The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 1509                                                  A. 2009

                      S E N A T E - A S S E M B L Y

                            January 18, 2019
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when printed to be committed to the Committee on Finance

IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
  article seven of the Constitution -- read once  and  referred  to  the
  Committee on Ways and Means

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12574-01-9

S. 1509                             2                            A. 2009

  for assessment review services (Subpart B); to amend the real property
  tax law, in relation to the training of assessors and county directors
  of  real property tax services (Subpart C); to amend the real property
  tax law, in relation to providing certain notifications electronically
  (Subpart  D);  to  amend the real property tax law, in relation to the
  valuation and taxable  status  dates  of  special  franchise  property
  (Subpart  E);  and  to amend the real property tax law, in relation to
  the reporting requirements of power plants (Subpart F)  (Part  J);  to
  repeal  section  3-d of the general municipal law, relating to certif-
  ication of compliance with tax levy limit (Part K); to amend  the  tax
  law,  in  relation  to creating an employer-provided child care credit
  (Part L); to amend the tax law,  in  relation  to  including  gambling
  winnings  in  New York source income and requiring withholding thereon
  (Part M); to amend the tax law, in  relation  to  the  farm  workforce
  retention credit (Part N); to amend the tax law, in relation to updat-
  ing  tax preparer penalties; to amend part N of chapter 61 of the laws
  of 2005, amending the tax law relating  to  certain  transactions  and
  related  information  and  relating to the voluntary compliance initi-
  ative, in relation to  eliminating  the  expiration  thereof;  and  to
  repeal  certain  provisions  of  the tax law, relating to tax preparer
  penalties (Part O); to amend the tax law, in relation to extending the
  top personal income tax rate for five years (Part P); to amend the tax
  law and the administrative code of the city of New York,  in  relation
  to extending for five years the limitations on itemized deductions for
  individuals  with  incomes over one million dollars (Part Q); to amend
  the tax law, in relation to extending the clean  heating  fuel  credit
  for  three  years (Part R); to repeal subdivision (e) of section 23 of
  part U of chapter 61 of the laws of 2011 amending  the  real  property
  tax  law  and  other laws relating to establishing standards for elec-
  tronic tax administration (Part S); to amend  the  cooperative  corpo-
  rations  law  and  the  rural electric cooperative law, in relation to
  eliminating certain license fees (Part T); to amend the  tax  law,  in
  relation to a credit for the rehabilitation of historic properties for
  state owned property leased to private entities (Part U); to amend the
  tax  law,  in  relation  to  exempting  from sales and use tax certain
  tangible personal property or services (Part V); to amend  the  mental
  hygiene  law and the tax law, in relation to the creation and adminis-
  tration of a tax credit for  employment  of  eligible  individuals  in
  recovery  from a substance use disorder (Part W); to amend the tax law
  and the administrative code of the city of New York,  in  relation  to
  excluding  from entire net income certain contributions to the capital
  of a corporation (Part X); to amend the tax law, in relation to estab-
  lishing a conditional tax on carried interest (Part Y); to  amend  the
  tax  law, the administrative code of the city of New York, and chapter
  369 of the laws of 2018 amending the tax  law  relating  to  unrelated
  business taxable income of a taxpayer, in relation to making technical
  corrections  thereto  (Part Z); to amend the real property tax law, in
  relation to tax exemptions for energy systems (Part AA); to amend  the
  racing,  pari-mutuel wagering and breeding law, in relation to employ-
  ees of the state gaming commission (Part BB);  to  amend  the  racing,
  pari-mutuel wagering and breeding law, in relation to the thoroughbred
  and  standardbred breeding funds (Part CC); to amend the racing, pari-
  mutuel wagering and breeding law, in relation to  the  office  of  the
  gaming  inspector  general; and to repeal title 9 of article 13 of the
  racing, pari-mutuel wagering and breeding law relating to  the  gaming
  inspector general (Subpart A); to amend the racing, pari-mutuel wager-

S. 1509                             3                            A. 2009

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

S. 1509                             4                            A. 2009

  for both tobacco products and electronic cigarettes;  prohibiting  the
  display of tobacco products or electronic cigarettes in stores; clari-
  fying  that  the  department of health has the authority to promulgate
  regulations that restrict the sale or distribution of electronic ciga-
  rettes  or  electronic  liquids that have a characterizing flavor, and
  the use of  names  for  characterizing  flavors;  prohibiting  smoking
  inside and on the grounds of all hospitals licensed or operated by the
  office  of mental health; taxing electronic liquid; and requiring that
  electronic cigarettes be sold only  through  licensed  vapor  products
  retailers; to amend the general business law, in relation to the pack-
  aging of vapor products; to amend the tax law, in relation to imposing
  a  supplemental tax on vapor products; to amend the state finance law,
  in relation to adding revenues from  the  supplemental  tax  on  vapor
  products  to  the  health care reform act resource fund; and repealing
  paragraph (e) of subdivison 1 of section 1399-cc of the public  health
  law  relating  to  the  definitions of nicotine, electronic liquid and
  e-liquid (Part UU); relating to constituting a new chapter 7-A of  the
  consolidated  laws,  in  relation  to  the creation of a new office of
  cannabis management, as an independent entity within the  division  of
  alcoholic  beverage  control,  providing  for the licensure of persons
  authorized to cultivate, process, distribute and sell cannabis and the
  use of cannabis by persons aged twenty-one  or  older;  to  amend  the
  public  health  law,  in  relation  to the description of cannabis; to
  amend the vehicle and traffic law, in  relation  to  making  technical
  changes  regarding the definition of cannabis; to amend the penal law,
  in relation to the qualification of certain offenses involving  canna-
  bis  and  to  exempt  certain  persons  from  prosecution for the use,
  consumption, display, production or distribution of cannabis; to amend
  the tax law, in relation to providing for the levying taxes on  canna-
  bis;  to  amend the criminal procedure law, the civil practice law and
  rules, the general business law, the state finance law, the  executive
  law,  the  penal  law  and the vehicle and traffic law, in relation to
  making conforming changes; to repeal sections 221.10 and 221.30 of the
  penal law relating to the criminal possession and sale of cannabis; to
  amend chapter 90 of the laws of 2014 amending the public  health  law,
  the  tax  law,  the  state  finance law, the general business law, the
  penal law and the criminal procedure law relating to  medical  use  of
  marihuana,  in  relation to the effectiveness thereof; to repeal para-
  graph (f) of subdivision 2 of section 850 of the general business  law
  relating  to  drug  related paraphernalia; and making an appropriation
  therefor (Part VV); and to amend the tax law, in relation to  imposing
  a  special  tax  on  passenger car rentals outside of the metropolitan
  commuter transportation district (Part WW)

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  This  act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2019-2020
state fiscal year. Each component is  wholly  contained  within  a  Part
identified as Parts A through WW. The effective date for each particular
provision contained within such Part is set forth in the last section of
such  Part.    Any  provision  in  any  section contained within a Part,
including the effective date of the Part, which  makes  reference  to  a
section  "of  this  act",  when  used in connection with that particular

S. 1509                             5                            A. 2009

component, shall be deemed  to  mean  and  refer  to  the  corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.

                                 PART A

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

S. 1509                             6                            A. 2009

  (e)  sections twenty-one and twenty-one-a of this act shall expire and
be deemed repealed December 31, 2019].
  § 6. This act shall take effect immediately.

                                 PART B

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

                                 PART C

  Section 1. Section 210-A of the tax law is amended  by  adding  a  new
subdivision 5-a to read as follows:
  5-A.  NET  GLOBAL  INTANGIBLE  LOW-TAXED INCOME.   NOTWITHSTANDING ANY
OTHER PROVISION OF THIS SECTION, NET GLOBAL INTANGIBLE LOW-TAXED  INCOME
SHALL  BE  INCLUDED  IN  THE  APPORTIONMENT FRACTION AS PROVIDED IN THIS
SUBDIVISION.  RECEIPTS  CONSTITUTING  NET  GLOBAL  INTANGIBLE  LOW-TAXED
INCOME SHALL NOT BE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRAC-
TION. RECEIPTS CONSTITUTING NET GLOBAL INTANGIBLE LOW-TAXED INCOME SHALL
BE  INCLUDED  IN  THE  DENOMINATOR  OF  THE  APPORTIONMENT FRACTION. FOR
PURPOSES OF THIS SUBDIVISION, THE TERM "NET GLOBAL INTANGIBLE  LOW-TAXED
INCOME"  MEANS  THE  AMOUNT  REQUIRED  TO  BE INCLUDED IN THE TAXPAYER'S
FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A  OF  THE

S. 1509                             7                            A. 2009

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

                                 PART D

  Section  1.  Subparagraph  (vi)  of  paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 11 of part T of  chap-
ter 59 of the laws of 2015, is amended to read as follows:
  (vi)  for taxable years beginning on or after January first, two thou-
sand fourteen, the amount prescribed by this paragraph  for  a  taxpayer
[which]  THAT is a qualified New York manufacturer, shall be computed at
the rate of zero percent of the taxpayer's  business  income  base.  The
term  "manufacturer" shall mean a taxpayer [which] THAT during the taxa-
ble year is principally engaged in the production of goods  by  manufac-
turing,  processing,  assembling, refining, mining, extracting, farming,
agriculture, horticulture, floriculture, viticulture or commercial fish-
ing. However,  the  generation  and  distribution  of  electricity,  the
distribution of natural gas, and the production of steam associated with
the  generation  of electricity shall not be qualifying activities for a
manufacturer under  this  subparagraph.  Moreover,  in  the  case  of  a
combined report, the combined group shall be considered a "manufacturer"
for  purposes of this subparagraph only if the combined group during the
taxable year is principally engaged in the activities set forth in  this
paragraph,  or  any combination thereof. A taxpayer or, in the case of a
combined report, a combined group  shall  be  "principally  engaged"  in
activities  described above if, during the taxable year, more than fifty
percent of the gross receipts of the taxpayer or combined group, respec-
tively, are derived from receipts from the sale  of  goods  produced  by
such  activities. In computing a combined group's gross receipts, inter-
corporate receipts shall be eliminated. A "qualified New  York  manufac-
turer"  is  a manufacturer [which] THAT has property in New York [which]
THAT is described in clause (A) of subparagraph (i) of paragraph (b)  of
subdivision  one of section two hundred ten-B of this article and either
(I) the adjusted basis of such property for [federal  income]  NEW  YORK
STATE  tax  purposes  at  the  close of the taxable year is at least one
million dollars or (II) all of its real and personal property is located
in New York. A taxpayer or, in the case of a combined report, a combined
group, that does not satisfy the principally engaged test may be a qual-
ified New York manufacturer  if  the  taxpayer  or  the  combined  group
employs  during  the  taxable  year  at  least two thousand five hundred
employees in manufacturing in New York and the taxpayer or the  combined

S. 1509                             8                            A. 2009

group  has  property  in  the  state used in manufacturing, the adjusted
basis of which for [federal income] NEW YORK STATE tax purposes  at  the
close of the taxable year is at least one hundred million dollars.
  §  2.  Subparagraph 2 of paragraph (b) of subdivision 1 of section 210
of the tax law, as amended by section 18 of part T of chapter 59 of  the
laws of 2015, is amended to read as follows:
  (2)  For  purposes  of  subparagraph  one  of this paragraph, the term
"manufacturer" shall mean a taxpayer [which]  THAT  during  the  taxable
year is principally engaged in the production of goods by manufacturing,
processing,  assembling, refining, mining, extracting, farming, agricul-
ture, horticulture, floriculture,  viticulture  or  commercial  fishing.
Moreover,  for  purposes  of  computing  the  capital base in a combined
report, the combined group shall  be  considered  a  "manufacturer"  for
purposes  of  this  subparagraph  only  if the combined group during the
taxable year is principally engaged in the activities set forth in  this
subparagraph,  or any combination thereof. A taxpayer or, in the case of
a combined report, a combined group shall be  "principally  engaged"  in
activities  described above if, during the taxable year, more than fifty
percent of the gross receipts of the taxpayer or combined group, respec-
tively, are derived from receipts from the sale  of  goods  produced  by
such  activities. In computing a combined group's gross receipts, inter-
corporate receipts shall be eliminated. A "qualified New  York  manufac-
turer" is a manufacturer that has property in New York that is described
in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of
section  two  hundred  ten-B of this article and either (i) the adjusted
basis of that property for [federal income] NEW YORK STATE tax  purposes
at the close of the taxable year is at least one million dollars or (ii)
all  of  its real and personal property is located in New York. In addi-
tion, a "qualified New York  manufacturer"  means  a  taxpayer  that  is
defined  as  a qualified emerging technology company under paragraph (c)
of subdivision one of section thirty-one hundred  two-e  of  the  public
authorities   law  regardless  of  the  ten  million  dollar  limitation
expressed in subparagraph one of such paragraph. A taxpayer or,  in  the
case  of  a combined report, a combined group, that does not satisfy the
principally engaged test may be a qualified New York manufacturer if the
taxpayer or the combined group employs during the taxable year at  least
two thousand five hundred employees in manufacturing in New York and the
taxpayer  or  the combined group has property in the state used in manu-
facturing, the adjusted basis of which for  [federal  income]  NEW  YORK
STATE  tax  purposes  at  the  close of the taxable year is at least one
hundred million dollars.
  § 3. Clause (ii) of subparagraph 4 of paragraph (k) of  subdivision  1
of section 11-654 of the administrative code of the city of New York, as
added  by  section  1  of  part  D of chapter 60 of the laws of 2015, is
amended to read as follows:
  (ii) A "qualified New York manufacturing corporation" is a manufactur-
ing corporation that has property in the state [which] THAT is described
in subparagraph five of this paragraph and either (A) the adjusted basis
of such property for [federal income] NEW YORK STATE tax purposes at the
close of the taxable year is at least one million dollars  or  (B)  more
than  fifty  [percentum]  PERCENT  of  its real and personal property is
located in the state.
  § 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.

                                 PART E

S. 1509                             9                            A. 2009

  Section 1. Section 5 of part MM of chapter 59  of  the  laws  of  2014
amending  the  labor law and the tax law relating to the creation of the
workers with disabilities tax credit  program  is  amended  to  read  as
follows:
  §  5.  This  act shall take effect January 1, 2015, and shall apply to
taxable years beginning on and after that date; provided, however,  that
this act shall expire and be deemed repealed January 1, [2020] 2023.
  § 2. This act shall take effect immediately.

                                 PART F

  Section  1.  Paragraph  3  of subsection (a) of section 954 of the tax
law, as amended by section 2 of part BB of chapter 59  of  the  laws  of
2015, is amended to read as follows:
  (3)  Increased by the amount of any taxable gift under section 2503 of
the internal revenue code  not  otherwise  included  in  the  decedent's
federal  gross  estate,  made during the three year period ending on the
decedent's date of death, but not including any gift made: (A) when  the
decedent  was  not  a  resident  of  New York state; or (B) before April
first, two thousand fourteen; or (C) that is real or  tangible  personal
property  having  an actual situs outside New York state at the time the
gift was made. Provided, however that this paragraph shall not apply  to
the  estate  of  a [decendent] DECEDENT dying on or after January first,
two thousand [nineteen] TWENTY-SIX.
  § 2. Subsection (a) of section 954 of the tax law is amended by adding
a new paragraph 4 to read as follows:
  (4) INCREASED BY THE VALUE  OF  ANY  PROPERTY  NOT  OTHERWISE  ALREADY
INCLUDED  IN  THE  DECEDENT'S FEDERAL GROSS ESTATE IN WHICH THE DECEDENT
HAD A QUALIFYING INCOME INTEREST FOR LIFE IF A DEDUCTION WAS ALLOWED  ON
THE RETURN OF THE TAX IMPOSED BY THIS ARTICLE WITH RESPECT TO THE TRANS-
FER  OF  SUCH  PROPERTY  TO THE DECEDENT BY REASON OF THE APPLICATION OF
PARAGRAPH (7) OF SUBSECTION (B) OF SECTION 2056 OF THE INTERNAL  REVENUE
CODE,  AS  MADE APPLICABLE TO THE TAX IMPOSED BY THIS ARTICLE BY SECTION
NINE HUNDRED NINETY-NINE-A OF THIS ARTICLE, WHETHER  OR  NOT  A  FEDERAL
ESTATE  TAX  RETURN WAS REQUIRED TO BE FILED BY THE ESTATE OF THE TRANS-
FERRING SPOUSE.
  § 3. Subsection (c) of section 955 of the tax law, as added by section
4 of part X of chapter 59 of the laws of 2014, is  amended  to  read  as
follows:
  (c)  Qualified  terminable  interest  property  election.--  Except as
otherwise provided in this subsection, the election referred to in para-
graph (7) of subsection (b) of section 2056 of the internal revenue code
shall not be allowed under this article unless such  election  was  made
with respect to the federal estate tax return required to be filed under
the  provisions  of the internal revenue code. If such election was made
for the purposes of the federal estate tax, then such election must also
be made by the executor on the return of the tax imposed by  this  arti-
cle.  Where  no  federal  estate tax return is required to be filed, the
executor [may] MUST make the election referred to in such paragraph  (7)
with respect to the tax imposed by this article on the return of the tax
imposed  by  this article. Any election made under this subsection shall
be irrevocable.
  § 4. This act shall take effect  immediately;  provided  however  that
section  one of this act shall apply to estates of decedents dying on or
after January 1, 2019 and sections two and three of this act shall apply
to estates of decedents dying on or after April 1, 2019.

S. 1509                            10                            A. 2009

                                 PART G

  Section  1.  Section  1101  of  the tax law is amended by adding a new
subdivision (e) to read as follows:
  (E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF  THE  TAXES  IMPOSED
UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND
BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL
MEAN:
  (1)  MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH
A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY
SUCH MARKETPLACE SELLER OR SELLERS. A  PERSON  "FACILITATES  A  SALE  OF
TANGIBLE  PERSONAL  PROPERTY"  FOR  PURPOSES  OF THIS PARAGRAPH WHEN THE
PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON  PROVIDES
THE  FORUM  IN  WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE
OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN  INTER-
NET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFIL-
IATE  OF  SUCH  PERSON  COLLECTS  THE  RECEIPTS  PAID BY A CUSTOMER TO A
MARKETPLACE  SELLER  FOR  A  SALE  OF  TANGIBLE  PERSONAL  PROPERTY,  OR
CONTRACTS  WITH  A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR PURPOSES OF
THIS PARAGRAPH, A "SALE OF TANGIBLE PERSONAL PROPERTY" SHALL NOT INCLUDE
THE RENTAL OF A PASSENGER CAR AS DESCRIBED  IN  SECTION  ELEVEN  HUNDRED
SIXTY OF THIS CHAPTER BUT SHALL INCLUDE A LEASE DESCRIBED IN SUBDIVISION
(I)  OF  SECTION  ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. FOR PURPOSES OF
THIS PARAGRAPH, PERSONS ARE AFFILIATED IF ONE PERSON  HAS  AN  OWNERSHIP
INTEREST  OF  MORE  THAN  FIVE  PERCENT,  WHETHER DIRECT OR INDIRECT, IN
ANOTHER, OR WHERE AN OWNERSHIP  INTEREST  OF  MORE  THAN  FIVE  PERCENT,
WHETHER  DIRECT  OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER
PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED  PERSONS  WITH
RESPECT TO EACH OTHER.
  (2)  MARKETPLACE  SELLER.  ANY  PERSON,  WHETHER OR NOT SUCH PERSON IS
REQUIRED TO OBTAIN A  CERTIFICATE  OF  AUTHORITY  UNDER  SECTION  ELEVEN
HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET-
PLACE  PROVIDER  UNDER  WHICH  THE  MARKETPLACE PROVIDER WILL FACILITATE
SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF
PARAGRAPH ONE OF THIS SUBDIVISION.
  § 2. Subdivision 1 of section 1131 of  the  tax  law,  as  amended  by
section  1  of  part  X of chapter 59 of the laws of 2018, is amended to
read as follows:
  (1) "Persons required to collect tax" or "person required  to  collect
any tax imposed by this article" shall include: every vendor of tangible
personal  property  or  services;  every recipient of amusement charges;
[and] every operator of a hotel; AND  EVERY  MARKETPLACE  PROVIDER  WITH
RESPECT  TO  SALES  OF  TANGIBLE  PERSONAL  PROPERTY  IT  FACILITATES AS
DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN  HUNDRED
ONE OF THIS ARTICLE. Said terms shall also include any officer, director
or employee of a corporation or of a dissolved corporation, any employee
of  a partnership, any employee or manager of a limited liability compa-
ny, or any employee of an individual proprietorship who as such officer,
director, employee or manager is under a duty to  act  for  such  corpo-
ration, partnership, limited liability company or individual proprietor-
ship in complying with any requirement of this article, or has so acted;
and  any member of a partnership or limited liability company. Provided,
however, that any person who is a vendor solely by reason of clause  (D)
or  (E)  of  subparagraph  (i)  of  paragraph  (8) of subdivision (b) of
section eleven hundred one of  this  article  shall  not  be  a  "person
required  to  collect any tax imposed by this article" until twenty days

S. 1509                            11                            A. 2009

after the date by which such person is required to file a certificate of
registration pursuant to section  eleven  hundred  thirty-four  of  this
part.
  §  3.  Section 1132 of the tax law is amended by adding a new subdivi-
sion (l) to read as follows:
  (L)(1) A MARKETPLACE PROVIDER WITH  RESPECT  TO  A  SALE  OF  TANGIBLE
PERSONAL PROPERTY IT FACILITATES: (A) SHALL HAVE ALL THE OBLIGATIONS AND
RIGHTS  OF  A  VENDOR UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS
CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSUANT  THERETO,  INCLUDING,
BUT  NOT  LIMITED  TO, THE DUTY TO OBTAIN A CERTIFICATE OF AUTHORITY, TO
COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A  CERTIF-
ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION
OR  EXCLUSION  FROM  TAX,  THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY
SUBDIVISION (E) OF THIS SECTION AND THE CREDIT  ALLOWED  BY  SUBDIVISION
(F)  OF  SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE
PROVISIONS OF SUCH SUBDIVISIONS; AND (B) SHALL  KEEP  SUCH  RECORDS  AND
INFORMATION  AND  COOPERATE  WITH  THE COMMISSIONER TO ENSURE THE PROPER
COLLECTION AND REMITTANCE OF TAX IMPOSED, COLLECTED OR  REQUIRED  TO  BE
COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
  (2)  A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY TO
COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED  FIVE  OF
THIS  ARTICLE  AND  SHALL NOT INCLUDE THE RECEIPTS FROM SUCH SALE IN ITS
TAXABLE RECEIPTS FOR PURPOSES OF SECTION ELEVEN  HUNDRED  THIRTY-SIX  OF
THIS  PART  IF,  IN  REGARD TO SUCH SALE: (A) THE MARKETPLACE SELLER CAN
SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM  WHOM
SUCH  SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE
OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING  THAT
THE  MARKETPLACE  PROVIDER  IS  REGISTERED TO COLLECT SALES TAX AND WILL
COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY  BY
THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH
SUCH  OTHER  INFORMATION  AS THE COMMISSIONER MAY PRESCRIBE; AND (B) ANY
FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF  TAX
IN  REGARD  TO  SUCH  SALE WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER
PROVIDING THE MARKETPLACE  PROVIDER  WITH  INCORRECT  INFORMATION.  THIS
PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH
(I)  OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIF-
ICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR  PURPOSES
OF  SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH
CERTIFICATE OF COLLECTION AND  THE  TIMING  OF  ITS  ACCEPTANCE  BY  THE
MARKETPLACE  SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF TANGIBLE
PERSONAL PROPERTY BY A MARKETPLACE SELLER  THAT  ARE  FACILITATED  BY  A
MARKETPLACE  PROVIDER  WHO  IS  AFFILIATED  WITH SUCH MARKETPLACE SELLER
WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN
HUNDRED ONE OF THIS ARTICLE, THE  MARKETPLACE  SELLER  SHALL  BE  DEEMED
LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR
PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS
PART.
  (3)  THE  COMMISSIONER  MAY,  IN  HIS OR HER DISCRETION: (A) DEVELOP A
STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED  BY  A  MARKETPLACE
PROVIDER,  IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT
THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR  WHOM  THE  MARKET-
PLACE  PROVIDER  FACILITATES  SALES  OF TANGIBLE PERSONAL PROPERTY, WITH
RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY
OCCURS IN THE STATE; AND (B) PROVIDE BY REGULATION OR OTHERWISE THAT THE
INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT  BETWEEN

S. 1509                            12                            A. 2009

THE  MARKETPLACE  PROVIDER  AND  MARKETPLACE  SELLER  WILL HAVE THE SAME
EFFECT  AS  A  MARKETPLACE  SELLER'S  ACCEPTANCE  OF  A  CERTIFICATE  OF
COLLECTION  FROM  SUCH  MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS
SUBDIVISION.
  §  4.  Section 1133 of the tax law is amended by adding a new subdivi-
sion (f) to read as follows:
  (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION
FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT  THE
MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR-
MATION  GIVEN  TO  THE  MARKETPLACE  PROVIDER BY THE MARKETPLACE SELLER.
PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF  THE  MARKETPLACE
SELLER  AND  MARKETPLACE  PROVIDER  ARE AFFILIATED WITHIN THE MEANING OF
PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE  OF  THIS
ARTICLE.
  § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
amended  by  section  46 of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
  (4) The return of a vendor of tangible personal property  or  services
shall  show  such vendor's receipts from sales and the number of gallons
of any motor fuel or diesel motor fuel sold and also the aggregate value
of tangible personal property and services and number of gallons of such
fuels sold by the vendor, the use of which is subject to tax under  this
article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
provisions of section eleven hundred  thirty-seven  of  this  part.  The
return  of  a recipient of amusement charges shall show all such charges
and the amount of tax thereon, and the return of an operator required to
collect tax on rents shall show all rents received or  charged  and  the
amount of tax thereon.  THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE
THE  RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
MARKETPLACE PROVIDER IF, IN REGARD TO SUCH  SALE:  (A)  THE  MARKETPLACE
SELLER  HAS  TIMELY  RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF-
ICATE OF COLLECTION FROM THE MARKETPLACE  PROVIDER  OR  THE  MARKETPLACE
PROVIDER  HAS  INCLUDED  A PROVISION APPROVED BY THE COMMISSIONER IN THE
PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE  PROVIDER  AND  THE
MARKETPLACE  SELLER  AS  DESCRIBED  IN SUBDIVISION ONE OF SECTION ELEVEN
HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE
MARKETPLACE SELLER TO  THE  MARKETPLACE  PROVIDER  ABOUT  SUCH  TANGIBLE
PERSONAL PROPERTY IS ACCURATE.
  §  6.  Section 1142 of the tax law is amended by adding a new subdivi-
sion 15 to read as follows:
  (15) TO PUBLISH A LIST ON  THE  DEPARTMENT'S  WEBSITE  OF  MARKETPLACE
PROVIDERS  WHOSE  CERTIFICATES  OF  AUTHORITY  HAVE BEEN REVOKED AND, IF
NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR  OTHER-
WISE  THAT  A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF THE
DUTY TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY  FACILITATED
BY  A  MARKETPLACE  PROVIDER  ONLY  IF,  IN  ADDITION  TO THE CONDITIONS
PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED
THIRTY-TWO OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS  NOT  ON
SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY.
  §  7.  This act shall take effect immediately and shall apply to sales
made on or after September 1, 2019.

                                 PART H

S. 1509                            13                            A. 2009

  Section 1. Subparagraph (A) of  paragraph  1  of  subdivision  (b)  of
section  1105 of the tax law, as amended by section 9 of part S of chap-
ter 85 of the laws of 2002, is amended to read as follows:
  (A)  gas,  electricity,  refrigeration  and  steam, and gas, electric,
refrigeration and steam service of whatever nature, INCLUDING THE TRANS-
PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY,  EVEN  IF
SOLD SEPARATELY;
  § 2. Section 1105-C of the tax law is REPEALED.
  §  3.  Subparagraph  (xi) of paragraph 4 of subdivision (a) of section
1210 of the tax law is REPEALED.
  § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis-
trative code of the city of New York is REPEALED.
  § 5. This act shall take effect June 1, 2019, and shall apply to sales
made and services rendered on and after that date, whether or not  under
a prior contract.

                                 PART I

  Section 1. Subdivision 3 of section 1204 of the real property tax law,
as  added  by  chapter  115  of  the laws of 2018, is amended to read as
follows:
  3. Where the tentative equalization rate is not within plus  or  minus
five  [percentage points] PERCENT of the locally stated level of assess-
ment, the assessor shall provide notice in writing to the local  govern-
ing body of any affected town, city, village, county and school district
of the difference between the locally stated level of assessment and the
tentative  equalization rate.  Such notice shall be made within ten days
of the receipt of the tentative equalization rate, or within ten days of
the filing of the tentative assessment roll,  whichever  is  later,  and
shall provide the difference in the indicated total full value estimates
of the locally stated level of assessment and the tentative equalization
rate  for the taxable property within each affected town, city, village,
county and school district, where applicable.
  § 2. The real property tax law is amended by adding a new section 1211
to read as follows:
  § 1211. CONFIRMATION BY COMMISSIONER OF THE LOCALLY  STATED  LEVEL  OF
ASSESSMENT.  NOTWITHSTANDING  THE  FOREGOING  PROVISIONS  OF THIS TITLE,
BEFORE THE COMMISSIONER DETERMINES A TENTATIVE EQUALIZATION RATE  FOR  A
CITY,  TOWN  OR  VILLAGE,  HE  OR  SHE SHALL EXAMINE THE ACCURACY OF THE
LOCALLY STATED LEVEL OF ASSESSMENT APPEARING ON THE TENTATIVE ASSESSMENT
ROLL. IF THE COMMISSIONER CONFIRMS THE LOCALLY STATED LEVEL  OF  ASSESS-
MENT,  THEN AS SOON THEREAFTER AS IS PRACTICABLE, HE OR SHE SHALL ESTAB-
LISH AND CERTIFY SUCH LOCALLY STATED LEVEL OF ASSESSMENT  AS  THE  FINAL
EQUALIZATION  RATE FOR SUCH CITY, TOWN OR VILLAGE IN THE MANNER PROVIDED
BY SECTIONS TWELVE HUNDRED TEN AND TWELVE HUNDRED TWELVE OF THIS  TITLE.
THE  PROVISIONS  OF SECTIONS TWELVE HUNDRED FOUR, TWELVE HUNDRED SIX AND
TWELVE HUNDRED EIGHT OF THIS TITLE SHALL NOT APPLY IN SUCH CASES, UNLESS
THE COMMISSIONER FINDS THAT THE FINAL ASSESSMENT ROLL DIFFERS  FROM  THE
TENTATIVE  ASSESSMENT  ROLL TO AN EXTENT THAT RENDERS THE LOCALLY STATED
LEVEL OF ASSESSMENT INACCURATE, AND RESCINDS THE FINAL EQUALIZATION RATE
ON THAT BASIS.
  § 3. Paragraph (d) of subdivision 1 of section 1314 of the real  prop-
erty  tax law, as amended by chapter 158 of the laws of 2002, is amended
to read as follows:
  (d) (I) Such district superintendent shall also determine what propor-
tion of any tax to be levied in such school district for school purposes

S. 1509                            14                            A. 2009

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

                                 PART J

  Section 1. This Part enacts into law major components  of  legislation
relating to the improvement of the administration of real property taxa-
tion  in accordance with the real property tax law and other laws relat-
ing thereto. Each component is wholly contained within a Subpart identi-
fied as Subparts A through F. The effective  date  for  each  particular
provision contained within such Subpart is set forth in the last section
of  such  Subpart.    Any  provision  in  any section contained within a
Subpart, including the effective date of  the  Subpart,  which  makes  a
reference  to a section "of this act", when used in connection with that
particular component, shall be deemed to mean and refer  to  the  corre-
sponding  section of the Subpart in which it is found.  Section three of
this Part sets forth the general effective date of this Part.

                                SUBPART A

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 497 to read as follows:
  §  497.  ASSESSMENT RELIEF IN STATE DISASTER EMERGENCIES. 1.  NOTWITH-
STANDING ANY PROVISION OF LAW TO THE CONTRARY, DURING A  STATE  DISASTER
EMERGENCY AS DEFINED BY SECTION TWENTY OF THE EXECUTIVE LAW, AN ELIGIBLE
MUNICIPALITY  MAY EXERCISE THE PROVISIONS OF THIS SECTION IF ITS GOVERN-
ING BODY, BY THE SIXTIETH DAY FOLLOWING THE DATE UPON WHICH THE GOVERNOR
DECLARES A STATE DISASTER EMERGENCY, PASSES A LOCAL LAW OR ORDINANCE, OR
IN THE CASE OF A SCHOOL DISTRICT A RESOLUTION, ADOPTING  THE  PROVISIONS
OF  THIS SECTION. AN ELIGIBLE MUNICIPALITY MAY PROVIDE ASSESSMENT RELIEF

S. 1509                            15                            A. 2009

FOR REAL PROPERTY THAT IS IMPACTED BY  THE  DISASTER  THAT  LED  TO  THE
DECLARATION  OF THE STATE DISASTER EMERGENCY, AND THAT IS LOCATED WITHIN
SUCH MUNICIPALITY, AS PROVIDED IN SUBPARAGRAPHS (I), (II), (III) OR (IV)
OF  PARAGRAPH  (A)  OF  SUBDIVISION  THREE  OF  THIS SECTION ONLY IF ITS
GOVERNING BODY SPECIFICALLY ELECTS TO DO SO AS PART OF SUCH  LOCAL  LAW,
ORDINANCE  OR  RESOLUTION.  A  COPY  OF ANY SUCH LOCAL LAW, ORDINANCE OR
RESOLUTION SHALL BE FILED WITH THE COMMISSIONER WITHIN  TEN  DAYS  AFTER
THE ADOPTION THEREOF.
  2.  DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  A. "ELIGIBLE COUNTY" SHALL MEAN A COUNTY, OTHER THAN A  COUNTY  WHOLLY
CONTAINED WITHIN A CITY, SPECIFICALLY REFERENCED WITHIN A DECLARATION BY
THE GOVERNOR OF A STATE DISASTER EMERGENCY.
  B.  "ELIGIBLE  MUNICIPALITY"  SHALL  MEAN  A MUNICIPAL CORPORATION, AS
DEFINED BY SUBDIVISION TEN OF SECTION ONE HUNDRED TWO OF  THIS  CHAPTER,
THAT  IS  EITHER: (I) AN ELIGIBLE COUNTY; OR (II) A CITY, TOWN, VILLAGE,
SPECIAL DISTRICT, OR SCHOOL DISTRICT THAT IS WHOLLY OR PARTLY  CONTAINED
WITHIN AN ELIGIBLE COUNTY.
  C.  "IMPACTED  TAX  ROLL"  SHALL  MEAN  THE FINAL ASSESSMENT ROLL THAT
SATISFIES BOTH OF THE FOLLOWING CONDITIONS: (A) THE ROLL IS BASED UPON A
TAXABLE STATUS DATE OCCURRING PRIOR TO A DISASTER THAT IS THE SUBJECT OF
A DECLARATION BY THE GOVERNOR OF A STATE  DISASTER  EMERGENCY;  AND  (B)
TAXES  LEVIED  UPON THAT ROLL BY OR ON BEHALF OF A PARTICIPATING MUNICI-
PALITY ARE PAYABLE WITHOUT INTEREST ON OR AFTER THE DATE OF  THE  DISAS-
TER.
  D.  "PARTICIPATING  MUNICIPALITY"  SHALL MEAN AN ELIGIBLE MUNICIPALITY
THAT HAS PASSED A LOCAL LAW, ORDINANCE, OR RESOLUTION TO PROVIDE ASSESS-
MENT RELIEF TO PROPERTY OWNERS WITHIN SUCH ELIGIBLE MUNICIPALITY  PURSU-
ANT TO THE PROVISIONS OF THIS SECTION.
  E.  "TOTAL  ASSESSED VALUE" SHALL MEAN THE TOTAL ASSESSED VALUE OF THE
PARCEL PRIOR TO ANY AND ALL EXEMPTION ADJUSTMENTS.
  F. "IMPROVED VALUE" SHALL MEAN THE MARKET VALUE OF THE  REAL  PROPERTY
IMPROVEMENTS EXCLUDING THE LAND.
  G.  "PROPERTY"  SHALL  MEAN  "REAL  PROPERTY", "PROPERTY" OR "LAND" AS
DEFINED UNDER PARAGRAPHS  (A)  THROUGH  (G)  OF  SUBDIVISION  TWELVE  OF
SECTION ONE HUNDRED TWO OF THIS CHAPTER.
  3.  ASSESSMENT RELIEF FOR DISASTER VICTIMS IN AN ELIGIBLE COUNTY.  (A)
NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE REAL PROPER-
TY IS IMPACTED BY A DISASTER THAT LED TO  THE  DECLARATION  OF  A  STATE
DISASTER  EMERGENCY, AND SUCH PROPERTY IS LOCATED WITHIN A PARTICIPATING
MUNICIPALITY, ASSESSMENT RELIEF SHALL BE GRANTED AS FOLLOWS:
  (I) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE  ASSESSMENT
RELIEF  FOR  REAL  PROPERTY THAT LOST AT LEAST TEN PERCENT BUT LESS THAN
TWENTY PERCENT OF ITS IMPROVED VALUE DUE TO  A  DISASTER,  THE  ASSESSED
VALUE  ATTRIBUTABLE  TO  THE  IMPROVEMENTS  SHALL  BE REDUCED BY FIFTEEN
PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON  THE  IMPACTED
TAX ROLL.
  (II) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT
RELIEF FOR REAL PROPERTY THAT LOST AT LEAST TWENTY PERCENT BUT LESS THAN
THIRTY  PERCENT  OF  ITS  IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED
VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED  BY  TWENTY-FIVE
PERCENT  FOR  PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED
TAX ROLL.
  (III) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO  PROVIDE  ASSESS-
MENT RELIEF FOR REAL PROPERTY THAT LOST AT LEAST THIRTY PERCENT BUT LESS
THAN FORTY PERCENT OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED

S. 1509                            16                            A. 2009

VALUE  ATTRIBUTABLE  TO THE IMPROVEMENTS SHALL BE REDUCED BY THIRTY-FIVE
PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON  THE  IMPACTED
TAX ROLL.
  (IV) IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESSMENT
RELIEF  FOR REAL PROPERTY THAT LOST AT LEAST FORTY PERCENT BUT LESS THAN
FIFTY PERCENT OF ITS IMPROVED VALUE DUE  TO  A  DISASTER,  THE  ASSESSED
VALUE  ATTRIBUTABLE  TO  THE IMPROVEMENTS SHALL BE REDUCED BY FORTY-FIVE
PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON  THE  IMPACTED
TAX ROLL.
  (V) IF THE PROPERTY LOST AT LEAST FIFTY BUT LESS THAN SIXTY PERCENT OF
ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO
THE  IMPROVEMENTS SHALL BE REDUCED BY FIFTY-FIVE PERCENT FOR PURPOSES OF
THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL.
  (VI) IF THE PROPERTY LOST AT LEAST SIXTY BUT LESS THAN SEVENTY PERCENT
OF ITS IMPROVED VALUE DUE TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE
TO THE IMPROVEMENTS SHALL BE REDUCED BY SIXTY-FIVE PERCENT FOR  PURPOSES
OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL.
  (VII)  IF  THE  PROPERTY  LOST  AT  LEAST SEVENTY BUT LESS THAN EIGHTY
PERCENT OF ITS IMPROVED VALUE DUE TO  A  DISASTER,  THE  ASSESSED  VALUE
ATTRIBUTABLE  TO  THE  IMPROVEMENTS  SHALL  BE  REDUCED  BY SEVENTY-FIVE
PERCENT FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON  THE  IMPACTED
TAX ROLL.
  (VIII)  IF  THE  PROPERTY  LOST  AT  LEAST EIGHTY BUT LESS THAN NINETY
PERCENT OF ITS IMPROVED VALUE DUE TO  A  DISASTER,  THE  ASSESSED  VALUE
ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY EIGHTY-FIVE PERCENT
FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL.
  (IX)  IF  THE  PROPERTY LOST AT LEAST NINETY BUT LESS THAN ONE HUNDRED
PERCENT OF ITS IMPROVED VALUE DUE TO  A  DISASTER,  THE  ASSESSED  VALUE
ATTRIBUTABLE TO THE IMPROVEMENTS SHALL BE REDUCED BY NINETY-FIVE PERCENT
FOR PURPOSES OF THE PARTICIPATING MUNICIPALITY ON THE IMPACTED TAX ROLL.
  (X) IF THE PROPERTY LOST ONE HUNDRED PERCENT OF ITS IMPROVED VALUE DUE
TO A DISASTER, THE ASSESSED VALUE ATTRIBUTABLE TO THE IMPROVEMENTS SHALL
BE  REDUCED  BY  ONE  HUNDRED  PERCENT FOR PURPOSES OF THE PARTICIPATING
MUNICIPALITY ON THE IMPACTED TAX ROLL.
  (XI) THE PERCENTAGE LOSS IN IMPROVED VALUE FOR THIS PURPOSE  SHALL  BE
ADOPTED  BY THE ASSESSOR FROM A WRITTEN FINDING OF THE FEDERAL EMERGENCY
MANAGEMENT AGENCY OR, WHERE NO SUCH FINDING EXISTS, SHALL BE  DETERMINED
BY  THE  ASSESSOR  IN  THE  MANNER  PROVIDED BY THIS SECTION, SUBJECT TO
REVIEW BY THE BOARD OF ASSESSMENT REVIEW.
  (XII) WHERE THE ASSESSED VALUE OF A PROPERTY IS  REDUCED  PURSUANT  TO
THIS  SECTION,  THE DIFFERENCE BETWEEN THE PROPERTY'S ASSESSED VALUE AND
ITS REDUCED ASSESSED VALUE SHALL BE EXEMPT FROM TAXATION.  NO  REDUCTION
IN  ASSESSED  VALUE  SHALL BE GRANTED PURSUANT TO THIS SECTION EXCEPT AS
SPECIFIED ABOVE FOR SUCH COUNTIES. NO REDUCTION IN ASSESSED VALUE  SHALL
BE  GRANTED  PURSUANT  TO THIS SECTION FOR PURPOSES OF ANY COUNTY, CITY,
TOWN, VILLAGE OR SCHOOL DISTRICT THAT HAS NOT ADOPTED THE PROVISIONS  OF
THIS SECTION.
  (B)  TO RECEIVE SUCH RELIEF PURSUANT TO THIS SECTION, A PROPERTY OWNER
IN A PARTICIPATING MUNICIPALITY SHALL SUBMIT A WRITTEN  REQUEST  TO  THE
ASSESSOR  ON  A  FORM  PRESCRIBED BY THE COMMISSIONER WITHIN ONE HUNDRED
TWENTY DAYS FOLLOWING THE DATE UPON WHICH THE STATE  DISASTER  EMERGENCY
WAS  DECLARED  BY THE GOVERNOR, PROVIDED, HOWEVER, THAT SUCH ONE HUNDRED
TWENTY DAY PERIOD MAY BE EXTENDED TO A TOTAL OF UP TO ONE HUNDRED EIGHTY
DAYS BY A LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED  BY  THE  GOVERNING
BODY  OF  THE ASSESSING UNIT. A COPY OF ANY SUCH LOCAL LAW, ORDINANCE OR
RESOLUTION SHALL BE FILED WITH  THE  COMMISSIONER.  SUCH  REQUEST  SHALL

S. 1509                            17                            A. 2009

ATTACH  ANY  AND  ALL DETERMINATIONS BY THE FEDERAL EMERGENCY MANAGEMENT
AGENCY, AND ANY AND ALL REPORTS BY AN INSURANCE ADJUSTER, SHALL DESCRIBE
IN REASONABLE DETAIL THE DAMAGE CAUSED TO THE PROPERTY BY  THE  DISASTER
AND  THE  CONDITION OF THE PROPERTY FOLLOWING THE DISASTER, AND SHALL BE
ACCOMPANIED BY SUPPORTING DOCUMENTATION, IF AVAILABLE.
  (C) UPON RECEIVING SUCH A REQUEST, THE ASSESSOR SHALL ADOPT THE  FIND-
ING  BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY OR, IF SUCH FINDING DOES
NOT EXIST, THE ASSESSOR SHALL MAKE A FINDING AS TO WHETHER THE  PROPERTY
LOST AT LEAST FIFTY PERCENT OF ITS IMPROVED VALUE OR, IF A PARTICIPATING
MUNICIPALITY  HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR REAL PROPERTY
THAT LOST A LESSER PERCENTAGE OF IMPROVED VALUE SUCH  LESSER  PERCENTAGE
OF  ITS  IMPROVED  VALUE,  AS A RESULT OF A DISASTER. THE ASSESSOR SHALL
THEREAFTER ADOPT OR CLASSIFY THE PERCENTAGE LOSS OF IMPROVED VALUE WITH-
IN ONE OF THE FOLLOWING RANGES:
  (I) AT LEAST TEN PERCENT BUT LESS THAN TWENTY PERCENT,  PROVIDED  THAT
THIS  RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY HAS
ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE,
  (II) AT LEAST TWENTY PERCENT BUT LESS THAN  THIRTY  PERCENT,  PROVIDED
THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY
HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE,
  (III)  AT  LEAST  THIRTY PERCENT BUT LESS THAN FORTY PERCENT, PROVIDED
THAT THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY
HAS ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE,
  (IV) AT LEAST FORTY PERCENT BUT LESS THAN FIFTY PERCENT, PROVIDED THAT
THIS RANGE SHALL ONLY BE APPLICABLE IF A PARTICIPATING MUNICIPALITY  HAS
ELECTED TO PROVIDE ASSESSMENT RELIEF FOR LOSSES WITHIN THIS RANGE,
  (V) AT LEAST FIFTY PERCENT BUT LESS THAN SIXTY PERCENT,
  (VI) AT LEAST SIXTY PERCENT BUT LESS THAN SEVENTY PERCENT,
  (VII) AT LEAST SEVENTY PERCENT BUT LESS THAN EIGHTY PERCENT,
  (VIII) AT LEAST EIGHTY PERCENT BUT LESS THAN NINETY PERCENT,
  (IX) AT LEAST NINETY PERCENT BUT LESS THAN ONE HUNDRED PERCENT, OR
  (X) ONE HUNDRED PERCENT.
  (D)  ON OR BEFORE THE THIRTIETH DAY AFTER THE LAST DATE FOR THE FILING
OF REQUESTS FOR RELIEF PURSUANT TO THIS SECTION, THE ASSESSOR SHALL MAIL
WRITTEN NOTICE OF SUCH FINDINGS TO THE PROPERTY OWNER AND  PARTICIPATING
MUNICIPALITY.  THE  NOTICE  SHALL INDICATE THAT IF THE PROPERTY OWNER IS
DISSATISFIED WITH THESE FINDINGS, HE OR SHE MAY FILE  A  COMPLAINT  WITH
THE  BOARD  OF  ASSESSMENT  REVIEW  UP  UNTIL THE DATE SPECIFIED IN SUCH
NOTICE, WHICH DATE SHALL BE THE TWENTY-FIRST DAY AFTER THE LAST DATE FOR
THE MAILING OF SUCH NOTICES. IF ANY COMPLAINTS ARE SO FILED, SUCH  BOARD
SHALL  RECONVENE  UPON TEN DAYS WRITTEN NOTICE TO THE PROPERTY OWNER AND
ASSESSOR TO HEAR AND DETERMINE THE COMPLAINT,  AND  SHALL  MAIL  WRITTEN
NOTICE  OF  ITS  DETERMINATION TO THE ASSESSOR AND PROPERTY OWNER WITHIN
FIFTEEN DAYS OF SUCH HEARING. THE PROVISIONS OF  ARTICLE  FIVE  OF  THIS
CHAPTER  SHALL  GOVERN THE REVIEW PROCESS TO THE EXTENT PRACTICABLE. FOR
THE PURPOSES OF THIS SECTION ONLY, THE APPLICANT  MAY  COMMENCE,  WITHIN
THIRTY  DAYS  OF  MAILING OF A WRITTEN DETERMINATION, A PROCEEDING UNDER
TITLE ONE OF ARTICLE SEVEN OF THIS  CHAPTER  OR,  IF  APPLICABLE,  UNDER
TITLE  ONE-A  OF  ARTICLE  SEVEN OF THIS CHAPTER. SECTIONS SEVEN HUNDRED
TWENTY-SEVEN AND SEVEN HUNDRED THIRTY-NINE OF  THIS  CHAPTER  SHALL  NOT
APPLY.
  (E)  WHERE  PROPERTY  HAS  LOST AT LEAST FIFTY PERCENT OF ITS IMPROVED
VALUE OR, IF A PARTICIPATING MUNICIPALITY HAS ELECTED TO PROVIDE ASSESS-
MENT RELIEF FOR REAL PROPERTY THAT LOST A LESSER PERCENTAGE OF  IMPROVED
VALUE  SUCH  LESSER  PERCENTAGE,  DUE  TO A DISASTER, THE ASSESSED VALUE
ATTRIBUTABLE TO THE IMPROVEMENTS ON THE PROPERTY ON THE IMPACTED ASSESS-

S. 1509                            18                            A. 2009

MENT ROLL SHALL BE REDUCED BY THE APPROPRIATE  PERCENTAGE  SPECIFIED  IN
PARAGRAPH (A) OF THIS SUBDIVISION, PROVIDED THAT ANY EXEMPTIONS THAT THE
PROPERTY  MAY BE RECEIVING SHALL BE ADJUSTED AS NECESSARY TO ACCOUNT FOR
SUCH  REDUCTION  IN  THE  TOTAL  ASSESSED VALUE. TO THE EXTENT THE TOTAL
ASSESSED VALUE OF THE PROPERTY ORIGINALLY APPEARING ON SUCH ROLL EXCEEDS
THE AMOUNT TO WHICH IT SHOULD BE REDUCED PURSUANT TO THIS  SECTION,  THE
EXCESS  SHALL  BE  CONSIDERED  AN  ERROR IN ESSENTIAL FACT AS DEFINED BY
SUBDIVISION THREE OF SECTION FIVE HUNDRED FIFTY  OF  THIS  CHAPTER.  THE
ASSESSOR  SHALL  THEREUPON  BE  AUTHORIZED  AND  DIRECTED TO CORRECT THE
ASSESSMENT ROLL ACCORDINGLY OR, IF ANOTHER PERSON HAS CUSTODY OR CONTROL
OF THE ASSESSMENT ROLL, TO DIRECT SUCH PERSON TO  MAKE  THE  APPROPRIATE
CORRECTIONS. IF THE CORRECTION IS MADE AFTER TAXES ARE LEVIED BUT BEFORE
SUCH  TAXES  ARE  PAID,  THE  COLLECTING OFFICER SHALL BE AUTHORIZED AND
DIRECTED TO  CORRECT  THE  APPLICANT'S  TAX  BILL  ACCORDINGLY.  IF  THE
CORRECTION IS MADE AFTER TAXES ARE PAID, THE AUTHORITIES OF EACH PARTIC-
IPATING  MUNICIPAL CORPORATION SHALL BE AUTHORIZED AND DIRECTED TO ISSUE
A REFUND IN THE AMOUNT OF THE EXCESS TAXES  PAID  WITH  REGARD  TO  SUCH
PARTICIPATING MUNICIPAL CORPORATION.
  (F)  THE RIGHTS CONTAINED IN THIS SECTION SHALL NOT OTHERWISE DIMINISH
ANY OTHER LEGALLY AVAILABLE RIGHT OF ANY PROPERTY OWNER OR PARTY WHO MAY
OTHERWISE LAWFULLY CHALLENGE THE VALUATION OR  ASSESSMENT  OF  ANY  REAL
PROPERTY  OR  IMPROVEMENTS THEREON.   ALL REMAINING RIGHTS HEREBY REMAIN
AND SHALL BE AVAILABLE TO THE PARTY TO WHOM SUCH RIGHTS WOULD  OTHERWISE
BE AVAILABLE NOTWITHSTANDING THIS SECTION.
  4. SCHOOL DISTRICTS HELD HARMLESS. EACH SCHOOL DISTRICT THAT IS WHOLLY
OR  PARTIALLY CONTAINED WITHIN AN ELIGIBLE COUNTY SHALL BE HELD HARMLESS
BY THE STATE FOR ANY REDUCTION IN STATE AID THAT WOULD HAVE BEEN PAID AS
TAX SAVINGS PURSUANT TO SECTION THIRTEEN HUNDRED SIX-A OF  THIS  CHAPTER
INCURRED DUE TO THE PROVISIONS OF THIS SECTION.
  5. BONDS AUTHORIZED. SERIAL BONDS AND, IN ADVANCE OF SUCH, BOND ANTIC-
IPATION  NOTES  ARE  HEREBY  AUTHORIZED  PURSUANT TO SUBDIVISION THIRTY-
THREE-E OF PARAGRAPH A OF  SECTION  11.00  OF  THE  LOCAL  FINANCE  LAW,
PROVIDED,  HOWEVER,  THAT  ANY FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT
FUNDING RECEIVED BY SUCH PARTICIPATING MUNICIPALITY, IN RELATION TO LOSS
OF PROPERTY TAX FUNDING, SHALL FIRST BE USED TO DEFEASE, UPON  MATURITY,
THE INTEREST AND PRINCIPAL OF ANY SUCH BOND OR NOTE SO OUTSTANDING.
  §  2. Paragraph a of section 11.00 of the local finance law is amended
by adding a new subdivision 33-e to read as follows:
  33-E. REAL PROPERTY TAX REFUNDS AND CREDITS. PAYMENTS  OF  EXEMPTIONS,
REFUNDS,  OR CREDITS FOR REAL PROPERTY TAX, SEWER AND WATER RENTS, RATES
AND CHARGES AND ALL OTHER REAL PROPERTY TAXES TO BE MADE  BY  A  MUNICI-
PALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION AS A RESULT OF PROVIDING
ASSESSMENT RELIEF IN A STATE DISASTER EMERGENCY PURSUANT TO SECTION FOUR
HUNDRED NINETY-SEVEN OF THE REAL PROPERTY TAX LAW, TEN YEARS.
  § 3. This act shall take effect immediately.

                                SUBPART B

  Section  1.  Paragraph (b) of subdivision 1 of section 523 of the real
property tax law, as amended by chapter 223 of  the  laws  of  1987,  is
amended to read as follows:
  (b)  The  board  of  assessment  review shall consist of not less than
three nor more than five members appointed by the  legislative  body  of
the  local  government  or village OR AS PROVIDED BY SUBDIVISION FIVE OF
SECTION FIFTEEN HUNDRED THIRTY-SEVEN OF  THIS  CHAPTER,  IF  APPLICABLE.
Members  shall  have a knowledge of property values in the local govern-

S. 1509                            19                            A. 2009

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

                                SUBPART C

  Section  1. Subdivision 4 of section 318 of the real property tax law,
as amended by chapter 527 of the laws of 1997 and as further amended  by
subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
2010, is amended to read as follows:

S. 1509                            20                            A. 2009

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

                                SUBPART D

  Section 1. Section 104 of the real  property  tax  law,  as  added  by
section  1  of  part  U of chapter 61 of the laws of 2011, is amended to
read as follows:
  § 104. Electronic real property tax administration. 1. Notwithstanding
any provision of law to the contrary, the commissioner is hereby author-
ized to establish standards for electronic real  property  tax  adminis-
tration (E-RPT). Such standards shall set forth the terms and conditions
under which the various tasks associated with real property tax adminis-
tration  may  be  executed  electronically, dispensing with the need for
paper documents. Such tasks shall include ANY OR ALL OF THE FOLLOWING:
  (a) The filing of exemption applications;
  (b) The filing of petitions for administrative review of assessments;

S. 1509                            21                            A. 2009

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

S. 1509                            22                            A. 2009

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

                                SUBPART E

  Section 1. Subdivision 4 of section 302 of the real property tax  law,
as  amended  by  chapter  348 of the laws of 2007, is amended to read as
follows:
  4. The taxable status of a special franchise shall  be  determined  on
the  basis  of its value and its ownership as of the first day of [July]
JANUARY of the year preceding the year in which the assessment  roll  on
which  such  property  is  to  be assessed is completed and filed in the
office of the city or town clerk, except that  taxable  status  of  such
properties shall be determined on the basis of ownership as of the first
day  of [July] JANUARY of the second year preceding the date required by
law for the filing of the final assessment  roll  for  purposes  of  all
village assessment rolls.
  §  2.  Subdivision  2  of section 606 of the real property tax law, as
amended by chapter 743 of the laws of 2005 and  as  further  amended  by

S. 1509                            23                            A. 2009

subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
2010, is amended to read as follows:
  2. In any assessing unit which has completed a revaluation since nine-
teen  hundred  fifty-three  or  which does not contain property that was
assessed in nineteen hundred fifty-three, the commissioner shall  deter-
mine  the full value of such special franchise as of the [valuation date
of the assessing unit] TAXABLE STATUS DATE SPECIFIED BY SUBDIVISION FOUR
OF SECTION THREE HUNDRED TWO OF THIS CHAPTER. Such full value  shall  be
determined  by  the  commissioner  for  purposes of sections six hundred
eight, six hundred fourteen and six hundred  sixteen  of  this  article.
These  full  values shall be entered on the assessment roll at the level
of assessment, which shall  be  the  uniform  percentage  of  value,  as
required  by  section five hundred two of this chapter, appearing on the
tentative assessment roll upon which the assessment is entered. Whenever
a final state equalization rate, or, in the case of a special  assessing
unit, a class equalization rate, is established that is different from a
level of assessment applied pursuant to this paragraph, any public offi-
cial  having  custody  of  that assessment roll is hereby authorized and
directed to recompute these assessments  to  reflect  that  equalization
rate,  provided  such  final  rate is established by the commissioner at
least ten days prior to the date for levy of taxes against those assess-
ments.
  § 3. This act shall take effect January 1, 2020.

                                SUBPART F

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 575-a to read as follows:
  §  575-A. ELECTRIC GENERATING FACILITY ANNUAL REPORTS. 1. EVERY CORPO-
RATION, COMPANY, ASSOCIATION, JOINT STOCK ASSOCIATION,  PARTNERSHIP  AND
PERSON,  THEIR  LESSEES,  TRUSTEES  OR  RECEIVERS APPOINTED BY ANY COURT
WHATSOEVER, OWNING, OPERATING OR MANAGING ANY ELECTRIC GENERATING FACIL-
ITY IN THE STATE SHALL ANNUALLY FILE WITH  THE  COMMISSIONER,  BY  APRIL
THIRTIETH, A REPORT SHOWING THE INVENTORY, REVENUE, AND EXPENSES ASSOCI-
ATED  THEREWITH FOR THE MOST RECENT FISCAL YEAR. SUCH REPORT SHALL BE IN
THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER.
  2. WHEN USED IN THIS SECTION,  "ELECTRIC  GENERATING  FACILITY"  SHALL
MEAN ANY FACILITY THAT GENERATES ELECTRICITY FOR SALE, DIRECTLY OR INDI-
RECTLY,  TO  THE  PUBLIC,  INCLUDING THE LAND UPON WHICH THE FACILITY IS
LOCATED, ANY EQUIPMENT USED IN SUCH GENERATION,  AND  EQUIPMENT  LEADING
FROM  THE FACILITY TO THE INTERCONNECTION WITH THE ELECTRIC TRANSMISSION
SYSTEM, BUT SHALL NOT INCLUDE:
  (A) ANY EQUIPMENT IN THE ELECTRIC TRANSMISSION SYSTEM; AND
  (B) ANY ELECTRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A  RESIDEN-
TIAL  CUSTOMER  OF  AN  ELECTRIC GENERATING FACILITY, INCLUDING THE LAND
UPON WHICH THE EQUIPMENT IS LOCATED, WHEN LOCATED AND USED AT HIS OR HER
RESIDENCE.
  3. EVERY ELECTRIC GENERATING  FACILITY  OWNER,  OPERATOR,  OR  MANAGER
FAILING  TO MAKE THE REPORT REQUIRED BY THIS SECTION, OR FAILING TO MAKE
ANY REPORT REQUIRED BY THE COMMISSIONER PURSUANT TO THIS SECTION  WITHIN
THE  TIME  SPECIFIED BY IT, SHALL FORFEIT TO THE PEOPLE OF THE STATE THE
SUM OF TEN THOUSAND DOLLARS FOR EVERY SUCH FAILURE  AND  THE  ADDITIONAL
SUM OF ONE THOUSAND DOLLARS FOR EACH DAY THAT SUCH FAILURE CONTINUES.
  § 2. This act shall take effect January 1, 2020.
  § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or subpart of this act shall be adjudged by any court of

S. 1509                            24                            A. 2009

competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or  subpart  thereof  directly involved in the controversy in which such
judgment shall have been rendered. It  is  hereby  declared  to  be  the
intent  of the legislature that this act would have been enacted even if
such invalid provisions had not been included herein.
  § 3. This act shall take effect immediately  provided,  however,  that
the applicable effective date of Subparts A through F of this Part shall
be as specifically set forth in the last section of such Subparts.

                                 PART K

  Section  1.  Section  3-d  of  the  general municipal law, as added by
section 2 of part E of chapter 59 of the laws of 2018, is REPEALED.
  § 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 12, 2018.

                                 PART L

  Section  1.  The tax law is amended by adding a new section 44 to read
as follows:
  § 44. EMPLOYER-PROVIDED CHILD CARE CREDIT.  (A)  GENERAL.  A  TAXPAYER
SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS
CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN AMOUNT EQUAL TO
THE  PORTION OF THE CREDIT THAT IS ALLOWED TO THE TAXPAYER UNDER SECTION
45F OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE TO  (I)  QUALIFIED
CHILD  CARE  EXPENDITURES  PAID  OR INCURRED WITH RESPECT TO A QUALIFIED
CHILD CARE FACILITY WITH A SITUS IN THE STATE,  AND  TO  (II)  QUALIFIED
CHILD  CARE  RESOURCE  AND  REFERRAL  EXPENDITURES PAID OR INCURRED WITH
RESPECT TO THE TAXPAYER'S EMPLOYEES WORKING IN  THE  STATE.  THE  CREDIT
ALLOWABLE  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT EXCEED
ONE HUNDRED FIFTY THOUSAND DOLLARS. IF THE ENTITY OPERATING  THE  QUALI-
FIED  CHILD  CARE FACILITY IS A PARTNERSHIP OR A NEW YORK S CORPORATION,
THEN SUCH CAP SHALL BE APPLIED AT THE ENTITY  LEVEL,  SO  THE  AGGREGATE
CREDIT  ALLOWED  TO ALL THE PARTNERS OR SHAREHOLDERS OF SUCH ENTITY IN A
TAXABLE YEAR DOES NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS.
  (B) CREDIT RECAPTURE. IF THERE IS A CESSATION OF OPERATION  OR  CHANGE
IN  OWNERSHIP,  AS  DEFINED  BY SECTION 45F OF THE INTERNAL REVENUE CODE
RELATING TO A QUALIFIED CHILD CARE FACILITY WITH A SITUS IN  THE  STATE,
THE  TAXPAYER  SHALL ADD BACK THE APPLICABLE RECAPTURE PERCENTAGE OF THE
CREDIT ALLOWED UNDER THIS  SECTION  IN  ACCORDANCE  WITH  THE  RECAPTURE
PROVISIONS  OF  SECTION 45F OF THE INTERNAL REVENUE CODE, BUT THE RECAP-
TURE AMOUNT SHALL BE LIMITED TO THE CREDIT ALLOWED UNDER THIS SECTION.
  (C) REPORTING REQUIREMENTS. A TAXPAYER THAT HAS CLAIMED A CREDIT UNDER
THIS SECTION SHALL NOTIFY THE COMMISSIONER OF ANY  CESSATION  OF  OPERA-
TION, CHANGE IN OWNERSHIP, OR AGREEMENT TO ASSUME RECAPTURE LIABILITY AS
SUCH  TERMS  ARE DEFINED BY SECTION 45F OF THE INTERNAL REVENUE CODE, IN
THE FORM AND MANNER PRESCRIBED BY THE COMMISSIONER.
  (D) DEFINITIONS. THE TERMS "QUALIFIED CHILD CARE EXPENDITURES", "QUAL-
IFIED CHILD CARE FACILITY", "QUALIFIED CHILD CARE RESOURCE AND  REFERRAL
EXPENDITURE",  "CESSATION  OF  OPERATION",  "CHANGE  OF  OWNERSHIP", AND
"APPLICABLE RECAPTURE PERCENTAGE" SHALL HAVE THE  SAME  MEANINGS  AS  IN
SECTION 45F OF THE INTERNAL REVENUE CODE.
  (E)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:

S. 1509                            25                            A. 2009

  (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53;
  (2) ARTICLE 22: SECTION 606(I), SUBSECTIONS (I) AND (JJJ);
  (3) ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
  §  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 53 to read as follows:
  53. EMPLOYER-PROVIDED CHILD CARE CREDIT. (A) ALLOWANCE  OF  CREDIT.  A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
SECTION FORTY-FOUR OF THIS CHAPTER, AGAINST  THE  TAX  IMPOSED  BY  THIS
ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT  OF  THE
CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX  BASED  ON  THE
FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN
SUCH TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.    PROVIDED,  HOWEVER,  THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  (C)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
SEE SECTION FORTY-FOUR OF THIS CHAPTER.
  § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
follows:
(XLIV) EMPLOYER-PROVIDED CHILD       AMOUNT OF CREDIT UNDER SUBDIVISION
CARE CREDIT (JJJ)                    FIFTY-THREE OF SECTION TWO HUNDRED
                                     TEN-B
  § 4. Section 606 of the tax law is amended by adding a new  subsection
(jjj) to read as follows:
  (JJJ)  EMPLOYER-PROVIDED CHILD CARE CREDIT. (1) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION  FORTY-FOUR  OF  THIS  CHAPTER,  AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR  REFUNDED  IN  ACCORDANCE  WITH THE PROVISIONS OF SECTION SIX HUNDRED
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL  BE
PAID THEREON.
  (3)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
SEE SECTION FORTY-FOUR OF THIS CHAPTER.
  § 5. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (dd) to read as follows:
  (DD)  EMPLOYER-PROVIDED  CHILD CARE CREDIT. (1) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION  FORTY-FOUR  OF  THIS  CHAPTER,  AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
SHALL  NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM
FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF  SECTION  FIFTEEN  HUNDRED
TWO  OR  SECTION  FIFTEEN  HUNDRED  TWO-A  OF THIS ARTICLE, WHICHEVER IS
APPLICABLE. HOWEVER, IF THE AMOUNT OF  THE  CREDIT  ALLOWED  UNDER  THIS
SUBDIVISION  FOR  ANY  TAXABLE  YEAR  REDUCES THE TAXPAYER'S TAX TO SUCH
AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED  AS  AN

S. 1509                            26                            A. 2009

OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS  OF  SECTION  ONE  THOUSAND  EIGHTY-SIX  OF   THIS   CHAPTER.
PROVIDED,  HOWEVER,  THE  PROVISIONS  OF  SUBSECTION (C) OF ONE THOUSAND
EIGHTY-EIGHT  OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID
THEREON.
  (3) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING  RECAPTURE  OF  CREDIT,
SEE SECTION FORTY-FOUR OF THIS CHAPTER
  §  6. This act shall take effect immediately and apply to years begin-
ning on or after January 1, 2020.

                                 PART M

  Section 1. Paragraph 1 of subsection (b) of section 631 of the tax law
is amended by adding a new subparagraph (D-1) to read as follows:
  (D-1) GAMBLING WINNINGS IN EXCESS OF FIVE THOUSAND DOLLARS FROM WAGER-
ING TRANSACTIONS WITHIN THE STATE; OR
  § 2. Paragraph 2 of subsection (b) of section 671 of the  tax  law  is
amended by adding a new subparagraph (E) to read as follows:
  (E)  ANY  GAMBLING  WINNINGS  FROM  A WAGERING TRANSACTION WITHIN THIS
STATE, IF THE PROCEEDS FROM THE WAGER ARE SUBJECT TO  WITHHOLDING  UNDER
SECTION THREE THOUSAND FOUR HUNDRED TWO OF THE INTERNAL REVENUE CODE.
  § 3. This act shall take effect immediately and shall apply to taxable
years  beginning on or after January 1, 2019; provided, however that the
amendments to subsection (b) of section 671  of  the  tax  law  made  by
section  two  of  this  act  shall  not  affect  the  expiration of such
subsection and shall be deemed to expire therewith.

                                 PART N

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

S. 1509                            27                            A. 2009

  § 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2019.

                                 PART O

  Section  1.  Section  12  of part N of chapter 61 of the laws of 2005,
amending the tax law relating to certain transactions and related infor-
mation and relating to the voluntary compliance initiative,  as  amended
by  section 1 of part M of chapter 60 of the laws of 2016, is amended to
read as follows:
  § 12. This act shall take effect immediately; provided, however,  that
(i)  section  one  of  this act shall apply to all disclosure statements
described in paragraph 1 of subdivision (a) of section  25  of  the  tax
law, as added by section one of this act, that were required to be filed
with  the  internal  revenue service at any time with respect to "listed
transactions" as described in such paragraph 1, and shall apply  to  all
disclosure  statements  described  in  paragraph 1 of subdivision (a) of
section 25 of the tax law, as added by section one  of  this  act,  that
were required to be filed with the internal revenue service with respect
to  "reportable  transactions"  as  described in such paragraph 1, other
than "listed transactions", in which a taxpayer participated during  any
taxable year for which the statute of limitations for assessment has not
expired  as  of  the date this act shall take effect, and shall apply to
returns or statements described in such paragraph 1 required to be filed
by taxpayers (or persons  as  described  in  such  paragraph)  with  the
commissioner  of taxation and finance on or after the sixtieth day after
this act shall have become a law; and
  (ii) sections two through four and seven  through  nine  of  this  act
shall apply to any tax liability for which the statute of limitations on
assessment  has  not expired as of the date this act shall take effect[;
and
  (iii) provided, further, that  the  provisions  of  this  act,  except
section  five  of  this act, shall expire and be deemed repealed July 1,
2019; provided, that, such expiration and repeal shall  not  affect  any
requirement imposed pursuant to this act].
  §  2.  Subsection (aa) of section 685 of the tax law is REPEALED and a
new subsection (aa) is added to read as follows:
  (AA) TAX PREPARER PENALTY.-- (1) IF A  TAX  RETURN  PREPARER  TAKES  A
POSITION  ON  ANY  INCOME  TAX  RETURN  OR CREDIT CLAIM FORM THAT EITHER
UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A  REFUND,  AND
THE  PREPARER  KNEW, OR REASONABLY SHOULD HAVE KNOWN, THAT SAID POSITION
WAS NOT PROPER, AND SUCH POSITION WAS NOT ADEQUATELY  DISCLOSED  ON  THE
RETURN OR IN A STATEMENT ATTACHED TO THE RETURN, SUCH INCOME TAX PREPAR-
ER SHALL PAY A PENALTY OF BETWEEN ONE HUNDRED AND ONE THOUSAND DOLLARS.
  (2) IF A TAX RETURN PREPARER TAKES A POSITION ON ANY INCOME TAX RETURN
OR  CREDIT  CLAIM  FORM  THAT  EITHER  UNDERSTATES  THE TAX LIABILITY OR
INCREASES THE CLAIM FOR A REFUND  AND  THE  UNDERSTATEMENT  OF  THE  TAX
LIABILITY  OR  THE  INCREASED  CLAIM FOR REFUND IS DUE TO THE PREPARER'S
RECKLESS OR INTENTIONAL DISREGARD OF THE LAW, RULES OR REGULATIONS, SUCH
PREPARER SHALL PAY A PENALTY OF BETWEEN FIVE HUNDRED AND  FIVE  THOUSAND
DOLLARS.  THE  AMOUNT  OF THE PENALTY PAYABLE BY ANY PERSON BY REASON OF
THIS PARAGRAPH SHALL BE REDUCED BY THE AMOUNT OF  THE  PENALTY  PAID  BY
SUCH PERSON BY REASON OF PARAGRAPH ONE OF THIS SUBSECTION.
  (3)  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "UNDERSTATEMENT OF TAX
LIABILITY" MEANS ANY UNDERSTATEMENT  OF  THE  NET  AMOUNT  PAYABLE  WITH

S. 1509                            28                            A. 2009

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

                                 PART P

S. 1509                            29                            A. 2009

  Section  1.  Clauses  (iii), (iv), (v), (vi) and (vii) of subparagraph
(B) of paragraph 1 of subsection (a) of section 601 of the tax  law,  as
added  by  section  1  of  part R of chapter 59 of the laws of 2017, are
amended to read as follows:
  (iii) For taxable years beginning in two thousand twenty the following
rates shall apply:
If the New York taxable income is:    The tax is:
Not over $17,150                      4% of the New York taxable income
Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                      $17,150
Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                      $23,600
Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
                                      $27,900
Over $43,000 but not over $161,550    $2,093 plus 6.09% of excess over
                                      $43,000
Over $161,550 but not over $323,200   $9,313 plus 6.41% of excess over
                                      $161,550
Over $323,200 BUT NOT OVER            $19,674 plus 6.85% of excess
$2,155,350                            $323,200 over
OVER $2,155,350                       $145,177 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350
  (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
following rates shall apply:
If the New York taxable income is:    The tax is:
Not over $17,150                      4% of the New York taxable income
Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                      $17,150
Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                      $23,600
Over $27,900 but not over $43,000     $1,202 plus 5.9% of excess over
                                      $27,900
Over $43,000 but not over $161,550    $2,093 plus 5.97% of excess over
                                      $43,000
Over $161,550 but not over $323,200   $9,170 plus 6.33% of excess over
                                      $161,550
Over $323,200 BUT NOT OVER            $19,403 plus 6.85% of excess
$2,155,350                            over  $323,200
OVER $2,155,350                       $144,905 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350
  (v) For taxable years beginning in two thousand twenty-two the follow-
ing rates shall apply:
If the New York taxable income is:    The tax is:
Not over $17,150                      4% of the New York taxable income
Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                      $17,150
Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                      $23,600
Over $27,900 but not over $161,550    $1,202 plus 5.85% of excess over
                                      $27,900
Over $161,550 but not over $323,200   $9,021 plus 6.25% of excess over
                                      $161,550
Over $323,200 BUT NOT OVER $2,155,350 $19,124 plus
                                      6.85% of excess over $323,200
OVER $2,155,350                       $144,626 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350

S. 1509                            30                            A. 2009

  (vi) For taxable years beginning  in  two  thousand  twenty-three  the
following rates shall apply:
If the New York taxable income is:    The tax is:
Not over $17,150                      4% of the New York taxable income
Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                      $17,150
Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                      $23,600
Over $27,900 but not over $161,550    $1,202 plus 5.73% of excess over
                                      $27,900
Over $161,550 but not over $323,200   $8,860 plus 6.17% of excess over
                                      $161,550
Over $323,200 BUT NOT OVER            $18,834 plus 6.85% of
$2,155,350                            excess over $323,200
OVER $2,155,350                       $144,336 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350
  (vii)  For  taxable  years  beginning  in two thousand twenty-four the
following rates shall apply:
If the New York taxable income is:    The tax is:
Not over $17,150                      4% of the New York taxable income
Over $17,150 but not over $23,600     $686 plus 4.5% of excess over
                                      $17,150
Over $23,600 but not over $27,900     $976 plus 5.25% of excess over
                                      $23,600
Over $27,900 but not over $161,550    $1,202 plus 5.61% of excess over
                                      $27,900
Over $161,550 but not over $323,200   $8,700 plus 6.09% of excess over
                                      $161,550
Over $323,200 BUT NOT OVER            $18,544 plus 6.85% of
OVER $2,155,350                       excess over $323,200
OVER $2,155,350                       $144,047 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350
  § 2. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph  (B)  of
paragraph 1 of subsection (b) of section 601 of the tax law, as added by
section  2  of  part R of chapter 59 of the laws of 2017, are amended to
read as follows:
  (iii) For taxable years beginning in two thousand twenty the following
rates shall apply:
If the New York taxable income is:    The tax is:
Not over $12,800                      4% of the New York taxable income
Over $12,800 but not over $17,650     $512 plus 4.5% of excess over $12,800
Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                      $17,650
Over $20,900 but not over $32,200     $901 plus 5.9% of excess over $20,900
Over $32,200 but not over $107,650    $1,568 plus 6.09% of excess over
                                      $32,200
Over $107,650 but not over $269,300   $6,162 plus 6.41% of excess over
                                      $107,650
Over $269,300 BUT NOT OVER            $16,524 plus 6.85% of
$1,616,450                            excess over $269,300
OVER $1,616,450                       $108,804 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450
  (iv) For taxable  years  beginning  in  two  thousand  twenty-one  the
following rates shall apply:

S. 1509                            31                            A. 2009

If the New York taxable income is:    The tax is:
Not over $12,800                      4% of the New York taxable income
Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                      $12,800
Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                      $17,650
Over $20,900 but not over $32,200     $901 plus 5.9% of excess over
                                      $20,900
Over $32,200 but not over $107,650    $1,568 plus 5.97% of excess over
                                      $32,200
Over $107,650 but not over $269,300   $6,072 plus 6.33% of excess over
                                      $107,650
Over $269,300 BUT NOT OVER             $16,304 plus 6.85% of
$1,616,450                            excess over $269,300
OVER $1,616,450                       $108,584 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450
  (v) For taxable years beginning in two thousand twenty-two the follow-
ing rates shall apply:
If the New York taxable income is:    The tax is:
Not over $12,800                      4% of the New York taxable income
Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                      $12,800
Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                      $17,650
Over $20,900 but not over $107,650    $901 plus 5.85% of excess over
                                      $20,900
Over $107,650 but not over $269,300   $5,976 plus 6.25% of excess over
                                      $107,650
Over $269,300 BUT NOT OVER            $16,079 plus 6.85% of excess
$1,616,450                            over $269,300
OVER $1,616,450                       $108,359 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450
  (vi)  For  taxable  years  beginning  in two thousand twenty-three the
following rates shall apply:
If the New York taxable income is:    The tax is:
Not over $12,800                      4% of the New York taxable income
Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                      $12,800
Over $17,650 but not over $20,900     $730 plus 5.25% of excess over
                                      $17,650
Over $20,900 but not over $107,650    $901 plus 5.73% of excess over
                                      $20,900
Over $107,650 but not over $269,300   $5,872 plus 6.17% of excess over
                                      $107,650
Over $269,300 BUT NOT OVER            $15,845 plus 6.85% of excess
$1,616,450                            over $269,300
OVER $1,616,450                       $108,125 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450
  (vii) For taxable years beginning  in  two  thousand  twenty-four  the
following rates shall apply:
If the New York taxable income is:    The tax is:
Not over $12,800                      4% of the New York taxable income
Over $12,800 but not over $17,650     $512 plus 4.5% of excess over
                                      $12,800
Over $17,650 but not over $20,900     $730 plus 5.25% of excess over

S. 1509                            32                            A. 2009

                                      $17,650
Over $20,900 but not over $107,650    $901 plus 5.61% of excess over
                                      $20,900
Over $107,650 but not over $269,300   $5,768 plus 6.09% of excess over
                                      $107,650
Over $269,300 BUT NOT OVER            $15,612 plus 6.85% of excess
$1,616,450                            over $269,300
OVER $1,616,450                       $107,892 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450
  §  3.  Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of
paragraph 1 of subsection (c) of section 601 of the tax law, as added by
section 3 of part R of chapter 59 of the laws of  2017,  is  amended  to
read as follows:
  (iii) For taxable years beginning in two thousand twenty the following
rates shall apply:
If the New York taxable income is:    The tax is:
Not over $8,500                       4% of the New York taxable income
Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                      $8,500
Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                      $11,700
Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
                                      $13,900
Over $21,400 but not over $80,650     $1,042 plus 6.09% of excess over
                                      $21,400
Over $80,650 but not over $215,400    $4,650 plus 6.41% of excess over
                                      $80,650
Over $215,400 BUT NOT OVER            $13,288 plus 6.85% of excess
$1,077,550                            over $215,400
OVER $1,077,550                       $72,345 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  (iv)  For  taxable  years  beginning  in  two  thousand twenty-one the
following rates shall apply:
If the New York taxable income is:    The tax is:
Not over $8,500                       4% of the New York taxable income
Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                      $8,500
Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                      $11,700
Over $13,900 but not over $21,400     $600 plus 5.9% of excess over
                                      $13,900
Over $21,400 but not over $80,650     $1,042 plus 5.97% of excess over
                                      $21,400
Over $80,650 but not over $215,400    $4,579 plus 6.33% of excess over
                                      $80,650
Over $215,400 BUT NOT OVER            $13,109 plus 6.85% of excess
$1,077,550                            over $215,400
OVER $1,077,550                       $72,166 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  (v) For taxable years beginning in two thousand twenty-two the follow-
ing rates shall apply:
If the New York taxable income is:    The tax is:
Not over $8,500                       4% of the New York taxable income
Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                      $8,500
Over $11,700 but not over $13,900     $484 plus 5.25% of excess over

S. 1509                            33                            A. 2009

                                      $11,700
Over $13,900 but not over $80,650     $600 plus 5.85% of excess over
                                      $13,900
Over $80,650 but not over $215,400    $4,504 plus 6.25% of excess over
                                      $80,650
Over $215,400 BUT NOT OVER            $12,926 plus 6.85% of excess
$1,077,550                            over $215,400
OVER $1,077,550                       $71,984 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  (vi)  For  taxable  years  beginning  in two thousand twenty-three the
following rates shall apply:
If the New York taxable income is:    The tax is:
Not over $8,500                       4% of the New York taxable income
Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                      $8,500
Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                      $11,700
Over $13,900 but not over $80,650     $600 plus 5.73% of excess over
                                      $13,900
Over $80,650 but not over $215,400    $4,424 plus 6.17% of excess over
                                      $80,650
Over $215,400 BUT NOT OVER            $12,738 plus 6.85% of excess
$1,077,550                            over $215,400
OVER $1,077,550                       $71,796 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  (vii) For taxable years beginning  in  two  thousand  twenty-four  the
following rates shall apply:
If the New York taxable income is:    The tax is:
Not over $8,500                       4% of the New York taxable income
Over $8,500 but not over $11,700      $340 plus 4.5% of excess over
                                      $8,500
Over $11,700 but not over $13,900     $484 plus 5.25% of excess over
                                      $11,700
Over $13,900 but not over $80,650     $600 plus 5.61% of excess over
                                      $13,900
Over $80,650 but not over $215,400    $4,344 plus 6.09% of excess over
                                      $80,650
Over $215,400 BUT NOT OVER            $12,550 plus 6.85% of excess
$1,077,550                            over $215,400
OVER $1,077,550                       $71,608 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  §  4.  Subparagraph  (D) of paragraph 1 of subsection (d-1) of section
601 of the tax law, as amended by section 4 of part R of chapter  59  of
the laws of 2017, is amended to read as follows:
  (D)  The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 8.82 percent rate of tax for  the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for  such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of  this  section
less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
of  this  paragraph.  The  fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand  dollars  or  the
excess  of  New York adjusted gross income for the taxable year over two
million dollars and the denominator  is  fifty  thousand  dollars.  This
subparagraph  shall  apply  only  to taxable years beginning on or after

S. 1509                            34                            A. 2009

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

                                 PART Q

  Section 1. Subsection (g) of section 615 of the tax law, as amended by
section  1  of  part  S of chapter 59 of the laws of 2017, is amended to
read as follows:
  (g) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, THE NEW YORK ITEM-
IZED DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT  ALLOWED
UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS MODI-
FIED  BY PARAGRAPH NINE OF SUBSECTION (C) OF THIS SECTION AND AS LIMITED
BY THIS SUBSECTION. (1) With respect to an  individual  whose  New  York
adjusted  gross  income is over one million dollars and no more than ten
million dollars, the New York itemized  deduction  shall  be  an  amount
equal  to fifty percent of any charitable contribution deduction allowed
under section one hundred seventy of the internal revenue code for taxa-
ble years beginning after two thousand  nine  and  before  two  thousand
[twenty]  TWENTY-FIVE.  With  respect  to  an  individual whose New York
adjusted gross income is over one million dollars, the New York itemized
deduction shall be an amount equal to fifty percent  of  any  charitable

S. 1509                            35                            A. 2009

contribution  deduction allowed under section one hundred seventy of the
internal revenue code for taxable years beginning in two  thousand  nine
or after two thousand [nineteen] TWENTY-FOUR.
  (2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount  equal  to  twenty-five  percent  of  any charitable contribution
deduction allowed under section one  hundred  seventy  of  the  internal
revenue  code  for  taxable  years beginning after two thousand nine and
ending before two thousand [twenty] TWENTY-FIVE.
  § 2. Subdivision (g) of section 11-1715 of the administrative code  of
the city of New York, as amended by section 2 of part S of chapter 59 of
the laws of 2017, is amended to read as follows:
  (g) NOTWITHSTANDING SUBDIVISION (A) OF THIS SECTION, THE CITY ITEMIZED
DEDUCTION FOR CHARITABLE CONTRIBUTIONS SHALL BE THE AMOUNT ALLOWED UNDER
SECTION  ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE, AS LIMITED BY
THIS SUBDIVISION. (1) With respect  to  an  individual  whose  New  York
adjusted  gross  income is over one million dollars but no more than ten
million dollars, the New York itemized  deduction  shall  be  an  amount
equal  to fifty percent of any charitable contribution deduction allowed
under section one hundred seventy of the internal revenue code for taxa-
ble years beginning after two thousand  nine  and  before  two  thousand
[twenty]  TWENTY-FIVE.  With  respect  to  an  individual whose New York
adjusted gross income is over one million dollars, the New York itemized
deduction shall be an amount equal to fifty percent  of  any  charitable
contribution  deduction allowed under section one hundred seventy of the
internal revenue code for taxable years beginning in two  thousand  nine
or after two thousand [nineteen] TWENTY-FOUR.
  (2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount  equal  to  twenty-five  percent  of  any charitable contribution
deduction allowed under section one  hundred  seventy  of  the  internal
revenue  code  for  taxable  years beginning after two thousand nine and
ending before two thousand [twenty] TWENTY-FIVE.
  § 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.

                                 PART R

  Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax
law, as amended by chapter 315 of the laws of 2017, is amended  to  read
as follows:
  (a)  General.  A  taxpayer  shall  be allowed a credit against the tax
imposed by this article. Such credit,  to  be  computed  as  hereinafter
provided,  shall  be allowed for bioheating fuel, used for space heating
or hot water production  for  residential  purposes  within  this  state
purchased before January first, two thousand [twenty] TWENTY-THREE. Such
credit  shall be $0.01 per percent of biodiesel per gallon of bioheating
fuel, not to exceed twenty cents per gallon, purchased by such taxpayer.
Provided, however, that on or after January first, two  thousand  seven-
teen,  this  credit shall not apply to bioheating fuel that is less than
six percent biodiesel per gallon of bioheating fuel.
  § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as
amended by chapter 315 of the laws  of  2017,  is  amended  to  read  as
follows:
  (1)  A  taxpayer  shall be allowed a credit against the tax imposed by
this article. Such credit, to be computed as hereinafter provided, shall

S. 1509                            36                            A. 2009

be allowed for bioheating fuel, used for  space  heating  or  hot  water
production  for  residential purposes within this state and purchased on
or after July first, two thousand six and before July first,  two  thou-
sand  seven and on or after January first, two thousand eight and before
January first, two thousand [twenty] TWENTY-THREE. Such credit shall  be
$0.01  per  percent  of  biodiesel per gallon of bioheating fuel, not to
exceed twenty cents per gallon, purchased by  such  taxpayer.  Provided,
however,  that  on  or after January first, two thousand seventeen, this
credit shall not apply to bioheating fuel that is less than six  percent
biodiesel per gallon of bioheating fuel.
  § 3. This act shall take effect immediately.

                                 PART S

  Section  1.  Subdivision (e) of section 23 of the part U of chapter 61
of the laws of 2011, amending the real property tax law and  other  laws
relating  to establishing standards for electronic tax administration is
REPEALED.
  § 2. This act shall take effect immediately.

                                 PART T

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

                                 PART U

  Section 1. Paragraph (e) of subdivision 26 of section 210-B of the tax
law,  as  amended  by  section 2 of part RR of chapter 59 of the laws of
2018, is amended to read as follows:

S. 1509                            37                            A. 2009

  (e) [To] EXCEPT IN THE CASE  OF  A  QUALIFIED  REHABILITATION  PROJECT
UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
BY  THE  STATE,  THAT  IS UNDER THE JURISDICTION OF THE OFFICE OF PARKS,
RECREATION AND HISTORIC PRESERVATION, TO  be  eligible  for  the  credit
allowable under this subdivision, the rehabilitation project shall be in
whole  or  in  part located within a census tract which is identified as
being at or below one hundred percent of the state median family  income
as  calculated as of April first of each year using the most recent five
year estimate from the American community survey published by the United
States Census bureau.  If there is a change in the most recent five year
estimate, a census tract  that  qualified  for  eligibility  under  this
program  before  information  about  the change was released will remain
eligible for a credit under  this  subdivision  for  an  additional  two
calendar years.
  §  2. Paragraph 5 of subsection (oo) of section 606 of the tax law, as
amended by section 1 of part RR of chapter 59 of the laws  of  2018,  is
amended to read as follows:
  (5)  [To]  EXCEPT  IN  THE  CASE OF A QUALIFIED REHABILITATION PROJECT
UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
BY THE STATE, THAT IS UNDER THE JURISDICTION OF  THE  OFFICE  OF  PARKS,
RECREATION  AND  HISTORIC  PRESERVATION,  TO  be eligible for the credit
allowable under this subsection the rehabilitation project shall  be  in
whole  or  in  part located within a census tract which is identified as
being at or below one hundred percent of the state median family  income
as  calculated as of April first of each year using the most recent five
year estimate from the American community survey published by the United
States Census bureau.  If there is a change in the most recent five year
estimate, a census tract  that  qualified  for  eligibility  under  this
program  before  information  about  the change was released will remain
eligible for a credit under this subsection for an additional two calen-
dar years.
  § 3. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as
amended by section 3 of part RR of chapter 59 of the laws  of  2018,  is
amended to read as follows:
  (5)  [To]  EXCEPT  IN  THE  CASE OF A QUALIFIED REHABILITATION PROJECT
UNDERTAKEN WITHIN A STATE PARK, STATE HISTORIC SITE, OR OTHER LAND OWNED
BY THE STATE, THAT IS UNDER THE JURISDICTION OF  THE  OFFICE  OF  PARKS,
RECREATION  AND  HISTORIC  PRESERVATION,  TO  be eligible for the credit
allowable under this subdivision, the rehabilitation project shall be in
whole or in part located within a census tract which  is  identified  as
being  at or below one hundred percent of the state median family income
as calculated as of April first of each year using the most recent  five
year estimate from the American community survey published by the United
States Census bureau.  If there is a change in the most recent five year
estimate,  a  census  tract  that  qualified  for eligibility under this
program before information about the change  was  released  will  remain
eligible  for  a  credit  under  this  subdivision for an additional two
calendar years.
  § 4. This act shall take effect immediately and apply to taxable years
beginning on and after January 1, 2020.

                                 PART V

  Section 1. Subdivision (jj) of section 1115 of the tax law,  as  added
by section 1 of part UU of chapter 59 of the laws of 2015, is amended to
read as follows:

S. 1509                            38                            A. 2009

  (jj)  Tangible  personal  property or services otherwise taxable under
this article sold to a related person shall not be subject to the  taxes
imposed by section eleven hundred five of this article or the compensat-
ing  use  tax  imposed  under section eleven hundred ten of this article
where the purchaser can show that the following conditions have been met
to  the  extent they are applicable: (1)(i) the vendor and the purchaser
are referenced as either a "covered company"  as  described  in  section
243.2(f)  or a "material entity" as described in section 243.2(l) of the
Code of Federal Regulations in a resolution plan that has been submitted
to an agency of the United States for the purpose of satisfying subpara-
graph 1 of paragraph (d) of section one hundred sixty-five of the  Dodd-
Frank  Wall Street Reform and Consumer Protection Act (the "Act") or any
successor law, or (ii) the vendor and the purchaser are  separate  legal
entities  pursuant  to a divestiture directed pursuant to subparagraph 5
of paragraph (d) of section one hundred sixty-five of such  act  or  any
successor law; (2) the sale would not have occurred between such related
entities were it not for such resolution plan or divestiture; and (3) in
acquiring  such  property  or  services,  the  vendor  did  not claim an
exemption from the tax imposed by this state or another state  based  on
the  vendor's  intent  to  resell such services or property. A person is
related to another person for purposes of this subdivision if the person
bears a relationship to such person described  in  section  two  hundred
sixty-seven of the internal revenue code. The exemption provided by this
subdivision  shall  not  apply to sales made, services rendered, or uses
occurring after June  thirtieth,  two  thousand  [nineteen]  TWENTY-ONE,
except  with respect to sales made, services rendered, or uses occurring
pursuant to binding contracts entered into on or before such  date;  but
in no case shall such exemption apply after June thirtieth, two thousand
twenty-four.
  § 2. This act shall take effect immediately.

                                 PART W

  Section  1.  The mental hygiene law is amended by adding a new section
32.38 to read as follows:
§ 32.38 POWER TO ADMINISTER THE RECOVERY TAX CREDIT PROGRAM.
  (A) AUTHORIZATION. THE COMMISSIONER IS  AUTHORIZED  TO  ESTABLISH  AND
ADMINISTER  THE RECOVERY TAX CREDIT PROGRAM TO PROVIDE TAX INCENTIVES TO
CERTIFIED EMPLOYERS FOR EMPLOYING ELIGIBLE INDIVIDUALS IN RECOVERY  FROM
A  SUBSTANCE  USE  DISORDER  IN PART-TIME AND FULL-TIME POSITIONS IN THE
STATE. THE COMMISSIONER IS AUTHORIZED TO  ALLOCATE  UP  TO  TWO  MILLION
DOLLARS  OF  TAX  CREDITS  ANNUALLY  FOR THE RECOVERY TAX CREDIT PROGRAM
BEGINNING IN THE YEAR TWO THOUSAND TWENTY.
  (B) DEFINITIONS. 1. THE TERM "CERTIFIED EMPLOYER"  MEANS  AN  EMPLOYER
THAT  HAS  RECEIVED  A  CERTIFICATE  OF TAX CREDIT FROM THE COMMISSIONER
AFTER THE COMMISSIONER HAS DETERMINED THAT THE EMPLOYER:
  (I) PROVIDES A RECOVERY SUPPORTIVE ENVIRONMENT EVIDENCED BY  A  FORMAL
WORKING  RELATIONSHIP  WITH  A  LOCAL RECOVERY COMMUNITY ORGANIZATION TO
PROVIDE SUPPORT FOR EMPLOYERS INCLUDING ANY NECESSARY ASSISTANCE IN  THE
HIRING  PROCESS OF ELIGIBLE INDIVIDUALS IN RECOVERY FROM A SUBSTANCE USE
DISORDER AND TRAINING FOR EMPLOYERS OR SUPERVISORS; AND
  (II) FULFILLS THE ELIGIBILITY CRITERIA SET FORTH IN THIS  SECTION  AND
BY  THE  COMMISSIONER  TO PARTICIPATE IN THE RECOVERY TAX CREDIT PROGRAM
ESTABLISHED IN THIS SECTION.
  2. THE TERM "ELIGIBLE INDIVIDUAL" MEANS AN INDIVIDUAL WITH A SUBSTANCE
USE DISORDER AS THAT TERM IS DEFINED IN SECTION 1.03 OF THIS CHAPTER WHO

S. 1509                            39                            A. 2009

IS IN A STATE OF WELLNESS WHERE THERE IS AN ABATEMENT OF SIGNS AND SYMP-
TOMS THAT CHARACTERIZE ACTIVE ADDICTION  AND  HAS  DEMONSTRATED  TO  THE
QUALIFIED  EMPLOYER'S SATISFACTION THAT HE OR SHE HAS COMPLETED A COURSE
OF TREATMENT FOR SUCH SUBSTANCE USE DISORDER.
  (C) APPLICATION AND APPROVAL PROCESS. 1. TO PARTICIPATE IN THE PROGRAM
ESTABLISHED  BY  THIS SECTION, AN EMPLOYER MUST, IN A FORM PRESCRIBED BY
THE COMMISSIONER, APPLY ANNUALLY TO THE OFFICE BY JANUARY  FIFTEENTH  TO
CLAIM CREDIT BASED ON ELIGIBLE INDIVIDUALS EMPLOYED DURING THE PRECEDING
CALENDAR YEAR. AS PART OF SUCH APPLICATION, AN EMPLOYER MUST:
  (I) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX  INFORMATION  WITH  THE  OFFICE  OF  ALCOHOLISM  AND SUBSTANCE ABUSE
SERVICES. HOWEVER, ANY INFORMATION  SHARED  BECAUSE  OF  THIS  AGREEMENT
SHALL  NOT  BE  AVAILABLE  FOR  DISCLOSURE OR INSPECTION UNDER THE STATE
FREEDOM OF INFORMATION LAW.
  (II) ALLOW THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE  SERVICES  AND
ITS AGENTS ACCESS TO ALL BOOKS AND RECORDS THE DEPARTMENT MAY REQUIRE TO
MONITOR COMPLIANCE WITH PROGRAM ELIGIBILITY REQUIREMENTS.
  (III)  DEMONSTRATE THAT THE EMPLOYER HAS SATISFIED PROGRAM ELIGIBILITY
REQUIREMENTS AND PROVIDED ALL THE INFORMATION NECESSARY,  INCLUDING  THE
NUMBER  OF HOURS WORKED BY ANY ELIGIBLE INDIVIDUAL, FOR THE COMMISSIONER
TO COMPUTE AN ACTUAL AMOUNT OF CREDIT ALLOWED.
  2. (I) AFTER REVIEWING THE APPLICATION AND FINDING IT SUFFICIENT,  THE
COMMISSIONER  SHALL  ISSUE  A CERTIFICATE OF TAX CREDIT BY MARCH THIRTY-
FIRST. SUCH CERTIFICATE SHALL INCLUDE, BUT NOT BE LIMITED TO,  THE  NAME
AND EMPLOYER IDENTIFICATION NUMBER OF THE CERTIFIED EMPLOYER, THE AMOUNT
OF  CREDIT THAT THE CERTIFIED EMPLOYER MAY CLAIM, AND ANY OTHER INFORMA-
TION THE COMMISSIONER OF TAXATION AND FINANCE DETERMINES IS NECESSARY.
  (II) IN DETERMINING THE AMOUNT OF CREDIT THAT ANY EMPLOYER MAY  CLAIM,
THE COMMISSIONER SHALL REVIEW ALL CLAIMS SUBMITTED FOR CREDIT BY EMPLOY-
ERS  AND,  TO  THE  EXTENT  THAT  THE  TOTAL AMOUNT CLAIMED BY EMPLOYERS
EXCEEDS THE AMOUNT ALLOCATED FOR THE  PROGRAM  IN  THAT  CALENDAR  YEAR,
SHALL ISSUE CREDITS ON A PRO-RATA BASIS CORRESPONDING TO EACH CLAIMANT'S
SHARE OF THE TOTAL CLAIMED AMOUNT.
  (D) ELIGIBILITY. A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CRED-
IT  EQUAL TO THE PRODUCT OF ONE DOLLAR AND THE NUMBER OF HOURS WORKED BY
EACH ELIGIBLE INDIVIDUAL DURING SUCH INDIVIDUAL'S PERIOD OF ELIGIBILITY.
THE CREDIT SHALL NOT BE  ALLOWED  UNLESS  THE  ELIGIBLE  INDIVIDUAL  HAS
WORKED  IN  STATE  FOR A MINIMUM OF FIVE HUNDRED HOURS FOR THE CERTIFIED
EMPLOYER, AND THE CREDIT CANNOT EXCEED TWO THOUSAND DOLLARS PER ELIGIBLE
INDIVIDUAL EMPLOYED BY THE CERTIFIED EMPLOYER IN THE STATE.  THE  PERIOD
OF  ELIGIBILITY FOR EACH SUCH EMPLOYEE STARTS ON THE DAY THE EMPLOYEE IS
HIRED AND ENDS ON DECEMBER THIRTY-FIRST OF  THE  IMMEDIATELY  SUCCEEDING
CALENDAR YEAR OR THE LAST DAY OF THE EMPLOYEE'S EMPLOYMENT BY THE CERTI-
FIED  EMPLOYER,  WHICHEVER  COMES  FIRST.  IF  AN EMPLOYEE HAS WORKED IN
EXCESS OF FIVE HUNDRED HOURS BETWEEN THE DATE  OF  HIRING  AND  DECEMBER
THIRTY-FIRST  OF THAT YEAR, AN EMPLOYER CAN ELECT TO COMPUTE AND CLAIM A
CREDIT FOR SUCH EMPLOYEE IN THAT YEAR  BASED  ON  THE  HOURS  WORKED  BY
DECEMBER  THIRTY-FIRST. ALTERNATIVELY, THE EMPLOYER MAY ELECT TO INCLUDE
SUCH INDIVIDUAL IN THE COMPUTATION OF THE CREDIT IN THE YEAR IMMEDIATELY
SUCCEEDING THE YEAR IN WHICH THE EMPLOYEE WAS HIRED. IN SUCH  CASE,  THE
CREDIT SHALL BE COMPUTED ON THE BASIS OF ALL HOURS WORKED BY SUCH ELIGI-
BLE  INDIVIDUAL  FROM THE DATE OF HIRE TO THE EARLIER OF THE LAST DAY OF
EMPLOYMENT OR DECEMBER THIRTY-FIRST OF THE SUCCEEDING YEAR. HOWEVER,  IN
NO  EVENT  MAY AN EMPLOYEE GENERATE CREDIT FOR HOURS WORKED IN EXCESS OF
TWO THOUSAND HOURS. AN EMPLOYER MAY CLAIM CREDIT ONLY ONCE WITH  RESPECT

S. 1509                            40                            A. 2009

TO  ANY  ELIGIBLE  INDIVIDUAL AND MAY NOT AGGREGATE HOURS OF TWO OR MORE
EMPLOYEES TO REACH THE MINIMUM NUMBER OF HOURS.
  (E)  DUTIES  OF  THE  COMMISSIONER.  THE  COMMISSIONER  SHALL ANNUALLY
PROVIDE TO THE COMMISSIONER OF THE DEPARTMENT OF  TAXATION  AND  FINANCE
INFORMATION  ABOUT THE PROGRAM INCLUDING, BUT NOT LIMITED TO, THE NUMBER
OF CERTIFIED EMPLOYERS THEN PARTICIPATING IN THE PROGRAM, UNIQUE IDENTI-
FYING INFORMATION FOR EACH CERTIFIED EMPLOYER, THE  NUMBER  OF  ELIGIBLE
INDIVIDUALS  EMPLOYED  BY  EACH  CERTIFIED  EMPLOYER, UNIQUE IDENTIFYING
INFORMATION FOR EACH  ELIGIBLE  INDIVIDUAL  EMPLOYED  BY  THE  CERTIFIED
EMPLOYERS,  THE NUMBER OF HOURS WORKED BY SUCH ELIGIBLE INDIVIDUALS, THE
TOTAL DOLLAR AMOUNT OF CLAIMS FOR CREDIT, AND THE DOLLAR AMOUNT OF CRED-
IT GRANTED TO EACH CERTIFIED EMPLOYER.
  (F) CERTIFIED EMPLOYER'S TAXABLE YEAR.  IF  THE  CERTIFIED  EMPLOYER'S
TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM
THE  CREDIT  AS  SHOWN  ON THE CERTIFICATE OF TAX CREDIT ON THE CALENDAR
YEAR RETURN FOR WHICH THE CERTIFICATE OF TAX CREDIT WAS ISSUED.  IF  THE
CERTIFIED  EMPLOYER'S  TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL
BE ENTITLED TO CLAIM THE CREDIT AS SHOWN ON THE CERTIFICATE OF TAX CRED-
IT ON THE RETURN FOR THE FISCAL YEAR THAT INCLUDES THE LAST DAY  OF  THE
CALENDAR YEAR COVERED BY THE CERTIFICATE OF TAX CREDIT.
  (G)  CROSS  REFERENCES.  FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THE TAX LAW:
  1. ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53.
  2. ARTICLE 22: SECTION 606, SUBSECTION (JJJ).
  3. ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
  § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 53 to read as follows:
  53. RECOVERY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A
CERTIFIED  EMPLOYER  PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE  COMMISSIONER  OF
THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
ON  SUCH  CERTIFICATE  OF  TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A
PARTNERSHIP OR MEMBER OF A  LIMITED  LIABILITY  COMPANY  THAT  HAS  BEEN
CERTIFIED  BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE
ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF  THE
MENTAL  HYGIENE  LAW  SHALL  BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS
THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
SECTION  TWO  HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF THE
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
TAX  TO  THAT  AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE
FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, NO INTEREST WILL BE  PAID
THEREON.
  (C)  TAX  RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH
TO ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF  OF
RECEIPT  OF  ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF
THE OFFICE OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  PURSUANT  TO
SECTION 32.38 OF THE MENTAL HYGIENE LAW.

S. 1509                            41                            A. 2009

  § 3. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606
of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
follows:

(XLIV) RECOVERY TAX CREDIT UNDER     AMOUNT OF CREDIT UNDER
SUBSECTION (JJJ)                     SUBDIVISION FIFTY-THREE OF
                                     SECTION TWO HUNDRED TEN-B

  §  4. Section 606 of the tax law is amended by adding a new subsection
(jjj) to read as follows:
  (JJJ) RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS
A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE  COMMISSIONER  OF
THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
ON  SUCH  CERTIFICATE  OF  TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A
PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN  AN
S  CORPORATION THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF THE OFFICE
OF ALCOHOLISM AND SUBSTANCE  ABUSE  SERVICES  AS  A  QUALIFIED  EMPLOYER
PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW SHALL BE ALLOWED ITS
PRO  RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABIL-
ITY COMPANY OR S CORPORATION.
  (2) OVERPAYMENT. IF THE  AMOUNT  OF  THE  CREDIT  ALLOWED  UNDER  THIS
SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXA-
BLE  YEAR,  THE  EXCESS  SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, NO INTEREST WILL
BE PAID THEREON.
  (3) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED  TO  ATTACH
TO  ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF
RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE  COMMISSIONER  OF
THE  OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES PURSUANT TO
SECTION 32.38 OF THE MENTAL HYGIENE LAW.
  § 5. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (dd) to read as follows:
  (DD)  RECOVERY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS
A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF THE MENTAL HYGIENE LAW
THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT FROM THE  COMMISSIONER  OF
THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL BE ALLOWED A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SHOWN
ON  SUCH  CERTIFICATE  OF  TAX CREDIT. A TAXPAYER THAT IS A PARTNER IN A
PARTNERSHIP OR MEMBER OF A  LIMITED  LIABILITY  COMPANY  THAT  HAS  BEEN
CERTIFIED  BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE
ABUSE SERVICES AS A QUALIFIED EMPLOYER PURSUANT TO SECTION 32.38 OF  THE
MENTAL  HYGIENE  LAW  SHALL  BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
EARNED BY THE PARTNERSHIP OR LIMITED LIABILITY COMPANY.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY  PARAGRAPH  FOUR  OF  SUBDIVISION  (A)  OF
SECTION  FIFTEEN  HUNDRED  TWO  OF  THIS  ARTICLE  OR BY SECTION FIFTEEN
HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF  THE
AMOUNT  OF  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, THEN  ANY  AMOUNT  OF  CREDIT  THUS  NOT
DEDUCTIBLE  IN  SUCH  TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF
TAX TO BE CREDITED OR REFUNDED IN  ACCORDANCE  WITH  THE  PROVISIONS  OF
SECTION  ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE

S. 1509                            42                            A. 2009

PROVISIONS OF SUBSECTION (C) OF SECTION  ONE  THOUSAND  EIGHTY-EIGHT  OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  (3)  TAX  RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH
TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER,  PROOF  OF
RECEIPT  OF  ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF
THE OFFICE OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  PURSUANT  TO
SECTION 32.38 OF THE MENTAL HYGIENE LAW.
  § 6. This act shall take effect immediately and shall apply to taxable
years  beginning  on  and after January 1, 2020 and shall apply to those
eligible individuals hired after this act shall take effect.

                                 PART X

  Section 1. Paragraph (a) of subdivision 9 of section 208  of  the  tax
law is amended by adding a new subparagraph 20 to read as follows:
  (20)  ANY  AMOUNT  EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION
ONE HUNDRED EIGHTEEN  OF  THE  INTERNAL  REVENUE  CODE,  FROM  THE  TERM
"CONTRIBUTION  TO  THE  CAPITAL  OF  THE  TAXPAYER"  BY PARAGRAPH TWO OF
SUBSECTION (B) OF SECTION ONE HUNDRED EIGHTEEN OF THE  INTERNAL  REVENUE
CODE.
  §  2. Paragraph 1 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (T) to read as follows:
  (T) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION (A) OF SECTION ONE
HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE, FROM THE  TERM  "CONTRIB-
UTION TO THE CAPITAL OF THE TAXPAYER" BY PARAGRAPH TWO OF SUBSECTION (B)
OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE CODE.
  §  3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph 14 to read as follows:
  (14) ANY AMOUNT EXCEPTED, FOR PURPOSES OF SUBSECTION  (A)  OF  SECTION
ONE  HUNDRED  EIGHTEEN  OF  THE  INTERNAL  REVENUE  CODE,  FROM THE TERM
"CONTRIBUTION TO THE CAPITAL  OF  THE  TAXPAYER"  BY  PARAGRAPH  TWO  OF
SUBSECTION  (B)  OF SECTION ONE HUNDRED EIGHTEEN OF THE INTERNAL REVENUE
CODE.
  § 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.

                                 PART Y

  Section 1. The tax law is amended by adding a new section 44  to  read
as follows:
  §  44.  INVESTMENT  MANAGEMENT  SERVICES.  (A)  FOR  PURPOSES  OF THIS
SECTION, THE TERM "INVESTMENT MANAGEMENT SERVICES" TO A  PARTNERSHIP,  S
CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING
THE  PURCHASE  OR  SALE  OF  SECURITIES  AS  DEFINED IN PARAGRAPH TWO OF
SUBSECTION (C) OF SECTION FOUR  HUNDRED  SEVENTY-FIVE  OF  THE  INTERNAL
REVENUE  CODE  WITHOUT  REGARD TO THE LAST SENTENCE THEREOF, REAL ESTATE
HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS
DEFINED IN PARAGRAPH TWO OF  SUBSECTION  (E)  OF  SECTION  FOUR  HUNDRED
SEVENTY-FIVE  OF  THE  INTERNAL  REVENUE  CODE, OR OPTIONS OR DERIVATIVE
CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING,
OR DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT  TO
THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT
OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI-
VISION.

S. 1509                            43                            A. 2009

  (B)  SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS. NOTWITHSTANDING
ANY STATE OR FEDERAL LAW TO THE CONTRARY:
  (1)  WHERE  A  PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE
PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER  FOR  PURPOSES
OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE
SHARE  OF  INCOME,  GAIN,  LOSS  AND DEDUCTION, INCLUDING ANY GUARANTEED
PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE  WOULD
HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES
FOR  THE  PARTNERSHIP.  INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR
PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS  A  BUSINESS  RECEIPT  FOR
SERVICES  AND  FOR  PURPOSES  OF  ARTICLE  TWENTY-TWO OF THIS CHAPTER AS
INCOME ATTRIBUTABLE TO A  TRADE,  BUSINESS,  PROFESSION  OR  OCCUPATION.
PROVIDED,  HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE
BEEN DETERMINED  IF  THE  PARTNER  PERFORMED  NO  INVESTMENT  MANAGEMENT
SERVICES SHALL NOT BE LESS THAN ZERO.
  (2)  WHERE  A  SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR
THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A  SHAREHOLDER
FOR  PURPOSES  OF  THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE-
HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT  IS  IN
EXCESS  OF  THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE-
HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT  SERVICES.  INSTEAD,  SUCH
EXCESS  AMOUNT  SHALL  BE  TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF
THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION  OR
OCCUPATION.  PROVIDED,  HOWEVER,  THE  AMOUNT OF THE PRO RATA SHARE THAT
WOULD HAVE BEEN DETERMINED IF  THE  SHAREHOLDER  PERFORMED  NO  SERVICES
SHALL NOT BE LESS THAN ZERO.
  (3)  A  PARTNER  OR  SHAREHOLDER  WILL  NOT  BE DEEMED TO BE PROVIDING
INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION  IF  AT  LEAST  EIGHTY
PERCENT  OF  THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER-
SHIP OR S CORPORATION DURING THE TAXABLE YEAR  CONSIST  OF  REAL  ESTATE
HELD FOR RENTAL OR INVESTMENT.
  (C)  IN  ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO
ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY  CORPORATION,  PARTNER
OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT
TO  AN  ADDITIONAL  TAX,  REFERRED  TO AS THE "CARRIED INTEREST FAIRNESS
FEE".  SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE  EQUAL  TO  SEVENTEEN
PERCENT  OF  THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF
THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE  OF  A  CORPORATION  OR
SHAREHOLDER  OF  AN  S  CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT
SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN  PERCENT  OF  THE  EXCESS
AMOUNT  APPORTIONED  TO  THE  STATE  BY  APPLYING THE CORPORATION'S OR S
CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO  HUNDRED
TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID-
ING  SUCH  INVESTMENT  MANAGEMENT  SERVICES,  SUCH FEE SHALL BE EQUAL TO
SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES  AS
DETERMINED  UNDER  SECTION  SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH
CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN  ACCORDANCE  WITH
ARTICLE  NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH
TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS-
LATIVE BILL  DRAFTING  COMMISSION  THAT  FEDERAL  LEGISLATION  HAS  BEEN
ENACTED  THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR
FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION.
  § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law,  as
amended  by  section  5  of part T of chapter 59 of the laws of 2015, is
amended to read as follows:

S. 1509                            44                            A. 2009

   (a) (i) The term "investment income" means income, including  capital
gains  in  excess  of  capital  losses,  from investment capital, to the
extent included in  computing  entire  net  income,  less,  (A)  in  the
discretion  of  the  commissioner,  any interest deductions allowable in
computing  entire  net income which are directly or indirectly attribut-
able to investment capital or investment income, AND (B) ANY NET CAPITAL
GAIN INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED  AS
A  BUSINESS  RECEIPT  PURSUANT  TO  SECTION  FORTY-FOUR OF THIS CHAPTER;
provided, however, that in no case shall investment income exceed entire
net income. (ii) If the amount of interest deductions  subtracted  under
subparagraph (i) of this paragraph exceeds investment income, the excess
of  such  amount over investment income must be added back to entire net
income. (iii) If the taxpayer's  investment  income  determined  without
regard  to  the interest deductions subtracted under subparagraph (i) of
this paragraph comprises more  than  eight  percent  of  the  taxpayer's
entire  net  income, investment income determined without regard to such
interest deductions cannot exceed eight percent of the taxpayer's entire
net income.
  § 3. Subsection (b) of section 617 of the tax law, as amended by chap-
ter 606 of the laws of 1984, is amended to read as follows:
  (b) Character of items. [Each] EXCEPT AS PROVIDED  IN  SECTION  FORTY-
FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income,
gain,  loss, or deduction shall have the same character for a partner or
shareholder under this article as for federal income tax purposes. Where
an item is not characterized for federal income tax purposes,  it  shall
have  the  same  character  for  a partner or shareholder as if realized
directly from the source from which realized by  the  partnership  or  S
corporation  or  incurred in the same manner as incurred by the partner-
ship or S corporation.
  § 4. Subsection (d) of section 631 of the tax law, as amended by chap-
ter 28 of the laws of 1987, is amended to read as follows:
  (d) Purchase and sale for own account.-- A nonresident, other  than  a
dealer  holding property primarily for sale to customers in the ordinary
course of his OR HER trade or  business  OR  A  PARTNER  OR  SHAREHOLDER
PERFORMING  INVESTMENT  MANAGEMENT  SERVICES  AS  DESCRIBED  IN  SECTION
FORTY-FOUR OF THIS CHAPTER, shall not be deemed to carry on a  business,
trade,  profession  or  occupation in this state solely by reason of the
purchase and sale of property or the purchase, sale or writing of  stock
option contracts, or both, for his own account.
  § 5. The opening paragraph of subsection (b) of section 632 of the tax
law, as amended by chapter 28 of the laws of 1987, is amended to read as
follows:
  [In]  EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS CHAP-
TER, IN determining the sources of a nonresident  partner's  income,  no
effect  shall  be  given  to  a  provision  in the partnership agreement
which--
  § 6. For taxable years beginning on  or  after  January  1,  2019  and
before  January  1, 2020, (i) no addition to tax under subsection (c) of
section 685 or subsection (c) of section 1085 of the tax  law  shall  be
imposed  with respect to any underpayment attributable to the amendments
made by this act of any estimated taxes that are  required  to  be  paid
prior  to  the  effective  date  of this act, provided that the taxpayer
timely made those payments; and (ii) the required installment  of  esti-
mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of
subsection (c) of section 685 of the tax law, and the exception to addi-
tion  for underpayment of estimated tax described in paragraph 1 or 2 of

S. 1509                            45                            A. 2009

subsection (d) of section 1085 of  the  tax  law,  in  relation  to  the
preceding  year's  return, shall be calculated as if the amendments made
by this act had been in effect for that entire preceding year.
  §  7.  This  act  shall take effect upon the enactment into law by the
states of Connecticut, New Jersey,  Massachusetts  and  Pennsylvania  of
legislation  having  substantially  the  same effect as this act and the
enactments by such states have taken effect  in  each  state  and  shall
apply  for  taxable  years  beginning  on  or after such date; provided,
however, if the states of Connecticut,  New  Jersey,  Massachusetts  and
Pennsylvania  have already enacted such legislation, this act shall take
effect immediately and shall apply for taxable  years  beginning  on  or
after  January  1, 2019; provided further that the commissioner of taxa-
tion and finance shall notify the legislative bill  drafting  commission
upon the enactment of such legislation by the states of Connecticut, New
Jersey, Massachusetts and Pennsylvania in order that such commission may
maintain an accurate and timely effective data base of the official text
of  the laws of the state of New York in furtherance of effectuating the
provisions of section 44 of the legislative law and section 70-b of  the
public officers law.

                                 PART Z

  Section  1.  Paragraph  3 of subdivision (a) and paragraphs 2 and 5 of
subdivision (c) of section 43 of the tax law, as added by section  7  of
part  K  of  chapter  59  of  the  laws  of 2017, are amended to read as
follows:
  (3) The total amount of credit allowable to a qualified life  sciences
company,  or,  if  the  life  sciences  company  is properly included or
required to be included in a combined report,  to  the  combined  group,
taken  in  the aggregate, shall not exceed five hundred thousand dollars
in any taxable year. If the [life sciences company] TAXPAYER is a  part-
ner in a partnership THAT IS A LIFE SCIENCES COMPANY or A shareholder of
a New York S corporation THAT IS A LIFE SCIENCES COMPANY, then the total
amount of credit allowable shall be applied at the entity level, so that
the total amount of credit allowable to all the partners or shareholders
of  each  such  entity,  taken  in  the  aggregate, does not exceed five
hundred thousand dollars in any taxable year.
  (2) "New business" means any business that qualifies as a new business
under either paragraph (f) of subdivision one  of  section  two  hundred
ten-B  or  paragraph  ten of subsection [one] (A) of section six hundred
six of this chapter.
  (5) "Related person" means a related person as defined in subparagraph
[(c)] (C) of paragraph three of subsection (b) of  section  465  of  the
internal  revenue  code.  For  this  purpose,  a  "related person" shall
include an entity that would have qualified as a "related person" if  it
had not been dissolved, liquidated, merged with another entity or other-
wise ceased to exist or operate.
  §  2.  Subdivision  5  of  section  209  of the tax law, as amended by
section 5 of part A of chapter 59 of the laws of  2014,  is  amended  to
read as follows:
  5.  For  any taxable year of a real estate investment trust as defined
in section eight hundred fifty-six of the internal revenue code in which
such trust is subject to federal income  taxation  under  section  eight
hundred  fifty-seven  of such code, such trust shall be subject to a tax
computed under either paragraph (a) or (d) of subdivision one of section
two hundred ten of this chapter, whichever is greater, and shall not  be

S. 1509                            46                            A. 2009

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

S. 1509                            47                            A. 2009

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

S. 1509                            48                            A. 2009

  §  5.  Subdivision  (e) of section 213-b of the tax law, as amended by
chapter 166 of the laws of 1991, the subdivision heading as  amended  by
section  10-b of part Q of chapter 60 of the laws of 2016, is amended to
read as follows:
  (e)  Interest  on  certain  installments based on the second preceding
year's tax.--Notwithstanding the  provisions  of  section  one  thousand
eighty-eight  of this chapter or of section sixteen of the state finance
law, if an amount paid pursuant to subdivision (a) exceeds  the  tax  or
tax surcharge, respectively, shown on the report required to be filed by
the  taxpayer for the privilege period during which the amount was paid,
interest shall be allowed and paid on the amount by which the amount  so
paid  pursuant to such subdivision exceeds such tax or tax surcharge. In
the case of amounts so paid pursuant to subdivision (a),  such  interest
shall be allowed and paid at the overpayment rate set by the commission-
er  of  taxation and finance pursuant to section one thousand ninety-six
of this chapter, or if no rate is set, at the rate of six per centum per
annum from the date of payment of the amount so paid  pursuant  to  such
subdivision  to  the fifteenth day of the [third] FOURTH month following
the close of the taxable year, provided, however, that no interest shall
be allowed or paid under this subdivision if the amount thereof is  less
than  one dollar or if such interest becomes payable solely because of a
carryback of a net operating loss in a subsequent privilege period.
  § 6. Subdivision (a) of section 1503 of the tax  law,  as  amended  by
chapter 817 of the laws of 1987, is amended to read as follows:
  (a)  The entire net income of a taxpayer shall be its total net income
from all sources which shall be presumably the same as the  life  insur-
ance company taxable income (which shall include, in the case of a stock
life  insurance  company [which] THAT has A BALANCE, AS DETERMINED AS OF
THE CLOSE OF SUCH COMPANY'S LAST TAXABLE YEAR BEGINNING  BEFORE  JANUARY
FIRST,  TWO  THOUSAND  EIGHTEEN,  IN  an  existing policyholders surplus
account, AS SUCH TERM IS DEFINED IN SECTION 815 OF THE INTERNAL  REVENUE
CODE  AS  SUCH  SECTION WAS IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount of [direct and indirect
distributions during the taxable year to shareholders from such account]
ONE-EIGHTH OF SUCH BALANCE), taxable income of a partnership or  taxable
income,  but not alternative minimum taxable income, as the case may be,
which the taxpayer is required to report to the United  States  treasury
department, for the taxable year or, in the case of a corporation exempt
from  federal income tax (other than the tax on unrelated business taxa-
ble income imposed under section 511 of the internal revenue  code)  but
not  exempt  from  tax  under  section  fifteen hundred one, the taxable
income which such taxpayer would have been required to  report  but  for
such exemption, except as hereinafter provided.
  §  7.  Subparagraphs  (A) and (B) of paragraph 1 of subdivision (d) of
section 11-525 of the administrative code of the city of  New  York  are
amended to read as follows:
  (A)  The  tax  shown  on  the return of the taxpayer for the preceding
taxable year OR THE SECOND PRECEDING TAXABLE YEAR,  AS  APPLICABLE  WITH
RESPECT  TO  THE  TAXPAYER'S  DECLARATION  OF ESTIMATED TAX, if a return
showing a liability for tax was filed by the  taxpayer  for  [the]  SUCH
preceding  OR SECOND PRECEDING taxable year and such preceding OR SECOND
PRECEDING year was a taxable year of twelve months, or
  (B) An amount equal to the tax computed, at the  rates  applicable  to
the  taxable  year, but otherwise on the basis of the facts shown on the
taxpayer's return for, and the law applicable to, the preceding  taxable

S. 1509                            49                            A. 2009

year OR THE SECOND PRECEDING TAXABLE YEAR, AS APPLICABLE WITH RESPECT TO
THE TAXPAYER'S DECLARATION OF ESTIMATED TAX, or
  §  8. Paragraphs (a) and (b) of subdivision 4 of section 11-676 of the
administrative code of the city of New  York  are  amended  to  read  as
follows:
  (a)  The  tax  shown  on  the return of the taxpayer for the preceding
taxable year OR THE SECOND PRECEDING TAXABLE YEAR,  AS  APPLICABLE  WITH
RESPECT  TO  THE  TAXPAYER'S  DECLARATION  OF ESTIMATED TAX, if a return
showing a liability for tax was filed by the  taxpayer  for  [the]  SUCH
preceding  OR SECOND PRECEDING taxable year and such preceding OR SECOND
PRECEDING year was a taxable year of twelve months, or
  (b) An amount equal to the tax computed at the rates applicable to the
taxable year, but otherwise on the basis  of  the  facts  shown  on  the
return  of  the  taxpayer  for, and the law applicable to, the preceding
taxable year OR THE SECOND PRECEDING TAXABLE YEAR,  AS  APPLICABLE  WITH
RESPECT TO THE TAXPAYER'S DECLARATION OF ESTIMATED TAX, or
  § 9. Section 2 of chapter 369 of the laws of 2018 amending the tax law
relating  to unrelated business taxable income of a taxpayer, is amended
to read as follows:
  § 2. This act shall take effect immediately and shall apply to  [taxa-
ble  years  beginning]  AMOUNTS PAID OR INCURRED on and after January 1,
2018.
  § 10. This act shall take effect immediately, provided, however, that:
  (i) section one of this act shall be deemed to have been in full force
and effect on and after the effective date of part K of  chapter  59  of
the laws of 2017;
  (ii)  sections two and six of this act shall be deemed to have been in
full force and effect on and after the effective  date  of  part  KK  of
chapter  59  of the laws of 2018; provided, however, that section six of
this act shall apply to taxable years beginning on or after  January  1,
2018 through taxable years beginning on or before January 1, 2025;
  (iii)  section  three of this act shall be deemed to have been in full
force and effect on and after the effective date of part A of chapter 59
of the laws of 2014;
  (iv) sections four, five, seven and eight of this act shall be  deemed
to have been in full force and effect on and after the effective date of
part Q of chapter 60 of the laws of 2016;
  (v)  section  nine  of  this  act shall be deemed to have been in full
force and effect on and after the effective date of chapter 369  of  the
laws of 2018.

                                 PART AA

  Section  1.  Section  487  of  the real property tax law is amended by
adding a new subdivision 10 to read as follows:
  10. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS  SECTION,  ON  OR
AFTER  APRIL  FIRST, TWO THOUSAND NINETEEN, REAL PROPERTY THAT COMPRISES
OR INCLUDES A SOLAR OR WIND ENERGY SYSTEM,  FARM  WASTE  ENERGY  SYSTEM,
MICROHYDROELECTRIC  ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM,
MICROCOMBINED HEAT AND POWER GENERATING EQUIPMENT  SYSTEM,  OR  ELECTRIC
ENERGY  STORAGE SYSTEM AS SUCH TERMS ARE DEFINED IN PARAGRAPHS (B), (F),
(H), (J), (L) AND (N) OF SUBDIVISION ONE OF THIS  SECTION  (HEREINAFTER,
INDIVIDUALLY OR COLLECTIVELY, "ENERGY SYSTEM"), SHALL BE EXEMPT FROM ANY
TAXATION,  SPECIAL  AD  VALOREM  LEVIES,  AND SPECIAL ASSESSMENTS TO THE
EXTENT PROVIDED IN SECTION FOUR HUNDRED NINETY OF THIS ARTICLE, AND  THE
OWNER  OF SUCH PROPERTY SHALL NOT BE SUBJECT TO ANY REQUIREMENT TO ENTER

S. 1509                            50                            A. 2009

INTO A CONTRACT FOR PAYMENTS IN LIEU OF TAXES IN ACCORDANCE WITH  SUBDI-
VISION  NINE  OF THIS SECTION, IF: (A) THE ENERGY SYSTEM IS INSTALLED ON
REAL PROPERTY THAT IS OWNED OR CONTROLLED BY THE STATE OF  NEW  YORK,  A
DEPARTMENT  OR  AGENCY  THEREOF,  OR  A  STATE AUTHORITY AS THAT TERM IS
DEFINED BY SUBDIVISION ONE OF SECTION TWO OF THE PUBLIC AUTHORITIES LAW;
AND (B) THE STATE OF NEW YORK, A DEPARTMENT  OR  AGENCY  THEREOF,  OR  A
STATE  AUTHORITY  AS  THAT TERM IS DEFINED BY SUBDIVISION ONE OF SECTION
TWO OF THE PUBLIC AUTHORITIES LAW HAS  AGREED  TO  PURCHASE  THE  ENERGY
PRODUCED  BY  SUCH  ENERGY SYSTEM OR THE ENVIRONMENTAL CREDITS OR ATTRI-
BUTES CREATED BY VIRTUE OF THE ENERGY SYSTEM'S OPERATION, IN  ACCORDANCE
WITH  A  WRITTEN  AGREEMENT  WITH  THE  OWNER OR OPERATOR OF SUCH ENERGY
SYSTEM. SUCH EXEMPTION SHALL BE GRANTED ONLY  UPON  APPLICATION  BY  THE
OWNER  OF  THE  REAL  PROPERTY ON A FORM PRESCRIBED BY THE COMMISSIONER,
WHICH APPLICATION SHALL BE FILED WITH THE ASSESSOR  OF  THE  APPROPRIATE
COUNTY,  CITY,  TOWN  OR VILLAGE ON OR BEFORE THE TAXABLE STATUS DATE OF
SUCH COUNTY, CITY, TOWN OR VILLAGE.
  § 2. This act shall take effect immediately.

                                 PART BB

  Section 1. Subdivision 1 of section 107  of  the  racing,  pari-mutuel
wagering and breeding law, as added by section 1 of part A of chapter 60
of the laws of 2012, is amended as follows:
  1.  No  person shall be appointed to or employed by the commission if,
during the period commencing three years prior to appointment or employ-
ment, [said] SUCH person held any direct or  indirect  interest  in,  or
employment  by, any corporation, association or person engaged in gaming
activity within the state. Prior  to  appointment  or  employment,  each
member, officer or employee of the commission shall swear or affirm that
he  or she possesses no interest in any corporation or association hold-
ing a franchise, license, registration, certificate or permit issued  by
the commission. Thereafter, no member or officer of the commission shall
hold  any  direct  interest in or be employed by any applicant for or by
any corporation, association or person holding a license,  registration,
franchise,  certificate  or permit issued by the commission for a period
of four years commencing on the date his  or  her  membership  with  the
commission  terminates.  Further,  no  employee  of  the  commission may
acquire any direct or indirect interest in, or accept  employment  with,
any  applicant  for or any person holding a license, registration, fran-
chise, certificate or permit issued by the commission for  a  period  of
two  years  commencing at the termination of employment with the commis-
sion.  THE COMMISSION MAY, BY RESOLUTION ADOPTED AT A  PROPERLY  NOTICED
PUBLIC   MEETING,  WAIVE  FOR  GOOD  CAUSE  ANY  OF  ITS  PRE-EMPLOYMENT
RESTRICTIONS FOR A PROSPECTIVE EMPLOYEE.
  § 2. This act shall take effect immediately.

                                 PART CC

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

S. 1509                            51                            A. 2009

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

                                 PART DD

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

                                SUBPART A

  Section 1. Sections 1368, 1369, 1370, and 1371 of the racing, pari-mu-
tuel  wagering  and  breeding law are renumbered sections 130, 131, 132,
and 133.
  § 2. Title 9 of article 13 of the  racing,  pari-mutuel  wagering  and
breeding law is REPEALED.
  § 3. Section 130 of the racing, pari-mutuel wagering and breeding law,
as added by chapter 174 of the laws of 2013 and as renumbered by section
one of this act, is amended to read as follows:
  §  130. Establishment of the office of gaming inspector general. There
is hereby created within the commission the office of  gaming  inspector
general.  The  head  of the office shall be the gaming inspector general
who shall be appointed by the  governor  by  and  with  the  advice  and
consent  of  the senate. The GAMING inspector general shall serve at the
pleasure of the governor. The  GAMING  inspector  general  shall  report
directly  to  the  governor.  The  person  appointed as GAMING inspector
general shall, upon his or her appointment, have not less than ten years
professional experience in law, investigation, or auditing.  The  GAMING
inspector general shall be compensated within the limits of funds avail-
able  therefor, provided, however, such salary shall be no less than the
salaries of certain state officers holding the  positions  indicated  in
paragraph  (a)  of  subdivision one of section one hundred sixty-nine of
the executive law.
  § 4. The section heading,  opening  paragraph  and  subdivision  7  of
section  131  of  the  racing, pari-mutuel wagering and breeding law, as
added by chapter 174 of the laws of 2013 and such section as  renumbered
by section one of this act, are amended to read as follows:
  [State  gaming]  GAMING  inspector  general; functions and duties. The
[state] gaming inspector general shall have  the  following  duties  and
responsibilities:

S. 1509                            52                            A. 2009

  7.  establish  programs for training commission officers and employees
[regarding] IN REGARD TO the prevention and elimination  of  corruption,
fraud,  criminal activity, conflicts of interest or abuse in the commis-
sion.
  §  5.  The opening paragraph of section 132 of the racing, pari-mutuel
wagering and breeding law, as added by chapter 174 of the laws  of  2013
and such section as renumbered by section one of this act, is amended to
read as follows:
  The [state] gaming inspector general shall have the power to:
  § 6. Section 133 of the racing, pari-mutuel wagering and breeding law,
as added by chapter 174 of the laws of 2013 and as renumbered by section
one of this act, is amended to read as follows:
  § 133. Responsibilities of the commission and its officers and employ-
ees.  1.  Every  commission officer or employee shall report promptly to
the  [state]  gaming  inspector  general  any   information   concerning
corruption,  fraud, criminal activity, conflicts of interest or abuse by
another state officer or employee relating  to  his  or  her  office  or
employment,  or by a person having business dealings with the commission
relating to those dealings.  The  knowing  failure  of  any  officer  or
employee  to so report shall be cause for removal from office or employ-
ment or other appropriate penalty under this  article.  Any  officer  or
employee  who  acts  pursuant  to  this  subdivision by reporting to the
[state] gaming inspector general or other  appropriate  law  enforcement
official  improper  governmental  action  as defined in section seventy-
five-b of the civil service law  shall  not  be  subject  to  dismissal,
discipline or other adverse personnel action.
  2.  The  commission chair shall advise the governor within ninety days
of the issuance of a report by the [state] gaming inspector  general  as
to  the remedial action that the commission has taken in response to any
recommendation for such action contained in such report.
  § 7. This act shall take effect immediately.

                                SUBPART B

  Section 1. Subdivision 1 of section 252  of  the  racing,  pari-mutuel
wagering and breeding law, as amended by section 11 of part A of chapter
60 of the laws of 2012, is amended to read as follows:
  1. A corporation to be known as the New York state thoroughbred breed-
ing and development fund corporation is hereby created. Such corporation
shall  be  a  body  corporate  and politic constituting a public benefit
corporation. It shall be administered by a board of directors consisting
of the chair of the state gaming commission or his or her designee,  the
commissioner  of  agriculture  and  markets,  three members of the state
gaming commission OR OTHER BONA FIDE RESIDENTS OF THE STATE WHO  HAVE  A
COGENT  INTEREST  IN  THE THOROUGHBRED BREEDING INDUSTRY IN THE STATE as
designated by the governor and six members appointed  by  the  governor,
all  of whom are experienced or have been actively engaged in the breed-
ing of thoroughbred horses in New York state, one, the president or  the
executive  director  of  the statewide thoroughbred breeders association
representing the majority of breeders of registered thoroughbreds in New
York state, one upon the recommendation of the majority  leader  of  the
senate,  one upon the recommendation of the speaker of the assembly, one
upon the recommendation of the minority leader of the  senate,  and  one
upon  the  recommendation of the minority leader of the assembly. Two of
the appointed members shall initially serve for a two year term, two  of
the  appointed  members  shall initially serve for a three year term and

S. 1509                            53                            A. 2009

two of the appointed members shall initially serve for a four year term.
All successors appointed members shall serve for a four year  term.  All
members  shall  continue  in  office  until  their  successors have been
appointed  and  qualified.  The  governor shall designate the chair from
among the sitting members who shall serve as such at the pleasure of the
governor.
  § 2. This act shall take effect immediately.

                                SUBPART C

  Section 1. Subdivision 1 of section 17 of the public officers  law  is
amended by adding a new paragraph (aa) to read as follows:
  (AA)  FOR  THE  PURPOSES  OF  THIS  SECTION, THE TERM "EMPLOYEE" SHALL
INCLUDE THE MEMBERS OF THE HARRY  M.  ZWEIG  MEMORIAL  FUND  FOR  EQUINE
RESEARCH COMMITTEE.
  §  2. Section 703 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 3 to read as follows:
  3. NOTWITHSTANDING THE PROVISIONS  OF  SECTION  ELEVEN  OF  THE  STATE
FINANCE  LAW  AND  ANY OTHER INCONSISTENT PROVISION OF LAW, THE FUND MAY
ACQUIRE PROPERTY BY THE ACCEPTANCE OF CONDITIONAL GIFTS, GRANTS, DEVISES
OR BEQUESTS GIVEN IN FURTHERANCE OF THE MISSION OF THE FUND.
  § 3. This act shall take effect immediately.

                                SUBPART D

  Section 1. Paragraph 2 of subdivision a of section  1612  of  the  tax
law,  as  amended by chapter 174 of the laws of 2013, is amended to read
as follows:
  (2) [sixty-five] SIXTY-FOUR AND ONE-FOURTH percent of the total amount
for which tickets have been sold for the "Instant Cash"  game  in  which
the participant purchases a preprinted ticket on which dollar amounts or
symbols  are  concealed on the face or the back of such ticket, provided
however up to five new games may be  offered  during  the  fiscal  year,
[seventy-five]  SEVENTY-FOUR  AND ONE-FOURTH percent of the total amount
for which tickets have been sold  for  such  five  games  in  which  the
participant  purchases  a  preprinted  ticket on which dollar amounts or
symbols are concealed on the face or the back of such ticket; or
  § 2. The opening paragraph of paragraph 1 of subdivision b of  section
1612  of  the tax law, as amended by chapter 174 of the laws of 2013, is
amended to read as follows:
  Notwithstanding section one hundred twenty-one of  the  state  finance
law,  on  or  before  the  twentieth  day  of each month, the [division]
COMMISSION shall pay into the state treasury, to the credit of the state
lottery fund created by section ninety-two-c of the state  finance  law,
NOT  LESS  THAN FORTY-FIVE PERCENT OF THE TOTAL AMOUNT FOR WHICH TICKETS
HAVE BEEN SOLD FOR GAMES DEFINED IN PARAGRAPH FIVE OF SUBDIVISION  A  OF
THIS  SECTION  DURING  THE  PRECEEDING MONTH, not less than [forty-five]
THIRTY-FIVE percent of the total amount for which tickets have  be  sold
for  games  defined  in  paragraph four of subdivision a of this section
during the preceding month, not less than [thirty-five]  THIRTY  percent
of  the  total amount for which tickets have been sold for games defined
in paragraph three of subdivision a of this section during the preceding
month, not less than twenty  AND  THREE-FOURTHS  percent  of  the  total
amount  for  which tickets have been sold for games defined in paragraph
two of subdivision  a  of  this  section  during  the  preceding  month,
provided  however  that  for games with a prize payout of [seventy-five]

S. 1509                            54                            A. 2009

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

                                 PART EE

  Section  1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision
b of section 1612 of the tax law are REPEALED and two new  subparagraphs
(ii) and (iii) are added to read as follows:
  (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING
AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA-
TOR  OF  ANY  OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO
SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE. THE AMOUNT  OF  THE
VENDOR'S FEE SHALL BE CALCULATED AS FOLLOWS:
  (A)  WHEN  A  VENDOR  TRACK  IS LOCATED WITHIN DEVELOPMENT ZONE ONE AS
DEFINED BY SECTION THIRTEEN  HUNDRED  TEN  OF  THE  RACING,  PARI-MUTUEL
WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT

S. 1509                            55                            A. 2009

OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
PURSUANT TO THIS CHAPTER;
  (B)  WHEN  A  VENDOR  TRACK  IS  LOCATED WITHIN ZONE TWO AS DEFINED BY
SECTION THIRTEEN HUNDRED TEN OF THE  RACING,  PARI-MUTUEL  WAGERING  AND
BREEDING  LAW, THE RATE OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK
AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE AS FOLLOWS:
  (1) FORTY-THREE AND ONE-HALF PERCENT FOR A VENDOR TRACK  LOCATED  MORE
THAN  FIFTEEN  MILES BUT LESS THAN FIFTY MILES FROM A DESTINATION RESORT
GAMING FACILITY AUTHORIZED PURSUANT TO ARTICLE THIRTEEN OF  THE  RACING,
PARI-MUTUEL WAGERING AND BREEDING LAW;
  (2)  FORTY-NINE PERCENT FOR A VENDOR TACK LOCATED WITHIN FIFTEEN MILES
OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED PURSUANT  TO  ARTICLE
THIRTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW;
  (3) FIFTY-ONE PERCENT FOR VENDOR TRACK LOCATED MORE THAN FIFTEEN MILES
BUT LESS THAN FIFTY MILES FROM A NATIVE AMERICAN CLASS III GAMING FACIL-
ITY AS DEFINED IN 25 U.S.C. §2703(8);
  (4)  FIFTY-SIX PERCENT FOR A VENDOR TRACK LOCATED WITHIN FIFTEEN MILES
OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED  IN  25  U.S.C
§2703(8);
  (B-1)  NOTWITHSTANDING  SUBPARAGRAPH  (B)  OF  THIS PARAGRAPH, FOR THE
PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN  AND  ENDING  ON
MARCH  THIRTY-FIRST,  TWO  THOUSAND  TWENTY,  FOR A VENDOR TRACK THAT IS
LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-SEVEN AND
ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK  AFTER
PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
  (B-2)  NOTWITHSTANDING  SUBPARAGRAPH  (B)  OF  THIS PARAGRAPH, FOR THE
PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND NINETEEN  AND  ENDING  ON
MARCH  THIRTY-FIRST  TWO  THOUSAND  TWENTY,  FOR  A VENDOR TRACK THAT IS
LOCATED WITHIN SARATOGA COUNTY, SUCH VENDOR FEE SHALL BE THIRTY-NINE AND
ONE-HALF PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK  AFTER
PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
  (C) WHEN A VIDEO LOTTERY FACILITY IS LOCATED AT AQUEDUCT RACETRACK, AT
A  RATE  OF  FIFTY  PERCENT  OF  THE  TOTAL REVENUE WAGERED AT THE VIDEO
LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO  THIS  CHAP-
TER;
  (D)  WHEN  A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU
OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED  PURSU-
ANT  TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND
BREEDING LAW, AT A RATE OF  FORTY-FIVE  PERCENT  OF  THE  TOTAL  REVENUE
WAGERED  AT  THE  VIDEO  LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES
PURSUANT TO THIS CHAPTER.
  (III) LESS ANY ADDITIONAL  VENDOR'S  FEES.  ADDITIONAL  VENDOR'S  FEES
SHALL BE CALCULATED AS FOLLOWS:
  (A)  FOR A VENDOR TRACK THAT IS LOCATED WITHIN SULLIVAN COUNTY, WITHIN
DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN  OF  THE
RACING,  PARI-MUTUEL  WAGERING  AND BREEDING LAW, SUCH ADDITIONAL VENDOR
FEE SHALL BE FIFTEEN AND ONE-TENTH PERCENT OF THE TOTAL REVENUE  WAGERED
AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
  (B)  FOR  A VENDOR TRACK THAT IS LOCATED WITHIN ONTARIO COUNTY, WITHIN
DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN  OF  THE
RACING,  PARI-MUTUEL  WAGERING  AND BREEDING LAW, SUCH ADDITIONAL VENDOR
FEE SHALL BE TEN PERCENT OF THE TOTAL  REVENUE  WAGERED  AT  THE  VENDOR
TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
  (C)  FOR A VENDOR TRACK THAT IS LOCATED WITHIN SARATOGA COUNTY, WITHIN
DEVELOPMENT ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN  OF  THE
RACING,  PARI-MUTUEL  WAGERING  AND BREEDING LAW, SUCH ADDITIONAL VENDOR

S. 1509                            56                            A. 2009

FEE SHALL BE TEN PERCENT OF THE TOTAL  REVENUE  WAGERED  AT  THE  VENDOR
TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
  (D)  FOR  A  VENDOR TRACK THAT IS LOCATED WITHIN ONEIDA COUNTY, WITHIN
FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, SUCH ADDI-
TIONAL VENDOR FEE SHALL BE SIX AND  FOUR-TENTHS  PERCENT  OF  THE  TOTAL
REVENUE  WAGERED  AT THE VENDOR AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
CHAPTER. THE VENDOR TRACK SHALL FORFEIT THIS ADDITIONAL VENDOR  FEE  FOR
ANY  TIME PERIOD THAT THE VENDOR TRACK DOES NOT MAINTAIN AT LEAST NINETY
PERCENT OF FULL-TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN  THE  YEAR
TWO THOUSAND SIXTEEN.
  § 2. Subdivision b of section 1612 of the tax law is amended by adding
three new paragraphs 1-a, 1-b, and 1-c to read as follows:
  1-A.  (I)  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, ANY
OPERATORS OF A VENDOR TRACK OR THE OPERATORS OF ANY OTHER VIDEO  LOTTERY
GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR-
TY-FIRST, TWO THOUSAND EIGHTEEN SHALL DEPOSIT FROM THEIR VENDOR FEE INTO
A  SEGREGATED  ACCOUNT  AN  AMOUNT  EQUAL  TO  FOUR PERCENT OF THE FIRST
SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF  REVENUE  WAGERED  AT
THE  VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE
USED EXCLUSIVELY FOR CAPITAL INVESTMENTS,  EXCEPT  FOR  AQUEDUCT,  WHICH
SHALL  DEPOSIT  INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO ONE PERCENT
OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT
FOR PRIZES PURSUANT TO THIS CHAPTER UNTIL THE EARLIER OF THE DESIGNATION
OF ONE THOUSAND VIDEO LOTTERY DEVICES AS HOSTED  PURSUANT  TO  PARAGRAPH
FOUR  OF  SUBDIVISION  A  OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS
ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, WHEN AT  SUCH  TIME  FOUR
PERCENT  OF  ALL  REVENUE  WAGERED  AT THE VIDEO LOTTERY GAMING FACILITY
AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO
A SEGREGATED ACCOUNT FOR CAPITAL INVESTMENTS.
  (II) VENDOR TRACKS  AND  VIDEO  LOTTERY  GAMING  FACILITIES  SHALL  BE
PERMITTED  TO  WITHDRAW FUNDS FOR PROJECTS APPROVED BY THE COMMISSION TO
IMPROVE THE FACILITIES OF THE  VENDOR  TRACK  OR  VIDEO  LOTTERY  GAMING
FACILITY  WHICH  ENHANCE  OR  MAINTAIN THE VIDEO LOTTERY GAMING FACILITY
INCLUDING, BUT NOT LIMITED TO HOTELS, OTHER LODGING  FACILITIES,  ENTER-
TAINMENT   FACILITIES,  RETAIL  FACILITIES,  DINING  FACILITIES,  EVENTS
ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS AND  AMENITIES  CUSTOMARY
TO  A  GAMING  FACILITY,  PROVIDED, HOWEVER, THE VENDOR TRACKS AND VIDEO
LOTTERY GAMING FACILITIES SHALL BE PERMITTED TO WITHDRAW FUNDS FOR UNRE-
IMBURSED CAPITAL AWARDS APPROVED PRIOR TO THE  EFFECTIVE  DATE  OF  THIS
SUBPARAGRAPH.
  (III) ANY PROCEEDS FROM THE DIVESTITURE OF ANY ASSETS ACQUIRED THROUGH
THESE  CAPITAL  FUNDS  OR ANY PRIOR CAPITAL AWARD MUST BE DEPOSITED INTO
THIS SEGREGATED ACCOUNT, PROVIDED THAT IF  THE  VENDOR  TRACK  OR  VIDEO
LOTTERY  GAMING FACILITY CEASES USE OF SUCH ASSET FOR GAMING PURPOSES OR
TRANSFERS THE ASSET TO A RELATED  PARTY,  SUCH  VENDOR  TRACK  OR  VIDEO
LOTTERY GAMING FACILITY SHALL DEPOSIT AN AMOUNT EQUAL TO THE FAIR MARKET
VALUE OF THAT ASSET INTO THE ACCOUNT.
  (IV)  IN  THE  EVENT  A  VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY
CEASES GAMING OPERATIONS, ANY BALANCE  IN  THE  ACCOUNT  ALONG  WITH  AN
AMOUNT  EQUAL TO THE VALUE OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS
FUND OR PRIOR CAPITAL AWARDS SHALL BE RETURNED TO THE STATE FOR  DEPOSIT
INTO  THE  STATE  LOTTERY  FUND  FOR EDUCATION AID, EXCEPT FOR AQUEDUCT,
WHICH SHALL RETURN TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY  FUND
FOR  EDUCATION  AID ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A
PROJECT PURSUANT TO AN AGREEMENT  WITH  THE  OPERATOR  TO  CONSTRUCT  AN
EXPANSION  OF  THE  FACILITY, HOTEL, AND CONVENTION AND EXHIBITION SPACE

S. 1509                            57                            A. 2009

REQUIRING A MINIMUM CAPITAL INVESTMENT OF THREE HUNDRED MILLION  DOLLARS
AND ANY SUBSEQUENT AMENDMENTS TO SUCH AGREEMENT.
  (V)  THE  COMPTROLLER  OR  HIS  LEGALLY  AUTHORIZED  REPRESENTATIVE IS
AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE OUT  OF  THESE  SEGRE-
GATED CAPITAL ACCOUNTS.
  (VI) NOTWITHSTANDING  SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH,
A  VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP TO TWO MILLION
DOLLARS FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF  COURSE
AT THE VENDOR TRACK.
  (VII)  ANY  BALANCE REMAINING IN THE CAPITAL AWARD ACCOUNT OF A VENDOR
TRACK OR OPERATOR OR ANY OTHER VIDEO LOTTERY GAMING FACILITY AS OF MARCH
THIRTY-FIRST, TWO THOUSAND NINETEEN SHALL  BE  TRANSFERRED  FOR  DEPOSIT
INTO A SEGREGATED ACCOUNT ESTABLISHED BY THIS SUBPARAGRAPH.
  1-B.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, FREE PLAY
ALLOWANCE CREDITS AUTHORIZED BY THE DIVISION PURSUANT TO  SUBDIVISION  I
OF  SECTION  SIXTEEN  HUNDRED  SEVENTEEN-A  OF THIS ARTICLE SHALL NOT BE
INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
GAMES, THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR  FEES
PAYABLE  TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES PAYA-
BLE TO THE DIVISION'S VIDEO LOTTERY  GAMING  EQUIPMENT  CONTRACTORS,  OR
RACING SUPPORT PAYMENTS.
  1-C.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERA-
TOR OF A VENDOR TRACK OR THE OPERATOR OF ANY OTHER VIDEO LOTTERY  GAMING
FACILITY  SHALL  FUND  A  MARKETING  AND  PROMOTION  PROGRAM  OUT OF THE
VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL  MARKETING  PLAN  FOR
THE  REVIEW  AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU-
MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE  COMMISSION.
THE  COMMISSION  SHALL  HAVE  THE  RIGHT  TO REJECT ANY ADVERTISEMENT OR
PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR  INTERESTS  OF
THE LOTTERY OR ITS PROGRAMS.
  § 3. This act shall take effect immediately; provided, however, claus-
es  (A), (B) and (C) of subparagraph (iii) of paragraph 1 of subdivision
b of section 1612 of the tax law as added by section  one  of  this  act
shall  take effect April 1, 2020 and shall expire and be deemed repealed
on March 31, 2023; and provided, however,  clause  (D)  of  subparagraph
(iii)  of paragraph 1 of subdivision b of section 1612 of the tax law as
added by section one of this act shall take effect  June  30,  2019  and
shall expire and be deemed repealed March 31, 2023.

                                 PART FF

  Section  1.  Subdivision 25 of section 1301 of the racing, pari-mutuel
wagering and breeding law, as added by chapter 174 of the laws of  2013,
is amended to read as follows:
  25. "Gross gaming revenue". The total of all sums actually received by
a  gaming facility licensee from gaming operations less the total of all
sums paid out as winnings to patrons; provided, however, that the  total
of  all  sums paid out as winnings to patrons shall not include the cash
equivalent value of any merchandise or thing  of  value  included  in  a
jackpot  or  payout[; provided further, that the issuance to or wagering
by patrons of a gaming facility of any promotional gaming  credit  shall
not be taxable for the purposes of determining gross revenue].
  § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 2 to read as follows:
  2. PERMISSIBLE DEDUCTIONS. (A) A GAMING FACILITY MAY DEDUCT FROM GROSS
GAMING  REVENUE THE AMOUNT OF APPROVED PROMOTIONAL GAMING CREDITS ISSUED

S. 1509                            58                            A. 2009

TO AND WAGERED BY  PATRONS  OF  SUCH  GAMING  FACILITY.  THE  AMOUNT  OF
APPROVED PROMOTIONAL CREDITS SHALL BE CALCULATED AS FOLLOWS:
  (1)  FOR  THE  PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND EIGHTEEN
AND ENDING ON MARCH THIRTY-FIRST,  TWO  THOUSAND  TWENTY,  AN  AGGREGATE
MAXIMUM  AMOUNT  EQUAL  TO  NINETEEN  PERCENT  OF THE BASE TAXABLE GROSS
GAMING REVENUE AMOUNT DURING THE SPECIFIED PERIOD;
  (2) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY  AND
ENDING  ON  MARCH  THIRTY-FIRST,  TWO  THOUSAND  TWENTY-THREE, A MAXIMUM
AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVEN-
UE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD; AND
  (3) FOR THE PERIOD COMMENCING ON APRIL  FIRST,  TWO  THOUSAND  TWENTY-
THREE  AND  THEREAFTER, A MAXIMUM AMOUNT EQUAL TO FIFTEEN PERCENT OF THE
BASE TAXABLE GROSS GAMING REVENUE AMOUNT FOR EACH FISCAL YEAR DURING THE
SPECIFIED PERIOD.
  (B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION,  "BASE  TAXABLE
GROSS  GAMING REVENUE AMOUNT" MEANS THAT PORTION OF GROSS GAMING REVENUE
NOT ATTRIBUTABLE TO DEDUCTIBLE PROMOTIONAL CREDIT.
  (C) ANY TAX DUE ON PROMOTIONAL CREDITS DEDUCTED DURING THE FISCAL YEAR
IN EXCESS OF THE ALLOWABLE DEDUCTION SHALL BE PAID  WITHIN  THIRTY  DAYS
FROM THE END OF THE FISCAL YEAR.
  (D)  ONLY  PROMOTIONAL  CREDITS  THAT ARE ISSUED PURSUANT TO A WRITTEN
PLAN APPROVED BY THE COMMISSION AS DESIGNED TO INCREASE REVENUE  AT  THE
FACILITY MAY BE ELIGIBLE FOR SUCH DEDUCTION. THE COMMISSION, IN CONJUNC-
TION  WITH  THE DIRECTOR OF THE BUDGET, MAY SUSPEND APPROVAL OF ANY PLAN
WHENEVER THEY JOINTLY DETERMINE THAT THE USE OF THE PROMOTIONAL  CREDITS
UNDER  SUCH  PLAN  IS  NOT EFFECTIVE IN INCREASING THE AMOUNT OF REVENUE
EARNED.
  § 3. This act shall take effect immediately.

                                 PART GG

  Section 1. Subdivision 12 of section 502 of  the  racing,  pari-mutuel
wagering and breeding law is amended to read as follows:
  12.  A.  The  board of directors shall hold an annual meeting AND MEET
NOT LESS THAN QUARTERLY.
  B. EACH BOARD MEMBER SHALL  RECEIVE,  NOT  LESS  THAN  SEVEN  DAYS  IN
ADVANCE  OF  A  MEETING, DOCUMENTATION NECESSARY TO ENSURE KNOWLEDGEABLE
AND ENGAGED PARTICIPATION. SUCH  DOCUMENTATION  SHALL  INCLUDE  MATERIAL
RELEVANT  TO  EACH  AGENDA  ITEM  INCLUDING  BACKGROUND  INFORMATION  OF
DISCUSSION ITEMS, RESOLUTIONS TO BE CONSIDERED AND ASSOCIATED DOCUMENTS,
A MONTHLY FINANCIAL STATEMENT WHICH SHALL INCLUDE AN UPDATED  CASH  FLOW
STATEMENT  AND  AGED  PAYABLE  LISTING  OF  INDUSTRY PAYABLES, FINANCIAL
STATEMENTS, MANAGEMENT REPORTS, COMMITTEE REPORTS AND COMPLIANCE ITEMS.
  C. STAFF OF THE CORPORATION SHALL ANNUALLY SUBMIT  TO  THE  BOARD  FOR
APPROVAL  A  FINANCIAL PLAN ACCOMPANIED BY EXPENDITURE, REVENUE AND CASH
FLOW PROJECTIONS. THE PLAN SHALL  CONTAIN  PROJECTION  OF  REVENUES  AND
EXPENDITURES BASED ON REASONABLE AND APPROPRIATE ASSUMPTIONS AND METHODS
OF  ESTIMATIONS,  AND  SHALL  PROVIDE  THAT OPERATIONS WILL BE CONDUCTED
WITHIN THE CASH RESOURCES  AVAILABLE.  THE  FINANCIAL  PLAN  SHALL  ALSO
INCLUDE  INFORMATION  REGARDING  PROJECTED EMPLOYMENT LEVELS, COLLECTIVE
BARGAINING AGREEMENTS AND OTHER  ACTIONS  RELATING  TO  EMPLOYEE  COSTS,
CAPITAL CONSTRUCTION AND SUCH OTHER MATTERS AS THE BOARD MAY DIRECT.
  D. STAFF OF THE CORPORATION SHALL PREPARE AND SUBMIT TO THE BOARD ON A
QUARTERLY  BASIS  A  REPORT  OF SUMMARIZED BUDGET DATA DEPICTING OVERALL
TRENDS, BY MAJOR CATEGORY WITHIN FUNDS, OF ACTUAL  REVENUES  AND  BUDGET
EXPENDITURES FOR THE ENTIRE BUDGET RATHER THAN INDIVIDUAL LINE ITEMS, AS

S. 1509                            59                            A. 2009

WELL  AS  UPDATED  QUARTERLY  CASH  FLOW  PROJECTIONS  OF  RECEIPTS  AND
DISBURSEMENTS. SUCH REPORTS SHALL COMPARE REVENUE ESTIMATES  AND  APPRO-
PRIATIONS  AS  SET FORTH IN SUCH BUDGET AND IN THE QUARTERLY REVENUE AND
EXPENDITURE  PROJECTIONS  SUBMITTED  THEREWITH, WITH THE ACTUAL REVENUES
AND EXPENDITURES MADE TO DATE. SUCH REPORTS SHALL  ALSO  COMPARE  ACTUAL
RECEIPTS AND DISBURSEMENTS WITH THE ESTIMATES CONTAINED IN THE CASH FLOW
PROJECTIONS, TOGETHER WITH VARIANCES AND THEIR EXPLANATION. ALL QUARTER-
LY  REPORTS  SHALL  BE ACCOMPANIED BY RECOMMENDATIONS FROM THE PRESIDENT
SETTING FORTH ANY REMEDIAL ACTION NECESSARY TO RESOLVE  ANY  UNFAVORABLE
BUDGET  VARIANCE INCLUDING THE OVERESTIMATION OF REVENUES AND THE UNDER-
ESTIMATION OF APPROPRIATIONS. THESE REPORTS SHALL  BE  COMPLETED  WITHIN
THIRTY  DAYS AFTER THE END OF EACH QUARTER AND SHALL BE SUBMITTED TO THE
BOARD BY THE CORPORATION COMPTROLLER.
  E. REVENUE ESTIMATES AND THE FINANCIAL PLAN SHALL BE REGULARLY REEXAM-
INED BY THE BOARD AND STAFF AND SHALL PROVIDE A MODIFIED FINANCIAL  PLAN
IN SUCH DETAIL AND WITHIN SUCH TIME PERIODS AS THE BOARD MAY REQUIRE. IN
THE  EVENT  OF  REDUCTIONS  IN  SUCH  REVENUE ESTIMATES, THE BOARD SHALL
CONSIDER  AND  APPROVE  SUCH  ADJUSTMENTS  IN  REVENUE   ESTIMATES   AND
REDUCTIONS  IN TOTAL EXPENDITURES AS MAY BE NECESSARY TO CONFORM TO SUCH
REVISED REVENUE ESTIMATES OR AGGREGATE EXPENDITURE LIMITATIONS.
  § 2. Section 503 of the racing, pari-mutuel wagering and breeding  law
is amended by adding a new subdivision 15 to read as follows:
  15.  NOTWITHSTANDING  ANY  INCONSISTENT  PROVISION  OF LAW, A REGIONAL
OFF-TRACK BETTING CORPORATION MAY, PURSUANT TO A WRITTEN PLAN AND AGREE-
MENT WITH ANOTHER REGIONAL OFF-TRACK BETTING CORPORATION APPROVED BY THE
COMMISSION, ASSUME THE OFF-TRACK BETTING OPERATIONS AUTHORIZED BY  ARTI-
CLE  FIVE-A  OF  THIS  CHAPTER  OF  THE OTHER REGIONAL OFF-TRACK BETTING
CORPORATION. DURING THE DURATION OF ANY SUCH AGREEMENT, THE  REGIONS  OF
ANY  REGIONAL OFF-TRACK BETTING CORPORATIONS, AS DEFINED BY SECTION FIVE
HUNDRED NINETEEN OF THIS CHAPTER SHALL  BE  DEEMED  COMBINED,  PROVIDED,
HOWEVER,  THE  COMBINING  OF  SUCH REGIONS SHALL NOT IMPACT THE AUTHORI-
ZATION OF A REGIONAL OFF-TRACK BETTING  CORPORATION  RELINQUISHING  OFF-
TRACK  BETTING  OPERATIONS TO BE INCORPORATED, EXERCISE OTHER POWERS, OR
TO CONDUCT ANY OTHER ACTIVITIES PERMITTED OR AUTHORIZED BY LAW.
  § 3. Subdivision 2-a of section 1009 of the racing, pari-mutuel wager-
ing and breeding law, is amended by adding a new paragraph (c)  to  read
as follows:
  (C)  THE  BOARD  MAY  AUTHORIZE  A SPECIAL DEMONSTRATION PROJECT TO BE
LOCATED IN ANY FACILITY LICENSED PURSUANT TO ARTICLE  THIRTEEN  OF  THIS
CHAPTER.  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION
FIVE OF THIS SECTION, AN ADMISSION FEE  SHALL  NOT  BE  REQUIRED  FOR  A
DEMONSTRATION PROJECT AUTHORIZED IN THIS PARAGRAPH. PROVIDED HOWEVER, ON
ANY  DAY  WHEN  A REGIONAL HARNESS TRACK CONDUCTS A LIVE RACE MEETING, A
DEMONSTRATION FACILITY WITHIN THAT REGION  SHALL  PREDOMINANTLY  DISPLAY
THE LIVE VIDEO OF SUCH REGIONAL HARNESS TRACK.
  § 4. This act shall take effect immediately.

                                 PART HH

  Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  1
of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
follows:
  (a) Any  racing  association  or  corporation  or  regional  off-track
betting  corporation,  authorized  to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on  which

S. 1509                            60                            A. 2009

pari-mutuel  betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to the commission  for
a  license  so to do. Applications for licenses shall be in such form as
may  be  prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No  license
shall be issued by the commission authorizing the simulcast transmission
of  thoroughbred  races  from a track located in Suffolk county. The fee
for such licenses shall be five hundred dollars per  simulcast  facility
and  for  account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
a licensed racetrack within the state, twenty thousand dollars per  year
payable  by  the licensee to the commission for deposit into the general
fund. Except as provided in  this  section,  the  commission  shall  not
approve any application to conduct simulcasting into individual or group
residences,  homes  or  other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting  into
residences,  homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of  the  follow-
ing:  a  franchised  corporation,  thoroughbred  racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is  authorized
by  this  chapter  at  one  or more simulcast facilities for each of the
contracting off-track betting corporations which  shall  include  wagers
made  in  accordance  with  section  one  thousand fifteen, one thousand
sixteen and one thousand seventeen of  this  article;  provided  further
that  the  contract  provisions or other simulcast arrangements for such
simulcast facility shall be no less favorable than those  in  effect  on
January  first,  two  thousand  five;  (ii)  that each off-track betting
corporation having within its  geographic  boundaries  such  residences,
homes  or  other  areas  technically  capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of  revenues
shall  be  subject  to  contractual agreement of the parties except that
statutory payments to  non-contracting  parties,  if  any,  may  not  be
reduced;  provided,  however,  that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall  not  apply.  Any  agreement  authorizing  an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended until June
thirtieth,  two thousand [nineteen] TWENTY-FOUR; provided, however, that
any party to such agreement may elect to terminate such  agreement  upon
conveying written notice to all other parties of such agreement at least
forty-five  days  prior  to  the  effective date of the termination, via
registered mail. Any party to an agreement receiving such notice  of  an
intent  to  terminate, may request the commission to mediate between the
parties new terms and conditions in a replacement agreement between  the
parties  as will permit continuation of an in-home experiment until June
thirtieth, two thousand [nineteen]  TWENTY-FOUR;  and  (iv)  no  in-home
simulcasting  in  the  thoroughbred special betting district shall occur
without the approval of the regional thoroughbred track.
  § 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section  2  of  part GG of chapter 59 of the laws of 2018, is amended to
read as follows:

S. 1509                            61                            A. 2009

  (iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for  the  period
commencing January first, two thousand eight and continuing through June
thirtieth,  two  thousand [nineteen] TWENTY-FOUR, the amount used exclu-
sively  for  purses  to  be awarded at races conducted by such receiving
track shall be computed as follows: of the sums  so  retained,  two  and
one-half  percent  of the total pools. Such amount shall be increased or
decreased in the amount of fifty percent  of  the  difference  in  total
commissions  determined  by  comparing  the  total commissions available
after July twenty-first,  nineteen  hundred  ninety-five  to  the  total
commissions  that  would have been available to such track prior to July
twenty-first, nineteen hundred ninety-five.
  § 3. The opening paragraph of subdivision 1 of  section  1014  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 3
of part GG of chapter 59 of the laws of 2018,  is  amended  to  read  as
follows:
  The  provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country  on
any day during which a franchised corporation is conducting a race meet-
ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [nineteen] TWENTY-FOUR and on any day regardless
of whether or not a franchised corporation is conducting a race  meeting
in Saratoga county at Saratoga thoroughbred racetrack after June thirti-
eth,  two  thousand  [nineteen] TWENTY-FOUR. On any day on which a fran-
chised corporation has not scheduled a racing program but a thoroughbred
racing corporation located within the state is conducting racing,  every
off-track  betting  corporation  branch  office  and  every simulcasting
facility licensed in accordance with section one  thousand  seven  (that
[have]  HAS entered into a written agreement with such facility's repre-
sentative horsemen's organization, as approved by the  commission),  one
thousand eight, or one thousand nine of this article shall be authorized
to accept wagers and display the live simulcast signal from thoroughbred
tracks  located  in  another  state  or  foreign  country subject to the
following provisions:
  § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part GG of  chapter  59  of
the laws of 2018, is amended to read as follows:
  1.  The  provisions  of  this section shall govern the simulcasting of
races conducted at harness tracks located in another  state  or  country
during  the period July first, nineteen hundred ninety-four through June
thirtieth, two  thousand  [nineteen]  TWENTY-FOUR.  This  section  shall
supersede all inconsistent provisions of this chapter.
  §  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  5
of  part  GG  of  chapter  59 of the laws of 2018, is amended to read as
follows:
  The provisions of this section shall govern the simulcasting of  races
conducted  at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting  a  race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth,  two thousand [nineteen] TWENTY-FOUR. Every off-track betting
corporation branch office and every simulcasting  facility  licensed  in
accordance  with  section  one  thousand  seven that have entered into a
written agreement with such facility's representative horsemen's  organ-
ization  as  approved by the commission, one thousand eight or one thou-
sand nine of this article shall  be  authorized  to  accept  wagers  and

S. 1509                            62                            A. 2009

display  the  live  full-card  simulcast  signal  of thoroughbred tracks
(which may include quarter horse or mixed  meetings  provided  that  all
such wagering on such races shall be construed to be thoroughbred races)
located  in  another  state or foreign country, subject to the following
provisions; provided,  however,  no  such  written  agreement  shall  be
required of a franchised corporation licensed in accordance with section
one thousand seven of this article:
  §  6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of part GG of chapter
59 of the laws of 2018, is amended to read as follows:
  Notwithstanding any other provision of this chapter,  for  the  period
July  twenty-fifth, two thousand one through September eighth, two thou-
sand [eighteen] TWENTY-THREE, when a franchised corporation is  conduct-
ing  a race meeting within the state at Saratoga Race Course, every off-
track betting corporation branch office and every simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into  a written agreement with such facility's representative horsemen's
organization as approved by the commission), one thousand eight  or  one
thousand  nine  of this article shall be authorized to accept wagers and
display the live simulcast signal from thoroughbred  tracks  located  in
another  state, provided that such facility shall accept wagers on races
run at all in-state thoroughbred  tracks  which  are  conducting  racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  §  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting, as amended by section 7 of part GG of chapter  59  of  the
laws of 2018, is amended to read as follows:
  §  32.  This act shall take effect immediately and the pari-mutuel tax
reductions in section six  of  this  act  shall  expire  and  be  deemed
repealed  on  July  1,  [2019]  2024;  provided,  however,  that nothing
contained herein shall be deemed to affect the  application,  qualifica-
tion,  expiration,  or  repeal  of  any  provision of law amended by any
section of this act, and such provisions shall be applied  or  qualified
or  shall  expire  or be deemed repealed in the same manner, to the same
extent and on the same date as the case may be as otherwise provided  by
law;  provided  further, however, that sections twenty-three and twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
  § 8. Section 54 of chapter 346 of  the  laws  of  1990,  amending  the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting  and the imposition of certain taxes, as amended by section
8 of part GG of chapter 59 of the laws of 2018, is amended  to  read  as
follows:
  §  54.  This  act  shall  take  effect immediately; provided, however,
sections three through twelve of this act shall take effect  on  January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing  law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2019] 2024; and section eighteen of  this
act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772  of
the laws of 1989 took effect.
  §  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9  of  part
GG of chapter 59 of the laws of 2018, is amended to read as follows:

S. 1509                            63                            A. 2009

  (a)  The  franchised  corporation  authorized  under  this  chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders  of
winning  tickets therein, provided such tickets be presented for payment
before  April  first  of  the year following the year of their purchase,
less an amount which shall be established and  retained  by  such  fran-
chised  corporation  of  between  twelve  to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and  four-
teen  to  twenty-one per centum of the total deposits in pools resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
total deposits in pools resulting from on-track exotic bets and  fifteen
to  thirty-six  per centum of the total deposits in pools resulting from
on-track super exotic bets, plus the breaks. The retention  rate  to  be
established is subject to the prior approval of the gaming commission.
  Such rate may not be changed more than once per calendar quarter to be
effective  on  the  first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have  the  meanings  set  forth  in  section  five
hundred  nineteen  of  this  chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred  one  of  this  chapter.  For
purposes  of  this  section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one  dollar
five  cents  but  less  than  five dollars, over any multiple of ten for
payoffs greater than five dollars but  less  than  twenty-five  dollars,
over  any  multiple  of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the  amount  so
retained  there  shall  be  paid  by  such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by  the  state
for  the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such  franchised  corporation,  the  following
percentages  of  the  total  pool for regular and multiple bets five per
centum of regular bets and four per centum of multiple bets plus  twenty
per  centum  of  the  breaks;  for  exotic wagers seven and one-half per
centum plus twenty per centum of the breaks, and for super  exotic  bets
seven and one-half per centum plus fifty per centum of the breaks.
  For  the  period  June  first,  nineteen  hundred  ninety-five through
September ninth, nineteen  hundred  ninety-nine,  such  tax  on  regular
wagers  shall  be three per centum and such tax on multiple wagers shall
be two and one-half per centum, plus twenty per centum  of  the  breaks.
For  the  period  September  tenth, nineteen hundred ninety-nine through
March thirty-first, two thousand one, such tax on all  wagers  shall  be
two  and six-tenths per centum and for the period April first, two thou-
sand one through December thirty-first, two thousand [nineteen]  TWENTY-
FOUR,  such  tax  on  all wagers shall be one and six-tenths per centum,
plus, in each such period, twenty per centum of the breaks.  Payment  to
the  New  York  state thoroughbred breeding and development fund by such
franchised corporation shall be one-half of  one  per  centum  of  total
daily  on-track  pari-mutuel  pools resulting from regular, multiple and
exotic bets and three per centum of super exotic bets provided, however,
that for  the  period  September  tenth,  nineteen  hundred  ninety-nine
through  March  thirty-first,  two  thousand  one, such payment shall be
six-tenths of one per centum of regular, multiple and exotic  pools  and
for  the  period  April first, two thousand one through December thirty-
first, two  thousand  [nineteen]  TWENTY-FOUR,  such  payment  shall  be
seven-tenths of one per centum of such pools.

S. 1509                            64                            A. 2009

  § 10. This act shall take effect immediately.

                                 PART II

  Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
amended by adding a new article XI-A to read as follows:
                              ARTICLE XI-A
                    INTERSTATE COMPACT ON ANTI-DOPING
                       AND DRUG TESTING STANDARDS
SECTION 1113. PURPOSES.
        1114. DEFINITIONS.
        1115. COMPOSITION AND MEETINGS OF COMPACT COMMISSION.
        1116. OPERATION OF COMPACT COMMISSION.
        1117. GENERAL POWERS AND DUTIES.
        1118. OTHER POWERS AND DUTIES.
        1119. COMPACT RULE MAKING.
        1120. STATUS AND RELATIONSHIP TO MEMBER STATES.
        1121. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES.
        1122. ENFORCEMENT OF COMPACT.
        1123. LEGAL ACTIONS AGAINST COMPACT.
        1124. RESTRICTIONS ON AUTHORITY.
        1125. CONSTRUCTION, SAVINGS AND SEVERABILITY.
  § 1113. PURPOSES. THE PURPOSES OF THE COMPACT ARE:
  A. TO ENABLE MEMBER STATES TO ACT JOINTLY AND COOPERATIVELY TO  CREATE
MORE  UNIFORM,  EFFECTIVE,  AND EFFICIENT BREED SPECIFIC RULES AND REGU-
LATIONS RELATING TO THE PERMITTED AND PROHIBITED USE OF DRUGS AND  MEDI-
CATIONS  FOR  THE  HEALTH  AND WELFARE OF THE HORSE AND THE INTEGRITY OF
RACING, AND TESTING FOR SUCH SUBSTANCES, IN OR AFFECTING A MEMBER STATE;
AND
  B. TO AUTHORIZE THE NEW YORK STATE GAMING COMMISSION TO PARTICIPATE IN
THE COMPACT.
  § 1114. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE,  THE  FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  A.  "COMPACT  COMMISSION" MEANS THE ORGANIZATION OF DELEGATES FROM THE
MEMBER STATES THAT IS AUTHORIZED AND EMPOWERED BY THE COMPACT  TO  CARRY
OUT THE PURPOSES OF THE COMPACT;
  B. "COMPACT RULE" MEANS A RULE OR REGULATION ADOPTED BY A MEMBER STATE
REGULATING THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS FOR
THE  HEALTH  AND  WELFARE  OF THE HORSE AND THE INTEGRITY OF RACING, AND
TESTING FOR SUCH SUBSTANCES,  IN  LIVE  PARI-MUTUEL  HORSE  RACING  THAT
OCCURS IN OR AFFECTS SUCH STATES;
  C. "DELEGATE" MEANS THE CHAIRPERSON OF THE MEMBER STATE RACING COMMIS-
SION  OR  SIMILAR REGULATORY BODY IN A STATE, OR SUCH PERSON'S DESIGNEE,
WHO REPRESENTS THE MEMBER STATE, AS  A  VOTING  MEMBER  OF  THE  COMPACT
COMMISSION AND ANYONE WHO IS SERVING AS SUCH PERSON'S ALTERNATE;
  D.  "EQUINE  DRUG RULE" MEANS A RULE OR REGULATION THAT RELATES TO THE
ADMINISTRATION OF DRUGS, MEDICATIONS, OR OTHER  SUBSTANCES  TO  A  HORSE
THAT  MAY  PARTICIPATE  IN  LIVE  HORSE RACING WITH PARI-MUTUEL WAGERING
INCLUDING, BUT NOT LIMITED TO, THE REGULATION OF THE PERMISSIBLE USE  OF
SUCH SUBSTANCES TO ENSURE THE INTEGRITY OF RACING AND THE HEALTH, SAFETY
AND  WELFARE  OF RACE HORSES, APPROPRIATE SANCTIONS FOR RULE VIOLATIONS,
AND QUALITY LABORATORY TESTING PROGRAMS TO DETECT SUCH SUBSTANCES IN THE
BODILY SYSTEM OF A RACE HORSE;
  E. "LIVE RACING" MEANS LIVE HORSE RACING WITH PARI-MUTUEL WAGERING;
  F. "MEMBER STATE" MEANS EACH STATE THAT HAS ENACTED THE COMPACT;

S. 1509                            65                            A. 2009

  G. "NATIONAL INDUSTRY STAKEHOLDER" MEANS A NON-GOVERNMENTAL  ORGANIZA-
TION  THAT  FROM  A NATIONAL PERSPECTIVE SIGNIFICANTLY REPRESENTS ONE OR
MORE CATEGORIES OF PARTICIPANTS IN LIVE RACING AND PARI-MUTUEL WAGERING;
  H. "PARTICIPANTS IN LIVE RACING" MEANS ALL PERSONS WHO PARTICIPATE IN,
OPERATE, PROVIDE INDUSTRY SERVICES FOR, OR ARE INVOLVED WITH LIVE RACING
WITH PARI-MUTUEL WAGERING;
  I.  "STATE" MEANS EACH OF THE SEVERAL STATES OF THE UNITED STATES, THE
DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO RICO, AND EACH TERRITO-
RY OR POSSESSION OF THE UNITED STATES; AND
  J. "STATE RACING COMMISSION" MEANS THE STATE RACING COMMISSION, OR ITS
EQUIVALENT, IN EACH MEMBER STATE. WHERE A MEMBER  STATE  HAS  MORE  THAN
ONE, IT SHALL MEAN ALL SUCH RACING COMMISSIONS, OR THEIR EQUIVALENTS.
  §  1115.  COMPOSITION  AND  MEETINGS OF COMPACT COMMISSION. THE MEMBER
STATES SHALL CREATE AND PARTICIPATE IN A COMPACT COMMISSION AS FOLLOWS:
  A. THE COMPACT SHALL COME INTO FORCE WHEN ENACTED BY ANY TWO  ELIGIBLE
STATES,  AND  SHALL  THEREAFTER  BECOME EFFECTIVE AS TO ANY OTHER MEMBER
STATE THAT ENACTS THE COMPACT. ANY STATE THAT HAS ADOPTED OR  AUTHORIZED
PARI-MUTUEL  WAGERING OR LIVE HORSE RACING SHALL BE ELIGIBLE TO BECOME A
PARTY TO THE COMPACT. A COMPACT RULE SHALL NOT BECOME EFFECTIVE IN A NEW
MEMBER STATE BASED MERELY UPON IT ENTERING THE COMPACT.
  B. THE MEMBER STATES HEREBY CREATE THE INTERSTATE ANTI-DOPING AND DRUG
TESTING STANDARDS COMPACT COMMISSION, A BODY CORPORATE AND AN INTERSTATE
GOVERNMENTAL ENTITY OF THE MEMBER STATES, TO COORDINATE THE RULE  MAKING
ACTIONS OF EACH MEMBER STATE RACING COMMISSION THROUGH A COMPACT COMMIS-
SION.
  C.  THE  COMPACT  COMMISSION SHALL CONSIST OF ONE DELEGATE, THE CHAIR-
PERSON OF THE STATE RACING COMMISSION OR SUCH  PERSON'S  DESIGNEE,  FROM
EACH MEMBER STATE. WHEN A DELEGATE IS NOT PRESENT TO PERFORM ANY DUTY IN
THE COMPACT COMMISSION, A DESIGNATED ALTERNATE MAY SERVE. THE PERSON WHO
REPRESENTS  A  MEMBER  STATE  IN  THE COMPACT COMMISSION SHALL SERVE AND
PERFORM SUCH DUTIES WITHOUT COMPENSATION OR REMUNERATION; PROVIDED, THAT
SUBJECT TO THE AVAILABILITY OF BUDGETED FUNDS, EACH  MAY  BE  REIMBURSED
FOR  ORDINARY  AND  NECESSARY  COSTS  AND EXPENSES. THE DESIGNATION OF A
DELEGATE, INCLUDING THE  ALTERNATE,  SHALL  BE  EFFECTIVE  WHEN  WRITTEN
NOTICE  HAS  BEEN  PROVIDED  TO  THE  COMPACT  COMMISSION. THE DELEGATE,
INCLUDING THE ALTERNATE, MUST BE A  MEMBER  OR  EMPLOYEE  OF  THE  STATE
RACING COMMISSION.
  D.  THE COMPACT DELEGATE FROM EACH STATE SHALL PARTICIPATE AS AN AGENT
OF THE STATE RACING COMMISSION. EACH DELEGATE SHALL HAVE THE  ASSISTANCE
OF  THE  STATE  RACING  COMMISSION  IN REGARD TO ALL DECISION MAKING AND
ACTIONS OF THE STATE IN AND THROUGH THE COMPACT COMMISSION.
  E. EACH MEMBER STATE, BY ITS DELEGATE, SHALL BE ENTITLED TO  ONE  VOTE
IN THE COMPACT COMMISSION. A MAJORITY VOTE OF THE TOTAL NUMBER OF DELEG-
ATES SHALL BE REQUIRED TO PROPOSE A COMPACT RULE, RECEIVE AND DISTRIBUTE
ANY  FUNDS,  AND TO ADOPT, AMEND, OR RESCIND THE BY-LAWS. A COMPACT RULE
SHALL TAKE EFFECT IN AND FOR EACH MEMBER STATE WHEN ADOPTED BY  A  SUPER
MAJORITY  VOTE  OF  EIGHTY PERCENT OF THE TOTAL NUMBER OF MEMBER STATES.
OTHER COMPACT ACTIONS SHALL REQUIRE A MAJORITY VOTE OF THE DELEGATES WHO
ARE MEETING.
  F. MEETINGS AND VOTES OF THE COMPACT COMMISSION MAY  BE  CONDUCTED  IN
PERSON  OR  BY TELEPHONE OR OTHER ELECTRONIC COMMUNICATION. MEETINGS MAY
BE CALLED BY THE CHAIRPERSON OF THE COMPACT COMMISSION  OR  BY  ANY  TWO
DELEGATES.    REASONABLE NOTICE OF EACH MEETING SHALL BE PROVIDED TO ALL
DELEGATES SERVING IN THE COMPACT COMMISSION.
  G. NO ACTION MAY BE TAKEN AT A COMPACT COMMISSION MEETING UNLESS THERE
IS A QUORUM, WHICH IS EITHER A MAJORITY OF THE DELEGATES IN THE  COMPACT

S. 1509                            66                            A. 2009

COMMISSION,  OR  WHERE  APPLICABLE,  ALL  THE  DELEGATES FROM ANY MEMBER
STATES WHO PROPOSE OR ARE VOTING AFFIRMATIVELY TO ADOPT A COMPACT RULE.
  H.  ONCE  EFFECTIVE,  THE  COMPACT  SHALL CONTINUE IN FORCE AND REMAIN
BINDING ACCORDING TO ITS TERMS UPON EACH MEMBER STATE; PROVIDED THAT,  A
MEMBER STATE MAY WITHDRAW FROM THE COMPACT BY REPEALING THE STATUTE THAT
ENACTED  THE  COMPACT  INTO  LAW. THE RACING COMMISSION OF A WITHDRAWING
STATE SHALL GIVE WRITTEN NOTICE OF SUCH WITHDRAWAL TO THE COMPACT CHAIR-
PERSON, WHO SHALL NOTIFY THE MEMBER STATE RACING  COMMISSIONS.  A  WITH-
DRAWING  STATE  SHALL REMAIN RESPONSIBLE FOR ANY UNFULFILLED OBLIGATIONS
AND LIABILITIES. THE EFFECTIVE DATE OF WITHDRAWAL FROM THE COMPACT SHALL
BE THE EFFECTIVE DATE OF THE REPEAL.
  § 1116. OPERATION OF COMPACT COMMISSION.  THE  COMPACT  COMMISSION  IS
HEREBY  GRANTED,  SO  THAT  IT  MAY  BE AN EFFECTIVE MEANS TO PURSUE AND
ACHIEVE THE PURPOSES OF EACH MEMBER STATE IN THE COMPACT, THE POWER  AND
DUTY:
  A.  TO ADOPT, AMEND, AND RESCIND BY-LAWS TO GOVERN ITS CONDUCT, AS MAY
BE NECESSARY OR APPROPRIATE TO CARRY OUT THE PURPOSES OF THE COMPACT; TO
PUBLISH THEM IN A CONVENIENT FORM; AND TO FILE A COPY OF THEM  WITH  THE
STATE RACING COMMISSION OF EACH MEMBER STATE;
  B. TO ELECT ANNUALLY FROM AMONG THE DELEGATES, INCLUDING ALTERNATES, A
CHAIRPERSON,  VICE-CHAIRPERSON,  AND  TREASURER  WITH SUCH AUTHORITY AND
DUTIES AS MAY BE SPECIFIED IN THE BY-LAWS;
  C. TO ESTABLISH AND APPOINT COMMITTEES WHICH IT  DEEMS  NECESSARY  FOR
THE  CARRYING  OUT OF ITS FUNCTIONS, INCLUDING ADVISORY COMMITTEES WHICH
SHALL BE COMPRISED OF NATIONAL INDUSTRY STAKEHOLDERS  AND  ORGANIZATIONS
AND  SUCH  OTHER  PERSONS  AS  MAY  BE DESIGNATED IN ACCORDANCE WITH THE
BY-LAWS, TO OBTAIN THEIR TIMELY AND MEANINGFUL INPUT  INTO  THE  COMPACT
RULE MAKING PROCESSES;
  D. TO ESTABLISH AN EXECUTIVE COMMITTEE, WITH MEMBERSHIP ESTABLISHED IN
THE  BY-LAWS,  WHICH  SHALL OVERSEE THE DAY-TO-DAY ACTIVITIES OF COMPACT
ADMINISTRATION AND MANAGEMENT BY THE EXECUTIVE DIRECTOR AND STAFF;  HIRE
AND FIRE AS MAY BE NECESSARY AFTER CONSULTATION WITH THE COMPACT COMMIS-
SION;  ADMINISTER  AND  ENFORCE COMPLIANCE WITH THE PROVISIONS, BY-LAWS,
AND RULES OF THE COMPACT; AND PERFORM SUCH OTHER DUTIES AS  THE  BY-LAWS
MAY ESTABLISH;
  E. TO CREATE, APPOINT, AND ABOLISH ALL THOSE OFFICES, EMPLOYMENTS, AND
POSITIONS,  INCLUDING  AN  EXECUTIVE  DIRECTOR,  USEFUL  TO  FULFILL ITS
PURPOSES;
  F. TO DELEGATE DAY-TO-DAY MANAGEMENT AND ADMINISTRATION OF ITS DUTIES,
AS NEEDED, TO AN EXECUTIVE DIRECTOR AND SUPPORT STAFF; AND
  G. TO ADOPT AN ANNUAL BUDGET SUFFICIENT TO PROVIDE FOR THE PAYMENT  OF
THE  REASONABLE EXPENSES OF ITS ESTABLISHMENT, ORGANIZATION, AND ONGOING
ACTIVITIES; PROVIDED, THAT THE BUDGET SHALL BE FUNDED BY ONLY  VOLUNTARY
CONTRIBUTIONS.
  §  1117. GENERAL POWERS AND DUTIES. TO ALLOW EACH MEMBER STATE, AS AND
WHEN IT CHOOSES, TO ACHIEVE THE PURPOSE OF THE COMPACT THROUGH JOINT AND
COOPERATIVE ACTION, THE MEMBER STATES ARE HEREBY GRANTED THE  POWER  AND
DUTY, BY AND THROUGH THE COMPACT COMMISSION:
  A.  TO  ACT  JOINTLY  AND COOPERATIVELY TO CREATE A MORE EQUITABLE AND
UNIFORM PARI-MUTUEL RACING AND WAGERING INTERSTATE REGULATORY  FRAMEWORK
BY  THE  ADOPTION OF STANDARDIZED RULES FOR THE PERMITTED AND PROHIBITED
USE OF DRUGS AND MEDICATIONS FOR THE HEALTH, AND WELFARE  OF  THE  HORSE
AND  THE INTEGRITY OF RACING, INCLUDING RULES GOVERNING THE USE OF DRUGS
AND MEDICATIONS AND DRUG TESTING;
  B. TO COLLABORATE WITH NATIONAL  INDUSTRY  STAKEHOLDERS  AND  INDUSTRY
ORGANIZATIONS,  INCLUDING THE ASSOCIATION OF RACING COMMISSIONERS INTER-

S. 1509                            67                            A. 2009

NATIONAL, INC. AND THE RACING MEDICATION AND TESTING CONSORTIUM, IN  THE
DESIGN  AND  IMPLEMENTATION OF COMPACT RULES IN A MANNER THAT SERVES THE
BEST INTERESTS OF RACING; AND
  C.  TO PROPOSE AND ADOPT BREED SPECIFIC COMPACT EQUINE DRUGS AND MEDI-
CATIONS RULES FOR THE HEALTH, AND WELFARE OF THE HORSE, INCLUDING  RULES
GOVERNING  THE PERMITTED AND PROHIBITED USE OF DRUGS AND MEDICATIONS AND
DRUG TESTING, WHICH SHALL HAVE THE FORCE AND EFFECT OF  STATE  RULES  OR
REGULATIONS  IN  THE  MEMBER  STATES,  TO  GOVERN LIVE PARI-MUTUEL HORSE
RACING.
  § 1118. OTHER POWERS AND DUTIES. THE COMPACT COMMISSION  MAY  EXERCISE
SUCH  INCIDENTAL POWERS AND DUTIES AS MAY BE NECESSARY AND PROPER FOR IT
TO FUNCTION IN A USEFUL MANNER, INCLUDING BUT NOT LIMITED TO  THE  POWER
AND DUTY:
  A.  TO  ENTER INTO CONTRACTS AND AGREEMENTS WITH GOVERNMENTAL AGENCIES
AND OTHER PERSONS, INCLUDING OFFICERS AND EMPLOYEES OF A  MEMBER  STATE,
TO  PROVIDE PERSONAL SERVICES FOR ITS ACTIVITIES AND SUCH OTHER SERVICES
AS MAY BE NECESSARY;
  B. TO BORROW, ACCEPT, AND CONTRACT FOR THE SERVICES OF PERSONNEL  FROM
ANY  STATE,  FEDERAL,  OR  OTHER  GOVERNMENTAL AGENCY, OR FROM ANY OTHER
PERSON OR ENTITY;
  C. TO RECEIVE INFORMATION FROM AND  TO  PROVIDE  INFORMATION  TO  EACH
MEMBER  STATE  RACING  COMMISSION,  INCLUDING ITS OFFICERS AND STAFF, ON
SUCH TERMS AND CONDITIONS AS MAY BE ESTABLISHED IN THE BY-LAWS;
  D. TO ACQUIRE, HOLD, AND DISPOSE OF ANY REAL OR PERSONAL  PROPERTY  BY
GIFT,  GRANT, PURCHASE, LEASE, LICENSE, AND SIMILAR MEANS AND TO RECEIVE
ADDITIONAL FUNDS THROUGH GIFTS, GRANTS, AND APPROPRIATIONS;
  E. WHEN AUTHORIZED BY A COMPACT RULE, TO CONDUCT HEARINGS  AND  RENDER
REPORTS AND ADVISORY DECISIONS AND ORDERS; AND
  F.  TO  ESTABLISH  IN THE BY-LAWS THE REQUIREMENTS THAT SHALL DESCRIBE
AND GOVERN ITS DUTIES TO CONDUCT OPEN OR PUBLIC MEETINGS AND TO  PROVIDE
PUBLIC ACCESS TO COMPACT RECORDS AND INFORMATION.
  §  1119.  COMPACT  RULE  MAKING.  IN  THE  EXERCISE OF ITS RULE MAKING
AUTHORITY, THE COMPACT COMMISSION SHALL:
  A. ENGAGE IN FORMAL RULE MAKING PURSUANT TO A  PROCESS  THAT  SUBSTAN-
TIALLY  CONFORMS TO THE MODEL STATE ADMINISTRATIVE PROCEDURE ACT OF 1981
AS AMENDED, AS MAY BE APPROPRIATE TO THE ACTIONS AND OPERATIONS  OF  THE
COMPACT COMMISSION;
  B.  GATHER INFORMATION AND ENGAGE IN DISCUSSIONS WITH ADVISORY COMMIT-
TEES, NATIONAL INDUSTRY STAKEHOLDERS, AND OTHERS, INCLUDING AN  OPPORTU-
NITY  FOR  INDUSTRY ORGANIZATIONS TO SUBMIT INPUT TO MEMBER STATE RACING
COMMISSIONS ON THE STATE LEVEL, TO FOSTER, PROMOTE AND CONDUCT A  COLLA-
BORATIVE  APPROACH  IN  THE DESIGN AND ADVANCEMENT OF COMPACT RULES IN A
MANNER THAT SERVES THE BEST INTERESTS OF RACING AND  AS  ESTABLISHED  IN
THE BY-LAWS;
  C.  DIRECT  THE  PUBLICATION  IN EACH MEMBER STATE OF EACH EQUINE DRUG
RULE PROPOSED BY THE COMPACT COMMISSION,  CONDUCT  A  REVIEW  OF  PUBLIC
COMMENTS RECEIVED BY EACH MEMBER STATE RACING COMMISSION AND THE COMPACT
COMMISSION  IN RESPONSE TO THE PUBLICATION OF ITS RULE MAKING PROPOSALS,
CONSULT WITH NATIONAL INDUSTRY STAKEHOLDERS  AND  PARTICIPANTS  IN  LIVE
RACING WITH REGARD TO SUCH PROCESS AND ANY REVISIONS TO THE COMPACT RULE
PROPOSAL,  AND  MEET UPON THE COMPLETION OF THE PUBLIC COMMENT PERIOD TO
CONDUCT A VOTE ON THE ADOPTION OF THE PROPOSED COMPACT RULE AS  A  STATE
RULE IN THE MEMBER STATES; AND
  D.  HAVE  A  STANDING  COMMITTEE  THAT  REVIEWS AT LEAST QUARTERLY THE
PARTICIPATION IN AND VALUE OF COMPACT RULES AND, WHEN IT DETERMINES THAT
A REVISION IS APPROPRIATE OR WHEN REQUESTED  TO  BY  ANY  MEMBER  STATE,

S. 1509                            68                            A. 2009

SUBMITS A REVISING PROPOSED COMPACT RULE. TO THE EXTENT A REVISION WOULD
ONLY  ADD  OR  REMOVE A MEMBER STATE OR STATES FROM WHERE A COMPACT RULE
HAS BEEN ADOPTED, THE VOTE REQUIRED BY THIS SECTION SHALL BE REQUIRED OF
ONLY SUCH STATE OR STATES.  THE STANDING COMMITTEE SHALL GATHER INFORMA-
TION  AND ENGAGE IN DISCUSSIONS WITH NATIONAL INDUSTRY STAKEHOLDERS, WHO
MAY ALSO DIRECTLY RECOMMEND A COMPACT RULE PROPOSAL OR REVISION  TO  THE
COMPACT COMMITTEE.
  §  1120.  STATUS  AND  RELATIONSHIP TO MEMBER STATES.   A. THE COMPACT
COMMISSION, AS AN INTERSTATE GOVERNMENTAL ENTITY, SHALL BE  EXEMPT  FROM
ALL TAXATION IN AND BY THE MEMBER STATES.
  B.  THE  COMPACT  COMMISSION SHALL NOT PLEDGE THE CREDIT OF ANY MEMBER
STATE EXCEPT BY AND WITH THE APPROPRIATE LEGAL AUTHORITY OF THAT STATE.
  C. EACH MEMBER STATE SHALL REIMBURSE OR OTHERWISE PAY THE EXPENSES  OF
ITS DELEGATE, INCLUDING ANY ALTERNATE, IN THE COMPACT COMMISSION.
  D. NO MEMBER STATE, EXCEPT AS PROVIDED IN SECTION ELEVEN HUNDRED TWEN-
TY-THREE  OF  THIS  ARTICLE, SHALL BE HELD LIABLE FOR THE DEBTS OR OTHER
FINANCIAL OBLIGATIONS INCURRED BY THE COMPACT COMMISSION.
  E. NO MEMBER STATE SHALL HAVE, WHILE IT PARTICIPATES  IN  THE  COMPACT
COMMISSION,  ANY CLAIM TO OR OWNERSHIP OF ANY PROPERTY HELD BY OR VESTED
IN THE COMPACT COMMISSION OR TO ANY COMPACT COMMISSION FUNDS HELD PURSU-
ANT TO THE COMPACT EXCEPT FOR STATE LICENSE  OR  OTHER  FEES  OR  MONEYS
COLLECTED BY THE COMPACT COMMISSION AS ITS AGENT.
  F. THE COMPACT DISSOLVES UPON THE DATE OF THE WITHDRAWAL OF THE MEMBER
STATE  THAT REDUCES MEMBERSHIP IN THE COMPACT TO ONE STATE. UPON DISSOL-
UTION, THE COMPACT BECOMES NULL AND VOID AND  SHALL  BE  OF  NO  FURTHER
FORCE  OR EFFECT, ALTHOUGH EQUINE DRUG RULES ADOPTED THROUGH THE COMPACT
SHALL REMAIN STATE RULES IN EACH MEMBER STATE THAT HAD ADOPTED THEM, AND
THE BUSINESS AND AFFAIRS OF THE  COMPACT  SHALL  BE  CONCLUDED  AND  ANY
SURPLUS  FUNDS  SHALL  BE  DISTRIBUTED  TO  THE  FORMER MEMBER STATES IN
ACCORDANCE WITH THE BY-LAWS.
  § 1121. RIGHTS AND RESPONSIBILITIES OF MEMBER STATES.  A. EACH  MEMBER
STATE  IN THE COMPACT SHALL ACCEPT THE DECISIONS, DULY APPLICABLE TO IT,
OF THE COMPACT COMMISSION IN REGARD TO COMPACT RULES AND RULE MAKING.
  B. THE COMPACT SHALL NOT BE CONSTRUED TO DIMINISH OR LIMIT THE  POWERS
AND  RESPONSIBILITIES  OF  THE MEMBER STATE RACING COMMISSION OR SIMILAR
REGULATORY BODY, OR TO INVALIDATE ANY ACTION IT  HAS  PREVIOUSLY  TAKEN,
EXCEPT  TO  THE  EXTENT  IT  HAS, BY ITS COMPACT DELEGATE, EXPRESSED ITS
CONSENT TO A SPECIFIC RULE OR OTHER ACTION OF  THE  COMPACT  COMMISSION.
THE  COMPACT  DELEGATE  FROM  EACH STATE SHALL SERVE AS THE AGENT OF THE
STATE RACING COMMISSION AND  SHALL  POSSESS  SUBSTANTIAL  KNOWLEDGE  AND
EXPERIENCE AS A REGULATOR OR PARTICIPANT IN THE HORSE RACING INDUSTRY.
  §  1122. ENFORCEMENT OF COMPACT.  A. THE COMPACT COMMISSION SHALL HAVE
STANDING TO INTERVENE IN ANY LEGAL ACTION THAT PERTAINS TO  THE  SUBJECT
MATTER OF THE COMPACT AND MIGHT AFFECT ITS POWERS, DUTIES, OR ACTIONS.
  B.  THE  COURTS  AND  EXECUTIVE IN EACH MEMBER STATE SHALL ENFORCE THE
COMPACT AND TAKE ALL ACTIONS NECESSARY AND APPROPRIATE TO EFFECTUATE ITS
PURPOSES AND INTENT. COMPACT PROVISIONS, BY-LAWS,  AND  RULES  SHALL  BE
RECEIVED  BY  ALL JUDGES, DEPARTMENTS, AGENCIES, BODIES, AND OFFICERS OF
EACH MEMBER STATE AND ITS POLITICAL SUBDIVISIONS AS EVIDENCE OF THEM.
  § 1123. LEGAL ACTIONS AGAINST COMPACT.  A. ANY PERSON MAY  COMMENCE  A
CLAIM,  ACTION,  OR  PROCEEDING  AGAINST THE COMPACT COMMISSION IN STATE
COURT FOR DAMAGES. THE COMPACT COMMISSION SHALL HAVE THE BENEFIT OF  THE
SAME  LIMITS  OF LIABILITY, DEFENSES, RIGHTS TO INDEMNITY AND DEFENSE BY
THE STATE, AND OTHER LEGAL RIGHTS AND DEFENSES FOR  NON-COMPACT  MATTERS
OF  THE  STATE  RACING  COMMISSION  IN  THE  STATE. ALL LEGAL RIGHTS AND

S. 1509                            69                            A. 2009

DEFENSES THAT ARISE FROM THE COMPACT SHALL  ALSO  BE  AVAILABLE  TO  THE
COMPACT COMMISSION.
  B.  A  COMPACT  DELEGATE,  ALTERNATE, OR OTHER MEMBER OR EMPLOYEE OF A
STATE RACING COMMISSION WHO UNDERTAKES COMPACT ACTIVITIES OR DUTIES DOES
SO IN THE COURSE OF BUSINESS OF THEIR STATE RACING COMMISSION, AND SHALL
HAVE THE BENEFIT OF THE SAME LIMITS OF LIABILITY,  DEFENSES,  RIGHTS  TO
INDEMNITY  AND DEFENSE BY THE STATE, AND OTHER LEGAL RIGHTS AND DEFENSES
FOR NON-COMPACT MATTERS OF STATE EMPLOYEES IN THEIR STATE. THE EXECUTIVE
DIRECTOR AND OTHER EMPLOYEES OF THE COMPACT COMMISSION  SHALL  HAVE  THE
BENEFIT  OF  THESE  SAME LEGAL RIGHTS AND DEFENSES OF STATE EMPLOYEES IN
THE MEMBER STATE IN WHICH THEY ARE PRIMARILY EMPLOYED. ALL LEGAL  RIGHTS
AND  DEFENSES  THAT  ARISE  FROM  THE COMPACT SHALL ALSO BE AVAILABLE TO
THEM.
  C. EACH MEMBER STATE SHALL BE  LIABLE  FOR  AND  PAY  JUDGMENTS  FILED
AGAINST  THE  COMPACT  COMMISSION  TO  THE EXTENT RELATED TO ITS PARTIC-
IPATION IN THE COMPACT. WHERE LIABILITY ARISES  FROM  ACTION  UNDERTAKEN
JOINTLY WITH OTHER MEMBER STATES, THE LIABILITY SHALL BE DIVIDED EQUALLY
AMONG THE STATES FOR WHOM THE APPLICABLE ACTION OR OMISSION OF THE EXEC-
UTIVE  DIRECTOR  OR OTHER EMPLOYEES OF THE COMPACT COMMISSION WAS UNDER-
TAKEN; AND NO MEMBER STATE SHALL CONTRIBUTE TO OR PAY, OR BE JOINTLY  OR
SEVERALLY  OR  OTHERWISE LIABLE FOR, ANY PART OF ANY JUDGMENT BEYOND ITS
SHARE AS DETERMINED IN ACCORDANCE WITH THIS SECTION.
  § 1124. RESTRICTIONS ON AUTHORITY.  A. NEW YORK SUBSTANTIVE STATE LAWS
APPLICABLE TO PARI-MUTUEL HORSE RACING AND WAGERING SHALL REMAIN IN FULL
FORCE AND EFFECT.
  B. COMPACT RULES SHALL NOT PRECLUDE SUBSEQUENT RULEMAKING IN NEW  YORK
STATE  ON  THE  SAME  OR  RELATED MATTER. THE MOST RECENTLY ADOPTED RULE
SHALL THEREBY BECOME THE GOVERNING LAW.
  C. NEW YORK STATE SHALL NOT PARTICIPATE IN OR  APPLY  THIS  INTERSTATE
COMPACT TO ANY ASPECT OF STANDARDBRED RACING.
  §  1125. CONSTRUCTION, SAVINGS AND SEVERABILITY.  A. THE COMPACT SHALL
BE LIBERALLY CONSTRUED SO AS TO EFFECTUATE ITS PURPOSES. THE  PROVISIONS
OF  THE  COMPACT SHALL BE SEVERABLE AND IF ANY PHRASE, CLAUSE, SENTENCE,
OR PROVISION OF THE COMPACT IS DECLARED TO BE CONTRARY TO THE  CONSTITU-
TION  OF  THE UNITED STATES OR OF ANY MEMBER STATE, OR THE APPLICABILITY
OF THE COMPACT TO ANY GOVERNMENT, AGENCY,  PERSON,  OR  CIRCUMSTANCE  IS
HELD  INVALID,  THE  VALIDITY  OF  THE  REMAINDER OF THE COMPACT AND ITS
APPLICABILITY TO ANY GOVERNMENT, AGENCY, PERSON, OR  CIRCUMSTANCE  SHALL
NOT  BE  AFFECTED.   IF ALL OR SOME PORTION OF THE COMPACT IS HELD TO BE
CONTRARY TO THE CONSTITUTION OF ANY  MEMBER  STATE,  THE  COMPACT  SHALL
REMAIN IN FULL FORCE AND EFFECT AS TO THE REMAINING MEMBER STATES AND IN
FULL  FORCE  AND  EFFECT  AS  TO  THE STATE AFFECTED AS TO ALL SEVERABLE
MATTERS.
  B. IN THE EVENT OF ANY ALLEGATION,  FINDING,  OR  RULING  AGAINST  THE
COMPACT  OR  ITS PROCEDURES OR ACTIONS, PROVIDED THAT A MEMBER STATE HAS
FOLLOWED THE COMPACT'S STATED PROCEDURES, ANY RULE IT PURPORTED TO ADOPT
USING THE PROCEDURES OF THIS STATUTE SHALL CONSTITUTE A DULY ADOPTED AND
VALID STATE RULE.
  § 2. This act shall take effect immediately.

                                 PART JJ

  Section 1. Section 2 of part EE of chapter 59 of  the  laws  of  2018,
amending  the racing, pari-mutuel wagering and breeding law, relating to
adjusting the franchise payment establishing an  advisory  committee  to

S. 1509                            70                            A. 2009

review  the structure, operations and funding of equine drug testing and
research, is amended to read as follows:
  §  2.  An  advisory committee shall be established within the New York
gaming commission comprised of individuals with demonstrated interest in
the performance of thoroughbred and standardbred race horses  to  review
the present structure, operations and funding of equine drug testing and
research  conducted  pursuant to article nine of the racing, pari-mutuel
wagering and breeding law.  Members  of  the  committee,  who  shall  be
appointed  by the governor, shall include but not be limited to a desig-
nee at the recommendation of each licensed  or  franchised  thoroughbred
and  standardbred  racetrack,  a  designee at the recommendation of each
operating regional off-track betting  corporation,  a  designee  at  the
recommendation of each recognized horsemen's organization at licensed or
franchised  thoroughbred  and standardbred racetracks, a designee at the
recommendation of both Morrisville State College and the Cornell Univer-
sity School of Veterinary Medicine, and two designees each at the recom-
mendation of the speaker of the assembly and temporary president of  the
senate.  The  governor  shall designate the chair from among the members
who shall serve as such at the pleasure of the governor. State  agencies
shall  cooperate with and assist the committee in the fulfillment of its
duties and may  render  informational,  non-personnel  services  to  the
committee within their respective functions as the committee may reason-
ably request. Recommendations shall be delivered to the temporary presi-
dent  of the senate, speaker of the assembly and governor by December 1,
[2018] 2019 regarding the future of such research, testing and  funding.
Members of the board shall not be considered policymakers.
  §  2. Subdivision 1 of section 902 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 15  of  the  laws  of  2010,  is
amended to read as follows:
  1.  In  order  to assure the public's confidence and continue the high
degree of integrity in racing at the pari-mutuel betting tracks,  equine
drug  testing  at  race  meetings shall be conducted by a [state college
within this state with an  approved  equine  science  program]  SUITABLE
LABORATORY,  AS  THE  GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION.
The [state racing and wagering board] GAMING COMMISSION shall promulgate
any rules and regulations necessary to implement the provisions of  this
section,  including  administrative  penalties  of  loss of purse money,
fines, or denial, suspension[,] or revocation of a  license  for  racing
drugged horses.
  § 3. This act shall take effect immediately.

                                 PART KK

  Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
amended by adding a new section 104-a to read as follows:
  § 104-A. REGISTRATION TO ENGAGE IN GAMING ACTIVITY.    NOTWITHSTANDING
ANY  PROVISION  OF  LAW  TO THE CONTRARY, THE COMMISSION MAY REQUIRE ANY
PERSON, CORPORATION OR ASSOCIATION INTENDING TO  ENGAGE  IN  ANY  GAMING
ACTIVITY REGULATED BY THE COMMISSION TO SUBMIT A PRIMARY REGISTRATION TO
THE COMMISSION.
  1.  FOR  THE  PURPOSES  OF  THIS SECTION, WHEN A PERSON IS REQUIRED TO
SUBMIT A REGISTRATION, ANY  AND  ALL  LICENSES,  REGISTRATIONS,  CERTIF-
ICATES,  PERMITS  OR  APPROVALS  ISSUED TO SUCH PERSON AS REQUIRED UNDER
THIS CHAPTER OR UNDER ARTICLE  THIRTY-FOUR  OF  THE  TAX  LAW  SHALL  BE
CONSIDERED  SUB-REGISTRATIONS  OR  SUB-LICENSES  TO  THE  AFOREMENTIONED

S. 1509                            71                            A. 2009

REGISTRATION. NO INDIVIDUAL SHALL ENGAGE IN ANY GAMING ACTIVITY  WITHOUT
A VALID SUB-REGISTRATION OR SUB-LICENSE AUTHORIZING SUCH ACTIVITY.
  2. THE PRIMARY REGISTRATION TO ENGAGE IN GAMING ACTIVITIES SHALL SOLE-
LY BE AN INFORMATIONAL RETURN CONTAINING SUCH INFORMATION THE COMMISSION
DEEMS  APPLICABLE  TO ALL SUB-REGISTRATIONS OR SUB-LICENSES. THE COMMIS-
SION SHALL REQUIRE SEPARATE APPLICATIONS FOR  ALL  SUB-REGISTRATIONS  OR
SUB-LICENSES CONTAINING ALL SUPPLEMENTAL INFORMATION THAT THE COMMISSION
DEEMS NECESSARY.
  ALL  COMMISSION DETERMINATIONS SHALL BE MADE ON AN APPLICANT'S SUB-RE-
GISTRATION OR SUB-LICENSE AND  NOT  ON  THE  PRIMARY  REGISTRATION.  ANY
INFORMATION  OBTAINED  FOR  OR CONTAINED IN THE PRIMARY REGISTRATION AND
ALL ASSOCIATED SUB-REGISTRATIONS OR SUB-LICENSES  MAY  BE  USED  IN  ANY
SUBSEQUENT LICENSING AND REGISTRATION DETERMINATIONS.
  3.  PURSUANT  TO  THE  COMMISSION'S  AUTHORITY GRANTED BY SUBDIVISIONS
THIRTEEN AND FOURTEEN OF SECTION ONE HUNDRED FOUR OF THIS  ARTICLE,  THE
COMMISSION MAY REQUIRE A BACKGROUND INVESTIGATION AND A CRIMINAL HISTORY
RECORD SEARCH FOR ANY PRIMARY OR SUB-REGISTRATION OR SUB-LICENSE SOUGHT.
THE  COMMISSION  SHALL  HAVE  THE  RIGHT TO REQUEST NEW INFORMATION UPON
SUBMISSION OF ANY NEW SUB-REGISTRATION OR SUB-LICENSE APPLICATION.
  FOR THE PURPOSES OF THIS SECTION, UPON AN INITIAL SUB-REGISTRATION  OR
SUB-LICENSE  APPLICATION  AND  ANY SUBSEQUENT SUB-APPLICATIONS AS MAY BE
REQUIRED BY THE COMMISSION, EACH APPLICANT SHALL SUBMIT TO  THE  COMMIS-
SION THE APPLICANT'S NAME, ADDRESS, FINGERPRINTS AND WRITTEN CONSENT FOR
CRIMINAL  HISTORY INFORMATION AS DEFINED IN PARAGRAPH (C) OF SUBDIVISION
ONE OF SECTION EIGHT HUNDRED FORTY-FIVE-B OF THE EXECUTIVE  LAW,  TO  BE
PERFORMED.  THE  COMMISSION IS HEREBY AUTHORIZED TO EXCHANGE FINGERPRINT
DATA WITH AND RECEIVE CRIMINAL HISTORY RECORD INFORMATION FROM THE STATE
DIVISION OF CRIMINAL JUSTICE SERVICES AND THE FEDERAL BUREAU OF INVESTI-
GATION CONSISTENT WITH APPLICABLE STATE  AND  FEDERAL  LAWS,  RULES  AND
REGULATIONS.  THE  APPLICANT SHALL PAY THE FEE FOR SUCH CRIMINAL HISTORY
INFORMATION AS ESTABLISHED PURSUANT TO ARTICLE THIRTY-FIVE OF THE EXECU-
TIVE LAW. THE STATE DIVISION OF CRIMINAL JUSTICE SERVICES SHALL PROMPTLY
NOTIFY THE COMMISSION IN THE EVENT A CURRENT  OR  PROSPECTIVE  LICENSEE,
WHO  WAS  THE  SUBJECT  OF SUCH CRIMINAL HISTORY INFORMATION PURSUANT TO
THIS SECTION, IS ARRESTED FOR A CRIME OR OFFENSE IN THIS STATE AFTER THE
DATE THE CHECK WAS PERFORMED.
  4. PRIMARY REGISTRATIONS SHALL EXPIRE FIVE  YEARS  FROM  THE  DATE  OF
SUBMISSION, PROVIDED, HOWEVER, ANY SUB-REGISTRATION OR SUB-LICENSE SHALL
CONTINUE  THROUGH  ITS  EXPIRATION.  NOTWITHSTANDING THIS PROVISION, THE
COMMISSION MAY SUSPEND ANY SUB-REGISTRATION OR SUB-LICENSE THAT  HAS  AN
EXPIRED PRIMARY REGISTRATION UNTIL SUCH PRIMARY REGISTRATION IS RENEWED.
THE  COMMISSION SHALL ESTABLISH A SCHEDULE TO REGISTER ANY INDIVIDUAL OR
ENTITY WHO POSSESSED A SUB-REGISTRATION  OR  SUB-LICENSE  PRIOR  TO  THE
IMPLEMENTATION OF THIS SECTION.
  5.  THE COMMISSION SHALL PROMULGATE RULES AND REGULATIONS TO IMPLEMENT
THE PROVISIONS OF THIS SECTION AND ENSURE THAT ALL LICENSING AND  REGIS-
TRATION  REQUIREMENTS OF THIS CHAPTER AND ARTICLE THIRTY-FOUR OF THE TAX
LAW ARE ADEQUATELY ADDRESSED IN THE IMPLEMENTATION.
  § 2. Section 1301 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 31-a to read as follows:
  31-A.  "NON-GAMING  EMPLOYEE".  ANY  NATURAL  PERSON,  NOT   OTHERWISE
INCLUDED  IN  THE  DEFINITION OF CASINO KEY EMPLOYEE OR GAMING EMPLOYEE,
WHO IS EMPLOYED BY A GAMING FACILITY LICENSEE, OR A HOLDING OR  INTERME-
DIARY  COMPANY  OF A GAMING FACILITY LICENSEE, AND PERFORMS SERVICES AND
DUTIES UPON THE PREMISES OF A  GAMING  FACILITY,  WHOSE  DUTIES  DO  NOT
RELATE  TO  THE OPERATION OF GAMING ACTIVITIES, AND WHO IS NOT REGULARLY

S. 1509                            72                            A. 2009

REQUIRED TO WORK IN RESTRICTED AREAS SUCH THAT REGISTRATION  OF  A  NON-
GAMING EMPLOYEE IS APPROPRIATE.
  §  3.  Paragraph  (c)  of subdivision 1 of section 1318 of the racing,
pari-mutuel wagering and breeding law, as added by chapter  174  of  the
laws of 2013, is amended to read as follows:
  (c)  the  conviction of the applicant, or of any person required to be
qualified under this article as a condition of a license, of any offense
in any jurisdiction which is or would  be  a  [felony  or  other]  crime
involving  public  integrity,  embezzlement, theft, fraud, [or] perjury,
REPRESENTS A SIGNIFICANT THREAT TO PUBLIC  SAFETY,  OR  WOULD  OTHERWISE
POSE A THREAT TO THE EFFECTIVE REGULATION OF CASINO GAMING;
  § 4. Subdivision 4 of section 1322 of the racing, pari-mutuel wagering
and  breeding  law,  as  added  by  chapter  174 of the laws of 2013, is
amended to read as follows:
  4. All applicants, licensees, registrants, and any  other  person  who
shall  be  qualified  pursuant to this article shall have the continuing
duty to provide any assistance or information required  by  the  commis-
sion,  and  to  cooperate  in  any  inquiry,  investigation  or  hearing
conducted by the commission. If, upon issuance of a  formal  request  to
answer  or  produce  information,  evidence or testimony, any applicant,
licensee, registrant, or any other person who shall be qualified  pursu-
ant  to this article refuses to comply, the application, license, regis-
tration or qualification of such person  may  be  SUSPENDED,  denied  or
revoked.
  § 5. Subdivision 3 of section 1323 of the racing, pari-mutuel wagering
and  breeding  law,  as  added  by  chapter  174 of the laws of 2013, is
amended to read as follows:
  3. The commission shall deny a casino  key  employee  license  to  any
applicant  who is disqualified on the basis of the criteria contained in
section [one thousand three] THIRTEEN hundred eighteen of  this  [title]
ARTICLE,  subject  to  notice and hearing.  PROVIDED THAT, NO CASINO KEY
EMPLOYEE LICENSE SHALL BE DENIED OR REVOKED ON THE BASIS OF A CONVICTION
OF ANY OF THE OFFENSES ENUMERATED IN THIS  ARTICLE  AS  DISQUALIFICATION
CRITERIA OR THE COMMISSION OF ANY ACT OR ACTS WHICH WOULD CONSTITUTE ANY
OFFENSE  UNDER  SECTION  THIRTEEN  HUNDRED  EIGHTEEN  OF  THIS  ARTICLE,
PROVIDED THAT THE APPLICANT HAS AFFIRMATIVELY  DEMONSTRATED  THE  APPLI-
CANT'S   REHABILITATION,  PURSUANT  TO  ARTICLE  TWENTY-THREE-A  OF  THE
CORRECTION LAW.
  § 6. Subdivision 4 of section 1323 of the racing, pari-mutuel wagering
and breeding law, as added by chapter  174  of  the  laws  of  2013,  is
amended to read as follows:
  4.  Upon  [receipt of such criminal history information] DETERMINATION
THAT AN APPLICANT IS DISQUALIFIED ON THE BASIS OF THE APPLICANT'S CRIMI-
NAL HISTORY, the commission shall provide such applicant with a copy  of
such criminal history information, together with a copy of article twen-
ty-three-A  of  the  correction law, and inform such applicant of his or
her right to seek correction of any incorrect information  contained  in
such criminal history information pursuant to regulations and procedures
established  by  the  division  of  criminal justice services. Except as
otherwise provided by law, such criminal history  information  shall  be
confidential  and  any  person who willfully permits the release of such
confidential criminal history information to persons  not  permitted  to
receive such information shall be guilty of a misdemeanor.
  §  7.  Section  1324  of the racing, pari-mutuel wagering and breeding
law, as added by chapter 174 of the laws of 2013, is amended to read  as
follows:

S. 1509                            73                            A. 2009

  § 1324. Gaming AND NON-GAMING employee registration.  1. No person may
commence  employment  as  a  gaming  OR  NON-GAMING employee unless such
person has a valid registration [on file with the] ISSUED BY THE commis-
sion, which registration shall be prepared and filed in accordance  with
the regulations promulgated hereunder.
  2.  A  gaming  OR  NON-GAMING  employee  registrant shall produce such
information as the commission by regulation may require. [Subsequent  to
the  registration  of a gaming employee, the executive director may] THE
COMMISSION MAY DENY, revoke, suspend, limit, or otherwise  restrict  the
registration  upon  a finding that the registrant is disqualified on the
basis of the criteria contained in section [one thousand three] THIRTEEN
hundred eighteen of this [title] ARTICLE.  If  a  gaming  OR  NON-GAMING
employee  registrant  has  not  been  employed  in any position within a
gaming facility for a period of three years, the  registration  of  that
gaming OR NON-GAMING employee shall lapse.
  3.  No  gaming  OR NON-GAMING employee registration shall be denied or
revoked on the basis  of  a  [misdemeanor]  conviction  of  any  of  the
offenses  enumerated in this article as disqualification criteria or the
commission of any act or acts which would constitute any  offense  under
section  [one  thousand three] THIRTEEN hundred eighteen of this [title]
ARTICLE, provided that the registrant has affirmatively demonstrated the
registrant's rehabilitation, pursuant to article twenty-three-A  of  the
correction law.
  4.  For the purposes of this section, each GAMING OR NON-GAMING regis-
trant shall submit to the commission  the  registrant's  name,  address,
fingerprints  and  written consent for a criminal history information to
be performed. The commission is hereby authorized  to  exchange  finger-
print  data  with and receive criminal history information as defined in
paragraph (c) of subdivision one of section eight  hundred  forty-five-b
of  the  executive  law  from  the  state  division  of criminal justice
services and the federal bureau of investigation consistent with  appli-
cable  state  and  federal  laws,  rules and regulations. The registrant
shall pay the fee for such criminal history information  as  established
pursuant to article thirty-five of the executive law. The state division
of criminal justice services shall promptly notify the commission in the
event  a  current  or  prospective  licensee  OR REGISTRANT, who was the
subject of a criminal history information pursuant to this  section,  is
arrested  for  a crime or offense in this state after the date the check
was performed.
  5. Upon [receipt of such criminal history  information]  DETERMINATION
THAT AN APPLICANT IS DISQUALIFIED ON THE BASIS OF THE APPLICANT'S CRIMI-
NAL  HISTORY,  the  [Commission] COMMISSION shall provide such applicant
with a copy of such criminal history information, together with  a  copy
of  article twenty-three-A of the correction law, and inform such appli-
cant of his or her right to seek correction of any incorrect information
contained in such criminal history information pursuant  to  regulations
and procedures established by the division of criminal justice services.
Except  as  otherwise provided by law, such criminal history information
shall be confidential and any person who willfully permits  the  release
of such confidential criminal history information to persons not permit-
ted to receive such information shall be guilty of a misdemeanor.
  6.  EACH APPLICANT FOR A GAMING REGISTRATION SHALL PRODUCE SUCH INFOR-
MATION, DOCUMENTATION AND ASSURANCES AS MAY BE REQUIRED TO ESTABLISH  BY
CLEAR  AND  CONVINCING  EVIDENCE THE APPLICANT'S GOOD CHARACTER, HONESTY
AND INTEGRITY. SUCH INFORMATION SHALL INCLUDE DATA PERTAINING TO CHARAC-
TER, REPUTATION, CRIMINAL HISTORY  INFORMATION  AND  PRIOR  ASSOCIATIONS

S. 1509                            74                            A. 2009

WITH  GAMING  OPERATIONS  IN  ANY CAPACITY, POSITION, OR EMPLOYMENT IN A
JURISDICTION THAT PERMITS SUCH ACTIVITY.
  §  8.  Section  1325  of the racing, pari-mutuel wagering and breeding
law, as added by chapter 174 of the laws of 2013, is amended to read  as
follows:
  §  1325.  Approval, denial and renewal of employee licenses and regis-
trations. 1. Upon the filing of an application for a casino key employee
license or gaming employee registration required  by  this  article  and
after  submission of such supplemental information as the commission may
require, the commission shall conduct or  cause  to  be  conducted  such
investigation  into  the qualification of the applicant, and the commis-
sion shall conduct such hearings concerning  the  qualification  of  the
applicant,  in  accordance  with its regulations, as may be necessary to
determine qualification for  such  license  OR  REGISTRATION.  UPON  THE
FILING  OF  AN  APPLICATION  FOR A NON-GAMING EMPLOYEE REGISTRATION, AND
AFTER SUBMISSION OF SUCH SUPPLEMENTAL INFORMATION AS THE COMMISSION  MAY
REQUIRE,  THE  COMMISSION MAY, IN ITS DISCRETION, CONDUCT OR CAUSE TO BE
CONDUCTED AN INVESTIGATION INTO THE QUALIFICATION OF SUCH APPLICANT.
  2. After such investigation, the commission may either deny the appli-
cation or grant a license OR REGISTRATION to an applicant whom it deter-
mines to be qualified to hold such license OR REGISTRATION. THE GRANTING
OF ANY SUCH LICENSE OR REGISTRATION SHALL APPLY ONLY TO  THE  JOB  TITLE
INCLUDED IN THE APPLICATION AND TO ITS ASSOCIATED DUTIES. THE COMMISSION
MAY,  UPON  REQUEST  AND  AT  ITS SOLE DISCRETION, ALLOW TRANSFER OF THE
LICENSE OR REGISTRATION TO ANOTHER JOB TITLE UPON DETERMINATION THAT THE
ORIGINAL APPLICATION WOULD HAVE BEEN SATISFACTORY HAD IT BEEN  SUBMITTED
FOR THE NEW TITLE.
  3.  The  commission  shall  have the authority to deny any application
pursuant to the provisions of this article following notice and opportu-
nity for hearing.
  4. When the commission grants [an application] A LICENSE OR  REGISTRA-
TION,  the  commission may limit or place such restrictions thereupon as
it may deem necessary in the public interest.
  5. After an application for a casino key employee license  is  submit-
ted,  final  action  of the commission shall be taken within ninety days
after completion of all hearings and investigations and the  receipt  of
all information required by the commission.
  6.  Licenses  and registrations of casino key employees and gaming AND
NON-GAMING employees issued pursuant to this article shall remain  valid
for five years unless suspended, revoked or voided pursuant to law. Such
licenses  and  registrations  may  be renewed by the holder thereof upon
application, on a form prescribed by the commission, and payment of  the
applicable fee. Notwithstanding the [forgoing] FOREGOING, if a gaming OR
NON-GAMING  employee  registrant  has  not been employed in any position
within a gaming facility for a period of three years,  the  registration
of that gaming OR NON-GAMING employee shall lapse.
  7.  SUBSEQUENT  TO  THE  ISSUANCE  OF  A  LICENSE OR REGISTRATION, THE
COMMISSION MAY SUSPEND, REVOKE, OR LIMIT  THE  LICENSE  OR  REGISTRATION
UPON  A  FINDING  THAT  AN APPLICANT IS NO LONGER QUALIFIED TO HOLD SUCH
LICENSE OR REGISTRATION IN ACCORDANCE WITH THIS ARTICLE, OR  AS  IT  MAY
DEEM  NECESSARY  TO PROTECT THE PUBLIC INTEREST, FOLLOWING NOTICE AND AN
OPPORTUNITY FOR A HEARING. THE  COMMISSION  MAY  TEMPORARILY  SUSPEND  A
LICENSE OR REGISTRATION PENDING ANY INVESTIGATION, PROSECUTION, OR HEAR-
ING  IF  IT  IS  DEEMED  NECESSARY  TO DO SO TO PROTECT THE INTEGRITY OF
GAMING ACTIVITIES.

S. 1509                            75                            A. 2009

  8. The commission shall establish by regulation appropriate fees to be
paid upon the filing of the required applications. Such  fees  shall  be
deposited into the commercial gaming revenue fund.
  § 9. Subdivision 3 of section 1326 of the racing, pari-mutuel wagering
and  breeding  law,  as  added  by  chapter  174 of the laws of 2013, is
amended to read as follows:
  3. Vendors providing goods and services to gaming  facility  licensees
or  applicants ancillary to gaming, INCLUDING VENDORS WITH ACCESS TO THE
PLAYER DATABASE OR SENSITIVE PLAYER INFORMATION, VENDORS WITH HEIGHTENED
SECURITY ACCESS OR INFORMATION, AND JUNKET ENTERPRISES shall be required
to be licensed as an ancillary casino vendor enterprise and shall comply
with the standards for casino vendor license applicants. THE  COMMISSION
MAY  ALSO REQUIRE ANY VENDOR REGULARLY CONDUCTING OVER TWO HUNDRED FIFTY
THOUSAND DOLLARS OF BUSINESS WITH A GAMING LICENSEE OR APPLICANT  WITHIN
A TWELVE-MONTH PERIOD OR ONE HUNDRED THOUSAND DOLLARS OF BUSINESS WITHIN
A THREE-MONTH PERIOD TO BE LICENSED AS AN ANCILLARY GAMING VENDOR.
  §  10. Subdivision 4 of section 1326 of the racing, pari-mutuel wager-
ing and breeding law, as added by chapter 174 of the laws  of  2013,  is
amended to read as follows:
  4.  Each  casino vendor enterprise required to be licensed pursuant to
subdivision one of this section, as well as its owners;  management  and
supervisory  personnel[;  and employees if such employees have responsi-
bility for services to a gaming facility applicant  or  licensee,]  must
qualify  under  the  standards, except residency, established for quali-
fication of a casino key employee under this article. EMPLOYEES OF  SUCH
VENDORS  THAT  HAVE  RESPONSIBILITY  FOR  SERVICES  TO A GAMING FACILITY
APPLICANT OR LICENSEE MUST QUALIFY UNDER THE STANDARDS  ESTABLISHED  FOR
QUALIFICATION OF A GAMING EMPLOYEE REGISTRATION UNDER THIS ARTICLE.
  EACH ANCILLARY CASINO VENDOR ENTERPRISE REQUIRED TO BE LICENSED PURSU-
ANT TO SUBDIVISION THREE OF THIS SECTION, AS WELL AS ITS OWNERS; MANAGE-
MENT;  SUPERVISORY  PERSONNEL AND EMPLOYEES THAT HAVE RESPONSIBILITY FOR
SERVICES TO A GAMING FACILITY APPLICANT OR LICENSEE MUST  QUALIFY  UNDER
THE  STANDARDS ESTABLISHED FOR QUALIFICATION OF A GAMING EMPLOYEE REGIS-
TRATION UNDER THIS ARTICLE.
  § 11. Subdivision 5 of section 1326 of the racing, pari-mutuel  wager-
ing  and  breeding  law, as added by chapter 174 of the laws of 2013, is
amended to read as follows:
  5. Any vendor that offers goods  or  services  to  a  gaming  facility
applicant or licensee IN EXCESS OF TWENTY-FIVE THOUSAND DOLLARS WITHIN A
TWELVE-MONTH PERIOD that is not included in subdivision one [or], two OR
THREE of this section including, but not limited to site contractors and
subcontractors,  shopkeepers located within the facility, gaming schools
that possess slot machines for the  purpose  of  instruction,  [and  any
non-supervisory  employee of a junket enterprise licensed under subdivi-
sion three of this section] VENDING MACHINE PROVIDERS, LINEN  SUPPLIERS,
GARBAGE  HANDLERS,  MAINTENANCE  COMPANIES, LIMOUSINE SERVICES, AND FOOD
PURVEYORS, shall be required to register with the commission in  accord-
ance with the regulations promulgated under this article.
  PRIOR  TO CONDUCTING BUSINESS WITH ANY VENDOR NOT INCLUDED IN SUBDIVI-
SION ONE OR TWO OF THIS SECTION, WHICH IS PROVIDING BUSINESS WORTH  LESS
THAN  THE  THRESHOLDS  PROVIDED  IN  THIS SUBDIVISION, A GAMING FACILITY
APPLICANT OR LICENSEE SHALL NOTIFY THE COMMISSION OF THE INTENDED TRANS-
ACTION, ALONG WITH ANY HISTORY OF  TRANSACTIONS  WITH  SUCH  VENDOR,  TO
ALLOW  FOR  VERIFICATION THAT THE LICENSING REQUIREMENTS OF THIS SECTION
DO NOT APPLY.

S. 1509                            76                            A. 2009

  ALL EMPLOYEES OF A VENDOR REGISTERED PURSUANT  TO  THIS  SECTION  THAT
PROVIDE  SERVICES UPON THE PREMISES OF A GAMING FACILITY ARE REQUIRED TO
BE REGISTERED AS AND MEET THE STANDARDS OF A NON-GAMING EMPLOYEE.
  Notwithstanding  the provisions aforementioned, the executive director
may, consistent with the public interest and the policies of this  arti-
cle, direct that individual vendors registered pursuant to this subdivi-
sion  be required to apply for either a casino vendor enterprise license
pursuant to subdivision one of this  section,  or  an  ancillary  vendor
industry  enterprise  license  pursuant  to  subdivision  three  of this
section, as directed by the commission. The executive director may  also
order  that  any enterprise licensed as or required to be licensed as an
ancillary casino vendor enterprise pursuant to subdivision three of this
section be required to apply for  a  casino  vendor  enterprise  license
pursuant  to subdivision one of this section. The executive director may
also, in his or her  discretion,  order  that  an  independent  software
contractor  not otherwise required to be registered be either registered
as a vendor pursuant to this subdivision  or  be  licensed  pursuant  to
either subdivision one or three of this section.
  [Each  ancillary  casino  vendor  enterprise  required  to be licensed
pursuant to subdivision three of this section, as well  as  its  owners,
management  and  supervisory  personnel, and employees if such employees
have responsibility for services  to  a  gaming  facility  applicant  or
licensee, shall establish their good character, honesty and integrity by
clear  and convincing evidence and shall provide such financial informa-
tion as may be required by the commission. Any enterprise required to be
licensed as an ancillary  casino  vendor  enterprise  pursuant  to  this
section  shall  be permitted to transact business with a gaming facility
licensee upon filing of the appropriate  vendor  registration  form  and
application for such licensure.]
  §  12. Subdivision 6 of section 1326 of the racing, pari-mutuel wager-
ing and breeding law, as added by chapter 174 of the laws  of  2013,  is
amended to read as follows:
  6.  Any applicant, licensee or qualifier of a casino vendor enterprise
license or of an ancillary casino vendor enterprise license under subdi-
vision one of this section, and any vendor registrant under  subdivision
five of this section shall be disqualified in accordance with the crite-
ria  contained in section [one thousand three] THIRTEEN hundred eighteen
of this article, except that no such [ancillary casino vendor enterprise
license under subdivision three of this section or  vendor  registration
under subdivision five of this section] APPLICANT, LICENSEE OR QUALIFIER
shall be denied or revoked if such [vendor registrant] APPLICANT, LICEN-
SEE  OR  QUALIFIER can affirmatively demonstrate rehabilitation pursuant
to article twenty-three-A of the correction law.
  § 13. Section 1326 of the racing, pari-mutuel  wagering  and  breeding
law is amended by adding a new subdivision 11 to read as follows:
  11. NOTWITHSTANDING THE PRECEDING SUBDIVISIONS, THE EXECUTIVE DIRECTOR
MAY,  IN  HIS  OR  HER DISCRETION, WAIVE ANY OF THE REQUIREMENTS OF THIS
SECTION WHEN A GAMING FACILITY APPLICANT  OR  LICENSEE  CAN  DEMONSTRATE
THAT THE BUSINESS RELATIONSHIP WITH ANY INDIVIDUAL VENDOR WILL BE LIMIT-
ED  IN  SCOPE AND DURATION AND THAT THE PUBLIC INTEREST AND THE POLICIES
OF THIS ARTICLE WOULD NOT BE DIMINISHED BY SUCH  WAIVER.  IN  REQUESTING
SUCH WAIVER, THE GAMING FACILITY APPLICANT OR LICENSEE SHALL PROVIDE ANY
AND  ALL  INFORMATION  NEEDED TO MAKE SUCH DETERMINATION AND ANY AND ALL
INFORMATION NEEDED AS A CONDITION OF SUCH WAIVER. THE EXECUTIVE DIRECTOR
MAY REVOKE ANY SUCH WAIVER AT ANY TIME UPON  A  DETERMINATION  THAT  THE
CIRCUMSTANCES UPON WHICH SUCH WAIVER WAS GRANTED HAVE CHANGED.

S. 1509                            77                            A. 2009

  § 14. This act shall take effect immediately.

                                 PART LL

  Section  1.  Subparagraph  (i)  of  paragraph  (a) of subdivision 2 of
section 1306-a of the real property tax law, as amended by section 6  of
part N of chapter 58 of the laws of 2011, is amended to read as follows:
  (i) The tax savings for each parcel receiving the exemption authorized
by section four hundred twenty-five of this chapter shall be computed by
subtracting  the  amount  actually  levied  against  the parcel from the
amount that would have been levied if not for  the  exemption,  provided
however,  that [beginning with] FOR the two thousand eleven-two thousand
twelve THROUGH TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN school [year]
YEARS, the tax savings applicable to any "portion" (which as used herein
shall mean that part of  an  assessing  unit  located  within  a  school
district) shall not exceed the tax savings applicable to that portion in
the  prior  school  year multiplied by one hundred two percent, with the
result rounded to the nearest dollar; AND PROVIDED FURTHER  THAT  BEGIN-
NING WITH THE TWO THOUSAND NINETEEN-TWO THOUSAND TWENTY SCHOOL YEAR: (A)
FOR  PURPOSES  OF THE EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWEN-
TY-FIVE OF THIS CHAPTER, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL
NOT EXCEED THE TAX SAVINGS FOR THE PRIOR YEAR, AND (B) FOR  PURPOSES  OF
THE  CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF
THE TAX LAW, THE TAX SAVINGS APPLICABLE TO ANY PORTION SHALL NOT  EXCEED
THE  TAX  SAVINGS  APPLICABLE  TO  THAT PORTION IN THE PRIOR SCHOOL YEAR
MULTIPLIED BY ONE HUNDRED TWO PERCENT, WITH THE RESULT  ROUNDED  TO  THE
NEAREST  DOLLAR.  The tax savings attributable to the basic and enhanced
exemptions shall be calculated separately. It shall be the  responsibil-
ity  of  the  commissioner  to  calculate  tax  savings  limitations for
purposes of this subdivision.
  § 2. Subparagraph (G) of paragraph 1 of subsection  (eee)  of  section
606  of  the tax law, as amended by section 8 of part A of chapter 73 of
the laws of 2016, is amended to read as follows:
  (G) "STAR tax savings" means the tax savings attributable to the  STAR
exemption  within  a  portion of a school district, as determined by the
commissioner pursuant to subdivision two  of  section  thirteen  hundred
six-a of the real property tax law FOR PURPOSES OF THE CREDIT AUTHORIZED
BY THIS SUBSECTION.
  § 3. This act shall take effect immediately.

                                 PART MM

  Section  1.  Section  1405-B of the tax law is amended by adding a new
subdivision (c) to read as follows:
  (C) THE INFORMATION CONTAINED WITHIN INFORMATION RETURNS  FILED  UNDER
SUBDIVISION  (B)  OF THIS SECTION MAY BE PROVIDED BY THE COMMISSIONER TO
LOCAL ASSESSORS FOR USE IN REAL PROPERTY TAX  ADMINISTRATION,  AND  SUCH
INFORMATION  SHALL NOT BE SUBJECT TO THE SECRECY PROVISIONS SET FORTH IN
SECTION FOURTEEN HUNDRED EIGHTEEN OF THIS  CHAPTER,  PROVIDED,  HOWEVER,
THAT  THE  COMMISSIONER  SHALL  NOT  DISCLOSE SOCIAL SECURITY NUMBERS OR
EMPLOYER IDENTIFICATION NUMBERS.
  § 2. This act shall take effect January 1, 2020.

                                 PART NN

S. 1509                            78                            A. 2009

  Section 1. Paragraph 3 of subsection (e-1) of section 606 of  the  tax
law,  as added by section 2 of part K of chapter 59 of the laws of 2014,
is amended as follows:
  (3)  Determination  of  credit.  For  taxable years after two thousand
thirteen [and prior to two thousand sixteen], the amount of  the  credit
allowable under this subsection shall be determined as follows:
If household gross income    Excess real property    The credit amount is
for the taxable year is:     taxes are the excess    the following
                             of real property tax    percentage of excess
                             equivalent or the       property taxes:
                             excess of qualifying
                             real property taxes
                             over the following
                             percentage of
                             household gross
                             income:
Less than $100,000                   4                    4.5
$100,000 to less than                5                    3.0
$150,000
$150,000 to less than                6                    1.5
$200,000
  Notwithstanding  the  foregoing  provisions, the maximum credit deter-
mined under this subparagraph may not exceed five hundred dollars.
  § 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2016;  provided,  however,  that
the amendments to subsection (e-1) of section 606 of the tax law made by
section  one  of this act shall not affect the repeal of such subsection
and shall be deemed to be repealed therewith.

                                 PART OO

  Section 1. Subdivision v of section 233 of the real property  law,  as
amended  by  chapter  566  of  the  laws  of 1996, is amended to read as
follows:
  v. 1. On and after April  first,  nineteen  hundred  eighty-nine,  the
commissioner  of  housing and community renewal shall have the power and
duty to enforce and  ensure  compliance  with  the  provisions  of  this
section.  However,  the commissioner shall not have the power or duty to
enforce manufactured home park rules and regulations  established  under
subdivision f of this section.
  2.  On  or  before  January  first, nineteen hundred eighty-nine, each
manufactured home park owner  or  operator  shall  file  a  registration
statement  with  the  commissioner  and  shall thereafter file an annual
registration statement on or before January  first  of  each  succeeding
year. The commissioner, by regulation, shall provide that such registra-
tion  statement  shall  include  only the names of all persons owning an
interest in the park, the names of all tenants of the park, all services
provided by the park owner to the tenants and  a  copy  of  all  current
manufactured  home  park  rules  and  regulations. THE REPORTING OF SUCH
INFORMATION TO THE COMMISSIONER OF  TAXATION  AND  FINANCE  PURSUANT  TO
SUBPARAGRAPH  (B)  OF  PARAGRAPH  SIX OF SUBSECTION (EEE) OF SECTION SIX
HUNDRED SIX OF THE TAX LAW SHALL BE DEEMED TO SATISFY  THE  REQUIREMENTS
OF THIS PARAGRAPH.
  3. Whenever there shall be a violation of this section, an application
may  be made by the commissioner of housing and community renewal in the
name of the people of the state of New York to a court or justice having

S. 1509                            79                            A. 2009

jurisdiction by a special proceeding to issue an  injunction,  and  upon
notice  to  the  defendant  of  not  less  than five days, to enjoin and
restrain the continuance of such violation; and if it  shall  appear  to
the  satisfaction  of  the  court  or justice that the defendant has, in
fact, violated this section, an injunction may be issued by  such  court
or  justice,  enjoining  and  restraining any further violation and with
respect to this subdivision, directing  the  filing  of  a  registration
statement.  In any such proceeding, the court may make allowances to the
commissioner of housing and community renewal of a sum not exceeding two
thousand dollars against each defendant, and direct restitution.   When-
ever  the  court  shall  determine  that a violation of this section has
occurred, the court may impose a civil penalty  of  not  more  than  one
thousand  five hundred dollars for each violation. Such penalty shall be
deposited in the manufactured home cooperative fund, created pursuant to
section fifty-nine-h of the private housing finance law.  In  connection
with  any  such  proposed  application,  the commissioner of housing and
community renewal is authorized to take proof and make  a  determination
of  the  relevant  facts  and  to issue subpoenas in accordance with the
civil practice law and rules. The provisions of this  subdivision  shall
not impair the rights granted under subdivision u of this section.
  §  2.  Subparagraph  (B) of paragraph 6 of subsection (eee) of section
606 of the tax law, as amended by section 8 of part A of chapter  73  of
the laws of 2016, is amended to read as follows:
  (B)  (I)  In  the case of property consisting of a mobile home that is
described in paragraph (1) of subdivision two of  section  four  hundred
twenty-five  of  the  real  property  tax  law, the amount of the credit
allowable with respect to such mobile home shall be equal to  the  basic
STAR  tax  savings for the school district portion, or the enhanced STAR
tax savings for the school district portion,  whichever  is  applicable,
that  would  be  applied  to  a separately assessed parcel in the school
district portion with a taxable assessed value equal to twenty  thousand
dollars  multiplied  by  the  latest  state equalization rate or special
equalization rate for the assessing unit in which  the  mobile  home  is
located. Provided, however, that if the commissioner is in possession of
information,  including  but  not  limited  to  assessment records, that
demonstrates to the  commissioner's  satisfaction  that  the  taxpayer's
mobile  home  is  worth  more  than  twenty  thousand dollars, or if the
taxpayer provides the commissioner with such information, the taxpayer's
credit shall be increased accordingly, but in no case shall  the  credit
exceed the basic STAR tax savings or enhanced STAR tax savings, whichev-
er is applicable, for the school district portion.
  (II)  THE  COMMISSIONER  MAY  IMPLEMENT  AN  ELECTRONIC SYSTEM FOR THE
REPORTING OF INFORMATION BY OWNERS AND OPERATORS  OF  MANUFACTURED  HOME
PARKS,  AS DEFINED BY SECTION TWO HUNDRED THIRTY-THREE OF THE REAL PROP-
ERTY LAW. UPON THE IMPLEMENTATION OF SUCH A SYSTEM, EACH SUCH OWNER  AND
OPERATOR SHALL FILE QUARTERLY ELECTRONIC STATEMENTS WITH THE COMMISSION-
ER NO LATER THAN TWENTY-ONE DAYS AFTER THE END OF EACH CALENDAR QUARTER.
SUCH STATEMENT SHALL REQUIRE REPORTING OF NAMES OF ALL PERSONS OWNING AN
INTEREST  IN  THE  PARK,  THE SERVICES PROVIDED BY THE PARK OWNER TO THE
TENANTS, THE NAMES AND ADDRESSES OF ALL TENANTS OF THE PARK, WHETHER THE
TENANT LEASES OR OWNS THE HOME, AND SUCH ADDITIONAL INFORMATION  AS  THE
COMMISSIONER  MAY  DEEM  NECESSARY  FOR THE PROPER ADMINISTRATION OF THE
STAR EXEMPTION ESTABLISHED PURSUANT TO SECTION FOUR HUNDRED  TWENTY-FIVE
OF  THE REAL PROPERTY TAX LAW AND THE STAR CREDIT AND ANY OTHER PROPERTY
TAX-BASED CREDIT ESTABLISHED PURSUANT TO THIS SECTION. IN THE CASE OF  A
REGISTRATION  STATEMENT  FOR  THE FIRST CALENDAR QUARTER OF A YEAR, SUCH

S. 1509                            80                            A. 2009

STATEMENT SHALL ALSO INCLUDE A COPY OF  ALL  CURRENT  MANUFACTURED  HOME
PARK  RULES  AND REGULATIONS. THE COMMISSIONER SHALL PROVIDE THE COMMIS-
SIONER OF HOUSING AND COMMUNITY RENEWAL WITH THE  INFORMATION  CONTAINED
IN  EACH  QUARTERLY  REPORT  NO LATER THAN THIRTY DAYS AFTER THE RECEIPT
THEREOF.
  § 3. This act shall take effect immediately.

                                 PART PP

  Section 1. Subparagraph (iv) of paragraph  (b)  of  subdivision  4  of
section  425  of  the  real property tax law, as amended by section 2 of
part B of chapter 59 of the laws of 2018, is amended to read as follows:
  (iv) (A) Effective with applications for  the  enhanced  exemption  on
final  assessment  rolls  to  be completed in two thousand nineteen, the
application form shall indicate that all owners of the property and  any
owners'  spouses  residing on the premises must have their income eligi-
bility verified annually  by  the  department  and  must  furnish  their
taxpayer  identification  numbers  in  order to facilitate matching with
records of the department. The income eligibility of such persons  shall
be  verified  annually  by  the  department,  and the assessor shall not
request income documentation from them. All applicants for the  enhanced
exemption  and  all  assessing units shall be required to participate in
this program, which shall be  known  as  the  STAR  income  verification
program.
  (B) EFFECTIVE WITH FINAL ASSESSMENT ROLLS TO BE COMPLETED IN TWO THOU-
SAND TWENTY, THE COMMISSIONER SHALL ALSO ANNUALLY VERIFY THE ELIGIBILITY
OF SUCH PERSONS FOR THE ENHANCED EXEMPTION ON THE BASIS OF AGE AND RESI-
DENCY AS WELL AS INCOME.
  (C) Where the commissioner finds that the enhanced exemption should be
replaced  with a basic exemption because [the income limitation applica-
ble to the enhanced exemption has been exceeded] THE  PROPERTY  IS  ONLY
ELIGIBLE  FOR  A  BASIC  EXEMPTION, he or she shall provide the property
owners with notice and an opportunity  to  submit  to  the  commissioner
evidence to the contrary. Where the commissioner finds that the enhanced
exemption  should  be  removed  or  denied without being replaced with a
basic exemption because [the income limitation applicable to  the  basic
exemption  has  also  been  exceeded]  THE  PROPERTY IS NOT ELIGIBLE FOR
EITHER EXEMPTION, he or she  shall  provide  the  property  owners  with
notice  and an opportunity to submit to the commissioner evidence to the
contrary. In either case, if the owners fail to respond to  such  notice
within  forty-five  days  from the mailing thereof, or if their response
does not show to the commissioner's satisfaction that  the  property  is
eligible  for  the  exemption claimed, the commissioner shall direct the
assessor or other person having custody or  control  of  the  assessment
roll  or  tax roll to either replace the enhanced exemption with a basic
exemption, or to remove or deny the enhanced exemption without replacing
it with a  basic  exemption,  as  appropriate.  The  commissioner  shall
further  direct  such  person  to  correct  the roll accordingly. Such a
directive shall be binding upon the  assessor  or  other  person  having
custody  or  control  of  the  assessment roll or tax roll, and shall be
implemented by such person without the need for further documentation or
approval.
  [(C)] (D) Notwithstanding  any  provision  of  law  to  the  contrary,
neither  an  assessor nor a board of assessment review has the authority
to consider an objection to the replacement or removal or denial  of  an
exemption  pursuant  to  this  subdivision,  nor  may  such an action be

S. 1509                            81                            A. 2009

reviewed in a proceeding to review an assessment pursuant to  title  one
or  one-A  of  article seven of this chapter. Such an action may only be
challenged before the department. If a taxpayer is dissatisfied with the
department's  final determination, the taxpayer may appeal that determi-
nation to the state board of real property tax services in  a  form  and
manner  to be prescribed by the commissioner. Such appeal shall be filed
within forty-five days from  the  issuance  of  the  department's  final
determination. If dissatisfied with the state board's determination, the
taxpayer  may  seek judicial review thereof pursuant to article seventy-
eight of the civil practice law and rules. The taxpayer shall  otherwise
have  no  right to challenge such final determination in a court action,
administrative proceeding or any other form of  legal  recourse  against
the  commissioner,  the department, the state board of real property tax
services, the assessor or other person having custody or control of  the
assessment roll or tax roll regarding such action.
  §  2. Paragraph (c) of subdivision 13 of section 425 of the real prop-
erty tax law, as amended by section 1 of part J of  chapter  57  of  the
laws  of  2013,  is amended, and a new paragraph (f) is added to read as
follows:
  (c) Additional consequences. A penalty tax may be imposed pursuant  to
this  subdivision whether or not the improper exemption has been revoked
in the manner provided by this section. In addition, a person or persons
who are found to have made a material misstatement shall be disqualified
from further exemption pursuant to this section,  AND  FROM  THE  CREDIT
AUTHORIZED  BY  SUBSECTION  (EEE)  OF SECTION SIX HUNDRED SIX OF THE TAX
LAW, for a period of [five years if  such  misstatement  appears  on  an
application  filed  prior  to October first, two thousand thirteen, and]
six years [if such misstatement appears on an application  filed  there-
after].  In  addition,  such  person or persons may be subject to prose-
cution pursuant to the penal law.
  (F) ASSESSOR NOTIFICATION. THE ASSESSOR SHALL INFORM THE  COMMISSIONER
WHENEVER  A PERSON OR PERSONS IS FOUND TO HAVE MADE A MATERIAL MISSTATE-
MENT ON AN APPLICATION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION.
  § 3. Paragraph (13) of subsection (eee) of section 606 of the tax  law
is amended by adding a new subparagraph (E) to read as follows:
  (E) A TAXPAYER WHO IS FOUND TO HAVE MADE A MATERIAL MISSTATEMENT ON AN
APPLICATION FOR THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE DISQUALI-
FIED  FROM RECEIVING SUCH CREDIT FOR SIX YEARS. AS USED HEREIN, THE TERM
"MATERIAL MISSTATEMENT" SHALL HAVE THE SAME  MEANING  AS  SET  FORTH  IN
PARAGRAPH  (A)  OF  SUBDIVISION THIRTEEN OF SECTION FOUR HUNDRED TWENTY-
FIVE OF THE REAL PROPERTY TAX LAW.
  § 4. Subparagraph (E) of paragraph (10) of subsection (eee) of section
606 of the tax law, as amended by section 8 of part A of chapter  73  of
the laws of 2016, is amended to read as follows:
  (E)  If  the  commissioner determines after issuing an advance payment
that it was issued in an excessive amount or to an ineligible or  incor-
rect  party,  the  commissioner shall be empowered to utilize any of the
procedures for collection, levy and lien  of  personal  income  tax  set
forth  in  this article, any other relevant procedures referenced within
the provisions of this article, and any other law as may be  applicable,
to  recoup the improperly issued amount; PROVIDED THAT IN THE EVENT SUCH
PARTY WAS DETERMINED TO BE INELIGIBLE ON  THE  BASIS  THAT  HIS  OR  HER
PRIMARY  RESIDENCE  RECEIVED THE STAR EXEMPTION IN THE ASSOCIATED FISCAL
YEAR, THE IMPROPERLY ISSUED CREDIT AMOUNT SHALL  BE  DEEMED  A  CLERICAL
ERROR AND SHALL BE PAID UPON NOTICE AND DEMAND WITHOUT THE ISSUANCE OF A

S. 1509                            82                            A. 2009

NOTICE  OF  DEFICIENCY  AND SHALL BE ASSESSED, COLLECTED AND PAID IN THE
SAME MANNER AS TAXES.
  § 5. This act shall take effect immediately.

                                 PART QQ

  Section  1.  Section  425  of  the real property tax law is amended by
adding a new subdivision 17 to read as follows:
  17. CERTAIN DISCLOSURES AUTHORIZED. (A) NOTWITHSTANDING ANY  PROVISION
OF  LAW  TO  THE CONTRARY, WHEN THE COMMISSIONER HAS DETERMINED THAT THE
OWNER OR OWNERS OF A PARCEL OF REAL PROPERTY ARE INELIGIBLE  FOR  EITHER
THE STAR EXEMPTION AUTHORIZED BY THIS SECTION OR THE STAR CREDIT AUTHOR-
IZED  BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE
COMMISSIONER MAY DISCLOSE THE NAMES OF  SUCH  OWNER  OR  OWNERS  TO  THE
ASSESSOR  OF  THE  ASSESSING  UNIT  IN WHICH THE PROPERTY IS LOCATED. IN
ADDITION:
  (I) WHERE THE COMMISSIONER HAS FOUND THAT THE STAR EXEMPTION OR CREDIT
COULD NOT BE GRANTED BECAUSE THE INCOME OF THE OWNER OR OWNERS IS  ABOVE
THE  APPLICABLE  LIMIT, THE COMMISSIONER MAY SO ADVISE THE ASSESSOR, BUT
SHALL NOT DISCLOSE THE AMOUNT OF INCOME OF ANY SUCH OWNER OR OWNERS.
  (II) WHERE THE COMMISSIONER HAS FOUND THAT THE STAR EXEMPTION OR CRED-
IT COULD NOT BE GRANTED BECAUSE THE PROPERTY IS NOT  THE  PRIMARY  RESI-
DENCE  OF  ONE OR MORE OF THE OWNERS THEREOF, OR THAT THE OWNER'S SPOUSE
IS RECEIVING A STAR EXEMPTION OR STAR CREDIT ON ANOTHER RESIDENCE  OR  A
COMPARABLE BENEFIT ON A RESIDENCE IN ANOTHER STATE, THE COMMISSIONER MAY
SO ADVISE THE ASSESSOR. THE COMMISSIONER MAY FURTHER ADVISE THE ASSESSOR
OF  THE  FACTS  SUPPORTING THAT DETERMINATION, INCLUDING THE LOCATION OR
LOCATIONS OF THE PROPERTY OWNER'S OTHER RESIDENCE OR RESIDENCES, IF ANY.
  (III)  WHERE  THE  COMMISSIONER  HAS  FOUND  THAT  THE  ENHANCED  STAR
EXEMPTION  OR CREDIT COULD NOT BE GRANTED BECAUSE THE OWNER OR OWNERS DO
NOT MEET THE APPLICABLE AGE REQUIREMENT, THE COMMISSIONER MAY SO  ADVISE
THE  ASSESSOR,  AND MAY FURTHER ADVISE THE ASSESSOR OF THEIR BIRTH DATES
IF KNOWN.
  (IV) WHERE THE COMMISSIONER HAS FOUND THAT THE ENHANCED STAR EXEMPTION
OR CREDIT COULD NOT BE GRANTED BECAUSE THE OWNER  OR  OWNERS  FAILED  TO
ENROLL IN THE INCOME VERIFICATION PROGRAM OR FAILED TO SUBMIT THE INCOME
WORKSHEET REQUIRED THEREUNDER, THE COMMISSIONER MAY SO ADVISE THE ASSES-
SOR.
  (B)  INFORMATION DISCLOSED TO AN ASSESSOR PURSUANT TO THIS SUBDIVISION
SHALL BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION.  IT
SHALL  BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO THE
PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
  § 2. Section 467 of the real property tax law is amended by  adding  a
new subdivision 11 to read as follows:
  11. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, UPON THE
REQUEST  OF  AN  ASSESSOR, THE COMMISSIONER MAY DISCLOSE TO THE ASSESSOR
THE NAMES AND ADDRESSES OF THE OWNERS OF  PROPERTY  IN  THAT  ASSESSOR'S
ASSESSING UNIT WHO ARE RECEIVING THE ENHANCED STAR EXEMPTION OR ENHANCED
STAR  CREDIT  AND  WHOSE  FEDERAL ADJUSTED GROSS INCOME IS LESS THAN THE
UPPERMOST AMOUNT SPECIFIED BY SUBPARAGRAPH THREE  OF  PARAGRAPH  (B)  OF
SUBDIVISION  ONE  OF  THIS  SECTION (REPRESENTED THEREIN AS M + $8,400).
SUCH AMOUNT SHALL BE DETERMINED WITHOUT REGARD TO ANY LOCAL OPTIONS THAT
THE MUNICIPAL CORPORATION MAY OR MAY NOT HAVE EXERCISED IN  RELATION  TO
INCREASING OR DECREASING THE MAXIMUM INCOME ELIGIBILITY LEVEL AUTHORIZED
BY  THIS SECTION, PROVIDED THAT THE AMOUNT SO DETERMINED FOR A CITY WITH
A POPULATION OF ONE MILLION OR MORE SHALL TAKE INTO ACCOUNT THE DISTINCT

S. 1509                            83                            A. 2009

MAXIMUM INCOME ELIGIBILITY LEVEL ESTABLISHED FOR SUCH CITY BY  PARAGRAPH
(A)  OF  SUBDIVISION THREE OF THIS SECTION. IN NO CASE SHALL THE COMMIS-
SIONER DISCLOSE TO AN ASSESSOR THE AMOUNT OF AN OWNER'S FEDERAL ADJUSTED
GROSS INCOME.
  (B) THE ASSESSOR MAY USE THE INFORMATION CONTAINED IN SUCH A REPORT TO
CONTACT THOSE OWNERS WHO ARE NOT ALREADY RECEIVING THE EXEMPTION AUTHOR-
IZED  BY THIS SECTION AND TO SUGGEST THAT THEY CONSIDER APPLYING FOR IT.
PROVIDED, HOWEVER, THAT NOTHING CONTAINED HEREIN SHALL BE  CONSTRUED  AS
ENABLING  ANY  PERSON OR PERSONS TO QUALIFY FOR THE EXEMPTION AUTHORIZED
BY THIS SECTION ON THE BASIS OF THEIR  FEDERAL  ADJUSTED  GROSS  INCOME,
RATHER  THAN  ON THE BASIS OF THEIR INCOME AS DETERMINED PURSUANT TO THE
PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION.
  (C) INFORMATION DISCLOSED TO AN ASSESSOR PURSUANT TO THIS  SUBDIVISION
SHALL  BE USED ONLY FOR PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. IT
SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND SHALL NOT BE SUBJECT TO  THE
PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
  §  3. Section 1532 of the real property tax law is amended by adding a
new subdivision 5 to read as follows:
  5. INFORMATION REGARDING DECEDENTS PROVIDED BY THE COMMISSIONER  TO  A
COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES PURSUANT TO SUBSECTION (C)
OF  SECTION  SIX HUNDRED FIFTY-ONE OF THE TAX LAW SHALL BE USED ONLY FOR
PURPOSES OF REAL PROPERTY TAX ADMINISTRATION. THE CONTENTS OF THE REPORT
MAY BE SHARED WITH THE ASSESSOR AND TAX COLLECTING OFFICER OF THE MUNIC-
IPAL CORPORATION IN WHICH THE DECEDENT'S FORMER  RESIDENCE  IS  LOCATED,
AND  WITH  THE  ENFORCING OFFICER IF SUCH RESIDENCE IS SUBJECT TO DELIN-
QUENT TAXES. THE INFORMATION SHALL BE DEEMED CONFIDENTIAL OTHERWISE, AND
SHALL NOT BE SUBJECT TO THE PROVISIONS OF  ARTICLE  SIX  OF  THE  PUBLIC
OFFICERS LAW.
  § 4. Subsection (c) of section 651 of the tax law, as amended by chap-
ter 783 of the laws of 1962, is amended to read as follows:
  (c)  Decedents.  The  return for any deceased individual shall be made
and filed by his executor, administrator, or other person  charged  with
his  property.  If a final return of a decedent is for a fractional part
of a year, the due date of such return shall be the fifteenth day of the
fourth month following the close of the twelve-month period which  began
with the first day of such fractional part of the year.  NOTWITHSTANDING
ANY PROVISION OF LAW TO THE CONTRARY, WHEN A RETURN HAS BEEN FILED FOR A
DECEDENT,  THE  COMMISSIONER  MAY DISCLOSE THE DECEDENT'S NAME, ADDRESS,
AND THE DATE OF DEATH TO THE DIRECTOR OF REAL PROPERTY TAX  SERVICES  OF
THE COUNTY IN WHICH THE ADDRESS REPORTED ON SUCH RETURN IS LOCATED.
  § 5. This act shall take effect immediately.

                                 PART RR

  Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real
property  tax law, as added by section 1 of part FF of chapter 57 of the
laws of 2010, is amended to read as follows:
  (b-1) Income. For final assessment rolls to be used for  the  levy  of
taxes  for the two thousand eleven-two thousand twelve THROUGH TWO THOU-
SAND EIGHTEEN-TWO THOUSAND NINETEEN school [year and thereafter]  YEARS,
the parcel's affiliated income may be no greater than five hundred thou-
sand  dollars,  as  determined  by  the  commissioner  [of  taxation and
finance] pursuant to SUBDIVISION FOURTEEN OF THIS SECTION OR section one
hundred seventy-one-u of the tax law, in order to be  eligible  for  the
basic exemption authorized by this section. BEGINNING WITH THE TWO THOU-
SAND  NINETEEN-TWO  THOUSAND  TWENTY  SCHOOL  YEAR,  FOR PURPOSES OF THE

S. 1509                            84                            A. 2009

EXEMPTION AUTHORIZED BY THIS SECTION, THE PARCEL'S AFFILIATED INCOME MAY
BE NO GREATER THAN TWO HUNDRED FIFTY THOUSAND DOLLARS, AS SO DETERMINED.
As used herein, the term "affiliated income"  shall  mean  the  combined
income  of all of the owners of the parcel who resided primarily thereon
on the applicable taxable status date, and of any owners' spouses resid-
ing primarily thereon. For exemptions on final assessment  rolls  to  be
used  for  the  levy  of  taxes for the two thousand eleven-two thousand
twelve school year, affiliated income shall be determined based upon the
parties' incomes for the income tax year ending in two thousand nine. In
each subsequent school year, the applicable income  tax  year  shall  be
advanced  by  one  year. The term "income" as used herein shall have the
same meaning as in subdivision four of this section.
  § 2. Subparagraph (A) of paragraph 3 of subsection  (eee)  of  section
606 of the tax law, as added by section 8 of part A of chapter 73 of the
laws of 2016, is amended to read as follows:
  (A)  Beginning  with taxable years after two thousand fifteen, a basic
STAR credit shall be available to a qualified taxpayer if the affiliated
income of the parcel that serves as the taxpayer's primary residence  is
less  than  or  equal to five hundred thousand dollars. THE INCOME LIMIT
ESTABLISHED FOR THE BASIC STAR EXEMPTION BY PARAGRAPH (B-1) OF  SUBDIVI-
SION  THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX
LAW SHALL NOT BE TAKEN INTO ACCOUNT WHEN DETERMINING ELIGIBILITY FOR THE
BASIC STAR CREDIT.
  § 3. This act shall take effect immediately.

                                 PART SS

  Section 1. Subdivision 6 of section 1306-a of the  real  property  tax
law,  as  amended  by  section 3 of part TT of chapter 59 of the laws of
2017, is amended to read as follows:
  6. When the commissioner determines, at least twenty days prior to the
levy of school district taxes, that an advance credit  of  the  personal
income  tax credit authorized by subsection (eee) of section six hundred
six of the tax law will be provided to the owners of a  parcel  in  that
school  district,  he  or  she  shall so notify the assessor, the county
director of real property tax  services,  and  the  authorities  of  the
school  district,  who  shall  cause a statement to be placed on the tax
bill for the parcel in substantially the following form:  "An  estimated
STAR  check HAS BEEN OR will be mailed to you [upon issuance] by the NYS
Tax Department. Any overpayment or underpayment  can  be  reconciled  on
your next tax return or STAR credit check."
  Notwithstanding  any  provision  of  law to the contrary, in the event
that the parcel in question had been granted a  STAR  exemption  on  the
assessment  roll upon which school district taxes are to be levied, such
exemption shall be deemed null and  void,  shall  be  removed  from  the
assessment  roll, and shall be disregarded when the parcel's tax liabil-
ity is determined. The assessor or other  local  official  or  officials
having  custody  and  control  of  the data file used to generate school
district tax rolls and tax bills shall be  authorized  and  directed  to
change  such file as necessary to enable the school district authorities
to discharge the duties imposed upon them by this subdivision.
  § 2. This act shall take effect immediately.

                                 PART TT

S. 1509                            85                            A. 2009

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

S. 1509                            86                            A. 2009

  § 4. Paragraph 5 of subsection (eee) of section 606 of the tax law, as
amended  by  section  8  of part A of chapter 73 of the laws of 2016, is
amended to read as follows:
  (5)  Disqualification.  A  taxpayer  shall  not qualify for the credit
authorized by this subsection if the parcel that serves as  the  taxpay-
er's  primary  residence  received  the STAR exemption on the assessment
roll upon which school district taxes for  the  associated  fiscal  year
[where]  WERE  levied.  Provided,  however, that the taxpayer may remove
this disqualification  by  renouncing  the  exemption  [and  making  any
required  payments]  by  December  thirty-first  of the taxable year, as
provided by subdivision sixteen of section four hundred  twenty-five  of
the  real  property tax law, AND MAKING ANY REQUIRED PAYMENTS WITHIN THE
TIME FRAME PRESCRIBED BY SECTION FOUR HUNDRED  NINETY-SIX  OF  THE  REAL
PROPERTY TAX LAW.
  § 5. This act shall take effect immediately.

                                 PART UU

  Section  1.  The  article heading of article 13-F of the public health
law, as amended by chapter 448 of the laws of 2012, is amended  to  read
as follows:
                     REGULATION OF TOBACCO PRODUCTS,
                 VAPOR PRODUCTS, ELECTRONIC CIGARETTES,
                      HERBAL CIGARETTES AND SMOKING
        PARAPHERNALIA; DISTRIBUTION TO [MINORS] PERSONS UNDER THE
                            AGE OF TWENTY-ONE
  § 2. Subdivisions 1 and 4 of section 1399-aa of the public health law,
subdivision 1 as amended by chapter 13 of the laws of 2003, and subdivi-
sion  4 as added by chapter 799 of the laws of 1992, are amended and six
new subdivisions 14, 15, 16, 17, 18 and 19 are added to read as follows:
  1. "Enforcement officer"  means  the  enforcement  officer  designated
pursuant  to  article thirteen-E of this chapter to enforce such article
and hold hearings pursuant thereto; provided that in a city with a popu-
lation of more than one million it shall also mean an officer or employ-
ee or any agency of such city that is authorized to  enforce  any  local
law  of  such  city  related  to  the  regulation of the sale of tobacco
products to [minors] PERSONS UNDER THE AGE OF TWENTY-ONE.
  4. "Private club" means an organization with no more than an insignif-
icant portion of its membership comprised of people  under  the  age  of
[eighteen] TWENTY-ONE years that regularly receives dues and/or payments
from its members for the use of space, facilities and services.
  14.  "PRICE  REDUCTION  INSTRUMENT" MEANS ANY COUPON, VOUCHER, REBATE,
CARD, PAPER, NOTE, FORM,  STATEMENT,  TICKET,  IMAGE,  OR  OTHER  ISSUE,
WHETHER  IN  PAPER,  DIGITAL,  OR  ANY  OTHER  FORM, USED FOR COMMERCIAL
PURPOSES TO RECEIVE AN ARTICLE, PRODUCT, SERVICE, OR ACCOMMODATION WITH-
OUT CHARGE OR AT A DISCOUNTED PRICE.
  15. "DEALER" MEANS A DEALER, AS DEFINED IN SECTION FOUR HUNDRED SEVEN-
TY OF THE TAX LAW OR A VAPOR PRODUCTS DEALER AS DEFINED IN SECTION ELEV-
EN HUNDRED EIGHTY OF THE TAX LAW.
  16. "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS
OF THE PRESENCE  OF  NICOTINE  THEREIN,  THAT  IS  MANUFACTURED  INTO  A
FINISHED  PRODUCT  FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR,
ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN  OR  OTHER
SIMILAR  DEVICE.  "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED
BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG  OR  MEDICAL

S. 1509                            87                            A. 2009

DEVICE,  OR MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF ARTI-
CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
  17.  "TOBACCO  AND  VAPOR PRODUCTS MENU" MEANS A BOOKLET, PAMPHLET, OR
OTHER LISTING OF TOBACCO PRODUCTS, HERBAL  CIGARETTES,  VAPOR  PRODUCTS,
AND  ELECTRONIC  CIGARETTES OFFERED FOR SALE BY THE DEALER AND THE PRICE
OF SUCH PRODUCTS. THE  TOBACCO  AND  VAPOR  PRODUCTS  MENU  MAY  CONTAIN
PICTURES  OF AND ADVERTISEMENTS FOR TOBACCO PRODUCTS, HERBAL CIGARETTES,
VAPOR PRODUCTS AND ELECTRONIC CIGARETTES.
  18. "MENU COVER PAGE" MEANS THE FRONT COVER OF  A  TOBACCO  AND  VAPOR
PRODUCTS MENU OR, IF THERE IS NO FRONT COVER, THE FIRST PAGE OF A TOBAC-
CO AND VAPOR PRODUCTS MENU.
  19.  "CHARACTERIZING  FLAVOR"  MEANS A DISTINGUISHABLE TASTE OR AROMA,
OTHER THAN THE TASTE OR AROMA OF TOBACCO  OR  MENTHOL,  IMPARTED  EITHER
PRIOR  TO  OR  DURING CONSUMPTION OF A TOBACCO PRODUCT, ELECTRONIC CIGA-
RETTES AND VAPOR PRODUCTS  OR  COMPONENT  THEREOF,  INCLUDING,  BUT  NOT
LIMITED  TO, TASTES OR AROMAS RELATING TO ANY FRUIT, CHOCOLATE, VANILLA,
HONEY, CANDY, COCOA, DESSERT, ALCOHOLIC BEVERAGE, HERB OR SPICE.
  § 3. Section 1399-bb of the public health law, as amended  by  chapter
508 of the laws of 2000, the section heading and subdivisions 4 and 5 as
amended by chapter 4 of the laws of 2018 and subdivision 2 as amended by
chapter 13 of the laws of 2003, is amended to read as follows:
  § 1399-bb. Distribution of tobacco products, VAPOR PRODUCTS, electron-
ic  cigarettes or herbal cigarettes without charge. 1. No person engaged
in the business of selling or otherwise distributing  tobacco  products,
VAPOR  PRODUCTS,  ELECTRONIC CIGARETTES or herbal cigarettes for commer-
cial purposes, or any agent or employee of such person, shall knowingly,
in furtherance of such business:
  (a) distribute without charge any tobacco  products  or  herbal  ciga-
rettes  to  any  individual, provided that the distribution of a package
containing tobacco products or herbal cigarettes in  violation  of  this
subdivision  shall  constitute  a single violation without regard to the
number of items in the package; or
  (b) distribute [coupons] PRICE REDUCTION INSTRUMENTS which are redeem-
able for tobacco products [or], herbal cigarettes,  VAPOR  PRODUCTS,  OR
ELECTRONIC  CIGARETTES to any individual, provided that this subdivision
shall not apply to coupons contained in newspapers, magazines  or  other
types  of publications, coupons obtained through the purchase of tobacco
products [or], herbal cigarettes, VAPOR PRODUCTS,  OR  ELECTRONIC  CIGA-
RETTES or obtained at locations which sell tobacco products [or], herbal
cigarettes,  VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES provided that such
distribution is confined to a designated area or to coupons sent through
the mail.
  1-A. NO PERSON  ENGAGED  IN  THE  BUSINESS  OF  SELLING  OR  OTHERWISE
DISTRIBUTING  TOBACCO  PRODUCTS,  HERBAL  CIGARETTES, VAPOR PRODUCTS, OR
ELECTRONIC CIGARETTES FOR COMMERCIAL PURPOSES, OR ANY AGENT OR  EMPLOYEE
OF SUCH PERSON, SHALL KNOWINGLY, IN FURTHERANCE OF SUCH BUSINESS:
  (A)  HONOR  OR  ACCEPT A PRICE REDUCTION INSTRUMENT IN ANY TRANSACTION
RELATED TO THE  SALE  OF  TOBACCO  PRODUCTS,  HERBAL  CIGARETTES,  VAPOR
PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUMER;
  (B)  SELL OR OFFER FOR SALE TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR
PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUMER THROUGH ANY MULTI-PACK-
AGE DISCOUNT OR OTHERWISE PROVIDE TO A CONSUMER  ANY  TOBACCO  PRODUCTS,
HERBAL  CIGARETTES,  VAPOR PRODUCTS, ELECTRONIC CIGARETTES FOR LESS THAN
THE LISTED PRICE IN EXCHANGE FOR  THE  PURCHASE  OF  ANY  OTHER  TOBACCO
PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES BY
THE CONSUMER;

S. 1509                            88                            A. 2009

  (C)  SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE ANY PRODUCT OTHER THAN
TOBACCO PRODUCTS, HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGA-
RETTES TO A CONSUMER FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR  THE
PURCHASE  OF  TOBACCO  PRODUCTS,  HERBAL  CIGARETTES, VAPOR PRODUCTS, OR
ELECTRONIC CIGARETTES BY THE CONSUMER; OR
  (D)  SELL,  OFFER  FOR  SALE,  OR  OTHERWISE PROVIDE TOBACCO PRODUCTS,
HERBAL CIGARETTES, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES TO A CONSUM-
ER FOR LESS THAN THE LISTED PRICE.
  2. The prohibitions contained in subdivision one of this section shall
not apply to the following locations:
  (a) private social functions when seating arrangements are  under  the
control  of  the  sponsor  of  the function and not the owner, operator,
manager or person in charge of such indoor area;
  (b) conventions and trade shows; provided  that  the  distribution  is
confined  to  designated areas generally accessible only to persons over
the age of [eighteen] TWENTY-ONE;
  (c)  events  sponsored  by  tobacco  [or],  herbal  cigarette,   VAPOR
PRODUCTS,  OR  ELECTRONIC  CIGARETTE  manufacturers  provided  that  the
distribution is confined to designated areas generally  accessible  only
to persons over the age of [eighteen] TWENTY-ONE;
  (d)  bars  as  defined  in subdivision one of section thirteen hundred
ninety-nine-n of this chapter;
  (e) tobacco businesses as defined  in  subdivision  eight  of  section
thirteen hundred ninety-nine-aa of this article;
  (f)  factories  as  defined  in  subdivision  nine of section thirteen
hundred ninety-nine-aa of this article and construction sites;  provided
that the distribution is confined to designated areas generally accessi-
ble only to persons over the age of [eighteen] TWENTY-ONE.
  3.   No   person   shall  distribute  tobacco  products  [or],  herbal
cigarettes, VAPOR PRODUCTS, OR ELECTRONIC CIGARETTES  at  the  locations
set  forth  in  paragraphs  (b),  (c) and (f) of subdivision two of this
section unless such  person  gives  five  days  written  notice  to  the
enforcement officer.
  4.  No person engaged in the business of selling or otherwise distrib-
uting VAPOR PRODUCTS OR electronic cigarettes for  commercial  purposes,
or any agent or employee of such person, shall knowingly, in furtherance
of  such business, distribute without charge any VAPOR PRODUCTS OR elec-
tronic cigarettes to any individual under [eighteen] TWENTY-ONE years of
age.
  5. The distribution of tobacco products or herbal cigarettes  pursuant
to subdivision two of this section or the distribution without charge of
VAPOR  PRODUCTS  OR electronic cigarettes shall be made only to an indi-
vidual who demonstrates, through (A) a driver's license or [other photo-
graphic] NON-DRIVER'S identification card issued by [a government entity
or educational institution] THE  COMMISSIONER  OF  MOTOR  VEHICLES,  THE
FEDERAL   GOVERNMENT,  ANY  UNITED  STATES  TERRITORY,  COMMONWEALTH  OR
POSSESSION, THE DISTRICT OF COLUMBIA,  A  STATE  GOVERNMENT  WITHIN  THE
UNITED  STATES  OR A PROVINCIAL GOVERNMENT OF THE DOMINION OF CANADA, OR
(B) A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR ANY OTHER
COUNTRY, OR (C) AN IDENTIFICATION CARD ISSUED BY THE ARMED FORCES OF THE
UNITED STATES, indicating that the individual  is  at  least  [eighteen]
TWENTY-ONE years of age. Such identification need not be required of any
individual  who  reasonably  appears to be at least [twenty-five] THIRTY
years of age; provided, however, that such appearance shall not  consti-
tute a defense in any proceeding alleging the sale of a tobacco product,
VAPOR  PRODUCT, electronic cigarette or herbal cigarette or the distrib-

S. 1509                            89                            A. 2009

ution without charge of VAPOR PRODUCTS OR electronic  cigarettes  to  an
individual UNDER TWENTY-ONE YEARS OF AGE.
  §  4.  The  opening  paragraph of section 1399-cc of the public health
law, as amended by chapter 542 of the laws of 2014, is amended  to  read
as follows:
  Sale  of  tobacco products, herbal cigarettes, [liquid nicotine] VAPOR
PRODUCTS, ELECTRONIC  CIGARETTES,  shisha,  rolling  papers  or  smoking
paraphernalia to [minors] PERSONS UNDER THE AGE OF TWENTY-ONE IS prohib-
ited.
  §  5.  Paragraph (e) of subdivision 1 of section 1399-cc of the public
health law is REPEALED.
  § 6. Subdivisions 2, 3, 4 and 7  of  section  1399-cc  of  the  public
health  law,  as amended by chapter 542 of the laws of 2014, are amended
to read as follows:
  2. Any person operating a place of business wherein tobacco  products,
herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electron-
ic  cigarettes,  are sold or offered for sale is prohibited from selling
such products, herbal  cigarettes,  [liquid  nicotine]  VAPOR  PRODUCTS,
shisha,  electronic  cigarettes  or smoking paraphernalia to individuals
under [eighteen] TWENTY-ONE years of age, and shall post in a  conspicu-
ous  place  a  sign  upon  which  there shall be imprinted the following
statement, "SALE OF CIGARETTES, CIGARS, CHEWING TOBACCO, POWDERED TOBAC-
CO, SHISHA OR OTHER TOBACCO PRODUCTS, HERBAL CIGARETTES,  [LIQUID  NICO-
TINE]  VAPOR  PRODUCTS, ELECTRONIC CIGARETTES, ROLLING PAPERS OR SMOKING
PARAPHERNALIA, TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS  OF  AGE  IS
PROHIBITED  BY  LAW."  Such sign shall be printed on a white card in red
letters at least one-half inch in height.
  3. Sale of tobacco  products,  herbal  cigarettes,  [liquid  nicotine]
VAPOR  PRODUCTS,  shisha  or electronic cigarettes in such places, other
than by a vending machine, shall be  made  only  to  an  individual  who
demonstrates, through (a) a valid driver's license or non-driver's iden-
tification card issued by the commissioner of motor vehicles, the feder-
al  government, any United States territory, commonwealth or possession,
the District of Columbia, a state government within the United States or
a provincial government of the dominion of Canada, or (b) a valid  pass-
port issued by the United States government or any other country, or (c)
an  identification card issued by the armed forces of the United States,
indicating that the individual is at least [eighteen]  TWENTY-ONE  years
of  age.  Such identification need not be required of any individual who
reasonably appears to be at least [twenty-five]  THIRTY  years  of  age,
provided,  however,  that such appearance shall not constitute a defense
in any proceeding alleging the sale of a tobacco product,  herbal  ciga-
rettes,  [liquid  nicotine]  VAPOR  PRODUCTS, shisha or electronic ciga-
rettes to an individual under [eighteen] TWENTY-ONE years of age.
  4. (a) Any person  operating  a  place  of  business  wherein  tobacco
products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or
electronic  cigarettes are sold or offered for sale may perform a trans-
action scan as a precondition for such purchases.
  (b) In any instance where the information  deciphered  by  the  trans-
action  scan  fails  to  match  the  information printed on the driver's
license or non-driver identification card, or if  the  transaction  scan
indicates  that  the  information  is false or fraudulent, the attempted
transaction shall be denied.
  (c) In any proceeding pursuant to  section  thirteen  hundred  ninety-
nine-ee  of  this  article, it shall be an affirmative defense that such
person had produced a driver's license or non-driver identification card

S. 1509                            90                            A. 2009

apparently issued by a governmental entity, successfully completed  that
transaction  scan,  and  that  the tobacco product, herbal cigarettes or
[liquid nicotine] VAPOR PRODUCTS had been sold, delivered  or  given  to
such  person  in reasonable reliance upon such identification and trans-
action scan. In evaluating the applicability of such affirmative defense
the commissioner  shall  take  into  consideration  any  written  policy
adopted  and  implemented  by the seller to effectuate the provisions of
this chapter. Use of a transaction scan  shall  not  excuse  any  person
operating  a  place  of  business wherein tobacco products, herbal ciga-
rettes, [liquid nicotine] VAPOR PRODUCTS,  shisha  or  electronic  ciga-
rettes are sold, or the agent or employee of such person, from the exer-
cise  of  reasonable  diligence  otherwise  required  by  this  chapter.
Notwithstanding the above provisions, any such affirmative defense shall
not be applicable in any civil or criminal proceeding, or in  any  other
forum.
  7.  (A)  No  person  operating  a  place  of  business wherein tobacco
products, herbal cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or
electronic cigarettes are sold or offered for sale shall sell, permit to
be sold, offer for sale or display for sale any tobacco product,  herbal
cigarettes, [liquid nicotine] VAPOR PRODUCTS, shisha or electronic ciga-
rettes in any manner, unless such products and cigarettes are stored for
sale  [(a)]  (I)  behind  a  counter  in  an area accessible only to the
personnel of such  business,  or  [(b)]  (II)  in  a  locked  container;
provided,  however,  such  restriction  shall not apply to tobacco busi-
nesses, as defined in subdivision  eight  of  section  thirteen  hundred
ninety-nine-aa  of  this  article,  and  to places to which admission is
restricted to persons [eighteen] TWENTY-ONE years of age or older.
  (B) IN ADDITION TO THE REQUIREMENTS SET FORTH IN PARAGRAPH (A) OF THIS
SUBDIVISION, NO DEALER SHALL PERMIT THE DISPLAY OF ANY TOBACCO  PRODUCT,
HERBAL  CIGARETTE,  VAPOR  PRODUCT,  OR ELECTRONIC CIGARETTE IN A MANNER
THAT PERMITS A CONSUMER TO VIEW ANY SUCH ITEM PRIOR TO PURCHASE.  EXCEPT
AS PROVIDED FOR IN PARAGRAPH (C) OF THIS SUBDIVISION IS NOT VIOLATED IF:
  (I)  AT  THE DIRECT REQUEST OF A CUSTOMER AT LEAST TWENTY-ONE YEARS OF
AGE, SUCH A CUSTOMER HANDLES THE ITEM, PACKAGED OR OTHERWISE, TO INSPECT
THE PRODUCT PRIOR TO PURCHASE; OR
  (II) SUCH ITEMS ARE TEMPORARILY VISIBLE DURING RESTOCKING, THE SALE OF
SUCH ITEMS, OR THE CARRIAGE OF SUCH ITEMS INTO OR OUT OF THE PREMISES.
  (C) NO DEALER SHALL DISPLAY OR PERMIT THE DISPLAY OF ANY TOBACCO PROD-
UCT, HERBAL CIGARETTE, VAPOR PRODUCT, OR ELECTRONIC  CIGARETTE  FOR  ANY
LONGER  THAN  NECESSARY  TO COMPLETE THE PURPOSES IDENTIFIED IN SUBPARA-
GRAPHS (I) AND (II) OF PARAGRAPH (B) OF THIS SUBDIVISION.
  (D) NO DEALER SHALL STORE ANY TOBACCO AND VAPOR  PRODUCTS  MENU  IN  A
LOCATION  WHERE  IT  IS  VISIBLE TO CUSTOMERS OR ACCESSIBLE TO CUSTOMERS
WITHOUT THE ASSISTANCE OF THE DEALER. THE MENU SHALL ALSO  CONTAIN  MENU
COVER  PAGE THAT SHALL PREVENT THE INADVERTENT VIEWING OF PROMOTIONAL OR
OTHER MATERIAL CONTAINED WITHIN THE TOBACCO AND VAPOR PRODUCTS MENU.
  (E) NO DEALER SHALL PROVIDE ANY TOBACCO AND VAPOR PRODUCTS MENU OR ANY
TOBACCO PRODUCT, HERBAL CIGARETTE, VAPOR PRODUCT,  OR  ELECTRONIC  CIGA-
RETTE TO ANY INDIVIDUAL WHO HAS NOT DEMONSTRATED, THROUGH IDENTIFICATION
WHICH  MEETS THE REQUIREMENTS OF SUBDIVISION THREE OF THIS SECTION, THAT
THE INDIVIDUAL IS AT LEAST TWENTY-ONE YEARS OF AGE.  SUCH IDENTIFICATION
NEED NOT BE REQUIRED OF ANY INDIVIDUAL WHO REASONABLY APPEARS TO BE OVER
THE AGE OF THIRTY, PROVIDED, HOWEVER, THAT  SUCH  APPEARANCE  SHALL  NOT
CONSTITUTE A DEFENSE IN ANY PROCEEDING ALLEGING THE SALE OF SUCH ITEM TO
AN  INDIVIDUAL UNDER TWENTY-ONE YEARS OF AGE. IT SHALL BE AN AFFIRMATIVE
DEFENSE TO A VIOLATION OF THIS PARAGRAPH THAT  THE  DEALER  SUCCESSFULLY

S. 1509                            91                            A. 2009

PERFORMED  A TRANSACTION SCAN OF AN INDIVIDUAL'S IDENTIFICATION AND THAT
A TOBACCO AND VAPOR PRODUCTS MENU, TOBACCO  PRODUCT,  HERBAL  CIGARETTE,
VAPOR  PRODUCT,  OR ELECTRONIC CIGARETTE WAS PROVIDED TO SUCH INDIVIDUAL
IN REASONABLE RELIANCE UPON SUCH IDENTIFICATION AND TRANSACTION SCAN.
  (F)  AFTER  A  CUSTOMER  HAS  COMPLETED  VIEWING  A  TOBACCO AND VAPOR
PRODUCTS MENU, THE DEALER SHALL IMMEDIATELY RETURN THE TOBACCO AND VAPOR
PRODUCTS MENU TO ITS STORAGE LOCATION.
  (G) UNLESS REQUIRED OTHERWISE BY REGULATION  OF  THE  DEPARTMENT,  THE
MENU COVER PAGE OF THE TOBACCO AND VAPOR PRODUCTS MENU SHALL BE BLANK OR
CONTAIN  ONLY  THE WORDS "TOBACCO AND VAPOR PRODUCTS MENU" AND SHALL NOT
CONTAIN ANY ADVERTISING OR OTHER PROMOTIONAL MATERIAL.
  (H) THE COMMISSIONER MAY ISSUE RULES AND REGULATIONS GOVERNING THE USE
OF THE TOBACCO AND VAPOR PRODUCTS MENU AND MENU COVER PAGE.
  (I) PARAGRAPHS (A) THROUGH (G) OF THIS SUBDIVISION SHALL NOT APPLY  TO
A  PLACE  OF BUSINESS TO WHICH ADMISSION IS RESTRICTED SOLELY TO PERSONS
TWENTY-ONE YEARS OF AGE OR OLDER.
  (J) NOTHING HEREIN SHALL BE CONSTRUED TO RESTRICT THE AUTHORITY OF ANY
COUNTY, CITY, TOWN, OR VILLAGE TO ENACT, ADOPT, PROMULGATE  AND  ENFORCE
ADDITIONAL  LOCAL  LAWS, ORDINANCES, REGULATIONS OR OTHER MEASURES WHICH
ARE IN ADDITION TO OR MORE STRINGENT THAN EITHER OF  THE  PROVISIONS  OF
THIS ARTICLE.
  §  7.  Section 1399-dd of the public health law, as amended by chapter
448 of the laws of 2012, is amended to read as follows:
  §  1399-dd.  Sale  of  tobacco  products,  herbal  cigarettes,   VAPOR
PRODUCTS, or electronic cigarettes in vending machines. No person, firm,
partnership,  company  or  corporation  shall  operate a vending machine
which dispenses tobacco products, herbal cigarettes, VAPOR PRODUCTS,  or
electronic  cigarettes  unless  such machine is located: (a) in a bar as
defined in subdivision one of section thirteen hundred ninety-nine-n  of
this  chapter,  or  the  bar area of a food service establishment with a
valid, on-premises full liquor license; (b) in a private club; (c) in  a
tobacco  business  as  defined  in subdivision eight of section thirteen
hundred ninety-nine-aa of this article; or (d) in a place of  employment
which has an insignificant portion of its regular workforce comprised of
people  under  the  age  of [eighteen] TWENTY-ONE years and only in such
locations that are not  accessible  to  the  general  public;  provided,
however,  that in such locations the vending machine is located in plain
view and under the direct supervision  and  control  of  the  person  in
charge of the location or his or her designated agent or employee.
  §  8.  Section 1399-ee of the public health law, as amended by chapter
162 of the laws of 2002, is amended to read as follows:
  § 1399-ee. Hearings; penalties. 1. Hearings with respect to  violation
of  this  article  shall  be  conducted  in  the same manner as hearings
conducted under article thirteen-E of this chapter.
  2. If the enforcement  officer  determines  after  a  hearing  that  a
violation  of  this article has occurred, he or she shall impose a civil
penalty of a minimum of three hundred dollars, but  not  to  exceed  one
thousand  dollars  for  a first violation, and a minimum of five hundred
dollars, but not to exceed one thousand five hundred  dollars  for  each
subsequent  violation,  unless a different penalty is otherwise provided
in this article. The enforcement officer shall advise the [retail] deal-
er that upon the accumulation of three or more points pursuant  to  this
section  the  [department]  COMMISSIONER  of  taxation and finance shall
suspend the dealer's registration. If the enforcement officer determines
after a hearing that a [retail] dealer  was  selling  tobacco  products,
VAPOR  PRODUCTS,  OR  ELECTRONIC CIGARETTES while their registration was

S. 1509                            92                            A. 2009

suspended or permanently revoked pursuant to subdivision three  or  four
of  this  section, he or she shall impose a civil penalty of twenty-five
hundred dollars.
  3.  (a)  Imposition  of points. If the enforcement officer determines,
after a hearing, that the [retail] dealer violated subdivision [one] TWO
of section thirteen hundred ninety-nine-cc of this article with  respect
to a prohibited sale to a [minor] PERSON UNDER THE AGE OF TWENTY-ONE, he
or  she  shall,  in  addition  to imposing any other penalty required or
permitted pursuant to this section, assign two points  to  the  [retail]
dealer's record where the individual who committed the violation did not
hold  a  certificate  of completion from a state certified tobacco sales
training program and one point where the  [retail]  dealer  demonstrates
that  the  person  who  committed  the  violation  held a certificate of
completion from a state certified tobacco sales training program.
  (b) Revocation. If the enforcement officer determines, after  a  hear-
ing,  that a [retail] dealer has violated this article four times within
a three year time frame he or she shall, in  addition  to  imposing  any
other  penalty required or permitted by this section, direct the commis-
sioner of taxation and finance to revoke the dealer's  registration  for
one year.
  (c)  Duration of points. Points assigned to a [retail] dealer's record
shall be assessed for a period of thirty-six  months  beginning  on  the
first day of the month following the assignment of points.
  (d)  Reinspection. Any [retail] dealer who is assigned points pursuant
to paragraph (a) of this subdivision shall be reinspected at  least  two
times  a  year  by  the  enforcement  officer  until points assessed are
removed from the [retail] dealer's record.
  (e) Suspension. If the department determines that  a  [retail]  dealer
has  accumulated  three  points or more, the department shall direct the
commissioner of taxation and finance to suspend such dealer's  registra-
tion for six months. The three points serving as the basis for a suspen-
sion shall be erased upon the completion of the six month penalty.
  (f)  Surcharge.  A  fifty  dollar  surcharge  to be assessed for every
violation will be made available to enforcement officers  and  shall  be
used  solely  for compliance checks to be conducted to determine compli-
ance with this section.
  4. (a) If the enforcement officer determines, after a hearing, that  a
[retail]  dealer  has violated this article while their registration was
suspended pursuant to subdivision three  of  this  section,  he  or  she
shall,  in  addition to imposing any other penalty required or permitted
by this section, direct the commissioner  of  taxation  and  finance  to
permanently  revoke  the dealer's registration and not permit the dealer
to obtain a new registration.
  (b) If the enforcement officer determines, after  a  hearing,  that  a
vending  machine operator has violated this article three times within a
two year period, or four or more times cumulatively he or she shall,  in
addition  to  imposing  any  other penalty required or permitted by this
section, direct the commissioner of taxation and finance to suspend  the
vendor's registration for one year and not permit the vendor to obtain a
new registration for such period.
  5. The department shall publish a notification of the name and address
of  any  [retailer]  DEALER violating the provisions of this section and
indicate the number of times the dealer has violated the  provisions  of
this  section.  The  notification  shall  be published in a newspaper of
general circulation in the locality in which the  [retailer]  DEALER  is
located.

S. 1509                            93                            A. 2009

  6. (a) In any proceeding pursuant to subdivision three of this section
to  assign  points  to  a  [retail] dealer's record, the [retail] dealer
shall be assigned one point instead of two  points  where  the  [retail]
dealer  demonstrates  that  the  person  who  committed the violation of
section  thirteen  hundred  ninety-nine-cc  of this article held a valid
certificate of completion from a state certified tobacco sales  training
program.
  (b)  A  state  certified  tobacco sales training program shall include
instruction in the following elements:
  (1) the health effects of tobacco use, especially at a young age;
  (2) the legal purchase age and the additional requirements of  section
thirteen hundred ninety-nine-cc of this article;
  (3) legal forms of identification and the key features thereof;
  (4)  reliance  upon  legal  forms  of  identification and the right to
refuse sales when acting in good faith;
  (5) means of identifying fraudulent identification of attempted under-
age purchasers;
  (6) techniques used to refuse a sale;
  (7) the penalties arising out of unlawful sales to  underage  individ-
uals; and
  (8) the significant disciplinary action or loss of employment that may
be  imposed by the [retail] dealer for a violation of the law or a devi-
ation from the policies of the [retail] dealer in respect to  compliance
with such law.
  (c)  A tobacco sales training program may be given and administered by
a [retail] dealer duly registered under section four hundred eighty-a of
the tax law which operates five or more registered locations, by a trade
association  whose  members  are  registered  as  [retail]  dealers,  by
national  and  regional franchisors who have granted at least five fran-
chises in the state to persons who are registered as such [retail] deal-
ers by a cooperative corporation with  five  or  more  members  who  are
registered as [retail] dealers and are operating in this state, and by a
wholesaler  supplying fifty or more [retail] dealers. A person or entity
administering  such  training  program  shall  issue   certificates   of
completion  to  persons successfully completing such a training program.
Such certificates shall be prima facie evidence  of  the  completion  of
such a training program by the person named therein.
  (d)  A  certificate  of completion may be issued for a period of three
years, however such certificate shall be  invalidated  by  a  change  in
employment.
  (e)  Entities authorized pursuant to paragraph (c) of this subdivision
to give and administer a tobacco sales training  program  may  submit  a
proposed curriculum, a facsimile of any training aids and materials, and
a list of training locations to the department for review. Training aids
may  include the use of video, computer based instruction, printed mate-
rials and other formats deemed acceptable to the department. The depart-
ment shall certify programs which provide instruction  in  the  elements
set forth in paragraph (b) of this subdivision in a clear and meaningful
fashion.  Programs  approved  by the department shall be certified for a
period of three years at which time an entity may  reapply  for  certif-
ication.  A  non-refundable  fee  in the amount of three hundred dollars
shall be paid to the department with each application.
  § 9. Section 1399-hh of the public health law, as added by chapter 433
of the laws of 1997, is amended to read as follows:
  § 1399-hh. Tobacco VAPOR PRODUCT AND ELECTRONIC CIGARETTE enforcement.
The commissioner shall  develop,  plan  and  implement  a  comprehensive

S. 1509                            94                            A. 2009

program to reduce the prevalence of tobacco VAPOR PRODUCT AND ELECTRONIC
CIGARETTE  use,  particularly among persons less than [eighteen] TWENTY-
ONE years of age. This program shall include, but  not  be  limited  to,
support for enforcement of article thirteen-F of this chapter.
  1.  An  enforcement  officer,  as  defined in section thirteen hundred
ninety-nine-t of this chapter, may annually, on such dates as  shall  be
fixed  by the commissioner, submit an application for such monies as are
made available for such purpose.  Such application shall be in such form
as prescribed by the commissioner and shall include, but not be  limited
to,  plans  regarding random spot checks, including the number and types
of compliance checks that will be conducted,  and  other  activities  to
determine compliance with this article.  Each such plan shall include an
agreement  to  report  to  the  commissioner: the names and addresses of
[tobacco retailers and vendors] DEALERS determined to be unlicensed,  if
any;  the  number  of  complaints filed against licensed [tobacco retail
outlets] DEALERS; and the names of [tobacco retailers and vendors] DEAL-
ERS who have paid fines,  or  have  been  otherwise  penalized,  due  to
enforcement actions.
  2.    The commissioner shall distribute such monies as are made avail-
able for such purpose to enforcement officers and, in so doing, consider
the number of retail locations registered to sell tobacco products with-
in the jurisdiction of the enforcement officer and the level of proposed
activities.
  3. Monies made available to  enforcement  officers  pursuant  to  this
section  shall  only  be used for local tobacco, HERBAL CIGARETTE, VAPOR
PRODUCTS AND ELECTRONIC CIGARETTE enforcement activities approved by the
commissioner.
  § 10. Paragraph (b) of subdivision 2 of section 1399-ll of the  public
health  law,  as added by chapter 518 of the laws of 2000, is amended to
read as follows:
  (b) Any person operating a tobacco business wherein bidis is  sold  or
offered  for  sale  is prohibited from selling such bidis to individuals
under [eighteen] TWENTY-ONE years of age, and shall post in a  conspicu-
ous  place  a  sign  upon  which  there shall be imprinted the following
statement, "SALE OF BIDIS TO PERSONS UNDER [EIGHTEEN]  TWENTY-ONE  YEARS
OF  AGE  IS  PROHIBITED BY LAW."   Such sign shall be printed on a white
card in red letters at least one-half inch in height.
  § 11. Subdivision 1 and paragraph (b)  of  subdivision  2  of  section
1399-mm of the public health law, as added by chapter 549 of the laws of
2003, are amended to read as follows:
  1. No person shall knowingly sell or provide gutka to any other person
under  [eighteen]  TWENTY-ONE  years  of  age. No other provision of law
authorizing the sale of tobacco products, other than subdivision two  of
this  section,  shall  authorize  the  sale  of  gutka.   Any person who
violates the provisions of this subdivision shall be subject to a  civil
penalty of not more than five hundred dollars.
  (b)  Any  person operating a tobacco business wherein gutka is sold or
offered for sale is prohibited from selling such  gutka  to  individuals
under  [eighteen] TWENTY-ONE years of age, and shall post in a conspicu-
ous place a sign upon which  there  shall  be  imprinted  the  following
statement,  "SALE  OF GUTKA TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS
OF AGE IS PROHIBITED BY LAW."  Such sign shall be  printed  on  a  white
card in red letters at least one-half inch in height.
  §  12.  The  public  health  law  is  amended  by adding a new section
1399-mm-1 to read as follows:

S. 1509                            95                            A. 2009

  § 1399-MM-1. SALE IN PHARMACIES. NO  TOBACCO  PRODUCTS,  HERBAL  CIGA-
RETTES,  VAPOR  PRODUCTS,  OR  ELECTRONIC  CIGARETTES SHALL BE SOLD IN A
PHARMACY OR IN A RETAIL ESTABLISHMENT THAT CONTAINS A PHARMACY  OPERATED
AS  A DEPARTMENT AS DEFINED IN PARAGRAPH F OF SUBDIVISION TWO OF SECTION
SIXTY-EIGHT HUNDRED EIGHT OF THE EDUCATION LAW.
  §  13.  The  public  health  law  is  amended  by adding a new section
1399-mm-2 to read as follows:
  § 1399-MM-2. ELECTRONIC CIGARETTE AND VAPOR  PRODUCTS;  CHARACTERIZING
FLAVORS.  THE  COMMISSIONER  IS  AUTHORIZED  TO  PROMULGATE  REGULATIONS
GOVERNING THE SALE AND DISTRIBUTION OF ELECTRONIC  CIGARETTES  OR  VAPOR
PRODUCTS.   SUCH REGULATIONS MAY, TO THE EXTENT DEEMED NECESSARY FOR THE
PROTECTION OF PUBLIC HEALTH, PROHIBIT  OR  RESTRICT:  (I)  THE  SELLING,
OFFERING  FOR SALE, POSSESSING WITH INTENT TO SELL OR OFFERING FOR SALE,
OR DISTRIBUTING OF REFILLS, CARTRIDGES, OR OTHER COMPONENTS OF ELECTRON-
IC CIGARETTES OR VAPOR PRODUCTS THAT IMPARTS A CHARACTERIZING FLAVOR; OR
(II) THE USE OF TRADEMARKS,  NAMES  OR  DESCRIPTIONS  OF  CHARACTERIZING
FLAVORS THAT ARE CLEARLY INTENDED TO APPEAL TO MINORS.
  §  14.  Paragraph  n  of subdivision 1 of section 1399-o of the public
health law, as amended by chapter 335 of the laws of 2017, is amended to
read as follows:
  n. general hospitals and residential health care facilities as defined
in article twenty-eight  of  this  chapter,  HOSPITALS  AND  RESIDENTIAL
FACILITIES LICENSED BY OR OPERATED BY THE OFFICE OF MENTAL HEALTH PURSU-
ANT TO THE MENTAL HYGIENE LAW, and other health care facilities licensed
by  the  state  in  which  persons  reside;  provided, however, that the
provisions of this subdivision shall not prohibit smoking  [and  vaping]
by patients in separate enclosed rooms of residential health care facil-
ities, adult care facilities established or certified under title two of
article seven of the social services law, [community mental health resi-
dences  established  under  section 41.44 of the mental hygiene law,] or
facilities where day treatment programs are provided, which  are  desig-
nated  as  smoking [and vaping] rooms for patients of such facilities or
programs;
  § 15. Subdivision 2 of section 1399-o of  the  public  health  law  is
amended by adding a new paragraph c to read as follows:
  C.  ON  THE GROUNDS OF HOSPITALS LICENSED BY OR OPERATED BY THE OFFICE
OF MENTAL HEALTH PURSUANT TO THE MENTAL HYGIENE LAW.
  § 16. Section 399-gg of the general business law, as added by  chapter
542 of the laws of 2014, is amended to read as follows:
  §  399-gg.  Packaging  of  [electronic  liquid]  VAPOR PRODUCTS. 1. No
person, firm or corporation shall sell or offer for sale any [electronic
liquid] VAPOR PRODUCTS, as defined in  [paragraph  (e)  of]  subdivision
[one]  SIXTEEN  of  section  [thirteen  hundred ninety-nine-cc] THIRTEEN
HUNDRED NINETY-NINE-AA of the public health law, unless the  [electronic
liquid]  VAPOR PRODUCTS is sold or offered for sale in a child resistant
bottle which is designed to prevent accidental exposure of  children  to
[electronic liquids] VAPOR PRODUCTS.
  2. Any violation of this section shall be punishable by a civil penal-
ty not to exceed one thousand dollars.
  §  17.  The tax law is amended by adding a new article 28-C to read as
follows:

                              ARTICLE 28-C
                   SUPPLEMENTAL TAX ON VAPOR PRODUCTS

SECTION 1180. DEFINITIONS.

S. 1509                            96                            A. 2009

        1181. IMPOSITION OF TAX.
        1182. IMPOSITION OF COMPENSATING USE TAX.
        1183. VAPOR PRODUCTS DEALER REGISTRATION AND RENEWAL.
        1184. ADMINISTRATIVE PROVISIONS.
        1185. CRIMINAL PENALTIES.
        1186. DEPOSIT AND DISPOSITION OF REVENUE.
  §  1180.  DEFINITIONS.  FOR  THE PURPOSES OF THE TAXES IMPOSED BY THIS
ARTICLE, THE FOLLOWING TERMS SHALL MEAN:
  (A) "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS
OF THE PRESENCE OF NICOTINE  THEREIN,  THAT  IS  MANUFACTURED  IN  TO  A
FINISHED  PRODUCT  FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR,
ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN  OR  OTHER
SIMILAR  DEVICE.  "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED
BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG  OR  MEDICAL
DEVICE,  OR MANUFACTURED AND DISPENSED PURSUANT TO TITLE FIVE-A OF ARTI-
CLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
  (B) "VAPOR PRODUCTS DEALER" MEANS A PERSON LICENSED BY THE COMMISSION-
ER TO SELL VAPOR PRODUCTS IN THIS STATE.
  § 1181. IMPOSITION OF TAX. IN ADDITION TO ANY  OTHER  TAX  IMPOSED  BY
THIS  CHAPTER  OR  OTHER  LAW,  THERE  IS HEREBY IMPOSED A TAX OF TWENTY
PERCENT ON RECEIPTS FROM THE RETAIL SALE OF VAPOR PRODUCTS SOLD IN  THIS
STATE.  THE  TAX  IMPOSED  ON  THE  PURCHASER AND COLLECTED BY THE VAPOR
PRODUCTS DEALER AS DEFINED IN SUBDIVISION (B) OF SECTION ELEVEN  HUNDRED
EIGHTY OF THIS ARTICLE, IN TRUST FOR AND ON ACCOUNT OF THE STATE.
  §  1182.  IMPOSITION OF COMPENSATING USE TAX. (A) EXCEPT TO THE EXTENT
THAT VAPOR PRODUCTS HAVE ALREADY BEEN OR WILL  BE  SUBJECT  TO  THE  TAX
IMPOSED  BY  SECTION  ELEVEN  HUNDRED EIGHTY-ONE OF THIS ARTICLE, OR ARE
OTHERWISE EXEMPT UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED A  USE  TAX
ON EVERY USE OF VAPOR PRODUCTS BY RESIDENT OF THIS STATE.
  (B)  THE  TAX  IMPOSED  BY THIS SECTION SHALL BE AT THE RATE OF TWENTY
PERCENT OF (1) THE CONSIDERATION GIVEN OR CONTRACTED  TO  BE  GIVEN  FOR
SUCH  VAPOR PRODUCT PURCHASED AT RETAIL; (2) THE PRICE AT WHICH ITEMS OF
THE SAME KIND OF VAPOR PRODUCTS ARE SOLD BY A MANUFACTURER OF SUCH VAPOR
PRODUCTS IN THE REGULAR COURSE OF HIS OR HER BUSINESS.
  (C) THE TAX DUE PURSUANT TO THIS SECTION SHALL BE PAID AND REPORTED NO
LATER THAN TWENTY DAYS AFTER SUCH  USE  ON  A  FORM  PRESCRIBED  BY  THE
COMMISSIONER.
  §  1183.  VAPOR  PRODUCTS  DEALER  REGISTRATION AND RENEWAL. (A) EVERY
PERSON WHO INTENDS TO SELL VAPOR PRODUCTS IN  THIS  STATE  MUST  RECEIVE
FROM THE COMMISSIONER A CERTIFICATE OF REGISTRATION PRIOR TO ENGAGING IN
BUSINESS.  SUCH  PERSON  MUST ELECTRONICALLY SUBMIT A PROPERLY COMPLETED
APPLICATION FOR A CERTIFICATE OF REGISTRATION FOR EACH LOCATION AT WHICH
VAPOR PRODUCTS WILL BE SOLD IN THIS STATE, ON A FORM PRESCRIBED  BY  THE
COMMISSIONER,  AND  SHALL BE ACCOMPANIED BY A NON-REFUNDABLE APPLICATION
FEE OF THREE HUNDRED DOLLARS.
   (B) A VAPOR PRODUCTS DEALER  CERTIFICATE  OF  REGISTRATION  SHALL  BE
VALID  FOR  THE  CALENDAR  YEAR  FOR  WHICH  IT IS ISSUED UNLESS EARLIER
SUSPENDED OR REVOKED. UPON THE EXPIRATION OF  THE  TERM  STATED  ON  THE
CERTIFICATE  OF REGISTRATION, SUCH CERTIFICATE SHALL BE NULL AND VOID. A
CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE  AND
SHALL BE DESTROYED IMMEDIATELY UPON THE VAPOR PRODUCTS DEALER CEASING TO
DO  BUSINESS  AS SPECIFIED IN SUCH CERTIFICATE OR IN THE EVENT THAT SUCH
BUSINESS NEVER COMMENCED.
  (C) EVERY VAPOR PRODUCT DEALER SHALL PUBLICLY DISPLAY A VAPOR PRODUCTS
DEALER CERTIFICATE OF REGISTRATION IN EACH PLACE  OF  BUSINESS  IN  THIS
STATE  WHERE  VAPOR PRODUCTS ARE SOLD AT RETAIL. A VAPOR PRODUCTS DEALER

S. 1509                            97                            A. 2009

WHO HAS NO REGULAR PLACE OF BUSINESS SHALL PUBLICLY DISPLAY  SUCH  VALID
CERTIFICATE  ON EACH OF ITS CARTS, STANDS, TRUCKS OR OTHER MERCHANDISING
DEVICES THROUGH WHICH IT SELLS VAPOR PRODUCTS.
  (D) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS-
TRATION  TO  ANY  APPLICANT  WHO DOES NOT POSSESS A VALID CERTIFICATE OF
AUTHORITY UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER.   IN
ADDITION,  THE  COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGIS-
TRATION, OR SUSPEND, CANCEL OR  REVOKE  A  CERTIFICATE  OF  REGISTRATION
ISSUED  TO  ANY PERSON WHO: (A) HAS A PAST-DUE LIABILITY AS THAT TERM IS
DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS  CHAPTER;  (B)  HAS
HAD  A  CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE OR ANY LICENSE OR
REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN ONE  YEAR  FROM
THE DATE ON WHICH SUCH APPLICATION WAS FILED; (C) HAS  BEEN CONVICTED OF
A  CRIME  PROVIDED  FOR IN THIS CHAPTER WITHIN ONE YEAR FROM THE DATE ON
WHICH SUCH APPLICATION WAS FILED; (D) WILLFULLY FAILS TO FILE  A  REPORT
OR  RETURN  REQUIRED  BY THIS ARTICLE; (E) WILLFULLY FILES, CAUSES TO BE
FILED, GIVES OR CAUSES TO BE GIVEN  A  REPORT,  RETURN,  CERTIFICATE  OR
AFFIDAVIT  REQUIRED  BY THIS ARTICLE WHICH IS FALSE; (F) WILLFULLY FAILS
TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS
ARTICLE; OR (G) WHOSE PLACE OF BUSINESS IS AT THE SAME PREMISES AS  THAT
OF  A  PERSON  WHOSE VAPOR PRODUCES DEALER REGISTRATION HAS BEEN REVOKED
AND WHERE SUCH REVOCATION IS STILL IN EFFECT, UNLESS  THE  APPLICANT  OR
VAPOR PRODUCTS DEALER PROVIDES THE COMMISSIONER WITH ADEQUATE DOCUMENTA-
TION DEMONSTRATING THAT SUCH APPLICANT OR VAPOR PRODUCTS DEALER ACQUIRED
THE  PREMISES OR BUSINESS THROUGH AN ARM'S LENGTH TRANSACTION AS DEFINED
IN PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-A  OF
THIS CHAPTER.
  (2)  IN  ADDITION  TO  THE  GROUNDS  PROVIDED IN PARAGRAPH ONE OF THIS
SUBDIVISION, THE COMMISSIONER SHALL REFUSE TO  ISSUE  A  CERTIFICATE  OF
REGISTRATION  AND  SHALL CANCEL OR SUSPEND A CERTIFICATE OF REGISTRATION
AS DIRECTED BY AN ENFORCEMENT OFFICER PURSUANT TO ARTICLE THIRTEEN-F  OF
THE  PUBLIC  HEALTH  LAW.  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE
CONTRARY, AN APPLICANT WHOSE APPLICATION FOR A CERTIFICATE OF  REGISTRA-
TION  IS  REFUSED  OR  A  VAPOR  PRODUCTS  DEALER  WHOSE REGISTRATION IS
CANCELLED OR SUSPENDED UNDER THIS PARAGRAPH SHALL HAVE  NO  RIGHT  TO  A
HEARING  UNDER  THIS CHAPTER AND SHALL HAVE NO RIGHT TO COMMENCE A COURT
ACTION OR PROCEEDING OR TO ANY OTHER LEGAL RECOURSE AGAINST THE  COMMIS-
SIONER  WITH  RESPECT  TO  SUCH  REFUSAL,  SUSPENSION  OR  CANCELLATION;
PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL  BE  CONSTRUED  TO  DENY  A
VAPOR  PRODUCTS  DEALER A HEARING UNDER ARTICLE THIRTEEN-F OF THE PUBLIC
HEALTH LAW OR TO PROHIBIT VAPOR PRODUCTS DEALERS FROM COMMENCING A COURT
ACTION OR PROCEEDING  AGAINST  AN  ENFORCEMENT  OFFICER  AS  DEFINED  IN
SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC HEALTH LAW.
  (E)  IF A VAPOR PRODUCTS DEALER IS SUSPENDED, CANCELLED OR REVOKED AND
SUCH VAPOR PRODUCTS DEALER SELLS VAPOR PRODUCTS THROUGH  MORE  THAN  ONE
PLACE OF BUSINESS IN THIS STATE, THE VAPOR PRODUCTS DEALER'S CERTIFICATE
OF  REGISTRATION ISSUED TO THAT PLACE OF BUSINESS, CART, STAND, TRUCK OR
OTHER MERCHANDISING DEVICE, WHERE  SUCH  VIOLATION  OCCURRED,  SHALL  BE
SUSPENDED,  REVOKED  OR  CANCELLED.  PROVIDED,  HOWEVER,  UPON  A  VAPOR
PRODUCTS DEALER'S THIRD SUSPENSION, CANCELLATION OR REVOCATION WITHIN  A
FIVE-YEAR PERIOD FOR ANY ONE OR MORE BUSINESSES OWNED OR OPERATED BY THE
VAPOR  PRODUCTS  DEALER, SUCH SUSPENSION, CANCELLATION, OR REVOCATION OF
THE VAPOR PRODUCTS DEALER'S CERTIFICATE OF REGISTRATION SHALL  APPLY  TO
ALL  PLACES  OF  BUSINESS  WHERE  HE OR SHE SELLS VAPOR PRODUCTS IN THIS
STATE.

S. 1509                            98                            A. 2009

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

S. 1509                            99                            A. 2009

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

S. 1509                            100                           A. 2009

its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  § 20. This act shall take effect on  the  one  hundred  eightieth  day
after  it shall have become a law; provided, however that section seven-
teen of this act shall take effect on the first day of a quarterly peri-
od described in subdivision (b) of section 1136  of  the  tax  law  next
commencing  at least one hundred eighty days after this act shall become
a law, and shall apply to sales and uses of vapor products on  or  after
such date.

                                 PART VV

  Section  1.  This act shall be known and may be cited as the "Cannabis
Regulation and Taxation Act".
  § 2. A new chapter 7-A of the consolidated laws is added, to  read  as
follows:

                  CHAPTER 7-A OF THE CONSOLIDATED LAWS
                              CANNABIS LAW
                                ARTICLE 1
          SHORT TITLE; POLICY OF STATE AND PURPOSE OF CHAPTER;
                               DEFINITIONS

Section 1. Short title.
        2. Policy of state and purpose of chapter.
        3. Definitions.

  §  1.  Short Title.   This chapter shall be known and may be cited and
referred to as the "cannabis law".
  § 2. Policy of state and purpose of chapter.  It is hereby declared as
policy of the state of New York that it is necessary to  properly  regu-
late  and  control  the cultivation, processing, manufacture, wholesale,
and retail production, distribution, transportation, and sale of  canna-
bis,  cannabis  related  products,  medical  cannabis, and hemp cannabis
within the state of New York, for the purposes of fostering and  promot-
ing  temperance  in  their  consumption,  to properly protect the public
health, safety, and welfare, and to promote social equality. It is here-
by declared that such policy will best be carried out by empowering  the
state  office  of  cannabis  management  and  its executive director, to
determine whether public convenience and advantage will be  promoted  by
the  issuance  of  registrations,  licenses  and/or permits granting the
privilege to produce, distribute, transport, sell, or traffic in  canna-
bis,  medical cannabis, or hemp cannabis, to increase or decrease in the
number thereof and the location of  premises  registered,  licensed,  or
permitted  thereby, subject only to the right of judicial review herein-
after provided for. It is the purpose of this chapter to carry out  that
policy  in  the  public  interest.  The  restrictions,  regulations, and
provisions contained in this chapter are enacted by the legislature  for
the  protection  of the health, safety, and welfare of the people of the
state.
  § 3. Definitions.   Whenever used in this  chapter,  unless  otherwise
expressly  stated  or  unless  the  context or subject matter requires a

S. 1509                            101                           A. 2009

different meaning, the following terms  shall  have  the  representative
meanings hereinafter set forth or indicated:
  1. "Applicant" means a for-profit entity or not-for-profit corporation
and includes: board members, officers, managers, owners, partners, prin-
cipal  stakeholders  and  members  who submit an application to become a
registered organization, licensee or permittee.
  2. "Bona fide cannabis retailer association" shall mean an association
of retailers holding licenses under this chapter,  organized  under  the
non-profit or not-for-profit laws of this state.
  3.  "Cannabis"  means  all  parts  of the plant of the genus cannabis,
whether growing or not; the seeds thereof; the resin extracted from  any
part  of  the  plant; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds or resin.
  4. "Concentrated cannabis" means: (a)  the  separated  resin,  whether
crude or purified, obtained from a plant of the genus cannabis; or (b) a
material,  preparation,  mixture,  compound  or  other  substance  which
contains more than three percent by weight of delta-9 tetrahydrocannabi-
nol, or its isomer, delta-8 dibenzopyran numbering  system,  or  delta-1
tetrahydrocannabinol  or  its  isomer, delta 1 (6) monoterpene numbering
system.
  5. "Cannabis consumer" means a person,  twenty-one  years  of  age  or
older,  who  purchases cannabis or cannabis products for personal use by
persons twenty-one years of age or older, but not for resale to others.
  6. "Adult-use cannabis processor"  means  a  person  licensed  by  the
office  to  purchase  cannabis  and  concentrated cannabis from cannabis
cultivators, to process cannabis, concentrated  cannabis,  and  cannabis
infused  products, package and label cannabis, concentrated cannabis and
cannabis infused products for sale in retail outlets, and sell cannabis,
concentrated cannabis and cannabis  infused  products  at  wholesale  to
licensed adult-use cannabis distributors.
  7.  "Cannabis product" or "adult-use cannabis" means cannabis, concen-
trated cannabis, and cannabis-infused products for  use  by  a  cannabis
consumer.
  8.  "Adult-use  cannabis  retail dispenser" means a person licensed by
the executive director to purchase cannabis, concentrated cannabis,  and
cannabis-infused products from cannabis processors and cannabis distrib-
utors,  and  sell  cannabis,  concentrated cannabis and cannabis-infused
products in a retail outlet.
  9. "Certified medical use" means the acquisition, possession, use,  or
transportation of medical cannabis by a certified patient, or the acqui-
sition,   possession,  delivery,  transportation  or  administration  of
medical cannabis by  a  designated  caregiver  or  designated  caregiver
facility,  for  use  as  part  of the treatment of the patient's serious
condition, as authorized in a certification under this chapter including
enabling the patient to tolerate treatment for the serious condition.
  10. "Caring for" means treating a patient, in the course of which  the
practitioner  has  completed  a full assessment of the patient's medical
history and current medical condition.
  11. "Certified patient" means a patient who is a resident of New  York
state or receiving care and treatment in New York state as determined by
the  executive  director  in  regulation, and is certified under section
thirty of this chapter.
  12. "Certification" means a certification, made under this chapter.
  13. "Cultivation" shall include, but not be limited to, the  planting,
growing,  cloning,  harvesting,  drying, curing, grading and trimming of
cannabis.

S. 1509                            102                           A. 2009

  14. "Executive director" means the executive director of the office of
cannabis management.
  15.  "Convicted"  and "conviction" include and mean a finding of guilt
resulting from a plea of guilty, the decision of a court  or  magistrate
or  the verdict of a jury, irrespective of the pronouncement of judgment
or the suspension thereof.
  16. "Designated caregiver" means an individual designated by a  certi-
fied  patient  in a registry application. A certified patient may desig-
nate up to five designated caregivers.
  17. "Designated caregiver facility" means a general hospital or  resi-
dential  health care facility operating pursuant to article twenty-eight
of the public health law; an adult care facility operating  pursuant  to
title  two  of  article  seven  of  the social services law; a community
mental health residence established pursuant to  section  41.44  of  the
mental hygiene Law; a hospital operating pursuant to section 7.17 of the
mental  hygiene  law;  a  mental  hygiene facility operating pursuant to
article thirty-one of the mental hygiene law; an inpatient  or  residen-
tial  treatment  program certified pursuant to article thirty-two of the
mental hygiene law; a residential facility for the care and treatment of
persons with developmental disabilities operating  pursuant  to  article
sixteen  of the mental hygiene law; a residential treatment facility for
children and youth operating  pursuant  to  article  thirty-one  of  the
mental  hygiene  law;  a  private or public school; research institution
with an internal review board; or any other facility  as  determined  by
the  executive director in regulation; that registers with the office of
cannabis management to assist one or more certified  patients  with  the
acquisition,  possession,  delivery, transportation or administration of
medical cannabis.
  18. "Felony" means any criminal offense classified as a  felony  under
the  laws  of  this state or any criminal offense committed in any other
state, district, or territory of the United States and classified  as  a
felony  therein which if committed within this state, would constitute a
felony in this state.
  19. "Form of medical cannabis" means characteristics  of  the  medical
cannabis  recommended  or  limited  for  a particular certified patient,
including the method of consumption and any particular strain,  variety,
and quantity or percentage of cannabis or particular active ingredient.
  20.  "Government  agency"  means  any office, division, board, bureau,
commission, office, agency, authority or public corporation of the state
or federal government or a county,  city,  town  or  village  government
within the state.
  21.  "Industrial hemp" means the plant Cannabis sativa L. and any part
of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
extracts,  cannabinoids,  isomers,  acids,  salts, and salts of isomers,
whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
tration  of  not  more  than three-tenths of one percent on a dry weight
basis, used or intended for an industrial purpose or those  food  and/or
food  ingredients  that  are  generally  recognized  as safe, as further
defined and regulated in the agriculture and markets law.
  22. "Hemp cannabis" means the plant Cannabis sativa L. and any part of
such plant, including the seeds thereof and all  derivatives,  extracts,
cannabinoids, isomers, acids, salts, and salts of isomers, whether grow-
ing  or  not,  with  a delta-9 tetrahydrocannabinol concentration of not
more than an amount determined by the  office  in  regulation,  used  or
intended  for  human  or  animal  consumption or use for its cannabinoid
content, as determined by the executive  director  in  regulation.  Hemp

S. 1509                            103                           A. 2009

cannabis  excludes  industrial  hemp used or intended exclusively for an
industrial purpose and those  food  and/or  food  ingredients  that  are
generally recognized as safe, as governed by the Agriculture and Markets
Law,  and shall not be regulated as "hemp" or "hemp cannabis" within the
meaning of this section.
  23. "Cannabinoid grower" means a person licensed by the office, and in
compliance with article twenty-nine of the agriculture and markets  law,
to  acquire, possess, cultivate, and sell hemp cannabis for its cannabi-
noid content.
  24. "Cannabinoid extractor" means a person licensed by the  office  to
acquire,  possess,  extract  and manufacture hemp cannabis from licensed
cannabinoid growers for  the  manufacture  and  sale  of  hemp  cannabis
products marketed for cannabinoid content and used or intended for human
or animal consumption or use.
  25.  "Individual dose" means a single measure of raw cannabis, medical
cannabis or non-infused concentrate or medical concentrate.
  26. "Labor peace agreement" means an agreement between an entity and a
labor organization that, at a minimum, protects the state's  proprietary
interests  by  prohibiting labor organizations and members from engaging
in picketing, work stoppages, boycotts, and any other economic interfer-
ence with the registered organization or licensee's business.
  27. "License" means a license issued pursuant to this chapter.
  28. "Medical cannabis" means cannabis as defined in subdivision  three
of  this section, intended for a certified medical use, as determined by
the executive director in consultation with the commissioner of health.
  30. "Office" or "office of cannabis management"  means  the  New  York
state office of cannabis management.
  31. "Permit" means a permit issued pursuant to this chapter.
  32.  "Permittee"  means  any  person  to whom a permit has been issued
pursuant to this chapter.
  33. "Person" means individual, institution, corporation, government or
governmental subdivision or agency, business trust, estate, trust, part-
nership or association, or any other legal entity.
  34. "Practitioner" means a practitioner who:   (i)  is  authorized  to
prescribe  controlled  substances  within the state, (ii) by training or
experience is qualified to treat  a  serious  condition  as  defined  in
subdivision  forty-four of this section; and (iii) completes, at a mini-
mum, a two-hour course as determined by the executive director in  regu-
lation;  provided  however,  the executive director may revoke a practi-
tioner's ability to certify patients for cause.
  35. "Processing" includes, but is not limited to,  blending,  extract-
ing,  infusing,  packaging,  labeling,  branding and otherwise making or
preparing cannabis products. Processing shall  not  include  the  culti-
vation of cannabis.
  36.  "Public  place"  means a public place as defined in regulation by
the executive director.
  37. "Registered organization" means an organization  registered  under
article three of this chapter.
  38. "Registry application" means an application properly completed and
filed  with  the  office  of  cannabis management by a certified patient
under article three of this chapter.
  39. "Registry identification card" means a document that identifies  a
certified  patient  or  designated  caregiver, as provided under section
thirty-two of this chapter.
  40. "Retail sale" or "sale at retail" means a sale to a consumer or to
any person for any purpose other than for resale.

S. 1509                            104                           A. 2009

  41. "Retailer" means any person who sells at retail any cannabis prod-
uct, the sale of which a license is required  under  the  provisions  of
this chapter.
  42.  "Sale" means any transfer, exchange or barter in any manner or by
any means whatsoever, and includes and  means  all  sales  made  by  any
person, whether principal, proprietor, agent, servant or employee of any
cannabis product.
  43.  "To sell" includes to solicit or receive an order for, to keep or
expose for sale, and to keep with intent to sell and shall  include  the
transportation or delivery of any cannabis product in the state.
  44.  "Serious  condition"  means  having  one  of the following severe
debilitating or life-threatening conditions: cancer, positive status for
human immunodeficiency virus or  acquired  immune  deficiency  syndrome,
amyotrophic  lateral sclerosis, Parkinson's disease, multiple sclerosis,
damage to the nervous tissue of the spinal cord with objective neurolog-
ical indication of intractable spasticity, epilepsy, inflammatory  bowel
disease,   neuropathies,  Huntington's  disease,  post-traumatic  stress
disorder, pain that degrades health and functional capability where  the
use  of  medical cannabis is an alternative to opioid use, substance use
disorder, Alzheimer's, muscular dystrophy, dystonia, rheumatoid  arthri-
tis,  autism,  any  condition  authorized as part of a cannabis research
license, or any other condition as added by the executive director.
  45. "Traffic in" includes to cultivate, process, manufacture, distrib-
ute or sell any cannabis, cannabis product, medical cannabis or hemp  at
wholesale or retail.
  46.  "Terminally ill" means an individual has a medical prognosis that
the individual's life expectancy is approximately one year  or  less  if
the illness runs its normal course.
  47. "Wholesale sale" or "sale at wholesale" means a sale to any person
for purposes of resale.
  48. "Distributor" means any person who sells at wholesale any cannabis
product,  except  medical  cannabis,  for the sale of which a license is
required under the provisions of this chapter.
  49. "Warehouse" means and includes a place in which cannabis  products
are housed or stored.

                                ARTICLE 2
              NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT

Section 9. Establishment of an office of cannabis management.
        10. Executive director.
        11. Executive director's authority.
        12. Rulemaking authority.
        13. State cannabis advisory board.
        14. Disposition of moneys received for license fees.
        15. Legal presumptions.
        16. Violations  of  cannabis  laws or regulations; penalties and
              injunctions.
        17. Formal hearings; notice and procedure.
        18. Ethics, transparency and accountability.
        19. Public health management campaign.
  § 9. Establishment of an office of cannabis management.  Pursuant to a
chapter  of the laws of two thousand nineteen which added this  chapter,
there  is  hereby established, within the division of alcoholic beverage
control, an independent office of cannabis management, which shall  have
exclusive  jurisdiction  to  exercise  the powers and duties provided by

S. 1509                            105                           A. 2009

this chapter. The office shall exercise its authority by and through  an
executive director.
  §  10. Executive director.  The executive director of the state office
of cannabis management shall receive an annual salary not to  exceed  an
amount  appropriated therefor by the legislature and his or her expenses
actually and necessarily incurred in the  performance  of  his  official
duties, unless otherwise provided by the legislature.
  §  11. Functions, powers and duties of the office and executive direc-
tor.  The office of cannabis management, by and  through  its  executive
director, shall have the following powers and duties:
  1.  To  issue  or  refuse to issue any registration, license or permit
provided for in this chapter.
  2. To limit, or not to limit, in the executive director's  discretion,
the  number  of  registrations, licenses and permits of each class to be
issued within the state or any political  subdivision  thereof,  and  in
connection therewith to prohibit the acceptance of applications for such
classes which have been so limited.
  3.  To  revoke, cancel or suspend for cause any registration, license,
or permit issued under this chapter and/or to impose a civil penalty for
cause against any holder of a registration, license,  or  permit  issued
pursuant to this chapter. Any civil penalty so imposed shall be in addi-
tion to and separate and apart from the terms and provisions of the bond
required pursuant to section thirty-six of this chapter.
  4.  To  fix  by  rule  the  standards of cultivation and processing of
medical cannabis, adult use cannabis and hemp  cannabis,  including  but
not  limited  to,  the  ability  to  regulate  potency  and the types of
products which may be manufactured and/or processed, in order to  ensure
the  health  and  safety of the public and the use of proper ingredients
and methods in the manufacture of all cannabis and hemp cannabis  to  be
sold or consumed in the state.
  5.  To  hold  hearings,  subpoena  witnesses, compel their attendance,
administer oaths, to examine any person under  oath  and  in  connection
therewith  to require the production of any books or records relative to
the inquiry. A subpoena issued under this section shall be regulated  by
the civil practice law and rules.
  6.  To  limit or prohibit, at any time of public emergency and without
previous notice or advertisement, the cultivation, processing,  distrib-
ution  or sale of any or all cannabis products, medical cannabis or hemp
cannabis, for and during the period of such emergency.
  7. To appoint any necessary directors, deputies, counsels, assistants,
investigators, and other employees within the limits provided by  appro-
priation.  Investigators so employed by the office shall be deemed to be
peace officers for the purpose of enforcing the provisions of the canna-
bis  control law or judgements or orders obtained for violation thereof,
with all the powers set forth in section 2.20 of the criminal  procedure
law.
  8.  To  remove any employee of the office for cause, after giving such
employee a copy of the charges against him or her  in  writing,  and  an
opportunity to be heard thereon. Any action taken under this subdivision
shall be subject to and in accordance with the civil service law.
  9.  To  inspect or provide for the inspection at any time of any prem-
ises where cannabis or hemp cannabis is cultivated,  processed,  stored,
distributed or sold.
  10. To prescribe forms of applications for registrations, licenses and
permits  under  this  chapter and of all reports deemed necessary by the
office.

S. 1509                            106                           A. 2009

  11. To delegate the powers provided in  this  section  to  such  other
officers or employees or other state agencies as may be deemed appropri-
ate by the executive director.
  12.  To  appoint  such advisory groups and committees as the executive
director deems necessary to provide assistance to the  office  to  carry
out the purposes and objectives of this chapter.
  13.  To  exercise the powers and perform the duties in relation to the
administration of the office as are necessary but not specifically vest-
ed by this chapter, including but not limited to  budgetary  and  fiscal
matters.
  14. To develop and establish minimum criteria for certifying employees
to  work  in  the  cannabis  industry,  including the establishment of a
cannabis workers certification program.
  15. To enter into contracts, memoranda of  understanding,  and  agree-
ments  as deemed appropriate by the executive director to effectuate the
policy and purpose of this chapter.
  16. To issue and administer low interest  or  zero-interest  loans  to
qualified  social  equity  applicants provided the office has sufficient
funds available for such purposes.
  17. If the executive director finds that  public  health,  safety,  or
welfare imperatively requires emergency action, and incorporates a find-
ing  to  that effect in an order, summary suspension of a license may be
ordered, effective on the date specified in such order or  upon  service
of  a  certified  copy of such order on the licensee, whichever shall be
later,  pending  proceedings  for  revocation  or  other  action.  These
proceedings  shall  be  promptly instituted and determined. In addition,
the executive director may order the administrative seizure of  product,
issue a stop order, or take any other action necessary to effectuate and
enforce the policy and purpose of this chapter.
  18.  To  issue regulations, declaratory rulings, guidance and industry
advisories.
  § 12. Rulemaking authority.  1. The office shall  perform  such  acts,
prescribe  such  forms and propose such rules, regulations and orders as
it may deem necessary or proper to fully effectuate  the  provisions  of
this chapter.
  2. The office shall have the power to promulgate any and all necessary
rules  and regulations governing the production, processing, transporta-
tion, distribution, and sale of medical cannabis, recreational cannabis,
and hemp cannabis, including but not  limited  to  the  registration  of
organizations  authorized  to traffic in medical cannabis, the licensing
and/or permitting of adult-use cannabis cultivators, processors, cooper-
atives, distributors, and retail  dispensaries,  and  the  licensing  of
cannabinoid growers and extractors, including, but not limited to:
  (a) prescribing forms and establishing application, reinstatement, and
renewal fees;
  (b)  the  qualifications  and  selection  criteria  for  registration,
licensing, or permitting;
  (c) the books and records to be created and maintained  by  registered
organizations,  licensees,  and  permittees, including the reports to be
made thereon to the office, and inspection of  any  and  all  books  and
records maintained by any registered organization, licensee, or permitee
and  on the premise of any registered organization, licensee, or permit-
tee;
  (d) methods of producing, processing, and packaging cannabis,  medical
cannabis,  cannabis-infused  products, and concentrated cannabis; condi-
tions of sanitation, and standards of ingredients, quality, and identity

S. 1509                            107                           A. 2009

of cannabis products cultivated, processed, packaged, or sold by  regis-
tered organizations and licensees;
  (e)  security  requirements for adult-use cannabis retail dispensaries
and premises where cannabis products, including  medical  cannabis,  are
cultivated,  produced,  processed,  or  stored, and safety protocols for
registered organizations, licensees and their employees; and
  (f) hearing procedures and additional causes for cancellation, revoca-
tion, and/or civil penalties against any person registered, licensed, or
permitted by the authority.
  3. The office shall promulgate rules and regulations that  are  calcu-
lated to:
  (a)  prevent  the  distribution of adult-use cannabis to persons under
twenty-one years of age;
  (b) prevent the revenue from the sale of cannabis from going to crimi-
nal enterprises, gangs, and cartels;
  (c) prevent the diversion of cannabis from this state to other states;
  (d) prevent cannabis activity that is legal under state law from being
used as a cover or pretext for the trafficking of other illegal drugs or
other illegal activity;
  (e) prevent violence and the use of firearms in  the  cultivation  and
distribution of cannabis;
  (f)  prevent  drugged  driving  and  the exacerbation of other adverse
public health consequences associated with the use of cannabis;
  (g) prevent the growing of cannabis on public lands and the  attendant
public  safety and environmental dangers posed by cannabis production on
public lands; and
  (h) prevent the possession and use of cannabis on federal property.
  4. The office, in consultation with the department of agriculture  and
markets  and the department of environmental conservation, shall promul-
gate necessary rules and regulations governing the  safe  production  of
cannabis,  including environmental and energy standards and restrictions
on the use of pesticides.
  § 13. State cannabis advisory board.  1. The executive director  shall
have the authority to establish within the office a state cannabis advi-
sory  board,  which may advise the office on cannabis cultivation, proc-
essing, distribution, transport,  testing  and  sale  and  consider  all
matters submitted to it by the executive director.
  2. The executive director of the office shall serve as the chairperson
of  the  board.  The  vice  chairperson  shall be elected from among the
members of the board by the members of such board, and  shall  represent
the  board in the absence of the chairperson at all official board func-
tions.
  3. The members of the board shall receive no  compensation  for  their
services  but  shall  be  allowed  their  actual  and necessary expenses
incurred in the performance of their duties as board members.
  4. The executive director shall  be  authorized  to  promulgate  regu-
lations establishing the number of members on the board, the term of the
board  members  and  any  other  terms or conditions regarding the state
cannabis advisory board.
  § 14. Disposition of moneys received for license  fees.    The  office
shall  establish  a  scale  of application, licensing, and renewal fees,
based upon the cost of enforcing this chapter and the size of the canna-
bis business being licensed, as follows:
  1. The office shall charge each registered organization, licensee  and
permittee  a  registration, licensure or permit fee, and renewal fee, as

S. 1509                            108                           A. 2009

applicable.  The fees may vary depending upon the nature  and  scope  of
the different registration, licensure and permit activities.
  2. The total fees assessed pursuant to this chapter shall be set at an
amount  that  will  generate  sufficient total revenue to, at a minimum,
fully cover the total costs of administering this chapter.
  3. All registration and licensure fees shall be set on a scaled  basis
by the office, dependent on the size of the business.
  4.  The  office shall deposit all fees collected in the New York state
cannabis revenue fund established pursuant to section ninety-nine-ff  of
the state finance law.
  §  15.  Legal  presumptions.   The action, proceedings, authority, and
orders of the office in enforcing the provisions of the cannabis law and
applying them to specific cases shall at all times  be  regarded  as  in
their  nature  judicial,  and  shall  be treated as prima facie just and
legal.
  § 16. Violations  of  cannabis  laws  or  regulations;  penalties  and
injunctions.    1. A person who willfully violates any provision of this
chapter, or any regulation lawfully made or established  by  any  public
officer  under  authority  of this chapter, the punishment for violating
which is not otherwise prescribed by this chapter or any other  law,  is
punishable  by  imprisonment  not  exceeding  one year, or by a fine not
exceeding five thousand dollars or by both.
  2. Any person  who  violates,  disobeys  or  disregards  any  term  or
provision  of  this chapter or of any lawful notice, order or regulation
pursuant thereto for which a civil penalty is  not  otherwise  expressly
prescribed  by  law,  shall  be  liable to the people of the state for a
civil penalty of not to exceed five  thousand  dollars  for  every  such
violation.
  3.  The penalty provided for in subdivision one of this section may be
recovered by an action brought by the executive director in any court of
competent jurisdiction.
  4. Nothing in this section shall be construed to alter or  repeal  any
existing  provision  of law declaring such violations to be misdemeanors
or felonies or prescribing the penalty therefor.
  5. Such civil penalty may be released or compromised by the  executive
director  before  the  matter has been referred to the attorney general,
and where such matter has been referred to  the  attorney  general,  any
such  penalty may be released or compromised and any action commenced to
recover the same may be settled and discontinued by the attorney general
with the consent of the executive director.
  6. It shall be the duty of the attorney general upon  the  request  of
the  executive director to bring an action for an injunction against any
person who violates, disobeys or disregards any  term  or  provision  of
this chapter or of any lawful notice, order or regulation pursuant ther-
eto;  provided,  however,  that the executive director shall furnish the
attorney general with such material, evidentiary matter or proof as  may
be  requested  by  the  attorney  general for the prosecution of such an
action.
  7. It is the purpose of this section to provide additional and cumula-
tive remedies, and nothing  herein  contained  shall  abridge  or  alter
rights  of  action  or remedies now or hereafter existing, nor shall any
provision of this section,  nor  any  action  done  by  virtue  of  this
section,  be construed as estopping the state, persons or municipalities
in the exercising of their respective rights.
  § 17. Formal hearings; notice and procedure.  1. The executive  direc-
tor,  or any person designated by him or her for this purpose, may issue

S. 1509                            109                           A. 2009

subpoenas and administer oaths in connection with any hearing or  inves-
tigation  under or pursuant to this chapter, and it shall be the duty of
the executive director and any persons designated by him or her for such
purpose  to  issue  subpoenas  at  the request of and upon behalf of the
respondent.
  2. The executive director and those designated by him or her shall not
be bound by the laws of evidence in the conduct of hearing  proceedings,
but  the  determination  shall  be  founded  upon sufficient evidence to
sustain it.
  3. Notice of hearing shall be served at least fifteen  days  prior  to
the  date  of  the hearing, provided that, whenever because of danger to
the public health, safety or  welfare  it  appears  prejudicial  to  the
interests  of  the people of the state to delay action for fifteen days,
the executive director may serve the respondent with an order  requiring
certain  action  or  the  cessation of certain activities immediately or
within a specified period of less than fifteen days.
  4. Service of notice of hearing or order shall  be  made  by  personal
service  or  by  registered or certified mail. Where service, whether by
personal service or by registered or certified mail,  is  made  upon  an
incompetent,  partnership,  or  corporation,  it  shall be made upon the
person or persons designated to  receive  personal  service  by  article
three of the civil practice law and rules.
  5.  At a hearing, the respondent may appear personally, shall have the
right of counsel, and may cross-examine witnesses against him or her and
produce evidence and witnesses in his or her behalf.
  6. Following a hearing, the executive director  may  make  appropriate
determinations and issue a final order in accordance therewith.
  7.  The  executive director may adopt, amend and repeal administrative
rules and regulations governing  the  procedures  to  be  followed  with
respect  to  hearings,  such  rules to be consistent with the policy and
purpose of this chapter and the effective and fair  enforcement  of  its
provisions.
  8.  The provisions of this section shall be applicable to all hearings
held pursuant to this chapter, except where  other  provisions  of  this
chapter  applicable  thereto  are inconsistent therewith, in which event
such other provisions shall apply.
  § 18. Ethics, transparency and  accountability.    No  member  of  the
office  or any officer, deputy, assistant, inspector or employee thereof
shall have any interest, direct or indirect, either  proprietary  or  by
means  of  any  loan, mortgage or lien, or in any other manner, in or on
any premises where cannabis, medical cannabis  or  hemp  is  cultivated,
processed,  distributed  or sold; nor shall he or she have any interest,
direct or indirect, in any business wholly or partially devoted  to  the
cultivation,  processing,  distribution, sale, transportation or storage
of cannabis, medical cannabis or hemp, or own any stock  in  any  corpo-
ration which has any interest, proprietary or otherwise, direct or indi-
rect, in any premises where cannabis, medical cannabis or hemp is culti-
vated,  processed,  distributed  or  sold,  or in any business wholly or
partially devoted to the cultivation,  processing,  distribution,  sale,
transportation  or  storage  of  cannabis,  medical cannabis or hemp, or
receive any commission or profit whatsoever, direct  or  indirect,  from
any  person applying for or receiving any license or permit provided for
in this chapter, or hold any other elected or appointed public office in
the state or in any political subdivision. Anyone who  violates  any  of
the  provisions of this section shall be removed or shall divulge him or
herself of such direct or indirect interests.

S. 1509                            110                           A. 2009

  § 19. Public health campaign.  The office, in  consultation  with  the
commissioners  of  the  department  of  health, office of alcoholism and
substance abuse services and office of mental health, shall develop  and
implement  a  comprehensive  public  health campaign regarding adult-use
cannabis.

                                ARTICLE 3
                            MEDICAL CANNABIS

Section 30. Certification of patients.
        31. Lawful medical use.
        32. Registry identification cards.
        33. Registration as a designated caregiver facility.
        34. Registered organizations.
        35. Registering of registered organizations.
        36. Expedited registration of registered organizations.
        37. Reports of registered organizations.
        38. Evaluation; research programs; report by office.
        39. Cannabis research license.
        40. Registered organizations and adult-use cannabis.
        41. Home cultivation of medical cannabis.
        42. Relation to other laws.
        43. Protections for the medical use of cannabis.
        44. Regulations.
        45. Suspend; terminate.
        46. Pricing.
        47. Severability.
  §  30. Certification of patients.  1. A patient certification may only
be issued if:
  (a) the patient has a serious condition, which shall be  specified  in
the patient's health care record;
  (b)  the  practitioner by training or experience is qualified to treat
the serious condition;
  (c) the patient is under the practitioner's continuing  care  for  the
serious condition; and
  (d)  in  the  practitioner's  professional  opinion and review of past
treatments, the patient is likely to receive therapeutic  or  palliative
benefit  from  the  primary  or adjunctive treatment with medical use of
cannabis for the serious condition.
  2. The certification shall include: (a) the name, date  of  birth  and
address  of  the patient; (b) a statement that the patient has a serious
condition and the patient is under the practitioner's care for the seri-
ous condition; (c) a statement attesting that all requirements of subdi-
vision one of this section have been satisfied; (d) the  date;  and  (e)
the name, address, telephone number, and the signature of the certifying
practitioner.  The executive director may require by regulation that the
certification shall be on a form provided by the office. The practition-
er may state in the certification that, in  the  practitioner's  profes-
sional  opinion,  the  patient  would benefit from medical cannabis only
until a specified date. The practitioner may state in the  certification
that,  in the practitioner's professional opinion, the patient is termi-
nally ill and that the certification shall not expire until the  patient
dies.
  3.  In  making a certification, the practitioner may consider the form
of medical cannabis the patient should consume, including the method  of
consumption and any particular strain, variety, and quantity or percent-

S. 1509                            111                           A. 2009

age of cannabis or particular active ingredient, and appropriate dosage.
The  practitioner  may  state in the certification any recommendation or
limitation the practitioner makes, in his or her  professional  opinion,
concerning the appropriate form or forms of medical cannabis and dosage.
  4.  Every  practitioner  shall  consult  the  prescription  monitoring
program registry prior to making or issuing  a  certification,  for  the
purpose  of  reviewing  a  patient's  controlled  substance history. For
purposes of this section, a practitioner may  authorize  a  designee  to
consult  the  prescription  monitoring  program  registry  on his or her
behalf, provided that such designation is  in  accordance  with  section
thirty-three hundred forty-three-a of the public health law.
  5.  The  practitioner  shall  give  the certification to the certified
patient, and place a copy in the patient's health care record.
  6. No practitioner shall issue a certification under this section  for
himself or herself.
  7.  A  registry  identification  card  based  on a certification shall
expire one year after the date the certification is signed by the  prac-
titioner.
  8.  (a)  If  the practitioner states in the certification that, in the
practitioner's professional opinion,  the  patient  would  benefit  from
medical  cannabis only until a specified earlier date, then the registry
identification card shall expire on that date; (b) if  the  practitioner
states  in  the  certification  that  in the practitioner's professional
opinion the patient is terminally ill and that the  certification  shall
not expire until the patient dies, then the registry identification card
shall state that the patient is terminally ill and that the registration
card  shall  not  expire until the patient dies; (c) if the practitioner
re-issues the certification to terminate the certification on an earlier
date, then the registry identification card shall expire  on  that  date
and  shall  be  promptly  destroyed by the certified patient; (d) if the
certification so provides, the registry identification card shall  state
any  recommendation  or limitation by the practitioner as to the form or
forms of medical cannabis or dosage for the certified patient;  and  (e)
the executive director shall make regulations to implement this subdivi-
sion.
  § 31. Lawful medical use.  1. The possession, acquisition, use, deliv-
ery,  transfer, transportation, or administration of medical cannabis by
a certified patient, designated caregiver or designated caregiver facil-
ity, for certified medical use,  shall  be  lawful  under  this  article
provided that:
  (a)  the  cannabis  that may be possessed by a certified patient shall
not exceed a sixty-day supply of the dosage as determined by the practi-
tioner, consistent with any guidance and regulations issued by the exec-
utive director, provided that during the last seven days of  any  sixty-
day period, the certified patient may also possess up to such amount for
the next sixty-day period;
  (b)  the  cannabis that may be possessed by designated caregivers does
not exceed the quantities referred to in paragraph (a) of this  subdivi-
sion for each certified patient for whom the caregiver possesses a valid
registry identification card, up to five certified patients;
  (c) the cannabis that may be possessed by designated caregiver facili-
ties does not exceed the quantities referred to in paragraph (a) of this
subdivision  for  each  certified patient under the care or treatment of
the facility;
  (d) the form or forms of medical cannabis that may be possessed by the
certified patient, designated caregiver or designated caregiver facility

S. 1509                            112                           A. 2009

pursuant to a certification shall be in compliance with any  recommenda-
tion  or  limitation  by  the  practitioner  as  to the form or forms of
medical cannabis or dosage for the  certified  patient  in  the  certif-
ication; and
  (e)  the  medical  cannabis  shall  be kept in the original package in
which it was dispensed  under  this  article,  except  for  the  portion
removed  for  immediate  consumption  for  certified  medical use by the
certified patient.
  2. Notwithstanding subdivision one of this section:
  (a) possession of medical cannabis shall  not  be  lawful  under  this
article  if  it  is smoked or grown in a public place, regardless of the
form of medical cannabis stated in the patient's certification.
  (b) a person possessing medical  cannabis  under  this  chapter  shall
possess  his  or  her  registry identification card at all times when in
immediate possession of medical cannabis.
  § 32. Registry identification cards.  1. Upon approval of the  certif-
ication, the office shall issue registry identification cards for certi-
fied  patients and designated caregivers. A registry identification card
shall expire as provided in this article or  as  otherwise  provided  in
this  section.    The office shall begin issuing registry identification
cards as soon as practicable after the certifications required  by  this
chapter are granted. The office may specify a form for a registry appli-
cation,  in  which  case  the  office shall provide the form on request,
reproductions of the form may be used, and the form shall  be  available
for downloading from the office's website.
  2.  To obtain, amend or renew a registry identification card, a certi-
fied patient or designated caregiver shall file a  registry  application
with  the office, unless otherwise exempted by the executive director in
regulation.  The  registry  application  or  renewal  application  shall
include:
  (a) in the case of a certified patient:
  (i)  the patient's certification, a new written certification shall be
provided with a renewal application;
  (ii) the name, address, and date of birth of the patient;
  (iii) the date of the certification;
  (iv) if the patient has a registry  identification  card  based  on  a
current  valid  certification,  the  registry  identification number and
expiration date of that registry identification card;
  (v) the specified date until which  the  patient  would  benefit  from
medical cannabis, if the certification states such a date;
  (vi) the name, address, and telephone number of the certifying practi-
tioner;
  (vii)  any  recommendation or limitation by the practitioner as to the
form or forms of medical cannabis or dosage for the certified patient;
  (viii) if the certified patient designates a designated caregiver, the
name, address, and date of birth of the designated caregiver, and  other
individual identifying information required by the office; and
  (ix) other individual identifying information required by the office;
  (b) in the case of a designated caregiver:
  (i) the name, address, and date of birth of the designated caregiver;
  (ii)  if  the designated caregiver has a registry identification card,
the registry identification number and expiration date of that  registry
identification card; and
  (iii) other individual identifying information required by the office;
  (c)  a  statement  that  a  false statement made in the application is
punishable under section 210.45 of the penal law;

S. 1509                            113                           A. 2009

  (d) the date of the application and the  signature  of  the  certified
patient or designated caregiver, as the case may be;
  (e) any other requirements determined by the executive director.
  3. Where a certified patient is under the age of eighteen or otherwise
incapable of consent:
  (a)  The  application for a registry identification card shall be made
by an appropriate person over eighteen years  of  age.  The  application
shall state facts demonstrating that the person is appropriate.
  (b)  The designated caregiver shall be: (i) a parent or legal guardian
of the certified patient; (ii) a person designated by a parent or  legal
guardian;  (iii) a designated caregiver facility; or (iv) an appropriate
person approved by the office upon a sufficient showing that  no  parent
or legal guardian is appropriate or available.
  4.  No  person  may  be  a designated caregiver if the person is under
twenty-one years of age unless a  sufficient  showing  is  made  to  the
office  that  the  person  should  be permitted to serve as a designated
caregiver. The requirements for such a showing shall  be  determined  by
the executive director.
  5.  No  person may be a designated caregiver for more than five certi-
fied patients at one time.
  6. If a certified patient wishes to change or  terminate  his  or  her
designated  caregiver,  for whatever reason, the certified patient shall
notify the office as soon as  practicable.  The  office  shall  issue  a
notification to the designated caregiver that their registration card is
invalid  and  must be promptly destroyed. The newly designated caregiver
must comply with all requirements set forth in this section.
  7. If the certification so provides, the registry identification  card
shall contain any recommendation or limitation by the practitioner as to
the  form  or  forms  of  medical  cannabis  or dosage for the certified
patient.
  8. The office shall issue separate registry identification  cards  for
certified patients and designated caregivers as soon as reasonably prac-
ticable  after  receiving  a  complete  application  under this section,
unless it determines that the application  is  incomplete  or  factually
inaccurate, in which case it shall promptly notify the applicant.
  9.  If the application of a certified patient designates an individual
as a designated caregiver who is not authorized to be a designated care-
giver, that portion of the application shall be denied by the office but
that shall not affect the approval of the balance of the application.
  10. A registry identification card shall:
  (a) contain the name of the certified patient or the designated  care-
giver as the case may be;
  (b)  contain  the date of issuance and expiration date of the registry
identification card;
  (c) contain a registry identification number for the certified patient
or designated caregiver, as the case may be and a  registry  identifica-
tion number;
  (d)  contain a photograph of the individual to whom the registry iden-
tification card is being issued, which shall be obtained by  the  office
in  a  manner  specified  by  the  executive  director  in  regulations;
provided, however, that if the office  requires  certified  patients  to
submit  photographs for this purpose, there shall be a reasonable accom-
modation of certified patients who are confined to their  homes  due  to
their  medical  conditions  and  may therefore have difficulty procuring
photographs;
  (e) be a secure document as determined by the office;

S. 1509                            114                           A. 2009

  (f) plainly state any recommendation or limitation by the practitioner
as to the form or forms of medical cannabis or dosage for the  certified
patient; and
  (g) any other requirements determined by the executive director.
  11.  A certified patient or designated caregiver who has been issued a
registry identification card shall notify the office of  any  change  in
his or her name or address or, with respect to the patient, if he or she
ceases  to  have the serious condition noted on the certification within
ten  days  of  such  change.  The  certified  patient's  or   designated
caregiver's  registry  identification  card  shall be deemed invalid and
shall be promptly destroyed.
  12. If a certified patient or designated caregiver loses  his  or  her
registry  identification  card, he or she shall notify the office within
ten days of losing the card. The office shall issue a new registry iden-
tification card as soon as practicable, which may contain a new registry
identification number, to the certified patient or designated caregiver,
as the case may be.
  13. The office shall maintain a confidential list of  the  persons  to
whom it has issued registry identification cards. Individual identifying
information obtained by the office under this article shall be confiden-
tial and exempt from disclosure under article six of the public officers
law.  Notwithstanding this subdivision, the office may notify any appro-
priate  law  enforcement agency of information relating to any violation
or suspected violation of this article.
  14. The office shall verify to law enforcement personnel in an  appro-
priate case whether a registry identification card is valid.
  15.  If a certified patient or designated caregiver willfully violates
any provision of this article as determined by the  executive  director,
his  or  her  certification  and  registry  identification  card  may be
suspended or revoked. This is in addition to any other penalty that  may
apply.
  §  33. Registration as a designated caregiver facility.  1. To obtain,
amend or renew a registration as a designated  caregiver  facility,  the
facility shall file a registry application with the office. The registry
application or renewal application shall include:
  (a) the facility's full name and address;
  (b) operating certificate or license number where appropriate;
  (c)  printed  name,  title,  and  signature  of an authorized facility
representative;
  (d) a statement that the facility agrees to secure and  ensure  proper
handling of all medical cannabis products;
  (e)  an  acknowledgement  that a false statement in the application is
punishable under section 210.45 of the penal law; and
  (f) any other information that may be required by the executive direc-
tor.
  2. Prior to issuing or renewing a designated caregiver facility regis-
tration, the office may verify the information submitted by  the  appli-
cant.  The applicant shall provide, at the office's request, such infor-
mation and documentation, including any consents or authorizations  that
may be necessary for the office to verify the information.
  3.  The  office shall approve, deny or determine incomplete or inaccu-
rate an initial or renewal application within thirty days of receipt  of
the  application. If the application is approved within the 30-day peri-
od, the office shall issue a registration as soon as is reasonably prac-
ticable.

S. 1509                            115                           A. 2009

  4. An applicant shall have thirty days from the date of a notification
of an incomplete or factually inaccurate application to submit the mate-
rials required to complete, revise or substantiate  information  in  the
application.  If  the  applicant  fails to submit the required materials
within  such  thirty-day time period, the application shall be denied by
the office.
  5. Registrations issued under this section shall remain valid for  two
years from the date of issuance.
  § 34. Registered organizations.  1. A registered organization shall be
a for-profit business entity or not-for-profit corporation organized for
the  purpose  of acquiring, possessing, manufacturing, selling, deliver-
ing, transporting, distributing or  dispensing  cannabis  for  certified
medical use.
  2.  The acquiring, possession, manufacture, sale, delivery, transport-
ing, distributing or dispensing of  medical  cannabis  by  a  registered
organization  under  this  article  in  accordance with its registration
under this article or a renewal thereof shall be lawful under this chap-
ter.
  3. Each registered organization shall  contract  with  an  independent
laboratory permitted by the office to test the medical cannabis produced
by the registered organization. The executive director shall approve the
laboratory  used by the registered organization and may require that the
registered organization use a particular testing laboratory.
  4. (a) A registered organization may lawfully, in  good  faith,  sell,
deliver,  distribute or dispense medical cannabis to a certified patient
or designated caregiver upon presentation to the registered organization
of a valid registry identification card for that  certified  patient  or
designated  caregiver.   When presented with the registry identification
card, the registered organization shall provide to the certified patient
or designated caregiver a receipt, which shall state: the name, address,
and registry identification number of the registered  organization;  the
name and registry identification number of the certified patient and the
designated caregiver, if any; the date the cannabis was sold; any recom-
mendation  or  limitation by the practitioner as to the form or forms of
medical cannabis or dosage for the certified patient; and the  form  and
the quantity of medical cannabis sold. The registered organization shall
retain  a  copy  of the registry identification card and the receipt for
six years.
  (b) The proprietor of a registered organization shall file or cause to
be filed any receipt and certification information with  the  office  by
electronic  means  on  a real-time basis as the executive director shall
require by regulation. When filing receipt and certification information
electronically pursuant to this paragraph, the proprietor of the  regis-
tered   organization   shall  dispose  of  any  electronically  recorded
prescription information in such manner as the executive director  shall
by regulation require.
  5.  (a)  No  registered  organization may sell, deliver, distribute or
dispense to any certified patient or designated caregiver a quantity  of
medical cannabis larger than that individual would be allowed to possess
under this chapter.
  (b)  When dispensing medical cannabis to a certified patient or desig-
nated caregiver, the registered organization:  (i) shall not dispense an
amount greater than a sixty-day supply to a certified patient until  the
certified  patient  has  exhausted  all  but a seven day supply provided
pursuant to a previously issued certification; and (ii) shall verify the

S. 1509                            116                           A. 2009

information in subparagraph (i) of  this  paragraph  by  consulting  the
prescription monitoring program registry under this article.
  (c)  Medical  cannabis  dispensed to a certified patient or designated
caregiver by a registered organization shall conform to any  recommenda-
tion  or  limitation  by  the  practitioner  as  to the form or forms of
medical cannabis or dosage for the certified patient.
  6. When a registered  organization  sells,  delivers,  distributes  or
dispenses medical cannabis to a certified patient or designated caregiv-
er,  it  shall provide to that individual a safety insert, which will be
developed by the registered organization and approved by  the  executive
director and include, but not be limited to, information on:
  (a) methods for administering medical cannabis in individual doses,
  (b) any potential dangers stemming from the use of medical cannabis,
  (c) how to recognize what may be problematic usage of medical cannabis
and obtain appropriate services or treatment for problematic usage, and
  (d) other information as determined by the executive director.
  7.  Registered  organizations shall not be managed by or employ anyone
who has been convicted  of  any  felony  other  than  for  the  sale  or
possession  of  drugs, narcotics, or controlled substances, and provided
that this subdivision only applies to (a) managers or employees who come
into contact with or handle medical cannabis, and (b) a conviction  less
than ten years, not counting time spent in incarceration, prior to being
employed,  for which the person has not received a certificate of relief
from disabilities or a certificate of good conduct under  article  twen-
ty-three of the correction law.
  8.  Manufacturing  of  medical  cannabis  by a registered organization
shall only be done in an indoor, enclosed, secure  facility  located  in
New  York  state, which may include a greenhouse. The executive director
shall promulgate regulations establishing requirements for such  facili-
ties.
  9.  Dispensing  of medical cannabis by a registered organization shall
only be done in an indoor, enclosed, secure facility located in New York
state, which may include a  greenhouse.  The  executive  director  shall
promulgate regulations establishing requirements for such facilities.
  10. A registered organization shall determine the quality, safety, and
clinical  strength  of medical cannabis manufactured or dispensed by the
registered organization, and shall provide documentation of that  quali-
ty,  safety  and  clinical  strength  to the office and to any person or
entity to which the medical cannabis is sold or dispensed.
  11. A registered organization shall be deemed to  be  a  "health  care
provider" for the purposes of article two-D of article two of the public
health law.
  12.  Medical  cannabis  shall  be  dispensed to a certified patient or
designated caregiver in a  sealed  and  properly  labeled  package.  The
labeling  shall  contain: (a) the information required to be included in
the receipt provided to the certified patient or designated caregiver by
the registered organization; (b) the packaging date; (c) any  applicable
date  by  which the medical cannabis should be used; (d) a warning stat-
ing, "This product is for medicinal use only. Women should  not  consume
during  pregnancy  or  while  breastfeeding  except on the advice of the
certifying health care practitioner, and in the  case  of  breastfeeding
mothers,  including the infant's pediatrician. This product might impair
the ability to drive. Keep out of reach of children."; (e) the amount of
individual doses contained within; and (f) a warning  that  the  medical
cannabis  must  be  kept  in  the  original  container  in  which it was
dispensed.

S. 1509                            117                           A. 2009

  13. The executive director is authorized to make rules and regulations
restricting the advertising and marketing of medical cannabis.
  §  35.  Registering  of registered organizations.   1. Application for
initial registration. (a) An applicant for registration as a  registered
organization  under  section  thirty-four  of this article shall include
such information prepared in such manner and  detail  as  the  executive
director may require, including but not limited to:
  (i) a description of the activities in which it intends to engage as a
registered organization;
  (ii) that the applicant:
  (A) is of good moral character;
  (B)  possesses or has the right to use sufficient land, buildings, and
other premises, which shall be specified in the application, and  equip-
ment  to properly carry on the activity described in the application, or
in the alternative posts a bond of not less than two million dollars;
  (C) is able to maintain effective  security  and  control  to  prevent
diversion,  abuse,  and  other illegal conduct relating to the cannabis;
and
  (D) is able to comply with all applicable state laws  and  regulations
relating  to  the  activities  in  which  it intends to engage under the
registration;
  (iii) that the applicant has entered into a labor peace agreement with
a bona fide labor organization that is actively engaged in  representing
or attempting to represent the applicant's employees and the maintenance
of  such  a labor peace agreement shall be an ongoing material condition
of certification;
  (iv) the applicant's status as a for-profit business  entity  or  not-
for-profit corporation; and
  (v)  the  application  shall  include  the name, residence address and
title of each of the officers and directors and the name  and  residence
address  of any person or entity that is a member of the applicant. Each
such person, if an individual, or lawful representative if a legal enti-
ty, shall submit an affidavit with the application setting forth:
  (A) any position of management or ownership during the  preceding  ten
years  of  a  ten  per centum or greater interest in any other business,
located in or outside this state, manufacturing or distributing drugs;
  (B) whether such person or any such business has been convicted  of  a
felony  or  had  a  registration  or license suspended or revoked in any
administrative or judicial proceeding; and
  (C) such other information as the executive  director  may  reasonably
require.
  2.  The  applicant  shall  be under a continuing duty to report to the
office any change in facts or circumstances reflected in the application
or any newly discovered or  occurring  fact  or  circumstance  which  is
required to be included in the application.
  3.  (a) The executive director shall grant a registration or amendment
to a registration under this section if he or she is satisfied that:
  (i) the applicant will be able to maintain effective  control  against
diversion of cannabis;
  (ii)  the  applicant  will be able to comply with all applicable state
laws;
  (iii) the applicant and its officers are ready, willing  and  able  to
properly carry on the manufacturing or distributing activity for which a
registration is sought;

S. 1509                            118                           A. 2009

  (iv)  the applicant possesses or has the right to use sufficient land,
buildings and equipment to properly carry on the activity  described  in
the application;
  (v)  it  is  in the public interest that such registration be granted,
including but not limited to:
  (A) whether the number of registered organizations in an area will  be
adequate or excessive to reasonably serve the area;
  (B)  whether  the  registered  organization is a minority and/or woman
owned business enterprise or a service-disabled veteran-owned business;
  (C)  whether  the  registered  organization  provides  education   and
outreach to practitioners;
  (D)  whether  the  registered  organization  promotes the research and
development of medical cannabis and patient outreach; and
  (E) the affordability medical cannabis products offered by the  regis-
tered organization;
  (vi) the applicant and its managing officers are of good moral charac-
ter;
  (vii)  the  applicant  has entered into a labor peace agreement with a
bona fide labor organization that is actively engaged in representing or
attempting to represent the applicant's employees; and
  (viii) the applicant satisfies any other conditions as  determined  by
the executive director.
  (b)  If  the  executive  director  is not satisfied that the applicant
should be issued a registration, he or she shall notify the applicant in
writing of those factors upon which the denial is based.  Within  thirty
days  of  the  receipt  of such notification, the applicant may submit a
written request to the executive director to appeal the decision.
  (c) The fee for a registration under this section shall be  an  amount
determined  by  the  office  in  regulations;  provided, however, if the
registration is issued for a period greater than two years the fee shall
be increased, pro rata, for each additional month of validity.
  (d) Registrations issued under this section shall  be  effective  only
for the registered organization and shall specify:
  (i) the name and address of the registered organization;
  (ii)  which  activities  of a registered organization are permitted by
the registration;
  (iii) the land, buildings and facilities that  may  be  used  for  the
permitted activities of the registered organization; and
  (iv) such other information as the executive director shall reasonably
provide to assure compliance with this article.
  (e)  Upon application of a registered organization, a registration may
be amended to allow the registered organization to relocate  within  the
state  or  to add or delete permitted registered organization activities
or facilities. The fee for such amendment shall  be  two  hundred  fifty
dollars.
  4.  A  registration  issued  under this section shall be valid for two
years from the date of issue, except that in  order  to  facilitate  the
renewals  of  such  registrations,  the  executive director may upon the
initial application for a registration, issue some  registrations  which
may  remain  valid  for  a period of time greater than two years but not
exceeding an additional eleven months.
  5.  (a) An application for the  renewal  of  any  registration  issued
under  this  section  shall  be  filed with the office not more than six
months nor less than four months prior  to  the  expiration  thereof.  A
late-filed  application  for  the  renewal of a registration may, in the

S. 1509                            119                           A. 2009

discretion of the executive director, be treated as an  application  for
an initial license.
  (b)  The  application  for  renewal  shall  include  such  information
prepared in the manner and detail as the executive director may require,
including but not limited to:
  (i) any material change in the  circumstances  or  factors  listed  in
subdivision one of this section; and
  (ii)  every known charge or investigation, pending or concluded during
the period of the registration, by any  governmental  or  administrative
agency with respect to:
  (A)  each  incident  or alleged incident involving the theft, loss, or
possible diversion of cannabis manufactured or distributed by the appli-
cant; and
  (B) compliance by the applicant  with  the  laws  of  the  state  with
respect  to  any substance listed in section thirty-three hundred six of
the public health law.
  (c) An applicant for renewal shall  be  under  a  continuing  duty  to
report  to  the office any change in facts or circumstances reflected in
the application or any newly discovered or  occurring  fact  or  circum-
stance which is required to be included in the application.
  (d)  If  the  executive  director is not satisfied that the registered
organization applicant is entitled to a renewal of the registration,  he
or  she  shall within a reasonably practicable time as determined by the
executive director, serve upon the registered organization or its attor-
ney of record in person or by registered  or  certified  mail  an  order
directing  the registered organization to show cause why its application
for renewal should not be denied. The order shall specify in detail  the
respects in which the applicant has not satisfied the executive director
that the registration should be renewed.
  6.  (a) The executive director shall renew a registration unless he or
she determines and finds that:
  (i) the applicant is unlikely to  maintain  or  be  able  to  maintain
effective control against diversion;
  (ii)  the applicant is unlikely to comply with all state laws applica-
ble to the activities in which it may engage under the registration;
  (iii) it is not in the  public  interest  to  renew  the  registration
because  the  number of registered organizations in an area is excessive
to reasonably serve the area; or
  (iv) the applicant has either violated or terminated its  labor  peace
agreement.
  (b)  For  purposes  of this section, proof that a registered organiza-
tion, during the period of its  registration,  has  failed  to  maintain
effective  control  against  diversion,  violates  any provision of this
article, or has knowingly or negligently failed to comply with  applica-
ble  state laws relating to the activities in which it engages under the
registration, shall constitute grounds for  suspension,  termination  or
limitation  of  the  registered organization's registration or as deter-
mined by the executive director. The registered organization shall  also
be  under  a  continuing  duty  to  report to the authority any material
change or fact or circumstance to the information provided in the regis-
tered organization's application.
  7. The office may suspend or terminate the registration  of  a  regis-
tered  organization,  on grounds and using procedures under this article
relating to a license, to the extent consistent with this article.   The
authority  shall suspend or terminate the registration in the event that
a registered organization violates or terminates  the  applicable  labor

S. 1509                            120                           A. 2009

peace  agreement.  Conduct  in  compliance  with  this article which may
violate conflicting federal law, shall not  be  grounds  to  suspend  or
terminate a registration.
  8.  The office shall begin issuing registrations for registered organ-
izations as soon as practicable after  the  certifications  required  by
this article are given.
  9.  The  executive  director  shall  register  at least ten registered
organizations that manufacture medical cannabis with no more  than  four
dispensing  sites wholly owned and operated by such registered organiza-
tion. The executive director shall ensure that such registered organiza-
tions and dispensing sites are  geographically  distributed  across  the
state.  The executive director may register additional registered organ-
izations.
  § 36. Expedited registration of registered organizations.  1. There is
hereby established in the office an emergency  medical  cannabis  access
program,  referred  to  in  this  section  as  the "program", under this
section. The purpose of the program is to expedite the  availability  of
medical  cannabis to avoid suffering and loss of life, during the period
before full implementation of and production under this  article,  espe-
cially  in  the  case of patients whose serious condition is progressive
and degenerative or is such that delay in the patient's medical  use  of
cannabis  poses  a  serious  risk  to the patient's life or health.  The
executive director shall implement the program as expeditiously as prac-
ticable, including by emergency regulation.
  2. For the purposes of this section, and for specified limited  times,
the  executive  director  may  waive  or modify the requirements of this
article relating to registered organizations, consistent with the legis-
lative intent and purpose of this article and  this  section.  Where  an
entity  seeking  to be a registered organization under the program oper-
ates in a jurisdiction other than the state of New York, under licensure
or other governmental recognition of that jurisdiction, and the laws  of
that jurisdiction are acceptable to the executive director as consistent
with  the  legislative  intent  and  purpose  of  this  article and this
section, then the executive director may accept that licensure or recog-
nition as wholly or partially satisfying the requirements of this  arti-
cle,  for  purposes  of the registration and operation of the registered
organization under the program and this section.
  3. In considering an application  for  registration  as  a  registered
organization under this section, the executive director shall give pref-
erence to the following:
  (a)  an  applicant  that  is currently producing or providing or has a
history of producing or providing medical cannabis in another  jurisdic-
tion in full compliance with the laws of the jurisdiction;
  (b)  an applicant that is able and qualified to both produce, distrib-
ute, and dispense medical cannabis to patients expeditiously; and
  (c) an applicant that proposes a location or locations for  dispensing
by  the  registered  organization,  which ensure, to the greatest extent
possible, that certified patients have access to a registered  organiza-
tion.
  4. The executive director may make regulations under this section:
  (a)  limiting  registered organizations registered under this section;
or
  (b) limiting the allowable levels of cannabidiol and  tetrahydrocanna-
binol  that  may  be contained in medical cannabis authorized under this
article, based on therapeutics and patient safety.

S. 1509                            121                           A. 2009

  5. A registered organization under this section may apply  under  this
article to receive or renew registration.
  §  37. Reports of registered organizations.  1. The executive director
shall, by regulation,  require  each  registered  organization  to  file
reports  by  the registered organization during a particular period. The
executive director shall determine the information to  be  reported  and
the forms, time, and manner of the reporting.
  2.  The  executive  director shall, by regulation, require each regis-
tered organization to adopt  and  maintain  security,  tracking,  record
keeping,  record  retention  and  surveillance  systems, relating to all
medical cannabis at every stage of acquiring,  possession,  manufacture,
sale,  delivery, transporting, distributing, or dispensing by the regis-
tered organization, subject to regulations of the executive director.
  § 38. Evaluation; research programs; report by office.  1. The  execu-
tive  director may provide for the analysis and evaluation of the opera-
tion of this title.  The executive director may  enter  into  agreements
with one or more persons, not-for-profit corporations or other organiza-
tions,  for  the  performance of an evaluation of the implementation and
effectiveness of this title.
  2. The office may develop, seek any necessary  federal  approval  for,
and  carry  out  research  programs relating to medical use of cannabis.
Participation in any such research program shall  be  voluntary  on  the
part of practitioners, patients, and designated caregivers.
  3.  The office shall report every two years, beginning two years after
the effective date of this chapter, to the governor and the  legislature
on  the  medical  use  of cannabis under this title and make appropriate
recommendations.
  § 39. Cannabis research license.   1.  The  executive  director  shall
establish  a  cannabis  research  license  that  permits  a  licensee to
produce, process, purchase and possess cannabis for the following limit-
ed research purposes:
  (a) to test chemical potency and composition levels;
  (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
products;
  (c)  to  conduct  research on the efficacy and safety of administering
cannabis as part of medical treatment; and
  (d) to conduct genomic or agricultural research.
  2. As part of the application process for a cannabis research license,
an applicant must submit to the office a  description  of  the  research
that is intended to be conducted as well as the amount of cannabis to be
grown  or  purchased.  The  office  shall review an applicant's research
project and determine whether it meets the  requirements  of  subsection
one  of  this section. In addition, the office shall assess the applica-
tion based on the following criteria:
  (a) project quality, study design, value, and impact;
  (b) whether the applicant has the  appropriate  personnel,  expertise,
facilities  and  infrastructure,  funding,  and  human, animal, or other
approvals in place to successfully conduct the project; and
  (c) whether the amount of cannabis to be grown  or  purchased  by  the
applicant  is  consistent  with  the  project's  scope and goals. If the
office determines that the research project does not meet  the  require-
ments of subsection one of this section, the application must be denied.
  3. A cannabis research licensee may only sell cannabis grown or within
its  operation  to  other  cannabis  research  licensees. The office may
revoke a cannabis research license for violations of this subsection.

S. 1509                            122                           A. 2009

  4. A cannabis research licensee may contract with the higher education
institutions to perform research in conjunction with the university. All
research projects, entered into under this section must be  approved  by
the office and meet the requirements of subsection one of this section.
  5. In establishing a cannabis research license, the executive director
may adopt regulations on the following:
  (a) application requirements;
  (b)  cannabis research license renewal requirements, including whether
additional research projects may be added or considered;
  (c) conditions for license revocation;
  (d) security measures to ensure cannabis is not diverted  to  purposes
other than research;
  (e)  amount  of  plants,  useable  cannabis, cannabis concentrates, or
cannabis-infused products a licensee may have on its premises;
  (f) licensee reporting requirements;
  (g) conditions under which cannabis grown by licensed cannabis produc-
ers and other product types from licensed  cannabis  processors  may  be
donated to cannabis research licensees; and
  (h) any additional requirements deemed necessary by the office.
  6. A cannabis research license issued pursuant to this section must be
issued  in  the name of the applicant, specify the location at which the
cannabis researcher intends to operate, which must be within  the  state
of  New  York,  and the holder thereof may not allow any other person to
use the license.
  7. The application fee for a cannabis research license shall be deter-
mined by the executive director on an annual basis.
  8. Each cannabis research licensee shall issue an annual report to the
office. The office shall review such report and make a determination  as
to  whether  the  research project continues to meet the research quali-
fications under this section.
  § 40. Registered organizations and adult-use cannabis.  1. The  execu-
tive  director  shall  have  the  authority  to grant some or all of the
registered organizations previously registered with  the  department  of
health  and  currently  registered and in good standing with the office,
the ability to be licensed to cultivate, process,  distribute  and  sell
adult-use cannabis and cannabis products, pursuant to any fees, rules or
conditions  prescribed  by  the  executive  director  in regulation, but
exempt from the restrictions on licensed adult-use cultivators, process-
ors, and distributors from having any ownership interest in  a  licensed
adult-use retail dispensary pursuant to article four of this chapter.
  2.  The  office shall have the authority to hold a competitive bidding
process,   including   an   auction,   to   determine   the   registered
organization(s)   authorized  to  be  licensed  to  cultivate,  process,
distribute and sell adult-use cannabis and to collect the fees generated
from such auction to administer  incubators  and  low  or  zero-interest
loans  to  qualified  social equity applicants. The timing and manner in
which registered organizations may be granted such  authority  shall  be
determined by the executive director in regulation.
  3.  Alternatively, registered organizations may apply for licensure as
an adult-use cannabis  cultivator,  adult-use  cannabis  processor,  and
adult-use  cannabis  distributor, or apply for licensure as an adult-use
cannabis retail dispensary, subject to all of the restrictions and limi-
tations set forth in article four of this chapter.
  § 41. Home cultivation of medical cannabis.  1. Certified patients and
their designated caregiver(s) twenty-one years of age or older may apply
for registration with the office to grow, possess or transport  no  more

S. 1509                            123                           A. 2009

than  four cannabis plants per certified patient with no more than eight
cannabis plants per household.
  2.  All  medical  cannabis  cultivated  at  home  must  be grown in an
enclosed, locked space, not open or viewable to the public. Such  homeg-
rown  medical cannabis must only be for use by the certified patient and
may not be distributed, sold, or gifted.
  3. The executive director shall develop rules and regulations  govern-
ing this section.
  § 42. Relation to other laws.  1. The provisions of this article shall
apply,  except  that  where  a  provision of this article conflicts with
another provision of this chapter, this article shall apply.
  2. Medical cannabis shall not be deemed to be a "drug" for purposes of
article one hundred thirty-seven of the education law.
  § 43. Protections for the medical  use  of  cannabis.    1.  Certified
patients,  designated caregivers, designated caregiver facilities, prac-
titioners, registered organizations  and  the  employees  of  registered
organizations,  and cannabis researchers shall not be subject to arrest,
prosecution, or penalty in any manner, or denied any right or privilege,
including but not limited to civil penalty or disciplinary action  by  a
business  or  occupational  or  professional  licensing board or bureau,
solely for the certified medical use or manufacture of cannabis, or  for
any other action or conduct in accordance with this article.
  2. Being a certified patient shall be deemed to be having a "disabili-
ty"  under  article fifteen of the executive law, section forty-c of the
civil rights law, sections 240.00, 485.00, and 485.05 of the penal  law,
and section 200.50 of the criminal procedure law. This subdivision shall
not  bar  the  enforcement  of  a  policy  prohibiting  an employee from
performing his or her employment duties while impaired by  a  controlled
substance. This subdivision shall not require any person or entity to do
any  act  that  would  put  the  person or entity in direct violation of
federal law or cause it to lose a federal contract or funding.
  3. The fact that a person is a  certified  patient  and/or  acting  in
accordance with this article, shall not be a consideration in a proceed-
ing  pursuant  to applicable sections of the domestic relations law, the
social services law and the family court act.
  4. (a) Certification applications, certification forms, any  certified
patient  information contained within a database, and copies of registry
identification cards shall be deemed exempt from public disclosure under
sections eighty-seven and eighty-nine of the public officers law.
  (b) The name, contact information, and other information  relating  to
practitioners  registered  with  the  office under this article shall be
public information and shall be maintained by the executive director  on
the office's website accessible to the public in searchable form. Howev-
er, if a practitioner notifies the office in writing that he or she does
not  want  his or her name and other information disclosed, that practi-
tioner's name and other  information  shall  thereafter  not  be  public
information  or  maintained  on the office's website, unless the practi-
tioner cancels the request.
  § 44. Regulations.  The executive director shall make  regulations  to
implement this article.
  § 45. Suspend; terminate.  Based upon the recommendation of the execu-
tive  director and/or the superintendent of state police that there is a
risk to the public health or safety, the governor may immediately termi-
nate all licenses issued to registered organizations.
  § 46. Pricing.  1. Every sale of medical cannabis shall be at or below
the price approved by the executive director.    Every  charge  made  or

S. 1509                            124                           A. 2009

demanded  for medical cannabis not in accordance with the price approved
by the executive director, is prohibited.
  2.  The  executive  director  is hereby authorized to set the per dose
price of each form of medical cannabis sold by any registered  organiza-
tion.  In reviewing the per dose price of each form of medical cannabis,
the executive director may consider the  fixed  and  variable  costs  of
producing the form of cannabis and any other factor the executive direc-
tor,  in his or her discretion, deems relevant in reviewing the per dose
price of each form of medical cannabis.
  § 47. Severability.  If any clause, sentence,  paragraph,  section  or
part  of this article shall be adjudged by any court of competent juris-
diction to be invalid, the judgment shall not affect, impair, or invali-
date the remainder thereof, but shall be confined in  its  operation  to
the  clause,  sentence,  paragraph,  section  or  part  thereof directly
involved in the controversy  in  which  the  judgment  shall  have  been
rendered.

                                ARTICLE 4
                           ADULT-USE CANNABIS

Section 60. Licenses issued.
        61. License application.
        62. Information to be requested in applications for licenses.
        63. Fees.
        64. Selection criteria.
        65. Limitations of licensure; duration.
        66. License renewal.
        67. Amendments;  changes  in ownership and organizational struc-
              ture.
        68. Adult-use cultivator license.
        69. Adult-use processor license.
        70. Adult-use cooperative license.
        71. Adult-use distributor license.
        72. Adult-use retail dispensary license.
        73. Notification to municipalities of adult-use  retail  dispen-
              sary.
        74. On-site  consumption  license;  provisions governing on-site
              consumption licenses.
        75. Record keeping and tracking.
        76. Inspections and ongoing requirements.
        77. Adult-use cultivators, processors or distributors not to  be
              interested in retail dispensaries.
        78. Packaging and labeling of adult-use cannabis products.
        79. Laboratory testing.
        80. Provisions  governing  the  cultivation  and  processing  of
              adult-use cannabis.
        81. Provisions governing the distribution of adult-use cannabis.
        82. Provisions governing adult-use cannabis retail dispensaries.
        83. Adult-use cannabis advertising.
        84. Minority, women-owned businesses and disadvantaged  farmers;
              incubator program.
        85. Collective bargaining.
        86. Regulations.
  §  60.  Licenses  issued.    The  following kinds of licenses shall be
issued by  the  executive  director  for  the  cultivation,  processing,
distribution and sale of cannabis to cannabis consumers:

S. 1509                            125                           A. 2009

  1. Adult-use cultivator license;
  2. Adult-use processor license;
  3. Adult-use cooperative license;
  4. Adult-use distributor license;
  5. Adult-use retail dispensary license;
  6. On-site consumption license; and
  7.  Any  other type of license as prescribed by the executive director
in regulation.
  § 61. License Application.  1. Any person may apply to the office  for
a  license to cultivate, process, distribute or dispense cannabis within
this state for sale. Such application shall be in writing  and  verified
and  shall  contain  such  information as the office shall require. Such
application shall be accompanied by a check  or  draft  for  the  amount
required  by  this article for such license. If the office shall approve
the application, it shall issue a license  in  such  form  as  shall  be
determined by its rules. Such license shall contain a description of the
licensed premises and in form and in substance shall be a license to the
person therein specifically designated to cultivate, process, distribute
or dispense cannabis in the premises therein specifically licensed.
  2.  Except  as  otherwise provided in this article, a separate license
shall be required for each facility at  which  cultivation,  processing,
distribution or retail dispensing is conducted.
  3. An applicant shall not be denied a license under this article based
solely  on a conviction for a violation of article two hundred twenty or
section 240.36 of the penal law, prior to the date article  two  hundred
twenty-one of the penal law took effect, or a conviction for a violation
of  article  two hundred twenty-one of the penal law after the effective
date of this chapter.
  § 62. Information to be requested in applications for  licenses.    1.
The  office shall have the authority to prescribe the manner and form in
which an application must be submitted to the office for licensure under
this article.
  2. The executive director is authorized to adopt regulations,  includ-
ing  by  emergency rule, establishing information which must be included
on an application for licensure under this article. Such information may
include, but is not limited to:  information about the applicant's iden-
tity, including racial and ethnic diversity;  ownership  and  investment
information,  including  the corporate structure; evidence of good moral
character, including the submission of fingerprints by the applicant  to
the  division  of criminal justice services; information about the prem-
ises to be licensed; financial statements;  and  any  other  information
prescribed by in regulation.
  3.  All  license  applications shall be signed by the applicant (if an
individual), by a managing partner (if a limited liability corporation),
by an officer (if a corporation), or by all partners (if a partnership).
Each person signing such application shall verify it  or  affirm  it  as
true under the penalties of perjury.
  4. All license or permit applications shall be accompanied by a check,
draft  or  other forms of payment as the office may require or authorize
in the amount required by this article for such license or permit.
  5. If there be any change, after the filing of the application or  the
granting  of  a license, in any of the facts required to be set forth in
such application, a supplemental statement giving notice of such change,
cost and source of money involved in the change, duly verified, shall be
filed with the office within ten days after such change. Failure  to  do

S. 1509                            126                           A. 2009

so  shall,  if  willful  and  deliberate, be cause for revocation of the
license.
  6. In giving any notice, or taking any action in reference to a regis-
tered  organization  or  licensee of a licensed premises, the office may
rely upon the information furnished  in  such  application  and  in  any
supplemental  statement connected therewith, and such information may be
presumed to be correct, and shall be binding upon a registered organiza-
tions, licensee or licensed premises  as  if  correct.  All  information
required  to be furnished in such application or supplemental statements
shall be deemed material in any prosecution for perjury, any  proceeding
to  revoke,  cancel or suspend any license, and in the office's determi-
nation to approve or deny the license.
  7. The office may, in its discretion,  waive  the  submission  of  any
category  of  information  described in this section for any category of
license or permit, provided that it shall not be permitted to waive  the
requirement  for  submission  of any such category of information solely
for an individual applicant or applicants.
  § 63. Fees. 1. The office shall have the authority  to  charge  appli-
cants  for licensure under this article a non-refundable application fee
and/or to auction licenses to bidders determined by  the  office  to  be
qualified  for such licensure based on the selection criteria in section
sixty-four of this article. Such fee may be based on the type of  licen-
sure  sought, cultivation and/or production volume, or any other factors
deemed reasonable and appropriate by the office to  achieve  the  policy
and purpose of this chapter.
  2.  The office shall have the authority to charge licensees a biennial
license fee. Such fee shall be based on the amount  of  cannabis  to  be
cultivated,  processed,  distributed and/or dispensed by the licensee or
the gross annual receipts of the licensee for the previous license peri-
od, and any other factors  deemed  reasonable  and  appropriate  by  the
office.
  §  64.  Selection  criteria.   1. The executive director shall develop
regulations for determining whether or not an applicant should be grant-
ed the privilege of an adult-use cannabis license,  based  on,  but  not
limited to, the following criteria:
  (a)  the  applicant will be able to maintain effective control against
the illegal diversion of cannabis;
  (b) the applicant will be able to comply  with  all  applicable  state
laws and regulations;
  (c)  the  applicant  and  its officers are ready, willing, and able to
properly carry on the activities for which a license is sought;
  (d) the applicant possesses or has the right to use  sufficient  land,
buildings,  and equipment to properly carry on the activity described in
the application;
  (e) it is in the public interest that such license be granted,  taking
into consideration, but not limited to, the following criteria:
  (i)  that  it  is a privilege, and not a right, to cultivate, process,
distribute, and sell cannabis;
  (ii) the number, classes, and character of other licenses in proximity
to the location and in the particular municipality or subdivision there-
of;
  (iii) evidence that all  necessary  licenses  and  permits  have  been
obtained from the state and all other governing bodies;
  (iv)  effect  of  the  grant of the license on pedestrian or vehicular
traffic, and parking, in proximity to the location;

S. 1509                            127                           A. 2009

  (v) the existing noise level at the location and any increase in noise
level that would be generated by the proposed premises;
  (vi)  the  history  of violations under the alcoholic beverage control
law or the cannabis law at the location,  as  well  as  any  pattern  of
violations under the alcoholic beverage control law or the cannabis law,
and reported criminal activity at the proposed premises;
  (vii) the effect on the production, price and availability of cannabis
and cannabis products; and
  (viii) any other factors specified by law or regulation that are rele-
vant  to  determine that granting a license would promote public conven-
ience and advantage and the public interest of the community;
  (f) the applicant and its managing officers are of good moral  charac-
ter  and  do  not  have  an  ownership  or  controlling interest in more
licenses or permits than allowed by this chapter;
  (g) the applicant has entered into a  labor  peace  agreement  with  a
bona-fide labor organization that is actively engaged in representing or
attempting  to represent the applicant's employees. In evaluating appli-
cations from entities with twenty-five or  more  employees,  the  office
shall  give  priority  to  applicants  that  are a party to a collective
bargaining agreement with a bona-fide labor organization in New York  or
in  another state, or uses union labor to construct its licensed facili-
ty;
  (h) the applicant will contribute to communities and people dispropor-
tionately harmed by cannabis law enforcement;
  (i) if the application is for an  adult-use  cultivator  license,  the
environmental impact of the facility to be licensed; and
  (j)  the applicant satisfies any other conditions as determined by the
executive director.
  2. If the executive director  is  not  satisfied  that  the  applicant
should  be  issued  a  license,  the executive director shall notify the
applicant in writing of the specific reason or reasons for denial.
  3. The executive director shall have authority and sole discretion  to
determine the number of licenses issued pursuant to this article.
  §  65.  Limitations of licensure; duration.  1. No license of any kind
may be issued to a person under the age of twenty-one years,  nor  shall
any licensee employ anyone under the age of twenty-one years.
  2.  No  person shall sell, deliver, or give away or cause or permit or
procure to be sold, delivered or given away any cannabis to any  person,
actually  or  apparently, under the age of twenty-one years, any visibly
intoxicated person, or any habitually intoxicated  person  known  to  be
such  by  the  person  authorized  to  manufacture, traffic, or sell any
cannabis.
  3. The office shall have the authority  to  limit,  by  canopy,  plant
count,  square footage or other means, the amount of cannabis allowed to
be grown, processed, distributed or sold by a licensee.
  4. All licenses under this article shall expire two  years  after  the
date of issue.
  § 66. License renewal.  1. Each license, issued pursuant to this arti-
cle,  may  be renewed upon application therefore by the licensee and the
payment of the fee for such license as prescribed by  this  article.  In
the  case of applications for renewals, the office may dispense with the
requirements of such statements as it deems unnecessary in view of those
contained in the application made for the original license, but  in  any
event  the  submission  of photographs of the licensed premises shall be
dispensed with, provided the applicant for such  renewal  shall  file  a
statement  with  the  office to the effect that there has been no alter-

S. 1509                            128                           A. 2009

ation of such premises since the original license was issued. The office
may make such rules as it deems necessary, not  inconsistent  with  this
chapter, regarding applications for renewals of licenses and permits and
the time for making the same.
  2.  Each  applicant  must  submit  to  the office documentation of the
racial, ethnic, and gender diversity of the  applicant's  employees  and
owners  prior  to  a  license being renewed. In addition, the office may
create a social responsibility framework agreement and make  the  adher-
ence to such agreement a conditional requirement of license renewal.
  3.  The  office  shall provide an application for renewal of a license
issued under this article not less than ninety days prior to the expira-
tion of the current license.
  4. The office may only issue a renewal license  upon  receipt  of  the
prescribed  renewal  application  and renewal fee from a licensee if, in
addition to the criteria in this section, the licensee's license is  not
under suspension and has not been revoked.
  §  67.  Amendments; changes in ownership and organizational structure.
1. Licenses issued pursuant to this article shall specify:
  (a) the name and address of the licensee;
  (b) the activities permitted by the license;
  (c) the land, buildings and  facilities  that  may  be  used  for  the
licensed activities of the licensee;
  (d) a unique license number issued by the office to the licensee; and
  (e) such other information as the executive director shall deem neces-
sary to assure compliance with this chapter.
  2.  Upon  application  of  a  licensee to the office, a license may be
amended to allow the licensee to relocate within the state,  to  add  or
delete  licensed  activities or facilities, or to amend the ownership or
organizational structure of the entity that is the licensee. The fee for
such amendment shall be two hundred fifty dollars.
  3. A license shall become void by a change in  ownership,  substantial
corporate change or location without prior written approval of the exec-
utive director. The executive director may promulgate regulations allow-
ing for certain types of changes in ownership without the need for prior
written approval.
  4.  For purposes of this section, "substantial corporate change" shall
mean:
  (a) for a corporation, a change of eighty percent or more of the offi-
cers and/or directors, or a transfer of eighty percent or more of  stock
of such corporation, or an existing stockholder obtaining eighty percent
or more of the stock of such corporation; or
  (b)  for  a  limited  liability company, a change of eighty percent or
more of the managing members of the company, or  a  transfer  of  eighty
percent  or  more  of ownership interest in said company, or an existing
member obtaining a cumulative of eighty percent or more of the ownership
interest in said company.
  § 68. Adult-use cultivator license.    1.  An  adult-use  cultivator's
license  shall  authorize  the  acquisition, possession, cultivation and
sale of cannabis from the licensed premises of the adult-use  cultivator
by  such  licensee to duly licensed processors in this state. The execu-
tive director may  establish  regulations  allowing  licensed  adult-use
cultivators  to  perform certain types of minimal processing without the
need for an adult-use processor license.
  2. For purposes of this section, cultivation shall include, but not be
limited to, the planting, growing, cloning, harvesting, drying,  curing,
grading and trimming of cannabis.

S. 1509                            129                           A. 2009

  3.  A  person holding an adult-use cultivator's license may apply for,
and obtain, one processor's license and one distributor's license.
  4.  A  person  holding  an adult-use cultivator's license may not also
hold a retail dispensary license pursuant to this article and no  adult-
use  cannabis  cultivator  shall  have  a  direct  or indirect interest,
including by stock ownership, interlocking directors, mortgage or  lien,
personal  or real property, or any other means, in any premises licensed
as an adult-use cannabis retail dispensary or in any  business  licensed
as an adult-use cannabis retail dispensary pursuant to this article.
  5.  A  person holding an adult-use cultivator's license may not hold a
license to distribute cannabis under this article  unless  the  licensed
cultivator is also licensed as a processor under this article.
  6.  No  person  may have a direct or indirect financial or controlling
interest in more than one adult-use cultivator license  issued  pursuant
to this chapter.
  7. The executive director shall have the authority to issue microbusi-
ness cultivator licenses, allowing microbusiness licensees to cultivate,
process,  and  distribute adult-use cannabis direct to licensed cannabis
retailers, under a single license.  The executive director shall  estab-
lish through regulation a production limit of total cannabis cultivated,
processed  and/or  distributed  annually  for  microbusiness  cultivator
licenses.
  § 69. Adult-use processor license.   1. A  processor's  license  shall
authorize  the  acquisition, possession, processing and sale of cannabis
from the licensed premises of the adult-use cultivator by such  licensee
to duly licensed distributors.
  2.  For purposes of this section, processing shall include, but not be
limited to, blending, extracting, infusing, packaging, labeling,  brand-
ing  and  otherwise  making  or  preparing cannabis products. Processing
shall not include the cultivation of cannabis.
  3. No processor shall be engaged in any other business on the premises
to be licensed; except that nothing  contained  in  this  chapter  shall
prevent a cannabis cultivator, cannabis processor, and cannabis distrib-
utor  from  operating on the same premises and from a person holding all
three licenses.
  4. No cannabis processor licensee may hold more  than  three  cannabis
processor licenses.
  5.  No  adult-use  cannabis  processor shall have a direct or indirect
interest, including by stock ownership, interlocking directors, mortgage
or lien, personal or real property, or any other means, in any  premises
licensed  as  an adult-use cannabis retail dispensary or in any business
licensed as an adult-use cannabis retail  dispensary  pursuant  to  this
article.
  §  70.  Adult-use cooperative license.  1. A cooperative license shall
authorize the acquisition, possession, cultivation, processing and  sale
from the licensed premises of the adult-use cooperative by such licensee
to  duly  licensed  distributors  and/or  retail  dispensaries;  but not
directly to cannabis consumers.
  2. To be licensed as an adult-use cooperative, the cooperative must:
  (i) be comprised of residents of the state of New York  as  a  limited
liability company or limited liability partnership under the laws of the
state,  or an appropriate business structure as determined by the execu-
tive director;
  (ii) at least one member of the cooperative must have filed a  Federal
Schedule F (Form 1040) for three of the past five years; and

S. 1509                            130                           A. 2009

  (iii)  the cooperative must operate according to the seven cooperative
principles published by the International Cooperative Alliance in  nine-
teen hundred ninety-five.
  3.  No person shall be a member of more than one adult-use cooperative
licensed pursuant to this section.
  4. No person or member of an adult-use cooperative license may have  a
direct  or  indirect  financial  or  controlling  interest  in any other
adult-use cannabis license issued pursuant to this chapter.
  5. No adult-use cannabis cooperative shall have a direct  or  indirect
interest, including by stock ownership, interlocking directors, mortgage
or  lien, personal or real property, or any other means, in any premises
licensed as an adult-use cannabis retail dispensary or in  any  business
licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
article.
  6. The executive director shall promulgate regulations governing coop-
erative licenses, including, but not limited to,  the  establishment  of
canopy  limits on the size and scope of cooperative licensees, and other
measures designed to incentivize the use and licensure of cooperatives.
  § 71. Adult-use distributor license.  1. A distributor's license shall
authorize the acquisition, possession, distribution and sale of cannabis
from the licensed premises of a licensed adult-use processor, microbusi-
ness cultivator, or registered organization authorized to sell adult-use
cannabis, to duly licensed retail dispensaries.
  2. No distributor shall have a direct or indirect economic interest in
any adult-use retail dispensary licensed pursuant to this article, or in
any registered organization registered pursuant to article three of this
chapter. This restriction shall not prohibit a  registered  organization
authorized pursuant to section forty of this chapter, from being granted
licensure by the office to distribute adult-use cannabis products culti-
vated  and  processed  by  the registered organization to the registered
organization's own licensed adult-use retail dispensaries.
  3. Nothing in subdivision two of this section shall prevent a distrib-
utor from charging an appropriate fee for the distribution of  cannabis,
including based on the volume of cannabis distributed.
  §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
license shall authorize the acquisition, possession and sale of cannabis
from the licensed premises of the retail dispensary by such licensee  to
cannabis consumers.
  2.  No  person  may have a direct or indirect financial or controlling
interest in more than three retail dispensary licenses  issued  pursuant
to this chapter. This restriction shall not prohibit a registered organ-
ization,  authorized  pursuant  to  section  forty of this chapter, from
being granted licensure by the office  to  sell  adult-use  cannabis  at
locations previously registered by the department of health and in oper-
ation  as  of  April first, two thousand nineteen; subject to any condi-
tions, limitations or restrictions established by the office.
  3. No person holding a retail dispensary  license  may  also  hold  an
adult-use  cultivation, processor, microbusiness cultivator, cooperative
or distributor license pursuant to this article.
  4. No retail license shall be granted for  any  premises,  unless  the
applicant  shall be the owner thereof, or shall be in possession of said
premises under a lease, management agreement or other  agreement  giving
the applicant control over the premises, in writing, for a term not less
than the license period.
  5.  No  premises  shall  be licensed to sell cannabis products, unless
said premises shall be located in a store,  the  principal  entrance  to

S. 1509                            131                           A. 2009

which  shall  be from the street level and located on a public thorough-
fare in premises which may be occupied, operated or conducted for  busi-
ness,  trade  or  industry  or  on an arcade or sub-surface thoroughfare
leading to a railroad terminal.
  6.  No cannabis retail license shall be granted for any premises where
a licensee would not be allowed to sell at  retail  for  consumption  of
alcohol  off  the premises based on its proximity to a building occupied
exclusively as a school, church, synagogue or  other  place  of  worship
pursuant  to  the  provisions of section one hundred five of the alcohol
beverage control law.
  § 73. Notification to municipalities of adult-use  retail  dispensary.
1.  Not  less  than  thirty  days nor more than two hundred seventy days
before filing an application for  licensure  as  an  adult-use  cannabis
retail  dispensary,  an applicant shall notify the municipality in which
the premises is located of such  applicant's  intent  to  file  such  an
application.
  2.  Such  notification shall be made to the clerk of the village, town
or city, as the case may  be,  wherein  the  premises  is  located.  For
purposes of this section:
  (a) notification need only be given to the clerk of a village when the
premises  is located within the boundaries of the village, town or city;
and
  (b) in the city of New York, the community board established  pursuant
to section twenty-eight hundred of the New York city charter with juris-
diction  over the area in which the premises is located shall be consid-
ered the appropriate public body to which notification shall be given.
  3. Such notification shall be made in such form as shall be prescribed
by the rules of the office.
  4. A municipality may express an opinion for or against  the  granting
of such application. Any such opinion shall be deemed part of the record
upon  which  the  office  makes  its  determination to grant or deny the
application.
  5. Such notification shall be made  by:  (a)  certified  mail,  return
receipt requested; (b) overnight delivery service with proof of mailing;
or  (c)  personal  service  upon  the  offices of the clerk or community
board.
  6. The office shall require such notification to be on a  standardized
form  that  can  be obtained on the internet or from the office and such
notification to include:
  (a) the trade name or "doing business as" name, if any, of the  estab-
lishment;
  (b) the full name of the applicant;
  (c)  the  street  address  of  the  establishment, including the floor
location or room number, if applicable;
  (d) the mailing address of the establishment, if  different  than  the
street address;
  (e)  the  name, address and telephone number of the attorney or repre-
sentative of the applicant, if any;
  (f) a statement indicating whether the application is for:
  (i) a new establishment;
  (ii) a transfer of an existing licensed business;
  (iii) a renewal of an existing license; or
  (iv) an alteration of an existing licensed premises;
  (g) if the establishment is a transfer or  previously  licensed  prem-
ises,  the name of the old establishment and such establishment's regis-
tration or license number;

S. 1509                            132                           A. 2009

  (h) in the case of a renewal or alteration application, the  registra-
tion or license number of the applicant; and
  (i) the type of license.
  §  74.  On-site  consumption  license;  provisions  governing  on-site
consumption licenses.  1. No licensed adult-use cannabis retail  dispen-
sary  shall  be  granted  a cannabis on-site consumption license for any
premises, unless the applicant shall be the owner thereof, or  shall  be
in possession of said premises under a lease, in writing, for a term not
less  than  the  license  period  except, however, that such license may
thereafter be renewed without the requirement of a lease as provided  in
this  section.  This subdivision shall not apply to premises leased from
government agencies, as defined  under  subdivision  twenty  of  section
three  of this chapter; provided, however, that the appropriate adminis-
trator of such government agency provides some form of written  documen-
tation  regarding  the  terms  of occupancy under which the applicant is
leasing said premises from the government agency for presentation to the
office at the time of the license application. Such documentation  shall
include  the terms of occupancy between the applicant and the government
agency, including, but not limited to, any short-term leasing agreements
or written occupancy agreements.
  2. No adult-use cannabis retail dispensary shall be granted a cannabis
on-site consumption license for any premises where a license  would  not
be  allowed to sell at retail for consumption of alcohol on the premises
based on its proximity to a building occupied exclusively as  a  school,
church,  synagogue  or other place of worship pursuant to the provisions
of section one hundred five of the alcoholic beverage control law.
  3. The office may consider any or all of the following in  determining
whether public convenience and advantage and the public interest will be
promoted  by  the granting of a license for an on-site cannabis consump-
tion at a particular location:
  (a) that it is a privilege, and not a right,  to  cultivate,  process,
distribute, and sell cannabis;
  (b)  the number, classes, and character of other licenses in proximity
to the location and in the particular municipality or subdivision there-
of;
  (c) evidence  that  all  necessary  licenses  and  permits  have  been
obtained from the state and all other governing bodies;
  (d)  effect  of  the  grant  of the license on pedestrian or vehicular
traffic, and parking, in proximity to the location;
  (e) the existing noise level at the location and any increase in noise
level that would be generated by the proposed premises;
  (f) the history of violations under the alcoholic beverage control law
or this chapter at the location, as well as any  pattern  of  violations
under  the  alcoholic beverage control law or this chapter, and reported
criminal activity at the proposed premises; and
  (g) any other factors specified by law or regulation that are relevant
to determine that granting a license would  promote  public  convenience
and advantage and the public interest of the community;
  4.  If  the  office  shall  disapprove  an  application for an on-site
consumption license, it shall state and file in its offices the  reasons
therefor  and  shall  notify  the  applicant thereof. Such applicant may
thereupon apply to the office for a review of such action in a manner to
be prescribed by the rules of the office.
  5. No adult-use cannabis on-site consumption licensee shall keep  upon
the  licensed  premises  any  adult-use  cannabis  products except those
purchased from  a  licensed  distributor,  microbusiness  cultivator  or

S. 1509                            133                           A. 2009

registered  organization authorized to sell adult-use cannabis, and only
in containers approved by the office. Such containers shall have affixed
thereto such labels as may be required by the rules of the office.    No
cannabis  retail  licensee  for on-site consumption shall reuse, refill,
tamper with, adulterate, dilute or fortify the contents of any container
of cannabis products as received from the manufacturer or distributor.
  6. No cannabis on-site consumption licensee  shall  sell,  deliver  or
give  away, or cause or permit or procure to be sold, delivered or given
away any cannabis for consumption  on  the  premises  where  sold  in  a
container or package containing more than one gram of cannabis.
  7.  Except  where  a  permit  to do so is obtained pursuant to section
405.10 of the penal law, no cannabis on-site consumption licensee  shall
suffer,  permit,  or promote an event on its premises wherein any person
shall use, explode, or cause to explode, any fireworks  or  other  pyro-
technics  in  a building as defined in paragraph e of subdivision one of
section 405.10 of the penal law, that is  covered  by  such  license  or
possess  such fireworks or pyrotechnics for such purpose. In addition to
any other penalty provided by law, a violation of this subdivision shall
constitute an adequate ground for instituting a proceeding  to  suspend,
cancel,  or  revoke  the  license of the violator in accordance with the
applicable procedures specified in this chapter;  provided  however,  if
more than one licensee is participating in a single event, upon approval
by the office, only one licensee must obtain such permit.
  8.  No  premises  licensed  to  sell  adult-use  cannabis  for on-site
consumption under this chapter shall be permitted to have any opening or
means of entrance or  passageway  for  persons  or  things  between  the
licensed premises and any other room or place in the building containing
the  licensed  premises,  or  any adjoining or abutting premises, unless
ingress and egress is restricted by an employee, agent of the  licensee,
or  other  method  approved  by  the office of controlling access to the
facility.
  9. Each cannabis on-site consumption licensee shall keep and  maintain
upon the licensed premises, adequate records of all transactions involv-
ing the business transacted by such licensee which shall show the amount
of  cannabis products, in an applicable metric measurement, purchased by
such licensee together with the names, license  numbers  and  places  of
business  of  the  persons from whom the same were purchased, the amount
involved in such purchases, as well as the sales  of  cannabis  products
made  by  such  licensee.  The office is hereby authorized to promulgate
rules and regulations permitting an on-site licensee  operating  two  or
more  premises separately licensed to sell cannabis products for on-site
consumption to inaugurate or retain in this state methods  or  practices
of  centralized  accounting,  bookkeeping,  control  records, reporting,
billing, invoicing or payment respecting purchases, sales or  deliveries
of cannabis products, or methods and practices of centralized receipt or
storage  of  cannabis  products within this state without segregation or
earmarking for any such  separately  licensed  premises,  wherever  such
methods  and  practices  assure  the  availability,  at  such licensee's
central or main office in this state, of data reasonably needed for  the
enforcement  of  this  chapter.  Such  records  shall  be  available for
inspection by any authorized representative of the office.
  10. All retail licensed premises shall be subject to inspection by any
peace officer, acting pursuant to his or her special duties,  or  police
officer and by the duly authorized representatives of the office, during
the  hours  when the said premises are open for the transaction of busi-
ness.

S. 1509                            134                           A. 2009

  11. A cannabis on-site consumption licensee shall not provide cannabis
products to any person under the age of twenty-one or to anyone  visibly
intoxicated.
  § 75. Record keeping and tracking. 1. The executive director shall, by
regulation,  require each licensee pursuant to this article to adopt and
maintain  security,  tracking,  record  keeping,  record  retention  and
surveillance systems, relating to all cannabis at every stage of acquir-
ing,  possession, manufacture, sale, delivery, transporting, or distrib-
uting by the licensee, subject to regulations of the executive director.
  2. Every licensee shall keep and maintain upon the  licensed  premises
adequate  books  and  records of all transactions involving the licensee
and sale of its products, which shall include, but is  not  limited  to,
all information required by any rules promulgated by the office.
  3. Each sale shall be recorded separately on a numbered invoice, which
shall  have  printed  thereon  the number, the name of the licensee, the
address of the  licensed  premises,  and  the  current  license  number.
Licensed  producers  shall  deliver  to  the licensed distributor a true
duplicate invoice stating the name and address  of  the  purchaser,  the
quantity  purchased,  description  and  the  price of the product, and a
true, accurate and complete statement of the  terms  and  conditions  on
which such sale is made.
  4. Such books, records and invoices shall be kept for a period of five
years  and shall be available for inspection by any authorized represen-
tative of the office.
  5. Each adult-use cannabis retail dispensary and  on-site  consumption
licensee  shall  keep  and maintain upon the licensed premises, adequate
records of all transactions involving the business  transacted  by  such
licensee  which  shall show the amount of cannabis, in weight, purchased
by such licensee together with the names, license numbers and places  of
business  of  the  persons from whom the same were purchased, the amount
involved in such purchases, as well as the sales  of  cannabis  made  by
such licensee.
  §  76. Inspections and ongoing requirements. All licensed or permitted
premises, regardless of the  type  of  premises,  shall  be  subject  to
inspection  by the office, by the duly authorized representatives of the
office, by any peace officer acting  pursuant  to  his  or  her  special
duties,  or by a police officer, during the hours when the said premises
are open for the transaction of business. The office shall make  reason-
able  accommodations  so  that  ordinary business is not interrupted and
safety and security procedures are not compromised by the inspection.  A
person who holds a license or permit must make himself or herself, or an
agent  thereof, available and present for any inspection required by the
office.  Such inspection may include, but is not  limited  to,  ensuring
compliance by the licensee or permittee with all other applicable build-
ing codes, fire, health, safety, and governmental regulations, including
at the municipal, county, and state level.
  §  77.  Adult-use  cultivators,  processors  or distributors not to be
interested in retail dispensaries.  1. It shall be unlawful for a culti-
vator, processor, cooperative or distributor licensed under this article
to:
  (a) be interested directly or indirectly in  any  premises  where  any
cannabis product is sold at retail; or in any business devoted wholly or
partially  to the sale of any cannabis product at retail by stock owner-
ship, interlocking directors, mortgage or lien or any personal  or  real
property, or by any other means.

S. 1509                            135                           A. 2009

  (b)  make,  or cause to be made, any loan to any person engaged in the
manufacture or sale of any cannabis product at wholesale or retail.
  (c)  make  any  gift  or  render  any  service of any kind whatsoever,
directly or indirectly, to any person licensed under this chapter  which
in  the  judgment  of  the office may tend to influence such licensee to
purchase the product of such cultivator or processor or distributor.
  (d) enter into any contract with  any  retail  licensee  whereby  such
licensee  agrees  to confine his sales to cannabis products manufactured
or sold by one or more such cultivator or  processors  or  distributors.
Any  such contract shall be void and subject the licenses of all parties
concerned to revocation for cause.
  2. The provisions of this section  shall  not  prohibit  a  registered
organization  authorized pursuant to section forty of this chapter, from
cultivating, processing, distributing  and  selling  adult-use  cannabis
under  this  article,  at  facilities  wholly owned and operated by such
registered organization,  subject  to  any  conditions,  limitations  or
restrictions established by the office.
  3.  The office shall have the power to create rules and regulations in
regard to this section.
  § 78. Packaging and labeling of adult-use cannabis  products.  1.  The
office  is hereby authorized to promulgate rules and regulations govern-
ing the packaging and labeling of cannabis products, sold  or  possessed
for sale in New York state.
  2.  Such  regulations  shall include, but not be limited to, requiring
that:
  (a) packaging  meets  requirements  similar  to  the  federal  "poison
prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
  (b)  all cannabis-infused products shall have a separate packaging for
each serving;
  (c) prior to delivery or sale at a  retailer,  cannabis  and  cannabis
products  shall  be  labeled and placed in a resealable, child-resistant
package; and
  (d) packages and labels shall not be made to be attractive to minors.
  3. Such regulations shall include requiring labels  warning  consumers
of  any  potential impact on human health resulting from the consumption
of cannabis products that shall be affixed to those products when  sold,
if such labels are deemed warranted by the office.
  4.  Such  rules and regulations shall establish methods and procedures
for determining serving  sizes  for  cannabis-infused  products,  active
cannabis  concentration  per  serving  size,  and number of servings per
container. Such regulations shall also require a nutritional fact  panel
that incorporates data regarding serving sizes and potency thereof.
  5.  The packaging, sale, or possession by any licensee of any cannabis
product not labeled or offered in conformity with rules and  regulations
promulgated  in  accordance  with  this section shall be grounds for the
imposition of a fine, and/or the suspension, revocation or  cancellation
of a license.
  §  79.  Laboratory  testing.  1. Every processor of adult-use cannabis
shall contract with an  independent  laboratory  permitted  pursuant  to
section  one  hundred  twenty-nine of this chapter, to test the cannabis
products it produces pursuant to rules and regulations prescribed by the
office.  The executive director may assign an approved testing laborato-
ry, which the processor of adult-use cannabis must use.
  2. Adult-use cannabis processors shall make  laboratory  test  reports
available  to  licensed  distributors  and  retail  dispensaries for all
cannabis products manufactured by the processor.

S. 1509                            136                           A. 2009

  3. Licensed retail dispensaries shall maintain accurate  documentation
of laboratory test reports for each cannabis product offered for sale to
cannabis  consumers. Such documentation shall be made publicly available
by the licensed retail dispensary.
  4.  Onsite  laboratory  testing  by licensees is permissible; however,
such testing shall not be certified by the office and  does  not  exempt
the  licensee  from  the  requirements of quality assurance testing at a
testing laboratory pursuant to this section.
  5. An owner of a cannabis laboratory testing permit shall not  hold  a
license  in  any other category within this article and shall not own or
have ownership interest in a registered organization registered pursuant
to article three of this chapter.
  6. The office shall have the authority to require any  licensee  under
this  article  to  submit  cannabis  or cannabis products to one or more
independent laboratories for testing.
  § 80. Provisions governing the cultivation and processing of adult-use
cannabis. 1. Cultivation of cannabis must not be visible from  a  public
place by normal unaided vision.
  2.  No  cultivator  or  processor of adult-use cannabis shall sell, or
agree to sell or deliver in the state any cannabis products, as the case
may be, except in sealed containers containing quantities in  accordance
with  size  standards  pursuant  to  rules  adopted  by the office. Such
containers shall have affixed thereto such labels as may be required  by
the rules of the office.
  3.  No  cultivator or processor of adult-use cannabis shall furnish or
cause to be furnished to any licensee, any exterior  or  interior  sign,
printed,  painted,  electric  or  otherwise, except as authorized by the
office. The office may make such rules as it deems  necessary  to  carry
out the purpose and intent of this subdivision.
  4.  Cultivators  of  adult-use cannabis shall only use pesticides that
are registered by the department of environmental conservation  or  that
specifically  meet  the  United  States  environmental protection agency
registration exemption criteria for minimum risk pesticides, and only in
compliance with regulations, standards  and  guidelines  issued  by  the
department of environmental conservation.
  5.  No  cultivator  or processor of adult-use cannabis shall transport
cannabis products in any vehicle owned and operated or hired  and  oper-
ated  by such cultivator or processor, unless there shall be attached to
or inscribed upon both sides of such vehicle a sign,  showing  the  name
and  address  of  the licensee, together with the following inscription:
"New York State Cannabis Cultivator (or Processor) License No. _____" in
uniform letters not less than three and one-half inches in height.    In
lieu  of such sign a cultivator or processor may have in the cab of such
vehicle a photostatic copy of its current license issued by the  office,
and such copy duly authenticated by the office.
  6.  No cultivator or processor of adult-use cannabis shall deliver any
cannabis products, except in vehicles owned and operated by such  culti-
vator,  processor, or hired and operated by such cultivator or processor
from a trucking or transportation company registered  with  the  office,
and  shall only make deliveries at the licensed premises of the purchas-
er.
  7. No cultivator or processor  of  adult-use  cannabis,  including  an
adult-use  cannabis  cooperative  or microbusiness cultivator, may offer
any incentive, payment or other benefit to a  licensed  cannabis  retail
dispensary in return for carrying the cultivator, processor, cooperative
or microbusiness cultivator's products, or preferential shelf placement.

S. 1509                            137                           A. 2009

  8.  All  cannabis  products shall be processed in accordance with good
manufacturing processes, pursuant to Part 111 of Title 21 of the Code of
Federal Regulations, as may be modified by  the  executive  director  in
regulation.
  9. No processor of adult-use cannabis shall produce any product which,
in  the  discretion of the office, is designed to appeal to anyone under
the age of twenty-one years.
  10. The use or integration of alcohol or nicotine in cannabis products
is strictly prohibited.
  § 81. Provisions governing the distribution of adult-use cannabis.  1.
No distributor shall sell, or agree to  sell  or  deliver  any  cannabis
products, as the case may be, in any container, except in a sealed pack-
age.  Such  containers  shall have affixed thereto such labels as may be
required by the rules of the office.
  2. No distributor shall deliver any cannabis products, except in vehi-
cles owned and operated by such distributor, or hired  and  operated  by
such  distributor  from  a trucking or transportation company registered
with the office, and shall only make deliveries at the licensed premises
of the purchaser.
  3. Each distributor shall keep and maintain upon  the  licensed  prem-
ises, adequate books and records of all transactions involving the busi-
ness  transacted  by  such  distributor,  which shall show the amount of
cannabis products purchased by such distributor together with the names,
license numbers and places of business of the persons from whom the same
was purchased and the amount involved in such purchases, as well as  the
amount  of  cannabis products sold by such distributor together with the
names, addresses, and license numbers  of  such  purchasers.  Each  sale
shall  be  recorded  separately  on a numbered invoice, which shall have
printed thereon the number, the name of the licensee, the address of the
licensed premises, and the  current  license  number.  Such  distributor
shall deliver to the purchaser a true duplicate invoice stating the name
and  address  of  the  purchaser,  the  quantity  of  cannabis products,
description by brands and the price of such  cannabis  products,  and  a
true,  accurate  and  complete  statement of the terms and conditions on
which such sale is made. Such books, records and invoices shall be  kept
for  a period of five years and shall be available for inspection by any
authorized representative of the office.
  4. No distributor shall furnish or cause to be furnished to any licen-
see, any exterior or interior sign, printed, painted, electric or other-
wise, unless authorized by the office.
  5. No distributor shall  provide  any  discount,  rebate  or  customer
loyalty program to any licensed retailer, except as otherwise allowed by
the office.
  6.  The  executive  director  is  authorized to promulgate regulations
establishing a maximum margin for which a  distributor  may  mark  up  a
cannabis product for sale to a retail dispensary. Any adult-use cannabis
product  sold  by a distributor for more than the maximum markup allowed
in regulation, shall be unlawful.
  7. Each distributor shall keep and maintain upon  the  licensed  prem-
ises, adequate books and records to demonstrate the distributor's actual
cost of doing business, using accounting standards and methods regularly
employed in the determination of costs for the purpose of federal income
tax  reporting,  for  the  total  operation of the licensee. Such books,
records and invoices shall be kept for a period of five years and  shall
be  available  for  inspection  by  any authorized representative of the

S. 1509                            138                           A. 2009

office for use in determining the maximum markup allowed  in  regulation
pursuant to subdivision six of this section.
  § 82. Provisions governing adult-use cannabis retail dispensaries.  1.
No  cannabis  retail licensee shall sell, deliver, or give away or cause
or permit or procure to be sold, delivered or given away any cannabis to
any person, actually or apparently, under the age of  twenty-one  years,
any  visibly  intoxicated  person,  or any habitually intoxicated person
known to be such by the person authorized to sell, deliver, or give away
any cannabis.
  2. No cannabis retail licensee shall  sell  more  than  one  ounce  of
cannabis  per  cannabis  consumer  per  day; nor more than five grams of
cannabis concentrate per cannabis consumer per day.
  3. No cannabis retail licensee shall  sell  alcoholic  beverages,  nor
have  or possess a license or permit to sell alcoholic beverages, on the
same premises where cannabis products are sold.
  4. No sign of any kind printed, painted or electric,  advertising  any
brand  shall  be permitted on the exterior or interior of such premises,
except by permission of the office.
  5. No cannabis retail licensee shall  sell  or  deliver  any  cannabis
products  to  any  person with knowledge of, or with reasonable cause to
believe, that the person to whom such cannabis products are being  sold,
has  acquired  the  same  for the purpose of peddling them from place to
place, or of selling or giving them away in violation of the  provisions
of  this  chapter  or  in  violation of the rules and regulations of the
office.
  6. All premises licensed  under  this  section  shall  be  subject  to
inspection by any peace officer described in subdivision four of section
2.10 of the criminal procedure law acting pursuant to his or her special
duties,  or  police officer or any duly authorized representative of the
office, during the hours when the said premises are open for the  trans-
action of business.
  7.  No cannabis retail licensee shall be interested, directly or indi-
rectly, in any cultivator, processor or distributor licensed pursuant to
this article, by stock ownership, interlocking  directors,  mortgage  or
lien  on  any personal or real property or by any other means. Any lien,
mortgage or other interest or estate, however, now held by such retailer
on or in the personal or real property of such manufacturer or distribu-
tor, which mortgage, lien, interest or estate was acquired on or  before
December  thirty-first,  two  thousand  eighteen,  shall not be included
within the provisions of this subdivision; provided, however, the burden
of establishing the time of the accrual of the interest comprehended  by
this  subdivision, shall be upon the person who claims to be entitled to
the protection and exemption afforded hereby.
  8. No cannabis retail licensee shall make or cause to be made any loan
to any person engaged in the cultivation, processing or distribution  of
cannabis pursuant to this article.
  9.  Each  cannabis  retail  licensee shall designate the price of each
item of cannabis by attaching to  or  otherwise  displaying  immediately
adjacent  to  each  such  item displayed in the interior of the licensed
premises where sales are made a price tag, sign or placard setting forth
the price at which each such item is offered for sale therein.
  10. No person licensed to sell  cannabis  products  at  retail,  shall
allow  or  permit  any  gambling,  or offer any gambling on the licensed
premises, or allow or permit illicit drug activity on the licensed prem-
ises. The use of the licensed premises or any part thereof for the  sale

S. 1509                            139                           A. 2009

of lottery tickets, when duly authorized and lawfully conducted thereon,
shall not constitute gambling within the meaning of this subdivision.
  11.  If  an  employee  of  a  cannabis retail licensee suspects that a
cannabis consumer may be abusing cannabis, such an employee shall have a
duty to encourage such cannabis consumer to seek the help  of  a  regis-
tered  practitioner  and  become  a  certified  patient. Cannabis retail
licensees shall develop standard operating procedures and written  mate-
rials for employees to utilize when consulting consumers for purposes of
this subdivision.
  12.  The  executive  director  is authorized to promulgate regulations
governing licensed adult-use dispensing facilities,  including  but  not
limited  to,  the  hours of operation, size and location of the licensed
facility, potency and types of products offered and establishing a mini-
mum margin  for  which  a  retail  dispensary  must  markup  a  cannabis
product(s) before selling to a cannabis consumer. Any adult-use cannabis
product  sold  by  a  retail dispensary for less than the minimum markup
allowed in regulation, shall be unlawful.
  § 83. Adult-use cannabis advertising.  1. The office is hereby author-
ized to promulgate rules and regulations governing  the  advertising  of
licensed   adult-use  cannabis  cultivators,  processors,  cooperatives,
distributors, retailers, and any cannabis related products or services.
  2. The office shall promulgate explicit rules prohibiting  advertising
that:
  (a) is false, deceptive, or misleading;
  (b) promotes overconsumption;
  (c) depicts consumption by children or other minors;
  (d) is designed in any way to appeal to children or other minors;
  (e)  is  within two hundred feet of the perimeter of a school grounds,
playground, child care center, public park, or library;
  (f) is in public transit vehicles and stations;
  (g) is in the form of an unsolicited internet pop-up;
  (h) is on publicly owned or operated property; or
  (i) makes medical claims or promotes adult-use cannabis for a  medical
or wellness purpose.
  3.  The office shall promulgate explicit rules prohibiting all market-
ing strategies and implementation including, but not limited to,  brand-
ing, packaging, labeling, location of cannabis retailers, and advertise-
ments that are designed to:
  (a) appeal to persons less then twenty-one years of age; or
  (b) disseminate false or misleading information to customers.
  4. The office shall promulgate explicit rules requiring that:
  (a)  all  advertisements and marketing accurately and legibly identify
the licensee responsible for its content; and
  (b) any broadcast, cable,  radio,  print  and  digital  communications
advertisements  only be placed where the audience is reasonably expected
to be twenty-one years of age  or  older,  as  determined  by  reliable,
up-to-date audience composition data.
  §  84.  Minority,  women-owned  businesses  and disadvantaged farmers;
incubator program.  1. The office shall implement a social and  economic
equity  plan  and  actively promote racial, ethnic, and gender diversity
when issuing licenses for adult-use cannabis related activities, includ-
ing by prioritizing consideration  of  applications  by  applicants  who
qualify as a minority and women-owned business or disadvantaged farmers.
Such qualifications shall be determined by the office in regulation.

S. 1509                            140                           A. 2009

  2.  The  office  shall  create  a  social  and economic equity plan to
promote diversity in ownership and employment in the adult-use  cannabis
industry and ensure inclusion of:
  (a) minority-owned businesses;
  (b) women-owned businesses;
  (c)  minority  and  women-owned  businesses, as defined in subdivision
five of this section; and
  (d) disadvantaged farmers, as defined  in  subdivision  five  of  this
section.
  3.  The  social  and  economic  equity  plan shall consider additional
criteria in its licensing determinations. Under the social and  economic
equity  plan,  extra  weight  shall be given to applications that demon-
strate that an applicant:
  (a) is a member of a community group that has been  disproportionately
impacted by the enforcement of cannabis prohibition;
  (b)  has  an  income lower than eighty percent of the median income of
the county in which the applicant resides; and
  (c) was convicted of a cannabis-related offense prior to the effective
date of this chapter.
  4. The office shall also create an incubator program to provide direct
support to social and economic equity applicants after  they  have  been
granted  licenses.  The program shall provide direct support in the form
of counseling services, education, small business coaching, and  compli-
ance assistance.
  5.  For  the purposes of this section, the following definitions shall
apply:
  (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
including  a sole proprietorship, partnership, limited liability company
or corporation that is:
  (i) at least fifty-one percent owned by one  or  more  minority  group
members;
  (ii)  an enterprise in which such minority ownership is real, substan-
tial and continuing;
  (iii) an enterprise in which such minority ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise;
  (iv) an enterprise authorized to do business in this state  and  inde-
pendently owned and operated; and
  (v) an enterprise that is a small business.
  (b)  "minority  group  member"  shall  mean a United States citizen or
permanent resident alien who is and can demonstrate membership in one of
the following groups:
  (i) black persons having origins in any of the  black  African  racial
groups;
  (ii)  Hispanic  persons  of  Mexican,  Puerto Rican, Dominican, Cuban,
Central or South American of either Indian or Hispanic  origin,  regard-
less of race;
  (iii)  Native American or Alaskan native persons having origins in any
of the original peoples of North America; or
  (iv) Asian and Pacific Islander persons having origins in any  of  the
far  east  countries,  south  east  Asia, the Indian subcontinent or the
Pacific islands.
  (c) "women-owned business" shall mean a business enterprise, including
a sole proprietorship, partnership, limited liability company or  corpo-
ration that is:

S. 1509                            141                           A. 2009

  (i)  at  least  fifty-one  percent  owned by one or more United States
citizens or permanent resident aliens who are women;
  (ii)  an  enterprise  in which the ownership interest of such women is
real, substantial and continuing;
  (iii) an enterprise in which such women ownership  has  and  exercises
the authority to control independently the day-to-day business decisions
of the enterprise;
  (iv)  an  enterprise authorized to do business in this state and inde-
pendently owned and operated; and
  (v) an enterprise that is a small business.
  (d) a firm owned by a minority group member who is also a woman may be
defined as a minority-owned business, a women-owned business, or both.
  (e) "disadvantaged farmer" shall mean a New  York  state  resident  or
business  enterprise,  including  a  sole  proprietorship,  partnership,
limited liability company or corporation, that  has  reported  at  least
two-thirds  of  its  federal  gross income as income from farming, in at
least one of the past five preceding tax years, and who:
  (i) farms in a county that has greater than ten percent rate of pover-
ty according to the latest U.S.  Census  Bureau's  American  Communities
Survey;
  (ii)  has  been disproportionately impacted by low commodity prices or
faces the loss of farmland through development or suburban sprawl; and
  (iii) meets any other qualifications as defined in regulation  by  the
office.
  6.  The  office  shall actively promote applicants that foster racial,
ethnic, and gender diversity in their workforce.
  7. Licenses issued to minority and women-owned businesses or under the
social and economic equity plan shall  not  be  transferable  except  to
qualified  minority  and  women-owned  businesses or social and economic
equity applicants and only upon prior written approval of the  executive
director.
  8.  The  office shall collect demographic data on owners and employees
in the adult-use cannabis industry and shall annually publish such data.
  § 85. Collective bargaining.  1. The executive director shall  require
all  licensees  under this article with more than twenty-five employees,
including registered organizations authorized pursuant to section  forty
of  this  chapter  to  cultivate, process, distribute and sell adult-use
cannabis products, to  enter  into  a  bona-fide  collective  bargaining
agreement with a bona-fide labor organization.
  2.  The maintenance of such a collective bargaining agreement shall be
an ongoing material condition of the entity's license.
  § 86. Regulations.  The executive director shall make  regulations  to
implement this article.

                                ARTICLE 5
                              HEMP CANNABIS

Section 90. Cannabinoid related hemp licensing.
        91.  Cannabinoid grower licenses.
        92.  Cannabinoid extractor license.
        93.  Cannabinoid license applications.
        94.  Information to be requested in applications for licenses.
        95.  Fees.
        96.  Selection criteria.
        97.  Limitations of licensure; duration.
        98.  License renewal.

S. 1509                            142                           A. 2009

        99.  Form of license.
        100. Amendments  to  license  and  duty  to  update  information
               submitted for licensing.
        101. Record keeping and tracking.
        102. Inspections and ongoing requirements.
        103. Packaging and labeling of hemp cannabis.
        104. Provisions governing the growing  and  extracting  of  hemp
        cannabis.
        105. Laboratory testing.
        106. Advertising.
        107. Research.
        108. Regulations.
  §  90.  Cannabinoid related hemp licensing.  1. Persons growing, proc-
essing, extracting, and/or manufacturing hemp cannabis or producing hemp
cannabis products distributed, sold or marketed for cannabinoid  content
and  used  or  intended for human or animal consumption or use, shall be
required to obtain the following license or licenses  from  the  office,
depending upon the operation:
  (a) cannabinoid grower license and/or;
  (b) cannabinoid extractor license.
  2. Notwithstanding subsection one of this section, those persons grow-
ing,  processing  or  manufacturing  food or food ingredients from hemp,
which food or food ingredients are generally recognized as  safe,  shall
be  subject  to  regulation  and/or  licensing under the agriculture and
markets law.
  § 91. Cannabinoid grower licenses.  1. A cannabinoid grower's  license
authorizes  the  acquisition,  possession,  cultivation and sale of hemp
cannabis grown or used for its cannabinoid content on the licensed prem-
ises of the grower.
  2. A person holding a cannabinoid grower's license shall not sell hemp
products marketed, distributed or sold for its cannabinoid  content  and
intended  for human consumption or use without also being licensed as an
extractor pursuant to this article.
  3. Persons growing industrial hemp pursuant to article twenty-nine  of
the agriculture and markets law are not authorized to and shall not sell
hemp cannabis for human or animal consumption or use, other than as food
or  a  food  ingredient  that  has  been generally recognized as safe in
accordance with the U.S. food and drug administration or  determined  by
the state to be safe for human consumption as food or a food ingredient.
  4.  A person licensed under article twenty-nine of the agriculture and
markets law as a hemp  grower  may  apply  for  a  cannabinoid  grower's
license  provided  that it can demonstrate to the office that its culti-
vation of hemp meets all the requirements for hemp  cultivated  under  a
cannabinoid grower's license.
  §  92.  Cannabinoid  extractor  license.    1. A cannabinoid extractor
license authorizes the licensee's  acquisition,  possession,  extraction
and manufacture of hemp from a licensed cannabinoid grower for the proc-
essing  of hemp or the production of hemp products marketed, distributed
or sold for cannabinoid content and used or intended for human or animal
consumption or use.
  2. No cannabinoid extractor licensee shall engage in any  other  busi-
ness  on  the  licensed  premises; except that nothing contained in this
chapter shall prevent a cannabinoid extractor licensee from  also  being
licensed as a cannabinoid grower on the same premises.

S. 1509                            143                           A. 2009

  3.  Notwithstanding  subdivisions one and two of this section, nothing
shall prevent a cannabinoid extractor from manufacturing  hemp  products
not used or intended for human or animal consumption or use.
  §  93.  Cannabinoid license applications. 1. Persons shall apply for a
cannabinoid grower license and/or a  cannabinoid  extractor  license  by
submitting  an application upon a form supplied by the office, providing
all the requested information, verified by the applicant or  an  author-
ized representative of the applicant.
  2.  A  separate  license  shall be required for each facility at which
growing or extracting is conducted.
  3. Each application shall remit with its application the fee for  each
requested license.
  §  94.  Information  to be requested in applications for licenses.  1.
The office shall have the authority to prescribe the manner and form  in
which an application must be submitted to the office for licensure under
this article.
  2.  The executive director is authorized to adopt regulations, includ-
ing by emergency rule, establishing information which must  be  included
on an application for licensure under this article. Such information may
include, but is not limited to:  information about the applicant's iden-
tity,  including  racial  and ethnic diversity; ownership and investment
information, including the corporate structure; evidence of  good  moral
character,  including the submission of fingerprints by the applicant to
the division of criminal justice services; information about  the  prem-
ises  to  be  licensed;  financial statements; and any other information
prescribed by in regulation.
  3. All license applications shall be signed by the  applicant  (if  an
individual), by a managing partner (if a limited liability corporation),
by an officer (if a corporation), or by all partners (if a partnership).
Each  person  signing  such  application shall verify it or affirm it as
true under the penalties of perjury.
  4. All license or permit applications shall be accompanied by a check,
draft or other forms of payment as the office may require  or  authorize
in the amount required by this article for such license or permit.
  5.  If there be any change, after the filing of the application or the
granting of a license, in any of the facts required to be set  forth  in
such application, a supplemental statement giving notice of such change,
cost and source of money involved in the change, duly verified, shall be
filed  with  the office within ten days after such change. Failure to do
so shall, if willful and deliberate, be  cause  for  revocation  of  the
license.
  6. In giving any notice, or taking any action in reference to a licen-
see  of  a  licensed  premises, the office may rely upon the information
furnished  in  such  application  and  in  any  supplemental   statement
connected therewith, and such information may be presumed to be correct,
and  shall  be  binding  upon  a  registered  organization,  licensee or
licensed  premises  as  if  correct.  All  information  required  to  be
furnished in such application or supplemental statements shall be deemed
material  in  any  prosecution  for  perjury,  any proceeding to revoke,
cancel or suspend any license, and  in  the  office's  determination  to
approve or deny the license.
  7.  The  office  may,  in  its discretion, waive the submission of any
category of information described in this section for  any  category  of
license  or permit, provided that it shall not be permitted to waive the
requirement for submission of any such category  of  information  solely
for an individual applicant or applicants.

S. 1509                            144                           A. 2009

  §  95. Fees. The office shall have the authority to charge licensees a
biennial license fee. Such fee may be based on the amount of hemp canna-
bis to be grown, processed or extracted by the licensee, the gross annu-
al receipts of the licensee for the  previous  license  period,  or  any
other factors deemed appropriate by the office.
  § 96. Selection criteria. 1. An applicant shall furnish evidence:
  (a) its ability to effectively maintain a delta-9-tetrahydrocannabinol
concentration  that  does not exceed a percentage of delta-9-tetrahydro-
cannabinol cannabis set by the executive director on a dry weight  basis
of  any part of the plant of the genus cannabis, or per volume or weight
of cannabis product, or the combined percent of delta-9-tetrahydrocanna-
binol and tetrahydrocannabinolic acid in any part of the  plant  of  the
genus cannabis regardless of moisture content, for all hemp cannabis and
hemp  derived  products cultivated, processed or extracted by the appli-
cant;
  (b) its ability to comply with all applicable  state  laws  and  regu-
lations,  including, without limitation, the provisions of article four-
teen of the agriculture and markets law;
  (c) that the applicant is ready, willing and able to properly carry on
the activities for which a license is sought; and
  (d) that the applicant is in possession of or has  the  right  to  use
land, buildings and equipment sufficient to properly carry on the activ-
ity described in the application.
  2.  The  office,  in considering whether to grant the license applica-
tion, shall consider whether:
  (a) it is in the public interest that such license be granted,  taking
into  consideration  whether  the number of licenses will be adequate or
excessive to reasonably serve demand;
  (b) the applicant and its managing officers are of good moral  charac-
ter  and  do  not  have  an  ownership  or  controlling interest in more
licenses or permits than allowed by this chapter; and
  (c) the applicant satisfies any other conditions as determined by  the
office.
  3.  If  the  executive  director  is  not satisfied that the applicant
should be issued a license, the  executive  director  shall  notify  the
applicant in writing of the specific reason or reasons for denial.
  4.  The executive director shall have authority and sole discretion to
determine the number of licenses issued pursuant to this article.
  § 97. Limitations of licensure; duration. 1. No  license  pursuant  to
this  article  may  be  issued  to  a person under the age of twenty-one
years.
  2. The office shall have the authority  to  limit,  by  canopy,  plant
count  or  other means, the amount of hemp cannabis allowed to be culti-
vated, processed, extracted or sold by a licensee.
  3. All licenses under this article shall expire two  years  after  the
date  of  issue and be subject to any rules or limitations prescribed by
the executive director in regulation.
  § 98. License renewal. 1. Each license, issued pursuant to this  arti-
cle,  may  be  renewed upon application therefor by the licensee and the
payment of the fee for such license as prescribed by this article.
  2. In the case of applications for renewals, the office  may  dispense
with the requirements of such statements as it deems unnecessary in view
of those contained in the application made for the original license, but
in  any  event  the  submission  of photographs of the licensed premises
shall be dispensed with, provided the applicant for such  renewal  shall

S. 1509                            145                           A. 2009

file  a  statement  with the office to the effect that there has been no
alteration of such premises since the original license was issued.
  3.  The office may make such rules as may be necessary, not inconsist-
ent with this chapter, regarding applications for renewals  of  licenses
and permits and the time for making the same.
  4.  The  office  shall provide an application for renewal of a license
issued under this article not less than ninety days prior to the expira-
tion of the current license.
  5. The office may only issue a renewal license  upon  receipt  of  the
prescribed  renewal  application  and renewal fee from a licensee if, in
addition to the criteria in section ninety-four  of  this  article,  the
license's license is not under suspension and has not been revoked.
  6. The office shall have the authority to charge applicants for licen-
sure  under  this article a non-refundable application fee. Such fee may
be based on the type of licensure sought, cultivation and/or  production
volume,  or  any  other factors deemed reasonable and appropriate by the
office to achieve the policy and purpose of this chapter.
  § 99. Form of license. Licenses issued pursuant to this article  shall
specify:
  1. the name and address of the licensee;
  2. the activities permitted by the license;
  3.  the  land,  buildings  and  facilities  that  may  be used for the
licensed activities of the licensee;
  4. a unique license number issued by the office to the licensee; and
  5. such other information as the executive director shall deem  neces-
sary to assure compliance with this chapter.
  §  100. Amendments to license and duty to update information submitted
for licensing. 1. Upon application  of  a  licensee  to  the  office,  a
license  may  be  amended  to  allow the licensee to relocate within the
state, to add or delete licensed activities or facilities, or  to  amend
the  ownership  or  organizational  structure  of the entity that is the
licensee. The fee for such amendment shall be two hundred fifty dollars.
  2. In the event that any of the information provided by the  applicant
changes  either while the application is pending or after the license is
granted, within ten days of any such change, the applicant  or  licensee
shall submit to the office a verified statement setting forth the change
in circumstances of facts set forth in the application. Failure to do so
shall,  if  willful  and  deliberate,  be  cause  for  revocation of the
license.
  3. A license shall become void by a change in  ownership,  substantial
corporate change or location without prior written approval of the exec-
utive  director.    The  executive  director  may promulgate regulations
allowing for certain types of changes in ownership without the need  for
prior written approval.
  4.  For purposes of this section, "substantial corporate change" shall
mean:
  (a) for a corporation, a change of eighty percent or more of the offi-
cers and/or directors, or a transfer of eighty percent or more of  stock
of such corporation, or an existing stockholder obtaining eighty percent
or more of the stock of such corporation; and
  (b)  for  a  limited  liability company, a change of eighty percent or
more of the managing members of the company, or  a  transfer  of  eighty
percent  or  more  of ownership interest in said company, or an existing
member obtaining a cumulative of eighty percent or more of the ownership
interest in said company.

S. 1509                            146                           A. 2009

  § 101. Record keeping and tracking. 1. The executive  director  shall,
by  regulation,  require each licensee pursuant to this article to adopt
and maintain security, tracking, record keeping,  record  retention  and
surveillance  systems,  relating  to all hemp cannabis at every stage of
acquiring,  possession,  manufacture,  transport,  sale, or delivery, or
distribution by the licensee, subject to regulations  of  the  executive
director.
  2.  Every licensee shall keep and maintain upon the licensed premises,
adequate books and records of all transactions  involving  the  licensee
and  sale  of its products, which shall include all information required
by rules promulgated by the office.
  3. Each sale shall be recorded separately on a numbered invoice, which
shall have printed thereon the number, the name  of  the  licensee,  the
address of the licensed premises, and the current license number.
  4. Such books, records and invoices shall be kept for a period of five
years  and shall be available for inspection by any authorized represen-
tative of the office.
  § 102. Inspections and ongoing requirements. All  licensees  shall  be
subject to reasonable inspection by the office, and a person who holds a
license must make himself or herself, or an agent thereof, available and
present for any inspection required by the office. The office shall make
reasonable  accommodations  so that ordinary business is not interrupted
and  safety  and  security  procedures  are  not  compromised   by   the
inspection.
  §  103.  Packaging  and  labeling of hemp cannabis.   1. The office is
hereby authorized to promulgate  rules  and  regulations  governing  the
packaging  and labeling of hemp cannabis products, sold or possessed for
sale in New York state.
  2. Such regulations shall include, but not be  limited  to,  requiring
labels warning consumers of any potential impact on human health result-
ing from the consumption of hemp cannabis products that shall be affixed
to  those products when sold, if such labels are deemed warranted by the
office.
  3. Such rules and regulations shall establish methods  and  procedures
for  determining,  among  other  things, serving sizes for hemp cannabis
products, active cannabinoid concentration per serving size, and  number
of  servings per container. Such regulations shall also require a nutri-
tional fact panel that incorporates data  regarding  serving  sizes  and
potency thereof.
  4.  The  packaging,  sale,  or  possession by any licensee of any hemp
product intended for human or animal consumption or use not  labeled  or
offered  in conformity with rules and regulations promulgated in accord-
ance with this section shall be grounds for the imposition  of  a  fine,
and/or the suspension, revocation or cancellation of a license.
  §  104. Provisions governing the growing and extracting of hemp canna-
bis.  1. No licensed cannabinoid grower  or  extractor  shall  sell,  or
agree to sell or deliver in the state any hemp cannabis products, as the
case  may  be,  except  in  sealed  containers  containing quantities in
accordance with size standards pursuant to rules adopted by the  office.
Such  containers  shall  have  affixed  thereto  such  labels  as may be
required by the rules of the office.
  2. Licensed cannabinoid growers shall only  use  pesticides  that  are
registered  by  the New York state department of environmental conserva-
tion  or  that  specifically  meet  the  United   States   Environmental
Protection  Agency  registration  exemption  criteria  for  minimum risk

S. 1509                            147                           A. 2009

pesticides, and only  in  compliance  with  regulations,  standards  and
guidelines issued by the department of environmental conservation.
  3.  All  hemp cannabis products shall be extracted and manufactured in
accordance with good manufacturing processes, pursuant to  Part  111  of
Title  21  of  the Code of Federal Regulations as may be modified by the
executive director in regulation.
  4. The use or integration of alcohol  or  nicotine  in  hemp  cannabis
products is strictly prohibited.
  §  105.  Laboratory  testing.  1.  Every  cannabinoid  extractor shall
contract with an independent laboratory to test  the  cannabis  products
produced by the licensed extractor. The executive director, in consulta-
tion  with  the commissioner of health, shall approve the laboratory and
require that the laboratory report testing results in  a  manner  deter-
mined by the executive director. The executive director is authorized to
issue  regulations requiring the laboratory to perform certain tests and
services.
  2. Cannabinoid extractors shall make laboratory test reports available
to persons holding a cannabinoid permit pursuant to article six of  this
chapter for all cannabis products manufactured by the licensee.
  3.  On-site  laboratory  testing by licensees is permissible; however,
such testing shall not be certified by the office and  does  not  exempt
the  licensee  from  the  requirements of quality assurance testing at a
testing laboratory pursuant to this section.
  § 106. Advertising. The office shall promulgate rules and  regulations
governing  the  advertising  of  hemp  cannabis  and  any  other related
products or services as determined by the executive director.
  § 107. Research. 1. The office shall promote research and  development
through  public-private  partnerships  to  bring  new  hemp cannabis and
industrial hemp derived products to market within the state.
  2. The executive director may develop and carry out research  programs
relating to industrial hemp and hemp cannabis.
  §  108.  Regulations. The executive director shall make regulations to
implement this article.

                                ARTICLE 6
                           GENERAL PROVISIONS

Section 125. General prohibitions and restrictions.
        126. License to be confined to premises licensed;  premises  for
               which no license shall be granted; transporting cannabis.
        127. Protections  for  the  use  of cannabis; unlawful discrimi-
               nations prohibited.
        128. Registrations and licenses.
        129. Laboratory testing permit.
        130. Special use permits.
        131. Professional and medical record keeping.
        132. County opt-out; municipal control and preemption.
        133. Executive  director  to  be  necessary  party  to   certain
               proceedings.
        134. Penalties for violation of this chapter.
        135. Revocation  of  registrations,  licenses  and  permits  for
               cause; procedure for revocation or cancellation.
        136. Lawful actions pursuant to this chapter.
        137. Review by courts.
        138. Illicit cannabis.

S. 1509                            148                           A. 2009

        139. Injunction for unlawful manufacture, sale or consumption of
               cannabis.
        140. Persons  forbidden  to  traffic  cannabis products; certain
               officials not to be interested in manufacture or sale  of
               cannabis products.
        141. Access to criminal history information through the division
               of criminal justice services.
  §  125.  General  prohibitions  and restrictions.   1. No person shall
cultivate, process, or distribute for  sale  or  sell  at  wholesale  or
retail any cannabis, cannabis product, medical cannabis or hemp cannabis
product within the state without obtaining the appropriate registration,
license, or permit therefor required by this chapter.
  2.  No  registered organization, licensee, or permittee shall sell, or
agree to sell or deliver in this state any cannabis or hemp cannabis for
the purposes of resale  to  any  person  who  is  not  duly  registered,
licensed  or permitted pursuant to this chapter to sell such product, at
wholesale or retail, as the case may be, at the time of  such  agreement
and sale.
  3. No registered organization, licensee, or permittee shall employ, or
permit  to  be  employed, or shall allow to work, on any premises regis-
tered or licensed for retail sale hereunder, any person under the age of
eighteen years in any capacity where the duties of such  person  require
or  permit  such  person  to  sell,  dispense or handle cannabis or hemp
cannabis.
  4. No registered organization,  licensee,  or  permittee  shall  sell,
deliver  or give away, or cause, permit or procure to be sold, delivered
or given away any cannabis, cannabis product, medical cannabis  or  hemp
cannabis  on  credit; except that a registered organization, licensee or
permittee may accept third party credit cards for the sale of any canna-
bis, cannabis product, medical cannabis or hemp cannabis for which it is
registered, licensed or permitted to dispense or  sell  to  patients  or
cannabis  consumers.  This includes, but is not limited to, any consign-
ment sale of any kind.
  5. No registered organization, licensee, or permittee shall  cease  to
be  operated  as  a  bona fide or legitimate premises within the contem-
plation of the registration, license, or permit issued  for  such  prem-
ises, as determined within the judgment of the office.
  6.  No  registered  organization, licensee, or permittee shall refuse,
nor any person holding a registration, license, or  permit  refuse,  nor
any  officer  or  director  of any corporation or organization holding a
registration, license, or permit refuse, to appear and/or testify  under
oath  at  an  inquiry or hearing held by the office, with respect to any
matter bearing upon the registration, license, or permit, the conduct of
any people at the licensed premises, or bearing upon  the  character  or
fitness  of  such registrant, licensee, or permittee to continue to hold
any registration, license, or permit. Nor shall any of the  above  offer
false testimony under oath at such inquiry or hearing.
  7.  No  registered  organization, licensee, or permittee shall engage,
participate in, or aid or abet any violation or provision of this  chap-
ter, or the rules or regulations of the office.
  8.  The  proper conduct of registered, licensed, or permitted premises
is essential to the public interest. Failure of a  registered  organiza-
tion,  licensee,  or permittee to exercise adequate supervision over the
registered, licensed, or permitted location poses a substantial risk not
only to the objectives of this chapter but imperils the health,  safety,
and  welfare  of the people of this state. It shall be the obligation of

S. 1509                            149                           A. 2009

each person registered, licensed, or permitted  under  this  chapter  to
ensure  that  a high degree of supervision is exercised over any and all
conduct at any registered, licensed, or permitted location  at  any  and
all times in order to safeguard against abuses of the privilege of being
registered,  licensed, or permitted, as well as other violations of law,
statute, rule, or regulation. Persons registered, licensed, or permitted
shall be held strictly accountable for any and all violations that occur
upon any registered, licensed, or permitted premises, and  for  any  and
all  violations  committed  by  or  permitted  by  any manager, agent or
employee of such registered, licensed, or permitted person.
  9. It shall be unlawful for any  person,  partnership  or  corporation
operating  a place for profit or pecuniary gain, with a capacity for the
assemblage of twenty or more persons to permit a person  or  persons  to
come  to  the place of assembly for the purpose of cultivating, process-
ing, distributing, or retail distribution or sale of  cannabis  on  said
premises. This includes, but is not limited, to, cannabis that is either
provided  by the operator of the place of assembly, his agents, servants
or employees, or cannabis that is brought  onto  said  premises  by  the
person or persons assembling at such place, unless an appropriate regis-
tration,  license,  or permit has first been obtained from the office of
cannabis management by the operator of said place of assembly.
  10. As it is a privilege under the law to be registered, licensed,  or
permitted  to cultivate, process, distribute, traffic, or sell cannabis,
the office may impose any such further restrictions upon any registrant,
licensee, or permittee in particular instances as it deems necessary  to
further  state policy and best serve the public interest. A violation or
failure of any person registered, licensed, or permitted to comply  with
any  condition,  stipulation, or agreement, upon which any registration,
license, or permit was issued or renewed by the office shall subject the
registrant, licensee, or permittee to suspension, cancellation,  revoca-
tion, and/or civil penalties as determined by the office.
  11.  No  adult-use cannabis or medical cannabis may be imported to, or
exported out of, New York state by a registered  organization,  licensee
or  person  holding  a  license  and/or permit pursuant to this chapter,
until such time as it may become legal  to  do  so  under  federal  law.
Should it become legal to do so under federal law, the office is granted
the power to promulgate such rules and regulations as it deems necessary
to protect the public and the policy of the state.
  12.  No  registered organization, licensee or any of its agents, serv-
ants or employees shall peddle any cannabis product, medical cannabis or
hemp cannabis from house to house by means  of  a  truck  or  otherwise,
where  the  sale  is  consummated  and delivery made concurrently at the
residence or place of business of a cannabis consumer. This  subdivision
shall  not  prohibit the delivery by a registered organization to certi-
fied patients or their designated caregivers, pursuant to article  three
of this chapter.
  13.  No  licensee  shall  employ  any  canvasser  or solicitor for the
purpose of receiving an order from a certified patient, designated care-
giver or cannabis consumer for any cannabis product, medical cannabis or
hemp cannabis at the residence or place of  business  of  such  patient,
caregiver  or  consumer,  nor  shall  any licensee receive or accept any
order, for the sale of any cannabis product, medical  cannabis  or  hemp
cannabis  which shall be solicited at the residence or place of business
of a patient, caregiver or consumer. This subdivision shall not prohibit
the solicitation by a distributor of an order from any licensee  at  the
licensed premises of such licensee.

S. 1509                            150                           A. 2009

  14.  No  premises  registered,  licensed,  or  permitted by the office
shall:
  (a) permit or allow any gambling on the premises;
  (b) permit or allow the premises to become disorderly;
  (c)  permit or allow the use, by any person, of any fireworks or other
pyrotechnics on the premises; or
  (d) permit or allow to appear as an entertainer, on any  part  of  the
premises registered, licensed, or permitted, any person under the age of
eighteen years.
  § 126. License to be confined to premises licensed; premises for which
no  license shall be granted; transporting cannabis.  1. A registration,
license, or permit issued to any person, pursuant to this  chapter,  for
any  registered, licensed, or permitted premises shall not be transfera-
ble to any other person, to any other location or premises,  or  to  any
other  building or part of the building containing the licensed premises
except in the discretion of the office. All privileges  granted  by  any
registration,  license,  or permit shall be available only to the person
therein specified, and only for  the  premises  licensed  and  no  other
except  if  authorized  by  the  office.    Provided,  however, that the
provisions of this section shall not be deemed to prohibit the amendment
of a registration  or  license  as  provided  for  in  this  chapter.  A
violation  of  this  section shall subject the registration, license, or
permit to revocation for cause.
  2. Where a registration or license for premises has been revoked,  the
office in its discretion may refuse to issue a registration, license, or
permit  under  this chapter, for a period of up to five years after such
revocation, for such premises or for any part of the building containing
such premises and connected therewith.
  3. In determining whether to issue such a proscription against  grant-
ing  any  registration, license, or permit for such five-year period, in
addition to any other factors deemed relevant to the office, the  office
shall,  in  the  case  of  a  license revoked due to the illegal sale of
cannabis to a minor, determine whether the proposed subsequent  licensee
has  obtained such premises through an arm's length transaction, and, if
such transaction is not found to be an  arm's  length  transaction,  the
office shall deny the issuance of such license.
  4. For purposes of this section, "arm's length transaction" shall mean
a  sale  of  a  fee  of all undivided interests in real property, lease,
management agreement, or other agreement giving  the  applicant  control
over  the  cannabis  at  the  premises, or any part thereof, in the open
market, between an informed and willing buyer and seller  where  neither
is under any compulsion to participate in the transaction, unaffected by
any unusual conditions indicating a reasonable possibility that the sale
was  made  for  the purpose of permitting the original licensee to avoid
the effect of the revocation. The following sales shall be presumed  not
to  be  arm's  length  transactions  unless  adequate  documentation  is
provided demonstrating that the sale, lease,  management  agreement,  or
other  agreement  giving  the applicant control over the cannabis at the
premises, was not conducted, in whole or in part,  for  the  purpose  of
permitting the original licensee to avoid the effect of the revocation:
  (a) a sale between relatives;
  (b) a sale between related companies or partners in a business; or
  (c) a sale, lease, management agreement, or other agreement giving the
applicant  control  over the cannabis at the premises, affected by other
facts or circumstances that would indicate that the sale, lease, manage-
ment agreement, or other agreement giving the applicant control over the

S. 1509                            151                           A. 2009

cannabis at the premises, is entered into for  the  primary  purpose  of
permitting the original licensee to avoid the effect of the revocation.
  5.  No  registered organization, licensee or permittee shall transport
cannabis products or medical cannabis except in vehicles owned and oper-
ated by such registered organization, licensee or  permittee,  or  hired
and operated by such registered organization, licensee or permittee from
a  trucking  or transportation company permitted and registered with the
office.
  6. No common carrier or person operating a transportation facility  in
this  state,  other than the United States government, shall receive for
transportation or delivery within the state  any  cannabis  products  or
medical cannabis unless the shipment is accompanied by copy of a bill of
lading,  or  other document, showing the name and address of the consig-
nor, the name and address of the consignee, the date  of  the  shipment,
and  the  quantity  and  kind  of  cannabis products or medical cannabis
contained therein.
  § 127. Protections for the use of cannabis;  unlawful  discriminations
prohibited.   1. No person, registered organization, licensee or permit-
tee shall be subject to arrest, prosecution, or penalty in  any  manner,
or  denied  any  right  or privilege, including but not limited to civil
liability or disciplinary  action  by  a  business  or  occupational  or
professional  licensing  board  or  office, solely for conduct permitted
under this chapter. For the avoidance of doubt, the  appellate  division
of  the  supreme court of the state of New York, and any disciplinary or
character and fitness committees established by  them  are  occupational
and  professional  licensing  boards within the meaning of this section.
State or local law enforcement agencies  shall  not  cooperate  with  or
provide  assistance to the government of the United States or any agency
thereof in enforcing the federal controlled substances act, 21 U.S.C. et
seq., solely for actions consistent with this chapter, except as  pursu-
ant to a valid court order.
  2.  No school or landlord may refuse to enroll or lease to and may not
otherwise penalize a person solely for conduct allowed under this  chap-
ter, except as exempted:
  (a)  if  failing to do so would cause the school or landlord to lose a
monetary or licensing related benefit under federal law or regulations;
  (b) if the institution has  adopted  a  code  of  conduct  prohibiting
cannabis use on the basis of religious belief; or
  (c)  if  a property is registered with the New York smoke-free housing
registry, it is not required to permit the smoking of cannabis  products
on its premises.
  3.  For  the  purposes of medical care, including organ transplants, a
certified patient's authorized use of medical cannabis must  be  consid-
ered  the equivalent of the use of any other medication under the direc-
tion of a practitioner and does not constitute the  use  of  an  illicit
substance  or  otherwise disqualify a registered qualifying patient from
medical care.
  4. Unless an employer establishes that the lawful use of cannabis  has
impaired  the employee's ability to perform the employee's job responsi-
bilities, it shall be unlawful to take  any  adverse  employment  action
against an employee based on conduct allowed under this chapter.
  5.  For  the  purposes  of  this  section, an employer may consider an
employee's ability to perform the employee's job responsibilities to  be
impaired when the employee manifests specific articulable symptoms while
working that decrease or lessen the employee's performance of the duties
or tasks of the employee's job position.

S. 1509                            152                           A. 2009

  6.  Nothing  in  this  section shall restrict an employer's ability to
prohibit or take adverse employment action for the possession or use  of
intoxicating  substances  during  work  hours, or require an employer to
commit any act that would cause the  employer  to  be  in  violation  of
federal  law,  or that would result in the loss of a federal contract or
federal funding.
  7. As used in this section, "adverse employment action" means refusing
to hire or employ, barring or discharging from employment,  requiring  a
person  to  retire from employment, or discriminating against in compen-
sation or in terms, conditions, or privileges of employment.
  8. A person currently under parole, probation or  other  state  super-
vision, or released on bail awaiting trial may not be punished or other-
wise penalized for conduct allowed under this chapter.
  §  128.  Registrations  and  licenses.   1. No registration or license
shall be transferable or  assignable  except  that  notwithstanding  any
other provision of law, the registration or license of a sole proprietor
converting  to  corporate  form,  where such proprietor becomes the sole
stockholder and only officer and director of such new  corporation,  may
be  transferred  to  the subject corporation if all requirements of this
chapter remain the same with respect to such registration or license  as
transferred  and, further, the registered organization or licensee shall
transmit to the office, within ten  days  of  the  transfer  of  license
allowable  under  this  subdivision, on a form prescribed by the office,
notification of the transfer of such license.
  2. No registration or license shall be pledged or deposited as collat-
eral security for any loan or upon any other  condition;  and  any  such
pledge or deposit, and any contract providing therefor, shall be void.
  3.  Licenses  issued  under this chapter shall contain, in addition to
any further information or material to be prescribed by the rules of the
office, the following information:
  (a) name of the person to whom the license is issued;
  (b) kind of license and what kind of traffic in  cannabis  is  thereby
permitted;
  (c)  description by street and number, or otherwise, of licensed prem-
ises; and
  (d) a statement in substance that such license shall not be  deemed  a
property  or vested right, and that it may be revoked at any time pursu-
ant to law.
  § 129. Laboratory testing permit.   1. The  executive  director  shall
approve and permit one or more independent cannabis testing laboratories
to test medical cannabis, adult-use cannabis and/or hemp cannabis.
  2. To be permitted as an independent cannabis laboratory, a laboratory
must  apply  to  the office, on a form and in a manner prescribed by the
office, and must demonstrate the following to the  satisfaction  of  the
executive director:
  (a) the owners and directors of the laboratory are of good moral char-
acter;
  (b)  the laboratory and its staff has the skills, resources and exper-
tise needed to accurately and consistently perform all  of  the  testing
required for adult-use cannabis, medical cannabis and/or hemp cannabis;
  (c)  the  laboratory has in place and will maintain adequate policies,
procedures, and facility security to ensure proper:  collection,  label-
ing, accessioning, preparation, analysis, result reporting, disposal and
storage of adult-use cannabis, medical cannabis and/or hemp cannabis;
  (d) the laboratory is physically located in New York state;

S. 1509                            153                           A. 2009

  (e)  the  laboratory  has  been  approved  by the department of health
pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu-
lations, pertaining to laboratories performing  environmental  analysis;
and
  (f)  the  laboratory meets any and all requirements prescribed by this
chapter and by the executive director in regulation.
  3. The owner of a laboratory testing permit under this  section  shall
not  hold  a registration or license in any category of this chapter and
shall not have any direct or indirect ownership interest in such  regis-
tered  organization  or  licensee.  No  board  member, officer, manager,
owner, partner, principal stakeholder or member of a  registered  organ-
ization or licensee under this chapter, or such person's immediate fami-
ly  member,  shall  have  an interest or voting rights in any laboratory
testing permittee.
  4. The executive director shall require that the permitted  laboratory
report  testing results to the office in a manner, form and timeframe as
determined by the executive director.
  5. The executive director is authorized to promulgate regulations,  in
consultation  with the commissioner of the department of health, requir-
ing permitted laboratories to perform certain tests and services.
  § 130. Special Use Permits.  The office is hereby authorized to  issue
the  following  kinds  of  permits for carrying on activities consistent
with the policy and purpose of this chapter with  respect  to  cannabis.
The  executive  director  has  the authority to set fees for all permits
issued pursuant to this section, to establish the periods  during  which
permits  are  authorized,  and  to make rules and regulations, including
emergency regulations, to implement this section.
  1. Industrial cannabis permit - to purchase cannabis for  use  in  the
manufacture  and sale of any of the following, when such cannabis is not
otherwise suitable for consumption purposes, namely:  (a) apparel, ener-
gy, paper, and tools; (b) scientific, chemical,  mechanical  and  indus-
trial  products;  or  (c)  any other industrial use as determined by the
executive director in regulation.
  2. Nursery permit - to produce clones,  immature  plants,  seeds,  and
other  agricultural  products used specifically for the planting, propa-
gation, and cultivation of  cannabis,  and  to  sell  such  to  licensed
adult-use  cultivators, registered organizations, and certified patients
or their designated caregivers.
  3. Solicitor's permit - to offer for sale or to solicit orders for the
sale of any cannabis products, medical cannabis and/or hemp cannabis, as
a representative of a registered organization  or  licensee  under  this
chapter.
  4.  Broker's  permit  - to act as a broker in the purchase and sale of
cannabis products, medical cannabis and/or hemp cannabis for  a  fee  or
commission,  for or on behalf of a person authorized to cultivate, proc-
ess, distribute or dispense cannabis products, medical cannabis or  hemp
cannabis within the state.
  5.  Trucking  permit  - to allow for the trucking or transportation of
cannabis products, medical cannabis or hemp cannabis by a  person  other
than a registered organization or licensee under this chapter.
  6.  Warehouse  permit - to allow for the storage of cannabis, cannabis
products, medical cannabis or hemp cannabis at a location not  otherwise
registered or licensed by the office.
  7.  Delivery permit - to authorize licensed adult-use cannabis dispen-
saries to deliver adult-use cannabis and cannabis products  directly  to
cannabis consumers.

S. 1509                            154                           A. 2009

  8. Cannabinoid permit - to sell cannabinoid products derived from hemp
cannabis for off-premises consumption.
  9.  Temporary retail cannabis permit - to authorize the retail sale of
adult-use cannabis to cannabis consumers, for a limited purpose or dura-
tion.
  10. Caterer's permit - to authorize the service of  cannabis  products
at  a function, occasion or event in a hotel, restaurant, club, ballroom
or other premises, which shall authorize within the hours fixed  by  the
office,  during  which  cannabis  may  lawfully be sold or served on the
premises in which such function, occasion or event is held.
  11. Packaging permit - to authorize a licensed cannabis distributor to
sort, package, label and bundle  cannabis  products  from  one  or  more
registered  organizations or licensed processors, on the premises of the
licensed cannabis distributor or at a warehouse for which a  permit  has
been issued under this section.
  12.  Miscellaneous  permits  -  to purchase, receive or sell cannabis,
cannabis  products  or  medical  cannabis,  or  receipts,  certificates,
contracts  or other documents pertaining to cannabis, cannabis products,
or medical cannabis, in cases not expressly provided for by  this  chap-
ter,  when  in  the  judgment  of the office it would be appropriate and
consistent with the policy and purpose of this chapter.
  § 131. Professional and medical  record  keeping.    Any  professional
providing services in connection with a licensed or potentially licensed
business under this chapter, or in connection with other conduct permit-
ted  under  this chapter, and any medical professional providing medical
care to a patient, other than a certified patient, may agree with  their
client  or patient to maintain no record, or any reduced level of record
keeping that professional and client or patient may agree.  In  case  of
such agreement, the professional's only obligation shall be to keep such
records  as  agreed, and to keep a record of the agreement. Such reduced
record keeping is conduct permitted under this chapter.
  § 132. County opt-out; municipal  control  and  preemption.    1.  The
provisions of article four of this chapter, authorizing the cultivation,
processing,  distribution  and  sale  of  adult-use cannabis to cannabis
consumers, shall not be applicable to a county, or city having  a  popu-
lation  of  one-hundred thousand or more residents, which adopts a local
law, ordinance or resolution by a majority vote of its governing body to
completely prohibit the establishment or operation of one or more  types
of licenses contained in article four of this chapter, within the juris-
diction of the county or city.
  2.  Except  as  provided  for  in subdivision one of this section, all
county, town, city and village municipalities are hereby preempted  from
adopting  any  rule,  ordinance, regulation or prohibition pertaining to
the operation or licensure of registered organizations, adult-use canna-
bis licenses or hemp licenses. However, municipalities  may  pass  ordi-
nances  or  regulations governing the time, place and manner of licensed
adult-use cannabis retail dispensaries, provided such ordinance or regu-
lation does not make the operation of such licensed retail  dispensaries
unreasonably  impracticable  as  determined by the executive director in
his or her sole discretion.
  §  133.  Executive  director  to  be  necessary   party   to   certain
proceedings.    The  executive  director  shall  be  made a party to all
actions and proceedings affecting in any manner the ability of a  regis-
tered  organization or licensee to operate within a municipality, or the
result of any vote thereupon; to all actions and proceedings relative to
issuance or revocation of registrations, licenses  or  permits;  to  all

S. 1509                            155                           A. 2009

injunction  proceedings,  and  to all other civil actions or proceedings
which in any manner affect the enjoyment of the privileges or the opera-
tion of the restrictions provided for in this chapter.
  §  134.  Penalties  for  violation of this chapter.  1. Any person who
cultivates for sale or sells cannabis, cannabis products, medical canna-
bis or hemp cannabis without having an appropriate registration, license
or permit therefor, or whose registration, license, or permit  has  been
revoked, surrendered or cancelled, shall be guilty of a misdemeanor, and
upon  first conviction thereof shall be punished by a fine not more than
five thousand dollars per instance or by imprisonment in a  county  jail
or  penitentiary  for  a term of not less than thirty days nor more than
one year or both and upon second conviction thereof shall be punished by
a fine not less than ten thousand dollars or by imprisonment in a county
jail or penitentiary for a term of not less than thirty  days  nor  more
than  one year or both and upon all subsequent convictions thereof shall
be punished by a fine not less twenty-five thousand dollars or  peniten-
tiary  for a term of not less than thirty days nor more than one year or
both provided, however, that in default of payment of any fine  imposed,
such  person  shall be imprisoned in a county jail or penitentiary for a
term of not less than thirty days.
  2. Any registered organization  or  licensee,  whose  registration  or
license  has  been suspended pursuant to the provisions of this chapter,
who sells cannabis, cannabis products, medical cannabis or hemp cannabis
during the suspension period, shall be guilty of a misdemeanor, and upon
conviction thereof shall be punished by a fine of  not  more  than  five
thousand  dollars  per  instance  or by imprisonment in a county jail or
penitentiary for a term of not more than six months,  or  by  both  such
fine and imprisonment.
  3.  Any  person  who shall make any false statement in the application
for a registration, license or a permit  under  this  chapter  shall  be
guilty of a misdemeanor, and upon conviction thereof shall be punishable
by  a fine of not more than five thousand dollars, or by imprisonment in
a county jail or penitentiary for a term of not more than six months  or
both.
  4.  Any  violation  by any person of any provision of this chapter for
which no punishment or penalty is otherwise provided shall be  a  misde-
meanor.
  §  135.  Revocation  of registrations, licenses and permits for cause;
procedure for revocation or cancellation.  1. Any registration,  license
or  permit  issued  pursuant  to this chapter may be revoked, cancelled,
suspended and/or subjected to the imposition  of  a  civil  penalty  for
cause, and must be revoked for the following causes:
  (a)  conviction of the registered organization, licensee, permittee or
his or her agent or employee for selling any  illegal  cannabis  on  the
premises registered, licensed or permitted; or
  (b)  for  transferring,  assigning  or  hypothecating  a registration,
license or permit without prior written approval of the office.
  2. Notwithstanding the issuance of a registration, license  or  permit
by  way of renewal, the office may revoke, cancel or suspend such regis-
tration, license or permit and/or may impose a civil penalty against any
holder of such registration, license or permit, as  prescribed  by  this
section,  for  causes  or violations occurring during the license period
immediately preceding the issuance  of  such  registration,  license  or
permit.
  3.  (a)  As  used  in  this  section,  the term "for cause" shall also
include the existence of a sustained and continuing pattern  of  miscon-

S. 1509                            156                           A. 2009

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

S. 1509                            157                           A. 2009

notification of such second or subsequent conviction, shall, in addition
to  any  other sanction or civil or criminal penalty imposed pursuant to
this chapter, impose on such licensee a civil penalty not to exceed  ten
thousand  dollars.    For  purposes  of  this  subdivision, a qualifying
offense shall mean the unlawful sale of cannabis to a person  under  the
age  of  twenty-one. For purposes of this subdivision, a conviction of a
licensee or an employee or agent of such  licensee  shall  constitute  a
conviction of such licensee.
  §  136. Lawful actions pursuant to this chapter.  1. Contracts related
to the operation of registered organizations, licenses and permits under
this chapter shall be lawful and shall not be  deemed  unenforceable  on
the  basis  that  the  actions  permitted  pursuant to the registration,
license or permit are prohibited by federal law.
  2. The following actions are not unlawful as provided under this chap-
ter, shall not be an offense under any state or local law, and shall not
result in any civil fine, seizure, or forfeiture of assets  against  any
person acting in accordance with this chapter:
  (a)  Actions  of a registered organization, licensee, or permittee, or
the employees or agents of such  registered  organization,  licensee  or
permittee,  as  permitted  by this chapter and consistent with rules and
regulations of the office, pursuant to a valid registration, license  or
permit issued by the office.
  (b)  Actions  of  those  who allow property to be used by a registered
organization, licensee, or permittee, or the employees or agents of such
registered organization, licensee or permittee,  as  permitted  by  this
chapter  and consistent with rules and regulations of the office, pursu-
ant to a valid registration, license or permit issued by the office.
  (c) Actions of any person or entity, their employees, or their  agents
providing a service to a registered organization, licensee, permittee or
a  potential registered organization, licensee, or permittee, as permit-
ted by this chapter and consistent with rules  and  regulations  of  the
office, relating to the formation of a business.
  (d)  The  purchase,  possession,  or  consumption of cannabis, medical
cannabis and hemp, as permitted by  this  chapter  and  consistent  with
rules and regulations of the office, obtained from a validly registered,
licensed or permitted retailer.
  §  137. Review by courts.  1. The following actions by the office, and
only the following actions by the office, shall be subject to review  by
the supreme court in the manner provided in article seventy-eight of the
civil practice law and rules:
  (a)  Refusal  by  the  office  to  issue a registration, license, or a
permit.
  (b) The revocation, cancellation  or  suspension  of  a  registration,
license, or permit by the office.
  (c) The failure or refusal by the office to render a decision upon any
application  or  hearing submitted to or held by the office within sixty
days after such submission or hearing.
  (d) The transfer by the office of a registration, license,  or  permit
to any other entity or premises, or the failure or refusal by the office
to approve such a transfer.
  (e) Refusal to approve alteration of premises.
  (f)  Refusal to approve a corporate change in stockholders, stockhold-
ings, officers or directors.
  2. No stay shall be granted pending the determination of  such  matter
except on notice to the office and only for a period of less than thirty
days. In no instance shall a stay be granted where the office has issued

S. 1509                            158                           A. 2009

a  summary  suspension  of  a  registration,  license, or permit for the
protection of the public health, safety, and welfare.
  § 138. Illicit cannabis.  1. "Illicit cannabis" means and includes any
cannabis  product,  medical cannabis or hemp cannabis owned, cultivated,
distributed, bought, sold, packaged, rectified, blended, treated, forti-
fied, mixed, processed, warehoused,  possessed  or  transported,  or  on
which  any tax required to have been paid under any applicable state law
has not been paid.
  2. Any person who shall knowingly possess or have  under  his  or  her
control any illicit cannabis is guilty of a misdemeanor.
  3.  Any  person  who shall knowingly barter or exchange with, or sell,
give or offer to sell or to give another any illicit cannabis is  guilty
of a misdemeanor.
  4.  Any  person  who shall possess or have under his or her control or
transport any illicit cannabis with intent to barter or  exchange  with,
or  to sell or give to another the same or any part thereof is guilty of
a misdemeanor. Such intent is presumptively established  by  proof  that
the  person  knowingly  possessed or had under his or her control one or
more ounces of illicit cannabis. This presumption may be rebutted.
  5. Any person who, being the owner, lessee, or occupant of  any  room,
shed,  tenement,  booth  or  building, float or vessel, or part thereof,
knowingly permits the same to be used for the  cultivation,  processing,
distribution, purchase, sale, warehousing, transportation, or storage of
any illicit cannabis, is guilty of a misdemeanor.
  §  139.  Injunction for unlawful manufacturing, sale or consumption of
cannabis.  1. If any person shall engage or participate or be  about  to
engage  or  participate  in  the  cultivation, production, distribution,
traffic, or sale of cannabis products, medical cannabis or hemp cannabis
in this state without obtaining the appropriate  registration,  license,
or  permit  therefor,  or  shall  traffic  in cannabis products, medical
cannabis or hemp cannabis contrary to any provision of this chapter,  or
otherwise  unlawfully,  or  shall  traffic in illegal cannabis products,
medical cannabis or hemp cannabis, or, operating a place for  profit  or
pecuniary  gain,  with  a  capacity for the assemblage of twenty or more
persons, shall permit a person or persons  to  come  to  such  place  of
assembly  for  the purpose of consuming cannabis products without having
the appropriate license or permit therefor, the  office  may  present  a
verified  petition  or  complaint to a justice of the supreme court at a
special term of the supreme court of the judicial district in which such
city, village or town is situated, for an order  enjoining  such  person
engaging  or  participating  in  such  activity or from carrying on such
business. Such petition or complaint shall state the  facts  upon  which
such  application  is  based.  Upon  the presentation of the petition or
complaint, the justice or court may grant an order temporarily restrain-
ing any person from continuing to engage in conduct as specified in  the
petition or complaint, and shall grant an order requiring such person to
appear  before  such justice or court at or before a special term of the
supreme court in such judicial district on the  day  specified  therein,
not  more  than  ten  days after the granting thereof, to show cause why
such person should not be permanently enjoined from engaging or  partic-
ipating  in such activity or from carrying on such business, or why such
person should not be enjoined from carrying on such business contrary to
the provisions of this chapter. A copy of such petition or complaint and
order shall be served upon the person, in the manner  directed  by  such
order,  not  less  than three days before the return day thereof. On the
day specified in such order, the justice or court before whom  the  same

S. 1509                            159                           A. 2009

is  returnable  shall  hear the proofs of the parties and may, if deemed
necessary or proper, take testimony in relation to  the  allegations  of
the  petition  or  complaint.  If the justice or court is satisfied that
such person is about to engage or participate in the unlawful traffic in
cannabis,  medical  cannabis  or  hemp cannabis or has unlawfully culti-
vated, processed, or sold cannabis products, medical  cannabis  or  hemp
cannabis  without  having obtained a registration or license or contrary
to the provisions of this chapter, or has trafficked in  illegal  canna-
bis,  or,  is  operating or is about to operate such place for profit or
pecuniary gain, with such capacity, and has permitted  or  is  about  to
permit  a  person  or  persons to come to such place of assembly for the
purpose of consuming cannabis products without having  such  appropriate
license, an order shall be granted enjoining such person from thereafter
engaging  or  participating in or carrying on such activity or business.
If, after the entry of such an order in the county clerk's office of the
county in which the principal place of business of  the  corporation  or
partnership  is  located, or in which the individual so enjoined resides
or conducts such business, and the service of a copy thereof  upon  such
person,  or  such  substituted  service  as  the  court may direct, such
person, partnership or corporation shall, in violation  of  such  order,
cultivate, process, distribute or sell cannabis products, medical canna-
bis  or hemp cannabis, or illegal cannabis products, medical cannabis or
hemp cannabis, or permit a person or persons to come to  such  place  of
assembly  for  the purpose of consuming cannabis products, such activity
shall be deemed a contempt of court and  be  punishable  in  the  manner
provided  by the judiciary law, and, in addition to any such punishment,
the justice or court before whom or which the petition or  complaint  is
heard,  may,  in his or its discretion, order the seizure and forfeiture
of any cannabis products and any fixtures, equipment and  supplies  used
in the operation or promotion of such illegal activity and such property
shall  be subject to forfeiture pursuant to law. Costs upon the applica-
tion for such injunction may be awarded in  favor  of  and  against  the
parties  thereto  in  such  sums  as in the discretion of the justice or
court before whom or which the petition or complaint is heard  may  seem
proper.
  2. The owner, lessor and lessee of a building, erection or place where
cannabis  products,  medical  cannabis  or  hemp  cannabis is unlawfully
cultivated, processed, distributed, sold, consumed or  permitted  to  be
unlawfully  cultivated,  processed, distributed, sold or consumed may be
made a respondent or defendant in the proceeding or action.
  § 140. Persons forbidden to traffic cannabis; certain officials not to
be interested in manufacture  or  sale  of  cannabis  products.  1.  The
following are forbidden to traffic in cannabis:
  (a)  Except as provided in subdivision one-a of this section, a person
who has been convicted of a felony, unless subsequent to such conviction
such person shall have received an executive  pardon  therefor  removing
this disability, a certificate of good conduct granted by the department
of  corrections  and  community  supervision, or a certificate of relief
from disabilities granted by the department of corrections and community
supervision or a court of this state pursuant to the provisions of arti-
cle twenty-three of the correction law to remove  the  disability  under
this section because of such conviction;
  (b) A person under the age of twenty-one years;
  (c)  A  person  who  is not a citizen of the United States or an alien
lawfully admitted for permanent residence in the United States;

S. 1509                            160                           A. 2009

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

S. 1509                            161                           A. 2009

cant a fee equivalent to the expenses of  an  appropriate  investigation
under  this  subdivision. For any conviction rendered by a court of this
state, the office may request the corporation,  if  the  corporation  is
eligible  for  a certificate of relief from disabilities, to seek such a
certificate from the court which rendered the conviction and  to  submit
such a certificate as part of the office's discretionary review process.
  2.  Except as may otherwise be provided for in regulation, it shall be
unlawful  for  any  police  commissioner,  police  inspector,   captain,
sergeant,  roundsman,  patrolman or other police official or subordinate
of any police department in the state, to be either  directly  or  indi-
rectly  interested in the cultivation, processing, distribution, or sale
of cannabis products or to offer for sale, or recommend  to  any  regis-
tered  organization  or licensee any cannabis products. A person may not
be denied any registration or license granted under  the  provisions  of
this chapter solely on the grounds of being the spouse of a public serv-
ant  described  in this section. The solicitation or recommendation made
to any registered organization or licensee,  to  purchase  any  cannabis
products by any police official or subordinate as hereinabove described,
shall be presumptive evidence of the interest of such official or subor-
dinate in the cultivation, processing, distribution, or sale of cannabis
products.
  3. No elective village officer shall be subject to the limitations set
forth  in  subdivision  two of this section unless such elective village
officer shall be assigned duties directly relating to the  operation  or
management of the police department.
  §  141. Access to criminal history information through the division of
criminal justice services.   In connection with  the  administration  of
this  chapter,  the executive director is authorized to request, receive
and review criminal history information through the division of criminal
justice services with respect to  any  person  seeking  a  registration,
license,  permit  or  authorization to cultivate, process, distribute or
sell medical cannabis, adult use cannabis or hemp cannabis. At the exec-
utive director's request, each person, member, principal and/or  officer
of  the  applicant shall submit to the office his or her fingerprints in
such form and in such manner as  specified  by  the  division,  for  the
purpose  of  conducting a criminal history search and returning a report
thereon in accordance with the procedures and  requirements  established
by the division pursuant to the provisions of article thirty-five of the
executive  law,  which shall include the payment of the prescribed proc-
essing fees for the cost of the division's full search and retain proce-
dures and a national criminal history record check. The executive direc-
tor, or his or her designee, shall  submit  such  fingerprints  and  the
processing fee to the division. The division shall forward to the execu-
tive director a report with respect to the applicant's previous criminal
history, if any, or a statement that the applicant has no previous crim-
inal history according to its files. Fingerprints submitted to the divi-
sion  pursuant  to this subdivision may also be submitted to the federal
bureau of investigation for a national criminal history record check. If
additional copies of fingerprints  are  required,  the  applicant  shall
furnish them upon request.
  § 3. Intentionally omitted.
  § 4. Section 3302 of the public health law, as added by chapter 878 of
the  laws  of  1972,  subdivisions  1,  14, 16, 17 and 27 as amended and
subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23,  24,
25,  26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998,
subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39

S. 1509                            162                           A. 2009

and 40 as added by chapter 178 of the laws of  2010,  paragraph  (a)  of
subdivision  20, the opening paragraph of subdivision 22 and subdivision
29 as amended by chapter 163 of the laws  of  1973,  subdivision  31  as
amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
vision  41 as added by section 6 of part A of chapter 447 of the laws of
2012, and subdivisions 42 and 43 as added by section 13  of  part  D  of
chapter 60 of the laws of 2014, is amended to read as follows:
  §  3302.  Definitions  of terms of general use in this article. Except
where  different  meanings  are  expressly   specified   in   subsequent
provisions of this article, the following terms have the following mean-
ings:
  1.  "Addict" means a person who habitually uses a controlled substance
for a non-legitimate or unlawful use, and who by reason of such  use  is
dependent thereon.
  2.   "Administer"   means  the  direct  application  of  a  controlled
substance, whether by injection, inhalation,  ingestion,  or  any  other
means, to the body of a patient or research subject.
  3.  "Agent" means an authorized person who acts on behalf of or at the
direction of a manufacturer, distributor, or dispenser. No person may be
authorized to so act if under title  VIII  of  the  education  law  such
person  would  not  be  permitted to engage in such conduct. It does not
include a common or contract carrier, public warehouseman,  or  employee
of  the  carrier  or  warehouseman  when  acting in the usual and lawful
course of the carrier's or warehouseman's business.
  4. ["Concentrated Cannabis" means
  (a) the separated resin, whether crude or purified,  obtained  from  a
plant of the genus Cannabis; or
  (b)  a  material,  preparation,  mixture,  compound or other substance
which contains more than two and one-half percent by weight  of  delta-9
tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
terpene numbering system.
  5.] "Controlled substance" means a substance or substances  listed  in
section thirty-three hundred six of this [chapter] TITLE.
  [6.]  5.  "Commissioner"  means commissioner of health of the state of
New York.
  [7.] 6. "Deliver" or "delivery"  means  the  actual,  constructive  or
attempted transfer from one person to another of a controlled substance,
whether or not there is an agency relationship.
  [8.]  7.  "Department"  means the department of health of the state of
New York.
  [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
mate user or research subject by lawful means, including by means of the
internet, and includes the packaging, labeling, or compounding necessary
to prepare the substance for such delivery.
  [10.] 9. "Distribute" means to deliver a controlled substance, includ-
ing by means of the internet, other than by administering or dispensing.
  [11.] 10. "Distributor" means a person who  distributes  a  controlled
substance.
  [12.]  11.  "Diversion" means manufacture, possession, delivery or use
of a controlled substance by a person or in a  manner  not  specifically
authorized by law.
  [13.] 12. "Drug" means
  (a) substances recognized as drugs in the official United States Phar-
macopoeia,  official  Homeopathic Pharmacopoeia of the United States, or
official National Formulary, or any supplement to any of them;

S. 1509                            163                           A. 2009

  (b) substances intended for use in the  diagnosis,  cure,  mitigation,
treatment, or prevention of disease in man or animals; and
  (c) substances (other than food) intended to affect the structure or a
function  of  the  body of man or animal. It does not include devices or
their components, parts, or accessories.
  [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
United States Department of Justice, or its successor agency.
  [15.]  14. "Federal controlled substances act" means the Comprehensive
Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
any  act  or  acts  amendatory  or  supplemental  thereto or regulations
promulgated thereunder.
  [16.] 15. "Federal registration number" means such number assigned  by
the  Federal agency to any person authorized to manufacture, distribute,
sell, dispense or administer controlled substances.
  [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
repeated  use of any controlled substance for non-legitimate or unlawful
use is in danger of becoming, dependent upon such substance.
  [18.] 17.  "Institutional  dispenser"  means  a  hospital,  veterinary
hospital,  clinic,  dispensary,  maternity  home,  nursing  home, mental
hospital or similar facility approved and certified by the department as
authorized to  obtain  controlled  substances  by  distribution  and  to
dispense and administer such substances pursuant to the order of a prac-
titioner.
  [19.]  18.  "License"  means  a  written  authorization  issued by the
department or the New York  state  department  of  education  permitting
persons  to  engage  in  a specified activity with respect to controlled
substances.
  [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
gation,   compounding,   cultivation,  conversion  or  processing  of  a
controlled substance, either directly or  indirectly  or  by  extraction
from substances of natural origin, or independently by means of chemical
synthesis, or by a combination of extraction and chemical synthesis, and
includes  any  packaging  or repackaging of the substance or labeling or
relabeling of its container, except that this term does not include  the
preparation,   compounding,   packaging  or  labeling  of  a  controlled
substance:
  (a) by a practitioner as an incident to his administering or  dispens-
ing  of  a  controlled substance in the course of his professional prac-
tice; or
  (b) by a practitioner, or by his authorized  agent  under  his  super-
vision, for the purpose of, or as an incident to, research, teaching, or
chemical analysis and not for sale; or
  (c)  by  a pharmacist as an incident to his dispensing of a controlled
substance in the course of his professional practice.
  [21. "Marihuana" means all parts of the plant of the  genus  Cannabis,
whether  growing or not; the seeds thereof; the resin extracted from any
part of the plant; and every compound,  manufacture,  salt,  derivative,
mixture,  or  preparation  of the plant, its seeds or resin. It does not
include the mature stalks of the plant, fiber produced from the  stalks,
oil  or cake made from the seeds of the plant, any other compound, manu-
facture, salt, derivative, mixture, or preparation of the mature  stalks
(except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
sterilized seed of the plant which is incapable of germination.
  22.] 20. "Narcotic drug" means any of the following, whether  produced
directly  or  indirectly  by  extraction  from  substances  of vegetable

S. 1509                            164                           A. 2009

origin, or independently by means of chemical synthesis, or by a  combi-
nation of extraction and chemical synthesis:
  (a)  opium and opiate, and any salt, compound, derivative, or prepara-
tion of opium or opiate;
  (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
which  is  chemically equivalent or identical with any of the substances
referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but  not
including the isoquinoline alkaloids of opium;
  (c) opium poppy and poppy straw.
  [23.]  21. "Opiate" means any substance having an addiction-forming or
addiction-sustaining liability similar to morphine or being  capable  of
conversion  into a drug having addiction-forming or addiction-sustaining
liability. It  does  not  include,  unless  specifically  designated  as
controlled  under section [3306] THIRTY-THREE HUNDRED SIX of this [arti-
cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
its salts (dextromethorphan). It does include its racemic and  levorota-
tory forms.
  [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
somniferum L., except its seeds.
  [25.] 23. "Person" means individual, institution, corporation, govern-
ment or governmental subdivision  or  agency,  business  trust,  estate,
trust, partnership or association, or any other legal entity.
  [26.]  24. "Pharmacist" means any person licensed by the state depart-
ment of education to practice pharmacy.
  [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
York  state  board  of  pharmacy  and registered with the Federal agency
pursuant to the federal controlled substances act.
  [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
opium poppy, after mowing.
  [29.] 27. "Practitioner" means:
  A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
gator, or other person licensed, or  otherwise  permitted  to  dispense,
administer or conduct research with respect to a controlled substance in
the  course  of  a  licensed  professional practice or research licensed
pursuant to this article. Such person shall be deemed  a  "practitioner"
only  as  to such substances, or conduct relating to such substances, as
is permitted by his license, permit or otherwise permitted by law.
  [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
prescription,  permitting an ultimate user lawfully to obtain controlled
substances  from  any  person  authorized  by  law  to   dispense   such
substances.
  [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
prescription, an electronic prescription, an oral prescription[,] OR  an
out-of-state prescription[, or any one].
  [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
er, or offer or agree to do the same.
  [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
possesses a controlled substance for his own use or the use by a  member
of  his  household  or  for an animal owned by him or in his custody. It
shall also mean and include a person designated, by a practitioner on  a
prescription, to obtain such substance on behalf of the patient for whom
such substance is intended.
  [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
cations facilities which comprise the worldwide network of networks that
employ a set of industry standards and protocols, or any predecessor  or
successor  protocol  to  such  protocol,  to exchange information of all

S. 1509                            165                           A. 2009

kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
networks,  whether  private  or  public, used to transmit information by
electronic means.
  [35.]  33.  "By  means  of  the  internet"  means  any sale, delivery,
distribution, or dispensing of a  controlled  substance  that  uses  the
internet,  is initiated by use of the internet or causes the internet to
be used.
  [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
in the United States that sells, delivers or  dispenses,  or  offers  to
sell,  deliver,  or  dispense,  a  controlled  substance by means of the
internet.
  [37.] 35. "Electronic prescription" means a prescription  issued  with
an  electronic  signature and transmitted by electronic means in accord-
ance with regulations of the commissioner and the commissioner of educa-
tion and consistent with federal requirements. A prescription  generated
on an electronic system that is printed out or transmitted via facsimile
is  not  considered  an  electronic  prescription  and  must be manually
signed.
  [38.] 36. "Electronic" means of or relating to technology having elec-
trical, digital, magnetic, wireless, optical, electromagnetic or similar
capabilities. "Electronic" shall not include facsimile.
  [39.] 37.  "Electronic  record"  means  a  paperless  record  that  is
created,  generated,  transmitted,  communicated,  received or stored by
means of electronic equipment and includes the preservation,  retrieval,
use  and  disposition in accordance with regulations of the commissioner
and the commissioner of education and in compliance with federal law and
regulations.
  [40.] 38. "Electronic signature" means an electronic sound, symbol, or
process, attached to or logically associated with an  electronic  record
and  executed or adopted by a person with the intent to sign the record,
in accordance with regulations of the commissioner and the  commissioner
of education.
  [41.]  39.  "Registry"  or  "prescription monitoring program registry"
means the prescription monitoring program registry established  pursuant
to section thirty-three hundred forty-three-a of this article.
  [42.]  40. "Compounding" means the combining, admixing, mixing, dilut-
ing, pooling, reconstituting, or otherwise altering of a  drug  or  bulk
drug  substance to create a drug with respect to an outsourcing facility
under section 503B of the  federal  Food,  Drug  and  Cosmetic  Act  and
further defined in this section.
  [43.] 41. "Outsourcing facility" means a facility that:
  (a)  is  engaged  in  the  compounding  of sterile drugs as defined in
section sixty-eight hundred two of the education law;
  (b) is currently registered as an  outsourcing  facility  pursuant  to
article one hundred thirty-seven of the education law; and
  (c)  complies  with  all  applicable requirements of federal and state
law, including the Federal Food, Drug and Cosmetic Act.
  Notwithstanding any other provision of law to the  contrary,  when  an
outsourcing  facility  distributes  or  dispenses any drug to any person
pursuant to a prescription, such outsourcing facility shall be deemed to
be providing pharmacy services and shall be subject to all  laws,  rules
and regulations governing pharmacies and pharmacy services.
  §  5.  Paragraphs  13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
26, 27, 28, 29, 30, 31 and 32  of  subdivision  (d)  of  schedule  I  of
section  3306  of  the public health law, paragraphs 13, 14, 15, 16, 17,
18, 19, 20, 21, 22, 23 and 24 as added by chapter 664  of  the  laws  of

S. 1509                            166                           A. 2009

1985,  paragraphs  25,  26, 27, 28, 29 and 30 as added by chapter 589 of
the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
laws of 2006, are amended to read as follows:
  (13) [Marihuana.
  (14)] Mescaline.
  [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
  [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
not, the seeds thereof, any extract from any part  of  such  plant,  and
every  compound, manufacture, salts, derivative, mixture, or preparation
of such plant, its seeds or extracts.
  [(17)] (16) N-ethyl-3-piperidyl benzilate.
  [(18)] (17) N-methyl-3-piperidyl benzilate.
  [(19)] (18) Psilocybin.
  [(20)] (19) Psilocyn.
  [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT
DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of  the  substances
contained  in the plant, or in the resinous extractives of cannabis, sp.
and/or synthetic substances, derivatives, and their isomers with similar
chemical structure and pharmacological activity such as the following:
  [/\] DELTA 1 cis or  trans  tetrahydrocannabinol,  and  their  optical
isomers
  [/\]  DELTA  6  cis  or  trans tetrahydrocannabinol, and their optical
isomers
  [/\] DELTA 3, 4 cis or trans  tetrahydrocannabinol,  and  its  optical
isomers  (since  nomenclature of these substances is not internationally
standardized, compounds of these  structures,  regardless  of  numerical
designation of atomic positions covered).
  [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
  [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
  [(24)] (23) Thiophene analog of phencyclidine.  Some  trade  or  other
names:     1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog  of
phencyclidine, TPCP, TCP.
  [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
  [(26)]  (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known   as
N-ethyl-alpha-methyl-3,4  (methylenedioxy)  phenethylamine, N-ethyl MDA,
MDE, MDEA.
  [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
N-hydroxy MDA.
  [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
names: TCPY.
  [(29)] (28)   Alpha-ethyltryptamine.   Some   trade  or  other  names:
etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
3- (2-aminobutyl) indole; Alpha-ET or AET.
  [(30)]  (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or other
names: DOET.
  [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade  or  other
names:   2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;  alpha-desmethyl
DOB; 2C-B, Nexus.
  [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
optical isomers, salts and salts of isomers.

S. 1509                            167                           A. 2009

  § 6. Title 5-A of article 33 of the public health law is REPEALED.
  § 7. Section 3382 of the public health law, as added by chapter 878 of
the laws of 1972, is amended to read as follows:
  §  3382. Growing of the plant known as Cannabis by unlicensed persons.
A person who, without being licensed so to  do  under  this  article  OR
ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW, grows the plant of the
genus  Cannabis  or  knowingly  allows  it  to  grow on his land without
destroying the same, shall be guilty of a class A misdemeanor.
  § 8. Subdivision 1 of section 3397-b of  the  public  health  law,  as
added by chapter 810 of the laws of 1980, is amended to read as follows:
  1.  ["Marijuana"]  "CANNABIS" means [marijuana] CANNABIS as defined in
[section thirty-three hundred two of this chapter] SUBDIVISION THREE  OF
SECTION  THREE OF THE CANNABIS LAW and shall also include tetrahydrocan-
nabinols or a chemical derivative of tetrahydrocannabinol.
  § 9. Subdivision 8 of section 1399-n of  the  public  health  law,  as
amended  by  chapter  13  of  the  laws  of  2003, is amended to read as
follows:
  8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
any other matter or substance which contains tobacco OR CANNABIS.
  §  10.  Subdivisions  5,  6  and 9 of section 220.00 of the penal law,
subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
6 as amended by chapter 1051 of the laws of 1973 and  subdivision  9  as
amended by chapter 664 of the laws of 1985, are amended and a new subdi-
vision 21 is added to read as follows:
  5.  "Controlled  substance"  means any substance listed in schedule I,
II, III, IV or V of section  thirty-three  hundred  six  of  the  public
health law other than [marihuana] CANNABIS AS DEFINED IN SUBDIVISION SIX
OF  THIS  SECTION,  but  including  concentrated  cannabis as defined in
[paragraph (a) of subdivision four of section thirty-three  hundred  two
of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION.
  6. ["Marihuana"] "CANNABIS" means ["marihuana" or "concentrated canna-
bis"  as  those terms are defined in section thirty-three hundred two of
the public health law] ALL PARTS OF THE PLANT  OF  THE  GENUS  CANNABIS,
WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
(EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT  DOES
NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  9. "Hallucinogen" means any controlled substance  listed  in  schedule
I(d)  (5),  [(18), (19), (20), (21) and (22)] (17), (18), (19), (20) AND
(21).
  21. "CONCENTRATED CANNABIS" MEANS: (A) THE  SEPARATED  RESIN,  WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A
MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE  WHICH
CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI-
NOL, OR ITS ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING  SYSTEM,  OR  DELTA-1
TETRAHYDROCANNABINOL  OR  ITS  ISOMER, DELTA 1 (6) MONOTERPENE NUMBERING
SYSTEM.
  § 11. Subdivision 4 of section 220.06 of the penal law, as amended  by
chapter 537 of the laws of 1998, is amended to read as follows:

S. 1509                            168                           A. 2009

  4.  one  or  more  preparations,  compounds,  mixtures  or  substances
containing concentrated cannabis as defined in [paragraph (a) of  subdi-
vision  four  of  section  thirty-three hundred two of the public health
law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE  and  said
preparations,  compounds,  mixtures  or  substances  are of an aggregate
weight of one-fourth ounce or more; or
  § 12. Subdivision 10 of section 220.09 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:
  10. one  or  more  preparations,  compounds,  mixtures  or  substances
containing  concentrated cannabis as defined in [paragraph (a) of subdi-
vision four of section thirty-three hundred two  of  the  public  health
law]  SUBDIVISION  TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said
preparations, compounds, mixtures or  substances  are  of  an  aggregate
weight of one ounce or more; or
  §  13. Subdivision 3 of section 220.34 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:
  3. concentrated cannabis as defined in [paragraph (a)  of  subdivision
four  of  section  thirty-three  hundred  two  of the public health law]
SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or
  § 14. Section 220.50 of the penal law, as amended by  chapter  627  of
the laws of 1990, is amended to read as follows:
§ 220.50 Criminally using drug paraphernalia in the second degree.
  A  person  is  guilty  of  criminally  using drug paraphernalia in the
second degree when he knowingly possesses or sells:
  1. Diluents, dilutants or adulterants, including but not  limited  to,
any  of the following: quinine hydrochloride, mannitol, mannite, lactose
or dextrose, adapted for the dilution of narcotic  drugs  or  stimulants
under  circumstances  evincing  an intent to use, or under circumstances
evincing knowledge that  some  person  intends  to  use,  the  same  for
purposes  of  unlawfully mixing, compounding, or otherwise preparing any
narcotic  drug  or  stimulant,  OTHER  THAN  CANNABIS  OR   CONCENTRATED
CANNABIS; or
  2. Gelatine capsules, glassine envelopes, vials, capsules or any other
material suitable for the packaging of individual quantities of narcotic
drugs  or  stimulants  under circumstances evincing an intent to use, or
under circumstances evincing knowledge that some person intends to  use,
the  same  for  the  purpose  of  unlawfully manufacturing, packaging or
dispensing of any narcotic drug or stimulant,  OTHER  THAN  CANNABIS  OR
CONCENTRATED CANNABIS; or
  3. Scales and balances used or designed for the purpose of weighing or
measuring  controlled substances, under circumstances evincing an intent
to use, or under  circumstances  evincing  knowledge  that  some  person
intends  to use, the same for purpose of unlawfully manufacturing, pack-
aging or dispensing of any narcotic drug or stimulant, OTHER THAN CANNA-
BIS OR CONCENTRATED CANNABIS.
  Criminally using drug paraphernalia in the second degree is a class  A
misdemeanor.
  § 15. Section 221.00 of the penal law, as amended by chapter 90 of the
laws of 2014, is amended to read as follows:
§ 221.00 [Marihuana] CANNABIS; definitions.
  Unless  the context in which they are used clearly otherwise requires,
the terms occurring in this article shall have the same meaning ascribed
to them in article two hundred twenty of this chapter. Any act  that  is
lawful under [title five-A of article thirty-three of the public health]
ARTICLES  THREE, FOUR OR FIVE, OF THE CANNABIS law is not a violation of
this article.

S. 1509                            169                           A. 2009

  § 15-a. Section 221.00 of the penal law, as added by  chapter  360  of
the laws of 1977, is amended to read as follows:
§ 221.00 [Marihuana] CANNABIS; definitions.
  Unless  the context in which they are used clearly otherwise requires,
the terms occurring in this article shall have the same meaning ascribed
to them in article two hundred twenty of this chapter.
  § 16. Section 221.05 of the penal law, as added by chapter 360 of  the
laws of 1977, is amended to read as follows:
§ 221.05 Unlawful possession of [marihuana] CANNABIS.
  A person is guilty of unlawful possession of [marihuana] CANNABIS when
he OR SHE knowingly and unlawfully possesses [marihuana.]:
  1. CANNABIS AND IS LESS THAN TWENTY-ONE YEARS OF AGE; OR
  2.  CANNABIS  IN  A PUBLIC PLACE, AS DEFINED IN SECTION 240.00 OF THIS
PART, AND SUCH CANNABIS IS BURNING.
  Unlawful possession of [marihuana] CANNABIS is a violation  punishable
only  by  a  fine  of not more than one hundred FIFTY dollars[. However,
where the defendant has previously been convicted of an offense  defined
in  this  article  or  article 220 of this chapter, committed within the
three years immediately preceding such violation, it shall be punishable
(a) only by a fine of not more than two hundred dollars, if the  defend-
ant  was  previously convicted of one such offense committed during such
period, and (b) by a fine of not more than two hundred fifty dollars  or
a  term  of  imprisonment  not in excess of fifteen days or both, if the
defendant was previously convicted of two such offenses committed during
such period] WHEN SUCH POSSESSION IS BY A PERSON  LESS  THAN  TWENTY-ONE
YEARS  OF  AGE  AND  OF AN AGGREGATE WEIGHT OF LESS THAN ONE-HALF OF ONE
OUNCE OR A  FINE  OF  NOT  MORE  THAN  ONE  HUNDRED  DOLLARS  WHEN  SUCH
POSSESSION  IS  BY  A PERSON LESS THAN TWENTY-ONE YEARS OF AGE AND OF AN
AGGREGATE WEIGHT MORE THAN ONE-HALF OF ONE OUNCE BUT NOT MORE  THAN  ONE
OUNCE.  UNLAWFUL  POSSESSION OF MARIJUANA IS PUNISHABLE BY A FINE OF NOT
MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS WHEN SUCH POSSESSION IS  IN  A
PUBLIC  PLACE  AND  SUCH  CANNABIS  IS BURNING. THE TERM BURNING IN THIS
SECTION SHALL HAVE THE SAME MEANING AS THE TERM  VAPING  AS  DEFINED  IN
SUBDIVISION  EIGHT  OF  SECTION  THIRTEEN  HUNDRED  NINETY-NINE-N OF THE
PUBLIC HEALTH LAW.
  § 17. Section 221.15 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.15 Criminal possession of [marihuana]  CANNABIS  in  the  [fourth]
           THIRD degree.
  A  person  is guilty of criminal possession of [marihuana] CANNABIS in
the [fourth] THIRD degree  when  he  OR  SHE  knowingly  and  unlawfully
possesses  [one  or more preparations, compounds, mixtures or substances
containing  marihuana  and  the  preparations,  compounds,  mixtures  or
substances  are  of]  an  aggregate weight of more than [two ounces] ONE
OUNCE OF CANNABIS OR MORE THAN FIVE GRAMS OF CONCENTRATED CANNABIS.
  Criminal possession of [marihuana]  CANNABIS  in  the  [fourth]  THIRD
degree  is a [class A misdemeanor] VIOLATION PUNISHABLE BY A FINE OF NOT
MORE THAN ONE  HUNDRED  TWENTY-FIVE  DOLLARS.  THE  PROVISIONS  OF  THIS
SECTION  SHALL  NOT APPLY TO CERTIFIED PATIENTS OR DESIGNATED CAREGIVERS
AS LAWFULLY REGISTERED UNDER ARTICLE THREE OF THE CANNABIS LAW.
  § 18. Section 221.20 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.20 Criminal possession of  [marihuana]  CANNABIS  in  the  [third]
           SECOND degree.

S. 1509                            170                           A. 2009

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

S. 1509                            171                           A. 2009

AGGREGATE  WEIGHT  OF  MORE  THAN  ONE  OUNCE OR MORE THAN FIVE GRAMS OF
CANNABIS CONCENTRATE.
  Criminal sale of [marihuana] CANNABIS in the fourth degree is a [class
A] misdemeanor PUNISHABLE BY A FINE OF NOT MORE THAN THE GREATER OF FIVE
HUNDRED DOLLARS OR TWO TIMES THE VALUE OF THE SALE OR A MAXIMUM OF THREE
MONTHS IMPRISONMENT, OR BOTH.
  §  23.  Section  221.45 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of  the
laws of 1995, is amended to read as follows:
§ 221.45 Criminal sale of [marihuana] CANNABIS in the third degree.
  A  person  is  guilty  of criminal sale of [marihuana] CANNABIS in the
third degree when he OR SHE knowingly and unlawfully sells [one or  more
preparations, compounds, mixtures or substances containing marihuana and
the  preparations, compounds, mixtures or substances are of an aggregate
weight of more than twenty-five grams] FOUR OUNCES OF CANNABIS  OR  MORE
THAN TWENTY GRAMS OF CONCENTRATED CANNABIS.
  Criminal  sale of [marihuana] CANNABIS in the third degree is a [class
E felony] MISDEMEANOR PUNISHABLE BY A FINE OF NOT MORE THAN THE  GREATER
OF  ONE THOUSAND DOLLARS OR TWO TIMES THE VALUE OF THE SALE OR A MAXIMUM
OF ONE YEAR IMPRISONMENT OR BOTH.
  § 24. Section 221.50 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.50 Criminal sale of [marihuana] CANNABIS in the second degree.
  A person is guilty of criminal sale of  [marihuana]  CANNABIS  in  the
second degree when he knowingly and unlawfully sells [one or more prepa-
rations,  compounds, mixtures or substances containing marihuana and the
preparations, compounds, mixtures or  substances  are  of  an  aggregate
weight of] more than [four ounces, or knowingly and unlawfully sells one
or more preparations, compounds, mixtures or substances containing mari-
huana  to  a  person  less than eighteen years of age] SIXTEEN OUNCES OF
CANNABIS OR MORE THAN EIGHTY  GRAMS  OF  CONCENTRATED  CANNABIS  OR  ANY
AMOUNT  OF CANNABIS OR CONCENTRATED CANNABIS TO ANY PERSON UNDER TWENTY-
ONE YEARS OF AGE.
  Criminal sale of [marihuana] CANNABIS in the second degree is a  class
D felony.
  §  25.  Section  221.55 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of  the
laws of 1995, is amended to read as follows:
§ 221.55 Criminal sale of [marihuana] CANNABIS in the first degree.
  A  person  is  guilty  of criminal sale of [marihuana] CANNABIS in the
first degree when he knowingly and unlawfully sells [one or more  prepa-
rations,  compounds, mixtures or substances containing marihuana and the
preparations, compounds, mixtures or  substances  are  of  an  aggregate
weight  of]  more  than [sixteen] SIXTY-FOUR ounces OF CANNABIS OR THREE
HUNDRED AND TWENTY GRAMS OF CANNABIS CONCENTRATE.
  Criminal sale of [marihuana] CANNABIS in the first degree is a class C
felony.
  § 26. The penal law is amended by adding a new section 221.60 to  read
as follows:
§ 221.60 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION.
  THE  PROVISIONS  OF  THIS ARTICLE AND OF ARTICLE TWO HUNDRED TWENTY OF
THIS TITLE SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM  CRIMINAL  PENAL-
TIES  PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING, MANUFAC-
TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING CANNABIS  OR

S. 1509                            172                           A. 2009

CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI-
ANCE WITH ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW.
  §  27.  Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50
of the criminal procedure law, paragraphs (i) and (j) as added by  chap-
ter  905  of  the laws of 1977, paragraph (k) as added by chapter 835 of
the laws of 1977 and as relettered by chapter 192 of the  laws  of  1980
and  such  subdivision as renumbered by chapter 142 of the laws of 1991,
are amended to read as follows:
  (i) prior to the filing of an accusatory instrument in a local  crimi-
nal  court  against  such person, the prosecutor elects not to prosecute
such person. In such event, the prosecutor shall serve  a  certification
of  such  disposition upon the division of criminal justice services and
upon the appropriate police department or law enforcement agency  which,
upon  receipt  thereof,  shall  comply with the provisions of paragraphs
(a), (b), (c) and (d) of subdivision one of this  section  in  the  same
manner  as  is  required  thereunder with respect to an order of a court
entered pursuant to said subdivision one[.]; OR
  (j) following the arrest of such person, the arresting police  agency,
prior  to  the  filing  of  an accusatory instrument in a local criminal
court but subsequent to the forwarding of a copy of the fingerprints  of
such  person to the division of criminal justice services, elects not to
proceed further. In such event, the head of the arresting police  agency
shall  serve  a  certification  of such disposition upon the division of
criminal justice services which, upon receipt thereof, shall comply with
the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
this section in the same manner as is required thereunder  with  respect
to an order of a court entered pursuant to said subdivision one[.]; OR
  (k)  (i)  The accusatory instrument alleged a violation of article two
hundred twenty or section 240.36 of the penal law, prior to  the  taking
effect  of  article  two  hundred  twenty-one  of  the  penal  law, or a
violation of article two hundred twenty-one of the penal law;  (ii)  the
sole  controlled  substance  involved is [marijuana] CANNABIS; AND (iii)
the conviction was only for a violation  or  violations[;  and  (iv)  at
least three years have passed since the offense occurred].
  §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
business law is REPEALED.
  § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
business  law, as amended by chapter 812 of the laws of 1980, is amended
to read as follows:
  (h) Objects, used or designed for the purpose of ingesting,  inhaling,
or  otherwise  introducing [marihuana,] cocaine, hashish, or hashish oil
into the human body.
  § 30. Section 114-a of the vehicle and traffic law, as added by  chap-
ter 163 of the laws of 1973, is amended to read as follows:
  §  114-a.  Drug.  The term "drug" when used in this chapter, means and
includes any substance listed in section thirty-three hundred six of the
public health law AND CANNABIS AND CONCENTRATED CANNABIS AS  DEFINED  IN
SECTION 220.00 OF THE PENAL LAW.
  §  31. The article heading of article 20-B of the tax law, as added by
chapter 90 of the laws of 2014, is amended to read as follows:
                               ARTICLE 20-B
               EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
  § 32. The paragraph heading and subparagraph (i) of paragraph  (b)  of
subdivision 1 of section 1193 of the vehicle and traffic law, as amended
by chapter 169 of the laws of 2013, are amended to read as follows:

S. 1509                            173                           A. 2009

  Driving  while intoxicated or while ability impaired by drugs or while
ability impaired by the combined influence of drugs or  of  alcohol  and
any  drug  or  drugs;  aggravated driving while intoxicated; misdemeanor
offenses. (i) A violation of subdivision two, three, OR four [or four-a]
of  section  eleven hundred ninety-two of this article shall be a misde-
meanor and shall be punishable by a fine of not less than  five  hundred
dollars  nor  more  than  one  thousand dollars, or by imprisonment in a
penitentiary or county jail for not more than one year, or by both  such
fine and imprisonment. A violation of paragraph (a) of subdivision two-a
of  section  eleven hundred ninety-two of this article shall be a misde-
meanor and shall be punishable by a fine of not less than  one  thousand
dollars  nor more than two thousand five hundred dollars or by imprison-
ment in a penitentiary or county jail for not more than one year, or  by
both such fine and imprisonment.
  §  33.  The paragraph heading and subparagraph (i) of paragraph (c) of
subdivision 1 of section 1193 of the vehicle and traffic law, as amended
by chapter 169 of the laws of 2013, are amended to read as follows:
  Felony offenses. (i) A person who operates a vehicle (A) in  violation
of subdivision FOUR-A OF SECTION ELEVEN HUNDRED NINETY-TWO OF THIS ARTI-
CLE  OR  IN  VIOLATION  OF  SUBDIVISION  two,  two-a, three, OR four [or
four-a] of section eleven  hundred  ninety-two  of  this  article  after
having  been  convicted of a violation of subdivision two, two-a, three,
four or four-a of such section or of vehicular assault in the second  or
first  degree,  as  defined, respectively, in sections 120.03 and 120.04
and aggravated vehicular assault as defined in section 120.04-a  of  the
penal law or of vehicular manslaughter in the second or first degree, as
defined,  respectively,  in  sections  125.12  and 125.13 and aggravated
vehicular homicide as defined in section 125.14 of such law, within  the
preceding ten years, or (B) in violation of paragraph (b) of subdivision
two-a  of  section  eleven  hundred  ninety-two of this article shall be
guilty of a class E felony, and shall be punished by a fine of not  less
than  one  thousand  dollars nor more than five thousand dollars or by a
period of imprisonment as provided in the penal law,  or  by  both  such
fine and imprisonment.
  §  34.  Subdivision  1  of section 171-a of the tax law, as amended by
section 3 of part MM of chapter 59 of the laws of 2018,  is  amended  to
read as follows:
  1.  All  taxes,  interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
twelve-A  (except  as  otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
(except as otherwise provided in section four hundred eighty-two  there-
of),  twenty-B,  TWENTY-C,  twenty-one, twenty-two, twenty-four, twenty-
six, twenty-eight  (except  as  otherwise  provided  in  section  eleven
hundred  two  or  eleven hundred three thereof), twenty-eight-A, twenty-
nine-B, thirty-one (except as otherwise  provided  in  section  fourteen
hundred  twenty-one  thereof),  thirty-three  and thirty-three-A of this
chapter shall be deposited daily in one account  with  such  responsible
banks,  banking  houses  or  trust companies as may be designated by the
comptroller, to the credit of the comptroller. Such an  account  may  be
established  in one or more of such depositories. Such deposits shall be
kept separate and apart from all other money in the  possession  of  the
comptroller.  The  comptroller  shall require adequate security from all

S. 1509                            174                           A. 2009

such depositories. Of the total revenue collected or received under such
articles of this chapter, the comptroller  shall  retain  in  the  comp-
troller's  hands  such  amount  as  the commissioner may determine to be
necessary  for  refunds  or  reimbursements  under such articles of this
chapter out of which amount the comptroller shall  pay  any  refunds  or
reimbursements to which taxpayers shall be entitled under the provisions
of  such  articles of this chapter. The commissioner and the comptroller
shall maintain a system  of  accounts  showing  the  amount  of  revenue
collected  or  received from each of the taxes imposed by such articles.
The comptroller, after reserving the  amount  to  pay  such  refunds  or
reimbursements,  shall,  on  or  before the tenth day of each month, pay
into the state treasury to the credit of the general  fund  all  revenue
deposited  under  this  section  during the preceding calendar month and
remaining to the comptroller's credit on the last day of such  preceding
month, (i) except that the comptroller shall pay to the state department
of social services that amount of overpayments of tax imposed by article
twenty-two  of  this  chapter  and  the interest on such amount which is
certified to the comptroller by the commissioner as  the  amount  to  be
credited against past-due support pursuant to subdivision six of section
one  hundred  seventy-one-c  of  this  article, (ii) and except that the
comptroller shall pay to the New York state  higher  education  services
corporation  and the state university of New York or the city university
of New York respectively that amount of overpayments of tax  imposed  by
article twenty-two of this chapter and the interest on such amount which
is  certified to the comptroller by the commissioner as the amount to be
credited against the amount  of  defaults  in  repayment  of  guaranteed
student loans and state university loans or city university loans pursu-
ant  to subdivision five of section one hundred seventy-one-d and subdi-
vision six of section one hundred seventy-one-e of this  article,  (iii)
and  except further that, notwithstanding any law, the comptroller shall
credit  to  the  revenue  arrearage   account,   pursuant   to   section
ninety-one-a of the state finance law, that amount of overpayment of tax
imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
or thirty-three of this chapter, and  any  interest  thereon,  which  is
certified  to  the  comptroller  by the commissioner as the amount to be
credited against a past-due legally enforceable debt  owed  to  a  state
agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
hundred seventy-one-f of this article, provided, however, he shall cred-
it to the special offset fiduciary account, pursuant to section  ninety-
one-c  of the state finance law, any such amount creditable as a liabil-
ity as set forth in paragraph (b) of  subdivision  six  of  section  one
hundred  seventy-one-f of this article, (iv) and except further that the
comptroller shall pay to the city of New York that amount of overpayment
of tax imposed by article nine, nine-A,  twenty-two,  thirty,  thirty-A,
thirty-B  or  thirty-three of this chapter and any interest thereon that
is certified to the comptroller by the commissioner as the amount to  be
credited  against city of New York tax warrant judgment debt pursuant to
section one hundred  seventy-one-l  of  this  article,  (v)  and  except
further  that  the  comptroller shall pay to a non-obligated spouse that
amount of overpayment of tax imposed by article twenty-two of this chap-
ter and the interest on such amount which has been credited pursuant  to
section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
hundred seventy-one-e, one hundred seventy-one-f or one  hundred  seven-
ty-one-l  of  this  article and which is certified to the comptroller by
the commissioner as the amount due such non-obligated spouse pursuant to
paragraph six of subsection (b) of section six hundred fifty-one of this

S. 1509                            175                           A. 2009

chapter; and (vi) the comptroller shall deduct a like amount  which  the
comptroller  shall  pay  into  the treasury to the credit of the general
fund from amounts subsequently  payable  to  the  department  of  social
services,  the  state university of New York, the city university of New
York, or the higher  education  services  corporation,  or  the  revenue
arrearage  account  or  special  offset  fiduciary  account  pursuant to
section ninety-one-a or ninety-one-c of the state finance  law,  as  the
case  may be, whichever had been credited the amount originally withheld
from such overpayment, and (vii)  with  respect  to  amounts  originally
withheld  from such overpayment pursuant to section one hundred seventy-
one-l of this article and paid to the city of New York, the  comptroller
shall collect a like amount from the city of New York.
  §  35.  Section 490 of the tax law, as added by chapter 90 of the laws
of 2014, is amended to read as follows:
  § 490. [Definitions] EXCISE TAX ON MEDICAL  CANNABIS.    1.  (a)  [All
definitions  of terms applicable to title five-A of article thirty-three
of the public health law shall apply to this article.] FOR  PURPOSES  OF
THIS  ARTICLE,  THE TERMS "MEDICAL CANNABIS," "REGISTERED ORGANIZATION,"
"CERTIFIED PATIENT," AND "DESIGNATED  CAREGIVER"  SHALL  HAVE  THE  SAME
DEFINITIONS AS IN SECTION THREE OF THE CANNABIS LAW.
  (b)  As used in this section, where not otherwise specifically defined
and unless a different meaning is clearly required "gross receipt" means
the amount received in or by reason of any sale, conditional  or  other-
wise, of medical [marihuana] CANNABIS or in or by reason of the furnish-
ing of medical [marihuana] CANNABIS from the sale of medical [marihuana]
CANNABIS provided by a registered organization to a certified patient or
designated caregiver.  Gross receipt is expressed in money, whether paid
in  cash,  credit or property of any kind or nature, and shall be deter-
mined without any deduction therefrom on account  of  the  cost  of  the
service  sold  or the cost of materials, labor or services used or other
costs, interest or discount paid,  or  any  other  expenses  whatsoever.
"Amount received" for the purpose of the definition of gross receipt, as
the term gross receipt is used throughout this article, means the amount
charged for the provision of medical [marihuana] CANNABIS.
  2.  There  is  hereby imposed an excise tax on the gross receipts from
the sale of medical [marihuana] CANNABIS by a registered organization to
a certified patient or designated caregiver, to be paid  by  the  regis-
tered  organization,  at  the  rate of seven percent. The tax imposed by
this article shall be charged against and  be  paid  by  the  registered
organization and shall not be added as a separate charge or line item on
any sales slip, invoice, receipt or other statement or memorandum of the
price given to the retail customer.
  3.  The  commissioner  may  make,  adopt and amend rules, regulations,
procedures and forms necessary for the  proper  administration  of  this
article.
  4. Every registered organization that makes sales of medical [marihua-
na]  CANNABIS  subject  to  the tax imposed by this article shall, on or
before the twentieth date of each month, file with  the  commissioner  a
return  on  forms  to  be  prescribed  by  the commissioner, showing its
receipts from the retail sale of medical [marihuana] CANNABIS during the
preceding calendar month and the amount of tax due thereon. Such returns
shall contain such further information as the commissioner may  require.
Every  registered  organization  required  to  file  a return under this
section shall, at the time of filing such return, pay to the commission-
er the total amount of tax due on its retail sales of medical  [marihua-
na]  CANNABIS  for the period covered by such return. If a return is not

S. 1509                            176                           A. 2009

filed when due, the tax shall be due on the day on which the  return  is
required to be filed.
  5.  Whenever the commissioner shall determine that any moneys received
under the provisions of this article were paid in error,  he  may  cause
the  same  to  be refunded, with interest, in accordance with such rules
and regulations as he may prescribe, except that no  interest  shall  be
allowed  or  paid  if  the amount thereof would be less than one dollar.
Such interest shall be at the overpayment rate set by  the  commissioner
pursuant  to subdivision twenty-sixth of section one hundred seventy-one
of this chapter, or if no rate is set, at the rate of  six  percent  per
annum,  from  the  date when the tax, penalty or interest to be refunded
was paid to a date preceding the date of the refund check  by  not  more
than  thirty  days.  Provided,  however,  that  for the purposes of this
subdivision, any tax paid before the last day prescribed for its payment
shall be deemed to have been paid on such last day. Such moneys received
under the provisions of this article which the commissioner shall deter-
mine were paid in error, may be refunded out of funds in the custody  of
the  comptroller  to  the  credit  of such taxes provided an application
therefor is filed with the commissioner within two years from  the  time
the erroneous payment was made.
  6.  The provisions of article twenty-seven of this chapter shall apply
to the tax imposed by this article in the same manner and with the  same
force  and  effect  as if the language of such article had been incorpo-
rated in full into this section and had expressly referred  to  the  tax
imposed by this article, except to the extent that any provision of such
article  is  either  inconsistent with a provision of this article or is
not relevant to this article.
  7. All taxes, interest and penalties  collected  or  received  by  the
commissioner  under  this  article  shall  be  deposited and disposed of
pursuant to the provisions of section one hundred seventy-one-a of  this
chapter,  provided that an amount equal to one hundred percent collected
under this article less any amount determined by the commissioner to  be
reserved  by the comptroller for refunds or reimbursements shall be paid
by the comptroller to the credit of  the  medical  [marihuana]  CANNABIS
trust  fund  established  by  section eighty-nine-h of the state finance
law.
  8. A registered organization that dispenses medical [marihuana] CANNA-
BIS shall provide to the department information  on  where  the  medical
[marihuana]  CANNABIS  was  dispensed  and where the medical [marihuana]
CANNABIS was manufactured. A registered organization that obtains [mari-
huana] CANNABIS from another registered organization shall  obtain  from
such  registered organization information on where the medical [marihua-
na] CANNABIS was manufactured.
  § 36. Section 491 of the tax law, as added by chapter 90 of  the  laws
of  2014, subdivision 1 as amended by section 1 of part II of chapter 60
of the laws of 2016, is amended to read as follows:
  § 491. Returns to be secret. 1. Except in accordance with proper judi-
cial order or as in this section or otherwise provided by law, it  shall
be unlawful for the commissioner, any officer or employee of the depart-
ment, or any officer or person who, pursuant to this section, is permit-
ted  to inspect any return or report or to whom a copy, an abstract or a
portion of any return or report is furnished, or to whom any information
contained in any return or report is furnished, or any person engaged or
retained by such department on an  independent  contract  basis  or  any
person  who  in  any  manner  may acquire knowledge of the contents of a
return or report filed pursuant to this article to divulge or make known

S. 1509                            177                           A. 2009

in any manner the contents or any  other  information  relating  to  the
business of a distributor, owner or other person contained in any return
or  report  required  under  this article. The officers charged with the
custody  of such returns or reports shall not be required to produce any
of them or evidence of anything contained  in  them  in  any  action  or
proceeding  in  any  court,  except  on  behalf of the state, [the state
department of health] OFFICE OF CANNABIS MANAGEMENT, or the commissioner
in an action or proceeding under the provisions of this  chapter  or  on
behalf  of the state or the commissioner in any other action or proceed-
ing involving the collection of a tax due under this  chapter  to  which
the  state  or the commissioner is a party or a claimant or on behalf of
any party to any action or proceeding under the provisions of this arti-
cle, when the returns or the reports or  the  facts  shown  thereby  are
directly  involved  in  such  action  or  proceeding, or in an action or
proceeding relating to the regulation or taxation of medical [marihuana]
CANNABIS on behalf of officers  to  whom  information  shall  have  been
supplied as provided in subdivision two of this section, in any of which
events  the  court  may  require  the  production  of,  and may admit in
evidence so much of said returns or reports or of the facts shown there-
by as are pertinent to the action or proceeding  and  no  more.  Nothing
herein  shall  be  construed to prohibit the commissioner, in his or her
discretion, from allowing the inspection or delivery of a certified copy
of any return or report filed under this article or of  any  information
contained  in any such return or report by or to a duly authorized offi-
cer or employee of the [state department of health] OFFICE  OF  CANNABIS
MANAGEMENT;  or  by  or to the attorney general or other legal represen-
tatives of the state when an  action  shall  have  been  recommended  or
commenced  pursuant  to this chapter in which such returns or reports or
the facts shown thereby are directly involved; or the inspection of  the
returns  or  reports  required  under this article by the comptroller or
duly designated officer or employee of the state department of audit and
control, for purposes of the audit of a refund of  any  tax  paid  by  a
registered  organization  or  other  person  under  this article; nor to
prohibit the delivery to a registered organization, or a duly authorized
representative of such registered organization, a certified copy of  any
return  or report filed by such registered organization pursuant to this
article, nor to prohibit the publication of statistics so classified  as
to  prevent  the identification of particular returns or reports and the
items thereof. This section shall also not be construed to prohibit  the
disclosure,  for  tax  administration  purposes,  to the division of the
budget and the office of the state comptroller,  of  information  aggre-
gated  from the returns filed by all the registered organizations making
sales of, or manufacturing, medical [marihuana] CANNABIS in a  specified
county,  whether  the  number of such registered organizations is one or
more. Provided further that,  notwithstanding  the  provisions  of  this
subdivision,  the commissioner may, in his or her discretion, permit the
proper officer of any county entitled to receive an allocation,  follow-
ing  appropriation  by  the  legislature,  pursuant  to this article and
section eighty-nine-h of the state finance law, or the authorized repre-
sentative of such officer, to inspect any return filed under this  arti-
cle,  or  may furnish to such officer or the officer's authorized repre-
sentative an abstract of any such return or supply such officer or  such
representative with information concerning an item contained in any such
return,  or  disclosed  by any investigation of tax liability under this
article.

S. 1509                            178                           A. 2009

  2. The commissioner, in his or her discretion  and  pursuant  to  such
rules  and  regulations  as he or she may adopt, may permit [the commis-
sioner of internal revenue of the United  States,  or]  the  appropriate
officers of any other state which regulates or taxes medical [marihuana]
CANNABIS,  or  the duly authorized representatives of such [commissioner
or of any such] officers, to inspect returns or reports made pursuant to
this article, or may furnish to such [commissioner or]  other  officers,
or  duly authorized representatives, a copy of any such return or report
or an abstract of the information  therein  contained,  or  any  portion
thereof,  or may supply [such commissioner or] any such officers or such
representatives with information relating to the business  of  a  regis-
tered organization making returns or reports hereunder. The commissioner
may  refuse  to  supply information pursuant to this subdivision [to the
commissioner of internal revenue of the United States or] to  the  offi-
cers  of  any  other state if the statutes [of the United States, or] of
the state represented by such officers, do not grant substantially simi-
lar privileges to the commissioner, but such refusal shall not be manda-
tory. Information shall not be supplied to [the commissioner of internal
revenue of the United States or] the appropriate officers of  any  other
state which regulates or taxes medical [marihuana] CANNABIS, or the duly
authorized  representatives  [of  such  commissioner  or] of any of such
officers, unless such [commissioner,] officer or  other  representatives
shall  agree  not to divulge or make known in any manner the information
so supplied, but such officers may transmit such  information  to  their
employees  or legal representatives when necessary, who in turn shall be
subject to the same restrictions  as  those  hereby  imposed  upon  such
[commissioner,] officer or other representatives.
  3. (a) Any officer or employee of the state who willfully violates the
provisions  of subdivision one or two of this section shall be dismissed
from office and be incapable of holding any public office in this  state
for a period of five years thereafter.
  (b)  Cross-reference: For criminal penalties, see article thirty-seven
of this chapter.
  § 37. The tax law is amended by adding a new article 20-C to  read  as
follows:

                              ARTICLE 20-C
                   TAX ON ADULT-USE CANNABIS PRODUCTS
SECTION 492. DEFINITIONS.
        493. TAX ON CANNABIS.
        494. REGISTRATION AND RENEWAL.
        495. RETURNS AND PAYMENT OF TAX.
        496. RETURNS TO BE KEPT SECRET.
  §  492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI-
NITIONS SHALL APPLY:
  (A) "CANNABIS" MEANS ALL PARTS OF  A  PLANT  OF  THE  GENUS  CANNABIS,
WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
MIXTURE,  OR  PREPARATION OF THE PLANT, ITS SEEDS OR RESIN. FOR PURPOSES
OF THIS ARTICLE, CANNABIS DOES NOT INCLUDE MEDICAL CANNABIS OR  HEMP  AS
DEFINED IN SECTION THREE OF THE CANNABIS LAW.
  (B)  "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA-
BIS THAT HAS BEEN HARVESTED, DRIED, AND CURED, AND PRIOR TO ANY PROCESS-
ING WHEREBY THE  PLANT  MATERIAL  IS  TRANSFORMED  INTO  A  CONCENTRATE,
INCLUDING,  BUT  NOT  LIMITED TO, CONCENTRATED CANNABIS, OR AN EDIBLE OR

S. 1509                            179                           A. 2009

TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS  AND  OTHER
INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM.
  (C)  "CANNABIS  TRIM" MEANS ALL PARTS OF A PLANT OF THE GENUS CANNABIS
OTHER THAN CANNABIS FLOWERS THAT HAVE BEEN HARVESTED, DRIED, AND  CURED,
AND  PRIOR  TO  ANY PROCESSING WHEREBY THE PLANT MATERIAL IS TRANSFORMED
INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO,  CONCENTRATED  CANNA-
BIS,  OR  AN  EDIBLE  OR  TOPICAL  PRODUCT CONTAINING CANNABIS AND OTHER
INGREDIENTS.
  (D) "ADULT-USE CANNABIS PRODUCT" MEANS A CANNABIS PRODUCT  AS  DEFINED
IN  SECTION  THREE  OF  THE  CANNABIS LAW. FOR PURPOSES OF THIS ARTICLE,
UNDER NO CIRCUMSTANCES SHALL ADULT-USE CANNABIS PRODUCT INCLUDE  MEDICAL
CANNABIS  OR  HEMP  CANNABIS AS DEFINED IN SECTION THREE OF THE CANNABIS
LAW.
  (E) "PERSON" MEANS EVERY INDIVIDUAL,  PARTNERSHIP,  LIMITED  LIABILITY
COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
RECEIVER,  TRUSTEE,  ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING IN A
FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY  A  COURT  OR
OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
  (F)  "WHOLESALER"  MEANS  ANY PERSON THAT SELLS OR TRANSFERS ADULT-USE
CANNABIS PRODUCTS TO A RETAIL DISPENSARY LICENSED  PURSUANT  TO  SECTION
SEVENTY-TWO  OF  THE  CANNABIS LAW. WHERE THE CULTIVATOR OR PROCESSOR IS
ALSO THE RETAIL DISPENSARY, THE RETAIL DISPENSARY SHALL  BE  THE  WHOLE-
SALER FOR PURPOSES OF THIS ARTICLE.
  (G) "CULTIVATION" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO
OF SECTION SIXTY-EIGHT OF THE CANNABIS LAW.
  (H)  "RETAIL DISPENSARY" MEANS A DISPENSARY LICENSED TO SELL ADULT-USE
CANNABIS PRODUCTS PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW.
  (I) "TRANSFER" MEANS  TO  GRANT,  CONVEY,  HAND  OVER,  ASSIGN,  SELL,
EXCHANGE  OR  BARTER,  IN  ANY  MANNER  OR BY ANY MEANS, WITH OR WITHOUT
CONSIDERATION.
  (J) "SALE" MEANS ANY TRANSFER OF TITLE, POSSESSION OR  BOTH,  EXCHANGE
OR  BARTER,  RENTAL,  LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL OR
OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A  CONSIDERATION
OR ANY AGREEMENT THEREFOR.
  (K)  "PROCESSOR"  HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO
OF SECTION SIXTY-NINE OF THE CANNABIS LAW.
  § 493. TAX ON CANNABIS. (A) THERE IS HEREBY IMPOSED AND SHALL BE  PAID
A  TAX  ON THE CULTIVATION OF CANNABIS FLOWER AND CANNABIS TRIM CANNABIS
PURSUANT TO THE CANNABIS LAW AT THE RATE OF ONE  DOLLAR  PER  DRY-WEIGHT
GRAM  OF  CANNABIS  FLOWER  AND TWENTY-FIVE CENTS PER DRY-WEIGHT GRAM OF
CANNABIS TRIM. WHERE THE WHOLESALER IS  NOT  THE  CULTIVATOR,  SUCH  TAX
SHALL  BE  COLLECTED  FROM  THE CULTIVATOR BY THE WHOLESALER AT THE TIME
SUCH FLOWER OR TRIM IS TRANSFERRED TO THE WHOLESALER. WHERE  THE  WHOLE-
SALER  IS  THE  CULTIVATOR, SUCH TAX SHALL BE PAID BY THE WHOLESALER AND
SHALL ACCRUE AT THE TIME OF SALE OR TRANSFER  TO  A  RETAIL  DISPENSARY.
WHERE  THE  CULTIVATOR  IS  ALSO  THE  RETAIL DISPENSARY, SUCH TAX SHALL
ACCRUE AT THE TIME OF THE SALE TO THE RETAIL CUSTOMER.
  (B) IN ADDITION TO THE TAX IMPOSED BY SUBDIVISION (A) OF THIS SECTION,
THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A WHOLESALER TO
A RETAIL DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, TO BE PAID  BY  SUCH
WHOLESALER.  WHERE THE WHOLESALER IS NOT THE RETAIL DISPENSARY, SUCH TAX
SHALL BE AT THE RATE OF TWENTY PERCENT OF THE INVOICE PRICE  CHARGED  BY
THE  WHOLESALER  TO A RETAIL DISPENSARY, AND SHALL ACCRUE AT THE TIME OF
SUCH SALE. WHERE THE WHOLESALER IS THE RETAIL DISPENSARY, SUCH TAX SHALL
BE AT THE RATE OF TWENTY PERCENT OF THE  PRICE  CHARGED  TO  THE  RETAIL
CUSTOMER AND SHALL ACCRUE AT THE TIME OF SUCH SALE.

S. 1509                            180                           A. 2009

  (C)  IN  ADDITION  TO THE TAXES IMPOSED BY SUBDIVISIONS (A) AND (B) OF
THIS SECTION, THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A
WHOLESALER TO A RETAIL DISPENSARY OF  ADULT-USE  CANNABIS  PRODUCTS,  IN
TRUST FOR AND ON ACCOUNT OF THE COUNTY IN WHICH THE RETAIL DISPENSARY IS
LOCATED.  SUCH  TAX  SHALL BE PAID BY THE WHOLESALER AND SHALL ACCRUE AT
THE TIME OF SUCH SALE.  WHERE THE WHOLESALER IS NOT THE  RETAIL  DISPEN-
SARY,  SUCH TAX SHALL BE AT THE RATE OF TWO PERCENT OF THE INVOICE PRICE
CHARGED BY THE WHOLESALER TO A RETAIL DISPENSARY. WHERE  THE  WHOLESALER
IS  THE  RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF TWO PERCENT
OF THE PRICE CHARGED TO THE RETAIL CUSTOMER.
  (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  THE
TAXES  IMPOSED  BY ARTICLE TWENTY OF THIS CHAPTER SHALL NOT APPLY TO ANY
PRODUCT SUBJECT TO TAX UNDER THIS ARTICLE.
  § 494. REGISTRATION AND RENEWAL. (A) EVERY WHOLESALER MUST  FILE  WITH
THE  COMMISSIONER  A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF
REGISTRATION BEFORE ENGAGING IN BUSINESS. IN ORDER  TO  APPLY  FOR  SUCH
CERTIFICATE  OF REGISTRATION, SUCH PERSON MUST FIRST BE IN POSSESSION OF
A VALID LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT.  AN  APPLICATION
FOR A CERTIFICATE OF REGISTRATION MUST BE SUBMITTED ELECTRONICALLY, ON A
FORM  PRESCRIBED  BY THE COMMISSIONER, AND MUST BE ACCOMPANIED BY A NON-
REFUNDABLE APPLICATION FEE OF SIX  HUNDRED  DOLLARS.  A  CERTIFICATE  OF
REGISTRATION  SHALL  NOT  BE  ASSIGNABLE  OR  TRANSFERABLE  AND SHALL BE
DESTROYED IMMEDIATELY UPON SUCH PERSON CEASING TO DO BUSINESS AS  SPECI-
FIED  IN  SUCH  CERTIFICATE,  OR  IN  THE EVENT THAT SUCH BUSINESS NEVER
COMMENCED.
  (B) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF  REGISTRA-
TION  TO  ANY APPLICANT AND SHALL REVOKE THE CERTIFICATE OF REGISTRATION
OF ANY SUCH PERSON WHO DOES NOT POSSESS A VALID LICENSE FROM THE  OFFICE
OF  CANNABIS  MANAGEMENT. THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIF-
ICATE OF REGISTRATION TO ANY APPLICANT WHERE SUCH APPLICANT: (1)  HAS  A
PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVEN-
TY-ONE-V  OF  THIS  CHAPTER;  (2)  HAS HAD A CERTIFICATE OF REGISTRATION
UNDER THIS ARTICLE, A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT, OR
ANY LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED  WITHIN
ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (3) HAS BEEN
CONVICTED  OF  A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM
THE DATE ON WHICH SUCH APPLICATION WAS FILED OF THE CERTIFICATE'S  ISSU-
ANCE;  (4)  WILLFULLY  FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS
ARTICLE; (5) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO  BE
GIVEN  A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTI-
CLE WHICH IS FALSE; OR (6) WILLFULLY  FAILS  TO  COLLECT  OR  TRUTHFULLY
ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE.
  (C) A CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE PERIOD SPECI-
FIED  THEREON,  UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION
OF THE TERM STATED ON A CERTIFICATE OF  REGISTRATION,  SUCH  CERTIFICATE
SHALL BE NULL AND VOID.
  (D)  EVERY  HOLDER  OF  A  CERTIFICATE OF REGISTRATION MUST NOTIFY THE
COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE  CERTIF-
ICATE, OR OF CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR
THE  CERTIFICATE  OF  REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR
BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS  AND  MUST  BE
MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.
  (E)  EVERY  HOLDER OF A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE
SHALL BE REQUIRED TO REAPPLY PRIOR  TO  SUCH  CERTIFICATE'S  EXPIRATION,
DURING  A  REAPPLICATION  PERIOD  ESTABLISHED  BY THE COMMISSIONER. SUCH
REAPPLICATION PERIOD SHALL NOT OCCUR  MORE  FREQUENTLY  THAN  EVERY  TWO

S. 1509                            181                           A. 2009

YEARS.  SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND
CONDITIONS, INCLUDING GROUNDS FOR REFUSAL, AS  AN  INITIAL  APPLICATION,
INCLUDING THE PAYMENT OF THE APPLICATION FEE.
  (F)  PENALTIES. A PERSON TO WHOM ADULT-USE CANNABIS PRODUCTS HAVE BEEN
TRANSFERRED OR WHO SELLS ADULT-USE CANNABIS  PRODUCTS  WITHOUT  A  VALID
CERTIFICATE  OF REGISTRATION PURSUANT TO SUBDIVISION (A) OF THIS SECTION
SHALL BE SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS FOR EACH MONTH  OR
PART  THEREOF  DURING  WHICH  SUCH PERSON CONTINUES TO POSSESS ADULT-USE
CANNABIS PRODUCTS THAT HAVE BEEN TRANSFERRED TO SUCH PERSON OR WHO SELLS
SUCH PRODUCTS AFTER THE EXPIRATION OF THE FIRST MONTH AFTER  WHICH  SUCH
PERSON  OPERATES  WITHOUT  A  VALID  CERTIFICATE OF REGISTRATION, NOT TO
EXCEED TEN THOUSAND DOLLARS IN THE AGGREGATE.
  § 495. RETURNS AND PAYMENT OF TAX. (A) 1. EVERY WHOLESALER  SHALL,  ON
OR  BEFORE THE TWENTIETH DATE OF THE MONTH, FILE WITH THE COMMISSIONER A
RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE  TOTAL
WEIGHT  OF  CANNABIS FLOWER AND CANNABIS TRIM SUBJECT TO TAX PURSUANT TO
SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE AND
THE TOTAL AMOUNT OF TAX DUE THEREON IN THE PRECEDING CALENDAR MONTH, AND
THE TOTAL AMOUNT OF TAX DUE UNDER  SUBDIVISIONS  (B)  AND  (C)  OF  SUCH
SECTION  ON ITS SALES TO A RETAIL DISPENSARY DURING THE PRECEDING CALEN-
DAR MONTH, ALONG WITH SUCH OTHER INFORMATION  AS  THE  COMMISSIONER  MAY
REQUIRE.  EVERY  PERSON  REQUIRED  TO  FILE  A RETURN UNDER THIS SECTION
SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO  THE  COMMISSIONER  THE
TOTAL  AMOUNT  OF  TAX  DUE  FOR THE PERIOD COVERED BY SUCH RETURN. IF A
RETURN IS NOT FILED WHEN DUE, THE TAX SHALL BE DUE ON THE DAY  ON  WHICH
THE RETURN IS REQUIRED TO BE FILED.
  2.  THE  WHOLESALER  SHALL  MAINTAIN  SUCH RECORDS IN SUCH FORM AS THE
COMMISSIONER MAY REQUIRE REGARDING SUCH ITEMS AS: WHERE  THE  WHOLESALER
IS  NOT  THE  CULTIVATOR, THE WEIGHT OF THE CANNABIS FLOWER AND CANNABIS
TRIM TRANSFERRED TO IT BY A CULTIVATOR OR, WHERE THE WHOLESALER  IS  THE
CULTIVATOR,  THE  WEIGHT  OF  SUCH  FLOWER  AND TRIM PRODUCED BY IT; THE
GEOGRAPHIC LOCATION OF EVERY RETAIL DISPENSARY TO WHICH IT  SOLD  ADULT-
USE  CANNABIS  PRODUCTS; AND ANY OTHER RECORD OR INFORMATION REQUIRED BY
THE COMMISSIONER. THIS INFORMATION MUST BE KEPT BY  SUCH  PERSON  FOR  A
PERIOD OF THREE YEARS AFTER THE RETURN WAS FILED.
  (B) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
TO  THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME
FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE  HAD  BEEN  INCORPO-
RATED  IN  FULL  INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE TAX
IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH
ARTICLE IS EITHER INCONSISTENT WITH A PROVISION OF THIS  ARTICLE  OR  IS
NOT RELEVANT TO THIS ARTICLE.
  (C) 1. ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED BY THE
COMMISSIONER  UNDER  THIS  ARTICLE  SHALL  BE  DEPOSITED AND DISPOSED OF
PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF  THIS
CHAPTER,  PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT COLLECTED
UNDER THIS ARTICLE LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO  BE
RESERVED  BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE PAID
BY THE COMPTROLLER TO THE CREDIT OF THE  CANNABIS  REVENUE  FUND  ESTAB-
LISHED  BY SECTION NINETY-NINE-FF OF THE STATE FINANCE LAW. OF THE TOTAL
REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER  SHALL
RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
REFUNDS.  THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE
REGISTRATION FEES UNDER SUBDIVISION (A) OF SECTION FOUR HUNDRED  NINETY-
FOUR  OF  THIS  ARTICLE,  BEFORE  DEPOSIT INTO THE CANNABIS REVENUE FUND
DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTU-

S. 1509                            182                           A. 2009

ATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPART-
MENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT, AND  DISTRIBUTE  THE
TAXES IMPOSED BY THIS ARTICLE.
  2.  NOTWITHSTANDING  THE  FOREGOING, THE COMMISSIONER SHALL CERTIFY TO
THE COMPTROLLER THE TOTAL AMOUNT OF TAX, PENALTY AND  INTEREST  RECEIVED
BY  HIM  OR  HER  ON  ACCOUNT  OF  THE TAX IMPOSED BY SUBDIVISION (C) OF
SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE IN TRUST  FOR  AND  ON
ACCOUNT  OF  EACH  COUNTY IN WHICH A RETAIL DISPENSARY IS LOCATED. ON OR
BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMPTROLLER,  AFTER  RESERVING
SUCH  REFUND  FUND,  SHALL PAY TO THE APPROPRIATE FISCAL OFFICER OF EACH
SUCH COUNTY THE TAXES, PENALTIES AND INTEREST RECEIVED AND CERTIFIED  BY
THE COMMISSIONER FOR THE PRECEDING CALENDAR MONTH.
  § 496. RETURNS TO BE KEPT SECRET. (A) EXCEPT IN ACCORDANCE WITH PROPER
JUDICIAL  ORDER  OR  AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT
SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE  OF  THE
DEPARTMENT,  OR  ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS
PERMITTED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT
OR A PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFOR-
MATION CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON WHO
IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF  THE  CONTENTS  OF  A  RETURN  OR
REPORT  FILED  PURSUANT  TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN IN ANY
MANNER THE CONTENT OR ANY OTHER INFORMATION RELATED TO THE  BUSINESS  OF
THE  WHOLESALER  CONTAINED  IN  ANY RETURN OR REPORT REQUIRED UNDER THIS
ARTICLE. THE OFFICERS CHARGED  WITH  THE  CUSTODY  OF  SUCH  RETURNS  OR
REPORTS  SHALL  NOT  BE  REQUIRED  TO PRODUCE ANY OF THEM OR EVIDENCE OF
ANYTHING CONTAINED IN THEM IN ANY ACTION OR  PROCEEDING  IN  ANY  COURT,
EXCEPT ON BEHALF OF THE STATE, THE OFFICE OF CANNABIS MANAGEMENT, OR THE
COMMISSIONER  IN AN ACTION OR PROCEEDING INVOLVING THE COLLECTION OF TAX
DUE UNDER THIS CHAPTER TO WHICH THE STATE OR THE COMMISSIONER IS A PARTY
OR A CLAIMANT OR ON BEHALF OF ANY PARTY  TO  ANY  ACTION  OR  PROCEEDING
UNDER THE PROVISIONS OF THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR
THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEED-
ING, OR IN AN ACTION OR PROCEEDING RELATED TO THE REGULATION OR TAXATION
OF ADULT-USE CANNABIS PRODUCTS ON BEHALF OF OFFICERS TO WHOM INFORMATION
SHALL  HAVE  BEEN  SUPPLIED AS PROVIDED IN THIS SECTION, IN ANY OF WHICH
EVENTS THE COURTS MAY REQUIRE  THE  PRODUCTION  OF,  AND  MAY  ADMIT  IN
EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE-
BY  AS  ARE  PERTINENT  TO THE ACTION OR PROCEEDING AND NO MORE. NOTHING
HEREIN SHALL BE CONSTRUED TO PROHIBIT THE COMMISSIONER, IN  HIS  OR  HER
DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTIFIED COPY
OF  ANY  RETURN OR REPORT FILED UNDER THIS ARTICLE OR OF ANY INFORMATION
CONTAINED IN ANY SUCH RETURN OR REPORT BY OR TO A DULY AUTHORIZED  OFFI-
CER  OR  EMPLOYEE  OF  THE OFFICE OF CANNABIS MANAGEMENT OR BY OR TO THE
ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES OF  THE  STATE  WHEN  AN
ACTION SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAPTER
IN WHICH SUCH RETURNS OR REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY
INVOLVED;  OR  THE  INSPECTION  OF THE RETURNS OR REPORTS REQUIRED UNDER
THIS ARTICLE BY THE COMPTROLLER OR DULY DESIGNATED OFFICER  OR  EMPLOYEE
OF  THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT
OF A REFUND OF ANY TAX PAID BY THE WHOLESALER UNDER THIS ARTICLE; NOR TO
PROHIBIT THE DELIVERY TO SUCH PERSON OR A DULY AUTHORIZED REPRESENTATIVE
OF SUCH PERSON, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED  BY  SUCH
PERSON  PURSUANT  TO  THIS  ARTICLE,  NOR TO PROHIBIT THE PUBLICATION OF
STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF  PARTICULAR
RETURNS OR REPORTS AND THE ITEMS THEREOF. THIS SECTION SHALL ALSO NOT BE
CONSTRUED  TO  PROHIBIT THE DISCLOSURE, FOR TAX ADMINISTRATION PURPOSES,

S. 1509                            183                           A. 2009

TO THE DIVISION OF THE BUDGET AND THE OFFICE OF THE  STATE  COMPTROLLER,
OF  INFORMATION  AGGREGATED  FROM  THE  RETURNS FILED BY ALL WHOLESALERS
PURCHASING AND SELLING SUCH PRODUCTS IN THE STATE, WHETHER THE NUMBER OF
SUCH  PERSONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITHSTANDING THE
PROVISIONS OF THIS SUBDIVISION, THE  COMMISSIONER  MAY  IN  HIS  OR  HER
DISCRETION,  PERMIT THE PROPER OFFICER OF ANY COUNTY ENTITLED TO RECEIVE
ANY DISTRIBUTION OF THE MONIES RECEIVED ON ACCOUNT OF THE TAX IMPOSED BY
SUBDIVISION (C) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE, OR
THE AUTHORIZED REPRESENTATIVE OF SUCH OFFICER,  TO  INSPECT  ANY  RETURN
FILED  UNDER  THIS  ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR THE OFFI-
CER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY
SUCH OFFICER OR  REPRESENTATIVE  WITH  INFORMATION  CONCERNING  AN  ITEM
CONTAINED  IN  ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX
LIABILITY UNDER THIS ARTICLE.
  (B) THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY PERMIT THE  APPRO-
PRIATE  OFFICERS  OF ANY OTHER STATE THAT REGULATES OR TAXES CANNABIS OR
THE DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY  SUCH
OFFICERS,  TO  INSPECT RETURNS OR REPORTS MADE PURSUANT TO THIS ARTICLE,
OR MAY FURNISH TO THE COMMISSIONER OR OTHER OFFICER, OR DULY  AUTHORIZED
REPRESENTATIVES,  A  COPY OF ANY SUCH RETURN OR REPORT OR AN ABSTRACT OF
THE INFORMATION THEREIN CONTAINED, OR ANY PORTION THEREOF, OR MAY SUPPLY
SUCH COMMISSIONER OR ANY SUCH  OFFICERS  OR  SUCH  REPRESENTATIVES  WITH
INFORMATION  RELATING  TO THE BUSINESS OF A WHOLESALER MAKING RETURNS OR
REPORTS HEREUNDER SOLELY FOR PURPOSES OF TAX ADMINISTRATION. THE COMMIS-
SIONER MAY REFUSE TO SUPPLY INFORMATION PURSUANT TO THIS SUBDIVISION  TO
THE OFFICERS OF ANY OTHER STATE IF THE STATUTES OF THE STATE REPRESENTED
BY  SUCH  OFFICERS  DO NOT GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE
COMMISSIONER, BUT SUCH REFUSAL SHALL NOT BE MANDATORY. INFORMATION SHALL
NOT BE SUPPLIED TO THE APPROPRIATE OFFICERS OF ANY STATE THAT  REGULATES
OR  TAXES  CANNABIS,  OR  THE  DULY  AUTHORIZED  REPRESENTATIVES OF SUCH
COMMISSIONER OR OF ANY SUCH OFFICERS, UNLESS SUCH COMMISSIONER, OFFICER,
OR OTHER REPRESENTATIVES SHALL AGREE NOT TO DIVULGE OR MAKE KNOWN IN ANY
MANNER THE INFORMATION SO SUPPLIED, BUT SUCH OFFICERS MAY TRANSMIT  SUCH
INFORMATION  TO THEIR EMPLOYEES OR LEGAL REPRESENTATIVES WHEN NECESSARY,
WHO IN TURN SHALL BE SUBJECT TO THE SAME RESTRICTIONS  AS  THOSE  HEREBY
IMPOSED UPON SUCH COMMISSIONER, OFFICER OR OTHER REPRESENTATIVES.
  (C) 1. ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
PROVISIONS  OF SUBDIVISION ONE OR TWO OF THIS SECTION SHALL BE DISMISSED
FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN  THE  STATE
FOR A PERIOD OF FIVE YEARS THEREAFTER.
  2. FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
  §  38.  Subdivision  (a)  of section 1115 of the tax law is amended by
adding a new paragraph 3-b to read as follows:
  (3-B) ADULT-USE CANNABIS PRODUCTS AS DEFINED BY  ARTICLE  TWENTY-C  OF
THIS CHAPTER.
  § 39. Section 1825 of the tax law, as amended by section 3 of part NNN
of chapter 59 of the laws of 2018, is amended to read as follows:
  §  1825.  Violation  of secrecy provisions of the tax law.--Any person
who violates the SECRECY provisions of [subdivision (b) of section twen-
ty-one, subdivision one of section two hundred two, subdivision eight of
section two hundred eleven, subdivision (a)  of  section  three  hundred
fourteen,  subdivision  one or two of section four hundred thirty-seven,
section four hundred eighty-seven, subdivision one  or  two  of  section
five hundred fourteen, subsection (e) of section six hundred ninety-sev-
en,  subsection (a) of section nine hundred ninety-four, subdivision (a)
of section eleven hundred forty-six, section twelve hundred  eighty-sev-

S. 1509                            184                           A. 2009

en,  section  twelve  hundred ninety-six, section twelve hundred ninety-
nine-F, subdivision (a) of section fourteen hundred  eighteen,  subdivi-
sion (a) of section fifteen hundred eighteen, subdivision (a) of section
fifteen hundred fifty-five of] this chapter, [and] OR subdivision (e) of
section 11-1797 of the administrative code of the city of New York shall
be guilty of a misdemeanor.
  § 40. Section 12 of chapter 90 of the laws of 2014 amending the public
health  law,  the  tax  law, the state finance law, the general business
law, the penal law and the criminal procedure law  relating  to  medical
use of marihuana, is amended to read as follows:
  §  12. This act shall take effect immediately [and]; PROVIDED, HOWEVER
THAT SECTIONS ONE, THREE, FIVE, SIX, SEVEN-A, EIGHT, NINE, TEN AND ELEV-
EN OF THIS ACT shall expire and be deemed  repealed  seven  years  after
such  date; provided that the amendments to section 171-a of the tax law
made by section seven of this act shall take effect on the same date and
in the same manner as section 54 of part A of chapter 59 of the laws  of
2014  takes  effect  AND  SHALL  NOT  EXPIRE AND BE DEEMED REPEALED; and
provided, further, that the  amendments  to  subdivision  5  of  section
410.91  of the criminal procedure law made by section eleven of this act
shall not affect the expiration and repeal of  such  section  and  shall
expire and be deemed repealed therewith.
  §  41.  The  office  of  cannabis management, in consultation with the
division of the budget, the department  of  taxation  and  finance,  the
department of health, office of alcoholism and substance abuse services,
office of mental health, New York state police and the division of crim-
inal  justice  services,  shall conduct a  study of the effectiveness of
this act. Such study shall examine all aspects of  this  act,  including
economic  and fiscal impacts, the impact on the public health and safety
of New York residents and the progress made in achieving social  justice
goals and toward eliminating the illegal market for cannabis products in
New  York. The office shall make recommendations regarding the appropri-
ate level of taxation of adult-use cannabis, as well as changes, if any,
necessary to improve and protect the public health  and  safety  of  New
Yorkers.  Such  study  shall  be conducted two years after the effective
date of this act and shall be presented to the  governor,  the  majority
leader  of  the  senate  and  the speaker of the assembly, no later than
October 1, 2022.
  § 42. Section 102 of the alcoholic beverage control law is amended  by
adding a new subdivision 8 to read as follows:
  8. NO ALCOHOLIC BEVERAGE RETAIL LICENSEE SHALL SELL CANNABIS, NOR HAVE
OR  POSSESS  A  LICENSE OR PERMIT TO SELL CANNABIS, ON THE SAME PREMISES
WHERE ALCOHOLIC BEVERAGES ARE SOLD.
  § 43. Subdivisions 1, 4, 5, 6, 7 and  13  of  section  12-102  of  the
general  obligations  law,  as added by chapter 406 of the laws of 2000,
are amended to read as follows:
  1. "Illegal drug" means any controlled substance  [or  marijuana]  the
possession  of  which  is  an offense under the public health law or the
penal law.
  4. "Grade one violation" means  possession  of  one-quarter  ounce  or
more,  but less than four ounces, or distribution of less than one ounce
of an illegal drug [other than marijuana, or possession of one pound  or
twenty-five  plants  or more, but less than four pounds or fifty plants,
or distribution of less than one pound of marijuana].
  5. "Grade two violation" means possession of four ounces or more,  but
less  than  eight ounces, or distribution of one ounce or more, but less
than two ounces, of an illegal drug [other than marijuana, or possession

S. 1509                            185                           A. 2009

of four pounds or more or fifty plants or distribution of more than  one
pound but less than ten pounds of marijuana].
  6.  "Grade  three violation" means possession of eight ounces or more,
but less than sixteen ounces, or distribution of two ounces or more, but
less than four ounces, of a specified illegal  drug  [or  possession  of
eight  pounds  or  more  or  seventy-five  plants or more, but less than
sixteen pounds or one hundred plants, or distribution of more than  five
pounds but less than ten pounds of marijuana].
  7.  "Grade  four violation" means possession of sixteen ounces or more
or distribution of four ounces or more of a specified illegal  drug  [or
possession  of  sixteen  pounds or more or one hundred plants or more or
distribution of ten pounds or more of marijuana].
  13. "Drug trafficker" means a person convicted of a class A or class B
felony controlled substance [or marijuana offense]  who,  in  connection
with  the  criminal  conduct  for  which  he  or  she  stands convicted,
possessed, distributed, sold or conspired to sell a controlled substance
[or marijuana] which, by virtue of its quantity, the person's  prominent
role  in the enterprise responsible for the sale or distribution of such
controlled substance and other circumstances related  to  such  criminal
conduct  indicate  that  such  person's  criminal  possession,  sale  or
conspiracy to sell such substance was not an isolated occurrence and was
part of an ongoing pattern of criminal activity from which  such  person
derived  substantial income or resources and in which such person played
a leadership role.
  § 44. Paragraph (g) of subdivision 1 of  section  488  of  the  social
services law, as added by section 1 of part B of chapter 501 of the laws
of 2012, is amended to read as follows:
  (g)  "Unlawful use or administration of a controlled substance," which
shall mean any administration by a custodian to a service recipient  of:
a  controlled substance as defined by article thirty-three of the public
health law, without a prescription; or other medication not approved for
any use by the federal food and  drug  administration,  EXCEPT  FOR  THE
ADMINISTRATION  OF  MEDICAL  CANNABIS  WHEN  SUCH  ADMINISTRATION  IS IN
ACCORDANCE WITH ARTICLE THREE OF THE CANNABIS LAW  AND  ANY  REGULATIONS
PROMULGATED  THEREUNDER  AS WELL AS THE RULES, REGULATIONS, POLICIES, OR
PROCEDURES OF THE STATE OVERSIGHT  AGENCY  OR  AGENCIES  GOVERNING  SUCH
CUSTODIANS.  It  also  shall  include  a  custodian  unlawfully using or
distributing a controlled substance as defined by  article  thirty-three
of the public health law, at the workplace or while on duty.
  §  45.  Paragraphs  (e) and (f) of subdivision 1 of section 490 of the
social services law, as added by section 1 of part B of chapter  501  of
the  laws  of 2012, are amended and a new paragraph (g) is added to read
as follows:
  (e) information regarding individual  reportable  incidents,  incident
patterns  and  trends,  and  patterns  and  trends  in the reporting and
response to reportable incidents is shared, consistent  with  applicable
law,  with  the  justice  center, in the form and manner required by the
justice center and, for facilities or provider  agencies  that  are  not
state  operated,  with the applicable state oversight agency which shall
provide such information to the justice center; [and]
  (f) incident review committees  are  established;  provided,  however,
that  the  regulations may authorize an exemption from this requirement,
when appropriate, based on the size of the facility or  provider  agency
or  other relevant factors. Such committees shall be composed of members
of the governing body of the  facility  or  provider  agency  and  other
persons  identified  by the director of the facility or provider agency,

S. 1509                            186                           A. 2009

including some members of the following: direct support staff,  licensed
health  care  practitioners,  service  recipients and representatives of
family, consumer and other advocacy organizations, but not the  director
of  the facility or provider agency. Such committee shall meet regularly
to: (i) review the timeliness, thoroughness and appropriateness  of  the
facility  or  provider  agency's responses to reportable incidents; (ii)
recommend additional opportunities for improvement to  the  director  of
the  facility  or provider agency, if appropriate; (iii) review incident
trends and patterns  concerning  reportable  incidents;  and  (iv)  make
recommendations  to  the  director of the facility or provider agency to
assist in reducing reportable incidents. Members of the committee  shall
be  trained  in  confidentiality  laws and regulations, and shall comply
with section seventy-four of the public officers law[.]; AND
  (G) SAFE STORAGE, ADMINISTRATION, AND  DIVERSION  PREVENTION  POLICIES
REGARDING CONTROLLED SUBSTANCES AND MEDICAL MARIHUANA.
  § 46. Subdivision 1 of section 505 of the agriculture and markets law,
as  added  by  chapter  524  of  the laws of 2014, is amended to read as
follows:
  1. "Industrial hemp" means the plant Cannabis sativa L. and  any  part
of  such  plant,  INCLUDING  THE  SEEDS  THEREOF  AND  ALL  DERIVATIVES,
EXTRACTS, CANNABINOIDS, ISOMERS, ACIDS, SALTS,  AND  SALTS  OF  ISOMERS,
whether  growing  or  not,  with  a delta-9 tetrahydrocannabinol concen-
tration of not more than 0.3 percent on a dry weight basis.
  § 47. Section 506 of the agriculture and markets law,  as  amended  by
section  1  of  part OO of chapter 58 of the laws of 2017, is amended to
read as follows:
  § 506. Growth, sale, distribution, transportation  and  processing  of
industrial hemp and products derived from such hemp permitted. [Notwith-
standing any provision of law to the contrary, industrial] 1. INDUSTRIAL
hemp and products derived from such hemp are agricultural products which
may  be  grown,  produced  [and],  possessed  [in the state, and], sold,
distributed, transported [or] AND/OR processed [either] in [or  out  of]
state  [as part of agricultural pilot programs pursuant to authorization
under federal law and  the  provisions  of  this  article]  PURSUANT  TO
AUTHORIZATION  UNDER  FEDERAL LAW, THE PROVISIONS OF THIS ARTICLE AND/OR
THE THE CANNABIS LAW.   [Notwithstanding any provision  of  law  to  the
contrary  restricting  the  growing  or cultivating, sale, distribution,
transportation or processing of industrial  hemp  and  products  derived
from such hemp, and subject to authorization under federal law, the]
  2. THE commissioner may authorize the growing or cultivating of indus-
trial  hemp  as  part  of  agricultural  pilot programs conducted by the
department and/or an institution of higher education to study the growth
and cultivation, sale, distribution, transportation  and  processing  of
such  hemp  and  products derived from such hemp provided that the sites
and programs used for growing or cultivating industrial hemp are  certi-
fied by, and registered with, the department.
  3.  IN  ADDITION  TO  THE DEPARTMENT'S LICENSING AUTHORITY HEREINAFTER
PROVIDED IN THIS  ARTICLE,  THE  OFFICE  OF  CANNABIS  MANAGEMENT  SHALL
LICENSE  AND REGULATE THE GROWTH, EXTRACTION, PROCESSING AND/OR MANUFAC-
TURING OF HEMP FOR DERIVATIVES, EXTRACTS, CANNABINOIDS, ISOMERS,  ACIDS,
SALTS  AND  SALTS  OR  ISOMERS  AND/OR HEMP PRODUCTS FOR HUMAN OR ANIMAL
CONSUMPTION OR USE (EXCEPT FOR THOSE FOOD AND/OR FOOD  INGREDIENTS  THAT
ARE GENERALLY RECOGNIZED AS SAFE).
  4. NOTHING IN THIS SECTION SHALL LIMIT THE JURISDICTION OF THE DEPART-
MENT UNDER ANY OTHER ARTICLE OF THE AGRICULTURE AND MARKETS LAW.

S. 1509                            187                           A. 2009

  § 48. Section 507 of the agriculture and markets law is REPEALED and a
new section 507 is added to read as follows:
  §  507.  LICENSING; FEES. 1. NO PERSON SHALL: (A) GROW INDUSTRIAL HEMP
IN THE STATE AND/OR SELL OR DISTRIBUTE  INDUSTRIAL  HEMP  GROWN  IN  THE
STATE  UNLESS LICENSED BIENNIALLY BY THE COMMISSIONER OR (B) GROW, PROC-
ESS AND/OR PRODUCE INDUSTRIAL HEMP AND PRODUCTS DERIVED FROM HEMP IN THE
STATE OR SELL OR DISTRIBUTE UNLESS AUTHORIZED  BY  THE  COMMISSIONER  AS
PART  OF  AN  AGRICULTURAL RESEARCH PILOT PROGRAM ESTABLISHED UNDER THIS
ARTICLE.
  2. APPLICATION FOR A LICENSE TO GROW INDUSTRIAL  HEMP  SHALL  BE  MADE
UPON A FORM PRESCRIBED BY THE COMMISSIONER, ACCOMPANIED BY A NON-REFUND-
ABLE APPLICATION FEE OF FIVE HUNDRED DOLLARS.
  3.  THE APPLICANT SHALL FURNISH EVIDENCE OF HIS OR HER GOOD CHARACTER,
EXPERIENCE AND COMPETENCY, THAT THE APPLICANT HAS  ADEQUATE  FACILITIES,
EQUIPMENT,  PROCESS  CONTROLS,  TESTING  CAPABILITY AND SECURITY TO GROW
HEMP.
  4. GROWERS WHO INTEND TO CULTIVATE HEMP FOR CANNABINOIDS SHALL ALSO BE
REQUIRED TO OBTAIN A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT.
  5. A RENEWAL APPLICATION SHALL BE SUBMITTED  TO  THE  COMMISSIONER  AT
LEAST THIRTY DAYS PRIOR TO THE COMMENCEMENT OF THE NEXT LICENSE PERIOD.
  § 49. Section 508 of the agriculture and markets law is REPEALED and a
new section 508 is added to read as follows:
  §  508.  COMPLIANCE ACTION PLAN. IF THE COMMISSIONER DETERMINES, AFTER
NOTICE AND AN OPPORTUNITY FOR HEARING, THAT A LICENSEE  HAS  NEGLIGENTLY
VIOLATED A PROVISION OF THIS ARTICLE, THAT LICENSEE SHALL BE REQUIRED TO
COMPLY  WITH A CORRECTIVE ACTION PLAN ESTABLISHED BY THE COMMISSIONER TO
CORRECT THE VIOLATION BY A REASONABLE DATE AND TO PERIODICALLY REPORT TO
THE COMMISSIONER WITH RESPECT TO THE  LICENSEE'S  COMPLIANCE  WITH  THIS
ARTICLE FOR A PERIOD OF NO LESS THAN THE NEXT TWO CALENDAR YEARS FOLLOW-
ING  THE COMMENCEMENT DATE OF THE COMPLIANCE ACTION PLAN. THE PROVISIONS
OF THIS SECTION SHALL NOT BE APPLICABLE TO RESEARCH PARTNERS  CONDUCTING
HEMP  RESEARCH  PURSUANT  TO  A RESEARCH PARTNER AGREEMENT, THE TERMS OF
WHICH SHALL CONTROL.
  § 50. Section 509 of the agriculture and markets law is REPEALED and a
new section 509 is added to read as follows:
  § 509. GRANTING, SUSPENDING OR REVOKING LICENSES.    THE  COMMISSIONER
MAY  DECLINE TO GRANT A NEW LICENSE, MAY DECLINE TO RENEW A LICENSE, MAY
SUSPEND OR REVOKE A LICENSE ALREADY GRANTED AFTER DUE NOTICE AND  OPPOR-
TUNITY FOR HEARING WHENEVER HE OR SHE FINDS THAT:
  (1)  ANY  STATEMENT  CONTAINED  IN  AN APPLICATION FOR AN APPLICANT OR
LICENSEE IS OR WAS FALSE OR MISLEADING;
  (2) THE APPLICANT OR  LICENSEE  DOES  NOT  HAVE  GOOD  CHARACTER,  THE
REQUIRED  EXPERIENCE  AND/OR COMPETENCY, ADEQUATE FACILITIES, EQUIPMENT,
PROCESS CONTROLS, TESTING CAPABILITY AND/OR SECURITY TO PRODUCE HEMP  OR
PRODUCTS DERIVED FROM HEMP;
  (3)  THE  APPLICANT  OR  LICENSEE HAS FAILED OR REFUSED TO PRODUCE ANY
RECORDS OR PROVIDE ANY INFORMATION DEMANDED BY THE COMMISSIONER  REASON-
ABLY RELATED TO THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE; OR
  (4)  THE  APPLICANT  OR  LICENSEE,  OR ANY OFFICER, DIRECTOR, PARTNER,
HOLDER OF TEN PERCENT OF THE VOTING STOCK, OR ANY OTHER PERSON  EXERCIS-
ING  ANY POSITION OF MANAGEMENT OR CONTROL HAS FAILED TO COMPLY WITH ANY
OF THE PROVISIONS OF THIS ARTICLE OR RULES AND  REGULATIONS  PROMULGATED
PURSUANT THERETO.
  § 51. Section 510 of the agriculture and markets law is REPEALED and a
new section 510 is added to read as follows:

S. 1509                            188                           A. 2009

  § 510. REGULATIONS.  THE COMMISSIONER MAY DEVELOP REGULATIONS CONSIST-
ENT WITH THE PROVISIONS OF THIS ARTICLE FOR THE GROWING AND CULTIVATION,
SALE,  DISTRIBUTION,  AND TRANSPORTATION OF INDUSTRIAL HEMP GROWN IN THE
STATE, INCLUDING:
  (A)  THE  AUTHORIZATION OR LICENSING OF ANY PERSON WHO MAY: ACQUIRE OR
POSSESS HEMP PLANTS OR SEEDS; GROW  OR  CULTIVATE  HEMP  PLANTS;  AND/OR
SELL,  PURCHASE,  DISTRIBUTE,  OR TRANSPORT SUCH PLANTS, PLANT PARTS, OR
SEEDS;
  (B) MAINTAINING RELEVANT INFORMATION REGARDING LAND  ON  WHICH  INDUS-
TRIAL HEMP IS PRODUCED WITHIN THE STATE, INCLUDING THE LEGAL DESCRIPTION
OF THE LAND, FOR A PERIOD OF NOT LESS THAN THREE CALENDAR YEARS;
  (C) THE PROCEDURE FOR TESTING OF INDUSTRIAL HEMP PRODUCED IN THE STATE
FOR  DELTA-9  TETRAHYDROCANNABINOL LEVELS, USING POST DECARBOXYLATION OR
OTHER SIMILARLY RELIABLE METHODS;
  (D) THE PROCEDURE FOR EFFECTIVE DISPOSAL OF INDUSTRIAL HEMP PLANTS  OR
PRODUCTS  DERIVED FROM HEMP THAT ARE PRODUCED IN VIOLATION OF THIS ARTI-
CLE;
  (E) A PROCEDURE FOR CONDUCTING AT LEAST A RANDOM SAMPLE OF  INDUSTRIAL
HEMP  PRODUCERS TO VERIFY THAT HEMP IS NOT PRODUCED IN VIOLATION OF THIS
ARTICLE;
  (F) ANY REQUIRED SECURITY MEASURES; AND
  (G) SUCH OTHER AND FURTHER REGULATION AS THE COMMISSIONER DEEMS APPRO-
PRIATE OR NECESSARY.
  § 52. Section 511 of the agriculture and markets law is REPEALED and a
new section 511 is added to read as follows:
  § 511. PROHIBITIONS.  EXCEPT AS AUTHORIZED BY  STATE  LAW,  AND  REGU-
LATIONS  PROMULGATED  THEREUNDER,  THE  GROWTH, CULTIVATION, PROCESSING,
SALE, AND/OR DISTRIBUTION OF INDUSTRIAL HEMP IS PROHIBITED.
  § 53. Section 512 of the agriculture and markets law is REPEALED and a
new section 512 is added to read as follows:
  § 512. INDUSTRIAL HEMP DATA COLLECTION  AND  BEST  FARMING  PRACTICES.
THE  COMMISSIONER  SHALL  HAVE THE POWER TO COLLECT AND PUBLISH DATA AND
RESEARCH  CONCERNING,  AMONG  OTHER  THINGS,  THE  GROWTH,  CULTIVATION,
PRODUCTION  AND  PROCESSING  METHODS  OF  INDUSTRIAL  HEMP  AND PRODUCTS
DERIVED FROM INDUSTRIAL HEMP  AND  WORK  WITH  THE  CORNELL  COOPERATIVE
EXTENSION  TO  PROMOTE  BEST FARMING PRACTICES FOR INDUSTRIAL HEMP WHICH
ARE COMPATIBLE WITH STATE WATER QUALITY AND OTHER  ENVIRONMENTAL  OBJEC-
TIVES.
  §  54.  Sections  513  and  514 of the agriculture and markets law are
REPEALED and a new section 513 is added to read as follows:
  § 513. ACCESS TO CRIMINAL HISTORY INFORMATION THROUGH THE DIVISION  OF
CRIMINAL  JUSTICE  SERVICES.    IN CONNECTION WITH THE ADMINISTRATION OF
THIS ARTICLE, THE COMMISSIONER IS AUTHORIZED  TO  REQUEST,  RECEIVE  AND
REVIEW  CRIMINAL  HISTORY  INFORMATION  THROUGH THE DIVISION OF CRIMINAL
JUSTICE SERVICES (DIVISION) WITH RESPECT TO ANY PERSON SEEKING A LICENSE
OR AUTHORIZATION TO UNDERTAKE A HEMP PILOT PROJECT. AT  THE  COMMISSION-
ER'S REQUEST, EACH RESEARCHER, PRINCIPAL AND/OR OFFICER OF THE APPLICANT
SHALL  SUBMIT TO THE DEPARTMENT HIS OR HER FINGERPRINTS IN SUCH FORM AND
IN SUCH MANNER AS SPECIFIED BY THE DIVISION, FOR THE PURPOSE OF CONDUCT-
ING A CRIMINAL HISTORY SEARCH AND RETURNING A REPORT THEREON IN  ACCORD-
ANCE  WITH  THE  PROCEDURES AND REQUIREMENTS ESTABLISHED BY THE DIVISION
PURSUANT TO THE PROVISIONS OF ARTICLE THIRTY-FIVE OF THE EXECUTIVE  LAW,
WHICH  SHALL  INCLUDE  THE PAYMENT OF THE PRESCRIBED PROCESSING FEES FOR
THE COST OF THE DIVISION'S FULL  SEARCH  AND  RETAIN  PROCEDURES  AND  A
NATIONAL  CRIMINAL HISTORY RECORD CHECK. THE COMMISSIONER, OR HIS OR HER
DESIGNEE, SHALL SUBMIT SUCH FINGERPRINTS AND THE PROCESSING FEE  TO  THE

S. 1509                            189                           A. 2009

DIVISION.   THE DIVISION SHALL FORWARD TO THE COMMISSIONER A REPORT WITH
RESPECT TO THE APPLICANT'S PREVIOUS  CRIMINAL  HISTORY,  IF  ANY,  OR  A
STATEMENT  THAT THE APPLICANT HAS NO PREVIOUS CRIMINAL HISTORY ACCORDING
TO ITS FILES. FINGERPRINTS SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE
SERVICES  PURSUANT  TO  THIS  SUBDIVISION  MAY  ALSO BE SUBMITTED TO THE
FEDERAL BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL  HISTORY  RECORD
CHECK.  IF ADDITIONAL COPIES OF FINGERPRINTS ARE REQUIRED, THE APPLICANT
SHALL FURNISH THEM UPON REQUEST.
  § 55. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the  penal
law,  as added by chapter 90 of the laws of 2014, are amended to read as
follows:
§ 179.00 Criminal  diversion  of  medical  [marihuana]  CANNABIS;  defi-
           nitions.
  The following definitions are applicable to this article:
  1.  "Medical  [marihuana] CANNABIS" means medical [marihuana] CANNABIS
as defined in [subdivision eight of section thirty-three  hundred  sixty
of the public health law] SECTION THREE OF THE CANNABIS LAW.
  2.  "Certification" means a certification, made under section [thirty-
three hundred sixty-one of the public health law] THIRTY OF THE CANNABIS
LAW.
§ 179.05 Criminal diversion of  medical  [marihuana]  CANNABIS;  limita-
           tions.
  The provisions of this article shall not apply to:
  1.  a  practitioner  authorized  to issue a certification who acted in
good faith in the lawful course of his or her profession; or
  2. a registered organization as that term is defined  in  [subdivision
nine  of  section  thirty-three  hundred sixty of the public health law]
SECTION THIRTY-FOUR OF THE CANNABIS LAW who acted in good faith  in  the
lawful course of the practice of pharmacy; or
  3.  a  person  who acted in good faith seeking treatment for A medical
condition or assisting another person to obtain treatment for a  medical
condition.
§ 179.10 Criminal diversion of medical [marihuana] CANNABIS in the first
           degree.
  A person is guilty of criminal diversion of medical [marihuana] CANNA-
BIS  in  the first degree when he or she is a practitioner, as that term
is defined in [subdivision twelve of section thirty-three hundred  sixty
of  the public health law] SECTION THREE OF THE CANNABIS LAW, who issues
a certification with knowledge of reasonable grounds to  know  that  (i)
the  recipient  has  no medical need for it, or (ii) it is for a purpose
other than to treat a serious condition as defined in [subdivision seven
of section thirty-three hundred sixty of the public health law]  SECTION
THREE OF THE CANNABIS LAW.
  Criminal diversion of medical [marihuana] CANNABIS in the first degree
is a class E felony.
§ 179.11 Criminal  diversion  of  medical  [marihuana]  CANNABIS  in the
           second degree.
  A person is guilty of criminal diversion of medical [marihuana] CANNA-
BIS in the second degree when he or  she  sells,  trades,  delivers,  or
otherwise  provides  medical  [marihuana] CANNABIS to another with know-
ledge or reasonable grounds to know that the recipient is not registered
under [title five-A of article thirty-three of the  public  health  law]
ARTICLE THREE OF THE CANNABIS LAW.
  Criminal  diversion  of  medical  [marihuana]  CANNABIS  in the second
degree is a class B misdemeanor.
§ 179.15 Criminal retention of medical [marihuana] CANNABIS.

S. 1509                            190                           A. 2009

  A person is guilty of criminal retention of medical [marihuana] CANNA-
BIS when, being a certified patient or designated  caregiver,  as  those
terms  are  defined  in  [subdivisions three and five of section thirty-
three hundred sixty of the  public  health  law,  respectively]  SECTION
THREE  OF  THE  CANNABIS  LAW,  he  or she knowingly obtains, possesses,
stores or maintains an amount of [marihuana] CANNABIS in excess  of  the
amount he or she is authorized to possess under the provisions of [title
five-A  of  article thirty-three of the public health law] ARTICLE THREE
OF THE CANNABIS LAW.
  Criminal retention of medical [marihuana] CANNABIS is a class A misde-
meanor.
  § 56. Section 220.78 of the penal law, as added by chapter 154 of  the
laws of 2011, is amended to read as follows:
§ 220.78 Witness or victim of drug or alcohol overdose.
  1.  A  person who, in good faith, seeks health care for someone who is
experiencing a drug  or  alcohol  overdose  or  other  life  threatening
medical  emergency  shall  not be charged or prosecuted for a controlled
substance offense under article two  hundred  twenty  or  a  [marihuana]
CANNABIS  offense  under  article  two hundred twenty-one of this title,
other than an offense involving sale for consideration or other  benefit
or  gain, or charged or prosecuted for possession of alcohol by a person
under age twenty-one years under section sixty-five-c of  the  alcoholic
beverage  control  law,  or  for  possession of drug paraphernalia under
article thirty-nine of the general business law,  with  respect  to  any
controlled  substance,  [marihuana]  CANNABIS,  alcohol or paraphernalia
that was obtained as a result of such seeking  or  receiving  of  health
care.
  2.  A  person  who is experiencing a drug or alcohol overdose or other
life threatening medical emergency and, in good faith, seeks health care
for himself or herself or is the subject of such a  good  faith  request
for  health  care,  shall  not be charged or prosecuted for a controlled
substance offense under this article or a [marihuana]  CANNABIS  offense
under  article  two  hundred  twenty-one  of  this  title, other than an
offense involving sale for consideration or other benefit  or  gain,  or
charged  or  prosecuted  for possession of alcohol by a person under age
twenty-one years under section sixty-five-c of  the  alcoholic  beverage
control law, or for possession of drug paraphernalia under article thir-
ty-nine  of  the  general  business  law, with respect to any substance,
[marihuana] CANNABIS, alcohol or paraphernalia that was  obtained  as  a
result of such seeking or receiving of health care.
  3. Definitions. As used in this section the following terms shall have
the following meanings:
  (a)  "Drug or alcohol overdose" or "overdose" means an acute condition
including, but not limited to, physical illness, coma,  mania,  hysteria
or  death,  which  is  the  result of consumption or use of a controlled
substance or alcohol and relates to an adverse reaction to or the  quan-
tity  of  the  controlled substance or alcohol or a substance with which
the controlled substance  or  alcohol  was  combined;  provided  that  a
patient's  condition shall be deemed to be a drug or alcohol overdose if
a prudent layperson, possessing an average  knowledge  of  medicine  and
health, could reasonably believe that the condition is in fact a drug or
alcohol overdose and (except as to death) requires health care.
  (b) "Health care" means the professional services provided to a person
experiencing  a  drug  or alcohol overdose by a health care professional
licensed, registered or certified under title eight of the education law
or article thirty of the public health law who, acting within his or her

S. 1509                            191                           A. 2009

lawful scope of practice, may provide diagnosis, treatment or  emergency
services for a person experiencing a drug or alcohol overdose.
  4.  It  shall  be an affirmative defense to a criminal sale controlled
substance offense under this article or a criminal sale  of  [marihuana]
CANNABIS offense under article two hundred twenty-one of this title, not
covered  by  subdivision one or two of this section, with respect to any
controlled substance or [marihuana] CANNABIS which  was  obtained  as  a
result of such seeking or receiving of health care, that:
  (a) the defendant, in good faith, seeks health care for someone or for
him  or  herself who is experiencing a drug or alcohol overdose or other
life threatening medical emergency; and
  (b) the defendant has  no  prior  conviction  for  the  commission  or
attempted  commission  of a class A-I, A-II or B felony under this arti-
cle.
  5. Nothing in this section shall be construed to bar the admissibility
of any evidence in connection with the investigation and prosecution  of
a  crime  with  regard  to  another defendant who does not independently
qualify for the bar to prosecution or for the affirmative  defense;  nor
with  regard  to other crimes committed by a person who otherwise quali-
fies under this section; nor shall anything in this section be construed
to bar any seizure pursuant to law, including but not limited to  pursu-
ant  to  section  thirty-three hundred eighty-seven of the public health
law.
  6. The bar to prosecution described in subdivisions  one  and  two  of
this  section  shall  not apply to the prosecution of a class A-I felony
under this article, and the affirmative defense described in subdivision
four of this section shall not apply to the prosecution of a  class  A-I
or A-II felony under this article.
  §  57. Subdivision 1 of section 260.20 of the penal law, as amended by
chapter 362 of the laws of 1992, is amended as follows:
  1. He knowingly permits a child less than eighteen years old to  enter
or  remain  in  or  upon a place, premises or establishment where sexual
activity as defined by article one hundred thirty, two hundred thirty or
two hundred sixty-three of this [chapter]  PART  or  activity  involving
controlled  substances  as defined by article two hundred twenty of this
[chapter or involving marihuana as defined by article two hundred  twen-
ty-one of this chapter] PART is maintained or conducted, and he knows or
has  reason to know that such activity is being maintained or conducted;
or
  § 58. Section 89-h of the state finance law, as added by chapter 90 of
the laws of 2014, is amended to read as follows:
  § 89-h. Medical [marihuana] CANNABIS trust fund. 1.  There  is  hereby
established  in  the  joint  custody  of  the  state comptroller and the
commissioner of taxation and finance a special fund to be known  as  the
"medical [marihuana] CANNABIS trust fund."
  2.  The  medical  [marihuana] CANNABIS trust fund shall consist of all
moneys required to be deposited  in  the  medical  [marihuana]  CANNABIS
trust  fund pursuant to the provisions of section four hundred ninety of
the tax law.
  3. The moneys in the medical [marihuana] CANNABIS trust fund shall  be
kept  separate  and shall not be commingled with any other moneys in the
custody of the commissioner of taxation and finance and the state  comp-
troller.
  4.  The moneys of the medical [marihuana] CANNABIS trust fund, follow-
ing appropriation by the legislature, shall be allocated upon a  certif-
icate  of  approval  of  availability  by  the director of the budget as

S. 1509                            192                           A. 2009

follows:  (a) Twenty-two and five-tenths percent of the monies shall  be
transferred  to  the  counties  in  New  York state in which the medical
[marihuana] CANNABIS was manufactured and allocated in proportion to the
gross  sales  originating from medical [marihuana] CANNABIS manufactured
in each such county; (b)  twenty-two  and  five-tenths  percent  of  the
moneys  shall  be transferred to the counties in New York state in which
the medical [marihuana] CANNABIS was dispensed and allocated in  propor-
tion  to the gross sales occurring in each such county; (c) five percent
of the monies shall be transferred  to  the  office  of  alcoholism  and
substance  abuse  services,  which shall use that revenue for additional
drug abuse prevention, counseling and treatment services; and  (d)  five
percent  of  the revenue received by the department shall be transferred
to the division of criminal  justice  services,  which  shall  use  that
revenue  for  a  program  of discretionary grants to state and local law
enforcement agencies that demonstrate a need relating to  [title  five-A
of  article  thirty-three of the public health law] ARTICLE THREE OF THE
CANNABIS LAW; said grants could be used for personnel costs of state and
local law enforcement agencies. For purposes of  this  subdivision,  the
city of New York shall be deemed to be a county.
  § 59. Intentionally omitted.
  §  60.  The state finance law is amended by adding a new section 99-ff
to read as follows:
  § 99-FF. NEW YORK STATE CANNABIS REVENUE  FUND.  1.  THERE  IS  HEREBY
ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
"NEW YORK STATE CANNABIS REVENUE FUND" (THE "FUND").
  2.  MONIES  IN  THE  FUND SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE
COMMINGLED WITH ANY OTHER MONIES IN THE CUSTODY OF  THE  COMPTROLLER  OR
THE  COMMISSIONER  OF  TAXATION  AND FINANCE. PROVIDED, HOWEVER THAT ANY
MONIES OF THE FUND NOT REQUIRED FOR IMMEDIATE USE MAY, AT THE DISCRETION
OF THE COMPTROLLER, IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET,  BE
INVESTED  BY  THE COMPTROLLER IN OBLIGATIONS OF THE UNITED STATES OR THE
STATE. THE PROCEEDS OF ANY SUCH INVESTMENT SHALL BE RETAINED BY THE FUND
AS ASSETS TO BE USED FOR PURPOSES OF THE FUND.
  3. EXCEPT AS SET FORTH IN SUBDIVISIONS TWO AND FOUR OF  THIS  SECTION,
MONIES  FROM THE FUND SHALL NOT BE USED TO MAKE PAYMENTS FOR ANY PURPOSE
OTHER THAN THE PURPOSES SET FORTH IN SUBDIVISIONS TWO AND FOUR  OF  THIS
SECTION.
  4.  THE "NEW YORK STATE CANNABIS REVENUE FUND" SHALL CONSIST OF MONIES
RECEIVED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO  SUBDI-
VISIONS  (A) AND (B) OF SECTION FOUR HUNDRED NINETY-THREE OF THE TAX LAW
AND ALL OTHER MONIES CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND
OR SOURCE. MONIES OF SUCH FUND  SHALL  BE  EXPENDED  FOR  THE  FOLLOWING
PURPOSES: ADMINISTRATION OF THE REGULATED CANNABIS PROGRAM, DATA GATHER-
ING,  MONITORING AND REPORTING, THE GOVERNOR'S TRAFFIC SAFETY COMMITTEE,
SMALL BUSINESS DEVELOPMENT AND LOANS, SUBSTANCE  ABUSE,  HARM  REDUCTION
AND  MENTAL HEALTH TREATMENT AND PREVENTION, PUBLIC HEALTH EDUCATION AND
INTERVENTION, RESEARCH ON CANNABIS USES AND APPLICATIONS, PROGRAM EVALU-
ATION AND IMPROVEMENTS, AND ANY OTHER IDENTIFIED PURPOSE RECOMMENDED  BY
THE EXECUTIVE DIRECTOR OF THE OFFICE OF CANNABIS MANAGEMENT AND APPROVED
BY THE DIRECTOR OF THE BUDGET.
  §  61.  Subdivision  2  of  section  3371 of the public health law, as
amended by chapter 90 of the  laws  of  2014,  is  amended  to  read  as
follows:
  2. The prescription monitoring program registry may be accessed, under
such  terms  and  conditions  as  are  established by the department for

S. 1509                            193                           A. 2009

purposes of maintaining the security and confidentiality of the informa-
tion contained in the registry, by:
  (a)  a  practitioner,  or  a  designee authorized by such practitioner
pursuant to paragraph (b) of subdivision  two  of  section  thirty-three
hundred  forty-three-a or section thirty-three hundred sixty-one of this
article, for the purposes of: (i)  informing  the  practitioner  that  a
patient  may  be  under treatment with a controlled substance by another
practitioner; (ii) providing  the  practitioner  with  notifications  of
controlled  substance  activity  as  deemed  relevant by the department,
including but not limited to a notification made available on a  monthly
or  other  periodic  basis through the registry of controlled substances
activity pertaining to his or her patient; (iii)  allowing  the  practi-
tioner,  through  consultation  of  the  prescription monitoring program
registry, to review his or her patient's controlled  substances  history
as  required  by  section thirty-three hundred forty-three-a [or section
thirty-three hundred sixty-one] of this article; and (iv)  providing  to
his  or  her  patient, or person authorized pursuant to paragraph (j) of
subdivision one of this section, upon request, a copy of such  patient's
controlled substance history as is available to the practitioner through
the prescription monitoring program registry; or
  (b)  a pharmacist, pharmacy intern or other designee authorized by the
pharmacist pursuant to paragraph (b) of  subdivision  three  of  section
thirty-three hundred forty-three-a of this article, for the purposes of:
(i)  consulting  the  prescription monitoring program registry to review
the controlled substances history of an individual for whom one or  more
prescriptions  for controlled substances or certifications for marihuana
is presented to the pharmacist, pursuant to section thirty-three hundred
forty-three-a of this article; and (ii) receiving  from  the  department
such  notifications  of controlled substance activity as are made avail-
able by the department; or
  (c) an individual  employed  by  a  registered  organization  for  the
purpose  of  consulting  the prescription monitoring program registry to
review the controlled substances history of an individual for  whom  one
or  more  certifications  for  [marihuana] CANNABIS is presented to that
registered  organization[,  pursuant  to  section  thirty-three  hundred
sixty-four  of  this article]. Unless otherwise authorized by this arti-
cle, an  individual  employed  by  a  registered  organization  will  be
provided  access  to  the  prescription  monitoring  program in the sole
discretion of the commissioner.
  § 62. Subdivision 3 of section 853 of the  general  business  law,  as
added by chapter 90 of the laws of 2014, is amended to read as follows:
  3.  This article shall not apply to any sale, furnishing or possession
which is for a lawful purpose under [title  five-A  of  article  thirty-
three of the public health law] THE CANNABIS LAW.
  §  63.  Subdivision 5 of section 410.91 of the criminal procedure law,
as amended by chapter 90 of the laws of 2014,  is  amended  to  read  as
follows:
  5.  For  the  purposes  of  this  section, a "specified offense" is an
offense defined by any of the following provisions  of  the  penal  law:
burglary  in  the  third  degree  as defined in section 140.20, criminal
mischief in the third degree as  defined  in  section  145.05,  criminal
mischief in the second degree as defined in section 145.10, grand larce-
ny in the fourth degree as defined in subdivision one, two, three, four,
five,  six,  eight,  nine or ten of section 155.30, grand larceny in the
third degree as defined in section 155.35  (except  where  the  property
consists  of one or more firearms, rifles or shotguns), unauthorized use

S. 1509                            194                           A. 2009

of a vehicle in the second degree as defined in section 165.06, criminal
possession of stolen property in the fourth degree as defined in  subdi-
vision  one,  two,  three,  five  or  six  of  section  165.45, criminal
possession  of stolen property in the third degree as defined in section
165.50 (except where the property consists  of  one  or  more  firearms,
rifles  or shotguns), forgery in the second degree as defined in section
170.10, criminal possession of a forged instrument in the second  degree
as defined in section 170.25, unlawfully using slugs in the first degree
as  defined in section 170.60, criminal diversion of medical [marihuana]
CANNABIS in the first degree as defined in section 179.10 or an  attempt
to commit any of the aforementioned offenses if such attempt constitutes
a  felony  offense;  or  a class B felony offense defined in article two
hundred twenty where a sentence is imposed pursuant to paragraph (a)  of
subdivision two of section 70.70 of the penal law; or any class C, class
D or class E controlled substance [or marihuana] CANNABIS felony offense
as defined in article two hundred twenty or two hundred twenty-one.
  § 63-a. Subdivision 5 of section 410.91 of the criminal procedure law,
as  amended  by section 8 of part AAA of chapter 56 of the laws of 2009,
is amended to read as follows:
  5. For the purposes of this  section,  a  "specified  offense"  is  an
offense  defined  by  any  of the following provisions of the penal law:
burglary in the third degree as  defined  in  section  140.20,  criminal
mischief  in  the  third  degree  as defined in section 145.05, criminal
mischief in the second degree as defined in section 145.10, grand larce-
ny in the fourth degree as defined in subdivision one, two, three, four,
five, six, eight, nine or ten of section 155.30, grand  larceny  in  the
third  degree  as  defined  in section 155.35 (except where the property
consists of one or more firearms, rifles or shotguns), unauthorized  use
of a vehicle in the second degree as defined in section 165.06, criminal
possession  of stolen property in the fourth degree as defined in subdi-
vision one,  two,  three,  five  or  six  of  section  165.45,  criminal
possession  of stolen property in the third degree as defined in section
165.50 (except where the property consists  of  one  or  more  firearms,
rifles  or shotguns), forgery in the second degree as defined in section
170.10, criminal possession of a forged instrument in the second  degree
as defined in section 170.25, unlawfully using slugs in the first degree
as  defined in section 170.60, or an attempt to commit any of the afore-
mentioned offenses if such attempt constitutes a felony  offense;  or  a
class  B  felony  offense  defined in article two hundred twenty where a
sentence is imposed pursuant to paragraph  (a)  of  subdivision  two  of
section  70.70  of  the  penal  law;  or any class C, class D or class E
controlled substance or [marihuana] CANNABIS felony offense  as  defined
in article two hundred twenty or two hundred twenty-one.
  §  64.  This act shall take effect immediately; provided, however that
sections thirty-seven and thirty-eight of this act shall take effect  on
April 1, 2020, and shall apply on and after such date: (a) to the culti-
vation  of cannabis flower and cannabis trim transferred by a cultivator
who is not a wholesaler; (b) to the cultivation of cannabis  flower  and
cannabis trim sold or transferred to a retail dispensary by a cultivator
who is a wholesaler; and (c) to the sale or transfer of adult use canna-
bis  products to a retail dispensary; provided, further, that the amend-
ments to article 179 of the penal law made by section fifty-five of this
act shall not affect the repeal of such article and shall be  deemed  to
be  repealed therewith; provided further, that the amendments to section
89-h of the state finance law made by section fifty-eight  of  this  act
shall not affect the repeal of such section and shall be deemed repealed

S. 1509                            195                           A. 2009

therewith;  provided  further,  that the amendments to section 221.00 of
the penal law made by section fifteen of this act shall  be  subject  to
the  expiration  of  such  section when upon such date the provisions of
section fifteen-a of this act shall take effect; provided, however, that
the amendments to subdivision 2 of section 3371 of the public health law
made by section sixty-one of this act shall not affect the expiration of
such  subdivision  and  shall  be  deemed  to expire therewith; provided
further, that the amendments to subdivision 3  of  section  853  of  the
general  business  law  made  by section sixty-two of this act shall not
affect the repeal of such subdivision and shall be deemed to be repealed
therewith; and provided further, that the amendments to subdivision 5 of
section 410.91 of the penal law made by section sixty-three of this  act
shall  be  subject  to  the expiration and reversion of such subdivision
when upon such date the provisions of section sixty-three-a of this  act
shall take effect.

                                 PART WW

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

S. 1509                            196                           A. 2009

SIXTY-SIX-A  OF THIS ARTICLE, BUT WHICH IS A RETAIL SALE OF SUCH PASSEN-
GER CAR WITHIN THE STATE.
  (B)  EXCEPT  TO  THE  EXTENT  THAT A PASSENGER CAR RENTAL DESCRIBED IN
SUBDIVISION  (A)  OF  THIS  SECTION  OR    IN  SECTION  ELEVEN   HUNDRED
SIXTY-SIX-A OF THIS ARTICLE, HAS ALREADY BEEN SUBJECT TO THE TAX IMPOSED
UNDER  SUCH  SUBDIVISION  OR  SECTION,  AND EXCEPT AS OTHERWISE EXEMPTED
UNDER THIS ARTICLE, THERE IS HEREBY IMPOSED ON EVERY  PERSON  AND  THERE
SHALL  BE  PAID  A USE TAX FOR THE USE WITHIN THE STATE OF ANY PASSENGER
CAR RENTED BY THE USER THAT IS A PURCHASE AT RETAIL  OF  SUCH  PASSENGER
CAR, BUT NOT INCLUDING ANY LEASE OF A PASSENGER CAR TO WHICH SUBDIVISION
(I)  OF  SECTION  ELEVEN  HUNDRED  ELEVEN  OF  THIS CHAPTER APPLIES. FOR
PURPOSES OF THIS SUBDIVISION, THE TAX SHALL  BE  AT  THE  RATE  OF  FIVE
PERCENT  OF  THE  CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR SUCH
PROPERTY, OR FOR THE USE OF SUCH PROPERTY,  INCLUDING  ANY  CHARGES  FOR
SHIPPING  OR DELIVERY AS DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (B)
OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER, BUT EXCLUDING ANY  CREDIT
FOR TANGIBLE PERSONAL PROPERTY ACCEPTED IN PART PAYMENT AND INTENDED FOR
RESALE.
  § 3. Section 1167 of the tax law, as amended by section 3 of part F of
chapter 25 of the laws of 2009, is amended to read as follows:
  §  1167.  Deposit  and disposition of revenue. All taxes, interest and
penalties collected or received by the commissioner under  this  article
shall be deposited and disposed of pursuant to the provisions of section
one  hundred  seventy-one-a of this chapter, except that after reserving
amounts in accordance with such section  one  hundred  seventy-one-a  of
this  chapter,  the  remainder  shall  be paid by the comptroller to the
credit of the highway and  bridge  trust  fund  established  by  section
eighty-nine-b of the state finance law, provided, however[,]: (A) taxes,
interest  and penalties collected or received pursuant to section eleven
hundred sixty-six-a of this article shall be paid to the credit  of  the
metropolitan transportation authority aid trust account of the metropol-
itan  transportation  authority financial assistance fund established by
section ninety-two-ff of the state finance law; AND (B) TAXES,  INTEREST
AND  PENALTIES  COLLECTED OR RECEIVED PURSUANT TO SECTION ELEVEN HUNDRED
SIXTY-SIX-B OF THIS ARTICLE SHALL BE PAID TO THE CREDIT  OF  THE  PUBLIC
TRANSPORTATION  SYSTEMS  OPERATING  ASSISTANCE  ACCOUNT  ESTABLISHED  BY
SECTION EIGHTY-EIGHT-A OF THE STATE FINANCE LAW.
  § 4. This act shall take effect September 1, 2019, and shall apply  to
rentals  of  passenger cars commencing on and after such date whether or
not under a prior contract; provided, however where such  passenger  car
rentals  are  billed  on a monthly, quarterly or other period basis, the
tax imposed by this act shall apply to the rental  for  such  period  if
more  than  half of the days included in such period are days subsequent
to such effective date.
  § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  §  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through WW of this act shall be
as specifically set forth in the last section of such Parts.

                    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), ta