADDITIONAL
 MATERIAL  AND  INFORMATION  PROVIDED.  NO  ADVERSE    CONSEQUENCE TO THE
 DEFENDANT OR COUNSEL FOR THE DEFENDANT SHALL RESULT FROM THE FILING OF A
 CERTIFICATE OF COMPLIANCE IN GOOD FAITH; BUT THE COURT MAY GRANT A REME-
 DY OR SANCTION FOR A DISCOVERY VIOLATION AS PROVIDED IN  SECTION  245.80
 OF THIS ARTICLE.
   3.  TRIAL  READINESS. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,
 ABSENT AN INDIVIDUALIZED FINDING OF  EXCEPTIONAL  CIRCUMSTANCES  BY  THE
 COURT  BEFORE  WHICH THE CHARGE IS PENDING, THE PROSECUTION SHALL NOT BE
 DEEMED READY FOR TRIAL FOR PURPOSES OF SECTION  30.30  OF  THIS  CHAPTER
 UNTIL  IT  HAS FILED A PROPER CERTIFICATE PURSUANT TO SUBDIVISION ONE OF
 THIS SECTION.
 § 245.55 FLOW OF INFORMATION.
   1. SUFFICIENT COMMUNICATION FOR COMPLIANCE. THE DISTRICT ATTORNEY  AND
 THE  ASSISTANT  RESPONSIBLE FOR THE CASE, OR, IF THE MATTER IS NOT BEING
 PROSECUTED BY THE DISTRICT ATTORNEY,  THE  PROSECUTING  AGENCY  AND  ITS
 ASSIGNED  REPRESENTATIVE, SHALL ENDEAVOR TO ENSURE THAT A FLOW OF INFOR-
 MATION IS MAINTAINED BETWEEN THE POLICE AND OTHER INVESTIGATIVE  PERSON-
 NEL  AND  HIS  OR  HER  OFFICE  SUFFICIENT  TO  PLACE  WITHIN HIS OR HER
 POSSESSION OR CONTROL ALL MATERIAL  AND  INFORMATION  PERTINENT  TO  THE
 DEFENDANT AND THE OFFENSE OR OFFENSES CHARGED, INCLUDING, BUT NOT LIMIT-
 ED  TO,  ANY EVIDENCE OR INFORMATION DISCOVERABLE UNDER PARAGRAPH (K) OF
 SUBDIVISION ONE OF SECTION 245.20 OF THIS ARTICLE.
   2. PROVISION OF LAW ENFORCEMENT AGENCY FILES. ABSENT A COURT ORDER  OR
 A  REQUIREMENT THAT DEFENSE COUNSEL OBTAIN A SECURITY CLEARANCE MANDATED
 BY LAW OR AUTHORIZED GOVERNMENT REGULATION, UPON REQUEST BY  THE  PROSE-
 CUTION,  EACH NEW YORK STATE AND LOCAL LAW ENFORCEMENT AGENCY SHALL MAKE
 AVAILABLE TO THE PROSECUTION A COMPLETE COPY OF ITS COMPLETE RECORDS AND
 FILES RELATED TO THE INVESTIGATION OF THE CASE OR THE PROSECUTION OF THE
 DEFENDANT FOR COMPLIANCE WITH THIS ARTICLE.
   3.  911  TELEPHONE  CALL  AND  POLICE  RADIO  TRANSMISSION  ELECTRONIC
 RECORDINGS,   POLICE  WORN  BODY  CAMERA  RECORDINGS  AND  OTHER  POLICE
 RECORDINGS.  (A) WHENEVER AN ELECTRONIC RECORDING  OF  A  911  TELEPHONE
 CALL  OR  A  POLICE  RADIO TRANSMISSION OR VIDEO OR AUDIO FOOTAGE FROM A
 POLICE BODY-WORN CAMERA OR OTHER POLICE RECORDING WAS MADE  OR  RECEIVED
 IN   CONNECTION WITH THE INVESTIGATION OF AN APPARENT CRIMINAL INCIDENT,
 THE ARRESTING OFFICER OR LEAD  DETECTIVE SHALL EXPEDITIOUSLY NOTIFY  THE
 PROSECUTION  IN  WRITING  UPON THE FILING OF AN ACCUSATORY INSTRUMENT OF
 THE EXISTENCE OF ALL SUCH KNOWN RECORDINGS. THE PROSECUTION SHALL  EXPE-
 DITIOUSLY  TAKE  WHATEVER  REASONABLE STEPS ARE NECESSARY TO ENSURE THAT
 ALL KNOWN ELECTRONIC RECORDINGS OF 911  TELEPHONE  CALLS,  POLICE  RADIO
 TRANSMISSIONS  AND  VIDEO  AND AUDIO FOOTAGE AND OTHER POLICE RECORDINGS
 MADE OR AVAILABLE IN CONNECTION WITH THE CASE ARE   PRESERVED. UPON  THE
 DEFENDANT'S  TIMELY  REQUEST  AND  DESIGNATION  OF A SPECIFIC ELECTRONIC
 RECORDING OF A 911 TELEPHONE CALL, THE PROSECUTION  SHALL  ALSO    EXPE-
 DITIOUSLY TAKE WHATEVER REASONABLE STEPS ARE NECESSARY TO ENSURE THAT IT
 IS PRESERVED.

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   (B)  IF THE PROSECUTION FAILS TO DISCLOSE SUCH AN ELECTRONIC RECORDING
 TO THE DEFENDANT PURSUANT TO PARAGRAPH (E), (G) OR  (K)  OF  SUBDIVISION
 ONE  OF  SECTION  245.20 OF THIS ARTICLE DUE TO A FAILURE TO COMPLY WITH
 THIS OBLIGATION BY POLICE OFFICERS OR OTHER LAW  ENFORCEMENT  OR  PROSE-
 CUTION PERSONNEL, THE COURT UPON MOTION OF THE DEFENDANT SHALL IMPOSE AN
 APPROPRIATE  REMEDY OR SANCTION PURSUANT TO SECTION 245.80 OF THIS ARTI-
 CLE.
 § 245.60 CONTINUING DUTY TO DISCLOSE.
   IF EITHER THE PROSECUTION OR  THE  DEFENDANT  SUBSEQUENTLY  LEARNS  OF
 ADDITIONAL MATERIAL OR INFORMATION WHICH IT WOULD HAVE BEEN UNDER A DUTY
 TO  DISCLOSE  PURSUANT TO ANY PROVISIONS OF THIS ARTICLE HAD IT KNOWN OF
 IT AT THE TIME OF A PREVIOUS DISCOVERY OBLIGATION OR DISCOVERY ORDER, IT
 SHALL EXPEDITIOUSLY NOTIFY THE OTHER PARTY AND DISCLOSE  THE  ADDITIONAL
 MATERIAL  AND  INFORMATION  AS REQUIRED FOR INITIAL DISCOVERY UNDER THIS
 ARTICLE. THIS SECTION ALSO REQUIRES EXPEDITIOUS DISCLOSURE BY THE PROSE-
 CUTION OF MATERIAL OR INFORMATION THAT BECAME RELEVANT TO  THE  CASE  OR
 DISCOVERABLE  BASED  ON RECIPROCAL DISCOVERY RECEIVED FROM THE DEFENDANT
 PURSUANT TO SUBDIVISION FOUR OF SECTION 245.20 OF THIS ARTICLE.
 § 245.65 WORK PRODUCT.
   THIS ARTICLE DOES NOT AUTHORIZE DISCOVERY BY A PARTY OF THOSE PORTIONS
 OF RECORDS, REPORTS, CORRESPONDENCE, MEMORANDA, OR INTERNAL DOCUMENTS OF
 THE ADVERSE PARTY WHICH ARE ONLY THE LEGAL RESEARCH, OPINIONS,  THEORIES
 OR  CONCLUSIONS  OF  THE ADVERSE PARTY OR ITS ATTORNEY OR THE ATTORNEY'S
 AGENTS, OR OF STATEMENTS OF A DEFENDANT, WRITTEN OR RECORDED  OR  SUMMA-
 RIZED  IN ANY WRITING OR RECORDING, MADE TO THE ATTORNEY FOR THE DEFEND-
 ANT OR THE ATTORNEY'S AGENTS.
 § 245.70 PROTECTIVE ORDERS.
   1. ANY DISCOVERY SUBJECT TO PROTECTIVE ORDER. UPON A SHOWING  OF  GOOD
 CAUSE BY EITHER PARTY, THE COURT MAY AT ANY TIME ORDER THAT DISCOVERY OR
 INSPECTION  OF ANY KIND OF MATERIAL OR INFORMATION UNDER THIS ARTICLE BE
 DENIED, RESTRICTED, CONDITIONED OR DEFERRED, OR MAKE SUCH OTHER ORDER AS
 IS APPROPRIATE. THE COURT MAY IMPOSE AS A CONDITION ON  DISCOVERY  TO  A
 DEFENDANT THAT THE MATERIAL OR INFORMATION TO BE DISCOVERED BE AVAILABLE
 ONLY  TO COUNSEL FOR THE DEFENDANT; OR,  ALTERNATIVELY, THAT COUNSEL FOR
 THE DEFENDANT, AND PERSONS EMPLOYED BY THE ATTORNEY OR APPOINTED BY  THE
 COURT  TO  ASSIST  IN  THE  PREPARATION  OF  A DEFENDANT'S CASE, MAY NOT
 DISCLOSE PHYSICAL COPIES OF THE DISCOVERABLE DOCUMENTS TO A DEFENDANT OR
 TO ANYONE ELSE, PROVIDED THAT  THE  PROSECUTION  AFFORDS  THE  DEFENDANT
 ACCESS  TO  INSPECT  REDACTED  COPIES OF THE DISCOVERABLE DOCUMENTS AT A
 SUPERVISED LOCATION THAT PROVIDES REGULAR AND REASONABLE HOURS FOR  SUCH
 ACCESS,  SUCH  AS  A  PROSECUTOR'S  OFFICE,  POLICE STATION, FACILITY OF
 DETENTION, OR COURT.  SHOULD THE COURT IMPOSE AS A CONDITION  THAT  SOME
 MATERIAL  OR INFORMATION BE AVAILABLE ONLY TO COUNSEL FOR THE DEFENDANT,
 THE COURT SHALL INFORM THE DEFENDANT ON  THE  RECORD  THAT  HIS  OR  HER
 ATTORNEY  IS  NOT PERMITTED BY LAW TO DISCLOSE SUCH MATERIAL OR INFORMA-
 TION TO THE DEFENDANT.  THE COURT MAY PERMIT A PARTY  SEEKING OR  OPPOS-
 ING  A  PROTECTIVE ORDER UNDER THIS SECTION, OR ANOTHER AFFECTED PERSON,
 TO SUBMIT PAPERS OR TESTIFY ON THE RECORD EX PARTE  OR  IN  CAMERA.  ANY
 SUCH  PAPERS  AND A TRANSCRIPT OF SUCH TESTIMONY MAY BE SEALED AND SHALL
 CONSTITUTE A PART OF THE RECORD ON APPEAL. THIS SECTION DOES NOT   ALTER
 THE  ALLOCATION  OF THE BURDEN OF PROOF WITH REGARD TO MATTERS AT ISSUE,
 INCLUDING PRIVILEGE.
   2. MODIFICATION OF TIME PERIODS FOR DISCOVERY. UPON MOTION OF A  PARTY
 IN AN INDIVIDUAL  CASE, THE COURT MAY ALTER THE TIME PERIODS FOR DISCOV-
 ERY IMPOSED BY THIS ARTICLE UPON A SHOWING OF GOOD CAUSE.

 S. 1509--C                         146                        A. 2009--C
 
   3.  PROMPT  HEARING.  UPON  REQUEST FOR A PROTECTIVE ORDER, UNLESS THE
 DEFENDANT VOLUNTARILY CONSENTS TO THE PEOPLE'S REQUEST FOR A  PROTECTIVE
 ORDER, THE COURT SHALL CONDUCT AN APPROPRIATE HEARING WITHIN THREE BUSI-
 NESS  DAYS TO DETERMINE WHETHER GOOD CAUSE HAS BEEN SHOWN AND WHEN PRAC-
 TICABLE  SHALL  RENDER A DECISION EXPEDITIOUSLY. ANY MATERIALS SUBMITTED
 AND A TRANSCRIPT OF THE PROCEEDING MAY BE SEALED AND SHALL CONSTITUTE  A
 PART OF THE RECORD ON APPEAL.
   4.  SHOWING  OF  GOOD  CAUSE.    IN  DETERMINING GOOD CAUSE UNDER THIS
 SECTION THE COURT MAY CONSIDER:  CONSTITUTIONAL RIGHTS  OR  LIMITATIONS;
 DANGER TO THE INTEGRITY OF PHYSICAL EVIDENCE OR THE SAFETY OF A WITNESS;
 RISK OF INTIMIDATION, ECONOMIC REPRISAL, BRIBERY, HARASSMENT OR UNJUSTI-
 FIED  ANNOYANCE OR EMBARRASSMENT TO ANY PERSON, AND THE NATURE, SEVERITY
 AND LIKELIHOOD OF THAT RISK; A RISK OF AN ADVERSE EFFECT UPON THE LEGIT-
 IMATE NEEDS OF LAW ENFORCEMENT, INCLUDING THE PROTECTION OF THE   CONFI-
 DENTIALITY  OF  INFORMANTS,  AND  THE NATURE, SEVERITY AND LIKELIHOOD OF
 THAT RISK; THE NATURE AND  CIRCUMSTANCES OF THE FACTUAL  ALLEGATIONS  IN
 THE CASE; WHETHER THE DEFENDANT HAS A HISTORY OF WITNESS INTIMIDATION OR
 TAMPERING  AND  THE  NATURE  OF  THAT  HISTORY; THE NATURE OF THE STATED
 REASONS IN SUPPORT OF A PROTECTIVE ORDER;  THE  NATURE  OF  THE  WITNESS
 IDENTIFYING  INFORMATION  THAT IS SOUGHT TO BE ADDRESSED BY A PROTECTIVE
 ORDER, INCLUDING THE OPTION OF EMPLOYING  ADEQUATE  ALTERNATIVE  CONTACT
 INFORMATION;  DANGER  TO  ANY  PERSON  STEMMING  FROM  FACTORS SUCH AS A
 DEFENDANT'S SUBSTANTIATED AFFILIATION  WITH  A  CRIMINAL  ENTERPRISE  AS
 DEFINED  IN  SUBDIVISION  THREE  OF SECTION 460.10 OF THE PENAL LAW; AND
 OTHER SIMILAR FACTORS FOUND TO OUTWEIGH THE USEFULNESS OF THE DISCOVERY.
   5. SUCCESSOR COUNSEL OR PRO SE DEFENDANT. IN CASES IN WHICH THE ATTOR-
 NEY-CLIENT  RELATIONSHIP IS TERMINATED PRIOR TO TRIAL  FOR  ANY  REASON,
 ANY MATERIAL OR INFORMATION DISCLOSED  SUBJECT TO A CONDITION THAT IT BE
 AVAILABLE ONLY TO COUNSEL FOR THE DEFENDANT, OR LIMITED IN DISSEMINATION
 BY  PROTECTIVE  ORDER  OR OTHERWISE, SHALL BE PROVIDED ONLY TO SUCCESSOR
 COUNSEL FOR THE DEFENDANT UNDER THE SAME CONDITION OR CONDITIONS  OR  BE
 RETURNED  TO  THE PROSECUTION, UNLESS THE COURT RULES OTHERWISE FOR GOOD
 CAUSE SHOWN OR THE PROSECUTOR GIVES WRITTEN CONSENT.  ANY  WORK  PRODUCT
 DERIVED  FROM  SUCH MATERIAL OR INFORMATION SHALL NOT BE PROVIDED TO THE
 DEFENDANT, UNLESS THE COURT RULES  OTHERWISE  OR  THE  PROSECUTOR  GIVES
 WRITTEN CONSENT. IF THE DEFENDANT IS ACTING AS HIS  OR HER OWN ATTORNEY,
 THE  COURT  MAY  REGULATE  THE  TIME,  PLACE AND MANNER OF ACCESS TO ANY
 DISCOVERABLE MATERIAL OR INFORMATION; AND IT MAY AS APPROPRIATE  APPOINT
 PERSONS  TO  ASSIST THE DEFENDANT IN THE INVESTIGATION OR PREPARATION OF
 THE CASE. UPON MOTION OR APPLICATION OF A DEFENDANT ACTING AS HIS OR HER
 OWN ATTORNEY, THE COURT MAY AT ANY TIME MODIFY OR VACATE  ANY  CONDITION
 OR  RESTRICTION  RELATING TO ACCESS TO DISCOVERABLE MATERIAL OR INFORMA-
 TION, FOR GOOD CAUSE  SHOWN.
   6. EXPEDITED REVIEW OF ADVERSE RULING. (A) A PARTY THAT HAS UNSUCCESS-
 FULLY SOUGHT, OR UNSUCCESSFULLY OPPOSED THE GRANTING  OF,  A  PROTECTIVE
 ORDER UNDER THIS SECTION RELATING TO THE NAME, ADDRESS, CONTACT INFORMA-
 TION  OR  STATEMENTS  OF  A  PERSON  MAY OBTAIN EXPEDITED REVIEW OF THAT
 RULING BY AN INDIVIDUAL JUSTICE OF THE INTERMEDIATE APPELLATE  COURT  TO
 WHICH  AN  APPEAL  FROM  A  JUDGMENT  OF CONVICTION IN THE CASE WOULD BE
 TAKEN.
   (B) SUCH REVIEW SHALL BE  SOUGHT  WITHIN  TWO  BUSINESS  DAYS  OF  THE
 ADVERSE  OR  PARTIALLY ADVERSE RULING, BY ORDER TO SHOW CAUSE FILED WITH
 THE INTERMEDIATE APPELLATE COURT. THE ORDER TO SHOW CAUSE SHALL IN ADDI-
 TION BE TIMELY SERVED ON THE LOWER COURT AND ON THE OPPOSING PARTY,  AND
 SHALL  BE  ACCOMPANIED  BY A SWORN AFFIRMATION STATING IN GOOD FAITH (I)
 THAT THE RULING AFFECTS  SUBSTANTIAL INTERESTS, AND (II)  THAT  DILIGENT

 S. 1509--C                         147                        A. 2009--C
 
 EFFORTS  TO  REACH  AN ACCOMMODATION OF THE UNDERLYING DISCOVERY DISPUTE
 WITH OPPOSING COUNSEL FAILED OR  THAT  NO  ACCOMMODATION  WAS  FEASIBLE;
 EXCEPT  THAT  SERVICE  ON  THE OPPOSING PARTY, AND A STATEMENT REGARDING
 EFFORTS  TO  REACH  AN ACCOMMODATION, ARE UNNECESSARY WHERE THE OPPOSING
 PARTY WAS NOT MADE AWARE OF THE APPLICATION FOR A PROTECTIVE  ORDER  AND
 GOOD  CAUSE  IS SHOWN FOR OMITTING SERVICE OF THE ORDER TO SHOW CAUSE ON
 THE OPPOSING PARTY. THE LOWER COURT'S ORDER SUBJECT TO REVIEW  SHALL  BE
 STAYED UNTIL THE APPELLATE JUSTICE RENDERS A DETERMINATION.
   (C)  THE  ASSIGNMENT OF THE INDIVIDUAL APPELLATE JUSTICE, AND THE MODE
 OF AND PROCEDURE FOR THE REVIEW, SHALL BE DETERMINED  BY  RULES  OF  THE
 INDIVIDUAL  APPELLATE  COURTS.  THE  APPELLATE  JUSTICE MAY CONSIDER ANY
 RELEVANT AND RELIABLE INFORMATION BEARING ON THE ISSUE, AND MAY DISPENSE
 WITH  WRITTEN BRIEFS OTHER THAN SUPPORTING AND OPPOSING MATERIALS PREVI-
 OUSLY SUBMITTED TO THE LOWER COURT. THE APPELLATE JUSTICE  MAY  DISPENSE
 WITH THE ISSUANCE OF A WRITTEN OPINION IN RENDERING HIS OR HER DECISION,
 AND WHEN PRACTICABLE SHALL RENDER DECISION AND ORDER EXPEDITIOUSLY. SUCH
 REVIEW, DECISION AND ORDER SHALL NOT AFFECT THE RIGHT OF A DEFENDANT, IN
 A SUBSEQUENT APPEAL FROM A JUDGMENT OF CONVICTION, TO CLAIM AS ERROR THE
 RULING REVIEWED.
   7. COMPLIANCE WITH PROTECTIVE ORDER. ANY PROTECTIVE ORDER ISSUED UNDER
 THIS  ARTICLE  IS  A MANDATE OF THE COURT FOR PURPOSES OF THE OFFENSE OF
 CRIMINAL CONTEMPT IN SUBDIVISION THREE OF SECTION 215.50  OF  THE  PENAL
 LAW.
 § 245.75 WAIVER OF DISCOVERY BY DEFENDANT.
   A  DEFENDANT  WHO  DOES  NOT SEEK DISCOVERY FROM THE PROSECUTION UNDER
 THIS ARTICLE SHALL SO   NOTIFY THE PROSECUTION  AND  THE  COURT  AT  THE
 DEFENDANT'S  ARRAIGNMENT  ON  AN INDICTMENT, SUPERIOR COURT INFORMATION,
 PROSECUTOR'S INFORMATION, INFORMATION,  OR  SIMPLIFIED  INFORMATION,  OR
 EXPEDITIOUSLY  THEREAFTER BUT BEFORE RECEIVING DISCOVERY FROM THE PROSE-
 CUTION PURSUANT TO  SUBDIVISION ONE OF SECTION 245.20 OF  THIS  ARTICLE,
 AND THE DEFENDANT NEED NOT PROVIDE DISCOVERY TO THE PROSECUTION PURSUANT
 TO  SUBDIVISION  FOUR OF SECTION 245.20 AND SECTION 245.60 OF THIS ARTI-
 CLE. A WAIVER SHALL BE IN WRITING, SIGNED FOR  THE  INDIVIDUAL  CASE  BY
 COUNSEL  FOR THE DEFENDANT AND FILED WITH THE COURT. SUCH A  WAIVER DOES
 NOT ALTER OR IN ANY WAY AFFECT THE PROCEDURES, OBLIGATIONS OR RIGHTS SET
 FORTH IN SECTIONS 250.10, 250.20 AND 250.30 OF THIS TITLE, OR  OTHERWISE
 ESTABLISHED  OR  REQUIRED  BY  LAW.  THE PROSECUTION MAY NOT CONDITION A
 GUILTY PLEA OFFER ON THE DEFENSE'S EXECUTION  OF  A  WAIVER  UNDER  THIS
 SECTION.
 § 245.80 REMEDIES OR SANCTIONS FOR NON-COMPLIANCE.
   1.  NEED  FOR  REMEDY OR SANCTION. (A) WHEN MATERIAL OR INFORMATION IS
 DISCOVERABLE UNDER THIS ARTICLE BUT IS DISCLOSED  BELATEDLY,  THE  COURT
 SHALL  IMPOSE AN APPROPRIATE REMEDY OR SANCTION IF THE PARTY ENTITLED TO
 DISCLOSURE SHOWS THAT IT WAS PREJUDICED.  REGARDLESS  OF  A  SHOWING  OF
 PREJUDICE  THE  PARTY  ENTITLED  TO DISCLOSURE SHALL BE GIVEN REASONABLE
 TIME TO PREPARE AND RESPOND TO THE NEW MATERIAL.
   (B) WHEN MATERIAL OR INFORMATION IS DISCOVERABLE  UNDER  THIS  ARTICLE
 BUT CANNOT BE DISCLOSED BECAUSE IT HAS BEEN LOST OR DESTROYED, THE COURT
 SHALL  IMPOSE AN APPROPRIATE REMEDY OR SANCTION IF THE PARTY ENTITLED TO
 DISCLOSURE SHOWS THAT THE LOST OR DESTROYED MATERIAL MAY HAVE  CONTAINED
 SOME  INFORMATION  RELEVANT TO A CONTESTED ISSUE. THE APPROPRIATE REMEDY
 OR SANCTION IS  THAT WHICH IS PROPORTIONATE TO  THE  POTENTIAL  WAYS  IN
 WHICH THE LOST OR DESTROYED MATERIAL  REASONABLY COULD HAVE BEEN HELPFUL
 TO THE PARTY ENTITLED TO DISCLOSURE.
   2.  AVAILABLE  REMEDIES  OR  SANCTIONS. FOR FAILURE TO COMPLY WITH ANY
 DISCOVERY ORDER IMPOSED OR ISSUED PURSUANT TO THIS  ARTICLE,  THE  COURT

 S. 1509--C                         148                        A. 2009--C
 
 MAY  MAKE A FURTHER ORDER FOR DISCOVERY, GRANT A CONTINUANCE, ORDER THAT
 A HEARING BE REOPENED, ORDER THAT  A  WITNESS  BE  CALLED  OR  RECALLED,
 INSTRUCT  THE  JURY  THAT IT MAY DRAW AN ADVERSE INFERENCE REGARDING THE
 NON-COMPLIANCE, PRECLUDE OR STRIKE A WITNESS'S TESTIMONY OR A PORTION OF
 A  WITNESS'S  TESTIMONY,  ADMIT OR EXCLUDE EVIDENCE,   ORDER A MISTRIAL,
 ORDER THE DISMISSAL OF ALL OR SOME OF THE CHARGES, OR  MAKE  SUCH  OTHER
 ORDER AS IT DEEMS JUST UNDER THE CIRCUMSTANCES; EXCEPT THAT ANY SANCTION
 AGAINST  THE DEFENDANT SHALL COMPORT WITH THE DEFENDANT'S CONSTITUTIONAL
 RIGHT TO PRESENT A DEFENSE, AND  PRECLUDING  A  DEFENSE  WITNESS    FROM
 TESTIFYING SHALL BE PERMISSIBLE ONLY UPON A FINDING THAT THE DEFENDANT'S
 FAILURE  TO  COMPLY   WITH THE DISCOVERY OBLIGATION OR ORDER WAS WILLFUL
 AND MOTIVATED BY A DESIRE TO OBTAIN A TACTICAL  ADVANTAGE.
   3. CONSEQUENCES OF NON-DISCLOSURE OF STATEMENT  OF  TESTIFYING  PROSE-
 CUTION WITNESS. THE FAILURE OF THE PROSECUTOR OR ANY AGENT OF THE PROSE-
 CUTOR  TO  DISCLOSE  ANY  WRITTEN OR RECORDED STATEMENT MADE BY A PROSE-
 CUTION WITNESS WHICH RELATES TO THE  SUBJECT  MATTER  OF  THE  WITNESS'S
 TESTIMONY  SHALL  NOT  CONSTITUTE  GROUNDS  FOR ANY COURT TO ORDER A NEW
 PRE-TRIAL HEARING OR SET ASIDE  A  CONVICTION,  OR  REVERSE,  MODIFY  OR
 VACATE  A  JUDGMENT  OF  CONVICTION,  IN THE ABSENCE OF A SHOWING BY THE
 DEFENDANT THAT THERE IS A REASONABLE POSSIBILITY THAT THE NON-DISCLOSURE
 MATERIALLY CONTRIBUTED TO THE RESULT OF THE TRIAL OR  OTHER  PROCEEDING;
 PROVIDED,  HOWEVER,  THAT NOTHING IN THIS  SECTION SHALL AFFECT OR LIMIT
 ANY RIGHT THE DEFENDANT MAY HAVE TO A REOPENED  PRE-TRIAL  HEARING  WHEN
 SUCH STATEMENTS WERE DISCLOSED BEFORE THE CLOSE OF EVIDENCE AT TRIAL.
 § 245.85 ADMISSIBILITY OF DISCOVERY.
   THE  FACT  THAT  A PARTY HAS INDICATED DURING THE DISCOVERY PROCESS AN
 INTENTION TO OFFER SPECIFIED EVIDENCE OR TO CALL A SPECIFIED WITNESS  IS
 NOT  ADMISSIBLE  IN EVIDENCE OR GROUNDS FOR ADVERSE COMMENT AT A HEARING
 OR A TRIAL.
   § 3. Subdivision 3 of section 610.20 of the criminal procedure law  is
 amended and a new subdivision 4 is added to read as follows:
   3.  An attorney for a defendant in a criminal action or proceeding, as
 an  officer  of  a  criminal  court, may issue a subpoena of such court,
 subscribed by himself, for the attendance in such court of  any  witness
 whom the defendant is entitled to call in such action or proceeding.  An
 attorney  for  a  defendant  may not issue a subpoena duces tecum of the
 court directed to any department, bureau or agency of the state or of  a
 political subdivision thereof, or to any officer or representative ther-
 eof,  UNLESS THE SUBPOENA IS INDORSED BY THE COURT AND PROVIDES AT LEAST
 THREE DAYS FOR THE PRODUCTION OF THE REQUESTED MATERIALS. IN THE CASE OF
 AN EMERGENCY, THE  COURT  MAY  BY  ORDER  DISPENSE  WITH  THE  THREE-DAY
 PRODUCTION  PERIOD. [Such a subpoena duces tecum may be issued in behalf
 of a defendant upon order of a court pursuant to the rules applicable to
 civil cases as provided in section twenty-three  hundred  seven  of  the
 civil practice law and rules.]
   4.  THE SHOWING REQUIRED TO SUSTAIN ANY SUBPOENA UNDER THIS SECTION IS
 THAT THE  TESTIMONY OR EVIDENCE SOUGHT IS REASONABLY LIKELY TO BE  RELE-
 VANT AND MATERIAL TO THE  PROCEEDINGS, AND THE SUBPOENA IS NOT OVERBROAD
 OR UNREASONABLY BURDENSOME.
   §  4. Subdivision 9 of section 65.20 of the criminal procedure law, as
 added by chapter 505 of the laws of 1985 and as  renumbered  by  chapter
 548 of the laws of 2007, is amended to read as follows:
   9.  (a) Prior to the commencement of the hearing conducted pursuant to
 subdivision [five] SIX of this section,  the  district  attorney  shall,
 subject to a protective order, comply with the provisions of subdivision
 one  of  section  [240.45]  245.20  of  this chapter as they concern any

 S. 1509--C                         149                        A. 2009--C
 
 witness whom the district attorney intends to call at  the  hearing  and
 the child witness.
   (b)  Before  a  defendant  calls  a witness at such hearing, he or she
 must, subject to a protective  order,  comply  with  the  provisions  of
 subdivision  [two]  FOUR  of  section [240.45] 245.20 of this chapter as
 they concern all the witnesses the defendant intends  to  call  at  such
 hearing.
   § 5. Subdivision 5 of section 200.95 of the criminal procedure law, as
 added by chapter 558 of the laws of 1982, is amended to read as follows:
   5.  Court  ordered bill of particulars.  Where a prosecutor has timely
 served a written refusal pursuant to subdivision four  of  this  section
 and upon motion, made in writing, of a defendant, who has made a request
 for  a  bill of particulars and whose request has not been complied with
 in whole or in part, the court must, to the extent a protective order is
 not warranted, order the prosecutor to comply with the request if it  is
 satisfied that the items of factual information requested are authorized
 to  be  included  in a bill of particulars, and that such information is
 necessary to enable the defendant adequately to prepare or  conduct  his
 defense  and,  if  the request was untimely, a finding of good cause for
 the delay. Where a prosecutor has not timely served  a  written  refusal
 pursuant  to  subdivision four of this section the court must, unless it
 is satisfied that the people have shown good cause  why  such  an  order
 should  not be issued, issue an order requiring the prosecutor to comply
 or providing for any other  order  authorized  by  [subdivision  one  of
 section 240.70] SECTION 245.80 OF THIS PART.
   §  6. Paragraph (c) of subdivision 1 of section 255.10 of the criminal
 procedure law, as added by chapter 763 of the laws of 1974,  is  amended
 to read as follows:
   (c)  granting discovery pursuant to article [240] 245; or
   § 7. Subdivision 1 of section 255.20 of the criminal procedure law, as
 amended  by  chapter  369  of  the  laws  of 1982, is amended to read as
 follows:
   1. Except as otherwise expressly provided by law, whether the  defend-
 ant is represented by counsel or elects to proceed pro se, all pre-trial
 motions  shall  be served or filed within forty-five days after arraign-
 ment and before commencement of trial, or within such additional time as
 the court may fix upon application of the defendant made prior to  entry
 of  judgment.  In  an action in which EITHER (A) MATERIAL OR INFORMATION
 HAS BEEN DISCLOSED PURSUANT TO PARAGRAPH (M) OR (N) OF  SUBDIVISION  ONE
 OF SECTION 245.20 OF THIS TITLE, (B) an eavesdropping warrant and appli-
 cation  have  been furnished pursuant to section 700.70 OF THIS CHAPTER,
 or (C) a notice of intention  to  introduce  evidence  has  been  served
 pursuant  to  section  710.30  OF  THIS  CHAPTER,  such  period shall be
 extended until forty-five days after the last date of such service.   If
 the  defendant  is  not  represented  by  counsel  and  has requested an
 adjournment to obtain counsel or to have counsel assigned,  such  forty-
 five  day period shall commence on the date counsel initially appears on
 defendant's behalf.
   § 8. Section 340.30 of the criminal procedure law is amended  to  read
 as follows:
 § 340.30 Pre-trial discovery and notices of defenses.
   The provisions of article two hundred [forty] FORTY-FIVE OF THIS PART,
 concerning  pre-trial  discovery  by  a  defendant under indictment in a
 superior court, and article two hundred fifty OF THIS  PART,  concerning
 pre-trial  notice  to  the  people  by a defendant under indictment in a
 superior court who intends to advance a trial defense of mental  disease

 S. 1509--C                         150                        A. 2009--C
 
 or  defect  or  of  alibi, apply to a prosecution of an information in a
 local criminal court.
   §  9.  Subdivision 14 of section 400.27 of the criminal procedure law,
 as added by chapter 1 of the  laws  of  1995,  is  amended  to  read  as
 follows:
   14.  (a)  At a reasonable time prior to the sentencing proceeding or a
 mental retardation hearing:
   (i) the prosecutor shall, unless previously disclosed and subject to a
 protective order, make available to the  defendant  the  statements  and
 information  specified  in subdivision one of section [240.45] 245.20 OF
 THIS PART and make available for inspection, photographing,  copying  or
 testing  the  property  specified in subdivision one of section [240.20]
 245.20; and
   (ii) the defendant shall, unless previously disclosed and subject to a
 protective order, make available to the prosecution the  statements  and
 information  specified  in  subdivision  [two]  FOUR of section [240.45]
 245.20 and make available  for  inspection,  photographing,  copying  or
 testing,  subject  to constitutional limitations, the reports, documents
 and other property specified [in subdivision one of section  240.30]  IN
 SECTION 245.20 OF THIS PART.
   (b) Where a party refuses to make disclosure pursuant to this section,
 the provisions of section [240.35, subdivision one of section 240.40 and
 section 240.50] 245.70, 245.75 AND/OR 245.80 OF THIS PART shall apply.
   (c)  If,  after  complying  with  the provisions of this section or an
 order pursuant thereto, a party finds either before or during a sentenc-
 ing  proceeding  or  mental  retardation  hearing,  additional  material
 subject to discovery or covered by court order, the party shall promptly
 make disclosure or apply for a protective order.
   (d)  If  the court finds that a party has failed to comply with any of
 the provisions of this section, the court may [enter] EMPLOY any of  the
 [orders]  REMEDIES  OR SANCTIONS specified in subdivision one of section
 [240.70] 245.80 OF THIS PART.
   § 10. The opening paragraph of  paragraph  (b)  of  subdivision  1  of
 section  440.30 of the criminal procedure law, as added by chapter 19 of
 the laws of 2012, is amended to read as follows:
   In conjunction with the filing or consideration of a motion to  vacate
 a  judgment  pursuant  to  section 440.10 of this article by a defendant
 convicted after a trial, in cases where the court has ordered an eviden-
 tiary hearing upon such motion, the court  may  order  that  the  people
 produce or make available for inspection property[, as defined in subdi-
 vision  three of section 240.10 of this part,] in its possession, custo-
 dy, or control that was secured in connection with the investigation  or
 prosecution  of the defendant upon credible allegations by the defendant
 and a finding by the court that such property,  if  obtained,  would  be
 probative to the determination of defendant's actual innocence, and that
 the  request is reasonable. The court shall deny or limit such a request
 upon a finding that such a  request,  if  granted,  would  threaten  the
 integrity  or chain of custody of property or the integrity of the proc-
 esses or functions of a laboratory conducting DNA testing, pose  a  risk
 of  harm,  intimidation, embarrassment, reprisal, or other substantially
 negative consequences to any person, undermine the proper  functions  of
 law  enforcement  including the confidentiality of informants, or on the
 basis of any other factor identified by the court in  the  interests  of
 justice  or public safety. The court shall further ensure that any prop-
 erty produced pursuant to this paragraph  is  subject  to  a  protective

 S. 1509--C                         151                        A. 2009--C

 order, where appropriate. The court shall deny any request made pursuant
 to this paragraph where:
   §  11.  Subdivision 10 of section 450.10 of the penal law, as added by
 chapter 795 of the laws of 1984, is amended to read as follows:
   10. Where there has been a failure to comply with  the  provisions  of
 this  section,  and  where the district attorney does not demonstrate to
 the satisfaction of the court that  such  failure  has  not  caused  the
 defendant  prejudice,  the  court  shall  instruct  the jury that it may
 consider such failure  in  determining  the  weight  to  be  given  such
 evidence and may also impose any other sanction set forth in subdivision
 one  of section [240.70] 245.80 of the criminal procedure law; provided,
 however, that unless the defendant has convinced  the  court  that  such
 failure has caused him undue prejudice, the court shall not preclude the
 district  attorney  from  introducing into evidence the property, photo-
 graphs, photocopies, or other reproductions of the  property  or,  where
 appropriate,  testimony  concerning  its value and condition, where such
 evidence is otherwise properly authenticated and  admissible  under  the
 rules  of  evidence.  Failure  to  comply  with  any  one or more of the
 provisions of this section shall not for that reason  alone  be  grounds
 for dismissal of the accusatory instrument.
   §  12. Section 460.80 of the penal law, as added by chapter 516 of the
 laws of 1986, is amended to read as follows:
 § 460.80 Court ordered disclosure.
   Notwithstanding the provisions of article two hundred  [forty]  FORTY-
 FIVE  of  the criminal procedure law, when forfeiture is sought pursuant
 to section 460.30 of this [chapter] ARTICLE, the court may order discov-
 ery of any property  not  otherwise  disclosed  which  is  material  and
 reasonably  necessary  for  preparation by the defendant with respect to
 the forfeiture proceeding pursuant to such section. The court may  issue
 a protective order denying, limiting, conditioning, delaying or regulat-
 ing  such discovery where a danger to the integrity of physical evidence
 or a substantial risk of physical harm, intimidation, economic reprisal,
 bribery or unjustified annoyance or embarrassment to any  person  or  an
 adverse  effect  upon the legitimate needs of law enforcement, including
 the protection of the confidentiality of informants, or any other factor
 or set of factors outweighs the usefulness of the discovery.
   § 13. Subdivision 5 of section 480.10 of the penal law,  as  added  by
 chapter 655 of the laws of 1990, is amended to read as follows:
   5.  In  addition  to  information required to be disclosed pursuant to
 article two hundred [forty] FORTY-FIVE of the  criminal  procedure  law,
 when  forfeiture  is  sought pursuant to this article, and following the
 defendant's arraignment on the special forfeiture information, the court
 shall order discovery of any information not otherwise  disclosed  which
 is  material  and  reasonably necessary for preparation by the defendant
 with respect to a forfeiture proceeding brought pursuant to  this  arti-
 cle.  Such  material  shall  include  those  portions  of the grand jury
 minutes and such other information which pertain solely to  the  special
 forfeiture  information and shall not include information which pertains
 to the criminal charges. Upon application of the prosecutor,  the  court
 may  issue a protective order pursuant to section [240.40] 245.70 of the
 criminal procedure law with respect to any information  required  to  be
 disclosed pursuant to this subdivision.
   §  14.  This act shall take effect January 1, 2020; provided, however,
 the amendments to section 65.20 of the criminal procedure  law  made  by
 section four of this act shall not affect the repeal of such section and
 shall be deemed repealed therewith.

 S. 1509--C                         152                        A. 2009--C
 
                                 PART MMM
 
   Section  1. Paragraphs (d) and (e) of subdivision 1-a of section 70.15
 of the penal law, as added by section 2 of part OO of a chapter  of  the
 laws  of  2019  amending  the  penal  law and the criminal procedure law
 relating to reducing certain sentences of imprisonment for  misdemeanors
 to  three  hundred  sixty-four  days,  as  proposed  in legislative bill
 numbers S.1505-C and A.2005-C, are amended to read as follows:
   (d) Any sentence for a misdemeanor conviction  imposed  prior  to  the
 effective  date  of  this  subdivision  that  is  other  than a definite
 sentence of imprisonment of one year may be set aside,  upon  motion  of
 the  defendant  under section 440.20 of the criminal procedure law based
 on a showing that the judgment and sentence under the law in  effect  at
 the  time  of  conviction  imposed  prior  to the effective date of this
 subdivision is likely to result in [severe] collateral consequences,  in
 order to permit the court to resentence the defendant in accordance with
 the amendatory provisions of this subdivision.
   (e) Resentence by operation of law is without prejudice to an individ-
 ual  seeking  further relief pursuant to paragraph [(i)] (J) of subdivi-
 sion one of section 440.10 of the criminal  procedure  law.  Nothing  in
 this  section is intended to diminish or abrogate any rights or remedies
 otherwise available to the individual.
   § 2. Paragraph (j) of subdivision 1 of section 440.10 of the  criminal
 procedure law, as added by section 3 of part OO of a chapter of the laws
 of  2019  amending the penal law and the criminal procedure law relating
 to reducing certain sentences of imprisonment for misdemeanors to  three
 hundred  sixty-four  days,  as  proposed  in  legislative  bill  numbers
 S.1505-C and A.2005-C, is amended to read as follows:
   (j) The judgment is a conviction for a class A or unclassified  misde-
 meanor  entered prior to the effective date of this paragraph and satis-
 fies the ground prescribed in paragraph (h) of this subdivision.   There
 shall  be  a rebuttable presumption that a conviction by plea to such an
 offense was not knowing, voluntary and intelligent, based on [severe or]
 ongoing collateral consequences, including  potential  or  actual  immi-
 gration consequences, and there shall be a rebuttable presumption that a
 conviction  by  verdict  constitutes  cruel and unusual punishment under
 section five of article one of the  state  constitution  based  on  such
 consequences.
   §  3.  This  act  shall  take  effect on the same date and in the same
 manner as part OO of a chapter of the laws of 2019  amending  the  penal
 law  and  the  criminal  procedure  law  relating  to  reducing  certain
 sentences of imprisonment for misdemeanors to three  hundred  sixty-four
 days,  as  proposed  in  legislative bill numbers S.1505-C and A.2005-C,
 takes effect.
 
                                 PART NNN
 
   Section 1. Section 13 of part A of chapter 97 of  the  laws  of  2011,
 amending  the  general  municipal  law and the education law relating to
 establishing limits  upon  school  district  and  local  government  tax
 levies,  as amended by section 18 of part A of chapter 20 of the laws of
 2015, is amended to read as follows:
   § 13. This act shall take effect immediately[; provided, however, that
 sections two through eleven of this act shall take effect July  1,  2011
 and shall first apply to school district budgets and the budget adoption
 process  for  the  2012-13  school  year; and shall continue to apply to

 S. 1509--C                         153                        A. 2009--C

 school district budgets and the budget adoption process for  any  school
 year  beginning in any calendar year during which this act is in effect;
 provided further, that if section 26 of part A of chapter 58 of the laws
 of  2011 shall not have taken effect on or before such date then section
 ten of this act shall take effect on the  same  date  and  in  the  same
 manner  as  such  chapter  of  the  laws of 2011, takes effect; provided
 further, that section one of this act shall first apply to the  levy  of
 taxes  by  local governments for the fiscal year that begins in 2012 and
 shall continue to apply to the levy of taxes by  local  governments  for
 any  fiscal year beginning in any calendar year during which this act is
 in effect; provided, further, that this act shall remain in  full  force
 and  effect  at  a  minimum  until and including June 15, 2020 and shall
 remain in effect thereafter only so long as the public emergency requir-
 ing the regulation and control of residential rents  and  evictions  and
 all  such  laws  providing  for  such regulation and control continue as
 provided in subdivision 3 of section  1  of  the  local  emergency  rent
 control  act,  sections  26-501, 26-502 and 26-520 of the administrative
 code of the city of New York, section 17 of chapter 576 of the  laws  of
 1974  and  subdivision 2 of section 1 of chapter 274 of the laws of 1946
 constituting the emergency housing rent control law, and section  10  of
 chapter  555  of the laws of 1982, amending the general business law and
 the administrative code of the city of New York relating to  conversions
 of  residential property  to cooperative or condominium ownership in the
 city of New York as such laws are continued by chapter 93 of the laws of
 2011 and as such sections are amended from time to time].
   § 2. This act shall take effect immediately.
 
                                 PART OOO
 
   Section 1. Subdivision (a) of section 1402 of the tax law, as  amended
 by chapter 170 of the laws of 1994, is amended to read as follows:
   (a)  A  tax  is  hereby imposed on each conveyance of real property or
 interest therein when the consideration exceeds five hundred dollars, at
 the rate of two dollars for each five hundred dollars or fractional part
 thereof; provided, however, that with respect to (A) a conveyance  of  a
 one, two or three-family house and an individual residential condominium
 unit,  or interests therein; and (B) conveyances where the consideration
 is less than five hundred thousand dollars, the  consideration  for  the
 interest  conveyed  shall  exclude  the value of any lien or encumbrance
 remaining thereon at the time of conveyance. THE RATE OF THIS TAX  SHALL
 BE:  (1)  TWO  DOLLARS  FOR EACH FIVE HUNDRED DOLLARS OR FRACTIONAL PART
 THEREOF ON ALL CONVEYANCES OF REAL PROPERTY OR  INTEREST  THEREIN;  PLUS
 (2) AN ADDITIONAL ONE DOLLAR AND TWENTY-FIVE CENTS FOR EACH FIVE HUNDRED
 DOLLARS  OR  FRACTIONAL PART THEREOF OF CONSIDERATION ON EACH CONVEYANCE
 OF REAL PROPERTY OR INTEREST THEREIN  WITHIN  ANY  CITY  IN  THIS  STATE
 HAVING  A  POPULATION  OF ONE MILLION OR MORE (I) WHEN THE CONSIDERATION
 FOR THE ENTIRE CONVEYANCE OF RESIDENTIAL REAL PROPERTY IS THREE  MILLION
 DOLLARS  OR MORE, AND (II) WHEN THE CONSIDERATION FOR THE ENTIRE CONVEY-
 ANCE OF ANY OTHER PROPERTY IS TWO MILLION DOLLARS OR MORE. FOR  PURPOSES
 OF  THIS  SECTION,  RESIDENTIAL REAL PROPERTY SHALL INCLUDE ANY PREMISES
 THAT IS OR MAY BE USED IN WHOLE OR IN PART AS A PERSONAL RESIDENCE,  AND
 SHALL INCLUDE A ONE, TWO, OR THREE-FAMILY HOUSE, AN INDIVIDUAL CONDOMIN-
 IUM UNIT, OR A COOPERATIVE APARTMENT UNIT.
   §  2.  Subdivision  (b)  of section 1402-a of the tax law, as added by
 chapter 61 of the laws of 1989, is amended to read as follows:

 S. 1509--C                         154                        A. 2009--C
 
   (b) Notwithstanding the provisions of subdivision (a) of section four-
 teen hundred four of this article, the additional tax  imposed  by  this
 section  shall be paid by the grantee.  If the grantee HAS FAILED TO PAY
 THE TAX IMPOSED BY THIS ARTICLE AT THE TIME REQUIRED BY SECTION FOURTEEN
 HUNDRED  TEN  OF THIS ARTICLE OR IF THE GRANTEE is exempt from such tax,
 the grantor shall have the duty to pay the tax. WHERE  THE  GRANTOR  HAS
 THE  DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY, SUCH TAX
 SHALL BE THE JOINT AND SEVERAL LIABILITY OF THE GRANTOR AND THE GRANTEE.
   § 3. The tax law is amended by adding a new section 1402-b to read  as
 follows:
   §  1402-B.  SUPPLEMENTAL  TAX  IN  CITIES  HAVING  A POPULATION OF ONE
 MILLION OR MORE. (A) IN ADDITION TO THE TAXES IMPOSED BY SECTIONS  FOUR-
 TEEN  HUNDRED  TWO  AND FOURTEEN HUNDRED TWO-A OF THIS ARTICLE, A TAX IS
 HEREBY IMPOSED ON EACH CONVEYANCE OF RESIDENTIAL REAL PROPERTY OR INTER-
 EST THEREIN WITHIN ANY CITY IN THIS STATE HAVING  A  POPULATION  OF  ONE
 MILLION OR MORE WHEN THE CONSIDERATION FOR THE CONVEYANCE IS TWO MILLION
 DOLLARS OR MORE. FOR PURPOSES OF THIS SECTION, RESIDENTIAL REAL PROPERTY
 SHALL INCLUDE ANY PREMISES THAT IS OR MAY BE USED IN WHOLE OR IN PART AS
 A  PERSONAL  RESIDENCE,  AND  SHALL  INCLUDE A ONE, TWO, OR THREE-FAMILY
 HOUSE, AN INDIVIDUAL CONDOMINIUM UNIT, OR A COOPERATIVE APARTMENT  UNIT.
 SUCH  TAX  SHALL  BE PAID AT THE SAME TIME AND IN THE SAME MANNER AS THE
 TAXES IMPOSED BY SECTIONS FOURTEEN  HUNDRED  TWO  AND  FOURTEEN  HUNDRED
 TWO-A OF THIS ARTICLE.
   THE RATE OF SUCH TAX SHALL BE:
   (1)  ONE-QUARTER  OF  ONE PERCENT OF THE CONSIDERATION OR PART THEREOF
 ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY  WHEN  SUCH  CONSIDERATION
 FOR  THE ENTIRE CONVEYANCE IS AT LEAST TWO MILLION DOLLARS BUT LESS THAN
 THREE MILLION DOLLARS;
   (2) ONE-HALF OF ONE PERCENT  OF  THE  CONSIDERATION  OR  PART  THEREOF
 ATTRIBUTABLE  TO  THE  RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION
 FOR THE ENTIRE CONVEYANCE IS AT LEAST THREE  MILLION  DOLLARS  BUT  LESS
 THAN FIVE MILLION DOLLARS;
   (3)  ONE  AND ONE-QUARTER PERCENT OF THE CONSIDERATION OR PART THEREOF
 ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY  WHEN  SUCH  CONSIDERATION
 FOR THE ENTIRE CONVEYANCE IS AT LEAST FIVE MILLION DOLLARS BUT LESS THAN
 TEN MILLION DOLLARS;
   (4)  TWO  AND ONE-QUARTER PERCENT OF THE CONSIDERATION OR PART THEREOF
 ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY  WHEN  SUCH  CONSIDERATION
 FOR  THE ENTIRE CONVEYANCE IS AT LEAST TEN MILLION DOLLARS BUT LESS THAN
 FIFTEEN MILLION DOLLARS;
   (5) TWO AND ONE-HALF PERCENT OF  THE  CONSIDERATION  OR  PART  THEREOF
 ATTRIBUTABLE  TO  THE  RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION
 FOR THE ENTIRE CONVEYANCE IS AT LEAST FIFTEEN MILLION DOLLARS  BUT  LESS
 THAN TWENTY MILLION DOLLARS;
   (6) TWO AND THREE-QUARTERS PERCENT OF THE CONSIDERATION OR PART THERE-
 OF ATTRIBUTABLE TO THE RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION
 FOR  THE  ENTIRE  CONVEYANCE IS AT LEAST TWENTY MILLION DOLLARS BUT LESS
 THAN TWENTY-FIVE MILLION DOLLARS; AND
   (7) TWO AND NINE-TENTHS PERCENT OF THE CONSIDERATION OR  PART  THEREOF
 ATTRIBUTABLE  TO  THE  RESIDENTIAL REAL PROPERTY WHEN SUCH CONSIDERATION
 FOR THE ENTIRE CONVEYANCE IS AT LEAST TWENTY-FIVE MILLION DOLLARS.
   (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF SECTION FOUR-
 TEEN HUNDRED FOUR OF THIS ARTICLE, THE TAX IMPOSED BY THIS SECTION SHALL
 BE PAID BY THE GRANTEE. IF THE GRANTEE HAS FAILED TO PAY THE TAX IMPOSED
 BY THIS ARTICLE AT THE TIME REQUIRED BY SECTION FOURTEEN HUNDRED TEN  OF
 THIS  ARTICLE  OR  IF  THE  GRANTEE IS EXEMPT FROM SUCH TAX, THE GRANTOR

 S. 1509--C                         155                        A. 2009--C
 
 SHALL HAVE THE DUTY TO PAY THE TAX.  WHERE THE GRANTOR HAS THE  DUTY  TO
 PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY, SUCH TAX SHALL BE THE
 JOINT AND SEVERAL LIABILITY OF THE GRANTOR AND THE GRANTEE.
   (C)  EXCEPT  AS OTHERWISE PROVIDED IN THIS SECTION, ALL THE PROVISIONS
 OF THIS  ARTICLE  RELATING  TO  OR  APPLICABLE  TO  THE  ADMINISTRATION,
 COLLECTION, DETERMINATION AND DISTRIBUTION OF THE TAX IMPOSED BY SECTION
 FOURTEEN  HUNDRED  TWO  OF  THIS  ARTICLE SHALL APPLY TO THE TAX IMPOSED
 UNDER THE AUTHORITY OF THIS SECTION WITH SUCH MODIFICATIONS  AS  MAY  BE
 NECESSARY  TO  ADAPT  SUCH  LANGUAGE  TO  THE  TAX  SO  AUTHORIZED. SUCH
 PROVISIONS SHALL APPLY WITH THE  SAME  FORCE  AND  EFFECT  AS  IF  THOSE
 PROVISIONS  HAD BEEN SET FORTH IN THIS SECTION EXCEPT TO THE EXTENT THAT
 ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR
 NOT RELEVANT TO THE TAX AUTHORIZED BY THIS SECTION.
   § 4. Section 1421 of the tax law, as amended by chapter 99 of the laws
 of 2010, is amended to read as follows:
   § 1421. Deposit and dispositions of  revenues.  (A)  From  the  taxes,
 interest  and  penalties  attributable  to  the  tax imposed pursuant to
 section fourteen hundred two of this article, the amount of one  hundred
 ninety-nine million three hundred thousand dollars shall be deposited by
 the  comptroller in the environmental protection fund established pursu-
 ant to section ninety-two-s of the state finance law for the fiscal year
 beginning April first, two thousand nine;  the  amount  of  one  hundred
 nineteen million one hundred thousand dollars shall be deposited in such
 fund  for  the  fiscal year beginning April first, two thousand ten; and
 for each fiscal year thereafter. On or  before  June  twelfth,  nineteen
 hundred ninety-five and on or before the twelfth day of each month ther-
 eafter  (excepting the first and second months of each fiscal year), the
 comptroller shall deposit into such fund from the  taxes,  interest  and
 penalties  collected  pursuant  to  such section fourteen hundred two of
 this article which have been deposited and remain to  the  comptroller's
 credit  in  the  banks, banking houses or trust companies referred to in
 section one hundred seventy-one-a of this chapter at the close of  busi-
 ness  on  the  last  day of the preceding month, an amount equal to one-
 tenth of the annual amount required to be deposited in such fund  pursu-
 ant  to  this  section  for  the  fiscal  year  in which such deposit is
 required to be made. In the event such amount  of  taxes,  interest  and
 penalties  so  remaining  to  the  comptroller's credit is less than the
 amount required to be deposited in such  fund  by  the  comptroller,  an
 amount  equal  to  the  shortfall shall be deposited in such fund by the
 comptroller with subsequent deposits, as soon as the revenue  is  avail-
 able.  Beginning  April  first, nineteen hundred ninety-seven, the comp-
 troller shall transfer monthly to the clean water/clean air fund  estab-
 lished  pursuant  to  section ninety-seven-bbb of the state finance law,
 all moneys remaining from such taxes, interest and  penalties  collected
 that are not required for deposit in the environmental protection fund.
   (B) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, THE TAXES, INTER-
 EST  AND  PENALTIES  ATTRIBUTABLE  TO  (I) THE TAX IMPOSED UNDER SECTION
 FOURTEEN HUNDRED TWO OF THIS ARTICLE AT THE RATE SPECIFIED IN  PARAGRAPH
 TWO  OF  SUBDIVISION (A) OF SUCH SECTION, AND (II) THE TAX IMPOSED UNDER
 SECTION FOURTEEN  HUNDRED  TWO-B  OF  THIS  ARTICLE,  AND  COLLECTED  OR
 RECEIVED  BY THE COMMISSIONER SHALL BE DEPOSITED DAILY WITH SUCH RESPON-
 SIBLE BANKS, BANKING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED  BY
 THE  COMPTROLLER,  TO  THE  CREDIT  OF  THE COMPTROLLER IN TRUST FOR THE
 METROPOLITAN TRANSPORTATION AUTHORITY. AN ACCOUNT MAY BE ESTABLISHED  IN
 ONE  OR  MORE  OF SUCH DEPOSITORIES. SUCH DEPOSITS WILL BE KEPT SEPARATE
 AND APART FROM ALL OTHER MONEY IN THE POSSESSION OF THE COMPTROLLER. THE

 S. 1509--C                         156                        A. 2009--C
 
 COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH  DEPOSITORIES.
 OF THE TOTAL REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMP-
 TROLLER SHALL RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE
 NECESSARY  FOR  REFUNDS UNDER THIS ARTICLE. ON OR BEFORE THE TWELFTH AND
 TWENTY-SIXTH DAY OF EACH SUCCEEDING MONTH, AFTER RESERVING  SUCH  AMOUNT
 FOR  SUCH REFUNDS, THE COMMISSIONER SHALL CERTIFY TO THE COMPTROLLER THE
 AMOUNT OF ALL REVENUES SO RECEIVED DURING THE PRIOR MONTH AS A RESULT OF
 THE TAXES, INTEREST AND PENALTIES SO IMPOSED. THE AMOUNT OF REVENUES  SO
 CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY
 OF  EACH  SUCCEEDING  MONTH FROM SUCH ACCOUNT WITHOUT APPROPRIATION INTO
 THE CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCKBOX  FUND  ESTABLISHED
 PURSUANT TO SECTION FIVE HUNDRED FIFTY-THREE-J OF THE PUBLIC AUTHORITIES
 LAW,  PROVIDED,  HOWEVER,  THAT  THE  COMPTROLLER  SHALL ENSURE THAT ANY
 PAYMENTS TO THE CENTRAL BUSINESS DISTRICT TOLLING CAPITAL  LOCKBOX  FUND
 ESTABLISHED  THAT  ARE  DUE  TO BE PAID BY THE FINAL BUSINESS DAY IN THE
 MONTH OF DECEMBER PURSUANT TO THIS SUBDIVISION SHALL BE RECEIVED BY  THE
 CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCKBOX FUND ON THE SAME BUSI-
 NESS DAY IN WHICH IT IS PAID.
   §  5.  This  act  shall  take  effect July 1, 2019, and shall apply to
 conveyances occurring on or after such date other than conveyances which
 are made pursuant to binding written contracts entered into on or before
 April 1, 2019, provided that the date of execution of such  contract  is
 confirmed  by  independent  evidence,  such  as  the  recording  of  the
 contract, payment of a deposit  or  other  facts  and  circumstances  as
 determined by the commissioner of taxation and finance.
 
                                 PART PPP
 
   Section  1.  Subparagraph  (viii)  of paragraph a of subdivision 10 of
 section 54 of the state finance law, as amended by section 1 of  part  O
 of  chapter  56 of the laws of 2008, clause 2 as amended by section 1 of
 part I of chapter 57 of the laws of 2011, is amended and a new  subpara-
 graph (v) is added to paragraph b to read as follows:
   (viii) "Prior year aid" means[:
   (1)  for  the  state  fiscal year commencing April first, two thousand
 seven, the total amount of state aid a municipality or county  having  a
 population  of  less than one million but more than nine hundred twenty-
 five thousand according to the federal decennial census of two  thousand
 received  in  the state fiscal year commencing April first, two thousand
 six.
   (2) for the state fiscal year commencing  April  first,  two  thousand
 eight  and  in  each  state fiscal year thereafter, the base level grant
 received in the immediately preceding  state  fiscal  year  pursuant  to
 paragraph  b  of  this subdivision and chapter three hundred thirteen of
 the laws of two thousand ten, excluding any deficit reduction adjustment
 pursuant to paragraph e-1  of  this  subdivision,  plus  any  additional
 apportionments  received  in  such  year pursuant to paragraph d of this
 subdivision and any per capita adjustments received in such year  pursu-
 ant  to  paragraph  e  of  this  subdivision]  FOR THE STATE FISCAL YEAR
 COMMENCING APRIL FIRST, TWO THOUSAND NINETEEN AND IN EACH  STATE  FISCAL
 YEAR  THEREAFTER,  THE  BASE  LEVEL  GRANT  RECEIVED  IN THE IMMEDIATELY
 PRECEDING STATE FISCAL YEAR PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION.
   (V) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, WITHIN AMOUNTS
 APPROPRIATED IN THE STATE FISCAL YEAR COMMENCING APRIL FIRST, TWO  THOU-
 SAND  NINETEEN,  AND ANNUALLY THEREAFTER, THERE SHALL BE APPORTIONED AND
 PAID TO EACH MUNICIPALITY WHICH IS A CITY  A  BASE  LEVEL  GRANT  IN  AN

 S. 1509--C                         157                        A. 2009--C
 
 AMOUNT  EQUAL  TO  THE  PRIOR  YEAR AID RECEIVED BY SUCH CITY, AND THERE
 SHALL BE APPORTIONED AND PAID TO EACH MUNICIPALITY WHICH IS  A  TOWN  OR
 VILLAGE A BASE LEVEL GRANT IN ACCORDANCE WITH CLAUSE TWO OF THIS SUBPAR-
 AGRAPH.
   (1) WHEN USED IN THIS SUBPARAGRAPH, UNLESS OTHERWISE EXPRESSLY STATED:
   (A)  "TWO  THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN AIM FUNDING" SHALL
 MEAN THE SUM OF THE BASE LEVEL GRANT PAID IN THE STATE FISCAL YEAR  THAT
 BEGAN APRIL FIRST, TWO THOUSAND EIGHTEEN PURSUANT TO THIS PARAGRAPH.
   (B)  "TWO  THOUSAND SEVENTEEN TOTAL EXPENDITURES" SHALL MEAN ALL FUNDS
 AND TOTAL EXPENDITURES FOR A TOWN OR A VILLAGE AS REPORTED TO THE  STATE
 COMPTROLLER FOR LOCAL FISCAL YEARS ENDED IN TWO THOUSAND SEVENTEEN.
   (C)  "AIM  RELIANCE"  SHALL  MEAN  TWO THOUSAND EIGHTEEN--TWO THOUSAND
 NINETEEN AIM FUNDING CALCULATED AS A PERCENTAGE OF TWO  THOUSAND  SEVEN-
 TEEN  TOTAL  EXPENDITURES,  PROVIDED THAT, FOR A VILLAGE WHICH DISSOLVED
 DURING THE STATE FISCAL YEAR THAT BEGAN APRIL FIRST, TWO THOUSAND  EIGH-
 TEEN,  THE  VILLAGE'S  TWO  THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN AIM
 FUNDING SHALL BE ADDED TO THE EXISTING TWO THOUSAND EIGHTEEN--TWO  THOU-
 SAND  NINETEEN  AIM FUNDING OF THE TOWN INTO WHICH THE VILLAGE DISSOLVED
 FOR PURPOSES OF THIS CALCULATION.
   (2) A BASE LEVEL GRANT EQUAL TO A TOWN OR  VILLAGE'S  PRIOR  YEAR  AID
 ONLY IF SUCH TOWN OR VILLAGE'S AIM RELIANCE EQUALS TWO PERCENT OR GREAT-
 ER  AS  REPORTED TO AND PUBLISHED BY THE STATE COMPTROLLER AS OF JANUARY
 TENTH, TWO THOUSAND NINETEEN.
   § 2. Paragraph i of subdivision 10 of section 54 of the state  finance
 law is amended by adding a new subparagraph (ix) to read as follows:
   (IX)  NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, IN THE STATE
 FISCAL YEAR COMMENCING APRIL FIRST,  TWO  THOUSAND  NINETEEN,  THE  BASE
 LEVEL  GRANT  ADJUSTMENT  PURSUANT TO SUBPARAGRAPH (V) OF PARAGRAPH B OF
 THIS SUBDIVISION SHALL BE MADE ON OR BEFORE SEPTEMBER TWENTY-FIFTH FOR A
 TOWN OR VILLAGE.
   § 3. Subdivision (c) of section 1261 of the  tax  law  is  amended  by
 adding a new paragraph 5-a to read as follows:
   (5-A) HOWEVER, AFTER THE COMPTROLLER HAS MADE THE PAYMENTS REQUIRED BY
 PARAGRAPHS  TWO,  THREE  AND  FIVE OF THIS SUBDIVISION, FOR EACH MUNICI-
 PALITY THAT RECEIVED A BASE LEVEL GRANT IN STATE FISCAL YEAR  TWO  THOU-
 SAND  EIGHTEEN-TWO  THOUSAND  NINETEEN  BUT NOT IN STATE FISCAL YEAR TWO
 THOUSAND NINETEEN-TWO THOUSAND TWENTY UNDER THE AID AND  INCENTIVES  FOR
 MUNICIPALITIES PROGRAM PURSUANT TO SUBDIVISION TEN OF SECTION FIFTY-FOUR
 OF  THE  STATE FINANCE LAW, THE COMPTROLLER SHALL ANNUALLY WITHHOLD FROM
 THE REMAINING TAXES, PENALTIES AND INTEREST IMPOSED  BY  THE  COUNTY  IN
 WHICH  A  MAJORITY  OF  THE  POPULATION  OF SUCH MUNICIPALITY RESIDES AN
 AMOUNT EQUAL TO THE BASE LEVEL GRANT RECEIVED BY  SUCH  MUNICIPALITY  IN
 STATE  FISCAL YEAR TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN AND SHALL
 ANNUALLY DISTRIBUTE, BY DECEMBER FIFTEENTH, TWO THOUSAND NINETEEN AND BY
 SUCH DATE ANNUALLY THEREAFTER, SUCH  AMOUNT  DIRECTLY  TO  SUCH  MUNICI-
 PALITY,  UNLESS  SUCH  MUNICIPALITY HAS A FISCAL YEAR ENDING MAY THIRTY-
 FIRST, THEN SUCH ANNUAL DISTRIBUTION SHALL BE MADE BY MAY FIFTEENTH, TWO
 THOUSAND TWENTY AND BY SUCH DATE ANNUALLY THEREAFTER.  NO  COUNTY  SHALL
 HAVE  ANY  RIGHT,  TITLE  OR  INTEREST IN OR TO THE TAXES, PENALTIES AND
 INTEREST REQUIRED TO BE WITHHELD AND DISTRIBUTED PURSUANT TO THIS  PARA-
 GRAPH.
   §  4.  This  act  shall  take  effect  immediately; provided, however,
 section three of this act shall take effect June 1, 2019.
 
                                 PART QQQ

 S. 1509--C                         158                        A. 2009--C
 
   Section 1. Section 1 of part KK of a  chapter  of  the  laws  of  2019
 directing the department of health to conduct a study relating to staff-
 ing  enhancement  and  patient  safety,  as proposed in legislative bill
 numbers S.1507-C and A.2007-C, is amended to read as follows:
   Section  1.  The Department of Health shall conduct a study to examine
 how staffing enhancements and other initiatives could be used to improve
 patient safety and the quality of healthcare service delivery in  hospi-
 tals  and  nursing homes subject to article 28 of the public health law.
 The Department study  shall  consider  minimum  staffing  levels,  other
 staffing  enhancement  strategies, and other patient quality improvement
 initiatives for registered nurses, licensed practical nurses, and certi-
 fied nurse aides to improve the quality of care and patient safety.
   The study will analyze the range of potential fiscal impacts of staff-
 ing levels, other staffing enhancement  strategies,  and  other  patient
 quality improvement initiatives.
   The  Department  study  will  commence  no later than May 1, 2019, and
 shall engage stakeholders, including the statewide hospital and  nursing
 home  associations,  direct  care health workers, LABOR REPRESENTATIVES,
 and patient and community health advocates, and shall report  its  find-
 ings and recommendations to the Commissioner of the Department of Health
 and to the Temporary President of the Senate and Speaker of the Assembly
 no later than December 31, 2019.
   §    2.  This  act  shall take effect on the same date and in the same
 manner as part KK of a chapter of the laws of 2019 directing the depart-
 ment of health to conduct a study relating to staffing  enhancement  and
 patient  safety,  as  proposed  in legislative bill numbers S.1507-C and
 A.2007-C, takes effect.
 
                                 PART RRR
 
   Section 1. Section 10 of the highway law is amended by  adding  a  new
 subdivision 24-e to read as follows:
   24-E. THE COMMISSIONER OF TRANSPORTATION IS HEREBY AUTHORIZED TO ENTER
 INTO  AN AGREEMENT WITH ANY FIBER OPTIC UTILITY FOR USE AND OCCUPANCY OF
 THE STATE RIGHT OF WAY FOR THE PURPOSES OF INSTALLING, MODIFYING,  RELO-
 CATING,  REPAIRING,  OPERATING,  OR  MAINTAINING FIBER OPTIC FACILITIES.
 SUCH AGREEMENT MAY INCLUDE A FEE FOR USE AND OCCUPANCY OF THE  RIGHT  OF
 WAY,  PROVIDED,  HOWEVER, SUCH FEE SHALL NOT BE GREATER THAN FAIR MARKET
 VALUE. ANY PROVIDER USING OR OCCUPYING A RIGHT OF WAY IN FULFILLMENT  OF
 A  STATE  GRANT  AWARD THROUGH THE NEW NY BROADBAND PROGRAM SHALL NOT BE
 SUBJECT TO A FEE FOR SUCH USE OR OCCUPANCY. ANY FEE FOR USE OR OCCUPANCY
 CHARGED TO A FIBER OPTIC UTILITY SHALL NOT BE PASSED THROUGH IN WHOLE OR
 IN PART AS A FEE, CHARGE, INCREASED SERVICE COST, OR BY ANY OTHER  MEANS
 BY  A  FIBER  OPTIC  UTILITY TO ANY PERSON OR ENTITY THAT CONTRACTS WITH
 SUCH FIBER OPTIC UTILITY FOR SERVICE. ANY COMPENSATION RECEIVED  BY  THE
 STATE  PURSUANT  TO SUCH AGREEMENT SHALL BE DEPOSITED BY THE COMPTROLLER
 INTO THE SPECIAL OBLIGATION RESERVE AND PAYMENT ACCOUNT OF THE DEDICATED
 HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED PURSUANT  TO  SECTION  EIGHTY-
 NINE-B  OF  THE STATE FINANCE LAW. NOTHING HEREIN SHALL IMPAIR, INHIBIT,
 OR OTHERWISE AFFECT THE ABILITY OF ANY MUNICIPALITY TO REGULATE  ZONING,
 LAND  USE,  OR  ANY  OTHER POWER OR AUTHORITY GRANTED UNDER THE LAW. FOR
 PURPOSES OF THIS SUBDIVISION, "MUNICIPALITY"  SHALL  INCLUDE  A  COUNTY,
 CITY, VILLAGE, OR TOWN.
   §  2.  The  transportation corporations law is amended by adding a new
 section 7 to read as follows:

 S. 1509--C                         159                        A. 2009--C
 
   § 7. AGREEMENT FOR FIBER OPTIC UTILITY  USE  AND  OCCUPANCY  OF  STATE
 RIGHT OF WAY. THE COMMISSIONER OF TRANSPORTATION IS HEREBY AUTHORIZED TO
 ENTER  INTO  AN AGREEMENT WITH ANY FIBER OPTIC UTILITY FOR USE AND OCCU-
 PANCY OF THE STATE RIGHT OF WAY FOR THE PURPOSES OF INSTALLING,  MODIFY-
 ING, RELOCATING, REPAIRING, OPERATING, OR MAINTAINING FIBER OPTIC FACIL-
 ITIES.  SUCH  AGREEMENT  MAY  INCLUDE A FEE FOR USE AND OCCUPANCY OF THE
 RIGHT OF WAY, PROVIDED, HOWEVER, SUCH FEE SHALL NOT BE GREATER THAN FAIR
 MARKET VALUE. ANY PROVIDER USING OR OCCUPYING A RIGHT OF WAY IN FULFILL-
 MENT OF A STATE GRANT AWARD THROUGH THE NEW NY BROADBAND  PROGRAM  SHALL
 NOT  BE  SUBJECT  TO A FEE FOR SUCH USE OR OCCUPANCY. ANY FEE FOR USE OR
 OCCUPANCY CHARGED TO A FIBER OPTIC UTILITY SHALL  NOT BE PASSED  THROUGH
 IN  WHOLE OR IN PART AS A FEE, CHARGE, INCREASED SERVICE COST, OR BY ANY
 OTHER MEANS BY A FIBER OPTIC  UTILITY  TO  ANY  PERSON  OR  ENTITY  THAT
 CONTRACTS  WITH  SUCH  FIBER OPTIC UTILITY FOR SERVICE. ANY COMPENSATION
 RECEIVED BY THE STATE PURSUANT TO SUCH AGREEMENT SHALL BE  DEPOSITED  BY
 THE  COMPTROLLER INTO THE SPECIAL OBLIGATION RESERVE AND PAYMENT ACCOUNT
 OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED  PURSUANT  TO
 SECTION  EIGHTY-NINE-B  OF  THE  STATE FINANCE LAW. NOTHING HEREIN SHALL
 IMPAIR, INHIBIT, OR OTHERWISE AFFECT THE ABILITY OF ANY MUNICIPALITY  TO
 REGULATE ZONING, LAND USE, OR ANY OTHER POWER OR AUTHORITY GRANTED UNDER
 THE  LAW.  FOR  PURPOSES OF THIS SECTION, "MUNICIPALITY" SHALL INCLUDE A
 COUNTY, CITY, VILLAGE, OR TOWN.
   § 3. This act shall take effect immediately and shall  expire  and  be
 deemed  repealed  five  years  after such date, provided that agreements
 executed prior to such repeal shall be permitted  to  continue  for  the
 term  of  the  agreement  executed  under  this act notwithstanding such
 repeal.
 
                                 PART SSS
 
   Section 1. Paragraph 5 of subdivision (a) of section  24  of  the  tax
 law,  as  amended  by  section  1 of part M of chapter 59 of the laws of
 2017, is amended to read as follows:
   (5) For the period two thousand fifteen through two thousand  [twenty-
 two]  TWENTY-FOUR,  in  addition  to the amount of credit established in
 paragraph two of this subdivision, a taxpayer shall be allowed a  credit
 equal to the product (or pro rata share of the product, in the case of a
 member of a partnership) of ten percent and the amount of wages or sala-
 ries  paid to individuals directly employed (excluding those employed as
 writers, directors, music directors, producers and performers, including
 background actors with no scripted lines) by a qualified film production
 company or a qualified independent film production company for  services
 performed  by those individuals in one of the counties specified in this
 paragraph in connection with a qualified film with a minimum  budget  of
 five  hundred  thousand dollars. For purposes of this additional credit,
 the services must be performed in one or more of the following counties:
 Albany, Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung,
 Chenango,  Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
 Livingston, Madison,  Monroe,  Montgomery,  Niagara,  Oneida,  Onondaga,
 Ontario,  Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,
 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben,  Sulli-
 van,  Tioga,  Tompkins,  Ulster,  Warren, Washington, Wayne, Wyoming, or
 Yates. The aggregate amount of  tax  credits  allowed  pursuant  to  the
 authority  of  this  paragraph  shall  be five million dollars each year
 during the period two thousand fifteen through two thousand [twenty-two]

 S. 1509--C                         160                        A. 2009--C
 
 TWENTY-FOUR of the annual  allocation  made  available  to  the  program
 pursuant  to  paragraph  four  of  subdivision (e) of this section. Such
 aggregate amount of credits shall be allocated by the governor's  office
 for  motion  picture and television development among taxpayers in order
 of priority based upon the date of filing an application for  allocation
 of film production credit with such office. If the total amount of allo-
 cated  credits  applied for under this paragraph in any year exceeds the
 aggregate amount of tax credits allowed for such year under  this  para-
 graph,  such  excess  shall be treated as having been applied for on the
 first day of the next year. If the total amount of allocated tax credits
 applied for under this paragraph at the conclusion of any year  is  less
 than five million dollars, the remainder shall be treated as part of the
 annual  allocation  made  available to the program pursuant to paragraph
 four of subdivision (e) of this section. However, in no  event  may  the
 total  of  the  credits  allocated  under this paragraph and the credits
 allocated under paragraph five of subdivision (a) of section  thirty-one
 of this article exceed five million dollars in any year during the peri-
 od two thousand fifteen through two thousand [twenty-two] TWENTY-FOUR.
   §  2.  Paragraph 4 of subdivision (e) of section 24 of the tax law, as
 amended by section 2 of part M of chapter 59 of the  laws  of  2017,  is
 amended to read as follows:
   (4) Additional pool 2 - The aggregate amount of tax credits allowed in
 subdivision (a) of this section shall be increased by an additional four
 hundred twenty million dollars in each year starting in two thousand ten
 through  two  thousand  [twenty-two] TWENTY-FOUR provided however, seven
 million dollars of the annual allocation  shall  be  available  for  the
 empire  state film post production credit pursuant to section thirty-one
 of this article in two thousand thirteen and two thousand  fourteen  and
 twenty-five  million dollars of the annual allocation shall be available
 for the empire state film post production  credit  pursuant  to  section
 thirty-one of this article in each year starting in two thousand fifteen
 through  two  thousand  [twenty-two] TWENTY-FOUR.   This amount shall be
 allocated by the governor's office for  motion  picture  and  television
 development  among  taxpayers in accordance with subdivision (a) of this
 section. If the commissioner of economic development determines that the
 aggregate amount of tax credits available from additional pool 2 for the
 empire state film production tax credit have been previously  allocated,
 and  determines  that  the pending applications from eligible applicants
 for the empire state film post production tax credit pursuant to section
 thirty-one of this article is insufficient to  utilize  the  balance  of
 unallocated  empire  state  film  post  production tax credits from such
 pool, the remainder, after such  pending  applications  are  considered,
 shall  be  made  available  for  allocation in the empire state film tax
 credit pursuant to this  section,  subdivision  twenty  of  section  two
 hundred  ten-B  and  subsection  (gg) of section six hundred six of this
 chapter. Also, if the commissioner of  economic  development  determines
 that  the aggregate amount of tax credits available from additional pool
 2 for the empire state film post production tax credit have been  previ-
 ously  allocated,  and  determines  that  the  pending applications from
 eligible applicants for the empire  state  film  production  tax  credit
 pursuant to this section is insufficient to utilize the balance of unal-
 located  film production tax credits from such pool, then all or part of
 the remainder, after such pending applications are considered, shall  be
 made  available for allocation for the empire state film post production
 credit pursuant to this section, subdivision thirty-two of  section  two
 hundred  ten-B  and  subsection  (qq) of section six hundred six of this

 S. 1509--C                         161                        A. 2009--C
 
 chapter. The governor's office for motion picture and television  devel-
 opment  must  notify  taxpayers of their allocation year and include the
 allocation year on the certificate of tax credit. Taxpayers eligible  to
 claim  a credit must report the allocation year directly on their empire
 state film production credit tax form for each year a credit is  claimed
 and include a copy of the certificate with their tax return. In the case
 of  a  qualified  film  that  receives  funds from additional pool 2, no
 empire state film production credit shall be claimed before the later of
 the taxable year the production of the qualified film  is  complete,  or
 the taxable year immediately following the allocation year for which the
 film  has  been  allocated  credit  by  the governor's office for motion
 picture and television development.
   § 3. Paragraph 6 of subdivision (a) of section 31 of the tax  law,  as
 amended  by  section  3  of part M of chapter 59 of the laws of 2017, is
 amended to read as follows:
   (6) For the period two thousand fifteen through two thousand  [twenty-
 two]  TWENTY-FOUR,  in  addition  to the amount of credit established in
 paragraph two of THIS subdivision [(a)  of  this  section],  a  taxpayer
 shall be allowed a credit equal to the product (or pro rata share of the
 product,  in  the  case of a member of a partnership) of ten percent and
 the amount of wages or salaries paid to  individuals  directly  employed
 (excluding  those  employed  as  writers,  directors,  music  directors,
 producers and performers, including background actors with  no  scripted
 lines)  for  services performed by those individuals in one of the coun-
 ties specified in this paragraph in connection with the post  production
 work  on a qualified film with a minimum budget of five hundred thousand
 dollars at a qualified post production facility in one of  the  counties
 listed  in  this  paragraph. For purposes of this additional credit, the
 services must be performed in one or more  of  the  following  counties:
 Albany,  Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua, Chemung,
 Chenango, Clinton, Cortland, Delaware, Erie,  Essex,  Franklin,  Fulton,
 Genesee,  Hamilton,  Herkimer,  Jefferson,  Lewis,  Livingston, Madison,
 Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego,
 Otsego, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben,
 Tioga, Tompkins, Wayne, Wyoming, or Yates. The aggregate amount  of  tax
 credits  allowed  pursuant  to  the authority of this paragraph shall be
 five million dollars each year during the period  two  thousand  fifteen
 through  two  thousand [twenty-two] TWENTY-FOUR of the annual allocation
 made available to the empire state film post production credit  pursuant
 to  paragraph  four  of  subdivision  (e) of section twenty-four of this
 article. Such aggregate amount of credits  shall  be  allocated  by  the
 governor's  office  for  motion picture and television development among
 taxpayers in order of priority based upon the date of filing an applica-
 tion for allocation of post production credit with such office.  If  the
 total  amount  of  allocated credits applied for under this paragraph in
 any year exceeds the aggregate amount of tax credits  allowed  for  such
 year  under  this paragraph, such excess shall be treated as having been
 applied for on the first day of the next year. If the  total  amount  of
 allocated tax credits applied for under this paragraph at the conclusion
 of  any  year  is less than five million dollars, the remainder shall be
 treated as part of the annual allocation for two thousand seventeen made
 available to the empire state film post production  credit  pursuant  to
 paragraph  four  of subdivision (e) of section twenty-four of this arti-
 cle. However, in no event may the total of the credits  allocated  under
 this  paragraph and the credits allocated under paragraph five of subdi-
 vision (a) of section twenty-four of this article  exceed  five  million

 S. 1509--C                         162                        A. 2009--C
 
 dollars  in  any year during the period two thousand fifteen through two
 thousand [twenty-two] TWENTY-FOUR.
   § 4. This act shall take effect immediately.
 
                                 PART TTT
 
   Section  1. The state comptroller is hereby authorized and directed to
 loan money in accordance with the provisions set forth in subdivision  5
 of  section  4  of  the  state finance law to the following funds and/or
 accounts:
   1. DOL-Child performer protection account (20401).
   2. Proprietary vocational school supervision account (20452).
   3. Local government records management account (20501).
   4. Child health plus program account (20810).
   5. EPIC premium account (20818).
   6. Education - New (20901).
   7. VLT - Sound basic education fund (20904).
   8.  Sewage  treatment  program  management  and  administration   fund
 (21000).
   9. Hazardous bulk storage account (21061).
   10. Federal grants indirect cost recovery account (21065).
   11. Low level radioactive waste account (21066).
   12. Recreation account (21067).
   13. Public safety recovery account (21077).
   14. Environmental regulatory account (21081).
   15. Natural resource account (21082).
   16. Mined land reclamation program account (21084).
   17. Great lakes restoration initiative account (21087).
   18. Environmental protection and oil spill compensation fund (21200).
   19. Public transportation systems account (21401).
   20. Metropolitan mass transportation (21402).
   21. Operating permit program account (21451).
   22. Mobile source account (21452).
   23.   Statewide  planning  and  research  cooperative  system  account
 (21902).
   24. New York state thruway authority account (21905).
   25. Mental hygiene program fund account (21907).
   26. Mental hygiene patient income account (21909).
   27. Financial control board account (21911).
   28. Regulation of racing account (21912).
   29. New York Metropolitan Transportation Council account (21913).
   30. State university dormitory income reimbursable account (21937).
   31. Criminal justice improvement account (21945).
   32. Environmental laboratory reference fee account (21959).
   33. Training, management and evaluation account (21961).
   34. Clinical laboratory reference system assessment account (21962).
   35. Indirect cost recovery account (21978).
   36. High school equivalency program account (21979).
   37. Multi-agency training account (21989).
   38.  Interstate  reciprocity  for  post-secondary  distance  education
 account (23800).
   39. Bell jar collection account (22003).
   40. Industry and utility service account (22004).
   41. Real property disposition account (22006).
   42. Parking account (22007).
   43. Courts special grants (22008).

 S. 1509--C                         163                        A. 2009--C
 
   44. Asbestos safety training program account (22009).
   45. Camp Smith billeting account (22017).
   46. Batavia school for the blind account (22032).
   47. Investment services account (22034).
   48. Surplus property account (22036).
   49. Financial oversight account (22039).
   50. Regulation of Indian gaming account (22046).
   51. Rome school for the deaf account (22053).
   52. Seized assets account (22054).
   53. Administrative adjudication account (22055).
   54. Federal salary sharing account (22056).
   55. New York City assessment account (22062).
   56. Cultural education account (22063).
   57. Local services account (22078).
   58. DHCR mortgage servicing account (22085).
   59. Housing indirect cost recovery account (22090).
   60. DHCR-HCA application fee account (22100).
   61. Low income housing monitoring account (22130).
   62. Corporation administration account (22135).
   63. Montrose veteran's home account (22144).
   64. Deferred compensation administration account (22151).
   65. Rent revenue other New York City account (22156).
   66. Rent revenue account (22158).
   67. Tax revenue arrearage account (22168).
   68. State university general income offset account (22654).
   69. Lake George park trust fund account (22751).
   70. State police motor vehicle law enforcement account (22802).
   71. Highway safety program account (23001).
   72. DOH drinking water program account (23102).
   73. NYCCC operating offset account (23151).
   74. Commercial gaming revenue account (23701).
   75. Commercial gaming regulation account (23702).
   76. Highway use tax administration account (23801).
   77. Fantasy sports administration account (24951).
   78. Highway and bridge capital account (30051).
   79. Aviation purpose account (30053).
   80. State university residence hall rehabilitation fund (30100).
   81. State parks infrastructure account (30351).
   82. Clean water/clean air implementation fund (30500).
   83. Hazardous waste remedial cleanup account (31506).
   84. Youth facilities improvement account (31701).
   85. Housing assistance fund (31800).
   86. Housing program fund (31850).
   87. Highway facility purpose account (31951).
   88. Information technology capital financing account (32215).
   89. New York racing account (32213).
   90. Capital miscellaneous gifts account (32214).
   91.  New  York  environmental protection and spill remediation account
 (32219).
   92. Mental hygiene facilities capital improvement fund (32300).
   93. Correctional facilities capital improvement fund (32350).
   94. New York State Storm Recovery Capital Fund (33000).
   95. OGS convention center account (50318).
   96. Empire Plaza Gift Shop (50327).
   97. Centralized services fund (55000).
   98. Archives records management account (55052).

 S. 1509--C                         164                        A. 2009--C
 
   99. Federal single audit account (55053).
   100. Civil service EHS occupational health program account (55056).
   101. Banking services account (55057).
   102. Cultural resources survey account (55058).
   103. Neighborhood work project account (55059).
   104. Automation & printing chargeback account (55060).
   105. OFT NYT account (55061).
   106. Data center account (55062).
   107. Intrusion detection account (55066).
   108. Domestic violence grant account (55067).
   109. Centralized technology services account (55069).
   110. Labor contact center account (55071).
   111. Human services contact center account (55072).
   112. Tax contact center account (55073).
   113. Executive direction internal audit account (55251).
   114. CIO Information technology centralized services account (55252).
   115. Health insurance internal service account (55300).
   116.  Civil  service employee benefits division administrative account
 (55301).
   117. Correctional industries revolving fund (55350).
   118. Employees health insurance account (60201).
   119. Medicaid management information system escrow fund (60900).
   120. Department of law civil recoveries account (55074).
   121. Utility environmental regulatory account (21064).
   122. New York state secure choice administrative account (23806).
   123. New York state medical indemnity fund account (_____).
   124. New York state cannabis revenue fund (_____).
   § 1-a. The state comptroller is hereby authorized and directed to loan
 money in accordance with the provisions set forth in  subdivision  5  of
 section  4  of the state finance law to any account within the following
 federal funds, provided the comptroller has made  a  determination  that
 sufficient  federal grant award authority is available to reimburse such
 loans:
   1. Federal USDA-food and nutrition services fund (25000).
   2. Federal health and human services fund (25100).
   3. Federal education fund (25200).
   4. Federal block grant fund (25250).
   5. Federal miscellaneous operating grants fund (25300).
   6. Federal unemployment insurance administration fund (25900).
   7. Federal unemployment insurance occupational training fund (25950).
   8. Federal emergency employment act fund (26000).
   9. Federal capital projects fund (31350).
   § 1-b. The state comptroller is hereby authorized and directed to loan
 money in accordance with the provisions set forth in  subdivision  5  of
 section 4 of the state finance law to any fund within the special reven-
 ue,  capital projects, proprietary or fiduciary funds for the purpose of
 payment of any fringe benefit or  indirect  cost  liabilities  or  obli-
 gations incurred.
   §  2.  Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget, on
 or before March 31, 2020, up to the unencumbered balance or the  follow-
 ing amounts:
   Economic Development and Public Authorities:
   1.  $175,000  from the miscellaneous special revenue fund, underground
 facilities safety training account (22172), to the general fund.

 S. 1509--C                         165                        A. 2009--C
 
   2. An amount up to the unencumbered  balance  from  the  miscellaneous
 special  revenue  fund, business and licensing services account (21977),
 to the general fund.
   3.  $14,810,000  from  the  miscellaneous  special  revenue fund, code
 enforcement account (21904), to the general fund.
   4. $3,000,000 from the  general  fund  to  the  miscellaneous  special
 revenue fund, tax revenue arrearage account (22168).
   Education:
   1.  $2,709,000,000  from  the  general fund to the state lottery fund,
 education account (20901), as reimbursement for disbursements made  from
 such  fund for supplemental aid to education pursuant to section 92-c of
 the state finance law that are in excess of  the  amounts  deposited  in
 such fund for such purposes pursuant to section 1612 of the tax law.
   2.  $975,200,000  from the general fund to the state lottery fund, VLT
 education account (20904), as reimbursement for disbursements made  from
 such  fund for supplemental aid to education pursuant to section 92-c of
 the state finance law that are in excess of  the  amounts  deposited  in
 such fund for such purposes pursuant to section 1612 of the tax law.
   3. $161,600,000 from the general fund to the New York state commercial
 gaming fund, commercial gaming revenue account (23701), as reimbursement
 for  disbursements made from such fund for supplemental aid to education
 pursuant to section 97-nnnn of the state finance law that are in  excess
 of  the  amounts deposited in such fund for purposes pursuant to section
 1352 of the racing, pari-mutuel wagering and breeding law.
   4. $18,000,000 from  the  interactive  fantasy  sports  fund,  fantasy
 sports  education  account (24950), to the state lottery fund, education
 account (20901), as reimbursement for disbursements made from such  fund
 for  supplemental aid to education pursuant to section 92-c of the state
 finance law.
   5. $36,211,000 from the charitable gifts trust  fund,  elementary  and
 secondary education account (24901), to the general fund, for payment of
 general  support  for  public  schools pursuant to section 3609-a of the
 education law.
   6. Moneys from the state lottery fund (20900) up to an amount deposit-
 ed in such fund pursuant to section 1612 of the tax law in excess of the
 current year appropriation for supplemental aid to education pursuant to
 section 92-c of the state finance law.
   7. $300,000 from the New York state local government  records  manage-
 ment  improvement  fund,  local  government  records  management account
 (20501), to the New York state archives partnership trust fund, archives
 partnership trust maintenance account (20351).
   8. $900,000 from the general fund to the miscellaneous special revenue
 fund, Batavia school for the blind account (22032).
   9. $900,000 from the general fund to the miscellaneous special revenue
 fund, Rome school for the deaf account (22053).
   10. $343,400,000 from  the  state  university  dormitory  income  fund
 (40350)  to  the  miscellaneous  special  revenue fund, state university
 dormitory income reimbursable account (21937).
   11. $8,318,000 from the general fund to the  state  university  income
 fund,  state  university  income offset account (22654), for the state's
 share of repayment of the STIP loan.
   12. $44,000,000 from the state university income fund, state universi-
 ty hospitals income reimbursable account (22656) to the general fund for
 hospital debt service for the period April 1,  2019  through  March  31,
 2020.

 S. 1509--C                         166                        A. 2009--C
 
   13.  $7,200,000 from the miscellaneous special revenue fund, office of
 the professions account (22051), to the miscellaneous  capital  projects
 fund, office of the professions electronic licensing account (32200).
   14.  $24,000,000  from any of the state education department's special
 revenue and internal service funds to the miscellaneous special  revenue
 fund, indirect cost recovery account (21978) or to the federal miscella-
 neous operating grants fund, federal indirect cost recovery account.
   15.  $6,600,000  from  any of the state education department's special
 revenue or internal service funds to the capital projects fund (30000).
   Environmental Affairs:
   1. $16,000,000 from any of the department of  environmental  conserva-
 tion's  special  revenue federal funds to the environmental conservation
 special revenue fund, federal indirect recovery account (21065).
   2. $5,000,000 from any of the department  of  environmental  conserva-
 tion's special revenue federal funds to the conservation fund (21150) OR
 Marine  Resources  Account  (21151)  as  necessary to avoid diversion of
 conservation funds.
   3. $3,000,000 from any of the office of parks, recreation and historic
 preservation capital projects federal funds and special revenue  federal
 funds  to the miscellaneous special revenue fund, federal grant indirect
 cost recovery account (22188).
   4. $1,000,000 from any of the office of parks, recreation and historic
 preservation special revenue federal funds to the miscellaneous  capital
 projects fund, I love NY water account (32212).
   5.  $28,000,000  from the general fund to the environmental protection
 fund, environmental protection fund transfer account (30451).
   6. $1,800,000 from the general fund to the  hazardous  waste  remedial
 fund, hazardous waste oversight and assistance account (31505).
   7.  An  amount  up  to or equal to the cash balance within the special
 revenue-other waste management & cleanup account (21053) to the  capital
 projects  fund  (30000) for services and capital expenses related to the
 management and cleanup program as put forth in section  27-1915  of  the
 environmental conservation law.
   8.  $1,800,000  from  the  miscellaneous  special revenue fund, public
 service account (22011) to the miscellaneous special revenue fund, util-
 ity environmental regulatory account (21064).
   9. $500,000 from the general fund to the enterprise fund,  state  fair
 account (50051).
   10.  $2,200,000  from  the  miscellaneous special revenue fund, public
 service account (22011) to the general fund.
   Family Assistance:
   1. $7,000,000 from any of the office of children and family  services,
 office  of  temporary and disability assistance, or department of health
 special revenue federal funds and the general fund, in  accordance  with
 agreements  with social services districts, to the miscellaneous special
 revenue fund, office of human resources development state match  account
 (21967).
   2.  $4,000,000  from any of the office of children and family services
 or office of temporary and disability assistance special revenue federal
 funds to the miscellaneous special revenue fund, family preservation and
 support services and family violence services account (22082).
   3. $18,670,000 from any of the office of children and family services,
 office of temporary and disability assistance, or department  of  health
 special  revenue  federal  funds  and  any  other miscellaneous revenues
 generated from the operation of office of children and  family  services
 programs to the general fund.

 S. 1509--C                         167                        A. 2009--C
 
   4.  $125,000,000  from  any  of the office of temporary and disability
 assistance or department of health special revenue funds to the  general
 fund.
   5.  $2,500,000  from  any  of  the  office of temporary and disability
 assistance special revenue funds to the  miscellaneous  special  revenue
 fund,  office  of  temporary  and  disability assistance program account
 (21980).
   6. $24,000,000 from any of the office of children and family services,
 office of temporary and disability assistance, department of labor,  and
 department  of  health  special  revenue  federal funds to the office of
 children and family services miscellaneous special revenue fund,  multi-
 agency training contract account (21989).
   7.  $205,000,000  from  the  miscellaneous special revenue fund, youth
 facility per diem account (22186), to the general fund.
   8. $621,850 from the general fund to the combined gifts,  grants,  and
 bequests fund, WB Hoyt Memorial account (20128).
   9.  $5,000,000  from  the  miscellaneous  special  revenue fund, state
 central registry (22028), to the general fund.
   General Government:
   1. $1,566,000 from the miscellaneous special revenue fund, examination
 and miscellaneous revenue account (22065) to the general fund.
   2. $8,083,000 from the general fund to the health insurance  revolving
 fund (55300).
   3.  $292,400,000  from  the  health  insurance  reserve  receipts fund
 (60550) to the general fund.
   4. $150,000 from the general fund to the not-for-profit revolving loan
 fund (20650).
   5. $150,000 from the not-for-profit revolving loan fund (20650) to the
 general fund.
   6. $3,000,000 from the miscellaneous  special  revenue  fund,  surplus
 property account (22036), to the general fund.
   7.  $19,000,000  from  the miscellaneous special revenue fund, revenue
 arrearage account (22024), to the general fund.
   8. $1,826,000 from the miscellaneous  special  revenue  fund,  revenue
 arrearage  account  (22024),  to the miscellaneous special revenue fund,
 authority budget office account (22138).
   9. $1,000,000 from the miscellaneous  special  revenue  fund,  parking
 services  account (22007), to the general fund, for the purpose of reim-
 bursing the costs of debt service related to state parking facilities.
   10. $9,632,000 from the general fund to the centralized services fund,
 COPS account (55013).
   11. $13,854,000 from the general fund to the agencies internal service
 fund, central technology services account (55069), for  the  purpose  of
 enterprise technology projects.
   12. $10,000,000 from the general fund to the agencies internal service
 fund, state data center account (55062).
   13.  $20,000,000 from the miscellaneous special revenue fund, workers'
 compensation account (21995),  to  the  miscellaneous  capital  projects
 fund,  workers'  compensation  board  IT  business  process design fund,
 (32218).
   14. $12,000,000 from the miscellaneous special revenue  fund,  parking
 services  account (22007), to the centralized services, building support
 services account (55018).
   15. $30,000,000 from the general fund to the  internal  service  fund,
 business services center account (55022).

 S. 1509--C                         168                        A. 2009--C
 
   16.  $8,000,000  from  the  general fund to the internal service fund,
 building support services account (55018).
   17.  $1,500,000  from  the  combined  expendable trust, special events
 account (20120), to the general fund.
   Health:
   1. A transfer from the general fund to the combined gifts, grants  and
 bequests  fund, breast cancer research and education account (20155), up
 to an amount equal to the  monies  collected  and  deposited  into  that
 account in the previous fiscal year.
   2.  A transfer from the general fund to the combined gifts, grants and
 bequests  fund,  prostate  cancer  research,  detection,  and  education
 account  (20183),  up  to  an  amount  equal to the moneys collected and
 deposited into that account in the previous fiscal year.
   3. A transfer from the general fund to the combined gifts, grants  and
 bequests  fund,  Alzheimer's  disease  research  and  assistance account
 (20143), up to an amount equal to the  moneys  collected  and  deposited
 into that account in the previous fiscal year.
   4.  $33,134,000  from the HCRA resources fund (20800) to the miscella-
 neous special revenue fund, empire state stem cell  trust  fund  account
 (22161).
   5. $6,000,000 from the miscellaneous special revenue fund, certificate
 of  need  account  (21920),  to the miscellaneous capital projects fund,
 healthcare IT capital subfund (32216).
   6. $2,000,000 from  the  miscellaneous  special  revenue  fund,  vital
 health  records  account  (22103), to the miscellaneous capital projects
 fund, healthcare IT capital subfund (32216).
   7. $2,000,000 from the miscellaneous  special  revenue  fund,  profes-
 sional  medical  conduct  account  (22088), to the miscellaneous capital
 projects fund, healthcare IT capital subfund (32216).
   8. $91,304,000 from the HCRA resources fund  (20800)  to  the  capital
 projects fund (30000).
   9.  $6,550,000  from  the  general fund to the medical marihuana trust
 fund, health operation and oversight account (23755).
   10. $1,086,000 from the miscellaneous special  revenue  fund,  certif-
 icate of need account (21920), to the general fund.
   11.  $59,000,000 from the charitable gifts trust fund, health charita-
 ble account (24900), to the general fund, for payment of general support
 for primary, preventive, and inpatient health care,  dental  and  vision
 care,  hunger  prevention and nutritional assistance, and other services
 for New York state residents with the overall goal of ensuring that  New
 York  state  residents  have  access  to  quality  health care and other
 related services.
   Labor:
   1. $500,000 from the miscellaneous special revenue fund, DOL  fee  and
 penalty account (21923), to the child performer's protection fund, child
 performer protection account (20401).
   2.  $11,700,000  from  the unemployment insurance interest and penalty
 fund,  unemployment  insurance  special  interest  and  penalty  account
 (23601), to the general fund.
   3.  $5,000,000  from  the miscellaneous special revenue fund, workers'
 compensation account (21995), to  the  training  and  education  program
 occupation  safety  and health fund, OSHA-training and education account
 (21251) and occupational health inspection account (21252).
   Mental Hygiene:
   1. $10,000,000 from the general fund,  to  the  miscellaneous  special
 revenue fund, federal salary sharing account (22056).

 S. 1509--C                         169                        A. 2009--C
 
   2.  $3,800,000 from the general fund, to the agencies internal service
 fund, civil service EHS occupational health program account (55056).
   Public Protection:
   1.  $1,350,000  from the miscellaneous special revenue fund, emergency
 management account (21944), to the general fund.
   2. $2,087,000 from the  general  fund  to  the  miscellaneous  special
 revenue fund, recruitment incentive account (22171).
   3.  $20,773,000  from  the general fund to the correctional industries
 revolving  fund,  correctional  industries  internal   service   account
 (55350).
   4. $60,000,000 from any of the division of homeland security and emer-
 gency services special revenue federal funds to the general fund.
   5.  $21,500,000  from the miscellaneous special revenue fund, criminal
 justice improvement account (21945), to the general fund.
   6. $115,420,000 from the state police motor  vehicle  law  enforcement
 and  motor  vehicle  theft  and  insurance  fraud prevention fund, state
 police motor vehicle enforcement account (22802), to  the  general  fund
 for state operation expenses of the division of state police.
   7.  $119,500,000  from the general fund to the correctional facilities
 capital improvement fund (32350).
   8. $5,000,000 from the general  fund  to  the  dedicated  highway  and
 bridge trust fund (30050) for the purpose of work zone safety activities
 provided by the division of state police for the department of transpor-
 tation.
   9.  $10,000,000 from the miscellaneous special revenue fund, statewide
 public safety communications account (22123), to  the  capital  projects
 fund (30000).
   10.  $17,080,000  from  the  miscellaneous special revenue fund, legal
 services assistance account (22096), to the general fund.
   11. $1,000,000 from the general fund to the agencies internal  service
 fund, neighborhood work project account (55059).
   12.  $7,980,000  from  the miscellaneous special revenue fund, finger-
 print identification & technology account (21950), to the general fund.
   13. $1,400,000 from the state police motor vehicle law enforcement and
 motor vehicle theft and insurance fraud prevention fund,  motor  vehicle
 theft and insurance fraud account (22801), to the general fund.
   14.  $150,000  from  the medical marihuana trust fund, law enforcement
 account (23753), to the general fund.
   15. $25,000,000 from the miscellaneous special revenue fund, statewide
 public safety communications account (22123), to the general fund.
   16. A transfer of the  unencumbered  balance  from  the  miscellaneous
 special revenue fund, airport security account (22199), to the miscella-
 neous special revenue fund, securing the cities account.
   Transportation:
   1. $17,672,000 from the federal miscellaneous operating grants fund to
 the  miscellaneous special revenue fund, New York Metropolitan Transpor-
 tation Council account (21913).
   2. $20,147,000 from the federal capital projects fund to the miscella-
 neous special revenue fund, New York Metropolitan Transportation Council
 account (21913).
   3. $15,181,992 from the general fund to the mass transportation  oper-
 ating  assistance  fund, public transportation systems operating assist-
 ance account (21401), of which $12,000,000 constitutes the base need for
 operations.
   4. $727,500,000 from the general fund to  the  dedicated  highway  and
 bridge trust fund (30050).

 S. 1509--C                         170                        A. 2009--C
 
   5.  $244,250,000 from the general fund to the MTA financial assistance
 fund, mobility tax trust account (23651).
   6. $5,000,000 from the miscellaneous special revenue fund, transporta-
 tion  regulation  account  (22067)  to  the dedicated highway and bridge
 trust fund (30050), for disbursements made  from  such  fund  for  motor
 carrier  safety that are in excess of the amounts deposited in the dedi-
 cated highway and bridge trust fund (30050) for such purpose pursuant to
 section 94 of the transportation law.
   7. $3,000,000 from the miscellaneous  special  revenue  fund,  traffic
 adjudication account (22055), to the general fund.
   8. $17,421,000 from the mass transportation operating assistance fund,
 metropolitan  mass  transportation operating assistance account (21402),
 to the capital projects fund (30000).
   9. $5,000,000 from the miscellaneous special revenue fund, transporta-
 tion regulation account (22067) to the general fund,  for  disbursements
 made  from  such fund for motor carrier safety that are in excess of the
 amounts deposited in the general  fund  for  such  purpose  pursuant  to
 section 94 of the transportation law.
   Miscellaneous:
   1. $250,000,000 from the general fund to any funds or accounts for the
 purpose of reimbursing certain outstanding accounts receivable balances.
   2.  $500,000,000  from  the general fund to the debt reduction reserve
 fund (40000).
   3. $450,000,000 from the New York state storm  recovery  capital  fund
 (33000) to the revenue bond tax fund (40152).
   4.  $18,550,000  from  the general fund, community projects account GG
 (10256), to the general fund, state purposes account (10050).
   5. $100,000,000 from any special revenue federal fund to  the  general
 fund, state purposes account (10050).
   §  3.  Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, on or before March 31, 2020:
   1. Upon request of the commissioner of environmental conservation,  up
 to  $12,659,400 from revenues credited to any of the department of envi-
 ronmental conservation special revenue funds, including $4,000,000  from
 the  environmental  protection  and oil spill compensation fund (21200),
 and $1,831,600 from the conservation fund (21150), to the  environmental
 conservation special revenue fund, indirect charges account (21060).
   2.  Upon request of the commissioner of agriculture and markets, up to
 $3,000,000 from any special revenue fund or enterprise fund  within  the
 department of agriculture and markets to the general fund, to pay appro-
 priate administrative expenses.
   3.  Upon request of the commissioner of agriculture and markets, up to
 $2,000,000 from the state exposition special fund, state  fair  receipts
 account  (50051)  to the miscellaneous capital projects fund, state fair
 capital improvement account (32208).
   4. Upon request of the commissioner of the  division  of  housing  and
 community  renewal, up to $6,221,000 from revenues credited to any divi-
 sion of housing and community renewal federal or  miscellaneous  special
 revenue fund to the miscellaneous special revenue fund, housing indirect
 cost recovery account (22090).
   5.  Upon  request  of  the commissioner of the division of housing and
 community renewal, up to $5,500,000 may be transferred from any  miscel-
 laneous  special  revenue  fund  account,  to  any miscellaneous special
 revenue fund.

 S. 1509--C                         171                        A. 2009--C
 
   6. Upon request of the commissioner of health up  to  $8,500,000  from
 revenues  credited  to any of the department of health's special revenue
 funds, to the miscellaneous special revenue fund, administration account
 (21982).
   § 4. On or before March 31, 2020, the comptroller is hereby authorized
 and  directed  to  deposit  earnings  that would otherwise accrue to the
 general fund that are attributable to the operation of section  98-a  of
 the  state  finance  law, to the agencies internal service fund, banking
 services account (55057), for the purpose  of  meeting  direct  payments
 from such account.
   §  5.  Notwithstanding  any law to the contrary, upon the direction of
 the director of the budget and upon requisition by the state  university
 of  New  York,  the  dormitory  authority  of  the  state of New York is
 directed to transfer, up to $22,000,000 in revenues generated  from  the
 sale of notes or bonds, the state university income fund general revenue
 account  (22653)  for  reimbursement  of  bondable equipment for further
 transfer to the state's general fund.
   § 6. Notwithstanding any law to the contrary, and in  accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget and
 upon  consultation  with  the  state university chancellor or his or her
 designee, on or before March 31, 2020, up to $16,000,000 from the  state
 university  income  fund  general  revenue  account (22653) to the state
 general fund for debt service costs related to campus supported  capital
 project  costs  for  the  NY-SUNY  2020  challenge  grant program at the
 University at Buffalo.
   § 7. Notwithstanding any law to the contrary, and in  accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget and
 upon  consultation  with  the  state university chancellor or his or her
 designee, on or before March 31, 2020, up to $6,500,000 from  the  state
 university  income  fund  general  revenue  account (22653) to the state
 general fund for debt service costs related to campus supported  capital
 project  costs  for  the  NY-SUNY  2020  challenge  grant program at the
 University at Albany.
   § 8. Notwithstanding any law to the  contrary,  the  state  university
 chancellor or his or her designee is authorized and directed to transfer
 estimated  tuition revenue balances from the state university collection
 fund (61000) to the  state  university  income  fund,  state  university
 general revenue offset account (22655) on or before March 31, 2020.
   §  9.  Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget, up
 to $1,017,062,300 from the general fund to the state  university  income
 fund, state university general revenue offset account (22655) during the
 period  of  July  1, 2019 through June 30, 2020 to support operations at
 the state university.
   § 10. Notwithstanding any law to the contrary, and in accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget, up
 to  $109,500,000  from  the  general fund to the state university income
 fund, state university general revenue offset account (22655) during the
 period of April 1, 2019 through June 30, 2019 to support  operations  at
 the state university.
   §  11. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized

 S. 1509--C                         172                        A. 2009--C

 and directed to transfer, upon request of the director of the budget, up
 to $20,000,000 from the general fund  to  the  state  university  income
 fund, state university general revenue offset account (22655) during the
 period  of  July  1,  2019 to June 30, 2020 to support operations at the
 state university in accordance with the maintenance of  effort  pursuant
 to  clause  (v)  of  subparagraph (4) of paragraph h of subdivision 2 of
 section 355 of the education law.
   § 12. Notwithstanding any law to the contrary, and in accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and  directed to transfer, upon request of the state university chancel-
 lor or his or her designee, up to $55,000,000 from the state  university
 income  fund,  state  university  hospitals  income reimbursable account
 (22656), for services and expenses of hospital  operations  and  capital
 expenditures at the state university hospitals; and the state university
 income  fund,  Long  Island  veterans' home account (22652) to the state
 university capital projects fund (32400) on or before June 30, 2020.
   § 13. Notwithstanding any law to the contrary, and in accordance  with
 section  4 of the state finance law, the comptroller, after consultation
 with the state university chancellor or his or her designee,  is  hereby
 authorized  and directed to transfer moneys, in the first instance, from
 the state university collection fund, Stony  Brook  hospital  collection
 account (61006), Brooklyn hospital collection account (61007), and Syra-
 cuse  hospital collection account (61008) to the state university income
 fund, state university hospitals income reimbursable account (22656)  in
 the  event  insufficient  funds  are  available  in the state university
 income fund, state  university  hospitals  income  reimbursable  account
 (22656)  to  permit the full transfer of moneys authorized for transfer,
 to the general fund for payment of debt  service  related  to  the  SUNY
 hospitals.  Notwithstanding  any law to the contrary, the comptroller is
 also hereby authorized and directed, after consultation with  the  state
 university  chancellor  or  his or her designee, to transfer moneys from
 the state university income fund to the state  university  income  fund,
 state  university  hospitals  income reimbursable account (22656) in the
 event insufficient funds are available in the  state  university  income
 fund,  state university hospitals income reimbursable account (22656) to
 pay hospital operating costs or to permit the full  transfer  of  moneys
 authorized for transfer, to the general fund for payment of debt service
 related to the SUNY hospitals on or before March 31, 2020.
   §  14.  Notwithstanding any law to the contrary, upon the direction of
 the director of the budget and the chancellor of the state university of
 New York or his or her designee, and in accordance with section 4 of the
 state finance law, the comptroller is hereby authorized and directed  to
 transfer  monies from the state university dormitory income fund (40350)
 to the state university residence hall rehabilitation fund (30100),  and
 from  the state university residence hall rehabilitation fund (30100) to
 the state university dormitory income fund (40350), in an amount not  to
 exceed $80 million from each fund.
   §  15. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer monies, upon request of  the  director  of  the
 budget,  on  or  before March 31, 2020, from and to any of the following
 accounts: the miscellaneous special revenue fund, patient income account
 (21909), the miscellaneous special revenue fund, mental hygiene  program
 fund  account  (21907),  the miscellaneous special revenue fund, federal
 salary sharing account (22056), or the general fund in any  combination,
 the aggregate of which shall not exceed $350 million.

 S. 1509--C                         173                        A. 2009--C
 
   §  16. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, at the request of the director of the  budget,
 up  to $650 million from the unencumbered balance of any special revenue
 fund  or  account,  agency  fund  or  account,  internal service fund or
 account, enterprise fund or account, or any combination  of  such  funds
 and  accounts,  to the general fund. The amounts transferred pursuant to
 this authorization shall be in addition to any other transfers expressly
 authorized in the 2019-20 budget. Transfers  from  federal  funds,  debt
 service  funds,  capital projects funds, the community projects fund, or
 funds that would result in the loss of eligibility for federal  benefits
 or federal funds pursuant to federal law, rule, or regulation as assent-
 ed  to in chapter 683 of the laws of 1938 and chapter 700 of the laws of
 1951 are not permitted pursuant to this authorization.
   § 16-a. Notwithstanding any law to the  contrary,  and  in  accordance
 with  section  4  of  the  state  finance law, the comptroller is hereby
 authorized and directed to transfer, at the request of the  director  of
 the  budget, up to eighteen million dollars ($18,000,000) from the unen-
 cumbered balance of any special revenue fund or account, or  combination
 of  funds  and  accounts,  to  the  community projects fund. The amounts
 transferred pursuant to this authorization shall be in addition  to  any
 other  transfers  expressly  authorized in the 2019-20 budget. Transfers
 from federal funds, debt services funds, capital project funds, or funds
 that would result in the loss of eligibility  for  federal  benefits  or
 federal  funds  pursuant to federal law, rule, or regulation as assented
 to in chapter 683 of the laws of 1938 and chapter 700  of  the  laws  of
 1951  are  not permitted pursuant to this authorization. The director of
 the budget shall (a) have received a request in writing from one or both
 houses of the legislature, and (b) notify both houses of the legislature
 in writing prior to initiating transfers pursuant to this authorization.
 The comptroller shall provide the director of the budget, the  chair  of
 the  senate  finance  committee,  and the chair of the assembly ways and
 means committee with an accurate accounting and report of any  transfers
 that  occur  pursuant  to this section on or before the fifteenth day of
 the following month in which such transfers occur.
   § 17. Notwithstanding any law to the contrary, and in accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and  directed to transfer, at the request of the director of the budget,
 up to $100 million from any non-general fund or account, or  combination
 of  funds and accounts, to the miscellaneous special revenue fund, tech-
 nology financing account (22207),  the  miscellaneous  capital  projects
 fund,  information  technology capital financing account (32215), or the
 centralized technology services account  (55069),  for  the  purpose  of
 consolidating  technology  procurement  and services. The amounts trans-
 ferred to the miscellaneous special revenue fund,  technology  financing
 account (22207) pursuant to this authorization shall be equal to or less
 than the amount of such monies intended to support information technolo-
 gy  costs  which  are attributable, according to a plan, to such account
 made in pursuance to an appropriation by law. Transfers to the technolo-
 gy financing account shall be completed from amounts collected  by  non-
 general  funds or accounts pursuant to a fund deposit schedule or perma-
 nent statute, and shall  be  transferred  to  the  technology  financing
 account  pursuant  to  a  schedule  agreed  upon  by the affected agency
 commissioner. Transfers from funds that would  result  in  the  loss  of
 eligibility  for  federal  benefits or federal funds pursuant to federal
 law, rule, or regulation as assented to in chapter 683 of  the  laws  of

 S. 1509--C                         174                        A. 2009--C
 
 1938  and  chapter 700 of the laws of 1951 are not permitted pursuant to
 this authorization.
   §  18. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, at the request of the director of the  budget,
 up  to $400 million from any non-general fund or account, or combination
 of funds and accounts, to the general fund for the  purpose  of  consol-
 idating  technology  procurement  and  services. The amounts transferred
 pursuant to this authorization shall be equal to or less than the amount
 of such monies intended to support information  technology  costs  which
 are attributable, according to a plan, to such account made in pursuance
 to  an  appropriation  by  law.  Transfers  to the general fund shall be
 completed from amounts collected by non-general funds or accounts pursu-
 ant to a fund deposit schedule.  Transfers from funds that would  result
 in  the loss of eligibility for federal benefits or federal funds pursu-
 ant to federal law, rule, or regulation as assented to in chapter 683 of
 the laws of 1938 and chapter 700 of the laws of 1951 are  not  permitted
 pursuant to this authorization.
   §  19. Notwithstanding any provision of law to the contrary, as deemed
 feasible and advisable by its trustees, the power authority of the state
 of New York is authorized and directed to transfer to the state treasury
 to the credit of the general fund $20,000,000 for the state fiscal  year
 commencing  April  1,  2019,  the  proceeds of which will be utilized to
 support energy-related state activities.
   § 20. Notwithstanding any provision of law, rule or regulation to  the
 contrary,  the  New York state energy research and development authority
 is authorized and directed to make the following  contributions  to  the
 state  treasury to the credit of the general fund on or before March 31,
 2020: (a) $913,000; and (b) $23,000,000 from proceeds collected  by  the
 authority from the auction or sale of carbon dioxide emission allowances
 allocated by the department of environmental conservation.
   §  21.  Subdivision  5  of section 97-rrr of the state finance law, as
 amended by section 22 of part BBB of chapter 59 of the laws of 2018,  is
 amended to read as follows:
   5. Notwithstanding the provisions of section one hundred seventy-one-a
 of  the  tax law, as separately amended by chapters four hundred eighty-
 one and four hundred eighty-four of the laws of nineteen hundred  eight-
 y-one,  and notwithstanding the provisions of chapter ninety-four of the
 laws of two thousand eleven, or any  other  provisions  of  law  to  the
 contrary,  during  the  fiscal  year beginning April first, two thousand
 [eighteen] NINETEEN, the state  comptroller  is  hereby  authorized  and
 directed  to  deposit  to the fund created pursuant to this section from
 amounts collected pursuant to article twenty-two  of  the  tax  law  and
 pursuant  to  a  schedule submitted by the director of the budget, up to
 [$2,458,909,000] $2,185,995,000, as may be certified in such schedule as
 necessary to meet the purposes of such fund for the fiscal  year  begin-
 ning April first, two thousand [eighteen] NINETEEN.
   §  22.  Notwithstanding  any  law  to the contrary, the comptroller is
 hereby authorized and directed to transfer, upon request of the director
 of the budget, on or before March 31, 2020, the following  amounts  from
 the  following  special  revenue  accounts  to the capital projects fund
 (30000), for the purposes of reimbursement to  such  fund  for  expenses
 related to the maintenance and preservation of state assets:
   1. $43,000 from the miscellaneous special revenue fund, administrative
 program account (21982).

 S. 1509--C                         175                        A. 2009--C
 
   2. $1,478,000 from the miscellaneous special revenue fund, helen hayes
 hospital account (22140).
   3. $366,000 from the miscellaneous special revenue fund, New York city
 veterans' home account (22141).
   4.  $513,000  from  the  miscellaneous  special revenue fund, New York
 state home for veterans' and their dependents at oxford account (22142).
   5. $159,000 from the miscellaneous special revenue fund,  western  New
 York veterans' home account (22143).
   6.  $323,000  from  the  miscellaneous  special revenue fund, New York
 state for veterans in the lower-hudson valley account (22144).
   7. $2,550,000 from the  miscellaneous  special  revenue  fund,  patron
 services account (22163).
   8.  $830,000  from the miscellaneous special revenue fund, long island
 veterans' home account (22652).
   9. $5,379,000 from  the  miscellaneous  special  revenue  fund,  state
 university general income reimbursable account (22653).
   10.  $112,556,000  from  the miscellaneous special revenue fund, state
 university revenue offset account (22655).
   11. $557,000  from  the  miscellaneous  special  revenue  fund,  state
 university of New York tuition reimbursement account (22659).
   12. $41,930,000 from the state university dormitory income fund, state
 university dormitory income fund (40350).
   13. $1,000,000 from the miscellaneous special revenue fund, litigation
 settlement and civil recovery account (22117).
   § 22-a. Intentionally omitted.
   §  23.  Notwithstanding  any  provision of law to the contrary, in the
 event that federal  legislation,  federal  regulatory  actions,  federal
 executive  actions  or  federal  judicial actions in federal fiscal year
 2020 reduce federal financial participation in Medicaid funding  to  New
 York  state  or its subdivisions by $850 million or more in state fiscal
 years 2019-20 or 2020-21, the director of the  division  of  the  budget
 shall  notify  the  temporary president of the senate and the speaker of
 the assembly in writing that the federal actions  will  reduce  expected
 funding  to  New  York state. The director of the division of the budget
 shall prepare a plan that shall be submitted to the  legislature,  which
 shall (a) specify the total amount of the reduction in federal financial
 participation  in Medicaid, (b) itemize the specific programs and activ-
 ities that will be  affected  by  the  reduction  in  federal  financial
 participation  in  Medicaid, and (c) identify the general fund and state
 special revenue fund appropriations and related disbursements that shall
 be reduced, and in what program  areas,  provided,  however,  that  such
 reductions  to appropriations and disbursements shall be applied equally
 and proportionally to the programs affected by the reduction in  federal
 financial  participation in Medicaid. Upon such submission, the legisla-
 ture shall have 90 days after such submission to either prepare its  own
 plan, which may be adopted by concurrent resolution passed by both hous-
 es,  or  if after 90 days the legislature fails to adopt their own plan,
 the reductions to the general fund and state special revenue fund appro-
 priations and related disbursements identified in the  division  of  the
 budget plan will go into effect automatically.
   §  24.  Notwithstanding  any  provision of law to the contrary, in the
 event that federal  legislation,  federal  regulatory  actions,  federal
 executive  actions  or  federal  judicial actions in federal fiscal year
 2020 reduce federal financial participation  or  other  federal  aid  in
 funding  to New York state that affects the state operating funds finan-
 cial plan by $850 million or more  in  state  fiscal  years  2019-20  or

 S. 1509--C                         176                        A. 2009--C
 
 2020-21, exclusive of any cuts to Medicaid, the director of the division
 of the budget shall notify the temporary president of the senate and the
 speaker  of the assembly in writing that the federal actions will reduce
 expected  funding to New York state. The director of the division of the
 budget shall prepare a plan that shall be submitted to the  legislature,
 which  shall  (a)  specify  the total amount of the reduction in federal
 aid, (b) itemize the specific  programs  and  activities  that  will  be
 affected by the federal reductions, exclusive of Medicaid, and (c) iden-
 tify  the general fund and state special revenue fund appropriations and
 related disbursements that shall be reduced, and in what program  areas,
 provided,  however, that such reductions to appropriations and disburse-
 ments shall be applied equally and proportionally. Upon such submission,
 the legislature shall have 90  days  after  such  submission  to  either
 prepare  its  own  plan,  which  may be adopted by concurrent resolution
 passed by both houses, or if after 90  days  the  legislature  fails  to
 adopt  their  own  plan,  the  reductions  to the general fund and state
 special revenue fund appropriations and related disbursements identified
 in the division of the budget plan will go into effect automatically.
   § 25. Intentionally omitted.
   § 26. Notwithstanding any  other  law,  rule,  or  regulation  to  the
 contrary, the state comptroller is hereby authorized and directed to use
 any  balance  remaining  in the mental health services fund debt service
 appropriation, after payment by the state comptroller of all obligations
 required pursuant to any lease, sublease, or other financing arrangement
 between the dormitory authority of the state of New York as successor to
 the New York state medical  care  facilities  finance  agency,  and  the
 facilities development corporation pursuant to chapter 83 of the laws of
 1995  and  the  department  of  mental hygiene for the purpose of making
 payments to the dormitory authority of the state of  New  York  for  the
 amount  of  the  earnings  for the investment of monies deposited in the
 mental health services fund that such agency determines will or may have
 to be rebated to the federal government pursuant to  the  provisions  of
 the  internal  revenue code of 1986, as amended, in order to enable such
 agency to maintain the exemption from federal  income  taxation  on  the
 interest paid to the holders of such agency's mental services facilities
 improvement  revenue  bonds.  Annually on or before each June 30th, such
 agency shall certify to the state comptroller its determination  of  the
 amounts  received  in the mental health services fund as a result of the
 investment of monies deposited therein that  will  or  may  have  to  be
 rebated  to  the  federal  government  pursuant to the provisions of the
 internal revenue code of 1986, as amended.
   § 27. Subdivision 1 of section 47 of section 1 of chapter 174  of  the
 laws  of  1968, constituting the New York state urban development corpo-
 ration act, as amended by section 31 of part BBB of chapter  59  of  the
 laws of 2018, is amended to read as follows:
   1.  Notwithstanding  the  provisions of any other law to the contrary,
 the dormitory authority and the corporation  are  hereby  authorized  to
 issue  bonds  or  notes in one or more series for the purpose of funding
 project costs for the office of information technology services, depart-
 ment of  law,  and  other  state  costs  associated  with  such  capital
 projects.  The  aggregate  principal  amount  of  bonds authorized to be
 issued pursuant to this section shall not  exceed  [five  hundred  forty
 million  nine  hundred  fifty-four  thousand]  SIX HUNDRED SEVENTY-SEVEN
 MILLION THREE HUNDRED FIFTY-FOUR THOUSAND dollars, $677,354,000  exclud-
 ing  bonds issued to fund one or more debt service reserve funds, to pay
 costs of issuance of such bonds, and bonds or notes issued to refund  or

 S. 1509--C                         177                        A. 2009--C
 
 otherwise  repay  such  bonds or notes previously issued. Such bonds and
 notes of the dormitory authority and the corporation shall not be a debt
 of the state, and the state shall not be liable thereon, nor shall  they
 be  payable  out of any funds other than those appropriated by the state
 to the dormitory authority and the corporation for principal,  interest,
 and  related  expenses pursuant to a service contract and such bonds and
 notes shall contain on the face thereof  a  statement  to  such  effect.
 Except  for  purposes  of  complying with the internal revenue code, any
 interest income earned on bond proceeds shall only be used to  pay  debt
 service on such bonds.
   § 28. Subdivision 1 of section 16 of part D of chapter 389 of the laws
 of  1997,  relating  to  the  financing  of  the correctional facilities
 improvement fund and the youth facility improvement fund, as amended  by
 section  32 of part BBB of chapter 59 of the laws of 2018, is amended to
 read as follows:
   1. Subject to the provisions of chapter 59 of the laws  of  2000,  but
 notwithstanding the provisions of section 18 of section 1 of chapter 174
 of the laws of 1968, the New York state urban development corporation is
 hereby  authorized  to  issue  bonds,  notes and other obligations in an
 aggregate principal amount  not  to  exceed  [eight  billion  eighty-two
 million  eight  hundred ninety-nine thousand] EIGHT BILLION FOUR HUNDRED
 NINETY-FOUR  MILLION  NINE   HUNDRED   SEVENTY-NINE   THOUSAND   dollars
 [$8,082,899,000]  $8,494,979,000, and shall include all bonds, notes and
 other obligations issued pursuant to chapter 56 of the laws of 1983,  as
 amended  or  supplemented.  The  proceeds  of such bonds, notes or other
 obligations shall be paid to the state, for deposit in the  correctional
 facilities capital improvement fund to pay for all or any portion of the
 amount  or  amounts paid by the state from appropriations or reappropri-
 ations made to the department of corrections and  community  supervision
 from  the  correctional  facilities capital improvement fund for capital
 projects. The aggregate amount of  bonds,  notes  or  other  obligations
 authorized  to  be  issued pursuant to this section shall exclude bonds,
 notes or other obligations issued to refund or  otherwise  repay  bonds,
 notes  or  other  obligations  theretofore issued, the proceeds of which
 were paid to the state for all or a portion of the amounts  expended  by
 the state from appropriations or reappropriations made to the department
 of  corrections  and community supervision; provided, however, that upon
 any such refunding or repayment the total aggregate principal amount  of
 outstanding bonds, notes or other obligations may be greater than [eight
 billion  eighty-two  million  eight  hundred ninety-nine thousand] EIGHT
 BILLION FOUR HUNDRED NINETY-FOUR MILLION NINE HUNDRED SEVENTY-NINE THOU-
 SAND dollars [$8,082,899,000] $8,494,979,000, only if the present  value
 of the aggregate debt service of the refunding or repayment bonds, notes
 or  other obligations to be issued shall not exceed the present value of
 the aggregate debt service of the bonds, notes or other  obligations  so
 to  be refunded or repaid. For the purposes hereof, the present value of
 the aggregate debt service of the refunding or repayment bonds, notes or
 other obligations and of the aggregate debt service of the bonds,  notes
 or  other  obligations  so  refunded  or  repaid, shall be calculated by
 utilizing the effective interest rate  of  the  refunding  or  repayment
 bonds,  notes  or other obligations, which shall be that rate arrived at
 by doubling the semi-annual  interest  rate  (compounded  semi-annually)
 necessary  to  discount  the  debt  service payments on the refunding or
 repayment bonds, notes or other obligations from the payment dates ther-
 eof to the date of issue of the refunding or repayment bonds,  notes  or
 other  obligations  and  to  the  price  bid including estimated accrued

 S. 1509--C                         178                        A. 2009--C
 
 interest or proceeds received by  the  corporation  including  estimated
 accrued interest from the sale thereof.
   §  29.  Paragraph  (a) of subdivision 2 of section 47-e of the private
 housing finance law, as amended by section 33 of part BBB of chapter  59
 of the laws of 2018, is amended to read as follows:
   (a) Subject to the provisions of chapter fifty-nine of the laws of two
 thousand,  in  order  to  enhance and encourage the promotion of housing
 programs and thereby achieve the stated purposes and objectives of  such
 housing  programs, the agency shall have the power and is hereby author-
 ized from time to time to issue negotiable  housing  program  bonds  and
 notes  in  such principal amount as shall be necessary to provide suffi-
 cient funds for the repayment of amounts disbursed (and  not  previously
 reimbursed)  pursuant  to law or any prior year making capital appropri-
 ations or reappropriations for the  purposes  of  the  housing  program;
 provided,  however, that the agency may issue such bonds and notes in an
 aggregate principal amount not exceeding  [$5,981,399,000  five  billion
 nine  hundred eighty-one million three hundred ninety-nine thousand] SIX
 BILLION ONE HUNDRED SEVENTY-EIGHT MILLION FIVE HUNDRED NINETY-NINE THOU-
 SAND dollars $6,178,599,000, plus a principal amount of bonds issued  to
 fund  the  debt service reserve fund in accordance with the debt service
 reserve fund requirement established by the agency and to fund any other
 reserves that the agency reasonably deems necessary for the security  or
 marketability  of  such bonds and to provide for the payment of fees and
 other charges and expenses, including  underwriters'  discount,  trustee
 and rating agency fees, bond insurance, credit enhancement and liquidity
 enhancement  related to the issuance of such bonds and notes. No reserve
 fund securing the housing program bonds shall be entitled or eligible to
 receive state funds apportioned or appropriated to maintain  or  restore
 such  reserve  fund at or to a particular level, except to the extent of
 any deficiency resulting directly or indirectly from a  failure  of  the
 state to appropriate or pay the agreed amount under any of the contracts
 provided for in subdivision four of this section.
   §  30.  Subdivision  (b)  of  section 11 of chapter 329 of the laws of
 1991, amending the state finance law and  other  laws  relating  to  the
 establishment of the dedicated highway and bridge trust fund, as amended
 by  section 34 of part BBB of chapter 59 of the laws of 2018, is amended
 to read as follows:
   (b) Any service contract or contracts for projects authorized pursuant
 to sections 10-c, 10-f, 10-g and 80-b of the  highway  law  and  section
 14-k of the transportation law, and entered into pursuant to subdivision
 (a)  of  this  section,  shall  provide for state commitments to provide
 annually to the thruway authority a sum or sums,  upon  such  terms  and
 conditions as shall be deemed appropriate by the director of the budget,
 to fund, or fund the debt service requirements of any bonds or any obli-
 gations  of  the  thruway  authority  issued to fund or to reimburse the
 state for  funding  such  projects  having  a  cost  not  in  excess  of
 [$10,251,939,000]  TEN  BILLION  SEVEN  HUNDRED THIRTY-NINE MILLION FOUR
 HUNDRED SEVENTY-EIGHT THOUSAND DOLLARS $10,739,478,000  cumulatively  by
 the end of fiscal year [2018-19] 2019-20.
   §  31.  Subdivision 1 of section 1689-i of the public authorities law,
 as amended by section 35 of part BBB of chapter 59 of the laws of  2018,
 is amended to read as follows:
   1.  The  dormitory  authority  is  authorized  to  issue bonds, at the
 request of the commissioner of education, to  finance  eligible  library
 construction projects pursuant to section two hundred seventy-three-a of
 the  education  law,  in  amounts  certified by such commissioner not to

 S. 1509--C                         179                        A. 2009--C
 
 exceed a total principal amount of [two hundred seventeen  million]  TWO
 HUNDRED THIRTY-ONE MILLION dollars $231,000,000.
   §  32.  Subdivision  (a)  of section 27 of part Y of chapter 61 of the
 laws of 2005, relating to providing for the  administration  of  certain
 funds  and  accounts  related  to  the  2005-2006  budget, as amended by
 section 36 of part BBB of chapter 59 of the laws of 2018, is amended  to
 read as follows:
   (a)  Subject  to the provisions of chapter 59 of the laws of 2000, but
 notwithstanding any provisions of law to the contrary, the urban  devel-
 opment  corporation  is hereby authorized to issue bonds or notes in one
 or  more  series  in  an  aggregate  principal  amount  not  to   exceed
 [$220,100,000  two  hundred  twenty  million  one  hundred thousand] TWO
 HUNDRED SEVENTY-ONE MILLION SIX HUNDRED THOUSAND  dollars  $271,600,000,
 excluding  bonds  issued  to  finance  one  or more debt service reserve
 funds, to pay costs of issuance of such bonds, and bonds or notes issued
 to refund or otherwise repay such bonds or notes previously issued,  for
 the  purpose  of financing capital projects including IT initiatives for
 the division of state police, debt service and leases; and to  reimburse
 the  state  general fund for disbursements made therefor. Such bonds and
 notes of such authorized issuer shall not be a debt of  the  state,  and
 the  state shall not be liable thereon, nor shall they be payable out of
 any funds other than those appropriated by the state to such  authorized
 issuer  for  debt  service  and related expenses pursuant to any service
 contract executed pursuant to subdivision (b) of this section  and  such
 bonds  and  notes  shall contain on the face thereof a statement to such
 effect. Except for purposes of complying with the internal revenue code,
 any interest income earned on bond proceeds shall only be  used  to  pay
 debt service on such bonds.
   §  33.  Section  44  of  section 1 of chapter 174 of the laws of 1968,
 constituting the New York state urban development  corporation  act,  as
 amended by section 37 of part BBB of chapter 59 of the laws  of 2018, is
 amended to read as follows:
   §  44.  Issuance  of  certain  bonds  or notes. 1. Notwithstanding the
 provisions of any other law to the contrary, the dormitory authority and
 the corporation are hereby authorized to issue bonds or notes in one  or
 more  series  for  the purpose of funding project costs for the regional
 economic development council  initiative,  the  economic  transformation
 program,  state university of New York college for nanoscale and science
 engineering, projects within the city of Buffalo  or  surrounding  envi-
 rons,  the  New  York  works economic development fund, projects for the
 retention of professional football in western New York, the empire state
 economic development fund, the  clarkson-trudeau  partnership,  the  New
 York  genome  center, the cornell university college of veterinary medi-
 cine, the olympic  regional  development  authority,  projects  at  nano
 Utica,  onondaga  county  revitalization projects, Binghamton university
 school of pharmacy, New York power electronics manufacturing consortium,
 regional infrastructure projects,  high  tech  innovation  and  economic
 development   infrastructure   program,  high  technology  manufacturing
 projects in Chautauqua and Erie county, an industrial scale research and
 development facility in Clinton county,  upstate  revitalization  initi-
 ative  projects,  downstate  revitalization  initiative, market New York
 projects, fairground buildings, equipment or facilities  used  to  house
 and  promote  agriculture,  the  state fair, the empire state trail, the
 moynihan station development project, the  Kingsbridge  armory  project,
 strategic  economic  development projects, the cultural, arts and public
 spaces fund, water infrastructure in the city  of  Auburn  and  town  of

 S. 1509--C                         180                        A. 2009--C

 Owasco,  a  life  sciences laboratory public health initiative, not-for-
 profit pounds, shelters and humane societies, arts and cultural  facili-
 ties  improvement  program,  restore  New York's communities initiative,
 heavy  equipment,  economic  development  and  infrastructure  projects,
 Roosevelt Island operating corporation capital projects, and other state
 costs associated with such projects. The aggregate principal  amount  of
 bonds  authorized to be issued pursuant to this section shall not exceed
 [eight billion three hundred million five hundred ninety thousand]  NINE
 BILLION  TWO  HUNDRED  ELEVEN  MILLION  SIX  HUNDRED THIRTY-SIX THOUSAND
 dollars $9,211,636,000, excluding bonds issued to fund one or more  debt
 service reserve funds, to pay costs of issuance of such bonds, and bonds
 or  notes issued to refund or otherwise repay such bonds or notes previ-
 ously issued. Such bonds and notes of the dormitory  authority  and  the
 corporation shall not be a debt of the state, and the state shall not be
 liable  thereon,  nor  shall they be payable out of any funds other than
 those appropriated by the state  to  the  dormitory  authority  and  the
 corporation  for principal, interest, and related expenses pursuant to a
 service contract and such bonds and notes  shall  contain  on  the  face
 thereof  a  statement  to  such effect. Except for purposes of complying
 with the internal revenue code,  any  interest  income  earned  on  bond
 proceeds shall only be used to pay debt service on such bonds.
   2.  Notwithstanding  any  other  provision  of law to the contrary, in
 order to assist the dormitory authority and the corporation in undertak-
 ing the financing for project costs for the regional  economic  develop-
 ment  council  initiative,  the  economic  transformation program, state
 university of New York college for nanoscale  and  science  engineering,
 projects  within  the  city  of Buffalo or surrounding environs, the New
 York works economic development fund,  projects  for  the  retention  of
 professional  football  in  western  New York, the empire state economic
 development fund, the clarkson-trudeau partnership, the New York  genome
 center, the cornell university college of veterinary medicine, the olym-
 pic  regional  development  authority,  projects at nano Utica, onondaga
 county revitalization projects, Binghamton university school of  pharma-
 cy,  New  York  power  electronics  manufacturing  consortium,  regional
 infrastructure projects, New York State Capital Assistance  Program  for
 Transportation,  infrastructure,  and  economic  development,  high tech
 innovation and economic development infrastructure program,  high  tech-
 nology  manufacturing  projects in Chautauqua and Erie county, an indus-
 trial scale research and development facility in Clinton county, upstate
 revitalization initiative projects, downstate revitalization initiative,
 market New York projects, fairground buildings, equipment or  facilities
 used  to house and promote agriculture, the state fair, the empire state
 trail, the moynihan station development project, the Kingsbridge  armory
 project, strategic economic development projects, the cultural, arts and
 public  spaces fund, water infrastructure in the city of Auburn and town
 of Owasco, a life sciences laboratory public health initiative, not-for-
 profit pounds, shelters and humane societies, arts and cultural  facili-
 ties  improvement  program,  restore  New York's communities initiative,
 heavy  equipment,  economic  development  and  infrastructure  projects,
 Roosevelt Island operating corporation capital projects, and other state
 costs associated with such projects the director of the budget is hereby
 authorized to enter into one or more service contracts with the dormito-
 ry  authority  and  the  corporation,  none of which shall exceed thirty
 years in duration, upon such terms and conditions as the director of the
 budget and the dormitory authority and the corporation agree, so  as  to
 annually  provide to the dormitory authority and the corporation, in the

 S. 1509--C                         181                        A. 2009--C
 
 aggregate, a sum not to exceed  the  principal,  interest,  and  related
 expenses required for such bonds and notes. Any service contract entered
 into  pursuant  to this section shall provide that the obligation of the
 state  to pay the amount therein provided shall not constitute a debt of
 the  state  within  the  meaning  of  any  constitutional  or  statutory
 provision  and  shall  be  deemed executory only to the extent of monies
 available and that no liability shall be incurred by  the  state  beyond
 the  monies  available for such purpose, subject to annual appropriation
 by the legislature. Any such contract or any payments made or to be made
 thereunder may be assigned and pledged by the  dormitory  authority  and
 the  corporation  as  security for its bonds and notes, as authorized by
 this section.
   § 34. Subdivision (a) of section 1 of part X of chapter 59 of the laws
 of 2004, authorizing the New York state  urban  development  corporation
 and  the  dormitory authority of the state of New York to issue bonds or
 notes, as amended by section 37-a of part BBB of chapter 59 of the  laws
 of 2018, is amended to read as follows:
   (a)  Subject  to the provisions of chapter 59 of the laws of 2000, but
 notwithstanding any other provision of law to the contrary, the New York
 State urban development corporation and the dormitory authority  of  the
 state  of  New York are hereby authorized to issue bonds or notes in one
 or  more  series  in  an  aggregate  principal  amount  not  to   exceed
 [$293,325,000] TWO HUNDRED FORTY-THREE MILLION THREE HUNDRED TWENTY-FIVE
 THOUSAND  DOLLARS $243,325,000, excluding bonds issued to finance one or
 more debt service reserve funds, to pay costs of issuance of such bonds,
 and bonds or notes issued to refund or otherwise  repay  such  bonds  or
 notes  previously  issued, for the purpose of financing projects cost of
 the Empire Opportunity Fund; Rebuilding the Empire State Through  Oppor-
 tunities  in  Regional  Economies  (RESTORE)  New  York Program; and the
 Community Capital Assistance Program authorized pursuant to  Part  T  of
 chapter  84 of the laws of 2002. Such bonds and notes of the corporation
 or the dormitory authority shall not be a debt of  the  state,  and  the
 state  shall not be liable thereon, nor shall they be payable out of any
 funds other than those appropriated by the state to the  corporation  or
 the  dormitory  authority for debt service and related expenses pursuant
 to any service contract executed pursuant to  subdivision  (b)  of  this
 section  and  such  bonds  and notes shall contain on the face thereof a
 statement to such effect.   Except for purposes of  complying  with  the
 internal revenue code, any interest income earned on bond proceeds shall
 only be used to pay debt service on such bonds. All of the provisions of
 the  New  York state urban development corporation act and the dormitory
 authority act relating to bonds and notes  which  are  not  inconsistent
 with  the  provisions of this section shall apply to obligations author-
 ized by this section, including but not limited to the power  to  estab-
 lish  adequate reserves therefor and to issue renewal notes or refunding
 bonds thereof. The issuance  of  any  bonds  or  notes  hereunder  shall
 further  be  subject  to the approval of the director of the division of
 the budget.
   § 35. Subdivision 3 of section 1285-p of the public  authorities  law,
 as  amended by section 38 of part BBB of chapter 59 of the laws of 2018,
 is amended to read as follows:
   3. The maximum amount of bonds that may be issued for the  purpose  of
 financing  environmental  infrastructure  projects  authorized  by  this
 section shall be [five  billion  one  hundred  forty-seven  million  two
 hundred  sixty  thousand]  FIVE BILLION SIX HUNDRED THIRTY-EIGHT MILLION
 TEN THOUSAND dollars $5,638,010,000, exclusive of bonds issued  to  fund

 S. 1509--C                         182                        A. 2009--C
 
 any debt service reserve funds, pay costs of issuance of such bonds, and
 bonds or notes issued to refund or otherwise repay bonds or notes previ-
 ously  issued.  Such  bonds  and notes of the corporation shall not be a
 debt  of the state, and the state shall not be liable thereon, nor shall
 they be payable out of any funds other than those  appropriated  by  the
 state  to the corporation for debt service and related expenses pursuant
 to any service contracts executed pursuant to subdivision  one  of  this
 section,  and  such  bonds and notes shall contain on the face thereof a
 statement to such effect.
   § 36.  Subdivision (a) of section 48 of part K of chapter  81  of  the
 laws  of  2002,  relating to providing for the administration of certain
 funds and accounts related  to  the  2002-2003  budget,  as  amended  by
 section  40 of part BBB of chapter 59 of the laws of 2018, is amended to
 read as follows:
   (a) Subject to the provisions of chapter 59 of the laws  of  2000  but
 notwithstanding  the  provisions  of section 18 of the urban development
 corporation act, the corporation is hereby authorized to issue bonds  or
 notes  in  one  or  more  series in an aggregate principal amount not to
 exceed [$253,000,000 two-hundred fifty-three million] TWO HUNDRED EIGHT-
 Y-SIX MILLION dollars $286,000,000, excluding bonds issued to  fund  one
 or  more  debt  service  reserve funds, to pay costs of issuance of such
 bonds, and bonds or notes issued to refund or otherwise repay such bonds
 or notes previously issued, for the purpose of financing  capital  costs
 related to homeland security and training facilities for the division of
 state  police, the division of military and naval affairs, and any other
 state agency, including the reimbursement of any disbursements made from
 the state capital projects fund, and is hereby authorized to issue bonds
 or notes in one or more series in an aggregate principal amount  not  to
 exceed  [$748,800,000,  seven  hundred forty-eight million eight hundred
 thousand] $952,800,000 NINE  HUNDRED  FIFTY-TWO  MILLION  EIGHT  HUNDRED
 THOUSAND  dollars,  excluding  bonds  issued  to  fund  one or more debt
 service reserve funds, to pay costs of issuance of such bonds, and bonds
 or notes issued to refund or otherwise repay such bonds or notes  previ-
 ously  issued, for the purpose of financing improvements to State office
 buildings  and  other  facilities  located  statewide,   including   the
 reimbursement  of any disbursements made from the state capital projects
 fund. Such bonds and notes of the corporation shall not be a debt of the
 state, and the state shall not be liable  thereon,  nor  shall  they  be
 payable  out  of any funds other than those appropriated by the state to
 the corporation for debt service and related expenses  pursuant  to  any
 service  contracts executed pursuant to subdivision (b) of this section,
 and such bonds and notes shall contain on the face thereof  a  statement
 to such effect.
   § 37. Subdivision 1 of section 386-b of the public authorities law, as
 amended  by section 41 of part BBB of chapter 59 of the laws of 2018, is
 amended to read as follows:
   1. Notwithstanding any other provision of law  to  the  contrary,  the
 authority, the dormitory authority and the urban development corporation
 are  hereby authorized to issue bonds or notes in one or more series for
 the purpose of financing peace bridge  projects  and  capital  costs  of
 state and local highways, parkways, bridges, the New York state thruway,
 Indian reservation roads, and facilities, and transportation infrastruc-
 ture   projects   including  aviation  projects,  non-MTA  mass  transit
 projects, and rail service preservation projects, including work  appur-
 tenant  and  ancillary  thereto. The aggregate principal amount of bonds
 authorized to be issued pursuant to this section shall not exceed  [four

 S. 1509--C                         183                        A. 2009--C

 billion  five  hundred  million dollars $4,500,000,000] FOUR BILLION SIX
 HUNDRED TWENTY-EIGHT MILLION  DOLLARS  $4,628,000,000,  excluding  bonds
 issued  to  fund one or more debt service reserve funds, to pay costs of
 issuance  of  such bonds, and to refund or otherwise repay such bonds or
 notes previously issued. Such bonds and  notes  of  the  authority,  the
 dormitory authority and the urban development corporation shall not be a
 debt  of the state, and the state shall not be liable thereon, nor shall
 they be payable out of any funds other than those  appropriated  by  the
 state  to  the authority, the dormitory authority and the urban develop-
 ment corporation for principal, interest, and related expenses  pursuant
 to a service contract and such bonds and notes shall contain on the face
 thereof  a  statement  to  such effect. Except for purposes of complying
 with the internal revenue code,  any  interest  income  earned  on  bond
 proceeds shall only be used to pay debt service on such bonds.
   §  38.  Paragraph  (c) of subdivision 19 of section 1680 of the public
 authorities law, as amended by section 42 of part BBB of chapter  59  of
 the laws of 2018, is amended to read as follows:
   (c) Subject to the provisions of chapter fifty-nine of the laws of two
 thousand,  the  dormitory  authority shall not issue any bonds for state
 university educational facilities purposes if the  principal  amount  of
 bonds to be issued when added to the aggregate principal amount of bonds
 issued  by  the  dormitory  authority  on and after July first, nineteen
 hundred eighty-eight for state university  educational  facilities  will
 exceed [thirteen billion one hundred seventy-eight million eight hundred
 sixty-four  thousand  dollars  $13,178,864,000]  THIRTEEN  BILLION EIGHT
 HUNDRED FORTY-ONE MILLION  EIGHT  HUNDRED  SIXTY-FOUR  THOUSAND  DOLLARS
 $13,841,864,000;  provided,  however,  that bonds issued or to be issued
 shall be excluded from such limitation if: (1) such bonds are issued  to
 refund   state   university  construction  bonds  and  state  university
 construction notes previously issued by the housing finance  agency;  or
 (2)  such  bonds  are  issued  to refund bonds of the authority or other
 obligations issued for state university educational facilities  purposes
 and  the  present  value  of the aggregate debt service on the refunding
 bonds does not exceed the present value of the aggregate debt service on
 the bonds refunded thereby; provided, further that upon certification by
 the director of the budget that the issuance of refunding bonds or other
 obligations issued between April first, nineteen hundred ninety-two  and
 March  thirty-first,  nineteen  hundred  ninety-three will generate long
 term economic benefits to the state, as  assessed  on  a  present  value
 basis,  such  issuance will be deemed to have met the present value test
 noted above. For purposes of this subdivision, the present value of  the
 aggregate  debt  service  of  the refunding bonds and the aggregate debt
 service of the bonds refunded, shall be calculated by utilizing the true
 interest cost of the refunding bonds, which shall be that  rate  arrived
 at  by doubling the semi-annual interest rate (compounded semi-annually)
 necessary to discount the debt service payments on the  refunding  bonds
 from  the  payment  dates  thereof to the date of issue of the refunding
 bonds to the purchase price of the refunding bonds,  including  interest
 accrued  thereon  prior  to  the  issuance thereof. The maturity of such
 bonds, other than bonds issued to refund outstanding  bonds,  shall  not
 exceed  the  weighted  average  economic life, as certified by the state
 university construction fund, of the facilities in connection with which
 the bonds are issued, and in any case not  later  than  the  earlier  of
 thirty  years  or  the  expiration of the term of any lease, sublease or
 other agreement relating  thereto;  provided  that  no  note,  including
 renewals  thereof,  shall mature later than five years after the date of

 S. 1509--C                         184                        A. 2009--C
 
 issuance of such note. The legislature reserves the right  to  amend  or
 repeal  such  limit, and the state of New York, the dormitory authority,
 the state university of New York, and the state university  construction
 fund are prohibited from covenanting or making any other agreements with
 or  for  the  benefit  of bondholders which might in any way affect such
 right.
   § 39. Paragraph (c) of subdivision 14 of section 1680  of  the  public
 authorities  law,  as amended by section 43 of part BBB of chapter 59 of
 the laws of 2018, is amended to read as follows:
   (c) Subject to the provisions of chapter fifty-nine of the laws of two
 thousand, (i) the dormitory authority shall  not  deliver  a  series  of
 bonds for city university community college facilities, except to refund
 or  to  be substituted for or in lieu of other bonds in relation to city
 university community college facilities pursuant to a resolution of  the
 dormitory  authority adopted before July first, nineteen hundred eighty-
 five or any resolution supplemental thereto, if the principal amount  of
 bonds  so  to  be  issued  when  added to all principal amounts of bonds
 previously issued by the dormitory authority for city university  commu-
 nity  college  facilities, except to refund or to be substituted in lieu
 of other bonds in relation to city university community college  facili-
 ties will exceed the sum of four hundred twenty-five million dollars and
 (ii)  the dormitory authority shall not deliver a series of bonds issued
 for city university facilities, including community college  facilities,
 pursuant  to a resolution of the dormitory authority adopted on or after
 July first, nineteen hundred eighty-five, except  to  refund  or  to  be
 substituted for or in lieu of other bonds in relation to city university
 facilities  and except for bonds issued pursuant to a resolution supple-
 mental to a resolution of the dormitory authority adopted prior to  July
 first, nineteen hundred eighty-five, if the principal amount of bonds so
 to  be  issued  when  added  to the principal amount of bonds previously
 issued pursuant to any such resolution, except bonds issued to refund or
 to be substituted for or in lieu of other  bonds  in  relation  to  city
 university facilities, will exceed [eight billion three hundred fourteen
 million  six  hundred  ninety-one thousand dollars $8,314,691,000] EIGHT
 BILLION SIX HUNDRED SEVENTY-FOUR MILLION TWO HUNDRED FIFTY-SIX  THOUSAND
 DOLLARS  $8,674,256,000.  The legislature reserves the right to amend or
 repeal such limit, and the state of New York, the  dormitory  authority,
 the  city  university,  and  the fund are prohibited from covenanting or
 making any other agreements with or for the benefit of bondholders which
 might in any way affect such right.
   § 40. Subdivision 10-a of section 1680 of the public authorities  law,
 as  amended by section 44 of part BBB of chapter 59 of the laws of 2018,
 is amended to read as follows:
   10-a. Subject to the provisions of chapter fifty-nine of the  laws  of
 two  thousand, but notwithstanding any other provision of the law to the
 contrary, the maximum amount of bonds and notes to be issued after March
 thirty-first, two thousand two, on behalf of the state, in  relation  to
 any  locally  sponsored community college, shall be [nine hundred sixty-
 eight million five hundred forty-two thousand dollars $968,542,000]  ONE
 BILLION  FIVE  MILLION  SIX HUNDRED TWO THOUSAND DOLLARS $1,005,602,000.
 Such amount shall be exclusive of bonds and notes  issued  to  fund  any
 reserve  fund  or funds, costs of issuance and to refund any outstanding
 bonds and notes, issued on behalf of the state, relating  to  a  locally
 sponsored community college.
   § 41. Subdivision 1 of section 17 of part D of chapter 389 of the laws
 of  1997,  relating  to  the  financing  of  the correctional facilities

 S. 1509--C                         185                        A. 2009--C
 
 improvement fund and the youth facility improvement fund, as amended  by
 section  45 of part BBB of chapter 59 of the laws of 2018, is amended to
 read as follows:
   1.  Subject  to  the provisions of chapter 59 of the laws of 2000, but
 notwithstanding the provisions of section 18 of section 1 of chapter 174
 of the laws of 1968, the New York state urban development corporation is
 hereby authorized to issue bonds, notes  and  other  obligations  in  an
 aggregate  principal  amount not to exceed [seven] EIGHT hundred [sixty-
 nine] FOUR million six hundred fifteen thousand dollars [($769,615,000)]
 $804,615,000, which  authorization  increases  the  aggregate  principal
 amount of bonds, notes and other obligations authorized by section 40 of
 chapter  309 of the laws of 1996, and shall include all bonds, notes and
 other obligations issued pursuant to chapter 211 of the laws of 1990, as
 amended or supplemented. The proceeds of  such  bonds,  notes  or  other
 obligations shall be paid to the state, for deposit in the youth facili-
 ties  improvement  fund,  to pay for all or any portion of the amount or
 amounts paid by the state from appropriations or  reappropriations  made
 to  the office of children and family services from the youth facilities
 improvement fund for capital projects. The aggregate  amount  of  bonds,
 notes  and  other  obligations  authorized to be issued pursuant to this
 section shall exclude bonds, notes or other obligations issued to refund
 or otherwise repay bonds, notes or other obligations theretofore issued,
 the proceeds of which were paid to the state for all or a portion of the
 amounts expended by the state from  appropriations  or  reappropriations
 made  to  the office of children and family services; provided, however,
 that upon any such refunding or repayment the total aggregate  principal
 amount  of  outstanding bonds, notes or other obligations may be greater
 than [seven] EIGHT hundred [sixty-nine] FOUR million six hundred fifteen
 thousand dollars [($769,615,000)]  $804,615,000,  only  if  the  present
 value of the aggregate debt service of the refunding or repayment bonds,
 notes  or  other  obligations  to be issued shall not exceed the present
 value of the aggregate debt service of the bonds, notes or  other  obli-
 gations  so to be refunded or repaid. For the purposes hereof, the pres-
 ent value of the aggregate debt service of the  refunding  or  repayment
 bonds,  notes  or other obligations and of the aggregate debt service of
 the bonds, notes or other obligations so refunded or  repaid,  shall  be
 calculated  by utilizing the effective interest rate of the refunding or
 repayment bonds, notes or other obligations, which shall  be  that  rate
 arrived  at  by doubling the semi-annual interest rate (compounded semi-
 annually) necessary to discount the debt service payments on the refund-
 ing or repayment bonds, notes or  other  obligations  from  the  payment
 dates  thereof to the date of issue of the refunding or repayment bonds,
 notes or other obligations and to  the  price  bid  including  estimated
 accrued interest or proceeds received by the corporation including esti-
 mated accrued interest from the sale thereof.
   §  42.  Paragraph  b  of  subdivision 2 of section 9-a of section 1 of
 chapter 392 of the laws of 1973, constituting the New York state medical
 care facilities finance agency act, as amended by section 46 of part BBB
 of chapter 59 of the laws of 2018, is amended to read as follows:
   b. The agency shall have power and is hereby authorized from  time  to
 time  to  issue negotiable bonds and notes in conformity with applicable
 provisions of the uniform commercial code in such principal  amount  as,
 in  the  opinion  of  the  agency, shall be necessary, after taking into
 account other moneys which may be available for the purpose, to  provide
 sufficient  funds  to  the  facilities  development  corporation, or any
 successor agency, for the financing or refinancing of or for the design,

 S. 1509--C                         186                        A. 2009--C
 
 construction, acquisition, reconstruction, rehabilitation or improvement
 of mental health services facilities pursuant to  paragraph  a  of  this
 subdivision,  the payment of interest on mental health services improve-
 ment  bonds and mental health services improvement notes issued for such
 purposes, the establishment of reserves to secure such bonds and  notes,
 the  cost  or  premium  of  bond insurance or the costs of any financial
 mechanisms which may be used to reduce the debt service  that  would  be
 payable  by the agency on its mental health services facilities improve-
 ment bonds and notes and all other expenditures of the  agency  incident
 to  and  necessary or convenient to providing the facilities development
 corporation, or any successor agency, with funds for  the  financing  or
 refinancing of or for any such design, construction, acquisition, recon-
 struction, rehabilitation or improvement and for the refunding of mental
 hygiene improvement bonds issued pursuant to section 47-b of the private
 housing  finance law; provided, however, that the agency shall not issue
 mental health services facilities improvement bonds  and  mental  health
 services  facilities  improvement notes in an aggregate principal amount
 exceeding [eight  billion  seven  hundred  seventy-eight  million  seven
 hundred eleven thousand] NINE BILLION THREE HUNDRED THIRTY-THREE MILLION
 THREE  HUNDRED  EIGHT  THOUSAND dollars $9,333,308,000, excluding mental
 health services facilities improvement bonds and mental health  services
 facilities  improvement notes issued to refund outstanding mental health
 services facilities improvement bonds and mental health services facili-
 ties improvement notes; provided, however, that upon any such  refunding
 or  repayment  of  mental  health  services facilities improvement bonds
 and/or mental health services facilities  improvement  notes  the  total
 aggregate principal amount of outstanding mental health services facili-
 ties  improvement  bonds  and mental health facilities improvement notes
 may be greater than [eight billion seven hundred  seventy-eight  million
 seven hundred eleven thousand dollars $8,778,711,000] NINE BILLION THREE
 HUNDRED  THIRTY-THREE  MILLION  THREE  HUNDRED  EIGHT  THOUSAND  DOLLARS
 $9,333,308,000, only if, except as hereinafter provided with respect  to
 mental  health  services  facilities  bonds  and  mental health services
 facilities notes issued  to  refund  mental  hygiene  improvement  bonds
 authorized  to  be  issued pursuant to the provisions of section 47-b of
 the private housing finance law, the present value of the aggregate debt
 service of the refunding or repayment  bonds  to  be  issued  shall  not
 exceed  the  present value of the aggregate debt service of the bonds to
 be refunded or repaid. For purposes hereof, the present  values  of  the
 aggregate  debt  service  of  the refunding or repayment bonds, notes or
 other obligations and of the aggregate debt service of the bonds,  notes
 or  other  obligations  so  refunded  or  repaid, shall be calculated by
 utilizing the effective interest rate  of  the  refunding  or  repayment
 bonds,  notes  or other obligations, which shall be that rate arrived at
 by doubling the semi-annual  interest  rate  (compounded  semi-annually)
 necessary  to  discount  the  debt  service payments on the refunding or
 repayment bonds, notes or other obligations from the payment dates ther-
 eof to the date of issue of the refunding or repayment bonds,  notes  or
 other  obligations  and  to  the  price  bid including estimated accrued
 interest or proceeds  received  by  the  authority  including  estimated
 accrued  interest  from  the  sale thereof. Such bonds, other than bonds
 issued to refund outstanding bonds, shall be scheduled to mature over  a
 term  not to exceed the average useful life, as certified by the facili-
 ties development corporation, of the projects for which  the  bonds  are
 issued,  and  in  any case shall not exceed thirty years and the maximum
 maturity of notes or any renewals thereof shall not  exceed  five  years

 S. 1509--C                         187                        A. 2009--C
 
 from  the  date of the original issue of such notes. Notwithstanding the
 provisions of this section, the agency shall have the power and is here-
 by authorized to issue mental  health  services  facilities  improvement
 bonds  and/or  mental  health  services  facilities improvement notes to
 refund outstanding mental hygiene improvement  bonds  authorized  to  be
 issued pursuant to the provisions of section 47-b of the private housing
 finance  law  and  the  amount  of  bonds issued or outstanding for such
 purposes shall not be included for purposes of determining the amount of
 bonds issued pursuant to this section. The director of the budget  shall
 allocate  the  aggregate principal authorized to be issued by the agency
 among the office of mental health, office for people with  developmental
 disabilities, and the office of alcoholism and substance abuse services,
 in  consultation with their respective commissioners to finance bondable
 appropriations previously approved by the legislature.
   § 43. Subdivision (a) of section 28 of part Y of  chapter  61  of  the
 laws  of  2005,  relating to providing for the administration of certain
 funds and accounts related  to  the  2005-2006  budget,  as  amended  by
 section  49 of part BBB of chapter 59 of the laws of 2018, is amended to
 read as follows:
   (a) Subject to the provisions of chapter 59 of the laws of  2000,  but
 notwithstanding  any  provisions  of  law  to  the contrary, one or more
 authorized issuers as defined by section 68-a of the state  finance  law
 are  hereby  authorized to issue bonds or notes in one or more series in
 an aggregate principal amount not to  exceed  [$67,000,000,  sixty-seven
 million]  NINETY-TWO MILLION dollars $92,000,000, excluding bonds issued
 to finance one or more debt service reserve funds, to pay costs of issu-
 ance of such bonds, and bonds or notes issued  to  refund  or  otherwise
 repay  such bonds or notes previously issued, for the purpose of financ-
 ing capital projects for public protection facilities in the Division of
 Military and Naval Affairs, debt service and leases;  and  to  reimburse
 the  state  general fund for disbursements made therefor. Such bonds and
 notes of such authorized issuer shall not be a debt of  the  state,  and
 the  state shall not be liable thereon, nor shall they be payable out of
 any funds other than those appropriated by the state to such  authorized
 issuer  for  debt  service  and related expenses pursuant to any service
 contract executed pursuant to subdivision (b) of this section  and  such
 bonds  and  notes  shall contain on the face thereof a statement to such
 effect. Except for purposes of complying with the internal revenue code,
 any interest income earned on bond proceeds shall only be  used  to  pay
 debt service on such bonds.
   § 44. Subdivision 1 of section 386-a of the public authorities law, as
 amended  by section 61 of part BBB of chapter 59 of the laws of 2018, is
 amended to read as follows:
   1. Notwithstanding any other provision of law  to  the  contrary,  the
 authority, the dormitory authority and the urban development corporation
 are  hereby authorized to issue bonds or notes in one or more series for
 the purpose of assisting the metropolitan  transportation  authority  in
 the  financing  of  transportation  facilities as defined in subdivision
 seventeen of section twelve hundred sixty-one of this chapter  OR  OTHER
 CAPITAL PROJECTS.  The aggregate principal amount of bonds authorized to
 be  issued  pursuant  to  this section shall not exceed [one billion six
 hundred ninety-four million  dollars  $1,694,000,000]  TWO  BILLION  ONE
 HUNDRED  SEVENTY-NINE  MILLION  EIGHT HUNDRED FIFTY-SIX THOUSAND DOLLARS
 $2,179,856,000, excluding bonds issued to fund one or more debt  service
 reserve  funds, to pay costs of issuance of such bonds, and to refund or
 otherwise repay such bonds or notes previously issued.  Such  bonds  and

 S. 1509--C                         188                        A. 2009--C
 
 notes  of  the authority, the dormitory authority and the urban develop-
 ment corporation shall not be a debt of the state, and the  state  shall
 not  be liable thereon, nor shall they be payable out of any funds other
 than  those  appropriated  by  the state to the authority, the dormitory
 authority and the urban development corporation for principal, interest,
 and related expenses pursuant to a service contract and such  bonds  and
 notes  shall  contain  on  the  face thereof a statement to such effect.
 Except for purposes of complying with the  internal  revenue  code,  any
 interest  income  earned on bond proceeds shall only be used to pay debt
 service on such bonds.
   § 45. Subdivision 1 of section 50 of section 1 of chapter 174  of  the
 laws  of  1968, constituting the New York state urban development corpo-
 ration act, as amended by section 42 of part XXX of chapter  59  of  the
 laws of 2017, is amended to read as follows:
   1.  Notwithstanding  the  provisions of any other law to the contrary,
 the dormitory authority and the urban development corporation are hereby
 authorized to issue bonds or notes in one or more series for the purpose
 of funding project costs undertaken by  or  on  behalf  of  special  act
 school  districts,  state-supported  schools  for  the  blind  and deaf,
 approved private special education schools, non-public schools, communi-
 ty centers, day care facilities, and other state costs  associated  with
 such  capital  projects. The aggregate principal amount of bonds author-
 ized to be issued pursuant to this section shall not exceed  [fifty-five
 million dollars] ONE HUNDRED TEN MILLION DOLLARS $110,000,000, excluding
 bonds  issued  to  fund  one  or more debt service reserve funds, to pay
 costs of issuance of such bonds, and bonds or notes issued to refund  or
 otherwise  repay  such  bonds or notes previously issued. Such bonds and
 notes of the dormitory authority and the urban  development  corporation
 shall  not  be  a  debt  of the state, and the state shall not be liable
 thereon, nor shall they be payable out of any  funds  other  than  those
 appropriated  by  the  state  to  the  dormitory authority and the urban
 development corporation for principal, interest,  and  related  expenses
 pursuant to a service contract and such bonds and notes shall contain on
 the  face  thereof  a  statement to such effect.  Except for purposes of
 complying with the internal revenue code, any interest income earned  on
 bond proceeds shall only be used to pay debt service on such bonds.
   §  46.  Section 1 of chapter 174 of the laws of 1968, constituting the
 New York state urban development corporation act, is amended by adding a
 new section 53 to read as follows:
   § 53. 1. NOTWITHSTANDING THE  PROVISIONS  OF  ANY  OTHER  LAW  TO  THE
 CONTRARY,  THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION
 ARE HEREBY AUTHORIZED TO ISSUE BONDS OR NOTES IN ONE OR MORE SERIES  FOR
 THE  PURPOSE  OF FUNDING PROJECT COSTS FOR THE ACQUISITION OF EQUIPMENT,
 INCLUDING BUT NOT LIMITED TO THE CREATION OR MODERNIZATION  OF  INFORMA-
 TION  TECHNOLOGY SYSTEMS AND RELATED RESEARCH AND DEVELOPMENT EQUIPMENT,
 HEALTH AND SAFETY EQUIPMENT, HEAVY EQUIPMENT AND MACHINERY, THE CREATION
 OR IMPROVEMENT OF SECURITY SYSTEMS, AND LABORATORY EQUIPMENT  AND  OTHER
 STATE COSTS ASSOCIATED WITH SUCH CAPITAL PROJECTS. THE AGGREGATE PRINCI-
 PAL  AMOUNT  OF  BONDS  AUTHORIZED TO BE ISSUED PURSUANT TO THIS SECTION
 SHALL NOT EXCEED NINETY-THREE  MILLION  DOLLARS  $93,000,000,  EXCLUDING
 BONDS  ISSUED  TO  FUND  ONE  OR MORE DEBT SERVICE RESERVE FUNDS, TO PAY
 COSTS OF ISSUANCE OF SUCH BONDS, AND BONDS OR NOTES ISSUED TO REFUND  OR
 OTHERWISE  REPAY  SUCH  BONDS OR NOTES PREVIOUSLY ISSUED. SUCH BONDS AND
 NOTES OF THE DORMITORY AUTHORITY AND THE URBAN  DEVELOPMENT  CORPORATION
 SHALL  NOT  BE  A  DEBT  OF THE STATE, AND THE STATE SHALL NOT BE LIABLE
 THEREON, NOR SHALL THEY BE PAYABLE OUT OF ANY  FUNDS  OTHER  THAN  THOSE

 S. 1509--C                         189                        A. 2009--C
 
 APPROPRIATED  BY  THE  STATE  TO  THE  DORMITORY AUTHORITY AND THE URBAN
 DEVELOPMENT CORPORATION FOR PRINCIPAL, INTEREST,  AND  RELATED  EXPENSES
 PURSUANT TO A SERVICE CONTRACT AND SUCH BONDS AND NOTES SHALL CONTAIN ON
 THE  FACE  THEREOF  A  STATEMENT  TO SUCH EFFECT. EXCEPT FOR PURPOSES OF
 COMPLYING WITH THE INTERNAL REVENUE CODE, ANY INTEREST INCOME EARNED  ON
 BOND PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH BONDS.
   2.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW TO THE CONTRARY, IN
 ORDER TO ASSIST THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPO-
 RATION IN UNDERTAKING THE FINANCING FOR PROJECT COSTS FOR  THE  ACQUISI-
 TION  OF EQUIPMENT, INCLUDING BUT NOT LIMITED TO THE CREATION OR MODERN-
 IZATION OF INFORMATION  TECHNOLOGY  SYSTEMS  AND  RELATED  RESEARCH  AND
 DEVELOPMENT  EQUIPMENT, HEALTH AND SAFETY EQUIPMENT, HEAVY EQUIPMENT AND
 MACHINERY, THE CREATION OR IMPROVEMENT OF SECURITY SYSTEMS, AND  LABORA-
 TORY  EQUIPMENT  AND  OTHER  STATE  COSTS  ASSOCIATED  WITH SUCH CAPITAL
 PROJECTS, THE DIRECTOR OF THE BUDGET IS HEREBY AUTHORIZED TO ENTER  INTO
 ONE OR MORE SERVICE CONTRACTS WITH THE DORMITORY AUTHORITY AND THE URBAN
 DEVELOPMENT  CORPORATION,  NONE  OF  WHICH  SHALL EXCEED THIRTY YEARS IN
 DURATION, UPON SUCH TERMS AND CONDITIONS AS THE DIRECTOR OF  THE  BUDGET
 AND THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION AGREE,
 SO  AS  TO  ANNUALLY  PROVIDE  TO  THE DORMITORY AUTHORITY AND THE URBAN
 DEVELOPMENT CORPORATION, IN THE AGGREGATE, A SUM NOT TO EXCEED THE PRIN-
 CIPAL, INTEREST, AND RELATED EXPENSES REQUIRED FOR SUCH BONDS AND NOTES.
 ANY SERVICE CONTRACT ENTERED INTO PURSUANT TO THIS SECTION SHALL PROVIDE
 THAT THE OBLIGATION OF THE STATE TO  PAY  THE  AMOUNT  THEREIN  PROVIDED
 SHALL  NOT  CONSTITUTE  A  DEBT  OF  THE STATE WITHIN THE MEANING OF ANY
 CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED EXECUTORY ONLY
 TO THE EXTENT OF  MONIES  AVAILABLE  AND  THAT  NO  LIABILITY  SHALL  BE
 INCURRED  BY  THE  STATE  BEYOND  THE MONIES AVAILABLE FOR SUCH PURPOSE,
 SUBJECT TO ANNUAL APPROPRIATION BY THE LEGISLATURE. ANY SUCH CONTRACT OR
 ANY PAYMENTS MADE OR TO BE MADE THEREUNDER MAY BE ASSIGNED  AND  PLEDGED
 BY  THE  DORMITORY  AUTHORITY  AND  THE URBAN DEVELOPMENT CORPORATION AS
 SECURITY FOR ITS BONDS AND NOTES, AS AUTHORIZED BY THIS SECTION.
   § 46-a. Subdivision 1 of section 49 of section 1 of chapter 174 of the
 laws of 1968, constituting the New York state urban  development  corpo-
 ration  act,  as  amended by section 50 of part BBB of chapter 59 of the
 laws of 2018, is amended to read as follows:
   1. Notwithstanding the provisions of any other law  to  the  contrary,
 the  dormitory  authority  and  the corporation are hereby authorized to
 issue bonds or notes in one or more series for the  purpose  of  funding
 project  costs  for the state and municipal facilities program and other
 state costs associated with such capital projects. The aggregate princi-
 pal amount of bonds authorized to be issued  pursuant  to  this  section
 shall  not  exceed two billion [three] FOUR hundred [twenty-three] THIR-
 TEEN million five hundred thousand dollars, excluding  bonds  issued  to
 fund one or more debt service reserve funds, to pay costs of issuance of
 such  bonds, and bonds or notes issued to refund or otherwise repay such
 bonds or notes previously issued. Such bonds and notes of the  dormitory
 authority  and the corporation shall not be a debt of the state, and the
 state shall not be liable thereon, nor shall they be payable out of  any
 funds  other  than  those  appropriated  by  the  state to the dormitory
 authority and the  corporation  for  principal,  interest,  and  related
 expenses  pursuant  to a service contract and such bonds and notes shall
 contain on the face thereof a  statement  to  such  effect.  Except  for
 purposes  of  complying  with  the  internal  revenue code, any interest
 income earned on bond proceeds shall only be used to pay debt service on
 such bonds.

 S. 1509--C                         190                        A. 2009--C
 
   § 47. Subdivision 2 and paragraph (a)  of  subdivision  4  of  section
 1680-q of the public authorities law, as added by section 4 of part B of
 chapter 57 of the laws of 2013, are amended to read as follows:
   2.  The  authority may, from and after April first, two thousand thir-
 teen, issue dormitory facility revenue bonds in an amount not to  exceed
 [nine  hundred forty-four] ONE BILLION THREE HUNDRED NINETY-FOUR million
 dollars. Notwithstanding any other rule or law, such bonds shall not  be
 a  debt  of  the state of New York or the state university nor shall the
 state or the state university be liable thereon, nor shall they be paya-
 ble out of any funds other than  those  of  the  authority  constituting
 dormitory  facilities  revenues. Such amount shall be exclusive of bonds
 and notes issued to fund any reserve fund or funds,  cost  of  issuance,
 original issue premium, and to refund any prior dormitory facility bonds
 or  any  dormitory  facility  revenue bonds. The authority and the state
 university are hereby authorized to enter into agreements  relating  to,
 among  other  things,  the acquisition of property or interests therein,
 the construction, reconstruction, rehabilitation, improvement, equipping
 and furnishing of dormitory facilities, the operation and maintenance of
 dormitory facilities, and the billing, collection  and  disbursement  of
 dormitory  facilities  revenues,  the  title to which has been conveyed,
 assigned or otherwise transferred to the authority pursuant to paragraph
 y of subdivision two of section three hundred fifty-five of  the  educa-
 tion  law.  In  no  event shall the state university have any obligation
 under the agreement to make payment with respect to, on account of or to
 pay dormitory facilities revenue bonds, and such bonds shall be  payable
 solely  from the dormitory facilities revenues assigned to the authority
 by the state university. No debt shall be contracted except  to  finance
 capital  works or purposes.  Notwithstanding any other provision of law,
 dormitory facility revenues shall not be deemed to be  revenues  of  the
 state.  Notwithstanding  any  other  rule or law, the state shall not be
 liable for any payments on any dormitory  facility  revenue  bonds,  and
 such bonds shall not be a debt of the state and shall not be payable out
 of  any  funds  other than the dormitory facilities revenues assigned to
 the authority by the state university.
   (a) The dormitory authority, in consultation with the state university
 of New York, shall prepare an annual report due on September  thirtieth,
 commencing  on  September  thirtieth,  two  thousand  fourteen, of every
 calendar year relating to the provisions of paragraph y  of  subdivision
 two  of  section three hundred fifty-five of the education law [as added
 by a chapter of the laws of  two  thousand  thirteen  which  added  this
 section];  subdivision  eight of section three hundred fifty-five of the
 education law [as amended by a chapter of the laws of two thousand thir-
 teen which added this section];  and  this  section.  The  report  shall
 include,  but  not  be  limited  to:  (i) the total dormitory facilities
 revenues assigned or otherwise transferred from the state university  of
 New York to the dormitory authority in the prior state university fiscal
 year  and the sum of such transfers made in the five prior fiscal years;
 (ii) the sum of monies, if any, transferred to the state  university  of
 New  York  from the dormitory facilities revenue fund in the prior state
 university fiscal year; (iii) a list of any increase in rents, fees  and
 other  charges  that  relate  to  dormitory  facilities  per  campus  to
 students; (iv) a summary of all costs associated with the  construction,
 reconstruction,   rehabilitation,  improvement,  equipping,  furnishing,
 repair, maintenance and operations  of  dormitory  facilities  that  the
 dormitory  authority  funded  with dormitory facilities revenues and the
 proceeds of dormitory facility revenue bonds; (v) a summary  and  justi-

 S. 1509--C                         191                        A. 2009--C
 
 fication  of  dormitory  authority  administrative  expenses  and  costs
 incurred related to the dormitory  facilities  revenue  fund;  (vi)  the
 issuance  amounts,  debt service costs and savings, if any, of all state
 university  of New York dormitory bonds issued prior to April first, two
 thousand thirteen and refinanced by the dormitory authority with  dormi-
 tory facility revenue bonds; (vii) total amount of debt service payments
 made  per  year on dormitory facility revenue bonds; and (viii) an esti-
 mated date when the dormitory authority will  reach  the  [nine  hundred
 forty-four million dollar] cap on dormitory facility revenue bonds.
   § 48. Paragraphs b and f of subdivision 3 of section 9 of section 1 of
 chapter  359 of the laws of 1968 constituting the facilities development
 corporation act, paragraph b as amended by chapter 236 of  the  laws  of
 2005  and  paragraph f as amended by chapter 58 of the laws of 1987, are
 amended and a new paragraph g is added to read as follows:
   b. All monies of the corporation  received  or  accepted  pursuant  to
 paragraph  a of this subdivision, other than appropriations and advances
 from the state and except as otherwise authorized or  provided  in  this
 section,  shall  be  paid to the commissioner of taxation and finance as
 agent of the corporation, who shall not commingle such monies  with  any
 other  monies.  Such  monies  shall be deposited in two or more separate
 bank accounts. One of such accounts, to which shall be credited (i)  all
 payments made on or after January 1, 1964, for the care, maintenance and
 treatment  of  patients  in  every mental hygiene facility, other than a
 community mental health and retardation facility, (ii) all payments made
 to the corporation as rentals, lease payments, permit fees or  otherwise
 under  any  lease,  sublease  or  agreement undertaken with respect to a
 community mental health and retardation facility or a current or  former
 mental  hygiene facility, (iii) all payments made to the corporation for
 the purchase of real property held by the corporation for the use of the
 department, other than payments derived from New York state medical care
 facilities finance  agency  financing  or  refinancing  of  the  design,
 construction,  acquisition,  reconstruction, rehabilitation, improvement
 or renovation of state operated  mental  hygiene  facilities,  (iv)  all
 income  from  investments  and (v) all monies received or to be received
 for the purposes of such account on a recurring basis, shall be  denomi-
 nated  the  "mental hygiene facilities improvement fund income account".
 The monies in any account shall be paid out  on  checks  signed  by  the
 commissioner  of  taxation and finance on requisition of the chairman of
 the corporation or of such other officer  or  employee  or  officers  or
 employees  as  the corporation shall authorize to make such requisition.
 All deposits of such money shall, if required  by  the  commissioner  of
 taxation  and finance or the directors of the corporation, be secured by
 obligations of the United States or of the state of a market value equal
 at all times to the amount of the deposit and all banks and trust compa-
 nies are authorized to give such security for such deposits. Any  moneys
 of  the  corporation not required for immediate use or disbursement may,
 at the discretion of the corporation, be invested by the commissioner of
 taxation and finance in accordance with the provisions of  section  98-a
 of the state finance law. [When the corporation is no longer required to
 make  any rental payments under any lease, sublease or agreement entered
 into with the state housing finance agency in effect as of the effective
 date of this  amendment  to  this  paragraph,  all  monies  received  or
 accepted  pursuant to paragraph a of this subdivision, other than appro-
 priations and advances from the state and except as otherwise authorized
 or provided in this section, shall be deposited into the  mental  health
 services  fund established by section 97-f of the state finance law. Any

 S. 1509--C                         192                        A. 2009--C

 monies remaining in  the  mental  hygiene  facilities  improvement  fund
 income  account  and  in  any rental reserve account created pursuant to
 paragraph c of subdivision 4 of this section, when such lease,  sublease
 or  agreement  is  no  longer in effect shall be deposited in the mental
 health services fund.] THE MENTAL HYGIENE  FACILITIES  IMPROVEMENT  FUND
 AND  THE  INCOME  ACCOUNT THEREIN SHALL REMAIN IN EXISTENCE UNTIL TERMI-
 NATED BY THE CORPORATION BY WRITTEN NOTICE TO THE COMMISSIONER OF  TAXA-
 TION AND FINANCE. ANY MONEYS ON DEPOSIT IN THE MENTAL HYGIENE FACILITIES
 IMPROVEMENT  FUND  OR THE INCOME ACCOUNT THEREIN UPON THE TERMINATION OF
 SAID FUND AND ACCOUNT SHALL BE TRANSFERRED BY THE COMMISSIONER OF  TAXA-
 TION  AND  FINANCE  TO  THE MENTAL HEALTH SERVICES FUND. THE CORPORATION
 SHALL NOT TERMINATE THE MENTAL HYGIENE FACILITIES IMPROVEMENT  FUND  AND
 THE  INCOME  ACCOUNT THEREIN UNTIL ALL MENTAL HEALTH SERVICES FACILITIES
 BONDS ISSUED PURSUANT TO: (I) THE NEW YORK STATE MEDICAL CARE FACILITIES
 FINANCE AGENCY ACT; (II) ARTICLE FIVE-C OF THE STATE  FINANCE  LAW;  AND
 (III)  ARTICLE  FIVE-F  OF  THE  STATE  FINANCE LAW AND PAYABLE FROM THE
 INCOME ACCOUNT AS DESCRIBED IN PARAGRAPH G OF THIS  SUBDIVISION  ARE  NO
 LONGER OUTSTANDING.
   f. The directors of the corporation shall from time to time, but in no
 event later than the fifteenth day of each month pay over to the commis-
 sioner  of taxation and finance and the state comptroller for deposit in
 the mental health services fund, all monies of the corporation in excess
 of the aggregate amount of money required to be maintained on deposit in
 the mental hygiene facilities improvement fund income  account  pursuant
 to  [paragraph]  PARAGRAPHS e AND G of this subdivision. Prior to making
 any such payment, the chairman of the corporation shall,  on  behalf  of
 the  directors, make and deliver to the governor and the director of the
 budget his certificate stating the aggregate amount to be maintained  on
 deposit in the mental hygiene facilities improvement fund income account
 to  comply in full with the provisions of [paragraph e] PARAGRAPHS E AND
 G of this subdivision.
   G. (1) IN ADDITION TO THE AMOUNT REQUIRED TO BE  MAINTAINED  BY  PARA-
 GRAPH E OF THIS SUBDIVISION, THERE SHALL BE ACCUMULATED AND SET ASIDE IN
 EACH  MONTH  IN  THE  MENTAL  HYGIENE FACILITIES IMPROVEMENT FUND INCOME
 ACCOUNT, ALL RECEIPTS ASSOCIATED WITH LOANS, LEASES AND OTHER AGREEMENTS
 WITH VOLUNTARY AGENCIES. THE CORPORATION SHALL  PROVIDE  THE  AMOUNT  OF
 SUCH  RECEIPTS  TO  BE  SET  ASIDE  TO  THE COMMISSIONER OF TAXATION AND
 FINANCE IN EACH MONTH.  (2) NO LATER THAN FIVE DAYS PRIOR TO THE EARLIER
 OF WHEN PAYMENT IS TO BE MADE ON BONDS ISSUED FOR MENTAL HEALTH SERVICES
 FACILITIES PURPOSES PURSUANT TO: (I) THE NEW  YORK  STATE  MEDICAL  CARE
 FACILITIES  FINANCE AGENCY ACT; (II) ARTICLE FIVE-C OF THE STATE FINANCE
 LAW; AND (III) ARTICLE FIVE-F OF THE STATE FINANCE LAW,  SUCH  SET-ASIDE
 RECEIPTS  SHALL  BE  TRANSFERRED  BY  THE  COMMISSIONER  OF TAXATION AND
 FINANCE AS AGENT OF THE CORPORATION FROM THE MENTAL  HYGIENE  FACILITIES
 IMPROVEMENT  FUND  INCOME  ACCOUNT IN THE AMOUNTS SET FORTH IN SCHEDULES
 PROVIDED BY THE CORPORATION TO THE COMMISSIONER OF TAXATION AND  FINANCE
 IN  THE  FOLLOWING  PRIORITY: FIRST, TO THE TRUSTEE APPOINTED BY THE NEW
 YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY FOR THE  BONDS  ISSUED
 PURSUANT  TO  THE  NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY
 ACT FOR BOTH VOLUNTARY AGENCY AND STATE PURPOSES TO PAY DEBT SERVICE AND
 OTHER CASH REQUIREMENTS DUE ON SUCH BONDS ON THE RELEVANT PAYMENT  DATE,
 SECOND,  ANY  REMAINING AMOUNT OF SUCH SET-ASIDE RECEIPTS TO THE TRUSTEE
 APPOINTED BY AUTHORIZED ISSUERS FOR THE BONDS ISSUED PURSUANT TO ARTICLE
 FIVE-C OF THE STATE FINANCE LAW TO  PAY  DEBT  SERVICE  AND  OTHER  CASH
 REQUIREMENTS  DUE  ON SUCH BONDS ON THE RELEVANT PAYMENT DATE AND THIRD,
 ANY REMAINING AMOUNT OF SUCH  SET-ASIDE  TO  THE  TRUSTEE  APPOINTED  BY

 S. 1509--C                         193                        A. 2009--C
 
 AUTHORIZED  ISSUERS  FOR  THE BONDS ISSUED PURSUANT TO ARTICLE FIVE-F OF
 THE STATE FINANCE LAW TO PAY DEBT SERVICE AND  OTHER  CASH  REQUIREMENTS
 DUE ON SUCH BONDS ON THE RELEVANT PAYMENT DATE.
   §  49.  Subdivisions 5 and 8 of section 97-f of the state finance law,
 subdivision 5 as amended by section 15 of part BBB of chapter 59 of  the
 laws  of  2018  and subdivision 8 as amended by section 59 of part HH of
 chapter 57 of the laws of 2013, are amended and a new subdivision  9  is
 added to read as follows:
   5. The comptroller shall from time to time, but in no event later than
 the  fifteenth  day  of  each  month, pay over for deposit in the mental
 hygiene general fund state operations account all moneys in  the  mental
 health  services  fund  in  excess of the amount of money required to be
 maintained on deposit in the mental health services fund. [The]  SUBJECT
 TO  SUBDIVISION  NINE  OF  THIS SECTION, THE amount required to be main-
 tained in such fund shall be (i) twenty percent of  the  amount  of  the
 next  payment  coming due relating to the mental health services facili-
 ties improvement program under  any  agreement  between  the  facilities
 development  corporation  and the New York state medical care facilities
 finance agency multiplied by the number of months from the date  of  the
 last  such  payment  with  respect  to payments under any such agreement
 required to be made semi-annually, plus (ii) those amounts specified  in
 any  such  agreement  with respect to payments required to be made other
 than semi-annually, including for variable  rate  bonds,  interest  rate
 exchange or similar agreements or other financing arrangements permitted
 by  law.   [Prior to making any such payment, the comptroller shall make
 and deliver to the director of the budget and the chairmen of the facil-
 ities development corporation and the New York state medical care facil-
 ities finance agency, a certificate stating the aggregate amount  to  be
 maintained  on  deposit  in the mental health services fund to comply in
 full with the provisions of this  subdivision.]  CONCURRENTLY  WITH  THE
 MAKING OF ANY SUCH PAYMENT, THE FACILITIES DEVELOPMENT CORPORATION SHALL
 DELIVER  TO THE COMPTROLLER, THE DIRECTOR OF THE BUDGET AND THE NEW YORK
 STATE MEDICAL CARE FACILITIES FINANCE AGENCY A CERTIFICATE  STATING  THE
 AGGREGATE  AMOUNT  TO  BE  MAINTAINED  ON  DEPOSIT  IN THE MENTAL HEALTH
 SERVICES FUND TO COMPLY IN FULL WITH THE PROVISIONS OF THIS SUBDIVISION.
   8. In addition to the amounts required to be maintained on deposit  in
 the  mental  health  services  fund pursuant to subdivision five of this
 section AND SUBJECT TO SUBDIVISION NINE OF THIS SECTION, the fund  shall
 maintain  on  deposit an amount equal to the debt service and other cash
 requirements on  mental  health  services  facilities  bonds  issued  by
 authorized  issuers  pursuant to sections sixty-eight-b and sixty-nine-n
 of this chapter. The amount required to be maintained in such fund shall
 be (i) twenty percent of the amount  of  the  next  payment  coming  due
 relating to mental health services facilities bonds issued by an author-
 ized issuer multiplied by the number of months from the date of the last
 such payment with respect to payments required to be made semi-annually,
 plus (ii) those amounts specified in any financing agreement between the
 issuer  and  the  state, acting through the director of the budget, with
 respect to payments  required  to  be  made  other  than  semi-annually,
 including  for  variable  rate  bonds, interest rate exchange or similar
 agreements or other financing arrangements permitted by law.  [Prior  to
 making  any  such payment, the comptroller shall make and deliver to the
 director of the budget and the chairmen of  the  facilities  development
 corporation and the New York state medical care facilities finance agen-
 cy,  a  certificate  stating  the  aggregate  amount to be maintained on
 deposit in the mental health services fund to comply in  full  with  the

 S. 1509--C                         194                        A. 2009--C

 provisions  of  this  subdivision.]  CONCURRENTLY WITH THE MAKING OF ANY
 SUCH PAYMENT, THE FACILITIES DEVELOPMENT CORPORATION  SHALL  DELIVER  TO
 THE  COMPTROLLER,  THE  DIRECTOR  OF  THE  BUDGET AND THE NEW YORK STATE
 MEDICAL  CARE FACILITIES FINANCE AGENCY A CERTIFICATE STATING THE AGGRE-
 GATE AMOUNT TO BE MAINTAINED ON DEPOSIT IN THE  MENTAL  HEALTH  SERVICES
 FUND TO COMPLY IN FULL WITH THE PROVISIONS OF THIS SUBDIVISION.
   No  later  than five days prior to the payment to be made by the state
 comptroller on such mental health services facilities bonds pursuant  to
 sections  ninety-two-z  and  ninety-two-h of this article, the amount of
 such payment shall be transferred by  the  state  comptroller  from  the
 mental  health services fund to the revenue bond tax fund established by
 section ninety-two-z of this article AND THE SALES TAX REVENUE BOND FUND
 ESTABLISHED BY SECTION NINETY-TWO-H OF THIS ARTICLE. The accumulation of
 moneys pursuant to this  subdivision  and  subsequent  transfer  to  the
 revenue  bond  tax  fund  AND  THE  SALES TAX REVENUE BOND FUND shall be
 subordinate in all respects to payments to be made to the New York state
 medical care facilities finance agency and to any pledge  or  assignment
 pursuant to subdivision six of this section.
   9.  IN DETERMINING THE AMOUNTS REQUIRED TO BE MAINTAINED IN THE MENTAL
 HEALTH SERVICES FUND UNDER SUBDIVISIONS FIVE AND EIGHT OF  THIS  SECTION
 IN  EACH MONTH, THE AMOUNT OF RECEIPTS ASSOCIATED WITH LOANS, LEASES AND
 OTHER AGREEMENTS WITH VOLUNTARY AGENCIES ACCUMULATED AND  SET  ASIDE  IN
 THE  MENTAL  HYGIENE  FACILITIES  IMPROVEMENT  FUND INCOME ACCOUNT UNDER
 PARAGRAPH G OF SUBDIVISION THREE  OF  SECTION  NINE  OF  THE  FACILITIES
 DEVELOPMENT  CORPORATION ACT SHALL BE TAKEN INTO ACCOUNT AS A CREDIT BUT
 ONLY IF SUCH CREDITING DOES NOT RESULT IN THE  AMOUNTS  REQUIRED  TO  BE
 MAINTAINED IN THE MENTAL HEALTH SERVICES FUND EXCLUSIVE OF ANY CREDIT TO
 BE  LESS THAN THE AMOUNT REQUIRED UNDER SUBDIVISION FIVE OF THIS SECTION
 IN EACH MONTH.
   § 49-a. Notwithstanding any provision of law to the contrary,  if  the
 financial  plan  required  under  sections twenty-two or twenty-three of
 this article estimates that the General Fund is  reasonably  anticipated
 to  end  the  fiscal year with an imbalance of $500 million or more, the
 director of the division of the budget shall prepare a plan  that  shall
 be  submitted  to the legislature, which shall identify the general fund
 and state special revenue fund  aid  to  localities  appropriations  and
 related  disbursements  that  may  be reduced to eliminate the imbalance
 identified in the  General  Fund,  provided,  however,  that  the  total
 reduction  in  disbursements identified in such plan shall not exceed an
 amount equal to 1.0 percent of estimated disbursements in state  operat-
 ing  funds for fiscal year 2019-2020. The legislature shall have 30 days
 after such submission to either prepare  its  own  plan,  which  may  be
 adopted  by  concurrent resolution passed by both houses and implemented
 by the division of the budget, of if after 30 days the legislature fails
 to adopt its own plan, the reductions to  the  general  fund  and  state
 special  revenue  fund  aid  to  localities  appropriations  and related
 disbursements identified in the division of the budget plan will go into
 effect automatically. To the extent  the  State  is  obligated  to  make
 payment  to  any  individual  or entity pursuant to any appropriation to
 which an adjustment or reduction is  applied  in  accordance  with  this
 section,  such obligation shall be reduced commensurate with any adjust-
 ments or reductions made by the director of the  budget  and/or  by  the
 legislature.  The following types of appropriations shall be exempt from
 reduction in any plan prepared by the budget director  and/or  any  plan
 adopted  by the legislature: (a) public assistance payments for families
 and individuals and payments  for  eligible  aged,  blind  and  disabled

 S. 1509--C                         195                        A. 2009--C
 
 persons related to supplemental social security; (b) any reductions that
 would  violate  federal  law;  (c)  payments of debt service and related
 expenses for which the state is constitutionally obligated to  pay  debt
 service or is contractually obligated to pay debt service, subject to an
 appropriation,  including  where  the state has a contingent contractual
 obligation; and (d) payments the state is obligated to make pursuant  to
 court  orders  or judgments. The provisions of this section shall expire
 after March 31, 2020.
   § 50. This act shall take effect immediately and shall  be  deemed  to
 have been in full force and effect on and after April 1, 2019; provided,
 however,  that the provisions of sections one, one-a, one-b, two, three,
 four, five, six, seven, eight,  thirteen,  fourteen,  fifteen,  sixteen,
 seventeen,  eighteen,  nineteen, twenty, twenty-two, twenty-three, twen-
 ty-four and forty-nine-a of this act shall expire March  31,  2020  when
 upon such date the provisions of such sections shall be deemed repealed.
 
                                 PART UUU
 
   Section  1.  Part II of a chapter of the laws of 2019 amending chapter
 141 of the laws of 1994 amending  the  legislative  law  and  the  state
 finance law relating to the operation and administration of the legisla-
 ture  relating  to extending such provisions, as proposed in legislative
 bill numbers S.1507-C and A.2007-C, is amended by adding a  new  section
 1-a to read as follows:
   §  1-A.  THIS  ACT SHALL NOT SUPERSEDE THE FINDINGS AND DETERMINATIONS
 MADE BY THE COMPENSATION COMMITTEE AS AUTHORIZED PURSUANT TO PART HHH OF
 CHAPTER 59 OF THE LAWS OF 2018 UNLESS A COURT OF COMPETENT  JURISDICTION
 DETERMINES  THAT  SUCH FINDINGS AND DETERMINATIONS ARE INVALID OR OTHER-
 WISE NOT APPLICABLE OR IN FORCE.
   § 2. This act shall take effect on the  same  date  and  in  the  same
 manner as  Part II of a chapter of the laws of 2019 amending chapter 141
 of  the  laws of 1994 amending the legislative law and the state finance
 law relating to the operation  and  administration  of  the  legislature
 relating  to  extending such provisions, as proposed in legislative bill
 numbers S.1507-C and A.2007-C, takes effect.
 
                                 PART VVV
 
   Section 1. Subdivision 7 of section 3 of part E of chapter 60  of  the
 laws  of  2015,  establishing  a commission on legislative, judicial and
 executive compensation, and providing for the powers and duties  of  the
 commission and for the dissolution of the commission, is amended to read
 as follows:
   7. The commission shall make a report to the governor, the legislature
 and  the chief judge of the state of its findings, conclusions, determi-
 nations and recommendations, if any, not later than the thirty-first  of
 December of the year in which the commission is established for judicial
 compensation and the fifteenth of November the following year for legis-
 lative  and executive compensation.  Any findings, conclusions, determi-
 nations and recommendations in the report must be adopted by a  majority
 vote  of  the  commission and [findings, conclusions, determinations and
 recommendations with respect to executive and legislative  compensation]
 shall  also  be  supported  by  at  least  one  member appointed by each
 appointing authority.  Each recommendation made to implement a  determi-
 nation  pursuant to section two of this act shall have the force of law,
 and shall supersede, where appropriate, inconsistent provisions of arti-

 S. 1509--C                         196                        A. 2009--C
 
 cle 7-B of the judiciary law, section 169  of  the  executive  law,  and
 sections  5 and 5-a of the legislative law, unless modified or abrogated
 by statute prior to April first of the year as to  which  such  determi-
 nation applies to judicial compensation and January first of the year as
 to which such determination applies to legislative and executive compen-
 sation.
   § 2. This act shall take effect immediately.
 
                                 PART WWW
 
   Section  1.  Section  17  of part F of chapter 60 of the laws of 2015,
 constituting the infrastructure investment act, as amended by section 14
 of part RRR of chapter 59 of the laws of 2017, is  amended  to  read  as
 follows:
   §  17.  This act shall take effect immediately and shall expire and be
 deemed repealed [4] 6 years after such  date,  provided  that,  projects
 with  requests  for  qualifications issued prior to such repeal shall be
 permitted to continue under this act notwithstanding such repeal.
   § 2. Section 12 of part H of chapter 58 of the laws of  2016,  consti-
 tuting  the  transformational  economic  development  infrastructure and
 revitalization projects act, is amended to read as follows:
   § 12. This act shall take effect immediately and shall expire  and  be
 deemed  repealed  [3]  5  years after such date, provided that, projects
 with requests for qualifications issued prior to such  repeal  shall  be
 permitted to continue under this act notwithstanding such repeal.
   § 3. This act shall take effect immediately.

                                 PART XXX
 
   Section  1. (a) Establishment of commission. The state shall establish
 a system of voluntary public campaign financing for statewide and  state
 legislative  public  offices.  There  is  hereby  established  a  public
 campaign financing and election commission to examine, evaluate and make
 recommendations for new laws with respect to how the State should imple-
 ment such a system of voluntary  public  campaign  financing  for  state
 legislative  and  statewide  public  offices, and what the parameters of
 such a program should be. The commission shall make its  recommendations
 in furtherance of the goals of incentivizing candidates to solicit small
 contributions,  reducing  the pressure on candidates to spend inordinate
 amounts of time raising large contributions  for  their  campaigns,  and
 encouraging qualified candidates to run for office. The commission shall
 also  review  and  recommend  changes  to  certain  aspects of the state
 election law as detailed herein.  The  commission's  report  is  due  by
 December  1,  2019 and shall have the full effect of law unless modified
 or abrogated by statute prior to December 22, 2019.
   (b) Members of commission. The commission shall be comprised  of  nine
 members,  two  of which shall be appointed by the governor, two of which
 shall be appointed by the senate majority leader, two of which shall  be
 appointed  by  the  speaker  of  the  assembly,  one  of  which shall be
 appointed by the senate minority leader,  and  one  of  which  shall  be
 appointed by the assembly minority leader. The governor, senate majority
 leader, and speaker of the assembly shall jointly appoint a ninth member
 to  serve  on  the commission. The commission shall not be fully consti-
 tuted without the appointment of the ninth member.  There  shall  be  no
 chairperson appointed, and the commission shall be governed by a majori-
 ty vote, and at all times the commission shall act with a quorum.

 S. 1509--C                         197                        A. 2009--C
 
   2.  The  commission  shall  specifically  determine  and  identify all
 details and components reasonably related to administration of a  public
 financing  program,  and  shall also specifically determine and identify
 new election laws in the following areas:
   (a) ratio of public matching funds to small contributions;
   (b)  limits  on  total receipt of public funds depending on the office
 sought by a candidate under the program,  including  geographic  differ-
 ences in such limits, if any;
   (c) candidate eligibility thresholds for the program;
   (d)  contribution limits applicable to candidates participating in the
 program;
   (e)  eligible  uses  of  matchable  contributions  and  public  funds;
 contributions  to  participating  candidates above the matchable portion
 shall be governed by election law § 14-130;
   (f) related conditions of compliance with the program;
   (g) an appropriate state agency to oversee administration and enforce-
 ment of the program, or recommendation of a new agency if the commission
 deems such recommendation appropriate;
   (h) resources necessary to administer and enforce the program;
   (i) effective date of the program;
   (j) rules  and  definitions  governing:  candidates'  eligibility  for
 public  financing; political party qualifications; multiple party candi-
 date nominations and/or designations; and  civil  violations  of  public
 financing rules.
   3.  The commission shall limit its recommendations to a public financ-
 ing program that has a total maximum annual fiscal cost of no more  than
 100 million dollars.
   4.  (a)  The commission shall only meet within the state and must hold
 at least one hearing at which the public will be afforded an opportunity
 to provide comments. The commission may hold additional public  hearings
 as  it deems necessary.  Such additional hearings, if any, may allow for
 an opportunity to provide public comments.
   (b) The members of the commission shall receive  no  compensation  for
 their  services but shall be allowed their actual and necessary expenses
 incurred in the performance of their duties hereunder. Nothing contained
 herein shall prohibit a member of the commission from receiving  his  or
 her salary earned by reason of their state employee position.
   (c) No member of the commission shall be disqualified from holding any
 other  public  office  or public employment, nor shall he or she forfeit
 any such public office or public employment by  reason  of  his  or  her
 appointment  pursuant to this section, notwithstanding the provisions of
 any general, special or local law, regulation, ordinance or  city  char-
 ter.  No  person  who  holds  a  party  position  shall be prohibited or
 disqualified from serving as a member of the commission.
   (d) To the maximum extent feasible, the commission shall  be  entitled
 to  request  and  receive  and  shall  utilize and be provided with such
 facilities, resources and  data  of  any  court,  department,  division,
 board,  bureau,  commission,  agency or public authority of the state or
 any political subdivision thereof as it may reasonably request to  prop-
 erly carry out its powers and duties pursuant to this act.
   (e)  The commission may request, and shall receive, reasonable assist-
 ance from state agency personnel as is necessary for the performance  of
 its  function, including legal guidance as is necessary from legislative
 and executive counsel.

 S. 1509--C                         198                        A. 2009--C
 
   5. The commission shall make a report to the governor and the legisla-
 ture of its findings, conclusions,  determinations  and  recommendations
 and shall submit such report by December 1, 2019.
   Any  findings,  conclusions, determinations and recommendations in the
 report must be adopted by a majority vote of the commission. Each member
 of the commission shall report their vote and describe  their  reasoning
 for their determination.
   The  commission  may  report  recommendations supported by a majority.
 Each recommendation made to implement a determination pursuant  to  this
 act shall have the force of law, and shall supersede, where appropriate,
 inconsistent provisions of the election law, unless modified or abrogat-
 ed by statute prior to December 22, 2019.
   §  2. If any clause, sentence, subdivision, paragraph, section or part
 of this act be adjudged by any court of  competent  jurisdiction  to  be
 invalid,  such  judgment  shall  not  affect,  impair  or invalidate the
 remainder thereof, but shall be confined in its operation to the clause,
 sentence, subdivision,  paragraph,  section  or  part  thereof  directly
 involved  in  the  controversy  in  which  such judgment shall have been
 rendered.
   § 3. This act shall take effect immediately. While any  recommendation
 contained within the commission's final report that is made to implement
 a  determination  pursuant  to this act shall remain law, the commission
 itself, as created herein, shall expire and be deemed  repealed  on  and
 after December 31, 2019.
 
                                 PART YYY
 
   Section 1. Paragraph e of subdivision 1 of section 211-d of the educa-
 tion  law, as amended by section 1 of part CCC of chapter 59 of the laws
 of 2018, is amended to read as follows:
   e. Notwithstanding paragraphs a and b of this  subdivision,  a  school
 district  that  submitted a contract for excellence for the two thousand
 eight--two thousand nine school year shall submit a contract for  excel-
 lence  for  the  two  thousand  nine--two  thousand  ten  school year in
 conformity with the requirements of subparagraph (vi) of paragraph a  of
 subdivision  two  of this section unless all schools in the district are
 identified as in good standing  and  provided  further  that,  a  school
 district  that  submitted a contract for excellence for the two thousand
 nine--two thousand ten school year, unless all schools in  the  district
 are  identified  as in good standing, shall submit a contract for excel-
 lence for the two thousand eleven--two thousand twelve school year which
 shall, notwithstanding the requirements of subparagraph  (vi)  of  para-
 graph  a of subdivision two of this section, provide for the expenditure
 of an amount which shall be not less than  the  product  of  the  amount
 approved  by the commissioner in the contract for excellence for the two
 thousand  nine--two  thousand  ten  school  year,  multiplied   by   the
 district's  gap  elimination  adjustment percentage and provided further
 that, a school district that submitted a contract for excellence for the
 two thousand eleven--two thousand twelve school year, unless all schools
 in the district are identified as  in  good  standing,  shall  submit  a
 contract  for excellence for the two thousand twelve--two thousand thir-
 teen school  year  which  shall,  notwithstanding  the  requirements  of
 subparagraph  (vi)  of  paragraph  a of subdivision two of this section,
 provide for the expenditure of an amount which shall be  not  less  than
 the  amount  approved by the commissioner in the contract for excellence
 for the  two  thousand  eleven--two  thousand  twelve  school  year  and

 S. 1509--C                         199                        A. 2009--C

 provided  further  that, a school district that submitted a contract for
 excellence for the two thousand  twelve--two  thousand  thirteen  school
 year,  unless  all  schools  in  the  district are identified as in good
 standing,  shall  submit  a contract for excellence for the two thousand
 thirteen--two thousand fourteen school year which shall, notwithstanding
 the requirements of subparagraph (vi) of paragraph a of subdivision  two
 of this section, provide for the expenditure of an amount which shall be
 not  less  than  the amount approved by the commissioner in the contract
 for excellence for the two thousand twelve--two thousand thirteen school
 year and provided further that,  a  school  district  that  submitted  a
 contract  for  excellence  for  the  two thousand thirteen--two thousand
 fourteen school year, unless all schools in the district are  identified
 as  in good standing, shall submit a contract for excellence for the two
 thousand  fourteen--two  thousand  fifteen  school  year  which   shall,
 notwithstanding  the requirements of subparagraph (vi) of paragraph a of
 subdivision two of this section,  provide  for  the  expenditure  of  an
 amount  which  shall be not less than the amount approved by the commis-
 sioner in the contract for excellence for the two thousand thirteen--two
 thousand fourteen school year;  and  provided  further  that,  a  school
 district  that  submitted a contract for excellence for the two thousand
 fourteen--two thousand fifteen school year, unless all  schools  in  the
 district are identified as in good standing, shall submit a contract for
 excellence  for  the  two  thousand fifteen--two thousand sixteen school
 year which shall, notwithstanding the requirements of subparagraph  (vi)
 of  paragraph  a  of  subdivision  two  of this section, provide for the
 expenditure of an amount  which  shall  be  not  less  than  the  amount
 approved  by the commissioner in the contract for excellence for the two
 thousand  fourteen--two  thousand  fifteen  school  year;  and  provided
 further  that a school district that submitted a contract for excellence
 for the two thousand fifteen--two thousand sixteen school  year,  unless
 all  schools  in  the district are identified as in good standing, shall
 submit a contract for excellence for the two thousand sixteen--two thou-
 sand seventeen school year which shall, notwithstanding the requirements
 of subparagraph (vi) of paragraph a of subdivision two of this  section,
 provide  for  the  expenditure of an amount which shall be not less than
 the amount approved by the commissioner in the contract  for  excellence
 for  the  two  thousand  fifteen--two  thousand sixteen school year; and
 provided further that, a school district that submitted a  contract  for
 excellence  for  the two thousand sixteen--two thousand seventeen school
 year, unless all schools in the  district  are  identified  as  in  good
 standing,  shall  submit  a contract for excellence for the two thousand
 seventeen--two thousand eighteen school year which shall,  notwithstand-
 ing  the requirements of subparagraph (vi) of paragraph a of subdivision
 two of this section, provide for the  expenditure  of  an  amount  which
 shall  be  not  less than the amount approved by the commissioner in the
 contract for excellence  for  the  two  thousand  sixteen--two  thousand
 seventeen  school year; and provided further that a school district that
 submitted a contract for excellence for the two thousand  seventeen--two
 thousand  eighteen  school  year, unless all schools in the district are
 identified as in good standing, shall submit a contract  for  excellence
 for  the  two thousand eighteen--two thousand nineteen school year which
 shall, notwithstanding the requirements of subparagraph  (vi)  of  para-
 graph  a of subdivision two of this section, provide for the expenditure
 of an amount which shall be not less than the  amount  approved  by  the
 commissioner  in the contract for excellence for the two thousand seven-
 teen--two thousand eighteen school year; AND PROVIDED  FURTHER  THAT,  A

 S. 1509--C                         200                        A. 2009--C
 
 SCHOOL  DISTRICT  THAT  SUBMITTED  A CONTRACT FOR EXCELLENCE FOR THE TWO
 THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR, UNLESS ALL SCHOOLS
 IN THE DISTRICT ARE IDENTIFIED AS  IN  GOOD  STANDING,  SHALL  SUBMIT  A
 CONTRACT  FOR  EXCELLENCE  FOR  THE  TWO THOUSAND NINETEEN--TWO THOUSAND
 TWENTY SCHOOL YEAR WHICH  SHALL,  NOTWITHSTANDING  THE  REQUIREMENTS  OF
 SUBPARAGRAPH  (VI)  OF  PARAGRAPH  A OF SUBDIVISION TWO OF THIS SECTION,
 PROVIDE FOR THE EXPENDITURE OF AN AMOUNT WHICH SHALL BE  NOT  LESS  THAN
 THE  AMOUNT  APPROVED BY THE COMMISSIONER IN THE CONTRACT FOR EXCELLENCE
 FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR.    For
 purposes  of this paragraph, the "gap elimination adjustment percentage"
 shall be calculated as the sum of one minus the quotient of the  sum  of
 the  school  district's  net gap elimination adjustment for two thousand
 ten--two thousand eleven computed pursuant to chapter fifty-three of the
 laws of two thousand ten,  making  appropriations  for  the  support  of
 government,  plus  the  school district's gap elimination adjustment for
 two thousand eleven--two thousand twelve as computed pursuant to chapter
 fifty-three of the laws of two thousand  eleven,  making  appropriations
 for  the  support  of the local assistance budget, including support for
 general support for public schools, divided by the total aid for adjust-
 ment computed pursuant to chapter fifty-three of the laws of  two  thou-
 sand  eleven,  making  appropriations  for  the local assistance budget,
 including support for general  support  for  public  schools.  Provided,
 further,  that  such  amount  shall  be expended to support and maintain
 allowable programs and activities approved in the two thousand nine--two
 thousand ten school  year  or  to  support  new  or  expanded  allowable
 programs and activities in the current year.
   §  2. Section 3614 of the education law, as added by section 4 of part
 CCC of chapter 59 of the laws of 2018, is amended to read as follows:
   § 3614. Statement of the total funding allocation. 1.  Notwithstanding
 any  provision  of  law,  rule or regulation to the contrary, commencing
 with the two thousand eighteen--two thousand nineteen  school  year  for
 school  districts which contain at least four schools as reported in the
 school report card database produced by the  commissioner  for  the  two
 thousand  sixteen--two  thousand seventeen school year and which receive
 at least fifty percent of total revenue from state aid  as  reported  in
 the  fiscal  profiles  master  files report produced by the commissioner
 concerning data on school district expenditures and revenues for the two
 thousand fifteen--two  thousand  sixteen  school  year  and  for  school
 districts  located in a city with a population of more than one million,
 and commencing with  the  two  thousand  nineteen--two  thousand  twenty
 school  year  for  school  districts containing at least four schools as
 reported in the school report card database produced by the commissioner
 for the two thousand sixteen--two thousand seventeen  school  year,  and
 commencing  with the two thousand twenty--two thousand twenty-one school
 year for all [other] school  districts  eligible  for  an  apportionment
 pursuant  to  subdivision four of section thirty-six hundred two of this
 part, such school districts shall annually submit  to  the  commissioner
 and  the director of the budget and shall make publicly available and on
 the district website a detailed statement of  the  total  funding  allo-
 cation  for  each  school in the district for the upcoming school budget
 year [prior to the first day of] ON OR BEFORE THE FRIDAY PRIOR TO  LABOR
 DAY OF such school year, provided that:
   a.  Such  statements shall be in a statewide uniform form developed by
 the director of the  budget,  in  consultation  with  the  commissioner,
 provided  that  when  preparing statements districts shall adhere to and
 complete the prescribed form accurately and fully, and provided  further

 S. 1509--C                         201                        A. 2009--C
 
 that the director of the budget shall request in such form only informa-
 tion  that  is  known  to,  or  may  be ascertained or estimated by, the
 district.  Provided, further, that each local educational  agency  shall
 include  in  such  statement the approach used to allocate funds to each
 school and that such statement shall include but not be limited to sepa-
 rate entries for  each  individual  school,  demographic  data  for  the
 school,  per  pupil funding level, source of funds, and uniform decision
 rules regarding allocation of centralized spending to individual schools
 from all funding sources.
   b. Within [thirty] FORTY-FIVE days of submission of such statement  by
 a  school  district,  the  commissioner and director of the budget shall
 review such statement and determine whether the  statement  is  complete
 and  is  in  the  format required by paragraph a of this subdivision. If
 such statement is determined to be complete and in the  format  required
 by  paragraph  a  of this subdivision, a written acknowledgement of such
 shall be sent to the school district. If no determination is made by the
 commissioner and the director of the budget within  [thirty]  FORTY-FIVE
 days  of  submission  of  the  statement, such statement shall be deemed
 approved. Should the commissioner or the director of the budget  request
 additional  information  from the school district to determine complete-
 ness, THE DISTRICT  SHALL  SUBMIT  SUCH  REQUESTED  INFORMATION  TO  THE
 COMMISSIONER  AND  THE DIRECTOR OF THE BUDGET WITHIN THIRTY DAYS OF SUCH
 REQUEST AND the COMMISSIONER AND THE DIRECTOR OF THE  BUDGET'S  deadline
 FOR  REVIEW  AND  DETERMINATION shall be extended by [thirty] FORTY-FIVE
 days from the date of submission of the  additional  requested  informa-
 tion.  If  the commissioner or director of the budget determine a school
 district's spending statement to be noncompliant, such  school  district
 shall be allowed to submit a revised spending statement at any time.
   c.  If  a school district fails to submit a statement that is complete
 and in the format required by paragraph a of this  subdivision  [by  the
 first  day]  ON  OR  BEFORE THE FRIDAY PRIOR TO LABOR DAY of such school
 year or if the commissioner or director  of  the  budget  determine  the
 school  district's  spending  statement  to  be  noncompliant, a written
 explanation shall be provided and the school district will  have  thirty
 days  to  cure. If the school district does not cure within thirty days,
 AT THE JOINT DIRECTION OF THE DIRECTOR OF THE BUDGET AND THE COMMISSION-
 ER, the comptroller of the city in which such school district  is  situ-
 ated,  or  if  the  city does not have an elected comptroller, the chief
 financial officer of the city, or for school districts not located in  a
 city,  the  chief financial officer of the town in which the majority of
 the school district is situated shall  be  authorized,  at  his  or  her
 discretion,  to obtain appropriate information from the school district,
 and shall be authorized to complete such form and submit such  statement
 to  the  director  of  the  budget  and the commissioner for approval in
 accordance with paragraph b of this subdivision. Where  the  comptroller
 or  chief financial officer exercises the authority to submit such form,
 such submission shall occur within sixty days following notification  of
 the  school  district's failure to cure. Nothing in this paragraph shall
 preclude a school district from  submitting  a  spending  statement  for
 approval by the director of the budget and the commissioner at any time.
   2.  Nothing  in  this  section shall alter or suspend statutory school
 district budget and voting or approval requirements.
   3. A. FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY  SCHOOL  YEAR
 AND  THEREAFTER, ANY SCHOOL DISTRICT THAT IS REQUIRED TO SUBMIT A STATE-
 MENT UNDER SUBDIVISION ONE OF THIS SECTION FOR THE  BASE  YEAR  WITH  AN
 UNDERFUNDED HIGH-NEED SCHOOL SHALL PRIORITIZE ALL SUCH UNDERFUNDED HIGH-

 S. 1509--C                         202                        A. 2009--C
 
 NEED  SCHOOLS  AMONG  ITS  INDIVIDUAL  SCHOOLS,  AND SHALL SUBMIT TO THE
 COMMISSIONER ON OR BEFORE SEPTEMBER FIRST OF THE CURRENT YEAR  A  REPORT
 SPECIFYING  HOW  SUCH  DISTRICT  EFFECTUATED APPROPRIATE FUNDING FOR THE
 UNDERFUNDED HIGH-NEED SCHOOLS.
   B. ON OR BEFORE MAY FIRST OF THE BASE YEAR, THE DIRECTOR OF THE BUDGET
 SHALL  PRODUCE  A  LIST  OF UNDERFUNDED HIGH-NEED SCHOOLS, AS DEFINED IN
 PARAGRAPH C OF THIS SUBDIVISION. PROVIDED, HOWEVER, THAT THE DIRECTOR OF
 THE BUDGET SHALL EXCLUDE FROM THIS LIST SCHOOLS WITHIN  DISTRICT  SEVEN-
 TY-FIVE OF THE CITY SCHOOL DISTRICT OF NEW YORK, SCHOOLS THAT ARE OF THE
 SAME  SCHOOL  TYPE  WITHIN  A DISTRICT BUT DO NOT SERVE ANY GRADE LEVELS
 THAT OVERLAP, SCHOOLS SERVING ONLY STUDENTS IN PREKINDERGARTEN,  OR  ANY
 OTHER SCHOOLS WITH IRREGULAR OR OUTLYING PROPERTIES.
   C. FOR PURPOSES OF THIS SUBDIVISION:
   (1)  "SCHOOL TYPE" FOR ANY SCHOOL SHALL MEAN ELEMENTARY, MIDDLE, HIGH,
 PRE-K ONLY, OR K-12, AS DEFINED BY THE COMMISSIONER, PROVIDED  THAT  FOR
 PURPOSES OF THIS SUBDIVISION, A "MIDDLE" SCHOOL SHALL INCLUDE ANY SCHOOL
 WITH  THE  GRADE ORGANIZATION OF EITHER A MIDDLE SCHOOL OR A JUNIOR HIGH
 SCHOOL, AND A "HIGH" SCHOOL SHALL INCLUDE  ANY  SCHOOL  WITH  THE  GRADE
 ORGANIZATION  OF  EITHER  A  SENIOR  HIGH SCHOOL OR A JUNIOR-SENIOR HIGH
 SCHOOL;
   (2) "UNDERFUNDED HIGH-NEED SCHOOL" SHALL MEAN A SCHOOL WITHIN A SCHOOL
 DISTRICT THAT HAS BEEN DEEMED BOTH A SIGNIFICANTLY HIGH-NEED SCHOOL  AND
 A SIGNIFICANTLY LOW FUNDED SCHOOL;
   (3)  "STUDENT  NEED  INDEX"  FOR  ANY  SCHOOL  SHALL MEAN THE QUOTIENT
 ARRIVED AT WHEN DIVIDING THE  WEIGHTED  STUDENT  ENROLLMENT  AS  DEFINED
 HEREIN  BY  THE  K-12  ENROLLMENT  FOR  THE BASE YEAR AS REPORTED ON THE
 STATEMENT REQUIRED PURSUANT TO THIS SECTION;
   (4) "AVERAGE STUDENT  NEED  INDEX  BY  SCHOOL  TYPE"  SHALL  MEAN  THE
 QUOTIENT ARRIVED AT WHEN DIVIDING THE SUM OF WEIGHTED STUDENT ENROLLMENT
 AS  DEFINED  HEREIN FOR ALL SCHOOLS WITHIN A SCHOOL DISTRICT OF THE SAME
 SCHOOL TYPE BY THE K-12 ENROLLMENT FOR THE BASE YEAR FOR ALL SCHOOLS  IN
 A  SCHOOL  DISTRICT OF THE SAME SCHOOL TYPE AS REPORTED ON THE STATEMENT
 REQUIRED PURSUANT TO THIS SECTION;
   (5) "WEIGHTED STUDENT ENROLLMENT" FOR ANY SCHOOL SHALL  MEAN  THE  SUM
 OF:   (A) K-12 ENROLLMENT PLUS (B) THE PRODUCT OF THE NUMBER OF STUDENTS
 ELIGIBLE TO RECEIVE FREE AND REDUCED PRICE LUNCH  MULTIPLIED  BY  SIXTY-
 FIVE ONE-HUNDREDTHS (0.65) PLUS (C) THE PRODUCT OF THE NUMBER OF ENGLISH
 LANGUAGE  LEARNERS MULTIPLIED BY ONE-HALF (0.5), PLUS (D) THE PRODUCT OF
 THE NUMBER OF STUDENTS WITH DISABILITIES MULTIPLIED BY ONE AND FORTY-ONE
 ONE-HUNDREDTHS (1.41), FOR THE BASE YEAR AS REPORTED  ON  THE  STATEMENT
 REQUIRED PURSUANT TO THIS SECTION;
   (6)  "SIGNIFICANTLY  HIGH-NEED  SCHOOL"  SHALL  MEAN  A  SCHOOL WITH A
 STUDENT NEED INDEX GREATER THAN THE PRODUCT OF THE AVERAGE STUDENT  NEED
 INDEX  BY  SCHOOL  TYPE WITHIN THE SCHOOL DISTRICT MULTIPLIED BY ONE AND
 FIVE ONE-HUNDREDTHS (1.05);
   (7) "PER PUPIL EXPENDITURES" FOR ANY SCHOOL SHALL  MEAN  THE  QUOTIENT
 ARRIVED AT WHEN DIVIDING THE EXPENDITURE AMOUNT AS REPORTED FOR THE BASE
 YEAR  IN  THE  STATEMENT  REQUIRED  PURSUANT  TO THIS SECTION, EXCLUDING
 EXPENDITURES  FOR  PREKINDERGARTEN  AND  PRESCHOOL   SPECIAL   EDUCATION
 PROGRAMS  AND  CENTRAL DISTRICT COSTS BY THE WEIGHTED STUDENT ENROLLMENT
 OF THE SCHOOL;
   (8) "AVERAGE PER PUPIL EXPENDITURES BY SCHOOL  TYPE"  SHALL  MEAN  THE
 QUOTIENT ARRIVED AT WHEN DIVIDING (A) THE SUM OF THE EXPENDITURE AMOUNTS
 REPORTED  FOR  THE  BASE YEAR IN THE STATEMENT REQUIRED PURSUANT TO THIS
 SECTION,  EXCLUDING  EXPENDITURES  FOR  PREKINDERGARTEN  AND   PRESCHOOL
 SPECIAL  EDUCATION  PROGRAMS AND CENTRAL DISTRICT COSTS, FOR ALL SCHOOLS

 S. 1509--C                         203                        A. 2009--C
 
 WITHIN A SCHOOL DISTRICT OF THE SAME SCHOOL TYPE  BY  (B)  THE  WEIGHTED
 STUDENT  ENROLLMENT  FOR  THE  BASE  YEAR  FOR  ALL  SCHOOLS IN A SCHOOL
 DISTRICT OF THE SAME SCHOOL TYPE AS REPORTED ON THE  STATEMENT  REQUIRED
 PURSUANT TO THIS SECTION;
   (9)  "SIGNIFICANTLY  LOW  FUNDED  SCHOOL" SHALL MEAN A SCHOOL WITHIN A
 SCHOOL DISTRICT THAT HAS PER PUPIL EXPENDITURES LESS THAN THE PRODUCT OF
 THE AVERAGE PER PUPIL EXPENDITURES BY  SCHOOL  TYPE  WITHIN  THE  SCHOOL
 DISTRICT MULTIPLIED BY NINETY-FIVE ONE-HUNDREDTHS (0.95).
   (10) "BASE YEAR" SHALL MEAN THE BASE YEAR AS DEFINED IN PARAGRAPH B OF
 SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART.
   (11)  "CURRENT  YEAR"  SHALL MEAN THE CURRENT YEAR AS DEFINED IN PARA-
 GRAPH A OF SUBDIVISION ONE OF SECTION THIRTY-SIX  HUNDRED  TWO  OF  THIS
 PART.
   §  3.  Paragraph  bb of subdivision 1 of section 3602 of the education
 law, as added by section 25 of part A of chapter 58 of the laws of 2011,
 is amended to read as follows:
   bb. "Personal income growth index" shall mean (1) for the two thousand
 twelve--two thousand thirteen school year, the average of the  quotients
 for  each  year in the period commencing with the two thousand five--two
 thousand six state fiscal year and finishing with the two thousand nine-
 -two thousand ten state fiscal year of the total personal income of  the
 state  for  each  such  year divided by the total personal income of the
 state for the immediately preceding state fiscal year, but not less than
 one [and], (2) for the  two  thousand  thirteen--two  thousand  fourteen
 [school year and each school year thereafter] THROUGH TWO THOUSAND NINE-
 TEEN--TWO  THOUSAND  TWENTY  SCHOOL  YEARS,  the  quotient  of the total
 personal income of the state for the state fiscal year one year prior to
 the state fiscal year in which the base year commenced  divided  by  the
 total  personal  income of the state for the immediately preceding state
 fiscal year, but not less than one AND (3) FOR THE TWO THOUSAND  TWENTY-
 -TWO  THOUSAND  TWENTY-ONE  SCHOOL YEAR AND EACH SCHOOL YEAR THEREAFTER,
 THE AVERAGE OF THE QUOTIENTS FOR EACH YEAR IN THE PERIOD COMMENCING WITH
 THE STATE FISCAL YEAR NINE YEARS PRIOR TO THE STATE FISCAL YEAR IN WHICH
 THE BASE YEAR BEGAN AND FINISHING WITH THE STATE FISCAL  YEAR  PRIOR  TO
 THE STATE FISCAL YEAR IN WHICH THE BASE YEAR BEGAN OF THE TOTAL PERSONAL
 INCOME  OF  THE  STATE  FOR EACH SUCH YEAR DIVIDED BY THE TOTAL PERSONAL
 INCOME OF THE STATE FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR, BUT
 NOT LESS THAN ONE.
   § 4. Paragraph e of subdivision 4 of section  3602  of  the  education
 law,  as amended by section 9-b of part CCC of chapter 59 of the laws of
 2018, is amended to read as follows:
   e. Community schools aid set-aside. Each  school  district  shall  set
 aside from its total foundation aid computed for the current year pursu-
 ant to this subdivision an amount equal to the sum of (i) the amount, if
 any, set forth for such district as "COMMUNITY SCHL AID (BT1617)" in the
 data  file produced by the commissioner in support of the enacted budget
 for the two thousand sixteen--two thousand  seventeen  school  year  and
 entitled "SA161-7", (ii) the amount, if any, set forth for such district
 as  "COMMUNITY  SCHL INCR" in the data file produced by the commissioner
 in support of the executive budget request for the two  thousand  seven-
 teen--two  thousand  eighteen  school year and entitled "BT171-8", [and]
 (iii) the amount, if any, set forth  for  such  district  as  "COMMUNITY
 SCHOOLS  INCREASE"  in  the  data  file  produced by the commissioner in
 support of the executive budget for the two thousand eighteen--two thou-
 sand nineteen school year and entitled "BT181-9", AND (IV)  THE  AMOUNT,
 IF ANY, SET FORTH FOR SUCH DISTRICT AS "19-20 COMMUNITY SCHOOLS INCR" IN

 S. 1509--C                         204                        A. 2009--C
 
 THE  DATA  FILE PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE EXECUTIVE
 BUDGET FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND  TWENTY  SCHOOL  YEAR
 AND  ENTITLED  "BT192-0". Each school district shall use such "COMMUNITY
 SCHL AID (BT1617)" amount to support the transformation of school build-
 ings  into community hubs to deliver co-located or school-linked academ-
 ic, health, mental health, nutrition,  counseling,  legal  and/or  other
 services  to  students  and their families, including but not limited to
 providing a community school site coordinator, or to support other costs
 incurred  to  maximize  students'  academic  achievement.  Each   school
 district  shall  use  such  "COMMUNITY  SCHL INCR" amount to support the
 transformation of school buildings into community hubs to deliver co-lo-
 cated or school linked academic,  health,  mental  health  services  and
 personnel,  after-school programming, dual language programs, nutrition,
 counseling, legal and/or other services to students and their  families,
 including but not limited to providing a community school site coordina-
 tor  and  programs  for  English  language learners, or to support other
 costs incurred to  maximize  students'  academic  achievement,  provided
 however  that  a  school  district  whose  "COMMUNITY  SCHL INCR" amount
 exceeds one million dollars ($1,000,000) shall use an  amount  equal  to
 the  greater  of  one  hundred  fifty thousand dollars ($150,000) or ten
 percent of such "COMMUNITY SCHL INCR" amount to support such transforma-
 tion at schools with extraordinary high levels of student need as  iden-
 tified  by  the commissioner, subject to the approval of the director of
 the budget. Each school  district  shall  use  such  "COMMUNITY  SCHOOLS
 INCREASE"  to support the transformation of school buildings into commu-
 nity hubs to deliver  co-located  or  school  linked  academic,  health,
 mental  health  services  and  personnel, after-school programming, dual
 language programs, nutrition, counseling, legal and/or other services to
 students and their families, including but not limited  to  providing  a
 community  school  site  coordinator  and  programs for English language
 learners, or to support  other  costs  incurred  to  maximize  students'
 academic  achievement. EACH SCHOOL DISTRICT SHALL USE SUCH "19-20 COMMU-
 NITY SCHOOLS INCR" TO SUPPORT THE  TRANSFORMATION  OF  SCHOOL  BUILDINGS
 INTO  COMMUNITY  HUBS  TO  DELIVER CO-LOCATED OR SCHOOL LINKED ACADEMIC,
 HEALTH, MENTAL HEALTH SERVICES AND PERSONNEL, AFTER-SCHOOL  PROGRAMMING,
 DUAL  LANGUAGE PROGRAMS, NUTRITION, TRAUMA INFORMED SUPPORT, COUNSELING,
 LEGAL AND/OR OTHER SERVICES TO STUDENTS AND  THEIR  FAMILIES,  INCLUDING
 BUT  NOT  LIMITED  TO  PROVIDING A COMMUNITY SCHOOL SITE COORDINATOR AND
 PROGRAMS FOR ENGLISH  LANGUAGE  LEARNERS,  OR  TO  SUPPORT  OTHER  COSTS
 INCURRED TO MAXIMIZE STUDENTS' ACADEMIC ACHIEVEMENT.
   §  5. Subdivision 1 of section 3602 of the education law is amended by
 adding a new paragraph ii to read as follows:
   II. (1) "DIRECT CERTIFICATION COUNT" SHALL BE EQUAL TO THE  NUMBER  OF
 CHILDREN  ELIGIBLE  FOR  FREE  MEALS  OR  FREE MILK BASED ON INFORMATION
 OBTAINED DIRECTLY FROM THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE
 ADMINISTERING THE SUPPLEMENTAL  NUTRITION  ASSISTANCE  PROGRAM  AND  THE
 DEPARTMENT  OF  HEALTH  ADMINISTERING MEDICAID AND PROVIDING DATA AS PER
 THE UNITED  STATES  DEPARTMENT  OF  AGRICULTURE  MEDICAID  DEMONSTRATION
 PROJECT.
   (2)  "DIRECT CERTIFICATION ENROLLMENT" SHALL MEAN ENROLLMENT COLLECTED
 FOR PURPOSES OF THE DIRECT CERTIFICATION MATCHING PROCESS.
   (3) "DIRECT CERTIFICATION PERCENT" SHALL MEAN THE QUOTIENT ARRIVED  AT
 WHEN DIVIDING THE DIRECT CERTIFICATION COUNT BY THE DIRECT CERTIFICATION
 ENROLLMENT.
   (4)  "THREE-YEAR  DIRECT  CERTIFICATION  PERCENTAGE"  SHALL  MEAN  THE
 QUOTIENT OF: (A) THE SUM OF THE DIRECT CERTIFICATION COUNT FOR THE  BASE

 S. 1509--C                         205                        A. 2009--C
 
 YEAR,  PLUS  SUCH DIRECT CERTIFICATION COUNT COMPUTED FOR THE YEAR PRIOR
 TO THE BASE YEAR, PLUS SUCH DIRECT CERTIFICATION COUNT COMPUTED FOR  THE
 YEAR TWO YEARS PRIOR TO THE BASE YEAR, DIVIDED BY (B) THE DIRECT CERTIF-
 ICATION  ENROLLMENT  FOR  THE  BASE YEAR, PLUS SUCH DIRECT CERTIFICATION
 ENROLLMENT COMPUTED FOR THE YEAR PRIOR  TO  THE  BASE  YEAR,  PLUS  SUCH
 DIRECT CERTIFICATION ENROLLMENT COMPUTED FOR THE YEAR TWO YEARS PRIOR TO
 THE BASE YEAR.
   §  5-a.  Subdivision 1 of section 3602 of the education law is amended
 by adding a new paragraph jj to read as follows:
   JJ. "SMALL CITY SCHOOL DISTRICTS" SHALL MEAN ANY SCHOOL DISTRICTS THAT
 WERE DESIGNATED  AS  SMALL  CITY  SCHOOL  DISTRICTS  OR  CENTRAL  SCHOOL
 DISTRICTS  WHOSE  BOUNDARIES  INCLUDE  A PORTION OF A SMALL CITY FOR THE
 SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN  SUPPORT  OF
 THE  ENACTED  BUDGET FOR THE TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN
 SCHOOL YEAR AND ENTITLED "SA141-5".
   § 5-b. Subdivision 4 of section 3602 of the education law  is  amended
 by adding a new paragraph g to read as follows:
   G.  FOUNDATION  AID PAYABLE IN THE TWO THOUSAND NINETEEN--TWO THOUSAND
 TWENTY SCHOOL YEAR. NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRA-
 RY,  FOUNDATION  AID  PAYABLE IN THE TWO THOUSAND NINETEEN--TWO THOUSAND
 TWENTY SCHOOL YEAR SHALL EQUAL THE SUM OF (1) THE TOTAL  FOUNDATION  AID
 BASE  PLUS  (2) THE EXECUTIVE FOUNDATION AID INCREASE PLUS (3) THE POSI-
 TIVE DIFFERENCE, IF ANY, OF THE TOTAL FOUNDATION AID BASE AS  SET  FORTH
 ON  THE  SCHOOL  AID  COMPUTER  LISTING  PRODUCED BY THE COMMISSIONER IN
 SUPPORT OF THE TWO  THOUSAND  NINETEEN--TWO  THOUSAND  TWENTY  EXECUTIVE
 BUDGET  AND  ENTITLED "BT192-0" LESS THE TOTAL FOUNDATION AID BASE, PLUS
 (4) THE GREATER OF TIERS A THROUGH J.
   FOR THE PURPOSES OF THIS PARAGRAPH, "FOUNDATION AID  REMAINING"  SHALL
 MEAN  THE  POSITIVE  DIFFERENCE,  IF  ANY,  OF  (1) TOTAL FOUNDATION AID
 COMPUTED PURSUANT TO THIS SECTION LESS (2) THE TOTAL FOUNDATION AID BASE
 COMPUTED PURSUANT TO PARAGRAPH J OF SUBDIVISION ONE OF THIS SECTION.
   FOR THE PURPOSES OF THIS PARAGRAPH:
   (I) "TIER A" SHALL EQUAL THE GREATER OF  (A)  THE  DIFFERENCE  OF  THE
 PRODUCT  OF  THE  TOTAL  FOUNDATION  AID BASE MULTIPLIED BY SEVENTY-FIVE
 TEN-THOUSANDTHS (0.0075) LESS THE EXECUTIVE FOUNDATION AID  INCREASE  OR
 (B)  THE  PRODUCT OF THE EXECUTIVE FOUNDATION AID INCREASE MULTIPLIED BY
 FIVE ONE-HUNDREDTHS (0.05).
   (II) "TIER B" SHALL EQUAL THE  PRODUCT  OF  FOUNDATION  AID  REMAINING
 MULTIPLIED  BY  THE  TIER  B PERCENT. FOR PURPOSES OF THIS SUBPARAGRAPH,
 "TIER B PERCENT" SHALL MEAN (A) FOR A CITY SCHOOL  DISTRICT  IN  A  CITY
 WITH  A POPULATION OF ONE MILLION OR MORE, NINE THOUSAND ELEVEN HUNDRED-
 THOUSANDTHS (0.09011); (B) FOR A CITY SCHOOL DISTRICT IN A CITY  WITH  A
 POPULATION  OF  MORE  THAN  TWO HUNDRED FIFTY THOUSAND BUT LESS THAN ONE
 MILLION, AS OF THE MOST RECENT DECENNIAL CENSUS,  ONE-TENTH  (0.1);  (C)
 FOR  A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION OF MORE THAN TWO
 HUNDRED THOUSAND BUT LESS THAN TWO HUNDRED FIFTY  THOUSAND,  AS  OF  THE
 MOST  RECENT DECENNIAL CENSUS, SIX ONE-HUNDREDTHS (0.06); (D) FOR A CITY
 SCHOOL DISTRICT IN A CITY WITH A POPULATION OF  MORE  THAN  ONE  HUNDRED
 FIFTY THOUSAND BUT LESS THAN TWO HUNDRED THOUSAND, AS OF THE MOST RECENT
 DECENNIAL   CENSUS,  ONE  THOUSAND  THREE-HUNDRED  FIVE  TEN-THOUSANDTHS
 (0.1305); (E) FOR A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION  OF
 MORE  THAN  ONE  HUNDRED  TWENTY-FIVE THOUSAND BUT LESS THAN ONE HUNDRED
 FIFTY THOUSAND, AS OF THE MOST RECENT DECENNIAL CENSUS,  EIGHT  ONE-HUN-
 DREDTHS  (0.08);  AND  (6)  FOR  ALL OTHER SCHOOL DISTRICTS, ONE HUNDRED
 THIRTY-SEVEN TEN-THOUSANDTHS (0.0137).

 S. 1509--C                         206                        A. 2009--C
 
   (III) "TIER C" SHALL EQUAL, FOR ALL SCHOOL  DISTRICTS  WHERE  (A)  THE
 QUOTIENT ARRIVED AT WHEN DIVIDING THE TOTAL FOUNDATION AID BASE BY TOTAL
 FOUNDATION  AID IS LESS THAN FIVE-TENTHS (0.5), AND (B) THE PUPIL WEALTH
 RATIO FOR TOTAL FOUNDATION AID  COMPUTED  PURSUANT  TO  PARAGRAPH  A  OF
 SUBDIVISION  THREE  OF THIS SECTION IS LESS THAN ONE AND ONE-TENTH (1.1)
 OR THE DIFFERENCE OF THE COMBINED WEALTH RATIO FOR THE  BASE  YEAR  LESS
 THE  COMBINED  WEALTH RATIO FOR THE CURRENT YEAR IS GREATER THAN TWENTY-
 FIVE ONE-THOUSANDTHS (0.025), THE DIFFERENCE OF  THE  PRODUCT  OF  TOTAL
 FOUNDATION AID MULTIPLIED BY FIVE-TENTHS (0.5) LESS THE TOTAL FOUNDATION
 AID BASE.
   (IV) "TIER D" SHALL EQUAL, FOR SCHOOL DISTRICTS WHERE (A) THE QUOTIENT
 ARRIVED  AT  WHEN  DIVIDING  THE  PUBLIC  SCHOOL  DISTRICT ENROLLMENT AS
 COMPUTED PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION  FOR
 THE  BASE  YEAR BY SUCH ENROLLMENT FOR THE TWO THOUSAND EIGHT--TWO THOU-
 SAND NINE SCHOOL YEAR IS GREATER THAN ONE AND ONE-TENTH (1.1),  (B)  THE
 QUOTIENT  ARRIVED  AT  WHEN  DIVIDING THE ENGLISH LANGUAGE LEARNER COUNT
 COMPUTED PURSUANT TO PARAGRAPH O OF SUBDIVISION ONE OF THIS SECTION  FOR
 THE  BASE  YEAR  BY SUCH COUNT FOR THE TWO THOUSAND TWELVE--TWO THOUSAND
 THIRTEEN SCHOOL YEAR IS GREATER THAN ONE AND ONE-TENTH  (1.1),  (C)  THE
 QUOTIENT  ARRIVED AT WHEN DIVIDING THE DIFFERENCE OF THE COMBINED WEALTH
 RATIO COMPUTED PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH C  OF  SUBDIVI-
 SION  THREE  OF THIS SECTION FOR THE TWO THOUSAND FOURTEEN--TWO THOUSAND
 FIFTEEN SCHOOL YEAR LESS SUCH COMBINED WEALTH RATIO FOR THE CURRENT YEAR
 DIVIDED BY SUCH COMBINED WEALTH RATIO FOR THE TWO THOUSAND FOURTEEN--TWO
 THOUSAND FIFTEEN SCHOOL YEAR IS GREATER THAN ONE-TENTH  (0.1),  AND  (D)
 THE  PUPIL  WEALTH  RATIO  FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO
 PARAGRAPH A OF SUBDIVISION THREE OF THIS SECTION IS LESS  THAN  ONE  AND
 FOUR-TENTHS (1.4), THE PRODUCT OF FOUNDATION AID REMAINING MULTIPLIED BY
 TWENTY-FIVE ONE-THOUSANDTHS (0.025).
   (V)  "TIER E" SHALL EQUAL, FOR SCHOOL DISTRICTS WHERE (A) THE QUOTIENT
 ARRIVED AT WHEN  DIVIDING  THE  PUBLIC  SCHOOL  DISTRICT  ENROLLMENT  AS
 COMPUTED  PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION FOR
 THE BASE YEAR BY SUCH ENROLLMENT  FOR  THE  TWO  THOUSAND  THIRTEEN--TWO
 THOUSAND  FOURTEEN  SCHOOL  YEAR  IS  LESS  THAN ONE, (B) THE THREE-YEAR
 DIRECT CERTIFICATION PERCENTAGE AS DEFINED IN PARAGRAPH II  OF  SUBDIVI-
 SION  ONE  OF  THIS  SECTION  IS  GREATER THAN THIRTY-SIX ONE-HUNDREDTHS
 (0.36), AND (C) THE  QUOTIENT  ARRIVED  AT  WHEN  DIVIDING  THE  ENGLISH
 LANGUAGE  LEARNER  COUNT COMPUTED PURSUANT TO PARAGRAPH O OF SUBDIVISION
 ONE OF THIS SECTION FOR THE BASE YEAR BY SUCH COUNT FOR THE TWO THOUSAND
 THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR  IS  GREATER  THAN  ONE  AND
 THIRTY-FOUR  ONE-HUNDREDTHS  (1.34)  OR THE DIFFERENCE OF SUCH BASE YEAR
 PUPILS LESS SUCH PUPILS FOR THE  TWO  THOUSAND  SEVENTEEN--TWO  THOUSAND
 EIGHTEEN SCHOOL YEAR IS GREATER THAN ONE HUNDRED, THE PRODUCT OF FOUNDA-
 TION  AID  REMAINING  MULTIPLIED  BY  TWO  HUNDRED  FIVE TEN-THOUSANDTHS
 (0.0205).
   (VI) "TIER F" SHALL EQUAL, FOR SCHOOL DISTRICTS WHERE (A) THE QUOTIENT
 ARRIVED AT WHEN DIVIDING THE TOTAL FOUNDATION AID BASE BY TOTAL  FOUNDA-
 TION AID IS LESS THAN SEVENTY-FIVE ONE-HUNDREDTHS (0.75), (B) THE THREE-
 YEAR  DIRECT  CERTIFICATION  PERCENTAGE  AS  DEFINED  IN PARAGRAPH II OF
 SUBDIVISION ONE OF THIS SECTION  IS  GREATER  THAN  FORTY-FOUR  ONE-HUN-
 DREDTHS  (0.44),  AND  (C) THE THREE-YEAR AVERAGE FREE AND REDUCED PRICE
 LUNCH PERCENT FOR THE CURRENT YEAR COMPUTED PURSUANT TO PARAGRAPH  P  OF
 SUBDIVISION  ONE  OF  THIS  SECTION  IS GREATER THAN FIFTY-FIVE ONE-HUN-
 DREDTHS (0.55), THE POSITIVE DIFFERENCE, IF ANY, OF THE PRODUCT OF TOTAL
 FOUNDATION AID BASE MULTIPLIED BY TWO  HUNDRED  THIRTY-EIGHT  TEN-THOUS-
 ANDTHS (0.0238) LESS THE EXECUTIVE FOUNDATION AID INCREASE.

 S. 1509--C                         207                        A. 2009--C
 
   (VII)  "TIER  G" SHALL EQUAL, FOR SCHOOL DISTRICTS WHERE (A) THE PUPIL
 WEALTH RATIO FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO  PARAGRAPH  A
 OF  SUBDIVISION  THREE  OF THIS SECTION IS LESS THAN SEVEN-TENTHS (0.7),
 AND (B) THE QUOTIENT ARRIVED AT WHEN DIVIDING THE PUBLIC SCHOOL DISTRICT
 ENROLLMENT  FOR  THE  BASE  YEAR BY SUCH ENROLLMENT FOR THE TWO THOUSAND
 FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR IS GREATER THAN  OR  EQUAL  TO
 ONE  AND ONE ONE-HUNDREDTH (1.01), THE PRODUCT OF FOUNDATION AID REMAIN-
 ING MULTIPLIED BY TWO HUNDRED SEVENTY-SEVEN TEN-THOUSANDTHS (0.0277).
   (VIII) "TIER H" SHALL EQUAL, FOR SMALL CITY SCHOOL  DISTRICTS  DEFINED
 PURSUANT TO PARAGRAPH JJ OF SUBDIVISION ONE OF THIS SECTION, THE PRODUCT
 OF  THE  FOUNDATION AID REMAINING MULTIPLIED BY ONE THOUSAND ONE HUNDRED
 TWENTY-FOUR TEN-THOUSANDTHS (0.1124).
   (IX) "TIER I" SHALL EQUAL, FOR SMALL  CITY  SCHOOL  DISTRICTS  DEFINED
 PURSUANT TO PARAGRAPH JJ OF SUBDIVISION ONE OF THIS SECTION, THE PRODUCT
 OF  THE  TOTAL  FOUNDATION  AID  BASE  MULTIPLIED  BY TWO ONE-HUNDREDTHS
 (0.02).
   (X) "TIER J" SHALL EQUAL, FOR SCHOOL DISTRICTS  WITH  (A)  A  SPARSITY
 FACTOR  COMPUTED  PURSUANT  TO  PARAGRAPH  R  OF SUBDIVISION ONE OF THIS
 SECTION GREATER THAN ZERO, AND (B) A COMBINED  WEALTH  RATIO  FOR  TOTAL
 FOUNDATION  AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION THREE OF
 THIS SECTION LESS THAN OR EQUAL TO ONE AND FIVE-TENTHS (1.5), THE GREAT-
 ER OF (A) THE PRODUCT OF FOUNDATION AID REMAINING MULTIPLIED  BY  FORTY-
 EIGHT ONE-THOUSANDTHS (0.048) OR (B) THE PRODUCT OF THE TOTAL FOUNDATION
 AID BASE MULTIPLIED BY SEVENTY-FIVE TEN-THOUSANDTHS (0.0075).
   (XI)  THE  "EXECUTIVE  FOUNDATION  AID INCREASE" SHALL BE EQUAL TO THE
 DIFFERENCE OF (A) THE AMOUNTS SET FORTH  FOR  EACH  SCHOOL  DISTRICT  AS
 "FOUNDATION  AID"  UNDER  THE  HEADING  "2019-20  ESTIMATED AIDS" IN THE
 SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN  SUPPORT  OF
 THE EXECUTIVE BUDGET REQUEST FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND
 TWENTY SCHOOL YEAR AND ENTITLED "BT192-0" LESS (B) THE AMOUNTS SET FORTH
 FOR  EACH SCHOOL DISTRICT AS "FOUNDATION AID" UNDER THE HEADING "2018-19
 BASE YEAR AIDS" IN SUCH COMPUTER LISTING.
   § 5-c. Clause (ii) of subparagraph 2 of paragraph b of  subdivision  4
 of  section 3602 of the education law, as amended by section 9-b of part
 CCC of chapter 59 of the laws of 2018, is amended to read as follows:
   (ii)  Phase-in  foundation  increase  factor.  For  the  two  thousand
 eleven--two   thousand  twelve  school  year,  the  phase-in  foundation
 increase factor shall equal thirty-seven and  one-half  percent  (0.375)
 and  the phase-in due minimum percent shall equal nineteen and forty-one
 hundredths percent (0.1941), for the two thousand  twelve--two  thousand
 thirteen school year the phase-in foundation increase factor shall equal
 one and seven-tenths percent (0.017), for the two thousand thirteen--two
 thousand  fourteen  school  year the phase-in foundation increase factor
 shall equal (1) for a city school district in a city having a population
 of one  million  or  more,  five  and  twenty-three  hundredths  percent
 (0.0523) or (2) for all other school districts zero percent, for the two
 thousand fourteen--two thousand fifteen school year the phase-in founda-
 tion  increase  factor  shall  equal (1) for a city school district of a
 city having a population of one million or  more,  four  and  thirty-two
 hundredths  percent  (0.0432)  or (2) for a school district other than a
 city school district having a population of  one  million  or  more  for
 which  (A)  the  quotient  of  the positive difference of the foundation
 formula aid minus the foundation aid base computed pursuant to paragraph
 j of subdivision one of this section divided by the  foundation  formula
 aid  is greater than twenty-two percent (0.22) and (B) a combined wealth
 ratio less than thirty-five hundredths (0.35), seven percent  (0.07)  or

 S. 1509--C                         208                        A. 2009--C

 (3)  for  all  other  school  districts,  four and thirty-one hundredths
 percent (0.0431), and for the two thousand fifteen--two thousand sixteen
 school year the phase-in foundation increase factor shall equal: (1) for
 a  city  school district of a city having a population of one million or
 more,  thirteen  and  two  hundred  seventy-four   thousandths   percent
 (0.13274);  or  (2)  for  districts  where  the quotient arrived at when
 dividing (A) the product of the total  aidable  foundation  pupil  units
 multiplied  by  the  district's  selected  foundation aid less the total
 foundation aid base computed pursuant to paragraph j of subdivision  one
 of  this section divided by (B) the product of the total aidable founda-
 tion pupil units multiplied by the district's selected foundation aid is
 greater than nineteen percent (0.19), and where the district's  combined
 wealth  ratio  is  less  than  thirty-three hundredths (0.33), seven and
 seventy-five hundredths percent (0.0775); or (3) for any other  district
 designated  as  high  need pursuant to clause (c) of subparagraph two of
 paragraph c of subdivision six  of  this  section  for  the  school  aid
 computer  listing produced by the commissioner in support of the enacted
 budget for the two thousand seven--two thousand eight  school  year  and
 entitled  "SA0708",  four  percent  (0.04);  or  (4)  for  a city school
 district in a city having a population of one hundred twenty-five  thou-
 sand  or more but less than one million, fourteen percent (0.14); or (5)
 for school districts that were designated as small city school districts
 or central school districts whose boundaries  include  a  portion  of  a
 small  city  for the school aid computer listing produced by the commis-
 sioner in support of the enacted budget for the two thousand  fourteen--
 two  thousand  fifteen school year and entitled "SA1415", four and seven
 hundred fifty-one thousandths percent (0.04751); or (6)  for  all  other
 districts  one  percent  (0.01),  and  for the two thousand sixteen--two
 thousand seventeen school year  the  foundation  aid  phase-in  increase
 factor  shall  equal for an eligible school district the greater of: (1)
 for a city school district in a city with a population of one million or
 more, seven and seven hundred eighty four thousandths percent (0.07784);
 or (2) for a city school district in a city with a  population  of  more
 than two hundred fifty thousand but less than one million as of the most
 recent  federal  decennial  census,  seven  and three hundredths percent
 (0.0703); or (3) for a city school district in a city with a  population
 of  more than two hundred thousand but less than two hundred fifty thou-
 sand as of the most recent federal decennial census, six and seventy-two
 hundredths percent (0.0672); or (4) for a city school district in a city
 with a population of more than one hundred fifty thousand but less  than
 two hundred thousand as of the most recent federal decennial census, six
 and  seventy-four  hundredths percent (0.0674); or (5) for a city school
 district in a city with a population of more than  one  hundred  twenty-
 five  thousand  but  less than one hundred fifty thousand as of the most
 recent federal decennial census, nine and fifty-five hundredths  percent
 (0.0955); or (6) for school districts that were designated as small city
 school  districts or central school districts whose boundaries include a
 portion of a small city for the school aid computer listing produced  by
 the  commissioner  in support of the enacted budget for the two thousand
 fourteen--two thousand fifteen school year and entitled "SA141-5" with a
 combined wealth ratio less than one and four tenths (1.4), nine  percent
 (0.09),  provided,  however,  that  for  such  districts  that  are also
 districts designated as high need urban-suburban pursuant to clause  (c)
 of  subparagraph  two  of paragraph c of subdivision six of this section
 for the school aid computer listing  produced  by  the  commissioner  in
 support  of  the enacted budget for the two thousand seven--two thousand

 S. 1509--C                         209                        A. 2009--C
 
 eight school year and entitled "SA0708",  nine  and  seven  hundred  and
 nineteen  thousandths  percent  (0.09719);  or  (7) for school districts
 designated as high need rural pursuant to clause (c) of subparagraph two
 of  paragraph  c  of  subdivision six of this section for the school aid
 computer listing produced by the commissioner in support of the  enacted
 budget  for  the  two thousand seven--two thousand eight school year and
 entitled "SA0708", thirteen and six tenths percent (0.136); or  (8)  for
 school  districts  designated  as  high  need urban-suburban pursuant to
 clause (c) of subparagraph two of paragraph c of subdivision six of this
 section for the school aid computer listing produced by the commissioner
 in support of the enacted budget for the two thousand  seven--two  thou-
 sand  eight  school  year  and entitled "SA0708", seven hundred nineteen
 thousandths percent (0.00719); or (9)  for  all  other  eligible  school
 districts,  forty-seven  hundredths  percent  (0.0047), provided further
 that for the two thousand seventeen--two thousand eighteen  school  year
 the  foundation  aid increase phase-in factor shall equal (1) for school
 districts with a census 2000 poverty rate computed pursuant to paragraph
 q of subdivision one of this section equal to or greater than twenty-six
 percent (0.26), ten and three-tenths  percent  (0.103),  or  (2)  for  a
 school  district in a city with a population in excess of one million or
 more, seventeen and seventy-seven one-hundredths  percent  (0.1777),  or
 (3)  for a city school district in a city with a population of more than
 two hundred fifty thousand but less than one million,  as  of  the  most
 recent  decennial  census,  twelve  and  sixty-nine  hundredths  percent
 (0.1269) or (4) for a city school district in a city with  a  population
 of  more than one hundred fifty thousand but less than two hundred thou-
 sand, as of the most recent federal decennial census, ten  and  seventy-
 eight one hundredths percent (0.1078), or (5) for a city school district
 in  a  city with a population of more than one hundred twenty-five thou-
 sand but less than one hundred fifty thousand  as  of  the  most  recent
 federal decennial census, nineteen and one hundred eight one-thousandths
 percent  (0.19108),  or  (6) for a city school district in a city with a
 population of more than two hundred thousand but less than  two  hundred
 fifty  thousand  as of the most recent federal decennial census, ten and
 six-tenths percent (0.106), or (7) for all  other  districts,  four  and
 eighty-seven  one-hundredths  percent (0.0487), and for the two thousand
 [nineteen] TWENTY--two thousand  [twenty]  TWENTY-ONE  school  year  and
 thereafter  the commissioner shall annually determine the phase-in foun-
 dation increase factor subject to allocation pursuant to the  provisions
 of  subdivision eighteen of this section and any provisions of a chapter
 of the laws of New York as described therein.
   § 5-d. Subdivision 4 of section 3627 of the education law, as  amended
 by  section  42-b  of  part  CCC  of  chapter 59 of the laws of 2018, is
 amended to read as follows:
   4. Notwithstanding any other provision of law  to  the  contrary,  any
 expenditures for transportation provided pursuant to this section in the
 two  thousand thirteen--two thousand fourteen school year and thereafter
 and otherwise eligible for transportation aid  pursuant  to  subdivision
 seven of section thirty-six hundred two of this article shall be consid-
 ered  approved  transportation expenses eligible for transportation aid,
 provided further that for the two thousand thirteen--two thousand  four-
 teen  school year such aid shall be limited to eight million one hundred
 thousand dollars and for the two thousand fourteen--two thousand fifteen
 school year such aid shall be limited to the sum of twelve  million  six
 hundred  thousand  dollars plus the base amount and for the two thousand
 fifteen--two thousand sixteen school year [and thereafter]  THROUGH  TWO

 S. 1509--C                         210                        A. 2009--C
 
 THOUSAND  EIGHTEEN--TWO  THOUSAND NINETEEN SCHOOL YEAR such aid shall be
 limited to the sum of eighteen million eight hundred [and]  fifty  thou-
 sand  dollars  plus the base amount, AND FOR THE TWO THOUSAND NINETEEN--
 TWO THOUSAND TWENTY SCHOOL YEAR AND THEREAFTER SUCH AID SHALL BE LIMITED
 TO THE SUM OF NINETEEN MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS PLUS
 THE  BASE AMOUNT.  For purposes of this subdivision, "base amount" means
 the amount of transportation aid paid to the school district for expend-
 itures incurred in the two thousand twelve--two thousand thirteen school
 year for transportation that would have been eligible for  aid  pursuant
 to  this  section  had  this section been in effect in such school year,
 except that subdivision six of this section shall be deemed not to  have
 been  in  effect.  And  provided  further that the school district shall
 continue to annually expend for the transportation described in subdivi-
 sion one of this section at least the expenditures  used  for  the  base
 amount.
   §  6.  Paragraph  d  of subdivision 4 of section 3602 of the education
 law, as amended by section 9-b of part CCC of chapter 59 of the laws  of
 2018, is amended to read as follows:
   d.  For  the  two  thousand fourteen--two thousand fifteen through two
 thousand [eighteen] TWENTY-THREE--two  thousand  [nineteen]  TWENTY-FOUR
 school years a city school district of a city having a population of one
 million or more may use amounts apportioned pursuant to this subdivision
 for afterschool programs.
   § 7. Intentionally omitted.
   § 8. Intentionally omitted.
   § 9. Intentionally omitted.
   § 10. Intentionally omitted.
   § 10-a. Subdivisions 10 and 11 of section 3602-e of the education law,
 subdivision 10 as amended by section 26 of part YYY of chapter 59 of the
 laws  of  2017,  the  opening  paragraph of subdivision 10 as amended by
 section 15, subparagraphs (ii) and (iii) of paragraph b  of  subdivision
 10  as amended by section 16 and the closing paragraph of paragraph b of
 subdivision 10 as amended by section 17 of part CCC of chapter 59 of the
 laws of 2018 and subdivision 11 as amended by section 18 of part CCC  of
 chapter 59 of the laws of 2018, are amended to read as follows:
   10.  Universal  prekindergarten aid.  Notwithstanding any provision of
 law to the contrary,
   (i) for aid payable in  the  two  thousand  eight--two  thousand  nine
 school  year,  the  grant to each eligible school district for universal
 prekindergarten aid shall be computed pursuant to this subdivision, and
   (ii) for the two thousand nine--two  thousand  ten  and  two  thousand
 ten--two  thousand  eleven  school  years, each school district shall be
 eligible for a maximum grant equal  to  the  amount  computed  for  such
 school  district  for the base year in the electronic data file produced
 by the commissioner in support of the two  thousand  nine--two  thousand
 ten  education,  labor  and family assistance budget, provided, however,
 that in the case of a district implementing programs for the first  time
 or  implementing expansion programs in the two thousand eight--two thou-
 sand nine school year where such programs operate for a minimum of nine-
 ty days in any one school year as provided in  section  151-1.4  of  the
 regulations of the commissioner, for the two thousand nine--two thousand
 ten  and two thousand ten--two thousand eleven school years, such school
 district shall be eligible for a  maximum  grant  equal  to  the  amount
 computed  pursuant to paragraph a of subdivision nine of this section in
 the two thousand eight--two thousand nine school year, and

 S. 1509--C                         211                        A. 2009--C
 
   (iii) for the two thousand eleven--two  thousand  twelve  school  year
 each  school district shall be eligible for a maximum grant equal to the
 amount set forth for such school district as "UNIVERSAL PREKINDERGARTEN"
 under the heading "2011-12 ESTIMATED AIDS" in the  school  aid  computer
 listing  produced  by  the commissioner in support of the enacted budget
 for the 2011-12 school year and entitled "SA111-2", and
   (iv) for two thousand twelve--two thousand thirteen through two  thou-
 sand  sixteen--two  thousand seventeen school years each school district
 shall be eligible for a maximum grant equal to the greater  of  (A)  the
 amount set forth for such school district as "UNIVERSAL PREKINDERGARTEN"
 under  the  heading  "2010-11 BASE YEAR AIDS" in the school aid computer
 listing produced by the commissioner in support of  the  enacted  budget
 for  the  2011-12  school year and entitled "SA111-2", or (B) the amount
 set forth for such school district as "UNIVERSAL PREKINDERGARTEN"  under
 the  heading "2010-11 BASE YEAR AIDS" in the school aid computer listing
 produced by the commissioner  on  May  fifteenth,  two  thousand  eleven
 pursuant  to  paragraph  b  of  subdivision  twenty-one of section three
 hundred five of this chapter, and
   (v) for the two thousand  seventeen--two  thousand  eighteen  and  two
 thousand  eighteen--two  thousand  nineteen  school  years,  each school
 district shall be eligible to receive a grant amount equal to the sum of
 (A) the amount set forth for such school district as "UNIVERSAL  PREKIN-
 DERGARTEN"  under the heading "2016-17 ESTIMATED AIDS" in the school aid
 computer listing produced by the commissioner in support of the  enacted
 budget  for the two thousand sixteen--two thousand seventeen school year
 and entitled "SA161-7" plus  (B)  the  amount  awarded  to  such  school
 district for the priority full-day prekindergarten and expanded half-day
 prekindergarten  grant  program for high need students for the two thou-
 sand sixteen--two thousand seventeen school  year  pursuant  to  chapter
 fifty-three  of  the  laws  of  two thousand thirteen, PROVIDED THAT FOR
 PURPOSES OF CALCULATING THE MAINTENANCE OF EFFORT REDUCTION IN  SUBDIVI-
 SION  ELEVEN  OF  THIS  SECTION GRANT AMOUNTS SHALL BE THE FOUR-YEAR-OLD
 GRANT AMOUNT, and
   (vi) for the two thousand nineteen--two thousand twenty  school  year,
 each  school  district shall be eligible to receive a grant amount equal
 to the sum of (A) the amount set  forth  for  such  school  district  as
 "UNIVERSAL  PREKINDERGARTEN" in the school aid computer listing produced
 by the commissioner in support of the enacted budget for the  two  thou-
 sand  eighteen--two  thousand  nineteen  school year plus (B) the amount
 awarded to such school district for the  federal  preschool  development
 expansion  grant  for  the two thousand seventeen--two thousand eighteen
 school year pursuant to the American Recovery and  Reinvestment  Act  of
 2009  (ARRA),  Sections  14005, 14006, and 14013, Title XIV, (Public Law
 112-10), as amended by section 1832(b) of Division B of  the  Department
 of  Defense  and  Full-Year Continuing Appropriations Act, 2011 (Pub. L.
 112-10), and the Department of Education Appropriations Act, 2012 (Title
 III Division F of Pub. L. 112-74, the Consolidated  Appropriations  Act,
 2012)  plus  (C)  the  amount  awarded  to  such school district for the
 expanded prekindergarten program for three and four  year-olds  for  the
 two  thousand  eighteen--two  thousand  nineteen school year pursuant to
 chapter sixty-one of the laws of  two  thousand  fifteen  plus  (D)  the
 amount  awarded to such school district for the expanded prekindergarten
 for three-year-olds in high need districts program for the two  thousand
 eighteen--two  thousand  nineteen school year pursuant to chapter fifty-
 three of the laws of two thousand sixteen plus (E) the amount awarded to
 such school district for the expanded prekindergarten program for three-

 S. 1509--C                         212                        A. 2009--C

 and four-year-olds for the two thousand eighteen--two thousand  nineteen
 school  year pursuant to a chapter of the laws of two thousand seventeen
 plus (F) the amount awarded to  such  school  district,  subject  to  an
 available  appropriation,  through  the pre-kindergarten expansion grant
 for the  two  thousand  eighteen--two  thousand  nineteen  school  year,
 provided  that such school district has met all requirements pursuant to
 this section AND FOR PURPOSES OF CALCULATING THE MAINTENANCE  OF  EFFORT
 REDUCTION  IN SUBDIVISION ELEVEN OF THIS SECTION THAT SUCH GRANT AMOUNTS
 SHALL BE DIVIDED INTO A FOUR-YEAR-OLD GRANT AMOUNT BASED ON  THE  AMOUNT
 EACH  DISTRICT  WAS  ELIGIBLE TO RECEIVE IN THE BASE YEAR TO SERVE FOUR-
 YEAR-OLD PREKINDERGARTEN PUPILS AND A THREE-YEAR-OLD GRANT AMOUNT  BASED
 ON  THE AMOUNT EACH DISTRICT WAS ELIGIBLE TO RECEIVE IN THE BASE YEAR TO
 SERVE THREE-YEAR-OLD PUPILS, and
   (vii) for the two thousand twenty--two thousand twenty-one school year
 and thereafter, each school district shall  be  eligible  to  receive  a
 grant  amount  equal  to  the  sum  of (A) the amount set forth for such
 school district as "UNIVERSAL PREKINDERGARTEN ALLOCATION" on the comput-
 er file produced by the commissioner in support of  the  enacted  budget
 for  the prior year plus (B) the amount awarded to such school district,
 subject to an  available  appropriation,  through  the  pre-kindergarten
 expansion  grant  for the prior year, provided that such school district
 has met all requirements pursuant to this section AND  FOR  PURPOSES  OF
 CALCULATING THE MAINTENANCE OF EFFORT REDUCTION IN SUBDIVISION ELEVEN OF
 THIS  SECTION THAT SUCH GRANT AMOUNTS SHALL BE DIVIDED INTO A FOUR-YEAR-
 OLD GRANT AMOUNT BASED ON THE  AMOUNT  EACH  DISTRICT  WAS  ELIGIBLE  TO
 RECEIVE  IN  THE BASE YEAR TO SERVE FOUR-YEAR-OLD PREKINDERGARTEN PUPILS
 AND A THREE-YEAR-OLD GRANT AMOUNT BASED ON THE AMOUNT EACH DISTRICT  WAS
 ELIGIBLE TO RECEIVE IN THE BASE YEAR TO SERVE THREE-YEAR-OLD PUPILS, and
 provided further that the maximum grant shall not exceed the total actu-
 al  grant  expenditures  incurred  by the school district in the current
 school year as approved by the commissioner.
   a. Each school district shall be eligible to  serve  the  sum  of  (i)
 ELIGIBLE  full-day FOUR-YEAR-OLD prekindergarten pupils plus (ii) ELIGI-
 BLE half-day FOUR-YEAR-OLD prekindergarten pupils  PLUS  (III)  ELIGIBLE
 FULL-DAY  THREE-YEAR-OLD PREKINDERGARTEN PUPILS PLUS (IV) ELIGIBLE HALF-
 DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS.
   b. For purposes of paragraph a of this subdivision:
   (i) "Selected aid per prekindergarten pupil" shall equal  the  greater
 of  (A)  the  product  of five-tenths and the school district's selected
 foundation aid for the current year, or (B) the aid per  prekindergarten
 pupil  calculated pursuant to this subdivision for the two thousand six-
 two thousand seven school year, based on data on file for the school aid
 computer listing produced by the commissioner in support of the  enacted
 budget  for  the  two  thousand  six--two thousand seven school year and
 entitled "SA060-7"; provided, however, that in the two thousand  eight--
 two thousand nine school year, a city school district in a city having a
 population  of  one million inhabitants or more shall not be eligible to
 select aid per prekindergarten pupil pursuant  to  clause  (A)  of  this
 subparagraph;
   (ii)  (1)  "ELIGIBLE  Full-day  FOUR-YEAR-OLD  prekindergarten pupils"
 shall equal:
   For the two thousand seventeen--two thousand eighteen school year  the
 sum  of,  from  the  priority  full-day prekindergarten program, (A) the
 maximum aidable pupils such district was eligible to serve in  the  base
 year  plus  (B)  the  maximum aidable number of half-day prekindergarten
 pupils converted into a full-day prekindergarten pupil in the base year;

 S. 1509--C                         213                        A. 2009--C

   For the two thousand eighteen--two thousand nineteen school  year  the
 sum  of,  from  the  programs  pursuant to this section, (A) the maximum
 aidable full-day prekindergarten pupils such district  was  eligible  to
 serve  in  the base year plus (B) the maximum aidable number of half-day
 prekindergarten  pupils  converted  into  [a]  full-day  prekindergarten
 [pupil] PUPILS in the base year;
   For the two thousand nineteen--two thousand twenty school year the sum
 of, from each of (A) the programs pursuant  to  this  section,  (B)  the
 federal  preschool development expansion grant, (C) the expanded prekin-
 dergarten program, (D) [the  expanded  prekindergarten  for  three-year-
 olds,  (E)]  the  expanded  prekindergarten program for three- and four-
 year-olds, and [(F)] (E) the prekindergarten expansion  grant,  (1)  the
 maximum  aidable  full-day  FOUR-YEAR-OLD  prekindergarten  pupils  such
 district was eligible to serve in the base year, plus  (2)  the  maximum
 aidable   number   of   half-day  FOUR-YEAR-OLD  prekindergarten  pupils
 converted into [a] full-day prekindergarten [pupil] PUPILS in  the  base
 year;
   For  the  two thousand twenty--two thousand twenty-one school year and
 thereafter the sum of, from each of (A) the programs  pursuant  to  this
 section  and  (B)  the pre-kindergarten expansion grant, (1) the maximum
 aidable full-day FOUR-YEAR-OLD prekindergarten pupils such district  was
 eligible  to serve in the base year, plus (2) the maximum aidable number
 of half-day FOUR-YEAR-OLD  prekindergarten  pupils  converted  into  [a]
 full-day prekindergarten [pupil] PUPILS in the base year;
   (2)  "ELIGIBLE  FULL-DAY  THREE-YEAR-OLD PREKINDERGARTEN PUPILS" SHALL
 EQUAL:
   FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY  SCHOOL  YEAR,  THE
 SUM  OF,  FROM EACH OF (A) THE EXPANDED PREKINDERGARTEN PROGRAM, (B) THE
 EXPANDED PREKINDERGARTEN PROGRAM FOR THREE-YEAR-OLDS, (C)  THE  EXPANDED
 PREKINDERGARTEN PROGRAM FOR THREE- AND FOUR-YEAR-OLDS, AND (D) THE PREK-
 INDERGARTEN  EXPANSION  GRANT,  (1)  THE MAXIMUM AIDABLE FULL-DAY THREE-
 YEAR-OLD PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGIBLE TO  SERVE  IN
 THE  BASE  YEAR,  PLUS (2) THE MAXIMUM AIDABLE NUMBER OF HALF-DAY THREE-
 YEAR-OLD PREKINDERGARTEN PUPILS CONVERTED INTO FULL-DAY  PREKINDERGARTEN
 PUPILS IN THE BASE YEAR;
   FOR  THE  TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL YEAR AND
 THEREAFTER, THE SUM OF, FROM EACH OF (A) THE PROGRAMS PURSUANT  TO  THIS
 SECTION,  AND  (B)  THE PREKINDERGARTEN EXPANSION GRANT, (1) THE MAXIMUM
 AIDABLE FULL-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS SUCH DISTRICT WAS
 ELIGIBLE TO SERVE IN THE BASE YEAR, PLUS (2) THE MAXIMUM AIDABLE  NUMBER
 OF  HALF-DAY  THREE-YEAR-OLD PREKINDERGARTEN PUPILS CONVERTED INTO FULL-
 DAY PREKINDERGARTEN PUPILS IN THE BASE YEAR;
   (iii) ["Half-day] (1) "ELIGIBLE HALF-DAY FOUR-YEAR-OLD prekindergarten
 pupils" shall equal:
   For the two thousand seventeen--two thousand eighteen school year  the
 sum of the maximum aidable half-day prekindergarten pupils such district
 was eligible to serve for the base year from (A) the program pursuant to
 this  section plus such pupils from (B) the priority full-day prekinder-
 garten program, less the maximum aidable number of  half-day  prekinder-
 garten pupils converted into [a] full-day prekindergarten [pupil] PUPILS
 under the priority full-day prekindergarten program for the base year;
   For  the two thousand eighteen--two thousand nineteen school year, the
 maximum aidable half-day prekindergarten pupils such district was eligi-
 ble to serve for the  base  year  from  the  program  pursuant  to  this
 section;

 S. 1509--C                         214                        A. 2009--C

   For  the  two  thousand nineteen--two thousand twenty school year, the
 sum of the maximum aidable half-day FOUR-YEAR-OLD prekindergarten pupils
 such district was eligible to serve for  the  base  year  from  (A)  the
 program  pursuant to this section plus such pupils from (B) the expanded
 prekindergarten  program plus such pupils from (C) [the expanded prekin-
 dergarten for three-year-olds plus such pupils from  (D)]  the  expanded
 prekindergarten  program  for three- and four-year-olds plus such pupils
 from [(E)] (D) the prekindergarten expansion grant, less the sum of  the
 maximum  aidable number of half-day FOUR-YEAR-OLD prekindergarten pupils
 converted into [a] full-day FOUR-YEAR-OLD prekindergarten [pupil] PUPILS
 under each of (1) the federal preschool expansion  grant  for  the  base
 year plus such pupils from (2) the expanded prekindergarten program plus
 such  pupils  from (3) [the expanded prekindergarten for three-year-olds
 plus such pupils from (4)]  the  expanded  prekindergarten  program  for
 three- and four-year-olds plus such pupils from [(5)] (4) the prekinder-
 garten expansion grant for the base year;
   For  the  two thousand twenty--two thousand twenty-one school year and
 thereafter, the sum of the maximum aidable half-day FOUR-YEAR-OLD  prek-
 indergarten pupils such district was eligible to serve for the base year
 from  (A) the program pursuant to this section plus such pupils from (B)
 the pre-kindergarten expansion grant, less the maximum aidable number of
 half-day FOUR-YEAR-OLD prekindergarten pupils converted into  [a]  full-
 day FOUR-YEAR-OLD prekindergarten [pupil] PUPILS under the prekindergar-
 ten expansion grant for the base year;
   (2)  "ELIGIBLE  HALF-DAY  THREE-YEAR-OLD PREKINDERGARTEN PUPILS" SHALL
 EQUAL:
   FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY  SCHOOL  YEAR,  THE
 SUM  OF  THE  MAXIMUM  AIDABLE  HALF-DAY  THREE-YEAR-OLD PREKINDERGARTEN
 PUPILS SUCH DISTRICT WAS ELIGIBLE TO SERVE FOR THE BASE  YEAR  FROM  (A)
 THE  EXPANDED  PREKINDERGARTEN  PROGRAM  PLUS  SUCH  PUPILS FROM (B) THE
 EXPANDED PREKINDERGARTEN FOR THREE-YEAR-OLDS PLUS SUCH PUPILS  FROM  (C)
 THE  EXPANDED PREKINDERGARTEN PROGRAM FOR THREE- AND FOUR-YEAR-OLDS PLUS
 SUCH PUPILS FROM (D) THE PREKINDERGARTEN EXPANSION GRANT, LESS  THE  SUM
 OF THE MAXIMUM AIDABLE NUMBER OF HALF-DAY THREE-YEAR-OLD PREKINDERGARTEN
 PUPILS  CONVERTED  INTO  FULL-DAY  THREE-YEAR-OLD PREKINDERGARTEN PUPILS
 UNDER EACH OF (1) THE EXPANDED PREKINDERGARTEN PROGRAM PLUS SUCH  PUPILS
 FROM  (2)  THE  EXPANDED  PREKINDERGARTEN  FOR THREE-YEAR-OLDS PLUS SUCH
 PUPILS FROM (3) THE EXPANDED  PREKINDERGARTEN  PROGRAM  FOR  THREE-  AND
 FOUR-YEAR-OLDS  PLUS  SUCH PUPILS FROM (4) THE PREKINDERGARTEN EXPANSION
 GRANT FOR THE BASE YEAR;
   FOR THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL  YEAR  AND
 THEREAFTER, THE SUM OF THE MAXIMUM AIDABLE HALF-DAY THREE-YEAR-OLD PREK-
 INDERGARTEN PUPILS SUCH DISTRICT WAS ELIGIBLE TO SERVE FOR THE BASE YEAR
 FROM  (A) THE PROGRAM PURSUANT TO THIS SECTION PLUS SUCH PUPILS FROM (B)
 THE PREKINDERGARTEN EXPANSION GRANT, LESS THE MAXIMUM AIDABLE NUMBER  OF
 HALF-DAY  THREE-YEAR-OLD  PREKINDERGARTEN PUPILS CONVERTED INTO FULL-DAY
 THREE-YEAR-OLD PREKINDERGARTEN PUPILS UNDER THE  PREKINDERGARTEN  EXPAN-
 SION GRANT FOR THE BASE YEAR;
   (iv)  "Unserved  FOUR-YEAR-OLD  prekindergarten pupils" shall mean the
 product of eighty-five percent multiplied by the positive difference, if
 any, between the sum of the public school enrollment and  the  nonpublic
 school enrollment of children attending full day and half day kindergar-
 ten programs in the district in the year prior to the base year less the
 number  of  resident children who attain the age of four before December
 first of the base year, who were served during such  school  year  by  a
 prekindergarten  program approved pursuant to section forty-four hundred

 S. 1509--C                         215                        A. 2009--C
 
 ten of this chapter, where such services are provided for more than four
 hours per day;
   (v)  (1)  "Prekindergarten  FOUR-YEAR-OLD  maintenance of effort base"
 shall mean the number of eligible [total] full-day FOUR-YEAR-OLD prekin-
 dergarten pupils set forth for the district in this paragraph  plus  the
 product  of  one half (0.5) multiplied by the number of eligible [total]
 half-day FOUR-YEAR-OLD prekindergarten pupils set forth for the district
 in this paragraph;
   (2) "PREKINDERGARTEN THREE-YEAR-OLD MAINTENANCE OF EFFORT BASE"  SHALL
 MEAN  THE  NUMBER  OF  ELIGIBLE  FULL-DAY THREE-YEAR-OLD PREKINDERGARTEN
 PUPILS SET FORTH FOR THE DISTRICT IN THIS PARAGRAPH PLUS THE PRODUCT  OF
 ONE HALF (0.5) MULTIPLIED BY THE NUMBER OF ELIGIBLE HALF-DAY THREE-YEAR-
 OLD PREKINDERGARTEN PUPILS SET FORTH FOR THE DISTRICT IN THIS PARAGRAPH;
   (vi)  (1)  "Current  year FOUR-YEAR-OLD prekindergarten pupils served"
 shall mean the sum of  full  day  FOUR-YEAR-OLD  prekindergarten  pupils
 served in the current year plus the product of one half (0.5) multiplied
 by the half day FOUR-YEAR-OLD prekindergarten pupils in the current year
 less the half-day FOUR-YEAR-OLD conversion overage;
   (2)  "CURRENT YEAR THREE-YEAR-OLD PREKINDERGARTEN PUPILS SERVED" SHALL
 MEAN THE SUM OF FULL DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS SERVED IN
 THE CURRENT YEAR PLUS THE PRODUCT OF ONE HALF (0.5)  MULTIPLIED  BY  THE
 HALF  DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS IN THE CURRENT YEAR LESS
 THE HALF-DAY THREE-YEAR-OLD CONVERSION OVERAGE;
   (vii) (1) "Half-day FOUR-YEAR-OLD conversion overage" shall equal, for
 districts [that serve greater than] WITH thirty percent  fewer  FULL-DAY
 FOUR-YEAR-OLD  PREKINDERGARTEN  PUPILS  SERVED  IN THE CURRENT YEAR THAN
 ELIGIBLE  full-day  FOUR-YEAR-OLD  prekindergarten  pupils  [during  the
 current  year than the number of total eligible full-day prekindergarten
 pupils] AS set forth [for the district] in THIS paragraph [b of subdivi-
 sion ten of this section] due to the conversion of  full-day  FOUR-YEAR-
 OLD  PREKINDERGARTEN  PUPILS  SERVED  IN  THE  CURRENT  YEAR to half-day
 [slots] FOUR YEAR-OLD PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR,
 the difference of the product of seven-tenths multiplied by the  [total]
 eligible  full-day  FOUR-YEAR-OLD prekindergarten pupils rounded down to
 the nearest whole number, less  the  number  of  full-day  FOUR-YEAR-OLD
 prekindergarten pupils [actually] served[.] IN THE CURRENT YEAR;
   (2)  "HALF-DAY  THREE-YEAR-OLD  CONVERSION  OVERAGE"  SHALL EQUAL, FOR
 DISTRICTS WITH THIRTY PERCENT FEWER FULL-DAY  THREE-YEAR-OLD  PREKINDER-
 GARTEN  PUPILS  SERVED IN THE CURRENT YEAR THAN ELIGIBLE FULL-DAY THREE-
 YEAR-OLD PREKINDERGARTEN PUPILS AS SET FORTH  IN  PARAGRAPH  B  OF  THIS
 SUBDIVISION  DUE TO THE CONVERSION OF FULL-DAY THREE-YEAR-OLD PREKINDER-
 GARTEN PUPILS SERVED IN THE  CURRENT  YEAR  TO  HALF-DAY  THREE-YEAR-OLD
 PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR, THE DIFFERENCE OF THE
 PRODUCT  OF SEVEN-TENTHS MULTIPLIED BY THE ELIGIBLE FULL-DAY THREE-YEAR-
 OLD PREKINDERGARTEN PUPILS ROUNDED DOWN TO  THE  NEAREST  WHOLE  NUMBER,
 LESS THE NUMBER OF FULL-DAY THREE-YEAR-OLD PREKINDERGARTEN PUPILS SERVED
 IN THE CURRENT YEAR;
   (3) Provided that a district may apply to the commissioner for a hard-
 ship  waiver  that  would  allow  a district to convert more than thirty
 percent of full-day FOUR-YEAR-OLD prekindergarten [slots] PUPILS  SERVED
 IN  THE  CURRENT  YEAR to half-day [slots] FOUR-YEAR-OLD PREKINDERGARTEN
 PUPILS SERVED IN THE  CURRENT  YEAR  OR  THREE-YEAR-OLD  PREKINDERGARTEN
 PUPILS  SERVED IN THE CURRENT YEAR TO HALF-DAY THREE-YEAR-OLD PREKINDER-
 GARTEN PUPILS SERVED IN THE CURRENT YEAR and receive  funding  for  such
 slots.  Such  waiver shall be granted upon a demonstration by the school
 district that due to a significant change in the resources available  to

 S. 1509--C                         216                        A. 2009--C

 the  school  district  and absent [a] THIS HARDSHIP waiver [to allow the
 conversion of more than thirty percent of full-day prekindergarten slots
 to half-day slots], the school district would be unable  to  serve  such
 pupils   in   prekindergarten   programs,  without  causing  significant
 disruption to other district programming;
   (viii) (1) "Maintenance of effort  factor  FOR  FOUR-YEAR-OLDS"  shall
 mean  the  quotient arrived at when dividing the current year FOUR-YEAR-
 OLD prekindergarten pupils served by the  prekindergarten  FOUR-YEAR-OLD
 maintenance of effort base[.];
   (2)  "MAINTENANCE OF EFFORT FACTOR FOR THREE-YEAR-OLDS" SHALL MEAN THE
 QUOTIENT ARRIVED AT WHEN DIVIDING THE CURRENT YEAR THREE-YEAR-OLD  PREK-
 INDERGARTEN  PUPILS SERVED BY THE PREKINDERGARTEN THREE-YEAR-OLD MAINTE-
 NANCE OF EFFORT BASE;
   (IX) For the purposes of this paragraph:
   (A) "Priority full-day prekindergarten program" shall mean the priori-
 ty full-day prekindergarten and expanded half-day prekindergarten  grant
 program  for  high  need students pursuant to chapter fifty-three of the
 laws of two thousand thirteen;
   (B) "Federal preschool development expansion  grant"  shall  mean  the
 federal  preschool  development expansion grant pursuant to the American
 Recovery and Reinvestment Act of 2009 (ARRA), Sections 14005, 14006, and
 14013, Title XIV, (Public Law 112-10), as amended by section 1832(b)  of
 Division  B of the Department of Defense and Full-Year Continuing Appro-
 priations Act, 2011 (Pub. L. 112-10), and the  Department  of  Education
 Appropriations  Act,  2012 (Title III Division F of Pub. L.  112-74, the
 Consolidated Appropriations Act, 2012);
   (C) "Expanded prekindergarten program" shall mean the expanded prekin-
 dergarten program for three- and [four year-olds] FOUR-YEAR-OLDS  pursu-
 ant to chapter sixty-one of the laws of two thousand fifteen;
   (D)  "Expanded  prekindergarten  for  three-year-olds"  shall mean the
 expanded prekindergarten for  three-year-olds  in  high  need  districts
 program  pursuant  to  chapter  fifty-three  of the laws of two thousand
 sixteen;
   (E) "Expanded prekindergarten program for three-  and  four-year-olds"
 shall  mean  the  expanded  prekindergarten program for three- and four-
 year-olds pursuant to a chapter of the laws of two thousand seventeen;
   (F) "Prekindergarten expansion grant" shall mean  the  prekindergarten
 expansion  grant  for  the  two thousand eighteen--two thousand nineteen
 school year and thereafter, pursuant to  subdivision  eighteen  of  this
 section,  to  the extent such program was available subject to appropri-
 ation, and provided that such school district has met  all  requirements
 pursuant to this section.
   c.  Notwithstanding  any  other  provision  of this section, the total
 grant payable pursuant to this section shall equal the  lesser  of:  (i)
 the [total grant amounts] SUM OF THE FOUR-YEAR-OLD GRANT AMOUNT PLUS THE
 THREE-YEAR-OLD  GRANT  AMOUNT  computed pursuant to this subdivision for
 the current year, based on data on file  with  the  commissioner  as  of
 September  first  of  the  school year immediately following or (ii) the
 total actual grant expenditures  incurred  by  the  school  district  as
 approved by the commissioner.
   d. Notwithstanding any other provision of this section, apportionments
 under this section greater than the amounts provided in the two thousand
 sixteen--two  thousand  seventeen  school  year  shall  only  be used to
 supplement and not supplant current local expenditures of state or local
 funds on prekindergarten programs and the  number  of  [slots]  ELIGIBLE
 FULL-DAY  FOUR-YEAR-OLD  PREKINDERGARTEN  PUPILS  AND  ELIGIBLE FULL-DAY

 S. 1509--C                         217                        A. 2009--C
 
 THREE-YEAR-OLD PREKINDERGARTEN PUPILS in such programs from such  sourc-
 es.  Current  local expenditures shall include any local expenditures of
 state or local funds used to  supplement  or  extend  services  provided
 directly  or  via  contract to eligible children enrolled in a universal
 prekindergarten program pursuant to this section.
   11. Maintenance of effort reduction.
   (A) Where a school district's current year FOUR-YEAR-OLD prekindergar-
 ten pupils served is less than its prekindergarten FOUR-YEAR-OLD mainte-
 nance of effort base, the school district shall have  its  current  year
 FOUR-YEAR-OLD  apportionment  equal  to the product of the FOUR-YEAR-OLD
 maintenance of effort factor computed in paragraph b of subdivision  ten
 of  this  section  multiplied  by  the FOUR-YEAR-OLD grant amount it was
 eligible to receive pursuant to subdivision ten of this section.
   (B) WHERE A SCHOOL DISTRICT'S CURRENT YEAR  THREE-YEAR-OLD  PREKINDER-
 GARTEN  PUPILS  SERVED  IS  LESS THAN ITS PREKINDERGARTEN THREE-YEAR-OLD
 MAINTENANCE OF EFFORT BASE, THE SCHOOL DISTRICT SHALL HAVE  ITS  CURRENT
 YEAR  THREE-YEAR-OLD  APPORTIONMENT  EQUAL  TO THE PRODUCT OF THE THREE-
 YEAR-OLD MAINTENANCE OF EFFORT FACTOR COMPUTED IN PARAGRAPH B OF  SUBDI-
 VISION TEN OF THIS SECTION MULTIPLIED BY THE THREE-YEAR-OLD GRANT AMOUNT
 IT WAS ELIGIBLE TO RECEIVE PURSUANT TO SUBDIVISION TEN OF THIS SECTION.
   § 11. Intentionally omitted.
   § 12. Intentionally omitted.
   §  12-a. Subdivision 14 of section 305 of the education law is amended
 by adding a new paragraph g to read as follows:
   G. NOTWITHSTANDING THE PROVISIONS OF  THIS  SUBDIVISION,  SECTION  ONE
 HUNDRED  THREE  OF  THE GENERAL MUNICIPAL LAW, OR ANY OTHER PROVISION OF
 LAW TO THE CONTRARY, THE BOARD OF EDUCATION SHALL BE AUTHORIZED TO ENTER
 INTO A PIGGYBACK CONTRACT WITH ANOTHER SCHOOL DISTRICT  THAT  TRANSPORTS
 STUDENTS  PURSUANT  TO A CONTRACT WITH A PRIVATE TRANSPORTATION CONTRAC-
 TOR, PROVIDED THAT THE BOARD FINDS THAT THE CONTRACT COST IS APPROPRIATE
 AND ENTRY INTO A PIGGYBACK CONTRACT WILL RESULT IN A COST SAVINGS TO THE
 SCHOOL DISTRICT. FOR PURPOSES OF THIS PARAGRAPH, A "PIGGYBACK  CONTRACT"
 MEANS  A  CONTRACT FOR THE TRANSPORTATION OF STUDENTS THAT: (1) PROVIDES
 TRANSPORTATION TO A LOCATION OUTSIDE THE STUDENTS'  SCHOOL  DISTRICT  OF
 RESIDENCE  TO  WHICH ANOTHER SCHOOL DISTRICT IS ALREADY PROVIDING TRANS-
 PORTATION TO ITS OWN  STUDENTS  THROUGH  AN  EXISTING  CONTRACT  WITH  A
 PRIVATE  TRANSPORTATION  CONTRACTOR,  OTHER  THAN  A  COOPERATIVELY  BID
 CONTRACT; (2) IS ENTERED INTO BY THE PRIVATE  TRANSPORTATION  CONTRACTOR
 AND  EACH  SCHOOL DISTRICT INVOLVED; AND (3) PROVIDES FOR TRANSPORTATION
 IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF SUCH EXISTING TRANSPORTA-
 TION CONTRACT.
   § 13. Intentionally omitted.
   § 14. Intentionally omitted.
   § 14-a. Intentionally omitted.
   § 15. Intentionally omitted.
   § 16. The closing paragraph of subdivision 5-a of section 3602 of  the
 education law, as amended by section 10 of part CCC of chapter 59 of the
 laws of 2018, is amended to read as follows:
   For the two thousand eight--two thousand nine school year, each school
 district  shall  be entitled to an apportionment equal to the product of
 fifteen percent and the additional apportionment  computed  pursuant  to
 this  subdivision  for the two thousand seven--two thousand eight school
 year. For the two thousand nine--two thousand ten through  two  thousand
 [eighteen]  NINETEEN--two  thousand [nineteen] TWENTY school years, each
 school district shall be entitled  to  an  apportionment  equal  to  the
 amount  set  forth  for such school district as "SUPPLEMENTAL PUB EXCESS

 S. 1509--C                         218                        A. 2009--C
 
 COST" under the heading "2008-09 BASE  YEAR  AIDS"  in  the  school  aid
 computer  listing  produced by the commissioner in support of the budget
 for the two thousand nine--two thousand ten  school  year  and  entitled
 "SA0910".
   §  17. Subdivision 12 of section 3602 of the education law, as amended
 by section 13 of part CCC of chapter 59 of the laws of 2018, is  amended
 to read as follows:
   12. Academic enhancement aid. A school district that as of April first
 of  the base year has been continuously identified as a district in need
 of improvement for at least five  years  shall,  for  the  two  thousand
 eight--two  thousand  nine  school  year,  be  entitled to an additional
 apportionment equal to the positive remainder, if any, of (a) the lesser
 of fifteen million dollars or the product of the  total  foundation  aid
 base,  as  defined  by  paragraph  j of subdivision one of this section,
 multiplied by ten percent (0.10), less (b) the positive remainder of (i)
 the sum of the total foundation aid apportioned pursuant to  subdivision
 four of this section and the supplemental educational improvement grants
 apportioned  pursuant to subdivision eight of section thirty-six hundred
 forty-one of this article, less (ii) the total foundation aid base.
   For the two thousand nine--two thousand ten through two thousand four-
 teen--two thousand fifteen school years, each school district  shall  be
 entitled  to  an  apportionment  equal  to the amount set forth for such
 school district as "EDUCATION GRANTS, ACADEMIC  EN"  under  the  heading
 "2008-09  BASE YEAR AIDS" in the school aid computer listing produced by
 the commissioner in support of the budget for the two thousand nine--two
 thousand ten school year and entitled "SA0910", and  such  apportionment
 shall be deemed to satisfy the state obligation to provide an apportion-
 ment  pursuant to subdivision eight of section thirty-six hundred forty-
 one of this article.
   For the two thousand fifteen--two thousand sixteen year,  each  school
 district  shall  be entitled to an apportionment equal to the amount set
 forth for such school district as "ACADEMIC ENHANCEMENT" under the head-
 ing "2014-15 ESTIMATED AIDS" in the school aid computer listing produced
 by the commissioner in support of the budget for the two thousand  four-
 teen--two  thousand fifteen school year and entitled "SA141-5", and such
 apportionment shall be deemed to satisfy the state obligation to provide
 an apportionment pursuant to subdivision  eight  of  section  thirty-six
 hundred forty-one of this article.
   For the two thousand sixteen--two thousand seventeen school year, each
 school  district  shall  be  entitled  to  an apportionment equal to the
 amount set forth for such  school  district  as  "ACADEMIC  ENHANCEMENT"
 under  the  heading  "2015-16 ESTIMATED AIDS" in the school aid computer
 listing produced by the commissioner in support of the  budget  for  the
 two  thousand  fifteen--two  thousand  sixteen  school year and entitled
 "SA151-6", and such apportionment shall be deemed to satisfy  the  state
 obligation  to provide an apportionment pursuant to subdivision eight of
 section thirty-six hundred forty-one of this article.
   For the two thousand seventeen--two  thousand  eighteen  school  year,
 each  school district shall be entitled to an apportionment equal to the
 amount set forth for such  school  district  as  "ACADEMIC  ENHANCEMENT"
 under  the  heading  "2016-17 ESTIMATED AIDS" in the school aid computer
 listing produced by the commissioner in support of the  budget  for  the
 two  thousand  sixteen--two  thousand seventeen school year and entitled
 "SA161-7", and such apportionment shall be deemed to satisfy  the  state
 obligation  to provide an apportionment pursuant to subdivision eight of
 section thirty-six hundred forty-one of this article.

 S. 1509--C                         219                        A. 2009--C
 
   For the two thousand eighteen--two thousand nineteen school year, each
 school district shall be entitled  to  an  apportionment  equal  to  the
 amount  set  forth  for  such  school district as "ACADEMIC ENHANCEMENT"
 under the heading "2017-18 ESTIMATED AIDS" in the  school  aid  computer
 listing  produced  by  the commissioner in support of the budget for the
 two thousand seventeen--two thousand eighteen school year  and  entitled
 "SA171-8",  and  such apportionment shall be deemed to satisfy the state
 obligation to provide an apportionment pursuant to subdivision eight  of
 section thirty-six hundred forty-one of this article.
   FOR  THE  TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR, EACH
 SCHOOL DISTRICT SHALL BE ENTITLED  TO  AN  APPORTIONMENT  EQUAL  TO  THE
 AMOUNT  SET  FORTH  FOR  SUCH  SCHOOL DISTRICT AS "ACADEMIC ENHANCEMENT"
 UNDER THE HEADING "2018-19 ESTIMATED AIDS" IN THE  SCHOOL  AID  COMPUTER
 LISTING  PRODUCED  BY  THE COMMISSIONER IN SUPPORT OF THE BUDGET FOR THE
 TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL  YEAR  AND  ENTITLED
 "SA181-9",  AND  SUCH APPORTIONMENT SHALL BE DEEMED TO SATISFY THE STATE
 OBLIGATION TO PROVIDE AN APPORTIONMENT PURSUANT TO SUBDIVISION EIGHT  OF
 SECTION THIRTY-SIX HUNDRED FORTY-ONE OF THIS ARTICLE.
   §  18.  The opening paragraph of subdivision 16 of section 3602 of the
 education law, as amended by section 14 of part CCC of chapter 59 of the
 laws of 2018, is amended to read as follows:
   Each school district shall be eligible  to  receive  a  high  tax  aid
 apportionment  in the two thousand eight--two thousand nine school year,
 which shall equal the greater of (i) the sum of the tier 1 high tax  aid
 apportionment, the tier 2 high tax aid apportionment and the tier 3 high
 tax  aid apportionment or (ii) the product of the apportionment received
 by the school district pursuant to this subdivision in the two  thousand
 seven--two  thousand  eight  school  year, multiplied by the due-minimum
 factor, which shall equal, for districts with an alternate pupil  wealth
 ratio  computed  pursuant  to  paragraph  b of subdivision three of this
 section that is less than two, seventy percent (0.70), and for all other
 districts, fifty percent (0.50). Each school district shall be  eligible
 to  receive  a  high tax aid apportionment in the two thousand nine--two
 thousand ten through two thousand twelve--two thousand  thirteen  school
 years in the amount set forth for such school district as "HIGH TAX AID"
 under  the  heading  "2008-09 BASE YEAR AIDS" in the school aid computer
 listing produced by the commissioner in support of the  budget  for  the
 two  thousand  nine--two thousand ten school year and entitled "SA0910".
 Each school district shall be eligible to receive a high tax aid  appor-
 tionment in the two thousand thirteen--two thousand fourteen through two
 thousand  [eighteen]  NINETEEN--two  thousand  [nineteen]  TWENTY school
 years equal to the greater of (1) the amount set forth for  such  school
 district as "HIGH TAX AID" under the heading "2008-09 BASE YEAR AIDS" in
 the  school aid computer listing produced by the commissioner in support
 of the budget for the two thousand nine--two thousand  ten  school  year
 and  entitled  "SA0910"  or  (2)  the  amount  set forth for such school
 district as "HIGH TAX AID" under the heading "2013-14 ESTIMATED AIDS" in
 the school aid computer listing produced by the commissioner in  support
 of  the  executive  budget  for  the  2013-14  fiscal  year and entitled
 "BT131-4".
   § 19. Subdivision 16 of section  3602-ee  of  the  education  law,  as
 amended  by section 19 of part CCC of chapter 59 of the laws of 2018, is
 amended to read as follows:
   16. The authority of the department to administer the universal  full-
 day  pre-kindergarten  program shall expire June thirtieth, two thousand

 S. 1509--C                         220                        A. 2009--C
 
 [nineteen] TWENTY; provided that the program shall continue  and  remain
 in full effect.
   § 20. Intentionally omitted.
   § 21. The opening paragraph of section 3609-a of the education law, as
 amended  by section 21 of part CCC of chapter 59 of the laws of 2018, is
 amended to read as follows:
   For aid payable in the two thousand seven--two thousand  eight  school
 year  through  the two thousand [eighteen] NINETEEN--two thousand [nine-
 teen] TWENTY school year, "moneys apportioned" shall mean the lesser  of
 (i)  the  sum  of one hundred percent of the respective amount set forth
 for each school district as payable pursuant  to  this  section  in  the
 school aid computer listing for the current year produced by the commis-
 sioner in support of the budget which includes the appropriation for the
 general support for public schools for the prescribed payments and indi-
 vidualized  payments  due prior to April first for the current year plus
 the apportionment payable during the current  school  year  pursuant  to
 subdivision  six-a and subdivision fifteen of section thirty-six hundred
 two of this part minus any reductions to current year aids  pursuant  to
 subdivision seven of section thirty-six hundred four of this part or any
 deduction  from  apportionment  payable  pursuant  to  this  chapter for
 collection of a school district basic contribution as defined in  subdi-
 vision eight of section forty-four hundred one of this chapter, less any
 grants  provided pursuant to subparagraph two-a of paragraph b of subdi-
 vision four of section ninety-two-c of the state finance law,  less  any
 grants  provided  pursuant  to subdivision [six] FIVE of section ninety-
 seven-nnnn of the state finance law, less any grants  provided  pursuant
 to  subdivision  twelve  of section thirty-six hundred forty-one of this
 article, or (ii) the apportionment calculated by the commissioner  based
 on  data on file at the time the payment is processed; provided however,
 that for the purposes of any payments  made  pursuant  to  this  section
 prior  to  the  first  business  day of June of the current year, moneys
 apportioned shall not include any aids payable pursuant to  subdivisions
 six  and  fourteen,  if applicable, of section thirty-six hundred two of
 this part as current year aid for  debt  service  on  bond  anticipation
 notes  and/or bonds first issued in the current year or any aids payable
 for full-day kindergarten for the current year pursuant  to  subdivision
 nine  of section thirty-six hundred two of this part. The definitions of
 "base year" and "current year"  as  set  forth  in  subdivision  one  of
 section thirty-six hundred two of this part shall apply to this section.
 For  aid  payable  in the two thousand [eighteen] NINETEEN--two thousand
 [nineteen] TWENTY school year, reference to such  "school  aid  computer
 listing  for  the  current  year"  shall  mean  the  printouts  entitled
 ["SA181-9"] "SA192-0".
   § 22. Paragraph b of subdivision 2 of section 3612  of  the  education
 law,  as  amended by section 22 of part CCC of chapter 59 of the laws of
 2018, is amended to read as follows:
   b. Such grants shall be awarded to school districts, within the limits
 of funds appropriated therefor, through a competitive process that takes
 into consideration the magnitude of any  shortage  of  teachers  in  the
 school  district, the number of teachers employed in the school district
 who hold temporary licenses to teach in the public schools of the state,
 the number of provisionally certified teachers, the fiscal capacity  and
 geographic  sparsity  of  the  district,  the number of new teachers the
 school district intends to hire in the coming school year and the number
 of summer in the city student internships proposed by an eligible school
 district, if applicable. Grants provided pursuant to this section  shall

 S. 1509--C                         221                        A. 2009--C
 
 be used only for the purposes enumerated in this section.  Notwithstand-
 ing  any  other provision of law to the contrary, a city school district
 in a city having a population of one million or more inhabitants receiv-
 ing a grant pursuant to this section may use no more than eighty percent
 of  such  grant  funds  for any recruitment, retention and certification
 costs associated with transitional certification of  teacher  candidates
 for  the  school  years  two  thousand one--two thousand two through two
 thousand [eighteen] TWENTY-THREE--two thousand [nineteen] TWENTY-FOUR.
   § 23. Subdivision 6 of section 4402 of the education law,  as  amended
 by  section 23 of part CCC of chapter 59 of the laws of 2018, is amended
 to read as follows:
   6. Notwithstanding any other law, rule or regulation to the  contrary,
 the  board  of  education of a city school district with a population of
 one hundred twenty-five thousand or more inhabitants shall be  permitted
 to  establish  maximum  class  sizes  for  special  classes  for certain
 students with disabilities in accordance with  the  provisions  of  this
 subdivision. For the purpose of obtaining relief from any adverse fiscal
 impact  from under-utilization of special education resources due to low
 student attendance in  special  education  classes  at  the  middle  and
 secondary level as determined by the commissioner, such boards of educa-
 tion  shall, during the school years nineteen hundred ninety-five--nine-
 ty-six through June thirtieth, two thousand [nineteen of the  two  thou-
 sand  eighteen--two  thousand  nineteen  school  year]  TWENTY-FOUR,  be
 authorized  to  increase  class  sizes  in  special  classes  containing
 students  with  disabilities whose age ranges are equivalent to those of
 students in middle and secondary schools as defined by the  commissioner
 for  purposes  of  this  section  by up to but not to exceed one and two
 tenths times the applicable maximum class size specified in  regulations
 of  the  commissioner  rounded  up to the nearest whole number, provided
 that in a city school district having a population  of  one  million  or
 more, classes that have a maximum class size of fifteen may be increased
 by  no  more  than  one  student and provided that the projected average
 class size shall not exceed the  maximum  specified  in  the  applicable
 regulation,  provided  that  such  authorization shall terminate on June
 thirtieth, two thousand. Such authorization shall be granted upon filing
 of a notice by such a board of education with the  commissioner  stating
 the  board's  intention to increase such class sizes and a certification
 that the board will conduct  a  study  of  attendance  problems  at  the
 secondary  level and will implement a corrective action plan to increase
 the rate of attendance of students in such classes to at least the  rate
 for students attending regular education classes in secondary schools of
 the  district.  Such  corrective  action  plan  shall  be  submitted for
 approval by the commissioner by a date during the school year  in  which
 such  board  increases class sizes as provided pursuant to this subdivi-
 sion to be prescribed by the commissioner. Upon  at  least  thirty  days
 notice to the board of education, after conclusion of the school year in
 which  such  board  increases  class  sizes as provided pursuant to this
 subdivision, the commissioner shall  be  authorized  to  terminate  such
 authorization  upon  a  finding  that the board has failed to develop or
 implement an approved corrective action plan.
   § 24. Intentionally omitted.
   § 24-a. Subparagraph (ii) of paragraph (c) of subdivision 8 of section
 3602-ee of the education law, as amended by section 18-b of part CCC  of
 chapter 59 of the laws of 2018, is amended to read as follows:
   (ii)  Provided  that, notwithstanding any provisions of this paragraph
 to the contrary, for the two thousand  seventeen-two  thousand  eighteen

 S. 1509--C                         222                        A. 2009--C
 
 [and]  THROUGH  THE  two  thousand [eighteen-two thousand] nineteen--TWO
 THOUSAND TWENTY school years an exemption to the certification  require-
 ment  of  subparagraph  (i)  of this paragraph may be made for a teacher
 without  certification  valid  for service in the early childhood grades
 who possesses a written plan to obtain certification and who has  regis-
 tered  in the ASPIRE workforce registry as required under regulations of
 the commissioner of the office of children and family services. Notwith-
 standing any exemption  provided  by  this  subparagraph,  certification
 shall be required for employment no later than June thirtieth, two thou-
 sand  [nineteen] TWENTY; PROVIDED THAT FOR THE TWO THOUSAND NINETEEN-TWO
 THOUSAND TWENTY SCHOOL YEAR, SCHOOL DISTRICTS WITH TEACHERS  SEEKING  AN
 EXEMPTION  TO  THE CERTIFICATION REQUIREMENT OF SUBPARAGRAPH (I) OF THIS
 PARAGRAPH SHALL SUBMIT A REPORT TO THE COMMISSIONER  REGARDING  (A)  THE
 BARRIERS  TO CERTIFICATION, IF ANY, (B) THE NUMBER OF UNCERTIFIED TEACH-
 ERS REGISTERED IN THE ASPIRE WORKFORCE REGISTRY TEACHING  PRE-KINDERGAR-
 TEN  IN  THE  DISTRICT,  INCLUDING  THOSE  EMPLOYED BY A COMMUNITY-BASED
 ORGANIZATION, (C) THE   NUMBER OF PREVIOUSLY  UNCERTIFIED  TEACHERS  WHO
 HAVE  COMPLETED  CERTIFICATION  AS REQUIRED BY THIS SUBDIVISION, AND (D)
 THE EXPECTED CERTIFICATION COMPLETION DATE OF SUCH TEACHERS.
   § 25. Section 3012-d of the education law is amended by adding  a  new
 subdivision 16 to read as follows:
   16.  A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION
 TO THE CONTRARY, THE GRADES THREE THROUGH EIGHT  ENGLISH  LANGUAGE  ARTS
 AND  MATHEMATICS STATE ASSESSMENTS AND ALL OTHER STATE-CREATED OR ADMIN-
 ISTERED TESTS SHALL NOT BE REQUIRED TO BE  UTILIZED  IN  ANY  MANNER  TO
 DETERMINE A TEACHER OR PRINCIPAL EVALUATION REQUIRED BY THIS SECTION.
   B.  THE  COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS PROVIDING
 ALTERNATIVE ASSESSMENTS THAT MAY BE USED IN GRADES THREE  THROUGH  EIGHT
 INSTEAD  OF  ALL  OTHER STATE-CREATED OR ADMINISTERED TESTS, WHICH SHALL
 INCLUDE ALL OF THE ASSESSMENTS THAT HAVE BEEN APPROVED  BY  THE  COMMIS-
 SIONER FOR USE IN DETERMINING TRANSITION SCORES AND RATINGS.
   C.  THE SELECTION AND USE OF AN ASSESSMENT IN A TEACHER OR PRINCIPAL'S
 EVALUATION PURSUANT TO PARAGRAPHS A AND B OF THIS SUBDIVISION AND SUBDI-
 VISION FOUR OF THIS SECTION SHALL BE SUBJECT  TO  COLLECTIVE  BARGAINING
 PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW.
   D. NOTWITHSTANDING ANY PROVISION OF SUBDIVISION TWELVE OF THIS SECTION
 TO  THE CONTRARY, NOTHING IN THIS SECTION SHALL BE CONSTRUED TO ABROGATE
 ANY CONFLICTING PROVISIONS OF ANY  COLLECTIVE  BARGAINING  AGREEMENT  IN
 EFFECT  ON  THE  DATE  THIS SUBDIVISION TAKES EFFECT AND UNTIL THE ENTRY
 INTO A SUCCESSOR COLLECTIVE BARGAINING AGREEMENT, PROVIDED THAT NOTWITH-
 STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, UPON EXPIRATION  OF
 SUCH TERM AND THE ENTRY INTO A SUCCESSOR COLLECTIVE BARGAINING AGREEMENT
 THE  PROVISIONS  OF THIS SUBDIVISION SHALL APPLY; AND, PROVIDED FURTHER,
 HOWEVER, THAT ANY ASSESSMENTS USED IN DETERMINING TRANSITION SCORES  AND
 RATINGS SHALL BE USED IN DETERMINING SCORES AND RATINGS PURSUANT TO THIS
 SECTION  INSTEAD OF THE GRADES THREE THROUGH EIGHT ENGLISH LANGUAGE ARTS
 AND MATHEMATICS STATE ASSESSMENTS  UNTIL  THE  ENTRY  INTO  A  SUCCESSOR
 COLLECTIVE BARGAINING AGREEMENT.
   § 26. Subparagraphs 1 and 2 of paragraph a of subdivision 4 of section
 3012-d  of  the education law, subparagraph 1 as amended by section 3 of
 subpart C of part B of chapter 20 of the laws of 2015 and subparagraph 2
 as added by section 2 of subpart E of part EE of chapter 56 of the  laws
 of 2015, are amended to read as follows:
   (1)  For  the first subcomponent, [(A) for a teacher whose course ends
 in a state-created or administered test for which there is a  state-pro-
 vided  growth  model,  such  teacher  shall have a state-provided growth

 S. 1509--C                         223                        A. 2009--C

 score based on such model, which shall take into  consideration  certain
 student  characteristics,  as  determined by the commissioner, including
 but not limited to students with disabilities, poverty, English language
 learner  status  and  prior  academic  history  and which shall identify
 educators whose students' growth is well above  or  well  below  average
 compared  to  similar  students  for a teacher's or principal's students
 after the certain student characteristics above are taken into  account;
 and  (B)  for  a teacher whose course does not end in a state-created or
 administered test such teacher] A TEACHER shall have a student  learning
 objective  (SLO)  consistent  with  a goal-setting process determined or
 developed by the commissioner, that results in a student  growth  score;
 provided  that,  for any teacher whose course ends in a state-created or
 administered assessment [for which there  is  no  state-provided  growth
 model],  such assessment [must] MAY be used as the underlying assessment
 for such SLO;
   (2) For the optional  second  subcomponent,  a  district  may  locally
 select  a  second  measure  in  accordance  with this subparagraph. Such
 second measure shall apply in a consistent manner, to the extent practi-
 cable, across the district and be either: (A) [a  second  state-provided
 growth  score]  BASED  on  a  state-created  or administered test [under
 clause (A) of subparagraph one of this  paragraph],  or  (B)  [a  growth
 score]  based  on  a state-designed supplemental assessment[, calculated
 using a state-provided or approved growth model].  The  optional  second
 subcomponent shall provide options for multiple assessment measures that
 are  aligned  to  existing  classroom and school best practices and take
 into consideration the recommendations in the testing  reduction  report
 as  required  by  section  one  of subpart F of [the chapter] PART EE OF
 CHAPTER FIFTY-SIX of the laws of two thousand fifteen which  added  this
 section regarding the reduction of unnecessary additional testing.
   §  27.  Subdivision 5 of section 3012-d of the education law, as added
 by section 2 of subpart E of part EE of chapter 56 of the laws of  2015,
 is amended to read as follows:
   5.  Rating  determination.  The  overall rating determination shall be
 determined [according to a methodology] as follows:
   a. [The following rules shall apply: a teacher or principal who is (1)
 rated using two subcomponents in the student  performance  category  and
 receives  a  rating of ineffective in such category shall be rated inef-
 fective overall; provided, however, that if  the  measure  used  in  the
 second  subcomponent is a state-provided growth score on a state-created
 or administered test pursuant to clause (A) of subparagraph one of para-
 graph a of subdivision four of this section, a teacher or principal  who
 receives  a rating of ineffective in such category shall not be eligible
 to receive a rating of effective or highly effective overall; (2)  rated
 using  only  the  state  measure subcomponent in the student performance
 category and receives a rating of ineffective in such category shall not
 be eligible to receive a rating of effective or highly  effective  over-
 all;  and  (3)  rated  ineffective  in the teacher observations category
 shall not be eligible to receive a rating of effective or highly  effec-
 tive overall.
   b.  Except as otherwise provided in paragraph a of this subdivision, a
 teacher's composite score shall be determined as follows:
   (1)] If a teacher receives an H in the teacher  observation  category,
 and  an  H  in the student performance category, the teacher's composite
 score shall be H;

 S. 1509--C                         224                        A. 2009--C
 
   [(2)] B. If a teacher receives an H in the teacher observation catego-
 ry, and an E in the student performance category, the teacher's  compos-
 ite score shall be H;
   [(3)] C. If a teacher receives an H in the teacher observation catego-
 ry, and a D in the student performance category, the teacher's composite
 score shall be E;
   [(4)] D. If a teacher receives an H in the teacher observation catego-
 ry,  and an I in the student performance category, the teacher's compos-
 ite score shall be D;
   [(5)] E. If a teacher receives an E in the teacher observation catego-
 ry, and an H in the student performance category, the teacher's  compos-
 ite score shall be H;
   [(6)] F. If a teacher receives an E in the teacher observation catego-
 ry,  and an E in the student performance category, the teacher's compos-
 ite score shall be E;
   [(7)] G. If a teacher receives an E in the teacher observation catego-
 ry, and a D in the student performance category, the teacher's composite
 score shall be E;
   [(8)] H. If a teacher receives an E in the teacher observation catego-
 ry, and an I in the student performance category, the teacher's  compos-
 ite score shall be D;
   [(9)]  I. If a teacher receives a D in the teacher observation catego-
 ry, and an H in the student performance category, the teacher's  compos-
 ite score shall be E;
   [(10)] J. If a teacher receives a D in the teacher observation catego-
 ry,  and an E in the student performance category, the teacher's compos-
 ite score shall be E;
   [(11)] K. If a teacher receives a D in the teacher observation catego-
 ry, and a D in the student performance category, the teacher's composite
 score shall be D;
   [(12)] L. If a teacher receives a D in the teacher observation catego-
 ry, and an I in the student performance category, the teacher's  compos-
 ite score shall be I;
   [(13)]  M. If a teacher receives an I in the teacher observation cate-
 gory, and an H  in  the  student  performance  category,  the  teacher's
 composite score shall be D;
   [(14)]  N. If a teacher receives an I in the teacher observation cate-
 gory, and an E  in  the  student  performance  category,  the  teacher's
 composite score shall be D;
   [(15)]  O. If a teacher receives an I in the teacher observation cate-
 gory, and a D in the student performance category, the teacher's compos-
 ite score shall be I;
   [(16)] P. If a teacher receives an I in the teacher observation  cate-
 gory,  and  an  I  in  the  student  performance category, the teacher's
 composite score shall be I.
   § 28. Subdivision 7 of section 3012-d of the education law,  as  added
 by  section 2 of subpart E of part EE of chapter 56 of the laws of 2015,
 is amended to read as follows:
   7. The commissioner shall ensure that the process by which weights and
 scoring ranges are assigned to subcomponents and categories is transpar-
 ent and available to those being rated  before  the  beginning  of  each
 school  year. Such process must ensure that it is possible for a teacher
 or principal to obtain any number of points in  the  applicable  scoring
 ranges,  including  zero,  in  each  subcomponent.  The  superintendent,
 district superintendent or chancellor  and  the  representative  of  the
 collective  bargaining  unit  (where  one  exists)  shall certify in the

 S. 1509--C                         225                        A. 2009--C
 
 district's plan that the evaluation process shall use the standards  for
 the  scoring  ranges  provided by the commissioner.  [Provided, however,
 that in any event, the following rules shall apply: a teacher or princi-
 pal who is:
   a.  rated  using two subcomponents in the student performance category
 and receives a rating of ineffective in such  category  shall  be  rated
 ineffective  overall,  except  that  if  the  measure used in the second
 subcomponent is a second state-provided growth score on a state-adminis-
 tered or sponsored test pursuant to clause (A) of  subparagraph  one  of
 paragraph  a of subdivision four of this section, a teacher or principal
 that receives a rating of ineffective in  such  category  shall  not  be
 eligible to receive a rating of effective or highly effective overall;
   b.  rated  using  only  the  state measure subcomponent in the student
 performance category and receives a rating of ineffective in such  cate-
 gory  shall  not  be eligible to receive a rating of effective or highly
 effective overall; and
   c. rated ineffective in the observations category shall not be  eligi-
 ble to receive a rating of effective or highly effective overall.]
   §  29. Subdivision 10 of section 3012-d of the education law, as added
 by section 2 of subpart E of part EE of chapter 56 of the laws of  2015,
 is amended to read as follows:
   10.  The  local  collective  bargaining representative shall negotiate
 with the district:
   a. whether to use a second measure, and, in the event  that  a  second
 measure  is  used, which measure to use, pursuant to subparagraph two of
 paragraph a of subdivision four of this section [and];
   b. how to implement the provisions of paragraph b of subdivision  four
 of  this  section,  and  associated  regulations  as  established by the
 commissioner, in accordance with article fourteen of the  civil  service
 law; AND
   C.  THE SELECTION AND USE OF AN ASSESSMENT IN A TEACHER OR PRINCIPAL'S
 EVALUATION PURSUANT TO SUBDIVISION FOUR OF THIS SECTION AND PARAGRAPHS A
 AND B OF SUBDIVISION SIXTEEN OF THIS SECTION.
   § 30. Section 2 of subpart B of part AA of chapter 56 of the  laws  of
 2014  amending the education law relating to providing that standardized
 test scores shall not be included on a student's  permanent  record,  as
 amended  by section 35 of part CCC of chapter 59 of the laws of 2018, is
 amended to read as follows:
   § 2. This act shall take effect immediately [and shall expire  and  be
 deemed repealed on December 31, 2019].
   § 31. Intentionally omitted.
   §  32.  Section 2801-a of the education law is amended by adding a new
 subdivision 10 to read as follows:
   10. EVERY SCHOOL SHALL DEFINE THE ROLES AND AREAS OF RESPONSIBILITY OF
 SCHOOL PERSONNEL, SECURITY PERSONNEL AND LAW ENFORCEMENT IN RESPONSE  TO
 STUDENT  MISCONDUCT THAT VIOLATES THE CODE OF CONDUCT. A SCHOOL DISTRICT
 OR CHARTER SCHOOL THAT EMPLOYS, CONTRACTS WITH, OR OTHERWISE RETAINS LAW
 ENFORCEMENT OR PUBLIC OR PRIVATE SECURITY  PERSONNEL,  INCLUDING  SCHOOL
 RESOURCE  OFFICERS,  SHALL ESTABLISH A WRITTEN CONTRACT OR MEMORANDUM OF
 UNDERSTANDING THAT IS DEVELOPED WITH STAKEHOLDER INPUT,  INCLUDING,  BUT
 NOT  LIMITED  TO,  PARENTS,  STUDENTS,  SCHOOL ADMINISTRATORS, TEACHERS,
 COLLECTIVE BARGAINING UNITS, PARENT AND STUDENT ORGANIZATIONS AND COMMU-
 NITY MEMBERS, AS WELL AS PROBATION OFFICERS, PROSECUTORS, DEFENSE  COUN-
 SELS  AND  COURTS THAT ARE FAMILIAR WITH SCHOOL DISCIPLINE. SUCH WRITTEN
 CONTRACT OR MEMORANDUM OF UNDERSTANDING SHALL  DEFINE  THE  RELATIONSHIP
 BETWEEN A SCHOOL DISTRICT OR CHARTER SCHOOL, SCHOOL PERSONNEL, STUDENTS,

 S. 1509--C                         226                        A. 2009--C
 
 VISITORS,  LAW  ENFORCEMENT,  AND  PUBLIC OR PRIVATE SECURITY PERSONNEL.
 SUCH CONTRACT OR MEMORANDUM OF UNDERSTANDING SHALL  BE  CONSISTENT  WITH
 THE  CODE  OF  CONDUCT,  DEFINE  LAW ENFORCEMENT OR SECURITY PERSONNEL'S
 ROLES,  RESPONSIBILITIES  AND  INVOLVEMENT  WITHIN  A SCHOOL AND CLEARLY
 DELEGATE THE ROLE OF SCHOOL DISCIPLINE  TO  THE  SCHOOL  ADMINISTRATION.
 SUCH  WRITTEN  CONTRACT OR MEMORANDUM OF UNDERSTANDING SHALL BE INCORPO-
 RATED INTO AND PUBLISHED AS PART OF THE DISTRICT SAFETY PLAN.
   § 33. Intentionally omitted.
   § 34. Intentionally omitted.
   § 35. Subdivision b of section 2 of chapter 756 of the laws  of  1992,
 relating  to funding a program for work force education conducted by the
 consortium for worker education in New York city, as amended by  section
 25  of part CCC of chapter 59 of the laws of 2018, is amended to read as
 follows:
   b. Reimbursement for programs approved in accordance with  subdivision
 a  of this section for the [2016--2017 school year shall not exceed 60.3
 percent of the lesser of such approvable costs per contact hour or thir-
 teen dollars ninety cents  per  contact  hour,]  reimbursement  for  the
 2017--2018  school  year  shall not exceed 60.4 percent of the lesser of
 such approvable costs per contact hour or thirteen  dollars  and  ninety
 cents  per  contact  hour, [and] reimbursement for the 2018--2019 school
 year shall not exceed 59.4 percent of  the  lesser  of  such  approvable
 costs  per  contact  hour  or fourteen dollars and ninety-five cents per
 contact hour, AND REIMBURSEMENT FOR THE 2019--2020 SCHOOL YEAR SHALL NOT
 EXCEED 57.7 PERCENT OF THE LESSER OF SUCH APPROVABLE COSTS  PER  CONTACT
 HOUR  OR  FIFTEEN  DOLLARS SIXTY CENTS PER CONTACT HOUR, where a contact
 hour represents sixty minutes of instruction  services  provided  to  an
 eligible  adult.    Notwithstanding  any  other  provision of law to the
 contrary, for the [2016--2017 school year such contact hours  shall  not
 exceed  one million five hundred fifty-one thousand three hundred twelve
 (1,551,312); whereas for the] 2017--2018 school year such contact  hours
 shall  not  exceed  one  million  five  hundred forty-nine thousand four
 hundred sixty-three (1,549,463); and for the 2018--2019 school year such
 contact hours shall not exceed  one  million  four  hundred  sixty-three
 thousand  nine  hundred  sixty-three (1,463,963); AND FOR THE 2019--2020
 SCHOOL YEAR SUCH CONTACT HOURS SHALL NOT EXCEED ONE MILLION FOUR HUNDRED
 FORTY-FOUR THOUSAND FOUR HUNDRED FORTY-FOUR (1,444,444).   Notwithstand-
 ing any other provision of law to the contrary, the apportionment calcu-
 lated  for  the city school district of the city of New York pursuant to
 subdivision 11 of section 3602 of the education law shall be computed as
 if such contact hours provided by the consortium for  worker  education,
 not  to exceed the contact hours set forth herein, were eligible for aid
 in accordance with the provisions of such subdivision 11 of section 3602
 of the education law.
   § 36. Section 4 of chapter 756 of the laws of 1992, relating to  fund-
 ing  a  program for work force education conducted by the consortium for
 worker education in New York city, is amended by adding a  new  subdivi-
 sion x to read as follows:
   X.  THE  PROVISIONS  OF  THIS  SUBDIVISION  SHALL  NOT APPLY AFTER THE
 COMPLETION OF PAYMENTS FOR THE 2019--2020 SCHOOL  YEAR.  NOTWITHSTANDING
 ANY  INCONSISTENT PROVISIONS OF LAW, THE COMMISSIONER OF EDUCATION SHALL
 WITHHOLD A PORTION OF EMPLOYMENT PREPARATION EDUCATION AID  DUE  TO  THE
 CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK TO SUPPORT A PORTION OF THE
 COSTS OF THE WORK FORCE EDUCATION PROGRAM. SUCH MONEYS SHALL BE CREDITED
 TO  THE ELEMENTARY AND SECONDARY EDUCATION FUND LOCAL ASSISTANCE ACCOUNT
 AND SHALL NOT EXCEED THIRTEEN MILLION DOLLARS ($13,000,000).

 S. 1509--C                         227                        A. 2009--C
 
   § 37. Section 6 of chapter 756 of the laws of 1992, relating to  fund-
 ing  a  program for work force education conducted by the consortium for
 worker education in New York city, as amended by section 27 of part  CCC
 of chapter 59 of the laws of 2018, is amended to read as follows:
   §  6.  This  act  shall  take effect July 1, 1992, and shall be deemed
 repealed on June 30, [2019] 2020.
   § 37-a. Paragraph a-1 of subdivision 11 of section 3602 of the  educa-
 tion  law,  as  amended by section 27-a of part CCC of chapter 59 of the
 laws of 2018, is amended to read as follows:
   a-1. Notwithstanding the provisions of paragraph a  of  this  subdivi-
 sion, for aid payable in the school years two thousand--two thousand one
 through  two  thousand nine--two thousand ten, and two thousand eleven--
 two thousand twelve through two thousand [eighteen] NINETEEN--two  thou-
 sand  [nineteen] TWENTY, the commissioner may set aside an amount not to
 exceed two million five hundred thousand dollars from the  funds  appro-
 priated  for  purposes  of  this  subdivision for the purpose of serving
 persons twenty-one years of age or older who have not been  enrolled  in
 any  school  for  the  preceding school year, including persons who have
 received a high school diploma or high school  equivalency  diploma  but
 fail  to  demonstrate basic educational competencies as defined in regu-
 lation by the  commissioner,  when  measured  by  accepted  standardized
 tests, and who shall be eligible to attend employment preparation educa-
 tion programs operated pursuant to this subdivision.
   §  38. Subdivisions 22 and 24 of section 140 of chapter 82 of the laws
 of 1995, amending the education law and other laws relating to state aid
 to school districts and the appropriation of funds for  the  support  of
 government,  as  amended  by section 28 of part CCC of chapter 59 of the
 laws of 2018, are amended to read as follows:
   (22) sections one hundred twelve, one hundred  thirteen,  one  hundred
 fourteen,  one hundred fifteen and one hundred sixteen of this act shall
 take effect on July 1, 1995; provided, however, that section one hundred
 thirteen of this act shall remain in full force and effect until July 1,
 [2019] 2024 at which time it shall be deemed repealed;
   (24) sections one hundred eighteen through one hundred thirty of  this
 act  shall  be deemed to have been in full force and effect on and after
 July 1, 1995; provided further, however, that the amendments made pursu-
 ant to section one hundred twenty-four of this act shall be deemed to be
 repealed on and after July 1, [2019] 2024;
   § 39. Section 12 of chapter 147 of the  laws  of  2001,  amending  the
 education  law  relating  to conditional appointment of school district,
 charter school or BOCES employees, as amended by section 31 of part  CCC
 of chapter 59 of the laws of 2018, is amended to read as follows:
   §  12.  This  act shall take effect on the same date as chapter 180 of
 the laws of 2000 takes effect, and shall expire July 1, [2019] 2020 when
 upon such date the provisions of this act shall be deemed repealed.
   § 40. Section 4 of chapter 425 of  the  laws  of  2002,  amending  the
 education  law  relating  to  the  provision of supplemental educational
 services, attendance at a safe  public  school  and  the  suspension  of
 pupils  who  bring  a  firearm  to  or possess a firearm at a school, as
 amended by section 33 of part CCC of chapter 59 of the laws of 2018,  is
 amended to read as follows:
   §  4.  This act shall take effect July 1, 2002 and SECTION ONE OF THIS
 ACT shall expire and be deemed repealed June 30, 2019, AND SECTIONS  TWO
 AND  THREE  OF  THIS ACT SHALL EXPIRE AND BE DEEMED REPEALED ON JUNE 30,
 2020.

 S. 1509--C                         228                        A. 2009--C
 
   § 41. Section 5 of chapter 101 of  the  laws  of  2003,  amending  the
 education law relating to implementation of the No Child Left Behind Act
 of  2001, as amended by section 34 of part CCC of chapter 59 of the laws
 of 2018, is amended to read as follows:
   §  5.  This  act shall take effect immediately; provided that sections
 one, two and three of this act shall expire and be  deemed  repealed  on
 June 30, [2019] 2020.
   § 42. Section 34 of chapter 91 of the laws of 2002 amending the educa-
 tion  law and other laws relating to reorganization of the New York city
 school construction authority, board of education and community  boards,
 as  amended by section 1 of part G of chapter 61 of the laws of 2017, is
 amended to read as follows:
   § 34. This act shall take effect July 1, 2002; provided, that sections
 one through twenty, twenty-four, and twenty-six through thirty  of  this
 act  shall  expire and be deemed repealed June 30, [2019] 2022 provided,
 further, that notwithstanding any provision of article 5 of the  general
 construction law, on June 30, [2019] 2022 the provisions of subdivisions
 3,  5,  and 8, paragraph b of subdivision 13, subdivision 14, paragraphs
 b, d, and e of subdivision 15, and subdivisions 17  and  21  of  section
 2554  of  the  education  law  as repealed by section three of this act,
 subdivision 1 of section 2590-b of the  education  law  as  repealed  by
 section  six  of  this  act,  paragraph  (a) of subdivision 2 of section
 2590-b of the education law as repealed by section seven  of  this  act,
 section 2590-c of the education law as repealed by section eight of this
 act, paragraph c of subdivision 2 of section 2590-d of the education law
 as  repealed by section twenty-six of this act, subdivision 1 of section
 2590-e of the education law as repealed by section twenty-seven of  this
 act,  subdivision  28 of section 2590-h of the education law as repealed
 by section twenty-eight of this act, subdivision 30 of section 2590-h of
 the education law as repealed by section twenty-nine of this act, subdi-
 vision 30-a of section 2590-h  of  the  education  law  as  repealed  by
 section  thirty  of  this  act  shall  be  revived  and  be read as such
 provisions existed in law on the date immediately preceding  the  effec-
 tive  date of this act; provided, however, that sections seven and eight
 of this act shall take effect on November  30,  2003;  provided  further
 that  the  amendments to subdivision 25 of section 2554 of the education
 law made by section two of this act shall be subject to  the  expiration
 and  reversion of such subdivision pursuant to section 12 of chapter 147
 of the laws of 2001, as amended, when upon such date the  provisions  of
 section four of this act shall take effect.
   §  43. Subdivision 12 of section 17 of chapter 345 of the laws of 2009
 amending the education law and other laws relating to the New York  city
 board of education, chancellor, community councils, and community super-
 intendents,  as amended by section 2 of part G of chapter 61 of the laws
 of 2017, is amended to read as follows:
   12. any provision in sections one, two, three, four, five, six, seven,
 eight, nine, ten and eleven of this act  not  otherwise  set  to  expire
 pursuant to section 34 of chapter 91 of the laws of 2002, as amended, or
 section  17 of chapter 123 of the laws of 2003, as amended, shall expire
 and be deemed repealed June 30, [2019] 2022.
   § 43-a. Subdivision 20 of section 2590-e  of  the  education  law,  as
 added by chapter 345 of the laws of 2009, is amended to read as follows:
   20. Consult on the selection of a community superintendent pursuant to
 subdivision thirty of section twenty-five hundred ninety-h of this arti-
 cle.  SUCH  CONSULTATION  SHALL INCLUDE AN OPPORTUNITY FOR THE COMMUNITY
 COUNCIL TO MEET WITH THE FINAL CANDIDATE OR CANDIDATES THE CHANCELLOR IS

 S. 1509--C                         229                        A. 2009--C

 CONSIDERING APPOINTING AND TO PROVIDE FEEDBACK TO THE  CHANCELLOR  PRIOR
 TO THE APPOINTMENT BEING MADE.
   § 43-b. Paragraph (a) of subdivision 1 of section 2590-b of the educa-
 tion  law,  as amended by chapter 345 of the laws of 2009, is amended to
 read as follows:
   (a) The board of education of the city school district of the city  of
 New York is hereby continued.
   (1)  (A)  Such  board of education shall consist of thirteen appointed
 members: one member to be appointed by each  borough  president  of  the
 city  of New York; and eight members to be appointed by the mayor of the
 city of New York.
   (B) COMMENCING ON JULY FIRST, TWO THOUSAND TWENTY, THE BOARD OF EDUCA-
 TION SHALL CONSIST OF FIFTEEN MEMBERS: ONE MEMBER  TO  BE  APPOINTED  BY
 EACH BOROUGH PRESIDENT OF THE CITY OF NEW YORK, ONE MEMBER TO BE ELECTED
 BY  COMMUNITY DISTRICT EDUCATION COUNCIL PRESIDENTS, AND NINE MEMBERS TO
 BE APPOINTED BY THE MAYOR OF THE CITY OF NEW YORK. ON OR BEFORE DECEMBER
 THIRTY-FIRST, TWO THOUSAND NINETEEN,  THE  CHANCELLOR  SHALL  PROMULGATE
 REGULATIONS  ESTABLISHING  A  PROCESS  FOR  COMMUNITY DISTRICT EDUCATION
 COUNCIL PRESIDENTS TO ELECT A MEMBER OF THE  BOARD,  AND  PROCESSES  FOR
 REMOVAL OF SUCH MEMBER AND FOR THE FILLING OF SUCH POSITION IN THE EVENT
 OF  A  VACANCY. THE FIRST MEMBER ELECTED BY COMMUNITY DISTRICT EDUCATION
 COUNCIL PRESIDENTS PURSUANT TO SUCH REGULATIONS  SHALL  TAKE  OFFICE  ON
 JULY FIRST, TWO THOUSAND TWENTY AND SHALL SERVE A TERM THAT ENDS ON JUNE
 THIRTIETH,  TWO  THOUSAND TWENTY-TWO.  THEREAFTER, THE MEMBER ELECTED BY
 COMMUNITY DISTRICT EDUCATION COUNCIL PRESIDENTS SHALL SERVE  FOR  A  TWO
 YEAR TERM COMMENCING ON JULY FIRST.
   (2)  The  chancellor shall serve as an ex-officio non-voting member of
 the city board.
   (3) The city board shall elect its  own  chairperson  from  among  its
 voting members.
   (4) All [thirteen] appointed members shall serve FOR TERMS COTERMINOUS
 WITH  THE  TERMS OF THEIR APPOINTING AUTHORITY, PROVIDED THAT ANY MEMBER
 MAY BE REMOVED at the pleasure of the appointing  authority  [and],  WHO
 SHALL PROVIDE WRITTEN NOTICE TO THE PUBLIC EXPLAINING THE REASONS THERE-
 FOR AT LEAST TEN DAYS IN ADVANCE OF THE REMOVAL.
   (5)  EXCEPT  FOR  THE  CHANCELLOR,  NO  BOARD  MEMBERS  shall [not] be
 employed in any capacity by the city of New York, or a subdivision ther-
 eof, or the city board.
   (6) No appointed OR ELECTED member of the city board shall also  be  a
 member,  officer,  or  employee of any public corporation, authority, or
 commission where the mayor of the city of New York has a majority of the
 appointments.
   (7) Each borough president's appointee shall  be  a  resident  of  the
 borough  for  which  the  borough  president  appointing  him or her was
 elected and shall be the parent of a child  attending  a  public  school
 within the city school district of the city of New York.
   (8)  Each  mayoral  appointee  shall be a resident of the city and two
 shall be parents of a child attending a public school  within  the  city
 district.
   (9)  All  parent members shall be eligible to continue to serve on the
 city board for two years  following  the  conclusion  of  their  child's
 attendance at a public school within the city district.
   (10)  Any  vacancy  shall  be filled by appointment by the appropriate
 appointing authority within ninety days of such vacancy.
   (11) Notwithstanding any provision of local law, the  members  of  the
 board  shall  not  have  staff, offices, or vehicles assigned to them or

 S. 1509--C                         230                        A. 2009--C
 
 receive compensation for their services, but shall be reimbursed for the
 actual and necessary expenses incurred by them  in  the  performance  of
 their duties.
   §  43-c.  Subdivisions  1,  2 and 8 of section 2590-c of the education
 law, as amended by chapter 345 of the laws of  2009,  paragraph  (a)  of
 subdivision  1 as amended by section 19 of part YYY of chapter 59 of the
 laws of 2017, and paragraph (c) of subdivision 8 as amended  by  chapter
 103 of the laws of 2014, are amended and a new subdivision 9 is added to
 read as follows:
   1.  Each  community district shall be governed by a community district
 education council. The community councils shall consist of eleven voting
 members and one non-voting member, as follows:
   (a) [Nine] (1) FOR COUNCILS WHOSE TERMS BEGIN PRIOR  TO  TWO  THOUSAND
 TWENTY,  NINE voting members shall be parents whose children are attend-
 ing a school or a pre-kindergarten program offered by a school under the
 jurisdiction of the community district, or have attended a school  or  a
 pre-kindergarten  program  offered by a school under the jurisdiction of
 the community district within the preceding  two  years,  and  shall  be
 selected  by  the presidents and officers of the parents' association or
 parent-teachers' association. Such members shall serve for a term of two
 years. Presidents and officers of parents' associations or parent-teach-
 ers' associations who are candidates in the selection  process  pursuant
 to  this  section  shall not be eligible to cast votes in such selection
 process. The association shall elect a member to vote in  the  place  of
 each  such  president or officer for the purposes of the selection proc-
 ess. Provided, however, that a parent of a pre-kindergarten pupil  shall
 vacate  his or her membership on such community district education coun-
 cil where the parent no longer has a child  that  attends  a  school  or
 pre-kindergarten  program  offered by a school under the jurisdiction of
 the community district.
   (2) FOR COUNCILS WHOSE TERMS BEGIN  IN  TWO  THOUSAND  TWENTY-ONE  AND
 THEREAFTER,  NINE  VOTING  MEMBERS  SHALL  BE PARENTS WHOSE CHILDREN ARE
 ATTENDING A SCHOOL OR A PRE-KINDERGARTEN PROGRAM  OFFERED  BY  A  SCHOOL
 UNDER  THE  JURISDICTION  OF  THE COMMUNITY DISTRICT, OR HAVE ATTENDED A
 SCHOOL UNDER THE JURISDICTION  OF  THE  COMMUNITY  DISTRICT  WITHIN  THE
 PRECEDING TWO YEARS, AND SHALL BE ELECTED BY PARENTS OF CHILDREN ATTEND-
 ING  SUCH  SCHOOLS  AND  PRE-KINDERGARTEN  PROGRAMS IN ACCORDANCE WITH A
 PROCESS DEVELOPED BY THE CHANCELLOR PURSUANT  TO  SUBDIVISION  EIGHT  OF
 THIS  SECTION.  PROVIDED,  HOWEVER,  THAT A PARENT OF A PRE-KINDERGARTEN
 PUPIL SHALL VACATE HIS OR HER  MEMBERSHIP  ON  SUCH  COMMUNITY  DISTRICT
 EDUCATION  COUNCIL  WHEN THE PARENT NO LONGER HAS A CHILD THAT ATTENDS A
 SCHOOL OR PRE-KINDERGARTEN PROGRAM OFFERED BY A SCHOOL UNDER THE  JURIS-
 DICTION OF THE COMMUNITY DISTRICT.
   (b)  Two  voting  members shall be appointed by the borough presidents
 corresponding to such district. Such appointees shall be  residents  of,
 or  own  or operate a business in, the district and shall be individuals
 with extensive business, trade, or education experience  and  knowledge,
 who  will  make a significant contribution to improving education in the
 district. Such members shall serve for a term of two years [and may only
 be reappointed for one additional two year term].
   (c) One non-voting member who is a high school senior residing in  the
 district, appointed by the superintendent from among the elected student
 leadership. Such member shall serve for a one year term.
   Members shall not be paid a salary or stipend, but shall be reimbursed
 for all actual and necessary expenses directly related to the duties and
 responsibilities of the community council.

 S. 1509--C                         231                        A. 2009--C
 
   2. For the initial community council, such members must be selected on
 or  before October thirty-first, two thousand three, with terms commenc-
 ing on December first, two thousand three. Thereafter, commencing in May
 of two thousand five, the selection OR  ELECTION  of  community  council
 members  shall occur on the second Tuesday in May, with terms commencing
 on the following July first.
   8. The chancellor shall: (a) develop a process  to  ensure  a  uniform
 election  process  for  parent  associations  and parent-teacher associ-
 ations. Such process shall ensure uniformity with respect to  timing  of
 elections and the structure and size of the body.
   (b) develop a process for nomination of candidates for community coun-
 cil  membership. Such process will outline in detail the procedure which
 must be followed to present a name for consideration, may include quali-
 fications and prohibitions in addition to those outlined in this section
 and may allow for an interview process for nominees.
   (c) (1) develop selection procedures  for  community  council  members
 which  shall attempt to ensure membership that reflects a representative
 cross-section of the communities within the school district and diversi-
 ty of the student population including those with particular educational
 needs, shall include consideration of the enrollment figures within each
 community district and the potential disparity of such  enrollment  from
 school  to  school  within  the  district, and shall ensure that, to the
 extent possible, a school may have no more  than  one  parent  represen-
 tative  on  the  community council. Such procedures shall ensure that at
 least one position on the community council is filled by a parent  of  a
 student  who  is  an English language learner or who has been an English
 language learner within the preceding two years, and at least one  posi-
 tion is filled by a parent of a student with an individualized education
 program,  and shall allow for the seven remaining positions to be filled
 by parents who are otherwise eligible;
   (2) AFTER REVIEWING THE RECOMMENDATIONS OF THE TASK FORCE DESCRIBED IN
 SUBDIVISION NINE OF THIS SECTION, DEVELOP ELECTION PROCEDURES FOR COMMU-
 NITY COUNCIL MEMBERS WHICH  SHALL  ATTEMPT  TO  ENSURE  MEMBERSHIP  THAT
 REFLECTS  A  REPRESENTATIVE  CROSS-SECTION OF THE COMMUNITIES WITHIN THE
 SCHOOL DISTRICT AND DIVERSITY OF THE STUDENT POPULATION INCLUDING  THOSE
 WITH  PARTICULAR  EDUCATIONAL  NEEDS, SHALL INCLUDE CONSIDERATION OF THE
 ENROLLMENT FIGURES WITHIN EACH  COMMUNITY  DISTRICT  AND  THE  POTENTIAL
 DISPARITY  OF SUCH ENROLLMENT FROM SCHOOL TO SCHOOL WITHIN THE DISTRICT,
 AND SHALL ENSURE THAT, TO THE EXTENT POSSIBLE, A SCHOOL MAY HAVE NO MORE
 THAN ONE PARENT REPRESENTATIVE ON THE COMMUNITY COUNCIL.  SUCH  MEASURES
 SHALL  ENSURE  THAT  AT  LEAST  ONE POSITION ON THE COMMUNITY COUNCIL IS
 FILLED BY A PARENT OF A CURRENT STUDENT WHO IS OR HAS BEEN AT  ANY  TIME
 AN  ENGLISH  LANGUAGE  LEARNER, AND AT LEAST ONE POSITION IS FILLED BY A
 PARENT OF A STUDENT WHO HAS OR HAS AT ANY  TIME  HAD  AN  INDIVIDUALIZED
 EDUCATION  PROGRAM, AND SHALL ALLOW FOR THE SEVEN REMAINING POSITIONS TO
 BE FILLED BY PARENTS WHO ARE OTHERWISE ELIGIBLE.
   (d) promulgate rules and regulations requiring financial disclosure by
 the nominees and policies  prohibiting  political  endorsements  of  and
 campaign contributions to nominees.
   (e)  beginning in January of each school year and continuing until the
 date of selection, ensure the distribution of guides to parents in addi-
 tion to information regarding community council  roles,  functions,  and
 activities,  including  upcoming parents' association and parent-teacher
 association elections, candidate information,  and  the  nature  of  the
 selection OR ELECTION process.

 S. 1509--C                         232                        A. 2009--C
 
   Prior  to  the  adoption  of the processes, procedures, rules or regu-
 lations set forth in this subdivision, the chancellor shall ensure  that
 there  is an inclusive public process which allows for sufficient public
 input from parents and the community including public hearings. All such
 processes,  procedures, rules or regulations must be final in sufficient
 time to assure for an orderly implementation and  notification  of  such
 processes,  procedures, rules or regulations to allow for full community
 participation in the nomination and selection processes and procedures.
   9. THE MAYOR SHALL APPOINT A TASK FORCE ON COMMUNITY  DISTRICT  EDUCA-
 TION  COUNCILS CONSISTING OF PARENTS WHOSE CHILD OR CHILDREN ARE ATTEND-
 ING A PUBLIC SCHOOL WITHIN THE COMMUNITY  DISTRICTS  AND  OTHER  MEMBERS
 WITH  RELEVANT  EXPERTISE.  THE  TASK FORCE SHALL REVIEW THE ELIGIBILITY
 CRITERIA TO SERVE ON A COMMUNITY DISTRICT EDUCATION COUNCIL, THE PROCESS
 FOR SELECTING COMMUNITY COUNCIL MEMBERS, AND THEIR TERMS OF OFFICE.  THE
 TASK FORCE SHALL SUBMIT A REPORT CONCERNING ITS FINDINGS AND RECOMMENDA-
 TIONS  TO  THE  MAYOR AND THE CHANCELLOR BY NOVEMBER FIRST, TWO THOUSAND
 NINETEEN.
   § 43-d. The opening paragraph of section 2590-h of the education  law,
 as  amended  by  chapter  345 of the laws of 2009, is amended to read as
 follows:
   The office of chancellor of the city  district  is  hereby  continued.
 Such  chancellor  shall  serve at the pleasure of and be employed by the
 mayor of the city of New York by contract. THE CHANCELLOR SHALL MEET THE
 REQUIREMENTS OF SUBDIVISION ONE OF SECTION THREE THOUSAND THREE OF  THIS
 CHAPTER,  PROVIDED  THAT  A  PERSON WHO HAS BEEN ISSUED A CERTIFICATE AS
 SUPERINTENDENT OF SCHOOLS PURSUANT TO SUBDIVISION THREE OF SUCH  SECTION
 MAY  SERVE  AS CHANCELLOR ON THE BASIS OF SUCH CERTIFICATE FOR NO LONGER
 THAN SIX MONTHS. The length of such contract shall not  exceed  by  more
 than  two  years  the  term  of  office  of  the  mayor authorizing such
 contract. The chancellor shall receive a salary to be fixed by the mayor
 within the budgetary allocation therefor. He or she shall  exercise  all
 his or her powers and duties in a manner not inconsistent with the city-
 wide  educational  policies of the city board. The chancellor shall have
 the following powers and duties as the  superintendent  of  schools  and
 chief  executive  officer  for  the  city district, which the chancellor
 shall exercise to promote  an  equal  educational  opportunity  for  all
 students  in the schools of the city district, promote fiscal and educa-
 tional equity, increase student achievement and school  performance  and
 encourage  local  school-based  innovation, including the power and duty
 to:
   § 43-e. Subdivision 21 of section 2590-e  of  the  education  law,  as
 added by chapter 345 of the laws of 2009, is amended to read as follows:
   21. Hold a joint public hearing with the chancellor or deputy chancel-
 lor,  or in the case of a proposed significant change in school utiliza-
 tion the chancellor or his or her  designee,  and  the  impacted  school
 based  management  team regarding any proposed school closing or signif-
 icant change in  school  utilization,  including  the  phase-out,  grade
 reconfiguration,  re-siting,  or  co-location  of schools, of any public
 school located within the community  district  pursuant  to  subdivision
 two-a of section twenty-five hundred ninety-h of this article. FOLLOWING
 SUCH  HEARING, THE COMMUNITY COUNCIL MAY PASS A RESOLUTION ON WHETHER TO
 RECOMMEND OR NOT RECOMMEND TO THE CITY BOARD THE PROPOSED SCHOOL CLOSING
 OR SIGNIFICANT CHANGE IN SCHOOL UTILIZATION, AND SHALL  TRANSMIT  IT  TO
 THE  CITY  BOARD FOR ITS CONSIDERATION AT LEAST SEVEN DAYS IN ADVANCE OF
 ANY CITY BOARD VOTE ON SUCH ITEM PURSUANT TO SECTION TWENTY-FIVE HUNDRED
 NINETY-G OF THIS ARTICLE, PROVIDED THAT THE RECEIPT OF  SUCH  RESOLUTION

 S. 1509--C                         233                        A. 2009--C
 
 FROM  THE  COMMUNITY  COUNCIL  SHALL  NOT BE A PRECONDITION FOR THE CITY
 BOARD TO ACT ON THE MATTER.
   § 43-f. Paragraph (h) of subdivision 1 of section 2590-g of the educa-
 tion  law,  as  added  by chapter 345 of the laws of 2009, is amended to
 read as follows:
   (h) approve proposals for all school closures or  significant  changes
 in  school  utilization  including the phase-out, grade reconfiguration,
 re-siting, or co-location of schools, following any hearing pursuant  to
 subdivision  two-a of section twenty-five hundred ninety-h of this arti-
 cle. IF THE CITY BOARD APPROVES SUCH A PROPOSAL THAT THE RELEVANT COMMU-
 NITY COUNCIL AFFIRMATIVELY VOTED AGAINST PURSUANT TO  SUBDIVISION  TWEN-
 TY-ONE  OF  SECTION  TWENTY-FIVE  HUNDRED  NINETY-E OF THIS ARTICLE, THE
 BOARD SHALL PROVIDE SUCH COUNCIL AN EXPLANATION FOR ITS DETERMINATION.
   § 43-g. Subparagraph (i) of paragraph (a) of subdivision 6 of  section
 2590-b  of  the  education  law,  as added by chapter 345 of the laws of
 2009, is amended to read as follows:
   (i) ten voting members who shall  be  parents  of  students  attending
 public  high  schools. [Two] FOR COUNCILS WHOSE TERMS BEGIN PRIOR TO TWO
 THOUSAND TWENTY, TWO members representing each borough shall be selected
 by presidents and officers of the parents' associations or parent-teach-
 ers' associations in the relevant borough, pursuant to a process  estab-
 lished by the chancellor. FOR COUNCILS WHOSE TERMS BEGIN IN TWO THOUSAND
 TWENTY-ONE  AND  THEREAFTER, TWO MEMBERS REPRESENTING EACH BOROUGH SHALL
 BE PARENTS OF PUBLIC HIGH  SCHOOL  STUDENTS  IN  THE  RELEVANT  BOROUGH,
 PURSUANT  TO A PROCESS ESTABLISHED BY THE CHANCELLOR. Such members shall
 serve a two year term, AND SHALL BE ELIGIBLE TO CONTINUE  SERVING  THEIR
 TERM  FOLLOWING  THE  CONCLUSION OF THEIR CHILD'S ATTENDANCE AT A PUBLIC
 HIGH SCHOOL;
   § 44. Section 7 of chapter 472 of  the  laws  of  1998,  amending  the
 education law relating to the lease of school buses by school districts,
 as  amended by section 40 of part YYY of chapter 59 of the laws of 2017,
 is amended to read as follows:
   § 7. This act shall take effect September 1, 1998[, and  shall  expire
 and be deemed repealed September 1, 2019].
   §  45.  Section  2  of  chapter  552 of the laws of 1995, amending the
 education law relating to contracts for  the  transportation  of  school
 children,  as  amended by section 25 of part A of chapter 54 of the laws
 of 2016, is amended to read as follows:
   § 2. This act shall take effect on  the  first  day  of  January  next
 succeeding the date on which it shall have become a law and shall remain
 in  full  force  and effect until January 1, [2020] 2023, when upon such
 date the provisions of this act shall be deemed repealed.
   § 46. Section 26 of subpart F of part C of chapter 97 of the  laws  of
 2011 amending the education law relating to census reporting, as amended
 by  section 21-a of part A of chapter 56 of the laws of 2014, is amended
 to read as follows:
   § 26. This act shall take effect immediately provided,  however,  that
 the provisions of section three of this act shall expire June 30, [2019]
 2024  when upon such date the provisions of such section shall be deemed
 repealed; provided, further that the provisions of sections eight, elev-
 en, twelve, thirteen and twenty of this act shall expire  July  1,  2014
 when  upon  such  date  the  provisions of such sections shall be deemed
 repealed.
   § 46-a. Section 8 of chapter 89  of  the  laws  of  2016  relating  to
 supplementary  funding for dedicated programs for public school students
 in the East Ramapo central school district, as amended by section 30  of

 S. 1509--C                         234                        A. 2009--C
 
 part  CCC  of  chapter  59  of  the  laws of 2018, is amended to read as
 follows:
   §  8.  This act shall take effect July 1, 2016 and shall expire and be
 deemed repealed June 30, [2019]  2020,  except  that  paragraph  (b)  of
 section  five of this act and section seven of this act shall expire and
 be deemed repealed June 30, 2021.
   § 47. School bus driver training. In addition to apportionments other-
 wise provided by section 3602 of the education law, for aid  payable  in
 the 2019--2020 school year, the commissioner of education shall allocate
 school  bus  driver  training  grants  to school districts and boards of
 cooperative educational services pursuant to sections 3650-a, 3650-b and
 3650-c of the education law, or for contracts directly with not-for-pro-
 fit educational organizations for the purposes  of  this  section.  Such
 payments  shall  not exceed four hundred thousand dollars ($400,000) per
 school year.
   § 48. Special apportionment for salary  expenses.  a.  Notwithstanding
 any  other  provision  of  law,  upon application to the commissioner of
 education, not sooner than the first day of  the  second  full  business
 week  of  June  2020  and  not later than the last day of the third full
 business week of June 2020, a school district eligible for an apportion-
 ment pursuant to section 3602 of the education law shall be eligible  to
 receive  an  apportionment pursuant to this section, for the school year
 ending June 30, 2020, for salary expenses incurred between April  1  and
 June 30, 2019 and such apportionment shall not exceed the sum of (i) the
 deficit  reduction assessment of 1990--1991 as determined by the commis-
 sioner of education, pursuant to paragraph f of subdivision 1 of section
 3602 of the education law, as in effect through June 30, 1993, plus (ii)
 186 percent of such amount for a city school district in a city  with  a
 population in excess of 1,000,000 inhabitants, plus (iii) 209 percent of
 such  amount  for  a city school district in a city with a population of
 more than 195,000 inhabitants and less than 219,000 inhabitants  accord-
 ing  to  the  latest  federal  census, plus (iv) the net gap elimination
 adjustment for 2010--2011, as determined by the commissioner  of  educa-
 tion pursuant to chapter 53 of the laws of 2010, plus (v) the gap elimi-
 nation  adjustment  for  2011--2012 as determined by the commissioner of
 education pursuant to subdivision 17 of section 3602  of  the  education
 law,  and provided further that such apportionment shall not exceed such
 salary expenses. Such application shall be made by  a  school  district,
 after the board of education or trustees have adopted a resolution to do
 so and in the case of a city school district in a city with a population
 in excess of 125,000 inhabitants, with the approval of the mayor of such
 city.
   b.  The  claim  for  an  apportionment to be paid to a school district
 pursuant to subdivision a of this section  shall  be  submitted  to  the
 commissioner  of  education  on  a form prescribed for such purpose, and
 shall be payable upon determination by such commissioner that  the  form
 has been submitted as prescribed. Such approved amounts shall be payable
 on  the  same  day in September of the school year following the year in
 which application was made as funds provided  pursuant  to  subparagraph
 (4) of paragraph b of subdivision 4 of section 92-c of the state finance
 law,  on  the  audit  and  warrant  of the state comptroller on vouchers
 certified or approved by the commissioner of  education  in  the  manner
 prescribed  by  law  from  moneys in the state lottery fund and from the
 general fund to the extent that the amount paid  to  a  school  district
 pursuant  to  this  section  exceeds the amount, if any, due such school
 district pursuant to subparagraph (2) of paragraph a of subdivision 1 of

 S. 1509--C                         235                        A. 2009--C
 
 section 3609-a of the education law in the  school  year  following  the
 year in which application was made.
   c.  Notwithstanding  the provisions of section 3609-a of the education
 law, an amount equal to the amount paid to a school district pursuant to
 subdivisions a and b of this section shall first be  deducted  from  the
 following  payments  due  the  school  district  during  the school year
 following the year in which application was made  pursuant  to  subpara-
 graphs  (1),  (2),  (3),  (4) and (5) of paragraph a of subdivision 1 of
 section 3609-a of the education law in the following order: the  lottery
 apportionment  payable  pursuant  to  subparagraph (2) of such paragraph
 followed by the fixed fall payments payable pursuant to subparagraph (4)
 of such paragraph and then followed by the district's  payments  to  the
 teachers'  retirement  system pursuant to subparagraph (1) of such para-
 graph, and any remainder to be deducted from the individualized payments
 due the district pursuant to paragraph b of such  subdivision  shall  be
 deducted on a chronological basis starting with the earliest payment due
 the district.
   §  49. Special apportionment for public pension accruals. a.  Notwith-
 standing any other provision of law, upon application to the commission-
 er of education, not later than June 30, 2020, a school district  eligi-
 ble  for  an apportionment pursuant to section 3602 of the education law
 shall be eligible to receive an apportionment pursuant to this  section,
 for  the  school  year ending June 30, 2020 and such apportionment shall
 not exceed the  additional  accruals  required  to  be  made  by  school
 districts  in the 2004--2005 and 2005--2006 school years associated with
 changes for such public pension liabilities. The amount  of  such  addi-
 tional  accrual  shall  be certified to the commissioner of education by
 the president of the board of education or the trustees or, in the  case
 of  a  city  school  district  in  a city with a population in excess of
 125,000 inhabitants, the mayor of such city. Such application  shall  be
 made by a school district, after the board of education or trustees have
 adopted  a resolution to do so and in the case of a city school district
 in a city with a population in excess of 125,000 inhabitants,  with  the
 approval of the mayor of such city.
   b.  The  claim  for  an  apportionment to be paid to a school district
 pursuant to subdivision a of this section  shall  be  submitted  to  the
 commissioner  of  education  on  a form prescribed for such purpose, and
 shall be payable upon determination by such commissioner that  the  form
 has been submitted as prescribed. Such approved amounts shall be payable
 on  the  same  day in September of the school year following the year in
 which application was made as funds provided  pursuant  to  subparagraph
 (4) of paragraph b of subdivision 4 of section 92-c of the state finance
 law,  on  the  audit  and  warrant  of the state comptroller on vouchers
 certified or approved by the commissioner of  education  in  the  manner
 prescribed  by  law  from  moneys in the state lottery fund and from the
 general fund to the extent that the amount paid  to  a  school  district
 pursuant  to  this  section  exceeds the amount, if any, due such school
 district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
 section 3609-a of the education law in the  school  year  following  the
 year in which application was made.
   c.  Notwithstanding  the provisions of section 3609-a of the education
 law, an amount equal to the amount paid to a school district pursuant to
 subdivisions a and b of this section shall first be  deducted  from  the
 following  payments  due  the  school  district  during  the school year
 following the year in which application was made  pursuant  to  subpara-
 graphs  (1),  (2),  (3),  (4) and (5) of paragraph a of subdivision 1 of

 S. 1509--C                         236                        A. 2009--C
 
 section 3609-a of the education law in the following order: the  lottery
 apportionment  payable  pursuant  to  subparagraph (2) of such paragraph
 followed by the fixed fall payments payable pursuant to subparagraph (4)
 of  such  paragraph  and then followed by the district's payments to the
 teachers' retirement system pursuant to subparagraph (1) of  such  para-
 graph, and any remainder to be deducted from the individualized payments
 due  the  district  pursuant to paragraph b of such subdivision shall be
 deducted on a chronological basis starting with the earliest payment due
 the district.
   § 50. Notwithstanding the provision of any law, rule, or regulation to
 the contrary, the city school district of the city  of  Rochester,  upon
 the  consent  of  the  board  of cooperative educational services of the
 supervisory district serving its geographic  region  may  purchase  from
 such  board  for  the  2019--2020 school year, as a non-component school
 district, services required by article 19 of the education law.
   § 51. The amounts specified in this section shall be a set-aside  from
 the  state  funds  which  each such district is receiving from the total
 foundation aid:
   a. for the development, maintenance or expansion of magnet schools  or
 magnet  school  programs  for  the  2019--2020 school year. For the city
 school district of the city of New York there shall  be  a  setaside  of
 foundation  aid  equal  to  forty-eight million one hundred seventy-five
 thousand dollars ($48,175,000) including five hundred  thousand  dollars
 ($500,000)  for  the  Andrew  Jackson  High School; for the Buffalo city
 school  district,  twenty-one  million  twenty-five   thousand   dollars
 ($21,025,000);  for  the Rochester city school district, fifteen million
 dollars ($15,000,000); for the Syracuse city school  district,  thirteen
 million  dollars  ($13,000,000);  for  the Yonkers city school district,
 forty-nine million five hundred thousand dollars ($49,500,000); for  the
 Newburgh city school district, four million six hundred forty-five thou-
 sand  dollars  ($4,645,000);  for the Poughkeepsie city school district,
 two million four hundred seventy-five thousand dollars ($2,475,000); for
 the Mount Vernon city school district, two million dollars ($2,000,000);
 for the New Rochelle city school district, one million four hundred  ten
 thousand dollars ($1,410,000); for the Schenectady city school district,
 one  million  eight  hundred thousand dollars ($1,800,000); for the Port
 Chester city school district, one million  one  hundred  fifty  thousand
 dollars  ($1,150,000);  for  the White Plains city school district, nine
 hundred thousand dollars ($900,000); for the Niagara Falls  city  school
 district,  six  hundred thousand dollars ($600,000); for the Albany city
 school district, three  million  five  hundred  fifty  thousand  dollars
 ($3,550,000);  for  the  Utica city school district, two million dollars
 ($2,000,000); for the Beacon city school district, five  hundred  sixty-
 six   thousand  dollars  ($566,000);  for  the  Middletown  city  school
 district, four hundred thousand dollars  ($400,000);  for  the  Freeport
 union  free  school  district, four hundred thousand dollars ($400,000);
 for the Greenburgh  central  school  district,  three  hundred  thousand
 dollars  ($300,000);  for  the  Amsterdam  city  school  district, eight
 hundred thousand dollars  ($800,000);  for  the  Peekskill  city  school
 district,  two  hundred  thousand dollars ($200,000); and for the Hudson
 city school district, four hundred thousand dollars ($400,000).
   b. Notwithstanding any inconsistent provision of law to the  contrary,
 a  school  district  setting  aside such foundation aid pursuant to this
 section may use such  setaside  funds  for:  (i)  any  instructional  or
 instructional  support  costs  associated with the operation of a magnet
 school; or

 S. 1509--C                         237                        A. 2009--C
 
   (ii) any instructional or instructional support costs associated  with
 implementation  of  an  alternative approach to promote diversity and/or
 enhancement of the instructional program and  raising  of  standards  in
 elementary  and secondary schools of school districts having substantial
 concentrations of minority students.
   c.  The  commissioner of education shall not be authorized to withhold
 foundation aid from a school district that used such funds in accordance
 with this paragraph, notwithstanding any inconsistency  with  a  request
 for  proposals issued by such commissioner for the purpose of attendance
 improvement and dropout prevention for the 2019--2020 school  year,  and
 for  any city school district in a city having a population of more than
 one  million,  the  setaside  for  attendance  improvement  and  dropout
 prevention  shall  equal  the amount set aside in the base year. For the
 2019--2020 school year, it is further  provided  that  any  city  school
 district  in  a  city having a population of more than one million shall
 allocate at least one-third of any increase from  base  year  levels  in
 funds set aside pursuant to the requirements of this section to communi-
 ty-based  organizations.  Any increase required pursuant to this section
 to community-based organizations must  be  in  addition  to  allocations
 provided to community-based organizations in the base year.
   d.  For the purpose of teacher support for the 2019--2020 school year:
 for the city school district of the city of New York, sixty-two  million
 seven hundred seven thousand dollars ($62,707,000); for the Buffalo city
 school  district,  one  million seven hundred forty-one thousand dollars
 ($1,741,000); for the Rochester city school district, one million seven-
 ty six thousand  dollars  ($1,076,000);  for  the  Yonkers  city  school
 district,   one   million   one  hundred  forty-seven  thousand  dollars
 ($1,147,000); and for the Syracuse city school district,  eight  hundred
 nine  thousand  dollars ($809,000). All funds made available to a school
 district pursuant to this section shall be  distributed  among  teachers
 including  prekindergarten teachers and teachers of adult vocational and
 academic subjects in accordance with this section and shall be in  addi-
 tion  to  salaries heretofore or hereafter negotiated or made available;
 provided, however, that all funds distributed pursuant to  this  section
 for  the  current year shall be deemed to incorporate all funds distrib-
 uted pursuant to former subdivision 27 of section 3602 of the  education
 law  for prior years. In school districts where the teachers are repres-
 ented by certified or  recognized  employee  organizations,  all  salary
 increases  funded  pursuant to this section shall be determined by sepa-
 rate collective negotiations conducted pursuant to  the  provisions  and
 procedures  of  article 14 of the civil service law, notwithstanding the
 existence of a negotiated agreement between  a  school  district  and  a
 certified or recognized employee organization.
   §  52.  Support  of  public libraries. The moneys appropriated for the
 support of public libraries by a chapter of the laws  of  2018  enacting
 the  aid  to  localities  budget shall be apportioned for the 2019--2020
 state fiscal year in accordance with the  provisions  of  sections  271,
 272,  273,  282,  284,  and  285  of the education law as amended by the
 provisions of this chapter and the provisions of this section,  provided
 that library construction aid pursuant to section 273-a of the education
 law  shall  not  be  payable  from the appropriations for the support of
 public libraries and provided further that no library, library system or
 program, as defined by the commissioner of education, shall receive less
 total system or program aid than it received  for  the  year  2001--2002
 except as a result of a reduction adjustment necessary to conform to the
 appropriations for support of public libraries.

 S. 1509--C                         238                        A. 2009--C
 
   Notwithstanding  any other provision of law to the contrary the moneys
 appropriated for the support of public libraries for the year 2019--2020
 by a chapter of the laws of 2019 enacting the education, labor and fami-
 ly assistance budget shall fulfill the  state's  obligation  to  provide
 such aid and, pursuant to a plan developed by the commissioner of educa-
 tion  and  approved  by  the  director of the budget, the aid payable to
 libraries and library systems pursuant to such appropriations  shall  be
 reduced  proportionately  to assure that the total amount of aid payable
 does not exceed the total appropriations for such purpose.
   § 52-a. Subdivision a of section 5 of chapter 121 of the laws of 1996,
 relating to authorizing the Roosevelt  union  free  school  district  to
 finance  deficits by the issuance of serial bonds, as amended by section
 42-a of part CCC of chapter 59 of the laws of 2018, is amended  to  read
 as follows:
   a.  Notwithstanding  any  other provisions of law, upon application to
 the commissioner of education submitted not sooner than April first  and
 not  later than June thirtieth of the applicable school year, the Roose-
 velt union free school district shall be eligible to receive  an  appor-
 tionment pursuant to this chapter for salary expenses, including related
 benefits, incurred between April first and June thirtieth of such school
 year.   Such apportionment shall not exceed: for the 1996-97 school year
 through  the  [2018-19]  2019-20  school  year,  four  million   dollars
 ($4,000,000);  for  the  [2019-20]  2020-21  school  year, three million
 dollars ($3,000,000); for the [2020-21] 2021-22 school year, two million
 dollars ($2,000,000); for the [2021-22] 2022-23 school year, one million
 dollars ($1,000,000); and for the [2022-23] 2023-24  school  year,  zero
 dollars.    Such  annual  application  shall  be made after the board of
 education has adopted a resolution to do so with  the  approval  of  the
 commissioner of education.
   §  52-b. Paragraph c of subdivision 4 of section 3641 of the education
 law is amended by adding a new subparagraph 1-a to read as follows:
   (1-A) COMMENCING NO SOONER THAN THE FIRST DAY IN JANUARY, TWO THOUSAND
 TWENTY, THE COMMISSIONER  SHALL  REQUIRE  SCHOOL  DISTRICTS  TO  CONDUCT
 BUILDING  CONDITION  SURVEYS  EVERY  FIVE YEARS IN ACCORDANCE WITH REGU-
 LATIONS OF THE COMMISSIONER. SUCH REGULATIONS SHALL PRESCRIBE  THE  DATE
 OR  DATES  BY  WHICH SUCH SURVEYS MUST BE COMPLETED AND SUBMITTED TO THE
 DEPARTMENT AND SHALL PROVIDE FOR STAGGERED IMPLEMENTATION SO  THAT  SUCH
 SURVEYS  ARE  DISTRIBUTED AS EVENLY AS POSSIBLE THROUGHOUT THE FIVE-YEAR
 PERIOD BASED ON THE NUMBER OF PUBLIC  SCHOOL  BUILDINGS,  PROVIDED  THAT
 SUCH IMPLEMENTATION SCHEDULE SHALL ENSURE THAT NO REGION OF THE STATE IS
 OVERREPRESENTED  IN A GIVEN SCHEDULED YEAR AND SHALL TO THE EXTENT PRAC-
 TICABLE PRIORITIZE ASSIGNING TO THE FIRST TWO  YEARS  OF  SUCH  SCHEDULE
 THOSE  SCHOOL DISTRICTS WITH THE GREATEST PROPORTIONS OF BUILDINGS WHICH
 PREVIOUSLY RECEIVED RELATIVELY LOW OVERALL CONDITION RATINGS.
   § 52-c. Subdivision 6-e of section  3602  of  the  education  law,  as
 amended  by  chapter  296  of  the  laws  of 2016, is amended to read as
 follows:
   6-e. Additional apportionment of building aid for  building  condition
 surveys  of  school buildings. In addition to the apportionments payable
 to a school district pursuant to subdivision six of  this  section,  the
 commissioner  is  hereby  authorized to apportion to any school district
 additional building aid in accordance  with  this  subdivision  for  its
 approved  expenses  in  the  base year for building condition surveys of
 school buildings that are conducted pursuant  to  this  subdivision  and
 subdivision  four  of section thirty-six hundred forty-one of this arti-
 cle. The amount of such apportionment shall equal  the  product  of  the

 S. 1509--C                         239                        A. 2009--C
 
 building aid ratio defined pursuant to paragraph c of subdivision six of
 this  section  and the actual approved expenses incurred by the district
 in the base year for each school building so  inspected,  provided  that
 the amount of such apportionment shall not exceed the building condition
 survey  aid  ceiling[,  and provided further that such approved expenses
 shall include approved expenses for testing of potable water systems for
 lead contamination pursuant to section eleven hundred ten of the  public
 health law]. For surveys conducted in the nineteen hundred ninety-eight-
 -ninety-nine  school  year,  the building condition aid ceiling shall be
 twenty cents gross per square foot of floor area. For surveys  conducted
 in the nineteen hundred ninety-nine--two thousand school year and there-
 after, the inspection aid ceiling shall be twenty cents gross per square
 foot  of  floor  area,  plus  an  amount computed by the commissioner in
 accordance with regulations adopted for such purpose, on the basis of an
 index number reflecting changes in the costs of labor and materials from
 July first, nineteen hundred ninety-eight.
   § 52-d. Subdivision 6-h of section 3602 of the education law, as added
 by chapter 296 of the laws of 2016, is amended to read as follows:
   6-h. Building aid for testing and filtering of potable  water  systems
 for  lead  contamination. In addition to the apportionments payable to a
 school district pursuant to subdivision six of this section, the commis-
 sioner is hereby authorized to apportion to any  school  district  addi-
 tional  building  aid  pursuant  to  this  subdivision  for its approved
 expenditures, otherwise ineligible for building aid, in  the  base  year
 for  the  testing  of potable water systems required pursuant to section
 eleven hundred ten of the public health law and for the installation  of
 filters  and/or  other effective remedial measures for immediate remedi-
 ation in cases where a finding of lead contamination is made pursuant to
 such section and verified by confirmatory sampling,  provided  that  the
 cost  of  installation  of  such filters and/or other effective remedial
 measures shall be deemed  an  approved  expenditure  only  if  (i)  such
 installation and/or other effective remedial measures have been approved
 or reviewed by a professional with expertise in the field of water qual-
 ity  and remediation and (ii) such cost is incurred prior to July first,
 two thousand nineteen. Such aid shall equal the product of the  building
 aid  ratio  defined  pursuant  to paragraph c of subdivision six of this
 section and the actual approved expenditures incurred in the  base  year
 pursuant  to this subdivision.  COMMENCING IN THE TWO THOUSAND NINETEEN-
 -TWO THOUSAND TWENTY SCHOOL YEAR AND EVERY YEAR  THEREAFTER,  ADDITIONAL
 BUILDING  AID  PURSUANT  TO  THIS  SUBDIVISION  SHALL  INCLUDE  APPROVED
 EXPENSES FOR TESTING OF POTABLE WATER  SYSTEMS  FOR  LEAD  CONTAMINATION
 PURSUANT TO SECTION ELEVEN HUNDRED TEN OF THE PUBLIC HEALTH LAW.
   §  52-e. Paragraph (a) of subdivision 2 of section 409-e of the educa-
 tion law, as added by section 1 of part B of chapter 56 of the  laws  of
 1998, is amended to read as follows:
   (a)  [Every  public  school  building  shall  be inspected annually in
 accordance with the code, provided however, the]  THE  commissioner  may
 require [more frequent] inspections OF PUBLIC SCHOOL BUILDINGS as deemed
 necessary  to maintain the safety of school buildings and the welfare of
 their occupants.
   § 52-f. Subdivision 1 of section 409-d of the education law, as  added
 by  section 1 of part B of chapter 56 of the laws of 1998, is amended to
 read as follows:
   1. Program establishment. The commissioner is authorized and  directed
 to establish, develop and monitor a comprehensive public school building
 safety  program  which shall include a uniform inspection, safety rating

 S. 1509--C                         240                        A. 2009--C
 
 and  monitoring  system.  Such  program  shall   require   the   [annual
 inspection]  INSPECTIONS  of all public school buildings throughout [New
 York] THE state[;] (I) AT LEAST ONCE BETWEEN THE PERIOD COMMENCING  WITH
 THE  FIRST DAY OF JANUARY, TWO THOUSAND TWENTY AND ENDING WITH THE THIR-
 TY-FIRST DAY OF DECEMBER, TWO THOUSAND TWENTY AND  (II)  AT  LEAST  ONCE
 BETWEEN  THE  PERIOD COMMENCING WITH THE FIRST DAY OF JANUARY, TWO THOU-
 SAND TWENTY-TWO AND ENDING WITH THE THIRTY-FIRST DAY  OF  DECEMBER,  TWO
 THOUSAND TWENTY-TWO, PROVIDED THAT SUCH INSPECTIONS SHALL EXCLUDE PUBLIC
 SCHOOL  BUILDINGS  IN  A  SCHOOL  DISTRICT  REQUIRED TO CONDUCT BUILDING
 CONDITION SURVEYS BETWEEN JANUARY FIRST, TWO THOUSAND TWENTY AND THE END
 OF SUCH PERIOD  IN  ACCORDANCE  WITH  REGULATIONS  OF  THE  COMMISSIONER
 ADOPTED  PURSUANT  TO  SUBPARAGRAPH  ONE-A OF PARAGRAPH C OF SUBDIVISION
 FOUR OF SECTION  THIRTY-SIX  HUNDRED  FORTY-ONE  OF  THIS  CHAPTER,  AND
 PROVIDED  FURTHER  THAT  SUCH EXCLUSION SHALL NOT APPLY IN THE CASE OF A
 SCHOOL DISTRICT WHICH HAS NOT COMPLETED THE BUILDING  CONDITION  SURVEYS
 SO  REQUIRED  AND  SUBMITTED  THE  SAME  TO  THE  DEPARTMENT. UNDER SUCH
 PROGRAM, THE COMMISSIONER  MAY  REQUIRE  INSPECTIONS  OF  PUBLIC  SCHOOL
 BUILDINGS AS DEEMED NECESSARY TO MAINTAIN THE SAFETY OF SCHOOL BUILDINGS
 AND  THE  WELFARE  OF  THE OCCUPANTS, AND SUCH PROGRAM SHALL establish a
 safety rating system for such school buildings to assess  the  need  for
 maintenance,  repairs,  rehabilitation, reconstruction, construction and
 other improvements related to the structural integrity and overall safe-
 ty of public school buildings including  but  not  limited  to  building
 systems  related  to electrical, plumbing, heating, ventilation, and air
 conditioning, sanitation and health, fire and accident  protection;  and
 require that such ratings be used for the purpose of developing a build-
 ings  condition  survey  as  required  pursuant  to  subdivision four of
 section thirty-six hundred forty-one of this chapter  and  a  five  year
 facilities  plan  as required pursuant to clause (i) of subparagraph two
 of paragraph b of subdivision six of section thirty-six hundred  two  of
 this chapter.
   §  52-g.  Paragraphs  b  and  c of subdivision 1 of section 6-r of the
 general municipal law, as added by chapter 260 of the laws of 2004,  are
 amended to read as follows:
   b.  "Participating  employer"  means:  (I) a participating employer as
 defined in subdivision twenty of  section  two  of  the  retirement  and
 social  security  law  or in subdivision twenty of section three hundred
 two of such law; OR (II) A PARTICIPATING EMPLOYER AS DEFINED IN SUBDIVI-
 SION THREE OF SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW.
   c. "Retirement contribution" shall mean all  or  any  portion  of  the
 amount  payable  by  a municipal corporation to: (I) either the New York
 state and local employees' retirement system or the New York  state  and
 local police and fire retirement system pursuant to section seventeen or
 three  hundred  seventeen  of the retirement and social security law; OR
 (II) THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO  SECTION
 FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW.
   §  52-h. Subdivision 2 of section 6-r of the general municipal law, as
 added by chapter 260 of the laws of 2004, is amended to read as follows:
   2. The governing board of any municipal corporation which  is  also  a
 participating employer by resolution may establish a retirement contrib-
 ution  reserve fund for the purpose of (A) financing retirement contrib-
 utions, AND/OR (B) IN THE CASE OF A MUNICIPAL  CORPORATION  WHICH  IS  A
 PARTICIPATING  EMPLOYER  AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE
 HUNDRED ONE OF THE EDUCATION LAW, FINANCING APPROPRIATIONS AUTHORIZED BY
 LAW IN ORDER TO OFFSET ALL OR A PORTION OF THE AMOUNT DEDUCTED FROM  THE
 MONEYS  APPORTIONED  TO THE MUNICIPAL CORPORATION FROM THE STATE FOR THE

 S. 1509--C                         241                        A. 2009--C

 SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF
 THE EDUCATION LAW.
   §  52-i. Section 6-r of the general municipal law is amended by adding
 a new subdivision 2-a to read as follows:
   2-A. WITH RESPECT TO A MUNICIPAL CORPORATION WHICH IS A  PARTICIPATING
 EMPLOYER  AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE HUNDRED ONE OF
 THE EDUCATION LAW, WHICH ELECTS TO  UTILIZE  A  RETIREMENT  CONTRIBUTION
 RESERVE  FUND  (A)  TO  FINANCE RETIREMENT CONTRIBUTIONS TO THE NEW YORK
 STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO SECTION FIVE HUNDRED TWEN-
 TY-ONE OF THE EDUCATION LAW AND/OR (B) TO OFFSET ALL OR A PORTION OF THE
 AMOUNT DEDUCTED FROM THE MONEYS APPORTIONED TO THE MUNICIPAL CORPORATION
 FROM THE STATE FOR THE SUPPORT OF COMMON  SCHOOLS  PURSUANT  TO  SECTION
 FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW, SUCH MUNICIPAL CORPORATION
 SHALL  ESTABLISH  A  SUB-FUND WITHIN THE RETIREMENT CONTRIBUTION RESERVE
 FUND,  WHICH  SHALL  BE  SEPARATELY  ADMINISTERED  CONSISTENT  WITH  THE
 PROVISIONS OF THIS SECTION. SUCH MUNICIPAL CORPORATION MAY PAY INTO SUCH
 SUB-FUND  DURING  ANY PARTICULAR FISCAL YEAR AN AMOUNT NOT TO EXCEED TWO
 PER CENTUM OF THE TOTAL COMPENSATION OR SALARIES OF ALL TEACHERS IN  THE
 EMPLOY  OF  SAID  MUNICIPAL  CORPORATION WHO ARE MEMBERS OF THE NEW YORK
 STATE TEACHERS' RETIREMENT SYSTEM PAID DURING THE IMMEDIATELY  PRECEDING
 FISCAL  YEAR. THE BALANCE OF SUCH SUB-FUND MAY NOT EXCEED TEN PER CENTUM
 OF THE TOTAL COMPENSATION OR SALARIES OF ALL TEACHERS IN THE  EMPLOY  OF
 THE  MUNICIPAL  CORPORATION WHO ARE MEMBERS OF THE NEW YORK STATE TEACH-
 ERS' RETIREMENT SYSTEM PAID  DURING  THE  IMMEDIATELY  PRECEDING  FISCAL
 YEAR.  FOR  THE  PURPOSES  OF THIS SUBDIVISION, THE TERM "TEACHER" SHALL
 HAVE THE SAME MEANING AS SUCH TERM IS DEFINED UNDER SUBDIVISION FOUR  OF
 SECTION FIVE HUNDRED ONE OF THE EDUCATION LAW.
   §  52-j. Subdivision 5 of section 6-r of the general municipal law, as
 added by chapter 260 of the laws of 2004, is amended to read as follows:
   5. The governing board of such municipal corporation by resolution may
 authorize expenditures from  a  retirement  contribution  reserve  fund.
 Except as otherwise provided by law, moneys in a retirement contribution
 reserve  fund  may  only  be expended (A) to finance retirement contrib-
 utions, AND/OR (B) IN THE CASE OF A MUNICIPAL  CORPORATION  WHICH  IS  A
 PARTICIPATING  EMPLOYER, AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE
 HUNDRED ONE OF THE EDUCATION LAW, FOR APPROPRIATIONS AUTHORIZED  BY  LAW
 IN  ORDER  TO  OFFSET  ALL  OR A PORTION OF THE AMOUNT DEDUCTED FROM THE
 MONEYS APPORTIONED TO THE PARTICIPATING EMPLOYER FROM THE STATE FOR  THE
 SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION FIVE HUNDRED TWENTY-ONE OF
 THE  EDUCATION  LAW.  WITH RESPECT TO A MUNICIPAL CORPORATION WHICH IS A
 PARTICIPATING EMPLOYER AS DEFINED IN SUBDIVISION THREE OF  SECTION  FIVE
 HUNDRED  ONE  OF  THE  EDUCATION  LAW,  EXPENDITURES FROM THE RETIREMENT
 CONTRIBUTION RESERVE FUND TO FINANCE RETIREMENT CONTRIBUTIONS TO THE NEW
 YORK STATE TEACHERS' RETIREMENT SYSTEM PURSUANT TO SECTION FIVE  HUNDRED
 TWENTY-ONE OF THE EDUCATION LAW AND/OR TO OFFSET ALL OR A PORTION OF THE
 AMOUNT DEDUCTED FROM THE MONEYS APPORTIONED TO THE MUNICIPAL CORPORATION
 FROM  THE  STATE  FOR  THE SUPPORT OF COMMON SCHOOLS PURSUANT TO SECTION
 FIVE HUNDRED TWENTY-ONE OF THE EDUCATION LAW MAY ONLY BE MADE  FROM  THE
 SUB-FUND ESTABLISHED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION.
   §  52-k. Section 6-r of the general municipal law is amended by adding
 a new subdivision 11 to read as follows:
   11. THE GOVERNING BOARD OF A MUNICIPAL CORPORATION WHICH IS A  PARTIC-
 IPATING EMPLOYER AS DEFINED IN SUBDIVISION THREE OF SECTION FIVE HUNDRED
 ONE OF THE EDUCATION LAW BY RESOLUTION MAY (A) AUTHORIZE THE TRANSFER OF
 ALL  OR  A PORTION OF THE MONIES IN THE SEPARATELY ADMINISTERED SUB-FUND
 AS ESTABLISHED UNDER SUBDIVISION TWO-A OF THIS SECTION TO THE RETIREMENT

 S. 1509--C                         242                        A. 2009--C
 
 CONTRIBUTION RESERVE FUND, AND/OR (B) AUTHORIZE THE TRANSFER OF ALL OR A
 PORTION OF THE MONIES IN THE RETIREMENT CONTRIBUTION RESERVE FUND TO THE
 SEPARATELY ADMINISTERED SUB-FUND AS PROVIDED  IN  SUBDIVISION  TWO-A  OF
 THIS SECTION, SUBJECT TO THE LIMITS ON ANNUAL PAYMENTS INTO THE SUB-FUND
 AND  THE  BALANCE OF THE SUB-FUND SPECIFIED BY SUBDIVISION TWO-A OF THIS
 SECTION.
   § 52-l. Subparagraph 2 of paragraph a of subdivision 4 of section 1950
 of the education law, as amended by chapter 698 of the laws of 2003,  is
 amended to read as follows:
   (2)  Notwithstanding  any  inconsistent  provision  of law in no event
 shall the total salary including amounts paid pursuant to section  twen-
 ty-two  hundred  nine  of this chapter for district superintendents [for
 each school year through the two thousand two--two thousand three school
 year exceed ninety-eight percent of that earned by the commissioner  for
 state  fiscal  year nineteen hundred ninety-two--ninety-three, and in no
 event shall such total salary for a district superintendent] for the two
 thousand [three] NINETEEN--two thousand [four] TWENTY school year or any
 subsequent school year exceed: (i) one hundred six percent of the salary
 cap applicable in  the  preceding  school  year,  or  (ii)  ninety-eight
 percent  of  that earned by the commissioner in the two thousand [three]
 THIRTEEN--two thousand [four] FOURTEEN state fiscal year,  whichever  is
 less.  In  no  event  shall  any district superintendent be permitted to
 accumulate vacation or sick leave credits in excess of the vacation  and
 sick  leave  credits  managerial/confidential employees of the state are
 permitted to accumulate pursuant to regulations promulgated by the state
 civil service commission, nor may any  district  superintendent  at  the
 time  of  separation  from service be compensated for accrued and unused
 vacation credits or sick leave, or use accrued and unused sick leave for
 retirement service credit or to pay for health insurance in  retirement,
 at  a  rate  in  excess of the rate permitted to managerial/confidential
 employees of the state  pursuant  to  regulations  of  the  state  civil
 service  commission. In addition to the payment of supplementary salary,
 a board of cooperative educational services may provide for the  payment
 of  all  or a portion of the cost of insurance benefits for the district
 superintendent of schools, including but not limited  to  health  insur-
 ance,  disability  insurance, life insurance or any other form of insur-
 ance benefit made available to managerial/confidential employees of  the
 state;  provided  that any such payments for whole life, split dollar or
 other life insurance policies having a cash value shall be  included  in
 the  total  salary  of  the district superintendent for purposes of this
 subparagraph, and provided further that any payments  for  the  employee
 contribution, co-pay or uncovered medical expenses under a health insur-
 ance  plan  also  shall  be included in the total salary of the district
 superintendent.  Notwithstanding any other provision  of  law,  payments
 for  such  insurance  benefits  may be based on the district superinten-
 dent's total salary or the amount of his  or  her  supplementary  salary
 only.  Any  payments  for transportation or travel expenses in excess of
 actual, documented expenses incurred in the performance  of  duties  for
 the  board  of  cooperative  educational  services or the state, and any
 other lump sum payment  not  specifically  excluded  from  total  salary
 pursuant  to this subparagraph, shall be included in the total salary of
 the district superintendent for purposes of this  subparagraph.  Nothing
 herein  shall prohibit a district superintendent from waiving any rights
 provided for in an existing contract or agreement as hereafter prohibit-
 ed in favor of revised compensation or benefit provisions  as  permitted
 herein.  In  no  event  shall the terms of the district superintendent's

 S. 1509--C                         243                        A. 2009--C
 
 contract, including any provisions relating to an  increase  in  salary,
 compensation  or  other  benefits,  be  contingent upon the terms of any
 contract or collective bargaining agreement between the board of cooper-
 ative  educational  services  and  its  teachers or other employees. The
 commissioner may adopt regulations for the purpose of  implementing  the
 provisions of this paragraph.
   §  52-m.  A  chapter  of  the laws of 2019, amending the education law
 relating to state assessments and teacher evaluations,  as  proposed  in
 legislative bill numbers S. 1262 and A. 783, is REPEALED.
   § 53. Severability. The provisions of this act shall be severable, and
 if  the  application  of  any  clause, sentence, paragraph, subdivision,
 section or part of this act to  any  person  or  circumstance  shall  be
 adjudged  by  any  court  of  competent jurisdiction to be invalid, such
 judgment shall not necessarily affect, impair or invalidate the applica-
 tion of any such clause, sentence, paragraph, subdivision, section, part
 of this act or remainder thereof, as the  case  may  be,  to  any  other
 person  or  circumstance,  but shall be confined in its operation to the
 clause,  sentence,  paragraph,  subdivision,  section  or  part  thereof
 directly  involved  in the controversy in which such judgment shall have
 been rendered.
   § 54. This act shall take effect immediately, and shall be  deemed  to
 have been in full force and effect on and after April 1, 2019, provided,
 however, that:
   1.  Sections  one,  three, four, five, five-a, five-b, five-c, five-d,
 six, seven, eight, nine, ten, sixteen,  seventeen,  eighteen,  nineteen,
 twenty-one,  twenty-two,  twenty-three, thirty-two, thirty-four, thirty-
 seven-a, forty-seven, fifty, fifty-one and fifty-two-a of this act shall
 take effect July 1, 2019;
   2. Sections eleven, twelve, thirteen and fourteen of  this  act  shall
 take effect July 1, 2020;
   3.  Paragraph  (a)  of subdivision 7-a of section 804 of the education
 law, as added by section thirty-three of this  act,  shall  take  effect
 July 1, 2019;
   4. The amendments to section 3614 of the education law made by section
 two of this act shall not affect the repeal of such section and shall be
 deemed repealed therewith;
   5.  The  amendments  to  chapter  756 of the laws of 1992, relating to
 funding a program for work force education conducted by  the  consortium
 for  worker  education in New York City made by sections thirty-five and
 thirty-six of this act shall not affect the repeal of such  chapter  and
 shall be deemed repealed therewith;
   6.  The  amendments  to  sections  2590-b,  2590-c, 2590-e, 2590-h and
 2590-g  of  the  education   law   made   by   sections   forty-three-a,
 forty-three-b,  forty-three-c,  forty-three-d,  forty-three-e and forty-
 three-f of this act shall not affect the expiration or  repeal  of  such
 provisions and shall expire and be deemed repealed therewith; and
   7.  Section fifty-two-f of this act shall take effect on the same date
 as  the reversion of subdivision 1 of section 409-d of the education law
 as provided in section 3 of chapter 437 of the laws of 2014.

                                 PART ZZZ
 
   Section 1. This act shall be known and may be cited as the "MTA reform
 and traffic mobility act".
   § 2. This enacts into law major components of  legislation  which  are
 necessary  to enact the MTA reform and traffic mobility act. Each compo-

 S. 1509--C                         244                        A. 2009--C
 
 nent is wholly contained within  a  Subpart  identified  as  Subparts  A
 through  F.  The  effective date for each particular provision contained
 within such Subpart is set forth in the last section  of  such  Subpart.
 Any  provision  in any section contained within a Subpart, including the
 effective date of the Subpart, which makes reference to  a  section  "of
 this act", when used in connection with that particular component, shall
 be  deemed to mean and refer to the corresponding section of the Subpart
 in which it is found. Section four of this act sets  forth  the  general
 effective date of this act.
 
                                 SUBPART A
 
   Section  1.  The  vehicle  and  traffic law is amended by adding a new
 article 44-C to read as follows:
                               ARTICLE 44-C
                 CENTRAL BUSINESS DISTRICT TOLLING PROGRAM
 SECTION 1701.   LEGISLATIVE FINDINGS AND DECLARATION.
         1702.   SHORT TITLE.
         1703.   DEFINITIONS.
         1704.   ESTABLISHMENT  OF  CENTRAL  BUSINESS  DISTRICT   TOLLING
                   PROGRAM.
         1704-A. CENTRAL BUSINESS DISTRICT TOLL.
         1705.   DISPOSITION OF REVENUE AND PENALTIES.
         1706.   REPORTING.
   §  1701. LEGISLATIVE FINDINGS AND DECLARATION. THE ONGOING FAILURES OF
 THE TRACKS, SIGNALS, SWITCHES, ELECTRICAL POWER, AND  OTHER  TRANSPORTA-
 TION INFRASTRUCTURE THROUGHOUT THE SUBWAY SYSTEM IN THE CITY OF NEW YORK
 CONTINUE TO HAVE A SIGNIFICANT DELETERIOUS IMPACT ON THE HEALTH, SAFETY,
 AND  LIVELIHOOD OF COMMUTERS, TOURISTS, RESIDENT NEW YORKERS, AS WELL AS
 BUSINESS  AND  COMMERCE  IN  THE  METROPOLITAN  COMMUTER  TRANSPORTATION
 DISTRICT,  WHICH  IS  THE RECOGNIZED ECONOMIC ENGINE OF THE STATE OF NEW
 YORK, AND THEREBY HAVE ADVERSELY AFFECTED THE ECONOMY OF  THE  STATE  OF
 NEW  YORK.  TEMPORARY  ACTIONS  HAVE BEEN TAKEN TO ADDRESS THE SAFETY OF
 SUBWAY, BUS AND COMMUTER RAIL RIDERS IN  THE  SHORT  TERM  INCLUDING  AN
 EMERGENCY  DECLARATION  AND INCREASED CAPITAL FUNDING FOR THE SUBWAYS IN
 THE MOST RECENTLY ADOPTED STATE BUDGET. THE LEGISLATURE, HOWEVER, DETER-
 MINES THAT A LONG-TERM AND SUSTAINABLE SOLUTION IS NECESSARY IN ORDER TO
 ENSURE STABLE AND RELIABLE FUNDING TO REPAIR AND REVITALIZE THIS SIGNIF-
 ICANTLY IMPORTANT MASS TRANSIT ASSET.
   THE LEGISLATURE FURTHER FINDS AND DECLARES THAT TRAFFIC CONGESTION  IN
 THE  CITY  OF  NEW  YORK  RANKS  SECOND WORST AMONG CITIES IN THE UNITED
 STATES AND THIRD WORST AMONG CITIES IN THE WORLD, AND RESULTS IN SIGNIF-
 ICANT COST TO THE NEW YORK METROPOLITAN AREA ECONOMY  AND  IN  TURN  THE
 STATE'S  ECONOMY AT ESTIMATES EXCEEDING ONE HUNDRED BILLION DOLLARS OVER
 THE NEXT FIVE YEARS. TRAVEL SPEEDS IN THE CITY  OF  NEW  YORK'S  CENTRAL
 BUSINESS  DISTRICT HAVE DROPPED MORE THAN SEVENTEEN PERCENT IN TWO THOU-
 SAND SIXTEEN TO AN AVERAGE OF 6.8 MILES PER HOUR AND IN MIDTOWN  MANHAT-
 TAN,  THE  MOST  CONGESTED  AREA  OF  THE CITY-THE AREA FROM FIFTY-NINTH
 STREET TO THIRTY-FIFTH STREET AND FROM NINTH AVENUE TO THE  EAST  RIVER-
 THE  AVERAGE VEHICULAR SPEED IS 4.7 MILES PER HOUR.  CONGESTION IN THESE
 AREAS IS CRIPPLING AND IMPACTS THE EVERYDAY LIVES OF  RESIDENTS,  COMMU-
 TERS,  TAXI  AND  FOR-HIRE  VEHICLE  TRAFFIC,  BUS TRANSIT AND EMERGENCY
 SERVICES, AND IS A SIGNIFICANT CONTRIBUTOR TO DECREASED AIR QUALITY.
   THESE ISSUES HAVE BEEN RECOGNIZED BY BOTH THE FIX NYC  ADVISORY  PANEL
 AND THE METROPOLITAN TRANSPORTATION SUSTAINABILITY ADVISORY WORKGROUP AS
 SIGNIFICANT IMPEDIMENTS TO EVERYDAY NEW YORKERS.

 S. 1509--C                         245                        A. 2009--C
 
   IN ORDER TO ENSURE A SAFE AND EFFICIENT MASS TRANSIT SYSTEM WITHIN THE
 CITY  OF  NEW  YORK  AND  TO PROTECT THE PUBLIC HEALTH AND SAFETY OF NEW
 YORK'S RESIDENTS, A PROGRAM TO ESTABLISH TOLLS FOR VEHICLES ENTERING  OR
 REMAINING  IN THE MOST CONGESTED AREA OF THE STATE IS FOUND TO BE NECES-
 SARY AND TO BE A MATTER OF SUBSTANTIAL STATE CONCERN.
   §  1702.  SHORT  TITLE. THIS ACT SHALL BE KNOWN AS AND MAY BE CITED AS
 "THE TRAFFIC MOBILITY ACT".
   § 1703. DEFINITIONS. FOR THE PURPOSES  OF  THIS  ARTICLE,  UNLESS  THE
 CONTEXT OTHERWISE REQUIRES:
   1. "CITY" MEANS THE CITY OF NEW YORK.
   2.  "CENTRAL  BUSINESS  DISTRICT  TOLL" MEANS A TOLL CHARGED FOR ENTRY
 INTO OR REMAINING IN THE  CENTRAL  BUSINESS  DISTRICT  AS  DESCRIBED  IN
 SECTION SEVENTEEN HUNDRED FOUR OF THIS ARTICLE.
   3.  "CENTRAL  BUSINESS DISTRICT TOLLING PROGRAM" MEANS THE PROGRAM FOR
 CHARGING TOLLS FOR VEHICLES THAT ENTER OR REMAIN IN THE CENTRAL BUSINESS
 DISTRICT AND INCLUDES THE CENTRAL BUSINESS DISTRICT TOLLING  INFRASTRUC-
 TURE,  THE  CENTRAL  BUSINESS DISTRICT TOLLING COLLECTION SYSTEM AND THE
 CENTRAL BUSINESS DISTRICT TOLLING CUSTOMER SERVICE CENTER.
   4. "CENTRAL BUSINESS DISTRICT" MEANS THE  AREA  DESCRIBED  IN  SECTION
 SEVENTEEN  HUNDRED FOUR OF THIS ARTICLE FOR WHICH TOLLS SHALL BE CHARGED
 FOR A VEHICLE'S ENTRY INTO OR REMAINING IN SUCH DISTRICT.
   5.  "CENTRAL  BUSINESS  DISTRICT  TOLLING  INFRASTRUCTURE"  MEANS  THE
 DEVICES  AND  STRUCTURES  INCLUDING  BUT  NOT LIMITED TO GANTRIES, CLEAR
 SIGNAGE DELINEATING ENTRY INTO THE CENTRAL BUSINESS  DISTRICT  AND  TOLL
 AMOUNTS,  AND  POWER  AND COMMUNICATION LINES THAT THE TRIBOROUGH BRIDGE
 AND TUNNEL AUTHORITY WILL PLAN, DESIGN, CONSTRUCT, AND USE  AS  PART  OF
 THE  CENTRAL  BUSINESS  DISTRICT  TOLLING PROGRAM.   SUCH INFRASTRUCTURE
 SHALL BE PLANNED, DESIGNED, INSTALLED AND CONSTRUCTED  PURSUANT  TO  THE
 MEMORANDUM  OF  UNDERSTANDING  EXECUTED PURSUANT TO SUBDIVISION TWO-A OF
 SECTION SEVENTEEN HUNDRED FOUR OF THIS ARTICLE.
   6. "CENTRAL BUSINESS DISTRICT TOLLING  COLLECTION  SYSTEM"  MEANS  THE
 ELECTRONIC  SYSTEM OF COLLECTING TOLLS OR OTHER CHARGES USING ELECTRONIC
 DATA AND/OR IMAGES THAT THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY  WILL
 PLAN, DESIGN, INSTALL AND CONSTRUCT PURSUANT TO THE MEMORANDUM OF UNDER-
 STANDING  EXECUTED  PURSUANT  TO  SUBDIVISION TWO-A OF SECTION SEVENTEEN
 HUNDRED FOUR OF THIS ARTICLE, AND THAT SUCH AUTHORITY SHALL  OPERATE  AS
 PART OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM.
   7.  "CENTRAL  BUSINESS DISTRICT TOLLING CUSTOMER SERVICE CENTER" MEANS
 THE CUSTOMER CONTACT AND BACK-OFFICE SYSTEM AND OPERATION  SERVICES  FOR
 THE  COLLECTION  OF  CENTRAL  BUSINESS DISTRICT TOLLS AND ENFORCEMENT OF
 CENTRAL BUSINESS DISTRICT TOLL VIOLATIONS THAT THE TRIBOROUGH BRIDGE AND
 TUNNEL AUTHORITY WILL PLAN, DESIGN, IMPLEMENT AND OPERATE AS PART OF THE
 CENTRAL BUSINESS DISTRICT TOLLING PROGRAM.
   8. "OPERATION DATE" MEANS THE DATE DETERMINED BY THE TRIBOROUGH BRIDGE
 AND TUNNEL AUTHORITY, WHICH SHALL NOT BE EARLIER THAN  DECEMBER  THIRTY-
 FIRST,  TWO  THOUSAND  TWENTY,  FOR  THE  BEGINNING OF THE OPERATION AND
 ENFORCEMENT OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM.  THE OPER-
 ATION AND ENFORCEMENT DATE SHALL COMMENCE ONLY AFTER AN INITIAL  PROGRAM
 TESTING PERIOD OF THIRTY DAYS WHERE NO COLLECTION OF ANY TOLLS, FEES, OR
 OTHER CHARGES SHALL BE AUTHORIZED. AS OF THE COMMENCEMENT DATE OF OPERA-
 TION  AND  ENFORCEMENT, THERE SHALL BE A PERIOD OF SIXTY DAYS WHERE ONLY
 THE ESTABLISHED TOLLS MAY BE COLLECTED WITHOUT THE COLLECTION  OF  OTHER
 FEES OR CHARGES OR FINES.
   9.  "TRIBOROUGH  BRIDGE  AND  TUNNEL  AUTHORITY" MEANS THE CORPORATION
 ORGANIZED PURSUANT TO SECTION  FIVE  HUNDRED  FIFTY-TWO  OF  THE  PUBLIC
 AUTHORITIES  LAW AS CONSOLIDATED PURSUANT TO SECTION FIVE HUNDRED FIFTY-

 S. 1509--C                         246                        A. 2009--C
 
 TWO-A OF THE PUBLIC AUTHORITIES LAW  OR  ANY  SUCCESSOR  CORPORATION  OR
 CORPORATION INTO WHICH IT MAY BE CONSOLIDATED.
   § 1704. ESTABLISHMENT OF CENTRAL BUSINESS DISTRICT TOLLING PROGRAM. 1.
 THE  TRIBOROUGH  BRIDGE AND TUNNEL AUTHORITY SHALL ESTABLISH THE CENTRAL
 BUSINESS DISTRICT TOLLING PROGRAM.
   2. THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM WILL OPERATE  IN  THE
 CENTRAL  BUSINESS  DISTRICT. THE CENTRAL BUSINESS DISTRICT SHALL INCLUDE
 ANY ROADWAYS, BRIDGES, TUNNELS, APPROACHES OR  RAMPS  THAT  ARE  LOCATED
 WITHIN,  OR  ENTER INTO, THE GEOGRAPHIC AREA IN THE BOROUGH OF MANHATTAN
 SOUTH OF AND INCLUSIVE OF SIXTIETH STREET TO THE EXTENT PRACTICABLE  BUT
 SHALL  NOT  INCLUDE THE FDR DRIVE, AND NEW YORK STATE ROUTE 9A OTHERWISE
 KNOWN AS THE "WEST SIDE HIGHWAY" INCLUDING THE  BATTERY  PARK  UNDERPASS
 AND  ANY  SURFACE ROADWAY PORTION OF THE HUGH L. CAREY TUNNEL CONNECTING
 TO WEST ST. THE BOUNDARIES OF THE CENTRAL BUSINESS DISTRICT SHALL NOT BE
 MODIFIED, EXPANDED, OR REDUCED AND SHALL INCORPORATE THE OUTER BOUNDS OF
 THE AFOREMENTIONED DISTRICT TO THE EXTENT PRACTICABLE.
   2-A. THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY  SHALL  ENTER  INTO  A
 MEMORANDUM  OF  UNDERSTANDING WITH THE CITY DEPARTMENT OF TRANSPORTATION
 FOR  PURPOSES  OF  COORDINATING  THE  PLANNING,  DESIGN,   INSTALLATION,
 CONSTRUCTION  AND  MAINTENANCE  OF THE CENTRAL BUSINESS DISTRICT TOLLING
 INFRASTRUCTURE INCLUDING REQUIRED SIGNAGE. THE MEMORANDUM SHALL  ADDRESS
 THE  USE  OF  EXISTING  SYSTEMS,  DEVICES AND OTHER FACILITIES OWNED AND
 OPERATED BY THE CITY FOR THE PURPOSES OF  A  CENTRAL  BUSINESS  DISTRICT
 TOLLING PROGRAM, AS WELL AS REIMBURSABLE COSTS ASSOCIATED WITH THE PLAN-
 NING,   DESIGN,  INSTALLATION,  CONSTRUCTION  AND  MAINTENANCE  OF  SUCH
 PROGRAM.   SUCH MEMORANDUM OF UNDERSTANDING SHALL  BE  ENTERED  INTO  NO
 LATER THAN SIXTY DAYS FROM THE EFFECTIVE DATE OF THIS ARTICLE.
   3.  (A) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE TRIBOROUGH BRIDGE
 AND TUNNEL  AUTHORITY,  PURSUANT  TO  THE  MEMORANDUM  OF  UNDERSTANDING
 EXECUTED  PURSUANT  TO  SUBDIVISION  TWO-A OF THIS SECTION WITH THE CITY
 DEPARTMENT OF TRANSPORTATION SHALL PLAN, DESIGN, INSTALL, CONSTRUCT, AND
 MAINTAIN THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE. THE  CITY
 OF  NEW  YORK SHALL COOPERATE AND CONSULT WITH THE TRIBOROUGH BRIDGE AND
 TUNNEL AUTHORITY TO FACILITATE THE PLANNING, DESIGN, CONSTRUCTION, TIME-
 LY IMPLEMENTATION, AND MAINTENANCE  OF  THE  CENTRAL  BUSINESS  DISTRICT
 TOLLING  INFRASTRUCTURE  AND  SHALL NOT UNDULY HINDER OR DELAY THE PLAN-
 NING, DESIGNING, INSTALLATION, OPERATION, CONSTRUCTION, TIMELY IMPLEMEN-
 TATION, OR MAINTENANCE OF THE SAME. NOTWITHSTANDING ANY PROVISION OF LAW
 TO THE CONTRARY, THE CITY OF NEW YORK SHALL, PURSUANT TO THE  MEMORANDUM
 OF  UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION
 WITH THE TRIBOROUGH  BRIDGE  AND  TUNNEL  AUTHORITY,  BE  AUTHORIZED  TO
 PROVIDE  FOR  THE  USE OF EXISTING SYSTEMS, DEVICES AND OTHER FACILITIES
 OWNED AND OPERATED BY THE CITY, INCLUDING, BUT NOT  LIMITED  TO  SYSTEMS
 AND  DEVICES  INSTALLED  PURSUANT  TO  SECTIONS ONE THOUSAND ONE HUNDRED
 ELEVEN-A, ONE THOUSAND  ONE  HUNDRED  ELEVEN-C,  AND  ONE  THOUSAND  ONE
 HUNDRED EIGHTY-B OF THIS CHAPTER TO FACILITATE THE TRIBOROUGH BRIDGE AND
 TUNNEL  AUTHORITY'S  CENTRAL BUSINESS DISTRICT TOLLING PROGRAM AND SHALL
 WORK WITH THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY TO  FACILITATE  THE
 SAME.
   (B)  THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL, PURSUANT TO THE
 MEMORANDUM OF UNDERSTANDING EXECUTED PURSUANT TO  SUBDIVISION  TWO-A  OF
 THIS  SECTION  WITH THE CITY DEPARTMENT OF TRANSPORTATION, PLAN, DESIGN,
 INSTALL, CONSTRUCT,  AND  MAINTAIN  A  CENTRAL  BUSINESS  DISTRICT  TOLL
 COLLECTION  SYSTEM  AND  IMPLEMENT  AND  OPERATE THE SAME TO COLLECT THE
 CENTRAL BUSINESS DISTRICT TOLL.

 S. 1509--C                         247                        A. 2009--C
 
   (C) THE TRIBOROUGH BRIDGE AND TUNNEL  AUTHORITY  SHALL  PLAN,  DESIGN,
 IMPLEMENT  AND OPERATE A CENTRAL BUSINESS DISTRICT TOLL CUSTOMER SERVICE
 CENTER.
   (D)  THE  CENTRAL  BUSINESS DISTRICT TOLLING PROGRAM SHALL BE PLANNED,
 DESIGNED, IMPLEMENTED AND OPERATED  TO  FACILITATE  PAYMENT  OF  CENTRAL
 BUSINESS  DISTRICT  TOLLS  BY  CREDIT  OR DEBIT CARD, CHECK OR AUTOMATED
 CLEARING HOUSE PAYMENT, BY TELEPHONE OR OVER THE INTERNET OR  ANY  OTHER
 METHOD  OF  PAYMENT  THAT THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY MAY
 IMPLEMENT.
   (E) ALL PROCUREMENTS OF GOODS, SERVICES OR CONSTRUCTION OF ANY KIND BY
 THE TRIBOROUGH BRIDGE AND TUNNEL  AUTHORITY  FOR  THE  CENTRAL  BUSINESS
 DISTRICT  TOLLING PROGRAM SHALL BE DEEMED TO BE SUBJECT ONLY TO THE SAME
 REQUIREMENTS THAT OTHERWISE APPLY  TO  PROCUREMENTS  BY  THE  TRIBOROUGH
 BRIDGE AND TUNNEL AUTHORITY.
   (F) SIGNAGE SHALL BE CLEARLY DELINEATED TO PROVIDE NOTICE AT A REASON-
 ABLE  DISTANCE  PRIOR  TO,  AND  UPON  ENTRY  INTO, THE CENTRAL BUSINESS
 DISTRICT AND UPON EXIT FROM THE CENTRAL BUSINESS DISTRICT. SIGNAGE PRIOR
 TO ENTRY MUST INCLUDE THE TOLL  RATES  TO  BE  CHARGED.    ADDITIONALLY,
 SIGNAGE  SHALL  BE  PROVIDED,  WHERE  PRACTICABLE,  TO  PROVIDE  DRIVERS
 ADEQUATE NOTICE TO AVOID  ENTRY  INTO  THE  CENTRAL  BUSINESS  DISTRICT.
 DESIGN,  PLACEMENT  AND INSTALLATION OF SIGNAGE BY THE TRIBOROUGH BRIDGE
 AND TUNNEL AUTHORITY SHALL BE PERFORMED PURSUANT TO  THE  MEMORANDUM  OF
 UNDERSTANDING  EXECUTED  PURSUANT  TO  SUBDIVISION TWO-A OF THIS SECTION
 WITH THE CITY DEPARTMENT OF TRANSPORTATION.
   4. THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE,  THE  CENTRAL
 BUSINESS  DISTRICT  TOLL  COLLECTION  SYSTEM  AND  THE  CENTRAL BUSINESS
 DISTRICT TOLLING CUSTOMER SERVICE CENTER SHALL BE COMPLETED BY THE OPER-
 ATION DATE.
   5. RESPONSIBILITY FOR MAINTENANCE OF  THE  CENTRAL  BUSINESS  DISTRICT
 TOLLING  INFRASTRUCTURE  AFTER  THE OPERATION DATE SHALL BE PERFORMED BY
 THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY PURSUANT TO THE MEMORANDUM OF
 UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION  TWO-A  OF  THIS  SECTION
 WITH THE CITY DEPARTMENT OF TRANSPORTATION.
   6. THE PLANNING, DESIGNING, CONSTRUCTING, INSTALLING OR MAINTAINING OF
 THE  CENTRAL BUSINESS DISTRICT TOLLING PROGRAM AND THE PLANNING, DESIGN-
 ING, INSTALLING, CONSTRUCTING, OPERATING OR MAINTAINING OF  THE  CENTRAL
 BUSINESS  DISTRICT  TOLL  COLLECTION SYSTEM BY THE TRIBOROUGH BRIDGE AND
 TUNNEL AUTHORITY  INCLUDING  THE  ESTABLISHMENT  BY  SUCH  AUTHORITY  OF
 CENTRAL  BUSINESS  DISTRICT TOLLS, AND ANY OTHER FEES OR RENTALS FOR THE
 USE OF ITS PROJECTS AND ANY CHANGES THEREAFTER SHALL NOT BE  SUBJECT  TO
 THE  PROVISIONS  OF ARTICLE EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW,
 THE PROVISIONS OF CHAPTER SIX OF ARTICLE FORTY-THREE OR CHAPTER FIVE  OF
 TITLE  SIXTY-TWO OF THE RULES OF THE CITY OF NEW YORK, OR THE PROVISIONS
 OF SECTION ONE HUNDRED NINETY-SEVEN-C OF  THE  NEW  YORK  CITY  CHARTER,
 RELATING  TO  A UNIFORM LAND USE REVIEW PROCEDURE, NOR THE PROVISIONS OF
 ANY OTHER LOCAL LAW OF THE CITY OF NEW YORK OF LIKE  OR  SIMILAR  EFFECT
 INCLUDING APPROVALS OR CHARGES ASSOCIATED WITH THE USE OF PROPERTY OWNED
 AND MAINTAINED BY THE CITY OF NEW YORK NECESSARY FOR THE INSTALLATION OF
 CENTRAL  BUSINESS DISTRICT TOLLING INFRASTRUCTURE NOR SHALL THE DETERMI-
 NATION OF THE CENTRAL BUSINESS DISTRICT TOLL AMOUNTS BY  THE  TRIBOROUGH
 BRIDGE  AND  TUNNEL AUTHORITY BOARD BE SUBJECT TO ANY SUCH PROVISIONS OF
 LAW. THE PLANNING, DESIGNING, INSTALLING, CONSTRUCTING OR MAINTAINING OF
 THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM BY THE  TRIBOROUGH  BRIDGE
 AND  TUNNEL  AUTHORITY  SHALL BE PERFORMED PURSUANT TO THE MEMORANDUM OF
 UNDERSTANDING EXECUTED PURSUANT TO SUBDIVISION TWO-A OF THIS SECTION.

 S. 1509--C                         248                        A. 2009--C
 
   § 1704-A. CENTRAL BUSINESS DISTRICT TOLL. 1. CONSISTENT WITH THE GOALS
 OF REDUCING TRAFFIC CONGESTION WITHIN THE CENTRAL BUSINESS DISTRICT  AND
 FUNDING  CAPITAL  PROJECTS  THE  TRIBOROUGH  BRIDGE AND TUNNEL AUTHORITY
 SHALL HAVE THE POWER, SUBJECT TO AGREEMENTS WITH  ITS  BONDHOLDERS,  AND
 APPLICABLE  FEDERAL  LAW TO ESTABLISH AND CHARGE VARIABLE TOLLS AND FEES
 FOR VEHICLES ENTERING OR REMAINING IN THE CENTRAL BUSINESS  DISTRICT  AT
 ANY  TIME AND SHALL HAVE THE POWER, SUBJECT TO AGREEMENTS WITH BONDHOLD-
 ERS, AND APPLICABLE FEDERAL LAW TO MAKE RULES AND  REGULATIONS  FOR  THE
 ESTABLISHMENT  AND  COLLECTION OF CENTRAL BUSINESS DISTRICT TOLLS, FEES,
 AND OTHER CHARGES. FOR  PURPOSES  OF  ESTABLISHING  A  CENTRAL  BUSINESS
 DISTRICT TOLL OR TOLLS THE BOARD SHALL, AT MINIMUM, ENSURE ANNUAL REVEN-
 UES  AND  FEES  COLLECTED UNDER SUCH PROGRAM, LESS COSTS OF OPERATION OF
 THE SAME, PROVIDE FOR SUFFICIENT  REVENUES  INTO  THE  CENTRAL  BUSINESS
 DISTRICT  TOLLING  CAPITAL LOCKBOX FUND, ESTABLISHED PURSUANT TO SECTION
 FIVE HUNDRED FIFTY-THREE-J OF THE PUBLIC AUTHORITIES  LAW  NECESSARY  TO
 FUND  FIFTEEN  BILLION DOLLARS FOR CAPITAL PROJECTS FOR THE 2020 TO 2024
 MTA CAPITAL PROGRAM, AND ANY ADDITIONAL REVENUES ABOVE THAT AMOUNT TO BE
 AVAILABLE FOR ANY SUCCESSOR PROGRAMS.   ADDITIONALLY,  NO  TOLL  MAY  BE
 ESTABLISHED  AND  CHARGED  ON  PASSENGER VEHICLES REGISTERED PURSUANT TO
 SUBDIVISION SIX OF SECTION FOUR HUNDRED ONE OF THIS  CHAPTER  MORE  THAN
 ONCE PER DAY FOR PURPOSES OF ENTERING THE CENTRAL BUSINESS DISTRICT.
   2.  NO  QUALIFYING AUTHORIZED EMERGENCY VEHICLE AS DEFINED PURSUANT TO
 SECTION ONE HUNDRED ONE OF THIS CHAPTER OR A QUALIFYING  VEHICLE  TRANS-
 PORTING  A  PERSON WITH DISABILITIES SHALL BE CHARGED A CENTRAL BUSINESS
 DISTRICT TOLL IF IT ENTERS OR REMAINS IN THE CENTRAL BUSINESS  DISTRICT.
 APPLICATION  FOR  SUCH  TOLL  EXEMPTION  SHALL BE MADE IN SUCH MANNER AS
 PRESCRIBED BY THE TRIBOROUGH  BRIDGE  AND  TUNNEL  AUTHORITY  AND  SHALL
 CONTAIN SUCH INFORMATION AS THE AUTHORITY MAY REASONABLY REQUIRE.
   3.  (A)  THE  TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL IMPLEMENT A
 PLAN FOR CREDITS, DISCOUNTS AND/OR EXEMPTIONS FOR TOLLS PAID ON  BRIDGES
 AND  CROSSINGS  INFORMED  BY THE RECOMMENDATIONS OF THE TRAFFIC MOBILITY
 REVIEW BOARD.
   (B) THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL BE AUTHORIZED  TO
 PROVIDE  ADDITIONAL  CREDITS,  DISCOUNTS  AND EXEMPTIONS INFORMED BY THE
 RECOMMENDATIONS OF THE TRAFFIC MOBILITY REVIEW BOARD AND A TRAFFIC STUDY
 THAT CONSIDERS IMPACT.
   4. THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SHALL IMPLEMENT  A  PLAN
 TO  ADDRESS  CREDITS, DISCOUNTS, AND/OR EXEMPTIONS FOR FOR-HIRE VEHICLES
 AS DEFINED BY, AND SUBJECT TO A SURCHARGE IMPOSED  BY,  ARTICLE  TWENTY-
 NINE-C  OF  THE  TAX LAW FOR A FOR-HIRE TRANSPORTATION TRIP, INFORMED BY
 THE RECOMMENDATION OF THE TRAFFIC MOBILITY REVIEW BOARD.
   § 1705. DISPOSITION OF REVENUE AND PENALTIES.  THE  TRIBOROUGH  BRIDGE
 AND  TUNNEL  AUTHORITY  SHALL  ESTABLISH  AND  COLLECT  CENTRAL BUSINESS
 DISTRICT TOLLS, FEES  AND  OTHER  CHARGES  AS  PROVIDED  IN  SUBDIVISION
 TWELVE-A  OF  SECTION FIVE HUNDRED FIFTY-THREE OF THE PUBLIC AUTHORITIES
 LAW.
   § 1706. REPORTING. BEGINNING ONE YEAR AFTER  THE  OPERATION  DATE  AND
 EVERY  TWO YEARS THEREAFTER, THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY,
 IN CONSULTATION WITH THE CITY DEPARTMENT OF TRANSPORTATION SHALL  REPORT
 ON  THE EFFECT OF THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM ON TRAF-
 FIC CONGESTION IN AND AROUND THE CENTRAL BUSINESS DISTRICT AND  ON  MASS
 TRANSIT  USE  AND  TAXI  AND FOR-HIRE VEHICLE USE INCLUDING THE VEHICLE-
 MILES TRAVELED FOR EACH TRIP WITHIN THE CENTRAL  BUSINESS  DISTRICT  FOR
 TAXIS AND FOR-HIRE VEHICLES; THE CURRENT AND HISTORIC VOLUME AND TYPE OF
 VEHICLES  INCLUDING,  BUT NOT LIMITED TO, COMMERCIAL TRUCKS, TRANSPORTA-
 TION NETWORK COMPANIES, TAXIS, PRIVATE CARS, AND  TOUR  BUSES,  ENTERING

 S. 1509--C                         249                        A. 2009--C

 THE CENTRAL BUSINESS DISTRICT; ENVIRONMENTAL IMPROVEMENTS, INCLUDING BUT
 NOT  LIMITED  TO,  AIR  QUALITY,  AND EMISSIONS TRENDS IN AND AROUND THE
 CENTRAL BUSINESS DISTRICT; CONGESTION REDUCTION  MEASURES;  AND  TRANSIT
 RIDERSHIP  AND  AVERAGE BUS SPEEDS WITHIN THE CENTRAL BUSINESS DISTRICT,
 AND ON ALL RECEIPTS AND EXPENDITURES RELATING TO  THE  CENTRAL  BUSINESS
 DISTRICT  TOLLING  PROGRAM. THE DEPARTMENT OF TRANSPORTATION OF THE CITY
 OF NEW YORK SHALL BE REQUIRED TO ASSIST IN GATHERING  AND  PROVIDING  TO
 THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY TRAFFIC IMPACT DATA AND OTHER
 RELATED  DATA  AS DIRECTED BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY
 FOR PURPOSES OF COMPILING SUCH  REPORT.  THE  REPORT  SHALL  BE  READILY
 AVAILABLE  TO THE PUBLIC, AND SHALL BE POSTED ON THE AUTHORITY'S WEBSITE
 AND BE SUBMITTED TO THE GOVERNOR, THE DIRECTOR OF THE BUDGET, THE TEMPO-
 RARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MAYOR AND
 COUNCIL SPEAKER OF THE CITY OF NEW YORK, THE METROPOLITAN TRANSPORTATION
 AUTHORITY BOARD AND THE METROPOLITAN  TRANSPORTATION  AUTHORITY  CAPITAL
 PROGRAM REVIEW BOARD.
   §  2.  Subdivision 4 of section 1630 of the vehicle and traffic law is
 amended to read as follows:
   4. Charging of tolls, taxes, fees, licenses or permits for the use  of
 the  highway  or  any of its parts OR ENTRY INTO OR REMAINING WITHIN THE
 CENTRAL BUSINESS DISTRICT ESTABLISHED BY ARTICLE  FORTY-FOUR-C  OF  THIS
 CHAPTER, where the imposition thereof is authorized by law.
   §  3.  Subdivision  9  of section 553 of the public authorities law is
 amended by adding a new paragraph (s) to read as follows:
   (S) THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM TO THE EXTENT SPECI-
 FIED IN ARTICLE FORTY-FOUR-C OF THE VEHICLE AND TRAFFIC LAW AND IN  THIS
 TITLE.
   §  4. Section 553 of the public authorities law is amended by adding a
 new subdivision 12-a to read as follows:
   12-A. TO ESTABLISH AND CHARGE VARIABLE TOLLS, FEES AND  OTHER  CHARGES
 FOR  VEHICLES ENTERING OR REMAINING WITHIN THE CENTRAL BUSINESS DISTRICT
 AND TO MAKE RULES AND REGULATIONS FOR THE COLLECTION OF SUCH TOLLS, FEES
 AND OTHER CHARGES, SUBJECT TO AND IN ACCORDANCE WITH SUCH AGREEMENT WITH
 BONDHOLDERS AND APPLICABLE FEDERAL LAW AS MAY  BE  MADE  AS  HEREINAFTER
 PROVIDED.  SUBJECT TO AGREEMENTS WITH BONDHOLDERS AND APPLICABLE FEDERAL
 LAW, ALL TOLLS, FEES AND OTHER REVENUES DERIVED FROM THE  CENTRAL  BUSI-
 NESS DISTRICT TOLLING PROGRAM SHALL BE APPLIED TO THE PAYMENT OF OPERAT-
 ING, ADMINISTRATION, AND OTHER NECESSARY EXPENSES OF THE AUTHORITY PROP-
 ERLY  ALLOCABLE  TO  SUCH  PROGRAM,  INCLUDING THE CAPITAL COSTS OF SUCH
 PROGRAM, AND TO THE PAYMENT OF INTEREST OR PRINCIPAL OF BONDS, NOTES  OR
 OTHER  OBLIGATIONS  OF  THE AUTHORITY OR THE METROPOLITAN TRANSPORTATION
 AUTHORITY ISSUED FOR  TRANSIT  AND  COMMUTER  PROJECTS  AS  PROVIDED  IN
 SECTION  FIVE  HUNDRED  FIFTY-THREE-J  OF  THIS  TITLE, AND SHALL NOT BE
 SUBJECT TO DISTRIBUTION UNDER SECTION FIVE HUNDRED SIXTY-NINE-C OF  THIS
 TITLE  OR  SECTION  TWELVE  HUNDRED  NINETEEN-A  OF  THIS  CHAPTER.  THE
 PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED FOUR OF  THIS  CHAPTER  SHALL
 NOT  BE  APPLICABLE  TO  THE TOLLS AND FEES ESTABLISHED BY THE AUTHORITY
 PURSUANT TO THIS SUBDIVISION. ANY SUCH FARES, TOLLS, AND  OTHER  CHARGES
 SHALL  BE  ESTABLISHED AND CHANGED ONLY IF APPROVED BY RESOLUTION OF THE
 AUTHORITY ADOPTED BY NOT LESS THAN A MAJORITY VOTE OF THE  WHOLE  NUMBER
 OF MEMBERS OF THE AUTHORITY THEN IN OFFICE, WITH THE CHAIRMAN HAVING ONE
 ADDITIONAL  VOTE  IN  THE  EVENT  OF A TIE VOTE, AND ONLY AFTER A PUBLIC
 HEARING.
   § 5. The public authorities law is amended by  adding  a  new  section
 553-j to read as follows:

 S. 1509--C                         250                        A. 2009--C
 
   §  553-J.    ADDITIONAL  POWERS  AND PROVISIONS IN RELATION TO CENTRAL
 BUSINESS DISTRICT TOLLING PROGRAM. 1. THE AUTHORITY  SHALL  ESTABLISH  A
 FUND  TO BE KNOWN AS THE CENTRAL BUSINESS DISTRICT TOLLING CAPITAL LOCK-
 BOX FUND WHICH SHALL BE KEPT SEPARATE FROM AND SHALL NOT  BE  COMMINGLED
 WITH  ANY  OTHER  MONIES OF THE AUTHORITY. THE FUND SHALL CONSIST OF ALL
 MONIES RECEIVED BY THE AUTHORITY PURSUANT TO ARTICLE FORTY-FOUR-C OF THE
 VEHICLE AND TRAFFIC LAW,  SUBDIVISION TWELVE-A OF SECTION  FIVE  HUNDRED
 FIFTY-THREE  OF THIS TITLE, AND REVENUES OF THE REAL ESTATE TRANSFER TAX
 DEPOSITED PURSUANT TO SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED  TWEN-
 TY-ONE  OF  THE  TAX  LAW,  AND SALES TAX PURSUANT TO SUBDIVISION (C) OF
 SECTION ELEVEN HUNDRED FORTY-EIGHT OF THE TAX LAW, SUBPARAGRAPH  (B)  OF
 PARAGRAPH FIVE OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-ONE OF
 THE  TAX  LAW, AND FUNDS APPROPRIATED FROM THE CENTRAL BUSINESS DISTRICT
 TRUST FUND ESTABLISHED PURSUANT TO SECTION NINTY-NINE-FF  OF  THE  STATE
 FINANCE LAW.
   2.  MONIES  IN  THE  FUND SHALL BE APPLIED, SUBJECT TO AGREEMENTS WITH
 BONDHOLDERS AND APPLICABLE FEDERAL LAW, TO  THE  PAYMENT  OF  OPERATING,
 ADMINISTRATION, AND OTHER NECESSARY EXPENSES OF THE AUTHORITY, OR TO THE
 CITY  OF  NEW  YORK  SUBJECT TO THE MEMORANDUM OF UNDERSTANDING EXECUTED
 PURSUANT TO SUBDIVISION TWO-A OF SECTION SEVENTEEN HUNDRED FOUR  OF  THE
 VEHICLE  AND  TRAFFIC  LAW PROPERLY ALLOCABLE TO SUCH PROGRAM, INCLUDING
 THE PLANNING, DESIGNING, CONSTRUCTING, INSTALLING OR MAINTAINING OF  THE
 CENTRAL  BUSINESS  DISTRICT  TOLLING PROGRAM, INCLUDING, WITHOUT LIMITA-
 TION, THE CENTRAL BUSINESS DISTRICT TOLLING INFRASTRUCTURE, THE  CENTRAL
 BUSINESS  DISTRICT  TOLLING  COLLECTION  SYSTEM AND THE CENTRAL BUSINESS
 DISTRICT TOLLING CUSTOMER SERVICE CENTER, AND THE COSTS OF ANY METROPOL-
 ITAN TRANSPORTATION AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE  2020
 TO  2024  MTA  CAPITAL  PROGRAM OR ANY SUCCESSOR PROGRAMS. MONIES IN THE
 FUND MAY BE: (A) PLEDGED BY THE AUTHORITY TO SECURE AND  BE  APPLIED  TO
 THE PAYMENT OF THE BONDS, NOTES OR OTHER OBLIGATIONS OF THE AUTHORITY TO
 FINANCE  THE  COSTS  OF  THE  CENTRAL BUSINESS DISTRICT TOLLING PROGRAM,
 INCLUDING, WITHOUT LIMITATION, THE  CENTRAL  BUSINESS  DISTRICT  TOLLING
 INFRASTRUCTURE,  THE CENTRAL BUSINESS DISTRICT TOLLING COLLECTION SYSTEM
 AND THE CENTRAL BUSINESS DISTRICT TOLLING CUSTOMER SERVICE  CENTER,  AND
 THE  COSTS OF ANY METROPOLITAN TRANSPORTATION AUTHORITY CAPITAL PROJECTS
 INCLUDED WITHIN THE 2020 TO 2024 MTA CAPITAL PROGRAM  OR  ANY  SUCCESSOR
 PROGRAMS,  INCLUDING  DEBT  SERVICE,  RESERVE  REQUIREMENTS, IF ANY, THE
 PAYMENT OF AMOUNTS REQUIRED UNDER BOND AND NOTE FACILITIES OR AGREEMENTS
 RELATED THERETO, THE PAYMENT OF FEDERAL GOVERNMENT  LOANS,  SECURITY  OR
 CREDIT  ARRANGEMENTS OR OTHER AGREEMENTS RELATED THERETO; OR (B) USED BY
 THE AUTHORITY FOR THE PAYMENT OF SUCH CAPITAL COSTS OF THE CENTRAL BUSI-
 NESS DISTRICT TOLLING PROGRAM AND THE COSTS OF ANY  METROPOLITAN  TRANS-
 PORTATION  AUTHORITY  CAPITAL  PROJECTS INCLUDED WITHIN THE 2020 TO 2024
 MTA CAPITAL PROGRAM OR ANY SUCCESSOR PROGRAMS; OR (C) TRANSFERRED TO THE
 METROPOLITAN TRANSPORTATION AUTHORITY AND (1) PLEDGED BY  THE  METROPOL-
 ITAN TRANSPORTATION AUTHORITY TO SECURE AND BE APPLIED TO THE PAYMENT OF
 THE BONDS, NOTES OR OTHER OBLIGATIONS OF THE METROPOLITAN TRANSPORTATION
 AUTHORITY  TO  FINANCE  THE  COSTS  OF  ANY  METROPOLITAN TRANSPORTATION
 AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE 2020 TO 2024 MTA  CAPITAL
 PROGRAM  OR  ANY  SUCCESSOR  PROGRAMS,  INCLUDING  DEBT SERVICE, RESERVE
 REQUIREMENTS, IF ANY, THE PAYMENT OF AMOUNTS  REQUIRED  UNDER  BOND  AND
 NOTE  FACILITIES  OR  AGREEMENTS RELATED THERETO, THE PAYMENT OF FEDERAL
 GOVERNMENT LOANS, SECURITY OR CREDIT ARRANGEMENTS  OR  OTHER  AGREEMENTS
 RELATED THERETO, OR (2) USED BY THE METROPOLITAN TRANSPORTATION AUTHORI-
 TY  FOR  THE  PAYMENT  OF  THE  COSTS OF ANY METROPOLITAN TRANSPORTATION
 AUTHORITY CAPITAL PROJECTS INCLUDED WITHIN THE 2020 TO 2024 MTA  CAPITAL

 S. 1509--C                         251                        A. 2009--C
 
 PROGRAM  OR  ANY SUCCESSOR PROGRAMS. SUCH REVENUES SHALL ONLY SUPPLEMENT
 AND SHALL NOT SUPPLANT ANY FEDERAL, STATE, OR LOCAL  FUNDS  EXPENDED  BY
 THE  AUTHORITY  OR  THE  METROPOLITAN  TRANSPORTATION AUTHORITY, OR SUCH
 AUTHORITY'S  OR  METROPOLITAN  TRANSPORTATION  AUTHORITY'S AFFILIATES OR
 SUBSIDIARIES FOR SUCH RESPECTIVE  PURPOSES.  CENTRAL  BUSINESS  DISTRICT
 TOLL  REVENUES  MAY  BE USED AS REQUIRED TO OBTAIN, UTILIZE, OR MAINTAIN
 FEDERAL AUTHORIZATION TO COLLECT TOLLS ON FEDERAL AID HIGHWAYS.
   3. ANY MONIES DEPOSITED IN THE FUND SHALL BE HELD IN THE FUND FREE AND
 CLEAR OF ANY CLAIM BY ANY PERSON ARISING OUT OF OR  IN  CONNECTION  WITH
 ARTICLE  FORTY-FOUR-C  OF  THE  VEHICLE  AND TRAFFIC LAW AND SUBDIVISION
 TWELVE-A OF SECTION FIVE HUNDRED  FIFTY-THREE  OF  THIS  TITLE.  WITHOUT
 LIMITING  THE  GENERALITY  OF THE FOREGOING, NO PERSON PAYING ANY AMOUNT
 THAT IS DEPOSITED INTO THE FUND SHALL HAVE ANY RIGHT  OR  CLAIM  AGAINST
 THE AUTHORITY OR THE METROPOLITAN TRANSPORTATION AUTHORITY, ANY OF THEIR
 BONDHOLDERS,  ANY  OF THE AUTHORITY'S OR THE METROPOLITAN TRANSPORTATION
 AUTHORITY'S SUBSIDIARIES OR AFFILIATES TO ANY MONIES IN  OR  DISTRIBUTED
 FROM THE FUND OR IN RESPECT OF A REFUND, REBATE, CREDIT OR REIMBURSEMENT
 OF  MONIES  ARISING OUT OF OR IN CONNECTION WITH ARTICLE FORTY-FOUR-C OF
 THE VEHICLE AND TRAFFIC LAW AND SUBDIVISION  TWELVE-A  OF  SECTION  FIVE
 HUNDRED FIFTY-THREE OF THIS TITLE.
   3-A.  OF  THE  CAPITAL PROJECT COSTS PAID BY THIS FUND: EIGHTY PERCENT
 SHALL BE CAPITAL PROJECT COSTS OF THE NEW YORK  CITY  TRANSIT  AUTHORITY
 AND ITS SUBSIDIARY, STATEN ISLAND RAPID TRANSIT OPERATING AUTHORITY, AND
 MTA  BUS  WITH  PRIORITY  GIVEN TO THE SUBWAY SYSTEM, NEW SIGNALING, NEW
 SUBWAY CARS, TRACK AND CAR REPAIR, ACCESSIBILITY, BUSES AND  BUS  SYSTEM
 IMPROVEMENTS  AND  FURTHER INVESTMENTS IN EXPANDING TRANSIT AVAILABILITY
 TO AREAS IN THE OUTER BOROUGHS THAT HAVE LIMITED MASS  TRANSIT  OPTIONS;
 TEN PERCENT SHALL BE CAPITAL PROJECT COSTS OF THE LONG ISLAND RAIL ROAD,
 INCLUDING BUT NOT LIMITED TO, PARKING FACILITIES, ROLLING STOCK, CAPACI-
 TY  ENHANCEMENTS,  ACCESSIBILITY,  AND EXPANDING TRANSIT AVAILABILITY TO
 AREAS IN THE METROPOLITAN COMMUTER  TRANSPORTATION  DISTRICT  THAT  HAVE
 LIMITED  MASS  TRANSIT OPTIONS; AND TEN PERCENT SHALL BE CAPITAL PROJECT
 COSTS OF THE METRO-NORTH COMMUTER RAILROAD COMPANY,  INCLUDING  BUT  NOT
 LIMITED  TO,  PARKING  FACILITIES, ROLLING STOCK, CAPACITY ENHANCEMENTS,
 ACCESSIBILITY, AND EXPANDING TRANSIT AVAILABILITY TO AREAS IN THE METRO-
 POLITAN COMMUTER TRANSPORTATION DISTRICT THAT HAVE LIMITED MASS  TRANSIT
 OPTIONS.
   4.  THE  AUTHORITY  SHALL REPORT ANNUALLY ON ALL RECEIPTS AND EXPENDI-
 TURES OF THE FUND. THE REPORT SHALL DETAIL  OPERATING  EXPENSES  OF  THE
 CENTRAL  BUSINESS  DISTRICT  TOLLING  PROGRAM  AND ALL FUND EXPENDITURES
 INCLUDING CAPITAL PROJECTS. THE REPORT SHALL BE READILY AVAILABLE TO THE
 PUBLIC, AND SHALL BE POSTED ON THE AUTHORITY'S WEBSITE AND BE  SUBMITTED
 TO  THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF
 THE ASSEMBLY, THE MAYOR AND COUNCIL OF THE CITY OF NEW YORK, THE  METRO-
 POLITAN TRANSPORTATION AUTHORITY BOARD, AND THE METROPOLITAN TRANSPORTA-
 TION AUTHORITY CAPITAL PROGRAM REVIEW BOARD.
   5.  ANY  OPERATING FUNDING USED FOR THE PURPOSES OF A CENTRAL BUSINESS
 DISTRICT TOLLING PROGRAM FROM THIS FUND SHALL BE APPROVED, ANNUALLY,  IN
 A PLAN OF EXPENDITURES, BY THE DIRECTOR OF THE BUDGET.
   § 6. Intentionally omitted.
   § 7. Subdivision 2 of section 87 of the public officers law is amended
 by adding a new paragraph (p) to read as follows:
   (P)  ARE  DATA  OR  IMAGES  PRODUCED  BY AN ELECTRONIC TOLL COLLECTION
 SYSTEM UNDER AUTHORITY OF ARTICLE FORTY-FOUR-C OF THE VEHICLE AND  TRAF-
 FIC  LAW  AND  IN TITLE THREE OF ARTICLE THREE OF THE PUBLIC AUTHORITIES
 LAW.

 S. 1509--C                         252                        A. 2009--C
 
   § 8. The public authorities law is amended by  adding  a  new  section
 553-k to read as follows:
   §  553-K.  TRAFFIC  MOBILITY  REVIEW BOARD.   1. THE AUTHORITY'S BOARD
 SHALL ESTABLISH THE "TRAFFIC MOBILITY REVIEW" BOARD (BOARD), WHICH SHALL
 CONSIST OF A CHAIR AND FIVE MEMBERS, THAT SHALL BE MADE UP  OF  REGIONAL
 REPRESENTATION,  ONE  OF  WHOM  SHALL BE RECOMMENDED BY THE MAYOR OF THE
 CITY OF NEW YORK, ONE OF WHOM SHALL RESIDE IN THE  METRO  NORTH  REGION,
 AND  ONE  OF  WHOM  SHALL  RESIDE  IN  THE LONG ISLAND RAIL ROAD REGION.
 MEMBERS OF THE BOARD MUST HAVE EXPERIENCE IN AT LEAST ONE OF THE FOLLOW-
 ING AREAS:  PUBLIC FINANCE; TRANSPORTATION; MASS TRANSIT; OR MANAGEMENT.
 THE CHAIR AND THE MEMBERS OF THE BOARD SHALL BE APPOINTED BY THE AUTHOR-
 ITY.
   2. THE BOARD SHALL MAKE A RECOMMENDATION REGARDING THE  CENTRAL  BUSI-
 NESS  DISTRICT TOLL AMOUNTS TO BE ESTABLISHED PURSUANT TO ARTICLE FORTY-
 FOUR-C OF THE VEHICLE AND TRAFFIC LAW, WHICH SHALL INCLUDE  A  VARIABLE-
 PRICING  STRUCTURE,  NO  SOONER  THAN  NOVEMBER  FIFTEENTH, TWO THOUSAND
 TWENTY AND NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY,  OR
 NO  LATER  THAN  THIRTY  DAYS BEFORE A CENTRAL BUSINESS DISTRICT TOLLING
 PROGRAM IS INITIATED, WHICHEVER IS LATER. SUCH RECOMMENDATION  SHALL  BE
 SUBMITTED TO THE BOARD OF THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY FOR
 CONSIDERATION  BEFORE  THE  TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY BOARD
 MAY APPROVE CENTRAL BUSINESS DISTRICT TOLL AMOUNTS THAT  MAY  BE  ESTAB-
 LISHED AND ADOPTED.
   3.  FOR  PURPOSES  OF RECOMMENDING A CENTRAL BUSINESS DISTRICT TOLL OR
 TOLLS IN ADDITION TO THE GOAL OF REDUCING  TRAFFIC  WITHIN  THE  CENTRAL
 BUSINESS  DISTRICT,  THE  BOARD  SHALL,  AT  MINIMUM, ENSURE THAT ANNUAL
 REVENUES AND FEES COLLECTED UNDER  SUCH  PROGRAM,  LESS  COSTS  OF  SUCH
 PROGRAM, PROVIDE FOR REVENUES INTO THE CENTRAL BUSINESS DISTRICT TOLLING
 CAPITAL  LOCKBOX  FUND,  ESTABLISHED  PURSUANT  TO  SECTION FIVE HUNDRED
 FIFTY-THREE-J OF THIS CHAPTER, NECESSARY TO FUND FIFTEEN BILLION DOLLARS
 FOR CAPITAL PROJECTS FOR THE 2020 TO 2024 CAPITAL PROGRAM, AND ANY ADDI-
 TIONAL REVENUES ABOVE THAT AMOUNT TO  BE  AVAILABLE  FOR  ANY  SUCCESSOR
 PROGRAM.  THE  BOARD SHALL CONSIDER FOR PURPOSES OF ITS RECOMMENDATIONS,
 FACTORS INCLUDING BUT NOT LIMITED TO, TRAFFIC  PATTERNS,  TRAFFIC  MITI-
 GATION  MEASURES,  OPERATING  COSTS, PUBLIC IMPACT, PUBLIC SAFETY, HARD-
 SHIPS, VEHICLE TYPE, DISCOUNTS FOR MOTORCYCLES, PEAK AND OFF-PEAK  RATES
 AND  ENVIRONMENTAL IMPACTS, INCLUDING BUT NOT LIMITED TO AIR QUALITY AND
 EMISSIONS TRENDS.   THE  BOARD  SHALL  RECOMMEND  A  PLAN  FOR  CREDITS,
 DISCOUNTS,  AND/OR  EXEMPTIONS  FOR  TOLLS PAID ON BRIDGES AND CROSSINGS
 WHICH SHALL BE INFORMED BY A TRAFFIC STUDY ASSOCIATED WITH THE IMPACT OF
 ANY SUCH CREDITS, DISCOUNTS AND/OR EXEMPTIONS ON THE  RECOMMENDED  TOLL.
 THE  BOARD  SHALL  RECOMMEND  A  PLAN  FOR  CREDITS,  DISCOUNTS,  AND/OR
 EXEMPTIONS FOR FOR-HIRE VEHICLES DEFINED, AND  SUBJECT  TO  A  SURCHARGE
 IMPOSED  BY,  ARTICLE TWENTY-NINE-C OF THE TAX LAW FOR A FOR-HIRE TRANS-
 PORTATION TRIP BASED ON FACTORS INCLUDING, BUT NOT LIMITED  TO,  INITIAL
 MARKET ENTRY COSTS ASSOCIATED WITH LICENSING AND REGULATION, COMPARATIVE
 CONTRIBUTION TO CONGESTION IN THE CENTRAL BUSINESS DISTRICT, AND GENERAL
 INDUSTRY  IMPACT.    THE  BOARD  SHALL  PRODUCE  A  DETAILED REPORT THAT
 PROVIDES INFORMATION REGARDING  THE  BOARD'S  REVIEW  AND  ANALYSIS  FOR
 PURPOSES  OF ESTABLISHING ITS RECOMMENDATIONS, INCLUDING BUT NOT LIMITED
 TO, ALL OF THE CONSIDERATIONS REFERRED TO IN THIS SUBDIVISION. THE BOARD
 SHALL NOT RECOMMEND A TOLL THAT PROVIDES FOR CHARGING PASSENGER VEHICLES
 REGISTERED PURSUANT TO SUBDIVISION SIX OF SECTION FOUR  HUNDRED  ONE  OF
 THE VEHICLE AND TRAFFIC LAW MORE THAN ONCE PER DAY.
   4.  THE  AUTHORITY,  ITS SUBSIDIARIES, AFFILIATES, AND SUBSIDIARIES OF
 AFFILIATES, THE CITY OF NEW YORK, AND  ANY  STATE  AGENCY  OR  AUTHORITY

 S. 1509--C                         253                        A. 2009--C
 
 SHALL  PROVIDE  ANY  ASSISTANCE NECESSARY TO ASSIST IN THE COMPLETION OF
 THE BOARD'S WORK AND PROMPTLY RESPOND TO ANY REQUESTS FOR INFORMATION OR
 CONSULTATION CONSISTENT WITH THE PURPOSES OF THIS SECTION.
   5.  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY CAPITAL PLAN SHALL BE
 REVIEWED BY THE TRAFFIC MOBILITY REVIEW BOARD.
   6. MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION.
   § 9. The city of New York shall study the impact of  central  business
 district  tolling  on  parking  within  and  around the central business
 district.  Such study shall be completed eighteen months from  the  date
 of  the central business district tolling program going into effect, and
 shall be provided to the temporary president of the senate, the  speaker
 of the assembly and the Governor.
   §  10. The Triborough bridge and tunnel authority and the city depart-
 ment of transportation shall complete a traffic study that includes  the
 central  business  district  established pursuant to article 44-C of the
 vehicle and traffic law, and areas surrounding such district, that shall
 be provided to the traffic mobility review board for purposes of  allow-
 ing  such board to make recommendations consistent with section 553-k of
 the public authorities law.
   § 11. The Triborough bridge and tunnel authority  shall  engage  in  a
 public  information  campaign  a  minimum  of 60 days before the tolling
 program goes into effect to ensure commuters have appropriate notice and
 understanding of the operation and tolling process of the central  busi-
 ness district tolling program.
   § 12. Section 566-a of the public authorities law, as added by chapter
 874  of  the laws of 1939, subdivision 1 as amended by chapter 35 of the
 laws of 1979, is amended to read as follows:
   § 566-a. Tax contract by the state. 1. It is hereby found,  determined
 and  declared  that  the authority and the carrying out of its corporate
 purposes is in all respects for the benefit of the people of  the  state
 of  New  York, for the improvement of their health, welfare and prosper-
 ity, and, in the case of some of the said purposes, for the promotion of
 their traffic, and that said purposes are public purposes  and,  in  the
 case  of  those  purposes  which consist of vehicular bridges, vehicular
 tunnels and approaches thereto AND THE CENTRAL BUSINESS DISTRICT TOLLING
 PROGRAM, the project is an essential part of the public  highway  system
 and  the authority will be performing an essential governmental function
 in the exercise of the powers conferred by this title, and the state  of
 New  York  covenants with the purchasers and with all subsequent holders
 and transferees of bonds issued after January  first,  nineteen  hundred
 thirty-nine by the authority pursuant to this title, in consideration of
 the  acceptance  of  any  payment  for  the  bonds that the bonds of the
 authority issued  after  January  first,  nineteen  hundred  thirty-nine
 pursuant  to this title and the income therefrom, and all moneys, funds,
 tolls and other revenues pledged to pay or secure the  payment  of  such
 bonds,  shall at all times be free from taxation except for estate taxes
 and taxes on transfers by or in contemplation of death.
   2. Nothing herein shall be construed to repeal or  supersede  any  tax
 exemptions heretofore or hereafter granted by general or other laws.
   §  13. Severability clause. If any clause, sentence, paragraph, subdi-
 vision, section or part of this act shall be  adjudged  by  a  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of

 S. 1509--C                         254                        A. 2009--C
 
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provision had not been included herein.
   § 14. This act shall take effect immediately.
 
                                 SUBPART B
 
   Section  1.  The  public  authorities  law  is amended by adding a new
 section 1279-e to read as follows:
   § 1279-E. ASSIGNMENT, TRANSFER, SHARING OR CONSOLIDATING POWERS, FUNC-
 TIONS OR ACTIVITIES.  1. (A) NOTWITHSTANDING ANY PROVISION OF THIS TITLE
 OR ANY OTHER PROVISION OF LAW, GENERAL, SPECIAL OR LOCAL, THE  AUTHORITY
 SHALL  DEVELOP AND COMPLETE A PERSONNEL AND REORGANIZATION PLAN NO LATER
 THAN JUNE THIRTIETH, TWO THOUSAND NINETEEN WHICH SHALL, IN WHOLE  OR  IN
 PART,  ASSIGN,  TRANSFER,  SHARE,  OR CONSOLIDATE ANY ONE OR MORE OF ITS
 POWERS, DUTIES, FUNCTIONS OR ACTIVITIES OR ANY DEPARTMENT,  DIVISION  OR
 OFFICE  ESTABLISHED  THEREWITH,  OR ANY OF THOSE OF ITS SUBSIDIARIES, OR
 AFFILIATES OR THEIR SUBSIDIARIES, WITHIN OR BETWEEN ITSELF, ITS  SUBSID-
 IARIES  OR  AFFILIATES OR THEIR SUBSIDIARIES, INCLUDING, BUT NOT LIMITED
 TO THE NEW YORK CITY TRANSIT AUTHORITY, THE LONG ISLAND RAIL  ROAD,  THE
 METRO NORTH COMMUTER RAILROAD COMPANY, MTA CAPITAL CONSTRUCTION, MTA NEW
 YORK  CITY  BUS,  TRIBOROUGH  BRIDGE  AND  TUNNEL AUTHORITY, AND THE MTA
 STATEN ISLAND RAILWAY, IN A MANNER CONSISTENT  WITH  THE  PROVISIONS  OF
 THIS  SECTION.    SUCH  PLAN SHALL IDENTIFY COMMON FUNCTIONS AND ASSIGN,
 TRANSFER, SHARE OR CONSOLIDATE, IN WHOLE  OR  IN  PART,  SUCH  FUNCTIONS
 BETWEEN  THE AUTHORITY AND ITS SUBSIDIARIES, AFFILIATES AND SUBSIDIARIES
 OF AFFILIATES AND SHALL BE ACCOMPANIED BY AN INDEPENDENT  EVALUATION  OF
 EXISTING PERSONNEL WITHIN OR BETWEEN ITSELF, ITS SUBSIDIARIES, OR AFFIL-
 IATES  OR THEIR SUBSIDIARIES IN COORDINATION WITH THE AUTHORITY'S SENIOR
 MANAGEMENT.
   (B) UPON RECEIPT OF THE REVIEW  PURSUANT  TO  SECTION  TWELVE  HUNDRED
 SEVENTY-NINE-F  OF THIS TITLE THE AUTHORITY SHALL REVISE THE REORGANIZA-
 TION PLAN TO CONSIDER AND INCORPORATE THE FINDINGS OF SUCH REVIEW WITHIN
 NINETY DAYS OF RECEIPT.
   2. SUCH ASSIGNMENT, TRANSFER, SHARING, OR  CONSOLIDATION  PURSUANT  TO
 THIS  SECTION SHALL OCCUR ONLY IF APPROVED BY RESOLUTION OF THE BOARD OF
 THE AUTHORITY, SERVING ON BEHALF  OF  THE  AUTHORITY  AND  ANY  AFFECTED
 SUBSIDIARY  OR AFFILIATE OR THEIR SUBSIDIARY, ADOPTED BY NOT LESS THAN A
 MAJORITY VOTE OF THE WHOLE NUMBER OF MEMBERS OF THE  AUTHORITY  THEN  IN
 OFFICE,  WITH  THE CHAIRMAN HAVING ONE ADDITIONAL VOTE IN THE EVENT OF A
 TIE VOTE.
   3. PURSUANT TO THIS SECTION, ANY SUCH ASSIGNING,  TRANSFERRING,  SHAR-
 ING,  OR  CONSOLIDATING OF POWERS, DUTIES, FUNCTIONS OR ACTIVITIES SHALL
 NOT BE AUTHORIZED WHERE IT WOULD IMPAIR ANY RIGHTS AND REMEDIES  OF  ANY
 HOLDERS  OF  NOTES,  BONDS OR OTHER OBLIGATIONS ISSUED BY THE AUTHORITY,
 ITS SUBSIDIARIES, OR AFFILIATES OR THEIR SUBSIDIARIES. NOTHING SET FORTH
 IN THIS SECTION SHALL BE CONSTRUED TO IMPEDE, INFRINGE OR  DIMINISH  THE
 RIGHTS  AND  BENEFITS  THAT  ACCRUE  TO  EMPLOYEES AND EMPLOYERS THROUGH
 COLLECTIVE BARGAINING AGREEMENTS, OR  IMPACT  OR  CHANGE  AN  EMPLOYEE'S
 MEMBERSHIP IN A BARGAINING UNIT.
   4. NO CONSOLIDATION SHALL RESULT IN THE COMPLETE DISSOLUTION OR MERGER
 WITHIN OR BETWEEN THE AUTHORITY OR ITS SUBSIDIARIES, AFFILIATES OR THEIR
 SUBSIDIARIES.
   §  2.  Subdivision 1 of section 1264 of the public authorities law, as
 amended by chapter 717 of the laws  of  1967,  is  amended  to  read  as
 follows:

 S. 1509--C                         255                        A. 2009--C
 
   1.  The  purposes  of  the authority shall be the continuance, further
 development  and  improvement  of  commuter  transportation  and   other
 services related thereto within the metropolitan commuter transportation
 district,  including but not limited to such transportation by railroad,
 omnibus,  marine  and  air,  in  accordance  with the provisions of this
 title. It shall be the further purpose of the authority, consistent with
 its status as the ex officio board of both the  New  York  city  transit
 authority and the triborough bridge and tunnel authority, to develop and
 implement  a  unified mass transportation policy for such district IN AN
 EFFICIENT AND COST-EFFECTIVE MANNER THAT INCLUDES  THE  USE  OF  DESIGN-
 BUILD  CONTRACTING  ON  ALL PROJECTS OVER TWENTY-FIVE MILLION DOLLARS IN
 COST EXCEPT WHERE A WAIVER IS GRANTED  BY  THE  NEW  YORK  STATE  BUDGET
 DIRECTOR  PURSUANT  TO A REQUEST IN WRITING FROM THE METROPOLITAN TRANS-
 PORTATION AUTHORITY.  FOR PURPOSES OF GRANTING A WAIVER PURSUANT TO THIS
 SECTION, SUCH REVIEW SHALL CONSIDER WHETHER THE DESIGN BUILD CONTRACTING
 METHOD IS APPROPRIATE FOR THE PROJECT THAT SUCH WAIVER  IS  SOUGHT  FOR,
 AND  THE AMOUNT OF SAVINGS AND EFFICIENCIES THAT COULD BE ACHIEVED USING
 SUCH METHOD. THE DETERMINATION FOR SUCH WAIVER SHALL BE MADE IN  WRITING
 WITHIN FORTY-FIVE DAYS FROM REQUEST OR SHALL BE DEEMED GRANTED.
   §  3.  Subdivision  1 of section 1263 of the public authorities law is
 amended by adding a new paragraph (c) to read as follows:
   (C) (I) NOTWITHSTANDING ANY INCONSISTENT PROVISION  OF  THIS  SECTION,
 THE  TERM  OF ANY MEMBER SHALL EXPIRE UPON THE EXPIRATION OF THE TERM IN
 OFFICE BEING SERVED BY THE COUNTY ELECTED OFFICIAL UPON WHOSE  RECOMMEN-
 DATION THEY WERE APPOINTED; PROVIDED, HOWEVER, THAT IN SUCH CIRCUMSTANCE
 SUCH  MEMBER  MAY SERVE AS A HOLDOVER APPOINTEE FOR SIXTY DAYS, OR UNTIL
 SUCH TIME AS A NEW MEMBER IS APPOINTED, WHICHEVER IS LESS. THE  TERM  OF
 ANY  MEMBER  APPOINTED TO REPLACE SUCH A HOLDOVER APPOINTEE SHALL EXPIRE
 AT THE END OF THE TERM IN OFFICE OF THE  COUNTY  ELECTED  OFFICIAL  UPON
 WHOSE  RECOMMENDATION  SUCH  MEMBER  WAS  APPOINTED. IF A COUNTY ELECTED
 OFFICIAL LEAVES OFFICE BECAUSE OF DEATH, RESIGNATION, REMOVAL  OR  DISA-
 BILITY,  HOWEVER, A MEMBER APPOINTED UPON SUCH OFFICIAL'S RECOMMENDATION
 SHALL CONTINUE TO SERVE UNTIL SUCH TIME AS SUCH COUNTY ELECTED OFFICE IS
 FILLED, AT WHICH TIME SUCH MEMBER WILL BECOME A HOLDOVER  APPOINTEE  AND
 MAY  SERVE  FOR  SIXTY  DAYS,  OR  UNTIL  SUCH  TIME  AS A NEW MEMBER IS
 APPOINTED, WHICHEVER IS LESS.
   (II) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS  SECTION,  THE
 TERM  OF  ANY CHAIRMAN OR ANY MEMBER SHALL EXPIRE UPON THE EXPIRATION OF
 THE TERM IN OFFICE BEING SERVED BY THE CITY OR  STATE  ELECTED  OFFICIAL
 UPON  WHOSE  RECOMMENDATION THEY WERE APPOINTED; PROVIDED, HOWEVER, THAT
 IN SUCH CIRCUMSTANCE THE CHAIRMAN OR SUCH MEMBER MAY SERVE AS A HOLDOVER
 APPOINTEE UNTIL SUCH TIME AS A NEW CHAIRMAN OR MEMBER IS APPOINTED.  THE
 TERM  OF  ANY  CHAIRMAN  OR  MEMBER APPOINTED TO REPLACE SUCH A HOLDOVER
 APPOINTEE SHALL EXPIRE AT THE END OF THE TERM IN OFFICE OF THE  CITY  OR
 STATE ELECTED OFFICIAL UPON WHOSE RECOMMENDATION SUCH CHAIRMAN OR MEMBER
 WAS APPOINTED.
   §  4.  The  public  authorities law is amended by adding a new section
 1279-f to read as follows:
   § 1279-F. INDEPENDENT FORENSIC AUDIT. 1. THE AUTHORITY SHALL  CONTRACT
 WITH  A  CERTIFIED  PUBLIC ACCOUNTING FIRM FOR THE PROVISION OF AN INDE-
 PENDENT, COMPREHENSIVE, FORENSIC AUDIT  OF  THE  AUTHORITY.  SUCH  AUDIT
 SHALL  BE  PERFORMED  IN  ACCORDANCE  WITH GENERALLY ACCEPTED GOVERNMENT
 AUDITING STANDARDS. SUCH AUDIT SHALL INCLUDE, BUT IS NOT  LIMITED  TO  A
 COMPLETE AND THOROUGH EXAMINATION AND DETAILED ACCOUNTING OF THE AUTHOR-
 ITY'S CAPITAL ELEMENTS, BROKEN DOWN BY AGENCY, INCLUDING BUT NOT LIMITED
 TO:  ROLLING STOCK AND OMNIBUSES, PASSENGER STATIONS, TRACK, LINE EQUIP-

 S. 1509--C                         256                        A. 2009--C
 
 MENT, LINE STRUCTURES,  SIGNALS  AND  COMMUNICATIONS,  POWER  EQUIPMENT,
 EMERGENCY  POWER  EQUIPMENT  AND  SUBSTATIONS, SHOPS, YARDS, MAINTENANCE
 FACILITIES, DEPOTS AND TERMINALS, SERVICE  VEHICLES,  SECURITY  SYSTEMS,
 ELECTRIFICATION  EXTENSIONS, AND UNSPECIFIED, MISCELLANEOUS AND EMERGEN-
 CY.
   THE AUTHORITY SHALL ALSO CONTRACT WITH A FINANCIAL ADVISORY FIRM  WITH
 A  NATIONAL  PRACTICE FOR THE PROVISIONS OF A REVIEW OF:  (A) ANY FRAUD,
 WASTE, ABUSE, OR CONFLICTS OR INTEREST OCCURRING WITHIN ANY  DEPARTMENT,
 DIVISION,  OR OFFICE OF THE AUTHORITY, ITS SUBSIDIARIES, AFFILIATES, AND
 SUBSIDIARIES OF AFFILIATES; (B) ANY DUPLICATION OF FUNCTIONS  OR  DUTIES
 BETWEEN  THE  DEPARTMENTS,  DIVISIONS  OR  OFFICE  OF THE AUTHORITY, ITS
 SUBSIDIARIES, AFFILIATES, AND SUBSIDIARIES OF  AFFILIATES;  (C)  OPTIONS
 FOR  POTENTIAL  COST  EFFICIENCIES  AND  SAVINGS  THAT COULD BE ACHIEVED
 THROUGH CHANGES IN INTERNAL CONTROLS AND MANAGEMENT REFORMS,  FUNCTIONAL
 AND  PROCESS STREAMLINING, INTERNAL PROCUREMENT PROCESS REFORMS; (D) THE
 TWO THOUSAND FIFTEEN TO TWO THOUSAND  NINETEEN  CAPITAL  PLAN  FOR  COST
 OVERAGES  AND  DUPLICATION; (E) THE DEVELOPMENT OF STANDARDIZED PERFORM-
 ANCE METRICS FOR PLANNING, DESIGN,  APPROVALS,  CHANGE  ORDERS,  PROJECT
 MANAGEMENT  AND  DELIVERY;  AND (F) CASH FLOW AND ACCOUNTING OF EXPENDI-
 TURES OF THE AUTHORITY, ITS SUBSIDIARIES, AFFILIATES,  AND  SUBSIDIARIES
 OF AFFILIATES FOR THE PRECEDING THREE FISCAL YEARS.
   2.  SUCH  AUDIT SHALL BE COMPLETED AND SUBMITTED TO THE BOARD NO LATER
 THAN JANUARY FIRST, TWO THOUSAND  TWENTY  AND  POSTED  PUBLICLY  ON  THE
 AUTHORITY'S  WEBSITE WITHIN THIRTY DAYS OF SUBMISSION TO THE BOARD. SUCH
 REVIEWS SHALL BE COMPLETED AND SUBMITTED TO THE BOARD NO LATER THAN JULY
 THIRTY-FIRST, TWO THOUSAND NINETEEN AND POSTED PUBLICLY ON THE  AUTHORI-
 TY'S WEBSITE WITHIN THIRTY DAYS OF SUBMISSION TO THE BOARD.
   3.  THE  CERTIFIED  INDEPENDENT  PUBLIC  ACCOUNTING FIRM PROVIDING THE
 AUTHORITY'S INDEPENDENT, COMPREHENSIVE, FORENSIC AUDIT SHALL  ADHERE  TO
 THE  REQUIREMENTS  IN  PARAGRAPHS  (A), (B) AND (C) OF THIS SUBDIVISION;
 PROVIDED, HOWEVER, THE AUTHORITY MAY CONTRACT WITH  AN  ACCOUNTING  FIRM
 NOTWITHSTANDING  PARAGRAPHS  (A),  (B)  AND  (C) OF THIS SUBDIVISION AND
 NOTWITHSTANDING SECTION TWELVE HUNDRED SEVENTY-SIX-C OF THIS TITLE  UPON
 A WRITTEN DETERMINATION BY THE BOARD OF THE AUTHORITY WHICH SHALL DETAIL
 THAT SUCH ACCOUNTING FIRM WAS AWARDED SUCH CONTRACT ON THE BASIS THAT NO
 ACCOUNTING  FIRM MEETS THE REQUIREMENTS SET FORTH IN PARAGRAPHS (A), (B)
 AND (C) OF THIS SUBDIVISION.
   (A) SUCH CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM SHALL BE PROHIB-
 ITED FROM PROVIDING AUDIT SERVICES TO THE AUTHORITY IF THE AUDIT PARTNER
 HAVING PRIMARY RESPONSIBILITY FOR THE AUDIT OR THE AUDIT PARTNER RESPON-
 SIBLE FOR REVIEWING THE AUDIT  HAS  PERFORMED  AUDIT  SERVICES  FOR  THE
 AUTHORITY IN ANY OF THE FIVE PREVIOUS FISCAL YEARS OF THE AUTHORITY.
   (B) SUCH CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM SHALL BE PROHIB-
 ITED FROM PERFORMING ANY NON-AUDIT SERVICES TO THE AUTHORITY CONTEMPORA-
 NEOUSLY  WITH  THE  AUDIT,  INCLUDING: (1) BOOKKEEPING OR OTHER SERVICES
 RELATED TO THE  ACCOUNTING  RECORDS  OR  FINANCIAL  STATEMENTS  OF  SUCH
 AUTHORITY;  (2) FINANCIAL INFORMATION SYSTEMS DESIGN AND IMPLEMENTATION;
 (3) APPRAISAL OR VALUATION SERVICES,  FAIRNESS  OPINIONS,  OR  CONTRIBU-
 TION-IN-KIND   REPORTS;  (4)  ACTUARIAL  SERVICES;  (5)  INTERNAL  AUDIT
 OUTSOURCING SERVICES; (6) MANAGEMENT FUNCTIONS OR  HUMAN  SERVICES;  (7)
 BROKER  OR  DEALER,  INVESTMENT ADVISOR, OR INVESTMENT BANKING SERVICES;
 AND (8) LEGAL SERVICES AND EXPERT SERVICES UNRELATED TO THE AUDIT.
   (C) SUCH CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM SHALL BE PROHIB-
 ITED FROM PROVIDING AUDIT SERVICES  TO  THE  AUTHORITY  IF  AN  EMPLOYEE
 ASSIGNED  TO THE AUDIT HAS PERFORMED AUDIT SERVICES FOR THE AUTHORITY OR

 S. 1509--C                         257                        A. 2009--C
 
 HAS BEEN EMPLOYED BY THE AUTHORITY IN ANY OF THE THREE  PREVIOUS  FISCAL
 YEARS OF THE AUTHORITY.
   §  5.  The  public  authorities law is amended by adding a new section
 1279-g to read as follows:
   § 1279-G. MAJOR CONSTRUCTION REVIEW UNIT. THE AUTHORITY  SHALL  ESTAB-
 LISH  THE MAJOR CONSTRUCTION REVIEW UNIT WITHIN THE AUTHORITY THAT SHALL
 CONSIST OF A PANEL OF INTERNAL AND EXTERNAL  EXPERTS  APPOINTED  BY  THE
 BOARD.  PANEL MEMBERS SHALL HAVE EXTENSIVE BACKGROUND OR EXECUTIVE EXPE-
 RIENCE IN AT LEAST ONE OF  THE  FOLLOWING  AREAS:  ENGINEERING;  DESIGN;
 CONSTRUCTION;  OR,  PROJECT  MANAGEMENT.   THE MAJOR CONSTRUCTION REVIEW
 UNIT SHALL REVIEW ALL LARGE SCALE PROJECTS OF THE AUTHORITY, ITS SUBSID-
 IARIES, AFFILIATES AND THE SUBSIDIARIES OF ITS AFFILIATES  BEFORE  AWARD
 AND  SHALL  ALSO  REVIEW  ANY  PLANS  INVOLVING  SIGNAL SYSTEM UPGRADES,
 INCLUDING, BUT NOT LIMITED TO THE  USE  OF  COMMUNICATIONS  BASED  TRAIN
 CONTROL  AND  ULTRA-WIDEBAND TECHNOLOGY FOR USE WITHIN THE NEW YORK CITY
 SUBWAY SYSTEM BEFORE THEY  SHALL  BE  IMPLEMENTED.  THE  REVIEW  OF  ANY
 PROJECT OR SYSTEM UPGRADE REFERRED TO THE REVIEW UNIT SHALL BE COMPLETED
 WITHIN  THIRTY DAYS FROM THE SUBMISSION OF SUCH PROJECT OR SYSTEM TO THE
 REVIEW UNIT.
   § 6. Subdivision 3 of section 1269-b of the public authorities law, as
 added by chapter 314 of the laws  of  1981,  the  opening  paragraph  as
 amended  by  chapter  637  of  the  laws  of 1996, is amended to read as
 follows:
   3. A plan may only be approved in two ways: (i) a plan shall  only  be
 approved  by  the  board  by a unanimous vote of the members entitled to
 vote thereon and within ninety days or by September fifteenth,  nineteen
 hundred  ninety-six  in  the  case of a plan submitted during the period
 described in paragraph (b) of subdivision one of this  section,  of  the
 submission  of  a plan the metropolitan transportation authority capital
 program review board may notify the authority of  its  approval  of  the
 same; or (ii) if the plan is not approved by the board within such nine-
 ty day period or by September fifteenth, nineteen hundred ninety-six, as
 the  case  may be, and no individual member of the board who is entitled
 to vote thereon has notified the authority in  writing  of  his  OR  HER
 disapproval  WITH  A  WRITTEN  EXPLANATION OF SUCH DISAPPROVAL INCLUDING
 SPECIFIC ASPECTS OF THE PLAN THAT ARE OF CONCERN AND WHAT STEPS COULD BE
 TAKEN TO ADDRESS SUCH CONCERNS within such period,  the  plan  shall  be
 deemed to have been approved. UPON THE RECEIPT OF A WRITTEN DISAPPROVAL,
 THE  AUTHORITY  SHALL  BE  PROVIDED AN OPPORTUNITY TO RESPOND IN WRITING
 WITHIN TEN DAYS OF THE RECEIPT OF SUCH DISAPPROVAL. UPON THE RECEIPT  OF
 SUCH RESPONSE, THE DISAPPROVING MEMBER SHALL HAVE TEN DAYS TO RECONSIDER
 AND WITHDRAW SUCH WRITTEN DISAPPROVAL.
   If  the plan is not approved, the authority may thereafter reformulate
 and resubmit such plan at any time. Within thirty days of the submission
 of such reformulated plan the board may  notify  the  authority  of  its
 approval  of  the  same by the unanimous vote of the members entitled to
 vote thereon, or, if the reformulated plan is not approved and no  indi-
 vidual  member of the board who is entitled to vote on such reformulated
 plan has notified the authority in writing of  his  OR  HER  disapproval
 within  such  period, the reformulated plan shall be deemed to have been
 approved.
   § 7. Subdivision 7-a of section 553 of the public authorities law,  as
 added  by  chapter  1033  of  the  laws  of  1970, is amended to read as
 follows:
   7-a. Notwithstanding any inconsistent provision of law, the bridge and
 tunnel officers employed by the authority shall have the power to  issue

 S. 1509--C                         258                        A. 2009--C
 
 simplified  traffic  informations  for traffic infractions as defined in
 section one hundred fifty-five of the vehicle and traffic law, committed
 on the sites owned, operated and maintained by the triborough bridge and
 tunnel  authority,  such informations to be administered pursuant to the
 provisions of title A of chapter forty of the administrative code of the
 city of New York or article two-A of the vehicle  and  traffic  law,  as
 applicable  AND  ALSO SHALL HAVE THE POWER TO ISSUE NOTICES OF VIOLATION
 FOR TRANSIT INFRACTIONS COMMITTED IN AND ABOUT ANY OR ALL OF THE FACILI-
 TIES, EQUIPMENT OR REAL PROPERTY OWNED,  OCCUPIED  OR  OPERATED  BY  THE
 METROPOLITAN  TRANSPORTATION  AUTHORITY  OR ITS SUBSIDIARIES AND THE NEW
 YORK CITY TRANSIT AUTHORITY AND ITS SUBSIDIARIES,  AS  PROVIDED  AND  IN
 ACCORDANCE  WITH SECTION TWELVE HUNDRED NINE-A OF THIS CHAPTER.  NOTHING
 SET FORTH IN THIS SUBDIVISION SHALL BE CONSTRUED TO IMPEDE, INFRINGE  OR
 DIMINISH  THE RIGHTS AND BENEFITS THAT ACCRUE TO EMPLOYEES AND EMPLOYERS
 THROUGH COLLECTIVE BARGAINING AGREEMENTS, OR IMPACT OR CHANGE AN EMPLOY-
 EE'S MEMBERSHIP IN A BARGAINING UNIT.
   § 8. The public authorities law is amended by  adding  a  new  section
 1279-h to read as follows:
   §  1279-H. DEBARMENT. THE AUTHORITY SHALL ESTABLISH, PURSUANT TO REGU-
 LATION, A DEBARMENT  PROCESS  FOR  CONTRACTORS  OF  THE  AUTHORITY  THAT
 PROHIBITS  SUCH  CONTRACTORS  FROM  BIDDING ON FUTURE CONTRACTS, AFTER A
 DEBARMENT DETERMINATION BY SUCH AUTHORITY, FOR A PERIOD  OF  FIVE  YEARS
 FROM  SUCH  DETERMINATION.  SUCH  REGULATIONS  MUST ENSURE NOTICE AND AN
 OPPORTUNITY TO BE HEARD BEFORE SUCH DEBARMENT DETERMINATION AND  PROVIDE
 AS  A  DEFENSE  ACTS  SUCH AS FORCE MAJEURE. SUCH REGULATIONS SHALL ONLY
 PROVIDE FOR A DEBARMENT IN SITUATIONS INVOLVING A  CONTRACTOR'S  FAILURE
 TO  SUBSTANTIALLY  COMPLETE  THE WORK WITHIN THE TIME FRAME SET FORTH IN
 THE CONTRACT, OR IN ANY  SUBSEQUENT  CHANGE  ORDER,  BY  MORE  THAN  TEN
 PERCENT  OF  THE  CONTRACT  TERM;  OR WHERE A CONTRACTOR'S DISPUTED WORK
 EXCEEDS TEN PERCENT OR MORE OF THE TOTAL  CONTRACT  COST  WHERE  CLAIMED
 COSTS  ARE  DEEMED  TO  BE  INVALID  PURSUANT BY THE CONTRACTUAL DISPUTE
 RESOLUTION PROCESS.
   § 9. Paragraph (b) of subdivision 1 of  section  1263  of  the  public
 authorities  law,  as  amended  by  chapter  727 of the laws of 1979, is
 amended to read as follows:
   (b) Vacancies occurring otherwise than by expiration of term shall  be
 filled  in  the  same manner as original appointments for the balance of
 the unexpired term, PROVIDED, HOWEVER, THAT IN THE EVENT  OF  A  VACANCY
 CAUSED  BY  THE DEATH, RESIGNATION, REMOVAL, OR DISABILITY OF THE CHAIR-
 MAN, THE VACANCY SHALL BE FILLED BY THE GOVERNOR BY AND WITH THE  ADVICE
 AND  CONSENT  OF THE SENATE FOR THE  UNEXPIRED TERM. NOTWITHSTANDING ANY
 OTHER PROVISION OF LAW TO THE CONTRARY, THE GOVERNOR SHALL DESIGNATE  AN
 ACTING CHAIRMAN FOR A PERIOD NOT TO EXCEED SIX MONTHS OR UNTIL A SUCCES-
 SOR  CHAIRMAN  HAS  BEEN CONFIRMED BY THE SENATE, WHICHEVER COMES FIRST.
 UPON THE EXPIRATION OF THE SIX-MONTH TERM, IF THE GOVERNOR HAS NOMINATED
 A SUCCESSOR CHAIRMAN, BUT THE SENATE HAS NOT ACTED UPON THE  NOMINATION,
 THE ACTING CHAIR CAN CONTINUE TO SERVE AS ACTING CHAIR FOR AN ADDITIONAL
 NINETY  DAYS  OR  UNTIL  THE  GOVERNOR'S  SUCCESSOR  CHAIR NOMINATION IS
 CONFIRMED BY THE SENATE, WHICHEVER COMES FIRST.
   § 10. The public authorities law is amended by adding  a  new  section
 1279-l to read as follows:
   § 1279-L. RIGHT TO SHARE EMPLOYEES. 1. IT IS HEREBY FOUND AND DECLARED
 TO BE NECESSARY AND PROPER TO AUTHORIZE THE AUTHORITY, ITS SUBSIDIARIES,
 AFFILIATES,  AND  SUBSIDIARIES  OF  AFFILIATES, POWERS TO EFFECTUATE AND
 ENSURE SUCH ENTITIES CONTINUED FINANCIAL VIABILITY, WHICH  IS  AT  ISSUE
 GIVEN SIZABLE OPERATING DEFICITS AND SIGNIFICANT CAPITAL NEEDS. ALLOWING

 S. 1509--C                         259                        A. 2009--C

 WHOLESALE  INTERNAL  MANAGEMENT  REFORMS  WILL  CREATE  SAVINGS,  COMBAT
 ENTRENCHED BUREAUCRACIES, CREATE  STREAMLINED,  UNIFORM,  AND  EFFICIENT
 SERVICES,  ENSURE PUBLIC ACCOUNTABILITY AND REESTABLISH PUBLIC TRUST. IN
 ORDER  TO  FACILITATE  THESE NECESSARY GOALS IT IS BOTH REASONABLE AND A
 LEGITIMATE PUBLIC PURPOSE TO PROVIDE SYSTEMATIC AUTHORITY FOR THE  SHAR-
 ING OF EMPLOYEES WITHIN AND BETWEEN THE RESPECTIVE ENTITIES.
   2.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE AUTHORI-
 TY, ITS SUBSIDIARIES, AFFILIATES, AND SUBSIDIARIES OF  AFFILIATES  SHALL
 EACH  HAVE THE RIGHT TO SHARE EMPLOYEES WITHIN AND BETWEEN SUCH ENTITIES
 AND TO ASSIGN SUCH  EMPLOYEES  TO  PERFORM  ANY  OPERATION  OR  FUNCTION
 SUBJECT  ONLY  TO A DETERMINATION THAT THEY ARE SUBSTANTIALLY SIMILAR TO
 ANY OPERATION OR FUNCTION CURRENTLY PERFORMED.    SUBSTANTIALLY  SIMILAR
 OPERATION OR FUNCTION SHALL BE DETERMINED EXCLUSIVELY BY THE AUTHORITY.
   3.    NOTHING  SET  FORTH  IN  THIS  SUBDIVISION SHALL BE CONSTRUED TO
 IMPEDE, INFRINGE OR DIMINISH THE RIGHTS  AND  BENEFITS  THAT  ACCRUE  TO
 EMPLOYEES  AND  EMPLOYERS  THROUGH  COLLECTIVE BARGAINING AGREEMENTS, OR
 IMPACT OR CHANGE AN EMPLOYEE'S MEMBERSHIP IN A BARGAINING UNIT.
   § 11. The metropolitan transportation authority shall, in consultation
 with the governor, the mayor of the city of New York, and  the  district
 attorneys  from the respective boroughs, establish a plan to combat fare
 evasion.  Such plan shall include enforcement strategies, station design
 modifications, recommended sanctions, and other actions as deemed neces-
 sary and proper.  Such plan shall be completed no later than the thirti-
 eth of June two thousand nineteen.
   § 12. For purposes of an independent review of  the  project  commonly
 referred  to  as  "East  Side  Access",  the metropolitan transportation
 authority shall establish an outside expert  advisory  group  to  review
 such  project  and  make  recommendations  to accelerate its completion.
 Such outside experts shall include members of  the  outside  independent
 review  team  established  to review the project commonly referred to as
 the "L-train project". Such review shall be completed as soon as practi-
 cable for consideration by  the  metropolitan  transportation  authority
 board.
   § 13. The 2020-2024 Metropolitan Transportation Authority capital plan
 shall  include  an  amount set-aside for transportation capital improve-
 ments for the subway system, bus system and commuter railroads,  includ-
 ing,  but  not limited to, investments in the subway system, new signal-
 ing,  new  subway  cars,  rolling   stock,   track   and   car   repair,
 accessibility, buses and bus system improvements, parking facilities and
 further  investments  in  expanding transit availability to areas in the
 outer boroughs and  suburbs  that  have  limited  mass  transit  options
 subject  to  a Memorandum of Understanding entered into by the Secretary
 of the Senate Finance Committee, the Secretary of the Assembly Committee
 on Ways and Means, and the Director of the Budget.  Such  Memorandum  of
 Understanding  shall  be  entered  into  not more than ninety days after
 approval of the 2020-2024 Metropolitan Transportation Authority  capital
 plan by the Metropolitan Transportation Authority Capital Program Review
 Board,  established  pursuant  to section twelve hundred sixty-nine-a of
 the public authorities law.
   § 14. This act shall take effect immediately.
 
                                 SUBPART C
 
   Section 1.  Subdivision 6 of section 1209 of  the  public  authorities
 law, as amended by chapter 30 of the laws of 2015, is amended to read as
 follows:

 S. 1509--C                         260                        A. 2009--C
 
   6.  The  provisions  of  subdivisions one, two, three and four of this
 section shall not be applicable to  any  procurement  by  the  authority
 commenced  during the period from the effective date of this subdivision
 until December thirty-first, nineteen hundred ninety-one or  during  the
 period from December sixteenth, nineteen hundred ninety-three until June
 thirtieth,  two  thousand [nineteen] TWENTY-THREE; and the provisions of
 subdivisions seven, eight, nine, ten, eleven,  twelve  and  thirteen  of
 this section shall only apply to procurements by the authority commenced
 during such periods. The provisions of such subdivisions one, two, three
 and  four  shall apply to procurements by the authority commenced during
 the period from December thirty-first, nineteen hundred ninety-one until
 December sixteenth, nineteen hundred ninety-three, and  to  procurements
 by  the authority commenced on and after July first, two thousand [nine-
 teen] TWENTY-THREE. Notwithstanding the  foregoing,  the  provisions  of
 such  subdivisions one, two, three and four shall apply to (i) the award
 of any contract of the authority if the bid documents for such  contract
 so  provide  and  such bid documents are issued within sixty days of the
 effective date of this subdivision or  within  sixty  days  of  December
 sixteenth,  nineteen  hundred  ninety-three, or (ii) for a period of one
 hundred eighty days after the effective date of this subdivision, or for
 a period of one hundred eighty days after December  sixteenth,  nineteen
 hundred  ninety-three, the award of any contract for which an invitation
 to bid, solicitation, request for proposal, or any similar document  has
 been  issued by the authority prior to the effective date of this subdi-
 vision or during the period from January first, nineteen  hundred  nine-
 ty-two until December fifteenth, nineteen hundred ninety-three.
   §  1-a. Subdivision 1 of section 1265-a of the public authorities law,
 as amended by chapter 30 of the laws of 2015,  is  amended  to  read  as
 follows:
   1.  The provisions of this section shall only apply to procurements by
 the authority commenced during the period  from  April  first,  nineteen
 hundred eighty-seven until December thirty-first, nineteen hundred nine-
 ty-one,  and during the period from December sixteenth, nineteen hundred
 ninety-three until June thirtieth, two thousand [nineteen] TWENTY-THREE;
 provided, however, that the provisions of this section shall  not  apply
 to  (i)  the award of any contract of the authority if the bid documents
 for such contract so provide and such bid documents  are  issued  within
 sixty days of the effective date of this section or within sixty days of
 December  sixteenth, nineteen hundred ninety-three, or (ii) for a period
 of one hundred eighty days after the effective date of this  section  or
 for  a period of one hundred eighty days after December sixteenth, nine-
 teen hundred ninety-three, the award of any contract for which an  invi-
 tation  to bid, solicitation, request for proposal, or any similar docu-
 ment has been issued by the authority prior to  the  effective  date  of
 this  section  or during the period from January first, nineteen hundred
 ninety-two until December sixteenth, nineteen hundred ninety-three.
   § 2. Section 1209 of the public authorities law is amended by adding a
 new subdivision 15 to read as follows:
   15. (A) WHENEVER THE  COMPTROLLER  PURSUANT  TO  SECTION  TWENTY-EIGHT
 HUNDRED SEVENTY-NINE-A OF THIS CHAPTER INTENDS TO REQUIRE SUPERVISION IN
 THE  FORM  OF PRIOR REVIEW AND APPROVAL OF A CONTRACT OR CONTRACT AMEND-
 MENT TO BE AWARDED BY THE AUTHORITY PURSUANT TO THIS SECTION, THEN  SUCH
 CONTRACT  OR CONTRACT AMENDMENT SHALL BE SUBMITTED TO THE COMPTROLLER BY
 THE AUTHORITY FOR APPROVAL AND SHALL NOT BE A VALID ENFORCEABLE CONTRACT
 UNLESS IT SHALL FIRST HAVE BEEN APPROVED BY THE COMPTROLLER BUT ONLY  IF
 THE  COMPTROLLER HAS NOTIFIED THE AUTHORITY OF SUCH DETERMINATION WITHIN

 S. 1509--C                         261                        A. 2009--C
 
 THIRTY DAYS OF HAVING  RECEIVED  WRITTEN  NOTICE  OF  SUCH  CONTRACT  OR
 CONTRACT  AMENDMENT  EITHER  IN  THE  AUTHORITY'S  ANNUAL  REPORT OR ANY
 REVISED REPORT;
   (B)  IF  THE COMPTROLLER HAS TIMELY NOTIFIED THE AUTHORITY AS PROVIDED
 IN PARAGRAPH (A) OF THIS  SUBDIVISION  THAT  ANY  CONTRACT  OR  CONTRACT
 AMENDMENT SHALL BE SUBJECT TO COMPTROLLER PRIOR REVIEW AND APPROVAL, AND
 SUCH  CONTRACT  OR  CONTRACT  AMENDMENT  HAS BEEN SUBMITTED TO THE COMP-
 TROLLER, IT SHALL BECOME VALID AND ENFORCEABLE WITHOUT SUCH APPROVAL  IF
 THE COMPTROLLER HAS NOT APPROVED OR DISAPPROVED IT WITHIN THIRTY DAYS OF
 SUBMISSION TO THE COMPTROLLER.
   §  2-a.  Section  1265-a  of  the public authorities law is amended by
 adding a new subdivision 10 to read as follows:
   10. (A) WHENEVER THE  COMPTROLLER  PURSUANT  TO  SECTION  TWENTY-EIGHT
 HUNDRED SEVENTY-NINE-A OF THIS CHAPTER INTENDS TO REQUIRE SUPERVISION IN
 THE  FORM  OF PRIOR REVIEW AND APPROVAL OF A CONTRACT OR CONTRACT AMEND-
 MENT TO BE AWARDED BY THE AUTHORITY PURSUANT TO THIS SECTION, THEN  SUCH
 CONTRACT  OR CONTRACT AMENDMENT SHALL BE SUBMITTED TO THE COMPTROLLER BY
 THE AUTHORITY FOR APPROVAL AND SHALL NOT BE A VALID ENFORCEABLE CONTRACT
 UNLESS IT SHALL FIRST HAVE BEEN APPROVED BY THE COMPTROLLER BUT ONLY  IF
 THE  COMPTROLLER HAS NOTIFIED THE AUTHORITY OF SUCH DETERMINATION WITHIN
 THIRTY DAYS OF HAVING  RECEIVED  WRITTEN  NOTICE  OF  SUCH  CONTRACT  OR
 CONTRACT  AMENDMENT  EITHER  IN  THE  AUTHORITY'S  ANNUAL  REPORT OR ANY
 REVISED REPORT;
   (B) IF THE COMPTROLLER HAS TIMELY NOTIFIED THE AUTHORITY  AS  PROVIDED
 IN  PARAGRAPH  (A)  OF  THIS  SUBDIVISION  THAT ANY CONTRACT OR CONTRACT
 AMENDMENT SHALL BE SUBJECT TO COMPTROLLER PRIOR REVIEW AND APPROVAL, AND
 SUCH CONTRACT OR CONTRACT AMENDMENT HAS  BEEN  SUBMITTED  TO  THE  COMP-
 TROLLER,  IT SHALL BECOME VALID AND ENFORCEABLE WITHOUT SUCH APPROVAL IF
 THE COMPTROLLER HAS NOT APPROVED OR DISAPPROVED IT WITHIN THIRTY DAYS OF
 SUBMISSION TO THE COMPTROLLER.
   § 3. Paragraphs (a) and (b) of subdivision 7 of section  1209  of  the
 public authorities law, as amended by section 1 of part OO of chapter 54
 of the laws of 2016, are amended to read as follows:
   (a)  Except  as  otherwise  provided  in  this  section,  all purchase
 contracts for supplies, materials or equipment  involving  an  estimated
 expenditure  in excess of [one hundred thousand] ONE MILLION dollars and
 all contracts for public work  involving  an  estimated  expenditure  in
 excess of [one hundred thousand] ONE MILLION dollars shall be awarded by
 the  authority  to  the lowest responsible bidder after obtaining sealed
 bids in the manner hereinafter set forth. The aforesaid shall not  apply
 to  contracts  for personal, architectural, engineering or other profes-
 sional services. The authority may reject all bids and obtain  new  bids
 in  the  manner provided by this section when it is deemed in the public
 interest to do so or, in cases where two  or  more  responsible  bidders
 submit  identical  bids which are the lowest bids, award the contract to
 any of such bidders or obtain new bids from such bidders. Nothing [here-
 in] IN THIS PARAGRAPH shall obligate the  authority  to  seek  new  bids
 after  the  rejection  of bids or after cancellation of an invitation to
 bid. Nothing in this section shall prohibit the evaluation  of  bids  on
 the  basis of costs or savings including life cycle costs of the item to
 be purchased, discounts, and inspection services so long as the  invita-
 tion  to bid reasonably sets forth the criteria to be used in evaluating
 such costs or savings. Life cycle costs may include  but  shall  not  be
 limited  to  costs  or savings associated with installation, energy use,
 maintenance, operation and salvage or disposal.

 S. 1509--C                         262                        A. 2009--C
 
   (b) Section twenty-eight hundred seventy-nine of  this  chapter  shall
 apply  to  the authority's acquisition of goods or services of any kind,
 in the actual or estimated amount of fifteen thousand dollars  or  more,
 provided  that  (i)  a  contract for services in the actual or estimated
 amount  of  [less than one hundred thousand] ONE MILLION dollars OR LESS
 shall not require approval by the board of the authority  regardless  of
 the  length  of  the  period  over  which the services are rendered, and
 provided further that a contract for services in the actual or estimated
 amount [of one hundred thousand] IN EXCESS OF ONE  MILLION  dollars  [or
 more] shall require approval by the board of the authority regardless of
 the  length  of  the  period over which the services are rendered unless
 such a contract is  awarded  to  the  lowest  responsible  bidder  after
 obtaining  sealed bids and (ii) the board of the authority may by resol-
 ution adopt guidelines that authorize the award of  contracts  to  small
 business  concerns,  to service disabled veteran owned businesses certi-
 fied pursuant to article seventeen-B of the executive law,  or  minority
 or  women-owned  business  enterprises  certified  pursuant  to  article
 fifteen-A of the executive law, or purchases of goods or technology that
 are recycled or remanufactured, in an amount not to exceed [four hundred
 thousand] ONE MILLION dollars without a formal competitive  process  and
 without  further  board approval. The board of the authority shall adopt
 guidelines which shall be made publicly available for  the  awarding  of
 such contract without a formal competitive process.
   §  3-a.  Paragraphs  (a) and (b) of subdivision 2 of section 1265-a of
 the public authorities law, as amended by section 8 of part OO of  chap-
 ter 54 of the laws of 2016, are amended to read as follows:
   (a)  Except  as  otherwise  provided  in  this  section,  all purchase
 contracts for supplies, materials or equipment  involving  an  estimated
 expenditure  in excess of [one hundred thousand] ONE MILLION dollars and
 all contracts for public work  involving  an  estimated  expenditure  in
 excess of [one hundred thousand] ONE MILLION dollars shall be awarded by
 the  authority  to  the lowest responsible bidder after obtaining sealed
 bids in the manner hereinafter set forth. For purposes hereof, contracts
 for public work shall exclude contracts for  personal,  engineering  and
 architectural,  or  professional  services. The authority may reject all
 bids and obtain new bids in the manner provided by this section when  it
 is deemed in the public interest to do so or, in cases where two or more
 responsible  bidders  submit  identical  bids which are the lowest bids,
 award the contract to any of such bidders or obtain new bids  from  such
 bidders. Nothing [herein] IN THIS PARAGRAPH shall obligate the authority
 to seek new bids after the rejection of bids or after cancellation of an
 invitation to bid. Nothing in this section shall prohibit the evaluation
 of  bids  on the basis of costs or savings including life cycle costs of
 the item to be purchased, discounts, and inspection services so long  as
 the  invitation  to bid reasonably sets forth the criteria to be used in
 evaluating such costs or savings. Life cycle costs may include but shall
 not be limited to costs or savings associated with installation,  energy
 use, maintenance, operation and salvage or disposal.
   (b)  Section  twenty-eight  hundred seventy-nine of this chapter shall
 apply to the authority's acquisition of goods or services of  any  kind,
 in  the  actual or estimated amount of fifteen thousand dollars or more,
 provided (i) that a contract for services in  the  actual  or  estimated
 amount  of  [less than one hundred thousand] ONE MILLION dollars OR LESS
 shall not require approval by the board of the authority  regardless  of
 the  length  of  the  period  over  which the services are rendered, and
 provided further that a contract for services in the actual or estimated

 S. 1509--C                         263                        A. 2009--C
 
 amount [of one hundred thousand] IN EXCESS OF ONE  MILLION  dollars  [or
 more] shall require approval by the board of the authority regardless of
 the  length  of  the  period over which the services are rendered unless
 such  a  contract  is  awarded  to  the  lowest responsible bidder after
 obtaining sealed bids, and (ii) the board of the authority may by resol-
 ution adopt guidelines that authorize the award of  contracts  to  small
 business  concerns,  to service disabled veteran owned businesses certi-
 fied pursuant to article seventeen-B of the executive law,  or  minority
 or  women-owned  business  enterprises  certified  pursuant  to  article
 fifteen-A of the executive law, or purchases of goods or technology that
 are recycled or remanufactured, in an amount not to exceed [four hundred
 thousand] ONE MILLION dollars without a formal competitive  process  and
 without  further  board approval. The board of the authority shall adopt
 guidelines which shall be made publicly available for  the  awarding  of
 such contract without a formal competitive process.
   § 4. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be adjudged by a court of compe-
 tent jurisdiction to be invalid, such judgment shall not affect, impair,
 or invalidate the remainder thereof, but shall be confined in its opera-
 tion  to  the  clause, sentence, paragraph, subdivision, section or part
 thereof directly involved in the  controversy  in  which  such  judgment
 shall  have been rendered. It is hereby declared to be the intent of the
 legislature that this act would have been enacted even if  such  invalid
 provision had not been included herein.
   § 5. This act shall take effect immediately, provided, however, that:
   (a)  the  amendments  to  paragraphs  (a)  and (b) of subdivision 7 of
 section 1209 of the public authorities law made by section three of this
 act shall not affect the expiration of such  subdivision  and  shall  be
 deemed to expire therewith; and
   (b)  the  amendments  to  paragraphs  (a)  and (b) of subdivision 2 of
 section 1265-a of the public authorities law made by section three-a  of
 this act shall not affect the expiration of such paragraphs and shall be
 deemed to expire therewith.
 
                                 SUBPART D
 
   Section 1. Legislative intent. The legislature finds and declares that
 performance metrics used by the Metropolitan Transportation Authority do
 not provide adequate information about the actual performance and deliv-
 ery  of  the Authority's services, and that improved data collection and
 sharing on system performance and service delivery could  yield  signif-
 icant improvements at the Authority.
   §  2.  The  public  authorities law is amended by adding a new section
 1276-f to read as follows:
   § 1276-F. METROPOLITAN TRANSPORTATION  AUTHORITY  TRANSIT  PERFORMANCE
 METRICS. 1. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "ADDITIONAL  PLATFORM  TIME"  MEANS  THE  AVERAGE ADDED TIME THAT
 CUSTOMERS SPEND WAITING ON THE PLATFORM FOR A TRAIN, COMPARED WITH THEIR
 SCHEDULED WAIT TIME.
   (B) "ADDITIONAL TRAIN TIME" MEANS THE AVERAGE ADDITIONAL TIME  CUSTOM-
 ERS SPEND ONBOARD THE TRAIN DUE TO VARIOUS SERVICE ISSUES.
   (C)  "CUSTOMER  JOURNEY  TIME  PERFORMANCE"  MEANS  THE  PERCENTAGE OF
 CUSTOMER TRIPS WITH AN ESTIMATED TOTAL TRAVEL TIME WITHIN TWO MINUTES OF
 THE SCHEDULED TOTAL TRAVEL TIME.

 S. 1509--C                         264                        A. 2009--C
 
   (D)  "ELEVATOR  AVAILABILITY"  MEANS  PERCENTAGE  OF  FACILITIES  THAT
 REQUIRE THE USE OF STAIRS AND HAVE AN OPERATIONAL ELEVATOR.
   (E)  "ESCALATOR  AVAILABILITY"  MEANS  PERCENTAGE  OF  FACILITIES THAT
 REQUIRE THE USE OF STAIRS AND HAVE AN OPERATIONAL ESCALATOR.
   (F) "EXCESS JOURNEY TIME" MEANS COMPARISON OF  MEASURED  JOURNEY  TIME
 COMPARED TO SCHEDULED AND STANDARD JOURNEY TIMES.
   (G)  "JOURNEY TIME METRIC" MEANS THE TIMES OF EACH COMPONENT OF A TRIP
 INCLUDING ACCESS, EGRESS, INTERCHANGE, TIME IN QUEUE FOR  TICKETS,  TIME
 ON  PLATFORM  AND  TIME ON TRAIN. JOURNEY TIME AND ITS COMPONENTS MAY BE
 BASED ON A MANUAL OR AN AUTOMATICALLY GENERATED SAMPLE.
   (H) "MAJOR INCIDENTS" MEAN INCIDENTS THAT DELAY TWENTY OR MORE TRAINS.
   (I) "STAFF HOURS LOST TO ACCIDENTS" MEANS  STAFF  HOURS  LOST  DUE  TO
 ACCIDENTS OR ILLEGAL ACTIVITY PER BILLION PASSENGER JOURNEYS.
   (J) "STANDARD JOURNEY TIME" MEANS THE IDEAL JOURNEY TIME CALCULATED BY
 THE METROPOLITAN TRANSPORTATION AUTHORITY FOR A PARTICULAR JOURNEY.
   (K)  "TERMINAL  ON-TIME  PERFORMANCE"  MEANS  THE PERCENTAGE OF TRAINS
 ARRIVING AT THEIR DESTINATION TERMINALS AS SCHEDULED.  A  TRAIN  MAY  BE
 COUNTED  AS  ON-TIME IF IT ARRIVES AT ITS DESTINATION EARLY, ON TIME, OR
 NO MORE THAN TWO MINUTES LATE, AND HAS NOT SKIPPED ANY PLANNED STOPS.
   2. REPORTING. THE METROPOLITAN TRANSPORTATION AUTHORITY SHALL TAKE ALL
 PRACTICABLE MEASURES TO COLLECT, COMPILE AND PUBLISH PERFORMANCE METRICS
 OF ALL SERVICES PROVIDED BY NEW YORK CITY TRANSIT SUBWAYS,  LONG  ISLAND
 RAILROAD AND METRO-NORTH RAILROAD ON A WEEKLY BASIS. THESE METRICS SHALL
 INCLUDE BUT NOT BE LIMITED TO:
   (A) ADDITIONAL PLATFORM TIME;
   (B) ADDITIONAL TRAIN TIME;
   (C) CUSTOMER JOURNEY TIME PERFORMANCE;
   (D) ELEVATOR AVAILABILITY;
   (E) ESCALATOR AVAILABILITY;
   (F) EXCESS JOURNEY TIME;
   (G) JOURNEY TIME METRIC;
   (H) MAJOR INCIDENTS METRIC;
   (I) STAFF HOURS LOST TO ACCIDENTS; AND
   (J) TERMINAL ON-TIME PERFORMANCE.
   3.  INTERNATIONAL  BENCHMARKING.  (A)  THE  AUTHORITY SHALL PUBLISH AN
 ANNUAL REPORT PRESENTING THE AUTHORITY'S PERFORMANCE IN COMPARISON  WITH
 OTHER  METROS WHO ARE MEMBERS OF THE COMMUNITY OF METROS KNOWN AS COMET.
 THIS REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING METRICS:
   (I) TOTAL OPERATING COST PER CAR PER MILE;
   (II) MAINTENANCE COST PER CAR PER KM;
   (III) PASSENGER JOURNEYS PER TOTAL STAFF AND CONTRACTOR HOURS; AND
   (IV) STAFF HOURS LOST TO ACCIDENTS.
   (B) THE AUTHORITY SHALL ALSO PROVIDE AN ANNUAL  IMPLEMENTATION  REPORT
 TO  THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF
 THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY AND  SENATE,  AND  THE
 CHAIRS  AND  RANKING  MEMBERS  OF  THE  TRANSPORTATION AND CORPORATIONS,
 AUTHORITIES AND COMMISSIONS COMMITTEES ON  OR  BEFORE  DECEMBER  THIRTY-
 FIRST EVERY YEAR, AND PUBLISH SUCH REPORT ON ITS WEBSITE.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.
 
                                 SUBPART E
 
   Section  1. Section 1269-c of the public authorities law is amended by
 adding a new subdivision c to read as follows:

 S. 1509--C                         265                        A. 2009--C
 
   C. ON OR BEFORE OCTOBER FIRST, TWO THOUSAND TWENTY-THREE,  AND  ON  OR
 BEFORE OCTOBER FIRST OF EVERY FIFTH YEAR THEREAFTER, THE AUTHORITY SHALL
 SUBMIT  TO  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY CAPITAL PROGRAM
 REVIEW BOARD A TWENTY-YEAR CAPITAL NEEDS ASSESSMENT.    SUCH  ASSESSMENT
 SHALL BEGIN WITH THE PERIOD COMMENCING JANUARY FIRST, TWO THOUSAND TWEN-
 TY-FIVE, AND BEGIN EACH ASSESSMENT WITH EVERY FIFTH YEAR THEREAFTER, AND
 DESCRIBE  CAPITAL  INVESTMENTS  OVER  THE  SUCCEEDING TWENTY YEARS. SUCH
 ASSESSMENT SHALL: (1) SET FORTH BROAD LONG-TERM CAPITAL  INVESTMENTS  TO
 BE  MADE  THROUGHOUT THE DISTRICT; AND (2) ESTABLISH A NON-BINDING BASIS
 TO BE USED BY THE AUTHORITY IN THE  PLANNING  OF  STRATEGIC  INVESTMENTS
 INVOLVING CAPITAL ELEMENTS IN ITS FIVE-YEAR CAPITAL PLANS.  SUCH ASSESS-
 MENT SHALL NOT REQUIRE A VOTE OF THE METROPOLITAN TRANSPORTATION AUTHOR-
 ITY CAPITAL PROGRAM REVIEW BOARD AND SHALL BE FOR INFORMATIONAL PURPOSES
 ONLY.  FOR  PURPOSES  OF  THIS SECTION, "BROAD LONG-TERM CAPITAL INVEST-
 MENTS" SHALL INCLUDE BUT NOT BE LIMITED TO: SYSTEM REBUILDING,  ENHANCE-
 MENT,  AND  EXPANSION NEEDS; AGENCY NEEDS BROKEN DOWN BY CAPITAL ELEMENT
 OR INVESTMENT CATEGORY; AND PROJECTED FUTURE TRENDS AND  NETWORK  IMPLI-
 CATIONS.  SUCH  ASSESSMENT  SHALL  BE  CERTIFIED  BY THE CHAIRMAN OF THE
 AUTHORITY AND SHALL BE ENTERED INTO THE PERMANENT RECORD OF THE  MINUTES
 OF THE REVIEW BOARD.
   § 2. This act shall take effect immediately.
 
                                 SUBPART F
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (jjj) to read as follows:
   (JJJ) CENTRAL BUSINESS DISTRICT TOLL CREDIT.  (1)  FOR  TAXABLE  YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, A RESIDENT
 INDIVIDUAL  WHOSE  PRIMARY  RESIDENCE IS LOCATED IN THE CENTRAL BUSINESS
 DISTRICT ESTABLISHED PURSUANT TO ARTICLE FORTY-FOUR-C OF THE VEHICLE AND
 TRAFFIC LAW AND WHOSE NEW YORK ADJUSTED GROSS  INCOME  FOR  THE  TAXABLE
 YEAR  IS  LESS THAN SIXTY THOUSAND DOLLARS SHALL BE ENTITLED TO A CREDIT
 AS CALCULATED PURSUANT TO PARAGRAPH TWO OF THIS SUBSECTION.
   (2) THE CREDIT SHALL BE EQUAL TO THE AGGREGATE AMOUNT OF CENTRAL BUSI-
 NESS DISTRICT TOLLS PAID BY THE TAXPAYER DURING THE TAXABLE YEAR  PURSU-
 ANT TO THE CENTRAL BUSINESS DISTRICT TOLLING PROGRAM AUTHORIZED BY ARTI-
 CLE FORTY-FOUR-C OF THE VEHICLE AND TRAFFIC LAW. PROVIDED, HOWEVER, THAT
 ANY TOLL THAT WOULD CONSTITUTE A TRADE OR BUSINESS EXPENSE UNDER SECTION
 162 OF THE INTERNAL REVENUE CODE SHALL BE EXCLUDED.
   (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 2. This act shall take effect immediately.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or Subpart of this act shall be adjudged by any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or Subpart thereof directly involved in the controversy  in  which  such
 judgment  shall  have  been  rendered.  It  is hereby declared to be the
 intent of the legislature that this act would have been enacted even  if
 such invalid provisions had not been included herein.

 S. 1509--C                         266                        A. 2009--C
 
   §  4.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Subparts A through F of this act  shall
 be as specifically set forth in the last section of such Subparts.
 
                                 PART AAAA
 
   Section  1.  Section  51  of  the public authorities law is amended by
 adding a new subdivision 6 to read as follows:
   6. A MEMBER OF THE BOARD MUST VOTE WITHIN THE  SCOPE  OF  HIS  OR  HER
 LEGAL  AUTHORITY.  THE LEGAL AUTHORITY OF A MEMBER OF THE BOARD PURSUANT
 TO THIS SECTION IS SOLELY TO DETERMINE WHETHER THE ISSUING AUTHORITY HAS
 DEMONSTRATED THAT THERE IS THE COMMITMENT OF FUNDS SUFFICIENT TO FINANCE
 THE ACQUISITION AND CONSTRUCTION OF THE  PROJECT  SUBJECT  TO  APPROVAL.
 FAILURE OF A MEMBER TO VOTE WITHIN THE SCOPE OF HIS OR HER LEGAL AUTHOR-
 ITY  CONSTITUTES  A  VIOLATION OF THE PUBLIC'S TRUST FOR THE PURPOSES OF
 PARAGRAPH H OF SUBDIVISION THREE OF SECTION SEVENTY-FOUR OF  THE  PUBLIC
 OFFICERS  LAW.  AS  THE  APPOINTING AUTHORITY, THE GOVERNOR HAS THE FULL
 DISCRETION TO IMMEDIATELY REMOVE A MEMBER OF THE BOARD HE OR  SHE  FINDS
 TO  BE  ACTING, OR THREATENING TO ACT, BEYOND THE SCOPE OF SUCH MEMBER'S
 LEGAL AUTHORITY SET FORTH HEREIN.
   § 2. Severability. If any provision of this act, or any application of
 any provision of this act, is held to be invalid, that shall not  affect
 the  validity or effectiveness of any other provision of this act, or of
 any other application of any provision of this act, which can  be  given
 effect  without  that  provision  or  application;  and to that end, the
 provisions and applications of this act are severable.
   § 3. This act shall take effect immediately.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved  in  the  controversy  in  which  such
 judgement  shall  have  been  rendered.  It is hereby declared to be the
 intent of the legislature that this act would have been enacted even  if
 such invalid provisions had not been included herein.
   §  3.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Parts A through AAAA of this act  shall
 be as specifically set forth in the last section of such Parts.