The New York State Senate

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

    S. 7509                                                  A. 9509

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

                            January 22, 2020
                               ___________

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 59 of the laws of 2017, amending the
  tax law, relating to the financial institution data match  system  for
  state  tax  collection purposes, in relation to making such provisions
  permanent; and to amend part Q of chapter 59  of  the  laws  of  2013,
  amending  the  tax  law  relating  to serving an income execution with
  respect to  individual  tax  debtors  without  filing  a  warrant,  in
  relation  to  making  such provisions permanent (Part A); to amend the
  tax law, in relation to extending hire a veteran credit for  an  addi-
  tional  two  years (Part B); to amend chapter 540 of the laws of 1992,
  amending the real property tax law relating to oil and gas charges, in
  relation to the effectiveness thereof (Part C); to amend the tax  law,
  in  relation  to  reducing the burden on small businesses (Part D); to
  amend the tax law, in relation to capping the maximum  amount  of  the
  long-term care insurance credit (Part E); to amend the tax law and the
  administrative  code  of the city of New York, in relation to allowing
  the department of taxation  and  finance  to  provide  taxpayers  with
  unclaimed  tax  benefits  relating  to  the  earned  income credit and
  deductions (Part F); to amend the tax law, in relation  to  the  defi-
  nition  of  a qualifying child for purposes of the  empire state child
  credit (Part G); to amend the tax law, in relation  to  reforming  the
  tobacco products tax (Part H); to amend the alcoholic beverage control
  law  and  the tax law, in relation to the suspension and revocation of
  certain licenses and certificates issued under such laws (Part I);  to
  amend  the tax law, in relation to the tax imposed on alcoholic bever-
  ages and the annual reporting requirements imposed on alcoholic bever-
  age producers (Part J); to amend the tax law, in relation to  updating
  the criminal tax fraud statutes and to establish the offenses of crim-
  inal tax preparation in the second degree and criminal tax preparation
  in  the  first  degree (Part K); to amend the economic development law
  and the tax law, in relation to the excelsior jobs program and certain

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12674-04-0

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  incentives for green projects within such program (Part L);  to  amend
  the  tax  law,  in relation to the empire state film production credit
  and the empire state film post production credit (Part  M);  to  amend
  the real property tax law, in relation to converted condominiums (Part
  N);  to  amend the tax law, in relation to state support for the local
  enforcement of past-due property taxes (Part O);  to  amend  the  real
  property  tax  law, in relation to providing for the appointment of an
  acting director of real property tax services in the event  the  posi-
  tion  becomes  vacant (Part P); to amend the real property law and tax
  law, in relation to the electronic  submission  of  consolidated  real
  property  transfer  forms;  and  to  repeal paragraphs vii and viii of
  subdivision 1-e of section 333 of the real property law relating ther-
  eto (Part Q); to amend the public lands law, the  real  property  law,
  and  the  real  property  tax law, in relation to the functions of the
  state board of real property  tax  services;  and  to  repeal  certain
  provisions  of  the real property tax law related thereto (Part R); to
  repeal certain provisions of the real property tax  law  and  the  tax
  law,  in  relation  to  removing  references to the former STAR offset
  program (Part S); to amend the real property tax law, in  relation  to
  assessment  ceilings  for railroads and local public utility mass real
  property; and to repeal section 3 of chapter 475 of the laws  of  2013
  amending the real property tax law relating to assessment ceilings for
  local  public  utility  mass real property (Part T); to amend the real
  property tax law, in relation to extending the period  for  enrollment
  in the STAR income verification program (Part U); to amend the racing,
  pari-mutuel  wagering and breeding law and the tax law, in relation to
  financing and constructing a new equine drug testing laboratory  (Part
  V);  to  amend  the  racing, pari-mutuel wagering and breeding law, in
  relation to enacting the interstate compact on  anti-doping  and  drug
  testing  standards (Part W); to amend the racing, pari-mutuel wagering
  and breeding law, in  relation  to  restrictions  on  sports  wagering
  lounges  in  casinos  (Part X); to amend the tax law, in relation to a
  keno style lottery game (Part Y); 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 breed-
  ing law and other laws relating to simulcasting and chapter 346 of the
  laws of 1990 amending the racing, pari-mutuel  wagering  and  breeding
  law  and  other  laws  relating  to simulcasting and the imposition of
  certain taxes, in relation to extending  certain  provisions  thereof;
  and  to  amend  the  racing, pari-mutuel wagering and breeding law, in
  relation to extending certain provisions thereof (Part  Z);  to  amend
  the  real  property  tax  law, in relation to the income limit for the
  basic STAR exemption (Part AA); and 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,

S. 7509                             3                            A. 9509

  consumption, display, production or distribution of cannabis; to amend
  the  tax  law,  in  relation  to providing for the levying of taxes on
  cannabis; to amend the criminal procedure law, the civil practice  law
  and  rules,  the  general business law, the alcoholic beverage control
  law, the general obligations law, the social services law,  the  state
  finance  law,  the  penal  law  and  the  vehicle  and traffic law, in
  relation to making conforming changes; 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  proce-
  dure  law  relating  to  medical  use of marihuana, in relation to the
  effectiveness thereof; to repeal title 5-A of article 33 of the public
  health law relating to medical use of  marihuana;  to  repeal  article
  29-A  of the agriculture and markets law relating to the regulation of
  hemp extract; to repeal subdivision 4 of section 220.06  and  subdivi-
  sion  10  of  section  220.09  of  the  penal law relating to criminal
  possession of a controlled substance; to repeal  sections  221.10  and
  221.30  of  the penal law relating to the criminal possession of mari-
  huana; and to repeal paragraph (f) of subdivision 2 of section 850  of
  the  general business law relating to drug related paraphernalia (Part
  BB)

  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 2020-2021
state fiscal year. Each component is  wholly  contained  within  a  Part
identified as Parts A through BB. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of  this  act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding  section  of  the
Part  in  which  it  is  found. Section three of this act sets forth the
general effective date of this act.

                                 PART A

  Section 1. Section 2 of part U of chapter 59  of  the  laws  of  2017,
amending  the  tax law, relating to the financial institution data match
system for state tax collection purposes, is amended to read as follows:
  § 2. This act shall take effect immediately [and shall expire April 1,
2020 when upon such date the provisions of  this  act  shall  be  deemed
repealed].
  §  2.  Section 2 of part Q of chapter 59 of the laws of 2013, amending
the tax law, relating to serving an income  execution  with  respect  to
individual tax debtors without filing a warrant, as amended by section 1
of  part  X  of  chapter  59  of the laws of 2017, is amended to read as
follows:
  § 2. This act shall take effect immediately [and shall expire  and  be
deemed repealed on and after April 1, 2020].
  § 3. This act shall take effect immediately.

                                 PART B

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  Section 1. Paragraph (a) and subparagraph 2 of paragraph (b) of subdi-
vision  29  of  section 210-B of the tax law, as amended by section 1 of
part Q of chapter 59 of the  laws  of  2018,  are  amended  to  read  as
follows:
  (a) Allowance of credit. For taxable years beginning on or after Janu-
ary  first,  two thousand fifteen and before January first, two thousand
[twenty-one] TWENTY-THREE, a taxpayer shall be allowed a credit,  to  be
computed  as  provided  in  this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than one  year  and
for not less than thirty-five hours each week, a qualified veteran with-
in the state. The taxpayer may claim the credit in the year in which the
qualified  veteran  completes one year of employment by the taxpayer. If
the taxpayer claims the  credit  allowed  under  this  subdivision,  the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.
  (2) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand [twenty] TWENTY-TWO; and
  § 2. Paragraph 1 and subparagraph (B) of  paragraph  2  of  subsection
(a-2)  of  section 606 of the tax law, as amended by section 2 of part Q
of chapter 59 of the laws of 2018, are amended to read as follows:
  (1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first,  two  thousand
[twenty-one]  TWENTY-THREE,  a taxpayer shall be allowed a credit, to be
computed as provided in this subsection, against the tax imposed by this
article, for hiring and employing, for not less than one  year  and  for
not  less  than  thirty-five hours each week, a qualified veteran within
the state.  The taxpayer may claim the credit in the year in  which  the
qualified  veteran  completes one year of employment by the taxpayer. If
the taxpayer claims  the  credit  allowed  under  this  subsection,  the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.
  (B) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand [twenty] TWENTY-TWO; and
  § 3. Paragraph 1 and subparagraph (B) of paragraph  2  of  subdivision
(g-1)  of section 1511 of the tax law, as amended by section 3 of part Q
of chapter 59 of the laws of 2018, are amended to read as follows:
  (1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first,  two  thousand
[twenty-one]  TWENTY-THREE,  a taxpayer shall be allowed a credit, to be
computed as provided in this subdivision, against  the  tax  imposed  by
this  article,  for hiring and employing, for not less than one year and
for not less than thirty-five hours each week, a qualified veteran with-
in the state.  The taxpayer may claim the credit in the  year  in  which
the  qualified veteran completes one year of employment by the taxpayer.
If the taxpayer claims the credit allowed under  this  subdivision,  the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.
  (B) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand [twenty] TWENTY-TWO; and
  § 4. This act shall take effect immediately.

S. 7509                             5                            A. 9509

                                 PART C

  Section  1. Section 2 of chapter 540 of the laws of 1992, amending the
real property tax law relating to oil and gas  charges,  as  amended  by
section  1  of  part  I of chapter 59 of the laws of 2017, is amended to
read as follows:
  § 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law  as  added  by section one of this act shall first be due for values
for assessment rolls with tentative completion dates after July 1, 1992,
and provided further, that this act  shall  remain  in  full  force  and
effect  until  March  31,  [2021] 2024, at which time section 593 of the
real property tax law as added by section  one  of  this  act  shall  be
repealed.
  § 2. This act shall take effect immediately.

                                 PART D

  Section  1.  Subparagraph  (iv)  of  paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 12 of part A of  chap-
ter 59 of the laws of 2014, is amended to read as follows:
  (iv)  for  taxable  years beginning before January first, two thousand
sixteen, if the business income base is not more than two hundred ninety
thousand dollars the amount shall be six and  one-half  percent  of  the
business  income  base;  if  the  business  income base is more than two
hundred ninety thousand dollars but not over three hundred ninety  thou-
sand  dollars the amount shall be the sum of (1) eighteen thousand eight
hundred fifty dollars, (2) seven and one-tenth percent of the excess  of
the  business  income  base over two hundred ninety thousand dollars but
not over three hundred ninety thousand dollars and (3) four and  thirty-
five  hundredths  percent of the excess of the business income base over
three hundred fifty thousand dollars but not over three  hundred  ninety
thousand dollars. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO  THOUSAND TWENTY-ONE THE AMOUNT SHALL BE FOUR PERCENT OF THE TAXPAY-
ER'S BUSINESS INCOME BASE;
  § 2. Paragraph (d) of subdivision 1 of section 210-B of the  tax  law,
as amended by section 31 of part T of chapter 59 of the laws of 2015, is
amended to read as follows:
  (d) Except as otherwise provided in this paragraph, the credit allowed
under this subdivision for any taxable year shall not reduce the tax due
for such year to less than the fixed dollar minimum amount prescribed in
paragraph  (d)  of  subdivision  one  of section two hundred ten of this
article. However, if the amount of credit allowable under this  subdivi-
sion  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  allowed  for a taxable year commencing prior to
January first, nineteen hundred eighty-seven and not deductible in  such
taxable  year may be carried over to the following year or years and may
be deducted from the taxpayer's tax for such year or  years  but  in  no
event  shall  such credit be carried over to taxable years commencing on
or after January first, two thousand  two,  and  any  amount  of  credit
allowed  for  a taxable year commencing on or after January first, nine-
teen hundred eighty-seven and not deductible in such year may be carried
over to the fifteen taxable years next following such taxable  year  and
may be deducted from the taxpayer's tax for such year or years.  In lieu

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of  such  carryover, any such taxpayer which qualifies as a new business
under paragraph (f) of this subdivision OR A TAXPAYER THAT QUALIFIES  AS
AN  ELIGIBLE  FARMER FOR PURPOSES OF PARAGRAPH (B) OF SUBDIVISION ELEVEN
OF  THIS  SECTION  may elect to treat the amount of such carryover as an
overpayment of tax to be credited or refunded  in  accordance  with  the
provisions  of section ten hundred eighty-six of this chapter, provided,
however, the provisions of subsection (c) of section ten hundred  eight-
y-eight of this chapter notwithstanding, no interest shall be paid ther-
eon.
  §  3.  Paragraph 5 of subsection (a) of section 606 of the tax law, as
amended by chapter 170 of the laws  of  1994,  is  amended  to  read  as
follows:
  (5)  If  the  amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year,  the  excess
allowed  for  a taxable year commencing prior to January first, nineteen
hundred eighty-seven may be carried over to the following year or  years
and  may be deducted from the taxpayer's tax for such year or years, but
in no event shall such credit be carried over to taxable years  commenc-
ing  on  or  after January first, nineteen hundred ninety-seven, and any
amount of credit allowed for a taxable year commencing on or after Janu-
ary first, nineteen hundred eighty-seven and not deductible in such year
may be carried over to the ten taxable years next following such taxable
year and may be deducted from the taxpayer's tax for such year or years.
In lieu of carrying over any such excess, a taxpayer who qualifies as an
owner of a new business for purposes of paragraph ten of this subsection
OR A TAXPAYER WHO QUALIFIES AS AN ELIGIBLE FARMER FOR PURPOSES OF  PARA-
GRAPH  TWO OF SUBSECTION (N) OF THIS SECTION may, at his option, receive
such excess as a refund. Any refund  paid  pursuant  to  this  paragraph
shall  be  deemed to be a refund of an overpayment of tax as provided in
section six hundred eighty-six of this article, provided, however,  that
no interest shall be paid thereon.
  §  4. Paragraph 39 of subsection (c) of section 612 of the tax law, as
added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
amended to read as follows:
  (39)  In  the case of a taxpayer who is a small business who has busi-
ness income and/or farm income as defined in  the  laws  of  the  United
States,  an  amount  equal  to three percent of the net items of income,
gain, loss and deduction attributable to such business or farm  entering
into  federal adjusted gross income, but not less than zero, for taxable
years beginning after two thousand thirteen, an amount  equal  to  three
and  three-quarters  percent  of the net items of income, gain, loss and
deduction attributable to such business or farm  entering  into  federal
adjusted  gross income, but not less than zero, for taxable years begin-
ning after two thousand fourteen, [and] an amount equal to five  percent
of  the  net  items  of income, gain, loss and deduction attributable to
such business or farm entering into federal adjusted gross  income,  but
not  less  than  zero,  for  taxable  years beginning after two thousand
fifteen, AND AN AMOUNT EQUAL TO FIFTEEN PERCENT  OF  THE  NET  ITEMS  OF
INCOME,  GAIN,  LOSS AND DEDUCTION ATTRIBUTABLE TO SUCH BUSINESS OR FARM
ENTERING INTO FEDERAL ADJUSTED GROSS INCOME, BUT NOT LESS THAN ZERO, FOR
TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY. For the  purposes  of
this  paragraph, the term small business shall mean a sole proprietor or
a farm business who employs one or more persons during the taxable  year
and  who  has  net  business  income or net farm income of less than two
hundred fifty thousand dollars.

S. 7509                             7                            A. 9509

  § 5. Paragraph 1 of subsection (c) of section 1085 of the tax law,  as
amended  by  section  4 of part KK of chapter 59 of the laws of 2018, is
amended to read as follows:
  (1)  If  any  taxpayer,  EXCEPT A NEW YORK S CORPORATION AS DEFINED IN
SUBDIVISION ONE-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER, fails to
file a declaration of estimated tax under article nine-A of  this  chap-
ter, or fails to pay all or any part of an amount which is applied as an
installment  against such estimated tax, it shall be deemed to have made
an underpayment of estimated tax. There shall be added to  the  tax  for
the  taxable  year an amount at the underpayment rate set by the commis-
sioner pursuant to section one thousand ninety-six of this  article,  or
if  no  rate is set, at the rate of seven and one-half percent per annum
upon the amount of the underpayment for the period of  the  underpayment
but not beyond the fifteenth day of the fourth month following the close
of  the  taxable year. Provided, however, that, for taxable years begin-
ning on or after January first, two thousand seventeen and before  Janu-
ary  first,  two  thousand eighteen, no amount shall be added to the tax
with respect to the portion of such tax related to  the  amount  of  any
interest  deductions  directly  or indirectly attributable to the amount
included in exempt CFC income pursuant to subparagraph (ii) of paragraph
(b) of subdivision six-a of section two hundred eight of this chapter or
the forty percent reduction of such exempt CFC income in lieu of  inter-
est  attribution  if the election described in paragraph (b) of subdivi-
sion six-a of such section is made. The amount of the underpayment shall
be, with respect to any installment of estimated  tax  computed  on  the
basis  of either the preceding year's tax or the second preceding year's
tax, the excess of the amount required to be paid over  the  amount,  if
any, paid on or before the last day prescribed for such payment or, with
respect  to  any  other  installment of estimated tax, the excess of the
amount of the installment which would be required  to  be  paid  if  the
estimated  tax  were equal to ninety-one percent of the tax shown on the
return for the taxable year (or  if  no  return  was  filed,  ninety-one
percent  of  the  tax  for  such  year)  over the amount, if any, of the
installment paid on or before the last day prescribed for such  payment.
In  any case in which there would be no underpayment if "eighty percent"
were substituted for "ninety-one percent" each place it appears in  this
subsection,  the  addition  to  the  tax  shall be equal to seventy-five
percent of the amount otherwise determined.  No  underpayment  shall  be
deemed  to  exist with respect to a declaration or installment otherwise
due on or after the termination of existence of the taxpayer.
  § 6. This act shall take effect  immediately;  provided  however  that
sections  two  and three of this act shall apply to property acquired by
purchase on or after January 1, 2021, and section five of this act shall
apply to taxable years beginning on or after January 1, 2020.

                                 PART E

  Section 1. Paragraph 1 of subsection (aa) of section 606  of  the  tax
law,  as  amended  by  section  1 of part P of chapter 61 of the laws of
2005, is amended to read as follows:
  (1) Residents. [A taxpayer] THERE shall be allowed  a  credit  against
the  tax imposed by this article IN AN AMOUNT equal to twenty percent of
the [premium] PREMIUMS paid during the taxable year for  long-term  care
insurance.  THE CREDIT AMOUNT SHALL NOT EXCEED ONE THOUSAND FIVE HUNDRED
DOLLARS  AND  SHALL  BE  ALLOWED ONLY IF THE AMOUNT OF NEW YORK ADJUSTED
GROSS INCOME REQUIRED TO BE REPORTED ON THE  RETURN  IS  LESS  THAN  TWO

S. 7509                             8                            A. 9509

HUNDRED FIFTY THOUSAND DOLLARS. In order to qualify for such credit, the
taxpayer's premium payment must be for the purchase of or for continuing
coverage under a long-term care insurance policy that qualifies for such
credit  pursuant  to  section  one thousand one hundred seventeen of the
insurance law.  If  the  amount  of  the  credit  allowable  under  this
subsection for any taxable year shall exceed the taxpayer's tax for such
year,  the excess may be carried over to the following year or years and
may be deducted from the taxpayer's tax for such year or years.
  § 2. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2020.

                                 PART F

  Section 1. Paragraph 6 of subsection (d) of section  606  of  the  tax
law,  as  amended  by  section  3 of part V of chapter 60 of the laws of
2004, is amended to read as follows:
  (6) Notification. (A) The commissioner  shall  periodically,  but  not
less than every three years, make efforts to alert taxpayers that may be
currently eligible to receive the credit provided under this subsection,
and  the  credit  provided  under  any  local  law  enacted  pursuant to
subsection (f) of section thirteen hundred ten of this  chapter,  as  to
their  potential  eligibility.  In making the determination of whether a
taxpayer may be eligible for such credit,  the  commissioner  shall  use
such data as may be appropriate and available, including, but not limit-
ed  to,  data  available  from the United States Department of Treasury,
Internal Revenue Service and New  York  state  income  tax  returns  for
preceding tax years.
  (B)  IF  THE  DEPARTMENT  DETERMINES  THAT THE TAXPAYER IS ELIGIBLE TO
RECEIVE THE CREDIT PROVIDED UNDER THIS SUBSECTION BUT  HAS  NOT  CLAIMED
SUCH CREDIT ON HIS OR HER RETURN, THE DEPARTMENT, AT ITS DISCRETION, MAY
COMPUTE  THE TAXPAYER'S LIABILITY AND ALLOW THE CREDIT, AND, IF APPLICA-
BLE, ISSUE ANY REFUND FOR THE ALLOWABLE  CREDIT  AMOUNT  PROVIDED  UNDER
THIS  SUBSECTION. ANY REFUND PAID PURSUANT TO THIS SUBPARAGRAPH SHALL BE
DEEMED TO BE A REFUND OF AN OVERPAYMENT OF TAX AS  PROVIDED  IN  SECTION
SIX  HUNDRED  EIGHTY-SIX  OF  THIS  ARTICLE,  PROVIDED, HOWEVER, THAT NO
INTEREST SHALL BE PAID THEREON.
  § 2. Subsection (f) of section 1310 of  the  tax  law  is  amended  by
adding a new paragraph 6 to read as follows:
  (6)  IF  THE  DEPARTMENT  DETERMINES  THAT THE TAXPAYER IS ELIGIBLE TO
RECEIVE THE CREDIT PROVIDED UNDER THIS SUBSECTION BUT  HAS  NOT  CLAIMED
SUCH CREDIT ON HIS OR HER RETURN, THE DEPARTMENT, AT ITS DISCRETION, MAY
COMPUTE  AND  ISSUE  ANY REFUND FOR THE ALLOWABLE CREDIT AMOUNT PROVIDED
UNDER THIS SUBSECTION. ANY REFUND PAID PURSUANT TO THIS PARAGRAPH  SHALL
BE DEEMED TO BE A REFUND OF AN OVERPAYMENT OF TAX AS PROVIDED IN SECTION
SIX  HUNDRED  EIGHTY-SIX  OF  THIS  CHAPTER,  PROVIDED, HOWEVER, THAT NO
INTEREST SHALL BE PAID THEREON.
  § 3. Section 613 of the tax law, as added by chapter 563 of  the  laws
of 1960, is amended to read as follows:
  §  613.  New  York  deduction of a resident individual.   The New York
deduction of a resident  individual  shall  be  his  New  York  standard
deduction  unless  he  elects  to deduct his New York itemized deduction
under the conditions set forth in section six hundred  fifteen  OF  THIS
ARTICLE.  IF  AN  INDIVIDUAL TAXPAYER HAS ELECTED TO DEDUCT HIS NEW YORK
ITEMIZED DEDUCTION COMPUTED PURSUANT TO SECTION SIX HUNDRED  FIFTEEN  OF
THIS  ARTICLE,  BUT THE DEPARTMENT DETERMINES THAT THE NEW YORK STANDARD
DEDUCTION ALLOWABLE PURSUANT TO SECTION SIX  HUNDRED  FOURTEEN  OF  THIS

S. 7509                             9                            A. 9509

ARTICLE  IS  GREATER,  THE  DEPARTMENT  MAY RECOMPUTE THE TAXPAYER'S TAX
LIABILITY PURSUANT TO SECTION SIX HUNDRED ELEVEN OF THIS  ARTICLE  USING
THE NEW YORK STANDARD DEDUCTION PROVIDED IN SECTION SIX HUNDRED FOURTEEN
OF  THIS ARTICLE. THE DEPARTMENT WILL NOTIFY THE TAXPAYER OF ANY ADJUST-
MENT TO THE ELECTION.
  § 4. Subdivision (d) of section 11-1706 of the administrative code  of
the  city  of New York is amended by adding a new paragraph 5 to read as
follows:
  (5) IF THE STATE COMMISSIONER OF TAXATION AND FINANCE DETERMINES  THAT
THE  TAXPAYER  IS  ELIGIBLE  TO  RECEIVE  THE CREDIT PROVIDED UNDER THIS
SUBDIVISION BUT HAS NOT CLAIMED SUCH CREDIT ON HIS OR  HER  RETURN,  THE
STATE  COMMISSIONER  OF  TAXATION AND FINANCE, AT HIS OR HER DISCRETION,
MAY COMPUTE AND  ISSUE  ANY  REFUND  FOR  THE  ALLOWABLE  CREDIT  AMOUNT
PROVIDED  UNDER THIS SUBDIVISION. ANY REFUND PAID PURSUANT TO THIS PARA-
GRAPH SHALL BE DEEMED TO BE  A  REFUND  OF  AN  OVERPAYMENT  OF  TAX  AS
PROVIDED  IN  SECTION  11-1786 OF THIS TITLE, PROVIDED, HOWEVER, THAT NO
INTEREST SHALL BE PAID THEREON.
  § 5. This act shall take effect immediately.

                                 PART G

  Section 1. Paragraph 1 of subsection (c-1) of section 606 of  the  tax
law,  as  amended  by  section  1 of part P of chapter 59 of the laws of
2018, is amended to read as follows:
  (1) A resident taxpayer shall be allowed a credit as  provided  herein
equal to the greater of one hundred dollars times the number of qualify-
ing  children  of the taxpayer or the applicable percentage of the child
tax credit allowed the taxpayer under section twenty-four of the  inter-
nal  revenue  code  for the same taxable year for each qualifying child.
Provided, however, in the case of  a  taxpayer  whose  federal  adjusted
gross  income  exceeds  the  applicable  threshold  amount  set forth by
section 24(b)(2) of the Internal Revenue Code, the credit shall only  be
equal  to  the applicable percentage of the child tax credit allowed the
taxpayer under section 24 of the Internal Revenue Code for each qualify-
ing child. For the purposes of this subsection, a qualifying child shall
be a child who meets the definition of  qualified  child  under  section
24(c)  of  the  internal revenue code and is at least four years of age.
PROVIDED, HOWEVER, IN THE CASE OF A RESIDENT TAXPAYER WITH  A  NEW  YORK
STATE  ADJUSTED GROSS INCOME OF FIFTY THOUSAND DOLLARS OR LESS, A QUALI-
FYING CHILD SHALL BE A CHILD WHO MEETS THE DEFINITION  OF  A  QUALIFYING
CHILD  UNDER  SECTION 24(C) OF THE INTERNAL REVENUE CODE. The applicable
percentage  shall  be  thirty-three  percent.  For  purposes   of   this
subsection,  any  reference  to  section 24 of the Internal Revenue Code
shall be a reference to such section as it existed immediately prior  to
the enactment of Public Law 115-97.
  § 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2021.

                                 PART H

  Section  1.  Subdivision  6 of section 470 of the tax law, as added by
chapter 61 of the laws of 1989, is amended to read as follows:
  6. "Wholesale price." The [established] price for which a manufacturer
OR OTHER PERSON sells tobacco products to a distributor,  INCLUDING  THE
FEDERAL  EXCISE  TAXES  PAID BY THE MANUFACTURER OR OTHER PERSON, before

S. 7509                            10                            A. 9509

the  allowance  of  any  discount,  trade  allowance,  rebate  or  other
reduction.
  [In  the  absence  of such an established price, a manufacturer's] THE
invoice [price of any] RECEIVED BY A DISTRIBUTOR  WITH  RESPECT  TO  ITS
PURCHASE  OF  A  tobacco  product  shall  be presumptive evidence of the
wholesale price of such tobacco product[, and in its absence  the  price
at  which  such  tobacco products were purchased shall be presumed to be
the wholesale price, unless evidence of a lower wholesale price shall be
established or any industry standard of markups relating to the purchase
price in relation to the wholesale price shall be established].
  § 2. Subdivision 3 of section 481 of the tax law, as amended by  chap-
ter 190 of the laws of 1990, is amended to read as follows:
  3.  (A)  For  purposes of this chapter, the certificate of the commis-
sioner of taxation and finance to the effect that a tax or  fee  imposed
by  this  article  has not been paid, that a return required by or under
the provisions of this article has not been filed, or  that  information
has  not  been  supplied, as required by or under the provisions of this
article, or that a bond or other security required by or pursuant to the
provisions of this article has not been filed, or that books,  accounts,
records,  memoranda,  documents  or  papers  have  not  been supplied as
required by or pursuant to the authority of  this  article,  or  that  a
retail  dealer  or vending machine owner or operator is not currently or
validly registered as required by this  article  shall  be  prima  facie
evidence  that such tax or fee has not been paid, such return not filed,
such information not supplied, such bond or other  security  not  filed,
that  such books, accounts, records, memoranda, documents or papers have
not been supplied, or that such retail dealer or vending  machine  owner
or operator is not currently or validly registered.
  (B) ANY PERSON REQUIRED TO MAKE OR MAINTAIN RECORDS UNDER THIS ARTICLE
WHO FAILS TO MAINTAIN OR MAKE AVAILABLE SUCH RECORDS MAY BE SUBJECT TO A
PENALTY  NOT  TO  EXCEED ONE THOUSAND DOLLARS FOR EACH MONTHLY REPORTING
PERIOD OR PART THEREOF FOR WHICH RECORDS ARE NOT MAINTAINED OR  PROVIDED
BY  SUCH  PERSON.  THIS  PENALTY  IS  IN  ADDITION  TO ANY OTHER PENALTY
PROVIDED FOR IN THIS ARTICLE, BUT WILL NOT BE IMPOSED AND COLLECTED MORE
THAN ONCE FOR SUCH FAILURES FOR THE SAME REPORTING PERIOD OR PART THERE-
OF. IF THE COMMISSIONER DETERMINES THAT ANY FAILURE  DESCRIBED  IN  THIS
SUBDIVISION  FOR A GIVEN REPORTING PERIOD WAS ENTIRELY DUE TO REASONABLE
CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMISSIONER MAY WAIVE THE PENALTY
IMPOSED FOR THAT PERIOD. THE PENALTIES IMPOSED BY THIS SUBDIVISION  WILL
BE  PAID  AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM THIS
ARTICLE.  THESE PENALTIES WILL BE DETERMINED, ASSESSED, COLLECTED,  PAID
AND  ENFORCED IN THE SAME MANNER AS THE TAX IMPOSED BY THIS ARTICLE, AND
ALL THE PROVISIONS OF THIS ARTICLE RELATING TO TAX WILL BE  DEEMED  ALSO
TO APPLY TO THE PENALTIES IMPOSED BY THIS SUBDIVISION.
  §  3. This act shall take effect on October 1, 2020; provided however,
that section one of  this  act  shall  apply  to  all  tobacco  products
possessed in this state for sale on or after such date.

                                 PART I

  Section 1. Section 17 of the alcoholic beverage control law is amended
by adding a new subdivision 3-a to read as follows:
  3-A. TO SUSPEND OR CANCEL ANY LICENSE PURSUANT TO AND CORRESPONDING IN
DURATION  WITH  AN  ACTION  OF  THE COMMISSIONER OF TAXATION AND FINANCE
UNDER SUBDIVISION FOUR OF SECTION FOUR HUNDRED EIGHTY-A OF THE TAX  LAW.
A  SUSPENSION  OR CANCELLATION UNDER THIS SUBDIVISION SHALL BE INITIATED

S. 7509                            11                            A. 9509

UPON RECEIPT BY THE AUTHORITY OF NOTICE FROM THE COMMISSIONER  OF  TAXA-
TION  AND  FINANCE OF SUCH ACTION UNDER SUBDIVISION FOUR OF SECTION FOUR
HUNDRED EIGHTY-A OF THE TAX LAW AND SHALL BE EFFECTIVE UPON  SERVICE  OF
AN  ORDER BY THE AUTHORITY SERVED AT THE LICENSED PREMISES. SUCH SUSPEN-
SION OR CANCELLATION ISSUED BY THE AUTHORITY SHALL BE APPEALABLE ONLY AS
PROVIDED FOR IN PARAGRAPH  (B)  OF  SUBDIVISION  FOUR  OF  SECTION  FOUR
HUNDRED  EIGHTY-A OF THE TAX LAW. THE POWER TO ISSUE SUCH SUSPENSIONS OR
CANCELLATIONS MAY BE DELEGATED TO THE CHAIRMAN, OR TO SUCH  OTHER  OFFI-
CERS OR EMPLOYEES AS MAY BE DESIGNATED BY THE CHAIRMAN.
  §  2. Subdivision 9 of section 470 of the tax law, as amended by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  9. "Retail dealer." Any person other than a wholesale  dealer  engaged
in selling cigarettes or tobacco products.  FOR PURPOSES OF SECTION FOUR
HUNDRED  EIGHTY-A OF THIS ARTICLE AND SECTION ELEVEN HUNDRED THIRTY-FOUR
OF THIS CHAPTER, SUCH TERM SHALL INCLUDE FOR EACH SUCH PERSON ENGAGED IN
SELLING CIGARETTES OR TOBACCO PRODUCTS ALL "PERSONS REQUIRED TO  COLLECT
TAX," AS DEFINED IN SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE
OF THIS CHAPTER.
  § 3. Section 470 of the tax law is amended by adding a new subdivision
21 to read as follows:
  21.  "AFFILIATED  PERSON." PERSONS ARE AFFILIATED PERSONS WITH RESPECT
TO EACH OTHER WHERE ONE OF SUCH PERSONS HAS  AN  OWNERSHIP  INTEREST  OF
MORE  THAN  FIVE  PERCENT,  WHETHER DIRECT OR INDIRECT, IN THE OTHER, OR
WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR
INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER  PERSON,  OR  BY  A
GROUP  OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO EACH
OTHER.
  § 4. Subdivision 4 of section 480-a of the tax law, as added by  chap-
ter  629 of the laws of 1996, paragraph (d) as amended by chapter 262 of
the laws of 2000, is amended to read as follows:
  4. (a) If a retail dealer possesses or sells unstamped  or  unlawfully
stamped  packages  of cigarettes, or if a retail dealer is also licensed
as an  agent  pursuant  to  section  four  hundred  seventy-two  and  it
possesses  unlawfully  stamped packages of cigarettes or sells unstamped
or unlawfully stamped packages of cigarettes at retail, (i)  its  regis-
tration  shall be [suspended] REVOKED for a period of [not more than six
months] ONE YEAR, or (ii) for a second such possession or sale within  a
period  of five years[, its] BY A RETAIL DEALER OR ANY AFFILIATED PERSON
OF SUCH RETAIL DEALER, THE registration OF SUCH RETAIL  DEALER  AND  THE
REGISTRATION  OF  ANY RETAIL DEALER THAT IS AN AFFILIATED PERSON OF SUCH
RETAIL DEALER shall be [suspended] REVOKED for a period of [up to  thir-
ty-six months] THREE YEARS, or (iii) for a third such possession or sale
within  a  period  of five years[, its] BY A RETAIL DEALER OR ANY AFFIL-
IATED PERSON OF SUCH RETAIL  DEALER,  THE  registration  [may]  OF  SUCH
RETAIL  DEALER  AND  THE  REGISTRATION  OF  ANY RETAIL DEALER THAT IS AN
AFFILIATED PERSON OF SUCH RETAIL DEALER SHALL be revoked for a period of
[up to] five years. A retail dealer registration shall be [suspended or]
revoked pursuant to this  subdivision  immediately  upon  such  dealer's
receipt of written notice of [suspension or] revocation from the commis-
sioner. [If a retail dealer sells cigarettes through more than one place
of  business  in this state, the retail dealer registration shall not be
suspended or revoked pursuant to this subdivision, but  the  certificate
of  registration  issued to the place of business, cart, stand, truck or
other merchandising device where unstamped or unlawfully  stamped  ciga-
rettes were found shall be suspended or cancelled for possession or sale
of  unstamped  or  unlawfully stamped packages of cigarettes, as if such

S. 7509                            12                            A. 9509

certificate of registration were a retail dealer registration. A suspen-
sion or cancellation of a certificate of registration shall  be  treated
as  if  it  were  a  suspension  or  revocation  of  a registration.] If
unstamped  or  unlawfully stamped cigarettes are found in a retail deal-
er's warehouse OR A WAREHOUSE OF ANY AFFILIATED PERSON  OF  SUCH  RETAIL
DEALER,  the [suspension or] revocation of the retail dealer's registra-
tion pursuant to this subdivision shall be  applicable  to  each  retail
place of business in this state through which such retail dealer AND ANY
AFFILIATED PERSON OF SUCH RETAIL DEALER sells cigarettes.
  (b) A retail dealer who is notified of a [suspension or] revocation of
its  registration  pursuant  to this subdivision shall have the right to
have the [suspension or] revocation reviewed by the commissioner or  his
OR HER designee by contacting the department at a telephone number or an
address  to  be  disclosed  in  the notice of [suspension or] revocation
within ten days of such  dealer's  receipt  of  such  notification.  The
retail dealer may present written evidence or argument in support of its
defense  to the [suspension or] revocation, or may appear at a scheduled
conference with the commissioner or his OR HER designee to present  oral
arguments  and written and oral evidence in support of such defense. The
commissioner or his OR HER designee is authorized to delay the effective
date of the [suspension or] revocation to enable the  retail  dealer  to
present further evidence or arguments in connection with the [suspension
or] revocation. The commissioner or his OR HER designee shall cancel the
[suspension or] revocation of registration if the commissioner or his OR
HER  designee  is  not satisfied by a preponderance of the evidence that
the retail dealer possessed or  sold  unstamped  or  unlawfully  stamped
packages of cigarettes.
  (c)  An  order of [suspension or] revocation of a retail dealer regis-
tration shall not be reviewable by the division of tax appeals, but  may
be  reviewed pursuant to article seventy-eight of the civil practice law
and rules by a proceeding commenced in the  supreme  court  within  four
months  of  the  [suspension  or] revocation of registration petitioning
that the order of [suspension or] revocation be enjoined or  set  aside.
Such proceeding shall be instituted in the county where the commissioner
has  his  OR  HER principal office. Upon the filing of such petition the
court shall have jurisdiction to set aside such order of [suspension or]
revocation, in whole or in part, or to dismiss the petition. The  juris-
diction of the supreme court shall be exclusive and its order dismissing
the  petition  or  enjoining or setting aside such order, in whole or in
part, shall be final, subject to review by the appellate division of the
supreme court and the court of appeals in the same manner and  form  and
with the same effect as provided by law for appeals from a judgment in a
special  proceeding.  All such proceedings shall be heard and determined
by the court and by any appellate court as expeditiously as possible and
with lawful precedence over other civil matters.  All  such  proceedings
for  review shall be heard on the petition, transcript and other papers,
and on appeal shall be heard  on  the  record,  without  requirement  of
printing.
  (d)  After review of the [suspension or] revocation of registration by
the commissioner or his OR HER designee is complete, or the time  within
which a retail dealer may request such review has expired without such a
request  having been made, notice of the [suspension or] revocation of a
retail dealer registration pursuant to this subdivision shall  be  given
by  the  commissioner to the head of the division of the lottery for the
purpose of enforcement of section sixteen hundred seven of this  chapter
[and such division may suspend or revoke any license issued with respect

S. 7509                            13                            A. 9509

to  a  lottery agent's specific location pursuant to article thirty-four
of this chapter if such lottery agent is a retail dealer  of  cigarettes
whose registration for such location is suspended or revoked pursuant to
this  section].  In  addition, notice of such [suspension or] revocation
shall also be given to the  [division  of  alcoholic  beverage  control]
STATE LIQUOR AUTHORITY and such [suspension or] revocation shall consti-
tute  cause[,  for purposes of section one hundred eighteen of the alco-
holic beverage control law,] for revocation, cancellation or  suspension
of  any license or permit issued pursuant to [such] THE ALCOHOLIC BEVER-
AGE CONTROL law TO THE RETAIL DEALER OF CIGARETTES WHOSE REGISTRATION IS
REVOKED PURSUANT TO THIS SECTION.
  § 5. Subparagraph (A) of paragraph 4 of  subdivision  (a)  of  section
1134  of the tax law, as amended by section 21-a of part U of chapter 61
of the laws of 2011, is amended to read as follows:
  (A) Where a person who holds a certificate of authority (i)  willfully
fails to file a report or return required by this article, (ii) willful-
ly  files,  causes  to  be  filed, gives or causes to be given a report,
return, certificate or affidavit required under this  article  which  is
false,  (iii) willfully fails to comply with the provisions of paragraph
two or three of subdivision (e) of section eleven  hundred  thirty-seven
of  this  article,  (iv)  willfully fails to prepay, collect, truthfully
account for or pay over any tax imposed under this article  or  pursuant
to  the  authority  of article twenty-nine of this chapter, (v) fails to
obtain a bond pursuant to paragraph two of subdivision  (e)  of  section
eleven  hundred  thirty-seven  of  this  part, or fails to comply with a
notice issued by the commissioner pursuant to paragraph  three  of  such
subdivision,  [or]  (vi)  has  been convicted of a crime provided for in
this chapter, OR (VII) WHERE SUCH PERSON, OR ANY PERSON AFFILIATED  WITH
SUCH PERSON AS SUCH TERM IS DEFINED IN SUBDIVISION TWENTY-ONE OF SECTION
FOUR  HUNDRED SEVENTY OF THIS CHAPTER, HAS HAD A RETAIL DEALER REGISTRA-
TION ISSUED PURSUANT TO SECTION FOUR HUNDRED EIGHTY-A  OF  THIS  CHAPTER
REVOKED  PURSUANT  TO  PARAGRAPH (A) OF SUBDIVISION FOUR OF SUCH SECTION
FOUR HUNDRED EIGHTY-A, the  commissioner  may  revoke  or  suspend  such
certificate  of authority and all duplicates thereof. Provided, however,
that the commissioner may revoke or suspend a certificate  of  authority
based  on the grounds set forth in clause (vi) of this subparagraph only
where the conviction referred to occurred not more than one  year  prior
to the date of revocation or suspension; AND PROVIDED FURTHER THAT WHERE
THE COMMISSIONER REVOKES OR SUSPENDS A CERTIFICATE OF AUTHORITY BASED ON
THE GROUNDS SET FORTH IN CLAUSE (VII) OF THIS SUBPARAGRAPH, SUCH SUSPEN-
SION  OR  REVOCATION SHALL CONTINUE FOR AS LONG AS THE REVOCATION OF THE
RETAIL DEALER REGISTRATION PURSUANT TO SECTION FOUR HUNDRED EIGHTY-A  OF
THIS CHAPTER REMAINS IN EFFECT.
  §  6.  Subparagraph  (A)  of paragraph 4 of subdivision (a) of section
1134 of the tax law, as amended by chapter 2 of the  laws  of  1995,  is
amended to read as follows:
  (A)  Where a person who holds a certificate of authority (i) willfully
fails to file a report or return required by this article, (ii) willful-
ly files, causes to be filed, gives or causes  to  be  given  a  report,
return,  certificate  or  affidavit required under this article which is
false, (iii) willfully fails to comply with the provisions of  paragraph
two  or  three of subdivision (e) of section eleven hundred thirty-seven
of this article, (iv) willfully fails  to  prepay,  collect,  truthfully
account  for  or pay over any tax imposed under this article or pursuant
to the authority of article twenty-nine of this chapter,  [or]  (v)  has
been  convicted  of  a crime provided for in this chapter, OR (VI) WHERE

S. 7509                            14                            A. 9509

SUCH PERSON, OR ANY PERSON AFFILIATED WITH SUCH PERSON AS SUCH  TERM  IS
DEFINED  IN  SUBDIVISION  TWENTY-ONE  OF SECTION FOUR HUNDRED SEVENTY OF
THIS CHAPTER, HAS HAD A RETAIL DEALER REGISTRATION  ISSUED  PURSUANT  TO
SECTION  FOUR  HUNDRED  EIGHTY-A  OF  THIS  CHAPTER SUSPENDED OR REVOKED
PURSUANT TO PARAGRAPH (A) OF  SUBDIVISION  FOUR  OF  SUCH  SECTION  FOUR
HUNDRED  EIGHTY-A,  the  commissioner may revoke or suspend such certif-
icate of authority and all duplicates thereof. Provided,  however,  that
the  commissioner may revoke or suspend a certificate of authority based
on the grounds set forth in clause (v) of this subparagraph  only  where
the  conviction referred to occurred not more than one year prior to the
date of revocation or suspension; AND PROVIDED FURTHER  THAT  WHERE  THE
COMMISSIONER REVOKES OR SUSPENDS A CERTIFICATE OF AUTHORITY BASED ON THE
GROUNDS  SET  FORTH IN CLAUSE (VI) OF THIS SUBPARAGRAPH, SUCH SUSPENSION
OR REVOCATION SHALL CONTINUE FOR AS LONG AS THE REVOCATION OF THE RETAIL
DEALER REGISTRATION PURSUANT TO SECTION FOUR HUNDRED  EIGHTY-A  OF  THIS
CHAPTER REMAINS IN EFFECT.
  §  7.  Subparagraph  (B)  of paragraph 4 of subdivision (a) of section
1134 of the tax law, as amended by chapter 2 of the  laws  of  1995,  is
amended to read as follows:
  (B)  Where  a person files a certificate of registration for a certif-
icate of authority under this subdivision and in considering such appli-
cation the commissioner ascertains that (i) any tax imposed  under  this
chapter  or  any related statute, as defined in section eighteen hundred
of this chapter, has been finally determined to be due from such  person
and  has not been paid in full, (ii) a tax due under this article or any
law, ordinance or resolution enacted pursuant to the authority of  arti-
cle  twenty-nine  of  this chapter has been finally determined to be due
from an officer, director, partner or  employee  of  such  person,  and,
where  such  person  is  a  limited  liability company, also a member or
manager  of  such  person,  in  the  officer's,  director's,  partner's,
member's,  manager's  or  employee's  capacity  as  a person required to
collect tax on behalf of such person or another person and has not  been
paid,  (iii)  such  person has been convicted of a crime provided for in
this chapter within one year from the date on which such certificate  of
registration is filed, (iv) an officer, director, partner or employee of
such person, and, where such person is a limited liability company, also
a  member  or  manager of such person, which officer, director, partner,
member, manager or employee is a  person  required  to  collect  tax  on
behalf  of  such  person filing a certificate of registration has in the
officer's, director's,  partner's,  member's,  manager's  or  employee's
capacity as a person required to collect tax on behalf of such person or
of another person been convicted of a crime provided for in this chapter
within  one year from the date on which such certificate of registration
is filed, (v) a shareholder owning more than fifty percent of the number
of shares of stock of such person (where such person is  a  corporation)
entitling  the  holder  thereof to vote for the election of directors or
trustees, who owned more than fifty percent of the number of such shares
of another person (where such other person is a corporation) at the time
any tax imposed under this chapter or any related statute as defined  in
section  eighteen  hundred  of this chapter was finally determined to be
due and where such tax has not been paid in full, or at  the  time  such
other person was convicted of a crime provided for in this chapter with-
in  one  year from the date on which such certificate of registration is
filed, [or] (vi) a certificate of authority issued to  such  person  has
been revoked or suspended pursuant to subparagraph (A) of this paragraph
within  one year from the date on which such certificate of registration

S. 7509                            15                            A. 9509

is filed, OR (VII) A  RETAIL  DEALER  REGISTRATION  ISSUED  PURSUANT  TO
SECTION  FOUR HUNDRED EIGHTY-A OF THIS CHAPTER TO SUCH PERSON, OR TO ANY
PERSON AFFILIATED WITH SUCH PERSON AS SUCH TERM IS DEFINED  IN  SUBDIVI-
SION  TWENTY-ONE  OF  SECTION  FOUR HUNDRED SEVENTY OF THIS CHAPTER, HAS
BEEN REVOKED PURSUANT TO PARAGRAPH  (A)  OF  SUBDIVISION  FOUR  OF  SUCH
SECTION  FOUR HUNDRED EIGHTY-A, WHERE SUCH REVOCATION REMAINS IN EFFECT,
the commissioner may refuse to issue a certificate of authority.
  § 8. Section 1607 of the tax law is amended by adding a  new  subdivi-
sion i to read as follows:
  I.  A LOTTERY SALES AGENT'S LICENSE SHALL BE SUSPENDED OR REVOKED UPON
NOTIFICATION TO THE DIVISION BY THE COMMISSIONER OF  THE  REVOCATION  OF
SUCH  AGENT'S RETAIL DEALER REGISTRATION PURSUANT TO SUBDIVISION FOUR OF
SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER.  SUCH SUSPENSION OR REVO-
CATION SHALL CONTINUE FOR AS LONG AS THE REVOCATION OF SUCH RETAIL DEAL-
ER REGISTRATION REMAINS IN EFFECT.  NOTWITHSTANDING ANY OTHER LAW TO THE
CONTRARY, LOTTERY SALES AGENTS SHALL HAVE NO  RIGHT  TO  A  HEARING  AND
SHALL  HAVE  NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR TO ANY
OTHER LEGAL RECOURSE AGAINST THE DIVISION WITH  RESPECT  TO  ANY  ACTION
TAKEN  PURSUANT  TO THIS SUBDIVISION.  NOTHING IN THIS SUBDIVISION SHALL
AFFECT THE RIGHT TO REVIEW THE REVOCATION OF A RETAIL  DEALER  REGISTRA-
TION,  OR ANY APPEAL THEREFROM, AS PROVIDED IN PARAGRAPHS (B) AND (C) OF
SUBDIVISION FOUR OF SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER.
  § 9. This act shall take effect September 1, 2020 and shall  apply  to
the  possession  or  sale  of  unstamped or illegally stamped cigarettes
occurring on and after such date; provided, however, that the amendments
to section 17 of the alcoholic beverage control law made by section  one
of  this  act shall survive the expiration and reversion of such section
as provided in section 4 of chapter 118 of the laws of 2012, as amended;
provided, further, that the amendments to subparagraph (A) of  paragraph
4 of subdivision (a) of section 1134 of the tax law made by section five
of  this  act  shall  not affect the expiration of such subparagraph and
shall expire therewith, when upon such date the  provisions  of  section
six of this act shall take effect.

                                 PART J

  Section  1.  Paragraph  (e) of subdivision 1 of section 424 of the tax
law, as amended by chapter 190 of the laws of 1990, is amended  to  read
as follows:
  (e)  Sixty-seven cents per liter upon liquors containing not more than
twenty-four per centum of alcohol by volume  except  liquors  containing
not  more  than  two per centum of alcohol by volume, upon which the tax
shall be [one cent per liter] ZERO; and
  § 2. Paragraph (g) of subdivision 1 of section 424 of the tax law,  as
amended  by chapter 433 of the laws of 1978 and the opening paragraph as
amended by chapter 508 of the laws  of  1993,  is  amended  to  read  as
follows:
  (g)  For  purposes  of  this  chapter, it is presumed that liquors are
possessed for the purpose of sale in  this  state  if  the  quantity  of
liquors  possessed in this state, imported or caused to be imported into
this state or produced, distilled, manufactured,  compounded,  mixed  or
fermented  in  this state exceeds ninety liters. Such presumption may be
rebutted by the introduction of substantial evidence to the contrary. In
any case where the quantity of alcoholic beverages taxable  pursuant  to
this  article  is  a  fractional part of one liter (or one gallon in the
case of beers) or an amount greater than a whole multiple of liters  (or

S. 7509                            16                            A. 9509

gallons  in  the case of beers), the amount of tax levied and imposed on
such fractional part of one liter (or one gallon in the case of  beers),
or  fractional part of a liter (or gallon) in excess of a whole multiple
of  liters  or gallons shall be such fractional part of the rate imposed
by paragraphs (a) through (f).
  Notwithstanding any other provision of this article, the [tax  commis-
sion]  COMMISSIONER may permit the purchase of [liquors and wines] ALCO-
HOLIC BEVERAGES without tax by a  PERSON  REGISTERED  AS  A  DISTRIBUTOR
UNDER  SECTION  FOUR  HUNDRED  TWENTY-ONE  OF  THIS ARTICLE [holder of a
distiller's license or a winery license,  issued  by  the  state  liquor
authority]  from  another  PERSON SO REGISTERED [holder of a distiller's
license or a winery license, issued by such authority], in  which  event
the [liquors and wines] ALCOHOLIC BEVERAGE so purchased shall be subject
to  the  taxes  imposed by this article in the hands of the purchaser in
the same manner and to the same extent as if such purchaser had imported
or caused the same to be imported  into  this  state  or  had  produced,
distilled, manufactured, brewed, compounded, mixed or fermented the same
within this state.
  §  3.  Subparagraph  (C)  of paragraph 1 of subdivision (i) of section
1136 of the tax law, as separately amended by chapters 229  and  485  of
the  laws  of  2015,  is amended, and a new subparagraph (D) is added to
read as follows:
  (C) Every wholesaler, as defined by section  three  of  the  alcoholic
beverage control law, if it has made a sale of an alcoholic beverage, as
defined by section four hundred twenty of this chapter, without collect-
ing sales or use tax during the period covered by the return, except (i)
a sale to a person that has furnished an exempt organization certificate
to  the  wholesaler  for that sale; or (ii) a sale to another wholesaler
whose license under the alcoholic beverage control law does not allow it
to make retail sales of the alcoholic beverage. For each vendor,  opera-
tor,  or  recipient  to  whom  the  wholesaler  has  made a sale without
collecting sales or compensating use tax, the return  must  include  the
total  value of those sales made during the period covered by the return
(excepting the sales described in clauses (i) and (ii) of this  subpara-
graph) and the vendor's, operator's or recipient's state liquor authori-
ty  license number, along with the information required by paragraph two
of this subdivision. [A person  operating  pursuant  to  a  farm  winery
license  as  provided in section seventy-six-a of the alcoholic beverage
control law, or a person operating  pursuant  to  a  winery  license  as
provided  in  section  seventy-six of the alcoholic beverage control law
and whose winery manufactures  less  than  one  hundred  fifty  thousand
finished  gallons  of wine annually, or a person operating pursuant to a
farm distillery license as provided  in  subdivision  two-c  of  section
sixty-one  of  such law, or a person operating pursuant to a farm cidery
license as provided in section fifty-eight-c of the  alcoholic  beverage
control law, or a person operating pursuant to a farm brewery license as
provided  in  section fifty-one-a of the alcoholic beverage control law,
or a person operating pursuant to a  brewer's  license  as  provided  in
section  fifty-one  of  the  alcoholic beverage control law who produces
less than sixty thousand barrels of beer a year, or a  person  operating
pursuant  to  any  combination of such licenses, shall not be subject to
any of the requirements of this subdivision.]
  (D) NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (C) OF  THIS  PARA-
GRAPH,  A  PERSON  OPERATING  PURSUANT  TO ANY OF THE FOLLOWING LICENSES
SHALL NOT BE SUBJECT TO ANY OF THE REQUIREMENTS OF THIS SUBDIVISION: (I)
A FARM WINERY LICENSE, AS PROVIDED IN SECTION SEVENTY-SIX-A OF THE ALCO-

S. 7509                            17                            A. 9509

HOLIC BEVERAGE CONTROL LAW;  (II)  A  WINERY  LICENSE,  AS  PROVIDED  IN
SECTION  SEVENTY-SIX  OF  THE  ALCOHOLIC BEVERAGE CONTROL LAW, WHERE THE
NUMBER OF GALLONS OF WINE, CIDER AND  MEAD  PRODUCED  ANNUALLY  BY  SUCH
PERSON  DOES  NOT  EXCEED  THE  ANNUAL  LIMITS ON THE NUMBER OF FINISHED
GALLONS OF WINE, CIDER AND MEAD PERMITTED  TO  BE  PRODUCED  BY  A  FARM
WINERY UNDER SUBDIVISION EIGHT OF SECTION SEVENTY-SIX-A OF THE ALCOHOLIC
BEVERAGE  CONTROL  LAW;  (III) A FARM DISTILLERY LICENSE, AS PROVIDED IN
SUBDIVISION TWO-C OF SECTION SIXTY-ONE OF THE ALCOHOLIC BEVERAGE CONTROL
LAW; (IV) A DISTILLER'S LICENSE, AS PROVIDED IN SECTION SIXTY-ONE OF THE
ALCOHOLIC BEVERAGE CONTROL LAW, WHERE THE NUMBER OF  GALLONS  OF  LIQUOR
PRODUCED  ANNUALLY  BY  SUCH PERSON DOES NOT EXCEED THE ANNUAL LIMITS ON
THE NUMBER OF GALLONS OF LIQUOR PERMITTED  TO  BE  PRODUCED  BY  A  FARM
DISTILLERY UNDER PARAGRAPH (F) OF SUBDIVISION TWO-C OF SECTION SIXTY-ONE
OF  THE  ALCOHOLIC  BEVERAGE  CONTROL LAW; (V) A FARM CIDERY LICENSE, AS
PROVIDED IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVERAGE CONTROL LAW;
(VI) A CIDER PRODUCERS' LICENSE, AS PROVIDED IN SECTION  FIFTY-EIGHT  OF
THE ALCOHOLIC BEVERAGE CONTROL LAW, WHERE THE NUMBER OF GALLONS OF CIDER
PRODUCED  ANNUALLY  BY  SUCH PERSON DOES NOT EXCEED THE ANNUAL LIMITS ON
THE NUMBER OF GALLONS OF CIDER PERMITTED TO BE PRODUCED BY A FARM CIDERY
UNDER SUBDIVISION TEN OF SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVERAGE
CONTROL LAW; (VII) A  FARM  BREWERY  LICENSE,  AS  PROVIDED  IN  SECTION
FIFTY-ONE-A  OF  THE  ALCOHOLIC  BEVERAGE CONTROL LAW; (VIII) A BREWER'S
LICENSE, AS PROVIDED IN SECTION  FIFTY-ONE  OF  THE  ALCOHOLIC  BEVERAGE
CONTROL  LAW,  WHERE  THE  NUMBER OF FINISHED BARRELS OF BEER, CIDER AND
BRAGGOT PRODUCED ANNUALLY BY SUCH PERSON DOES EXCEED THE  ANNUAL  NUMBER
OF  FINISHED BARRELS OF BEER, CIDER AND BRAGGOT PERMITTED TO BE PRODUCED
BY A FARM BREWERY UNDER SUBDIVISION TEN OF SECTION  FIFTY-ONE-A  OF  THE
ALCOHOLIC BEVERAGE CONTROL LAW; (IX) A FARM MEADERY LICENSE, AS PROVIDED
IN  SECTION  THIRTY-ONE  OF THE ALCOHOLIC BEVERAGE CONTROL LAW; OR (X) A
MEAD PRODUCERS' LICENSE, AS PROVIDED IN SECTION THIRTY OF THE  ALCOHOLIC
BEVERAGE  CONTROL  LAW,  WHERE THE NUMBER OF GALLONS OF MEAD AND BRAGGOT
PRODUCED ANNUALLY BY SUCH  PERSON  DOES  EXCEED  THE  ANNUAL  NUMBER  OF
FINISHED  BARRELS OF MEAD AND BRAGGOT PERMITTED TO BE PRODUCED BY A FARM
MEADERY UNDER SUBDIVISION TEN OF SECTION  THIRTY-ONE  OF  THE  ALCOHOLIC
BEVERAGE CONTROL LAW. NOTHING IN THIS SUBPARAGRAPH SHALL EXEMPT A PERSON
OPERATING  PURSUANT  TO  MULTIPLE  LICENSES UNDER THE ALCOHOLIC BEVERAGE
CONTROL LAW FROM THE REQUIREMENTS OF SUBPARAGRAPH (C) OF THIS  PARAGRAPH
IF SUCH PERSON PRODUCES AN AMOUNT OF ANY ALCOHOLIC BEVERAGE IN EXCESS OF
THE AMOUNTS PERMITTED TO BE PRODUCED ANNUALLY BY A PERSON WHO HOLDS ONLY
A  FARM WINERY, FARM CIDERY, FARM DISTILLERY, FARM BREWERY OR FARM MEAD-
ERY LICENSE FOR SUCH BEVERAGE, NOR SHALL THIS SECTION EXEMPT ANY  PERSON
HOLDING  A WHOLESALERS' LICENSE UNDER THE ALCOHOLIC BEVERAGE CONTROL LAW
FROM THE REQUIREMENTS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH.
  § 4. This act shall take effect June 1, 2020.

                                 PART K

  Section 1. Subdivision (c) of section 1800 of the tax law, as  amended
by  section  13  of  subpart  I of part V-1 of chapter 57 of the laws of
2009, is amended to read as follows:
  (c) As used in this article, the term "felony" and the term "misdemea-
nor" shall have the same meaning as they have in the penal law, and  the
disposition of such offenses and the sentences imposed therefor shall be
as  provided  in  such law except; (1) notwithstanding the provisions of
paragraph a of subdivision one of section 80.00  and  paragraph  (a)  of
subdivision  one  of section 80.10 of the penal law relating to the fine

S. 7509                            18                            A. 9509

for a felony, the court may impose a fine not to exceed the  greater  of
double  the  amount  of  [the underpaid tax liability resulting from the
commission of the crime]  TAX  LIABILITY  EVADED  OR  FRAUDULENT  REFUND
RECEIVED  OR  APPLIED FOR AS A RESULT OF THE COMMISSION OF THE CRIME, or
fifty thousand dollars, or, in the case of a corporation  the  fine  may
not  exceed  the  greater  of  double  the  amount of [the underpaid tax
liability resulting from the commission  of  the  crime]  TAX  LIABILITY
EVADED  OR  FRAUDULENT REFUND RECEIVED OR APPLIED FOR AS A RESULT OF THE
COMMISSION OF THE CRIME, or two hundred fifty thousand dollars  and  (2)
notwithstanding  the  provisions of subdivision one of section 80.05 and
paragraph (b) of subdivision one of  section  80.10  of  the  penal  law
relating  to  the fine for a class A misdemeanor, the court may impose a
fine not to exceed ten thousand dollars, except that in the  case  of  a
corporation the fine may not exceed twenty thousand dollars.
  §  2. Section 1803 of the tax law, as added by section 17 of subpart I
of part V-1 of chapter 57 of the laws of 2009, is  amended  to  read  as
follows:
  §  1803.  Criminal  tax  fraud  in the fourth degree. A person commits
criminal tax fraud in the fourth degree when he or  she  commits  a  tax
fraud  act or acts and[, with the intent to evade any tax due under this
chapter, or to defraud] THEREBY DEPRIVES OR DEFRAUDS the  state  or  any
POLITICAL subdivision [thereof, the person pays the state and/or a poli-
tical  subdivision  of  the  state  (whether by means of underpayment or
receipt of refund or both), in a period of not more  than  one  year  in
excess] of THE STATE IN AN AMOUNT EXCEEDING three thousand dollars [less
than  the  tax  liability that is due]. Criminal tax fraud in the fourth
degree is a class E felony.
  § 3. Section 1804 of the tax law, as added by section 18 of subpart  I
of  part  V-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  § 1804. Criminal tax fraud in the third degree. A person commits crim-
inal tax fraud in the third degree when he or she commits  a  tax  fraud
act  or acts and[, with the intent to evade any tax due under this chap-
ter, or to defraud] THEREBY DEPRIVES OR DEFRAUDS the state or any  poli-
tical  subdivision  of  the  state[,  the person pays the state and/or a
political subdivision of the state (whether by means of underpayment  or
receipt  of  refund  or  both), in a period of not more than one year in
excess of] IN AN AMOUNT EXCEEDING ten thousand dollars  [less  than  the
tax liability that is due].  Criminal tax fraud in the third degree is a
class D felony.
  §  4. Section 1805 of the tax law, as added by section 19 of subpart I
of part V-1 of chapter 57 of the laws of 2009, is  amended  to  read  as
follows:
  §  1805.  Criminal  tax  fraud  in the second degree. A person commits
criminal tax fraud in the second degree when he or  she  commits  a  tax
fraud  act or acts and[, with the intent to evade any tax due under this
chapter, or to defraud] THEREBY DEPRIVES OR DEFRAUDS the  state  or  any
subdivision  of the state[, the person pays the state and/or a political
subdivision of the state (whether by means of underpayment or receipt of
refund or both), in a period of not more than one year in excess of]  IN
AN  AMOUNT EXCEEDING fifty thousand dollars [less than the tax liability
that is due]. Criminal tax fraud in the second degree is a class C felo-
ny.
  § 5. Section 1806 of the tax law, as added by section 20 of subpart  I
of  part  V-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:

S. 7509                            19                            A. 9509

  § 1806. Criminal tax fraud in the first degree. A person commits crim-
inal tax fraud in the first degree when he or she commits  a  tax  fraud
act  or acts and[, with the intent to evade any tax due under this chap-
ter, or to defraud] THEREBY DEPRIVES OR DEFRAUDS the state or any subdi-
vision  of  the  state[,  the  person  pays the state and/or a political
subdivision of the state (whether by means of underpayment or receipt of
refund or both), in a period of not more than one year in excess of]  IN
AN  AMOUNT  EXCEEDING  one  million dollars [less than the tax liability
that is due]. Criminal tax fraud in the first degree is a class B  felo-
ny.
  § 6. Section 1807 of the tax law, as amended by section 5 of subpart A
of  part  S  of  chapter  57  of the laws of 2010, is amended to read as
follows:
  § 1807. Aggregation. For purposes of this article, [the  payments  due
and not paid under a single article of this chapter pursuant to a common
scheme or plan or due and not paid, within one year, may be charged in a
single count, and the amount of underpaid tax liability incurred, within
one  year,]  (A) THE AMOUNT DEPRIVED OR DEFRAUDED WITHIN A THREE HUNDRED
SIXTY-FIVE CONSECUTIVE DAY PERIOD may be aggregated in a  single  count,
OR  (B) WHEN A PERSON IS SHOWN TO BE ACTING PURSUANT TO A COMMON PLAN OR
SCHEME CONSTITUTING A SYSTEMATIC ONGOING COURSE OF  CONDUCT,  THE  TOTAL
AMOUNT DEPRIVED OR DEFRAUDED UNDER SUCH SCHEME OR PLAN MAY BE CHARGED IN
A SINGLE COUNT.
  §  7.  The  tax law is amended by adding a new section 1810 to read as
follows:
  § 1810. CRIMINAL TAX  PREPARATION  IN  THE  SECOND  DEGREE.  A  PERSON
COMMITS  CRIMINAL  TAX  PREPARATION  IN THE SECOND DEGREE WHEN HE OR SHE
FILES OR CAUSES TO BE FILED TEN OR MORE TAX RETURNS WITH THE DEPARTMENT,
WITHIN A PERIOD OF NOT MORE THAN THREE  HUNDRED  SIXTY-FIVE  CONSECUTIVE
DAYS,  KNOWING  THAT EACH CONTAINS MATERIALLY FALSE INFORMATION OR OMITS
MATERIAL INFORMATION WITH THE INTENT TO EVADE OR REDUCE ANY TAX  LIABIL-
ITY  OWED  OR TO EFFECT OR INFLATE A REFUND. CRIMINAL TAX PREPARATION IN
THE SECOND DEGREE IS A CLASS D FELONY.
  § 8. The tax law is amended by adding a new section 1810-a to read  as
follows:
  §  1810-A.  CRIMINAL  TAX  PREPARATION  IN  THE FIRST DEGREE. A PERSON
COMMITS CRIMINAL TAX PREPARATION IN THE FIRST  DEGREE  WHEN  HE  OR  SHE
FILES  OR  CAUSES TO BE FILED FIFTY OR MORE TAX RETURNS WITH THE DEPART-
MENT, WITHIN A PERIOD OF NOT MORE THAN THREE HUNDRED SIXTY-FIVE  CONSEC-
UTIVE  DAYS,  KNOWING THAT EACH CONTAINS MATERIALLY FALSE INFORMATION OR
OMITS MATERIAL INFORMATION WITH THE INTENT TO EVADE OR  REDUCE  ANY  TAX
LIABILITY  OWED  OR TO EFFECT OR INFLATE A REFUND. CRIMINAL TAX PREPARA-
TION IN THE FIRST DEGREE IS A CLASS C FELONY.
  § 9. This act  shall  take  effect  immediately  and  shall  apply  to
offenses committed on or after such effective date.

                                 PART L

  Section  1.  Section 352 of the economic development law is amended by
adding a new subdivision 8-a to read as follows:
  8-A. "GREEN PROJECT" MEANS A PROJECT DEEMED  BY  THE  COMMISSIONER  TO
MAKE  PRODUCTS  OR  DEVELOP TECHNOLOGIES THAT ARE SUBSTANTIALLY AIMED AT
REDUCING GREENHOUSE GAS EMISSIONS OR SUPPORTING THE USE OF CLEAN  ENERGY
IN  ACCORDANCE  WITH  GOALS  DESCRIBED IN CHAPTER ONE HUNDRED SIX OF THE
LAWS OF TWO THOUSAND NINETEEN, ALONG WITH  THE  STATE  ENERGY  PLAN  AND
FUTURE  UPDATES  AS DESCRIBED IN SECTION 6-104 OF THE ENERGY LAW. "GREEN

S. 7509                            20                            A. 9509

PROJECT" SHALL INCLUDE, BUT NOT BE LIMITED TO, THE MANUFACTURE OR DEVEL-
OPMENT OF PRODUCTS OR TECHNOLOGIES OR SUPPLY CHAIN COMPONENTS  PRIMARILY
FOR  RENEWABLE  ENERGY  SYSTEMS AS DEFINED IN SECTION SIXTY-SIX-P OF THE
PUBLIC  SERVICE LAW, VEHICLES THAT USE NON-HYDROCARBON FUELS AND PRODUCE
ZERO OR NEAR ZERO  EMISSIONS,  HEAT  PUMPS,  ENERGY  EFFICIENCY,  CARBON
CAPTURE  AND  STORAGE,  CLEAN  ENERGY  STORAGE  AND  OTHER PRODUCTS THAT
SIGNIFICANTLY REDUCE GREENHOUSE GAS EMISSIONS BY MINIMIZING THE UTILIZA-
TION OF DEPLETABLE RESOURCES  OR  BY  IMPROVING  INDUSTRIAL  EFFICIENCY.
"GREEN  PROJECT"  SHALL  NOT INCLUDE A PROJECT PRIMARILY COMPOSED OF (I)
NECESSARILY LOCAL ACTIVITIES SUCH AS RETAIL, BUILDING  CONSTRUCTION,  OR
THE  INSTALLATION,  DEPLOYMENT  OR ADOPTION OF A CLEAN ENERGY PRODUCT OR
TECHNOLOGY AT AN END USER'S SITE, OR (II) THE PRODUCTION OF PRODUCTS  OR
DEVELOPMENT  OF TECHNOLOGIES THAT WOULD PRODUCE ONLY MARGINAL AND INCRE-
MENTAL ENERGY SAVINGS OR ENVIRONMENTAL BENEFITS ANCILLARY  TO  THE  CORE
FUNCTION OF THE PRODUCT OR TECHNOLOGY.
  §  2. Subdivision 1 of section 353 of the economic development law, as
amended by section 2 of part K of chapter 59 of the  laws  of  2017,  is
amended to read as follows:
  1. To be a participant in the excelsior jobs program, a business enti-
ty shall operate in New York state predominantly:
  (a)  as  a financial services data center or a financial services back
office operation;
  (b) in manufacturing;
  (c) in software development and new media;
  (d) in scientific research and development;
  (e) in agriculture;
  (f) in the creation or expansion of  back  office  operations  in  the
state;
  (g) in a distribution center;
  (h)  in  an  industry  with  significant  potential for private-sector
economic growth and development in this  state  as  established  by  the
commissioner  in  regulations  promulgated  pursuant to this article. In
promulgating such regulations the commissioner  shall  include  job  and
investment criteria;
  (i) as an entertainment company;
  (j) in music production; [or]
  (k) as a life sciences company; OR
  (L)  AS  A  COMPANY OPERATING IN ONE OF THE INDUSTRIES LISTED IN PARA-
GRAPHS (B) THROUGH (E) OF THIS  SUBDIVISION  AND  ENGAGING  IN  A  GREEN
PROJECT AS DEFINED IN SECTION THREE HUNDRED FIFTY-TWO OF THIS ARTICLE.
  §  3. Subdivision 5 of section 354 of the economic development law, as
amended by section 4 of part K of chapter 59 of the  laws  of  2017,  is
amended to read as follows:
  5.  A participant may claim tax benefits commencing in the first taxa-
ble year that the business enterprise  receives  a  certificate  of  tax
credit  or  the first taxable year listed on its preliminary schedule of
benefits, whichever is later. A participant may claim such benefits  for
the  next  nine consecutive taxable years, provided that the participant
demonstrates to the department that it continues to satisfy  the  eligi-
bility  criteria  specified in section three hundred fifty-three of this
article and subdivision two of this section in  each  of  those  taxable
years, and provided that no tax credits may be allowed for taxable years
beginning  on  or after January first, two thousand [thirty] FIFTY.  If,
in any given year, a  participant  who  has  satisfied  the  eligibility
criteria  specified in section three hundred fifty-three of this article
realizes job creation less than the estimated amount, the  credit  shall

S. 7509                            21                            A. 9509

be  reduced  by  the  proportion of actual job creation to the estimated
amount, provided the proportion is at least seventy-five percent of  the
jobs estimated.
  §  4.  Subdivisions 1, 2 and 3 of section 355 of the economic develop-
ment law, subdivisions 1 and 2 as amended by section  4  of  part  G  of
chapter  61 of the laws of 2011, and subdivision 3 as amended by section
1 of part YY of chapter 59 of the laws of 2017, are amended to  read  as
follows:
  1. Excelsior jobs tax credit component. A participant in the excelsior
jobs program shall be eligible to claim a credit for each net new job it
creates  in  New  York  state.  [The]  IN  A PROJECT THAT IS NOT A GREEN
PROJECT, THE amount of such credit per job shall be equal to the product
of the gross wages paid and UP TO 6.85 percent. IN A GREEN PROJECT,  THE
AMOUNT OF SUCH CREDIT PER JOB SHALL BE EQUAL TO THE PRODUCT OF THE GROSS
WAGES PAID AND UP TO 7.5 PERCENT.
  2.  Excelsior  investment  tax  credit component. A participant in the
excelsior jobs program shall be eligible to claim a credit on  qualified
investments.  [The] IN A PROJECT THAT IS NOT A GREEN PROJECT, THE credit
shall be equal to two percent of the cost or  other  basis  for  federal
income  tax  purposes  of the qualified investment.  IN A GREEN PROJECT,
THE CREDIT SHALL BE EQUAL TO FIVE PERCENT OF THE COST OR OTHER BASIS FOR
FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT.  A  participant
may not claim both the excelsior investment tax credit component and the
investment  tax  credit set forth in subdivision [twelve] ONE of section
two hundred [ten] TEN-B, subsection (a) of section six hundred six,  THE
FORMER subsection (i) of section fourteen hundred fifty-six, or subdivi-
sion  (q)  of section fifteen hundred eleven of the tax law for the same
property in any taxable year, except that a participant may  claim  both
the  excelsior  investment  tax  credit component and the investment tax
credit for research and development property. In  addition,  a  taxpayer
who  or  which is qualified to claim the excelsior investment tax credit
component and is also qualified to claim the brownfield tangible proper-
ty credit component under section twenty-one of the tax  law  may  claim
either  the  excelsior  investment tax credit component or such tangible
property credit component, but not both  with  regard  to  a  particular
piece  of  property. A credit may not be claimed until a business enter-
prise has received a certificate of tax credit, provided that  qualified
investments  made  on or after the issuance of the certificate of eligi-
bility but before the issuance of the certificate of tax credit  to  the
business  enterprise, may be claimed in the first taxable year for which
the business  enterprise  is  allowed  to  claim  the  credit.  Expenses
incurred  prior to the date the certificate of eligibility is issued are
not eligible to be included in the calculation of the credit.
  3. Excelsior research and development tax credit component. A  partic-
ipant  in the excelsior jobs program shall be eligible to claim a credit
equal to fifty percent of  the  portion  of  the  participant's  federal
research  and  development  tax credit that relates to the participant's
research and development expenditures in New York state during the taxa-
ble year; provided however,  IF  NOT  A  GREEN  PROJECT,  the  excelsior
research  and development tax credit shall not exceed six percent of the
qualified research and development expenditures attributable  to  activ-
ities conducted in New York state, OR, IF A GREEN PROJECT, THE EXCELSIOR
RESEARCH  AND  DEVELOPMENT  TAX CREDIT SHALL NOT EXCEED EIGHT PERCENT OF
THE RESEARCH AND DEVELOPMENT  EXPENDITURES  ATTRIBUTABLE  TO  ACTIVITIES
CONDUCTED  IN  NEW  YORK  STATE. If the federal research and development
credit has expired,  then  the  research  and  development  expenditures

S. 7509                            22                            A. 9509

relating  to the federal research and development credit shall be calcu-
lated as if the federal research and development  credit  structure  and
definition  in  effect  in  two  thousand  nine  were  still  in effect.
Notwithstanding  any  other  provision  of this chapter to the contrary,
research and development expenditures in this state, including salary or
wage expenses for jobs related to research and development activities in
this state, may be used as the basis  for  the  excelsior  research  and
development  tax  credit component and the qualified emerging technology
company facilities, operations and training credit under the tax law.
  § 5. Section 359 of  the  economic  development  law,  as  amended  by
section  5  of  part  K of chapter 59 of the laws of 2017, is amended to
read as follows:
  § 359. Cap on tax credit. [The total amount of tax credits  listed  on
certificates  of  tax  credit issued by the commissioner for any taxable
year may not exceed the limitations set forth in this section.] One-half
of any amount of tax credits not awarded for a particular  taxable  year
[in  years  two thousand eleven through two thousand twenty-four] may be
used by the commissioner to award tax credits in another taxable year.

Credit components in the aggregate           With respect to taxable
shall not exceed:                            years beginning in:

          $ 50 million                               2011
          $ 100 million                              2012
          $ 150 million                              2013
          $ 200 million                              2014
          $ 250 million                              2015
          $ 183 million                              2016
          $ 183 million                              2017
          $ 183 million                              2018
          $ 183 million                              2019
          $ 183 million                              2020
          $ 183 million                              2021
          $ 133 million                              2022
          $ 83 million                               2023
          $ 36 million                               2024
          $ 200 MILLION                              2025
          $ 200 MILLION                              2026
          $ 200 MILLION                              2027
          $ 200 MILLION                              2028
          $ 200 MILLION                              2029
          $ 200 MILLION                              2030
          $ 200 MILLION                              2031
          $ 200 MILLION                              2032
          $ 200 MILLION                              2033
          $ 200 MILLION                              2034
          $ 200 MILLION                              2035
          $ 200 MILLION                              2036
          $ 200 MILLION                              2037
          $ 200 MILLION                              2038
          $ 200 MILLION                              2039

  Twenty-five percent of tax credits shall be  allocated  to  businesses
accepted  into  the  program  under  subdivision  four  of section three
hundred fifty-three of this article  and  seventy-five  percent  of  tax

S. 7509                            23                            A. 9509

credits shall be allocated to businesses accepted into the program under
subdivision three of section three hundred fifty-three of this article.
  Provided,  however,  if by September thirtieth of a calendar year, the
department has not allocated the full amount  of  credits  available  in
that  year  to  either:  (i)  businesses accepted into the program under
subdivision four of section three hundred fifty-three of this article or
(ii) businesses accepted into the program  under  subdivision  three  of
section  three hundred fifty-three of this article, the commissioner may
allocate any remaining tax credits  to  businesses  referenced  in  this
paragraph  as needed; provided, however, that under no circumstances may
the aggregate statutory cap for  all  program  years  be  exceeded.  One
hundred  percent  of  the  unawarded amounts remaining at the end of two
thousand [twenty-four] THIRTY-NINE may be allocated in subsequent years,
notwithstanding the fifty percent limitation on any amounts of tax cred-
its not awarded in taxable years two thousand eleven through  two  thou-
sand  [twenty-four] THIRTY-NINE.   Provided, however, no tax credits may
be allowed for taxable years beginning on or after  January  first,  two
thousand [thirty] FIFTY.
  §  6.  Subdivision  (b)  of  section  31 of the tax law, as amended by
section 6 of part K of chapter 59 of the laws of  2017,  is  amended  to
read as follows:
  (b) To be eligible for the excelsior jobs program credit, the taxpayer
shall  have  been issued a "certificate of tax credit" by the department
of economic development pursuant to subdivision four  of  section  three
hundred  fifty-four  of  the economic development law, which certificate
shall set forth the amount of each credit component that may be  claimed
for  the  taxable year. A taxpayer may claim such credit for ten consec-
utive taxable years commencing  in  the  first  taxable  year  that  the
taxpayer  receives a certificate of tax credit or the first taxable year
listed on its preliminary schedule  of  benefits,  whichever  is  later,
provided  that no tax credits may be allowed for taxable years beginning
on or after January first, two thousand  [thirty]  FIFTY.  The  taxpayer
shall  be  allowed to claim only the amount listed on the certificate of
tax credit for that taxable year. Such certificate must be  attached  to
the  taxpayer's  return.  No  cost  or  expense  paid or incurred by the
taxpayer shall be the basis for more than one component of  this  credit
or  any  other  tax  credit, except as provided in section three hundred
fifty-five of the economic development law.
  § 7. This act shall take effect immediately.

                                 PART M

  Section 1. Paragraph 2 of subdivision (a) of section  24  of  the  tax
law,  as  amended  by  section  4 of part Q of chapter 57 of the laws of
2010, is amended to read as follows:
  (2) The amount of the credit shall be the product (or pro  rata  share
of  the  product,  in the case of a member of a partnership) of [thirty]
TWENTY-FIVE percent and the qualified production costs paid or  incurred
in  the production of a qualified film, provided that: (i) the qualified
production costs (excluding post  production  costs)  paid  or  incurred
which  are  attributable to the use of tangible property or the perform-
ance of  services  at  a  qualified  film  production  facility  in  the
production  of  such qualified film equal or exceed seventy-five percent
of the production  costs  (excluding  post  production  costs)  paid  or
incurred  which  are attributable to the use of tangible property or the
performance of services at any film production facility within and with-

S. 7509                            24                            A. 9509

out the state in the production of such qualified film, and (ii)  except
with  respect  to  a  qualified  independent  film production company or
pilot, at least ten percent of the total principal photography  shooting
days  spent  in the production of such qualified film must be spent at a
qualified film production facility. However, if the qualified production
costs (excluding post production costs) which are  attributable  to  the
use  of  tangible property or the performance of services at a qualified
film production facility in the production of  such  qualified  film  is
less  than  three  million  dollars,  then  the portion of the qualified
production costs attributable to the use of  tangible  property  or  the
performance of services in the production of such qualified film outside
of  a  qualified  film  production facility shall be allowed only if the
shooting days spent in New York outside of a film production facility in
the production of such  qualified  film  equal  or  exceed  seventy-five
percent  of  the  total  shooting days spent within and without New York
outside of a film production facility in the production of  such  quali-
fied film. The credit shall be allowed for the taxable year in which the
production  of such qualified film is completed. However, in the case of
a qualified film that receives funds from additional pool 2,  no  credit
shall be claimed before the later of (1) the taxable year the production
of  the  qualified film is complete, or (2) the taxable year immediately
following the allocation year for which  the  film  has  been  allocated
credit by the governor's office for motion picture and television devel-
opment.  If the amount of the credit is at least one million dollars but
less than five million dollars, the credit shall be claimed over  a  two
year  period beginning in the first taxable year in which the credit may
be claimed and in the next succeeding taxable year, with one-half of the
amount of credit allowed being claimed in each year. If  the  amount  of
the credit is at least five million dollars, the credit shall be claimed
over  a  three  year period beginning in the first taxable year in which
the credit may be claimed and in the next two succeeding taxable  years,
with one-third of the amount of the credit allowed being claimed in each
year.
  §  2.  Paragraph 2 of subdivision (a) of section 24 of the tax law, as
amended by section 4 of part Q of chapter 57 of the  laws  of  2010,  is
amended to read as follows:
  (2)  The  amount of the credit shall be the product (or pro rata share
of the product, in the case of a member  of  a  partnership)  of  thirty
percent  and  the  qualified  production  costs  paid or incurred in the
production of  a  qualified  film,  provided  that:  (i)  the  qualified
production  costs  (excluding  post  production  costs) paid or incurred
which are attributable to the use of tangible property or  the  perform-
ance  of  services  at  a  qualified  film  production  facility  in the
production of such qualified film equal or exceed  seventy-five  percent
of  the  production  costs  (excluding  post  production  costs) paid or
incurred which are attributable to the use of tangible property  or  the
performance of services at any film production facility within and with-
out  the state in the production of such qualified film, and (ii) except
with respect to a  qualified  independent  film  production  company  or
pilot,  at least ten percent of the total principal photography shooting
days spent in the production of such qualified film must be spent  at  a
qualified film production facility. However, if the qualified production
costs  (excluding  post  production costs) which are attributable to the
use of tangible property or the performance of services at  a  qualified
film  production  facility  in  the production of such qualified film is
less than three million dollars,  then  the  portion  of  the  qualified

S. 7509                            25                            A. 9509

production  costs  attributable  to  the use of tangible property or the
performance of services in the production of such qualified film outside
of a qualified film production facility shall be  allowed  only  if  the
shooting days spent in New York outside of a film production facility in
the  production  of  such  qualified  film  equal or exceed seventy-five
percent of the total shooting days spent within  and  without  New  York
outside  of  a film production facility in the production of such quali-
fied film. The credit shall be allowed for the taxable year in which the
production of such qualified film is completed. However, in the case  of
a  qualified  film that receives funds from additional pool 2, no credit
shall be claimed before the later of (1) the taxable year the production
of the qualified film is complete, or (2) the FIRST taxable year  BEGIN-
NING  immediately  [following]  AFTER  the allocation year for which the
film has been allocated credit  by  the  governor's  office  for  motion
picture  and  television  development. If the amount of the credit is at
least one million dollars but less than five million dollars, the credit
shall be claimed over a two year period beginning in the  first  taxable
year in which the credit may be claimed and in the next succeeding taxa-
ble year, with one-half of the amount of credit allowed being claimed in
each year. If the amount of the credit is at least five million dollars,
the  credit  shall  be claimed over a three year period beginning in the
first taxable year in which the credit may be claimed and  in  the  next
two succeeding taxable years, with one-third of the amount of the credit
allowed being claimed in each year.
  §  3.  Paragraph 3 of subdivision (b) of section 24 of the tax law, as
amended by section 1 of part B of chapter 59 of the  laws  of  2013,  is
amended to read as follows:
  (3)  "Qualified  film"  means  a feature-length film, television film,
relocated television production, television pilot [and/or  each  episode
of  a]  OR television series, regardless of the medium by means of which
the film, pilot or [episode] SERIES is created or conveyed. A "QUALIFIED
FILM" WITH THE EXCEPTION OF A TELEVISION PILOT, WHOSE MAJORITY OF  PRIN-
CIPAL  PHOTOGRAPHY SHOOTING DAYS IN THE PRODUCTION OF THE QUALIFIED FILM
ARE SHOT IN WESTCHESTER, ROCKLAND, NASSAU, OR SUFFOLK COUNTY OR  ANY  OF
THE  FIVE  NEW  YORK  CITY  BOROUGHS  SHALL HAVE A MINIMUM BUDGET OF ONE
MILLION DOLLARS. A "QUALIFIED FILM", WITH THE EXCEPTION OF A  TELEVISION
PILOT,  WHOSE  MAJORITY  OF  PRINCIPAL  PHOTOGRAPHY SHOOTING DAYS IN THE
PRODUCTION OF THE QUALIFIED FILM ARE SHOT IN ANY  OTHER  COUNTY  OF  THE
STATE  THAN  THOSE LISTED IN THE PRECEDING SENTENCE SHALL HAVE A MINIMUM
BUDGET OF TWO HUNDRED FIFTY THOUSAND DOLLARS. "Qualified film" shall not
include: (i) a documentary film, news or current affairs program, inter-
view or talk program, "how-to" (i.e., instructional)  film  or  program,
film or program consisting primarily of stock footage, sporting event or
sporting  program,  game  show, award ceremony, film or program intended
primarily  for  industrial,  corporate   or   institutional   end-users,
fundraising film or program, daytime drama (i.e., daytime "soap opera"),
commercials, music videos or "reality" program, or (ii) a production for
which records are required under section 2257 of title 18, United States
code,  to be maintained with respect to any performer in such production
(reporting of books, films,  etc.  with  respect  to  sexually  explicit
conduct).
  §  4.  Paragraph 3 of subdivision (b) of section 24 of the tax law, as
amended by section 1 of part B of chapter 59 of the  laws  of  2013,  is
amended to read as follows:
  (3)  "Qualified  film"  means  a feature-length film, television film,
relocated television production, television pilot and/or each episode of

S. 7509                            26                            A. 9509

a television series, regardless of the medium  by  means  of  which  the
film,  pilot  or  episode is created or conveyed. "Qualified film" shall
not include: (i) a documentary film, news or  current  affairs  program,
interview  or  talk  program,  "how-to"  (i.e.,  instructional)  film or
program, film or program consisting primarily of stock footage, sporting
event or sporting program, game show, award ceremony,  film  or  program
intended primarily for industrial, corporate or institutional end-users,
fundraising film or program, daytime drama (i.e., daytime "soap opera"),
commercials,  music videos or "reality" program[, or]; (ii) a production
for which records are required under section 2257 of  title  18,  United
States  code,  to  be  maintained  with respect to any performer in such
production (reporting of books, films, etc.  with  respect  to  sexually
explicit   conduct);   OR   (III)  OTHER  THAN  A  RELOCATED  TELEVISION
PRODUCTION, A TELEVISION SERIES COMMONLY KNOWN AS VARIETY ENTERTAINMENT,
VARIETY SKETCH AND VARIETY TALK, I.E.,  A  PROGRAM  WITH  COMPONENTS  OF
IMPROVISATIONAL  OR SCRIPTED CONTENT (MONOLOGUES, SKETCHES, INTERVIEWS),
EITHER EXCLUSIVELY OR IN COMBINATION WITH OTHER  ENTERTAINMENT  ELEMENTS
SUCH  AS MUSICAL PERFORMANCES, DANCING, COOKING, CRAFTS, PRANKS, STUNTS,
AND GAMES AND WHICH MAY BE FURTHER DEFINED IN REGULATIONS OF THE COMMIS-
SIONER OF ECONOMIC DEVELOPMENT. HOWEVER, A QUALIFIED FILM SHALL  INCLUDE
A TELEVISION SERIES AS DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH
ONLY  IF  AN  APPLICATION  FOR SUCH SERIES HAS BEEN DEEMED CONDITIONALLY
ELIGIBLE FOR THE TAX CREDIT UNDER THIS SECTION PRIOR TO APRIL FIRST, TWO
THOUSAND TWENTY, SUCH SERIES REMAINS IN CONTINUOUS PRODUCTION  FOR  EACH
SEASON,  AND  AN  ANNUAL  APPLICATION  FOR EACH SEASON OF SUCH SERIES IS
CONTINUALLY SUBMITTED FOR SUCH SERIES AFTER APRIL  FIRST,  TWO  THOUSAND
TWENTY.
  §  5.  Paragraph 2 of subdivision (a) of section 31 of the tax law, as
amended by chapter 268 of the laws  of  2012,  is  amended  to  read  as
follows:
  (2)  The  amount of the credit shall be the product (or pro rata share
of the product, in the case of a member of a  partnership)  of  [thirty]
TWENTY-FIVE  percent and the qualified post production costs paid in the
production of a qualified film at a qualified post  production  facility
located  within  the  metropolitan  commuter  transportation district as
defined in section twelve hundred sixty-two of  the  public  authorities
law  or  [thirty-five]  THIRTY percent and the qualified post production
costs paid in the production of a qualified film  at  a  qualified  post
production facility located elsewhere in the state.
  § 5-a. Paragraph 5 of subdivision (a) of section 24 of the tax law, as
amended  by  section 1 of part SSS of chapter 59 of the laws of 2019, is
amended to read as follows:
  (5) For the period two thousand fifteen through two thousand  [twenty-
four]  TWENTY-FIVE,  in  addition to the amount of credit established in
paragraph two of this subdivision, a taxpayer shall be allowed a  credit
equal to the product (or pro rata share of the product, in the case of a
member of a partnership) of ten percent and the amount of wages or sala-
ries  paid to individuals directly employed (excluding those employed as
writers, directors, music directors, producers and performers, including
background actors with no scripted lines) by a qualified film production
company or a qualified independent film production company for  services
performed  by those individuals in one of the counties specified in this
paragraph in connection with a qualified film with a minimum  budget  of
five  hundred  thousand dollars. For purposes of this additional credit,
the services must be performed in one or more of the following counties:
Albany, Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung,

S. 7509                            27                            A. 9509

Chenango,  Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
Livingston, Madison,  Monroe,  Montgomery,  Niagara,  Oneida,  Onondaga,
Ontario,  Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,
Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben,  Sulli-
van,  Tioga,  Tompkins,  Ulster,  Warren, Washington, Wayne, Wyoming, or
Yates. The aggregate amount of  tax  credits  allowed  pursuant  to  the
authority  of  this  paragraph  shall  be five million dollars each year
during the period two thousand fifteen  through  two  thousand  [twenty-
four] TWENTY-FIVE of the annual allocation made available to the program
pursuant  to  paragraph  four  of  subdivision (e) of this section. Such
aggregate amount of credits shall be allocated by the governor's  office
for  motion  picture and television development among taxpayers in order
of priority based upon the date of filing an application for  allocation
of  film  production  credit  with such office.   If the total amount of
allocated credits applied for under this paragraph in any  year  exceeds
the  aggregate  amount  of  tax credits allowed for such year under this
paragraph, such excess shall be treated as having been  applied  for  on
the  first  day  of  the next year. If the total amount of allocated tax
credits applied for under this paragraph at the conclusion of  any  year
is  less  than  five  million dollars, the remainder shall be treated as
part of the annual allocation made available to the program pursuant  to
paragraph  four of subdivision (e) of this section. However, in no event
may the total of the credits allocated  under  this  paragraph  and  the
credits  allocated  under  paragraph  five of subdivision (a) of section
thirty-one of this article exceed  five  million  dollars  in  any  year
during  the  period  two  thousand fifteen through two thousand [twenty-
four] TWENTY-FIVE.
  § 5-b. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended by chapter 683 of the laws  of  2019,  is  amended  to  read  as
follows:
  (4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through  two  thousand [twenty-four] TWENTY-FIVE provided however, seven
million dollars of the annual allocation  shall  be  available  for  the
empire  state film post production credit pursuant to section thirty-one
of this article in two thousand  thirteen  and  two  thousand  fourteen,
twenty-five  million dollars of the annual allocation shall be available
for the empire state film post production  credit  pursuant  to  section
thirty-one of this article in each year starting in two thousand fifteen
through  two thousand [twenty-four] TWENTY-FIVE and five million dollars
of the annual allocation shall be  made  available  for  the  television
writers'  and  directors'  fees  and salaries credit pursuant to section
twenty-four-b of this article in each  year  starting  in  two  thousand
twenty through two thousand [twenty-four] TWENTY-FIVE. This amount shall
be  allocated by the governor's office for motion picture and television
development among taxpayers in accordance with subdivision (a)  of  this
section. If the commissioner of economic development determines that the
aggregate amount of tax credits available from additional pool 2 for the
empire  state film production tax credit have been previously allocated,
and determines that the pending applications  from  eligible  applicants
for the empire state film post production tax credit pursuant to section
thirty-one  of  this  article  is insufficient to utilize the balance of
unallocated empire state film post  production  tax  credits  from  such
pool,  the  remainder,  after  such pending applications are considered,

S. 7509                            28                            A. 9509

shall be made available for allocation in  the  empire  state  film  tax
credit  pursuant  to  this  section,  subdivision  twenty of section two
hundred ten-B and subsection (gg) of section six  hundred  six  of  this
chapter.  Also,  if  the commissioner of economic development determines
that the aggregate amount of tax credits available from additional  pool
2  for the empire state film post production tax credit have been previ-
ously allocated, and  determines  that  the  pending  applications  from
eligible  applicants  for  the  empire  state film production tax credit
pursuant to this section is insufficient to utilize the balance of unal-
located film production tax credits from such pool, then all or part  of
the  remainder, after such pending applications are considered, shall be
made available for allocation for the empire state film post  production
credit  pursuant  to this section, subdivision thirty-two of section two
hundred ten-B and subsection (qq) of section six  hundred  six  of  this
chapter.  The governor's office for motion picture and television devel-
opment must notify taxpayers of their allocation year  and  include  the
allocation  year on the certificate of tax credit. Taxpayers eligible to
claim a credit must report the allocation year directly on their  empire
state  film production credit tax form for each year a credit is claimed
and include a copy of the certificate with their tax return. In the case
of a qualified film that receives  funds  from  additional  pool  2,  no
empire state film production credit shall be claimed before the later of
the  taxable  year  the production of the qualified film is complete, or
the taxable year immediately following the allocation year for which the
film has been allocated credit  by  the  governor's  office  for  motion
picture and television development.
  §  6.  This act shall take effect immediately; provided, however, that
the amendments made by sections one, three and five of  this  act  shall
apply  to  applications  that  are  filed with the governor's office for
motion picture and television development on or after April 1, 2020.

                                 PART N

  Section 1. Subdivision 13 of section 1901 of the real property tax law
is amended by adding a new paragraph (c) to read as follows:
  (C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE  GOVERN-
ING  BODY  OF A MUNICIPAL CORPORATION THAT HAS ADOPTED THE PROVISIONS OF
PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION FIVE HUNDRED  EIGHTY-ONE  OF
THIS  CHAPTER  RELATING  TO CONVERTED CONDOMINIUM UNITS IS AUTHORIZED TO
ADOPT A LOCAL LAW OR, IN THE CASE OF A SCHOOL  DISTRICT,  A  RESOLUTION,
PROVIDING  THAT  SUCH CONVERTED CONDOMINIUM UNITS SHALL BE CLASSIFIED IN
THE HOMESTEAD CLASS FOR PURPOSES  OF  TAXES  LEVIED  BY  SUCH  MUNICIPAL
CORPORATION.
  § 2. This act shall take effect immediately.

                                 PART O

  Section  1.  The  tax  law is amended by adding a new section 171-w to
read as follows:
  § 171-W. STATE SUPPORT FOR THE LOCAL ENFORCEMENT OF PAST-DUE  PROPERTY
TAXES. 1. LEGISLATIVE FINDINGS. THE LEGISLATURE FINDS THAT LOCAL GOVERN-
MENTS  HAVE LIMITED MEANS TO ENFORCE THE COLLECTION OF PAST-DUE PROPERTY
TAXES. THE LEGISLATURE FURTHER FINDS THAT  IT  IS  APPROPRIATE  FOR  THE
STATE  TO  SUPPORT  THE  LOCAL ENFORCEMENT OF PAST-DUE PROPERTY TAXES BY
AUTHORIZING THE COMMISSIONER TO ADMINISTER A PROGRAM  TO  DISALLOW  STAR

S. 7509                            29                            A. 9509

CREDITS  AND  EXEMPTIONS TO DELINQUENT PROPERTY OWNERS BASED ON INFORMA-
TION REPORTED TO HIM OR HER BY MUNICIPAL OFFICIALS.
  2. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION:
  (A)  "DELINQUENT  PROPERTY OWNER" MEANS A STAR RECIPIENT WHOSE PRIMARY
RESIDENCE IS SUBJECT TO PAST-DUE PROPERTY TAXES.
  (B) "PAST-DUE PROPERTY TAXES" MEANS  PROPERTY  TAXES  THAT  HAVE  BEEN
LEVIED  UPON A PROPERTY OWNER'S PRIMARY RESIDENCE THAT REMAIN UNPAID ONE
YEAR AFTER THE LAST DATE ON WHICH THEY  COULD  HAVE  BEEN  PAID  WITHOUT
INTEREST,  OR  WHERE SUCH TAXES ARE PAYABLE IN INSTALLMENTS, THOSE TAXES
THAT REMAIN UNPAID ONE YEAR AFTER THE  LAST  DATE  ON  WHICH  THE  FINAL
INSTALLMENT COULD HAVE BEEN PAID WITHOUT INTEREST.
  (C)  "STAR  CREDIT" MEANS THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY
SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
  (D) "STAR EXEMPTION" MEANS THE EXEMPTION FROM REAL  PROPERTY  TAXATION
AUTHORIZED  BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX
LAW.
  (E) "STAR RECIPIENT" MEANS A  PROPERTY  OWNER  WHO  IS  REGISTERED  TO
RECEIVE  THE STAR CREDIT IN RELATION TO HIS OR HER PRIMARY RESIDENCE, OR
WHOSE PRIMARY RESIDENCE IS RECEIVING THE STAR EXEMPTION.
  3.  STAR  TAX  PAYMENT  REQUIREMENT;  GENERALLY.  NOTWITHSTANDING  ANY
PROVISION  OF  LAW TO THE CONTRARY, A PROPERTY OWNER WHOSE PRIMARY RESI-
DENCE IS SUBJECT TO PAST-DUE PROPERTY TAXES  SHALL  NOT  BE  ALLOWED  TO
RECEIVE  A  STAR  CREDIT  OR STAR EXEMPTION UNLESS THE PAST-DUE PROPERTY
TAXES ARE PAID IN FULL ON OR BEFORE A DATE SPECIFIED BY THE  COMMISSION-
ER.
  4.  COMMISSIONER'S AUTHORITY. THE COMMISSIONER IS HEREBY AUTHORIZED TO
DEVELOP A PROGRAM TO SUPPORT THE LOCAL ENFORCEMENT OF PAST-DUE  PROPERTY
TAXES  BY  DISALLOWING  STAR  CREDITS  AND STAR EXEMPTIONS TO DELINQUENT
PROPERTY OWNERS. THE COMMISSIONER SHALL  ESTABLISH  PROCEDURES  FOR  THE
ADMINISTRATION  OF  THIS  PROGRAM,  WHICH  SHALL  INCLUDE  THE FOLLOWING
PROVISIONS:
  (A) THE PROCEDURES BY WHICH MUNICIPAL OFFICIALS SHALL REPORT  PAST-DUE
PROPERTY TAXES AND PROPERTY TAX PAYMENTS TO THE DEPARTMENT.
  (B)  THE  PROCEDURES  BY  WHICH THE DEPARTMENT SHALL NOTIFY DELINQUENT
PROPERTY OWNERS OF THE IMPENDING DISALLOWANCE OF THEIR STAR  CREDITS  OR
EXEMPTIONS DUE TO PAST-DUE PROPERTY TAXES.
  (C)  THE DATE BY WHICH DELINQUENT PROPERTY OWNERS MUST PAY THEIR PAST-
DUE PROPERTY TAXES IN FULL IN ORDER TO AVOID DISALLOWANCE OF THEIR  STAR
CREDITS OR EXEMPTIONS.
  (D) THE PROCEDURES BY WHICH THE COMMISSIONER SHALL DISALLOW STAR CRED-
ITS AND NOTIFY ASSESSORS OF THE DISALLOWANCE OF STAR EXEMPTIONS IF PAST-
DUE PROPERTY TAXES ARE NOT PAID IN FULL BY THE SPECIFIED DATE.
  (E)  SUCH OTHER PROCEDURES AS THE COMMISSIONER SHALL DEEM NECESSARY TO
CARRY OUT THE PROVISIONS OF THIS SECTION.
  5. MUNICIPAL REPORTS. THE COMMISSIONER'S PROCEDURES REGARDING  MUNICI-
PAL REPORTING SHALL BE SUBJECT TO THE FOLLOWING PROVISIONS:
  (A) THE COMMISSIONER MAY REQUEST AND SHALL BE ENTITLED TO RECEIVE FROM
ANY MUNICIPAL CORPORATION OF THE STATE, OR ANY AGENCY OR OFFICIAL THERE-
OF,  SUCH  DATA  AS  THE  COMMISSIONER DEEMS NECESSARY TO EFFECTUATE THE
PURPOSES OF THIS SECTION.  SUCH INFORMATION SHALL BE  SUBMITTED  TO  THE
DEPARTMENT  AT  SUCH  TIME  AND  IN  SUCH MANNER AS THE COMMISSIONER MAY
DIRECT.
  (B) IN LIEU OF REQUIRING MUNICIPAL OFFICIALS TO SUBMIT  THEIR  REPORTS
DIRECTLY  TO  THE  DEPARTMENT,  THE  COMMISSIONER  MAY,  IN  HIS  OR HER
DISCRETION, REQUIRE THAT SUCH REPORTS BE SUBMITTED TO THE COUNTY  DIREC-
TOR  OF REAL PROPERTY TAX SERVICES, WHO SHALL INTEGRATE THE REPORTS INTO

S. 7509                            30                            A. 9509

A SINGLE FILE AND SUBMIT IT TO THE DEPARTMENT AT SUCH TIME AND  IN  SUCH
MANNER  AS THE COMMISSIONER MAY DIRECT. PROVIDED, THAT WHERE THE COMMIS-
SIONER INSTITUTES SUCH A PROCEDURE, HE OR SHE MAY  EXCLUDE  CITIES  WITH
ONE  HUNDRED  TWENTY-FIVE THOUSAND INHABITANTS OR MORE, SO THAT INFORMA-
TION ABOUT PAST-DUE PROPERTY TAXES AND PROPERTY TAX PAYMENTS IN  SUCH  A
CITY  SHALL  BE REPORTED DIRECTLY TO THE DEPARTMENT BY A DESIGNATED CITY
OFFICIAL AT SUCH TIME AND IN SUCH MANNER AS THE COMMISSIONER MAY DIRECT.
  (C) REPORTS AND OTHER RECORDS PREPARED PURSUANT TO THIS SECTION  SHALL
NOT  BE  SUBJECT TO THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS
LAW.
  6. NOTIFICATION OF  DELINQUENT  PROPERTY  OWNERS.  THE  COMMISSIONER'S
PROCEDURES  REGARDING  THE  NOTIFICATION  OF  DELINQUENT PROPERTY OWNERS
SHALL BE SUBJECT TO THE FOLLOWING PROVISIONS:
  (A) THE DEPARTMENT SHALL NOTIFY A DELINQUENT PROPERTY OWNER BY REGULAR
MAIL AT LEAST THIRTY DAYS PRIOR TO THE DATE BY WHICH HIS OR HER PAST-DUE
PROPERTY TAXES MUST BE PAID IN FULL IN ORDER TO  AVOID  DISALLOWANCE  OF
HIS OR HER STAR CREDIT OR EXEMPTION.
  (B)  SUCH  NOTICE  SHALL INCLUDE A STATEMENT THAT THE PROPERTY OWNER'S
STAR CREDIT OR EXEMPTION WILL BE DISALLOWED UNLESS HIS OR  HER  PAST-DUE
PROPERTY TAXES ARE PAID IN FULL BY THE DATE SPECIFIED IN THE NOTICE.
  (C)  TO  THE  EXTENT  PRACTICABLE,  SUCH  NOTICE SHALL PROVIDE CONTACT
INFORMATION FOR THE LOCAL OFFICIAL OR OFFICIALS  TO  WHOM  THE  PAST-DUE
PROPERTY TAXES MAY BE PAID.
  (D) SUCH NOTICE SHALL FURTHER STATE THAT THE PROPERTY OWNER'S RIGHT TO
PROTEST  THE  DISALLOWANCE OF THE STAR CREDIT OR EXEMPTION IS LIMITED TO
RAISING ISSUES THAT CONSTITUTE A "MISTAKE OF FACT" AS DEFINED IN  SUBDI-
VISION NINE OF THIS SECTION.
  (E) SUCH NOTICE MAY INCLUDE SUCH OTHER INFORMATION AS THE COMMISSIONER
MAY DEEM NECESSARY.
  7. TIMELY PAYMENT OF PAST-DUE PROPERTY TAXES. IF A DELINQUENT PROPERTY
OWNER  PAYS  HIS OR HER PAST-DUE PROPERTY TAXES IN FULL ON OR BEFORE THE
DATE SPECIFIED IN SUCH NOTICE, THE OFFICIAL RECEIVING SUCH PAYMENT SHALL
SO NOTIFY THE DEPARTMENT AT SUCH TIME AND IN SUCH MANNER  AS  PRESCRIBED
BY  THE  COMMISSIONER.  THE  PROPERTY  OWNER  SHALL THEN BE PERMITTED TO
RECEIVE THE STAR CREDIT OR EXEMPTION THAT WOULD HAVE BEEN DISALLOWED  IF
TIMELY  PAYMENT  HAD  NOT BEEN MADE. HOWEVER, IF THE DEPARTMENT DOES NOT
LEARN OF THE PAYMENT UNTIL AFTER IT HAS ALREADY DIRECTED AN ASSESSOR  TO
DENY  A  STAR  EXEMPTION TO A DELINQUENT PROPERTY OWNER, THEN IN LIEU OF
DIRECTING THE EXEMPTION TO BE RESTORED, THE DEPARTMENT MAY REMIT TO  THE
PROPERTY  OWNER  PAYMENT  IN  AN AMOUNT THAT WILL REIMBURSE THE PROPERTY
OWNER FOR THE INCREASE IN HIS OR HER SCHOOL TAX BILL  THAT  IS  DIRECTLY
ATTRIBUTABLE TO THE LOST STAR EXEMPTION.
  8.  FAILURE  TO MAKE TIMELY PAYMENT. (A) IF THE PAST-DUE TAXES ARE NOT
PAID ON OR BEFORE THE DATE SPECIFIED IN THE NOTICE THAT HAD BEEN SENT TO
THE DELINQUENT PROPERTY OWNER, HIS OR HER STAR CREDIT OR STAR  EXEMPTION
SHALL BE DISALLOWED IN ACCORDANCE WITH THE PROCEDURES ESTABLISHED BY THE
COMMISSIONER.
  (B)  THE DELINQUENT PROPERTY OWNER SHALL BE PERMANENTLY INELIGIBLE FOR
ANY STAR CREDIT OR EXEMPTION THAT HAS BEEN DISALLOWED, EVEN IF THE PAST-
DUE PROPERTY TAXES ARE SUBSEQUENTLY PAID IN  FULL.  THE  PROPERTY  OWNER
SHALL  NOT  BE ELIGIBLE TO PARTICIPATE IN THE STAR PROGRAM AGAIN AS LONG
AS THE PROPERTY IS SUBJECT TO PAST-DUE PROPERTY TAXES.
  (C) UPON PAYMENT OF THE PAST-DUE PROPERTY TAXES IN FULL, THE  OFFICIAL
RECEIVING  SUCH  PAYMENT SHALL NOTIFY THE DEPARTMENT AT SUCH TIME AND IN
SUCH MANNER AS MAY BE PRESCRIBED BY THE COMMISSIONER.  THE  COMMISSIONER
SHALL THEN PROCEED AS FOLLOWS:

S. 7509                            31                            A. 9509

  (I) IF THE PROPERTY OWNER HAD PREVIOUSLY BEEN RECEIVING THE STAR CRED-
IT, THE COMMISSIONER SHALL ALLOW THE PROPERTY OWNER TO RESUME HIS OR HER
PARTICIPATION  IN  THE  STAR  CREDIT  PROGRAM ON A PROSPECTIVE BASIS, IF
OTHERWISE ELIGIBLE, EFFECTIVE WITH THE  FIRST  TAXABLE  YEAR  COMMENCING
AFTER SUCH PAYMENT.
  (II)  IF  THE  PROPERTY  OWNER  HAD PREVIOUSLY BEEN RECEIVING THE STAR
EXEMPTION, THE COMMISSIONER SHALL ALLOW THE PROPERTY  OWNER  TO  PARTIC-
IPATE  IN  THE  STAR CREDIT PROGRAM ON A PROSPECTIVE BASIS, IF OTHERWISE
ELIGIBLE, EFFECTIVE WITH THE FIRST TAXABLE YEAR  COMMENCING  AFTER  SUCH
PAYMENT.  THE  PROPERTY  OWNER  SHALL  NOT BE ALLOWED BACK INTO THE STAR
EXEMPTION PROGRAM.
  9. MISTAKE OF FACT. NOTWITHSTANDING ANY  OTHER  PROVISION  OF  LAW,  A
DISALLOWANCE OF A STAR CREDIT OR STAR EXEMPTION PURSUANT TO THIS SECTION
MAY ONLY BE CHALLENGED BEFORE THE DEPARTMENT ON THE GROUNDS OF A MISTAKE
OF  FACT AS DEFINED IN THIS SUBDIVISION. THE TAXPAYER WILL HAVE NO RIGHT
TO COMMENCE A COURT ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER  FORM
OF  LEGAL RECOURSE AGAINST AN ASSESSOR, COUNTY DIRECTOR OF REAL PROPERTY
TAX SERVICES OR OTHER LOCAL OFFICIAL REGARDING  SUCH  DISALLOWANCE.  FOR
THE PURPOSES OF THIS SUBDIVISION, "MISTAKE OF FACT" IS LIMITED TO CLAIMS
THAT:  (I) THE INDIVIDUAL NOTIFIED IS NOT THE TAXPAYER AT ISSUE; OR (II)
THE PAST-DUE PROPERTY TAXES WERE SATISFIED BEFORE THE DATE SPECIFIED  IN
THE  NOTICE DESCRIBED IN SUBDIVISION SIX OF THIS SECTION. HOWEVER, NOTH-
ING IN THIS SUBDIVISION IS INTENDED TO LIMIT  A  TAXPAYER  FROM  SEEKING
RELIEF  FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION SIX HUNDRED
FIFTY-FOUR OF THIS CHAPTER TO THE EXTENT THAT  HE  OR  SHE  IS  ELIGIBLE
PURSUANT  TO THAT SUBDIVISION OR ESTABLISHING TO THE DEPARTMENT THAT THE
ENFORCEMENT OF THE UNDERLYING PROPERTY TAXES  HAS  BEEN  STAYED  BY  THE
FILING  OF  A  PETITION  PURSUANT  TO THE BANKRUPTCY CODE OF 1978 (TITLE
ELEVEN OF THE UNITED STATES CODE).
  10. ASSESSORS. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRA-
RY, THE DEPARTMENT MAY DISCLOSE TO ASSESSORS  SUCH  INFORMATION  AS  THE
COMMISSIONER  DEEMS  NECESSARY  TO  ENSURE  THAT  THE STAR EXEMPTIONS OF
DELINQUENT PROPERTY OWNERS ARE DISALLOWED AS REQUIRED BY THIS SECTION.
  (B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, AN  ASSESSOR
SHALL  BE  AUTHORIZED  AND DIRECTED TO DENY A STAR EXEMPTION TO A DELIN-
QUENT PROPERTY OWNER UPON BEING DIRECTED BY THE DEPARTMENT TO DO SO.  IF
AN ASSESSOR SHOULD RECEIVE SUCH A DIRECTIVE AFTER THE APPLICABLE ASSESS-
MENT  ROLL HAS BEEN FILED, THE ASSESSOR OR OTHER OFFICIAL HAVING CUSTODY
AND CONTROL OF THAT ROLL SHALL BE AUTHORIZED AND DIRECTED TO REMOVE SUCH
EXEMPTION FROM SUCH ROLL PRIOR TO THE  LEVY  OF  SCHOOL  TAXES,  WITHOUT
REGARD  TO  THE  PROVISIONS  OF  TITLE THREE OF ARTICLE FIVE OF THE REAL
PROPERTY TAX LAW OR ANY COMPARABLE  LAWS  GOVERNING  THE  CORRECTION  OF
ADMINISTRATIVE ERRORS ON ASSESSMENT ROLLS AND TAX ROLLS.
  11.  RECOVERY  OF STAR BENEFITS IN CERTAIN CASES. THE COMMISSIONER MAY
ESTABLISH PROCEDURES TO BE FOLLOWED IN CASES  WHERE  A  STAR  CREDIT  OR
EXEMPTION  WAS  INADVERTENTLY  OR  ERRONEOUSLY  PROVIDED TO A DELINQUENT
PROPERTY OWNER WHO WAS SENT THE NOTICE REQUIRED BY  SUBDIVISION  SIX  OF
THIS SECTION, AND WHOSE PAST-DUE PROPERTY TAXES WERE NOT PAID IN FULL BY
THE DATE SPECIFIED IN THE NOTICE. SUCH PROCEDURES SHALL INCLUDE, BUT NOT
BE  LIMITED  TO,  (A)  APPLYING  THE  IMPROPERLY RECEIVED STAR CREDIT OR
EXEMPTION AS AN OFFSET AGAINST FUTURE  STAR  CREDITS  OR  AGAINST  OTHER
PERSONAL  INCOME TAX CREDITS OR PERSONAL INCOME TAX REFUNDS TO WHICH THE
DELINQUENT PROPERTY OWNER WOULD OTHERWISE BE ENTITLED, AND (B)  PURSUING
ANY  OF  THE  OTHER  REMEDIES  THAT  ARE AVAILABLE TO ENFORCE A PERSONAL
INCOME TAX DEBT UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER.
  § 2. This act shall take effect immediately.

S. 7509                            32                            A. 9509

                                 PART P

  Section  1.  Section  1530  of the real property tax law is amended by
adding a new subdivision 1-a to read as follows:
  1-A. IN THE EVENT THAT A  DIRECTOR  OF  REAL  PROPERTY  TAX  SERVICES,
APPOINTED  PURSUANT  TO  THE  PROVISIONS  OF  THIS SECTION, IS UNABLE TO
PERFORM THE DUTIES OF THE  OFFICE  OF  DIRECTOR  OF  REAL  PROPERTY  TAX
SERVICES  OR  THE OFFICE BECOMES VACANT, THE APPOINTING AUTHORITY MAY BY
RESOLUTION DESIGNATE OR APPOINT AN ACTING DIRECTOR OF REAL PROPERTY  TAX
SERVICES.  WHERE  AN  ACTING  DIRECTOR  OF REAL PROPERTY TAX SERVICES IS
DESIGNATED OR APPOINTED PURSUANT TO THIS SECTION, THE APPOINTING AUTHOR-
ITY SHALL NOTIFY THE COMMISSIONER WITHIN FIFTEEN  DAYS  OF  MAKING  SUCH
DESIGNATION    OR  APPOINTMENT. THE ACTING DIRECTOR OF REAL PROPERTY TAX
SERVICES SHALL FUNCTION AS DIRECTOR OF REAL PROPERTY TAX SERVICES  UNTIL
SUCH  TIME  AS  THE  DIRECTOR  OF  REAL PROPERTY TAX SERVICES IS ABLE TO
RESUME THE POSITION OR UNTIL A REPLACEMENT IS APPOINTED. IN THE EVENT AN
ACTING DIRECTOR OF REAL PROPERTY TAX SERVICES FUNCTIONS AS  DIRECTOR  OF
REAL  PROPERTY  TAX  SERVICES FOR MORE THAN SIX MONTHS, THEN SUCH ACTING
DIRECTOR OF REAL PROPERTY TAX SERVICES SHALL BE  REQUIRED  TO  MEET  THE
MINIMUM  QUALIFICATION  STANDARDS  REQUIRED  BY  THIS  TITLE FOR PERSONS
APPOINTED TO THE OFFICE OF DIRECTOR OF REAL PROPERTY TAX SERVICES.
  § 2. This act shall take effect immediately.

                                 PART Q

  Section 1. Paragraph i of subdivision 1-e of section 333 of  the  real
property  law,  as  amended  by section 5 of part X of chapter 56 of the
laws of 2010 and as further amended by subdivision (d) of section  1  of
part W of chapter 56 of the laws of 2010, is amended to read as follows:
  i.  A  recording  officer  shall  not  record or accept for record any
conveyance of real property affecting land  in  New  York  state  unless
accompanied  by  EITHER  (A)  a  transfer  report form prescribed by the
commissioner of taxation and finance [or in lieu  thereof,  confirmation
from  the  commissioner  that  the required data has been reported to it
pursuant to paragraph vii of this subdivision,] and the  fee  prescribed
pursuant  to  subdivision three of this section, OR (B) A RECEIPT ISSUED
BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SECTION FOURTEEN
HUNDRED TWENTY-THREE  OF  THE  TAX  LAW  THAT  CONFIRMS  THE  ELECTRONIC
SUBMISSION  OF A CONSOLIDATED REAL PROPERTY TRANSFER FORM AND PAYMENT OF
THE ASSOCIATED TAXES AND FEES.
  § 2. Paragraph v of subdivision 1-e of section 333 of the real proper-
ty law, as amended by section 5 of part X of chapter 56 of the  laws  of
2010  and as further amended by section 1 of part W of chapter 56 of the
laws of 2010, is amended to read as follows:
  v. (1) The provisions of this subdivision shall not operate to invali-
date any conveyance of real property where one  or  more  of  the  items
designated  as  subparagraphs  one through eight of paragraph ii of this
subdivision, have not  been  reported  or  which  has  been  erroneously
reported,  nor  affect  the  record  contrary  to the provisions of this
subdivision, nor impair any title founded on such conveyance or  record.
[Such]
  (2) SUBJECT TO THE PROVISIONS OF SECTION FOURTEEN HUNDRED TWENTY-THREE
OF THE TAX LAW, SUCH form shall contain an affirmation as to the accura-
cy of the contents made both by the transferor or transferors and by the
transferee  or transferees. Provided, however, that if the conveyance of
real property occurs as a result of a  taking  by  eminent  domain,  tax

S. 7509                            33                            A. 9509

foreclosure,  or  other  involuntary  proceeding such affirmation may be
made only by either the condemnor, tax district, or other party to  whom
the  property has been conveyed, or by that party's attorney. The affir-
mations  required by this paragraph shall be made in the form and manner
prescribed  by  the  commissioner,  provided  that  notwithstanding  any
provision  of  law to the contrary, affirmants may be allowed, but shall
not be required, to sign such affirmations electronically.
  § 3. Paragraphs vii and viii of subdivision 1-e of section 333 of  the
real property law are REPEALED.
  § 4. Subdivision 3 of section 333 of the real property law, as amended
by section 2 of part JJ of chapter 56 of the laws of 2009 and as further
amended  by  section  1  of part W of chapter 56 of the laws of 2010, is
amended to read as follows:
  3. The recording officer of every county and  the  city  of  New  York
shall  impose  a  fee  of two hundred fifty dollars, or in the case of a
transfer involving qualifying residential or farm property as defined by
paragraph iv of subdivision one-e of this section, a fee of one  hundred
twenty-five  dollars,  for  every  real property transfer reporting form
submitted for recording as required  under  subdivision  one-e  of  this
section.  In  the city of New York, the recording officer shall impose a
fee of one hundred dollars for each  real  property  transfer  tax  form
filed  in  accordance  with  chapter  twenty-one  of title eleven of the
administrative code of the city of New York, except where a real proper-
ty transfer reporting form is  also  submitted  for  recording  for  the
transfer  as  required  under  subdivision  one-e  of  this section. The
recording officer shall deduct nine dollars from such fee and remit  the
remainder  of  the revenue collected to the commissioner of taxation and
finance every month for deposit into the general fund. The  amount  duly
deducted  by the recording officer shall be retained by the county or by
the city of New York. PROVIDED,  HOWEVER,  THAT  THE  RECORDING  OFFICER
SHALL  NOT  IMPOSE  SUCH  A FEE WHERE THE CONVEYANCE IS ACCOMPANIED BY A
RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE  PURSUANT  TO
SECTION  FOURTEEN  HUNDRED TWENTY-THREE OF THE TAX LAW THAT CONFIRMS THE
ELECTRONIC SUBMISSION OF A CONSOLIDATED REAL PROPERTY TRANSFER FORM  AND
PAYMENT OF THE ASSOCIATED TAXES AND FEES.
  §  5.  Subdivision  (c)  of section 1407 of the tax law, as amended by
chapter 61 of the laws of 1989, is amended to read as follows:
  (c) Every recording officer designated to  act  as  such  agent  shall
retain,  from the real estate transfer tax which he OR SHE collects, the
sum of one dollar for  each  of  the  first  five  thousand  conveyances
accepted  for recording and for which he OR SHE has issued a documentary
stamp or metering machine stamp or upon which instrument  effecting  the
conveyance he OR SHE has noted payment of the tax or that no tax is due,
pursuant  to any other method for payment of the tax provided for in the
regulations of the commissioner of taxation  and  finance,  during  each
annual  period  commencing  on the first day of August and ending on the
next succeeding thirty-first day of July and seventy-five cents for each
conveyance in excess of five thousand accepted  for  recording  and  for
which he OR SHE has issued such a stamp or upon which instrument effect-
ing the conveyance he OR SHE has noted payment of the tax or that no tax
is  due,  pursuant to such other method, during such annual period. Such
fee shall be payable even though the stamp issued or such notation shows
that no tax is due. Such a fee paid to the register of the city  of  New
York  shall  belong  to  the  city  of New York and such a fee paid to a
recording officer of a county outside such city  shall  belong  to  such
officer's  county.  With  respect  to any other agents designated to act

S. 7509                            34                            A. 9509

pursuant to subdivision (a) of this section, the commissioner  of  taxa-
tion  and  finance  shall  have  the  power  to  provide,  at his OR HER
discretion, for payment of a fee to  such  agent,  in  such  manner  and
amount  and  subject to such limitations as he OR SHE may determine, but
any such fee for any annual period shall not be greater than the sum  of
one  dollar  for  each  of the first five thousand conveyances for which
such agent has issued a documentary stamp or metering machine  stamp  or
upon  which  instrument  effecting  the  conveyance  he OR SHE has noted
payment of the tax or that no tax is due, pursuant to any  other  method
for  payment  of  the tax provided for in the regulations of the commis-
sioner of taxation and finance, during such annual period  and  seventy-
five cents for each conveyance in excess of five thousand for which such
agent  has  issued  such  a stamp or upon which instrument effecting the
conveyance such agent has noted payment of the tax or  that  no  tax  is
due, pursuant to such other method, during such annual period. PROVIDED,
HOWEVER,  THAT  WHERE  THE  RECORDING OFFICER IS PROVIDED WITH A RECEIPT
ISSUED BY THE COMMISSIONER PURSUANT TO SECTION FOURTEEN HUNDRED  TWENTY-
THREE  OF  THIS  ARTICLE  THAT  CONFIRMS  THE ELECTRONIC SUBMISSION OF A
CONSOLIDATED REAL PROPERTY TRANSFER FORM AND PAYMENT OF  THE  ASSOCIATED
TAXES AND FEES, THE RECORDING OFFICER SHALL NEITHER COLLECT SUCH TAX NOR
IMPOSE SUCH FEE.
  § 6. Subdivision (b) of section 1409 of the tax law, as added by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  (b)  [The] SUBJECT TO THE PROVISIONS OF SECTION FOURTEEN HUNDRED TWEN-
TY-THREE OF ARTICLE, THE return shall be signed by both the grantor  and
the  grantee.  Where a conveyance has more than one grantor or more than
one grantee, the return shall be signed by  all  of  such  grantors  and
grantees. Where any or all of the grantors or any or all of the grantees
have failed to sign a return, it shall be accepted as a return if signed
by  any  one  of  the  grantors or by any one of the grantees. Provided,
however, those not signing the return  shall  not  be  relieved  of  any
liability  for the tax imposed by this article and the period of limita-
tions for assessment of tax or of additional tax shall not apply to  any
such party.
  § 7. Subdivision (b) of section 1410 of the tax law, as added by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  (b)  A  recording  officer  shall not record an instrument effecting a
conveyance unless EITHER (I) the return  required  by  section  fourteen
hundred nine of this article has been filed and the real estate transfer
tax  due,  if  any, shall have been paid as provided in this section, OR
(II) THE INSTRUMENT IS ACCOMPANIED BY A RECEIPT ISSUED  BY  THE  COMMIS-
SIONER PURSUANT TO SECTION FOURTEEN HUNDRED TWENTY-THREE OF THIS ARTICLE
THAT  CONFIRMS THE ELECTRONIC SUBMISSION OF A CONSOLIDATED REAL PROPERTY
TRANSFER FORM AND PAYMENT OF THE ASSOCIATED TAXES AND FEES.
  § 8. The tax law is amended by adding a new section 1423  to  read  as
follows:
  §  1423.  MODERNIZATION  OF  REAL  PROPERTY  TRANSFER  REPORTING.  (A)
NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  THE  COMMISSIONER
IS HEREBY AUTHORIZED TO IMPLEMENT A SYSTEM FOR THE ELECTRONIC COLLECTION
OF DATA RELATING TO TRANSFERS OF REAL PROPERTY. IN CONNECTION THEREWITH,
THE  COMMISSIONER MAY COMBINE THE TWO FORMS REFERRED TO IN PARAGRAPH (I)
OF THIS SUBDIVISION INTO A CONSOLIDATED REAL PROPERTY TRANSFER  FORM  TO
BE FILED WITH HIM OR HER ELECTRONICALLY; PROVIDED:
  (I) THE TWO FORMS THAT MAY BE SO COMBINED ARE THE REAL ESTATE TRANSFER
TAX  RETURN  REQUIRED  BY SECTION FOURTEEN HUNDRED NINE OF THIS ARTICLE,
AND THE REAL PROPERTY TRANSFER REPORT REQUIRED BY SUBDIVISION  ONE-E  OF

S. 7509                            35                            A. 9509

SECTION  THREE  HUNDRED  THIRTY-THREE OF THE REAL PROPERTY LAW. HOWEVER,
THE COMMISSIONER SHALL CONTINUE TO MAINTAIN BOTH SUCH  RETURN  AND  SUCH
REPORT  AS  SEPARATE  FORMS,  SO  THAT A PARTY WHO PREFERS NOT TO FILE A
CONSOLIDATED REAL PROPERTY TRANSFER FORM WITH THE COMMISSIONER ELECTRON-
ICALLY  SHALL HAVE THE OPTION OF FILING BOTH SUCH RETURN AND SUCH REPORT
WITH THE RECORDING OFFICER, AS  OTHERWISE  PROVIDED  BY  LAW.  UNDER  NO
CIRCUMSTANCES  SHALL A CONSOLIDATED REAL PROPERTY TRANSFER FORM BE FILED
WITH, OR ACCEPTED BY, THE RECORDING OFFICER.
  (II) NOTWITHSTANDING THE PROVISIONS OF SECTION FOURTEEN HUNDRED  EIGH-
TEEN  OF  THIS ARTICLE, ANY INFORMATION APPEARING ON A CONSOLIDATED REAL
PROPERTY TRANSFER FORM THAT IS REQUIRED TO BE INCLUDED ON THE REAL PROP-
ERTY TRANSFER REPORT REQUIRED BY  SUBDIVISION  ONE-E  OF  SECTION  THREE
HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW SHALL BE SUBJECT TO PUBLIC
DISCLOSURE.
  (III)  WHEN  A  CONSOLIDATED  REAL PROPERTY TRANSFER FORM IS ELECTRON-
ICALLY SUBMITTED TO THE DEPARTMENT BY EITHER THE GRANTOR OR GRANTEE, THE
ACT OF SUBMITTING SUCH FORM SHALL BE DEEMED TO BE  THE  SIGNING  OF  THE
RETURN  AS  REQUIRED  BY  PARAGRAPH (V) OF SUBDIVISION ONE-E OF THE REAL
PROPERTY LAW OR SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED NINE OF THIS
ARTICLE, AND THE REQUIREMENT THAT ALL THE GRANTORS  AND  GRANTEES  SHALL
SIGN  THE  RETURN  SHALL  NOT APPLY. HOWEVER, THE FACT THAT A GRANTOR OR
GRANTEE HAS NOT ELECTRONICALLY SUBMITTED THE FORM SHALL NOT RELIEVE THAT
GRANTOR OR GRANTEE OF ANY LIABILITY FOR THE TAX IMPOSED BY THIS ARTICLE.
  (B) WHEN A CONSOLIDATED REAL PROPERTY TRANSFER FORM IS FILED WITH  THE
COMMISSIONER  ELECTRONICALLY  PURSUANT  TO THIS SECTION, THE REAL ESTATE
TRANSFER TAX IMPOSED UNDER THIS ARTICLE, AND THE FEE THAT  WOULD  OTHER-
WISE  BE RETAINED BY THE RECORDING OFFICER PURSUANT TO SUBDIVISION THREE
OF SECTION THREE HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW, SHALL BE
PAID TO THE COMMISSIONER THEREWITH. THE  COMMISSIONER  SHALL  RETAIN  ON
BEHALF  OF  THE  RECORDING  OFFICER  THE  PORTION OF SUCH TAX THAT WOULD
OTHERWISE HAVE BEEN RETAINED BY THE RECORDING OFFICER PURSUANT TO SUBDI-
VISION (C) OF SECTION FOURTEEN HUNDRED SEVEN OF THIS  ARTICLE,  AND  THE
PORTION  OF  SUCH  FEE  THAT  WOULD  OTHERWISE HAVE BEEN RETAINED BY THE
RECORDING OFFICER PURSUANT TO SUBDIVISION THREE OF SECTION THREE HUNDRED
THIRTY-THREE OF THE REAL PROPERTY LAW. THE MONEYS  SO  RETAINED  BY  THE
COMMISSIONER ON BEHALF OF THE RECORDING OFFICER, HEREINAFTER REFERRED TO
AS  THE  RECORDING  OFFICER'S  FEES,  SHALL BE DEPOSITED DAILY WITH SUCH
RESPONSIBLE BANKS, BANKING HOUSES, OR TRUST COMPANIES AS MAY  BE  DESIG-
NATED  BY  THE  STATE  COMPTROLLER.  OF  THE RECORDING OFFICER'S FEES SO
DEPOSITED, THE COMPTROLLER SHALL RETAIN IN THE COMPTROLLER'S HANDS  SUCH
AMOUNT  AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS OR
REIMBURSEMENTS OF SUCH FEES  COLLECTED  OR  RECEIVED  PURSUANT  TO  THIS
SECTION,  OUT  OF  WHICH  THE  COMPTROLLER  SHALL  PAY  ANY  REFUNDS  OR
REIMBURSEMENTS OF SUCH FEES TO WHICH PERSONS SHALL BE ENTITLED UNDER THE
PROVISIONS OF THIS SECTION. THE COMPTROLLER, AFTER RESERVING SUCH REFUND
AND REIMBURSEMENT FUND SHALL, ON OR  BEFORE  THE  TWELFTH  DAY  OF  EACH
MONTH,  PAY TO THE APPROPRIATE RECORDING OFFICERS AN AMOUNT EQUAL TO THE
RECORDING OFFICER'S FEES RESERVED ON THEIR  BEHALF.  PROVIDED,  HOWEVER,
THAT  THE  COMMISSIONER  IS  AUTHORIZED  TO REQUEST THAT THE COMPTROLLER
REFRAIN FROM MAKING SUCH A PAYMENT OF SUCH FEES TO A  RECORDING  OFFICER
UNTIL THE COMMISSIONER HAS CERTIFIED TO THE COMPTROLLER THAT THE RECORD-
ING  OFFICER  HAS  SUPPLIED  THE  COMMISSIONER  WITH  THE LIBER AND PAGE
NUMBERS OF THE RECORDED INSTRUMENTS THAT GAVE RISE TO SUCH FEES.
  (C) THE SYSTEM FOR THE  ELECTRONIC  SUBMISSION  OF  CONSOLIDATED  REAL
PROPERTY  TRANSFER  FORMS  SHALL BE DESIGNED SO THAT UPON THE SUCCESSFUL
ELECTRONIC FILING OF SUCH A FORM AND THE PAYMENT OF THE ASSOCIATED TAXES

S. 7509                            36                            A. 9509

AND FEES, THE PARTY SUBMITTING THE SAME SHALL BE PROVIDED WITH AN  ELEC-
TRONIC  RECEIPT  IN  A FORM PRESCRIBED BY THE COMMISSIONER THAT CONFIRMS
SUCH FILING AND PAYMENT. SUCH PARTY MAY FILE  A  PRINTED  COPY  OF  SUCH
RECEIPT  WITH THE RECORDING OFFICER WHEN OFFERING THE ASSOCIATED INSTRU-
MENT FOR RECORDING, IN LIEU OF SUBMITTING TO THE RECORDING  OFFICER  THE
RETURN,  REPORT,  TAX  AND  FEE  THAT WOULD OTHERWISE HAVE BEEN REQUIRED
UNDER THIS ARTICLE AND SUBDIVISIONS ONE-E AND  THREE  OF  SECTION  THREE
HUNDRED  THIRTY-THREE  OF  THE  REAL PROPERTY LAW. THE RECORDING OFFICER
SHALL RETAIN SUCH RECEIPT FOR A MINIMUM OF THREE YEARS, UNLESS OTHERWISE
DIRECTED BY THE COMMISSIONER, AND SHALL PROVIDE A COPY  THEREOF  TO  THE
COMMISSIONER FOR INSPECTION UPON HIS OR HER REQUEST.
  (D) UPON RECORDING THE INSTRUMENT TO WHICH THE CONSOLIDATED REAL PROP-
ERTY  TRANSFER  FORM  PERTAINS,  THE RECORDING OFFICER SHALL PROVIDE THE
COMMISSIONER WITH THE LIBER AND PAGE THEREOF AT SUCH TIME  AND  IN  SUCH
MANNER AS THE COMMISSIONER SHALL PRESCRIBE.
  (E)  THE  PROVISIONS  OF THIS SECTION SHALL NOT BE APPLICABLE WITHIN A
CITY OR COUNTY THAT HAS IMPLEMENTED ITS OWN ELECTRONIC  SYSTEM  FOR  THE
RECORDING  OF  DEEDS, THE FILING OF THE REAL ESTATE TRANSFER TAX RETURNS
AND THE REAL PROPERTY TRANSFER REPORTS PRESCRIBED BY  THE  COMMISSIONER,
AND  THE  PAYMENT  OF THE ASSOCIATED TAXES AND FEES, UNLESS SUCH CITY OR
COUNTY SHOULD AGREE TO ALLOW THE SYSTEM IMPLEMENTED BY THE  COMMISSIONER
PURSUANT TO THIS SECTION TO BE USED THEREIN.
  § 9. This act shall take effect immediately.

                                 PART R

  Section  1.  Section 19 of the public lands law, as amended by chapter
449 of the laws of 2016, is amended to read as follows:
  § 19. Taxes and assessments for local improvements on state  lands.  A
person,  body or board authorized to assess lands for local improvements
or purposes, shall submit to the comptroller of the state an invoice  of
assessment  on state lands, showing the purpose for which the assessment
is made, the state lands assessed and the amounts  for  which  they  are
assessed,  and  referring to the law authorizing the assessment. No fee,
interest, penalty or expense shall be added to or accrue on any  assess-
ment  against  state  lands,  nor shall such lands be sold therefor; but
such assessments shall,  if  confirmed  and  uncontested,  be  paid  and
discharged  out  of any moneys appropriated therefor. All sales of state
lands for unpaid taxes or assessments for local improvements or purposes
are void. All taxes and assessments legally made on state lands, and all
legal rents or charges thereon, shall be audited by the comptroller  and
paid  out  of  the  treasury.  On  or before January fifteenth the comp-
troller, in consultation with the [board of real property tax  services]
DEPARTMENT  OF  TAXATION AND FINANCE and other agencies as may be appro-
priate, shall submit to the  governor  and  the  legislature  an  annual
accounting of taxes and assessments paid pursuant to this section during
the  preceding  and current fiscal years. Such accounting shall include,
but not be limited to the number, type and amount of such  payments,  as
well  as  an estimate of payments to be made during the remainder of the
current fiscal year  and  during  the  following  fiscal  year.  If  any
provision  of  this  section  conflict  with  any provision of any other
general, special or local law, this section shall prevail; and no  other
general,  special  or  local  law  shall  be  deemed to repeal, alter or
abridge any provision of this section, unless this section or this arti-
cle or this chapter be expressly and specifically referred  to  therein.
This section shall extend, in its operation and effect, so as to include

S. 7509                            37                            A. 9509

all actions and proceedings, whether judicial or administrative, hereto-
fore commenced under any general, special or local law and now pending.
  § 2. Subdivision 3 of section 19-b of the public lands law, as amended
by chapter 385 of the laws of 1994, is amended to read as follows:
  3. Such state aid shall be payable upon application to the state comp-
troller by the chief fiscal officer of the taxing authority which quali-
fies  for aid pursuant to this section. The application shall be made on
a form prescribed by such comptroller and shall contain such information
as such comptroller shall require. On or before  January  fifteenth  the
comptroller,  in consultation with the [board of real property services]
DEPARTMENT OF TAXATION AND FINANCE and other agencies as may  be  appro-
priate,  shall  submit  to  the  governor  and the legislature an annual
accounting of state aid paid pursuant to this section during the preced-
ing and current fiscal years. Such accounting shall include, but not  be
limited  to  the number, type and amount of such payments, as well as an
estimate of payments to be made during  the  remainder  of  the  current
fiscal year and during the following fiscal year.
  § 3. Subdivision 6 of section 291-i of the real property law, as added
by chapter 549 of the laws of 2011, is amended to read as follows:
  6. Nothing contained in this section shall be construed to authorize a
recording  officer  to  furnish digitized paper documents of the reports
required by section five hundred seventy-four of the real  property  tax
law.  Such reports shall be furnished as paper documents with the requi-
site notations thereon, except where the [state board of  real  property
services]  DEPARTMENT  OF TAXATION AND FINANCE has agreed to accept data
submissions in lieu thereof or has provided for  the  electronic  trans-
mission of such data pursuant to law.
  §  4.  Subdivision  18  of section 102 of the real property tax law is
REPEALED.
  § 5. The article heading of article 2 of the real property tax law  is
amended to read as follows:
           [STATE BOARD] COMMISSIONER OF TAXATION AND FINANCE
  § 6. Sections 200 and 200-A of the real property tax law are REPEALED.
  § 7. Subdivisions 1 and 7 of section 201 of the real property tax law,
as  added  by section 5 of part W of chapter 56 of the laws of 2010, are
amended to read as follows:
  1. On and after the effective date of  this  section,  the  functions,
powers  and  duties  of  the  state  board  of real property services as
formerly established by this  chapter  shall  be  considered  functions,
powers  and  duties of the commissioner of taxation and finance[, except
to the extent provided by section two hundred-a of this article].
  7. (a) All rules, regulations, acts, orders, determinations, and deci-
sions of the state board of real property services or the office of real
property services, in force at the time of such transfer and assumption,
shall continue in full force and effect  as  rules,  regulations,  acts,
orders,  determinations and decisions of the department until duly modi-
fied or abrogated by the commissioner or the department.
  (b) All acts, orders, determinations, and decisions of the state board
of real  property  services  pertaining  to  the  functions  and  powers
provided  in FORMER section two hundred-a of this article shall continue
in full force and effect as acts, orders, determinations  and  decisions
of the [state board of real property tax services] COMMISSIONER.
  § 8. Section 203 of the real property tax law, as amended by section 7
of  part  W  of  chapter  56  of the laws of 2010, is amended to read as
follows:

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  § 203. Office of real property tax services. There is  hereby  created
within the department of taxation and finance an office of real property
tax  services. The head of the office shall be a deputy commissioner for
real property tax services[, who shall also be the executive officer for
and  secretary  of  the  state board of real property tax services]. The
deputy commissioner for real property tax services shall be appointed by
the governor. He or  she  shall  exercise  such  powers  and  duties  in
relation  to real property tax administration as may be delegated to him
or her by the commissioner, shall report directly to the commissioner on
the activities of the office, and shall hold office at the  pleasure  of
the commissioner. The commissioner may appoint such officers, employees,
agents,  consultants and special committees as he or she may deem neces-
sary to carry out the provisions of this chapter,  and  shall  prescribe
their duties.
  §  9.  Sections  204,  206  and  208  of the real property tax law are
REPEALED.
  § 10. Clause (D) of subparagraph (iv) of paragraph (b) of  subdivision
4  of  section 425 of the real property tax law, as amended by section 1
of part PP of chapter 59 of the laws of 2019,  is  amended  to  read  as
follows:
  (D)  Notwithstanding  any provision of law to the contrary, neither an
assessor nor a board of assessment review has the authority to  consider
an  objection  to  the  replacement or removal or denial of an exemption
pursuant to this subdivision, nor may such an action be  reviewed  in  a
proceeding  to  review  an  assessment pursuant to title one or one-A of
article seven of this chapter. Such an action  may  only  be  challenged
before  the  department.  If a taxpayer is dissatisfied with the depart-
ment's final determination, the [taxpayer may appeal that  determination
to the state board of real property tax services in a form and manner to
be  prescribed  by  the  commissioner. Such appeal shall be filed within
forty-five days from the issuance of  the  department's  final  determi-
nation.  If  dissatisfied  with  the  state  board's determination, the]
taxpayer may seek judicial review thereof pursuant to  article  seventy-
eight  of the civil practice law and rules. The taxpayer shall otherwise
have no right to challenge such final determination in a  court  action,
administrative  proceeding  or  any other form of legal recourse against
the commissioner, the department, [the state board of real property  tax
services,] the assessor or other person having custody or control of the
assessment roll or tax roll regarding such action.
  § 11. Paragraph (d) of subdivision 14 of section 425 of the real prop-
erty  tax law, as added by section 1 of part J of chapter 57 of the laws
of 2013, is amended to read as follows:
  (d) Notwithstanding the provisions of paragraph (b) of subdivision six
of this section, neither an assessor nor a board  of  assessment  review
has  the  authority to consider an objection to the removal or denial of
an exemption pursuant to this subdivision, nor may  such  an  action  be
reviewed  in  a proceeding to review an assessment pursuant to title one
or one-A of article seven of this chapter. Such an action  may  only  be
challenged  before the department of taxation and finance. If a taxpayer
is dissatisfied with the department's final determination, [the taxpayer
may appeal that determination to the state board of  real  property  tax
services in a form and manner to be prescribed by the commissioner. Such
appeal  shall  be  filed within forty-five days from the issuance of the
department's final 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

S. 7509                            39                            A. 9509

taxpayer shall otherwise have no right to challenge such final  determi-
nation in a court action, administrative proceeding or any other form of
legal  recourse against the commissioner, the department of taxation and
finance,  [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.
  § 12. Subparagraph (iii) of paragraph (b) of subdivision 15 of section
425  of the real property tax law, as amended by section 1 of part JJ of
chapter 60 of the laws of 2016, is amended to read as follows:
  (iii) notwithstanding the provisions of paragraph (b)  of  subdivision
six  of  this  section,  neither  an  assessor nor a board of assessment
review has the authority to consider an objection to the  recoupment  of
an  exemption  pursuant  to  this subdivision, nor may such an action be
reviewed in a proceeding to review an assessment pursuant to  title  one
or  one-A  of  article seven of this chapter. Such an action may only be
challenged before the department. If an owner is dissatisfied  with  the
department's  final  determination,  [the owner may appeal that determi-
nation to the board in a form and manner to be prescribed by the commis-
sioner. Such appeal shall be filed within forty-five days from the issu-
ance of the department's final determination. If dissatisfied  with  the
board's  determination,]  the  owner  may  seek  judicial review thereof
pursuant to article seventy-eight of the civil practice law  and  rules.
The owner shall otherwise have no right to challenge such final determi-
nation  in  a court action, administrative proceeding, including but not
limited to an administrative proceeding pursuant to article forty of the
tax law, or any other form of legal recourse against  the  commissioner,
the  department,  [the  board,] the assessor, or any other person, state
agency, or local government.
  § 13. Section 489-o of the  real  property  tax  law,  as  amended  by
section  13  of  part W of chapter 56 of the laws of 2010, is amended to
read as follows:
  § 489-o. Final determination  of  railroad  ceiling;  certificate.  1.
After  the hearing provided for in section four hundred eighty-nine-n of
this title, the [state board of real property tax services] COMMISSIONER
shall finally determine the railroad ceiling for the railroad real prop-
erty of each railroad company situated in each assessing unit.  Whenever
upon  complaint  the  [state  board] COMMISSIONER shall revise the local
reproduction cost of a railroad company in an assessing unit, [it] HE OR
SHE shall revise the railroad ceiling therefor to reflect such revision,
but [it] HE OR SHE shall not, on account of such  revision,  modify  any
other determination with respect to the railroad ceilings for such rail-
road  company for such year.  Notwithstanding the fact that no complaint
shall have been filed with respect to a  tentative  determination  of  a
railroad  ceiling,  the  [state board] COMMISSIONER shall give effect to
any special equalization rate established, pursuant to  subdivision  two
of  section  four hundred eighty-nine-l of this title prior to the final
determination of the railroad ceiling.
  2. Not later than ten days before the last date prescribed by law  for
the  levy  of taxes, the [state board] COMMISSIONER shall file a certif-
icate setting forth each railroad ceiling as finally determined with the
assessor of the appropriate assessing unit or the town or county  asses-
sor  who  prepares  a  copy of the applicable part of the town or county
assessment roll for village tax  purposes  as  provided  in  subdivision
three  of  section fourteen hundred two of this chapter, and at the same
time shall transmit to each railroad company for which such ceiling  has
been determined a duplicate copy of such certificate.

S. 7509                            40                            A. 9509

  3.  Any final determination of a railroad ceiling by the [state board]
COMMISSIONER pursuant to  subdivision  one  of  this  section  shall  be
subject  to  judicial review in a proceeding under article seventy-eight
of the civil practice law and rules.
  § 14. Section 489-ll of the real property tax law, as added by chapter
920  of the laws of 1977, subdivision 1 as amended by section 14 of part
W of chapter 56 of the laws of 2010, subdivision 2 as amended by chapter
735 of the laws of 1983, and subdivision 3 as added by  chapter  841  of
the laws of 1986, is amended to read as follows:
  §  489-ll.  Final  determination  of railroad ceiling; certificate. 1.
After the hearing provided for in section four hundred eighty-nine-kk of
this title, the [state board of real property tax services] COMMISSIONER
shall finally determine the railroad ceiling for the railroad real prop-
erty of each railroad company situated in each assessing unit.  Whenever
upon  complaint  the  [state  board] COMMISSIONER shall revise the local
reproduction cost of a railroad company in an assessing unit, [it] HE OR
SHE shall revise  the  appropriate  railroad  ceiling  to  reflect  such
revision,  but  [it]  HE  OR SHE shall not, on account of such revision,
modify any other determination with respect to the railroad ceilings for
such railroad company for such year.  Notwithstanding the fact  that  no
complaint  shall  have  been  filed with respect to a tentative determi-
nation of a railroad ceiling, the [state board] COMMISSIONER shall  give
effect to any special equalization rate established pursuant to subdivi-
sion  two  of section four hundred eighty-nine-jj of this title prior to
the final determination of the railroad ceiling.
  2. Not later than ten days before the last date prescribed by law  for
the  levy  of taxes, the [state board] COMMISSIONER shall file a certif-
icate setting forth each railroad ceiling as finally determined with the
assessor of the appropriate assessing unit or the town or county  asses-
sor  who  prepares  a  copy of the applicable part of the town or county
assessment roll for village tax  purposes  as  provided  in  subdivision
three  of  section fourteen hundred two of this chapter, and at the same
time shall transmit to each railroad company for which such ceiling  has
been determined a duplicate copy of such certificate.
  3.  Any final determination of a railroad ceiling by the [state board]
COMMISSIONER pursuant to  subdivision  one  of  this  section  shall  be
subject  to  judicial review in a proceeding under article seventy-eight
of the civil practice law and rules.
  § 15. Section 547 of the real property tax law, as amended by  chapter
385 of the laws of 1994, is amended to read as follows:
  §  547. Annual report. On or before January fifteenth the comptroller,
in consultation with the [board of real property services]  COMMISSIONER
and  other  agencies as may be appropriate, shall submit to the governor
and the legislature an annual accounting of state aid, taxes and assess-
ments paid by the state pursuant to this article  during  the  preceding
and  current  fiscal  years.  Such  accounting shall include, but not be
limited to, the number, type and amount of claims so paid, as well as an
estimate of claims to be paid during the remainder of the current fiscal
year and during the following fiscal year.
  § 16. Section 614 of the real property tax law, as amended by  section
15  of  part  W of chapter 56 of the laws of 2010, is amended to read as
follows:
  § 614. Determination of final assessment of special franchises.  After
receiving  the  [commissioner's]  HEARING OFFICER'S report regarding any
complaint filed pursuant to section six hundred twelve of this  article,

S. 7509                            41                            A. 9509

the  [state  board  of  real  property  tax services] COMMISSIONER shall
determine the final assessment of each special franchise.
  §  17. Section 816 of the real property tax law, as amended by chapter
36 of the laws of 1980 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:
  § 816. Review by [state board of real property tax  services]  COMMIS-
SIONER.  The  [state  board  of real property tax services] COMMISSIONER
shall have power on complaint to review the  equalization  made  by  any
county  equalization  agency. Such review shall be brought by filing the
complaint with the [state board of real property tax  services]  COMMIS-
SIONER  at any time within thirty days from the date on which notice was
given pursuant to section eight hundred four of this article. Notice  of
the  hearing  on  such review shall be given by the [state board of real
property tax services] COMMISSIONER to the clerk of the county  legisla-
tive  body,  whose duty it shall be to transmit a copy of such notice to
each member of the county legislative body and to  the  chief  executive
officer of each city and town in the county.
  §  18. Section 818 of the real property tax law, as amended by chapter
615 of the laws of 1972, subdivision 3 as added by chapter  556  of  the
laws of 2002, and subdivisions 1 and 3 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:
  §  818. Determination on review. 1. On review of the equalization made
by the county equalization agency, the [state board of real property tax
services] COMMISSIONER shall review such equalization and  shall  deter-
mine  whether  such  equalization is fair and equitable and if not, what
corrections should be made.  The  [state  board  of  real  property  tax
services] COMMISSIONER shall certify its determination in writing to the
county  legislative body and to the chief executive officer of each city
or town complaining, if any.
  2. Such determination shall have the  same  force  and  effect  as  an
original  equalization made by the county equalization agency within the
time prescribed by law.
  3. If the [state board of real  property  tax  services]  COMMISSIONER
determines that the equalization made by a county equalization agency in
a  county  containing  a  designated  large  property,  as  that term is
described in section eight hundred forty-seven of this article,  is  not
fair  and  equitable,  [it]  HE  OR  SHE  shall issue an order directing
correction of such equalization, which may include the apportionment and
levy of taxes in the manner provided in section eight  hundred  five  of
this title.
  § 19. Section 1210 of the real property tax law, as amended by section
17  of  part  W of chapter 56 of the laws of 2010, is amended to read as
follows:
  § 1210. Establishment of final state equalization rates, class  ratios
and class equalization rates. After receiving the [commissioner's] HEAR-
ING  OFFICER'S  report regarding any complaint filed pursuant to section
twelve hundred eight of this title, the [state board  of  real  property
tax  services] COMMISSIONER shall establish the final state equalization
rate, class ratios, and class equalization rates, if required, for  each
city,  town, village, special assessing unit, or approved assessing unit
or eligible non-assessing unit village which has adopted the  provisions
of section nineteen hundred three of this chapter.

S. 7509                            42                            A. 9509

  § 20. Section 1218 of the real property tax law, as amended by section
18  of  part  W of chapter 56 of the laws of 2010, is amended to read as
follows:
  § 1218. Review of final determinations of [state board of real proper-
ty  tax services] THE COMMISSIONER relating to state equalization rates.
A final determination of the [state board of real property tax services]
COMMISSIONER relating to state equalization rates  may  be  reviewed  by
commencing  an  action in the appellate division of the supreme court in
the manner provided by article seventy-eight of the civil  practice  law
and  rules  upon  application  of  the county, city, town or village for
which the rate or rates were established. The standard of review in such
a proceeding shall be as specified in subdivision four of section seven-
ty-eight hundred three of the civil practice law and rules.  Whenever  a
final  order  is  issued  in such a proceeding directing a revised state
equalization rate, any county, village or school district that used  the
former  rate  in  the  apportionment of taxes must, upon receipt of such
final order, recalculate the levy that used such former rate and  credit
or debit as appropriate its constituent municipalities in its next levy.
Any special franchise assessments that were established using the former
rate  must,  upon  receipt of such final order, be revised by the [state
board] COMMISSIONER in accordance with the new rate, and, if taxes  have
already  been  levied  upon such assessments, the affected special fran-
chise owners shall either automatically receive a refund if there  is  a
decrease  or  be  taxed  on  an  increase in the next levy in the manner
provided for omitted parcels in title three  of  article  five  of  this
chapter.
  §  21.  Section 1263 of the real property tax law, as added by chapter
280 of the laws of 1978 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:
  § 1263. Notice of determination of tentative ratios and opportunity to
be heard. Not later than ninety days prior to the ensuing fiscal year of
the city  school  district,  the  [state  board  of  real  property  tax
services] COMMISSIONER shall provide written notice of the determination
of  tentative  ratios pursuant to this article to the board of education
of each city school district. The notice shall set forth  the  tentative
ratios,  identify  the assessment rolls for which the ratios were deter-
mined and shall specify the time and place where  the  [state  board  of
real  property tax services] COMMISSIONER or a duly authorized represen-
tative thereof will meet to hear objections presented by the appropriate
board of education concerning such ratios.  The notice must be served at
least ten days before the date specified for the hearing. After  hearing
any  objections, the [state board of real property tax services] COMMIS-
SIONER shall determine final ratios for the appropriate assessment rolls
in accordance with the provisions of this article. The board  of  educa-
tion  is  hereby  authorized  and  empowered  to  waive the hearing with
respect to such tentative ratios.
  § 22. This act shall take effect October 1, 2020.

                                 PART S

  Section 1. Paragraph (f) of subdivision 3 of section 425 of  the  real
property tax law is REPEALED.
  § 2. Section 171-y of the tax law is REPEALED.
  § 3. This act shall take effect immediately.

S. 7509                            43                            A. 9509

                                 PART T

  Section  1.  Subdivision  3  of section 489-c of the real property tax
law, as amended by chapter 733 of the laws of 2004, is amended  to  read
as follows:
  3. Railroad real property shall be assessed according to its condition
and  ownership  as of the [first] THIRTY-FIRST day of [July] DECEMBER of
the year preceding the year in which the assessment roll on  which  such
assessment  will  be  entered is filed in the office of the city or town
clerk, except that it shall be assessed according to its  condition  and
ownership  as  of the [first] THIRTY-FIRST day of [July] DECEMBER 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 3 of section 489-cc of the real property tax law, as
amended by chapter 733 of the laws  of  2004,  is  amended  to  read  as
follows:
  3. Railroad real property shall be assessed according to its condition
and  ownership  as of the [first] THIRTY-FIRST day of [July] DECEMBER of
the year preceding the year in which the assessment roll on  which  such
assessment  will  be  entered is filed in the office of the city or town
clerk, except that it shall be assessed according to its  condition  and
ownership  as  of the [first] THIRTY-FIRST day of [July] DECEMBER 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.
  §  3. Section 499-nnnn of the real property tax law, as added by chap-
ter 475 of the laws of 2013, is amended to read as follows:
  § 499-nnnn. Equalization rate. In determining assessment ceilings, the
commissioner shall apply the final  state  equalization  rate  [for  the
assessment  roll of the local assessing jurisdiction for which the ceil-
ing is established. If that final rate is not available, the commission-
er shall apply the most recent final state  equalization  rate  for  the
local assessing jurisdiction, except that if a special equalization rate
has  been established as provided in title two of article twelve of this
chapter, such rate shall be applied. In the case of a special  assessing
unit  as  defined  in  section eighteen hundred one of this chapter, the
equalization rate to be applied shall be the applicable class  equaliza-
tion  rate]  USED FOR THE LOCAL ASSESSING JURISDICTION ON THE ASSESSMENT
ROLL FOR THE YEAR IMMEDIATELY PRECEDING THE YEAR IN WHICH THE ASSESSMENT
CEILING IS BEING ESTABLISHED, EXCEPT THAT (1) IF A SPECIAL  EQUALIZATION
RATE  WAS  USED ON SUCH ASSESSMENT ROLL, SUCH RATE SHALL BE APPLIED, AND
(2) IN THE CASE OF A SPECIAL ASSESSING UNIT AS DEFINED IN SECTION  EIGH-
TEEN  HUNDRED  ONE  OF THIS CHAPTER, THE EQUALIZATION RATE TO BE APPLIED
SHALL BE THE APPLICABLE CLASS EQUALIZATION RATE USED ON SUCH  ASSESSMENT
ROLL.
  §  4.  Subdivision 2 of section 499-pppp of the real property tax law,
as added by chapter 475 of the laws of  2013,  is  amended  to  read  as
follows:
  2.  Notwithstanding  that  a  complaint  may  not have been filed with
respect to a tentative  determination  of  an  assessment  ceiling,  the
commissioner  shall  give effect to any special equalization rate estab-
lished pursuant to section twelve hundred twenty-four  of  this  chapter
[or  the final state equalization rate for the assessment roll for which
the ceiling is established as provided in section four  hundred  ninety-
nine-nnnn  of  this title] prior to the date for the final determination
of the assessment ceiling.

S. 7509                            44                            A. 9509

  § 5. Section 3 of chapter 475 of the laws of 2013  amending  the  real
property tax law relating to assessment ceilings for local public utili-
ty mass real property is REPEALED.
  §  6.  This act shall take effect immediately; provided, however, that
the amendments to title 5 of article 4 of the real property tax law made
by sections three and four of this act shall not affect  the  repeal  of
such title and shall be deemed to be repealed therewith.

                                 PART U

  Section  1. Clause (A) of subparagraph (iv) of paragraph (b) of subdi-
vision 4 of section 425 of the real property  tax  law,  as  amended  by
section  1  of  part PP of chapter 59 of the laws of 2019, is amended to
read as follows:
  (A) Effective with applications for the enhanced  exemption  on  final
assessment  rolls to be completed in two thousand nineteen, the applica-
tion form shall indicate that all owners of the property and any owners'
spouses residing on the premises  must  have  their  income  eligibility
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.  THE
COMMISSIONER MAY, IN HIS OR HER DISCRETION, EXTEND THE ENROLLMENT PERIOD
OF  THE STAR INCOME VERIFICATION PROGRAM FOR PROPERTY OWNERS WHOSE PROP-
ERTY RECEIVED THE  ENHANCED  EXEMPTION  ON  THE  FINAL  ASSESSMENT  ROLL
COMPLETED  IN  TWO  THOUSAND EIGHTEEN BUT WHO FAILED TO ENROLL IN SUFFI-
CIENT TIME TO HAVE THE EXEMPTION CONTINUED ON THE FINAL ASSESSMENT  ROLL
COMPLETED IN TWO THOUSAND NINETEEN.  WHERE APPROPRIATE, THE COMMISSIONER
IS  FURTHER  AUTHORIZED  TO  REMIT  DIRECTLY  TO SUCH A PROPERTY OWNER A
PAYMENT IN AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE SCHOOL TAX BILL
THAT THE PROPERTY OWNER ACTUALLY RECEIVED AND THE SCHOOL TAX  BILL  THAT
THE PROPERTY OWNER WOULD HAVE RECEIVED HAD HE OR SHE ENROLLED IN A TIME-
LY MANNER.
  § 2. This act shall take effect immediately.

                                 PART V

  Section  1. Section 902 of the racing, pari-mutuel wagering and breed-
ing law is amended by adding a new subdivision 7 to read as follows:
  7. A FRANCHISED RACING CORPORATION MAY, IN ITS DISCRETION AND  AT  ITS
EXPENSE,  FUND  FOR  THE EXCLUSIVE USE OR UTILIZATION OF THE COMMISSION,
THE CONSTRUCTION AND INITIAL EQUIPPING OF AN  EQUINE  DRUG  TESTING  AND
RESEARCH  LABORATORY  LOCATED  WITHIN  THIS  STATE  TO  BE USED FOR SUCH
PURPOSES SPECIFIED IN SUBDIVISION ONE OF THIS SECTION. SUCH  CORPORATION
SHALL  CONSULT WITH THE COMMISSION REGARDING THE PROPER SCOPE AND EQUIP-
PING OF A LABORATORY.  THE SITING AND USE OF SUCH  LABORATORY  SHALL  BE
PURSUANT  TO  A  LONG-TERM LEASE BETWEEN THE CORPORATION AND THE COMMIS-
SION. THE COMMISSION SHALL OPERATE OR CONTRACT FOR THE OPERATION OF SUCH
LABORATORY.
  § 2. Paragraph 3 of subdivision f of section 1612 of the tax  law,  as
amended  by  chapter  174  of  the  laws  of 2013, is amended to read as
follows:

S. 7509                            45                            A. 9509

  3. Four percent of the total revenue wagered after payout of prizes to
be deposited into an account of the franchised  corporation  established
pursuant  to section two hundred six of the racing, pari-mutuel wagering
and breeding law to be used for capital expenditures in maintaining  and
upgrading  Aqueduct  racetrack, Belmont Park racetrack and Saratoga race
course. CAPITAL EXPENDITURES MAY INCLUDE FUNDING THE CONSTRUCTION OF AND
INITIALLY EQUIPPING A STATE-BASED EQUINE DRUG TESTING AND RESEARCH LABO-
RATORY TO BE USED PURSUANT TO SUBDIVISION SEVEN OF SECTION NINE  HUNDRED
TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
  § 3. This act shall take effect immediately.

                                 PART W

  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

S. 7509                            46                            A. 9509

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

S. 7509                            47                            A. 9509

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

S. 7509                            48                            A. 9509

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  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,

S. 7509                            49                            A. 9509

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

S. 7509                            50                            A. 9509

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

S. 7509                            51                            A. 9509

  § 2. This act shall take effect immediately.

                                 PART X

  Section  1.  Paragraph  (b)  of  subdivision  3 of section 1367 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:
  (b)  A  sports  pool  shall be PRIMARILY operated in a sports wagering
lounge located at a casino. The lounge shall conform to all requirements
concerning square footage,  design,  equipment,  security  measures  and
related  matters which the commission shall by regulation prescribe. THE
COMMISSION MAY ALSO APPROVE ADDITIONAL LOCATIONS FOR A SPORTS POOL WITH-
IN THE CASINO, IN AREAS THAT HAVE BEEN APPROVED BY  THE  COMMISSION  FOR
THE  CONDUCT OF OTHER GAMING, TO BE OPERATED IN A MANNER AND METHODOLOGY
AS REGULATION SHALL PRESCRIBE.
  § 2. This act shall take effect immediately.

                                 PART Y

  Section 1. Paragraph 1 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:
  (1) sixty percent of the total amount for which tickets have been sold
for [a lawful lottery] THE QUICK DRAW game [introduced on or  after  the
effective date of this paragraph,] subject to [the following provisions:
  (A) such game shall be available only on premises occupied by licensed
lottery sales agents, subject to the following provisions:
  (i)  if  the  licensee  does not hold a license issued pursuant to the
alcoholic beverage control law to sell alcoholic beverages for  consump-
tion  on  the  premises,  then  the  premises must have a minimum square
footage greater than two thousand five hundred square feet;
  (ii) notwithstanding the foregoing  provisions,  television  equipment
that  automatically  displays  the  results  of  such  drawings  may  be
installed and used without regard to the square footage if such premises
are used as:
  (I) a commercial bowling establishment, or
  (II) a facility authorized under the racing, pari-mutuel wagering  and
breeding law to accept pari-mutuel wagers;
  (B) the] rules for the operation of such game [shall be] as prescribed
by  regulations promulgated and adopted by the division, provided howev-
er, that such rules shall provide that no person under the age of  twen-
ty-one  may  participate in such games on the premises of a licensee who
holds a license issued pursuant to the alcoholic beverage control law to
sell alcoholic beverages for consumption on the premises; and, provided,
further, that such regulations may be revised on an emergency basis  not
later than ninety days after the enactment of this paragraph in order to
conform such regulations to the requirements of this paragraph; or
  § 2. This act shall take effect immediately.

                                 PART Z

  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  HH  of  chapter  59 of the laws of 2019, is amended to read as
follows:

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

S. 7509                            53                            A. 9509

section  2  of  part HH of chapter 59 of the laws of 2019, is amended to
read as follows:
  (iii) Of the sums retained by a receiving track located in Westchester
county  on  races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [twenty] TWENTY-ONE, the amount used exclusively
for purses to be awarded at races  conducted  by  such  receiving  track
shall  be computed as follows: of the sums so retained, two and one-half
percent of the total pools. Such amount shall be increased or  decreased
in  the  amount  of fifty percent of the difference in total commissions
determined by comparing the total commissions available after July twen-
ty-first, nineteen hundred ninety-five to  the  total  commissions  that
would  have  been  available  to  such track prior to July twenty-first,
nineteen hundred ninety-five.
  § 3. The opening paragraph of subdivision 1 of  section  1014  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 3
of part HH of chapter 59 of the laws of 2019,  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 [twenty] TWENTY-ONE and on any day regardless of
whether or not a franchised corporation is conducting a race meeting  in
Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
two  thousand  [twenty]  TWENTY-ONE.    On any day on which a franchised
corporation has not scheduled a racing program but a thoroughbred racing
corporation located within the state is conducting  racing,  every  off-
track  betting corporation branch office and every simulcasting facility
licensed in accordance with section one thousand seven (that has entered
into a written agreement with such facility's representative  horsemen's
organization, as approved by the commission), one thousand eight, or one
thousand  nine  of this article shall be authorized to accept wagers and
display the live simulcast signal from thoroughbred  tracks  located  in
another state or foreign country subject to the following provisions:
  § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and  breeding  law,  as amended by section 4 of part HH of chapter 59 of
the laws of 2019, 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 [twenty] TWENTY-ONE.  This section shall super-
sede all inconsistent provisions of this chapter.
  § 5. The opening paragraph of subdivision 1 of  section  1016  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 5
of part HH of chapter 59 of the laws of 2019,  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 [twenty] TWENTY-ONE.   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-

S. 7509                            54                            A. 9509

sand  nine  of  this  article  shall  be authorized to accept wagers and
display the live  full-card  simulcast  signal  of  thoroughbred  tracks
(which  may  include  quarter  horse or mixed meetings provided that all
such wagering on such races shall be construed to be thoroughbred races)
located  in  another  state or foreign country, subject to the following
provisions; provided,  however,  no  such  written  agreement  shall  be
required of a franchised corporation licensed in accordance with section
one thousand seven of this article:
  §  6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of part HH of chapter
59 of the laws of 2019, 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 [nineteen] TWENTY, when a franchised corporation  is  conducting  a
race  meeting  within the state at Saratoga Race Course, every off-track
betting  corporation  branch  office  and  every  simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into  a written agreement with such facility's representative horsemen's
organization as approved by the commission), one thousand eight  or  one
thousand  nine  of this article shall be authorized to accept wagers and
display the live simulcast signal from thoroughbred  tracks  located  in
another  state, provided that such facility shall accept wagers on races
run at all in-state thoroughbred  tracks  which  are  conducting  racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  §  7.  Section  32  of  chapter  281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting, as amended by section 7 of part HH of chapter  59  of  the
laws of 2019, 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,  [2020]  2021;  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 HH of chapter 59 of the laws of 2019, 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, [2020] 2021; and section eighteen of  this
act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772  of
the laws of 1989 took effect.

S. 7509                            55                            A. 9509

  §  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
HH of chapter 59 of the laws of 2019, is amended to read as follows:
  (a)  The  franchised  corporation  authorized  under  this  chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders  of
winning  tickets therein, provided such tickets be presented for payment
before April first of the year following the  year  of  their  purchase,
less  an  amount  which  shall be established and retained by such fran-
chised corporation of between twelve to  seventeen  per  centum  of  the
total  deposits in pools resulting from on-track regular bets, and four-
teen to twenty-one per centum of the total deposits in  pools  resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
total  deposits in pools resulting from on-track exotic bets and fifteen
to thirty-six per centum of the total deposits in pools  resulting  from
on-track  super  exotic  bets, plus the breaks. The retention rate to be
established is subject to the prior approval of the gaming commission.
  Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter.  "Exotic  bets"  and
"multiple  bets"  shall  have  the  meanings  set  forth in section five
hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
meaning  set  forth  in  section  three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a  single  bet  or
wager on the outcomes of six races. The breaks are hereby defined as the
odd  cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over  any  multiple  of  ten  for
payoffs  greater  than  five  dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs  greater  than  twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid  by  such  franchised  corporation  to  the
commissioner  of  taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run  at
the  race  meetings  held  by such franchised corporation, the following
percentages of the total pool for regular and  multiple  bets  five  per
centum  of regular bets and four per centum of multiple bets plus twenty
per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
centum  plus  twenty per centum of the breaks, and for super exotic bets
seven and one-half per centum plus fifty per centum of the breaks.
  For the  period  June  first,  nineteen  hundred  ninety-five  through
September  ninth,  nineteen  hundred  ninety-nine,  such  tax on regular
wagers shall be three per centum and such tax on multiple  wagers  shall
be  two  and  one-half per centum, plus twenty per centum of the breaks.
For the period September tenth,  nineteen  hundred  ninety-nine  through
March  thirty-first,  two  thousand one, such tax on all wagers shall be
two and six-tenths per centum and for the period April first, two  thou-
sand   one   through   December   thirty-first,  two  thousand  [twenty]
TWENTY-ONE, 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

S. 7509                            56                            A. 9509

for  the  period  April first, two thousand one through December thirty-
first, two thousand [twenty] TWENTY-ONE, such payment  shall  be  seven-
tenths of one per centum of such pools.
  § 10. This act shall take effect immediately.

                                 PART AA

  Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real
property  tax  law,  as amended by section 1 of part RR of chapter 59 of
the laws of 2019, 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 years,  the  parcel's  affil-
iated  income  may  be no greater than five hundred thousand dollars, as
determined by the commissioner 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.  [Begin-
ning  with]  FOR  the  two  thousand nineteen-two thousand twenty school
year, for purposes of the exemption  authorized  by  this  section,  the
parcel's  affiliated  income  may  be  no greater than two hundred fifty
thousand dollars, as so determined.  BEGINNING  WITH  THE  TWO  THOUSAND
TWENTY--TWO  THOUSAND  TWENTY-ONE  SCHOOL  YEAR,  FOR  PURPOSES  OF  THE
EXEMPTION AUTHORIZED BY THIS SECTION, THE PARCEL'S AFFILIATED INCOME MAY
BE NO GREATER THAN TWO HUNDRED 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  residing
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. This act shall take effect immediately.

                                 PART BB

  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, restrict, and control the  cultivation,  processing,  manufacture,

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wholesale,  and  retail production, distribution, transportation, adver-
tising, marketing, and sale  of  cannabis,  cannabis  products,  medical
cannabis,  and  cannabinoid  hemp  within the state of New York, for the
purposes  of fostering and promoting temperance in their consumption, to
properly protect the public health, safety, and welfare, to displace the
illicit cannabis market,  to  provide  safe  and  affordable  access  to
medical cannabis for patients, and to promote social and economic equal-
ity.  It is hereby declared that such policy will best be carried out by
empowering the state office of cannabis  management  and  its  executive
director,  to  determine  whether public health, safety, convenience and
advantage will be promoted by the issuance  of  registrations,  licenses
and/or permits granting the privilege to produce, distribute, transport,
sell,  or traffic in cannabis, medical cannabis, or cannabinoid hemp, to
increase or decrease in the number thereof, scope of activities, and the
location of premises registered, licensed, or permitted thereby, subject
only to the right of judicial review hereinafter provided for. It is the
purpose of this chapter to carry out that policy in the public interest.
The restrictions, regulations, and provisions contained in this  chapter
are enacted by the legislature for the protection of the health, safety,
and welfare of the people of the state.
  §  3.  Definitions.    Whenever used in this chapter, unless otherwise
expressly stated or unless the context  or  subject  matter  requires  a
different  meaning,  the  following  terms shall have the representative
meanings hereinafter set forth or indicated:
  1. "Applicant" means a person or for-profit entity  or  not-for-profit
corporation  and  includes:  board  members, officers, managers, owners,
partners, principal stakeholders, financiers, and members who submit  an
application  to become a registered organization, licensee or permittee,
and may include any other individual or entity with a material or opera-
tional interest in the license or its operations as  determined  by  its
executive director in regulation.
  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-tenths of one percent by weight or by volume of
delta-9   tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran
numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1
(6) monoterpene numbering system or which exceeds an amount  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 per serving or per product  determined  by  the
executive director in regulation.
  5.  "Adult-use  cannabis consumer" means a person, twenty-one years of
age or older, who purchases approved  adult-use  cannabis  or  adult-use
cannabis products for personal use, but not for resale to others.
  6.  "Adult-use  cannabis  processor"  means  a  person licensed by the
office who may  purchase  adult-use  cannabis  from  adult-use  cannabis
cultivators,  and  who  may  process  adult-use  cannabis, and adult-use
cannabis products, package and label adult-use cannabis,  and  adult-use

S. 7509                            58                            A. 9509

cannabis products for sale in adult-use cannabis retail outlets, and who
may  sell  adult-use cannabis and cannabis-infused products at wholesale
to licensed adult-use cannabis distributors, in  accordance  with  regu-
lations determined by the executive director.
  7.  "Adult-use  cannabis  product"  or  "adult-use cannabis" means any
approved adult-use cannabis, concentrated cannabis, or adult-use  canna-
bis-infused  or  extracted products, or products which otherwise contain
or are derived from adult-use cannabis, and which have  been  authorized
for  distribution  to  and  for use by an adult-use cannabis consumer as
determined by the executive director in regulation.
  8. "Adult-use cannabis retail dispenser"  means  a  person  or  entity
licensed  by  the executive director who may purchase adult-use cannabis
products, from adult-use cannabis cultivators, processors  or  distribu-
tors, and who may sell approved adult-use cannabis products, in a retail
outlet,  in  accordance  with  regulations  determined  by the executive
director.
  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. "Adult-use cultivation"  shall  include,  the  planting,  growing,
cloning,  harvesting,  drying, curing, grading and trimming of adult-use
cannabis, or such other cultivation related processes as  determined  by
the executive director in regulation.
  14. "Executive director" means the executive director of the office of
cannabis management.
  15.  "Convicted"  and "conviction" include and mean a finding of guilt
resulting from a plea of guilty, the decision of a court  or  magistrate
or  the verdict of a jury, irrespective of the pronouncement of judgment
or the suspension thereof.
  16. "Designated caregiver" means an individual designated by a  certi-
fied  patient  in a registry application. A certified patient may desig-
nate up to two 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

S. 7509                            59                            A. 9509

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.  "Hemp"  means  the  plant Cannabis sativa L. and any part of such
plant, including the seeds thereof and all derivatives, extracts, canna-
binoids, isomers, acids, salts, and salts of isomers, whether growing or
not, with a delta-9 tetrahydrocannabinol concentration of not more  than
three-tenths of one percent on a dry weight or per volume basis.
  22.  "Cannabinoid  hemp"  means  any hemp and any product processed or
derived from hemp, that is used for human consumption provided that when
such product is packaged or offered for retail sale to  a  consumer,  it
shall  not have a concentration of more than three-tenths of one percent
of delta-9 tetrahydrocannabinol  or  more  than  an  amount  of  delta-9
tetrahydrocannabinol  per quantity of cannabinoid hemp product as deter-
mined by the executive director in regulation.
  23. "Cannabinoid hemp processor license" means a  license  granted  by
the  office to process, extract, pack or manufacture cannabinoid hemp or
hemp extract into products, whether in intermediate or final form,  used
for human consumption.
  24. "Cannabinoid hemp retailer license" means a license granted by the
office  to  sell  cannabinoid hemp, in final approved form, to consumers
within the state.
  25. "Individual dose" means a single measure  of  adult-use  cannabis,
medical cannabis or cannabinoid hemp product, as determined by the exec-
utive  director  in  regulation.  Individual  doses  may  be established
through a measure of raw material, a measure of an  individual  cannabi-
noid or compound, or an equivalency thereof.
  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 and approved for a certified medical  use,  as
determined  by  the  executive director in consultation with the commis-
sioner of health.
  30. "Office" or "office of cannabis management"  means  the  New  York
state office of cannabis management.

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  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-three of this section; and (iii) completes, at a mini-
mum,  a two-hour course as determined by the executive director in regu-
lation; provided however, the executive director may  revoke  a  practi-
tioner's ability to certify patients for cause.
  35.  "Processing" includes, blending, extracting, infusing, packaging,
labeling, branding and otherwise making or preparing adult-use cannabis,
medical cannabis and cannibinoid hemp, or such other  related  processes
as  determined by the executive director in regulation. Processing shall
not include the cultivation of cannabis.
  36. "Registered organization" means an organization  registered  under
article three of this chapter.
  37. "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.
  38. "Registry identification card" means a document that identifies  a
certified  patient  or  designated  caregiver, as provided under section
thirty-two of this chapter.
  39. "Retail sale" or "sale at retail" means a sale to a consumer or to
any person for any purpose other than for resale.
  40. "Retailer" means any licensed  person  who  sells  at  retail  any
approved adult-use cannabis product.
  41.  "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.
  42.  "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.
  43.  "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.
  44. "Traffic in" includes to cultivate, process, manufacture, distrib-
ute or sell any cannabis, adult-use cannabis product or medical cannabis
at wholesale or retail.
  45. "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.

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  46. "Wholesale sale" or "sale at wholesale" means a sale to any person
for purposes of resale.
  47.  "Distributor"  means any person who sells at wholesale any adult-
use cannabis product, except medical  cannabis,  the  sale  of  which  a
license is required under the provisions of this chapter.
  48.  "Warehouse" means and includes a place in which cannabis products
are housed or stored.

                                ARTICLE 2
              NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT
Section 7.  Establishment of an office of cannabis management.
        8.  Establishment of the cannabis control board.
        9.  Functions, powers and duties of the cannabis control board.
        10. Executive director.
        11. Functions, powers and duties of  the  office  and  executive
              director.
        12. Rulemaking authority.
        13. Deputies; employees.
        14. Disposition of moneys received for license fees.
        15. Violations  of  cannabis  laws or regulations; penalties and
              injunctions.
        16. Formal hearings; notice and procedure.
        17. Ethics, transparency and accountability.
        18. Public health campaign.
        19. Traffic safety oral fluid or other roadside detection method
              pilot program.
        20. Establish uniform policies and best practices.
  § 7. Establishment of an office of cannabis management. There is here-
by established, within the division of alcoholic  beverage  control,  an
independent  office  of  cannabis management, which shall have exclusive
jurisdiction to exercise the powers and duties provided by this chapter.
The office shall exercise  its  authority  by  and  through  a  cannabis
control board and an executive director.
  §  8.  Establishment  of  the cannabis control board.  1. The cannabis
control board or "board" is created and shall consist of  a  chairperson
with one vote, and four other voting board members, all of whom shall be
citizens and residents of this state.
  2.  The  governor  shall  appoint all members of the board,  and shall
designate one member to serve as chairperson. All members of  the  board
shall  serve  for  a  term of three years and shall continue to serve in
office until the expiration of their terms and  until  their  successors
are  appointed  and  have  qualified. The members, other than the chair-
person, shall be compensated at a rate of two hundred sixty dollars  per
day  when  performing  the work of the board, together with an allowance
for actual and necessary expenses incurred in  the  discharge  of  their
duties.  No  person  shall  be appointed to or employed by the board if,
during the period commencing three years prior to appointment or employ-
ment, such person held any direct or indirect interest in, or employment
by, any corporation, association or person engaged in regulated activity
within the state.
  3. Prior to appointment or employment, each member, officer or employ-
ee of the board shall swear or affirm that he or she possesses no inter-
est in any corporation or association holding a  license,  registration,
certificate  or  permit  issued  by  the board. Thereafter, no member or
officer of the board shall hold any direct interest in or be employed by
any applicant for or by any corporation, association or person holding a

S. 7509                            62                            A. 9509

license, registration, certificate or permit issued by the board  for  a
period  of  four years commencing on the date his or her membership with
the board terminates. Further, no employee of the board may acquire  any
direct or indirect interest in, or accept employment with, any applicant
for or any person holding a license, registration, certificate or permit
issued  by  the board for a period of two years commencing at the termi-
nation of employment with  the  board.  The  board  may,  by  resolution
adopted  by  unanimous  vote at a properly noticed public meeting, waive
for good cause the pre-employment restrictions enumerated in this subdi-
vision for a prospective employee whose duties and responsibilities  are
not  policy-making.  Such adopted resolution shall state the reasons for
waiving the pre-employment  conditions  for  the  prospective  employee,
including  a  finding that there were no other qualified candidates with
the desired experience for the specified position.
  4. Any member of the board may be removed by the  governor  for  cause
after notice and an opportunity to be heard.
  5. In the event of a vacancy caused by the death, resignation, removal
or  disability  of  any board member, the vacancy shall be filled in the
same manner as the original appointment; provided that in such  instance
the  governor  may appoint a member of the board to serve as chairperson
for the remainder of their term.
  6. A majority of the board members of the authority shall constitute a
quorum for the purpose of conducting business, and a  majority  vote  of
those present shall be required for action.
  7. The board shall meet as frequently as its business may require, and
at  least  four times in each year. The board may enact and from time to
time amend by-laws in relation to its meetings and the  transactions  of
its business.
  §  9.  Functions, powers and duties of the cannabis control board. The
cannabis control board shall have such powers  and  duties  as  are  set
forth in this chapter and shall:
  1.  approve  the  office's social and economic equity plan pursuant to
section eighty-four of this chapter;
  2. approve the type and number of available  licenses  issued  by  the
office;
  3. approve the opening of new license application periods and when new
or additional licenses are made available;
  4. approve the creation of any new type of license;
  5.  approve  any  price  quotas or price controls set by the executive
director as provided by this chapter;
  6. at the request of the executive director, appoint  advisory  groups
or committees necessary to provide assistance to the office to carry out
the policy of the state and purpose of this chapter;
  7. when an administrative decision is appealed by an applicant, regis-
tered  organization,  licensee or permittee, issue a final determination
of the office; and
  8. promulgate any rules and regulations necessary to  effectuate  this
chapter.
  §  10.  Executive director.   The office shall exercise its authority,
through an executive director. The executive director shall  receive  an
annual salary within the amounts appropriated therefor.
  §  11.    Functions,  powers and duties of the executive director. 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.

S. 7509                            63                            A. 9509

  2. To limit the number, scope, and/or availability  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 or any person engaged in activities without a
license or permit for which a license or  permit  is  required  by  this
chapter.  Any civil penalty so imposed shall be in addition to and sepa-
rate and apart from the terms and provisions of the bond required pursu-
ant to section thirty-five of this chapter.
  4. To fix by rule the standards and requirements for the  cultivation,
processing,  packaging,  marketing, and sale of medical cannabis, adult-
use cannabis and cannabinoid hemp, including but  not  limited  to,  the
ability  to  regulate  potency,  excipients,  and the types and forms 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 cannabinoid  hemp  to
be  sold  or  consumed  in the state and to ensure that products are not
packaged, marketed, or otherwise  trafficked  in  a  way  which  targets
minors or promotes increased use or cannabis use disorders.
  5.  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 adult-use cannabis products, medical canna-
bis or cannabinoid hemp, for and during the period of such emergency.
  6. To inspect or provide for the inspection at any time of  any  prem-
ises  where  adult-use cannabis, medical cannabis or cannabinoid hemp is
cultivated, processed, stored, distributed or  sold  including  but  not
limited to compelling the production and review of all relevant business
records and financial statements and corporate documents.
  7.  To  prescribe forms of applications, criteria of review and method
of selection or issuance for registrations, licenses and  permits  under
this chapter and of all reports deemed necessary by the office.
  8. Intentionally omitted.
  9.  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.
  10. To develop and establish minimum criteria for certifying employees
to work in the cannabis industry, which may include the establishment of
a cannabis workers certification program.
  11.  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.
  12.  To  establish  and  implement  a social and economic equity plan,
subject to approval of the board, to ensure access to, and participation
in, the cannabis industry by  social  equity  and  economic  empowerment
applicants as prescribed in section eighty-four of this chapter.
  13.  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  or
administrative  hold  of  products  and a product recall 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,

S. 7509                            64                            A. 9509

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.
  14. To issue guidance and industry advisories.
  15. To recommend that the state enter into tribal-state compacts  with
the  New York state Indian nations and tribes, as defined by section two
of the Indian law, authorizing such Indian nations or tribes to acquire,
possess, manufacture, sell, deliver, transport, distribute  or  dispense
adult-use cannabis and/or medical cannabis.
  16.  To  coordinate  across state agencies and departments in order to
research and study any changes in  cannabis  use  and  the  impact  that
cannabis  use  and the regulated cannabis industry may have on access to
cannabis products, public health, and public safety.
  § 12. Rulemaking authority. 1. The  board  shall  perform  such  acts,
prescribe  such  forms and promulgate such rules, regulations and orders
as it may deem necessary or proper to fully effectuate the provisions of
this chapter, in accordance with the state administrative procedure act.
  2. The board shall promulgate any and all necessary  rules  and  regu-
lations  governing  the production, processing, transportation, distrib-
ution, marketing, advertising and sale of  medical  cannabis,  adult-use
cannabis and cannabinoid hemp, the registration of organizations author-
ized  to traffic in medical cannabis, the licensing and/or permitting of
adult-use cannabis cultivators, processors, cooperatives,  distributors,
and  retail dispensaries, and the licensing of cannabinoid hemp process-
ors and retailers, including but not limited to:
  (a) prescribing  forms  and  establishing  application,  registration,
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 permit-
tee and on the premise of  any  registered  organization,  licensee,  or
permittee;
  (d)  methods  of producing, processing, and packaging adult-use canna-
bis, medical cannabis, cannabis-infused products, and cannabinoid  hemp;
conditions of sanitation, standards of ingredients, quality, and identi-
ty of adult-use cannabis and medical cannabis products cultivated, proc-
essed,  packaged, or sold by registered organizations and licensees, and
standards for the devices used to consume  adult-use  cannabis,  medical
cannabis and cannabinoid hemp;
  (e)  security  requirements for adult-use cannabis retail dispensaries
and premises where cannabis products or medical cannabis are cultivated,
produced, processed, or stored,  and  safety  protocols  for  registered
organizations, licensees and their employees;
  (f) hearing procedures and additional causes for cancellation, revoca-
tion, and/or civil penalties against any person registered, licensed, or
permitted by the authority; and
  (g)  the circumstances under and manner and process by which an appli-
cant, registered organization, licensee,  or  permittee,  may  apply  to
change  or  alter its previously submitted or approved owners, managers,
members, directors, financiers, or interest holders.
  3. The board shall promulgate rules and regulations to:

S. 7509                            65                            A. 9509

  (a) prevent the distribution of adult-use cannabis  to  persons  under
twenty-one  years of age including the marketing, packaging and branding
of adult-use cannabis;
  (b) prevent the revenue from the sale of cannabis from going to crimi-
nal enterprises, gangs, and cartels;
  (c)  prevent  the diversion of adult-use cannabis and medical 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;
  (h) prevent the possession and use of adult-use cannabis  and  medical
cannabis on federal property;
  (i)  regulate  and restrict the use of cannabis and prohibit the traf-
ficking of dangerous cannabis products in order to reduce  the  rate  of
cannabis  abuse,  cannabis dependency, cannabis use disorders, and other
adverse public health and safety consequences of cannabis use;
  (j) educate the  public  and  at-risk  populations  about  responsible
cannabis use and the potential dangers of cannabis use;
  (k)  prevent  predatory  marketing  and advertising practices targeted
toward at-risk populations such as  minors,  pregnant  or  breastfeeding
women,  and demographics which disproportionately engage in higher rates
of cannabis use and display higher rates of cannabis use disorders;
  (l) notwithstanding subdivision two of this section, revoke or  refuse
to  issue any class or type of license, permit, or registration if he or
she determines that failing to do so would conflict with any federal law
or guidance pertaining to regulatory, enforcement and other systems that
states, businesses, or other institutions may implement to mitigate  the
potential  for  federal  intervention  or  enforcement against legalized
adult-use cannabis and medical cannabis programs or businesses;
  (m) notwithstanding any other section of state law,   adopt rules  and
regulations  based  on  federal  guidance provided those rules and regu-
lations are designed to comply with federal guidance and mitigate feder-
al enforcement against the registrations, licenses,  or  permits  issued
under  this  chapter,  or  the  cannabis  industry  as a whole. This may
include regulations which permit the sharing of licensee, registrant, or
permit-holder information with designated banking  or  financial  insti-
tutions; and
  (n)  establish  application, licensing, and permitting processes which
ensure all material owners and interest holders are disclosed  and  that
officials  or  other  individuals  with  control over the approval of an
application, permit, or license do not themselves have any  interest  in
an application, license, or permit.
  4.  The  board, 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
adult-use cannabis and medical cannabis, including but  not  limited  to
environmental and energy standards and restrictions on the use of pesti-
cides.

S. 7509                            66                            A. 9509

  §  13.  Deputies; employees. 1. The executive director shall appoint a
deputy director for health and safety  who  shall  be  a  duly  licensed
physician  within  the  state and who shall oversee the medical cannabis
program and all clinical aspects of the office. The  executive  director
shall  also appoint a deputy director for social and economic equity who
shall oversee the social and economic equity plan. The executive  direc-
tor  may  appoint  such  other  deputies as he or she deems necessary to
fulfill the responsibilities of the office.
  2. The executive director may appoint and remove from time to time, in
accordance with law and any applicable rules of the state civil  service
commission,  such  additional employees, under such titles as the execu-
tive director may assign, as the executive director may  deem  necessary
for  the efficient administration of the office. They shall perform such
duties as the executive director shall assign to them. The  compensation
of such employees shall be within the amounts appropriated therefor.
  3.  Investigators  employed  by the office shall be deemed to be peace
officers for the purpose of enforcing the provisions of this chapter  or
judgments  or orders obtained for violation thereof, with all the powers
set forth in section 2.20 of the criminal procedure law.
  § 14. Disposition of moneys received for license  fees.    The  office
shall  establish a schedule of application, licensing, and renewal fees,
based upon the cost of enforcing this chapter which may  vary  based  on
the  nature,  size,  class,  or  scope  of  the  cannabis business being
licensed or the classification of the applicant, as follows:
  1. The office shall charge each registered organization, licensee  and
permittee  a  registration, licensure or permit fee, and renewal fee, as
applicable.  The fees may vary depending upon the nature, size, class or
scope of the different registration, licensure and permit activities, or
the classification of the applicant.
  2. The total fees assessed pursuant to this chapter may be set  at  an
amount  that  will  generate sufficient total revenue to fully cover the
total costs of administering this chapter.
  3. The office shall deposit all fees collected in the New  York  state
cannabis  revenue fund established pursuant to section ninety-nine-hh of
the state finance law.
  § 15. 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 a fine not exceeding five thousand dollars per violation,
per day.
  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 per violation,  per
day.
  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,

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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.
  §  16.  Formal  hearings; notice and procedure.   1. The board, or any
person designated by the board for this purpose, may issue subpoenas and
administer oaths in connection with any hearing or  investigation  under
or  pursuant  to this chapter, and it shall be the duty of the board and
any persons designated by the board for such purpose to issue  subpoenas
at the request of and upon behalf of the respondent.
  2.  The  board and those designated by the board shall not be bound by
the laws of evidence in the conduct  of  hearing  proceedings,  but  the
determination shall be founded upon substantial 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 board or its designee may make appropriate
determinations and issue a final order in accordance therewith.
  7.  The  board  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.
  §  17.  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

S. 7509                            68                            A. 9509

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,  marketing,
or  storage of adult-use cannabis, medical cannabis or cannabinoid hemp,
or own any stock in any corporation which has any interest,  proprietary
or otherwise, direct or indirect, in any premises where adult-use canna-
bis,  medical  cannabis  or  cannabinoid  hemp is cultivated, processed,
distributed or sold, or in any business wholly or partially  devoted  to
the cultivation, processing, distribution, sale, transportation or stor-
age  of  adult-use  cannabis,  medical  cannabis or cannabinoid hemp, or
receive any commission or profit whatsoever, direct  or  indirect,  from
any person applying for, receiving, managing or operating 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  to
which  a registered organization, licensee, permittee or applicant would
appear. Anyone who violates any of the provisions of this section  shall
be  removed  or  shall  divest him or herself of such direct or indirect
interests.
  § 18. 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 monitoring, surveillance and
education campaign regarding the legalization of adult-use cannabis  and
the impact of cannabis use on public health and safety.
  §  19.  Traffic  safety  oral fluid or other roadside detection method
pilot program. The office, in consultation with the commissioner of  the
department of motor vehicles and the superintendent of the state police,
shall  develop  and  implement a workgroup together with other states to
outline goals and standard  operating  procedures  for  a  statewide  or
regional oral fluid or other roadside detection pilot program. The work-
group  may include, but not be limited to, representatives from district
attorney offices, local and county police departments, and  other  rele-
vant public safety experts.
  §  20.  Establish  uniform  policies  and best practices. To engage in
activities with other states, territories, or jurisdictions in order  to
coordinate  and establish, uniform policies and best practices in canna-
bis regulation. These  activities  shall  prioritize  coordination  with
neighboring  and regional states, and may include, but not be limited to
establish working groups related to laboratory testing, products safety,
taxation, road safety, and any other issues identified by the  executive
director.  The executive director may enter into any contracts, or memo-
randa of understanding necessary to effectuate this provision.

                                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. Intentionally omitted.
        37. Reports of registered organizations.
        38. Evaluation; research programs; report by office.

S. 7509                            69                            A. 9509

        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 any
approved form of medical cannabis the patient should consume,  including
the  method of consumption and any particular strain, variety, and quan-
tity or percentage 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.

S. 7509                            70                            A. 9509

  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.
  9.  A practitioner who offers patient certification shall not have any
business relationship with, or own any stock in  any  corporation  which
has  any  interest, proprietary or otherwise, direct or indirect, in any
registered organization, or other business  or  premises  where  medical
cannabis  is  cultivated, processed, distributed or sold. This provision
shall not be construed to prohibit a  practitioner  who  offers  patient
certification  from providing their medical expertise to, or engaging in
medical cannabis research with, a registered organization or a  licensee
that  traffics in medical cannabis provided that the practitioner is not
compensated for or offered any consideration for  these  educational  or
research activities.
  §  31. Lawful medical use. The possession, acquisition, use, delivery,
transfer, transportation, or administration of  medical  cannabis  by  a
certified  patient, designated caregiver or designated caregiver facili-
ty, for certified medical  use,  shall  be  lawful  under  this  article
provided that:
  (a)  the  cannabis  that may be possessed by a certified patient shall
not exceed quantities determined by  the  executive  director  in  regu-
lation;
  (b)  the  cannabis that may be possessed by designated caregivers does
not exceed the quantities determined by  the  executive  director  under
paragraph (a) of this subdivision for any certified patient for whom the
caregiver is issued a valid registry identification card;
  (c) the cannabis that may be possessed by designated caregiver facili-
ties does not exceed the quantities determined by the executive director
under paragraph (a) of this subdivision for each certified patient under
the care or treatment of the facility;
  (d) the form or forms of medical cannabis that may be possessed by the
certified patient, designated caregiver or designated caregiver facility
pursuant  to a certification shall be in compliance with any recommenda-
tion or limitation by the practitioner  as  to  the  form  or  forms  of
medical  cannabis  or  dosage  for  the certified patient in the certif-
ication and consistent with any  guidance,  limitation,  and  regulation
issued by the executive director; and
  (e)  the  medical  cannabis  shall  be kept in the original package in
which it was dispensed  under  this  article,  except  for  the  portion

S. 7509                            71                            A. 9509

removed  for  immediate  consumption  for  certified  medical use by the
certified patient.
  §  32. Registry identification cards.  1. Upon approval of the certif-
ication, the office shall issue registry identification cards for certi-
fied patients and designated caregivers. A registry identification  card
shall  expire  as  provided  in this article or as otherwise provided in
this section.  The office shall begin  issuing  registry  identification
cards  as  soon as practicable after the certifications required by this
chapter are granted. The office may specify a form for a registry appli-
cation, in which case the office shall  provide  the  form  on  request,
reproductions  of  the form may be used, and the form shall be available
for downloading from the office's website.
  2. To obtain, amend or renew a registry identification card, a  certi-
fied  patient  or designated caregiver shall file a registry application
with the office, unless otherwise exempted by the executive director  in
regulation.  The  registry  application  or  renewal  application  shall
include such information as prescribed by the office which shall include
but not be limited to:
  (a) in the case of a certified patient:
  (i) the patient's certification, a new written certification shall  be
provided with a renewal application if required by the office;
  (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  applies to designate a designated
caregiver, the name, address, and date of birth of the designated  care-
giver,  and  other  individual  identifying  information required by the
office; and
  (ix) other individual identifying information required by the office;
  (b) in the case of a designated caregiver:
  (i) the name, address, and date of birth of the designated caregiver;
  (ii) if the designated caregiver has a registry  identification  card,
the  registry identification number and expiration date of that registry
identification card; and
  (iii) other individual identifying information required by the office;
  (c) a statement that a false statement  made  in  the  application  is
punishable under section 210.45 of the penal law;
  (d)  the  date  of  the application and the signature of the certified
patient or designated caregiver, as the case may be;
  (e) any other requirements determined by the executive director.
  3. Where a certified patient is under the age of eighteen or otherwise
incapable of consent:
  (a) The application for a registry identification card shall  be  made
by  an  appropriate  person  over eighteen years of age. The application
shall state facts demonstrating that the person is appropriate.
  (b) The designated caregiver shall be: (i) a parent or legal  guardian
of  the certified patient; (ii) a person designated by a parent or legal
guardian; (iii) a designated caregiver facility; or (iv) an  appropriate

S. 7509                            72                            A. 9509

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 one certified
patient at one time, unless approved by the office. The office may allow
a  designated  caregiver  to  serve more than one patient in cases where
additional designating patients are immediate  family  members,  in  the
immediate  and continuous care of the caregiver, or satisfy other eligi-
bility requirements determined by the executive director in regulation.
  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 and approving a complete application under this
section, unless it determines that the application is incomplete, factu-
ally inaccurate, or fails to satisfy any applicable regulation, 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,  as  applicable,
of the registry identification card;
  (c) contain a registry identification number for the certified patient
or  designated  caregiver, as the case may be and a registry identifica-
tion number;
  (d) contain a photograph of the individual to whom the registry  iden-
tification  card  is being issued, which shall be obtained by the office
in  a  manner  specified  by  the  executive  director  in  regulations;
provided,  however,  that  if  the office requires certified patients to
submit photographs for this purpose, there shall be a reasonable  accom-
modation  of  certified  patients who are confined to their homes due to
their medical conditions and may  therefore  have  difficulty  procuring
photographs;
  (e) be a secure document as determined by the office;
  (f) plainly state any recommendation or limitation by the practitioner
as  to the form or forms of medical cannabis or dosage for the certified
patient; and
  (g) contain any other requirements determined by the executive  direc-
tor.

S. 7509                            73                            A. 9509

  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 or regulations promulgated hereunder 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) name, title, and signature of  an  authorized  facility  represen-
tative;
  (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  reject  an  initial  or  renewal
application.  If  the  application is approved within the 30-day period,
the office shall issue a registration as soon as is reasonably practica-
ble.
  4. 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

S. 7509                            74                            A. 9509

medical  use,  in  accordance  with  minimum operating and recordkeeping
requirements determined by the executive director in regulation.
  2.  The  acquiring,  possession, manufacture, testing, sale, delivery,
transporting, distributing or dispensing of medical cannabis by a regis-
tered organization under this article in accordance with  its  registra-
tion  under this article or a renewal thereof shall be lawful under this
chapter.
  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, in consultation
with the commissioner of health, shall approve the  laboratory  used  by
the  registered  organization, including but not limited to sampling and
testing protocols and standards used by the laboratory, 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   valid identification for that certified patient or designated care-
giver.  When presented with the registry identification card, the regis-
tered 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 desig-
nated caregiver, if any; the date the cannabis was sold; any recommenda-
tion 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,  and  shall  make  such records available to the office upon
demand.
  (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 may
require. When filing receipt  and  certification  information  electron-
ically  pursuant  to  this  paragraph,  the proprietor of the registered
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
as set out in regulation by the executive director.
  (b)  When dispensing medical cannabis to a certified patient or desig-
nated caregiver, the registered organization:  (i) shall not dispense an
amount greater than an amount established by the executive  director  in
regulation; and (ii) shall verify the information in subparagraph (i) of
this  paragraph by consulting the prescription monitoring program regis-
try 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, and any medical
cannabis product or form limitations or restrictions determined  by  the
executive director in regulation.
  6.  When  a  registered  organization  sells, delivers, distributes or
dispenses medical cannabis to a certified patient or designated caregiv-

S. 7509                            75                            A. 9509

er, it shall provide to that individual a safety insert,  which  may  be
developed  by  the registered organization and shall 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, a certificate of good conduct under  article  twenty-
three of the correction law, or an executive pardon.
  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 as  deter-
mined  by  the executive director.   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 organiza-
tion; (b) the packaging date; (c)  any  applicable  date  by  which  the
medical cannabis should be used; (d) a warning stating, "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; (f) a warning that the medical cannabis must  be  kept
in  the  original container in which it was dispensed; and (g) any other
information required by the office.
  13. The board is authorized to make rules and regulations  restricting
the advertising and marketing of medical cannabis.
  14.  The  board is authorized to make rules and regulations regulating
the packaging, labeling, form and method of administration or ingestion,
branding and marketing of medical cannabis products  to  prohibit  acci-
dental or overconsumption.

S. 7509                            76                            A. 9509

  §  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
including those of the applicant's  parent  companies,  subsidiaries  or
affiliates.    Each  such  person, if an individual, or lawful represen-
tative if a legal entity, shall submit an affidavit with the application
setting forth:
  (A) any position of management,  interest,  or  ownership  during  the
preceding ten years of a ten per centum or greater interest in any other
cannabis  business  or  applicant,  located in or outside of this state,
manufacturing or distributing drugs, including indirect interest manage-
ment or ownership of parent companies, subsidiaries, or affiliates;
  (B) whether such person or any such business has had a cannabis  busi-
ness  application  denied  or withdrawn or been convicted of a felony or
had a registration or license subject to administrative action,  includ-
ing  but not limited to violations, penalties, or consent agreements, or
had any registration or license suspended or revoked in any  administra-
tive or judicial proceeding; and
  (C)  such  other  information as the executive director may reasonably
require to enforce the licensing restrictions of this chapter.
  2. The applicant shall be under a continuing  duty  to  seek  approval
from  the office prior to any material changes in ownership, management,
or financial or managerial interest, or prior to substantive operational
changes, and to disclose 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.
  3. (a) The board may grant  a  registration  or  approve  a  requested
amendment to a registration under this section if he or she is satisfied
that:

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  (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 and regulations;
  (iii) the applicant and its officers are ready, willing  and  able  to
properly carry on the manufacturing or distributing activity for which a
registration is sought;
  (iv)  the applicant possesses or has the right to use sufficient land,
buildings and equipment to properly carry on the activity  described  in
the application;
  (v)  it  is  in the public interest that such registration be granted,
including but not limited to:
  (A) whether the number of registered organizations in an area will  be
adequate  or  excessive  to reasonably serve the area's patient need and
demand;
  (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 and interest holders  are
of  good  moral  character and have demonstrated a record and history of
compliance with cannabis laws and regulations in the jurisdictions where
they operate or have operated cannabis licenses and/or registrations;
  (vii) the applicant has entered into a labor peace  agreement  with  a
bona fide labor organization that is actively engaged in representing or
attempting  to  represent the applicant's employees; and the maintenance
of such a labor peace agreement shall be an ongoing  material  condition
of registration; and
  (viii)  the  applicant satisfies any other conditions as determined by
the executive director.
  (b) If the executive director is  not  satisfied  that  the  applicant
should be issued a registration or granted approval to amend an existing
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.
  (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 request shall be determined by
the executive director.

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  4. A registration issued under this section shall  be  valid  for  two
years from the date of issue.
  5.    (a)  An  application  for the renewal of any registration issued
under this section shall be filed with the  office  not  more  than  six
months  nor  less  than  four  months prior to the expiration thereof. A
late-filed application for the renewal of a  registration  may,  in  the
discretion  of  the executive director, be treated as an application for
an initial license.
  (b)  The  application  for  renewal  shall  include  such  information
prepared in the manner and detail as the executive director may require,
including but not limited to:
  (i)  any  material  change  in  the circumstances or factors listed in
subdivision one of this section; and
  (ii) every known charge or investigation, pending or concluded  during
the  period  of  the registration, by any governmental or administrative
agency with respect to:
  (A) each incident or alleged incident involving the  theft,  loss,  or
possible diversion of cannabis manufactured or distributed by the appli-
cant; and
  (B) compliance by the applicant with the laws of any state or territo-
ry  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, and to seek
approval prior to any material change in ownership interest,  management
or operations.
  (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 recommend the board renew a regis-
tration 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 and regu-
lations applicable to the registration  application  and  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 and patient need;
  (iv)  the  applicant has either violated or terminated its labor peace
agreement; or
  (v) the applicant has substantively violated this chapter, regulations
promulgated thereunder, or the laws of  another  jurisdiction  in  which
they operate or have operated a cannabis license or registration.
  (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,  violated  any provision of this
article, or has knowingly or negligently failed to comply with  applica-

S. 7509                            79                            A. 9509

ble  state laws relating to the activities in which it engages under the
registration, may constitute grounds for suspension, revocation or limi-
tation of the registered organization's registration or as determined by
the  executive director. The registered organization shall also be under
a continuing duty to report to the office and seek  prior  approval  for
any  material change or fact or circumstance to the information provided
in the registered organization's application.
  7. The office may suspend or revoke the registration of  a  registered
organization,  on grounds and using procedures under this article relat-
ing to a license, to the extent  consistent  with  this  article.    The
office  shall  suspend  or  revoke  the registration in the event that a
registered organization violates  or  terminates  the  applicable  labor
peace  agreement.  Conduct  in  compliance  with  this article which may
violate conflicting federal law, shall not in and of itself  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  office  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 organization. The
executive director  shall  ensure  that  such  registered  organization,
dispensing  sites  or  approved  delivery  activities are geographically
distributed across the state to satisfy patient and  program  need.  The
executive director may register additional registered organizations.
  § 36. Intentionally omitted.
  §  37. Reports of registered organizations.  1. The executive director
shall require each registered organization to file reports by the regis-
tered 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 require each  registered  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  registered  organiza-
tion, 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, or to aid in, the imple-
mentation 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  board  shall  establish  a
cannabis  research  license that permits a licensee to produce, process,
purchase  and  possess  cannabis  for  the  following  limited  research
purposes:
  (a) to test chemical potency and composition levels;

S. 7509                            80                            A. 9509

  (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 shall 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  subdivision
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  subdivision  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 subdivision.
  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 shall be approved by
the office and meet the requirements of subsection one of this section.
  5. In establishing a cannabis research license, the  board  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 shall
be issued in the name of the applicant, specify the  location  at  which
the  cannabis  researcher  intends to operate, which shall 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

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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/or sell
adult-use cannabis and cannabis products, pursuant to any fees, rules or
conditions  prescribed  by  the board in regulation, but exempt from the
restrictions on licensed adult-use cultivators, processors, and distrib-
utors from having any ownership interest in a licensed adult-use  retail
dispensary  wholly  owned  and controlled by the registered organization
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/or sell adult-use cannabis and to collect the fees gener-
ated  from  such  auction to administer the office's social and economic
equity plan and other duties prescribed by this chapter.
  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.
  4.  Any  registered organization which is licensed to cultivate, proc-
ess, distribute and sell adult-use cannabis and cannabis products pursu-
ant to this section and article four of this chapter, shall be  required
to  maintain  sufficient  supply  and  distribution  of medical cannabis
products for certified patients pursuant to regulations  promulgated  by
the executive director.
  §  41.  Home  cultivation of medical cannabis.   1. Eligible certified
patients or one of their designated caregivers twenty-one years  of  age
or  older may apply for registration with the office to grow and possess
no more than four cannabis plants, as defined by the executive  director
in regulation, per household.
  2. All medical cannabis cultivated at home must be grown and stored in
a  single location in an enclosed, locked space, not open or viewable to
the public. Such homegrown medical cannabis must only be for use by  the
certified patient and may not be distributed, sold, or gifted.
  3.  The  board  shall  develop  rules  and  regulations governing this
section which shall include, but not be limited to:
  (a) the registration of medical cannabis cultivated at home users  and
tracking of individual plants and the cannabis they produce;
  (b)  the  inspection  of medical cannabis cultivated at home to ensure
compliance with possession limits and any building code, fire  code,  or
other applicable state or local laws;
  (c)  restrictions and prohibitions on the unlicensed manufacturing and
processing of medical cannabis products;
  (d) application and eligibility requirements for a patient or  one  of
their  designated  caregivers to qualify and be approved to grow medical
cannabis;
  (e) odor mitigation systems and plans that must be  utilized  for  the
home growing of medical cannabis;
  (f)  systems  and  processes  that  shall  be used to confirm grow and
possession limits compliance with law enforcement officials;
  (g) possession  limit  equivalencies  and  restrictions  on  how  much
harvested  and unused cannabis may be possessed by patients and caregiv-
ers who grow at home;
  (h) the requirement that  any  patient  or  caregiver  who  cultivates
medical  cannabis  at  home  provides  proof  of  ownership  of the grow

S. 7509                            82                            A. 9509

location or written permission from the  owner,  landlord  or  governing
board;
  (i) enforcement of non-compliant cultivation at home including but not
limited to the revocation of any registration or registry identification
card  associated  with  the  patient  and the seizure and destruction of
non-compliant cannabis plants  and  products  and  the  acquisition  and
transfer of cannabis plants;
  (j) cultivation of medical cannabis at home location requirements; and
  (k)  any  other regulations related to cultivation of medical cannabis
at home, the growing infrastructure used, those with access to the site,
or the cannabis material produced.
  4. An eligible designated caregiver approved by the  office  may  only
grow for one patient.
  5.  A  designated  caregiver may not accept any money, fees, consider-
ation, services, or any exchange of value in return  for  their  growing
services.
  6.  Any  person  in  violation  of state law or regulations related to
cultivation of medical cannabis at home shall have any cannabis registry
identification  card,  license,  registration,  or  permit   immediately
revoked  and  shall  be  subject  to  administrative fines and penalties
imposed by the office, as determined in regulation, and shall be subject
to any applicable criminal penalties.
  § 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 or  under  the
influence  of 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.   Upon
specific  request  by  a certified patient to the office, the office may
verify the requesting patient's status as a valid certified  patient  to

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the  patient's  school  or  employer,  to  ensure  compliance  with  the
protections afforded by this section.
  (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 board shall make regulations to implement this
article.
  § 45. Suspend; terminate.  Based upon the recommendation of the execu-
tive  director and/or the superintendent of state police that there is a
risk to the public health or safety, the governor may immediately termi-
nate all licenses issued to registered organizations.
  § 46. Pricing.  1. Every sale of medical cannabis shall be at or below
the price approved by the executive director.    Every  charge  made  or
demanded  for medical cannabis not in accordance with the price approved
by the executive director, is prohibited.
  2. The executive director is hereby authorized to  set  the  per  dose
price  of each form of medical cannabis sold by any registered organiza-
tion. In reviewing the per dose price of each form of medical  cannabis,
the  executive  director  may  consider  the fixed and variable costs of
producing the form of cannabis and any other factor the executive direc-
tor, in his or her discretion, deems relevant in reviewing the per  dose
price of each form of medical cannabis.
  §  47.  Severability.   If any clause, sentence, paragraph, section or
part of this article shall be adjudged by any court of competent  juris-
diction to be invalid, the judgment shall not affect, impair, or invali-
date  the  remainder  thereof, but shall be confined in its operation to
the clause,  sentence,  paragraph,  section  or  part  thereof  directly
involved  in  the  controversy  in  which  the  judgment shall have been
rendered.

                                ARTICLE 4
                           ADULT-USE CANNABIS

Section 60. Licenses issued.
        61. License application.
        62. Information to be requested in applications for licenses.
        63. Fees.
        64. Approval and selection criteria.
        65. Limitations of licensure.
        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 on-site consump-
              tion license.

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        74. On-site  consumption  license;  provisions governing on-site
              consumption licenses.
        75. Record keeping and tracking.
        76. Inspections and ongoing requirements.
        77. Adult-use  cultivators, processors or distributors not to be
              interested in retail dispensaries.
        78. Packaging, labeling, form and  administration  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 and marketing.
        84. Minority, women-owned businesses and disadvantaged  farmers;
              social and economic equity plan.
        85. Regulations.
  §  60.  Licenses  issued.    The  following kinds of licenses shall be
issued by  the  executive  director  for  the  cultivation,  processing,
distribution and sale of cannabis to cannabis consumers:
  1. Adult-use cultivator license;
  2. Adult-use processor license;
  3. Adult-use cooperative license;
  4. Adult-use distributor license;
  5. Adult-use retail dispensary license;
  6. On-site consumption license; and
  7. Any other type of license as prescribed by the board in regulation.
  §  61.  License  Application.  1. Any eligible person may apply to the
office for a license  to  cultivate,  process,  distribute  or  dispense
cannabis  within  this  state for sale during an open application period
and pursuant to regulations promulgated by the office. 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, draft or other forms of payment as the office may require for the
amount required by this article for such license. If the office approves
the  application,  it  may issue a license in such form and through such
process  prescribed  by  the  office.  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 specif-
ically licensed or to  engage  in  any  other  licensed,  registered  or
permitted  activity  within the state, and the address, location, and/or
scope specified by the office.
  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.   Such information may include, but  is  not  limited  to:

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information  about the applicant's identity, including racial and ethnic
background; ownership and investment information, including  the  corpo-
rate   structure;  evidence  of  good  moral  character,  including  the
submission  of fingerprints by the applicant to the division of criminal
justice services; information about the premises to be licensed;  finan-
cial statements; and any other information prescribed by in regulation.
  2.  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.
  3. 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.
  4. If there be any proposed change, after the filing of  the  applica-
tion  or  the  granting of a license, in any of the facts required to be
set forth in  such  application,  a  supplemental  statement  requesting
approval  of  such  change,  cost  and  source  of money involved in the
change, duly verified, shall be submitted to the office  prior  to  such
proposed  change.  Failure to do so shall, if willful and deliberate, be
cause for revocation of the license.
  5. 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 or request connected therewith, and such informa-
tion may be presumed to be correct, and shall be binding upon  a  regis-
tered  organization,  licensee  or  licensed premises as if correct. All
information required to be furnished in such  application,  requests  or
supplemental  statements shall be deemed material in any prosecution for
perjury, any proceeding to revoke or suspend any license,  or  impose  a
fine and in the office's determination to approve or deny the license.
  6.  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.
  7. The office may, in its discretion, wholly prohibit and/or prescribe
specific  criteria under which it will consider and allow limited trans-
fers or changes of ownership, interest, or control during the  registra-
tion  or  license  application  period  and/or  up to two years after an
approved applicant commences licensed activities.
  § 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 to create a competitive process 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, sequence or  priority
of  issuance,  or  any  other  factors  deemed necessary, 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
or annual license fee which shall be non-refundable.  Such  fee  may  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 period, or any  other  factors  deemed
reasonable and appropriate by the office.

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  3.  The office shall have the authority to waive or reduce fees pursu-
ant to this section for social and economic equity applicants.
  §  64.  Approval  and  selection  criteria. 1. The board shall develop
regulations for use by the office  in  determining  whether  or  not  an
applicant  should be approved for and subsequently granted the privilege
of holding an adult-use cannabis license. The criteria for such approval
or subsequent issuance shall be  based  on,  but  not  limited  to,  the
following criteria:
  (a)  the  applicant will be able to maintain effective control against
the illegal diversion or inversion 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) where appropriate and applicable, the applicant possesses  or  has
the right to use, or opportunity to acquire, sufficient land, buildings,
and  equipment to properly carry on the activity described in the appli-
cation;
  (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, scope and character  of  other  licenses  or
approved applicants in proximity to the location or in the state, county
or particular municipality or subdivision thereof as appropriate;
  (iii)  evidence  that  all  necessary  licenses  and permits have been
obtained from the state and all other governing bodies;
  (iv) the history of cannabis or other relevant  regulatory  violations
at  the  proposed location or by the applicant in any relevant jurisdic-
tion, as well as any pattern  of  violations  under  this  chapter,  and
reported criminal activity at the proposed premises;
  (v)  the  effect on the production, price and availability of cannabis
and cannabis products; and
  (vi) any other factors specified by law or regulation that  are  rele-
vant  to  determine  that granting a license would promote public health
and safety and the public interest of the state, county or community;
  (f) the applicant and its managing officers do not have  an  ownership
or  controlling  interest  in  more  licenses,  permits, or the scope of
activity allowed by this chapter, or any regulations  promulgated  here-
under;
  (g)  the  applicant  has  entered  into a labor peace agreement with a
bona-fide labor organization that is actively engaged in representing or
attempting to represent the applicant's employees, and  the  maintenance
of  such  a labor peace agreement shall be an ongoing material condition
of licensure;
  (h) the applicant will contribute to communities,  the  workforce  and
people  disproportionately  harmed  by  cannabis law enforcement through
participation in the social and economic equity plan implemented by  the
office or other suitable means;
  (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 is
eligible to be approved, or subsequently should be issued a license, the

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executive director shall notify the applicant in writing of the specific
reason or reasons for denial.
  §  65.  Limitations  of  licensure.   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 eighteen 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, or any visi-
bly intoxicated person.
  3. No person shall knowingly sell, deliver, or give away or  cause  or
permit or procure to be sold, delivered or given away to a lawful canna-
bis  consumer any amount of cannabis which would cause the lawful canna-
bis consumer to be in violation of the possession limits established  by
this  chapter, or their equivalent as determined by the executive direc-
tor in regulation.
  4. 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.
  5. 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 approved for renewal upon application therefor by the licen-
see  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 unneces-
sary 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  may be dispensed with, provided the applicant for such renewal
shall file a statement with the office to the effect that there has been
no alteration of such premises since the original  license  was  issued.
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. The office shall create a social responsibility framework agreement
and  make  the  adherence  to and fulfillment of such agreement a condi-
tional requirement of license renewal.
  3. The office shall provide an application for renewal  of  a  license
issued under this article not less than ninety days prior to the expira-
tion of the current license.
  4.  The  office  may  only issue a renewal license upon receipt of the
prescribed renewal application and renewal fee from a  licensee  if,  in
addition  to the criteria in this section, the licensee's license is not
under suspension and has not been revoked.
  5. Each applicant must maintain a labor peace agreement with  a  bona-
fide  labor  organization  that  is  actively engaged in representing or
attempting to represent the applicant's employees and the maintenance of
such a labor peace agreement shall be an ongoing material  condition  of
licensure.
  §  67.  Amendments; changes in ownership and organizational structure.
1. Licenses issued pursuant to this article shall specify:
  (a) the name and address of the licensee;
  (b) the activities permitted by the license;
  (c) the land, buildings, facilities, locations or areas  that  may  be
used for the licensed activities of the licensee;
  (d) a unique license number issued by the office to the licensee; and

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  (e) such other information as the executive director shall deem neces-
sary to assure compliance with this chapter.
  2.  Upon  application  to the office, an application or license may be
amended to allow the applicant or 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 appli-
cant or licensee, upon approval by the executive director.  The fee  for
such  amendment  shall  be determined by the executive director in regu-
lation.
  3. A license shall become void by a change in  ownership,  management,
interest, substantial corporate change, location, or material changes in
operations without prior written approval of the executive director. The
executive director may promulgate regulations specifying the process for
amendment  requests  and allowing for certain types of changes in owner-
ship 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 five percent or more of the offi-
cers and/or directors, or a transfer of five percent or more of stock of
such corporation, or an existing stockholder obtaining five  percent  or
more of the stock of such corporation; or
  (b)  for a limited liability company, a change of five percent or more
of the managing members of the company, or a transfer of five percent or
more of ownership interest  in  said  company,  or  an  existing  member
obtaining a cumulative of five 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  board
may  establish  regulations  allowing  licensed adult-use cultivators to
perform certain types of  minimal  processing,  defined  in  regulation,
without the need for an adult-use processor license.
  2. For purposes of this section, cultivation shall include, but not be
limited  to, the planting, growing, cloning, harvesting, drying, curing,
grading and trimming of cannabis.
  3. A person holding an adult-use cultivator's license may  apply  for,
and obtain, one processor's license and one distributor's license.
  4.  A  person  holding  an adult-use cultivator's license may not also
hold a retail dispensary license pursuant to this article and no  adult-
use  cannabis  cultivator  shall  have  a  direct  or indirect interest,
including by stock ownership, interlocking directors, mortgage or  lien,
personal  or real property, management agreement, share parent companies
or affiliate organizations, 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,  provided  that  one adult-use cultivator license may
authorize adult-use cultivation in more than one location.
  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

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retailers,  under  a  single  license.   The board may establish through
regulation microbusiness license  eligibility  criteria  and  production
limits  of total cannabis cultivated, processed and/or distributed annu-
ally 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 an adult-use cannabis  cultivator,  processor,  and  distributor
from  operating on the same premises and from a person holding all three
licenses.
  4. No cannabis processor licensee may  hold  more  than  one  cannabis
processor  license,  provided  a  single license may authorize processor
activities at multiple locations.
  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, management agreement, or through
parent organizations or affiliate entities, 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:
  (a)  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; and
  (b)  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  board  shall  promulgate  regulations  governing  cooperative
licenses,  including,  but  not  limited to, the establishment of canopy
limits and other restrictions on  the  size  and  scope  of  cooperative
licensees.

S. 7509                            90                            A. 9509

  § 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,  adult-use  cooperative,  or  registered  organization
authorized  to  sell adult-use cannabis, to duly licensed retail dispen-
saries.
  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.
  4.  Adult-use  distributor  licensees are subject to minimum operating
requirements as determined by regulation.
  § 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; subject  to
any conditions, limitations or restrictions established by the office.
  3. No person holding a retail dispensary license may also hold or have
any  interest  in  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 cannabis retail license shall be granted for any premises within
five hundred feet of a building occupied exclusively as a school, or two
hundred feet of a church, synagogue or other place of worship.
  §  73. Notification to municipalities of adult-use on-site consumption
license.  1. Adult-use on-site consumption applicants  must  notify  the
municipality  in which the proposed premises is located within ten busi-
ness days of identifying the proposed premises and/or executing a lease,
letter of intent to occupy the premises, or execution of a purchase  and
sale agreement.
  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
proposed  or  secured  premises is located within the boundaries of such
village; 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 proposed or secured premises is

S. 7509                            91                            A. 9509

located shall be considered the appropriate public body to which notifi-
cation shall be given.
  3. Such notification shall be made in such form as shall be prescribed
by the rules of the office.
  4.  Such  notification shall be made in such manner as outlined by the
office in regulation.
  5. 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 shall include applicant, licensee and proposed  or  secured
premises information as determined by the office in regulation.
  §  74.  On-site  consumption  license;  provisions  governing  on-site
consumption licenses.  1. No licensed adult-use cannabis retail  dispen-
sary may be granted a cannabis on-site consumption license for any prem-
ises,  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 within five hundred feet of
a building occupied exclusively as a school, or two hundred  feet  of  a
church, synagogue or other place of worship.
  3.  The office may consider any or all of the following in determining
whether public health, safety, and convenience and the  public  interest
will  be  promoted  by  approving  an  application  or the granting of a
license for an on-site cannabis consumption 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,  scope  and character of other licenses in
proximity to the location and in the particular municipality or subdivi-
sion thereof;
  (c) evidence  that  all  necessary  licenses  and  permits  have  been
obtained from the state and all other governing bodies;
  (d) the history of violations under this chapter, or cannabis laws and
regulations  of  another jurisdiction, and reported criminal activity at
the proposed premises or associated with the applicant; and
  (e) any other factors that, in the judgment of the office,  are  rele-
vant  to  determine that granting a license would promote public health,
safety and convenience and the public interest of the community;
  4. If the office shall deny 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.  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

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the  hours  when the said premises are open for the transaction of busi-
ness.
  6.  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.
  7.  The  office,  in  its discretion, shall have the ability to prior-
itize, or postpone accepting applications  for,  and  the  issuance  of,
on-site  consumption licenses, and/or prioritize or limit the acceptance
and review of applications from  applicant  pools  such  as  social  and
economic equity applicants, consistent with the intent of this chapter.
  8.  The  office  shall  promulgate rules and regulations governing the
minimum operating requirements for on-site consumption licensees.
  § 75. Record keeping and tracking. The  board  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  acquiring,
possession, manufacture, sale, delivery, transporting,  or  distributing
by the licensee.
  §  76. Inspections and ongoing requirements. All licensed or permitted
premises, regardless of the type  of  premises,  and  records  including
financial  statements  and  corporate  documents,  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.  The office shall make reasonable accom-
modations 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 of the requirements of
this article, the regulations promulgated pursuant  thereto,  and  other
applicable  building codes, fire, health, safety, and governmental regu-
lations, including at the municipal, county, and state level and include
any inspector or official of relevant jurisdiction.
  § 77. Adult-use cultivators, processors  or  distributors  not  to  be
interested in retail dispensaries.  1. It shall be unlawful for a culti-
vator, processor, cooperative or distributor licensed under this article
to:
  (a)  be  interested  directly  or indirectly in any premises where any
cannabis product is sold at retail; or in any business devoted wholly or
partially to the sale of any cannabis product at retail by stock  owner-
ship,  interlocking  directors, mortgage or lien or any personal or real
property, or by any other means.
  (b) make, or cause to be made, any loan to any person engaged  in  the
manufacture or sale of any cannabis product at wholesale or retail.
  (c)  make  any  gift  or  render  any  service of any kind whatsoever,
directly or indirectly, to any person licensed under this chapter  which
in  the  judgment  of  the office may tend to influence such licensee to
purchase the product of such cultivator or processor or distributor.
  (d) enter into any contract or  agreement  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  and  any  applicable
administrative enforcement and penalties.

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  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 board shall have the authority to create rules and  regulations
in regard to this section.
  § 78. Packaging, labeling, form and administration of adult-use canna-
bis  products. 1. The board is hereby authorized to promulgate rules and
regulations governing the packaging, labeling, form and method of admin-
istration or ingestion, branding and  marketing  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)  prior  to  delivery  or sale at a retailer, cannabis and cannabis
products shall be labeled according  to  regulations  and  placed  in  a
resealable, child-resistant package; and
  (c)  packages,  labels,  forms  and  products  shall not be made to be
attractive to or target persons under the age of twenty-one.
  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 and may establish
standardized  and/or  uniform  packaging  requirements   for   adult-use
products.
  4. Such rules and regulations shall determine serving sizes for canna-
bis-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 serv-
ing sizes and potency thereof.
  5. Such rules and regulations shall establish approved  product  types
and  forms  and establish an application and review process to determine
the suitability of new product types and forms,  taking  into  consider-
ation  the consumer and public health and safety implications of differ-
ent product varieties, manufacturing processes, product types and forms,
the means and methods of  ingestion  associated  with  specific  product
types,  and any other criteria identified by the board for consideration
to protect public health and safety.
  6. The packaging, sale, labeling, marketing, branding, advertising  or
possession  by  any  licensee  of  any  cannabis  product 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.    Fines
may be imposed on a per violation, per day basis.
  §  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 board may assign an approved testing laboratory, which  the
processor  of  adult-use  cannabis must use, and may establish consortia
with neighboring states, to inform best practices, and share data.
  2. Adult-use cannabis  processors,  cooperatives  and  microbusinesses
shall  make  laboratory  test reports available to licensed distributors

S. 7509                            94                            A. 9509

and retail dispensaries for all cannabis products  manufactured  by  the
processor or licensee.
  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 subject to
regulation; however, such testing shall not be certified by  the  office
and does not exempt the licensee from the requirements of quality assur-
ance testing at a testing laboratory pursuant to this section.
  5.  An  owner of a cannabis laboratory testing permit shall not hold a
license, or interest in 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 and the board may promulgate  regu-
lations related to all aspects of third-party testing and quality assur-
ance including but not limited to:
  (a) minimum testing and sampling requirements;
  (b) testing and sampling methodologies;
  (c) testing reporting requirements;
  (d) retesting; and
  (e) product quarantine, hold, recall, and remediation.
  § 80. Provisions governing the cultivation and processing of adult-use
cannabis.  1.  Cultivation  of  cannabis  shall  comply with regulations
promulgated by the board governing minimum requirements.
  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 or other means of
tracking and identification as may be required by the rules of the exec-
utive director.
  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. The board, in conjunction  with  the  department  of  environmental
conservation,  shall  promulgate all necessary rules and regulations, as
well as a process for approval, governing the safe production of  canna-
bis  including,  but  not limited to, environmental and energy standards
and restrictions on the use of pesticides.
  5. 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.
  6.  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. 7509                            95                            A. 9509

  7. All cannabis products shall be processed in  accordance  with  good
manufacturing  processes  for  the  product category, pursuant to either
Part 111 or Part 117 of Title 21 of the Code of Federal Regulations,  as
may  be  defined and modified by the board in regulation, which shall to
the  extent  practicable  and  possible,  align  with  neighboring state
requirements.
  8. 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.
  9.  The  use  or  integration of wine, beer, liquor or nicotine or any
other substance identified in regulation in cannabis products is prohib-
ited.
  10. The board  shall  promulgate  regulations  governing  the  minimum
requirements for the secure transport of adult-use cannabis.
  § 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 and any other
information required in regulation. Each sale shall  be  recorded  sepa-
rately  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 and any other information required in
regulation. 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 six years and shall be avail-
able 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  board  is authorized to promulgate regulations establishing a
minimum 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 in violation of the established markup  allowed  in  regu-
lation, 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

S. 7509                            96                            A. 9509

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,  financial  statements,  contracts,  corporate  documents,  and
invoices shall be kept for a period of six years and shall be  available
for  inspection  by any authorized representative of the office, includ-
ing, for use in determining the minimum  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 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 or any
visibly intoxicated person.
  2.  No  cannabis  retail  licensee  shall  sell more than one ounce of
adult-use cannabis, or its equivalent  amount  as  determined  in  regu-
lation,  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 as permitted by the office.
  5. No cannabis retail licensee shall sell 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 board.
  6. All premises licensed  under  this  section  shall  be  subject  to
reasonable 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  represen-
tative of the office.
  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.
  8. No cannabis retail licensee shall make or cause to be made any loan
to  any person engaged in the cultivation, processing or distribution of
cannabis pursuant to this article.
  9. Each cannabis retail licensee shall designate  the  price  of  each
item  of  cannabis  by  attaching to or otherwise displaying immediately
adjacent to each such item displayed in the  interior  of  the  licensed
premises where sales are made a price tag, sign or placard setting forth
the price at which each such item is offered for sale therein.
  10.  No  person  licensed  to  sell cannabis products at retail, shall
allow or permit any gambling, or offer  any  gambling  on  the  licensed
premises, or allow or permit illicit drug activity on the licensed prem-
ises.  The use of the licensed premises or any part thereof for the sale
of lottery tickets, when duly authorized and lawfully conducted thereon,
shall not constitute gambling within the meaning of this subdivision.
  11. If an employee of a  cannabis  retail  licensee  suspects  that  a
cannabis consumer may be abusing cannabis, such employee shall encourage
such  cannabis consumer to seek the help of a state licensed facility or
program for the treatment of  cannabis  use  disorder.  Cannabis  retail

S. 7509                            97                            A. 9509

licensees  shall develop standard operating procedures and written mate-
rials for employees to utilize when consulting consumers for purposes of
this subdivision.
  12.  The  board  is  authorized  to  promulgate  regulations governing
licensed adult-use dispensing facilities, including but not limited  to,
minimum general operating requirements, the hours of operation, size and
location of the licensed facility, potency and types of products offered
and  establishing  a  minimum  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.
  13.  No adult-use retail dispensary may engage in the home delivery or
retail delivery of adult-use cannabis products unless they  are  specif-
ically  approved and licensed to do so, or have contracted with a third-
party home delivery licensee. All home delivery operations must be sepa-
rately approved and licensed by the office and must comply with  minimum
application, licensing and operation requirements required by the office
in regulation.
  §  83.  Adult-use cannabis advertising and marketing.  1. The board is
hereby  authorized  to  promulgate  rules  and  regulations   governing,
restricting,  and prohibiting various forms and content of the advertis-
ing and marketing of licensed adult-use cannabis  cultivators,  process-
ors, cooperatives, distributors, retailers, and any cannabis products or
services.
  2.  The  office  shall  promulgate guidelines for appropriate content,
warnings, and means of advertising  and  marketing,  including  but  not
limited to prohibiting advertising that:
  (a) is false, deceptive, or misleading;
  (b) promotes overconsumption;
  (c) depicts consumption;
  (d) is designed in any way to appeal to children or other minors;
  (e)  is  within or is readily observed within five 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;
  (i)  makes medical claims or promotes adult-use cannabis for a medical
or wellness purpose;
  (j) promotes or implements discounts, coupons, or other means of sell-
ing adult-use cannabis products below market  value  or  whose  discount
would subvert local and state tax collections;
  (k)  the  content  and  primary  purpose  of which is not to alert and
educate lawful cannabis consumers about the  availability  of  regulated
adult-use cannabis and displace the illicit market but to solely promote
cannabis use; or
  (l)  fails to satisfy any other advertising or marketing rule or regu-
lations promulgated by the office related to marketing or advertising.
  3. The office shall promulgate guidelines  prohibiting  all  marketing
strategies  and  implementation including, but not limited to, branding,
packaging, labeling, location of cannabis retailers, and  advertisements
that are designed to:
  (a)  appeal  to  persons  under twenty-one years of age and/or at-risk
populations; or
  (b) disseminate false or misleading information to customers.
  4. The office shall promulgate guidelines requiring that:

S. 7509                            98                            A. 9509

  (a) all advertisements and marketing accurately and  legibly  identify
the  licensee  responsible  for its content and contain recognizable and
legible warnings associated with cannabis use; and
  (b)  any  broadcast,  cable,  radio,  print  and digital communication
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.  The  burden  of  proving  this
requirement  lies  with  the  party that has paid for or facilitated the
advertisement.
  5. The office shall establish procedures to  review  and  enforce  all
advertising and marketing requirements.
  §  84.  Minority,  women-owned  businesses  and disadvantaged farmers;
social and economic equity plan.  1. The office shall implement a social
and economic equity plan that  actively  promotes  racial,  ethnic,  and
gender  diversity  in  the  adult-use  cannabis industry and prioritizes
applicants who qualify as a minority and  women-owned  business,  social
equity  applicant,  or disadvantaged farmer and which positively impacts
areas that have been harmed through disproportionate enforcement of  the
war on drugs.
  2.  The  office  shall  create a social and economic equity plan which
promotes diversity in ownership and employment in the adult-use cannabis
industry and the inclusion of:
  (a) minority-owned businesses;
  (b) women-owned businesses;
  (c) social equity applicants as defined in subdivision  four  of  this
section;
  (d)  minority  and  women-owned  businesses, as defined in subdivision
four of this section; and
  (e) disadvantaged farmers, as defined  in  subdivision  four  of  this
section.
  3.  (a)  The social and economic equity plan implemented by the office
shall promote participation and hiring of qualified social and  economic
equity  applicants.  These  applicants  shall be deemed qualified by the
office through criteria determined in this  section  and  by  regulation
promulgated  hereunder.  Once  qualified,  a  social and economic equity
applicant shall be eligible to access all  or  some  of  this  available
social  and  economic  equity plan programs based on their qualification
criteria, which may include but not be limited to:
  (i) priority and  expedited  application  submission  and  review  for
adult-use cannabis licenses;
  (ii) priority or exclusive access to specific classes or categories of
adult-use cannabis licenses and licensed activities;
  (iii)  reduced  or  deferred  fees for adult-use cannabis applications
and/or licenses;
  (iv) priority access to the adult-use cannabis  market  by  being  the
first licensees allowed to commence licensed activities;
  (v)  priority access to the adult-use cannabis market through first or
exclusive access to license locations and geographic areas of operation;
  (vi) access to low or zero interest small  business  loans  for  entry
into the adult-use cannabis market;
  (vii)  access  to  incubator  programs  pairing qualified and eligible
social and economic equity applicants with support in the form of  coun-
seling  services,  education, small business development, and compliance
assistance;

S. 7509                            99                            A. 9509

  (viii) access to cannabis workforce development and hiring initiatives
which incentivize hiring of qualified social and economic  equity  staff
members; and
  (ix)  any  other  available  program or initiative developed under the
office's social and economic equity plan.
  (b) The executive director shall have the ability to  alter  or  amend
the social and economic equity plan, and its programs, to meet the needs
of  qualified  social  and  economic  equity applicants and areas as the
industry grows and evolves.
  (c) Under the social and economic equity plan, the  board  shall  also
have  the  authority  to create and distribute local social and economic
equity impact grants to community-based organizations which are  located
or  operate  in  areas  of  disproportionate enforcement from the war on
drugs. The application for, and administration of  social  and  economic
equity  impact  grants  shall  be determined by the office through regu-
lations, provided sufficient funds are available.
  4. 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:
  (i) at least fifty-one percent owned by  one  or  more  United  States
citizens or permanent resident aliens who are women; and
  (ii)  an  enterprise  in which the ownership interest of such women is
real, substantial and continuing.
  (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

S. 7509                            100                           A. 9509

two-thirds  of  its  federal  gross income as income from farming, in at
least one of the 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.
  (f) "Social equity applicants" shall mean an applicant  for  licensure
or employment that:
  (i)  is  or  has  been a member of a community group or resident of an
area that has been disproportionately impacted  by  the  enforcement  of
cannabis prohibition, as determined by the office in regulation;
  (ii)  has  an income lower than eighty percent of the median income of
the county in which the applicant resides; and
  (iii) was convicted of a marihuana-related offense prior to the effec-
tive date of this chapter or had a parent, guardian,  child,  or  spouse
who,  prior  to  the  effective date of this chapter, was convicted of a
marihuana-related offense.
  5. Licenses issued to minority and women-owned businesses or under the
social and economic equity plan shall not be transferable for  a  period
of  two years except to qualified minority and women-owned businesses or
social and economic  equity  applicants  and  only  upon  prior  written
approval of the executive director.
  § 85. Regulations.  The board shall make regulations to implement this
article.

                                ARTICLE 5
                    CANNABINOID HEMP AND HEMP EXTRACT
Section 90.  Definitions.
        91.  Rulemaking authority.
        92.  Cannabinoid hemp processor license.
        93.  Cannabinoid hemp retailer license.
        94.  Cannabinoid license applications.
        95.  Information to be requested in applications for licenses.
        96.  Fees.
        97.  Selection criteria.
        98.  License renewal.
        99.  Form of license.
        100. Transferability;  amendment to license; change in ownership
               or control.
        101. Granting, suspending or revoking licenses.
        102. Record keeping and tracking.
        103. Packaging  and  labeling  of  cannabinoid  hemp  and   hemp
               extract.
        104. Processing of cannabinoid hemp and hemp extract.
        105. Laboratory testing.
        106. New York hemp product.
        107. Penalties.
        108. Hemp workgroup.
        109. Prohibitions.
        110. Special use permits.
        111. Severability.

S. 7509                            101                           A. 9509

  § 90. Definitions.  As used in this article, the following terms shall
have the following meanings, unless the context clearly requires  other-
wise:
  1.  "Cannabinoid"  means  the phytocannabinoids found in hemp and does
not include synthetic cannabinoids as that term is defined  in  subdivi-
sion (g) of schedule I of section thirty-three hundred six of the public
health law.
  2.  "Cannabinoid  hemp"  means  any  hemp and any product processed or
derived from hemp, that is used for human consumption provided that when
such product is packaged or offered for retail sale to  a  consumer,  it
shall  not have a concentration of more than three-tenths of one percent
delta-9 tetrahydrocannabinol or  a  final  delta-9  tetrahydrocannabinol
concentration  which exceeds an amount determined by the office in regu-
lation.
  3. "Used for human consumption" means intended by the manufacturer  or
distributor  to  be:  (a) used for human consumption for its cannabinoid
content; or (b) used in, on or by the human  body  for  its  cannabinoid
content.
  4.  "Hemp"  means  the  plant  Cannabis sativa L. and any part of such
plant, including the seeds thereof and all derivatives, extracts, canna-
binoids, isomers, acids, salts, and salts of isomers, whether growing or
not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more
than three-tenths of one percent on a dry weight  basis.  It  shall  not
include  "medical  cannabis"  as  defined in subdivision twenty-eight of
section three of this chapter.
  5. "Hemp extract" means all derivatives, extracts, cannabinoids, isom-
ers, acids, salts, and salts of  isomers  derived  from  hemp,  used  or
intended  for  human  consumption,  for  its cannabinoid content, with a
delta-9 tetrahydrocannabinol concentration of not more  than  an  amount
determined by the office in regulation. For the purpose of this article,
hemp  extract  excludes  (a)  any food, food ingredient or food additive
that is generally recognized as safe pursuant to federal law; or (b) any
hemp extract that is not  used  for  human  consumption.  Such  excluded
substances  shall  not  be  regulated pursuant to the provisions of this
article but are subject to other provisions  of  applicable  state  law,
rules and regulations.
  6. "License" means a license issued pursuant to this article.
  7. "Cannabinoid hemp processor license" means a license granted by the
office to process, extract, pack or manufacture cannabinoid hemp or hemp
extract  into  products, whether in intermediate or final form, used for
human consumption.
  8. "Processing"  means  extracting,  preparing,  treating,  modifying,
compounding, manufacturing or otherwise manipulating cannabinoid hemp to
concentrate or extract its cannabinoids, or creating product, whether in
intermediate  or final form, used for human consumption. For purposes of
this article, processing does not  include:  (a)  growing,  cultivation,
cloning,  harvesting,  drying, curing, grinding or trimming when author-
ized pursuant to article twenty-nine of the agriculture and markets law;
or
  (b) mere transportation, such as by common carrier or  another  entity
or individual.
  § 91. Rulemaking authority. The board may make regulations pursuant to
this article for the processing, distribution, marketing, transportation
and  sale  of cannabinoid hemp and hemp extracts used for human consump-
tion, which may include, but not be limited to:

S. 7509                            102                           A. 9509

  1. Specifying forms,  establishing  application,  reasonable  adminis-
tration and renewal fees, or license duration;
  2.  Establishing  the  qualifications  and  criteria for licensing, as
authorized by law;
  3. The books and records to be created and maintained by licensees and
lawful procedures for their inspection;
  4. Any reporting requirements;
  5. Methods  and  standards  of  processing,  labeling,  packaging  and
marketing  of cannabinoid hemp, hemp extract and products derived there-
from;
  6. Procedures for how cannabinoid hemp, hemp extract  or  ingredients,
additives, or products derived therefrom can be deemed as acceptable for
sale in the state;
  7. Provisions governing the modes and forms of administration, includ-
ing inhalation;
  8.  Procedures  for determining whether cannabinoid hemp, hemp extract
or  ingredients,  additives,  or  products  derived  therefrom  produced
outside  the  state  or within the state meet the standards and require-
ments of this article and can therefore be sold within the state;
  9. Procedures for the granting, cancellation, revocation or suspension
of licenses, consistent with the state administrative procedures act;
  10. Restrictions governing the advertising and marketing  of  cannabi-
noid hemp, hemp extract and products derived therefrom; and
  11. Any other regulations necessary to implement this article.
  § 92. Cannabinoid hemp processor license. 1. Persons processing canna-
binoid  hemp  or  hemp  extract  used  for human consumption, whether in
intermediate or final form, shall be required to  obtain  a  cannabinoid
hemp processor license from the department.
  2. A cannabinoid hemp processor license authorizes one or more specif-
ic  activities  related  to  the  processing  of  cannabinoid  hemp into
products used for human consumption, whether in  intermediate  or  final
form,  and  the  distribution  or sale thereof by the licensee.  Nothing
herein shall prevent  a  cannabinoid  hemp  processor  from  processing,
extracting  and  processing  hemp  products  not  to  be  used for human
consumption.
  3. Persons authorized to grow hemp pursuant to article twenty-nine  of
the agriculture and markets law are not authorized to engage in process-
ing  of cannabinoid hemp or hemp extract without first being licensed as
a cannabinoid hemp processor under this article.
  4. This article shall  not  apply  to  hemp,  cannabinoid  hemp,  hemp
extracts  or  products  derived  therefrom  that  are not used for human
consumption. This article also shall  not  apply  to  hemp,  cannabinoid
hemp,  hemp extracts or products derived therefrom that have been deemed
generally recognized as safe pursuant to federal law.
  5. The executive director shall have the authority to  set  reasonable
fees  for  such  license,  to  limit  the  activities  permitted by such
license, to establish the period during which such  license  is  author-
ized,  which  shall  be  two  years or more, and to make rules and regu-
lations necessary to implement this section.
  6. Any person holding an active research  partnership  agreement  with
the  department  of  agriculture and markets, authorizing that person to
process cannabinoid hemp, shall be awarded licensure under this section,
provided that the  research  partner  is  actively  performing  research
pursuant  to  such  agreement and is able to demonstrate compliance with
this article, as determined by the office, after notice and an  opportu-
nity to be heard.

S. 7509                            103                           A. 9509

  § 93. Cannabinoid hemp retailer license. 1. Retailers selling cannabi-
noid  hemp,  in  final  form  to  consumers  within  the state, shall be
required to obtain a cannabinoid hemp retailer license from the office.
  2.  The  executive director shall have the authority to set reasonable
fees for such license, to establish the period during which such license
is authorized, which shall be one year or more, and to  make  rules  and
regulations necessary to implement this section.
  § 94. Cannabinoid  license  applications. 1. Persons shall apply for a
license under this article by submitting  an  application  upon  a  form
supplied  by  the  office, providing all the relevant requested informa-
tion, verified by the applicant or an authorized representative  of  the
applicant.
  2.  A  separate  license  shall be required for each facility at which
processing or retail sales are  conducted;  however,  an  applicant  may
submit one application for separate licensure at multiple locations.
  3.  Each  applicant  shall remit with its application the fee for each
requested license, which shall be a reasonable fee.
  § 95. Information to be requested in applications for licenses. 1. The
executive director may specify the manner and form in which an  applica-
tion shall be submitted to the office for licensure under this article.
  2.  The  executive  director shall prescribe what relevant information
shall be included on an application for licensure  under  this  article.
Such  information  may include, but is not limited to: information about
the applicant's identity; ownership and investment information,  includ-
ing the corporate structure; evidence of good moral character; financial
statements;  information  about the premises to be licensed; information
about the activities to be licensed; and any other relevant  information
prescribed by the executive director.
  3.  All  license  applications  shall be signed by the applicant if an
individual, by a managing partner if a limited liability company, by  an
officer  if  a  corporation,  or  by all partners if a partnership. Each
person signing such application shall verify it as true under the penal-
ties of perjury.
  4. All license applications shall be accompanied by a check, draft  or
other  forms  of  payment  as the office may require or authorize in the
reasonable amount required by this article for such license.
  5. If there be any change, after the filing of the application or  the
granting,  modification  or renewal of a license, in any of the material
facts required to be set  forth  in  such  application,  a  supplemental
statement  giving  notice  of such change, duly verified, shall be filed
with the office within ten days after such change. Failure to do so,  if
willful and deliberate, may be grounds for revocation of the license.
  § 96. Fees.  The office may charge licensees a reasonable license fee.
Such fee may be based on the activities permitted by  the  license,  the
amount  of cannabinoid hemp or hemp extract to be processed or extracted
by the licensee, the gross annual  receipts  of  the  licensee  for  the
previous  license  period, or any other factors reasonably deemed appro-
priate by the office.
  § 97. Selection criteria. 1. The applicant, if an individual or  indi-
viduals,  shall  furnish evidence of the individual's good moral charac-
ter, and if an entity, the applicant shall furnish evidence of the  good
moral  character  of  the  individuals who have or will have substantial
responsibility for the licensed or  authorized  activity  and  those  in
control  of  the  entity, including principals, officers, or others with
such control.

S. 7509                            104                           A. 9509

  2. The applicant shall furnish evidence of the applicant's  experience
and competency, and that the applicant has or will have adequate facili-
ties,  equipment,  process  controls,  and  security  to undertake those
activities for which licensure is sought.
  3.  The applicant shall furnish evidence of his, her or its ability to
comply with all applicable state and local laws, rules and regulations.
  4. 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.
  5. No license pursuant to this article may be issued to an  individual
under the age of eighteen years.
  § 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  reasonable  fee  for such license as specified 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.
  3.  The office shall provide an application for renewal of any 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
specified  renewal  application  and  renewal fee from a licensee if, in
addition to  the  selection  criteria  set  out  in  this  article,  the
licensee's license is not under suspension and has not been revoked.
  § 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 office shall deem necessary to assure
compliance with this chapter.
  § 100. Transferability;  amendment  to license; change in ownership or
control. 1. Licenses issued under this  article  are  not  transferable,
absent written consent of the office.
  2.  Upon application of a licensee, a license may be amended to add or
delete permitted activities.
  3. A license shall become void by a change in  ownership,  substantial
corporate change or change of location without prior written approval of
the office. The board may make regulations allowing for certain types of
changes in ownership without the need for prior written approval.
  § 101. Granting, suspending or revoking licenses. After due notice and
an  opportunity to be heard, which process shall be established by rules
and regulations, the office may decline to grant a new  license,  impose
conditions  or  limits with respect to the grant of a license, modify an
existing license or decline to renew  a  license,  and  may  suspend  or
revoke  a license already granted after due notice and an opportunity to
be heard, as established by rules and regulations, whenever  the  execu-
tive director finds that:
  1. A material statement contained in an application is or was false or
misleading;
  2.  The applicant or licensee, or a person in a position of management
and control thereof or of the licensed  activity,  does  not  have  good
moral  character,  necessary  experience or competency, adequate facili-

S. 7509                            105                           A. 9509

ties, equipment, process controls, or security to  process,  distribute,
transport  or  sell  cannabinoid  hemp, hemp extract or products derived
therefrom;
  3. After appropriate notice and opportunity, the applicant or licensee
has  failed or refused to produce any records or provide any information
required by this article or the regulations promulgated pursuant  there-
to;
  4.  The  licensee has conducted activities outside of those activities
permitted on its license; or
  5. The applicant or licensee, or any officer,  director,  partner,  or
any other person exercising any position of management or control there-
of  or  of the licensed activity has willfully failed to comply with any
of the provisions of this article or regulations under it and other laws
of this state applicable to the licensed activity.
  § 102. Record keeping and tracking. Every licensee shall keep, in such
form as the executive director may direct, such relevant records as  may
be required pursuant to regulations under this article.
  § 103. Packaging and labeling of cannabinoid hemp and hemp extract. 1.
Cannabinoid  hemp  processors  shall  be required to provide appropriate
label warning to consumers, and restricted from making unapproved  label
claims,  as determined by the office, concerning the potential impact on
or benefit to human health resulting from the use of  cannabinoid  hemp,
hemp extract and products derived therefrom for human consumption, which
labels  shall  be affixed to those products when sold, pursuant to rules
and regulations that the office may adopt.
  2. The office may, by rules and  regulations,  require  processors  to
establish  a code, including, but not limited to QR code, for labels and
establish methods and procedures for determining,  among  other  things,
serving sizes or dosages for cannabinoid hemp, hemp extract and products
derived  therefrom,  active  cannabinoid concentration per serving size,
number of servings per container, and the growing region, state or coun-
try of origin if not from the United States. Such rules and  regulations
may  require  an appropriate fact panel that incorporates data regarding
serving sizes and potency thereof.
  3. The packaging, sale, or possession of products derived from  canna-
binoid  hemp  or  hemp extract used for human consumption not labeled or
offered in conformity with  regulations  under  this  section  shall  be
grounds  for the seizure or quarantine of the product, the imposition of
a civil penalty against a processor or  retailer,  and  the  suspension,
revocation or suspension of a license, in accordance with this article.
  § 104. Processing of cannabinoid hemp and hemp extract. 1. No process-
or  shall  sell or agree to sell or deliver in the state any cannabinoid
hemp, hemp extract or product derived therefrom, used for human consump-
tion, 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.  Processors  shall  take  such  steps  necessary to ensure that the
cannabinoid hemp or hemp extract used in their processing operation  has
only been grown with 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, used in compliance with rules, regulations, standards and
guidelines issued by the department of  environmental  conservation  for
pesticides.

S. 7509                            106                           A. 9509

  3.  All  cannabinoid hemp, hemp extract and products derived therefrom
used for human consumption shall be extracted and processed  in  accord-
ance with good manufacturing processes for the product category pursuant
to  Part 117 or Part 111 of title 21 of the code of federal regulations,
as  may  be  defined,  modified and decided upon by the office, provided
that such rules shall be in conformity to the  extent  practicable  with
neighboring states.
  4.  As  necessary  to  protect human health, the office shall have the
authority to: (a) regulate and prohibit specific ingredients, excipients
or methods  used  in  processing  cannabinoid  hemp,  hemp  extract  and
products  derived  therefrom;  and  (b)  prohibit,  or  expressly allow,
certain products or product classes derived  from  cannabinoid  hemp  or
hemp extract, to be processed.
  § 105. Laboratory  testing.  Every  cannabinoid  hemp  processor shall
contract with an independent commercial  laboratory  to  test  the  hemp
extract  and products produced by the licensed processor.  The executive
director, in consultation with the commissioner  of  the  department  of
health,  shall  establish the necessary qualifications or certifications
required for such laboratories used by licensees.  The board is  author-
ized  to issue rules and regulations consistent with this article estab-
lishing the testing required, the reporting of testing results  and  the
form  for  reporting  such  laboratory  testing  results. The office has
authority to require licensees to  submit  any  cannabinoid  hemp,  hemp
extract  or  product  derived  therefrom,  processed or offered for sale
within the state, for testing.  This  section  shall  not  obligate  the
office,  in  any  way, to perform any testing on hemp, cannabinoid hemp,
hemp extract or product derived therefrom. The office shall  be  author-
ized  to  establish consortia or cooperative agreements with neighboring
states to effectuate this section.
  § 106. New York hemp product. The office may establish and adopt offi-
cial grades  and  standards  for  cannabinoid  hemp,  hemp  extract  and
products  derived  therefrom, as he or she may deem advisable, which are
produced for sale in this state and, from time to  time,  may  amend  or
modify such grades and standards.
  § 107. Penalties.  Notwithstanding  the  provision  of  any law to the
contrary, the failure to comply with a requirement of this article, or a
regulation thereunder, may be punishable by a civil penalty of not  more
than  one  thousand  dollars  for  a first violation; not more than five
thousand dollars for a second violation within three years; and not more
than ten thousand dollars for a  third  violation  and  each  subsequent
violation thereafter, within three years.
  § 108. Hemp  workgroup.  The  executive director, in consultation with
the commissioner of the department of agriculture and  markets  and  the
commissioner  of  health,  may  appoint  a  New York state hemp and hemp
extract workgroup, composed of growers, researchers, producers, process-
ors, manufacturers and trade associations, to make  recommendations  for
the  industrial hemp and cannabinoid hemp programs, state, regional, and
federal policies and  policy  initiatives,  and  opportunities  for  the
promotion and marketing of cannabinoid hemp and hemp extract as consist-
ent with federal and state laws, rules and regulations.
  § 109. Prohibitions. 1. Except as authorized by the United States food
and  drug  administration,  the  processing  of cannabinoid hemp or hemp
extract used for human consumption is prohibited within the state unless
the processor is licensed under this article.
  2. Cannabinoid hemp and hemp extracts used for human  consumption  and
grown or processed outside the state shall not be distributed or sold at

S. 7509                            107                           A. 9509

retail  within the state, unless they meet all standards established for
cannabinoid hemp under state law and regulations.
  3.  The  retail  sale  of cannabinoid hemp is prohibited in this state
unless the retailer is licensed under this article.
  § 110. Special use permits. The office shall  have  the  authority  to
issue temporary permits for carrying on any activity related to cannabi-
noid  hemp,  hemp extract and products derived therefrom, licensed under
this article. The executive director may set reasonable  fees  for  such
permits,  to  establish the periods during which such permits are valid,
and to make rules and regulations to implement this section.
  § 111. Severability. If any provision of this article or the  applica-
tion  thereof to any person or circumstances is held invalid, such inva-
lidity shall not affect other provisions or applications of this article
which can be given effect without the invalid provision or  application,
and to this end the provisions of this article are declared to be sever-
able.

                                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.
        132. Municipal control and preemption.
        133. Office to be necessary party to certain proceedings.
        134. Penalties for violation of this chapter.
        135. Revocation  of  registrations,  licenses  and  permits  for
               cause; procedure for revocation or cancellation.
        136. Lawful actions pursuant to this chapter.
        137. Review by courts.
        138. Illicit cannabis.
        139. Injunction for unlawful manufacture, sale, distribution, or
               consumption of cannabis.
        140. Persons forbidden to traffic  cannabis;  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, adult-use cannabis  product,  medical  cannabis  or
cannabinoid  hemp  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 cannabinoid hemp
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

S. 7509                            108                           A. 9509

eighteen years in any capacity where the duties of such  person  require
or permit such person to sell, dispense or handle 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 adult-use cannabis, cannabis product, medical cannabis
or  cannabinoid hemp on credit unless authorized by the executive direc-
tor; except that a registered organization, licensee  or  permittee  may
accept  third  party credit cards for the sale of any cannabis, cannabis
product, medical cannabis or cannabinoid hemp for  which  it  is  regis-
tered, licensed or permitted to dispense or sell to patients or cannabis
consumers. This includes, but is not limited to, any consignment 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
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.

S. 7509                            109                           A. 9509

  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 board 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
cannabinoid  hemp  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
cannabinoid  hemp 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 canna-
binoid hemp which shall be solicited at the residence or place of  busi-
ness  of  a  patient,  caregiver or consumer. This subdivision shall not
prohibit the solicitation by a distributor of an order from any licensee
at the licensed premises of such licensee.
  14. No premises registered,  licensed,  or  permitted  by  the  office
shall:
  (a) permit or allow any gambling on the premises;
  (b) permit or allow the premises to become disorderly;
  (c)  permit or allow the use, by any person, of any fireworks or other
pyrotechnics on the premises; or
  (d) permit or allow to appear as an entertainer, on any  part  of  the
premises registered, licensed, or permitted, any person under the age of
eighteen years.
  § 126. License to be confined to premises licensed; premises for which
no  license shall be granted; transporting cannabis.  1. A registration,
license, or permit issued to any person, pursuant to this  chapter,  for
any  registered, licensed, or permitted premises shall not be transfera-
ble to any other person, to any other location or premises,  or  to  any
other  building or part of the building containing the licensed premises
except in the discretion of the office. All privileges  granted  by  any
registration,  license,  or permit shall be available only to the person
therein specified, and only for  the  premises  licensed  and  no  other
except  if  authorized  by  the  office.    Provided,  however, that the
provisions of this section shall not be deemed to prohibit  an  applica-
tion  or  request for approval for a registration or license as provided

S. 7509                            110                           A. 9509

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 accept an  application  from,  or
issue  a  registration,  license,  or  permit under this chapter to, any
individual, business, or entity connected to the revoked registration or
license, or 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
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, or agent or contractor of a registered  organization,  licensee  or
permittee  shall  be  subject  to arrest, prosecution, or penalty in any

S. 7509                            111                           A. 9509

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 pursuant
to an order of a court of competent jurisdiction.
  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.   An  employer  may  implement  policies  prohibiting  the  use  or
possession of cannabis in accordance with section two hundred  one-d  of
the  labor  law,  provided  such  policies  are in writing as part of an
established workplace policy, uniformly applied to  all  employees,  and
the employer gives prior written notice of such policies to employees.
  5.  An  employer  may  take  disciplinary or adverse employment action
against an employee, including termination of employment, for  violating
an  established  workplace policy adopted under subdivision four of this
section, or if the results of a drug  test  administered  in  accordance
with  applicable  state  and local law demonstrate that the employee was
impaired by or under the influence of cannabis while in the workplace or
during the performance of work. For the purposes of this subdivision,  a
drug  test that solely yields a positive result for cannabis metabolites
shall not be construed as proof that an employee is under the  influence
of  or impaired by cannabis unless the test yields a positive result for
active tetrahydrocannabinol, delta-9-tetrahydrocannabinol,  delta-8-tet-
rahydrocannabinol,  or  other active cannabinoid found in cannabis which
causes impairment.
  6. Nothing in this chapter permits any person to  undertake  any  task
under  the  influence  of cannabis when doing so would constitute negli-
gence or professional malpractice, jeopardize workplace  safety,  or  to
operate,  navigate or be in actual physical control of any motor vehicle
or other transport vehicle, aircraft, motorboat, machinery or equipment,
or firearms under the influence of cannabis.
  7. 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.

S. 7509                            112                           A. 9509

  §  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, in
consultation with the commissioner of health, shall approve  and  permit
one  or  more  independent cannabis testing laboratories to test medical
cannabis, adult-use cannabis and/or cannabinoid hemp.
  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 testing required for
adult-use cannabis, medical cannabis and/or cannabinoid hemp;
  (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 cannabinoid hemp;
  (d) the laboratory is physically located in New York state except  for
laboratories  only  testing  cannabinoid  hemp or as authorized in regu-
lation; and
  (e) the laboratory meets the requirements prescribed by  this  chapter
and by 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.

S. 7509                            113                           A. 9509

  4. The office shall require that the permitted laboratory report test-
ing  results to the office in a manner, form and timeframe as determined
by the executive director.
  5.  The  board  is  authorized  to  promulgate  regulations, requiring
permitted laboratories to perform certain tests and services.
  6. The executive director is authorized to  enter  into  contracts  or
memoranda  of  understanding  with  any  other state for the purposes of
aligning laboratory testing requirements or establishing best  practices
in testing of cannabis.
  §  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.
  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 and/or medical cannabis,  as  a  represen-
tative 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 and/or medical cannabis for a fee or  commission,  for
or on behalf of a person authorized to cultivate, process, 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 and/or medical 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, or medical cannabis at a location not otherwise registered  or
licensed by the office.
  7.  Delivery permit - to authorize licensed adult-use cannabis dispen-
saries or third-parties  to  deliver  adult-use  cannabis  and  cannabis
products directly to cannabis consumers.
  8.  Temporary retail cannabis permit - to authorize the retail sale of
adult-use cannabis to cannabis consumers, for a limited purpose or dura-
tion.
  9. 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.
  10. 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.

S. 7509                            114                           A. 9509

  11. 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,  or to provide specialized or certified ancillary
services  to  support the implementation and purpose of this chapter, in
cases not expressly provided for by this chapter, when in  the  judgment
of the office it would be appropriate and consistent with the policy and
purpose of this chapter.
  § 132. Municipal control and preemption. 1.  The provisions of article
four  of this chapter, authorizing the cultivation, processing, distrib-
ution and sale of adult-use cannabis to cannabis consumers, shall not be
applicable to a county, or city having a population of one hundred thou-
sand or more residents, which adopts a local law,  ordinance  or  resol-
ution  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 jurisdiction of
such county or city.
  2. Except as provided for in subdivision  one  of  this  section,  all
counties,  towns, cities and villages are hereby preempted from adopting
any rule, ordinance, regulation or prohibition pertaining to the  opera-
tion  or  licensure  of  registered  organizations,  adult-use  cannabis
licenses or cannabinoid hemp licenses. However, counties, cities,  towns
and  villages, as applicable, may pass ordinances or regulations govern-
ing the hours of operation and location of licensed  adult-use  cannabis
retail dispensaries, provided such ordinances or regulations do not make
the  operation of such licensed retail dispensaries unreasonably imprac-
ticable.
  3. Local rules, ordinances, regulations or prohibitions enacted  by  a
county,  city,  town, or village shall not require an adult-use cannabis
applicant or licensee to enter into a community host  agreement  or  pay
any  consideration  to the municipality other than reasonable zoning and
permitting fees.
  4. Notwithstanding subdivision one of this section,  adult-use  canna-
bis,  medical cannabis and cannabinoid hemp farming and farm operations,
on land located within an agricultural  district,  shall  be  deemed  an
approved activity under the relevant county, city, town, or village land
use or zoning ordinances, rules, or regulations, inclusive of all neces-
sary  ancillary farm operations as permitted by license pursuant to this
chapter.
  § 133. Office to be necessary  party  to  certain  proceedings.    The
office shall be made a party to all actions and proceedings affecting in
any  manner  the  possession,  ownership  or transfer of a registration,
license or permit to operate within a municipality;  to  all  injunction
proceedings;  and to all other civil actions or proceedings which in any
manner affect the enjoyment of the privileges or the  operation  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 cannabinoid hemp  without  having  an  appropriate  registration,
license  or  permit  therefor, or whose registration, license, or permit
has been revoked, surrendered or cancelled, upon first conviction there-
of shall be guilty of a misdemeanor, punishable by a fine not more  than
five thousand dollars per violation, per day, and upon second conviction
thereof  shall  be  guilty of a class A misdemeanor punishable by a fine
not more than ten thousand dollars per violation, per day, or a sentence
of imprisonment not to  exceed  thirty  days  and  upon  all  subsequent

S. 7509                            115                           A. 9509

convictions  thereof  shall be an E felony punishable by a fine not more
than twenty-five thousand dollars per violation, per day or  a  sentence
of imprisonment not to exceed one year.
  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 cannabinoid
hemp during the suspension period,  upon  conviction  thereof  shall  be
guilty  of  an  A misdemeanor, punishable punished by a fine of not more
than five thousand dollars per violation, per day.
  3. Any person who shall make any false statement  in  the  application
for or renewal of 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.
  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.
  5. Nothing in this section shall prohibit the office from  suspending,
revoking,  or denying a license, permit, registration, or application in
addition to the penalties prescribed herein.
  § 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) the registered organization, licensee, permittee  or  his  or  her
agent  or  employee has sold any illegal cannabis on the premises regis-
tered, licensed or permitted;
  (b) for  transferring,  assigning  or  hypothecating  a  registration,
license or permit without prior written approval of the office;
  (c)  for  failing to follow testing requirements prescribed under this
chapter or falsifying testing results;
  (d) for knowingly distributing  cannabis  products  to  persons  under
twenty-one years of age;
  (e)  for diverting, inverting or trafficking in cannabis to or from an
illegal and unlicensed, registered, or permitted source in violation  of
this chapter; or
  (f)  for  any other violation established in regulation which poses an
imminent and substantial threat to public health, public safety, or  the
integrity of the state's cannabis regulatory structure.
  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  a  license  period
which  occurred  prior  to the issuance of such registration, license or
permit.
  3. (a) As used in this  section,  the  term  "for  cause"  shall  also
include  the  existence of a sustained and continuing pattern of miscon-
duct, failure to adequately prevent diversion or disorder  on  or  about
the  registered, licensed or permitted premises, or in the area in front
of or adjacent to the registered or licensed premises, or in any parking
lot provided by the registered  organization  or  licensee  for  use  by
registered organization or licensee's patrons, which, in the judgment of
the office, adversely affects or tends to affect the protection, health,
welfare,  safety,  or repose of the inhabitants of the area in which the
registered or licensed premises is located, or results in  the  licensed

S. 7509                            116                           A. 9509

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 third 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.
  5.  The denial, revocation, or suspension of any application, license,
permit, or registration issued to or submitted by a person, business, or
entity may also be grounds for the denial, suspension, or revocation  of
any and all other licenses, permits, or registrations applied for by, or
issued  to  said  person,  business, or entity if the executive director
determines it necessary to protect public health and safety or that  the
person,  business,  and/or  entities involved no longer possess the good
moral character required to participate in the cannabis industry.
  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.
  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 by regulation.
  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.  Notwithstanding  any  other  provision of this chapter, the office
may: (a) revoke or refuse to issue any class or type of license, permit,
or registration if it determines that failing to do  so  would  conflict
with  any  federal law or guidance pertaining to regulatory, enforcement
and other systems that states, businesses,  or  other  institutions  may
implement to mitigate the potential for federal intervention or enforce-
ment.  This  provision  shall  not  be construed to prohibit the overall
implementation and administration of this  chapter  on  account  of  the
federal  classification  of  marijuana  or  cannabis  as  a  schedule  I
substance or any other federal prohibitions or restrictions; and

S. 7509                            117                           A. 9509

  (b) the board may adopt rules and regulations based on  federal  guid-
ance,  provided  those rules and regulations are designed to comply with
federal guidance and mitigate federal enforcement against the  registra-
tions,  licenses,  or permits issued under this chapter, or the cannabis
industry as a whole. This may include regulations which permit the shar-
ing  of  licensee,  registrant, or permit holder information with desig-
nated banking or financial institutions, provided these regulations  are
designed  to  aid  cannabis industry participants' access to banking and
financial services.
  § 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 cannabinoid hemp, as permitted by this chapter and consist-
ent  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 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
completed  application for a license, registration or permit, or hearing
submitted to or  held  by  the  office  within  sixty  days  after  such
submission of a completed application or hearing;
  (d)  the  transfer by the office of a registration, license, or permit
to any other entity or premises, or refusal by  the  office  to  approve
such a transfer; and
  (e)  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. 7509                            118                           A. 9509

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  or  medical  cannabis owned, cultivated, distributed,
bought, sold, packaged, rectified, blended, treated,  fortified,  mixed,
processed,  warehoused,  possessed  or  transported,  on  which  any tax
required to have been paid under any applicable state law has  not  been
paid;  or  any  adult-use cannabis or medical cannabis product the form,
packaging, or content of which is not permitted by the office, as appli-
cable.
  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 class 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 class 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, or an equivalent amount as determined by the executive
director in regulation, 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,  distribution,  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
cannabinoid  hemp in this state without obtaining the appropriate regis-
tration, license, or permit  therefor,  or  shall  traffic  in  cannabis
products, medical cannabis or cannabinoid hemp contrary to any provision
of  this  chapter,  or otherwise unlawfully, or shall traffic in illicit
cannabis or, operating either a place for profit or pecuniary gain, or a
not-for-profit basis, 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

S. 7509                            119                           A. 9509

the provisions of this chapter. A copy of such petition or complaint and
order  shall  be  served upon the person, in the manner directed by such
order, not less than three days before the return day  thereof.  On  the
day  specified  in such order, the justice or court before whom the same
is returnable shall hear the proofs of the parties and  may,  if  deemed
necessary  or  proper,  take testimony in relation to the allegations of
the petition or complaint. If the justice or  court  is  satisfied  that
such person is about to engage or participate in the unlawful traffic in
cannabis,  medical cannabis or cannabinoid hemp or has unlawfully culti-
vated, processed, or sold cannabis products, medical cannabis or  canna-
binoid hemp without having obtained a registration or license or contra-
ry  to  the  provisions  of  this  chapter, or has trafficked in illicit
cannabis, 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,
and allowing for the seizure of such illicit cannabis without limit. 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  cannabinoid  hemp,  or  illicit 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 addi-
tion  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 ille-
gal activity and such property shall be subject to  forfeiture  pursuant
to law. Costs upon the application 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 cannabinoid hemp 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.
  3. The gift or transfer of cannabis in conjunction with  the  transfer
of  any  money,  consideration  or  value,  or another item or any other
services in an effort to evade laws, licensing, permitting,  and  regis-
tration  requirements governing the sale of cannabis shall be considered
an unlawful activity under this chapter.
  § 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

S. 7509                            120                           A. 9509

of  corrections  and  community  supervision, or a certificate of relief
from disabilities granted by the department of corrections and community
supervision or a court of this state pursuant to the provisions of arti-
cle  twenty-three  of  the correction law to remove the disability under
this section because of such conviction;
  (b) A person under the age of twenty-one years;
  (c) A person who is not a citizen of the United  States  or  an  alien
lawfully admitted for permanent residence in the United States;
  (d) A partnership or a corporation, unless each member of the partner-
ship,  or  each  of  the  principal officers and directors of the corpo-
ration, is a citizen of the United States or an alien lawfully  admitted
for  permanent  residence in the United States, not less than twenty-one
years of age, and has not  been  convicted  of  any  felony,  or  if  so
convicted  has  received,  subsequent  to  such conviction, an executive
pardon therefor removing this disability a certificate of  good  conduct
granted by the department of corrections and community supervision, or a
certificate  of  relief  from  disabilities granted by the department of
corrections and community supervision or a court of this state  pursuant
to  the  provisions  of  article  twenty-three  of the correction law to
remove the disability under this section  because  of  such  conviction;
provided  however  that  a  corporation  which otherwise conforms to the
requirements of this section and chapter may be licensed if each of  its
principal  officers and more than one-half of its directors are citizens
of the United States or aliens lawfully admitted for permanent residence
in the United States; and provided further that a corporation  organized
under  the  not-for-profit  corporation  law  or the education law which
otherwise conforms to the requirements of this section and  chapter  may
be  licensed if each of its principal officers and more than one-half of
its directors are not less than twenty-one years of age and none of  its
directors are less than eighteen years of age; and provided further that
a  corporation organized under the not-for-profit corporation law or the
education law and located on the premises of a  college  as  defined  by
section  two  of  the  education  law  which  otherwise  conforms to the
requirements of this section and chapter may be licensed if each of  its
principal  officers  and each of its directors are not less than twenty-
one years of age;
  (e) A person who shall have had any  registration  or  license  issued
under  this chapter revoked for cause, until no less than 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 no
less than 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 no less
than 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 may, upon conviction of a felony be auto-
matically forbidden to traffic in cannabis products or medical cannabis,
and the application for a registered organization or license by  such  a
corporation may be subject to denial, and the registration or license of
such  a  corporation  may  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

S. 7509                            121                           A. 9509

court other than a court of this  state,  the  office  may  request  the
department  of  corrections and community supervision to investigate and
review the facts and circumstances concerning  such  a  conviction,  and
such  department  shall,  if  so  requested,  submit its findings to the
office as to whether the corporation has conducted itself  in  a  manner
such  that  discretionary review by the office would not be inconsistent
with the public interest. The department of  corrections  and  community
supervision  may  charge the registered organization, licensee or appli-
cant a fee equivalent to the expenses of  an  appropriate  investigation
under  this  subdivision. For any conviction rendered by a court of this
state, the office may request the corporation,  if  the  corporation  is
eligible  for  a certificate of relief from disabilities, to seek such a
certificate from the court which rendered the conviction and  to  submit
such a certificate as part of the office's discretionary review process.
  2.  Except as may otherwise be provided for in regulation, it shall be
unlawful  for  any  police  commissioner,  police  inspector,   captain,
sergeant,  roundsman,  patrolman or other police official or subordinate
of any police department in the state, to be either  directly  or  indi-
rectly  interested in the cultivation, processing, distribution, or sale
of cannabis products or to offer for sale, or recommend  to  any  regis-
tered  organization  or licensee any cannabis products. A person may not
be denied any registration or license granted under  the  provisions  of
this chapter solely on the grounds of being the spouse of a public serv-
ant  described  in this section. The solicitation or recommendation made
to any registered organization or licensee,  to  purchase  any  cannabis
products by any police official or subordinate as hereinabove described,
shall be presumptive evidence of the interest of such official or subor-
dinate in the cultivation, processing, distribution, or sale of cannabis
products.
  3. No elective village officer shall be subject to the limitations set
forth  in  subdivision  two of this section unless such elective village
officer shall be assigned duties directly relating to the  operation  or
management  of  the  police department or have direct authority over any
applicable local licensing requirements or approvals.
  § 141. Access to criminal history information through the division  of
criminal  justice  services.    In connection with the administration of
this chapter, the office 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 or adult-use cannabis.  At the office'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 processing fees for  the  cost  of
the division's full search and retain procedures and a national criminal
history  record  check.  The executive director, or his or her designee,
shall submit such fingerprints and the processing fee to  the  division.
The  division  shall  forward to the office 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. Fing-
erprints submitted to the division pursuant to this subdivision may also
be submitted to the federal bureau of investigation for a national crim-

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

S. 7509                            123                           A. 9509

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

S. 7509                            124                           A. 9509

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

S. 7509                            125                           A. 9509

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

S. 7509                            126                           A. 9509

  Notwithstanding  any  other  provision of law to the contrary, when an
outsourcing facility distributes or dispenses any  drug  to  any  person
pursuant to a prescription, such outsourcing facility shall be deemed to
be  providing  pharmacy services and shall be subject to all laws, rules
and regulations governing pharmacies and pharmacy services.
  §  5.  Paragraphs  13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
26, 27, 28, 29, 30, 31 and 32  of  subdivision  (d)  of  schedule  I  of
section  3306  of  the public health law, paragraphs 13, 14, 15, 16, 17,
18, 19, 20, 21, 22, 23 and 24 as added by chapter 664  of  the  laws  of
1985,  paragraphs  25,  26, 27, 28, 29 and 30 as added by chapter 589 of
the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
laws of 2006, are amended to read as follows:
  (13) [Marihuana.
  (14)] Mescaline.
  [(15)] (14) Parahexyl. Some trade or other  names:  3-Hexyl-1-hydroxy-
7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
  [(16)] (15)  Peyote.  Meaning all parts of the plant presently classi-
fied botanically as Lophophora williamsii Lemaire,  whether  growing  or
not,  the  seeds  thereof,  any extract from any part of such plant, and
every compound, manufacture, salts, derivative, mixture, or  preparation
of such plant, its seeds or extracts.
  [(17)] (16) N-ethyl-3-piperidyl benzilate.
  [(18)] (17) N-methyl-3-piperidyl benzilate.
  [(19)] (18) Psilocybin.
  [(20)] (19) Psilocyn.
  [(21)] (20)  SYNTHETIC  Tetrahydrocannabinols. [Synthetic] TETRAHYDRO-
CANNABINOLS NOT DERIVED FROM THE CANNABIS PLANT,  OR  TETRAHYDROCANNABI-
NOLS  MANUFACTURED OR CREATED FROM THE CANNABIS PLANT BUT WHICH WERE NOT
PRODUCED BY THE CANNABIS PLANT DURING ITS CULTIVATION OR PRESENT AT  THE
TIME  OF HARVEST 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 struc-
ture 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).
  TETRAHYDROCANNABINOL CREATED OR PRODUCED BY DECARBOXYLATION OF TETRAH-
YDROCANNABINOLIC  ACID  PRODUCED  FROM THE CANNABIS PLANT THROUGH CULTI-
VATION OR PRESENT AT THE TIME OF HARVEST AND/OR ANY U.S. FOOD  AND  DRUG
ADMINISTRATION  APPROVED  PRODUCT  CONTAINING TETRAHYDROCANNABINOL SHALL
NOT BE CONSIDERED A SYNTHETIC TETRAHYDROCANNABINOL.
  [(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).

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  [(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.
  § 6. Title 5-A of article 33 of the public health law is REPEALED.
  § 6-a. Article 29-A of the agriculture and markets 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
tetrahydrocannabinols or a chemical derivative of tetrahydrocannabinol.
  § 9. 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
subdivision 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
cannabis" as those terms are defined in section thirty-three hundred two
of the public health law] ALL PARTS OF THE PLANT OF THE GENUS  CANNABIS,
WHETHER   GROWING  OR  NOT;  THE  SEEDS  THEREOF;  AND  EVERY  COMPOUND,
MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE PLANT,  OR
ITS  SEEDS.  IT  DOES  NOT INCLUDE THE MATURE STALKS OF THE PLANT, FIBER
PRODUCED FROM THE STALKS, OIL OR CAKE MADE FROM THE SEEDS OF THE  PLANT,
ANY   OTHER   COMPOUND,   MANUFACTURE,  SALT,  DERIVATIVE,  MIXTURE,  OR
PREPARATION OF THE MATURE STALKS, FIBER, OIL, OR CAKE, OR THE STERILIZED
SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE
ALL PARTS OF THE PLANT CANNABIS  SATIVA  L.,  WHETHER  GROWING  OR  NOT,

S. 7509                            128                           A. 9509

HAVING  NO  MORE  THAN  THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL
(THC).
  9.  "Hallucinogen"  means  any controlled substance listed in schedule
I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19),  (20)  AND
(21).
  21.  "CONCENTRATED  CANNABIS"  MEANS: (A) THE SEPARATED RESIN, WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A
MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE  WHICH
CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI-
NOL,  OR  ITS  ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1
TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1  (6)  MONOTERPENE  NUMBERING
SYSTEM.
  § 10. Subdivision 4 of section 220.06 of the penal law is REPEALED.
  § 11. Subdivision 10 of section 220.09 of the penal law is REPEALED.
  §  12. 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
  § 13. Intentionally omitted.
  § 14. 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.
  §  15. 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 amended by chapter 131 of
the laws of 2019, is amended to read as follows:
§ 221.05 Unlawful possession  of  [marihuana]  CANNABIS  in  the  second
           degree.
  A  person  is guilty of unlawful possession of [marihuana] CANNABIS in
the second degree when he knowingly and unlawfully  possesses  [marihua-
na.]:
  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 in the second degree is  a
violation  punishable only by a fine of not more than fifty dollars 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 OF CANNABIS OR
LESS THAN TWO AND ONE-HALF GRAMS OF CONCENTRATED CANNABIS 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 OF CANNABIS BUT NOT MORE THAN ONE OUNCE OF CANNA-
BIS, OR MORE THAN TWO AND ONE-HALF GRAMS OF  CONCENTRATED  CANNABIS  BUT
NOT  MORE THAN FIVE GRAMS OF CONCENTRATED CANNABIS.  UNLAWFUL POSSESSION
OF CANNABIS IN THE SECOND DEGREE IS PUNISHABLE BY A  FINE  OF  NOT  MORE

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THAN ONE HUNDRED TWENTY-FIVE DOLLARS WHEN SUCH POSSESSION IS IN A PUBLIC
PLACE  AND  SUCH  CANNABIS IS BURNING. THE TERM "BURNING" SHALL MEAN AND
INCLUDE SMOKING AND VAPING AS SUCH TERMS ARE DEFINED IN SECTION THIRTEEN
HUNDRED NINETY-NINE-N OF THE PUBLIC HEALTH LAW.
  §  16-a.  Subdivision 8 of section 1399-n of the public health law, as
amended by chapter 131 of the laws  of  2019,  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  [marihuana]
CANNABIS  as  defined in section [thirty-three hundred two of this chap-
ter] 220.00 OF THE PENAL 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] UNLAWFUL possession of [marihuana] CANNABIS  in  the
           [fourth] FIRST degree.
  A  person  is  guilty of [criminal] UNLAWFUL possession of [marihuana]
CANNABIS in the [fourth] 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 [two
ounces] ONE OUNCE OF CANNABIS OR MORE THAN FIVE  GRAMS  OF  CONCENTRATED
CANNABIS.
  [Criminal] UNLAWFUL possession of [marihuana] CANNABIS in the [fourth]
FIRST  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.
  A person is guilty of criminal possession of [marihuana]  CANNABIS  in
the  [third]  SECOND  degree  when  he  OR  SHE knowingly and unlawfully
possesses [one or more preparations, compounds, mixtures  or  substances
containing  marihuana  and  the  preparations,  compounds,  mixtures  or
substances are of] an aggregate weight of more than [eight]  TWO  ounces
OF CANNABIS OR MORE THAN TEN GRAMS OF CONCENTRATED CANNABIS.
  Criminal  possession  of  [marihuana]  CANNABIS  in the [third] SECOND
degree is a class [E felony] A MISDEMEANOR PUNISHABLE BY A FINE NOT MORE
THAN ONE HUNDRED TWENTY-FIVE DOLLARS PER OUNCE POSSESSED  IN  EXCESS  OF
TWO  OUNCES  OF CANNABIS OR TEN GRAMS OF CONCENTRATED CANNABIS. 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 IMPRISONMENT 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.

S. 7509                            130                           A. 9509

  § 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.
  § 20-a. Paragraph (c) of subdivision 8 of section 700.05 of the crimi-
nal  procedure  law,  as  amended  by chapter 37 of the laws of 2014, is
amended to read as follows:
  (c) Criminal possession of  a  controlled  substance  in  the  seventh
degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
possession of a controlled substance in the fifth degree as  defined  in
section  220.06  of  the  penal law, criminal possession of a controlled
substance in the fourth degree as defined in section 220.09 of the penal
law, criminal possession of a controlled substance in the  third  degree
as  defined in section 220.16 of the penal law, criminal possession of a
controlled substance in the second degree as defined in  section  220.18
of  the  penal law, criminal possession of a controlled substance in the
first degree as defined in section 220.21 of  the  penal  law,  criminal
sale of a controlled substance in the fifth degree as defined in section
220.31  of the penal law, criminal sale of a controlled substance in the
fourth degree as defined in section 220.34 of the  penal  law,  criminal
sale of a controlled substance in the third degree as defined in section
220.39  of the penal law, criminal sale of a controlled substance in the
second degree as defined in section 220.41 of the  penal  law,  criminal
sale of a controlled substance in the first degree as defined in section
220.43  of  the penal law, criminally possessing a hypodermic instrument
as defined in section 220.45 of  the  penal  law,  criminal  sale  of  a
prescription  for  a controlled substance or a controlled substance by a
practitioner or pharmacist as defined in section  220.65  of  the  penal
law,  criminal  possession  of methamphetamine manufacturing material in
the second degree as defined in section 220.70 of the penal law,  crimi-
nal  possession  of  methamphetamine manufacturing material in the first
degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
possession of precursors of methamphetamine as defined in section 220.72
of  the  penal law, unlawful manufacture of methamphetamine in the third
degree as defined in section 220.73 of the penal law, unlawful  manufac-
ture  of  methamphetamine  in  the  second  degree as defined in section
220.74 of the penal law, unlawful manufacture of methamphetamine in  the
first  degree  as  defined  in section 220.75 of the penal law, unlawful
disposal of methamphetamine laboratory material as  defined  in  section
220.76  of  the penal law, operating as a major trafficker as defined in
section 220.77 of the penal law, [criminal possession  of  marihuana  in
the first degree as defined in section 221.30 of the penal law, criminal
sale  of  marihuana  in the first degree as defined in section 221.55 of
the penal law,] promoting gambling in the second degree  as  defined  in
section  225.05 of the penal law, promoting gambling in the first degree
as defined in section 225.10 of the penal law,  possession  of  gambling

S. 7509                            131                           A. 9509

records  in  the second degree as defined in section 225.15 of the penal
law, possession of gambling records in the first degree  as  defined  in
section  225.20 of the penal law, and possession of a gambling device as
defined in section 225.30 of the penal law;
  §  20-b.  Paragraph (c) of subdivision 4-b and subdivisions 6 and 9 of
section 1310 of the civil practice  law  and  rules,  paragraph  (b)  of
subdivision 4-b as added by chapter 655 of the laws of 1990 and subdivi-
sions  6  and 9 as added by chapter 669 of the laws of 1984, are amended
to read as follows:
  (c) a conviction of a  person  for  a  violation  of  section  220.09,
220.16,  220.34 or 220.39 of the penal law, [or a conviction of a crimi-
nal defendant for a violation of section 221.30 of the  penal  law,]  or
where the accusatory instrument charges any such felony, conviction upon
a  plea of guilty to a felony for which the plea is otherwise authorized
by law, together with evidence which: (i) provides  substantial  indicia
that  the  defendant  used  the  real property to engage in a continual,
ongoing course of conduct involving the  unlawful  mixing,  compounding,
manufacturing,  warehousing,  or  packaging of controlled substances [or
where the conviction is for a violation of section 221.30 of  the  penal
law,  marijuana,]  as part of an illegal trade or business for gain; and
(ii) establishes, where the conviction is for possession of a controlled
substance [or where the conviction is for a violation of section  221.30
of  the  penal law, marijuana], that such possession was with the intent
to sell it.
  6. "Pre-conviction forfeiture crime" means only a  felony  defined  in
article  two  hundred  twenty or section [221.30 or] 221.55 of the penal
law.
  9. "Criminal defendant" means a person who has criminal liability  for
a  crime  defined in subdivisions five and six [hereof] OF THIS SECTION.
For purposes of this article, a person has criminal liability  when  (a)
he  has been convicted of a post-conviction forfeiture crime, or (b) the
claiming authority proves by clear and  convincing  evidence  that  such
person  has  committed an act in violation of article two hundred twenty
or section [221.30 or] 221.55 of the penal law.
  § 20-c. Paragraph (c) of subdivision 7 of section 480.00 of the  penal
law,  as added by chapter 655 of the laws of 1990, is amended to read as
follows:
  (c) a conviction of a  person  for  a  violation  of  section  220.09,
220.16,  220.34[,]  OR 220.39[, or 221.30] of this chapter, or where the
accusatory instrument charges any such felony, conviction upon a plea of
guilty to a felony for which the plea is otherwise  authorized  by  law,
together  with evidence which: (i) provides substantial indicia that the
defendant used the real property  to  engage  in  a  continual,  ongoing
course  of  conduct involving the unlawful mixing, compounding, manufac-
turing, warehousing, or packaging of controlled substances [or where the
conviction is for a violation of section 221.30 of this  chapter,  mari-
juana] as part of an illegal trade or business for gain; and (ii) estab-
lishes, where the conviction is for possession of a controlled substance
[or  where  the  conviction is for a violation of section 221.30 of this
chapter, marijuana], that such possession was with the  intent  to  sell
it.
  §  20-d. Paragraph (c) of subdivision 4 of section 509-cc of the vehi-
cle and traffic law, as amended by chapter 368 of the laws of  2015,  is
amended to read as follows:
  (c)  The  offenses referred to in subparagraph (i) of paragraph (b) of
subdivision one and subparagraph (i) of paragraph (c) of subdivision two

S. 7509                            132                           A. 9509

of this section that result in disqualification for  a  period  of  five
years  shall include a conviction under sections 100.10, 105.13, 115.05,
120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
125.40,  125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55, 140.17,
140.25, 140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06,  220.09,
220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,]  221.50,  221.55,
230.00, 230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20,  235.05,
235.06,  235.07,  235.21,  240.06,  245.00,  260.10,  subdivision two of
section 260.20 and sections  260.25,  265.02,  265.03,  265.08,  265.09,
265.10,  265.12,  265.35 of the penal law or an attempt to commit any of
the aforesaid offenses under section 110.00 of the  penal  law,  or  any
similar  offenses  committed under a former section of the penal law, or
any offenses committed under a former section of  the  penal  law  which
would  constitute violations of the aforesaid sections of the penal law,
or any offenses committed outside  this  state  which  would  constitute
violations of the aforesaid sections of the penal law.
  § 20-e. Subdivision 1 of section 170.56 of the criminal procedure law,
as  amended  by  chapter  360 of the laws of 1977, is amended to read as
follows:
  1.  Upon or after arraignment in a local criminal court upon an infor-
mation, a prosecutor's information or a misdemeanor complaint, where the
sole remaining count or counts  charge  a  violation  or  violations  of
section  221.05, [221.10,] 221.15, 221.35 or 221.40 of the penal law and
before the entry of a plea of guilty thereto or commencement of  a trial
thereof, the court, upon motion of  a  defendant,  may  order  that  all
proceedings  be  suspended  and the action adjourned in contemplation of
dismissal, or upon a finding that adjournment would not be necessary  or
appropriate  and the setting forth in the record of the reasons for such
findings, may dismiss in furtherance of justice the  accusatory  instru-
ment;  provided,  however, that the court may not order such adjournment
in contemplation of dismissal or dismiss the accusatory  instrument  if:
(a)  the  defendant  has  previously  been  granted  such adjournment in
contemplation of dismissal, or (b) the  defendant  has  previously  been
granted  a dismissal under this section, or (c) the defendant has previ-
ously been convicted of any offense involving controlled substances,  or
(d)  the  defendant  has  previously  been  convicted of a crime and the
district attorney does not consent or (e) the defendant  has  previously
been  adjudicated  a  youthful  offender on the basis of any act or acts
involving controlled substances  and  the  district  attorney  does  not
consent.
  §  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:

S. 7509                            133                           A. 9509

§ 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
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] OR AN AGGREGATE  WEIGHT  OF  MORE
THAN  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. IN ANY PROSECUTION FOR UNLAWFUL SALE  OF  CANNABIS  OR
CONCENTRATED  CANNABIS TO SOMEONE UNDER TWENTY-ONE YEARS OF AGE PURSUANT
TO THIS SECTION, IT IS AN AFFIRMATIVE DEFENSE THAT:  (A)  THE  DEFENDANT
HAD  REASONABLE  CAUSE TO BELIEVE THAT THE PERSON UNDER TWENTY-ONE YEARS
OF AGE INVOLVED WAS TWENTY-ONE YEARS OLD OR MORE; AND  (B)  SUCH  PERSON
UNDER  TWENTY-ONE  YEARS OF AGE EXHIBITED TO THE DEFENDANT A DRAFT CARD,
DRIVER'S LICENSE OR IDENTIFICATION  CARD,  BIRTH  CERTIFICATE  OR  OTHER
OFFICIAL  OR  APPARENTLY  OFFICIAL DOCUMENT PURPORTING TO ESTABLISH THAT
SUCH PERSON WAS TWENTY-ONE YEARS OLD OR MORE.
  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

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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
CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI-
ANCE WITH ARTICLE THREE, FOUR OR FIVE OF THE CANNABIS LAW.
  § 27. Intentionally omitted.
  § 28. Paragraph (f) of subdivision 2 of section  850  of  the  general
business law is REPEALED.
  §  29.  Paragraph  (h)  of subdivision 2 of section 850 of the general
business law, as amended by chapter 812 of the laws of 1980, is  amended
to read as follows:
  (h)  Objects, used or designed for the purpose of ingesting, inhaling,
or otherwise introducing [marihuana,] cocaine, hashish, or  hashish  oil
into the human body.
  §  30. Section 114-a of the vehicle and traffic law, as added by chap-
ter 163 of the laws of 1973, is amended to read as follows:
  § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
includes any substance listed in section thirty-three hundred six of the
public  health  law  AND ANY SUBSTANCE OR COMBINATION OF SUBSTANCES THAT
IMPAIR, TO ANY EXTENT, PHYSICAL OR MENTAL ABILITIES.
  § 31. The article heading of article 20-B of the tax law, as added  by
chapter 90 of the laws of 2014, is amended to read as follows:
                EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
  §  32.  The paragraph heading and subparagraph (i) of paragraph (b) of
subdivision 1 of section 1193 of the vehicle and traffic law, as amended
by chapter 169 of the laws of 2013, are amended to read as follows:
  Driving while intoxicated or while ability impaired by drugs or  while
ability  impaired  by  the combined influence of drugs or of alcohol and
any drug or drugs; aggravated  driving  while  intoxicated;  misdemeanor
offenses. (i) A violation of subdivision two, three, OR four [or four-a]
of  section  eleven hundred ninety-two of this article shall be a misde-
meanor and shall be punishable by a fine of not less than  five  hundred
dollars  nor  more  than  one  thousand dollars, or by imprisonment in a
penitentiary or county jail for not more than one year, or by both  such
fine and imprisonment. A violation of paragraph (a) of subdivision two-a
of  section  eleven hundred ninety-two of this article shall be a misde-
meanor and shall be punishable by a fine of not less than  one  thousand
dollars  nor more than two thousand five hundred dollars or by imprison-
ment in a penitentiary or county jail for not more than one year, or  by
both such fine and imprisonment.
  §  33.  Paragraph  (c) of subdivision 1 of section 1193 of the vehicle
and traffic law, as amended by chapter 169  of  the  laws  of  2013,  is
amended by adding a new subparagraph (i-a) to read as follows:
  (I-A)  A  VIOLATION  OF  SUBDIVISION  FOUR-A OF SECTION ELEVEN HUNDRED
NINETY-TWO OF THIS ARTICLE SHALL BE A  CLASS  E  FELONY,  AND  SHALL  BE
PUNISHABLE BY A FINE OF NOT LESS THAN ONE THOUSAND DOLLARS NOR MORE THAN

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FIVE  THOUSAND DOLLARS OR BY A PERIOD OF IMPRISONMENT AS PROVIDED IN THE
PENAL LAW, OR BY BOTH SUCH FINE AND IMPRISONMENT.
  §  33-a.  Subdivisions  1,  2 and 3 of section 1194 of the vehicle and
traffic law, as added by chapter 47 of the laws of 1988,  paragraph  (a)
of  subdivision  2  as amended by chapter 196 of the laws of 1996, para-
graphs (b) and (c) of subdivision 2 as amended by  chapter  489  of  the
laws  of  2017,  clause  (A) of subparagraph 1, subparagraphs 2 and 3 of
paragraph (b), subparagraphs 1, 2 and 3 of paragraph (c) of  subdivision
2 as amended by chapter 27 of the laws of 2018, subparagraphs 1 and 2 of
paragraph  (d) of subdivision 2 as amended by chapter 732 of the laws of
2006, and item (iii) of clause c of subparagraph 1 of paragraph  (d)  of
subdivision  2  as amended by section 37 of part LL of chapter 56 of the
laws of 2010,  are amended to read as follows:
  1.  Arrest  and  field  testing.  (a)  Arrest.    Notwithstanding  the
provisions  of  section  140.10  of the criminal procedure law, a police
officer may, without a warrant, arrest a person, in case of a  violation
of subdivision one of section eleven hundred ninety-two of this article,
if such violation is coupled with an accident or collision in which such
person  is involved, which in fact has been committed, though not in the
police officer's presence, when the  officer  has  reasonable  cause  to
believe that the violation was committed by such person.
  (b)  Field  testing.  Every person operating a motor vehicle which has
been involved in an accident or which is operated in violation of any of
the provisions of this chapter shall, at the request of a  police  offi-
cer, submit to a breath test AND/OR ORAL/BODILY FLUID to be administered
by  the  police  officer,  AND/OR TO AN EVALUATION BY A DRUG RECOGNITION
EXPERT OR ADVANCE ROADSIDE IMPAIRMENT  DETECTION  ENFORCEMENT  CERTIFIED
OFFICER.  If such test indicates that such operator has consumed alcohol
OR DRUG OR DRUGS, the police officer may request such operator to submit
to a chemical test OR AN EVALUATION  CONDUCTED  BY  A  DRUG  RECOGNITION
EXPERT  OR  ADVANCE  ROADSIDE IMPAIRMENT DETECTION ENFORCEMENT CERTIFIED
OFFICER in the manner set forth in subdivision two of this section.
  2. Chemical AND DRUG  RECOGNITION  tests.  (a)  When  authorized.  Any
person  who  operates  a  motor vehicle in this state shall be deemed to
have given consent to AN EVALUATION  CONDUCTED  BY  A  DRUG  RECOGNITION
EXPERT  OR  ADVANCE  ROADSIDE IMPAIRMENT DETECTION ENFORCEMENT CERTIFIED
OFFICER OR ANY PORTION THEREOF AND/OR a chemical test of one or more  of
the  following:  breath,  blood,  urine,  or  saliva, for the purpose of
determining the alcoholic and/or drug content of the blood provided that
such test is administered by or at the direction  of  a  police  officer
with  respect  to  a  chemical  test of breath, urine or saliva or, with
respect to a chemical test of blood, at the direction of a police  offi-
cer:
  (1)  having  reasonable  grounds  to  believe such person to have been
operating in violation of any  subdivision  of  section  eleven  hundred
ninety-two  of  this  article and within two hours after such person has
been placed under arrest for any such violation;  or  having  reasonable
grounds  to  believe  such person to have been operating in violation of
section eleven hundred ninety-two-a of this article and within two hours
after the stop of such person for any such violation,
  (2) within two hours after a breath test AND/OR ORAL/BODILY FLUID,  OR
AN EVALUATION CONDUCTED BY A DRUG RECOGNITION EXPERT OR ADVANCE ROADSIDE
IMPAIRMENT DETECTION ENFORCEMENT CERTIFIED OFFICER, as provided in para-
graph  (b)  of  subdivision  one of this section, indicates that alcohol
AND/OR DRUG OR DRUGS, has been consumed by such person and in accordance

S. 7509                            136                           A. 9509

with the rules and regulations established by the police force of  which
the officer is a member;
  (3)  for  the  purposes  of  this  paragraph,  "reasonable grounds" to
believe that a person has been operating a motor  vehicle  after  having
consumed alcohol in violation of section eleven hundred ninety-two-a, OR
ALCOHOL AND/OR DRUG OR DRUGS IN VIOLATION OF ANY OTHER SECTION OF ELEVEN
HUNDRED  NINETY-TWO,  of this article shall be determined by viewing the
totality of circumstances surrounding the  incident  which,  when  taken
together,  indicate  that  the operator was driving in violation of such
subdivision. Such circumstances may include any  visible  or  behavioral
indication  of alcohol AND/OR DRUG OR DRUGS consumption by the operator,
the existence of an open container containing  or  having  contained  an
alcoholic  beverage AND/OR DRUG OR DRUGS in or around the vehicle driven
by the operator, THE ODOR OF CANNABIS OR BURNT CANNABIS,  or  any  other
evidence  surrounding  the circumstances of the incident which indicates
that the operator has  been  operating  a  motor  vehicle  after  having
consumed alcohol AND/OR DRUG OR DRUGS at the time of the incident; or
  (4)  notwithstanding  any  other  provision of law to the contrary, no
person under the age of twenty-one shall  be  arrested  for  an  alleged
violation  of  section  eleven  hundred  ninety-two-a  of  this article.
However, a person under the age of twenty-one for whom a  chemical  test
OR AN EVALUATION CONDUCTED BY A DRUG RECOGNITION EXPERT OR ADVANCE ROAD-
SIDE  IMPAIRMENT  DETECTION  ENFORCEMENT CERTIFIED OFFICER is authorized
pursuant to this paragraph may be temporarily  detained  by  the  police
solely for the purpose of requesting or administering such chemical test
whenever  arrest  without a warrant for a petty offense would be author-
ized in accordance with the provisions of section 140.10 of the criminal
procedure law or paragraph (a) of subdivision one of this section.
  (b) Report of refusal. (1) If: (A)  such  person  having  been  placed
under arrest; or (B) after a breath test indicates the presence of alco-
hol AND/OR DRUG OR DRUGS in the person's system; or (C) with regard to a
person  under  the  age  of  twenty-one, there are reasonable grounds to
believe that such person has been operating a motor vehicle after having
consumed alcohol in violation of section eleven hundred ninety-two-a  of
this  article;  and  having  thereafter been requested to submit to such
chemical test OR AN EVALUATION CONDUCTED BY A DRUG RECOGNITION EXPERT OR
ADVANCE ROADSIDE IMPAIRMENT DETECTION ENFORCEMENT CERTIFIED OFFICER  and
having  been  informed  that the person's license or permit to drive and
any non-resident operating privilege shall be immediately suspended  and
subsequently  revoked, or, for operators under the age of twenty-one for
whom there are reasonable grounds to believe that such operator has been
operating a motor vehicle after having consumed alcohol in violation  of
section  eleven  hundred  ninety-two-a of this article, shall be revoked
for refusal to submit to such chemical test or any portion  thereof,  OR
AN EVALUATION CONDUCTED BY A DRUG RECOGNITION EXPERT OR ADVANCE ROADSIDE
IMPAIRMENT DETECTION ENFORCEMENT CERTIFIED OFFICER OR ANY PORTION THERE-
OF,  whether  or  not the person is found guilty of the charge for which
such person is arrested or detained, refuses to submit to such  chemical
test or any portion thereof, OR AN EVALUATION CONDUCTED BY A DRUG RECOG-
NITION  EXPERT  OR  ADVANCE  ROADSIDE  IMPAIRMENT  DETECTION ENFORCEMENT
CERTIFIED OFFICER OR ANY PORTION THEREOF, unless a court order has  been
granted  pursuant  to  subdivision three of this section, the test shall
not be given and a written report of such refusal shall  be  immediately
made  by  the  police  officer  before  whom such refusal was made. Such
report may be verified by having the report sworn to, or by affixing  to
such report a form notice that false statements made therein are punish-

S. 7509                            137                           A. 9509

able  as  a  class A misdemeanor pursuant to section 210.45 of the penal
law and such form notice together with the subscription of the  deponent
shall constitute a verification of the report.
  (2)  The  report  of  the  police  officer  shall set forth reasonable
grounds to believe such arrested person or such  detained  person  under
the  age  of twenty-one had been driving in violation of any subdivision
of section eleven hundred ninety-two or eleven hundred  ninety-two-a  of
this  article,  that  said person had refused to submit to such chemical
test, OR AN EVALUATION CONDUCTED BY A DRUG RECOGNITION EXPERT OR ADVANCE
ROADSIDE IMPAIRMENT  DETECTION  ENFORCEMENT  CERTIFIED  OFFICER  OR  ANY
PORTION  THEREOF, and that no chemical test OR EVALUATION CONDUCTED BY A
DRUG  RECOGNITION  EXPERT  OR  ADVANCE  ROADSIDE  IMPAIRMENT   DETECTION
ENFORCEMENT  CERTIFIED OFFICER was administered pursuant to the require-
ments of  subdivision  three  of  this  section.  The  report  shall  be
presented to the court upon arraignment of an arrested person, provided,
however, in the case of a person under the age of twenty-one, for whom a
test  was  authorized  pursuant to the provisions of subparagraph two or
three of paragraph (a) of this subdivision, and who has not been  placed
under  arrest for a violation of any of the provisions of section eleven
hundred ninety-two of this article, such report shall  be  forwarded  to
the  commissioner  within forty-eight hours in a manner to be prescribed
by the commissioner, and  all  subsequent  proceedings  with  regard  to
refusal  to  submit to such chemical test by such person shall be as set
forth in subdivision three of section eleven  hundred  ninety-four-a  of
this article.
  (3) For persons placed under arrest for a violation of any subdivision
of  section  eleven  hundred  ninety-two of this article, the license or
permit to drive and any non-resident operating privilege shall, upon the
basis of such written report, be  temporarily  suspended  by  the  court
without  notice  pending  the  determination of a hearing as provided in
paragraph (c) of this subdivision. Copies of such report must be  trans-
mitted  by the court to the commissioner and such transmittal may not be
waived even with the consent of all the parties. Such  report  shall  be
forwarded  to the commissioner within forty-eight hours of such arraign-
ment.
  (4) The court or the police officer, in the case of a person under the
age of twenty-one alleged to be driving after having  consumed  alcohol,
shall  provide such person with a scheduled hearing date, a waiver form,
and such other information as may be required by the commissioner. If  a
hearing, as provided for in paragraph (c) of this subdivision, or subdi-
vision three of section eleven hundred ninety-four-a of this article, is
waived  by  such  person,  the commissioner shall immediately revoke the
license, permit, or non-resident operating privilege, as of the date  of
receipt  of  such  waiver in accordance with the provisions of paragraph
(d) of this subdivision.
  (c) Hearings. Any person whose license or permit to drive or any  non-
resident  driving privilege has been suspended pursuant to paragraph (b)
of this subdivision is entitled to a hearing in accordance with a  hear-
ing  schedule  to  be promulgated by the commissioner. If the department
fails to provide for such hearing fifteen days after  the  date  of  the
arraignment  of  the  arrested  person,  the license, permit to drive or
non-resident operating privilege of  such  person  shall  be  reinstated
pending a hearing pursuant to this section. The hearing shall be limited
to  the  following  issues:  (1)  did the police officer have reasonable
grounds to believe that such person had been driving in violation of any
subdivision of section eleven hundred ninety-two of  this  article;  (2)

S. 7509                            138                           A. 9509

did the police officer make a lawful arrest of such person; (3) was such
person given sufficient warning, in clear or unequivocal language, prior
to such refusal that such refusal to submit to such chemical test or any
portion  thereof OR AN EVALUATION CONDUCTED BY A DRUG RECOGNITION EXPERT
OR ADVANCE ROADSIDE IMPAIRMENT DETECTION ENFORCEMENT  CERTIFIED  OFFICER
OR  ANY  PORTION  THEREOF,  would result in the immediate suspension and
subsequent revocation of such person's license  or  operating  privilege
whether  or  not such person is found guilty of the charge for which the
arrest was made; and (4) did such person refuse to submit to such chemi-
cal test or any portion thereof OR AN EVALUATION  CONDUCTED  BY  A  DRUG
RECOGNITION  EXPERT OR ADVANCE ROADSIDE IMPAIRMENT DETECTION ENFORCEMENT
CERTIFIED OFFICER OR ANY PORTION THEREOF. If, after  such  hearing,  the
hearing  officer, acting on behalf of the commissioner, finds on any one
of said issues in the negative, the hearing  officer  shall  immediately
terminate any suspension arising from such refusal. If, after such hear-
ing, the hearing officer, acting on behalf of the commissioner finds all
of  the issues in the affirmative, such officer shall immediately revoke
the license or permit to drive or any non-resident  operating  privilege
in  accordance with the provisions of paragraph (d) of this subdivision.
A person who has had a license or permit to drive or non-resident  oper-
ating  privilege  suspended  or revoked pursuant to this subdivision may
appeal the findings of  the  hearing  officer  in  accordance  with  the
provisions  of article three-A of this chapter. Any person may waive the
right to a hearing under this section. Failure by such person to  appear
for  the  scheduled  hearing  shall constitute a waiver of such hearing,
provided, however, that such person may petition the commissioner for  a
new hearing which shall be held as soon as practicable.
  (d)  Sanctions. (1) Revocations. a. Any license which has been revoked
pursuant to paragraph (c) of this subdivision shall not be restored  for
at  least  one year after such revocation, nor thereafter, except in the
discretion of the  commissioner.  However,  no  such  license  shall  be
restored  for at least eighteen months after such revocation, nor there-
after except in the discretion of the commissioner, in  any  case  where
the  person  has had a prior revocation resulting from refusal to submit
to a chemical test OR AN EVALUATION  CONDUCTED  BY  A  DRUG  RECOGNITION
EXPERT  OR  ADVANCE  ROADSIDE IMPAIRMENT DETECTION ENFORCEMENT CERTIFIED
OFFICER OR ANY PORTION THEREOF, or has been convicted of or found to  be
in  violation of any subdivision of section eleven hundred ninety-two or
section eleven hundred ninety-two-a of this article not arising  out  of
the  same incident, within the five years immediately preceding the date
of such revocation; provided, however, a prior  finding  that  a  person
under  the  age  of  twenty-one has refused to submit to a chemical test
pursuant to subdivision three of section eleven hundred ninety-four-a of
this article shall have the same effect as a prior finding of a  refusal
pursuant  to  this subdivision solely for the purpose of determining the
length of any license suspension or revocation required  to  be  imposed
under  any  provision  of  this  article,  provided  that the subsequent
offense or refusal is committed or occurred prior to the  expiration  of
the  retention  period  for such prior refusal as set forth in paragraph
(k) of subdivision one of section two hundred one of this chapter.
  b. Any license which has been revoked pursuant  to  paragraph  (c)  of
this  subdivision  or  pursuant  to  subdivision three of section eleven
hundred ninety-four-a of this article, where the holder  was  under  the
age  of  twenty-one  years  at  the  time  of such refusal, shall not be
restored for at least one year, nor thereafter, except in the discretion
of the commissioner. Where such person under the age of twenty-one years

S. 7509                            139                           A. 9509

has a  prior  finding,  conviction  or  youthful  offender  adjudication
resulting  from  a  violation  of  section  eleven hundred ninety-two or
section eleven hundred ninety-two-a of this article,  not  arising  from
the  same  incident, such license shall not be restored for at least one
year or until such person reaches the age of twenty-one years, whichever
is the greater period of time, nor thereafter, except in the  discretion
of the commissioner.
  c.  Any commercial driver's license which has been revoked pursuant to
paragraph (c) of this subdivision based upon a  finding  of  refusal  to
submit  to a chemical test OR AN EVALUATION CONDUCTED BY A DRUG RECOGNI-
TION EXPERT OR ADVANCE ROADSIDE IMPAIRMENT DETECTION ENFORCEMENT  CERTI-
FIED OFFICER OR ANY PORTION THEREOF, where such finding occurs within or
outside  of  this  state,  shall  not  be restored for at least eighteen
months after such revocation, nor thereafter, except in  the  discretion
of  the commissioner, but shall not be restored for at least three years
after such revocation, nor thereafter, except in the discretion  of  the
commissioner,  if  the holder of such license was operating a commercial
motor vehicle transporting hazardous  materials  at  the  time  of  such
refusal.  However,  such  person  shall be permanently disqualified from
operating a commercial motor vehicle in any case where the holder has  a
prior  finding  of refusal to submit to a chemical test OR AN EVALUATION
CONDUCTED BY A DRUG RECOGNITION EXPERT OR  ADVANCE  ROADSIDE  IMPAIRMENT
DETECTION  ENFORCEMENT CERTIFIED OFFICER OR ANY PORTION THEREOF pursuant
to this section or has a  prior  conviction  of  any  of  the  following
offenses:  any  violation  of  section eleven hundred ninety-two of this
article; any violation of subdivision one or two of section six  hundred
of  this  chapter; or has a prior conviction of any felony involving the
use of a motor vehicle pursuant to paragraph (a) of subdivision  one  of
section  five  hundred  ten-a of this chapter. Provided that the commis-
sioner may waive such permanent revocation after a period of  ten  years
has expired from such revocation provided:
  (i) that during such ten year period such person has not been found to
have refused a chemical test OR AN EVALUATION CONDUCTED BY A DRUG RECOG-
NITION  EXPERT  OR  ADVANCE  ROADSIDE  IMPAIRMENT  DETECTION ENFORCEMENT
CERTIFIED OFFICER; OR ANY PORTION THEREOF pursuant to this  section  and
has  not  been  convicted  of  any  one  of  the following offenses: any
violation of section eleven hundred ninety-two of this article;  refusal
to submit to a chemical test OR AN EVALUATION CONDUCTED BY A DRUG RECOG-
NITION  EXPERT  OR  ADVANCE  ROADSIDE  IMPAIRMENT  DETECTION ENFORCEMENT
CERTIFIED OFFICER OR ANY PORTION THEREOF pursuant to this  section;  any
violation of subdivision one or two of section six hundred of this chap-
ter;  or  has  a  prior  conviction of any felony involving the use of a
motor vehicle pursuant to paragraph (a) of subdivision  one  of  section
five hundred ten-a of this chapter;
  (ii) that such person provides acceptable documentation to the commis-
sioner  that  such person is not in need of alcohol or drug treatment or
has satisfactorily completed a prescribed course of such treatment; and
  (iii) after such documentation is accepted, that such person is grant-
ed a certificate of relief from disabilities or a  certificate  of  good
conduct  pursuant  to  article twenty-three of the correction law by the
court in which such person was last penalized.
  d. Upon a third finding of refusal and/or conviction  of  any  of  the
offenses  which  require a permanent commercial driver's license revoca-
tion, such permanent revocation may not be waived  by  the  commissioner
under any circumstances.

S. 7509                            140                           A. 9509

  (2)  Civil  penalties.  Except as otherwise provided, any person whose
license, permit to drive, or any  non-resident  operating  privilege  is
revoked  pursuant to the provisions of this section shall also be liable
for a civil penalty in the amount of five hundred dollars except that if
such  revocation  is  a second or subsequent revocation pursuant to this
section issued within a five  year  period,  or  such  person  has  been
convicted  of  a  violation of any subdivision of section eleven hundred
ninety-two of this article within the past five years not arising out of
the same incident, the civil penalty shall be in  the  amount  of  seven
hundred  fifty  dollars. Any person whose license is revoked pursuant to
the provisions of this section based upon a finding of refusal to submit
to a chemical test while operating a commercial motor vehicle shall also
be liable for a civil penalty of five hundred fifty dollars except  that
if such person has previously been found to have refused a chemical test
OR AN EVALUATION CONDUCTED BY A DRUG RECOGNITION EXPERT OR ADVANCE ROAD-
SIDE  IMPAIRMENT  DETECTION ENFORCEMENT CERTIFIED OFFICER OR ANY PORTION
THEREOF pursuant to this section  while  operating  a  commercial  motor
vehicle or has a prior conviction of any of the following offenses while
operating  a  commercial  motor vehicle: any violation of section eleven
hundred ninety-two of this article; any violation of subdivision two  of
section  six  hundred  of this chapter; or has a prior conviction of any
felony involving the use of a commercial motor vehicle pursuant to para-
graph (a) of subdivision one of section five hundred ten-a of this chap-
ter, then the civil penalty shall be seven hundred fifty dollars. No new
driver's license or permit shall be issued,  or  non-resident  operating
privilege restored to such person unless such penalty has been paid. All
penalties collected by the department pursuant to the provisions of this
section  shall  be  the property of the state and shall be paid into the
general fund of the state treasury.
  (3) Effect of rehabilitation program. No period of revocation  arising
out  of this section may be set aside by the commissioner for the reason
that such person was a participant in the  alcohol  and  drug  rehabili-
tation  program  set  forth in section eleven hundred ninety-six of this
article.
  (e) Regulations. The commissioner  shall  promulgate  such  rules  and
regulations as may be necessary to effectuate the provisions of subdivi-
sions one and two of this section.
  (f) Evidence. Evidence of a refusal to submit to such chemical test or
any  portion  thereof  OR  AN EVALUATION CONDUCTED BY A DRUG RECOGNITION
EXPERT OR ADVANCE ROADSIDE IMPAIRMENT  DETECTION  ENFORCEMENT  CERTIFIED
OFFICER  shall  be  admissible in any trial, proceeding or hearing based
upon a violation of the provisions of section eleven hundred  ninety-two
of this article but only upon a showing that the person was given suffi-
cient  warning, in clear and unequivocal language, of the effect of such
refusal and that the person persisted in the refusal.
  (g) Results. Upon the request  of  the  person  who  was  tested,  the
results of such test shall be made available to such person.
  3.  Compulsory  chemical  tests.  (a)  Court  ordered  chemical tests.
Notwithstanding the provisions of subdivision two of  this  section,  no
person  who  operates a motor vehicle in this state may refuse to submit
to a chemical test of one or more of the following: breath, blood, urine
or saliva, for the purpose of  determining  the  alcoholic  and/or  drug
content  of the blood when a court order for such chemical test has been
issued in accordance with the provisions of this subdivision.
  (b) When authorized. Upon refusal by any person to submit to a  chemi-
cal  test  or any portion thereof as described above, the test shall not

S. 7509                            141                           A. 9509

be given unless a police officer or a district attorney, as  defined  in
subdivision  thirty-two  of  section 1.20 of the criminal procedure law,
requests and obtains a court order to compel a person  to  submit  to  a
chemical test to determine the alcoholic or drug content of the person's
blood upon a finding of reasonable cause to believe that:
  (1) such person was the operator of a motor vehicle [and in the course
of  such  operation  a  person  other  than  the  operator was killed or
suffered serious physical injury as defined  in  section  10.00  of  the
penal law]; and
  (2)  a.  either  such  person operated the vehicle in violation of any
subdivision of section eleven hundred ninety-two of this article, or  b.
a  breath AND/OR ORAL/BODILY FLUID test administered by a police officer
in accordance with paragraph (b) of  subdivision  one  of  this  section
indicates that alcohol has been consumed by such person; and
  (3) such person has been placed under lawful arrest; and
  (4)  such  person  has  refused  to  submit  to a chemical test or any
portion thereof, requested in accordance with the  provisions  of  para-
graph  (a)  of  subdivision  two  of  this  section or is unable to give
consent to such a test.
  (c) Reasonable cause; definition. For the purpose of this  subdivision
"reasonable  cause"  shall  be  determined  by  viewing  the totality of
circumstances surrounding the incident which, when taken together, indi-
cate that the operator  was  driving  in  violation  of  section  eleven
hundred  ninety-two of this article. Such circumstances may include, but
are not limited to: evidence that the operator  was  operating  a  motor
vehicle  in  violation  of  any  provision  of this article or any other
moving violation at the time of the incident; any visible indication  of
alcohol or drug consumption or impairment by the operator; the existence
of  an  open  container  containing an alcoholic beverage AND/OR DRUG OR
DRUGS in or around the vehicle driven  by  the  operator;  THE  ODOR  OF
CANNABIS  OR  BURNT CANNABIS; any other evidence surrounding the circum-
stances of the incident which indicates that the operator has been oper-
ating a motor vehicle while impaired by the consumption  of  alcohol  or
drugs or intoxicated at the time of the incident.
  (d)  Court  order;  procedure. (1) An application for a court order to
compel submission to a chemical test or any portion thereof, may be made
to any supreme court justice, county court judge or district court judge
in the judicial district in which the incident occurred, or if the inci-
dent occurred in the city of New York before any supreme  court  justice
or judge of the criminal court of the city of New York. Such application
may  be  communicated  by  telephone, radio or other means of electronic
communication, or in person.
  (2) The applicant must provide identification by name  and  title  and
must  state the purpose of the communication. Upon being advised that an
application for a court order to compel submission to a chemical test is
being made, the court shall place under oath the applicant and any other
person providing information in support of the application  as  provided
in subparagraph three of this paragraph. After being sworn the applicant
must state that the person from whom the chemical test was requested was
the  operator  of  a motor vehicle and in the course of such operation a
person, other than the operator, has been killed  or  seriously  injured
and, based upon the totality of circumstances, there is reasonable cause
to  believe  that such person was operating a motor vehicle in violation
of any subdivision of section eleven hundred ninety-two of this  article
and,  after  being  placed  under  lawful  arrest such person refused to
submit to a chemical test or any portion thereof, in accordance with the

S. 7509                            142                           A. 9509

provisions of this section or is unable to give consent to such  a  test
or  any portion thereof. The applicant must make specific allegations of
fact to support such statement. Any other  person  properly  identified,
may  present  sworn  allegations  of  fact in support of the applicant's
statement.
  (3) Upon being advised that an oral application for a court  order  to
compel  a  person to submit to a chemical test is being made, a judge or
justice shall place under  oath  the  applicant  and  any  other  person
providing  information in support of the application. Such oath or oaths
and all of the remaining communication must be recorded, either by means
of a voice recording device or verbatim stenographic or  verbatim  long-
hand notes. If a voice recording device is used or a stenographic record
made, the judge must have the record transcribed, certify to the accura-
cy  of  the transcription and file the original record and transcription
with the court within seventy-two hours of the  issuance  of  the  court
order. If the longhand notes are taken, the judge shall subscribe a copy
and  file  it with the court within twenty-four hours of the issuance of
the order.
  (4) If the court is satisfied that the requirements for  the  issuance
of  a  court  order  pursuant to the provisions of paragraph (b) of this
subdivision have been met, it may grant the  application  and  issue  an
order  requiring  the  accused to submit to a chemical test to determine
the alcoholic and/or drug content of his blood and  ordering  the  with-
drawal  of a blood sample in accordance with the provisions of paragraph
(a) of subdivision four of this section. When a judge or justice  deter-
mines to issue an order to compel submission to a chemical test based on
an  oral  application, the applicant therefor shall prepare the order in
accordance with the instructions of the judge or justice.  In all  cases
the  order  shall  include the name of the issuing judge or justice, the
name of the applicant, and the date and time it was issued.  It must  be
signed  by the judge or justice if issued in person, or by the applicant
if issued orally.
  (5) Any false statement by an applicant or any other person in support
of an application for a court order shall subject  such  person  to  the
offenses  for  perjury set forth in article two hundred ten of the penal
law.
  (6) The chief administrator of the courts shall establish  a  schedule
to provide that a sufficient number of judges or justices will be avail-
able  in  each  judicial  district  to  hear oral applications for court
orders as permitted by this section.
  (e) Administration of compulsory chemical test. An order issued pursu-
ant to the provisions of this subdivision shall require that a  chemical
test  to  determine  the alcoholic and/or drug content of the operator's
blood must be administered. The provisions of paragraphs  (a),  (b)  and
(c) of subdivision four of this section shall be applicable to any chem-
ical test administered pursuant to this section.
  §  33-b. Subdivision 1 of section 1227 of the vehicle and traffic law,
as amended by section 3 of part F of chapter 60 of the laws of 2005,  is
amended to read as follows:
  1.  The drinking of alcoholic beverages OR CONSUMPTION OF CANNABIS, or
the possession of an open container containing an alcoholic beverage  OR
CANNABIS,  in a motor vehicle located upon the public highways or right-
of-way public highway is prohibited. Any operator or passenger violating
this section shall be guilty of a traffic infraction.
  The provisions of this section shall not be  deemed  to  prohibit  the
drinking  of  alcoholic  beverages  THE  CONSUMPTION OF CANNABIS, or the

S. 7509                            143                           A. 9509

possession of an open container  containing  an  alcoholic  beverage  OR
CANNABIS  by  passengers  in  passenger  vehicles operated pursuant to a
certificate or permit issued by the department of transportation or  the
United States department of transportation.  Furthermore, the provisions
of  this  section shall not be deemed to prohibit the possession of wine
which is: (a) resealed in accordance with the provisions of  subdivision
four  of  section  eighty-one of the alcoholic beverage control law; and
(b) is transported in the vehicle's trunk or is transported  behind  the
last  upright  seat or in an area not normally occupied by the driver or
passenger in a motor vehicle that is not equipped with a trunk.
  § 34. Subdivision 1 of section 171-a of the tax  law,  as  amended  by
section  3  of  part XX of chapter 59 of the laws of 2019, 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-D, twenty-one, twenty-two, twenty-four,
twenty-six, twenty-eight (except as otherwise provided in section eleven
hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
chapter  shall  be  deposited daily in one account with such responsible
banks, banking houses or trust companies as may  be  designated  by  the
comptroller,  to  the  credit of the comptroller. Such an account may be
established in one or more of such depositories. Such deposits shall  be
kept  separate  and  apart from all other money in the possession of the
comptroller. The comptroller shall require adequate  security  from  all
such depositories. Of the total revenue collected or received under such
articles  of  this  chapter,  the  comptroller shall retain in the comp-
troller's hands such amount as the  commissioner  may  determine  to  be
necessary  for  refunds  or  reimbursements  under such articles of this
chapter out of which amount the comptroller shall  pay  any  refunds  or
reimbursements to which taxpayers shall be entitled under the provisions
of  such  articles of this chapter. The commissioner and the comptroller
shall maintain a system  of  accounts  showing  the  amount  of  revenue
collected  or  received from each of the taxes imposed by such articles.
The comptroller, after reserving the  amount  to  pay  such  refunds  or
reimbursements,  shall,  on  or  before the tenth day of each month, pay
into the state treasury to the credit of the general  fund  all  revenue
deposited  under  this  section  during the preceding calendar month and
remaining to the comptroller's credit on the last day of such  preceding
month, (i) except that the comptroller shall pay to the state department
of social services that amount of overpayments of tax imposed by article
twenty-two  of  this  chapter  and  the interest on such amount which is
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

S. 7509                            144                           A. 9509

is  certified to the comptroller by the commissioner as the amount to be
credited against the amount  of  defaults  in  repayment  of  guaranteed
student loans and state university loans or city university loans pursu-
ant  to subdivision five of section one hundred seventy-one-d and subdi-
vision six of section one hundred seventy-one-e of this  article,  (iii)
and  except further that, notwithstanding any law, the comptroller shall
credit  to  the  revenue  arrearage   account,   pursuant   to   section
ninety-one-a of the state finance law, that amount of overpayment of tax
imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
or thirty-three of this chapter, and  any  interest  thereon,  which  is
certified  to  the  comptroller  by the commissioner as the amount to be
credited against a past-due legally enforceable debt  owed  to  a  state
agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
hundred seventy-one-f of this article, provided, however, he shall cred-
it to the special offset fiduciary account, pursuant to section  ninety-
one-c  of the state finance law, any such amount creditable as a liabil-
ity as set forth in paragraph (b) of  subdivision  six  of  section  one
hundred  seventy-one-f of this article, (iv) and except further that the
comptroller shall pay to the city of New York that amount of overpayment
of tax imposed by article nine, nine-A,  twenty-two,  thirty,  thirty-A,
thirty-B  or  thirty-three of this chapter and any interest thereon that
is certified to the comptroller by the commissioner as the amount to  be
credited  against city of New York tax warrant judgment debt pursuant to
section one hundred  seventy-one-l  of  this  article,  (v)  and  except
further  that  the  comptroller shall pay to a non-obligated spouse that
amount of overpayment of tax imposed by article twenty-two of this chap-
ter and the interest on such amount which has been credited pursuant  to
section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
hundred seventy-one-e, one hundred seventy-one-f or one  hundred  seven-
ty-one-l  of  this  article and which is certified to the comptroller by
the commissioner as the amount due such non-obligated spouse pursuant to
paragraph six of subsection (b) of section six hundred fifty-one of this
chapter; and (vi) the comptroller shall deduct a like amount  which  the
comptroller  shall  pay  into  the treasury to the credit of the general
fund from amounts subsequently  payable  to  the  department  of  social
services,  the  state university of New York, the city university of New
York, or the higher  education  services  corporation,  or  the  revenue
arrearage  account  or  special  offset  fiduciary  account  pursuant to
section ninety-one-a or ninety-one-c of the state finance  law,  as  the
case  may be, whichever had been credited the amount originally withheld
from such overpayment, and (vii)  with  respect  to  amounts  originally
withheld  from such overpayment pursuant to section one hundred seventy-
one-l of this article and paid to the city of New York, the  comptroller
shall collect a like amount from the city of New York.
  §  34-a.  Subdivision 1 of section 171-a of the tax law, as amended by
section 4 of part XX of chapter 59 of the laws of 2019,  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-C,  twenty-D,  twenty-one, twenty-two, twenty-four, twenty-

S. 7509                            145                           A. 9509

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

S. 7509                            146                           A. 9509

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

S. 7509                            147                           A. 9509

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

S. 7509                            148                           A. 9509

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

S. 7509                            149                           A. 9509

county,  whether  the  number of such registered organizations is one or
more. Provided further that,  notwithstanding  the  provisions  of  this
subdivision,  the commissioner may, in his or her discretion, permit the
proper  officer of any county entitled to receive an allocation, follow-
ing appropriation by the  legislature,  pursuant  to  this  article  and
section eighty-nine-h of the state finance law, or the authorized repre-
sentative  of such officer, to inspect any return filed under this arti-
cle, or may furnish to such officer or the officer's  authorized  repre-
sentative  an abstract of any such return or supply such officer or such
representative with information concerning an item contained in any such
return, or disclosed by any investigation of tax  liability  under  this
article.
  2.  The  commissioner,  in  his or her discretion and pursuant to such
rules and regulations as he or she may adopt, may  permit  [the  commis-
sioner  of  internal  revenue  of the United States, or] the appropriate
officers of any other state which regulates or taxes medical [marihuana]
CANNABIS, or the duly authorized representatives of  such  [commissioner
or of any such] officers, to inspect returns or reports made pursuant to
this  article,  or may furnish to such [commissioner or] other officers,
or duly authorized representatives, a copy of any such return or  report
or  an  abstract  of  the  information therein contained, or any portion
thereof, or may supply [such commissioner or] any such officers or  such
representatives  with  information  relating to the business of a regis-
tered organization making returns or reports hereunder. The commissioner
may refuse to supply information pursuant to this  subdivision  [to  the
commissioner  of  internal revenue of the United States or] to the offi-
cers of any other state if the statutes [of the United  States,  or]  of
the state represented by such officers, do not grant substantially simi-
lar privileges to the commissioner, but such refusal shall not be manda-
tory. Information shall not be supplied to [the commissioner of internal
revenue  of  the United States or] the appropriate officers of any other
state which regulates or taxes medical [marihuana] CANNABIS, or the duly
authorized representatives [of such commissioner  or]  of  any  of  such
officers,  unless  such [commissioner,] officer or other representatives
shall agree not to divulge or make known in any manner  the  information
so  supplied,  but  such officers may transmit such information to their
employees or legal representatives when necessary, who in turn shall  be
subject  to  the  same  restrictions  as  those hereby imposed upon such
[commissioner,] officer or other representatives.
  3. (a) Any officer or employee of the state who willfully violates the
provisions of subdivision one or two of this section shall be  dismissed
from  office and be incapable of holding any public office in this state
for a period of five years thereafter.
  (b) Cross-reference: For criminal penalties, see article  thirty-seven
of this chapter.
  §  37.  The tax law is amended by adding a new article 20-C to read as
follows:
                              ARTICLE 20-C
                   TAX ON ADULT-USE CANNABIS PRODUCTS
SECTION 492. DEFINITIONS.
        493. IMPOSITION OF TAX.
        494. REGISTRATION AND RENEWAL.
        495. RETURNS AND PAYMENT OF TAX.
        496. RECORDS TO BE KEPT; PENALTIES.
        496-A. RETURNS TO BE SECRET.
        496-B. ADMINISTRATIVE PROVISIONS.

S. 7509                            150                           A. 9509

        496-C. ILLICIT CANNABIS PENALTY.
  §  492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI-
NITIONS SHALL APPLY:
  (A) "ADULT-USE CANNABIS PRODUCT" MEANS CANNABIS,  CONCENTRATED  CANNA-
BIS,  AND CANNABIS INFUSED PRODUCTS. FOR PURPOSES OF THIS ARTICLE, UNDER
NO CIRCUMSTANCES SHALL ADULT-USE CANNABIS PRODUCT INCLUDE MEDICAL CANNA-
BIS OR HEMP AS DEFINED IN SECTION THREE OF THE CANNABIS LAW.
  (B) "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.
  (C)  "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA-
BIS THAT HAS BEEN HARVESTED, DRIED, AND CURED, AND PRIOR TO ANY PROCESS-
ING WHEREBY THE  PLANT  MATERIAL  IS  TRANSFORMED  INTO  A  CONCENTRATE,
INCLUDING,  BUT  NOT  LIMITED TO, CONCENTRATED CANNABIS, OR AN EDIBLE OR
TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS  AND  OTHER
INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM.
  (D)  "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.
  (E) "CULTIVATION" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO
OF SECTION SIXTY-EIGHT OF THE CANNABIS LAW.
  (F) "CULTIVATOR" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISIONS ONE
AND TWO OF SECTION SIXTY-EIGHT OF THE CANNABIS LAW.
  (G) "ILLICIT CANNABIS" MEANS AND INCLUDES ANY ADULT-USE CANNABIS PROD-
UCT OR MEDICAL CANNABIS ON WHICH ANY TAX  REQUIRED  TO  HAVE  BEEN  PAID
UNDER  THIS  CHAPTER  HAS  NOT  BEEN  PAID; OR ANY ADULT-USE CANNABIS OR
MEDICAL CANNABIS PRODUCT, THE FORM, PACKAGING, OR CONTENT  OF  WHICH  IS
NOT PERMITTED BY THE OFFICE OF CANNABIS MANAGEMENT, AS APPLICABLE.
  (H)  "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.
  (I) "PROCESSOR" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISIONS  ONE
AND TWO OF SECTION SIXTY-NINE OF THE CANNABIS LAW.
  (J)  "RETAIL DISPENSARY" MEANS A DISPENSARY LICENSED TO SELL ADULT-USE
CANNABIS PRODUCTS PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW.
  (K) "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.
  (L)  "TRANSFER"  MEANS  TO  GRANT,  CONVEY,  HAND  OVER, ASSIGN, SELL,
EXCHANGE OR BARTER, IN ANY MANNER OR  BY  ANY  MEANS,  WITH  OR  WITHOUT
CONSIDERATION.
  (M)  "WET CANNABIS" MEANS A WHOLE PLANT OF THE GENUS CANNABIS THAT HAS
BEEN HARVESTED AND WEIGHED WITHIN TWO HOURS OF HARVESTING  AND  HAS  NOT
UNDERGONE  ANY PROCESSING, INCLUDING, BUT NOT LIMITED TO DRYING, CURING,
TRIMMING OR INCREASING THE AMBIENT TEMPERATURE IN THE ROOM IN WHICH SUCH
PLANT IS HELD.

S. 7509                            151                           A. 9509

  § 493. IMPOSITION OF TAX.  (A) THERE IS HEREBY IMPOSED  AND  SHALL  BE
PAID  A  TAX ON THE CULTIVATION OF THE FOLLOWING: (1) CANNABIS FLOWER AT
THE RATE OF ONE DOLLAR PER DRY WEIGHT GRAM; (2)  CANNABIS  TRIM  AT  THE
RATE  OF  TWENTY-FIVE CENTS PER DRY-WEIGHT GRAM; AND (3) WET CANNABIS AT
THE  RATE  OF  FOURTEEN  CENTS PER GRAM.   THIS TAX SHALL BE PAID BY THE
PERSON TO WHOM SUCH FLOWER, TRIM, OR  WET  CANNABIS  HAS  BEEN  SOLD  OR
TRANSFERRED AND SHALL ACCRUE AT THE TIME OF SUCH SALE OR TRANSFER. WHERE
A PERSON WHO PROCESSES OR DISTRIBUTES CANNABIS FLOWER, CANNABIS TRIM, OR
WET  CANNABIS  IS  LICENSED  UNDER  THE CANNABIS LAW AS A MICROBUSINESS,
COOPERATIVE OR REGISTERED ORGANIZATION, SUCH PERSON SHALL BE LIABLE  FOR
THE TAX IMPOSED BY THIS SUBDIVISION.
  (B) IN ADDITION TO THE TAX IMPOSED BY SUBDIVISION (A) OF THIS SECTION,
THERE  IS  HEREBY  IMPOSED  A  TAX  ON THE SALE OR TRANSFER OF ADULT-USE
CANNABIS PRODUCTS BY ANY PERSON TO A RETAIL DISPENSARY AT  THE  RATE  OF
TWENTY  PERCENT  OF THE AMOUNT CHARGED BY SUCH PERSON FOR SUCH ADULT-USE
CANNABIS PRODUCTS, WHICH SHALL ACCRUE AT THE TIME OF SUCH SALE OR TRANS-
FER. WHERE THE RETAIL DISPENSARY IS OPERATED BY A PERSON LICENSED  UNDER
THE CANNABIS LAW AS A REGISTERED ORGANIZATION, SUCH TAX SHALL BE PAID BY
THE RETAIL DISPENSARY AT THE RATE OF TWENTY PERCENT OF THE PRICE CHARGED
TO THE RETAIL CUSTOMER AND SHALL ACCRUE AT THE TIME OF SUCH SALE.
  (C)  IN  ADDITION  TO THE TAXES IMPOSED BY SUBDIVISIONS (A) AND (B) OF
THIS SECTION, THERE IS HEREBY IMPOSED A TAX ON THE SALE OR  TRANSFER  OF
ADULT-USE  CANNABIS PRODUCTS BY ANY PERSON TO A RETAIL DISPENSARY AT THE
RATE OF TWO PERCENT OF THE  AMOUNT  CHARGED  BY  SUCH  PERSON  FOR  SUCH
ADULT-USE CANNABIS PRODUCTS, WHICH SHALL ACCRUE AT THE TIME OF SUCH SALE
OR  TRANSFER.  THE TAX IMPOSED BY THIS SUBDIVISION SHALL BE IN TRUST FOR
AND ON ACCOUNT OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE,  OR
A  COUNTY,  OTHER  THAN A COUNTY WHOLLY WITHIN SUCH A CITY, IN WHICH THE
RETAIL DISPENSARY IS LOCATED.  WHERE THE RETAIL DISPENSARY  IS  OPERATED
BY  A  PERSON  LICENSED UNDER THE CANNABIS LAW AS A REGISTERED ORGANIZA-
TION, SUCH TAX SHALL BE PAID BY THE RETAIL DISPENSARY AT THE RATE OF TWO
PERCENT OF THE PRICE CHARGED TO THE RETAIL CUSTOMER.
  (D) IT SHALL BE PRESUMED THAT ALL ADULT-USE CANNABIS  PRODUCTS  WITHIN
THE  STATE ARE SUBJECT TO TAX UNTIL THE CONTRARY IS ESTABLISHED, AND THE
BURDEN OF PROOF THAT THE TAXES IMPOSED BY SUBDIVISIONS (A), (B), AND (C)
OF THIS SECTION HAVE BEEN PAID SHALL BE UPON THE  PERSON  IN  POSSESSION
THEREOF  WHERE  SUCH  PERSON  HOLDS  ANY LICENSE UNDER THE CANNABIS LAW.
EVERY PERSON HOLDING A LICENSE UNDER  THE  CANNABIS  LAW  WHO  POSSESSES
ADULT-USE  CANNABIS  PRODUCTS  UPON  WHICH SUCH TAXES HAVE NOT BEEN PAID
SHALL BE LIABLE FOR THE PAYMENT OF SUCH TAXES, AND THE FAILURE  OF  SUCH
PERSON TO PRODUCE TO THE COMMISSIONER OR HIS OR HER AUTHORIZED REPRESEN-
TATIVE UPON DEMAND AN INVOICE FOR ANY ADULT-USE CANNABIS PRODUCTS IN HIS
OR HER POSSESSION SHALL BE PRESUMPTIVE EVIDENCE THAT THE TAX THEREON HAS
NOT BEEN PAID AND THAT SUCH PERSON IS LIABLE FOR THE TAX THEREON, UNLESS
EVIDENCE OF SUCH INVOICE OR PAYMENT IS LATER PRODUCED.
  (E)  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 PERSON TO WHOM CANNABIS
FLOWER, CANNABIS TRIM OR WET CANNABIS IS SOLD OR TRANSFERRED, AND  EVERY
PERSON  LICENSED AS A MICROBUSINESS, COOPERATIVE OR REGISTERED ORGANIZA-
TION UNDER THE CANNABIS LAW 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

S. 7509                            152                           A. 9509

REGISTRATION  MUST  BE SUBMITTED ELECTRONICALLY, ON A FORM PRESCRIBED BY
THE COMMISSIONER, AND MUST BE ACCOMPANIED BY A  NON-REFUNDABLE  APPLICA-
TION 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 SPECIFIED 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  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 SUSPENDED WHERE THE SUSPENSION IS IN EFFECT ON THE
DATE THE APPLICATION IS FILED OR ENDED LESS  THAN  ONE  YEAR  FROM  SUCH
DATE;  (4)  HAS  BEEN  CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER
WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED OR THE
CERTIFICATE WAS ISSUED AS APPLICABLE; (5)  WILLFULLY  FAILS  TO  FILE  A
REPORT  OR  RETURN REQUIRED BY THIS ARTICLE; (6) 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; OR (7) WILLFULLY
FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY  TAX  IMPOSED
BY THIS ARTICLE.
  (C) A CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE PERIOD SPECI-
FIED  THEREON,  UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION
OF THE TERM STATED ON A CERTIFICATE OF  REGISTRATION,  SUCH  CERTIFICATE
SHALL BE NULL AND VOID.
  (D)  EVERY  HOLDER  OF  A  CERTIFICATE OF REGISTRATION MUST NOTIFY THE
COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE  CERTIF-
ICATE, OR OF CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR
THE  CERTIFICATE  OF  REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR
BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS  AND  MUST  BE
MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.
  (E)  EVERY  HOLDER OF A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE
SHALL BE REQUIRED TO REAPPLY PRIOR  TO  SUCH  CERTIFICATE'S  EXPIRATION,
DURING  A  REAPPLICATION  PERIOD  ESTABLISHED  BY THE COMMISSIONER. SUCH
REAPPLICATION PERIOD SHALL NOT OCCUR  MORE  FREQUENTLY  THAN  EVERY  TWO
YEARS.  SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND
CONDITIONS AS AN INITIAL APPLICATION, INCLUDING GROUNDS FOR REFUSAL  AND
THE PAYMENT OF THE APPLICATION FEE.
  (F) ANY PERSON WHO IS REQUIRED TO OBTAIN A CERTIFICATE OF REGISTRATION
UNDER  SUBDIVISION  (A) OF THIS SECTION WHO POSSESSES ADULT-USE CANNABIS
PRODUCTS WITHOUT SUCH CERTIFICATE SHALL BE SUBJECT TO A PENALTY OF  FIVE
HUNDRED  DOLLARS  FOR  EACH MONTH OR PART THEREOF DURING WHICH ADULT-USE
CANNABIS PRODUCTS ARE POSSESSED WITHOUT SUCH CERTIFICATE, NOT TO  EXCEED
TEN THOUSAND DOLLARS IN THE AGGREGATE.
  §  495.  RETURNS  AND  PAYMENT OF TAX.   EVERY PERSON TO WHOM CANNABIS
FLOWER, CANNABIS TRIM OR WET CANNABIS IS SOLD OR TRANSFERRED, AND  EVERY
PERSON  LICENSED AS A MICROBUSINESS, COOPERATIVE OR REGISTERED ORGANIZA-
TION UNDER THE CANNABIS LAW SHALL, ON OR BEFORE THE TWENTIETH DAY OF THE
MONTH, FILE WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED  BY

S. 7509                            153                           A. 9509

THE  COMMISSIONER, SHOWING THE TOTAL WEIGHT OF CANNABIS FLOWER, CANNABIS
TRIM, AND WET CANNABIS 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
OR TRANSFERS TO, OR SALES BY, A RETAIL DISPENSARY DURING  THE  PRECEDING
CALENDAR  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.
  § 496. RECORDS TO BE KEPT; PENALTIES.  (A) RECORDS TO BE  KEPT.  EVERY
PERSON TO WHOM CANNABIS FLOWER, CANNABIS TRIM OR WET CANNABIS IS SOLD OR
TRANSFERRED,  AND  EVERY PERSON LICENSED AS A MICROBUSINESS, COOPERATIVE
OR  REGISTERED  ORGANIZATION  UNDER  THE  CANNABIS  LAW  SHALL  MAINTAIN
COMPLETE  AND  ACCURATE  RECORDS  IN  SUCH  FORM AS THE COMMISSIONER MAY
REQUIRE INCLUDING, BUT NOT LIMITED TO, SUCH ITEMS AS THE WEIGHT  OF  THE
CANNABIS  FLOWER, CANNABIS TRIM, AND WET CANNABIS SOLD OR TRANSFERRED TO
OR PRODUCED BY SUCH PERSON; THE  GEOGRAPHIC  LOCATION  OF  EVERY  RETAIL
DISPENSARY  TO  WHICH SUCH PERSON SOLD OR TRANSFERRED ADULT-USE CANNABIS
PRODUCTS; AND ANY OTHER RECORD OR INFORMATION REQUIRED  BY  THE  COMMIS-
SIONER. SUCH RECORDS MUST BE PRESERVED FOR A PERIOD OF THREE YEARS AFTER
THE  FILING  OF  THE  RETURN  TO  WHICH  SUCH RECORDS RELATE AND MUST BE
PROVIDED TO THE COMMISSIONER UPON REQUEST.
  (B) PENALTIES. IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS ARTI-
CLE OR OTHERWISE IMPOSED BY LAW: EVERY PERSON TO WHOM  CANNABIS  FLOWER,
CANNABIS  TRIM  OR WET CANNABIS IS SOLD OR TRANSFERRED, AND EVERY PERSON
LICENSED AS A  MICROBUSINESS,  COOPERATIVE  OR  REGISTERED  ORGANIZATION
UNDER  THE  CANNABIS  LAW WHO FAILS TO MAINTAIN OR MAKE AVAILABLE TO THE
COMMISSIONER THE RECORDS REQUIRED BY THIS SECTION IS SUBJECT TO A PENAL-
TY NOT TO EXCEED FIVE HUNDRED DOLLARS FOR THE FIRST MONTH OR PART THERE-
OF FOR WHICH THE FAILURE OCCURS. THIS PENALTY MAY NOT  BE  IMPOSED  MORE
THAN  ONCE  FOR FAILURES FOR THE SAME MONTHLY PERIOD OR PART THEREOF. IF
THE COMMISSIONER DETERMINES THAT A FAILURE TO MAINTAIN OR MAKE AVAILABLE
RECORDS IN ANY MONTH WAS ENTIRELY DUE TO REASONABLE  CAUSE  AND  NOT  TO
WILLFUL NEGLECT, THE COMMISSIONER MUST REMIT THE PENALTY FOR THAT MONTH.
  §  496-A.  RETURNS TO BE 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 CONTAINED IN ANY RETURN OR
REPORT REQUIRED UNDER THIS ARTICLE. THE OFFICERS CHARGED WITH THE CUSTO-
DY 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 PROCEED-
ING  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

S. 7509                            154                           A. 9509

IN SUCH ACTION OR PROCEEDING, 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 THEREBY AS ARE PERTINENT TO THE ACTION OR
PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE  CONSTRUED  TO  PROHIBIT
THE COMMISSIONER, IN HIS OR HER DISCRETION, FROM ALLOWING THE INSPECTION
OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS
ARTICLE  OR OF ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT BY
OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF THE  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  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 ARTI-
CLE,  NOR  TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO
PREVENT THE IDENTIFICATION OF PARTICULAR  RETURNS  OR  REPORTS  AND  THE
ITEMS  THEREOF. 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 PERSONS SUBJECT TO THE TAXES IMPOSED
BY THIS ARTICLE, WHETHER THE NUMBER OF SUCH  PERSONS  IS  ONE  OR  MORE.
PROVIDED  FURTHER  THAT, NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVI-
SION, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE  PROPER
OFFICER  OF  ANY  CITY  HAVING A POPULATION OF ONE MILLION OR MORE AND A
COUNTY, OTHER THAN A COUNTY WHOLLY  WITHIN  SUCH  A  CITY,  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  OFFICER'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 ANY  SUCH  OFFICERS,  TO  INSPECT
RETURNS OR REPORTS MADE PURSUANT TO THIS ARTICLE, OR MAY FURNISH TO SUCH
OTHER  OFFICERS, OR THEIR 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 ANY SUCH OFFICERS OR
SUCH REPRESENTATIVES WITH INFORMATION RELATING  TO  THE  BUSINESS  OF  A
PERSON  MAKING  RETURNS  OR REPORTS HEREUNDER SOLELY FOR PURPOSES OF TAX
ADMINISTRATION. THE COMMISSIONER MAY REFUSE TO SUPPLY INFORMATION PURSU-
ANT TO THIS SUBDIVISION TO THE OFFICERS OF ANY OTHER STATE IF THE  STAT-
UTES OF THE STATE REPRESENTED BY SUCH OFFICERS DO NOT GRANT SUBSTANTIAL-
LY SIMILAR PRIVILEGES TO THE COMMISSIONER, BUT SUCH REFUSAL SHALL NOT BE
MANDATORY.    INFORMATION  SHALL  NOT BE SUPPLIED TO THE OFFICERS OF ANY
STATE THAT REGULATES OR TAXES CANNABIS, OR THE DULY AUTHORIZED REPRESEN-
TATIVES OF ANY SUCH OFFICERS, UNLESS SUCH OFFICERS  OR  OTHER  REPRESEN-

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TATIVES  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 OFFICERS OR OTHER REPRESENTATIVES.
  (C) ANY OFFICER OR EMPLOYEE OF THE STATE WHO  WILLFULLY  VIOLATES  THE
PROVISIONS  OF SUBDIVISION (A) OR (B) 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, AND SUBJECT TO CRIMINAL PENALTIES
PURSUANT TO ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
  §  496-B.  ADMINISTRATIVE  PROVISIONS.   (A) 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 INCORPORATED 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.
  (B)(L) 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-HH OF THE STATE FINANCE LAW. OF THE TOTAL
REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER  SHALL
RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
REFUNDS.  THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE
REGISTRATION FEES UNDER SUBDIVISION (A) OF SECTION FOUR HUNDRED  NINETY-
FOUR  OF  THIS  ARTICLE,  BEFORE  DEPOSIT INTO THE CANNABIS REVENUE FUND
DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTU-
ATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPART-
MENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT, AND  DISTRIBUTE  THE
TAXES IMPOSED BY THIS ARTICLE.
  (2)  NOTWITHSTANDING  THE FOREGOING, THE COMMISSIONER SHALL CERTIFY TO
THE COMPTROLLER THE TOTAL AMOUNT OF TAX, PENALTY AND  INTEREST  RECEIVED
BY  HIM  OR  HER  ON  ACCOUNT  OF  THE TAX IMPOSED BY SUBDIVISION (C) OF
SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE IN TRUST  FOR  AND  ON
ACCOUNT OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE AND A COUN-
TY,  OTHER  THAN  A  COUNTY WHOLLY WITHIN SUCH A CITY, 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 APPRO-
PRIATE FISCAL OFFICER OF EACH SUCH  CITY  HAVING  A  POPULATION  OF  ONE
MILLION  OR  MORE AND A COUNTY, OTHER THAN A COUNTY WHOLLY WITHIN SUCH A
CITY, THE TAXES, PENALTIES AND INTEREST RECEIVED AND  CERTIFIED  BY  THE
COMMISSIONER FOR THE PRECEDING CALENDAR MONTH.
  §  496-C. ILLICIT CANNABIS PENALTY. (A) IN ADDITION TO ANY OTHER CIVIL
OR CRIMINAL PENALTIES THAT MAY APPLY, ANY PERSON  IN  POSSESSION  OF  OR
HAVING CONTROL OVER ILLICIT CANNABIS, AS DEFINED IN SECTION FOUR HUNDRED
NINETY-TWO  OF THIS ARTICLE, AFTER NOTICE AND AN OPPORTUNITY FOR A HEAR-
ING, SHALL BE LIABLE FOR A CIVIL PENALTY OF NOT LESS THAN  FOUR  HUNDRED
DOLLARS  PER  OUNCE  OF ILLICIT CANNABIS PLANT MATERIAL, TEN DOLLARS PER
MILLIGRAM OF TETRAHYDROCANNABINOL CONTAINED IN ILLICIT CANNABIS  INFUSED
PRODUCTS,  ONE  HUNDRED DOLLARS PER GRAM OF ILLICIT CANNABIS CONCENTRATE
OR EXTRACT, TWO HUNDRED FIFTY  DOLLARS  PER  IMMATURE  ILLICIT  CANNABIS
PLANT,  AND  ONE  THOUSAND DOLLARS PER MATURE CANNABIS PLANT, BUT NOT TO

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EXCEED EIGHT HUNDRED DOLLARS PER OUNCE OF ILLICIT CANNABIS PLANT MATERI-
AL, TWENTY DOLLARS PER MILLIGRAM OF  TETRAHYDROCANNABINOL  CONTAINED  IN
ILLICIT  CANNABIS  INFUSED  PRODUCTS,  TWO  HUNDRED  DOLLARS PER GRAM OF
ILLICIT  CANNABIS CONCENTRATE OR EXTRACT, FIVE HUNDRED DOLLARS PER IMMA-
TURE ILLICIT CANNABIS PLANT, AND TWO THOUSAND DOLLARS PER MATURE  CANNA-
BIS  PLANT  FOR  A  FIRST  VIOLATION,  AND  FOR  A  SECOND OR SUBSEQUENT
VIOLATION WITHIN THREE YEARS FOLLOWING A PRIOR VIOLATION SHALL BE LIABLE
FOR A CIVIL PENALTY OF NOT LESS THAN EIGHT HUNDRED DOLLARS PER OUNCE  OF
ILLICIT CANNABIS PLANT MATERIAL, TWENTY DOLLARS PER MILLIGRAM OF TETRAH-
YDROCANNABINOL  CONTAINED  IN  ILLICIT  CANNABIS  INFUSED  PRODUCTS, TWO
HUNDRED DOLLARS PER GRAM OF ILLICIT  CANNABIS  CONCENTRATE  OR  EXTRACT,
FIVE  HUNDRED DOLLARS PER IMMATURE ILLICIT CANNABIS PLANT, AND TWO THOU-
SAND DOLLARS PER MATURE CANNABIS PLANT BUT NOT TO  EXCEED  ONE  THOUSAND
DOLLARS  PER OUNCE OF ILLICIT CANNABIS PLANT MATERIAL, FORTY DOLLARS PER
MILLIGRAM OF TETRAHYDROCANNABINOL CONTAINED IN ILLICIT CANNABIS  INFUSED
PRODUCTS,  FOUR HUNDRED DOLLARS PER GRAM OF ILLICIT CANNABIS CONCENTRATE
OR EXTRACT, ONE THOUSAND DOLLARS PER IMMATURE  ILLICIT  CANNABIS  PLANT,
AND FOUR THOUSAND DOLLARS PER MATURE CANNABIS PLANT.
  (B)  NO ENFORCEMENT ACTION TAKEN UNDER THIS SECTION SHALL BE CONSTRUED
TO LIMIT ANY OTHER CRIMINAL OR CIVIL LIABILITY OF ANYONE  IN  POSSESSION
OF ILLICIT CANNABIS.
  §  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. Intentionally omitted.
  § 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, SEVEN-A, EIGHT, NINE, TEN AND ELEVEN  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  and  the
department  of health shall conduct a study of the effectiveness of this
act. Such study shall examine all aspects of the program, including  the
economic and fiscal aspects of the program, the impact of the program 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  recom-
mendations  regarding  the  appropriate level of taxation as well as any
recommended changes to the taxation  and  regulatory  structure  of  the
program.  In  addition, the office shall also recommend 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  temporary

S. 7509                            157                           A. 9509

president  of  the senate and the speaker of the assembly, no later than
October 1, 2023.
  §  42. Section 102 of the alcoholic beverage control law is amended by
adding a new subdivision 8 to read as follows:
  8. NO ALCOHOLIC BEVERAGE RETAIL LICENSEE SHALL SELL CANNABIS, NOR HAVE
OR POSSESS A LICENSE OR PERMIT TO SELL CANNABIS, ON  THE  SAME  PREMISES
WHERE ALCOHOLIC BEVERAGES ARE SOLD.
  §  43.  Subdivisions  1,  4,  5,  6, 7 and 13 of section 12-102 of the
general obligations law, as added by chapter 406 of the  laws  of  2000,
are amended to read as follows:
  1.  "Illegal  drug"  means any controlled substance [or marijuana] the
possession of which is an offense under the public  health  law  or  the
penal law.
  4.  "Grade  one  violation"  means  possession of one-quarter ounce or
more, but less than four ounces, or distribution of less than one  ounce
of  an illegal drug [other than marijuana, or possession of one pound or
twenty-five plants or more, but less than four pounds or  fifty  plants,
or distribution of less than one pound of marijuana].
  5.  "Grade two violation" means possession of four ounces or more, but
less than eight ounces, or distribution of one ounce or more,  but  less
than two ounces, of an illegal drug [other than marijuana, or possession
of  four pounds or more or fifty plants or distribution of more than one
pound but less than ten pounds of marijuana].
  6. "Grade three violation" means possession of eight ounces  or  more,
but less than sixteen ounces, or distribution of two ounces or more, but
less  than  four  ounces,  of a specified illegal drug [or possession of
eight pounds or more or seventy-five  plants  or  more,  but  less  than
sixteen  pounds or one hundred plants, or distribution of more than five
pounds but less than ten pounds of marijuana].
  7. "Grade four violation" means possession of sixteen ounces  or  more
or  distribution  of four ounces or more of a specified illegal drug [or
possession of sixteen pounds or more or one hundred plants  or  more  or
distribution of ten pounds or more of marijuana].
  13. "Drug trafficker" means a person convicted of a class A or class B
felony  controlled  substance  [or marijuana offense] who, in connection
with the  criminal  conduct  for  which  he  or  she  stands  convicted,
possessed, distributed, sold or conspired to sell a controlled substance
[or  marijuana] which, by virtue of its quantity, the person's prominent
role in the enterprise responsible for the sale or distribution of  such
controlled  substance  and  other circumstances related to such criminal
conduct  indicate  that  such  person's  criminal  possession,  sale  or
conspiracy to sell such substance was not an isolated occurrence and was
part  of  an ongoing pattern of criminal activity from which such person
derived substantial income or resources and in which such person  played
a leadership role.
  §  44.  Paragraph  (g)  of  subdivision 1 of section 488 of the social
services law, as added by section 1 of part B of chapter 501 of the laws
of 2012, is amended to read as follows:
  (g) "Unlawful use or administration of a controlled substance,"  which
shall  mean any administration by a custodian to a service recipient of:
a controlled substance as defined by article thirty-three of the  public
health law, without a prescription; or other medication not approved for
any  use  by  the  federal  food and drug administration, EXCEPT FOR THE
ADMINISTRATION OF  MEDICAL  CANNABIS  WHEN  SUCH  ADMINISTRATION  IS  IN
ACCORDANCE  WITH  ARTICLE  THREE OF THE CANNABIS LAW AND ANY REGULATIONS
PROMULGATED THEREUNDER AS WELL AS THE RULES, REGULATIONS,  POLICIES,  OR

S. 7509                            158                           A. 9509

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.
  §  44-a.  Subdivision  1 of section 151 of the social services law, as
amended by section 2 of part F of chapter 58 of the  laws  of  2014,  is
amended to read as follows:
  1. Unauthorized transactions. Except as otherwise provided in subdivi-
sion  two  of  this  section, no person, firm, establishment, entity, or
corporation (a) licensed under the provisions of the alcoholic  beverage
control  law  to  sell  liquor  and/or  wine  at retail for off-premises
consumption; (b) licensed to sell beer at wholesale and also  authorized
to  sell  beer  at  retail for off-premises consumption; (c) licensed or
authorized to conduct pari-mutuel wagering activity  under  the  racing,
pari-mutuel  wagering  and  breeding law; (d) licensed to participate in
charitable gaming under article fourteen-H of the general municipal law;
(e) licensed to participate in the operation of a video lottery facility
under section one thousand six hundred seventeen-a of the tax  law;  (f)
licensed  to  operate a gaming facility under section one thousand three
hundred eleven of the racing, pari-mutuel  wagering  and  breeding  law;
[or]  (g)  LICENSED  TO  OPERATE AN ADULT-USE CANNABIS RETAIL DISPENSARY
PURSUANT TO THE CANNABIS LAW: OR  (H)  providing  adult-oriented  enter-
tainment  in  which  performers disrobe or perform in an unclothed state
for entertainment, or making available the  venue  in  which  performers
disrobe  or  perform in an unclothed state for entertainment, shall cash
or accept any public assistance check  or  electronic  benefit  transfer
device issued by a public welfare official or department, or agent ther-
eof, as and for public assistance.
  §  44-b.  Subdivision  3  of section 151 of the social services law is
amended by adding a new paragraph (d) to read as follows:
  (D) A VIOLATION OF THE PROVISIONS OF SUBDIVISION ONE OF  THIS  SECTION
TAKING  PLACE AT THE LICENSED PREMISES BY A PERSON, FIRM, ESTABLISHMENT,
ENTITY OR CORPORATION LICENSED PURSUANT TO THE CANNABIS LAW  TO  OPERATE
AN ADULT-USE CANNABIS RETAIL DISPENSARY SHALL SUBJECT SUCH PERSON, FIRM,
ESTABLISHMENT, ENTITY OR CORPORATION TO PENALTIES AND INJUNCTIONS PURSU-
ANT TO SECTION SIXTEEN OF ARTICLE TWO OF THE CANNABIS LAW.
  §  45.  Paragraphs  (e) and (f) of subdivision 1 of section 490 of the
social services law, as added by section 1 of part B of chapter  501  of
the  laws  of 2012, are amended and a new paragraph (g) is added to read
as follows:
  (e) information regarding individual  reportable  incidents,  incident
patterns  and  trends,  and  patterns  and  trends  in the reporting and
response to reportable incidents is shared, consistent  with  applicable
law,  with  the  justice  center, in the form and manner required by the
justice center and, for facilities or provider  agencies  that  are  not
state  operated,  with the applicable state oversight agency which shall
provide such information to the justice center; [and]
  (f) incident review committees  are  established;  provided,  however,
that  the  regulations may authorize an exemption from this requirement,
when appropriate, based on the size of the facility or  provider  agency
or  other relevant factors. Such committees shall be composed of members
of the governing body of the  facility  or  provider  agency  and  other
persons  identified  by the director of the facility or provider agency,
including some members of the following: direct support staff,  licensed
health  care  practitioners,  service  recipients and representatives of
family, consumer and other advocacy organizations, but not the  director

S. 7509                            159                           A. 9509

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 CANNABIS.
  § 46. 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

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under [title five-A of article thirty-three of the  public  health  law]
ARTICLE THREE OF THE CANNABIS LAW.
  Criminal  diversion  of  medical  [marihuana]  CANNABIS  in the second
degree is a class B misdemeanor.
§ 179.15 Criminal retention of medical [marihuana] CANNABIS.
  A person is guilty of criminal retention of medical [marihuana] CANNA-
BIS when, being a certified patient or designated  caregiver,  as  those
terms  are  defined  in  [subdivisions three and five of section thirty-
three hundred sixty of the  public  health  law,  respectively]  SECTION
THREE  OF  THE  CANNABIS  LAW,  he  or she knowingly obtains, possesses,
stores or maintains an amount of [marihuana] CANNABIS in excess  of  the
amount he or she is authorized to possess under the provisions of [title
five-A  of  article thirty-three of the public health law] ARTICLE THREE
OF THE CANNABIS LAW.
  Criminal retention of medical [marihuana] CANNABIS is a class A misde-
meanor.
  § 47. 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

S. 7509                            161                           A. 9509

health, could reasonably believe that the condition is in fact a drug or
alcohol overdose and (except as to death) requires health care.
  (b) "Health care" means the professional services provided to a person
experiencing  a  drug  or alcohol overdose by a health care professional
licensed, registered or certified under title eight of the education law
or article thirty of the public health law who, acting within his or her
lawful scope of practice, may provide diagnosis, treatment or  emergency
services for a person experiencing a drug or alcohol overdose.
  4.  It  shall  be an affirmative defense to a criminal sale controlled
substance offense under this article or a criminal sale  of  [marihuana]
CANNABIS offense under article two hundred twenty-one of this title, not
covered  by  subdivision one or two of this section, with respect to any
controlled substance or [marihuana] CANNABIS which  was  obtained  as  a
result of such seeking or receiving of health care, that:
  (a) the defendant, in good faith, seeks health care for someone or for
him  or  herself who is experiencing a drug or alcohol overdose or other
life threatening medical emergency; and
  (b) the defendant has  no  prior  conviction  for  the  commission  or
attempted  commission  of a class A-I, A-II or B felony under this arti-
cle.
  5. Nothing in this section shall be construed to bar the admissibility
of any evidence in connection with the investigation and prosecution  of
a  crime  with  regard  to  another defendant who does not independently
qualify for the bar to prosecution or for the affirmative  defense;  nor
with  regard  to other crimes committed by a person who otherwise quali-
fies under this section; nor shall anything in this section be construed
to bar any seizure pursuant to law, including but not limited to  pursu-
ant  to  section  thirty-three hundred eighty-seven of the public health
law.
  6. The bar to prosecution described in subdivisions  one  and  two  of
this  section  shall  not apply to the prosecution of a class A-I felony
under this article, and the affirmative defense described in subdivision
four of this section shall not apply to the prosecution of a  class  A-I
or A-II felony under this article.
  §  48. 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
  § 49. 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.

S. 7509                            162                           A. 9509

  3. The moneys in the medical [marihuana] CANNABIS trust fund shall  be
kept  separate  and shall not be commingled with any other moneys in the
custody of the commissioner of taxation and finance and the state  comp-
troller.
  4.  The moneys of the medical [marihuana] CANNABIS trust fund, follow-
ing appropriation by the legislature, shall be allocated upon a  certif-
icate  of  approval  of  availability  by  the director of the budget as
follows:  (a) Twenty-two and five-tenths percent of the monies shall  be
transferred  to  the  counties  in  New  York state in which the medical
[marihuana] CANNABIS was manufactured and allocated in proportion to the
gross sales originating from medical [marihuana]  CANNABIS  manufactured
in  each  such  county;  (b)  twenty-two  and five-tenths percent of the
moneys shall be transferred to the counties in New York state  in  which
the  medical [marihuana] CANNABIS was dispensed and allocated in propor-
tion to the gross sales occurring in each such county; (c) five  percent
of  the  monies  shall  be  transferred to the office of [alcoholism and
substance abuse services] ADDICTION SERVICES AND SUPPORTS,  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.
  § 50. The state finance law is amended by adding a new  section  99-hh
to read as follows:
  §  99-HH.  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,
IMPLEMENTATION AND ADMINISTRATION OF THE INITIATIVES AND PROGRAMS OF THE
SOCIAL  AND  ECONOMIC  EQUITY PLAN IN THE OFFICE OF CANNABIS MANAGEMENT,
SUBSTANCE  ABUSE,  HARM  REDUCTION  AND  MENTAL  HEALTH  TREATMENT   AND
PREVENTION, PUBLIC HEALTH EDUCATION AND INTERVENTION, RESEARCH ON CANNA-

S. 7509                            163                           A. 9509

BIS  USES AND APPLICATIONS, PROGRAM EVALUATION 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 BUDG-
ET.
  §  51.  Subdivision  2  of  section  3371 of the public health law, as
amended by chapter 90 of the  laws  of  2014,  is  amended  to  read  as
follows:
  2. The prescription monitoring program registry may be accessed, under
such  terms  and  conditions  as  are  established by the department for
purposes of maintaining the security and confidentiality of the informa-
tion contained in the registry, by:
  (a) a practitioner, or a  designee  authorized  by  such  practitioner
pursuant  to  paragraph  (b)  of subdivision two of section thirty-three
hundred forty-three-a [or section  thirty-three  hundred  sixty-one]  of
this article, for the purposes of: (i) informing the practitioner that a
patient  may  be  under treatment with a controlled substance by another
practitioner; (ii) providing  the  practitioner  with  notifications  of
controlled  substance  activity  as  deemed  relevant by the department,
including but not limited to a notification made available on a  monthly
or  other  periodic  basis through the registry of controlled substances
activity pertaining to his or her patient; (iii)  allowing  the  practi-
tioner,  through  consultation  of  the  prescription monitoring program
registry, to review his or her patient's controlled  substances  history
as  required  by  section thirty-three hundred forty-three-a [or section
thirty-three hundred sixty-one] of this article; and (iv)  providing  to
his  or  her  patient, or person authorized pursuant to paragraph (j) of
subdivision one of this section, upon request, a copy of such  patient's
controlled substance history as is available to the practitioner through
the prescription monitoring program registry; or
  (b)  a pharmacist, pharmacy intern or other designee authorized by the
pharmacist pursuant to paragraph (b) of  subdivision  three  of  section
thirty-three hundred forty-three-a of this article, for the purposes of:
(i)  consulting  the  prescription monitoring program registry to review
the controlled substances history of an individual for whom one or  more
prescriptions  for controlled substances or certifications for [marihua-
na] CANNABIS is presented to the pharmacist, pursuant to  section  thir-
ty-three  hundred forty-three-a of this article; and (ii) receiving from
the department such notifications of controlled  substance  activity  as
are made available 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.
  §  52.  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.
  § 53. 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:

S. 7509                            164                           A. 9509

  5. For the purposes of this  section,  a  "specified  offense"  is  an
offense  defined  by  any  of the following provisions of the penal law:
burglary in the third degree as  defined  in  section  140.20,  criminal
mischief  in  the  third  degree  as defined in section 145.05, criminal
mischief in the second degree as defined in section 145.10, grand larce-
ny in the fourth degree as defined in subdivision one, two, three, four,
five,  six,  eight,  nine or ten of section 155.30, grand larceny in the
third degree as defined in section 155.35  (except  where  the  property
consists  of one or more firearms, rifles or shotguns), unauthorized use
of a vehicle in the second degree as defined in section 165.06, criminal
possession of stolen property in the fourth degree as defined in  subdi-
vision  one,  two,  three,  five  or  six  of  section  165.45, criminal
possession of stolen property in the third degree as defined in  section
165.50  (except  where  the  property  consists of one or more firearms,
rifles or shotguns), forgery in the second degree as defined in  section
170.10,  criminal possession of a forged instrument in the second degree
as defined in section 170.25, unlawfully using slugs in the first degree
as defined in section 170.60, criminal diversion of medical  [marihuana]
CANNABIS  in the first degree as defined in section 179.10 or an attempt
to commit any of the aforementioned offenses if such attempt constitutes
a felony offense; or a class B felony offense  defined  in  article  two
hundred  twenty where a sentence is imposed pursuant to paragraph (a) of
subdivision two of section 70.70 of the penal law; or any class C, class
D or class E controlled substance [or marihuana] CANNABIS felony offense
as defined in article two hundred twenty or two hundred twenty-one.
  § 54. 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.
  §  55.  The  criminal procedure law is amended by adding a new section
440.46-a to read as follows:
§ 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARIHUANA
             OFFENSES.

S. 7509                            165                           A. 9509

  1. A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER  BY
TRIAL  OR  BY OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN GUILTY OF
AN OFFENSE OR WHO WOULD HAVE BEEN GUILTY OF  A  LESSER  OFFENSE  ON  AND
AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT
AT  THE  TIME  OF  HIS  OR  HER  CONVICTION MAY PETITION FOR A RECALL OR
DISMISSAL OF SENTENCE BEFORE THE TRIAL COURT THAT ENTERED  THE  JUDGMENT
OF CONVICTION IN HIS OR HER CASE TO REQUEST RESENTENCING OR DISMISSAL IN
ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW.
  2.  UPON  RECEIVING A MOTION UNDER SUBDIVISION ONE OF THIS SECTION THE
COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE
OF THIS SECTION UNLESS THE PARTY OPPOSING THE MOTION PROVES BY CLEAR AND
CONVINCING EVIDENCE THAT THE MOVANT DOES NOT SATISFY  THE  CRITERIA.  IF
THE  MOVANT  SATISFIES  THE CRITERIA IN SUBDIVISION ONE OF THIS SECTION,
THE COURT SHALL GRANT THE MOTION TO VACATE THE SENTENCE OR TO RESENTENCE
BECAUSE IT IS LEGALLY INVALID. IN EXERCISING ITS DISCRETION,  THE  COURT
MAY  CONSIDER,  BUT  SHALL  NOT  BE  LIMITED  TO, THE FOLLOWING: (A) THE
MOVANT'S CRIMINAL CONVICTION  HISTORY,  INCLUDING  THE  TYPE  OF  CRIMES
COMMITTED,  THE  EXTENT OF INJURY TO VICTIMS, THE LENGTH OF PRIOR PRISON
COMMITMENTS, AND THE REMOTENESS OF THE CRIMES. (B) THE  MOVANT'S  DISCI-
PLINARY RECORD AND RECORD OF REHABILITATION WHILE INCARCERATED.
  3.  A  PERSON  WHO  IS  SERVING A SENTENCE AND RESENTENCED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION SHALL  BE  GIVEN  CREDIT  FOR  ANY  TIME
ALREADY  SERVED AND SHALL BE SUBJECT TO SUPERVISION FOR ONE YEAR FOLLOW-
ING COMPLETION OF HIS OR HER TIME IN CUSTODY  OR  SHALL  BE  SUBJECT  TO
WHATEVER SUPERVISION TIME HE OR SHE WOULD HAVE OTHERWISE BEEN SUBJECT TO
AFTER   RELEASE,   WHICHEVER  IS  SHORTER,  UNLESS  THE  COURT,  IN  ITS
DISCRETION, AS PART OF ITS RESENTENCING ORDER, RELEASES THE PERSON  FROM
SUPERVISION.  SUCH PERSON IS SUBJECT TO PAROLE SUPERVISION UNDER SECTION
60.04 OF THE PENAL LAW OR POST-RELEASE SUPERVISION UNDER  SECTION  70.45
OF  THE  PENAL  LAW BY THE DESIGNATED AGENCY AND THE JURISDICTION OF THE
COURT IN THE COUNTY IN WHICH THE OFFENDER IS RELEASED OR RESIDES, OR  IN
WHICH  AN ALLEGED VIOLATION OF SUPERVISION HAS OCCURRED, FOR THE PURPOSE
OF HEARING PETITIONS TO REVOKE SUPERVISION AND IMPOSE A TERM OF CUSTODY.
  4. UNDER NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS  SECTION  RESULT
IN  THE  IMPOSITION  OF A TERM LONGER THAN THE ORIGINAL SENTENCE, OR THE
REINSTATEMENT OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA  AGREE-
MENT.
  5.  A  PERSON  WHO  HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION
UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETH-
ER BY TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE  BEEN  GUILTY
OF  AN  OFFENSE OR WHO WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT
AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN APPLICATION BEFORE THE
TRIAL COURT THAT ENTERED THE JUDGMENT OF CONVICTION IN HIS OR  HER  CASE
TO  HAVE  THE CONVICTION, IN ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-
ONE OF THE PENAL LAW: (A) DISMISSED BECAUSE THE PRIOR CONVICTION IS  NOW
LEGALLY  INVALID  AND  SEALED  IN ACCORDANCE WITH SECTION 160.50 OF THIS
CHAPTER; (B) REDESIGNATED (OR "RECLASSIFIED") AS A VIOLATION AND  SEALED
IN  ACCORDANCE  WITH SECTION 160.50 OF THIS CHAPTER; OR (C) REDESIGNATED
(RECLASSIFIED) AS A MISDEMEANOR.
  6. THE COURT SHALL PRESUME THE PETITIONER SATISFIES  THE  CRITERIA  IN
SUBDIVISION  FIVE OF THIS SECTION UNLESS THE PARTY OPPOSING THE APPLICA-
TION PROVES BY CLEAR AND CONVINCING EVIDENCE THAT  THE  PETITIONER  DOES
NOT  SATISFY  THE CRITERIA IN SUBDIVISION FIVE OF THIS SECTION. ONCE THE
APPLICANT SATISFIES THE CRITERIA IN SUBDIVISION FIVE  OF  THIS  SECTION,
THE COURT SHALL REDESIGNATE (OR "RECLASSIFY") THE CONVICTION AS A MISDE-

S. 7509                            166                           A. 9509

MEANOR,  REDESIGNATE (RECLASSIFY) THE CONVICTION AS A VIOLATION AND SEAL
THE CONVICTION, OR DISMISS AND SEAL THE CONVICTION  AS  LEGALLY  INVALID
UNDER THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT THE TIME OF HIS OR
HER CONVICTION.
  7. UNLESS REQUESTED BY THE APPLICANT, NO HEARING IS NECESSARY TO GRANT
OR DENY AN APPLICATION FILED UNDER SUBDIVISION FIVE OF THIS SECTION.
  8.  ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER SUBDI-
VISION TWO OR DESIGNATED AS A MISDEMEANOR OR VIOLATION UNDER SUBDIVISION
SIX OF THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR OR  VIOLATION  FOR
ALL PURPOSES. ANY MISDEMEANOR CONVICTION THAT IS VACATED AND RESENTENCED
UNDER SUBDIVISION TWO OF THIS SECTION OR DESIGNATED AS A VIOLATION UNDER
SUBDIVISION  SIX OF THIS SECTION SHALL BE CONSIDERED A VIOLATION FOR ALL
PURPOSES.
  9. IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAILABLE,
THE PRESIDING JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE ON  THE  PETI-
TION OR APPLICATION.
  10.  NOTHING  IN  THIS SECTION IS INTENDED TO DIMINISH OR ABROGATE ANY
RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
  11. NOTHING IN THIS AND RELATED SECTIONS IS INTENDED  TO  DIMINISH  OR
ABROGATE  THE  FINALITY  OF JUDGMENTS IN ANY CASE NOT FALLING WITHIN THE
PURVIEW OF THIS SECTION.
  12. THE PROVISIONS OF THIS SECTION SHALL  APPLY  EQUALLY  TO  JUVENILE
DELINQUENCY  ADJUDICATIONS  AND  DISPOSITIONS UNDER SECTION FIVE HUNDRED
ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
AN OFFENSE OR WOULD HAVE BEEN GUILTY OF  A  LESSER  OFFENSE  UNDER  THIS
SECTION  HAD  THIS  SECTION  BEEN  IN  EFFECT  AT THE TIME OF HIS OR HER
CONVICTION.
  13. THE OFFICE OF  COURT  ADMINISTRATION  SHALL  PROMULGATE  AND  MAKE
AVAILABLE  ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS AND
APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING
THE EFFECTIVE DATE OF THIS SECTION.
  § 56. Transfer of employees. Notwithstanding any  other  provision  of
law, rule, or regulation to the contrary, upon the transfer of any func-
tions from the department of health to the office of cannabis management
for the regulation and control of medical cannabis pursuant to this act,
employees  performing those functions shall be transferred to the office
of cannabis management pursuant to subdivision 2 of section  70  of  the
civil  service law. Employees transferred pursuant to this section shall
be transferred without further examination or  qualification  and  shall
retain  their  respective  civil  service  classifications,  status  and
collective bargaining unit designations and collective bargaining agree-
ments.  The civil service department may re-classify any person employed
in a permanent, classified, competitive, or exempt class position  imme-
diately  prior to being transferred to the office of cannabis management
pursuant to subdivision 2 of section 70 of the  civil  service  law,  to
align  with  the  duties  and  responsibilities  of their positions upon
transfer.  Employees whose positions are subsequently  re-classified  to
align with the duties and responsibilities of their positions upon being
transferred  to  the office of cannabis management shall hold such posi-
tions without further examination or qualification. Notwithstanding  any
other  provision  of  this act, the names of those competitive permanent
employees on promotion eligible lists in their former  department  shall
be  added and interfiled on a promotion eligible list in the new office,
as the state civil service department deems appropriate.
  § 57. Transfer of records. All books,  papers,  and  property  of  the
department  of health related to the administration of the medical mari-

S. 7509                            167                           A. 9509

juana program shall be deemed to be in the possession of  the  executive
director  of  the office of cannabis management and shall continue to be
maintained by the office of cannabis management.
  §  58.  Continuity  of authority. For the purpose of succession of all
functions, powers, duties and obligations transferred and  assigned  to,
devolved  upon  and  assumed  by  it pursuant to this act, the office of
cannabis management shall be deemed and held to constitute the continua-
tion of the department of health's medical marijuana program.
  § 59. Completion of unfinished business. Any business or other  matter
undertaken  or  commenced  by  the department of health pertaining to or
connected with the functions,  powers,  obligations  and  duties  hereby
transferred  and assigned to the office of cannabis management and pend-
ing on the effective date of this act, may be conducted and completed by
the office of cannabis management.
  § 60. Continuation of rules and regulations. All  rules,  regulations,
acts,  orders, determinations, and decisions of the department of health
pertaining to medical marijuana,  including  the  functions  and  powers
transferred  and  assigned pursuant to this act, in force at the time of
such transfer and assumption, shall continue in full force and effect as
rules, regulations, acts, orders, determinations and  decisions  of  the
office  of  cannabis  management until duly modified or abrogated by the
board of the office of cannabis management.
  § 61. Terms occurring in laws, contracts and other documents.  Whenev-
er the department of health, or commissioner thereof, is referred to  or
designated in any law, contract or document pertaining to the functions,
powers, obligations and duties hereby transferred to and assigned to the
office  of  cannabis  management, such reference or designation shall be
deemed to refer to the board of cannabis management,  or  the  executive
director thereof, as applicable.
  §  62.  Existing  rights  and remedies preserved. No existing right or
remedy of any character shall be  lost,  impaired  or  affected  by  any
provisions of this act.
  § 63. Pending actions and proceedings. No action or proceeding pending
at  the  time when this act shall take effect, brought by or against the
department of health, or the commissioner thereof, shall be affected  by
any provision of this act, but the same may be prosecuted or defended in
the name of the executive director of the office of cannabis management.
In  all  such  actions  and  proceedings,  the executive director of the
office of cannabis management, upon application to the court,  shall  be
substituted as a party.
  § 63-a. Severability. If any clause, sentence, paragraph, subdivision,
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 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.
  § 64. This act shall take effect immediately; provided, however that:
  (i)  sections 92, 93 and 109 of article 5 of the cannabis law as added
by section two of this act shall take effect January 1, 2021;
  (ii) section six-a of this act shall take effect on the same  date  as
chapter 614 of the laws of 2019, takes effect;
  (iii) the amendments to  subdivision 1 of section 171-a of the tax law
made  by section thirty-four of this act shall not affect the expiration

S. 7509                            168                           A. 9509

of such subdivision and shall expire therewith, when upon such date  the
provisions of section thirty-four-a of this act shall take effect;
  (iv) the taxes imposed by section thirty-seven of this act shall apply
on  and  after  April 1, 2021 to:   (1) the sale or transfer of cannabis
flower, cannabis trim or wet cannabis to any person; (2) cultivation  of
cannabis  flower,  cannabis  trim  or  wet cannabis by a person licensed
under the cannabis law as a  microbusiness,  cooperative  or  registered
organization; (3) the sale or transfer of adult-use cannabis products to
a  retail dispensary; and (4) the sale of adult-use cannabis products to
a consumer by a retail dispensary operated by a  person  licensed  under
the  cannabis  law  as a registered organization; and provided, further,
that the exemption provided by section thirty-eight of  this  act  shall
apply to sales made or uses occurring on and after April 1, 2021;
  (v)  the  amendments  to  article 179 of the penal law made by section
forty-six of this act shall not affect the repeal of  such  article  and
shall be deemed to be repealed therewith;
  (vi)  the  amendments to section 89-h of the state finance law made by
section forty-nine of this act shall  not  affect  the  repeal  of  such
section and shall be deemed repealed therewith;
  (vii)  the  amendments  to  section  221.00  of  the penal law made by
section fourteen of this act shall be subject to the expiration of  such
section  when  upon  such date the provisions of section fifteen of this
act shall take effect;
  (viii) the amendments to subdivision 2 of section 3371 of  the  public
health  law  made  by section fifty-one of this act shall not affect the
expiration of such subdivision and shall be deemed to expire therewith;
  (ix) the amendments to subdivision 3 of section  853  of  the  general
business  law made by section fifty-two of this act shall not affect the
repeal of such subdivision and shall be deemed to be repealed therewith;
and
  (x) the amendments to subdivision 5 of section 410.91 of the  criminal
procedure  law  made by section fifty-three of this act shall not affect
the repeal of such section and shall be subject to  the  expiration  and
reversion  of  such  subdivision  when  upon such date the provisions of
section fifty-four of this act shall take effect.
  § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  §  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A through BB 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. 7509--A                                            A. 9509--A

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

                            January 22, 2020
                               ___________

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 59 of the laws of 2017, amending the
  tax law, relating to the financial institution data match  system  for
  state  tax  collection purposes, in relation to making such provisions
  permanent; and to amend part Q of chapter 59  of  the  laws  of  2013,
  amending  the  tax  law  relating  to serving an income execution with
  respect to  individual  tax  debtors  without  filing  a  warrant,  in
  relation  to  making  such provisions permanent (Part A); to amend the
  tax law, in relation to extending hire a veteran credit for  an  addi-
  tional  two  years (Part B); to amend chapter 540 of the laws of 1992,
  amending the real property tax law relating to oil and gas charges, in
  relation to the effectiveness thereof (Part C); to amend the tax  law,
  in  relation  to  reducing the burden on small businesses (Part D); to
  amend the tax law, in relation to capping the maximum  amount  of  the
  long-term care insurance credit (Part E); to amend the tax law and the
  administrative  code  of the city of New York, in relation to allowing
  the department of taxation  and  finance  to  provide  taxpayers  with
  unclaimed  tax  benefits  relating  to  the  earned  income credit and
  deductions (Part F); to amend the tax law, in relation  to  the  defi-
  nition  of  a qualifying child for purposes of the  empire state child
  credit (Part G); to amend the tax law, in relation  to  reforming  the
  tobacco products tax (Part H); to amend the alcoholic beverage control
  law  and  the tax law, in relation to the suspension and revocation of
  certain licenses and certificates issued under such laws (Part I);  to
  amend  the tax law, in relation to the tax imposed on alcoholic bever-
  ages and the annual reporting requirements imposed on alcoholic bever-
  age producers (Part J); to amend the tax law, in relation to  updating
  the criminal tax fraud statutes and to establish the offenses of crim-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12674-05-0

S. 7509--A                          2                         A. 9509--A

  inal tax preparation in the second degree and criminal tax preparation
  in  the  first  degree (Part K); to amend the economic development law
  and the tax law, in relation to the excelsior jobs program and certain
  incentives  for  green projects within such program (Part L); to amend
  the tax law, in relation to the empire state  film  production  credit
  and  the  empire  state film post production credit (Part M); to amend
  the real property tax law, in relation to converted condominiums (Part
  N); to amend the tax law, in relation to state support for  the  local
  enforcement  of  past-due  property  taxes (Part O); to amend the real
  property tax law, in relation to providing for the appointment  of  an
  acting  director  of real property tax services in the event the posi-
  tion becomes vacant (Part P); to amend the real property law  and  tax
  law,  in  relation  to  the electronic submission of consolidated real
  property transfer forms; and to repeal  paragraphs  vii  and  viii  of
  subdivision 1-e of section 333 of the real property law relating ther-
  eto  (Part  Q);  to amend the public lands law, the real property law,
  and the real property tax law, in relation to  the  functions  of  the
  state  board  of  real  property  tax  services; and to repeal certain
  provisions of the real property tax law related thereto (Part  R);  to
  repeal  certain  provisions  of  the real property tax law and the tax
  law, in relation to removing references  to  the  former  STAR  offset
  program  (Part  S); to amend the real property tax law, in relation to
  assessment ceilings for railroads and local public utility  mass  real
  property;  and  to repeal section 3 of chapter 475 of the laws of 2013
  amending the real property tax law relating to assessment ceilings for
  local public utility mass real property (Part T); to  amend  the  real
  property  tax  law, in relation to extending the period for enrollment
  in the STAR income verification program (Part U); to amend the racing,
  pari-mutuel wagering and breeding law and the tax law, in relation  to
  financing  and constructing a new equine drug testing laboratory (Part
  V); to amend the racing, pari-mutuel wagering  and  breeding  law,  in
  relation  to  enacting  the interstate compact on anti-doping and drug
  testing standards (Part W); to amend the racing, pari-mutuel  wagering
  and  breeding  law,  in  relation  to  restrictions on sports wagering
  lounges in casinos (Part X); to amend the tax law, in  relation  to  a
  keno  style  lottery  game  (Part Y); 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  breed-
  ing  law  and other laws relating to simulcasting and to amend chapter
  346 of the laws of 1990 amending the racing, pari-mutuel wagering  and
  breeding  law  and other laws relating to simulcasting and the 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 Z);  to
  amend  the  real property tax law, in relation to the income limit for
  the basic STAR exemption (Part AA); and 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

S. 7509--A                          3                         A. 9509--A

  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 of taxes on
  cannabis; to amend the criminal procedure law, the civil practice  law
  and  rules,  the  general business law, the alcoholic beverage control
  law, the general obligations law, the social services law,  the  state
  finance  law,  the  penal  law  and  the  vehicle  and traffic law, in
  relation to making conforming changes; 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  proce-
  dure  law  relating  to  medical  use of marihuana, in relation to the
  effectiveness thereof; to repeal title 5-A of article 33 of the public
  health law relating to medical use of  marihuana;  to  repeal  article
  29-A  of the agriculture and markets law relating to the regulation of
  hemp extract; to repeal subdivision 4 of section 220.06  and  subdivi-
  sion  10  of  section  220.09  of  the  penal law relating to criminal
  possession of a controlled substance; to repeal  sections  221.10  and
  221.30  of  the penal law relating to the criminal possession of mari-
  huana; and to repeal paragraph (f) of subdivision 2 of section 850  of
  the  general business law relating to drug related paraphernalia (Part
  BB)

  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 2020-2021
state fiscal year. Each component is  wholly  contained  within  a  Part
identified as Parts A through BB. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of  this  act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding  section  of  the
Part  in  which  it  is  found. Section three of this act sets forth the
general effective date of this act.

                                 PART A

  Section 1. Section 2 of part U of chapter 59  of  the  laws  of  2017,
amending  the  tax law, relating to the financial institution data match
system for state tax collection purposes, is amended to read as follows:
  § 2. This act shall take effect immediately [and shall expire April 1,
2020 when upon such date the provisions of  this  act  shall  be  deemed
repealed].
  §  2.  Section 2 of part Q of chapter 59 of the laws of 2013, amending
the tax law, relating to serving an income  execution  with  respect  to
individual tax debtors without filing a warrant, as amended by section 1
of  part  X  of  chapter  59  of the laws of 2017, is amended to read as
follows:
  § 2. This act shall take effect immediately [and shall expire  and  be
deemed repealed on and after April 1, 2020].
  § 3. This act shall take effect immediately.

S. 7509--A                          4                         A. 9509--A

                                 PART B

  Section 1. Paragraph (a) and subparagraph 2 of paragraph (b) of subdi-
vision  29  of  section 210-B of the tax law, as amended by section 1 of
part Q of chapter 59 of the  laws  of  2018,  are  amended  to  read  as
follows:
  (a) Allowance of credit. For taxable years beginning on or after Janu-
ary  first,  two thousand fifteen and before January first, two thousand
[twenty-one] TWENTY-THREE, a taxpayer shall be allowed a credit,  to  be
computed  as  provided  in  this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than one  year  and
for not less than thirty-five hours each week, a qualified veteran with-
in the state. The taxpayer may claim the credit in the year in which the
qualified  veteran  completes one year of employment by the taxpayer. If
the taxpayer claims the  credit  allowed  under  this  subdivision,  the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.
  (2) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand [twenty] TWENTY-TWO; and
  § 2. Paragraph 1 and subparagraph (B) of  paragraph  2  of  subsection
(a-2)  of  section 606 of the tax law, as amended by section 2 of part Q
of chapter 59 of the laws of 2018, are amended to read as follows:
  (1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first,  two  thousand
[twenty-one]  TWENTY-THREE,  a taxpayer shall be allowed a credit, to be
computed as provided in this subsection, against the tax imposed by this
article, for hiring and employing, for not less than one  year  and  for
not  less  than  thirty-five hours each week, a qualified veteran within
the state.  The taxpayer may claim the credit in the year in  which  the
qualified  veteran  completes one year of employment by the taxpayer. If
the taxpayer claims  the  credit  allowed  under  this  subsection,  the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.
  (B) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand [twenty] TWENTY-TWO; and
  § 3. Paragraph 1 and subparagraph (B) of paragraph  2  of  subdivision
(g-1)  of section 1511 of the tax law, as amended by section 3 of part Q
of chapter 59 of the laws of 2018, are amended to read as follows:
  (1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first,  two  thousand
[twenty-one]  TWENTY-THREE,  a taxpayer shall be allowed a credit, to be
computed as provided in this subdivision, against  the  tax  imposed  by
this  article,  for hiring and employing, for not less than one year and
for not less than thirty-five hours each week, a qualified veteran with-
in the state.  The taxpayer may claim the credit in the  year  in  which
the  qualified veteran completes one year of employment by the taxpayer.
If the taxpayer claims the credit allowed under  this  subdivision,  the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.

S. 7509--A                          5                         A. 9509--A

  (B) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand [twenty] TWENTY-TWO; and
  § 4. This act shall take effect immediately.

                                 PART C

  Section  1. Section 2 of chapter 540 of the laws of 1992, amending the
real property tax law relating to oil and gas  charges,  as  amended  by
section  1  of  part  I of chapter 59 of the laws of 2017, is amended to
read as follows:
  § 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law  as  added  by section one of this act shall first be due for values
for assessment rolls with tentative completion dates after July 1, 1992,
and provided further, that this act  shall  remain  in  full  force  and
effect  until  March  31,  [2021] 2024, at which time section 593 of the
real property tax law as added by section  one  of  this  act  shall  be
repealed.
  § 2. This act shall take effect immediately.

                                 PART D

  Section  1.  Subparagraph  (iv)  of  paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 12 of part A of  chap-
ter 59 of the laws of 2014, is amended to read as follows:
  (iv)  for  taxable  years beginning before January first, two thousand
sixteen, if the business income base is not more than two hundred ninety
thousand dollars the amount shall be six and  one-half  percent  of  the
business  income  base;  if  the  business  income base is more than two
hundred ninety thousand dollars but not over three hundred ninety  thou-
sand  dollars the amount shall be the sum of (1) eighteen thousand eight
hundred fifty dollars, (2) seven and one-tenth percent of the excess  of
the  business  income  base over two hundred ninety thousand dollars but
not over three hundred ninety thousand dollars and (3) four and  thirty-
five  hundredths  percent of the excess of the business income base over
three hundred fifty thousand dollars but not over three  hundred  ninety
thousand dollars. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO  THOUSAND TWENTY-ONE THE AMOUNT SHALL BE FOUR PERCENT OF THE TAXPAY-
ER'S BUSINESS INCOME BASE;
  § 2. Paragraph (d) of subdivision 1 of section 210-B of the  tax  law,
as amended by section 31 of part T of chapter 59 of the laws of 2015, is
amended to read as follows:
  (d) Except as otherwise provided in this paragraph, the credit allowed
under this subdivision for any taxable year shall not reduce the tax due
for such year to less than the fixed dollar minimum amount prescribed in
paragraph  (d)  of  subdivision  one  of section two hundred ten of this
article. However, if the amount of credit allowable under this  subdivi-
sion  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  allowed  for a taxable year commencing prior to
January first, nineteen hundred eighty-seven and not deductible in  such
taxable  year may be carried over to the following year or years and may
be deducted from the taxpayer's tax for such year or  years  but  in  no
event  shall  such credit be carried over to taxable years commencing on

S. 7509--A                          6                         A. 9509--A

or after January first, two thousand  two,  and  any  amount  of  credit
allowed  for  a taxable year commencing on or after January first, nine-
teen hundred eighty-seven and not deductible in such year may be carried
over  to  the fifteen taxable years next following such taxable year and
may be deducted from the taxpayer's tax for such year or years.  In lieu
of such carryover, any such taxpayer which qualifies as a  new  business
under  paragraph (f) of this subdivision OR A TAXPAYER THAT QUALIFIES AS
AN ELIGIBLE FARMER FOR PURPOSES OF PARAGRAPH (B) OF  SUBDIVISION  ELEVEN
OF  THIS  SECTION  may elect to treat the amount of such carryover as an
overpayment of tax to be credited or refunded  in  accordance  with  the
provisions  of section ten hundred eighty-six of this chapter, provided,
however, the provisions of subsection (c) of section ten hundred  eight-
y-eight of this chapter notwithstanding, no interest shall be paid ther-
eon.
  §  3.  Paragraph 5 of subsection (a) of section 606 of the tax law, as
amended by chapter 170 of the laws  of  1994,  is  amended  to  read  as
follows:
  (5)  If  the  amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year,  the  excess
allowed  for  a taxable year commencing prior to January first, nineteen
hundred eighty-seven may be carried over to the following year or  years
and  may be deducted from the taxpayer's tax for such year or years, but
in no event shall such credit be carried over to taxable years  commenc-
ing  on  or  after January first, nineteen hundred ninety-seven, and any
amount of credit allowed for a taxable year commencing on or after Janu-
ary first, nineteen hundred eighty-seven and not deductible in such year
may be carried over to the ten taxable years next following such taxable
year and may be deducted from the taxpayer's tax for such year or years.
In lieu of carrying over any such excess, a taxpayer who qualifies as an
owner of a new business for purposes of paragraph ten of this subsection
OR A TAXPAYER WHO QUALIFIES AS AN ELIGIBLE FARMER FOR PURPOSES OF  PARA-
GRAPH  TWO OF SUBSECTION (N) OF THIS SECTION may, at his option, receive
such excess as a refund. Any refund  paid  pursuant  to  this  paragraph
shall  be  deemed to be a refund of an overpayment of tax as provided in
section six hundred eighty-six of this article, provided, however,  that
no interest shall be paid thereon.
  §  4. Paragraph 39 of subsection (c) of section 612 of the tax law, as
added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
amended to read as follows:
  (39)  In  the case of a taxpayer who is a small business who has busi-
ness income and/or farm income as defined in  the  laws  of  the  United
States,  an  amount  equal  to three percent of the net items of income,
gain, loss and deduction attributable to such business or farm  entering
into  federal adjusted gross income, but not less than zero, for taxable
years beginning after two thousand thirteen, an amount  equal  to  three
and  three-quarters  percent  of the net items of income, gain, loss and
deduction attributable to such business or farm  entering  into  federal
adjusted  gross income, but not less than zero, for taxable years begin-
ning after two thousand fourteen, [and] an amount equal to five  percent
of  the  net  items  of income, gain, loss and deduction attributable to
such business or farm entering into federal adjusted gross  income,  but
not  less  than  zero,  for  taxable  years beginning after two thousand
fifteen, AND AN AMOUNT EQUAL TO FIFTEEN PERCENT  OF  THE  NET  ITEMS  OF
INCOME,  GAIN,  LOSS AND DEDUCTION ATTRIBUTABLE TO SUCH BUSINESS OR FARM
ENTERING INTO FEDERAL ADJUSTED GROSS INCOME, BUT NOT LESS THAN ZERO, FOR
TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY. For the  purposes  of

S. 7509--A                          7                         A. 9509--A

this  paragraph, the term small business shall mean a sole proprietor or
a farm business who employs one or more persons during the taxable  year
and  who  has  net  business  income or net farm income of less than two
hundred fifty thousand dollars.
  §  5. Paragraph 1 of subsection (c) of section 1085 of the tax law, as
amended by section 4 of part KK of chapter 59 of the laws  of  2018,  is
amended to read as follows:
  (1)  If  any  taxpayer,  EXCEPT A NEW YORK S CORPORATION AS DEFINED IN
SUBDIVISION ONE-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER, fails to
file a declaration of estimated tax under article nine-A of  this  chap-
ter, or fails to pay all or any part of an amount which is applied as an
installment  against such estimated tax, it shall be deemed to have made
an underpayment of estimated tax. There shall be added to  the  tax  for
the  taxable  year an amount at the underpayment rate set by the commis-
sioner pursuant to section one thousand ninety-six of this  article,  or
if  no  rate is set, at the rate of seven and one-half percent per annum
upon the amount of the underpayment for the period of  the  underpayment
but not beyond the fifteenth day of the fourth month following the close
of  the  taxable year. Provided, however, that, for taxable years begin-
ning on or after January first, two thousand seventeen and before  Janu-
ary  first,  two  thousand eighteen, no amount shall be added to the tax
with respect to the portion of such tax related to  the  amount  of  any
interest  deductions  directly  or indirectly attributable to the amount
included in exempt CFC income pursuant to subparagraph (ii) of paragraph
(b) of subdivision six-a of section two hundred eight of this chapter or
the forty percent reduction of such exempt CFC income in lieu of  inter-
est  attribution  if the election described in paragraph (b) of subdivi-
sion six-a of such section is made. The amount of the underpayment shall
be, with respect to any installment of estimated  tax  computed  on  the
basis  of either the preceding year's tax or the second preceding year's
tax, the excess of the amount required to be paid over  the  amount,  if
any, paid on or before the last day prescribed for such payment or, with
respect  to  any  other  installment of estimated tax, the excess of the
amount of the installment which would be required  to  be  paid  if  the
estimated  tax  were equal to ninety-one percent of the tax shown on the
return for the taxable year (or  if  no  return  was  filed,  ninety-one
percent  of  the  tax  for  such  year)  over the amount, if any, of the
installment paid on or before the last day prescribed for such  payment.
In  any case in which there would be no underpayment if "eighty percent"
were substituted for "ninety-one percent" each place it appears in  this
subsection,  the  addition  to  the  tax  shall be equal to seventy-five
percent of the amount otherwise determined.  No  underpayment  shall  be
deemed  to  exist with respect to a declaration or installment otherwise
due on or after the termination of existence of the taxpayer.
  § 6. This act shall take effect  immediately;  provided  however  that
sections  two  and three of this act shall apply to property acquired by
purchase on or after January 1, 2021, and section five of this act shall
apply to taxable years beginning on or after January 1, 2020.

                                 PART E

  Section 1. Paragraph 1 of subsection (aa) of section 606  of  the  tax
law,  as  amended  by  section  1 of part P of chapter 61 of the laws of
2005, is amended to read as follows:
  (1) Residents. [A taxpayer] THERE shall be allowed  a  credit  against
the  tax imposed by this article IN AN AMOUNT equal to twenty percent of

S. 7509--A                          8                         A. 9509--A

the [premium] PREMIUMS paid during the taxable year for  long-term  care
insurance.  THE CREDIT AMOUNT SHALL NOT EXCEED ONE THOUSAND FIVE HUNDRED
DOLLARS  AND  SHALL  BE  ALLOWED ONLY IF THE AMOUNT OF NEW YORK ADJUSTED
GROSS  INCOME  REQUIRED  TO  BE  REPORTED ON THE RETURN IS LESS THAN TWO
HUNDRED FIFTY THOUSAND DOLLARS. In order to qualify for such credit, the
taxpayer's premium payment must be for the purchase of or for continuing
coverage under a long-term care insurance policy that qualifies for such
credit pursuant to section one thousand one  hundred  seventeen  of  the
insurance  law.  If  the  amount  of  the  credit  allowable  under this
subsection for any taxable year shall exceed the taxpayer's tax for such
year, the excess may be carried over to the following year or years  and
may be deducted from the taxpayer's tax for such year or years.
  § 2. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2020.

                                 PART F

  Section  1.  Paragraph  6  of subsection (d) of section 606 of the tax
law, as amended by section 3 of part V of chapter  60  of  the  laws  of
2004, is amended to read as follows:
  (6)  Notification.  (A)  The  commissioner shall periodically, but not
less than every three years, make efforts to alert taxpayers that may be
currently eligible to receive the credit provided under this subsection,
and the  credit  provided  under  any  local  law  enacted  pursuant  to
subsection  (f)  of  section thirteen hundred ten of this chapter, as to
their potential eligibility. In making the determination  of  whether  a
taxpayer  may  be  eligible  for such credit, the commissioner shall use
such data as may be appropriate and available, including, but not limit-
ed to, data available from the United  States  Department  of  Treasury,
Internal  Revenue  Service  and  New  York  state income tax returns for
preceding tax years.
  (B) IF THE DEPARTMENT DETERMINES THAT  THE  TAXPAYER  IS  ELIGIBLE  TO
RECEIVE  THE  CREDIT  PROVIDED UNDER THIS SUBSECTION BUT HAS NOT CLAIMED
SUCH CREDIT ON HIS OR HER RETURN, THE DEPARTMENT, AT ITS DISCRETION, MAY
COMPUTE THE TAXPAYER'S LIABILITY AND ALLOW THE CREDIT, AND, IF  APPLICA-
BLE,  ISSUE  ANY  REFUND  FOR THE ALLOWABLE CREDIT AMOUNT PROVIDED UNDER
THIS SUBSECTION. ANY REFUND PAID PURSUANT TO THIS SUBPARAGRAPH SHALL  BE
DEEMED  TO  BE  A REFUND OF AN OVERPAYMENT OF TAX AS PROVIDED IN SECTION
SIX HUNDRED EIGHTY-SIX OF  THIS  ARTICLE,  PROVIDED,  HOWEVER,  THAT  NO
INTEREST SHALL BE PAID THEREON.
  §  2.  Subsection  (f)  of  section  1310 of the tax law is amended by
adding a new paragraph 6 to read as follows:
  (6) IF THE DEPARTMENT DETERMINES THAT  THE  TAXPAYER  IS  ELIGIBLE  TO
RECEIVE  THE  CREDIT  PROVIDED UNDER THIS SUBSECTION BUT HAS NOT CLAIMED
SUCH CREDIT ON HIS OR HER RETURN, THE DEPARTMENT, AT ITS DISCRETION, MAY
COMPUTE AND ISSUE ANY REFUND FOR THE ALLOWABLE  CREDIT  AMOUNT  PROVIDED
UNDER  THIS SUBSECTION. ANY REFUND PAID PURSUANT TO THIS PARAGRAPH SHALL
BE DEEMED TO BE A REFUND OF AN OVERPAYMENT OF TAX AS PROVIDED IN SECTION
SIX HUNDRED EIGHTY-SIX OF  THIS  CHAPTER,  PROVIDED,  HOWEVER,  THAT  NO
INTEREST SHALL BE PAID THEREON.
  §  3.  Section 613 of the tax law, as added by chapter 563 of the laws
of 1960, is amended to read as follows:
  § 613. New York deduction of a resident  individual.    The  New  York
deduction  of  a  resident  individual  shall  be  his New York standard
deduction unless he elects to deduct his  New  York  itemized  deduction
under  the  conditions  set forth in section six hundred fifteen OF THIS

S. 7509--A                          9                         A. 9509--A

ARTICLE. IF AN INDIVIDUAL TAXPAYER HAS ELECTED TO DEDUCT  HIS  NEW  YORK
ITEMIZED  DEDUCTION  COMPUTED PURSUANT TO SECTION SIX HUNDRED FIFTEEN OF
THIS ARTICLE, BUT THE DEPARTMENT DETERMINES THAT THE NEW  YORK  STANDARD
DEDUCTION  ALLOWABLE  PURSUANT  TO  SECTION SIX HUNDRED FOURTEEN OF THIS
ARTICLE IS GREATER, THE DEPARTMENT  MAY  RECOMPUTE  THE  TAXPAYER'S  TAX
LIABILITY  PURSUANT  TO SECTION SIX HUNDRED ELEVEN OF THIS ARTICLE USING
THE NEW YORK STANDARD DEDUCTION PROVIDED IN SECTION SIX HUNDRED FOURTEEN
OF THIS ARTICLE. THE DEPARTMENT WILL NOTIFY THE TAXPAYER OF ANY  ADJUST-
MENT TO THE ELECTION.
  §  4. Subdivision (d) of section 11-1706 of the administrative code of
the city of New York is amended by adding a new paragraph 5 to  read  as
follows:
  (5)  IF THE STATE COMMISSIONER OF TAXATION AND FINANCE DETERMINES THAT
THE TAXPAYER IS ELIGIBLE TO  RECEIVE  THE  CREDIT  PROVIDED  UNDER  THIS
SUBDIVISION  BUT  HAS  NOT CLAIMED SUCH CREDIT ON HIS OR HER RETURN, THE
STATE COMMISSIONER OF TAXATION AND FINANCE, AT HIS  OR  HER  DISCRETION,
MAY  COMPUTE  AND  ISSUE  ANY  REFUND  FOR  THE  ALLOWABLE CREDIT AMOUNT
PROVIDED UNDER THIS SUBDIVISION. ANY REFUND PAID PURSUANT TO THIS  PARA-
GRAPH  SHALL  BE  DEEMED  TO  BE  A  REFUND  OF AN OVERPAYMENT OF TAX AS
PROVIDED IN SECTION 11-1786 OF THIS TITLE, PROVIDED,  HOWEVER,  THAT  NO
INTEREST SHALL BE PAID THEREON.
  § 5. This act shall take effect immediately.

                                 PART G

  Section  1.  Paragraph 1 of subsection (c-1) of section 606 of the tax
law, as amended by section 1 of part P of chapter  59  of  the  laws  of
2018, is amended to read as follows:
  (1)  A  resident taxpayer shall be allowed a credit as provided herein
equal to the greater of one hundred dollars times the number of qualify-
ing children of the taxpayer or the applicable percentage of  the  child
tax  credit allowed the taxpayer under section twenty-four of the inter-
nal revenue code for the same taxable year for  each  qualifying  child.
Provided,  however,  in  the  case  of a taxpayer whose federal adjusted
gross income exceeds  the  applicable  threshold  amount  set  forth  by
section  24(b)(2) of the Internal Revenue Code, the credit shall only be
equal to the applicable percentage of the child tax credit  allowed  the
taxpayer under section 24 of the Internal Revenue Code for each qualify-
ing child. For the purposes of this subsection, a qualifying child shall
be  a  child  who  meets the definition of qualified child under section
24(c) of the internal revenue code and is at least four  years  of  age.
PROVIDED,  HOWEVER,  IN  THE CASE OF A RESIDENT TAXPAYER WITH A NEW YORK
STATE ADJUSTED GROSS INCOME OF FIFTY THOUSAND DOLLARS OR LESS, A  QUALI-
FYING  CHILD  SHALL  BE A CHILD WHO MEETS THE DEFINITION OF A QUALIFYING
CHILD UNDER SECTION 24(C) OF THE INTERNAL REVENUE CODE.  The  applicable
percentage   shall   be  thirty-three  percent.  For  purposes  of  this
subsection, any reference to section 24 of  the  Internal  Revenue  Code
shall  be a reference to such section as it existed immediately prior to
the enactment of Public Law 115-97.
  § 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2021.

                                 PART H

  Section 1. Subdivision 6 of section 470 of the tax law,  as  added  by
chapter 61 of the laws of 1989, is amended to read as follows:

S. 7509--A                         10                         A. 9509--A

  6. "Wholesale price." The [established] price for which a manufacturer
OR  OTHER  PERSON sells tobacco products to a distributor, INCLUDING THE
FEDERAL EXCISE TAXES PAID BY THE MANUFACTURER OR  OTHER  PERSON,  before
the  allowance  of  any  discount,  trade  allowance,  rebate  or  other
reduction.
  [In  the  absence  of such an established price, a manufacturer's] THE
invoice [price of any] RECEIVED BY A DISTRIBUTOR  WITH  RESPECT  TO  ITS
PURCHASE  OF  A  tobacco  product  shall  be presumptive evidence of the
wholesale price of such tobacco product[, and in its absence  the  price
at  which  such  tobacco products were purchased shall be presumed to be
the wholesale price, unless evidence of a lower wholesale price shall be
established or any industry standard of markups relating to the purchase
price in relation to the wholesale price shall be established].
  § 2. Subdivision 3 of section 481 of the tax law, as amended by  chap-
ter 190 of the laws of 1990, is amended to read as follows:
  3.  (A)  For  purposes of this chapter, the certificate of the commis-
sioner of taxation and finance to the effect that a tax or  fee  imposed
by  this  article  has not been paid, that a return required by or under
the provisions of this article has not been filed, or  that  information
has  not  been  supplied, as required by or under the provisions of this
article, or that a bond or other security required by or pursuant to the
provisions of this article has not been filed, or that books,  accounts,
records,  memoranda,  documents  or  papers  have  not  been supplied as
required by or pursuant to the authority of  this  article,  or  that  a
retail  dealer  or vending machine owner or operator is not currently or
validly registered as required by this  article  shall  be  prima  facie
evidence  that such tax or fee has not been paid, such return not filed,
such information not supplied, such bond or other  security  not  filed,
that  such books, accounts, records, memoranda, documents or papers have
not been supplied, or that such retail dealer or vending  machine  owner
or operator is not currently or validly registered.
  (B) ANY PERSON REQUIRED TO MAKE OR MAINTAIN RECORDS UNDER THIS ARTICLE
WHO FAILS TO MAINTAIN OR MAKE AVAILABLE SUCH RECORDS MAY BE SUBJECT TO A
PENALTY  NOT  TO  EXCEED ONE THOUSAND DOLLARS FOR EACH MONTHLY REPORTING
PERIOD OR PART THEREOF FOR WHICH RECORDS ARE NOT MAINTAINED OR  PROVIDED
BY  SUCH  PERSON.  THIS  PENALTY  IS  IN  ADDITION  TO ANY OTHER PENALTY
PROVIDED FOR IN THIS ARTICLE, BUT WILL NOT BE IMPOSED AND COLLECTED MORE
THAN ONCE FOR SUCH FAILURES FOR THE SAME REPORTING PERIOD OR PART THERE-
OF. IF THE COMMISSIONER DETERMINES THAT ANY FAILURE  DESCRIBED  IN  THIS
SUBDIVISION  FOR A GIVEN REPORTING PERIOD WAS ENTIRELY DUE TO REASONABLE
CAUSE AND NOT TO WILLFUL NEGLECT, THE COMMISSIONER MAY WAIVE THE PENALTY
IMPOSED FOR THAT PERIOD. THE PENALTIES IMPOSED BY THIS SUBDIVISION  WILL
BE  PAID  AND DISPOSED OF IN THE SAME MANNER AS OTHER REVENUES FROM THIS
ARTICLE.  THESE PENALTIES WILL BE DETERMINED, ASSESSED, COLLECTED,  PAID
AND  ENFORCED IN THE SAME MANNER AS THE TAX IMPOSED BY THIS ARTICLE, AND
ALL THE PROVISIONS OF THIS ARTICLE RELATING TO TAX WILL BE  DEEMED  ALSO
TO APPLY TO THE PENALTIES IMPOSED BY THIS SUBDIVISION.
  §  3. This act shall take effect on October 1, 2020; provided however,
that section one of  this  act  shall  apply  to  all  tobacco  products
possessed in this state for sale on or after such date.

                                 PART I

  Section 1. Section 17 of the alcoholic beverage control law is amended
by adding a new subdivision 3-a to read as follows:

S. 7509--A                         11                         A. 9509--A

  3-A. TO SUSPEND OR CANCEL ANY LICENSE PURSUANT TO AND CORRESPONDING IN
DURATION  WITH  AN  ACTION  OF  THE COMMISSIONER OF TAXATION AND FINANCE
UNDER SUBDIVISION FOUR OF SECTION FOUR HUNDRED EIGHTY-A OF THE TAX  LAW.
A  SUSPENSION  OR CANCELLATION UNDER THIS SUBDIVISION SHALL BE INITIATED
UPON  RECEIPT  BY THE AUTHORITY OF NOTICE FROM THE COMMISSIONER OF TAXA-
TION AND FINANCE OF SUCH ACTION UNDER SUBDIVISION FOUR OF  SECTION  FOUR
HUNDRED  EIGHTY-A  OF THE TAX LAW AND SHALL BE EFFECTIVE UPON SERVICE OF
AN ORDER BY THE AUTHORITY SERVED AT THE LICENSED PREMISES. SUCH  SUSPEN-
SION OR CANCELLATION ISSUED BY THE AUTHORITY SHALL BE APPEALABLE ONLY AS
PROVIDED  FOR  IN  PARAGRAPH  (B)  OF  SUBDIVISION  FOUR OF SECTION FOUR
HUNDRED EIGHTY-A OF THE TAX LAW. THE POWER TO ISSUE SUCH SUSPENSIONS  OR
CANCELLATIONS  MAY  BE DELEGATED TO THE CHAIRMAN, OR TO SUCH OTHER OFFI-
CERS OR EMPLOYEES AS MAY BE DESIGNATED BY THE CHAIRMAN.
  § 2. Subdivision 9 of section 470 of the tax law, as amended by  chap-
ter 61 of the laws of 1989, is amended to read as follows:
  9.  "Retail  dealer." Any person other than a wholesale dealer engaged
in selling cigarettes or tobacco products.  FOR PURPOSES OF SECTION FOUR
HUNDRED EIGHTY-A OF THIS ARTICLE AND SECTION ELEVEN HUNDRED  THIRTY-FOUR
OF THIS CHAPTER, SUCH TERM SHALL INCLUDE FOR EACH SUCH PERSON ENGAGED IN
SELLING  CIGARETTES OR TOBACCO PRODUCTS ALL "PERSONS REQUIRED TO COLLECT
TAX," AS DEFINED IN SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE
OF THIS CHAPTER.
  § 3. Section 470 of the tax law is amended by adding a new subdivision
21 to read as follows:
  21. "AFFILIATED PERSON." PERSONS ARE AFFILIATED PERSONS  WITH  RESPECT
TO  EACH  OTHER  WHERE  ONE OF SUCH PERSONS HAS AN OWNERSHIP INTEREST OF
MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT,  IN  THE  OTHER,  OR
WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR
INDIRECT,  IS  HELD  IN  EACH OF SUCH PERSONS BY ANOTHER PERSON, OR BY A
GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO  EACH
OTHER.
  §  3-a.  Subdivision  1  of section 480-A of the tax law is amended by
adding new paragraph (f), to read as follows:
  (F) IN ADDITION TO THE GROUNDS FOR REFUSAL OF A REGISTRATION SPECIFIED
IN SECTION ELEVEN HUNDRED  THIRTY-FOUR OF THIS CHAPTER, THE COMMISSIONER
MAY REFUSE TO REGISTER ANY PERSON AS A RETAIL DEALER WHERE ANY TAX UNDER
THIS CHAPTER, OR A TAX OR FEE ADMINISTERED BY THE COMMISSIONER UNDER ANY
OTHER LAW, HAS BEEN FINALLY DETERMINED TO BE DUE FROM  SUCH  PERSON,  OR
FROM  A  PERSON  REQUIRED  TO COLLECT TAX WITH RESPECT TO SUCH PERSON OR
ANOTHER PERSON, AND HAS NOT BEEN PAID.
  § 3-b. Paragraph (d) of subdivision 2 of section 480-A of the Tax Law,
as amended by chapter 760 of the laws of 1992, is  amended  to  read  as
follows:
  (d)  Except  as otherwise provided in this section, all the provisions
of article twenty-eight of this chapter relating to the personal liabil-
ity for the tax, administration, collection and  determination  of  tax,
and deposit and disposition of revenue, including section eleven hundred
thirty-eight  of  this  chapter  relating  to  determination  of tax and
section eleven hundred forty-five of this chapter (but  only  paragraphs
one  and  two  of subdivision (a) of such section) relating to penalties
and interest for failure to file a return or pay  tax  within  the  time
required,  shall apply to the applications for registration and the fees
for filing such applications required by this section  and  the  penalty
imposed pursuant to subdivision three of this section, as if such appli-
cations were returns required under section eleven hundred thirty-six of
this  chapter  and  such  filing fees, penalties and interest were taxes

S. 7509--A                         12                         A. 9509--A

required to be paid pursuant to such article twenty-eight, in  the  same
manner  and  with  the  same force and effect as if the language of such
provisions of such article twenty-eight had been  incorporated  in  full
into  this  article,  except  to  the  extent that any such provision is
either inconsistent with a provision of this section or is not  relevant
thereto  and  with such other modifications as may be necessary to adapt
the language of such provisions  to  the  provisions  of  this  section.
[Section  eleven  hundred thirty-four of such article twenty-eight shall
not apply to this section.] Provided, however, that the commissioner  of
taxation and finance shall refund or credit an application fee paid with
respect  to  the  registration of a vending machine or a retail place of
business in this state through which cigarettes or tobacco products were
to be sold if, prior to the beginning of the calendar year with  respect
to  which  such  registration  relates,  the certificate of registration
described in paragraph (a)  of  this  subdivision  is  returned  to  the
department  of  taxation  and  finance,  or if such certificate has been
destroyed, the retail dealer or vending machine operator  satisfactorily
accounts to the commissioner for the missing certificate, but such vend-
ing  machine  or  retail place of business may not be used to sell ciga-
rettes or tobacco products in this  state  during  such  calendar  year,
unless  it  is  re-registered.  The provisions of section eleven hundred
thirty-nine of this chapter shall apply to the refund or credit  author-
ized  by  the  preceding  sentence and for such purposes, such refund or
credit shall be deemed a refund of tax paid in error provided,  however,
no interest shall be allowed or paid on any such refund.
  §  4. Subdivision 4 of section 480-a of the tax law, as added by chap-
ter 629 of the laws of 1996, paragraph (d) as amended by chapter 262  of
the laws of 2000, is amended to read as follows:
  4.  (a)  If a retail dealer possesses or sells unstamped or unlawfully
stamped packages of cigarettes, or if a retail dealer is  also  licensed
as  an  agent  pursuant  to  section  four  hundred  seventy-two  and it
possesses unlawfully stamped packages of cigarettes or  sells  unstamped
or  unlawfully  stamped packages of cigarettes at retail, (i) its regis-
tration shall be [suspended] REVOKED for a period of [not more than  six
months]  ONE YEAR, or (ii) for a second such possession or sale within a
period of five years[, its] BY A RETAIL DEALER OR ANY AFFILIATED  PERSON
OF  SUCH  RETAIL  DEALER, THE registration OF SUCH RETAIL DEALER AND THE
REGISTRATION OF ANY RETAIL DEALER THAT IS AN AFFILIATED PERSON  OF  SUCH
RETAIL  DEALER shall be [suspended] REVOKED for a period of [up to thir-
ty-six months] THREE YEARS, or (iii) for a third such possession or sale
within a period of five years[, its] BY A RETAIL DEALER  OR  ANY  AFFIL-
IATED  PERSON  OF  SUCH  RETAIL  DEALER,  THE registration [may] OF SUCH
RETAIL DEALER AND THE REGISTRATION OF  ANY  RETAIL  DEALER  THAT  IS  AN
AFFILIATED PERSON OF SUCH RETAIL DEALER SHALL be revoked for a period of
[up to] five years. A retail dealer registration shall be [suspended or]
revoked  pursuant  to  this  subdivision  immediately upon such dealer's
receipt of written notice of [suspension or] revocation from the commis-
sioner. [If a retail dealer sells cigarettes through more than one place
of business in this state, the retail dealer registration shall  not  be
suspended  or  revoked pursuant to this subdivision, but the certificate
of registration issued to the place of business, cart, stand,  truck  or
other  merchandising  device where unstamped or unlawfully stamped ciga-
rettes were found shall be suspended or cancelled for possession or sale
of unstamped or unlawfully stamped packages of cigarettes,  as  if  such
certificate of registration were a retail dealer registration. A suspen-
sion  or  cancellation of a certificate of registration shall be treated

S. 7509--A                         13                         A. 9509--A

as if it  were  a  suspension  or  revocation  of  a  registration.]  If
unstamped  or  unlawfully stamped cigarettes are found in a retail deal-
er's warehouse OR A WAREHOUSE OF ANY AFFILIATED PERSON  OF  SUCH  RETAIL
DEALER,  the [suspension or] revocation of the retail dealer's registra-
tion pursuant to this subdivision shall be  applicable  to  each  retail
place of business in this state through which such retail dealer AND ANY
AFFILIATED PERSON OF SUCH RETAIL DEALER sells cigarettes.
  (b) A retail dealer who is notified of a [suspension or] revocation of
its  registration  pursuant  to this subdivision shall have the right to
have the [suspension or] revocation reviewed by the commissioner or  his
OR HER designee by contacting the department at a telephone number or an
address  to  be  disclosed  in  the notice of [suspension or] revocation
within ten days of such  dealer's  receipt  of  such  notification.  The
retail dealer may present written evidence or argument in support of its
defense  to the [suspension or] revocation, or may appear at a scheduled
conference with the commissioner or his OR HER designee to present  oral
arguments  and written and oral evidence in support of such defense. The
commissioner or his OR HER designee is authorized to delay the effective
date of the [suspension or] revocation to enable the  retail  dealer  to
present further evidence or arguments in connection with the [suspension
or] revocation. The commissioner or his OR HER designee shall cancel the
[suspension or] revocation of registration if the commissioner or his OR
HER  designee  is  not satisfied by a preponderance of the evidence that
the retail dealer possessed or  sold  unstamped  or  unlawfully  stamped
packages of cigarettes.
  (c)  An  order of [suspension or] revocation of a retail dealer regis-
tration shall not be reviewable by the division of tax appeals, but  may
be  reviewed pursuant to article seventy-eight of the civil practice law
and rules by a proceeding commenced in the  supreme  court  within  four
months  of  the  [suspension  or] revocation of registration petitioning
that the order of [suspension or] revocation be enjoined or  set  aside.
Such proceeding shall be instituted in the county where the commissioner
has  his  OR  HER principal office. Upon the filing of such petition the
court shall have jurisdiction to set aside such order of [suspension or]
revocation, in whole or in part, or to dismiss the petition. The  juris-
diction of the supreme court shall be exclusive and its order dismissing
the  petition  or  enjoining or setting aside such order, in whole or in
part, shall be final, subject to review by the appellate division of the
supreme court and the court of appeals in the same manner and  form  and
with the same effect as provided by law for appeals from a judgment in a
special  proceeding.  All such proceedings shall be heard and determined
by the court and by any appellate court as expeditiously as possible and
with lawful precedence over other civil matters.  All  such  proceedings
for  review shall be heard on the petition, transcript and other papers,
and on appeal shall be heard  on  the  record,  without  requirement  of
printing.
  (d)  After review of the [suspension or] revocation of registration by
the commissioner or his OR HER designee is complete, or the time  within
which a retail dealer may request such review has expired without such a
request  having been made, notice of the [suspension or] revocation of a
retail dealer registration pursuant to this subdivision shall  be  given
by  the  commissioner to the head of the division of the lottery for the
purpose of enforcement of section sixteen hundred seven of this  chapter
[and such division may suspend or revoke any license issued with respect
to  a  lottery agent's specific location pursuant to article thirty-four
of this chapter if such lottery agent is a retail dealer  of  cigarettes

S. 7509--A                         14                         A. 9509--A

whose registration for such location is suspended or revoked pursuant to
this  section].  In  addition, notice of such [suspension or] revocation
shall also be given to the  [division  of  alcoholic  beverage  control]
STATE LIQUOR AUTHORITY and such [suspension or] revocation shall consti-
tute  cause[,  for purposes of section one hundred eighteen of the alco-
holic beverage control law,] for revocation, cancellation or  suspension
of  any license or permit issued pursuant to [such] THE ALCOHOLIC BEVER-
AGE CONTROL law TO THE RETAIL DEALER OF CIGARETTES WHOSE REGISTRATION IS
REVOKED PURSUANT TO THIS SECTION.
  § 5. Subparagraph (A) of paragraph 4 of  subdivision  (a)  of  section
1134  of the tax law, as amended by section 21-a of part U of chapter 61
of the laws of 2011, is amended to read as follows:
  (A) Where a person who holds a certificate of authority (i)  willfully
fails to file a report or return required by this article, (ii) willful-
ly  files,  causes  to  be  filed, gives or causes to be given a report,
return, certificate or affidavit required under this  article  which  is
false,  (iii) willfully fails to comply with the provisions of paragraph
two or three of subdivision (e) of section eleven  hundred  thirty-seven
of  this  article,  (iv)  willfully fails to prepay, collect, truthfully
account for or pay over any tax imposed under this article  or  pursuant
to  the  authority  of article twenty-nine of this chapter, (v) fails to
obtain a bond pursuant to paragraph two of subdivision  (e)  of  section
eleven  hundred  thirty-seven  of  this  part, or fails to comply with a
notice issued by the commissioner pursuant to paragraph  three  of  such
subdivision,  [or]  (vi)  has  been convicted of a crime provided for in
this chapter, OR (VII) WHERE SUCH PERSON, OR ANY PERSON AFFILIATED  WITH
SUCH PERSON AS SUCH TERM IS DEFINED IN SUBDIVISION TWENTY-ONE OF SECTION
FOUR  HUNDRED SEVENTY OF THIS CHAPTER, HAS HAD A RETAIL DEALER REGISTRA-
TION ISSUED PURSUANT TO SECTION FOUR HUNDRED EIGHTY-A  OF  THIS  CHAPTER
REVOKED  PURSUANT  TO  PARAGRAPH (A) OF SUBDIVISION FOUR OF SUCH SECTION
FOUR HUNDRED EIGHTY-A, the  commissioner  may  revoke  or  suspend  such
certificate  of authority and all duplicates thereof. Provided, however,
that the commissioner may revoke or suspend a certificate  of  authority
based  on the grounds set forth in clause (vi) of this subparagraph only
where the conviction referred to occurred not more than one  year  prior
to the date of revocation or suspension; AND PROVIDED FURTHER THAT WHERE
THE COMMISSIONER REVOKES OR SUSPENDS A CERTIFICATE OF AUTHORITY BASED ON
THE GROUNDS SET FORTH IN CLAUSE (VII) OF THIS SUBPARAGRAPH, SUCH SUSPEN-
SION  OR  REVOCATION SHALL CONTINUE FOR AS LONG AS THE REVOCATION OF THE
RETAIL DEALER REGISTRATION PURSUANT TO SECTION FOUR HUNDRED EIGHTY-A  OF
THIS CHAPTER REMAINS IN EFFECT.
  §  6.  Subparagraph  (A)  of paragraph 4 of subdivision (a) of section
1134 of the tax law, as amended by chapter 2 of the  laws  of  1995,  is
amended to read as follows:
  (A)  Where a person who holds a certificate of authority (i) willfully
fails to file a report or return required by this article, (ii) willful-
ly files, causes to be filed, gives or causes  to  be  given  a  report,
return,  certificate  or  affidavit required under this article which is
false, (iii) willfully fails to comply with the provisions of  paragraph
two  or  three of subdivision (e) of section eleven hundred thirty-seven
of this article, (iv) willfully fails  to  prepay,  collect,  truthfully
account  for  or pay over any tax imposed under this article or pursuant
to the authority of article twenty-nine of this chapter,  [or]  (v)  has
been  convicted  of  a crime provided for in this chapter, OR (VI) WHERE
SUCH PERSON, OR ANY PERSON AFFILIATED WITH SUCH PERSON AS SUCH  TERM  IS
DEFINED  IN  SUBDIVISION  TWENTY-ONE  OF SECTION FOUR HUNDRED SEVENTY OF

S. 7509--A                         15                         A. 9509--A

THIS CHAPTER, HAS HAD A RETAIL DEALER REGISTRATION  ISSUED  PURSUANT  TO
SECTION  FOUR  HUNDRED  EIGHTY-A  OF  THIS  CHAPTER SUSPENDED OR REVOKED
PURSUANT TO PARAGRAPH (A) OF  SUBDIVISION  FOUR  OF  SUCH  SECTION  FOUR
HUNDRED  EIGHTY-A,  the  commissioner may revoke or suspend such certif-
icate of authority and all duplicates thereof. Provided,  however,  that
the  commissioner may revoke or suspend a certificate of authority based
on the grounds set forth in clause (v) of this subparagraph  only  where
the  conviction referred to occurred not more than one year prior to the
date of revocation or suspension; AND PROVIDED FURTHER  THAT  WHERE  THE
COMMISSIONER REVOKES OR SUSPENDS A CERTIFICATE OF AUTHORITY BASED ON THE
GROUNDS  SET  FORTH IN CLAUSE (VI) OF THIS SUBPARAGRAPH, SUCH SUSPENSION
OR REVOCATION SHALL CONTINUE FOR AS LONG AS THE REVOCATION OF THE RETAIL
DEALER REGISTRATION PURSUANT TO SECTION FOUR HUNDRED  EIGHTY-A  OF  THIS
CHAPTER REMAINS IN EFFECT.
  §  7.  Subparagraph  (B)  of paragraph 4 of subdivision (a) of section
1134 of the tax law, as amended by chapter 2 of the  laws  of  1995,  is
amended to read as follows:
  (B)  Where  a person files a certificate of registration for a certif-
icate of authority under this subdivision and in considering such appli-
cation the commissioner ascertains that (i) any tax imposed  under  this
chapter  or  any related statute, as defined in section eighteen hundred
of this chapter, has been finally determined to be due from such  person
and  has not been paid in full, (ii) a tax due under this article or any
law, ordinance or resolution enacted pursuant to the authority of  arti-
cle  twenty-nine  of  this chapter has been finally determined to be due
from an officer, director, partner or  employee  of  such  person,  and,
where  such  person  is  a  limited  liability company, also a member or
manager  of  such  person,  in  the  officer's,  director's,  partner's,
member's,  manager's  or  employee's  capacity  as  a person required to
collect tax on behalf of such person or another person and has not  been
paid,  (iii)  such  person has been convicted of a crime provided for in
this chapter within one year from the date on which such certificate  of
registration is filed, (iv) an officer, director, partner or employee of
such person, and, where such person is a limited liability company, also
a  member  or  manager of such person, which officer, director, partner,
member, manager or employee is a  person  required  to  collect  tax  on
behalf  of  such  person filing a certificate of registration has in the
officer's, director's,  partner's,  member's,  manager's  or  employee's
capacity as a person required to collect tax on behalf of such person or
of another person been convicted of a crime provided for in this chapter
within  one year from the date on which such certificate of registration
is filed, (v) a shareholder owning more than fifty percent of the number
of shares of stock of such person (where such person is  a  corporation)
entitling  the  holder  thereof to vote for the election of directors or
trustees, who owned more than fifty percent of the number of such shares
of another person (where such other person is a corporation) at the time
any tax imposed under this chapter or any related statute as defined  in
section  eighteen  hundred  of this chapter was finally determined to be
due and where such tax has not been paid in full, or at  the  time  such
other person was convicted of a crime provided for in this chapter with-
in  one  year from the date on which such certificate of registration is
filed, [or] (vi) a certificate of authority issued to  such  person  has
been revoked or suspended pursuant to subparagraph (A) of this paragraph
within  one year from the date on which such certificate of registration
is filed, OR (VII) A  RETAIL  DEALER  REGISTRATION  ISSUED  PURSUANT  TO
SECTION  FOUR HUNDRED EIGHTY-A OF THIS CHAPTER TO SUCH PERSON, OR TO ANY

S. 7509--A                         16                         A. 9509--A

PERSON AFFILIATED WITH SUCH PERSON AS SUCH TERM IS DEFINED  IN  SUBDIVI-
SION  TWENTY-ONE  OF  SECTION  FOUR HUNDRED SEVENTY OF THIS CHAPTER, HAS
BEEN REVOKED PURSUANT TO PARAGRAPH  (A)  OF  SUBDIVISION  FOUR  OF  SUCH
SECTION  FOUR HUNDRED EIGHTY-A, WHERE SUCH REVOCATION REMAINS IN EFFECT,
the commissioner may refuse to issue a certificate of authority.
  § 8. Section 1607 of the tax law is amended by adding a  new  subdivi-
sion i to read as follows:
  I.  A LOTTERY SALES AGENT'S LICENSE SHALL BE SUSPENDED OR REVOKED UPON
NOTIFICATION TO THE DIVISION BY THE COMMISSIONER OF  THE  REVOCATION  OF
SUCH  AGENT'S RETAIL DEALER REGISTRATION PURSUANT TO SUBDIVISION FOUR OF
SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER.  SUCH SUSPENSION OR REVO-
CATION SHALL CONTINUE FOR AS LONG AS THE REVOCATION OF SUCH RETAIL DEAL-
ER REGISTRATION REMAINS IN EFFECT.  NOTWITHSTANDING ANY OTHER LAW TO THE
CONTRARY, LOTTERY SALES AGENTS SHALL HAVE NO  RIGHT  TO  A  HEARING  AND
SHALL  HAVE  NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR TO ANY
OTHER LEGAL RECOURSE AGAINST THE DIVISION WITH  RESPECT  TO  ANY  ACTION
TAKEN  PURSUANT  TO THIS SUBDIVISION.  NOTHING IN THIS SUBDIVISION SHALL
AFFECT THE RIGHT TO REVIEW THE REVOCATION OF A RETAIL  DEALER  REGISTRA-
TION,  OR ANY APPEAL THEREFROM, AS PROVIDED IN PARAGRAPHS (B) AND (C) OF
SUBDIVISION FOUR OF SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER.
  § 9. This act shall take effect September 1, 2020 and shall  apply  to
the  possession  or  sale  of  unstamped or illegally stamped cigarettes
occurring on and after such date; provided, however, that the amendments
to section 17 of the alcoholic beverage control law made by section  one
of  this  act shall survive the expiration and reversion of such section
as provided in section 4 of chapter 118 of the laws of 2012, as amended;
provided, further, that the amendments to subparagraph (A) of  paragraph
4 of subdivision (a) of section 1134 of the tax law made by section five
of  this  act  shall  not affect the expiration of such subparagraph and
shall expire therewith, when upon such date the  provisions  of  section
six of this act shall take effect.

                                 PART J

  Section  1.  Paragraph  (e) of subdivision 1 of section 424 of the tax
law, as amended by chapter 190 of the laws of 1990, is amended  to  read
as follows:
  (e)  Sixty-seven cents per liter upon liquors containing not more than
twenty-four per centum of alcohol by volume  except  liquors  containing
not  more  than  two per centum of alcohol by volume, upon which the tax
shall be [one cent per liter] ZERO; and
  § 2. Paragraph (g) of subdivision 1 of section 424 of the tax law,  as
amended  by chapter 433 of the laws of 1978 and the opening paragraph as
amended by chapter 508 of the laws  of  1993,  is  amended  to  read  as
follows:
  (g)  For  purposes  of  this  chapter, it is presumed that liquors are
possessed for the purpose of sale in  this  state  if  the  quantity  of
liquors  possessed in this state, imported or caused to be imported into
this state or produced, distilled, manufactured,  compounded,  mixed  or
fermented  in  this state exceeds ninety liters. Such presumption may be
rebutted by the introduction of substantial evidence to the contrary. In
any case where the quantity of alcoholic beverages taxable  pursuant  to
this  article  is  a  fractional part of one liter (or one gallon in the
case of beers) or an amount greater than a whole multiple of liters  (or
gallons  in  the case of beers), the amount of tax levied and imposed on
such fractional part of one liter (or one gallon in the case of  beers),

S. 7509--A                         17                         A. 9509--A

or  fractional part of a liter (or gallon) in excess of a whole multiple
of liters or gallons shall be such fractional part of the  rate  imposed
by paragraphs (a) through (f).
  Notwithstanding  any other provision of this article, the [tax commis-
sion] COMMISSIONER may permit the purchase of [liquors and wines]  ALCO-
HOLIC  BEVERAGES  without  tax  by  a PERSON REGISTERED AS A DISTRIBUTOR
UNDER SECTION FOUR HUNDRED TWENTY-ONE  OF  THIS  ARTICLE  [holder  of  a
distiller's  license  or  a  winery  license, issued by the state liquor
authority] from another PERSON SO REGISTERED [holder  of  a  distiller's
license  or  a winery license, issued by such authority], in which event
the [liquors and wines] ALCOHOLIC BEVERAGE so purchased shall be subject
to the taxes imposed by this article in the hands of  the  purchaser  in
the same manner and to the same extent as if such purchaser had imported
or  caused  the  same  to  be  imported into this state or had produced,
distilled, manufactured, brewed, compounded, mixed or fermented the same
within this state.
  § 3. Subparagraph (C) of paragraph 1 of  subdivision  (i)  of  section
1136  of  the  tax law, as separately amended by chapters 229 and 485 of
the laws of 2015, is amended, and a new subparagraph  (D)  is  added  to
read as follows:
  (C)  Every  wholesaler,  as  defined by section three of the alcoholic
beverage control law, if it has made a sale of an alcoholic beverage, as
defined by section four hundred twenty of this chapter, without collect-
ing sales or use tax during the period covered by the return, except (i)
a sale to a person that has furnished an exempt organization certificate
to the wholesaler for that sale; or (ii) a sale  to  another  wholesaler
whose license under the alcoholic beverage control law does not allow it
to  make retail sales of the alcoholic beverage. For each vendor, opera-
tor, or recipient to  whom  the  wholesaler  has  made  a  sale  without
collecting  sales  or  compensating use tax, the return must include the
total value of those sales made during the period covered by the  return
(excepting  the sales described in clauses (i) and (ii) of this subpara-
graph) and the vendor's, operator's or recipient's state liquor authori-
ty license number, along with the information required by paragraph  two
of  this  subdivision.  [A  person  operating  pursuant to a farm winery
license as provided in section seventy-six-a of the  alcoholic  beverage
control  law,  or  a  person  operating  pursuant to a winery license as
provided in section seventy-six of the alcoholic  beverage  control  law
and  whose  winery  manufactures  less  than  one hundred fifty thousand
finished gallons of wine annually, or a person operating pursuant  to  a
farm  distillery  license  as  provided  in subdivision two-c of section
sixty-one of such law, or a person operating pursuant to a  farm  cidery
license  as  provided in section fifty-eight-c of the alcoholic beverage
control law, or a person operating pursuant to a farm brewery license as
provided in section fifty-one-a of the alcoholic beverage  control  law,
or  a  person  operating  pursuant  to a brewer's license as provided in
section fifty-one of the alcoholic beverage  control  law  who  produces
less  than  sixty thousand barrels of beer a year, or a person operating
pursuant to any combination of such licenses, shall not  be  subject  to
any of the requirements of this subdivision.]
  (D)  NOTWITHSTANDING  THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARA-
GRAPH, A PERSON OPERATING PURSUANT TO  ANY  OF  THE  FOLLOWING  LICENSES
SHALL NOT BE SUBJECT TO ANY OF THE REQUIREMENTS OF THIS SUBDIVISION: (I)
A FARM WINERY LICENSE, AS PROVIDED IN SECTION SEVENTY-SIX-A OF THE ALCO-
HOLIC  BEVERAGE  CONTROL  LAW;  (II)  A  WINERY  LICENSE, AS PROVIDED IN
SECTION SEVENTY-SIX OF THE ALCOHOLIC BEVERAGE  CONTROL  LAW,  WHERE  THE

S. 7509--A                         18                         A. 9509--A

NUMBER  OF  GALLONS  OF  WINE,  CIDER AND MEAD PRODUCED ANNUALLY BY SUCH
PERSON DOES NOT EXCEED THE ANNUAL  LIMITS  ON  THE  NUMBER  OF  FINISHED
GALLONS  OF  WINE,  CIDER  AND  MEAD  PERMITTED TO BE PRODUCED BY A FARM
WINERY UNDER SUBDIVISION EIGHT OF SECTION SEVENTY-SIX-A OF THE ALCOHOLIC
BEVERAGE  CONTROL  LAW;  (III) A FARM DISTILLERY LICENSE, AS PROVIDED IN
SUBDIVISION TWO-C OF SECTION SIXTY-ONE OF THE ALCOHOLIC BEVERAGE CONTROL
LAW; (IV) A DISTILLER'S LICENSE, AS PROVIDED IN SECTION SIXTY-ONE OF THE
ALCOHOLIC BEVERAGE CONTROL LAW, WHERE THE NUMBER OF  GALLONS  OF  LIQUOR
PRODUCED  ANNUALLY  BY  SUCH PERSON DOES NOT EXCEED THE ANNUAL LIMITS ON
THE NUMBER OF GALLONS OF LIQUOR PERMITTED  TO  BE  PRODUCED  BY  A  FARM
DISTILLERY UNDER PARAGRAPH (F) OF SUBDIVISION TWO-C OF SECTION SIXTY-ONE
OF  THE  ALCOHOLIC  BEVERAGE  CONTROL LAW; (V) A FARM CIDERY LICENSE, AS
PROVIDED IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVERAGE CONTROL LAW;
(VI) A CIDER PRODUCERS' LICENSE, AS PROVIDED IN SECTION  FIFTY-EIGHT  OF
THE ALCOHOLIC BEVERAGE CONTROL LAW, WHERE THE NUMBER OF GALLONS OF CIDER
PRODUCED  ANNUALLY  BY  SUCH PERSON DOES NOT EXCEED THE ANNUAL LIMITS ON
THE NUMBER OF GALLONS OF CIDER PERMITTED TO BE PRODUCED BY A FARM CIDERY
UNDER SUBDIVISION TEN OF SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVERAGE
CONTROL LAW; (VII) A  FARM  BREWERY  LICENSE,  AS  PROVIDED  IN  SECTION
FIFTY-ONE-A  OF  THE  ALCOHOLIC  BEVERAGE CONTROL LAW; (VIII) A BREWER'S
LICENSE, AS PROVIDED IN SECTION  FIFTY-ONE  OF  THE  ALCOHOLIC  BEVERAGE
CONTROL  LAW,  WHERE  THE  NUMBER OF FINISHED BARRELS OF BEER, CIDER AND
BRAGGOT PRODUCED ANNUALLY BY SUCH PERSON  DOES  NOT  EXCEED  THE  ANNUAL
NUMBER  OF  FINISHED  BARRELS OF BEER, CIDER AND BRAGGOT PERMITTED TO BE
PRODUCED BY A FARM BREWERY UNDER SUBDIVISION TEN OF SECTION  FIFTY-ONE-A
OF  THE  ALCOHOLIC BEVERAGE CONTROL LAW; (IX) A FARM MEADERY LICENSE, AS
PROVIDED IN SECTION THIRTY-ONE OF THE ALCOHOLIC BEVERAGE CONTROL LAW; OR
(X) A MEAD PRODUCERS' LICENSE, AS PROVIDED  IN  SECTION  THIRTY  OF  THE
ALCOHOLIC  BEVERAGE CONTROL LAW, WHERE THE NUMBER OF GALLONS OF MEAD AND
BRAGGOT PRODUCED ANNUALLY BY SUCH PERSON  DOES  NOT  EXCEED  THE  ANNUAL
NUMBER  OF FINISHED BARRELS OF MEAD AND BRAGGOT PERMITTED TO BE PRODUCED
BY A FARM MEADERY UNDER SUBDIVISION TEN OF  SECTION  THIRTY-ONE  OF  THE
ALCOHOLIC  BEVERAGE  CONTROL  LAW.  NOTHING  IN  THIS SUBPARAGRAPH SHALL
EXEMPT A PERSON OPERATING PURSUANT TO MULTIPLE LICENSES UNDER THE  ALCO-
HOLIC  BEVERAGE CONTROL LAW FROM THE REQUIREMENTS OF SUBPARAGRAPH (C) OF
THIS PARAGRAPH IF SUCH PERSON PRODUCES AN AMOUNT OF ANY ALCOHOLIC BEVER-
AGE IN EXCESS OF THE AMOUNTS PERMITTED TO  BE  PRODUCED  ANNUALLY  BY  A
PERSON  WHO HOLDS ONLY A FARM WINERY, FARM CIDERY, FARM DISTILLERY, FARM
BREWERY OR FARM MEADERY  LICENSE  FOR  SUCH  BEVERAGE,  NOR  SHALL  THIS
SECTION EXEMPT ANY PERSON HOLDING A WHOLESALERS' LICENSE UNDER THE ALCO-
HOLIC  BEVERAGE CONTROL LAW FROM THE REQUIREMENTS OF SUBPARAGRAPH (C) OF
THIS PARAGRAPH.
  § 4. This act shall take effect June 1, 2020.

                                 PART K

  Section 1. Subdivision (c) of section 1800 of the tax law, as  amended
by  section  13  of  subpart  I of part V-1 of chapter 57 of the laws of
2009, is amended to read as follows:
  (c) As used in this article, the term "felony" and the term "misdemea-
nor" shall have the same meaning as they have in the penal law, and  the
disposition of such offenses and the sentences imposed therefor shall be
as  provided  in  such law except; (1) notwithstanding the provisions of
paragraph a of subdivision one of section 80.00  and  paragraph  (a)  of
subdivision  one  of section 80.10 of the penal law relating to the fine
for a felony, the court may impose a fine not to exceed the  greater  of

S. 7509--A                         19                         A. 9509--A

double  the  amount  of  [the underpaid tax liability resulting from the
commission of the crime]  TAX  LIABILITY  EVADED  OR  FRAUDULENT  REFUND
RECEIVED  OR  APPLIED FOR AS A RESULT OF THE COMMISSION OF THE CRIME, or
fifty  thousand  dollars,  or, in the case of a corporation the fine may
not exceed the greater of  double  the  amount  of  [the  underpaid  tax
liability  resulting  from  the  commission  of the crime] TAX LIABILITY
EVADED OR FRAUDULENT REFUND RECEIVED OR APPLIED FOR AS A RESULT  OF  THE
COMMISSION  OF  THE CRIME, or two hundred fifty thousand dollars and (2)
notwithstanding the provisions of subdivision one of section  80.05  and
paragraph  (b)  of  subdivision  one  of  section 80.10 of the penal law
relating to the fine for a class A misdemeanor, the court may  impose  a
fine  not  to  exceed ten thousand dollars, except that in the case of a
corporation the fine may not exceed twenty thousand dollars.
  § 2. Section 1803 of the tax law, as added by section 17 of subpart  I
of  part  V-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  § 1803. Criminal tax fraud in the  fourth  degree.  A  person  commits
criminal  tax  fraud  in  the fourth degree when he or she commits a tax
fraud act or acts and[, with the intent to evade any tax due under  this
chapter,  or  to  defraud] THEREBY DEPRIVES OR DEFRAUDS the state or any
POLITICAL subdivision [thereof, the person pays the state and/or a poli-
tical subdivision of the state (whether  by  means  of  underpayment  or
receipt  of  refund  or  both), in a period of not more than one year in
excess] of THE STATE IN AN AMOUNT EXCEEDING three thousand dollars [less
than the tax liability that is due]. Criminal tax fraud  in  the  fourth
degree is a class E felony.
  §  3. Section 1804 of the tax law, as added by section 18 of subpart I
of part V-1 of chapter 57 of the laws of 2009, is  amended  to  read  as
follows:
  § 1804. Criminal tax fraud in the third degree. A person commits crim-
inal  tax  fraud  in the third degree when he or she commits a tax fraud
act or acts and[, with the intent to evade any tax due under this  chap-
ter,  or to defraud] THEREBY DEPRIVES OR DEFRAUDS the state or any poli-
tical subdivision of the state[, the person  pays  the  state  and/or  a
political  subdivision of the state (whether by means of underpayment or
receipt of refund or both), in a period of not more  than  one  year  in
excess  of]  IN  AN AMOUNT EXCEEDING ten thousand dollars [less than the
tax liability that is due].  Criminal tax fraud in the third degree is a
class D felony.
  § 4. Section 1805 of the tax law, as added by section 19 of subpart  I
of  part  V-1  of  chapter 57 of the laws of 2009, is amended to read as
follows:
  § 1805. Criminal tax fraud in the  second  degree.  A  person  commits
criminal  tax  fraud  in  the second degree when he or she commits a tax
fraud act or acts and[, with the intent to evade any tax due under  this
chapter,  or  to  defraud] THEREBY DEPRIVES OR DEFRAUDS the state or any
subdivision of the state[, the person pays the state and/or a  political
subdivision of the state (whether by means of underpayment or receipt of
refund  or both), in a period of not more than one year in excess of] IN
AN AMOUNT EXCEEDING fifty thousand dollars [less than the tax  liability
that is due]. Criminal tax fraud in the second degree is a class C felo-
ny.
  §  5. Section 1806 of the tax law, as added by section 20 of subpart I
of part V-1 of chapter 57 of the laws of 2009, is  amended  to  read  as
follows:

S. 7509--A                         20                         A. 9509--A

  § 1806. Criminal tax fraud in the first degree. A person commits crim-
inal  tax  fraud  in the first degree when he or she commits a tax fraud
act or acts and[, with the intent to evade any tax due under this  chap-
ter, or to defraud] THEREBY DEPRIVES OR DEFRAUDS the state or any subdi-
vision  of  the  state[,  the  person  pays the state and/or a political
subdivision of the state (whether by means of underpayment or receipt of
refund or both), in a period of not more than one year in excess of]  IN
AN  AMOUNT  EXCEEDING  one  million dollars [less than the tax liability
that is due]. Criminal tax fraud in the first degree is a class B  felo-
ny.
  § 6. Section 1807 of the tax law, as amended by section 5 of subpart A
of  part  S  of  chapter  57  of the laws of 2010, is amended to read as
follows:
  § 1807. Aggregation. For purposes of this article, [the  payments  due
and not paid under a single article of this chapter pursuant to a common
scheme or plan or due and not paid, within one year, may be charged in a
single count, and the amount of underpaid tax liability incurred, within
one  year,]  (A) THE AMOUNT DEPRIVED OR DEFRAUDED WITHIN A THREE HUNDRED
SIXTY-FIVE CONSECUTIVE DAY PERIOD may be aggregated in a  single  count,
OR  (B) WHEN A PERSON IS SHOWN TO BE ACTING PURSUANT TO A COMMON PLAN OR
SCHEME CONSTITUTING A SYSTEMATIC ONGOING COURSE OF  CONDUCT,  THE  TOTAL
AMOUNT DEPRIVED OR DEFRAUDED UNDER SUCH SCHEME OR PLAN MAY BE CHARGED IN
A SINGLE COUNT.
  §  7.  The  tax law is amended by adding a new section 1810 to read as
follows:
  § 1810. CRIMINAL TAX  PREPARATION  IN  THE  SECOND  DEGREE.  A  PERSON
COMMITS  CRIMINAL  TAX  PREPARATION  IN THE SECOND DEGREE WHEN HE OR SHE
FILES OR CAUSES TO BE FILED TEN OR MORE TAX RETURNS WITH THE DEPARTMENT,
WITHIN A PERIOD OF NOT MORE THAN THREE  HUNDRED  SIXTY-FIVE  CONSECUTIVE
DAYS,  KNOWING  THAT EACH CONTAINS MATERIALLY FALSE INFORMATION OR OMITS
MATERIAL INFORMATION WITH THE INTENT TO EVADE OR REDUCE ANY TAX  LIABIL-
ITY  OWED  OR TO EFFECT OR INFLATE A REFUND. CRIMINAL TAX PREPARATION IN
THE SECOND DEGREE IS A CLASS D FELONY.
  § 8. The tax law is amended by adding a new section 1810-a to read  as
follows:
  §  1810-A.  CRIMINAL  TAX  PREPARATION  IN  THE FIRST DEGREE. A PERSON
COMMITS CRIMINAL TAX PREPARATION IN THE FIRST  DEGREE  WHEN  HE  OR  SHE
FILES  OR  CAUSES TO BE FILED FIFTY OR MORE TAX RETURNS WITH THE DEPART-
MENT, WITHIN A PERIOD OF NOT MORE THAN THREE HUNDRED SIXTY-FIVE  CONSEC-
UTIVE  DAYS,  KNOWING THAT EACH CONTAINS MATERIALLY FALSE INFORMATION OR
OMITS MATERIAL INFORMATION WITH THE INTENT TO EVADE OR  REDUCE  ANY  TAX
LIABILITY  OWED  OR TO EFFECT OR INFLATE A REFUND. CRIMINAL TAX PREPARA-
TION IN THE FIRST DEGREE IS A CLASS C FELONY.
  § 9. This act  shall  take  effect  immediately  and  shall  apply  to
offenses committed on or after such effective date.

                                 PART L

  Section  1.  Section 352 of the economic development law is amended by
adding a new subdivision 8-a to read as follows:
  8-A. "GREEN PROJECT" MEANS A PROJECT DEEMED  BY  THE  COMMISSIONER  TO
MAKE  PRODUCTS  OR  DEVELOP TECHNOLOGIES THAT ARE SUBSTANTIALLY AIMED AT
REDUCING GREENHOUSE GAS EMISSIONS OR SUPPORTING THE USE OF CLEAN  ENERGY
IN  ACCORDANCE  WITH  GOALS  DESCRIBED IN CHAPTER ONE HUNDRED SIX OF THE
LAWS OF TWO THOUSAND NINETEEN, ALONG WITH  THE  STATE  ENERGY  PLAN  AND
FUTURE  UPDATES  AS DESCRIBED IN SECTION 6-104 OF THE ENERGY LAW. "GREEN

S. 7509--A                         21                         A. 9509--A

PROJECT" SHALL INCLUDE, BUT NOT BE LIMITED TO, THE MANUFACTURE OR DEVEL-
OPMENT OF PRODUCTS OR TECHNOLOGIES OR SUPPLY CHAIN COMPONENTS  PRIMARILY
FOR  RENEWABLE  ENERGY  SYSTEMS AS DEFINED IN SECTION SIXTY-SIX-P OF THE
PUBLIC  SERVICE LAW, VEHICLES THAT USE NON-HYDROCARBON FUELS AND PRODUCE
ZERO OR NEAR ZERO  EMISSIONS,  HEAT  PUMPS,  ENERGY  EFFICIENCY,  CARBON
CAPTURE  AND  STORAGE,  CLEAN  ENERGY  STORAGE  AND  OTHER PRODUCTS THAT
SIGNIFICANTLY REDUCE GREENHOUSE GAS EMISSIONS BY MINIMIZING THE UTILIZA-
TION OF DEPLETABLE RESOURCES  OR  BY  IMPROVING  INDUSTRIAL  EFFICIENCY.
"GREEN  PROJECT"  SHALL  NOT INCLUDE A PROJECT PRIMARILY COMPOSED OF (I)
NECESSARILY LOCAL ACTIVITIES SUCH AS RETAIL, BUILDING  CONSTRUCTION,  OR
THE  INSTALLATION,  DEPLOYMENT  OR ADOPTION OF A CLEAN ENERGY PRODUCT OR
TECHNOLOGY AT AN END USER'S SITE, OR (II) THE PRODUCTION OF PRODUCTS  OR
DEVELOPMENT  OF TECHNOLOGIES THAT WOULD PRODUCE ONLY MARGINAL AND INCRE-
MENTAL ENERGY SAVINGS OR ENVIRONMENTAL BENEFITS ANCILLARY  TO  THE  CORE
FUNCTION OF THE PRODUCT OR TECHNOLOGY.
  §  2. Subdivision 1 of section 353 of the economic development law, as
amended by section 2 of part K of chapter 59 of the  laws  of  2017,  is
amended to read as follows:
  1. To be a participant in the excelsior jobs program, a business enti-
ty shall operate in New York state predominantly:
  (a)  as  a financial services data center or a financial services back
office operation;
  (b) in manufacturing;
  (c) in software development and new media;
  (d) in scientific research and development;
  (e) in agriculture;
  (f) in the creation or expansion of  back  office  operations  in  the
state;
  (g) in a distribution center;
  (h)  in  an  industry  with  significant  potential for private-sector
economic growth and development in this  state  as  established  by  the
commissioner  in  regulations  promulgated  pursuant to this article. In
promulgating such regulations the commissioner  shall  include  job  and
investment criteria;
  (i) as an entertainment company;
  (j) in music production; [or]
  (k) as a life sciences company; OR
  (L)  AS  A  COMPANY OPERATING IN ONE OF THE INDUSTRIES LISTED IN PARA-
GRAPHS (B) THROUGH (E) OF THIS  SUBDIVISION  AND  ENGAGING  IN  A  GREEN
PROJECT AS DEFINED IN SECTION THREE HUNDRED FIFTY-TWO OF THIS ARTICLE.
  §  3. Subdivision 5 of section 354 of the economic development law, as
amended by section 4 of part K of chapter 59 of the  laws  of  2017,  is
amended to read as follows:
  5.  A participant may claim tax benefits commencing in the first taxa-
ble year that the business enterprise  receives  a  certificate  of  tax
credit  or  the first taxable year listed on its preliminary schedule of
benefits, whichever is later. A participant may claim such benefits  for
the  next  nine consecutive taxable years, provided that the participant
demonstrates to the department that it continues to satisfy  the  eligi-
bility  criteria  specified in section three hundred fifty-three of this
article and subdivision two of this section in  each  of  those  taxable
years, and provided that no tax credits may be allowed for taxable years
beginning  on  or after January first, two thousand [thirty] FIFTY.  If,
in any given year, a  participant  who  has  satisfied  the  eligibility
criteria  specified in section three hundred fifty-three of this article
realizes job creation less than the estimated amount, the  credit  shall

S. 7509--A                         22                         A. 9509--A

be  reduced  by  the  proportion of actual job creation to the estimated
amount, provided the proportion is at least seventy-five percent of  the
jobs estimated.
  §  4.  Subdivisions 1, 2 and 3 of section 355 of the economic develop-
ment law, subdivisions 1 and 2 as amended by section  4  of  part  G  of
chapter  61 of the laws of 2011, and subdivision 3 as amended by section
1 of part YY of chapter 59 of the laws of 2017, are amended to  read  as
follows:
  1. Excelsior jobs tax credit component. A participant in the excelsior
jobs program shall be eligible to claim a credit for each net new job it
creates  in  New  York  state.  [The]  IN  A PROJECT THAT IS NOT A GREEN
PROJECT, THE amount of such credit per job shall be equal to the product
of the gross wages paid and UP TO 6.85 percent. IN A GREEN PROJECT,  THE
AMOUNT OF SUCH CREDIT PER JOB SHALL BE EQUAL TO THE PRODUCT OF THE GROSS
WAGES PAID AND UP TO 7.5 PERCENT.
  2.  Excelsior  investment  tax  credit component. A participant in the
excelsior jobs program shall be eligible to claim a credit on  qualified
investments.  [The] IN A PROJECT THAT IS NOT A GREEN PROJECT, THE credit
shall be equal to two percent of the cost or  other  basis  for  federal
income  tax  purposes  of the qualified investment.  IN A GREEN PROJECT,
THE CREDIT SHALL BE EQUAL TO FIVE PERCENT OF THE COST OR OTHER BASIS FOR
FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT.  A  participant
may not claim both the excelsior investment tax credit component and the
investment  tax  credit set forth in subdivision [twelve] ONE of section
two hundred [ten] TEN-B, subsection (a) of section six hundred six,  THE
FORMER subsection (i) of section fourteen hundred fifty-six, or subdivi-
sion  (q)  of section fifteen hundred eleven of the tax law for the same
property in any taxable year, except that a participant may  claim  both
the  excelsior  investment  tax  credit component and the investment tax
credit for research and development property. In  addition,  a  taxpayer
who  or  which is qualified to claim the excelsior investment tax credit
component and is also qualified to claim the brownfield tangible proper-
ty credit component under section twenty-one of the tax  law  may  claim
either  the  excelsior  investment tax credit component or such tangible
property credit component, but not both  with  regard  to  a  particular
piece  of  property. A credit may not be claimed until a business enter-
prise has received a certificate of tax credit, provided that  qualified
investments  made  on or after the issuance of the certificate of eligi-
bility but before the issuance of the certificate of tax credit  to  the
business  enterprise, may be claimed in the first taxable year for which
the business  enterprise  is  allowed  to  claim  the  credit.  Expenses
incurred  prior to the date the certificate of eligibility is issued are
not eligible to be included in the calculation of the credit.
  3. Excelsior research and development tax credit component. A  partic-
ipant  in the excelsior jobs program shall be eligible to claim a credit
equal to fifty percent of  the  portion  of  the  participant's  federal
research  and  development  tax credit that relates to the participant's
research and development expenditures in New York state during the taxa-
ble year; provided however,  IF  NOT  A  GREEN  PROJECT,  the  excelsior
research  and development tax credit shall not exceed six percent of the
qualified research and development expenditures attributable  to  activ-
ities conducted in New York state, OR, IF A GREEN PROJECT, THE EXCELSIOR
RESEARCH  AND  DEVELOPMENT  TAX CREDIT SHALL NOT EXCEED EIGHT PERCENT OF
THE RESEARCH AND DEVELOPMENT  EXPENDITURES  ATTRIBUTABLE  TO  ACTIVITIES
CONDUCTED  IN  NEW  YORK  STATE. If the federal research and development
credit has expired,  then  the  research  and  development  expenditures

S. 7509--A                         23                         A. 9509--A

relating  to the federal research and development credit shall be calcu-
lated as if the federal research and development  credit  structure  and
definition  in  effect  in  two  thousand  nine  were  still  in effect.
Notwithstanding  any  other  provision  of this chapter to the contrary,
research and development expenditures in this state, including salary or
wage expenses for jobs related to research and development activities in
this state, may be used as the basis  for  the  excelsior  research  and
development  tax  credit component and the qualified emerging technology
company facilities, operations and training credit under the tax law.
  § 5. Section 359 of  the  economic  development  law,  as  amended  by
section  5  of  part  K of chapter 59 of the laws of 2017, is amended to
read as follows:
  § 359. Cap on tax credit. [The total amount of tax credits  listed  on
certificates  of  tax  credit issued by the commissioner for any taxable
year may not exceed the limitations set forth in this section.] One-half
of any amount of tax credits not awarded for a particular  taxable  year
[in  years  two thousand eleven through two thousand twenty-four] may be
used by the commissioner to award tax credits in another taxable year.

Credit components in the aggregate           With respect to taxable
shall not exceed:                            years beginning in:

          $ 50 million                               2011
          $ 100 million                              2012
          $ 150 million                              2013
          $ 200 million                              2014
          $ 250 million                              2015
          $ 183 million                              2016
          $ 183 million                              2017
          $ 183 million                              2018
          $ 183 million                              2019
          $ 183 million                              2020
          $ 183 million                              2021
          $ 133 million                              2022
          $ 83 million                               2023
          $ 36 million                               2024
          $ 200 MILLION                              2025
          $ 200 MILLION                              2026
          $ 200 MILLION                              2027
          $ 200 MILLION                              2028
          $ 200 MILLION                              2029
          $ 200 MILLION                              2030
          $ 200 MILLION                              2031
          $ 200 MILLION                              2032
          $ 200 MILLION                              2033
          $ 200 MILLION                              2034
          $ 200 MILLION                              2035
          $ 200 MILLION                              2036
          $ 200 MILLION                              2037
          $ 200 MILLION                              2038
          $ 200 MILLION                              2039

  Twenty-five percent of tax credits shall be  allocated  to  businesses
accepted  into  the  program  under  subdivision  four  of section three
hundred fifty-three of this article  and  seventy-five  percent  of  tax

S. 7509--A                         24                         A. 9509--A

credits shall be allocated to businesses accepted into the program under
subdivision three of section three hundred fifty-three of this article.
  Provided,  however,  if by September thirtieth of a calendar year, the
department has not allocated the full amount  of  credits  available  in
that  year  to  either:  (i)  businesses accepted into the program under
subdivision four of section three hundred fifty-three of this article or
(ii) businesses accepted into the program  under  subdivision  three  of
section  three hundred fifty-three of this article, the commissioner may
allocate any remaining tax credits  to  businesses  referenced  in  this
paragraph  as needed; provided, however, that under no circumstances may
the aggregate statutory cap for  all  program  years  be  exceeded.  One
hundred  percent  of  the  unawarded amounts remaining at the end of two
thousand [twenty-four] THIRTY-NINE may be allocated in subsequent years,
notwithstanding the fifty percent limitation on any amounts of tax cred-
its not awarded in taxable years two thousand eleven through  two  thou-
sand  [twenty-four] THIRTY-NINE.   Provided, however, no tax credits may
be allowed for taxable years beginning on or after  January  first,  two
thousand [thirty] FIFTY.
  §  6.  Subdivision  (b)  of  section  31 of the tax law, as amended by
section 6 of part K of chapter 59 of the laws of  2017,  is  amended  to
read as follows:
  (b) To be eligible for the excelsior jobs program credit, the taxpayer
shall  have  been issued a "certificate of tax credit" by the department
of economic development pursuant to subdivision four  of  section  three
hundred  fifty-four  of  the economic development law, which certificate
shall set forth the amount of each credit component that may be  claimed
for  the  taxable year. A taxpayer may claim such credit for ten consec-
utive taxable years commencing  in  the  first  taxable  year  that  the
taxpayer  receives a certificate of tax credit or the first taxable year
listed on its preliminary schedule  of  benefits,  whichever  is  later,
provided  that no tax credits may be allowed for taxable years beginning
on or after January first, two thousand  [thirty]  FIFTY.  The  taxpayer
shall  be  allowed to claim only the amount listed on the certificate of
tax credit for that taxable year. Such certificate must be  attached  to
the  taxpayer's  return.  No  cost  or  expense  paid or incurred by the
taxpayer shall be the basis for more than one component of  this  credit
or  any  other  tax  credit, except as provided in section three hundred
fifty-five of the economic development law.
  § 7. This act shall take effect immediately.

                                 PART M

  Section 1. Paragraph 2 of subdivision (a) of section  24  of  the  tax
law,  as  amended  by  section  4 of part Q of chapter 57 of the laws of
2010, is amended to read as follows:
  (2) The amount of the credit shall be the product (or pro  rata  share
of  the  product,  in the case of a member of a partnership) of [thirty]
TWENTY-FIVE percent and the qualified production costs paid or  incurred
in  the production of a qualified film, provided that: (i) the qualified
production costs (excluding post  production  costs)  paid  or  incurred
which  are  attributable to the use of tangible property or the perform-
ance of  services  at  a  qualified  film  production  facility  in  the
production  of  such qualified film equal or exceed seventy-five percent
of the production  costs  (excluding  post  production  costs)  paid  or
incurred  which  are attributable to the use of tangible property or the
performance of services at any film production facility within and with-

S. 7509--A                         25                         A. 9509--A

out the state in the production of such qualified film, and (ii)  except
with  respect  to  a  qualified  independent  film production company or
pilot, at least ten percent of the total principal photography  shooting
days  spent  in the production of such qualified film must be spent at a
qualified film production facility. However, if the qualified production
costs (excluding post production costs) which are  attributable  to  the
use  of  tangible property or the performance of services at a qualified
film production facility in the production of  such  qualified  film  is
less  than  three  million  dollars,  then  the portion of the qualified
production costs attributable to the use of  tangible  property  or  the
performance of services in the production of such qualified film outside
of  a  qualified  film  production facility shall be allowed only if the
shooting days spent in New York outside of a film production facility in
the production of such  qualified  film  equal  or  exceed  seventy-five
percent  of  the  total  shooting days spent within and without New York
outside of a film production facility in the production of  such  quali-
fied film. The credit shall be allowed for the taxable year in which the
production  of such qualified film is completed. However, in the case of
a qualified film that receives funds from additional pool 2,  no  credit
shall be claimed before the later of (1) the taxable year the production
of  the  qualified film is complete, or (2) the taxable year immediately
following the allocation year for which  the  film  has  been  allocated
credit by the governor's office for motion picture and television devel-
opment.  If the amount of the credit is at least one million dollars but
less than five million dollars, the credit shall be claimed over  a  two
year  period beginning in the first taxable year in which the credit may
be claimed and in the next succeeding taxable year, with one-half of the
amount of credit allowed being claimed in each year. If  the  amount  of
the credit is at least five million dollars, the credit shall be claimed
over  a  three  year period beginning in the first taxable year in which
the credit may be claimed and in the next two succeeding taxable  years,
with one-third of the amount of the credit allowed being claimed in each
year.
  §  2.  Paragraph 2 of subdivision (a) of section 24 of the tax law, as
amended by section 4 of part Q of chapter 57 of the  laws  of  2010,  is
amended to read as follows:
  (2)  The  amount of the credit shall be the product (or pro rata share
of the product, in the case of a member  of  a  partnership)  of  thirty
percent  and  the  qualified  production  costs  paid or incurred in the
production of  a  qualified  film,  provided  that:  (i)  the  qualified
production  costs  (excluding  post  production  costs) paid or incurred
which are attributable to the use of tangible property or  the  perform-
ance  of  services  at  a  qualified  film  production  facility  in the
production of such qualified film equal or exceed  seventy-five  percent
of  the  production  costs  (excluding  post  production  costs) paid or
incurred which are attributable to the use of tangible property  or  the
performance of services at any film production facility within and with-
out  the state in the production of such qualified film, and (ii) except
with respect to a  qualified  independent  film  production  company  or
pilot,  at least ten percent of the total principal photography shooting
days spent in the production of such qualified film must be spent  at  a
qualified film production facility. However, if the qualified production
costs  (excluding  post  production costs) which are attributable to the
use of tangible property or the performance of services at  a  qualified
film  production  facility  in  the production of such qualified film is
less than three million dollars,  then  the  portion  of  the  qualified

S. 7509--A                         26                         A. 9509--A

production  costs  attributable  to  the use of tangible property or the
performance of services in the production of such qualified film outside
of a qualified film production facility shall be  allowed  only  if  the
shooting days spent in New York outside of a film production facility in
the  production  of  such  qualified  film  equal or exceed seventy-five
percent of the total shooting days spent within  and  without  New  York
outside  of  a film production facility in the production of such quali-
fied film. The credit shall be allowed for the taxable year in which the
production of such qualified film is completed. However, in the case  of
a  qualified  film that receives funds from additional pool 2, no credit
shall be claimed before the later of (1) the taxable year the production
of the qualified film is complete, or (2) the FIRST taxable year  BEGIN-
NING  immediately  [following]  AFTER  the allocation year for which the
film has been allocated credit  by  the  governor's  office  for  motion
picture  and  television  development. If the amount of the credit is at
least one million dollars but less than five million dollars, the credit
shall be claimed over a two year period beginning in the  first  taxable
year in which the credit may be claimed and in the next succeeding taxa-
ble year, with one-half of the amount of credit allowed being claimed in
each year. If the amount of the credit is at least five million dollars,
the  credit  shall  be claimed over a three year period beginning in the
first taxable year in which the credit may be claimed and  in  the  next
two succeeding taxable years, with one-third of the amount of the credit
allowed being claimed in each year.
  §  3.  Paragraph 3 of subdivision (b) of section 24 of the tax law, as
amended by section 1 of part B of chapter 59 of the  laws  of  2013,  is
amended to read as follows:
  (3)  "Qualified  film"  means  a feature-length film, television film,
relocated television production, television pilot [and/or  each  episode
of  a]  OR television series, regardless of the medium by means of which
the film, pilot or [episode] SERIES is  created  or  conveyed.  FOR  THE
PURPOSES OF THE CREDIT PROVIDED BY THIS SECTION ONLY, A "QUALIFIED FILM"
WITH  THE  EXCEPTION  OF A TELEVISION PILOT, WHOSE MAJORITY OF PRINCIPAL
PHOTOGRAPHY SHOOTING DAYS IN THE PRODUCTION OF THE  QUALIFIED  FILM  ARE
SHOT  IN  WESTCHESTER, ROCKLAND, NASSAU, OR SUFFOLK COUNTY OR ANY OF THE
FIVE NEW YORK CITY BOROUGHS SHALL HAVE A MINIMUM BUDGET OF  ONE  MILLION
DOLLARS.  A  "QUALIFIED FILM", WITH THE EXCEPTION OF A TELEVISION PILOT,
WHOSE MAJORITY OF PRINCIPAL PHOTOGRAPHY SHOOTING DAYS IN THE  PRODUCTION
OF  THE  QUALIFIED  FILM  ARE SHOT IN ANY OTHER COUNTY OF THE STATE THAN
THOSE LISTED IN THE PRECEDING SENTENCE SHALL HAVE A  MINIMUM  BUDGET  OF
TWO  HUNDRED FIFTY THOUSAND DOLLARS. "Qualified film" shall not include:
(i) a documentary film, news or current affairs  program,  interview  or
talk  program,  "how-to"  (i.e., instructional) film or program, film or
program consisting primarily of stock footage, sporting event or  sport-
ing  program, game show, award ceremony, film or program intended prima-
rily for industrial, corporate or institutional  end-users,  fundraising
film  or  program,  daytime  drama (i.e., daytime "soap opera"), commer-
cials, music videos or "reality" program, or (ii) a production for which
records are required under section 2257 of title 18, United States code,
to be maintained with  respect  to  any  performer  in  such  production
(reporting  of  books,  films,  etc.  with  respect to sexually explicit
conduct).
  § 4. Paragraph 3 of subdivision (b) of section 24 of the tax  law,  as
amended  by  section  1  of part B of chapter 59 of the laws of 2013, is
amended to read as follows:

S. 7509--A                         27                         A. 9509--A

  (3) "Qualified film" means a  feature-length  film,  television  film,
relocated television production, television pilot and/or each episode of
a  television  series,  regardless  of  the medium by means of which the
film, pilot or episode is created or conveyed.  "Qualified  film"  shall
not  include:  (i)  a documentary film, news or current affairs program,
interview or  talk  program,  "how-to"  (i.e.,  instructional)  film  or
program, film or program consisting primarily of stock footage, sporting
event  or  sporting  program, game show, award ceremony, film or program
intended primarily for industrial, corporate or institutional end-users,
fundraising film or program, daytime drama (i.e., daytime "soap opera"),
commercials, music videos or "reality" program[, or]; (ii) a  production
for  which  records  are required under section 2257 of title 18, United
States code, to be maintained with respect  to  any  performer  in  such
production  (reporting  of  books,  films, etc. with respect to sexually
explicit  conduct);  OR  (III)  OTHER  THAN   A   RELOCATED   TELEVISION
PRODUCTION, A TELEVISION SERIES COMMONLY KNOWN AS VARIETY ENTERTAINMENT,
VARIETY  SKETCH  AND  VARIETY  TALK,  I.E., A PROGRAM WITH COMPONENTS OF
IMPROVISATIONAL OR SCRIPTED CONTENT (MONOLOGUES, SKETCHES,  INTERVIEWS),
EITHER  EXCLUSIVELY  OR IN COMBINATION WITH OTHER ENTERTAINMENT ELEMENTS
SUCH AS MUSICAL PERFORMANCES, DANCING, COOKING, CRAFTS, PRANKS,  STUNTS,
AND GAMES AND WHICH MAY BE FURTHER DEFINED IN REGULATIONS OF THE COMMIS-
SIONER  OF ECONOMIC DEVELOPMENT. HOWEVER, A QUALIFIED FILM SHALL INCLUDE
A TELEVISION SERIES AS DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH
ONLY IF AN APPLICATION FOR SUCH SERIES  HAS  BEEN  DEEMED  CONDITIONALLY
ELIGIBLE FOR THE TAX CREDIT UNDER THIS SECTION PRIOR TO APRIL FIRST, TWO
THOUSAND  TWENTY,  SUCH SERIES REMAINS IN CONTINUOUS PRODUCTION FOR EACH
SEASON, AND AN ANNUAL APPLICATION FOR EACH  SEASON  OF  SUCH  SERIES  IS
CONTINUALLY  SUBMITTED  FOR  SUCH SERIES AFTER APRIL FIRST, TWO THOUSAND
TWENTY.
  § 5. Paragraph 2 of subdivision (a) of section 31 of the tax  law,  as
amended  by  chapter  268  of  the  laws  of 2012, is amended to read as
follows:
  (2) The amount of the credit shall be the product (or pro  rata  share
of  the  product,  in the case of a member of a partnership) of [thirty]
TWENTY-FIVE percent and the qualified post production costs paid in  the
production  of  a qualified film at a qualified post production facility
located within the  metropolitan  commuter  transportation  district  as
defined  in  section  twelve hundred sixty-two of the public authorities
law or [thirty-five] THIRTY percent and the  qualified  post  production
costs  paid  in  the  production of a qualified film at a qualified post
production facility located elsewhere in the state.
  § 5-a. Paragraph 5 of subdivision (a) of section 24 of the tax law, as
amended by section 1 of part SSS of chapter 59 of the laws of  2019,  is
amended to read as follows:
  (5)  For the period two thousand fifteen through two thousand [twenty-
four] TWENTY-FIVE, in addition to the amount of  credit  established  in
paragraph  two of this subdivision, a taxpayer shall be allowed a credit
equal to the product (or pro rata share of the product, in the case of a
member of a partnership) of ten percent and the amount of wages or sala-
ries paid to individuals directly employed (excluding those employed  as
writers, directors, music directors, producers and performers, including
background actors with no scripted lines) by a qualified film production
company  or a qualified independent film production company for services
performed by those individuals in one of the counties specified in  this
paragraph  in  connection with a qualified film with a minimum budget of
five hundred thousand dollars. For purposes of this  additional  credit,

S. 7509--A                         28                         A. 9509--A

the services must be performed in one or more of the following counties:
Albany,  Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua, Chemung,
Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie,  Essex,
Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
Livingston,  Madison,  Monroe,  Montgomery,  Niagara,  Oneida, Onondaga,
Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer,  Saratoga,
Schenectady,  Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli-
van, Tioga, Tompkins, Ulster, Warren,  Washington,  Wayne,  Wyoming,  or
Yates.  The  aggregate  amount  of  tax  credits allowed pursuant to the
authority of this paragraph shall be  five  million  dollars  each  year
during  the  period  two  thousand fifteen through two thousand [twenty-
four] TWENTY-FIVE of the annual allocation made available to the program
pursuant to paragraph four of subdivision  (e)  of  this  section.  Such
aggregate  amount of credits shall be allocated by the governor's office
for motion picture and television development among taxpayers  in  order
of  priority based upon the date of filing an application for allocation
of film production credit with such office.   If  the  total  amount  of
allocated  credits  applied for under this paragraph in any year exceeds
the aggregate amount of tax credits allowed for  such  year  under  this
paragraph,  such  excess  shall be treated as having been applied for on
the first day of the next year. If the total  amount  of  allocated  tax
credits  applied  for under this paragraph at the conclusion of any year
is less than five million dollars, the remainder  shall  be  treated  as
part  of the annual allocation made available to the program pursuant to
paragraph four of subdivision (e) of this section. However, in no  event
may  the  total  of  the  credits allocated under this paragraph and the
credits allocated under paragraph five of  subdivision  (a)  of  section
thirty-one  of  this  article  exceed  five  million dollars in any year
during the period two thousand fifteen  through  two  thousand  [twenty-
four] TWENTY-FIVE.
  § 5-b. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended  by  chapter  683  of  the  laws  of 2019, is amended to read as
follows:
  (4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through two thousand [twenty-four] TWENTY-FIVE provided  however,  seven
million  dollars  of  the  annual  allocation shall be available for the
empire state film post production credit pursuant to section  thirty-one
of  this  article  in  two  thousand thirteen and two thousand fourteen,
twenty-five million dollars of the annual allocation shall be  available
for  the  empire  state  film post production credit pursuant to section
thirty-one of this article in each year starting in two thousand fifteen
through two thousand [twenty-four] TWENTY-FIVE and five million  dollars
of  the  annual  allocation  shall  be made available for the television
writers' and directors' fees and salaries  credit  pursuant  to  section
twenty-four-b  of  this  article  in  each year starting in two thousand
twenty through two thousand [twenty-four] TWENTY-FIVE. This amount shall
be allocated by the governor's office for motion picture and  television
development  among  taxpayers in accordance with subdivision (a) of this
section. If the commissioner of economic development determines that the
aggregate amount of tax credits available from additional pool 2 for the
empire state film production tax credit have been previously  allocated,
and  determines  that  the pending applications from eligible applicants
for the empire state film post production tax credit pursuant to section
thirty-one of this article is insufficient to  utilize  the  balance  of

S. 7509--A                         29                         A. 9509--A

unallocated  empire  state  film  post  production tax credits from such
pool, the remainder, after such  pending  applications  are  considered,
shall  be  made  available  for  allocation in the empire state film tax
credit  pursuant  to  this  section,  subdivision  twenty of section two
hundred ten-B and subsection (gg) of section six  hundred  six  of  this
chapter.  Also,  if  the commissioner of economic development determines
that the aggregate amount of tax credits available from additional  pool
2  for the empire state film post production tax credit have been previ-
ously allocated, and  determines  that  the  pending  applications  from
eligible  applicants  for  the  empire  state film production tax credit
pursuant to this section is insufficient to utilize the balance of unal-
located film production tax credits from such pool, then all or part  of
the  remainder, after such pending applications are considered, shall be
made available for allocation for the empire state film post  production
credit  pursuant  to this section, subdivision thirty-two of section two
hundred ten-B and subsection (qq) of section six  hundred  six  of  this
chapter.  The governor's office for motion picture and television devel-
opment must notify taxpayers of their allocation year  and  include  the
allocation  year on the certificate of tax credit. Taxpayers eligible to
claim a credit must report the allocation year directly on their  empire
state  film production credit tax form for each year a credit is claimed
and include a copy of the certificate with their tax return. In the case
of a qualified film that receives  funds  from  additional  pool  2,  no
empire state film production credit shall be claimed before the later of
the  taxable  year  the production of the qualified film is complete, or
the taxable year immediately following the allocation year for which the
film has been allocated credit  by  the  governor's  office  for  motion
picture and television development.
  § 5-c. Paragraph 6 of subdivision (a) of section 31 of the tax law, as
amended  by  section 3 of part SSS of chapter 59 of the laws of 2019, is
amended to read as follows:
  (6) For the period two thousand fifteen through two thousand  [twenty-
four]  TWENTY-FIVE,  in  addition to the amount of credit established in
paragraph two of this subdivision, a taxpayer shall be allowed a  credit
equal to the product (or pro rata share of the product, in the case of a
member of a partnership) of ten percent and the amount of wages or sala-
ries  paid to individuals directly employed (excluding those employed as
writers, directors, music directors, producers and performers, including
background actors with no scripted  lines)  for  services  performed  by
those  individuals in one of the counties specified in this paragraph in
connection with the post production work on  a  qualified  film  with  a
minimum  budget  of  five  hundred  thousand dollars at a qualified post
production facility in one of the counties listed in this paragraph. For
purposes of this additional credit, the services must  be  performed  in
one  or more of the following counties: Albany, Allegany, Broome, Catta-
raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland,  Dela-
ware,  Erie,  Essex,  Franklin,  Fulton,  Genesee,  Hamilton,  Herkimer,
Jefferson, Lewis,  Livingston,  Madison,  Monroe,  Montgomery,  Niagara,
Oneida,  Onondaga,  Ontario, Orleans, Oswego, Otsego, Schenectady, Scho-
harie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins,  Wayne,
Wyoming,  or Yates. The aggregate amount of tax credits allowed pursuant
to the authority of this paragraph shall be five  million  dollars  each
year  during the period two thousand fifteen through two thousand [twen-
ty-four] TWENTY-FIVE of the annual  allocation  made  available  to  the
empire  state  film post production credit pursuant to paragraph four of
subdivision (e) of section twenty-four of this article.  Such  aggregate

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amount of credits shall be allocated by the governor's office for motion
picture  and television development among taxpayers in order of priority
based upon the date of filing an  application  for  allocation  of  post
production  credit  with  such  office. If the total amount of allocated
credits applied for under this paragraph in any year exceeds the  aggre-
gate  amount  of tax credits allowed for such year under this paragraph,
such excess shall be treated as having been applied for on the first day
of the next year. If the total amount of allocated tax  credits  applied
for under this paragraph at the conclusion of any year is less than five
million  dollars,  the  remainder shall be treated as part of the annual
allocation for two thousand seventeen made available to the empire state
film post production credit pursuant to paragraph  four  of  subdivision
(e) of section twenty-four of this article. However, in no event may the
total  of  the  credits  allocated  under this paragraph and the credits
allocated under paragraph five of subdivision (a) of section twenty-four
of this article exceed five million dollars in any year during the peri-
od two thousand fifteen through two thousand [twenty-four] TWENTY-FIVE.
  § 6. This act shall take effect immediately; provided,  however,  that
the  amendments  made  by sections one, three and five of this act shall
apply to applications that are filed  with  the  governor's  office  for
motion picture and television development on or after April 1, 2020.

                                 PART N

  Section 1. Subdivision 13 of section 1901 of the real property tax law
is amended by adding a new paragraph (c) to read as follows:
  (C)  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE GOVERN-
ING BODY OF A MUNICIPAL CORPORATION THAT HAS ADOPTED THE  PROVISIONS  OF
PARAGRAPH  (C)  OF SUBDIVISION ONE OF SECTION FIVE HUNDRED EIGHTY-ONE OF
THIS CHAPTER RELATING TO CONVERTED CONDOMINIUM UNITS  IS  AUTHORIZED  TO
ADOPT  A  LOCAL  LAW OR, IN THE CASE OF A SCHOOL DISTRICT, A RESOLUTION,
PROVIDING THAT SUCH CONVERTED CONDOMINIUM UNITS SHALL BE  CLASSIFIED  IN
THE  HOMESTEAD  CLASS  FOR  PURPOSES  OF  TAXES LEVIED BY SUCH MUNICIPAL
CORPORATION.
  § 2. This act shall take effect immediately.

                                 PART O

  Section 1. The tax law is amended by adding a  new  section  171-w  to
read as follows:
  §  171-W. STATE SUPPORT FOR THE LOCAL ENFORCEMENT OF PAST-DUE PROPERTY
TAXES. 1. LEGISLATIVE FINDINGS. THE LEGISLATURE FINDS THAT LOCAL GOVERN-
MENTS HAVE LIMITED MEANS TO ENFORCE THE COLLECTION OF PAST-DUE  PROPERTY
TAXES.  THE  LEGISLATURE  FURTHER  FINDS  THAT IT IS APPROPRIATE FOR THE
STATE TO SUPPORT THE LOCAL ENFORCEMENT OF  PAST-DUE  PROPERTY  TAXES  BY
AUTHORIZING  THE  COMMISSIONER  TO ADMINISTER A PROGRAM TO DISALLOW STAR
CREDITS AND EXEMPTIONS TO DELINQUENT PROPERTY OWNERS BASED  ON  INFORMA-
TION REPORTED TO HIM OR HER BY MUNICIPAL OFFICIALS.
  2. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION:
  (A)  "DELINQUENT  PROPERTY OWNER" MEANS A STAR RECIPIENT WHOSE PRIMARY
RESIDENCE IS SUBJECT TO PAST-DUE PROPERTY TAXES.
  (B) "PAST-DUE PROPERTY TAXES" MEANS  PROPERTY  TAXES  THAT  HAVE  BEEN
LEVIED  UPON A PROPERTY OWNER'S PRIMARY RESIDENCE THAT REMAIN UNPAID ONE
YEAR AFTER THE LAST DATE ON WHICH THEY  COULD  HAVE  BEEN  PAID  WITHOUT
INTEREST,  OR  WHERE SUCH TAXES ARE PAYABLE IN INSTALLMENTS, THOSE TAXES

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THAT REMAIN UNPAID ONE YEAR AFTER THE  LAST  DATE  ON  WHICH  THE  FINAL
INSTALLMENT COULD HAVE BEEN PAID WITHOUT INTEREST.
  (C)  "STAR  CREDIT" MEANS THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY
SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
  (D) "STAR EXEMPTION" MEANS THE EXEMPTION FROM REAL  PROPERTY  TAXATION
AUTHORIZED  BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX
LAW.
  (E) "STAR RECIPIENT" MEANS A  PROPERTY  OWNER  WHO  IS  REGISTERED  TO
RECEIVE  THE STAR CREDIT IN RELATION TO HIS OR HER PRIMARY RESIDENCE, OR
WHOSE PRIMARY RESIDENCE IS RECEIVING THE STAR EXEMPTION.
  3.  STAR  TAX  PAYMENT  REQUIREMENT;  GENERALLY.  NOTWITHSTANDING  ANY
PROVISION  OF  LAW TO THE CONTRARY, A PROPERTY OWNER WHOSE PRIMARY RESI-
DENCE IS SUBJECT TO PAST-DUE PROPERTY TAXES  SHALL  NOT  BE  ALLOWED  TO
RECEIVE  A  STAR  CREDIT  OR STAR EXEMPTION UNLESS THE PAST-DUE PROPERTY
TAXES ARE PAID IN FULL ON OR BEFORE A DATE SPECIFIED BY THE  COMMISSION-
ER.
  4.  COMMISSIONER'S AUTHORITY. THE COMMISSIONER IS HEREBY AUTHORIZED TO
DEVELOP A PROGRAM TO SUPPORT THE LOCAL ENFORCEMENT OF PAST-DUE  PROPERTY
TAXES  BY  DISALLOWING  STAR  CREDITS  AND STAR EXEMPTIONS TO DELINQUENT
PROPERTY OWNERS. THE COMMISSIONER SHALL  ESTABLISH  PROCEDURES  FOR  THE
ADMINISTRATION  OF  THIS  PROGRAM,  WHICH  SHALL  INCLUDE  THE FOLLOWING
PROVISIONS:
  (A) THE PROCEDURES BY WHICH MUNICIPAL OFFICIALS SHALL REPORT  PAST-DUE
PROPERTY TAXES AND PROPERTY TAX PAYMENTS TO THE DEPARTMENT.
  (B)  THE  PROCEDURES  BY  WHICH THE DEPARTMENT SHALL NOTIFY DELINQUENT
PROPERTY OWNERS OF THE IMPENDING DISALLOWANCE OF THEIR STAR  CREDITS  OR
EXEMPTIONS DUE TO PAST-DUE PROPERTY TAXES.
  (C)  THE DATE BY WHICH DELINQUENT PROPERTY OWNERS MUST PAY THEIR PAST-
DUE PROPERTY TAXES IN FULL IN ORDER TO AVOID DISALLOWANCE OF THEIR  STAR
CREDITS OR EXEMPTIONS.
  (D) THE PROCEDURES BY WHICH THE COMMISSIONER SHALL DISALLOW STAR CRED-
ITS AND NOTIFY ASSESSORS OF THE DISALLOWANCE OF STAR EXEMPTIONS IF PAST-
DUE PROPERTY TAXES ARE NOT PAID IN FULL BY THE SPECIFIED DATE.
  (E)  SUCH OTHER PROCEDURES AS THE COMMISSIONER SHALL DEEM NECESSARY TO
CARRY OUT THE PROVISIONS OF THIS SECTION.
  5. MUNICIPAL REPORTS. THE COMMISSIONER'S PROCEDURES REGARDING  MUNICI-
PAL REPORTING SHALL BE SUBJECT TO THE FOLLOWING PROVISIONS:
  (A) THE COMMISSIONER MAY REQUEST AND SHALL BE ENTITLED TO RECEIVE FROM
ANY MUNICIPAL CORPORATION OF THE STATE, OR ANY AGENCY OR OFFICIAL THERE-
OF,  SUCH  DATA  AS  THE  COMMISSIONER DEEMS NECESSARY TO EFFECTUATE THE
PURPOSES OF THIS SECTION.  SUCH INFORMATION SHALL BE  SUBMITTED  TO  THE
DEPARTMENT  AT  SUCH  TIME  AND  IN  SUCH MANNER AS THE COMMISSIONER MAY
DIRECT.
  (B) IN LIEU OF REQUIRING MUNICIPAL OFFICIALS TO SUBMIT  THEIR  REPORTS
DIRECTLY  TO  THE  DEPARTMENT,  THE  COMMISSIONER  MAY,  IN  HIS  OR HER
DISCRETION, REQUIRE THAT SUCH REPORTS BE SUBMITTED TO THE COUNTY  DIREC-
TOR  OF REAL PROPERTY TAX SERVICES, WHO SHALL INTEGRATE THE REPORTS INTO
A SINGLE FILE AND SUBMIT IT TO THE DEPARTMENT AT SUCH TIME AND  IN  SUCH
MANNER  AS THE COMMISSIONER MAY DIRECT. PROVIDED, THAT WHERE THE COMMIS-
SIONER INSTITUTES SUCH A PROCEDURE, HE OR SHE MAY  EXCLUDE  CITIES  WITH
ONE  HUNDRED  TWENTY-FIVE THOUSAND INHABITANTS OR MORE, SO THAT INFORMA-
TION ABOUT PAST-DUE PROPERTY TAXES AND PROPERTY TAX PAYMENTS IN  SUCH  A
CITY  SHALL  BE REPORTED DIRECTLY TO THE DEPARTMENT BY A DESIGNATED CITY
OFFICIAL AT SUCH TIME AND IN SUCH MANNER AS THE COMMISSIONER MAY DIRECT.

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  (C) REPORTS AND OTHER RECORDS PREPARED PURSUANT TO THIS SECTION  SHALL
NOT  BE  SUBJECT TO THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS
LAW.
  6.  NOTIFICATION  OF  DELINQUENT  PROPERTY  OWNERS. THE COMMISSIONER'S
PROCEDURES REGARDING THE  NOTIFICATION  OF  DELINQUENT  PROPERTY  OWNERS
SHALL BE SUBJECT TO THE FOLLOWING PROVISIONS:
  (A) THE DEPARTMENT SHALL NOTIFY A DELINQUENT PROPERTY OWNER BY REGULAR
MAIL AT LEAST THIRTY DAYS PRIOR TO THE DATE BY WHICH HIS OR HER PAST-DUE
PROPERTY  TAXES  MUST  BE PAID IN FULL IN ORDER TO AVOID DISALLOWANCE OF
HIS OR HER STAR CREDIT OR EXEMPTION.
  (B) SUCH NOTICE SHALL INCLUDE A STATEMENT THAT  THE  PROPERTY  OWNER'S
STAR  CREDIT  OR EXEMPTION WILL BE DISALLOWED UNLESS HIS OR HER PAST-DUE
PROPERTY TAXES ARE PAID IN FULL BY THE DATE SPECIFIED IN THE NOTICE.
  (C) TO THE EXTENT  PRACTICABLE,  SUCH  NOTICE  SHALL  PROVIDE  CONTACT
INFORMATION  FOR  THE  LOCAL  OFFICIAL OR OFFICIALS TO WHOM THE PAST-DUE
PROPERTY TAXES MAY BE PAID.
  (D) SUCH NOTICE SHALL FURTHER STATE THAT THE PROPERTY OWNER'S RIGHT TO
PROTEST THE DISALLOWANCE OF THE STAR CREDIT OR EXEMPTION IS  LIMITED  TO
RAISING  ISSUES THAT CONSTITUTE A "MISTAKE OF FACT" AS DEFINED IN SUBDI-
VISION NINE OF THIS SECTION.
  (E) SUCH NOTICE MAY INCLUDE SUCH OTHER INFORMATION AS THE COMMISSIONER
MAY DEEM NECESSARY.
  7. TIMELY PAYMENT OF PAST-DUE PROPERTY TAXES. IF A DELINQUENT PROPERTY
OWNER PAYS HIS OR HER PAST-DUE PROPERTY TAXES IN FULL ON OR  BEFORE  THE
DATE SPECIFIED IN SUCH NOTICE, THE OFFICIAL RECEIVING SUCH PAYMENT SHALL
SO  NOTIFY  THE DEPARTMENT AT SUCH TIME AND IN SUCH MANNER AS PRESCRIBED
BY THE COMMISSIONER. THE PROPERTY  OWNER  SHALL  THEN  BE  PERMITTED  TO
RECEIVE  THE STAR CREDIT OR EXEMPTION THAT WOULD HAVE BEEN DISALLOWED IF
TIMELY PAYMENT HAD NOT BEEN MADE. HOWEVER, IF THE  DEPARTMENT  DOES  NOT
LEARN  OF THE PAYMENT UNTIL AFTER IT HAS ALREADY DIRECTED AN ASSESSOR TO
DENY A STAR EXEMPTION TO A DELINQUENT PROPERTY OWNER, THEN  IN  LIEU  OF
DIRECTING  THE EXEMPTION TO BE RESTORED, THE DEPARTMENT MAY REMIT TO THE
PROPERTY OWNER PAYMENT IN AN AMOUNT THAT  WILL  REIMBURSE  THE  PROPERTY
OWNER  FOR  THE  INCREASE IN HIS OR HER SCHOOL TAX BILL THAT IS DIRECTLY
ATTRIBUTABLE TO THE LOST STAR EXEMPTION.
  8. FAILURE TO MAKE TIMELY PAYMENT. (A) IF THE PAST-DUE TAXES  ARE  NOT
PAID ON OR BEFORE THE DATE SPECIFIED IN THE NOTICE THAT HAD BEEN SENT TO
THE  DELINQUENT PROPERTY OWNER, HIS OR HER STAR CREDIT OR STAR EXEMPTION
SHALL BE DISALLOWED IN ACCORDANCE WITH THE PROCEDURES ESTABLISHED BY THE
COMMISSIONER.
  (B) THE DELINQUENT PROPERTY OWNER SHALL BE PERMANENTLY INELIGIBLE  FOR
ANY STAR CREDIT OR EXEMPTION THAT HAS BEEN DISALLOWED, EVEN IF THE PAST-
DUE  PROPERTY  TAXES  ARE  SUBSEQUENTLY PAID IN FULL. THE PROPERTY OWNER
SHALL NOT BE ELIGIBLE TO PARTICIPATE IN THE STAR PROGRAM AGAIN  AS  LONG
AS THE PROPERTY IS SUBJECT TO PAST-DUE PROPERTY TAXES.
  (C)  UPON PAYMENT OF THE PAST-DUE PROPERTY TAXES IN FULL, THE OFFICIAL
RECEIVING SUCH PAYMENT SHALL NOTIFY THE DEPARTMENT AT SUCH TIME  AND  IN
SUCH  MANNER  AS MAY BE PRESCRIBED BY THE COMMISSIONER. THE COMMISSIONER
SHALL THEN PROCEED AS FOLLOWS:
  (I) IF THE PROPERTY OWNER HAD PREVIOUSLY BEEN RECEIVING THE STAR CRED-
IT, THE COMMISSIONER SHALL ALLOW THE PROPERTY OWNER TO RESUME HIS OR HER
PARTICIPATION IN THE STAR CREDIT PROGRAM  ON  A  PROSPECTIVE  BASIS,  IF
OTHERWISE  ELIGIBLE,  EFFECTIVE  WITH  THE FIRST TAXABLE YEAR COMMENCING
AFTER SUCH PAYMENT.
  (II) IF THE PROPERTY OWNER HAD  PREVIOUSLY  BEEN  RECEIVING  THE  STAR
EXEMPTION,  THE  COMMISSIONER  SHALL ALLOW THE PROPERTY OWNER TO PARTIC-

S. 7509--A                         33                         A. 9509--A

IPATE IN THE STAR CREDIT PROGRAM ON A PROSPECTIVE  BASIS,  IF  OTHERWISE
ELIGIBLE,  EFFECTIVE  WITH  THE FIRST TAXABLE YEAR COMMENCING AFTER SUCH
PAYMENT. THE PROPERTY OWNER SHALL NOT BE  ALLOWED  BACK  INTO  THE  STAR
EXEMPTION PROGRAM.
  9.  MISTAKE  OF  FACT.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, A
DISALLOWANCE OF A STAR CREDIT OR STAR EXEMPTION PURSUANT TO THIS SECTION
MAY ONLY BE CHALLENGED BEFORE THE DEPARTMENT ON THE GROUNDS OF A MISTAKE
OF FACT AS DEFINED IN THIS SUBDIVISION. THE TAXPAYER WILL HAVE NO  RIGHT
TO  COMMENCE A COURT ACTION, ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM
OF LEGAL RECOURSE AGAINST AN ASSESSOR, COUNTY DIRECTOR OF REAL  PROPERTY
TAX  SERVICES  OR  OTHER LOCAL OFFICIAL REGARDING SUCH DISALLOWANCE. FOR
THE PURPOSES OF THIS SUBDIVISION, "MISTAKE OF FACT" IS LIMITED TO CLAIMS
THAT: (I) THE INDIVIDUAL NOTIFIED IS NOT THE TAXPAYER AT ISSUE; OR  (II)
THE  PAST-DUE PROPERTY TAXES WERE SATISFIED BEFORE THE DATE SPECIFIED IN
THE NOTICE DESCRIBED IN SUBDIVISION SIX OF THIS SECTION. HOWEVER,  NOTH-
ING  IN  THIS  SUBDIVISION  IS INTENDED TO LIMIT A TAXPAYER FROM SEEKING
RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION SIX  HUNDRED
FIFTY-FOUR  OF  THIS  CHAPTER  TO  THE EXTENT THAT HE OR SHE IS ELIGIBLE
PURSUANT TO THAT SUBDIVISION OR ESTABLISHING TO THE DEPARTMENT THAT  THE
ENFORCEMENT  OF  THE  UNDERLYING  PROPERTY  TAXES HAS BEEN STAYED BY THE
FILING OF A PETITION PURSUANT TO THE  BANKRUPTCY  CODE  OF  1978  (TITLE
ELEVEN OF THE UNITED STATES CODE).
  10. ASSESSORS. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRA-
RY,  THE  DEPARTMENT  MAY  DISCLOSE TO ASSESSORS SUCH INFORMATION AS THE
COMMISSIONER DEEMS NECESSARY TO  ENSURE  THAT  THE  STAR  EXEMPTIONS  OF
DELINQUENT PROPERTY OWNERS ARE DISALLOWED AS REQUIRED BY THIS SECTION.
  (B)  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, AN ASSESSOR
SHALL BE AUTHORIZED AND DIRECTED TO DENY A STAR EXEMPTION  TO  A  DELIN-
QUENT  PROPERTY OWNER UPON BEING DIRECTED BY THE DEPARTMENT TO DO SO. IF
AN ASSESSOR SHOULD RECEIVE SUCH A DIRECTIVE AFTER THE APPLICABLE ASSESS-
MENT ROLL HAS BEEN FILED, THE ASSESSOR OR OTHER OFFICIAL HAVING  CUSTODY
AND CONTROL OF THAT ROLL SHALL BE AUTHORIZED AND DIRECTED TO REMOVE SUCH
EXEMPTION  FROM  SUCH  ROLL  PRIOR  TO THE LEVY OF SCHOOL TAXES, WITHOUT
REGARD TO THE PROVISIONS OF TITLE THREE OF  ARTICLE  FIVE  OF  THE  REAL
PROPERTY  TAX  LAW  OR  ANY  COMPARABLE LAWS GOVERNING THE CORRECTION OF
ADMINISTRATIVE ERRORS ON ASSESSMENT ROLLS AND TAX ROLLS.
  11. RECOVERY OF STAR BENEFITS IN CERTAIN CASES. THE  COMMISSIONER  MAY
ESTABLISH  PROCEDURES  TO  BE  FOLLOWED  IN CASES WHERE A STAR CREDIT OR
EXEMPTION WAS INADVERTENTLY OR  ERRONEOUSLY  PROVIDED  TO  A  DELINQUENT
PROPERTY  OWNER  WHO  WAS SENT THE NOTICE REQUIRED BY SUBDIVISION SIX OF
THIS SECTION, AND WHOSE PAST-DUE PROPERTY TAXES WERE NOT PAID IN FULL BY
THE DATE SPECIFIED IN THE NOTICE. SUCH PROCEDURES SHALL INCLUDE, BUT NOT
BE LIMITED TO, (A) APPLYING  THE  IMPROPERLY  RECEIVED  STAR  CREDIT  OR
EXEMPTION  AS  AN  OFFSET  AGAINST  FUTURE STAR CREDITS OR AGAINST OTHER
PERSONAL INCOME TAX CREDITS OR PERSONAL INCOME TAX REFUNDS TO WHICH  THE
DELINQUENT  PROPERTY OWNER WOULD OTHERWISE BE ENTITLED, AND (B) PURSUING
ANY OF THE OTHER REMEDIES THAT  ARE  AVAILABLE  TO  ENFORCE  A  PERSONAL
INCOME TAX DEBT UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER.
  § 2. This act shall take effect immediately.

                                 PART P

  Section  1.  Section  1530  of the real property tax law is amended by
adding a new subdivision 1-a to read as follows:
  1-A. IN THE EVENT THAT A  DIRECTOR  OF  REAL  PROPERTY  TAX  SERVICES,
APPOINTED  PURSUANT  TO  THE  PROVISIONS  OF  THIS SECTION, IS UNABLE TO

S. 7509--A                         34                         A. 9509--A

PERFORM THE DUTIES OF THE  OFFICE  OF  DIRECTOR  OF  REAL  PROPERTY  TAX
SERVICES  OR  THE OFFICE BECOMES VACANT, THE APPOINTING AUTHORITY MAY BY
RESOLUTION DESIGNATE OR APPOINT AN ACTING DIRECTOR OF REAL PROPERTY  TAX
SERVICES.  WHERE  AN  ACTING  DIRECTOR  OF REAL PROPERTY TAX SERVICES IS
DESIGNATED OR APPOINTED PURSUANT TO THIS SECTION, THE APPOINTING AUTHOR-
ITY SHALL NOTIFY THE COMMISSIONER WITHIN FIFTEEN  DAYS  OF  MAKING  SUCH
DESIGNATION    OR  APPOINTMENT. THE ACTING DIRECTOR OF REAL PROPERTY TAX
SERVICES SHALL FUNCTION AS DIRECTOR OF REAL PROPERTY TAX SERVICES  UNTIL
SUCH  TIME  AS  THE  DIRECTOR  OF  REAL PROPERTY TAX SERVICES IS ABLE TO
RESUME THE POSITION OR UNTIL A REPLACEMENT IS APPOINTED. IN THE EVENT AN
ACTING DIRECTOR OF REAL PROPERTY TAX SERVICES FUNCTIONS AS  DIRECTOR  OF
REAL  PROPERTY  TAX  SERVICES FOR MORE THAN SIX MONTHS, THEN SUCH ACTING
DIRECTOR OF REAL PROPERTY TAX SERVICES SHALL BE  REQUIRED  TO  MEET  THE
MINIMUM  QUALIFICATION  STANDARDS  REQUIRED  BY  THIS  TITLE FOR PERSONS
APPOINTED TO THE OFFICE OF DIRECTOR OF REAL PROPERTY TAX SERVICES.
  § 2. This act shall take effect immediately.

                                 PART Q

  Section 1. Paragraph i of subdivision 1-e of section 333 of  the  real
property  law,  as  amended  by section 5 of part X of chapter 56 of the
laws of 2010 and as further amended by subdivision (d) of section  1  of
part W of chapter 56 of the laws of 2010, is amended to read as follows:
  i.  A  recording  officer  shall  not  record or accept for record any
conveyance of real property affecting land  in  New  York  state  unless
accompanied  by  EITHER  (A)  a  transfer  report form prescribed by the
commissioner of taxation and finance [or in lieu  thereof,  confirmation
from  the  commissioner  that  the required data has been reported to it
pursuant to paragraph vii of this subdivision,] and the  fee  prescribed
pursuant  to  subdivision three of this section, OR (B) A RECEIPT ISSUED
BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SECTION FOURTEEN
HUNDRED TWENTY-THREE  OF  THE  TAX  LAW  THAT  CONFIRMS  THE  ELECTRONIC
SUBMISSION  OF A CONSOLIDATED REAL PROPERTY TRANSFER FORM AND PAYMENT OF
THE ASSOCIATED TAXES AND FEES.
  § 2. Paragraph v of subdivision 1-e of section 333 of the real proper-
ty law, as amended by section 5 of part X of chapter 56 of the  laws  of
2010  and as further amended by section 1 of part W of chapter 56 of the
laws of 2010, is amended to read as follows:
  v. (1) The provisions of this subdivision shall not operate to invali-
date any conveyance of real property where one  or  more  of  the  items
designated  as  subparagraphs  one through eight of paragraph ii of this
subdivision, have not  been  reported  or  which  has  been  erroneously
reported,  nor  affect  the  record  contrary  to the provisions of this
subdivision, nor impair any title founded on such conveyance or  record.
[Such]
  (2) SUBJECT TO THE PROVISIONS OF SECTION FOURTEEN HUNDRED TWENTY-THREE
OF THE TAX LAW, SUCH form shall contain an affirmation as to the accura-
cy of the contents made both by the transferor or transferors and by the
transferee  or transferees. Provided, however, that if the conveyance of
real property occurs as a result of a  taking  by  eminent  domain,  tax
foreclosure,  or  other  involuntary  proceeding such affirmation may be
made only by either the condemnor, tax district, or other party to  whom
the  property has been conveyed, or by that party's attorney. The affir-
mations required by this paragraph shall be made in the form and  manner
prescribed  by  the  commissioner,  provided  that  notwithstanding  any

S. 7509--A                         35                         A. 9509--A

provision of law to the contrary, affirmants may be allowed,  but  shall
not be required, to sign such affirmations electronically.
  §  3. Paragraphs vii and viii of subdivision 1-e of section 333 of the
real property law are REPEALED.
  § 4. Subdivision 3 of section 333 of the real property law, as amended
by section 2 of part JJ of chapter 56 of the laws of 2009 and as further
amended by section 1 of part W of chapter 56 of the  laws  of  2010,  is
amended to read as follows:
  3.  The  recording  officer  of  every county and the city of New York
shall impose a fee of two hundred fifty dollars, or in  the  case  of  a
transfer involving qualifying residential or farm property as defined by
paragraph  iv of subdivision one-e of this section, a fee of one hundred
twenty-five dollars, for every real  property  transfer  reporting  form
submitted  for  recording  as  required  under subdivision one-e of this
section. In the city of New York, the recording officer shall  impose  a
fee  of  one  hundred  dollars  for each real property transfer tax form
filed in accordance with chapter  twenty-one  of  title  eleven  of  the
administrative code of the city of New York, except where a real proper-
ty  transfer  reporting  form  is  also  submitted for recording for the
transfer as required  under  subdivision  one-e  of  this  section.  The
recording  officer shall deduct nine dollars from such fee and remit the
remainder of the revenue collected to the commissioner of  taxation  and
finance  every  month for deposit into the general fund. The amount duly
deducted by the recording officer shall be retained by the county or  by
the  city  of  New  York.  PROVIDED, HOWEVER, THAT THE RECORDING OFFICER
SHALL NOT IMPOSE SUCH A FEE WHERE THE CONVEYANCE  IS  ACCOMPANIED  BY  A
RECEIPT  ISSUED  BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO
SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW THAT  CONFIRMS  THE
ELECTRONIC  SUBMISSION OF A CONSOLIDATED REAL PROPERTY TRANSFER FORM AND
PAYMENT OF THE ASSOCIATED TAXES AND FEES.
  § 5. Subdivision (c) of section 1407 of the tax  law,  as  amended  by
chapter 61 of the laws of 1989, is amended to read as follows:
  (c)  Every  recording  officer  designated  to act as such agent shall
retain, from the real estate transfer tax which he OR SHE collects,  the
sum  of  one  dollar  for  each  of  the first five thousand conveyances
accepted for recording and for which he OR SHE has issued a  documentary
stamp  or  metering machine stamp or upon which instrument effecting the
conveyance he OR SHE has noted payment of the tax or that no tax is due,
pursuant to any other method for payment of the tax provided for in  the
regulations  of  the  commissioner  of taxation and finance, during each
annual period commencing on the first day of August and  ending  on  the
next succeeding thirty-first day of July and seventy-five cents for each
conveyance  in  excess  of  five thousand accepted for recording and for
which he OR SHE has issued such a stamp or upon which instrument effect-
ing the conveyance he OR SHE has noted payment of the tax or that no tax
is due, pursuant to such other method, during such annual  period.  Such
fee shall be payable even though the stamp issued or such notation shows
that  no  tax is due. Such a fee paid to the register of the city of New
York shall belong to the city of New York and  such  a  fee  paid  to  a
recording  officer  of  a  county outside such city shall belong to such
officer's county. With respect to any other  agents  designated  to  act
pursuant  to  subdivision (a) of this section, the commissioner of taxa-
tion and finance shall  have  the  power  to  provide,  at  his  OR  HER
discretion,  for  payment  of  a  fee  to such agent, in such manner and
amount and subject to such limitations as he OR SHE may  determine,  but
any  such fee for any annual period shall not be greater than the sum of

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one dollar for each of the first five  thousand  conveyances  for  which
such  agent  has issued a documentary stamp or metering machine stamp or
upon which instrument effecting the  conveyance  he  OR  SHE  has  noted
payment  of  the tax or that no tax is due, pursuant to any other method
for payment of the tax provided for in the regulations  of  the  commis-
sioner  of  taxation and finance, during such annual period and seventy-
five cents for each conveyance in excess of five thousand for which such
agent has issued such a stamp or upon  which  instrument  effecting  the
conveyance  such  agent  has  noted payment of the tax or that no tax is
due, pursuant to such other method, during such annual period. PROVIDED,
HOWEVER, THAT WHERE THE RECORDING OFFICER IS  PROVIDED  WITH  A  RECEIPT
ISSUED  BY THE COMMISSIONER PURSUANT TO SECTION FOURTEEN HUNDRED TWENTY-
THREE OF THIS ARTICLE THAT  CONFIRMS  THE  ELECTRONIC  SUBMISSION  OF  A
CONSOLIDATED  REAL  PROPERTY TRANSFER FORM AND PAYMENT OF THE ASSOCIATED
TAXES AND FEES, THE RECORDING OFFICER SHALL NEITHER COLLECT SUCH TAX NOR
IMPOSE SUCH FEE.
  § 6. Subdivision (b) of section 1409 of the tax law, as added by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  (b) [The] SUBJECT TO THE PROVISIONS OF SECTION FOURTEEN HUNDRED  TWEN-
TY-THREE  OF ARTICLE, THE return shall be signed by both the grantor and
the grantee.  Where a conveyance has more than one grantor or more  than
one  grantee,  the  return  shall  be signed by all of such grantors and
grantees. Where any or all of the grantors or any or all of the grantees
have failed to sign a return, it shall be accepted as a return if signed
by any one of the grantors or by any  one  of  the  grantees.  Provided,
however,  those  not  signing  the  return  shall not be relieved of any
liability for the tax imposed by this article and the period of  limita-
tions  for assessment of tax or of additional tax shall not apply to any
such party.
  § 7. Subdivision (b) of section 1410 of the tax law, as added by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  (b) A recording officer shall not record  an  instrument  effecting  a
conveyance  unless  EITHER  (I)  the return required by section fourteen
hundred nine of this article has been filed and the real estate transfer
tax due, if any, shall have been paid as provided in  this  section,  OR
(II)  THE  INSTRUMENT  IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMIS-
SIONER PURSUANT TO SECTION FOURTEEN HUNDRED TWENTY-THREE OF THIS ARTICLE
THAT CONFIRMS THE ELECTRONIC SUBMISSION OF A CONSOLIDATED REAL  PROPERTY
TRANSFER FORM AND PAYMENT OF THE ASSOCIATED TAXES AND FEES.
  §  8.  The  tax law is amended by adding a new section 1423 to read as
follows:
  §  1423.  MODERNIZATION  OF  REAL  PROPERTY  TRANSFER  REPORTING.  (A)
NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER
IS HEREBY AUTHORIZED TO IMPLEMENT A SYSTEM FOR THE ELECTRONIC COLLECTION
OF DATA RELATING TO TRANSFERS OF REAL PROPERTY. IN CONNECTION THEREWITH,
THE COMMISSIONER MAY COMBINE THE TWO FORMS REFERRED TO IN PARAGRAPH  (I)
OF  THIS  SUBDIVISION INTO A CONSOLIDATED REAL PROPERTY TRANSFER FORM TO
BE FILED WITH HIM OR HER ELECTRONICALLY; PROVIDED:
  (I) THE TWO FORMS THAT MAY BE SO COMBINED ARE THE REAL ESTATE TRANSFER
TAX RETURN REQUIRED BY SECTION FOURTEEN HUNDRED NINE  OF  THIS  ARTICLE,
AND  THE  REAL PROPERTY TRANSFER REPORT REQUIRED BY SUBDIVISION ONE-E OF
SECTION THREE HUNDRED THIRTY-THREE OF THE REAL  PROPERTY  LAW.  HOWEVER,
THE  COMMISSIONER  SHALL  CONTINUE TO MAINTAIN BOTH SUCH RETURN AND SUCH
REPORT AS SEPARATE FORMS, SO THAT A PARTY WHO  PREFERS  NOT  TO  FILE  A
CONSOLIDATED REAL PROPERTY TRANSFER FORM WITH THE COMMISSIONER ELECTRON-
ICALLY  SHALL HAVE THE OPTION OF FILING BOTH SUCH RETURN AND SUCH REPORT

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WITH THE RECORDING OFFICER, AS  OTHERWISE  PROVIDED  BY  LAW.  UNDER  NO
CIRCUMSTANCES  SHALL A CONSOLIDATED REAL PROPERTY TRANSFER FORM BE FILED
WITH, OR ACCEPTED BY, THE RECORDING OFFICER.
  (II)  NOTWITHSTANDING THE PROVISIONS OF SECTION FOURTEEN HUNDRED EIGH-
TEEN OF THIS ARTICLE, ANY INFORMATION APPEARING ON A  CONSOLIDATED  REAL
PROPERTY TRANSFER FORM THAT IS REQUIRED TO BE INCLUDED ON THE REAL PROP-
ERTY  TRANSFER  REPORT  REQUIRED  BY  SUBDIVISION ONE-E OF SECTION THREE
HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW SHALL BE SUBJECT TO PUBLIC
DISCLOSURE.
  (III) WHEN A CONSOLIDATED REAL PROPERTY  TRANSFER  FORM  IS  ELECTRON-
ICALLY SUBMITTED TO THE DEPARTMENT BY EITHER THE GRANTOR OR GRANTEE, THE
ACT  OF  SUBMITTING  SUCH  FORM SHALL BE DEEMED TO BE THE SIGNING OF THE
RETURN AS REQUIRED BY PARAGRAPH (V) OF SUBDIVISION  ONE-E  OF  THE  REAL
PROPERTY LAW OR SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED NINE OF THIS
ARTICLE,  AND  THE  REQUIREMENT THAT ALL THE GRANTORS AND GRANTEES SHALL
SIGN THE RETURN SHALL NOT APPLY. HOWEVER, THE FACT  THAT  A  GRANTOR  OR
GRANTEE HAS NOT ELECTRONICALLY SUBMITTED THE FORM SHALL NOT RELIEVE THAT
GRANTOR OR GRANTEE OF ANY LIABILITY FOR THE TAX IMPOSED BY THIS ARTICLE.
  (B)  WHEN A CONSOLIDATED REAL PROPERTY TRANSFER FORM IS FILED WITH THE
COMMISSIONER ELECTRONICALLY PURSUANT TO THIS SECTION,  THE  REAL  ESTATE
TRANSFER  TAX  IMPOSED UNDER THIS ARTICLE, AND THE FEE THAT WOULD OTHER-
WISE BE RETAINED BY THE RECORDING OFFICER PURSUANT TO SUBDIVISION  THREE
OF SECTION THREE HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW, SHALL BE
PAID  TO  THE  COMMISSIONER  THEREWITH. THE COMMISSIONER SHALL RETAIN ON
BEHALF OF THE RECORDING OFFICER THE  PORTION  OF  SUCH  TAX  THAT  WOULD
OTHERWISE HAVE BEEN RETAINED BY THE RECORDING OFFICER PURSUANT TO SUBDI-
VISION  (C)  OF  SECTION FOURTEEN HUNDRED SEVEN OF THIS ARTICLE, AND THE
PORTION OF SUCH FEE THAT WOULD  OTHERWISE  HAVE  BEEN  RETAINED  BY  THE
RECORDING OFFICER PURSUANT TO SUBDIVISION THREE OF SECTION THREE HUNDRED
THIRTY-THREE  OF  THE  REAL  PROPERTY LAW. THE MONEYS SO RETAINED BY THE
COMMISSIONER ON BEHALF OF THE RECORDING OFFICER, HEREINAFTER REFERRED TO
AS THE RECORDING OFFICER'S FEES, SHALL  BE  DEPOSITED  DAILY  WITH  SUCH
RESPONSIBLE  BANKS,  BANKING HOUSES, OR TRUST COMPANIES AS MAY BE DESIG-
NATED BY THE STATE COMPTROLLER.  OF  THE  RECORDING  OFFICER'S  FEES  SO
DEPOSITED,  THE COMPTROLLER SHALL RETAIN IN THE COMPTROLLER'S HANDS SUCH
AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS  OR
REIMBURSEMENTS  OF  SUCH  FEES  COLLECTED  OR  RECEIVED PURSUANT TO THIS
SECTION,  OUT  OF  WHICH  THE  COMPTROLLER  SHALL  PAY  ANY  REFUNDS  OR
REIMBURSEMENTS OF SUCH FEES TO WHICH PERSONS SHALL BE ENTITLED UNDER THE
PROVISIONS OF THIS SECTION. THE COMPTROLLER, AFTER RESERVING SUCH REFUND
AND  REIMBURSEMENT  FUND  SHALL,  ON  OR  BEFORE THE TWELFTH DAY OF EACH
MONTH, PAY TO THE APPROPRIATE RECORDING OFFICERS AN AMOUNT EQUAL TO  THE
RECORDING  OFFICER'S  FEES  RESERVED ON THEIR BEHALF. PROVIDED, HOWEVER,
THAT THE COMMISSIONER IS AUTHORIZED  TO  REQUEST  THAT  THE  COMPTROLLER
REFRAIN  FROM  MAKING SUCH A PAYMENT OF SUCH FEES TO A RECORDING OFFICER
UNTIL THE COMMISSIONER HAS CERTIFIED TO THE COMPTROLLER THAT THE RECORD-
ING OFFICER HAS SUPPLIED  THE  COMMISSIONER  WITH  THE  LIBER  AND  PAGE
NUMBERS OF THE RECORDED INSTRUMENTS THAT GAVE RISE TO SUCH FEES.
  (C)  THE  SYSTEM  FOR  THE  ELECTRONIC SUBMISSION OF CONSOLIDATED REAL
PROPERTY TRANSFER FORMS SHALL BE DESIGNED SO THAT  UPON  THE  SUCCESSFUL
ELECTRONIC FILING OF SUCH A FORM AND THE PAYMENT OF THE ASSOCIATED TAXES
AND  FEES, THE PARTY SUBMITTING THE SAME SHALL BE PROVIDED WITH AN ELEC-
TRONIC RECEIPT IN A FORM PRESCRIBED BY THE  COMMISSIONER  THAT  CONFIRMS
SUCH  FILING  AND  PAYMENT.  SUCH  PARTY MAY FILE A PRINTED COPY OF SUCH
RECEIPT WITH THE RECORDING OFFICER WHEN OFFERING THE ASSOCIATED  INSTRU-
MENT  FOR  RECORDING, IN LIEU OF SUBMITTING TO THE RECORDING OFFICER THE

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RETURN, REPORT, TAX AND FEE THAT  WOULD  OTHERWISE  HAVE  BEEN  REQUIRED
UNDER  THIS  ARTICLE  AND  SUBDIVISIONS ONE-E AND THREE OF SECTION THREE
HUNDRED THIRTY-THREE OF THE REAL PROPERTY  LAW.  THE  RECORDING  OFFICER
SHALL RETAIN SUCH RECEIPT FOR A MINIMUM OF THREE YEARS, UNLESS OTHERWISE
DIRECTED  BY  THE  COMMISSIONER, AND SHALL PROVIDE A COPY THEREOF TO THE
COMMISSIONER FOR INSPECTION UPON HIS OR HER REQUEST.
  (D) UPON RECORDING THE INSTRUMENT TO WHICH THE CONSOLIDATED REAL PROP-
ERTY TRANSFER FORM PERTAINS, THE RECORDING  OFFICER  SHALL  PROVIDE  THE
COMMISSIONER  WITH  THE  LIBER AND PAGE THEREOF AT SUCH TIME AND IN SUCH
MANNER AS THE COMMISSIONER SHALL PRESCRIBE.
  (E) THE PROVISIONS OF THIS SECTION SHALL NOT BE  APPLICABLE  WITHIN  A
CITY  OR  COUNTY  THAT HAS IMPLEMENTED ITS OWN ELECTRONIC SYSTEM FOR THE
RECORDING OF DEEDS, THE FILING OF THE REAL ESTATE TRANSFER  TAX  RETURNS
AND  THE  REAL PROPERTY TRANSFER REPORTS PRESCRIBED BY THE COMMISSIONER,
AND THE PAYMENT OF THE ASSOCIATED TAXES AND FEES, UNLESS  SUCH  CITY  OR
COUNTY  SHOULD AGREE TO ALLOW THE SYSTEM IMPLEMENTED BY THE COMMISSIONER
PURSUANT TO THIS SECTION TO BE USED THEREIN.
  § 9. This act shall take effect immediately.

                                 PART R

  Section 1. Section 19 of the public lands law, as amended  by  chapter
449 of the laws of 2016, is amended to read as follows:
  § 19. Taxes  and  assessments for local improvements on state lands. A
person, body or board authorized to assess lands for local  improvements
or  purposes, shall submit to the comptroller of the state an invoice of
assessment on state lands, showing the purpose for which the  assessment
is  made,  the  state  lands assessed and the amounts for which they are
assessed, and referring to the law authorizing the assessment.  No  fee,
interest,  penalty or expense shall be added to or accrue on any assess-
ment against state lands, nor shall such lands  be  sold  therefor;  but
such  assessments  shall,  if  confirmed  and  uncontested,  be paid and
discharged out of any moneys appropriated therefor. All sales  of  state
lands for unpaid taxes or assessments for local improvements or purposes
are void. All taxes and assessments legally made on state lands, and all
legal  rents or charges thereon, shall be audited by the comptroller and
paid out of the treasury. On  or  before  January  fifteenth  the  comp-
troller,  in consultation with the [board of real property tax services]
DEPARTMENT OF TAXATION AND FINANCE and other agencies as may  be  appro-
priate,  shall  submit  to  the  governor  and the legislature an annual
accounting of taxes and assessments paid pursuant to this section during
the preceding and current fiscal years. Such accounting  shall  include,
but  not  be limited to the number, type and amount of such payments, as
well as an estimate of payments to be made during the remainder  of  the
current  fiscal  year  and  during  the  following  fiscal  year. If any
provision of this section conflict  with  any  provision  of  any  other
general,  special or local law, this section shall prevail; and no other
general, special or local law  shall  be  deemed  to  repeal,  alter  or
abridge any provision of this section, unless this section or this arti-
cle  or  this chapter be expressly and specifically referred to therein.
This section shall extend, in its operation and effect, so as to include
all actions and proceedings, whether judicial or administrative, hereto-
fore commenced under any general, special or local law and now pending.
  § 2. Subdivision 3 of section 19-b of the public lands law, as amended
by chapter 385 of the laws of 1994, is amended to read as follows:

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  3. Such state aid shall be payable upon application to the state comp-
troller by the chief fiscal officer of the taxing authority which quali-
fies for aid pursuant to this section. The application shall be made  on
a form prescribed by such comptroller and shall contain such information
as  such  comptroller  shall require. On or before January fifteenth the
comptroller, in consultation with the [board of real property  services]
DEPARTMENT  OF  TAXATION AND FINANCE and other agencies as may be appro-
priate, shall submit to the  governor  and  the  legislature  an  annual
accounting of state aid paid pursuant to this section during the preced-
ing  and current fiscal years. Such accounting shall include, but not be
limited to the number, type and amount of such payments, as well  as  an
estimate  of  payments  to  be  made during the remainder of the current
fiscal year and during the following fiscal year.
  § 3. Subdivision 6 of section 291-i of the real property law, as added
by chapter 549 of the laws of 2011, is amended to read as follows:
  6. Nothing contained in this section shall be construed to authorize a
recording officer to furnish digitized paper documents  of  the  reports
required  by  section five hundred seventy-four of the real property tax
law. Such reports shall be furnished as paper documents with the  requi-
site  notations  thereon, except where the [state board of real property
services] DEPARTMENT OF TAXATION AND FINANCE has agreed to  accept  data
submissions  in  lieu  thereof or has provided for the electronic trans-
mission of such data pursuant to law.
  § 4. Subdivision 18 of section 102 of the real  property  tax  law  is
REPEALED.
  §  5. The article heading of article 2 of the real property tax law is
amended to read as follows:
           [STATE BOARD] COMMISSIONER OF TAXATION AND FINANCE
  § 6. Sections 200 and 200-A of the real property tax law are REPEALED.
  § 7. Subdivisions 1 and 7 of section 201 of the real property tax law,
as added by section 5 of part W of chapter 56 of the laws of  2010,  are
amended to read as follows:
  1.  On  and  after  the effective date of this section, the functions,
powers and duties of the  state  board  of  real  property  services  as
formerly  established  by  this  chapter  shall be considered functions,
powers and duties of the commissioner of taxation and  finance[,  except
to the extent provided by section two hundred-a of this article].
  7. (a) All rules, regulations, acts, orders, determinations, and deci-
sions of the state board of real property services or the office of real
property services, in force at the time of such transfer and assumption,
shall  continue  in  full  force and effect as rules, regulations, acts,
orders, determinations and decisions of the department until duly  modi-
fied or abrogated by the commissioner or the department.
  (b) All acts, orders, determinations, and decisions of the state board
of  real  property  services  pertaining  to  the  functions  and powers
provided in FORMER section two hundred-a of this article shall  continue
in  full  force and effect as acts, orders, determinations and decisions
of the [state board of real property tax services] COMMISSIONER.
  § 8. Section 203 of the real property tax law, as amended by section 7
of part W of chapter 56 of the laws of  2010,  is  amended  to  read  as
follows:
  §  203.  Office of real property tax services. There is hereby created
within the department of taxation and finance an office of real property
tax services. The head of the office shall be a deputy commissioner  for
real property tax services[, who shall also be the executive officer for
and  secretary  of  the  state board of real property tax services]. The

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deputy commissioner for real property tax services shall be appointed by
the governor. He or  she  shall  exercise  such  powers  and  duties  in
relation  to real property tax administration as may be delegated to him
or her by the commissioner, shall report directly to the commissioner on
the  activities  of the office, and shall hold office at the pleasure of
the commissioner. The commissioner may appoint such officers, employees,
agents, consultants and special committees as he or she may deem  neces-
sary  to  carry  out the provisions of this chapter, and shall prescribe
their duties.
  § 9. Sections 204, 206 and 208  of  the  real  property  tax  law  are
REPEALED.
  §  10. Clause (D) of subparagraph (iv) of paragraph (b) of subdivision
4 of section 425 of the real property tax law, as amended by  section  1
of  part  PP  of  chapter  59 of the laws of 2019, is amended to read as
follows:
  (D) Notwithstanding any provision of law to the contrary,  neither  an
assessor  nor a board of assessment review has the authority to consider
an objection to the replacement or removal or  denial  of  an  exemption
pursuant  to  this  subdivision, nor may such an action be reviewed in a
proceeding to review an assessment pursuant to title  one  or  one-A  of
article  seven  of  this  chapter. Such an action may only be challenged
before the department. If a taxpayer is dissatisfied  with  the  depart-
ment's  final determination, the [taxpayer may appeal that determination
to the state board of real property tax services in a form and manner to
be prescribed by the commissioner. Such appeal  shall  be  filed  within
forty-five  days  from  the  issuance of the department's final determi-
nation. If dissatisfied  with  the  state  board's  determination,  the]
taxpayer  may  seek judicial review thereof pursuant to article seventy-
eight of the civil practice law and rules. The taxpayer shall  otherwise
have  no  right to challenge such final determination in a court action,
administrative proceeding or any other form of  legal  recourse  against
the  commissioner, the department, [the state board of real property tax
services,] the assessor or other person having custody or control of the
assessment roll or tax roll regarding such action.
  § 11. Paragraph (d) of subdivision 14 of section 425 of the real prop-
erty tax law, as added by section 1 of part J of chapter 57 of the  laws
of 2013, is amended to read as follows:
  (d) Notwithstanding the provisions of paragraph (b) of subdivision six
of  this  section,  neither an assessor nor a board of assessment review
has the authority to consider an objection to the removal or  denial  of
an  exemption  pursuant  to  this subdivision, nor may such an action be
reviewed in a proceeding to review an assessment pursuant to  title  one
or  one-A  of  article seven of this chapter. Such an action may only be
challenged before the department of taxation and finance. If a  taxpayer
is dissatisfied with the department's final determination, [the taxpayer
may  appeal  that  determination to the state board of real property tax
services in a form and manner to be prescribed by the commissioner. Such
appeal shall be filed within forty-five days from the  issuance  of  the
department's final 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 determi-
nation in a court action, administrative proceeding or any other form of
legal recourse against the commissioner, the department of taxation  and
finance,  [the  state board of real property tax services,] the assessor

S. 7509--A                         41                         A. 9509--A

or other person having custody or control of the assessment roll or  tax
roll regarding such action.
  § 12. Subparagraph (iii) of paragraph (b) of subdivision 15 of section
425  of the real property tax law, as amended by section 1 of part JJ of
chapter 60 of the laws of 2016, is amended to read as follows:
  (iii) notwithstanding the provisions of paragraph (b)  of  subdivision
six  of  this  section,  neither  an  assessor nor a board of assessment
review has the authority to consider an objection to the  recoupment  of
an  exemption  pursuant  to  this subdivision, nor may such an action be
reviewed in a proceeding to review an assessment pursuant to  title  one
or  one-A  of  article seven of this chapter. Such an action may only be
challenged before the department. If an owner is dissatisfied  with  the
department's  final  determination,  [the owner may appeal that determi-
nation to the board in a form and manner to be prescribed by the commis-
sioner. Such appeal shall be filed within forty-five days from the issu-
ance of the department's final determination. If dissatisfied  with  the
board's  determination,]  the  owner  may  seek  judicial review thereof
pursuant to article seventy-eight of the civil practice law  and  rules.
The owner shall otherwise have no right to challenge such final determi-
nation  in  a court action, administrative proceeding, including but not
limited to an administrative proceeding pursuant to article forty of the
tax law, or any other form of legal recourse against  the  commissioner,
the  department,  [the  board,] the assessor, or any other person, state
agency, or local government.
  § 13. Section 489-o of the  real  property  tax  law,  as  amended  by
section  13  of  part W of chapter 56 of the laws of 2010, is amended to
read as follows:
  § 489-o. Final determination  of  railroad  ceiling;  certificate.  1.
After  the hearing provided for in section four hundred eighty-nine-n of
this title, the [state board of real property tax services] COMMISSIONER
shall finally determine the railroad ceiling for the railroad real prop-
erty of each railroad company situated in each assessing unit.  Whenever
upon  complaint  the  [state  board] COMMISSIONER shall revise the local
reproduction cost of a railroad company in an assessing unit, [it] HE OR
SHE shall revise the railroad ceiling therefor to reflect such revision,
but [it] HE OR SHE shall not, on account of such  revision,  modify  any
other determination with respect to the railroad ceilings for such rail-
road  company for such year.  Notwithstanding the fact that no complaint
shall have been filed with respect to a  tentative  determination  of  a
railroad  ceiling,  the  [state board] COMMISSIONER shall give effect to
any special equalization rate established, pursuant to  subdivision  two
of  section  four hundred eighty-nine-l of this title prior to the final
determination of the railroad ceiling.
  2. Not later than ten days before the last date prescribed by law  for
the  levy  of taxes, the [state board] COMMISSIONER shall file a certif-
icate setting forth each railroad ceiling as finally determined with the
assessor of the appropriate assessing unit or the town or county  asses-
sor  who  prepares  a  copy of the applicable part of the town or county
assessment roll for village tax  purposes  as  provided  in  subdivision
three  of  section fourteen hundred two of this chapter, and at the same
time shall transmit to each railroad company for which such ceiling  has
been determined a duplicate copy of such certificate.
  3.  Any final determination of a railroad ceiling by the [state board]
COMMISSIONER pursuant to  subdivision  one  of  this  section  shall  be
subject  to  judicial review in a proceeding under article seventy-eight
of the civil practice law and rules.

S. 7509--A                         42                         A. 9509--A

  § 14. Section 489-ll of the real property tax law, as added by chapter
920 of the laws of 1977, subdivision 1 as amended by section 14 of  part
W of chapter 56 of the laws of 2010, subdivision 2 as amended by chapter
735  of  the  laws of 1983, and subdivision 3 as added by chapter 841 of
the laws of 1986, is amended to read as follows:
  §  489-ll.  Final  determination  of railroad ceiling; certificate. 1.
After the hearing provided for in section four hundred eighty-nine-kk of
this title, the [state board of real property tax services] COMMISSIONER
shall finally determine the railroad ceiling for the railroad real prop-
erty of each railroad company situated in each assessing unit.  Whenever
upon  complaint  the  [state  board] COMMISSIONER shall revise the local
reproduction cost of a railroad company in an assessing unit, [it] HE OR
SHE shall revise  the  appropriate  railroad  ceiling  to  reflect  such
revision,  but  [it]  HE  OR SHE shall not, on account of such revision,
modify any other determination with respect to the railroad ceilings for
such railroad company for such year.  Notwithstanding the fact  that  no
complaint  shall  have  been  filed with respect to a tentative determi-
nation of a railroad ceiling, the [state board] COMMISSIONER shall  give
effect to any special equalization rate established pursuant to subdivi-
sion  two  of section four hundred eighty-nine-jj of this title prior to
the final determination of the railroad ceiling.
  2. Not later than ten days before the last date prescribed by law  for
the  levy  of taxes, the [state board] COMMISSIONER shall file a certif-
icate setting forth each railroad ceiling as finally determined with the
assessor of the appropriate assessing unit or the town or county  asses-
sor  who  prepares  a  copy of the applicable part of the town or county
assessment roll for village tax  purposes  as  provided  in  subdivision
three  of  section fourteen hundred two of this chapter, and at the same
time shall transmit to each railroad company for which such ceiling  has
been determined a duplicate copy of such certificate.
  3.  Any final determination of a railroad ceiling by the [state board]
COMMISSIONER pursuant to  subdivision  one  of  this  section  shall  be
subject  to  judicial review in a proceeding under article seventy-eight
of the civil practice law and rules.
  § 15. Section 547 of the real property tax law, as amended by  chapter
385 of the laws of 1994, is amended to read as follows:
  §  547. Annual report. On or before January fifteenth the comptroller,
in consultation with the [board of real property services]  COMMISSIONER
and  other  agencies as may be appropriate, shall submit to the governor
and the legislature an annual accounting of state aid, taxes and assess-
ments paid by the state pursuant to this article  during  the  preceding
and  current  fiscal  years.  Such  accounting shall include, but not be
limited to, the number, type and amount of claims so paid, as well as an
estimate of claims to be paid during the remainder of the current fiscal
year and during the following fiscal year.
  § 16. Section 614 of the real property tax law, as amended by  section
15  of  part  W of chapter 56 of the laws of 2010, is amended to read as
follows:
  § 614. Determination of final assessment of special franchises.  After
receiving  the  [commissioner's]  HEARING OFFICER'S report regarding any
complaint filed pursuant to section six hundred twelve of this  article,
the  [state  board  of  real  property  tax services] COMMISSIONER shall
determine the final assessment of each special franchise.
  § 17. Section 816 of the real property tax law, as amended by  chapter
36  of  the  laws  of  1980 and as further amended by subdivision (b) of

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section 1 of part W of chapter 56 of the laws of  2010,  is  amended  to
read as follows:
  §  816.  Review by [state board of real property tax services] COMMIS-
SIONER. The [state board of real  property  tax  services]  COMMISSIONER
shall  have  power  on  complaint to review the equalization made by any
county equalization agency. Such review shall be brought by  filing  the
complaint  with  the [state board of real property tax services] COMMIS-
SIONER at any time within thirty days from the date on which notice  was
given  pursuant to section eight hundred four of this article. Notice of
the hearing on such review shall be given by the [state  board  of  real
property  tax services] COMMISSIONER to the clerk of the county legisla-
tive body, whose duty it shall be to transmit a copy of such  notice  to
each  member  of  the county legislative body and to the chief executive
officer of each city and town in the county.
  § 18. Section 818 of the real property tax law, as amended by  chapter
615  of  the  laws of 1972, subdivision 3 as added by chapter 556 of the
laws of 2002, and subdivisions 1 and 3 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:
  § 818. Determination on review. 1. On review of the equalization  made
by the county equalization agency, the [state board of real property tax
services]  COMMISSIONER  shall review such equalization and shall deter-
mine whether such equalization is fair and equitable and  if  not,  what
corrections  should  be  made.  The  [state  board  of real property tax
services] COMMISSIONER shall certify its determination in writing to the
county legislative body and to the chief executive officer of each  city
or town complaining, if any.
  2.  Such  determination  shall  have  the  same force and effect as an
original equalization made by the county equalization agency within  the
time prescribed by law.
  3.  If  the  [state  board of real property tax services] COMMISSIONER
determines that the equalization made by a county equalization agency in
a county containing  a  designated  large  property,  as  that  term  is
described  in  section eight hundred forty-seven of this article, is not
fair and equitable, [it] HE  OR  SHE  shall  issue  an  order  directing
correction of such equalization, which may include the apportionment and
levy  of  taxes  in the manner provided in section eight hundred five of
this title.
  § 19. Section 1210 of the real property tax law, as amended by section
17 of part W of chapter 56 of the laws of 2010, is amended  to  read  as
follows:
  §  1210. Establishment of final state equalization rates, class ratios
and class equalization rates. After receiving the [commissioner's] HEAR-
ING OFFICER'S report regarding any complaint filed pursuant  to  section
twelve  hundred  eight  of this title, the [state board of real property
tax services] COMMISSIONER shall establish the final state  equalization
rate,  class ratios, and class equalization rates, if required, for each
city, town, village, special assessing unit, or approved assessing  unit
or  eligible non-assessing unit village which has adopted the provisions
of section nineteen hundred three of this chapter.
  § 20. Section 1218 of the real property tax law, as amended by section
18 of part W of chapter 56 of the laws of 2010, is amended  to  read  as
follows:
  § 1218. Review of final determinations of [state board of real proper-
ty  tax services] THE COMMISSIONER relating to state equalization rates.
A final determination of the [state board of real property tax services]

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COMMISSIONER relating to state equalization rates  may  be  reviewed  by
commencing  an  action in the appellate division of the supreme court in
the manner provided by article seventy-eight of the civil  practice  law
and  rules  upon  application  of  the county, city, town or village for
which the rate or rates were established. The standard of review in such
a proceeding shall be as specified in subdivision four of section seven-
ty-eight hundred three of the civil practice law and rules.  Whenever  a
final  order  is  issued  in such a proceeding directing a revised state
equalization rate, any county, village or school district that used  the
former  rate  in  the  apportionment of taxes must, upon receipt of such
final order, recalculate the levy that used such former rate and  credit
or debit as appropriate its constituent municipalities in its next levy.
Any special franchise assessments that were established using the former
rate  must,  upon  receipt of such final order, be revised by the [state
board] COMMISSIONER in accordance with the new rate, and, if taxes  have
already  been  levied  upon such assessments, the affected special fran-
chise owners shall either automatically receive a refund if there  is  a
decrease  or  be  taxed  on  an  increase in the next levy in the manner
provided for omitted parcels in title three  of  article  five  of  this
chapter.
  §  21.  Section 1263 of the real property tax law, as added by chapter
280 of the laws of 1978 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:
  § 1263. Notice of determination of tentative ratios and opportunity to
be heard. Not later than ninety days prior to the ensuing fiscal year of
the city  school  district,  the  [state  board  of  real  property  tax
services] COMMISSIONER shall provide written notice of the determination
of  tentative  ratios pursuant to this article to the board of education
of each city school district. The notice shall set forth  the  tentative
ratios,  identify  the assessment rolls for which the ratios were deter-
mined and shall specify the time and place where  the  [state  board  of
real  property tax services] COMMISSIONER or a duly authorized represen-
tative thereof will meet to hear objections presented by the appropriate
board of education concerning such ratios.  The notice must be served at
least ten days before the date specified for the hearing. After  hearing
any  objections, the [state board of real property tax services] COMMIS-
SIONER shall determine final ratios for the appropriate assessment rolls
in accordance with the provisions of this article. The board  of  educa-
tion  is  hereby  authorized  and  empowered  to  waive the hearing with
respect to such tentative ratios.
  § 22. This act shall take effect October 1, 2020.

                                 PART S

  Section 1. Paragraph (f) of subdivision 3 of section 425 of  the  real
property tax law is REPEALED.
  § 2. Section 171-y of the tax law is REPEALED.
  § 3. This act shall take effect immediately.

                                 PART T

  Section  1.  Subdivision  3  of section 489-c of the real property tax
law, as amended by chapter 733 of the laws of 2004, is amended  to  read
as follows:

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  3. Railroad real property shall be assessed according to its condition
and  ownership  as of the [first] THIRTY-FIRST day of [July] DECEMBER of
the year preceding the year in which the assessment roll on  which  such
assessment  will  be  entered is filed in the office of the city or town
clerk,  except  that it shall be assessed according to its condition and
ownership as of the [first] THIRTY-FIRST day of [July] DECEMBER  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 3 of section 489-cc of the real property tax law,  as
amended  by  chapter  733  of  the  laws  of 2004, is amended to read as
follows:
  3. Railroad real property shall be assessed according to its condition
and ownership as of the [first] THIRTY-FIRST day of [July]  DECEMBER  of
the  year  preceding the year in which the assessment roll on which such
assessment will be entered is filed in the office of the  city  or  town
clerk,  except  that it shall be assessed according to its condition and
ownership as of the [first] THIRTY-FIRST day of [July] DECEMBER  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.
  § 3. Section 499-nnnn of the real property tax law, as added by  chap-
ter 475 of the laws of 2013, is amended to read as follows:
  § 499-nnnn. Equalization rate. In determining assessment ceilings, the
commissioner  shall  apply  the  final  state equalization rate [for the
assessment roll of the local assessing jurisdiction for which the  ceil-
ing is established. If that final rate is not available, the commission-
er  shall  apply  the  most recent final state equalization rate for the
local assessing jurisdiction, except that if a special equalization rate
has been established as provided in title two of article twelve of  this
chapter,  such rate shall be applied. In the case of a special assessing
unit as defined in section eighteen hundred one  of  this  chapter,  the
equalization  rate to be applied shall be the applicable class equaliza-
tion rate] USED FOR THE LOCAL ASSESSING JURISDICTION ON  THE  ASSESSMENT
ROLL FOR THE YEAR IMMEDIATELY PRECEDING THE YEAR IN WHICH THE ASSESSMENT
CEILING  IS BEING ESTABLISHED, EXCEPT THAT (1) IF A SPECIAL EQUALIZATION
RATE WAS USED ON SUCH ASSESSMENT ROLL, SUCH RATE SHALL BE  APPLIED,  AND
(2)  IN THE CASE OF A SPECIAL ASSESSING UNIT AS DEFINED IN SECTION EIGH-
TEEN HUNDRED ONE OF THIS CHAPTER, THE EQUALIZATION RATE  TO  BE  APPLIED
SHALL  BE THE APPLICABLE CLASS EQUALIZATION RATE USED ON SUCH ASSESSMENT
ROLL.
  § 4. Subdivision 2 of section 499-pppp of the real property  tax  law,
as  added  by  chapter  475  of  the laws of 2013, is amended to read as
follows:
  2. Notwithstanding that a complaint  may  not  have  been  filed  with
respect  to  a  tentative  determination  of  an assessment ceiling, the
commissioner shall give effect to any special equalization  rate  estab-
lished  pursuant  to  section twelve hundred twenty-four of this chapter
[or the final state equalization rate for the assessment roll for  which
the  ceiling  is established as provided in section four hundred ninety-
nine-nnnn of this title] prior to the date for the  final  determination
of the assessment ceiling.
  §  5.  Section  3 of chapter 475 of the laws of 2013 amending the real
property tax law relating to assessment ceilings for local public utili-
ty mass real property is REPEALED.
  § 6. This act shall take effect immediately; provided,  however,  that
the amendments to title 5 of article 4 of the real property tax law made

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by  sections  three  and four of this act shall not affect the repeal of
such title and shall be deemed to be repealed therewith.

                                 PART U

  Section  1. Clause (A) of subparagraph (iv) of paragraph (b) of subdi-
vision 4 of section 425 of the real property  tax  law,  as  amended  by
section  1  of  part PP of chapter 59 of the laws of 2019, is amended to
read as follows:
  (A) Effective with applications for the enhanced  exemption  on  final
assessment  rolls to be completed in two thousand nineteen, the applica-
tion form shall indicate that all owners of the property and any owners'
spouses residing on the premises  must  have  their  income  eligibility
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.  THE
COMMISSIONER MAY, IN HIS OR HER DISCRETION, EXTEND THE ENROLLMENT PERIOD
OF  THE STAR INCOME VERIFICATION PROGRAM FOR PROPERTY OWNERS WHOSE PROP-
ERTY RECEIVED THE  ENHANCED  EXEMPTION  ON  THE  FINAL  ASSESSMENT  ROLL
COMPLETED  IN  TWO  THOUSAND EIGHTEEN BUT WHO FAILED TO ENROLL IN SUFFI-
CIENT TIME TO HAVE THE EXEMPTION CONTINUED ON THE FINAL ASSESSMENT  ROLL
COMPLETED IN TWO THOUSAND NINETEEN.  WHERE APPROPRIATE, THE COMMISSIONER
IS  FURTHER  AUTHORIZED  TO  REMIT  DIRECTLY  TO SUCH A PROPERTY OWNER A
PAYMENT IN AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE SCHOOL TAX BILL
THAT THE PROPERTY OWNER ACTUALLY RECEIVED AND THE SCHOOL TAX  BILL  THAT
THE PROPERTY OWNER WOULD HAVE RECEIVED HAD HE OR SHE ENROLLED IN A TIME-
LY MANNER.
  § 2. This act shall take effect immediately.

                                 PART V

  Section  1. Section 902 of the racing, pari-mutuel wagering and breed-
ing law is amended by adding a new subdivision 7 to read as follows:
  7. A FRANCHISED RACING CORPORATION MAY, IN ITS DISCRETION AND  AT  ITS
EXPENSE,  FUND  FOR  THE EXCLUSIVE USE OR UTILIZATION OF THE COMMISSION,
THE CONSTRUCTION AND INITIAL EQUIPPING OF AN  EQUINE  DRUG  TESTING  AND
RESEARCH  LABORATORY  LOCATED  WITHIN  THIS  STATE  TO  BE USED FOR SUCH
PURPOSES SPECIFIED IN SUBDIVISION ONE OF THIS SECTION. SUCH  CORPORATION
SHALL  CONSULT WITH THE COMMISSION REGARDING THE PROPER SCOPE AND EQUIP-
PING OF A LABORATORY.  THE SITING AND USE OF SUCH  LABORATORY  SHALL  BE
PURSUANT  TO  A  LONG-TERM LEASE BETWEEN THE CORPORATION AND THE COMMIS-
SION. THE COMMISSION SHALL OPERATE OR CONTRACT FOR THE OPERATION OF SUCH
LABORATORY.
  § 2. Paragraph 3 of subdivision f of section 1612 of the tax  law,  as
amended  by  chapter  174  of  the  laws  of 2013, is amended to read as
follows:
  3. Four percent of the total revenue wagered after payout of prizes to
be deposited into an account of the franchised  corporation  established
pursuant  to section two hundred six of the racing, pari-mutuel wagering
and breeding law to be used for capital expenditures in maintaining  and
upgrading  Aqueduct  racetrack, Belmont Park racetrack and Saratoga race
course. CAPITAL EXPENDITURES MAY INCLUDE FUNDING THE CONSTRUCTION OF AND

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INITIALLY EQUIPPING A STATE-BASED EQUINE DRUG TESTING AND RESEARCH LABO-
RATORY TO BE USED PURSUANT TO SUBDIVISION SEVEN OF SECTION NINE  HUNDRED
TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
  § 3. This act shall take effect immediately.

                                 PART W

  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;

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

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

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  B. TO COLLABORATE WITH NATIONAL  INDUSTRY  STAKEHOLDERS  AND  INDUSTRY
ORGANIZATIONS  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,

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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

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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 X

  Section 1. Paragraph (b) of subdivision  3  of  section  1367  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:

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  (b) A sports pool shall be PRIMARILY operated  in  a  sports  wagering
lounge located at a casino. The lounge shall conform to all requirements
concerning  square  footage,  design,  equipment,  security measures and
related matters which the commission shall by regulation prescribe.  THE
COMMISSION MAY ALSO APPROVE ADDITIONAL LOCATIONS FOR A SPORTS POOL WITH-
IN  THE  CASINO,  IN AREAS THAT HAVE BEEN APPROVED BY THE COMMISSION FOR
THE CONDUCT OF OTHER GAMING, TO BE OPERATED IN A MANNER AND  METHODOLOGY
AS REGULATION SHALL PRESCRIBE.
  § 2. This act shall take effect immediately.

                                 PART Y

  Section  1.  Paragraph  1  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:
  (1) sixty percent of the total amount for which tickets have been sold
for  [a  lawful lottery] THE QUICK DRAW game [introduced on or after the
effective date of this paragraph,] subject to [the following provisions:
  (A) such game shall be available only on premises occupied by licensed
lottery sales agents, subject to the following provisions:
  (i) if the licensee does not hold a license  issued  pursuant  to  the
alcoholic  beverage control law to sell alcoholic beverages for consump-
tion on the premises, then the  premises  must  have  a  minimum  square
footage greater than two thousand five hundred square feet;
  (ii)  notwithstanding  the  foregoing provisions, television equipment
that  automatically  displays  the  results  of  such  drawings  may  be
installed and used without regard to the square footage if such premises
are used as:
  (I) a commercial bowling establishment, or
  (II)  a facility authorized under the racing, pari-mutuel wagering and
breeding law to accept pari-mutuel wagers;
  (B) the] rules for the operation of such game [shall be] as prescribed
by regulations promulgated and adopted by the division, provided  howev-
er,  that such rules shall provide that no person under the age of twen-
ty-one may participate in such games on the premises of a  licensee  who
holds a license issued pursuant to the alcoholic beverage control law to
sell alcoholic beverages for consumption on the premises; and, provided,
further,  that such regulations may be revised on an emergency basis not
later than ninety days after the enactment of this paragraph in order to
conform such regulations to the requirements of this paragraph; or
  § 2. This act shall take effect immediately.

                                 PART Z

  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 HH of chapter 59 of the laws of 2019,  is  amended  to  read  as
follows:
  (a)  Any  racing  association  or  corporation  or  regional off-track
betting corporation, authorized to conduct  pari-mutuel  wagering  under
this  chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to  the
conditions  provided for in this article may apply to the commission for
a license so to do. Applications for licenses shall be in such  form  as
may  be  prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No  license

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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 [twenty] TWENTY-ONE; 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 [twenty] TWENTY-ONE; and (iv) no in-home simul-
casting in the thoroughbred special betting district shall occur without
the approval of the regional thoroughbred track.
  § 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section  2  of  part HH of chapter 59 of the laws of 2019, is amended to
read as follows:
  (iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for  the  period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [twenty] TWENTY-ONE, the amount used exclusively
for  purses  to  be  awarded  at races conducted by such receiving track
shall be computed as follows: of the sums so retained, two and  one-half

S. 7509--A                         55                         A. 9509--A

percent  of the total pools. Such amount shall be increased or decreased
in the amount of fifty percent of the difference  in  total  commissions
determined by comparing the total commissions available after July twen-
ty-first,  nineteen  hundred  ninety-five  to the total commissions that
would have been available to such  track  prior  to  July  twenty-first,
nineteen hundred ninety-five.
  §  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  3
of  part  HH  of  chapter  59 of the laws of 2019, 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 [twenty] TWENTY-ONE and on any day regardless of
whether  or not a franchised corporation is conducting a race meeting in
Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
two thousand [twenty] TWENTY-ONE.   On any day  on  which  a  franchised
corporation has not scheduled a racing program but a thoroughbred racing
corporation  located  within  the state is conducting racing, every off-
track betting corporation branch office and every simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into  a written agreement with such facility's representative horsemen's
organization, as approved by the commission), one thousand eight, or one
thousand nine of this article shall be authorized to accept  wagers  and
display  the  live  simulcast signal from thoroughbred tracks located in
another state or foreign country subject to the following provisions:
  § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part HH of  chapter  59  of
the laws of 2019, 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 [twenty] TWENTY-ONE.  This section shall  super-
sede all inconsistent provisions of this chapter.
  §  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  5
of  part  HH  of  chapter  59 of the laws of 2019, 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 [twenty] TWENTY-ONE.   Every off-track betting
corporation branch office and every simulcasting  facility  licensed  in
accordance  with  section  one  thousand  seven that have entered into a
written agreement with such facility's representative horsemen's  organ-
ization  as  approved by the commission, one thousand eight or one thou-
sand nine of this article shall  be  authorized  to  accept  wagers  and
display  the  live  full-card  simulcast  signal  of thoroughbred tracks
(which may include quarter horse or mixed  meetings  provided  that  all
such wagering on such races shall be construed to be thoroughbred races)
located  in  another  state or foreign country, subject to the following
provisions; provided,  however,  no  such  written  agreement  shall  be
required of a franchised corporation licensed in accordance with section
one thousand seven of this article:

S. 7509--A                         56                         A. 9509--A

  §  6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of part HH of chapter
59 of the laws of 2019, 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  [nineteen]  TWENTY,  when a franchised corporation is conducting a
race meeting within the state at Saratoga Race Course,  every  off-track
betting  corporation  branch  office  and  every  simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into a written agreement with such facility's representative  horsemen's
organization  as  approved by the commission), one thousand eight or one
thousand nine of this article shall be authorized to accept  wagers  and
display  the  live  simulcast signal from thoroughbred tracks located in
another state, provided that such facility shall accept wagers on  races
run  at  all  in-state  thoroughbred  tracks which are conducting racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  § 7. Section 32 of chapter 281 of  the  laws  of  1994,  amending  the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting,  as  amended  by section 7 of part HH of chapter 59 of the
laws of 2019, 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,  [2020]  2021;  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  HH of chapter 59 of the laws of 2019, 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, [2020] 2021; 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
HH of chapter 59 of the laws of 2019, is amended to read as follows:
  (a) The  franchised  corporation  authorized  under  this  chapter  to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute  all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for  payment
before  April  first  of  the year following the year of their purchase,
less an amount which shall be established and  retained  by  such  fran-
chised  corporation  of  between  twelve  to seventeen per centum of the

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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  [twenty]
TWENTY-ONE, 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 [twenty] TWENTY-ONE, such payment  shall  be  seven-
tenths of one per centum of such pools.
  § 10. This act shall take effect immediately.

                                 PART AA

  Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real
property  tax  law,  as amended by section 1 of part RR of chapter 59 of
the laws of 2019, is amended to read as follows:

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  (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 years,  the  parcel's  affil-
iated  income  may  be no greater than five hundred thousand dollars, as
determined  by the commissioner 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.  [Begin-
ning with] FOR the two  thousand  nineteen-two  thousand  twenty  school
year,  for  purposes  of  the  exemption authorized by this section, the
parcel's affiliated income may be no  greater  than  two  hundred  fifty
thousand  dollars,  as  so  determined.  BEGINNING WITH THE TWO THOUSAND
TWENTY--TWO  THOUSAND  TWENTY-ONE  SCHOOL  YEAR,  FOR  PURPOSES  OF  THE
EXEMPTION AUTHORIZED BY THIS SECTION, THE PARCEL'S AFFILIATED INCOME MAY
BE  NO  GREATER  THAN TWO HUNDRED 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 residing
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. This act shall take effect immediately.

                                 PART BB

  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,  restrict,  and  control the cultivation, processing, manufacture,
wholesale, and retail production, distribution,  transportation,  adver-
tising,  marketing,  and  sale  of  cannabis, cannabis products, medical
cannabis, and cannabinoid hemp within the state of  New  York,  for  the
purposes  of fostering and promoting temperance in their consumption, to
properly protect the public health, safety, and welfare, to displace the
illicit cannabis market,  to  provide  safe  and  affordable  access  to
medical cannabis for patients, and to promote social and economic equal-
ity.  It is hereby declared that such policy will best be carried out by
empowering the state office of cannabis  management  and  its  executive
director,  to  determine  whether public health, safety, convenience and

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advantage will be promoted by the issuance  of  registrations,  licenses
and/or permits granting the privilege to produce, distribute, transport,
sell,  or traffic in cannabis, medical cannabis, or cannabinoid hemp, to
increase or decrease in the number thereof, scope of activities, and the
location of premises registered, licensed, or permitted thereby, subject
only to the right of judicial review hereinafter provided for. It is the
purpose of this chapter to carry out that policy in the public interest.
The  restrictions, regulations, and provisions contained in this chapter
are enacted by the legislature for the protection of the health, safety,
and welfare of the people of the state.
  § 3. Definitions.   Whenever used in this  chapter,  unless  otherwise
expressly  stated  or  unless  the  context or subject matter requires a
different meaning, the following terms  shall  have  the  representative
meanings hereinafter set forth or indicated:
  1.  "Applicant"  means a person or for-profit entity or not-for-profit
corporation and includes: board  members,  officers,  managers,  owners,
partners,  principal stakeholders, financiers, and members who submit an
application to become a registered organization, licensee or  permittee,
and may include any other individual or entity with a material or opera-
tional  interest  in  the license or its operations as determined by its
executive director in regulation.
  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-tenths of one percent by weight or by volume of
delta-9  tetrahydrocannabinol,  or  its  isomer,  delta-8   dibenzopyran
numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1
(6)  monoterpene  numbering system or which exceeds an amount 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  per serving or per product determined by the
executive director in regulation.
  5. "Adult-use cannabis consumer" means a person, twenty-one  years  of
age  or  older,  who  purchases approved adult-use cannabis or adult-use
cannabis products for personal use, but not for resale to others.
  6. "Adult-use cannabis processor"  means  a  person  licensed  by  the
office  who  may  purchase  adult-use  cannabis  from adult-use cannabis
cultivators, and who  may  process  adult-use  cannabis,  and  adult-use
cannabis  products,  package and label adult-use cannabis, and adult-use
cannabis products for sale in adult-use cannabis retail outlets, and who
may sell adult-use cannabis and cannabis-infused products  at  wholesale
to  licensed  adult-use  cannabis distributors, in accordance with regu-
lations determined by the executive director.
  7. "Adult-use cannabis product"  or  "adult-use  cannabis"  means  any
approved  adult-use cannabis, concentrated cannabis, or adult-use canna-
bis-infused or extracted products, or products which  otherwise  contain
or  are  derived from adult-use cannabis, and which have been authorized
for distribution to and for use by an  adult-use  cannabis  consumer  as
determined by the executive director in regulation.

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  8.  "Adult-use  cannabis  retail  dispenser"  means a person or entity
licensed by the executive director who may purchase  adult-use  cannabis
products,  from  adult-use cannabis cultivators, processors or distribu-
tors, and who may sell approved adult-use cannabis products, in a retail
outlet,  in  accordance  with  regulations  determined  by the executive
director.
  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. "Adult-use cultivation"  shall  include,  the  planting,  growing,
cloning,  harvesting,  drying, curing, grading and trimming of adult-use
cannabis, or such other cultivation related processes as  determined  by
the executive director in regulation.
  14. "Executive director" means the executive director of the office of
cannabis management.
  15.  "Convicted"  and "conviction" include and mean a finding of guilt
resulting from a plea of guilty, the decision of a court  or  magistrate
or  the verdict of a jury, irrespective of the pronouncement of judgment
or the suspension thereof.
  16. "Designated caregiver" means an individual designated by a  certi-
fied  patient  in a registry application. A certified patient may desig-
nate up to two 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

S. 7509--A                         61                         A. 9509--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. "Hemp" means the plant Cannabis sativa L. and  any  part  of  such
plant, including the seeds thereof and all derivatives, extracts, canna-
binoids, isomers, acids, salts, and salts of isomers, whether growing or
not,  with a delta-9 tetrahydrocannabinol concentration of not more than
three-tenths of one percent on a dry weight or per volume basis.
  22. "Cannabinoid hemp" means any hemp and  any  product  processed  or
derived from hemp, that is used for human consumption provided that when
such  product  is  packaged or offered for retail sale to a consumer, it
shall not have a concentration of more than three-tenths of one  percent
of  delta-9  tetrahydrocannabinol  or  more  than  an  amount of delta-9
tetrahydrocannabinol per quantity of cannabinoid hemp product as  deter-
mined by the executive director in regulation.
  23.  "Cannabinoid  hemp  processor license" means a license granted by
the office to process, extract, pack or manufacture cannabinoid hemp  or
hemp  extract into products, whether in intermediate or final form, used
for human consumption.
  24. "Cannabinoid hemp retailer license" means a license granted by the
office to sell cannabinoid hemp, in final approved  form,  to  consumers
within the state.
  25.  "Individual  dose"  means a single measure of adult-use cannabis,
medical cannabis or cannabinoid hemp product, as determined by the exec-
utive director  in  regulation.  Individual  doses  may  be  established
through  a  measure of raw material, a measure of an individual cannabi-
noid or compound, or an equivalency thereof.
  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 and approved for a certified medical use, as
determined by the executive director in consultation  with  the  commis-
sioner 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-three of this section; and (iii) completes, at a mini-

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mum, a two-hour course as determined by the executive director in  regu-
lation;  provided  however,  the executive director may revoke a practi-
tioner's ability to certify patients for cause.
  35.  "Processing" includes, blending, extracting, infusing, packaging,
labeling, branding and otherwise making or preparing adult-use cannabis,
medical cannabis and cannibinoid hemp, or such other  related  processes
as  determined by the executive director in regulation. Processing shall
not include the cultivation of cannabis.
  36. "Registered organization" means an organization  registered  under
article three of this chapter.
  37. "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.
  38. "Registry identification card" means a document that identifies  a
certified  patient  or  designated  caregiver, as provided under section
thirty-two of this chapter.
  39. "Retail sale" or "sale at retail" means a sale to a consumer or to
any person for any purpose other than for resale.
  40. "Retailer" means any licensed  person  who  sells  at  retail  any
approved adult-use cannabis product.
  41.  "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.
  42.  "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.
  43.  "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.
  44. "Traffic in" includes to cultivate, process, manufacture, distrib-
ute or sell any cannabis, adult-use cannabis product or medical cannabis
at wholesale or retail.
  45. "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.
  46. "Wholesale sale" or "sale at wholesale" means a sale to any person
for purposes of resale.
  47. "Distributor" means any person who sells at wholesale  any  adult-
use  cannabis  product,  except  medical  cannabis,  the sale of which a
license is required under the provisions of this chapter.
  48. "Warehouse" means and includes a place in which cannabis  products
are housed or stored.

                                ARTICLE 2
              NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT
Section 7.  Establishment of an office of cannabis management.

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        8.  Establishment of the cannabis control board.
        9.  Functions, powers and duties of the cannabis control board.
        10. Executive director.
        11. Functions,  powers  and  duties  of the office and executive
              director.
        12. Rulemaking authority.
        13. Deputies; employees.
        14. Disposition of moneys received for license fees.
        15. Violations of cannabis laws or  regulations;  penalties  and
              injunctions.
        16. Formal hearings; notice and procedure.
        17. Ethics, transparency and accountability.
        18. Public health campaign.
        19. Traffic safety oral fluid or other roadside detection method
              pilot program.
        20. Establish uniform policies and best practices.
  § 7. Establishment of an office of cannabis management. There is here-
by  established,  within  the division of alcoholic beverage control, an
independent office of cannabis management, which  shall  have  exclusive
jurisdiction to exercise the powers and duties provided by this chapter.
The  office  shall  exercise  its  authority  by  and through a cannabis
control board and an executive director.
  § 8. Establishment of the cannabis control board.    1.  The  cannabis
control  board  or "board" is created and shall consist of a chairperson
with one vote, and four other voting board members, all of whom shall be
citizens and residents of this state.
  2. The governor shall appoint all members of the  board,    and  shall
designate  one  member to serve as chairperson. All members of the board
shall serve for a term of three years and shall  continue  to  serve  in
office  until  the  expiration of their terms and until their successors
are appointed and have qualified. The members,  other  than  the  chair-
person,  shall be compensated at a rate of two hundred sixty dollars per
day when performing the work of the board, together  with  an  allowance
for  actual  and  necessary  expenses incurred in the discharge of their
duties. No person shall be appointed to or employed  by  the  board  if,
during the period commencing three years prior to appointment or employ-
ment, such person held any direct or indirect interest in, or employment
by, any corporation, association or person engaged in regulated activity
within the state.
  3. Prior to appointment or employment, each member, officer or employ-
ee of the board shall swear or affirm that he or she possesses no inter-
est  in  any corporation or association holding a license, registration,
certificate or permit issued by the  board.  Thereafter,  no  member  or
officer of the board shall hold any direct interest in or be employed by
any applicant for or by any corporation, association or person holding a
license,  registration,  certificate or permit issued by the board for a
period of four years commencing on the date his or her  membership  with
the  board terminates. Further, no employee of the board may acquire any
direct or indirect interest in, or accept employment with, any applicant
for or any person holding a license, registration, certificate or permit
issued by the board for a period of two years commencing at  the  termi-
nation  of  employment  with  the  board.  The  board may, by resolution
adopted by unanimous vote at a properly noticed  public  meeting,  waive
for good cause the pre-employment restrictions enumerated in this subdi-
vision  for a prospective employee whose duties and responsibilities are
not policy-making. Such adopted resolution shall state the  reasons  for

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waiving  the  pre-employment  conditions  for  the prospective employee,
including a finding that there were no other qualified  candidates  with
the desired experience for the specified position.
  4.  Any  member  of the board may be removed by the governor for cause
after notice and an opportunity to be heard.
  5. In the event of a vacancy caused by the death, resignation, removal
or disability of any board member, the vacancy shall be  filled  in  the
same  manner as the original appointment; provided that in such instance
the governor may appoint a member of the board to serve  as  chairperson
for the remainder of their term.
  6. A majority of the board members of the authority shall constitute a
quorum  for  the  purpose of conducting business, and a majority vote of
those present shall be required for action.
  7. The board shall meet as frequently as its business may require, and
at least four times in each year. The board may enact and from  time  to
time  amend  by-laws in relation to its meetings and the transactions of
its business.
  § 9. Functions, powers and duties of the cannabis control  board.  The
cannabis  control  board  shall  have  such powers and duties as are set
forth in this chapter and shall:
  1. approve the office's social and economic equity  plan  pursuant  to
section eighty-four of this chapter;
  2.  approve  the  type  and number of available licenses issued by the
office;
  3. approve the opening of new license application periods and when new
or additional licenses are made available;
  4. approve the creation of any new type of license;
  5. approve any price quotas or price controls  set  by  the  executive
director as provided by this chapter;
  6.  at  the request of the executive director, appoint advisory groups
or committees necessary to provide assistance to the office to carry out
the policy of the state and purpose of this chapter;
  7. when an administrative decision is appealed by an applicant, regis-
tered organization, licensee or permittee, issue a  final  determination
of the office; and
  8.  promulgate  any rules and regulations necessary to effectuate this
chapter.
  § 10. Executive director.  The office shall  exercise  its  authority,
through  an  executive director. The executive director shall receive an
annual salary within the amounts appropriated therefor.
  § 11.  Functions, powers and duties of  the  executive  director.  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 the number, scope, and/or availability 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 or any person engaged in activities without a
license or permit for which a license or  permit  is  required  by  this
chapter.  Any civil penalty so imposed shall be in addition to and sepa-

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rate and apart from the terms and provisions of the bond required pursu-
ant to section thirty-five of this chapter.
  4.  To fix by rule the standards and requirements for the cultivation,
processing, packaging, marketing, and sale of medical  cannabis,  adult-
use  cannabis  and  cannabinoid  hemp, including but not limited to, the
ability to regulate potency, excipients, and  the  types  and  forms  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 cannabinoid hemp to
be sold or consumed in the state and to ensure  that  products  are  not
packaged,  marketed,  or  otherwise  trafficked  in  a way which targets
minors or promotes increased use or cannabis use disorders.
  5. 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 adult-use cannabis products, medical  canna-
bis or cannabinoid hemp, for and during the period of such emergency.
  6.  To  inspect or provide for the inspection at any time of any prem-
ises where adult-use cannabis, medical cannabis or cannabinoid  hemp  is
cultivated,  processed,  stored,  distributed  or sold including but not
limited to compelling the production and review of all relevant business
records and financial statements and corporate documents.
  7. To prescribe forms of applications, criteria of review  and  method
of  selection  or issuance for registrations, licenses and permits under
this chapter and of all reports deemed necessary by the office.
  8. Intentionally omitted.
  9. 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.
  10. To develop and establish minimum criteria for certifying employees
to work in the cannabis industry, which may include the establishment of
a cannabis workers certification program.
  11. 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.
  12. To establish and implement a  social  and  economic  equity  plan,
subject to approval of the board, to ensure access to, and participation
in,  the  cannabis  industry  by  social equity and economic empowerment
applicants as prescribed in section eighty-four of this chapter.
  13. 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 or
administrative hold of products and a product  recall  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.
  14. To issue guidance and industry advisories.
  15.  To recommend that the state enter into tribal-state compacts with
the New York state Indian nations and tribes, as defined by section  two
of the Indian law, authorizing such Indian nations or tribes to acquire,
possess,  manufacture,  sell, deliver, transport, distribute or dispense
adult-use cannabis and/or medical cannabis.

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  16. To coordinate across state agencies and departments  in  order  to
research  and  study  any  changes  in  cannabis use and the impact that
cannabis use and the regulated cannabis industry may have on  access  to
cannabis products, public health, and public safety.
  §  12.  Rulemaking  authority.  1.  The board shall perform such acts,
prescribe such forms and promulgate such rules, regulations  and  orders
as it may deem necessary or proper to fully effectuate the provisions of
this chapter, in accordance with the state administrative procedure act.
  2.  The  board  shall promulgate any and all necessary rules and regu-
lations governing the production, processing,  transportation,  distrib-
ution,  marketing,  advertising  and sale of medical cannabis, adult-use
cannabis and cannabinoid hemp, the registration of organizations author-
ized to traffic in medical cannabis, the licensing and/or permitting  of
adult-use  cannabis cultivators, processors, cooperatives, distributors,
and retail dispensaries, and the licensing of cannabinoid hemp  process-
ors and retailers, including but not limited to:
  (a)  prescribing  forms  and  establishing  application, registration,
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  permit-
tee  and  on  the  premise  of any registered organization, licensee, or
permittee;
  (d) methods of producing, processing, and packaging  adult-use  canna-
bis,  medical cannabis, cannabis-infused products, and cannabinoid hemp;
conditions of sanitation, standards of ingredients, quality, and identi-
ty of adult-use cannabis and medical cannabis products cultivated, proc-
essed, packaged, or sold by registered organizations and licensees,  and
standards  for  the  devices used to consume adult-use cannabis, medical
cannabis and cannabinoid hemp;
  (e) security requirements for adult-use cannabis  retail  dispensaries
and premises where cannabis products or medical cannabis are cultivated,
produced,  processed,  or  stored,  and  safety protocols for registered
organizations, licensees and their employees;
  (f) hearing procedures and additional causes for cancellation, revoca-
tion, and/or civil penalties against any person registered, licensed, or
permitted by the authority; and
  (g) the circumstances under and manner and process by which an  appli-
cant,  registered  organization,  licensee,  or  permittee, may apply to
change or alter its previously submitted or approved  owners,  managers,
members, directors, financiers, or interest holders.
  3. The board shall promulgate rules and regulations to:
  (a)  prevent  the  distribution of adult-use cannabis to persons under
twenty-one years of age including the marketing, packaging and  branding
of adult-use cannabis;
  (b) prevent the revenue from the sale of cannabis from going to crimi-
nal enterprises, gangs, and cartels;
  (c)  prevent  the diversion of adult-use cannabis and medical 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;

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  (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;
  (h) prevent the possession and use of adult-use cannabis  and  medical
cannabis on federal property;
  (i)  regulate  and restrict the use of cannabis and prohibit the traf-
ficking of dangerous cannabis products in order to reduce  the  rate  of
cannabis  abuse,  cannabis dependency, cannabis use disorders, and other
adverse public health and safety consequences of cannabis use;
  (j) educate the  public  and  at-risk  populations  about  responsible
cannabis use and the potential dangers of cannabis use;
  (k)  prevent  predatory  marketing  and advertising practices targeted
toward at-risk populations such as  minors,  pregnant  or  breastfeeding
women,  and demographics which disproportionately engage in higher rates
of cannabis use and display higher rates of cannabis use disorders;
  (l) notwithstanding subdivision two of this section, revoke or  refuse
to  issue any class or type of license, permit, or registration if he or
she determines that failing to do so would conflict with any federal law
or guidance pertaining to regulatory, enforcement and other systems that
states, businesses, or other institutions may implement to mitigate  the
potential  for  federal  intervention  or  enforcement against legalized
adult-use cannabis and medical cannabis programs or businesses;
  (m) notwithstanding any other section of state law,   adopt rules  and
regulations  based  on  federal  guidance provided those rules and regu-
lations are designed to comply with federal guidance and mitigate feder-
al enforcement against the registrations, licenses,  or  permits  issued
under  this  chapter,  or  the  cannabis  industry  as a whole. This may
include regulations which permit the sharing of licensee, registrant, or
permit-holder information with designated banking  or  financial  insti-
tutions; and
  (n)  establish  application, licensing, and permitting processes which
ensure all material owners and interest holders are disclosed  and  that
officials  or  other  individuals  with  control over the approval of an
application, permit, or license do not themselves have any  interest  in
an application, license, or permit.
  4.  The  board, 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
adult-use cannabis and medical cannabis, including but  not  limited  to
environmental and energy standards and restrictions on the use of pesti-
cides.
  §  13.  Deputies; employees. 1. The executive director shall appoint a
deputy director for health and safety  who  shall  be  a  duly  licensed
physician  within  the  state and who shall oversee the medical cannabis
program and all clinical aspects of the office. The  executive  director
shall  also appoint a deputy director for social and economic equity who
shall oversee the social and economic equity plan. The executive  direc-
tor  may  appoint  such  other  deputies as he or she deems necessary to
fulfill the responsibilities of the office.
  2. The executive director may appoint and remove from time to time, in
accordance with law and any applicable rules of the state civil  service
commission,  such  additional employees, under such titles as the execu-

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tive director may assign, as the executive director may  deem  necessary
for  the efficient administration of the office. They shall perform such
duties as the executive director shall assign to them. The  compensation
of such employees shall be within the amounts appropriated therefor.
  3.  Investigators  employed  by the office shall be deemed to be peace
officers for the purpose of enforcing the provisions of this chapter  or
judgments  or orders obtained for violation thereof, with all the powers
set forth in section 2.20 of the criminal procedure law.
  § 14. Disposition of moneys received for license  fees.    The  office
shall  establish a schedule of application, licensing, and renewal fees,
based upon the cost of enforcing this chapter which may  vary  based  on
the  nature,  size,  class,  or  scope  of  the  cannabis business being
licensed or the classification of the applicant, as follows:
  1. The office shall charge each registered organization, licensee  and
permittee  a  registration, licensure or permit fee, and renewal fee, as
applicable.  The fees may vary depending upon the nature, size, class or
scope of the different registration, licensure and permit activities, or
the classification of the applicant.
  2. The total fees assessed pursuant to this chapter may be set  at  an
amount  that  will  generate sufficient total revenue to fully cover the
total costs of administering this chapter.
  3. The office shall deposit all fees collected in the New  York  state
cannabis  revenue fund established pursuant to section ninety-nine-hh of
the state finance law.
  § 15. 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 a fine not exceeding five thousand dollars per violation,
per day.
  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 per violation,  per
day.
  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

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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.
  §  16.  Formal  hearings; notice and procedure.   1. The board, or any
person designated by the board for this purpose, may issue subpoenas and
administer oaths in connection with any hearing or  investigation  under
or  pursuant  to this chapter, and it shall be the duty of the board and
any persons designated by the board for such purpose to issue  subpoenas
at the request of and upon behalf of the respondent.
  2.  The  board and those designated by the board shall not be bound by
the laws of evidence in the conduct  of  hearing  proceedings,  but  the
determination shall be founded upon substantial 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 board or its designee may make appropriate
determinations and issue a final order in accordance therewith.
  7.  The  board  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.
  §  17.  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,  marketing,
or  storage of adult-use cannabis, medical cannabis or cannabinoid hemp,
or own any stock in any corporation which has any interest,  proprietary
or otherwise, direct or indirect, in any premises where adult-use canna-
bis,  medical  cannabis  or  cannabinoid  hemp is cultivated, processed,
distributed or sold, or in any business wholly or partially  devoted  to

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the cultivation, processing, distribution, sale, transportation or stor-
age  of  adult-use  cannabis,  medical  cannabis or cannabinoid hemp, or
receive any commission or profit whatsoever, direct  or  indirect,  from
any person applying for, receiving, managing or operating 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  to
which  a registered organization, licensee, permittee or applicant would
appear. Anyone who violates any of the provisions of this section  shall
be  removed  or  shall  divest him or herself of such direct or indirect
interests.
  § 18. 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 monitoring, surveillance and
education campaign regarding the legalization of adult-use cannabis  and
the impact of cannabis use on public health and safety.
  §  19.  Traffic  safety  oral fluid or other roadside detection method
pilot program. The office, in consultation with the commissioner of  the
department of motor vehicles and the superintendent of the state police,
shall  develop  and  implement a workgroup together with other states to
outline goals and standard  operating  procedures  for  a  statewide  or
regional oral fluid or other roadside detection pilot program. The work-
group  may include, but not be limited to, representatives from district
attorney offices, local and county police departments, and  other  rele-
vant public safety experts.
  §  20.  Establish  uniform  policies  and best practices. To engage in
activities with other states, territories, or jurisdictions in order  to
coordinate  and establish, uniform policies and best practices in canna-
bis regulation. These  activities  shall  prioritize  coordination  with
neighboring  and regional states, and may include, but not be limited to
establish working groups related to laboratory testing, products safety,
taxation, road safety, and any other issues identified by the  executive
director.  The executive director may enter into any contracts, or memo-
randa of understanding necessary to effectuate this provision.

                                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. Intentionally omitted.
        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.

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  § 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  any
approved  form of medical cannabis the patient should consume, including
the method of consumption and any particular strain, variety, and  quan-
tity  or  percentage  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

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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.
  9.  A practitioner who offers patient certification shall not have any
business relationship with, or own any stock in  any  corporation  which
has  any  interest, proprietary or otherwise, direct or indirect, in any
registered organization, or other business  or  premises  where  medical
cannabis  is  cultivated, processed, distributed or sold. This provision
shall not be construed to prohibit a  practitioner  who  offers  patient
certification  from providing their medical expertise to, or engaging in
medical cannabis research with, a registered organization or a  licensee
that  traffics in medical cannabis provided that the practitioner is not
compensated for or offered any consideration for  these  educational  or
research activities.
  §  31. Lawful medical use. The possession, acquisition, use, delivery,
transfer, transportation, or administration of  medical  cannabis  by  a
certified  patient, designated caregiver or designated caregiver facili-
ty, for certified medical  use,  shall  be  lawful  under  this  article
provided that:
  (a)  the  cannabis  that may be possessed by a certified patient shall
not exceed quantities determined by  the  executive  director  in  regu-
lation;
  (b)  the  cannabis that may be possessed by designated caregivers does
not exceed the quantities determined by  the  executive  director  under
paragraph (a) of this subdivision for any certified patient for whom the
caregiver is issued a valid registry identification card;
  (c) the cannabis that may be possessed by designated caregiver facili-
ties does not exceed the quantities determined by the executive director
under paragraph (a) of this subdivision for each certified patient under
the care or treatment of the facility;
  (d) the form or forms of medical cannabis that may be possessed by the
certified patient, designated caregiver or designated caregiver facility
pursuant  to a certification shall be in compliance with any recommenda-
tion or limitation by the practitioner  as  to  the  form  or  forms  of
medical  cannabis  or  dosage  for  the certified patient in the certif-
ication and consistent with any  guidance,  limitation,  and  regulation
issued by the executive director; and
  (e)  the  medical  cannabis  shall  be kept in the original package in
which it was dispensed  under  this  article,  except  for  the  portion
removed  for  immediate  consumption  for  certified  medical use by the
certified patient.
  § 32. Registry identification cards.  1. Upon approval of the  certif-
ication, the office shall issue registry identification cards for certi-
fied  patients and designated caregivers. A registry identification card
shall expire as provided in this article or  as  otherwise  provided  in
this  section.    The office shall begin issuing registry identification
cards as soon as practicable after the certifications required  by  this
chapter are granted. The office may specify a form for a registry appli-
cation,  in  which  case  the  office shall provide the form on request,

S. 7509--A                         73                         A. 9509--A

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 such information as prescribed by the office which shall include
but not be limited to:
  (a) in the case of a certified patient:
  (i)  the patient's certification, a new written certification shall be
provided with a renewal application if required by the office;
  (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  applies  to  designate  a  designated
caregiver,  the name, address, and date of birth of the designated care-
giver, and other individual  identifying  information  required  by  the
office; and
  (ix) other individual identifying information required by the office;
  (b) in the case of a designated caregiver:
  (i) the name, address, and date of birth of the designated caregiver;
  (ii)  if  the designated caregiver has a registry identification card,
the registry identification number and expiration date of that  registry
identification card; and
  (iii) other individual identifying information required by the office;
  (c)  a  statement  that  a  false statement made in the application is
punishable under section 210.45 of the penal law;
  (d) the date of the application and the  signature  of  the  certified
patient or designated caregiver, as the case may be;
  (e) any other requirements determined by the executive director.
  3. Where a certified patient is under the age of eighteen or otherwise
incapable of consent:
  (a)  The  application for a registry identification card shall be made
by an appropriate person over eighteen years  of  age.  The  application
shall state facts demonstrating that the person is appropriate.
  (b)  The designated caregiver shall be: (i) a parent or legal guardian
of the certified patient; (ii) a person designated by a parent or  legal
guardian;  (iii) a designated caregiver facility; or (iv) an appropriate
person approved by the office upon a sufficient showing that  no  parent
or legal guardian is appropriate or available.
  4.  No  person  may  be  a designated caregiver if the person is under
twenty-one years of age unless a  sufficient  showing  is  made  to  the
office  that  the  person  should  be permitted to serve as a designated
caregiver. The requirements for such a showing shall  be  determined  by
the executive director.
  5. No person may be a designated caregiver for more than one certified
patient at one time, unless approved by the office. The office may allow
a  designated  caregiver  to  serve more than one patient in cases where

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additional designating patients are immediate  family  members,  in  the
immediate  and continuous care of the caregiver, or satisfy other eligi-
bility requirements determined by the executive director in regulation.
  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 and approving a complete application under  this
section, unless it determines that the application is incomplete, factu-
ally inaccurate, or fails to satisfy any applicable regulation, 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, as applicable,
of the registry identification card;
  (c) contain a registry identification number for the certified patient
or designated caregiver, as the case may be and a  registry  identifica-
tion number;
  (d)  contain a photograph of the individual to whom the registry iden-
tification card is being issued, which shall be obtained by  the  office
in  a  manner  specified  by  the  executive  director  in  regulations;
provided, however, that if the office  requires  certified  patients  to
submit  photographs for this purpose, there shall be a reasonable accom-
modation of certified patients who are confined to their  homes  due  to
their  medical  conditions  and  may therefore have difficulty procuring
photographs;
  (e) be a secure document as determined by the office;
  (f) plainly state any recommendation or limitation by the practitioner
as to the form or forms of medical cannabis or dosage for the  certified
patient; and
  (g)  contain any other requirements determined by the executive direc-
tor.
  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

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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 or regulations promulgated hereunder 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) name, title, and signature of  an  authorized  facility  represen-
tative;
  (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  reject  an  initial  or  renewal
application.  If  the  application is approved within the 30-day period,
the office shall issue a registration as soon as is reasonably practica-
ble.
  4. 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,  in  accordance  with  minimum operating and recordkeeping
requirements determined by the executive director in regulation.
  2. The acquiring, possession, manufacture,  testing,  sale,  delivery,
transporting, distributing or dispensing of medical cannabis by a regis-
tered  organization  under this article in accordance with its registra-
tion under this article or a renewal thereof shall be lawful under  this
chapter.
  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, in  consultation
with  the  commissioner  of health, shall approve the laboratory used by

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the registered organization, including but not limited to  sampling  and
testing  protocols and standards used by the laboratory, 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   valid identification for that certified patient or designated care-
giver.  When presented with the registry identification card, the regis-
tered 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 desig-
nated caregiver, if any; the date the cannabis was sold; any recommenda-
tion 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,  and  shall  make  such records available to the office upon
demand.
  (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 may
require. When filing receipt  and  certification  information  electron-
ically  pursuant  to  this  paragraph,  the proprietor of the registered
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
as set out in regulation by the executive director.
  (b)  When dispensing medical cannabis to a certified patient or desig-
nated caregiver, the registered organization:  (i) shall not dispense an
amount greater than an amount established by the executive  director  in
regulation; and (ii) shall verify the information in subparagraph (i) of
this  paragraph by consulting the prescription monitoring program regis-
try 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, and any medical
cannabis product or form limitations or restrictions determined  by  the
executive director in regulation.
  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  may  be
developed  by  the registered organization and shall 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

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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, a certificate of good conduct under  article  twenty-
three of the correction law, or an executive pardon.
  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 as  deter-
mined  by  the executive director.   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 organiza-
tion; (b) the packaging date; (c)  any  applicable  date  by  which  the
medical cannabis should be used; (d) a warning stating, "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; (f) a warning that the medical cannabis must  be  kept
in  the  original container in which it was dispensed; and (g) any other
information required by the office.
  13. The board is authorized to make rules and regulations  restricting
the advertising and marketing of medical cannabis.
  14.  The  board is authorized to make rules and regulations regulating
the packaging, labeling, form and method of administration or ingestion,
branding and marketing of medical cannabis products  to  prohibit  acci-
dental or overconsumption.
  §  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-

S. 7509--A                         78                         A. 9509--A

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
including  those  of  the  applicant's parent companies, subsidiaries or
affiliates.  Each such person, if an  individual,  or  lawful  represen-
tative if a legal entity, shall submit an affidavit with the application
setting forth:
  (A)  any  position  of  management,  interest, or ownership during the
preceding ten years of a ten per centum or greater interest in any other
cannabis business or applicant, located in or  outside  of  this  state,
manufacturing or distributing drugs, including indirect interest manage-
ment or ownership of parent companies, subsidiaries, or affiliates;
  (B)  whether such person or any such business has had a cannabis busi-
ness application denied or withdrawn or been convicted of  a  felony  or
had  a registration or license subject to administrative action, includ-
ing but not limited to violations, penalties, or consent agreements,  or
had  any registration or license suspended or revoked in any administra-
tive or judicial proceeding; and
  (C) such other information as the executive  director  may  reasonably
require to enforce the licensing restrictions of this chapter.
  2.  The  applicant  shall  be under a continuing duty to seek approval
from the office prior to any material changes in ownership,  management,
or financial or managerial interest, or prior to substantive operational
changes,  and to disclose 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.
  3.  (a)  The  board  may  grant  a registration or approve a requested
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 and regulations;
  (iii) the applicant and its officers are ready, willing  and  able  to
properly carry on the manufacturing or distributing activity for which a
registration is sought;
  (iv)  the applicant possesses or has the right to use sufficient land,
buildings and equipment to properly carry on the activity  described  in
the application;
  (v)  it  is  in the public interest that such registration be granted,
including but not limited to:

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  (A) whether the number of registered organizations in an area will  be
adequate  or  excessive  to reasonably serve the area's patient need and
demand;
  (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 and interest holders are
of good moral character and have demonstrated a record  and  history  of
compliance with cannabis laws and regulations in the jurisdictions where
they operate or have operated cannabis licenses and/or registrations;
  (vii)  the  applicant  has entered into a labor peace agreement with a
bona fide labor organization that is actively engaged in representing or
attempting to represent the applicant's employees; and  the  maintenance
of  such  a labor peace agreement shall be an ongoing material condition
of registration; and
  (viii) the applicant satisfies any other conditions as  determined  by
the executive director.
  (b)  If  the  executive  director  is not satisfied that the applicant
should be issued a registration or granted approval to amend an existing
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.
  (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 request shall be determined by
the executive director.
  4.  A  registration  issued  under this section shall be valid for two
years from the date of issue.
  5.  (a) An application for the  renewal  of  any  registration  issued
under  this  section  shall  be  filed with the office not more than six
months nor less than four months prior  to  the  expiration  thereof.  A
late-filed  application  for  the  renewal of a registration may, in the
discretion of the executive director, be treated as an  application  for
an initial license.
  (b)  The  application  for  renewal  shall  include  such  information
prepared in the manner and detail as the executive director may require,
including but not limited to:

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  (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 any state or territo-
ry 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, and to  seek
approval  prior to any material change in ownership interest, management
or operations.
  (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 recommend the board renew a regis-
tration 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 and regu-
lations  applicable  to  the  registration application and 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 and patient need;
  (iv) the applicant has either violated or terminated its  labor  peace
agreement; or
  (v) the applicant has substantively violated this chapter, regulations
promulgated  thereunder,  or  the  laws of another jurisdiction in which
they operate or have operated a cannabis license or registration.
  (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,  violated  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, may constitute grounds for suspension, revocation or limi-
tation of the registered organization's registration or as determined by
the  executive director. The registered organization shall also be under
a continuing duty to report to the office and seek  prior  approval  for
any  material change or fact or circumstance to the information provided
in the registered organization's application.
  7. The office may suspend or revoke the registration of  a  registered
organization,  on grounds and using procedures under this article relat-
ing to a license, to the extent  consistent  with  this  article.    The
office  shall  suspend  or  revoke  the registration in the event that a

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registered organization violates  or  terminates  the  applicable  labor
peace  agreement.  Conduct  in  compliance  with  this article which may
violate conflicting federal law, shall not in and of itself  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  office  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 organization. The
executive director  shall  ensure  that  such  registered  organization,
dispensing  sites  or  approved  delivery  activities are geographically
distributed across the state to satisfy patient and  program  need.  The
executive director may register additional registered organizations.
  § 36. Intentionally omitted.
  §  37. Reports of registered organizations.  1. The executive director
shall require each registered organization to file reports by the regis-
tered 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 require each  registered  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  registered  organiza-
tion, 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, or to aid in, the imple-
mentation 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  board  shall  establish  a
cannabis  research  license that permits a licensee to produce, process,
purchase  and  possess  cannabis  for  the  following  limited  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  shall  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 subdivision

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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 subdivision 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 subdivision.
  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 shall be approved  by
the office and meet the requirements of subsection one of this section.
  5.  In  establishing  a cannabis research license, the board 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  shall
be  issued  in  the name of the applicant, specify the location at which
the cannabis researcher intends to operate, which shall  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/or sell
adult-use cannabis and cannabis products, pursuant to any fees, rules or
conditions  prescribed  by  the board in regulation, but exempt from the
restrictions on licensed adult-use cultivators, processors, and distrib-
utors from having any ownership interest in a licensed adult-use  retail
dispensary  wholly  owned  and controlled by the registered organization
pursuant to article four of this chapter.

S. 7509--A                         83                         A. 9509--A

  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/or sell adult-use c